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[Congressional Record: May 22, 1998 (House)] [Page H3894-H3936] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] [DOCID:cr22my98-161] [[pp. H3894-H3936]] CONFERENCE REPORT ON H.R. 2400, TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY [[Continued from page H3893]] [[Page H3894]] ``(e)(1) The remarriage of the surviving spouse of a veteran shall not bar the furnishing of dependency and indemnity compensation to such person as the surviving spouse of the veteran if the remarriage is terminated by death, divorce, or annulment unless the Secretary determines that the divorce or annulment was secured through fraud or collusion. ``(2) If the surviving spouse of a veteran ceases living with another person and holding himself or herself out openly to the public as that person's spouse, the bar to granting that person dependency and indemnity compensation as the surviving spouse of the veteran shall not apply. ``(3) The first month of eligibility for payment of dependency and indemnity compensation to a surviving spouse by reason of this subsection shall be the later of the month after-- ``(A) the month of the termination of such remarriage, in the case of a surviving spouse described in paragraph (1); or ``(B) the month of the cessation described in paragraph (2), in the case of a surviving spouse described in that paragraph.''. (b) Effective Date.--No payment may be made by reason of section 1311(e) of title 38, United States Code, as added by subsection (a), for any month before October 1998. SEC. 8208. EXTENSION OF PRIOR REVISION TO OFFSET RULE FOR DEPARTMENT OF DEFENSE SPECIAL SEPARATION BENEFIT PROGRAM. The amendment made by section 653 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2583) to subsection (h)(2) of section 1174 of title 10, United States Code, shall apply to any payment of separation pay under the special separation benefits program under section 1174a of that title that was made during the period beginning on December 5, 1991, and ending on September 30, 1996. SEC. 8209. SENSE OF CONGRESS CONCERNING RECOVERY FROM TOBACCO COMPANIES OF COSTS OF TREATMENT OF VETERANS FOR TOBACCO-RELATED ILLNESSES. It is the sense of the Congress-- (1) that the Attorney General or the Secretary of Veterans Affairs, as appropriate, should take all steps necessary to recover from tobacco companies amounts corresponding to the costs which would be incurred by the Department of Veterans Affairs for treatment of tobacco-related illnesses of veterans, if such treatment were authorized by law; and (2) that the Congress should authorize by law the treatment of tobacco-related illnesses of veterans upon the recovery of such amounts. Subtitle C--Temporary Student Loan Provision. SEC. 8301. TEMPORARY STUDENT LOAN PROVISION. (a) FFEL Interest Rates.-- (1) Amendment.--Section 427A of the Higher Education Act of 1965 (20 U.S.C. 1077a) is amended-- (A) by redesignating subsections (j) and (k) as subsections (k) and (l), respectively; and (B) by inserting after subsection (i) the following new subsection: ``(j) Interest Rates for New Loans Between July 1, 1998 and October 1, 1998.-- ``(1) In general.--Notwithstanding subsection (h), but subject to paragraph (2), with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B or 428C) for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to-- ``(A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus ``(B) 2.3 percent, except that such rate shall not exceed 8.25 percent. ``(2) In school and grace period Rules.--Notwithstanding subsection (h), with respect to any loan under this part (other than a loan made pursuant to section 428B or 428C) for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest for interest which accrues-- ``(A) prior to the beginning of the repayment period of the loan; or ``(B) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 428(b)(1)(M) or 427(a)(2)(C), shall be determined under paragraph (1) by substituting `1.7 percent' for `2.3 percent'. ``(3) PLUS loans.--Notwithstanding subsection (h), with respect to any loan under section 428B for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of-- ``(A)(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus ``(ii) 3.1 percent; or ``(B) 9.0 percent. ``(4) Consultation.--The Secretary shall determine the applicable rate of interest under this subsection after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination.''. (2) Conforming amendment.--Section 428B(d)(4) (20 U.S.C. 1078-2(d)(4)) is amended by striking ``section 427A(c)'' and inserting ``section 427A for loans made under this section''. (b) Special Allowances.-- (1) Amendment.--Section 438(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)) is amended by adding at the end the following new subparagraph: ``(G) Loans disbursed between july 1, 1998, and october 1, 1998.-- ``(i) In general.--Subject to paragraph (4) and clauses (ii), (iii), and (iv) of this subparagraph, and except as provided in subparagraph (B), the special allowance paid pursuant to this subsection on loans for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, shall be computed-- ``(I) by determining the average of the bond equivalent rates of 91-day Treasury bills auctioned for such 3-month period; ``(II) by subtracting the applicable interest rates on such loans from such average bond equivalent rate; ``(III) by adding 2.8 percent to the resultant percent; and ``(IV) by dividing the resultant percent by 4. ``(ii) In school and grace period.--In the case of any loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, and for which the applicable rate of interest is described in section 427A(j)(2), clause (i)(III) of this subparagraph shall be applied by substituting `2.2 percent' for `2.8 percent'. ``(iii) PLUS loans.--In the case of any loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, and for which the applicable rate of interest is described in section 427A(j)(3), clause (i)(III) of this subparagraph shall be applied by substituting `3.1 percent' for `2.8 percent', subject to clause (v) of this subparagraph. ``(iv) Consolidation loans.--This subparagraph shall not apply in the case of any consolidation loan. ``(v) Limitation on special allowances for PLUS loans.--In the case of PLUS loans made under section 428B and disbursed on or after July 1, 1998, and before October 1, 1998, for which the interest rate is determined under 427A(j)(3), a special allowance shall not be paid for such loan for such unless the rate determined under subparagraph (A) of such section (without regard to subparagraph (B) of such section) exceeds 9.0 percent.''. (2) Conforming amendments.--Section 438(b)(2) of such Act is further amended-- (A) in subparagraph (A), by striking ``(E), and (F)'' and inserting ``(E), (F), and (G)''; (B) in subparagraph (B)(iv), by striking ``(E), or (F)'' and inserting ``(E), (F), or (G)''; and (C) in subparagraph (C)(ii), by striking ``In the case'' and inserting ``Subject to subparagraph (G), in the case''. (c) Direct Loan Interest Rates.--Section 455(b) (20 U.S.C. 1087e(b)) is amended-- (1) by redesignating paragraph (5) as paragraph (6); and (2) by inserting after paragraph (4) the following new paragraph: ``(5) Temporary interest rate provision.-- ``(A) Rates for fdsl and fdusl.--Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to-- ``(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus ``(ii) 2.3 percent, except that such rate shall not exceed 8.25 percent. ``(B) In school and grace period rules.--Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest for interest which accrues-- ``(i) prior to the beginning of the repayment period of the loan; or ``(ii) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 428(b)(1)(M) or 427(a)(2)(C), shall be determined under subparagraph (A) by substituting `1.7 percent' for `2.3 percent'. ``(C) PLUS loans.--Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall be determined under subparagraph (A)-- ``(i) by substituting `3.1 percent' for `2.3 percent'; and ``(ii) by substituting `9.0 percent' for `8.25 percent'.''. Subtitle D--Block Grants for Social Services SEC. 8401. BLOCK GRANTS FOR SOCIAL SERVICES. (a) Reduction of Grants.--Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is amended by striking paragraphs (7) and (8) and inserting the following: ``(7) $2,380,000,000 for the fiscal year 1997; ``(8) $2,380,000,000 for the fiscal year 1998; ``(9) $2,380,000,000 for the fiscal year 1999; ``(10) $2,380,000,000 for the fiscal year 2000; and ``(11) $1,700,000,000 for the fiscal year 2001 and each fiscal year thereafter.''. (b) Limitation on Amount of TANF Funds Transferable.-- Section 404(d)(2) of the Social Security Act (42 U.S.C. 604(d)(2)) is amended to read as follows: ``(2) Limitation on amount transferable to title xx programs.-- ``(A) In general.--A State may use not more than the applicable percent of the amount of any grant made to the State under section 403(a) for a fiscal year to carry out State programs pursuant to title XX. [[Page H3895]] ``(B) Applicable percent.--For purposes of subparagraph (A), the applicable percent is 4.25 percent in the case of fiscal year 2001 and each succeeding fiscal year.''. (c) Effective Date.--The amendments made by this section take effect on October 1, 1998. TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986 SEC. 901. SHORT TITLE; AMENDMENT OF 1986 CODE. (a) Short Title.--This title may be cited as the ``Surface Transportation Revenue Act of 1998''. (b) Amendment of 1986 Code.--Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. SEC. 902. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUND. (a) Extension of Taxes.-- (1) In general.--The following provisions are each amended by striking ``1999'' each place it appears and inserting ``2005'': (A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax on certain buses). (B) Section 4041(a)(2)(B) (relating to rate of tax on special motor fuels), as amended by section 907(a)(1) of the Taxpayer Relief Act of 1997. (C) Section 4041(m)(1)(A) (relating to certain alcohol fuels), as amended by section 907(b) of the Taxpayer Relief Act of 1997. (D) Section 4051(c) (relating to termination of tax on heavy trucks and trailers). (E) Section 4071(d) (relating to termination of tax on tires). (F) Section 4081(d)(1) (relating to termination of tax on gasoline, diesel fuel, and kerosene). (G) Section 4481(e) (relating to period tax in effect). (H) Section 4482(c)(4) (relating to taxable period). (I) Section 4482(d) (relating to special rule for taxable period in which termination date occurs). (2) Other provisions.-- (A) Floor stocks refunds.--Section 6412(a)(1) (relating to floor stocks refunds) is amended-- (i) by striking ``1999'' each place it appears and inserting ``2005'', and (ii) by striking ``2000'' each place it appears and inserting ``2006''. (B) Installment payments of highway use tax.--Section 6156(e)(2) (relating to installment payments of highway use tax on use of highway motor vehicles) is amended by striking ``1999'' and inserting ``2005''. (b) Extension of Certain Exemptions.--The following provisions are each amended by striking ``1999'' and inserting ``2005'': (1) Section 4221(a) (relating to certain tax-free sales). (2) Section 4483(g) (relating to termination of exemptions for highway use tax). (c) Extension of Deposits Into, and Certain Transfers From, Trust Fund.-- (1) In general.--Subsection (b), and paragraphs (2) and (3) of subsection (c), of section 9503 (relating to the Highway Trust Fund) are each amended-- (A) by striking ``1999'' each place it appears and inserting ``2005'', and (B) by striking ``2000'' each place it appears and inserting ``2006''. (2) Motorboat and small-engine fuel tax transfers.-- (A) In general.--Paragraphs (4)(A)(i) and (5)(A) of section 9503(c) are each amended by striking ``1998'' and inserting ``2005''. (B) Conforming amendments to land and water conservation fund.--Section 201(b) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-11(b)) is amended-- (i) by striking ``1997'' and inserting ``2003'', and (ii) by striking ``1998'' each place it appears and inserting ``2004''. (3) Conforming amendment.--The heading for paragraph (3) of section 9503(c) is amended to read as follows: ``(3) Floor stocks refunds.--''. (d) Extension and Expansion of Expenditures From Trust Fund.-- (1) Highway account.-- (A) Extension of expenditure authority.--Paragraph (1) of section 9503(c) is amended by striking ``1998'' and inserting ``2003''. (B) Expansion of purposes.--Paragraph (1) of section 9503(c) is amended-- (i) by striking ``or'' at the end of subparagraph (C), and (ii) by striking ``1991.'' in subparagraph (D) and all that follows through the end of paragraph (1) and inserting ``1991, or ``(E) authorized to be paid out of the Highway Trust Fund under the Transportation Equity Act for the 21st Century. In determining the authorizations under the Acts referred to in the preceding subparagraphs, such Acts shall be applied as in effect on the date of enactment of the Transportation Equity Act for the 21st Century.''. (2) Mass transit account.-- (A) Extension of expenditure authority.--Paragraph (3) of section 9503(e) is amended by striking ``1998'' and inserting ``2003''. (B) Expansion of purposes.--Paragraph (3) of section 9503(e) is amended-- (i) by striking ``or'' at the end of subparagraph (A), (ii) by adding ``or'' at the end of subparagraph (B), and (iii) by striking all that follows subparagraph (B) and inserting: ``(C) the Transportation Equity Act for the 21st Century, as such section and Acts are in effect on the date of enactment of the Transportation Equity Act for the 21st Century.''. (e) Technical Correction Relating to Transfers to Mass Transit Account.-- (1) In general.--Section 9503(e)(2) is amended by striking the last sentence and inserting the following: ``For purposes of the preceding sentence, the term `mass transit portion' means, for any fuel with respect to which tax was imposed under section 4041 or 4081 and otherwise deposited into the Highway Trust Fund, the amount determined at the rate of-- ``(A) except as otherwise provided in this sentence, 2.86 cents per gallon, ``(B) 1.43 cents per gallon in the case of any partially exempt methanol or ethanol fuel (as defined in section 4041(m)) none of the alcohol in which consists of ethanol, ``(C) 1.86 cents per gallon in the case of liquefied natural gas, ``(D) 2.13 cents per gallon in the case of liquefied petroleum gas, and ``(E) 9.71 cents per MCF (determined at standard temperature and pressure) in the case of compressed natural gas.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect as if included in the amendment made by section 901(b) of the Taxpayer Relief Act of 1997. (f) Clerical Amendments.-- (1) Paragraph (1) of section 9503(b) is amended by striking subparagraph (C), by striking ``and tread rubber'' in subparagraph (D), and by redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and (E), respectively. (2) Clause (i) of section 9503(c)(2)(A) is amended by adding ``and'' at the end of subclause (II), by striking subclause (III), and by redesignating subclause (IV) as subclause (III). (3) Clause (ii) of section 9503(c)(2)(A) is amended by striking ``gasoline, special fuels, and lubricating oil'' each place it appears and inserting ``fuel''. SEC. 903. EXTENSION AND MODIFICATION OF TAX BENEFITS FOR ALCOHOL FUELS. (a) Extension of Tax Benefits.-- (1) Extension.--The following provisions are each amended by striking ``2000'' each place it appears and inserting ``2007'': (A) Section 4041(b)(2)(C) (relating to termination of reduction in tax for qualified methanol and ethanol fuel). (B) Section 4041(k)(3) (relating to termination of rates relating to fuels containing alcohol). (C) Section 4081(c)(8) (relating to termination of special rate for taxable fuels mixed with alcohol). (D) Section 4091(c)(5) (relating to termination of reduced rate of tax for aviation fuel in alcohol mixture, etc.). (2) Extension of refund authority.--Paragraph (4) of section 6427(f) (relating to refund for gasoline, diesel fuel, and aviation fuel used to produce certain alcohol fuels), as amended by the Taxpayer Relief Act of 1997, is amended by striking ``1999'' and inserting ``2007''. (3) Credit for alcohol used as a fuel.--Paragraph (1) of section 40(e) (relating to termination of credit for alcohol used as a fuel) is amended-- (A) by striking ``December 31, 2000'' in subparagraph (A) and inserting ``December 31, 2007'', and (B) by striking ``January 1, 2001'' and inserting ``January 1, 2008''. (4) Tariff schedule.--Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 3007) are each amended in the effective period column by striking ``10/1/2000'' each place it appears and inserting ``10/1/2007''. (b) Modification.-- (1) In general.--Subsection (h) of section 40 (relating to alcohol used as fuel) is amended to read as follows: ``(h) Reduced Credit for Ethanol Blenders.-- ``(1) In general.--In the case of any alcohol mixture credit or alcohol credit with respect to any sale or use of alcohol which is ethanol during calendar years 2001 through 2007-- ``(A) subsections (b)(1)(A) and (b)(2)(A) shall be applied by substituting `the blender amount' for `60 cents', ``(B) subsection (b)(3) shall be applied by substituting `the low-proof blender amount' for `45 cents' and `the blender amount' for `60 cents', and ``(C) subparagraphs (A) and (B) of subsection (d)(3) shall be applied by substituting `the blender amount' for `60 cents' and `the low-proof blender amount' for `45 cents'. ``(2) Amounts.--For purposes of paragraph (1), the blender amount and the low-proof blender amount shall be determined in accordance with the following table: In the case of any sale or use The blender amount The low-proof during calendar year: is: blender amount is: 2001 or 2002.................... 53 cents.......... 39.26 cents 2003 or 2004.................... 52 cents.......... 38.52 cents 2005, 2006, or 2007............. 51 cents.......... 37.78 cents.''. (2) Conforming amendments.-- (A) Section 4041(b)(2) is amended-- (i) in subparagraph (A)(i), by striking ``5.4 cents'' and inserting ``the applicable blender rate'', and (ii) by redesignating subparagraph (C), as amended by subsection (a)(1)(A), as subparagraph (D) and by inserting after subparagraph (B) the following: ``(C) Applicable blender rate.--For purposes of subparagraph (A)(i), the applicable blender rate is-- ``(i) except as provided in clause (ii), 5.4 cents, and ``(ii) for sales or uses during calendar years 2001 through 2007, \1/10\ of the blender amount applicable under section 40(h)(2) for the calendar year in which the sale or use occurs.''. (B) Subparagraph (A) of section 4081(c)(4) is amended to read as follows: [[Page H3896]] ``(A) General rules.-- ``(i) Mixtures containing ethanol.--Except as provided in clause (ii), in the case of a qualified alcohol mixture which contains gasoline, the alcohol mixture rate is the excess of the rate which would (but for this paragraph) be determined under subsection (a) over-- ``(I) in the case of 10 percent gasohol, the applicable blender rate (as defined in section 4041(b)(2)(C)) per gallon, ``(II) in the case of 7.7 percent gasohol, the number of cents per gallon equal to 77 percent of such applicable blender rate, and ``(III) in the case of 5.7 percent gasohol, the number of cents per gallon equal to 57 percent of such applicable blender rate. ``(ii) Mixtures not containing ethanol.--In the case of a qualified alcohol mixture which contains gasoline and none of the alcohol in which consists of ethanol, the alcohol mixture rate is the excess of the rate which would (but for this paragraph) be determined under subsection (a) over-- ``(I) in the case of 10 percent gasohol, 6 cents per gallon, ``(II) in the case of 7.7 percent gasohol, 4.62 cents per gallon, and ``(III) in the case of 5.7 percent gasohol, 3.42 cents per gallon.''. (C) Section 4081(c)(5) is amended by striking ``5.4 cents'' and inserting ``the applicable blender rate (as defined in section 4041(b)(2)(C))''. (D) Section 4091(c)(1) is amended by striking ``13.4 cents'' each place it appears and inserting ``the applicable blender amount'' and by adding at the end the following: ``For purposes of this paragraph, the term `applicable blender amount' means 13.3 cents in the case of any sale or use during 2001 or 2002, 13.2 cents in the case of any sale or use during 2003 or 2004, 13.1 cents in the case of any sale or use during 2005, 2006, or 2007, and 13.4 cents in the case of any sale or use during 2008 or thereafter.''. (3) Effective date.--The amendments made by this subsection shall take effect on January 1, 2001. SEC. 904. MODIFICATIONS TO HIGHWAY TRUST FUND. (a) Determination of Trust Fund Balances After September 30, 1998.-- (1) In general.--Section 9503 (relating to Highway Trust Fund) is amended by adding at the end the following new subsection: ``(f) Determination of Trust Fund Balances After September 30, 1998.--For purposes of determining the balances of the Highway Trust Fund and the Mass Transit Account after September 30, 1998-- ``(1) the opening balance of the Highway Trust Fund (other than the Mass Transit Account) on October 1, 1998, shall be $8,000,000,000, and ``(2) no interest accruing after September 30, 1998, on any obligation held by such Fund shall be credited to such Fund. The Secretary shall cancel obligations held by the Highway Trust Fund to reflect the reduction in the balance under this subsection.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on October 1, 1998. (b) Repeal of Limitation on Expenditures Added by Taxpayer Relief Act of 1997.-- (1) In general.--Subsection (c) of section 9503 (relating to expenditures from Highway Trust Fund) is amended by striking paragraph (7). (2) Effective date.--The amendment made by paragraph (1) shall take effect as if included in the amendments made by section 901 of the Taxpayer Relief Act of 1997. (c) Limitation on Expenditure Authority.--Subsection (b) of section 9503 (relating to transfers to Highway Trust Fund) is amended by adding at the end the following new paragraph: ``(6) Limitation on transfers to highway trust fund.-- ``(A) In general.--Except as provided in subparagraph (B), no amount may be appropriated to the Highway Trust Fund on and after the date of any expenditure from the Highway Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to-- ``(i) any provision of law which is not contained or referenced in this title or in a revenue Act, and ``(ii) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this paragraph. ``(B) Exception for prior obligations.--Subparagraph (A) shall not apply to any expenditure to liquidate any contract entered into (or for any amount otherwise obligated) before October 1, 2003, in accordance with the provisions of this section.''. (d) Modification of Mass Transit Account Rules on Adjustments of Apportionments.--Paragraph (4) of section 9503(e) is amended to read as follows: ``(4) Limitation.--Rules similar to the rules of subsection (d) shall apply to the Mass Transit Account.''. SEC. 905. PROVISIONS RELATING TO AQUATIC RESOURCES TRUST FUND. (a) Increased Transfers.-- (1) Subparagraph (D) of section 9503(b)(4), as amended by section 911, is amended by striking ``exceeds 11.5 cents per gallon,'' and inserting ``exceeds-- ``(i) 11.5 cents per gallon with respect to taxes imposed before October 1, 2001, ``(ii) 13 cents per gallon with respect to taxes imposed after September 30, 2001, and before October 1, 2003, and ``(iii) 13.5 cents per gallon with respect to taxes imposed after September 30, 2003, and before October 1, 2005,''. (2) Clause (ii) of section 9503(c)(4)(A) is amended by adding at the end the following new flush sentence: ``In making the determination under subclause (II) for any fiscal year, the Secretary shall not take into account any amount appropriated from the Boat Safety Account in any preceding fiscal year but not distributed.'' (b) Expansion of Expenditure Authority From Boat Safety Account.--Section 9504(b)(2) (relating to expenditures from Sport Fish Restoration Account) is amended-- (1) in subparagraph (A) by striking ``October 1, 1988), and'' and inserting ``the date of the enactment of the Transportation Equity Act for the 21st Century),'', (2) in subparagraph (B) by striking ``November 29, 1990'' and inserting ``the date of the enactment of the Transportation Equity Act for the 21st Century'', and (3) by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph: ``(B) to carry out the purposes of section 7404(d) of the Transportation Equity Act for the 21st Century (as in effect on the date of the enactment of such Act), and''. (c) Extension and Expansion of Expenditure Authority From Boat Safety Account.--Section 9504(c) (relating to expenditures from Boat Safety Account) is amended-- (1) by striking ``1998'' and inserting ``2003'', and (2) by striking ``October 1, 1988'' and inserting ``the date of enactment of the Transportation Equity Act for the 21st Century''. (d) Limitation on Expenditure Authority.--Section 9504 (relating to Aquatic Resources Trust Fund) is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following: ``(d) Limitation on Transfers to Aquatic Resources Trust Fund.-- ``(1) In general.--Except as provided in paragraph (2), no amount may be appropriated or paid to any Account in the Aquatic Resources Trust Fund on and after the date of any expenditure from any such Account which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to-- ``(A) any provision of law which is not contained or referenced in this title or in a revenue Act, and ``(B) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this subsection. ``(2) Exception for prior obligations.--Paragraph (1) shall not apply to any expenditure to liquidate any contract entered into (or for any amount otherwise obligated) before October 1, 2003, in accordance with the provisions of this section.''. (e) Effective Date.--The amendments made by this section shall take effect on the date of enactment of this Act. SEC. 906. REPEAL OF 1.25 CENT TAX RATE ON RAIL DIESEL FUEL. (a) In General.--Section 4041(a)(1)(C)(ii) (relating to rate of tax on trains) is amended-- (1) in subclause (II), by striking ``October 1, 1999'' and inserting ``November 1, 1998'', and (2) in subclause (III), by striking ``September 30, 1999'' and inserting ``October 31, 1998''. (b) Conforming Amendments.-- (1) Section 6421(f)(3)(B) is amended-- (A) in clause (ii), by striking ``October 1, 1999'' and inserting ``November 1, 1998'', and (B) in clause (iii), by striking ``September 30, 1999'' and inserting ``October 31, 1998''. (2) Section 6427(l)(3)(B) is amended-- (A) in clause (ii), by striking ``October 1, 1999'' and inserting ``November 1, 1998'', and (B) in clause (iii), by striking ``September 30, 1999'' and inserting ``October 31, 1998''. SEC. 907. ADDITIONAL QUALIFIED EXPENSES AVAILABLE TO NONAMTRAK STATES. (a) In General.--Section 977(e)(1)(B) of the Taxpayer Relief Act of 1997 (defining qualified expenses) is amended-- (1) by striking ``and'' at the end of clause (iii), and (2) by striking clause (iv) and inserting the following: ``(iv) capital expenditures related to State-owned rail operations in the State, ``(v) any project that is eligible to receive funding under section 5309, 5310, or 5311 of title 49, United States Code, ``(vi) any project that is eligible to receive funding under section 103, 130, 133, 144, 149, or 152 of title 23, United States Code, ``(vii) the upgrading and maintenance of intercity primary and rural air service facilities, and the purchase of intercity air service between primary and rural airports and regional hubs, ``(viii) the provision of passenger ferryboat service within the State, ``(ix) the provision of harbor improvements within the State, and ``(x) the payment of interest and principal on obligations incurred for such acquisition, upgrading, maintenance, purchase, expenditures, provision, and projects.'' (b) Effective Date.--The amendments made by this section shall take effect as if included in the enactment of section 977 of the Taxpayer Relief Act of 1997. SEC. 908. DELAY IN EFFECTIVE DATE OF NEW REQUIREMENT FOR APPROVED DIESEL OR KEROSENE TERMINALS. Subsection (f) of section 1032 of the Taxpayer Relief Act of 1997 is amended to read as follows: ``(f) Effective Dates.-- ``(1) Except as provided in paragraph (2), the amendments made by this section shall take effect on July 1, 1998. ``(2) The amendment made by subsection (d) shall take effect on July 1, 2000.''. SEC. 909. SIMPLIFIED FUEL TAX REFUND PROCEDURES. (a) In General.--Subparagraph (A) of section 6427(i)(2) is amended to read as follows: [[Page H3897]] ``(A) In general.--If, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), (l), and (q) of this section and section 6421 to such person with respect to fuel used during-- ``(i) such quarter, or ``(ii) any prior quarter (for which no other claim has been filed) during such taxable year, a claim may be filed under this section with respect to such fuel.''. (b) Conforming Amendments.-- (1) Subsection (i) of section 6427 is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4). (2) Paragraph (2) of section 6427(k) is amended to read as follows: ``(2) Exception.--Paragraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), or (4) of subsection (i).''. (3) Paragraph (2) of section 6421(d) is amended to read as follows: ``(2) Exception.-- ``For payments per quarter based on aggregate amounts payable under this section and section 6427, see section 6427(i)(2).''. (c) Effective Date.--The amendments made by this section shall take effect on October 1, 1998. SEC. 910. ELECTION TO RECEIVE TAXABLE CASH COMPENSATION IN LIEU OF NONTAXABLE QUALIFIED TRANSPORTATION FRINGE BENEFITS. (a) No Constructive Receipt.-- (1) In general.--Paragraph (4) of section 132(f) (relating to qualified transportation fringe) is amended to read as follows: ``(4) No constructive receipt.--No amount shall be included in the gross income of an employee solely because the employee may choose between any qualified transportation fringe and compensation which would otherwise be includible in gross income of such employee.''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 1997. (b) Inflation Adjustment Only After 1999.-- (1) In general.--Paragraph (6) of section 132(f) (relating to qualified transportation fringe) is amended to read as follows: ``(6) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning in a calendar year after 1999, the dollar amounts contained in subparagraphs (A) and (B) of paragraph (2) shall be increased by an amount equal to-- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting `calendar year 1998' for `calendar year 1992'. ``(B) Rounding.--If any increase determined under subparagraph (A) is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5.''. (2) Conforming amendments.--Section 132(f)(2) is amended-- (A) by striking ``$60'' in subparagraph (A) and inserting ``$65'', and (B) by striking ``$155'' in subparagraph (B) and inserting ``$175''. (3) Effective Date.--The amendments made by this subsection shall apply to taxable years beginning after December 31, 1998. (c) Increase in Maximum Exclusion for Employer-Provided Transit Passes.-- (1) In general.--Subparagraph (A) of section 132(f)(2) (relating to limitation on exclusion) is amended by striking ``$65'' and inserting ``$100''. (2) New base period for inflation adjustment.--Subparagraph (A) of section 132(f)(6) is amended by adding at the end the following flush sentence: ``In the case of any taxable year beginning in a calendar year after 2002, clause (ii) shall be applied by substituting `calendar year 2001' for `calendar year 1998' for purposes of adjusting the dollar amount contained in paragraph (2)(A).''. (3) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2001. SEC. 911. REPEAL OF NATIONAL RECREATIONAL TRAILS TRUST FUND. (a) In General.--Section 9511 (relating to National Recreational Trails Trust Fund) is repealed. (b) Conforming Amendments.-- (1) Section 9503(c) is amended by striking paragraph (6). (2) Subparagraph (D) of section 9503(b)(4) is amended to read as follows: ``(D) in the case of gasoline and special motor fuels used as described in paragraph (4)(D) or (5)(B) of subsection (c), section 4041 or 4081 with respect to so much of the rate of tax as exceeds 11.5 cents per gallon,''. (3) The table of sections for subchapter A of chapter 98 is amended by striking the item relating to section 9511. SEC. 912. IDENTIFICATION OF LIMITED TAX BENEFITS SUBJECT TO LINE ITEM VETO. For purposes of part C of title X of the Congressional Budget and Impoundment Control Act of 1974 (relating to line item veto), the Joint Committee on Taxation has determined that this title does not contain any limited tax benefit (as defined in such part). And the Senate agree to the same. Pursuant to the order of the House on April 1, 1998, the Speaker appointed the following conferees for consideration of the House bill (except title XI) and the Senate amendment (except title VI), and modifications committed to conference: Bud Shuster, Thomas E. Petri, Sherwood L. Boehlert, Jay Kim, Stephen Horn, Tillie K. Fowler, Richard H. Baker, Robert W. Ney, Jack Metcalf, James L. Oberstar, Nick Rahall, Robert A. Borski, Robert E. Wise, Jr., Jim Clyburn, Bob Filner, As additional conferees from the Committee on Commerce, for consideration of provisions in the House bill and Senate amendment relating to the Congestion Mitigation and Air Quality Improvement Program; and sections 124, 125, 303, and 502 of the House bill; and sections 1407, 1601, 1602, 2103, 3106, 3301-3302, 4101-4104, and 5004 of the Senate amendment and modifications committed for conference: Tom Bliley, Michael Bilirakis, John D. Dingell, Provided that Mr. Tauzin is appointed in lieu of Mr. Bilirakis for consideration of sections 1407, 2103, and 3106 of the Senate amendment. Billy Tauzin, As additional conferees from the Committee on Ways and Means, for consideration of title XXI of the House bill and title VI of the Senate amendment, and modifications committed to conference: Jim Nussle, Kenny C. Hulshof, As additional conferees from the Committee on Ways and Means, for consideration of title XXI of the House bill and title VI of the Senate amendment, and modifications committed to conference: Charles B. Rangel, Managers on the Part of the House. From the Committee on Environment and Public Works: John W. Chafee, John Warner, Bob Smith, Dirk Kempthorne, Jim Inhofe, Craig Thomas, Christopher S. Bond, Tim Hutchinson, Wayne Allard, Max Baucus, Daniel Patrick Moynihan, Harry Reid, Bob Graham, Joseph Lieberman, Barbara Boxer, From the Committee on Finance: William V. Roth, Jr., Chuck Grassley, Orrin Hatch, John Breaux, Kent Conrad, From the Committee on Banking, Housing, and Urban Affairs: Alfonse D'Amato, Phil Gramm, Paul Sarbanes, Chris Dodd, From the Committee on Commerce, Science, and Transportation: Ernest Hollings, From the Committee on the Budget: Pete Domenici, Don Nickles, Patty Murray, Managers on the Part of the Senate. JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2400) to authorize funds for Federal-aid highways, highway safety programs, and transit programs, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report: The Senate amendment struck all of the House bill after the enacting clause and inserted a substitute text. The House recedes from its disagreement to the amendment of the Senate with an amendment that is a substitute for the House bill and the Senate amendment. The differences between the House bill, the Senate amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting and clerical changes. TITLE I--FEDERAL-AID HIGHWAYS Short Title, Table of Contents House bill The title of the House bill is the ``Building Efficient Surface Transportation And Equity Act of 1998,'' ``BESTEA.'' Section 1 of the House bill also includes a table of contents. Senate amendment The title of the Senate amendment is the ``Intermodal Surface Transportation Efficiency Act of 1998,'' of ``ISTEA II.'' Section 1 of the Senate amendment also includes a table of contents for the bill. Conference substitute The Conference adopts a substitute provision. The title of the bill is ``Transportation Equity Act for the 21st Century'' or ``TEA 21.'' [[Page H3898]] Definitions House bill The House bill includes definitions for two terms in the free-standing provisions. The term ``Interstate System'' has the meaning given the term by section 101 of title 23 of the United States Code. The term ``Secretary'' is the Secretary of Transportation. Senate amendment For the purpose of the free-standing provisions, the Senate amendment defines the term ``Secretary'' as the Secretary of Transportation. Conference substitute The conference adopts the House provision. Savings Clause House bill The House bill provides that amendments made by this Act shall not affect any apportionment or allocations of any funds that occurred before the date of enactment of this Act unless the bill specifically directs that the allocation or apportionment be modified. Senate amendment The Senate amendment contains no provision similar to the House savings clause. Conference substitute The Conference does not include the House provision. Amendments to Title 23 House bill Section 101 of the House bill directs that each amendment in the bill, or repeal of a section or other provision of law, is an amendment to title 23 of the United States Code unless the bill states otherwise. Senate amendment The Senate amendment contains no provision comparable to the Hose provision. Conference substitute The conference report adopts the House provision. Short Title for Title I House bill The House bill contains no comparable provision. Senate amendment The Senate amendment includes a short title for the first title of the bill covering highway programs. This title may be cited as the ``Surface Transportation Act of 1998''. Conference substitute The conference report does not include the Senate provision. Division or Segmentation of Projects House bill The House bill authorizes a State carrying out a project with Federal funds to divide or segment the project provided that the division or segmentation complies with the requirements of the National Environmental Policy Act of 1969. Senate amendment The Senate amendment contains no comparable provision. Conference substitute The Conference adopts the House provision. This provision clarifies that by listing high priority projects in subsection 127(c) of this Act and similar projects in previous legislation, Congress is establishing the limits of the projects for purposes of eligibility for associated Federal-aid highway funding. The listing or identification of a project is not intended to define the scope of the project for purposes of complying with all Federal requirements, including those of the National Environmental Policy Act (NEPA). As the associated Federal-aid highway funding for these projects typically is not sufficient to finance the Federal share of all improvements within the project limits, Congress recognizes that a State needs the flexibility to advance logical segments of the overall project. Any segment of a project must still have to connect logical termini, have independent utility, and not restrict consideration of alternatives for other reasonably foreseeable transportation improvements. This provision does not waive safety or contracting requirements for the underlying segment. In the case of the South Lawrence Trafficway in Kansas, the State may advance the segment between U.S. 59 and Kansas Route 10 as a non-Federally funded project without triggering NEPA. Technical Amendment Metropolitan Planning Set Aside House bill Section 104(e) amends the metropolitan planning set aside provision of section 104(f) of title 23, United States Code by deleting the references to outdated funding programs and providing that the set aside shall not be deducted from funds for the Recreational Trails Program. Senate amendment Section 1112(b)(1) makes minor technical amendments to the metropolitan planning set aside provision in section 104(f) of title 23, United States Code. Conference substitute The Conference adopts the House provision. Audits of the Highway Trust Fund House bill The House bill contains no comparable provision. Senate amendment Section 1102(e) amends section 104(i) of title 23, United States Code to authorize the Secretary to use administrative funds to reimburse the Office of Inspector General of the Department of Transportation for annual audits of financial statements in accordance with section 3521 of title 31, United States Code. Conference substitute The Conference adopts the Senate provision. Notice to the States House bill Section 104(d) makes technical corrections to section 104 of title 23, United States Code. It also directs the Secretary to transmit to Congress within 21 days a written statement setting forth the reason for not making an apportionment in a timely manner. This section has been included in response to the withholding of apportionments in fiscal year 1997. The apportionments were held up for several months due to an error in crediting receipts into the Highway Trust Fund. Ultimately, a correction was made resulting in the redistribution of nearly $1 billion in federal-aid highway funds. The withholding was done administratively. This amendment would require a written explanation of any withholding in the future. Senate amendment Section 1102(f)(1) makes technical corrections to section 104 of title 23, United States Code. Conference substitute The Conference adopts the House provision. Technical Amendments House bill The House bill contains no comparable provision. Senate amendment Section 1102(f)(1) and (2) make technical corrections to section 104 of title 23, United States Code. Conference substitute The Conference adopts the Senate provision. Repeal of Section 150 House bill The House bill contains no comparable provision. Senate amendment Section 1102(g)(2) repeals section 150 of title 23, United States Code. Section 150 provided for the allocation of funds based on an outdated concept of urban systems. Conference substitute The Conference adopts the Senate provision. Surface Transportation Obligations in Urban Areas House bill Subsection 108(g) extends the current provision in subsection 133(f) requiring the proportional obligation of surface transportation program funds made available for urban areas over the period from 1998 through 2003. Senate amendment Section 1104 continues current procedure in subsection 133(f) of title 23, United States Code regarding the sub- allocation of surface transportation program (``STP'') funds to urbanized areas. The purpose of this requirement is to ensure that the obligation rate of the STP funds for urbanized areas within a State is consistent with the larger obligation rate for all Federal-aid highway apportionments within the State. This section amends current law to require States to comply with obligation rates over two equal three- year periods, as opposed to the existing requirement of complying over a single six-year period. Conference substitute The Conference adopts the Senate provision. Emergency Relief House bill Section 117(a)(1) makes several technical corrections to the Federal share payable section under the Emergency Relief Program. Senate amendment Section 1105 restates the eligibility for highway and bridge projects and the funding requirements for the emergency relief (``ER'') program. ER funds can be used only for emergency repairs done to restore essential highway traffic, to minimize the extent of damage resulting from a natural disaster or catastrophic failure, or to protect the remaining facility. The Secretary is also authorized to borrow amounts necessary from any program under title 23 for emergency relief work. Any additional funds used shall be reimbursed with future ER appropriations. The purpose of allowing the Secretary to borrow funds from title 23 programs is to provide a ``cushion'' to allow project work to continue if all ER program funds are used. This section also amends current law, which limits the availability of ER funds to two years, to make them available until expended. Conference substitute The Conference adopts the Senate provision. Access to Kennedy Center House bill Section 117(e) requires the Secretary, in cooperation with the District of Columbia, [[Page H3899]] the John F. Kennedy Center for the Performing Arts, and the Department of the Interior, and in consultation with other interested persons, to conduct a study of methods to improve pedestrian and vehicular access to the John F. Kennedy Center for the Performing Arts. The bill authorizes $500,000 to be taken out of the Highway Trust fund for the study. Senate amendment The Senate amendment contains no comparable provision. Conference substitute The Conference adopts the House provision. Smithsonian Transportation Program House bill Section 117(f) provides assistance to the Smithsonian Institute for transportation-related activities, including exhibitions and educational outreach programs, the acquisition of transportation-related artifacts, and transportation-related research programs. The bill authorizes $5 million annually for this assistance. Senate amendment The Senate amendment contains no comparable provision. Conference substitution The Conference adopts the House provision with a reduction in the annual authorization to $1 million. Recreational Trails House bill Section 114 codifies the Recreational Trails Program authorized in ISTEA as Section 205 of Title 23. The program distributes to States a portion of gas tax revenues attributable to non-highway use for trail projects. The Secretary is required to administer this program for the purpose of providing and maintaining recreational trails. The Federal share for the program is 50 percent of cost. Certain other Federal programs can be used as matching funds. Eligible costs include educational programs, the development, construction and rehabilitation of trails, and the acquisition of easements. The existing ISTEA provision relating to recreational trails is repealed. The Secretary is to encourage the use of youth conservation or service corps in completing appropriate trails projects. The 30 percent figures under the Assured Access to Funds requirement and the 40 percent figure under the Diversified Trail Use requirement are minimum requirements that could be exceeded. States should not treat their projects as if they were meeting three mutually exclusive categories. There can be overlap between the Diversified Trail use requirement and the Assured Access requirements. There should be diversified motorized use projects, diversified non-motorized use projects, and projects that benefit both motorized and non- motorized use simultaneously. Senate amendment Section 1107 continues the existing Recreational Trails Program. Under this provision, the Recreational Trails Program is to be funded through contract authority from the Highway Trust Fund. The annual contract authority is as follows: $17,000,000 for fiscal year 1998; $20,000,000 for fiscal year 1999; $22,000,000 for fiscal year 2000; $23,000,000 for fiscal year 2001; $24,000,000 for fiscal year 2002; and $25,000,000 for fiscal year 2003. The provision of current law relating to the National Recreational Trails funding is repealed. The Federal share payable for projects under the Recreational Trails Program is increased from 50 percent to 80 percent. In addition to the Department of Transportation, other Federal agencies may contribute additional funds for a Recreational Trails project. However, the Department of Transportation share for any individual project may not exceed 80 percent; the combined share of all Federal agencies may not exceed 95 percent. The Federal share for this program is consistent with the Federal share available for other Federal-aid projects. This section retains the current requirement regarding the States' use of annual apportionments: at least 30 percent of Federal funds must be used to facilitate non-motorized recreation; another 30 percent of the funds must be used for motorized recreational purposes. A State must use the remaining amount of funds for diverse recreational purposes, including both motorized and nonmotorized recreational trail use. Experience with implementing Recreational Trail projects in the past has shown that project sponsors for nonmotorized trail projects were significantly disadvantaged in meeting the higher non-Federal matching requirements. To the extent practicable and consistent with other requirements, States are to give consideration to projects that benefit the natural environment or mitigate and minimize impacts to the environment. The amount that the Secretary may deduct to pay the costs for administration of the program is reduced from three percent to one percent. Conference substitute The Conference substitute adopts the Senate language with several modifications. The substitute clarifies that a State may use funds appropriated under this section for construction of new trails only if the construction is permissible under some other law or is