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 Reauthorizing the Nation's surface transportation programs is the 
Administration's top transportation priority for this session of Congress.  
The Administration is pleased that 
S. 1173 is a 6-year bill, and that it addresses many of the President's 
priorities as reflected in the Administration's proposal.  For example, the 
bill includes important environmental protection, welfare-to-work, and worker 
protection provisions; and expands the uses of the highway and mass transit 
capital funds.  In addition, the Administration supports many of the safety 
provisions under consideration by the Commerce Committee.
 
 The Bipartisan Budget Agreement.  The Bipartisan Budget 
Agreement (BBA) between the President and the Congress increased highway 
spending by $10 billion.  While the Senate reported bill is more consistent 
with the BBA than the 6-year bill considered by the House Transportation and 
Infrastructure Committee, S. 1173 still exceeds the total transportation 
spending levels assumed in the BBA -- including an additional $2 billion in 
mandatory outlays. However, the Administration understands that it is the 
managers' intent to modify the bill so that it remains within the bounds of 
the carefully crafted BBA.  The Administration supports this goal and urges the 
Senate to craft a bill that is fully consistent with the BBA. The 
Administration would strongly oppose amendments to the bill which would further 
increase funding levels above those agreed upon in the BBA. 
 
 Amendment Concerns.  The Administration commends the Senate for 
retaining ISTEA's disadvantaged business enterprise goals and uniform 
certification provision for highway projects, and strongly opposes any 
amendments to repeal or weaken these provisions. In addition, the Admin
istration would oppose any amendments to weaken: the National Environmental 
Policy Act, the Congestion Mitigation and Air Quality Improvement Program 
(including allowing single occupancy vehicle projects to receive funding under 
the Program), or the Clean Air Act. The Administration is also committed to 
retaining ISTEA's labor standards and employee protection requirements 
afforded working people on federally assisted projects (including those 
assisted by State infrastructure banks), and would oppose any amendments 
repealing or limiting these protections. The Administration would also oppose 
changing the transit formula by adopting any form of minimum allocation for 
transit.
 
 Major Concerns. The Administration supports Senate passage of a 
6-year transportation bill, but will seek amendments to S. 1173 to address the 
concerns described below and the additional concerns discussed in the 
attachment.
 
- The bill should be modified to be fully consistent with the Bipartisan 
Budget Agreement.
  - The bill's safety provisions should be strengthened by -- retaining the 
unbelted crash testing requirement; penalizing repeat drunk driving offenders 
at the same blood alcohol level as first offenders; including the 
Administration's criteria in the seat belt incentive program for States to 
increase seat belt use rates; and eliminating the special exemption from the 
Federal seat belt use law for New Hampshire.
  - S. 1173 should be amended to authorize the full $2.2 billion requested by 
the Administration for the Appalachian Development Highway System, and the full 
$161 million requested for National Park roads and parkways.  The funding 
levels currently authorized in the bill are inadequate to support these 
important programs.
  - The bill should provide additional flexibility to State and local 
governments in establishing hiring preferences for in-State welfare recipients, 
in order to meet the aggressive targets included in the recent welfare reform 
law.
  
 Finally, the Administration supports the use of alternate fuels to improve our 
nation's air quality, and therefore strongly supports the extension of the 
excise tax exemption for ethanol (but without phasing down the rates of the 
benefits). 
 Pay-As-You-Go Scoring. S. 1173 as reported would increase direct 
spending; therefore it is subject to the pay-as-you-go requirement of the 
Omnibus Budget Reconciliation Act of 1990. Therefore, if the bill were enacted 
and these costs are not offset during the remainder of this Congressional 
session, a pay-as-you-go sequester would be triggered at the end of the 
session.  OMB's preliminary scoring estimates of this bill are presented in 
the table below.  Final scoring of this legislation may differ from these 
estimates.
 
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