Energy & Transportation Update

ENERGY

Customers Could See Lower Winter Heating Costs

Low wholesale natural gas prices could result in lower heating bills for many this winter. In much of the country, natural gas utilities periodically adjust rates based on the cost of natural gas in the wholesale market. In Missouri, both Missouri Gas Energy and Laclede Gas have lowered rates base on wholesale fuel prices.

Gas price is a significant portion of the variable costs that are accounted for in the rate. Rates also include a utilities fixed costs, such as the cost of pipes and other infrastructure, that do not vary much over time.

The total cost of heating is affected by other factors. In particular, the length and severity of cold periods affects the amount of natural gas used. Even if the unit price of gas is lower, if more is used because there are more cold days or colder days, the total paid for gas could go up.

USDA Grants $2.9M to Missouri for Ethanol Distribution

The U.S. Department of Agriculture’s (USDA) Biofuel Infrastructure Partnership granted $2.9 million to Missouri to increase the availability of ethanol. The state anticipates the grant will aid retailers in the installation of 171 pumps for fuels that contain ethanol. You can find more about this grant here.

Ethanol is a type of alcohol used for fuel; for automobiles it is typically blended with gasoline. Missouri requires most gasoline sold to contain 10 percent ethanol, though some vehicles can run on fuel that is as much as 85 percent ethanol (E-85).

                           

TRANSPORTATION

$10M Federal Grant to Aid Missouri-Illinois Bridge Replacement

The federal government has committed $10 million to the construction of a bridge to replace the Champ Clark Bridge at Louisiana, MO. The bridge links U.S. 54 in Missouri and Illinois. Illinois has committed funding for its share of the cost, but Missouri is still seeking much of the $30 million needed for its share. You can find out more about this project here.

New Briefs

It’s been a while since I’ve had to post anything on this blog, so some of this news is old. I appreciate those of you who still follow this blog. I hope I can continue to make something worthwhile for you.

Foxx Sworn in As Transportation Secretary

Anthony Foxx has been sworn in as Secretary of Transportation. Foxx was mayor of Charlotte, NC, and has had a career as an attorney and politician.

GAO Critiques Nonpoint Source Program

The Government Accountability Office (GAO) published a report that critiques the Environmental Protection Agency’s (EPA) 319 program. This program (named for the section of the Clean Water Act that authorized it) provides grants to states to undertake activities to reduce nonpoint-source pollution, including subgrants to organizations to implement improvements. They found that the program sometime failed to produce desired results and that EPA’s oversight of the program sometimes was inadequate or produced unintended undesirable results. In addition, a complementary program of the Natural Resources Conservation Service introduces practices that, by themselves, can decrease water quality because their primary intent is soil conservation.

I-5 Bridge Collapse

At this time, IW has no news to add to what has been reported on the I-5 bridge collapse. The collapse of a bridge on I-35 was one of the events that prompted the launch of this blog. IW sends it’s condolences to those affected by this event and wishes the National Transportation Safety Board a fruitful investigation.

Many Highway Projects are Categorical Exclusions for NEPA

GAO published a report on expediting highway projects. One of the interesting things was that many highway projects were considered categorical exclusions for the purpose of review under the National Environmental Policy Act (NEPA). Categorical exclusions are classes of projects that, individually or collectively, have been determined by rule to have no significant environmental impact. These projects receive no or limited NEPA review.

New Appointees to Advisory Committee on Construction Safety & Health

Acting Labor Secretary Seth D. Harris appointed or reappointed eight members to the ACCSH. The new members are

-Sarah M. Coyne of Arizona Construction Training Alliance and

-Jerry Rivera of the National Electrical Contractors Association.

OSHA Extends Deadline for Crane Operator Certification

The Occupational Safety and Health Agency announced its will extend the deadline for certification of crane operators to November 10, 2017. The original rule that was finalized in 2010 established a deadline next year.

Report on Rural Water Infrastructure

The GAO published a report on programs that fund drinking water and wastewater infrastructure in rural areas. In Missouri, agencies that administer the State Revolving Fund (a state-administered EPA-overseen program), Water and Waste Disposal Program (U.S. Department of Agriculture), and Community Development Block Grants Program (a state-administered program overseen by the Department of Housing and Urban Development) coordinate their water funding efforts.

