APPROPRIATIONS UPDATE

Senate appropriators continue work on FY 09 spending measures despite an apparent
stalemate across the Capitol. Although the Senate is moving forward on the 12
spending measures, it appears that the Defense bill is the only bill likely to see floor
time before the 110th Congress adjourns on September 26. The remaining spending
measures will likely be addressed once a new administration takes office in January.

Next week the Senate has scheduled full committee mark ups of the Interior-
Environment, Defense, and Legislative Branch spending bills.

HOUSE BILLS ADDRESS WATER SUPPLY SHORTAGES THROUGH
WATER USE EFFICIENCY AND CONSERVATION

On July 16, the House Committee on Science and Technology passed two bills (H.R.
3957, H.R. 2339) both which address growing concerns over water supplies across
the country. H.R. 3957, the Water Use Efficiency and Conservation Research Act,
institutes a research and development program to promote water use efficiency and
conservation within the Environmental Protection Agency’s (EPA) Office of Research
and Development. The research and development program would focus on water use
efficiency and conservation for the collection, storage, treatment, and reuse of
rainwater and stormwaters. EPA would provide a publicly accessible clearing-house
to share their findings.

The committee also passed H.R. 2339, the Produced Water Utilization Act, which
establishes a program to research, develop, and demonstrate the beneficial reuse of
water produced in connection with oil and gas extraction. The bill seeks to create
innovative, environmentally-friendly treatment technologies to enable the use of
produced water that is generated at a rate of approximately 2.3. billion gallons of water
per day. Currently the water is not clean enough for use, and is often re-injected into
the ground.

In closing the mark-up, Committee Chair Bart Gordon (D-TN) stated, “in an effort to
protect the country from an impending water scarcity crisis, the Committee has begun
to search out ways for the federal government to spur new technological innovations in


HOUSE DEMOCRATS SHOW INTEREST IN SECOND STIMULUS BILL

House Democratic leaders this week indicated plans to draft a second economic
stimulus package to be considered before Congress adjourns in late September. The
White House and Republican leaders have suggested a second stimulus package is
premature, preferring to wait longer for the first stimulus package (P.L. 110-185). The
first economic stimulus package became law on February 13 and rebate checks were
delivered this summer. House Majority Leader Steny Hoyer (D-MD) expressed
interest in working with the President as was the case with the first stimulus package.
This week, Hoyer and Speaker Nancy Pelosi (D-CA) met with private sector
economists and academics, who encouraged additional action. Hoyer indicated the
package was likely to include more infrastructure funding, home energy assistance for
low-income Americans, and more money for food stamps and state Medicaid
programs. Pelosi left open the possibility of a second round of rebate checks.

The Senate is also discussing the prospect of moving a second stimulus or
supplemental bill of their own. Senate Majority Leader Harry Reid (D-NV) indicated
any supplemental is likely to wait until Congress returns from its August recess.
Senate appropriators are moving forward with a new supplemental spending bill that
will focus on funding domestic programs that did not make it into the recently enacted
war supplemental spending (PL 110-252). Senate Committee on Appropriations
Chairman Robert Byrd (D-WV) scheduled a July 22 markup and said the bill will
include funding for infrastructure projects, along with relief for Western wildfires and
continuing aid for Gulf Coast hurricane recovery.

CONGRESSIONAL RESPONDS TO WESTERN FOREST FIRES

On July 10, the House passed the H.R. 5541, the Federal Land Assistance,
Management and Enhancement Act (FLAME Act), which would provide the U.S.
Forest Service a dedicated fund for fighting catastrophic fires.

Last year, the U.S. Forest Service spent $741 million more than budgeted and the
Department of Interior spent $249 million more than budgeted for emergency wildfire
suppression. The Congressional Budget Office estimates that enacting the FLAME
Act would “cost $100 million over the 2009-2013 period, assuming appropriation of the
necessary amounts.”

An identical bill (S. 3256) has been introduced in the Senate by Senator Barbara Boxer
(D-CA) and is awaiting action before the Committee on Energy and Natural
Resources. Senator Boxer stated, "By establishing a dedicated federal fund, we will
ensure that the Forest Service isn’t forced to drain other important accounts to pay for
catastrophic wildfires. I hope the Senate will act quickly on this legislation– even as we
work today to extinguish these fires, we must prepare for more tough fights in the
future."

