[House Report 115-237] [From the U.S. Government Publishing Office]115th Congress } { Report HOUSE OF REPRESENTATIVES 1st Session } { 115-237 ====================================================================== DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS BILL, 2018 _______ July 21, 2017.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed _______ Mr. Diaz-Balart, from the Committee on Appropriations, submitted the following R E P O R T together with MINORITY VIEWS [To accompany H.R. 3353] The Committee on Appropriations submits the following report 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. INDEX TO BILL AND REPORT _______________________________________________________________________ Page number Bill Report Title I--Department of Transportation...................... 2 4 Title II--Department of Housing and Urban Development...... 71 69 Title III--Related Agencies................................ 151 103 Title IV--General Provisions............................... 155 107 Reporting requirements..................................... -- 108 Minority views............................................. -- 190 PROGRAM, PROJECT, AND ACTIVITY During fiscal year 2018, for the purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177), as amended, with respect to appropriations contained in the accompanying bill, the terms ``program, project, and activity'' (PPA) shall mean any item for which a dollar amount is contained in appropriations acts (including joint resolutions providing continuing appropriations) and accompanying reports of the House and Senate Committees on Appropriations, or accompanying conference reports and joint explanatory statements of the committee of conference. This definition shall apply to all programs for which new budget (obligational) authority is provided, as well as to discretionary grants and discretionary grant allocations made through either bill or report language. In addition, the percentage reductions made pursuant to a sequestration order to funds appropriated for facilities and equipment, Federal Aviation Administration, shall be applied equally to each budget item that is listed under said account in the budget justifications submitted to the House and Senate Committees on Appropriations as modified by subsequent appropriations acts and accompanying committee reports, conference reports, or joint explanatory statements of the committee of conference. The Committee expects that the operating plans will address each number listed in the reports, and warns that efforts to operate programs at levels contrary to the levels recommended and directed in these reports would not be advised. OPERATING PLANS AND REPROGRAMMING GUIDELINES The Committee includes a provision (Sec. 405) establishing the authority by which funding available to the agencies funded by this Act may be reprogrammed for other purposes. The provision specifically requires the advance approval of the House and Senate Committees on Appropriations of any proposal to reprogram funds that: creates a new program; eliminates a program, project, or activity (PPA); increases funds or personnel for any PPA for which funds have been denied or restricted by the Congress; redirects funds that were directed in such reports for a specific activity to a different purpose; augments an existing PPA in excess of $5,000,000 or 10 percent, whichever is less; reduces an existing PPA by $5,000,000 or 10 percent, whichever is less; or creates, reorganizes, or restructures offices different from the congressional budget justifications or the table at the end of the Committee report, whichever is more detailed. The Committee retains the requirement that each agency submit an operating plan to the House and Senate Committees on Appropriations not later than 60 days after enactment of this Act to establish the baseline for application of reprogramming and transfer authorities provided in this Act. Specifically, each agency must provide a table for each appropriation with columns displaying the budget request; adjustments made by Congress; adjustments for rescissions, if appropriate; and the fiscal year enacted level. The table shall delineate the appropriation both by object class and by PPA. The report also must identify items of special Congressional interest. In certain instances, the Committee may direct the agency to submit a revised operating plan for approval or may direct changes to the operating plan if the plan is not consistent with the directives of the conference report and statement of the managers. The Committee expects the agencies and bureaus to submit reprogramming requests in a timely manner and to provide a thorough explanation of the proposed reallocations, including a detailed justification of increases and reductions and the specific impact of proposed changes on the budget request for the following fiscal year. Any reprogramming request shall include any out-year budgetary impacts and a separate accounting of program or mission impacts on estimated carryover funds. Reprogramming procedures shall apply to funds provided in this bill, unobligated balances from previous appropriations Acts that are available for obligation or expenditure in fiscal year 2018, and non-appropriated resources such as fee collections that are used to meet program requirements in fiscal year 2018. The Committee expects each agency to manage its programs and activities within the amounts appropriated by Congress. The Committee reminds agencies that reprogramming requests should be submitted only in the case of an unforeseeable emergency or a situation that could not have been anticipated when formulating the budget request for the current fiscal year. Except in emergency situations, reprogramming requests should be submitted no later than June 30, 2018. Further, the Committee notes that when a Department or agency submits a reprogramming or transfer request to the Committees on Appropriations and does not receive identical responses from the House and Senate, it is the responsibility of the Department to reconcile the House and Senate differences before proceeding and, if reconciliation is not possible, to consider the request to reprogram funds unapproved. The Committee would also like to clarify that this section applies to working capital funds of both HUD and DOT and that no funds may be obligated from working capital fund accounts to augment programs, projects or activities for which appropriations have been specifically rejected by the Congress, or to increase funds or personnel for any PPA above the amounts appropriated by this Act. CONGRESSIONAL BUDGET JUSTIFICATIONS Budget justifications are the primary tool used by the House and Senate Committees on Appropriations to evaluate the resource requirements and fiscal needs of agencies. The Committee is aware that the format and presentation of budget materials is largely left to the agency within presentation objectives set forth by the Office of Management and Budget (OMB). In fact, OMB Circular A-11, part 1 specifically instructs agencies to consult with congressional committees beforehand. The Committee expects that all agencies funded under this Act will heed this directive. The Committee expects all of the budget justifications to provide the data needed to make appropriate and meaningful funding decisions. The Committee continues the direction that justifications submitted with the fiscal year 2019 budget request by agencies funded under this Act contain the customary level of detailed data and explanatory statements to support the appropriations requests at the level of detail contained in the funding table included at the end of this report. Among other items, agencies shall provide a detailed discussion of proposed new initiatives, proposed changes in the agency's financial plan from prior year enactment, detailed data on all programs, and comprehensive information on any office or agency restructurings. At a minimum, each agency must also provide adequate justification for funding and staffing changes for each individual office and materials that compare programs, projects, and activities that are proposed for fiscal year 2019 to the fiscal year 2018 enacted levels. The Committee is aware that the analytical materials required for review by the Committee are unique to each agency in this Act. Therefore, the Committee expects that each agency will coordinate with the House and Senate Committees on Appropriations in advance on its planned presentation for its budget justification materials in support of the fiscal year 2019 budget request. OTHER MATTERS Performance measures.--The Committee directs each of the agencies funded by this Act to comply with title 31 of the United States Code including the development of their organizational priority goals and outcomes such as performance outcome measures, output measures, efficiency measures, and customer service measures. Regional councils.--The Committee encourages federal agencies to consider including regional councils and councils of government as eligible entities in competitions for federal funding when local governments or non-profit agencies are eligible. Federally funded research.--The Committee is encouraged by actions of agencies under the jurisdiction of this bill to increase access to federally funded research conducted by those agencies. The Committee urges these agencies to continue their efforts toward increased access, and the Committee requests updates on progress made to be included in fiscal year 2019 budget requests. Responses to Congressional Inquiries.--It is a long- standing tradition and Constitutional responsibility of the Executive Branch to be responsive to the Congress. Therefore, the Committee directs the heads of all entities in this subcommittee's jurisdiction to respond in a consistent and timely manner to inquiries from Members regardless of political party (or majority or minority status). Furthermore, not more than 30 days after this report is filed and then on a quarterly basis, the Secretary shall submit to the Committee a Congressional correspondence tracker showing, only by party, the date the correspondence was received and the date a response was sent. TITLE I--DEPARTMENT OF TRANSPORTATION Office of the Secretary SALARIES AND EXPENSES Appropriation, fiscal year 2017....................... $114,000,000 Budget request, fiscal year 2018...................... 111,899,000 Recommended in the bill............................... 108,899,000 Bill compared with: Appropriation, fiscal year 2017................... -5,101,000 Budget request, fiscal year 2018.................. -3,000,000 Immediate Office of the Secretary.--The Immediate Office of the Secretary has primary responsibility to provide overall planning, direction, and control of departmental affairs. Immediate Office of the Deputy Secretary.--The Immediate Office of the Deputy Secretary has primary responsibility to assist the Secretary in the overall planning, direction, and control of departmental affairs. The Deputy Secretary serves as the chief operating officer of the Department of Transportation. Executive Secretariat.--The Executive Secretariat assists the Secretary and Deputy Secretary in carrying out their responsibilities by controlling and coordinating internal and external documents. Office of the Chief Information Officer.--The Office of the Chief Information Officer serves as the principal advisor to the Secretary on information resources and information systems management. Office of the Assistant Secretary for Governmental Affairs.--The Office of the Assistant Secretary for Governmental Affairs is responsible for coordinating all Congressional, intergovernmental, and consumer activities of the Department. Office of the General Counsel.--The Office of the General Counsel provides legal services to the Office of the Secretary and coordinates and reviews the legal work of the chief counsels' offices of the operating administrations. Office of the Assistant Secretary for Budget and Programs.--The Office of the Assistant Secretary for Budget and Programs is responsible for developing, reviewing, and presenting budget resource requirements for the Department to the Secretary, Congress, and the Office of Management and Budget. Office of the Assistant Secretary for Administration.--The Office of the Assistant Secretary for Administration serves as the principal advisor to the Secretary on Department-wide administrative matters and the responsibilities include leadership in acquisition reform and human capital. Office of Public Affairs.--The Office of Public Affairs is responsible for the Department's press releases, articles, briefing materials, publications, and audio-visual materials. Office of Intelligence, Security, and Emergency Response.-- The Office of Intelligence, Security, and Emergency Response is responsible for intelligence, security policy, preparedness, training and exercises, national security, and operations. Office of the Under Secretary of Transportation for Policy.--The Office of the Under Secretary of Transportation for Policy serves as the Department's chief policy officer, and is responsible for the coordination and development of departmental policy and legislative initiatives; international standards development and harmonization; aviation and other transportation-related trade negotiations; the performance of policy and economic analysis; and the execution of the Essential Air Service program. COMMITTEE RECOMMENDATION The bill provides $108,899,000 for the salaries and expenses of the offices comprising the Office of the Secretary of Transportation (OST). The Committee's recommendation is $5,101,000 below the 2017 enacted level and $3,000,000 the request. The Committee's recommendation includes individual funding for each office as has been done in prior years. However, the bill increases the amount allowed for transfers between offices from five percent to ten percent. Operating plan.--The Committee directs the Department to submit an operating plan for fiscal year 2018 signed by the Secretary for review by the Committees on Appropriations of the House and Senate within 60 days of enactment of this Act. The operating plan should include funding levels for the various offices, programs, and initiatives detailed down to the object class or program element covered in the budget justification and supporting documents, documents referenced in the House and Senate reports, and the statement of the managers (i.e. not simply the activities called out in bill language). Should the Department create, alter, discontinue, or otherwise change any program as described in the Department's budget justification, those changes must be a part of the Department's operating plan. Finally, the Department shall submit with the operating plan a summary of the DOT reporting requirements contained in the Act, the House and Senate reports, and the Statement of the Managers. The Committee requests a number of reports to gather information and conduct oversight. The summary should include Inspector General and Government Accountability Office reports as well. Bill language.--The bill continues language that permits up to $2,500,000 of fees to be credited to the Office of the Secretary for salaries and expenses, and limits reception and representation expenses to $60,000. Open skies.--In fiscal year 2016, the Committee provided the Department $130,000 in requested funds to conduct studies and regulatory analysis to ensure U.S. airlines and consumers realize the full benefits of open skies agreements. Additionally, the Department began an interagency process to solicit comment and explore whether foreign government subsidies received by some international carriers were resulting in market distortions. While the previous Administration initiated informal discussions with some foreign governments to address these subsidies, no conclusion was reached prior to the end of the Administration. The Committee strongly urges the Department to continue discussions to ensure that U.S. airline carriers and their workers have a fair and equal opportunity to compete in accordance with open skies agreements. The Committee directs the Department to provide regular updates to the Committee. Natural gas vehicle safety.--The Secretary is encouraged to assess new developments and advances with respect to natural gas vehicles, and is directed to oversee implementation of new safety regulations for liquefied natural gas fuel tanks and fuel systems on commercial motor vehicles, to revise and update regulations for compressed natural gas (CNG) cylinders, including inspection requirements for such cylinders, to issue guidelines on the ability of bus manufacturers to deploy transit buses that have roof-top mounted CNG cylinders, and to clarify through guidance that rules restricting alternative fuel vehicle access to bridges and tunnels should not be any more restrictive than those addressing gasoline and diesel fueled vehicles. RESEARCH AND TECHNOLOGY Appropriation, fiscal year 2017....................... $13,000,000 Budget request, fiscal year 2018...................... 8,465,109 Recommended in the bill............................... 8,465,109 Bill compared with: Appropriation, fiscal year 2017................... -4,534,891 Budget request, fiscal year 2018.................. - - - The Office of the Assistant Secretary for Research and Technology coordinates, facilitates, and reviews the Department's research and development programs and activities; coordinating and developing positioning, navigation and timing (PNT) technology; maintaining PNT policy, coordination and spectrum management; managing the Nationwide Differential Global Positioning System; and overseeing and providing direction to the Bureau of Transportation Statistics, the Intelligent Transportation Systems Joint Program Office, the University Transportation Centers program, the Volpe National Transportation Systems Center and the Transportation Safety Institute. COMMITTEE RECOMMENDATION The Committee recommendation provides $8,465,109 for research and technology activities, the same as the budget request and $4,534,891 below the fiscal year 2017 enacted level. NATIONAL SURFACE TRANSPORTATION AND INNOVATIVE FINANCE BUREAU Appropriation, fiscal year 2017....................... $3,000,000 Budget request, fiscal year 2018...................... 3,000,000 Recommended in the bill............................... 1,000,000 Bill compared with: Appropriation, fiscal year 2017................... -2,000,000 Budget request, fiscal year 2018.................. -2,000,000 The National Surface Transportation and Innovative Finance Bureau administers and coordinates the Department of Transportation's existing transportation finance programs. COMMITTEE RECOMMENDATION The Committee recommendation includes $1,000,000 for the National Surface Transportation and Innovative Finance Bureau (the ``Bureau''), $2,000,000 below the request and the 2017 enacted level. An additional $3,000,000 is made available by transfer from the Maritime Guaranteed Loan (Title XI) Program Account for a total resource level of $4,000,000, $1,000,000 above the request and the 2017 enacted level. The Committee expects the Bureau to administer the Title XI program in fiscal year 2018. FINANCIAL MANAGEMENT CAPITAL Appropriation, fiscal year 2017....................... $4,000,000 Budget request, fiscal year 2018...................... 3,000,000 Recommended in the bill............................... - - - Bill compared with: Appropriation, fiscal year 2017................... -4,000,000 Budget request, fiscal year 2018.................. -3,000,000 The Financial Management Capital program supports a multi- year project to upgrade DOT financial systems, processes and reporting capabilities. COMMITTEE RECOMMENDATION The Committee does not recommend any funding for the Financial Management Capital program which is $3,000,000 below the budget request and $4,000,000 below the 2017 enacted level. Amounts provided in fiscal year 2017 were intended to complete the Department's financial management upgrade and therefore no additional resources are recommended. CYBER SECURITY INITIATIVE Appropriation, fiscal year 2017....................... $15,000,000 Budget request, fiscal year 2018...................... 10,000,000 Recommended in the bill............................... 15,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +5,000,000 The Cyber Security Initiative is an effort to close performance gaps in the Department's cybersecurity. The initiative includes support for essential program enhancements, infrastructure improvements and contractual resources to enhance the security of the Department's computer network and reduce the risk of security breaches. COMMITTEE RECOMMENDATION The Committee recommendation provides $15,000,000 to support the Secretary's cyber security initiative, which is the same as the fiscal year 2017 enacted level and $5,000,000 above the budget request. Digital workspace technologies.--The Committee recognizes that the use of digital workspace technologies can increase user productivity, enhance cybersecurity, and allow workforce flexibility. The Committee encourages the Department to explore a broad ecosystem support of multi-factor authentication solutions to strengthen the Department's cybersecurity posture. This should include strategies and programs that reduce the total lifecycle costs of traditional legacy workspace infrastructure. OFFICE OF CIVIL RIGHTS Appropriation, fiscal year 2017....................... $9,751,000 Budget request, fiscal year 2018...................... 9,500,000 Recommended in the bill............................... 9,500,000 Bill compared with: Appropriation, fiscal year 2017................... -251,000 Budget request, fiscal year 2018.................. - - - The Office of Civil Rights is responsible for advising the Secretary on civil rights and equal opportunity issues, and ensuring the full implementation of the civil rights laws and departmental civil rights policies in all official actions and programs. This office is responsible for enforcing laws and regulations that prohibit discrimination in federally operated and federally assisted transportation programs and enabling access to transportation providers. The Office of Civil Rights also handles all civil rights cases affecting Department of Transportation employees. COMMITTEE RECOMMENDATION The Committee recommends $9,500,000 for the Office of Civil Rights, the same as the budget request and $251,000 below the fiscal year 2017 enacted level. TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT Appropriation, fiscal year 2017....................... $12,000,000 Budget request, fiscal year 2018...................... 8,500,000 Recommended in the bill............................... 8,500,000 Bill compared with: Appropriation, fiscal year 2017................... -3,500,000 Budget request, fiscal year 2018.................. - - - This appropriation finances research activities and studies related to the planning, analysis, and information development used in the formulation of national transportation policies and plans. It also finances the staff necessary to conduct these efforts. The overall program is carried out primarily through contracts with other federal agencies, educational institutions, nonprofit research organizations, and private firms. COMMITTEE RECOMMENDATION The Committee recommends an appropriation of $8,500,000 for transportation planning, research, and development, which is $3,500,000 below the fiscal year 2017 enacted level and the same as the budget request. Of the funds provided, the recommendation includes $3,000,000 to support the permitting dashboard. Infrastructure mapping with geospatial tools.--DOT possesses and collects much information on airports, airways, roads, bridges and transit infrastructure, but this rich data source is neither location-based nor integrated across asset types. As the nation contemplates making a significant investment in improving infrastructure, the Committee encourages DOT to establish a location-based, comprehensive, integrated enterprise geographic information system that would allow the selection, management, measurement, cross-asset analysis and impact of infrastructure investments using competitively acquired commercial geospatial tools. This would optimize the Department's ability to properly analyze the condition of assets, project outcomes of investments, choose investments that would be most impactful, accurately report where investments were implemented, monitor infrastructure projects, measure the results of the investments, and provide data for public oversight in a modern, completely transparent environment. WORKING CAPITAL FUND Appropriation, fiscal year 2017....................... $190,389,000 Budget request, fiscal year 2018...................... - - - Recommended in the bill............................... 202,245,000 Bill compared with: Appropriation, fiscal year 2017................... +11,856,000 Budget request, fiscal year 2018.................. +202,245,000 The working capital fund was created to provide common administrative services to the operating administrations and outside entities that contract for the fund's services. The working capital fund operates on a fee-for-service basis and receives no direct appropriations; it is fully self-sustaining and must achieve full cost recovery. COMMITTEE RECOMMENDATION The Committee recommends a limitation of $202,245,000 on the Working Capital Fund (WCF), an increase of $11,856,000 over the limit set in 2017. The Administration did not propose a WCF legislative limitation. The Committee continues to stipulate that the limitation is only for services provided to the Department of Transportation, not other entities. Further, the Committee directs that, as much as possible, services shall be provided on a competitive basis. MINORITY BUSINESS RESOURCE CENTER PROGRAM ------------------------------------------------------------------------ Limitation on Appropriation guaranteed loans ------------------------------------------------------------------------ Appropriation, fiscal year 2017....... $941,000 ($18,367,000) Budget request, fiscal year 2018...... 500,301 (- - -) Recommended in the bill............... 500,301 (- - -) Bill compared with: Appropriation, fiscal year 2017... -440,699 (-18,367,000) Budget request, fiscal year 2018.. - - - (- - -) ------------------------------------------------------------------------ Through the Short Term Lending Program, the minority business resource center assists disadvantaged, minority, and women-owned businesses with obtaining short-term working capital for DOT and DOT-funded transportation-related contracts. The program enables qualified businesses to obtain loans at two percentage points above the prime interest rate with DOT guaranteeing up to 75 percent of the loan. COMMITTEE RECOMMENDATION The Committee recommends a total of $500,301 for the Minority Business Resource Center, the same as the budget request and $440,699 less than the 2017 enacted level. The entire amount is for administrative expenses including education outreach activities, monitoring of existing loans, and modification of existing loans. No funding is provided to support new loans and the Committee recommends no additional limitation on guaranteed loans in fiscal year 2018. The request effectively eliminates the Short Term Lending Program. The program has had negligible loan volume in recent years as the Small Business Administration's CAPLine loan program has been streamlined and become the preferred source of funds for this market. SMALL AND DISADVANTAGED BUSINESS UTILIZATION AND OUTREACH Appropriation, fiscal year 2017....................... $4,646,000 Budget request, fiscal year 2018...................... 3,999,093 Recommended in the bill............................... 3,999,093 Bill compared with: Appropriation, fiscal year 2017................... -646,907 Budget request, fiscal year 2018.................. - - - The Office of Small and Disadvantaged Business Utilization has been merged with the minority business outreach program to provide contractual support to small and disadvantaged businesses and provide information dissemination and technical and financial assistance to empower those businesses to compete for contracting opportunities with DOT and DOT-funded contracts or grants for transportation-related projects. COMMITTEE RECOMMENDATION The Committee recommends $3,999,093 for small and disadvantaged business utilization and outreach, which is the same as the budget request and $646,907 below the 2017 enacted level. The Committee encourages the Department to partner with Hispanic Serving Institutions and Historically Black Colleges and Universities for research and information dissemination with regards to minority owned businesses. PAYMENTS TO AIR CARRIERS (AIRPORT AND AIRWAY TRUST FUND) Appropriation, fiscal year 2017....................... $150,000,000 Budget request, fiscal year 2018...................... - - - Recommended in the bill............................... 150,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +150,000,000 The Essential Air Service program (EAS) was created by the Airline Deregulation Act of 1978 as a ten-year measure to continue air service to communities that had received air service prior to deregulation. The program currently provides subsidies to air carriers serving small communities that meet certain criteria. The Federal Aviation Administration Reauthorization Act of 1996 authorized the collection of ``overflight fees''. Overflight fees are a type of user fee collected by the Federal Aviation Administration (FAA) from aircraft that neither take off from, nor land in, the United States. The FAA Modernization and Reform Act of 2012 increased the authorized level of overflight fee collection, and increased the amount that the Department can apply to the EAS program. The budget request estimates that this fee will provide $119,129,000 for the EAS program in fiscal year 2018. COMMITTEE RECOMMENDATION For fiscal year 2018, the Committee includes $150,000,000 in discretionary funding for the EAS program, which is the same as the fiscal year 2017 enacted level and $150,000,000 above the budget request. The following table shows the discretionary, mandatory, and total program levels for the EAS program: ---------------------------------------------------------------------------------------------------------------- Appropriation Mandatory Total Program ---------------------------------------------------------------------------------------------------------------- FY 2017 Enacted................................................. $150,000,000 $113,290,000 $263,290,000 FY 2018 Request................................................. - - - 119,129,000 119,129,000 Committee Recommendation........................................ 150,000,000 119,129,000 269,129,000 ---------------------------------------------------------------------------------------------------------------- The Committee remains concerned about the growing costs associated with the EAS program. While limiting the program to current sites and eliminating the requirement that EAS carriers utilize 15-passenger aircraft have helped mitigate some of the cost growth, the Committee believes that the Department should continue to explore reforms to the program that will create greater competition among carriers and control overall costs. The Committee directs the Department to utilize all the overflight fees collected for this program to alleviate the discretionary funding requirement for the program. ADMINISTRATIVE PROVISIONS--OFFICE OF THE SECRETARY OF TRANSPORTATION (INCLUDING TRANSFER OF FUNDS) Section 101 continues the provision prohibiting the Office of the Secretary of Transportation from approving assessments or reimbursable agreements pertaining to funds appropriated to the operating administrations in this Act, unless such assessments or agreements have completed the normal reprogramming process for Congressional notification. Section 102 continues the provision regarding administrative requirements of DOT's Credit Council. Section 103 continues a provision giving the Secretary authority to advance payment to carry out the Federal transit benefits program and to provide transit benefit services to other agencies. Section 104 adds a provision giving the Secretary permanent transfer authorities necessary to carry out the duties of the National Surface Transportation and Innovative Finance Bureau. Section 105 adds a provision transferring the deposit of fees collected through the Railroad Rehabilitation and Improvement Financing Act program from the Federal Railroad Administration to the National Surface Transportation and Innovative Finance Bureau account. Federal Aviation Administration The Federal Aviation Administration (FAA) is responsible for the safety and development of civil aviation and for the evolution of a national system of airports. The Federal government's regulatory role in civil aviation began with the creation of an Aeronautics Branch within the Department of Commerce pursuant to the Air Commerce Act of 1926. This Act instructed the Secretary of Commerce to foster air commerce; designate and establish airways; establish, operate, and maintain aids to navigation; arrange for research and development to improve such aids; issue airworthiness certificates for aircraft and major aircraft components; and investigate civil aviation accidents. In the Civil Aeronautics Act of 1938, these activities were subsumed into a new, independent agency named the Civil Aeronautics Authority. After further administrative reorganizations, Congress streamlined regulatory oversight in 1957 with the creation of two separate agencies, the Federal Aviation Agency and the Civil Aeronautics Board. When the Department of Transportation began its operations on April 1, 1967, the Federal Aviation Agency was renamed the Federal Aviation Administration (FAA), and became one of several modal administrations within the department. The Civil Aeronautics Board was later phased out with enactment of the Airline Deregulation Act of 1978, and ceased to exist at the end of 1984. FAA's mission expanded in 1995 with the transfer of the Office of Commercial Space Transportation from the Office of the Secretary, and contracted in December 2001 with the transfer of civil aviation security activities to the new Transportation Security Administration. NextGen.--The Committee places a high priority on Next Generation of Air Traffic Control (NextGen) programs, and provides a total of $1,080,215,000 for NextGen across the operations, facilities and equipment, and research evaluation and demonstration accounts. This is $50,941,000 above the enacted level and $92,174,000 above the budget request. OPERATIONS (AIRPORT AND AIRWAY TRUST FUND) Appropriation, fiscal year 2017....................... $10,025,852,000 Budget request, fiscal year 2018...................... 9,890,886,000 Recommended in the bill............................... 10,185,482,000 Bill compared with: Appropriation, fiscal year 2017................... +159,630,000 Budget request, fiscal year 2018.................. +294,596,000 This appropriation provides funds for the operation, maintenance, communications, and logistical support of the air traffic control and air navigation systems. It also covers administrative and managerial costs for the FAA's regulatory, international, medical, engineering and development programs as well as policy oversight and overall management functions. The operations appropriation includes the following major activities: (1) operation on a 24-hour daily basis of a national air traffic system; (2) establishment and maintenance of a national system of aids to navigation; (3) establishment and surveillance of civil air regulations to ensure safety in aviation; (4) development of standards, rules and regulations governing the physical fitness of airmen, as well as the administration of an aviation medical research program; (5) administration of the acquisition, and research and development programs; (6) headquarters, administration, and other staff offices; and (7) development, printing, and distribution of aeronautical charts used by the flying public. COMMITTEE RECOMMENDATION The Committee recommends $10,185,482,000 for FAA operations, which is $159,630,000 above the fiscal year 2017 enacted level and $294,596,000 above the budget request. The following table shows a comparison of the fiscal year 2017 enacted level, the budget request, and the Committee recommendation by budget activity: ---------------------------------------------------------------------------------------------------------------- Committee FY 2017 Enacted FY 2018 Request Recommendation ---------------------------------------------------------------------------------------------------------------- Air traffic organization.................................. 7,559,785,000 7,491,938,000 7,691,814,000 Aviation safety........................................... 1,298,482,000 1,257,981,000 1,309,749,000 Commercial space transportation........................... 19,826,000 17,905,000 21,587,000 Finance and management.................................... 771,342,000 758,192,000 777,506,000 NextGen planning.......................................... 60,155,000 59,041,000 59,951,000 Security and Hazardous Materials Safety................... 107,161,000 100,961,000 112,622,000 Staff offices............................................. 209,101,000 204,868,000 212,253,000 ----------------------------------------------------- Total................................................. 10,025,852,000 9,890,886,000 10,185,482,000 ---------------------------------------------------------------------------------------------------------------- Unmanned aircraft systems (UAS) integration.--Within the operations account, the Committee provides $51,000,000 for UAS integration, an increase of $26,000,000 above the budget request. This increase is provided to help FAA accelerate its efforts to safely integrate UAS into the national airspace. Justification of general provisions.--The Committee continues its direction to provide a justification for each general provision proposed in the FAA budget, and therefore expects the fiscal year 2019 budget to include adequate information on each proposed general provision. TRUST FUND SHARE OF FAA BUDGET The bill derives $8,859,900,000 of the total operations appropriation from the Airport and Airway Trust Fund. The balance of the appropriation, $1,325,582,000, will be drawn from the general fund of the Treasury. AIR TRAFFIC ORGANIZATION The bill provides $7,691,814,000 for the air traffic organization, which is $132,029,000 above the 2017 enacted level and $199,876,000 above the budget request. Noise and community outreach.--The Committee is encouraged by the additional measures the FAA is taking to enhance outreach to communities affected by new flightpaths. The Committee recommendation includes an additional $2,000,000 to support the FAA's ongoing efforts to address community noise concerns. Of this total, $250,000 is provided to help the FAA develop better tools for effective engagement with local communities. The remaining $1,750,000 is provided to advance FAA's operational procedure concepts. The Committee encourages the FAA to improve the development of flight procedures in ways that will reduce noise through procedure modification and dispersion to reduce the impact on local communities. The funding provided should be used for methods that can produce measurable results. The FAA should give high priority to evaluating where increased noise levels disrupts homes and businesses, and threatens public health, and should provide all necessary resources to regional offices to work with local communities to meet this objective. Noise health effects research.--The Committee supports research that is being conducted through the FAA's Center of Excellence for Alternative Jet Fuel and Environment, the Aviation Sustainability Center (ASCENT) on the impact of aviation noise on both sleep and cardiovascular health. The Committee directs FAA to continue to prioritize this research, as many communities across the country contend with increased frequency of passing aircraft on a daily basis. In addition, the Committee directs the FAA to continue to evaluate alternative metrics to the current Day Night Level (DNL) 65 standard and other methods to address community airplane noise concerns. The Committee encourages FAA not to rely solely on modeling and simulation, to the greatest extent that is technically feasible. New York, New Jersey, Philadelphia airspace redesign.--The Committee is aware that the FAA's New York, New Jersey, Philadelphia Airspace redesign project has been suspended. If the FAA plans to restart this plan, or any similar plan for these jurisdictions, the FAA is directed to notify the Committees on Appropriations 180 days before taking action. Chicago O'Hare International Airport noise.--The Committee directs the FAA to continue to work expeditiously to identify appropriate short and long term mitigation measures to address local concerns that have been raised as a result of the O'Hare Modernization Program at Chicago O'Hare International Airport. The FAA is expected to provide a progress report on these measures to the Committee within 90 days of enactment of this Act. Contract tower program.--The Committee recommendation includes $162,000,000 for the contract tower program, including the contract tower cost share program. This level is $3,000,000 above the fiscal year 2017 enacted level. The Committee continues to strongly support the FAA contract tower program as a cost-effective and efficient way to provide air traffic control services to smaller airports across the country as validated by numerous audits of the Department of Transportation Office of Inspector General. In an effort to increase air traffic safety benefits throughout the national air transportation system, the Committee has provided dedicated funding over the past few years to add qualified airports annually to the program. The Committee expects FAA to continue to operate the 253 contract towers currently in the program, including the contract tower cost share program, as well as the qualified airports that are eligible to enter the program and any other airport that may qualify during the fiscal year. FAA is directed to provide the Committee with a plan for beginning operations at qualified towers during the fiscal year and a detailed report on the administrative and program management expenses for the program. Flight service stations.--The Committee believes that flight service to the general aviation community should continue to provide a high level of safety and services. Any changes to the system contemplated by FAA should be communicated to the general aviation community, with an opportunity for feedback from stakeholders. The Committee values the ability of pilots to speak to a specialist, and believes that any movement toward the use of pilot self- assistance should be employed gradually. Spectrum efficient national surveillance radar (SENSR).-- The Committee recommends that the FAA, as the lead agency in the emerging joint Spectrum Efficient National Surveillance Radar SENSR initiative, continue supporting the decision to vacate the 1300/1350 MHz band and provide 50 MHz of spectrum for FCC auctions. The Committee also recommends that the FAA ensure that all possible material and nonmaterial solutions are encouraged and fairly evaluated in upcoming activities and not allow any particular agency or group to direct the specific use of technology or spectrum to fulfill the mission of this critical system. Wind turbine farm radar interference.--Not later than 180 days after enactment of this Act, the Committee directs the FAA to issue a request for information (RFI) for technologies, techniques, and strategies related to wind turbine farm radar interference. The Committee further directs the FAA to analyze the information collected as a result of the RFI, and to the extent possible, use this information as part of the development of an approval and certification process. AVIATION SAFETY The Committee provides $1,309,749,000 for aviation safety, which is $11,267,000 above the fiscal year 2017 enacted level and $51,768,000 above the budget request. The Committee continues its direction requiring the Secretary to provide annual reports regarding the use of the funds provided, including, but not limited to, the total full- time equivalent staff years in the offices of aircraft certification and flight standards, total employees, vacancies, and positions under active recruitment. Safety critical staffing.--In September, 2006, the National Academies of Sciences (NAS) released a congressionally-mandated study (Section 506(c) of P.L. 108-176) on the staffing standards required for aviation safety inspectors. Given the increased integration of unmanned aerial vehicles (UAVs) into the national airspace, the FAA safety inspector workforce must be sufficient to manage core safety inspection responsibilities along with emerging inspection challenges related to UAVs and other technologies. Efforts to update the current safety critical staffing model are important, however, the Committee is interested in learning how well the FAA adhered to the staffing standard that was developed in 2006. The Committee directs the GAO to conduct a review of the FAA's implementation of and compliance with the NAS staffing standard for aviation safety inspectors. The study should identify revisions that were made to the 2006 staffing standard and examine the FAA's rationale for making any changes. The Committee directs the GAO to provide a report to the House and Senate Committees on Appropriations within 180 days of enactment of this Act. Maintenance technician staffing and training.--In the Committee's fiscal year 2017 report, the Committee directed the Inspector General to undertake an assessment of the FAA's plans and strategy for the hiring, placement and training of FAA maintenance technicians. In September, 2016, the IG initiated an audit and evaluation of FAA's hiring and placement practices for the technician workforce. Additionally, the IG's audit announcement indicated that a follow-up review would address technician training. The Committee remains keenly interested in the results of both reviews. As the FAA continues to modernize the air traffic control system, the agency must provide robust and concurrent training to the technical workforce as new technologies are deployed. The FAA's technical operations workforce is critically important to ensure the safe operation of our nation's 24-hour/7-day-a-week air traffic control system. The Committee directs the IG to provide an update on the status of both reviews to the House and Senate Committees on Appropriations within 90 days of enactment of this Act. Allergic reactions aboard aircraft.--The Committee directs the FAA to review its policies concerning severe allergic reactions aboard aircraft and submit a report within 90 days of enactment of this Act detailing: the reporting requirements for airlines when an allergic reaction occurs, the data collection standards for such a report, and the number of reports in the past year. Harmonizing flight data and cockpit voice recorder regulations.--The Committee understands that automatic deployable flight recorders are among the acceptable technologies that meet new International Civil Aviation Organization (ICAO) requirements. The Committee remains concerned that the corresponding Federal Aviation Regulations (FARs) for Cockpit Voice and Flight Data Recorders have not been harmonized to reflect the allowed use of automatic deployable flight recorders, resulting in uncertain certification and installation requirements for aircraft manufacturers and airlines wishing to voluntarily install deployable flight recorders. The Committee directs FAA to formally update all FARs and any other necessary U.S. regulations to enable the voluntary installation and certification of FAA approved automatic deployable flight recorder systems in compliance with U.S. and international standards for commercial aircraft. Additive manufacturing.--The Committee recognizes the emergence of additive manufacturing (AM), the advances in the fabrication of complex structures has the potential to transform aircraft and spacecraft propulsion and eventually other high-value complex components of these vehicles. The Committee understands a primary challenge in AM for aerospace applications is the certification of flight worthiness of complex AM-constructed components. The Committee directs the FAA, in collaboration with academic and industry partners, to develop and define the critical standards and assessment methods for certifying AM components for aerospace applications including the development of advanced non-destructive evaluation methodologies for risk identification and assessment or as in-situ manufacturing process controls. In addition, the Committee directs the FAA to provide a report on the use of additively manufactured parts within the civil aerospace industry detailing any efforts to monitor what additively manufactured components are utilized on airframes, and what measures are being taken to monitor and mitigate the use of counterfeit additively manufactured parts. Designated airworthiness representative (DAR-56) program.-- The Committee notes the effectiveness of the DAR-56 certification program, which allows certified aircraft parts distributors to issue FAA airworthiness tags based on alternative documentation. The Committee encourages FAA to make the program permanent. Human intervention motivation study (HIMS) and the flight attendant drug and alcohol program (FADAP).--The Committee recognizes the effectiveness of the Human Intervention Motivation Study (HIMS) and the Flight Attendant Drug and Alcohol Program (FADAP) in mitigating drug and alcohol abuse through a peer identification and intervention program. The Committee recommends that the FAA continue to prioritize this program and urges the FAA to continue this program from within available resources. Aviation rulemaking committee, Part 135.--The Committee recommends that FAA convene an Aviation Rulemaking Committee (ARC) in order to examine rest and duty regulations governed by Part 135 and Subpart K of Part 91 of Title 14, Code of Federal Regulations. Such an ARC should ensure that all segments of the operation are represented in the ARC process. Industry representatives, fatigue experts, and exclusive representatives of Part 135 and 91k pilot labor should all be engaged in the discussions in order to ensure the full breadth of the industry is represented. The ARC should take into consideration the work of rulemaking committees addressing fatigue in aviation, scientific data derived from fatigue and sleep research, data gathered from aviation safety reporting programs, and make accommodations necessary for the diversity of operations conducted under part 135, including small businesses. Certificate management offices (CMO)/repair stations.--The Committee is pleased the FAA has realigned its Flight Standards Service from geographic to functional offices, each focusing on specialized areas of aviation safety oversight and technical expertise. Consistent with this emphasis on regulatory consistency and maximized use of FAA resources, the Committee directs the agency to report, within 180 days of enactment of this Act, on the feasibility of defining criteria similar to that currently being used by airline operations, under which the certificate management unit and certificate management office construct can be utilized by repair stations and other certificate holders. Part 135 industry trends.--The Committee directs the agency to provide, within 180 days of enactment of this Act, an update of ``Study of Operators Regulated Under Part 135'' (PL 112-95; Sec. 409) to cover activity between 2012-2016. The Committee encourages the agency to consult with industry in advance of the update on additional business, economic, employment and other data points that should be included to provide a more complete picture of the state of the industry. Improving air carrier certification for small business.-- The Committee is concerned FAA staffing and allocation of resources has led to a backlog of applicants and regional variability to manage or accept new applications for Single Pilot Part 135 Air Carrier certificates, an important part of creating new businesses opportunities and providing additional carrier paths for pilots. The Committee directs the agency provide an assessment of the current certification process for these small air carrier applicants, the number of persons currently seeking certification, the average time from initial application to certification and agency recommendations for more effectively allocating resources to lead to shorter certification times without compromising safety standards. Lap-held restraints.