House Appropriations Committee Issues Report on DOT, HUD, Related Agencies Appropriations Bill, 2018 (Part 4 of 8)

WASHINGTON, July 29 -- The House Appropriations Committee issued a report (H.Rpt. 115-237) on legislation (H.R. 3353) in explanation of the accompanying bill making appropriations for the Departments of Transportation, and Housing and Urban Development, and related agencies for the fiscal year ending September 30, 2018. The report was advanced by Rep. Mario Diaz-Balart, R-Fla., on July 21.

Federal Transit Administration

The Federal Transit Administration (FTA) was established as a component of the Department of Transportation on July 1, 1968, when most of the functions and programs under the Federal Transit Act (78 Stat. 302; 49 U.S.C. 1601 et seq.) were transferred from the Department of Housing and Urban Development. Known as the Urban Mass Transportation Administration until enactment of the Intermodal Surface Transportation Efficiency Act of 1991, the Federal Transit Administration administers federal financial assistance programs for planning, developing, and improving comprehensive mass transportation systems in both urban and non-urban areas.

The most recent authorization for the programs under the Federal Transit Administration is contained in the Fixing America's Surface Transportation (FAST) Act (P.L. 114--94) and extensions. Annual Appropriations Acts included annual limitations on obligations for the transit formula grants programs, and direct appropriations of budget authority from the General Fund of the Treasury for FTA's administrative expenses, some research programs, and capital investment grants.

ADMINISTRATIVE EXPENSES

Appropriation, fiscal year 2017....................... $113,165,000

Budget request, fiscal year 2018...................... 110,794,692

Recommended in the bill............................... 110,794,692

Bill compared with:

Appropriation, fiscal year 2017................... -2,370,308

Budget request, fiscal year 2018.................. - - -

COMMITTEE RECOMMENDATION

The Committee recommends a total of $110,794,692 for FTA's administrative expenses, equal to the budget request and $2,370,308 below the fiscal year 2017 enacted level. The Committee's recommendation provides these funds from the General Fund, as usual.

Operating plans.--The Committee reiterates its direction from previous years, which requires the FTA's operating plan to include a specific allocation of administrative expenses resources. The operating plan should include a delineation of full time equivalent employees, for the following offices: Office of the Administrator; Office of Administration; Office of Chief Counsel; Office of Communications and Congressional Affairs; Office of Program Management; Office of Budget and Policy; Office of Research, Demonstration and Innovation; Office of Civil Rights; Office of Planning and Environment; Office of Safety and Oversight; and Regional Offices. Further, the operating plan must include any new programs or changes to the budget request, including new grant programs. In addition, the Committee directs FTA to notify the House and Senate Committees on Appropriations at least thirty days in advance of any change that results in an increase or decrease of more than five percent from the initial operating plan submitted to the Committees for fiscal year 2019.

Budget justifications.--The Committee strongly encourages FTA to maintain the format and content in the fiscal year 2019 documents.

Transit security.--The Committee continues bill language prohibiting FTA from creating a permanent office of transit security.

Annual new starts report.--The Committee has again included bill language requiring FTA to submit the annual new starts report with the initial submission of the budget request due in February, 2018.

Full funding grant agreements (FFGAs).--Title 49 requires that FTA notify the House and Senate Committees on Appropriations as well as the House Committee on Transportation and Infrastructure and the Senate Committee on Banking sixty days before executing a full funding grant agreement. In its notification to the House and Senate Committees on Appropriations, the Committee directs FTA to include the following: (1) a copy of the proposed full funding grant agreement; (2) the total and annual federal appropriations required for that project; (3) yearly and total federal appropriations that can be reasonably planned or anticipated for future FFGAs for each fiscal year through 2022; (4) a detailed analysis of annual commitments for current and anticipated FFGAs against the program authorization, by individual project; (5) a financial analysis of the project's cost and sponsor's ability to finance the project, which shall be conducted by an independent examiner, and which shall include an assessment of the capital cost estimate and the finance plan; (6) the source and security of all public- and private-sector financial instruments; (7) the project's operating plan, which enumerates the project's future revenue and ridership forecasts; and (8) a listing of all planned contingencies and possible risks associated with the project.

The Committee continues the direction to FTA to inform the House and Senate Committees on Appropriations in writing thirty days before approving schedule, scope, or budget changes to any full funding grant agreement. Correspondence relating to changes shall include any budget revisions or program changes that materially alter the project as originally stipulated in the full funding grant agreement, including any proposed change in rail car procurements.

In addition, the Committee directs FTA to continue reporting monthly to the House and Senate Committees on Appropriations on the status of each project with a full funding grant agreement or that is within two years of a full funding grant agreement.

Public transit programs provide a significant benefit to individuals who otherwise have no means of transportation.Whether it is to get to work, school, or a doctor's appointment, public transit provides an important service, especially in rural areas where other private transit services are not available. The Committee directs FTA to review the advantages and disadvantages of adding public transit as a qualifying use for Public Benefit Conveyance, and submit a report to the House and Senate Committees on Appropriations within 180 days of enactment of this Act.

