MONDAY, APRIL 21, 2008


FLAME ACT MOVES FORWARD

The House Natural Resources Committee adopted the FLAME measure last week. The Federal Land Assistance Management and Enhancement Act, H.R. 5541, would create a new and separate federal fund to fight catastrophic forest fires.

Authorized funding for the new fund would be based on the average amount spent (over the previous five fiscal years) to fight these fires. The funding would then be subject to appropriations.

The FLAME bill, H.R. 5541 was adopted by voice vote. During Committee consideration, an amendment was adopted that incorporates provisions from a competing bill (H.R. 5648) sponsored by Rep. Goodlatte. Among the provisions added to the measure include a requirement that the Departments of the Interior and Agriculture review fires that cost more than $10 million, and requires the Secretaries to notify Congress when the emergency fire budget drops to a level that would only cover two months worth of estimated expenditures.


FARM BILL EXTENDED ONE WEEK

The House and Senate have passed a one-week extension of current farm law; however, there was some doubt if President Bush would actually sign the extension.  The 2002 farm law expires at midnight on April 18. 

President Bush had let it be known that he was not going to sign another extension unless negotiators had made significant progress.  If he does not sign the extension, farm law reverts back to the 1930’s-era law.  If he does sign the extension, then Congress has until April 25 to wrap-up the conference or to simply pass a long-term extension of the 2002 law.

In all, slow progress is being made in conference committee,  But completion of the bill was clearly not expected to happen by the April 18 deadline. 

The chief hurdle remains the cost of $2.5 billion in tax credits that the Senate wants to add to the farm bill, on top of the $10 billion in extra spending that chamber is advocating. The Senate tax credits cover incentives for endangered species protection, alternative energy, and smaller farm-related provisions.  

The House is insisting that any above-baseline spending be kept to a lower amount.  And, that the tax credits be jettisoned because they do not have pay-go offsets or are linked to offsets that are problematic. Conferees and staffers are likely to work through the weekend. 
 


A SECOND ECONOMIC STIMULUS PACKAGE RUMORED TO BE CLOSER TO REALITY

Sources on Capitol Hill report this week that Congressional Democrats are preparing provisions for a second economic stimulus package.

One provision expected to be included is an extension of unemployment benefits (H.R. 5749) passed by the House Ways and Means Committee; under the bill (H.R. 5749), residents in all states would be eligible for an additional 13 weeks of unemployment benefits. Residents in states with unemployment rates at or above 6 percent would be eligible for another 13 weeks of benefits. For now, only Alaska and Michigan meet that criteria.

Additional items that could be part of the stimulus package include infrastructure spending, food stamps, and aid to the states through Medicaid. It is possible that the second economic stimulus package could be added to the war supplemental appropriations bill.


WAR SUPPLEMENTAL ON THE WAY

It appears that House Democrats are considering two potential strategies for dealing with the war supplemental funding bill. 

One idea is to craft one big war supplemental bill that would combine all pending Administration requests for war funding needed in Iraq and Afghanistan.  If agreed to, the strategy would essentially move the war funding issue off the Congressional agenda until the next Administration.  The proposed supplemental would cover the $102 billion requested for Fiscal Year 2008 and the $70 billion or so for FY09 for the wars in Iraq and Afghanistan. 

The second idea is to craft two separate war funding bills; one spending measure for the Iraq war and another measure for the efforts in Afghanistan.

Democrats are also weighing whether or not to attach non-defense domestic spending items to the supplemental, in either format.  Non-defense spending items could total up to $24 billion and cover items like:  county payments/Secure Rural Schools, $490 million for local law enforcement grants, $10 billion for infrastructure projects (bridge and road repairs), $500 million for the World Food Programme, and $350 million for wildfire suppression programs. 

The war supplemental bill, in either format, could also house the second economic stimulus package.


THE WEEK AHEAD: 

This week, the HOUSE is expected to consider legislation that would authorize Coast Guard funding and modify the Deep Water program (HR 2830); a bill to reauthorize two Small Business Administration programs (HR 5819); as well as several measures on the suspension calendar. Floor action on the farm bill is also a possibility.

