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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, progra