Energy & Transportation Update
An Information Service of the AFI Energy and Transportation Committee
October 5, 2001
Volume II, Number 6
House Introduces Rail Improvement Bill
On September 25, 2001, Chairman Young (R-Alaska) of the House Transportation and Infrastructure Committee introduced H.R. 2950, the "Rail Infrastructure Development and Expansion Act for the 21st Century" (RIDE-21). The bill would authorize states to issue $36 billion in federally tax-exempt bonds for high-speed rail projects over 10 years. It would provide $35 billion in loans and loan guarantees for freight and commuter rail improvements. Chairman Young stated that other bills, such as "The High-Speed Rail Investment Act" (H.R. 2329 and S. 250), provide for $12 billion over ten years but fall short of the $50 - $70 billion in estimated costs to develop high-speed corridors in the U.S. RIDE-21 authorizes states to develop the high-speed rail proposals that will be submitted directly to the U.S. Department of Transportation for review. States would also control the bond proceeds, how they are managed, and how they are spent.
On Tuesday, October 2, the House Railroad Subcommittee held a hearing on H.R. 2950. The subcommittee agreed that funding needed to be available in order for rail travel to be a viable alternative to air travel. The members did not reach agreement on how that funding should be made available. House Railroad Subcommittee Chairman Jack Quinn (R-N.Y.) said a state issued tax-exempt bond "mechanism will give states flexibility to make transportation decisions." House Transportation and Infrastructure Committee ranking member James Oberstar (D-Minn.) commented that states have been able to issue tax exempt bonds for years and haven't used them. He also stressed the need for federal investment in rail that is not contained in RIDE 21. State government officials also testified in favor of federal participation. Many members suggested that H.R. 1020, a bill introduced by Chairman Quinn, be attached to RIDE 21. H.R. 1020 has bi-partisan support but has not yet seen floor action. The bill would establish a program of direct grants to smaller freight railroads for rehabilitation and improvement. The bill would authorize $350 million per year for fiscal 2002-2004. The House Railroad Subcommittee ranking member, Representative Clement (D-Tenn.), has not signed on to RIDE 21 but has expressed his support for H.R. 1020 because he believes federal investment is necessary, especially for smaller states.
To ensure state opinions are heard on Capitol Hill, NCSL's Rail Working Group is organizing Rail Lobbying Days on October 9 and 10, 2001 and would like as many state legislators as possible to come to Washington, D.C. to lobby this rail legislation.
For more information please visit NCSL's web page at www.ncsl.org/statefed/RWGld10.htm.
For a side-by-side analysis of the two different types of high-speed rail bills please see the attached chart.
Congress Passes Bill in an Effort to Ease Airlines' Financial Woes
On September 21, 2001, Congress passed H.R. 2926 and Senate companion bill S. 1450 that provides U.S. air carriers with financial assistance following the September 11 terrorist attacks. The bill authorizes $5 billion in cash for direct losses stemming from the attacks. These funds will be distributed to passenger lines ($4.5 billion) based on "passenger seat miles" and cargo lines ($0.5 billion) based on "revenue-ton miles". The grants are required to cover the airline's direct losses as a result of the federal ground stop in addition to related losses through December 31, 2001. The bill authorized $10 billion in loan guarantees to the airlines. A board will determine how the funds will be distributed. The bill also includes an extension due date for excise payments, limits airlines' liability for lawsuits, establishes a Victim Compensation Fund and caps airline executives' salaries at their 2000
levels for the duration of any loan guarantee their companies receive. Additionally, the legislation provides $120 million to maintain essential air service to small communities.
Congress is Considering Aviation Security Legislation
President Bush announced the administration's plan for airline and airport security Thursday, September 27, 2001 at Chicago's O'Hare Airport. The plan called for federal management of passenger and baggage screening at airports, federal financial support for the use of National Guard troops for increased security at airports and a dramatic increase in the number of air marshals on U.S. airlines. Airport and airplane security issues are headed toward a drawn-out debate on what role the federal government should play in controlling, monitoring and staffing airport screening. Also under consideration are options to increase cockpit security, broaden hijack training and flight school background checks and identify mechanisms to pay for any airline/airport security enhancements. Prominent bills that reflect some of the administration's request are S. 1447 (Senator Ernest Hollings, D-S.C.) and H.R. 2895 (Representative Bill Lipinski, D-Ill.). Senate Majority Leader Tom Daschle (D-S.D.) attempted to bring S. 1447 to the Senate floor under an unanimous consent agreement on Wednesday, October 3, 2001. Senate Minority Leader Trent Lott (R-Miss.) objected to the unanimous consent request because the bill did not pass through the usual committee process. Senator Lott expressed concern about the numerous amendments to the bill. Another concern Senator Lott raised related to the bill was the establishment of federal screeners at hub airports while non-hub airports would use local and state law enforcement officials. Unless an agreement is reached to consider the bill, Senate floor action will not take place until next week. More information on the recently proposed aviation bills is available at www.ncsl.org/statefed/AIR21cb.htm
NCSL Sends Letter Voicing Concern on State Energy Authority
On September 18, 2001, Arizona Senator Lori Daniels, NCSL Energy and Transportation Committee Chair, sent a letter to the Senate Energy and Natural Resources Committee expressing opposition to electricity measures contained in Senate legislation. Prompting concern is a Senate proposal that preempts state authority in numerous areas including: retail sales, bundled transmission, reliability and siting of transmission facilities through the use of eminent domain. The letter urged the committee "to retain state authority to establish retail sales rates, to voluntarily participate in regional transmission organizations (RTOs), to ensure reliable transmission service and to continue state legislative oversight over the approval and siting of all major energy conversion facilities." It remains uncertain if national energy legislation will move this year. You can access the letter on NCSL's website at www.ncsl.org/statefed/NEP918.htm.
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 |
