BREAKFAST MEETING WITH SECRETARY SKINNER TUESDAY, FEBRUARY 27, 1990 8:30 A.M. - S-230 Dole (check mark) Simpson (circled) Burns (check mark) Coats (check mark) Danforth (circled) - tentative yes - handwritten: 1402 Domenici (check mark) Grassley (check mark) Kasten (check mark) - handwritten: Pat Lott (check mark) Murkowski (check mark) - will arrive at 9:00 Stevens (check mark) Symms (check mark) - tentative yes ("tentative" crossed out) Warner (check mark) - handwritten: Pat - on his way Secretary Skinner (check mark) Galen Reser, Assistant Secretary for Governmental Affairs (check mark) following names handwritten: Greg (check mark) Burke (check mark) Cochran (check mark) handwritten note at bottom of page: 276-0369 - Whit entire page handwritten; names written around a drawn rectangle (table simulation): left head of table: Dole top long side of table, left to right: Danforth, Simpson, Domenici, Coats, Cochran, Grassley, Symms, Chafee right head of table: Burke bottom long side of table, left to right: Skinner, Stevens, Kasten, Warner, Loft, Burns, Murkowski names written at bottom of page: Lottie Helga Rudell Eddie Frank FEBRUARY 26, 1990 TO: SENATOR DOLE FROM: GREG SCHNACKE SUBJECT: BREAKFAST WITH SECRETARY SKINNER I HAVE CONTACTED STAFF OF ALL PARTICIPATING SENATORS AT THE BREAKFAST TO SEE IF THERE ARE ANY PARTICULAR ISSUES THAT MAY COME UP AT THE BREAKFAST. THOSE THAT RESPONDED INDICATED THE FOLLOWING: STEVENS - CONCERNED ABOUT THE HIGHWAY REAUTHORIZATION BILL. PARTICULARLY REGARDING URBAN VERSUS RURAL FUNDING FORMULA CHANGES. AVIATION - ESSENTIAL AIR SERVICE AND INTERNATIONAL AIRLINE AGREEMENTS THAT ALLOW CARRIERS TO OVERFLY ALASKA. ALASKA OIL SPILL - NAVIGATION AND DOUBLE HULL ISSUES WITH REGARD TO OIL SPILL LIABILITY BILL. MURKOWSKI - SAME AS STEVENS, AS WELL AS CONCERNS ABOUT JAPANESE NOT ALLOWING AMERICAN FIRMS TO PARTICIPATE IN AIRPORT CONSTRUCTION PROJECTS OVER THERE. THIS MAY COME UP IN THE NEXT FEW MONTHS ON AIRPORT AND AIRWAYS REAUTHORIZATION. GRASSLEY - KNOWS THIS IS AN ISSUES BREAKFAST, BUT IS CONCERNED ABOUT WAYS TO BEAT DEMOCRATS AND TO PUSH PROJECTS THROUGH THE APPROPRIATIONS PROCESS TO HELP TAUKE. DANFORTH - HIS TWO ISSUES ARE AIRLINE COMPETITION AND HIGHWAY SAFETY. COATS - HE IS UPSET WITH AN APPARENT BREECH IN THE SITE SELECTION PROCESS FOR A NEW AIRPORT, POTENTIALLY LOCATED IN GARY, INDIANA. APPARENTLY MAYOR DALEY OF CHICAGO ANNOUNCED LAST WEEK THAT HE HAD A PLAN FOR A THIRD CHICAGO AIRPORT, (COINCIDENTALLY IF BUILT IT WOULD ELIMINATE THE WARD MOST OPPOSED TO HIM). THE INDIANA DELEGATION HAS CRIED FOUL, BECAUSE THE AGREED UPON SITE SELECTION PROCESS HAS APPARENTLY BEEN VIOLATED. (SKINNER HAS INDICATED HE APPLAUDS CHICAGO FOR RECOGNIZING THE NEED FOR NEW CAPACITY, BUT WILL NOT STOP THE ONGOING PROCESS - AT A COST OF $500 MILLION. IT HAS BEEN SUGGESTED, BUT IT IS UNCLEAR WHETHER SKINNER SUPPORTS BRINGING CHICAGO'S PROPOSAL INTO THE ONGOING PROCESS. ) I UNDERSTAND THAT YOU HAVE AGREED TO SIGN A LETTER TO SKINNER OPPOSING