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69-006

110TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

2d Session

110-904

--TRANSPORTATION ENERGY SECURITY AND CLIMATE CHANGE MITIGATION ACT OF 2007

SEPTEMBER 29, 2008- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. OBERSTAR, from the Committee on Transportation and Infrastructure, submitted the following

R E P O R T

together with

MINORITY VIEWS

[To accompany H.R. 2701]

[Including cost estimate of the Congressional Budget Office]

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I--DEPARTMENT OF TRANSPORTATION
Sec. 101. Center for climate change and environment.
TITLE II--HIGHWAYS AND TRANSIT
Subtitle A--Public Transportation
Sec. 201. Grants to improve public transportation services.
Sec. 202. Increased Federal share for Clean Air Act compliance.
Sec. 203. Commuter rail transit enhancement.
Subtitle B--Federal-Aid Highways
Sec. 251. Increased Federal share for CMAQ projects.
Sec. 252. Distribution of rescissions.
Sec. 253. Sense of Congress regarding use of complete streets design techniques.
TITLE III--RAILROAD AND PIPELINE TRANSPORTATION
Subtitle A--Railroads
Sec. 301. Green locomotive grant program.
Sec. 302. Capital grants for railroad track.
Subtitle B--Pipelines
Sec. 311. Feasibility studies.
TITLE IV--MARITIME TRANSPORTATION
Subtitle A--General Provisions
Sec. 401. Short sea transportation initiative.
Sec. 402. Short sea shipping eligibility for capital construction fund.
Sec. 403. Report.
Sec. 404. Green ports initiative.
Subtitle B--Maritime Pollution
Sec. 451. References.
Sec. 452. Definitions.
Sec. 453. Applicability.
Sec. 454. Administration and enforcement.
Sec. 455. Certificates.
Sec. 456. Reception facilities.
Sec. 457. Inspections.
Sec. 458. Amendments to the protocol.
Sec. 459. Penalties.
Sec. 460. Effect on other laws.
TITLE V--AVIATION
Sec. 501. CLEEN engine and airframe technology partnership.
Sec. 502. Environmental mitigation pilot program.
TITLE VI--PUBLIC BUILDINGS
Subtitle A--General Services Administration
Sec. 601. Public building energy efficient and renewable energy systems.
Sec. 602. Public building life-cycle costs.
Sec. 603. Installation of photovoltaic system at department of energy headquarters building.
Subtitle B--Coast Guard
Sec. 631. Prohibition on incandescent lamps by Coast Guard.
Subtitle C--Architect of the Capitol
Sec. 651. Capitol complex photovoltaic roof feasibility study.
Sec. 652. Capitol complex E-85 refueling station.
Sec. 653. Energy and environmental measures in Capitol complex master plan.
Sec. 654. Capitol Power Plant.
TITLE VII--WATER RESOURCES AND EMERGENCY MANAGEMENT PREPAREDNESS
Subtitle A--Water Resources
Sec. 701. Policy of the United States.
Sec. 702. 21st Century Water Commission.
Sec. 703. Improving hydropower capabilities.
Sec. 704. Study of Potential Impacts of Climate Change on Water Resources and Water Quality.
Sec. 705. Impacts of climate change on Corps of Engineers projects.
Subtitle B--Emergency Management
Sec. 731. Effects of climate change on FEMA preparedness, response, recovery, and mitigation programs.

SEC. 2. FINDINGS AND PURPOSES.

TITLE I--DEPARTMENT OF TRANSPORTATION

SEC. 101. CENTER FOR CLIMATE CHANGE AND ENVIRONMENT.

TITLE II--HIGHWAYS AND TRANSIT

Subtitle A--Public Transportation

SEC. 201. GRANTS TO IMPROVE PUBLIC TRANSPORTATION SERVICES.

SEC. 202. INCREASED FEDERAL SHARE FOR CLEAN AIR ACT COMPLIANCE.

SEC. 203. COMMUTER RAIL TRANSIT ENHANCEMENT.

`CHAPTER 285--COMMUTER RAIL TRANSIT ENHANCEMENT

`Sec.
`28501. Definitions
`28502. Surface Transportation Board mediation of trackage use requests.
`28503. Surface Transportation Board mediation of rights-of-way use requests.
`28504. Applicability of other laws.
`28505. Rules and regulations.

`Sec. 28501. Definitions

`Sec. 28502. Surface Transportation Board mediation of trackage use requests

`Sec. 28503. Surface Transportation Board mediation of rights-of-way use requests

`Sec. 28504. Applicability of other laws

`Sec. 28505. Rules and regulations

`285. COMMUTER RAIL TRANSIT ENHANCEMENT
28501'.

Subtitle B--Federal-Aid Highways

SEC. 251. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.

SEC. 252. DISTRIBUTION OF RESCISSIONS.

SEC. 253. SENSE OF CONGRESS REGARDING USE OF COMPLETE STREETS DESIGN TECHNIQUES.

TITLE III--RAILROAD AND PIPELINE TRANSPORTATION

Subtitle A--Railroads

SEC. 301. GREEN LOCOMOTIVE GRANT PROGRAM.

SEC. 302. CAPITAL GRANTS FOR RAILROAD TRACK.

`CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

`Sec.
`22301. Capital grants for railroad track.

`Sec. 22301. Capital grants for railroad track

`223. CAPITAL GRANTS FOR RAILROAD TRACK
22301'.

Subtitle B--Pipelines

SEC. 311. FEASIBILITY STUDIES.

TITLE IV--MARITIME TRANSPORTATION

Subtitle A--General Provisions

SEC. 401. SHORT SEA TRANSPORTATION INITIATIVE.

`CHAPTER 556--SHORT SEA TRANSPORTATION

`Sec. 55601. Short sea transportation program.
`Sec. 55602. Cargo and shippers.
`Sec. 55603. Financing of short sea transportation projects.
`Sec. 55604. Interagency coordination.
`Sec. 55605. Research on short sea transportation.
`Sec. 55606. Short sea transportation defined.

`Sec. 55601. Short sea transportation program

`Sec. 55602. Cargo and shippers

`Sec. 55603. Financing of short sea transportation projects

`Sec. 55604. Interagency coordination

`Sec. 55605. Research on short sea transportation

`Sec. 55606. Short sea transportation defined

`556. Short Sea Transportation
55601'.

SEC. 402. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION FUND.

SEC. 403. REPORT.

SEC. 404. GREEN PORTS INITIATIVE.

Subtitle B--Maritime Pollution

SEC. 451. REFERENCES.

SEC. 452. DEFINITIONS.

SEC. 453. APPLICABILITY.

SEC. 454. ADMINISTRATION AND ENFORCEMENT.

SEC. 455. CERTIFICATES.

SEC. 456. RECEPTION FACILITIES.

SEC. 457. INSPECTIONS.

SEC. 458. AMENDMENTS TO THE PROTOCOL.

SEC. 459. PENALTIES.

SEC. 460. EFFECT ON OTHER LAWS.

`SEC. 15. EFFECT ON OTHER LAWS.

TITLE V--AVIATION

SEC. 501. CLEEN ENGINE AND AIRFRAME TECHNOLOGY PARTNERSHIP.

`Sec. 47511. CLEEN engine and airframe technology partnership

`47511. CLEEN engine and airframe technology partnership.'.

SEC. 502. ENVIRONMENTAL MITIGATION PILOT PROGRAM.

TITLE VI--PUBLIC BUILDINGS

Subtitle A--General Services Administration

SEC. 601. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE ENERGY SYSTEMS.

`Sec. 3313. Use of energy efficient lighting fixtures and bulbs

`3313. Use of energy efficient lighting fixtures and bulbs.
`3314. Maximum period for utility services contracts.
`3315. Delegation.
`3316. Report to Congress.
`3317. Certain authority not affected.'.

`Sec. 3314. Maximum period for utility service contracts

SEC. 602. PUBLIC BUILDING LIFE-CYCLE COSTS.

SEC. 603. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT OF ENERGY HEADQUARTERS BUILDING.

Subtitle B--Coast Guard

SEC. 631. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD.

Subtitle C--Architect of the Capitol

SEC. 651. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY STUDY.

SEC. 652. CAPITOL COMPLEX E-85 REFUELING STATION.

SEC. 653. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL COMPLEX MASTER PLAN.

SEC. 654. CAPITOL POWER PLANT.

TITLE VII--WATER RESOURCES AND EMERGENCY MANAGEMENT PREPAREDNESS

Subtitle A--Water Resources

SEC. 701. POLICY OF THE UNITED STATES.

SEC. 702. 21ST CENTURY WATER COMMISSION.

SEC. 703. IMPROVING HYDROPOWER CAPABILITIES.

SEC. 704. STUDY OF POTENTIAL IMPACTS OF CLIMATE CHANGE ON WATER RESOURCES AND WATER QUALITY.

SEC. 705. IMPACTS OF CLIMATE CHANGE ON CORPS OF ENGINEERS PROJECTS.

