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ENVIRONMENT

ABANDONED MINES LAND PROGRAM

The Abandoned Mine Reclamation Fund is a trust fund of the United States Treasury. It was established to provide money to states to eliminate the hazards to public health and safety and the environment created by coal mine sites that have not been restored. It is primarily funded by reclamation fees collected from coal mine operators. Contributions made to the fund are appropriated by Congress to states with EPA approved reclamation plans, and may be spent on the reclamation and restoration of land and water resources; and a variety of other related expenses.

In order to insure the stability of the program and to build on its accomplishments, the National Conference of State Legislatures urges Congress to appropriate to states in a timely manner for the purposes of the program, the entire amount of money annually deposited in the Abandoned Mine Reclamation Fund.

July 1994

CLEAN AIR ACT IMPLEMENTATION

The Clean Air Act Amendments of 1990 (CAAA) represent a major step toward addressing important environmental, air quality, and public health issues. The National Conference of State Legislatures (NCSL) fully supports its goals. It is essential that Congress and the U.S. Environmental Protection Agency (EPA) fulfill their responsibilities to facilitate implementation by the states. NCSL makes the following recommendations:

o The fee system mechanism of the CAAA provides the financial resources for the states to implement their responsibilities. However, the federal government should fully fund the implementation of the Act.

o To address ozone nonattainment problems, significant nitrogen oxide (NOx) and volatile organic compound (VOC) emission reductions must be obtained from both stationary and mobile sources. Other than auto emission testing, the federal government has the primary responsibility for regulating mobile sources; and it is essential that this responsibility be aggressively addressed. Any reduction that is not obtained from mobile sources must be obtained from stationary ones. Congress and EPA should take maximum advantage of tools and strategies, including but not limited to, reformulated and alternative fuels, exhaust standards, transportation control measures that reduce vehicle miles traveled (VMT), and mass transit to minimize mobile source emissions. In addition, federal highway legislation should be made consistent with CAAA objectives. Furthermore, the U.S. EPA and the Department of Transportation (DOT) should work together to assure coordination of federal policy. The states must be made full partners in transportation strategies that reduce VMT and urban sprawl and promote mass transit.

o The CAAA contain many sweeping and general mandates which will involve the exercise of broad discretion and interpretation by the EPA for their implementation. NCSL expects EPA to provide as much administrative flexibility as the law allows in order to achieve clean air goals in the most cost effective and efficient manner. NCSL urges EPA to mitigate the implementation burdens of the CAAA on states that result from inconsistencies in the Act, or from delayed EPA regulations that affect subsequent state regulations. States should not be penalized in the form of reduced timeframes to complete requirements of the Act, or be sanctioned when there has been a delay in federal regulations, data or guidance. EPA implementation of the CAAA should not jeopardize achievement of the Act's clean air goals.

o Numerous sections of the CAAA require the EPA to develop policy or technical guidance for the states to follow in their implementation process. This guidance is essential, as few states have the resources to develop it on their own. Often-times the CAAA provide little or no time between the deadlines for guidance and the deadlines for implementation by the states. NCSL urges Congress and the EPA to adjust their resource allocation and priorities to assure that the states receive the technical and policy guidance well before any enforcement deadlines.

o It is essential that the CAAA be implemented in a fashion to reduce competition and economic disadvantages between the states, and therefore EPA should develop guidance that is very clear, concise, and specific. At the same time, it is essential that the CAAA be implemented in a fashion which recognizes the variability of the problems across the nation and the unique legislative and regulatory needs of each state. Thus, the guidance must not be overly prescriptive and should allow flexibility.

o EPA should provide training opportunities for states to help develop the skills and understanding needed to properly implement the CAAA. In addition, EPA should provide informational resources to help the public understand its role in implementing the CAAA.

o Throughout the implementation process, it must be recognized that state and local governments have existing air pollution control programs to maintain. It would be inappropriate to prescribe for a state responsibilities equaling 110 percent of the state's resources without allowance for the state to maintain its existing programs. It would be inappropriate to apply sanctions when the state fails after reasonable efforts at achievement.

o The actual implementation of the CAAA is at the state level, and the states have a wealth of experience in implementing control programs. NCSL encourages Congress and the EPA to pay particular attention to the voices of that expertise and experience. EPA should establish a regular process for communication with state legislators and should develop a working group of legislators to become more actively involved in the implementation process.

o NCSL urges EPA to proceed diligently with full implementation of the CAAA to achieve clean air for our citizens.

o NCSL urges the adoption of national energy, transportation and other policy that emphasizes energy conservation in order to help achieve the goals of the CAAA. This should include strengthening of emission standards for automobiles as technologies improve, more energy-efficient lighting, buildings, and transportation, and more research and use of alternative forms of energy.

o NCSL urges the federal government to expeditiously apply the same CAAA requirements to federal facilities and vehicles that are required for state and local government facilities and vehicles.

July 1995

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ENVIRONMENTAL FEDERALISM

The National Conference of State Legislatures urges the federal government to renew its commitment to environmental protection and the state-federal partnership for environmental protection.

State governments, acting in partnership with the federal government, play an indispensable role in our mutual effort to protect natural resources and combat environmental degradation and pollution. State implementation of federal law is the cornerstone of our current system of environmental protection. Many of the most important laws protecting state citizens are federal laws. States are particularly dependent upon federal pollution control laws to address the interstate migration and affects of pollutants. Given the increasing trend of delegating more authority to the states, it is essential that the federal government not abandon its commitment to uniform minimum federal standards, the state-federal partnership and the very laws and agencies that guarantee the success of our partnership.

In furtherance of the above, the following principles should guide NCSL's federal lobbying efforts with respect to the state-federal environmental partnership:

o The present level of commitment and funding for natural resource and environmental protection efforts should be maintained; specifically, the federal government should continue its commitment to provide technical support, research and financial assistance to states;

o The federal government should provide funding to the states in the form of block grants that provide for maximum state flexibility to use federal monies in the manner which they deem proper and in a manner which is consistent with their intended purpose;

o Uniform minimum federal standards for environmental protection should be preserved and strengthened;

o Statutory authority for states to enact state environmental and public health standards that are more stringent than their minimum federal counterparts should be maintained and renewed;

o Within the framework of uniform minimum federal standards, states should have maximum flexibility in devising approaches and methods for obtaining compliance with such standards. The federal government should adopt performance based standards which prescribe the end to be accomplished and leave the means of obtaining the end up to individual states. In return for this new level of autonomy, the federal government should adopt a system of performance audits and objectively quantifiable benchmarks that would allow the federal government to certify state performance results in meeting uniform minimum federal standards;

o There should be consistent, uniform and vigorous federal enforcement of environmental laws to deter non-compliant behavior and to reward those who are acting in compliance with such laws. The federal government should continue its present role of overseeing the efficacy of state efforts to enforce uniform minimal federal environmental protection standards. States have a compelling interest in the uniform application and enforcement of federal laws in order to prevent pollution havens and to prevent states with lax enforcement from obtaining unfair economic advantages;

o In light of Seminole Tribe of Florida v. Florida, which suggests that citizens will no longer be able to sue states in federal court for violations of federal environmental protection laws, the federal government needs to allocate adequate resources to ensure compliance among the states.

o Cost-benefit analysis should be performed in environmental decision making. Sound public policy decision making demands that benefits should be proportionate to costs, after factoring in the totality of the circumstances. However, cost-benefit analysis should not be the only determinative factor in any environmental decision making process. Rather, such an analysis should be one of the many tools that inform decision makers in formulating sound public policy. In the face of uncertainty in devising analytical methods, any default assumptions that are employed should favor enhanced environmental protection.

o In order to finance environmental protection efforts, Congress should create funding mechanisms that consistently generate revenue solely for such uses. All monies from such funds should be fully appropriated for their intended uses. The Land and Water Conservation Fund (LWCF) provides an example of how a specifically earmarked environmental protection fund could operate. In 1965, Congress created the LWCF to finance America's investment in its public lands. The LWCF works by using a percentage of offshore-oil-lease money from federally owned lands to fund conservation efforts. The idea is simple: use money generated from resource extraction for resource protection. Without using any general public taxpayer monies, LWCF monies have financed thirty years of resource protection. This type of funding model should receive greater application; finally,

o NCSL supports a citizen's right to access public information. In an open democracy, the public should have access to publicly held information. NCSL supports "right-to-know" laws and other statutory and regulatory mechanisms that readily provide public access to public information.

July 1996

ENVIRONMENTAL FINES

All penalties collected by the federal government for noncompliance of federal environmental laws and regulations, except where the violator is solely the state, should be directed to the affected states in which the violation occurred.

All penalties collected by the U.S. Environmental Protection Agency for violations of the Clean Water Act that impact a national estuary should be applied to the implementation of the respective estuary's comprehensive Conservation and Management Plan.

July 1994

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ESTABLISHMENT OF A NATIONAL INSTITUTE FOR THE ENVIRONMENT

The National Conference of State Legislatures urges the establishment of a National Institute for the Environment to improve the scientific basis for decision making on environmental issues. In order to include state officials in the setting of priorities for the institute, we urge that a representative of NCSL be included on the proposed Institute's Board of Governors.

July 1994

EXPLORATION AND MINING OF MINERALS ON FEDERAL LANDS

Current federal statute allows private parties to apply for a patent to mine federal land (i.e. land title request) for $2.50 to $5.00 per acre. Once a mining patent is granted, private parties are allowed to assume permanent ownership of the land. Nearly all federal lands are eligible without regard for the environmental sensitivity of such lands.

Private parties granted ownership of federal lands pay no federal royalties on the proceeds from extracted minerals. In the past, many mines were abandoned without clean-up or reclamation. Non-reclaimed mining land is susceptible to erosion and other land despoliation. Such conditions often threaten ambient air and water quality and wildlife dependent upon such resources.

