NSSGA Washington Watch
October 4, 2005 Volume 5, Issue 32 

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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 In This Edition...

SHORT WEEK, LONG AGENDA FACES LAWMAKERS

Congress faces a workweek shortened by the Jewish holidays. Republicans in the House will try to get back on sure footing after Majority Leader Tom DeLay (R-Texas) was forced to step aside following two indictments handed down by Texas grand juries reviewing allegations of state campaign finance law violations. Majority Whip Roy Blunt (R-Mo.) has moved in to take DeLay's place as temporary Majority Leader.

The Senate, too, will attempt to get back to work after being diverted by an investigation into Majority Leader Bill Frist's (R-Tenn.) sale of stock in his family's hospital business from a blind trust shortly before it lost value. Frist is focused on passing the remaining FY '06 appropriations bills. The Senate must now also deal with its second Supreme Court confirmation hearing of the year with the president's nomination of White House Counsel Harriet Miers for the seat being vacated by Sandra Day O'Connor.

Congress gave itself some breathing room by passing a continuing funding resolution (CR) before the end of the current fiscal year on Sept. 30. The stopgap bill covers agencies and programs funded by fiscal 2006 appropriations bills that have not been enacted, including the Transportation-Treasury bill, thus preventing a partial government shutdown.

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CONTINUING RESOLUTION DELAYS SURFACE TRANSPORTATION SPENDING INCREASE

The CR passed last week by Congress will delay the substantial spending increases for surface transportation programs contained in SAFETEA-LU. The CR attempts to hold down spending of agencies whose appropriations for FY '06 are not yet enacted, but are passed by both chambers, to the lower of the House-passed version or the Senate-passed version. For the three bills that have only been passed in the House, including the FY '06 Transportation-Treasury bill, the continuing resolution clarifies that the lower of the FY '05 spending level or the spending level in the House-passed version of the FY '06 appropriations bill applies except that if the House bill eliminates a project or activity, the '05 funding level for that project or activity stays in effect until the Senate has an opportunity to agree or disagree with the House's decision. This will have the overall effect of postponing any spending increases set in motion by SAFETEA-LU for FY '06, as the lower FY '05 number will apply until Nov. 18, the expiration date of the current continuing resolution, or the Senate takes action and the president signs the 2006 Transportation-Treasury Appropriations bill into law.

At this time, there is no schedule for the Senate to consider the FY '06 Transportation-Treasury bill and it is uncertain if it will even see action on the Senate floor before Congress recesses for the year, perhaps being rolled into a year-end omnibus spending bill. Rumors abound of across the board reductions in non-defense, discretionary spending (including transportation) in FY '06 appropriations bills. We will continue to push for passage of the FY '06 spending bill to assure funding for highways at the SAFETEA-LU passed spending level for FY '06.

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HOUSE PASSES ESA REFORM BILL

Last week, the House of Representatives voted 229 to 193 in support of a bill to overhaul the 1973 Endangered Species Act (ESA). H.R. 3824, the Threatened and Endangered Species Recovery Act (TESRA), introduced by House Resources Committee Chairman Richard Pombo (R-Calif.) and Rep. Dennis Cardoza (D-Calif.), was cosponsored by 96 members of Congress from 30 states. TESRA fixes the long-standing problems of the Endangered Species Act by: (1) focusing on species recovery; (2) providing incentives; (3) increasing openness and accountability; (4) strengthening scientific standards; (5) creating bigger roles for state and local governments; (6) protecting private property owners; and (7) eliminating dysfunctional critical habitat designations.

NSSGA took an active role in building support for the legislation over the course of the year, working with Chairman Pombo to develop the legislation and assisting the Committee in the final hours to secure the needed votes. NSSGA is also a longstanding member of the National Endangered Species Act Reform Coalition (NESARC), the nation's oldest broad-based, national coalition dedicated solely to achieving improvements to the ESA. NSSGA sent multiple letters to Congress informing Members of Congress of the need to reform ESA and a Key Vote alert notice, urging them to vote in support of TESRA. (Read Key Vote Alert.) NSSGA also activated Aggregates in Action and many association members emailed or called their Representatives in support of the legislation.

The legislation now heads to the Senate Fisheries, Wildlife and Water Subcommittee where Chairman Lincoln Chafee (R-R.I.) is working on a companion version to the TESRA bill. Sen. Chafee expects to introduce his legislation early next year. Earlier this year, Chafee joined like-minded House and Senate colleagues at a press conference where they pledged to work in a bi-partisan and bi-cameral process to modernize the ESA.

NSSGA will continue to advocate for the reform of the ESA and report developments as they occur. (To read NSSGA's Policy Paper, click here)

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ENERGY MINING SCHOOLS FUNDING BILL WON'T BE INCLUDED IN NEW HOUSE ENERGY PACKAGE

House Resources Committee Chairman Richard Pombo (R-Calif.) has decided the energy bill approved by the Resources Committee last week will not be included as part of a larger GOP energy package that is expected to hit the House floor late this week. The bill included a provision allowing states to opt out of the current federal moratorium on oil and gas development offshore. Some of the revenues realized from this program would fund the Energy and Mineral Schools Reinvestment Act, which was also included in the Resources energy bill. These provisions would go to supporting historic mining schools, applied geology and geophysics programs, and to individuals for degrees in mining and petroleum engineering, petroleum/mining geology and geophysics and mineral economics.