otherwise required by a statewide comprehensive outdoor recreational plan in effect required by the Land and Water Conservation Found Act. It places a cap on the amount that a state can expend on educational programs to promote safety and environmental protection at 5% of annual apportionments. The substitute provision also modifies existing law to exclude all small states with a total land area of less than 3,500,000 acres from the requirement to expend annual apportionments for trails and trails related projects in a ratio of 40% diverse use, 30% motorized use and 30% nonmotorized use. The substitute further provides that a State trail advisory committee may waive the trails diversity requirement if the State notifies the Secretary that the State does not have sufficient projects to meet the diversity requirements. It adds a new section which allows States to make grants under section 104(h) to private organizations, municipal, county, state and Federal governmental entities after considering guidance from the recreational advisory committee for uses consistent with this section. Termination of Recreational Trails Advisory Committee House bill Subsection 114(d) terminates the Recreational Trail Advisory Committee by the end of fiscal year 2000. Senate amendment Section 1208(c) terminates the National Recreational Trails Advisory Committee as soon as is practicable. The Advisory Committee was established in ISTEA and tasked to (1) review the allocation and utilization of moneys under the Recreational Trails program; (2) establish review criteria for trail-side and trail-head facilities; and (3) recommend changes in Federal policy to advance the purposes of the program. The Advisory Committee has completed these tasks and is no longer necessary. This provision does not affect the State advisory committees that are responsible for implementing the Recreational Trails Program. Conference substitute The Conference adopts the House provision. Encouragement of Youth Conservation Corps House bill Subsection 114(c) encourages the use of qualified youth conservation or service corps to construct and maintain recreational trail projects. Senate amendment The Senate amendment contains no comparable provision. Conference substitute The Conference adopts the House provision. Value Pricing Pilot Program House bill Section 119 establishes a variable pricing pilot program. The Secretary may enter into cooperative agreements with up to 15 States to conduct and monitor the pilot projects. The Federal share for a pilot program is 80 percent of the total cost of the program, although the Federal share for any portion of a project may be up to 100 percent. The provision authorizes full Federal participation in the start-up, development, and pre-implementation costs associated with a pilot program for up to three years. Single occupancy vehicles that are part of a pilot program may operate in high occupancy vehicle (HOV) lanes. Pilot programs must include an analysis of how the program affects low income drivers. Senate amendment Section 1108 renames the congestion pricing pilot program as the value pricing pilot program and codifies the program in title 23, United States Code. A number of States and local governments have used funds provided under ISTEA to complete feasibility studies and implementation of value pricing projects. This section provides funding and additional flexibility to allow States to continue to implement these projects. In addition, it expands the program, increasing the number of pilot programs eligible for funding from five to 15, and lifting the restriction that only three projects can be conducted on the Interstate System. Funds available under this section may be used for all pre-implementation and design costs to give States more flexibility to study options for different types of value pricing projects. This section also includes an exemption from the HOV requirement of Section 102(b) of title 23 to permit single occupancy vehicles to operate in HOV lanes if the vehicles are part of a value pricing program. It is expected that each value pricing project will include a thorough evaluation of the project's effects, including its impacts on congestion, air quality, transit use, and other social and economic effects. Conference substitute The Conference adopts the Senate provision with two modifications. First, it prohibits federal funding of pre- implementation, development and startup costs after three years as provided in the House bill. Second, it requires each pilot program to include, where appropriate, an analysis of the impact of the program on low income drivers. Highway Use Tax Evasion Projects House bill Section 122 amends section 1040 to specify that all funds provided for this program are [[Page H3900]] contract authority. It requires funding provided under this section to be used to create an automated fuel reporting system to improve the tracking of motor fuels subject to Federal and state excuse taxes. Senate amendment Section 1109 eliminates two obsolete tax evasion study requirements in current law. It eliminates the annual report on motor fuel tax enforcement activities and the report on the feasibility and desirability of using dye and markers to aid in motor fuel tax enforcement activities. This section codifies and expands the successful tax evasion program in section 1040 of ISTEA. It provides $5 million in contract authority for each of fiscal years 1998 through 2003 to continue joint FHWA-IRS-State motor fuel tax compliance projects across the Nation, as established in section 1040 of ISTEA. All costs of tax evasion projects are to be paid by the Federal Government. This section also authorizes an additional $8 million for the Secretary to complete the development of an excise fuel reporting system, as well as $2 million annually for the operation and maintenance of the system. This system will provide essential information regarding data on import and refinery production of motor fuel to compare with terminal fuel receipts and fuel deliveries. This new program, along with the continuing program, is necessary to help ensure that the successful, coordinated regional and national approach to combat fuel tax fraud can continue and improve. The Conference adopts the Senate provision with one modification. The substitute expressly provides the excise fuel reporting system with contract authority. Bicycle Transportation and Pedestrian Walkways House bill Section 137 amends section 217 of title 23 to make a number of clarifying changes and to require that bicyclists and pedestrians be included in the planning process and to allow electric bicycles on trails when State or local regulations permit. The provision clarifies the requirements under section 109(n) of title 23 related to the impact on non- motorized transportation of a Federal-aid highway project. It also requires that bicycle safety be taken into account when States undertake rail-highway crossing projects under section 130 of the title 23. Such safety devices shall include installation and maintenance of audible traffic signal and audible signs. Senate amendment Section 1110 builds on ISTEA by expanding the amount of funds available to be used to encourage bicycling and walking as alternative modes of transportation. This provision amends section 217 of title 23, United States Code, to include the construction of pedestrian walkways as an eligible use of a State's National Highway System (NHS) apportionments under the same criteria by which bicycle transportation facilities currently are eligible. This section eliminates the restriction on the use of NHS funds for the construction of bicycle transportation facilities on land adjacent to the Interstate System and amends current law to allow the safe accommodation of bicycles on highway bridges located on fully access-controlled highways, if the bridge is being replaced or rehabilitated with Federal funds. The Department is encouraged to work with the States to ensure that bicycling and pedestrian interests are represented in State and MPO decisionmaking. The planning provisions in sections 134 and 135 of title 23 are amended to provide that bicyclists and pedestrians shall be given consideration in the comprehensive Statewide and metropolitan planning processes, and that the inclusion of bicycle and pedestrian facilities shall be considered, where appropriate and permitted, in conjunction with all new construction and reconstruction of transportation facilities. Conference substitute The Conference adopts the House provision with modifications. The substitute clarifies that safety devices such as installation of audible traffic signals and audible signs shall be considered where appropriate. It also retains current law section 217(i) which clarifies that eligible bicycle projects must be principally for transportation, rather than recreation, purposes. Highway and Street Design Standards House bill Subsection 137(d) requires a study of highway and street design standards to accommodate bicycles. Senate amendment The Senate amendment contains no comparable provision. Conference substitute The Conference does not include a study requirement. Design Guidance House bill Subsection 137(f) requires the Department of Transportation, in cooperation with the American Association of State Highway and Transportation Officials (AASHTO), the Institute of Transportation Engineers, and other interested organizations, to issue within one year design guidance to accommodate bicycle and pedestrian travel. Senate amendment The Senate amendment contains no comparable provision. Conference substitute The Conference adopts the House provision with two modifications. First, the substitute clarifies that the guidance must include recommendations to amend and update AASHTO policies relating to highway and street design standards. Second, it extends the deadline for the issuance of the guidance to 18 months. Disadvantaged Business Enterprises House bill Subsection 102(b) continues the Disadvantaged Business Enterprise provisions. It also allows an entity or person that is prevented under Federal court order from complying with the DBE provision to continue to be eligible to receive Federal funds. The Comptroller General is required to conduct a study of the DBE program within three years of enacted of this act. Recent court decisions have established new standards for review of the constitutionality of programs such as the DBE provisions enacted in prior surface transportation acts and that the courts are now determining whether the DBE programs comply with those standards. The Department of Transportation is reviewing the DBE program in light of recent court rulings and has proposed new regulations to ensure that the program withstands constitutional muster. Section 102(b) of the reported bill makes no changes to these provisions preferring to let the courts resolve these issues. However, the Committee will continue to monitor DOT's administration of this program and gage the impact of court decisions on these provisions. This provision is intended to ensure that grant recipients under this Act will continue to be eligible to continue to receive federal funds even if a federal court has entered a final order finding the DBE program to be unconstitutional. The possibility of legal challenges that may affect a limited number of States or transit agencies. This provision is intended to ensure that any affected recipients will not be unfairly penalized for complying with a final order of a Federal court finding the DBE program to be unconstitutional. Senate amendment Section 1111 continues the provisions in current law regarding the disadvantaged businesses enterprise (DBE) program. The DBE program, which originated in the Surface Transportation Assistance Act of 1982, requires that 10 percent of the funds provided under title I of this Act be expended with small business concerns owned and controlled by socially and economically disadvantaged individuals, except to the extent that the Secretary of Transportation determines otherwise. In 1995, the Supreme Court decided Adarand v Pena, which heightened the standard of judicial review applicable to Federal affirmative action programs. The case involved a Caucasian subcontractor who submitted a low bid on a Federal lands highway construction contract, but lost to a company that was certified as ``disadvantaged.'' Adarand filed suit, alleging that he was denied the equal protection guaranteed by the Fifth amendment. The Court agreed in a 5-4 decision that Federal race classifications, such as the DBE program, must be subject to strict scrutiny. In other words, the program must: (1) serve a compelling government interest, and (2) be narrowly tailored to address that compelling interest, which in this case is fighting discrimination. It is important to note that the Supreme Court did not strike down the DBE program or any other Federal affirmative action program. That means that if the program in question meets the new test outlined by the Court, it is Constitutional and may continue to exist. In the case of the DBE program, the Department of Transportation has determined that the Constitutional concerns can be addressed through changes in the Department's regulations. To that end, the Department has proposed a number of regulations intended to address the ``narrow tailoring'' requirements of ``strict scrutiny'' by (1) giving priority to race-neutral measures in meeting program goals, and (2) limiting the potential adverse effects of the program on other parties. Conference substitute The Conference adopts the Senate provision. Federal Share Payable House bill Section 134(c) technically changes to the Federal share on certain projects from a strict percentage to a limitation. This will allow for an increased non-Federal share at a State's option. It does not allow the Secretary to impose a lower match. Senate amendment Section 1112(a) amends section 120 of title 23, United States Code, to allow a State, if it chooses, to reduce the Federal share of a Federal-aid highway project. This change will give States the flexibility to carry out more projects than would be possible with a straight 20 percent non-Federal share. Nothing in this section is intended to require a State to lower the Federal share payable on any project funded under this title. Conference substitute The Conference adopts the Senate provision. Increased Federal Share for Transit Vehicles House bill Subsection 120(a) amends section 120 of title 23 to provide that the Federal share of [[Page H3901]] priority control systems for transit vehicles may be up to 100 percent. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference adopts the House provision. Credit for Non-Federal Share House bill Subsection 120(b) allows States to apply toll revenues used for specified capital improvements to their non-Federal share requirement for title 23 projects and for chapter 53 of title 49. To receive this credit, a State must maintain its average non-Federal transportation capital expenditure for the preceding three fiscal years. Senate amendment Section 1112(a)(2) codifies a provision established in ISTEA which allows States to apply toll revenues used for specified capital improvements to their non-Federal share requirement for title 23 projects. To receive this credit, a State must meet a maintenance of effort test, and therefore, must maintain its average non-Federal transportation capital expenditure for the preceding three fiscal years. The provision allows a State to drop a ``high year'' from the three year maintenance of effort test, if that year is at least 30 percent greater than the average for the two other preceding years. Conference substitute The Conference adopts the House provisions with modifications. The substitute language includes the exception clause for the maintenance of effort test provided for in the Senate language. In addition, the substitute language clarifies that payments on transportation-related bonds are considered a ``transportation expenditure''. Toll Road Credits House bill Subsection 133(e) clarifies that private entity expenditures for construction of specific toll roads in Southern California may be credited to the State's non- Federal share. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference adopts the House provision with modifications. The substitute amends section 120 of title 23 and provides that private entity expenditures used to construct toll roads open to traffic may be used toward the matching share in all States. Interstate Reconstruction Pilot Program House bill Subsection 120(c) creates an Interstate System Reconstruction and Rehabilitation Pilot Program. This program allows up to three facilities to be tolled, provided the toll revenues are used to improve that facility. Any State wishing to participate in the pilot program must enter into an agreement with the Secretary to ensure that no toll revenues are diverted to another facility or purpose. The provision specifies eligibility and selection criteria. Senate amendment The Senate bill contains no comparable provision. Conference substitute The conference adopted the House provision to allow a State to toll segments of the Interstate system. The provision allows up to three states to participate provided that revenues generated from the tolls will be used to reconstruct, improve or maintain the facility. The conferees understand that certain segments of the Interstate require substantial maintenance and rehabilitation funding above available resources, such as Interstate 80 in Pennsylvania. Technical Amendment--Federal Share Payable House bill Paragraph 104(e)(2) provides a technical conforming amendment to section 120. Senate amendment Paragraph 1112(b)(1) provides a technical amendment to 23 U.S.C. 120 concerning the Federal share payable for title 23 projects to conform subsections 120(a) and (b) to subsection 120(i), which allows the State to determine a lower Federal share. Conference substitute The Conference adopts the House provision. Technical Amendment--Federal Share Payable House bill The House bill contains no comparable provision. Senate amendment Paragraph 1112(b)(2) provides a technical amendment to 23 U.S.C. 120 to conform this subsection to 23 U.S.C. 121, relating to payments made to States for the cost of construction. Conference substitute The Conference adopts the Senate provision. Study: Highway Economic Requirement House bill The House bill contains no comparable provision. Senate amendment Subsection 1113(a) requires the General Accounting Office (GAO) to report to Congress on the Department's methodology for determining highway needs using the Highway Economic Requirement System (HERS), a computer program developed to use economic criteria and engineering criteria in estimating highway investment requirements. The GAO is required to provide Congress with an assessment of the extent to which the model is useful in estimating an optimal level of highway infrastructure investment three years after this Act is enacted. Conference substitute The Conference adopts the Senate provision. Study: International Roughness Index House bill The House bill contains no comparable provision. Senate amendment Subsection 1113(b) requires the Comptroller General to submit a report to the Congress on the International Roughness Index (IRI), an index that is being used to measure the pavement quality of the Federal-aid highway system. The IRI is a data input used in the HERS model. Concerns have been raised as to the reliability of the IRI measurement across different manufacturers and types of pavements and this study shall indicate the extent to which the IRI measurement is reliable. Conference substitute The Conference adopts the Senate provision. Report: Rates of Obligation House bill The House bill contains no comparable provision. Senate amendment Subsection 1113(c) requires the Secretary to report annually on the rates of obligation of funds apportioned under Federal-aid highway programs. The report shall include information regarding funding category or subcategory, type of improvement, and substrate geographic area. Conference substitute The Conference adopts the Senate provision with a modification to clarify that the report shall include all final apportioned programs. 109 Study: Procurement Practices House bill Subsection 139(b) requires the GAO to evaluate procurement practices and project delivery. The study shall access the impact a utility company's failure to relocate in a timely manner has on the delivery and cost of Federal-aid highway and bridge projects. Senate amendment Subsection 1113(d) requires the General Accounting Office (GAO) to conduct a study on Federal-aid highway procurement practices and project delivery. The study shall access the impact that a utility company's failure to relocate in a timely manner has on the delivery and cost of Federal-aid highway and bridge projects. Conference substitute The Conference adopts the House provision. Definitions House bill Section 143 organizes the definitions for title 23 alphabetically. Senate amendment Section 1114 provides definitions for the terms ``Federal- aid highway funds'' and ``Federal-aid highway program.'' These phrases are used throughout title 23, but are not defined in current law. The addition of these clarifying definitions is not intended to change the implementation of any section under current law. The section reorganizes the Definitions for title 23 alphabetically. Conference substitute Unresolved. Definitions: Enhancements House bill Section 143 amends the definition of a transportation enhancement activity. It specifies that a transportation enhancement activity must have a direct link to surface transportation. It also expands the definition to allow the removal of graffiti and litter among the list of eligible activities, as well as environmental mitigation to reduce vehicle-caused wildlife mortality while maintaining habitat connectivity. In addition, it adds construction of tourist and welcome centers as an eligible activity. Senate amendment Subsection 1223(d) amends subsection 101(a) by providing that tourist and welcome center facilities associated with scenic or historic highway programs are eligible for funding under the enhancement program. Conference substitute The Conference adopts the House provision with modifications. The substitute requires that transportation enhancement activities have a relationship, rather than a direct link, to surface transportation. It does not include graffiti and litter removal as eligible activities. It retains the Senate provision regarding eligibility of tourist and welcome centers. In order to be eligible under the enhancement program, the tourist or welcome center (whether a new facility or existing facility) does not have to be on a designated scenic or historic byway, but there must be a clear link to scenic or historical sites. It adds transportation-related museums as an eligible activity. [[Page H3902]] Definitions: Operational Improvement House bill Subsection 143 of the House bill provides technical amendments to, but does not change the definition of operational improvement from current law. Senate amendment This section revises the definition of ``operational improvement'' in section 101(a) of title 23, United States Code, to include the installation, operation, or maintenance of certain Intelligent Transportation Systems infrastructure projects. The installation, operation or maintenance of communications systems, roadway weather information and prediction systems, and other improvements designated by the Secretary that enhance roadway safety during adverse weather are also incorporated into the revised definition. Conference substitute The Conference adopts the House provision. Hazard Elimination House bill Subsection 143 of the House bill provides technical amendment to, but does not change this definition from current law. Senate amendment Subparagraph 1404(b)(1)(A) amends the definition of ``highway safety improvement project'' by deleting the reference to ``highway''. Conference substitute The Conference adopts the House provision with a modification. The reference to ``highway'' is deleted. In carrying out this provision, States should minimize any negative impact on safety and access for bicyclists and pedestrians in accordance with Section 217 of title 23, U.S.C. Project Approval and Oversight House bill Section 143 amends section 101 of title 23 by providing a definition for ``project agreement.'' It is defined as the formal instrument required under the project agreement provision in title 23. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference adopts the House provision with a modification. It provides a conforming amendment to recognize that section 110 regarding project agreements is repealed and the portion of the provision relating to project agreements is moved to section 106. Cooperative Federal Lands Program House bill The House bill contains no comparable provision. Senate amendment Section 1115 establishes a new section 207 in chapter 2 of title 23, United States Code, which provides a funding source for public roads or bridges owned by States or their political subdivisions that cross, are adjacent to, or provide access to, Federal lands and Indian reservations (including reservoirs owned by the Army Corps of Engineers). The purpose of this program is to supplement the efforts of the Federal government in developing and maintaining roads or bridges that serve federally owned land and Indian reservations (including reservoirs owned by the Army Corps of Engineers). The Cooperative Federal Lands Transportation Program ensures that funding will be provided for projects in States where greater than 4.5 percent of the land within the state borders is held in trust or owned by the Federal government. Funds are provided directly to these States for projects that provide access to Federal lands and Indian reservations. This section provides $74 million in contract authority per year from the Highway Trust Fund. Conference substitute The Conference does not adopt the Senate provision, but transfers the $74 million in contract authority to the Federal Lands Highway Program. Bridge Set Aside for New Jersey House bill The House bill contains no comparable provision. Senate amendment The Secretary is required to set-aside $20 million each fiscal year from the I-4R program and allocate it to any State that: (1) receives less in the bridge apportionment factors used in the Interstate and National Highway System program and the Surface Transportation Program compared with the funds a State received under the bridge program in 1997; and (2) was apportioned at least $125 million in 1997. These funds shall be available for highway bridge projects. States that have transferred more than 10 percent of the funds apportioned under the bridge program in 1995 through 1997 to other Federal-aid transportation projects are not eligible for an allocation from this program. Conference substitute The Conference does not adopt the Senate provision. Bridge Set Aside Missouri House bill The House bill contains no comparable provision. Senate amendment The Secretary is required to set-aside $15 million each fiscal year from the I-4R program and allocate it to any State whose bridges have an average life of at least 46 years as of the date of enactment of this Act. States that have transferred more than 10 percent of the funds apportioned under the bridge program in 1995 through 1997 to other Federal-aid transportation projects are not eligible for an allocation from this program. Conference substitute The Conference does not adopt the Senate provision. Bridge Set Aside Arkansas House bill The House bill contains no comparable provision. Senate amendment The Secretary is required to allocate $10 million to States that meet specific per capita personal income and Federal-aid Highway apportionment criteria from the I-4R program. Conference substitute The Conference does not adopt the Senate provision. National Highway System Components House bill Subsection 106(c) modifies the National Highway System to include intermodal connectors on the map submitted to Congress by the Secretary on May 24, 1996. Senate amendment Section 1121 establishes the National Highway System (NHS) as those routes and transportation facilities depicted on maps submitted by the Secretary with the report ``Pulling Together: The National Highway System and its Connections to Major Terminals.'' Conference substitute The Conference adopts the Senate provision with minor technical clarifications. Study: Intermodal Freight Connectors House bill Subsection 106(h) directs the Secretary to report to Congress not later than 24 months after the date of enactment of this Act on the condition of and the improvements made to connectors on the National Highway System that serve intermodal freight transportation facilities. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference adopts the House provision with modifications to clarify that the purpose of the report is to identify impediments to improving intermodal connectors including impediments related to the planning process, availability of funding, and other issues identified by the Secretary. National Highway System Sign Competition House bill Subsection 106(h) directs the Secretary to conduct a national competition among children under the age of 14 to design a logo sign for the National Highway System. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference does not adopt the House provision. Safety Belt Extension, NH House bill The House bill contains no comparable provision. Senate amendment Section 1124 modifies section 355 of the National Highway System Designation Act of 1995 to permit New Hampshire to meet the safety belt use law required under section 153 of title 49, United States Code, through a performance requirement. Through the end of fiscal year 2000, New Hampshire is deemed to have met the safety belt use requirements of section 153 upon certification by the Secretary that the State has achieved: (1) a safety belt use rate in each of fiscal years 1997 through 2000 of not less than 50 percent; and (2) a safety belt use rate in each succeeding fiscal year thereafter of not less than the national average safety belt use rate. Conference substitute The Conference adopts the Senate provision with a minor technical amendment. Study: Uniformed Police Officers House bill The House bill contains no comparable provision. Senate amendment Section 1126 requires the Secretary of Transportation to conduct a study on the extent and effectiveness of the use by various States of uniformed police officers on Federal-aid highway construction projects. Some States use police officers extensively on their highway construction projects, while other States are virtually no police officers for work zone traffic control. Work zone safety has been a high priority issue for the Federal Highway Administration (FHWA), traffic engineering professionals, and highway agencies. This section requires the Department of Transportation to submit a report to Congress on the results of the study not later than 2 years after the effective date of this section. Conference substitute The Conference adopts the Senate provision with a modification to require that the study be conducted in consultation with law enforcement organizations. [[Page H3903]] Contracting for Engineering and Design Services House bill Section 140 amends section 112 of title 23 clarifies that quality based selection process requirements for design and engineering services and other contracting procedures will apply unless a State has in the past adopted alternative procedures to increase competition. Requirements must be met for any phase of a project funded in whole or in part with Federal funds. Senate amendment This provision amends section 112(b)(2) of title 23 of the United States Code to promote competition and provide the greatest value for Federal aid system projects. It clarifies that the time period for states to have legislatively enacted alternative requirements to Qualifications Based Selection (QBS) Procedures for obtaining engineering and design services has ended. Additionally, it requires that the Federal Acquisition Regulations (FAR) be used for consistent and equitable contract administration, accounting, and audits while providing for the use of FAR QBS simplified acquisition procedures for contracts under $100,000. Finally, clarification is provided that requires the Secretary to establish a certification procedure to ensure that any legislation enacted by a State since November 28, 1995 to exercise its option complies with the time frames and substantive criteria contained in Section 307 of PL 104-59. Conference substitute The Conference adopts a substitute provision. Ambassador Bridge, Michigan House Bill Subsection 133(a) makes the facilities necessary to connect the Ambassador Bridge in Detroit, Michigan to the Interstate System eligible to receive funds apportioned under the National Highway System and the Surface Transportation program. Senate amendment Section 1129 provides eligibility for the Ambassador Bridge in Detroit, Michigan under the surface transportation program and the National Highway System program. Conference substitute The Conference adopts the Senate provision. Cuyahoga River Bridge House bill Subsection 113(b) makes the Cuyahoga River in Ohio eligible to receive funds apportioned under the congestion mitigation and air quality improvement program. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference adopts the House bill with a modification. The bridge is eligible to receive funds from the surface transportation program. National Defense Highway House bill Section 131 authorizes an amount not to exceed $16 million per year for fiscal years 1998 through 2003 from the Interstate Maintenance component for the reconstruction of a highway or portion of highway outside of the United States that is important to national defense. Senate amendment Section 1131 authorizes an amount not to exceed $16 million per year for fiscal years 1998 through 2003 from the Interstate Maintenance component for the reconstruction of a highway or portion of highway outside of the United States that is important to national defense. Conference substitute The Conference adopts the provision. High Risk Road Safety Improvement Program Senate bill The Senate bill contains no comparable provision. House bill Section 110 creates a new program within the Federal-aid highway program to fund construction and operational projects that improve the safety of high risk roads. States are to allocate funds under this program to those projects that have the highest benefit. Up to fifty percent of funds under this program can be transferred to other Federal-aid highway programs. Conference substitute The Conference does not adopt the House provision. Road Safety Awareness and Improvement Program House bill Subsection 110(c) authorizes a roadway safety awareness and improvement program funded from the high risk road safety program. The activities of the program should be carried out cooperatively between the Department of Transportation, States, and other safety organizations. Senate amendment The Senate bill contains no comparable provision. Conference Substitute The Conference does not adopt the House provision. High Cost Interstate Program Senate bill The Senate bill contains no comparable provision. House bill Section 113 establishes a new program to fund major reconstruction or improvement projects on the Interstate system. In order to be eligible, a project must cost over $200 million or cost more than 50% of a State's Federal-aid highway apportionments; it must be ready to go to construction; the State must agree to not transfer funds apportioned under the Interstate Maintenance Program; and the funds must be obligated within one year. Two thirds of the funds are allocated to the States in the ratio that each State's cost of eligible projects bear to the total national cost of eligible projects. For the years 1998 through 2003, however, those funds are to be distributed based on the Interstate Maintenance Program formula. The remainder of the funds are allocated on a discretionary basis. If funds cannot be used in any given fiscal year, the extra funds are apportioned to all States as Interstate Maintenance funds. Projects must be included within the planning process. The Secretary of Transportation is required to report on the expected future need to reconstruct the Interstate System and to recommend methods for apportioning the funds. Conference Substitute The Conference does not adopt the House provision. Infrastructure Awareness Program Senate bill The Senate bill contains no comparable provision. House bill Section 132(a) authorizes the Secretary to fund the production of a documentary about infrastructure to promote infrastructure awareness. A total of $1 million in contract authority is authorized for each of the fiscal years 1998 through 2000 from the Highway Trust Fund, other than the Mass Transit Account. Conference substitute The Conference adopts the House provision with modifications. The substitute states that a total of 40 percent of the total project of $4.8 million will be provided from the Highway Trust Fund and the remaining 60 percent is required to be provided by the private sector. Credit is given for funds received to date. The substitute provides a total of $1 million for each of the fiscal years 1998 and 1999, and $.88 million in 2000 from the Highway Trust Fund, other than the Mass Transit Account. New York Avenue Authority, DC Senate bill The Senate bill contains no comparable provision. House bill Section 142 establishes a New York Avenue Authority to develop an improvement plan for the New York Avenue Corridor in the District of Columbia. The authority is eligible to receive funding under the National Corridor Planning and Development program. Conference substitute The Conference does not adopt the House provision. Administrative Takedown Senate bill Section 1201 reduces that administrative subsection 104(a) of title 23, United States Code, which requires the Secretary to deduct funds from certain Federal-aid highway apportionments from the current 3\3/4\ percent to an amount not to exceed 1\1/2\ percent administer the Federal-aid highway program. The reduction reflects that this Act provides non-administrative items, such as research and intelligent transportation system activities that were formerly funded from the takedown with separate funding elsewhere. This modification in the administrative takedown will provide a clear distinction between the Department's administrative expenses and its research activities and other expenses. House bill Subsection 104(a) allows the Secretary to deduct from sums authorized to be apportioned for expenditures on the Federal- aid highway program for Administrative expenses a sum not to exceed 1 percent of all sums so apportioned for the Federal- aid highway program. Conference substitute The Conference adopts the Senate bill. Real Property Acquisition Senate bill Section 1201 amends sections 108 and 323 of title 23, United States Code, to expand the flexibility provided to State and local governments to compete for land resources. It provides for the advanced acquisition of real property not only for highway projects, but for all transportation improvements under title 23. This section removes restrictive language and outdated programs, revises language, and adds opportunities for State and local governments to utilize early property acquisition when necessary, while retaining maximum flexibility to leverage the use of Federal funds. The provision provides an alternative means of leveraging Federal funds apportioned to each State by providing a credit based on the value of publicly-owned lands [[Page H3904]] incorporated within a federally-funded project. This provision is consistent with the credits already permitted for donated real property and services. The provisions added by this section expand the choices available to State and local governments in fashioning financial strategies to best serve their transportation objectives. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with a modification to clarify that costs of services are not eligible as a credit for non-federal share. Payments to States for Construction Senate bill Section 1204 amends section 121 of title 23, United States Code to remove a restriction that applies the Federal/non- Federal matching share requirement to each payment a State receives. The revised section 121 makes the requirement applicable to total project costs rather than to individual voucher payments. The increased flexibility provided by these changes will result in a simplified program that is easier for State departments of transportation to administer. The changes recognize that the important restriction is that the total project meets the Federal share requirement. The changes also make the Federal-aid highway program more compatible with other Federal programs, particularly the Federal mass transportation program, where projects are often administered jointly by FHWA and Federal Transit Administration. House bill Subsection 134(d) amends title 23 to remove a restriction which applies the Federal/non-Federal matching rate to each payment that a State receives. This amendment will make the Federal-aid highway more like other Federal programs, including the Transit program, hence giving the States greater flexibility in managing their funds. Conference substitute The Conference adopts the House provision with a modification. This provision is retained as separate section as in the Senate bill. Proceeds from the Sale or Lease of Real Property Senate bill Current section 156 of title 23, United States Code, requires States to charge fair market value for the use of airspace acquired in connection with a federally funded project. Section 1205 expands the requirement in section 156 to apply to the net income generated by a State's lease, sale, or other use of all real property acquired with Federal financial assistance. The revised section applies the same standard to all real property interests acquired with Federal-aid highway funds. As in current law, the Secretary may grant exceptions for social, environmental, or economic purposes. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with the inclusion of clarifying report language. The purpose of this exception retained in this provision is to give the States (with the Secretary's approval) the flexibility to charge less than fair market value for lands bought with Highway Trust Fund dollars if the lands, once sold or leased, would be used for some purpose of public benefit that would outweigh the general desire to receive fair market value for the property, such as if the lands would be used as parkland or as a recreation area. Metric Conversion at the State Option Senate bill Section 1206 amends section 205 of the National Highway System Designation Act of 1995 which states that the Secretary shall not require States to use or plan to use the metric system before September 30, 2000. This provision allows States to choose when and if to implement the metric system with respect to designing, advertising, or preparing plans, specifications, timetables, or other documents, for a Federal-aid highway project. This section does not require any State to modify its current use of the metric system for Federal-aid highway projects. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Report on Obligations Senate bill Section 1207 amends section 104 of title 23, United States Code, to require the Secretary to submit to Congress an annual, rather than monthly, report on States' obligations for Federal-aid highways, highway safety construction programs, and unobligated balances. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Termination of Right-of-Way Revolving Fund Senate bill Subsection 1208(a) terminates the right-of-way revolving fund. The right-of-way revolving fund is revised in section 108(c) of title 23, to provide an expiration and closeout period for obligations already authorized from the fund. This program was terminated as a revolving loan fund because of the new rules required of all credit programs in the Credit Reform Act of 1990. Credits based on conversion or reimbursements are to be applied to the Highway Trust Fund rather than to the revolving fund. Twenty-three States currently have active right-of-way revolving fund projects. This section provides for a 20-year close out period from the date that right-of-way funds were advanced to give these States sufficient time to complete these unfinished projects. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Termination of Pilot Toll Collection Program Senate bill Subsection 1208(b) terminates a tolling pilot program that has accomplished its intended purpose. Pilot toll agreements that were executed under subsection 129(k) of title 23 are still valid. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Termination of the Bridge Commission Senate bill 1208(d) repeals the 1962 Bridge Commission Act. Public Law 87-441 relates to bridge commissions and authorities created by Act of Congress. It provides for Federal approval of such commissions' memberships and requires annual audits. A commission ceases to exist by transferring ownership of the bridge to the States. Initially, five bridge commissions were subject to the act. Today, only one commission remains, the White County Bridge Commission, which operates the New Harmony Bridge across the Wabash River between Indiana and Illinois. While under this act, the FHWA has the authority to appoint commissioners and review the commission's financial operations, these actions could be administered more effectively and efficiently at the State or local level. This provision removes this unnecessary Federal oversight of the White County Bridge Commission. House bill Subsection 134(h) repeals a requirement that the Federal government oversee certain bridge commissions created by Congress in Public Law 87-441. Such duties would be assumed by State and local governments. Conference substitute The Conference finds the provisions in both the House and Senate bills to be substantially equivalent. Transfer of Highway Transit Funds Senate bill Section 122 adds a new subsection to section 104 of title 23, United States Code, to provide for the program-wide, rather than project-by-project, transfer and administration of transit funds made available for highway projects and highway funds made available for transit projects. This revision will streamline the administration of highway and transit funds by State departments of transportation. This provision also requires the Secretary to administer funds made available under title 23 or chapter 53 of title 49 and transferred to Amtrak in accordance with Subtitle V of title 49. Funds made available under title 23 or chapter 53 of title 49 and transferred to other eligible passenger rail projects and activities shall be administered as the Secretary determines appropriate. The non-Federal share provisions in title 23 or chapter 53 of title 49 will continue to apply to the transferred funds. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provisions with a modification. Amtrak transferability is not adopted. Project Approval and Oversight Senate bill Section 1222 amends section 106 of title 23, United States Code, which addresses Federal and State responsibilities for surface transportation projects. This section permits the Secretary to discharge to the States with their approval the Secretary's responsibilities under title 23 for the design, plans, specifications, estimates, contract awards, and inspection of projects on the National Highway System (NHS). Under current law, States voluntarily oversee such activities for projects carried out with Surface Transportation Program (STP) funds, but not for NHS projects. House bill Subsection 501(a) consolidates and codifies the current practices used by the Secretary to approve and oversee Federal-aid highway projects and further streamlines that process. This section requires that for projects on the NHS (including the Interstate system), the Secretary and each State will enter into an agreement as to the appropriate level of [[Page H3905]] Federal oversight. The Secretary may not assume a greater degree of responsibility than under current law. For all non- NHS projects, the States will assume all of the Secretary's current responsibilities for design, plans, specifications, estimates, the awarding of contracts, and the inspection of projects. For projects on the NHS but not on the Interstate system, then a State shall assume all of the Secretary's current responsibilities for design, plans, specifications, estimates, the awarding of contracts, and the inspection of projects unless the State or the Secretary determines that such assumption is not appropriate. Conference substitute The Conference adopts a substitute provision. The substitute requires that the State shall assume the Secretary's responsibilities under this title for design, plans, specifications, estimates, contract awards and inspection of projects unless the States determines otherwise. In addition, the State may assume responsibility for projects on the NHS but not on the Interstate system unless the State or Secretary determines otherwise. In any case where States must meet surface quality regulations set forth by the Federal Highway Administration, they may look for leadership to a private Midwestern engineering institute which has served as a State certifying contractor for the past eleven years. The FHWA may work with this institution in carrying out this National certification program and use the existing expertise in the area. Financial Plan Senate bill Section 1222(f) requires the Secretary to prepare a financial plan for any projects with an estimated total cost of $1 billion or more. House bill Section 504 requires the preparation of a financial plan for any highway or transit project costing over $1 billion and that is proposed to be funded with Federal funds. Conference substitute The Conference adopts the Senate provisions with a modification. The provision is codified in title 23 and title 49. Standards Senate bill Subsection 1222(b) eliminates the requirement that the Secretary of Transportation issue Interstate maintenance guidelines and adds that safety considerations of a project may be met by phase construction. