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August 15, 2007
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F E D E R A L |
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Hill Focuses on Infrastructure in Wake of Bridge Collapse
SENATE PASSES STUDY COMMISSION BILL
The tragic collapse of the I-35W bridge in Minneapolis has vaulted the issues of infrastructure repair and finance to the top of the congressional agenda. Days after the incident, the Senate unanimously cleared legislation to establish a special study commission. Congress approved emergency funding for Minneapolis, and a number of key leaders raised the idea of a gas tax increase. President Bush again rejected any consideration of an increase in the gas tax, but the issue of financing needed for infrastructure investment is likely to be a hot topic once Congress returns from the August recess.
The Senate-approved infrastructure bill establishes an eight-person commission charged with studying the state of the nation's infrastructure, trends in financing, processes for investment and maintenance decisions, and the impact of development patterns on demand. Planning is included among the areas of expertise required for the commission. The study, along with recommendations for federal action, is due in February 2009.
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In this issue:
F E D E R A L
Hill Focuses on Infrastructure in Wake of Bridge Collapse
F E D E R A L
Financial Services Committee Approves Housing Trust Fund
F E D E R A L
House Passes Transportation, Housing Spending Bill
F E D E R A L
House Clears Energy Bill
F E D E R A L
FTA Releases New Starts Rules for Comment
S T A T E
Washington: King County Mandates Climate Analysis
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Seeking a more immediate response, Sens. Chris Dodd (D-Conn.) and Chuck Hagel (R-Neb.) introduced the National Infrastructure Bank Act, S. 1926. The measure would streamline the process by which national infrastructure projects are targeted and create an independent national bank to identify, evaluate, and help finance projects of substantial regional and national significance. Projects could include publicly owned transit systems, roads, bridges, drinking water and wastewater systems, and housing. The legislation specifically lists "land use, including those that promote smart growth" as one of the performance standards to be used to evaluate projects.
House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) announced plans to push a bill that would establish a fund to repair or replace structurally deficient bridges, possibly from a "temporary user fee" on gasoline. Former panel chairman Rep. Don Young (R-Alaska.) advocated a 5-cent hike in the gas tax. President Bush announced his opposition to any increase, permanent or temporary, in a press conference. The tax has not changed since 1993. |
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F E D E R A L |
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Financial Services Committee Approves Housing Trust Fund
FUND AND RELATED FINANCING BILL MOVE TO FLOOR
Efforts in Congress to establish a federal trust fund for affordable housing cleared another key hurdle with approval of H.R. 2895 by the House Financial Services Committee on a bipartisan vote of 45–23. The legislation is likely to be approved by the House when it reconvenes in September.
The bill provides dedicated sources of funding for the production, preservation, and rehabilitation of 1.5 million affordable homes in 10 years. At least 75 percent of the funds will be for housing households that are extremely low income, earning less than 30 percent of an area's median income. This targeting of funds based on income increases once the fund reaches $2 billion. The legislation provides formula grants to states and localities, and allocation plans would be required. Grant criteria include consideration of "proximity to public transportation, job opportunities, child care, and community revitalization projects."
Revenue for the trust fund will come from two primary sources: government-sponsored enterprises (Fannie Mae and Freddie Mac) and Federal Housing Administration insurance revenues. The FHA set-aside for the trust fund is established in separate legislation already approved by the Financial Services Committee and pending before the full House. Trust fund revenues from government-sponsored enterprises were approved as part of broad reform legislation passed earlier this year. |
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F E D E R A L |
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House Passes Transportation, Housing Spending Bill
PRESIDENT THREATENS VETO
The U.S. House of Representatives approved a $104.4 billion spending package for transportation and HUD programs, H.R. 3074, for Fiscal Year 2008. In early July, the Senate Appropriations Committee approved its transportation and housing appropriations legislation. That measure, S. 1789, is awaiting consideration by the full Senate. President Bush sharply criticized the House bill and has threatened a veto unless spending is curtailed.
The House-passed bill increases funding to $4 billion for Community Development Block Grants. The HOPE VI program, which was targeted for elimination in the President's budget, is slated for $120 million in the House bill. The bill provides $9.731 billion for federal transit programs in FY 2008, the full amount authorized in SAFETEA-LU. If enacted, it would be an increase of $756.1 million, or 8.4 percent, over the FY 2007–enacted level.
