Federal News Briefs

EPA Moves to Make Diesel Trucks and Buses Cleaner
The Environmental Protection Administration has proposed a major action to reduce the sulfur content in diesel fuel by 97 percent. By addressing diesel fuel and engines together as a single system, harmful emissions from diesel and gasoline heavy trucks and buses will be reduced up to 95 percent—the clean-air equivalent of eliminating air pollution from 13 million of today's trucks. "The Clinton-Gore Administration already has produced the toughest tailpipe standards ever for passenger cars, minvans, sport utility vehicles, and pick-up trucks," said EPA Administrator Carol M. Browner. "This proposal takes the next big step to achieve cleaner air. It will provide dramatically cleaner heavy-duty trucks and buses. The result will be significantly healthier air for all Americans." This proposal would reduce smog-causing nitrogen oxides from these vehicles by 95 percent, and it would reduce particulate matter, or soot, by 90 percent. In the United States, every year, smog and particulate matter account for 15,000 premature deaths, one million respiratory problems, 400,000 asthma attacks, and thousands of cases of aggravated asthma, especially in children. To date, most diesel trucks and buses have not used pollution control devices such as catalytic converters, similar to the devices that have been used on cars for the last 25 years. To enable pollution-control technology to be effective on trucks and buses, diesel fuel must be significantly cleaner than it is today. Diesel engines are more durable and have higher fuel economy than gasoline engines. With lower-sulfur fuels and advanced technology, they also will be able to burn more cleanly as well.

Senate OKs Military Speding Bill with $276 Million for N.C. Bases
The Senate on Thursday approved 96-4 a military construction bill that earmarks $275.6 million for North Carolina bases. Se. John Edwards (D-NC) said the measure provides more for construction of barracks, family housing, schools, child development centers and other modernization projects at bases in North Carolina than for military installations in any other state. "I have visited our Army, Air Force and Marine Corps bases in North Carolina and seen first hand the need to improve the quality of life for the enlisted men and women serving our country," Sen. Edwards said. "This legislation will help reduce a serious backlog of projects needed to maintain the readiness and quality of life for our military personnel." At Fort Bragg, three barracks complexes and a 112-unit family housing project are among some $146 million worth of Army construction projects in North Carolina earmarked in the legislation. The bill would provide another $8.7 million to begin work on a new military combat training facility for the Army, Army Reserve and National Guard at Fort Bragg, and $2.3 million for a maintenance facility at the Army's Sunny Point Ocean Terminal. The legislation also would set aside $12.3 million for a Joint Armed Forces Reserve Center in Greenville to replace facilities damaged beyond repair by Hurricane Floyd. Camp Lejeune and other Marine Corps and Navy installations in North Carolina would receive $80.7 million for work on a bachelor enlisted quarters, a 149-unit family housing facility, an elementary school, child development centers and other projects. Pope Air Force Base would be allocated $25.5 million for construction projects. The North Carolina appropriations are part of an $8.6 billion military construction bill. The measure includes another $4.7 billion for U.S. operations in Kosovo, for anti-drug efforts in Colombia and for other defense programs.

Brownfields Grants: Sen. John Edwards also announced $1.5 million in grants to help four N.C. cities revitalize their downtown areas. The EPA grants are part of the Brownfields Economic Development Initiative, which seeks to clean up and redevelop properties that are not being used because of possible environmental contamination. Winston-Salem and Fayetteville will each receive $500,000 from a pilot revolving loan fund, while Concord and Laurinburg will each get $250,000 under an assessment demonstration program.

Other Votes: Senator Edwards was in the 53-47 majority that rejected a proposal to require Congress' consent to keep U.S. peacekeeping forces in Kosovo. Defense Secretary William Cohen had said he would recommend that President Clinton veto the bill if that provision had been adopted.

Chamber Opposes Senate Mental Health Care Mandate
Chamber of Commerce on Wednesday urged the Senate to oppose legislation that would require health plans that include mental health benefits to cover them on a other health benefits. "The Chamber strongly opposes any expansion of government mandates on the benefits employers voluntarily provide 155 million families," said Kate Sullivan, health policy director for the U.S. Chamber. "Businesses need the flexibility to design their benefit programs to meet the needs of workforce, and mandates take away that flexibility." "Employers recognize the value of investing in mental health evaluation and treatment for their workers," noted productivity due to depression, anxiety and substance abuse are major factors business is striving to overcome." Some large employers are providing full parity in programs, the Chamber noted. However, in order for full parity of mental health benefits to make fiscal sense for employers, they must have access to both a provider network and resource management options that can demonstrate cost-effectiveness. Employers are already grappling with medical inflation cost increases in the range of 12 to 20 percent. Chamber surveys show that employers often increase co-payments or deductibles in order to mitigate cost increases. When workers have to bear more of the cost of their group health coverage, they opt out of insurance programs – jeopardizing their overall health status, warned Sullivan.
"A mandate to provide mental health benefits on the same basis as physical health will certainly mean that some employers will drop mental health benefits or scale back coverage for physical health," asserted Sullivan. "Parity for mental health benefits mean little when you have no health benefits at all."

