Update on Transportation Authorization as Holiday Recess Approaches

DOT Announces New Round of TIGER Grants

WIA Reauthorization Bills Emerge in the House and Senate 

Second Chance Act Reauthorization Introduced in Senate

EPA, Army Corps Extend Deadline for Waters of U.S. Comments

NLC Submits Comments on EPA Regulatory Review Plan

IRS Issues Interim Guidance on Reporting of Employee Health Insurance Costs

Comments Requested on Employer Health Coverage Shared Responsibility

NLC Policy Amendments and Resolutions Due August 12

As Congress heads into the July 4th recess, the fate of transportation authorization remains unknown. House and Senate transportation leaders are working behind the scenes to reach agreement on legislation, gain approval from Congressional leaders for time to consider their bills and find the funds necessary for a long term national transportation program.

In the House, Transportation and Infrastructure Committee Chairman Rep. John Mica (R-FL) is expected to use the Ryan budget plan, with its 30 percent cut in funding for transportation programs, as a guide in developing a six-year transportation program. Rep. Mica has said he will introduce his bill following the recess and hold a markup later in the month.

It is believed that Mica's plan will call for consolidating the current number of transportation programs into a smaller pool with more state flexibility in making transportation spending decisions. Streamlining of rules and regulations governing transportation programs also will be included in order to speed up projects and cut costs. With the House in session for just two weeks in July and then out for all of August, there will be only one month to pass a new bill before the current program expires on September 30.

In the Senate, leaders from the Environment and Public Works Committee also plan to release a bill-likely a two-year authorization-shortly. Committee Chair Sen. Barbara Boxer (D-CA) has been working with bipartisan leadership on her Committee and the Senate Finance Committee to find funding for a bill at current spending levels. Indications are that the bill will be introduced in early July with a potential hearing before the Senate Environment and Public Works Committee mid-month.

NLC will continue to monitor any progress being made; however, with so many must-pass bills on the Congressional agenda and so little time, it is unlikely that Congress will be able to reach agreement before the current transportation bill expires in September.

DOT Announces New Round of TIGER Grants
Leslie Wollack, wollack@nlc.org, 202.626.3029

On Thursday, U.S. Transportation Secretary Ray LaHood announced that $527 million will soon be available for a third round of the Transportation Investment Generating Economic Recovery (TIGER) competitive grant program. A Notice of Funding Availability was released in today's Federal Register; the deadline for states and local governments, as well as other partnerships and groups, to submit grant applications is October 3, 2011 at 5:00 p.m.

The previous two rounds of the TIGER grant program provided $2.1 billion to 126 transportation projects in all 50 states and the District of Columbia. This time around, projects will be selected based on their ability to contribute to the long-term economic competitiveness of the nation, improve the condition of existing transportation facilities and systems, improve energy efficiency and reducing greenhouse gas emissions, improve the safety of U.S. transportation facilities, and improve the quality of living and working environments of communities through increased transportation choices and connections. DOT will also focus on projects that are expected to quickly create and preserve jobs and spur rapid increases in economic activity.

For more information about the new round of TIGER funding, please visit http://www.dot.gov/tiger.

Within the past two weeks, efforts to reauthorize the Workforce Investment Act (WIA) have gained momentum in both chambers of Congress. In the Senate, the Committee on Health, Education, Labor and Pensions (HELP) released several discussion drafts of its reauthorization bill and is expected to review and take action on July 13. Last Thursday, Representative Howard McKeon (R-CA) introduced a reauthorization bill in the House, the Workforce Investment Improvement Act of 2011 (H.R. 2295).

While this bill and the Senate discussion drafts differ substantially, both demonstrate the importance that Congress is placing on responding to the lack of job growth in recent months. Upon introducing his bill, Rep. McKeon said that WIA reauthorization is fundamental "to aiding in job creation and retention as it addresses the needs of the employer and the employee by seeking to adequately prepare job-seekers with the skills they need to succeed in an ever-changing job market."

NLC is in the process of formally commenting on both bills. Though the Senate is moving forward with markup and consideration, no date has yet been set by the House Committee on Education and the Workforce for review of H.R. 2295.

Second Chance Act Reauthorization Introduced in Senate
Mitchel Herckis, herckis@nlc.org, 202.626.3124

Last week, Senators Patrick Leahy (D-VT) and Rob Portman (R-OH) introduced a bill to reauthorize the Second Chance Act (S. 1231), legislation that provides grants and resources to reintegrate prisoners back into communities and reduce the rate of repeat offenses. Since the law was enacted in 2007, millions of dollars have been provided to local governments to design and implement comprehensive reentry programs.

S.1231 includes several changes to the existing grant programs. For instance, recipients have always been required to match the federal grant with local funds; under S. 1231 the amount of "in-kind" contributions cities may use as matching funds will increase from 50 to 75 percent. While the bill lowers the maximum level at which the programs may be funded by Congress over the next few years, it would remain at or above the amount Congress historically funded the program. S. 1231 also consolidates some programs that had similar uses, such as grants for establishing alternatives to incarceration. Finally, the bill would require periodic audits of grantees to ensure the grant funding is being spent for the intended purposes, as the current program has no measurement indicators or means of tracking use.

