The Ferguson Group Blog

Senator Merkley to Introduce Water Infrastructure Bill

Numerous organizations have documented that the nation’s water infrastructure is aging and that we must increase the levels of investment to protect public health and safety, maintain environmental standards and avoid the economic losses caused by failing to act, including significant job losses.  With a Water Infrastructure Finance and Innovation (WIFIA) plan modeled after the successful Transportation Infrastructure Finance and Innovation Act (TIFIA), such a mechanism could lower the cost of capital for water utilities while having little or no long-term effect on the federal debt.  Senator Jeff Merkley (D-OR) looks to be acting on this need by introducing his take on a water infrastructure bill. 

Water infrastructure “is not the sexiest thing, but it’s essential”, Oregon State Treasurer Ted Wheeler said at the Portland Water Bureau’s Operations, Maintenance and Construction Facility on August 23 during Sen. Merkley’s WIFIA legislation unveiling.  Sen. Merkley is taking the water infrastructure challenge head-on with his new WIFIA bill.  WIFIA is intended to increase investments in infrastructure while maintaining the lowest possible cost and risk to both public and private water utilities by using currently low interest rates.  Currently, the overwhelming majority of funds invested in water infrastructure come from state and local sources.

Sen. Merkley didn’t discuss the specifics of the bill during his announcement, but reportedly the bill will be based off of a draft WIFIA bill proposed by Representative Bob Gibbs (R-OH).  It is rumored, according to a report from the Association of Metropolitan Water Agencies (AMWA), that Senator Merkley’s bill may also include provisions to promote “green infrastructure” and will allow water infrastructure projects of all sizes to compete for funding.    

Sen. Merkley expects to formally introduce his WIFIA bill after Congress returns to session from their August recess, sometime after Labor Day.  Rep. Gibbs, who chairs the House Transportation and Infrastructure Committee on Water Resources and Environment and whose subcommittee held hearings on WIFIA and other water project financing alternatives earlier this year, may introduce his version of WIFIA in September as well.

According to a report prepared by the AMWA, the American Water Works Association and the Water Environment Federation, even at a 30-year WIFIA loan repayment period (most folks hope for a 35 to 40-year repayment period) and a 1.36 percent spread between municipal rates and WIFIA rates (currently TIFIA rates are set at 2.73 percent and double AA municipal rates nationwide are 4.05 percent), that would generate savings that would provide the same value as a grant equal to 16 percent of a project’s total costs.   

What is your view?  Would WIFIA help your community accelerate work on much needed water infrastructure projects? 

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Use it or Lose it – Transportation Earmarks to be Redirected

On August 17, President Obama directed the U.S. Department of Transportation to redirect and quickly spend $473 million in highway earmarks from FY2003-2006 appropriations acts that, for a variety of reasons, could not be fully spent by a local sponsor.  Many sponsors have tried unsuccessfully to redirect the original funds, but found they could not due to the current earmark moratorium restrictions.   State departments of transportation now have the ability to use the unspent earmarked highway funds on any eligible highway, transit, passenger rail, or port project. Each state must submit a spending plan to the U.S. DOT by October 1 and funds must be obligated by December 31 or U.S. DOT will give the unobligated money to other states.

Some state DOTs are already contacting local sponsors with earmarks on the redirect list to determine whether the funds can be spent on the original project.  Beyond this first procedural step, carrying out this Presidential directive gets murky.  Questions regarding state and local authority to redirect earmarked funds away from designated projects are under consideration and it is possible that jurisdictional battles may erupt in Congress as well as the state, regional, and local levels.

Rumor has it, though, that in at least one state, plans are underway by the state DOT to give the original local sponsors first priority to obligate the earmarked funds and redirect the money to another project in their community. 

My colleagues and I are certainly watching this issue closely and will report back on whether this rumor proves true in a subsequent blog post.  In the meantime, I would advise any local or regional government agency that has an earmark on the list below to contact their State DOT immediately and inquire how their state plans to handle the directive.  And since there will undoubtedly be communities who cannot spend their funds, if I were a community with a transportation project in a state with unspent funds, I would consider identifying several suitable transportation projects in case a chance to submit a request for reprogrammed funds is presented. 

For the list of earmarks in question, click here.

FTA to Host MAP-21 Webinar Tomorrow!