--The Committee directs the FAA report to the House and Senate Committees on Appropriations within 180 days of enactment what actions it plans to take to improve the safety of flying with a lap-held infant, including recommendations on minimum performance standards for lap-held restraints. COMMERCIAL SPACE TRANSPORTATION The Committee recommends $21,587,000 for the Office of Commercial Space Transportation, which is $1,761,000 above the fiscal year 2017 enacted level and $3,682,000 above the budget request. The additional funding will protect the workforce from attrition reductions that were proposed as part of the President's budget request. Maintaining the workforce of this office is essential to ensuring that the FAA can keep pace with the licensing and permitting needs of a growing and increasingly complex industry. Space launch system.--The Committee commends the FAA Office of Commercial Space Transportation's efforts to promote private sector lunar exploration and development and encourages the FAA to explicitly define non-interference and to enhance its payload review process to provide companies planning private sector lunar development with the security and predictability necessary to support substantial investments. The Committee also encourages the office, in collaboration with the Commercial Space Transportation Advisory Committee, to engage in conversation with NASA to explore the lift power and capacity of the Space Launch System (SLS) as a means of facilitating commercial-space efforts, in accordance with the Commercial Space Launch Act, in which the SLS sometimes serves in an infrastructure-building role to speed the transport of large-volume payloads and non-profit or cost-sharing payloads, and payloads which benefit from being inserted into lunar orbit together. FINANCE AND MANAGEMENT The Committee recommends $777,506,000 for finance and management activities, which is $6,164,000 above the fiscal year 2017 enacted level and $19,314,000 above the budget request. FAA telecommunications infrastructure mission support network.--The Committee is concerned by the FAA's decision to extend by five years its aging Mission Support Network, a decision which carries both technology and cost implications. Within 120 days of enactment of this Act, the FAA will provide to the Committee a report on the status of the FTI Mission Support Network along with future plans, including 1) the contract's current scope of service and performance, 2) current technology profile, including what services can and cannot be provided, and what, if any, technology services will likely be retired over the course of the extension, and 3) the extension's implications to the network's total cost of ownership. The report should also contain a discussion of the proposed decision to extend the contract sole-source, and whether the FAA has explored using alternative Government-wide telecommunications contract vehicles and how those alternative vehicles could meet current and future technology needs at a reduced cost. Regional offices/noise.--The Committee recognizes the critical role played by FAA regional offices in addressing community concerns with airplane noise. The Committee has provided additional resources in the operations account to address this issue, and directs the FAA to increase staff levels in the regions where appropriate to ensure proper community outreach to affected communities. Controller workforce.--The Committee directs FAA to continue to update the House and Senate Committees on Appropriations on the diversity of the controller workforce. The Committee notes that revised hiring procedures yielded a class of developmental controllers that represent a more diverse demographic. The Committee remains interested in the success of these new controllers and requests a briefing on their progress no later than 120 days after enactment of this Act. NEXTGEN AND OPERATIONS PLANNING The Committee recommends $59,951,000 for NextGen and Operations Planning, which is $204,000 below the fiscal year 2017 enacted level and $910,000 above the budget request. SECURITY AND HAZARDOUS MATERIALS SAFETY The Committee recommends $112,622,000 for Security and Hazardous Materials Safety, which is $5,461,000 above the fiscal year 2017 enacted level and $11,661,000 above the budget request. STAFF OFFICES The Committee recommends $212,253,000 for Staff Offices, which is $3,152,000 above the fiscal year 2017 enacted level and $7,385,000 above the budget request. BILL LANGUAGE Second career training program.--The bill retains language prohibiting the use of funds for the second career training program. This prohibition has been in annual appropriations Acts for many years, and is included in the President's budget request. Aviation user fees.--The bill includes a limitation carried for several years prohibiting funds from being used to finalize or implement any new unauthorized user fees. Aeronautical charting and cartography.--The bill maintains the provision prohibiting funds in this Act from being used to conduct aeronautical charting and cartography (AC&C) activities through the working capital fund (WCF). Credits.--The bill includes language allowing funds received from specified public, private, and foreign sources for expenses incurred to be credited to the appropriation. Contract weather observers.--The bill includes language which prohibits funds to eliminate the Contract Weather Observer program. FACILITIES AND EQUIPMENT (AIRPORT AND AIRWAY TRUST FUND) Appropriation, fiscal year 2017....................... $2,855,000,000 Budget request, fiscal year 2018...................... 2,766,200,000 Recommended in the bill............................... 2,855,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +88,800,000 (RESCISSION) Appropriation, fiscal year 2017....................... - - - Budget request, fiscal year 2018...................... -31,200,000 Recommended in the bill............................... - - - Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +31,200,000 The Facilities and Equipment (F&E) account is the principal means for modernizing and improving air traffic control and airway facilities. The appropriation also finances major capital investments required by other agency programs, experimental research and development facilities, and other improvements to enhance the safety and capacity of the airspace system. COMMITTEE RECOMMENDATION The Committee recommends an appropriation of $2,855,000,000 for the FAA's facilities and equipment program. This level is the same level provided in fiscal year 2017 and $88,800,000 above the budget request. The bill provides that, of the total amount recommended, $2,247,000,000 is available for obligation until September 30, 2019, and $493,000,000 (the amount for personnel and related expenses) is available until September 30, 2018, and $115,000,000 is available until expended for facilities replacements and improvements. The Committee does not recommend a rescission of $31,200,000 as proposed in the budget. NextGen.--The Committee provides $913,505,000 for NextGen programs in this account. This is $45,600,000 above the budget request. The Committee rejects the proposal in the budget request to reduce NextGen programs as an ill-advised, short- sighted approach that would put the modernization of our air traffic control system at risk. The Committee is especially concerned by the suspension of out-year NextGen investments indicated in the 5-year Capital Investment Plan (CIP), which dramatically reduces planned investments supported by stakeholders through the NextGen Advisory Committee (NAC). The Committee would welcome receiving a revised CIP that reflects NAC recommendations, especially for NextGen programs with a final investment plan. Satellite and global positioning systems NextGen programs.--The Committee recommendation places a high priority in accelerating the advancement of GPS and satellite enabled technologies. The Committee believes that statements made by Administration officials that the U.S. lags behind the rest of the world in the deployment of these technologies misrepresents the global leadership of U.S. engineers, scientists and manufacturers and the contributions they have made to our air traffic control system. The assertions also fail to recognize that U.S. airspace is the most complex and busiest in the world, and faces unique challenges by serving a general aviation community that surpasses any other Nation by far. The following table provides funding levels for facilities and equipment activities and budget line items. ------------------------------------------------------------------------ FY2018 Request FY2018 House ------------------------------------------------------------------------ Activity 1--Engineering, Development, Test and Evaluation Advanced Technology Development and 26,800,000 26,800,000 Prototyping.......................... William J. Hughes Technical Center 1,000,000 1,000,000 Laboratory Improvement............... William J. Hughes Technical Center 18,000,000 23,000,000 Facilities........................... William J. Hughes Technical Center 10,000,000 10,000,000 Infrastructure Sustainment........... Separation Management Portfolio....... 13,500,000 13,500,000 Traffic Flow Management Portfolio..... 10,800,000 10,800,000 On Demand NAS Portfolio............... 12,000,000 12,000,000 NAS Infrastructure Portfolio.......... 17,500,000 17,500,000 NextGen Support Portfolio............. 12,000,000 12,000,000 Unmanned Aircraft Systems (UAS)....... 15,000,000 15,000,000 Enterprise, Concept Development, Human 9,000,000 9,000,000 Factors, & Demonstrations Portfolio.. --------------------------------- TOTAL ACTIVITY 1.................. 145,600,000 150,600,000 Activity 2--Air Traffic Control Facilities and Equipment a. En Route Programs En Route Automation Modernization 76,650,000 86,250,000 (ERAM)--System Enhancements and Tech Refresh.............................. En Route Communications Gateway (ECG). 2,650,000 2,650,000 Next Generation Weather Radar 5,500,000 5,500,000 (NEXRAD)--Provide.................... Air Route Traffic Control Center 100,400,000 100,400,000 (ARTCC) & Combined Control Facility (CCF) Building Improvements.......... Air Traffic Management (ATM).......... 4,900,000 4,900,000 Air/Ground Communications 9,750,000 9,750,000 Infrastructure....................... Air Traffic Control En Route Radar 5,400,000 5,400,000 Facilities Improvements.............. Voice Switching and Control System 12,800,000 12,800,000 (VSCS)............................... Oceanic Automation System............. 23,100,000 23,100,000 Next Generation Very High Frequency 53,000,000 58,000,000 Air/Ground Communications (NEXCOM)... System-Wide Information Management.... 50,050,000 50,050,000 ADS-B NAS Wide Implementation......... 139,150,000 139,150,000 Windshear Detection Service........... 1,000,000 1,000,000 Collaborative Air Traffic Management 9,000,000 9,000,000 Technologies......................... Time Based Flow Management Portfolio.. 40,450,000 40,450,000 NextGen Weather Processors............ 35,450,000 40,450,000 Airborne Collision Avoidance System X 7,700,000 7,700,000 (ACASX).............................. Data Communications in Support of NG 154,100,000 175,100,000 Air Transportation System............ Non-Continental United States (Non- 11,000,000 11,000,000 CONUS) Automation.................... Reduced Oceanic Separation............ 4,350,000 14,350,000 En Route Service Improvements......... 3,000,000 3,000,000 Commercial Space Integration.......... 4,500,000 4,500,000 --------------------------------- Subtotal En Route Programs........ 753,900,000 804,500,000 b. Terminal Programs Terminal Doppler Weather Radar (TDWR)-- 3,800,000 3,800,000 Provide.............................. Standard Terminal Automation 86,700,000 86,700,000 Replacement System (STARS) (TAMR Phase 1)............................. Terminal Automation Modernization/ 66,100,000 66,100,000 Replacement Program (TAMR Phase 3)... Terminal Automation Program........... 8,493,000 8,493,000 Terminal Air Traffic Control 31,118,485 58,118,485 Facilities--Replace.................. ATCT/Terminal Radar Approach Control 56,800,000 61,800,000 (TRACON) Facilities--Improve......... Terminal Voice Switch Replacement 6,000,000 6,000,000 (TVSR)............................... NAS Facilities OSHA and Environmental 46,700,000 46,700,000 Standards Compliance................. Airport Surveillance Radar (ASR-9).... 11,400,000 11,400,000 Terminal Digital Radar (ASR-11) 3,200,000 3,200,000 Technology Refresh and Mobile Airport Surveillance Radar (MASR)............ Runway Status Lights.................. 2,800,000 2,800,000 National Airspace System Voice System 68,750,000 68,750,000 (NVS)................................ Integrated Display System (IDS)....... 5,000,000 5,000,000 Remote Monitoring and Logging System 7,400,000 7,400,000 (RMLS)............................... Mode S Service Life Extension Program 20,900,000 20,900,000 (SLEP)............................... Terminal Flight Data Manager (TFDM)... 90,350,000 90,350,000 National Air Space (NAS) Voice 5,000,000 5,000,000 Recorder Program (NVRP).............. Integrated Terminal Weather System 1,000,000 1,000,000 (ITWS)............................... Performance Based Navigation & 20,000,000 20,000,000 Metroplex Portfolio.................. --------------------------------- Subtotal Terminal Programs........ 541,511.485 573,511.485 c. Flight Service Programs Aviation Surface Observation System 10,000,000 10,000,000 (ASOS)............................... Future Flight Services Program........ 14,038,515 14,038,515 Alaska Flight Service Facility 2,650,000 2,650,000 Modernization (AFSFM)................ Weather Camera Program................ 1,300,000 1,300,000 --------------------------------- Subtotal Flight Service Programs.. 27,988,515 27,988,515 d. Landing and Navigational Aids Program VHF Omnidirectional Radio Range (VOR) 11,000,000 11,000,000 with Distance Measuring Equipment (DME)................................ Instrument Landing System (ILS)-- 7,000,000 7,000,000 Establish............................ Wide Area Augmentation System (WAAS) 102,300,000 105,300,000 for GPS.............................. Runway Visual Range (RVR) and Enhanced 4,000,000 4,000,000 Low Visibility Operations (ELVO)..... Approach Lighting System Improvement 3,000,000 3,000,000 Program (ALSIP)...................... Distance Measuring Equipment (DME).... 3,000,000 3,000,000 Visual NAVAIDS--Establish/Expand...... 2,000,000 2,000,000 Instrument Flight Procedures 8,500,000 8,500,000 Automation (IFPA).................... Navigation and Landing Aids--Service 3,000,000 3,000,000 Life Extension Program (SLEP)........ VASI Replacement--Replace with 5,000,000 5,000,000 Precision Approach Path Indicator.... GPS Civil Requirements................ - - - - - - Runway Safety Areas--Navigational 1,600,000 1,600,000 Mitigation........................... NAVAIDS Monitoring Equipment.......... 2,000,000 2,000,000 --------------------------------- Subtotal Landing and Navigational 152,400,000 155,400,000 Aids Programs.................... e. Other ATC Facilities Programs Fuel Storage Tank Replacement and 28,100,000 28,100,000 Management........................... Unstaffed Infrastructure Sustainment.. 35,700,000 35,700,000 Aircraft Related Equipment Program.... 12,500,000 12,500,000 Airport Cable Loop Systems--Sustained 8,000,000 8,000,000 Support.............................. Alaskan Satellite Telecommunications 20,900,000 20,900,000 Infrastructure (ASTI)................ Facilities Decommissioning............ 13,900,000 13,900,000 Electrical Power Systems--Sustain/ 110,000,000 99,000,000 Support.............................. Energy Management and Compliance (EMC) 2,400,000 2,400,000 Child Care Center Sustainment......... 1,000,000 1,000,000 FAA Telecommunications Infrastructure. 2,000,000 2,000,000 Data Visualization, Analysis and 5,500,000 5,500,000 Reporting System (DVARS)............. TDM-to-IP Migration................... 3,000,000 3,000,000 --------------------------------- Subtotal Other ATC Facilities 243,000,000 232,000,000 Programs......................... --------------------------------- TOTAL ACTIVITY 2.............. 1,718,800,000 1,793,400,000 Activity 3--Non-Air Traffic Control Facilities and Equipment a. Support Equipment Hazardous Materials Management........ 35,300,000 35,300,000 Aviation Safety Analysis System (ASAS) 12,000,000 12,000,000 National Air Space (NAS) Recovery 12,000,000 12,000,000 Communications (RCOM)................ Facility Security Risk Management..... 20,400,000 20,400,000 Information Security.................. 20,700,000 20,700,000 System Approach for Safety Oversight 25,800,000 25,800,000 (SASO)............................... Aviation Safety Knowledge Management 4,000,000 4,000,000 Environment (ASKME).................. Aerospace Medical Equipment Needs 7,000,000 7,000,000 (AMEN)............................... System Safety Management Portfolio.... 16,200,000 16,200,000 National Test Equipment Program....... 4,000,000 4,000,000 Mobile Assets Management Program...... 3,600,000 3,600,000 Aerospace Medicine Safety Information 14,000,000 14,000,000 Systems (AMSIS)...................... Tower Simulation System (TSS) 3,000,000 3,000,000 Technology Refresh................... --------------------------------- Subtotal Support Equipment........ 178,000,000 178,000,000 b. Training, Equipment and Facilities Aeronautical Center Infrastructure 14,000,000 14,000,000 Modernization........................ Distance Learning..................... 1,000,000 1,000,000 --------------------------------- Subtotal Training, Equipment and 15,000,000 15,000,000 Facilities....................... --------------------------------- TOTAL ACTIVITY 3.............. 193,000,000 193,000,000 Activity 4--Facilities and Equipment Mission Support a. System Support and Services System Engineering and Development 35,700,000 35,700,000 Support.............................. Program Support Leases................ 47,000,000 47,000,000 Logistics and Acquisition Support 11,000,000 11,000,000 Services............................. Mike Monroney Aeronautical Center 19,700,000 19,700,000 Leases............................... Transition Engineering Support........ 19,900,000 19,900,000 Technical Support Services Contract 23,000,000 23,000,000 (TSSC)............................... Resource Tracking Program (RTP)....... 6,000,000 6,000,000 Center for Advanced Aviation System 57,000,000 57,000,000 Development (CAASD).................. Aeronautical Information Management 4,700,000 4,700,000 Program.............................. Cross Agency NextGen Management....... 1,000,000 1,000,000 --------------------------------- TOTAL ACTIVITY 4.................. 225,000,000 225,000,000 Activity 5--Personnel and Related Expenses Personnel and Related Expenses........ 483,800,000 493,000,000 --------------------------------- Total............................. 2,766,200,000 2,855,000,000 ------------------------------------------------------------------------ William J. Hughes Technical Center facilities.--The recommendation includes $23,000,000 for William J. Hughes Facilities improvements, an increase of $5,000,000 above the budget request. The Committee directs the FAA to use the additional resources to develop a plan to combine all National Air Space and Department of Defenses operational systems at the FAA Technical Center into one 24/7/365 NAS compliant facility at the Technical Center. The plan shall include required environmental studies, site location study, engineering design and drawings of the building, anticipated costs, and all other required paperwork and approvals with a goal to start construction expeditiously. The Administrator shall execute the plan and complete required parts of the plan by the end of fiscal year 2018. Unmanned aerial systems (UAS) and international traffic management.--The Committee provides $86,250,000 for En Route Automation Modernization--System Enhancements and Technology Refresh, an increase of $8,250,000 above the fiscal year 2017 enacted level and $9,600,000 above the budget request to continue to maintain and advance U.S. leadership in UAS integration and high altitude international traffic management. Next generation very high frequency air/ground communications (NEXCOM).--The Committee provides $58,000,000 for Next Generation Very High Frequency Air/Ground Communications, an increase of $5,000,000 above the budget request. The NEXCOM Segment 2 (NS2) Phase 1 & 2 Program replaces and modernizes the aging, unsupportable, and obsolete National Airspace System (NAS) Safety Critical Service air-to- ground (A/G) analog radios that allow direct voice communication with pilots in Terminal, Enroute, and Flight Services. The currently installed radios date back to 1967 and updated radio technology will improve system performance and dramatically reduce sustainment and support costs. These sustainment and support costs of the 50 year-old radios are significant and the FAA has had to resort to cannibalization of radio inventory for spare parts to support Safety Critical Service operational units. The Committee recognizes the importance of replacing these radios and is concerned with the FAA's recently revised Capital Investment Plan which delays the procurement and installation of the required radios. The Committee requests a report not later than 180 days after enactment that describes the FAA's plan to replace the radios and the revised deployment schedule. NextGen weather processor.--The Committee provides $40,450,000 for NextGen Weather Processor, an increase of $5,000,000 above the budget request. The Committee recognizes that the NextGen Weather Processor (NWP) has the capability to provide valuable and cost effective information to make better informed decisions concerning weather and air traffic control operations. In fact, NWP looks to be one of the NextGen initiatives that has high potential to start producing significant NextGen benefits through much improved weather prediction and forecasting in the National Airspace System. As part of that effort, the Committee recommends that the FAA dedicate sufficient funding to accelerate the development and deployment of NWP in an expeditious manner to realize the benefits of NWP sooner and reduce overall program costs. This would have a significant effect on improving safety and efficiency of air traffic operations in bad weather conditions. DataComm.--The Committee provides $175,100,000 for Data Communications (DataComm) in Support of the NextGen Air Transportation System, an increase of $21,000,000 above the budget request. The capabilities in Data Communications full services will reduce the need for the controller or pilot to voice complicated instructions consisting of long strings or route fixes that can often cause controllers and pilots to repeat the information until correct and confirmed. The increase level provided will enable the FAA to reduce congestion on radio frequencies which will reinforce the business case benefits and airlines investment in aircraft equipage which will increase the NextGen benefits accrued in the national airspace system. The airlines anticipate this capability will enable them to fly more efficient routes, saving time and fuel. The airspace users have expressed through the NextGen Advisory Committee (NAC) and other forums that their business case for investing in Data Comm relies on the capabilities delivered by En Route Full Services. Reduced oceanic separation/SBS advanced surveillance enhanced procedural separation.--The Committee provides $14,350,000 for Reduced Oceanic Separation portfolio, an increase of $10,000,000 above the budget request. The additional funding will accelerate testing and evaluation of the technology, operational trials, modification of automation systems, and other activities necessary to use space-based ADS- B for enhanced surveillance to enable reduced oceanic separation services. The Committee commends the FAA for requesting that the NextGen Advisory Committee (NAC) evaluate the benefit of enhanced surveillance capabilities. The NAC recently approved a final report that identified significant quantified benefits from using space-based ADS-B, mainly by enabling aircraft to obtain their preferred optimal flight tracks and altitudes to minimize fuel burn or to recover from delays. In addition to operational enhancements and efficiencies, the technology enables critical safety benefits, including filling existing surveillance gaps, precise search and rescue, global flight tracking, and reversing the rising number of denied weather deviations on oceanic tracks due to lack of surveillance. While the Committee appreciates recent progress, the Committee remains concerned that the FAA still lags behind other air navigation service providers in implementing space-based ADS-B. Therefore, the Committee directs the FAA to make a final investment decision not later than September 30, 2018 regarding a reduced oceanic separation capability that, if a positive business case is provided, would result in operational use by the end of 2020. Standard Terminal Automation Replacement System/Terminal Automation Modernization Replacement Program (STARS/TAMR).--The Committee is concerned that the FAA is not effectively proceeding with the development and implementation of the directed roadmap for the planned NextGen value added toolsets to aid in increasing safety, capacity, and efficiency to STARS, as directed by the Committee in fiscal year 2017. The Committee also is concerned that the FAA is not expeditiously developing and implementing new software-based toolsets that have the ability to provide significant enhancements and that take advantage of this new infrastructure. Therefore, the Committee directs the FAA to provide a STARS/TAMR roadmap within 90 days of the enactment of this Act. This roadmap should detail the future path including investment decision milestones that will be necessary in order to provide terminal area controllers with performance based navigation (PBN) and other NextGen initiatives such as improved terminal area weather. Terminal airport traffic control facilities--replace.--The Committee recommends $58,118,485, which is $27,000,000 more than the budget request. --Remote tower.--From the increase provided for terminal airport traffic control facilities--replace, $5,000,000 is only for continuing the ongoing remote tower project, including operating costs, and for deploying remote tower systems to at least 2 other airports. The Committee believes that the remote tower is a promising technology that will improve aviation safety, reduce capital costs, and increase operational efficiencies. In selecting airports to install a remote tower, the Committee directs the FAA to take into account the interest of the airport sponsor and to give priority to airports that are currently in the contract tower program that have aging towers in need of replacement or are non-towered airports that are viable candidates for the program. --Facility investments.--The recommendation for Terminal Airport Traffic Control Facilities--Replace also includes an additional $22,000,000 for the replacement of terminal air traffic control facilities and air traffic control towers. The Committee directs the FAA to use this additional funding, as well as funding provided for this activity in the fiscal year 2016 and fiscal year 2017 Appropriations Acts, for all air traffic control towers that are ready for land acquisition or construction. The Committee denies the FAA's request to postpone construction on air traffic control facilities. Aging contract towers.--The Committee notes that there are some contract towers that are more than 40 years of age, are non-compliant with OSHA standards, and have line of sight issues that adversely affect air traffic control safety. The Committee directs the Administration to conduct assessments of these towers and report back to the Committee within 90 days of enactment. Terminal radar approach control (TRACON) facilities-- improve.--The Committee recommendation includes $61,800,000 for TRACON facilities improvements, an additional $5,000,000 above the budget request. The FAA's budget request includes $11,200,000 for improvements to the agency's large terminal radar approach control (TRACON) facilities. The Committee directs the FAA to use the requested funding and the additional $5,000,000 for these improvements, and to use these funds for modernization and expansion efforts that will ensure the long- term viability of large TRACONs. Very high frequency (VHF) omni-directional range (VOR) and tactical air navigation (TACAN).--The Committee is aware of efforts underway to address the rationalization and recapitalization of aging en route navigational aids. These systems are critical to the safety, resiliency, and on-going operations of both civilian and military air navigation. The Committee directs the FAA to move ahead with the issuance of a request for proposals (RFP) to implement a service based procurement for Very High Frequency (VHF) Omni-Directional Range (VOR) and Tactical Air Navigation (TACAN) systems. The RFP shall be released with the objective of issuing a contract expeditiously. Wide Area Augmentation System (WAAS) for GPS.--The Committee believes that it is critical that the FAA's WAAS ground based infrastructure be ready to work with the new GPS III constellations dual frequency capability. The Committee understands that this effort was to be accomplished in WAAS DFO, Segment 2, which will develop and implement the new algorithms and integrity validation for this new safety-of-life application. The Committee also understands that WAAS DFO Segment 2 will begin acquisition in 2019. In the fiscal year 2017 appropriations Act, the Committee directed the FAA to begin algorithm development and test in support of dual frequency operations. In addition, the Committee recommended that the FAA dedicate sufficient funding to begin design, development, modeling and prototyping of the new dual frequency algorithms. The Committee directs the FAA to brief the House and Senate Committees on Appropriations on their plan for accomplishing this directed action within 120 days after enactment. WAAS GEO 7 satellite system.--The Committee recommends that development of the WAAS GEO 7 satellite system begin in fiscal year 2018 to ensure continuous sustainment of a full three- satellite WAAS navigation constellation. All current GEO host satellites reach the end of their base contracts by the end of 2017. So unless the FAA moves more expeditiously with the development of WAAS GEO 7, the window for the next available host satellite launches may pass, thereby delaying this navigational capability. This creates significant risk for the WAAS 3-satellite GEO constellation's ability to provide continuous uninterrupted service for aviation and other users. The Committee encourages the FAA to consider working with the current supplier in order to meet this window of opportunity. The Committee recommends $3,000,000 million in additional fiscal year 2018 funding to mitigate this risk and to initiate host satellite commitments, secure space and ground subcontracts, and obtain FAA approval to secure a lease with a satellite provider. BILL LANGUAGE Capital investment plan.--The bill continues to require the submission of a five-year capital investment plan. RESEARCH, ENGINEERING, AND DEVELOPMENT (AIRPORT AND AIRWAY TRUST FUND) Appropriation, fiscal year 2017....................... $176,500,000 Budget request, fiscal year 2018...................... 150,000,000 Recommended in the bill............................... 170,000,000 Bill compared with: Appropriation, fiscal year 2017................... -6,500,000 Budget request, fiscal year 2017.................. +20,000,000 This appropriation provides funding for long-term research, engineering, and development programs to improve the air traffic control system and to raise the level of aviation safety, as authorized by the Airport and Airway Improvement Act and the Federal Aviation Act. The appropriation also finances the research, engineering, and development needed to establish or modify federal air regulations. COMMITTEE RECOMMENDATION The Committee recommendation includes $170,000,000 for FAA's research, engineering, and development programs, which is $6,500,000 less than the fiscal year 2017 enacted level and $20,000,000 above the budget request. The Committee recommendation includes the following funding levels for research, engineering, and development programs. ------------------------------------------------------------------------ FY 2018 Request FY 2018 House ------------------------------------------------------------------------ Fire Research and Safety.............. $7,044,000 7,425,000 Propulsion and Fuel Systems........... 2,269,000 2,269,000 Advanced Materials/Structural Safety.. 4,338,000 7,000,000 Aircraft Icing/Digital System Safety.. 9,253,000 5,102,000 Continued Airworthiness............... 10,437,000 10,437,000 Aircraft Catastrophic Failure 1,570,000 1,528,000 Prevention Research.................. Flightdeck/Maintenance/System 6,825,000 7,305,000 Integration Human Factors............ System Safety Management.............. 4,149,000 6,500,000 Air Traffic Control/Technical 5,196,000 6,165,000 Operations Human Factors............. Aeromedical Research.................. 9,765,000 9,080,000 Weather Program....................... 13,399,000 15,476,000 Unmanned Aircraft Systems Research.... 6,787,000 13,787,000 NextGen-Alternative Fuels for General 5,924,000 7,000,000 Aviation............................. Commercial Space...................... 1,796,000 1,796,000 NextGen-Wake Turbulence............... 6,831,000 7,609,000 NextGen-Air Ground Integration Human 6,757,000 7,575,000 Factors.............................. NextGen-Weather Technology in the 3,644,000 4,059,000 Cockpit.............................. NextGen-Information Security.......... 1,000,000 1,000,000 Environment and Energy................ 14,497,000 16,013,000 NextGen-Environmental Research-- 23,151,000 27,174,000 Aircraft Technologies, Fuels, and Metrics.............................. System Planning and Resource 2,135,000 2,288,000 Management........................... William J. Hughes Technical Center 3,233,000 3,412,000 Laboratory Facility.................. --------------------------------- Research, Engineering and 150,000,000 170,000,000 Development Total................ ------------------------------------------------------------------------ Advanced material/structural integrity safety.--The Committee recommendation includes $7,000,000 for Advanced Material/Structural Integrity Safety, an increase of $2,662,000 above the budget request. NextGen-alternative fuels for general aviation.--The Committee provides $7,000,000 for NextGen-Alternative Fuels for General Aviation, an increase of $1,076,000 above the budget request. Unmanned aircraft systems research.--The Committee provides $13,787,000 for Unmanned Aircraft Systems Research, an increase of $7,000,000 above the budget request. The Administrator shall use FAA integrated laboratories, in partnership with NASA laboratories, to provide for proofs of concept supporting the integration of UAS into the NAS and to ensure interoperability with NAS systems. The Unmanned Traffic Management (UTM) system will create an air traffic control network for UAS that will have the capability to communicate with existing NAS infrastructure. UAS research plan.--The Committee directs the FAA to submit to the House and Senate Committees on Appropriations a comprehensive plan for research supporting full integration of unmanned aircraft systems no later than 180 days after enactment. The Committee requests that FAA provide a report within 120 days of enactment of this Act on its progress meeting statutory obligations under Section 2208 of the FAA Extension, Safety, and Security Act of 2016 (Public Law 114-190) to develop a research plan and establish a pilot program to demonstrate a UTM system. UAS test sites.--The Committee fully supports UAS Test Sites, which were established by Congress through the FAA Modernization Act of 2012 to safely integrate UAS research breakthroughs and technology innovations into national airspace in a safe and comprehensive manner. Since 2013, the UAS industry has grown leaps and bounds, fueled by opportunity and application. The technology continues to push the envelope, and the test sites serve to shepherd these technologies and innovations by merging public safety with application. GRANTS-IN-AID FOR AIRPORTS (LIQUIDATION OF CONTRACT AUTHORIZATION) (LIMITATION ON OBLIGATIONS) (AIRPORT AND AIRWAY TRUST FUND) ------------------------------------------------------------------------ Liquidation of contract Limitation on authorization obligations ------------------------------------------------------------------------ Appropriation, fiscal year 2017... $3,750,000,000 $3,350,000,000 Budget request, fiscal year 2018.. 3,000,000,000 3,350,000,000 Recommended in the bill........... 3,000,000,000 3,350,000,000 Bill compared to: Appropriation, fiscal year -750,000,000 - - - 2017......................... Budget request, fiscal year - - - - - - 2018......................... ------------------------------------------------------------------------ The bill includes a liquidating cash appropriation of $3,000,000,000 for grants-in-aid for airports, authorized by the Airport and Airway Improvement Act of 1982, as amended, which is $750,000,000 below the fiscal year 2017 enacted level and the same as the budget request. This funding provides for liquidation of obligations incurred pursuant to contract authority and annual limitations on obligations for grants-in- aid for airport planning and development, noise compatibility and planning, the military airport program, reliever airports, airport program administration, and other authorized activities. LIMITATION ON OBLIGATIONS The bill includes a limitation on obligations of $3,350,000,000 for fiscal year 2018, which is the same as both the fiscal year 2017 enacted level and the budget request. Airport connectivity.--The Committee is concerned about the impact of connectivity between regional airlines servicing small community airports and the legacy airlines at their hub airports. The inability of these regional airlines to link seamlessly with legacy airlines at their hub airports discourages passenger growth at small airports with existing service as well as those communities seeking to initiate or expand air service. The Committee encourages the Federal Aviation Administration to study this issue and determine additional steps that can be taken to provide interlining and seamless connectivity at hubs between regional airlines from all small communities to ultimate destinations, regardless of current code-sharing arrangements. Regulatory compliance.--The Committee is concerned about the findings of the 2013 Airport Cooperative Research Program report entitled, ``Impact of Regulatory Compliance Costs on Small Airports.'' The Committee directs FAA to develop a plan to implement the report's recommendations and report back to Congress within 180 days of enactment of this Act. Aircraft rescue and firefighting.--The Aircraft Rescue and Firefighting (ARFF) program requires certificated airports to ensure their designated personnel receive proper training, including initial and ongoing training. There are a number of training facilities across the country that provide different levels of training, including initial and recurrent annual training. The Committee is concerned about changes that have occurred in the number and location of training facilities offering ARFF training, particularly in the Great Lakes and Central FAA regions, which lack a single dedicated ARFF training site within their regions. The Committee is interested in ensuring that ARFF training is available and accessible in a cost-effective and sustainable setting. The Committee directs the FAA, within 120 days of enactment of this Act, to provide the Committee with a report on the number and suitability of training facilities in each of the FAA regions, or within a specified distance from the airports that require such training. The Committee also encourages the Administration to develop a plan for supporting efforts to address coverage gaps identified in this report, and which make use of existing cost- effective proposals, including partnerships between an airport sponsor and an established firefighting training facility that has already made an investment in training personnel and infrastructure. The Committee believes that there may be cost- savings and broader efficiencies for the federal taxpayer by utilizing this type of partnership, and encourages the FAA to evaluate proposals that incorporate existing fire training facilities. Noise insulation.--The Committee is concerned that federally funded sound insulation installed to mitigate airport noise is aging. The Committee directs the FAA to report to the Committee, not later than 180 days after the enactment of this Act, on the issues associated with aging sound insulation. The report should focus on sound insulation installed prior to 2007, examine the effective lifespan of common sound insulation including window and door upgrades, weather-stripping, and other sound mitigation treatments, and should include recommendations for the replacement of sound insulation that has exceeded its effective lifespan. Unmanned aircraft systems (UAS) threat mitigation at airports.--Reported sightings of UAS near airports remain a concern, and several options are available to mitigate the threat of errant and hostile UAS near airports. The FAA is working to develop remote identification and tracking standards for UAS in conjunction with industry, Federal government, and law enforcement partners. The Committee is interested in continued efforts to measure the effectiveness of counter UAS systems in an airport environment. To that end, the Committee encourages the FAA to continue working with national security and law enforcement partners, as well as aviation stakeholders, including airport operators, to ensure these technologies do not compromise the safe and efficient operation of the National Airspace System. The Committee expects the FAA to undertake this work in a fiscally responsible manner by continuing to utilize cooperative research agreements that minimize costs to the Federal government. Airport public private partnerships.--The FAA has invested in an innovative and timely program authorized by the Title 49 United States Code Sec. 47134, to establish a public private partnership program for local airports. Projects which have been preliminarily accepted and or will be approved have been chosen because they are innovative (conform with the intent of the ``Pilot Program''), will leverage considerable private capital, lower the traditional Federal investment for public use infrastructure, and create new jobs for America. To fulfill the intent of this program, the Committee directs FAA to expedite final processing and provide the highest priority funding for any project in this program that meets the criteria above. Runway safety area repairs.--The Committee expects the FAA to work expeditiously to identify grant eligibility for the restoration of key runway safety components such as Engineered Material Arresting System (EMAS) beds. The Committee notes that it included a provision in P.L. 115-31 that modified requirements regarding the use of funds for runway repairs in order to address immediate safety concerns. The Committee is aware of delays in the repair of EMAS beds, which are a critical safety component of airport Runway Safety Areas. The FAA is directed to provide a progress report to the House Committee on Appropriations that details the immediate measures the FAA has taken to ensure safety and operations at airports that have incurred damage to their EMAS beds, within 60 days of enactment of this Act. The FAA is further directed to provide a progress report to the House Committee on Appropriations that provides an update on the status of the EMAS bed repairs, within 180 days of enactment of this Act. Draft master plans.--The Committee encourages FAA to expedite the review of any draft Master Plan documents from such airports to help quickly identify and evaluate the full range of possible alternatives, including the possibility of alternative landing surfaces while also helping to protect the longterm flexibility of such airports to accommodate long-term growth. ADMINISTRATION AND RESEARCH PROGRAMS Airport administrative expenses.--Within the overall obligation limitation, the bill includes $111,863,000 for the administration of the airports program by the FAA. This funding level is $4,172,000 above the fiscal year 2017 enacted level and the same as the budget request. Airport cooperative research program (ACRP).--The recommendation includes $15,000,000, which is the same as the fiscal year 2017 enacted level and the budget request. The ACRP identifies shared problem areas facing airports that can be solved through applied research but are not adequately addressed by existing federal research programs. Airport technology research.--The Committee recommendation includes a minimum of $33,210,000 for the FAA's airport technology research program, which is $1,835,000 above the fiscal year 2017 enacted level and the same as the budget request. The funds provided for this program are utilized to conduct research in the areas of airport pavement; airport marking and lighting; airport rescue and firefighting; airport planning and design; wildlife hazard mitigation; and visual guidance. BILL LANGUAGE Runway incursion prevention systems and devices.-- Consistent with prior year appropriations Acts, the bill allows funds under this limitation to be used for airports to procure and install runway incursion prevention systems and devices. ADMINISTRATIVE PROVISIONS--FEDERAL AVIATION ADMINISTRATION Section 110. The Committee retains a provision limiting the number of technical work years at the Center for Advanced Aviation Systems Development to 600 in fiscal year 2018. Section 111. The Committee retains a provision prohibiting FAA from requiring airport sponsors to provide the agency `without cost' building construction, maintenance, utilities and expenses, or space in sponsor-owned buildings, except in the case of certain specified exceptions. Section 112. The Committee continues a provision allowing reimbursement for fees collected and credited under 49 U.S.C. 45303. Section 113. The Committee continues a provision allowing reimbursement of funds for providing technical assistance to foreign aviation authorities to be credited to the operations account. Section 114. The Committee continues a provision prohibiting FAA from paying Sunday premium pay, except in those cases where the individual actually worked on a Sunday. Section 115. The Committee continues a provision prohibiting FAA from using funds to purchase store gift cards or gift certificates through a government-issued credit card. Section 116. The Committee continues a provision that requires approval from the Deputy Assistant Secretary for Administration of the Department of Transportation for retention bonuses for any FAA employee. Section 117. The Committee continues a provision that requires the Secretary to block the display of an owner or operator's aircraft registration number in the Aircraft Situational Display to Industry program, upon the request of an owner or operator. Section 118. The Committee continues a provision that limits the number of FAA political appointees to nine. Section 119. The Committee continues a provision that prohibits funds for any increase in fees for navigational products until FAA has reported a justification for such fees to the House and Senate Committees on Appropriations. Section 119A. The Committee continues a provision that requires FAA to notify the House and Senate Committees on Appropriations at least 90 days before closing a regional operations center or reducing the services it provides. Section 119B. The Committee continues a provision prohibiting funds to change weight restrictions or prior permission rules at Teterboro Airport in Teterboro, New Jersey. Section 119C. The Committee continues a provision prohibiting funds to withhold funds from certain contract tower applicants. Section 119D. The Committee includes a provision that requires FAA to take certain actions related to organization delegation authorization. Federal Highway Administration The Federal Highway Administration (FHWA) provides financial assistance to the states to construct and improve roads and highways. It also provides technical assistance to other agencies and organizations involved in road building activities. Title 23 of the United States Code and other supporting statutes provide authority for the activities of the FHWA. Funding is provided by contract authority, while program levels are established by annual limitations on obligations, as set forth in appropriations Acts. LIMITATION ON ADMINISTRATIVE EXPENSES (HIGHWAY TRUST FUND) (INCLUDING TRANSFER OF FUNDS) Appropriation, fiscal year 2017....................... $435,795,000 Budget request, fiscal year 2018...................... 442,691,925 Recommended in the bill............................... 442,691,925 Bill compared with: Appropriation, fiscal year 2017................... +6,896,925 Budget request, fiscal year 2018.................. - - - The limitation on administrative expenses caps the amount, from within the limitation on obligations, that FHWA may spend on salaries and expenses necessary to conduct and administer the federal-aid highway program, highway-related research, and most other federal highway programs. COMMITTEE RECOMMENDATION The Committee recommends a limitation on FHWA administrative expenses of $442,691,925, including $3,248,000 transferred to the Appalachian Regional Commission. The recommendation is $6,896,925 above the fiscal year 2017 enacted level, and the same as the budget request. FEDERAL-AID HIGHWAYS (LIMITATION ON OBLIGATIONS) (HIGHWAY TRUST FUND) [In thousands of dollars] ---------------------------------------------------------------------------------------------------------------- Fiscal year Fiscal 2018 Program 2017 enacted request Recommended ---------------------------------------------------------------------------------------------------------------- Federal-aid highways (obligation limitation).................... 43,266,100 44,234,212 44,234,212 Exempt contract authority....................................... 739,000 739,000 739,000 Rescission of contract authority................................ -857,000 - - - -800,000 ----------------------------------------------- Total program level......................................... 43,148,100 44,973,212 44,173,212 ---------------------------------------------------------------------------------------------------------------- The federal-aid highways program is designed to aid in the development, operations, and management of an intermodal transportation system that is economically efficient and environmentally sound, to provide the foundation for the nation to compete in the global economy, and to move people and goods safely. Federal-aid highways and bridges are managed through a federal-state partnership. States and localities maintain ownership of and responsibility for the maintenance, repair and new construction of roads. State highway departments have the authority to initiate federal-aid projects, subject to FHWA approval of the plans, specifications, and cost estimates. The federal government provides financial support, on a reimbursable basis, for construction and repair through matching grants. Programs included within the federal-aid highways program are financed from the highway trust fund. The federal-aid highways program is funded by contract authority, and liquidating cash appropriations are subsequently provided to fund outlays resulting from obligations incurred under contract authority. The Committee sets, through the annual appropriations process, an overall limitation on the total contract authority that can be obligated under the program in a given year. COMMITTEE RECOMMENDATION The Committee recommends a total program level of $44,173,212,000 for the activities of FHWA in fiscal year 2018. This amount is $1,025,112,000 above the fiscal year 2017 enacted level and $800,000,000 below the budget request. Included within the recommended amount is an obligation limitation of $44,234,212,000, $739,000,000 in contract authority that is exempt from the obligation limitation, and an $800,000,000 rescission of prior year unobligated contract authority balances. Highway guide sign fonts.--In early 2016, FHWA notified state transportation agencies of its intention to rescind approval for the use of an alternate font on highway guide signs. The decision was made without adequate public input, and immediately impacted an estimated 26 states that had been given prior approval for alternate font use as a safe way to communicate with the traveling public. In order to provide an opportunity to fully consider the impact of this decision, the bill prohibits funds from being used to enforce actions terminating the interim approval of this alternate font during fiscal year 2018. The Committee is also aware of recent research regarding the safety and effectiveness of the alternate font, and that multiple states have submitted comments to FHWA in support of reinstating approval for the alternate font. FHWA is directed to conduct a comprehensive review of the research on this alternate font and to report back to the Committee within 90 days of enactment of this Act. The report must document the safety and cost implications of the decision to terminate approval and fully address the comments submitted by affected states during the December 13, 2016 Request for Information related to the alternate font. Transportation project delays.