WASHINGTON, D.C. -- United States Senator Daniel K. Inouye is pleased to announce that Hawaii will receive an average of $135.5 million each year, an increase of 7% from previous years. These funds are included in the House-Senate Conference Report, which was approved by the Senate today, on the Intermodal Surface Transportation Efficiency Act of 1998 (ISTEA II), providing authorization for highway and transit programs for six years.

At Senator Inouye's request, ISTEA II contains a provision to provide $18 million a year nationally to promote the use of marine ferry and high-speed marine ferry services, and to allow state-run ferry programs to apply for federal grants for the construction of ferries, and or related ferry infrastructure. Under this amendment, the State of Hawaii may apply for grants to help start new ferry operations.

"The marine ferry system of the United States provides an invaluable component to the transportation requirements of our nation. Because Hawaii is an island state, I believe the viability of passenger/vehicle ferry services should be fully pursued. Marine ferries are less costly as compared to highways, bridges, and tunnels. In coastal urban centers, marine ferry service can provide cost-effective, environmentally friendly transportation to areas suffering from congestion," stated Senator Inouye.

"The problem of severe traffic congestion is a critical issue. The State is exploring mobility alternatives for Honolulu's primary urban corridor from Ewa to downtown Honolulu. I believe that high-speed marine ferry services can be a cost-effective alternative to help alleviate much of urban Oahu's traffic problems," continued Inouye.

Senator Inouye was also instrumental in securing expanded use of $23 million in Amtrak funds that were designated for the State of Hawaii. This provision allows Hawaii to use its funds for intrastate passenger ferryboat service, harbor improvements, highway construction, upgrading and maintaining of intercity primary and rural air service facilities, in addition to bus and transit service.

Under the Taxpayer Relief Act of 1997, Amtrak must provide 1 percent, or $11,615,000, to each "non-Amtrak state." Section 977(e)(2) of the Act defines a "non-Amtrak state," with respect to payment, as any state which does not receive intercity passenger rail service from Amtrak. The other "non-Amtrak states" include Alaska, South Dakota, Wyoming, Oklahoma, and Maine.

During deliberation of the bill last year, the Senate provided $2.3 billion in capital spending for Amtrak, the federally subsidized passenger rail service. The House had no such provision. During the House-Senate conference, however, the conferees agreed to a "new operating loss carryback" method to save Amtrak, and pay for its capital needs. Senators from states not served by Amtrak succeeded in including a provision that carved out 1 percent of these funds for each of their states.

The bill will now be transmitted to the White House for President Clinton's signature.