ALCOHOL INCENTIVE GRANTS (SEC. 408)

The Committee proposes a total limitation of $14,245,000 for obligations to be incurred under the section 408 Alcohol Incentive Grants Program. This is $3,655,000 below the budget request and $150,000 below the House allowance. The recently enacted Public Law 100-17, extended from 3 to 5 the number of years a State may receive section 408 incentive grants. The lower obligation ceiling will not affect the amount of total resources available over time for this program.

SAFETY EDUCATION AND INFORMATION GRANTS (SEC. 209)

The Committee proposes to limit cumulative section 209 obligations at $4,750,000. This is the same level as the budget request. The Committee does not concur with House report language which directs that $11,250,000 of unobligated balances be used in lieu of direct appropriations for a highway safety education and enforcement campaign designed to promote safety belt use.

The Committee notes that Congress intended section 209 as a national media effort to enhance a full range of highway safety initiatives, not just occupant protection. In fact, the Surface Transportation and Uniform Relocation Assistance Act of 1987 directs that section 209 funds not be used for any education or information relative to the implementation of Federal motor vehicle safety standard 208. Moreover, the agency has not completed the first phase of the section 209 program demonstration pilot projects. Until the evaluation reports on these projects are provided to Congress, the release of unobligated balances for national media activities would be premature.

In addition to the authorization constraints, the Committee is concerned about the House action to provide just $1,000,000 of direct appropriations for the Occupant Protection Program and limit this funding to passive restraints education efforts. This would preclude the majority of planned assistance to States for increased safety belt and child restraint usage. The Committee, therefore, recommends that requested funding for the Occupant Protection Program be provided with direct appropriations in the "Operations and research" account.

OTHER PROVISIONS

The Committee has included bill language which limits the amount of funds available for section 402 safety grant administration to $4,850,000. This is the same as the House allowance.

The Committee has repeated general provision bill language contained in the House bill which prohibits the use of funds to implement section 404 of title 23 of the United States Code.

FEDERAL RAILROAD ADMINISTRATION

SUMMARY OF FISCAL YEAR 1988 PROGRAM

The Federal Railroad Administration became an operating administration within the Department of Transportation on April 1, 1967. It incorporated the Bureau of Railroad Safety from the Interstate Commerce Commission, the Office of High Speed Ground Transportation from the Department of Commerce, and the Alaska Railroad from the Department of the Interior. The Federal Railroad Administration is responsible for planning, developing, and administering programs to achieve safe operating and mechanical practices in the railroad industry. Grants to the National Railroad Passenger Corporation (Amtrak) and other financial assistance programs to rehabilitate and improve the railroad industry's physical plant are also administered by the Federal Railroad Administration.

The Committee recommends new appropriations totaling $683,660,000 for the activities of the Federal Railroad Administration for fiscal year 1988. This is $623,544,000 more than the budget request, $22,162,000 less than the amount provided for fiscal year 1987, and $15,565,000 less than the House allowance. These comparisons do not include the offsets associated with the redeemable preference share loan asset sales and the receipt of repaid debt borrowings.

The following table summarizes the Committee recommendations:

1 Budget proposes research and development at $9,923,000 be merged into "Railroad safety" account.

The Office of the Administrator provides support and guidance on critical issues concerning the railroad industry and the day-to-day operations of the Federal Railroad Administration. The appropriation includes budget activities, executive direction and administration and policy support aimed at resolving critical problems in the railroad industry. Beginning in fiscal year 1987, activities previously funded in the "Rail service assistance" account were consolidated into this account. Programs funded are (1) local rail service assistance grants-provides financial assistance to the States for rail planning and capital improvements on light density rail lines; (2) administration and special projects—includes the salaries and related expenses for administering FRA's assistance programs; and (3) Washington Union Stationmaintenance, operation, and rental.

LOCAL RAIL SERVICE ASSISTANCE PROGRAM

The local rail service assistance [LRSA] program was established by the Regional Rail Reorganization Act of 1973 to provide financial support to States for the continuation of rail freight service on abandoned light density lines in the Northeast. The Railroad Revitalization and Regulatory Reform Act of 1976 expanded the program to all States. In 1978 the program was further amended to allow capital assistance for rehabilitation prior to, rather than after abandonment. Amendments in 1981 prohibited the use of these funds for operating subsidies.

