Government Relations

Blumenauer Holds 2nd Trust Fund Meeting

Cong. Earl Blumenauer (D-Ore.) recently confirmed that he is putting together a trust fund/grant program bill, though a finished bill is probably still a long way off. He did this at another in his series of discussions on water infrastructure issues, which was held February 27.

At the discussion, he distributed a brief “discussion outline” of a possible trust fund bill, which raised more questions than it answered. However, what is clear is that many of the central structural problems that have plagued the trust fund/grant program idea are still there. The chief among these problems is the funding source for the program. In the February 27 outline, Blumenauer named five potential funding sources, most of which we have either seen before or are extremely vague. According to the outline, the funding sources could include:

• Per container fees on bottled beverages;
• Taxes on certain flushable products;
• Higher penalties for industrial discharges;
• Corporate environmental taxes; and
• Taxes on agricultural chemicals.

What is clear is that Blumenauer’s timeline is to put off actively pushing for passage of his bill until at least next year. We will likely start seeing draft language in the coming weeks and months. Once we see legislative language, the many questions will, presumably, be answered.

'09 Budget May Include Second Stimulus Package

Senate Democrats are reportedly considering a second stimulus plan as part of a possible larger Budget Reconciliation bill this year. The broad FY 2009 budget blue print the Senate Budget Committee will mark up shortly will likely set aside $35 billion for another stimulus package. This new spending may not be off-set with other budget cuts, going against the “pay-as-you-go” rules Congress adopted last year.

According to Congressional Quarterly, “…the stimulus options being discussed include extending unemployment insurance, boosting spending on food stamps, providing additional funding for a low-income energy program and possibly funding road or water infrastructure projects that could be started right away” (emphasis added).

The budget resolution is non-binding and sets the parameters for tax and spending decisions made by Congress. The larger question is if Congress will use the formal budget reconciliation process this year. The process allows legislation to pass in the Senate without threat of a filibuster, but does require the bill to be fully off-set, which is problematic.

Water Utility Inclusion In Chemical Security Bill Likely

The House Committee on Homeland Security is close to introducing a new and controversial chemical facility security bill that would: allow states to expand regulations beyond federal mandates; mandate that chemical facilities nationwide replace some chemicals with less hazardous alternatives; and extend the scope of the Department of Homeland Security’s (DHS) authority to implement security protocols for sites handling and storing toxic chemicals to include water treatment and wastewater treatment facilities. Currently, DHS regulations do not cover water and wastewater treatment facilities.

Mr. Kevin Wattier, general manager for the Long Beach, Calif., Water Department and constituent of Representative Zoe Lofgren (D-Calif.), a Democrat on the Homeland Security Committee, testified at the hearing. He supported the authorization of appropriations for voluntary integration of inherently safer technologies. The latest draft of the bill includes $100 million for such measures.

The draft legislation is expected to be marked up by the full committee on March 6.

"Renewables" (Solar Tax) Bill Passes House, Again

The House once again passed legislation to boost production of renewable energy containing a provision NAWC supports. The bill, H.R. 5351 passed 236-182. The bill faces an uncertain future in the Senate.

As has been reported, H.R. 5351, is essentially the same language that was ultimately dropped from an energy bill last fall. Under the provision NAWC supports, businesses using renewable energy — such as solar — could receive a tax credit. The language NAWC supports would extend that credit to utilities.

Republicans and the White House oppose the larger bill because it raises taxes on, primarily, oil companies to pay for the bill. Senate Democrats are considering how to consider the bill, but one idea is to wrap it into a larger Budget Reconciliation Act many are predicting for this year (see related article).

Some Spending Bills Maybe Postponed Until ‘09

The Chairman of the House Appropriations Committee, David Obey (D-Wisc.) is warning Bush Administration officials that Democratic leaders may elect to hold back a number of the FY 2009 appropriations bills until 2009. The goal would be to avoid the time consuming battles that took place last year, and assumes the next president will be a Democrat.

Congressional Democrats were frustrated in 2007 when the administration insisted on its lower spending levels, and would not budge. Ultimately, the Democrats agreed to the administration’s spending levels. Obey’s comments are intended to show the administration that the Democrats feel they have a stronger hand this year with time on their side.

Congress is currently holding a series of hearings on the budgets of the federal agencies in advance of writing the FY 2009 appropriations bills this spring. They will then move through committee and to the House floor during the summer. The Senate follows a similar pattern and in theory the two chambers then negotiate final bills, generally with the administration involved, which are then sent to the president for signature. Obey is suggesting that the process, at least with some of the bills, may be put on hold before the Bush Administration gets involved.