House Appropriations Committee Cuts SRF Appropriations for FY 2012 On July 12, the House Appropriations Committee approved its Interior & Environment Appropriations legislation, which includes dollar allocations for fiscal 2012. Following on April’s fiscal 2011 budget agreement, the Environmental Protection Agency’s State Revolving Fund programs were again a major target. The whole agency saw a $1.53 billion, or 18 percent cut, from current spending and much of that would come at the expense of clean water programs. The bill would fund the Clean Water SRF at $689 million, down from $1.5 billion in FY2011 and $2.1 billion in FY10. The Drinking Water SRF would be funded at $829 million, down from $965 million in FY2011 and $1.4 billion in FY2010. Total cuts to the SRF programs would be $967 million from FY2011 numbers, bringing the SRFs back to FY2008 levels. Now that the full Committee has approved the legislation, it moves to the full House for consideration and amendments.

On Friday, July 8, the House Subcommittee on Water Resources and Environment held a hearing on H.R. 104, the “Realize America’s Maritime Promise (RAMP)” Act, which was introduced by Rep. Charles Boustany (R-LA) to require that all revenue in the Harbor Maintenance Trust Fund (HMTF) is invested in U.S. harbor construction and maintenance. 

AGC Led Groups Send Letter to Congressional Leaders As the August 2 deadline to lift our nation’s debt limit or risk defaulting on our obligations approaches, President Obama and congressional leaders continue to meet. However, they appear to be a long way from reaching agreement.  President Obama remains committed to budget reforms that would cut nearly $4 trillion over 10 years while also raising revenue.  Republicans are now suggesting that a short-term debt deal might be necessary, given how far apart the two sides are on a revenue increase, which Republicans view as tax increases. 

AGC members in Tennessee met with Senator Bob Corker (R-TN) on July 11, to present an AGC PAC contribution and discuss the construction industry’s legislative priorities.  Senator Corker, a former construction company owner, remains a close industry ally in the Senate, who continues to provide the contractor perspective on legislation before the chamber.

On July 13, the House passed H.R. 2018, the Clean Water Cooperative Federalism Act by a vote of 239-184.  The bill will limit the Environmental Protection Agency’s (EPA) authority over states on Clean Water Act decisions.  Specifically, it would prevent the EPA from overruling state water quality standards for pollutants, and limit their ability to veto dredge and gill permits issued by the Army Corps of Engineers.  The bill also gives states more flexibility to administer these permitting programs. In addition, Representative Shelley Moore Capito (R-W.V.) added an amendment, which would require the EPA to analyze the impact of certain covered actions on employment levels and economic activity, and require public notice and a hearing in those instances where a covered action has more than a de minimis impact on employment or economic activity in any given state.

In a news conference on Wednesday, July 6, Senate Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) said that her committee would seek to pass a two-year surface transportation reauthorization bill; instead of a six-year bill that she had previously said was her goal.

The White House and congressional leaders continue to meet behind closed doors to negotiate the debt limit and deficit reductions.  Republicans and Democrats have not reached an agreement on a number of issues; however, both sides believed the meeting held on July 7, was a positive starting point. 

Momentum continues to build in Congress to repeal the 3 percent withholding tax, and AGC members and the construction industry have been at the forefront of the repeal campaign.

House Transportation and Infrastructure (T&I) Committee Chairman John Mica (R-Fla.) was joined by his subcommittee chairs and a group of other leading Republican committee members at a briefing July 7 to present the outline for a surface transportation reauthorization proposal.

Senate Foregoing July 4 Recess With the breakdown of Vice President Biden’s bipartisan deficit reduction negotiations over Democrats’ insistence on tax increases and Republicans’ refusal to accept any increase, the Senate is planning to stay in Washington and forego their July 4 recess in order to focus on deficit reduction negotiations, according to Senate Majority Leader Harry Reid (D-N.V.).