Subtitle B--Emergency Management

SEC. 731. EFFECTS OF CLIMATE CHANGE ON FEMA PREPAREDNESS, RESPONSE, RECOVERY, AND MITIGATION PROGRAMS.

PURPOSE OF THE LEGISLATION

H.R. 2701, the `Transportation Energy Security and Climate Change Mitigation Act of 2007', as amended, promotes energy efficient transportation and public buildings, creates incentives for the use of alternative fuel vehicles and renewable energy, and ensures sound water resource and natural disaster preparedness planning.

BACKGROUND AND NEED FOR LEGISLATION

According to the U.S. Environmental Protection Agency (`EPA'), 27.7 percent of the total greenhouse gas emissions produced by the United States come from the transportation sector, second only to electricity generation. The U.S. Department of Energy (`DOE') reports that the carbon dioxide emissions from the transportation sector grew 25.4 percent between 1990 and 2006, or an average of 1.4 percent each year.

The most recent DOE data show that transportation produces more metric tons of energy-related carbon dioxide than the residential and commercial sectors, and almost as much as the industrial sector. Nearly all of these transportation-related emissions come from the use of petroleum products. The transportation sector accounts for 68 percent of total U.S. petroleum consumption, and Americans used almost 14 million barrels of oil each day for transportation purposes in 2006.

The EPA reports that 60 percent of transportation emissions come from gasoline consumption through personal vehicles, with other transportation emissions coming from activities such as diesel fuel combustion in heavy-duty vehicles and jet fuel used in aircraft. As transportation continues to have a profound impact on climate change and the environment, the environment, in turn, will have an impact on our transportation systems. Rising oceans and dangerous weather patterns have the potential to damage our transportation infrastructure and to disrupt daily commuting, travel, commerce, goods movement, and emergency response.

To confront this threat, the Federal Government has implemented a wide array of initiatives, including alternative fuels research and implementation; support for public transit and nonmotorized transportation; programs to improve water quality; air quality and to reduce congestion; and research on environmentally sound railroad technologies. In addition, the Department of Transportation (`DOT') has established the Center for Climate Change and Environmental Forecasting. H.R. 2701 offers the next steps to mitigate the negative impact the transportation sector has on the environment as well as provides effective measures to immediately reduce energy consumption by Federal buildings.

Center for climate change and environment

The Center for Climate Change and Environment was established within the Department of Transportation in 1999 and re-chartered in 2004. It is charged with developing a coordinated approach to DOT's efforts to analyze and implement policies and strategies to reduce greenhouse gas emissions and mitigate climate change.

H.R. 2701 authorizes the Center to plan, coordinate, and implement Department-wide research, strategies, and actions to reduce transportation-related energy use and mitigate the effects of climate change. The bill also requires DOT to establish a clearinghouse to identify and track low-cost solutions to reducing transportation-related energy use, greenhouse gas emissions, and mitigate the effects of climate change.

Public and highway transportation

Public transportation use conserves energy, reduces oil dependence, and improves air quality. Current transit use reduces U.S. petroleum consumption by a total of 1.4 billion gallons of gasoline annually compared to single occupancy automobile use. Public transportation reduces pollution by producing 95 percent less carbon monoxide, more than 92 percent fewer volatile organic compounds (`VOCs') and nearly one-half as much carbon dioxide and nitrogen oxides (`NOX') for every passenger mile traveled compared to traveling with private vehicles. Public transportation reduces annual emissions for pollutants that create smog, VOCs and NOX, by more than 70,000 tons and 27,000 tons respectively compared to single occupancy automobile use.

Most rail transit vehicles emit little or no pollution because they are electrically propelled. Most buses, ferryboats and commuter rail locomotives increasingly use cleaner alternative fuels. If Americans rode transit at the rate of 10 percent of daily travel, the U.S. would reduce its dependence on oil imported from the Persian Gulf by more than 40 percent.

H.R. 2701 authorizes funds to allow transit agencies to provide incentives for commuters to choose transit options and increases the Federal share for alternative fuel transit bus, ferry, or locomotive-related equipment and facilities. The bill also ensures that rescissions of Federal Highway Program contract authority are implemented by the states proportionally.

Railroad and pipeline transportation

In the past 26 years, railroads have made significant fuel efficiency gains. In 2006, one gallon of diesel moved one ton of freight an average of 414 miles: a 76 percent improvement since 1980. This increased fuel efficiency is due to a number of steps taken by the railroad industry including new, high horsepower locomotives, improved information technology systems, reduced idling, and new locomotive crew training programs.

Promoting railroad use of new technologies will alleviate highway congestion and increase fuel savings. A single intermodal train can take up to 280 trucks (the equivalent of more than 1,100 cars) off our highways. The American Association of State Highway and Transportation Officials reports that moving one percent of the long-haul freight from truck to rail could realize fuel savings of approximately 110 million gallons per year and reduce annual greenhouse gas emission by 1.3 million tons. If 10 percent of long-haul freight now moving by truck was transported by rail, annual greenhouse gas emissions would fall by nearly 13 million tons.

Pipelines also present an opportunity for the United States to reduce its greenhouse gas emissions and fuel consumption. Improving the ability of pipelines to transport fuels at a higher pressure than they are currently able can promote greater utilization of pipeline transportation, thereby reducing the demand to transport such fuels by truck.

H.R. 2701 authorizes funds for the purchase of fuel efficient locomotives, provides capital grants for regional and short line railroads to improve their tracks for greater efficiency, and directs the Secretary of Energy and the Secretary of Transportation to conduct feasibility studies for the construction of ethanol pipelines.

Maritime transportation

The U.S. maritime transportation system can reduce pollutants that contribute to global warming by transporting cargo more efficiently and by reducing the emissions that originate in U.S. ports. Short sea transportation is an intermodal service that combines marine and one or more other connecting modes of transportation such as trucks and trains. Greater use of short sea transportation is in the national interest because it helps mitigate congestion on U.S. road and rail infrastructure and reduces related environmental impacts. The U.S. is expected to import 30 million containers in 2010, and 40 million containers annually by 2020. Existing transportation infrastructure cannot handle this growth.

H.R. 2701 establishes a Short Sea Shipping Transportation Program to mitigate landside congestion. The bill also establishes a Green Ports Initiative and implements Annex VI to the International Convention for the Prevention of Pollution from Ships (`MARPOL') which sets limits on Sulfur Oxide and Nitrogen Oxide emissions from ship exhausts and prohibits deliberate emissions of ozone-depleting substances.

Aviation

As demand for aviation services continues to grow, so too does aviation's impact on the environment. The Federal Aviation Administration (`FAA') forecasts that airlines are expected to carry more than one billion passengers by 2015, increasing from approximately 744 million in 2006.

H.R. 2701 establishes the CLEEN Engine and Airframe Technology Partnership to encourage the development, maturing and certification of continuous lower energy, emissions and noise (`CLEEN') engine and airframe technology. In addition, the bill authorizes the FAA to initiate a pilot program to fund six projects at public-use airports that will take promising environmental research concepts that have been proven in the laboratory into the actual airport environment for demonstration.

Public buildings

The Public Building Service (`PBS'), within the General Services Administration, is the largest public real estate organization in the country. PBS has an inventory of over 342 million square feet of workspace for approximately 1.1 million Federal employees located in 2,100 communities. This inventory comprises more than 1,500 government-owned buildings, or approximately 51 percent of GSA's total inventory. The remaining 49 percent of government office space is in privately-owned facilities, leased by GSA.

H.R. 2701 directs the Administrator of General Services to install energy efficient lighting fixtures and light bulbs in newly-constructed or newly-renovated Federal buildings, and use energy efficient and renewable energy systems in Federal buildings to reduce the energy consumption.

Water resources

Climate change could negatively impact water resources as well as water infrastructure. The U.S. Government's interagency climate research program, the U.S. Global Change Research Program, has stated: `In many cases and in many locations, there is compelling scientific evidence that climate changes will pose serious challenges to our water systems.'

H.R. 2701 establishes the 21st Century Water Commission to provide expert scientific guidance on future water supply and demand projections, climate change impacts to our Nation's flood risk and water demand, and associated climate change impacts on water quality. The bill also authorizes studies on how climate change will affect water quality and on the potential for increased hydropower.

SUMMARY OF THE LEGISLATION

Section 1. Short title and table of contents

Section 1 cites the short title of the bill as the `Transportation Energy Security and Climate Change Mitigation Act of 2007', and sets out the table of contents for the bill.

Section 2. Findings and purpose

Section 2 lists the findings and purposes of the Act. Evidence that atmospheric warming and climate change are occurring is unequivocal and our nation's resources are under increasing stress as a result. Transportation and buildings are among the leading sources of greenhouse gas emissions. The purpose of this Act is to strengthen our nation's energy security and mitigate the effects of climate change by promoting energy efficient transportation and public buildings, creating incentives for the use of alternative fuel vehicles and renewable energy, and ensuring sound water resource and natural disaster preparedness planning.