--The Committee notes the significant increase in transportation project development timelines from planning and design to completion of construction. Analyses from the Department of Transportation and independent organizations show major highway projects currently take between 10 and 20 years to complete, twice their duration 40 years ago. Transportation projects are frequently delayed by untold design changes, environmental regulations, right-of-way issues, utility coordination, outdated construction methodologies, inadequate workforce development practices, and poor project management execution. Unnecessarily long project timelines increase project costs, introduce programmatic inefficiencies, encourage superfluous design changes, and ultimately obstruct the delivery of desperately needed infrastructure in the United States. The Committee supports the Department's efforts to research and implement accelerated and integrative project management and collaborative development strategies to compress project timelines and enhance stakeholder participation. It recommends relying on proven applied transportation research institutions to achieve these objectives. The administrative burden on compliance of every action that triggers the National Environmental Policy Act (NEPA) has held up countless federally funded projects including projects to build our nation's infrastructure. The Committee encourages the Secretary to use all existing authorities to implement Executive Order 13766 in order to accelerate infrastructure projects funded in fiscal year 2018. Bridge corrosion control best practices.--The Committee is concerned with the large number of structurally deficient bridges in the U.S. and recognizes that corrosion is a leading cause of bridge failure. The Committee also recognizes that the use of industry best practices in corrosion planning and prevention can greatly lengthen the lifecycle of a bridge, saving taxpayer money and protecting public safety and the environment. Therefore, the Committee directs the Secretary to consult with state transportation departments to ensure that contractors and subcontractors hired for bridge construction, alteration or maintenance projects using federal taxpayer money, other than those involving minor repair work, are utilizing industry best practices to prevent, mitigate and control corrosion. Industry best practices include surface preparation, protective coatings, materials selection, cathodic protection, corrosion engineering, and personnel training. The Secretary should ensure that state departments of transportation are using contractors and subcontractors that are qualified, as determined by a third-party organization, as capable of meeting industry best practices. The Committee expects the Secretary to report back to the Committee, and to the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee, within one year of enactment of this legislation, on the status of corrosion control planning by state departments of transportation, and the status of corrosion control best practice requirements in state regulations and in bid specifications for bridge projects using federal taxpayer money. The Committee expects the report to highlight what steps the Secretary has taken, in consultation with state departments of transportation, to ensure that contractors and subcontractors hired for bridge construction, alteration or maintenance projects using federal taxpayer money are qualified and utilizing industry best practices to prevent, mitigate and control corrosion in bridge projects. Bridge and structure product and technology innovations clearing house.--The Committee directs the Department to facilitate implementation of new and advanced transportation infrastructure by promoting and advancing new products and innovations related to highway bridges and structures. Unfortunately, the mainstreaming of new innovations within the surface transportation communities is a lengthy, complex, and difficult process. As part of this action, the Committee directs the Department to serve as a clearing house for new innovations by providing a specific location for bridge and structure stakeholders to find technically robust and unbiased information and reports that evaluate innovations and accelerate acceptance and implementation of new bridge and structure materials and technologies. Culvert and storm sewer materials procurement.--The Committee directs the Secretary to evaluate the methods by which States procure culvert and storm sewer materials and the impact of those methods on project costs, including the extent to which such methods take into account environmental principles, engineering principles, and the varying needs of projects based on geographic location. Geosynthetic reinforced soil-integrated bridge systems.-- The Committee supports continuing the geosynthetic reinforced soil-integrated bridge system program including research and deployment to capitalize on investments in the program. The Committee encourages FHWA to fund research to address development of technical specifications for segmental facing material durability, connections between geosynthetics and segmental facing materials in retaining walls, including bridge abutments, segmental unit sound barriers, and scour countermeasures in erosion control systems. The Committee encourages FHWA to complete currently planned cost studies of geosynthetic-reinforced soil abutments, consider grants to deploy innovations in geosynthetic-reinforced abutments, segmental sound barriers, and flooding scour countermeasures, to address technical specifications for segmental face durability and geosynthetics connections, and to prepare and distribute reports to state DOTs to enhance state and local application. The Committee encourages FHWA to use demonstration grants to deploy innovations in geosynthetics and segmental retaining walls. Permeable pavements.--The Committee encourages the Secretary to accelerate research, demonstration, and deployment of permeable pavements to achieve flood mitigation, pollutant reduction, stormwater runoff reduction, and conservation. Projects may include roadway shoulder load testing and documenting lifecycle cost efficiency. Recycled materials.--Section 1428 of the Fixing America's Surface Transportation Act (FAST Act) requires the Secretary to encourage use of durable and sustainable materials. The Committee encourages FHWA to fulfill these objectives and to consider working collaboratively with the Expert Task Group, the American Association of State Highway and Transportation Officials, and industry stakeholders in developing revised standards that allow for the maximum use of recycled materials without detrimental impact to lifecycle cost. Federally-owned bridges.--The Committee recognizes that there are a number of infrastructure projects owned solely by the federal government that are in serious need of repair. The Committee strongly encourages the Department to give the highest priority to grant applications for federal infrastructure projects which serve the greatest purpose in terms of public use. The attributes of infrastructure projects that should be given the highest priority must include, but should not be limited to, high rates of traffic, facilitation of regional traffic patterns, proximity to major metropolitan areas, facilitation of interstate commerce, accessibility to and from major metropolitan areas, and national security purpose in that they are essential evacuation routes during emergency situations. Other attributes--such as projects which link states, federal districts, national parks, or territories to other major national monuments and parks--should also be considered. Commercial roads in the appalachian development highway system.--The Committee encourages FHWA to work with relevant state departments of transportation in Appalachia to ensure that construction and repair projects are prioritized for roads of critical commercial importance in the historic Appalachian Development Highway System. Border state infrastructure.--The Department of Transportation shall encourage states using federal funds designated for border state infrastructure to ensure participation of city and county governments along the U.S.- Mexico border in project selection processes. Transportation infrastructure and military installations.-- Since the passage of the Federal-Aid Highway Act of 1956 (P.L. 84-627), investments in our nation's transportation infrastructure have been directly tied to supporting national defense. Access to and from military installations continues to impact operations and local communities. The Committee strongly encourages the Secretary of Transportation to work with the Secretary of Defense to assess the transportation infrastructure that supports access to and from domestic military installations and to develop a strategy for addressing opportunities to improve base access and egress, impact on the local community, and national security. Critical commerce corridors.--The Committee believes critical commerce corridors, an authorized use of funds in the nationally significant freight and highway projects program, can improve our economic efficiency, reduce travel times, and promote safe travel on our nation's roads and highways. These corridors include existing highways where a barrier physically separates lanes dedicated to heavy commercial trucks from lanes dedicated to passenger vehicles. The Committee encourages DOT to strongly consider applications for the creation of critical commerce corridors when awarding grants to individual states. Freight transportation projects.--Major freight corridors improve our economic efficiency, advance exports and imports, increase the efficiency of national and international freight movement, promote economic growth on a regional and national basis, and increase employment. As an example, IH 35 in Texas, which carries more than ten percent of the freight traffic for the entire country remains a critical component of the Primary Highway Freight System on the National Highway Freight Network. The Committee believes that funding for transportation projects that impact the National Highway Freight Network should be a high priority. Technology and innovation deployment program.--The Committee supports the technology and innovation deployment program's efforts to improve the safety, efficiency, reliability, and performance of our Nation's transportation infrastructure. There is a growing need to accelerate the adoption of best practices, technologies, and materials that lead to faster construction and cost-effective rehabilitation of efficient and safe bridges. The Committee encourages the Department to use these funds for the demonstration and deployment of advanced composite materials in bridge replacement and rehabilitation. JobMod software.--The Committee directs the Secretary within 180 days of enactment of this Act to revise and update the JobMod input-output economic software model, or equivalent, to ensure that it is capable of estimating the number of jobs supported by $1,000,000,000 of federal-aid highway expenditure as well as the number of on-project jobs created by highway project investments eligible under Title 23, United States Code. Noise barrier designs and materials.--The Committee recognizes that high speed traffic in municipal and suburban areas has created serious noise concerns for many residential and business communities and effective noise barrier designs are important to the health and welfare of the community. Innovative engineered products derived from natural materials with low embodied energy have been shown to be cost effective and aesthetically pleasing materials to use in the construction of noise barrier systems. Therefore the Committee directs the Secretary of Transportation to prioritize the use of innovative natural building materials and design techniques with low embodied energy in the construction of noise barrier systems in order to increase efficiency and reduce material cost. (LIQUIDATION OF CONTRACT AUTHORIZATION) (HIGHWAY TRUST FUND) Appropriation, fiscal year 2017....................... $44,005,100,000 Budget request, fiscal year 2018...................... 44,973,212,000 Recommended in the bill............................... 44,973,212,000 Bill compared with: Appropriation, fiscal year 2017................... +968,112,000 Budget request, fiscal year 2018.................. - - - COMMITTEE RECOMMENDATION The Committee recommends a liquidating cash appropriation of $44,973,212,000, which is $968,112,000 above the enacted level and the same as the budget request. This is the amount required to pay the outstanding obligations of the highway program at levels provided in this Act and prior appropriations Acts. (RESCISSION) (HIGHWAY TRUST FUND) Appropriation, fiscal year 2017....................... -$857,000,000 Budget request, fiscal year 2018...................... - - - Recommended in the bill............................... -800,000,000 Bill compared with: Appropriation, fiscal year 2017................... +57,000,000 Budget request, fiscal year 2018.................. -800,000,000 COMMITTEE RECOMMENDATION The Committee recommends a rescission of $800,000,000, which is $57,000,000 less than the 2017 enacted rescission and $800,000,000 larger than the budget request. ADMINISTRATIVE PROVISIONS--FEDERAL HIGHWAY ADMINISTRATION Section 120 distributes obligation authority among federal- aid highway programs. Section 121 credits funds received by the Bureau of Transportation Statistics to the federal-aid highways account. Section 122 provides requirements for any waiver of the Buy America Act. Section 123 requires congressional notification before the Department provides credit assistance under the TIFIA program. Section 124 requires 60-day notification to the Committees on Appropriations of any grants as authorized under 23 U.S.C. 117. Section 125 prohibits the termination of the Clearview font as an approved alternate font on highway guide signs. Section 126 modifies the application of a federal truck weight exemption to include the State of North Dakota. Federal Motor Carrier Safety Administration The Federal Motor Carrier Safety Administration (FMCSA) was established within the Department of Transportation (DOT) by Congress through the Motor Carrier Safety Improvement Act of 1999. FMCSA's mission is to promote safe commercial motor vehicle operations and reduce truck and bus crashes. FMCSA works with federal, state, and local entities, the motor carrier industry, highway safety organizations, and the public to further its mission. FMCSA resources are used to prevent and mitigate commercial vehicle accidents through regulation, enforcement, stakeholder training, technological innovation, and improved information systems. FMCSA also is responsible for enforcing federal motor carrier safety and hazardous materials regulations for all commercial vehicles entering the United States along its southern and northern borders. MOTOR CARRIER SAFETY OPERATIONS AND PROGRAMS (LIQUIDATION OF CONTRACT AUTHORIZATION) (LIMITATION ON OBLIGATIONS) (HIGHWAY TRUST FUND) ------------------------------------------------------------------------ Liquidation of Contract Limitation on Authorization Obligations ------------------------------------------------------------------------ Appropriation, fiscal year $277,200,000 ($277,200,000) 2017....................... Budget request, fiscal year 283,000,000 (283,000,000) 2018....................... Recommended in the bill..... 283,000,000 (283,000,000) Bill compared with: Appropriation, fiscal +5,800,000 (+5,800,000) year 2017.................. Budget request, fiscal - - - (- - -) year 2018.................. ------------------------------------------------------------------------ This limitation controls FMCSA spending on salaries, operating expenses, and research. It provides resources to support motor carrier safety program activities and to maintain the agency's administrative infrastructure. This funding supports nationwide motor carrier safety and consumer enforcement efforts, including the Compliance, Safety, and Accountability Program, regulation and enforcement of freight transport, and federal safety enforcement at the U.S. borders. These resources also fund regulatory development and implementation, information management, research and technology, safety education and outreach, and the safety and consumer telephone hotline. COMMITTEE RECOMMENDATION The Committee recommends $283,000,000 in liquidating cash for motor carrier safety operations and programs. The Committee also recommends limiting obligations from the highway trust fund to $283,000,000 for motor carrier safety operations and programs in fiscal year 2018. These levels are $5,800,000 above the fiscal year 2017 enacted level and the same as the budget request. The Committee continues bill language specifying funding amounts for the research and technology program and adds language specifying funding amounts for information management, both to remain available until September 30, 2020. Bus lease and interchange rule.--On August 31, 2016, FMCSA announced its intent to issue a rulemaking to revise the final rule concerning the lease and interchange of passenger carrying motor vehicles, in response to numerous petitions for reconsideration. On June 16, 2017, FMCSA published another notice proposing to respond to the same petitions for reconsideration and seeking comment. However, the June 2017 notice has led to confusion for the public because it is not titled a notice of proposed rulemaking, it does not include regulatory text on which to comment, and the content of the notice is inconsistent with the August 2016 notice. The Committee directs FMCSA to issue a formal notice of proposed rulemaking to modify the rule to resolve the issues as identified in its August 2016 notice, including proposed regulatory text, and to ensure the rule appropriately targets unsafe passenger carriers without unduly interfering in compliant business operations. If FMCSA is unable to effect a modification of the rule by January 1, 2019, the Committee expects FMCSA to grant an additional extension of the compliance date long enough to accommodate an appropriate modification of the rule. Wireless roadside inspection programs.--The Committee remains concerned about the FMCSA wireless roadside inspection program's impact on private sector innovation and motor carrier safety and operations. The Committee urges the Secretary to continue to monitor this program, as well as other commercially available systems and products, and to take steps to avoid any conflict with existing non-Federal electronic screening systems, duplication of commercially available software applications, overreach of existing authority, and failure to address privacy concerns. 30-minute rest period exemptions.--The 30-minute rest period appropriately seeks to protect safety by ensuring that drivers are not driving more than eight hours without a thirty- minute, non-driving rest period. FMCSA has granted a number of exemptions to these regulations without compromising safety in order to meet the needs of specific industries. Drivers that make multiple stops throughout the day and are working during those non-driving periods, including the loading and unloading of products to be delivered, are experiencing routine breaks from driving while performing on-duty activities. When evaluating exemption requests, the Committee encourages FMCSA to consider: (1) the safety benefits of making routine stops during the day, (2) the safety benefits of drivers remaining physically active during non-driving periods, and (3) the safety implications of adding additional vehicle miles operated to the road if exemptions are not granted. Safety management system data sharing.--The Committee believes that, as important safety partners, motor carrier insurers should have the same access to safety management system (SMS) data as the motor carriers they insure. The Committee therefore urges FMCSA to implement appropriate credentialing that will allow insurers or potential insurers of motor carriers access to SMS data. The Committee believes that doing so will advance highway safety. The Committee urges the Department to provide for such access within the time frame specified in Sections 5221-5223 of the FAST Act for implementing improvements to the Compliance, Safety, Accountability Program and SMS, and restoring public access to previously available information. Livestock and insect carriers.--FMCSA has been responsive to problems encountered by motor carriers attempting to comply with the hours-of-service (HOS) regulations while transporting live cargo. The requirement that drivers take a 30-minute break no later than eight hours after coming on duty is problematic for livestock which can become overheated and may sometimes die without the air flow provided by the motion of the truck. A 30- minute break also extends the time animals must spend on the vehicle which is unavoidably stressful. When approached for relief, FMCSA issued a 90-day waiver of the break requirement to get agricultural carriers through the heat of the summer months. The Agency followed up with a 1-year exemption, and because no adverse effects on highway safety were observed, it subsequently extended the exemption for an additional 2 years. Transporters of bee hives reported similar problems with the 30-minute break and FMCSA granted those carriers a 2-year exemption from the break requirement as well. Recognizing the significance of the problem identified by livestock and bee transporters (and other segments of the motor carrier industry), Congress enacted Sec. 5206(b)(1) of the Fixing America's Surface Transportation Act to make these existing HOS exemptions permanent. Livestock transporters have also drawn attention to the FMCSA rule that limits driving time to 11 hours within a 14- hour window after the driver comes on duty. Although drivers transporting ``agricultural commodities,'' including livestock, are exempt from the HOS regulations while operating within 150 air-miles of the source of such commodities, livestock haulers sometimes make deliveries well beyond the exempt zone. On these trips, they may exceed the 11- and 14-hour limits, even though their HOS ``clock'' does not start until they go beyond the 150 air-mile radius. The Committee directs FMCSA to balance the welfare of livestock and the risks of driver fatigue on trips beyond the exempt zone and to pay close attention to the special circumstances of agricultural transporters. FMCSA shall continue using its regulatory tools to grant relief that appropriately reconciles highway safety with the unique needs of these carriers and their living cargo. Regulatory compliance burdens on small carriers.--Small and independent commercial freight carriers are the backbone of the trucking industry and several rulemakings advanced under the previous administration have placed an unusually heavy burden on this critical segment of the trucking industry. While the Committee acknowledges the importance of ensuring the safety of truckers and the rest of the driving public, new regulations must be implemented and enforced in a way that is mindful of the thousands of small businesses that bear the cost of compliance. For example, the Electronic Logging Device (ELD) mandate is projected to cost over $2,000,000,000 to implement making it one of the most expensive of all transportation rulemakings advanced under the previous administration. While large carriers already deploy similar technologies for fleet management, smaller carriers will disproportionately bear new costs associated with the mandate and with no compensating benefit to their bottom line. The Committee is concerned by reports of serious complications associated with implementation. Many significant technological concerns remain unresolved, including certification of devices, connectivity problems in remote locations, cyber vulnerabilities, and the ability of law enforcement to access data. Further, there are several industries such as carriers of livestock, insects, and other agricultural products that operate under a complex array of HOS exemptions due to the nature of their business and concerns remain as to whether the technology can process these exemptions. As a consequence, many carriers have delayed purchase and installation of ELDs until they can be certain the technology will be compliant. The Committee directs FMCSA to review ELD manufacturers technology platforms to confirm that devices not only meet standards and specifications necessary for all affected industries and fleet sizes to be compliant but also provide a user interface that is reasonably easy to navigate. In light of the heavy burden of this mandate, especially on small carriers, the Committee directs the Department to analyze whether a full or targeted delay in ELD implementation and enforcement would be appropriate and, if so, what options DOT has within its statutory authority to provide temporary regulatory relief until all ELD implementation challenges can be resolved. FMCSA shall provide a report on its findings to the House and Senate Committees on Appropriations within 60 days of enactment of this Act. MOTOR CARRIER SAFETY GRANTS (LIQUIDATION OF CONTRACT AUTHORIZATION) (LIMITATION ON OBLIGATIONS) (HIGHWAY TRUST FUND) ------------------------------------------------------------------------ Liquidation of Contract Limitation on Authorization Obligations ------------------------------------------------------------------------ Appropriation, fiscal year $367,000,000 ($367,000,000) 2017....................... Budget request, fiscal year 374,800,000 (374,800,000) 2018....................... Recommended in the bill..... 374,800,000 (474,800,000) Bill compared with: Appropriation, fiscal +7,800,000 (+107,800,000) year 2017.................. Budget request, fiscal - - - (+100,000,000) year 2018.................. ------------------------------------------------------------------------ FMCSA's motor carrier safety grants are used to support compliance reviews in the states, identify and apprehend traffic violators, conduct roadside inspections, and conduct safety audits of new entrant carriers. Additionally, grants are provided to states for improvement of state commercial driver's license oversight activities. COMMITTEE RECOMMENDATION The Committee recommends $374,800,000 in liquidating cash and a $474,800,000 limitation on obligations for these programs, in fiscal year 2018. The obligation limitation is $107,800,000 above the fiscal year 2017 enacted level and $100,000,000 above the budget request. The Committee recommends the following obligation limitations for programs funded under this account: ------------------------------------------------------------------------ ------------------------------------------------------------------------ Motor carrier safety assistance program.............. ($298,900,000) High priority activities program..................... (43,100,000) Commercial motor vehicle operator grants program..... (1,000,000) Commercial driver's license program implementation (31,800,000) program............................................. Highly automated commercial vehicle research and (100,000,000) development program................................. ------------------------------------------------------------------------ Highly automated commercial vehicle research and development program.--The Committee recognizes the rapid pace at which vehicle technology is developing, and is interested in validating the safety of these new technologies. As automated safety features continue to advance, it is imperative that DOT has a clear understanding of new technologies and related cybersecurity issues. Understanding how technology advances are evolving and converging will ensure that businesses, consumers, regulators, and other stakeholders are best able to navigate and implement new vehicle capabilities. To forward this understanding, the Committee recommendation provides $100,000,000 for a highly automated commercial vehicle research and development program dedicated to research and demonstrations of highly autonomous vehicle (HAV) technologies and advanced driver automation systems (ADAS). ADAS applications include forward collision warning, pedestrian/ cyclist collision warning, headway monitoring warning, lane departure warning, intelligent high beam control, and speed limit indicator systems. No less than $11,000,000 shall be for direct expenditures on HAV research activities and related contracts and no less than $1,500,000 shall be for ADAS research activities and related contracts. All funded activities shall be administered in coordination with the National Highway Traffic Safety Administration (NHTSA) and shall supplement and not supplant NHTSA's vehicle safety research program including amounts provided for vehicle electronics and emerging technology under the NHTSA Operations and Research heading. The Committee expects the Secretary to coordinate research funding across the Department to deliver a holistic HAV/ADAS research plan that advances DOT's understanding of HAV and ADAS technologies in general and that benefits both commercial motor vehicle and light duty vehicle technology applications. In general, the Committee expects the Secretary to prioritize research initiatives that have the strongest potential to advance the safe deployment of HAV and ADAS technology and deliver the highest net benefits to road safety. In addition to direct research and development activities, the Secretary shall solicit applications for autonomous vehicle project grants to test the feasibility of deployment through geographically contained demonstrations including but not limited to demonstrations of commercial freight corridors, commercial bus service, and ridesharing programs. In reviewing applications, the Secretary shall give priority to applicants that (1) evaluate HAV or ADAS technologies related to commercial motor vehicle and ridesharing applications, (2) include or are coordinated with research underway at designated automated vehicle proving grounds, (3) provide for the gathering and sharing of critical safety data with the government and other key stakeholders, or (4) evaluate HAV or ADAS applications that benefit transportation-challenged populations including the elderly, individuals with disabilities, and children. ADMINISTRATIVE PROVISIONS--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION Section 130 subjects the funds appropriated in this Act to certain terms and conditions regarding Mexican-domiciled motor carriers. Section 131 requires FMCSA to send notice of 49 CFR section 385.308 violations by certified mail, registered mail, or some other manner of delivery that records receipt of the notice by the persons responsible for the violations. Section 132 prohibits funds from being used to enforce the requirements of section 31137 of title 49, or any regulation pursuant to such section, with respect to carriers transporting livestock or insects. Section 133 prohibits funds from being used to amend, revise, or otherwise modify safety fitness determination regulations until certain conditions are met. Section 134 clarifies the preemption of certain state and local laws and regulations by federal laws and regulations related to motor carriers, and makes such preemption retroactive to the date of enactment of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305). National Highway Traffic Safety Administration The National Highway Traffic Safety Administration (NHTSA) was established in March of 1970 to administer motor vehicle and highway safety programs. It was the successor agency to the National Highway Safety Bureau, which was housed in the Federal Highway Administration. NHTSA's mission is to save lives, prevent injuries, and reduce economic costs due to road traffic crashes through education, research, safety standards, and enforcement activity. To accomplish these goals, NHTSA establishes and enforces safety performance standards for motor vehicles and motor vehicle equipment, investigates safety defects in motor vehicles, and conducts research on driver behavior and traffic safety. NHTSA provides grants and technical assistance to state and local governments to enable them to conduct effective local highway safety programs. Together with state and local partners, NHTSA works to reduce the threat of drunk, impaired, and distracted drivers, and to promote policies and devices with demonstrated safety benefits including helmets, child safety seats, airbags, and graduated licenses. NHTSA establishes and ensures compliance with fuel economy standards, investigates odometer fraud, establishes and enforces vehicle anti-theft regulations, and provides consumer information on a variety of motor vehicle safety topics. COMMITTEE RECOMMENDATION The Committee recommends $926,704,000, which is $15,357,000 above the fiscal year 2017 enacted level and $27,565,000 above the budget request. The following table summarizes the Committee's recommendations: ---------------------------------------------------------------------------------------------------------------- Committee 2017 enacted 2018 request recommendation ---------------------------------------------------------------------------------------------------------------- Operations and research (general fund and highway trust fund).. $325,975,000 $301,510,000 $329,075,000 Highway traffic safety grants (highway trust fund)............. 585,372,000 597,629,000 597,629,000 Total...................................................... 911,347,000 899,139,000 926,704,000 ---------------------------------------------------------------------------------------------------------------- The Committee recommends funding levels that provide NHTSA with sufficient resources to continue its critical work improving the safety of passenger travel on the nation's highway system. OPERATIONS AND RESEARCH (LIQUIDATION OF CONTRACT AUTHORIZATION) (LIMITATION ON OBLIGATIONS) (HIGHWAY TRUST FUND) ---------------------------------------------------------------------------------------------------------------- (Highway trust (General fund) fund) Total ---------------------------------------------------------------------------------------------------------------- Appropriation, fiscal year 2017.............................. $180,075,000 $145,900,000 $325,975,000 Budget request, fiscal year 2018............................. 152,510,000 149,000,000 301,510,000 Recommended in the bill...................................... 180,075,000 149,000,000 329,075,000 Bill compared to: Appropriation, fiscal year 2017.......................... - - - +3,100,000 +3,100,000 Budget request, fiscal year 2018......................... +27,565,000 - - - +27,565,000 ---------------------------------------------------------------------------------------------------------------- The operations and research appropriations support research, demonstrations, technical assistance, and national leadership for highway safety programs. Many of these programs are conducted in partnership with state and local governments, the private sector, universities, research units, and various safety associations and organizations. These programs address alcohol and drug countermeasures, vehicle occupant protection, traffic law enforcement, emergency medical and trauma care systems, traffic records and licensing, traffic safety evaluations, motorcycle safety, pedestrian and bicycle safety, pupil transportation, distracted and drowsy driving, young and older driver safety programs, development of improved accident investigation procedures, and emerging technology and cybersecurity research including automated vehicles. COMMITTEE RECOMMENDATION The Committee recommends $329,075,000, which is $3,100,000 above the fiscal year 2017 enacted level and $27,565,000 above the budget request. Of this total, $180,075,000 is from the general fund for operations and vehicle safety research, and $149,000,000 is from the highway trust fund for operations and behavioral highway safety research. The recommendation includes amounts adequate to support prior year increases for safety defects investigation and vehicle electronics and emerging technologies. Automated vehicles.--The auto industry is in the midst of a seismic technological shift that will revolutionize the transportation of people and goods in our lifetime. Connected and self-driving cars have the potential to dramatically reduce the more than 40,000 lives lost on our roads and highways every year and fundamentally transform transportation networks. In addition to reducing roadway fatalities, automated vehicle (AV) technology will drastically improve mobility options for the elderly, persons with disabilities, and other individuals who cannot obtain a drivers' license. The Committee also believes that it is critical the United States lead in the development and use of this life-saving technology, which is also being pursued by many countries around the world. The Committee recognizes the rapid pace at which AV technology is developing, and is interested in validating the safety of the new technology that would operate on our nation's roads. The Committee is aware of the Department of Transportation's January 19, 2017 designation of ten AV proving ground pilot sites. The intent was to form an initial network of proving grounds focused on the advancement of AV technology. The Committee encourages DOT to support the development of these ten proving grounds and to promote the creation and sharing of best practices for the safe conduct of testing and operations, which will accelerate the pace of safe AV deployment. Several, highly-qualified sites were not included in the initial designation. Without a comprehensive network of experienced proving sites, the goal of establishing a community of practice to develop and share information around safe testing, demonstration, and deployment of AV technology may take much longer. Therefore, the Committee directs the Secretary to evaluate whether DOT should designate additional proving grounds among those that responded to and met the criteria listed in the Department's December 19, 2016 solicitation of proposals for designation and report to the Committee within 60 days after enactment of this Act on its findings. The Committee continues to be concerned that the Department not create regulatory burdens to the safe development of AV technology and directs the Department to implement a streamlined application process for 49 CFR Part 555 exemption requests and grant or deny a request for exemption within 60 days. Furthermore, the Committee is encouraged by the Department's commitment to respond to interpretation requests of existing federal motor vehicle safety standards within an expedited timeline and encourages the Department to provide these responses within 30 days of submittal. While there is great promise with the development of advanced driver automation systems (ADAS) technologies, including fully automated vehicles, there are many potentially unexpected consequences in driver cognition and the ultimate safety and success of the automation systems. The Committee is concerned that insufficient research has been conducted around the impact ADAS technologies will have on driver cognition, specifically driver fatigue and situational awareness. The Committee directs NHTSA to work collaboratively with industry and academia to conduct research on the relationship between driver automation technologies and cognitive response. Since several automation systems with near-term deployment opportunity are focused on commercial vehicles, the committee recommends this research focus initially on the trucking industry. The transition to self-driving vehicles will take place over many years during which these vehicles will interact, and sometimes collide with, vehicles driven by humans. Our legal system has a vast amount of experience apportioning liability after auto accidents but that task could be made more difficult should access to data from AVs involved in accidents be limited. Automakers in both the United States and Europe have already taken some preliminary steps that evidence a desire to limit vehicle data access to third parties such as insurers. Vehicle data from highly automated vehicles must be made available to the parties involved, their insurers, and authorized representatives on reasonable terms. Failure to make that access available could delay compensation to accident victims and increase automobile insurance costs. The Committee urges the Department of Transportation to consider establishing guidelines that allow reasonable access to data for the parties that need such access. Highway-rail grade crossing safety.--NHTSA has vast experience in addressing driver behaviors that threaten highway safety. Highway-rail grade crossings pose a major risk to highway safety and are an ongoing challenge for the safety community. Eliminating the most hazardous grade crossings will help reduce the risk to automobile and train passengers. The Committee urges NHTSA to work with states to target resources toward the most hazardous crossings. Additionally, increased public awareness will help educate drivers on the dangers of entering active highway-rail grade crossings. Therefore, the Committee recommends that up to $6,500,000 be used to support a high visibility enforcement paid-media campaign in the area of highway-rail grade crossing safety. The Committee directs NHTSA to coordinate these resources with the media on other highway safety campaigns, and to work collaboratively with the Federal Railroad Administration on the campaign's message development. Crashworthiness research.--The Committee recognizes the importance that lightweight plastics and polymer composites play in meeting consumer demand for innovative vehicles, increased fuel efficiency, and improved automotive structural safety. At the same time, the Committee recognizes there has been an increase in vehicle crashes, injuries, and fatalities that could be mitigated in part by the safety capabilities of these lightweight materials. NHTSA is encouraged to prioritize research of updates to countermeasures in its frontal, side, rollover, front seatbacks and lower interior impacts for children and small adults, as well as pedestrian crashworthiness research, with an emphasis on vehicle light- weighting. NHTSA should leverage existing research being done by the Department of Transportation, the Department of Energy, and industry stakeholders in its development of safety-centered approaches for future lightweight automotive design. Truck underride safety research.--The Committee notes that NHTSA's proposed rulemaking in December 2015 to update truck rear impact guard requirements cited 362 annual fatalities associated with light vehicle crashes into the rear of trucks. The Committee encourages NHTSA to move forward with this rulemaking and continue working with relevant experts and stakeholders, including researchers, engineers, safety advocates, and the trucking industry, to facilitate the deployment and adoption of rear and side underride protection devices. Child hyperthermia prevention.--In prior years, the Committee has recognized the severe child safety crisis involving children left alone in motor vehicles that die of hyperthermia. The Committee has favorably cited the awareness programs conducted by NHTSA. In the 19 years since records have been maintained, more than 700 children, mostly three years old or younger, have died in this tragic way. While progress was made in 2014 and 2015, there were 39 deaths in 2016, and several children have died in early 2017. The Committee therefore directs NHTSA to continue its public education and outreach efforts on child hyperthermia prevention through a public call to action encouraging public messaging and the involvement of a broad coalition of organizations, government agencies, medical professionals, and others who regularly interact with parents and the public. The campaign should focus on parents and caregivers who transport children and encourage bystanders to take action when they see children left alone in cars. We urge that the campaign commence earlier in the year compared to prior campaigns. In addition to public awareness, the Committee urges NHTSA to continue to pursue technological solutions in coordination with industry that can serve as a reminder to parents to remove children from the rear seat prior to leaving their vehicle. HIGHWAY TRAFFIC SAFETY GRANTS (LIQUIDATION OF CONTRACT AUTHORIZATION) (LIMITATION ON OBLIGATIONS) (HIGHWAY TRUST FUND) ------------------------------------------------------------------------ Liquidation of Contract Limitation on Authorization obligation ------------------------------------------------------------------------ Appropriation, fiscal year 2017. $585,372,000 ($585,372,000) Budget request, fiscal year 2018 597,629,000 (597,629,000) Recommended in the bill......... 597,629,000 - - - Bill compared with: Appropriation, fiscal year 12,257,000 ( - - -) 2017........................... Budget request, fiscal year ( - - -) ( - - -) 2018........................... ------------------------------------------------------------------------ The highway traffic safety state grant programs authorized under the FAST Act include: Highway Safety Programs, the National Priority Safety Program, and the High Visibility Enforcement Program. These grant programs provide resources to states for highway safety programs that are data-driven and that meet states' most pressing highway safety problems. They are a critical asset in reducing highway traffic fatalities and injuries. COMMITTEE RECOMMENDATION The Committee recommends $597,629,000 in liquidating cash from the highway trust fund to pay outstanding obligations of the highway safety grant programs at the levels provided in this Act and prior appropriations Acts. The Committee also recommends limiting the obligations from the highway trust fund in fiscal year 2018 for the highway traffic safety grants programs to $597,629,000. These levels are $12,257,000 above the fiscal year 2017 enacted level and the same as the budget request. The recommendation includes $5,494,000 for the driver alcohol detection system for safety (DADSS) program, which funds in-vehicle alcohol detection device research. The Committee recommends the following funding allocations for grant programs: Highway safety programs (section 402)................. ($261,200,000) National priority safety programs (section 405)....... (280,200,000) High visibility enforcement program................... (29,900,000) Administrative expenses............................... (26,329,000) Drug recognition expert and advanced roadside impaired driving enforcement training.--The Committee is concerned about increasing rates of impaired driving, especially as additional states consider and adopt measures to decriminalize marijuana. The use of marijuana, other illicit drugs, and certain prescription drugs before or while driving is a critical public safety issue and the Committee has previously instructed the agency to conduct a study of marijuana-impaired driving to fulfill the requirement of the FAST Act. The Committee recognizes the importance of impaired driving countermeasures at the community level in protecting public safety, and encourages NHTSA to expand its efforts with law enforcement to increase awareness and use of Drug Recognition Expert (DRE) and Advanced Roadside Impaired Driving Enforcement (ARIDE) training particularly in those states that have adopted recreational or medicinal marijuana laws. The Committee urges NHTSA to expand its efforts to increase awareness and use among law enforcement of DRE and ARIDE training. Driver alcohol detection system for safety (DADSS).--The FAST Act includes a total of $21,248,000 through fiscal year 2020 for the ongoing advanced drunk driving detection technology program known as DADSS. The DADSS program is an ambitious public-private research effort to develop a publicly- acceptable and commercially-viable technology that will prevent a drunk driver (at or over .08 BAC) from operating a vehicle. Technology development progress to date was demonstrated at DOT headquarters in June 2015. The accompanying bill includes $5,494,000 for fiscal year 2018. In light of the significant life-saving potential of the program, approximately 7,000 lives annually, the Committee urges NHTSA to take steps to accelerate the program, including additional support from the auto industry partners in this activity. Safety promotional materials.--For the purpose of federal grants administered by NHTSA, safety equipment purchased for traffic safety educational trainings, such as child car seats, bicycle helmets and lights, and reflective vests, shall not be considered promotional materials or memorabilia. ADMINISTRATIVE PROVISIONS--NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION Section 140 provides limited funding for travel and related expenses associated with state management reviews and highway safety core competency development training. Section 141 exempts from the current fiscal year's obligation limitation any obligation authority that was made available in previous public laws. Section 142 prohibits funding for the national roadside survey. Section 143 prohibits funds from being used to mandate global positioning system tracking without providing full and appropriate consideration of privacy concerns under 5 U.S.C. Chapter 5, subchapter II. Federal Railroad Administration The Federal Railroad Administration (FRA) was established by the Department of Transportation Act, on October 15, 1966. The FRA plans, develops, and administers programs and regulations to promote the safe operation of freight and passenger rail transportation in the United States. The U.S. railroad system consists of over 650 railroads with 200,000 freight employees, 171,000 miles of track, and 1.35 million freight cars. In addition, the FRA continues to oversee grants to the National Railroad Passenger Corporation (Amtrak) with the goal of assisting Amtrak with improvements to its passenger service and physical infrastructure. SAFETY AND OPERATIONS Appropriation, fiscal year 2017....................... $218,298,000 Budget request, fiscal year 2018...................... 199,000,000 Recommended in the bill............................... 218,298,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +19,298,000 The safety and operations account provides funding for FRA's safety program activities related to passenger and freight railroads. Funding also supports salaries and expenses and other operating costs related to FRA staff and programs. COMMITTEE RECOMMENDATION The Committee recommends $218,298,000 for safety and operations, which is equal to the fiscal year 2017 enacted level and $19,298,000 above the budget request. Of the amount provided under this heading, $15,900,000 is available until expended. The recommended level fully funds personnel, and does not provide additional positions in fiscal year 2018. Railroad safety information system (RSIS).--The recommendation includes a total of $4,800,000 for RSIS, an increase of $500,000 from the fiscal year 2017 enacted level and $1,100,000 from the request. This funding level will increase the capabilities of FRA's principal repository of safety data, and will allow FRA to enforce safety regulations that have data collection and management requirements. The Committee directs FRA to develop a user-friendly front-end interface to access its data systems. Automated track inspection program (ATIP).--The Committee's recommendation includes $16,500,000 for ATIP, an increase of $960,000 from the fiscal year 2017 enacted level, and $7,023,000 from the request. ATIP uses track geometry measurement vehicles to automatically measure track conditions. These vehicles supplement the work of FRA's inspectors to ensure railroads are compliant with the FRA Track Safety Standards. The funding will allow inspection of additional miles of track. Safe transportation of energy products.--The Committee includes funding for FRA's safe transport of energy products programs. The program includes funding for crude oil safety inspectors, safety route managers and tank car quality assurance specialists, tank car research and increased mileage of ATIP on routes that carry energy produces. Positive train control (PTC).--The Committee provides $6,600,000 for the PTC support program, equal to the fiscal year 2017 enacted level, and $3,600,000 above the request. This funding level reflects that FRA needs to review 30 additional PTC plans. Confidential close call (C3RS).