Top News

• Bush Approves SAFETEA-LU Changes

• Senate Votes Down Lieberman-Warner Climate Security Act; Consumer-First Energy Act

• U.S. Department of Transportation Unveils New Program to Fight Border Congestion

Also in the News: ATA Joins in Letter to Congressional Leadership Urging Reforms to Energy Commodities Markets; Congress Aims to Eliminate Biodiesel Loophole; U.S. Secretary of Transportation Mary E. Peters Announces Over $133 Million in Funding to Fight Traffic in the Twin Cities; Manufacturing Contracted Slightly in May
 

BUSH APPROVES SAFETEA-LU CHANGES
President Bush on June 6 signed into law H.R. 1195, making a series of technical and substantive changes to the 2005 SAFETEA-LU surface transportation law. This bill is a collection of technical fixes and clarifying language that will allow action on projects to relieve traffic congestion, enhance highway safety and create jobs.


 

SENATE VOTES DOWN LIEBERMAN-WARNER CLIMATE SECURITY ACT; CONSUMER-FIRST ENERGY ACT
The U.S. Senate voted 48 to 36 June 6 to defeat the cloture motion on the Lieberman-Warner Climate Security Act. The bill would have capped carbon dioxide emissions from power plants, refineries and factories, and sought to cut greenhouse gas emissions by 71 percent by 2050.

Senate Republicans also voted 51 to 43 this week to block the Consumer-First Energy Act, an energy bill that would have imposed a windfall profits tax and ended $17 billion in tax breaks for oil companies.

The Consumer-First Energy Act would have created a 25 percent windfall profits tax on companies that don’t invest in renewable fuels or electricity production. It also would zero out some $17 billion in tax breaks for the oil industry and use the revenue to invest in an Energy Independence and Security Trust Fund.

The bill also reportedly aimed to curb speculation by increasing margin requirements for those investing in futures trades. President Bush had threatened to veto the bill if it passed.

ATA JOINS IN LETTER TO CONGRESSIONAL LEADERSHIP URGING REFORMS TO ENERGY COMMODITIES MARKET
The American Trucking Associations joined 18 transportation-related organizations yesterday in sending a letter to Congressional Leadership urging immediate reforms to the energy commodities market to stop surging oil prices and prevent further decline in the U.S. economy. In a letter sent to Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, House Speaker Nancy Pelosi and House Minority Leader John Boehner, the groups recommended meaningful reforms that included: closing all loopholes that allow institutional investors to avoid limits on the size of their investments; ensuring all energy traders are subject to limits imposed on U.S. exchanges; and increasing margin requirements and imposing appropriate disclosure and financial requirements on institutional investors. “This country needs a fair, transparent and balanced energy commodities market, not one that is skewed to benefit speculators and institutional investors,” the organizations said in the letter. Leading energy experts across the country have said that recent, unprecedented jumps in crude oil prices are due, in large measure, to rampant speculation in the energy commodities markets.

CONGRESS AIMS TO ELIMINATE BIODIESEL LOOPHOLE
Two bills currently circulating in Congress would eliminate a loophole that permits foreign producers of biodiesel to get a tax credit if they “splash” their product with petroleum-based diesel in the United States and then sell it overseas.

One provision to tighten the “splash-and-dash” loophole passed the House as part of the Energy and Tax Extenders Act of 2008. The other was introduced last month by Rep. John Shadegg (R-Ariz.) and referred to the House Ways and Means Committee.

Shadegg estimated the tax loophole cost the American taxpayers $300 million in lost revenue last year. He said that figure could jump to $900 million this year. The House bill passed May 21 would not allow a tax credit for any foreign-produced biodiesel or biodiesel not sold in the United States. The Shadegg bill would allow foreign-produced biodiesel still to be eligible for the tax credit, but only if the “splashed” biodiesel is sold in the United States.

American Trucking Associations opposes the tax credit for biodiesel sold outside the United States.

 

DOT

U.S. DEPARTMENT OF TRANSPORTATION UNVEILS NEW PROGRAM TO FIGHT BORDER CONGESTION
The U.S. Department of Transportation announced June 2 that it is seeking innovative ways to fight congestion at some of the nation’s busiest border crossings.

U.S. Transportation Secretary Mary E. Peters said that the Department is requesting proposals for innovative new approaches to ending traffic tie ups at some of the nation’s most congested border crossings. She added that the Department would select at least two projects each along the Canadian and Mexican borders.

Peter’s said the effort was needed because, over the last two decades, the value of freight shipments among the US, Canada and Mexico has risen by 170 percent, growing an average of 8 percent annually.

Peters said in 2007 US-bound traffic from Canada experienced delays up to three hours at many crossings, costing businesses more than $14 billion annually. On the Mexico side, San Diego County loses $271 million in annual revenue due to delays at the border.

U.S. SECRETARY OF TRANSPORTATION MARY E. PETERS ANNOUNCES OVER $133 MILLION IN FUNDING TO FIGHT TRAFFIC IN THE TWIN CITIES

U.S. Transportation Secretary Mary E. Peters awarded $133.3 million in federal funds to help cut congestion on the I-35W corridor in Minnesota on June 13. Peters said the funds would be used to create faster commutes, more parking and to improve transit in the Twin Cities area.

“Our economic vitality and prosperity as a nation are increasingly becoming dependent on our willingness to embrace new transportation strategies,” Secretary Peters said in a statement.

Secretary Peters noted that the funding is being made available through the Urban Partnerships program, designed to encourage communities to embrace new approaches to cutting congestion.

The Urban Partnership Program is part of the Department’s comprehensive initiative to address congestion throughout the nation’s transportation system. In addition to the Twin Cities region, the Department has entered into partnerships with Chicago, Los Angeles, Miami, San Francisco and Seattle.

MANUFACTURING CONTRACTED SLIGHTLY IN MAY
The Institute for Supply Management reported June 2 that its index of manufacturing activity rose to 49.6 in May from 48.6 in April. While a reading below 50 indicates the sector contracted, the performance was better than the 47.9 expected by economists. Norbert J. Ore, who heads the committee that generates the index, said, “Manufacturers find themselves caught between rising costs and weakening demand in many industries. Exports continue strong due to the weak dollar — without the weak dollar the story would be much more negative in manufacturing.”