Conferees Reach Agreement on Water Resources Bill,
Add Highway Program Technical Corrections

U.S. House and Senate conferees announced an agreement this morning on all major outstanding issues related to the long-awaited Water Resources Development Act (WRDA) reauthorization bill. 

The bill authorizes Army Corps of Engineers' water infrastructure, navigation, and environmental projects.  U.S. House Transportation and Infrastructure Committee Chair Jim Oberstar (D-Minn.) announced his intention to circulate a final draft of the conference report to conferees on Monday, file the conference report in the House on Monday evening, then based upon Rules Committee consideration, go to the House Floor on Wednesday.  

U.S. Senate Environment and Public Work Committee Chair Barbara Boxer (D. Calif.) said that Senate Majority Leader Harry Reid (D-Nev.) wants to pass the WRDA conference report in the Senate next week.  Conferees from both sides of the aisle seemed optimistic that the President would not veto the bill, although the White House has yet to comment on the fresh agreement.

According to Chairs Boxer and Oberstar, the WRDA conference report will include a package of technical corrections to the 2005 SAFETEA-LU surface transportation law. 

According to committee staff, the package will include a correction providing a 80-20 match requirement (rather than 50-50 under the current law) for concrete bridge and pavement research projects, although a final written draft of the agreement was not available at press time. NACA members PCA and ACPA worked closely with key lawmakers to change the match ratio to 80-20.

Oberstar also indicated that the draft conference report would authorize 940 water resources projects and studies totaling about $21 billion. 

The conference report also requires independent outside peer review of projects costing $45 million, splitting the difference between the House and Senate proposals.

Contact David Hubbard.

The funding is in line with the authorized levels in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users.  The measure provides $40.216 billion for highways, including $631 million in revenue-aligned budged authority, which is calculated annually to adjust for shortfalls in Highway Trust Fund revenue estimates.

The Airport Improvement Program (AIP) was a funded at $3.600 billion.  The spending bill passed by a vote of 268-153, short of the number of votes needed to overcome an anticipated Presidential veto. The cost of the bill is more than $4 billion over his request.

The Senate Appropriations Committee approved its version of the spending measure on July 12.   It provides identical funding levels as the House-passed bill for the federal-aid highway program.  Under the Senate bill, the AIP is frozen at the FY 2007 level of $3.516 billion.  No timetable has been announced for Senate Floor consideration.

Contact David Hubbard or Jerry Voigt.

The House Financial Services Committee approved legislation yesterday to revamp the federal government's flood insurance program.

The move came in spite of Republican opposition to a provision that would expand the system to allow for wind damage coverage.

By a 38-29 margin, the panel approved H.R. 3121, a measure by Housing Subcommittee Chair Maxine Waters (D-Calif.), to overhaul the National Flood Insurance Program (NFIP), which has amassed a debt load of $18 billion because of claims from hurricanes Katrina and Rita.

The committee adopted a National Ready Mixed Concrete Association (NRMCA) proposed amendment offered by Rep. Randy Neugebauer (R-Texas) to direct the Federal Emergency Management Agency (FEMA) to study whether building codes can be integrated into the NFIP's land-use management criteria. The amendment also directs FEMA to consider the effectiveness of codes in allowing for innovations in flood-resistant construction and whether lower premium rates could be offered for structures that are built to stronger than code standards.

Financial Services Committee Chair Barney Frank (D-Mass.) expressed strong support for the building code amendment, stating that he hoped that it would lead to a requirement whereby communities with substandard codes would have to adopt the NFIP standards or risk losing their eligibility to participate in the program.

The flood reform bill is expected to be voted on by the full House in September or early October.

Contact Robert Sullivan.

The Environmental and Public Works Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection on Tuesday held a hearing called, "Economic and International Issues in Global Warming Policy."

Subcommittee Chair Joseph Lieberman (I-Ct.), Ranking Member John Warner (R-Va.) and other members in attendance mostly focused on two issues concerning global warming policy:  the economic cost and impacts of such legislation, and the effects on global competitiveness. 

This hearing is a precursor for a climate change bill in the works sponsored by Senators Warner and Lieberman.  Senator Warner announced in his opening remarks that they would release a draft study before the August recess for businesses, members of Congress, environmental groups, and other interested parties to review and comment upon before introducing their bill in subcommittee.

Senator Warner, along with Senators Mary Landrieu (D-La.), Blanche Lincoln (D-Ark.), and Lindsay Graham (R-S.C.) will introduce legislation that tries to limit the cost of mandating emissions reductions under a cap-and-trade program through allowing companies to borrow emission permits and pay them back in the future with no interest, and also allow them to purchase more offsets in order to meet these requirements.

The bill would create a Carbon Market Efficiency Board that would monitor the carbon emissions market, and when necessary, increase emissions allowances.  This seven member board would be appointed by the President.

Under this legislation, there would be no need for a safety valve, which U.S. Senate Environment and Public Work Committee Chair Barbara Boxer (D. Calif.), and Senator Bernard Sanders (I-Vt.) both declared in yesterday's hearing they would not support.

AFL-CIO Executive Director of the Industrial Union Council Robert Baugh testified in support of a safety valve and discussed the AFL-CIO's endorsement of the Bingaman-Specter legislation that would limit the cost of emitting carbon emissions to $12 per ton in the first year it is enacted.

Contact David Hubbard.

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