CONGRESS CONTINUES TO FOCUS ON ENERGY RELATED LEGISLATION
As a counter-proposal to Republican demands for increased offshore drilling, House Democratic Leaders will now be offering their own “pro-drilling” measure in the weeks ahead. The combined package is expected to resurrect the “use it or lose it” bill that would require energy companies to drill on the federal leases they have now or to lose them. The Democratic alternative would not open up any new drilling sites; it would accelerate the pace of lease approvals in Alaska’s National Petroleum Reserve, would call for the oil and natural gas pipelines in Alaska to be completed as soon as possible, and would resurrect a ban on the exportation of Alaskan oil.
Separately, House Democratic Leaders are also calling for the President to release oil from the Strategic Petroleum Reserve. And, the chamber is expected to bring legislation to the floor soon that would try to prevent oil futures trading from being distorted or manipulated by excessive speculation.
House Republicans do not appear ready to back down in their demands for more offshore drilling. They are also circulating a series of discharge petitions to force votes on other energy legislation, particularly those sponsored by Democrats. For example, Republicans are gathering support for Rep. Boucher’s bill (H.R. 2208) that would let DOE approve loans to stimulate commercial projects that convert coal into liquid fuel.
PROSPECTS FOR RENEWABLE ENERGY TAX EXTENDERS UNCERTAIN
Senator Ensign (R-NV) lost his battle this week to extend the expiring renewable energy tax credits. He had hoped to attach them to the unrelated, but must-pass housing/foreclosure bill (H.R. 3221) pending before the Senate.
By weeks end, Senators voted overwhelmingly to pass the housing bill without further delay or complications. The outlook for extending the renewable energy tax credits remains uncertain.
CONGRESS TO WAIT FOR NEXT ADMINISTRATION TO NEGOTIATE APPROPRIATIONS LEGISLATION
At this point, Congress has its eye on a September 26 adjournment date and would not come back for a lame duck session after the November 4 elections. Democratic leaders are signaling that probably none of the appropriations bills will be sent to President Bush. The only exceptions might be Defense, Military Construction-VA, and perhaps Homeland Security related appropriations legislation.
Instead, Congress will most likely pass a continuing funding resolution before adjournment and will wait to negotiate the FY 09 spending bills with the new administration. In the meantime, Congress is now moving to consider a second supplemental measure that would cover the most immediate domestic needs. If this schedule holds, Congress will have roughly six weeks to wrap-up their work for the year.
CONGRESS CONSIDERING DOMESTIC SPENDING SUPPLEMENTAL
To bypass a rocky appropriations process, Democratic leaders are now moving towards a second supplemental spending bill to cover immediate domestic items. The domestic supplemental could contain funding for LIHEAP, the Byrne law enforcement grants, infrastructure projects, and more aid for the recent flood damage in the Midwest. It could also include funding for the California fires. The Senate Appropriations Committee is scheduled to mark-up the package on July 22.
There is also talk about a second economic stimulus package. That measure, which could cost about $50 billion, could be moved separately or incorporated into the domestic supplemental that is taking shape.
CONGRESS LOOKS TO COMPLETE WORK ON HOUSING LEGISLATION THIS WEEK
Work on a housing-recovery package could be finished as early as this week. The Senate passed its version of the legislation on Friday, 63-5. The legislation is designed to restructure the oversight on Fannie Mae and Freddie Mac, overhaul the Federal Housing Administration's mortgage insurance program and permit the FHA to guarantee up to $300 billion in new loans for subprime borrowers. The legislation would also create an affordable housing trust fund.
The bill must now go back to the House, which has already passed its version. Lawmakers expect the House leaders to make small changes to the bill as certain aspects, such as $3.9 billion in Community Development Block Grants, are not offset. Despite differences, House Speaker Pelosi (D-CA) expects House negotiators "will arrive at a bipartisan, bicameral compromise with our Senate colleagues."
HOUSE PASSES FORESTRY BILL
The House passed the Federal Land Assistance, Management and Enhancement Act (FLAME) bill this week on a voice vote. The measure, HR 5541, creates a new account for emergency funding of wildfire suppression for the Forest Service and the Department of the Interior.