TITLE I--DEPARTMENT OF TRANSPORTATION

Section 101. Center for Climate Change and the Environment

Subsection (a) authorizes the Department of Transportation's Center for Climate Change and Environment to plan, coordinate, and implement Department-wide research, strategies, and actions to reduce transportation-related energy use and mitigate the effects of climate change. This subsection requires the Center to establish a clearinghouse to identify and track low-cost solutions to reducing transportation-related energy use, greenhouse gas emissions, and mitigate the effects of climate change.

Subsection (b) requires the Center for Climate Change and Environment to conduct a study to examine the fuel efficiency savings and clean air impacts of major transportation projects; and to identify low-cost solutions to reducing congestion and transportation-related energy use and mitigating the effects of climate change. The study also shall examine the effects of railroad pricing on moving freight from rail to roadways. This subsection requires the Secretary of Transportation to report to the Committee on Transportation and Infrastructure within one year of enactment of the Act regarding low-cost solutions identified in the study.

Subsection (c) authorizes such sums as may be necessary to the Secretary of Transportation for the Center for Climate Change and Environment for fiscal years 2008 to 2011.

TITLE II--HIGHWAYS AND TRANSIT

SUBTITLE A--PUBLIC TRANSPORTATION

Section 201. Grants to improve public transportation services

Section 201 authorizes $850 million from the General Fund for each of fiscal years 2008 and 2009 to allow urban and rural transit agencies to temporarily reduce transit fares and expand transit services. These funds will allow transit agencies to provide incentives for commuters to choose transit options, thereby reducing our nation's transportation-related energy consumption and reliance on foreign oil, as well as decreasing its greenhouse gas emissions. Grants made under this program will have a 100 percent Federal share.

Section 202. Increased Federal share for clean air act compliance

Section 202 increases the Federal share for clean fuel and alternative fuel transit bus, ferry, or locomotive-related equipment or facilities from 90 percent under current law to 100 percent of the net project cost for fiscal years 2008 and 2009.

Section 203. Commuter rail transit enhancement

Section 203 establishes a forum for the mediation of disputes between public transportation authorities and freight railroads at the Surface Transportation Board. The majority of commuter rail systems use rights-of-way owned by private freight railroads for their operations. As the level of freight traffic grows, public transportation authorities and freight railroads are finding it increasingly difficult to reach mutually satisfactory agreements regarding commuter rail service. The lack of a suitable forum for negotiating commuter rail agreements often has hindered vital public transportation services, thus it is critical that procedures be established to assure that both freight and passenger needs can be achieved in a way that is fair, timely and reasonable. This section establishes the Surface Transportation Board as a forum at which either commuter or freight railroads may appeal for adjudication of access issues.

SUBTITLE B--FEDERAL AID HIGHWAYS

Section 251. Increased Federal share for CMAQ projects

Section 251 increases the Federal commitment to congestion mitigation and air quality improvement projects by increasing the Federal share for grants under the Congestion Mitigation Air Quality (`CMAQ') program from 80 percent under current law to 100 percent of the net project cost. The section will assist regions in complying with the Clean Air Act and reducing transportation-related emissions.

Section 252. Distribution of rescissions

Section 252 requires States to implement future rescissions of unobligated Federal-Aid Highway program contract authority proportional to the programmatic allocation received in a given fiscal year, if there is unobligated contract authority available to meet the rescission requirements. States have chosen to apply pervious rescissions disproportionately to cut contract authority for the Congestion Mitigation and Air Quality Improvement (`CMAQ') program and Transportation Enhancement program funds. Both of these programs provide significant environmental benefits.

CMAQ funds represent only about four or five percent of highway apportionments each year. Yet, CMAQ funds have accounted for about 20 percent of total highway funds rescinded in recent years. Comparing the treatment of CMAQ to other highway programs illustrates the disproportionate cuts of these rescissions. In fiscal year 2006, rescissions as a percentage of the total amount made available for programs are:


--------------------------------
                        Percent 
--------------------------------
CMAQ                         55 
Interstate Maintenance       12 
National Highway System       7 
--------------------------------

The Transportation Enhancements program has received similar treatment under recent rescissions. In fiscal year 2006, states rescinded $602 million in Transportation Enhancement funds, which represents 15 percent of all rescissions in that year.

States currently have significant flexibility in implementing the highway programs to meet their respective priorities. The practice of targeting specific highway programs for disproportionate burdens to meet rescission requirements undermines modal choice and the intent of Congress in creating those programs.

Section 253. Sense of Congress regarding use of complete streets design techniques

Section 253 encourages State and local governments to employ `complete streets' policies. Complete streets are streets designed to accommodate all users of a variety of modes of transportation, including environmentally friendly options such as public transit, walking, and bicycling.

TITLE III--RAILROAD AND PIPELINE TRANSPORTATION

Section 301. Green locomotive grant program

Section 301 requires the Secretary to establish a grant program to incentivize railroad carriers and State and local governments to purchase locomotives that exceed Environmental Protection Agency (`EPA') emission standards. In awarding the grants, the Secretary must consider (1) the identified need for such locomotives in the areas served by the applicant; (2) the benefits of the emission reductions of the proposed project; and (3) the extent to which the applicant demonstrates innovative strategies and a financial commitment to increasing energy efficiency and reducing greenhouse gas emissions of its railroad operations. The section authorizes $50 million in appropriations for each of fiscal years 2008 though 2011 to carry out this program.

Section 302. Capital grants for railroad track

Subsection (a) directs the Secretary to establish a capital grant program to assist regional and short line railroads in rehabilitating, preserving, or improving railroad track used primarily for the safe and efficient transportation of freight traffic.

Subsection (b) sets the maximum Federal share for carrying out a project under the section to be 80 percent of the project cost.

Subsection (c) limits the eligibility for assistance under the section to tracks that have been operated or owned by a class II or class III railroad.

Subsection (d) requires that grants provided in the section be used to implement track capital projects as soon as possible.

Subsection (e) requires the Secretary to ensure as a condition of any grant made under this section that the recipient railroad provide a fair arrangement at least as protective of the interests of employees who are affected by the project to be funded with the grant as terms imposed under section 11326(a) of Title 49, as in effect on the date of the enactment of this Chapter.

Subsection (f)(1) requires the Secretary to ensure that laborers and mechanics employed by contractors and subcontractors in construction work financed by a grant made under this section will be paid prevailing wages. The Secretary shall make a grant under this section only after being assured that required labor standards will be maintained on the construction work. Subsection (f)(2) states that wage rates in a collective bargaining agreement negotiated under the Railway Labor Act (45 U.S.C. 151 et seq.) are deemed for purposes of this subsection to comply with subchapter IV of Chapter 31 of Title 40.

Subsection (g) directs the Secretary of Transportation to conduct a study of the projects carried out with funds under the section and report to Congress by March 31, 2009.

Subsection (h) authorizes $250 million in appropriations for each of fiscal years 2008 through 2011 to carry out this capital grant program.

Section 311. Feasibility studies

Section 311 directs the Secretary of Energy, in coordination with the Secretary of Transportation, to conduct feasibility studies for the construction of pipelines dedicated to the transportation of ethanol. The studies will include consideration of the barriers to constructing pipelines dedicated to the transportation of ethanol; market risk; regulatory, and financing options that would mitigate any risk; methods to ensure safe transportation of ethanol and preventative measures to ensure pipeline integrity; and any other factor the Secretary of Energy considers appropriate. This section authorizes appropriations of $1 million for each of fiscal years 2008 and 2009 to carry out this section.

TITLE IV--MARITIME TRANSPORTATION

SUBTITLE A--GENERAL PROVISIONS

Section 401. Short sea transportation initiative

Subsection (a) amends Title 46 of the United States Code by adding Chapter 556, creating sections 55601-55606. Section 55601 requires the Secretary of Transportation to establish a short sea transportation program and to designate short sea transportation projects to mitigate landside congestion. This section also requires the Secretary to designate short sea transportation routes as extensions of the surface transportation system to relieve landside congestion along coastal routes. The Secretary will designate projects if the project offers a waterborne alternative to available landside transportation and provide for transportation services for passengers or freight (or both) that may reduce congestion. The section requires that the Secretary, in consultation with other Federal agencies and state and local governments, develop strategies to encourage the use of short sea transportation of passengers and cargo and to encourage state departments of transportation to develop strategies to incorporate short sea transportation and other marine transportation solutions into their regional and interstate transportation plans.

Section 55602 requires the Secretary of Transportation to enter into memorandums or understanding with the heads of other Federal agencies to transport federally owned or generated cargo using a short sea transportation project. This section also requires the Secretary of Transportation to develop proposals for short-term incentives to encourage the use of short sea transportation. Section 55603 establishes a new loan guarantee program for the construction, reconstruction, or reconditioning of a vessel that will be used for a short sea shipping project. The terms and conditions that apply to loan guarantees made under Chapter 537 of Title 46, United States Code, shall apply to loan guarantees made under this new loan guarantee program. The section limits the total obligations that may be issued for loan guarantees for short sea transportation projects to $2 billion. The section authorizes $25 million for these projects for each of fiscal years 2008 through 2011. Section 55604 requires the Secretary of Transportation to establish a board, comprised of Federal, State, local, and private sector representatives, to identify and seek solutions to impediments hindering effective use of short sea transportation. Section 55605 authorizes the Secretary to conduct research on short sea transportation. Section 55606 defines the term `short sea transportation'.

