INTERNATIONAL NEWS
New York Times: Chasing a Climate Deal in Paris
PARIS — It was only in 2007 that more people on the planet lived in urban areas than rural ones. But the shift to cities is accelerating. The megalopolises of the developing world — urban centers like Jakarta, Indonesia; Lagos, Nigeria; and Mexico City — already leave a huge carbon footprint. How they and other emerging cities move their people around, the kinds of buildings they allow, and how they handle sewage and waste will all have crucial implications for the climate.
NATIONAL NEWS
The Hill: Conservative groups key-vote highway bill with Export-Import Bank renewal
Conservative groups Club for Growth and Heritage Action for America on Thursday urged lawmakers to oppose a long-term transportation bill that reauthorizes the Export-Import Bank. The groups issued key vote alerts on the conference report on a five-year $305 billion highway spending bill that would renew the Ex-Im Bank through fiscal 2019 with the House set to vote on final passage early Thursday afternoon.
The Hill: House approves five-year, $305B highway bill
http://thehill.com/policy/finance/261958-house-approves-305b-highway-bill
The House overwhelmingly approved a five-year, $305 billion highway bill Thursday, advancing the first long-term national transportation spending package in a decade and cementing an early legislative achievement in the Speaker Paul Ryan era.
The Hill: Feds applaud House passage of $305B highway bill
http://thehill.com/policy/transportation/262033-feds-applaud-house-passage-of-305b-highway-bill
Transportation Secretary Anthony Foxx applauded lawmakers in the the House for approving a five-year, $305 billion highway bill on Thursday, clearing the way for a potential Senate vote to end a string of temporary road funding patches that has lasted for a decade.
The Hill: Yellen concerned about use of Fed surplus for highway bill
http://thehill.com/policy/finance/262067-yellen-concerned-about-use-of-fed-surplus-for-highway-bill
Federal Reserve Chairwoman Janet Yellen said Thursday that she is opposed to a congressional plan to pay for a federal highway spending bill by dipping into the central bank’s surplus account.
The Hill: Senate sends $305B highway bill to Obama
http://thehill.com/policy/finance/262049-senate-sends-highway-bill-to-obama
The Senate approved a five-year, $305 billion highway bill Thursday, sending it to President Obama with just one day to spare before the scheduled expiration of the nation's road and transit spending.
The Hill: Senate sends Ex-Im renewal to Obama's desk
http://thehill.com/policy/finance/262076-senate-propels-ex-im-renewal-to-obamas-desk
The Export-Import Bank is alive. Renewal of the 81-year-old institution's charter was included in a five-year, $305 billion federal transportation measure that passed the Senate late Thursday on an 83-16 vote, only one day ahead of the expiration of the latest short-term funding patch.
New York Times: Transportation Bill Is Full of Little-Heralded Changes
WASHINGTON — Some Interstate highways now free to travelers could soon become toll roads. Amtrak’s long-distance train routes could face private-sector competition. And auto employees and contractors who come forward with information about safety violations at their companies soon may collect a percentage of the penalties imposed by the government.
Bloomberg: A Highway Bill We'll Regret
http://www.bloombergview.com/articles/2015-12-03/a-highway-bill-we-ll-regret
Credit where it's due: After 10 years, much haggling and several dozen failed attempts, Congress now looks likely to pass a long-term highway bill. It will finally shore up America's ailing roads and bridges. It will sensibly revive the U.S. Export-Import Bank. It even takes a firm stand against automated traffic tickets.
The Week: The most underrated problem with American infrastructure
http://theweek.com/articles/591948/most-underrated-problem-american-infrastructure
With Republicans likely in control of the House of Representatives until at least 2020, wishful thinking is unavoidably a big part of the Democratic presidential primary. While Bernie Sanders' policies are by far the most ambitious, all three major candidates are laying out plans for the country that don't have a single prayer of getting through Congress.
STATE NEWS
Greater Greater Washington: Arguments against bike lanes aren't very consistent
http://greatergreaterwashington.org/post/28812/arguments-against-bike-lanes-arent-very-consistent/
Some people say bike lanes will hurt their property values. Others say they're a sign that long-time residents will soon be pushed out of their homes. But none of those arguments hold up. It seems like bike lane hate is more about fighting change, any change, than fighting bikes.
Progressive Railroading: Phoenix light-rail project advances in FTA grant program
The Federal Transit Administration (FTA) approved moving Valley Metro's South Central Phoenix light-rail extension into the project development phase of the Capital Investment Grant (CIG) program.
The Charlotte Observer: Former Charlotte Mayor Anthony Foxx seeks dismissal of claims over DesignLine work
http://www.charlotteobserver.com/news/business/article47707235.html
Former Charlotte Mayor Anthony Foxx has asked a U.S. bankruptcy court judge to dismiss claims against him in a lawsuit that attempts to recover pay he received from his former employer, defunct bus maker DesignLine.
