House Subcommittee Approves Transportation Spending Bill

Earlier today, the U.S. House Subcommittee on Transportation-HUD Appropriations approved its FY 2009 spending measure providing a total of $108.3 billion for those agencies.  Full details of legislation are not yet available.  The full House Appropriations Committee will take up the bill after the July 4 recess.

The legislation provides $40.198 billion for the federal-aid highway program, the amount authorized under the SAFETEA-LU law.  The total includes the automatic reduction of $1.001 billion caused by the revenue budget authority (RABA) provision of SAFETEA-LU reflecting lower-than-expected fuel tax receipts.  Total federal-aid highway funding is $800 million more than the President’s budget request.

Under the legislation, the Airport Improvement Program is funded at $3.514 billion, the same level appropriated in FY 2008 and $765 million above the President’s request.

Contact David Hubbard or Jerry Voigt.

Mine Safety, Health Administration Continues Hiring  

With the Mine Safety and Health Administration’s (MSHA’s) objective of meeting its statutory obligation to inspect underground mining facilities four times annually and surface facilities two times annually, the agency has been increasing its field inspector ranks in the two years since the Mine Improvement and New Emergency Response Act, or MINER Act of 2006 became law. 

In the metal/nonmetal sector, which regulates the cement industry among others, MSHA has hired an additional 100 inspectors since 2006.   More coal inspectors have been hired as well.  The agency is also hiring administratively by bringing in conference officers and attorneys to respond to the significant rise in contested citations and the increase in civil cases. 

The MINER Act amended the 1977 Federal Mine Safety and Health Act by creating new requirements, particularly for the coal sector.  Most notably for cement manufacturers, though, the MINER Act required the Secretary of Labor to revise the penalty tables by increasing assessment fines, to create a new “flagrant” violation category with a $220,000 maximum penalty, and to require a minimum penalty of $5,000 and maximum of $60,000 to be assessed for failing to notify MSHA within 15 minutes when an accident occurs that has a reasonable potential to cause death.

Contact Tom Harman.

Official Holds Press Conference on Second Anniversary of Mine Safety, Health Act

Assistant Secretary of Labor for Mine Safety and Health Richard Stickler held a press conference Monday to communicate Mine Safety and Health Administration’s work at implementing the requirements of the MINER Act of 2006.  The MINER Act was signed by President Bush on June 16, 2006. 

While communicating the agency’s work at implementing the MINER Act, Stickler also stated that that more enforcement actions will be issued by the agency in 2008 than in any prior year.  He estimated approximately 180,000 this year alone. 

Stickler also mentioned that “unwarrantable” failure violations have greatly increased this year, and that the third round of letters has been sent to notify operators they are at risk of being issued a Section 104(e) order, or the so-called “Pattern of Violations” order to withdraw. 

Contact Tom Harman.

Steelmaker, Unions Sign Agreement for Safer Operations

AcelorMittal, the world’s largest steelmaker, signed an agreement with several unions representing employees to improve health and safety standards throughout the company.  The unions include the United Steelworkers, the European Metalworkers’ Federation, and the International Metalworkers’ Federation. 

The agreement establishes safety and health expectations at company sites and includes joint company/union health and safety committees.  Perhaps most significant, the agreement requires employee education and training programs to begin immediately for the purpose of addressing safety and health issues across company sites.
 
Contact Tom Harman.

Congress Forms the High Performance Building Caucus

The High Performance Buildings Congressional Caucus, led by co-chairs Reps. Russ Carnahan (D-Mo.) and Judy Biggert (R-Ill.) , wants to provide policymakers with information on how to design, build, and operate better-functioning buildings.

"Today's high-performance buildings are the exception, not the rule," Biggert said in her opening remarks. "Russ and I want to find creative ways to change that."

The Energy Policy Act of 2005 (EPact 05) directed a report on what is a high-performance building and what the barriers are that need to be overcome..  There are eight critical elements in a high performance building:  energy efficiency, sustainability, accessibility, worker productivity, aesthetics, cost-effectiveness, durability, historic preservation and safety and security. These buildings would be code plus structures in that they would exceed existing requirements of building codes and specifications

In addition to the establishment of the High Performance Building Caucus, a High Performance Building Council has been established within the National Institute of Building Science.

Contact John Sullivan.

Appeals Board Asks for Clarification of Arguments for Power Plant Emissions

The Environmental Appeals Board (EAB) asked the U.S. Environmental Protection Agency (EPA) on Monday to clarify its position on whether it can enforce certain Clean Air Act provisions to require power plants to monitor for emissions of carbon dioxide (In re Deseret Power Electric Cooperative, order issued June 16).

