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Nov. 3, 2006

Most of the current media coverage rightfully focuses on the upcoming election. We encourage readers to access the Links to various websites to view and review candidate positions on key issues and other websites that include election issue coverage. To supplement candidate information, we have prepared a comparison of gubernatorial candidates Jim Doyle and Mark Green on three issues of broad interest to our clients and readers; civil justice reform, health care, and energy policy.

Also new on our web is Bob Fassbender’s ozone update that documents dramatic improvements to Wisconsin air quality. We are optimistic that the Administration and Wisconsin DNR will aggressively seek to unwind some of more burdensome regulatory mandates that are no longer required now that we meet the federal ozone standard.

There are also 20 Legislative Council Special Interim Study Committees that are exploring many significant issues that will likely lead to legislative proposals in the 2007 Legislative Session. Information relating to all of the committees, including committee membership, briefing papers and meeting summaries are available on the Legislative Council website.

Policy Developments

Dramatic Improvements in Ozone Levels should lead to Regulatory Relief
Using preliminary ozone data for the 2006 ozone season, which ended on September 30, Hamilton Consulting’s Bob Fassbender prepared an ozone update demonstrating the dramatic improvements in ozone levels over the past few years. After decades of straining under federal Clean Air Act ozone mandates, virtually the entire state of Wisconsin now meets the stringent new 8-hour ozone standard – years before the 2009/10 compliance deadlines. Those two counties that barely missed hitting the standard (Door and Sheboygan) are on a glide-path to do so before the upcoming deadline.

Substantial regulatory relief should be just around the corner for businesses and citizens located in those Wisconsin counties previously violating the federal ozone standard. At this time, however, DNR continues to advance costly regulatory programs that are no longer needed. We will know soon if industry will see the long-awaited and much deserved compliance dividend.

Mapping the Road to Ozone Compliance (Click grahics to Enlarge Maps)

Industry Pans DNR’s Efforts to Set Energy Policy
On Oct. 23, DNR comment period ended on its proposal to implement EPA’s Clean Air Interstate Rule (CAIR). Under CAIR, EPA requires utilities to reduce air pollutants drifting across state boundaries that contribute to violations of particulate matter and ozone standards. Generally, DNR’s “alterations” to the EPA CAIR rule establishes a policy preference for natural gas and renewables to the detriment of coal.

DNR’s rational for the draft rule is set forth in its August 2006 background memo to the Natural Resources Board. Industry’s comments focus on the inappropriateness of DNR setting energy policy (usurping the authority granted by the Legislature to the Public Service Commission of Wisconsin), and the adverse energy cost implications. Industry viewpoints are set forth in comments by Wisconsin Manufacturers & Commerce, Wisconsin Utility Association, Wisconsin Industrial Energy Group, and the  Wisconsin Paper Council.

Rental Car Taxes Drive up Costs
The taxation of rental car usage has significantly increased in recent years. Rental car taxes exist in 38 states and are under consideration in many others. Such taxes are above and beyond standard retail sales taxes, vehicle licensing fees, and other taxes and fees.

The car rental industry has headed up a campaign to raise public awareness about the impact of car rental taxes. A recent article in Auto Rental News cites a study by economists William Gale and Kim Rueben that concludes that car rental taxes are inconsistent with basic principles of good taxation.

Looked at by governments as a source of funding for cash-strapped budgets, the taxes are often used to support local funding for such things as sports stadiums, art centers and convention centers. In Wisconsin and several municipalities, the rental car tax is a key funding source for public transportation projects. In Milwaukee, the latest municipality to increase car rental taxes, are using the money to help fund a study to make recommendations about local mass transit options.

Examples of car rental taxes:

Study Committee to Tour Yucca Mountain Nuclear Repository
The Legislative Council’s Special Committee on Nuclear Power will tour the proposed spent fuel disposal facility being developed by the U.S. Dept. of Energy (DOE) at Yucca Mountain, Nevada, on Dec. 5, 2006.