THIS SHIFT AWAY FROM THE AGREED PROCESS. I HAVE ATTACHED SOME BACKGROUND FROM COATS' OFFICE. DOMENICI - WILL GIVE SKINNER A LETTER EXPRESSING HIS SUPPORT FOR A SAFETY DEMONSTRATION CENTER TO ADDRESS AGING AIRCREFT ISSUES. SECRETARY SKINNER'S AGENDA FOR BREAKFAST SECRETARY SKINNER WILL ADDRESS THE FOLLOWING FOUR ITEMS AT THE BREAKFAST: NATIONAL TRANSPORTATION STRATEGY - TO BE FORMALLY RELEASED MARCH 8. SEE ATTACHED BRIEF. S. 1277 - AVIATION LBO BILL - PROVIDES THE SECRETARY AND THE DEPARTMENT WITH ADDITIONAL AUTHORITY TO REVIEW LEVERAGED BUYOUTS IN THE AVIATION INDUSTRY. SKINNER FEELS THEY HAVE ENOUGH AUTHORITY AND THEY DO NOT WANT THIS BILL BROUGHT UP. OIL SPILL LIABILITY BILL - SEE ATTACHED BRIEF. AIRLINE COMPETITION STUDY - RELEASED LAST WEEK. CONCLUSION OF THE STUDY: THE INDUSTRY REMAINS COMPETITIVE, WITH SOME POCKETS OF CONCENTRATION. IN GENERAL, THE FLYING PUBLIC HAS BENEFITED FROM DEREGULATION. ACCORDING TO WALT, THE CHICAGO AND INDIANA PRESS WILL BE THERE TO TAKE PICTURES AND TALK ABOUT THE GARY, INDIANA AIRPORT PROBLEM. SKINNER NATIONAL TRANSPORTATION POLICY THE SKINNER NATIONAL TRANSPORTATION STRATEGY WILL INVOLVE SPECIFIC REFORMS GROUPED ACCORDING TO FOUR MAIN GOALS: RELIANCE ON THE PRIVATE SECTOR USE OF MARKET PROCESSES APPLICATION OF USER FEES MAXIMIZING LOCAL FLEXIBILITY THIS IS NOT A NATIONAL INDUSTRIAL POLICY OR PLAN AND WILL NOT CALL FOR A FEDERAL EFFORT TO DEVELOP PARTICULAR TECHNOLOGIES, PROMOTE PARTICULAR CHANGES IN TRAFFIC PATTERNS OR SUPPORT PARTICULAR FAVORED TRANSPORT MODES. IT WILL NOT DICTATE TO THE LOCAL TRANSPORTATION AGENCIES THE DECISIONS THEY MUST MAKE. SKINNER OUTLINED IN HIS JANUARY 10TH SPEECH THAT HE WANTED THE FEDERAL GOVERNMENT TO NOT DICTATE RESULTS, BUT TO PROVIDE AN ENVIRONMENT THAT WOULD ALLOW THE PRIVATE SECTOR AND THE MARKETS TO WORK. HE OUTLINED FIVE THINGS HE WANTED TO ACCOMPLISH: STIMULATE PRIVATE INVESTMENT IN TRANSPORTATION REMOVE UNNECESSARY REGULATION APPLY THE USER FEE PRINCIPAL STRENGTHEN LOCAL FLEXIBILITY PROMOTE RESEARCH AND DEVELOPMENT THESE GOALS AND PRINCIPALS WOULD BE APPLIED TO ALL ASPECTS OF DOT'S JURISDICTION OVER AIRPORTS, AIR TRAFFIC CONTROL, HIGHWAYS, URBAN MASS TRANSIT, PASSENGER RAIL, TRUCKING AND MARITIME SHIPPING. HIGHWAY REAUTHORIZATION BILL WE CAN EXPECT SOME PRELIMINARY HEARINGS ON THE HIGHWAY REAUTHORIZATION BILL THIS YEAR. WITH CONGRESSIONAL ACTION EXPECTED NEXT YEAR. SOME OF THE MAJOR THRESHOLD ISSUES WILL BE: USE AND ALLOCATION OF THE HIGHWAY TRUST FUND FUNDING FORMULAS AND HOW THEY AFFECT RURAL VS URBAN STATES WHEN THE FEDERAL INTERSTATE SYSTEM WILL BE FINISHED NEW CONSTRUCTION PROJECTS VS INFRASTRUCTURE MAINTENENCE OIL SPILL LIABILITY BILL THE OIL SPILL CONFERENCE WILL BE CONSIDERING WHETHER TO IMPOSE LIABILITY ON GROUPS THAT ARE IN THE BUSINESS OF CLEANING UP OIL SPILLS. THE HOUSE DOES NOT IMPOSE LIABILITY ON A RESPONSE ORGANIZATION UNDER THE DIRECTION OF THE PRESIDENT EXCEPT IN CASES OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. THE SENATE, HOWEVER, DOES