SENATE APPROPRIATORS HIT HALFWAY MARK.  After a week of quick and often unexpected action the Senate Appropriations Committee completed action on four appropriation bill on June 29^th.  Included in this action were both the FY 2007 Energy and Water Development Appropriations Act (H.R. 5427) & the FY 2007 Department of the Interior, Environment, and Related Agencies Appropriations Act (H.R. 5386).  Tight budget allocations guided much of the Committee’s choices where level funding took on the air of victory for many programs   This sentiment was captured by Sen. Conrad Burns (Montana), chairman of the Interior and Environment Appropriations Subcommittee, at the full committee markup,  "For most of the programs, the needs are almost limitless, but we had to live with tough choices."  Unfortunately for states, many of the tough choices included cuts to key state-federal partnerships shifting the cost of maintaining these programs to state government. 

Two key examples are cuts to the low-interest Clean Water State Revolving Fund (SRF) and the under funding of the Diesel Emissions Reduction Act (DERA), authorized in last year’s Energy Policy Act of 2005.  Senate appropriators sided with the White House and U.S. House of Representatives when it recommended a $688 million FY 2007 funding level for the SRF.  This action on H.R. 5386 means that federal policymakers will agree to cut this program virtually in half from the funding level it had three years ago—despite numerous consensus reports on infrastructure needs and despite the unfunded federal mandate and cost shift nature of these reductions. DERA funds are targeted at diesel retrofit programs for school buses, construction equipment and other on and off-road engines.  At $20 million the Senate approved legislation is the lowest total yet for the program as the compared to the House's $28 million funding level and the President’s $50 million request.

Superfund, the Drinking Water State Revolving Fund and state grants from the Land and Water Conservation Fund would stay at or near FY 2006 levels per the Senate committee’s action. Floor consideration is expected as early as the week of  July 17 but may be delayed due to previously scheduled legislative business.

CLEAN WATER ACT…HUH? – While determining the power of the federal government to regulate wetlands, the Supreme Court was unable to answer whether wetlands adjoining small tributaries that join larger bodies of water are protected under the Clean Water Act.  At a House briefing on June 29, Congress was urged to hold hearings and move forward with last year’s introduced Clean Water Authority Restoration Act, HR 1356 and S 912, that embraces the Army Corps definition of U.S. waters, thus clarifying questions of authority.   

EXTENDING THE NORTH AMERICAN WETLANDS CONSERVATION ACT – The House Fisheries and Oceans Subcommittee heard from environmental, fishing, and hunting groups, as well as federal and state natural resources officials, on June 29 regarding the extension of the North American Wetlands Conservation Act (NAWCA) through fiscal year 2011 at the current funding level of $75 million.  NAWCA issues grants to protect, enhance, restore and manage wetlands and other habitats for migratory birds, fish, and wildlife, and is funded by the government with matching funds provided by conservation groups and private businesses.  Twenty-two million acres of wetlands have been restored since NAWCA’s inception in 1989.  

AND YOU THOUGHT THE HOUSE WAS DONE WITH BOUTIQUE FUELS – On June 28, House Majority Whip and Missouri Representative Roy Blunt introduced the Boutique Fuels Reduction Act of 2006.  This legislation would reduce the current number of fuel blends, disallow for the promotion of specialty fuels, and widen EPA’s waiver authority for unexpected fuel problems.  House Speaker and Illinois Representative Dennis Hastert has slated Blunt’s bill and another dealing with automobile fuel economy for action after the July 4^th recess.