Private parties granted ownership of federal lands are not required to pursue mining activities. The owners may develop the land into unrelated business ventures such as hotels, ski resorts or other recreational facilities.

NCSL believes that current mining law should be amended to preserve and protect the environment and our economically valuable natural resources. Accordingly, NCSL recommends the following:

o States should be allowed to assume program responsibility over the regulation and oversight of mining on federal lands. States granted such authority should be allowed to recover the cost of implementation, administration and enforcement of their programs. States receiving delegation to oversee mining operations should meet minimum eligibility criteria.

o Persons engaged in mining activities should continue to be required to submit plans of operation and reclamation to the federal government or authorized state, the approval of which shall continue to proceed any mining activity. Reclamation plans should continue to include measures to return the surface land to an economically viable and environmentally beneficial condition upon cessation of mining activities. Permitting authorities should consider, in cases of approval or denial, the value of environmentally sensitive areas, as defined in the National Environmental Policy Act (NEPA), when considering applications to mine.

o All standards and requirements of state and federal law, including measures to protect fish and wildlife, should continue to be adhered to and enforced during mining activities and reclamation of affected lands.

o Mining activities and reclamation should be conducted so as to minimize adverse impacts to the environment, including vegetation, topography and habitat. Mining activities shall be consistent with approved mining and reclamation plans.

o The mined area must be protected from erosion and other land despoliation that may lead to air and water pollution or wildlife habitat loss.

o The federal government should only grant miners the use of federal lands to explore for and extract minerals. Fees should continue to be charged from the time that a claim is staked. Permanent ownership of federal lands shall not result solely from filing a mining claim. The federal government and authorized states should have authority to obtain reimbursement for administrative expenses incurred.

o The federal government and authorized states should have authority to collect royalties from industry on income generated from the production of minerals extracted from federal lands.

o Upon cessation of mining operations, the lands should be returned to public ownership. A national hardrock abandoned mines program should be created to clean up any environmental damage or mitigate unsafe conditions caused by past mining. Receipts from mining on federal lands should serve as the financing mechanisms for such a program.

o States should be allowed to assume responsibility for abandoned mine programs.

July 1995

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HAZARDOUS WASTE MANAGEMENT

Over the past two decades, the adage "out of sight, out of mind" has given way to a national program that seeks to encourage source reduction, high-technology treatment, and secure disposal of hazardous wastes. Congress enacted the Resource Conservation and Recovery Act of 1976 (RCRA), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), and subsequent amendments and reauthorizations of this initial legislation to implement its national program. Such legislation requires the treatment, storage and disposal of hazardous wastes and cleanup at contaminated sites so as to minimize the present and future threat to human health and the environment. Despite this national program, hazardous waste continues to be a significant environmental problem.

To address this issue, elected officials, federal and state agency administrators, industry leaders, environmental groups and the public must realistically assess potential environmental threats, continue to engage in an open dialogue, and attempt to find workable solutions to the increasingly complex problem of hazardous waste.

The National Conference of State Legislatures (NCSL) believes that the following principles must be accommodated in crafting a national solution to hazardous waste management:

o Hazardous waste is a widespread national problem which poses a significant potential threat to the environment.

o The public overwhelmingly supports programs that address the responsible treatment, handling and disposal of hazardous waste and the cleanup of contaminated sites.

o Improper treatment, handling and disposal of hazardous waste constitutes a national problem that deserves a national solution. The federal government has an appropriate role to play in crafting a coherent, coast-to-coast solution to abandoned and inactive hazardous waste sites. Congress should not abandon the federal government's commitment to cleaning up hazardous waste sites. Congress should not attempt to terminate the Superfund program through placing a numerical ceiling or cap on the number of sites that may be eligible for listing on the Superfund National Priorities List.

o The cost of properly stabilizing, treating and disposing of improperly disposed of hazardous waste is significant. Congress should continue to finance hazardous waste site cleanup efforts through national, broad based financing mechanisms that uniformly spread the costs of such cleanup efforts over a national revenue base. Congress must recognize that states acting alone do not possess the ability of the federal government to impose such costs nationally. Therefore, Congress should continue the present funding mechanisms that currently provide federal dollars for hazardous waste site cleanup efforts.

o Our nation's natural resources are one of the many victims of improper hazardous waste disposal. Natural resources constitute one of our nation's most valuable assets and must be safeguarded and in many cases restored.

o Aspects of the current system discourage recycling by regulating many byproducts as hazardous waste. A separate system for regulating hazardous materials destined for recycling should be established.

o Other methods for dealing with hazardous waste, aside from disposal, such as source reduction, pollution prevention, reuse and recycling should be encouraged and developed.

o A cleanup that is delayed is a cleanup denied. The federal government must promote measures that will expedite actual site cleanups and site construction activities.

Consequently, NCSL believes that any solution to our hazardous waste problems must include the following:

o Congress and the U.S. Environmental Protection Agency (U.S. EPA) should adopt policies that encourage both the hazardous waste content of products and industrial hazardous waste by-products be kept to a minimum, and that hazardous waste materials be reused, recycled or made non-hazardous whenever possible.

o Congress and the U. S. EPA should continue to fund, develop and improve hazardous waste risk assessments, toxicological profiles of priority pollutants found at Superfund sites and consequent long term health and environmental impacts data. The work of the Agency for Toxic Substances and Disease Registry (ATSDR) should be supported and expanded. Such studies and work should be funded through disbursements from the Superfund Trust Fund. Any information gathered from either federal or private sources should be subject to peer review and made available as needed.

o Historically, the federal government has been the largest producer of hazardous waste. Therefore, Congress and the federal government should adopt hazardous waste reduction policies to reduce waste and develop new and improved waste elimination technologies. Such policies should include new federal procurement guidelines that permit suppliers to modify their manufacturing processes to accommodate pollution prevention practices.

o Congress should adopt policies that promote the availability of affordable environmental liability insurance, including economic incentives for industry to establish its own voluntary insurance pool or insurance fund. This would alleviate the difficulty industry has had obtaining liability insurance for hazardous waste cleanup, and insure that money is available for cleanups.

o States should be allowed as much flexibility as possible in devising their hazardous waste management plans and regulations, including the setting of priorities.

o Congress should establish a mandatory Superfund cleanup schedule for the U.S. EPA to ensure prompt, but thorough investigation, study and cleanup of existing Superfund sites, and identification of new Superfund sites.

o The federal government must collect and disseminate to the public information on chemical storage, use and disposal practices by government and industry.

o State and federal hazardous waste management laws should be vigorously enforced in order to reduce potential human and environmental exposure and to maintain public confidence in such programs. In the absence of appropriate agency action, citizens should be allowed to avail themselves of such enforcement mechanisms.

o Congress should support policies that reduce the importation of hazardous waste from foreign countries based on treaties and other agreements.

o Congress should establish policies that decrease the dumping of hazardous waste in developing countries.

Regarding legal issues associated with hazardous waste management, NCSL supports:

o Health effects studies designed by the federal government should be comprehensive enough to be admissible as evidence in victims' compensation court cases.

o Cleanup liability protection for non-responsible landowners, renters, or lessees, and institutions or persons financing cleanup activities at a site previously contaminated by hazardous waste or petroleum products. Protection should be made available based on a cleanup plan instituted at the time a contract is entered into, but would not exempt entities from responsibility for hazardous waste disposal or practices that occurred on the property during their involvement.

o Limited liability protection for state and local governments owning, managing or utilizing a landfill that accepted hazardous waste and was later designated a Superfund site. NCSL should join with the National League of Cities and the National Association of Counties to pursue this relief.

With respect to attempts to reauthorize or amend CERCLA, NCSL believes that Congress should be guided by the following principles:

o No state laws or regulations shall be preempted or infringed. Compliance with state laws and regulations shall not be conditioned upon state governments paying the costs of such compliance.

o In the absence of compliance with state laws and cleanup standards, states should not be required to commit any resources to a particular site cleanup. In effect, states should not have to contribute financially to a cleanup that is not conducted in accordance with state law. It is inappropriate for the federal government to mandate state financial participation in constructing a remedy that is violative of state law.

o The current retroactive, strict, joint and several liability scheme must be reviewed for cost effectiveness, but should be maintained until Congress replaces it with a guaranteed new funding liability scheme that provides an equivalent level of resources for cleanups without any additional allocation of public funds. A more efficient private sector financing mechanism should be adopted as the primary funding source for Superfund cleanups. However, any new funding mechanism must maintain the "polluter pays" principle and ensure that private sector resources remain the primary funding source for Superfund site cleanups.

o Any modification to the current liability scheme must guarantee that liability determinations will not become further complicated or lead to an increase in transaction costs. Congress should focus its efforts on ways to reduce, not increase, litigation transaction costs at Superfund sites. The current "polluter pays" liability scheme results in responsible parties cleaning up the majority of Superfund sites (70%) and provides a powerful incentive for the proper disposal of hazardous waste that is currently being generated. Congress must remain mindful of the "collateral" benefits that have been produced thorough the operation of RCRA and CERCLA. Collateral benefits include activities such as improved waste management practices, recycling, pollution prevention measures and waste minimization.

o Any modification of the current liability scheme must ensure that the financial resources available to finance remedies at Superfund sites do not diminish. Similarly, any change in the current continuing liability scheme must not result in slower cleanups or higher transaction costs. Any reduction in private sector financial liability for Superfund sites must not result in an increase in public sector financial liability for such cleanups.

o Any attempt to alter the current liability scheme must recognize the fact that 23 states have liability schemes that closely reflect or mimic CERCLA's "polluter pays" approach to site remediation financing. Any alteration in the federal model will have far reaching implications for the ability of states to finance their own site remediation programs. This is especially true for those states without independent state legislative programs who rely upon CERCLA for their authority to address hazardous waste issues.