Pombo decided to pull his panel's bill from consideration when 22 of 25 House members from Florida criticized provisions to lift the federal ban on offshore production of natural gas and allow an opt out of the federal ban on offshore oil production. The Resources Committee approved Pombo's opt out language but then passed an amendment by Reps. John Peterson (R-Pa.) and Neil Abercrombie (D-Hawaii) that replaced his language allowing states the right to opt out of the natural gas ban by lifting the ban altogether. The bill also included provisions to allow oil and natural gas drilling in the Alaska Arctic National Wildlife Refuge (ANWR). Pombo intends to pursue the ANWR language as part of budget reconciliation. He will continue to work with Florida members to address their concerns and may try to include both the opt out and mining school funding bill in budget reconciliation.

NSSGA supports the Energy and Mineral Schools Reinvestment Act and will continue to work with House Resources Committee staff and mining and petroleum interests to advance the measure.

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PRESIDENT'S TAX REFORM PANEL REPORT DELAYED

The Bush Administration announced that it had extended the deadline to Nov. 1 for its tax advisory panel to make its recommendations. The panel's original deadline had been moved from July 31 to Sept. 30 - now Nov. 1. The panel's recommendations are eagerly awaited and could form the basis for major tax reform legislation in the coming year.

To this point, action on the highway and energy bills, Social Security reform, judicial nominations, the Central American trade pact, and now Hurricane Katrina relief have focused the administration and Congress' attention away from the tax reform effort.

The tax panel has been considering a series of controversial ideas aimed at simplifying the tax system and promoting economic growth. They include proposals to incorporate a flat tax or a consumption tax, such as the value-added tax, into the U.S. tax structure. NSSGA will review the recommendations for their unique impact on construction aggregates.

The association has been following the deliberations of the Senate Finance Committee on reforms to the expensing and depreciation schedules and we will be watching for any opportunity to add value for our members in the recommendations of the president's tax advisory panel. The committee has also been reviewing the status of non-profit organizations including charities, hospitals, educational facilities, and associations.

House Ways and Means Committee Chairman Bill Thomas (R-Calif.) held a hearing on tax reform on June 8 and is waiting for the panel to release its recommendations to take legislative action. NSSGA expects to be an active participant in the tax reform debates that will ensue.

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GOVERNMENT AFFAIRS DIVISION TO HOST STRATEGY SESSION

The Government Affairs Division has scheduled a strategy session for Oct. 12, in Washington, D.C., at the Hyatt Regency on Capitol Hill. The session will run from 1 p.m. to 5 p.m. followed by dinner (location to be determined) and is open to all interested Association members.

The session is designed to review the surface transportation reauthorization process, but more importantly to strategize for the future, from the next surface transportation bill, to the other priority issues in which the Association must be involved.

This session is one of several that are being held in conjunction with other association events beginning Oct. 10, with the Environmental, Safety and Health Forum. Please note that due Congress' weeklong Columbus Day recess the week of Oct. 10, NSSGA's Oct. 11 Capitol Hill reception has been relocated from the Cannon Caucus Room to the Hyatt Regency Hotel in the exhibitors hall, Regency A, from 5:00 p.m.-6:30 p.m.

Please RSVP to Patricia Maeder regarding your attendance at the strategy session. Information materials will be sent out in advance for your review and consideration.

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LOOK FOR NSSGA ROCKPAC PRIOR APPROVAL FORMS AND NEW PAYROLL-DEDUCTION OPTION IN THE MAIL!

This week, NSSGA will be mailing our second prior approval mailing to all of our all member companies' official representatives (ORs) asking them either to grant prior approval for NSSGA to communicate with and solicit a company's executives and management for contributions to its political action committee, ROCKPAC, or provide updates to their current prior approval information to those who have not yet chosen to return their prior approval form to NSSGA, if they have not already done so. In no way does granting prior approval obligate you, your company or any of its employees to contribute. Your company's individual employees participation, however, ensures that NSSGA's voice will continue to be heard on Capitol Hill.

ROCKPAC is offering for the first time the ability to donate throughout the year via a payroll deduction plan. This option, just approved for use by the Federal Election Commission, will simplify the donation process by enabling employees of participating companies to break up their contributions into smaller amounts spread out over a year, if they so choose, rather than making them in one lump sum. Please be sure to check the payroll deduction box on the prior approval form if you wish to provide your employees with this option. If you need a new form or have additional questions about the prior approval requirement, please contact Jim Riley for more information. We extend our sincerest thanks to all of the ORs of NSSGA member companies who have already helped NSSGA comply.

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

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