Vox: Why Minneapolis was voted the most bike-friendly city in America
http://www.vox.com/2015/12/3/9843562/minneapolis-bike-friendly
When we think about bicycle-friendly cities, we usually think of Northern Europe — Copenhagen, Helsinki, Amsterdam — and happy people two-wheeling around on cobblestone streets.
Philadelphia Magazine: Report Makes Case for King of Prussia Rail Line
http://www.phillymag.com/news/2015/12/03/king-prussia-rail-line/
“How many of you took transit to get here?” SEPTA Deputy General Manager Rich Burnfield asked the standing-room-only crowd that came out Thursday morning to attend the Economy League of Greater Philadelphia’s presentation on “Connecting with the King” at the Sheraton Valley Forge Hotel in King of Prussia.
Oregon Live: Portland's next ride: super-sized buses that act like light rail
http://www.oregonlive.com/commuting/index.ssf/2015/12/portlands_next_ride_super-size.html
The Portland region is expanding its already crowded stable of transit options.
POLTICO Morning Transportation
By Jennifer Scholtes | 12/04/2015 05:41 AM EDT
With help from Heather Caygle, Lauren Gardner and Martine Powers
HALF-DECADE OF HTF CERTAINTY SAILS TO WHITE HOUSE: A single signature is all that's needed now to deliver five years of steady cash flow to the Highway Trust Fund. It's been an arduous and protracted journey, no doubt, but lawmakers finally found all the theoretical cash and political will necessary to pass a multiyear highway and transit plan through both chambers. While it's still unclear when exactly President Barack Obama will turn the legislation into law, the final outcome is not at all up in the air. This is a done deal.
End game: Eager to leave the Capitol after a multi-hour vote-a-rama on amendments to a separate health care bill, senators ultimately sped through the transportation vote Thursday night with an expeditiousness seldom seen in the upper chamber. A brief procedural protest against the inclusion of crop insurance language was overcome in a vote of 77-22. And then, as if firing the starting gun, Sen. Barbara Boxer zealously kicked off the final roll call: "I love everyone tonight. We're going to have a great vote. Go! Go!"
Our Heather Caygle sums up the outcome best: "After years of public pleas from the construction industry, a forceful lobbying blitz backed by Big Business and labor groups, and billions of dollars in bailouts, the Senate easily passed the bipartisan bill on a 83-16 vote just hours after the House approved the measure."
IT'S FRIDAY: Good morning and thanks for tuning into POLITICO's Morning Transportation, your daily tipsheet on all things trains, planes, automobiles and ports.
Reach out: jscholtes@politico.com or @jascholtes.
"And I took a train outta there. I told the engineer I don't believe there's no help handy."
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HOUSE LEADERS SETTLE ON BIPARTISAN VISA WAIVER PLAN: As we first forecast on Tuesday, House leaders are now prepping for a vote next week on a Visa Waiver plan that's expected to show overwhelming cross-party consensus that the program needs some revamping. Both House Majority Leader Kevin McCarthy and Minority Whip Steny Hoyer praised the bill (H.R. 158) on Thursday, with Hoyer predicting it "passing with bipartisan, big majorities next week."
Some old, some new: While the push to reconsider security under the program was surely reinvigorated by last month's terrorist attacks in Paris, security-focused lawmakers have been backing this bill for well over a year. Rep. Candice Miller first introduced the measure in September 2014, reintroduced it in January and shepherded it through the House Homeland Security Committee with unanimous support in June. What's new now is that the recent terrorist attacks have brought the bill to the attention of congressional leaders and brought Republicans and Democrats together to come up with additional language to make the legislation more stringent.
European disapproval: Even though congressional Visa Waiver efforts are far from final, the debate has begun to attract attention abroad, with a top European diplomat publicly arguing that the legislative proposals could harm economies, unfairly burden innocent people and complicate EU-U.S. relations. POLITICO's Nahal Toosi reports that "David O'Sullivan, the European Union's ambassador to the United States ... noted that the EU was already planning a review of the program next year and that Washington's actions could affect the outcome." In a phone interview Thursday, O'Sullivan said: "Frankly, we feel some of these ideas are being rushed through without necessarily thinking out fully the consequences."
TRADE TIDE SPECULATORS LOOK TO MOTOR CITY: Trade leaders on Capitol Hill are keeping a close eye on the stirring sentiment of Detroit automakers since Ford has made so clear that it's against the Trans-Pacific Partnership deal. Pro Trade's Adam Behsudi explains that "the decision of the powerful U.S. automobile industry to support, oppose or stay neutral on a trade deal that includes the exporting powerhouse of Japan is being carefully watched in Congress, even as the administration continues to rally lawmakers for support. Unified resistance from Detroit could peel valuable votes away from the TPP, which is what opponents are counting on in the wake of Ford announcing its opposition to the deal over currency concerns. ... But other automakers and suppliers aren't in any rush to stake out a position."
