Energy & Transportation Update
An Information Service of the AFI Energy and Transportation Committee
April 2, 2002
Volume III, Number 7
FY2003 Highway Funds Partially Restored.
Efforts by NCSL and other organizations to offset a possible 29% highway funding reduction for next year reaped significant dividends the week of March 18. The House adopted its FY2003 budget resolution, H.Con.Res 353, on March 20. Section 204 of H.Con.Res 353 increases outlays for FY2003 highway, highway safety and construction programs by $1.18 billion. This effectively raises the highway obligation ceiling to $27.7 billion, the exact ceiling set in TEA-21. The House's action overcomes an reduction in the obligation ceiling compelled by revenue aligned budget authority (RABA), a TEA-21 formula calculation that served states well for the past four years, but forced a decline in the obligation ceiling for FY2003 to $23.3 billion. The revised obligation ceiling was negotiated among representatives of the administration and House Budget Committee and House Transportation and Infrastructure Committee members. In going to $27.7 billion in obligation authority, members made five additional agreements. First, House sponsors of H.R. 3694 (over 300 cosponsors with NCSL support) would suspend their action on that legislation seeking to raise TEA-21 funding. Second, the administration would report back on what fiscal sources they will use to get the additional outlay dollars. Third, House members will resist efforts to make the FY2003 obligation ceiling the same as the FY2002 ceiling of $31.8 billion. This does not mean that members are prohibited from attempting to increase the $27.7 billion level during conference committee. Fourth, all parties agreed to find ways to revise the RABA calculation. Finally, H.Con.Res. 353 ensures that any additional highway funding for 2003 will be distributed among the states according to TEA-21 formulas. This stifles potential attempts by appropriators to earmark the additional funds for special projects.
Two days after the House acted, the Senate Budget Committee trumped the House by setting a FY2003 highway obligation ceiling at $28.9 billion. The Committee's action followed on the heels of an intensive NCSL officer's campaign, conducted on March 20, to get the highway obligation ceiling raised. NCSL met with Transportation Secretary Norm Mineta, Senate Minority Leader Trent Lott, and Senate Democratic Policy chair Byron Dorgan-all of whom assured that states would not experience a 29% cut in FY2003 highway funding. The Senate budget plan fully funds the president's request for $4.8 billion for the newly-created Transportation Security Administration, which will coordinate and manage federal security efforts across all transportation modes and will be responsible for overseeing passenger screening and aviation security.
Energy Bill Has Slow Progress
Partisan battles have contributed to the energy bill's (S. 517) slow progress in the last few weeks. In all, 36 amendments were introduced with 27 getting approval. On March 13, 2002, the Senate passed an amendment drafted by Senators Carl Levin (D-Mich.) and Christopher Bond (R-Mo.) that directs the Department of Transportation's National Highway Transportation Safety Administration (NHTSA) to complete a rulemaking that would increase CAFE standards for light trucks (which includes sport utility vehicles). Current law requires passenger vehicles to attain a CAFE standard of 27.5 miles per gallon (mpg) and light trucks 20.7 mpg. The amendment does not establish specific targets. NHTSA would be required to release the rule within 15 months after the enactment of S. 517 and would require automobile manufactures to comply within six months thereafter. S. 517 also includes an amendment offered by Senator Zell Miller (D-Ga.) that would exempt pickup trucks from any increase in CAFE standards. Senators John McCain (R-Ariz.) and John Kerry (D-Mass) withheld their amendment to increase CAFE standards for both light trucks as passenger vehicles an average of 36 mpg by 2015. When the Senate resumes the energy debate April 8, the Finance Committee Chairman Max Baucus (D-Mont.) is expected to offer an amendment that would add a committee approved $16 billion energy tax incentives package, and Senator Frank Murkowski (R-Alaska) plans to offer a controversial amendment that would lift a ban on oil exploration in the Arctic National Wildlife Refuge. Senate Majority Leader Tom Daschle (D-S.D.) hopes to complete the energy bill debate after the Senate reconvenes.
Rail Legislation Introduced in the Senate
On March 6, 2002, Chairman Fritz Hollings (D-S.C.) of the Senate Commerce, Science and Transportation Committee introduced National Defense Rail Act (S. 1991), a measure that would authorize increased funding for Amtrak. The measure would extend Amtrak's authorization for five years and repeal the operating self-sufficiency requirement imposed by the Amtrak Reform and Accountability Act of 1997. The legislation would authorize $1.25 billion in emergency spending for Amtrak's security enhancements, $1.5 billion annually for corridor development, $35 billion in loan guarantees and $1.3 billion for Amtrak to repair and upgrade the Northeast Corridor. Senator Hollings explained, "We need to have a more balanced system of transportation for passengers in this country. Our economy depends on it, and our roads and airports could operate more efficiently in a balanced system. On February 15, 2002, Senator John McCain (R-Ariz.) introduced the Rail Passenger Service Improvement Act (S. 1958). Senator McCain's measure would require the Secretary of Transportation to create an Office of Rail Passenger Development and Franchising to oversee rail operations. The bill would establish an Amtrak Control Board to provide specified assistance to Amtrak to achieve financial stability and management efficiency. The bill would require Amtrak to establish subsidiaries overseeing specific functions such as operations and maintenance within one year. The measure also authorizes states to use federal highway trust funds to provide intercity rail passenger service. The Senate Commerce, Science and Transportation Committee held a hearing on rail issues on March 14, 2002. You can access the testimonies at http://commerce.senate.gov/hearings/hearings.htm. House Amtrak hearings are scheduled for next week.
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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 |
