Energy & Transportation Update
An Information Service of the AFI Energy and Transportation Committee
February 12, 2001
Volume II, Number 2
Amtrak Pushes for Federal Bond Bill
On February 6, 2001 Sen. Kay Bailey Hutchison (R-Texas) and Sen. Joe Biden (D-Del.) introduced the High-Speed Rail Investment Act of 2001 (HSRIA). The legislation is almost identical to that of last year's High-Speed Rail Investment Act (S. 1900), which narrowly failed to pass. The recently introduced high-speed rail legislation will allow $12 billion (as opposed to $10 billion proposed last session) in Amtrak financed bonds to be sold over the next decade. The bonds are intended to supply Amtrak with funds to develop a national high-speed rail system. States will be required to make a match of 20 percent of the cost of the project. The bill enjoys bipartisan support with 51 cosponsors including Majority Leader Sen. Lott (R-Miss) and Minority Leader Sen. Daschle (D-Ill). Supporters of the measure consider the bill necessary to help the nation's overburdened highways and airways.
Position: NCSL strongly supported the High-Speed Rail Investment Act (S. 1900) introduced last session. The recently introduced version has a few slight changes in language and NCSL is working with Amtrak officials and congressional staff to clarify them.
FY 2002 Budget Threatens Transportation Programs
The Bush administration's proposed FY 2002 budget, due in final form to Capitol Hill next month, does reflect Transportation Equity Act of the Twenty-first Century (TEA-21) appropriate authorized funding levels. However, falls short of funding full aviation increases as prescribed in the Aviation Investment Reform Act of the Twenty-first Century (AIR-21). AIR-21's capital programs, which include the state Airport Improvement Program and Facilities and Equipment, fall $368 million short of the FY 2002 authorized level. FAA Operations is $200 million less than levels set by AIR-21. The FY 2002 budget plan as it now stands is expected to meet strong opposition in Congress.
Position: NCSL strongly encourages funding levels to reflect the amounts authorized in AIR-21 and TEA-21. NCSL believes Aviation Trust Fund and Highway Trust Fund revenues should be used solely for transportation programs. NCSL comments on transportation funding levels in the proposed FY 2002 budget can be found at http://www.ncsl.org/statefed/ltravfy1.htm
Energy Legislation Introduction Soon
Vice President Cheney announced February 6, he will develop a comprehensive energy plan separate from the Senate Republican energy package. Sen. Murkowski (R-Alaska) plans to introduce a package of energy bills after the President's Day recess. The energy package is said to focus on drilling, conservation and new technology. The package aims to reduce U.S. dependence on foreign oil by proposing a measure that allows drilling in the Arctic National Wildlife Refuge. The package will contain various business related tax provisions such as incentives for domestic oil and gas development, use of renewable energy sources and research and development of clean coal technology. A portion of the energy package gives states the authority to allow alternative fuel vehicles to use high-occupancy or special 'diamond' vehicle lanes on major highways. State and local agencies would also be awarded 'alternative fuel vehicle credits' for any work toward installing alternative fuel vehicle infrastructure.
Pipeline Safety Legislation Passed
The Senate Thursday, February 8, passed the Pipeline Safety Improvement Act (S. 235) introduced by Sen. John McCain (R-Ariz.). The introduced legislation was passed in the Senate last session, but failed to pass the House. The legislation was met yesterday with opposition because of a provision accused of being too industry friendly that called for only periodic pipeline inspections. The legislation was amended to mandate pipeline inspections at least every five years. The mandate includes exceptions in the case of lack of testing capability or if the inspection would cause a crucial disruption of energy supplies as determined by the Department of Transportation (DOT). The bill increases maximum civil penalties for violations and authorizes FY 2002 - FY 2004 state pipeline safety grants of up to $8 million per year. The measure increases state authority by allowing states to enter into a partnership with the DOT and share authority with interstate pipelines. Currently those states with shared authority are: Arizona, California, Connecticut, Iowa, Michigan, Minnesota, New York, Ohio, Virginia, West Virginia, and Washington. The House is likely to consider alternative legislation similar to bills last session that would have imposed more stringent inspection and penalties on the industry.
NCSL Staff:
Eileen Doherty
Committee Director
AFI Energy and Transportation Committee
(202)624-8687
Laurie Holmes
Staff Assistant
AFI Energy and Transportation Committee
(202)624-8695
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