NOT ALL PUPPIES AND RAINBOWS: Amid the bipartisan cheering in Congress this week for passage of the multiyear transportation plan, there was also an undercurrent of naysaying. Sen. Tom Carper, who joined Sen. Elizabeth Warren as the only two Democratic "nay" votes on the final deal, had been warning all week that he wouldn't be supporting the plan. "While the proposal includes some good transportation policies, the way the bill is paid for is simply irresponsible," the Delaware Democrat said. "Rather than leading, Congress is passing the buck by using a grab bag of budget gimmicks and poaching revenues from unrelated programs for years to come in order to pay for today's transportation needs."
Fed feud: Federal Reserve Chairman Janet Yellen has some fighting words of her own about the plan, criticizing Congress this week for tapping the Fed's surplus holdings early to pay for the proposal, Pro Financial Services' Jon Prior reports. "It weakens fiscal discipline," Yellen told the Joint Economic Committee on Thursday.
From the sidelines: The Heritage Foundation also came out with its declaration of outrage, calling the bill "fiscally irresponsible and ... dubiously crafted." In a blog post , Michael Sargent scolded the bill's kick-the-can approach: "By relying on budget gimmicks to fund ever more spending, FAST shows that the road to compromise was simply paved by more government spending that taxpayers cannot afford."
No shame: Despite that brand of criticism, transportation leaders have remained pretty unapologetic about the controversial offsets they ended up using. Our Lauren Gardner reports that House T&I leaders "aren't losing sleep" over the plan's "reliance on revenue raisers that are unrelated to transportation." But Lauren also notes that Chairman Bill Shuster says he's committed to immediately bringing stakeholders together to come up with a long-term plan for keeping the Highway Trust Fund flush down the line.
** A message from the Coalition for Efficient and Responsible Trucking: We can dramatically reduce truck congestion and prevent over 900 truck-related accidents every year through a tried and tested five-foot extension in the length of twin trailers. Learn more about the amazing accident-free track record of twin 33s at http://efficientandresponsible.org/twin33s **
TRAIN-ING CATS AND DOGS: Within the transportation deal that's now cleared Congress, lawmakers have ordered Amtrak to fire up a pilot program to let travelers bring cats and dogs on certain trains. The provisions, championed by Rep. Jeff Denham, have been publicized with the charm of his French bulldog, Lily. Under the multiyear highway and transit deal, Amtrak will have to dedicate at least one "pet car" on each train, where feasible, to allow passengers to transport kenneled pets either as carry-on or checked luggage. The rail operator is barred from using any federal funds to operate the program and is instead required to charge an extra pet fee to cover the cost. The legislation makes clear that the new pilot program in no way overrides the rights of passengers traveling with service animals.
GAO TO EYE SELF-DRIVING CARS: The Pro Technology team reports that the mammoth transportation and infrastructure deal includes a few items for Silicon Valley types, including a federal look at self-driving cars. The measure calls on GAO within the next two years to assess "the status of autonomous transportation technology policy" developed by the feds, while recommending additional paths to encourage self-driving car technology.
Noticeably missing: Rep. David Schweikert first hoped to guide federal agencies toward reducing their vehicle fleets and using services like Uber, before settling on an amendment that just asked for a study. The well-publicized effort, however, was dropped entirely from the final package.
STATES, COUNTIES STRIKE DEAL TO ZERO-OUT TAILPIPE EMISSIONS: It's not often that Connecticut, Quebec, and Germany share a sentence, but they are among 13 states, provinces, and nations to promise no carbon emissions from vehicles by 2050. Morning Energy's Eric Wolff reports that the group, which also included California, Vermont, Quebec, the Netherlands, Norway, the United Kingdom, Maryland, Massachusetts, New York, Oregon, Rhode Island and Vermont, just announced the deal in Paris this week. "We're reaching the end of the road for dirty transportation; [zero-emission vehicles] are better for our planet, better for our communities, and better for our families - it's time for more states and countries the world over to follow suit," Sierra Club Electric Vehicles Initiative Director Gina Coplon-Newfield said in a statement reacting to the news.
MT MAILBAG: A cohort of New Hampshire aviation businesses has sent a letter to Sen. Kelly Ayotte, chairwoman of the Senate Commerce aviation subcommittee, urging her to oppose the creation of an air traffic control corporation. Their fear: a privatized ATC would feature a board stacked with industry insiders advocating for the interests of the nation's largest airlines and aircrafts, leaving the little guys in general aviation to fight for access to airspace and airport development funds. "While we strongly agree that maintaining the status quo risks our nation's supremacy in aviation, we believe that radical changes to the FAA's management structure and funding poses much greater risks - to the safe and stable nature of the world's best air traffic control system," the letter says.