The FLAME Act contains the following provisions:

Cohesive Wildland Fire Management Strategy: requires the Secretary of the Interior
and the Secretary of Agriculture to submit a cohesive wildland fire management
strategy to Congress. The strategy is required to include numerous fire management
elements, including a system for ensuring that the highest priority fuels reduction
projects are being funded first and a system for identifying the most cost effective
means for allocating fire management budget resources. The bill specifically requires
the Forest Service to notify owners of adjacent private land in writing prior to the date
that a prescribed fire is used on a National Forest System.

Fire-Ready Communities: requires the Secretaries to develop regional maps of
communities most at risk for wildfires and in need of hazardous fuel treatment and
maintenance. The Secretaries are then authorized to provide cost-share grants to
communities located in the priority areas for education programs about wildland fire
protection practices, firefighter training programs, equipment acquisition, and
implementation of a community wildfire protection plan.

Wildfire Cost Containment: requires the Secretary of the Interior and the Secretary of
Agriculture to conduct an independent review of each wildfire incident that caused by
their respective agencies to incur expenses of more than $10 million and report their
findings to Congress.

DEMOCRATS PLEDGE TO MOVE DEFENSE APPROPRIATIONS BILL
THIS YEAR

House and Senate Democratic leaders said this week that they plan on passing the FY
09 defense bill before the current fiscal year ends on September 30. Senate Majority
Leader Harry Reid (D-NV) and House Speaker Nancy Pelosi (D-CA) agree that the bill
should be completed, with Pelosi noting, “that is our responsibility, and we will do that.”
The House measure is likely to give more money to soldiers being held beyond their
commitments, press the Pentagon to resolve the dispute over a air tanker contract, and
try to alter the President’s war policies, especially regarding Guantanimo Bay
detainees. The bill could serve as a vehicle for additional spending provisions or a
continuing resolution to keep other government agencies funded into early next year.
Using the Defense bill as a vehicle for a continuing resolution may prove difficult for
Congressional Republicans and the White House to oppose.

NEXT WEEK’S AGENDA

Next week, the Senate will be focusing on proposals to ease the nation’s energy
concerns and FY 09 spending bills. Time is running out for the Senate to address a
limited list of must-do legislation, as Democratic leaders have indicated they do not
plan to be in session the week of August 4. The first vote is expected to be on
Tuesday on a procedural motion regarding a bill (S. 3268) that would place more
regulations on energy futures trading in an effort to crack down on speculation. GOP
leaders have repeatedly called for a vote to end the current moratorium barring states
from drilling for oil in the out continental shelf, and it remains a possibility this could
halt pending legislation. Senate Majority Whip Richard Durbin (D-IL) said the Senate
could consider a bill (S. 3186) that would increase funding for the Low-Income Home
Energy Assistance Program.

In the House, lawmakers are expected to consider an overhaul of housing policy, a
global AIDS bill and a bridge-repair measure next week. H.R. 3221 would overhaul
the Federal Housing Administration, create a new regulator for mortgage giants Fannie
Mae and Freddie Mac, and create a new government program to help borrowers
facing foreclosure. Floor consideration is also expected on a bill (H.R. 3999) to
authorize $1 billion for bridge reconstruction and require the Federal Highway
Administration to immediately update national bridge inspection standards and
improve training for highway bridge inspectors.

FUTURE CONGRESSIONAL HEARINGS

Senate

Date: July 22, Time: TBA
Committee on Appropriations
Hearing: Second Supplemental, Full-Committee Mark-up

Date: July 22, Time: 10:00 a.m.
Committee on Environment and Public Works
Hearing: Global Warming and Its Implications

Date: July 24, Time: TBA
Committee on Appropriations
Hearing: Interior-Environment, Full-Committee Mark-up

Date: July 30, Time: 10:00 a.m.
Committee on Judiciary
Hearing: White House Interference With EPA

House

Date: July 21, Time: 10:00 a.m.
Committee on Natural Resources
Field Hearing: Federal Response to California Drought

Date: July 23, Time: 10:00 a.m.
Committee on Science and Technology
Field Hearing: Federal Water Research

Date: July 24, Time: 10:00 a.m.
Committee on Energy and Commerce
Hearing: Carbon Sequestration

Date: July 30, Time: 2:00 p.m.
Committee on Transportation and Infrastructure
Hearing: Water Protection and Restoration