Subsection (b) includes a clerical amendment to reflect the addition of the new section in Title 46 in the table of contents.

Subsection (c) requires the Secretary of Transportation to issue temporary regulations to implement the requirements of subsection (a) by December 31, 2007, and to issue final regulations by October 1, 2008.

Section 402. Short sea shipping eligibility for Capital Construction Fund

Section 402 amends the Capital Construction Fund (`CCF') program so that vessels engaged in short sea transportation are eligible to participate in this program. CCF is a tax deferral program that allows a vessel owner to deposit funds into the account and defers the taxation on the earnings in the account if the owner uses the funds to build a vessel for short sea transportation. The deferred taxation is recaptured by decreasing the depreciable base of the vessel by the amount of CCF funds used to purchase the vessel.

Section 403. Report

Section 403 requires the Secretary of Transportation to submit to Congress a report on the short sea transportation program that was established by Section 401 and to recommend any further legislative or administrative actions that the Secretary considers appropriate.

Section 404. Green Ports Initiative

Section 404 establishes a Green Ports Initiative to promote the use of technologies in U.S. ports and shipyards to reduce air emissions including particulate matter, nitrogen oxides, sulfur oxides, and carbon monoxides. For example, the program may include the use of electric and low- emission vehicles for cargo handling equipment in a port. It may also include the use of electric shore power so ships will not need to keep their auxiliary engines operating when in port.

This section authorizes the Secretary of Transportation to provide grants and low-cost revolving loans, up to $1 million per loan, on a competitive basis to ports to significantly reduce emissions. The grants and loans shall be prioritized by the Secretary based on projects that will remove the largest amount of pollutants for each dollar provided in the grant or loan. For example, a port, terminal operator, or shipyard may use the grant or loan to repower or buy new diesel engines for their equipment that significantly reduces emissions. The section authorizes $25 million for each of fiscal years 2008 through 2011 for loans and grants made under this section.

SUBTITLE B--MARITIME POLLUTION

Section 451. References

Section 451 clarifies that any reference to a section or other provision within Subtitle B refers to a section or other provision of the Act to Prevent Pollution from Ships (33 U.S.C. 1901 et seq.).

Section 452. Definitions

Section 452 adds a definition of `Administrator' to title 33 U.S.C. 1901 and makes several conforming changes to existing law to reflect the adoption of the International Convention for the Prevention of Pollution from Ships (`MARPOL') Annex VI.

Section 453. Applicability

Section 453 establishes applicability for vessel air emission regulations issued under section 4 of the Act to Prevent Pollution from Ships. Under the section, U.S. vessels and foreign vessels that are operating in the territorial sea, in emission control areas, and in areas designated by the Administrator, in consultation with the Secretary of the department in which the Coast Guard is operating, would be required to comply with vessel air emission regulations that are issued by the Coast Guard and EPA.

The section applies Annex VI to the U.S. Exclusive Economic Zone to the extent that this is consistent with international law. The section also authorizes, but does not require, heads of each Federal department or agency to determine that some or all of the requirements apply regarding vessel air emissions for public vessels operated under that department or agency's authority. Section 17 of the Act to Prevention Pollution from Ships already states that any action taken under that Act must be taken in accordance with international law. Therefore, this limitation also applies to the amendments to the Act.

Under MARPOL Annex VI, signatory nations are only required to apply vessel air emission standards regarding nitrogen oxide to vessels with marine engines rated above 130 kilowatts, or 175 horsepower. The Committee does not intend to apply standards under MARPOL Annex VI to any vessel equipped with an engine below this threshold.

Section 454. Administration and enforcement

Section 454 requires the Secretary of the department in which the Coast Guard is operating and the Administrator of the Environmental Protection Agency to prescribe regulations to carry out Annex VI of the MARPOL Convention. In accordance with Annex VI, the section also prohibits any standard regarding the emission of volatile organic compounds from vessels from taking effect until six months after the International Maritime Organization has been notified that such standards have been established. Section 455 prohibits any person other than the Administrator of the Environmental Protection Agency (`EPA') from issuing an Engine International Air Pollution Prevention Certificates on behalf of the United States for U.S.-flag vessels and requires that such certificates are issued consistently with regulations and requirements under the Clean Air Act.

Section 455. Certificates

Section 455 requires that each vessel greater than 400 gross tons and each offshore terminal be issued an International Air Pollution Prevention Certificate to certify that the equipment in the vessel is in compliance with all applicable requirements under MARPOL Annex VI, and an Engine International Air Pollution Prevention Certificate to certify that each engine or engine group is in compliance with NOX standards under Regulation 13 of Annex VI to the Convention. This section also includes language that recognizes, for purposes of compliance under U.S. law, a certificate issued by another nation that is party to the MARPOL protocol. Section 5(b) of the Act to Prevent Pollution from Ships states that `[a] certificate issued by a country which is a party to the MARPOL Protocol has the same validity as a certificate issued by the Secretary under the authority of the MARPOL protocol.' This subsection also applies to certificates issued by foreign governments under MARPOL Annex VI.

Section 456. Reception facilities

Section 456 requires the Secretary of the department in which the Coast Guard is operating or the EPA Administrator to prescribe regulations that require ports and terminals to provide or ensure the availability of adequate reception facilities for ozone depleting substances, equipment containing such substances and exhaust cleaning residues. The section also authorizes the Coast

Guard to deny a vessel entry into a port or terminal that, in the Coast Guard's determination, is not in compliance with such regulations.

Section 457. Inspections

Section 457 authorizes the Coast Guard to carry out inspections to verify that vessels are in compliance with requirements under MARPOL Annex VI and to carry out enforcement actions for violations of such requirements and regulations.

Section 458. Amendment to the protocol

Section 458 makes a conforming change to current law to reflect the adoption of MARPOL Annex VI.

Section 459. Penalties

Section 459 authorizes the Administrator of EPA, in addition to the Coast Guard, to assess civil penalties for violations of Annex VI.

Section 460. Effect on other laws

Section 460 includes language that clarifies that authorities, requirements, and remedies that are provided under the Act to Prevent Pollution from Ships do not amend or repeal any authorities, requirements, and remedies provided under any other provision of law, including the Clean Air Act of 1990 and the rights of States under that Act.

TITLE V--AVIATION

Section 501. CLEEN Engine and Airframe Technology Partnership

Subsection (a) amends Chapter 475 of Title 49 of the United States Code by adding section 47511. The subsection directs the FAA to enter into a ten-year cooperative agreement using a competitive process, with an institution, entity, or consortium to carry out a program for the development, maturing, and certification of CLEEN engine and airframe technology.

Subsection (b) defines CLEEN as continuous lower energy, emissions, and noise engine and airframe technology.

Subsection (c) sets the goals of the CLEEN engine and airframe technology partnership as: (1) Development of certifiable aircraft technology that reduces greenhouse gas emissions by increasing aircraft fuel efficiency by 25 percent relative to 1997 subsonic jet aircraft technology; (2) development of certifiable engine technology that reduces landing and takeoff cycle nitrogen oxide emissions by 50 percent, without increasing other gaseous or particle emissions, over the International Civil Aviation Organization standard adopted in 2004; (3) development of certifiable aircraft technology that reduces noise levels by 10 decibels at each of the 3 certification points relative to 1997 subsonic jet aircraft technology; (4) determination of the feasibility of the use of alternative fuels in aircraft systems, including successful demonstration and quantification of the benefits of such fuels; and (5) determination of the extent to which new engine and aircraft technologies may be used to retrofit or re-engine aircraft to increase the integration of retrofitted and re-engined aircraft into the commercial fleet.

Subsection (d) creates a research program to develop jet fuel from clean coal and designates by a competitive process an institution known as the Center of Excellence for Coal to Jet Fuel Research to work in collaboration with Federal agencies and educational and research institutions, through grants or other measures as described in 106(l)(6) of title 49, United States Code. The subsection includes language to allow as a purpose of the program the capture and sequestration of the carbon dioxide produced in the conversion process of coal to jet fuel.

Subsection (e) authorizes $111 million for the cooperative agreement.

Subsection (f) authorizes the FAA Administrator to publish an annual report on the program established under this section, beginning in 2009 through the completion of the program.

Section 502. Environmental mitigation demonstration pilot program

Section 502 establishes a pilot program to allow the FAA to fund six projects at public-use airports that would take promising environmental research concepts that have been proven in the laboratory into the actual airport environment for demonstration. Eligible projects would demonstrate whether research would measurably reduce or mitigate aviation impacts on noise, air quality or water quality in the airport environment. Grants will be awarded based on the greatest reductions in aircraft noise, airport emissions, or water quality impacts. This section authorizes up to $2.5 million per project, and the Federal share for each project is 50 percent.

