The House of Representatives on Wednesday approved a $100 billion tax-relief and jobless benefits package aimed at stimulating the flagging U.S. economy - the first step in an economic stimulus package that may ultimately include increased spending for transportation projects.

However, the 216-214 vote, largely along party lines, revealed splits in the unity that had followed America's response to the terrorist attacks of Sept. 11, as well as deep divisions in approach between the two parties. Seven Republicans voted against the bill, while three Democrats voted for it.

President Bush, who spoke this week in Maryland is support of some $75 billion in additional tax relief, has indicated he prefers the GOP-backed emphasis as opposed to Senate proposals that would press for more aid to jobless Americans coupled with higher spending on infrastructure and security upgrades, according to the Daily Monitor.

Debate on the House measure showed fractures in the united front shown by House Republicans and Democrats since terrorist attacks on New York's World Trade Center and the Pentagon, followed by the delivery of several anthrax-laced letters to recipients in New York, Washington and Florida.

Democratic members accused the GOP of supporting a measure they termed "shameful," "outrageous" and "irresponsible," while Republicans countered that the Democrats were attempting to revive "class warfare," CQ reported.

Despite the bitter debate and close vote, however, many observers acknowledged that the House bill may serve chiefly as a vehicle for potentially major changes in the Senate. The Post reported that Rep. Tom Delay (R-TX), the House Majority Whip, assured five New York Republicans that the bill would be modified later to include infrastructure projects; one still voted against the measure.

The House measure, as passed, would let companies speed up tax write-offs on equipment purchases, repeal an alternative minimum tax on corporations that otherwise would pay no taxes, cut capital gains taxes for investors and accelerate part of the tax cut Congress passed earlier in the year.

In the Senate

Meanwhile, in the Senate, Senator Max Baucus, Chairman, has proposed a $70 billion stimulus package split evenly between tax cuts and new spending on unemployment insurance and health insurance. Most observers indicate that the bill will serve as a starting point for continued negotiations between Democrats and Republicans on the 21 member committee, and for talks between House and Senate leaders and Treasury Secretary Paul O'Neill. Baucus draft does not currently contain any infrastructure spending.

There is some speculation, however, that the Senate Majority Leader Thomas Daschle (D-SD) may bypass the Finance Committee and move a package directly to the Senate floor in the interests of expediting the bill. Senate leaders reportedly hope to recess in about three weeks, leaving scant time to finish major appropriations bills and other legislation.

Daschle said this week that he believes the President will work toward a compromise on the legislation. He added that any stimulus bill should be evenly divided between spending and tax relief. He said any new tax cuts should be temporary, not permanent, the Post reported.

A group known as the Senate Centrist Coalition, which now has 43 members, sent letters to Senate leaders saying any stimulus plan should have strong and immediate impact, be of limited duration, and spur both consumer demand and business investment.

Transportation Advocates Strong on Economic Boost

Transportation advocates are continuing to urge Congress to use the existing federal-aid highway and transit programs to channel an infusion of funds to the economy.

A survey conducted by AASHTO of transportation departments in 47 states identified 2,277 projects across the country, worth more than $14.22 billion, that can be obligated for construction within 90 days should additional federal funding become available. A table identifying the number of available projects by state is attached.

"I'll guarantee, we can spend the money and get it out where it will actually affect peoples' lives within a very, very short time," said Joseph Perkins, Commissioner of the Alaska Department of Transportation and Public Facilities and the Chairman of AASHTO's Standing Committee on Highways. If states were provided with funds for transportation-based stimulus, Perkins said, "We will have those contracts on the street, providing large-scale work, injecting money into the economy in a cost-effective manner."

Senate Appropriations Committee Chairman Robert C. Byrd (D-WV) has made public a $20 billion spending plan in support of "homeland security," which contains $5.8 billion in potential spending for highways, transit, rail and aviation security. A similar $18.5 billion bill in the House would provide $2.8 billion for transportation security.

Byrd has been asked by Senate Majority Leader Daschle to assemble several scenarios for a spending package, that could be coupled with tax relief provisions from the Senate Finance Committee (see related article) to form an economic stimulus package.

Meeting with reporters this week, Byrd outlined the $20 billion package, which includes the following transportation security funding:

• Highways $2.5 billion
• Transit security $1.1 billion
• Airport security $1.0 billion
• Amtrak improvements $0.9 billion
• Amtrak security $0.3 billion

Byrd's proposal would also direct more than $3 billion to such efforts as bioterrorism prevention including safeguarding the food supply and water-supply; and assorted law-enforcement and security.

Byrd stressed that the intention of the bill was to combat fear, improve security and fund projects that would have long-lasting benefit to the nation. He was quoted in the CQ Daily Monitor saying, "Fear has hurt the economy. We cannot sit idly by and allow this psychology of fear to envelop every aspect of our society. We have to anticipate future crises."

