The Week Ending July 7, 2000
This weekly report is written by ASCE's Government Relations staff. If you have questions or comments about any items in this report, please contact Brian Pallasch, Michael Charles, Martin Hight, Austin Fulk, or Liz Hermsen at 202/789-2200.
Inside This Week:
1. Lott Plan Appears to Kill Superfund Rewrite
Senate Majority Leader Trent Lott made a secret promise in writing in 1999 to kill changes this year to the Superfund hazardous waste cleanup law, the Washington Post reported on July 1. Lott made the deal in order to win passage of a special provision to exempt scrap metal dealers from having to comply with Superfund. The Congressional Budget Office (CBO) estimates the provision will be worth as much as $700 million to the scrap metal industry over the next decade.
According to the Post, Lott's deal with Sen. Michael Crapo (R-Idaho) imperils one of the few environmental initiatives with bipartisan support in the Senate, a measure to amend Superfund to ease potential liabilities for developers who buy abandoned factory sites and inner-city junkyards. Democrats and Republicans alike favor such "brownfields" legislation because it could limit lawsuits while speeding the redevelopment of blighted industrial areas.
But under the written agreement with Crapo, Lott pledged that in exchange for Crapo's allowing the scrap metal exemption to pass, Lott would kill other revisions in the Superfund law, including the brownfields bill, unless they were part of a complete overhaul. Such an overhaul is not on the horizon. Republicans and Democrats on the Senate Environment and Public Works Committee were caught unaware by the deal, first reported in the newsletter Inside EPA.
The scrap metal dealers were being represented by GOP lobbyist Haley Barbour, former chairman of the Republican National Committee and a close Lott ally from Mississippi. Shortly before Congress passed the scrap metal legislation late last year, Barbour hired away the Lott staffer who had worked on the issue. According to lobbying reports, the Institute of Scrap Recycling Industries paid Barbour's lobbying firm, Barbour, Griffiths & Rogers, about $300,000 last year. Lott strongly pushed the scrap metal change and was persuaded, he said, after hearing from a Mississippi fraternity brother in the business who described how the law unfairly punished recyclers. The scrap metal industry, which argued that it should be excused from Superfund requirements because it was helping the environment by recycling used material, also had the support of the Clinton administration and Senate Minority Leader Thomas A. Daschle (D-S.D.). But the exemption was opposed by some environmentalists and industry groups. They complained that the recyclers contribute to environmental pollution and that shielding them from liability unfairly places more of a financial burden on manufacturers and waste companies.
Crapo, chairman of a Senate environment subcommittee, had a different set of concerns. Mining companies in Crapo's state are liable for hundreds of millions of dollars in environmental cleanup costs mandated by the Superfund law. Crapo favors far-reaching changes in the statute to help these companies. He did not oppose the idea of an exemption for the scrap metal industry, but feared it would interfere with his efforts to pass broader Superfund reforms. In addition, Crapo and Lott believe the brownfields legislation could be an engine to pull along broader Superfund changes, and that to pass it now might be a tactical mistake.
In return for Crapo's agreement not to oppose the scrap metal exemption, Lott promised in writing to kill brownfields legislation or changes in Superfund during this Congress. Lott's spokesman John Czwartacki said the letter was intended to ensure that a promise Lott made to Crapo did not get lost in the flurry of year-end legislation. "All it is is putting on paper what was committed to verbally," Czwartacki said. In the November 16, 1999, letter, Lott wrote:"You have agreed not to exercise your rights and privileges under Senate rules to object to [the scrap metal exemption] in any legislation brought before the Senate this session. In exchange, I have agreed to use the privileges of my position as majority leader to ensure the following: no Brownfields proposal or Superfund liability exemption or limitation proposal . . . will be allowed to be considered or acted upon by the Senate during this Congress, either as a stand-alone bill or as part of any other legislation."
2. Bush Announces K-12 Math and Science Education Proposal
Presidential candidate George W. Bush announced his plan on June 20 for improving K-12 math and science education. Governor Bush's proposal would increase Pell Grants for students taking college level math & science in high school, establish a $1 Billion Math and Science Partnership to join states with institutions of higher learning, require states participating in the Math and Science Partnership to meet accountability measures to boost student performance, and provide monetary incentive for math and science teachers to teach in schools with a high percentage of low-income students.