o The U.S. EPA estimates that over 700 hazardous waste sites are currently eligible, pursuant to hazardous ranking score (HRS) criteria, for listing on the National Priority List (NPL). Current reform efforts in Congress would limit the number of new sites that could be added to the NPL to approximately 100. By limiting the number of new sites that are eligible for the NPL, Congress is effectively eliminating the Superfund program. Beyond the additional 100 sites, the federal government will provide no further financial assistance to states in addressing over 600 hazardous waste cleanups. Many states have "banked on" this anticipated federal financial assistance in formulating their long term hazardous waste site remediation strategic plans. Congress should not eliminate the federal hazardous waste program nor its commitment to assist states in financing such hazardous waste cleanup efforts.

o Congress must not eliminate CERCLA's present site cleanup financing mechanism unless and until a substitute financing mechanism is adopted in its place that provides an equivalent and guaranteed level of funding for actual site cleanups and program activities. It is unacceptable for Congress to eliminate the present site cleanup financing mechanism without providing an equivalent alternative. In the event that Congress were to do so, state citizens would inevitably pressure state legislatures to fill the financing void in an effort to ensure that local hazardous waste cleanup efforts proceed as planned.

o Congress should reduce state "cost-share" requirements at Superfund sites. Congress should be mindful that the forced allocation of state resources to National Priority List (NPL) sites comes at the expense of state efforts to remediate non-NPL sites. Congress should limit the state "cost-share" at Superfund sites to 10% of remedial action costs and 10% of total operation and maintenance costs.

o States should have a greater role in all aspects of Superfund decision making. The U.S. EPA should be allowed to authorize states to manage the program if they request such a delegation. States should have state laws and regulations at least as stringent as those at the federal level in order to qualify for delegation. In addition to states being allowed to assume "primacy" for all aspects of the Superfund program, states should be allowed to impose their own stricter cleanup standards at sites. Regardless of any delegation of program authority to individual states, EPA should nonetheless retain authority to engage in emergency response actions at any location it deems necessary after appropriate consultation with the state concerned.

o Presumptive, standardized cleanup remedies should be available for sites which have common characteristics. Cleanup standards addressing "how clean is clean" must be adopted to streamline the remedy selection process. Congress should maintain the federal commitment to permanency in treatment. Permanent solutions to improperly disposed of hazardous waste must be accorded preference over attempts to control access or exposure to such waste. Long term economic redevelopment efforts will be hurt by a national policy that defers actual site cleanups.

o Completed remedy selections (i.e. site cleanup plans) at Superfund sites should remain intact and should not be reopened. Any attempt to revise or discard previous decisions regarding cleanup plans at Superfund sites will result in a dramatic slowdown of cleanup activity. States have a compelling interest in seeing that presently planned and scheduled cleanups remain on course. Further delays in construction activities at Superfund sites will further jeopardize the property values and welfare of state citizens that live in proximity to such sites. Pre-enforcement judicial review of remedy selection decisions will also delay site construction activities. Congress should maintain the prohibition on pre-enforcement review and resist any other efforts that will further delay actual cleanup and site construction activities.

o States should be granted a larger role in all aspects of decision making and remedy selection at federal facilities that are Superfund sites. Federal facility Superfund site cleanups should not be financed through the Superfund Trust Fund. Responsible parties that are agencies, political subdivisions or instrumentalities of the federal government should not be accorded preferential treatment with respect to any aspect of the Superfund program or state laws. Congress should fully fund efforts to promptly address contamination at federal facilities.

o Communities affected by Superfund sites should have direct and meaningful input into decisions regarding those sites. Community views on matters such as future land use shall be accorded "substantial weight" in any decision making process.

o Risk assessment and cost\benefit analysis should be considered during the remedy selection process. Any remedy selection process should fully factor in risks posed to sensitive subpopulations such a pregnant woman and children. Cleanup decision and remedy selection should be determined on the basis of public health and environmental protection and should not be pre-determined by requirements that mandate the selection of "lowest cost" cleanup options.

o Congress should create incentives for responsible parties to engage in voluntary cleanup efforts.

o The uncertainty surrounding the scope of the secured creditor exemption provided by the existing statute must be addressed. Congress must resolve the issue of "lender liability" in order to promote the development of formerly used industrial and commercial properties (i.e. "Brownfields"). Serious consideration should be given to codifying in statute the U.S. EPA regulations that were struck down in Kelly v. EPA, 15 F.3d 1100 (D.C. Cir. 1994).

o Congress should create an incentive program to foster the re-use of formerly used industrial and commercial properties (i.e. Brownfields).

o Congress should take the Superfund Trust Fund "off-budget" and provide that all monies collected pursuant to CERCLA's revenue raising mechanisms are used only to fund program activities and site cleanups. Furthermore, Congress should fully appropriate monies in the Superfund Trust Fund for the purposes stated and set out in CERCLA.

o States should be allowed to use Superfund Trust monies to assess natural resource damages to address discharges and releases pursuant to CERCLA and to remedy such damages. Congress should remain mindful of the fact that states have fiduciary obligations as the trustees for their natural resources.

o Federal natural resource damage provisions are necessary to ensure uniform, minimum standards to protect the public health and environment. However, the various federal statutes that contain such provisions must be flexible in order to allow states to best respond to local needs. Specifically, states should be authorized to apply state natural resource damage provisions that are stricter than their federal counterparts.

o Congress should not federally mandate a statute of limitation period for natural resource damages. Questions concerning the timeliness of legal actions should be a matter of individual state determination pursuant to state law.

o States should be given the opportunity to assume primary management and enforcement responsibility for natural resource damage programs. Their familiarity with local situations allows them to develop programs that are the most appropriate and effective. Congress should not place arbitrary liability "caps" on restoration budgets or damages resulting from the destruction or impairment of natural resources.

o Funding must be made available to states for natural resource damage assessment and restoration. Without funding, trustees are and will continue to be unable to assess damages to natural resources and develop and implement plans of restoration.

o States should be given the opportunity to recover all costs, including administrative costs, associated with a claim for natural resource damages against those parties responsible for the damage.

o The federal government should be subject to all state laws governing the cleanup of waste materials and be held responsible for payment of natural resource damages to states. Payment by federal facilities for state natural resource damages should be independent of Superfund monies.

o States should be provided with adequate federal financial and technical assistance in overseeing their natural resource damage programs.

o Congress must remain mindful that states are heavily dependent upon their groundwater reserves. States, as Fiduciaries, have obligations to safeguard their natural resources, which include groundwater. According to U.S. EPA surveys, 95 percent of rural and 35 percent of urban households obtain their drinking water from groundwater. Agricultural production is also very dependent upon groundwater. Groundwater cleanup remedies under Superfund should be consistent with the standards and requirements applicable to the use of that water.

o The implementation of activities designed to minimize both the use of hazardous materials and the generation of hazardous pollution by both the public and private sectors should be encouraged through federal legislation, environmental regulations and permits. Such efforts should be accompanied by strong federal enforcement.

July 1996

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MANAGEMENT OF FEDERAL LANDS

In 1976, Congress passed the Federal Land Policy Management Act (BLM Organic Act) reversing the 200-year national policy of returning public lands to private ownership; the Act provides for perpetual federal retention. Federal agencies are currently reviewing the uses of lands under federal jurisdiction.

Ninety-three percent of all lands under federal jurisdiction in the United States are located in the West, and over sixty-three percent of the land area in the twelve western states is federally controlled. This limits the western states' prerogatives in managing the uses of their own land and further limits the potential base of the states' economies. Units of governments whose property tax revenue bases have been reduced by large federal land holdings also require adequate funds to help make up the shortfall. With perpetual federal retention, Congress must assure state payments in lieu of taxes in perpetuity.

With the exception of wilderness areas and other generally accepted environmentally sensitive lands, the Federal government shall develop policies which maintain the flexibility of state and local governments to permit environmentally sound development of energy resources on Federal land. Any such policies shall prevent the potential adverse environmental impact on adjacent lands and waters, recreation, wildlife resources, and the overall environment.

Federal agencies are seeking to establish wilderness areas. The decisions on the potential inclusion of lands in the National Wilderness Preservation System or other designated use may affect the potential for state growth, energy development, recreation opportunities, revenue, and other state concerns.

Federal-state relations regarding federal agency land planning vary widely and suffer from a lack of specificity on how and when cooperation should take place. No meaningful mechanism currently exists in the wilderness review process for the involvement of legislatures as the state policymaking bodies.

The National Conference of State Legislatures therefore urges all federal agencies involved in the management of public lands to incorporate within their regulations provisions for a continuous and cooperative involvement of state governments in public lands policy and public lands management. Furthermore, NCSL supports remedial legislation which will guarantee a state role in public lands management and establish procedures for designations, disposition, or use of certain public lands found to be excess property.

Among the many functions of the federal agencies which have public lands management responsibilities are wildlife management, endangered species protection, wetlands protection, meeting the open space requirements of growing population, environmentally sound forest and rangeland management, payments-in-lieu-of-taxes to local governments, and the administration of mineral development impact loans. Increasing pressures on rangeland have made better management imperative. Federal agencies managing federal land should assure that uses both on-site and off-site do not cause adverse environmental impacts on the federal land or other adjacent lands or waters and provide special protection for wetland resources in light of the goal of no loss of wetlands.

Increasing energy development will impose heavy burdens on federal agencies to process lease applications properly and expeditiously and provide for protection of the environment. As Congress considers funding for federal agencies with public land management responsibilities, NCSL recommends that Congress assure appropriations sufficient for the full and proper execution of the agencies' legislative mandates.

If a federal wilderness designation occurs, state "inholdings" in wilderness designated areas should be exchanged with lands of equal or greater value outside of the proposed wilderness designation area.

July 1995

POLLUTION PREVENTION

In an effort to protect public health and the environment, and because it has been shown to be more cost effective than removing pollution from the environment after it has been introduced, the National Conference of State Legislatures supports the prevention of pollution at its source. To that end, NCSL supports:

o encouraging the implementation of activities designed to minimize both the use of hazardous materials and the generation of hazardous pollution by businesses and industry;

o federal legislation, environmental regulations and permits that require pollution prevention by businesses and industry, and the federal enforcement of these requirements;

o federal funding of pollution prevention research and development; and

o federal funding and providing of pollution prevention training, technical assistance, and regulatory guidance for states.