TITLE VI--PUBLIC BUILDINGS

SUBTITLE A--GENERAL SERVICES ADMINISTRATION

Section 601. Public building energy efficient and renewable energy systems

Subsection (a) amends section 3307(b) of the Public Buildings Act (40 U.S.C. 601-619) by inserting new paragraph (7). The paragraph requires the Administrator of General Services to include in any prospectus of a proposed facility being transmitted to Congress for approval an estimate of future energy performance of the building or space and a specific description of the use of energy efficient and renewable energy systems, including photovoltaic systems.

Subsection (b) amends section 3307 of the Public Buildings Act by adding subsection (f). The subsection authorizes the Administrator of General Services to include minimum performance requirements requiring energy efficiency and use of renewable energy in leased space.

Subsection (c) amends Chapter 33 of Title 40, United States Code, by adding new section 3313. Section 3313(a) directs the Administrator of General Services to equip each public building significantly altered or constructed, to the maximum extent practicable, with lighting fixtures and bulbs that are energy efficient. Section 3313(b) directs the Administrator of General Services in normal routine maintenance to replace lighting fixtures or bulbs with energy efficient lighting fixtures and bulbs. Section 3313(c) authorizes the Administrator of General Services in making a determination under this section to consider lifecycle costing, equipment compatibility, aesthetics, and productivity. Section 3313(d) identifies a lighting fixture or bulb to be energy efficient if the fixture or bulb is certified under the Energy Star Program or the Administrator determines the fixture or bulb to be energy efficient. Section 3313(e) identifies significantly altered buildings as buildings that require a prospectus under section 3307. Section 3313(f) establishes an effective date for the requirement in this section to take effect as of one year after enactment.

Subsection (d) amends Chapter 33 of Title 40 by adding section 3314, which authorizes the Administrator of General Services to sign utility contracts for a period of not more than 30 years. The 30-year time frame allows GSA more time to hedge against increasing electricity prices in the market.

Subsection (e) amends section 3310 of the Public Buildings Act by inserting a new section 3 that authorizes the Administrator of General Services to include in any solicitation for a lease requiring a prospectus required under section 3307 of title 40 an evaluation factor that considers the extent to which the offeror will promote energy efficiency and use renewable energy.

Section 602. Public buildings life-cycle costs

Section 602 amends the National Energy Conservation Policy Act by extending the life-cycle cost calculation period from 25 years to 40 years.

Section 603. Installation of photovoltaic system at Department of Energy headquarters

Subsection (a) directs the Administrator of General Services to install a photovoltaic system for the headquarters building of the Department of Energy located at 1000 Independence Avenue, S.W., Washington, DC.

Subsection (b) makes available from the Federal Building Fund, established by section 592 of Title 40, $30 million to carry out this section.

SUBTITLE B--COAST GUARD

Section 631. Prohibition of incandescent lamps by Coast Guard

Subsection (a) prohibits the purchase or installation of incandescent lamps in a Coast Guard facility by or on behalf of the Coast Guard except as provided in subsection (b).

Subsection (b) authorizes the purchase, installation, or use of a general service incandescent lamp for a Coast Guard facility whenever the application of a general service incandescent lamp is necessary due to purpose or design, including medical, security, and industrial applications; reasonable due to the architectural or historical value of a light fixture installed before January 1, 2009; or the Commandant of the Coast Guard determines that operational requirements necessitate the use of a general service incandescent lamp.

Subsection (c) defines the term `facility' to exclude a vessel or aircraft of the Coast Guard.

SUBTITLE C--ARCHITECT OF THE CAPITOL

Section 651. Capitol complex photovoltaic roof feasibility study

Subsection (a) authorizes the Architect of the Capitol to perform a feasibility study regarding construction of a photovoltaic roof on the Rayburn House Office Building.

Subsection (b) requires the Architect of the Capitol to transmit to the Committee on Transportation and Infrastructure a report on the results of the feasibility study and recommendations regarding the construction of a photovoltaic roof on top of the Rayburn House Office Building.

Subsection (c) authorizes such sums as necessary to carry out this section in fiscal year 2008.

Section 652. Capitol complex E-85 refueling station

Subsection (a) authorizes the Architect of the Capitol to construct a fuel tank and pumping system for E-85 fuel at or within close proximity to the Capitol Grounds Fuel Station.

Subsection (b) authorizes the E-85 fuel tank and pumping system to be available for use by all legislative branch vehicles capable of operating with E-85 fuel, provided that any legislative branch vehicles that use the system reimburse the Architect of the Capitol.

Subsection (c) authorizes such sums as necessary to carry out this section in FY 2008.

Section 653. Energy and environmental measures in Capitol Complex Master Plan

Subsection (a) authorizes the Architect of the Capitol, to the maximum extent practicable, to include energy efficient measures, climate change mitigation measures, and other appropriate environmental measures in the Capitol Complex Master Plan.

Subsection (b) requires the Architect of the Capitol to transmit a report on the energy efficiency measures, climate change mitigation measures, and other appropriate environmental measures included in the Capitol Complex Master Plan to the Committee on Transportation and Infrastructure and the Committee on Rules and Administration of the Senate.

Section 654. Capitol power plant

Subsection (a) authorizes the Architect of the Capitol, for the purposes of reducing carbon dioxide emissions, to install technologies for the capture and storage or use of carbon dioxide emitted from the Capitol power plant as a result of burning coal.

Subsection (b) defines the Capitol Power Plant as the power plant constructed in the vicinity of the Capitol Complex in the District of Columbia pursuant to the Act of April 28, 1904 and designated under 2 U.S.C. 2162.

TITLE VII--WATER RESOURCES AND EMERGENCY MANAGEMENT PREPAREDNESS

SUBTITLE A--WATER RESOURCES

Section 701. Policy of the United States

Section 701 establishes a national policy for the construction and management of Federal water resources projects.

Section 702. 21st Century Water Commission

Section 702 establishes the 21st Century Water Commission to provide expert scientific guidance on future water supply and demand projections, climate change impacts to our Nation's flood risk and water demand, and associated climate change impacts on water quality. The section creates a `21st Century Water Commission' to study current Federal, State, and local water resources management programs and activities, and to ensure that the nation is adequately prepared to meet the water supply, water quality, and water resources demands of the next 50 years.

Section 703. Improving hydropower capabilities

Section 703 directs the U.S. Army Corps of Engineers to study the potential for increased hydropower at existing U.S. Army Corps of Engineers facilities. The section directs the Corps of Engineers to undertake a study of potential increased hydropower generating capabilities at existing Corps facilities and report to Congress within one year regarding the findings.

Section 704. Study of potential impacts of climate change on water resources and water quality

Subsection (a) directs the Administrator of the U.S. Environmental Protection Agency to enter into an arrangement with the National Academy of Sciences to study the potential effects of climate change on water quality, and to recommend appropriate responses to address potential effects of climate change on water quality, and to recommend appropriate responses to address potential impacts of climate change on water quality, watersheds, and water resources.

Subsection (b) requires the EPA Administrator to transmit to Congress a report on the results of the study under this section within two years.

Section 705. Impacts of climate change on Corps of Engineers projects

Section 705 directs the Secretary of the Army to ensure that all future water resources projects and studies take into account the potential short-term and long-term effects of climate change, and to report to the House and Senate authorizing committees with one year of the Corps implementation of the section.

SUBTITLE B--EMERGENCY MANAGEMENT

Section 731. Effects of climate change on FEMA preparedness, response, recovery, and mitigation programs

Section 731 requires the Administration of the Federal Emergency Management Agency to conduct a comprehensive study of the increase in demand for the Agency's emergency preparedness, response, recovery, and mitigation programs and services that may be reasonably anticipated as a result of an increased number and intensity of natural disasters affected by climate change. The section requires that the study include an analysis of the budgetary and personnel needs of meeting the increased demand for Agency services. The section requires the Administrator to submit a report, within one year, to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate with any legislative recommendations on the study conducted under the section.

LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION

In the 110th Congress, the Committee on Transportation and Infrastructure held a hearing on `Administration Proposals on Climate Change and Energy Independence' on May 11, 2007. On May 13, 2007, Chairman James L. Oberstar introduced H.R. 2701, the `Transportation Energy Security and Climate Change Mitigation Act of 2007'.

On May 16, 2007, the Committee on Transportation and Infrastructure held a hearing on `Climate Change and Energy Independence: Transportation and Infrastructure Issues'. On June 14, 2007, the Committee met in open session to consider H.R. 2701. Chairman James L. Oberstar postponed further proceedings on the bill to allow for adequate time to consider amendments.