3. Government Loses Millions Annually on Hydropower Program
The Federal Energy Regulatory Commission (FERC) fails to collect millions of dollars annually from power companies to cover the cost of administering the federal hydropower program, the General Accounting Office (GAO) reports. The GAO, the investigative arm of Congress, concluded that FERC failed to provide clear guidance to other federal agencies on how to report and collect the costs of administering the hydropower program from projects owned by the federal government or operated by private companies on federal lands. This resulted in a loss of about $12 million in federal revenues between 1995 and 1998, the GAO said.
"We estimate that tens of millions more dollars may not be recovered over the next decade unless corrective action is taken," the GAO concluded. Hydropower produces about 10 percent of all electricity generated in the United States. About half of that power is generated by federally owned facilities. The other half is generated by about 1,000 privately owned power plants, of which about 400 are located on federal land.
4. Enforcement of Environmental Laws Varies by Region GAO Says
The enforcement of federal environmental laws by the Environmental Protection Agency (EPA) varies among the agency's 10 regional offices, according to a new report from the General Accounting Office (GAO).
"Variations exist among EPA's regional offices in the actions they take to enforce environmental requirements, as illustrated by a number of key indicators that EPA headquarters enforcement officials have used to monitor regional performance," the GAO reported to the Senate Small Business Committee.
Among the reasons for the variation were differences in the philosophical approaches among EPA enforcement staff about how to best achieve compliance with environmental requirements; differences in state laws and enforcement authorities, and in the manner in which regions respond to these differences; variations in staff and money available to state and regional enforcement offices; the flexibility afforded by EPA policies and guidance that allows states a degree of latitude in their enforcement programs; and incomplete and inadequate enforcement data that hamper EPA's ability to accurately characterize the extent of variations, according to the GAO.
EPA administers its environmental enforcement responsibilities through its headquarters Office of Enforcement and Compliance Assurance (OECA). OECA provides overall direction on enforcement policies, and occasionally takes direct enforcement action, but much of its enforcement responsibilities are carried out by its 10 regional offices. These offices are responsible for taking direct enforcement action and for overseeing the enforcement programs of state agencies that have been delegated enforcement authority.
5. Issues Survey Now Available On-Line
The 2001 Issues Survey you probably already received in your mailbox is now available on the World Wide Web! If you haven't sent in the survey already, please fill out the survey on-line. ASCE's Government Relations Department is asking you, as an important member of our Key Contact Program, to help us set our compass for 2001 on the most important public policy issues for the civil engineering profession at the federal and state/local levels. Your responses to the survey will be compiled into a report for ASCE's Committee on Government Affairs and Board of Direction to assist in determining our public policy priorities for the 107th Congress. Please complete the on-line survey by July 14, 2000. If you have any questions, please contact Liz Hermsen, Manager of Grassroots Programs at govwash@asce.org or (202) 789-2200.
6. State Legislative Update
ASCE continues to provide updates on state legislation affecting civil engineers as state legislative sessions progress. For more information on the following bills, or any other state legislative matters, please contact Austin Fulk, ASCE's Manager of State Government Relations, at (202) 789-2200 or via email.
Gas Tax Repeals
Because of the recent rise in gasoline prices, a number of states are considering repealing or suspending their sales taxes on gasoline and other motor fuels. Earlier this year, the California Assembly voted down a measure to repeal the gas tax, while Governor Frank O'Bannon of Indiana has acted on his own under state law, to temporarily suspend the state's gas tax. This issue particularly affects civil engineers because in a number of states the gas tax is the primary, or at least a major, source of funding for transportation-related construction. As a result, ASCE will closely monitor activity related to gas tax suspension or repeal. Recent activity on the issue includes:
Illinois
On June 29, the Illinois legislature passed, and Governor George Ryan signed, S.B. 1310 to suspend the state's 5 percent tax on gasoline from July 1, 2000 until December 31, 2000.
South Dakota
Rep. Ron Volesky has called for a special session of the state legislature to consider suspension of the state's $.22 per gallon gas tax. No action on this request has been taken.
Colorado
Sen. Bill Thiebaut is urging that the state Senate be called into special session to consider a temporary moratorium on the state's $.09 per gallon tax on gas. There was no response from the Governor, who would have to call a special session.
