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June 30, 2009

House Approves American Clean Energy and Security Act of 2009
LEGISLATION INCLUDES CRITICAL TRANSPORTATION PROVISIONS   


On June 26, the House voted 219-212 to approve the American Clean Energy and Security Act of 2009 (HR 2454).   Introduced by Reps. Henry Waxman (D-CA) and Edward Markey (D-MA), the bill is a comprehensive cap-and-trade program aimed at reducing greenhouse gas emissions. Due to its far-reaching implications, several Committees had jurisdiction over the bill. Negotiations within the House Agriculture Committee delayed the legislation through much of June, but compromises worked out with rural Democrats on the Committee enabled the bill to pass on the House floor. Not quite a party-line vote, forty-four Democrats voted against the bill and 8 Republicans voted for it.

The legislation included some key provisions that will help reduce greenhouse gas emissions from the transportation sector, which were advocated by Smart Growth America and its partners. These provisions, included in the transportation efficiency section of the bill, amend the federal transportation planning process and require states and metropolitan planning organizations to develop goals and strategies to reduce emissions from the transportation sector. The legislation also for the first time includes a process for developing a national transportation GHG reduction goal. The bill allows states to use up to 10 percent of funding they will receive through the State Energy & Environment Development (SEED) accounts for public transportation, van pooling, bicycle and pedestrian projects, which represents a total of 1 percent of the overall funding in the bill. Representatives Jim Oberstar (D-MN), Peter Defazio (D-OR), Doris Matsui (D-CA), Earl Blumenauer (D-OR), and Anthony Weiner (D-NY) were instrumental in making these policy and funding advances for the transportation sector in the bill.

In July, the Senate EPW Committee is expected to look at this legislation, as well as S. 575, the Clean, Low-Emission, Affordable, New Transportation Efficiency Act (CLEAN-TEA). Several Senate Committees are expected to look at climate legislation in preparation for a floor debate in the fall. Smart Growth America is continuing to work to build support for similar provisions in the Senate bill, coupled with significantly more funding for smart growth and transportation choice strategies.

FY 2010 Interior-Environment Spending Bill Approved by House
INCLUDES SIGNIFICANT INCREASE IN FUNDING FOR SMART GROWTH OFFICE


Just before leaving for the July Fourth Recess, the House approved the FY 2010 Interior and Environment spending bill by a 254-173 vote. The $32.3 billion discretionary spending bill provides a 17 percent increase over non-emergency 2009 levels. It includes $5.146 million for the EPA smart growth office, as requested by the Administration, and close to Smart Growth America's request for $6 million. Of the total funding for the office, $3.9 million is found in Regulatory Innovation and $1.246 million is included from the Brownfields budget. This represents a significant increase in funding for the smart growth office, which has been funded at about $3 million for the past several years. Several Congressional offices, including Congresswoman Allyson Schwartz (D-PA) and Senators Mary Landrieu (D-LA) and Carl Levin (D-MI) have been instrumental in championing support for the office.

The Senate bill is slightly smaller at $32.1 billion, but it also includes the President's requested amount of $5.146 million for the EPA smart growth office. The Senate Appropriations Committee approved its spending bill last Thursday and will be brought to the Senate floor when Congress returns from recess. Moving forward, given the new partnership between EPA, HUD, and DOT for sustainable communities, Smart Growth America will be working to ensure the smart growth office is funded at a level that is more on par with the commitment of more than $100 million called for by HUD in this initiative.

House Committee Looks at The GREEN Act of  2009
SENATE COMPANION LEGISLATION INTRODUCED


The House Financial Services Committee has held several hearings on HR 2336, the Green Resources for Energy Efficient Neighborhoods (GREEN) Act of 2009, which is supported by Smart Growth America and many of its partners, including Enterprise Community Partners. Introduced by Rep. Ed Perlmutter (D-CO), the legislation promotes sustainable communities through provisions to create location-efficient mortgage incentives and increased energy efficiency in structures financed by the Department of Housing and Urban Development. HUD Deputy Secretary Ron Sims testified before the committee that HUD will provide assistance and cooperation on the bill. Members of the committee also expressed strong support for the legislation.