On June 20, the Committee met in open session to consider H.R. 2701. The Committee adopted five amendments to H.R. 2701, five amendments were adopted by voice vote. In addition, the Committee adopted an amendment in the nature of a substitute to an amendment by recorded vote. The Committee adopted an amendment, by voice vote, requiring the Center for Climate Change within the Department of Transportation to study the environmental impact of railroad pricing schemes. The Committee adopted an amendment, by voice vote, requiring the Surface Transportation Board (`STB') to conduct commuter rail mediations in a manner consistent with the non-binding procedures the STB currently has in place for freight rail mediations. The Committee adopted an amendment, by voice vote, creating a research program to develop jet fuel from clean coal. The Committee adopted an amendment, by voice vote, after adopting an amendment in the nature of a substitute by recorded vote, directing the Architect of the Capitol to install technologies to store carbon dioxide or use carbon dioxide. The Committee adopted an amendment, by voice vote, directing the 21st Century Water Commission to suggest strategies for avoiding an increased mandate on State and local governments.

The Committee on Transportation and Infrastructure order the bill, as amended, reported favorably to the House by voice vote with a quorum present.

RECORD VOTES

Clause 3(b) of rule XIII of the House of Representatives requires each committee report to include the total number of votes cast for and against on each roll call vote on a motion to report and on any amendment offered to the measure or matter, and the names of those members voting for and against. There were three recorded votes taken in connection with amendments to H.R. 2701. The Committee ordered H.R. 2701, as amended, reported favorably to the House by voice vote with a quorum present.

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COMMITTEE OVERSIGHT FINDINGS

With respect to the requirements of clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, the Committee's oversight findings and recommendations are reflected in this report.

COST OF LEGISLATION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives does not apply where a cost estimate and comparison prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974 has been timely submitted prior to the filing of the report and is included in the report. Such a cost estimate is included in this report.

COMPLIANCE WITH HOUSE RULE XIII

1. With respect to the requirement of clause 3(c)(2) of rule XIII of the Rules of the House of Representatives, and clause 308(a) of the Congressional Budget Act of 1974, the Committee references the report of the Congressional Budget Office included in the report.

2. With respect to the requirement of clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the performance goals and objectives of this legislation are to promote energy efficient transportation and public buildings, creates incentives for the use of alternative fuel vehicles and renewable energy, and ensures sound water resource and natural disaster preparedness planning.

3. With respect to the requirement of clause 3(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 1974, the Committee has received the enclosed cost estimate for H.R. 2701, as amended, from the Director of the Congressional Budget Office:

U.S. Congress,

Congressional Budget Office,

Washington, DC, July 18, 2007.

Hon. JAMES L. OBERSTAR,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2701, the Transportation Energy Security and Climate Change Mitigation Act of 2007.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Sarah Puro.

Sincerely,

PETER R. ORSZAG.

Enclosure.

H.R. 2701--Transportation Energy Security and Climate Change Mitigation Act of 2007

Summary: H.R. 2701 would authorize the appropriation of about $3.3 billion for programs to reduce environmental emissions from a variety of modes of transportation and to increase the energy efficiency of certain buildings operated by the federal government. The bill would establish several new grant programs to be administered by the Department of Transportation (DOT) for public transportation entities, rail carriers, and certain shippers. The bill also would establish a new commission on water resources and would implement provisions of a treaty to prevent pollution from ships. Further, the bill would require the Architect of the Capitol (AOC), the Department of Energy (DOE), the Environmental Protection Agency (EPA), the Federal Emergency Management Agency (FEMA), and the Army Corps of Engineers to complete studies and reports regarding global warming and energy efficiency. CBO estimates that implementing the bill would incur discretionary costs of $220 million in 2008, $2.6 billion over the 2008-2012 period, and $0.6 billion after 2012, assuming the appropriation of the necessary amounts.

In addition, CBO estimates that, by authorizing the General Service Administration (GSA) to enter into long-term contracts to secure public utility services, H.R. 2701 would increase direct spending by $70 million in 2008, $770 million over the 2008-2012 period, and $830 million over the next 10 years. A provision of the bill to install a photovoltaic system at the headquarters building of DOE would increase the speed of expenditures but not add to direct spending over the 2008-2012 period. Other provisions would have no significant effect on direct spending and would not affect revenues.

CBO has not reviewed subtitle B of title IV for the presence of intergovernmental or private-sector mandates. Section 4 of the Unfunded Mandates Reform Act (UMRA) excludes from the application of that act any legislative provisions that are necessary for the ratification or implementation of international treaty obligations, and CBO has determined that subtitle B falls within that exclusion. The remaining provisions of H.R. 2701 contain no intergovernmental or private-sector mandates as defined in UMRA; the bill would benefit public institutions of higher education and state and local governments.

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2701 is shown in the following table. The costs of this legislation fall within budget functions 300 (natural resources and environment), 400 (transportation), and 800 (general government).

Basis of estimate: For this estimate, CBO assumes that H.R. 2701 will be enacted near the end of fiscal year 2007. CBO assumes that the authorized and necessary amounts will be appropriated each year and that outlays will follow historical rates of spending for similar programs.

Direct spending and revenues

Utility Service Contracts. H.R. 2701 would authorize GSA to sign long-term contracts of up to 30 years to secure public utility services for federal agencies. The bill specifies that GSA could use such contracts to promote the use of renewable energy systems. CBO expects GSA would use this new authority because doing so would help agencies to comply with an existing requirement to increase consumption of electricity that is generated from renewable sources (such as wind and solar energy). Under that requirement, by 2013, agencies must generate 3.75 percent of their electricity use from facilities that use renewable sources and were constructed after 1998. (According to DOE, 1 percent of the electricity consumed currently by federal agencies comes from such facilities.)

Under H.R. 2701, CBO expects that GSA would use long-term contracts to encourage investment in facilities to generate renewable electricity for federal consumption. Upon signing long-term contracts, the government would become obligated to make payments in the future, and consistent with government-wide accounting principles, the budget should record those commitments as new obligations at the time the government enters into such contracts.

 ESTIMATED BUDGETARY IMPACT OF H.R. 2701
-----------------------------------------------------------------------------------------------------------
                                             By fiscal year, in millions of dollars--                      
                                                                                 2008  2009 2010 2011 2012 
-----------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING                                                                                 
Utility Service Contracts:                                                                                 
Estimated Budget Authority                                                        230   210  200  190    0 
Estimated Outlays                                                                  70   150  210  200  140 
Photovoltaic System:                                                                                       
Budget Authority                                                                    0     0    0    0    0 
Estimated Outlays                                                                   6    15    4  -25    0 
Total Changes in Direct Spending:                                                                          
Estimated Budget Authority                                                        230   210  200  190    0 
Estimated Outlays                                                                  76   165  214  175  140 
CHANGES IN SPENDING SUBJECT TO APPROPRIATION                                                               
Public Transportation Grants:                                                                              
Authorization Level                                                               850   850    0    0    0 
Estimated Outlays                                                                 128   383  425  298  230 
Rail Grants:                                                                                               
Authorization Level                                                               300   300  300  300    0 
Estimated Outlays                                                                  46   136  196  240  232 
Maritime Transportation:                                                                                   
Estimated Authorization Level                                                      54    54   54   52    1 
Estimated Outlays                                                                  31    41   47   47   19 
Aviation Programs:                                                                                         
Estimated Authorization Level                                                      21    22   33   50    0 
Estimated Outlays                                                                   6    21   31   41   21 
Commission on Water Resources:                                                                             
Estimated Authorization Level                                                       2     3    3    3    1 
Estimated Outlays                                                                   1     3    4    3    1 
Other Programs, Reports, and Assessments:                                                                  
Estimated Authorization Level                                                       7     3    2    2    2 
Estimated Outlays                                                                   4     5    2    2    2 
Total Changes Subject to Appropriation:                                                                    
Estimated Authorization Level                                                   1,234 1,232  392  407    4 
Estimated Outlays                                                                 221   603  708  606  503 
-----------------------------------------------------------------------------------------------------------

Based on information provided by DOE about the current use of renewable electricity by federal agencies, CBO estimates that GSA would contract with utilities to build new facilities capable of producing nearly 250 megawatts of electricity. (CBO estimates that amount of capacity would generate roughly half of the renewable electricity federal agencies must consume by 2013 to meet the current-law requirement.) Based on information from the Energy Information Administration about the cost of building such facilities, we estimate that the cost per megawatt of renewable electricity capacity would average $3.3 million. That amount reflects a weighted average of capital costs for various types of renewable facilities--particularly wind and solar photovoltaic--and includes anticipated financing costs. For this estimate, we expect that most spending to build new capacity would occur over the 2008-2012 period, with facilities coming on line within three years of when construction begins.

CBO estimates that increased direct spending on contracts to obtain renewable electricity generation facilities under H.R. 2701 would cost $70 million in 2008, $770 million over the 2008-2012 period, and $830 million over the next 10 years.

Photovoltaic System. The bill would require GSA to install a photovoltaic system on the side of the headquarters building of DOE in Washington, D.C. Photovoltaic systems use solar-power technology to convert energy from the sun into electricity. The legislation would direct the department to use up to $30 million in unobligated balances in the Federal Buildings Fund, which currently has over $2 billion available, beginning in fiscal year 2008, to install the system.

