Government Relations

Stimulus Package Expected Soon
Accelerated Depreciation Possible

The Bush Administration and congressional leaders are working on a legislative economic stimulus package that could move through the process very quickly. Specific proposals will be emerging very soon but early estimates are that the package is expected to cost nearly $100 billion.

By not drawing any lines in the sand, Democrats and Republicans are signaling that they want to work together on this, at least for now. For example, the Democrats are not insisting that the budget “pay-go” rules apply to the package, and the Republicans aren’t insisting on extending the Bush first-term tax cuts.

This doesn’t mean there aren’t different ideas of how to stimulate the economy. The divide is an age-old one: tax cuts vs. more deficit spending. One idea that is preliminarily supported by both parties is a one-time tax rebate to taxpayers. In an election year, this is a politically popular provision. Generally, there is also an agreement that the stimulus package will include temporary provisions, and in fact may be limited to only temporary provisions.

Virtually every kind of stimulus is being considered, including:

• Middle class tax breaks;
• Tax rebates;
• Corporate tax breaks;
• Accelerated depreciation; and
• Infrastructure spending.

$202.5 Billion Needed For Wastewater

The Environmental Protection Agency (EPA) just released its 2004 Clean Watersheds Needs Survey, which estimates $202.5 billion is needed to control wastewater pollution. Delivered to Congress this week, the report summarizes the results of the agency's 14th national survey on the needs of publicly owned wastewater treatment works. The estimate includes $134.4 billion for wastewater treatment and collection systems, $54.8 billion for combined sewer overflow corrections, and $9.0 billion for stormwater management.

"Water infrastructure is a lifeline for health and prosperity in communities across America," said Assistant Administrator for Water Benjamin H. Grumbles. "EPA is working with our partners to promote sustainable solutions and help utilities and households save money, water and energy."

The needs in this survey represent a $16.1 billion (8.6 percent) increase (in constant 2004 dollars) over the 2000 report. The increase in overall national needs is due to a combination of population growth, more protective water quality standards and aging infrastructure.

Election Commission With Leadership Void

The Federal Election Commission (FEC) began 2008 with only two of its six commissioners in place. The result is a leadership crisis for the FEC since at least four commissioners are needed for the body to conduct business. Without a quorum, the FEC cannot issue opinions or levying fines, though the day-to-day business of the 375 staff members continues.

The dearth of commissioners is due to a political stand-off between the president and the Democrats controlling the Senate. President Bush's recess appointments of three commissioners lapsed at the end of 2007. The Senate took no action to formally confirm the three commissioners, which would have allowed the commissioners to keep their posts.

The Senate has not acted due primarily to opposition to one of the nominees, Republican Commissioner Hans von Spakovsky. Liberal groups have attacked von Spakovsky for advocating use of photo identification at the polls. Democratic Senators Barack Obama (Ill.) and Russ Feingold (Wisc.) placed holds on his confirmation. In response, the Republican leadership has refused to allow confirmation of any other nominees to move forward and the White House has refused to withdraw von Spakovsky’s nomination. The nominations, however, are still pending before the Senate so the body could act at any time if an agreement is reached.

Gas Tax Proposed for Ailing Highway Trust Fund

In an indication of the controversial nature of federal trust funds, a potentially heated debate began on increasing the federal gas tax as a means for funneling additional federal dollars toward the highway trust fund. Supporters of the water trust fund are keeping an eye on this debate to gauge their strategy.

Increasing the federal gas tax was proposed in a series of recommendations by a study issued by the National Surface Transportation Policy and Revenue Study Commission. The study was commissioned to explore what to do about the bankrupt highway trust fund and how to inject extra dollars into the federal transportation fund, which continually fails to keep up with the nation’s needs.

The Bush Administration has consistently opposed any boost to the gas tax, arguing that it is an inefficient way to pay for future transportation projects. Likewise, ranking Member of the Senate Finance Committee Chuck Grassley (R-Iowa) with jurisdiction over tax issues publicly announced that the gas tax is an “old, cold, bad idea.” Additionally, the idea has yet to gain any significant traction on Capitol Hill.

EPA Releases SSP Executive Summary

The Environmental Protection Agency’s (EPA) Water Security Division (WSD) has recently made available the Water Sector-Specific Plan Executive Summary on its Web site.

The information in this brochure provides more details on how drinking water and wastewater (Water Sector) partners are working together to enhance the security posture of critical Water Sector infrastructure.

Please visit the WSD Web site at www.epa.gov/watersecurity for more information. You can directly access the fact sheet at: http://www.epa.gov/safewater/watersecurity