On June 25, Senator Sheldon Whitehouse (D-RI) introduced the Senate companion bill, the Energy Efficiency in Housing Act of 2009 (S. 1379), along with Senators Chuck Schumer (D-NY) and Robert Menendez (D-NJ). The Senate Committee on Banking, Housing, and Urban Affairs is expected to hold a hearing and markup of the bill soon.

House Committee Moves Forward With National Surface Transportation Bill
BILL FOCUSES ON STREAMLINING PROGRAM STRUCTURE, SHORT ON FUNDING DETAILS


Two weeks ago, Rep. James Oberstar (D-MN) released a concept paper for the new national surface transportation authorization bill. The document outlines the committee's priorities for the new legislation, which include consolidation and streamlining of existing programs, as well as establishing performance and outcome-based targets and funding distribution formulas. Last week, the nearly 800-page Surface Transportation Authorization Act of 2009 was released and a markup was held by the House Transportation and Infrastructure Highways and Transit Subcommittee. Republicans offered a dozen amendments during the markup, but by prior agreement with committee leaders all were withdrawn. The subcommittee approved the legislation by voice vote.

The same week, the Obama administration, led by DOT Secretary Ray LaHood, called for an 18-month transportation bill extension instead of the 6-year bill proposed by Chairman Oberstar, which has led to political turbulence over the issue in the House. Senator Barbara Boxer (D-CA), head of the Environment and Public Works committee that has jurisdiction over the bill stated her support last week for an 18-month extension, but stated that she opposed any policy reforms being included in that legislation. The Administration has issued support for several reforms in the extension bill to further their goals of more livable communities and a more performance-base system, but the details have not yet been released.

The Transportation for America coalition, of which Smart Growth America is a co-chair, commended Chairman Oberstar for releasing a draft bill that goes beyond just reauthorizing a modified version of the existing transportation law (SAFETEA-LU). There are some real signs of change in this bill and transportation reform advocates across the board are encouraged by the overall language and direction of the bill. However, while there are principles and vision in the introduction about performance, connectivity, environmental sustainability, public health, livability; reading the fine print in the legislation leaves unanswered questions and areas of concern - such as how funding will be allocated among programs.  Additionally, there are no clear, cross-cutting, national performance targets for measuring the success or failure overall of such a massive investment.
Read more about Transportation for America's analysis of the House bill.


Committees in Both Chambers Hold Hearing on Highway Trust Fund Shortfall
ISSUE MUST BE ADDRESSED BY CONGRESS BEFORE AUGUST RECESS


Last week, Transportation Secretary Ray LaHood appeared before the Senate Environment and Public Works Committee to discuss the looming Highway Trust Fund shortfall.  Currently, the Trust Fund is expected to run out of money by August, which will force Congress to deal with the problem before leaving for the month-long August recess. Complicating the issue is the September expiration of the current national surface transportation law, SAFETEA-LU, and the Administration's request for an 18-month extension of that law.  With healthcare and climate legislation also on the table, Congress has several major issues to juggle and rapidly depleting time to do it all.

Secretary LaHood made it clear that the Administration supports an 18-month extension of current law, with a few policy changes, and an immediate cash infusion for the Highway Trust Fund. He expressed hope that the extension would provide Congress with enough time to develop an innovative financing solution for our national transportation system. Most members of the EPW committee supported the Administration's decision. Various sources for replenishing the Highway Trust Fund were discussed, including using already appropriated stimulus funds or a $13 billion transfer of "interest" from the general fund.  Senator James Inhofe (R-OK) suggested that the $8 billion borrowed from the Highway Trust Fund for the General Fund in 1998, which was returned last September when the Trust Fund ran short, would have earned about $13 billion in interest during its time in the General Fund.

Also last week, a joint hearing on highway and transit investment needs was held by the House Ways and Means Subcommittees on Oversight and Select Revenue Measures. Witnesses agreed that the need for increased investment in the transportation system is clear. Chairman John Lewis (D-GA) discussed his recently introduced legislation, the Highway Trust Fund Fairness ACT (HR 2391), which makes changes to the administration of the Highway Trust Fund and seeks to make it solvent. There was discussion of the benefits of a tax based on vehicle-miles-traveled, which the Administration does not support, as well as tolling and congestion pricing. No clear solution for the solvency of the Trust Fund was established during the hearing.

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