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ROUTING SLIP DATE: 12/22/95 / / FROM: STEPHEN B. SILVERMAN Deputy Assistant to the President and Deputy Secretary to the Cabinet SUBJECT: Heads Up - FAA story John Angell 178 oeob Lorrie McHugh 166 oeob Don Baer g fl / WW Janet Murguia 112 ew Jeremy Ben-Ami 218A oeob Jennifer O'Connor 111 oeob % Erskine Bowles 1 fl / WW Tom O'Donnell 320 oeob Susan Brophy 2 fl / WW Leon Panetta 1 fl / WW Gabrielle Bushman 197 oeob Ron Klain 276 oeob Barbara Chow 107 ew Nancy Soderberg g fl / WW Michael Deich 233 oeob X Patti Solis 185.5 oeob Rahm Emmanuel 1 fl / WW Doug Sosnik g fl / WW Janice Enright 1 fl / WW Gene Sperling 2 fl / WW Jason Goldberg 2 fl / WW George Stephanopoulos 1 fl / WW Pat Griffin 2 fl / WW Todd Stern/Phil Caplan g fl / WW Marcia Hale 2 fl / WW Stephanie Streett g fl / WW Karen Hancox g fl / WW Ginny Terzano g fl / WW X Nancy Heinreich 1 fl / WW Kim Tilley 287 oeob Alexis Herman 2 fl / WW Melanne Verveer 100 oeob Kitty Higgins 160 oeob X Michael Waldman 214 oeob Harold Ickes 1 fl / WW Ann Walley g fl / WW Tim Keating 2 fl / WW Dan Wexler 117 oeob Barry TOIV Comments: 127DEC_22 '95.04:17PM DOT/SECRETARY OFFICE ADMINISTRATOR DOT P.2/5 FAA Filename: timesatc.doc Public Affairs contact: Jeffrey Thal, APA-300 December 8, 1995 APA BRIEFING PAPER News Organization: New York Times Subject: Air Traffic Control Modernization Program Lib Reporter(s): Mart Wald Scheduled to Run: Expected Sunday, December 24 FAA Official(s) Interviewed: David Hinson, George Donohue Background: Mart Wald of the New York Times is preparing a large piece for the Sunday Times describing the history of the FAA's effort to modernize the air traffic control system. He is expected to retell the story of "what went wrong" with the Advanced Automation System (AAS) program, going back to the Request-for-Proposal for the design competition in 1984. He has been provided with copies of the Center for Naval Analysis and Carnegie-Mellon studies conducted in 1993, as well as all the news releases we Put out concerning AAS development He says the thrust of his piece is to identify where we are now, describe how we got here, how confident we are that we are finally on the right track, and where we expect to be in the next 18 months to two years. Key Questions: Q: To what do you attribute the problems encountered during AAS development? A: The Advanced Automation System (AAS) program was an ambitious and technologically complex endeavor designed to enhance Air Traffic Control services through each phase of aircraft flight. In late 1993 and early 1994 several studies and review efforts were commissioned by Administrator Hinson. These reviews determined that the following factors contributed to the problems with the AAS: - Inadequate requirements management, - Complex architecure, and - Insufficient and inadequate program and contract management systems to track cost, schedule and technical performance. Q: How can we be sure that the program won't drift out of control again, that you have gotten it under control this time? A: The FAA has implemented several new approaches to address the concerns and recommendations of the AAS study and review groups. These approaches are designed to assure the success of programs by providing the ability to identify issues early and implementing timely and effective program controls. Tight baseline controls for requirements, cost and schedule have been implemented. Strong contract performance measurement and planning tools in the areas of cost, schedule, and 12/DEC. 22 '9504:17PM_DOT/SECRETARY OFFICE ADMINISTRATOR E P.3/5 technical progress have been established and implemented. These methods allow for a total view of the health of the programs by integrating cost, schedule and technical progress. A rigorous requirements management process, stressing requirements traceability, has also been established. New management was introduced and integrated product teams have been established along domain lines, i.e., en route, terminal. oceanic. Several management review vehicles have been instituted including monthly integrated product team lead (IPTL) reviews with the Director for Air Traffic Systems Development and periodic program Major Acquisition Reviews (MAR) with senior FAA management. These reviews provide for regular program status reviews against baseline program cost, schedule and technical performance. The Advanced Automation System program has been restructured providing for incremental development approaches, consistent with study results and recommendations. Q: What is the schedule for placing the Display System Replacement (DSR) in the air traffic control centers, and why do we bear that it will be 2000 before the entire system is operational? A: Please refer to the attached DSR delivery "waterfall" diagram. As can be seen on the diagram, DSR will be completed sequentially at the sites between 1998 and 2000. The First site, Seattle, becomes operational in October of 1998 and the last site, Boston, in May of 2000. Q: We keep bearing that the software was the problem with the Initial Sector Suite System (ISSS) system, and yet we are told that most of the ISSS sofeware is being integrated into the DSR system. If that's the case, bow is the DSR different from ISSS? A: The FAA has taken several steps towards improving the quality of DSR software: Aggressively recruiting a high-caliber software acquisition management team. Invoking critical software development processes and industry standards aimed at increasing the quality. Committing the resources necessary to upgrade the quality of the existing code to industry standards. Implementing an aggressive code reinspection process and Independent Verification and Validation (IV&V) code quality audits. Retesting ISSS legacy software to ensure that it meets the basic measures of software quality. The FAA continues to monitor Loral's compliance with development standards and inspects software regularly. A data point in verifying that the measures taken have been effective was recently obtained when the FAA IV&V agent performed a code quality audit on the improved DSR software, finding "statistically significant improvements" in code quality. 12/22/95 DEC 22 '95 08:68 04:17PM DOT/SECRETARY OFFICE ADMINISTRATOR P.4/5 004 Q: We are told that one of the problems with AAS was that it was too complex, trying to integrate en route and terminal systems into a common system. Now we read of problems with the terminal program, Standard Terminal Automation Replacement System (STARS)? Are the problems with STARS related in any way to development of the DSR system. How are these systems related-bow are they similar and bow are they different? A: The AAS was complex; its complexity however was not entirely related to the integration of en гоше and terminal systems. AAS was composed of five major elements: en route, terminal and tower domains of air traffic control. Each of these segments was technically complicated, and parallel development efforts made management difficult The STARS program differs significantly from AAS in that there is no attempt to merge en route and terminal functions, nor is there a requirement to interface with the Tower Control Computer Complex. In addition, STARS is maximizing use of commercial hardware and software. Q: The IBM Host computers currently in the en route centers were installed almost ten years ago. How long are they expected LO continue to run? Are they, as we hear, running at near capacity now? What is the plan to ensure that we don't encounter the same problems in a few years with the Host that we encountered with the 9020's? Will the bosts be replaced, and when? A: The Host computer at the busiest ARTCC has not yet reached the maximum allowable capacity according to the specification. However, to provide maximum system reliability and to assure processing capacity reserve for functional improvements in the future. the FAA is developing a strategy for replacement of the Host Computers. Preliminary proposals are to incrementally evolve the en route architecture to new technologies. The schedule for this process has not been finalized. enn X S/S/S DSR Waterfall CY 1997 1996 1999 2000 6 7 8 9 10 11 12 12345678 9101112 1 2 3 4 5 6 7 8 9101112 1 2 3 4 5 6 0 Seattle 8197 2/98 6/98 10/98 O Salt Lake City 10/97 4/98 8/98 12/9 O : Denver 6/98 10/98 2/99 12/97 0 G Atlanta 1/98 7/98 10/98 1/99 7 D Chicago 2/98 8/9B 11/98 2/99 Ft. Worth 3/98 9/90 12/98 3/99 0 1 Washington 4/9B 10/98 1/99 4/99 @ Houston 5/98 11/9 g 2/99 5/99 Cleveland B 6/98 12/98 3/99 6/99 12/22/85 22 '95 04:18PM DOT/SECRETARY OFFICE ADMINISTRATOR New York 7/98 1/99 4/99 7/99 0 Kansas City 8/98 2/99 5/98 8/99 © Memphis 9/98 3/99 6/99 9/99 Albuquerque 10/98 4/99 7/99 10/99 0 :i Oakland 5/99 11/98 8/99 11/99 Minneapolis 12/9 6/99 9/99 12/99 0 Miami 1/99 7/99 10/99 1/00 0 Los Angeles 2/99 8/99 11/99 2/00 © Indianapolis 3/99 9/99 12/99 3/00 ® Jacksonville 4/99 10/99 1/00 4/00 87:40 ® Boston 11/99 5/99 2/00 5/00 @ 6/99 2/99 Anchorage LEGEND: Hardware Delivery © Government Acceptance Initial Operational Capability Operational Readiness Date 1 12/27/95 19:32 202 267 3227 FAA AGC 1 001 FAA **** UNITED STATES DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION OFFICE OF THE CHIEF COUNSEL 800 INDEPENDENCE AVENUE, S.W. WASHINGTON, D.C. 20591 FACSIMILE TRANSMISSION COVER PAGE DATE: 12/27/95 TIME: 7:05pm FROM: Name: NICK GARAUFS Routing Symbol: Telephone: Facsimile: (202) 267-3227 TO: Name: Jennifer O'Comor Office: The White House Telephone: Facsimile: 202-456-7929 Comments: PAGE 1 OF 5 12/27/95 19:32 202 267 3227 FAA AGC 1 5. 002 To: Jennifer O'Connor From: Nick Garaufis Mich December 27, 1995/Facsimile Atttached is a one page fact sheet and summary for government use only concerning the American Airlines Flight 965 crash. We understand that the Columbian civil aviation authorities, who have accident investigation responsibility over the incident, plan to release a detailed statement of facts concerning the accident tomorrow, December 28, in Bogota at 2 p.m., Washington time. By mutual agreements between the U.S. and Colombia, the NTSB will distribute the Colombian statement at 3 p.m. in Washington. The statement will paraphrase information obtained from the cockpit voice recorder and flight data recorder (known as the "black boxes"). On its face, this material is expected to be extremely damaging to the American Airlines cockpit crew. The FAA is developing a set of talking points to help deal with media inquiries after issuance of the Colombian announcement. A copy of a draft is also enclosed, but is subject to change between now and tomorrow afternoon. A press statement modeled on the talking points may also be issued. One may expect substantial press coverage for the next couple of days. FAA public affairs is coordinating our response with DOT public affairs. I also enclose a Reuters wire service report concerning the possible contributory role of rebel sabotage. If you have any questions, you may call me at home tonight (202) 965-7505, or tomorrow at the office 267-3222. Regards to Harold and Janice. Enclosures (3) 12/27/95 19:33 202 267 3227 FAA AGC 1 5. 003 American Airlines Flight 965 Boeing 757-223 December 20, 1995, at 2141 EST Accident Site 9,100 feet. 30 miles north of Cali, Colombia, in Andes Mountains. Hit at Injuries Total on board was 8 crew and 156 passengers. All occupants received fatal injuries except for 4 passengers. Investigation Government of Colombia responsible for investigation as "State of Occurrence." U.S. Boeing. representatives from NTSB, FAA, American Airlines, and FAA/DOT participation - 8 staff from the Office of Accident Investigation, Office of Civil Aviation Security, and Office of International Aviation. back the "black boxes. " Travel to Colombia on FAA G-IV aircraft which also brought CVR and FDR readout in NTSB labs on December 24. Good quality tapes. Field phase in Colombia terminated on December 24 based on information on recorders. Preliminary Indications No aircraft malfunction. No navigation aid malfunction. No terrorist involvement. No weather involvement. Operational factors involving flightcrew performance and flight management are still under investigation and will be the focus of investigative activities in January. 12/27/95 19:33 202 267 3227 FAA AGC 1 5 004 DRAFT TALKING POINTS CALI, COLOMBIA, ACCIDENT, AMERICAN AIRLINES FLIGHT #965, DECEMBER 20, 1995 The Cali accident is still under investigation by the Colombian government. The National Transportation Safety Board (NTSB), at Colombia's request, is assisting with the investigation. The Federal Aviation Administration (FAA) is continuing to work closely with the NTSB and Colombia. While the joint investigation is underway, the FAA cannot comment regarding specifics of the accident. in accordance with long-established international practices. As is always the case following a major airline accident, the FAA will also work closely with American Airlines and its pilots in reviewing existing flight crew training and airline operational procedures. As the investigation continues, the FAA will determine what additional actions may be appropriate. The joint investigation includes a detailed analysis of potential factors that may have been involved in the accident, such as the crew's situational awareness and performance just before the aircraft struck a mountainside near Cali. The FAA is also participating in the recently established operations and human performance working group formed by the Colombian government as an element in its investigation. The FAA pledges its full cooperation with Colombian authorities and urges their timely completion of the investigation. The FAA looks forward to assessing their final report to determine areas requiring action to enhance aviation safety. ### 12/27/95 19:33 202 267 3227 FAA AGC 1 005 a0930reute r i.. BC-COLOMBIA-CRASH 12-27 0422 BC-COLOMBIA-CRASH Rebel sabotage cited as factor in Colombia air crash By Tom Brown BOGOTA (Reuter) - Lack of radar coverage caused by guerrilla sabotage of a radar station and authorities' inability to rebuild it may have contributed to last week's U.S. airliner crash over Colombia in which 160 people perished, officials said Wednesday. Martin Gonzalez, a spokesman for Colombia's Civil Aviation Authority, told Reuters the Santa Ana radar station in the Andean mountains south of Cali was destroyed by leftist guerrillas three years ago and had never been replaced. ''We haven't installed a new one because the guerrillas won't let us,'' Gonzalez said. As