Energy & Transportation Update
An Information Service of the AFI Energy and Transportation Committee
February 27, 2002
Volume III, Number 4
House and Senate Introduce Transportation Funding Restoration Bill
On February 7, 2002, the House Subcommittee on Highways and Transit held a hearing with federal transportation officials on the reauthorization of TEA-21. Subcommittee members voiced concern about the FY2003 $9.1 billion decrease from FY2002 transportation funding reflected in the Bush administration's proposed 2003 budget, stressing a significant amount of jobs will be lost if funding is not reinstated. Federal Highway Administrator Mary Peters pointed out that "the calculation of the adjustment is not a policy call - it is a budget calculation based in law. As we discuss the reauthorization of TEA-21, we need to look for ways to smooth out current positive and negative swings that have resulted from the current formula." Many of the subcommittee members were determined to find a timely resolution, protesting there is close to $20 billion in the Highway Trust Fund now, and therefore no reason to cut transportation funding. Chairman Petri (R-WI) announced to the transportation officials that The Highway Funding Restoration Act (H.R. 3694, S. 1917) was introduced February 7 in both the House and Senate which proposes to set the federal highway obligation limitation for FY2003 at $27 billion - the amount guaranteed in TEA-21. NCSL sent a letter in support of The Highway Funding Restoration Act to Congress and the administration. It is accessible on the NCSL website at www.ncsl.org/statefed/rabapres202.htm
Senate Energy Debate Expected This Week
On February 15, 2002, the Senate heard opening statements for the floor debate on the Democrat's energy package (S. 517) and is scheduled to resume debate February 27, 2002. The bill, originally an Energy Department technology improvement bill, includes Sen. Tom Daschle (D-SD) and Sen. Jeff Bingaman's (D-NM) Energy Policy Act of 2002 (S. 1766). It also includes Sen. John Kerry's (D-MA) bill (S. 1926) that would increase fuel economy standards for automobiles and light trucks to at least 35 miles per gallon by model year 2013. Sens. John McCain (R-AZ) and George Voinovich (R-OH) are expected to offer their own amendments that would increase fuel economy standards. On February 13, 2002, the Senate Finance Committee passed legislation providing $14.5 billion in energy tax incentives. Democrats will offer the package as a free-standing amendment to S. 517 once the energy debate resumes. Heated partisan battles over the Arctic National Wildlife Refuge, ethanol tax credits, MTBE, fuel economy standards, and electricity industry regulation will drag out S. 517's floor consideration well into late March.
Amtrak Reform Council Releases Action Plan for Amtrak Restructuring
On February 1, 2002, Amtrak announced it will cut $285 million in expenses and lay off 1000 workers in order to keep operating in FY2002 and may stop its long-distance train service in October. Amtrak's announcement was made soon after Transportation Department Inspector General Kenneth M. Mead released a report that found Amtrak lost $1.1 billion in FY2001 and estimates Amtrak's capital needs are between $1 billion and $1.5 billion annually. Amtrak's president and chief executive officer stated that Congress must appropriate $1.2 billion or route cuts will have to be made at the beginning of the next fiscal year. Amtrak has not released a complete list of the trains being considered for elimination.
On February 7, 2002, the Amtrak Reform Council (ARC) submitted to Congress its recommendations to reorganize Amtrak. Amtrak would be restructured into three entities: a federal oversight agency, a government-owned and operated corporation to control the infrastructure between Washington and Boston (Northeast Corridor) that Amtrak currently owns, and a train operating company. In addition, the Council is proposing that the federal oversight agency, after a transition period, have the ability to allow private companies to bid to operate some of the train routes that Amtrak currently runs. The House Railroad Subcommittee will hold hearings next week to review the financial outlook for Amtrak and review the ARC's recommendations for reorganization.
President Bush Accepts Yucca Mountain Recommendation
On February 15, 2002, President Bush accepted Energy Secretary Spencer Abraham's recommendation to use Yucca Mountain as the nation's high-level nuclear waste site. Sec. Abraham's letter officially recommended Yucca Mountain based on "sound science" and cited national security, nuclear proliferation, energy security, homeland security and environmental reasons as justifications for the recommendation of the Nevada site. The Department of Energy (DOE) aims to open the nuclear waste facility by 2010, but industry experts have suggested it would take longer to complete the project. Sen. Harry Reid (D-Nev.) voiced his disapproval of the recommendation stating "President Bush has betrayed our trust and endangered the American public by deciding to ship 77,000 tons of nuclear waste across the entire country and store it at Yucca Mountain, Nevada. [Yucca Mountain] . . . would require shipment of nuclear waste on 100,000 trucks or 20,000 rail cars through 43 states. " The state of Nevada filed a legal challenge (Nevada v. Department of Energy) with the District of Columbia Circuit Court of Appeals on February 15, 2002. Nevada Attorney General Frankie Sue Del Papa filed the petition seeking to block the recommendation claiming that DOE withheld key documents from state officials and insufficient notice was given to state officials and the public - procedures specifically outlined in the Nuclear Waste Policy Act. Nevada Governor Kenny Guinn (R) has pledged to veto the project, but Congress can override the veto by a majority vote, according to the Nuclear Waste Policy Act. The decision to use the site will not be final until the Nuclear Regulatory Commission issues a license to DOE to operate the repository.
President Introduces Clear Skies and Global Climate Change Initiatives
On February 14, 2002, President Bush announced his Clear Skies and Global Climate Change Initiatives-strategies designed to cut power plant emissions of NOx, SOx, and mercury by 70 percent over the next 8 years and reduce the rate of growth of greenhouse gas intensity by 18 percent over the next 10 years. The Clear Skies program will build on the 1990 Clean Air Act's acid rain program using a cap and trade system to achieve the proposed reductions. Although not addressed in the proposal, staff to the White House Council on Environmental Quality confirmed that legislation to implement Clear Skies would most likely provide those power plants with an exemption to the New Source Review (NSR) program. NCSL is following this issue closely, as this would prohibit states from imposing more stringent emissions limits.
The Global Climate Change Initiative was designed by the administration as an alternative to the Kyoto Protocol. The program proposes to reduce greenhouse gas intensity- the ratio of greenhouse gas emissions to economic output or the gross domestic product (GDP). The effort is intended to improve the greenhouse gas (GHG) registry. This improvement will provide businesses incentives to invest in new, clearer technology and voluntarily reduce GHG emissions. Companies will be encouraged to voluntarily register, track and report emissions in order to gain credits for use in any future emissions trading program. The initiative calls for additional measures in 2012 if the proposed reductions are not met. The President's FY2003 budget proposal requests $4.5 billion for climate change programs, a $700 million increase from FY2002 appropriated level.
Energy & Transportation Update Main Menu
NCSL Staff:
Eileen Doherty
Committee Director
AFI Energy and Transportation Committee
(202)624-8687
Laurie Holmes
Committee Assistant
AFI Energy and Transportation Committee
(202)624-8695 |
