TRADE
- Section 125 WTO Resolution Vote
The House of Representatives voted (56-363) a resounding NO against a resolution
introduced by Ron Paul (R-TX) seeking US withdrawal from the WTO, following a 0-35
vote by the Ways and Means Committee. However, Members used the debate to
express their displeasure with the WTO and repeated the need for improvements in the
way the body governs world trade.
ENVIRONMENTAL/REGULATORY
The House approved, 217-214, an appropriations bill funding the Labor Department
(including OSHA) that contained language added by Representative Anne Northup
(R-KY) prohibiting OSHA from finalizing an ergonomics regulation in fiscal year 2001.
The Senate followed suit by a vote of 57-41 on an identical amendment submitted by
Senator Mike Enzi (R-WY) to the comparable appropriations legislation. The bill will now
head to a joint House-Senate conference committee to work out differences. President
Clinton has threatened to veto any bill with this amendment. In a separate vote, the House
approved (220-203) a stand-alone bill preventing OSHA from issuing a final rule before
October 2001.
Senator Christopher Bond (R-MO), Chairman of the Senate Small Business Committee,
also submitted a letter to OSHA renewing his call for the withdrawal of the proposed
regulation after the agency admitted that as many as 10 million employees from state and
local government and others were not included in the original economic analysis. Even
more troubling, according to the Senator, was the fact that OSHA relied on sources such
as the AFL-CIO for the number of ergonomics-related injuries suffered by employees in
the state and local government sector. "Organized labor's support for this rule is widely
known," Bond wrote, "And to rely on their numbers for determining the cost merely
pushes OSHA's credibility to a new low."
Additionally, Senate Health, Education, Labor and Pensions Employment, Safety and
Training Subcommittee Chairman Enzi expressed concerns about OSHA's use of outside
contractors to analyze comments received on the rule. "The fact that OSHA has farmed
out this very important task is clearly evidence that OSHA is attempting to rush through
this rulemaking process instead of taking the time to do its own job properly," the Senator
wrote to his colleagues.
During a hearing held in April, members of Enzi's subcommittee were critical of the plan
because they said it could tamper with state workers' compensation laws. The OSHA
provisions would allow workers forced off the job by certain types of injuries to receive
up to 90% of their after-tax income and 100% of their benefits, effective immediately. But
workers' compensation laws generally only provide workers two-thirds of their regular
salary and typically have a waiting period of at least a week. OSHA Administrator
Charles Jeffress denied the charge and said the proposed rule would not supersede any
workers' compensation laws.
Weighing in against the rule is National Small Business United (NSBU), the nation's oldest
small business advocacy organization. The group believes the rule is disproportionately
detrimental to small businesses that make every effort to protect their employees.
As of early May, OSHA had heard from 1,000 witnesses in hearings held in three
locations, and the agency has a stack of more than 25,000 pages of public comments.
The Supreme Court has decided it will rule on how much authority EPA should have in
cleaning up air pollution. This decision will be one of the most important environmental law
cases ever. The case stems from a federal appeals court ruling that blocked EPA from
enforcing its 1997 rules aimed at reducing industrial and automobile-related smog and
soot. The Court did not challenge the EPA's findings that the emissions were harmful, but
rather ruled that the EPA "has failed to state intelligibly how much is too much" and that
the Clean Air Act set forth no "intelligible principle" to guide the agency.
The Supreme Court recently expanded its review to include cost-benefit analysis and the
scientific validity of the government proposal. The expansion was sparked by a
cross-appeal from a coalition representing manufacturing interests. The group asked that
the review include that portion of the appeals court ruling that released the EPA from
taking implementation costs into account.
EPA has had great success in improving air quality at minimal cost by allowing private
parties to buy and sell pollution rights. A Supreme Court decision upholding the lower
court would continue this process. It would discipline regulators by requiring clear
cost-benefit analyses, making them face the market costs of any regulations they seek to
impose. The case will be heard in the fall, with a decision to follow sometime in 2001.
On the legislative front, Congressman John Linder (R-GA) drafted an amendment to the
VA/HUD appropriations bill suspending further action by the EPA under the new ozone
and PM 2.5 standards until the Supreme Court has had time to reach a final decision on
the issue. The appropriations bill, with the amendment attached, passed the House by a
vote of 226-199.
This rule, as written, would result in 2 million TRI reports being filed on air releases during
each reporting cycle.