--C3RS provides insights about precursor behavior that may lead to human-factor-caused accidents, which account for about one-third of rail accidents. The recommendation includes $3,500,000, $600,000 above the fiscal year 2017 enacted level and the request. The increase will allow FRA to increase the number of reports it analyzes to identify trends. Currently, eight railroads and 17 Peer Review Teams are participating, and several additional railroads are considering participation in the C3RS program. The Committee directs FRA to explore ways to increase participation with railroad employees, whether or not the company has signed an IMOU. Increased participation will make it more difficult to determine which railroad was subject to a report. This confidentiality concern has prevented NASA from making the C3RS data accessible to FRA and the public, preventing further analysis and use in enforcement and outreach initiatives. Further, the Committee directs FRA to explore a model that would allow the public sector to pay into the program, and provide an update on these initiatives 120 days after enactment of this Act. Trespasser Prevention.--Trespasser fatalities (not including suicides) represent nearly half of all rail operation related fatalities in the U.S., and the numbers are increasing. Since 2011 trespasser fatalities have increased by 23 percent and trespasser injuries have increased by 33 percent. Trespasser accidents take a high toll on the individuals who are killed or injured, their families, and communities, as well as on the railroad employees who witness these tragic events first hand. Some engineers and conductors involved in trespasser accidents are so affected by these tragedies that they are unable to continue their railroad careers. Therefore, the Committee directs FRA to identify and study the causal factors that lead to trespassing incidents on railroad property and develop a national strategy to prevent trespasser accidents, including milestones, timelines, and metrics to define success. The Committee directs FRA to submit the trespassing prevention strategy to the House and Senate Committees on Appropriation no later than August 1, 2018. The Committee expects FRA to implement the national strategy to prevent trespasser accidents within the recommended timelines. Bridge support program.--FRA developed a bridge inventory database and a bridge management plan review risk model. The Committee provides $600,000, an increase of $400,000 above the request, to further modify the risk model and update the bridge inventory. The Committee looks forward to receiving studies on standards and protocols to facilitate a passenger and freight rail line at international land crossings between the United States and Mexico; and efforts to harmonize regulations and address congestion at international rail crossings per the recommendations made in the recent GAO report. RAILROAD RESEARCH AND DEVELOPMENT Appropriation, fiscal year 2017....................... $40,100,000 Budget request, fiscal year 2018...................... 39,100,000 Recommended in the bill............................... 40,100,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +1,000,000 The railroad research and development program provides science and technology support for FRA's policy and regulatory efforts. The program's objectives are to reduce the frequency and severity of railroad accidents through scientific advancement, and to support technological innovations in conventional and high speed railroads. COMMITTEE RECOMMENDATION The Committee recommends an appropriation of $40,100,000 for railroad research and development, which is equal to the fiscal year 2017 enacted level and $1,000,000 more than the budget request. Safe transportation of energy products (STEP).--The Committee provides $2,000,000 for FRA to research and mitigate risks associated with frequent and large volume rail transport of crude oil. Short-line safety.--The Committee's recommendation includes $2,000,000 to improve safety practices and safety training for Class II and Class III freight railroads. This supports FRA's initiative to partner with short-line and regional railroads to build a stronger, sustainable safety culture in this segment of the rail industry. The initiative will support safety compliance assessments and training on short lines that transport crude oil. Intelligent railroad systems.--The Committee's recommendation includes $1,000,000 to facilitate research with universities on intelligent railroad systems. System safety and risk reduction programs.--The Committee recognizes that continued investments in critical rail infrastructure programs will make our rails, railcars, and trains safer for all who use them. Therefore, the Committee urges FRA to prioritize investments in the development of technologies designed to verify the functional performance of complex electronic systems such as: positive train control, electronically controlled pneumatic brakes, automated train control, passenger door control, train communications, train environmental control, and railcar signs. In addition, the FRA should work with industry to develop standardized performance verification and diagnostics for such systems. RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM The Railroad Rehabilitation and Improvement Financing (RRIF) program was established by Public Law 109 178 to provide direct loans and loan guarantees to state and local governments, government-sponsored entities, and railroads. Credit assistance under the program may be used for rehabilitating or developing rail equipment and facilities. No Federal appropriation is required to implement this program. The Committee continues bill language specifying that no new direct loans or loan guarantee commitments may be made using Federal funds for the payment of any credit premium amount during fiscal year 2018, except for Federal funds awarded in accordance with section 3028(c) of Public Law 114- 94. The Committee directs GAO to report on the efficacy of and implications to the RRIF program and communities of allowing Federal funds to serve as the credit risk premium for RRIF loans, and what type of Federal funds would likely be used for this purpose. FEDERAL-STATE PARTNERSHIP FOR STATE OF GOOD REPAIR Appropriation, fiscal year 2017....................... $25,000,000 Budget request, fiscal year 2018...................... 25,945,000 Recommended in the bill............................... 500,000,000 Bill compared with: Appropriation, fiscal year 2017................... +475,000,000 Budget request, fiscal year 2018.................. +474,055,000 The FAST Act authorized the federal-state partnership for state of good repair under section 11302. The purpose of these grants is to reduce the state of good repair backlog on publically-owned or Amtrak-owned infrastructure, equipment, and facilities. Eligible activities include capital projects to (1) replace existing assets in-kind or with assets that increase capacity or service levels, (2) ensure that service can be maintained while existing assets are brought into a state of good repair, (3) bring existing assets into a state of good repair. COMMITTEE RECOMMENDATION The Committee recommends $500,000,000 for the federal-state partnership for state of good repair grants, $475,000,000 more than the fiscal year 2017 enacted level and $474,055,000 more than the budget request. According to the NEC Commission's most recent capital investment plan, the Northeast Corridor has a $38,000,000,000 state of good repair backlog covering the various assets of the NEC which must be replaced and modernized simply to sustain current rail services. This backlog must be addressed as soon as possible, and it is critical that the FRA help advance projects that are ready to utilize federal investment. Therefore, the Committee directs FRA to first give preference to eligible projects that have complete environmental impact statements and final design or that address major critical assets which have conditions that pose a substantial risk now or in the future to the reliability of train service before considering other factors. CONSOLIDATED RAIL INFRASTRUCTURE AND SAFETY IMPROVEMENTS Appropriation, fiscal year 2017....................... $68,000,000 Budget request, fiscal year 2018...................... 25,000,000 Recommended in the bill............................... 25,000,000 Bill compared with: Appropriation, fiscal year 2017................... -43,000,000 Budget request, fiscal year 2018.................. - - - Authorized under Section 11301 of the FAST Act, the purpose of the consolidated rail infrastructure and safety improvement (CRISI) grants is to improve the safety, efficiency, and reliability of passenger and freight rail systems. Eligible activities include a wide range of capital, regional and corridor planning, environmental analyses, research, workforce development, and training projects. COMMITTEE RECOMMENDATION The Committee recommends $25,000,000 for CRISI grants, $43,000,000 less than the fiscal year 2017 enacted level and equal to the budget request. The Committee recognizes that communities with high-volume international inland ports on the U.S.-Mexico border face unique transportation challenges caused by international trade. The Committee encourages the agency to consider the impacts of these freight movements, including traffic, highway-rail grade crossings, congestion and safety when awarding grants. The Committee is encouraged by the efforts of commuter railroads to develop and implement PTC. While the technological and financial hurdles can be formidable, PTC is a lifesaving technology that enjoys broad support across the nation. The Committee encourages the Department to make certification a priority and to provide the necessary technical assistance to commuter railroads as they move toward full implementation. GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION (AMTRAK) Amtrak, created as a for-profit business in 1970, operates trains on over 20,000 miles of track owned by freight railroad carries, and over 654 miles of its own track, most of which is on the Northeast Corridor (NEC) from Washington, D.C., to Boston, Massachusetts. Amtrak operates both electrified trains, which can achieve speeds of up to 150 mph on the highest quality track on the NEC, and diesel locomotives, which currently can achieve speeds between 74 to 110 miles per hour. The FAST Act authorizes funds for Amtrak through 2020 under a new structure that includes two lines of businesses, the Northeast Corridor (NEC) that runs from Boston to Washington, D.C.; and the National Network, which encompasses Amtrak's state-supported and long-distance routes, as well as other non- NEC activities. The account structure, when combined with new planning and reporting requirements on Amtrak's business lines and asset categories, significantly improves the transparency of Amtrak funding and the delivery of its services. The Committee recommends $1,428,000,000 for Amtrak, $67,000,000 below the fiscal year 2017 enacted level and $668,000,000 above the request. The Committee provides funding consistent with the authorized structure. Congressional budget justification.--The Committee appreciates the level of detail in the fiscal year 2018 budget justification and directs Amtrak to submit justification with a similar level of detail for fiscal year 2019. NORTHEAST CORRIDOR GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION Appropriation, fiscal year 2017....................... $328,000,000 Budget request, fiscal year 2018...................... 235,000,000 Recommended in the bill............................... 328,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. + 93,000,000 The Committee recommends $328,000,000 for grants to the Northeast Corridor for operating and capital purposes, which is equal to the fiscal year 2017 enacted level and $93,000,000 above the request. In addition to these funds, the Northeast Corridor retains its operating profits for use on the corridor. This funding level provides $5,000,000 to the Northeast Corridor Commission established under section 24905 of title 49, United States Code. The Committee directs Amtrak to prioritize eligible projects that have complete environmental impact statements and final design or that address major critical assets which have conditions that pose a substantial risk now or in the future to the reliability of train service. NATIONAL NETWORK GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION Appropriation, fiscal year 2017....................... $1,167,000,000 Budget request, fiscal year 2018...................... 525,000,000 Recommended in the bill............................... 1,100,000,000 Bill compared with: Appropriation, fiscal year 2017................... -67,000,000 Budget request, fiscal year 2018.................. + 575,000,000 The Committee recommends $1,100,000,000 for national network grants to Amtrak, which is $67,000,000 below the fiscal year 2017 enacted level and $575,000,000 above the request. These funds subsidize operating and capital losses on all of Amtrak's existing long-distance routes, state-supported routes, as well as other non-NEC activities. The FAST Act allows Amtrak to transfer operating profits from the Northeast Corridor to this appropriation under certain conditions. ADMINISTRATIVE PROVISIONS Section 150. The Committee continues a provision that limits overtime to $35,000 per employee, allows Amtrak's president to waive this restriction for specific employees for safety or operational efficiency reasons, and requires notification to the House and Senate Committees on Appropriations within 30 days of granting such waivers. It also requires Amtrak to submit an annual report summarizing overtime payments incurred by the Corporation for calendar year 2017 and the prior three years. The summary shall include total number of employees that received waivers, total overtime payments paid to employees receiving waivers for each month for 2017 and the prior three calendar years. Section 151. The Committee includes a provision prohibiting funds from being used for high speed rail in California. Section 152. The Committee includes a provision prohibiting the Surface Transportation Board from taking action with respect to the construction of high speed rail in California unless the Board has jurisdiction over the entire project. 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) ---------------------------------------------------------------------------------------------------------------- Liquidation of contract Limitation on authority obligations ---------------------------------------------------------------------------------------------------------------- Appropriation, fiscal year 2017............................... $10,800,000,000 $9,733,706,043 Budget request, fiscal year 2018.............................. 10,300,000,000 9,733,353,407 Recommended in the bill....................................... 10,300,000,000 9,733,353,407 Bill compared with: Appropriation, fiscal year 2017........................... -500,000,000 -352,636 Budget request, fiscal year 2018.......................... - - - - - - ---------------------------------------------------------------------------------------------------------------- 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) ---------------------------------------------------------------------------------------------------------------- (Underground (Oil spill natural gas (Pipeline liability trust storage Total Safety Fund) fund) facility safety fund) ---------------------------------------------------------------------------------------------------------------- Appropriation, fiscal year 2017............. $128,000,000 $20,288,000 $8,000,000 $156,288,000 Budget request, fiscal year 2018............ 124,263,000 22,081,000 $8,000,000 154,344,000 Recommended in the bill..................... 131,000,000 23,000,000 $8,000,000 162,000,000 Bill compared to: Appropriation, fiscal year 2017......... +3,000,000 +2,712,000 - - - +5,712,000 Budget request, fiscal year 2018........ +6,737,000 +919,000 - - - +7,656,000 ---------------------------------------------------------------------------------------------------------------- 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. COMMUNITY PLANNING AND DEVELOPMENT Appropriation, fiscal year 2017....................... $110,000,000 Budget request, fiscal year 2018...................... 107,554,000 Recommended in the bill............................... 107,554,000 Bill compared with: Appropriation, fiscal year 2017................... -2,446,000 Budget request, fiscal year 2018.................. - - - The Office of Community Planning and Development (CPD) manages a wide range of community development, affordable housing, homeless, special needs, disaster recovery, and economic stimulus and mobility programs that support communities, low-income households, and others requiring assistance. The primary means toward this end is the development of partnerships among all levels of government and the private sector. This Office is responsible for the effective administration of Community Development Block Grants (CDBG), the Home Investment Partnership (HOME), Homeless Assistance Grants, and other HUD community development programs. COMMITTEE RECOMMENDATION The Committee recommends $107,554,000 for this account, which is $2,446,000 below the level enacted in fiscal year 2017, and equal to the budget request. HOUSING Appropriation, fiscal year 2017....................... $392,000,000 Budget request, fiscal year 2018...................... 365,829,000 Recommended in the bill............................... 392,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +26,171,000 The Office of Housing provides vital public services through its nationally administered programs, oversees the Federal Housing Administration (FHA), the largest mortgage insurer in the world, and regulates housing industry business. In addition to Executive Direction and supportive offices that work on finance, budget, and operations, there are five program offices within the Office of Housing: 1) Office of Multifamily Housing programs; 2) Office of Healthcare programs; 3) Office of Risk Management and Regulatory Affairs; 4) Office of Single Family Housing programs; and 5) Office of Housing Counseling. COMMITTEE RECOMMENDATION The Committee recommends $392,000,000 for this account, which is equal to the fiscal year 2017 enacted level, and $26,171,000 above the budget request. The Committee directs the Department to perform the activities carried out in prior years by the performance-based contract administrators and provides funding for these purposes within the office. POLICY DEVELOPMENT AND RESEARCH Appropriation, fiscal year 2017....................... $24,000,000 Budget request, fiscal year 2018...................... 24,065,000 Recommended in the bill............................... 24,065,000 Bill compared with: Appropriation, fiscal year 2017................... +65,000 Budget request, fiscal year 2018.................. - - - The Office of Policy Development and Research (PD&R) directs the Department's annual research agenda to support the research and evaluation of housing and other departmental initiatives to improve HUD's effectiveness and operational efficiencies. Research proposals are determined through consultation with senior staff from each HUD program office, the Office of Management and Budget, and Congress. COMMITTEE RECOMMENDATION The Committee recommends $24,065,000 for this account, which is $65,000 above the level enacted in fiscal year 2017 and equal to the budget request. FAIR HOUSING AND EQUAL OPPORTUNITY Appropriation, fiscal year 2017....................... $72,000,000 Budget request, fiscal year 2018...................... 69,808,000 Recommended in the bill............................... 69,808,000 Bill compared with: Appropriation, fiscal year 2017................... -2,192,000 Budget request, fiscal year 2018.................. - - - The Office of Fair Housing and Equal Opportunity (FHEO) is responsible for developing policies and guidance, and for providing technical support for enforcement of the Fair Housing Act and the civil rights statutes. FHEO serves as the central point for the formulation, clearance and dissemination of policies, intra-departmental clearances, and public information related to fair housing issues. FHEO receives, investigates, conciliates and recommends the issuance of charges of discrimination and determinations of non-compliance for complaints filed under Title VIII and other civil rights authorities. Additionally, FHEO conducts civil rights compliance reviews and compliance reviews under Section 3. COMMITTEE RECOMMENDATION The Committee recommends $69,808,000 for this account, which is $2,192,000 below the level enacted in fiscal year 2017 and equal to the budget request. OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES Appropriation, fiscal year 2017....................... $9,353,000 Budget request, fiscal year 2018...................... 7,600,000 Recommended in the bill............................... 7,600,000 Bill compared with: Appropriation, fiscal year 2017................... -1,753,000 Budget request, fiscal year 2018.................. - - - The Office of Lead Hazard Control and Healthy Homes (OLHCHH) is directly responsible for the administration of the Lead-Based Paint Hazard Reduction program authorized by Title X of the Housing and Community Development Act of 1992. The office also addresses multiple housing-related hazards affecting the health of residents, particularly children. The office develops lead-based paint regulations, guidelines, and policies applicable to HUD programs, and enforces the Lead Disclosure Rule issued under Title X. The mission of the OLHCHH is to provide safe and healthy homes for at-risk families and children by promoting and funding housing repairs to address conditions that threaten the health of residents. COMMITTEE RECOMMENDATION The Committee recommends $7,600,000 for this account, which is $1,753,000 below the fiscal year 2017 enacted level and equal to the budget request. WORKING CAPITAL FUND (INCLUDING TRANSFER OF FUNDS) The Department of Housing and Urban Development's Working Capital Fund (WCF) was established by the Consolidated Appropriations Act, 2016 to consolidate by transfer resources that support certain centrally performed administrative functions. The purpose of the WCF is to promote economy, efficiency, and accountability among the various HUD offices that rely on these functions. COMMITTEE RECOMMENDATION The Committee recommendation provides the Secretary with the authority to transfer amounts provided in this title for salaries and expenses, except those for the Office of Inspector General, to this account for the purpose of funding centralized activities. The Department is required to centralize and fund from this account any shared service agreements executed between HUD and another federal agency. For fiscal year 2018, the Department is permitted to centralize and fund from this account: financial management, procurement, travel, relocation, human resources, printing, records management, space renovation, furniture, supply services, and other shared services as decided by the Secretary. The Committee expects that, prior to exercising discretion to centrally fund an activity, the Secretary shall have established transparent and reliable unit cost accounting for the offices and agencies of the Department that use the activity, and shall have adequately trained staff within each affected office and agency on resource planning and accounting processes associated with the centralization of funds to this account. Further, prior to centralizing either furniture or space renovation, the Committee directs the Department to deliver a comprehensive, multi-year real property improvement plan that details all planned space realignments, capital improvements, maintenance requirements, and other costs associated with carrying out HUD's most recent strategic plan, including any elements of the General Service Administration (GSA) study on the Weaver Building that HUD plans to include as part of its Reimbursable Work Agreement with GSA. Prior to exercising its authority to transfer funds for activities beyond what is required for shared service agreements, the Committee expects HUD to establish a clear execution plan for centralizing the additional activities, and to transmit that plan to the House and Senate Committees on Appropriations 30 days prior to transferring such funds into the WCF. HUD shall include in its annual operating plan a detailed outline of its plans for transferring budgetary resources to the WCF in fiscal year 2018. Public and Indian Housing TENANT-BASED RENTAL ASSISTANCE (INCLUDING TRANSFER OF FUNDS) Appropriation, fiscal year 2017....................... $20,292,000,000 Budget request, fiscal year 2018...................... 19,317,900,000 Recommended in the bill............................... 20,486,725,000 Bill compared with: Appropriation, fiscal year 2017................... +194,725,000 Budget request, fiscal year 2018.................. +1,168,825,000 In fiscal year 2005, the Housing Certificate Fund was separated into two new accounts: Tenant-Based Rental Assistance and Project-Based Rental Assistance. This account administers the tenant-based Section 8 rental assistance program otherwise known as the Housing Choice Voucher program. COMMITTEE RECOMMENDATION The Committee recommends $20,486,725,000 for tenant-based rental assistance, which is $194,725,000 above the fiscal year 2017 enacted level and $1,168,825,000 above the budget request. Consistent with the budget request, the Committee continues the advance of $4,000,000,000 of the funds appropriated under this heading for Section 8 programs to October 1, 2018. Voucher renewals.--The Committee provides $18,709,725,000 for the renewal of tenant-based vouchers. This level is $354,725,000 above the fiscal year 2017 enacted level and $1,125,899,000 above the budget request. The Committee directs the Department to monitor and report to the House and Senate Committees on Appropriations each quarter on the trends in Section 8 subsidies and to report on the required program alterations due to changes in rent or changes in tenant income. Veterans affairs supportive housing (VASH).--The Committee provides no less than $577,000,000 within the voucher renewal appropriation to renew over 90,000 eligible VASH vouchers and to continue the effort to eliminate homelessness among our nation's veterans. Since 2008, the Committee has provided more than $500,000,000 in targeted funding to increase the number of VASH vouchers available to address veterans' homelessness and billions of dollars in additional funding have been made available to renew VASH vouchers. Communities across the country have been able to use these resources to make tremendous strides in addressing veterans' homelessness. According to the Department of Veterans Administration, a number of diverse communities across the country have been able to announce an end to veteran homelessness. These successes are the result of hard work, and effective collaboration, and are aspirational for the rest of the country. However, since 2010, veterans' homelessness has only declined by 36 percent nationally. For this reason, the Committee directs the Department to use existing authority to recapture HUD-VASH voucher assistance from Public Housing Authorities (PHAs) that voluntarily declare that they no longer have a need for that assistance or have mismanaged their allotted vouchers, and to reallocate vouchers to PHAs with an identified need. The Committee expects HUD to expedite this process. The Committee encourages the Department to prioritize, as part of this reallocation, PHAs that project- base a portion of their HUD-VASH vouchers in high-cost areas. The Committee directs the agency to report to Congress on its plan to implement this section within 120 days of enactment of this Act. Vouchers for homeless native american veterans.--The Committee provides $7,000,000 for renewal of vouchers for Native American veterans who are homeless or at risk of homelessness living on or near a reservation, or other Indian areas. This program was first funded in fiscal year 2015, and because of the unique nature of the program, a separate renewal line is required. These resources are in addition to VASH appropriations included within voucher renewal funding. Homeless veterans on U.S.-Mexico border.--The Committee notes that there are many homeless veterans living on the U.S.- Mexico border, many of whom have not historically been counted in the point-in-time homeless survey. The Committee directs HUD to take action to ensure that HUD-VASH vouchers are made available to this unique population. The Committee further directs HUD to develop strategies and recommendations for addressing and reducing veteran homelessness on the U.S.-Mexico border. HUD-VASH eligibility.--The Committee notes that there are many homeless individuals who previously served in the armed forces but are not considered eligible veterans for the purpose of obtaining VASH assistance. The Committee directs HUD to develop strategies and recommendations to better identify this specific subpopulation and reduce instances of homelessness among them by utilizing existing HUD resources. Tenant protection.--The Committee provides $60,000,000 for tenant protection vouchers, which is $50,000,000 below the fiscal year 2017 enacted level and the same as the budget request. Administrative fees.--The Committee provides $1,550,000,000 for allocations to Public Housing Authorities (PHAs) to conduct activities associated with placing and maintaining individuals under Section 8 assistance. This amount is $100,000,000 below the fiscal year 2017 enacted level and the same as the budget request. Sec. 811 mainstream vouchers.--The Committee provides $150,000,000 for Section 811 tenant-based subsidies. This level is $30,000,000 above the fiscal year 2017 enacted level and $42,926,000 above the budget request. These vouchers serve non- elderly persons with disabilities and the Committee prioritizes additional funding in support of this especially vulnerable population. The Committee directs HUD to issue guidance to the housing agencies administering these vouchers to continue to serve people with disabilities upon turnover. Public housing authority modernization.--The Committee provides $10,000,000 for allocations to PHAs to modernize information technology systems that manage program and funding data. The Committee expects HUD to prioritize funding to projects that automate business processes and thereby lower PHA administrative costs. PHA notification.--The Committee continues in bill language the direction to the Department to communicate to each PHA, within 60 days of enactment of this Act, the amount that will be made available to each PHA for fiscal year 2018. The amount provided in this account is the only source of federal funds that may be used to renew tenant-based vouchers. The amounts appropriated here may not be augmented from any other source. Public housing assessment system.--The Committee directs HUD to study and report back to the Committee on potential changes to the public housing assessment system for PHAs that operate 550 or fewer public housing units and housing choice vouchers combined by taking into consideration physical inspections and an annual financial assessment based on current assets and liabilities. The Department shall deliver a report to the House and Senate Committees on Appropriations of its findings within 60 days of enactment of this Act. The Committee remains interested in ways to reduce onerous regulations for small public housing authorities. Unit cost inflation and PHA administrative burdens.--Nearly three-quarters of HUD's annual appropriations are devoted to the cost of renewing rent subsidies, and, without changes, rent subsidy inflation will consume more and more taxpayer resources just to support the same number of households. In addition to keeping pace with inflation, increased leasing and other factors have increased the overall number of units subsidized by annual appropriations by over 67,000 units (including vouchers and permanent supportive housing) from 2012 to 2016. The Committee supports efforts to reform HUD's subsidized housing programs to address per unit costs so that supporting subsidized units remains fiscally sustainable. The President's Budget proposes a series of statutory reforms intended to forward this goal. However, the vast majority of these proposals require changes in authorizing law that are beyond the Committee's jurisdiction. The recommendation encourages the Secretary to work expeditiously toward identifying a legislative reform package that is agreeable to both the Administration and the relevant committees of jurisdiction. In the meantime, the Committee directs the Secretary to identify and execute administrative and regulatory actions within HUD's existing authorities that will reduce administrative burdens on PHAs and free these state and local partners to devote more resources to serving residents rather than bureaucratic requirements. The Committee believes that several regulations and HUD policy requirements have been expanded beyond what is statutorily required. This expansion not only increases administrative cost per unit but in many instances undermines PHA ability to deliver safe and affordable housing stock to low-income families. Actions to be taken by HUD shall include but not be limited to waivers of and changes to regulatory provisions and policy guidelines related to (1) PHA administrative, planning, and reporting requirements, (2) audits including energy audits, (3) income verifications and re-certifications, and (4) program assessments. It is critical that these actions do not invalidate HUD's oversight requirements but rather alleviate administrative burdens by reforming policies and programs that have little to no operational benefit for PHAs or are outside their realm of responsibility and expertise. The following regulations are just a few examples of policies that appear ripe for reform: (1) PHA plan requirements, (2) environmental review requirements, and (3) energy and utility data collection requirements. Further, the magnitude of regulations issued by HUD coupled with the growing cost of serving assisted families puts small PHAs at a special disadvantage. In carrying out the above direction to reduce administrative burdens, the Secretary shall give special consideration to actions that will provide relief to PHAs that serve 550 or fewer public housing units and housing choice vouchers combined. While reducing administrative burdens is imperative, the Committee recognizes that HUD must strike a balance between administrative relief and responsible oversight. Therefore, when carrying out this directive, HUD shall safeguard its oversight responsibilities adequate to protect resident health and safety, taxpayer investment, and a safe and decent affordable housing stock. HUD shall deliver a report to the House and Senate Committees on Appropriations within 60 days of enactment of this Act that identifies what administrative relief actions it will carry out in fiscal year 2018, explains why remaining oversight safeguards will be adequate, and outlines the approximate timeline for HUD to execute all identified actions. Quality assurance of physical inspections.--The Committee is troubled by reports of deplorable living conditions found in some HUD-subsidized properties across the country. The scope of this issue spans geographic regions, highlights systemic problems, and calls into question the effectiveness of HUD oversight, and the Real Estate Assessment Center's inspections of HUD-assisted housing. The Committee encourages the Department to work with Congress on enforcement actions, including civil monetary penalties, that HUD can take to ensure PHAs and landlords maintain the physical quality of HUD- assisted units. Similarly, while the Committee is supportive of efforts to quickly issue tenant-protection vouchers, the issuance of these vouchers is a tacit acknowledgement that the Department has failed to ensure units are maintained as decent, safe and sanitary. Additionally, failure to maintain the physical condition of HUD-assisted properties results in a loss of critical affordable housing, and tenant protection vouchers are of questionable value to families that encounter a lack of affordable housing in their communities. The Committee directs the Department to solicit comments from stakeholders, including tenants, to identify ways the Department can improve its inspection protocols and oversight. The Committee will continue to closely monitor the Department's efforts and progress and directs the Department to submit to the House and Senate Committees on Appropriations within 60 days of enactment of this Act a report which includes a plan for how HUD could improve the inspection process and related protocols including quality assurance of inspections, a list of actions yet to be implemented, an update on the status of actions undertaken, and a timeline for how long it would take to complete all actions. HOUSING CERTIFICATE FUND (INCLUDING RESCISSIONS) The Housing Certificate Fund, until fiscal year 2005, provided funding for both the project-based and tenant-based components of the Section 8 program. Project-Based Rental Assistance and Tenant-Based Rental Assistance are now separately funded accounts. The Housing Certificate Fund retains balances from previous years' appropriations. COMMITTEE RECOMMENDATION Language is included to allow unobligated balances from specific accounts to renew or amend Project-Based Rental Assistance contracts. PUBLIC HOUSING CAPITAL FUND Appropriation, fiscal year 2017....................... $1,941,500,000 Budget request, fiscal year 2018...................... 628,000,000 Recommended in the bill............................... 1,850,000,000 Bill compared with: Appropriation, fiscal year 2017................... -91,500,000 Budget request, fiscal year 2018.................. +1,222,000,000 The public housing capital fund provides funding for public housing capital programs, including public housing development and modernization. Examples of capital modernization projects include replacing roofs and windows, improving common spaces, upgrading electrical and plumbing systems, and renovating the interior of an apartment. COMMITTEE RECOMMENDATION The Committee recommends $1,850,000,000 for the public housing capital fund, which is $91,500,000 below the fiscal year 2017 enacted level and $1,222,000,000 above the budget request. Within the amounts provided, the Committee directs that: --No more than $8,300,000 is directed to support the ongoing public housing financial and physical assessment activities of the Real Estate Assessment Center; --Up to $20,000,000 is made available for emergency capital needs, excluding Presidentially-declared disasters. The Committee includes language to ensure that funds are used only for repairs needed due to an unforeseen and unanticipated emergency event or natural disaster that occurs during fiscal year 2018, or for certain security measures; --$35,000,000 is for the resident opportunity and self- sufficiency program; and --$15,000,000 is provided for the Jobs-Plus program to improve employment opportunities and earnings of public housing residents. Physical needs assessment prohibition.--The Committee has included bill language prohibiting funds for HUD's Physical Needs Assessment (PNA) requirement for PHAs. Implementation of PNA requirements on PHAs unnecessarily increases administrative burdens on PHAs and appears to have no operational benefit for local housing programs. Public housing mortgage program.--In fiscal year 2017, Congress directed the Secretary to report to the House and Senate Committees on Appropriations on the utilization of the public housing mortgage program (PHMP), specifying existing program impediments, the Department's plan to address those impediments, and if the PHMP can be a useful tool to address public housing capital needs no later than 90 days after enactment. For fiscal year 2018, the Committee further directs the Secretary to create a research advisory committee which shall advise the Secretary with respect to policy and regulatory changes that would allow for increased use of the PHMP no later than 60 days after enactment of this bill. The advisory committee shall include program and research experts from the agency, industry groups, PHAs, private and multifamily mortgage lenders, and tenant advocacy groups. The research advisory committee shall collaborate on evidence-based best practices to ensure tenant protections while encouraging PHAs to leverage private capital for the modernization of their portfolio through the capital markets. The Secretary shall supply the House and Senate Committees on Appropriations with quarterly reports relating to the progress of the research advisory committee and shall submit a report to the House and Senate Committees on Appropriations no later than 180 days after enactment. PUBLIC HOUSING OPERATING FUND Appropriation, fiscal year 2017....................... $4,400,000,000 Budget request, fiscal year 2018...................... 3,900,000,000 Recommended in the bill............................... 4,400,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +500,000,000 The public housing operating fund subsidizes the costs associated with operating and maintaining public housing. This subsidy supplements funding received by public housing authorities from tenant rent contributions and other income. In accordance with section 9 of the United States Housing Act of 1937, as amended, funds are allocated by formula to public housing authorities for the following purposes: utility costs; anti-crime and anti-drug activities, including the costs of providing adequate security; routine maintenance cost; administrative costs; and general operating expenses. COMMITTEE RECOMMENDATION The Committee recommends $4,400,000,000 for the federal share of PHA operating expenses. This amount is the same as the fiscal year 2017 enacted level and $500,000,000 above the budget request. Substance abuse and safety.--The Committee is aware of concerns regarding criminal activity and substance abuse in public housing. While access to public housing is critical for all low-income residents, the Committee believes it is equally important that a safe and nurturing environment be available for children and families. The Committee directs the Secretary of the Department of Housing and Urban Development, with appropriate consultation and collaboration with PHAs, to review current policies and regulations regarding substance abuse and criminal activity. This review should include a determination of whether policies are effective in promoting both access and safety for families in public housing units. The Committee encourages this review to propose any suggested adjustments and changes to existing statutes or regulations in order to deter criminal activity on public housing property. This report shall be transmitted to the House and Senate Committees on Appropriations within 180 days of enactment of this Act. Alexander County Housing Authority.--The Committee takes notice of the events unfolding in Alexander County, Illinois and expects HUD to work with the community to find adequate housing for public housing residents displaced due to alleged financial mismanagement and fraud by previous PHA leadership that resulted in unlivable conditions and financial insolvency preceding HUD placing the PHA in receivership. Further, the Committee expects HUD to work expeditiously to investigate and resolve the root causes for the receivership and to return the housing authority to local control as soon as local officials can demonstrate the capacity to responsibly manage the Alexander County Housing Authority's portfolio. CHOICE NEIGHBORHOODS INITIATIVE Appropriation, fiscal year 2017....................... $137,500,000 Budget request, fiscal year 2018...................... - - - Recommended in the bill............................... 20,000,000 Bill compared with: Appropriation, fiscal year 2017................... -117,500,000 Budget request, fiscal year 2018.................. +20,000,000 COMMITTEE RECOMMENDATION The Committee recommends $20,000,000 for the Choice Neighborhoods Initiative Program, which is $117,500,000 below the fiscal year 2017 enacted level and $20,000,000 above the budget request. The Committee encourages the Department to give prior year planning grant recipients priority consideration when awarding implementation grants. FAMILY SELF-SUFFICIENCY Appropriation, fiscal year 2017....................... $75,000,000 Budget request, fiscal year 2018...................... 75,000,000 Recommended in the bill............................... 75,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. - - - The Family Self-Sufficiency program funds coordinators to help HUD-assisted residents achieve economic independence. COMMITTEE RECOMMENDATION The Committee provides $75,000,000 to support the Family Self-Sufficiency program. This is the same as the fiscal year 2017 enacted level and the same as the budget request. The Committee expects the Department to prioritize assistance to individuals and families that results in job stability, increased tenant incomes, and greater rent contributions. NATIVE AMERICAN HOUSING BLOCK GRANTS Appropriation, fiscal year 2017....................... $654,000,000 Budget request, fiscal year 2018...................... 600,000,000 Recommended in the bill............................... 654,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +54,000,000 The Native American Housing Block Grants program, authorized by the Native American Housing Assistance and Self- Determination Act of 1996 (25 U.S.C. 4111 et seq.), provides funds to American Indian tribes and their Tribally Designated Housing Entities (TDHEs) to address affordable housing needs within their communities. COMMITTEE RECOMMENDATION The Committee recommends $654,000,000 for Native American Housing Block Grants, which is the same as the fiscal year 2017 enacted level and $54,000,000 above the budget request. --$3,500,000 is for organizations representing Native American housing interests to provide training and technical assistance to Indian housing authorities and TDHEs. Of this amount, no less than $2,000,000 is for a national organization as authorized under NAHASDA. --$2,000,000 is for Title VI loan guarantees up to $17,391,304. Bill language is included to reduce formula allocation funding from any grantee that has an unexpended balance greater than three times its formula allocation. INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT Credit subsidy: Appropriation, fiscal year 2017................... $7,227,000 Budget request, fiscal year 2018.................. - - - Recommended in the bill........................... 7,227,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +7,227,000 Limitation on guaranteed loans: Appropriation, fiscal year 2017................... 1,762,682,927 Budget request, fiscal year 2018.................. - - - Recommended in the bill........................... 1,953,243,243 Bill compared with: Appropriation, fiscal year 2017................... +190,560,316 Budget request, fiscal year 2018.................. +1,953,243,243 Section 184 of the Housing and Community Development Act of 1992 establishes a loan guarantee program for Native American individuals and housing authorities to build new housing or purchase existing housing on trust land. This program provides access to private financing that otherwise might be unavailable because of the unique legal status of Indian trust land. COMMITTEE RECOMMENDATION The Committee recommends $7,227,000 in new credit subsidy for the Section 184 loan guarantee program, which is the same as the fiscal year 2017 enacted level and $7,227,000 above the budget request. This will guarantee a loan volume of $1,953,243,243, which is $190,560,316 above the fiscal year 2017 enacted level and $1,953,243,243 above the budget request. Community Planning and Development Appropriation, fiscal year 2017....................... $6,803,000,000 Budget request, fiscal year 2018...................... 2,580,000,000 Recommended in the bill............................... 6,594,000,000 Bill compared with: Appropriation, fiscal year 2017................... -209,000,000 Budget request, fiscal year 2018.................. +4,014,000,000 The Office of Community Planning and Development (CPD) is responsible for administering the Community Development Block Grants (CDBG), the Home Investment Partnership (HOME), Housing Opportunities for Persons with AIDS (HOPWA), Homeless Assistance Grants (HAG), and other HUD community development programs. Most of these programs pass Federal funds through to state and local governments and other entities to address housing and development needs. COMMITTEE RECOMMENDATION The Committee recommends $6,594,000,000 for Community Planning and Development programs, which is $209,000,000 below the fiscal year 2017 enacted and $4,014,000,000 above the budget request. Veterans' service organizations.--The Committee encourages HUD to examine ways to work with existing, eligible veterans' service organizations to improve their facilities. The Department is encouraged to examine existing programs to evaluate the feasibility of making grants available for facility rehabilitation at eligible veterans' service organizations. The Committee recognizes the important role local veterans' service organizations play in community development and support. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS Appropriation, fiscal year 2017....................... $356,000,000 Budget request, fiscal year 2018...................... 330,000,000 Recommended in the bill............................... 356,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +$26,000,000 The Housing Opportunities for Persons with AIDS (HOPWA) program provides states and localities with resources to address the housing needs of low-income persons living with HIV/AIDS. Funding is distributed by formula to qualifying states and metropolitan areas based on the cumulative incidences of AIDS reported to the Centers for Disease Control. Government recipients are required to have a HUD-approved Comprehensive Plan or Comprehensive Housing Affordability Strategy. COMMITTEE RECOMMENDATION The Committee recommends a total of $356,000,000 for the HOPWA program, which is the same as the fiscal year 2017 enacted and $26,000,000 above the budget request. The Committee recommendation includes formula grants and funding for the renewal of certain expiring contracts that were previously funded under HOPWA competitive grants. COMMUNITY DEVELOPMENT FUND Appropriation, fiscal year 2017....................... $3,060,000,000 Budget request, fiscal year 2018...................... - - - Recommended in the bill............................... 2,960,000,000 Bill compared with: Appropriation, fiscal year 2017................... -100,000,000 Budget request, fiscal year 2018.................. +2,960,000,000 The Community Development Fund, authorized by the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.), provides funding, primarily through Community Development Block Grants, to state and local governments and other eligible entities to carry out community and economic development activities. COMMITTEE RECOMMENDATION The Committee recommends a total of $2,960,000,000 for the Community Development Fund account, which is $100,000,000 below the fiscal year 2017 enacted level and $2,960,000,000 above the budget request. Of the amounts made available: --$2,900,000,000 is for the Community Development Block Grants (``CDBG'') formula program for entitlement communities and states. This is $100,000,000 below the fiscal year 2017 enacted level and $2,900,000,000 above the budget request; and --$60,000,000 is for the Native American Housing and Economic Development Block Grant (also known as ``Indian CDBG''), which is the same as fiscal year 2017 enacted level and $60,000,000 above the budget request. Of the amount provided for the CDBG formula programs $7,000,000 is for insular areas, per 42 U.S.C. 5306(a)(2), which is the same as fiscal year 2017 enacted level and the budget request. The recommendation continues language requiring the Department to notify grantees of their formula allocation within 60 days of enactment of this Act. COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT ------------------------------------------------------------------------ Limitation on Budget Authority guaranteed loans ------------------------------------------------------------------------ Appropriation, fiscal year 2017... - - - ($300,000,000) Budget request, fiscal year 2018.. - - - - - - Recommended in the bill........... - - - (300,000,000) Bill compared with: Appropriation, fiscal year - - - - - - 2017......................... Budget request, fiscal year - - - (+300,000,000) 2018......................... ------------------------------------------------------------------------ The Section 108 Loan Guarantee program is a source of variable an fixed-rate financing for communities undertaking projects eligible under the Community Development and Block Grant (CDBG) program. COMMITTEE RECOMMENDATION The Committee recommendation continues the Section 108 Loan Guarantee program as a borrower-paid subsidy program, and therefore recommends providing no budget authority. The Committee provides a limit on guaranteed loan volume of $300,000,000 which is the same as the fiscal year 2017 enacted level. The budget request did not include a request for this loan guarantee authority. HOME INVESTMENT PARTNERSHIPS PROGRAM Appropriation, fiscal year 2017....................... $950,000,000 Budget request, fiscal year 2018...................... - - - Recommended in the bill............................... 850,000,000 Bill compared with: Appropriation, fiscal year 2017................... -100,000,000 Budget request, fiscal year 2018.................. +850,000,000 The HOME investment partnerships program provides block grants to participating jurisdictions (states, units of local government, Indian tribes, and insular areas) to undertake activities that expand the supply of affordable housing in the jurisdiction. HOME block grants are distributed based on formula allocations. Upon receipt of these Federal funds, state and local governments develop a housing affordability strategy to acquire, rehabilitate, or construct new affordable housing, or to provide rental assistance to eligible families. COMMITTEE RECOMMENDATION The Committee recommends $850,000,000 for activities funded under this account, which is $100,000,000 below the fiscal year 2017 enacted and $850,000,000 above the budget request. People with disabilities and the elderly.