Toxic Air Emissions Plummet 45 Percent
The amount of toxic emissions released by manufacturing industries has declined 45 percent in the past decade, according to a new report from by Environmental Protection Administration. The report says manufacturers emitted 1.5 billion pounds less in toxic emissions in 1998 than they did in 1988, a 45 percent decline. Compared to the last report, for 1997, releases from manufacturing industries declined by 90 million pounds; releases to air were down by 6 percent and releases to land were also down slightly, by 0.2 percent. Releases to water increased a small degree, but less than the year before. EPA expects water releases to decline in the future. Click here to read the report and other information about the EPA's Toxic Reporting Inventory program

Industrial Production Rises 0.9 Percent
The most recent Federal Reserve report on industrial production indicates moderate, non-inflationary economic growth is continuing, according to National Association of Manufacturers President Jerry Jasinowski. "Will today’s report influence the Fed’s rate decision this week? Probably not, but the good news is that today’s numbers show that whatever the Fed decides, even if it’s a rate hike of 50 basis points, our economy is likely to continue growing," Jasinowski said Wednesday. The report states that industrial production rose by 0.9 percent in April, while capacity utilization rose to 82.1 percent. "The data provide additional evidence that the manufacturing sector is outpacing the economy as a whole, and this has been true for most of the 1990s," Jasinowski noted. "Since manufacturing growth is based primarily on productivity, there is very little risk that higher capacity use will be associated with higher inflation. Instead, the productivity gains generated by higher output in durable manufacturing are actually helping to hold inflation in check," the NAM president concluded.

Ways and Means Passes China PNTR
The U.S. Chamber of Commerce applauded Wednesday's 34 – 4 vote in the Ways and Means Committee in favor of permanent normal trade relations for China (PNTR). "The benefits of voting ‘yes’ on PNTR and trade with China are clear," said Chamber President and CEO Tom Donohue. "Lower barriers to China’s markets means more exports of American products made by American workers." The full House is expected to debate and vote next week on the trade agreement with China worked out by the Administration late last year. The Chamber has pushed for Congress to pass the trade agreement and began running radio ads in targeted congressional districts and Washington today. "Next week’s vote is the most important trade vote in a generation," said Donohue. "Congress must not turn their backs on American businesses, workers and farmers that want to compete in China’s markets. Without PNTR, America will be forced stay at home and watch while our trade competitors gain the lowered tariffs worked out by U.S. negotiators." The trade deal with China cuts average industrial tariffs from 35 percent to 10 percent and cuts agriculture tariffs in half by 2004 – boosting U.S. exports by $13 billion in five years, with agricultural exports increasing by $2.2 billion per year, according to administration estimates.

Travel and Tourism Generates $14 Billion Trade Surplus
New figures issued today by the Commerce Department shows that international travel and tourism generated a $14 billion trade surplus in 1999, marking the tenth consecutive year in which it has done so. This was due to a record 48.5 million international travelers who visited the United States last year, an increase of 5 percent over 1998. Last year, international travelers to the United States generated more than $11 billion in federal, state, and local tax revenues. The United States is the leading country in the world for tourism receipts and ranks third behind France and Spain for international visitors. Canada's stronger economy, a recovering Asia, and Western Europe's steady economic growth, all played a major role in the stronger than expected growth in 1999 arrivals to the United States. The NAFTA partners continue to be the top international source markets for the United States. Canada reached over 14 million arrivals to the U.S. last year, an increase of 5 percent over 1998. Mexico followed with more than 9.9 million arrivals, for a jump of nearly 7 percent. The tourism figures reveal that Japan remains the overseas leader in tourism arrivals to the United States, topping 4.8 million in 1999, closely followed by the United Kingdom at 4.3 million. Germany and France ranked as the third and fourth overseas markets with nearly 2 million and over 1 million visitors, respectively.
In 1999, California became the top state visited by overseas travelers (6.2 million), surpassing Florida with over 5.8 million visitors. California and Florida have traded places over the years as the top destination. The other top 10 states/territories visited were: New York (5.8 million), Hawaii (2.7 million), Nevada (2.4 million), Illinois (1.3 million), Massachusetts (1.3 million), Texas (1.1 million), Guam (1.0 million), and New Jersey (905,000). Top city destinations for overseas visitors for 1999 were: New York City (5.5 million), Los Angeles (3.6 million), Miami (2.9 million), Orlando (2.9 million), San Francisco (2.8 million), Las Vegas (2.3 million), Honolulu (2.2 million), Washington, DC (1.3 million), Chicago (1.3 million), and Boston (1.2 million).

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