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FY11 Appropriations Process Moving Forward

Members of Congress face a busy week as they attempt to advance some major bills before the start of the July Fourth recess.  At the same time, the FY11 appropriations process may also begin to gear up this week and move forward after the July recess period.

House Democrats would like to approve the FY10 supplemental budget by the end of this week, which would provide critical war funding as well as some other “emergency” funding including money to help states prevent teacher layoffs.  Democratic leaders are considering using a process where two separate votes would be taken; one for the war money and another for all the other funding.  The supplemental plan now being circulated by Democrats would total $61.5 billion, and would include $10 billion to prevent K-12 teacher layoffs and $4.95 billion for Pell grants.  The Pell grant funding would help fill a hole in the president’s budget request for FY11, and effectively free up discretionary spending for this year’s appropriations bills.

Meanwhile, we may see action on the FY11 appropriations process this week as the House Appropriations subcommittees begin to consider a series of FY11 spending bills.  House appropriators could have half their bills approved at the subcommittee level by the end of the week, with five markups scheduled.  The Homeland Security Appropriations Subcommittee approved its draft last week, and the following five subcommittees are set to meet in coming days: Commerce-Justice-Science (Tuesday); Agriculture and State-Foreign Operations (Wednesday); and Legislative Branch and Transportation-HUD (Thursday).   However, most of these bills are not expected to be considered on the House floor before November, necessitating a long-term continuing resolution (CR).   Republican appropriators have already signaled that they intend to offer amendments at the subcommittee mark-ups as they may not get another chance to express their concerns about federal spending until after the mid-term elections.   

The Senate may also begin to move a few of their own spending measures.   The Chair of the Senate Appropriations Committee has suggested that a couple of the FY11 spending bills would be considered this week but the schedule is still unclear at this point.  If markups for spending bills are scheduled this week and the committee follows past practices, both a subcommittee and full committee markup would be held for the bills considered.

Senate Fails to Pass Extenders for the Third Time

On Thursday, Senate Democrats failed for a third time to pass a jobs and economic relief bill (tax extenders bill).  Republicans rejected the $100 billion-plus package, which included payments to states to cover for Medicaid costs and an extension of unemployment benefits.  This latest version of the bill reduced the original $24 billion in new state assistance for Federal Medical Assistance Percentages (FMAP) to just $16 billion and also included a phase out of payments altogether. The smaller FMAP payments were also fully paid for with offsets.  Unfortunately, that was not enough to attract the 60 votes necessary and the measure failed 57-41.  Both Senators Murray and Cantwell supported the measure.

Individual portions of the bill may be revived, especially given the almost 1.2 million unemployed workers who are currently living without unemployment benefits.  The FMAP payments are also critical to roughly 29 states – including Washington State – as they have all included these anticipated funds in their current budgets. Senate Majority Leader Harry Reid (D-NV) has expressed great frustration with yet another failure to pass this measure and announced he would pull the bill from the floor and turn to other legislation. 

The Senate will go home at the end of next week for the July Fourth recess period.  When they return, it is expected that they will focus their debate on energy policy, including legislation related to off-shore oil drilling. They will break again on August 6th for a 5-week period.  Unless there is a major breakthrough with those opposed to the bill, Reid seems prepared to wait until after Labor Day before trying again on the extenders bill.

Energy & Climate Action Remains Uncertain

The Gulf oil spill continues to complicate negotiations on a legislative pathway for energy and climate legislation.  While many agree, including the President, that Congress must take action on an energy bill this year, several moderate senators remain unconvinced that a climate bill can garner the necessary votes in the Senate.  The Senate continues to discuss potential measure that would include provisions such as renewable energy incentives and standards, energy efficiency improvements, revisions to offshore oil and gas policies, and may also include climate change language that regulates greenhouse gas emissions.  

The House passed a combined energy and climate measure (HR 2454) last year.  But that bill and other proposals have stalled in the Senate.  President Obama cited the House measure in his televised speech from the Oval Office on Tuesday evening but he did not specifically mention action to combat greenhouse gas emissions.  Today, the Senate Democratic Caucus plans to discuss prospects for action this year on energy and climate bills.