a result, air traffic controllers in Cali, the fatal flight's destination, had no way of knowing that the airliner was 12 miles off course moments before it crashed because the remote, mountain area where it went down is not covered by radar, authorities said. An air traffic controller at Cali's Alfonso Bonilla Aragon airport confirmed in a telephone interview that the disaster might have been avoided if the Santa Ana radar station had been replaced. ''we could have alerted the pilot, said the controller, who spoke on condition that he would not be identified. He said it was not clear why the Boeing 757 had strayed so far off its assigned course, but radar coverage clearly would have allowed controllers to detect the problem and initiate a corrective course. Aviation experts say only about two-thirds of Colombia's airsprace is covered by civilian and military radar, contributing to the high rate of near collisions in Colombian skies. In addition to the Santa Ana radar station, guerrillas blew up a series of aircraft navigation radio beacons across Colombia in 1992. The beacons, usually located on mountains, emit radio signals that allow pilots to map their location. Failure to replace one destroyed near the northwestern city of Medellin was cited as the likely cause of a May 1993 crash in which all 132 aboard a Boeing 727 were killed. Sixty 60 U.S. citizens were among those killed in last Wednesday's crash of American Airlines flight 965, en route from Miami, which plowed into a mountain four minutes before its scheduled landing in Cali. The accident was the deadliest involving a U.S. carrier since 270 people died in the bombing of Pan Am flight 103 over Lockerbie, Scotland, December 21, 1988. Only four of the 164 people aboard the flight survived, along with two dogs plucked from the wreckage -- the first on Friday and the second Monday. REUTER Reut13:31 12-27-95 DOT faa - Boeing 777 CABINET AFFAIRS ROUTING SLIP DATE: ACTION/CONCURRENCE/COMMENT DUE BY: FOR YOUR INFORMATION FROM: STEPHEN B. SILVERMAN DEPUTY SECRETARY TO THE CABINET DEPUTY ASSISTANT TO THE PRESIDENT SUBJECT: LEON PANETTA (JEN PALMIERI) 1FL WW HAROLD ICKES (JOHN SUTTON) 1FL WW JOHN KOSKINEN 260 OEOB EVELYN LIEBERMAN 1FL WW MARVIN KRISLOV 128 OEOB KITTY HIGGINS 2fl WW BoB LITAN 246 OEOB JOHN ANGELL 178 OEOB MIKE MCCURRY 160 OEOB DON BAER GFL WW ANNE MCGUIRE 160 OEOB KRIS BALDERSTON 160 OEOB LINDA MOORE 115 OEOB JEREMY BEN-AMI 218 OEOB JENNIFER O'CONNOR 1111/20EOB EMILY BROMBERG 106 OEOB ToM O'DONNELL 2FL WW GABRIELLE BUSHMAN 196 OEOB JACK QUINN 2FL WW MICHAEL DEICH 209 OEOB LEE SATTERFIELD 124 OEOB JOHN EMERSON 148 OEOB WENDY SMITH 115 OEOB RAHM EMMANUEL 1FL WW DOUG SOSNIK GFL WW ERIC EVE 115 OEOB GENE SPERLING 2FL WW T.J. GLAUTHIER 246 OEOB GEORGE STEPHANOPOULOS 1FL WW MARY ELLEN GLYNN GFL WW STEPHANIE STREET GFL WW MARCIA HALE 2FL WW GINNY TERZANO GFL WW KAREN HANCOX GFL WW BARRY TOIV 178 OEOB LARRY HAAS 253 OEOB MICHAELWALDMAN 214 OEOB NANCY HERNREICH 1FL WW ANNE WALLEY GFL WW ALEXIS HERMAN 2FL WW DAN WEXLER 117 OEOB LEE ANN INADOMI 160 OEOB KATHY WHALEN 139 OEOB FEMA DOT ANGELL 178 OEOB ANGELL178 OEOB BUDGET CHOW 107 EW DEICH 209 OEOB HIGGINS WW ENRIGHT 1FL WW HANCOX GFL WW HAAS 253 OEOB HALE 2FLWW HIGGINS 2FL WW HANCOXGFL WW LITAN 246 OEOB LITAN 246 OEOB MCHUGH MURGUIA 112 O'CONNOR 111 1/2 TERZANO EW TERZANO GFL ww WALDMAN GOLDBERG Transportation Issue JANUARY 19, 1996 TO: KITTY HIGGINS / STEVE SILVERMAN, CABINET AFFAIRS GINNY TERZANO, PRESS OFFICE FROM: STEVEN AKEY, DEPARTMENT OF TRANSPORTATION PUBLIC AFFAIRS Bill Shk Son SH RE: BUSINESSWEEK STORY CRITICAL OF FAA CERTIFICATION OF BOEING 777 Earlier this evening, Businessweek announced publication of an investigative story critical of the FAA's certification of the Boeing 777. The Businessweek press release (attached) says the story cites unnamed FAA sources who believe that "top level agency officials at the FAA [overruled} safety concerns raised by the agency's own engineers." FAA Public Affairs is preparing a response to inquiries (Reuters and Bloomberg so far) which will reflect the information in the attached FAA briefing paper. The bottom line is that the FAA will state that the 777 has undergone the most rigorous safety testing ever performed and the aircraft has fully measured up to its standards for safety. We will update as developments occur. 6/2'd JAN 18 '96 06:58PM DOT/OST PUBLIC AFF. JAN. - 18' 96 (THU) 19:37 FAA APA-500 WILLETT TEL: 202 267 5358 P. 001 JAN. (THU) 18:19 TEL:2028988383 P.001 JAN-18-1996 17:20 BUSINESS WEEK P.02 NEWS RELEASE BusinessWoek Contact: Christine Summer Bor (212) 512-2882 BUSINESS WEER'S CONTENTS EMBARGOED UNTIL 5,15 P. ME (JANUARY 28 BUSINESS WEEK INVESTIGNTEOK: DID THE FAA ON BORING? NEW YORK, N.Y., JANUARY 18, 1996 -- A four-manth investigation by BUSINESS WEEK has revealed that, for moze chan cut years Federal Avia- cion Administration efficials have been engaged in a Highly contentious debate with Bosing Co. chat raises serious safety issues about Boeang's nevest jumpo Jert, the 777. The report appears in the Jan. 29 BUSINESS WEEK, out today The issue: Fan blades on the 777's huge evin engines are extre heavy. If a blade broke in flight. some say is could destabilize the plane. Such breaks are not menown: 24 other jet have reported fan-blade breaks since 1990. Although no crashes have resulced, PAA safety experts fear that with the greater aiza and weight of the 777's blades. a break might shake the 777 cockpition Badly PTT pilots could not read the flight instruments incressinglithe risk of a crash. Despite the Worries, FAX soundas say Boeing appears to have done only limited testing to Bee now 'Loe 777 would react if a blade broke. BUSINESS WEEK reviewed dores of internal FAX documents and held lengthy interviews wich numerous mid-level engineers and safety in- spectore at the agency. including several who worked directly on the 777 certification project. These sources--most of whom spoke anonymously to BUSINESS WEEK for fear of reprisal--say shat many FAA officials concinue CO question whether the plane has been adequately tested. "It's an issue of satery," says one FAA engine specialist. Boeing officials declined to commone for BUSINESS WEEK'S article. In a written statement. the company maintains that "no airplane in his- cory has been tested as thoroughly as the Boeing. 777.- Top EAR officials in washington also vehemently defend the plane and the FAA safety ICVIAY process. Well-placed FAA source: see the issue differently. They believe that pressure to meet Secing planned certification date for the plane-- Apz. 19, 1995--led top-leva officials at the FAA CO overrule safety con- cerns raised by the agency own engineers. Critice cide the agency's dual mandate: The FAA's charter ealls for ie to ensure the safety of the public as well as to promote the U.S. aviation industry since June, Boeing's 777 has been logging daily flights between Chi- cago and Washington. Last week, Malaysia Airlines placed a 54 billion order that included 15 of new planes. # # 1221 Avenue l'Americas New York, NY 10020 Bob Howky 267-566 6/E'd JAN 18 '96 06:58PM DOT/OST PUBLIC AFF. JAN. - 18' 96 (THU) 19:37 FAA APA-500 WILLETT TEL: 202 267 5358 P. 002 JAN (THU) 10:19 TEL:2028935333 P 002 JAN-18-1996 17:25 BUSINESS WEEK P.03 The Corporation INVESTIGATIONS DID THE FAA GO EASY ON BOEING? To O.K. the 777 jumbo on time, the agency downplayed a possible flaw, some engineers say ince June, Docing Cd.'s nowErL certification project Thene sourchi-maze PRESSURE POINTI Fax blades on the S Junise Joh the 777, has been leg. of whom spake anonymously for this I 777's hupa orgines BT4 REtra ting daily Higher belveen Wash- Liela DUE of fear of that hoevy. If B blede broke in Might. JOINE ingion and Landon With is So- many FAS officials mildrus to question savine could deslabites the plan. physicated new design-drawn up whelher the Diare has been adequately antiroly on a computer acraen-the $4 Lested. "It's an inco of uniery." says one 1995 toolered allicials pl the PAS to billion acrepaft program Is a technologies! FAA engine specialist. referring to cun- OUBITUTO repoty concerns Frided by the and commercial triumph for the nation't carns chat the 777 could be severaly agency's DVD) engingers. Keenly were largest plane manafacturez The $1 bil- destabilized If a fun blade broke. "IL the Bacing's a Inmerestizacion schedule Man MAleysia Airlines order last work could land La castrophs." depended on meeting the dendline, that included 15 of the NAW planes con- DULL MANDATE Buring executives do these sources drgue HALL FAn marage- Armed the many in the setation in- elined to comment for this srude. In B ment started We TII an operating cer- dustry alrondy knew. As the hot-sall- written atstement, the ampany min- cificate without adequately tasking For ing 777 Liskes off, Boeing is soaring talns that "no surplane in history has the potential design Bsw. Oritice ILY ahoad of rivnis. been tested as thoroughly as the Bueing that such problems stam from the But B four-manch Investigation by 777." Top FAA officials in Washington Agency's duel mandats: The BRA'R charl BUSINESS WEEK has revolled that, for also vendmently defend the Dime. ter allo For it to ansure the oufety DE more than ENPO years, Federal Aviadon Thomas Sweeney, director or the the public AB well eg to premote the Administration officials have been cA Yes signature cerditation supvian, БОУЗ U.S. avistion Industry. "The PAL is cup: 62688 in a highly consentions Debate that Lf be believed the plane was unite poind to regulate the manufacturers is about a possible TT. design problem that he'd have stopped certification "in airline sifety," compleing one raises serious Daisey fasues. JUSINGS The sirplans has EVERY Inspector Washington lengues how um- WEEK reviewed scores of insernal PAS 75 required to Test" portant the plane II to Bacing's endra documents and held langthy interviews But (well-placed PAR ADUPORS Bee the exiptence." with numerous midiaval engineers and issue differently, They believe that pres. McSorency denies that contention. anloty inspectors at the 4dd factuding turn to meet Haring's planned certify While aircraft manufacturers "try to several he worked directly on the T77 cation date for the blane-Apr. 19, hold to their paptification dates," be 51 BUSINESS ween JANUARY 29. less JAN 18 '96 06:58PM DOT/OST PUBLIC AFF JAN. - 18' 96 (THU) 19:38 FAA APA-500 WILLETT TEL 202 267 5358 P. 003 JAN. 18' 961THU) 18:21 TEL:2028938583 P-003 JAN-18-1996 17127 BUSINESS WEEK P.04 DECUT that might severely destabilize WAS THE 777 ADEQUATELY TESTED? the ipinns. Such branks are not un- known: 24 the Jec airlinors have JE- h these exempts from unders PAA documents parted Pass lade brokks since 1990. N. agency afficiate question Boring's servey date on au m Brough no Jun have resulted, Pad and Boring indially result LA perform. mare Larpy "bay expents ! chul the gronter eise diwnien: =: the 7773 DIXOCU would like Tich MP mare dascabilia- ne They END LY&E the 777 cockpie might Phake x bodly thru place could not read the Hight instruments, in- Teasing the risk of . crash. And the an - gars, they say, remains inkleer. Indeed, continued conserns ave led LAS 54A to consider new rec in Br. Wistion with the avia- on industry Deephs the corries The CORPCES say acing to have done only LLA- tasting k. QB how the 771 would * if a birth kroke. And with no POE. Mone B 25 tooks specifically Faquir- -18 such date the PAR appliers to have The FAA's complaint; backed down days before Boeing's analysis Cont-From L ye Florg bld Le get Bacing CO de TITTE chapugh cases. "Baning did of a blade break was Boeing's response: notice teyond the bare minimum PE "inconclustve." The "The analysis and quiraments. 14/1 one FAA engineer. DISCRIPT EVER. Top PAA officials whe analysis and flight data provided more manely deny ** TDAY Indiat their test experience "do than substantiate LETTLE of the F are sufficient Mo- Sweeney the plane would bear no not adequately prove compliance Boe- increased risk of defestilling vidraziona that the equipment as ing has no intention If alblada ware LO brask, With the de. migz of the " 'Toakes the engine-im- installed in the 777 of doing any further balance Issume & ste mare important to will survive." testing." del with," he maintains it. does net in crosse Line charcel of pllow' lodng con- ant Instead no argues that wheations mainsains that the PAA Aid not ruch LA bu panalties. It's an economic insue." would be no -= than chose as of 747. mett Boains's as But this Is not in the SRD of the 777, the Has and Asy he adds TX pollors would be able the first time the PM has fuced cridciam Busing worked together more dady tomather. cc.tral simply by lewering or Deine 200 clase to planemakers. In 1 than usual: 4 purt of its strengy for though FAA BOUTCOE say Canara' Accounting Office report on the grouns the 777 up and Aying in record this solution is ITSTEF dispute. The three FAM'F certification practices published time, Boolng and the FAA assed to a makers of for the 777-Patt last year. the agency was criticlated for cooperative sertification process from + Whithey, Centeral Elocuric, and Rolls exercising week oversight. Normally, the Doeths kope the agency In- Roycc-also dety any problems. Wa're Lne agency works deady with the men- formed of the plane's design at away confidence citils a completely reliable ufactiirar during the final states of de stop. allowing problems LB DO worked and depanded: gireraft-engine combl- sign of B new plane. After condueding euc they ITEMS nation.- Reys a Prace & Whitney Hight tests and reviewing compliance The debate over sucry name from applicamen. with FM regulations, the agency is ND concerns about the size and weight or For now, Becing If the only ment peand to rpprove new planes only when the part blader in the 7777 unitually focturer to face such questions because all problems have been worked out large for another Because the TTT WM the TTI ontial is che press angine COZY TIE-UP. Buc the EAD report aid- designed with No the rether than ever put en a commercial alrowh But eized the agency for depending exter the tour common in proviews long-haul the industry *end is moving toward gively on own engineers models must Md the 747, to fan bludes 5 bigger ingrea and Fivels won't выдре to approve much certification Leating. Dister and for habrier In their largose that debate. us in not just = Boaing Md Sleven Calve, the reports sothor, configuration. for arample, the 777 fan problem." MY Thomas Bowlrow, En ways the are also found, that the FA4 blades bulk by Pract à Whichey each TAA engineer ho worked dearly OR approved new planse even when tanks weigh W pounds-mare Use three ames 277 certifich remained. "AL the and, there are lots of the welght of there built for the 747. The P.CO sodes is central LO Boe- chings the Tab is trying 50 l'esolve, but Therain lies the problem: Numerail inp & maintain its lead in the manufacturers have cold there planes," FAA engineers trapectors fear that E michal market with 350 to 400 aeats, REYS Crive They have to make de- one of therse givent blades ware 5 Dreak the 777 competer with the A-840 and liveries by specific detas or they La flight, transanders vibrazions canld AMO jumites produced by the Eurol " 1006 57 6/5'd JAN 18 '96 06:59PM DOT/OST PUBLIC AFF JAN, - 18' 96 (THU) 19:38 FAA APA-500 WILLETT TEL: 267 5358 P. 004 CAN 18.961THU) 18:32 L:1028988383 P 004 JAN-18-1996 17:29 BUSINESS WEEK P.05 The Corporation Pean consortium Airbue Industria and the FAST Septicle nifice, warned Roading M Mar 4. 