ON THE MOVE:
- Steven Lang, Volpe's director of air traffic systems and operations, has retired after 40 years of working in air traffic management. What's his claim to fame? Lang is the guy who pushed changes to national aviation standards that allowed "closely spaced parallel runway operations" - basically, using the science of wake turbulence to allow airplanes to travel safely at closer distances, increasing capacity at airports nationwide. (Volpe has a nifty graphic that explains the strategy.) Think you've got the chops to fill Lang's shoes? Volpe has begun its talent search.
- POLITICO Influence reports that Chris McCannell has left the APCO Worldwide consulting firm, where he did work for Etihad Airways, as well as several financial services clients.
THE AUTOBAHN (SPEED READ):
- Uber in fresh funding round that could value company at up to $64.6 Billion. The Wall Street Journal.
- Metro unveils more rider-friendly budget to a skeptical board. The Washington Post.
- Electric cars can't take the cold. Bloomberg Business.
- Toyota asks for ideas about how to use an ultra-small vehicle. The New York Times.
- Frontier Airlines said to be exploring IPO. The Denver Post.
- Asia ride-hailing firms, U.S.-based Lyft team up to rival Uber. Reuters.
THE COUNTDOWN: Transportation authority expires today. DOT appropriations run out in 8 days. FAA reauthorization expires in 120 days. The 2016 presidential election is in 342 days.
THE DAY AHEAD:
10 a.m. - The Center for Strategic and International Studies hosts a discussion about the preclearance partnership between the U.S. and Canada, with an assistant director from CBP, the president and CEO of the Greater Toronto Airports Authority and an executive for Air Canada. 1616 Rhode Island Ave. NW.
10:30 a.m. (CST) - Rep. Adam Kinzinger joins the National Railroad Construction and Maintenance Association for a tour of the Colo Railroad Builders' new facility. 760 Twin Rail Dr., Minooka, Ill.
Noon - The FAA holds a special committee meeting on standards of navigation performance. RTCA Inc., 1150 18th St. NW, Suite 910.
Did we miss an event? Let MT know at transpocalendar@politicopro.com.
** A message from the Coalition for Efficient and Responsible Trucking: As more consumers than ever rely on Internet shopping and efficient package delivery, it¹s time to make our highways safer by reducing the number of large trucks on the road. Over the next decade, the Less-Than-Truckload (LTL) freight trucking sector is expected to grow by 40% unless steps are taken to make trucking more efficient. Through a modest five-foot extension in the length of twin 28-foot trailers, we can economize 6.6 million truck trips every year, significantly reducing highway congestion preventing over 900 accidents per year. Fewer trucks would significantly extend the life of our aging infrastructure, while saving 204 million gallons of fuel and reducing carbon emissions by an astonishing 4.4 billion pounds every year. Learn more about the benefits of twin 33s, including the amazing five-year, 1.5 million mile, accident-free track record of twin 33s at http://efficientandresponsible.org/twin33s **
Stories from POLITICO Pro
Senate sends transportation infrastructure bill to Obama Back
By Heather Caygle | 12/04/2015 05:41 AM EDT
The Senate passed the biggest transportation infrastructure bill in a decade Thursday, sending to the White House a $305 billion five-year package that keeps federal money flowing to highway, transit and rail projects - and reopens the controversial Export-Import Bank.
After years of public pleas from the construction industry, a forceful lobbying blitz backed by Big Business and labor groups, and billions of dollars in bailouts, the Senate easily passed the bipartisan bill on a 83-16 vote just hours after the House approved the measure.
The 1,300-page bill was nearly a decade in the making, and the White House has said President Barack Obama was ready to sign it - and not a moment too soon, since the authority that allows the Department of Transportation to cut checks for highway and transit projects expires Friday.
In addition to renewing highway and transit programs, the bill overhauls Amtrak in an effort to make the federally subsidized railroad more profitable and revives the Export-Import Bank, which Congress allowed to expire last summer after conservatives blocked its renewal.
"This bill will be one of the most important things this Congress can accomplish for our country," said House Transportation Chairman Bill Shuster (R-Pa.) shortly before the House overwhelmingly approved the measure earlier in the day.
Congress had failed to agree on how to cobble together the funding for a long-term highway and transit bill since 2005. This latest bill even bumps up federal spending on road and transit projects, although it relies on a buffet of budget gimmicks to do so.
The bill (H. Rept. 114-357) relies on about $70 billion in unrelated pay-fors to keep the Highway Trust Fund on stable footing for the next five years, and it leans heavily on the Federal Reserve for most of that money, a move opposed by Fed Chair Janet Yellen.
"If the Fed can bail out the banks and give them preferred interest rates, they can do something for the greater economy and for average Americans. So it was their time to help out a little bit," said Rep. Peter DeFazio (D-Ore.), ranking member on the House Transportation Committee.
Congressional leaders have held the bill up as a paragon of Capitol Hill humming along as it was designed to, with bipartisan input, an open amendment process and responsible funding.
