NATaT Washington Report

August 6, 2007

The "NATaT Washington Report" is a monthly email newsletter that provides timely information to town and township officials on the legislative, regulatory, funding, and policy decisions in Washington that could affect your communities. The Washington Report focuses on NATaT's primary federal issues. The Washington Report is produced by NATaT's federal representative in Washington, The Ferguson Group. For more information on the legislation described in this report, see http://thomas.loc.gov/ or contact The Ferguson Group. Contact NATaT federal director Jennifer Imo at 1.866.830.0008 or jennifer.imo@natat.org for more information.

The July 2007 Washington Report Contains Summaries of the Following Issues:

• Census
• Clean Water Restoration Act
• Election Reform
• Eminent Domain
• Energy Bill
• Environment and Natural Resources
• Farm Bill
• First Responders
• Homeland Security

Census

NATaT Joins Census Advocates to Restore Full Funding for the Census

On July 23, 2007, NATaT joined eighteen other organizations in a letter to Chairman Alan Mollohan of the Appropriations Subcommittee on Commerce, Justice, and Science to express concern about full funding for the U.S. Census Bureau's FY 2008 budget request.

In July, a full committee markup on the Census Bureau budget included a $30 million cutback in funding that the Bureau indicates it would be forced to take from funds to support various aspects of the Economic Census. Reduced funding for any projects of the Census Bureau could result in harming important project that impact population numbers in towns and townships. In the letter we urged Congress to restore funding.

Full funding for all census projects ensure an accurate count for small communities, and it is essential to NATaT's membership, and the organization supports full funding and programs designed to ensure more accurate census counts. 

Clean Water Restoration Act

On July 25, Senator Russ Feingold (D-WI) introduced the Water Resources Restoration Act, a companion bill to H.R. 2421, which was introduced by Energy and Commerce Committee Chairman John Dingell (D-MI) and Transportation and Infrastructure Committee Chairman James Oberstar (D-MN). Both House and Senate bills would give the U.S. government broad authority to regulate waters and wetlands, by amending the Federal Water Pollution Control Act to clarify the jurisdiction of the U.S. over waters of the U.S. Both the House and Senate legislation address a high court ruling in the Solid Waste Agency of Northern Cook County (SWANCC) v. U.S. Army Corps of Engineers that prohibited the government from using the migratory bird rule to protect wetlands isolated from navigable waters.

Both bills seek to define the term waters of the United States which re-establishes the commonly held understanding of the Clean Water Act prior to the Supreme Court rulings. The House and Senate legislation also includes a savings clause that clarifies that existing Clean Water Act exemptions, including those for agriculture, mining and silviculture, will remain in place.

Like the House bill, fierce opposition is expected to be raised against Senator Feingold's bill. Ranking Member of the Senate Environment and Public Works Committee James Inhofe (R-OK) has long resisted congressional action, arguing that questions over wetlands should be handled by local and state agencies.

Towns and townships are concerned about an overbroad federal jurisdiction over the waters and wetlands in our local communities, and the NATaT Board of Directors will remain active in monitoring the progress of proposed federal legislation to expand federal control over local waters.

Election Reform

The Voter Confidence and Increased Accessibility Act of 2007, H.R. 811, introduced by Representative Rush Holt (D-N.J.) would amend the Help America Vote Act of 2002 by requiring a voter-verified permanent paper ballot in time for the 2008 elections. This bill would impose numerous federal mandates for the 2008 elections including a requirement that all ballots to be printed on archival quality paper and meet federal standards for converting the printed ballot into accessible media for verification by visually impaired voters.

However, H.R. 811 may be put on hold until 2010 because states can't update their equipment in time for the 2008 elections. Representative Rush Holt still remains persistent in pushing his bill ahead in the House. He hopes to get the bill passed when Congress returns from August recess.

NATaT is working with NACo to oppose this measure, emphasizing that the federal mandates prescribed in the bill for next year's election are unworkable, as federal standards for many of the mandates have not yet been issued. Additionally, H.R. 811 and S. 1487 would dictate extremely expensive and time-consuming practices for conducting audits and recounts even when one candidate wins by a wide margin. There is simply not enough time to enact state conforming legislation, do testing and procurement, develop training materials, and train election officials, pollworkers and voters on how to use equipment they have never used.