NOT CONTAIN AN IMMINITY PROVISION FOR CLEAN UP CREWS. IT HAS BEEN SUGGESTED THAT MITCHELL MAY BE WILLING TO TRADE ON THIS AS LONG AS IMMUNITY IS NOT EXTENDED TO STATE LAWS. EPA APPARENTLY DOES NOT WANT LIABILITY AT ALL. IT IS MY UNDERSTANDING OMB AGREES WITH THIS VIEW. THEIR POSITION IS THESE RESPONSE ORGANIZATIONS CAN OBTAIN INSURANCE. OMB AND EPA APPARENTLY HAVE CONCLUDED THAT IF IMMUNITY WERE GRANTED TO CLEAN UP GROUPS, FEDERAL AGENCIES MIGHT BECOME LIABLE IF THE PRIVATE CLEAN UP PROCESS DID NOT PRODUCE THE INTENDED RESULT. THE $1 BILLION COMPENSATION FUND, FINANCED BY THE CRUDE OIL OWNERS, IS TO ENSURE THAT NO EFFORT IS SPARED IN THE CLEAN UP. DOT DOES NOT WANT EVERY OIL SPILL FEDERALIZED. THEY WOULD PREFER THE HOUSE POSITION, BUT EXPAND IT TO ALL RESPONDERS. ON A SIDE NOTE, STRIPPER INTERESTS, INCLUDING KIOGA, HAVE EXPRESSED THEIR CONCERN THAT THEY MUST BE TAXED TO PAY FOR THIS COMPENSATION FUND. TALKING POINTS COATS/DOLE INDIANA AIRPORT ISSUE THE DECISION WHETHER FEDERAL TAX DOLLARS SHOULD BE WASTED TO STUDY THE PROPOSED CHICAGO AIRPORT SITE RESTS SQUARELY WITH SECRETARY OF TRANSPORTATION SAMUEL SKINNER. I JOIN WITH DAN COATS TODAY IN OPPOSING THIS BLATENT ATTEMPT TO CIRCUMVENT A PROCESS THAT HAS BEEN IN PLACE SINCE 1986. MAYOR DALEY SHOULD KNOW BETTER: IT IS IRRESPONSIBLE TO CIRCUMVENT THIS PROCESS NOW. THE COST OF THIS SITE SELECTION WILL BE ROUGHLY $500 MILLION - AN AMOUNT THE TAXPAYERS CANNOT IGNORE. I LOOK FORWARD TO WORKING WITH DAN COATS AND SAM SKINNER TO FIND WAYS TO ALLEVIATE CHICAGO'S AIR TRAFFIC CONGESTION PROBLEMS. DAN COATS INDIANA 407 RUSSELL SENATE OFFICE BUILDING (202) 224-5623 (illegible) OFFICE ROOM (illegible) 46 EAST OHIO STREET INDIANAPOLIS, INDIANA 48204 (217) 228-5555 COMMITTEES ARMED SERVICES LABOR AND HUMAN RESOURCES United States Senate WASHINGTON, DC 20510 February 26, 1990 Honorable Samuel K. Skinner Office of the Secretary Department of Transportation Washington, D.C. 20590 Dear Mr. Secretary: As you know, the Chicago region faces an air capacity crisis. The region not only supports the world's busiest airport, but also is central to our nation's air traffic control system. The Federal Aviation Administration estimates that delays at O'Hare cost between $400 million and $800 million a year currently, and demand for service continues to soar. In 1986, the Federal Aviation Administration, in partnership with the states of Illinois, Indiana, and Wisconsin, began a lengthy study process to determine future capacity requirements, and to select the best site in the tri-state region to host a major new airport. Over the course of two years, the FAA examined seventeen potential sites, and recommended four for further consideration. Last October, the FAA obligated $6.5 million to conduct an exhaustive thirty six month study of the four sites, including environmental assessments and air capacity evaluations. The States of Illinois and Indiana entered a cost sharing agreement with the federal government, and