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       SENATORS SEEK GRASSROOTS ACTION ON REAUTHORIZATION

       PRESIDENT NAMES NEW DEPUTY TRANSPORTATION SECRETARY

       EIA INCREASES DIESEL AND OIL PRICE PROJECTIONS

Also in the News:   NHTSA ISSUES RULES MANDATING TIRE PRESSURE MONITORS

PRESIDENT NAMES NEW DEPUTY TRANSPORTATION SECRETARY

President Bush announced Wednesday, April 6, he will nominate Maria Cino as Deputy Transportation Secretary. Cino, currently deputy chairwoman of the Republican National Committee, has worked for the president before. Before serving in the number two spot at the RNC, Cino was assistant secretary and director general of the Commerce Department's U.S. and Foreign Commercial Service. Before that, Cino was deputy chairwoman for political and congressional relations at the RNC. She would replace Kirk Van Tine, former deputy who left DOT last December.

SENATORS SEEK GRASSROOTS ACTION ON REAUTHORIZATION

Republican and Democratic leaders of the Senate Environment and Public Works Committee are asking transportation industry officials to help convince Senate leaders to schedule floor time this month for debating their surface transportation reauthorization bill. The idea is to get focused on "making sure leadership understands that it's important that we do this this month," one industry official said. Environment and Public Works Transportation and Infrastructure Subcommittee ranking member Max Baucus (D-MT), organized a meeting of around 100 industry officials yesterday with Transportation and Infrastructure Subcommittee Chairman Christopher Bond (R-MO), Environment and Public Works Chairman Inhofe and ranking member James Jeffords (I-VT). The senators reportedly asked for grassroots assistance and said they expect and would support a floor effort aimed at increasing the current six-year reauthorization level of $283.9 billion in the legislation.

Support for a higher reauthorization level might prove problematic for getting floor time because Senate Majority Leader Frist supports the $283.9 billion figure and opposes a higher level. That amount is the maximum supported by the White House, which has threatened to veto any transportation bill that exceeds that level of guaranteed spending or overall spending authority. Expeditious action is considered necessary given the possibility of a Senate standoff over judicial nominees that might effectively shut down the Senate.

State and industry officials have been urging Congress to complete transportation reauthorization legislation before the current law expires at the end of May in order to provide certainty for the funding of long-term pending projects before too much of the current construction season is gone. Many of those officials believe the Senate needs to finish its bill this month to give conferees sufficient time to complete a conference report and avoid an eighth extension since current law first expired in October 2003. Aides on the Environment and Public Works Committee finished their report this week and are ready to bring the legislation to the floor. The House passed its transportation reauthorization bill in March.

DEPARTMENT OF ENERGY

ENERGY INFORMATION ADMINISTRATION INCREASES DIESEL AND OIL PRICE PROJECTIONS

Upward revisions for diesel and oil prices have been forecast by the Energy Information Administration in its March Short-Term Energy Outlook. The EIA now expects the price of diesel to average $2.21 per gallon in 2005, which is 17 cents higher compared to last month's prediction and 40 cents more than the average price of diesel in 2004. The national average price of retail on-highway diesel currently stands at an all-time high of $2.303 per gallon, 39.7 pecent higher than at the same time last year. The cost of crude oil, which accounts for about half of the retail price of diesel, is also expected to remain elevated.

In last month's forecast, the EIA said that oil prices should average $48.95 per barrel in 2005 then moderate to $47.05 per barrel in 2006. It now believes that West Texas Intermediate oil will average over $54.00 per barrel in both 2005 and 2006, far exceeding 2004's average price of $41.44 per barrel. WTI, yesterday, closed at $54.11 per barrel (45.7 percent higher compared to a year earlier), $3.16 shy of last Friday's record high of $57.27 per barrel. ATA will continue to monitor the situation and will keep members informed. The EIA Outlook is at: http://www.eia.doe.gov/emeu/steo/pub/contents.html.

DEPARTMENT OF TRANSPORTATION

NHTSA ISSUES RULES MANDATING TIRE PRESSURE MONITORS

The National Highway Transportation Safety Administration announced yesterday that all passenger cars will have tire pressure monitoring systems beginning with the 2006 model year according to a new NHTSA motor vehicle safety standard. The regulation will require that manufacturers install a system that can detect when one or more of the vehicle's tires are 25 percent or more below the recommended inflation pressure. Phase-in of the new regulation will begin September 1, 2005. All new 4-wheeled vehicles weighing 10,000 pounds or less must be equipped with the monitoring system by the 2008 model year. According to NHTSA, under-inflated tires can adversely affect fuel economy, lead to skidding and loss of control and hydroplaning on wet surfaces. It can also increase stopping distance and the likelihood of tire failures.

NHTSA estimates that 120 lives a year will be saved when all new vehicles are equipped with the tire pressure monitoring systems. In addition, consumers should see improved fuel economy and increased tire life. The manufacturers' average cost per vehicle is estimated to be between $48-$70 depending on the technology used. The tire pressure monitoring system was required by Congress when it enacted the Transportation Recall Enhancement, Accountability, and Documentation Act in 2000. See regulation at: http://www.nhtsa.dot.gov/.

No New Articles

Highway Bill. The Senate Commerce, Science and Transportation Committee is expected to consider highway safety and hazardous materials issues next week as part of the ongoing process involved in passing a highway reauthorization bill. The Senate Environment and Public Works Committee passed its portion of the bill last month, and the House of Representatives approved its highway bill on March 10. After the Senate Commerce Committee and Finance Committee have reported their portion of the bill, the legislation is expected to be considered by the full Senate. Once the Senate has completed its work on the bill, a House-Senate conference committee will convene to iron out the differences.

ATA is tracking a number of critical issues. Among them is the question of how much flexibility Congress will grant to the states to toll Interstate Highways. The Senate may consider an amendment that further limits state tolling authority. In addition, the Senate Commerce Committee may take up a proposal to impose a national freeze on trailer length. The Committee will also address a number of truck safety and hazardous materials transportation issues, including changes to hours-of-service regulations.

Congressional Schedule. House and Senate leaders, already working under a very tight spring schedule to wrap up key legislation and spending bills, are concerned that some agenda items will have to be cut because of the time lost this week due to the death of Pope John Paul II. Several House and Senate members traveled to Rome for today's funeral.