The EAB ordered the agency to say whether carbon dioxide monitoring requirements for power plants are enforceable under Clean Air Act Sections 112 and 412, or under any other laws.

The order came as the board sought to clarify statements EPA made in oral arguments in a case that could result in the agency having to consider greenhouse gas emissions when granting permits to new power plants. A decision against EPA could subject power plants and a wide range of other sources to carbon dioxide emissions controls.

At issue is the question of whether EPA should have considered carbon dioxide before granting a prevention of significant deterioration (PSD) permit for a new coal-fired generating unit proposed by Deseret Power Electric Cooperative at the company's plant near Bonanza, Utah.

The Sierra Club is challenging a permit granted by EPA Region 8 to Deseret for the new generating unit at the Bonanza plant. The Sierra Club said EPA is required by the Clean Air Act to consider the new generator's carbon dioxide emissions before granting a permit under the act's PSD program.

Subjecting carbon dioxide to PSD requirements would mean that whenever a power plant or other facility made a modification, it would be required to undertake action to limit carbon dioxide.

Contact Deidra Ciriello.

House Subcommittee Explores Five Climate Change Bills

The U.S. House of Representatives’ Energy & Commerce Subcommittee on Energy & Air Quality held a hearing on Thursday to review legislative proposals aimed at reducing greenhouse gas emissions, specifically five bills sponsored by Congressman Edward Markey (D-Mass.); Congressman Henry Waxman (D-Calif.); Senate Energy & Natural Resources Committee Chairman Jeff Bingaman (D-N.M.); Sen. Arlen Specter (R-Pa.); Sen. John Warner (R-Va.) and Joe Lieberman (I/D-Conn.); and U.S. Senate Environment and Public Work Committee Chair Barbara Boxer (D. Calif.). 

While Republican members on the committee were not convinced that a cap and trade system is the most efficient way to reduce greenhouse gas emissions, members from both parties agreed on the importance of the research and deployment of new technologies and the continued need of coal as a primary energy source. 
 
Fifteen witnesses participated in the hearing representing a variety of industries, environmental groups, labor unions, and other interests.  Witnesses from the National Mining Association, the United Auto Workers, and the AFL-CIO all expressed support for the Bingaman Specter bill due to the inclusion of a safety valve, and less stringent timelines and reduction goals. 

The subcommittee will hold several more hearings, including one next week on the cost of inaction to address global warming, in anticipation of the introduction of a comprehensive bill from committee U.S. House Energy and Commerce Committee Chair John Dingell (D-Mich.) and Subcommittee Chairman . Rick Boucher (D-Va.) before the end of the year.  

Contact Jessica Hogle.

Highway Trust Fund Insolvency Fix

Faced with an anticipated reduction of as much as 34 percent in transportation infrastructure project funding in fiscal year (FY) 2009, Senate Finance Committee leaders have drafted a proposal to circumvent a Highway Trust Fund (HTF) shortfall.

The scheme would provide an $8 billion transfer from the general fund of the Treasury to the Highway Trust Fund. In essence the plan functions as a crediting from the general fund back to the Highway Trust Fund of moneys that were originally transferred from the general fund to the Highway Trust Fund under the passage of TEA21 in 1998.  As a result, the $8 billion transfer would not require any offsetting tax increases.

Due to the ensuing HTF crisis and considering no offsets would be required under the proposal, it is hoped that that the fix will be approved by unanimous consent when taken up by the full Senate.

Contact  Robert Sullivan or Leif Wathne.

Senate Debates Housing Stimulus

The U.S. Senate yesterday began debate on a substitute amendment to H.R. 3221, The Foreclosure Prevention Act of 2008, a measure designed to reinvigorate the flagging housing market.

The substitute amendment, introduced by Senate Banking, Housing and Urban Affairs Committee Chairman, Senator Chris Dodd (D-Conn.) AND Ranking Member Richard Shelby (R-Ala.), would allow the Federal Housing Administration (FHA) to insure $300 billion worth of at-risk mortgages after lenders or holders of troubled mortgages agreed to write-down those mortgages. The bill would also set the Fannie May and Freddie Mac loan limits at $625,000.

The measure would provide $4 billion in Community Development Block Grant Funds to purchase and rehabilitate foreclosed homes. Also, property owners who do not itemize on their tax returns would be allowed to claim a deduction for their state and local property taxes and first time home buyers would receive a tax credit of $8,000.

Senator Christopher “Kit” Bond (R-Mo.) unsuccessfully offered two amendments one of which aimed to strike the FHA insurance provision contained in the bill.

The Senate substitute has received a White House veto threat, but is expected to pass when it comes up for a vote next week.

Contact Kevin Walgenbach.

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