TRANSIT FORMULA GRANTS

(LIQUIDATION OF CONTRACT AUTHORIZATION)

(LIMITATION ON OBLIGATIONS)

(HIGHWAY TRUST FUND)

(TABLE OMITTED)

The FAST Act provides contract authority for the transit formula grant programs from the mass transit account of the highway trust fund. These programs include: urbanized area formula, state of good repair grants, formula grants for rural areas, growing states and high density states, mobility for seniors and persons with disabilities, bus and bus facilities grants, bus testing facilities, planning programs, transit oriented development, a pilot program for enhanced mobility, public transportation innovation, technical assistance and workforce development, and the National Transit Database. The Appropriations Act sets an annual obligation limitation for such authority. This account is the only FTA account funded from the Highway Trust Fund.

COMMITTEE RECOMMENDATION

The Committee recommends an obligation limitation of $9,733,353,407 for the formula programs and activities, the same as the budget request and the program authorization. The Committee's recommendation also includes $10,300,000,000 in liquidating funds, which is $500,000,000 less than the fiscal year 2017 enacted level, and equal to the budget request.

The Committee strongly encourages the Federal Transit Administration to follow the guidance set forth in the FAST Act when developing scoring criteria for the competitive Bus and Bus Facilities Program. Per the legislation, the age and mileage of fleet should be the primary consideration for scoring applications.

TECHNICAL ASSISTANCE AND TRAINING

Appropriation, fiscal year 2017....................... $5,000,000

Budget request, fiscal year 2018...................... - - -

Recommended in the bill............................... 5,000,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +5,000,000

The FAST Act authorizes FTA to provide technical assistance under section 5314 of title 49 for human resource and training activities, and workforce development programs.

COMMITTEE RECOMMENDATION

The Committee recommends $5,000,000 for technical assistance and training authorized under section 5314(b)(2), which is equal to the fiscal year 2017 level and $5,000,000 above the request. In addition to the directly appropriated funds, another $9,000,000 is provided through the obligation limitation under the header "Transit formula grants."

Of the amount provided for Technical Assistance and Workforce Development for fiscal year 2018, the Committee directs FTA to ensure that no less than $5,000,000 from the general fund will be available for technical assistance and training to increase mobility for people with disabilities and older adults.

CAPITAL INVESTMENT GRANTS

Appropriation, fiscal year 2017....................... $2,412,631,000

Budget request, fiscal year 2018...................... 1,232,000,000

Recommended in the bill............................... 1,752,989,851

Bill compared with:

Appropriation, fiscal year 2017................... -659,641,149

Budget request, fiscal year 2018.................. +520,989,851

Grants for capital investment to rail or other fixed guideway transit systems are awarded to public bodies and agencies (transit authorities and other state and local public bodies and agencies thereof) including states, municipalities, other political subdivisions of states; public agencies and instrumentalities of one or more states; and certain public corporations, boards and commissions under state law.

COMMITTEE RECOMMENDATION

The Committee recommends $1,752,989,851 for capital investment grants which is $659,641,149 below the fiscal year 2017 enacted level and $520,989,851 above the budget request.

The Committee supports the President's commitment to invest in infrastructure, and therefore maintains its position to recognize the need for a robust Capital Investment Grant Program. The Committee directs FTA to continue to advance eligible projects into Project Development, Engineering, and Construction through the Capital Investment Grant evaluation, rating, and approval process.

Specifically, the Committee directs the Secretary to allow a project to enter into project development when the applicant satisfies the requirements; to advance a project into project engineering when that project satisfies the requirements; to negotiate a construction grant with the project sponsor for every project that receives a medium rating or higher, submit the notification to Congress promptly after conclusion of the negotiation of the construction grant agreement, and execute the construction grant agreement within 45 days of providing such notification to Congress if the project continues to meet the requirements; to enter into a full funding grant agreement for any new fixed guideway capital project and core capacity improvement project that has met the requirements immediately after completion of the 30-day notice period for such projects; and enter into a grant agreement for any small start project that has met the requirements immediately after completion of the 10-day notice period for such projects.

The Committee directs FTA to continue to update this Committee on the status of projects that are in the current funding pipeline, and assist those project sponsors who seek to enter into and advance through the funding pipeline of the Capital Investment Grant process.

The Committee directs FTA to issue policy guidance on the Program of Interrelated Projects regarding project eligibility, completing steps in the process, project evaluation, and rating.

The fiscal year 2018 recommendation provides $1,007,929,851 for all current and on-going new starts full funding grant agreements (FFGA), consistent with the agreed-upon payout schedules for each project that is listed in the President's budget request, $145,700,000 for the core capacity program, of which, $100,000,000 is for the project listed in the President's budget request, and $45,700,000 is available for projects anticipating an FFGA in fiscal year 2018, $182,000,000 for small start projects, and $400,000,000 for new projects that meet the criteria of section 5309(q) of title 49.

Finally, the Committee's recommendation includes $17,360,000 (about one percent) for oversight activities related to the investments of this account.

GRANTS TO THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

Appropriation, fiscal year 2017....................... $150,000,000

Budget request, fiscal year 2018...................... 149,714,850

Recommended in the bill............................... 150,000,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +285,150

Section 601 of Division B of the Passenger Rail Investment and Improvement Act of 2008 (PRIIA) (Public Law 110-432) authorized $1,500,000,000 over a ten-year period for preventive maintenance and capital grants for the Washington Metropolitan Area Transportation Authority (WMATA). The law requires that the Federal funds be matched dollar-for-dollar by Virginia, Maryland, and the District of Columbia in equal proportions. The compact required under the law has been established, and Virginia, Maryland and the District of Columbia have all committed to providing $50,000,000 each in local matching funds.

