September 30, 2003

The Honorable W.J. "Billy" Tauzin

Chairman, Committee on Energy and Commerce

U.S. House of Representatives

Washington, DC 20515

Dear Mr. Chairman:

The Administration believes that Enhanced 911 (E-911), and especially
wireless E-911, is critically important to the security and safety of
the American people. The Departments of Commerce and Transportation
commend the work of the Energy and Commerce Committee and the similar
efforts of those in the United States Senate to expand E-911 coverage
nationwide.

The Administration believes that H.R. 2898 could be improved by (1)
establishing a joint program office to enhance the coordination of E-911
implementation efforts among Federal, State and local entities, and (2)
addressing the problem of E-911 implementation within existing funding
rather than creating a new grant program, which the Administration
believes would be duplicative of current efforts.

[Coordination of E-911 Implementation]{.underline}

The Administration suggests that the Committee amend H.R. 2898 to create
an E-911 Joint Program Office to be administered by both the Assistant
Secretary of Commerce for Communications and Information, and the
Administrator of the National Highway Traffic Safety Administration
(NHTSA). The Joint Program Office would be located in NHTSA and would
coordinate with those Federal agencies responsible for E-911
implementation tasks and services including the Department of Homeland
Security, the Department of Justice, and the Federal Communications
Commission. The Joint Program Office would build on existing efforts
within NHTSA and be responsible for coordinating Federal E-911 policies
and strategies, and facilitating broader implementation among the
States. The authorization for the Joint Program Office would sunset in
three years and at that time the Joint Program Office would identify the
appropriate agency to house the ongoing E-911 effort.

[Costs of E-911 Implementation]{.underline}

The Administration recognizes that there are significant costs
associated with implementing

E-911, including the particular costs associated with wireless E-911,
which must be dealt with by the State and local governments that operate
the Nation's Public Safety Answering Points (PSAPs). While the
Administration supports the Committee's goal of addressing the costs of

E-911 implementation, the Administration believes Congress should
consider more efficient and more cost-effective means to address this
issue, rather than establishing a new grant program as outlined in H.R.
2898.

There is a range of Federal and private grant programs capable of
providing support for E-911 implementation. (See the enclosed Appendix
for examples of these programs.) The proposed E-911 Joint Program Office
could leverage existing programs to address the costs of E-911, without
the need to create a new grant program at this time. The Administration
also believes that improved Federal leadership and coordination, within
existing resources, could significantly improve the implementation of
these essential wireless E-911 services.

A number of State and local governments have implemented successful
E-911 programs with little or no Federal assistance, and further study
is warranted to determine if their experiences could form the basis for
Federal efforts. At the same time, however, other States have yet to
fully implement their E-911 programs and some areas of the country have
no E-911 programs at all. In a disturbing trend, many States collect
consumer fees and taxes for the express purpose of funding E-911
programs, yet divert those funds to other uses unrelated to E-911.

The Administration shares the Committee's concern regarding States'
diversion of funds originally collected from taxpayers for E-911
implementation. However, we believe the issue is better addressed by
perhaps making existing grant funds that are made available for the
express purpose of E-911 contingent upon states and localities not
diverting E-911 funds collected at the State or local level.

The bill requires the Assistant Secretary of Commerce for Communications
and Information to prepare a report identifying, among other things, the
amount of funds diverted from E-911 services by States or other taxing
authorities. As currently written, however, the bill does not provide
the Assistant Secretary with a mechanism with which to obtain this
information from States or other taxing authorities. The Administration
would appreciate the opportunity to examine this issue more closely with
the Committee to ensure that the bill's fee diversion restrictions
achieve their intended results.

The Administration looks forward to working with Congress to make E-911,
and especially wireless E-911, a reality for all Americans. The Office
of Management and Budget advises that it has no objection, from the
standpoint of the Administration's program, to the submission of this
letter for the consideration of the Committee.

Sincerely,

Theodore W. Kassinger Rosalind A. Knapp

General Counsel Deputy General Counsel

U.S. Department of Commerce U.S. Department of Transportation

Enclosure

Identical letter sent to:

The Honorable John D. Dingell

Ranking Minority Member

With cc's to:

The Honorable Fred Upton

The Honorable Edward J. Markey

The Honorable John Shimkus

The Honorable Anna G. Eshoo