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LEGISLATION COMMITTEE
Meeting Date: 05/07/2015  
Subject:    Federal Issues Update
Submitted For: LEGISLATION COMMITTEE
Department: County Administrator  
Referral No.: 2015-08  
Referral Name: Federal Issues Update
Presenter: L. DeLaney Contact: L. DeLaney, 925-335-1097

Information
Referral History:
The California State Association of Counties (CSAC) regularly provides an update on Federal issues affecting counties from its lobbyist in Washington, D.C. These updates are routinely provided to the Legislation Committee for their review and direction to staff, as needed.
Referral Update:
Appropriations Process Continues,
Conferees Produce a Concurrent FY16 Budget Resolution

The annual budget and appropriations process was in full swing this week as House appropriators continued to press ahead with consideration of several of the fiscal year 2016 spending bills. On April 29, the lower chamber began debate on an Energy and Water funding package, as well as a Military Construction-Veterans Affairs spending bill. It should be noted that President Obama has threatened to veto both measures and has warned lawmakers of his intent to issue similar threats to any fiscal year 2016 spending bill that adheres to the sequestration-level funding caps dictated by the Budget Control Act (PL 112-25).

Despite its reputation as one of the least controversial spending measures, the $76.6 billion Military Construction legislation (HR 2029) faced substantial resistance on the House floor this week. Bolstered by the Obama administration’s veto threats, Democrats mobilized against the typically bipartisan bill. Further uncertainty ensued as the chamber considered a series of amendments that would have prevented the use of off-budget war funding to evade spending limitations on the Pentagon's regular budget. After rejecting three such amendments, House GOP leaders were able to advance the bill by a vote of 255-163. In the end, nearly 160 Democrats voted against the final measure, which is a notable departure from previous years when there has been near unanimous support for the measure.

With regard to the Energy & Water spending bill, the legislation (HR 2028) would provide a total of $35.4 billion in discretionary funding - $1.2 billion above current levels and $633 million below the administration's budget request - for the Army Corps of Engineers, Department of the Interior, and other agencies. Among other things, HR 2028 includes language that would block the Obama administration’s proposed rule defining "Waters of the United States" (WOTUS). The measure also would restrict the application of the Clean Water Act in certain agricultural areas, including farm ponds and irrigation ditches (see section below for additional discussion on WOTUS).

At the committee level, the House Appropriations Committee recently approved spending levels (known as 302(b) allocations) for all twelve annual appropriations bills. The full committee also advanced its Legislative Branch spending measure.

Additionally, the House Transportation-Housing and Urban Development (T-HUD) Appropriations Subcommittee cleared on April 29 its fiscal year 2016 spending legislation. In total, the bill would provide $55.3 billion in discretionary spending, which is $1.5 billion above the fiscal year 2015 enacted level. However, most of the additional funding will be used to offset a significant decline in receipts from the Federal Housing Administration. Accordingly, the bill would only provide about $25 million more than current spending.

Of interest to California's counties, the T-HUD legislation proposes level funding for highway programs (contingent on Congress reauthorizing MAP-21) and the Community Development Block Grant (CDBG). The bill also provides a slight boost in funding for Homeless Assistance Grants. However, the legislation would only designate $100 million for the popular TIGER grant program, which is $400 million less than current spending.

In related budgetary developments, a bicameral conference committee reached an agreement this week that will pave the way for Congress to clear a final budget resolution for the first time in five years. Not only does the budget resolution (S Con Res 11) prescribe a top-line spending figure for fiscal year 2016, it outlines a framework for balancing the budget by fiscal year 2024, primarily by reducing spending levels.

Democrats, for the most part, are united in their opposition to the budget blueprint largely because of its proposed cuts to domestic spending, as well as its planned repeal of the Affordable Care Act. The House adopted the fiscal year 2016 budget resolution on April 30 on a 226-197 vote, sending it to the Senate where a final vote is expected next week.

Finally, the Senate adopted last week an anti-trafficking bill - the Justice for Victims of Trafficking Act (S 178) - after weeks of partisan debate over an abortion-related policy rider. Senate leaders reached an agreement to water down the controversial language, allowing for passage on a 99-0 vote. If approved by the House and ultimately enacted into law, the legislation would provide competitive grant funding to state and local entities to enhance collaboration and provide services to youth trafficking victims.