- Proposed Changes to Emissions Reporting
EPA has proposed a rule to consolidate emissions reporting; improve reporting efficiency;
provide flexibility for data gathering and reporting; and better explain to program
managers and the public the need for a consistent inventory program.
Specifically, EPA is adding reporting requirements for hazardous air pollutants (HAPs),
and particulate matter less than or equal to 2.5 micrometers; consolidating the various
reporting requirements that already exist into one place; establishing new requirements for
statewide reporting of area source and mobile source emissions; includes reporting
requirements for nitrogen oxides (NO[X]) State Implementation Plans (SIPs); and new
reporting for air toxics. Facilities would have to report HAP emissions for plants emitting
at least 10 tons per year of one HAP or 25 tons per year of two or more.
EPA estimates that 22,500 labor hours per year would be needed to comply with this
proposed rule.
OTHER LEGISLATION
Late last month, the Senate blocked (51-48) a Democratic forced vote to add the
House-passed bill to the fiscal year 2001 appropriations bill for defense. Buoyed by this
recent near-win in the Senate _ where advocates say they now are one vote short of
victory _ advisers to President Clinton are guardedly optimistic that they can win passage
of the bill on the next try, and feel strongly they will get another chance. Although the
Senate is the real battleground, the Administration will also seek to keep the issue's profile
high by pressing for further votes in the House, as well. In addition, Democrats have
vowed to bring the measure up as often as they can.
Republicans blamed Democrats for operating in bad faith by bringing the bill to the floor
before the conference was completed and insulting the efforts of Senate Majority Whip
Don Nickles (R-OK), who chairs the conference. It will now be difficult for Democrats to
be accepted back into the conference as serious players.
- Electricity Restructuring
Odds are now against passage of a comprehensive restructuring bill by both the House
and Senate and signed by the president during this shortened congressional session.
According to Representative Rick Boucher (R-VA), "The issue is too complicated and
controversial to make it through." He added, "If no hearings are held, it would be due to
lack of consensus, not lack of interest."
The House Committee Chairman Tom Bliley (R-VA) is interested in full committee
mark-up, and has proposed a slimmer bill that has a better chance of passage. The
Chairman will encourage committee members to offer amendments during the markup to
increase the scope of the legislation. Opposition is expected as Mr. Bliley attempts to
move the bill forward.
On the Senate side, the Energy and Natural Resources Committee concluded its markup
of a comprehensive electricity deregulation bill, but little consensus was reached. Senators
were divided on how to proceed with a comprehensive bill, but rather supported a
stand-alone reliability bill, believing that achieving consensus on a complex restructuring
bill is too much to ask this late in the year.
As a result, the Committee Chairman Frank Murkowski (R-AK) opted for approval by
voice vote of a slimmed down bill that simply guarantees reliability of the power grid,
dropping the more controversial provision on transmission, renewable energy mandates
and regional transmission organizations.
The appropriations bill funding EPA for fiscal year 2001 contained language that would
prohibit EPA from implementing the Kyoto climate change treaty, and overhauling Total
Maximum Daily Load (TMDL) rules under the Clean Water Act.
The National Resources Defense Council (NRDC) continues to argue that "we can do
Kyoto." The organization insists the lawmakers need to take a proactive approach to
global warming, and cannot continue to deny the problem exists. They add, "Kyoto is a
modest, but essential first step in dealing with global warming. It provides ample time and
flexibility, with a lead-time of a decade."
Opponents argue that the science is not definitive enough to prove man's impact on
climate, and that current models have too many problems. While surface data shows
warming, stratospheric data does not. Additionally, the steel industry will be hit hard due
to the industry's high use of energy.
- Stock Options/Overtime Pay
According to a Labor Department advisory, companies that grant stock options to
workers eligible for overtime would have had to include the option profits in their wage
base and increase their overtime pay. Employers would have had to recalculate overtime
pay based on profits realized when an employee exercised stock options. Because the
amount of overtime pay would be based on the profit the worker realized on the option,
the extra payment could become quite large for workers. Additionally, the advisory
required employers to include all overtime as far back as 104 months.
The Senate countered with, and passed, a bill by a 95-0 margin that amends the Fair
Labor Standards Act (FLSA) to ensure that non-exempt (hourly) workers can continue
to receive stock options and other equity participation programs. Since the Labor
Department (after careful consideration) supports the bill, it is anticipated the President
will sign it into law.
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