1196, otter, the FAA washed with the KD-11 from St Louis' Ms- that 11 (t wanted La win m eartification chat Booling's analysis P&S "Theanclu- Donnall Douglas Ours. With world de- on Apr: LB, it - "smperative" to pro- given and bat 14 TODON) not edequally mand entimated at more then a,DoD for vide MON by Jar. 31. Naicher produc that the equipment xa installed in such jumber suar the лехідено decades, Gender ner Riggin would comment. 20 in will SUN the Virration lovels Bodne Quince an the 777 to Fuel - Becing's response RAMG on Feb. 7. In Buing projecte for yours. IL "orll be Boaby's meet in- D letter to Rigzin, Timothy E Hickons, A month Later PAA encincers were portant product." Mays Edmund S. Becing's 777 manager, 6c- self walting. According to E internal Creadles publisher of Modiat knowledged chat Docing was Also - meme dated A.br. 10-16al nine days in Ponte-Vadra Bauch, FAX By 2000, no carned Lbout the affects af an unbal- before FAA warned estimates the 799 account for 612 Ancad engine. Bus be argued chol Beeing that the plane could net be ag. billion 5 Annual - of Bacing's preved without such data. But Bocing projected new-airent revenues. 777 SALES TAKE OFF граiл disnissed the demands. The The 777 promises & benefits (or the analysis and duca provided more thus airlines, son. Analyal William B. WHIL Film substantiate compliance." Bocing ye- Isw Jr. of Portland (On) brokerage Pm. UNITED AIRLINES 14 sponded. refort, there in na need doe Crust Securities estimated the two- for additional to ting. and Bosing has no cagine plane could COG funl COSTA 20% ENCLAPORT AIRLINES M " intention of daily any Airther taxting." below the 747, oven M It more ALL NIDPON AIRWAYS 21 12 "НДУСИ BHETORIC.- de- cargo and passengers. That has wan SAUDIA U seribas such " COMMON "Zt's planty of sustomers United Airlines the in the callification inc. oldered 34 and took delivery of SPICISH AIRWAVE 14 IS products FLUE londs to the mary have the fust of them In May. Boaing has JAPAN AIBLINES 19 to today." he tays BuL other Гла afficials Hold 245 of the planes to British Air. 11 argue that MALAYMA AIRLINES such A late, heated exchange ways Japan Alrlines Continantus Air- is unumal. There's always 23 cortain THAN AIRWAYS " lines, and others. Although BOWD of amount of disagreement," says Jack A the questions about engine Imbalance, CATHAT PAEIFIC AIRWAYS " " Bain, who entired in 1985 all the man- 'wo're pleased with the performance of KOREAN All " I april B the PARK North East prepeller the sirplane and of the linging " myl dire totals, the primary wat Gardon A. McKinsio. United's 777 Drd OTHERS se n requiremble ongine artications, "But gram manager. TOTAL 203 120 generally, . conduction clocan't dogan- The PM debate crystailized in No- erato into such hersh rhecards." BITA TOLE into LINELLI wember, 1983, when a 747 of Cathay PM In A meeting on Apr. 12 FAS angt- one Alrways Ltd. Gew I-Tan blorie over A are specified neveral the Pacific Ocean. BORNO'S cests Socing sdu need. FUTURE VIRCES The break produced on THENTI bd 5 do to allay lta can- such severe viarations terms: ThE Fre asked Ear A that the pliots considered "full sirplans Last" in the air 9 disching the plans tn the show that the plane pould continue 9 3016 Although the fundion The - also asked Beeing to quentually landed doe simulation using the ax- suchy, the incident peeted level DE vibrations DYAP a az- TAB engineern then 19 Realam had laked into the baue and tended time period, to show that pflets viewing the 777, In May. 199d, Darrell considered the plane asia, Noneogh it untill be able b read their insuruments. M. Pederson manager of the FALA'S VL Without documentation" to demon- And they askell about potential for in- transpart-Airplane directorate, ordered street in claim-sinco It Wes under no netion to passepress. Booing 9 produce that a ander Can-blade "regulatory requirement E provide it Finally. en Apr. is and 14, Beeing nb loss would not the continued Under continuous preseure from PAA mitted additional documentation. in re- ease flight and landing of the 777." PEd- engineers however, Besing partially - aponse to demande for a Full plane case erson vm act by che FAA to lanued On Feb. IQ Bacing - the M.Swenney R that no use N test comment, but McSweaney now down- agency information these it claimed UM then done Grand Boring submitted plays such team TAB Padine in- showed the leval of vibrations a 777 data culled from 1,000 previous Might cident made are to be "Ir more se would ruffer if a fun blade did brank In the Mogoth t, Bacing argued, plots rious" than 11 wM, be INA. a Lorten Hickcox anned that the a had soon an our under havy Danis EXCURES Neverthricas, over pacted. vibrations would be Tourn clans with R However, the the following year the PAS Beat & able"- Blanc that passangers and pi- nour WHY made up A rough- stream of latters to Bosing asking for Late would ramule - incidents ach harding no such proof PAA officials complained Bat the latter did betwa LD mollity FLL main than an moonds About Boung? lack of response: Don engineers' In documents, the As for B Last ald E. DELIVER of the airtrame FAA argued that Roading had mmply 23- - that pDots and other ere brand al the FACE serteck 14 Endings without providing members Would be able partorm., place In SeatUs, wrote in ane Internal date a back them up. La one bring Besing sted rurineering acadies that document chan Roaths always had "ORE paper. ELL envineer Jeney E. Duren It claimed showed Usat the vibracione excuse of shocher" for not providing complained that Dosing's Andings wan would be to these esperienced the data Finally, in - letter Assed Jan Incomplate" and unikely 5 provide - B 747. Boaing also submitted a Pe- 26. 1825, Danald L Riggts, manager of "ererlible of its claims. And in DOLL from and of iss - represents so AUSIPESS WEEK , JANUARY a 1995 6/9'd JAN 18 '96 06:59PM DOT/OST PUBLIC AFF. JAN. - 18' (THU) 19:39 FAA APA-500 WILLETT TEL: 267 5358 P. 005 JAN 96(THV) 18:23 TEL:2028988383 005 JAN-18-1996 17:30 BUSINESS LIEEK P.06 lives. The Bozing rap traveled a 300- oral flight simulation facilities and ten- dervent vibration tosts at lawsls that Boxing claimed "ware representative of blade-auc windmilling Af- top the rep reported that he had no trouble reading. writing or spenidng during the vibrations Books argucal thes there with B need of purther test- inc. M for again concluded Bat, under this - vibra- tion levels IL estimated sach lawels "would not cause injury 10 passengars." Apperently, that we though to par- Lary cop Pra aliders On Apr. 18. Ped- erson автвед chaz Bacing|bad provided eduquate data The next day, the plane won certification on schedule NEW RULIST BUT allia within she agency may the tants Bacing submitted remained a below the standard they had demanded for mare: B yours and did HECE to allay chair Tears, One TM inspecter closely involved in the 777 sertification the 767 cam- partner as "apples to cranges He and athers also say chac rach tasts do na Accreate the vibizdon Levels pleas would experience QUOT & lengthy time period. "Unjess you put a dummy by a mant and shake it for un extended pariod of time BE expected lovels, you haven't proved B thing." shyd the inspector McSweney defends the decision a move thead with the cordification "Dan gone imbalance) to & Surly hew - be says. "We'n all Lbs time." Indeed, the subject has become one of the main agenda Icems dide Aviation Rulemalding Advisory!. Committee (ARAC). a advisory enrup of officials that develops Daw adrline regulations The group la stadying pasable changed in The rules Meeded LD Beal with the dengers of typthed by Mrgor origines. Numarous ARAD group mom bern asknowladge that current regular dene-developed in the 1950s, when for blades was ha amaller-do not require adequate testing for Lerge engines "Im- belance is more of BY INIC than 11 - in che past," asys Larry HanDon TEAM- ager of leads and dynamics far Cult ДЕУВШЕВ Aerompace Carp. in Severnah, Gs. was add reviewing what the ro- quirements ought to B. The FLATE McSwashey yreed thore is a need for more study. started this debate: we wanted the details," he теуь One remain being considered. alemgaide & drop tn the plane's requiring - ploriva below to be Installed) a class in an emergency the affacted argina world be blown on the wing. Und CREDS bafety insues are more dearly reselved, that may be the Dont the to offer. By Cludatina Dol Valid and Michael Schroader LTK Washington so BUSINESS TEEK JANUAR 79. 1990 TOTAL P.86 6/2'd JAN 18 '96 07:00PM DOT/OST PUPLIC AFF Public Affairs Contact: Diane Spitaliere January 19, 1995 APA BRIEFING PAPER News Organization: Business Week Subject: Certification of the Boeing 777 Reporter: Christina Del Valle Scheduled to Run: Monday, January 22 FAA Official(s) Interviewed: Tom McSweeny and several members of the agency's Seattle Aircraft Certification Office. Background: Christina Del Valle has been conducting interviews of FAA officials, as well as Boeing employees, on the certification of the Boeing 777 for the past two months. The genesis of her article is that FAA "caved in" to pressure from Boeing and certified the aircraft without proper testing and analysis. In particular, she is citing an engine fan "blade out" test that she believes was not properly conducted, causing the aircraft to be unsafe. She is using FAA memos to Boeing to support her case, even though it was explained to her that they are predecisional documents and part of the routine certification process. She is claiming that there still exists a debate within FAA and industry as to whether the aircraft was properly certified. Because FAA officials -- as well as Public Affairs officers involved - expressed concerns about the accurate reporting of this issue, a meeting was established with key editors at Business Week and Sandra Allen, assistant administrator for Public Affairs and Tom McSweeny, director of Aircraft Certification. Key questions from the interviews spanning a two-month period are as follows. Q1. The FAA prompted Boeing to submit additional vibration data on the engine fan "blade out" issue right up until a few days before the Boeing 777 was certified. How is it possible that Boeing complied with FAA's request so quickly? Further, how did the agency adequately evaluate that data in such a short time frame? The process of certification and the development of the analytical tools to accomplish that certification took several months, and in some cases, years. The fan "blade-out" condition dictated three basic questions that needed to be answered: (1) Was the structure able to withstand the unbalance loads?; (2) Was the crew able to continue to safely fly the airplane during the vibration event?; and (3) were the flight critical airplane systems able to sustain the vibration without failure? The issues that were summarized in a letter to Boeing a few days before FAA approval were a list of things remaining to be completed before certification - many issues had already been resolved to our satisfaction. With the resources Boeing had dedicated to the "blade- out" issue, they were able to respond in the short time available. In all, Boeing had over 90 people working at one time or another on the blade out issue 6/8'd JAN 18 '96 07:00PM DOT/OST PUBLIC AFF Q2. With reference to the engine fan "blade-out" condition, why did the FAA opt to conduct simulated tests, as opposed to actual testing? The FAA originally requested that Boeing demonstrate in flight that the B-777 was capable of sustaining the vibration from the "blade-out" condition. Boeing convinced us that during the more than 1000 hours of flight testing, the airplane encountered enough high buffet and vibration test conditions that had already demonstrated the ruggedness of the airplane systems. The FAA reviewed that data and determined that the level of vibration encountered in flight was similar enough to that predicted for the "blade-out" condition. Thus, the flight tests were already accomplished and further testing was unnecessary. Q3. There was real concern within FAA over the 1993 Cathay Pacific incident where a 747 experienced an in-service "blade out" condition. That incident prompted an intensive look at this very issue during the 777 certification process. Does FAA feel confident that Boeing adequately addressed all concerns raised over this issue? If so, what data did they present to allay your concerns? The Cathay Pacific incident was the first time it became apparent that the new, larger fan engines had a greater impact on airplane survivability should there be a fan blade failure. That knowledge caused the FAA to immediately require Boeing to assess those failure consequences during the B- 777 certification program. Boeing presented seven reports and other technical data that fully responded to all the issues raised by the FAA. That technical data was found acceptable by the FAA. The data was in the form of analysis, laboratory test data and flight test data. All of the data is considered to be proprietary or trade secret data and has not been released to Business Week. That is somewhat unfortunate as it reduces our ability to definitively show Business Week what we used to make our decisions. The writer appears to have concluded in the absence of this data that the FAA did not properly certify the airplane. Q4. If there is such complete agreement within FAA and Boeing on the certification of the 777, why is the issue of engine imbalance due to a missing fan blade still under review by the Aviation Rulemaking Advisory Committee? With the Cathay Pacific incident, the FAA saw a need to review the certification of airplanes with fairly large fan engines (MD-11, B-747, A-330, A-340) to make sure there were no unsafe conditions should one of their engines suffer a blade failure. After the B-777 certification, the FAA called a meeting of all of the interested parties and discussed what should be done to in- service airplanes to better protect them against a possible "blade-out" condition, as well as opening the discussion to explore new ways to certify for this condition. This is all part of the agency's goal to achieve zero accidents. 