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As of Nov. 30^th, the ‘lame-duck’ session of the 108^th Congress has failed to pass the $388 Billion FY '05 Omnibus Spending Bill; another Continuing Resolution (H.J. Res. 115) was approved on Nov. 24^th and signed by the President which grants a five-day extension period over the last Continuing Resolution, and will keep the Federal government in operation at FY’04 levels through midnight on Dec. 8^th.  

An ‘error’ was discovered buried among the thousands of pages of the spending bill (related to tax returns and issues of privacy) just hours before the Senate was to vote on it; the House has scheduled a return to session on Dec. 6^th, and the Senate on Dec 7^th, in order to amend the Omnibus so that it may be sent to the President for his signature.

Quote of the Week – 

Senator Kent Conrad (D-ND) on the Senate Floor:

“On Saturday, November 20, 2004, the American taxpayers dodged a bullet.  The Congress came close, much too close, to passing legislation that would have stripped every American of their right to privacy with regard to their tax returns.  The Senate averted this dangerous step, in part, because members of my staff - and one staffer in particular - came in to work on Saturday and read through more than 3,646 pages of a bill and its explanatory text…”

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Omnibus Delivers First EPA Cut in Years

The Omnibus Bill stipulates an  across-the-board 0.8 percent reduction in every Agencies’ final budget figures.  Even so, if or when the FY’05 Omnibus Spending Bill passes, for the first time in several years the EPA will be operating under a budget reduction.  Congress slashed the Agency’s spending during the pre-Thanksgiving weekend to $8.02B, almost $350M less than this year.  The cut was not as deep as the Bush Administration’s Budget Request that would have removed a further $250M.  

The Clean Water State Revolving Loan Fund is hardest hit, losing $259M from the year previous, down to $1.09B.  The Drinking Water State Revolving Loan Fund was budgeted at $843M, virtually the same as last year.  Senate Appropriations Committee Ranking Member Robert Byrd (D-W.VA) outlined the failure of the Omnibus to account for the necessary construction and upgrades needed in the nation's wastewater infrastructure system, and the need to begin to set aside the billions that will be required over the coming decades.

The EPA Science & Technology programs lose almost $40M, down to $744M under the Omnibus.  Some of the specific funding figures for programs listed in the S&T account are: $9M in FY '05 for Air Pollution Emissions Trading programs; $57M for Federal Vehicle and Fuel Standards; $17M for Air Toxics Research; $45M for Drinking Water Toxicology research; $176M for Human Health and Ecosystem Research; and $60M for general Drinking Water Research.

The EPA's Environmental Programs and Management account is funded in the Omnibus at $2.29B, about the same as last year.  Specific programs included are: $90M for the Climate Protection program; $28M for Enforcement and Compliance Assistance; $39M for Criminal Enforcement; $93M for Drinking Water programs (an $8M increase); $23M for the Chesapeake Bay; and $21M for the Great Lakes with an additional $22.5M for sediment cleanup in the Great Lakes.

The State and Tribal Assistance Grants (STAG), are funded at $3.58B, down $30M from FY '04, that include:  $50M for an Environmental Border program between the United States and Mexico; and $49M for various drinking water and wastewater infrastructure projects in rural and native Alaskan communities.

Despite the Administration’s objections, the Omnibus Spending Bill provides EPA with several hundred million dollars in earmarked grant money for drinking water and wastewater infrastructure projects in legislator’s home districts.  Generally, all non-defense, discretionary areas of the Federal budget have been targeted for spending reductions next year, reversing a trend that had continued for several years and which, at the EPA, marked an all-time high funding level of $8.37B in FY’04.  This year the government appropriated $418.0B for all non-defense related discretionary budgets; in FY’05 the total is estimated at $401.8B.

