NLC Tells Super Committee Not To Harm Local Communities

Senate Says No to American Jobs Act Bill

Appropriations Process Continues to Move Slowly

NLC Supports Clean Water SRF Reauthorization Bill

EPA Consults with Local, State Governments on Steam Electric Utility Rulemaking

The 12-member Joint Select Committee on Deficit Reduction, which was created as part of the Budget Control Act (the deal to raise the debt ceiling), is tasked with finding $1.5 trillion in savings in the federal budget by November 23. If the Committee fails to come up with recommendations for the savings or if Congress fails to adopt those recommendations by December 23, $1.2 trillion in across the board cuts will be imposed on discretionary defense and non-defense spending in fiscal year 2013. To view a list of Committee members, click here.

In a letter sent to the Committee, NLC President James Mitchell urged the Committee to use a balanced approach and to consider the full range of options-discretionary spending, revenue enhancements, and entitlement reform-to achieve its goal. President Mitchell also urged the Committee to maintain the tax exemption on municipal bonds and warned Committee members to resist efforts to achieve its goal by transferring unfunded mandates to cities and towns. To view President Mitchell's letter, click here.

Senate Says No to American Jobs Act Bill
Carolyn Coleman, coleman@nlc.org, 202.626.3023

Last week, the Senate blocked a motion to advance consideration of the American Jobs Act (S. 1660). All of the Senate Republicans and four Democrats voted to defeat the measure. The $447 billion jobs bill, which NLC supported, called for increased investment in transportation infrastructure, workforce development, school construction, and education and public safety programs to help create jobs.

Following the bill's defeat as a package, Senate Democratic leaders and President Obama pledged to advance the proposals in a piece meal fashion. And, in a speech on the Senate floor earlier today, Senate Majority Leader Reid announced that Democrats will pursue the President's plan to commit $35 billion to send to state and local governments to help retain and hire teachers and first responders. NLC supported a version of this legislation that was introduced in 2010 and will consider doing the same once a copy of the new legislation is made available.

With a month to go before the current continuing resolution on spending runs out, House and Senate leaders have yet to agree on the process for wrapping up fiscal year 2012 appropriations. In the meantime, efforts continue on individual spending measures in both chambers with no clear end game in sight.

In the last two weeks, members in both chambers have considered funding for programs that fall under the Departments of Labor and Health and Human Services (L-HHS). While their actions reflect differences of opinion, there are some agreements.

Consistent with the Budget Control Act, both chambers are calling for a cut in overall spending for these programs, although individual programs could see increases. Both the House and the Senate call for increases in funding for Title I of the Elementary and Secondary Education Act. The Senate calls for $15.7 billion, while the House calls for $15.5 billion. The fiscal year 2011 amount was $14.5 billion.

Both chambers are calling for decreases in spending on the Individuals with Disabilities Education Act program with the Senate calling for $12.6 billion in funding, and the House calling for $12.7 billion in funding; last year, the program was funded at $12.8 billion. Both chambers also support increases in funding for the Head Start program with the Senate at $7.9 billion and the House at $8.1 billion; last year, the program was funded at $7.6 billion.

The chambers disagree on funding for the Workforce Investment Act program and the Low Income Home Energy Assistance Program. The Senate would fund WIA at $2.7 billion, only $200 billion less than last year; the House would cut funding for the program to $950 million, by nearly 70 percent. The Senate would fund LIHEAP at $3.6 billion, which is over 30 percent below last year's number (down $1.1 billion from last year); $1.3 billion for the House.

In addition, the House bill includes policy changes that would prohibit the federal government from funding provisions of the health care reform law until all legal challenges have been concluded and rescinds more than $8.6 billion in funding for implementation of the law.

NLC Supports Clean Water SRF Reauthorization Bill
Carolyn Berndt, berndt@nlc.org, 202.626.3101 

Last week, Representatives Tim Bishop (D-NY), Nick Rahall (D-WV), Steve LaTourette (R-OH) and Tom Petri (R-WI) introduced the Water Quality Protection and Job Creation Act of 2011 (H.R. 3145), which would provide $13.8 billion over five years through the State Revolving Fund (SRF) and other efforts to improve water quality.

In a letter to the bill sponsors, NLC voiced its support for key aspects of the bill, including reauthorization of the Clean Water SRF and the establishment of a grant program through which municipalities may carry out projects to control combined sewer overflows and sanitary sewer overflows. Highlighting the growing gap between the current expenditures and anticipated needs to enhance and maintain critical water infrastructure, NLC calls for a reliable, long-term source of substantial capital for municipal water infrastructure systems.

The bill authorizes two options for long-term, alternative financing mechanisms to provide supplementary funds for clean water infrastructure: establishing a clean water trust fund and authorizing the use of direct federal loans and loan guarantees, modeled after financing mechanisms for the construction of transportation projects through the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, which NLC supports. NLC does not, however, have specific policy on the proposals in this bill.

To read the NLC letter, click here. For more information on the bill, click here.

EPA Consults with Local, State Governments on Steam Electric Utility Rulemaking
Carolyn Berndt, berndt@nlc.org, 202.626.3101 

Last week, the U.S. Environmental Protection Agency (EPA), as required by the Unfunded Mandates Reform Act and Executive Order 13132: Federalism, held a consultation meeting for local and state government groups on an upcoming rulemaking affecting steam electric power generating units.

The rulemaking aims to revise the current effluent limitations guidelines for steam electric power generating units, which include those that use coal, oil, gas, or nuclear fuel. The scope of the rulemaking will cover direct discharges under the National Pollutant Discharge Elimination System (NPDES) program and indirect discharges under the national pretreatment program. EPA estimates that there are 182 steam electric plants that are owned in whole or in part by 158 states, local governments, and cooperatives. Local governments will be affected by this rulemaking both as plant owners and as NPDES program regulators.

EPA aims to propose a regulation in July 2012 and to finalize it in January 2014, with an implementation date of up to five years through the NPDES permit cycle. EPA will accept comments on the consultation material through December 9. NLC is reviewing the material and may submit comments. If any city and town files comments, please be sure to share them with NLC.

To view the EPA Federalism consultation presentation, click here. For additional information on the rulemaking, click here.