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Environment and Natural Resources Committee
Environment Update
November 14, 2003
Volume IV, Number 3
Previous Issues
FY2004 FUNDING LEVELS REMAIN UNCERTAIN
On December 8, 2003, the U.S. House of Representatives adopted H.R. 2673, omnibus appropriations legislation that contains environmental program, grant and operations funding. Unable to enact its 13 annual appropriations measures, Congress tied the seven remaining appropriations measures, including VA-HUD and Independent Agencies, into the omnibus package. Because of various legislative riders and particular funding recommendations, Democrats have blocked a unanimous consent agreement needed to bring the bill up on the Senate floor. This means the legislation must be addressed in late January (the current and fourth continuing resolution expires on January 31, 2004) or another continuing resolution, perhaps lasting all of FY2004 will be considered. Whatever course of action is pursued makes only negligible difference for most environment programs. H.R. 2673 increases funding for the Clean Water State Revolving Fund by $1 million, taking it from $1.341 billion in FY2003 to $1.342 billion for FY2004. The Drinking Water State Revolving Fund has a similar increase of $1 million. The Drinking Water SRF's FY2004 would grow to $845 million from $844. If a yearlong continuing resolution were imposed, both programs would have FY2004 funding the same as FY2003. Superfund gets a hike from $1.265 billion to $1.42 billion, an increase that would be lost in a yearlong continuing resolution.
STATES SLAPPED WITH NONROAD ENGINE PREEMPTION
Grabbing defeat from the jaws of victory, Senator Dianne Feinstein (D-California) accepted an offer from congressional leaders to preempt all states but California from regulating small off road engines and equipment under the Clean Air Act beyond federal standards. Senator Feinstein had led an NCSL-supported effort to strike strict preemption language tendered by Sen. Kit Bond (R-Missouri) in S. 1584. That legislation makes annual appropriations for VA-HUD and Independent Agencies. It has been folded into H.R. 2673 (see above article). Not only did the California Senator concede preemption to all states but California, she accepted a reduction in the horsepower of regulated engines from 175hp to 50hp. Prior to reaching this agreement, appropriations conferees had agreed to strip the Bond amendment out of the conference report. At this writing, only defeat or a reworking of the omnibus appropriations bill would salvage existing state authority.
EPA ANNOUNCES FLURRY OF AIR-RELATED PROPOSALS
Uncertain of the fate of Clear Skies legislation, EPA Administrator Mike Leavitt unveiled last week proposed rules that would set new targets for reduction of power plant emissions in two phases. The "Interstate Air Quality Rule" calls for sulfur dioxide (SO2) emission reductions of 3.7 million tons by 2010 (a 40% reduction) and another 2.3 million tons by 2015 (a 70% cumulative reduction). Nitrogen oxide (NOX) emissions would be reduced 1.4 million tons by 2010 and 0.3 additional tons by 2015 (approximately 50% reduction from today's levels). Emissions would be permanently capped. A final rule is planned for 2005. Indications from Capitol Hill are that interest remains in passing legislation to codify the "Clear Skies" proposal and ensure that the Administration's actions would not be reversed if control of the White House were to switch as a result of the 2004 elections. Senate Environment & Public Works Committee Chairman Jim Inhofe (R-OK) and Clean Air Subcommittee Chairman George Voinovich (R-OH), cosponsors of the Clear Skies legislation, may hold hearings on the Bush administration's regulatory proposals early in 2004 to address questions surrounding how they would interact with and without the Clear Skies legislation in law.
In a separate action, the Administrator announced plans to reclassify mercury emissions. A December 2000 regulatory decision placed mercury under Section 112 toxic emission standards. The new proposals would shift mercury into Section 111 governance, calling for a cap and trade program limiting mercury emissions to 34 tons by 2010 and 15 tons by 2015. The mercury proposals must be unveiled by December 15, 2003.
On December 4, EPA notified states, localities and Indian tribes of areas that will not attain eight-hour national air quality standards for ozone. States can comment on the EPA's designations and can supply new data and analyses. However, EPA will make designations final in April 2004. Areas found to be in non-attainment usually must impose stricter controls on industrial facilities, revise inspection and maintenance programs and/or impose additional planning requirements for transportation sources. Nonattainment areas are also subject to New Source Review requirements.
UNFINISHED BUSINESS TOPS SENATE PRIORITY LIST FOR 2004
On November 25, 2003, Senate Majority Leader Bill Frist (R-TN) named passage of the Energy Committee Conference report as the number one priority for the Senate next year. The Conference report passed the House on November 18, 2003, by a vote of 246 - 180 (Roll No. 630), but consideration in the Senate was stalled when supporters of the bill were unable to muster enough votes to invoke cloture and end debate. (57 - 40. Record Vote Number: 456). The cloture motion was filed in response to a fillibuster of the bill led by Sens. Chuck Schumer (D-NY) and Barbara Boxer (D-CA) over the inclusion of liability protection for producers of the chemical methyl tertiary butyl ether (MTBE). MTBE is a fuel additive whose use in recent years has become controversial due to incidents of water contamination, which has resulted in a number of lawsuits including one filed by the state of New Hampshire Attorney General in October 2003. The vote on the cloture motion split primarily along regional lines with Republicans affected by MTBE, generally from the Northeast and New England states, joining the Democrats in opposing cloture. At the same time Midwest Democrats supportive of the ethanol and renewable energy provisions of the bill joined the Republicans in voting for cloture. The future of the bill remains uncertain as a number of options are being considered by both Congress and the President to ensure passage of the legislation.
HEALTHY FOREST RESTORATION ACT SIGNED INTO LAW
On November 21, 2003 while preparing to leave for Thanksgiving recess Congress approved the conference report for H.R. 1904, the "Healthy Forests Restoration Act." The report was approved by an overwhelming margin in the House, 286-140 (Roll no. 656), and passed by a voice vote in the Senate less than an hour after the House vote. The legislation is aimed at streamlining the process used for fuel-reduction projects that thin forests and aid in the prevention of wildfires. The legislation was signed into law on December 3, 2003 by President Bush (Public Law No: 108-148).
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