COMMITTEE RECOMMENDATION

The Committee recommendation includes $150,000,000 for safety capital grants for WMATA, which is $285,150 greater than the budget request and equal to the fiscal year 2017 enacted level.

The Committee directs WMATA to continue addressing the safety issues within the agency, specifically, those identified, and in many cases mandated by the NTSB and FTA. WMATA is further directed to continue implementing any and all corrective actions to address financial, contracting, and accounting concerns raised by FTA's financial management oversight audit.

Finally, should the WMATA board endorse any effort to defer maintenance, or move funds from maintenance and safety to operating expenses in order to address an operating budget shortfall, the Committee will view those budgetary shifts as a lack of commitment to the spirit in which PRIIA funds were provided and the Committee will consider its financial contributions accordingly.

ADMINISTRATIVE PROVISIONS--FEDERAL TRANSIT ADMINISTRATION

Section 160. The Committee continues the provision that exempts previously made transit obligations from limitations on obligations.

Section 161. The Committee continues the provision that allows funds appropriated for capital investment grants and bus and bus facilities not obligated by September 30, 2022, plus other recoveries to be available for other projects under 49 U.S.C. 5309.

Section 162. The Committee continues the provision that allows for the transfer of prior year appropriations from older accounts to be merged into new accounts with similar, current activities.

Section 163. The Committee continues the provision prohibiting funds in this Act from being used to advance a specific line in Harris County, Texas without benefit of a local election.

Section 164. The Committee includes a provision prohibiting funds to enter into an FFGA with a Federal share greater than fifty percent.

Saint Lawrence Seaway Development Corporation

OPERATIONS AND MAINTENANCE

(HARBOR MAINTENANCE TRUST FUND)

Appropriation, fiscal year 2017....................... $36,028,000

Budget request, fiscal year 2018...................... 28,346,012

Recommended in the bill............................... 31,346,012

Bill compared with:

Appropriation, fiscal year 2017................... -4,681,988

Budget request, fiscal year 2018.................. +3,000,000

The Great Lakes Saint Lawrence Seaway System, located between Montreal and Lake Erie, is a binational, 15-lock system jointly operated by the U.S. Saint Lawrence Seaway Development Corporation (SLSDC) and its Canadian counterpart, the Canadian St. Lawrence Seaway Management Corporation. The SLSDC was established by the St. Lawrence Seaway Act of 1954 and is a wholly owned government corporation and an operating administration of the U.S. Department of Transportation (DOT). The SLSDC is charged with operating and maintaining the U.S. portion of the St. Lawrence Seaway. This responsibility includes the two U.S. locks in Massena, New York, vessel traffic control in portions of the St. Lawrence River and Lake Ontario, and trade development functions to enhance the utilization of the St. Lawrence Seaway.

The Water Resources Development Act of 1986 authorized the Harbor Maintenance Trust Fund as a source of appropriations for SLSDC operations and maintenance. Additionally, the SLSDC generates non-federal revenues which can then be used for operations and maintenance.

COMMITTEE RECOMMENDATION

The Committee recommends a total appropriation of $31,346,012 to fund the operations, maintenance, and capital asset renewal needs of the SLSDC. This funding level is $4,681,988 below the fiscal year 2017 enacted level and $3,000,000 the budget request. Of the amount provided, the Committee directs $12,500,000 be used for the asset renewal program. The Committee continues the direction to the SLSDC to provide semiannual reports consistent with the requirements stated in the Explanatory Statement of the Department of Transportation Appropriations Act of 2009.

Maritime Administration

The Maritime Administration (MARAD) is responsible for programs that strengthen the U.S. maritime industry in support of the Nation's security and economic needs, as authorized by the Merchant Marine Act of 1936. MARAD's mission is to promote the development and maintenance of an adequate, well-balanced United States merchant marine, sufficient to carry the Nation's domestic waterborne commerce and a substantial portion of its waterborne foreign commerce, and capable of serving as a naval and military auxiliary in time of war or national emergency.

MARAD, working with the Department of Defense (DoD), helps provide a seamless, time-phased transition from peacetime to wartime operations, while balancing the defense and commercial elements of the maritime transportation system. MARAD also manages the maritime security program, the voluntary intermodal sealift agreement program and the ready reserve force, which assures DoD access to commercial and strategic sealift and associated intermodal capability. Further, MARAD's education and training programs through the U.S. Merchant Marine Academy and six state maritime academies help create skilled U.S. merchant marine officers.

MARITIME SECURITY PROGRAM

Appropriation, fiscal year 2017....................... $300,000,000

Budget request, fiscal year 2018...................... 210,000,000

Recommended in the bill............................... 300,000,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +90,000,000

The purpose of the Maritime Security Program (MSP) is to maintain and preserve a U.S. flag merchant fleet to serve the national security needs of the United States. The MSP provides direct payments to U.S. flagship operators engaged in U.S.- foreign trade. Participating operators are required to keep the vessels in active commercial service and are required to provide intermodal sealift support to the Department of Defense in times of war or national emergency.

COMMITTEE RECOMMENDATION

The Committee recommends $300,000,000 for the maritime security program, consistent with the authorized funding level, which is equal to the amount provided in fiscal year 2017 and $90,000,000 above the request. Funds are available until expended.