Eminent Domain

The "Strengthening the Ownership of Private Property Act of 2007" or the "STOPP Act of 2007" (H.R. 926), introduced by Representative Stephanie Herseth (D-SD), would prohibit all federal economic development assistance for states and localities that use eminent domain to obtain property for private commercial development or that fails to pay relocation costs to persons displaced by use of the power of eminent domain for economic development purposes. The proposed legislation defines federal economic development assistance as: the Department of Agriculture's rural development grants and loans; Economic Development Administration financial assistance; the Department of Housing and Urban Development's Community Development Block Grants, Brownfields Economic Development Initiative, rural housing and economic development programs, and Indian housing block grant program; the Bureau of Indian Affairs' grants, loans and loan guarantees; the Department of Treasury's community development financial institutions fund program; Appalachian Regional Commission development programs; the National Credit Union Administration's revolving loan funds; the Denali Commission's programs; the Delta Regional Authority's development resources; and the Department of Health and Human Services' discretionary awards. The bill is currently supported by 25 House co-sponsors and is currently pending before the House Subcommittee on Healthy Families and Communities.

The "Private Property Rights Protection Act" (S. 48), introduced by Senator John Ensign (R-NV), would also make a local government ineligible for federal funding if it "engages or participates in a taking or condemnation of any real property interest not for a public use or public purpose, without the consent of the owner of such real property interest, under the power of eminent domain." The bill would require local governments to certify, under penalty of perjury, that any federal funds it receives would not be used to "further any economic development associated with an exercise of eminent domain power which is not in furtherance of a public use or public purpose" and would allow the Commissioner of the Internal Revenue Service (IRS) to audit any town or township that has made such a certification. Furthermore, the bill would expose local governments to lawsuits for violation of the Act. The bill is currently supported by three Senate co-sponsors and has been referred to the Senate Committee on Finance.

Prospects for the two introduced eminent domain bills are uncertain, as key Committee and congressional leaders question whether traditional local powers should be undercut. What is certain is that efforts to weaken the ability of local governments to judiciously exercise eminent domain while paying just compensation will continue. NATaT, will continue to work with other state and local government organizations to monitor proposed eminent domain legislation in this Congress and to protect local government prerogatives to oversee land use decisions in their communities.

Energy Bill

The House passed an 800-page energy bill on August 4 which includes legislation from twelve different House committees. The bill, H.R. 3221, includes a $15 billion dollar tax package which raises taxes on the oil and gas industry and provides tax incentives for alternative fuel vehicle technology and implementation. Additionally, H.R. 3221 includes the Energy Efficiency Block Grant (EEBG) program which authorizes $10 billion over 5 years for states and local governments to increase energy efficiency. The House also adopted a renewable portfolio standard (RPS) as an amendment introduced by Representative Tom Udall (D-NM) which requires electric companies to generate 15% of their power from renewable sources by 2020. There is no corporate average fuel economy standards (CAFE) language in the House bill.

The Senate was able to pass energy legislation in June which included CAFE standards requiring vehicles to achieve 35 miles-per-gallon by 2020. The bill failed to include an effort by Senator Jeff Bingaman (D-NM) to require electric utilities to provide 15% of their energy from renewable sources. The Senate version also included the EEBG program.

Senate and House conferees will have many details to iron out when they meet in terms of CAFE, RPS and controversial tax provisions. Furthermore, Department of Energy Secretary Samuel Bodman has already threatened that President Bush will veto this legislation because it does not do enough in regards of energy independence.

Environment and Natural Resources

Water Resources Development Act (WRDA)

During the week of July 23, the House and Senate conferenced the Water Resources Development Act of 2007. The conference report passed the House on August 1^st and is expected to pass the Senate soon in spite of a veto threat by President Bush.

The conference bill, H.R. 1495, authorizes $21 billion for the Army Corps of Engineers to implement water infrastructure projects including improvements to inland navigation, flood-zone protection, coastal protection and environmental protection and enhancement. The bill creates authority for close to 400 new projects while continuing authorization or modifying over 300 existing projects.