CBO estimates that H.R. 2701 would modify the expected spending pattern of balances in the Federal Buildings Fund but would not increase budget authority. Based on information from DOE about the anticipated construction schedule, CBO estimates that implementing this project would cost $6 million in 2008 and $30 million over the 2008-2012 period. However, we also estimate that this project would not affect net federal outlays over the 2008-2012 period because spending on this project would be offset by decreased spending later in that period or by other GSA initiatives.

Capitol Construction Fund. The bill would add certain vessels engaged in short sea shipping on the Great Lakes Saint Lawrence Seaway System to the list of vessels for which capital construction funds may be established. By contributing to such funds, certain companies can defer income taxes on the portion of their income used for qualifying activities (for example, construction of vessels). Expanding eligibility for capital construction funds would become effective if changes to the Internal Revenue Code were made in subsequent legislation that are similar to the changes that section 402 would make to title 46. Since any changes in revenues would be contingent upon such subsequent legislation, enacting H.R. 2701 would not--by itself--have any impact on federal revenues.

Spending subject to appropriation

Public Transportation Grants. Section 201 would direct DOT to administer grants that would aid public transportation authorities to either reduce fares or to expand services. The bill would authorize the appropriation of $750 million annually in fiscal years 2008 and 2009 for such programs in urban areas with populations over 50,000, and $100 million in each of those two years for areas with populations under 50,000. Based on spending patterns for similar programs, CBO estimates that implementing those grant programs would cost $128 million in 2008, $1.5 billion over the 2008-2012 period, and about $220 million after 2012.

Rail Grants. Title III would establish two new grant programs, one intended to reduce emissions from trucks by using rail transportation and the other to reduce emissions generated by locomotives. The bill would authorize the appropriation of $300 million annually through 2011 for such programs. That amount includes $250 million to rehabilitate, preserve, or improve railroad track to increase the capacity of that track, and $50 million for grants to railroad carriers to purchase or refurbish locomotives that meet or exceed EPA's proposed emissions standards for locomotives and locomotive engines. CBO estimates that implementing those programs would cost $46 million in 2008, $846 million over the 2008-2012 period, and $342 million after 2012.

Maritime Transportation. Title IV would require DOT to establish a program to increase the use of a certain type of short-distance transportation of cargo by sea called short sea transportation and to establish an initiative to increase the use of technologies at United States ports and shipyards that would reduce certain air emissions. CBO estimates that he title also would implement the Protocol of 1997 to the International Convention for the Prevention of Pollution from Ships, 1973 (MARPOL) by requiring EPA and DOT to develop new regulations. CBO estimates that fully funding those programs would require appropriations totaling $215 million over the 2008-2012 period. That amount includes $100 million specifically authorized to be appropriated to DOT for a loan guarantee program to increase the use of short sea transportation and a specified $106 million for an initiative to reduce certain air emissions at ports. The remaining $9 million would be used to implement the short sea program and MARPOL regulations. Based on historical spending patterns for similar activities, CBO estimates that implementing title IV would cost $31 million in 2008 and $185 million over the 2008-2012 period, assuming appropriation of the amounts specified and estimated to be necessary.

Aviation Programs. Title V would establish two new programs aimed at improving the energy efficiency of aircraft and reducing aviation-related environmental impacts. CBO estimates that fully funding those programs would require appropriations totaling $126 million over the 2008-2011 period. That amount includes $111 million specifically 5 authorized to be appropriated to the Federal Aviation Administration for research on aircraft technology and $15 million estimated to be necessary for DOT to fund pilot projects to mitigate aviation-related effects on noise, air quality, or water quality. Based on historical spending patterns for similar activities, CBO estimates that implementing title V would cost $6 million in 2008 and $120 million over the next five years, assuming appropriation of the necessary amounts.

Commission on Water Resources. Title VII would authorize the appropriation of $12 million to establish a commission to study the use and management of water resources in the United States. The commission also would be responsible for assessing strategies and incentives to ensure that the United States continues to have an adequate and dependable supply of water. CBO estimates that enacting this provision would cost $1 million in 2008 and $12 million over the 2008-2012 period.

Other Programs, Reports, and Assessments. Other provisions of the bill would authorize the appropriation of $16 million over the 2008-2012 period, including:

CBO estimates that fully funding those activities would cost $4 million in 2008 and $15 million over the 2008-2012 period, assuming appropriation of the necessary amounts.

Intergovernmental and private-sector impact: Section 4 of UMRA excludes from the application of that act any legislative provisions that are necessary for the ratification or implementation of international treaty obligations. CBO has determined that title IV, subtitle B of H.R. 2701 falls within that exclusion because it 6 would implement Annex VI of the MARPOL Convention. Consequently, CBO has not reviewed those provisions for the presence of intergovernmental or private-sector mandates.

The remaining provisions of H.R. 2701 contain no intergovernmental or private-sector mandates as defined in UMRA. The bill would benefit public institutions of higher education and state and local governments by authorizing grants for various projects to enhance energy efficiency and mitigate environmental impacts. Any costs those entities would incur to comply with conditions of federal assistance would be incurred voluntarily.

Previous CBO estimates: CBO has transmitted several cost estimates for legislation that contain certain similar provisions to those in H.R. 2701.

On June 11, 2007, CBO transmitted a cost estimate for S. 1321, the Energy Savings Act of 2007, as ordered reported by the Senate Committee on Energy and Natural Resources on May 7, 2007. That bill contained a provision similar to the one in H.R. 2701 that would require federal agencies to increase their consumption of renewable electricity generated from facilities brought into service after 1998. CBO estimated that those provisions would cost $10 million in 2008 and $150 million over the 2008-2012 period. The differences in the bills' estimated costs are reflected in their different requirements.

On February 12, 2007, and June 11, 2007, CBO transmitted cost estimates for H.R. 798, an act to direct the Administrator of General Services to install a photovoltaic system for the headquarters building of the Department of Energy, as ordered reported by the House Committee on Transportation and Infrastructure and the Senate Committee on the Environment and Public Works, respectively. The provisions in H.R. 2701 addressing the installation of a photovoltaic system are identical to those in both versions of H.R. 798.

On February 12, 2007, CBO transmitted a cost estimate for H.R. 802, the Maritime Pollution Prevention Act of 2007, as ordered reported by the House Committee on Transportation and Infrastructure on February 7, 2007. Subtitle B of title IV of H.R. 2701 is similar in scope and content to the provisions of H.R. 802, and CBO estimates that the costs to implement the provisions would be the same.

Estimate prepared by: Federal spending: Aviation and energy programs: Megan Carroll; FEMA programs: Daniel Hoople; Water resources programs: Tyler Kruzich; Public buildings: Matthew Pickford; Maritime transportation programs: Deborah Reis; Surface transportation programs: Sarah Puro; Federal revenues: Emily Schlect; Impact on state, local, and tribal governments: Elizabeth Cove; Impact on the private sector: Jacob Kuipers.

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

COMPLIANCE WITH HOUSE RULE XXI

Pursuant to clause 9 of rule XXI of the Rules of the House of Representatives, H.R. 2701, as amended, does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the House of Representatives.

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House of Representatives, committee reports on a bill or joint resolution of a public character shall include a statement citing the specific powers granted to the Congress in the Constitution to enact the measure. The

Committee on Transportation and Infrastructure finds that Congress has the authority to enact this measure pursuant to its powers granted under article I, section 8 of the Constitution.

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office pursuant to section 423 of the Unfunded Mandates Reform Act (Public Law 104-4).

PREEMPTION CLARIFICATION

Section 423 of the Congressional Budget Act of 1974 requires the report of any Committee on a bill or joint resolution to include a statement on the extent to which the bill or joint resolution is intended to preempt state, local, or tribal law. The Committee states that H.R. 2701, as amended, does not preempt any state, local, or tribal law.

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the Federal Advisory Committee Act are created by this legislation.

APPLICABILITY TO THE LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the terms and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104-1).

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

TITLE 49, UNITED STATES CODE

* * * * * * *

SUBTITLE I--DEPARTMENT OF TRANSPORTATION

* * * * * * *

CHAPTER 1--ORGANIZATION

* * * * * * *

Sec. 102. Department of Transportation

* * * * * * *

* * * * * * *

SUBTITLE V--RAIL PROGRAMS

PART A--SAFETY
Chapter Sec.
201.
GENERAL
20101
* * * * * * *
PART B--ASSISTANCE
* * * * * * *
[Struck out->][ 223. ][<-Struck out]
LIGHT DENSITY RAIL LINE PILOT PROJECTS
22301
223.
CAPITAL GRANTS FOR RAILROAD TRACK
22301
* * * * * * *
PART E--MISCELLANEOUS
* * * * * * *
285.
COMMUTER RAIL TRANSIT ENHANCEMENT
28501

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PART B--ASSISTANCE

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[Struck out->][ CHAPTER 223--LIGHT DENSITY RAIL LINE PILOT PROJECTS ][<-Struck out]

[Struck out->][ Sec. ][<-Struck out]
[Struck out->][ 22301. Light density rail line pilot projects. ][<-Struck out]

[Struck out->][ Sec. 22301. Light density rail line pilot projects ][<-Struck out]

CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

Sec.
22301. Capital grants for railroad track.

