... TAXES & TAXATION

Explosives Tax Not Included in Senate Spending Bill

The Senate Appropriations Committee approved its FY 2007 Commerce, Justice and Science funding bill on Thursday without attaching a tax on explosives.

Several weeks ago the House struck a provision levying a half-cent-per-pound tax on explosives from the House version of the spending bill. The Administration's FY 2007 budget request provided for a two-cent-per-pound tax on explosives in order to finance a proposed funding increase for the Bureau of Alcohol Tobacco and Firearms.

The action by the Senate Appropriations Committee this week virtually kills the possibility of an explosives tax in FY 2007. PCA opposed the tax and worked with other associations to have the tax provision removed from the appropriations bills.

For more information, contact: David Hubbard or John Shaw.

Senate Panel Holds Hearing on Proposed Revisions to Particulate Matter Standards; PCA Meets with EPA Administrator

The U.S. Senate Committee on Environment and Public Works Subcommittee on Clean Air, Climate Change, and Nuclear Safety held a hearing this week on the U.S. Environmental Protection Agency's (EPA) proposed revisions to the particulate matter air quality standards.

Congress hopes to weigh in on the rulemaking as EPA puts the finishing touches on the final rule language. The Subcommittee Chairman, Senator George Voinovich (R-Ohio), was joined by the full Committee Chairman, Senator James Inhofe (R-Okla.), who announced a full committee hearing on the scientific side of these proposals.

The hearing was held to examine the severe economic impact such a revision of these standards would have on the economy, especially on communities who will be placed in attainment areas. Also of concern is "moving the goal posts" for communities that have been working to meet the last set of requirements.

Republican Senators attending, in addition to Sen. Inhofe and Voinovich, included: Senators Christopher Bond (R-Mo.), Johnny Isakson (R-Ga.), and Jim DeMint (R-S.C.). Senate Democrats included, Senators Tom Carper (D-Del.) and Frank Lautenberg (D-N.J.).

The importance of this hearing is that the Republicans strongly stated in no uncertain terms that oversight is needed in this process. As such, a change will have the largest economic impact in the history of rulemaking at the EPA.

The Democrats countered by simply stating that polluted air is causing children to get asthma and that there is a public health crisis that needs to be addressed, and that this EPA rule change will accomplish this goal of reducing breathing ailments nationally.

Three panels of witnesses appeared before the Subcommittee to provide testimony and answer questions:
:....• William Wehrum, the Assistant Administrator, Office of Air and Radiation at EPA;
:....• Bebe Haskell, Commissioner, Walker Country, Georgia;
:....• John A. Paul, Dayton Regional Air Pollution Control Agency, Ohio;
:....• Larry J. Gould, Lenawee Board of Commissioners;
:....• Harry C. Alford, President and CEO, Black Chamber of Commerce;
:....• Conrad Schneider, Advocacy Director, Clean Air Task Force;
:....• Bill Christopher, Executive Vice President, Alcoa.
The EPA science hearing is planned to be held on July 20th.

In a related development, Tom Gibson of PCA led a meeting of senior industry trade association executives with EPA Administrator Stephen Johnson to discuss industry concerns with the EPA proposal.

Also present in the meeting were the Edison Electric Institute, the American Petroleum Institute, American Chemistry Council, National Association of Manufacturers, American Automobile Manufacturers Association, Associated General Contractors, American Road and Transportation Builders Association,and others.

In the meeting, the industry representatives addressed the uncertainties in the scientific studies that would form the sole legal basis for any decision to tighten the standards as well as potential economic impacts on U.S. industry of attaining levels of control beyond the current standards.

By statute, and as confirmed by the U.S. Supreme Court in 2001, EPA is barred from considering economic impacts in setting these standards, which must be at a level requisite to protect public health with an adequate margin of safety.

We will continue to work with our partners to ensure that decision makers are conversant with the scientific uncertainties as well as the competitiveness issues for US manufacturers.

Contact: John Shaw.

Administration's Estimates Show Increase in Highway Trust Fund Revenues

Earlier this week, the Bush Administration released updated federal revenue and expenditure estimates showing an increase in Highway Trust Fund (HTF) Highway Account revenues of $1.7 billion through FY 2009.

Earlier this year, the Administration estimated that the Highway Account's $10.2 billion balance would drop to negative $2.3 billion by the expiration of SAFETEA-LU in 2009. This report shows a negative Highway Account balance of $600 million in 2009.

While the improved financial status of the HTF—the source of federal investments in roadway infrastructure improvements—is welcomed news, the estimates are very fluid and continue to show the need to generate additional resources to address the nation's surface transportation needs.

For more information, contact Jim Kolb or David Hubbard.

Hours of Service Exemption Request to be Published Next Week

The Federal Motor Carrier Safety Administration (FMCSA) has notified NRMCA that its request for an exemption from hours of service (HOS) record-keeping requirements will be published in the Federal Register on Tuesday.

NRMCA made the exemption request on behalf of ready mixed concrete producers in the Gulf States that were affected by the record number of hurricanes in 2005.

The affected states include Alabama, Florida, Louisiana, Mississippi, and Texas. NRMCA is working with state affiliates in these areas to craft comments in support of the association's request for the exemption.

The FMCSA will take comments for a period of 30 days after publication. If the exemption request is granted, then mixer drivers who travel across state borders to deliver ready mixed concrete will be allowed to use an alternative record of duty status—essentially a time card record—instead of the burdensome "grid" log now used by drivers. All other HOS requirements will remain in effect.

Finally, if granted, the exemption will not negatively affect public safety in any way since the exemption is for paperwork only.

For more information, contact: Tom Harman, Robert Sullivan, or Kevin Voelte.

Citizen's Group Challenges Hours of Service Revisions

Public Citizen, a coalition comprised of the Teamsters, Advocates for Highway and Auto Safety, Citizens for Reliable and Safe Highways, and Parents Against Tired Truckers, is once again leading the charge against the Federal Motor Carrier Safety Administration's (FMCSA) latest attempt at revising the Hours-of-Service (HOS) Regulations.

Public Citizen believes the most recent revision, issued in August 2005, is fundamentally the same document as the previous revision that was issued in April 2003.

In its brief before the U.S. Circuit Court of Appeals for the District of Columbia, Public Citizen argues that "the record establishes overwhelmingly that such staggering workloads subvert highway safety and imperil drivers' health."

Public Citizen's ire is directed principally at the increase in driving time from 10 to 11 hours and the 34 hour weekly clock reset. FMCSA counters that their new rules are backed by "sound science." Final briefs in the case are Sept. 29, 2006.

Contact: Robert Sullivan.

Agency Announces New Water Efficiency Awards Program

The U.S. Environmental Protection Agency's (EPA) Office of Water announced yesterday the creation of a new awards program, the Water Efficiency Leaders Program.

The program will recognize organizations and individuals who provide leadership and innovation in water efficiency. Recognition will be given on the basis of community or organizational leadership in the areas of water efficiency, originality, public purpose, global perspective and implications, and overall improvements in water efficiency.

Award recipients gain national recognition from the EPA for accomplishments and the opportunity to share best practices with others. If your company has developed water efficient practices to manage your water consumption, you should apply for the award. Applications must be postmarked by July 21, 2006.

Click here to read an announcement of the program and how to apply. For assistance, contact Thomas Harman at NRMCA.

Contact: Tom Harman.

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