established a bi-state policy committee to oversee the project. The lieutenant governors of both states serve on the committee as does Illinois' Secretary of Transportation and the city of Chicago's aviation commissioner. The Administrator of the Federal Aviation Administration has stated publicly that this board has final authority for the site selection, and that no further sites would be considered. we are deeply concerned that the City of Chicago has requested $5 million from the federal government to study a fifth site. Not only is this site not among the final four candidates selected for further study by the FAA, but a site within the city of Chicago was specifically rejected because of air space and environmental considerations during the first phase of the study. 2 Honorable Samuel K. Skinner February 26, 1990 Page Two We are strongly opposed to the further expenditure of federal funds on a study which duplicates work already well under way. The federal government has been a full partner in a thoughtful and deliberate site selection process that has been supported by the region's governments. Granting Chicago's request for federal funding at this juncture threatens to usurp the process and undermine a carefully forged partnership. We urge you to oppose federal funding for Chicago's proposal while the Third Regional Airport Study is pending and will carefully consider legislative prohibitions should the Federal Aviation Administration choose to proceed. Sincerely, (signature) Dan Coats U.S. Senator (signature) Robert Dole U.S. Senator BREAKFAST MEETING WITH SECRETARY SKINNER TUESDAY, FEBRUARY 27, 1990 8:30 A.M. - S-230 (all food orders handwritten) Dole - oatmeal skim milk Simpson - muffins, bacon (crossed out), oatmeal, banana Burns - standard with bacon Danforth - just getting back from overseas if he can get up he will be here fruit plate Domenici - standard with bacon Grassley - standard with bacon Kasten - standard with bacon Lott - standard breakfast with bacon - ketchup Murkowski - will arrive at 9:00 - cold cereal fruit + OJ Stevens - fruit plate, muffin Warner - standard breakfast with bacon Secretary Skinner - standard breakfast with bacon Galen Reser, Assistant Secretary for Congressional Affairs - standard breakfast with bacon handwritten at bottom of page: extra bran muffins and biscuits floral arrangement (small) D'Amato grapefruit bran cereal (crossed out, "NO" written in) Symms tent. yes Grey Schnacke Sen. Cochran yes - oatmeal fruit cup BREAKFAST MEETING WITH SECRETARY SKINNER TUESDAY, FEBRUARY 27, 1990 8:30 A.M. - S-230 CONFIRMED YES Dole (check mark) Simpson (check mark) Stevens Domenici (check mark) Burns (check mark) Grassley (check mark) Kasten Danforth (check mark) - just getting back from overseas if he can get up he will be here Lott (check mark) (handwritten) Warner (check mark) (handwritten) (check mark) add Murkowski (handwritten) Symms - eggs w bacon (handwritten) WILL CALL BACK: Lott (crossed out) Symms (crossed