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provisions with a modification. The substitute language clarifies that the safety considerations are to be consistent with an operative safety management system or a statewide transportation improvement program approved by the Secretary. Repeal of Sections 100 and 117 Senate bill Section 1222(c) repeals sections 110 and 117. House bill Section 501 repeals sections 110 and 117. Conference substitute The Conference finds provisions in both the House and Senate bills to be substantially equivalent. Surface Transportation Innovative Financing Senate bill Subsection 1223(a) codifies the Department of Transportation's current administrative policy regarding innovative mechanisms applicable to transportation enhancement projects. It gives States additional flexibility by allowing them to calculate non-Federal share for enhancements projects in several ways: on a project, multiple project, or program basis. A State's average annual non- Federal share of transportation enhancement projects must be at least 20 percent; however, because of the new provision, it is feasible for a single project to have a 100 percent Federal share. In addition, this section also reduces the current quarterly, project-by-project State certification and notification requirements to annual, program-wide approval of each State's project agreement. The current requirement that payments made by the Secretary to the States under section 133 could not exceed the Federal share of costs incurred as of the date the State requested payments is eliminated. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Surface Transportation Program Encouragement of Youth Conservation Corps Senate bill The Senate bill contains no comparable provision. House bill Subsection 108(h) encourages the use of youth corps to perform transportation enhancement projects. Conference substitute The Conference adopts the House provision. Surface Transportation Program Approval Senate bill Subsection 1223(b) amends section 133 of title 23 to reduce the current quarterly, project-by-project State certification and notification requirements to annual, program-wide approval of each State's project agreement. House bill Subsection 108(f) changes the program approval process for the Surface Transportation Program from a quarterly to an annual basis. Conference substitute The Conference finds both the House and Senate provisions substantially equivalent. Payments Senate bill Subsection 1223(c) eliminates the current requirement that payments made by the Secretary to the States under section 133 of title 23, U.S.C. not exceed the Federal share of costs incurred as of the date the State requested payment. This simply reflects the Department of Transportation's current administrative policy regarding innovative financing mechanisms applicable to transportation enhancement projects. Innovative financing techniques will give States additional flexibility by allowing them to calculate the non-Federal share for enhancements projects on either a project, multiple project, or program basis. A State's average annual non- Federal share of transportation enhancement projects must be at least 20 percent. A single project, however, may have a 100 percent Federal share, but each State's annual enhancements programs must comply with the 20 percent non- Federal match requirement. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Design Build Contracting Senate bill Section 1224 provides authority, after two years of enactment of this Act, for State transportation departments to use the design-build approach for construction of eligible title 23 project segments. Design-build is an innovative method of highway contracting that is not allowed under current law. It differs from traditional contracting in that it combines, rather than separates, responsibility for the design and construction phases of a highway project. This section allows States to use their State design-build contracting procedures in statute or procedures authorized under section 303M of the Federal Property and Administrative Services Act of 1949. The benefits of the design-build approach include greater accountability for quality and costs, less time spent coordinating designer and builder activities, firmer knowledge of project costs, and a reduced burden in administering contracts. Design-build is particularly advantageous for accelerating project delivery. For example, a study of 11 design-build projects in Florida found that this innovative contracting method produced significant improvements in project performance as compared to non- design-build projects. The average design-build construction time was 21.1 percent shorter than the average for non- design-build projects. In addition, actual design-build procurement times were 54 percent less than the normal design procurement time allocated for projects using traditional contracting methods. The design-build projects also produced a 4.7 percent reduction in after-bid changes to the contract. Despite the potential advantages of design-build, it may not be an appropriate method for carrying out every highway project. Therefore, this section provides minimum cost requirements for potential design-build projects. To qualify for the award of a design-build contract, the cost of each usable segment of a highway project must be at least $50,000,000. In the case of an Intelligent Transportation Systems project, the total cost of the project must exceed $10,000,000. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with modifications. It allows States to use any design-build selection procedures determined appropriate by the Secretary and requires the Secretary to submit a report to Congress within 5 years after enactment of this Act. This report will analyze the effectiveness of design-build contracting procedures. Use of Consultants (Selection Process) Senate bill Section 1225(c) allows a State to procure consultant services under a single contract for preparation of both the environmental analysis and subsequent engineering and design services if the State has conducted an independent multi- disciplined review of the objectivity of the analysis. House bill Section 104(b) allows a State to procure consultant services under one contract for the preparation of any environmental analysis as well for subsequent engineering and design services if the State has conducted a review of the objectivity of the analysis. Conference substitute The Conference adopts the House provision. [[Page H3906]] Eligibility of Ferry Boats Senate bill Section 1232 clarifies that the construction of ferry boats and ferry terminal facilities are eligible uses of National Highway System (NHS), Surface Transportation Program (STP), and Congestion Mitigation and Air Quality Improvement program (CMAQ) funds. This simply clarifies how the program is currently administered and does not amend or weaken any of the underlying eligibility requirements of the NHS, STP, or CMAQ programs. House bill The House bill contains no comparable provision. Conference substitute The Conference does not adopt the Senate provision. Eligibility of Projects on the National Highway System Senate bill Section 1234 amends section 103 of title 23, United States Code, to include publicly owned intracity or intercity passenger rail capital projects, including Amtrak, as an eligible activity for National Highway System (NHS) program funds under the same criteria that apply currently to transit and non-NHS highway projects. NHS funding eligibility is amended also to include natural habitat enhancement and encourage the use of approved private-sector mitigation banks for wetlands lost through highway construction. Preference is given, to the extent practicable, to banks if they are in accordance with federal guidelines on mitigation banking and are within the service of the impacted wetland. This section also adds the following new items to the list of projects eligible for NHS funding: (1) publicly owned intracity or intercity passenger rail or bus terminals, including those owned by Amtrak; (2) publicly owned intermodal surface freight transfer facilities, other than seaports and airports located at, or adjacent to, the NHS or connections to the NHS; (3) infrastructure-based Intelligent Transportation Systems capital improvements; and (4) publicly owned components of magnetic levitation (MAGLEV) systems. This section also adds to the list of eligible NHS projects a paragraph applicable only to projects on the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, permitting these territories to use their NHS apportionments for any STP-eligible project, any airport, and any seaport. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with a modification. The substitute does not include eligibility for intracity and intercity passenger rail under this program. Minor Collectors Senate bill The Senate bill contains no comparable provision. House bill Subsection 108(e) allows up to 15 percent of surface transportation program funds apportioned for areas of less than 5,000 in population to be used on minor collectors. Conference substitute The Conference adopts the House provision with modifications. Design Flexibility Senate bill Section 1236 clarifies section 109 of title 23 regarding the Secretary's responsibilities regarding planned future traffic needs and the Secretary's responsibilities in reviewing State plans for proposed highway projects. This modification eliminates the requirement that the Secretary ensure that a State plan for a highway project must accompany future traffic demands. The revised section only requires that the Secretary ensure that future traffic needs were considered. House bill The House bill contains no comparable provision. Conference substitute The Conference does not adopt the Senate provision. State Infrastructure Banks Senate bill Section 1301 codifies the State Infrastructure Bank (SIB) Pilot Program authorized in the NHS Designation Act of 1995. This section includes modifications to increase the flexibility of the SIB program. The current 10-State limit on the number of participants in the SIB program is eliminated, thus enabling any State to establish a State Infrastructure Bank. The percentage limitation regarding funds a State can transfer to use State infrastructure banks is eliminated. The 10-state limit unnecessarily restricted States from pursuing this financial mechanism and the percentage limitation unnecessarily limits States' use of this mechanism. The need to maintain separate highway and transit accounts also imposed an accounting burden on States that was inconsistent with financial flexibility desired in a financing entity such as a State Infrastructure Bank. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts a substitute provision. The conference adopts a four State pilot program. The participating States are Missouri, California, Florida, and Rhode Island. Transportation Infrastructure Finance and Innovation Act Senate bill Subtitle C, Chapter 2 establishes a Federal credit assistance program for major surface transportation projects under the Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA). House bill The House bill contains no comparable provision. Conference agreement The conference adopts the Senate provision, with certain modifications. The TIFIA program is designed to assist major surface transportation projects with their own revenue streams, which can attract substantial private capital with a limited Federal investment. This program offers the sponsors of large transportation projects a new tool to leverage limited Federal resources, stimulate additional investment in our Nation's infrastructure, and encourage greater private sector participation in meeting our transportation needs. Eligible projects for TIFIA assistance include any projects eligible under title 23 (highway and transit capital projects) as well as international bridges and tunnels, inter-city passenger bus and rail facilities and vehicles (including Amtrak and magnetic levitation systems), and publicly-owned intermodal freight facilities. Examples of the types of projects which may benefit from this program are the Woodrow Wilson Bridge, the Farley/Pennsylvania Station project in New York City and the State of Florida's proposed high-speed rail project between Miami, Orlando and Tampa. Project sponsors may be governmental units, private entities, or public-private partnerships. The Conferees wish to reiterate language concerning the Florida high-speed rail project in the Senate committee report section on TIFIA. This project represents an effort by the State of Florida to bring a new technology to the United States by using an innovative public-private partnership that does not rely on Federal grant support. The State of Florida's request for a Federal loan equal to \1/3\ of project costs should receive favorable consideration from the Department of Transportation, provided it meets program criteria. To be eligible for credit assistance, a project must meet certain threshold criteria. It must cost at least $100 million or 50 percent of a State's annual apportionment of Federal-aid funds, whichever is less. (For intelligent transportation system projects, the minimum cost is $30 million, due to the substantial capacity enhancements attainable with but a limited investment.) The project also must have the potential to be self-supporting from user charges or other non-Federal dedicated funding sources, be on a State's transportation plan and, at the time of funding, be on a fiscally-constrained State transportation improvement program. An application for credit assistance may be submitted by a State or local government or other entity. The Secretary will select among potential candidates based on various criteria, including the project's regional or national significance, its potential economic benefits, its credit-worthiness, the degree of private sector participation, and other factors. Forms of assistance that can be provided under this program consist of direct loans, loan guarantees, and lines of credit. In all cases the Federal role will be that of a minority investor, with Federal participation limited to not more than 33 percent of total project costs. The Secretary is authorized to enter into agreements with project sponsors containing terms and conditions designed to assist the projects in leveraging additional funds, while ensuring that the program operates in a fiscally-prudent manner. The State in which a project is located may identify a State or local government entity to assist the Secretary in servicing the Federal credit instrument. The Secretary may provide credit assistance to demonstrate to the capital markets the viability of making transportation infrastructure investments where returns depend on residual project cash flows after servicing senior municipal revenue bonds or other capital markets debt. An objective of the program is to help the financial markets develop the capability ultimately to supplant the role of the Federal government in helping finance the costs of large projects of national significance. That is why loan guarantees are limited to major institutional lenders, such as defined benefit pension funds, which may be potential providers in the future of supplemental and subordinate capital for projects. The Conference would like the Secretary to encourage Federal borrowers to prepay their direct loans or guaranteed loans as soon as practicable from excess revenues or the proceeds of municipal or other capital market debt obligations. The Secretary also may sell off direct loans to third parties or into the capital markets, if such transactions can be arranged upon favorable terms. The Conference recognizes that the Congress enacted the Deficit Reduction Act of 1984 provision prohibiting the combination of Federal guarantees with tax-exempt debt, because of concerns that such a double-subsidy could result in the creation of a ``AAA'' [[Page H3907]] rated security superior to U.S. Treasury obligations. Accordingly, any project loan backed by a loan guarantee as provided in TIFIA must be issued on a taxable basis. The Conference wants to ensure that projects receiving TIFIA assistance are financially-sound. Each project, at the time of its application for assistance, is required to furnish a preliminary rating opinion letter from one of the bond rating agencies identified by the Securities and Exchange Commission as a ``Nationally Recognized Statistical Rating Organization,'' indicating that the project's senior debt obligations have the potential to achieve an investment- grade bond rating. The Secretary shall consult with the Office of Management and Budget, each rating agency providing such an opinion letter, and any other financial experts the Secretary deems necessary, in order to determine the credit instrument's appropriate subsidy cost (capital reserve) pursuant to the Federal Credit Reform Act of 1990. Until such time as a formal investment-grade rating is assigned, the Secretary shall not extend credit in an amount exceeding the estimated subsidy cost. The Conference believes that analytical techniques that are widely-accepted by the capital markets, such as those used by the rating agencies to evaluate the financial stability of municipal bond insurance companies, should be drawn upon to estimate the appropriate subsidy cost. TIFIA expressly requires that projects adhere to Title VI of the Civil Rights Act, the National Environmental Policy Act, and the Uniform Relocation Assistance and Real Property Acquisition Policies Act. the Conference also recognizes that highway and transit capital projects assisted under TIFIA will retain adequate protections for labor in terms of prevailing wages, as required under title 23 provisions. The bill provides $530 million of contract authority, funded from the Highway Trust Fund, to fund the budgetary or subsidy costs of the Federal credit instruments between fiscal years 1999-2003: $80 million in fiscal year 1999; $90 million in fiscal year 2000; $110 million in fiscal year 2001; $120 million in fiscal year 2002; and $130 million in fiscal year 2003. (As with other Federal credit programs, the non-budgetary or financing costs of the Federal credit instruments will be funded from the General Fund.). The bill caps the nominal amount of credit instruments supported by this contract authority at $1.2 billion for each of fiscal years 1998 and 1999; $1.8 billion for fiscal years 2000 and 2001; and $2.0 billion for fiscal years 2002 and 2003. The Conferees are aware that present Federal income tax law prohibits the use of direct or indirect Federal guarantees in combination with tax-exempt debt (section 149(b) of the Internal Revenue Code of 1986. The TIFIA provisions of the conference agreement do not override or otherwise modify this provision of the Code. The Conference finds that developing, implementing, and evaluating financial assistance programs such as TIFIA is a crucial mission of the Department of Transportation. To ensure the financial and programmatic success of TIFIA, the conference strongly encourages the Secretary to establish an organizational structure within the Department in which financial assistance activities and programs can be closely coordinated and monitored. In order to evaluate the effectiveness of this program, the Secretary is required to submit a report to Congress within four years of the date of enactment of this bill. The report should summarize the program's financial performance to date, and recommend whether the objectives of the program would be best met by continuing the program under the authority of the Secretary, establishing a Government corporation of Government-sponsored enterprise to administer the program, or by relying upon the capital markets to fund projects of regional and national significance without Federal participation. Operation Lifesaver Senate bill Section 1401 continues funding for the Operation Lifesaver program and requires a total of $500,000 for each of fiscal years 1998 through 2003 to be set-aside by the Secretary from surface transportation program funds. The funds shall be used for public education programs designed to reduce the number of accidents, deaths and injuries at highway-rail intersections and within railroad rights-of-way. House bill Section 104(c) extends authority for funding for Operation Lifesaver. Conference substitute The Conference finds both the House and Senate provision to be substantially equivalent. Railway-Highway Crossings Senate bill Section 1403 amends section 130 of title 23 United States Code, and expands the eligibility of railway-highway funds to include trespassing countermeasures in the vicinity of the crossing, safety education, enforcement of traffic laws and publicly sponsored projects at privately owned railway- highway crossings. States are required to report to the Department on completed crossing projects funded under this subsection for inclusion in the DOT/American Association of Railroads National Grade Crossing Inventory. This section eliminates the requirement that half the funds authorized under section 130 be available for installation of protective devices at railway-highway crossings. These activities, however, remain eligible for funding under this section. House bill The House bill contains no comparable provision. Conference substitute The Conference does not adopt the Senate provision. Hazard Elimination Program Senate bill Section 1404 expands the eligibility of the current hazard elimination program to include a full range of safety improvements for bicyclists and pedestrians, including multimodal and community safety programs, and spot improvement programs for rapid-response of low costs hazards, such as potholes, roadway and trail debris, and unsafe drainage gates is eligible for funding under this program. This section also makes traffic calming measures eligible for hazard elimination funds. The prohibition on States using hazard elimination funds to correct hazards on routes on the Interstate system is eliminated. This section also revises the reference to ``highway safety improvement project'' in subsection 152(b) to read ``safety improvement project'' to reflect the multimodal focus of the hazard elimination program. House bill Section 138 requires that hazards to bicyclists are included in the hazardous locations inventory. Conference substitute The Conference adopts the Senate provision with modifications. It clarifies that to be eligible under this section, a project must be related to a public surface transportation facility. The Conference substitute does not allow public transportation vehicles to be eligible for these funds, nor does it allow the Secretary to determine additional appropriate projects. In carrying out this section, States should minimize any negative impact on safety and access for bicyclists and pedestrians in accordance with section 217. Specialized Hauling Senate bill The Senate bill contains no comparable provisions. House bill Subsection 134(j) requires a study of the impact of truck weight standards on specialized hauling vehicles. Conference substitute The Conference adopts the House provision with a modification to require the study include, but not be limited to, an analysis of the economic, safety, and infrastructure impacts of truck weight standards. Access for Motorcycles Senate bill The Senate bill contains no comparable provision. House bill Section 135 specifies that State or local governments may not restrict access of motorcycles to any highway facility for which Federal-aid funds were used. Conference substitute The Conference adopts the House provision with modifications to clarify that this provision only applies to Federally-assisted highways open to traffic and will not override or affect the applicability of any local jurisdiction's safety laws. 232 Metropolitan Planning Senate bill Section 1601 retains the current structure and most of the metropolitan planning provisions found in section 134 of title 23. It retains the current project selection process set forth in ISTEA. This section makes the following substantive changes to current law. First, this section streamlines the 16 metropolitan planning factors found in current law into seven issues to be considered in the planning process. Second, it gives States flexibility to move projects within a 3-year Transportation Improvement Program without FHWA approval if the Governor and metropolitan planning organization agree. Third, it eliminates the requirement that transportation improvement programs identify the source of funds for individual projects by Federal funding category. Fourth, this section adds freight shippers to the list of stakeholders to be given opportunities to comment on plans and transportation improvement programs (TIPs). Finally, it provides that, for urbanized areas designated after the enactment of this Act, metropolitan area boundaries shall cover at least the urbanized area and the area expected to become urbanized within the 20-year forecast period and shall require the agreement of the Governor and MPO. Such boundaries are not required to include the entire ozone or carbon monoxide nonattainment areas, as identified under the Clean Air Act. House bill Section 124 amends section 134 of title 23 by setting seven general goals and objectives that may be considered in the planning process. They include: supporting economic vitality; increasing safety and security; increasing accessibility and mobility; protecting the environment; integrating the transportation system; promoting efficiency; and [[Page H3908]] preserving existing facilities. These replace the existing list of nineteen planning factors. The language also includes fostering economic growth and development to the list of reasons that is in the national interest. The section makes a number of technical changes to section 134(g) regarding long range plans. It also allows metropolitan planning organizations to include projects that would be funded if additional resources were available. The inclusion of such projects is for illustrative purposes only. The bill requires that a TIP be updated at least every three years. It also allows the metropolitan planning organizations to include projects that they would advance if additional resources were available. Conference substitute The Conference substitute adopts a combination of both the Senate and House provisions. The substitute retains the basic current metropolitan planning structure and processes. As included in both bills, the 16 planning factors are streamlined to seven general factors to be considered in the planning process. In considering the relationship between transportation and quality of life, metropolitan planning organizations are encouraged to consider the interaction between transportation decisions and local land use decisions appropriate to each area. The language clarifies that the failure to consider any specific factor in formulating plans, projects, programs, strategies and certification of planning processes is not reviewable in court. The Conference substitute also adopts the House provision including economic growth and development as a general requirement in metropolitan planning. As included in both bills, freight shippers and providers of freight transportation services are included on the list of persons to be given opportunities to comment on metropolitan long-range plans and programs (TIPs) along with the addition of representatives of users of public transit. The Conference substitute also adopts the House provision allowing MPOs to include an illustrative list of projects that would be included on the TIP if additional resources were available. The illustrative list does not affect the fiscal constraint requirement of the TIP. The Conference substitute clarifies that the expansion or designation of existing or new metropolitan planning organization boundaries due to the imposition of any new air quality standards will not automatically occur and such boundaries will be determined by agreement of the governor and the affected local governments. Statewide Planning Senate bill Section 1602 retains the current structure and most of the statewide planning provisions found in section 135 of title 23. It retains the current project selection process set forth in ISTEA. This section makes the following substantive changes to current law. First, it streamlines the 20 statewide planning factors found in current law into seven broader issues to be considered in the planning process. Second, it gives States flexibility to move projects within a 3-year Transportation Improvement Program (TIP) without FHWA approval or action if the Governor and metropolitan planning organization agree. Third, it eliminates the requirement that transportation improvement programs must identify the source of funds for individual projects by Federal funding category. Finally, this section adds freight shippers to the list of stakeholders to be given opportunities to comment on plans and statewide transportation improvement programs (STIPs). House bill Section 125 amends section 135 of title 23 by setting the scope of the planning process. States, to the extent they determine appropriate, may consider goals and objectives in the planning process, including supporting economic vitality, increasing safety and security, increasing accessibility and mobility, protecting the environment, integrating the transportation system, promoting efficiency, and preserving existing facilities. These considerations replace the existing planning factors. Freight shippers and freight providers are added to the list of groups that shall be allowed a reasonable opportunity to comment on the proposed long-range plan and on the proposed State transportation improvement plan. It requires that in rural areas, the transportation program be developed by the State in cooperation with local elected officials. It also allows the State to include projects that it would fund if additional resources were available. Projects undertaken pursuant to the high risk road safety program are added to the list of projects that must be selected by the State in consultation with affected local officials. This section also includes a provision to study the effectiveness of local planning. Conference substitute The Conference substitute adopts a combination of both the Senate and House provisions. The substitute retains the basic statewide planning structure and processes. As included in both bills the 20 planning factors are streamlined to seven general factors to be considered in the state planning process. The language clarifies that the failure to consider any specific factor in formulating plans, projects, programs, strategies and certification of planning processes is not reviewable in court. As included in both bills, freight shippers and providers of freight transportation services are included on the list of persons to be given opportunities to comment on statewide long-range plans and programs (TIPs), along with the addition of representatives of users of public transit. The Conference substitute also adopts the House provision allowing States to include an illustrative list of projects that would be included in the TIP if additional resources were available. The illustrative list does not affect the fiscal constraint requirements of the TIP. The Conference substitute adopts the Senate provision, allowing States flexibility to move projects within a three- year transportation improvement program without separate approval or action by the Federal Highway Administration if the MPO concurs. The substitute also includes a provision requiring States to consult with local officials with responsibility for transportation when formulating plans and programs. Technical Correction Federal Aid/National Highway System Senate bill Subsection 1701(a) amends section 103 of title 23, United States Code, to reflect that the National Highway System (NHS) has been designated by Congress. It consolidates several sections of title 23 regarding Interstate system designations and the process for adding segments to the Interstate. This section addresses interstate construction funds and unobligated balances of Interstate substitute funds, as these programs no longer exist. The NHS consists of an interconnected system of principal arterial routes that serve major population center sand intermodal transportation facilities. Its components include the Interstate System and other urban and rural principal aerials and highways (including toll facilities) that provide motor vehicle access between major population centers, border crossings, intermodal transportation facilities, and routes important to defense within the United States. The mileage of the NHS is limited to 178,250 miles. This mileage is equal to the base amount of 155,000 miles, established in current law, plus the 15 percent increase permitted under current law. The Secretary may make modifications to the NHS routes proposed by a State if the Secretary determines that the modification meets the same criteria established under current law. Modification proposals must be coordinated among the State, local and regional officials. An Interstate System route is to be selected by joint action of the State transportation agencies of the State in which the route is located and the adjoining States in cooperation with local and regional officials, and subject to the approval of the Secretary. The mileage of the Interstate System is limited to 43,000, an increase from the 41,000 mile limit under current law. House bill Subsection 106(a) strikes existing provision for the interim eligibility and approval of the National Highway System. Conference substitute The Conference adopts the Senate provision. Corridor 10 Modification for West Virginia Senate bill The Senate bill contains no comparable provision. House bill Subsection 106(J) designates certain portions of Route 10 in West Virginia as part of the National Highway System. Conference substitute The Conference does not adopt the House provision. Nondiscrimination Senate bill Section 1703 amends section 324 of title 23, U.S.C. by moving the provision on discrimination on the basis of sex to section 140 as subsection (d). Under current law, both of these sections address discrimination. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. State Transportation Department Senate bill Section 1704 makes technical corrections to section 302 of title 23, United States Code. It changes the term ``state highway department'' to ``state transportation department'' to emphasize and reflect the intermodal focus of these departments. It eliminates the requirement for a secondary road unit as there is no longer a secondary system and secondary plans have been eliminated. It also establishes that compliance with section 302, as revised by this section shall have no effect on the eligibility of costs. This subsection eliminates 302(b) regarding the construction of projects on the secondary system. House bill Section 134(g) amends title 23 to clarify that section 302 does not limit reimbursement of eligible indirect costs to State and local governments. This will make the Federal-aid Highway program consistent with other Federal programs, reducing an administrative burden caused by requiring States to develop separate accounting systems. [[Page H3909]] Conference substitute The Conference adopts the Senate provision. Signing Survey Senate bill The Senate bill contains no comparable provision. House bill Subsection 133(h) requires the Secretary to conduct a study to determine the practices in the States for specific service food signs. Conference substitute The Conference adopts the House provision with modifications. The substitute provides language to clarify that recommendations for modifications to the Manual on Uniform Traffic Control Devices for Streets and Highways that result from this study should be made only if appropriate. Amendments to Title 23 (De-icing) Senate bill Section 1806 make anti-icing and de-icing compositions that are agriculturally derived, environmentally acceptable, and minimally corrosive eligible for use on bridges under the surface transportation program and on Interstate and National Highway System bridges. House bill Subsections 107(d) and 108(b) makes certain anti-icing and de-icing compositions used on bridges eligible under the bridge program and under the surface transportation program. Conference substitute The Conference adopts the House provision with modifications. The substitute deletes the reference to agriculturally-derived compositions, but environmentally acceptable compositions in general are acceptable. In addition, it ensures, that all bridges are able to use these anti-icing and de-icing components. Penn Station Board, NY Senate bill Section 1810 allows the Secretary of Transportation, the Federal Railroad Administrator and their designees to serve as ex-officio members of the Board of Directors of the Pennsylvania Station Redevelopment Corporation. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Union Station Board DC Senate bill This provision allows the Secretary of Transportation, the Federal Railroad Administrator and their designees to serve as ex-officio members of the Board of Directors of the Union Station Redevelopment Corporation. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Study Southwest Border Infrastructure Senate bill Section 1813 requires the Secretary to conduct a comprehensive assessment of the state of transportation infrastructure on the southwest border between the United States and Mexico. The Secretary is required to submit the report to Congress one year after the date of enactment of this Act. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with a modification to ensure that the assessment of the adequacy of law enforcement and narcotics abatement activities include their relationship to infrastructure in the border area. Report on Utilization Potential Senate bill Section 1817 requires the Secretary to conduct a study of ferry transportation in the United States, including the territories, to identify existing ferry operations and develop information on the ferry routes. The Secretary is to submit the report to Congress within one year of enactment of this Act. House bill Section 121(b) requires the Secretary to conduct a study of ferry transportation in the United States, including the territories, to identify existing ferry operations and to identify potential domestic ferry routes. The provision requires the report to be submitted to Congress. Conference substitute The Conference adopts the House provision with modifications. The substitute adds language to ensure the report includes identification of funding sources for ferry construction, and the potential for high speed and alternative-fueled ferry services. It also states that the report be submitted to the Committee on the Environment and Public Works of the United States Senate, rather than the Commerce, Science and Transportation Committee. Life Cycle Cost Analysis Senate bill The Senate bill contains no comparable provision. House bill Section 139(a) requires life cycle costs analysis on every project under title 23 and requires the analysis to conform with the Executive Order on Infrastructure Investment. Conference substitute The Conference adopts the House provision with modifications. Subsection (a) eliminates the mandate that States conduct life-cycle costing procedures on each usable project segment of $5 million or more on the National Highway System. The Secretary of Transportation shall develop a set of procedures to be issued as recommendations to the States for conducting analyses of the life-cycle costs for projects on the National Highway System. In making a recommendation, the Secretary shall consult with AASHTO and include the principles identified in Executive Order 12893. Life-cycle cost analysis is a process to reduce costs and improve quality and performance. In order to achieve these goals, the Secretary's recommendations shall suggest a uniform analysis period and uniform discount rates as established in OMB Circular A-94 for all Federal-aid National Highway System projects. The recommendation shall incorporate factors such as a documented, vigorous maintenance schedule user costs, and the life of the project. The States are encouraged to use the recommendations to the maximum extent possible on National Highway System projects. Roadside Safety Technologies Senate bill Section 3107 requires the Secretary to issue guidance regarding the benefits and safety performance of redirective and nonredirective crash cushions. States are to use this guidance in evaluating the safety and cost-effectiveness of using different crash cushion designs or other safety appurtenances. Houser bill Subsection 126(a) requires the issuance of guidance to the States on the proper uses of various types of crash cushions. The States shall use such guidance to evaluate the use of such devices. Conference substitute The Conference adopts the House provision with a modification to extend the report deadline to 18 months after enactment, rather than one year. Traffic Flow and Roadside Safety Applications of Road Barriers Senate bill The Senate bill contains no comparable provision. House bill Subsection 126(b) requires the Secretary to conduct a study on the use of moveable barrier technologies. The provision requires the Secretary to submit a report to Congress no later than one year after enactment of this Act, and to provide the report to States for their use on appropriate projects on Federal-aid Highways. Conference substitute The Conference adopts the House provisions with modifications. The substitute provides language clarifying the States can use the results of the study at their discretion. In addition, the deadline for the report is extended to 18 months rather than 1 year after date of enactment. Study: Vehicle Weight Enforcement Senate bill The Senate bill contains no comparable provision. House bill Section 412 directs the Secretary to conduct a study on the effectiveness and deterrent value of State laws and regulations pertaining to penalties for violations of commercial motor vehicle weight laws. The Secretary shall issue a report to Congress not later than two years after enactment. Conference substitute The Conference adopts the House provision. Worker Safety Workers engage in repair, demolition, and maintenance of existing highways, highway structures, and other construction projects frequently are exposed to hazardous materials including lead and asbestos. It is well established that even though safeguards to protect workers are supposed to be place, frequently they are not adequately followed. In 1992, NIOSH conducted a study of contamination of workers' homes with hazardous chemicals and substances transported from the workplace, the study found that such incidents have resulted in a wide range of health effects and death among workers' families exposed to toxic substances and infectious agents. Seven Federal statutes provide Federal agencies with some mechanisms for responding to or preventing workers' home contamination. Twenty rules or standards in the Code of Federal Regulations, including regulations promulgated by the Environmental Protection Agency and OSHA, address workers' home contamination or have elements that serve to protect worker's families. Contamination of workers' homes by hazardous substances transported from the workplace must be minimized. To accomplish this, it is essential that all workers are [[Page H3910]] equipped with suitable protective, reusable clothing, and that such clothing is either disposed of properly or laundered in certified laundry facilities that assure that contamination found in the clothing do not result in exposure in the home, exposure to workers handling the clothing, or become environmental pollutants. Adequate safeguards and facilities exist and the Federal government through enforcement of current Federal regulations should make a greater effort to assure that these safeguards are followed. It is economically beneficial, safe for workers and their families, and environmentally sound to required recyclable or reusable work clothes when engaged in workplace activities involved exposure to hazardous substances. Only licensed laundry facilities, in compliance with Federal standards, should be utilized for the laundering of such clothing. Uniform Transferability Houser bill Section 505 creates a new uniform transferability of Federal-aid highway funds in section 110 in title 23. The provision applies to any highway program or set-aside within a program which does not allow at least 50 percent of the apportioned or set-aside funds to be transferred to another category. The provision allows any State to transfer up to 50 percent of any funds apportioned to it, as well as any funds within that apportionment that have special requirements or constitute a set aside, to any other category of funds. The section also sets rules for the transferability of certain funds set-aside within the Surface Transportation Program. For funds set-aside for the hazard mitigation and rail-highway grade crossing programs, a State may not transfer a mandatory minimum level. For funds set-aside for transportation enhancements, up to 50 percent of the funds above the level received by a State in Fiscal Year 1996 are available to be transferred. For funds apportioned for the Congestion Mitigation and Air Quality program, States may transfer up to 50 percent of the increase over its Fiscal Year 1997 apportionment. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference does not adopt the House provision. Midcourse Correction House bill Section 508 directs the Secretary to withhold certain funds for fiscal 2001 until August 1, 2001 unless Congress enacts a law making midcourse corrections to the highway and transit programs. At a minimum, the midcourse correction must include a funding distribution for the high cost interstate program, approve a system of performance bonuses, approve an Appalachian development highway system program, and approve projects within the transit capital program. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference does not adopt the House provision. Flexibility of Safety Programs House bill The House bill contains no comparable provision. Senate amendment Section 1233 gives additional flexibility to safety set- aside requirements. This provision requires each State to set aside 2 percent of its Surface Transportation Program (STP) apportionment for railway-highway crossings; 2 percent of its STP funds for hazard elimination activities; and 6 percent of its STP funds for railway-highway crossings or hazard elimination activities. Additional discretion is given to each State to transfer up to 100 percent of its 6 percent STP safety set-aside funds to its section 402 safety program or to its Motor Carrier Safety program allocation. The requirement that half the funds authorized and expended under section 130 be available for installation of protective devices at railway-highway crossings is eliminated. The revised section, however, retains this use as an eligible activity. Conference substitute The Conference adopts the Senate provision with a modification. The substitute does not allow transfers to the section 402 safety program or the motor carrier safety program. Railway Crossing Hazard Elimination House bill Section 104(c) extends the High Speed Rail Corridors grade crossing program. Funding for the High Speed Rail Corridors grade crossing program is increased to $5.25 million per year. In addition, the subsection specifically designates the Minneapolis/St. Paul, Minnesota, to Chicago, Illinois, segment as a part of the Midwest High Speed Rail Corridor (also known as the Chicago Hub). The Minnesota, Wisconsin, and Illinois Departments of Transportation have completed preliminary feasibility studies on the Minneapolis/St. Paul- Chicago segment and the Federal Railroad Administration has provided funding for the segment under the Next Generation High Speed Rail Corridor program. Senate amendment Section 1402 authorizes $5 million to be set-aside from Surface Transportation Program funds in each of fiscal years 1998 to 2003 to be allocated by the Secretary to address railway-highway crossing hazards in five existing high speed rail passenger corridors and the authority to select three additional corridors. The Secretary is to consider ridership volume, maximum speeds, benefits to nonriders such as congestion relief, State and local financial support and the cooperation of the owner of the right-of-way. The previously selected rail corridors under the program: (1) San Diego to Sacramento, CA; (2) Detroit, MI to Milwaukee, WI; (3) Miami to Tampa, FL; (4) Washington, D.C. to Charlotte, NC; (5) Vancouver, B.C. to Eugene, OR. The New York City-Albany-Buffalo high speed Empire Corridor as an example of a project that meets the intent of this section because of its current travel at high rates of speed and its level of ridership. Conference substitute The Conference adopts the Senate provision with modifications. The substitute includes funding for site specific corridors that were included in both the Senate and House bills. It also makes improvements to the Minneapolis/ St. Paul-Chicago segment of the Midwest High Speed Rail Corridor. Gulf Coast Corridor House bill The House bill contains no comparable provision. Senate amendment Section 1402 requires the Secretary to expend funds under the railway-highway crossing hazard elimination in high speed rail corridors program for a Gulf Coast high speed railway corridor. Conference substitute The Conference adopts the Senate provision. Environmental Streamlining House bill Section 502 establishes a coordinated environmental review process for highway construction projects so that whenever practicable, all environmental reviews, analyses, opinions and any permits, licenses, or approvals that must be issued by a Federal agency are conducted concurrently and within cooperatively established time periods. The time periods must be consistent with those established by the Council on Environmental Quality (CEQ) in implementing NEPA. Agreed upon time periods may be extended by the Secretary, if, upon good cause shown, the Secretary and the Federal agency determine that an extension is necessary as a result of new information that could not reasonably have been anticipated when the time periods for review were established; In the event that an agency fails to complete its review or analysis within an agreed upon time period, the Secretary may close the record. The House bill further directs the Secretary, in consultation with CEQ, to establish a State environmental review delegation pilot demonstration program to allow a limited number of States to assume responsibility for implementing NEPA for highway projects. The pilot program is authorized for three years. Senate amendment Section 1225 requires the Secretary to develop an integrated decisionmaking process for surface transportation projects. Using the environmental review process under the National Environmental Policy Act (NEPA), the section establishes a mechanism to coordinate the permitting process for surface transportation projects, encouraging consolidation of Federal, State, local and Tribal decisionmaking to the maximum extent practicable, and early consideration of environmental impacts. The section further encourages the use of collaborative, problem solving and consensus building approaches to implement the integrated process. Conference substitute The Conference adopts the House language with the following three modifications. First, the provisions establishing a pilot program to delegate responsibility for compliance with the requirements of NEPA to up to eight States is deleted. Second, the language directing agencies to provide due consideration to the determination of the Secretary with respect to the purpose and need of a highway project is deleted. Third, the conference substitute clarifies that the authority of the Secretary to close the record in the event that another agency fails to meet an agreed-upon deadline for completing its environmental review of a proposed project is limited to the record with respect to the matter before the Secretary. Both the House and Senate bills seek to address the same concerns; the delays, unnecessary duplication of effort, and added costs often associated with the current process for reviewing and approving surface transportation projects. The U.S. Department of Transportation has, through its administrative initiatives, attempted to address some of these problems. Legislation is appropriate, however, to further improve the integration and coordination of decisions relating to highway projects. Better and earlier coordination among the agencies involved in the decisionmaking process for highway projects should help reduce conflicts and their associated delays and costs. The fundamental goals of the environmental streamlining provisions are to establish an integrated review and permitting process that identifies key decision points [[Page H3911]] and potential conflicts as early as possible; integrates the NEPA process as early as possible; encourages full and early participation by all relevant agencies that must review a highway construction project or issue a permit, license, approval or opinion relating to the project; and establishes coordinated time schedules for agencies to act on a project. To accomplish these goals, the Conference substitute adopts the House provision encouraging the Secretary to enter into memoranda of agreement (MOAs) with the agencies responsible for reviewing the environmental documents prepared under NEPA or for conducting other environmental reviews, analyses, opinions or issuing any licenses, permits or approvals relating to a project. It is expected that Federal, State and other agencies involved in reviewing and approving a project, or components of a project, will use the MOA process to establish cooperatively determined time periods to complete their work and, more generally, to describe how, and the extent to which, the various permitting requirements and environmental reviews relating to the project will be integrated. MOAs may include a variety of interagency agreements. In order to avoid subsequent conflicts and delays on a project, agencies are encouraged to solicit early public input in the development of an MOA. The Conference substitute retains the House provisions regarding the joint development of time periods for each agency involved in the review and approval of a project to complete its review. The language further provides that any environmental reviews, including those required under NEPA, conducted with respect to a project shall generally be done concurrently unless conducting a concurrent review would result in a significant adverse effect on the environment, would substantively alter Federal law, or would not be possible without information developed during the review process. This last exception is intended to ensure that agencies are not put in the position of having to complete environmental reviews before they have sufficient information to conduct a meaningful review. The provisions relating to the Secretary's authority to close the record have been modified to clarify the extent of the Secretary's authority to issue a record of decision for a project in the event that another agency fails to meet the agreed upon deadline for completing its review of any environmental documents required for the project under NEPA. The Secretary's authority to close the record authority does not extend to reviews, analyses, opinions or decisions conducted by another agency on any permit, license or approval issued by that agency. For example, if a project requires the Corps of Engineers to issue a permit under section 404 of the Clean Water Act, the Secretary may not restrict the Corps' review with respect to its decision to issue the 404 permit, even if the Corps fails to meet a deadline set forth in a MOA with the Secretary. Therefore, the conference substitute includes language affirming that the Secretary's authority to close the record is limited to the record on the matter pending before the Secretary. This still allows the Secretary to issue a record of decision on a highway project, even if other agencies have not completed their review of the environmental documents required under NEPA for the project. The conference substitute allows the additional costs associated with Federal agencies complying with this streamlined process to be considered eligible projects expenses under the Federal-aid highway program. Such costs may only be for the additional amount the Secretary determines are necessary to Federal agencies to meet the time periods for environmental review where such time periods are less than the customary time for such review. For purposes of this section, the term Federal agency includes any Federal agency or State agency carrying out affected responsibilities by operation of Federal law. These provisions makes a number of significant procedural changes and improvements to the process for reviewing and approving highway projects. It is expected that the Secretary will publish regulations, after public notice and comments, to implement these new procedures. Applicability of NEPA House bill The House bill contains no comparable provision. Senate amendment Section 1602(h) of the Senate bill reaffirms that the requirements of the National Environmental Policy Act (NEPA) do not apply to State plans and programs developed pursuant to sections 134 or 135 of title 23, United States Code. Conference substitute The Conference substitute adopts the Senate language. This provision is consistent with current law and practice. To date, State transportation plans and programs developed under sections 134 or 135 of title 23, United States Code, and decisions by the Secretary regarding those plans or programs, have not been considered to be Federal actions for purposes of NEPA. Nothing in this provision, however, is intended to prohibit a State from applying NEPA early in the decisionmaking making process for surface transportation projects, including at the planning stage, if it so chooses. Individual projects included in plans or programs continue to be subject to NEPA. Repeat Offenders House bill The House bill contains no comparable provision. Senate amendment Section 1405 establishes a new program to address the growing problem of repeat, hardcore drunk drivers with high alcohol concentrations. The section requires States to enact and enforce penalties for drunk drivers who have an alcohol concentration of .15 or greater, and who have been convicted of a second or subsequent drunk driving offense within 5 years. Minimum penalties shall include a license suspension of not less than 1 year, an assessment of the individual's abuse of alcohol and recommended treatment regimes as appropriate, and either an assignment of 30 days community service or 5 days of imprisonment. States failing to enact or enforce the described minimum penalties for repeat drunk drivers with high alcohol concentrations by fiscal year 2000, will have 1\1/2\ percent of their INHS and STP funds transferred to fund alcohol- impaired driving programs. For fiscal year 2002 and 2003, States that have failed to enact or enforce a repeat intoxicated driver law will be required to transfer 3 percent of their NHS and STP funds for alcohol-impaired driving programs. Conference substitute The Conference adopts the Senate provisions with modifications. Instead of withholding funds, the substitute language the States in noncompliance to transfer funds to safety programs. Seat Belt Incentive Grant House bill The House bill contains no comparable provision. Senate amendment Section 1406 establishes a new program to encourage States to promote and increase seat belt usage in passenger motor vehicles. This new program provides incentive grants to States that either obtain a State seat belt use rate above the national average, or increase the State seat belt usage. The Secretary shall determine annually: 1) those States that achieved a usage rate higher than the national average, and the amount of Federal government budget savings from Federal medical insurance programs associated with the higher seat belt usage rate; or 2) those States that realized an increase in the seat belt rate compared with the State's base rate, and the resulting Federal government budget savings from Federal medical insurance-programs. Under this section, the Secretary is required to allocate to each State in fiscal years 1999 through 2003 the amount of Federal medical savings that resulted from either increases in seat belt usage over the national average or increases over the State's base rate. This section provides $60 million for fiscal year 1998; $70 million for fiscal year 1999; $80 million for fiscal year 2000; $90 million for fiscal year 2001; and $100 million for each of fiscal years 2000 and 2003. Conference substitute The Conference adopts the Senate provision. Scenic Byways Center, Duluth, Minnesota House bill Section 118(c) authorizes $1.5 million for each fiscal years 1998 through 2003 to establish a center for national scenic byways in Duluth, Minnesota. This center would provide technical communications and network support for nationally designated byway routes. Senate amendment The Senate contains no comparable provision. Conference substitute The Senate adopts the House provision. It is the Conferees intent that the Center for the National Scenic Byways be staffed by the regional planning agency located in Northeastern Minnesota. The regional planning agency located in Northeastern Minnesota has experience in transportation planning, tourism planning, resource planning, economic development and community planning. The regional planning agency has demonstrated its ability to manage scenic byway projects, develop a technical information network and provide national leadership in supporting the National Scenic Byway Program. Wetland Restoration Pilot Program House bill The House bill contains no comparable provision. Senate amendment Section 1503 authorizes the Secretary to establish a national wetland restoration pilot program. This discretionary pilot program shall fund restoration projects to offset the degradation of wetlands resulting from highway construction projects carried out before December 27, 1977. The Secretary is required to submit a report on the results of the program every three years. This provision provides contract authority in the amount of $12 million for fiscal year 1998; $13 million for fiscal year 1999; $14 million for fiscal year 2000; $17 million for fiscal year 2001; $20 million for fiscal year 2002; and $24 million for fiscal year 2003 to carry out this program. This section is devoted to historic losses of wetlands only. Funds provided in this program are not intended to reward State departments of transportation for knowingly [[Page H3912]] degrading wetlands through highway construction. Therefore, the funds provided in this section are not to be used to mitigate wetlands losses from current and future highway projects or from projects carried out after December 1977. Conference substitute The Conference adopts the Senate provision. TITLE II--HIGHWAY SAFETY amendments to title 23 House bill This section provides that, except as otherwise specifically provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provisions of law, the reference shall be considered to be made to a section or other provision of title 23, United States Code. Senate amendment Section 3002 provides that, unless otherwise provided, statements of amendment or repeal in this title refer to sections or provisions of title 23, United States Code. Conference substitute No provision is included. sec. 2001. highway safety programs House bill Sec. 202. Highway Safety Programs. Subsection (a) amends the highway safety program to include uniform guidelines that prevent accidents. This subsection also makes a technical and conforming amendment to the highway safety program. Subsection (b) makes several technical and conforming amendments to section 402(b). Subsection (c) amends section 402(c) to increase the minimum annual apportionment to Indians (through the Secretary of the Interior) from one-half of one percent to three-fourths of one percent of the total apportionment under the section. Subsection (d) amends section 402(i) to allow section 402 grants to be made to Indian tribes in Indian Country. This subsection also defines Indian Country. Subsection (e) amends section 402(j) to delete rulemaking requirements and instead directs the States to consider highly effective programs that reduce crashes, injuries, and deaths that have been identified by the Secretary when the States develop their highway safety programs. Senate amendment Sec. 3101 continues the existing State and community highway safety program, established under Section 402 of title 23, United States Code, and amends the program as follows: Subsection (a), ``Uniform Guidelines,'' and Subsection (b), ``Administrative Requirements,'' make several technical and conforming amendments to Sections 402 (a) and (b). Subsection (c), ``Apportionment of Funds,'' makes one technical correction to Section 402(c) and one substantive amendment. To increase the effective delivery of the Section 402 program to the more than 500 Federally recognized Indian tribes, an amendment is provided to raise the minimum annual apportionment to the Indians (through the Secretary of the Interior) from one-half of one percent to three-fourths of one percent of the total apportionment under the section. Subsection (d), ``Application in Indian Country,'' amends Section 402 to allow Section 402 grants to be made to Indian tribes in ``Indian Country.'' Subsection (e), ``Rulemaking Process,'' amends Section 402(j), which requires the periodic identification, by rulemaking, of highway safety programs that are most effective in reducing traffic crashes, injuries, and deaths. Instead of requiring the States to direct the resources of the national program to the fixed areas identified by this rulemaking process, the amendment directs the States to consider these highly effective programs when developing their highway safety programs. Section 3105 would amend Section 402(a) of title 23, U.S. Code, to insert ``post-accident procedures, including the enforcement of light transmission standards of glazing for passenger motor vehicles and light trucks as necessary to improve highway safety.'' Conference substitute The conference agreement includes comparable provisions of the House bill and Senate amendment. In addition, subsection 202(f) of the House bill allowing States to use section 402 funds to purchase television and radio time for public service announcements is revised to include a requirement that States which use funds for such purposes submit a report to the Secretary on the effectiveness of the messages. Section 3105 of the Senate amendment regarding enforcement of window glazing standards is included in subsection (a)(3). sec. 2002. highway safety research and development House bill Sec. 203. Highway Safety Research and Development. This section amends section 403(a) relating to highway safety research and development to provide additional authority to the Secretary to engage in research focusing on training in work zone safety management. Senate amendment Section 3104(a)(1) amends Section 403(b)(1) of title 23, U.S. Code, to add a provision on programs to train law enforcement officers on motor vehicle pursuits conducted by police. Section 3104(a)(2), allows the Secretary to use, out of the amounts appropriated to carry out section 403 of title 23, U.S. Code, such amounts as may be necessary to carry out the motor vehicle pursuit training program of section 403(b)(1)(D) of title 23, U.S. Code, but not in excess of $1,000,000 for each of fiscal years 1999, 2000, 2001, 2002, and 2003. Section 3104(b) directs that, not later than 180 days after the date of enactment of this Act, the Attorney General of the United States, the Secretaries of Agriculture, Interior, Treasury, the Chief of Capitol Police, and the General Services Administrator shall transmit a report to Congress on their policy concerning motor vehicle pursuits, and a description of their procedures for such training. Subsection (h), ``Drugged Driver Research and Demonstration Program,'' amends Section 403 (Highway Safety Research and Development) of title 23, U.S. Code, to direct the Secretary to do research on (1) the relationship between the consumption and use of drugs and their effect on highway safety and drivers; and (2) driver behavior research; and measures that may deter drugged driving. Section 3103(1)(E), noted below, authorizes $2 million for each of fiscal years 1999-2003 to carry out the drugged driving research and demonstration programs under subsection (h). Conference substitute The Senate recedes to the House provision amending section 403(a) of title 23 regarding work zone safety management. The House recedes with modifications to subsection 3101(h) and section 3104 of the Senate amendment to amend section 403(b) regarding drugged driving and programs to train law enforcement officers on motor vehicle pursuits conducted by law enforcement officers. Not more than $2 million per fiscal year from section 403 funds shall be available for drugged driving activities and not more than $1 million per fiscal year from section 403 funds shall be available for motor vehicle pursuit activities. sec. 2003. occupant protection incentive grants House bill Sec. 204. Occupant Protection Incentive Grants. This section establishes a new occupant protection incentive grant program under section 405 of title 23, United States Code. The Secretary is authorized to make grants to States that adopt and implement effective laws and programs aimed at increasing safety belt and child safety seat use. New subsection 405(a) sets forth the general authority to make grants to states; requires maintenance of effort by States receiving such grants; sets forth a six-year maximum period of maximum eligibility and a federal share of 75 percent in the first two years a state receives a grant, 50 percent in the third and fourth years, and 25 percent in the fifth and sixth years. New subsection 405(b) sets forth criteria for Grant A. A state must meet at least five (and beginning in fiscal year 2001, six) of the following: (1) a law that makes it unlawful throughout the State the operation of a passenger motor vehicle whenever a person (other than a child who is secured in a child restrain system) in the front seat of a vehicle (and beginning in fiscal year 2000, in any seat in the vehicle) does not have a safety belt properly secured about the person's body; (2) a provision in its safety belt use law that provides for its primary enforcement; (3) the State imposes a minimum fine or penalty points against an individual's driver's license for a violation of the State's safety belt use law; (4) a law requiring children up to four years of age to be properly secured in a child safety seat in all appropriate seating positions in all passenger motor vehicles; (5) a Statewide special traffic enforcement program that includes emphasis on publicity for the program; (6) a Statewide comprehensive child occupant protection education program; and (7) a law that a child up to 10 years of age (and beginning in 2003 a child up to 16 years of age) is properly restrained. New subsection 405(c) sets forth criteria for Grant B: A State must: (1) demonstrate a Statewide safety belt use rate in both front outboard seating positions in all vehicle types of 80 percent or higher in each of the years a grant is received; and (2) follow safety belt use survey methods which conform to guidelines issued by the Secretary ensuring that such measurements are accurate and representative. New subsection 405(d) provides that States that meet the criteria for grants A or B would receive, for each grant, up to 30 percent of its fiscal year 1997 apportionment under section 402, of title 23, United States Code. New subsection 405(e) defines the terms ``child safety seat,'' ``motor vehicle,'' ``multipurpose passenger vehicle,'' ``passenger vehicle,'' and ``safety belt.'' New subsection 405(f) provides that administrative expenses are limited to 5 percent of program funds. New subsection 405(g) provides that funding for the program is provided with contract authority and the non-Federal share may be provided through credits for State and local expenditures. The Secretary also has the authority to increase the Federal share for certain Indian tribe programs. The Secretary of Interior is authorized to receive funds made available for Indian tribe programs. [[Page H3913]] Senate amendment Section 3103(g) amends title 23, U.S. Code, to establish a new occupant protection inventive program under Section 410 of title 23 (``Safety belts and occupant protection programs''), to encourage States to increase their level of effort and implement effective laws and programs aimed at increasing safety belt and child safety seat use. The new Section 410 contains two subsections--subsection (a) and subsection (b). Under Section 410(a), a State may establish its eligibility for one or both of two basic occupant protection grants--A and B--by adopting or demonstrating certain criteria, as appropriate, to the satisfaction of the Secretary. To establish eligibility for the first basic grant A under paragraph (1), a State must adopt or demonstrate at least 4 of the 6 following: (1) a law that makes unlawful throughout the State the operation of a passenger motor vehicle whenever a person in the front seat of the vehicle (other than a child who is secured in a child restraint system) does not have a safety belt properly secured about the person's body; (2) a provision in its safety belt use law that provides for its primary enforcement; (3) a law requiring minors who are riding in a passenger motor vehicle to be properly secured in a child safety seat or other appropriate restraint system; and, an effective public awareness program that advocates placing passengers under the age of 13 in the back seat of a motor vehicle equipped with a passenger-side air bag whenever possible; (4) demonstrates implementation of a statewide comprehensive child occupant protection education program that includes education about proper seating positions for children in air bag-equipped motor vehicles and instruction on how to reduce the improper use of child restraint systems, and submits to the Secretary an evaluation or report on the effectiveness of the programs at least 3 years after receipt of the grant; (5) a minimum fine of at least $25 for violations of its safety belt use law and a minimum fine of at least $25 for violations of its child passenger protection law; and (6) a statewide occupant protection Special Tariff Enforcement Program (STEP) that includes emphasis on publicity for the program. To establish eligibility for the second basic grant B under paragraph (2), a State must: (1) demonstrate a statewide safety belt use rate in both front outboard seating positions in all passenger motor vehicles of 80 percent or higher in each of the first three years a grant is received, and of 85 percent or higher in each of the fourth, fifth, and sixth years a grant is received; and (2) follow safety belt use survey methods which conform to guidelines issued by the Secretary ensuring that such measurements are accurate and representative. States that meet the criteria for a basic grant under paragraph (1) or (2) would receive, for each grant, up to 20 percent (up to 40 percent if they qualify for both) of their fiscal year 1997 apportionment under Section 402 of Title 23, United States Code. States that meet the criteria for one or both of the two basic grants also would be eligible to receive supplemental grants for one or more of the following: (1) requiring the imposition of penalty points against a driver's license for violations of child passenger protection requirements; (2) having no non-medical exemptions in effect in their safety belt and child passenger protection laws; (3) having in effect a law that requires safety belt use by all rear-seat passengers in all passenger motor vehicles with a rear seat. For each supplemental grant criterion that is met, a State would receive an amount up to 5 percent of its Section 402 apportionment for fiscal year 1997. Definitions are provided for ``child safety seat,'' ``motor vehicle,'' ``multipurpose passenger vehicle,'' ``passenger car,'' ``passenger motor vehicle,'' and ``safety belt.'' Under Section 410(b), subject to the availability of appropriations, the Secretary may make a grant to a State that demonstrates the implementation of a Child Occupant Protection Education Program, described in subsection (a)(1)(D), that submits an application, in the form and manner as the Secretary may prescribe, that is approved by the Secretary to carry out activities specified in subparagraph (B) through: (1) the child occupant protection program of the State, described in subsection (a)(1)(D); and (2) at the option of the State, a grant program established by the State to provide for carrying out of 1 or more of the activities specified in subparagraph (B) by a political subdivision of the State or an appropriate private entity. Funds provided to a State under a grant under this subsection shall be used to implement child restraint programs specified under subparagraph (B), which specifically include programs that: (1) are designed to prevent deaths and injuries to children under the age of 9; and (2) educate the public concerning all aspects of the proper installation of child restraints using standard seatbelt hardware, supplemental hardware, and modification devices (if needed), including special installation techniques; and appropriate child restraint design, selection and placement; and harness threading and harness adjustment; and train and retrain child passenger safety professionals, police officers, fire and emergency medical personnel, and other educators concerning all aspects of child restraint use. The Secretary may make a grant under this subsection without regard to whether a covered State, described in subsection without regard to whether a covered State, described in subsection (a)(1)(D), is eligible to receive, or has received, a grant under subsection (a). The appropriate official of each State that receives a grant under this subsection shall prepare, and submit to the Secretary, an annual report for the period covered by the grant. This report shall contain such information as the Secretary may require; and at a minimum, describe the program activities undertaken with the grant funds. Also, not later than 1 year after the date of the enactment of this provision, and annually thereafter, the Secretary shall prepare, and submit to Congress, a report on the implementation of this subsection that includes a description of the programs undertaken and materials developed and distributed by the States that receive grants under this subsection. Separate authorizations are provided to carry out subsection (b) of $75,500,000 for each of fiscal years 1999 and 2000. Conference substitute The conference agreement includes provisions from the House bill and the Senate amendment. A State is eligible to receive a grant if it meets 4 of the following criteria: (1) a law that makes it unlawful to operate a vehicle whenever an individual in the front seat (and beginning in the year 2001, any seat) of a vehicle does not have a seat belt properly secured; (2) the State provides enforcement of its safety belt use laws; (3) the State imposes minimum fines or provides for penalty points for violations of its safety belt use laws or child passenger protection laws; (4) the State has implemented a statewide enforcement program; (5) the State has implemented a statewide comprehensive child passenger protection education program; and (6) the State has in effect a law that requires minors to be properly secured in a child seat or other appropriate restraint system. It is noted that States have differing laws regarding the age of ``minors'' and the provision should be implemented in a flexible manner to reflect these differences. A qualifying State may receive a grant amount of up to 25 percent of amounts it received in fiscal year 1997 under section 402. The conference agreement does not include the performance- based incentive grants since a $500 million performance based incentive grant is established in Title I. The House recedes with modifications to subsection 2003(b) of the Senate amendment authorizing a two-year, $15 million general fund program to provide grants to states for child passenger protection education programs. The Senate provision is amended to require a 20 percent non-Federal match for any grant funds received by a State and annual reporting requirements are revised to require a report to the Secretary by any State receiving a grant and a report from the Secretary to Congress to be submitted not later than June 1, 2002. sec. 2004. alcohol-impaired driving countermeasures. House bill Sec. 205. Alcohol-Impaired Driving Countermeasures. This section amends the current section 410 to establish a new comprehensive drunk and impaired driving countermeasures incentive program to encourage States to increase their level of effort and implement effective programs aimed at deterring the drunk driver. New subsection 410(a) sets forth the general authority for the Secretary to make grants. New subsection 410(b) requires maintenance of effort by States receiving a grant. New subsection 410(c) sets forth a six-year maximum period of eligibility and a federal share of 75 percent in the first two years a State receives a grant, 50 percent in the third and fourth years, and 25 percent in the fifth and sixth years. New subsection 410(d)(1) establishes criteria for basic grant A. A State must adopt or demonstrate at least 5 of the following: (1) a State law that provides that an individual with a blood alcohol concentration (BAC) of 0.08 percent or greater while operating a motor vehicle is deemed to be driving while intoxicated; (2) an administrative driver's license suspension or revocation system for drunk drivers; (3) an effective system for preventing drivers under age 21 from obtaining alcoholic beverages and preventing persons from making alcoholic beverages available to individuals under age 21; (4) a Statewide program for stopping vehicles on a nondiscriminatory basis or a Statewide impaired driving special traffic enforcement program that includes emphasis on publicity for the program; (5) effective sanctions for repeat offenders convicted of driving while under the influence of alcohol; (6) programs to target individuals with high BAC while operating a motor vehicle; (7) programs to reduce driving while under the influence of alcohol by individuals age 21 through 34; and (8) an effective system for increasing the rate of BAC testing in fatal accidents and by the year 2000 achieves a rate of testing equal to or greater than the national average. New subsection 410(d)(2) establishes criteria for basic grant B. A State must adopt or demonstrate to the satisfaction of the Secretary that (1) its percentage of fatally injured drivers with 0.10 percent or greater BAC has decreased in each of the 3 most recent calendar years for which statistics for determining such percentages are available; [[Page H3914]] and (2) that percentage has been lower than the average percentage for all States in each of such calendar years. New subsection 410(e) provides that States that meet the criteria for a basic grant would receive, for each grant, up to 30 percent of its fiscal year 1997 apportionment under section 402. New subsection 410(e) authorizes the Secretary to make discretionary grants to States carrying out innovative programs to reduce traffic safety problems resulting from individuals driving while under the influence of alcohol or controlled substances. A State is eligible to receive a discretionary grant only if the State is eligible to receive a basic grant A or B under this section. The amounts made available to carry out the discretionary grants may not exceed 12 percent of the total funds available for section 410. New subsection 410(f) provides that administrative expenses for carrying out this section may not exceed 5 percent of the funds authorized to be appropriated for this section. New subsection 410(g) provides that funding made available under this section would be contract authority. The Secretary is authorized to credit certain amounts of state and local expenditures toward the non-Federal share of the project under this section. The Federal share of the cost of the program for Indian tribes may be increased. Amounts made available for the Indian tribe program will be administered through the Secretary of the Interior. New subsection 410(h) defines the terms ``alcoholic beverage,'' ``controlled substances,'' ``motor vehicle,'' and ``open alcoholic beverage container.'' Senate amendment Subsection 3101(f) amends Section 402 to establish a comprehensive drunk and impaired driving incentive program to encourage States to increase their level of effort and implement effective programs aimed at deterring the drunk driver. The new program is similar in structure to that of the existing Section 410 drunk driving prevention incentive program, established under Section 410 of Title 23, United States Code, and would replace the Section 410 program. A State may establish its eligibility for one or more of three basic alcohol impaired-driving countermeasure grants-- A, B, and C--by adopting or demonstrating certain criteria, as appropriate, to the satisfaction of the Secretary. To establish eligibility for the first basic grant A under paragraph (1), a State must adopt or demonstrate at least 7 of 9 of the following: (1) a law that provides for a per se law setting .08 BAC level as intoxicated; (2) an administrative driver's license suspension or revocation system for drunk drivers; (3) an effective underage drinking program for preventing operators of motor vehicles under age 21 from obtaining alcoholic beverages; (4)(A) a statewide program for stopping motor vehicles on a nondiscriminatory, lawful basis to determine whether the operators are driving while under the influence of alcohol, or (B) a statewide impaired driving Special Traffic Enforcement Program (STEP) that includes emphasis on publicity for the program; (5) effective sanctions for repeat offenders convicted of driving while intoxicated or driving under the influence of alcohol; (6) a three-tiered graduated licensing system for young drivers that includes nighttime driving restriction, requiring that all vehicle occupants to be properly restrained, and providing that all drivers under age 21 are subject to zero tolerance at .02 percent BAC or greater while operating a motor vehicle; (7) programs targeting persons with high blood alcohol concentrations (BAC) who operate a motor vehicle; (8) young adult programs to reduce driving while under the influence of alcohol by persons age 21 through 34; and (9) an effective system for increasing the rate of testing for blood alcohol concentration of motor vehicle operators at fault in fatal crashes. To establish eligibility for the second basic grant B under paragraph (2), a State must adopt either an administrative driver's license suspension or revocation system for drunk drivers, or a law that provides for a per se law setting .08 BAC level as intoxicated. To establish eligibility for the third basic grant C under paragraph (3), a State must demonstrate that its percentage of fatally injured drivers with 0.10 percent or greater blood alcohol concentration has both: (1) decreased in each of the 3 most recent calendar years for which statistics for determining such percentages are available; and (2) been lower than the average percentage for all States in each of such calendar years. States that meet the criteria for a basic grant under paragraphs (1), (2) or (3) would receive, for each grant, up to 15 percent (up to 30 percent if they qualify for two, and up to 45 percent if they qualify for all three) of their fiscal year 1997 apportionment under Section 402 of Title 23, United States Code. States that meet the criteria for any one or more of the three basic grants also would be eligible to receive supplemental grants for one or more of the following: (1) making it unlawful to possess open containers of alcohol in the passenger area of motor vehicles (excepting charter buses) while on the road; (2) adopting a mandatory BAC testing program for drivers in crashes involving fatalities or serious injuries; (3) videotaping of drunk drivers by police; (4) adopting and enforcing a ``zero tolerance'' law providing that any person under age 21 with a BAC of .02 or greater when driving a motor vehicle shall be deemed driving while intoxicated or driving under the influence of alcohol, and further providing for a minimum suspension of the person's driver's license of not less than 30 days; (5) requiring a self-sustaining impaired driving program; (6) enacting and enforcing a law to reduce incidents of driving with suspended licenses; (7) demonstrating an effective tracking system for alcohol-impaired drivers; (8) requiring an assessment of persons convicted of abuse of controlled substances, and the assignment of treatment for all DWI and DUI offenders; (9) implementing a program to acquire passive alcohol sensors to be used by police in detecting drunk drivers; and (10) enacting and enforcing a law that provides for effective penalties or other consequences for the sale or provision of alcoholic beverages to a person under 21. For each supplemental grant criterion that is met, a State would receive, in no more than two fiscal years, an amount up to 5 percent of its Section 402 apportionment for fiscal year 1997. Definitions are provided for ``alcoholic beverage,'' ``controlled substances,'' ``motor vehicle,'' and ``open alcoholic beverage container.'' Conference substitute The conference agreement includes provisions of both the House bill and Senate amendment. A State is eligible to receive a grant under section 410 if it meets five of the following criteria: (A) an administrative license suspension or revocation system for drunk drivers; (B) an effective underage drinking program; (C) a statewide program for stopping vehicles on a non-discriminatory, lawful basis or a Statewide impaired driving special traffic enforcement program that includes emphasis on publicity for the program; (D) graduated licensing systems; (E) programs to target drivers with high BACs; (F) programs to reduce driving under the influence by young adults age 21 through 34; and (G) an effective system for increasing the rate of BAC testing and, by the year 2001, a rate of testing that is equal to or greater than the national average. The conference agreement does not include a .08 BAC criteria since a $500 million .08 incentive program is included in Title I. A qualifying State may receive a grant of up to 25 percent of amounts it received in fiscal year 1997 under section 402. The conference agreement also authorizes the Secretary to make supplemental grants. The provision includes several of the Senate items and includes a new broad criteria. The Secretary should use the supplemental grants to assist States in developing innovative programs. The Secretary may determine the amount of each supplemental grant and is not required to provide the same amount for each grant. The conference agreement provides that the amendments to section 410 of title 23, United States Code, take effect on October 1, 1998 so that funding provided for the remainder of fiscal year 1998 are subject to the current section 410 program requirements. sec. 2005. highway safety data improvements House bill Sec. 206. This section amends section 406 to create a new State highway safety data improvement incentive grant program to encourage States to take effective actions to improve the timeliness, accuracy, completeness, uniformity, and accessibility of the data they need to identify the priorities for national, State and local highway and traffic safety programs, to evaluate the effectiveness of such efforts, to link these data, including traffic records, together and with other data systems within the State, such as medical and economic data, and to improve the compatibility of State systems with national and other States' data systems. The Secretary, in consultation with States and other appropriate parties, is directed to develop model data elements for States' systems. It should be noted that subsection (b) regarding model data elements and that States' plans should demonstrate how the model data elements will be incorporated is not to be interpreted as requiring States to immediately adopt uniform data. The Committee realizes that uniform data systems and reporting may necessitate such changes as modifying computer systems and redesigning police reports. This is a long term goal and the provision directs the State to identify steps it will take to move toward the goal. The States that receive a grant in any fiscal year must enter into an agreement with the Secretary to ensure that the State will maintain its aggregate expenditures from all other sources for highway safety data programs at or above the average level of such expenditures in its two fiscal years prior to the date of enactment of this section. The maximum period of eligibility for a State to receive a grant would be six years, beginning after September 30, 1997. States that meet the criteria for receipt of a grant would receive grants that would be funded through a declining federal share. A State would be eligible for a first-year grant in a fiscal year if it demonstrates that it has (1) established a highway safety data and traffic records coordinating committee with a multi-disciplinary membership; (2) completed a highway safety data and traffic records assessment or audit of its highway safety data and traffic records system; and (3) initiated the development of a strategic plan that identifies and prioritizes the State's highway safety data and traffic [[Page H3915]] records needs and goals, and performance-based measures by which progress toward those goals will be determined. A State also would be eligible for a first-year grant in a fiscal year if it provides (1) certification that it has met the requirements of (1) and (2) listed above; and (2) a multi-year plan that identifies and prioritizes the State's highway safety data and traffic records needs and goals, that specifies how its incentives funds will be used to address those needs and the goals of the plan, and that identifies performance-based measures by which progress toward those goals will be determined; and (3) certification that the highway safety data and traffic records coordinating committee continues to operate and support the multi-year plan. A State that meets certain criteria for a first-year grant would receive up to $125,000, based on available appropriations. A State that meets the additional criteria for a first-year grant would receive an amount equal to a proportional amount of the amount apportioned to the State for fiscal year 1997 under section 402, except that no State would receive less than $225,000. A State would be eligible for a grant in any fiscal year succeeding the first fiscal year in which they receive a State highway safety improvement grant if the State (1) submits or updates a multi-year plan that identifies and prioritizes the State's highway safety data and traffic records needs and goals, that specifies how its incentive funds for the fiscal year will be used to address those needs and the goals of the plan, and that identifies performance- based measures by which progress toward those goals will be determined; (2) certifies that its highway safety data and traffic records coordinating committee continues to support the multi-year plan; and (3) reports annually on its progress in implementing the multi-year plan. A State that meets the criteria for a succeeding-year grant in any fiscal year would receive an amount equal to a proportional amount of the amount apportioned to the State for fiscal year 1997 under section 402 of title 23, except that no State shall receive less than $225,000 based on available appropriations. Administrative expenses for carrying out this section may not exceed 5 percent of the funds authorized to be appropriated. The funding for grants provided under this section is provided with contract authority and the non- Federal share may be provided through credits for State and local expenditures. The Secretary also has the authority to increase the Federal share for certain Indian tribes. The Secretary of the Interior is authorized to receive funds made available for Indian tribe programs. Senate amendment Sec. 3101(f). The Senate bill contains a similar provision with two differences. It includes a provision authorizing the Secretary to award States that do not meet the first-year eligibility criteria up to $25,000 to assist their efforts to qualify in the next fiscal year. The Senate bill does not include a provision on model data elements. Conference substitute The Conference merges the House and Senate provisions by retaining the House model data elements and the Senate $25,000 grants for States that do not meet the eligibility criteria. The Conference emphasizes that while the Secretary should assist States trying to meet the eligibility criteria, the $25,000 grants are available to each State only once. If the State fails to qualify for a regular grant the next year, it would not be eligible for an additional $25,000. The Conference also replaces the word ``causation'' with ``circumstances'' in recognition that determining accident causation precisely is difficult, even when adequate data are available. Collection of data on crash circumstances, however, will contribute to our ability to understand crash causation and identify potentially effective countermeasures. sec. 2006. national driver register House bill Sec. 207. Subsection (a) amends section 30302 (``National Driver Register'') by adding a new subsection (e). Under subsection (e), the Secretary would be authorized to enter into an agreement with an organization that represents the interests of the States to manage, administer, and operate the National Driver Register's (NDR) computer timeshare and user assistance functions. The Secretary is required to demonstrate that any transfer of these functions will begin only after the Secretary makes a determination that all States are participating in the NDR's ``Problem Driver Pointer System'' and that the system is functioning properly. Any agreement entered into to transfer these functions shall include a provision for a transition period to allow the States time to make any budgetary and legislative changes needed in order to pay fees for using these functions. The fees charged by the organization representing the interests of the States in any fiscal year for the use of these functions shall not exceed the organization's total cost for performing these functions in that fiscal year. Subsection (b)(1) amends Section 30305(b) to make technical conforming amendments. Subsection (b)(2) amends section 30305(b) to add two substantive provisions. The first would eliminate a deficiency in the NDR by extending participation to federal departments or agencies that both issue motor vehicle operator's licenses and transmit reports on individuals to the NDR over whom the department or agency has such licensing authority. The reports on these individuals transmitted by the federal department or agency must contain the identifying information specified in subsection 30304(b). Subsection (b) also would allow federal agencies authorized to receive NDR information to request and receive the information directly from the NDR, instead of through a State. The statute currently requires these agencies to submit all NDR inquiries through a State. Subsection (c) directs the Secretary to evaluate the implementation of the NDR and motor carrier and commercial driver license information systems and identify alternatives to improve the ability of States to exchange information about unsafe drivers. The subsection further directs the Secretary to conduct an assessment, with the American Association of Motor Vehicle Administrators, of available technologies to improve access to and exchange of such information. The assessment may consider alternatives to facilitate matching drivers and their records. Senate amendment Sec. 3102. the Senate bill contains a nearly identical provision, but does not include the assessment and evaluation of alternatives to improve the exchange of driver information. Conference substitute The Conference adopts the House provision. sec. 2007. safety studies House bill Sec. 208. Subsection (a) authorizes the Secretary to conduct a study on the benefit to public safety of blowout- resistant tires on commercial motor vehicles. Subsection (b) authorizes the Secretary to conduct a study to assess occupant safety in school buses. Subsection (c) requires the Secretary to report the results of each study to Congress not later than two years after the date of enactment. Subsection (d) authorizes the Secretary to expend no more than $200,000 to conduct each study. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference adopts the House provision with a modification that the funds for these studies shall come from funds authorized for highway safety research and development. sec. 2008. effectiveness of laws establishing maximum blood alcohol concentrations House bill Sec. 209. Subsection (a) directs the Comptroller General to conduct a study to evaluate the effectiveness of State .08 and .02 BAC laws in reducing the number and severity of alcohol-related crashes. Subsection (b) requires the Comptroller General to report to the Congress within two years the results of the BAC study. Senate amendment The Senate bill contains no comparable provision. Conference substitute The Conference adopts the House provision with a modification to the Senate committee receiving the report. sec. 2009. authorizations of appropriations House bill Sec. 210. This section provides authorizations for the section 402 program; the section 403 programs; the occupant protection, alcohol-impaired driving, and highway safety data incentive grants; and the NDR. For the NHTSA section 402 safety program, in fiscal year 1998, $128.2 million is provided; for fiscal year 1999, $150.7 million is provided; for each of fiscal years 2000 through 2003, $195.7 million is provided. For the FHWA section 402 safety program, in fiscal year 1998, $12 million is provided; for fiscal year 1999, $20 million is provided; for each of fiscal years 2000 through 2003, $25 million is provided. For NHTSA section 403 research and development, $55 million is authorized for each of fiscal years 1998 through 2003. For NHTSA section 403 research and development, $20 million is authorized for each of fiscal years 1998 through 2003. For occupant protection incentive grants, in fiscal year 1998, $9 million is provided; in each of fiscal years 1999 through 2003, $20 million is provided. For alcohol-impaired driving countermeasures incentive grants, in fiscal year 1998, $35 million is provided; in each of fiscal years 1999 through 2003; $45 million is provided. For state highway safety data incentive grants, in fiscal year 1998, $2.5 million is provided; in each of fiscal years 1999 through 2003, $12 million is provided. For the National Driver Register, $2.3 million is provided for each of fiscal years 1999 through 2003. The Secretary may transfer unallocated incentive grant amounts among the various grant programs to ensure that each State receives the maximum funding to which it is entitled. Senate amendment Sec. 3103. The section authorizes funds for the section 402 program; the alcohol-impaired driving countermeasures incentive grants; the occupant protection incentive grants; the State highway safety data and [[Page H3916]] traffic records improvements incentive grants; highway safety research; public education; and the NDR. For the section 402 safety program, in fiscal year 1998, $117.9 million is provided; for fiscal year 1999, $123.5 million is provided; for fiscal year 2000, $126.9 million is provided; for fiscal year 2001, $130.4 million is provided; for fiscal year 2002, $133.8 million is provided; for fiscal year 2003, $141.8 million is provided. For alcohol-impaired driving countermeasures incentive grants, in fiscal year 1998, $30.6 million is provided; for fiscal year 1999, $28.5 million is provided; for fiscal year 2000, $29.3 million is provided; for fiscal year 2001, $30.1 million is provided; for fiscal year 2002, $38.7 million is provided; for fiscal year 2003, $39.8 million is provided. For occupant protection program incentive grants, in fiscal year 1998, $13.9 million is provided; for fiscal year 1999, $14.6 million is provided; for fiscal year 2000, $15.0 million is provided; for fiscal year 2001, $15.4 million is provided; for fiscal year 2002, $17.6 million is provided; for fiscal year 2003, $17.7 million is provided. For state highway safety data improvements incentive grants, in fiscal year 1998, $8.4 million is provided; for fiscal year 1999, $8.8 million is provided; for fiscal year 2000, $9.0 million is provided; for fiscal year 2001, $9.2 million is provided. For drugged driving research and demonstration programs, $2.0 million is provided for each fiscal year, 1999 through 2003. For highway safety research, $60.1 million is provided for each fiscal year, 1998 through 2002; and $61.7 million is provided for fiscal year 2003. For programs to educate the motoring public on how to share the road safety with commercial motor vehicles, $500,000 is provided for each fiscal year 1998 through 2003. For the National Driver Register, in fiscal year 1998, $1.6 million is provided; for fiscal year 1999, $1.7 million is provided; for fiscal year 2000, $1.7 million is provided; for fiscal year 2001, $1.8 million is provided; for fiscal year 2002, $1.8 million is provided; and for fiscal year 2003, $1.9 million is provided. The Secretary may transfer unallocated incentive grant amounts among the various grant programs to ensure that each State receives the maximum funding to which it is entitled. Conference substitute The section authorizes funds for the section 402 program; highway safety research and development; the occupant protection incentive grants; the alcohol-impaired driving countermeasures incentive grants; the State highway safety data and traffic records improvements incentive grants; the NDR; and public education. For the NHTSA and FHWA section 402 safety program, a total of $932.5 million is provided for fiscal years 1998 through 2003. For NHTSA and FHWA highway safety research, $72 million is provided for each fiscal year, 1998 through 2003. For occupant protection incentive grants, a total of $68 million is provided for each fiscal years 1999 through 2003. For alcohol-impaired driving countermeasures incentive grants, a total of $219.5 million is provided for fiscal years 1998 through 2003. For state highway safety data improvements incentive grants, a total of $32 million for fiscal years 1999 through 2002 is provided. For the National Driver Register, a total of $12 million is provided for fiscal years 1998 through 2003. For research related to the effects of drugs and driver behavior and measures to deter drugged driving $2 million per fiscal year is available. For programs to train law enforcement officers on motor vehicle pursuits $1 million per fiscal year is available. For programs to educate the motoring public on how to share the road safely with commercial motor vehicles, $500,000 is provided for each fiscal year 1998 through 2003. Because many motorists are unaware of the limitations of large commercial vehicles and the driving practices that could help improve their safety, the Committee believes it is essential to support a national public education program on sharing the road safely. Recognizing that such a national program has been undertaken by the Federal Highway Administration, the Committee believes the greatest safety benefit and efficiency would be achieved by FHWA continuing and improving its current ``share the road'' public education campaign. The Committee expects that the National Highway Traffic Safety Administration will transfer $500,000 each year from Section 403 funds as designated under this section to the Federal Highway Administration for this purpose. The Secretary may transfer unallocated incentive grant amounts among the various grant programs to ensure that each State receives the maximum funding to which it is entitled. TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS sec. 3001. short title House provision No provision in House bill. Senate amendment This title to be cited as the Federal Transit Act of 1997. Conference report The title to be cited as the Federal Transit Act of 1998. sec. 3002. amendments to title 49 House provision Section 301 provides that, unless stated otherwise, all references in this title to a section or other provision of law are to title 49 of the United States Code. Senate amendment No provision included. Conference report Adopts House proposal. sec. 3003. definitions House provision Section 302 amends section 5302 of title 49 to expand the definition of ``capital project'' to include transit-related intelligent transportation systems, preventive maintenance, leasing of equipment or facilities for use in mass transportation under certain circumstances, and certain mass transportation improvements that enhance economic development or incorporate private investment. It also defines preventive maintenance, public transportation, transit, and transit enhancement. Senate amendment Section 5003 expands and clarifies the definition of capital project under section 5302(a)(1) to add preventive maintenance and intelligent transportation systems. It also brings together existing capital provisions on leasing of transit equipment and facilities, the deployment of new technology, and joint development activities into the broadened capital definition. Joint development is expanded to include safety elements and community services as eligible activities. Making preventive maintenance an eligible capital expense gives transit operators greater flexibility and helps to ensure that the federal investment is properly maintained. Preventive maintenance does not include routine or servicing activities or repairing damage caused by an accident. This section also enables small urbanized areas, which are defined as having a population between 50,000 and 200,000, to use any funding distributed under the urbanized area formula program for either operating or capital expenses. This enhanced flexibility mirrors that which is currently provided to rural areas (populations under 50,000). Conference report Adopts Senate provision for preventive maintenance, deployment of new technology, and joint development. Adopts House provision for transit-related intelligent transportation systems and leasing. sec. 3004. metropolitan planning House provision Section 303 amends section 5303(b) of title 49 to repeal the current planning factors and replace them with goals and objectives of the metropolitan planning process. The metropolitan planning organization shall cooperatively determine with the State and mass transit operators how the goals and objectives considered are translated into metropolitan goals and objectives and factored into decision making. This section allows the metropolitan planning organization to include, for illustrative purposes, additional projects that would be included in the long range transportation plan if reasonable additional resources were available. It also amends section 5303(f) to add freight shippers and providers of freight transportation services to the list of persons metropolitan planning organizations are required to give an opportunity to comment on the long range transportation plan. Senate amendment Section 5004 amends the current metropolitan planning provisions in sections 5303, 5304, and 5305 and adds a new section 5305a on Statewide Planning. This new section largely parallels the statewide planning provisions in the highway laws, and is included as a separate provision in the transit laws. This section retains the requirement that MPOs follow the ISTEA planning process outlined in the law. It replaces the 16 individual planning factors in current law with a broader list of seven national goals and factors for the MPOs to consider, and retains consideration of land use. This section clarifies that consideration of these seven factors applies to the planning process as a whole, not separately to each project under review. This section adds language directing the MPOs to cooperate with the state and transit operators, through a public process, to establish goals and propose programs relating to these factors. It adds freight shippers to the list of those who can comment on plans and transportation improvement programs. These same changes are included in the Statewide Planning provisions. This section retains the requirement that the transportation plans be fiscally constrained. It requires MPOs to identify the funding source for projects that are proposed for the regional transportation plan. There is new language directing MPOs to bring together the wide range of transportation services being provided within the region, many of which are funded either directly or indirectly by federal programs other than the Department of Transportation (DOT). The intent of the Committee is to encourage the participation of these non-DOT funded transportation services, either through individual or representative organizations, in coordinating regional transportation services. An analogous provision is included in the Statewide Planning provisions. The Committee recognizes elsewhere in the bill the importance of coordinating these transportation services. Indeed, the Department of Health and Human Services (HHS) [[Page H3917]] and DOT have a long-standing Coordinating Council which is evaluating the departments' current coordination strategies. The objectives of this coordination include: joint identification of human service client transportation needs and the appropriate mix of transportation services to meet those needs; the expanded use of public transit services to deliver human services program transportation; and cost- sharing arrangements for HHS program clients transported by ADA paratransit systems based on a uniform accounting system. This section adds new language for publication of information in the 3-year transportation improvement program and the annual selection of projects. Conference report Adopts Senate proposal on metropolitan planning and includes the representatives of the users of public transit among those to be consulted in the planning process and for enhanced publication of information on project selection. The Senate proposal for a separate statewide planning provision in the transit laws is not adopted. sec. 3005. transportation improvement program House provision This section amends section 5304 of title 49 to require that the transportation improvement program (TIP) be updated at least once every three years. It also provides that the TIP may include, for illustrative purposes, projects that would be included in the plan if reasonable additional resources were available. Senate amendment This section of the legislation requires that any metropolitan planning organization that is classified as a transportation management area and is redesignated after the enactment of this Act, shall include representatives of the users of public transit. Conference report Adopts Senate provision to include representatives of the users of public transit to be consulted in the planning process, and adopts House provision for illustrative list. sec. 3006. transportation management areas House provision This section amends section 5305 to add projects under the high risk road safety program to the list of projects selected by the State in consultation with the metropolitan planning organization. This section also makes a technical amendment to section 5305. Senate amendment Section 5004 makes technical changes to section 5305 and permits the Secretary to make conditional certifications of metropolitan planning organizations. Conference report Provisions substantially the same. SEC. 3007. URBANIZED AREA FORMULA GRANTS House provision Section 306 amends section 5307 of title 49 to change the name of the sections and to make a conforming amendments to the table of sections. It makes technical amendments to section 5307(a) of title 49, and amends section 5307(b)(1) to provide that the Secretary may make grants to finance the operating cost of equipment and facilities only to urbanized areas with populations of less than 200,000. It repeals sections 5307(b)(3) and 5307(b)(5). It also provides that of the funds apportioned each fiscal year to urbanized areas with populations of 200,000 or more under section 5336, at least two percent shall only be for transit enhancement activities. Senate amendment Section 5003 provides flexibility for small urbanized areas to use their formula funds for either capital or operating assistance. Conference report Adopts House provision. SEC. 3008. CLEAN FUELS FORMULA GRANT PROGRAM House provision No provision in House bill. Senate amendment Section 5007 creates a new Clean Fuels formula grant program, with an annual funding authorization of $200 million. This program will assist transit systems in purchasing low emissions buses and related equipment, constructing alternative fuel fueling facilities. modifying existing garage facilities to accommodate clean fuel vehicles and assisting in the utilization of biodiesel fuel. Annual grants to any one recipient are capped $25 million for recipients in urbanized areas over one million population and $15 million for recipients in urbanized areas under one million population. Eligible technologies include compressed natural gas (CNG), liquified natural gas (LNG), biodiesel fuel, battery, alcohol-based fuel, hybrid electric, fuel cell or other zero emissions technology. Conference report Adopts Senate provision. SEC. 3009. CAPITAL INVESTMENT GRANTS AND LOANS House provision Section 308 makes technical changes to section 5309. The section reforms the New Starts evaluation process and requires the Secretary to make fiscally constrained recommendations to Congress. Not more than eight percent of the funds made available in each fiscal year for new fixed guideway systems and extensions to existing systems are available for activities other than final design and construction. This section also clarifies that the Secretary shall consider the age of buses, bus fleets, and related equipment and facilities in making grants for buses and related facilities. This section also provides funding for the bus testing facility for each of fiscal years 1998 through 2003. This section requires that a certain percentage of the funds made available for bus and bus-related facilities be available to carry out the bus technology pilot program and for non-urbanized areas. This section establishes a pilot program for the testing and deployment of new bus technology. Senate amendment Section 5008 amends section 5309(e)(3)(B) to add the benefits of transit-oriented land use as one of the factors to be considered by the Secretary in reviewing New Starts projects. There is a growing awareness and agreements that mass transit investment produces economic benefits, partly through reduced local infrastructure costs. This change is intended to reflect the importance of these considerations in evaluating New Starts. This section similarly amends section 5309(m) to limit the amount of New Starts funding that can be used for purposes other than final design and construction to 8 percent of amounts made available for this program. Conference report Provisions substantially the same. Houston Regional Bus Plan, Westpark Corridor.--The conferees note that under existing law, Houston Metro may apply for, and FTA may approve, the transfer of sums previously appropriated under Metro's Full Funding Grant Agreement from the development of the Westpark Corridor HOV facility to any other section 5309 project, with no effect on any other provisions of the Full Funding Grant Agreement. Accordingly the conferees encourage the Administrator, upon a receipt of such a transfer request (if so requested by Houston Metro), to work with Houston Metro officials to consider approval of such request. SEC. 3010. DOLLAR VALUE OF MOBILITY IMPROVEMENTS House provision Section 309 directs the Secretary to study the dollar value of mobility improvements and report to Congress on the results. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3011. LOCAL SHARE House provision No provision in House bill. Senate amendment Section 5006 provides that the proceeds from the issuance of revenue bonds can be used as a local match. Conference report Adopts Senate provision with modification. If the Secretary finds that the operation of this provision benefits the transit operators, he shall recommend to Congress that a permanent change in the Federal Transit laws be made no later than the reauthorization of this Act to make the proceeds from the issuance of revenue bonds eligible for local share under section 5307 and 5309 of title 49. All Federal grant requirements apply, including the requirement that the recipient has the financial capacity to carry out the project. SEC. 3012. INTELLIGENT TRANSPORTATION SYSTEMS APPLICATION House provision Section 312 makes research grants for fixed guideway technology. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3013. FORMULA GRANTS AND LOANS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES House provision Section 310 makes changes. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3014. FORMULA PROGRAM FOR OTHER THAN URBANIZED AREAS House provision Section 311 makes technical changes. Senate provision No provision in Senate amendment. Conference report Adopts House provision. SEC. 3015, RESEARCH, DEVELOPMENT, DEMONSTRATIONS, AND TRAINING PROJECTS House provision Section 312 makes technical changes. It establishes a program for Joint Partnerships for Deployment of Innovation and International Mass Transportation activities. This section also establishes a mass transportation technology development and deployment program. It also provides funding [[Page H3918]] for the fuel cell transit bus program and maintenance facility, and establishes an Advanced Technology Pilot Project for the development of low-speed magnetic levitation technology for public transportation. Senate amendment Section 5011 establishes a Joint Partnership Program for Deployment of Innovation to implement major research activities. Conference report Senate recedes to fuel cell bus, low speed mag lev proposals, and International Mass Transportation Program. Conferees adopt Joint Partnership for Deployment of Innovation. SEC. 3016. NATIONAL PLANNING AND RESEARCH PROGRAMS House provision Section 313 provides additional funding for activities to help transit providers comply with the Americans With Disabilities Act. Senate provision No provision in Senate amendment. Conference report Adopts House provision. SEC. 3017. NATIONAL TRANSIT INSTITUTE House provision Section 314 changes the name of the Institute and expands the list of subjects that may be taught at the National Transit Institute. Senate amendment Senate amendment amends section 5315(a) to add workplace safety to the list of subjects that may be taught at the National Transit Institute. Conference report Adopts House and Senate provisions. SEC. 3018. BUS TESTING FACILITIES House provision Section 317 clarifies that the Secretary may enter into either a contract or cooperative agreement to operate and maintain the bus testing facility. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3019. BICYCLE FACILITIES House provision Section 318 increases the federal share for bicycle projects that are related to transit enhancement activities. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3020. GENERAL PROVISIONS ON ASSISTANCE House provision Section 319 clarifies that the incremental cost of vehicle- related equipment necessary for complying with or maintaining compliance with the Clean Air Act is reimbursable at a federal share of 90 percent. It also provides that the Secretary may allow a manufacturer or supplier to correct an inadvertent or clerical error in a Buy America Act certification after bid opening. This section encourages coordination in the design and delivery of transportation services among governmental agencies and non-profit organizations that provide such services. It consolidates certifications required by FTA. Senate amendment Section 5016 requires coordination in providing transportation services among governmental agencies and nonprofit organizations that receive federal government funds. Conference report Coordinated transportation provisions substantially the same. Adopts House provision on consolidated certification and on inadvertent error with modification. SEC. 3021. PILOT PROGRAM FOR INTERCITY RAIL INFRASTRUCTURE INVESTMENT FROM MASS TRANSIT ACCOUNT OF HIGHWAY TRUST FUND House provision No provision. Senate amendment Section 5021 permits non-Amtrak states to use their formula funds for inter-city rail. Conference report Adopt Senate provision with modification to establish a pilot program to support Amtrak activities in Oklahoma. SEC. 3022. CONTRACT REQUIREMENTS House provision Section 320 makes technical amendments relating to contracts. Senate amendment No provision in Senate. Conference report Adopts House provision. SEC. 3023. SPECIAL PROCUREMENTS House provision Section 321 makes changes to the definition of a turnkey system project. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3024. PROJECT MANAGEMENT OVERSIGHT AND REVIEW House provision Section 322 clarifies that the Secretary may provide technical assistance to correct deficiencies identified as part of project management oversight. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3025. ADMINISTRATIVE PROCEDURES House provision Section 324 authorizes the Senate to collect fees to cover the costs of training and conferences sponsored by the Federal Transit Administration, and makes technical changes to this section. Senate amendment Section 5017 allows grantees to sell assets, including land, that are acquired with federal funds and to keep the proceeds for use in mass transportation. Conference report Adopts Senate provision. SEC. 3026. REPORTS AND AUDITS House provision Section 325 repeals certain reports that are no longer necessary. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. SEC. 3027. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA GRANTS House provision Section 326 gives urbanized areas with populations under 200,000 flexibility to use their apportionments for either capital or operating expenses and caps the total annual amount at $400 million both operating assistance and preventive maintenance. Senate amendment Section 5019 directs the Secretary, in distributing operating assistance to large urban areas, to consider the impact of any operating assistance reduction on smaller transit authorities operating within the area. This section retains operating assistance for areas over 200,000 in population. Conference report Conferees eliminate the cap on preventive maintenance and operating assistance, and eliminates operating assistance for areas over 200,000. SEC. 3028. APPORTIONMENT OF APPROPRIATIONS FOR FIXED GUIDEWAY MODERNIZATION House provision Section 327 amends the fixed guideway modernization formula. Senate amendment Section 5019 amends the fixed guideway modernization formula. Conference report Senate amendment modified on the floor. Conferees adopt compromise formula allocation. SEC. 3029. AUTHORIZATIONS House provision Section 328 provides authorizations for the transit programs. Senate amendment Section 5002 provides authorizations for the transit programs. Conference report Adopts House provision. It is the intent of the Conferees that authorizations for Budget Authority in 49 USC 5338(h), as amended by this section shall be scored against current discretionary spending limits and not the Mass transit category established by Title VIII of this Act. SEC. 3030. PROJECTS FOR NEW FIXED GUIDEWAY SYSTEMS AND EXTENSIONS TO EXISTING SYSTEMS House provision Section 332 authorizes New Starts projects. Senate amendment No provision in Senate amendment. Conference report Senate adopts House provision. New Orleans Canal Street--The Federal Transit Administration shall establish and credit as local share a value of the ``neutral ground'' (median strip), which will be utilized by the project as the right of way, an amount equal to 50% of the appraised average value of the adjacent property. Dulles Corridor--The Dulles Corridor project is for the preliminary engineering, design and construction of the locally preferred alternative along the Dulles Corridor in the Washington D.C. metropolitan area and may include construction of a bus rapid transit system and preliminary engineering and design of other fixed guideway systems to serve the needs of the corridor. Westlake Commuter Rail--The project authorized in this section includes 8 rail cars. SEC. 3031. PROJECTS FOR BUS AND BUS-RELATED FACILITIES House provision Section 333 authorizes bus and bus-facilities projects. Senate amendment No provision in Senate amendment. Conference report Senate adopts House provision. SEC. 3032. CONTRACTING OUT STUDY House report Section 335 directs the Secretary to enter into an agreement with the Transportation Research Board of the National Academy of Sciences to conduct a study of the effect of [[Page H3919]] privatization or contracting out mass transportation services. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. Funding for the study is $200,000. The additional $50,000 is available for administrative expenses associated with the study. SEC. 3033. URBANIZED AREA FORMULA STUDY House provision Section 337 directs the Secretary to conduct a study on whether the current formula for apportioning funds to urbanized areas reflects the transit needs of the urbanized areas. Senate amendment Section 5020 directs the Secretary to conduct a study on the current urbanized area formula to determine whether changes in apportioning formula funds are needed for small urban areas with populations under 200,000. Conference report Adopts both House and Senate provisions. sec. 3034. coordinated transportation services House provision Section 338 directs the Comptroller General to conduct a study of Federal departments and agencies other than the Department of Transportation that receive federal financial assistance for non-emergency transportation services. Senate amendment No provision in Senate amendment. Conference agreement Adopts House provision. sec. 3035. final assembly of buses House provision Section 339 directs the Comptroller General to review the Federal Transit Administration's monitoring of pre-award and post-delivery audits for compliance with the requirements of final assembly of buses under section 5323(j). Senate amendment No provision in Senate amendment. Conference agreement House recedes. Provision adopted that requires compliance with final assembly requirements by a date certain. sec. 3036. clean fuel vehicles House provision Section 340 directs the Comptroller General to study the various low and zero emission fuel technologies for transit vehicles. Senate provision No provision in Senate amendment. Conference report Adopt House provision. sec. 3037. job access and reverse commute grants House provision Section 330 establishes an Access to Jobs pilot program to fund the transportation of welfare recipients to and from jobs and job-related activities. Senate amendment Section 5014 establishes an Access to Jobs and Reverse Commute program to assist welfare recipients and other low- income individuals get to and from jobs. Sixty percent of funds appropriated under this program must be awarded to projects in large urbanized areas, 20 percent to projects in small urbanized areas, and 20 percent to projects in non-urbanized areas, 20 percent to projects in small urbanized areas, and 20 percent to projects in non- urbanized areas. Grants require a 50 percent local match. Other federal funds, notably those provided through programs at the Department of Health and Human Services, may be used to meet the matching requirements. Under this section, private transportation providers are eligible to submit proposals with states, local governments, and nonprofit organizations for grants under this section. In addition, under this section, a private transportation provider shall also be considered an existing transportation service provider when the requirements of the section are met. Conference report Adopts Senate provision with modification. The conferees anticipate that this grant program will encourage recipients to implement long-term and self-sustaining plans to address the transportation needs of welfare recipients and eligible low-income individuals who live in areas devoid of job opportunities. sec. 3038. rural transportation accessibility incentive program House provision No provision in House bill. Senate amendment No provision in Senate amendment. Conference report Adopts provision making available funds to finance the incremental cost of complying with the Department of Transportation's final rule regarding accessibility of over- the-road buses. sec. 3039. study of transit needs in national parks and related public lands House provision No provision in House bill. Senate amendment No provision in Senate amendment. Conference report Adopts provision directing the Secretary of Transportation, in consultation with the Secretary of the Interior, to study transit needs in national parks. sec. 3040. obligation limitations House provision Section 329 sets obligation limitations for the transit programs. Senate amendment No provision in Senate amendment. sec. 3041. adjustments for the surface transportation extension act House provision Section 331 directs the Secretary to reduce 1998 apportionments and allocations to account for the six months of funding already apportioned and allocated pursuant to the Surface Transportation Extension Act. Senate amendment No provision in Senate amendment. Conference report Adopts House provision. TITLE IV--MOTOR CARRIER SAFETY sec. 4001. amendments to title 49, united states code House bill Section 401 provides that, except as otherwise specifically provided, an amendment or repeal of a section or provision of law in this title shall be a reference to a section or other provision of title 49, United States Code. Senate amendment The Senate amendment includes an equivalent provision (Sec. 3002). Conference substitute The conference adopts the House provision. Sec. 4002. Statement of Purposes House bill Section 402 (a) provides for national objectives for the motor carrier safety grant program, including promoting safety, developing and enforcing effective and cost- beneficial safety regulations, assessing and measuring performance, ensuring adequate training of drivers and enforcement personnel, and advancing new technologies and safe operational practices. Senate amendment Section 3401 proposes to establish a statement of descriptive purposes of the Motor Carrier Safety Act. These purposes are to: improve commercial motor vehicle and driver safety; facilitate the ability to focus resources on strategic safety investments; increase administrative flexibility; strengthen enforcement activities; invest in activities related to areas of the greatest crash reduction; identify high risk carriers and drivers; and, improve information and analysis systems. Conference substitute The conference adopts the ``statement of purposes'' approach as outlined in the Senate provision and incorporates descriptive provisions from both bills. Sec. 4003. State Grants House bill Subsection (a) of Sec. 402 amends section 31101 to revise the definition of ``commercial motor vehicle'' to include vehicles with a gross vehicle weight of at least 10,001 pounds (in addition to the gross vehicle weight rating). Subsection (b) amends section 31102 to include reference to the ``improvement'' of motor carrier safety and includes references to hazardous materials transportation safety as a part of the state grant programs. Subsection (c) amends section 31102(b)(1) of make technical changes in the state plans required as a condition of receiving federal motor carrier safety grants. Requirements that the state plan implement performance-based activities by fiscal year 2003, that States establish programs to ensure proper and timely correction of safety violations, and that States ensure roadside inspections are done at a safe distance from the roadway are added. Subsection (d) amends section 31102 to include a reference to improving commercial vehicle safety, in addition to enforing regulations, as activities eligible for reimbusement. Subsection (e) amends section 31104(a) to provide annual authorization for federal motor carrier safety grants. In fiscal year 1998, $78 million is provided; in fiscal year 1999, $110 million is provided; and in each of fiscal years 2000 through 2003, $130 million is provided. Subsection (f) amends section 31104(b) to delete an outdated provision. Subsection (g) amends section 31104(f) to provide that the Secretary shall allocate amounts to States with approved state plans and shall determine criteria for allocation. The Secretary may designate up to 5 percent of funds made available under the state grant program for reimbursement of State and local government high priority activities which improve commercial vehicle safety. Section 31104(g) is deleted to provide greater flexibility to states in activities to be funded with federal safety grants. Other technical and conforming changes are made. Subsection (h) makes a conforming amendment to the table of sections for chapter 311. Senate amendment Sections 3402-3404 of the Senate bill contain similar provisions. Section 3402 provides [[Page H3920]] that states implement by 2000 performance-based motor carrier safety components in the motor carrier safety assistance program (MCSAP) plans they submit to the Department of Transportation (DOT). The section further requires DOT to ensure that: State motor carrier safety programs are consistent, effective, and contain reasonable sanctions; data collection and information systems are coordinated with State highway safety programs; and, the participation in SAFETYNET by all jurisdictions receiving motor carrier safety assistance grant funds. Section 3403 allows motor carrier safety assistance grants to be used to enforce rules aimed at improving hazardous materials transportation safety. Section 3404(a) amends section 31104(a) to provide annual authorizations for federal motor carrier safety grants. The funding levels authorized are: $80 million for fiscal year 1998; $100 million for fiscal year 1999; $97 million for fiscal year 2000; $94 million for fiscal year 2001; and, $90.5 million in fiscal years 2002 and 2003. Section 3404(c) amends section 31104(f) to provide that the Secretary shall allocate amounts to States with approved state plans and shall determine the criteria for allocation. The Secretary may designate up to 5 percent of funds made available under the state grant program for reimbursement of State and local government high priority activities which improve commercial vehicle safety. Section 31104(g) is deleted to provide greater flexibility to states in activities to be funded with federal safety grants. Other technical and conforming changes are made. Conference substitute The conference adopts the House approach, with modifications. The conference includes the Senate provision for states to implement performance-based MCSAP plans by 2000. The conference accepts the House bill's concept that States ensure roadside inspections are performed at a safe distance from the roadway, but substitutes the word ``location'' for clarification. The conference authorizes the following funding levels for the program: $79 million for fiscal year 1998; $90 million for fiscal year 1999; $95 million for fiscal year 2000; $100 million for fiscal year 2001; $105 million for fiscal year 2002; and, $110 million for fiscal year 2003. The conference agreement modifies the High Priority and Border discretionary programs by allowing the Secretary to designate up to 5 percent of MCSAP funds for States, local governments, and other persons for carrying out activities and programs that improve commercial motor vehicle safety and compliance with safety regulations. A similar designation is permitted for States, local governments, and other persons to carry out border commercial motor vehicle safety programs and enforcement activities and projects. Sec. 4004. Information Systems House bill Subsection (a) of Section 403 replaces the current section 31106 to provide greater authority and flexibility to the Secretary in establishing and operating motor carrier, commercial motor vehicle, and driver information systems and data analysis programs to support safety activities. The Secretary shall work in coordination with the States in developing and maintaining systems which identify and collect data; evaluate the safety fitness of carriers, vehicles, and drivers; develop strategies to mitigate safety problems and measure effectiveness; determine cost-effectiveness of Federal and State safety programs; and adapt, improve and incorporate other information and systems as determined appropriate. The Secretary may prescribe technical and operational standards. The Secretary is directed to include as part of the information systems authorized, a clearinghouse and repository of information related to State registration and licensing of commercial motor vehicles and the motor carriers operating the vehicles. The Secretary is authorized to establish a program to improve commercial motor vehicle driving safety to enhance the exchange of driver licensing information, provide information to the judicial system on drivers, and develop strategies and countermeasures to improve driver safety. This section includes provisions relating to cooperative agreements, grants and contracts and sets forth the availability of information collected in the systems to States, local officials, and the public. The current section 31107, an outdated provision, is deleted and replaced with authorizations for the information systems under section 31106. In fiscal year 1998, $7 million is provided; in fiscal year 1999, $15 million is provided; and in each of fiscal years 2000 through 2003, $20 million is provided. Other technical and conforming amendments to title 49 are made. Senate amendment Section 3405 substitutes the existing Commercial Motor Vehicle information system with a new information system. The section requires the new information network to be capable of identifying motor carriers and drivers, tracking commercial motor vehicle registration and commercial motor vehicle driver licensing, and providing motor carrier and driver safety performance data. The section requires the system to have the capability to utilize the information in order to develop strategies to address safety problems and to measure the effectiveness of those strategies. The section further requires the Secretary to prescribe technical and operation standards to ensure the uniform, timely and accurate information collection and reporting by the States. This section also authorizes the Secretary to establish a commercial motor vehicle safety program that enhances the exchange of driver licensing information, provides information to the judicial system on the program, and evaluates appropriate driver performance and safety aspects. The section permits the Secretary to enter into agreements with other Federal agencies and other parties to carry out the new information and commercial motor vehicle safety program. Conference substitute The conference merges the House and Senate language on the information systems and data analysis program elements. The conference requires the Secretary to prescribe technical and operational standards to ensure uniform, timely, and accurate information collection and reporting by the States and other entities. The conference authorizes assistance to help States develop or implement the information systems established under the section. The conference authorizes the following funding levels for the information systems and data analysis program: $6 million for fiscal year 1998; $10 million for each of fiscal years 1999 and 2000; $12 million for each of fiscal years 2001 and 2002; and, $15 million for fiscal year 2003. The conference further authorizes the Secretary to allocate up to 50 percent of the authorized funding to establish the information clearinghouse directed under this section, and encourages the Secretary to focus its resources on assisting those states that have not previously received such assistance to develop or implement information systems. The conference is providing separate funding for information systems and analysis because they are critical to the successful adoption of performance-based regulations and oversight. The Secretary should ensure that the data in these systems is accurate and timely. In