But critics complained that lawmakers only succeeded by using budget wizardry and rosy assumptions to guarantee a fully funded bill.
"It doesn't matter," DeFazio said, brushing off concerns that the pay-fors might not raise as much as budget scorekeepers estimate.
"Because when this bill is signed into law, we transfer $70 billion into the trust fund. It's mandatory spending. Whether that money ever shows up or not, that's not our problem," he added.
After mostly operating under an unrelenting cycle of funding extensions since 2009, the long list of industries that fix crumbling roads, bridges and transit systems are now gazing ahead to five years of funding certainty.
And the bill's industry advocates, which includes both the Chamber of Commerce and AFL-CIO, have stressed that long-term, guaranteed funding is needed for states and transit agencies to properly plan long-term projects.
The infrastructure package is also a fitting denouement to Sen. Barbara Boxer's congressional career, which has spanned more than 30 years. The California Democrat, who is retiring after next year, has made no secret that getting a long-term bill to the president before she left Congress was her top priority and a key part of her legacy.
Boxer negotiated with Majority Leader Mitch McConnell (R-Ky.) to bring the Senate bill to the floor earlier this summer, moving mountains to get it passed and bucking most of her party's leadership in the process.
At one point, when the Senate bill appeared to be on life support in mid-July, Shuster slammed the measure, saying it was littered with Democratic priorities. And then-Speaker John Boehner described the Senate effort as a "piece of s---" to a room of House Republicans.
Even some Senate Democrats had worked behind the scenes to undermine the bill, hoping instead to fund transportation through a business tax overhaul that never materialized.
But Boxer, McConnell and Senate Environment and Public Works Chairman Jim Inhofe (R-Okla.) managed to push the bill across the finish line, eventually garnering a majority of support for final passage. The successful Senate vote has been credited by many as the catalyst that ultimately spurred the House to action on its own highway and transit legislation.
"That certainly helped," Shuster said Thursday. Up until the Senate action in July, Shuster and his House transportation colleagues had been focused on a massive FAA overhaul.
The Senate's success brought new optimism to the effort to enact a long-term bill rather than simply another short-term extension before the end of the year - a crucial deadline that many thought if missed would lead to another round of funding stopgaps through the 2016 election.
"We worked with them very closely and we gave them a head start," Inhofe said about the Senate's role in prodding the House into action.
Through August recess and into the fall, House negotiators got to work, hammering out their own bipartisan bill. Shuster and DeFazio then navigated it through a committee markup in October, during the dramatic and tumultuous leadership shuffle in the House.
And in a critical first test for new Speaker Paul Ryan, lawmakers worked through hundreds of amendments on the floor before a majority of members signed on to support the House bill in early November.
Then the real work began: a team of House and Senate negotiators worked across the Capitol over the last few weeks to iron out every last detail, under pressure to shepherd a final agreement through Congress by the end of this week. The process wasn't easy for the staffers tasked with wrapping up the bill, most of whom worked through Thanksgiving week to finish the deal.
And now, the behemoth, multi-billion dollar package is headed to the White House to receive the final stamp of approval: Obama's signature.
"It's a big deal. It's really a big deal," said Sen. Orrin Hatch (R-Utah).
Jennifer Scholtes contributed to this report.
House overwhelmingly passes transportation bill, focus turns to Senate Back
By Heather Caygle | 12/04/2015 05:41 AM EDT
The House overwhelmingly passed a five-year transportation infrastructure bill today, one of the last hurdles before the $305 billion package heads to the White House for the final stamp of approval.
Lawmakers approved the bill in an 359-65 vote, clearing the way for possible Senate action later today. Facing a Friday deadline to renew current policy, Senate leaders are urging members not to employ any legislative roadblocks that could delay consideration of the bill until next week.
The bill sets highway, transit and rail policy for the next five years - the first truly long-term transportation bill in a decade - and is the culmination of months of legislative action and heated negotiations across the Capitol.
The measure also revives the Export-Import Bank to the chagrin of conservative hard liners, who had hoped to get rid of the credit agency once and for all after its charter expired this summer.
The bill gives federal safety regulators more firepower against automakers that try to hide or delay recalls for deadly defects by hiking civil penalties and boosting agency funding. And the legislation raises the compensation ceiling for victims of the deadly Amtrak derailment in Philadelphia in May.
Lawmakers used a variety of budget gimmicks to offset costs of propping up the Highway Trust Fund through 2020, including reaching deep into Federal Reserve coffers.
While the bill doesn't offer a long-term funding solution, it will be a welcome reprieve for the transportation construction industry, which has been funded primarily in fits and starts since 2009.
Jennifer Scholtes contributed to this report.
Hoyer forecasts 'bipartisan, big majorities' for Visa Waiver bill Back
By Jennifer Scholtes | 12/04/2015 05:41 AM EDT
House Minority Whip Steny Hoyer is publicly predicting a landslide vote next week in favor of slapping new restrictions on those who benefit from the Visa Waiver program.