--The Committee encourages the Department and grantees to utilize HOME funds to modernize, rehabilitate, and develop housing for people with disabilities and the elderly. The Committee notes that HOME funding is a flexible funding source that can leverage other capital to address the shortage of housing for the elderly and the disabled. SELF-HELP AND ASSISTED HOMEOWNERSHIP OPPORTUNITY PROGRAM Appropriation, fiscal year 2017....................... $54,000,000 Budget request, fiscal year 2018...................... - - - Recommended in the bill............................... 45,000,000 Bill compared with: Appropriation, fiscal year 2017................... -9,000,000 Budget request, fiscal year 2018.................. +45,000,000 Self-Help Homeownership Opportunity Program (SHOP) funds are distributed through grants to nonprofit organizations and consortia that have experience in providing or facilitating self-help homeownership opportunities. Grant funds are used for land acquisition and improvements associated with developing new, decent dwellings for low-income persons, including those living in colonias, using the self-help model. Section 4 Capacity Building funds are set-aside within this account for activities described under section 4(a) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note). Section 4 funds are awarded to a limited number of non-profits, which use the funds to develop the capacity of community development corporations (CDCs) and community housing development organizations (CHDOs). The CDCs and CHDOs then undertake community development and affordable housing activities. Section 4 funds must be matched by recipients with at least three times the grant amount in private funding. COMMITTEE RECOMMENDATION The Committee recommends $45,000,000 for this account which includes $10,000,000 for SHOP: $30,000,000 for Section 4 capacity building, including no less than $5,000,000 for rural capacity building: and $5,000,000 for capacity building grants to national rural housing organizations that operate capacity building activities in at least seven HUD regions. The Committee urges that Section 4 funds be awarded competitively to non-profits to aid community development corporations and community housing development organizations. Further, the Committee recognizes that the Section 4 capacity building program strengthens the nation's lower-income urban and rural communities through the expansion of affordable housing units. HOMELESS ASSISTANCE GRANTS Appropriation, fiscal year 2017....................... $2,383,000,000 Budget request, fiscal year 2018...................... 2,250,000,000 Recommended in the bill............................... 2,383,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +133,000,000 The Homeless Assistance Grants account provides funding for programs under title IV of the McKinney Act, as amended by the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009. HEARTH Act programs include the Continuum of Care (CoC) competitive grants, the Emergency Solutions Grants (ESG) program, and the Rural Housing Stability Grants program. COMMITTEE RECOMMENDATION The Committee recommends $2,383,000,000 for the homeless assistance grants programs, which is the same as the fiscal year 2017 enacted level and $133,000,000 above the budget request. The recommendation includes funding to support continuum of care project renewals of no less than $2,106,000,000, at least $270,000,000 in formula emergency solutions grants, and up to $7,000,000 is available for the national homeless data analysis project. Continuum of care renewals.--The funding level provided for continuum of care renewals is $88,000,000 above the fiscal year 2017 enacted level, and $113,000,000 above the budget request. Emergency solutions grants.--The funding level provided for formula emergency solutions grants is the same as the fiscal year 2017 enacted level and $20,000,000 above the budget request. Performance-driven funding awards.--The Committee believes that holding projects accountable to their ability to demonstrate effectiveness through performance data is essential to getting the most out of limited federal resources. The Committee is encouraged by HUD's commitment to this performance driven decision-making, and urges HUD to continue advancing these strategies to meet the goal of ending chronic homelessness. The recommendation continues language which mandates that the Secretary direct an increasing share of funding on the basis of system performance. Continuum of care funding reallocation.--The recommendation includes language that directs the Secretary to prioritize funding to grantees that, when appropriate, reallocate funding from lower performing projects to higher performing projects. Timeliness of contracts.--The Committee recognizes that significant work on housing and homelessness is done by smaller nonprofit organizations across the country. As an acknowledgement of their contribution to HUD's goals to address homelessness, the Committee encourages HUD to ensure these organizations do not carry a heavy cash flow burden due to the very slow flow of government contract dollars to these entities. As such, the Committee encourages HUD to agree to have all contracts signed and funds available to draw no more than 45 days beyond the beginning of the normal contract period. Housing Programs PROJECT-BASED RENTAL ASSISTANCE Appropriation, fiscal year 2017....................... $10,816,000,000 Budget request, fiscal year 2018...................... 10,751,000,000 Recommended in the bill............................... 11,082,000,000 Bill compared with: Appropriation, fiscal year 2017................... +266,000,000 Budget request, fiscal year 2018.................. +330,900,000 The project-based rental assistance account provides a rental subsidy to a private landlord tied to a specific housing unit so that the properties themselves, rather than the individual living in the unit, remain subsidized. Amounts provided in this account include funding for the renewal of expiring project-based contracts, including Section 8, moderate rehabilitation, and single-room occupancy contracts, amendments to Section 8 project-based contracts, and administrative costs for contract administration. COMMITTEE RECOMMENDATION The Committee provides a total of $11,082,000,000, including $400,000,000 provided as advance appropriations, for the annual renewal of project-based contracts. This funding level is $266,000,000 above the fiscal year 2017 enacted level and $330,900,000 above the budget request. The recommendation funds renewals, amendments, and provides 12 months of funding for all contracts in the portfolio to continue to provide safe and stable affordable housing to approximately 1.2 million households each year. The funding level does not assume any rental reforms proposed in the request. Performance-based contract administrators (PBCAs).--PBCAs are public housing agencies, as defined by 42 USC 1437(a), which include state and local public housing authorities and their instrumentalities. They are responsible for conducting on-site management reviews of assisted properties, adjusting contract rents, and reviewing, processing, and paying monthly vouchers, among other tasks. PBCAs have been integral to the Department's efforts to reduce improper payments, protect residents, and ensure properties are well maintained. In prior years, the Committee directed the Department to solicit and award PBCA contracts under full and open competition, without geographic limitation, and in accordance with the Competition in Contracting Act and the Federal Acquisition Regulation. The Committee continues to reject any attempt to weaken the PBCAs' comprehensive oversight of the properties administered under their management, diminish the applicability of Federal law, or limit out-of-state competition by reliance on letters from state attorneys general, as seen in the 2012 NOFA process, or otherwise. HUD, however, has not been responsive to the Committee's direction to conduct the solicitation and award of performance- based contracts to PBCAs a) under full and open competition, b) without regard to geographic limitations, c) in accordance with the Competition and Contracts Act and Federal Acquisition Regulation, and d) with comprehensive oversight--allowing a single PBCA to be responsible for each of the tasks associated with a particular property receiving project-based rental assistance, including all tasks currently assigned to PBCA contractors as well as any others which HUD may be authorized to use. Until the Committee gets assurances that HUD will respond appropriately, the Committee directs HUD to perform these functions in-house and provides adequate funding under the Management and Administration account. HOUSING FOR THE ELDERLY Appropriation, fiscal year 2017....................... $502,400,000 Budget request, fiscal year 2018...................... 510,000,000 Recommended in the bill............................... 573,000,000 Bill compared with: Appropriation, fiscal year 2017................... +70,600,000 Budget request, fiscal year 2018.................. +63,000,000 The housing for the elderly (Section 202) program provides eligible private, non-profit organizations with capital grants to finance the acquisition, rehabilitation or construction of housing intended for low income elderly people. In addition, the program provides project-based rental assistance contracts (PRAC) to support operational costs for units constructed under the program. COMMITTEE RECOMMENDATION The Committee recommends $573,000,000, $70,600,000 above the fiscal year 2017 enacted level and $63,000,000 above the budget request. This amount will fully fund Section 202 contract renewals and amendments in fiscal year 2018. The recommendation does not include rental reforms proposed in the budget request. The recommendation provides $483,000,000 for the renewal and amendment of project rental assistance contracts (PRAC), up to $90,000,000 for service coordinators and the continuation of congregate services grants, and allows funds for property inspections and related costs. The Committee continues to include bill language relating to the initial contract and renewal terms for assistance provided under this heading and language allowing funds to be used for inspections and analysis of data by HUD's real estate assessment center (REAC) program office. HOUSING FOR PERSONS WITH DISABILITIES Appropriation, fiscal year 2017....................... $146,200,000 Budget request, fiscal year 2018...................... 121,300,000 Recommended in the bill............................... 147,000,000 Bill compared with: Appropriation, fiscal year 2017................... +800,000 Budget request, fiscal year 2018.................. +25,700,000 The Housing for Persons with Disabilities (Section 811) program provides eligible private, non-profit organizations with capital grants to finance the acquisition, rehabilitation or construction of supportive housing for disabled persons and provides project-based rental assistance to support operational costs for such units. COMMITTEE RECOMMENDATION The Committee recommends $147,000,000 for Section 811 activities, which is $800,000 above the fiscal year 2017 enacted level and $25,700,000 above the budget request. This level will fully fund the project rental assistance and project assistant contract renewals and amendments in fiscal year 2018, and does not assume rental reforms proposed in the budget request. The Committee continues to include bill language allowing funds to be used for inspections and analysis of data by HUD's REAC program office. HOUSING COUNSELING ASSISTANCE Appropriation, fiscal year 2017....................... $55,000,000 Budget request, fiscal year 2018...................... 47,000,000 Recommended in the bill............................... 50,000,000 Bill compared with: Appropriation, fiscal year 2017................... -5,000,000 Budget request, fiscal year 2018.................. +3,000,000 Section 106 of the Housing and Urban Development Act of 1968 authorized HUD to provide housing counseling services to homebuyers, homeowners, low and moderate income renters, and the homeless. COMMITTEE RECOMMENDATION The Committee recommends $50,000,000 for housing counseling assistance, $5,000,000 below the fiscal year 2017 enacted level and $3,000,000 above the budget request. The Committee notes that the economy continues to improve and foreclosures continue to decline. Foreclosure filings for 2016 were reported on 933,000 properties, which represents a 10-year low and a reduction of 14 percent from 2015. The foreclosure rate has stayed within a historically normal range for three years, even with the pipeline of legacy foreclosures resulting from the housing bubble. The Committee continues its commitment to counseling programs and provides funding above the requested level for HUD's housing counseling assistance program. Further the Committee continues to provide funding for the Neighborhood Reinvestment Corporation's core program, which offers housing counseling services. The Committee retains bill language that provides two-year funding availability to allow HUD flexibility to obligate recaptures and unobligated balances to support counseling activity rather than allowing the funds to expire. The bill retains language that requires HUD to make grants within 180 days of enactment of this Act, and allows multi-year agreements, subject to the availability of annual appropriations. The Committee encourages HUD to coordinate with FEMA's flood insurance advocate to ensure HUD counselors located in flood-prone states receive adequate training and information to educate future homeowners on their potential flood risks, associated flood insurance premiums, home mitigation measures available proven to reduce flood risk, and any federal assistance available for mitigation projects and activities. RENTAL HOUSING ASSISTANCE Appropriation, fiscal year 2017....................... $20,000,000 Budget request, fiscal year 2018...................... 14,000,000 Recommended in the bill............................... 14,000,000 Bill compared with: Appropriation, fiscal year 2017................... -6,000,000 Budget request, fiscal year 2018.................. - - - The rental housing assistance account includes existing long-term project-based rental assistance contracts covering affordable housing units under the rent supplement and section 236 rental assistance payment (RAP) programs. Enacted in 1965 and 1974 respectively, these programs created affordable units for low-income families. Monthly payments are made to project owners from existing contract balances, and new budget authority for short-term extensions of expiring contracts and annual contract amendments. Contract amendments provide additional subsidy to below-market contracts where rents have been constrained and owners are unable to adequately service properties and perform ongoing maintenance. COMMITTEE RECOMMENDATION The Committee recommends $14,000,000 in funding for the rental housing assistance program, $6,000,000 below the fiscal year 2017 enacted level and equal to the budget request. This appropriation will fully fund contract amendment and extension needs in fiscal year 2018. The Committee continues bill language that allows HUD to use unobligated balances and recaptured funds for extensions and amendments. PAYMENT TO MANUFACTURED HOUSING FEES TRUST FUND Appropriation, fiscal year 2017....................... $10,500,000 Budget request, fiscal year 2018...................... 11,000,000 Recommended in the bill............................... 11,000,000 Bill compared with: Appropriation, fiscal year 2017................... +500,000 Budget request, fiscal year 2018.................. - - - The National Manufactured Housing Construction and Safety Standards Act of 1974, as amended by the Manufactured Housing Improvement Act of 2000, authorizes the Secretary to establish Federal manufactured home construction and safety standards for the construction, design, and performance of manufactured homes. All manufactured homes are required to meet the Federal standards, and fees are charged to producers to cover the costs of administering the Act. HUD estimates that there are 8 million manufactured homes built since 1976 that are currently in use. COMMITTEE RECOMMENDATION The Committee recommends up to $11,000,000 for the manufactured housing standards programs to be derived from certification label fees collected and deposited in the manufactured housing fees trust fund, established pursuant to the Manufactured Housing Improvement Act of 2000. The Committee does not provide a direct appropriation for this account. The recommendation is $500,000 above the fiscal year 2017 enacted level and equal to the budget request. This increase reflects the growth in production since 2011, which is projected to continue. The Committee includes language allowing the Department to collect fees from program participants for the dispute resolution and installation programs. These fees are to be deposited into the trust fund and may be used by the Department subject to the overall cap placed on the account. FEDERAL HOUSING ADMINISTRATION MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT ---------------------------------------------------------------------------------------------------------------- Limitation of Limitation of Administrative direct loans guaranteed loans contract expenses ---------------------------------------------------------------------------------------------------------------- Appropriation, fiscal year 2017..................... $5,000,000 $400,000,000,000 $130,000,000 Budget request, fiscal year 2018.................... 5,000,000 400,000,000,000 160,000,000 Recommended in the bill............................. 5,000,000 400,000,000,000 135,000,000 Bill compared to: Appropriation, fiscal year 2017................. - - - - - - +5,000,000 Budget request, fiscal year 2018................ - - - - - - -25,000,000 ---------------------------------------------------------------------------------------------------------------- The Federal Housing Administration's (FHA) mutual mortgage insurance program account includes the Mutual Mortgage Insurance (MMI) and cooperative management housing insurance funds. This program account covers unsubsidized programs, primarily the single-family home mortgage program, which is the largest of all the FHA programs. These include the Condominium, Section 203(k) rehabilitation, and Home Equity Conversion Mortgage programs (HECM) and the multifamily Cooperative Management Housing Insurance (CMHI) funds. The cooperative housing insurance program provides mortgages for cooperative housing projects of more than five units that are occupied by members of a cooperative housing corporation. COMMITTEE RECOMMENDATION The Committee recommends the following limitations on loan commitments in the MMI program account: $400,000,000,000 for loan guarantees and $5,000,000 for direct loans. The recommendation also includes $135,000,000 for administrative contract expenses. The Committee's recommendation for administrative contract expenses is $5,000,000 above the fiscal year 2017 enacted level and $25,000,000 below the budget request. The increase over the prior year's level is for system automation, quality control efforts, and risk management improvements. The Committee denies authority to assess a new fee to augment administrative costs. FHA loan limits.--The Committee directs HUD to review FHA loan limits in large land area counties that experienced a reduction of at least 25 percent to FHA loan limits in 2014 when the Housing Economic Recovery Act's loan limits replaced those in the Economic Stimulus Act of 2008. The study should analyze if a county's geographic size distorts the FHA loan limit calculation and if home sales price data shows that FHA loan limits are inadequate for distinct subareas. Home equity conversion mortgage (HECM).--The Committee continues bill language that lifts the statutory aggregate cap of 275,000 HECM loan guarantees in fiscal year 2018. Eminent domain.--The Committee continues bill language that prohibits financing of properties obtained through eminent domain. The Committee continues to be concerned about proposals for local governments to seize underwater performing mortgages and then refinance them into an FHA product. The Committee required HUD to submit a report on April 1, 2014 detailing the effects using eminent domain for these purposes will have on the housing market, including FHA primary and refinance market, as well as the broader mortgage market, interest rates, homeownership, and affordability. The Committee continues to await the delivery of this report, and continues to prohibit HUD from financing mortgages for properties that have been subject to eminent domain. Property assessed clean energy (PACE) loans.--The Committee includes bill language prohibiting funds from being used to purchase, guarantee, or insure any mortgage on properties that have a PACE loan in a first lien position--superior to the FHA loan. PACE loans are issued by state or local governments for energy efficiency improvements; are attached to the property, as opposed to the borrower; and often secured by an assessment or tax. Interest rates on these loans are significantly higher than typical mortgage rates, lines of credits, and even some credit cards. Loans repaid by a tax or assessment enjoy a first lien position and, therefore, have priority in receiving proceeds in the event of a foreclosure. A PACE loan would be fully satisfied before the FHA mortgage. FHA's subordinate position increases the risk of loss to the MMI fund and by extension, taxpayers. The Committee notes that the MMI fund was forced to draw $1,700,000,000 from the U.S. Treasury just four years ago to cover projected losses on loans it guarantees, and just reached its statutory capital reserve level just two years ago. In 2010, the Federal Housing Finance Agency (FHFA) prohibited Fannie Mae and Freddie Mac from purchasing a mortgage with an existing first lien PACE loan. In its role as conservator to the GSEs, FHFA stated that ``one of the bedrock principles in the process is that the mortgages supported must remain in a first lien position.'' In 2015, HUD changed its policy and began allowing FHA to insure properties that have a first lien PACE loan. One year later, HUD stated PACE loans could not have super priority status. For delinquent PACE obligations on foreclosed properties, however, PACE has retained a first lien position. The new Administration is concerned about this risky position and is reviewing its policy related to PACE loans. Others are concerned that borrowers are not fully informed and aware of their legal and financial commitments. On April 5, the ``Protecting Americans from Credit Entanglements Act of 2017'' (PACE Act) was introduced in the Senate. This bill would increase transparency for homebuyers by requiring a Truth in Lending Act disclosure that details the loan terms and conditions, consistent with other forms of home financing. The Committee is concerned about HUD's decision to allow an FHA mortgage to be in a second lien position to a PACE loan. The Committee supports energy efficiency improvements, but not at the expense of the MMI fund or general taxpayers. Further, interest rates on FHA projects could increase to reflect this increased risk, making the homebuying process less affordable for the very population that FHA mortgage were created to assist. Therefore, the Committee includes bill language that prospectively prohibits FHA from purchasing, insuring, or guaranteeing a property that has a PACE loan in a first lien position. Finally, the Committee notes that the prohibition does not eliminate the PACE program and consumers will continue to be able to fund energy efficiency improvements via a PACE loan or other financing mechanisms. This prohibition serves only to protect the MMI fund and taxpayers. GENERAL AND SPECIAL RISK PROGRAM ACCOUNT ------------------------------------------------------------------------ Limitation of Limitation of direct loans guaranteed loans ------------------------------------------------------------------------ Appropriation, fiscal year 2017. $5,000,000 $30,000,000,000 Budget request, fiscal year 2018 5,000,000 30,000,000,000 Recommended in the bill......... 5,000,000 30,000,000,000 Bill compared to: Appropriation, fiscal year - - - - - - 2017........................... Budget request, fiscal year - - - - - - 2018........................... ------------------------------------------------------------------------ The Federal Housing Administration's (FHA) general insurance and special risk insurance (GI and SRI) program account includes 17 different programs administered by FHA. The GI fund includes a wide variety of insurance programs for special-purpose single and multifamily loans, including loans for property improvements, manufactured housing, multifamily rental housing, condominiums, housing for the elderly, hospitals, group practice facilities, and nursing homes. The SRI fund includes insurance programs for mortgages in older, declining urban areas that would not otherwise be eligible for insurance, mortgages with interest reduction payments, and mortgages for experimental housing and for high-risk mortgagors who would not normally be eligible for mortgage insurance without housing counseling. COMMITTEE RECOMMENDATION The Committee recommends a limitation on loan guarantees of $30,000,000,000, equal to the fiscal year 2017 enacted level and the budget request. It includes a limitation of $5,000,000 for direct loans, which is equal to the fiscal year 2017 enacted level and equal to the budget request. This program provides short-term purchase money mortgages to allow non- profit and governmental agencies to acquire single-family properties and resell to low income purchasers. However, use has declined recently due to the shortage of state/local government subsidies needed to offset participants' development costs associated with administering the program. The Committee encourages HUD to coordinate with FEMA's flood insurance advocate and identify rehabilitation activities eligible under section 203(k) that also fulfill FEMA's hazard mitigation standards and to identify qualifying disaster mitigation rehabilitation options on its website and other promotional materials. Government National Mortgage Association GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE PROGRAM ACCOUNT ------------------------------------------------------------------------ Limitation of Administrative guaranteed loans contract expenses ------------------------------------------------------------------------ Appropriation, fiscal year 2017. $500,000,000,000 $23,000,000 Budget request, fiscal year 2018 500,000,000,000 25,400,000 Recommended in the bill......... 500,000,000,000 25,400,000 Bill compared to: Appropriation, fiscal year - - - +2,400,000 2017........................... Budget request, fiscal year - - - - - - 2018........................... ------------------------------------------------------------------------ The Guarantees of Mortgage-Backed Securities Program facilitates the financing of residential mortgage loans insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, and the Rural Housing Services program. The Government National Mortgage Association (GNMA) guarantees the timely payment of principal and interest on securities issued by private service institutions such as mortgage companies, commercial banks, savings banks, and savings and loan associations that assemble pools of mortgages and issue securities backed by the pools. In turn, investment proceeds are used to finance additional mortgage loans. Investors include non-traditional sources of credit in the housing market such as pension and retirement funds, life insurance companies, and individuals. COMMITTEE RECOMMENDATION The recommendation includes a $500,000,000,000 limitation on loan commitments for mortgage-backed securities, as requested, and $25,400,000 for the personnel costs of GNMA, to be funded by commitment and multiclass fees. The recommendation for personnel costs is $2,400,000 above the fiscal year 2017 enacted level and equal to the budget request. Policy Development and Research RESEARCH AND TECHNOLOGY Appropriation, fiscal year 2017....................... $89,000,000 Budget request, fiscal year 2018...................... 85,000,000 Recommended in the bill............................... 85,000,000 Bill compared with: Appropriation, fiscal year 2017................... -4,000,000 Budget request, fiscal year 2018.................. - - - Title V of the Housing and Urban Development Act of 1970, as amended, directs the Secretary of the Department of Housing and Urban Development to undertake programs of research, evaluation, and reports relating to the Department's mission and programs. These functions are carried out internally and through grants and contracts with industry, nonprofit research organizations, educational institutions, and through agreements with state and local governments and other federal agencies. The research programs seek ways to improve the efficiency, effectiveness, and equity of HUD programs and to identify methods to achieve cost reductions. This appropriation is used to support HUD evaluation and monitoring activities and to conduct housing surveys. Finally, funds under this heading are used to support technical assistance activities to the various states, communities, and agencies that are charged with administering HUD's programs and funds. COMMITTEE RECOMMENDATION The Committee recommends $85,000,000 for this account, which is $4,000,000 below the fiscal year 2017 enacted level and equal to the budget request. Of the activities proposed in the budget, the Committee recommends up to $50,000,000 for the core research programs, including market surveys, research support and dissemination, data acquisition, housing finance studies, research partnerships, and housing technology. The Committee recommends $5,000,000 for new and continuing studies and demonstration evaluations, with up to $2,000,000 for the Moving to Work study, up to $1,500,000 to continue the Choice Neighborhoods study, and funds for the Family Unification Program and Family Self-Sufficiency evaluation and the Rental Assistance Demonstration Choice Mobility evaluation. Further, the Committee's recommendation includes $30,000,000 for all technical assistance. Of the funds made available under technical assistance, $5,000,000 shall be available on a competitive basis to a non-profit or private sector organizations to provide technical assistance to distressed cities or regions. Of the funds identified for technical assistance to troubled PHA's, the Committee strongly urges the Department to target truly troubled or at-risk PHAs requiring assistance to conduct basic business and housing responsibilities versus assisting with glitzy and bonus endeavors that reflect the previous Administration's strategies, such as energy performance contracts, but do little to fulfill basic needs. The Committee directs HUD to publish the margin of error at the place level for the low-and-moderate income (LMI) American Community Survey data HUD used to determine CDBG eligibility for each place that has a margin of error that is 20% or greater. The Committee directs HUD to provide this data to the House and Senate Committees on Appropriations within 90 days of enactment of this Act. Further, the Committee directs HUD to explore the use of administrative data sets to provide an alternative measure of area income for the CDBG program when standard data have large margins of error and to report its progress to the House and Senate within 90 days of enactment of this Act. As in prior years, the bill includes a general provision in Title II that prohibits funds from being used for a doctoral dissertation research grant program. The bill includes a general provision in Title II that allows the Department to use prior year deobligated or unexpended funds made available to the Office of Policy Development and Research for other research and evaluations. The Committee provides this authority under the condition that any new obligations are subject to the regular reprogramming procedures outlined in Section 405. The Committee looks forward to receiving studies required in the fiscal year 2017 Act: the options for measuring AMI using more localized methodologies; the feasibility of using these alternative measurements; and HUD's plans to test the identified alternatives, and best practices and recommendations to address the displacement of lower-income families and long- time residents in urban areas; and loss of affordable housing across the nation, as required in the fiscal year 2017 Act. Fair Housing and Equal Opportunity FAIR HOUSING ACTIVITIES Appropriation, fiscal year 2017....................... $65,300,000 Budget request, fiscal year 2018...................... 65,300,000 Recommended in the bill............................... 65,300,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. - - - The Office of Fair Housing and Equal Opportunity (OFHEO) is responsible for developing policies and guidance, and for providing technical support for enforcement of the Fair Housing Act and the civil rights statutes. OFHEO serves as the central point for the formulation, clearance and dissemination of policies, intra-departmental clearances, and public information related to fair housing issues. OFHEO receives, investigates, conciliates and recommends the issuance of charges of discrimination and determinations of non-compliance for complaints filed under Title VIII and other civil rights authorities. Additionally, OFHEO conducts civil rights compliance reviews and compliance reviews under section 3. COMMITTEE RECOMMENDATION The Committee recommends $65,300,000 for fair housing programs, equal to the fiscal year 2017 enacted level and the request. Of the total, $24,300,000 is for the fair housing assistance programs; and $39,200,000 for the fair housing initiative programs, of which not less than $7,450,000 is for education and outreach programs. A total of $300,000 is for the limited English proficiency initiative and $1,500,000 is for the National Fair Housing Training Academy (NFHTA). The Committee directs the Department to investigate transitioning training provided by NFHTA to computer and web-based training courses, and directs HUD to provide the committee within 90 days of enactment of this Act, costs and revenues associated with operating NHFTA, and costs and revenues associated with a web-based training model. Further, the Committee directs HUD to focus resources on education, outreach, and training initiatives, and supporting local and state organizations that conduct investigations and adjudicate claims. Spend plan.--The Committee directs the Department to provide a spend plan for all funds and activities in this account concurrent with the fiscal year 2018 operating plan and provide 3 days' notice prior to the announcement of any grant. Affirmatively furthering fair housing (AFFH).--A number of communities and local organizations have expressed concern that the guidance provided by HUD regarding compliance with the new AFFH rule is vague, and the communication with stakeholders regarding requirements and compliance is lacking. In fiscal year 2017, the Committee directed HUD to address these concerns, and continue to refine the tools and resources available to stakeholders to comply with the new rule. The Committee directs HUD to submit a report 90 days after enactment of this Act summarizing activity taken in fiscal year 2017 and plans for fiscal year 2018 to make compliance with this rule more transparent. The Committee continues to carry bill language prohibiting HUD from directing a grant to make zoning changes as part of carrying out the AFFH rule. Disparate impact and insurance.--The Committee notes that the McCarran-Ferguson Act of 1945 explicitly states that, ``unless a Federal law specifically relates to the business of insurance, that law shall not apply where it would interfere with State insurance regulation.'' The Fair Housing Act does not specifically relate to the business of insurance. In fact, The United States District Court, Northern Division of Illinois found that ``HUD's response to the insurance industry's concerns [regarding the Disparate Impact Rule] was arbitrary and capricious'' and remanded a portion of the ``Implementation of the Fair Housing Act's Discriminatory Effects Standard'' rule regarding insurance back to HUD for further consideration and explanation. The Committee is concerned that HUD continues to assert insurance regulatory authority that contradicts the McCarran- Ferguson statutory mandate and the limitations on disparate impact liability set forth by the US Supreme Court in Texas Department of Housing and Community Affairs v The Inclusive Communities Project, Inc., 135 S.Ct. 2507 (2015). Office of Lead Hazard Control and Healthy Homes LEAD HAZARD REDUCTION Appropriation, fiscal year 2017....................... $145,000,000 Budget request, fiscal year 2018...................... 130,000,000 Recommended in the bill............................... 130,000,000 Bill compared with: Appropriation, fiscal year 2017................... -15,000,000 Budget request, fiscal year 2018.................. - - - The Office of Lead Hazard Control and Healthy Homes is responsible for administering the lead-based paint hazard reduction program authorized by Title X of the Housing and Community Development Act of 1992. The office also addresses multiple housing-related health hazards through the healthy homes initiative, pursuant to the Secretary's authority in sections 501 and 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 and 1701z-2). The office develops lead-based paint regulations, guidelines, and policies applicable to HUD programs and enforces the lead disclosure rule issued under Title X. For both lead-related and healthy homes issues, the office designs and administers programs for grants, training, research, demonstration, and education. COMMITTEE RECOMMENDATION The Committee recommends $130,000,000 for the lead programs, which is $15,000,000 below the fiscal year 2017 enacted level and equal to the budget request. The Committee recommends no more than $25,000,000 for the healthy homes initiative, and directs the Department to fund activities aimed at reducing incidences of asthma, mold, pests and radon. The Committee directs the Department to provide a spend plan for all funds and activities in this account concurrent with the fiscal year 2018 operating plan and provide 3 days' notice prior to the announcement of any grant. Information Technology Fund Appropriation, fiscal year 2017....................... $257,000,000 Budget request, fiscal year 2018...................... 250,000,000 Recommended in the bill............................... 150,000,000 Bill compared with: Appropriation, fiscal year 2017................... -107,000,000 Budget request, fiscal year 2018.................. -100,000,000 The Information Technology Fund finances the information technology (IT) systems that support departmental programs and operations, including FHA Mortgage Insurance, housing assistance and grant programs, as well as core financial and general operations. COMMITTEE RECOMMENDATION The Committee recommends $150,000,000 in direct appropriations for the IT Fund to support Department-wide information technology system activities, which is $107,000,000 less than the fiscal year 2017 enacted level and $100,000,000 below the budget request. The Department requires approximately $250,000,000 simply to operate basic telecommunication services and existing information technology contracts, and prior to enactment, the Committee will work to identify sources of funds to maintain and upgrade the Department's systems. The Committee strongly urges HUD to continue refining the services and contracts under the Department's Working Capital Fund so that IT services can be funded by the users. The Committee directs HUD to continue its efforts to retire obsolete, unproductive, and expensive information technology systems, and streamline and consolidate current services contracts in an effort to direct resources for higher priority and more effective systems. The Committee directs the Government Accountability Office (GAO) to evaluate the Department of Housing and Urban Developments' information security framework for protecting information related to housing, community investment, and mortgage loans. Specifically, this review should identify (1) what entities collect, store, and process such data and connect with HUD systems and networks; (2) to what extent do requirements for the protection of the data defined by HUD align with federal guidance; and (3) how effective are the processes and procedures that HUD has in place to oversee the implementation of security and privacy protections for the data. Office of Inspector General Appropriation, fiscal year 2017....................... $128,082,000 Budget request, fiscal year 2018...................... 126,000,000 Recommended in the bill............................... 128,082,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +2,082,000 The Office of Inspector General (IG) provides agency-wide audit and investigative functions to identify and correct management and administrative deficiencies that create conditions for existing or potential instances of waste, fraud, and mismanagement. The audit function provides internal audit, contract audit, and inspection services. Contract audits provide professional advice to agency contracting officials on accounting and financial matters relative to negotiation, award, administration, re-pricing, and settlement of contracts. Internal audits evaluate all facets of agency operations. Inspection services provide detailed technical evaluations of agency operations. The investigative function provides for the detection and investigation of improper and illegal activities involving programs, personnel, and operations. COMMITTEE RECOMMENDATION The Committee recommends $128,082,000 for the Office of Inspector General, which is equal to the fiscal year 2017 enacted level and $2,082,000 greater than the budget request. The Committee does not provide funds for any additional personnel. The Committee has found the reports and investigations undertaken by the IG over the past few years to be interesting and pertinent to the work of the Committee. General Provisions--Department of Housing and Urban Development (INCLUDING TRANSFER OF FUNDS) (INCLUDING RESCISSION) Section 201 splits overpayments evenly between Treasury and State Housing Finance Agencies. Section 202 prohibits funds from being used to investigate or prosecute lawful activities under the Fair Housing Act. Section 203 requires any grant or cooperative agreement to be made on a competitive basis, unless otherwise provided, in accordance with Section 102 of the Department of Housing and Urban Development Reform Act of 1989. Section 204 relates to the availability of funds for services and facilities for GSEs and others subject to the Government Corporation Control Act and the Housing Act of 1950. Section 205 prohibits the use of funds in excess of the budget estimates, unless provided otherwise. Section 206 relates to the expenditure of funds for corporations and agencies subject to the Government Corporation Control Act. Section 207 requires the Secretary to provide quarterly reports on uncommitted, unobligated, recaptured, and excess funds in each departmental program and activity. Section 208 requires the Administration's budget and HUD's budget justifications for fiscal year 2019 be submitted in the identical account and sub-account structure provided in this Act. Section 209 exempts GNMA from certain requirements of the Federal Credit Reform Act of 1990. Section 210 authorizes HUD to transfer debt and use agreements from an obsolete project to a viable project, provided that no additional costs are incurred and other conditions are met. Section 211 sets forth requirements for Section 8 voucher assistance eligibility, and includes consideration for persons with disabilities. Section 212 distributes Native American Housing Block Grants to the same Native Alaskan recipients as in fiscal year 2005. Section 213 authorizes the Secretary to insure mortgages under Section 255 of the National Housing Act. Section 214 instructs HUD on managing and disposing of any multifamily property that is owned or held by HUD. Section 215 allows the Section 108 loan guarantee program to guarantee notes or other obligations issued by any State on behalf of non-entitlement communities in the State. Section 216 allows PHAs that own and operate 400 or fewer units of public housing to be exempt from asset management requirements. Section 217 restricts the Secretary from imposing any requirements or guidelines relating to asset management that restrict or limit the use of capital funds for central office costs, up to the limit established in QHWRA. Section 218 requires that no employee of the Department shall be designated as an allotment holder unless the CFO determines that such employee has received certain training. Section 219 requires the Secretary to publish all notice of funding availability that is competitively awarded on the internet for fiscal year 2018. Section 220 requires attorney fees for programmatic litigation to be paid from the individual program office and Office of General Counsel salaries and expenses appropriations, and requires the Department to submit a spend plan to the House and Senate Committees on Appropriations. Section 221 allows the Secretary to transfer up to 10 percent of funds or $4,000,000, whichever is less, appropriated under the headings ``Administrative Support Offices'' or ``Program Office Salaries and Expenses'' to any other office funded under such headings. Section 222 requires HUD to take certain actions against owners receiving rental subsidies that do not maintain safe properties. Section 223 places a salary and bonus limit on public housing agency officials and employees. Section 224 prohibits the use of funds for the doctoral dissertation research grant program at HUD. Section 225 extends the HOPE VI program to September 30, 2018. Section 226 requires the Secretary to notify the House and Senate Committees on Appropriations at least 3 full business days before grant awards are announced. Section 227 prohibits funds to be used to require or enforce the Physical Needs Assessment (PNA). Section 228 prohibits funds for HUD financing of mortgages for properties that have been subject to eminent domain. Section 229 prohibits the use of funds to terminate the status of a unit of general local government as a metropolitan city with respect to grants under section 106 of the Housing and Community Development Act of 1974. Section 230 allows funding for research, evaluation, and statistical purposes that is unexpended at the time of completion of the contract, grant, or cooperative agreement to be reobligated for additional research. Section 231 prohibits funds to be used for financial awards for employees subject to administrative discipline in fiscal year 2018. Section 232 allows program income as an eligible match for 2016, 2017, and 2018 Continuum of Care funds. Section 233 permits HUD to provide one year transition grants under the continuum of care program with no more than 50 percent of the grant provided for costs of eligible activities of the program component originally funded. Section 234 prohibits the use of funds to direct a grantee to undertake specific changes to existing zoning laws as part of carrying out the final rule entitled, ``Affirmatively Furthering Fair Housing'' or the notice entitled, ``Affirmatively Furthering Fair Housing Assessment Tool''. Section 235 extends the mark to market program to September 30, 2022. Section 236 prohibits new guarantees or insurance on properties with a PACE loan that is or has the potential to be in a superior lien position compared to the mortgage guaranteed or insured under the MMI fund. Section 237 expands authorities under the Rental Assistance Demonstration program. TITLE III--RELATED AGENCIES Access Board SALARIES AND EXPENSES Appropriation, fiscal year 2017....................... $8,190,000 Budget request, fiscal year 2018...................... 7,928,000 Recommended in the bill............................... 8,190,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +262,000 The Access Board was established by section 502 of the Rehabilitation Act of 1973 with the primary mission of ensuring accessibility for people with disabilities. The Access Board is responsible for developing guidelines under the Americans with Disabilities Act, the Architectural Barriers Act, and the Telecommunications Act. The Access Board is responsible for developing standards under section 508 of the Rehabilitation Act for accessible electronic and information technology used by federal agencies. The Access Board also enforces the Architectural Barriers Act and provides training and technical assistance on the guidelines and standards it develops. The Access Board has been given responsibilities under the Help America Vote Act to serve on the Election Assistance Commission's Board of Advisors and Technical Guidelines Development Committee. Additionally, the Board maintains a small research program that develops technical assistance materials and provides information needed for rulemaking. COMMITTEE RECOMMENDATION The Committee recommends $8,190,000 for the operations of the Access Board, which is equal to the fiscal year 2017 enacted level and $262,000 greater than the budget request. Federal Maritime Commission SALARIES AND EXPENSES Appropriation, fiscal year 2017....................... $27,490,000 Budget request, fiscal year 2018...................... 26,149,000 Recommended in the bill............................... 27,490,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +1,341,000 Established in 1961, the Federal Maritime Commission (FMC) is an independent government agency, responsible for the regulation of oceanborne transportation in the foreign commerce of the United States. The Federal Maritime Commission monitors ocean common carriers, marine terminal operators, conferences, ports, and ocean transportation intermediaries to ensure they maintain just and reasonable practices. Among other activities, FMC also maintains a trade monitoring and enforcement program, monitors the laws and practices of foreign governments and their impacts on shipping conditions in the U.S., and enforces special regulatory requirements as they apply to controlled carriers. The principal shipping statutes administered by the FMC are the Shipping Act of 1984 (46 U.S.C. 40101-41309), the Foreign Shipping Practices Act of 1988 (46 U.S.C. 42301-42307), Section 19 of the Merchant Marine Act, 1920 (46 U.S.C. 42101-42109), Public Law 89-777 (46 U.S.C. 44101-44106). COMMITTEE RECOMMENDATION The Committee recommends $27,490,000 for the Federal Maritime Commission. This amount is equal to the fiscal year 2017 enacted level, and $1,341,000 above the budget request. Of the funds provided, not less than $552,024 is available for the Office of Inspector General. National Railroad Passenger Corporation (Amtrak) OFFICE OF INSPECTOR GENERAL SALARIES AND EXPENSES Appropriation, fiscal year 2017....................... $23,274,000 Budget request, fiscal year 2018...................... 