House Proposal Offered by Obey

On Thursday Rep. David R. Obey (D-WI), Ranking Minority Member of the House Appropriations Committee, proposed his version of a homeland security bill, that would fund $18.5 billion for a variety of security measures ranging from $2 billion to protect federal computer systems to $2 billion for stockpiling vaccines. The bill would include $2.8 billion for transportation security.

There was a break in the long delay on the FY 2002 appropriations bill for the Department of Transportation, with reports that a compromise may have been reached on the issue of restraints on Mexican trucks operating in the U.S. Meanwhile a fourth continuing resolution was passed by Congress to keep agencies in operation through November 16.

The current continuing resolution expires on Wednesday, October 31. The House and Senate sought to extend that time to November 16, and promised a heavy slate of action on spending bills next week.

Of the thirteen major appropriations bills, only the Interior Department funding and military construction have completed conference. No bills have been signed into law by the President. The closing of the House and Senate office buildings for anthrax decontamination left members and staff scrambling to find makeshift offices to conduct business this week. Of the three Senate buildings, only the Russell building is open, and Capitol Hill police say it may be weeks before the Hart building is reopened. On the House side, the Rayburn and Cannon office buildings opened on Thursday, while the Longworth building remains closed.

Little work has been done on the remaining 11 appropriations bills that must be cleared by both chambers, as appropriations staff have been unable to access their offices for documents. Conferees and staff were able to meet at the Capitol to consider and clear the FY 2002 Treasury/Postal bill on Thursday, (which was cleared by the House and Senate later in the day - check Friday).

Consideration of the remaining bills in the Senate may be a little smoother now that Senate Republicans this week withdrew their threat to hold up the remaining bills until more judicial nominations are cleared.

Transportation Appropriations Still Waiting

The FY 2002 transportation appropriations measure has been in limbo since it passed the Senate on August 1, due to disagreement over whether Mexican trucks should be allowed open access to travel in the U.S. Both the House and Senate bills contained severe limits on truck access, despite Administration insistence that free access was a component of the North American Free Trade Agreement. Sens. John McCain (R-TX) and Phil Gramm (R-TX), who oppose provisions in the bill that place tight restrictions on the operations of Mexican-owned trucks, had delayed the Senate from appointing conferees to meet with the House, until some compromise was agreed to. According to the October 26 CQ Daily Monitor, Gramm said that a "good compromise" has now been reached, which reportedly would phase in truck inspections while facilities are being put in place to allow the same kind of truck inspections which occur at the Canadian border. No further details were available and others indicated that the compromise is just a "starting point" for conferees. The newsletter reported that conferees had finally been appointed by the Senate on Thursday.

House Republican leaders have scheduled an aviation security bill for action on Wednesday, October 31. The issue of federalizing screening operations at airports is likely to be the subject of heated debate and possible amendments.

Members of the Senate and House Democrats turned up the heat on House leadership this week, claiming that the aviation security bill was stalled because there were not sufficient votes to prevent federalization of airport screeners.

On October 11 the Senate unanimously passed a bill (S. 1447) that would place 28,000 government screeners and law enforcement officials at 142 of the nation's largest airports (AASHTO Journal, October 12). A mirror version of the bill has been introduced in the House (H.R. 2951), and supporters claim that with 14 to 15 Republicans on their side, they have enough votes to clear the measure.

House Transportation and Infrastructure Committee Chairman Don Young (R-AK) last week introduced his version of an aviation security bill (H.R. 3150), which allows the administration to determine the extent of federal personnel that are used to screen passengers and baggage, and would allow private contractors to be hired. Young's bill has the support of Republican leadership in the House, who worry about adding thousands of people to the federal payroll. The bill received endorsement from the Administration this week via a letter from President Bush to Speaker Dennis Hastert, stating that it was "the quickest, most effective way" to increase aviation security. However, the Administration has not stated it would veto the federalization approach, should that be the ultimate decision.

Rep. James Oberstar (D-MN), ranking member of the House Transportation and Infrastructure Committee, has introduced the Democratic aviation security bill (H.R. 3110) which would fully federalize airport security screening personnel and operations.

DOT Responsibility

Another issue that must be resolved between the House and Senate is which federal agency should oversee airport security operations. When the Senate bill was under consideration on the floor an amendment approved that transferred security responsibility from the Department of Transportation to the Department of Justice.

Eight state governors are urging increased capital funding and new financing tools to help fund intercity passenger rail corridors.

In a letter to Secretary of Transportation Norman Mineta, the governors stress that strong federal leadership is needed to "preserve and further develop intercity passenger rail in the 21st Century." Calling the Northeast Corridor and its feeder lines "environmentally sound and energy efficient" the governors note that the recent disruption of air service "vividly illustrates the importance of intercity passenger rail in providing critical mobility."

