Taking The Hill

By Matthew T. Brown

EPA Issues New OBD Rule
The U.S. Environmental Protection Agency (EPA) has issued a final rule delaying the date when states are required to implement on-board diagnostics (OBD) checks. The notice was published by the EPA in the Federal Register.

The repealed provision would have required OBD checks in Ozone Transport Regions with low enhanced programs by Jan. 1, 1999, and all other basic and enhanced I/M areas as of Jan. 1, 1998. The new implementation date for OBD checks in all areas is Jan. 1, 2001. However, the requirement remains that all states must revise their I/M State Implementation Plans (SIPs) by Aug. 6, 1998, to include the requirement of OBD checks.

Under the new rule, states may require the checks early. However, states may only earn "minimal" emission credits for OBD checks that do not include exhaust and evaporative testing.

EPA is unsure what type of emissions credits should be given to states that do not conduct exhaust and evaporative testing, but is evaluating the credit program. However, states still must submit implementation plans by August that include the checks by Jan. 1, 2001.

EPA remains committed to OBD programs and recently confirmed the importance of I/M programs and said, "I/M programs ensure that cars are properly maintained during customer use."

Managed Care on the Defensive
In response to legislation introduced in the U.S. Congress that would regulate managed health care plans, the American Association of Health Plans (AAHP) has issued a report, "The Managed Care Debate: Correcting the Errors and Omissions." The report cites numerous findings about the quality of managed care in the United States and AAHP asserts that many of the commonly heard views about managed care are inaccurate. The AAHP report attempts to disprove several assertions about managed care. For example, the paper states that rather than restricting patient choice, "The growth of managed care has expanded the options available to consumers."

Senate Committee Holds Hearing on "Auto Choice" Legislation
The Finance and Hazardous Materials Subcommittee of the House Commerce Committee recently held a hearing on Rep. Dick Armey's (R-Texas) "auto choice" legislation. If enacted, the legislation would allow greater choice in insurance plans for consumers.

The legislation would allow drivers to choose between their current auto insurance policy where torts are allowed and a policy in which they give up the right to sue for pain and suffering in most cases. The Auto Choice Reform Act of 1997 was introduced to provide for competition between forms of motor vehicle insurance, to permit an owner of a motor vehicle to choose the most appropriate form of insurance to guarantee affordable premiums, and to provide for more adequate and timely compensation for accident victims. Armey is the Majority Leader in the U.S. House of Representatives. The legislation currently has 14 cosponsors, and it is unclear if it will pass the full House before Congress adjourns this fall.

Legislation Introduced to Delay Implementation of Kyoto Protocol
Sen. John Ashcroft (R-Mo.) has introduced legislation that would prohibit the implementation of the Kyoto agreement prior to its ratification by the U.S. Senate. The Economic Growth and Sovereignty Act was introduced amid fears that the administration would attempt to implement certain aspects of the treaty before the Senate has the opportunity to accept or reject it.

Ashcroft is concerned that the Clinton administration has asked for $250 million in global change initiatives for fiscal year 1999 and he believes these funds will be used to implement the treaty before the Senate ratifies it. Under the Constitution, treaties may be signed by the president, but require a vote of the Senate to be ratified.

Ashcroft is further concerned about the economic harm the treaty may bring.

House Passes Unfunded Mandates Legislation
Legislation has passed the U.S. House of Representatives that would require a review of legislation that would place unfunded mandates on the private sector and encourage debate in Congress on these mandates. Introduced by Rep. Gary Condit (D-Calif.), the measure passed the House in May by a vote of 279-132.

If enacted, the legislation would require that for legislation determined by the Congressional Budget Office to have a yearly impact on the private sector of more than $100 million, any lawmaker could raise a point of order. This would allow 20 minutes of debate on the financial impact on the small-business community.

Significant opposition to the legislation came from the Clinton administration and environmental groups because they believe this legislation could place financial costs over benefits to public health and the environment.

Several amendments were offered to limit the point of order in certain instances; however, the amendments were not accepted by the House.

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AutoInc. Magazine ®, Vol. XLVI, July 1998 (http://www.asashop.org)