OPERATIONS AND TRAINING

Appropriation, fiscal year 2017....................... $175,560,000

Budget request, fiscal year 2018...................... 171,820,000

Recommended in the bill............................... 175,620,000

Bill compared with:

Appropriation, fiscal year 2017................... +60,000

Budget request, fiscal year 2018.................. +3,800,000

The operations and training account provides funding for headquarters and field offices to administer and direct MARAD operations and programs. The account also provides funding for the operation of the U.S. Merchant Marine Academy and financial assistance to the six state maritime academies.

COMMITTEE RECOMMENDATION

The Committee recommends $175,620,000 for MARAD operations and training expenses, $60,000 above the fiscal year 2017 enacted level and $3,800,000 above the budget request.

MARAD operations.--Of the funds provided, a total of $56,020,000 is for headquarters and regional office operations, of which $3,000,000 is for maritime environment and compliance program expenses. The recommendation does not provide funding for the Marine Highways Program.

The Committee continues the reporting requirement that MARAD submit information on the number of vacancies at MARAD headquarters and regional offices, and the duties associated with each vacancy concurrent with the fiscal year 2019 budget submission. The Committee's recommendation assumes no new FTE in the new fiscal year.

United States Merchant Marine Academy.--The U.S. Merchant Marine Academy (the Academy or USMMA) provides educational programs for men and women to become shipboard officers and leaders in the maritime industry. The Committee's funding recommendation includes a total of $84,400,000 in fiscal year 2018 for the USMMA, of which up to $66,400,000 is for Academy operations and not less than $18,000,000 is for capital improvements. The Committee's recommendation includes funding for an attorney dedicated to providing victims of sexual assault and harassment legal advice, consistent with other Federal service academies, $679,000 as requested for seawall repairs, funding for the architecture and engineering work associated with Patten Hall, and upgrades for Fitch Hall. In addition, $2,000,000 is available for gate access control.

State maritime academies.--The Committee recommends $35,200,000 for the state maritime academies. Of the funds provided, $3,000,000 is for direct payments, $2,400,000 is for student payments, and $1,800,000 is for fuel assistance.

Schoolships.--The Committee's recommendation for the state maritime academies includes $22,000,000 for the repair and maintenance of existing schoolships. Further, another $6,000,000 is recommended for the construction of a common schoolship for maritime academies under MARAD.

Sexual assault reporting.--The Committee requests an updated report within 120 days of enactment of this Act that: (1) details the USMMA's current system for reporting and investigating allegations of sexual harassment and assault at the Academy and during Sea Year; (2) details the sexual assault and sexual harassment prevention training programs for students at the Academy and at sea; (3) details the industry implementation of sexual assault and sexual harassment prevention and response best practices in the commercial Sea Year program; (4) details the number of settlements stemming from incidence of sexual assault and sexual harassment occurring during the commercial Sea Year program over the last five years, regardless of whether or not USMMA is a party to such settlements, and any actions USMMA takes in response to such settlements; and (5) compares student sentiment in Sea Year sailings under the revised Sea Year program with a similar cohort under the old program guidelines.

ASSISTANCE TO SMALL SHIPYARDS

Appropriation, fiscal year 2017....................... $10,000,000

Budget request, fiscal year 2018...................... - - -

Recommended in the bill............................... 3,000,000

Bill compared with:

Appropriation, fiscal year 2017................... -7,000,000

Budget request, fiscal year 2018.................. +3,000,000

As authorized under section 54101 of title 46, the Assistance to Small Shipyards program provides assistance in the form of grants, loans, and loan guarantees to small shipyards for capital improvements and training programs.

COMMITTEE RECOMMENDATION

The Committee recommends $3,000,000 for Assistance to Small Shipyards, $7,000,000 below the fiscal year 2017 enacted level and $3,000,000 above the budget request.

SHIP DISPOSAL

Appropriation, fiscal year 2017....................... $34,000,000

Budget request, fiscal year 2018...................... 9,000,000

Recommended in the bill............................... 9,000,000

Bill compared with:

Appropriation, fiscal year 2017................... -25,000,000

Budget request, fiscal year 2018.................. - - -

MARAD serves as the Federal government's disposal agent for government-owned merchant vessels weighing 1,500 gross tons or more. The ship disposal program provides resources to dispose of obsolete merchant-type vessels in the National Defense Reserve Fleet (NDRF). The Maritime Administration was required by Public Law 106-398 to dispose of its obsolete inventory by the end of 2006. These vessels pose a significant environmental threat due to the presence of hazardous substances such as asbestos and solid and liquid polychlorinated biphenyls (PCBs).

COMMITTEE RECOMMENDATION

The Committee recommends $9,000,000 for ship disposal activities, $25,000,000 below the fiscal year 2017 enacted level and equal to the budget request. The recommendation includes $6,000,000 to dispose of four non-retention NDRF vessels and $3,000,000 to maintain the NS SAVANNAH in protective storage in accordance with the Nuclear Regulatory Commission's license requirements. Funds are available until expended.

The Committee notes that the fiscal year 2017 Appropriation Act provided MARAD with funding to dispose of the final two non-retention vessels held in the Suisun Bay Reserve Fleet and covered by the April 2010 California court consent decree.

Finally, the Committee again encourages MARAD to explore the possibility of making costs associated with maintenance and disposal of the NS SAVANNAH an eligible activity at the National Maritime Heritage Grant program in the 2019 request.