6/6'd JAN 18 '96 07:00PM DOT/OST PUBLIC AFF. ferd wero 10 October 1995 MEMORANDUM TO THE PRESIDENT FROM: HAROLD ICKES D gency Adminis tradem RE: FEDERAL AVIATION AUTHORITY(?) Attached is a copy of a memo to Leon and me from Bob Litan, of OMB, explaining a "white paper" prepared by Litan's staff regarding the FAA's problems with its modernization and maintenance programs. Also attached is an 11 August 1995 memo to Leon and me from Secretary Pena regarding air traffic control outages. 9/29/95 V Somy Hall i/ 2 - meach tell low pen backs that they must be me vocal on the critial mus . + Prable recture whiches -- PER 3 Printyated so defferent innue - the this worl X * C PEF- concerted 22/23 out C Haw to true it that into mutes U New mes to seper chone the medicaly 1 N New strayed shetow out or od - reclime / medical - Frunk Coeven if - rust get Bill clutus ~ electad coopers - can get two Hame both- - - 95 project - - agent 28/30 most vulumble republice licune freshmen - paleme ussue - e 4 to bellow as cuty -7 may - received - W ant to mm TV spat - new $ : lou, ... ARSCMF 300,000- 1199 & New - bo at ad in NM 2 or to Goun 50 requested & the out - ratted - than wongery about debquates a w where o'Kerpe - whenter T alto to orkente Fral come- AFSUME - Case-by- - case - "1st crock" means they compete for of too i> still m consederation w/ others - Shuldiner says Ballenoff signed off on this 1st they privatized = Sec-8 j SEIU was it -other functions smaller in scale NOV 09 '95 07:24PM AVIATION INTL AFFAIR P.1 U.S. DEPARTMENT OF TRANSPORTATION 400 Seventh Street OFFICE OF THE SECRETARY Washington, DC 2059 OFFICE OF THE ASSISTANT SECRETARY FOR TRANSPORTATION POLICY Number of Pages including this Page: 5 Date: 11/9/95 TO: J.O'CONNor Fax. Tele. 456-7929 456-6350 FROM: JOHN LIEBER DEPTUY Assistant Secretary for Transportation Policy (202) 366-4450 FAX: (202) 366-7127 FAX MESSAGE: NOV 09 '95 07:24PM AVIATION INTL AFFAIR P.2 November 8, 1995 TO: Jennifer O' Connor FROM: Janno Lieber June RE: Labor Concerns about FAA Personnel Reform You asked how we are responding to labor's concern that the personnel reforms provided for in DOT's appropriations bill would effectively decertify the unions or otherwise change their status vis-a-vis the FAA. The Administration worked closely with the unions in developing its corporation proposal (which, incidentally, had been suggested by NATCA during the campaign). Throughout our push for reform, NATCA has consistently cited the need to improve conditions for union employees as a major rationale for change. The decertification concern was never raised -- either by labor or by anyone else looking at the bill -- until the end of the appropriations conference. In response, the conference committee -- with our support -- included report language clarifying that the intent was to maintain the FAA-union relationship. See attached pages from the October 20, 1995 Congressional Record. In addition, Secretary Pena has written to the unions reassuring them that no changes will be made in that relationship. A copy of that correspondence is attached. Of course, we should provide whatever additional assurances are needed. The unions want to build back in the legislative guarantee of recognition of the union, primarily to protect against possible attempts for future Administrations to dismantle the unions. The McCain bill -- which, as you know, the Administration is supporting and which unanimously cleared the Senate Commerce committee earlier today -- does this. Also attached is the draft response to all the PATCO letters. Please let me know if you need other information or materials. attachments NOV 09 '95 07:25PM AVIATION INTL AFFAIR P. 10514 CONGRESSIONAL RECORD-HOUSE October 20, 1995 section 1003 of the Intermodal Surface Trans. velopment and Implementation of the new Amendment No. 186: Retains language you portation Efficiency Act. The House bill con- acquisition system to the FAA adminis- posed by the Senate expressing the serise of tained no similar provision. wator. not the Secretary. The provision the Senate regarding 8 dispute between the Amendment No. 872: Delotes Senate provi- takes effect on April 1. 1996. as proposed by United States and Japan over implements. sion that would have allowed states to trade the Senate. Lion of the current U.S.Japen bilsteral svin- in unobligated balances of funds authorized Amendment No. 176: Reduces bonuses and tion agreement. The House oill contained no or appropriated for highway demonstration cash awards for Department of Transpor- similar provision. projects to mitigate reductions pursuant to tation employees by $752.852 as proposed by Amendment No. 187: Includes Senate lan- section 1003 of the Intermodal Surface Trans. the Senate. The House bill included no simi- guage which modifies provisions of section portation Efficiency Act. The House bill con- lar provision. 339 of the Department of Transportation and tained no similar provision. Amendment No. 177; Limits funds for De. Related Agencies Appropriations Act. 1993 Amendment No. 173: Deletes Senate provi- partment of Transportation advisory com- (Public Law 102-388). The House bill included sion that would have established interstate mittees to $850,000 as proposed by the Sen- no similar provision. compact infrastructure banks. The House ate. The House Dill contained no similar pro- Amendment No. 188: Deletes Senate provi- bill contained no similar provision. vision. sion that repeals section 404 of 23 U.S.C. and Amendment No. 174:-Retains, with amend- Amendment No. 178: Includes provision Inserts language that walves the freight con- ment. language in the Senate bill requiring that enables the Secretary of Transportation nage limit for rail lines benefiting from the development of a new personnel management to enforce and continue in effect the exemp- Local Rail Freight Assistance (LRFA) oro- system for the Federal Aviation Administra- tion provisions of the Motor Vehicle Infor- gram for a project near Wahpeton. North Da. tion. The House bill contained no similar mation and Cost Savings Act. The House bill kota. The funds are proceeds from LRFA provisions. The conference agreement in- contains no similar provision. loans that have been repaid to the State. AD- cludes the following changes to the Senate Amendment No. 179: Provides that the proximately $2,300.000 may be used for the bill; (a) the official responsible for develop FAA Technical Center in Pomons. New Jer. partial cost of a privately owned rail spur. ment and implementation of the new person- sey be designated as the "William J. Hughes siding, and loading facility. nel system is the FAA administrator, not Technical Center", as proposed by the Sen- Amendment No. 189: Includes Senate lan- the Secretary: and (b) the new system shall ate. The House bill contained no similar pro- guage that would have delayed the restric- not waive current law relating to veterans' vision. tion on the availability of certain highway preference and unemployment compensation. Amendment No. 180: Provides that no funds funds and designated the National Highway The provision takes effect on April 1, 1996. as may be used to close Coast Guard small boat System. The House bill contained no similar proposed by the Senate. stations or subunits. and allows flexibility provision. Management-labor relationship.-The con- for the Secretary to implement aystem-wide ferees believe that a harmonious manage- management efficiencies. as proposed by the TITLE IV ment-labor relationship within the FAA is Senate. The House bill contained no similar Amendment No. 190: Restores House lan- important to the effectiveness and efficiency provision. The conferees support Coast guage deleted by the Senate which provides of the national airspace system. The con- Guard downsizing and streamlining efforts in for mandatory standards and procedures gov- ferees do not intend that the personnel man- general. but find that in this instance the erning arbitrators and arbitration of labor agement reforms included in this bill force Coast Guard's methodology failed to fairly disputes in the Washington, DC area. the disestablishment of any existing man- consider distinctions between small bost sta- TITLE V agement-labor agreement or lead to the dis- tions, such as water temperature and sur- solution of any union currently representing vival time. leading ultimately to a proposal Amondment No. 191: Deletes title V of the FAA employees. Instead. the conference which lacked critical justification. House bill which restricts the use of funds agreement provides the administrator of the Amendment No. 181: Deletes Senate lan- for improvements to the Miller Highway in FAA flexibility to redefine the management- guage that would redistribute funds made New York City, New York. This prohibition labor relationship to the benefit or the agen- available for obligation authorized by item 18 included under amendment numbered 167. cy and all of its employees. 21 of the table in section 1105(f) of Public CONFERENCE TOTAL-WITH COMPARISONS Administrator's working group.-The con- Law 102-240 to carry out additional surface The total new budget (obligational) au. ferees have included bill language which re- transportation projects in Louisiana. The thority for the fiscal year 1996 recommended quires the FAA to develop new personnel and House bill contained no similar provision. by the Committee of Conference. with com- procurement reform plans. with the goal of Amendment No. 182: Includes Senate lan- parisons to the fiscal year 1995 amount. the accelerating the modernization of the FAA guage that provides for the transfer of cer- 1996 budget estimates, and the House and in the most efficient and cost-effective man- tain federal property in Hoboken. New Jer- Senate bills for 1896 follow: ner. The conferees believe the success of this sey. The House bill contained no similar pro- plan will. in part. depend upon the assistance vision. New Dudget (obligational) of the entire aviation community. The con- Amendment No. 183: Deletes Senate lad. authority. fiscal year ferees would like to Bee high level input from 1995 $14,214,401,000 guage which requires a five percent reduc- the aviation community. The conferees tion from fiscal year 1985 levels in the energy Budget estimates of new therefore strongly recommend that the ad- costs of federal facilities used by agencies (obligational). authority, ministrator consult with the widest array of funded in this Act. The conferees are aware fiscal year 1896 35.468.964.831 interested parties in developing the new per- that this issue will be addressed government House bill. fiscal year 1996 12,810,725.806 sonnel and procurement systems. The admin- wide by the Treasury. Postal Service and Senate bill, fiscal year 1996 12,613,811,567 istrator should consider establishing B work- General Government Appropriations Act, Conference agreement. fis- ing group to assist his efforts. The working 1996, cal year 1996 12,660,532.831 sroup could include. but not be limited to. Amendment No. 184: Deletes language pro- Conference agreement representatives from the air carriers. general posed by the Senate requiring the Secretary compared with: and business aviation. airports. aircraft of Transportation to conduct 8 study of com- New budget manufacturers. airline and FAA employees. Detition and air fares in rural aviation mar- (obligational) author- and the Office of the Secretary of Defense. kets 18 the United States. ity. fiscal year 1995 1.533,868,189 Amendment No. 175: Retains. with amend- Amendment No. 185: Includes Senate lan- Budget estimates of new ment. language in the Senate bill requiring guage that would provide $1,000,000 to estab (obligational) author- development of 8 new acquisition manage- lish and operate the Rellroad Safety Inscl- ity. fiscal year 1996 22,788,432.000 ment ayatem for the Federal Aviation Ad- tute. The House bill contained no similar House oill, fiscal year ministration. The House 0811 contained no provision. The conference agreement also,ad- 1996 -130,192,975 similar provisions. The conference agree- dresses this issue under amendment num- Senate bill. fiscal year ment changes the official responsibile for de- bered 6. 