23,274,000 Recommended in the bill............................... 23,274,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. - - - The Amtrak Inspector General is an independent, objective unit responsible for detecting and preventing fraud, waste, abuse, and violations of law and for promoting economy, efficiency and effectiveness at Amtrak. COMMITTEE RECOMMENDATION The Committee recommends $23,274,000 for Amtrak's Office of Inspector General (Amtrak OIG), which is equal to the fiscal year 2017 enacted level and the budget request. The recommended level will allow Amtrak OIG to undertake audits, evaluations, and investigations and will ensure the OIG's effective oversight of Amtrak's programs and operations. The OIG's efforts have resulted in valuable studies and recommendations for this Committee and for the Corporation that have yielded cost savings and management improvements. These studies have been in a number of areas, including food and beverage service, capital planning, overtime, and fraud. In addition, Amtrak OIG has been instrumental in developing an audit process to review invoices and identifying overpayments. National Transportation Safety Board SALARIES AND EXPENSES Appropriation, fiscal year 2017....................... $106,000,000 Budget request, fiscal year 2018...................... 105,170,000 Recommended in the bill............................... 106,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +830,000 Initially established along with the Department of Transportation (DOT), the National Transportation Safety Board (NTSB) commenced operations on April 1, 1967, as an independent federal agency charged by Congress with investigating every civil aviation accident in the United States, as well as significant accidents in other modes of transportation-- railroad, highway, marine and pipeline--and issuing safety recommendations aimed at preventing future accidents. Although it has always operated independently, the NTSB relied on the DOT for funding and administrative support until the Independent Safety Board Act of 1974 (Public Law 93-633) severed all ties between the two organizations effective April of 1975. In addition to its investigatory duties, the NTSB is responsible for maintaining the government's database of civil aviation accidents and conducting special studies of transportation safety issues of national significance. Furthermore, in accordance with the provisions of international treaties, the NTSB supplies investigators to serve as U.S. Accredited Representatives for aviation accidents overseas involving U.S.-registered aircraft, or involving aircraft or major components of U.S. manufacture. The NTSB also serves as the court of appeals for any airman, mechanic or mariner whenever certificate action is taken by the Administrator of the Federal Aviation Administration (FAA) or the U.S. Coast Guard Commandant, or when civil penalties are assessed by the FAA. In addition, the NTSB operates the NTSB Academy in Ashburn, Virginia. COMMITTEE RECOMMENDATION The Committee recommends $106,000,000 for the salaries and expenses of the NTSB, which is equal to the fiscal year 2017 enacted level and $830,000 greater than the budget request. NTSB Academy.--The agency is encouraged to continue to seek additional opportunities to lease out, or otherwise generate revenue from the NTSB Academy, so that the agency can appropriately focus its resources on the important investigative work that is central to the agency's mission. In addition, the agency is again directed to submit detailed information on the costs associated with the NTSB Academy, as well as the revenue the facility is expected to generate, as part of the fiscal year 2019 budget request. Neighborhood Reinvestment Corporation PAYMENT TO THE NEIGHBORHOOD REINVESTMENT CORPORATION Appropriation, fiscal year 2017....................... $140,000,000 Budget request, fiscal year 2018...................... 27,400,000 Recommended in the bill............................... 140,000,000 Bill compared with: Appropriation, fiscal year 2017................... - - - Budget request, fiscal year 2018.................. +112,600,000 The Neighborhood Reinvestment Corporation (NRC) was created by the Neighborhood Reinvestment Corporation Act (title VI of the Housing and Community Development Amendments of 1978). Neighborhood Reinvestment Corporation now operates under the trade name `NeighborWorks America.' NeighborWorks America helps local communities establish working partnerships between residents and representatives of the public and private sectors. These partnership-based organizations are independent, tax-exempt, community-based nonprofit entities, often referred to as NeighborWorks organizations. COMMITTEE RECOMMENDATION The Committee recommends an appropriation of $140,000,000 for fiscal year 2018, which is equal to the fiscal year 2017 enacted level and $112,600,000 above the budget request. Surface Transportation Board SALARIES AND EXPENSES Appropriation, fiscal year 2017....................... $37,000,000 Budget request, fiscal year 2018...................... 37,100,000 Recommended in the bill............................... 37,100,000 Bill compared with: Appropriation, fiscal year 2017................... +100,000 Budget request, fiscal year 2018.................. - - - The Surface Transportation Board (STB) was created in the Interstate Commerce Commission Termination Act of 1995 and is the successor agency to the Interstate Commerce Commission. The STB is an economic regulatory and adjudicatory body charged by Congress with resolving railroad rate and service disputes and reviewing proposed railroad mergers, as the regulation of other surface transportation carriers, including intercity bus industry and surface pipeline carriers, and household-good carriers. The Surface Transportation Board Reauthorization Act of 2015 (P.L. 114-110) established the Board as a wholly independent agency and expanded the Board's membership from three to five Board Members. COMMITTEE RECOMMENDATION The Committee recommends an appropriation of $37,100,000 for fiscal year 2018, which is $100,000 more than the fiscal year 2017 enacted level and equal to the budget request. The STB is estimated to collect $1,250,000 in fees, which will offset the appropriation for a total program cost of $35,850,000. United States Interagency Council on Homelessness OPERATING EXPENSES Appropriation, fiscal year 2017....................... $3,600,000 Budget request, fiscal year 2018...................... 570,000 Recommended in the bill............................... 570,000 Bill compared with: Appropriation, fiscal year 2017................... -3,030,000 Budget request, fiscal year 2018.................. - - - The mission of the United States Interagency Council on Homelessness (USICH) is to coordinate multi-agency Federal response to homelessness. COMMITTEE RECOMMENDATION The Committee recommends $570,000 for the shut-down costs of the United States Interagency Council on Homelessness. This is $3,030,000 below the fiscal year 2017 enacted level and the same as the budget request. The Committee encourages the Administration to continue interagency outreach on homelessness strategies within available resources. TITLE IV--GENERAL PROVISIONS, THIS ACT (INCLUDING RESCISSIONS) Section 401 prohibits pay and other expenses for non- Federal parties intervening in regulatory or adjudicatory proceedings. Section 402 prohibits obligations beyond the current fiscal year and prohibits transfers of funds unless expressly so provided herein. Section 403 limits consulting service expenditures in procurement contracts to those contained in the public record. Section 404 prohibits employee training not directly related to the performance of official duties. Section 405 specifies requirements for reprogramming funds. Section 406 provides that fifty percent of unobligated balances for salaries and expenses may remain available for certain purposes, subject to the approval of the House and Senate Committees on Appropriations. Section 407 prohibits the use of funds for any project that seeks to use the power of eminent domain, unless eminent domain is employed only for a public use. Section 408 prohibits funds from being transferred to any department, agency, or instrumentality of the U.S. Government, except where transfer authority is provided in this Act. Section 409 prohibits funds in this Act from being used to permanently replace an employee intent on returning to his or her past occupation after completion of military service. Section 410 prohibits funds in this Act from being used unless the expenditure is in compliance with the Buy American Act. Section 411 prohibits funds from being appropriated or made available to any person or entity that has been convicted of violating the Buy American Act. Section 412 prohibits funds for first-class airline accommodations in contravention of sections 301-10.122 and 301- 10.123 of title 41 CFR. Section 413 prohibits funds from being used for the approval of a new foreign air carrier permit or exemption application if that approval would contravene United States law or Article 17 bis of the U.S.-E.U.-Iceland-Norway Air Transport Agreement. Section 414 restricts the number of employees that agencies funded in this Act may send to international conferences. Section 415 caps the amount of fees the Surface Transportation Board can charge and collect for rate or practice complaints filed at the amount authorized for court civil suit filing fees. Section 416 rescinds all unobligated balances from various salaries and expenses accounts. Section 417 prohibits funds from being used to maintain or establish computer networks unless such networks block the viewing, downloading, or exchange of pornography. Section 418 establishes a spending reduction account. House of Representatives Reporting Requirements The following materials are submitted in accordance with various requirements of the Rules of the House of Representatives: STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding: The Committee on Appropriations considers program performance, including a program's success in developing and attaining outcome-related goals and objectives, in developing funding recommendations. RESCISSION OF FUNDS Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following lists the rescissions of unexpended balances included in the accompanying bill: $800,000,000 of unobligated balances of contract authority apportioned to the States under chapter 1 of title 23, United States Code for ``Federal-aid Highways''; Such sums that are available from ``Department of Housing and Urban Development--Housing Certificate Fund''; Section 201 rescinds 50% of funds that are recaptured from projects described in section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988. Section 416 rescinds all unobligated balances, including recaptures and carryover, from funds appropriated by Public Law 155-31 for ``Department of Transportation--Office of the Secretary--Salaries and Expenses'', ``Department of Transportation--Office of the Secretary--Office of Civil Rights'', ``Department of Transportation--Office of the Secretary--Small and Disadvantaged Business Utilization and Outreach'', ``Department of Transportation--Federal Transit Administration-- Administrative Expenses'', ``Department of Transportation--Pipeline and Hazardous Materials Safety Administration--Operational Expenses'', ``Surface Transportation Board--Salaries and Expenses'', ``Access Board--Salaries and Expenses'', ``Federal Maritime Commission--Salaries and Expenses'', ``National Railroad Passenger Corporation--Office of Inspector General--Salaries and Expenses'', ``National Transportation Safety Board--Salaries and Expenses'', and ``United States Interagency Council on Homelessness--Operating Expenses'', and from ``Department of Housing and Urban Development-- Management and Administration'', ``Department of Housing and Urban Development--Program Office Salaries and Expenses''. TRANSFER OF FUNDS Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following lists the transfers of unexpended balances included in the accompanying bill: UNDER TITLE I--DEPARTMENT OF TRANSPORTATION ------------------------------------------------------------------------ Account to which Account from which the transfer the transfer is Amount is made made ------------------------------------------------------------------------ Office of the Secretary......... Office of the 10% of certain Secretary. funds subject to conditions Various......................... Office of the Such sums as Secretary, necessary National Surface Transportation and Innovative Finance Bureau. Office of the Secretary, Various........... Such sums as National Surface Transportation necessary and Innovative Finance Bureau. Federal Aviation Administration, Federal Aviation 5% of certain Operations. Administration, funds subject to Operations. conditions FHWA: Limitation on Appalachian $3,248,000 administrative expenses. Regional Commission. Maritime Administration, Office of the $3,000,000 Maritime Guaranteed Loan (Title Secretary, XI) Program Account. National Surface Transportation and Innovative Finance Bureau. ------------------------------------------------------------------------ UNDER TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ------------------------------------------------------------------------ Account to which Account from which the transfer the transfer is Amount is made made ------------------------------------------------------------------------ Administrative Support Offices.. Information $10,000,000 Technology Fund. subject to conditions Executive Offices, Working Capital Such sums as Administrative Support Offices, Fund. necessary Program Office Salaries and Expenses, Government National Mortgage Association. Public and Indian Housing, Public Housing $10,000,000 Tenant-Based Rental Assistance. Capital Fund. subject to conditions Administrative Support Offices.. Program Office $4,000,000 subject Salaries and to conditions Expenses. Program Office Salaries and Administrative $4,000,000 subject Expenses. Support Offices. to conditions Housing for the Elderly......... Tenant Based Such sums as Rental Assistance. necessary Housing for the Elderly......... Project Based Such sums as Rental Assistance. necessary ------------------------------------------------------------------------ DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED SPENDING ITEMS Neither the bill nor the report contains any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9 of rule XXI. COMPLIANCE WITH RULE XIII, CL. 3(E) (RAMSEYER RULE) In compliance with clause 3(e) of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no changes is proposed is shown in roman): Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule) In compliance with clause 3(e) of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman): RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976 * * * * * * * TITLE V--RAILROAD REHABILITATION AND IMPROVEMENT FINANCING * * * * * * * SEC. 503. ADMINISTRATION OF DIRECT LOANS AND LOAN GUARANTEES. (a) Applications.--The Secretary shall prescribe the form and contents required of applications for assistance under section 502, to enable the Secretary to determine the eligibility of the applicant's proposal, and shall establish terms and conditions for direct loans and loan guarantees made under that section, including a program guide, a standard term sheet, and specific timetables. (b) Full Faith and Credit.--All guarantees entered into by the Secretary under section 502 shall constitute general obligations of the United States of America backed by the full faith and credit of the United States of America. (c) Assignment of Loan Guarantees.--The holder of a loan guarantee made under section 502 may assign the loan guarantee in whole or in part, subject to such requirements as the Secretary may prescribe. (d) Modifications.--The Secretary may approve the modification of any term or condition of a direct loan, loan guarantee, direct loan obligation, or loan guarantee commitment, including the rate of interest, time of payment of interest or principal, or security requirements, if the Secretary finds in writing that-- (1) the modification is equitable and is in the overall best interests of the United States; (2) consent has been obtained from the applicant and, in the case of a loan guarantee or loan guarantee commitment, the holder of the obligation; and (3) the modification cost has been covered under section 502(f). (e) Compliance.--The Secretary shall assure compliance, by an applicant, any other party to the loan, and any railroad or railroad partner for whose benefit assistance is intended, with the provisions of this title, regulations issued hereunder, and the terms and conditions of the direct loan or loan guarantee, including through regular periodic inspections. (f) Commercial Validity.--For purposes of claims by any party other than the Secretary, a loan guarantee or loan guarantee commitment shall be conclusive evidence that the underlying obligation is in compliance with the provisions of this title, and that such obligation has been approved and is legal as to principal, interest, and other terms. Such a guarantee or commitment shall be valid and incontestable in the hands of a holder thereof, including the original lender or any other holder, as of the date when the Secretary granted the application therefor, except as to fraud or material misrepresentation by such holder. (g) Default.--The Secretary shall prescribe regulations setting forth procedures in the event of default on a loan made or guaranteed under section 502. The Secretary shall ensure that each loan guarantee made under that section contains terms and conditions that provide that-- (1) if a payment of principal or interest under the loan is in default for more than 30 days, the Secretary shall pay to the holder of the obligation, or the holder's agent, the amount of unpaid guaranteed interest; (2) if the default has continued for more than 90 days, the Secretary shall pay to the holder of the obligation, or the holder's agent, 90 percent of the unpaid guaranteed principal; (3) after final resolution of the default, through liquidation or otherwise, the Secretary shall pay to the holder of the obligation, or the holder's agent, any remaining amounts guaranteed but which were not recovered through the default's resolution; (4) the Secretary shall not be required to make any payment under paragraphs (1) through (3) if the Secretary finds, before the expiration of the periods described in such paragraphs, that the default has been remedied; and (5) the holder of the obligation shall not receive payment or be entitled to retain payment in a total amount which, together with all other recoveries (including any recovery based upon a security interest in equipment or facilities) exceeds the actual loss of such holder. (h) Rights of the Secretary.-- (1) Subrogation.--If the Secretary makes payment to a holder, or a holder's agent, under subsection (g) in connection with a loan guarantee made under section 502, the Secretary shall be subrogated to all of the rights of the holder with respect to the obligor under the loan. (2) Disposition of property.--The Secretary may complete, recondition, reconstruct, renovate, repair, maintain, operate, charter, rent, sell, or otherwise dispose of any property or other interests obtained pursuant to this section. The Secretary shall not be subject to any Federal or State regulatory requirements when carrying out this paragraph. (i) Action Against Obligor.--The Secretary may bring a civil action in an appropriate Federal court in the name of the United States in the event of a default on a direct loan made under section 502, or in the name of the United States or of the holder of the obligation in the event of a default on a loan guaranteed under section 502. The holder of a guarantee shall make available to the Secretary all records and evidence necessary to prosecute the civil action. The Secretary may accept property in full or partial satisfaction of any sums owed as a result of a default. If the Secretary receives, through the sale or other disposition of such property, an amount greater than the aggregate of-- (1) the amount paid to the holder of a guarantee under subsection (g) of this section; and (2) any other cost to the United States of remedying the default, the Secretary shall pay such excess to the obligor. (j) Breach of Conditions.--The Attorney General shall commence a civil action in an appropriate Federal court to enjoin any activity which the Secretary finds is in violation of this title, regulations issued hereunder, or any conditions which were duly agreed to, and to secure any other appropriate relief. (k) Attachment.--No attachment or execution may be issued against the Secretary, or any property in the control of the Secretary, prior to the entry of final judgment to such effect in any State, Federal, or other court. (l) Charges and Loan Servicing.-- (1) Purposes.--The Secretary may collect from each applicant, obligor, or loan party a reasonable charge for-- (A) the cost of evaluating the application, amendments, modifications, and waivers, including for evaluating project viability, applicant creditworthiness, and the appraisal of the value of the equipment or facilities for which the direct loan or loan guarantee is sought, and for making necessary determinations and findings; (B) the cost of award management and project management oversight; (C) the cost of services from expert firms, including counsel, and independent financial advisors to assist in the underwriting, auditing, servicing, and exercise of rights with respect to direct loans and loan guarantees; and (D) the cost of all other expenses incurred as a result of a breach of any term or condition or any event of default on a direct loan or loan guarantee. (2) Standards.--The Secretary may charge different amounts under this subsection based on the different costs incurred under paragraph (1). (3) Servicer.-- (A) In general.--The Secretary may appoint a financial entity to assist the Secretary in servicing a direct loan or loan guarantee under this title. (B) Duties.--A servicer appointed under subparagraph (A) shall act as the agent of the Secretary in serving a direct loan or loan guarantee under this title. (C) Fees.--A servicer appointed under subparagraph (A) shall receive a servicing fee from the obligor or other loan party, subject to approval by the Secretary. (4) [Safety and operations account] National Surface Transportation and Innovative Finance Bureau Account, Office of the Secretary.--Amounts collected under this subsection shall-- (A) be credited directly to the Safety and Operations account of the Federal Railroad Administration; and (B) remain available until expended to pay for the costs described in this subsection. (m) Fees and Charges.--Except as provided in this title, the Secretary may not assess any fees, including user fees, or charges in connection with a direct loan or loan guarantee provided under section 502. * * * * * * * ---------- TITLE 23, UNITED STATES CODE * * * * * * * CHAPTER 1--FEDERAL-AID HIGHWAYS * * * * * * * Sec. 127. Vehicle weight limitations - Interstate System (a) In General.-- (1) The Secretary shall withhold 50 percent of the apportionment of a State under section 104(b)(1) in any fiscal year in which the State does not permit the use of The Dwight D. Eisenhower System of Interstate and Defense Highways within its boundaries by vehicles with a weight of twenty thousand pounds carried on any one axle, including enforcement tolerances, or with a tandem axle weight of thirty-four thousand pounds, including enforcement tolerances, or a gross weight of at least eighty thousand pounds for vehicle combinations of five axles or more. (2) However, the maximum gross weight to be allowed by any State for vehicles using The Dwight D. Eisenhower System of Interstate and Defense Highways shall be twenty thousand pounds carried on one axle, including enforcement tolerances, and a tandem axle weight of thirty-four thousand pounds, including enforcement tolerances and with an overall maximum gross weight, including enforcement tolerances, on a group of two or more consecutive axles produced by application of the following formula: W=500(LN/(N- 1)+12N+36) where W equals overall gross weight on any group of two or more consecutive axles to the nearest five hundred pounds, L equals distance in feet between the extreme of any group of two or more consecutive axles, and N equals number of axles in group under consideration, except that two consecutive sets of tandem axles may carry a gross load of thirty-four thousand pounds each providing the overall distance between the first and last axles of such consecutive sets of tandem axles (1) is thirty-six feet or more, or (2) in the case of a motor vehicle hauling any tank trailer, dump trailer, or ocean transport container before September 1, 1989, is 30 feet or more: Provided, That such overall gross weight may not exceed eighty thousand pounds, including all enforcement tolerances, except for vehicles using Interstate Route 29 between Sioux City, Iowa, and the border between Iowa and South Dakota or vehicles using Interstate Route 129 between Sioux City, Iowa, and the border between Iowa and Nebraska, and except for those vehicles and loads which cannot be easily dismantled or divided and which have been issued special permits in accordance with applicable State laws, or the corresponding maximum weights permitted for vehicles using the public highways of such State under laws or regulations established by appropriate State authority in effect on July 1, 1956, except in the case of the overall gross weight of any group of two or more consecutive axles on any vehicle (other than a vehicle comprised of a motor vehicle hauling any tank trailer, dump trailer, or ocean transport container on or after September 1, 1989), on the date of enactment of the Federal-Aid Highway Amendments of 1974, whichever is the greater. (3) Any amount which is withheld from apportionment to any State pursuant to the foregoing provisions shall lapse if not released and obligated within the availability period specified in section 118(b). (4) This section shall not be construed to deny apportionment to any State allowing the operation within such State of any vehicles or combinations thereof, other than vehicles or combinations subject to subsection (d) of this section, which the State determines could be lawfully operated within such State on July 1, 1956, except in the case of the overall gross weight of any group of two or more consecutive axles, on the date of enactment of the Federal-Aid Highway Amendments of 1974. (5) With respect to the State of Hawaii, laws or regulations in effect on February 1, 1960, shall be applicable for the purposes of this section in lieu of those in effect on July 1, 1956. (6) With respect to the State of Colorado, vehicles designed to carry 2 or more precast concrete panels shall be considered a nondivisible load. (7) With respect to the State of Michigan, laws or regulations in effect on May 1, 1982, shall be applicable for the purposes of this subsection. (8) With respect to the State of Maryland, laws and regulations in effect on June 1, 1993, shall be applicable for the purposes of this subsection. (9) The State of Louisiana may allow, by special permit, the operation of vehicles with a gross vehicle weight of up to 100,000 pounds for the hauling of sugarcane during the harvest season, not to exceed 100 days annually. (10) With respect to Interstate Routes 89, 93, and 95 in the State of New Hampshire, State laws (including regulations) concerning vehicle weight limitations that were in effect on January 1, 1987, and are applicable to State highways other than the Interstate System, shall be applicable in lieu of the requirements of this subsection. (11)(A) With respect to all portions of the Interstate Highway System in the State of Maine, laws (including regulations) of that State concerning vehicle weight limitations applicable to other State highways shall be applicable in lieu of the requirements under this subsection. (B) With respect to all portions of the Interstate Highway System in the State of Vermont, laws (including regulations) of that State concerning vehicle weight limitations applicable to other State highways shall be applicable in lieu of the requirements under this subsection. (12) Heavy duty vehicles.-- (A) In general.--Subject to subparagraphs (B) and (C), in order to promote reduction of fuel use and emissions because of engine idling, the maximum gross vehicle weight limit and the axle weight limit for any heavy-duty vehicle equipped with an idle reduction technology shall be increased by a quantity necessary to compensate for the additional weight of the idle reduction system. (B) Maximum weight increase.--The weight increase under subparagraph (A) shall be not greater than 550 pounds. (C) Proof.--On request by a regulatory agency or law enforcement agency, the vehicle operator shall provide proof (through demonstration or certification) that-- (i) the idle reduction technology is fully functional at all times; and (ii) the 550-pound gross weight increase is not used for any purpose other than the use of idle reduction technology described in subparagraph (A). (13) Milk products.--A vehicle carrying fluid milk products shall be considered a load that cannot be easily dismantled or divided. (b) Reasonable Access.--No State may enact or enforce any law denying reasonable access to motor vehicles subject to this title to and from the Interstate Highway System to terminals and facilities for food, fuel, repairs, and rest. (c) Ocean Transport Container Defined.--For purposes of this section, the term ``ocean transport container'' has the meaning given the term ``freight container'' by the International Standards Organization in Series 1, Freight Containers, 3rd Edition (reference number IS0668-1979(E)) as in effect on the date of the enactment of this subsection. (d) Longer Combination Vehicles.-- (1) Prohibition.-- (A) General continuation rule.--A longer combination vehicle may continue to operate only if the longer combination vehicle configuration type was authorized by State officials pursuant to State statute or regulation conforming to this section and in actual lawful operation on a regular or periodic basis (including seasonal operations) on or before June 1, 1991, or pursuant to section 335 of the Department of Transportation and Related Agencies Appropriations Act, 1991 (104 Stat. 2186). (B) Applicability of state laws and regulations.--All such operations shall continue to be subject to, at the minimum, all State statutes, regulations, limitations and conditions, including, but not limited to, routing-specific and configuration-specific designations and all other restrictions, in force on June 1, 1991; except that subject to such regulations as may be issued by the Secretary pursuant to paragraph (5) of this subsection, the State may make minor adjustments of a temporary and emergency nature to route designations and vehicle operating restrictions in effect on June 1, 1991, for specific safety purposes and road construction. (C) Wyoming.--In addition to those vehicles allowed under subparagraph (A), the State of Wyoming may allow the operation of additional vehicle configurations not in actual operation on June 1, 1991, but authorized by State law not later than November 3, 1992, if such vehicle configurations comply with the single axle, tandem axle, and bridge formula limits set forth in subsection (a) and do not exceed 117,000 pounds gross vehicle weight. (D) Ohio.--In addition to vehicles which the State of Ohio may continue to allow to be operated under subparagraph (A), such State may allow longer combination vehicles with 3 cargo carrying units of 28 1/2 feet each (not including the truck tractor) not in actual operation on June 1, 1991, to be operated within its boundaries on the 1-mile segment of Ohio State Route 7 which begins at and is south of exit 16 of the Ohio Turnpike. (E) Alaska.--In addition to vehicles which the State of Alaska may continue to allow to be operated under subparagraph (A), such State may allow the operation of longer combination vehicles which were not in actual operation on June 1, 1991, but which were in actual operation prior to July 5, 1991. (F) Iowa.--In addition to vehicles that the State of Iowa may continue to allow to be operated under subparagraph (A), the State may allow longer combination vehicles that were not in actual operation on June 1, 1991, to be operated on Interstate Route 29 between Sioux City, Iowa, and the border between Iowa and South Dakota or Interstate Route 129 between Sioux City, Iowa, and the border between Iowa and Nebraska. (2) Additional state restrictions.-- (A) In general.--Nothing in this subsection shall prevent any State from further restricting in any manner or prohibiting the operation of longer combination vehicles otherwise authorized under this subsection; except that such restrictions or prohibitions shall be consistent with the requirements of sections 31111-31114 of title 49. (B) Minor adjustments.--Any State further restricting or prohibiting the operations of longer combination vehicles or making minor adjustments of a temporary and emergency nature as may be allowed pursuant to regulations issued by the Secretary pursuant to paragraph (5) of this subsection, shall, within 30 days, advise the Secretary of such action, and the Secretary shall publish a notice of such action in the Federal Register. (3) Publication of list.-- (A) Submission to secretary.--Within 60 days of the date of the enactment of this subsection, each State (i) shall submit to the Secretary for publication in the Federal Register a complete list of (I) all operations of longer combination vehicles being conducted as of June 1, 1991, pursuant to State statutes and regulations; (II) all limitations and conditions, including, but not limited to, routing-specific and configuration-specific designations and all other restrictions, governing the operation of longer combination vehicles otherwise prohibited under this subsection; and (III) such statutes, regulations, limitations, and conditions; and (ii) shall submit to the Secretary copies of such statutes, regulations, limitations, and conditions. (B) Interim list.--Not later than 90 days after the date of the enactment of this subsection, the Secretary shall publish an interim list in the Federal Register, consisting of all information submitted pursuant to subparagraph (A). The Secretary shall review for accuracy all information submitted by the States pursuant to subparagraph (A) and shall solicit and consider public comment on the accuracy of all such information. (C) Limitation.--No statute or regulation shall be included on the list submitted by a State or published by the Secretary merely on the grounds that it authorized, or could have authorized, by permit or otherwise, the operation of longer combination vehicles, not in actual operation on a regular or periodic basis on or before June 1, 1991. (D) Final list.--Except as modified pursuant to paragraph (1)(C) of this subsection, the list shall be published as final in the Federal Register not later than 180 days after the date of the enactment of this subsection. In publishing the final list, the Secretary shall make any revisions necessary to correct inaccuracies identified under subparagraph (B). After publication of the final list, longer combination vehicles may not operate on the Interstate System except as provided in the list. (E) Review and correction procedure.--The Secretary, on his or her own motion or upon a request by any person (including a State), shall review the list issued by the Secretary pursuant to subparagraph (D). If the Secretary determines there is cause to believe that a mistake was made in the accuracy of the final list, the Secretary shall commence a proceeding to determine whether the list published pursuant to subparagraph (D) should be corrected. If the Secretary determines that there is a mistake in the accuracy of the list the Secretary shall correct the publication under subparagraph (D) to reflect the determination of the Secretary. (4) Longer combination vehicle defined.--For purposes of this section, the term ``longer combination vehicle'' means any combination of a truck tractor and 2 or more trailers or semitrailers which operates on the Interstate System at a gross vehicle weight greater than 80,000 pounds. (5) Regulations regarding minor adjustments.--Not later than 180 days after the date of the enactment of this subsection, the Secretary shall issue regulations establishing criteria for the States to follow in making minor adjustments under paragraph (1)(B). (e) Operation of Certain Specialized Hauling Vehicles on Interstate Route 68.--The single axle, tandem axle, and bridge formula limits set forth in subsection (a) shall not apply to the operation on Interstate Route 68 in Garrett and Allegany Counties, Maryland, of any specialized vehicle equipped with a steering axle and a tridem axle and used for hauling coal, logs, and pulpwood if such vehicle is of a type of vehicle as was operating in such counties on United States Route 40 or 48 for such purpose on August 1, 1991. (f) Operation of Certain Specialized Hauling Vehicles on Certain Wisconsin Highways.--If the 104-mile portion of Wisconsin State Route 78 and United States Route 51 between Interstate Route 94 near Portage, Wisconsin, and Wisconsin State Route 29 south of Wausau, Wisconsin, is designated as part of the Interstate System under section 103(c)(4)(A), the single axle weight, tandem axle weight, gross vehicle weight, and bridge formula limits set forth in subsection (a) shall not apply to the 104-mile portion with respect to the operation of any vehicle that could legally operate on the 104-mile portion before the date of the enactment of this subsection. (g) Operation of Certain Specialized Hauling Vehicles on Certain Pennsylvania Highways.--If the segment of United States Route 220 between Bedford and Bald Eagle, Pennsylvania, is designated as part of the Interstate System, the single axle weight, tandem axle weight, gross vehicle weight, and bridge formula limits set forth in subsection (a) shall not apply to that segment with respect to the operation of any vehicle which could have legally operated on that segment before the date of the enactment of this subsection. (h) Waiver for a Route in State of Maine During Periods of National Emergency.-- (1) In general.--Notwithstanding any other provision of this section, the Secretary, in consultation with the Secretary of Defense, may waive or limit the application of any vehicle weight limit established under this section with respect to the portion of Interstate Route 95 in the State of Maine between Augusta and Bangor for the purpose of making bulk shipments of jet fuel to the Air National Guard Base at Bangor International Airport during a period of national emergency in order to respond to the effects of the national emergency. (2) Applicability.--Emergency limits established under paragraph (1) shall preempt any inconsistent State vehicle weight limits. (i) Special Permits During Periods of National Emergency.-- (1) In general.--Notwithstanding any other provision of this section, a State may issue special permits during an emergency to overweight vehicles and loads that can easily be dismantled or divided if-- (A) the President has declared the emergency to be a major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); (B) the permits are issued in accordance with State law; and (C) the permits are issued exclusively to vehicles and loads that are delivering relief supplies. (2) Expiration.--A permit issued under paragraph (1) shall expire not later than 120 days after the date of the declaration of emergency under subparagraph (A) of that paragraph. (j) Operation of Vehicles on Certain Other Wisconsin Highways.--If any segment of the United States Route 41 corridor, as described in section 1105(c)(57) of the Intermodal Surface Transportation Efficiency Act of 1991, is designated as a route on the Interstate System, a vehicle that could operate legally on that segment before the date of such designation may continue to operate on that segment, without regard to any requirement under subsection (a). (k) Operation of Vehicles on Certain Mississippi Highways.-- If any segment of United States Route 78 in Mississippi from mile marker 0 to mile marker 113 is designated as part of the Interstate System, no limit established under this section may apply to that segment with respect to the operation of any vehicle that could have legally operated on that segment before such designation. (l) Operation of Vehicles on Certain Kentucky Highways.-- (1) In general.--If any segment of highway described in paragraph (2) is designated as a route on the Interstate System, a vehicle that could operate legally on that segment before the date of such designation may continue to operate on that segment, without regard to any requirement under subsection (a). (2) Description of highway segments.--The highway segments referred to in paragraph (1) are as follows: (A) Interstate Route 69 in Kentucky (formerly the Wendell H. Ford (Western Kentucky) Parkway) from the Interstate Route 24 Interchange, near Eddyville, to the Edward T. Breathitt (Pennyrile) Parkway Interchange. (B) The Edward T. Breathitt (Pennyrile) Parkway (to be designated as Interstate Route 69) in Kentucky from the Wendell H. Ford (Western Kentucky) Parkway Interchange to near milepost 77, and on new alignment to an interchange on the Audubon Parkway, if the segment is designated as part of the Interstate System. (m) Covered Heavy-duty Tow and Recovery Vehicles.-- (1) In general.--The vehicle weight limitations set forth in this section do not apply to a covered heavy- duty tow and recovery vehicle. (2) Covered heavy-duty tow and recovery vehicle defined.--In this subsection, the term ``covered heavy- duty tow and recovery vehicle'' means a vehicle that-- (A) is transporting a disabled vehicle from the place where the vehicle became disabled to the nearest appropriate repair facility; and (B) has a gross vehicle weight that is equal to or exceeds the gross vehicle weight of the disabled vehicle being transported. (n) Operation of Vehicles on Certain Highways in the State of Texas.--If any segment in the State of Texas of United States Route 59, United States Route 77, United States Route 281, United States Route 84, Texas State Highway 44, or another roadway is designated as Interstate Route 69, a vehicle that could operate legally on that segment before the date of the designation may continue to operate on that segment, without regard to any requirement under this section. (o) Certain Logging Vehicles in the State of Wisconsin.-- (1) In general.--The Secretary shall waive, with respect to a covered logging vehicle, the application of any vehicle weight limit established under this section. (2) Covered logging vehicle defined.--In this subsection, the term ``covered logging vehicle'' means a vehicle that-- (A) is transporting raw or unfinished forest products, including logs, pulpwood, biomass, or wood chips; (B) has a gross vehicle weight of not more than 98,000 pounds; (C) has not less than 6 axles; and (D) is operating on a segment of Interstate Route 39 in the State of Wisconsin from mile marker 175.8 to mile marker 189. (p) Operation of Certain Specialized Vehicles on Certain Highways in the State of Arkansas.--If any segment of United States Route 63 between the exits for highways 14 and 75 in the State of Arkansas is designated as part of the Interstate System, the single axle weight, tandem axle weight, gross vehicle weight, and bridge formula limits under subsection (a) and the width limitation under section 31113(a) of title 49 shall not apply to that segment with respect to the operation of any vehicle that could operate legally on that segment before the date of the designation. (q) Certain Logging Vehicles in the State of Minnesota.-- (1) In general.--The Secretary shall waive, with respect to a covered logging vehicle, the application of any vehicle weight limit established under this section. (2) Covered logging vehicle defined.--In this subsection, the term ``covered logging vehicle'' means a vehicle that-- (A) is transporting raw or unfinished forest products, including logs, pulpwood, biomass, or wood chips; (B) has a gross vehicle weight of not more than 99,000 pounds; (C) has not less than 6 axles; and (D) is operating on a segment of Interstate Route 35 in the State of Minnesota from mile marker 235.4 to mile marker 259.552. (r) Emergency Vehicles.-- (1) In general.--Notwithstanding subsection (a), a State shall not enforce against an emergency vehicle a vehicle weight limit (up to a maximum gross vehicle weight of 86,000 pounds) of less than-- (A) 24,000 pounds on a single steering axle; (B) 33,500 pounds on a single drive axle; (C) 62,000 pounds on a tandem axle; or (D) 52,000 pounds on a tandem rear drive steer axle. (2) Emergency vehicle defined.--In this subsection, the term ``emergency vehicle'' means a vehicle designed to be used under emergency conditions-- (A) to transport personnel and equipment; and (B) to support the suppression of fires and mitigation of other hazardous situations. (s) Natural Gas Vehicles.--A vehicle, if operated by an engine fueled primarily by natural gas, may exceed any vehicle weight limit (up to a maximum gross vehicle weight of 82,000 pounds) under this section by an amount that is equal to the difference between-- (1) the weight of the vehicle attributable to the natural gas tank and fueling system carried by that vehicle; and (2) the weight of a comparable diesel tank and fueling system. (t) Vehicles in North Dakota and Idaho.--A vehicle limited or prohibited under this section from operating on a segment of the Interstate System in the State of North Dakota and Idaho may operate on such a segment if such vehicle-- (1) has a gross vehicle weight of 129,000 pounds or less; (2) other than gross vehicle weight, complies with the single axle, tandem axle, and bridge formula limits set forth in subsection (a); and (3) is authorized to operate on such segment under [Idaho State law] the law of the relevant State. * * * * * * * ---------- TITLE 49, UNITED STATES CODE * * * * * * * SUBTITLE IV--INTERSTATE TRANSPORTATION * * * * * * * PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT FORWARDERS * * * * * * * CHAPTER 145--FEDERAL-STATE RELATIONS Sec. 14501. Federal authority over intrastate transportation (a) Motor Carriers of Passengers.-- (1) Limitation on state law.--No State or political subdivision thereof and no interstate agency or other political agency of 2 or more States shall enact or enforce any law, rule, regulation, standard, or other provision having the force and effect of law relating to-- (A) scheduling of interstate or intrastate transportation (including discontinuance or reduction in the level of service) provided by a motor carrier of passengers subject to jurisdiction under subchapter I of chapter 135 of this title on an interstate route; (B) the implementation of any change in the rates for such transportation or for any charter transportation except to the extent that notice, not in excess of 30 days, of changes in schedules may be required; or (C) the authority to provide intrastate or interstate charter bus transportation. This paragraph shall not apply to intrastate commuter bus operations, or to intrastate bus transportation of any nature in the State of Hawaii. (2) Matters not covered.--Paragraph (1) shall not restrict the safety regulatory authority of a State with respect to motor vehicles, the authority of a State to impose highway route controls or limitations based on the size or weight of the motor vehicle, or the authority of a State to regulate carriers with regard to minimum amounts of financial responsibility relating to insurance requirements and self-insurance authorization. (b) Freight Forwarders and Brokers.-- (1) General rule.--Subject to paragraph (2) of this subsection, no State or political subdivision thereof and no intrastate agency or other political agency of 2 or more States shall enact or enforce any law, rule, regulation, standard, or other provision having the force and effect of law relating to intrastate rates, intrastate routes, or intrastate services of any freight forwarder or broker. (2) Continuation of Hawaii's authority.--Nothing in this subsection and the amendments made by the Surface Freight Forwarder Deregulation Act of 1986 shall be construed to affect the authority of the State of Hawaii to continue to regulate a motor carrier operating within the State of Hawaii. (c) Motor Carriers of Property.-- (1) General rule.--Except as provided in [paragraphs (2) and (3)] paragraphs (3) and (4), a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier (other than a carrier affiliated with a direct air carrier covered by section 41713(b)(4)) or any motor private carrier, broker, or freight forwarder with respect to the transportation of property. (2) Additional limitation.-- (A) In general.--A State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law prohibiting employees whose hours of service are subject to regulation by the Secretary under section 31502 from working to the full extent permitted or at such times as permitted under such section, or imposing any additional obligations on motor carriers if such employees work to the full extent or at such times as permitted under such section, including any related activities regulated under part 395 of title 49, Code of Federal Regulations. (B) Statutory construction.--Nothing in this paragraph may be construed to limit the provisions of paragraph (1). [(2)] (3) Matters not covered.--[Paragraph (1)--] Paragraphs (1) and (2)-- (A) shall not restrict the safety regulatory authority of a State with respect to motor vehicles, the authority of a State to impose highway route controls or limitations based on the size or weight of the motor vehicle or the hazardous nature of the cargo, or the authority of a State to regulate motor carriers with regard to minimum amounts of financial responsibility relating to insurance requirements and self-insurance authorization; (B) does not apply to the intrastate transportation of household goods; and (C) does not apply to the authority of a State or a political subdivision of a State to enact or enforce a law, regulation, or other provision relating to the regulation of tow truck operations performed without the prior consent or authorization of the owner or operator of the motor vehicle. [(3)] (4) State standard transportation practices.-- (A) Continuation.--[Paragraph (1)] Paragraphs (1) and (2) shall not affect any authority of a State, political subdivision of a State, or political authority of 2 or more States to enact or enforce a law, regulation, or other provision, with respect to the intrastate transportation of property by motor carriers, related to-- (i) uniform cargo liability rules, (ii) uniform bills of lading or receipts for property being transported, (iii) uniform cargo credit rules, (iv) antitrust immunity for joint line rates or routes, classifications, mileage guides, and pooling, or (v) antitrust immunity for agent-van line operations (as set forth in section 13907), if such law, regulation, or provision meets the requirements of subparagraph (B). (B) Requirements.--A law, regulation, or provision of a State, political subdivision, or political authority meets the requirements of this subparagraph if-- (i) the law, regulation, or provision covers the same subject matter as, and compliance with such law, regulation, or provision is no more burdensome than compliance with, a provision of this part or a regulation issued by the Secretary or the Board under this part; and (ii) the law, regulation, or provision only applies to a carrier upon request of such carrier. (C) Election.--Notwithstanding any other provision of law, a carrier affiliated with a direct air carrier through common controlling ownership may elect to be subject to a law, regulation, or provision of a State, political subdivision, or political authority under this paragraph. [(4)] (5) Nonapplicability to Hawaii.--This subsection shall not apply with respect to the State of Hawaii. [(5)] (6) Limitation on statutory construction.-- Nothing in this section shall be construed to prevent a State from requiring that, in the case of a motor vehicle to be towed from private property without the consent of the owner or operator of the vehicle, the person towing the vehicle have prior written authorization from the property owner or lessee (or an employee or agent thereof) or that such owner or lessee (or an employee or agent thereof) be present at the time the vehicle is towed from the property, or both. (d) Pre-Arranged Ground Transportation.-- (1) In general.--No State or political subdivision thereof and no interstate agency or other political agency of 2 or more States shall enact or enforce any law, rule, regulation, standard or other provision having the force and effect of law requiring a license or fee on account of the fact that a motor vehicle is providing pre-arranged ground transportation service if the motor carrier providing such service-- (A) meets all applicable registration requirements under chapter 139 for the interstate transportation of passengers; (B) meets all applicable vehicle and intrastate passenger licensing requirements of the State or States in which the motor carrier is domiciled or registered to do business; and (C) is providing such service pursuant to a contract for-- (i) transportation by the motor carrier from one State, including intermediate stops, to a destination in another State; or (ii) transportation by the motor carrier from one State, including intermediate stops in another State, to a destination in the original State. (2) Intermediate stop defined.