MARITIME GUARANTEED LOAN (TITLE XI) PROGRAM

(INCLUDING TRANSFER OF FUNDS)

Appropriation, fiscal year 2017....................... $3,000,000

Budget request, fiscal year 2018...................... - - -

Recommended in the bill............................... 3,000,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +3,000,000

The maritime guaranteed loan program, as provided for by Title XI of the Merchant Marine Act of 1936, provides for guaranteed loans for purchasers of ships from the U.S. shipbuilding industry and for modernization of U.S. shipyards.

COMMITTEE RECOMMENDATION

The Committee recommends $3,000,000 for the maritime guaranteed loan (Title XI) Program, which is equal to the fiscal year 2017 enacted level and $3,000,000 above the budget request. The recommendation includes bill language that transfers Title XI administrative expenses to the National Surface Transportation and Innovative Finance Bureau to administer the program.

ADMINISTRATIVE PROVISIONS--MARITIME ADMINISTRATION

Section 170. The Committee continues a provision that allows the Maritime Administration to furnish utilities and services and make repairs to any lease, contract, or occupancy involving government property under the control of MARAD and rental payments shall be paid into the Treasury as miscellaneous receipts.

Section 171. The Committee continues a provision regarding MARAD ship disposal.

Section 172. The Committee includes a provision modifying penalty wages regarding foreign and intercostal voyages and coast-wise voyages.

Pipeline and Hazardous Materials Safety Administration

The Pipeline and Hazardous Materials Safety Administration (PHMSA) administers nationwide safety programs designed to protect the public and the environment from risks inherent in the commercial transportation of hazardous materials by pipeline, air, rail, vessel, and highway. Many of these materials are essential to the national economy. The agency's highest priority is safety, and it uses safety management principles and security assessments to promote the safe transport of hazardous materials and the security of the nation's pipelines.

OPERATIONAL EXPENSES

Appropriation, fiscal year 2017....................... $22,500,000

Budget request, fiscal year 2018...................... 20,960,000

Recommended in the bill............................... 20,500,000

Bill compared with:

Appropriation, fiscal year 2017................... -2,000,000

Budget request, fiscal year 2018.................. -460,000

This appropriation finances the operational support costs for PHMSA, including agency-wide functions of administration, management, policy development, legal counsel, budget, financial management, civil rights, human resources, acquisition services, information technology, and governmental and public affairs.

COMMITTEE RECOMMENDATION

The Committee recommends $20,500,000 for PHMSA operational expenses. This is $2,000,000 below the fiscal year 2017 enacted level, and $460,000 below the budget request.

HAZARDOUS MATERIALS SAFETY

Appropriation, fiscal year 2017....................... $57,000,000

Budget request, fiscal year 2018...................... 55,513,000

Recommended in the bill............................... 57,000,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +1,487,000

The hazardous materials safety program advances the safe and secure transport of hazardous materials (hazmat) in commerce by air, truck, railroad and vessel. PHMSA evaluates hazmat safety risks, develops and enforces regulations for transporting hazmat, educates shippers and carriers, investigates hazmat incidents and failures, conducts research, and provides grants to improve emergency response to transportation incidents involving hazmat.

COMMITTEE RECOMMENDATION

The Committee recommends $57,000,000, which is the same as the fiscal year 2017 enacted level and $1,487,000 above the budget request. This funding level supports the agency's existing hazardous materials safety program, including prior year increases provided to support the safe transport of energy products. Funding is provided to continue research on hazardous petroleum products, including work with the Department of Energy on test methods for crude oil, carrying out combustion experiments, and modeling to develop hazard profiles of different crude oils. The Committee recommends $7,570,000 of the total to remain available for three years for long-term research and development contracts.

Inland ports of entry.--The Committee directs PHMSA to work with local governments at international inland ports of entry with a high volume of hazardous material border crossings to reduce the risk associated with crossing and storing hazardous material and to enhance the capacity of local officials in dealing with threats of hazardous material incident.

PIPELINE SAFETY

(PIPELINE SAFETY FUND)

(OIL SPILL LIABILITY TRUST FUND)

(TABLE OMITTED)

PHMSA oversees the safety, security, and environmental protection of pipelines through analysis of data, damage prevention, education and training, development and enforcement of regulations and policies, research and development, grants for states pipeline safety programs, and emergency planning and response to accidents. The pipeline safety program is responsible for a national regulatory program to protect the public against the risks to life and property in the transportation of natural gas, petroleum, and other hazardous materials by pipeline.

COMMITTEE RECOMMENDATION

The Committee recommends $162,000,000 to continue pipeline safety operations, research and development, and state grants- in-aid, which is $5,712,000 above the fiscal year 2017 enacted level and $7,656,000 above the budget request. Of the total, $23,000,000 is from the oil spill liability trust fund, and $131,000,000 is from the pipeline safety fund.

The Committee recommendation provides $13,000,000 for research and development, $53,000,000 for state pipeline safety grants, $1,058,000 for state one-call grants, and $1,500,000 for state damage prevention grants. PHMSA shall deliver a report to the House and Senate Committees on Appropriations within 120 days of enactment of this Act that details staffing and hiring plans for fiscal year 2018 as well as actual turnover and hiring in fiscal year 2017.

