In this issue:

The defeat of Prop 98 marks another setback for advocates of regulatory takings. Last year Oregon voters largely repealed a takings initiative, Measure 37. Voters in Alaska's Mat-Su Borough crushed a ballot initiative modeled on Measure 37. In 2006, three of the four takings measures on state ballots were rejected.

House Subcommittee Approves Coastal Zone Management Act Reauthorization
PROVISIONS ADDED FROM LAST YEAR'S ENERGY BILL

Among the bills considered at the House Natural Resources Fisheries, Wildlife and Oceans Subcommittee mark up on Wednesday was a reauthorization of the Coastal Zone Management Act. The bill, H.R. 5451, was approved by voice vote. It was introduced by Del. Madeline Bordallo (D-Guam) earlier this year and originally was considered to be a non-controversial reauthorization of the 36-year-old act. Instead Bordallo moved the bill through the subcommittee with a manager's amendment that added several other related bills to the legislation.

The most significant additions to the bill include provisions to help states address renewable energy projects, coastal access for commercial fishers, and plans for climate change, all of which were removed from last year's energy bill. The bill also includes up to $90 million in additional funding for grants in the next three years. Despite general approval by voice vote, subcommittee ranking member Henry Brown (R-S.C.) said he would remove his name as a bill cosponsor because of the additional provisions.

Other amendments are expected to be added when the bill is taken up by the full Natural Resources Committee. Rep. Jim Saxton (R-N.J.) said he would like to add provisions to oversee coastal development.

The Coastal Zone Management Act was first passed in 1972 and has been amended eight times. It was last reauthorized in 1996.

Subcommittee Hears Panel on Highway and Transit Infrastructure
HEARINGS PREPARE FOR 2009 TRANSPORTATION AUTHORIZATION

Last week, the Highways and Transit Subcommittee of the House Transportation and Infrastructure Committee held a hearing with state and regional transportation officials on maintaining the nation's highway and transit infrastructure. With SAFETEA-LU set to expire in September 2009, the subcommittee has been holding regular hearings to uncover areas that need to be addressed in the next transportation authorization. It is also dealing with the more immediate problem of a looming multibillion-dollar shortfall in the federal highway account.

Recommendations from the panel included increasing funding from $43 billion in 2009 to at least $75 billion in 2015 just to restore the program's purchasing power to where it was 15 years ago. There also were recommendations for greater flexibility through fewer overall programs; increased flexibility among the remaining programs; and clearer, broader eligibility standards.

Panel members recommended creation of a new National Transportation Policy with incentives to increase state and local investment in public transportation. There was also general agreement on streamlining the federal grant approval process and retaining an 80 percent federal match ratio for all capital transit projects, including the New Starts program.

Linda Watson, CEO of the LYNX-Central Florida Regional Transportation Authority, told the subcommittee that people like dense development and walkable communities, and that funding for transit facilities could create incentives for smart growth planning and conscientious land use. Rep. James Oberstar (D-Minn.) asked the entire panel for ideas on meeting a national goal of having public transit account for 10 percent of all transportation.

This week, the full Transportation and Infrastructure Committee heard testimony from four members of Congress with pending legislation aimed at bolstering the nation's investment in infrastructure. Rep. Earl Blumenauer (D-Ore.) touted his proposal to establish a new infrastructure commission charged with developing a national infrastructure plan. Reps. Rosa DeLauro (D-Conn.) and Keith Ellison (D-Minn.) discussed their legislation aimed at creating a national infrastructure bank to make high priority investment based on performance standards. Lastly, Rep. Ken Calvert (R-Calif.) proposed a new fee for freight movement to build and improve port connections and facilities. The Senate Banking Committee has also scheduled hearings on infrastructure investment.

House Approves Amtrak Reauthorization
BILL PROVIDES $14.4 BILLION; TOUGH SENATE NEGOTIATIONS LIKELY

By a vote of 311-104, the House of Representatives approved a comprehensive reauthorization of Amtrak. The $14.4 billion Passenger Rail Investment and Improvement Act of 2008 (H.R. 6003) includes $4.2 billion authorization for capital grants, a $3 billion provision for operations, about $2.5 billion for states to finance new or improved intercity passenger service, and $1.75 billion over five years for grants to states and to Amtrak for high-speed rail corridors. The measure also requires states to adopt state rail plans.

The bill was the result of a bipartisan compromise. Republicans agreed to support substantially increased funding in exchange for new opportunities for private sector involvement in key rail corridors, particularly the highly trafficked northeast corridor between Washington, D.C., and Boston. The White House has threatened to veto the bill, which was approved in the House by a majority sufficient to override a veto.

The measure must be reconciled with a Senate reauthorization bill passed last October. The Senate bill provided $11.4 billion and does not include privatization provisions, but both measures provide funding over five years. Several key Senators have expressed strong opposition to any privatization effort.

House Hears Testimony on Green Communities Legislation
BILL TARGETS FEDERAL PROGRAMS, FINANCIAL INSTITUTIONS

Last week, the House Financial Services Committee held a hearing on broad legislation aimed at improving energy efficiency in buildings and federal housing programs and encouraging the development of green communities. The Green Resources for Energy Efficient Neighborhoods Act (H.R. 6078) was introduced by Rep. Ed Perlmutter (D-Colo.). The legislation is co-sponsored by Financial Services Committee Chairman Barney Frank (D-Mass.) and House Appropriations Subcommittee on Housing and Transportation Chairman John Olver (D-Mass.).

"This legislation proves that it is easy to be green," said Perlmutter. "This bill helps revitalize our economy by making energy efficiency practices more affordable, accessible, and achievable by consumers, businesses, and government entities."

The bill aims to help local governments with green building initiatives by creating a new residential energy efficient block grant program based on the same distribution formula as Community Development Block Grants (CDBG). The legislation would also require HUD to overhaul energy efficiency requirements for all federal housing programs from Section 8 to HOPE VI. Residential buildings constructed with federal support would have to meet more stringent energy standards. The bill also offers incentives for housing developers to work with landscapers to plant and care for trees and outlines the requirement of a landscaping plan for assisted housing.

A major focus of the legislation is encouraging Government Sponsored Enterprises (Fannie Mae and Freddie Mac) to expand and promote the use of location-efficient mortgages and energy-efficient mortgages. The legislation also amends the Community Reinvestment Act to allow financial institutions to consider energy efficiency improvements made by low-income and first-time buyers when assessing home values and loans. The aim, according to supporters, is to provide lower interest loans and other benefits to consumers who build, buy, or remodel homes or other buildings to improve energy efficiency.

With the backing of House leaders, the bill is expected to move forward later this summer.