U.S. Rep. James Oberstar, D-MN, has released a $500 billion, six-year proposal to revamp the nation’s surface transportation systems.

The plan includes $337 billion for highway construction, $100 billion for public transit and $50 billion for a nationwide high-speed rail system. It also would streamline the U.S. Department of Transportation, cutting 75 programs and consolidating others.

Oberstar, who chairs the U.S. House Transportation and Infrastructure Committee, announced his plan on June 18, even though Transportation Secretary Ray LaHood had request a day earlier that the committee postpone the plan for 18 months due to a shortage of funds.

Congress may decide to delay the program for the same reason, but supporters are hoping to pass it by Oct. 1, when the current program expires.

ArcelorMittal cuts iron ore price

The world’s largest steel producer ArcelorMittal and Brazilian mining group Vale have agreed to a huge cut in the price of iron ore for a new supply contract, Vale announced June 22.

The negotiated price of iron ore had fallen by 28-48 percent since 2008, depending on the ore category.

Arcelor Mittal has stakes in two East Range iron ore mines. It owns and operates the Minorca mine near Virginia and owns 62 percent of Hibbing Taconite, managed by Cliffs Natural Resources.

Fond du Lac band wants land back

Fond du Lac tribal Chairwoman Karen Diver asked the St. Louis County Board on June 15 to reverse its opposition to the band’s plan to buy back tax-forfeit land within reservation boundaries for development of housing, nature preserves and economic expansion. Since January a county board majority has opposed the sale because the land would remain exempt from St. Louis County property taxes.

The land was designated to the reservation in the Treaty of 1854, before St. Louis became a county and Minnesota a state, but much of it subsequently was taken back and sold to settlers, railroads and lumber companies. Diver noted the several thousand acres the band wants back is relatively insignificant.

Another layoff hits Stanley/LaBounty

A unit of Stanley Works in Two Harbors laid off 31 more employees in early June, reflecting soft worldwide demand for the hydraulics shears it produces for the demolition industry.

The workforce reduction at Stanley/LaBounty follows an earlier first quarter layoff of 36 workers at the Two Harbors plant. A spokesman said 89 workers remain on the Stanley/LaBounty payroll.

Ashland waterfront clean-up bill nears $100 million

One of Wisconsin’s larger Superfund sites finally has a definitive clean-up plan.

The U.S. Environmental Protection Agency proposal to clean up Ashland’s waterfront will cost between $83 million and $97 million and take four years to complete.

The comprehensive plan calls for digging out contamination from saw mills and a coal gasification plant that polluted the Chequamegon Bay waterfront dating to the 1880s.

A predecessor to Xcel Energy owned the plant, leaving Xcel partially responsible for paying the costs. Xcel and others held jointly and severally liable for cleanup have 30 days to comment about the plan.

Biker tour draws bad press

On June 22, a group of 60 to 80 motorcyclists rode through Ashland, Bayfield and Superior and spent the night in Duluth. It was part of a five-day trip promoting tourism in Milwaukee, home of Harley Davidson.

The annual event has been held since 2003 but this one was controversial. Tour leader Scott Walker is a Republican candidate for governor. AirTran Airways paid nearly $3,000 in sponsorship.

Milwaukee County officials filed a complaint to the state Election Commission, charging the tour was publicity for Walker’s campaign and AirTran’s support constitutes an illegal campaign donation.

Walker defended the tour as part of his job as Milwaukee County executive to promote tourism, and said the corporate support saved taxpayers from footing the bill.

St. Louis County approves train study

On June 23 the St. Louis County Board approved a study of the proposed Northern Lights Express high-speed railroad between Minneapolis and Duluth. The $2.2 million study will identify environmental impact and preliminary engineering issues.

Federal and state funding sources and municipalities along the route will finance the study. The approval does not commit county funds, and only would establish the county as the fiscal agent.

Commissioners Dennis Fink and Chris Dahlberg voted against the study, saying the action may commit the county to future funding. Commissioner Steve Raukar chairs the Northern Lights Express alliance.

The county will host an open house on plans for a new rail terminal on Wednesday, July 8, from 4-6 p.m. at the Depot in downtown Duluth.

• Oberstar introduces transportation bill -6/30/2009
• MPUC denies Excelsior’s power purchase agreement -6/3/2009
• Kennecott Ladysmith mine sets cleanup standard -4/29/2009
• Mn/DOT kicks off 2009 construction season -4/9/2009
• Xcel Energy pays setlement for Ashland pollution -4/1/2009