EMERGENCY PREPAREDNESS GRANTS

(EMERGENCY PREPAREDNESS FUND)

Appropriation, fiscal year 2017....................... ($28,318,000)

Budget request, fiscal year 2018...................... (28,318,000)

Recommended in the bill............................... (28,318,000)

Bill compared to:

Appropriation, fiscal year 2017................... ( - - -)

Budget request, fiscal year 2018.................. ( - - -)

The Hazardous Materials Transportation Uniform Safety Act of 1990 (Public Law 101-616) requires PHMSA to: (1) develop and implement a reimbursable emergency preparedness grant program; (2) monitor public sector emergency response training and planning and provide technical assistance to states, political subdivisions, and Indian tribes; and (3) develop and update periodically a mandatory training curriculum for emergency responders.

COMMITTEE RECOMMENDATION

The Committee recommends $28,318,000 for the emergency preparedness grants program, which is the same as the fiscal year 2017 enacted level and the budget request.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

Appropriation, fiscal year 2017....................... $90,152,000

Budget request, fiscal year 2018...................... 87,306,000

Recommended in the bill............................... 92,152,000

Bill compared with:

Appropriation, fiscal year 2017................... +2,000,000

Budget request, fiscal year 2018.................. +4,846,000

The Office of Inspector General was established in 1978 to provide an objective and independent organization that would be more effective in: (1) preventing and detecting fraud, waste, and abuse in departmental programs and operations; and (2) providing a means of keeping the Secretary of Transportation and the Congress fully and currently informed of problems and deficiencies in the administration of such programs and operations. According to the authorizing legislation, the Inspector General (IG) is to report dually to the Secretary of Transportation and to the Congress.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $92,152,000 for the Office of Inspector General, which is $2,000,000 greater than the fiscal year 2017 enacted level and $4,846,000 greater than the budget request. The Committee continues to highly value IG's oversight of departmental programs and activities.

Unfair business practices.--The bill maintains language first enacted in fiscal year 2000, which authorizes the OIG to investigate allegations of fraud and unfair or deceptive practices and unfair methods of competition by air carriers and ticket agents.

Audit reports.--The Committee requests the OIG to continue forwarding copies of all audit reports to the Committee immediately after they are issued, and to continue to make the Committee aware immediately of any review that recommends cancellation or modifications to any major acquisition project or grant, or which recommends significant budgetary savings. The OIG is also directed to withhold from public distribution for a period of 15 days any final audit or investigative report that was requested by the House or Senate Committees on Appropriations.

Audit of Metropolitan Transit Authority of Harris County, Texas.--The Committee directs the IG to provide progress updates on the status of the audit into the financial solvency of the Metropolitan Transit Authority of Harris County, Texas (Houston METRO).

GENERAL PROVISIONS--DEPARTMENT OF TRANSPORTATION

Section 180 provides authorization for DOT to maintain and operate aircraft, hire passenger motor vehicles and aircraft, purchase liability insurance, buy uniforms, or allowances therefor.

Section 181 limits appropriations for services authorized by 5 U.S.C. 3109 to the rate permitted for an Executive Level IV.

Section 182 prohibits recipients of funds in this Act from disseminating personal information obtained by state DMVs in connection to motor vehicle records with an exception.

Section 183 stipulates that revenue collected by FHWA and FRA from States, counties, municipalities, other public authorities, and private sources for training be transferred into specific accounts within the agency with an exception.

Section 184 prohibits DOT from using funds for grants of $500,000 or more from any mode at DOT, unless DOT gives a 3-day advance notice to the House and Senate Committees on Appropriations. Also requires notice of any "quick release" of funds from FHWA's emergency relief program, and prohibits notifications from involving funds not available for obligation. Requires DOT to provide a comprehensive list of all loans, loan guarantees, lines of credit, and discretionary grants that will be announced with a 3-day advance notice to the House and Senate Committees on Appropriations.

Section 185 allows funds received from rebates, refunds, and similar sources to be credited to appropriations of DOT.

Section 186 allows amounts from improper payments to a third party contractor that are lawfully recovered by DOT to be made available to cover expenses incurred in recovery of such payments.

Section 187 requires that reprogramming actions have to be approved or denied by the House and Senate Committees on Appropriations, and reprogramming notifications shall be transmitted solely to the Appropriations Committees.

Section 188 allows funds appropriated to modal administrations to be obligated for the Office of the Secretary for costs related to assessments only when such funds provide a direct benefit to that modal administration.

Section 189 authorizes the Secretary to carry out a program that establishes uniform standards for developing and supporting agency transit pass and transit benefits, including distribution of transit benefits.

Section 190 prohibits the use of funds to implement any geographic, economic, or other hiring preference not otherwise authorized by law, unless certain requirements are met related to availability of local labor, displacement of existing employees, and delays in transportation plans.

TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Management and Administration

Management and Administration accounts provide operating support to the Department of Housing and Urban Development. Funding supports the salaries and expenses of nearly all HUD employees, as well as certain non-personnel expenses critical to carrying out HUD's mission, including funding for shared service agreements. The Committee supports the Department's efforts to transform the way it does business and encourages the Department to continue efforts to streamline operations while making targeted technology and human capital investments.

Budget presentation.--The Committee directs HUD to continue to clearly identify and explain within its budget request the movement, reclassification, or transfer of budgetary resources from one account, program, project, or activity to another account, program, project, or activity in order to facilitate year-over-year comparisons. Any programs, projects, or activities that are newly requested or transferred from accounts outside Management and Administration shall also be clearly identified and clearly distinguished from adjustments to baseline spending.

