LEGISLATIVE ISSUES

In its return from August recess to Capitol Hill, Congress faces reauthorization of highway, airport, and water legislation, plus the crisis in medical malpractice insurance as well as an historic deal offering older Americans a prescription drug benefit. Advancing the 13 spending bills needed to run the federal government in the budget year starting October 1 also comprises a major task confronting the House and Senate.

Leading up to last month's break, the House Water Resources and Environment Subcommittee approved legislation to address our nation's substantial needs for wastewater infrastructure and close the approximately $10 billion annual gap that exists between infrastructure needs and current levels of spending. H.R. 1560, the Water Quality Financing Act Of 2003, was unanimously approved by voice vote. Introducing the legislation that he sponsored with Subcommittee Chairman John J. Duncan, Jr. (R-TN), Transportation and Infrastructure Committee Chairman Don Young (R-AK) noted, “Maintaining municipal water infrastructure has long been a local responsibility. It is a difficult task and many communities around the country have gotten behind.” Added Duncan, “Our nation's quality of life and economic well-being relies on clean water.

“The United States has invested over $250 billion in wastewater infrastructure to provide adequate wastewater treatment so we can keep our waters clean. This investment has provided significant environmental and public health benefits, and contributes over $300 billion of economic benefits to the nation each year. Our country's wastewater infrastructure includes 16,000 publicly owned wastewater treatment plants, 100,000 major pumping stations, 600,000 miles of sanitary sewers, and 200,000 miles of storm sewers. We are challenged with continuing to provide clean water as this existing national wastewater infrastructure is aging, deteriorating, and in need of repair, replacement, and upgrading.

“The Environmental Protection Agency recently reported that without improvements to the nation's wastewater treatment infrastructure we face the very real risk of losing the environmental gains we have achieved over the last three decades. H.R. 1560 authorizes $20 billion in Federal grants over five years to capitalize Clean Water State Revolving Loan Funds. These funds provide low-interest loans to communities for wastewater infrastructure and authorizes extended repayment periods (up to 30 years).”

H.R. 1560 also contains a provision requiring state and municipal governments that borrow federal funds from the Clean Water Act State Revolving Loan Fund (SRF) to use qualifications-based selection (QBS) in hiring engineers to design wastewater projects. The bill was sent to the full House Transportation and Infrastructure Committee for action prior to the recess. Committee leaders hope to bring the bill to the House floor later this year.

Also, Congresswoman Sue Kelly (R-NY) has expressed concerns regarding labor provisions, saying she plans to propose an amendment during full committee mark-up much like one passed in the last session of Congress. The amendment would provide Davis-Bacon Act coverage, mandating payment of prevailing wages on all construction projects, for jobs financed through the State revolving fund.

ENVIRONMENTAL PROTECTION AGENCY

A House Appropriations Subcommittee passed the VA-HUD Appropriations bill, allocating $8 billion to the Environmental Protection Agency for fiscal year 2004. The subcommittee bill provides $375 million above the Bush administration's request and $74 million below FY '03. The Clean Water State Revolving Loan Fund was awarded $1.2 billion, a $350 million increase over the administration's request, but $150 million less than the FY '03 level of $1.35 billion. The Safe Drinking Water State Revolving Loan Fund was subsidized at $850 million, an amount equal to the FY '03 estimated level and the administration's request.

FEDERAL HIGHWAY ADMINISTRATION

Congress figures to be in recess for about five weeks of what is technically the Transportation Equity Act for the 21st Century's final two months. House members reported on FY '04 transportation appropriations, setting a highway obligation limitation of $34.134 billion. Adding to this highway-obligation ceiling, the Appropriations Subcommittee for Treasury, Transportation and Independent Agencies provided another $400 million for Highway Projects. Reportedly $300 million of that amount will be allocated to states on a formula basis and will be eligible for use to continue Amtrak services. The remaining $100 million would be available for distribution specifically to member-selected projects.

Both the House and Senate were unable to move their six-year highway reauthorization bills in July as planned. This month is the new target date for mark-up of the bills by the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee. Time is running out as the current legislation and funding for the states expires on September 30. The Transportation Construction Coalition (TCC) is urging Congress to get bills marked up quickly and to include the necessary funding levels.

A House appropriations subcommittee approved a transportation spending measure that would provide $34.5 billion for the federal highway program in fiscal year 2004, an increase of nearly $3 billion over current levels. Public transportation programs under the measure would be cut by as much as $100 million. In addition, the measure provides flexibility for states to redirect some highway trust fund dollars to passenger rail service. For federal aviation programs, the bill includes $3.5 billion for the Airport Improvement Program, an increase of $122 million over current funding; the $41.5 million allocated for the Essential Air Service Program comprises a 60 percent reduction.

