NSSGA Washington Watch
February 22, 2005 Volume 5, Issue 5 

An Industry Update on the White House, Congress and Federal Agencies

Pamela J. Whitted, Vice President, Government Affairs
Jim Riley, Director, Government Affairs
John Boling, Director, Government Affairs
Joe Colaneri, Director, Government Affairs
Patricia Maeder, Division Coordinator

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www.nssga.org 
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 In This Edition...

CONGRESS RECESSES UNTIL FEBRUARY 28

The House and Senate will return to Washington on Feb. 28 after the weeklong Presidents' Day district work period. The recess is a great opportunity for you to meet in person with your members of Congress at home, whether it is in a local office or at a town meeting. Several issues of interest to the aggregates industry are moving through Congress and it is important to ask for the help of your lawmakers to spur Congress to act. The following articles provide updates on issues of importance to the aggregate's industry. If you would like additional information, you can access NSSGA's policy position papers under Government Affairs on the website or call the Government Affairs office for assistance.

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HIGHWAY BILL DEBATE CONTINUES

Congress must reauthorize the federal highway and public transportation programs by May 31, the end of the current extension of TEA 21, or risk delaying much needed transportation maintenance and improvements. The House has reintroduced TEA LU, H.R. 3., at a funding level of $284 billion over six years, FY 2004 to FY 2009. The administration's budget request for FY '06 increased its funding level by $28 billion to $284 billion, like the House bill. House Transportation and Infrastructure Committee Chairman Don Young (R-Alaska) plans to mark up TEA LU on Mar. 2, with full House consideration to follow the week of Mar. 7.

The Senate has not yet reintroduced legislation, but Senate Environment and Public Works Committee Chairman James Inhofe (R-Okla.) has supported the funding level of the reauthorization bill passed last year by the Senate, $318 billion. Senator Inhofe is under pressure from the White House and Senate Leadership not to bring a bill with funding higher than the president's budget level to the Senate floor. Senate markup of a reauthorization bill is uncertain.

On Feb. 17, highway interests were called to a meeting at the White House with Secretary of Transportation Norman Mineta and Deputy Chief of Staff Karl Rove, as well as other White House senior staff. The meeting was called to stress that the $284 billion funding level contained in the FY '06 budget is as high as the White House can go. They said that they want to get the reauthorization bill passed and urged meeting participants to help in this effort. While they are supportive of private activity bonds, the three conditions set down by the administration last year to avoid a veto were reiterated: no tax increases; no general fund transfer; and no tax-credit bonding. Mineta emphasized that there is not a glimmer of difference between the position of the White House on reauthorization and the Department of Transportation.

NSSGA continues its efforts to achieve passage of a six-year, robust reauthorization bill and is working to build public and gubernatorial support for reauthorization of at least $284 billion, more if possible without undue delays to enactment.

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MARK YOUR CALENDAR FOR THE APRIL 26-27 TCC FLY-IN

The Transportation Construction Coalition (TCC) is busy preparing for the spring TCC Fly-In, April 26-27, at the Hotel Washington. NSSGA is holding a Government Affairs Committee meeting from 11:00 a.m. to 12:30 p.m. on April 26 at the Hotel Washington before the start of the fly-in. Lunch will be served, followed by a one-hour meeting of the ROCKPAC Trustees beginning at 1:00 p.m.

The TCC General Session will begin at 2:30 p.m. on April 26, and a Congressional reception will follow at 6:00 p.m. The morning of April 27 will begin with a breakfast speaker followed by a day of lobbying on Capitol Hill. The fly-in comes at a critical time in TEA 21 reauthorization, with only one month remaining until the expiration of the May 31 extension. In addition to TEA 21 reauthorization, Congress will be trying to negotiate the funding levels for the 13 annual appropriations bills, including Transportation-Treasury appropriations.

Reserve your room now, as we are anticipating a busy year in Washington and have expanded the number of associations participating in the fly-in. Reservations may be made under the "TCC Fly-In" room block by calling (202) 638-5900 or (800) 424-9540. We are anticipating a high turnout to represent the industry. Additional fly-in details will be provided in the near future.

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HOUSE PANEL APPROVES BUDGETARY VIEWS AND ESTIMATES; SETS OVERSIGHT PLAN

On Feb. 16, the House Transportation and Infrastructure Committee unanimously voted in support of the Committee's Views and Estimates budget plan and a bipartisan oversight plan for the 109th Congress. The Views and Estimates plan will be forwarded to the House Budget Committee where it will be used to help draft a budget resolution. Follow the link to access complete versions of the Views and Estimates budget plan and the Oversight plan.