July 1994

PUBLIC-PRIVATE PARTNERSHIPS

The National Conference of State Legislatures (NCSL) believes that local units of state government (municipal corporations, municipal utility authorities, etc.) should be provided maximum flexibility in addressing local needs with respect to financing operations and capital intensive infrastructure improvements to publicly owned treatment works (POTW's). POTW's include assets such as waste water treatment plants and drinking water treatment facilities.

Various federal laws currently present structural barriers that have the effect of limiting local government options and discouraging financial restructuring of POTW's. The practical result of such laws is that local units of government are often discouraged from pursuing innovative POTW public-private partnerships. Accordingly, NCSL believes that Congress should eliminate laws that create institutional or structural barriers that have the effect of impeding local government's ability to restructure its assets or raise the capital necessary for costly improvements to POTW's through public-private partnerships.

Notwithstanding the above, NCSL takes no position with respect to the issue of whether any particular POTW should pursue a public-private partnership. The decision to enter such a partnership should be made by the local unit of government pursuant to the sound exercise of prudent business judgment. Nonetheless, if a local unit of government deems privatization of a particular POTW to be in the best interest of the environment, public health, safety and welfare, then there should be no federal structural impediments that frustrate the exercise of such local decisonmaking. In sum, federal laws should not have the effect of discouraging local governments from pursuing innovative financing options. During a time of scarce government resources, private sector investment in public utilities can offer the possibility of providing an economical and efficient way to ensure that necessary capital intensive infrastructure improvements occur and that POTW's are expanded as needed.

NCSL urges Congress and the Administration to make the necessary changes to federal laws and regulations to remove legal barriers and impediments to public-private partnerships.

Currently, public-private partnerships for POTW's are occurring pursuant to three Executive Orders: Executive Order 12803, Infrastructure Privatization, Executive Order 12875, Enhancing the Intergovernmental Partnership, and Executive Order 12893, Principles for Federal Infrastructure Investment. Accomplishing privatizations pursuant to these Executive Orders has proven inefficient and cumbersome. Accordingly, statutory changes are necessary to remove remaining barriers to the formation of public-private partnerships.

NCSL urges Congress to enact federal legislation codifying the objectives and principles, concerning POTW's, as outlined in Executive Order 12803, Infrastructure Privatization. This document instructs federal agencies to remove impediments to privatization of POTW's. NCSL specifically supports the following provisions of Executive Order 12803:

o Upon request, federal agencies should assist states in the privatization of federally financed POTW's.

o State-federal agreements regarding federal financing of POTW's should include sufficient flexibility to accommodate future privatization of those assets.

o State and local governments are the most familiar with their unique situations and should be allowed and encouraged to make choices they deem appropriate regarding provision of public services. These choices include the decision to privatize POTW's.

o Privatization agreements should include provisions ensuring that POTW's will continue to serve the public and protect the environment to standards required under relevant federal, state, and municipal laws, ordinances and regulations. Such public services should continue to be provided at reasonable rates. Additionally, environmental protection must remain as the paramount priority for all POTW's.

o Proceeds from privatization of public utilities should be distributed as follows. First, state and local governments should recoup their total investment. Next, the federal government should recoup total federal investment minus depreciation for reinvestment in drinking water and waste water programs. Finally, any remaining funds should be kept by the state and local governments.

Beyond the terms of Executive Order 12803, NCSL believes that the most appropriate course of action would be for the federal government to provide total loan forgiveness for any monies that were lent to finance POTW improvements. Such total loan forgiveness would be contingent upon a given state agreeing to use the unexpected additional revenue for infrastructure improvements at needy or underfinanced POTW's.

NCSL also supports Executive Order 12875, Enhancing the Intergovernmental Partnership. This executive order directs federal agencies to increase flexibility for state governments to meet the specific and unique needs of their communities. The Order also contains provisions allowing state governments to deviate from the original repayment provisions of federal loans that financed POTW infrastructure improvements.

NCSL also supports Executive Order 12893, Principles for Federal Infrastructure Investment. This executive order contains a directive that federal agencies include incentives encouraging public-private partnerships in infrastructure improvement loans.

NCSL believes that it is imperative for public-private partnership agreements to make diligent efforts to provide for placement of dislocated workers in municipal or private employment.

Finally, NCSL urges Congress to enact legislation in furtherance of the above objectives.

July 1996

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RADON

The National Conference of State Legislatures recognizes that radon in the home represents a serious threat to human health. In 1988, the U.S. Surgeon General identified radon as the second leading cause of lung cancer in the United States.

Therefore, NCSL urges Congress:

o To continue funding the State Indoor Radon Grants (SIRG) program so that states will have the funds available to develop programs to inform and assist their citizens regarding radon testing and mitigation;

o To continue to fund Regional Training Centers, which are of benefit to the states;

o To provide adequate federal financial assistance for federal radon programs;

o To direct the U.S. Environmental Protection Agency Safe Drinking Water Office to carry out further studies on the issue of radon in water;

o To insure that any effort to remove radon from drinking water take into consideration a risk assessment/cost benefit analysis of the human health hazard incurred by the presence of radon in the water. Assumptions made in the analysis should be identified and made available; and

o To continue its promotion of the awareness of radon hazards, particularly with respect to real estate transactions.

Furthermore, NCSL supports:

o The development of an accurate predictor of the amount of radon actually released from water into the home to address the current uncertainty;

o Expansion of the SIRG grant program to cover activities related to the optional adoption by states of model federal construction standards;

o The EPA radon proficiency program that sets standards for radon products and services; and

o Maximum state flexibility to develop radon programs that are tailored to meet their needs.

NCSL is opposed to the preemption by the federal government of state law.

July 1994

RECREATION AND PARK RESOURCES

In 1987, the President's Commission on Americans Outdoors released their final report which recommended a number of public and private actions needed to meet the nation's long-term recreation resource and service needs. One of these actions called for the development of a national trust fund. The Commission recommended that there be an equitable distribution of these outdoor recreation funds between federal, state and local governments, and private non-profit organizations.

The National Conference of State Legislatures (NCSL) encourages Congress and the Executive Branch to take action to adequately fund an outdoor recreation grant program which provides financial assistance to establish and maintain a nationwide system of parks, recreational areas and historic sites. NCSL recommends that the grants program address the following issues:

o Funds should be earmarked to encourage partnerships between the private sector and public entities.

o At least one-half of the receipts of the trust fund should be available for state and local governments.

o The planning requirements of the trust fund should encourage, but not require detailed statewide and local recreational planning.

o The trust fund should be designed to encourage states to adopt similar outdoor recreation trust funds on the state level.

o The level of funding should be consistent from year to year so state and local governments can adequately plan for acquiring funds to meet the matching requirements of the program.

o There should be financial incentives for state and/or local actions that meet national outdoor recreation goals.

July 1994

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SOLID WASTE MANAGEMENT

Recognizing the need to manage solid waste in an environmentally, economically, and politically acceptable manner, states are enacting comprehensive solid waste management plans. In the long run, source reduction and recycling offer the most economically and environmentally sound methods for dealing with a significant percentage of the solid waste stream.

The National Conference of State Legislatures (NCSL) believes that properly designed and operated landfills will continue to be a component of any comprehensive solid waste management plan. The volume of waste to be landfilled should be reduced and minimized through environmentally sound methods such as source separation to retrieve recyclable or reusable materials. Yard waste and some biodegradable materials should be composted rather than landfilled. Source separation should occur in all waste streams. Solid waste incinerators without energy recovery and landfilling should be limited, whenever practical, to non-toxic and non-hazardous materials that cannot be treated by any other economically and environmentally sound method. With respect to waste-to-energy or resource recovery facilities, their capacity should be designed for the solid waste volume remaining after source separation, toxic materials removal, recycling, and pollution prevention measures have been implemented.

The states are in need of the full cooperation and assistance of the federal government to accomplish their diverse solid waste management objectives. Recognizing the importance of a state-federal partnership and in support of the objectives of the Resource Conservation and Recovery Act (RCRA), NCSL makes the following recommendations:

o Congress should stimulate markets for recycled materials, recycling and source reduction and the development of comprehensive solid waste management plans. The federal government should undertake research and offer extensive technical assistance to states to aid in developing and managing comprehensive solid waste plans. The federal government should provide guidance on ways to safely handle and dispose of ash from resource recovery facilities.

o The federal government should significantly increase technical assistance to state and local governments in developing comprehensive source reduction, source separation, reuse and recycling programs while fully recognizing the primacy of state and local governments in solid waste management. The federal government should act as a clearinghouse to aid in coordinating exchange of technical information among states. The states and the federal government should work together to establish a method for uniformly measuring solid waste reduction and recycling. The development of solid waste management plans is a state and local government responsibility and the federal government should restrict its role to reviewing these plans for thoroughness and setting performance standards.

o It is essential that tax, legal, and financial incentives be developed and used to stimulate and develop markets for recycled materials and products manufactured from recycled materials, as well as to stimulate source reduction, reuse, and recycling programs. This would result in more competitive status for materials that are currently noncompetitive partially due to tax and financial incentives offered on virgin materials and throwaway articles. Strong incentive should especially be offered to promote reuse and recycling of products made from nonrenewable natural resources.

o Regulation, tariffs and transportation policies should be revised to remove artificial price supports in order to create regulatory parity between recyclable and reusable material and virgin material.

o The Congress and the federal government should act to stimulate national and international markets for reusable and recyclable materials.

o The provisions of RCRA requiring the federal government to promulgate regulations for federal procurement of recycled products should be fully implemented. The federal government should give priority consideration to the purchase of reusable and recycled products and allow a temporary price differential, where applicable, for goods made from recycled materials.

o The federal government should focus research efforts to determine what specific components of products create significant problems, not only for landfilling but also for composting, recycling, incineration, and other management techniques. The Congress should then amend RCRA or other pertinent statutes to either prevent the use of materials that create significant solid waste disposal problems or require the reuse or recycling of same.

o In cases where manufactured products cause an increase in toxicity in the solid waste stream, but are not regulated by RCRA, Congress should take steps that would remove such toxic materials from the waste stream.

o Federal requirements should be strengthened to encourage use of recyclable packaging that can be practically marketed. The effect of excessive packaging on the solid waste stream should be addressed. The federal government should act to require or encourage reduction or elimination of toxic elements in packaging and printing nationwide.

o The federal government should review packaging, particularly the new breed of plastic containers, with a view toward establishing criteria for reduction and to facilitate the safe and affordable recycling of packaging materials.

o Federal programs should be directed towards extensive public education on the need for reducing and recycling solid waste, including unit pricing.

o Congress should provide for a limited waiver of the Commerce Clause to provide states with the greatest authority possible to manage solid waste. Such a waiver should allow states to restrict imported waste and to allow restrictions on the exportation of waste, including the imposition of differential fees.

o Funds received from any permits authorized by federal law and issued by states for purposes of management of solid waste shall be expended as determined by state legislatures.

