MONDAY, MARCH 17, 2008

MORATORIUM ON EARMARKS NOT INCLUDED IN FY 2009 BUDGET

As both chambers debated their FY 2009 Budget blueprint, Republicans continued to push for a moratorium on all earmarks. 

The ban on earmarks in the House was included in a substitute proposal put forth by the Ranking Member of the Budget Committee, Paul Ryan (R-WI).  The proposal would have used the $14.8 billion saved by the earmark moratorium to reduce discretionary spending.  The GOP proposal also asked for extending President Bush's landmark 2001 and 2003 tax cuts and retain the alternative minimum tax (AMT) "patch" for three years.  The Ryan proposal was rejected by a 157 to 263 vote.

On the Senate side, an amendment with bipartisan backing and the support of all three presidential candidates was considered.  The amendment proposed by Senator Jim DeMint (R-SC) would have put a one year ban on member-sponsored projects.  Senate Democratic leaders argued that lawmakers best understand their states' funding needs and that it is Congress' Constitutional duty to control spending.  The amendment was rejected by a 29-71 procedural vote.


CONGRESS PASSES SHORT-TERM EXTENSION OF FARM BILL

Congress passed a temporary extension of the farm law, which is now set to expire on April 18, in an effort to give lawmakers more time to finish their negotiations. 

The Senate Agriculture Committee and Senate Finance Committee are having difficulties determining which offsets should be used to fund the extra spending in the bill. 

Among other disputes, the Senate Finance Committee believes farmers should get tax credits instead of government payments when participating in land conservation programs.  However, the Senate Agriculture Committee rejects that proposal.


ABANDONED MINE LANDS AND URANIUM MINING ISSUES ANALYZED

The Senate Energy and Natural Resources Committee held a hearing last week to analyze the issue of abandoned mine lands and uranium mining.  The committee wants to update the 1872 hard rock mining law and to determine the best way to address Good Samaritan liability relief for mine clean-up needs.

Senator Feinstein has written a bill that would create a federal abandoned mine clean-up fund and would impose an 8 percent royalty on gross returns from new mining claims.  The bill would also impose a .3 percent reclamation fee on all hard rock mining claims.


SENATE AND HOUSE MEMBERS START SPRING RECESS; RETURN MARCH 31

The House and Senate left town for the Spring recess last Friday.  The House will return on Monday, March 31.

The Senate will reconvene throughout the break in pro forma session, with the first at noon on Tuesday, March 18.  The pro forma sessions are designed to block the President from making any recess appointments.


EPA DIRECTOR JOHNSON TIGHTENS OZONE AIR QUALITY STANDARD

Last week, the EPA announced that it is tightening the ozone national ambient air quality standard. 

While the new standard is less stringent than recommended by the agency's science advisers, the new standard of .075 parts per million (ppm) still poses problems for some urban areas, including Clark County. The new .075 ppm standard replaces the old standard of .080 ppm. 

The agency believes that this change will provide health benefits at a value between $2 billion and $19 billion.  The Clean Air Scientific Advisory Committee had proposed to place the primary standard between .060 ppm and .070 ppm.

The National Association of Manufacturers opposed the new standard, believing it would be too costly, with estimated costs between $7.6 billion and $8.5 billion annually. Environmental groups argued that the EPA shouldn't have ignored the advice of its own science advisers.  The groups believe that political science has tainted actual science.


ENERGY TAX CREDITS MAY RISE AGAIN

There is some indication that the House and Senate leadership may accept a decoupling of the renewable energy tax credits from the proposed oil and gas tax increases. However, this strategy depends upon the identification of alternate offsets.

Even if different offsets can be found there is a strong likelihood that the extension of the renewable credits will have to be scaled back, possibly limiting them to a one year extension.

On Monday, Senators Baucus, Grassley, and Bingaman met with Energy Secretary Bodman and Treasury Secretary Paulson to discuss possible offsets that would push forward these popular tax incentives without raising a veto threat. No final agreement has been reached yet.

The Nevada Weekly is published on Mondays when Congress is in session.

The next issue of the Nevada Weekly will be published on Monday, March 31, 2008.

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