On the House floor this afternoon, Hoyer praised his GOP colleagues for working with Democrats to reach agreement on final language, saying he looks forward to the bill "passing with bipartisan, big majorities next week."
Majority Leader Kevin McCarthy said the House is expected to take up the measure (H.R. 158) under suspension of the rules, moving it without amendment debate and requiring a higher threshold of two-thirds majority for passage.
The majority leader characterized the legislation as an effort to "close loopholes ... to prevent terrorists from exploiting the system and coming to America to wreak havoc."
Leaders from both sides of the aisle have agreed to add extra language to the bill, which Rep. Candice Miller introduced in January and the House Homeland Security Committee unanimously approved in June. Those additional provisions would bar people "who have traveled from Syria and Iraq from using the program, terminates a country for failing to screen against INTERPOL's criminal and terrorism databases, and allows the secretary of Homeland Security to suspend high-risk countries until the threat has passed," according to Miller.
Besides that new language, the bill would give DHS the power to immediately suspend Visa Waiver eligibility for countries that have failed to turn over the intelligence they have agreed to share. But it would also require the department to restore those partnerships if countries then make good on those promises.
Europe pushes back on visa waivers Back
By Nahal Toosi | 12/04/2015 05:41 AM EDT
A top European diplomat is criticizing congressional efforts to revamp the U.S. Visa Waiver Program, saying legislation under consideration could harm economies, unfairly burden innocent people and complicate EU-U.S. relations.
David O'Sullivan, the European Union's ambassador to the United States, wouldn't go so far as to say American travelers could wind up facing reciprocal restrictions from countries whose citizens can freely travel to the U.S. But he noted that the EU was already planning a review of the program next year and that Washington's actions could affect the outcome.
"Frankly, we feel some of these ideas are being rushed through without necessarily thinking out fully the consequences," O'Sullivan said Thursday in a phone interview.
The Nov. 13 attacks in Paris, which were carried out primarily by European citizens believed linked to the Islamic State terrorist network, have prompted the bipartisan push to tighten the Visa Waiver Program. The program allows temporary visa-free travel for people from 38 countries, and some 20 million people a year visit the U.S. through it.
Legislation under consideration would deny visa-free entrance to people from partner countries who have visited Iraq, Syria and other hot spots of terrorism in recent years. Measures being considered also include requiring countries allowed in the program to have passports with special security features.
O'Sullivan said he and his fellow diplomats from the 28 EU member states are reaching out to lawmakers, their aides and the Obama administration to urge them to slow down. He acknowledged that the drafts being discussed are still "moving targets" but said the elements publicized so far are disheartening.
European countries are moving toward issuing biometric passports, he said, but it's a process that takes time, especially because people often don't change their passports until they've expired. The idea of restricting travelers who have visited places such as Iraq and Syria is too broad, O'Sullivan added, pointing out that Europeans who travel to those places include aid workers, businessmen and others who have no links to terrorism.
European countries already are taking steps to improve their intelligence sharing, track potential terrorists and generally improve security standards in the wake of the Paris attacks, which killed 130 people and wounded numerous others, the ambassador said.
"We are all deeply affected by the events which have been taking place," he said. "This is a shared concern. I understand U.S. lawmakers are looking for ways in which they can be seen to be respond to the situation, but I think they need to take a bit of time."
He noted the huge economic benefits for both Europe and the United States brought about by the Visa Waiver Program (the tourism industry in particular is a beneficiary) and added, "There's no evidence at all that the visa-waiver system is part of the problem at the moment or likely to become part of the problem anytime soon."
It's unclear whether O'Sullivan's pleas will move many in Washington. Democrats and Republicans alike are lining up behind the proposals in the works, and the White House on Thursday signaled it was happy with what was in the works.
Already, five EU member states are unhappy because they are not included in the visa waiver program with the United States. The bloc's plans to review the program next year will get far more complicated if the U.S. issues new restrictions, O'Sullivan said.
Asked if Americans could suddenly find themselves facing similar demands before they can travel to Europe, O'Sullivan said, "I don't think that anyone wants to go down that road, but since this is a reciprocal arrangement, I think that unilateral changes are not helpful."
Detroit may split on TPP pact Back
By Adam Behsudi | 12/04/2015 05:41 AM EDT
Ford hates it. General Motors is silent. And nearly 1,000 U.S. automobile parts makers aren't quite sure whether the Trans-Pacific Partnership will drive them out of business.
The decision of the powerful U.S. automobile industry to support, oppose or stay neutral on a trade deal that includes the exporting powerhouse of Japan is being carefully watched in Congress, even as the administration continues to rally lawmakers for support. Unified resistance from Detroit could peel valuable votes away from the TPP, which is what opponents are counting on in the wake of Ford announcing its opposition to the deal over currency concerns.