The governors state that high priority should be assigned to maintaining the Northeast Corridor in safe condition and escalating needed safety improvements of critical tunnels in New York and Baltimore. The letter urges that the federal government be a "strong, consistent partner" in policy leadership and "stable, long-term funding" just as it has for highways, public transportation, aviation and water transportation systems.

States have invested hundreds of millions of dollars in projects to improve service, the letter states, and successes are being achieved nationwide. However, they state "these successes are now being jeopardized by the cumulative effects of competing demands on inadequate capital resources. New approaches to generating significant and sustained capital investment are required . . ."

The governors specifically ask the Administration to commit federal policy support for passenger rail; ensure dedicated capital funding "while preserving the integrity of the Highway Trust Fund;" and create new program and financing tools for funding and development of corridors.

The Environmental Protection Agency has announced it will delay its regulations on a controversial water pollution control program to allow time to reconsider some of the issues that have resulted in litigation.

The regulations that prompted both Congressional concern and judicial intervention are the revisions to the "Total Maximum Daily Load" and National Pollutant Discharge Elimination System Program that were issued in July 2000. In August, the EPA proposed to delay the rulemaking by 18 months, and also to delay until October 1, 2002 the date by which states must submit lists of impaired waters to the EPA. This delay is intended to allow states to use new guidance now being formulated by the agency.

The original rulemaking generated considerable controversy which resulted in action by Congress prohibiting the EPA from implementing the regulations. In the meantime, a report by the National Research Council, has raised questions about the methodology of the program.

The Environmental Protection Agency on Wednesday sent a report to President Bush that identifies several regulatory changes to help moderate gas price spikes that occur in the summer months.

EPA shows that in 2000 and 2001, gas prices rose sharply during the transition periods when fuel producers change from winter to summer grade cleaner-burning gasoline, especially in the Midwest.

EPA Administrator Christie Whitman said, "I am concerned that when supplies fall short, due to increased demand or pipeline disruptions, the gasoline prices increase dramatically, as we saw this past summer. EPA requires the use of summer blend fuels to minimize air pollution during the hot summer months." Whitman added, "While many factors contributed to the gasoline price spikes this year, we want to ensure that using summer blend fuel is not a contributor to price hikes."

The agency identified two major issues related to blended fuels: the need for greater flexibility in the winter to summer grade reformulated gasoline transition process; and the growing number of state and local blended fuels programs and their challenges to the gas distribution system.

The report to the President specifically outlines the short-term actions that EPA will take to provide a more orderly transition between winter and summer gasoline:

• Propose new regulations that allow gasoline distribution terminals to transition from winter to summer grade fuels more gradually;
• Provide fuel producers with more flexibility in meeting fuel specifications in the winter to summer transition;
• Allow certain fuels to be reclassified as reformulated gasoline to address unexpected disruption issues; and
• Propose to simplify reformulated gasoline accounting and reporting requirements.

The Arizona Department of Transportation on Wednesday reported work zone crashes along the Superstition Freeway (US 60) have dropped 60 percent since August when the new double fine law for speeding went into effect on the state highway system.

Under the new law, fines for speeding in work zones are doubled only when workers are present. A study of work zone crashes on the 13-mile US 60 construction project in the Phoenix area shows 37 crashes occurred in the 60 days before the double fine signs were posted, and 15 crashes occurred in the 60 days after the signs went up.

"We want to keep the traveling public and the workers safe," said ADOT director Victor Mendez. "The driving conditions change when you're in a work zone and it's encouraging to see fewer crashes since the double fine signs have been put to use. Drivers seem to be getting the message to slow down."

President Dean Carlson made the following appointments to an AASHTO committee:

Freddie L. Simmons, Florida Department of Transportation, appointed chair to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

James Byrnes, Connecticut Department of Transportation, appointed as a Region 1 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Joseph M. White, Maryland State Highway Administration, appointed as a Region 1 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Gary C. Williams, Maine Department of Transportation, appointed as a Region 1 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Charlie Brown, North Carolina Department of Transportation, appointed as a Region 2 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Russell G. Daly, Florida Department of Transportation, appointed as a Region 2 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Thrulow W. Parish, Louisiana Department of Transportation and Development, appointed as a Region 2 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Brian C. Logan, Kansas Department of Transportation, appointed as a Region 3 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Don Martin, Missouri Department of Transportation, appointed as a Region 3 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

William G. Shuman, Iowa Department of Transportation, appointed as a Region 3 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Diane C. Pierzinski, California Department of Transportation, appointed as a Region 4 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Judy Skeen, Texas Department of Transportation, appointed as a Region 4 representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.

Roger G. Petzold, Federal Highway Administration, appointed as FHWA representative to the Standing Committee on Highways Spatial Information Task Force for a three-year term.