| This Statement of Administration Policy provides the
				  Administration's views on the Transportation and Related Agencies
				  Appropriations Bill, FY 2001, as reported by the House Committee. As the House
				  develops its version of the bill, your consideration of the Administration's
				  views would be appreciated.  The Administration appreciates the Committee's efforts to
				  accommodate many of the Administration's priorities in its bill. These include
				  needed Amtrak capital funding, the highway and transit funding levels
				  envisioned at the time of passage of the Transportation Equity Act for the 21st
				  century (TEA-21), and funding to expand motor carrier safety programs and
				  address Coast Guard readiness and expand its operations.  The Administration proposes to meet important safety, mobility,
				  and environmental requirements, including expanded intercity passenger rail
				  service, by reallocating a portion of the increased spending permitted by the
				  higher-than-anticipated highway excise tax receipts. Under this proposal, every
				  State would receive at least as much funding as was assumed when TEA-21 was
				  enacted. Last year, Congress chose to use the Transportation appropriations
				  bill to redistribute almost $1.5 billion in funding within the highway
				  "guarantee" in a manner different than that contemplated in TEA-21. The House
				  is encouraged to redistribute a similar amount this year to support these
				  important priorities.  In particular, as noted below, the Administration is concerned
				  that the Committee bill could adversely impact the Federal Aviation
				  Administration's (FAA's) operations as well as highway and pipeline safety
				  programs.  The following highlights our specific concerns with the
				  Committee bill. We look forward to working with you to resolve these issues as
				  the bill moves forward.  Aviation Safety  The Administration strongly urges the House to fully fund the
				  Administration's request for FAA Operations. The Committee has provided $48
				  million less than the Administration's request, and added $11 million in
				  unrequested items, resulting in $59 million in FAA programs being unfunded.
				  This would force the FAA to reduce telecommunications, radar operations, and
				  other services necessary to maintain a safe, efficient air traffic control
				  system.  CAFE Standards  In recent years, the United States has had a significant
				  increase in transportation fuel consumption and a corresponding increase in
				  U.S. energy vulnerability. As a result of prohibitions enacted by Congress in
				  recent years on working on the corporate average fuel economy (CAFE) standards,
				  the Department of Transportation has been banned from fully analyzing this
				  important issue. The Administration strongly opposes the Committee provision
				  that continues this prohibition. In the past, CAFE standards have resulted in a
				  doubling of the fuel economy of the car fleet, reducing our dependence on
				  foreign oil and saving the Nation billions of gallons of oil and the consumer
				  billions of dollars. Continuing this misguided prohibition would contribute to
				  more energy consumption, and therefore would increase both environmental and
				  energy security risks.  Highway and Pipeline Safety  The Administration is concerned that the Committee has provided
				  $105 million less than the President has requested for the National Highway
				  Traffic Safety Administration's Operations and Research account. This funding
				  reduction would limit critical research on crash worthiness and prevent the
				  implementation of important new programs to increase seat belt use and target
				  high-risk groups. The Administration is also concerned that the Committee has
				  provided $4.5 million less than requested to enhance pipeline safety.  Delta Initiative  The Administration strongly objects to the Committee's failure
				  to provide the $69 million requested for the Mississippi Delta initiative. This
				  comprehensive initiative is necessary to address the social and economic
				  challenges facing the Delta region. Although the Delta has seen some economic
				  progress, it remains far behind most of the rest of the country. In the Delta's
				  distressed counties, per capita income is only 53 percent of the national
				  average, and the poverty rate is more than twice national average. In more than
				  half of the Delta's counties, the poverty rate has exceeded 20 percent for each
				  of the past 40 years. In some Delta counties, unemployment rates are two to
				  three times higher than the national average. Better transportation
				  infrastructure and services are central to improving the lives of, and
				  increasing the opportunities for Delta residents by providing access to
				  employment, child care, and training.  Native Americans  The House is requested to provide the full $358 million request
				  to improve transportation services to Native Americans and to allow tribal
				  governments to apply directly for Job Access grants. These funds will be used
				  to address the $4 billion backlog of improvements needed on Indian reservation
				  roads, improve highway safety, and provide welfare recipients with needed
				  access to jobs and improved construction training opportunities. In addition,
				  the Administration urges the House to restore the $5 million for design and
				  preliminary engineering of the Four Bears Bridge in North Dakota.  Pennsylvania Station  The Administration strongly opposes the Committee's proposed
				  rescission of $60 million for the Farley/Pennsylvania Station project. Such a
				  rescission would jeopardize the project's complex financing package. This
				  project will generate significant transportation and economic benefits. Its
				  timely completion is essential to respond effectively to the significant rail
				  ridership increases projected for the Northeast corridor in the near future.
				   Job Access and Reverse Commute  The House is urged to provide the additional $50 million
				  requested for the Job Access and Reverse Commute program, which is a critical
				  component of the Administration's welfare-to-work effort. This program is
				  oversubscribed now. Demand is expected to increase as more communities across
				  the country demonstrate how effective the program can be in helping
				  hard-pressed working families, including former welfare recipients, get to
				  work.  Office of the Secretary  The Administration urges the House to provide the President's
				  request of $69 million for the Office of the Secretary and to delete the
				  limitation on political appointees and other restrictions. These adjustments
				  are necessary to provide the Secretary with the resources and flexibility to
				  manage the Department effectively.  Kyoto Protocol  The Administration is concerned that the House may add language
				  that has been added in another appropriations bill in the House this year
				  regarding the Kyoto protocol and climate change. This language is unacceptable
				  and may well be unconstitutional. The Administration will not accept any
				  appropriations language that limits activities under current law to reduce
				  greenhouse gasses, or that restricts the President's constitutional authority
				  to negotiate international agreements. As we have stated many times, the
				  Administration has not, and will not, attempt to implement the Kyoto Protocol
				  prior to ratification. Consequently, such language should not be added since it
				  would be unwarranted, disruptive, and could be interpreted as
				  unconstitutionally preventing the Department of Transportation from assisting
				  the President in carrying out his constitutional authority to conduct
				  international negotiations.  Earmarking  The Administration strongly objects to the Committee's excessive
				  earmarking of discretionary programs. These funds should be distributed based
				  on merit.  Infringement on Executive Authority  The Administration objects to a number of provisions in the bill
				  that would require congressional approval before Executive Branch execution.
				  The Administration will interpret these provisions to require only notification
				  of Congress, since any other interpretation would contradict the Supreme Court
				  ruling in INS v. Chadha.  |