Before the recess the House of Representatives cleared a $2.1 trillion budget resolution for FY 2003. The resolution sets aside $4.4 billion in additional highway spending, restoring some of the potential $8.6 billion reduction in FY 2003 compared to FY 2002 that resulted from lower revenues into the Highway Trust Fund (AASHTO Journal, March x). The House resolution funds the highway program at $27.7 billion, the level authorized in the Transportation Equity Act for the 21st Century.

The Senate now is expected to debate its FY 2003 budget blueprint, cleared by the Budget Committee last month. The Senate proposal includes $5.6 billion more in highway spending, providing a total of $28.9 billion for FY 2003.

Prospects for the budget resolution clearing the Senate are uncertain at this time, given the 50-49-1 party split. According to the CQ Daily Monitor, there are also discussions underway in the Senate to debate renewing spending caps over the next five years as the budget plan is under consideration.

The current spending caps, which were set in the 1997 Balanced Budget Act, expire this year. With the federal fiscal picture showing red ink, there is renewed interest in setting new caps in an effort to rein in spending. During Senate Budget Committee debate on the FY 2003 resolution, an amendment to set new caps failed by a one-vote margin, and there is interest in bringing up a similar amendment during debate on the Senate floor.

It's possible the Senate will not pass its own version of a FY 2003 budget. If it does occur, however, many observers believe the House and Senate may then be unable to reach agreement on a common budget resolution. That prospect would leave the respective appropriations committees to work under their own budget assumptions in crafting transportation spending for FY 2003. Observers are concerned that the issue of restoring lost highway funds may not be resolved until fall.

Energy Package Up First in the Senate

The Senate will resume debate on its comprehensive energy plan when its members return next week. Many amendments, some controversial, are pending.

Senate Majority Leader Tom Daschle's (D-SD) bill currently includes a mandate to triple the production of ethanol, spurring reduced revenues of up to $3 billion a year on the Highway Trust Fund, because ethanol fuel blends currently are taxed at a lower rate than gasoline.

Ten task forces have been established within the FHWA to address the broad range of transportation issues expected to be included in the next highway and transit reauthorization legislation which will come before Congress in 2003. AASHTO is also preparing its recommendations on the reauthorization, which will be considered by the Board of Directors at their spring meeting in Farmington, Pennsylvania April 21-22.

Members of AASHTO's Standing Committee on the Environment and Standing Committee on Planning met with the FHWA Task Force representatives on environment and planning in Charleston. Other task forces formed by FHWA include data, finance, freight, outreach, personal mobility, research and technology, safety and security.

Among the topics covered in the discussions were approaches to align transportation conformity and planning requirements, financial planning and fiscal constraints; performance-based planning, multi-state planning, freight, planning and the NEPA (National Environmental Policy Act linkage; funding for capacity building; streamlining the planning process; local consultation; operations and planning; and safety and security planning.

John Njord, Director of the Utah Department of Transportation, and Chairman of the Standing Committee on the Environment, delivered the opening address for the joint SCOE/SCOP session. He described the history of integrating environmental concerns into highway project planning, saying that states need to change the culture to ensure that transportation projects leave the environment better than before.

Cindy Burbank, FHWA's Director of environment and planning programs, told delegates that the FHWA would soon announce its decision on whether to withdraw the controversial planning and NEPA regulations proposed last year. She noted that Congress had directed that the DOT proceed with issuing some regulation on local consultation requirements, and that options are now being considered. She also noted that TEA-21 requirements still apply regardless of whether implementing regulations have been issued.

The State and Territorial Air Pollution Program Administrators/Association of Local Air Pollution Control Officials (STAPPA/ALAPCO), based in Washington, D.C., announced the formation of the coalition of states on March 28. S. William Becker, executive director of STAPPA/ALAPCO, said it demonstrates that state and local governments are prepared to step in if federal regulation appears to show regulatory gaps.

The groups and states deemed the coalition necessary because current Environmental Protection Agency regulations will require more stringent air-pollution standards on large diesel trucks in the years 2002-2004 than in the two years immediately following. STAPPA/ALAPCO suggested that getting an effective nationwide standard by having numerous states agree to a single, more stringent regulatory approach would dissuade truck-makers from manufacturing engines to the lower federal standard, because they could not be sold in several states.