Google

Farm Bill Includes Environmental Funding

The agriculture appropriations bill that passed Congress earlier this month included funding for water, waste and environmental programs. Some of the major environment-related program funded by this bill are

-Rural Utilities: Rural Water and Waste Disposal Program - $568.7 million
- Environmental Quality Incentives Program - $1.18 billion
-Water quality research - $12.6 millio
-Natural Resources Conservation Services - $887.6 million

More information:
Rural water appropriations pass both houses
Water Legislation — recycling, research, efficiency

House Passes National Water Research and Development Initiative Act

The U.S. House of Representatives recently passed the National Water Research and Development Initiative Act of 2009 (H.R. 1145). IW previously posted a summary of the bill here.

National Water Research & Development Initiative Reported Out of House Committee

The National Water Research and Development Initiative Act of 2009 (H.R. 1145) is proceeding through the House of Representatives, where it was recently reported out of the Committee on Science and Technology. The bill would

-Establish an interagency committee on water supply.

-Establish a national water initiative coordination office with a full-time staff to support the work of the interagency committee.

-Require development of a plan that will prioritize federal water research and related funding.

-Establishes specific outcomes for federal agencies on the interagency committee including, among several others, a national water census.

-Authorize the Department of Energy to study the development of impaired waters for energy production.
Additional information is available on this House Committee on Science and Technology news release

New Chief of Natural Resources Conservation Service Named

Agriculture Secretary Thomas J. Vilsack named Dave White as chief of the Natural Resources Conservation Service (NRCS). NRCS operates programs related to soil and water conservation. White is a career conservationist with NRCS. He provided technical and management expertise in Missouri, South Carolina, Washington, D.C. and Montana, where he served as State Conservationist from 2002 to 2008. White also served in the Senate Agriculture Committee where he helped craft the Conservation Title for both the 2002 and 2008 Farm Bills. He also served on the White House Task Force for Livable Communities during the Clinton Administration.

Read the original news release here.

New Rule on Rural Water and Waste Interest Rates to Take Effect Feb. 20

On February 20, 2009, new rules governing the interest rates charged by the U.S. Department of Agriculture (USDA) for rural water and waste loans will take effect. Under the new rule, interest rates charged to communities meeting the poverty rate criteria will be 60 percent of the market rate and the intermediate rate will be 80 percent of market rate. As before, USDA will determine the market rate quarterly based on a bond index. The new rates will apply to loan commitments entered after May 23, 2008. You can find the new rule here.

As a matter of comparison, the state revolving fund program (SRF) in Missouri charges an interest rate of 30 percent of the market rate and a 1 percent administration fee. However, SRF loans may not exceed 20 years, while USDA loans commonly have terms of 30 years or greater.

House Passes Stimulus Bill

The House of Representatives passed the American Recover and Reinvestment Act of 2009 (H.R. 1) on January 28. The bill would put additional funds into several infrastructure related programs. Federal Facilities and LandMany provisions of the bill provide funding for construction of improvements on federal facilities and land under the management of several departments.

Rural Water and Waste
The U.S. Department of Agriculture’s water and waste program would receive an additional $1.5 billion.

State Revolving Fund
An additional $6 billion would go to the state revolving fund (SRF) for wastewater and $2 billion for drinking water. The Environmental Protection Agency would have to make the money available to states within 30 days. The states would have to commit half the money within one year and the rest within two years. This is much more realistic than the 120 day requirement in earlier proposals. The bill would also require at least half of the stimulus package funds for the SRF to go to municipalities. The potential for funding investor-owned systems is also affected by law of the states that operate the SRF program, so it is uncertain how much this requirement will effect the availability of funds for investor-owned systems.

Water Resources and Flood Control
The Natural Resources Conservation Service would receive $400 million for watershed and flood control improvements and operations. The Corp of Engineers would receive $2 billion for construction. The Department of Interior would receive $500 million for water and related resources.

Other Infrastructure and Environment Bills
The economic stimulus package isn’t the only thing working its way through Congress. Some additional bill are:
-Sustainable Water Infrastructure Investment Act of 2009 (HR537)--Removes the volume cap for private activity bonds for water and sewage facilities.
-Water Use Efficiency and Conservation Research Act (HR631)--Funds activities related to water use efficiency and conservation.
-Produced Water Utilization Act of 2009 (HR469)--Funds technologies for the use of water produced in developing energy resources and for other purposes.