1996 +65,721,294 NOV 09 '95 07:26PM AVIATION INTL AFFAIR KIT P.4 8 THE SECRETARY OF TRANSPORTATION WASHINGTON, D.C. 20590 STATES . AMERICA October 20, 1995 Mr. Barry Krasner President. National Air Traffic Controllers Association 1150 - 17th Street, NW, Suite 701 Washington, DC 20036 Dear Barry: As you know, the Clinton Administration and the Congress are currently pursuing several avenues to achieve Federal Aviation Administration (FAA) reform. Several of the legislative initiatives grant the FAA authority to establish 8 new personnel system in some areas, while preserving coverage by Title V of the U.S. Code in other areas. The Clinton Administration has voiced strong support for the FAA reform proposal introduced by Senators McCain, Ford and Hollings. One very important aspect of their bill is its preservation of the statutory framework for labor-management relations, Chapter 71 of Title V, within FAA. We believe that the preservation of this framework is a necessary component of any reform legislation. Also, we supported and worked to preserve Premium Pay for Controllers, and the Conference Committee agreed to retain Premium Pay. It indeed is unfortunate that you did not raise the DOT FY 96 appropriations bill language with me until Wednesday. October 18, the day the conferees considered this issue. I immediately went to work on this issue but, despite our efforts, we were unable to convince the conferees to clarify the Chapter 71 issue. The conferees included in the Statement of Managers language that makes it clear that no labor organizations are to be disenfranchised by the personnel reform provisions. We strongly support this language. You can be assured that we will continue to recognize and support the existing labor-management statutory framework. Sincerely, Jedisics Pleas Federico Peña NOY NOV 09 '95 07:26PM AVIATION_INTL AFFAIR PP.52 Mr. William A. Burga President Ohio AFL-CIO 271 East State Street Columbus, OH 43215 Dear Mr. Burga: Thank you for your letter regarding my decision to lift the ban on the hiring of PATCO members. Your letter outlines concerns that the Federal Aviation Administration (FAA) is not living up to the intent of that order. On August 13, 1993, I sent a memorandum to the Office of Personnel Management (OPM), stating that "PATCO members should be eligible to apply, without preference, when there are openings with the FAA." Following that directive, OPM worked with the FAA and the Department of Labor to devise a system which would accommodate PATCO members who applied for employment with the FAA, while ensuring fairness and equity to all applicants. Since that system's implementation, the representation of former PATCO controllers among FAA new hires has risen from nothing to 31 percent. Based on a recently completed evaluation of the FAA controller hiring system -- which took into account the current state of the staffing shortages at certain facilities - the FAA anticipates that in Fiscal Years 1996 and 1997, at least 50 percent of new hires for air traffic controller positions will be former controllers. I am confident the FAA will implement both the letter and spirit of the order. Please bear in mind, however, that the FAA budget for Fiscal Year 1996 allows them to hire, at most, 100 air traffic controllers. The FAA will periodically reevaluate their staffing requirements, thereby ensuring that former controllers compete for new positions on a level playing field. I assure you that my staff will continue to monitor this situation. Sincerely, ROUTING SLIP DATE: 12/8/95 FROM: STEPHEN B. SILVERMAN Deputy Assistant to the President and Deputy Secretary to the Cabinet SUBJECT: DOT Tier II Projects John Angell 178 oeob X Lorrie McHugh 166 oeob Don Baer g fl / WW Janet Murguia 112 ew Jeremy Ben-Ami 218A oeob Jennifer O'Connor 111 oeob X Erskine Bowles 1 fl / WW Tom O'Donnell 320 oeob Susan Brophy 2 fl / WW Leon Panetta 1 fl / WW Gabrielle Bushman 197 oeob Ron Klain 276 oeob Barbara Chow 107 ew Nancy Soderberg g fl / WW Michael Deich 233 oeob X Patti Solis 185.5 oeob Rahm Emmanuel 1 fl / WW Doug Sosnik g fl / WW Janice Enright 1 fl / WW Gene Sperling 2 fl / WW Jason Goldberg 2 fl / WW George Stephanopoulos 1 fl / WW Pat Griffin 2 fl / WW Todd Stern/Phil Caplan g fl / WW Marcia Hale 2 fl / WW X Stephanie Streett g fl / WW Karen Hancox g fl / WW X Ginny Terzano g fl / WW X Nancy Heinreich 1 fl / WW Kim Tilley 287 oeob Alexis Herman 2 fl / WW Melanne Verveer 100 oeob Kitty Higgins 160 oeob X Michael Waldman 214 oeob Harold Ickes 1 fl / WW Ann Walley g fl / ww Tim Keating 2 fl / WW Dan Wexler 117 oeob Comments: TIER II FUTURE PROJECTS San Francisco [BART to Airport]: ROD expected- Summer, 1996 NE New Jersey [Hudson- Bergen LRT]: ROD expected- Winter/Spring, 1996 San Juan [Tren Urbano]: ROD Expected- Winter, 1996 Sacramento [South Extension]: ROD expected- Summer, 1996 Denver [SW Corridor extension]: ROD expected- Fall, 1996 St. Louis [St. Clair extension] ROD expected- Fall, 1996 DATE: 30 Nov 95 DEC 07 '95 08: 18PM DOT/DEPUTY SECRETARY P.1/18 Siusha-pill out 00 jap 4/6 propets DISPRIMENT of 1.5kg tet's shd this and to THE DEPUTY SECRETARY OF TRANSPORTATION DOT crew UNITED STATES OF AMERICA WASHINGTON, D.C, 20590 FAX COVER SHEET 19 No. of pages transmitted -- including this page: Ro To : Steve Silverman Telephone : From : Mort Downey Telephone : Re : Message : Followup to last week's meeting The number for this telefax is (202) 366-3937. If you have any problems receiving this fax, please call 366-2222. FTA FY 96 FY 1996 FY 1996 BUDGET APPROPRIATIONS SCENARIO I SHORTFALL REQUEST [ADJUSTED] COMMENTS Existing FFGAs Atlanta-North Springs 42,410,000 41,900,252 509,748 Los Angeles - MOS-J 158,862,500 83,978,341 74,884,159 Dallas - South Oak Cliff 16,940,688 16,737,377 203,311 203,311 WILL COMPLETE FFGA COMMITMENT Baltimore - LRT Ext 22,630,000 15,130,921 7,499,079 7,499,079 RESTORES FY 06 FFGA SHORTFALL Boston - Piers - MOS-2 (So. Sta. to Wo. T1.) 22,620,000 19,810,008 2,801,112 2,056,740 RESTORES FY 96 FFGA SHORTFALL Pittsburgh-Airport Phase 1 22,630,000 22,357,998 272,002 Portland - Westside/Hillsboro extension 108,000,000 128,575,779 (20,575,779) New York - Queens 152,271,712 125,201,949 27,069,763 27,069,763 RESTORES FY " FFGA SHORTFALL; REDUCES OVERALL SHORTFALL TO $7.95 M TO COMPLETE PROJECT New Jersey - Urban Core/ Secaucus 85,540,000 79,285,433 6,254,567 Houston - Regional Bus 22,630,000 22,357,998 272,002 MARC- Commuter Rail Improvements 0 9,879,805 (9,879,805) Sall Lake City- South LRT 0 9,642,195 (9,642,195) SF Area- San Jose Tasman LRT (LOI) 22,617,600 9,879,805 12,737,795 12,737,795 ADDITIONAL FUNDS TO BE USED FOR BART'S AIRPORT EXT. DEC 07 '95 08:18PM DOT/DEPUTY SECRETARY SUBTOTALS: 677,152,500 584,746,741 132,503,538 49,566,688 Less Los Angeles Shortfall: 74,884,159 TOTALS (EXISTING FFGAs]: 57,619,379 TIER II FUTURE PROJECTS IGRANTEE REQUEST SF Area- BART Airport Extension 0 O 0 NJ Urban Core- Hudson - Bergen LRT 0 0 0 5,000,000 PROVIDES FY 96 FUNDS FOR FFGA San Juan Tren Urbano 15,000,000 7,409,854 7,590,146 $,000,000 PROVIDES FV 95 FUNDS FOR FFGA Sacramento LRT Extension 2,000,000 1,975,961 24,039 5,000,000 PROVIDES FY 96 FUNDS FOR FFGA Denver SW Corridor 0 0 0 St. Louis St. Clair Extension 2,000,000 2,000,000 0 5,000,000 PROVIDES FY 96 FUNDS FOR FFGA 0 Dallas RAILTRAN [CR] 15,000,000 5,927,883 9,072,117 4,000,000 ADDITIONAL INCREMENT TO CONTINUE PROJECT; PARTIALLY RESTORES FY 95 FUNDING REQUEST Fort Lauderdale, FL- TRI-RAIL [CR] 25,000,000 9,879,805 15,120,195 5,000,000 ADDITIONAL INCREMENT TO CONTINUE PROJECT; PARTIALLY RESTORES FY 96 FUNDING REQUEST LOSSAN (Los Angeles-San Diego, CA) [CR] 10,000,000 8,397,834 1,602,166 1,602,166 FULL y RESTORES FY 96 FUNDING REQUEST TOTALS ITIER = PROJECTS]: 69,000,000 35,591,337 33,408,663 30,602,166 GRAND TOTALS: 746,152,500 620,338,078 £ 1,028,042 80,168,854 P.2/18 DEC 07 '95 08:18PM DOT/DEPUTY SECRETARY P.3/18 BART EXTENSION TO SFO IMPLEMENTATION SCHEDULE BART is proposing to build an extension to the San Francisco Airport (SFO) from the existing Colma station, a distance of 6.4 miles. The proposed route will serve the cities of South San Francisco and San Bruno before interfacing with and paralleling the existing CALTRAIN commuter rail line. The line then follows a curving aerial alignment to access the airport. The route would also continue to Millbrae along the CALTRAIN right of way. The route will have 4 stations and utilize a combination of existing and abandoned railroad rights of way for the majority of the locally preferred route. - The following is a summary of the anticipated time frame for the development and completion of the BART to the Airport extension project. May, 1993 FTA permission granted to enter preliminary engineering; award of $22 million to conduct PE granted. July, 1995 Amendment provides additional $33 million to complete PE and finalize FEIR/FEIS for the revised Locally Preferred Alternative (LPA). Spring, 1996 BART/Sam Trans certify FEIS and adopt project. Summer, 1996 FTA approval of Record of Decision (ROD) Fall, 1996 Conclude FFGA negotiations with FTA Fall, 1996 Award contract for D-BOM Winter/Spring, 1997 Initiate Construction Summer/Fall, 1999 Revenue service begins Total Cost: $847 million - $1.269 Billion Federal Share at 75% (*) $600 - 800 million (new starts funds) Not to exceed 75% per MTC Resolution 1876 DEC 07'95 08:18PM DOT/DEPUTY SECRETARY P.4/18 HUDSON-BERGEN LRT [URBAN CORE] IMPLEMENTATION SCHEDULE The Hudson-Bergen LRT project is an major component of the Urban Core program designed to significantly enhance mobility in the NE New Jersey area. The total project is comprised of a 20.5 mile, 33 station between the Vince Lombardi P&R lot [off the New Jersey Turnpike] in Bergen Country to Bayonne in Hudson County. The line passes through major activity generators and connects with commuter rail, bus, PATH trains and ferry services. The first operable segment, a 10 mile section runnning between Jersey City and Bayonne, is projected to COSI $600 million. The following is a summary of the anticipated time frame for the development and completion of the Initial phase of the Hudson-Bergen project. August, 1994 FTA permission granted to enter preliminary engineering; award of $ million to conduct PE granted. Winter, 1996 NJTC certifies FEIS Winter/Spring, 1996 FTA approval of Record of Decision (ROD) Spring/Summer, 1996 Conclude FFGA negotiations with FTA Fall, 1996 Complete final design Winter, 1997 Project Construction Fall, 1999 Revenue service begins Total Cost (1st Operable segment) : $600 million Federal Share (Same as total costs- NJTC applies toll revenues used for transit purposes as local share) DEC 07 '95 08:19PM DOT/DEPUTY SECRETARY P.5/18 Hudson-Bergen Waterfront Light Rail Transit System Northern New Jersey (October 1995) Description NJTC proposes to construct the Hudson-Bergen LRT project, a major component of the Urban Core program designed to significantly enhance mobility in the NE New Jersey area. The full project involves the construction of a 20.5-mile, 33-station at-grade LRT line from Vince Lombardi Park-and-Ride lot [off the New Jersey Turnpike] in Bergen County to South Bayonne, Hudson County, New Jersey. The line passes through Port Imperial, Hoboken and Jersey City. The outer ends of the line will provide 8,800 park-and-ride spaces while the core routing will serve high density commercial and residential centers in Jersey City and Hoboken, connecting to bus, ferry, PATH and NJT commuter rail services. The total project COSI is estimated to be approximately $1.0 billion. Patronage forecasts project that the line will be carrying in the range of 100,000 daily passengers by 2010. NJTC has selected a 11.5 mile "First Construction Stage" that serves the Hoboken Terminal, Westside Avenue in Jersey City, and East 34th Street in Bayonne. The cost of this initial segment is estimated at approximately $600 million Later phases will extend the line north to the Vince Lombardi Park-and-Ride lot in Ridgefield, south to West 5th Street in Bayonne and west to Route 440 in Jersey Citý. Status In February 1993, New Jersey Transit selected, as its locally preferred alternative (LPA), a 15.3-mile, 24-station at-grade LRT line from Vince Lombardi Park-and-Ride lot through Hoboken and Jersey City to Route 440 in Southwest Jersey City. Later in 1993, NJ Transit added a 5.4-mile, 9 station extension to southern Bayonne. In mid-1993 NJ Transit initiated PE and the preparation of the final EIS on the LPA. The environmental process is expected to culminate in the issuance of a Record of Decision (ROD) by FTA in the Winter/Spring, 1996 timeframe. NJ Transit has decided on turnkey implementation of the project. Preliminary engineering is underway and a consultant has been retained to assist in packaging the turnkey documents and identify possible opportunities for equity participation by the successful proposer. DEC 07 '95 08:19PM DOT/DEPUTY SECRETARY P.6/18 Section 3031 of ISTEA requires FTA to negotiate and enter into a full funding grant agreement providing no less than $634 million for those elements of the New Jersey Urban Core Project which can be fully funded in FY 1992 through FY 1997. The Waterfront Project is identified as one of eight elements which would be eligible for funding. In fiscal years 1992 through 1995 Congress appropriated $330 million for the "New Jersey Urban Core Project" which includes this project as well as the Secaucus Transfer, the Newark-Elizabeth Rail Link and other projects [Congress earmarked $79.3 million for the Secaucus Transfer in FY 96]. FTA obligated approximately $29.1 million through FY 1993 to support this project. Another $76.7 million was awarded in FY 1995 ($26.2 million in January and $50.5 million in August 1995). Total federal funding awarded to this project is $105.8 million as of the beginning of FFY 1996. Justification ISTEA states that the Urban Core project is not subject to the New Starts criteria. Mobility Improvements. The proposed project would provide guideway transit service to existing and proposed new developments along the New Jersey waterfront It would provide internal transit circulation along the waterfront, and would connect with NJ Transit Commuter Rail service at Hoboken, with PATH trains to Newark and Manhattan and with the Port Imperial Ferry from Weehauken to Manhattan. The original LPA (without the Bayonne extension) is estimated to save almost 22,000 hours of travel time daily over the TSM alternative. Park and Ride lots in Jersey City and Bayonne will intercept drivers bound for the new offices on the NJ side of the Hudson who are presently caught in tunnel traffic. Cost Effectiveness. The cost effectiveness index for the original LPA is $5 per new rider and the Bayonne extension by itself is estimated to have a cost effectiveness index of less than $2.11. Environmental Benefits. Northern New Jersey is a "severe" nonattainment area for ozone. The region is categorized as a "moderate" nonattainment area for carbon monoxide. FTA does not have information specifically on the impact of the LPA on regional air quality. However, the First Construction Stage is expected to reduce daily emissions by about 0.3 percent in the study area and the LPA would reduce emissions by approximately double that amount. DEC 07 '95 08:19PM DOT/DEPUTY SECRETARY P.7/18 Operating Efficiencies. FTA does not have information on how the LPA would affect NJ Transit's operating cost per passenger. However, the LRT line is a small fraction of the overall NJT system and should have minimal impacts. Local The financial plan for the FCS has not been finalized. The prospective Financial plan is expected to involve a combination of FTA, State and private Commitment capital, with the exact mix to be defined in the course of the turnkey investigations now underway. NJ Transit will use locally funded projects such as the Kearny and Waterfront Connections, and New Jersey Turnpike projects, as local match for Secaucus Transfer, Waterfront and the Rail Link projects, as authorized in ISTEA Sections 1044 and 3031. Since the project is in the PE stage of development and since no financing plan nor source of funds is in place for the entire project or the FCS, the capital financing plan is rated "low." This rating will change if commitments for substantial private sector contributions are received. In 1993 the average