The Administration has rejected a request by EPA for a supplemental $161M in Homeland Security funding for FY’05, increasing the likelihood that some portion of the Agency’s security initiatives will have to be funded out of environmental budgets.  One EPA official commented that the Administration had only “budgeted for the base program, and that’s it,” but that the EPA’s 2002 Homeland Security strategy had originally been developed with an “assumption of no budgetary constraints.”

Several so called “environmental riders” on the Omnibus, and one that would have allowed EPA to approve pesticides without having to consider the effects on endangered species, have been removed from the latest version.  

The portion of the Omnibus providing for the Agriculture Department includes over $2B for Farmland Conservation programs, higher than recent years but below levels set in the 2002 Farm Bill.  The Agricultural appropriations also include $1.01B for the Environmental Quality Incentives program, about $15M higher than FY '04.  But again, it falls well short of the levels mandated by the Farm Bill.  The Wildlife Habitat Incentives Program will be cut to $46.6M, from the $60M recommended by the Administration and in both House and Senate bills, and is $38M lower than in the Farm Bill.

Legislators managed to approve funding increases for highway and transit programs in FY 2005 despite their failure to pass the Transportation Reauthorization Bill (TEA-21) during the 108^th Congress.  Even after the 0.8 percent across-the-board reductions, the Omnibus puts $34.4B into road construction projects, above FY’04’s $33.6B, and only very slightly below both the House and Senate figures. 

The $22.8B FY’05 Energy and Water Development Appropriations Bill was inserted into the giant Omnibus during the weekend before Thanksgiving, ending the bitter controversy over funding the $553M Yucca Mountain nuclear waste repository.  It provides for the Energy Department and its National Laboratory system, the Army Corps of Engineers, and the Bureau of Reclamation’s water projects.  The final $22.8B agreement is $329M below the Administration’s Budget Request.  It includes $957M for the Bureau of Reclamation, a $14M increase over FY’04; $4.66B for the Army Corps of Engineers, $125M more than this year; and the Environment, Safety and Health program will receive $27.7M.

KEY AGENCY NEWS RELEASES

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Study of High-Flow Release from Glen Canyon Dam

Dept. of the Interior, Nov. 22, 2004 – “The Department of the Interior's U.S. Geological Survey is collaborating with partner agencies to conduct scientific experiments designed to evaluate the effect of a high-flow release from Glen Canyon Dam on the natural resources of the Colorado River in Grand Canyon National Park… The high-flow test, which began on Sunday, Nov. 21, 2004, was launched after the successful completion of an Environmental Analysis and the issuance of a Finding of No Significant Impact statement - steps required by the National Environmental Policy Act.”  For more information, go to:  http://www.doi.gov/news/041122a  

FERC Commissioner Confirmed

Nov. 22, 2004 - “The Senate voted over the weekend to confirm Suedeen G. Kelly to a full five-year term as one of five Commissioners of the Federal Energy Regulatory. ‘The FERC family congratulates Commissioner Kelly on her November 21st re-confirmation by the Senate,’ said the current Commission Chairman.  Ms. Kelly’s new term of office will expire June 30, 2009.”  http://www.ferc.gov/press-room/pr-current/11-22-04.asp  

White House EPA Nominees Confirmed by Senate

On Nov. 19, 2004, the Senate confirmed four (Presidential) appointees to senior positions within the EPA. Stephen Johnson to become Deputy Administrator; Ann Klee as General Counsel; Charles Johnson as CFO; and Benjamin Grumbles to be the Assistant Administrator for the office of Water.  Said EPA Administrator Mike Leavitt, “These confirmations help solidify my executive team.”  