Multiple proposals, or portions of those proposals, are on the table for discussion.  Senate Energy and Natural Resources Chairman Jeff Bingaman (D-NM) successfully moved an energy policy bill (S 1462) out of his committee last year that includes a renewable electricity generation standard, offshore oil production allowances, and other standard energy policy revisions.  Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) are pushing for their climate change proposal, which has not yet been introduced.   The Kerry-Lieberman measure adds nuclear power and state offshore oil and gas revenue-sharing incentives in an attempt to garner Republican support.  Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) introduced their version of a climate proposal (S 2877) last year, which proposes a “cap and dividend” solution as opposed to the more common “cap and trade” option.  Finally, Senator Richard Lugar (R-IN) recently introduced yet another energy and climate research bill (S 3464).  Except for the Lugar proposal, all the measures were crafted and unveiled prior to the Gulf of Mexico oil spill.

The Office of Federal Relations has reviewed all the current proposals and will monitor the process closely if the Senate does decide to move forward on energy and/or climate legislation this year.

Reauthorization of the COMPETES Act Stumbles (Again)

The House of Representatives has run into difficulty in pasing the reauthorization of the America COMPETES Act. After failing to advance to a final vote last week, because of passage of a motion to send the legislation back to committee for additional consideration, on Wednesday May 19th the House failed to pass a revamped version under the expedited procedure of suspension of the rules.  The vote was 261 to 148, which was 12 votes short of the two-thirds vote needed for approval.  Fifteen Republicans voted in favor of the bill, including Congressman Dave Reichert (R-WA-8th District); no Democrats opposed it.

Following the vote, House Science and Technology Committee Chairman Bart Gordon (D-TN) stated that he will continue to move the bill towards passage. He commented that “this bill is too important to let fall by the wayside.”  Continue reading “Reauthorization of the COMPETES Act Stumbles (Again)”

Energy and Climate Legislative Update

The US Senate returns to Capitol Hill this week to tackle a full agenda starting with a measure to increase the federal debt limit (HJ Res 45).  Likely amendments to the resolution include one by Senator Lisa Murkowski (R-AK) to halt the EPA rulemaking based on the so-called endangerment finding announced last month.  The endangerment finding opens an alternative route for reducing greenhouse gas emissions by using existing EPA regulatory authority under the Clean Air Act (PL 101-549) to set emissions limits.

EPA Endangerment Finding:  http://www.epa.gov/climatechange/endangerment.html

While the Senate this week debates the EPA rulemaking on climate change, there is little enthusiasm in the Senate for climate change legislation.  Most political insiders believe that climate legislation is a wild-card issue on the congressional calendar this year.

Congressional committees this week scheduled their first hearings and markups of the year.  On Thursday (January 21), Energy Secretary Steven Chu testifies at a hearing of the Senate energy and Natural Resources Committee on climate change research priorities.

Most of the legislation introduced during the first session of the 111th Congress will continue to be considered by Congress.  Key pieces of pending legislation on energy and climate change issues include:

S 1733, Clean Energy Jobs and American Power Act (Boxer-Kerry bill)

HR 2454, American Clean Energy and Security Act (Waxman-Markey bill)

S 1462, American Clean Energy Leadership Act (Bingaman bill)

The Office of Federal Relations will monitor these and other pieces of climate change legislation as the year progresses and post updates to this site as new information becomes available.

UPDATE:  Dorgan Predicts No Broad Climate Bill This Year

Senator Byron Dorgan (D-ND) predicted today that he did not think the Senate can pass sweeping climate change legislation this year, citing the difficulties with completing health care reform.  Dorgan added the opinion was only his judgment and cited no specific evidence.  Instead, Dorgan suggested that he will push for passage this spring of energy legislation reported by the Senate Energy and Natural Resources Committee in June, which contains a provision opening up the eastern Gulf of Mexico to oil and gas exploration and a renewable energy standard.  Dorgan has cited strong concern for months about the prospects of setting up a massive new market for carbon as called for in cap-and-trade legislation backed by the Obama administration and many Democratic leaders, and in turn he has been a leading skeptic about its chances.  Dorgan, who chairs the Senate Energy and Water Appropriations Subcommittee, recently announced that he is not seeking re-election this fall.