vehicle age of NJ Transit's bus fleet was 8.9 years, which is comparable to the national average of 8.3 years. The average age of the rail fleet is 18.2 years. DEC 07 '95 08:20PM DOT/DEPUTY SECRETARY P.8/18 Tren Urbano San Juan, Puerto Rico (October 1995) Description The Puerto Rico Department of Transportation and Public Works (DTPW), through its Highway and Transportation Authority (HTA), has completed a Final Environmental Impact Statement (FEIS) and selected a Locally preferred Alternative (LPA) that is described as a 17.2 km double-track guideway between Bayamon Centro and the Sagrado Corazon area of Santuruce in San Juan, incorporating fourteen (14) stations and a vehicle and trackway maintenance/storage facility. The alignment allows for the future addition of two stations if deemed necessary, one in Rio Piedras and one in Hato Rey. Approximately 40 percent of the alignment is at or near grade. The remainder of the alignment, aside from a short below-grade section in the Centro Medico area and the underground alignment through Rio Piedras, is generally elevated above roadway rights-of way. The estimated capital cost for the first phase of the project is $1.11 billion. Annual operating and maintenance costs are estimated between $28 and $39 million. Under the terms of the turnkey procurement, the selected contractor will be responsible for the maintenance and operation of the Tren Urbano system for a period of at least five years. Under the terms of the agreement, the PRHTA will retain the option of extending this operation and maintenance agreement for an additional five-year period. In 1993, the Federal Transit Administration (FTA) selected Tren Urbano as one of four Turnkey demonstration Projects under the Intermodal Surface Transportation Efficiency Act (ISTEA). The Tren Urbano project will be constructed and operated under a turnkey procurement policy in order to expedite the implementation of the project and to develop the necessary institutional capability to operate Tren Urbano. Status DTPW has prepared the FEIS for the Tren Urbano project. It is anticipated that a Record of decision (ROD) will be issued for the project in December, 1995. Pursuant to the FTA's guidelines regarding the Full Funding Grant Agreement (FFGA) process, an application was submitted to FTA on October 10, 1995. DEC 07 '95 08:20PM DOT/DEPUTY SECRETARY P.9/18 Justification Under the current financing strategy, the project would be exempt from the New Start criteria because the Section 5309 share would be less than one-third of the capital cost. Mobility Improvements. The number of cars per capita in Puerto Rico has grown to levels comparable to the mainland, but highway lane miles per automobile are far below mainland levels, resulting in extreme highway congestion, especially in San Juan. Travel time savings of over 10,000 hours daily are projected for the Tren Urbano project. Travel time savings are calculated separately for work trips and non-work trips and were calculated only for riders who use transit under both the No-Build alternative and the LPA. Travel time savings are valued at $4.80 per hour for work trips and $2.40 per hour for non-work trips. Cost Effectiveness. The most recent estimate of cost per new rider is $3.79 (1994 dollars; 108,515 new riders per day) making this one of the most cost effective projects currently seeking Federal discretionary funds. Environmental Benefits. San Juan is an attainment area for ozone and carbon monoxide. Detailed information on the environmental impacts of this project are included in the FEIS. Operating Efficiencies. In the FEIS, the projected annual operating and maintenance cost of the LPA is $38.8 million. DEC 07 '95 08:20PM DOT/DEPUTY SECRETARY P.10/18 Local DTPW's financing plan proposes to pay the capital costs of the LPA for Financial Tren Urbano from three sources: 1) local revenues from the Puerto Commitment Rico Highway and Transportation Authority (PRHTA); 2) flexible U.S. DOT formula funds; and 3) FTA capital program funds. All operating costs, as well as debt service on PRHTA bonds, would be paid as part of the PRHTA annual budget, established in accordance with standard PRHTA budget procedures. PRHTA generates revenues from gasoline taxes, oil and diesel oil taxes, motor vehicle registration fees, and investment income. The Authority will collect approximately $3.0 billion over the horizon of the cash flow summary These internally generated funds will be used during FY 1996 and 1997 to meet Tren Urbano obligations. The PRHTA has authority to issue revenue bonds to finance transportation system improvements which alleviate traffic congestion. The PRHTA intends to exercise this authority and issue senior and subordinated Highway Revenue Bonds in amounts sufficient to meet its capital construction needs. These bonds will be supported by PRHTA revenues and HHWA flexible funds. In addition to the Congressional earmarked funds that have already been included in the FY 1995 budget ($5.0 million), PRHTA will continue to seek FTA capital funds in an amount of $300.1 million. The Tren Urbano financing plan is rated as "medium/high" because the sources of the local funds needed to back the bonds are in place. Some questions have been raised about the ability of these sources to fund all of the programmed highway and transit improvements. Funding to operate the existing bus system comes from appropriations by the Commonwealth. The Tren Urbano deficits would be covered largely by Highway Authority funds, and the Público (Jitney) operations are privately operated and funded. These funding sources have been adequate in the past and therefore the stability and reliability of funding for operations is rated as "high." In 1992 the average age of the bus fleet for the Metropolitan Bus Authority was 6.2 years, which is better than the national average. Other Factors DEC 07 '95 08:21PM DOT/DEPUTY SECRETARY P.11/18 Total Appropriations Balance Funding to Date Required Source of Funds (Smillion) (Smillion) (Smillion) Federal: Section 5309 New Start $300.10 $12.50 $287.60 FHWA-Backed COP's 300 0 300 Local Financing 513.50 0.00 513.50 0,00 TOTAL $1,113.60 $12.50 $1,101.10 DEC 07 '95 08:21PM DOT/DEPUTY SECRETARY P.12/18 South Corridor Sacramento, CA (October, 1995) Description The Sacramento Regional Transit District (RT) is developing a multi- phased 11.3 mile light rail project on the Union Pacific right-of-way as its Locally Preferred Alternative (LPA) for the South Sacramento Corridor. RT has elected to phase the project to maximize the use of available state and local capital funds and to correspond with available operating funds. Phase 1, known as the Interim Operable Segment (IOS), consists of a 6.3 mile segment of the full LPA. The segment would operate between downtown Sacramento and Meadowview Road and has been forecast to carry 25,000 passengers per day in the year 2015. The estimated capital COSI of the IOS is approximately $200 million (1995 dollars). Status Section 3035 of ISTEA directed FTA to enter into a multiyear grant agreement with RT for $26 million to provide for the completion of alternatives analysis, preliminary engineering, and final design. Of that amount, $4 million was appropriated through fiscal year 1996 RT is currently funding preliminary engineering and FEIS with $3.8 million in local dollars. The Major Investment Study (Alternative Analysis)/Draft EIS was completed in September 1994. RT selected the LPA in January 1995. Phase 1 was defined in August 1995 and RT requested FTA approval to initiate PE on Phase 1. RT expects to complete preliminary engineering and a Final EIS in March 1966. Project Justification Mobility Improvements Population, employment and person trips in the Sacramento area are expected to increase significantly in the next twenty years, with the South corridor expected to grow at rates higher than the regional averages. This is projected to result in substantial deterioration in the levels of service on the two north-south freeways in the corridor: Interstate 5 and State Highway 99, Phase 1 of the project is forecast to. attract as many as 4,585 new daily riders to transit, and save 2,688 daily hours of transit travel time over the TSM alternative. DEC 07 '95 08:21PM DOT/DEPUTY SECRETARY P. 13/18 Cost Effectiveness The cost-effectiveness index for the LPA is $1 per new rider. The cost-effectiveness index for Phase 1 is approximately $6 per new rider. RT anticipates commencing PE for Phase 2 as soon as additional operating funds can be secured. Environmental Benefits Sacramento has recently changed from a "serious" to a "severe" nonattainment area for ozone and a "moderate" nonattainment area for carbon monoxide. The IOS would reduce automobile trips by 3,779 over the TSM alternative and improve the level of service on area roadways. Operating Efficiencies The IOS will improve the operating cost per passenger from $1.86 to $1.80 compared to the TSM alternative. Local Financial Commitment RT's strategy is to construct the LPA in two segments. The first of these is the 6.3 mile IOS from downtown Sacramento to Meadowview Road. RT has secured operating funds for this segment, and has also identified $100 million of capital funds from state and local sources. RT intends to request 50 percent funding from the Sec. 5309 new start program. DEC 07 '95 08:21PM DOT/DEPUTY SECRETARY P. 14/18 Southwest LRT Denver, Colorado (October 1995) Description The Regional Transportation District (RTD) in Denver is in the final stages of completing preliminary engineering (PE) for its 8.7-mile light rail transit (LRT) extension from the I-25 and Broadway interchange in Denver parallel to Santa Fe Drive to Mineral Avenue in Littleton. The double-track system will operate over an exclusive, grade-separated right-of-way and connect with the existing 5.3-mile Central Corridor light rail line, which was funded with totally local funds and opened in October 1994. The capital cost (1995 dollars) for the LRT project is $167.2 million, including right-of-way acquisition, a maintenance facility, Santa Fe improvements, preliminary engineering, final design, construction, and acquisition of rolling stock. RTD estimates that the SW LRT system will carry 8,400 passengers per day in the year 2000 (opening year) and 22,000 passengers per day in the year 2015. Status RTD recently completed the DEIS for the Southwest LRT project, with the FEIS scheduled for completion in December, 1995. The RTD board has recently authorized approximately $3 million in local and $900,000 in Section 9 funds to conduct final design (FD) of the project. The project is included in Denver's current Transportation Improvement Program and Transportation Plan. Congress has not authorized or appropriated any funds for this project. Justification Mobility Improvements. Compared to an estimated travel time in 2015 of 44 minutes between Littleton and downtown Denver DEC 07 '95 08:22PM DOT/DEPUTY SECRETARY P.15/18 for the NoBuild/TSM alternative, the travel time on LRT would be 25 minutes, a savings of 43%. Total travel time savings (hours per day) is 2,700 for year 2015. Cost Effectiveness. The cost per new trip is estimated at $7.67 Environmental Benefits. Denver is classified as a "transitional" nonattainment area for ozone and a "serious" nonattainment area for carbon monoxide. The SW LRT project is projected to have a modest positive impact on regional air quality by reducing total vehicle trips and vehicle miles of travel as compared with the no-build alternative. Operating Efficiencies. Systemwide operating and maintenance costs per transit rider for the SW LRT project are $0.70, for the TSM $1.40, and for the no-build $1.20. Local Financial The share of this project funded by Section 5309 is estimated Commitment to be 77 percent. RTD's primary sources of revenue are a sales and use tax and farebox receipts. The table below (shown in 1995 dollars) includes the local contributions for right-of-way, LRT maintenance facility, Santa Fe improvements, PE matching funds, and Final Design (FD) local funds. The Central Corridor was all locally funded. If that portion of the LRT system, to which this project connects, is included in the financial analysis, the federal share of the total costs would be 46 percent. Denver's capital financing plan is rated as "medium" at this point in project development. RTD is counting previous right-of-way purchases, Santa Fe improvements, and a portion of the existing LRT maintenance facility costs toward the local share of project costs. The remaining local contribution would come from RTD funds generated by the sales and use tax. All additional Federal funding would be requested from Section 5309. DEC 07 '95 08:22PM DOT/DEPUTY SECRETARY P.16/18 The stability and reliability of its operating plan are rated as "medium". It is anticipated that RTD will be able to operate a major investment and continue operating its existing system. In 1995 the average age of RTD's bus fleet was 7.5 years old, which is comparable to the national average of 8.3 years. Total Funding Source of Funds (Smillion) Federal: Section 5309 New Start -0- (appropriations thru FY 96) Section 5309 New Start $128.80 (remaining to be appro- priated) Section 5307 New Start $ 4.90 Local: RTD Sales and Use Tax $ 33.50 TOTAL $167.20 DEC 07 '95 08:22PM DOT/DEPUTY SECRETARY P.17/18 ST. LOUIS METROLINK ST. CLAIR IMPLEMENTATION SCHEDULE The St. Clair locally preferred alternative is a 24.8 mile extension of the MetroLink light rail system from its current terminus in downtown East St. Louis, Illinois through the City of Belleville to Scott Air Force Base and the Mid-America Airport. It will contain 13 stations and make extensive use of abandoned railroad right-of-way. The following is a summary of the anticipated time frame for development of the St. Louis St. Clair extension project. September, 1995 FTA permission to enter preliminary engineering, approval of $8 million grant for PE October, 1995 Bi-state secured project management consultant to manage the entire project January, 1996 Expect multiple contracts with engineering/design firms in place to do the preliminary engineering May, 1996 Complete preparation of supplemental draft environmental impact statement (SDEIS) August, 1996 Completion of final EIS. Concurrently, reach 30% on engineering plans and cost estimates to be used as financial basis for FFGA September, 1996 FTA approval of Record of Decision (ROD) September, 1996 Conclude FFGA negotiations with FTA Nov. 1996 - Aug. 1998 Final Design and procurement of