The Battalion. (College Station, Tex.) 1893-current, January 26, 1995, Image 11
Uspn*' 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. Get the home field advantage with the 12th Man Checking Account F irst American Bank knows the demands of college usually don't leave you a lot of time to worry about your banking needs. But we also know that cashing checks can sometimes be a hassle for students, especially when your money is in an out-of-town bank. 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