July 1995

STATE FEDERAL RELATIONS FOR ENVIRONMENTAL PROGRAMS

To foster cooperative state-federal relations and to prevent the duplication of federal and state government efforts to protect the nation's environment and natural resources, the National Conference of State Legislatures advocates the following measures:

o Congress and the Executive Branch should consult with the appropriate state legislative and administrative officials during the process of enacting federal environmental legislation and in developing and implementing regulations.

o States should be given the opportunity to assume primary management and enforcement responsibilities for environmental programs. Their familiarity with local situations allows them to develop programs that are the most appropriate and effective. Primacy should be encouraged through the implementation of incentives such as flexibility and technical assistance.

o Federal environmental laws and regulations may be necessary to ensure uniform, minimum standards to protect the public health and environment. These laws should be flexible in order to allow states to best respond to local needs, they should always be accompanied by adequate federal funding and they should not preempt existing state law and programs except as necessary to achieve the minimum national standards.

o Federal environmental programs including permitting should be consolidated and coordinated. Such efforts can produce savings, administrative improvements and increased effectiveness in the intergovernmental system.

o Cost sharing arrangements for protection of the environment or the cleanup and containment of environmental pollution should be determined through close intergovernmental consultation and cooperation with all affected entities.

July 1995

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WATER QUALITY

Clean Water Act

The National Conference of State Legislatures (NCSL) believes that water quality throughout the nation must be protected and in many areas restored. NCSL also believes that the framework established under the current Clean Water Act has enabled states and local governments, working in concert with the federal government, to make progress toward cleaner water. Further, the Act has served to promote recycling and reuse of pollutants that might otherwise be discharged into the nation's waters.

The federal government phased out the federal grant program and established State Revolving Funds (SRFs) for addressing the wastewater treatment needs of the nation. Although the SRF program was originally intended to expire in 1994, NCSL actively supports the concept of SRFs including reauthorization of the wastewater SRF at levels commensurate with state needs. Thus,

NCSL urges that:

o Congress and the Administration extend and fully fund the wastewater treatment SRF created in the reauthorization of the Clean Water Act of 1987;

o Congress appropriate full funding for non-point source pollution control as authorized by the Clean Water Act of 1987 and expand the provisions of this program to restore and protect our nation's waters;

o States be provided with increased flexibility in determining the most beneficial and cost-effective use of wastewater treatment dollars;

o Congress initiate an incentive program to encourage water conservation in the states;

o The limitation on use of loan monies for administration of the state revolving fund program be removed;

o EPA strengthen pretreatment pollution prevention requirements to reduce the amount of hazardous waste flowing to waters from wastewater treatment plants and from contaminated sludge;

o Congress require the EPA to promptly adopt nationwide discharge standards for point sources of pollution, excluding stormwater discharges and agricultural field run-off.

Drinking Water

In 1974, Congress passed the Safe Drinking Water Act (SDWA) which required EPA to establish drinking water standards and monitoring requirements to ensure Americans that public water systems deliver safe drinking water. States that met certain conditions including adopting national standards and enforcing compliance were granted the authority to administer their own programs.

In 1986, Congress amended the SDWA to accelerate EPA's standard-setting procedures and to establish a monitoring program. The U.S. Environmental Protection Agency was required to issue regulations for 83 contaminants in 3 years, and 25 new contaminants every three years thereafter. The 1986 amendments also required surface water to be disinfected and filtered, and groundwater to be disinfected. These amendments and the regulations issued to implement them have significantly increased responsibilities and hence compliance costs at the state and local public and private water systems level.

Federal funding assistance to the states for implementing and complying with the regulations of the SDWA have not been commensurate with the costs, and state budgetary shortfalls prevent states from compensating for the difference from their own resources. Small and mid-sized water systems are particularly hard hit because they do not have the rate base necessary to absorb highly prescriptive and expensive programs.

In the best interest of the public drinking water supply, NCSL urges Congress and the Administration to increase federal appropriations for safe drinking water programs to necessary levels. A special consideration for financial assistance should be given to those states that have communities and water systems that have limited resources to deal with the requirements of the SDWA. States should receive additional federal financial assistance in order to develop and maintain the administrative and technical capacity needed to implement the program's mandated objectives.

Furthermore, NCSL supports the following provisions:

o States should have maximum flexibility in administering their drinking water programs.

o States should have the authority to prioritize activities based on state public health needs.

o States should be able to use federal drinking water funds to consolidate public water systems when it is economically or environmentally beneficial, and/or in the best interest of the public health.

o Water systems should be able to use federal drinking water funds for land acquisition in order to facilitate infrastructure construction.

o In determining national standards for water quality, Congress should direct EPA to base its standards on scientifically sound principles for protection of human health. The ability of EPA to require water systems to test for additional contaminants must consider the human health risk posed by the contaminant. Congress must eliminate specific numbers goals for identification of new contaminants in drinking water. In lieu of such goals, Congress should adequately fund EPA's research efforts to develop scientifically sound standards which will assure safe drinking water for every citizen of this nation.

o EPA should be directed to work closely with primacy states in establishing a comprehensive program of water testing which recognizes the potential of contaminants based upon source, storage and delivery of water. Human health should be the basis for establishing any contaminant management program.

o Disapproval or withdrawal of primacy should not result in a decreased level of public health protection in that state.

o Congress should establish a safe drinking water state revolving fund (SRF) modeled after the wastewater treatment facilities SRF but including the following provisions:

o States should be able to transfer money between the wastewater treatment facilities SRF and drinking water SRF if they feel it is in the best interest of the public, or they should be able to combine the two SRFs if it is in the public's best interest.

o States should be able to extend the life of drinking water SRF loans as necessary to accommodate low-income communities provided the loan repayment period does not exceed the useful life of the project.

o States should be able to use the earnings on the interest of drinking water SRF monies for drinking water grant assistance to low-income communities, or for other drinking water related projects as determined by the individual state.

o States should be able to use at least 6-8% of drinking water SRF funds for administrative costs.

o State SRF match money, if required, should be waived for the first year. Current state funds used for safe drinking water purposes should qualify as matching funds.

Groundwater

The National Conference of State Legislatures is concerned with the growing incidence of groundwater contamination. Groundwater withdrawals have quadrupled since 1945 and today nearly one-half of the water used for human consumption in the United States is groundwater. In recent years, contamination of this precious resource has grown in alarming proportions.

NCSL believes that the federal government can work with states to ensure protection of groundwater supplies by providing a framework within which federal and state research, state and regional management techniques, and state regulatory initiatives can be shared across the nation.

NCSL believes that the development of groundwater policy should take into account or include the following:

o Historically, states have developed and implemented groundwater planning and management programs. State primacy must be important in the development of groundwater legislation but there is a need for federal coordination in interstate cooperation. Federal parameters for the protection of the quality of groundwater are needed.

o There needs to be federal assistance available to states in protecting wellhead/recharge areas from contamination.

o A coordinated approach allowing, where possible, for integration of existing federal, state and, where possible, local laws which regulate groundwater quality should be undertaken.

o A survey of state data collection and research needs should be completed to assess future needs for financial and technical assistance with respect to aquifer mapping, monitoring and classification.

o Groundwater policy should build upon existing federal and state laws and management techniques, but assure the protection of regional supplies and quality. Any policy should recognize the diversity of hydrologic, climatic, economic, legal, and social factors within various states and regions.

o Legislation should encourage the use of interstate compacts or agreements with respect to resolving interstate disputes regarding groundwater management.

o States should be accorded primacy in devising appropriate financing mechanisms for groundwater programs.

o A concerted water conservation program with appropriate financing should be developed jointly by the federal, state and local governments, but implemented by state and local governments.

o A comprehensive review of groundwater contamination from pesticides should be undertaken and recommendations based on this review should be implemented.

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Indian Water and Fishing Rights

In a growing number of states, Indian tribes have begun to claim their water and fishing rights, often after these resources have been appropriated for other uses under state law or federal reclamation projects. Because access to water and the fishery resource is vitally important in these states, a procedure for determining how to allocate these resources among the competing claims to limited supplies is crucial.

The National Conference of State Legislatures feels the following principles should guide any policy or actions regarding Indian water and fishing rights:

o Resolution of disputes between Indian and non-Indian users should be as fair and equitable as possible. The terms of settlement should consider the legitimate claims and the economic hardships that will be imposed on those who have legally obtained their rights, and also on those who have been denied full possession of their rights.

o Procedures should be flexible, to account for the variety of local needs, resources, claims, and relationships among users and claimants.

o Clarification of the extent of Indian rights to water and the fishery resource is necessary for sound water management, for allocation of these resources among competing uses and for planning future growth and development.

o Procedures for resolving Indian water and fishing rights disputes should encourage communication and cooperation among various users and seek to avoid further destructive confrontations.

