... ENERGY & ENVIRONMENT

Senate Recesses Until September

The U.S. Senate recessed early this morning for a month-long break after the Republicans fell three votes short of the 60 needed to proceed on a legislative package containing a minimum wage increase, cuts in the estate tax, and other tax extension provisions.

The Senate is schedule to reconvene on September 5 to continue debate on the FY 2007 Department of Defense appropriations bill.

The House of Representatives recessed last week and also will reconvene on September 5.

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

Senator Places Hold on U.S. Geological Survey Nominee

Senator Ron Wyden (D-Ore.) yesterday placed a procedural "hold" on the President's nominee to head the U.S. Geological Survey.

This action is in protest to lack of support by both the Administration and Congress on the reauthorization of the Secure Rural Schools and Communities payments program.

Earlier yesterday, the U.S. Senate Energy and Natural Resources Committee approved (by voice vote) the nomination of Mark Myers to direct the U.S. Geological Survey.

Congress passed the Secure Rural School and Community Self-Determination Act of 2000 to make up for the decline in timber sales on federal lands in the 1990s.

The law has paid out more than $2 billion since first approved, but is set to expire at the end of September. Lawmakers and the Administration have not developed a replacement strategy.

According to Senator Wyden, the Secure Rural Schools bill provides funds to keep schools open, maintain roads, and provide other vital services.

Contact: John Sullivan.

White House Announces Two Key Nominations

The President this week indicated he will nominate Susan E. Dudley to be Administrator of the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget. OIRA plays a leading role within the Administration assessing the technical merits and cost/benefits of federal rules.

Dudley would replace John Graham, Ph.D., who recently left the post to join the Rand Corporation. Dudley would bring extensive knowledge of the regulatory process to the post. Dudley has spent the past several years on the staff of the Mercatus Center at George Mason University. The Center specializes in cost/benefit analyses associated with federal rulemakings. She previously worked at both OIRA and the U.S. Environmental Protection Agency. She is a graduate of the University of Massachusetts and the Massachusetts Institute of Technology.

In other news, the President also indicated he will nominate Roger R. Martella, Jr., to be the General Counsel at the Environmental Protection Agency (EPA). He would replace Ann Klee, who left the Agency on July 31 to join the law firm Crowell and Moring.

Martella previously served as Principal Deputy General Counsel. He has had previous stints at the Department of Justice, as a clerk on the Tenth Circuit Court of Appeals, and in private practice with Sidley and Austin. He is a graduate of Cornell University and received his Juris Doctor from Vanderbilt University.

Click here to see the White House press release announcing the intentions to nominate Dudley and Martella, among others.

Contact: Andy O'Hare.

House Subcommittee Continues Investigations Into Silicosis Scams

Representative Ed Whitfield (R-Ky.), Chairman of the U.S. House Energy and Commerce Subcommittee on Oversight and Investigations, last week held the fourth hearing in a series this year on the issue of mass silicosis litigation.

The hearings have focused on doctors, screening companies, and now, the lawyers who presumably profit the most. The inquiries are part of a wide-ranging investigation into the practices of doctors, screening companies, law firms, and even state medical boards into how claimants are identified for mass tort actions.

Documents and interviews obtained by the Subcommittee indicate that lawyers, doctors, and medical screening companies created a scheme to generate thousands of silicosis plaintiffs through mass tort screenings.

Lawyers allegedly selected plaintiffs to be screened (sometimes from an earlier diagnosis of asbestosis), told screening companies the criteria to use to test for silicosis, and even provided language for the diagnosing letters.

Representative Whitfield said during the hearing, "One of the real tragedies of litigation based on mass tort screenings is that those who are truly sick can get lost in the shuffle. Lawyers and doctors intent on generating hundreds, if not thousands, of plaintiffs often don't give adequate attention to those who need it the most."

It is believed that the microscopic scrutiny that the silicosis mass tort mechanism is undergoing within Congress will certainly provide a clear picture to the public about how the process takes place ... and eventually discredited.

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

Freight Rail Infrastructure Tax Credit Bill Introduced in Senate

Senator Trent Lott (R-Miss.) introduced legislation (S. 3742) last week providing a 25% tax credit for companies expanding freight railroad capacity.

The tax credit legislation would provide an incentive for railroads and shippers to further invest in rail capacity infrastructure.