Meanwhile, the SENATE is expected to take-up a package that focuses on veterans’ benefits (S. 1315) and a measure that would address employee discrimination lawsuits (HR 2831). If floor time allows, the Senate could also consider an FAA reauthorization measure (S. 1300), and a bill that would ban insurance discrimination based on genetic information (HR 493).
 

KEY HEARINGS AND MARKUPS

BANKING:  The Senate Banking, Housing and Urban Affairs Committee will hold a hearing titled, “Turmoil in U.S. Credit Markets: The Role of the Credit Rating Agencies”: Tuesday, April 22 at 10:00 a.m., 538 Dirksen Building.

The Senate Banking, Housing and Urban Affairs Committee will hold a hearing titled, “Turmoil in U.S. Credit Markets: Examining U.S. Regulatory Framework for Assessing Sovereign Investments”: Thursday, April 24 at 10:00 a.m., 538 Dirksen Building.

ENERGY & NATURAL RESOURCES:  The Senate Finance Committee will hold a hearing on the tax aspects of a carbon emission cap-and-trade system: Thursday, April 24 at 10:00 a.m., 215 Dirksen Building.

FINANCIAL SERVICES:  The House Financial Services Committee will mark up Federal Housing Authority mortgage refinancing legislation (H.R. 5818, H.R. 5830): Wednesday, April 23 and Thursday, April 24 at 10:00 a.m., 2128 Rayburn Building.

HOMELAND SECURITY:  The Intelligence, Information Sharing and Terrorism Risk Assessment Subcommittee of the House Homeland Security Committee will hold a hearing titled “Moving Beyond the First Five Years: Evolving the Office and Intelligence Analysis to Better Serve State, Local and Tribal Needs”: Thursday, April 24 at 10:00 a.m., 311 Cannon Building.

TRANSPORTATION & INFRASTRUCTURE:  The Senate Commerce, Science and Transportation Committee will hold a hearing on the report of the National Surface Transportation Policy and Revenue Study Commission, focusing on moving passengers and freight into the future: Tuesday, April 22 at 2:30 p.m., 253 Russell Building.

The Railroads, Pipelines and Hazardous Materials Subcommittee of the House Transportation and Infrastructure Committee will hold a hearing on rail capacity: Wednesday, April 23 at 10:00 a.m., 2167 Rayburn Building.

The Aviation Subcommittee of the House Transportation and Infrastructure Committee will hold a hearing on the reauthorization of the National Transportation Safety Board: Wednesday, April 23 at 2:00 p.m., 2167 Rayburn Building.


CONGRESS MISSES BUDGET RESOLUTION DEADLINE

Every year, Congress is required to have a budget resolution by April 15; they seldom meet that deadline, and Congress did not meet it again this year.

However, it seems the House and Senate may be very close to a budget agreement in some form or another. The House and Senate negotiators have given themselves another week to hammer out an agreement.

If a final budget resolution cannot be completed this week, look for Congress to settle on a deeming resolution so it can proceed with its appropriations work. While a deeming resolution does not offer the structure and certainty of a budget resolution, it aids appropriators in giving them a discretionary spending ceiling to work with, and allows the process to move forward.


ENERGY GRANT HEADED TO UNIVERSITY OF NEVADA, PARTNERS

The Department of Energy announced its plan to invest $50 million over the next five years (subject to appropriations from Congress) in nine demonstration projects aimed at increasing efficiency in the nation's electricity grid.

One of the demo projects selected is a collaboration between the University of Nevada, Pulte homes, Nevada Power Company and GE Ecomagination to address  the construction of energy efficient homes that overcome electricity grid integration, control, and communications issues by building integrated photovoltaic systems, battery energy storage, and consumer products linked to advanced meters that enable and facilitate an efficient response to consumer energy demands. 

The collaboration is for five years at a cost of approximately $21 million, of which $6.9 million would come from the federal government.

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