addition, the conference expects the Secretary to develop systems that are linked, providing complete information rapidly to inspectors and safety officers. Finally, while the conference recognizes the benefits such information systems can provide, the conference also recognizes the need for safeguards to protect individuals and companies' privacy. Therefore, the Secretary should carefully develop the information availability policy called for in the new subsection (e). sec. 4005. automobile transporter defined House bill Section 404 amends section 31111(a) to define ``automobile transporter'' as any vehicle combination designed and used specifically for the transport of assembled highway vehicles. Senate amendment The Senate amendment includes a similar provision. Section 3410 defines automobile transporter to mean any vehicle combination designed and used specifically for the transport of assembled highway vehicles, including truck camper units. Conference substitute The conference adopts the Senate provision. The conference notes that the phrase ``truck camper units'' is defined in the ANSI A119.2/NFPA 501C standard on recreational vehicles as ``a portable unit constructed to provide temporary living quarters for recreational, travel, or camping use, consisting of a roof, floor, and sides, designed to be loaded onto and unloaded from the bed of a pickup truck'' (1996 edition). sec. 4006. Inspections and reports House bill Subsection (a) amends section 31133(a)(1) to allow the Secretary to make contracts for inspections and investigations. Subsection (b) amends section 504 to allow a contractor, designated by the Secretary, to make inspections of equipment of a carrier and make inspections of records of carriers. Senate amendment Section 3411 of the Senate amendment provides for an identical provision. Conference substitute The conference adopts the provision. sec. 4007. waivers, exemptions, and pilot programs House bill Section 406 establishes a new process for granting regulatory exemptions, coupled with a process for the Secretary to carry out pilot programs. Subsection (a) replaces the current waiver authority in section 31315 with a new provision relating to authority and standards for exemptions (to replace waiver authority provided in section 31136(e) and 31315) and pilot programs. New subsection 31315(a) provides that the Secretary may grant to a person or class of persons a temporary exemption from regulations issued under chapter 313 or section 31136 if the Secretary finds such exemption would likely achieve a level of safety equal to or greater than the level that would be achieved absent such exemption. Exemptions shall be for a 2-year period and may be renewed. An exemption may be revoked if the terms and conditions are not met or if the exemption is not consistent with safety goals. The Secretary shall specify by regulation the procedures for requesting exemptions, but certain minimum requirements are set forth. Requests for exemptions shall be published in the Federal Register and the [[Page H3921]] public shall be given an opportunity to comment. Any exemptions granted shall be published in the Federal Register, along with terms and conditions of the exemption and effective period. Any exemptions denied shall be published in the Federal Register, with the reasons for denial. The Secretary shall act on each exemption request within 180 days or shall publish in the Federal Register why the decision will be delayed and an estimate of when the decision will be made. Terms and conditions of an exemption may be specified and appropriate state compliance and enforcement personnel shall be notified of an exemption provided. New subsection 31315(b) provides authority to the Secretary to conduct pilot programs to evaluate innovative approaches to motor carrier, vehicle, and driver safety. Pilots may include exemptions from regulations. Proposed pilot programs shall be published in the Federal Register and the public shall be given an opportunity to comment. Certain minimum program elements for pilot programs are specified. The Secretary may revoke participation in or terminate a pilot program. A report shall be issued to Congress at the conclusion of each pilot program. New subsection 31315(c) provides that, during the time period an exemption or pilot program is in effect, no State shall enforce a law or regulation that conflicts with or is inconsistent with an exemption or pilot program with respect to a person exercising the exemption or participating in the pilot program. Subsections (b) and (c) make conforming amendments. Senate amendment Section 3421 authorizes the Secretary to initiate programs to examine innovative approaches or alternatives to certain commercial motor carrier safety regulations. This section provides the Secretary broader discretion to grant waivers and exemptions from motor carrier and driver safety regulations which are necessary to develop performance based regulations and evaluate the effectiveness of existing regulations. This section recognizes that revising the waiver provisions in Section 31136 of Subchapter III, Safety Regulations and Section 31315 of Chapter 313, Commercial Motor Vehicle Operators is necessary because of the strict interpretation given to section 31136(e) by the D.C. Circuit Court of Appeals in____AHAS v. FHWA,____28 F.3d 1288 (1994), limiting the ability of the Secretary to issue waivers and exemptions. The Court found that the statutory language required the Secretary to determine, before issuing any waiver, that no diminution in safety would result, i.e., that it be determined beforehand there would be absolutely no increase in crashes as a result of the waivers. To deal with the decision, this section substitutes the term ``equivalent'' to describe a reasonable expectation that safety will not be compromised. In the absence of greater discretion to deal with waivers and exemptions and a new standard by which to judge them, the Congress would continue to be the only source to provide regulatory exemptions. The National Highway System Designation Act of 1995 (NHS) required the establishment of criteria and a program to grant and monitor exemptions from a broad range of safety regulations for commercial vehicles over 10,000 pounds but less than 26,000 pounds. This approach is a model for the exemption pilot program established by this section. The new waiver and exemption provision requires the Secretary to issue regulations that will outline a process for issuing waivers, procedures for conducting pilot projects or demonstration programs to evaluate the safety performance of a regulation or part of a regulation, and conditions under which exemptions from motor carrier safety regulations will be considered. This section distinguishes between the terms ``waiver'' and ``exemption,'' primarily by scope and duration. It provides the Secretary the authority to: issue a waiver for a relatively short term, for a specific purpose to a particular person or group of persons, under conditions defined in the waivers (e.g., circus vehicles under escort from railhead to exhibition site for the duration of the appearance); issue an exemption for up to two years, with a renewable two-year feature, limited to a class of persons, vehicles or circumstances (e.g., relief from certain requirements for well-defined operations with low risk histories and alternative management controls); and perform pilot projects or demonstration projects, using either a waiver or exemption or combination, to examine whether alternatives to regulatory requirements, particularly record keeping, are as effective in producing safety benefits. This section permits the Secretary to grant a waiver without advance public notice, but a record would have to be maintained. An exemption may be granted after notice and opportunity for comment and either a safety demonstration project or safety analysis was performed. The Secretary could initiate pilot projects or demonstration programs to examine whether a new requirement should become a regulation, whether performance under existing regulations is effective in producing the desired safety result, and whether alternative methods can produce the same safety benefit with less regulatory burden. Before any pilot project or demonstration program is undertaken, notice and opportunity for comment must be given to the public. It is expected the Secretary would issue regulations to provide that safety would be the primary consideration in deciding whether any waiver or exemption should be issued, or any pilot program initiated. Conference substitute The conference adopts a compromise provision, which includes basic provisions of both the House and Senate bills. Subsection (a) authorizes the Secretary to grant regulatory waivers if such action would be in the public interest and a level of safety is expected to be achieved that is equivalent to or greater than the level of safety obtained under regulatory compliance. A waiver would not be permitted to be granted beyond a 3 month period, must be limited in scope and circumstances for special, non-emergency situations, and could include conditions as deemed appropriate by the Secretary. The conference expects the Secretary would issue guidelines to provide for a reasonable process under which waivers may be requested and considered. Subsection (b) authorizes the Secretary to grant regulatory exemptions and Subsection (c) authorizes the Secretary to conduct pilot programs to evaluate innovative approaches and alternatives to regulations. The conference acknowledges that many motor carrier groups have sought statutory exemptions during the development of this legislation and such requests should be considered by the Secretary after evaluating their merits under this provision. The conferees believe the pilots authorized under this section should include a reasonable number of participants to enable the Secretary to assess the safety impact of the pilots' results. The conference expects the Secretary to use this authority judiciously. Pilot programs should be carefully designed and implemented to both protect the participants and the public, while yielding useful information to support future rulemaking proceedings and improve the efficiency of oversight activities. Sec. 4008. Safety Regulation House bill Subsection (a) of Section 407 amends section 31132(1)(A) to include in the definition of commercial motor vehicle those vehicles with a gross vehicle weight of at least 10,001 pounds (in addition to those vehicles which have such a rating). Section 31132(1)(B) is amended to refer to vehicles designed to carry 8 passengers, including the driver. Subsection (b) deletes section 31134 relating to the Commercial Motor Vehicle Safety Regulatory Review Panel which has completed it responsibilities. Subsection (c) deletes section 31140 relating to the Commercial Motor Vehicle Safety Regulatory Review Panel and its review of State laws and regulations. Subsection (d) amends section 31141 to delete references to the Commercial Motor Vehicle Safety Regulatory Review Panel and makes conforming and technical changes to the review of State laws and regulations by the Secretary. Subsections (e) and (f) make technical amendments to section 31142. Senate amendment The Senate amendment includes similar provisions. Section 3411(f) amends the definition of commercial motor vehicle in Section 31132(1) of title 49, U.S.C., to include vehicles with a gross vehicle weight of at least 10,001 pounds (in addition to the gross vehicle weight rating). Section 3411(a) repeals the current review panel process that reviews state laws for compatibility with Federal commercial motor vehicle safety regulations. Section 3411(b) repeals the panel procedures and replaces them with a review process to be administered by the Secretary. Conference substitute The conference follows the House approach. Sec. 4009. Safety Fitness House bill Subsection (a) of Section 419 of the House bill amends section 31144 to revise procedures and provisions relating to safety fitness determinations of owners and operators. The Secretary is directed to determine whether owners and operators are fit to safely operate commercial motor vehicles, periodically update determinations, make the determinations available to the public, and prescribe by regulation penalties for violations. The Secretary is to maintain by regulation a process to determine fitness. An owner or operator who the Secretary determines is not fit may not operate commercial motor vehicles in interstate commerce beginning on the 61st day after the date of such fitness determination and until the Secretary determines the owner or operator is fit. In the case of those transporting passengers or hazardous materials, an owner or operator who the Secretary determines is not fit may not operate in interstate commerce beginning on the 46th day after the date of such fitness determination and until the Secretary determines the owner or operator is fit. With the exception of those transporting passengers or hazardous materials, the Secretary may allow an owner or operator to continue to operate beyond the 61st day if the owner or operator is making a good faith effort to become fit. The Secretary must review the determination that an owner or operator is unfit not [[Page H3922]] later than 45 days after the unfit owner or operator requests a review, and within 30 days in the case of owners or operators transporting passengers or hazardous materials. A department, agency, or instrumentality of the U.S. Government may not use to provide any transportation service an owner or operator determined unfit by the Secretary, until the Secretary determines such owner or operator is fit. Subsection (b) makes a conforming amendment to section 5113 of title 49. Senate amendment Section 3411(d) directs the Secretary to maintain in regulation a procedure for determining the safety fitness of owners and operators of commercial motor vehicles. The section requires the procedures to include the requirements that owners and operators of commercial motor vehicles must meet to demonstrate safety fitness; a means used to decide whether the owners, operators, or other persons meet safety fitness requirements; and deadlines for action by the Secretary in making fitness determinations. Subsection (d) prohibits a motor carrier that fails to meet the safety fitness requirements established by the Secretary from operating in interstate commerce. The subsection permits the Secretary to extend the time limit granted for a motor carrier to come into compliance after a determination that the motor carrier fails to meet safety fitness requirements. Conference substitute The conference follows the House approach. The conference requires the Secretary to periodically update safety fitness determinations of owners and operators and to make such final safety fitness determinations readily available to the public. The publication of final safety fitness determinations does not preclude the ability of the Secretary to review the safety fitness of owners and operators. However, the conference would not expect preliminary data analysis or preliminary safety fitness information to be publicly available. section 4010. repeal of certain obsolete miscellaneous authorities House bill Section 409 repeals subchapter IV (sections 31161 and 31162) which are unnecessary and burdensome provisions. Senate amendment The Senate bill includes an equivalent provision (Sec. 3411(c)(2)). Conference substitute The conference adopts the provision. section 4011. commercial vehicle operators House bill Subsection (a) of Section 410 amends the definition of commercial motor vehicle in section 31301 to include vehicles with a gross vehicle weight of at least 26,001 pounds (in addition to gross vehicle weight rating). Subsection (b) amends section 31302 to clarify that an individual may operate commercial motor vehicle only if the individual has a valid commercial driver's license (CDL) and that an operator may have only one driver's license at any time. Subsection (c) amends section 31308(2) to require that CDLs must include unique identifiers to minimize fraud and duplication. Subsection (d) amends section 31309 to clarify that the commercial drivers license information system is maintained by the Secretary and shall be maintained in coordination with activities carried out under section 31106. Certain other clarifying and technical amendments are made. Subsection (e) repeals obsolete state grant programs regarding testing and licensing of commercial vehicle drivers. Senate amendment The provisions are similar. Section 3212(f)(1) amends the definition of commercial motor vehicle in each place it appears in section 31301 to include vehicles with a gross vehicle weight of at least 26,001 pounds (in addition to gross vehicle weight rating). Section 3212(f)(2) inserts the word ``is'' at two places section 31301 subparagraph (C). Section 3416(b) amends the definition with respect to motor carriers of passengers and section 3416(c) provides that regulations would apply to such carriers 12 months after the date of enactment, unless the Secretary determines it would be appropriate to exempt them. Conference substitute The conference adopts the House approach. sec. 4012. utility service commercial motor vehicle drivers House bill The House bill contains no comparable provision. Senate amendment Section 3424 provides a process for an emergency exemption to allow utility drivers to serve customers during times of emergencies declared by elected State or local officials and provides for monitoring of any safety impacts associated with such exemptions. Conference substitute The conference adopts the Senate provision. sec. 4013. participation in international registration plan and international fuel tax agreement House bill Section 413 of the House bill repeals obsolete sections of chapter 317 (sections 31702, 31703, and 31708) relating to a working group and grants to encourage participation in the International Fuel Tax Agreement and International Registration Plan. Senate amendment Section 3414 of the Senate bill is identical to the House provision. Conference substitute The conference adopts the provision. sec. 4014. safety Performance history of drivers; limitation on liability House bill No comparable provision. Senate amendment Section 3412(g) of the Senate bill amends Chapter 5 of Title 49, United States Code. The provision bars an action for defamation, invasion of privacy, or interference with a contract that is based on the furnishing or use of safety performance records of an individual under consideration for employment as a commercial motor vehicle driver against a person who has complied with such a request or his agents or insurers. The bar does not apply to a motor carrier requesting the records unless the motor carrier, the person complying with the request and their agents have taken all precautions reasonably necessary to ensure the accuracy of the records and to protect the records from disclosure to any person, except for their insurers, not directly involved in forwarding the records or deciding whether to hire that individual, and complied fully with all the regulations issued by the Secretary of Transportation in using and furnishing the records. The bar also does not apply to a person complying with a request unless the motor carrier requesting the records, the complying person, and their agents have taken all reasonably necessary precautions to ensure the accuracy of the records and to protect the records from disclosure to any person, except for their insurers, not directly involved in forwarding the records or deciding whether to hire that individual. State and local law is preempted to the extent that it prohibits, penalizes, or imposes liability for furnishing or using safety performance records in accordance with regulations issued by the Secretary. Conference substitute The conference adopts the Senate provision with modification. The conference agreement adds a requirement that as a part of the rulemaking the Secretary is conducting under section 114 of the Hazardous Materials Transportation Authorization Act of 1994 (108 Stat. 1677-1678) to amend Section 391.23 of title 49, Code of Federal Regulations, that the Secretary provide protection for driver privacy and establish procedures for review, correction, and rebuttal of the safety performance records of a driver. The conference further directs the Secretary to complete the rulemaking by January 31, 1999. The liability waiver will become effective on the same date. sec. 4015. penalties House bill No comparable provision. Senate amendment Section 3412 of the Senate bill amends section 521 of Title 49, United States Code. This section excepts from the penalties provision of section 521(b)(1) ``reporting and record keeping violations''. This section also strikes ``fix a reasonable time for abatement of the violation'' from subparagraph (A). Section 521(b)(2) is amended by deleting ``reckless disregard'' and ``gross negligence'' from the liability standard for the penalty section. A new subsection (B) is added entitled ``Recordkeeping and Reporting Violations'' which specifies penalties for such violations. Conference substitute The conference adopts the Senate provision. sec. 4016. authority over charter bus transportation House bill No comparable provision. Senate amendment Section 3417 of the Senate bill amends Section 14501(a) of Title 49, United States Code. The provision strikes the authority of the states to regulate intrastate and interstate charter bus transportation. Conference substitute The conference adopts the Senate provision with modification. A clarifying provision is included to ensure that states may continue to regulate safety with respect to motor vehicles and to impose highway route controls or limitations based on the size or weight of the motor vehicle or with regard to minimum amounts of financial responsibility relating to insurance requirements. The conference also notes that the provision does not limit a State's ability to regulate taxicab service or limousine livery service. sec. 4017. telephone hotline for reporting safety violations House bill Subsection (a) of Section 414 directs the Secretary to establish, for a period of at least 2 years, a nationwide, toll-free telephone system to be used by drivers of commercial motor vehicles and others to report potential violations of Federal motor carrier safety regulations and other laws and regulations relating to safety. Subsection (b) provides that information received shall be used in setting priorities for safety audits and other enforcement activities. [[Page H3923]] Subsection (c) provides that a person reporting a potential violation shall be provided the protections of section 31105. Subsection (d) provides that up to $300,000 from administrative expenses may be used per fiscal year to carry out this section. Senate amendment No comparable provision. Conference substitute The conference adopts the House provision with minor modifications and authorizes the Secretary to spend no more than $250,000 of funding available for general operating expenses in any fiscal year to carry out this directive. sec. 4018. insulin treated diabetes mellitus study House bill Subsection (a) of Section 415 directs the Secretary of Transportation to determine within 18 months whether a safe, practicable and cost-effective screening, operating, and monitoring protocol could likely be developed for insulin treated diabetes mellitus individuals who want to operate commercial motor vehicles in interstate commerce that would ensure a level of safety equal or greater than that achieved with the current prohibition on such drivers. Subsection (b) directs the Secretary to compile and evaluate research and other information, to consult with States who have developed and are implementing a screening process, to evaluate the Department's policy and actions to permit individuals with insulin treated diabetes mellitus to operate in other modes of transportation, and to consult with certain groups. Subsection (c) directs that, if it is determined that a protocol can be developed, the Secretary shall report to Congress the basis for such determination. Subsection (d) directs that, if it is determined that a protocol can be developed, the Secretary shall report to Congress on the elements to be included in such a protocol and promptly initiate a rulemaking implementing the protocol. Senate amendment No comparable provision. Conference substitute The conference adopts the House provision with the addition of a requirement that the Secretary of Transportation also assess any legal consequences of permitting insulin treated diabetes mellitus individuals to drive commercial motor vehicles in interstate commerce. The standard in subsection (a) is intended to ensure that insulin treated diabetes mellitus individuals be held to a level of safety comparable to that required of other qualified commercial drivers and not to a higher standard. sec. 4019. performance-based cdl testing House bill Subsection (a) of Section 416 directs the Secretary of Transportation to review the procedures established and implemented by States for testing operators of commercial motor vehicles to determine if the system accurately reflects an individual's knowledge and skills as a commercial motor vehicle operator and to identify methods to improve testing and licensing standards, including the benefits and costs of a graduated licensing system. Subsection (b) provides that, not later than one year following such review, the Secretary shall issue regulations under section 31305 of title 49, relating to CDLs which reflect the results of the review. Senate amendment Section 3412 amends Section 31305(a) by giving the Secretary of Transportation the authority to establish performance-based testing and licensing standards that more accurately measure and reflect an individual's knowledge and skills as an operator. Conference substitute The conference adopts the House provision. sec. 4020. post-accident alcohol testing House bill Section 417 requires the Secretary to conduct a study of the feasibility of utilizing emergency responders and law enforcement officers for conducting post-accident alcohol testing of commercial motor vehicle operators under section 31306 of title 49, United States Code. Senate amendment No comparable provision. Conference substitute The conference adopts the House provision with modification. The modifications require the study to address the feasibility of utilizing law enforcement officers for conducting post-accident alcohol testing, as well as the ability of motor carrier employers to meet the current post-accident alcohol testing requirements imposed under section 31306. The reference in the House provision to ``emergency responders'' is deleted from the study requirements. Sec. 4021. Driver Fatigue House bill Subsection (a) of Section 418 directs the Secretary, as part of ongoing activities relating to fatigue of commercial motor vehicle operators, to encourage the development of technologies that may aid in reducing fatigue. Subsection (a)(2) sets forth factors to be considered, including the degree to which the technology will be cost efficient, can be used in various climates, and will reduce emissions, conserve energy, and further other transportation goals. Subsection (a)(3) provides that funds made available under subparagraphs (F) through (I) of section 127(a)(3) of the bill may be used to carry out this section. Subsection (b) directs the Secretary to review potential safety benefits of the use of non-sedating antihistamines by operators of commercial vehicles and to consider encouraging the use of such antihistamines. Senate amendment No comparable provision. Conference substitute The conference adopts the House provision with minor modifications. Sec. 4022. Improved Flow of Driver History Pilot Program House bill No comparable provision. Senate amendment Section 3406 requires the Secretary of Transportation to carry out a pilot program in cooperation with 1 or more States to improve upon the timely exchange of pertinent driver performance and safety records data to motor carriers. The program shall: (1) determine to what extent driver performance records data, including relevant fines, penalties and failure to appear for a hearing or trial, should be included as part of any information systems; (2) assess the feasibility, costs, safety impact, pricing impact, and benefits of record exchanges; and (3) assess methods for the efficient exchange of driver safety data available from existing State information systems and sources. Conference substitute The conference adopts the Senate provision with the proviso that at the end of the pilot program the Secretary shall begin, if appropriate, a rulemaking to revise the information system under section 31309 of Title 49, United States Code. Sec. 4023. Employee Protections House bill No comparable provision. Senate amendment Section 3411(g) requires the Secretary of Transportation, in conjunction with the Secretary of Labor to study the effectiveness of existing statutory employee protections provided for under section 31105 of title 49, United States Code. Conference substitute The conference adopts the Senate provision. Sec. 4024. Improved Interstate School Bus Safety House bill Subsection (a) of Section 408 amends section 31136 to provide that federal safety regulations apply to interstate school bus operations by local educational agencies. Subsection (b) directs the Secretary to submit a report within two years describing the status of compliance and activities of the Secretary or States to enforce the requirements. Senate amendment No comparable provision. Conference substitute The conference adopts an alternative provision to instruct the Secretary to begin a rulemaking to determine whether or not relevant commercial motor carrier safety regulations issued under section 31136 should apply to all interstate school transportation operations. Sec. 4025. Truck Trailer Conspicuity House bill Section 421 requires the Secretary of Transportation to issue, not more than one year after enactment of this Act, a final rule regarding the Conspicuity of trailers manufactured before December 1, 1993. In so doing, the Secretary is required to consider, at a minimum, the following: (1) the cost-effectiveness of any requirement to retrofit trailers manufactured before December 1, 1993; (2) the extent to which motor carriers have voluntarily taken steps to increase equipment visibility; regulatory flexibility to accommodate differing trailer designs and configurations, such as tank trucks. Senate amendment No comparable provision. Conference substitute The conference adopts the House provision. The conference however stresses that this provision does not require the Secretary to order a retrofit of any trailers manufactured before December 1, 1993. Sec. 4026. DOT Implementation Plan House bill Section 422 requires the Secretary of Transportation to develop and submit to Congress a plan for implementing authority (if subsequently provided by law) to: (1) investigate and bring civil actions to enforce Chapter 5 of Title 49, United States Code when violated by shippers, freight forwarders, brokers, consignees, or persons (other than rail carriers, motor carriers, motor carriers of migrant workers, or motor private carriers); (2) assess civil or criminal penalties against a person who knowingly aids, abets, counsels, commands, induces, or procures a violation of a regulation or order under chapter 311 or section 31502. The development of the plan requires the Secretary to consider: in what circumstances the Secretary would exercise the new authority; how the Secretary would determine that [[Page H3924]] shippers, freight forwarders, brokers, consignees, or other persons committed violations; what procedures would be necessary during investigation to ensure the confidentiality of shipper contract terms; the impact of the new authority on the Secretary's resources. Senate amendment No comparable provision. Conference substitute The conference report directs the Secretary to assess the scope of the problem of shippers, freight forwarders, brokers, consignees, or other persons encouraging violations of chapter 5 of title 49 and after the assessment the Secretary may submit to Congress a plan for implementing authority (if subsequently provided by law) to investigate and bring civil actions to enforce chapter 5 of title 49, United States Code. The report to Congress will contain the elements required of it in the House bill as well as a request of what, if any, educational activities the Secretary would conduct for persons who would be subject to the new authority. Sec. 4027. Study of Adequacy of Parking Facilities House bill Section 123 requires the Secretary of Transportation to conduct a study to determine the location and quantity of parking facilities at commercial truck stops and travel plazas and public rest areas that could be used by motor carriers to comply with Federal hours of service rules. The study must be reported to Congress within 36 months. The study shall include an inventory of current facilities serving the National Highway System, analyze where shortages exist or are projected to exist, and propose a plan to reduce the shortage. The study is funded under Section 104(a) of Title 23, United States Code, for $500,000 per fiscal year for fiscal years 1998, 1999 and 2000. Senate amendment Section 3415 is similar to the House bill with the exception of the funding provision. Conference substitute The conference adopts the House provision. The Secretary would be permitted to allocate no more than $500,000 for each of the fiscal years 1999, 2000, 2001. sec. 4028. qualifications of foreign motor carriers House bill No comparable provision. Senate amendment Section 3419 of the Senate bill requires the Secretary of Transportation, within 90 days after enactment of the Act, to review the qualifications of foreign carriers whose applications for authority to operate in the United States have not been processed due to the moratorium on the granting of authority to foreign carriers to operate in the United States. Conference substitute The conference adopts the Senate provision with the proviso that the review does not constitute a finding by the Secretary under section 13902 of title 49, United States Code, that a motor carrier is willing and able to comply with requirements of such section. sec. 4029. Federal Motor Carrier safety inspectors House bill No comparable provision. Senate amendment Section 3418 of the Senate bill requires the Secretary of Transportation to maintain the level of Federal motor carrier safety inspectors for international border commercial vehicle inspections as in effect on September 30, 1997, or provide for alternative resources and mechanisms to ensure an equivalent level of commercial motor vehicle safety inspections. Conference substitute The conference adopts the Senate provision with minor modifications. sec. 4030. school transportation safety House bill Section 336 of the House bill requires the Secretary of Transportation to begin not later than 3 months after the date of the enactment of the Act a study of the safety issues attendant to transportation of school and school-related activities by various transportation modes. Senate amendment Section 3425 of the Senate bill requires the Secretary to agree with the Transportation Research Board on a study of the issues attendant to the transportation of school children to and from school and school-related activities by various transportation modes. The TRB shall consider available crash injury data, and vehicle design and driver training in conducting the study and the panel conducting the study shall include representatives of highway safety organizations, school transportation, mass transportation and bicycling organizations. Conference substitute The conference adopts the Senate provision with the proviso that a report to the Congress on the results of the study is to be transmitted not later than 12 months after the Secretary enters into an agreement with the Transportation Research Board. sec. 4031. designation of new mexico commercial zone House bill No comparable provision. Senate amendment Section 3703 of the Senate bill establishes a commercial zone in New Mexico comprised of Dona Ana and Luna Counties. Conference substitute The conference adopts the Senate provision with the proviso that the Secretary of Transportation shall consult with other Federal agencies that have responsibilities over traffic between the United States and Mexico. The State of New Mexico is required to submit within three months of the date of enactment a plan to the Secretary describing how the state will monitor commercial motor vehicle traffic and enforce safety regulations. The conference is particularly concerned that motor carriers within the zone comply with hours-of- service and drug and alcohol testing requirements and that unauthorized carriers do not operate beyond the commercial zone limits. sec. 4032. effects of mcsap grant reductions on states House bill No comparable provision. Senate amendment Section 3423 of the Senate bill allows States which did not receive its full Motor Carrier Safety Assistance Program during fiscal years 1996 and 1997 to enter into cooperative agreements with the Secretary of Transportation to evaluate the safety impact, costs, and benefits of allowing such states to continue to participate fully in the Motor Carrier Safety Assistance Program, then the Secretary shall allocate to those States full amount of funds for fiscal years 1998, 1999, 2000, 2001, 2002 and 2003. Conference substitute The conference report requires the Secretary to study the effects of reductions in MCSAP grants due to nonconformity of State intrastate laws and regulations with Federal interstate requirements. The study is to consider (1) national uniformity and the purposes of the MCSAP program; (2) State motor carrier, commercial motor vehicle, and driver safety oversight and enforcement capabilities; and (3) the safety impact, costs and benefits of a State's full participation in the program. A report to Congress is to be submitted not later than 2 years after the date of enactment of this Act. Interim Border Safety Improvement Program House bill Section 411 establishes an interim border safety improvement program to improve commercial motor vehicle safety in the vicinity of the borders between the U.S. and Canada and the U.S. and Mexico. The Secretary may expend funds and provide grants to States, local governments, organizations and others for the employment and training of personnel to enforce safety regulations at the border, for the development of data bases and communications systems, and for education and outreach initiatives. The Federal share shall be 80 percent for the first two years that a State receives a grant, 50 percent for the third and fourth years, and 25 percent for the fifth and sixth years. Subsection (g) provides annual authorizations for the program. Of the funds made available for the coordinated border infrastructure and safety program under section 116 of the bill, $20 million in fiscal year 1998 and $15 million in each of fiscal years 1999 through 2003 shall be available for this program. Senate amendment No comparable provision. Conference substitute The conference does not include a provision. The conference addresses border safety matters under Section 4003 and authorizes the Secretary to dedicate up to five percent of funding made available to carry out the Motor Carrier Safety Assistance Program for States, local governments, and other persons to carry out border commercial motor vehicle safety programs and enforcement activities and projects. Hazardous Materials Transportation Regulation and Farm Service Vehicles House bill Sec. 420. Subsection (a) amends section 5117(d)(2) of title 49 regarding the transportation of hazardous materials to add a new subparagraph (C) which provides that States are not prohibited from providing an exception from requirements relating to placarding, shipping papers, and emergency telephone numbers for the private motor carriage in intrastate transportation of an agricultural production material. A State must certify that the exception is in the public interest, the need for the exception, and that the State shall monitor the exception and take such measures necessary to ensure that safety is not compromised. Subsection (b) defines the term ``agricultural production material.'' Senate amendment Section 3208 of the Senate bill as part of the reauthorization of the Hazardous Materials Transportation Act authorizes the Secretary to carry out pilot programs to examine innovative approaches or alternatives to regulations for private intrastate motor carriage of agricultural production materials. The Secretary is prohibited from carrying out a pilot program if it would pose an undue risk to public health and safety. Furthermore, the Secretary shall require that the pilot project contain safety measures designed to achieve a level of safety equivalent [[Page H3925]] to or greater than the level that would otherwise be achieved. The Secretary is directed to terminate participation immediately of any carrier that fails to comply with the terms and conditions of the pilot or to terminate the entire pilot if the Secretary determines it has resulted in a lower level of safety. Conference substitute The conference does not include a provision. Motor Carrier and Driver Safety Research House bill The House bill contains no comparable provision. Senate amendment Section 3407 of the Senate bill provides not less than $10 million per year for programs designed to advance motor vehicle and driver safety. The provision requires grants of more than $250,000 to be awarded based on a competitive selection. The Secretary shall submit annual reports to Congress on the activities conducted under this section. Conference substitute The conference does not include a provision. The Secretary is authorized to conduct motor carrier research in the programs established or amended in Title V of this Act. Commercial Motor Vehicle Safety Advisory Committee House bill The House bill contains no comparable provision. Senate amendment Section 3420 of the Senate bill authorizes the Secretary to establish an advisory committee to provide advice and recommendations on regulatory issues. Conference substitute The conference does not include a provision. Commercial Motor Vehicle Safety Studies House bill The House bill contains no comparable provision. Senate amendment Section 3422 of the Senate bill directs the Secretary to conduct a study of the impact on safety and infrastructure of tandem axle commercial motor vehicle operations in States that permit the operation of such vehicles in excess of Interstate weight limits. Further, the Secretary should enter into cooperative agreements with such States to collect weigh-in-motion data necessary for the study. The Secretary shall report to Congress within 2 years on the results of the studies and may not withhold highway construction funds from States for violations of grandfathered tandem axle weight limits. Conference substitute The conference does not include a provision. Hazardous Materials Transportation Act Reauthorization House bill The House bill contains no comparable provision. Senate amendment Subtitle B reauthorizes the Hazardous Materials Transportation Act, as requested by the Administration. The Subtitle makes several changes in the hazardous materials transportation program as administrated by the DOT Research and Special Programs Administration. Conference substitute The conference does not include a provision. TITLE V--TRANSPORTATION RESEARCH subtitle c--intelligence Transportation Systems Senate amendment Section 2101 designates the name of Subtitle B of chapter 5 as the ``Intelligent Transportation Systems Act of 1997'' (ITS Act). House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with a notification revising the date in the title. The substitute language designates the name of Subtitle B as the ``Intelligent Transportation Systems Act of 1998.'' Findings Senate amendment Sec. 2102 lists Congress' findings with respect to the ITS program. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with modifications. The substitute consolidates the findings in the Senate bill into two findings retaining the reference to investments in intelligence transportation systems made under the Intermodal Surface Transportation Efficiency Act of 1991 (105 State. 1914 et seq.) and the principle that continued investment is needed in this areas to realize fully the benefits of intelligence transportation systems technology. Goals and Purposes Senate amendment Section 521, 23 U.S.C., as proposed, sets forth the purposes of the ITS Act of 1997, which are--(1) to provide for accelerated deployment of proven technologies and concepts and increased Federal commitment to improving surface transportation safety, and (2) to expedite deployment and integration of basic ITS services for consumers of passenger and freight transportation across the nation. House bill Subsection 652(b) establishes the goals of the ITS program including enhanced efficiency of the transportation system; enhanced safety; enhancement of the environment; a program that includes all users; improved accessibility; the development of a technology base; improved ability to respond to national emergencies; and the promotion of data sharing. Conference substitute The Conference adopts a goals and purposes provision incorporating key concepts from both the House goals provision and Senate purposes provision. The substitute language identifies as goals of the ITS program the following objectives most of which were included in both bills: enhancement of surface transportation efficiency and facilitation of intermodalism and international trade; improvement of national transportation safety; protection and enhancement of the natural environment; accommodation of the needs of all surface transportation systems users; improved responsiveness to emergencies and natural disasters. The substitute language also identifies ITS program purposes representing objectives with a more short-term focus than the goals. The list of purposes, as follows: is drawn primarily from the purposes section in the Senate bill: to expedite deployment and integration of ITS; to ensure local transportation officials have adequate knowledge of ITS technologies for transportation planning and ITS operations and maintenance purposes; to improve regional cooperation; and to promote the use of private resources. General Authorities and Requirements Scope Senate amendment The Senate bill contains no comparable provision House bill Subsection 652(a) directs the Secretary to conduct a research, development, and deployment program for ITS. Conference substitute The Conference adopts the House provision. Policy Senate amendment Subsection 530(b), 23 U.S.C., as proposed, prohibits the Secretary from funding any ITS operational test or deployment that competes with a similar privately funded project. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision with modifications. The substitute moves this provision from the Funding Limitations section in the Senate bill to the General Authorities and Requirements section in the substitute. The Senate provision is also revised to state that as a general policy federally-funded projects shall not displace public- private partnerships or private sector investment. Cooperation with Governmental, Private, and Educational Entities Senate amendment Paragraph 523(b)(2), 23 U.S.C., as proposed, directs the Secretary in carrying out the intelligent transportation system program to maximize the involvement of the private section, college and universities, Federal laboratories, and State and local governments. House bill Paragraph 653(a)(1) directs the Secretary to carry out the intelligent transportation system program in cooperation with State and local governments, the private sector, colleges and universities, including historically black colleges an universities and other majority institutions of higher education. Conference substitute The Conference adopts the House provision with a modification. The Federal laboratories are added to the list of entities the Secretary is directed to consult with carrying out this program. Consultation with Federal Officials Senate amendment Paragraph 523(b)(1), 23 U.S.C., as proposed, requires the Secretary to consult with heads of other interested Federal departments and agencies. House bill Paragraph 653(2) directs the Secretary to consult with the Secretary of Commerce, the Secretary of the Treasury, the Administrator of the Environmental Protection Agency, the Director of the National Science Foundation, and the heads of other Federal departments and agencies. Conference substitute The Conference adopts the House provision. [[Page H3926]] Technical Assistance, Training, and Information Senate amendment Subsection 524(a), U.S.C., as proposed, directs the Secretary to carry out a comprehensive program of intelligent transportation system research, development, operational testing, technical assistance and training, and other related activities. House bill Subsection 655(a) allows the Secretary to provide technical assistance, training, and information to State and local governments for intelligent transportation system projects. Conference substitute The Conference adopts the House provision. Transportation Planning Senate amendment The Senate bill contains no comparable provision. House bill Subsection 655(b) allows the Secretary to use funds to better integrate intelligent transportation systems into State and metropolitan planning. Conference substitute Information Clearinghouse Senate amendment Subsection 524(d), 23 U.S.C., as proposed, requires the Secretary to maintain a repository for technical and safety data collected through federally funded intelligent transportation system projects. The Secretary may delegate this responsibility to an entity outside of the Department of Transportation. House bill Subsection 653(d) requires the Secretary to establish and maintain a repository for technical and safety data collected through federally funded intelligent transportation system projects. The Secretary may delegate this responsibility to an entity outside of the Department of Transportation. Conference substitute The Conference finds provisions in both the House and Senate bills to be substantively equivalent. Advisory Committees Senate amendment Section 532, 23 U.S.C., as proposed, requires the Secretary to use one or more advisory committees, and specifies that any advisory committee so used shall be subject to the Federal Advisory Committee Act (5 U.S.C. App.). House bill Subsection 653(e) allows the Secretary to use advisory committees when carrying out the intelligent transportation systems program. This subsection also specifies that the Federal Advisory Committee Act applies and that any advisory committees on intelligent transportation systems shall be funded through specific provisions in Appropriations Acts and from funds allocated for research, development, and implementation of the intelligent transportation systems program. Conference substitute The Conference adopts the House provision with a modification: the direction regarding funding for advisory committees is dropped. Procurement Methods Senate amendment Subsection 523(c), 23 U.S.C., as proposed, directs the Secretary to develop technical assistance and guidance to assist State and local agencies in selecting appropriate methods of procurement for intelligent transportation system projects, including innovative and nontraditional methods. House bill Subsection 653(h) directs the Secretary to develop technical assistance and guidance to assist State and local agencies in selecting appropriate methods of procurement for intelligent transportation system projects, including innovative and nontraditional methods. This subsection also directs contracting officials to use a standard risk assessment methodology to reduce the cost, schedule, and performance risks associated the development and use of intelligent transportation systems software. Conference substitute The Conference adopts the House provision with a modification: Information Technology Omnibus Procurement is listed as a type of innovative or nontraditional procurement method addressed by this subsection. Evaluations Senate amendment Subsection 524(c), 23 U.S.C., as proposed, directs the Secretary to establish guidelines and requirements for the evaluation of intelligent transportation systems operational tests and deployment projects. These guidelines and requirements are to ensure objectivity and independent of the evaluator. This subsection also limits the percentage of test or project funds which may be spent on evaluations and specifies different percentages for projects and tests of different sizes. This subsection also specifies that the Paperwork Reduction Act, chapter 35 of title 44, U.S.C., shall not apply to any survey, questionnaire, or interview conducted in connection with the evaluation of any test or project carried out under this program. House bill Subsection 653(d) directs the Secretary to issue guidelines and requirements for the evaluation of intelligent transportation systems operational tests. These guidelines and requirements are to ensure objectivity and independence of the evaluator. Operational tests need to be designed for the collection of data and the preparation of reports to permit objective evaluation of the success of the tests and the derivation of cost-benefit information and life-cycle costs that will be useful to others contemplating the purchase of similar systems. Conference substitute The Conference adopts the Senate provision with modifications. The Secretary is directed to issue, rather than establish, the guidelines and requirements and the funding limitation provisions are replaced with a requirement that the guidelines and requirements issued under this subsection also establish appropriate evaluation funding levels. The exemption from the Paperwork Reduction Act is retained. National ITS Program Plan Senate amendment Paragraph 524(b)(5), 23 U.S.C., as proposed, requires the Secretary to submit a 6-year plan to Congress within 1 year of enactment and annually thereafter. This plan is to specify program goals, objectives, and milestones and progress made in meeting them. House bill Section 654 requires the Secretary to maintain and update a National ITS Program Plan developed by the Department and the Intelligent Transportation Society of America. This section specifies the scope and required components of the plan including program goals, objectives, and milestones and how specific programs and projects relate to those goals over 5, 10, and 20-year time frames. The plan is also to provide for the development of standards to promote interoperability and establish a process for incorporating intelligent transportation systems technologies into more broad-based surface transportation systems. Reporting to Congress under this section may be consolidated with the integrated Surface Transportation Research and Development Strategic Plan. Conference substitute The Conference adopts the House provision with several modifications. The goals, objectives and milestones cadre to be established for both research and deployment of intelligent transportation systems and consideration of a 20- year time frame for these goals is not required. The plan is to identify activities relevant to the development of standards, including actions that will lead to the establishment of critical standards. The substitute requires that principal findings made in carrying out the plan be transmitted and updated as part of the Integrated Surface Transportation Research and Development Strategic Plan. National Architecture and Standards Senate amendment Section 529, 23 U.S.C., as proposed, requires the Secretary to develop, implement, and maintain a national architecture to guide nationwide deployment of intelligent transportation systems and to set standards and protocols to promote the widespread use of these technologies and to ensure interoperability. The Secretary is authorized to use standards-setting organizations in carrying out section. The section requires the Secretary to identify critical standards needed to ensure interoperability on a nationwide basis. If one of these critical standards is not adopted by January 1, 2001, the Secretary is required to establish a provisional standard, but a provisional standard would only remain in effect until the appropriate standards-setting organization adopted and published a standard concerning the same subject matter. In addition, the Secretary may waive this requirement as long as a report on the reasons for the waiver and impacts of a delay in setting a particular standard is submitted to Congress. For each standard subject to a waiver, the Secretary is required to submit a progress report to Congress every six months. This section also prohibits the use of funds made available from the Highway Trust Fund on intelligent transportation system technology if the technology does not comply with each relevant provisional and completed standard, but exception is made for intelligent transportation systems deployments already in place. Finally, this section directs the Secretary of Commerce and the Federal Communications Commission to allocate spectrum for the near-term establishment of a dedicated short-range vehicle-to-wayside wireless standard and any other spectrum critically needed for the intelligent transportation systems program. House bill Subsection 653(b) requires the Secretary to develop, implement, and maintain of a national architecture to guide nationwide deployment of intelligent transportation systems and to set standards and protocols to promote the widespread use of these technologies and to ensure interoperability. The Secretary is authorized to use standards-setting organizations in carrying out this subsection. This subsection directs the Secretary of Transportation, in consultation with the Secretary of Commerce, the Secretary of Defense, and the Federal Communications Commission, to take all necessary steps to secure spectrum for the near-term establishment of a dedicated short-range vehicle to wayside wireless standard. [[Page H3927]] Conference substitute The Conference adopts the Senate provision with modifications. In establishing the national architecture along with the standards and protocols, the Secretary is to comply with section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 11 Stat. 783). This provision requires all Federal agencies and departments to use technical standards that are developed or adopted by voluntary consensus standards bodies, unless to do so would be inconsistent with applicable law or otherwise impractical. It is clarified that the report identifying critical standards and their stage of development is to be submitted to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure and the Committee on Science of the House of Representatives. The Secretary is authorized to establish provisional standards if such action is necessary to ensure progress in achieving the purposes identified in this section for establishing a national architecture and standards and the Secretary is required to adopt a provisional standard if a standard identified as critical is not set by January 1, 2001. But, the Secretary may waive this requirement upon finding that additional time would be productively used or establishment of a provisional standard would be counter- productive. Provisional standards are to be published and will remain in effect until applicable standards to replace them are set by the appropriate standards development organization. Waivers of the provisional standard requirement and withdrawals of such waivers are also to be published. The requirement that intelligent transportation systems projects funded from the Highway Trust Fund must conform to the national architecture and applicable standards is retained. The exceptions for operations and maintenance of intelligent transportation systems projects already in existence is retained as is the exception, at the discretion of the Secretary, for the upgrade or expansion of such projects. Another exception for projects designed to achieve specific research objectives, at the discretion of the Secretary, is added. The Federal Communications Commission is directed to consider, in consultation with the Secretary of Transportation, the spectrum needs of intelligent transportation systems and is required to complete a rulemaking considering the allocation of spectrum for intelligent transportation systems by January 1, 2000. Research and Development Senate amendment Section 524, 23 U.S.C., as proposed, requires the Secretary to undertake comprehensive research, development, testing, and technical assistance to carry out the purposes of the intelligent transportation systems programs. This research and development is to advance development of an integrated intelligent vehicle program and an integrated intelligent infrastructure program to advance roadway safety and efficiency systems, mobility and the quality of the environment. This section requires activities to be consistent with the national architecture and priorities include crash avoidance and the integration of air bag technology with other on-board safety systems. The federal share for these projects is 80 percent, but the Secretary apply a federal share of 100 percent to high-risk projects. Subsection (f) includes limitations on the amounts of funding that may be used for research activities that improve crash avoidance and the integration of airbags and other on-board safety systems, advance development of an automated highway system, and activities that improve traffic management. House bill Subsection 655(c) authorizes the Secretary to fund research and operational tests regarding intelligent transportation systems technology. Subsection 655(d) allows the Secretary to use funds to conduct research and demonstrations of integrated vehicle and roadway safety systems, including infrastructure-based, in-vehicle, and integrated collision avoidance systems. The section includes research on advanced traffic management technologies, including the use of fiber optic cables and video, to monitor and control traffic flow and volume; research on magnetics and advanced materials; fundamental research on the science of the driving process and other human factors to complement the applied research efforts of the industry in this area; and research on the impact of cold weather climates on ITS in areas such as traction enhancement while on ice and snow, braking, and visibility enhancement both of intersections and sign. Conference substitute The Conference adopts a blend incorporating aspects of both the House and Senate provisions. This section requires the Secretary to carry out a comprehensive program of intelligent transportation systems research, development, and operation tests and demonstrations of intelligent vehicles and infrastructure systems. The list of priorities includes traffic management, incident management, crash-avoidance and integration of in-vehicle crash protection technologies, human factors research, integration of intelligent vehicles and infrastructure, and research on the impact of the environment on intelligent transportation systems. Operational tests are to be designed for the collection of data allowing for objective evaluation of the test results. The Federal share of operational tests and demonstrations is not to exceed 80 percent. Intelligent Transportation System Integration Program Senate amendment Section 525, 23 U.S.C., as proposed, directs the Secretary to conduct a comprehensive program to accelerate the integration and interoperability of intelligent transportation systems in metropolitan areas by funding deployment projects that illustrate the benefits of intelligent transportation systems technologies. This section includes a list of priorities the Secretary is to consider in selecting projects. The Secretary is required to encourage private sector involvement through public-private partnerships and other innovative financial arrangements. In addition, funding recipients are required to submit multi- year financing and operations plans describing how the project can be cost-effectively operated and maintained. Section 526, 23 U.S.C., directs the Secretary to conduct a comprehensive program to accelerate the integration and inteoperability of intelligent transportation systems in rural areas by funding deployment projects that illustrate the benefits of intelligent transportation systems technologies. This section includes a list of priorities the Secretary is to consider in selecting projects. The Secretary is required to encourage private sector involvement through public-private partnerships and other innovative financial arrangements. In addition, funding recipients are required to submit multi-year financing and operations plans describing how the project can be cost-effectively operated and maintained. House bill Section 656 establishes the intelligent transportation system deployment program and describes its purposes, with the primary purpose being to integrate existing intelligent transportation systems components to ensure they work as systems. This section also sets goals for the deployment program including acceleration of standard-setting processes, and lists the specific requirements a project must meet to be eligible for funding. This section also requires that at least 25 percent of funds made available to carry out this section be used for commercial vehicle intelligent transportation systems projects and that not less than 10 percent be used for projects outside of metropolitan areas. In addition, this section sets limits on how much funding can be spent on certain types of projects. Conference substitute The Conference adopts the Senate provision with modifications. The substitute consolidates sections 525 and 526, 23 U.S.C., as proposed, from the Senate bill and directs the Secretary to conduct a comprehensive program to accelerate the integration and interoperability of intelligent transportation systems in metropolitan and rural areas by funding deployment projects that illustrate the benefits of intelligent transportation systems technologies. The substitute also includes a list of priorities, based on both the House and Senate bills, that the Secretary is to consider in selecting projects, including any contribution to national program plan goals, demonstration of a cooperation among different agencies, jurisdictions, and the private sector, encouragement of private sector involvement, inclusion in approved state or metropolitan plans, and assurance of continued, long-term operations and maintenance without continued reliance on Federal funding. The substitute requires that funds for projects in metropolitan areas be used primarily for integration purposes, whereas in rural areas, funds may be used for installation of intelligent transportation systems infrastructure. In addition, the substitute includes the House provision requiring that not less than 10 percent be used for projects in rural areas. The Federal share of projects payable from funds made available under this section is set at 50 percent, but the total Federal share payable from all eligible sources (including this section) may not exceed 80 percent. Commercial Vehicle Intelligent Transportation System Infrastructure Deployment Senate amendment Section 527, 23 U.S.C., as proposed, establishes a program to deploy intelligent transportation systems that improve the safety and productivity of commercial motor vehicles and drivers and that reduce administrative costs associated with commercial vehicle operations. This section focuses on improving the safety of commercial vehicles operations by funding activities that, for example, assist in the identification of unsafe carriers, vehicles, and drivers and that advance on-board driver and vehicle-safety monitoring systems. Other priorities include improving the electronic processing of registration, licensing, inspection, tax and crash data, the exchange of this information among the States, and the effectiveness and efficiency of enforcement efforts. House bill Section 656 establishes the intelligent transportation system deployment program and describes its purposes, with the primary purpose being to integrate existing intelligent transportation systems components to ensure they work as systems. This section also sets goals for the deployment program including acceleration of standard-setting processes, and lists the specific requirements a project must meet to be eligible for funding. This section also requires that at least 25 percent of funds made available to carry [[Page H3928]] out this section be used for commercial vehicle intelligent transportation systems projects and that not less than 10 percent be used for projects outside of metropolitan areas. In addition, this section sets limits on how much funding can be spent on certain types of projects. Conference substitute The Conference adopts the Senate provision with modifications. The substitute establishes a deployment program to promote intelligent transportation systems that improve the safety and productivity of commercial vehicles and drivers and that reduce administrative costs. The program's purpose is to advance the technological capability and deployment of intelligent transportation systems applications to commercial vehicle operations, including commercial vehicle information systems and networks (CVISN). This section also includes a list of priorities the Secretary is to consider in selecting projects, including the extent to which a project encourages multistate cooperation, improves safety, increases regulatory efficiency, advances electronic processing of data, and promotes the exchange of information among States. In addition, the substitute directs that Federal funds should be used for activities that are not being carried out with private funds. The Federal share of projects payable from funds made available under this section is set at 50 percent, but the total Federal share payable from all eligible sources (including this section) may not exceed 80 percent. Authorizations and Limitations Outreach and Public Relations Senate amendment Subsection 530(d), 23 U.S.C., as proposed, limits the amount of funding available for outreach, public relations, training, mainstreaming, shareholder relations, or related activities. House bill The House bill contains no comparable provision. Conference substitute The conference report adopts the Senate provision with modifications. The limitation on funds is reduced to $5,000,000 per year, and this limitation applies specifically only to outreach, public relations, displays, scholarships, tours, and brochures and the substitute provision specifies that this limitation does not apply to intelligent transportation systems training, the publication or distribution of research finding, technical guidance, or similar documents. Infrastructure Development Senate amendment Subsection 530(c), 23 U.S.C., as proposed, prohibits the use of intelligent transportation system funds for the construction of highway or transit infrastructure unless the construction is incidental and critically necessary to the implementation of an intelligent transportation system project. House bill The House bill contains no comparable provision. Conference substitute The Conference adopts the Senate provision. Life Cycle Cost Analysis and Financing and Operations Plan Senate amendment Subsections 525(d) and 526(d), 23 U.S.C., as proposed, recipients funding for projects under the intelligent transportation systems integration program and the integration program for rural areas are required to submit multi-year financing and operations plans describing how each project can be cost-effectively operated and maintained. House bill Subsection 653(g) requires life-cycle cost analyses of intelligent transportation systems projects costing over $3 million. Conference substitute The Conference adopts a provision combining the House and Senate provisions. The substitute requires applicants for funds under the intelligent transportation systems integration program and the commercial vehicle intelligent transportation system infrastructure deployment programs to submit life-cycle cost analyses of intelligent transportation systems projects costing over $3 million and, for every project, multiyear financing and operations plans describing how the project will be cost-effectively operated and maintained. Definitions Senate amendment Section 522, 23 U.S.C., as proposed, defines the following terms for purposes of this subchapter: commercial vehicle information systems and networks, commercial vehicle operations, completed standard, corridor, intelligent transportation system, national architecture, provisional standard, and standard. House bill Section 651 defines the following terms for purposes of this subtitle: intelligent transportation systems (ITS), intelligent transportation infrastructure, Secretary, and State. Conference substitute The Conference adopts both the Senate and House provisions with following modifications. Definitions for the terms ``completed standard'' and ``provisional standards'' in the Senate bill are not adopted and the definition for the term ``Secretary'' in the House bill is not adopted. The definition for the term ``intelligent transportation system'' is substantively equivalent in both bills and is adopted. Repeal Senate amendment Section 2104 repeals the intelligent transportation systems programs that were established under the Intermodal Surface Transportation Efficiency Act (ISTEA) as they are superseded by the new programs in this [subtitle/subchapter] House bill Subsection 658 repeals the intelligent transportation systems programs that were established under the Intermodal Surface Transportation Efficiency Act (ISTEA) as they are superseded by the new programs in this [subtitle/subchapter]. Conference substitute The Conference finds the provisions in both the House and Senate to be substantively equivalent. Project Funding House bill Sec. 632(b)(5) requires the Secretary to carry out a transportation technology innovation and demonstration program concerning the use of hazardous materials monitoring systems. The Secretary is required to conduct research on applying methods of deploying and integrating ITS or hazardous materials monitoring systems across various modes of transportation. The provision makes available for each of the fiscal years 1998 through 2003 $1.5 million per fiscal year. Senate amendment No comparable provision. Conference substitute The Conference adopts the House provision. In conducting the research provided for in Section 5212(a), the Secretary should award funds to develop and deploy a fully integrated and unique Hazardous Materials Incident Management System designed to facilitate emergency response to hazardous materials incidents and safer, more efficient movement of hazardous materials across various modes of transportation. Specifically, the funds authorized in this section are intended for further development and use of the Cargo Mate cargo identification and monitoring system, which provides for interoperability with existing fleet communications and management systems, real-time vehicle container, pallet cargo identification, location and monitoring. The integrated and consolidated Hazardous Materials Incident Management System should then be incorporated into current and future Traffic Management Centers to support safe movement of hazardous materials throughout the intermodal process. In developing this system, consideration should be given to additional technologies, including advanced information processing technologies, which support emergency response, law enforcement, and regulatory resources. House bill TITLE VI--OZONE AND PARTICULATE MATTER STANDARDS No provisions comparable. Sec. 4101 to 4104 of the Senate Amendment The Conferees note that in March 1998, the National Research Council's Committee on Research Priorities for Airborne Particulate Matter issued the first in a series of reports on research priorities relevant to settling particulate matter standards. This report addresses a number of issues, including whether the monitoring network necessary to implement the new National Ambient Air Quality Standard fine particulate (PM2.5) is designed to (1) support relevant health effects, exposure, and atmospheric-modeling research efforts; (2) use the appropriate number of continuous (hourly) monitors to determine the time of day and exposure of people who are commuting, working, or exercising outdoors; and (3) use sufficient chemical characterization of particulate matter to enable testing of more specific indicators than PM2.5 mass alone. The Conferees urge the Administrator to consider the recommendations contained in the Committee's March 1998 report. The Conferees further urge the Administrator to ensure, as appropriate, that the plans for the national monitoring network necessary to implement the National Ambient Air Quality Standard for PM2.5 is peer-reviewed by the Clean Air Scientific Advisory Committee at an early date while the opportunity still exists for such review to influence the monitoring network design and operations. The Conferees are aware that certain nonattainment areas in Western Pennsylvania have experienced difficulty in meeting the one-hour, 0.12 part per million standard for ozone because of pollution which did not originate in the nonattainment area. The Conferees urge EPA to continue its efforts to avoid ``bumping up'' nonattainment areas in Pennsylvania to a higher nonattainment status or ozone. The Conferees recognize that the Regional Haze regulation has not been finalized and the Administrator of the Environmental Protection Agency (EPA) is still considering the views of various stakeholders. The Conferees agree with EPA's public statements that the schedule for the State Implementation Plan due pursuant to section 169B(e)(2) [[Page H3929]] of the Clean Airport Act should be harmonized with the Schedule for State Implementation Plan submissions required for PM2.5. ambient air quality standard promulgated in July, 1997. Conference substitute Adopts the Senate provison. TITLE VII--MISCELLANEOUS Subtitle A--Automobile Safety and Information Automatic Crash Protection Unbelted Testing Standard House bill The House bill contains no similar provision. Senate amendment Section 1407 of the Senate amendment ensures that the current testing standard for air bags is designed to ensure the optimal protection and safety for all occupants, including infants, children, and other occupants. Conference report The conference report does not include the provision. Improving Air Bag Safety House bill The House bill contains no similar provision. Senate amendment Section 1407 of the Senate bill directs the Secretary of Transportation to undertake rulemaking to improve the protection afforded vehicle occupants by Motor Vehicle Safety Standard No. 208. The purpose of the rulemaking would be to improve the efficiency and protection accorded by occupant protection devices while attempting to minimize any potential risk associated with air bags to infants, children, and other occupants. During the development of a rule to improve the safety of air bags, the barrier test using unbelted 50th percentile adult male dummies would be suspended. The Secretary would be required to begin the rulemaking by June 1, 1998, and to issue a final rule by June 1, 1999, with a one-year extension permitted upon the Secretary's advising Congress of the need for an extension. The rule would require such tests as the Secretary determines to be reasonable, practicable, and appropriate, including tests using dummies of different sizes. The requirements of the new standard would become effective in phases, beginning between September 1, 2001 and September 1, 2002, and concluding not later than September 1, 2005, with discretion given the Secretary for a one-year extension. Any extension would require a joint resolution of Congress. The Secretary would be required to report to Congress within six months of enactment on the development of technology to improve the protection given by air bags and to reduce the risks from air bags, including information on the performance characteristics of advanced air bags, their estimated cost, their estimated benefits, and the time within which they could be installed in production vehicles. Conference report The conferees agree to include a new subtitle addressing automobile safety and information issues. In addition to addressing the Senate bill's provisions regarding air bags, the subtitle also includes many of the provisions contained in H.R. 2691, the National Highway Traffic Safety Administration Reauthorization Act of 1998, which passed the House on April 21, 1998, by voice vote. Section 7101 establishes the short title for the subtitle, the ``National Highway Traffic Safety Administration Reauthorization Act of 1998.'' Section 7102 authorizes funds for those NHTSA's automobile safety and information programs. For Fiscal Years 1999 through 2001, the legislation authorizes $81.2 million each year for motor vehicle safety activities, and $6.2 million for motor vehicle information activities. These amounts are equivalent to the Administration's budget request. Section 7103 contains provisions intended to improve air bag safety. Subsection (a) directs the Secretary to issue a notice of proposed rulemaking by September 1, 1998 to improve occupant protection for occupants of different sizes, belted and unbelted, under Federal Motor Vehicle Safety Standard (FMVSS) No. 208 while minimizing the risk to infants, children, and other occupants from any risks associated with air bags, by means that include advanced air bags. The Secretary is required to issue a final rule no later than September 1, 1999, unless the Secretary determines that the final rule cannot be completed by that date, in which case the Secretary must promulgate the final rule no later than March 1, 2000. The final rule must be consistent with both the requirements of this section and 49 U.S.C. Sec. 30111, which specifies the requirements for motor vehicle safety standards. The Conferees note that air bags do not substitute for lap and shoulder belts and all occupants should always wear lap and shoulder belts regardless of whether there is an inflatable restraint in the vehicle. The Secretary is directed to make the final rule effective in phases as rapidly as practicable beginning not earlier than September 1, 2002 or at least 30 months after the date on which the Secretary promulgates the final rule, but in any case, not later than September 1, 2003. The rule is to be fully effective for all passenger motor vehicles, multipurpose passenger vehicles, and other vehicles identified in 49 U.S.C. Sec. 30127(b) manufactured on or after September 1, 2005. If the Secretary issues the final rule on September 1, 2003, the date for full compliance may be extended to September 1, 2006. The availability of the current sled test certification option available under FMVSS 208 (S13) remains in effect unless and until phased out according to the schedule in the final rule. The Secretary is also directed to include in the notice of proposed rulemaking means by which manufacturers may earn credits for early compliance with the final standard issued by the Secretary. Subsection (b) provides that any government advisory committee, task force, or other entity include representatives of consumer and safety organizations, insurers, manufacturers, and suppliers. Section 7104 prohibits the use of funds appropriated to NHTSA for the purpose of urging a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislature. Subsection (b) clarifies that officers or employees of the United States are not prohibited from testifying before any state or local legislature in response to the invitation of a member of such body or a State executive office. The provision is not intended to prohibit the Agency from informing State or local legislators about the prudence of a particular policy choice, but rather is intended to limit the Agency's ability to lobby a particular piece of legislation before a State or local legislature. Thus, under this provision, NHTSA could continue to testify before any State or local legislative body and inform State and local officials about the merits of a particular course of action. A NHTSA official could even appear before a committee of a State legislature to testify that NHTSA believes that enactment of primary enforcement seat belt laws results in fewer highway fatalities. NHTSA could, in fact, testify that it favors general efforts to enact primary enforcement seat belt laws and opposes general efforts to repeal such laws. However, a NHTSA official could not, through the use of government resources, ask an individual State or local legislator, or any group of State or local legislators, to vote act on a particular pending measure. Subsection 7105(a) is intended to eliminate the need for two odometer disclosures in certain transactions involving rental car companies, dealers, and automobile manufacturers by exempting the transfer of new motor vehicles from a manufacturer jointly to a dealer and a rental car company. Subsection (b) responds to several recent Federal District Court decisions holding the NHTSA does not have authority to exempt vehicles from the odometer disclosure requirements, even when the purchasers of such vehicles rely on service records rather than odometers to indicate wear and tear, such as in the care of heavy trucks. This subsection specifically grants NHTSA such authority. Section 7106 makes several miscellaneous changes to title 49, United States Code, with respect to NHTSA's authorizing statutes. These changes in subsections (a) through (c) were requested by the Administration. Subsection (a) closes a loophole which allows auto parts stores and retailers to continue to sell defective equipment even though motor vehicle dealers would be prohibited from selling the same item. This provision includes retailers of motor vehicle equipment in the prohibition on selling defective items of equipment. Subsection (b) amends 49 U.S.C. 30123 (``Tires''), to repeal subsections (a) (``Labeling Requirement''), (b) (``Contents of Label''), and (c) (``Additional Information''). Under section 30123(a), the Secretary must require manufacturers of pneumatic tires to ``permanently and conspicuously'' label their tires with specified information under section 30123(b) about the construction of the tires and the identity of the manufacturer. Section 30123(c) gives the Secretary discretionary authority to require that additional safety information be disclosed to a purchaser when a tire is sold. Subsection (c) amends 49 U.S.C. 30127(g) to increase the reporting interval on the effectiveness of occupant restraint systems from every six months to annually. The Administration expressed concern that the six-month interval was too short a time frame in which to provide meaningful data to Congress. Subsection (d) amends the American Automobile Labeling Act (49 U.S.C. Sec. 30204) to make certain changes in the labeling requirement and the domestic content calculations. Subparagraph (1)(A) provides that the labor value of engine and transmission production is also included in the engine and transmission origin determination and subparagraph (1)(B) codifies certain regulations which permit labor costs of parts manufactured at the same location as final vehicle assembly to be included in the vehicle's overall content calculation, provided it does not occur during vehicle assembly. Subparagraph (1)(C) institutes a tiered system for accounting for the domestic content of parts manufactured by outside suppliers. Under this subparagraph, supplies would report content to the nearest five percent. For instance, 38 percent would be reported to the manufacturer as 40 percent, rather than zero as under current law. Paragraph (2) permits vehicle manufacturers to voluntarily add a line to the label stating the country in which vehicle final assembly took place. Paragraph (3) permits manufacturers, on a voluntary basis, to separately display the domestic content of a particular vehicle, based on its assembly plant. [[Page H3930]] This information must be reported in addition to the carline average percentage. Paragraph (4) codifies existing regulations permitting manufacturers to estimate, based upon best available information, the content of no more than 10 percent of the vehicle's parts, when suppliers fail to report such information. Paragraph (5) permits manufacturers to default the value of certain small parts, such as nuts, bolts, clips, screws, and pins, to the country of manufacture. Subsection (e) directs NHTSA to conduct a study of the benefits to motor vehicle drivers of a regulation to require the installation of a device in the trunk compartment to release the trunk lid. Section 7107 reinstates NHTSA's authority to exempt certain motor vehicles imported for the purpose of show or display from certain applicable motor vehicle safety standards. Such authority was unintentionally deleted when title 49, United States Code was recodified in 1988. Subtitle B Sec. 7201. High Speed Rail House bill Subsection (a) of Section 901 authorizes $10 million in each of fiscal years 1998 through 2001 for high speed rail corridor planning activities and $25 million in each of fiscal years 1998 through 2001 for high speed rail research and development under the Swift Rail Development Act of 1994. Subsection (b) defines high speed rail to include maglev systems. Senate amendment No comparable provision Conference substitute Adopts the House provision. The conferees also reaffirm the intention of the Swift Rail Development Act, that planning for improvements to rail infrastructure that would provide incremental speed increases toward achieving speeds of 125 mph or more are fully eligible for federal assistance under the conditions specified in the Act. Efforts to plan for near-term improvements that would achieve substantial speed increases, although not necessarily to a true high speed level of 125 mph, fall in this category. Sec. 7202. Light Density Rail Line Pilot Projects House bill Section 902 authorizes $25 million for each of fiscal years 1998 through 2003 for grants to states to fund pilot projects for making capital improvements to publicly and privately owned rail line structures on light-density rail lines. The purpose of the pilot projects is to demonstrate the relationship of light density railroad service to the statutory responsibilities of the Secretary of Transportation, including those under Title 23. Senate amendment Sec. 3701 is identical to the House provision, except funding is authorized at $10 million for each of fiscal years 1998 through 2003, instead of $25 million. Conference substitute Retains the authorization structure of both the House and Senate provisions, but provides for funding at a level of $17.5 million per fiscal year. Sec. 7203. Railroad Rehabilitation and Improvement Financing House bill Section 906(a) modifies the existing railroad infrastructure loan program contained in Title V of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.) to bring the program in line with the Credit Reform Act of 1990. Projects eligible for loan assistance under the program would include acquisition, improvement or rehabilitation of intermodal or rail equipment and facilities, refinancing of debt incurred for the aforementioned purposes, and development or establishment of new intermodal or railroad facilities. Operating expenses would not be eligible for loan assistance. Subsection (a) also limits the aggregate unpaid principal amounts of obligations under direct loans and loan guarantees to $5 billion at any one time. One billion dollars of this five billion is to be reserved solely for projects primarily benefiting freight railroads other than Class I carriers. In addition, subsection (a) allows the Secretary of Transportation to accept credit risk premiums from non- Federal sources to support loans and loan guarantees made under this section. Subsection (b) makes technical and conforming changes and includes a savings provision requiring that transactions entered into under Title V of the Regulatory Reform Act of 1976 before the date of enactment of BESTEA shall be administered until completion under its terms prior to the amendments made by BESTEA. Senate amendment No comparable provision. Conference substitute Adopts the structure of the House provision, but with revisions to the statement of priorities in section 7202(c), technical changes to conform to the 1997 amendments to the Credit Reform Act, and with the total authorization for face amounts of loans in subsection (d) limited to no more than $3.5 billion. Sec. 7204. Alaska Railroad House bill Section 904(a) provides that the Secretary may make grants to the Alaska Railroad for capital rehabilitation and improvement to its passenger service. Subsection (b) authorizes $5,250,000 to be appropriated for such purposes for each of fiscal years 1998 through 2003. Senate amendment No comparable provision. Conference substitute Adopts the House provision. Miami-Orlando-Tampa Corridor Project House bill Section 903 authorizes a general fund grant of $200 million to be made available to the Florida Department of Transportation to reimburse the Florida Overland Express (FOX) project in the Miami-Orlando-Tampa corridor for capital costs of that project. The state of Florida is planning a high-speed rail system in the Miami-Orlando-Tampa corridor that calls for a 320-mile system that would operate on dedicated tracks with no rail/ highway crossings. Operating speeds would be over 185 miles per hour. Senate amendment No comparable provision. Conference substitute No provision. Railway Highway Crossing Hazard Elimination in High Speed Rail House bill Section 905 authorizes $5,250,000 for each of fiscal years 1998 through 2003 to carry out section 104(d)(2) of title 23. Senate amendment Sec. 1402 authorizes $15,000,000 for each of fiscal years 1998 through 2003 for hazard elimination in high-speed rail corridors. Conference substitute No provision. Funding for grade crossing assistance is addressed in the non-rail titles of the legislation. House bill No provision. Senate amendment Section 3506 amends section 20901(a) of Title 49 to require railroads to file periodic reports with the Secretary on all accidents and incidents resulting in injury or death of an individual, or damage to equipment. Eliminates current requirement that reports be notarized and allows the Administrator to require reports less frequently than monthly. Conference substitute No provision. The conferees contemplate addressing these issues in the pending reauthorization of the rail safety programs of the Federal Railroad Administration. House bill No provision. Senate amendment Included at the Administration's request, sections 3501 through 3504 impose penalties for willful sabotage of or interference with railroad equipment, infrastructure or personnel. Also imposes penalties on anyone who knowingly possesses or causes to be present any firearm or other dangerous weapon on board a passenger train. Conference substitute No provision. Subtitle C--Comprehensive One-call Notification House bill No provision. Senate amendment Section 3301 contains several findings that unintentional damage to underground facilities during excavation is a significant cause of disruptions; that excavation performed without prior notification or with inaccurate marking causes damage that can result in fatalities; and, that protection of the public and the environment from the consequences of underground facility damage will be enhanced by a coordinated national effort to improve one-call notification programs. Section 3302 establishes a new chapter, which would be chapter 61, in Subtitle III of title 49, United States Code. The purposes of chapter 61, as set forth in 6101, are to enhance public safety; protect the environment; minimize risks to excavators; and prevent disruption of vital public services by improving one-call notification programs. The new section 6102 defines a one-call notification system as a system operated by an organization that has as one of its purposes the receipt of notification from excavators of their intent to excavate in a specified area and the notification of underground facility operators so that they can locate and mark their lines in the area scheduled for excavation. The definition includes statutes, regulations, orders, and other elements of law and policy in effect that establish one-call notification system operation requirements within a State. The new section 6103 also outlines minimum components that one-call notification programs should cover, including the appropriate participation by all underground facility operators, all excavators, and flexible and effective enforcement mechanisms governing participation in, and use of, one-call notification systems. In making a determination on the appropriate extent of participation required by underground facilities or excavators, the section requires a State to assess, and take into consideration, the risks to public safety, excavators, the environment, and vital services posed by underground facility damage and the actions of excavators. The new section 6103 would further provide that a state could allow voluntary participation in one-call notification systems when it [[Page H3931]] determines that certain types of underground facilities or excavation activities pose a de minimis risk to public safety or the environment. The section requires one-call notification programs to include administrative or civil penalties commensurate with the seriousness of a violation, increased