New initiatives.--The Committee reiterates that the Department must limit the reprogramming of funds between the programs, projects, and activities within each account and that no changes may be made to any program, project, or activity without prior approval of the House and Senate Committees on Appropriations. Unless otherwise identified in the bill or report, the most detailed allocation of budgetary resources presented in the budget justifications is approved with any deviation from such approved allocation subject to reprogramming requirements. All carryover funds, including recaptures and deobligations, are also subject to reprogramming requirements.

HUD management challenges.--Annually since 1991, the Office of Inspector General has reported on the lack of an integrated financial management system at HUD. The Department has been working to replace its core financial management system since fiscal year 2003, and has yet to deliver a successful replacement. Many of the financial challenges and risks are exacerbated by the Department's outdated information technology systems, and yet the Department has shown weaknesses in planning, managing, executing, and appropriately funding its projects, making it difficult to successfully update outdated systems. As the Inspector General noted in his most recent testimony before the Committee, as HUD addresses its future financial management objectives, it must ensure the project is properly planned and managed, its objectives are sequentially met during implementation, and additional funding is spent appropriately. The Committee expects regular updates on its efforts to correct these financial management deficiencies and improve information technology governance.

EXECUTIVE OFFICES

Appropriation, fiscal year 2017....................... $14,000,000

Budget request, fiscal year 2018...................... 14,708,000

Recommended in the bill............................... 14,708,000

Bill compared with:

Appropriation, fiscal year 2017................... +708,000

Budget request, fiscal year 2018.................. - - -

The Executive Offices account funds the salaries and expenses of the Office of the Secretary, the Office of the Deputy Secretary, the Office of Adjudicatory Services, the Office of Congressional and Intergovernmental Relations, the Office of Public Affairs, the Office of Small and Disadvantaged Business Utilization, and the Center for Faith-Based and Neighborhood Partnerships.

The Office of the Secretary provides program and policy guidance, and operations management and oversight in administering all programs, functions, and authorities of the Department.

The Office of the Deputy Secretary provides operations management and helps the Department achieve its strategic goals by providing management support to program offices under the direction of the Office of the Secretary.

The Office of Adjudicatory Services, formerly known as the Office of Hearings and Appeals, conducts hearings and makes determinations regarding formal complaints or adverse actions initiated by HUD based upon alleged violations of federal statutes and implementing regulations.

The Office of the Assistant Secretary for Congressional and Intergovernmental Relations is responsible for coordinating Congressional and intergovernmental relations activities involving program offices to ensure the effective and accurate presentation of the Department's views.

The Office of Public Affairs educates the American people about the Department's mission through media outreach and other communication tools, such as press releases, press conferences, the Internet, media interviews, new media, and community outreach.

The Office of Small and Disadvantaged Business Utilization provides small business program design and outreach to the business community and serves as the central referral point for small business regulatory compliance information.

The Center for Faith-based and Neighborhood Partnerships conducts outreach, recommends changes to HUD policies and programs that present barriers to grassroots organizations, and initiates special projects, such as grant writing training.

COMMITTEE RECOMMENDATION

The Committee recommends $14,708,000, which is $708,000 above the fiscal year 2017 enacted level and equal to the budget request.

The bill also provides that no more than $25,000 provided under the Office of the Secretary shall be available for official reception and representation expenses as the Secretary may determine.

Notice of HUD assistance.--HUD provides many different types of financial assistance to accomplish the missions of housing and development. Grants, loans, mortgages, contracts, and cooperative agreements are provided in support of many different types of stakeholders, including individuals, public housing authorities, not-for-profit organizations, states and governors, mayors and cities, and landlords. As a consequence, there is no single HUD point of contact in a given community, or one single grant recipient, and it is difficult to comprehensively track all of HUD's investments, projects, and programs across a single community. The Committee directs the Secretary, either though the various program offices or through technical assistance initiatives, to notify local officials where HUD assistance is, or will be, used for new construction, hazard remediation, or substantial rehabilitation of multifamily units, public buildings, or other projects which involve the construction of or rehabilitation of properties other than single family homes.

ADMINISTRATIVE SUPPORT OFFICES

(INCLUDING TRANSFER OF FUNDS)

Appropriation, fiscal year 2017....................... $517,647,000

Budget request, fiscal year 2018...................... 517,803,000

Recommended in the bill............................... 518,303,000

Bill compared with:

Appropriation, fiscal year 2017................... +656,000

Budget request, fiscal year 2018.................. +500,000

The Administrative Support Offices (ASO) account funds the salaries and expenses of the Office of Administration, the Office of the Chief Human Capital Officer, the Office of General Counsel, the Office of the Chief Financial Officer, the Office of the Chief Procurement Officer, the Office of Departmental Equal Employment Opportunity, the Office of Field Policy and Management, the Office of Strategic Planning and Management, the Office of the Chief Information Officer, and the Office of the Chief Operations Officer.

The Committee commends HUD's recognition of the need to institutionalize and stabilize operations within the Department, and establishes the creation of the Office of the Chief Operations Officer (OCOO). The Chief Operations Officer was formerly part of Executive Offices, but is moved to ASO to oversee the day-to-day operations of the Department, focusing on oversight and transformation of HUD's human capital, procurement, administrative, and information technology processes. The OCOO oversees a team that includes the Chief Human Capital Officer (CHCO), the Chief Procurement Officer (CPO), the Chief Information Officer (CIO), the Chief Administrative Officer (CAO), and the Director of the Office of Strategic Planning and Management (OSPM).

