... SURFACE TRANSPORTATION

Senate Committee Approves Technical Corrections Bill

Earlier this week, the U.S. Senate Environment and Public Works (EPW) Committee reported legislation making programmatic and technical language corrections to last year's highway and public transportation law.

The bill corrects technical drafting errors to a number of programs, including the magnetic levitation, or MAGLEV, program, as well as a number of Members' projects. It also addresses concerns with the funding and structure of the surface transportation research program, which were "over-earmarked" during final conference negotiations last year.

Of specific interest to the cement and concrete industries, the bill corrects a provision in SAFETEA-LU that changed the long-standing cost share requirements within the highway research title from its current 80-20 ratio to a 50-50 cost share. If not corrected, the net effect of this change will be to limit the amount of pavement and concrete bridge research that is done under this program. Pavement and concrete bridge research funding for fiscal year 2006 has yet to be obligated.

The bill also contains a provision providing additional funding for the National Surface Transportation Policy and Revenue Study Commission. It also extends the deadline for the completion of the Commission's work by six months, or until February 2008.

It is unlikely the full Senate will consider this legislation prior to the November elections. Similar legislation passed the House earlier this year.

For more information, contact: Jim Kolb or David Hubbard.

Water Resources Bill to Proceed to Conference

The U.S. House of Representatives yesterday approved a motion to proceed to conference on the Water Resources Development Act (WRDA). WRDA authorizes numerous projects and studies on locks and dams, harbors, and other water resources to be conducted under the auspices of the U.S. Army Corps of Engineers.

Following the motion to proceed, the House conferees were announced. They are:

• House Transportation and Infrastructure Committee Chairman Don Young (R-Alaska)
• Water Resources and Environment Subcommittee Chairman John Duncan (R-Tenn.)
• Richard Baker (R-La.)
• Gary Miller (R-Calif.)
• Henry Brown (R-S.C.)
• John Boozman (R-Ark.)
• Transportation and Infrastructure Committee Ranking Member James Oberstar (D-Minn.)
• Water Resources and Environment Subcommittee Ranking Member Eddie Bernice Johnson
  (D-Texas)
• Jerry Costello (D-Ill.)
• Tim Bishop (D-N.Y.)

Conferees from the House Resources Committee include:

• Chairman Richard Pombo (R-Calif.)
• Marilyn Musgrave (R-Colo.)
• Ron Kind (D-Wis.)

Although the Senate has not yet named its conferees, staffs from the House and Senate committees are meeting regularly to iron out differences in the bills and are aiming to finalize a legislative package next week.

Differences between the House and Senate regarding peer review of Corps projects will be among the most contentious issues to resolve.

PCA supports the House-passed Corps reform provision. A provision contained in both the House and Senate bills of paramount interest to the cement industry and NACA members is the authorization of the Upper Mississippi River and Illinois Waterway System lock and dam rehabilitation project.

The provision was strongly supported by PCA because the improvements to the waterway system will enhance the efficiency and cost-effectiveness of transporting portland cement, coal, and other materials used in the cement manufacturing process. In addition, such large-scale lock and dam projects consume large volumes of concrete and portland cement.

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

House Panel Approves Bills Aimed at Dam Safety

The U.S. House Subcommittee on Economic Development, Public Buildings and Emergency Management this week approved two bills to improve dam safety. They are the Dam Safety Act of 2005 (H.R. 4981) and the Dam Rehabilitation and Repair Act of 2005 (H.R. 1105).

NACA strongly supports both bills.

H.R. 4981, which reauthorizes the National Dam Safety Act for five years, provides grants to state dam safety agencies to assist them in enhancing dam safety programs and projects.

H.R. 1105 provides grants to assist states in rehabilitating publicly-owned dams that fail to meet minimum safety standards.

Both bills are expected to be considered by the U.S. House's full Transportation and Infrastructure Committee next week.

Contact: David Hubbard.

Senate Committee Approves Green Buildings Bill

The U.S. Senate Environment and Public Works Committee approved the High Performance Green Building Act (S. 3591) yesterday.

The legislation would strengthen energy efficiency and conservation requirements for the construction of federal buildings.

Introduced by Environment and Public Works Committee Ranking Member James Jeffords (I-Vt.), the bill directs the Administrator of General Services to establish an Office of High-Performance Green Buildings, as well as to develop and recommend a high-performance green building research plan, among other provisions.

Representative Michael Doyle (D-Pa.) introduced similar legislation (H.R. 5931) in the House. The measure is pending before the Subcommittee on Energy and Air Quality.

No committee action has yet been taken.

Prospects for enactment are uncertain considering the short time frame remaining on the legislative calendar.

For more information, contact: Thomas Gibson or John Shaw.

Mine Safety Publishes Proposed Penalty Structure

The Mine Safety and Health Administration last week published its proposed rule to revise the penalty structure system for assessing civil fines when operators violate a mandatory safety or health standard. The revision is required as part of the MINER Act that was signed into law last May.

The agency is holding six hearings across the country to take comment from the regulated community. Written comments to the proposal are due October 23, 2006.

In the proposal, MSHA increases penalty points for each category used in determining monetary penalties for non-compliance, including operator negligence; likelihood of injury/illness; severity of condition; operator production; as well as all others. Penalty points have an associated dollar amount.

The agency also adds a new category for violators who have repeat violations of the same standard. The rule appears to propose an overall increase in penalties by at least 30% compared to the previous assessment structure.