penalties for parties that repeatedly damage underground facilities because they neglect to use one-call notification systems or fail to provide timely and accurate marking of underground facilities. The section allows states to reduce or waive penalties when underground facility damage is promptly reported. The new section 6104 establishes a two-year program whereby states could apply for grants upon a showing that the state's one-call notification program meets the minimum standards outlined in the bill. The section further provides that a state providing for greater protection than the minimum standards criteria established in the legislation would also be eligible to receive grants. The new section 6104 would also require the Secretary to include, three years after the enactment of this legislation, additional information on one- call notification programs in the biennial report on gas and hazardous liquids. The new section 6105 requires the Secretary of Transportation to initiate a study of the best practices employed by one-call notification systems in operation in the States. If a study is undertaken, the Secretary is required to report on the best practices identified and encourage their adoption in the States. The Secretary is authorized to suspend with the report if the Secretary determines that the information is already readily accessible. The new section 6106 would authorize the Secretary to make grants to improve one-call notification systems, and should take into account the commitment of each state in improving its program, in awarding grants. The provision also authorizes a state to convey its funds directly to any one- call notification system that adopts the best practices established under 6105. The new section neither opens nor closes the door to having one or more one-call system. Most states have a single one-call system, but several have more than one, this determination will remain a state's choice. The new section 6107 would authorize up to $1,000,000 and $5,000,000 in fiscal years 2000 and 2001 out of general revenue funds. Section 3302 also made conforming changes to the table of chapters for subtitle III, and certain conforming changes to the existing one-call notification systems language of 49 United States Code 60114. Conference substitute The Conference adopts the Senate provisions with modifications. The Conference stresses that untimely marking of underground facilities, as well as the findings contained in the Senate provision, also cause underground facility damage. The Conference also clarifies that compliance with the minimum standards outlined in sections 6103 and 6104 would only be required when applying for a grant under the new section 6106. The Conference also modifies the Senate language to require the Secretary to encourage states to adopt the most successful practices of one-call notification systems as determined the most appropriate by each state. The Conference also modifies language in the newly added section 6108 to clarify that nothing in the new chapter 61 preempts any existing state law, or would require a state to modify or revise existing one-call notification systems. The Conference also retains 49 U.S.C. 60114. Subtitle D--Sportfishing and Boating Safety House bill Title VIII of H.R. 2400, contains amendments related to the Coast Guard's Recreational Boating Safety Program. Section 801 of H.R. 2400 provides that title VIII of H.R. 2400 may be cited as the ``Recreational Boating Safety Improvement Act of 1998.'' Section 802 of H.R. 2400 contains amendments to chapter 131 of title 46, United States Code, regarding the recreational boating safety state grant program administered by the Coast Guard. Section 802(a) of this title amends section 13106(a) of title 46, United States Code, to allow the Secretary of Transportation to expend each fiscal year the total amount transferred to the Boat Safety Account under section 9503(c)(4) of the Internal Revenue Code of 1986 (26 U.S.C. 9503(c)(4)) for State recreational boating safety programs. Under amendments contained in section 1104(a)(2) of H.R. 2400, the amount transferred to the Boat Safety Account is equivalent to one-half of the total amount received as motorboat fuel taxes during the preceding fiscal year. Section 802(a) of this bill also amends section 13106(c) of title 46 to establish two additional boating safety purposes for which funds are made available to the Secretary from amounts transferred to the Boat Safety Account. These additional purposes are: (1) up to two percent is available to the Secretary for compliance with chapter 43 of title 46, relating to safety standards for recreational vessels and associated equipment; and (2) up to three percent is available to the Secretary to establish, operate, and maintain aids to navigation that promote recreational boating safety. Section 802(b) amends section 13103(c) of title 46 to require the Secretary of Transportation to conduct and report to Congress the findings of a comprehensive survey of recreational boating in the United States, by not later than December 1 of 1999, and of every fifth year thereafter. To conduct this survey, the Secretary may not use over 50 percent of the amounts allocated for national boating safety activities of national nonprofit public service organizations under this subsection for the fiscal year in which the survey is conducted. Subsection (c) of section 802 of this title amends section 13106 of title 46 by adding a requirement for the Secretary of Transportation to make available in each fiscal year five percent of the amount appropriated for State boating safety programs that is in excess of $35 million for public access facilities for transient nontrailerable recreational vessels. Section 802(d) of this title establishes an effective date for this section of October 1, 1998. Senate amendment Subtitle F of S. 1173 contains amendments to the Sport Fish Restoration Program administered by the Secretary of Interior (Secretary) through the Fish and Wildlife Service, and the Recreational Boating Safety Program administered by the Secretary of Transportation through the Coast Guard. Section 3601 states that amendments in the Act that are expressed in terms of an amendment to or a repeal of provisions of the ``1950 Act'' shall be considered to be made to provisions of the Act entitled ``An Act to provide that the United States shall aid the States in fish restoration and management projects, and for other purposes,'' approved on August 9, 1950 (16 U.S.C. 777 et seq.). Section 3602 establishes a new boating and fishing outreach and communications initiative. Subsection (a) of this section amends section 2 of the 1950 Act (16 U.S.C. 777a) to make technical changes and to establish definitions for the terms ``outreach and communications program'' and ``aquatic resource education program''. Subsection (b) amends section 4 of the 1950 Act (16 U.S.C. 777c) to provide funding for a National Outreach and Communications Program beginning in fiscal year (FY) 1999 through FY 2003. Funding for this program is allocated from the Sport Fish Restoration Account of the Aquatic Resources Trust Fund. In FY 1999 the program receives $5 million, with the amount increasing to $10 million in FY 2003. Subsection (b) also authorizes the Secretary to use for this program up to $2.5 million annually from the funds available for administration. In addition, this subsection prohibits the Secretary from using funds available for administration to replace funding traditionally provided through general appropriations. Furthermore, the Secretary is required to publish annually in the Federal Register a detailed accounting of the projects and programs that receive administrative funds. Section 3602(c) amends section 8 of the 1950 Act (16 U.S.C. 777g) to change the percentage of State funding required to be used to enhance boating access from 12.5 percent to 15 percent and to change the percentage of State funding allowed to be used for aquatic resource education and outreach and communications from 10 percent to 15 percent. This subsection also adds new provisions to section 8 that: (1) require the Secretary, in cooperation with the Sport Fishing and Boating Partnership Council, to develop and implement a national plan for outreach and communications within one year of enactment of the bill; (2) require that the plan provide for the establishment of a national outreach and communications program; (3) authorize the Secretary to provide funding to make grants to the States or private entities for the cost of carrying out outreach or communications programs under the plan; and (4) require the States to develop plans for outreach and communications programs within one year of the completion of the national plan. Section 3603 makes changes to the Clean Vessel Act of 1992 (P.L. 102-587, title V, subtitle F). Specifically, this section amends section 4(b) of the 1950 Act (16 U.S.C. 777c(b)) to provide annually in FY 1999 through FY 2003 funding totaling $84 million, reduced by 82 percent of the amount appropriated for boat safety from the Boat Safety Account. These funds are allocated as follows: (1) $10 million for vessel pumpout facilities under section 5604 of the Clean Vessel Act (33 U.S.C. 1322 note); (2) $10 million for a new boating infrastructure program established under section 3604 of this subtitle; and (3) the remainder for State recreational boating safety programs under section 13106 of title 46, U.S. Code. This section ensures that States receive between $59 million and $72 million annually for State boating safety programs. Section 3604 establishes a program to improve boating infrastructure. Subsection (a) states that the purpose of this section is to provide funds to the States for the development and maintenance of public facilities for transient nontrailerable recreational vessels. Subsection (b) amends section 8 of the 1950 Act (16 U.S.C. 777g) to require the Secretary, in consultation with the States, to develop a national framework that can be sued by the States to conduct surveys to determine their boat access needs. Each State agreeing to conduct a public boat access needs survey would be required to report its findings to the Secretary within 18 months for use in the development of a comprehensive national assessment of recreational boat access needs and facilities. Section 3604(c) allows a State, within 6 months of submitting a public boat access [[Page H3932]] needs survey to the Secretary, to submit to the Secretary plans for the construction, renovation, and maintenance of public facilities for transient nontrailerable recreational vessels. Subsection (d) directs the Secretary to make grants to the States for constructing, renovating, or maintaining public facilities for transient nontrailerable recreational vessels, and establishes priorities for such grants, including projects proposed in accordance with a State plan under subsection(c). Grants made to State under this subsection may not exceed 75 percent of the cost incurred by the State for these projects. Subsection (e) defines the terms ``nontrailerable recreational vessel'' and ``public facilities for transient nontrailerable recreational vessels.'' Section 3605 makes changes to the Recreational Boating Safety Program administered by the U.S. Coast Guard. Subsection (a) of this section amends section 13104(a) of title 46, U.S. Code, to reduce the amount of time that States have to obligate funds received under the Recreational Boating Safety Program from 3 years to 2 years. Subsection (b) amends section 13106 of title 46, U.S. Code, to specify that an amount equal to the sum of (1) appropriations from the Boat Safety Account and (2) transfers to the Secretary of Transportation under the Clean Vessel Act (as amended by section 3603 of this bill) will be available annually for the Recreational Boating Safety Program. Of this amount, $5 million is provided to the Coast Guard annually for expenses related to the coordination and administration of the program. Subsection (c) makes conforming amendments to section 13106 of title 46, U.S. Code. Conference substitute The conference substitute adopts the Senate amendment, with technical and other changes described as follows: Section 7401 of the conference substitute provides that subtitle D of title VI of this Act may be cited as the ``Sportfishing and Boating Safety Act of 1998.'' Section 7403 eliminates the requirement that the Secretary use $10 million in FY 1999 for qualified boating infrastructure projects under section 7404(d) of the conference substitute, and makes these funds available in FY 1999 for the Sport Fish Restoration Program. This section also reduces the amount available for these projects in FY 2000 through 2003 from $10 million annually to $8 million, and makes the $2 million differential available for the Sport fish Restoration Program. Section 7404 of the conference substitute clarifies that grants for facilities for transient nontrailerable recreational vessels under this section may be available for either publicly or privately owned facilities provided that the facilities are available to the general public, as determined by the Secretary. The conferees intend that, in making this determination, the Secretary should develop guidelines which, among other things, establish reasonable costs to ensure that such facilities are available to the general public. Section 7405(b) of the conference substitute provides that, of the $5 million available annually for Coast Guard administration, $2 million will be used by the Secretary of Transportation annually to ensure compliance with chapter 43 of title 46, U.S. Code. This funding will enable the Coast Guard to improve boating safety by more vigorously enforcing existing provisions designed to prevent boating defects. REVENUE TITLE I. Highway-Related Taxes and Trust Fund A. Extension and Modification of Highway-Related Taxes 1. Highway-related taxes and exemptions Present Law Tax rates Highway Trust Fund excise taxes are imposed on gasoline, diesel fuel, kerosene, special motor fuels, on heavy truck and tire sales, and on the use of heavy trucks. The Highway Trust Fund tax rates are scheduled to expire after September 30, 1999, except for 4.3 cents per gallon of the motor fuels excise tax (which is permanent). The current Highway Trust Fund excise tax rates are as follows: ------------------------------------------------------------------------ Item Tax rate <SUP>1 ------------------------------------------------------------------------ Motor fuels: Gasoline.............................. 18.3 Diesel and kerosene................... 24.3 Special motor fuels generally......... 18.3 <SUP>2 Compressed natural gas (``CNG'')...... 4.3 <SUP>3 Retail sales of heavy highway vehicles.... 12% of retail price Heavy truck tires......................... Graduated tax on tires weighing more than 40 lbs. Annual highway vehicle use................ Graduated tax on vehicles of 55,000 lbs. or more ------------------------------------------------------------------------ \1\ Motor fuel tax rates include the permanent 4.3 cents-per-gallon fuels tax; the rates do not include the 0.1-cent-per-gallon tax on motor fuels for the Leaking Underground Storage Tank Trust Fund. \2\ The rate is 13.6 cents per gallon for propane, 11.9 cents per gallon for liquified natural gas (``LNG'), and 11.3 cents per gallon for methanol fuel from natural gas, each based on the relative energy equivalence of the fuel to gasoline. \3\ The statutory rate is 48.54 cents per thousand cubic feet (``MCF'). Motor fuels exemptions Present law provides exemptions (including partial exemptions for specified uses of taxable fuels or for specified fuels) for governments or for certain uses not involving use of the highway system (such as farming). LNG, propane, CNG, and methanol derived from natural gas are subject to reduced tax rates based on the energy equivalence of these fuels to gasoline. Ethanol and methanol derived from renewable sources (e.g., biomass) are eligible for income tax benefits (the ``alcohol fuels credit'') equal to 54 cents per gallon for ethanol and 60 cents per gallon for methanol. The alcohol fuels credit is scheduled to expire after December 31, 2000, or earlier if the Highway Trust Fund taxes actually expire before that time. In addition, small ethanol producers are eligible for a separate 10-cents-per-gallon tax credit. The 54-cents-per- gallon ethanol and 60-cents-per-gallon renewable-source methanol tax credits may be claimed through reduced excise taxes paid on gasoline and special motor fuels as well as through income tax credits. The authority to claim the ethanol and renewable-source methanol tax benefits through excise tax reductions is scheduled to expire after September 30, 2000, or earlier if the Highway Trust Fund taxes actually expire before then. House Bill Tax rates The House bill extends the Highway Trust Fund excise taxes, other than the heavy truck tire tax, through September 30, 2005. The tire tax is extended through September 30, 2000, and then is repealed. Motor fuels tax exemptions and alcohol fuels credits The House bill extends the current motor fuels tax exemptions generally for the period concurrent with the extension period for the taxes, except that the present-law expirations for the ethanol and renewable-source methanol exemptions (and income tax credits) are retained. Effective date Date of enactment. Senate Amendment Tax rates The Senate amendment extends all Highway Trust Fund excise taxes through September 30, 2005. Motor fuel exemptions and alcohol fuels credits The Senate amendment is the same as the House bill with respect to the extension of the general motor fuels tax exemptions. The Senate amendment extends the ethanol and renewable-source methanol tax provisions through September 30, 2007 (excise tax reduction) and December 31, 2007 (income tax credit), respectively. Further, the Senate amendment reduces the ethanol benefit from 54 cents per gallon to 53 cents per gallon for 2001-2002, 52 cents per gallon for 2003- 2004, and 51 cents per gallon for 2005-2007. Effective date Date of enactment. Conference agreement Tax rates The conference agreement follows the Senate amendment. Motor fuel exemptions and alcohol fuels credits The conference agreement follows the Senate amendment. Effective date Date of enactment. 2. Motor fuels tax refund procedure Present law Gasoline and diesel fuel excise tax refunds are administered separately, subject to separate quarterly minimum filing thresholds. For gasoline, the minimum refund claim is $1,000 in the calendar quarter to which the claim relates. Certain diesel fuel claims are subject to this same standard; certain other diesel and aviation fuel claims may be filed in any of the first three calendar quarters in which the aggregate year-to-date refund equals $750. Fourth quarter refunds must be claimed as income tax credits regardless of amount. House Bill The House bill combines refund procedures for all taxable motor fuels, allowing aggregation of quarterly amounts and filing of refund claims once a single $750 minimum amount is reached (determined on a year-to-year basis rather than an individual quarter basis). Fourth quarter refund claims are allowed under the same rules as applicable to the first three quarters. Effective date Claims filed after September 30, 1998. Senate amendment No provision. Conference agreement The conference agreement follows the House bill. 3. Requirement that motor fuels terminals offer dyed fuel Present law Diesel fuel and kerosene (after June 30, 1998) are taxed on removal from a registered terminal facility unless the fuel is destined for a nontaxable use and is indelibly dyed. After June 30, 1998, terminals must offer dyed fuel as a condition of being allowed to store untaxed fuel. House bill The House bill delays the effective date of the requirement that terminals offer dyed fuel for two years, to July 1, 2000. Effective date Date of enactment. Senate amendment The Senate amendment is the same as in the House bill. [[Page H3933]] Conference agreement The conference agreement follows the House bill and the Senate amendment. B. Highway Trust Fund Provisions Present law Transfers of revenues to Highway Trust Fund Gross receipts from current highway excise taxes are dedicated to the Highway Trust Fund for taxes imposed through September 30, 1999, and received in the Treasury before July 1, 2000, under provisions of section 9503 of the Internal Revenue Code (the ``Code'). Interest on Highway Trust Fund balances; unspent balances The Highway Trust Fund earns interest on cash balances each year from investments in Treasury securities (sec. 9602). Cash balances remain in the Highway Trust Fund until expended. Highway Trust Fund expenditure authority The Code authorizes expenditures (subject to appropriations Acts) from the Highway Trust Fund through September 30, 1998, for purposes provided in authorizing legislation, as in effect on the date of enactment of Public Law 105-130. No Highway Trust Fund monies may be spent for a purpose not approved as of the last updating of the Code reference to the most recent authorizing legislation changes. The Highway Trust Fund is divided into two Accounts: a Highway Account and a Mass Transit Account, each of which is the funding source for specific transportation programs. The Highway Account receives revenues from all non-fuel highway- related excise taxes plus revenues from all but 2.85 cents per gallon <SUP>4</SUP> of the highway motor fuels excise taxes. The Mass Transit Account currently receives the 2.85 cents per gallon from the highway motor fuels excise taxes.<SUP>5</SUP> --------------------------------------------------------------------------- \4\ A technical correction (to 2.86 cents per gallon) is included in this revenue title (H.R. 2400), and also in Title VI of H.R. 2676 as passed by the House and the Senate. \5\ Ibid. --------------------------------------------------------------------------- Highway Trust Fund anti-deficit provisions Highway Trust Fund spending is limited by two anti-deficit provisions, which are internal to each of the Accounts. The first limits the unfunded Highway Account authorizations at the end of any fiscal year to amounts not exceeding the unobligated balance plus revenues projected to be collected for that Account by the dedicated excise taxes during the following two fiscal years. The second provision similarly limits unfunded Mass Transit Account authorizations to the dedicated excise tax revenues projected to be collected during the next fiscal year. If either of these provisions is violated, spending for programs funded by the respective Accounts is to be reduced proportionately, similar to a Budget Act sequester. 1997 transfer of 4.3-cents-per-gallon tax revenues not for direct spending The Taxpayer Relief Act of 1997 (the ``1997 Act'') transferred revenues from the additional 4.3-cents-per-gallon highway fuels taxes to the Highway Trust Fund, effective on October 1, 1997. The 1997 Act provided that those revenues could not be used to increase direct spending under the 1991 authorizing legislation. House bill Transfers of revenues to Highway Trust Fund The House bill transfers the gross receipts from current highway excise taxes (as modified by the House bill repeal of the heavy truck tire excise tax on October 1, 2000) through September 30, 2005. Consistent with present law, pre-October 1, 2005 amounts received after September 30, 1999 with respect to highway excise tax liabilities will continue to be transferred to the Highway Trust Fund through June 30, 2006. Interest on Highway Trust Fund balances; unspent balances Under the House bill, the Highway Trust Fund earns no further interest on its cash balances after September 30, 1998. The House bill cancels certain ``excess'' Highway Trust Fund's Highway Account balance (the amount in excess of $8 billion) on October 1, 1998. Highway Trust Fund expenditure authority The House bill extends the Highway Trust Fund expenditure authority through September 30, 2003, and updates the expenditure purposes for the Highway and Mass Transit Accounts to the purposes as included in the current House bill authorizing legislation (H.R. 2400). Provisions are incorporated into the Highway Trust Fund specifying that expenditures from the Highway Trust Fund may occur only as provided in the Internal Revenue Code. The House bill clarifies that the expenditure authority expiration date does not preclude disbursements to liquidate contracts which are validly entered into before the expiration date. Expenditures for contracts entered into or for amounts otherwise obligated after an expiration date (or for other non-contract authority purposes under non-Code provisions) are not to be permitted, notwithstanding the subsequently enacted authorization or appropriations legislation. If any such subsequent legislation authorizes such expenditures, or such expenditures occur by administrative action in the contravention of the Code restrictions, excise tax revenues otherwise to be deposited in the Highway Trust Fund are to be retained in the General Fund beginning on the date of such unauthorized action. Highway Trust Fund anti-deficit provisions The House bill conforms the one-year anti-deficit rule in the Mass Transit Account to the two-year rule in the Highway Account. Highway Trust Fund technical corrections The House bill includes two technical corrections to the 1997 Act relating to the Highway Trust Fund excise tax revenues: (1) Excise tax revenues attributable to LNG, CNG, propane, and methanol from natural gas are divided between the Highway and Mass Transit Accounts in the same proportions as gasoline tax revenues are divided between those two accounts; and (2) The amount of highway motor fuels tax revenues transferred to the Mass Transit Account is corrected to 2.86 cents per gallon (rather than 2.85 cents per gallon as erroneously provided in the 1997 Act). 1997 transfer of 4.3-cents-per-gallon tax revenues The House bill deletes a provision of the 1997 Act providing that the transfer of the additional 4.3 cents per gallon in fuels tax revenues to the Highway Trust Fund and a one- time adjustment to fuels tax deposit requirements do not affect direct spending under the 1991 authorizing legislation as ``deadwood.' Effective date Date of enactment. Senate amendment Transfers of revenues to Highway Trust Fund The Senate amendment is the same as the House bill, except that the Senate amendment (as noted above) does not repeal the tire tax. Interest on Highway Trust Fund balances; unspent balances No provision. Highway Trust Fund expenditure authority The Senate amendment is the same as the House bill with respect to extending the Highway Trust fund expenditure authority through September 30, 2003. The Senate amendment updates the expenditure purposes for the Highway and Mass Transit Accounts to the purposes as included in the current Senate authorizing legislation (H.R. 2400 as amended by the Senate). The Senate amendment also is the same as the House bill with respect to specifying that expenditures from the Highway Trust Fund may occur only as provided in the Internal Revenue Code, and the clarification relating to liquidations of contract authority. Highway Trust Fund anti-deficit provisions The Senate amendment is the same as the House bill. Highway Trust Fund technical corrections The Senate amendment is the same as the House bill. 1997 transfer of 4.3 cents-per-gallon tax revenues The Senate amendment is the same as the House bill. Effective date Date of enactment. Conference agreement Transfers of revenues to Highway Trust Fund The conference agreement follows the Senate amendment. Interest on Highway Trust Fund balances; unspent balances The conference agreement follows the House bill, with a modification deleting the cancellation of a portion of the Mass Transit Account balance. Highway Trust Fund expenditure authority The conference agreement follows the House bill and the Senate amendment by updating the Highway Trust Fund expenditure purposes to include the purposes in the current authorizing legislation (H.R. 2400) as enacted and as in effect on the date of enactment. Highway Trust Fund anti-deficit provisions The conference agreement follows the House bill and the Senate amendment. Highway Trust Fund technical corrections The conference agreement follows the House bill and the Senate amendment. 1997 transfer of 4.3-cents-per-gallon tax revenues The conference agreement follows the House bill and the Senate amendment. Effective date Date of enactment. II. OTHER TRUST FUND PROVISIONS A. Aquatic Resources Trust Fund Present law Revenue transfers Gasoline and special motor fuels used in motorboats and gasoline used in small engines are subject to excise tax in the same manner and at the same rates as gasoline and special motor fuels used in highway vehicles. Of the tax revenues from motorboat and small-engine use, 6.8 cents per gallon is retained in the General Fund; 11.5 cents per gallon is transferred to the Aquatic Resources Trust Fund (``Aquatic Fund''). Under present law, transfers of the motorboat fuels tax revenues go to the Boat Safety Account of the Aquatic Fund (up to $70 million per fiscal year).<SUP>6</SUP> Of amounts in excess of $70 million, $1 million per fiscal year goes to [[Page H3934]] the Land and Water Conservation Fund (``Land and Water Fund''), and the balance goes to the Sport Fish Restoration Account of the Aquatic Fund. The authority to transfer revenues to the Aquatic Fund and Land and Water Fund is scheduled to expire after September 30, 1998. --------------------------------------------------------------------------- \6\ The unobligated balance in the Boat Safety Account is limited to $70 million. --------------------------------------------------------------------------- Revenues from the 11.5-cents-per-gallon tax rate on gasoline used in small engines is deposited in a Wetlands sub-account in the Aquatic Fund for use in wetlands conservation efforts. Expenditure authority Expenditures from the Boat Safety Account and the Land and Water Fund are subject to appropriation Acts. The Sport Fish Restoration Account has a permanent appropriation, and all monies transferred to that Account are automatically appropriated in the fiscal year following the fiscal year of receipt. Under present law, expenditures are authorized from the Boat Safety Account as follows: (1) One-half of the amount allocated to the Account are for State boating safety programs; and (2) One-half of the amount allocated to the Account are for operating expenses of the Coast Guard to defray the costs of services provided for recreational boating safety. House bill Revenue transfers The House bill extends the transfer of 11.5 cents per gallon of motorboat fuels tax revenues to the Boat Safety Account of the Aquatic Fund and of small-engine gasoline tax revenues to the Wetlands sub-account of the Aquatic Fund through September 30, 2003. In addition, the 6.8-cents-per- gallon portion of the tax on motorboat fuels and small-engine gasoline that currently is retained in the General Fund is transferred to the Aquatic Fund. This provision is phased-in, with the transfer to the Aquatic Fund of 3.4 cents per gallon for the period October 1, 1999 through September 30, 2000, and at 6.8 cents per gallon for the period October 1, 2000 through September 30, 2003. Transfers of motorboat fuels tax revenues to the Boat Safety Account are changed to equal one-half of such revenues each fiscal year, with a limit on the balance in that Account equal to no more than one-half of the prior year's motorboat fuels tax revenues. Effective date. October 1, 1998 for the transfer of the 11.5 cents-per- gallon rate to the Aquatic Fund, October 1, 1999 for the transfer of the 3.4-cents-per-gallon rate, and October 1, 2000 for the transfer of the 6.8-cents-per-gallon rate. Expenditure authority Expenditure authority for the Boat Safety Account of the Aquatic Fund is extended through September 30, 2003. The expenditure purposes of the Aquatic Fund are conformed to those in effect in the House bill as of the date of enactment of H.R. 2400. Provisions identical to those described above under the House bill for the Highway Trust Fund are incorporated into the Aquatic Fund clarifying that expenditures from the Aquatic Fund may occur only as provided in the Code. Effective date. October 1, 1998. Senate amendment Revenue transfers The Senate amendment extends the transfers of 11.5 cents per gallon of motorboat fuels tax revenues to the Boat Safety Account of the Aquatic Fund and of small-engine gasoline tax revenues to the Wetlands sub-account of the Aquatic Fund through September 30, 2003. Effective date. October 1, 1998. Expenditure authority The Senate amendment is the same as the House bill with respect to the extension of the expenditure authority for the Boat Safety Account through September 30, 2003. The expenditure purposes of the Aquatic Fund are conformed to those in effect in the Senate amendment as of the date of enactment. The Senate amendment clarifying that expenditures from the Aquatic Fund may occur only as provided in the Code is the same as the House bill provision. Effective date. October 1, 1998. Conference agreement Revenue transfers The conference agreement follows the House bill and the Senate amendment with respect to extension of transfers of 11.5 cents per gallon of motorboat fuels tax revenues to the Boat Safety Account and Wetlands sub-Account of the Aquatic Fund through September 30, 2003. The conference agreement follows the House bill in transferring additional motorboat fuels tax and small-engine gasoline revenues to the Aquatic Fund. The conference agreement provides that an additional 1.5 cents per gallon of taxes imposed during fiscal years 2002 and 2003, and an additional 2 cents per gallon thereafter, will be transferred to the Aquatic Fund. Effective date. October 1, 1998. Expenditure authority The conference agreement follows the House bill and the Senate amendment with respect to the extension of the expenditure authority for the Boat Safety Account through September 30, 2003. The expenditure purposes of the Aquatic Fund (including those of the Sport Fish Restoration Account) are conformed to those purposes in effect in the authorizing provisions of the bill as of the date of enactment. The conference agreement follows the House bill and the Senate amendment with respect to the clarification that expenditures from the Aquatic Fund may occur only as provided in the Code. Effective date. October 1, 1998. B. National Recreational Trails Trust Fund Present law The National Recreational Trails Trust fund (``Trails Fund'') was established in the Intermodal Surface Transportation Efficiency Act of 1991 (``1991 Act'). Revenues from 11.5 cents per gallon of motor fuels taxes from fuel used in nonhighway recreational vehicles <SUP>7</SUP> are authorized to be transferred from the Highway Trust Fund to the Trails Fund through September 30, 1998. Transfers to the Trails Fund are contingent on appropriations occurring from the Trails Fund. To date, no such appropriations have been enacted; thus, no actual transfers of revenues have been made to the Trails Fund. --------------------------------------------------------------------------- \7\ Nonhighway recreational fuels taxes are taxes imposed on (1) fuel used in vehicles and equipment on recreational trails or back country terrain, or (2) fuel used in camp stoves and other outdoor recreational equipment. Such revenues do not include small-engine gasoline tax revenues, which are transferred to the Aquatic Fund. --------------------------------------------------------------------------- Expenditures are authorized from the Trails Fund, subject to appropriations,<SUP>8</SUP> for allocations to States for use on trails and trail-related projects as set forth in the 1991 Act. Authorized expenditure uses include (1) acquisition of new trails and access areas, (2) maintenance and restoration of existing trails, (3) State environmental protection education programs, and (4) related program administrative costs. --------------------------------------------------------------------------- \8\ If appropriations were enacted from the Trails Fund, there is an obligational ceiling of $30 million per fiscal year under the 1991 Act. --------------------------------------------------------------------------- House bill The House bill repeals the Trails Fund, and the transfers of nonhighway recreational fuels taxes to the Trails Fund. Effective date. October 1, 1998. Senate amendment The Senate amendment is the same as the House bill. Conference agreement The conference agreement follows the House bill and the Senate amendment. (Under authorizing provisions of the bill, Highway Trust Fund expenditures are authorized for similar purposes to those of the Trails Fund.) III. ADDITIONAL REVENUE PROVISIONS A. Rail Fuels Excise Tax Present law Diesel fuel and gasoline used in trains are subject to a 5.65-cents-per-gallon excise tax. Of this amount, 0.1 cent per gallon is dedicated to the Leaking Underground Storage Tank Trust Fund; this rate is scheduled to expire after March 31, 2005. The remaining 5.55 cents per gallon is a General Fund tax, with 4.3 cents per gallon being permanently imposed and 1.25 cents per gallon being imposed through September 30, 1999. House bill The 4.3-cents-per-gallon General Fund excise tax imposed on fuel used in trains is repealed. Effective date. October 1, 2000. Senate amendment The Senate amendment repeals the 1.25-cents-per-gallon tax on fuel used in trains. Effective date. March 1, 1999. Conference agreement The conference agreement follows the Senate amendment, except for the effective date. Effective date. November 1, 1998. B. Income Tax Provisions 1. Tax-exempt financing of certain highway projects Present law Present law exempts interest on State or local government bonds from the regular income tax if the proceeds of the bonds are used to finance governmental activities of those entities and the bonds are repaid with governmental revenues. Interest on bonds issued by States or local governments acting as conduits to provide financing for private persons is taxable unless a specific exception is provided in the Code. No such exception is provided for bonds issued to provide conduit financing for privately constructed and/or privately operated toll roads and similar highway infrastructure projects. House bill No provision. Senate amendment The Senate amendment authorizes the construction of up to 15 highway infrastructure projects, such as toll roads involving private business participation. These projects are to be eligible for tax-exempt private activity [[Page H3935]] bond financing. Bonds for these projects generally are to be subject to all Code provisions governing issuance of tax- exempt private activity bonds except the annual State volume limits (sec. 146). No proceeds of these bonds may be used to finance the acquisition of land. In lieu of the State volume limits, the aggregate amount of bonds that can be issued under this pilot project is $15 billion (as allocated by the Department of Transportation in consultation with the Department of the Treasury). Conference agreement The conference agreement does not include the Senate amendment. 2. Tax treatment of parking and transit benefits Present law Under present law, qualified transportation fringe benefits provided by an employer are excluded from an employee's gross income. Qualified transportation fringe benefits include parking, transit passes, and vanpool benefits. In addition, in the case of employer-provided parking, no amount is includible in income of an employee merely because the employer offers the employee a choice between cash and employer-provided parking. Transit passes and vanpool benefits are only excludable if provided in addition to, and not in lieu of, any compensation otherwise payable to an employee. Under present law, up to $175 per month (for 1998) of employer-provided parking and up to $65 per month (for 1998) of employer-provided transit and vanpool benefits are excludable from gross income. These dollar amounts are indexed for inflation. House bill No provision. Senate amendment The Senate amendment permits employers to offer employees the option of electing cash compensation in lieu of any qualified transportation benefit, or a combination of any of such benefits. As under present law, qualified transportation benefits include employer-provided transit passes, parking, and vanpooling. Thus, under the Senate amendment, no amount is includible in gross income or wages merely because the employee is offered the choice of cash and one or more qualified transportation benefits. The amount of cash offered is includible in income and wages only to the extent the employee elects cash. In addition, the Senate amendment increases the exclusion for transit passes and vanpooling to $100 per month. The $100 amount is indexed as under present law. Further, the Senate amendment provides that there is no indexing of any qualified transportation benefit in 1999. Effective date. The provision permitting a cash option for any transportation benefit is effective for taxable years beginning after December 31, 1997; the increase in the exclusion for transit passes and vanpooling to $100 per month is effective for taxable years beginning after December 31, 2001; and indexing on the $100 amount for transit passes and vanpooling is effective for taxable years beginning after December 31, 2002. Conference agreement The conference agreement follows the Senate amendment. Thus, as under the Senate amendment, no amount is includible in gross income or wages merely because the employee is offered the choice of cash in lieu of one or more qualified transportation benefits, or a combination of such benefits. In addition, no amount is includible in income or wages merely because the employee is offered a choice among qualified transportation benefits. Effective date. The conference agreement follows the Senate amendment. 3. Purposes for which Amtrak NOL monies may be used in non- Amtrak States Present law The 1997 Act provides elective procedures that allow Amtrak to consider the tax attributes of its predecessors in the use of its net operating losses. The election is conditioned on Amtrak agreeing to make payments equal to one percent of the amount it receives as a result of the election to each of the non-Amtrak States. The non-Amtrak states are required to spend these monies to finance qualified expenses. Qualified expenses include the capital costs connected with the provision of intercity passenger rail and bus service, the purchase of intercity rail service from Amtrak, and the payment of interest and principle on obligations incurred for a qualified purpose. Any amounts not spent for qualified purposes by 2010 must be returned to the Treasury. House bill No provision. Senate amendment The Senate amendment expands the list of qualified expenses to include: (1) capital expenditures related to State-owned rail operations in the State; (2) projects eligible to receive funding under section 5309, 5310, or 5311 of Title 49; (3) projects that are eligible to receive funding under section 130 or 152 of Title 23; (4) upgrading and maintenance of intercity primary and rural air service facilities, including the purchase of air service between primary and rural airports and regional hubs; and (5) the provision of passenger ferryboat service within the State. Effective date. The provision is effective as if included in the Taxpayer Relief Act of 1997 (effective on August 5, 1997). Conference agreement The conference agreement follows the Senate amendment with further additions to the list of qualified expenses. Additional qualified purposes added by the conference agreement include harbor improvements and certain highway improvements that are eligible to receive funding under section 103, 133, 144, and 149 of Title 23. Effective date. The conference agreement follows the Senate amendment. 4. Tax treatment of certain Federal environmental grants Present law Certain Federal grants are excluded from income with taxpayers receiving no basis in assets financed with the grant monies. Other Federal grant programs result in income exclusion when the grant is received, but taxpayers receive basis in the grant-financed property. House bill No provision. Senate amendment The Senate amendment provides that, to the extent provided under present law, grants under the authorizing provisions of the Senate amendment relating to a Congestion Mitigation and Air Quality (``CMAQ'') Program are not includible in taxable income when received, and that no credit or other deduction is allowed to taxpayers with respect to the property (or other expenditures) financed directly or indirectly with the CMAQ funds. The basis of such property is to be reduced by the portion of the cost of the property that is attributable to the CMAQ payment. Conference agreement The conference agreement does not include the Senate amendment. Limited Tax Benefits in the Revenue Title Subject to the Line Item Veto Act Present Law The Line Item Veto Act amended the Congressional Budget and Impoundment Act of 1974 to grant the President the limited authority to cancel specific dollar amounts of discretionary budget authority, certain new direct spending, and limited tax benefits. The Line Item Veto Act provides that the Joint Committee on Taxation is required to examine any revenue or reconciliation bill or joint resolution that amends the Internal Revenue Code of 1986 prior to its filing by a conference committee in order to determine whether or not the bill or joint resolution contains any ``limited tax benefits,'' and to provide a statement to the conference committee that either (1) identifies each limited tax benefit contained in the bill or resolution, or (2) states that the bill or resolution contains no limited tax benefits. The conferees determine whether or not to include the Joint Committee on Taxation statement in the conference report. If the conference report includes the information from the Joint Committee on Taxation identifying provisions that are limited tax benefits, then the President may cancel one or more of those, but only those, provisions that have been identified. If such a conference report contains a statement from the Joint Committee on Taxation that none of the provisions in the conference report are limited tax benefits, then the President has no authority to cancel any of the specific tax provisions, because there are no tax provisions that are eligible for cancellation under the Line Item Veto Act. Conference Statement The Joint Committee on Taxation has determined that the revenue title to H.R. 2400 contains no provision involving limited tax benefits within the meaning of the Line Item Veto Act. Pursuant to the order of the House on April 1, 1998, the Speaker appointed the following conferees for consideration of the House bill (except title XI) and the Senate amendment (except title VI), and modifications committed to conference: Bud Shuster, Thomas E. Petri, Sherwood L. Boehlert, Jay Kim, Stephen Horn, Tillie K. Fowler, Richard H. Baker, Robert W. Ney, Jack Metcalf, James L. Oberstar, Nick Rahall, Robert A. Borski, Robert E. Wise, Jr., Jim Clyburn, Bob Filner, As additional conferees from the Committee on Commerce, for consideration of provisions in the House bill and Senate amendment relating to the Congestion Mitigation and Air Quality Improvement Program; and sections 124, 125, 303, and 502 of the House bill; and sections 1407, 1601, 1602, 2103, 3106, 3301-3302, 4101-4104, and 5004 of the Senate amendment and modifications committed for conference: Tom Bliley, Michael Bilirakis, John D. Dingell, Provided that Mr. Tauzin is appointed in lieu of Mr. Bilirakis for consideration of sections [[Page H3936]] 1407, 2103, and 3106 of the Senate amendment. Billy Tauzin, As additional conferees from the Committee on Ways and Means, for consideration of title XXI of the House bill and title VI of the Senate amendment, and modifications committed to conference: Jim Nussle, Kenny C. Hulshof, As additional conferees from the Committee on Ways and Means, for consideration of title XXI of the House bill and title VI of the Senate amendment, and modifications committed to conference: Charles B. Rangel, Managers on the Part of the House. From the Committee on Environment and Public Works: John H. Chafee, John Warner, Bob Smith, Dirk Kempthorne, Jim Inhofe, Craig Thomas, Christopher S. Bond, Tim Hutchinson, Wayne Allard, Max Baucus, Daniel Patrick Moynihan, Harry Reid, Bob Graham, Joseph Lieberman, Barbara Boxer, From the Committee on Finance: William V. Roth, Jr., Chuck Grassley, Orrin Hatch, John Breaux, Kent Conrad, From the Committee on Banking, Housing, and Urban Affairs: Alfonse D'Amato, Phil Gramm, Paul Sarbanes, Chris Dodd, From the Committee on Commerce, Science, and Transportation: Ernest Hollings, From the Committee on the Budget: Pete Domenici, Don Nickles, Patty Murray, Managers on the Part of the Senate. ____________________