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Environment and Natural Resources Committee
Environment Update
Volume V, Number 1
February 10, 2004
Previous Issues
LEAN AIR ISSUES ON DUAL TRACK
Although Congress is not scheduled to adjourn until early October 2004, there are only some 60 floor session days left. Extra district work periods, primaries, political party conventions and traditional holiday recesses have shrunk this year’s schedule. With this reality, it appears that Clear Skies and multi-pollutant legislation (such as S.1844 and H.R. 999) introduced in both the House and Senate will stall. Acknowledging this situation, the administration is pursuing a regulatory route to reduce emissions of mercury, nitrogen oxides and sulfur dioxide. On January 30, the Environmental Protection Agency issued the Utility Mercury Reductions Rule (69 Fed. Reg. 4,652) and the Interstate Air Quality Rule (69 Fed. Reg.4,566). Both seek to reduce emissions by 70 percent over the next 14 years. Both use cap and trade approaches. Both have provoked strong support and opposition. Both give states and the public 60 days to comment. On February 25 and 26, 2004, the U.S. Environmental Protection Agency (EPA) will hold three hearings simultaneously in Chicago, Philadelphia and Triangle Park, North Carolina to take public comments. For further information on the hearings go to http://www.epa.gov/air/interstateairquality/pubhear.html.
Rumors abound over fate of Energy Bill
Discussions have been ongoing in Congress & the Administration over the eventual fate of the Energy Bill (H.R. 6) since supporters of the bill failed to achieve cloture in the Senate last November. Since Congress returned in mid-January it has been unclear whether the votes needed for cloture were possible. This resulted in numerous rumors regarding passage of portions of the bill, such as the ethanol language or the electric reliability section, as stand alone measures or as amendments to other vehicles such as pending TEA-21 reauthorization legislation (S. 1072). Following a Republican retreat in Philadelphia Sen. Pete Domenici (R-NM), chairman of the Energy Committee and floor manager of the energy bill, announced his intention to trim the cost of the bill while maintaining the overall integrity of the legislation. In addition, Sen. Domenici intends to remove the controversial MTBE safe-harbor language from the leaner energy bill. It was this language along with the overall cost of the bill that initially stalled finale passage. Support further eroded as the President's budget was released and new deficit numbers were digested. It is still unclear as to whether the newly trimmed energy bill will brought up as a stand alone bill or be attached to legislation already on the calendar for floor consideration this month. Further complications may ensue if the trimmed down legislation does in fact remove the safe-harbor language for MTBE producers. House Majority Leader Tom DeLay (R-TX) has insisted on the inclusion of the MTBE language. He has indicated the House may not be receptive to a new Senate compromise having already passed the Energy Bill that came out of Conference last November.
FY 2005 Budget Released
On February 2, 2004 the President submitted his proposed budget for FY 2005 to Congress. The total budget request for the U.S. Environmental Protection Agency (EPA) came in at $7.76 billion dollars. The FY '05 budget request is a $605 million dollar cut in comparison to the FY '04 enacted appropriations for EPA. Included in the FY '05 budget request is $850 million dollars each for the Clean Water State Revolving Loan Fund (CWSRF) and the Drinking Water State Revolving Loan Fund (DWSRF). For FY '04 the CWSRF was funded at $1.3 billion: the DWSRF at $850 million. The reduction to the CWSRF ranks among the most severe of state-federal formula grant program cuts suggested by the administration. Similar cuts were proposed for FY '03 and FY '04 but rejected by Congress. The total budget request for categorical state grants is $1.25 billion including $23 million for a new State and Tribal Performance Fund highlighted during Administrator Leavitt's role out of the Agency's budget. This fund would award performance based competitive grants to projects that can demonstrate environmental and public health outcomes.
NCSL Standing Committee on Environment and Natural Resources
2003-2004 Officers
Chair:
Rep. Jack Barraclough, Idaho
Vice-Chairs:
Sen. Randy Christmann, North Dakota
Sen. Harris McDowell, III, Delaware
Rep. Sam Ledbetter, Arkansas
Staff Chair:
Judith Horowitz, New Jersey Office of Legislative Services
Staff Vice-Chair:
Al Boright, Vermont Legislative Counsel
Washington Staff:
Michael Bird
Senior Federal Affairs Counsel
202-624-8690
michael.bird@ncsl.org
Tamra Spielvogel
Reaserch Analyst II
202-624-8690
tamra.spielvogel@ncsl.org
Denver Staff:
Larry Morandi
Program Director
303-364-7700
larry.morandi@ncsl.org
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