construction contractor Aug. 1998 - Sept. 2020 Construction Oct 2000 - Mar. 2001 Start up testing May, 2001 Revenue service begins Total Cost: $363 million - $421 million (1992 dollars) Federal Share at 80% $290 - $337 million (new start funds) TGM-10 (Sahaj) 11/27/95 DEC 07 '95 08:23PM DOT/DEPUTY SECRETARY P.18/18 St. Clair County, Illinois Corridor St. Louis, Missouri Metropolitan Area Description The East West Gateway Coordinating Council (EWGCC) is considering transit alternatives for a 20-mile corridor between downtown East St. Louis, Illinois, and the vicinity of Scott Air Force Base. Fixed guideway alternatives being considered include both an extension of the MetroLink light rail project (which opened in July 1993) and construction of a busway which would terminate at the Metro Link station in East St. Louis. Various alignments of each of these alternatives have been studied. A preliminary cost estimate for the light rail alternative along the former CSXT railroad right-of-way is $431 million. The preliminary daily ridership estimate for LRT is 4,847 in the year 2010. Status A draft EIS was completed in 1995. During 1995, preliminary engineering (PE) was initiated on the project. The PE phase will include development of a Supplemental Draft and Final Environmental Impact Statement. The environmental work on the project is expected to be completed in the XXXXX, 1996 timeframe. Through FY 1995, Congress has appropriated $14.1 million for preliminary engineering, final design, and acquisition of light rail vehicles. Justification Mobility Improvements. EWGCC estimates total transit trips (bus and rail) in 2010 to be 134,703 for the No Build alternative and 138,588 for the CSXT LRT alternative. The CSXT LRT alternative is projected to save existing transit riders 824 hours of travel time per day in 2010. Cost Effectiveness. The cost effectiveness index for the project alternative is estimated at $36 per new rider, using a No Build option as the base case. Environmental Benefits. St. Louis, including St. Clair County, is a "moderate" nonattainment area for ozone and a "not classified" nonattainment area for carbon monoxide. Steve 1/11/96 Silverman CABINET AFFAIRS ROUTING SLIP DATE: FROM: SUBJECT: NY Times Acticle on FAA FOR YOUR INFORMATION FOR YOUR COMMENTS BY FOR YOUR ACTION BY Leon Panetta (Jen Palmieri) NYTIMES Article Friday Harold Ickes (John Sutton) George Stephanopoulos an FAA John Angell Barry Toiv Kitty Higgins Marcia Hale John Emerson Emily Bromberg Alexis Herman Lee Satterfield Dan Wexler Stephanie Streett-Anne Walley Doug Sosnik Karen Hancox Linda Moore Wendy Smith Eric Eve Mike McCurry Ginny Terzano Mary Ellen Glynn Tom O'Donnell Gene Sperling Michael Deich Jen O'Connor 111 1/2 Kathy Whalen Marvin Krislov Don Baer Michael Waldman Gabrielle Buschman Bob Litan T.J. Glauthier Larry Haas John Koskinen Lee Ann Inadomi Kris Balderston Anne McGuire JAN JAN 11 11 '96 06:51PM SAFTT DOT/SECRETARY OFFICE P.2/3 Commuter Turboprop Aircraft Testing - New York Times Article Matt Wald, the transportation beat reporter for the New York Times, is expected to publish an article tomorrow that Is an update of the turboprop icing review which FAA is conducting as a result of the ATR accident In Roselawn in October of 1994. According to the reporter, the article will be based on information which he received from Embraer, the Brazilian manufacturer of one of the aircraft included in the Icing tests. After the accident in Roselawn, the FAA initiated a series of actions to focus on the vulnerability of turboprop aircraft to icing. Extensive testing of the ATR as a first phase resulted in the redesign of a de-icing boot which is now required for all ATR aircraft operated in the United States, In a second phase, FAA established test criteria for the rest of the turboprop aircraft population. That population includes the Embraer, the Canadian DeHaviland, the Dutch Fokker, the Swedish Saab, and others for a total of approximately 20 aircraft types. FAA met with the manufacturers of these aircraft to review the test criteria, and obtain agreement on the conduct of Icing tests for the entire turboprop aircraft population. FAA had hoped to have concluded these tests by November of 1995, one year after the Roselawn accident, but complexity of the tests and schedules of the aircraft manufacturers have delayed the completion of all of the tests. However, 75 percent of the aircraft have had testing completed, and preliminary data have been obtained on the remainder. So far, the Embraer is the only aircraft which has had test results which the FAA considers cause for more specific in-flight icing tests. However, these preliminary results were not conclusive and additional tests are nearly completed. FAA expects the expanded tests to be completed within the next few weeks. In the meantime, FAA has no data which would cause concern about the safety of the Embraer aircraft. Embraer evidently contacted the New York Times because they believed that FAA was preparing to issue unique requirements for their aircraft to counter icing problems. In fact, FAA had prepared draft documents to be ready in the event that the additional tests showed a safety problem, but additional data obtained has obviated the need for them. JAIY JAN 11 '96 06:51PM DOT/SECRETARY OFFICE P.P.3/3 11 FAA has contacted the reporter with the New York Times, as well as other major papers, to clarify the facts surrounding this issue. FAA expects to issue guidelines in the next several days to pilots on how best to identify icing conditions and what to do should they find themselves in icing conditions. FAA will also host an international icing symposium in the Spring to discuss the latest research on aircraft icing, and what next steps are needed to advance the level of knowledge in this area. JAN 11 '96 05:05PM AVIATION INTL AFFAIR P.2/4 U.S. Department of Assistant Secretary 400 Sevenih SI. S W Transportation Washington, DC 20590 Office of the Secretary of Transportation January 11, 1996 MEMORANDUM TO: Steven J. Akey Assistant to the Secretary for Public Affairs FROM: Mark L. Gerchick Jos Acting Assistant Secretary for Aviation and International Affairs SUBJECT: Aviation Daily Article I thought you might be interested in the attached year-end Aviation Daily article which provides a fairly comprehensive overview of the Administration's significant accomplishments in international aviation over the past year. The piece might also provide a concise and informative background piece for national media and interested Hill officials, as well as those who follow international aviation matters at the White House. Attachment cc: Steve Palmer Michael Deich Bruce Lindsey Jennifer O'Connor JAN 11 '96 05PM AVIATION INTL AFFAIR P.3/4 Page 20 January 4, 1996 AVIATION DAILY U.S. Shifts Air Accord Efforts To Asia After Big Year In Europe by Edward McKenna The U.S. will be looking in 1996 to build on its 1995 to get sidetracked during the drawn-out and eventu- gains in Europe and improve its position in Asia after ally unsuccessful talks with the U.K. The so-called a year of considerable achievement. minideal struck last June, which produced a Chicago- By any measure, 1995 was a very productive year Heathrow service for United, sparked an industry feud for US. negotiators, tallying 20 new aviation accords, and political firestorm as various constituencies argued more than double the total of any of the last five years their rights to Heathrow slots. (see table on Page 21). Beginning the year with Canada Despite continued efforts in several rounds of talks, and ending with China the U.S. compiled an impressive the two sides failed to reach an agreement. At yearend, list of new pacts, including nine European open skies frustrated U.S. lawmakers still were protesting the failed agreements. Offsetting these successes, to some extent, talks. Sen John McCain (R-Ariz.) threatened to hold was the failure to gain a new agreement with the U.K. hearings and Sen. Kay Bailey Hutchison (R-Texas) and the still unsettled situation in Japan. put a hold on the nomination of Charles Hunnicutt Entering 1996, the U.S. has a less ambitious but to be assistant secretary for aviation and inter-national no less important agenda than in 1995. affairs - a position that probably will Although there is no European open skies remain unfilled during the term of the initiative, U.S. negotiators still begin the 1996 Clinton administration. year with two important goals in place - It now appears that attempts to agreements with Germany and Japan. Outlook gain a new deal with the British are all Also, there is likely to be a sea change in but dead. DOT Secretary Federico Peña U.S. strategy, focusing more on Asia than has agreed to continue staff-level talks Europe and on incremental rather than At an impasse with with the U.K., but "there is no partic- U.K., U.S. will press ular basis for any hope right now" for open skies deals. Looking to fulfill these goals, DOT a breakthrough, a US. official conceded, begins the year in a much stronger posi- for Germany deal adding, "We see no evidence at the tion because of last year's accomplishments moment that the British are going to "The number of [new] truly liberal bilaterals. has to alter afford us the flexibility that we need, especially with the environment in which other talks take place," said respect to Heathrow access." Jeffrey Shane, former assistant secretary for policy Instead, the U.S. has turned its attention to Germany. and international affairs in the Bush administration and The two countries had targeted 1997 for an open skies currently with Washington law firm Wilmer, Cutler & agreement, but that timetable apparently has been sped Pickering. up. "We're having very productive discussions now with The department sought last year to establish a Germany," said a DOT official. In fact, officials of the two foundation for future negotiations through its new countries are scheduled to continue unofficial talks international aviation policy, officially issued in April, this month aimed at clearing away potential European as well as the new agreements. "We hope we were able Union issues. to get a longer view of U.S. interests, not just this month, Many observers believe an open skies agreement next season or next year, but really moving into the next with Germany in combination with the other 10 Euro- century," said Mark Gerchick, DOT acting assistant pean open skies countries - the nine new ones, plus secretary for aviation and international affairs. Along The Netherlands - would put a great deal of pressure the same lines, the department worked "to strengthen the on the U.K. to open up its market. In this effort, DOT economic analysis that goes into international aviation has a key political ally in Sen. Larry Pressler (R-S.D.), decisionmaking,". he said, adding that "overall, we had chairman of the Senate Commerce Committee. Pressler some real successes in rationalizing the process and met with German Transport Minister Matthias Wiss- expanding [or] making [it] more rigorous." mann during 1995 and has boosted a new agreement Continuing its efforts to liberalize relations with repeatedly in speeches on the Senate floor. Europe, the U.S. will press this year for an open skies The U.S. may take other steps to liberalize further its agreement with Germany. "The nine-country initiative relations with Europe. In 1995, the U.S. hammered out an was always viewed as a stepping stone, not an end in agreement with Ukraine as well as a phased open skies itself," Gerchick said. However, the initiative seemed accord with the Czech Republic - the (Continued) COPYRIGHT 1990 THE COMPANIES. & JAN 11 '96 06PM AVIATION INTL AFFAIR P. 4/4 AVIATION DAILY January 4, 1996 Page 21 Air Agreements (Cont.) decide later whether and when to hold passenger talku It is these negotiations that pose the greatest chal- first such pact with a former Eastern Bloc country. It lenge this year. The U.S. and Japan managed to crafts offered a similar agreement to Poland and may be able an interim deal in 1995, like the US.-U.K. minideal, that to work it out this year. In addition, a DOT ruling on allowed Federal Express to operate beyond-Japan antitrust immunity for Delta and code-share partners service in exchange for additional rights for Japan's cargo Swissair, Sabena and Austrian is likely early this year. carriers. Still, the difficulties surrounding those talki Also expected during the year is an application for similar provoked angry reaction on Capitol Hill; as many immunity from United for its alliance with Lufthansa, lawmakers called for retaliatory actions against Japane especially if the U.S. and Germany agree on open skies. Reports from the current talks have notibeen positive Another antitrust immunity application submitted thus far. As they prepare to reconvene the negotiations in 1995 came from American, for its alliance with this month in Tokyo, the two sides remain far apart, Canadian Airlines International. Although the request may not be acted on until 1997, when the U.S.-Canada Bilateral Air Agreements Signed In 1995 market becomes completely open, it underscores the Month Entity Remarks changes in the aviation relationship between the two February Canada Phased Open Skies countries. Signed in February, the U.S.