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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.

                          ____________________


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