7. ASCE Congressional Fellow Monthly Report, June 2000
Early in the month I prepared hearing materials for S. 2508, the Colorado Ute Indian Water Rights Settlement Act Amendments of 2000. Senator Conrad is a member of the Senate Committee on Indian Affairs. This legislation would end the long standing claims by the Colorado Ute Tribes on water from the Animas-LaPlata (APL) river system. It calls for the construction of a pumping station, storage reservoir and distribution piping for a 57,000 acre feet water supply system. Treaties dating back to the 1860's form the basis for subsequent settlement agreements and this legislation. Environmental concerns have caused significant modifications in the project which originally called for an in-stream dam. Current cost estimates range in the vicinity of $170 million. Senator Ben Nighthorse Campbell is Chairman of the Indian Affairs Committee and has tirelessly worked to resolve issues with the environmental community and the administration.
An interesting issue on this project is the benefit/cost (B/C) ratio. As engineers we often see this ratio as a switch which is either on or off. A positive B/C ratio means the project is a go. And a negative (less than one) B/C ratio means the project does not get built. Well in this case the United States made certain commitments to the Tribes and even if the project has a B/C ratio less than one the project should move ahead. Senator Campbell's arguments were given as examples, such as United States aid in Kosovo. Was it "cost effective" to bus refugees into safe heavens? Was it cost effective to air drop food? Probably not.
Some would argue that the B/C ratio is only one evaluation tool which we should be looking at. Although we as engineers often have a fairly good estimate of the cost, there are many benefits which we can often not quantify. In the case of Kosovo, what is the value of lives saved? In the case of the Colorado Ute Tribes, what is the value of their quality of life? So too with many of our public works projects, what is the value of our quality of life? We, as engineers, should probably expand our horizons, beyond the obvious benefits, to sustainability benefits, environmental and anti-sprawl benefits, and quality of life benefits for generations to come.
The Conservation and Reinvestment Act of 2000 (CARA) (H.R. 701, S. 2123) passed the House of Representatives on May 11th by a vote of 315-102. I prepared a draft memo for Senator Conrad on the potential of the legislation here in the Senate. It is expected to be in Committee Markup during the July work period. CARA is the most extensive natural resource protection legislation since passage of the Land and Water Conservation Fund Act (LWCF) of 1965. CARA uses funds from the Outer Continental Shelf oil leases to fund federal, state and local land purchases. About $2.85 billion per year will be placed in a fund to be used for LWCF, Wildlife Conservation, Urban Park and Recreation, Historic Preservation, Indian Land Restoration and Conservation Easements. The funding will be dependent on the projection of paying down the national debt by the year 2013, the strength of the Medicare and Social Security Trust Funds and other "safeguards". The legislation will sunset in 2015. Which means that a total of over $30 billion will be available for land and conservation projects.
During the month, the National Building Museum held an awards ceremony, "Setting a Standard for Design and Innovation: A Salute to Gerald D. Hines." ASCE is a Fellow member of the Leadership Committee of the Museum which occupies one of Washington's most spectacular interior spaces in a building that was designed by Montgomery Meigs, a CIVIL ENGINEER, in 1881 and was completed in 1888. I was asked to attend the ceremony and be a part of the ASCE delegation. Over 1000 architects, engineers and construction professionals attended. The website for the National Building Museum is http://www.nbm.org.
At the end of the month, I attended the Environment and Public Works Committee markup of the Water Resources Development Act of 2000 (S.2437). This legislation contains the Everglades Restoration Plan which will provide southern Florida with essential water supply services and protects the Everglades ecosystem. Several years in the making, this legislation will extend over a 10-year period with a total cost of $7.8 billion. WRDA 2000 also included funds for 89 projects nationwide which included the Houston Ship Channel expansion, the Missouri River Valley Improvement Act, the CALFED project and others.
I will be presenting a paper on Water Resource Issues at the ASCE/EWRI Joint Water Conference in Minneapolis in late July. My paper is titled, "Water Resource Developments from a Congressional Viewpoint". As part of the conference I will also attend meetings of the EWRI Public Policy Committee.
Respectfully Submitted,
David Westerling, P.E.
ASCE 2000 Congressional Fellow
david_westerling@conrad.senate.gov