Therefore, NCSL recommends:

o The extent and nature of Indian rights to water and the fishery resource should be quantified. Only when the amount of these resources that Indians are entitled to has been fully identified can resolution of the controversy proceed.

o Where conflicting claims to these resources occur because Indians claim prior rights to water or fish already appropriated, tribes, states and non-Indian users should seek to resolve the dispute through mediation, with federal participation as necessary to ensure that states and tribes arrive at an enforceable agreement. Procedures should be implemented, however, to coordinate the process of obtaining approval from Congress. Indian tribes interested in negotiating with states often encounter difficulty in identifying the appropriate state agency or official to meet with, as no single unit has authority to commit the state to provisions of a settlement. States should consider the creation of a single negotiating unit.

o Where mediation is unsuccessful in resolving disputed claims adjudication should be sought, with the ability to initiate adjudication in state courts.

o Federal legislation is needed to provide compensation by the federal government to all owners of legally determined water or fishing rights, if those rights are later altered or taken by the United States or Indian tribes, or if the exercise of those rights is precluded by action of the United States.

o In view of the extent of Indian rights to water and fishery resources, tribal governments should be directly represented on national, state, regional, and interstate water and fishing regulation and water and fishing policy planning bodies and commissions, including Interstate Company Commissions, Interbasin Commissions, River Basin Commissions, and others.

o As a tangible indicator of federal intentions to provide timely funding where treaties have been signed among Indians, state, local and federal governments, the federal government should immediately and fully fund authorized projects.

National Water Resources Policy

The national water policy which has evolved over the past 30 years exists today as a cumbersome and poorly coordinated effort to manage our nation's water resources. Jurisdiction for federal water projects is scattered throughout agencies of the federal government and committees of Congress. The National Conference of State Legislatures sees a need for clearer, more coordinated and more consistent federal policies. These policies, however, should recognize and build upon the constitutions, statutes, policies and programs of the states as the fundamental basis for a truly national effort toward better water resources management. The federal government should recognize that water resources policy can and must be developed at the state level. The appropriate role for the federal government should be to provide technical, research and financial assistance to the states at their request.

Historically, the states have developed water resources management programs through legislative action, judicial deliberations and financial contributions. Therefore, the primacy of the states' role deserves special recognition in federal policy and the states should have the policymaking prerogative. An effective state-federal partnership cannot be expected to result from a revision of federal policies unless states are given the opportunity to review and develop their own.

However, the nature of federal activities in water resources management, involving direct actions by federal agencies, an array of narrow categorical grant programs for specific management purposes, and a similar range of regulatory programs, has been a major barrier to comprehensive management and appropriate action at the state, local and interstate levels.

NCSL believes that there must be more concerted attention to the need for water conservation, both within and between federal and state governments, to the planning and implementation of water resources development and to water quality improvement. If adequate supplies of this precious resource are to be ensured for future generations, there is doubtless much in current practice and policy that must be improved.

NCSL endorses the following principles:

o The states have the primary authority and responsibility for water resources management. Primary authority and responsibility for water resources management functions, including planning, development and regulation, rest with the states and their delegated interstate agencies. Water resources management, wetland protection, coastal zone management, and soil conservation projects should be clearly delineated by Congress as the primary responsibility of the state and their delegated interstate agencies, with federal oversight.

o A national water conservation initiative should be undertaken to encourage water conservation at the federal, state and local levels. Functions such as navigation and flood control and other issues at the prerogative of the state should continue to be shared with the federal government to the degree appropriate. Federal policy must recognize and respect the rights of the states to administer their individual water laws and to manage their water resources.

o The role of the federal government is four-fold: (1) to establish a framework of national objectives developed in cooperation with the states; (2) to provide assistance to the states in the development of programs to meet state needs within such a framework; (3) to be consistent with such state programs to the maximum extent possible when undertaking direct federal actions pursuant to the national interest; and (4) to coordinate agency activities through a national coordinating entity reporting directly to the President and with provision for adequate state and public input.

The responsibility of the federal government is to establish, in full cooperation with states and other appropriate interests, national objectives for the protection, management, restoration, development, and use of water and related resources to meet national economic, environmental and social objectives and to assist in implementing such policies in federal actions and through assistance and support for state actions.

The essential steps toward orderly, efficient and balanced water resources management are to recognize the primary responsibility of the state and to put each state in the position to secure, in cooperation with local governments, coherent water management strategies.

Federal policy should be directed toward strengthening the capacity of the state to act as the integrator and manager of all programs affecting the water resources of the state. To do so effectively, states need:

o Realistic and dependable financial support to integrate management activities through expansion of provisions for state assistance;

o Full funding of authorized programs consistent with congressional intent;

o Capable technical assistance, at state request, from federal agencies such as the U.S. Environmental Protection Agency, Soil Conservation Service (SCS), the Bureau of Land Management, the Corps of Engineers, or the Bureau of Reclamation, possessing extensively developed expertise;

o Additional research assistance, at state request, (for example, the water resources research centers established under the Water Resources Act of 1964, or similar legislation) and information on water conserving devices; and

o Assurance that direct federal actions will be consistent with state programs, responsive to national policy, and carefully evaluated against mutually agreed upon standards.

o There must be continuity in federal support for water management programs. Effective scheduling of local and state government appropriation processes and personnel recruitment is made extremely difficult by sharp variations in federal funding levels and by the failure to fully fund authorized programs.

o Federal actions must be consistent with adopted state and interstate water and related resources plans and programs. A major frustration among regional, state and local water resources decision makers is the problem of securing consistency of federal projects with federally-assisted water planning programs.

o There must be greater flexibility in the entire federal support system for water resource planning and management.

o Federal project evaluation, planning, financing, cost sharing, and cost recovery policies should be reviewed and simplified.

o Project evaluation should promote equal consideration of both structural and non-structural solutions.

Existing federal policies present a bewildering array of planning, evaluation, financing, cost sharing, and cost recovery options for direct federal and federally-assisted water projects and programs. Inequities exist among those who pay for and those who benefit from such projects and programs. Moreover, many existing programs create inherent financial biases which favor certain solutions to water problems over others, sometimes resulting in the approval of programs of only marginal utility. Accordingly, NCSL urges that:

o Cost-sharing policies should be consistent among alternative means for achieving the same purpose. This means uniformity among cost sharing policies for both structural and non-structural alternative solutions to a problem under existing agency authorities and broadening some agency authorities to permit consideration of more alternatives.

o Cost sharing policies should be consistent among federal agencies for the same purposes. There should be no financial grounds for non-federal participants to "shop around" for the best deal.

o The public participation requirements of project planning and evaluation criteria should be aggressively carried out.

o Water conservation must be a fundamental consideration in all future

o A national water conservation initiative implemented by the states as a part of their total water management programs with federal financial and technical assistance including a water management programs.

A national water conservation initiative reflecting regional variations, as defined below, must be the cornerstone of national water policy. Water conservation involves the more efficient use of water in: (1) day-to-day uses; (2) resources allocation including conjunctive uses; (3) drought response; and (4) effective use of seasonal water including storage where necessary. National policy must be flexible enough to accommodate both environmental and economic differences which may vary region by region.

Accordingly, NCSL recommends: component for evaluation of the true benefits and costs of conservation;

o Encouraging comprehensive management of intermittently available freshwater resources to maximize the availability of surface and groundwater supplies;

o Examining closely the incentives and disincentives for encouraging conservation, recycling and reuse of water; and

o Examining and promoting where feasible the practices of conjunctive use of water supplies.

The federal government currently supports a wide variety of water research programs, both through the individual federal water agencies and through the state water resources research centers created under the Water Resources Research Act of 1964 and coordinated by the Bureau of Reclamation in the Department of Interior. Through those vehicles, important research has been conducted in all phases of water management. However, little coordination exists among these programs and no specific mechanism exists which can focus the water research establishment on the planning and management concerns of the nation's principal water managers---the states.

NCSL recommends that:

o At the federal levels, there should be greater coordination among the many mission oriented federal agency research programs by tying them more closely to a national coordination entity; and

o At the state and regional level, require that the research agenda of both the federal agencies and the federally-supported water resources research centers can be developed in conjunction with the expressed research needs of the state.

o Congress should recognize state primacy over all water rights within each state's boundaries and bring to closure the debate on the Federal Reserve Water Rights Policy.

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Wetlands

Wetlands are an integral and indispensable component of both the environmental and economic health of the nation. They provide critical habitat for a broad range of fish, wildlife, and invertebrate species. One-third of the species listed as threatened or endangered depend on wetlands for their survival.

At the same time, they offer important economic and recreational benefits such as hunting and fishing. Wetlands provide resting and feeding points for millions of migratory waterfowl along the four major American flyways, and are of both direct and indirect importance to the nation's annual commercial fish catch.

Wetlands also provide numerous other overlapping environmental and economic benefits, including natural flood control, reduced shoreline erosion, recharged groundwater, and water purification through filtration of sediments and toxic pollutants from runoff.

Nonetheless, widespread recognition of these benefits is relatively recent. Wetlands have historically been viewed as impediments to progress -- swamps to be drained or filled. As a result, the nation has lost more than half its native wetlands. During the past decade, wetlands losses have approached 300,000 acres per year.

Public and private efforts to stop these conversions have generally been uncoordinated, unfocused, and ineffective. There has been some duplicative effort and inconsistency. The existing programs also leave major gaps in the overall protection effort.

NCSL recognizes the need to protect the nation's remaining wetlands to fill those gaps in protection programs and to expand current regulatory and non-regulatory programs at all levels of government. However, in arid states that are hampered in their water development, other states with historically low wetlands loss or high percentage of usable land classified as wetlands, there may be the need for flexibility in the regulation and management of water development and wetlands policy.

