Carper Seeking to Add Four-Pollutant Bill to Climate Legislation

Senator Tom Carper (D-Del.) is seeking to add his bill (S. 1177) to legislation being planned by Senators Joe Lieberman (I/D-Conn.) and John Warner (R-Va.). The latter initiative is aimed at reducing nationwide carbon dioxide emissions by 70 percent by 2050.  

Senator Carper's measure would control power plant emissions of carbon dioxide, nitrogen oxides, sulfur dioxide, and mercury.

A spokesperson for Senator Carper, Bette Phelan, said the Senator and his staff are talking with Senators Lieberman and Warner to get the measure included as part of the Lieberman-Warner bill.  The legislation would encourage sources to reduce emissions of all four pollutants at the same time because this is the most cost-effective way to maximize public health and environmental benefits, according to a July 26 letter to Senator Lieberman written by Senator Carper and nine cosponsors of the Clean Air Planning Act or 2007 (S. 1177).

An outline of the Lieberman-Warner, released on August 2, addresses the use of emissions trading to achieve greenhouse gas emissions reductions. Lieberman plans to have the Subcommittee mark up the bill in early October.

Introduced in April, the Carper bill would require the power industry to reduce carbon dioxide emissions to 2.2 billion tons in 2015. This is the same level of emissions logged in 2001. After 2015, it would require a 1 percent reduction a year, and after 2020, a 1.5 percent reduction.

The Carper legislation would reduce emissions of nitrogen oxides, sulfur dioxide, and mercury by 68 percent, 82 percent, and 90 percent, respectively, by 2015. The bill's programs would apply nationwide and would use emissions trading for nitrogen oxides and sulfur dioxide, but not for mercury.

Contact Tom Carter.

The U.S. Senate this week approved, by a wide margin, legislation authorizing more than 600 U.S. Army Corps of Engineers water projects at a cost of $23 billion. The long-overdue Water Resources Development Act of 2007 (H.R 1495) cleared the Senate by a vote of 81 to 12, with seven members not present to vote.

Key advisors to President Bush have recommended that he veto the bill; however, during the debate on the measure this week, several Republican Senators said that they had tried to dissuade the White House from doing so.

Considering the legislation was approved by extremely wide margins in both the U.S. House of Representatives and Senate, a veto would be easily overridden.  A recent Statement of Administration Policy expressed strong opposition over the bill's authorized funding levels.  

Some Republican Senators, including Environment and Public Works Committee Ranking Member Jim Inhofe (R-Okla.), pointed out that the legislation is a simple authorization and that projects must be funded through the annual appropriations process.

Of particular interest to NACA members, the bill authorizes rehabilitation projects on the Upper Mississippi River and Illinois Waterway. The legislation also requires peer review of projects that cost more than $45 million.

Contact David Hubbard.

Transportation Committee Holds Rail Customer Hearing

The U.S. House Transportation and Infrastructure Committee, chaired by Jim Oberstar (D-Minn.), held a lengthy hearing Tuesday, during which rail customers and members of the Committee made a strong case that the Surface Transportation Board (STB) is broken and must be fixed by means of legislation.

The Committee heard testimony from government witnesses, shippers—including cement producer Holcim (US) Inc.—and rail carriers.

The subject of the hearing was H.R. 2125, the Railroad Competition and Service Improvement Act of 2007, which was jointly introduced by Chairman Oberstar and Representative Richard Baker (R-La.) to address the plight of captive shippers, i.e., those being served by a single Class I railroad.  Typically, where there is competition, prices are lower, a point made in testimony by Senator Byron Dorgan (D-N.D.) and echoed by other panelist and members of the Committee. 

The government panel included witnesses from the U..S. Government Accountability Office (GAO),  Department of Agriculture, and the three STB Board members.  Commissioner Frank Mulvey made several comments regarding the need for at least some of the policy changes at STB, while noting that some progress has already been made.  Of particular interest to PCA, Dr. Mulvey also mentioned that class exemptions put in place many years ago should be re-examined to determine if they are still warranted.  Currently, cement is classified as an exempt commodity from regulation under the STB.