"With Ford making this very public announcement, it's already helping us," said Rep. Marcy Kaptur, the Ohio Democrat who co-chairs the House auto caucus and opposes the trade deal. "Let's hope that the others will follow."
But other auto makers and suppliers aren't in any rush to stake out a position.
The Motor and Equipment Manufacturers Association, the nation's largest auto parts industry organization, is in the process of canvassing its more than 1,000 members.
"We imagine we're going to have that input and a position in early January," said Ann Wilson, the group's senior vice president for government affairs.
General Motors, Fiat Chrysler and the American Automotive Policy Council, which lobbies for the big three U.S. automakers in Washington, also say they're still reviewing the agreement.
"Each company is studying the details of the agreement to have a strong handle on what the real implications are," said Rep. Debbie Dingell, a Michigan Democrat with close ties to the industry who is opposed to the deal.
The domestic auto industry's influence over trade agreements has been palpable in past attempts to get trade deals through Congress. The Obama administration in 2010 renegotiated the auto provisions of a trade deal with South Korea, originally settled under the Bush administration, in order to ease its passage in Congress.
"Wherever they have a manufacturing facility, [auto companies] tend to have a lot of influence because of the size of those facilities," a trade lobbyist said. "They're important players in this process."
The United Autoworkers on Thursday announced its opposition to the deal, joining the AFL-CIO and other labor groups that were against the agreement once it was released. The UAW was the only major labor organization to support the administration on its last major trade deal with Korea, but after the agreement was renegotiated to lengthen the time during which U.S. auto tariffs were eliminated, among other things.
The auto labor union faulted the Asia-Pacific agreement for its lack of an enforceable labor plan with Mexico, inadequate currency measures, adding low wage pressure from other countries, and an automobile rule of origin far lower than in the North American Free Trade Agreement.
Meanwhile, the industry's recent emergence from contentious labor contract negotiations may be one factor complicating its ability to take sides on TPP.
Labor costs are expected to go up under new union contracts with the big three automakers, ratified last month, potentially prompting some automakers to view the trade deal as an opportunity to shift more production to Mexico - beyond what has already been done under the NAFTA.
"Mexico, if nothing else, has become an excellent exporting platform to South America and other parts of the world," said Arthur Schwartz, a former labor relations director for GM and president of Labor and Economics Associates.
While the trade deal didn't appear to overtly influence labor negotiations, Schwartz said contracts with all the big automakers included "product placement guarantees," in which the companies promised not to move production of certain cars or components.
Another factor that could give GM pause about crossing the administration on trade is the company's continuing legal troubles. GM is recovering from a scandal in which it concealed an ignition switch defect that has been linked to the death of at least 100 people. To avoid prosecution, the car company negotiated a $900 million settlement with the Department of Justice and agreed to independent monitoring for three years.
"We're still reviewing the trade deal in detail; it's pretty complex for us," said a spokeswoman for GM.
It wouldn't be the first time domestic companies viewed a trade deal differently. Ford took a hard line on the Korea deal until it was renegotiated, while GM had remained neutral because its South Korean subsidiary, Daewoo, stood to benefit from the original terms of the agreement.
Ford, however, hasn't blinked about TPP. Shortly after the details of the trade deal were released last month, Ford voiced its opposition, saying the deal lacked the kinds of provisions needed to enforce rules against countries devaluing their currency to advantage exports. Instead, the final deal produced only a "joint declaration" in which the 12 countries pledged to be more transparent about their monetary policies and meet on an annual basis to discuss the issue.
"When you look at this agreement, there is no upside," said Steve Biegun, Ford's vice president for international governmental affairs. "This locks in the status quo."
While Japan is not technically manipulating the value of its yen for export advantages, Biegun charged that the government's economic revitalization plan has included consistent monetary easing that has promoted excess production in its auto sector, rather than spurring sustainable economic growth.
"If we were truly concerned about the long-term viability of Japan, we would pressure them to restructure their economy to compete in the global economy," he said.
Despite Ford's currency-driven opposition, the Obama administration has made a point of looking out for U.S. automaker interests since Japan joined the negotiations. As a condition of joining the talks, Tokyo agreed that the elimination of a 2.5 percent U.S. import tariff on passenger cars and the 25 percent duty on trucks would match the longest tariff phase-out period in the entire agreement.
The U.S. tariff on truck imports will remain in place for the first 29 years of the pact, and passenger cars will be subject to the full duty for 15 years. Both tariffs are targeted for eventual elimination - the truck tariff in 30 years, the auto tariff in 25 (after being ratcheted down in years 16 through 24).
Tokyo grudgingly accepted those long phase-outs to participate in the agreement.
"They were really hoping for a better deal," a Japanese official said of his country's automakers, who look with envy on the 5- and 10-year phase-outs South Korea was able to secure on cars and trucks respectively, in its separate bilateral deal with the U.S.