NCSL calls for a no-net loss of wetlands through a consistent yet flexible national policy and urges that:

o The President and the Congress should establish the national goal of eliminating the net loss of both wetlands acreage and wetlands habitat values, as a result of any activities, and of increasing both wetlands acreage and wetlands habitat values. The President and the Congress should promptly adopt policies and regulatory reforms to achieve this no-net loss goal.

o Congress should establish wetlands protection, restoration and creation as part of the mission of the Environmental Protection Agency, the Corps of Engineers, the Bureau of Reclamation, the Soil Conservation Service, the Federal Highway Administration, the Tennessee Valley Authority, and other appropriate federal agencies. These agencies should coordinate efforts to assure a comprehensive, non-duplicative wetlands program. Congress should consider the designation of a single federal agency to be responsible for the development, implementation, and enforcement of a national wetlands program.

o Congress should facilitate the delegation of wetlands protection programs to the states to achieve no-net loss of wetlands with strong regulatory programs by allowing these states to regulate all wetlands within their borders and by providing technical resources to assist states in developing and operating their programs.

o Congress should establish a clear preferred sequence of mitigation options that begins with avoidance of adverse effects on wetlands followed by a reduction of unavoidable adverse effects, and allowing compensation by creating, replacing or restoring other on-site or off-site wetlands areas, only as a last resort.

o Congress should recognize that private landowners have an economic stake in wetlands resources and establish a strong program of economic incentives that encourages and assists the private sector to exercise its management responsibilities in a way that will protect the public values wetlands provide while contributing to a reasonable return on its investment.

o The President should reaffirm Presidential Executive Orders 11990 ("Protection of Wetlands") and 11988 ("Floodplain Protection"), both issued in May 1977, as viable and valuable adjuncts to the establishment of a nationwide wetlands policy.

o All federal land-holding agencies should, in cooperation with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service, undertake a full inventory of the wetlands on their lands and develop a management plan that will ensure the continued protection and enhancement of these areas. These agencies should also evaluate the possibility of establishing further beneficial wetland acreage, when economically feasible, and act to develop a coordinated inventory, mapping, and reporting system that is useful to the regulated community and that has been carefully verified on the ground.

o Federal agencies with responsibility for wetlands regulation and management should initiate a National Wetlands Research Program to improve methods for assessing wetlands functions and values, to assess cumulative impacts, to study the effectiveness of protection programs, and to study wetlands restoration and creation techniques.

o Federal agencies should work closely together, and with states and the private sector, to integrate wetlands protection programs with state and local comprehensive planning processes. The process should emphasize advance identification of wetlands, assess the role and importance of wetlands including the land and water on which wetland depend, consider the economic and ecological benefits of wetlands, explore the compatibility of different uses, and integrate wetlands protection with other social goals.

o Federal and state regulators, with the cooperation of the private sector, should have sufficient flexibility to select the options that best protect the balance of needs of the wetlands resource while ensuring environmentally sound and predictable regulatory programs.

o The current efforts to re-define and change the definition of wetlands are confusing to regulators, the states, private landowners and local governments and should end. Present definitions, as adopted in 1987 for the Army Corps of Engineers, should be the baseline of the no-net loss policy. This policy shall be revisited upon release of the proposed wetland study of the National Academy of Science.

o Federal agencies, in conjunction with states, the private sector, and nonprofit groups should expand their education and outreach programs to inform the public and landowners about the location of wetlands, the values wetlands provide, the regulations governing their use, and the existence of financial incentives and other options available to protect and enhance them.

o The U.S. Army Corps of Engineers and the Environmental Protection Agency should agree on strategies for effectively monitoring, verifying, and enforcing permits authorizing activities in wetlands. In addition, the U.S. Department of Justice and other regulatory authorities should take any necessary action, including amending existing regulations, to prevent the willful altercation of wetlands characteristics to circumvent regulatory jurisdictions.

o If states are to be encouraged to oversee the wetlands permitting process, they should be provided adequate federal financial and technical assistance.

Agricultural Wetlands

o Given the existing maze of regulations and agencies with jurisdiction over agricultural wetlands, the federal government should consolidate all regulations under one agency and provide for the delegation of such wetlands authority. Because the present system of federal agricultural wetlands regulation is burdensome and confusing, primacy should be made available to the states. Regulation of agricultural wetlands should only occur in the context of an overall farm conservation plan.

July 1995

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ENERGY AND TRANSPORTATION AND ENVIRONMENT

NATIONAL ENERGY

The National Conference of State Legislatures urges the federal government to develop, implement and maintain an expansive, integrated, environmentally-sensitive and cost-effective national energy policy. The NCSL recognizes the efforts of the federal government in the development and implementation, to date, of the National Energy Strategy, and encourages its continued implementation, development of a follow-up version of the NES, and adoption of comprehensive energy legislation by Congress.

The primary goals of a national energy policy should be to provide for the most efficient use of energy, to promote reliable sources of domestic energy supplies, to develop a comprehensive energy conservation strategy and to develop and promote the use of alternative, renewable energy sources. A national energy policy should ensure adequate supplies of affordably priced energy. A national energy policy should ensure the use of energy in an efficient and environmentally-sound manner so that the needs of our citizens, economy and national security interests are met. Energy independence shall be the long term goal of the United States. A balanced mix of energy sources is essential to the security and the future economic growth of the United States. It is also imperative that a national energy policy account for the effect of the use of each fuel source on the environment.

Principles

Those principles which NCSL believes ought to guide the development and implementation of a national energy policy include:

o Promotion of the most efficient and economical use of all energy resources.

o Promotion and provision of incentives for the development and optimal use of all energy resources.

o Assurance that various domestic energy sources are continually developed, maintained and stored to prevent supply emergencies and to preserve the nation's independence.

o Consideration and assessment of environmental costs and benefits for all energy resources, fuels and technologies in rendering legislative, regulatory and market decisions regarding energy production and use.

o Provision of an affordable energy supply for all citizens.

o Specification and balancing of clear lines of local, state and federal regulatory authority.

o Development of both short - and long-term strategies to provide adequate energy supplies, efficient utilization of those supplies and optimum cost effectiveness.

o Promotion of the education of school-age children regarding energy resources, consumption and production and regarding environmental protection, safety and risks in energy production.

o Assurance of expanded energy research and development and broadening of the citizenry's access to energy-related information.

o Assurance of participation of state and local officials in the development and implementation of a national energy plan and strategy.

o Avoidance of mandates, particularly unfunded mandates, upon state and local governments in order to effect a national energy policy.

Promotion of energy conservation and efficiency and the development and use of alternative and renewable energy supplies.

Implementation

The development of environmentally-sound energy conservation and efficient supply and distribution systems requires long range planning, least-cost planning, and sustained efforts. The immediate establishment and implementation of a national energy strategy, as recommended in this document and further discussed and supported in existing NCSL policies, will assure that the future energy needs of American citizens, the United States economy and national security interests are met in an efficient and environmentally sound manner.

Development of a national energy strategy should have at least these six principal steps: (1) a forecast and assessment of our nation's energy future and its impacts; (2) an evaluation and ranking of short and long-term energy options available to the nation; (3) an evaluation of possible energy futures which provide greater benefits to our citizens, based upon the options ranked above; (4) development of recommendations for energy options and energy futures that the nation should pursue, with the establishment of national targets or goals; (5) evaluation and recommendation of implementation mechanisms including, but not limited to, incentives, technical assistance, educational programs, regulatory standards or guidelines to achieve the targets or goals; and (6) coordination of federal and state components, responsibilities, and authority.

The U.S. Department of Energy (DOE) should rank the energy options available to the nation. The options should be grouped by end use and not by specific fuels or efficiency improvements. The ranking of each option within a group shall reflect the market and nonmarket costs of energy saved or delivered, the relative degree of uncertainty and risk exposure, and the compatibility of each option with other national goals. Ranking should be periodically revised to reflect changes over time. Any ranking and any energy policy should include the long-term environmental impacts.

In choosing among energy policy alternatives, a cost-benefit approach should be applied in which the full long-term costs of an option in taxes, consumer energy bills, environmental impacts, security risks, and other national goals are weighed against the additional availability or conservation of energy and other long-term benefits it might be expected to generate.

Those measures involving the lowest costs, in terms of public expenditures, revenue losses, costs to consumers, and environmental or other impacts, should be considered first. Energy policy alternatives that would improve our energy security and reliability without imposing significant new costs, while balancing the need for environmental protection, should be implemented. Although the potential costs and benefits of a given proposal can be extremely difficult to estimate, this framework is valuable in setting consistent terms of debate for our various energy policy choices both now and in the future.

An effective national energy policy must include carefully coordinated federal and state components. The responsibility for developing the state components rests principally with the legislatures. Channels of communication between state legislatures and the federal government must be strengthened. In the development of a national energy policy, the federal government shall consult closely with state legislatures, shall devise mechanisms to bring state legislatures as full participants into the energy decision-making process on a continuing basis, and shall ensure the inclusion of representatives of the legislative branch of state government in all state-federal working groups in the energy area.

Conservation and Energy Efficiency

Increased energy efficiency and conservation should be considered as primary sources of energy, since both are practical, cost-efficient and essential for addressing future energy needs. Increased efficiency will decrease our reliance on imported oil, reduce the environmental impacts of fossil fuels, reduce the long-term operating costs of U.S. industries thus improving their competitiveness, slow the depletion of our finite fossil fuels and extend the time we have to make the transition to new and innovative energy technologies. Environmental concerns associated with energy policy choices can be accomplished most effectively by improving the efficiency of this nation's energy use and by making sure that choices among fuels and energy products and services reflect their true environmental costs. This principle shall apply to imported energy as well as domestic energy.