Critics of the bill believe that the bill does not provide enough reform and oversight of the Corps of Engineers and fiscal conservatives believe that the funding levels are too high. The President has threatened vetoing the bill because it costs $5 billion more than the Administration's budget request and includes projects that the Administration believes are outside the mission of the Corps.  If the President vetos the bill, Congressional lawmakers believe that they have the two third majority votes in both chambers needed to override the President's veto.

Many towns and townships are directly involved or affected by water resource projects on their local rivers, lakes, coasts, canals, reservoirs, and wetlands. NATaT supports the passage of WRDA legislation that is badly needed to support local water resource improvements and projects. WRDA legislation should include increased funding for local projects, improvements to the Corps planning process to reduce delays in Corps projects, fair cost-share methodologies for local project sponsors, and broadened Corps authorities to support local waterfront revitalization.  

Farm Bill

On July 27, the House passed H.R. 2419, a $286 billion Farm Bill Extension Act of 2007. The bill amends and extends through fiscal year 2012 the federal farm support, commodity price support, food assistance, agricultural trade, marketing, rural development, conservation and other policies of the omnibus 2002 Farm Security and Rural Investment Act (PL 107-171).

Highlights of the Farm Bill include $30 million for grants that would support development, storage, treatment, purification, or distribution of water and the collection, treatment or disposal of waste in rural areas, and $15 million for business development or labor training in rural areas. The legislation would also provide $25 million for the Secretary of Agriculture to establish a national rural water and wastewater rider program to provide technical assistance to help bring small public water systems into compliance with state and national environmental regulations, and $35 million to assist residents in rural areas and small communities to comply with the Water Pollution Control Act or the Safe Drinking Water Act. The bill also establishes grant and loan programs for rural healthcare facilities and a new Rural Entrepreneurship and Microenterprise Assistance Program.

The bill includes a new definition of rural towns eligible for loans to develop broadband networks. The current law defines eligible rural towns as any area of the U.S. that is not contained in an unincorporated city or town with a population in excess of 20,000 inhabitants. The new definition would exclude suburban municipalities, where broadband access is often well established and would prohibit the Secretary of Agriculture from giving loans to communities that are already served by more than three service providers. The bill also establishes a new National Center for Rural Telecommunications Assessment.

The bill continues the Conservation Reserve Program, holds funding steady for the Wetlands Reserve Program, increases funding for the Farm and Ranchland Protection Program, freezes enrollments in the Conservation Security Program, and expands the definition of land management practices in the Environmental Quality Incentives Program.

Senate debate on the Farm Bill is not expected until September or later. Senator Tom Harkin (D-IA), the Chairman of the Agriculture, Nutrition and Forestry Committee, has promised to boost funding for land conservation programs above the levels in the House Farm Bill. Current farm programs expire September 30. If Congress is unable to complete action on a new Farm Bill by then, a short-term extension of the law will be necessary.

The White House has threatened to veto the House-passed bill. The Bush Administration opposes a tax provision on foreign companies that avoid U.S. taxes by using offshore havens that will be used to offset $4 billion in additional funding for nutrition programs.

The rural development and broadband deployment programs supported by federal farm legislation are essential to towns and townships. NATaT will remain active in the Farm Bill reauthorization process to ensure that these programs are adequate to handle the national needs of small and rural communities, and that NATaT communities are eligible to participate in these programs.

First Responders

Volunteer Responder Incentive Protection Act of 2007 (VRIP Act, H.R. 943/S. 1466)

On May 23, Senators Christopher Dodd (D-CT) and Gordon Smith (R-OR) introduced S. 1466, the Senate companion bill to the House Volunteer Responder Incentive Protection Act, H.R. 943. The bill is currently pending before the Senate Finance Committee and has three cosponsors. The House version of the Volunteer Responder Incentive Protection Act of 2007 was introduced on February 8^th by Representative John Larson (D-CT). The House bill has 152 cosponsors and is currently pending before the House Ways and Means Committee.