--In this section, the term ``intermediate stop'', with respect to transportation by a motor carrier, means a pause in the transportation in order for one or more passengers to engage in personal or business activity, but only if the driver providing the transportation to such passenger or passengers does not, before resuming the transportation of such passenger (or at least 1 of such passengers), provide transportation to any other person not included among the passengers being transported when the pause began. (3) Matters not covered.--Nothing in this subsection shall be construed-- (A) as subjecting taxicab service to regulation under chapter 135 or section 31138; (B) as prohibiting or restricting an airport, train, or bus terminal operator from contracting to provide preferential access or facilities to one or more providers of pre- arranged ground transportation service; and (C) as restricting the right of any State or political subdivision of a State to require, in a nondiscriminatory manner, that any individual operating a vehicle providing prearranged ground transportation service originating in the State or political subdivision have submitted to pre-licensing drug testing or a criminal background investigation of the records of the State in which the operator is domiciled, by the State or political subdivision by which the operator is licensed to provide such service, or by the motor carrier providing such service, as a condition of providing such service. * * * * * * * ---------- TITLE 46, UNITED STATES CODE * * * * * * * SUBTITLE II--VESSELS AND SEAMEN * * * * * * * PART G--MERCHANT SEAMEN PROTECTION AND RELIEF * * * * * * * CHAPTER 103--FOREIGN AND INTERCOASTAL VOYAGES * * * * * * * Sec. 10313. Wages (a) A seaman's entitlement to wages and provisions begins when the seaman begins work or when specified in the agreement required by section 10302 of this title for the seaman to begin work or be present on board, whichever is earlier. (b) Wages are not dependent on the earning of freight by the vessel. When the loss or wreck of the vessel ends the service of a seaman before the end of the period contemplated in the agreement, the seaman is entitled to wages for the period of time actually served. The seaman shall be deemed a destitute seaman under section 11104 of this title. This subsection applies to a fishing or whaling vessel but not a yacht. (c) When a seaman who has signed an agreement is discharged improperly before the beginning of the voyage or before one month's wages are earned, without the seaman's consent and without the seaman's fault justifying discharge, the seaman is entitled to receive from the master or owner, in addition to wages earned, one month's wages as compensation. (d) A seaman is not entitled to wages for a period during which the seaman-- (1) unlawfully failed to work when required, after the time fixed by the agreement for the seaman to begin work; or (2) lawfully was imprisoned for an offense, unless a court hearing the case otherwise directs. (e) After the beginning of the voyage, a seaman is entitled to receive from the master, on demand, one-half of the balance of wages earned and unpaid at each port at which the vessel loads or delivers cargo during the voyage. A demand may not be made before the expiration of 5 days from the beginning of the voyage, not more than once in 5 days, and not more than once in the same port on the same entry. If a master does not comply with this subsection, the seaman is released from the agreement and is entitled to payment of all wages earned. Notwithstanding a release signed by a seaman under section 10312 of this title, a court having jurisdiction may set aside, for good cause shown, the release and take action that justice requires. This subsection does not apply to a fishing or whaling vessel or a yacht. (f) At the end of a voyage, the master shall pay each seaman the balance of wages due the seaman within 24 hours after the cargo has been discharged or within 4 days after the seaman is discharged, whichever is earlier. When a seaman is discharged and final payment of wages is delayed for the period permitted by this subsection, the seaman is entitled at the time of discharge to one-third of the wages due the seaman. (g)(1) Subject to paragraph (2), when payment is not made as provided under subsection (f) of this section without sufficient cause, the master or owner shall pay to the seaman 2 days' wages for each day payment is delayed. (2) The total amount required to be paid under paragraph (1) with respect to [all claims in a class action suit by seamen] each claim by a seaman on a passenger vessel capable of carrying more than 500 passengers for wages under this section against a vessel master, owner, or operator or the employer of [the seamen] the seaman shall not exceed ten times the unpaid wages that are the subject of the claims. (3) A [class action] suit for wages under this subsection must be commenced within three years after the later of-- (A) the date of the end of the last voyage for which the wages are claimed; or (B) the receipt[, by a seaman who is a claimant in the suit,] by the seaman of a payment of wages that are the subject of the suit that is made in the ordinary course of employment. (h) Subsections (f) and (g) of this section do not apply to a fishing or whaling vessel or a yacht. (i) This section applies to a seaman on a foreign vessel when in a harbor of the United States. The courts are available to the seaman for the enforcement of this section. * * * * * * * CHAPTER 105--COASTWISE VOYAGES * * * * * * * Sec. 10504. Wages (a) After the beginning of a voyage, a seaman is entitled to receive from the master, on demand, one-half of the balance of wages earned and unpaid at each port at which the vessel loads or delivers cargo during the voyage. A demand may not be made before the expiration of 5 days from the beginning of the voyage, not more than once in 5 days, and not more than once in the same port on the same entry. If a master does not comply with this subsection, the seaman is released from the agreement required by section 10502 of this title and is entitled to payment of all wages earned. Notwithstanding a release signed by a seaman under section 10312 of this title, a court having jurisdiction may set aside, for good cause shown, the release and take action that justice requires. This subsection does not apply to a fishing or whaling vessel or a yacht. (b) The master shall pay a seaman the balance of wages due the seaman within 2 days after the termination of the agreement required by section 10502 of this title or when the seaman is discharged, whichever is earlier. (c)(1) Subject to subsection (d), and except as provided in paragraph (2), when payment is not made as provided under subsection (b) of this section without sufficient cause, the master or owner shall pay to the seaman 2 days' wages for each day payment is delayed. (2) The total amount required to be paid under paragraph (1) with respect to [all claims in a class action suit by seamen] each claim by a seaman on a passenger vessel capable of carrying more than 500 passengers for wages under this section against a vessel master, owner, or operator or the employer of [the seamen] the seaman shall not exceed ten times the unpaid wages that are the subject of the claims. (3) A [class action] suit for wages under this subsection must be commenced within three years after the later of-- (A) the date of the end of the last voyage for which the wages are claimed; or (B) the receipt[, by a seaman who is a claimant in the suit] by the seaman, of a payment of wages that are the subject of the suit that is made in the ordinary course of employment. (d) Subsections (b) and (c) of this section do not apply to: (1) a vessel engaged in coastwise commerce. (2) a yacht. (3) a fishing vessel. (4) a whaling vessel. (e) This section applies to a seaman on a foreign vessel when in harbor of the United States. The courts are available to the seaman for the enforcement of this section. (f) Deposits in Seaman Account.--On written request signed by the seaman, a seaman employed on a passenger vessel capable of carrying more than 500 passengers may authorize, the master, owner, or operator of the vessel, or the employer of the seaman, to make deposits of wages of the seaman into a checking, savings, investment, or retirement account, or other account to secure a payroll or debit card for the seaman if-- (1) the wages designated by the seaman for such deposit are deposited in a United States or international financial institution designated by the seaman; (2) such deposits in the financial institution are fully guaranteed under commonly accepted international standards by the government of the country in which the financial institution is licensed; (3) a written wage statement or pay stub, including an accounting of any direct deposit, is delivered to the seaman no less often than monthly; and (4) while on board the vessel on which the seaman is employed, the seaman is able to arrange for withdrawal of all funds on deposit in the account in which the wages are deposited. * * * * * * * ---------- UNITED STATES HOUSING ACT OF 1937 TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING * * * * * * * SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS. (a) Purposes.--The purpose of this section is to provide assistance to public housing agencies for the purposes of-- (1) improving the living environment for public housing residents of severely distressed public housing projects through the demolition, rehabilitation, reconfiguration, or replacement of obsolete public housing projects (or portions thereof); (2) revitalizing sites (including remaining public housing dwelling units) on which such public housing projects are located and contributing to the improvement of the surrounding neighborhood; (3) providing housing that will avoid or decrease the concentration of very low-income families; and (4) building sustainable communities. It is also the purpose of this section to provide assistance to smaller communities for the purpose of facilitating the development of affordable housing for low-income families that is undertaken in connection with a main street revitalization or redevelopment project in such communities. (b) Grant Authority.--The Secretary may make grants as provided in this section to applicants whose applications for such grants are approved by the Secretary under this section. (c) Contribution Requirement.-- (1) In general.--The Secretary may not make any grant under this section to any applicant unless the applicant certifies to the Secretary that the applicant will-- (A) supplement the aggregate amount of assistance provided under this section with an amount of funds from sources other than this section equal to not less than 5 percent of the amount provided under this section; and (B) in addition to supplemental amounts provided in accordance with subparagraph (A), if the applicant uses more than 5 percent of the amount of assistance provided under this section for services under subsection (d)(1)(L), provide supplemental funds from sources other than this section in an amount equal to the amount so used in excess of 5 percent. (2) Supplemental funds.--In calculating the amount of supplemental funds provided by a grantee for purposes of paragraph (1), the grantee may include amounts from other Federal sources, any State or local government sources, any private contributions, the value of any donated material or building, the value of any lease on a building, the value of the time and services contributed by volunteers, and the value of any other in-kind services or administrative costs provided. (3) Exemption.--If assistance provided under this title will be used only for providing tenant-based assistance under section 8 or demolition of public housing (without replacement), the Secretary may exempt the applicant from the requirements under paragraph (1)(A). (d) Eligible Activities.-- (1) In general.--Grants under this section may be used for activities to carry out revitalization programs for severely distressed public housing, including-- (A) architectural and engineering work; (B) redesign, rehabilitation, or reconfiguration of a severely distressed public housing project, including the site on which the project is located; (C) the demolition, sale, or lease of the site, in whole or in part; (D) covering the administrative costs of the applicant, which may not exceed such portion of the assistance provided under this section as the Secretary may prescribe; (E) payment of reasonable legal fees; (F) providing reasonable moving expenses for residents displaced as a result of the revitalization of the project; (G) economic development activities that promote the economic self-sufficiency of residents under the revitalization program, including a Neighborhood Networks initiative for the establishment and operation of computer centers in public housing for the purpose of enhancing the self-sufficiency, employability, an economic self-reliance of public housing residents by providing them with onsite computer access and training resources; (H) necessary management improvements; (I) leveraging other resources, including additional housing resources, retail supportive services, jobs, and other economic development uses on or near the project that will benefit future residents of the site; (J) replacement housing (including appropriate homeownership downpayment assistance for displaced residents or other appropriate replacement homeownership activities) and rental assistance under section 8; (K) transitional security activities; and (L) necessary supportive services, except that not more than 15 percent of the amount of any grant may be used for activities under this paragraph. (2) Endowment trust for supportive services.--In using grant amounts under this section made available in fiscal year 2000 or thereafter for supportive services under paragraph (1)(L), a public housing agency may deposit such amounts in an endowment trust to provide supportive services over such period of time as the agency determines. Such amounts shall be provided to the agency by the Secretary in a lump sum when requested by the agency, shall be invested in a wise and prudent manner, and shall be used (together with any interest thereon earned) only for eligible uses pursuant to paragraph (1)(L). A public housing agency may use amounts in an endowment trust under this paragraph in conjunction with other amounts donated or otherwise made available to the trust for similar purposes. (e) Application and Selection.-- (1) Application.--An application for a grant under this section shall demonstrate the appropriateness of the proposal in the context of the local housing market relative to other alternatives, and shall include such other information and be submitted at such time and in accordance with such procedures, as the Secretary shall prescribe. (2) Selection criteria.--The Secretary shall establish criteria for the award of grants under this section and shall include among the factors-- (A) the relationship of the grant to the public housing agency plan for the applicant and how the grant will result in a revitalized site that will enhance the neighborhood in which the project is located and enhance economic opportunities for residents; (B) the capability and record of the applicant public housing agency, or any alternative management entity for the agency, for managing redevelopment or modernization projects, meeting construction timetables, and obligating amounts in a timely manner; (C) the extent to which the applicant could undertake such activities without a grant under this section; (D) the extent of involvement of residents, State and local governments, private service providers, financing entities, and developers, in the development and ongoing implementation of a revitalization program for the project, except that the Secretary may not award a grant under this section unless the applicant has involved affected public housing residents at the beginning and during the planning process for the revitalization program, prior to submission of an application; (E) the need for affordable housing in the community; (F) the supply of other housing available and affordable to families receiving tenant-based assistance under section 8; (G) the amount of funds and other resources to be leveraged by the grant; (H) the extent of the need for, and the potential impact of, the revitalization program; (I) the extent to which the plan minimizes permanent displacement of current residents of the public housing site who wish to remain in or return to the revitalized community and provides for community and supportive services to residents prior to any relocation; (J) the extent to which the plan sustains or creates more project-based housing units available to persons eligible for public housing in markets where the plan shows there is demand for the maintenance or creation of such units; (K) the extent to which the plan gives to existing residents priority for occupancy in dwelling units which are public housing dwelling units, or for residents who can afford to live in other units, priority for those units in the revitalized community; and (L) such other factors as the Secretary considers appropriate. (3) Applicability of selection criteria.--The Secretary may determine not to apply certain of the selection criteria established pursuant to paragraph (2) when awarding grants for demolition only, tenant- based assistance only, or other specific categories of revitalization activities. This section may not be construed to require any application for a grant under this section to include demolition of public housing or to preclude use of grant amounts for rehabilitation or rebuilding of any housing on an existing site. (f) Cost Limits.--Subject to the provisions of this section, the Secretary-- (1) shall establish cost limits on eligible activities under this section sufficient to provide for effective revitalization programs; and (2) may establish other cost limits on eligible activities under this section. (g) Disposition and Replacement.--Any severely distressed public housing disposed of pursuant to a revitalization plan and any public housing developed in lieu of such severely distressed housing, shall be subject to the provisions of section 18. Severely distressed public housing demolished pursuant to a revitalization plan shall not be subject to the provisions of section 18. (h) Administration by Other Entities.--The Secretary may require a grantee under this section to make arrangements satisfactory to the Secretary for use of an entity other than the public housing agency to carry out activities assisted under the revitalization plan, if the Secretary determines that such action will help to effectuate the purposes of this section. (i) Withdrawal of Funding.--If a grantee under this section does not proceed within a reasonable timeframe, in the determination of the Secretary, the Secretary shall withdraw any grant amounts under this section that have not been obligated by the public housing agency. The Secretary shall redistribute any withdrawn amounts to one or more other applicants eligible for assistance under this section or to one or more other entities capable of proceeding expeditiously in the same locality in carrying out the revitalization plan of the original grantee. (j) Definitions.--For purposes of this section, the following definitions shall apply: (1) Applicant.--The term ``applicant'' means-- (A) any public housing agency that is not designated as troubled pursuant to section 6(j)(2); (B) any public housing agency for which a private housing management agent has been selected, or a receiver has been appointed, pursuant to section 6(j)(3); and (C) any public housing agency that is designated as troubled pursuant to section 6(j)(2) and that-- (i) is so designated principally for reasons that will not affect the capacity of the agency to carry out a revitalization program; (ii) is making substantial progress toward eliminating the deficiencies of the agency; or (iii) is otherwise determined by the Secretary to be capable of carrying out a revitalization program. (2) Severely distressed public housing.--The term ``severely distressed public housing'' means a public housing project (or building in a project)-- (A) that-- (i) requires major redesign, reconstruction or redevelopment, or partial or total demolition, to correct serious deficiencies in the original design (including inappropriately high population density), deferred maintenance, physical deterioration or obsolescence of major systems and other deficiencies in the physical plant of the project; (ii) is a significant contributing factor to the physical decline of and disinvestment by public and private entities in the surrounding neighborhood; (iii)(I) is occupied predominantly by families who are very low-income families with children, are unemployed, and dependent on various forms of public assistance; (II) has high rates of vandalism and criminal activity (including drug- related criminal activity) in comparison to other housing in the area; or (III) is lacking in sufficient appropriate transportation, supportive services, economic opportunity, schools, civic and religious institutions, and public services, resulting in severe social distress in the project; (iv) cannot be revitalized through assistance under other programs, such as the program for capital and operating assistance for public housing under this Act, or the programs under sections 9 and 14 of the United States Housing Act of 1937 (as in effect before the effective date under under section 503(a) the Quality Housing and Work Responsibility Act of 1998), because of cost constraints and inadequacy of available amounts; and (v) in the case of individual buildings, is, in the Secretary's determination, sufficiently separable from the remainder of the project of which the building is part to make use of the building feasible for purposes of this section; or (B) that was a project described in subparagraph (A) that has been legally vacated or demolished, but for which the Secretary has not yet provided replacement housing assistance (other than tenant-based assistance). (3) Supportive services.--The term ``supportive services'' includes all activities that will promote upward mobility, self-sufficiency, and improved quality of life for the residents of the public housing project involved, including literacy training, job training, day care, transportation, and economic development activities. (k) Grantee Reporting.--The Secretary shall require grantees of assistance under this section to report the sources and uses of all amounts expended for revitalization plans. (l) Annual Report.--The Secretary shall submit to the Congress an annual report setting forth-- (1) the number, type, and cost of public housing units revitalized pursuant to this section; (2) the status of projects identified as severely distressed public housing; (3) the amount and type of financial assistance provided under and in conjunction with this section, including a specification of the amount and type of assistance provided under subsection (n); (4) the types of projects funded, and number of affordable housing dwelling units developed with, grants under subsection (n); and (5) the recommendations of the Secretary for statutory and regulatory improvements to the program established by this section. (m) Funding.-- (1) Authorization of appropriations.--There are authorized to be appropriated for grants under this section $574,000,000 for [fiscal year 2017.] fiscal year 2018. (2) Technical assistance and program oversight.--Of the amount appropriated pursuant to paragraph (1) for any fiscal year, the Secretary may use up to 2 percent for technical assistance or contract expertise, including assistance in connection with the establishment and operation of computer centers in public housing through the Neighborhoods Networks initiative described in subsection (d)(1)(G). Such assistance or contract expertise may be provided directly or indirectly by grants, contracts, or cooperative agreements, and shall include training, and the cost of necessary travel for participants in such training, by or to officials of the Department of Housing and Urban Development, of public housing agencies, and of residents. (3) Set-aside for main street housing grants.--Of the amount appropriated pursuant to paragraph (1) for any fiscal year, the Secretary shall provide up to 5 percent for use only for grants under subsection (n). (n) Grants for Assisting Affordable Housing Developed Through Main Street Projects in Smaller Communities.-- (1) Authority and use of grant amounts.--The Secretary may make grants under this subsection to smaller communities. Such grant amounts shall be used by smaller communities only to provide assistance to carry out eligible affordable housing activities under paragraph (4) in connection with an eligible project under paragraph (2). (2) Eligible project.--For purposes of this subsection, the term ``eligible project'' means a project that-- (A) the Secretary determines, under the criteria established pursuant to paragraph (3), is a main street project; (B) is carried out within the jurisdiction of a smaller community receiving the grant; and (C) involves the development of affordable housing that is located in the commercial area that is the subject of the project. (3) Main street projects.--The Secretary shall establish requirements for a project to be considered a main street project for purposes of this section, which shall require that the project-- (A) has as its purpose the revitalization or redevelopment of a historic or traditional commercial area; (B) involves investment, or other participation, by the government for, and private entities in, the community in which the project is carried out; and (C) complies with such historic preservation guidelines or principles as the Secretary shall identify to preserve significant historic or traditional architectural and design features in the structures or area involved in the project. (4) Eligible affordable housing activities.--For purposes of this subsection, the activities described in subsection (d)(1) shall be considered eligible affordable housing activities, except that-- (A) such activities shall be conducted with respect to affordable housing rather than with respect to severely distressed public housing projects; and (B) eligible affordable housing activities under this subsection shall not include the activities described in subparagraphs (B) through (E), (J), or (K) of subsection (d)(1). (5) Maximum grant amount.--A grant under this subsection for a fiscal year for a single smaller community may not exceed $1,000,000. (6) Contribution requirement.--A smaller community applying for a grant under this subsection shall be considered an applicant for purposes of subsection (c) (relating to contributions by applicants), except that-- (A) such supplemental amounts shall be used only for carrying out eligible affordable housing activities; and (B) paragraphs (1)(B) and (3) shall not apply to grants under this subsection. (7) Applications and selection.-- (A) Application.--Pursuant to subsection (e)(1), the Secretary shall provide for smaller communities to apply for grants under this subsection, except that the Secretary may establish such separate or additional criteria for applications for such grants as may be appropriate to carry out this subsection. (B) Selection criteria.--The Secretary shall establish selection criteria for the award of grants under this subsection, which shall be based on the selection criteria established pursuant to subsection (e)(2), with such changes as may be appropriate to carry out the purposes of this subsection. (8) Cost limits.--The cost limits established pursuant to subsection (f) shall apply to eligible affordable housing activities assisted with grant amounts under this subsection. (9) Inapplicability of other provisions.--The provisions of subsections (g) (relating to disposition and replacement of severely distressed public housing), and (h) (relating to administration of grants by other entities), shall not apply to grants under this subsection. (10) Reporting.--The Secretary shall require each smaller community receiving a grant under this subsection to submit a report regarding the use of all amounts provided under the grant. (11) Definitions.--For purposes of this subsection, the following definitions shall apply: (A) Affordable housing.--The term ``affordable housing'' means rental or homeownership dwelling units that-- (i) are made available for initial occupancy to low-income families, with a subset of units made available to very- and extremely-low income families; and (ii) are subject to the same rules regarding occupant contribution toward rent or purchase and terms of rental or purchase as dwelling units in public housing projects assisted with a grant under this section. (B) Smaller community.--The term ``smaller community'' means a unit of general local government (as such term is defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) that-- (i) has a population of 50,000 or fewer; and (ii)(I) is not served by a public housing agency; or (II) is served by a single public housing agency, which agency administers 100 or fewer public housing dwelling units. (o) Sunset.--No assistance may be provided under this section after [September 30, 2017.] September 30, 2018. * * * * * * * ---------- MULTIFAMILY ASSISTED HOUSING REFORM AND AFFORDABILITY ACT OF 1997 * * * * * * * TITLE V--HUD MULTIFAMILY HOUSING REFORM * * * * * * * Subtitle C--Enforcement Provisions * * * * * * * Part 2--FHA Multifamily Provisions * * * * * * * SEC. 579. TERMINATION. (a) Repeals.-- (1) Mark-to-market program.--Subtitle A (except for section 524) is repealed effective [October 1, 2017] October 1, 2022. (2) OMHAR.--Subtitle D (except for this section) is repealed effective October 1, 2004. (b) Exception.--Notwithstanding the repeal under subsection (a), the provisions of subtitle A (as in effect immediately before such repeal) shall apply with respect to projects and programs for which binding commitments have been entered into under this Act before [October 1, 2017] October 1, 2022. (c) Termination of Director and Office.--The Office of Multifamily Housing Assistance Restructuring and the position of Director of such Office shall terminate at the end of September 30, 2004. (d) Transfer of Authority.--Effective upon the repeal of subtitle D under subsection (a)(2) of this section, all authority and responsibilities to administer the program under subtitle A are transferred to the Secretary. * * * * * * * ---------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT APPROPRIATIONS ACT, 2012 TITLE II DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT APPROPRIATIONS ACT, 2012 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT * * * * * * * RENTAL ASSISTANCE DEMONSTRATION To conduct a demonstration designed to preserve and improve public housing and certain other multifamily housing through the voluntary conversion of properties with assistance under section 9 of the United States Housing Act of 1937, (hereinafter, ``the Act''), or the moderate rehabilitation program under section 8(e)(2) of the Act, to properties with assistance under a project-based subsidy contract under section 8 of the Act, which shall be eligible for renewal under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, or assistance under section 8(o)(13) of the Act, the Secretary may transfer amounts provided through contracts under section 8(e)(2) of the Act or under the headings ``Public Housing Capital Fund'' and ``Public Housing Operating Fund'' to the headings ``Tenant-Based Rental Assistance'' or ``Project-Based Rental Assistance'': Provided, That the initial long-term contract under which converted assistance is made available may allow for rental adjustments only by an operating cost factor established by the Secretary, and shall be subject to the availability of appropriations for each year of such term: Provided further, That project applications may be received under this demonstration until September 30, 2020: Provided further, That any increase in cost for ``Tenant-Based Rental Assistance'' or ``Project-Based Rental Assistance'' associated with such conversion in excess of amounts made available under this heading shall be equal to amounts transferred from ``Public Housing Capital Fund'' and ``Public Housing Operating Fund'' or other account from which it was transferred: Provided further, That not more than 225,000 units currently receiving assistance under section 9 or section 8(e)(2) of the Act shall be converted under the authority provided under this heading: Provided further, That tenants of such properties with assistance converted from assistance under section 9 shall, at a minimum, maintain the same rights under such conversion as those provided under sections 6 and 9 of the Act: Provided further, That the Secretary shall select properties from applications for conversion as part of this demonstration through a competitive process: Provided further, That in establishing criteria for such competition, the Secretary shall seek to demonstrate the feasibility of this conversion model to recapitalize and operate public housing properties (1) in different markets and geographic areas, (2) within portfolios managed by public housing agencies of varying sizes, and (3) by leveraging other sources of funding to recapitalize properties: Provided further, That the Secretary shall provide an opportunity for public comment on draft eligibility and selection criteria and procedures that will apply to the selection of properties that will participate in the demonstration: Provided further, That the Secretary shall provide an opportunity for comment from residents of properties to be proposed for participation in the demonstration to the owners or public housing agencies responsible for such properties: Provided further, That the Secretary may waive or specify alternative requirements for (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment) any provision of section 8(o)(13) or any provision that governs the use of assistance from which a property is converted under the demonstration or funds made available under the headings of ``Public Housing Capital Fund'', ``Public Housing Operating Fund'', and ``Project-Based Rental Assistance'', under this Act or any prior Act or any Act enacted during the period of conversion of assistance under the demonstration for properties with assistance converted under the demonstration, upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective conversion of assistance under the demonstration: Provided further, That the Secretary shall publish by notice in the Federal Register any waivers or alternative requirements pursuant to the previous proviso no later than 10 days before the effective date of such notice: Provided further, That the demonstration may proceed after the Secretary publishes notice of its terms in the Federal Register: Provided further, That notwithstanding sections 3 and 16 of the Act, the conversion of assistance under the demonstration shall not be the basis for re-screening or termination of assistance or eviction of any tenant family in a property participating in the demonstration, and such a family shall not be considered a new admission for any purpose, including compliance with income targeting requirements: Provided further, That in the case of a property with assistance converted under the demonstration from assistance under section 9 of the Act, section 18 of the Act shall not apply to a property converting assistance under the demonstration for all or substantially all of its units, the Secretary shall require ownership or control of assisted units by a public or nonprofit entity except as determined by the Secretary to be necessary pursuant to foreclosure, bankruptcy, or termination and transfer of assistance for material violations or substantial default, in which case the priority for ownership or control shall be provided to a capable public or nonprofit entity, then a capable entity, as determined by the Secretary, shall require long-term renewable use and affordability restrictions for assisted units, and may allow ownership to be transferred to a for-profit entity to facilitate the use of tax credits only if the public housing agency [preserves its interest] or a nonprofit entity preserves an interest in the property in a manner approved by the Secretary, and upon expiration of the initial contract and each renewal contract, the Secretary shall offer and the owner of the property shall accept renewal of the contract subject to the terms and conditions applicable at the time of renewal and the availability of appropriations each year of such renewal: Provided further, That the Secretary may permit transfer of assistance at or after conversion under the demonstration to replacement units subject to the requirements in the previous proviso: Provided further, That the Secretary may establish the requirements for converted assistance under the demonstration through contracts, use agreements, regulations, or other means: Provided further, That the Secretary shall assess and publish findings regarding the impact of the conversion of assistance under the demonstration on the preservation and improvement of public housing, the amount of private sector leveraging as a result of such conversion, and the effect of such conversion on tenants: [Provided further, That for fiscal year 2012 and hereafter, owners of properties assisted under section 101 of the Housing and Urban Development Act of 1965, section 236(f)(2) of the National Housing Act, or section 8(e)(2) of the United States Housing Act of 1937, for which an event after October 1, 2006 has caused or results in the termination of rental assistance or affordability restrictions and the issuance of tenant protection vouchers under section 8(o) of the Act, shall be eligible, subject to requirements established by the Secretary, including but not limited to tenant consultation procedures, for conversion of assistance available for such vouchers to assistance under a long-term project-based subsidy contract under section 8 of the Act, which shall have a term of no less than 20 years, with rent adjustments only by an operating cost factor established by the Secretary, which shall be eligible for renewal under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), or, subject to agreement of the administering public housing agency, to assistance under section 8(o)(13) of the Act, to which the limitation under subsection (B) of section 8(o)(13) of the Act shall not apply and for which the Secretary of Housing and Urban Development may waive or alter the provisions of subparagraphs (C) and (D) of section 8(o)(13) of the Act:] Provided further, That for fiscal year 2012 and hereafter, owners of properties assisted or previously assisted under section 101 of the Housing and Urban Development Act of 1965, section 236(f)(2) of the National Housing Act, or section 8(e)(2) of the United States Housing Act of 1937, for which a contract expires or terminates due to prepayment on or after October 1, 2006, has caused or results in the termination of rental assistance or affordability restrictions or both and the issuance of tenant protection vouchers under section 8(o) or section 8(t) of the Act, or with a project rental assistance contract under section 202(c)(2) of Housing Act of 1959, shall be eligible, subject to requirements established by the Secretary, including but not limited to tenant consultation procedures, for conversion of assistance available or provided for such vouchers or assistance contracts, to assistance under a long-term project-based subsidy contract under section 8 of the Act, which shall have a term of no less than 20 years, which shall have initial rents set at comparable market rents for the market area, with subsequent rent adjustments only by an operating cost factor established by the Secretary, and which shall be eligible for renewal under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), or, subject to agreement of the administering public housing agency, to assistance under section 8(o)(13) of the Act, to which the limitation under subparagraph (B) of section 8(o)(13) of the Act shall not apply and for which the Secretary may waive or alter the provisions of subparagraphs (C) and (D) of section 8(o)(13) of the Act (``Second Component'' herein): Provided further, That conversions of assistance under the Second Component may not be the basis for re-screening or termination of assistance or eviction of any tenant family in a property participating in the demonstration: Provided further, That amounts made available under the heading ``Rental Housing Assistance'' during the period of conversion under the [previous proviso shall be available for project-based subsidy contracts entered into pursuant to the previous proviso:] Second Component, except for conversion of section 202 project rental assistance contracts, shall be available for project-based subsidy contracts entered into pursuant to the Second Component: Provided further, That amounts, including contract authority, recaptured from contracts following a conversion under the [previous two provisos] Second Component, except for conversion of section 202 project rental assistance contracts, are hereby rescinded and an amount of additional new budget authority, equivalent to the amount rescinded is hereby appropriated, to remain available until expended for such conversions: Provided further, That the Secretary may transfer amounts made available under the heading ``Rental Housing Assistance'', amounts made available for tenant protection vouchers under the heading ``Tenant-Based Rental Assistance'' and specifically associated with any such conversions, and amounts made available under the previous proviso as needed to the account under the ``Project- Based Rental Assistance'' heading to facilitate conversion under the [three previous provisos] Second Component, except for conversion of section 202 project rental assistance contracts, and any increase in cost for ``Project-Based Rental Assistance'' associated with such conversion shall be equal to amounts so transferred: Provided further, That the Secretary may transfer amounts made available under the heading ``Housing for the Elderly'' to the accounts under the headings ``Project- Based Rental Assistance'' or ``Tenant-Based Rental Assistance'' to facilitate any section 202 project rental assistance contract conversions under the Second Component, and any increase in cost for ``Project-Based Rental Assistance'' or ``Tenant-Based Rental Assistance'' associated with such conversion shall be equal to amounts so transferred: Provided further, That with respect to the [previous four provisos] Second Component, as applicable, the Comptroller General of the United States shall conduct a study of the long-term impact of the fiscal year 2012 and 2013 conversion of tenant protection vouchers to assistance under section 8(o)(13) of the Act on the ratio of tenant-based vouchers to project-based vouchers. * * * * * * * CHANGES IN THE APPLICATION OF EXISTING LAW Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of the House of Representatives, the following statements are submitted describing the effect of provisions in the accompanying bill which directly or indirectly change the application of existing law. TITLE I--DEPARTMENT OF TRANSPORTATION Language is included under Office of the Secretary, `Salaries and expenses' specifying certain amounts for individual offices of the Office of the Secretary and official reception and representation expenses; specifying transfer authority among offices; and allowing up to $2,500,000 in user fees to be credited to the account. Language is included under the Office of the Secretary, `Research and technology' which limits the availability of funds, changes the availability of funds, allows funds received from other entities to be credited to the account, and deems the title of the office. Language is included under the Office of the Secretary, `National surface and innovative finance bureau' which sets a notification requirement. Language is included under the Office of the Secretary, `Cyber security initiatives' which provides funds for information technology security upgrades; and changes the availability of funds. Language is included under the Office of the Secretary, `Transportation planning, research, and development' which provides funds for conducting transportation planning, research, systems development, development activities and making grants; changes the availability of funds; and specifies funding minimums for and authorities related to the Interagency Infrastructure Permitting Improvement Center. Language is included that limits operating costs and capital outlays of the Working Capital Fund for the Department of Transportation; provides that services shall be provided on a competitive basis, except for non-DOT entities; restricts the transfer for any funds to the Working Capital Fund with approval; and limits special assessments or reimbursable agreements levied against any program, project or activity funded in this Act to only those assessments or reimbursable agreements that are presented to and approved by the House and Senate Committees on Appropriations. Language is included under the Office of the Secretary, `Minority business resource center' which provides funds for financial education outreach, monitoring and modification of existing loans, and administrative expenses; and makes funds available for business opportunities related to any mode of transportation. Language is included under Office of the Secretary, `Small and disadvantaged business utilization and outreach' specifying that funds may be used for business opportunities related to any mode of transportation, and limits the availability of funds. Language is included under the Office of the Secretary, `Payments to air carriers' that allows the Secretary of Transportation to consider subsidy requirements when determining service to a community, eliminates the requirement that carriers use at least 15-passenger aircraft, prohibits funds for communities within a certain distance of a small hub airport without a cost-share, allows amounts to be made available from the Federal Aviation Administration, and allows the reimbursement of such amounts from overflight fees. Section 101 prohibits the Office of the Secretary of Transportation from approving assessments or reimbursable agreements pertaining to funds appropriated to the modal administrations in this Act, unless such assessments or agreements have completed the normal reprogramming process for Congressional notification. Section 102 sets administrative requirements of the Department's Credit Council. Section 103 allows the Department to use the Working Capital Fund to provide transit benefits to Federal employees. Section 104 allows transfers related to the `National surface and innovative finance bureau' account. Section 105 changes the deposit account for certain fees. Language is included under the Federal Aviation Administration, `Operations' that specifies funds for certain activities; limits the availability of funds; derives funds from the Airport and Airway Trust Fund; specifies amounts for certain activities; specifies transfer authorities among activities; requires various staffing plans by a certain date with financial penalties for late submissions; permits the use of funds to enter into a grant agreement with a nonprofit standard setting organization to develop aviation safety standards; prohibits the use of funds for new applicants of the second career training program; prohibits funds to plan, finalize, or implement any regulation that would promulgate new aviation user fees not specifically authorized by law; credits funds received from other entities for expenses incurred in the provision of agency services; specifies funds for the contract tower programs; prohibits funds from certain activities coordinated through the Working Capital Fund; and prohibits funds to eliminate the Contract Weather Observer program. Language is included under Federal Aviation Administration, `Facilities and equipment' that funds various activities from the Airport and Airway Trust Fund, limits the availability of funds, allows certain funds received for expenses incurred in the establishment and modernization of air navigation facilities to be credited to the account, and that requires the Secretary of Transportation to transmit a comprehensive capital investment plan for the Federal Aviation Administration, with financial penalties for a late submission. Language is included under Federal Aviation Administration, `Research, engineering, and development' that provides funds from the Airport and Airway Trust Fund; that limits the availability of funds; and that allows certain funds received for expenses incurred in research, engineering and development to be credited to the account. Language is included under Federal Aviation Administration, `Grants-in-aid for airports' that provides funds from the Airport and Airway Trust Fund, changes the availability of funds, prohibits the availability of funds for certain activities, and limits the availability of funds for certain activities. Section 110 limits the number of technical workyears at the Center for Advanced Aviation Systems Development to 600 in fiscal year 2017. Section 111 prohibits FAA from requiring airport sponsors to provide the agency `without cost' building construction, maintenance, utilities and expenses, or space in sponsor-owned buildings, except in the case of certain specified exceptions. Section 112 allows reimbursement for fees collected and credited under 49 U.S.C. 45303. Section 113 allows reimbursement of funds for providing technical assistance to foreign aviation authorities to be credited to the operations account. Section 114 prohibits the FAA from paying Sunday premium pay except in those cases where the individual actually worked on a Sunday. Section 115 prohibits FAA from using funds to purchase store gift cards or gift certificates through a government- issued credit card. Section 116 requires approval from the Assistant Secretary for Administration of the Department of Transportation for retention bonuses for any FAA employee. Section 117 requires the Secretary to block the display of an owner or operator's aircraft registration number in the Aircraft Situational Display to Industry program, upon the request of an owner or operator. Section 118 prohibits funds for more than a certain number of political appointees at the Federal Aviation Administration. Section 119 prohibits funds to increase fees pursuant to Section 44721 of title 49, U.S.C. until the FAA submits a report to the House and Senate Committees on Appropriations. Section 119A prohibits funds to close a regional operations center or reduce services unless the Administrator notifies the House and Senate Committees on Appropriations. Section 119B prohibits funds to change weight restrictions or prior permission rules at Teterboro airport in Teterboro, New Jersey. Section 119C prohibits funds to withhold funds from certain contract tower applicants. Section 119D requires FAA to take certain actions related to organization delegation authorization. Language is included under the Federal Highway Administration, `Limitation on administrative expenses' that, contingent on enactment of authorization legislation, limits the amount to be paid, together with advances and reimbursements received, for the administrative expenses of the agency. In addition to this limitation, an amount is specified that is to be made available to the Appalachian Regional Commission for administrative expenses. Language is included under the Federal Highway Administration, `Federal-aid highways' that limits the obligations for Federal-aid highways and highway safety construction programs; allows the Secretary to charge, collect and spend fees for the costs of underwriting and servicing Federal credit instruments; and provides that such amounts are in addition to administrative expenses, and not subject to any obligation limitation or limitation on administrative expenses under section 608 of title 23, U.S.C., and are available until expended. Language is included under the Federal Highway Administration, `Federal-aid highways' that liquidates contract authority from the Highway Trust Fund. Language is included under the Federal Highway Administration, `Federal-aid highways' that specifies certain unobligated balances of funds for rescission. Section 120 distributes obligation authority among Federal- aid highways programs, contingent on enactment of authorization legislation. Section 121 credits funds received by the Bureau of Transportation Statistics to the Federal-aid highways account. Section 122 provides requirements for any waiver of the Buy America Act. Section 123 requires Congressional notification before the Department provides credit assistance under section 603 and 604 of title 23, U.S.C. Section 124 requires Congressional notification before the