Panel Says No to Expanding Flood Program

The Administration and the insurance industry signaled their opposition Tuesday to a measure that would expand the federal government's flood insurance program to allow wind-damage coverage.

The wind-coverage proposal is contained in a bill sponsored by Rep. Gene Taylor (D-Miss.), who claims carriers decided to stick the federal government with flood claims in the aftermath of Hurricane Katrina, instead of paying out their policy wind-damage claims.

During a hearing of the Financial Services Housing Subcommittee, Housing Subcommittee Ranking Member Judy Biggert (R-Ill.) cast doubt on the Taylor proposal, saying the flood program was forced to borrow almost $21 billion to cover claims from the 2005 hurricane season.
  
Treasury Assistant Secretary Phillip Swagel testified that the Taylor bill would potentially place more debt burden on the federal government and therefore would drive out the private market for insurance.  In addition, three major insurance groups issued a letter opposing the bill.

Democratic members of the subcommittee argued that property-and-casualty insurers are already pulling out of coastal areas, forcing homeowners to obtain coverage under the state-sponsored insurer of last resort.  They claim the bill would be based on actuarial rates, so it would abide by pay/go rules and would cover up to $500,000 in structure claims for homes and $1 million for businesses.

Taylor's wind-coverage proposal will have to overcome some resistance in his own party as Financial Services Capital Markets Subcommittee Chairman Paul Kanjorski (D-Pa.), whose panel has oversight of insurance, is resistant to getting the federal government to play a role in natural catastrophe coverage.  (Source:  National Journal.)

Contact Robert Sullivan.

Agency Issues Final Rule on Chat in Transportation Applications 

The U.S. Environmental Protection Agency (EPA) on Wednesday issued mandatory criteria for the environmentally protective use of chat in transportation projects carried out, in whole or in part, with federal funds.

The chat covered by this rule is mining waste containing lead and zinc from the mining areas of Oklahoma, Kansas, and Missouri, an area known as the Tri-State Mining District.

According to the EPA: “Specifically chat will be considered to be safe and environmentally protective if it is used in asphalt concrete, slurry seals, microsurfacing, or in epoxy seals for anti-skid on bridge decking." Chat also will meet EPA's criteria if it is used in portland cement concrete, flowable fill, stabilized base, chip seals, or as road base providing that that site-specific testing is completed to ensure regulatory compliance (pertaining to water quality). 

An acquirer of the chat, according to the EPA, must submit a signed certification that the chat will be used in accordance with EPA's criteria, EPA said. The certification, which must be provided to the state environmental regulator where the chat is used, will describe the location of the chat and the amount required, the agency continued.

The final rule applies to an estimated 100 million tons of chat produced from the mid-1800s until 1970 in a tri-state area covering about 2,500 square miles.

EPA developed the regulation in response to Section 6018 of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act, which required the agency to develop criteria for safe uses of chat from part of that tri-state area. 

This final rule is effective on September 17, 2007. (Source: BNA and the U.S. EPA.)

Click here to read more about chat.

Contact John Sullivan or Leif Wathne.

U.S. House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) announced plans to hold a number of hearings after Labor Day on H.R. 2125, the Railroad Competition and Service Improvement Act of 2007.

He also stated that he plans to move the legislation through the Committee this Congress.   Chairman Oberstar made the remarks to a meeting of the Minnesota Regional Railroad Association on Monday.

The legislation, which is strongly opposed by the railroad industry as “re-regulation,” was introduced on May 3, 2007 by Chairman Oberstar and Representative Richard Baker (R-La.). The bill has 46 cosponsors. 

NACA partner PCA is working with key members of Congress to gain support for the bill. 

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