The bill also contains strong new language urging the Department of Housing and Urban Development to do a better job of encouraging access to transit and energy efficiency in federal housing programs. A new interagency working group is funded in the bill to coordinate federal housing and transportation programs.
With the new fiscal year set to begin on October 1, appropriations issues will dominate the congressional agenda following the August recess. Given the tight timeline and looming confrontation with the Bush administration, it appears likely that few measures will be signed into law before the end of the current fiscal year. |
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F E D E R A L |
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House Clears Energy Bill
HIGHER CAFE STANDARDS ON HOLD; BLOCK GRANTS ADVANCE
In one of its last acts before a month-long recess, the House approved major energy legislation. The 241–172 vote, taken in a rare Saturday session, sets up conference committee deliberations to reconcile the measure with energy legislation passed in July by the Senate.
Like its Senate counterpart, the House bill creates a block grant program for state and local governments to implement various energy efficiency and conservation measures and projects. The formula grants are modeled on the Community Development Block Grant program, with 70 percent of funding set aside for eligible cities and counties. The House version authorizes $2 billion annually through 2012. The new program would be administered by the Department of Energy.
On other issues, the two chambers appear far apart. The House bill failed to include any increase in corporate average fuel economy while the Senate raised CAFE standards to 35 miles per gallon by 2020. Unlike the Senate bill, the House version did address renewable energy portfolio mandates with a requirement that 15 percent of the nation's electricity be produced by wind, biomass, and other renewable energy sources. The House package also includes a variety of tax provisions previously held up by procedural tactics in the Senate.
The bill brought together contributions from nearly a dozen different committees. Included in the final package were provisions intended to encourage stronger building codes for residential buildings and creation of a federal green building initiative as well as a zero-energy commercial building initiative. Among the bill's important transportation-related components are grants for transit agencies and a new requirement that state DOTs must spread any federal funding rescissions proportionally across programs and modes instead of disproportionately cutting non-highway programs.
As House and Senate leaders seek a compromise energy package, both chambers plan to move forward with greenhouse gas emission bills this fall. Several competing versions of a cap-and-trade emission regulation system have already been introduced.
APA's upcoming Federal Policy & Program Briefing in Washington will feature a special half-day of sessions on energy and climate policy. More information is available at www.planning.org/policyconference/. |
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F E D E R A L |
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FTA Releases New Starts Rules for Comment
COMMENTS DUE NOVEMBER 1
The Federal Transit Administration has released new proposed rules for the New Starts and Small Starts transit program. The draft rules were issued in the August 3 issue of The Federal Register and are available online at http://dmses.dot.gov/docimages/pdf102/480803_web.pdf.
The draft outlines new guidance and procedures for evaluating transit projects seeking funding through the New Starts and Small Starts program. It details how FTA will weigh individual factors, such as cost effectiveness and economic development, in considering funding requests.
In recent years, the number of communities seeking funding under New Starts has risen sharply. The Small Starts program was created in SAFETEA-LU to provide an expedited process for smaller transit projects, like streetcar systems. The New Starts Notice of Proposed Rulemaking (NPRM) will be available for comment until November 1, 2007. APA is seeking member input. Comments may be forwarded to govtaffairs@planning.org. |
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S T A T E |
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Washington: King County Mandates Climate Analysis
IMPACTS ON CLIMATE CHANGE MADE PART OF EIS REVIEWS
King County, Washington, Executive Ron Sims has issued an executive order requiring county departments to consider climate impacts as part of their project reviews under the Washington Environmental Policy Act (SEPA). The order is the first of its kind in the country. It notes that, when acting as a SEPA lead agency, King County is in a unique position to require appropriate consideration of climate impacts in both public and private projects undergoing county review. The executive order becomes effective September 1, 2007.
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Register now for APA's 2007 Federal Policy & Program Briefing, September 30–October 2. Get insights into the latest developments in Washington and what it means for planning in your community. Program details and registration are available at www.planning.org/policyconference.
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