-Canada bilateral April Ukraine - has spurred a 40% increase in scheduled jet aircraft May Switzerland Open Skies frequencies and a 15% increase in passenger traffic May Sweden Open Skies May Peru - Those totals will grow again early this year when carriers May Norway Open Skies designated for new Montreal, Vancouver and Toronto May Luxembourg Open Skies service begin operations. May Iceland Open Skies South of the border, the U.S. achieved only limited May Finland Open Skies success in improving its relationship with Latin American May Denmark Open Skies countries. It signed new agreements with Brazil and May Belgium Open Skies May Austria Open Skies Peru, expanding frequency opportunities for US. carriers. June U.K. Minideal The market remains largely dominated by United and June Brazil — American, and no apparent plans are in the wings to September Hong Kong - change that situation. October Philippines 1 In contrast, DOT is determined to alter the rapport October Macau - December India - between the U.S. and Asian countries. At the end of December Czech Republic Phased Open Skies 1995, the focus of U.S. policy clearly had shifted to Asia. December China - In the final four months of the year, the U.S. reached new agreements with Hong Kong, the Philippines, according to a senior U.S. official. In November, the US. Macau, India and China and began talks with Thailand proposed open skies phased over five years, allowing In addition, Peña and his staff made a 17-day trip to for new entry, beyond rights and new third-and fourth- eight Asian countries in November. The trip "highlighted freedom service in the interim Japan's plan was more a series of liberalizing developments," said Gerchick, restrictive, minimizing new entry and seeking full rights who stressed the importance of the deal with Hong Kong for its two all-cargo carriers, Nippon Cargo Airlines and which will revert to Chinese rule in 1997. "I would [also] Japan Airlines. characterize the very substantial progress with Thailand Even if the two sides manage to broach their as very important symbolically. because of their previous differences by the March deadline, many difficulties will renunciation status," he said. The U.S. and Thailand remain when they turn to passenger issues. DOT faces are expected to announce the terms of a new pact this a deeply divided industry as carriers with bilateral rights month when they meet in Bangkok. in Japan, such as United, fight for fifth-freedom service A far cry from the open skies initiative in Europe, in the region, while others, such as American and Delta, the Asian accords represent progressive change, the seek additional direct service to Japan. DOT is "not kind of incremental gains the U.S. seeks in Japan. In prepared to buy into" any offer from Japan that proposes talks with Japan, the U.S. is looking to get some service "a trade between thirds and fourths, on the one hand, increases without limiting its additional rights beyond and fifths, on the other," said Gerchick, who maintains Japan. The two sides are engaged now in all-cargo that the department does not view the issue as an negotiations, working on a March deadline, and will either/or situation. COPYRIGHT 1005 THE COMPANIDE, NE NOV 17 '95 06:02PM AVIATION INTL AFFAIR P.1/5 DOT FAA persetam U.S. DEPARTMENT OF TRANSPORTATION 400 Seventh Street OFFICE OF THE SECRETARY Washington, DC 205 OFFICE OF THE ASSISTANT SECRETARY FOR TRANSPORTATION POLICY Number of Pages including this Page: 5 Date: 11/9/95 11/17/95 TO: J. O'CONNOR Fax. Tele. 456-7929 456-1121 456-6350 FROM: JOHN LIEBER DEPTUY Assistant Secretary for Transportation Policy (202) 366-4450 FAX: (202) 366-7127 FAX MESSAGE: NOV 17 '95 06:02PM AVIATION INTL AFFAIR P.2/5 November 8, 1995 TO: Jennifer 0' Connor FROM: Janno Lieber Junno RE: Labor Concerns about FAA Personnel Reform You asked how we are responding to labor's concern that the personnel reforms provided for in DOT's appropriations bill would effectively decertify the unions or otherwise change their status vis-a-vis the FAA. The Administration worked closely with the unions in developing its corporation proposal (which, incidentally, had been suggested by NATCA during the campaign). Throughout our push for reform, NATCA has consistently cited the need to improve conditions for union employees as a major rationale for change. The decertification concern was never raised - - either by labor or by anyone else looking at the bill - - until the end of the appropriations conference. In response, the conference committee - - with our support -- included report language clarifying that the intent was to maintain the FAA-union relationship. See attached pages from the October 20, 1995 Congressional Record. In addition, Secretary Pena has written to the unions reassuring them that no changes will be made in that relationship. A copy of that correspondence is attached. Of course, we should provide whatever additional assurances are needed. The unions want to build back in the legislative guarantee of recognition of the union, primarily to protect against possible attempts for future Administrations to dismantle the unions. The McCain bill -- which, as you know, the Administration is supporting and which unanimously cleared the Senate Commerce committee earlier today - - does this. Also attached is the draft response to all the PATCO letters. Please let me know if you need other information or materials. attachments NOV 17 '95 06:02PM AVIATION INTL AFFAIR 10514 CONGRESSIONAL RECORD- HOUSE October 20, 1995 section 1003 of the Intermodal Surface Trans- velopment and implementation of the new Amendment No. 188; Retains language pro- portation Efficiency Act, The House bill con- acquisition system to the FAA adminis- posed Dy the Senate expressing the MDM of tained no similar provision. trator. not the Secretary. The provision the Senate regarding a dispute between the Amendment No. 172: Deletes Senate Drovi- takes effect on April 1. 1996. R-7 proposed Dy United States and Japan over Implements- sion that would have allowed states to trade the Senate. uon of the current U.S./Japan bilateral avia- in unobligated balances of funds authorized Amendment No. 176: Reduces bonuses and tion agreement. The House 61/1 contained DO or appropriated for highway demonstration cash awards for Department of Transpor- similar provision. projects to mitigate reductions pursuant to cation employees by 5752.852 as proposed by Amendment No. 187; Includes Senate Jan- section 1003 of the Intermodal Surface Trans- the Schate. The House bill included no simi- guage which modifies provisions of section portation Efficiency Act. The House bill con- lar provision. 339 of the Department of Transportation and tained no similar provision. Amendment No. 177: Limits funds for Do. Related Agencies Appropriations Act, 1983 Amendment No. 173: Deletes Sonate provi- partment of Transportation advisory com- (Public Law 102-388). The House 0111 included sion that would have established interstate mittees to $850,000 as proposed by the Sen- no similar provision. compact Infrastructure banks. The House ate. The House bill contained no similar pro- Amendment No. 188: Deletes Senate provi- 0111 contained no similar provision. vision. sion that repeals section 404 of 23 U.S.C. and Amendment No. 174:- Retains. with amend- Amendment No. 178: Includes provision inserts language that waives the freight ton- ment. language in the Senate bill requiring that enables the Secretary of Transportation nage limit for rail lines benefiting from the development of B new personnel management to enforce and continue in effect the exemp Local Rail Freight Assistance (LRFA) pro- system for the Federal Aviation Administra- tion provisions of the Motor Vehicle Infor- gram for 8 project near Wahpeton. North Da- tion. The House bill contained no similar mation and Cost Savings Act. The House bill kota. The funds are proceeds from LRFA provisions. The conference agreement in- contains no similar provision. loans that have been repaid to the State. Ap- cludes the following changes to the Senate Amendment No. 179: Provides that the proximately $2,300,000 may be used for the bill: (a) the official responsible for develop FAA Technical Center in Pomona. New Jer- partial cost of a privately owned rail spur. ment and implementation of the new person- sey be designated as the "William J. Hughes siding. and loading facility. nel system is the FAA administrator. not Technical Center", as proposed by the Sen- Amendment No. 189: Includes Senate lan- the Secretary: and (b) the new system shall ate. The House bill contained no similar pro- guage that would have delayed the restric- not walve current law relating to veterans' vision. tion on the availability of certain highway preference and unemployment compensation. Amendment No. 180: Provides that no funds funds and designated the National Highway The provision takes effect on April 1. 1996. as may be used to close Coast Guard small boat System. The House bill contained no similar proposed by the Senate. stations or subunits, and allows flexibility provision. Management-labor relationship-The con- for the Secretary LO implement system-wide (erees believe that a harmonious manage- management efficiencies. as proposed by the TITLE IV ment-labor relationship within the FAA 19 Senate. The House bill contained no similar Amendment No. 190: Restores House lan- important to the effectiveness and efficiency provision. The conferees support Coast guage deleted by the Senate which provides of the national airspace system. The con- Guard downsizing and streamlining efforts in for mandatory standards and procedures gov- ferees do not intend that the personnel man- general. but find that in this Instance the erning arbitrators and arbitration of labor agement reforms included in this bill force Coast Guard's methodology failed to fairly disputes in the Washington. DC area. the disestablishment of any existing man- consider distinctions between small boat sta- TITLE V agement-labor agreement or lead to the dis- tions. such as water temperature and sur- Amendment No. 191: Deletes title V of the solution of any union currently representing vival time. leading ultimately to B proposal House bill which restricts the use of funds FAA employees. Instead. the conference which lacked critical justification. Amendment No. 181: Deletes Senate lan- for improvements to the Miller Highway in agreement provides the administrator of the New York City. New York. This prohibition FAA flexibility to redefine the management guage that would redistribute funds made 18 included under amendment numbered 167. labor relationship to the benefit of the agen- available for obligation authorized by item cy and all of its employees. 21 of the table in section 1105(f) of Public CONFERENCE TOTAL-WITH COMPARISONS Administrator's working group.-The con. Law 102-240 to carry out additional surface The total new budget (obligational) au- ferees have included bill language which re- transportation projects in Louisiana. The thority for the fiscal year 1998 recommended quires the FAA to develop new personnel and House bill contained no similar provision. by the Committee of Conference. with com- procurement reform plans, with the goal of Amendment No, 182: Includes Senate lan- parisons to the fiscal year 1995 amount. the accelerating the modernization of the FAA guage that provides for the transfer of cer- 1996 budget estimates, and the House and in the most efficient and cost-effective man- tain federal property in Hoboken. New Jer- Senate bills for 1996 follow: ner. The conferees believe the success of this sey. The House bill contained no similar pro- New Dudget (obligational) plan will, in Dart, depend upon the assistance vision. authority. flscal year of the entire aviation community. The con- Amendment No. 183: Deletes Senate lan- 1995 $14,214,401.000 forees would like to mee high level input from guage which requires a five percent reduc- tion from Oscal year 1995 levels in the energy Budget estimates of new the aviation community. The conferees costs of federal facilities used by agencies (obligational) authority. therefore strongly recommend that the ad- fiscal year 1996 35,468,964,831 ministrator consult with the widest array of funded in this Act. The conferees are aware House bill. Oscal year 1986 12,810,725.806 interested parties in developing the new per- that this issue will be addressed government wide by the Treasury, Postal Service and Senate bill, fiscal year 1996 12,613,811,567 sonnel and procurement systems. The admin- General Government Appropriations Act. Conference agreement, fis- istrator should consider establishing a work- 1998, cal year 1996 12,680,532.831 ing STOUD to assist his efforts. The working Amendment No. 184: Deletes language pro- Conference agreement group could include. DUE not be limited to, representatives from the air carriers, general posed by the Senate requiring the Secretary compared with: and business aviation, airports. aircraft of Transportation to conduct a study of com- New budget manufacturers, airline and FAA employees. petition and air fares in rural aviation mar- (obligational) author- and the Office of the Secretary of Defense. kets in the United States. ity. fiscal year 1995 -1.533.868,169 Amendment No. 175: Retains. with amend- Amendment No. 185: Includes Senate lan- Budget estimates of new ment. language In the Senate bill requiring guage that would provide $1,000,000 to estad (obligational) author- development of & new acquisition manage- lish and operate the Railroad Safety Insti- ity, fiscal year 1996 22.788.432,000 ment system for the Federal Aviation Ad- tute. The House bill contained no similar House bill, fiscal year ministration. The House bill contained no provision. The conference agreement also,ad- 1996 130.192.975 similar provisions. The conference agree- dresses this lesue under amendment num- Senate bill. fiscal year ment changes the official responsibile for de- bered 6. 1996 +68,721,264 NOV 17 '95 06:03PM AVIATION INTL AFFAIR KAP.45 of THE SECRETARY OF TRANSPORTATION WASHINGTON, D.C. 20590 UNITED STATES o AMERICA October 20, 1995 Mr. Barry Krasner President, National Air Traffic Controllers Association 1150 - 17th Street, NW, Suite 701 Washington, DC 20036 Dear Barry: As you know, the Clinton Administration and the Congress are currently pursuing several avenues to achieve Federal Aviation Administration (FAA) reform. Several of the legislative initiatives grant the FAA authority to establish a new personnel system in some areas, while preserving coverage by Title V of the U.S. Code in other areas. The Clinton Administration has voiced strong support for the FAA reform proposal introduced by Senators McCain, Ford and Hollings. One very important aspect of their bill is its preservation of the statutory framework for labor-management relations, Chapter 71 of Title V, within FAA. We believe that the preservation of this framework is a necessary component of any reform legislation. Also, we supported and worked to preserve Premium Pay for Controllers, and the Conference Committee agreed to retain Premium Pay. It indeed is unfortunate that you did not raise the DOT FY 96 appropriations bill language with me until Wednesday, October 18, the day the conferees considered this issue. I immediately went to work on this issue but, despite our efforts, we were unable to convince the conferees to clarify the Chapter 71 issue. The conferees included in the Statement of Managers language that makes it clear that no labor organizations are to be disenfranchised by the personnel reform provisions. We strongly support this language. You can be assured that we will continue to recognize and support the existing labor-management statutory framework. Sincerely, Jedisico Pun Federico Peña