"The failure to properly invest in improving our highways and transit systems, airports, railways, ports and harbors, Coast Guard operations and assets, and our water infrastructure puts the nation's future at risk," Committee Chairman Don Young (R-Alaska) told committee members.

"The Oversight plan for this Congress is ambitious and provides for extensive oversight activities in each of the subcommittees. It addresses the problems of deteriorating infrastructure, improving the services provided by the agencies under our jurisdiction, and working with the Department of Homeland Security to ensure the preservation of the legacy missions of FEMA and the Coast Guard," Young said.

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BUSH SIGNS CLASS ACTION BILL SUPPORTED BY NSSGA

President Bush has signed into law S. 5, major tort reform legislation that was one of his top domestic priorities this year. The bill will expand federal court jurisdiction over large, multi-state class action lawsuit filed in state court. It targets what its congressional sponsors call "abuses of interstate class actions," including huge attorneys' fee awards at the expense of class members, state court judges ruling on issues of national import, coupon settlements of little value to class members, and so-called "forum shopping" by attorneys seeking favorable rulings by state court judges.

In a statement released by the White House upon House passage of the conference report Feb. 18, the president said, "I commend the House for passing a class action reform bill that will help protect people who are wrongfully harmed while reducing the frivolous lawsuits that clog our courts, hurt the economy, cost jobs, and burden American businesses. This bill is an important step forward in our efforts to reform the litigation system and to continue creating jobs and growing our economy."

NSSGA fully supported the class action reform effort and looks forward to the full implementation of this new law.

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HOUSE PROCEEDS WITH REORGANIZATION OF APPROPRIATIONS COMMITTEE

In a historic and bold move, the new chairman of the House Appropriations Committee, Rep. Jerry Lewis (R-Calif.) announced the reorganization of the committee in order to streamline and expedite the consideration of the annual appropriations bills. The proposal reorganizes the current 13 subcommittees, consolidating them down to 10. According to Lewis, the changes will help the committee get its bills approved quickly, leaving more time for oversight of the federal programs. So far the Senate has rejected the idea of reorganizing, calling into question the idea that the House reform will lead to any timesaving. Some in Washington are expecting a train wreck as the 13 Senate Subcommittee Chairmen attempt to figure out how to negotiate complex spending bills when there are only ten counterparts in the House. In a town where subtle slights can turn into ugly public fights, the reorganization is sure to start some fireworks.

Summary of Reorganization Proposal

The House Appropriations Committee will reorganize into 10 subcommittees chaired as follows. Please note the functions of the District of Columbia; Legislative; and Veterans, Housing and Independent Agencies are merged into other subcommittees.

  1. Agriculture chaired by Rep. Henry Bonilla (R-Texas)
  2. Defense chaired by Rep. C.W. Bill Young (R-Fla.)
  3. Energy and Water chaired by Rep. David Hobson (R-Ohio)
  4. Foreign Operations chaired by Rep. Jim Kolbe (R-Ariz.)
  5. Interior and Environment chaired by Rep. Charles Taylor (R-N.C.)
  6. Homeland Security chaired by Rep. Harold Rogers (R-Ky.)
  7. Labor, Health and Human Services and Education chaired by Rep. Ralph Regula (R-Ohio)
  8. Military Quality of Life and Veterans Affairs chaired by Rep. James Walsh (R-N.Y.)
  9. Science, State, Justice and Commerce chaired by Rep. Frank Wolf (R-Va.)
  10. Transportation, Treasury and Housing chaired by Rep. Joe Knollenberg (R-Mich.)

NSSGA has begun the process of briefing the new Transportation, Treasury and Housing Subcommittee Chairman Knollenberg and his staff educating them on the aggregate industry and our top issue.

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DEATH TAX REPEAL PERMANENCE ON AGENDA

Senators John Kyl (R-Ariz.) and Bill Nelson (D-Fla.), as well as Reps. Kenny Hulshof (R-Mo.) and Bud Cramer (D-Ala.), recently introduced companion bills in the Senate and the House to permanently repeal the death tax. Under current law, the death tax is being phased out until 2010, when it is fully repealed. Because of the Congressional budget rules, however, the repeal is effective for only one year. In 2011 the death tax is restored. The death tax hits small businesses particularly hard often requiring the sale of buildings, land and equipment needed to allow the businesses to continue to function. Chances for repeal of the death tax this year have improved with the addition of four new Republican senators. NSSGA will continue to work with like-minded interests for permanent repeal of the death tax.

