The SENATE convened at 2:00 p.m. today to take up judicial nominations.  Tuesday, and for the balance of the week, the Senate will take up a tax extenders bill and small business lending legislation.

The Senate will begin the June 21 week with a number of pending judicial nominations.  Senators are expected to continue debate on the House-amended version of the American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act (H.R. 4213), which would extend through the end of the year approximately $31 billion in tax code provisions that expired at the end of 2009.  The House version removes several provisions from the Senate-passed bill, including an extension of federal assistance to states for Medicaid and subsidized insurance for displaced workers. The latest Senate version restores the Medicaid funds and extends unemployment benefits to November 30, 2010.  Senate leaders failed to garner the votes to cut off debate on the bill by a vote of 56-41. Consideration of this bill is expected to resume June 22.

The Senate may also consider a bill that would encourage lending to small businesses (H.R. 5297) and the Federal Aviation Administration Air Transportation Modernization and Safety Improvement Act (H.R. 1586) this week. The FAA bill would authorize FY 2010-2011 appropriations for the FAA and includes provisions to modernize the air traffic control system. The Senate initially passed the bill in March on a vote of 93-0, but must now consider a House amendment to the legislation that would require U.S. inspections of foreign repair stations and increase passenger fees to fund airport improvements. The current short-term extension of the previous FAA bill is set to expire July 3.

The HOUSE convened at 11:00 a.m. today for a pro forma session.  Tuesday, the House is set to take up five measures under suspension of the rules.  Wednesday, and for the balance of the week, the House is expected to take up 12 measures under suspension of the rules and three measures subject to a rule.

KEY HEARINGS & MARKUPS

Agriculture: The General Farm Commodities and Risk Management Subcommittee of the House Agriculture Committee will hold a hearing on issues related to the 2012 farm bill.
Thursday, June 24 at 10:00 a.m., 1300 Longworth Building.

APPROPRIATIONS: The Interior, Environment, and Related Agencies Subcommittee of Senate Appropriations Committee will hold a hearing on Minerals Management Service reorganization.
Wednesday, June 23 at 10:00 a.m., 124 Dirksen Building.

The Defense Subcommittee of the Senate Appropriations Committee will hold a hearing on proposed FY 2011 appropriations for programs under its jurisdiction.
Wednesday, June 23 at 10:30 a.m., 192 Dirksen Building.

The Energy and Water Development Subcommittee of the House Appropriations Committee will mark up the fiscal 2011 energy and water development appropriations bill.
Thursday, June 24 at 1:00 p.m., 2362-B Rayburn Building.

The Defense Subcommittee of the House Appropriations Committee will hold a hearing on proposed fiscal 2011 appropriations for programs and activities under its jurisdiction.
Thursday, June 24 at 2:00 p.m., H-405 Capitol Building.

COMMERCE, SCIENCE AND TRANSPORTATION: The Competitiveness, Innovation, and Export Promotion Subcommittee of  the Senate Commerce, Science and Transportation Committee will hold a hearing titled, “Innovation in America: Opportunities and Obstacles”.
Wednesday, June 23 at 2:30 p.m., 253 Russell Building.

The Senate Commerce, Science and Transportation Committee will hold a hearing titled “Universal Service: Transforming the High-Cost Fund for the Broadband Era”.
Thursday, June 24 at 10:00 a.m., 253 Russell Building.

The Surface Transportation and Merchant Marine Infrastructure, Safety, and Security Subcommittee of the Senate Commerce, Science, and Transportation Committee will hold a hearing on efforts to ensure the safety of the nation’s pipelines.
Thursday, June 24 at 2:30p.m., 253 Russell Building.

ENERGY & NATURAL RESOURCES/ ENERGY & COMMERCE: The Senate Energy and Natural Resources Committee will hold hearings on pending legislation to amend the Outer Continental Shelf Lands Act and a bill to improve the administration of the Minerals Management Service.
Thursday, June 24 at 9:30 a.m., 366 Dirksen Building.

The Senate Energy and Natural Resources Committee will hold hearings on pending legislation to amend the Outer Continental Shelf Lands Act and a bill to improve the administration of the Minerals Management Service.
Thursday, June 24 at 9:30 a.m., 366 Dirksen Building.

ENVIRONMENT AND PUBLIC WORKS: The Superfund, Toxics and Environmental Health Subcommittee of the Senate Environment and Public Works Committee will hold a hearing on the superfund program of the EPA.
Tuesday, June 22 at 2:30 p.m., 406 Dirksen Building.

