Energy & Transportation Newsletter March 2003

Energy & Transportation Update

An Information Service of the Energy and Electric Utilities Committee and Transportation Committee

March 4, 2003
Volume IV, Number 1

Congress Passes Remaining FY2003 Appropriations

On February 13, 2003, Congress passed an omnibus appropriations package (H.J. Res. 2) combining 11 of the 13 remaining appropriations measures into a $397.7 billion spending bill.

Transportation FY2003 Appropriations

The conference report sustains federal-aid highway funding at $31.6 billion* in FY2003, defeating a White House effort to fund the federal-aid highway program at $27.7 billion.

The Grants-in-Aid for Airports program will receive $3.37 billion in FY2003, slightly less than the authorized amount in the Aviation Investment Act for the Twenty-first Century (AIR-21) of $3.4 billion. The funds are eligible for planning and development projects at the nation's airports.

Amtrak will get $1.04 billion in capital funding in FY2003. The money will not be given directly to Amtrak, but it will be allotted to the secretary of transportation, who will make grants to the rail system. The money is also accompanied by reporting requirements designed to improve oversight.

Energy FY2003 Appropriations

The Department of Energy was appropriated $20.7 billion for FY2003, including $419 million in renewable energy resources. The conference report includes language that strips a previous House-passed provision that would have barred funds for pre-drilling work in Alaska's Arctic National Wildlife Refuge (ANWR). House Republicans denied the measure that in any way encourages commercialization in ANWR.

Spending on a federal nuclear waste storage site in Yucca Mountain, Nevada, was set at $457 million, a compromise between Senate attempts to size down the figure and White House attempts to increase it. The funding for nuclear waste disposal exceeds the Senate omnibus bill by more than $100 million but falls short of the administration's $590 million request.

The energy and water portion also contains an extension of the Price-Anderson Act, the nuclear insurance plan for nuclear power plants, until Dec. 31, 2003.

* H.J.Res. 2 included a 0.65 percent across-the-board rescission to hold down overall spending. Amounts in this section reflect the 0.65 percent cut.

President's FY2004 Budget Proposal Unveiled

On February 3, 2003, the Bush administration unveiled its FY2004 budget proposal. Below is a summary of the transportation and energy budget requests.

FY2004 President's Budget Request
Dept. of Transportation Summary

President Bush requests the Department of Transportation receive $54.3 billion in FY2004 - a $9.9 billion decrease from the FY2003 enacted level.

Highways

The FY2004 budget request includes an obligation limitation of $29.3 billion for the Federal-Aid Highways Program. The proposal unveils a new $1 billion Infrastructure Preservation and Maintenance initiative specifically aimed at addressing immediate highway needs and at projects that can be implemented quickly. The administration's FY2004 budget proposes that instead of 2.5 cents per gallon of federal gasohol tax transferred into the General Fund of the Treasury, all revenue from federal gasohol taxes would be deposited directly in the Highway Trust Fund. The 2.5 cents transfer should increase available receipts by over $600 million per year.

Airports

The administration requests $14 billion in FY2004 for the Federal Aviation Administration.

The proposal requests $3.4 billion for the Grants-in-Aid for Airports program. The funds are eligible for planning and development projects at the nation's airports, including grants for security, safety, capacity and noise-reduction projects. Funding includes $70 million for administration expenses and $17 million for airport-related technology research.

The administration requests $50 million in FY2004 for the Essential Air Service program. The program is to be fully financed through aviation overflight fees. The budget proposes significant changes to the program to target subsidies where they are most needed, require local support through matching funds, and broaden the program to provide transportation alternatives where alternate airports are within reasonable driving ranges.