Sec. 22301. Capital grants for railroad track

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PART E--MISCELLANEOUS

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CHAPTER 285--COMMUTER RAIL TRANSIT ENHANCEMENT

Sec.
28501. Definitions
28502. Surface Transportation Board mediation of trackage use requests.
28503. Surface Transportation Board mediation of rights-of-way use requests.
28504. Applicability of other laws.
28505. Rules and regulations.

Sec. 28501. Definitions

Sec. 28502. Surface Transportation Board mediation of trackage use requests

Sec. 28503. Surface Transportation Board mediation of rights-of-way use requests

Sec. 28504. Applicability of other laws

Sec. 28505. Rules and regulations

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SUBTITLE VII--AVIATION PROGRAMS

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PART B--AIRPORT DEVELOPMENT AND NOISE

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CHAPTER 475--NOISE

SUBCHAPTER I--NOISE ABATEMENT
Sec.
47501. Definitions.
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47511. CLEEN engine and airframe technology partnership.

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SUBCHAPTER I--NOISE ABATEMENT

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Sec. 47511. CLEEN engine and airframe technology partnership

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TITLE 23, UNITED STATES CODE

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CHAPTER 1--FEDERAL-AID HIGHWAYS

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SUBCHAPTER I--REPEALED

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Sec. 120. Federal share payable

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TITLE 46, UNITED STATES CODE

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SUBTITLE V--MERCHANT MARINE

PART A--GENERAL

Chapter
Sec.
501.
Policy, Studies, and Reports
50101
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PART D--PROMOTIONAL PROGRAMS
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556.
Short Sea Transportation
55601

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PART C--FINANCIAL ASSISTANCE PROGRAMS

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CHAPTER 535--CAPITAL CONSTRUCTION FUNDS

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Sec. 53501. Definitions

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Sec. 53503. Establishing a capital construction fund

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PART D--PROMOTIONAL PROGRAMS

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CHAPTER 556--SHORT SEA TRANSPORTATION

Sec. 55601. Short sea transportation program.
Sec. 55602. Cargo and shippers.
Sec. 55603. Financing of short sea transportation projects.
Sec. 55604. Interagency coordination.
Sec. 55605. Research on short sea transportation.
Sec. 55606. Short sea transportation defined.

Sec. 55601. Short sea transportation program

Sec. 55602. Cargo and shippers

Sec. 55603. Financing of short sea transportation projects

Sec. 55604. Interagency coordination

Sec. 55605. Research on short sea transportation

Sec. 55606. Short sea transportation defined

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ACT TO PREVENT POLLUTION FROM SHIPS

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SEC. 15. EFFECT ON OTHER LAWS.

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TITLE 40, UNITED STATES CODE

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SUBTITLE II--PUBLIC BUILDINGS AND WORKS

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CHAPTER 33--ACQUISITION, CONSTRUCTION, AND ALTERATION

Sec.
3301. Definitions and nonapplication.
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[Struck out->][ 3313. Delegation. ][<-Struck out]
[Struck out->][ 3314. Report to Congress. ][<-Struck out]
[Struck out->][ 3315. Certain authority not affected. ][<-Struck out]
3313. Use of energy efficient lighting fixtures and bulbs.
3314. Maximum period for utility services contracts.
3315. Delegation.
3316. Report to Congress.
3317. Certain authority not affected.

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Sec. 3307. Congressional approval of proposed projects

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Sec. 3310. Special rules for leased buildings

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Sec. 3313. Use of energy efficient lighting fixtures and bulbs

Sec. 3314. Maximum period for utility service contracts

Sec. [Struck out->][ 3313 ][<-Struck out] 3315. Delegation

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Sec. [Struck out->][ 3314 ][<-Struck out] 3316. Report to Congress

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Sec. [Struck out->][ 3315 ][<-Struck out] 3317. Certain authority not affected

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NATIONAL ENERGY CONSERVATION POLICY ACT

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TITLE V--FEDERAL ENERGY INITIATIVE

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PART 3--FEDERAL ENERGY MANAGEMENT

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SEC. 544. ESTABLISHMENT AND USE OF LIFE CYCLE COST METHODS AND PROCEDURES.

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MINORITY VIEWS

Although this legislation was originally marked up in Committee to attach to a larger energy package, H.R. 2701 did absolutely nothing to contribute to our nation's energy production.

ELIGIBILITY FOR CONGESTION RELIEF PROJECTS

An amendment was offered and rejected that would have allowed States to use their Congestion. Mitigation and Air Quality program funds for projects designed to relieve congestion, including the construction of new highway capacity if the project can be demonstrated to reduce fuel consumption or lead to attainment of air quality standards. Currently the Congestion Mitigation and Air Quality (CMAQ) program can not fund projects that construct additional highway capacity unless those new highway lanes are reserved for High Occupancy Vehicles (HOV).

The CMAQ program as it is currently written is one of the most under utilized Federal highway programs because the restrictive nature of the program makes it very unattractive to State Departments of Transportation. Over the last ten years $2.2 billion in CMAQ funding has gone unobligated by State DOTs. The unattractive nature of the program is also evidenced in how State DOTs have applied rescissions of highway contract authority. States have chosen to take 20 percent of their required rescissions in contract authority from the CMAQ program despite the fact that the program only represents 4 percent of all highway funding.

This amendment would have made the CMAQ program a more attractive source of funding because it would have expanded eligibility to include the construction of additional highway capacity. However, the Majority refused to accept this amendment even though the funding could only be used on projects that would reduce fuel consumption or improve air quality.

PERMIT STREAMLINING FOR HAZARDOUS LIQUID AND BIOFUEL PIPELINES

An amendment was offered and defeated that would have streamlined the permitting process for the construction of new pipelines and for the repair of damaged pipelines. The amendment was consistent with applicable statutory and regulatory requirements under the National Environmental Protection Act and under the Endangered Species Act.

The amendment would have created a Chief Environmental Permit Officer at the Department of Transportation. The Chief Environmental Permit Officer would serve as a liaison between government permitting officials and the pipeline operators during the government review of pipeline repair and construction projects to expedite the process while maintaining the protection of human health, public safety and the environment.

A key obstacle for the transition to alternative fuels such as ethanol is the need for more capacity for the safe transportation of these fuels by pipeline. However, to construct a new pipeline the pipeline operator must go through an environmental permitting and authorization process that is lengthy and expensive. This complicated and lengthy process discourages private pipeline operators from investing in the infrastructure necessary to deliver these alternative fuels to market.

This amendment also streamlined the process by which pipeline operators obtain permits to repair damaged pipelines. The existing permitting process for repairs to pipelines is unnecessarily slow and repetitive. While a pipeline operator waits for approval to make repairs to a damaged pipeline there is a greater risk of the pipeline failing and polluting our streams and watersheds and watersheds with hazardous liquids.

The flaws with the existing permitting process are demonstrated with the rupture of a pipeline near Sacramento California in 2004. In August 2003 the pipeline operator detected a weakness in the pipeline and immediately began the permitting process which took 10 months and involved 5 different environmental agencies. Unfortunately in April 2004, while the company waited for the repair permit to be issued the pipeline ruptured and released over 80,000 gallons of diesel fuel into a marsh. This spill would not have happened had the pipeline operator been able to proceed with repairs in a timely manner.

HYDROPOWER

The Majority also refused to accept an amendment focused on the tremendous benefit to our environment and economy provided by the hydropower system in the United States and the river transportation system made possible through its existence.

The contribution of hydropower to our domestic energy needs is significant as is its potential. The annual hydropower electricity produced in the United States equals the energy produced from 200 million barrels of oil. A recent Department of Energy study concluded that 33 states could increase their hydropower generation by 100% or more and 41 states could realize increases of more than 50%.

The environmental benefit of hydropower is unquestionable, and the replacement forms of energy are costly in many terms. Hydropower turbines convert more than 90% of available energy into electricity. Hydropower produces zero greenhouse gas emissions. The National Hydropower Association documents indicate that in 2004, more than 160 million tons of carbon emissions were avoided in the U.S. when 268 million megawatthours of hydroelectricity were generated. Nationally, hydropower production offsets more carbon emissions than all the other renewable energy resources combined.

In addition to the clean energy hydropower produces, the navigable waterways used for commercial shipping and transport made possible by the hydropower systems are essential, as is the need to lock systems that keep these waterways viable. In shipping terms, it would take 870 tractor trailers to carry what one 15-barge tow on our navigable waterways can carry. One barge alone removes 58 tractor trailers from our already-crowded roads and highways. The tugboat, towboat, and barge industry use the waterways to move 15 percent of the nation's freight for only 2 percent of the total freight bill.

The amendment rejected by the Majority instructed the Corps of Engineers to study hydropower impacts in a more robust manner than the underlying bill. The underlying bill only asked the Corps to review existing hydropower facilities, neglecting America's energy needs by avoiding action. To merely look at existing sites misses the point, since the United States must also review proposals to construct new hydropower facilities.

JOHN L. MICA.