HEALTH, EDUCATION, LABOR & PENSIONS: Senate Health, Education, Labor and Pensions Committee will hold a hearing on enforcement of the Americans with Disabilities Act and the adherence to the Supreme Court ruling on Olmstead v. L.C., focusing on ensuring community opportunities for individuals with disabilities.
Tuesday, June 22 at 2:30 p.m., 430 Dirksen Building.

OVERSIGHT AND GOVERNMENT REFORM: House Oversight and Government Reform Committee will hold hearings on foreclosure prevention efforts.
Thursday, June 24 at 10:00 a.m., 2154 Rayburn Building.

 
UNCERTAIN TIMETABLE FOR WAR SUPPLEMENTAL IN THE HOUSE

The war supplemental spending bill (HR 4899) remains in limbo.  Over the weekend President Obama renewed his support for $50 billion in assistance to the states (regarding education and Medicaid), but to the consternation of appropriators, he has not sent them formal requests for the funding.  Nor has the President formally requested the $500 million he announced last month in conjunction with the 1200 National Guard to be sent to the Southwestern border.

House Appropriations Committee Chairman Obey especially wants to include $23 billion in aid to the states in order to avoid teacher layoffs.  He has signaled a willingness to reduce the $23 billion by half and/or take money from unobligated stimulus funds to use as an offset. 

Thus, while these pieces remain in limbo, a House mark-up of HR 4899 remains on hold.  Congressional leaders hope to have the bill finished before July 4.  At a different hearing on Wednesday, Secretary Gates informed Senators of the significant disruptions to readiness that will occur if the bill’s military funding is not provided soon.

                                                                                                                          Significant events took place last week.  One was before the House Energy and Environment Subcommittee where Chairman Markey focused on the CEO’s of ExxonMobil, Chevron, ConocoPhillips, BP America, and Shell Oil.  Among other things, the hearing was an opportunity to determine how prepared the companies are for potential oil spills in the Gulf of Mexico.  The other was before the House Oversight and Investigations Subcommittee and featured the testimony of BP chief Tony Hayward and the controversial “shakedown” apology from Texas Congressman Joe Barton.  On Tuesday evening President Obama addressed the nation about the spill and made another push for comprehensive energy and climate legislation.

                                                                                                                                    For its part BP established a $20 billion escrow account to address oil spill claims. The account and its payments will be overseen by Kenneth Feinberg (he performed a similar duty for families and victims of September 11).  Additionally, BP cancelled dividends for the first three quarters, and offered $100 million to provide relief to oil industry personnel affected by the drilling moratorium.

 
COMPROMISE OVER STATE DISTRIBUTION OF HIGHWAY FUNDS AT RISK

A dispute between the House of Representative and Senate over how to distribute funds for highways may reawaken. Senate and the House of Representatives wrote their agreement in the tax extenders bill.  Due to controversy over this bill in the Senate, Senators may amend the agreement in an effort to gather more votes and pass the bill.

Because the extenders bill altered the way in which the $932 million in highway funds was divided, the bill includes $400 million to ensure that each state receives what they were originally promised. This safety net ensures that no state loses significant amounts of money, as would have been the case with Illinois.

While The Senate continues to make progress toward passing the bill, the summer construction season is approaching and the money involved in the bill would be extremely beneficial to the industry.

Last week, Senate Majority Leader Reid met with the entire Democratic Caucus about the path forward on comprehensive energy legislation.  Judging by reports no particular path emerged and Reid is scheduled to meet with them again early next week.  The problem is that no particular bill garners 60 votes and they are discussing what particular combination of bill provisions could get them there.  The best bet still seems to be a base energy bill (most likely Bingaman’s) with competing bills either cherry-picked of their best provisions or simply offered as amendments during the debate.

Meanwhile, Senators Kerry and Lieberman were proud to show-off the EPA’s economic analysis of their bill this week.  The analysis found that the bill would have a low economic impact on American households, less than a dollar a day.

President Obama is also doing his part to move energy legislation forward and has invited a bipartisan group of Senators to the White House on June 23.  He has invited Senators Kerry, Graham, Bingaman, Lugar, Boxer, Collins, Lieberman, and Murkowski. 

While Reid would like the comprehensive energy bill on the Senate floor in July, it is entirely possible that could slip into autumn or even into the lame duck session..