By Nathan Hurst and Richard E. Cohen, CQ Staff

House Republicans say they are willing to walk away from highway bill talks if they cannot get what they want on issues including approval of the Keystone XL pipeline and limiting the EPA regulation of coal ash, a move that clouds prospects for completing legislation before the June 30 deadline.

“If we can’t get serious about finding common ground, the bill will fail,” said Pennsylvania Republican Bill Shuster, a House Transportation and Infrastructure subcommittee chairman and a deputy whip.

Shuster acknowledged that the House GOP leadership’s inability to pass its five-year, $260 billion transportation proposal (HR 7) “weakens our hand in the conference committee.” But, he added, “It’s not an option for us to give away the House position.”

Shuster said House conferees will insist on provisions to relax some environmental laws, limit regulation of coal ash, mandate quick approval of the pipeline and expand oil and gas production on public lands and in federal waters. Republicans are counting on revenue from increased energy production to bolster the Highway Trust Fund.

Transportation and Infrastructure member Randy Hultgren, a freshman Republican from Illinois, also expressed pessimism about prospects for a final deal. “It’s become political,” he said. “Neither side is motivated to make agreements.”

Unless progress is made this week, Hultgren added, the House and Senate “probably will give up” and pass another extension of current highway programs through the end of the year.

Industry lobbyists have also dimmed their outlook on prospects for conferees to wrap up their work before the current extension (PL 112-102) expires at the end of the month.

A Significant Disconnect

While Environment and Public Works Chairwoman Barbara Boxer, D-Calif., and other Senate Democrats “have a policy incentive to move quickly,” an industry lobbyist said, “the reverse is true for the House.”

That does not bode well for Senate Democrats, who had been hoping to position their two-year, $109 billion transportation bill (S 1813) as the basis for a conference agreement. Boxer, who is serving as conference chairwoman, has said that about 80 percent of the transportation title is “non-controversial.”

But there has been a significant disconnect between House and Senate negotiators on the remaining issues of disagreement.

Senate Democrats contend they have already conceded significant ground to Republicans in negotiating their chamber’s bill. Instead of passing its own full highway reauthorization, the House opted to pass a 90-day extension (HR 4348).

Senate negotiators have balked at accepting House provisions that were part of the House authorization bill that was never brought to the floor. That has irritated some House Republican freshmen who feel sidelined by the conference process.