During the week of November 18, 2002, conferees on H.R. 4, comprehensive national energy legislation, ended negotiations that started June 2002. Compromise provisions on dozens of issues were tossed, but Senate and House advocates vowed to "start fresh next year". Representative Billy Tauzin (R-Louisiana), recognizing the conference's inability to resolve such issues as Arctic National Wildlife Refuge drilling, electricity transmission and ethanol-related matters, offered up a trimmed-down pipeline safety and nuclear energy liability reauthorization compromise. The Senate rejected the offer. The administration strongly backed the Senate vote, refusing to accept anything without an electricity restructuring title. Both houses did approve in a separate bill (H.R. 3609) the energy bill's pipeline safety provisions. The pipeline safety legislation requires initial pipeline inspections within 10 years after enactment and reinspections every seven years. H.R. 3609 is now on its way to the president's desk.

The energy bill's controversial issues will be revisited when the Republicans take Senate leadership in the 108^th Congress. Senator Jeff Bingaman (D-NM), Senate Energy and Natural Resources Committee chairman, warns that increased fiscal strains may force cuts in the $34 billion energy tax title next year. Senator Pete Dominici (R-NM), incoming chairman of the Senate Energy and Natural Resources Committee, and Senator James Inhofe (R-Okla.), incoming chairman of Senate Environment and Public Works Committee, will most likely promote Corporate Average Fuel Economy standards, electricity transmission regulations and Arctic National Wildlife Refuge drilling.

Senator James Inhofe (R-Okla.), is slated to become chairman of the Senate Environment and Public Works Committee. Senator Inhofe is expected to promote the Transportation Empowerment Act (S. 2861), which he introduced in August of 2002. The Transportation Empowerment Act would amend the Transportation Equity Act for the Twenty-first Century (TEA-21) provisions regarding states' Highway Trust Fund (HTF) apportionment by significantly increasing state responsibility for transportation planning and funding. Senator Inhofe announced general committee priorities in November, including the nation's transportation infrastructure issues, but said he intends to work with the subcommittee chairs and develop a comprehensive priority list over the next few weeks.

Senator Christopher Bond (R-Mo.) announced last month that he would become chairman of the Senate Environment and Pubic Works Committee's Transportation, Infrastructure and Nuclear Safety Subcommittee. The Subcommittee will have jurisdiction over the highways portion of the reauthorization of the TEA-21, which is due to expire September 30, 2003. Senator Bond has been credited with legislative feats such as crafting the measure that ensured all money coming into the HTF is actually spent on transportation projects. Senator Bond also led a successful fight against efforts to reduce or repeal the federal gas tax. Senator Bond will also sit on the Budget Committee and the Appropriations Committee.

Senator John McCain (R-AZ), chairman of the Senate Commerce, Science and Transportation Committee, announced the committee's initiatives for next session. The Committee will hold a series of hearings for the following topics:

• TEA-21 safety programs;
• intercity rail passenger service and comprehensive reform of Amtrak;
• Federal Aviation Administration reauthorization; and
• security measures for the nation's transportation system.

The House Transportation and Infrastructure Committee will remain nearly unchanged with nearly all members returning and leadership remaining in Republican hands. The Committee will return with only eight seats left vacant by members who did not seek re-election, retired or were defeated in the primary election. The Committee has announced that next session priorities will be the reauthorization of TEA-21 and Aviation Investment Reform Act for the Twenty-first Century (AIR-21), which both expire September 30, 2003. Legislation to reauthorize and fund Amtrak may also be considered next year.

On November 12, 2002, the Department of Transportation's National Highway Traffic Safety Administration (NHTSA) issued a draft notice of a proposed rulemaking to the Office of Management and Budget (OMB). NHTSA will propose to raise the corporate average fuel economy (CAFE) for Sport Utility Vehicles (SUVs), light trucks, and minivans for model years (MY) 2005-2007. The OMB and the Department of Energy are required by law to review the proposal before the notice of a proposed rulemaking is published. The final rule increasing fuel economy standards must be published by April 1, 2003, in order to provide the automobile industry 18 months to make design changes in the MY 2005 fleet of vehicles. The current standard of 20.7 miles per gallon has not changed since 1996. Unofficial reports speculate the standards will be raised roughly half a mile per gallon each year in the 2005-2007 MYs, totaling 1.5 miles a gallon by MY 2007. The administration says the fuel economy proposal was not influenced by the potential war with Iraq but was influenced by improving passenger safety and protecting American jobs. As current law stands, NHTSA is required to consider energy conservation, passenger safety, job protection and environmental quality when studying the possibility of raising the standards.