This Week in Washington

This weekly report is written by the American Society of Civil Engineers' 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 by e-mail or at 202/789-2200.

Inside This Week:

• House Approves Stimulus Bill, Senate Likely to Make Significant Changes
• Supreme Court Upholds Federal Power to Manage Nuclear Waste
• EPA Names Civil Engineer to Head Southeast Region

1. House Approves Stimulus Bill, Senate Likely to Make Significant Changes

Despite the hardship of working with limited staff and temporary office space, the House approved, mostly along party lines, an economic stimulus bill, H.R. 3090. Most House and Senate office buildings will remain closed today --while health and safety technicians continue to sweep the buildings, process tests and rid any affected areas of anthrax.

The action on the economic stimulus now moves to the Senate, which held a series of meetings Wednesday in an effort to develop a version of the legislation that can pass with broad, bipartisan support. Senators are showing little interest in a replay of House action on the bill. The bill, authored by House Ways and Means Chairman Bill Thomas (R-CA), was adopted Wednesday by a razor-thin 216-214 margin, after a debate that featured partisan boos, jeers and cheers.

A bipartisan group of Senate moderates met with Treasury Secretary Paul O'Neill Wednesday to exchange ideas and to let O'Neill know they have some problems with contents of the House bill. The House bill has been endorsed by the Administration. The coalition, led by Sens. John Breaux, (D-LA) and Olympia Snowe (R-ME), laid out their principles for action. The centrists are calling for a measure which would have a strong immediate impact, be of limited duration, adhere to fiscal discipline, spur both consumer demand and business investment and include no special interest items.

The House-passed bill includes some permanent measures and would cost approximately $99.5 billion in FY 2002 and $160 billion over 10 years. While supporting the House bill, the White House is looking for the Senate to scale it back to about $75 billion. The House-passed bill is mostly focused on tax cuts. Among the provisions of the bill are the following.

• Repeal the alternate minimum tax (AMT) and makes the AMT credit for corporations refundable back to 1986.
• Accelerate implementation of the new 25 percent marginal tax rate approved in the tax bill approved earlier this year.
• Simplify capital gains taxes by repealing market-to-market and the five-year holding period applied to 18 percent and 8 percent rates.
• Allow for 30 percent expensing of certain qualified capital investments for businesses.
• Give a tax break for individuals who did not qualify for the earlier tax refund.

O'Neill also met Wednesday with Senate Finance Chairman Max Baucus (D-MT) and Ranking Republican Charles Grassley (R-IA) in an effort to keep the bipartisan approach alive in the Senate. However, Senator Snowe acknowledged that the situation is very fluid and said, "There will be a hundred different plans from the U.S. Senate."

Grassley said he is determined to work with Baucus-who unveiled his own $70 billion plan Tuesday--on a bipartisan package and indicated he would resist efforts by his GOP colleagues to craft an alternative bill in the committee. The Baucus bill includes $5 billion for highway projects, $15 billion for Amtrak security and high-speed rail development, $1.5 billion for airport construction and $300 million for marine ferries and terminals.

Meanwhile, other Finance Committee Republicans are to meet with Senate Minority Leader Trent Lott (R-MS) Thursday morning to discuss doing just that. One of the most contentious items is health care for laid-off workers. Some Republicans would prefer a tax credit plan for people to purchase their own insurance, but other Republicans might resist that, according to committee sources.

Senate Appropriations Chairman Robert Byrd (D-WV) this week unveiled his $20 billion version of the stimulus bill which would focus on transportation infrastructure and homeland security funding. In addition to the anti-terrorism provisions and support for local police and fire departments, the Byrd bill would provide $2.5 billion for highway enhancement, $2.1 billion for clean and safe drinking water projects, $900 million for Amtrak improvements, and $500 million for economic improvements such as rural airport improvements and small business loans.

Also, yesterday, Senator Ted Kennedy (D-MA) released his proposal for the stimulus package, which contains $10 billion in infrastructure funding. In introducing his proposal, Kennedy stated: ?we must also invest more now in the public works that will expand employment and stimulate the economy. As we make public buildings, airports, and our water supply more secure, we must also build and modernize schools, rail lines, and infrastructure. I propose a new, $10 billion investment for these vital national purposes: $3 billion for highways and bridges; $3 billion for drinking water and wastewater treatment systems; $3 billion for school safety and construction; and $1 billion for our railways and mass transit systems.?

2. Supreme Court Upholds Federal Power to Manage Nuclear Waste
The United States Supreme Court has let stand a decision of a federal appeals court that held that permitting conditions imposed by the state of Kentucky restricting the amount of radioactive waste that the Department of Energy (DOE) could place in a DOE landfill were pre-empted under the Atomic Energy Act (AEA).

While federal law does not pre-empt state regulation of solid waste, states may not regulate the radioactive component of solid waste. The DOE was not required to identify specific conflicts between the AEA and the Kentucky Natural Resources and Environmental Protection Cabinet's permit conditions to establish federal preemption, since the AEA specifically regulated the disposal of radioactive material, the appeals court had ruled.

The lower court also held that the United States did not waive sovereign immunity from the permit conditions, even though the Resource Conservation and Recovery Act (RCRA) waived sovereign immunity to state regulation of federal facilities with respect to solid waste. The RCRA's definition of "solid waste" expressly excluded materials covered by AEA, the appeals court said.

3. EPA Names Civil Engineer to Head Southeast Region
Environmental Protection Agency Administrator Christie Whitman has appointed James (Jimmy) I. Palmer Jr. as the new regional administrator in Region 4. ASCE endorsed Palmer?s candidacy earlier this year.

Palmer, a civil engineer and lawyer from Jackson, Mississippi, will be responsible for EPA programs in Georgia, Kentucky, Tennessee, North Carolina, South Carolina, Alabama, Mississippi and Florida. Prior to his appointment, Palmer practiced law in Jackson. Palmer also served for 12 years as the Executive Director of the Mississippi Department of Environmental Quality (DEQ) through the administrations of two governors.

During his time at Mississippi's DEQ, Palmer was a part of various EPA efforts including the Policy Review Board and Management Committee for the Agency's Gulf of Mexico Program, the Mississippi River/Gulf of Mexico Watershed Nutrient Task Force and the Small Towns Task Force. Palmer also served as Executive Director in the Office of General Services, part of the Office of the Governor in Mississippi.

Palmer holds a law degree from the University of Mississippi and a Bachelor of Science in Civil Engineering from Mississippi State University.