Tomorrow, Federal Transit Administrator (FTA) Peter Rogoff and other FTA staff will present a comprehensive overview of what Moving Ahead for Progress in the 21st Century (MAP-21) means to Federal Transit Administration grantees and the transit riding public.  The webinar will take place on Friday, August 24th from 1:00-2:30 p.m. ET.

It is not too late to register for this webcast! To sign up, click here.

$17.5 million Grant Program for States with Distracted Driving Laws

This week, the National Highway Traffic Safety Administration (NHTSA) announced a new grant program, authorized by Congress under the Moving Ahead for Progress in the 21st Century Act (MAP-21), that would provide $17.5 million to states that have laws banning distracted driving on the books in fiscal year 2013. In order to be eligible for the grant program, states must have a law in place that allows officers to stop drivers for distracted driving or texting while driving. Congress also authorized an additional $5 million through MAP-21 for NHTSA to develop commercials and advertising that supports state enforcement of laws against distracted driving.

Once the notice appears in the Federal Register, states will have 45 days to apply for the grants.

Byrne JAG Program Awaiting Reauthorization Action in the Senate

Before the House left for August recess they passed the Edward Byrne Memorial Justice Assistance Grant (JAG) Program Reauthorization Act of 2012 (H.R. 6062). The Byrne JAG program provides invaluable flexible funding to state and local governments to help provide the necessary resources to fight crime and prevent victimization. Activities supported through this program include technology, crime prevention, prosecution, education, planning, corrections, treatment, and evaluation.

Under the current law, the Byrne JAG program is set to expire on September 30, 2012. H.R. 6062, sponsored by Rep. Marino (R-PA), would reauthorize the Byrne JAG program through Fiscal Year (FY) 2017 at $800 million per year.  The Byrne JAG program will need to be reauthorized before Congress can appropriate funds for next year.

Despite the looming expiration date, the House and Senate have both prioritized the program in their respective FY 2013 Commerce, Justice, Science Appropriations bills.  The House is proposing $370 million for the program in FY 2013, the same level as in FY 2012, while the Senate included $392 million for the Byrne JAG program in its bill.  The inclusion of funding in the proposed spending bills demonstrates that Congress understands the value of the Byrne JAG program.  Hopefully this means that the Senate will act quickly on the House approved version of the Byrne JAG Reauthorization bill when they return in September and an expiration of the program will be avoided.

Consider reaching out to your Senator to express the importance of this program to your community. Give your Senators examples of how your annual Byrne JAG funding allocations have helped deter and prevent crime in your community.

White House Response to the Drought

Last week, President Obama convened his White House Rural Council for one of a continuing series of policy meetings to review Executive Branch response actions and to develop additional policy initiatives to assist drought stricken communities, farmers, ranchers, and small businesses.  Following the meeting, the White House announced several new measures the U.S. Department of Agriculture (USDA) and other federal agencies are taking to help those impacted by drought.

Some of the relief efforts being provided include:

• USDA will utilize nearly $16 million in financial and technical assistance to immediately help crop and livestock producers in 19 states cope with the adverse impacts of the drought. In addition, USDA will transfer $14 million in unobligated program funds into the Emergency Conservation Program to assist in moving water and food to livestock in need and to rehabilitate land severely impacted by the drought.
• The National Credit Union Administration will allow an additional 1,000 Credit Unions to increase their lending to small businesses.
• The Small Business Administration, along with USDA and the Department of Commerce will host community outreach events.
• The Department of the Interior will provide additional grazing flexibility on federal lands.
• The U.S. Department of Transportation will grant emergency waivers for federal truck weight regulations and hours of service requirements to drought-stricken communities.
• USDA will allow farmers to apply this year’s crop indemnity payments toward their crop insurance premiums for the following crop year. As of this month, the 16 major providers of crop insurance have all agreed to forego interest charges on unpaid premiums through November.
• USDA is lowering the interest rate on its emergency loans, which help producers recover from production and physical losses associated with natural disasters, from 3.75 percent to 2.25 percent.

The measures the Administration has taken are extremely important but only a temporary fix. As my colleague Jennifer Imo  discussed earlier this week, Congress still needs to pass a comprehensive, multi-year farm bill when they return in September.  Only a comprehensive plan will  provide the complete disaster assistance that these  farmers and ranchers need and deserve.

Make the most of your August!