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ASSOCIATION HEALTH PLAN LEGISLATION REINTRODUCED

Senator Olympia Snowe (R-Maine) was joined by a number of her colleagues as she determinedly reintroduced the Small Business Health Fairness Act of 2005, S. 406, which would foster the development of group purchases of health insurance through Association Health Plans (AHPs). Senators Jim Talent (R-Mo.), Kit Bond (R-Mo.), Robert Byrd (D-W.Va.), Elizabeth Dole (R-N.C.), John McCain (R-Ariz.), Kay Bailey Hutchison (R-Texas), David Vitter (R-La.) and Bob Martinez (R-Fla.) also cosponsored the bill.

"This legislation will provide revolutionary changes to the health insurance choices available for small businesses at no cost to taxpayers," said Snowe. "It is a starting point and a crucial element of a solution to the health care crisis facing our nation's employed but uninsured."

Under Snowe's bill, small businesses would be able to pool together, nationally, through trade associations, and either purchase their health insurance from a provider, or self-insure in the same way that large employers and unions currently do. Studies by the Small Business Administration, the General Accounting Office, and the Congressional Budget Office have all found that AHPs operate with between 13 percent and 30 percent lower administrative costs. NSSGA supports the creation of Association Health Plans and will report on the progress of the legislation.

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ANOTHER PANEL QUESTIONS ADMINISTRATION'S WATER PROGRAM CUTS

The House Transportation and Infrastructure Subcommittee on Water Resources and Environment gathered on Feb. 16 to outline their concerns with the administration's 2006 budget proposal for the Environmental Protection Agency (EPA) and the National Oceanic and Atmospheric Administration (NOAA). "The State Revolving Loan Fund (SRF) program is one of the most cost-effective programs in government," said Subcommittee chairman John J. Duncan, Jr. (R-Tenn.), at the hearing.

EPA's Clean Water SRF program is administered by states to provide capital to make wastewater infrastructure improvements around the country and to address other water quality needs. To date, Congress has provided nearly $22 billion in grants to help capitalize 51 Clean Water SRFs, with over $52 billion available for loans for wastewater infrastructure. For FY 2006, the president's budget is requesting $730 million to further capitalize these funds. This is $120 million less than the FY 2005 request and $361 million less than the FY 2005 enacted level of $1.091 billion.

Capital needs for wastewater are expected to be as much as $400 billion over the next 20 years. The current rate of capital investment of approximately $10 billion a year will leave an approximately $200 billion gap. To close the gap between current spending and needs, capital investment over the next 20 years will have to double. As an active member of the Clean Water Council (CWC), a coalition committed to ensuring a high quality of life through sound environmental infrastructure, NSSGA will continue to educate members about the importance of the SRF program and work to restore its funding.

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SPECTER ILLNESS MAY DELAY ASBESTOS BILL

Senator Arlen Specter's (R-Pa.) recently announced treatment for Hodgkin's disease may further delay the Senate Judiciary Committee's consideration of asbestos litigation reform. The bill was already mired in controversy although Chairman Specter had sought to accelerate the Senate's consideration and move the process forward. His illness, which he made public Feb. 17, can only delay the process, although he remains firmly committed and said that he plans to continue his Senate duties while undergoing chemotherapy.

NSSGA continues to work with House and Senate allies to protect our nonasbestiform operations and other production from unwarranted legislative, regulatory, or legal intrusion from this or other similar legislation.

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CLARIFICATION:

USGS PROPOSED BUDGET CUTS OVERSTATED
In an article published in Washington Watch on Feb. 8, NSSGA reported that proposed budget cuts would result in the elimination of USGS's Minerals Information Team. We overstated the proposed budgetary impact. Kate Johnson, USGS Program Coordinator, Mineral Resources Program, said:

According to Ms. Johnson:
We do not anticipate eliminating the entire Minerals Information Team, but would have to cease collection of minerals information outside the U.S. The guidance we have received requires that we focus on domestic production and consumption of mineral materials. At present we collect information in more than 180 countries outside the U.S.

NSSGA remains committed to accurate U.S. Minerals reporting and the government's financial support to that end.

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National Stone, Sand and Gravel Association
1605 King Street
Alexandria, VA 22314
800-342-1415 • 703-525-8788 • fax: 703-525-7782