The Office of the Chief Financial Officer (CFO) provides leadership in instituting financial integrity, fiscal responsibility, and accountability. The CFO is responsible for all aspects of financial management, accounting, and budgetary matters; ensuring the Department establishes and meets financial management goals and objectives; ensuring the Department is in compliance with financial management legislation and directives; analyzing budgetary implications of policy and legislative proposals; and providing technical oversight with respect to all budget activities throughout the Department.

The General Counsel, as the chief legal officer and legal voice of the Department, is the legal adviser to the Secretary and other principal staff of the Department. It is the responsibility of the Office of the General Counsel (OGC) to provide legal opinions, advice, and services with respect to all programs and activities, and to provide counsel and assistance in the development of the Department's programs and policies. Additionally, OGC conducts high-dollar value insured loan closings for multifamily housing, nursing homes, hospitals, and elderly and disabled housing programs.

The Office of Administration provides general operational support services to all offices and divisions throughout HUD. These services include HUD's non-information technology infrastructure in the following areas: nationwide management and operation of buildings, providing administrative services to all field offices, Freedom of Information Act (FOIA) processing, records management, overseeing HUD broadcasting, and coordinating responses to disasters and emergencies.

The Office of the Chief Human Capital Officer provides human resource services to all offices and divisions throughout HUD, and assures accountability with the Office of Personnel Management, Office of Management and Budget, other Federal agencies, Congress, and the public. These services include HUD's non-information technology infrastructure in the following areas: strategic human capital management, enterprise level training and learning, recruitment and staffing, workforce planning, retention, engagement, succession planning, and Departmental performance management.

The Office of Field Policy and Management (FPM) serves as the principal advisor providing oversight and communicating Secretarial priorities and policies to field office staff and HUD clients. The Regional and Field Office Directors act as the operational managers in each of the field offices and manage and coordinate cross-program delivery in the field.

The Office of the Chief Procurement Officer (OCPO) provides acquisition support for the creating of strong, sustainable, inclusive communities and quality homes for all. OCPO is responsible for managing the agency acquisition workforce and conducting procurement activities.

The Office of Departmental Equal Employment Opportunity (ODEEO) is responsible for ensuring the enforcement of Federal laws relating to the elimination of all forms of discrimination in the Department's employment practices and to ensure equal employment opportunity (EEO). The Office is comprised of two programmatic areas in carrying out the administration, management, and enforcement of its EEO, civil rights, and affirmative employment functions: 1) Equal Employment Opportunity Division, which includes the Alternative Dispute Resolution Program; and 2) the Affirmative Employment Division.

The Office of Strategic Planning and Management drives organizational, programmatic, and operational change across the Department to maximize efficiency and performance. The office facilitates HUD's strategic planning process by identifying the Department's priorities and transformational change initiatives, managing risk, creating and managing work plans for targeted transformation projects, and developing key program performance measures and targets for monitoring.

The Office of the Chief Information Officer is led by the Chief Information Officer (CIO), who reports to the Office of the Secretary/Deputy Secretary. HUD's CIO advises senior managers on the strategic use of information technology to support core business processes and to achieve mission critical goals. OCIO is responsible for providing modern information technology that is secure, accessible, and cost effective while ensuring compliance with applicable regulatory requirements.

COMMITTEE RECOMMENDATION

The Committee recommends $518,303,000 for this account, which is $656,000 above the fiscal year 2017 enacted level and $500,000 above the budget request.

Funding specified for each office is as follows:

Office.......................... Amount

Office of the Chief Operations Officer.................. $10,762,000

Office of the Chief Financial Officer................... 50,340,000

Office of the General Counsel........................... 92,006,000

Office of Administration................................ 205,873,000

Office of the Chief Human Capital Officer............... 38,245,000

Office of Field Policy and Management................... 49,588,000

Office of the Chief Procurement Officer................. 19,065,000

Office of the Departmental Equal Employment Opportunity. 3,570,000

Office of Strategic Planning and Management............. 4,975,000

Office of the Chief Information Officer................. 43,879,000

Program Office Salaries and Expenses

PUBLIC AND INDIAN HOUSING

Appropriation, fiscal year 2017....................... $216,000,000

Budget request, fiscal year 2018...................... 216,633,000

Recommended in the bill............................... 216,633,000

Bill compared with:

Appropriation, fiscal year 2017................... +633,000

Budget request, fiscal year 2018.................. - - -

The Office of Public and Indian Housing (PIH) oversees the administration of HUD's Public Housing, Housing Choice Voucher, and Native American Programs. PIH is responsible for administering and managing programs authorized and funded by Congress under the basic provisions of the U.S. Housing Act of 1937.

COMMITTEE RECOMMENDATION

The Committee recommends $216,633,000 for this account, which is $633,000 above the level enacted in fiscal year 2017, and equal to the fiscal year 2018 budget request. The Committee directs that at least the same level of budgetary resources as in fiscal year 2017 be allocated to ensure the successful and streamlined completion of Rental Assistance Demonstration (RAD) transactions.

Continues with Part 5 of 8

Myron Struck, editor, Targeted News Service, Springfield, Va., 703/304-1897; [email protected]; http://www.targetednews.com