out; handwritten: tent. yes) Warner (crossed out) Durenberger (crossed out; handwritten: NO) ? D'Amato NO Packwood Jeffords Chafee handwritten: Rudman (crossed out) 43324 CATHY - wcb NO Murkowski (crossed out) 46665 CAROL late Hatfield (crossed out) 43753 JANET wcb NO Secretary Skinner Galen Reser, Assistant Secretary for Congressional Affairs line drawn from Murkowski: cold cereal, fruit, OJ February 5, 1990 TO: SENATOR DOLE FROM: SHEILA BURKE, JOYCE MCCLUNEY RE: BREAKFAST MEETINGS We have scheduled Secretary Skinner for Tuesday, February 27, at 8:30 a.m. for breakfast. Listed are the suggested Senators: D'Amato (handwritten: Debbie, wcb, grapefruit bran cereal flakes, tent. yes) Kasten (handwritten: wcb crossed out, JEAN to call back) Domenici (handwritten: YES) Grassley (handwritten: stephanie cb; wcb crossed out; YES; name crossed out) Packwood (handwritten: name crossed out; pam to call back; NO) Burns (handwritten: name crossed out; patty w.c.b.; YES) Gorton Lott (handwritten: Susan will call back - standard w ketchup) Gramm Symms (handwritten: wcb; will call back) Warner (handwritten: wcb; Kathleen to call back) Jeffords (handwritten: sylvia; wcb crossed out; NO; name crossed out) Humphrey Durenberger (handwritten: Julia; N.Y. w.c.b.) Chafee (handwritten: name crossed out; Holly; NO) "Danforth - wcb" handwritten at bottom of list Betty has given us some dates for March did you want to try and do Secretary Cavazos and Secretary Yeutter? (handwritten line drawn from this ending in "?") handwritten notes at bottom of page: dole - oatmeal, fruit cup stevens - muffin, fruit plate ok simpson ok domenici ok burns - standard breakfast, bacon Grassley - standard breakfast, bacon Kasten - standard breakfast, bacon Danforth - tent. yes fruit cup LLOYD black Cadillac MEMORANDUM OF CALL TO: Joyce (handwritten) YOU WERE CALLED BY YOU WERE VISITED BY Tray Evers (handwritten) OF (Organization) Galen Reiser (handwritten) PLEASE CALL --> PHONE NO. CODE/EXT. WILL CALL AGAIN RETURNED YOUR CALL IS WAITING TO SEE YOU WISHES AN APPOINTMENT MESSAGE (illegible handwritten name and phone number crossed out) 366-4563 (handwritten) RECEIVED BY (illegible handwritten initials) DATE 2/5 (handwritten) TIME 4:15 (handwritten) GPO: 1989 22-724 (m) handwritten note on blank page: Joyce - please let me know if I should be there and when. Thanks - B FEBRUARY 1, 1990 TO: SENATOR DOLE FROM: GREG SCHNACKE SUBJECT: MEETING WITH SECRETARY SKINNER GALEN RESER, ASSISTANT SECRETARY FOR CONGRESSIONAL AFFAIRS CALLED ME TO SEE IF YOU WOULD BE INTERESTED IN MEETING WITH SECRETARY SKINNER AT YOUR CONVENIENCE. APPARENTLY THE SECRETARY HAS ENDORSED THE IDEA. HE WOULD LIKE TO TALK ABOUT TRANSPORTATION INFRASTRUCTURE, THE NATIONAL TRANSPORTATION POLICY AND THE FORD LBO BILL, AS WELL AS ANY TOPICS YOU WOULD LIKE TO BRING UP. WOULD YOU LIKE TO SET SOMETHING UP THIS MONTH? YES (check mark) NO handwritten notes on page: Joyce 366-9714 (9714 crossed out; replaced with 4563) stevens simpson