The bills would amend the Internal Revenue Code of 1986: (1) to exclude from gross income real or personal property tax rebates or any other benefits provided to volunteer firefighters and emergency medical responders; and (2) to exempt from social security, unemployment taxes, and wage withholding real or personal property tax rebates or any other benefits provided to volunteer firefighters and emergency medical responders. "Any other benefits" is defined as a benefit, other than a property tax rebate, that a state or local government provides an individual for serving as a member of a qualified volunteer emergency response organization, such as a small stipend. Volunteer firefighters and emergency medical responders must be members of a volunteer emergency response organization that is organized and operated to provide firefighting and emergency medical services, as required and recognized by the state or local government.

Examples of some of the recruiting and retention incentives, aside from property tax abatements, that communities are currently experimenting with include modest stipends that are sometimes paid per call or in lump-sums per year or quarter, health benefits, retirement awards, state income tax credits, length of service awards, and death benefits. The bill language provides flexibility to allow states and local governments to adopt the appropriate incentive programs and structure them through their own legislatures. Various tax incentives are currently offered to volunteer emergency responders in five states: Connecticut, Maryland, South Carolina, New York, and Delaware.

Volunteer firefighters and EMS personnel are integral to public safety in towns and townships. NATaT strongly supports this proposed law that would provide appropriate incentives and protections for the men and women who volunteer to serve their local communities through volunteer fire and EMS companies. NATaT has teamed up with the National Volunteer Fire Council, the Congressional Fire Services Institute and the International Association of Fire Chiefs to support H.R. 943 and S. 1466, and sent a joint letter to Senators Dodd and Smith thanking them for their support of this issue.

Thanks to the information from towns and townships across the nation provided to NATaT from the recently disseminated tax surveys, we are currently compiling data regarding the impact of volunteer firefighters and EMS personnel on your state. That information will be shared with members of NATaT's congressional delegation, including Rep. Larson and Senator Dodd, who are spearheading this legislation.

Homeland Security

Grants for Local Law Enforcement, Fire Departments and Volunteer Firefighters

SAFER Grant Program

The Department of Homeland Security (DHS) is now accepting applications for the Staffing for Adequate Fire and Emergency Response (SAFER) grant program. The application period will close on August 31 at 5pm EDT. The SAFER grant program provides funding directly to fire departments and volunteer firefighter organizations to increase the number of front-line firefighters available to respond to fire and fire-related emergencies. The SAFER grants fund two specific activities: (1) the hiring of firefighters, and (2) the recruitment and retention of volunteer firefighters. There will be approximately $115 million available. Awardees will eligible for a grant performance period of five years, during which time the Federal contribution to salaries will diminish. There is no limit on funding requested through an application. There is no local match requirement and no maximum Federal share limit under the Recruitment and Retention of Volunteer Firefighters Activity.

DHS has developed an on-line applicant tutorial to assist in the development of competitive applications. Applications will be accepted electronically until the close of the submission window.

Grant for Interoperable Communications

On July 18, Homeland Security Secretary Michael Chertoff and Commerce Secretary Carlos Gutierrez announced the Public Safety Interoperable Communications (PSIC) grant allocations totaling $968,385,000. Awards were made utilizing a risk-based formula, with a minimum level of $3 million distributed to each state and $500,000 to each territory. Each state will be required to pass-through 80 percent of its allocation to sub-state entities such as, local government and designated UASI regions.

PSIC grant funds will assist public safety agencies in the acquisition and deployment of interoperable communications systems, as well as related training to enhance the ability of first responders to communicate via voice, data, and/or video signals. Projects supported with these funds must be compatible with the 700 mhz spectrum. Funds may be used to acquire systems utilizing the 700 mhz spectrum, or used to make another type of system compliant and interoperable with a 700 mhz system.

Many towns and townships have risks to local homeland security, and have needs for federal funding to protect against those risks. However, the homeland security funding provided by the federal government is heavily focused on urban areas, high security risk areas and state-based security plans. Towns and townships with genuine homeland security needs must demonstrate those needs and work in partnership with their larger regions and states to be included in state-based homeland security spending plans. Critical programs for towns and townships include SAFER grants and interoperability communications grants. These programs can fund small community projects but, again, towns/townships need to coordinate with regional and state authorities to demonstrate genuine need. NATaT supports approaches that provide additional grant funding to all communities, including small towns, for these needs.