Boosting the rail market, the House Transportation and Infrastructure Committee overwhelmingly approved bipartisan legislation that would provide $60 million for high-speed rail and rail infrastructure projects. The Railroad Infrastructure Development and Expansion Act for the 21st Century (RIDE-21), H.R. 2571, was approved by a voice vote. Sponsors of the legislation included Chairman Young; James Oberstar (D-MN), T&I Committee ranking Democrat; Jack Quinn (R-NY), Chairman, Subcommittee on Railroads; and, Corrine Brown (D-FL), Ranking Democrat, Subcommittee on Railroads. “The RIDE-21 bill represents a two-year, bi-partisan effort by this Committee to address the future of our national high-speed rail system,” noted Chairman Young. “This legislation represents an historic commitment from Congress to improve and expand our nation's rail infrastructure and develop a viable high-speed rail system.”

FEDERAL AVIATION ADMINISTRATION

House and Senate conferees are expected to work quickly to iron out differences between their versions of H.R. 2115, the Century of Aviation Reauthorization Act. Most sources expect the talks to go smoothly; only one major sticking point is anticipated with the White House's opposition to provisions blocking FAA from privatizing the air traffic control system. The House-passed version of the legislation, dubbed “Flight-100,” would authorize $59 billion in aviation infrastructure spending over the next four years. The Senate passed a three-year, $43.5 billion version in July. The bills fund the program at the administration's request, $3.4 billion, in the first year, ramping up by $200 million a year.

ARMY CORPS OF ENGINEERS

The House Subcommittee on Water Resources and Environment approved legislation authorizing Corps projects and studies to enhance river and harbor navigation, reduce flood and storm damage, and promote environmental restoration. Introduced in the House by Chairman Young and Subcommittee Chairman John Duncan, the “Water Resources Development Act of 2003,” H.R. 2557, was unanimously approved by voice vote. “This legislation means jobs and economic security,” said Chairman Young. “In addition, an estimated $706 billion in damages have been prevented through Corps flood damage-reduction projects — most within the past 25 years — representing a six-to-one return on investment.”

The Corps maintains more than 11,000 miles of channels for commercial navigation and operates locks at 230 sites. Half of the locks are over 50 years old. The Corps also maintains 300 deep commercial harbors and 600 shallow coastal and inland harbors. Producing one-fourth of the nation's hydroelectric power capacity are 75 hydropower plants at Corps facilities. To address flood risks, the Corps manages 383 major lakes and reservoirs in addition to 8,500 miles of levees. The Corps estimates that on average its civil works projects prevent $20 billion in flood damages every year. The Water Resources and Development Act of 2003 includes the following provisions:

• Reaffirms the two-year cycle of Water Resources Development Acts to authorize, modify, and improve projects, programs, and policies of the Army Corps of Engineers.
• Authorizes the construction of nine projects in accordance with reports of the Chief of Engineers relating to flood-damage reduction, navigation, hurricane- and storm-damage reduction, and environmental restoration.
• Includes provisions for streamlining and expediting Army Corps of Engineers project delivery and permits.
• Authorizes a number of smaller projects, project modifications, and investigations related to the civil works program of the Corps of Engineers.

Flood Damage Reduction

• Authorizes projects for Morganza to the Gulf of Mexico, La., and the American River Watershed, Calif.
• Authorizes 12 smaller flood-damage reduction projects to protect lives and property.
• Modifies 31 existing flood-damage reduction projects.

Environmental Restoration and Protection

• Authorizes projects for Pine Flat Dam and Reservoir, Calif.; Smith Island, Md.; South Platte River, Denver, Colo.; and, Riverside Oxbow, Fort Worth, Texas.
• Authorizes the development of comprehensive plans for protecting, preserving, and restoring the Coastal Louisiana Ecosystem and the Kaskaskia River Basin.
• Authorizes 10 smaller projects for aquatic ecosystem restoration.
• Modifies 17 existing environmental restoration projects.

Shore Protection

• Reaffirms the federal commitment to shore protection and storm-damage reduction projects.
• Extends the National Shoreline Erosion Control Development and Demonstration Program.
• Modifies eight existing shoreline protection projects.

Watershed Planning

• Increases the opportunities for the Corps to facilitate watershed planning and carry out watershed and river basin assessments.
• Authorizes 25 watershed planning assistance studies and projects.

ECONOMIC DEVELOPMENT ADMINISTRATION

The T&I Committee unanimously approved legislation authorizing EDA for five years with a total of $2.25 billion for programs to assist economically distressed communities. The Economic Development Administration Reauthorization Act of 2003 (H.R. 2535) was introduced by Chairman Young; ranking Democrat James Oberstar; Economic Development, Public Buildings & Emergency Management Subcommittee Chairman Steven LaTourette (R-OH); and, Economic Subcommittee Ranking Democrat Eleanor Holmes Norton (D-DC). “Prior to 1998's reauthorization of the Economic Development Administration, the agency had not been reauthorized for 16 years,” notes Chairman Young. “We cannot allow EDA to exist on year-to-year appropriations again. EDA is a crucial tool to bringing some prosperity to regions of the country that have been economically left behind.”