The U.S. also forced Japan to address a number of issues revolving around auto distribution and standards that U.S. automakers claim limit market access. Japan will also have to submit to a special dispute settlement process that will provide an accelerated process to deal with new, so-called non-tariff measures and a safeguard measure that will squeeze off imports of Japanese autos in case there is a surge of shipments.
The final deal will also keep tariffs in place on at least 20 percent of auto parts imported to the U.S. for up to 15 years instead of immediately eliminating duties on all parts imports as has been done in past trade agreements. The U.S. kept those duties in response to labor demands that the deal retain some protection as domestic production ramps up on turbo chargers, lithium ion batteries, gear boxes and other sophisticated components.
"I don't think there's much to complain about, but I don't think there's much to be excited about," said Caroline Freund, a senior fellow at the Peterson Institute for International Economics.
She said the U.S. auto industry could have more to gain from a pending trade deal with the European Union if the agreement delivers what it promises in terms of eliminating trans-Atlantic automotive regulatory barriers.
The Obama administration hasn't wasted any time letting auto manufacturers and labor know how it defended their interests in the deal, particularly in the face of increased opposition from Japan.
The White House is hoping that effort will result in a supportive position, rather than simply a neutral stance on the deal.
"We've done a lot of briefings of the stakeholders, the unions and the companies, to really help them understand what's in the package," said an administration official.
Yellen criticizes Congress for raiding Fed surplus Back
By Jon Prior | 12/04/2015 05:41 AM EDT
Federal Reserve Chair Janet Yellen criticized Congress today for tapping the Federal Reserve's surplus holdings early to pay for highway projects.
Under a proposal to be voted on in the House today, the Fed's surplus fund would be capped at $10 billion with the rest swept to the government's coffers.
"It weakens fiscal discipline," Yellen told the Joint Economic Committee. "And I would point out that repurposing the Federal Reserve's capital surplus doesn't actually create any new money for the federal government."
The Fed sweeps interest earned on its holdings to the government. Yellen said liquidating them early diminishes this stream of revenue "for many years." She added that holding the surplus reassures the market that the central bank can effectively manage its investments.
"There is the narrative that this is easy money," the panel's Chairman Sen. Dan Coats told Yellen at the hearing. "I think you have given us a pretty good response to that question."
The White House has said it will the sign bill, which is expected to be easily passed.
T&I leaders remain unapologetic for digging into Fed piggy bank Back
By Lauren Gardner | 12/04/2015 05:41 AM EDT
House Transportation Committee leaders aren't losing sleep over their five-year highway and transit bill's reliance on revenue raisers that are unrelated to transportation.
"If the Fed can bail out the banks and give them preferred interest rates, they can do something for the greater economy and for average Americans, so it was their time to help out a little bit," ranking Democrat Peter DeFazio of Oregon told reporters today.
"I didn't make that selection," committee Chairman Bill Shuster said. "I accepted [it]."
Shuster acknowledged that the hodgepodge of offsets - ranging from raiding the Federal Reserve's surplus fund to siphoning customs fees - led some members of his party to oppose the bill. "I think we got all we could get at this point in time," he said of the ultimate $305 billion price tag.
Many members have complained that the pay-fors are budgeting gimmicks that may not end up raising the amount that government number-crunchers have estimated. DeFazio said that "doesn't matter" because Congress' work is done.
"When this bill is signed into law, we transfer $70 billion into the trust fund. It's mandatory spending," he said. "Whether that money ever shows up or not, it's not our problem."
Shuster had a diplomatic response. "I have faith in our leadership that they came up with solutions," he said.
T&I leaders expect work to continue on long-term Highway Trust Fund solution Back
By Lauren Gardner | 12/04/2015 05:41 AM EDT
Lawmakers' work to keep the Highway Trust Fund flush won't end once President Barack Obama signs the highway and transit bill, House Transportation Chairman Bill Shuster told reporters today.
"As soon as the president signs this, we've got to bring the stakeholder community to the table" to figure out a long-term fix, he said following the chamber's 359-65 vote to pass the five-year measure.
"Everybody's got to be on the same page, and then we have to go out and sell it to the American people and sell it to the legislators," Shuster added.
There is broad consensus among states and transportation groups that a user fee model should continue to be used to prop up the trust fund. But the challenge for lawmakers is determining how much, if any, of that fee should be a gas tax increase and whether other models, like a vehicle-miles-traveled approach, are viable nationwide.
The bill anticipates states developing their own alternative financing mechanisms, committee ranking member Peter DeFazio said.
"There's a laboratory out there in the states - everybody's got infrastructure needs," he said.
The Congressional Budget Office reported yesterday that the Highway Trust Fund could be short nearly $100 billion by 2025 without additional revenues coming in.
The next Congress under a new president will likely push for a major tax overhaul, Shuster said, which represents the best chance for an infrastructure windfall.
"What is something we can all live with, something we think we can be successful at in having a long-term fix - that's what we have to do," he said.