NLC supports efforts to reauthorize The Second Chance Act and is working with the Senate to ensure passage of a strong bill.

EPA, Army Corps Extend Deadline for Waters of U.S. Comments
Carolyn Berndt, berndt@nlc.org, 202.626.3101

On Monday, the EPA and the U.S. Army Corps of Engineers (Corps) announced a 30-day extension for public comments on the draft guidance on Identifying Waters Protected by the Clean Water Act, which seeks to the define "waters of the U.S." and determine whether a waterway, water body, or wetland is protected under the Clean Water Act (CWA). EPA and the Corps will now take comments until July 31.

It is important that cities and towns carefully review the guidance because the definition of "waters of the U.S." will apply to all programs under the CWA, such as Total Maximum Daily Load (TMDL) and water quality standards programs; the National Pollutant Discharge Elimination System (NPDES) permit program; and the permit program for discharges of dredged or fill material. The document acknowledges the impact that the guidance may have on state and local governments, including significantly increasing the number of water bodies found subject to CWA jurisdiction.

NLC is currently reviewing the guidance and will likely submit comments; please inform NLC if your city also files comments.

NLC Submits Comments on EPA Regulatory Review Plan
Carolyn Berndt, berndt@nlc.org, 202.626.3101 

At the beginning of the year, President Obama issued Executive Order 13563: Improving Regulation and Regulatory Review, which called for federal agencies to draft plans to determine whether their regulations should be streamlined, changed, or repealed to make each agency's regulatory program more efficient, effective and accountable. Over the last several weeks, the agencies have begun releasing their preliminary review plans and inviting public comment on them. NLC staff is reviewing the plans as they are released and where appropriate submitting comments underscoring opportunities for the agencies to reduce the burden unnecessary regulations have on local governments and ultimately taxpayers.

Earlier this week, NLC submitted its first set of comments to the U.S. Environmental Protection Agency (EPA) in response to the agency's plan, titled "Improving Regulations: A Preliminary Plan for Periodic Retrospective Review of Existing Regulations." In addition to submitting general comments regarding EPA's regulatory review procedure, NLC offers specific recommendations on several of the priority regulatory reviews that EPA plans to consider this year and beyond, including collaboration with the U.S. Department of Agriculture, the Superfund National Priorities List, the cost analysis of regulations, and consumer confidence reports for drinking water.

As additional comments to agency plans are submitted, NLC will report on them in future editions of the Federal Relations Update and on our website, www.nlc.org.

The Internal Revenue Service (IRS) recently issued an interim final guidance directing employers on how to report the aggregate cost of their group health insurance coverage to employees on tax year 2012 W-2 forms. The guidance goes into effect immediately and is not likely to be revised until after the 2012 W-2s are distributed.

The guidance clearly states that all reporting is for informational purposes only and does not change the traditional tax-exempt status of employer-paid health insurance. It also states that the information is meant to help employees better understand the total cost of their group health insurance, including the amounts that both workers and employers contribute.

Comments Requested on Employer Health Coverage Shared Responsibility
Neil Bomberg, bomberg@nlc.org, 202.626.3042 

Last month, the IRS and the U.S. Departments of Health and Human Services (HHS) and Labor (DOL) issued a request for comments in order to initiate a dialogue with public and private sector employers about how to define and count seasonal, temporary, part-time, and full-time employees. Such a definition will help to determine whether an employer is considered an "applicable large employer" under the Patient Protection and Affordable Care Act (ACA), and therefore subject to the rules pertaining to employer-provided health care.

The ACA mandates that employers with more than 50 full-time equivalent workers provide health care coverage consistent with ACA standards or be subject to penalties. As a result, the definition of a seasonal employee is important, as they are not typically counted when determining whether an employer is an "applicable large employer." The agencies' final determination could have the unintended consequence of forcing cities who believed they were exempt from the ACA's mandate to instead be subject to it.

Earlier this month, NLC and NLC-RISC submitted joint comments raising this concern.

NLC invites all member cities to submit National Municipal Policy (NMP) amendments and resolutions for consideration as part of NLC's annual policy development process. The deadline for submissions is Friday, August 12.

The NMP is a permanent statement of NLC's position on national matters divided into seven policy chapters. Each policy and advocacy committee considers the submitted policy amendments to develop and revise policies within its corresponding chapter.

Resolutions address timely issues or specific pieces of legislation and are annual statements of position. Unless action is taken to renew a resolution or incorporate it into the NMP, each resolution expires at the Congress of Cities following their adoption.

All proposals submitted by the deadline will be forwarded to the appropriate Policy and Advocacy Steering Committees for review. Upon further action, voting delegates will consider the committees' work at the Annual Business Meeting during NLC's Congress of Cities in Phoenix, Arizona, in November.

Submit policy amendments and resolutions in writing to Stephanie Spirer via email: (spirer@nlc.org), fax: 202.626.3043 or mail: National League of Cities, 1301 Pennsylvania Avenue, N.W., Suite 550, Washington, D.C. 20004. Stephanie may also be reached via phone at 202.626.3030 for those seeking a copy of the submission guidelines.