MAP-21 Reauthorization

Led by Representative Jeff Denham (R-CA), 34 members of the California congressional delegation sent a letter last week to leaders of the House Transportation & Infrastructure (T&I) Committee regarding the need for Congress to create a dedicated funding stream for locally-owned bridges that are on the Federal-Aid Highway System. CSAC worked closely with Congressman Denham's office on the development of the correspondence and helped secure the support of a number of lawmakers for this important effort.

In California, unlike most other states, over 50 percent of locally-owned bridges are on the Federal-Aid Highway System. While local off-system bridges receive a special funding set-aside under MAP-21, on-system bridges do not have a dedicated funding source. As a result, on-system bridge projects must compete for limited dollars, meaning many are left shortchanged.

Across Capitol Hill, Senator Dianne Feinstein (D-CA) sent last week a similar letter regarding the need for on-system bridge funding to the Senate Committee on Environment and Public Works (EPW). It should be noted that Senator Feinstein directed her staff to develop the correspondence following a meeting with CSAC earlier this year.

Waters of the United States

As reported above, the fiscal year 2016 Energy & Water Development spending legislation includes language that would prohibit the Obama administration from moving forward with its proposed WOTUS rule. In addition to attempting to use the fiscal year 2016 appropriations process to thwart the administration's proposal, congressional Republicans have undertaken other steps to impede the effort.

On Wednesday, April 29, the House Rules Committee approved a resolution (H Res 231) that provides the parameters for the upcoming floor debate over legislation (HR 1732) that would prohibit EPA and the Corps from finalizing or implementing the WOTUS rule. The committee approved the resolution, which will allow for one-hour of debate on HR 1732, on an 8-3 vote.

The underlying WOTUS legislation, which the House Transportation and Infrastructure Committee cleared on April 15 by a 36-22 margin, would require EPA and the Corps to withdraw the proposed rule within 30 days of the legislation's enactment. In addition, the measure would require the agencies to develop a new proposal with advice and recommendations from state and local governments, as well as provide a detailed explanation of how the new proposed rule recognizes, preserves, and protects the primary rights and responsibilities of states to protect water quality and plan/control the development and use of land and water resources in the states.

Debate on HR 1732 is expected to occur the week of May 11

In other developments, Senator John Barrasso (R-WY) introduced on Thursday, April 30 a similar WOTUS proposal. The legislation (S 1140) is cosponsored by Senate Majority Leader Mitch McConnell (R-KY), as well as the chairman of the Environment & Public Works Committee, Senator James Inhofe (R-OK). In addition to Senators Barrasso, McConnell, and Inhofe, nine other senators - five Republicans and four Democrats - have cosponsored the measure.

Specifically, S 1140 would require EPA and the Corps to issue a revised WOTUS rule. Furthermore, the bill prescribes which bodies of waters should and should not be considered waters of the United States and therefore subject to regulation under the Clean Water Act. Under the legislation, the following bodies and types of waters would be excluded from agency regulation: isolated ponds, ditches, agriculture water, storm water, groundwater, floodwater, municipal water supply systems, wastewater management systems, and streams without enough flow to carry pollutants to navigable waters. The legislation also would require the Agencies to undertake certain analyses and consultations pursuant to several existing laws, regulations, and executive orders.

Finally, Senator Jeff Flake (R-AZ), along with Senators John McCain (R-AZ) and Deb Fischer (R-NE), introduced on April 30 a bill that would prohibit implementation of the WOTUS rule until certain scientific reviews have taken place. Specifically, the legislation would require a "Supplemental Scientific Review Panel" and an "Ephemeral and Intermittent Streams Advisory Committee" - which would consist of subject-area experts appointed largely by members of Congress - to undertake scientific analyses and produce certain reports regarding criteria that defines whether a water body or wetland has a significant nexus to a traditional navigable water.
Recommendation(s)/Next Step(s):
ACCEPT the report on Federal Issues and provide direction to staff, as needed.
Attachments
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