Eligible rail infrastructure capital expenditures include track, grading, bridges, tunnels, signals, yards, terminals, and intermodal transfer facilities.

In testimony presented before the House Railroad Subcommittee in April, PCA expressed support for the tax credit legislation if the Class I railroads are required to invest in capacity projects providing relief to shippers served by only one Class I railroad. As currently drafted, the legislation does not address relief for captive shippers.

The U.S. Senate Commerce, Science and Transportation Committee is not likely to consider this bill this year.

Lott was joined by Senators Kent Conrad (D-N.D.), Gordon Smith (R-Ore.), Mike Crapo (R-Idaho), Daniel Inouye (D-Hawaii), Chuck Hagel (R-Neb.), Ben Nelson (D-Neb.), Johnny Isakson (R-Ga), and Lindsay Graham (R-S.C.) in sponsoring the legislation.

Contact: David Hubbard.

Senate Panel Holds Confirmation Hearing on Surface Transportation Board Nomination

The Senate Commerce, Science and Transportation Committee held a confirmation hearing for Charles "Chip" Nottingham, the President's nominee to chair the Surface Transportation Board. Nottingham is currently the Federal Highway Administration's Associate Administrator for Policy.

Nottingham stated that if confirmed, stakeholders should consider him an open-minded and accessible leader. He discussed his work to make government more efficient, highlighting his experience in the House of Representatives and while chairing the Virginia Department of Transportation.

Prior to his confirmation hearing, PCA staff had an opportunity to discuss the cement industry's concerns regarding inadequate rail service.

A Senate vote on Nottingham's confirmation is expected in September.

Contact: David Hubbard.

Corps of Engineers Shores Up Hurricane Protection Office

The U.S. Army Corps of Engineers recently established its Hurricane Protection Office (HPO) to facilitate the handling of more than $5 billion in design and construction hurricane protection projects, which must be completed by 2010. (Click here to see related Engineering-News Record story)

To complete the task, the HPO is sponsoring an industry forum on August 16 and 17 at the New Orleans Marriott. Click here to see additional details.

The first day will be dedicated to small business opportunities; while the second day will be for large design-build, cost-plus and Indefinite Delivery/Indefinite Quantity contracts.

It is anticipated that there will be a great demand for portland cement and concrete as the Corps works to complete the projects by 2010.

Contact: John Sullivan.

Corps of Engineers Changes the Way it Design-Builds Major Projects

In response to the U.S. Army's force realignment, coupled with a significant number of soldiers scheduled to be reassigned from Europe to the United States, the U.S. Army Corps of Engineers is changing the way it procures facilities.

In addition, the Corps is faced with the requirements of the latest round of Base Realignment and Closure as bases are closed and functions consolidated at other facilities within the US.

Currently, the Army requires 41 different facilities types to meet its mission. Examples include barracks, headquarters buildings, dining halls, and training facilities. The Corps has established four Centers of Standardization (CoS) to meet the Military Construction (MILCON) needs.

Each CoS will have the responsibility for specific facility types. The CoS will solicit for the standardization of that facility type to allow for site adaptation at a specific Army base any where in the United States. The intent is to develop a core competency within the construction industry that will allow for the rapid construction of economically built quality structures.

The Corps of Engineers is hosting Industry Days in Fort Worth, Texas; Omaha, Neb.; and Atlanta, Ga. to discuss the changes in the Army's MILCON program. (The Industry day for the Northeast region was held earlier this week.)

Specific details are as follows:
...............• Southwest Region - Aug. 8, at the Fort Worth Botanic Garden, Fort Worth, Texas. Contact: Lisa Billman at 817-886-1066.
...............• Northwest Region - Aug. 16, at the Doubletree Hotel Omaha Downtown. Contact: Phillip Holman at 402-221-3045 or Barbara Young at 402-221-4275.
...............• Southeast Region - Aug. 23, at the Hyatt Regency Atlanta, Atlanta. Contact: Mary Corbin at 912-652-5301.

Presentations will be made describing the CoS program, workload, the facility types and contracts that may be let to achieve the Army's goal as well as presentations concerning small business.

The targeted industry groups for this survey are traditional construction firms, architect-engineer firms and contractors that provide non-traditional construction methods, such as pre-fabricated, pre-engineered, panelized, tilt-up and permanent modular construction.

Contact: John Sullivan.

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