Click here to view the proposed rule and dates for the hearings.

For more information, contact: Tom Harman or Tom Carter.

Senate Committee Approves Geological Survey Nominee

The U.S. Senate Energy and Natural Resources Committee on Wednesday approved, for the second time, Mark Meyers, the President's nominee for the Director of the U.S. Geological Survey.

The committee previously approved the nomination, but a procedural hold by Senator Wyden (D-Ore.), required the nomination to be resubmitted. The hold was eventually lifted.

Meyers will replace Charles "Chip" Groat, PhD, who resigned earlier this year to return to teaching. Meyers is currently the State Geologist and Director of the State of Alaska Division of Geological and Geophysical Survey. The Senate will vote on the nomination for final approval.

Contact: John Sullivan.

Energy Star Label Recognizes Energy-Efficient Cement Plants

The U.S. Environmental Protection Agency (EPA) this week announced a group of first time winners of the Agency's Energy Star award for efficient manufacturing operations.

In announcing the awards, EPA Administrator Steve Johnson remarked, "By committing to smart energy use, America's historic economic backbone is now supporting our nation's brightening environmental future.

"Working with our manufacturing partners, we are implementing President Bush's aggressive and practical strategy to reduce greenhouse gas emissions while growing the American economy," he added.

The plants represent six percent of cement production capacity and include:

• The Ash Grove Cement Company plant in Chanute, Kan.
• The Ash Grove Cement Company plant in Seattle, Wash.
• The California Portland Cement Company plant in Colton, Calif.
• The California Portland Cement Company plant in Mojave, Calif.
• The Lafarge North America plant in Calera, Ala.
• The Lafarge North America plant in Sugar Creek, Mo.

The Agency also recognized several wet corn milling operations and auto manufacturing facilities.

Click here for more information about this plant recognition and the energy efficiency rating system.

Contact: Andy O'Hare.

House Subcommittee Assesses Natural Catastrophe Insurance

The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, chaired by Rep. Richard H. Baker (R-La.), held a hearing on Wednesday to assess the current natural catastrophe insurance marketplace.

The hearing was in response to the severity of recent storm events and the resultant stress on the insurance markets in coastal areas.

Seven of the 12 most costly natural disasters in U.S. history occurred during 2004 and 2005 with Hurricane Katrina alone causing more than $50 billion in insured losses.

The insurance industry panel was comprised of:

• Kevin M. McCarty, Florida Insurance Commissioner, on behalf of the National Association of Insurance Commissioners
• Wendy Baker, President, Lloyd's America, Inc.
• J. David Daniel, Daniel & Eustis, on behalf of Independent Insurance Agents and Brokers of America
• Franklin W. Nutter, President, Reinsurance Association of America
• Gregory W. Heidrich, Senior Vice President—Policy Development & Research, Property Casualty Insurers Association of America
• The Hon. Marc Racicot, President, American Insurance Association
• Charles M. Chamness, President and CEO, National Association of Mutual Insurance Companies

Members of the panel expressed unanimous support for stronger building codes and for quick passage of the flood insurance reform legislation, H.R. 4973.

In his closing remarks, Chairman Baker commented that there may be a need for a minimum federal standard for building codes.

For more information, contact: Robert Sullivan or John Sullivan.

EPA Proposes New NSR Reform Rule

The U.S. Environmental Protection Agency (EPA) yesterday published a proposal that would clarify and simplify the determination as to whether facilities trigger new source review (NSR) requirements. This is the final significant step in the White House effort to streamline the complex NSR program.

The proposal has three components: debottlenecking, aggregation, and netting. Debottlenecking is when an improvement to one portion of a production process enables greater throughput or output from the whole system. Traditionally EPA has interpreted the NSR requirements to apply to improvements that expand a bottleneck. The proposal would exempt unchanged portions of a facility if they had been taken into account in a prior permit or regulatory action.

The aggregation provision would allow projects that are related to be treated as a single project for purposes of NSR applicability determinations.

The netting portion would simplify the calculation of net change in cases that involve both emission increases and decreases.

The deadline for comments is November 13.

Contact: Tom Carter.

Final Language Submitted for Particulate Matter Rule

The U.S. Environmental Protection Agency this week sent final rule language for the revised national ambient air quality standard for particulate matter. The language was sent to the White House Office of Management and Budget (OMB) for approval.

EPA is under court order to publish the final rule by September 27.

The specific provisions contained in the rule will not be made public until the OMB review process is complete and the EPA Administrator has signed the rule.

Contact: Tom Carter.

OSHA Notice Addresses Some Industry Concerns

The Occupational Safety and Health Administration (OSHA) this week released an advanced notice of proposed rulemaking seeking input on the Globally Harmonized System of Classification and Labeling of Chemicals (GHS).

The GHS is a United Nations program designed to seek uniformity in the way that all countries classify the health, physical, and environmental effects of chemicals.

If the United States adopts the GHS, OSHA would have to revise the hazard communications standard that requires regulated facilities to provide—among other things—material safety data sheets or MSDS's.

The advance notice of proposed rulemaking asks for ideas on whether the GHS should be adopted and how the U.S. system should be revised to achieve harmonization.

Although the issue of the hazard communications standard is open, OSHA has taken the opportunity to seek input on whether they should cease the practice of incorporating by reference threshold value limits developed by the American Conference of Governmental Industrial Hygienists (ACGIH).

PCA has strongly opposed any incorporation of ACGIH standards by government agencies.

Contact: Tom Carter.

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