Energy & Transportation Update
An Information Service of the AFI Energy and Transportation Committee
May 1, 2000
Transportation
Rep. Bray Testifies on the 4.3-Cent Federal Gas Tax Repeal Proposal
Missouri Representative Joan Bray testified on behalf of NCSL on March 21, 2000 before the House Subcommittee on Ground Transportation. NCSL argued that the repeal of the 4.3-cent gas tax would undo all the progress made through TEA-21 for returning gas tax dollars to the states for highway spending. It was estimated that the states would have lost $7.2 billion of federal funds for highways, mass transit and public safety. Some members of Congress were doubtful the repeal would even reduce the price of gas at the pump. Several weeks following the House's initial proposal, numerous bills were introduced to repeal the 4.3 cents or suspend the 18.4 cents federal gas tax. The Senate twice defeated S. 2285 proposed by Senate Majority Leader Trent Lott and it is unlikely to be considered again this year. The testimony is available on NCSL's web site at http://www.ncsl.org/statefed/gastax.htm.
Congress Passes Budget
Last week Congress passed a non-binding budget resolution for the fiscal year 2001 set budget authority for transportation programs at 59.3 billion up nearly 5 billion from this year. Transportation Committee Chairman Bud Shuster, endorses the plan saying that it would allow for funding increases called for in TEA21, AIR21 and the FAA budget. However, the House Appropriations Committee may propose a bill with smaller funding increase, which would affect only the FAA spending.
Electric Industry Restructuring
NCSL Comments on Electric Restructuring Bill
On March 15, 2000 NCSL wrote a letter commenting on H.R. 2944, "The Electricity Competition and Reliability Act." NCSL, responding to a request for comments, submitted a letter to the House Commerce Committee Chairman Tom Bliley. NCSL's comments may be found at http://www.ncsl.org/statefed/elecviews.htm
Senator Below Testifies on Electric Industry Restructuring
On April 13, 2000 NCSL testified before the Senate Committee on Energy and Natural Resources on a series of electric industry restructuring bills. New Hampshire Senator Clifton Below, who was the principal author of New Hampshire's electric industry restructuring legislation, represented NCSL before the committee. In the testimony, NCSL called for the federal government to postpone acting nationally until states and their electric industries have had the opportunity to adapt to state restructuring implementation and to provide states that have not restructured with the time to determine if restructuring is a viable option for them.
The letter and testimony from NCSL stressed the following:
Federal regulation should not preempt state authority
States have authority over intrastate, retail sales and delivery of electricity. Federal preemption of this authority will be strongly opposed.
Federal regulation should "grandfather" any actions taken by states to restructure their electric industry without setting temporary limits on such grandfathering actions
NCSL strongly supports the grandfathering of all state actions regarding restructuring without limitation.
Federal regulation should not set a "date certain" for national implementation of electric restructuring
By setting a "date certain" at which electric restructuring would be implemented nationally, Congress would be preempting states' authority over intrastate retail sale and delivery of electricity. Requiring national participation by a determined date could be devastating to states and their electric markets if they are ill suited for electric industry restructuring.
The full text of NCSL testimony can be found http://www.ncsl.org/statefed/ertestimony.htm.
Questions should be directed to Eileen Doherty, Committee Director, (202) 624-8687.
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