The existing program focuses on planning and track rehabilitation and requires a Federal/State matching ratio of 70/30 percent.

The Committee has recommended a funding level of $8,000,000, the authorized level for fiscal year 1988. The Committee has included bill language requiring that $5,500,000 of the $8,000,000 available for LRSA be administered on a discretionary basis. In addition, the Committee has included the bill language, contained in the House bill, which would distribute $2,500,000 to the States under the section 5(h)(2) and section 5(i) programs and limits the allocation for each State to $50,000 per State.

Of the discretionary funds available for local rail service assistance, the Committee directs that funds be reserved for the following projects in the amounts specified:

In addition to the above earmarks from the fiscal year 1988 appropriation, the Committee expects that approximately $2,000,000 of previously appropriated, fiscal year 1987, entitlement money will be made available on April 1, 1988, on a discretionary basis. After complying with the above earmarks, the Committee expects the following applications to receive priority consideration: the Alleghany Railroad's Emporium to Erie, PA, rail line, and the Canton to East Wye switch rail line in South Dakota. The Committee understands that the Ohio line does not presently meet FRA criteria for rail service assistance funds because it has not yet been approved by the Interstate Commerce Commission for abandonment. The Committee understands, however, it will be subject to such a proceeding in the near future.

The House has included bill language which is repeated by the Committee requiring that a State must expend LRSA funds granted through fiscal year 1982 before it can apply for fiscal year 1988 discretionary funds. This language is similar to language contained in previous appropriations acts.

WASHINGTON UNION STATION

The Committee recommends a level of $3,000,000 for rental payments for Washington's Union Station.

The House has not approved the requested $3,500,000 for Washington Union Station rental payments and expects necessary payments to be made by the Union Station Redevelopment Corporation from Federal funds previously provided to it by Amtrak. Amtrak funds totaling $70,000,000 previously provided were to be used for the renovation and repair of the station. The Committee expects the funds to be used for the purposes originally intended and, therefore, includes a new appropriation for rent payments. In addition to the Amtrak funds, $40,000,000 of interstate highway funds for the construction of the

parking garage are being provided by the District of Columbia. The Committee expects the station construction to be completed and opened in fiscal year 1988 and that revenues will be generated from the parking garage and used to offset a portion of the total rent requirement of $3,500,000.

The Committee has included the bill language contained in the House bill which prohibits the acquisition, sale, or transference of Washington Union Station without the approval of the Senate and House Committees on Appropriations.

SALARIES AND EXPENSES

This activity provides for salaries and related expenses for the Office of the Administrator and his immediate staff, Executive Director and staff, Chief Counsel, civil rights, public affairs, budget, administration, policy, and passenger freight services. The budget request was reduced to reflect expected administrative savings.

CONTRACTUAL SUPPORT

This activity develops positions regarding various proposed structural changes in the railroad industry. Contractual support is also used to conduct internal studies dealing with traffic, economic forecasting, financial condition, and other factors that contribute to an efficient national freight railroad network.

ALASKA RAILROAD WORKERS' COMPENSATION

This activity provides for the necessary payment of lump sum workers' compensation payments to former employees of the Alaska Railroad, and to close out the Federal Government's liability for unemployment compensation payments made by the State of Alaska to railroad employees during the period of Federal ownership.

RAIL INFRASTRUCTURE STUDY

The Secretary of Transportation shall submit to the Senate and House Committees on Appropriations a report on deferred maintenance and delayed capital improvements on class II and class III railroads.

The survey and analysis will encompass an estimate of the extent of deferred maintenance on class II and class III railroads in the United States, with particular attention to the new railroads being created by the transfer of lines from the class I railroads as an alternative to abandonment. The study shall include, but not be limited to:

1. An estimate of the deferred maintenance and delayed capital improvements on the class II and class III railroads.

2. An analysis of the availability of private sector financing to fund these projects.

3. An estimate of the traffic that would be diverted from rail to highway if these railroads ceased operation.