Rail

The president requests $1.089 billion in FY2004 for Federal Rail Administration. The budget proposal includes $900 million in grants for Amtrak which represents less than the $1.2 billion Amtrak argues it needs to maintain its operations for FY2003, let alone FY2004. Of the $900 million, $671 million will go toward operating costs and the remaining $229 million for maintenance and for capital and infrastructure improvements. The administration will work with Congress and the states as part of the reauthorization of intercity passenger rail to better define the federal/state partnership in support of that service. As part of the proposal, states will be encouraged to contribute funding to those routes they believe are critical to their transportation needs.

The budget proposal also requests $23 million to support high-speed train control systems, track and structures technology, corridor planning, grade crossing hazard mitigation and high-speed non-electric locomotives.

Amtrak is requesting $1.812 billion in appropriations for FY2004.

Transit

The proposal request of $7.2 billion in FY2004 for the Federal Transit Administration is nearly level with the amount enacted in FY2003 of $7.17 billion. The budget proposes to consolidate a number of transit programs to give states and localities additional flexibility to meet the mobility needs in their communities without the constraints and administrative burdens that the current budget structure imposes. The budget request includes:

$4.7 billion ($34 million increase from the FY2003 request) for federal transit funding for urbanized areas;
$1.5 billion ($300 million increase from the FY2003 request) for the New Starts program and expands eligibility to permit funding for new, more cost-effective technologies.
$359 million ($63 million increase from the FY2003 request) for federal transit funding for rural communities.

$91 million ($18 million increase from the FY2003 request) for Planning Programs and creates new Planning Capacity Building Program.

Other

The budget request also includes $67 million for Pipeline Safety. The figure represents a $3.2 million increase from the FY2003 enacted amount. Hazardous Materials Safety Program

FY2004 President's Budget Request
Dept. of Energy Summary

The president's budget requested $23.4 billion for the Department of Energy (DOE) in FY2004 - an increase of $784 million from the FY2003 enacted amount.

Electricity:

The budget request addresses electricity reliability needs of the nation's electricity transmission grid with a request of $76.9 million in FY2004 for electricity reliability initiatives. The funding would go towards the development of technologies that could relieve congestion along the grid, improve distribution systems, and reduce consumption and increase production of electricity during periods of peak demand. The proposal unveils a new office within the DOE dedicated to studying and addressing the shortage of electricity transmission capacity.

Coal:

Clean coal technologies would receive $321 million under the FY2004 budget request, including $130 million for the Clean Coal Power Initiative and $190 million for coal research and technology projects.

Energy Efficiency and Renewable Energy:

The energy efficiency FY2004 request totals $876 million - a $8.3 million decrease from the FY2003 enacted amount. Renewable energy categories saw a decrease in research initiative funding. Wind, geothermal and biomass funding saw a cut in the FY2003 enacted amount of $2 million, $5 million and $20 million respectively.

The president's proposal unveiled the FreedomCAR and Fuel Initiative which would develop the technology needed for commercially viable hydrogen-powered fuel cells to power cars, trucks, homes and businesses. It includes $720 million in new funding over the next five years to develop the technologies and infrastructure needed to produce, store, and distribute hydrogen fuel.

Nuclear Energy:

The National Nuclear Security Administration saw a $735 million increase from the FY2003 enacted amount to $8.8 billion for the FY2004 request. The requested amount for the Yucca Mountain nuclear repository projects was level with the FY2003 request and $131 million less than the FY2003 enacted amount.

Energy Assistance Programs

The Weatherization Assistance Program would receive $288 million under the budget proposal for FY2004, up from FY2003 enacted amount of $224 million. The president requested $2 billion in FY2004 for the Low Income Home Energy Assistance Program (LIHEAP) - including $1.7 billion for formula block grants to states and $300 million for contingency funding. The FY2004 request is level with the FY2003 enacted level. LIHEAP is funded through the Department of Health and Human Services.

NCSL Staff:

Eileen Doherty
Committee Director
Energy and Transportation Committees
(202)624-8687

Laurie Holmes
Committee Assistant
Energy and Transportation Committees
(202)624-8695

AFI Energy and Transportation Committee

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