EPA Announces the Opening of Four New EMS Local Resource Centers

“The Office of Water, working in cooperation with the Global Environment and Technology Foundation, has announced the selection of four new Environmental Management Systems (EMS) Local Resource Centers (PEER Centers) to help local governments learn more about and adopt EMSs for their operations.  These Centers are part of the Office of Water's ongoing Public Entity EMS Resource (PEER) Initiative.  The new Centers are located at the University of Missouri-Rolla, Kansas State University, the University of Colorado, and EcoVenture in Oakland, California.´ For more information, go to:  http://www.peercenter.net/   

Release of 2001, 2002 Government Spending for Endangered Species Act

U.S. Fish & Wildlife Service - Nov. 29, 2004  

“The U.S. Fish and Wildlife Service today released reports on Federal and State government spending for implementing the Endangered Species Act in fiscal year 2001 and fiscal year 2002.  Total expenditures reported for fiscal year 2001 were $2.5 billion, of which $1.7 billion was reported under a new category of  "Other ESA Expenses."  Total expenditures reported for fiscal year 2002 were $1.2 billion, of which $358 million was reported as "Other ESA Expenses."   In FY 2000, the last year under the prior approach to reporting, the total was $610 million.”  For more information, go to:  http://news.fws.gov/NewsReleases/R9/861EFCE1-AD6E-528C-BA81DD605C721AE0.html  

Bills Introduced in the House:   Nov. 22-24, 2004

H.J. RES. 115  WOLF

Making further continuing appropriations for the fiscal year 2005, and for other purposes; referred to the Committee on Appropriations.  

[This is a 5-day Continuing Resolution for Federal spending that expires on Dec. 8^th, in the absence of an Omnibus spending bill.  Passed by both House and Senate on Nov. 24, 2004]

Federal Register Notices:  Nov. 22-30, 2004

PACIFIC NORTHWEST ELECTRIC POWER & CONSERVATION.  Notice of availability and opportunity to comment on sub-basin plan draft amendments to the Council's Columbia River Basin Fish and Wildlife Program.  FR  11/22/04  p.67966

AGRICULTURE.  Office of the Under Secretary, Research, Education, and Economics.  Notice of a Meeting of the Advisory Committee on Biotechnology and 21st Century Agriculture.   The seventh meeting of the AC21 has been scheduled for December 9 and 10, 2004.  The AC21 at this meeting will continue its work to develop a report examining the impacts of agricultural biotechnology on American agriculture and USDA over the next 5 to 10 years.  FR  11/23/04  p.68124

INTERIOR.  Fish and Wildlife Service.  Endangered and Threatened Wildlife and Plants; Designation of Critical Habitat for the California tiger salamander in Santa Barbara County.  Final rule.  We, the U.S. Fish and Wildlife Service, designate critical habitat for the Santa Barbara County population of California tiger salamander under the Endangered Species Act of 1973, as amended.  In total, approximately 11,180 acres fall within the boundaries of the critical habitat designation, located in northern Santa Barbara County, California. This final rule is effective December 27, 2004.  FR  11/24/04  p.68567

AGRICULTURE.  Natural Resources Conservation Service.  Notice of Appointees to the Agricultural Air Quality Task Force.  The Task Force provides recommendations and guidance on the development and implementation of air quality policy, and is chaired by the Chief of the Natural Resources Conservation Service and made up of the Department of Agriculture employees, industry representatives, and other experts in the fields of agriculture and air quality.  The Secretary of Agriculture has renewed the Task Force and has appointed qualified individuals to serve as members.  FR  11/29/04  p.69349

EPA.  National Drinking Water Advisory Council's Water Security Working Group Meeting Announcement.  Notice.  The EPA announces the third public meeting of the Water Security Working Group of the National Drinking Water Advisory Council, which was established under the Safe Drinking Water Act.  The purpose of this meeting is to provide an opportunity for the WSWG members to continue deliberations on the features of active and effective security programs for drinking water and wastewater utilities (water sector), to continue deliberations on incentives to encourage broad adoption of active and effective security programs throughout the water sector, and to begin deliberations on mechanisms to measure the extent of implementation of water security programs.  The WSWG meeting is December 15-17, 2004 at the Radisson Barcelo Hotel, Washington, 2121 P Street, NW., Washington, DC.  FR  11/30/04  p.69599