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Environment Update
An Information Service of the NCSL Standing Committee on
Environment and Natural Resources
Volume VI, Number 4
April 11, 2005
Previous Issues
PREEMPTION LOOMS IN ENERGY BILL AS HOUSE BEGINS MARK UP
The House Committee on Energy and Commerce began consideration of the Energy Policy Act of 2005 during a full committee mark up on April 6, 2005. The draft legislation, which has not been numbered yet, contains a number of provisions that would pre-empt state authority. Among these provisions are the pre-emption of state authority to site electric transmission facilities (SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES in the Electricity Title) and the preemption of state authority in the siting of liquefied natural gas (LNG) terminals (SEC. 320. LIQUEFACTION OR GASIFICATION NATURAL GAS TERMINALS in the Oil and Gas Title). In addition, the legislation includes the full text of the Refinery Revitalization Act considered in the House last year. This act would place control over the procedures for obtaining State and Federal environmental permits for refineries in the hands of the Secretary of Energy. In addition the Secretary would control the timelines for reviewing and granting permit applications and could override a decision of EPA or State officials denying a permit. NCSL sent a letter to Congress on June 14, 2004 in opposition to the Refinery Revitalization Act and its preemption of state authority when the Act was first considered on the floor of the House without any hearings or committee action.
NCSL will continue to follow the legislation as it proceeds through consideration in the House and will provide a more complete update on the bill once the Energy and Commerce Committee has completed its mark up. The committee is next scheduled to continue the mark up on April 12th at which point we expect the debate to turn to these items of concern. NCSL expects Representative Rick Boucher (D-VA) to offer an amendment to strike section 1221, which includes the preemptive transmission language. This is the only amendment we are aware of to address any of provisions preempting state authority. NCSL sent a letter of support for this amendment, signed by Rep. Carole Rubley (PA), chair of the NCSL Standing Committee on Energy and Electric Utilities, on Monday, April 5th which is attached to this email. State legislators should contact their U.S. representatives and urge them to support this expected amendment and to preserve state authority over electric transmission siting decisions.
CONGRESS CREATES TASK FORCE ON IMPROVING NATIONAL ENVIRONMENTAL POLICY ACT
On April 6th Rep. Richard Pombo (R-CA), Chairman of the House Resources Committee, announced the creation of a Task Force on Improving the National Environmental Policy Act (NEPA). The Task Force will be chaired by Rep. Cathy McMorris (R-WA) and will be charged with the task of analyzing the implementation of NEPA through hearings held through the country. It is being formed under the committee’s jurisdiction to conduct oversight operations on the nation's environmental laws. For more information on the Task Force visit there website at http://resourcescommittee.house.gov/nepataskforce.htm.
EPA SIGNS LONG ANTICIPATED CLEAN AIR RULES INTO AFFECT
Meeting the deadline set by judicial action the Acting Administrator Steve Johnson of the EPA signed the Clean Air Mercury Rule on March 15, 2005. The goal of the rule is to reduce mercury emissions from coal-fired power plants across the nation. The finalization of the Mercury Rule followed five days after the EPA promulgated the Clean Air Interstate Rule (CAIR). The CAIR rule is targeted to deal with the interstate transfer issue impacting downwind states by permanently capping emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) in the eastern United States and thereby controlling emissions at their source. For more information about the Mercury Rule go to: http://www.epa.gov/mercuryrule/. For more information about the CAIR Rule go to: http://www.epa.gov/interstateairquality/.
YUCCA MOUNTAIN DEBATE TAKES NEW TURN AS ALLEGATIONS ARISE CONCERNING DATA TAMPERING
The long standing political, legislative, and legal debate over the potential permanent high-level radioactive waste storage facility at Yucca Mountain, Nevada hit its latest snag last month as allocations came to light regarding data falsified by federal employees studying the movement of groundwater at the proposed site. On March 16th the U.S. Department of Energy (DOE) acknowledged that a U.S. Geological Survey employee studying water infiltration at Yucca Mountain apparently falsified documents required to verify the accuracy and credibility of research involving computer modeling of water infiltration and climate. This is just the latest stumbling block for DOE as it attempts to complete submission of its license application for the project to the Nuclear Regulatory Commission by the end of the year. If action is needed to redo the analysis or review DOE’s quality assurance program, two proposals put forth in light of the recent allegations, the license application may be further delayed. All of this is developing alongside legal and legislative debates over related issues such as the federal budget for the program, below levels necessary to keep the program on target for a 2010 opening, and whether the focus should be shifted to permanent on-site storage at the nation’s nuclear facilities. Senate Minority Leader Harry Reid (D-NV) and Sen. John Ensign(R-NV) are working on legislation to allow such an alternative.
BUDGET RESOLUTION BOOSTS WATER FUNDS
The Senate’s FY2006 budget resolution, S.Con.Res. 18 contains language urging the appropriations of $1.34 billion for the Clean Water State Revolving Fund. This contrasts with the President’s recommendation of $730 million, a 33% cut from FY2005 levels. The House Budget Resolution, H.Con.Res. 95 is silent on the issue. Senator Lincoln Chafee, R-Rhode Island) successfully added the SRF “sense of the Senate” language during committee markup. The $1.34 billion suggested SRF funding level equates with the FY2004 funding level that NCSL supports for FY2006. Bear in mind the budget resolution is advisory only since Appropriations subcommittees make all final decisions on annual spending levels. And, with subcommittees jurisdictions having shifted for the coming year, environmental programs will now be funded through the Interior subcommittee rather than the now-defunct Veterans, Housing and Independent Agencies subcommittee.
REPORT AGAIN CONCLUDES ENVIRONMENTAL BENEFITS EXCEED COSTS
A draft March, 2005 Office of Management and Budget (OMB) report concludes that benefits of federal and state-federal environmental programs have outweighed costs by no less than 2:1 and as high as 10:1 over the past decade. The draft report also concludes that new federal environment rules instituted last year enjoy a 3:1 minimum benefit to cost ratio. This annual OMB report is required under the NCSL-supported Regulatory Right to Know Act and analyzes cost-benefits for all major rules (costing over $100 million per annum) across most federal agencies. The report points out that “a substantial portion of both benefits and costs is attributable to a handful of EPA clean air rules that reduce public exposure to fine particulate matter.” The benefit to cost ratio for environmental regulations continues to be significantly greater than for an other subject matter area. Details of the report are found at http://www.whitehouse.gov/omb/inforeg/regpol-reports_congress.html.
PRESIDENT SIGNS STORAGE TANK PROGRAM TAX EXTENSION
Both Congress and President Bush acted swiftly this year to keep the Leaking Underground Storage Tank (LUST) program financed. On March, President Bush signed H.R. 1270, legislation that extends the 0.1 cent per gallon tax on the sale of gasoline, diesel and other motor fuels through September 30, 2005. The tax was scheduled to sunset March 31, 2005. This short-term extension opens the door for continued discussions and possible action on LUST reforms. Over the past two decades, the program has shut down nearly 1.6 million tanks. Approximately 100,000 sites still require remedial action.
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