The DOE began studying Yucca Mountain in 1978 to determine whether it would be suitable for the nation's first long-term geologic repository for spent nuclear fuel and high-level radioactive waste. Currently stored at 126 sites around the nation, these materials are a result of nuclear power generation and national defense programs.

Members of the committee include: Rep. Phil Montgomery (chair), Sen. David Hansen, and Reps. Robin Vos, Chuck Benedict, and Mark Honadel.

Wisconsin Early Stage Symposium Helps Emerging Companies
Become ‘Venture Ready’
The second annual Wisconsin Early Stage Symposium was held October 30-31, 2006 at the Monona Terrace Community and Convention Center in Madison, Wisconsin.

The two-day conference included workshops to help both investors and budding entrepreneurs understand the basics of angel and venture investing and learn about other resources available to entrepreneurs.

The Wisconsin Early Stage Symposium was co-produced by the Wisconsin Technology Council, which is the non-profit science and technology adviser to the Governor and the Legislature, and a number of statewide and regional partners.

Transportation Funding Stressed
The Transportation Development Association (TDA) held its annual meeting in Madison on Thursday, October 26. The focus of the meeting was on public opinion and political will relating transportation funding and investment, particularly among Wisconsin’s business community, politicians and general public. Attendees heard from TDA Executive Director Bob Cook on the importance of maintaining the integrity of the Transportation Fund and urging members of the business community to stress the importance of a safe and efficient transportation to the economic vitality of Wisconsin.

Transportation funding will be a major factor in the 2007-09 biennial budget bill when the legislature comes back for the 2007-08 legislative session. The segregated transportation fund was raided the last two budgets and transportation stakeholders are preparing to defend the fund in the upcoming budget.

Political News

Stars come out for governor's race: Milwaukee Journal Sentinel, Nov. 1, 2006.

Negative ad blitzes warrant reforms (opinion): Green Bay Press-Gazette, Nov. 1, 2006.

Finding the right Rx (opinion): Milwaukee Journal Sentinel, Nov. 1, 2006.

Clear choice on stem cells (opinion): Milwaukee Journal Sentinel, Nov. 1, 2006.

TV ad money surpasses $10 million: Milwaukee Journal Sentinel, Oct. 31, 2006.

No single issue likely to determine outcome: Green Bay Press-Gazette, Oct. 31, 2006.

Poll: Falk leads attorney general's race: Green Bay Press-Gazette, Oct. 31, 2006.

Political parties’ spending on ads positively negative: Eau Claire Leader-Telegram, Oct. 31, 2006.

Governor candidates on the issues: Marshfield News Herald, Oct. 31, 2006.

A clear choice on crime (opinion): Milwaukee Journal Sentinel, Oct. 31, 2006.

Give Green chance to mend state's fiscal fix (opinion): Janesville Gazette, Oct. 31, 2006.

Candidates focus on health insurance: Manitowoc Herald Times, Oct. 31, 2006.

State Assembly candidates present varied views: Ashland Daily Press, Oct. 30, 2006.

Falk, Van Hollen stress differences: Milwaukee Journal Sentinel, Oct. 30, 2006.

Secretary of state race livens up: Milwaukee Journal Sentinel, Oct. 27, 2006.

State senate candidates present views: Ashland Daily Press, Oct. 27, 2006.

10% in state expected to vote before election day: Milwaukee Journal Sentinel, Oct. 27, 2006.

Gard: ‘He’s a liberal, I’m a conservative’: Lakeland Times, Oct. 27, 2006.

Kagen: ‘Gard is nothing he says he is’: Lakeland Times, Oct. 27, 2006.

Falk, Van Hollen compare résumés: Milwaukee Journal Sentinel, Oct. 26, 2006.

Health care is issue No. 1 (opinion): Milwaukee Journal Sentinel, Oct. 25, 2006.

Senate hopefuls spar over taxes, health care: Sheboygan Press, Oct. 25, 2006.

Van Hollen merits post of attorney general (opinion): Green Bay Press-Gazette, Oct. 25, 2006.