Department provides grant assistance under section 117 of title 23, U.S.C. Section 125 prohibits termination of the Clearview font. Section 126 modifies a federal truck weight exemption to include North Dakota. Language is included under the Federal Motor Carrier Safety Administration, `Motor carrier safety operations and programs' that provides a limitation on obligations and liquidation of contract authorization; changes the availability of funds; and specifies amounts available for specific activities. Language is included under the Federal Motor Carrier Safety Administration, `Motor carrier safety grants' that provides limitation on obligations and liquidation of contract authorization; specifies amounts available for various programs; and specifies allowable activities for a highly automated commercial vehicle research and development program. Section 130 provides that funds appropriated are subject to terms and conditions included in prior appropriations Acts regarding Mexico-domiciled motor carriers. Section 131 requires the Federal Motor Carrier Safety Administration to send notices of certain violations such that the receipt of such notice is confirmed. Section 132 prohibits funds to enforce Electronic Logging Device regulations with respect to carriers transporting livestock or insects. Section 133 prohibits funds from being used to modify safety fitness determination regulations until certain conditions are met. Section 134 clarifies the preemption of certain state and local laws and regulations by federal laws and regulations and makes the preemption retroactive to 1994. Language is included under National Highway Traffic Safety Administration, `Operations and research' that provides funds for vehicle safety activities; and modifies the period of availability of certain funds. Language is included under National Highway Traffic Safety Administration, `Operations and research' that provides a limitation on obligations and a liquidation of contract authorization from the Highway Trust Fund; specifies amounts for various programs; and modifies the period of availability of certain funds. Language is included under the National Highway Traffic Safety Administration `Highway traffic safety grants' that provides a limitation on obligations; changes the availability of funds; provides a liquidation of contract authorization from the Highway Trust Fund; specifies the amounts for various programs; prohibits and limits funds for specific purposes; and requires certain Congressional notifications. Section 140 provides funding for travel and related expenses for state management reviews and highway safety core competency development training. Section 141 exempts obligation authority that was made available in previous public laws from limitations on obligations set in this Act. Section 142 prohibits funding for the national roadside survey. Section 143 prohibits funding for mandated global positioning system tracking. Language is included under Federal Railroad Administration, `Safety and operations' that provides funds and funding availability. Language is included under Federal Railroad Administration, `Railroad research and development' that provides funds and funding availability. Language is included under Federal Railroad Administration, `Railroad rehabilitation and improvement financing program' authorizing the Secretary to issue direct loans and loan guarantees under sections 501 through 504 of the Railroad Revitalization and Regulatory Reform Act and prohibiting new direct loans or loan guarantee commitments in 2017 that use Federal funds for the credit risk premium, except for funding awards under section 3028(c) of Public Law 114-94. Language is included under the Federal Railroad Administration, `Federal-State Partnership for the State of Good Repair Grants' that provides funds, provides funding availability, and allows the Secretary to withhold funding for a specified purpose. Language is included under the Federal Railroad Administration, `Consolidated Rail Infrastructure and Safety Improvements' that provides funds, provides funding availability, and allows the Secretary to withhold funding for a specified purpose. Language is included under the Federal Railroad Administration, `Northeast Corridor Grants to the National Railroad Passenger Corporation' that provides funds, provides funding availability, and specifies a funding level for activities. Language is included under the Federal Railroad Administration, `National Network Grants to the National Railroad Passenger Corporation' that provides funding, funding availability, and specifies a funding level for specified activities. Section 150 limits overtime to $35,000 per employee; allows Amtrak's president to waive this restriction for specific employees for safety or operational efficiency reasons; requires quarterly notification to the House and Senate Committees on Appropriations on waivers granted for overtime and specified information related to overtime; requires the president of Amtrak to provide a report that includes specified information on overtime payments incurred for 2017 and three prior years. Section 151 prohibits funding for high speed rail in California or for the California High Speed Rail authority or to administrator a grant with the Authority that contains a tapered matching requirement. Section 152 prohibits funds to take any actions related to high speed rail in California unless the Surface Transportation Board issues the permit for the entire project. Language is included under Federal Transit Administration, `Administrative expenses' specifying amounts for certain activities, prohibiting a permanent office of transit security, and directing the submission of the annual report on new starts. Language is included under Federal Transit Administration, `Transit formula grants' that provides a limitation on obligations from the Highway Trust Fund, and provides for the liquidation of contract authority. Language is included under Federal Transit Administration `Technical assistance and training' that specifies amounts for certain activities. Language is included under Federal Transit Administration, `Capital investment grants' that changes the period of availability of funds, and requires the Secretary to continue to administer the capital investment grant program pursuant to 49 U.S.C. 5309. Language is included under Federal Transit Administration, `Washington metropolitan area transit authority' that changes the period of availability of funds, requires the Secretary to review projects before a grant is made, requires the Secretary to determine that WMATA has placed the highest priority on safety investments and has eliminated financial management issues, requires the Secretary to place the highest priority on safety investments, and allows the Secretary to waive the requirement for cellular phone service. Section 160 exempts previously made transit obligations from limitations on obligations. Section 161 allows funds appropriated for capital investment grants and bus and bus facilities not obligated by a certain date, plus other recoveries to be available for other projects under 49 U.S.C. 5309. Section 162 allows for the transfer of prior year appropriations from older accounts to be merged into new accounts with similar, current activities. Section 163 prohibits funds for a certain fixed guideway project in Houston, Texas. Section 164 prohibits a full funding grant agreement for a project with a new starts share greater than 50 percent. Language is included under the Saint Lawrence Seaway Development Corporation that authorizes expenditures, contracts, and commitments as may be necessary. Language is included under the Saint Lawrence Seaway Development Corporation `Operations and maintenance' that provides funds derived from the Harbor Maintenance Trust Fund, and specifies a certain amount for asset renewal activities. Language is included under Maritime Administration, `Maritime security program' that provides funds and funding availability to preserve a U.S. flag merchant fleet. Language is included under Maritime Administration, `Operations and training' that provides specific funds for state maritime academies, a national security multi-mission vessel design, student incentive program payments, training ship fuel assistance payments, maritime environment and technology assistance, capital improvements at the United States Merchant Marine Academy, and the State Maritime Schools Schoolship Maintenance and Repair; and requires a report on sexual assault and harassment at the United States Merchant Marine Academy. Language is included under Maritime Administration, `Assistance to Small Shipyards' that provides funding, funding availability, Notice of Funding Availability and grant timing requirements, and specifies funds for grant administration. Language is included under Maritime Administration, `Ship Disposal' that provides funds and funding availability. Language is included under Maritime Administration, `Maritime guaranteed loan (title XI) program account' that provides funds and transfers funds to ``National Surface Transportation and Innovative Finance Bureau.'' Section 170 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. Section 171 continues a provision regarding MARAD ship disposal. Section 172 modifies penalty wages regarding foreign and intercoastal voyages and coastwise voyages. Language is included under Pipeline and Hazardous Materials Safety Administration, `Operational expenses' which provides funding for operations. Language is included under Pipeline and Hazardous Materials Safety Administration, `Hazardous materials safety' which funds hazardous and materials safety functions, limits the period of availability, allows up to $800,000 in fees collected under 49 U.S.C. 5108(g) to be deposited in the general fund of the Treasury as offsetting receipts, and credits to the appropriation for the account funds received from states, counties, other public authorities, and private sources for certain expenses. Language is included under Pipeline and Hazardous Materials Safety Administration, `Pipeline safety' which specifies amounts derived from the pipeline safety fund, the oil spill liability trust fund, and the underground natural gas storage facility safety account; and limits the period of availability. Language is included under Pipeline and Hazardous Materials Safety Administration, `Emergency preparedness grants' which specifies the amount derived from the Emergency Preparedness Fund; limits the availability of some funds; allows up to four percent of funds made available for administrative costs; prohibits funds from being obligated by anyone other than the Secretary or a designee of the Secretary; and makes prior year recoveries available for certain activities. Language is included under Office of Inspector General, `Salaries and expenses' that provides the Inspector General with all necessary authority to investigate allegations of fraud by any person or entity that is subject to regulation by the Department of Transportation, the authority to investigate unfair or deceptive practices and unfair methods of competition by domestic and foreign air carriers and ticket agents, and allows funds to be available from forfeiture proceedings. 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 a grant, letter of intent, loan commitment, loan guarantee commitment, line of credit commitment of full funding grant agreement, of $500,000 or more unless DOT gives a 3-day advance notice and a compressive list to Congress. Also requires notice of any ``quick release'' of funds from FHWA's emergency relief program. Prohibits notifications from involving funds not available for obligation. 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 Language is included under Department of Housing and Urban Development, `Management and administration' which designates funds for `Executive offices'; designates funds for `Administrative support offices'; specifies funding for shared service agreements, the office of the chief operations officer, the office of the chief financial officer, the office of the general counsel, the office of administration, the office of the chief human capital office, the office of field policy and management, the office of the chief procurement officer, the office of the departmental equal employment opportunity, the office of strategic planning and management, and the office of the chief information officer; provides flexibility to transfer any remaining funds to any office under the same heading or under the heading `Program office salaries and expenses'; allows for the transfer of a certain amount to the information technology fund; limits official reception and representation expenses to $25,000; allows funds to be used for certain administrative and non-administrative expenses; and allows funds to be used for advertising and promotional activities that directly support program activities funded in this title. Language is included under Department of Housing and Urban Development, `Program office salaries and expenses' which specifies funds for the office of public and indian housing, the office of community planning and development, the office of housing, the office of policy development and research, the office of fair housing and equal opportunity, and the office of lead hazard control and healthy homes. Language is included under Department of Housing and Urban Development, `Tenant-based rental assistance' which specifies funds for certain programs, activities and purposes and limits the use and availability of certain funds; specifies the methodology for allocation of renewal funding; directs the Secretary to provide renewal funding based on validated voucher system leasing and cost data for the prior year; prohibits funds to exceed a public housing agency's authorized level of units under contract, except for those participating in the Moving to Work demonstration; directs the Secretary, to the extent necessary, to prorate each public housing agency's (PHA) allocation; directs the Secretary to notify PHAs of their annual budget the later of 60 days after enactment of the Act or March 1, 2018; allows the Secretary to extend the notification period with the prior approval of the House and Senate appropriations committees; specifies the amounts available to the Secretary to allocate to PHAs that need additional funds and for fees; specifies the amount for additional rental subsidy due to unforeseen emergencies and portability; provides funding for public housing agencies with vouchers that were not in use during the previous 12 month period in order to be available to meet a commitment pursuant to section 8(o)(13); and provides funding for public housing agencies that despite taking reasonable measures, would otherwise be required to terminate assistance for families as a result of insufficient funding. Language is included under Department of Housing and Urban Development, `Tenant-based rental assistance' which provides funds for tenant protection vouchers; sets certain conditions for the Secretary to provide such vouchers; provides funds for residents of multi-family properties that would not otherwise have been eligible for tenant-protection vouchers; sets eligibility requirements for multi-family properties to participate in the program; sets conditions for the reissuance of vouchers, and allows the Secretary to use unobligated and recaptured funds from prior years. Language is included under Department of Housing and Urban Development, `Tenant-based rental assistance' which provides funds for administrative and other expenses of public housing agencies to administer the section 8 tenant-based rental assistance program; sets an amount to be available to PHAs that need additional funds to administer their section 8 programs, including fees to administer tenant protection assistance, disaster related vouchers, Veterans Affairs Supportive Housing vouchers and other special purpose vouchers; provides for the distribution of funds; provides for a uniform percentage decrease of amounts to be allocated if funds are not sufficient; establishes that `Moving to Work' (MTW) agencies be funded pursuant to their MTW agreements; provides funds for section 811 mainstream vouchers; specifies that the Secretary shall track special purpose vouchers including a minimum renewal amount for vouchers targeted at veterans; provides funds for rental assistance and administrative costs associated with tribal veteran vouchers subject to certain conditions; and provides funds for the modernization of PHA information technology systems and allows the Secretary to transfer amounts to the `Public housing capital fund' account for the same purpose. Language is included under Department of Housing and Urban Development, `Housing certificate fund' which rescinds prior year funds and allows the Secretary to use recaptures to fund project-based contracts and contract administrators. Language is included under Department of Housing and Urban Development, `Public housing capital fund' which specifies the total amount available for certain activities; limits the availability of funds; limits the delegation of certain waiver authorities; specifies an amount for ongoing Public Housing Financial and Physical Assessment activities of the Real Estate Assessment Center; specifies an amount for judicial receiverships, specifies an amount for emergency capital needs; specifies an amount for supportive services; specifies the amount for a Jobs-plus Pilot initiative and specifies that the initiative shall provide competitive grants; specifies that the Secretary may waive or specify alternative requirements; and specifies that the Secretary shall public notice of any waiver or alternative requirement; establishes a limitation on amounts that can be transferred; makes funds available for bonuses for high performing PHAs; and establishes requirements for notification of public housing agencies' formula allocations. Language is included under Department of Housing and Urban Development, `Public housing operating fund' which specifies the total amount available for certain activities; and modifies the period of availability. Language is included under Department of Housing and Urban Development, `Choice neighborhoods initiative' which allows the Secretary to make competitive grants for neighborhood rehabilitation; changes the availability of funds; allows funds to be used for services, development, and housing; declares funds not for ``public housing''; requires a period of affordability; requires local planning and cost share; allows local governments, tribal entities, public housing authorities and non-profits to be grantees; allows for-profits to partner and apply with a public entity; requires grantees to partner with local organizations; establishes conditions for environmental review; requires grantees to create partnerships with other local organizations; requires the Secretary to consult with other federal agencies; and allows prior year program funds and HOPE VI funds to be used for this program. Language is included under Department of Housing and Urban Development, `Family self-sufficiency' which allows the Secretary to waive or specify certain requirements, establishes entities eligible to compete for funding, allows the establishment of escrow funds, and allows the use of residual receipt accounts to hire coordinators. Language is included under Department of Housing and Urban Development, `Native American housing block grants' which limits the availability of funds; specifies the formula for allocation; specifies amounts for training and technical assistance; specifies an amount to support the inspection of Indian housing units; specifies an amount to guarantee notes and obligations as defined in section 502 of the Congressional Budget Act of 1974; specifies that grantees are to be notified of their allocation within 60 days of enactment; and makes adjustments to certain recipient allocations under certain conditions without a regulation. Language is included under Department of Housing and Urban Development, `Indian housing loan guarantee fund program account' which specifies the amount and availability of funds to subsidize total loan principal, specifies how to define the costs of modifying loans, and provides a dedicated amount for administrative expenses. Language is included under Department of Housing and Urban Development, `Housing opportunities for persons with AIDS' which limits availability of funds and sets forth certain requirements for the allocation of funds, renewal of contracts, and grantee notification. Language is included under Department of Housing and Urban Development, `Community development fund' which limits the use and availability of certain funds; specifies the allocation of certain funds; prohibits grant recipients from selling, trading or transfer funds; prohibits the provision of funds to for- profit entities unless certain conditions are met; specifies the amount made available for grants to federally-recognized Indian tribes; prohibits funding for grants under the Economic Development Initiative, Neighborhood Initiatives, Rural Innovation Fund, and Section 107 of the Housing and Community Development Act of 1974; and requires grantee notification of formula allocations within 60 days of enactment. Language is included under Department of Housing and Urban Development, `Community development loan guarantees program account' which limits the principal amount of loan guarantees, directs the Secretary to collect fees from borrowers adequate to result in credit subsidy cost of zero, and rescinds all unobligated balances of budget authority previously appropriated or recaptured under the account. Language is included under Department of Housing and Urban Development, `Home investment partnerships program' which limits the availability of funds; specifies the allocation of certain funds for certain purposes; specifies multiple oversight requirements from prior acts that are not effective for projects committed on or after August 23, 2013 and shall instead by governed by the Final Rule entitled `Home Investment Partnerships Program; Improving Performance and Accountability; Updating Property Standards'; and requires grantee notification within 60 days of enactment. Language is included under Department of Housing and Urban Development, `Self-help and assisted homeownership opportunity program' which specified funding amounts for certain programs, limits the period of availability, and specifies certain amounts for rural activities and organizations. Language is included under Department of Housing and Urban Development, `Homeless assistance grants' which limits the availability of funds; specifies the allocation of certain funds for certain purposes; specifies matching requirements; requires the Secretary to establish minimum performance thresholds for projects, prohibits the Secretary from funding continuum of care contract renewals unless certain requirements are met; requires the Secretary to prioritize funding to grant applicants that demonstrate a capacity to reallocate funding to higher performing projects; requires grantees to integrate homeless programs with other social service providers; allows certain funds to be administered by private non-profit organizations; allows unobligated balances and recaptures from certain project-based rental assistance grants and shelter plus care renewals to be used; requires notification of formula allocations within 60 days of enactment; and makes allowances for youth under the age of 24 who are served by the program. Language is included under Department of Housing and Urban Development, `Project-based rental assistance' which limits the availability of funds and specifies the allocation of certain funds for certain purposes; and allows the Secretary to recapture residual receipts from certain properties. Language is included under Department of Housing and Urban Development, `Housing for the elderly' which limits the availability of funds; specifies the allocation of certain funds; designates certain funds to be used only for certain grants; allows funds to be used for specified inspections or inspection-related activities; allows funds to be used to renew certain contracts; allows the Secretary to waive certain provisions governing contract terms; allows excess funds held in residual receipts accounts, after contract termination, to be deposited in this account, and limits the availability and use of these funds. Language is included under Department of Housing and Urban Development, `Housing for persons with disabilities' which limits the availability of funds; specifies the allocation of certain funds; allows funds to be used for inspections or inspection-related activities; allows funds to be used to renew certain contracts; allows funds held in residual account, after contract termination, to be deposited in this account, and limits the availability and use of these funds. Language is included under Department of Housing and Urban Development, `Housing counseling assistance' that provides funds for described purposes, limits the availability of funds, specifies amounts to be used for specified purposes, requires the Secretary to make grants within a specified time frame, and allows multiyear agreements subject to the availability of annual appropriations. Language is included under Department of Housing and Urban Development, `Rental housing assistance' that limits the availability of funds and allows the Secretary to use specified unobligated balances, including recaptures, carryover and other specified remaining funds for specified purposes. Language is included under Department of Housing and Urban Development, `Payment to manufactured housing fees trust fund' that limits the availability of funds from specified sources; permits fees to be assessed, modified, and collected; permits temporary borrowing authority from the general fund of the Treasury; provides that general fund amounts from collections offset the appropriation so that the resulting appropriation is a specified amount; requires fees collected to be deposited into the Manufactured Housing Fees Trust Fund; allows fees to be used for necessary expenses; and allows the Secretary to use approved service providers. Language is included under the Department of Housing and Urban Development, `Mutual mortgage insurance program account' which limits new commitments to issue guarantees, limits the obligations to make direct loans, specifies funds for specific purposes, specifies that the Secretary may insure specific mortgages only under certain conditions; specifies the extent that the commitment levels allows for additional contract expenses, and limits the availability of funds. Language is included under Department of Housing and Urban Development, `General and special risk program account' which sets a loan principal limitation on new commitments to guarantee loans, limits the obligations to make direct loans, specifies funds for specific purposes, and limits the availability of funds. Language is included under Department of Housing and Urban Development, `Government national mortgage association' which limits new commitments to issue guarantees, provides funds for salaries and expenses, allows specified receipts to be credited as offsetting collections, allows for additional contract expenses as guaranteed loan commitments exceed certain levels, and limits the availability of funds. Language is included under Department of Housing and Urban Development, `Policy development and research' which limits the availability of funds, specifies authorized uses, and directs the submission of a spend plan. Language is included under Department of Housing and Urban Development, `Fair housing and equal opportunity' which limits the availability of funds, authorizes the Secretary to assess and collect fees, places restrictions on the use of funds for lobbying activities, and provides funds for programs that support the assistance of persons with limited English proficiency. Language is included under Department of Housing and Urban Development, `Office of lead hazard control and healthy homes' which changes the period of availability of funds, specifies the amount of funds for specific purposes, specifies the treatment of certain grants, and specifies a matching requirement for grants. Language is included under Department of Housing and Urban Development, `Information technology fund' which changes the period of availability and purpose of funds, including funds transferred. Language is included under Department of Housing and Urban Development, `Office of Inspector General' which specifies the use of funds and directs that the IG shall have independent authority over all personnel issues within the office. Section 201 splits overpayments evenly between Treasury and State HFAs. Section 202 prohibits funds from being used to investigate or prosecute lawful activities under the Fair Housing Act. Section 203 requires any grant or cooperative agreement to be made on a competitive basis, unless otherwise provided, in accordance with Section 102 of the Department of Housing and Urban Development Reform Act of 1989. Section 204 relates to the availability of funds for services and facilities for GSEs and others subject to the Government Corporation Control Act and the Housing Act of 1950. Section 205 prohibits the use of funds in excess of the budget estimates, unless provided otherwise. Section 206 relates to the expenditure of funds for corporations and agencies subject to the Government Corporation Control Act. Section 207 requires the Secretary to provide quarterly reports on uncommitted, unobligated, recaptured, and excess funds in each departmental program and activity. Section 208 requires the Administration's budget and HUD's budget justifications for fiscal year 2019 be submitted in the identical account and sub-account structure provided in this Act. Section 209 exempts GNMA from certain requirements of the Federal Credit Reform Act of 1990. Section 210 authorizes HUD to transfer debt and use agreements from an obsolete project to a viable project, provided that no additional costs are incurred and other conditions are met. Section 211 sets forth requirements for Section 8 voucher assistance eligibility and includes consideration for persons with disabilities. Section 212 distributes Native American Housing Block Grants to the same Native Alaskan recipients as in fiscal year 2005. Section 213 authorizes the Secretary to insure mortgages under Section 255 of the National Housing Act. Section 214 instructs HUD on managing and disposing of any multifamily property that is owned or held by HUD. Section 215 allows the Section 108 loan guarantee program to guarantee notes or other obligations issued by any State on behalf of non-entitlement communities in the State. Section 216 allows PHAs that own and operate 400 or fewer units of public housing to be exempt from asset management requirements. Section 217 restricts the Secretary from imposing any requirements or guidelines relating to asset management that restrict or limit the use of capital funds for central office costs, up to the limit established in QHWRA. Section 218 requires that no employee of the Department shall be designated as an allotment holder unless the CFO determines that such employee has received certain training. Section 219 requires the Secretary to publish all notice of funding availability that is competitively awarded on the internet for fiscal year 2018. Section 220 limits attorney fees and requires the Department to submit a spend plan to the House and Senate Committees on Appropriations. Section 221 allows the Secretary to transfer up to 10 percent of funds or $4,000,000, whichever is less, appropriated under the headings ``Administrative Support Offices'' or ``Program Office Salaries and Expenses'' to any other office funded under such headings. Section 222 requires HUD to take certain actions against owners receiving rental subsidies that do not maintain safe properties. Section 223 places a salary and bonus limit on public housing agency officials and employees. Section 224 prohibits the use of funds for the doctoral dissertation research grant program at HUD. Section 225 extends the HOPE VI program to September 30, 2018. Section 226 requires the Secretary to notify the House and Senate Committees on Appropriations at least 3 full business days before grant awards are announced. Section 227 prohibits funds to be used to require or enforce the Physical Needs Assessment (PNA). Section 228 prohibits funds for HUD financing of mortgages for properties that have been subject to eminent domain. Section 229 prohibits the use of funds to terminate the status of a unit of general local government as a metropolitan city with respect to grants. Section 230 allows funding for research, evaluation, and statistical purposes that is unexpended at the time of completion of the contract, grant, or cooperative agreement to be reobligated for additional research. Section 231 prohibits funds to be used for financial awards for employees subject to administrative discipline. Section 232 allows program income as an eligible match for 2016, 2017, and 2018 Continuum of Care funds. Section 233 permits HUD to provide one year transition grants under the continuum of care program. Section 234 prohibits the use of funds to direct a grantee to undertake specific changes to existing zoning laws as part of carrying out the final rule entitled, ``Affirmatively Furthering Fair Housing'' or the notice entitled, ``Affirmatively Furthering Fair Housing Assessment Tool''. Section 235 extends the mark to market program to September 30, 2022. Section 236 prohibits new guarantees or insurance on properties with a PACE loan that is or has the potential to be in a superior lien position compared to the mortgage guaranteed or insured under the MMI fund. Section 237 expands authorities under the Rental Assistance Demonstration program. TITLE III--RELATED AGENCIES Language is included for the Access Board, `Salaries and expenses' that limits funds for necessary expenses and allows for the credit to the appropriation of funds received for publications and training expenses. Language is included for the Federal Maritime Commission, `Salaries and expenses' that provides funds for services authorized by 5 U.S.C. 3109, the hire of passenger motor vehicles, uniforms and allowances; and limits funds for official reception and representation expenses. Language is included for the National Railroad Passenger Corporation, Office of Inspector General, `Salaries and expenses' that provides funds for an independent, objective unit responsible for detecting and preventing fraud, waste, abuse, and violations of law; promotes economy, efficiency and effectiveness at Amtrak; allows the IG to enter into contracts; select, appoint or employ officers and employees to carry out its functions; and requires the IG to submit its budget request concurrently with the President's budget and in a similar format. Language is included under National Transportation Safety Board, `Salaries and expenses' that provides funds for hire of passenger motor vehicles and aircraft, services authorized by 5 U.S.C. 3109, uniforms or allowances therefore, limits funds for official reception and representation expenses and allows funds to be used to pay for costs associated with a capital lease. Language is included in the Neighborhood Reinvestment Corporation (NRC), `Payment to the neighborhood reinvestment corporation' that specifies the allocation of funds. Language is included for the United States Interagency Council on Homelessness, `Operating expenses' that provides funds for closure of the Council. Language is included under Surface Transportation Board, `Salaries and expenses' allowing the collection of a specified level of fees established by the Chairman of the Surface Transportation Board, and providing that the sum appropriated from the general fund shall be reduced on a dollar-for-dollar basis as such fees are received. TITLE IV--GENERAL PROVISIONS, THIS ACT Section 401 prohibits pay and other expenses for non- Federal parties intervening in regulatory or adjudicatory proceedings. Section 402 prohibits obligations beyond the current fiscal year and prohibits transfers of funds unless expressly so provided herein. Section 403 limits consulting service expenditures in procurement contracts to those contained in the public record. Section 404 prohibits employee training not directly related to the performance of official duty. Section 405 specifies requirements for reprogramming funds. Section 406 provides that fifty percent of unobligated balances for salaries and expenses may remain available for certain purposes, subject to the approval of the House and Senate Committees on Appropriations. Section 407 prohibits the use of funds for any project that seeks to use the power of eminent domain, unless eminent domain is employed only for a public use. Section 408 prohibits funds from being transferred to any department, agency, or instrumentality of the U.S. Government, except where transfer authority is provided in this Act. Section 409 prohibits funds in this Act from being used to permanently replace an employee intent on returning to his or her past occupation after completion of military service. Section 410 prohibits funds in this Act from being used, unless the expenditure is in compliance with the Buy American Act. Section 411 prohibits funds from being appropriated or made available to any person or entity that has been convicted of violating the Buy American Act. Section 412 prohibits funds for first-class airline accommodations in contravention of sections 301-10.122 and 301- 10.123 of title 41 CFR. Section 413 prohibits funds from being used for the approval of a new foreign air carrier permit or exemption application if that approval would contravene United States law or Article 17 bis of the U.S.-E.U.-Iceland-Norway Air Transport Agreement. Section 414 restricts the number of employees that agencies funded in this Act may send to international conferences. Section 415 caps the amount of fees the Surface Transportation Board can charge and collect for rate or practice complaints filed at the amount authorized for court civil suit filing fees. Section 416 rescinds unobligated salaries and expenses balances from various accounts. Section 417 prohibits funds from being used to maintain or establish computer networks unless such networks block the viewing, downloading, or exchange of pornography. Section 418 establishes a spending reduction account. APPROPRIATIONS NOT AUTHORIZED BY LAW Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of the House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law for the period concerned (dollars in thousands): Appropriations Not Authorized by Law and Expiring Authorizations [Dollars in Thousands] ---------------------------------------------------------------------------------------------------------------- Appropriations in Program Last year of Authorization last year of Appropriations in authorization Level authorization this bill ---------------------------------------------------------------------------------------------------------------- Title I--Department of Transportation\1\ Office of the Secretary: Payments to Air Carriers\1\..... 2017 $175,000 $150,000 $150,000 Federal Aviation Administration:\1\ Operations...................... 2017 9,909,724 10,025,852 10,185,482 Facilities and Equipment........ 2017 2,855,000 2,855,000 2,855,000 Research, Engineering, and 2017 166,000 176,500 170,000 Development.................... Grant-in-Aid for Airports....... 2017 3,350,000 3,350,000 3,350,000 Federal Railroad Administration: Safety and Operations........... 2013 293,000 169,254 218,298 Maritime Administration: Operations and Training\2\...... 2017 224,146 175,560 175,620 Ship Disposal\2\................ 2017 20,000 34,000 9,000 Maritime Security Program\2\.... 2017 299,997 300,000 300,000 Assistance to Small Shipyards... 2017 30,000 10,000 3,000 Title XI\2\..................... 2017 3,000 3,000 3,000 ---------------------------------------------------------------------------------------------------------------- \1\The FAA Extension, Safety, and Security Act of 2016 (P.L. 114-190) extends FAA Authorities through September 30, 2017. \2\Reflects authorized amounts associated with maintaining national security aspects of the merchant marine per Pub. L. 114-328. ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- Title II--Department of Housing and Urban Development Management and Administration....... 1994 $1,029,496 $916,963 $1,350,671 Rental Assistance: Section 8 Voucher Renewals and 1994 8,446,173 5,458,106 20,486,725 Administrative Expenses........ Public Housing Capital Fund..... 2003 3,000,000 2,712,555 1,850,000 Public Housing Operating Fund... 2003 2,900,000 3,576,600 4,400,000 Native American Housing Block Grants 2013 Such sums as 616,001 654,000 necessary Indian Housing Loan Guarantee Fund.. 2012 Such sums as 6,000 7,227 necessary Housing Opportunity for Persons with 1994 156,300 156,000 356,000 Aids............................... Community Development Fund.......... 1994 4,168,000 4,877,389 2,960,000 Community Development Loan Guarantee 1994 not applicable not applicable [300,000] Limitation......................... Home Investment Partnerships Program 1994 2,173,612 1,275,000 850,000 Choice Neighborhoods Initiatives.... never not applicable not applicable 20,000 Self-Help Homeownership Opportunity 2001 Such sums as 48,000 45,000 Program............................ necessary Homless Assistance.................. 2011 Such sums as 1,901,190 2,383,000 necessary Housing for the Elderly............. 2003 Such sums as 783,286 573,000 necessary Housing for Persons with 2015 300,000 135,000 147,000 Disabilities....................... FHA General and Special Risk Program Account: Limitations on Guaranteed Loans. 1995 Such sums as [20,885,072] [30,000,000] necessary Limitation on Direct Loans...... 1995 Such sums as [220,000] [5,000] necessary GNMA Mortgage Backed Securities Loan Guarantee Program Account: Limitations on Guaranteed Loans. 1996 [110,000,000] [110,000,000] [500,000,000] Administrative Expenses......... 1996 Such sums as 9,101 25,400 necessary Policy Development and Research..... 1994 36,470 35,000 85,000 Fair Housing Activities, Fair 1994 26,000 20,481 65,300 Housing Program.................... Lead Hazard Reduction Program....... 1994 250,000 150,000 130,000 Title III--Related Agencies National Transportation Safety Board 2008 92,625 84,499 106,000 Neighborhood Reinvestment 1994 30,714 31,715 140,000 Corporation........................ ---------------------------------------------------------------------------------------------------------------- PROGRAM DUPLICATION No provision of this bill establishes or reauthorizes a program of the Federal government known to be duplicative of another Federal program, a program that was included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111-139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. DIRECTED RULE MAKING The bill does not direct any rule making. COMPARISON WITH THE BUDGET RESOLUTION Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House of Representatives and Section 308(a)(1)(A) of the Congressional Budget Act of 1974, the following table compares the levels of new budget authority provided in the bill with the appropriate allocations under section 302(b) of the Budget Act: BUDGET IMPACT OF FY 2017 TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS BILL PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS AMENDED [In millions of dollars] ---------------------------------------------------------------------------------------------------------------- 302(b) Allocation This Bill --------------------------------------------------- Budget Budget Authority Outlays Authority Outlays ---------------------------------------------------------------------------------------------------------------- Comparison of amounts in the bill with Committee allocations to its subcommittees: Subcommittee on Transportation, Housing and Urban Development, and Related Agencies Mandatory............................................... 0 0 0 \1\0 Discretionary........................................... 56,512 121,000 56,512 120,943 ---------------------------------------------------------------------------------------------------------------- \1\Includes outlays from prior-year budget authority. FIVE-YEAR OUTLAY PROJECTIONS Pursuant to section 308(a)(1)(B) of the Congressional Budget Act of 1974, the following table contains five-year projections prepared by the Congressional Budget Office of outlays associated with the budget authority provided in the accompanying bill: [In millions of dollars] Projection of outlays associated with the recommendation: 2018............................................. \2\42,199 2019............................................. 37,122 2020............................................. 15,007 2021............................................. 6,314 2022 and future years............................ 9,091 \2\Excludes outlays from prior-year budget authority. ASSISTANCE TO STATE AND LOCAL GOVERNMENTS Pursuant to section 308(a)(1)(C) of the Congressional Budget Act of 1974, the amounts of financial assistance to State and local governments is as follows: [In millions of dollars] ------------------------------------------------------------------------ Budget Authority Outlays ------------------------------------------------------------------------ Financial assistance to State and 32,331 \2\32,174 local governments for 2018....... ------------------------------------------------------------------------ \2\Excludes outlays from prior-year budget authority. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] MINORITY VIEWS MINORITY VIEWS OF NITA M. LOWEY AND DAVID E. PRICE The impact of the Republican majority's self-imposed austerity is on full display in the Fiscal Year 2018 appropriations bill for the Subcommittee on Transportation, Housing and Urban Development and Related Agencies (T-HUD). This year's bill includes $56.5 billion for critical transportation, housing, and community development programs--a $1.1 billion reduction compared to current levels. This year's T-HUD allocation is insufficient to address our nation's housing and infrastructure challenges. Where boldness and leadership are required, this bill offers timidity and the status quo. In each of our districts, we have examples of damaged roads, structurally deficient bridges, and aging transportation systems. We have a shortage of affordable housing and aging public housing properties in need of repair. Robust investments in infrastructure and community development would address these shortfalls and put people to work, improve safety and boost economic growth. The American Society of Civil Engineers' most recent report gave U.S. infrastructure a D+ grade and identified a $2 trillion investment gap over the next decade. Our infrastructure continues to deteriorate at an alarming rate, causing congestion on our roads, delays at our airports, and bottlenecks at our ports. Throughout the campaign and in his first days in office, the President assured Americans that infrastructure was a priority for his administration. Yet, the President and his Republican Congress, in an appropriations bill that should robustly fund the modernization of our infrastructure, advanced a hollow shell that puts us even further behind in modernizing American transport. This bill eliminates the successful and popular TIGER grants program and drastically cuts Capital Investment Grants when there is a crisis on the rails for commuters and train travelers in the New York metro area and around the country. If the Republican majority continues to neglect infrastructure that is crumbling before our very eyes, it will only get more expensive to address in the future and will become more dangerous for all Americans. We are in the midst of a housing crisis. Millions of Americans struggle to pay rent as wages fail to rise as quickly as housing costs. Yet, Community Development Block Grants (CDBG) and the HOME program, both lauded by local elected officials around the country for their flexibility and effectiveness, are each cut by $100 million. The Public Housing Capital Fund, Lead Hazard Control, and the Section 4 Capacity Building Program utilized by Habitat for Humanity and other nonprofits to expand their reach are all cut. Some estimates suggest that the funding levels in this bill could result in the loss of more than 140,000 housing vouchers. This would have a horrible impact on low-income families, putting them at immediate risk of eviction and, in the worst cases, homelessness. During full committee consideration of the bill, Democrats offered amendments to improve the bill and invest in America's infrastructure and working families. Republicans defeated each of these amendments on a party-line vote. Mr. Price offered a comprehensive amendment that would invest $200 billion in America's highways, rail, transit, and housing infrastructure. It would have provided funding to repair aging bridges, repair our roads, and to modernize our airports and our airspace. Rather than confront the infrastructure challenges head-on, Republicans defeated the amendment. Republicans also rejected amendments from Mrs. Lowey that would have removed more lead hazards from homes and made commuter railroads safer as well as other Democratic amendments to increase CDBG and HOME, bolster our public housing stock, protect vulnerable populations, advance homelessness prevention efforts, and invest in more transit. We look forward to addressing these shortcomings as the process moves forward. The bill also contains several controversial policy riders that unnecessarily attack high speed rail, roll back transportation safety protections for the traveling public, and harm labor rights. Many of these issues were considered and rejected during consideration of the FY 2017 omnibus negotiations. Mr. Price offered an amendment to strip these riders at Full Committee markup, which the majority rejected. In recent years, this bill has become a Court of Appeals for the trucking industry, re-litigating issues in the Appropriations Committee rather than addressing them through the authorizing process. We strongly object to including these riders in the bill. The Chairman was dealt a very difficult hand with an inadequate allocation, but he deserves recognition for some key investments. The T-HUD bill sustains basic safety activities at DOT and provides funding increases to Housing for the Elderly and Housing for Persons with Disabilities. We also want to thank the Chairman for including $20 million for the Choice Neighborhoods Initiative. Funding this program nominally in the base bill will give us a chance to improve this number as the process moves forward, even though President Trump suggested eliminating the program. While the bill includes language to ensure FTA continues to rate and review projects in the grant pipeline, this lower funding level threatens the progress and viability of major transit projects around the country. The bill reflects the strong bipartisan consensus within the Appropriations Committee that we must continue providing the resources necessary to strengthen and modernize the air traffic control system. The Federal Aviation Administration received a $153 million increase over last year and a $434 million increase over the President's request. This consensus is sorely lacking on the authorizing committee where Republicans advanced a partisan and controversial plan that, if implemented, would jeopardize NextGen's progress and hand over billions of dollars in federal assets and control of the skies to private industry. In its current form, the bill represents a step in the wrong direction. However, we remain hopeful that a new bipartisan budget deal will be reached that makes it possible to revise this legislation to garner bipartisan support. We look forward to working with the Chairman toward this end in the months ahead. As the legislative process continues, we will do our best to address the concerns described here. Without a larger discussion of the Federal budget, it will be nearly impossible to pass a Transportation, and Housing and Urban Development appropriations bill for FY 2018 into law. The inadequacy of this bill's allocation can only be fixed if Democrats and Republicans negotiate new caps for spending that do not slash the investments needed in this bill and others to support working families and grow the economy. Unfortunately, to date, Republicans are choosing to close ranks around a partisan effort to cut programs depended on by millions of Americans even though they know it will lead to another forced crisis to keep the government open. Democrats stand ready to work with Republicans on appropriations bills that invest in the American people. We all know that Democratic votes will be needed to reach a spending agreement that can be enacted, When Republicans get serious about that, we will be ready and willing to work with our colleagues to make sure this bill better funds initiatives that Americans rely on to pursue the American dream. Nita M. Lowey. David E. Price. [all]