Although prices are below the one-month average a year ago -- in March 2001 -- the four-week leap is the sharpest yet recorded by the Energy Information Administration (EIA), the statistical branch of the Department of Energy. EIA reported that the price of regular gasoline went from $1.116 per gallon on February 25 to $1.342 per gallon on March 25. By April 1 the price rose by another 2.9 cents, to $1.371.

Oil industry analyst Trilby Lundberg told AP that caps on oil production, the traditional spring rise in gasoline demand, and relatively low gasoline prices seen following the events of September 1, 2001 are factors for the recent price hike.

"There was such a diverse array of powerful elements affecting the price," Lundberg said "Economic recovery in the United States and abroad is also increasing demand."

Lundberg conducted a survey of 8,000 gas stations nationwide. The increase of 14.3 cents per gallon between March 8 and March 25 was the largest per -gallon increase in half a century. The previous two-week record was a 12.69-cent rise in April 2001.

Potential Impacts on States

Just last year, steep gasoline price hikes prompted the introduction of several measures in Congress to repeal a portion of the federal motor-fuel tax that supports the Highway Trust Fund, which finances road construction nationwide. None of those measures became law.

The annual event brings together a wide 4spectrum of industry and public-sector interests to discuss initiatives to enhance freight productivity.

Mary Peters, Administrator of the Federal Highway Administration, delivered the keynote, describing the place of freight transportation in the Administration's TEA-21 policy development. Tom Donohue, President of the U.S. Chamber of Commerce and former head of the American Trucking Associations, spoke of the importance of transportation investment from a business perspective and reported on the chamber's activities in support of freight improvement.

Lance Grenzeback, Senior Vice President of Cambridge Systematics, shared an overview of freight facts and issues based on his report, Proposed National Freight Productivity Program: Public Policy Options. Grenzeback noted that:

• Import/export freight tonnage could double by 2020 and domestic freight tonnage could increase by about 70 percent.
• At intermodal terminal, volumes are forecast to double or even triple, and may quadruple at airports;
• The two-decade decline in logistics expenditures, a measure of freight transportation productivity, has stalled.
• Infrastructure investment and operations improvements are needed to maintain and improve the performance of the nation's freight systems.

Mallory and Horsley described AASHTO's TEA-21 reauthorization process, discussed state DOT freight transportation initiatives and responded to questions about how to give freight transportation projects higher priority in state and local programs.

The private-sector panel included representatives of the Intermodal Association of North America, the American Association of Port Authorities, the American Trucking Associations, the Association of American Railroads, the National Industrial Transportation League and the World Shipping Council.

The president used his authority to make such appointments without reference to Senate confirmation during periods when Congress is in recess to finalize the appointments. In so doing, Bush bypassed Sen. Joseph Biden's "hold" on the nominations. However, the appointments will only be effective through this session of Congress, according to the Hartford Courant.

Police officers are set to be stationed at airport screening stations in place of the guard, the Washington Postreported. Local police will be at the checkpoints until the security agency hires its own law enforcement officers. The federal government will reimburse the airports for the officers' salaries.

According to TSA spokesman Paul Turk, there is no timetable for replacing all the local police with federal officers.

TSA gave airports until April 30 to arrange for law enforcement officers, such as local police, state troopers or sheriff's deputies, to stand guard at passenger screening stations. Airports must have one officer for every six open lanes at a checkpoint, where passengers and carry-on luggage are screened.

"They do need some sort of police force to arrest people who are found violating security rules at the security lanes. These are people bolting through or carrying weapons," said David Stempler, president of the Air Travelers Association, an advocacy group.

The troops, stationed at airports since shortly after September 11, were supposed to be withdrawn last month, but the TSA successfully sought a two-month extension.

Police officers are set to be stationed at airport screening stations in place of the guard, the Washington Postreported. Local police will be at the checkpoints until the security agency hires its own law enforcement officers. The federal government will reimburse the airports for the officers' salaries.

According to TSA spokesman Paul Turk, there is no timetable for replacing all the local police with federal officers.

TSA gave airports until April 30 to arrange for law enforcement officers, such as local police, state troopers or sheriff's deputies, to stand guard at passenger screening stations. Airports must have one officer for every six open lanes at a checkpoint, where passengers and carry-on luggage are screened.

"They do need some sort of police force to arrest people who are found violating security rules at the security lanes. These are people bolting through or carrying weapons," said David Stempler, president of the Air Travelers Association, an advocacy group.

The troops, stationed at airports since shortly after September 11, were supposed to be withdrawn last month, but the TSA successfully sought a two-month extension.