The Battalion. (College Station, Tex.) 1893-current, January 26, 1995, Image 11

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Thursday • January 26, 1995 U'HE ^AXXALION The Battalion • Page 11
Emissions testing program faces hurdles
Program could harm future financial
circuits, negotiations, reputation
AUSTIN (AP) — When the
House takes up legislation
Thursday to suspend mandatory
auto emissions testing, there
may be more on the line than
the program itself. The state’s
reputation also is at stake, some
lawmakers say.
“One of the issues that we
have to look at is whether or not
a contract with the state of
Texas means anything,” Rep.
Patricia Gray, D-Galveston, said
Wednesday.
It’s been one of the primary
questions during the debate over
a three-month delay in the pro
gram: Would the state be finan
cially liable if it suspends or
eventually scraps the project?
The answer varies, depending
on whom you ask.
Sen. John Whitmire, a Hous
ton Democrat sponsoring the bill,
says no. So does John Hall, chair
man of the Texas Natural Re
source Conservation Commission,
which oversees the program.
Tejas Testing Technology, the
company contracted to conduct
the tests, disagrees, as do some
House members.
Federal law requires auto
emissions testing to reduce pol
lution in Dallas-Fort Worth,
Houston-Galveston, Beaumont-
Port Arthur and El Paso. Dri
vers must pass an emissions test
to get their license tags renewed.
Critics say the testing is too
costly and inconvenient and
want the 90-day moratorium so
that the program can be revised.
“The contract is drafted in such
a way that there is potential lia
bility for the state,” says David
Sokolow, a University of Texas
contract law professor hired by
Tejas to examine the contract.
The contract states that if Te
jas ends the program, the compa
ny is entitled to reimbursement.
If the state changes the program,
Tejas is not entitled to reimburse
ment but may petition the Legis
lature for compensation.
Ms. Gray, who voted against
the bill for a delay in a House
committee, acknowledges that the
question of liability is debatable.
What’s more important, she
said, is how the state’s action in
this matter could affect its image
for future business deals.
Several legislators find the
idea of “deliberately breaching a
contract to be very distasteful,”
Ms. Gray said.
“Most Texans take a lot of
pride in the fact that their word
is their bond, and when we say
we’re going to do something, we
try our best to do it,” she said.
Leon Lebowitz, corporate law
professor at UT, said that if the
state reneges on this contract,
“some companies might think
twice before entering in a deal
with the state.”
Bob Miller, president of Tejas
Testing Technology, said the de
lay would cost the company
$10.3 million. The company has
spent a total of about $100 mil
lion on the program, he said.
Ms. Gray said she will propose
an amendment to the bill to con
tinue the testing on a voluntary
basis during the moratorium.
That would “give revenue to
the operators so that they can
stay in business while we try to
work on making this more conve
nient for the consumers,” she said.
As incentive for consumers to
participate, Ms. Gray proposes
that the cost of the emissions
test be credited against the li
cense tag renewal fee.
Whitmire said he opposes Ms.
Gray’s idea and called the con
tractual concerns “scare tactics”
by Tejas “to try to keep a badly
designed program in place.”
“Some members of the Legis
lature are putting the interests
of Tejas ahead of the interests of
the general public, who I guar
antee cannot meet the require
ments of the mandatory auto
emissions test,” he said.
Gov. George W. Bush said the
Legislature should delay the pro
gram, then deal with the con
tract with Tejas.
“Well determine after the 90-
day period ... any proper re
course necessary under the
terms of the contract,” said
Bush, pledging to sign the bill
into law.
“Let’s let the democratic sys
tem work. Let the Legislature
exert its will and determine
what the course of action is,”
Bush said.
Attack on helium reserves raises eyebrows
Clinton's proposal to cut
reserves breeds uncertainty
WASHINGTON (AP) — President Clin
ton’s State of the Union attack on the Texas-
based federal helium reserve came as a sur
prise to the program’s operators, government
overseers and members of Congress.
After all, it was only a year ago that his
administration stressed its support for the
oft-attacked program based near Amarillo.
But there Clinton was Tuesday night, hold
ing the helium reserve out as a cut he will pro
pose to Congress as a way of making govern
ment “smaller, less costly and smarter.”
“We propose to cut $130 billion in spend
ing by shrinking departments, extending
our freeze on domestic spending, cutting 60
public housing programs down to three
(and) getting rid of over 100 programs we
do not need like the Interstate Commerce
Commission and the helium reserve pro
gram,” he said.
“It’s discouraging,” the reserve’s general
manager. Bill Moore, said Wednesday. “This
may be the most concentrated effort that
we’ve experienced regarding cancellation.”
Officials at the Interior Department,
which oversees the reserve, declined com
ment pending release of Clinton’s budget
blueprint on Feb. 7th. “We didn’t know
that would be in the State of the Union last
night,” one spokesman said.
Clinton’s proposal was denounced by
Rep. Mac Thornberry, the freshman Re
publican whose Panhandle district includes
the reserve.
“Eliminating the program wouldn’t help
the deficit one bit,” said Thornberry, who
criticized Clinton for targeting a program
that doesn’t receive an annual federal ap
propriation.
“Regardless of what one thinks about
the government being in the helium busi
ness, it is a poor example of budget cuts to
hold up before the entire nation.”
The helium was purchased with a $252
million Treasury loan that remains unpaid.
Interest has ballooned the debt to $1.4 bil
lion and continues to rise-providing a juicy
target for deficit-cutters.
Last year Congress did not act on the
legislation.
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