October 9, 2001

Environment and Public Works Committee Members Weigh-In on Stimulus Package

WASHINGTON, D.C. -- Eleven members of the Senate Environment and Public Works Committee, led by Chairman Jim Jeffords, I - Vt. and Ranking Member Bob Smith, R - NH, today sent a letter to Senate leaders outlining programs within the jurisdiction of the Committee that could be included in an economic stimulus package.

Signing the letter are: U.S. Sens. Jim Jeffords, I - Vt., Bob Smith, R - NH, Harry Reid, D - Nev., John Warner, R - Va., Bob Graham, D - Fla., Hilary Rodham Clinton, D - NY, James Inhofe, R - Ok., Jon Corzine, D - NJ, Michael Crapo, R - Idaho., Lincoln Chafee, R - RI, Arlen Specter, R - Pa.

Attached is a copy of the letter.

October 9, 2001

Dear Senators Daschle and Lott:

As you develop an economic stimulus package, there are a number of programs within the jurisdiction of the Environment and Public Works Committee which could be included in such a proposal. We make this request guided by the principles that a stimulus package should be targeted to address the needs of those affected by recent events, should increase near and long-term employment, and must carefully avoid large increases in deficit spending.

We have identified five specific programmatic areas within our jurisdiction that are appropriate for inclusion and would abide by the principles articulated above:

1. Disaster Unemployment Assistance. Implemented by the Federal Emergency Management Agency (FEMA), the Disaster Unemployment Assistance Program provides payments to those directly impacted by a disaster. It is critical to those affected by the recent attacks that this program be modified to ensure that statutory or administrative deadlines not operate to deny compensation. We are currently developing specific recommendations on needed changes to this disaster unemployment program.

2. Transportation Investment. Investment in our nation's transportation infrastructure can play a critical role in our efforts to reinvigorate the economy. Through spending on roads, bridges and other transportation capital, we create jobs and stimulate economic activity for both the near and mid-term. Infrastructure improvements enhance our communities, increase the value of property and promote additional investment. With a useful life of many decades, transportation investments afford a continued and steady return. In recognition of these opportunities, we are proposing a $5 billion one-time increase of federal highway obligation authority to states. The funds would be distributed under existing formulas and would generally be governed by existing program requirements. This investment would create roughly 75,000 jobs within the first year and an additional 100,000 jobs in the following year. Additional investment in our highways and bridges, together with increased funding of our transit and rail infrastructure, would yield a balanced transport system supporting economic growth, improved productivity and more livable communities.

3. Environmental Remediation. The Formerly Utilized Sites Remedial Action Program (FUSRAP) implemented by the Army Corps of Engineers (Corps) is a civil works program which provides important hazardous and radioactive waste cleanup activities at sites once involved in the nation's early nuclear weapons program. The program operates at roughly a 60% spend out rate. FUSRAP cleanups are in various stages at 46 sites around the nation, but are chronically underfunded. The Corps estimates that it could expend an additional $30 million in FUSRAP cleanups in FY02.

4. Flood Control, Navigation, Restoration and Shoreline Protection. The Corps also engages in more traditional activities in the area of flood control, navigation, environmental restoration and shoreline protection. The Corps estimates that ongoing construction projects in these areas are artificially constrained by budgetary limitations. Without such constraints, it is estimated that $1.2 billion could be expended in FY02 on current projects.

5. Clean Water and Drinking Water Infrastructure. Although Americans take clean, safe water for granted, our drinking and wastewater infrastructure is in disrepair throughout the nation, with literally billions of dollars in documented critical needs. This has been a consistent area of Committee attention and investigation over the last several years. The Environmental Protection Agency operates State Revolving Funds (SRF) for wastewater and drinking water to provide assistance to states and localities seeking to meet these needs. As increasingly more stringent Clean Water Act and Safe Drinking Water Act requirements have been instituted in recent years, however, a consensus has developed around the principle that the federal government must do more to assist communities meet these requirements. Accelerating improvements in the security of clean water and drinking water is also imperative. In that connection, we recommend funding between $1 and $5 billion in Federal matching grants to states and municipalities for the purpose of upgrading this critical, but aging and failing infrastructure.

We appreciate your consideration of our request, and offer you our continued assistance should the Senate move forward with a stimulus package. We believe that if carefully crafted to avoid long-term budget deficits, appropriate infrastructure investment can translate into a direct investment in our people, our communities and our future as a nation.

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