While your Congressional Delegation is enjoying a one month break from Washington, D.C. and back in their home state, take the time to meet with them. This is the perfect opportunity for you to schedule a meeting with them in their district office and discuss issues of importance to you and your community.

Are you proud of a new community program or public infrastructure? Instead of going to visit your member at their district office, consider inviting them to see some of the new and innovative things you are doing in and around your community.

Your members will be home until September 10^th, with short breaks to attend their respective conventions, so hurry up and schedule some face-time with them!

My E-mail Inbox this Morning….

If you’re like me, you’ve signed up to receive news and alerts by e-mail from the federal agencies your work with most.   FEMA tends to relatively judicious in the frequency of e-mails that they send, so when I receive one from them,  it always catches my eye. 

This morning’s inbox included an invitation to join FEMA’s National Preparedness Coalition:

“National Preparedness Coalition members empower themselves to prepare and to coordinate preparedness activities around National Preparedness Month for their families, neighbors, co-workers, and those with whom they may study or worship. The community is open and free to anyone who wishes to join. Members have access to preparedness resources including step-by-step preparedness guides, public service announcements, messaging, and other helpful resources. In addition, members collaborate by participating in preparedness discussions where they share best practices; and they connect with other members and FEMA personnel near them in the regional forums.”

This sounds worthwhile, and with National Preparedness month coming up in September, is certainly timely. 

I’m going to join by registering here.  I hope you will too.

Congress Leaves Town with No Farm Bill and No Drought Relief

 

The 2008 farm bill expires at the end of September and Congress will not return to Washington until mid-September.  That means a lot of negotiating must be done in August to move this bill before it expires.  The Senate passed its version of the 2012 farm bill in June, and it includes funding for disaster assistance for one year.  The House Agriculture Committee passed its version of the bill in July, but without greater cuts to the Supplemental Nutrition Assistance Program (SNAP) – formerly known as the food stamp program – House leadership doesn’t have the votes to pass the bill.  The Senate-passed bill includes a $4.5 billion cut to SNAP over 10 years; while the House committee-passed bill includes a $16.1 billion cut to SNAP – a cut too high to garner enough Democratic votes, and not enough of a cut for many conservative members.  And the stalemate continues. 

Best of luck to congressional staff that have to find a happy medium.   Until a deal is struck, there will be no aid to farmers and livestock producers that are suffering from this summer drought.  

Online Sales Tax Legislation Has its Day Before the Senate Commerce Committee

In late July  my colleague Sarah Stockdale gave us a great snapshot of the status and outlook for online sales tax legislation, so I wanted to share a quick update on the Senate hearing on this legislation that took place last week. As you’ll recall, Members of the House and Senate are pushing forward separate, but similar, pieces of legislation that would grant state and local governments the authority to collect taxes on internet and mail-order sales.

Senators Richard Durbin (D-IL), Michael Enzi (R-WY), and Lamar Alexander (R-TN) opened up the hearing on the Marketplace Fairness Act (S. 1832) by voicing their support for the bill before the Senate Committee on Commerce, Science & Transportation. The Marketplace Fairness Act would enforce a state’s right to collect a sales and use tax for sales transactions from online stores or through catalogs, treating them at the same level as sales from a “brick-and-mortar” store. The bill authorizes each member state under the Streamlined Sales and Use Tax Agreement to require all remote sellers, defined as a seller that does not have a physical presence (i.e. an online store), that do not qualify for a small-seller exception (stores with annual gross receipts in total sales of less than $500,000) to collect and remit sales taxes. 

Sen. Enzi said, the bill’s theme is simple: “states’ rights.”  However, S.1832 does not require all states to collect a salestax, as Sen. Durbin mentions, including states that do not have a sales tax like New Hampshire and Oregon. States are able to opt out of the bill if they wish.

This bill would overrule the 1992 Supreme Court’s decision in Quill Corp. v. North Dakota, where states are prohibited from collecting sales and use taxes from online retailers who do not have a physical presence in their state.

The testimony provided by the witnesses on the second panel is linked below:

Mr. Paul Misener, Vice President for Global Public Policy at Amazon.com

Mr. Steven Bercu, CEO and Co-owner of BookPeople, Austin, TX

Mr. Scott Peterson, Executive Director of Streamlined Sales Tax Governing Board

Mr. Steve DelBianco, Executive Director of NetChoiceCoalition     

Stay tuned to the blog for updates, and consider reaching out to your Congressional delegation regarding this legislation.