Among the shippers testifying at the hearing, Senior Vice President for Logistics and Supply Chain Management Susan Diehl testified for Holcim (US).  Diehl explained the logistical challenges facing Holcim and the cement industry.  She mentioned that upward of 80 percent of the U.S. cement industry was captive to a single Class I railroad, including Holcim.  She also observed that the STB has done little to protect shippers and has acted as a rubber-stamp to the railroad industry.

At a meeting on Thursday with shipper groups and congressional staff, Chairman Oberstar stated that he will move H.R. 2125 out of the Transportation and Infrastructure Committee and to the House floor, if not by the end of this year, then the beginning of next year.

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Contact David Hubbard.

Commerce Committee Chairman Unveils
Carbon Emissions Tax Plan

U.S. House Energy and Commerce Committee Chair John Dingell (D-Mich.) yesterday unveiled his carbon emissions tax proposal. 

The plan includes a 50-cent-per gallon tax on gasoline and jet fuel; a $50-per-ton tax on carbon released from burning coal, petroleum or natural gas; and, a phase-out of the interest tax-deduction on home mortgages for homes larger than 3,000 square feet.

The revenues would primarily be used to expand the Earned Income Tax Credit to help lower-income families compensate for the increased taxes on fuels. The revenue from the gas tax would be directed into the Highway Trust Fund, with 40% going to the mass transit and 60% going to roads. The revenue from the tax on jet fuel would be directed into the Airport and Airway Trust Fund.

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Contact Andy O'Hare, John Shaw, or David Hubbard.

By a vote of 263-146, the U.S. House or Representatives yesterday passed legislation that would reauthorize the federal government's National Flood Insurance Program (NFIP), but the bill faces a high hurdle in the Senate over opposition to a provision that would allow optional wind-damage coverage. 

The provision, sponsored by Rep. Gene Taylor (D-Miss.), would provide optional wind coverage, based on actuarial rates, for those participating in the flood program.

Included in the bill is a provision included by Rep. Randy Neugebauer (R-Texas) that directs the Federal Emergency Management Agency (FEMA) to study whether building codes can be integrated into the NFIP’s land-use management criteria.

The House also approved Financial Services Committee Chair Barney Frank (D-Mass.) manager's amendmen, which contains a provision requiring structures eligible for wind coverage to meet International Code Council wind rating requirements.

However, the House NFIP bill faces numerous obstacles. The White House contends the Taylor language would be fiscally irresponsible, undermine the private market, and distort rates. In a Statement of Administration Policy, the White House Wednesday threatened a veto of the measure because of the Taylor language.

The Senate Banking Committee plans a Tuesday hearing on the issue. Banking Committee Ranking Member Richard Shelby (R-Ala.), is opposed to expanding the program because it would increase taxpayer liabilities on a program that already has $18 billion in borrowing costs from the 2005 hurricane season.

In addition, Banking Chairman Chris Dodd (D-Conn.), an insurance industry ally, noted that the program isn't due to be reauthorized until next year. (Source: Congress Daily)

Contact Robert Sullivan or John Sullivan.

Army to Spend $3 Billion Building New Barracks
                       
The U.S. Army Corps of Engineers this week issued notices announcing its plan to seek proposals for more than $3.1 billion of new barracks at Army facilities across the nation.

The Corps' Fort Worth district, which is managing program, issued 14 different pre-solicitation notices.

Some are at specific bases such as Fort Drum, N.Y. ; Fort Lewis, Wash.; Fort Jackson, S.C.; and Fort Benning, Ga.   Others would cover multiple locations in regional areas, and still others are earmarked for economically distressed areas. Four others would cover new warehouses to be built at facilities. They also include two separate $500-million contracts for construction of barracks in the Army's northwest and southwest regions of the U.S.

The Corps plans to issue its request for proposals on Oct. 10 for the various barracks contracts, with proposals to be due by Nov. 9. (Source:  Engineering News Record.)

Contact John Sullivan.

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