It shall be part of the energy strategy of the United States to promote energy efficiency in a variety of ways including setting or strengthening as technologies improve: Corporate Average Fuel Economy Standards for automobiles; energy efficiency provisions in building codes (including lighting efficiency standards and weatherization); home appliance and heating and cooling unit efficiency standards; waste recycling and reduction standards for industrial manufacturing; standards for conservation in electrical production and supply including cogeneration, and use of alternative energy; and a national transportation policy, emphasizing various forms of mass transit, that promotes energy efficiency. These measures impose costs as well as provide benefits and should be evaluated for adoption along the lines outlined in the implementation section. Programs must be cooperatively developed and implemented by the states and federal government working together as full partners, and should consider incentives to promote and encourage energy efficiency and development of cost-effective energy resources.

States should continue to have the authority to establish incentives for consumers to purchase automobiles with improved energy efficiency of motor vehicles including, but not limited to; (a) efficient vehicle purchase incentives, such as gas guzzler taxes and feebates (fees and rebates linked to improved fuel economy or emissions); (b) public and private fleet procurement guidelines and incentives that favor efficient vehicles; (c) other consumer incentives for efficiency, such as "pay as you drive" automobile insurance.

Also, the federal government shall promote energy conservation education and fund research into conservation technologies. Federal funding of energy conservation programs, including grants to states, should be enhanced.

The government's leadership role in the purchase and use of new energy efficient technologies and products shall be expanded, and all government-owned buildings shall make use of economical energy conservation programs.

In addition to the energy conservation program called for above, additional policies should be adopted, including the following:

Research and Development -- Priority should be given to the renewable energy resources for the long-term and to the conservation and conversion from existing fossil fuel resources in the short-term. Basic energy conservation research funded by the government shall include superconductivity studies.

Energy from Solid and Liquid Waste -- The conversion of solid and liquid waste after all recyclable and reusable materials are removed can make a contribution to our energy supply. A resource recovery program which utilizes the waste stream should be encouraged where economically and environmentally feasible for this purpose provided that problems with air emissions and ash residue are resolved.

Architecture -- Use and design of innovative building technologies, including building orientation, that enhance conservation and efficient energy usage shall be promoted.

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Renewable Energy

Renewable energy sources are characterized by a broad range of technologies, costs, efficiencies and environmental concerns. Renewable energy sources include, but are not limited to, geothermal, hydropower, biomass, wind, photovoltaics and solar. Recognizing this spectrum of resources, the federal government should institute a long range, stable Renewable Energy Development Program which identifies and assists renewable energy sources from research and development through demonstration projects and commercialization in a cooperative effort among industry, higher education, and national laboratories.

Renewable energy resource development must be ranked and funded on the basis of factors including energy efficiency, economic competitiveness, environmental impacts, and technological adaptability. Part of this program, and critical to its success, is federal development of alternative technologies that improve renewable energy efficiencies, cut costs, and assist in integrating renewable energy into existing energy systems. Also needed is a translation and distribution system for international technical and marketing papers on renewable energy. The U.S. should strive to become a world leader in the use of renewable energy resources.

Energy Emergency Preparedness

The federal government should support and enhance energy emergency preparedness in order to reduce the potential impact of petroleum supply disruptions. Initial efforts should focus on strategies to prevent emergencies from occurring. Such programs shall give consideration to existing state laws and programs, and state and local officials shall be included in the federal planning process.

The national energy emergency preparedness program shall include the following principles: voluntary conservation is preferred to mandatory measures wherever possible; any mandatory response should be phased in, beginning with the least stringent measures, with gasoline rationing reserved for only the most severe shortage; and to minimize undue hardships on states and regions heavily dependent on motor vehicle transportation, rationing allotments and allocation plans should be based on state and regional needs and strategies rather than on national averages. Priority shall be given to home heating needs including home heating oil and propane, provided homes are adequately insulated.

It is essential that emergency response procedures be thoroughly and carefully tested to ensure the coordination and flow of information between energy suppliers, consumers, and federal, state and local governments. Maintenance and operation of the Strategic Petroleum Reserve (SPR) is essential to any national energy emergency preparedness plan. The federal government should fill the SPR to its authorized level. There should be continued refinement of the timely sales process for SPR oil and the continued regular testing of the SPR sales mechanism and physical drawdown capabilities. Where necessary, regional rotating product stocks or other mechanism to ensure regional availability of supplies should be established. Fuel switching capability for large energy users to reduce dependence upon a single fuel source should be encouraged.

Section 7(d) of the Export Administration Act of 1979, 50 U.S.C.S. Appx. 2406(d), generally prohibits the export of domestically produced crude oil transported by pipeline over the right-of-way granted by sec. 203 of the Trans-Alaska Pipeline Authorization Act, 43 U.S.C. 1652.

This restriction affects the value of the domestic crude oil produced from Alaska North Slope reserves, reduces the market value of the oil in Alaska and on the west coast of the United States, increases the oil's market transportation costs, reduces tax revenues collected by these states and their local governments, lessens oil industry employment, discourages the exploration for and development of additional domestic crude oil reserves, and otherwise diminishes the nation's energy independence and economic activity.

A recent study by the United States Department of Energy finds that elimination of the restriction on export of Alaska North Slope crude oil would create thousands of jobs, significantly increase government revenue, reduce the trade deficit with Japan, and cause no harm to the environment, all with minimal, if any, effect on gasoline prices paid by consumers.

The United States Congress has under consideration reauthorization of the Export Administration Act. Lifting the restriction on the export of Alaska North Slope crude oil would result in a number of immediate and long-term economic benefits to the nation and the affected states.

The National Conference of State Legislatures therefore opposes the continuing restriction on export of Alaska North Slope crude oil and urges the United States Congress, as part of its reauthorization of the Export Administration Act, to eliminate from the Act the provision restricting the export of Alaska North Slope crude oil, recognizing that the President can restrict the export of any commodity, if necessary, during a national emergency.

Crude Oil

The federal government should promote the environmentally-sound production of domestic energy resources in coordination with the conservation and efficient use of energy resources, and the management of energy imports.

The federal government should promote and encourage domestic production of crude oil in an environmentally sound manner in order to supply United States consumers with a secure source of petroleum, and provide a stabilizing influence to the world price of crude oil. Since domestic production is declining rapidly, the efficient use and conservation of these resources must be encouraged. Also, the extraction and transportation of crude oil must be done only with full safeguards for the protection of the environment. In this regard, the federal government should consider incentives for domestic exploration, maintenance of stripper wells, but excluding other extractions, and technological research for methods of enhanced oil and gas recovery that are environmentally safe and in accordance with state policy.

The federal government should ensure that energy resources are utilized in a manner that recovers the most energy value possible while assuring full protection of the environment. Similarly, it should be the strategy of the United States to alleviate oil dependency by funding research and development to perfect alternative fuels, particularly for the transportation sector and primary modes of personal transportation. Enhanced oil and gas recovery from known reserves should be promoted in an environmentally sound manner.

The federal government should manage United States imports by diversifying import suppliers, pursuing a Pan American Energy Alliance with Western Hemisphere producing nations, and opening a dialogue with suppliers worldwide.

Coal

Coal is America's leading fossil fuel in reserve. Coal holds the promise of long-term energy security for this nation. Resources of coal can be properly utilized only if we develop a technology to burn coal more cleanly, and efficiently. Because coal consumption produces carbon dioxide, conservation and efficiency must be emphasized. Mined lands should be reclaimed to an environmentally appropriate state.

It should be the goal of the United States to provide continued support for the Clean Coal Technology Program, in partnership with the private sector. Research and technology development in clean coal usage should include work in precombustion, combustion, post-combustion, and coal conversion areas with desulfurization efforts a top priority. The United States should jointly address transboundary environmental problems with its neighbor Canada. A resolution on the issue of acid rain must be reached soon and should take into account the findings of the National Acid Precipitation Assessment Program (NAPAP), the National Academy of Sciences (NAS) and other recent scientific reports. Programs should be designed to reduce the amount of sulfur dioxides by at least 50% and to reduce nitrogen oxides emitted into the air from coal burning. The solution should promote the utilization of clean coal technologies and balance costs to our environment and health with potential impacts upon the economy and costs to electricity consumers.

Since gas generated from coal can be distributed through existing pipeline systems, and since the delivery of coal in a conventional form will require extensive capital investment in plant conversion and rail transportation, coal gasification should be seriously considered as an alternative to the use of coal in a conventional manner.

The effects on local infrastructure needs and the costs of prime farmland protection and land reclamation shall be considered in the development of a national coal program. Financing of activities under the abandoned mine reclamation fund shall be accelerated, and a federal commitment to reclamation shall be strengthened. No federal policy having implications for land development or management should be adopted without accommodating the laws and views of affected states.

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Natural Gas

It should be part of the strategy of the United States to include the use of clean, efficient natural gas. It should be used in a manner that sustains long-run availability. This should include the co-firing of natural gas with other fuels for efficiency or environmental purposes. Natural gas is a fuel that can be depended upon over the long term. Based on our history of exploration and the current levels of consumption, EIA sources indicate there to be at least 70 years worth of gas available for U.S. consumption. Proven reserves account for 11 years of supply.

The United States should encourage domestic production of natural gas in an environmentally sound manner. Further, the federal government should complete price deregulation by 1993 as provided in current law.

The Federal Energy Regulatory Commission should expedite decisions regarding pipeline construction serving the oil-dependent markets and should be encouraged to provide access by interconnecting pipelines to producing areas of this nation. Both producers and users of natural gas benefit from orderly transportation programs which provide competition and reliable supplies of natural gas at the lowest possible cost. The Federal Energy Regulatory Commission should take steps, to the extent the Natural Gas Act and the Natural Gas Policy Act allow, to remove the disincentives for natural gas pipelines to provide voluntary transportation of natural gas for others, and should immediately take such actions as may be necessary to provide final take-or-pay relief in the natural gas marketplace.

The federal government should fund continuing research and evaluation relative to the environmentally sound production and use of natural gas, in order to conserve energy by improving efficiency and should promote development of alternative vehicular fuels.