Additional articles and posts:
$819B Makeover: Obama, Dems Promise Stimulus Changes
Congress to Consider Recovery Bill
Drinking Water Not Getting as Much of Stimulus Package as Advocates Hoped
Economic Stimulus Package Would Increase Environmental Funding
Stimulus bill passes House with $2B for drinking water
Water legislation — new or progressing

Economic Stimulus Package Would Increase Environmental Funding

Sen. Harry Reid (Nevada) has introduced a supplemental appropriations bill intended to boost the economy(S. 3689). Some of the programs that may receive a supplement include:

Program—Additional Funding
Automotive Industry Assistance--$25,000,000,000
Department of Energy (DOE): Defense Environmental Cleanup--$800,000,000
DOE: Non-Defense Environmental Cleanup--$150,000,000
DOE: Uranium Enrichment Decontamination--$170,000,000
Economic Development Administration: Public Works & Economic Development--$50,000,000
Environmental Protection Agency: State & Tribal Assistance (includes state revolving fund programs)--$2,500,000,000
National Park Service (NPS): Construction--$105,000,000
NPS: Creates National Park Centennial Fund—up to $1,000,000,000 from 2009 to 2018
Rural Utilities Service: Rural Water & Waste Disposal--$200,000,000
U.S. Fish & Wildlife Service: Construction--$88,000,000

Water Infrastructure News

Economic Stimulus Package Would Increase Water Infrastructure Funding

Sen. Harry Reid (Nevada) has introduced a supplemental appropriations bill intended to boost the economy(S. 3689). Some of the programs that may receive a supplement include:

Program—Additional Funding
Economic Development Administration: Public Works & Economic Development--$50,000,000
Environmental Protection Agency (EPA): Clean Water State Revolving Fund--$1,750,000,000
EPA: Drinking Water State Revolving Fund--$750,000,000
Rural Utilities Service: Rural Water & Waste Disposal--$200,000,000

New York Plans Repairs to Water Supply Tunnel
The City of New York is preparing to repair the Rondout-West Branch tunnel, which carries water 45 miles from the Catskill Mountains to the city. Recently the tunnel has been leaking as much as 36 million gallons a day. You can find more information on these repairs here.

Links to Infrastructure-Related Government Agencies

Department of Agriculture
Department of Commerce
-Economic Development Administration
Department of Defense
-Army Corps of Engineers
Department of Energy
Department of Homeland Security
Department of Housing and Urban Development
Department of Interior
Department of Transportation
-Federal Highway Administration
-Federal Transit Administration
Environmental Protection Agency

Forest Service Seeks Nominees for Advisory Council

The U.S. Forest Services is seeking three members for the National Urban and Community Forestry Advisory Council. They are seeking: -A person that is not an officer or employee of any government body living in a city with a population of more than 50,000 and who has experience and has been active in urban and community forestry.-A person representing academic institutions with an expertise in urban and community forestry activities.-A person representing forest products, nursery, or related industries. Nominations must be postmarked no later than September 3, 2008. You can find out more about the nomination process here.

Rural Utility Service Funding Available to Communities with Excessive Energy Costs

The U.S. Department of Agriculture’s Rural Utility Service has announced grants to help communities with excessive energy costs improve generation and distribution facilities. You can see the announcement on Grants.gov. As brief summary of the program is available here.

Rural Utility Service Funding Available to Communities with Excessive Energy Costs

The U.S. Department of Agriculture’s Rural Utilities Service has announced the availability of funding for projects to reduce excessive energy costs in communities. Project may involve the acquisition, construction or improvement of energy generation and distribution infrastructure. Projects must benefit communities where the household energy cost is 275 percent of the national average. More information, including program links, is available here at Infra Consulting LC.

Government Accountability Office Releases Report on Federal Rural Water and Wastewater Programs

Last month the Government Accountability Office (GAO) issued a report on four programs that fund rural water and wastewater projects. Over the last three fiscal years (2004-2006), they collectively provide about $49 billion in grants and loans. The vast majority of this was through the U.S. Department of Agriculture (USDA) ($42 billion). Other agencies reviewed include the Economic Development Administration (EDA), Bureau of Reclamation and Corp of Engineers.

USDA and EDA have established nationwide programs and eligibility criteria. EDA funds water, wastewater and other public works projects in areas considered economically depressed under the agency’s criteria. These projects must result in creating or preserving jobs. USDA programs are for rural areas (cities of 10,000 or less and unincorporated rural areas) without economic criteria or eligibility.

The Corp and Reclamation have not traditionally operated general programs. They have undertaken projects under specific Congressional mandates, mostly pilot projects for the Corp. In 2006, new legislation directed Reclamation to develop a general water and wastewater grants program, though this would be regional rather than nationwide like USDA and EDA.
The report did not include programs administered through the Environmental Protection Agency and Department of Housing and Urban Development. These programs are largely operated by state agencies that receive grants from the federal agencies responsible for overseeing the programs.