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Environment Update

February 26, 2002
Volume III, Number 2

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.

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 will resume debate February 27, 2002. The bill, originally an Energy Department technology improvement bill, includes Sen. Tom Daschle (D-S.D.) and Sen. Jeff Bingaman's (D-N.M.) Energy Policy Act of 2002 (S. 1766). It also includes Sen. John Kerry's (D-Mass.) 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-Ariz.) and George Voinovich (R-Ohio) are expected to offer their own amendments that would increase fuel economy standards. On February 13, 2002, the Senate Finance Committee passed Democrat legislation that would provide $14.5 billion in energy tax incentives, but Democrats will wait and 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.

Environmental Protection Agency's Budget Request for FY2003
The administration's FY2003 budget proposal released February 4, 2002 requested a total of $7.724 billion for the Environmental Protection Agency (EPA), $280 million less than EPA's FY2002 appropriations. Proposed changes in funding include a $138 million decrease in the clean water state revolving fund (SRF), a $12 million decrease in state pollution control grants and a $102 million increase in brownfields infrastructure funds (see Table 1). Senator Jeffords (I-Vt.), chairman of the Senate Environment and Public Works Committee has pledged to restore cuts in EPA's budget (see next item).

Table 1: President's FY2003 EPA Budget Proposal (Dollar amounts in millions)

Senate Bill Would Authorize $35 Billion in Water Funds
On February 15, 2002, Senators Jim Jeffords (I-Vt.), Bob Smith (R-N.H.), Bob Graham (D-Fla.) and Michael Crapo (R-Idaho) introduced the Water Investment Act of 2002 (S. 1961). The legislation would authorize $35 billion over 5 years to modernize the clean water and drinking water state revolving funds (SRF) and provide states more flexibility in how funds are allocated (see Table 2). The Senate Environment and Public Works Committee will hold a hearing on S. 1961 and other SRF-related legislation on February 26, 2002. A companion bill is expected to be introduced when the House reconvenes the week of February 25, 2002.

Table 2: Funding as Proposed in the Water Investment Act of 2002 (Dollar amounts in billions)

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.

Mark Your Calendars
AFI Spring Meeting
May 9-11, 2002
Hyatt Regency Capitol Hill
Washington, DC

• The Budget Crunch: How the Environment is fairing?

• Multi-pollutant Legislation and the Future of Command and Control Rules

• Toxic Release Inventory and Your State Freedom of Information Acts (FOIA): Is There a New Attitude Since September 11, 2001?

• Reauthorization of TEA-21: The Role of Environmental Streamlining

• The Use of Antibiotics in Animals

If you have additional questions contact the committee's staff person Molly Stauffer at 202-624-3584 or molly.stauffer@ncsl.org.

Molly Stauffer
Committee Director
(202) 624-3584

Laurie Holmes
Committee Assistant
(202)624-8695