

		October 18, 2005	Volume 5, Issue 33
		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	LINKS www.nssga.org Action Center e-Digest
	In This Edition... BUDGET AND APPROPRIATIONS TOP POST-RECESS AGENDA SENATE CONSIDERS FY 2006 TRANSPORTATION TREASURY APPROPRIATIONS COURT OF APPEALS HEARS TULLOCH WETLANDS RULE ORAL ARGUMENT WETLANDS PETITIONS ACCEPTED FOR REVIEW BY SUPREME COURT NEPA TASK FORCE RECONSTITUTED HOUSE PANEL TO HOLD SERIES OF HEARINGS ON REBUILDING STORM RAVAGED GULF COAST TAX REFORM PANEL READIES REPORT NSSGA STRATEGIC PLANNING SESSION REINFORCES ISSUE PRIORITIES ROCKPAC TRUSTEES MEET TO PLAN LONG-TERM STRATEGIES FOR CONTINUED GROWTH
		BUDGET AND APPROPRIATIONS TOP POST-RECESS AGENDA Congress returned to work Oct. 17 to deal with a myriad of issues, foremost being budget reconciliation and appropriations. The House could take up by Oct. 20 an amendment to the budget resolution to increase planned cuts in expected mandatory spending over five years. The amendment would formally put in place House GOP leadership proposals to pay for the expected tens of billions in 2006 spending on hurricane recovery by increasing the proposed cuts from $35 billion to $50 billion. Due to a lack of unanimity, House GOP leaders have temporarily dropped plans to include across-the-board cuts to FY '06 discretionary spending as part of the budget amendment. The disagreement over across-the-board budget cuts illustrates the difficulty Republican House leaders will have in rounding up the needed votes for the budget resolution amendment. Across-the-board cuts might still be implemented during final spending negotiations, but as of this writing there still is internal disagreement over exactly what programs would be affected. Senate leaders have expressed no similar interest in revisiting the budget resolution to increase the $35 billion target. They believe that they can find budget savings similar to the House through the reconciliation process, an optional budget process Republicans plan to use to push through mandatory cuts. Also topping the agenda are eight appropriations bills, which have yet to be agreed to and sent to the president for signature. The House passed all 11 of its bills before the July 4 recess and is waiting for the Senate to finish its consideration so they can meet to reconcile differences. The Senate is considering the Transportation-Treasury bill this week. (See following article.) It should be noted that on Oct. 14, the Treasury Department issued news that the government posted a $318.6 billion deficit in the 2005 budget year ended Sept. 30, a large improvement from 2004's record $412.8 billion gap. Return to top SENATE CONSIDERS FY 2006 TRANSPORTATION TREASURY APPROPRIATIONS The Senate is poised to consider the FY 2006 Transportation-Treasury bill this week. It is the first appropriations bill to be considered since Congressional GOP leaders announced plans for increased budget reconciliation targets. Transportation interests are keeping a close eye on Senate action, concerned that Congress may use the bill to disproportionately rescind transportation spending for hurricane relief offsets. While the House bill tracks the $36.3 billion funding level for highways included in SAFETEA-LU, the Senate bill reported out of the Senate Appropriations Committee actually provides $40.2 billion for highways, or nearly $4 billion above the House. In the absence of a finalized highway-spending bill, transportation programs have been operating under a continuing resolution set to expire on Nov. 17. Highway programs continue to be funded at the FY '05 level, meaning there is no money yet to pay for SAFETEA-LU. NSSGA and its coalition partners are advocating quick action on the FY '06 bill and working for passage of the bill before expiration of the current continuing resolution. Return to top COURT OF APPEALS HEARS TULLOCH WETLANDS RULE ORAL ARGUMENT On Oct. 14, the U.S. Court of Appeals for the District of Columbia heard oral arguments from NSSGA and other affected industry groups in the latest iteration of the long debated Tulloch wetlands rule. Arguing the case on behalf of NSSGA, the America Road and Transportation Builders Association (ARTBA), and the Nationwide Public Projects Coaltion (NPPC), was Rafe Peterson of NSSGA member firm Holland & Knight, LLP, who challenged the Army Corps of Engineers position that incidental fallback of excavated material constitutes a discharge of dredged or fill material to navigable waters of the U.S. The so-called "Tulloch rule" involves a 1993 decision by the Corps of Engineers and EPA to expand the legal definition of "discharge of dredged material" in wetlands to include the re-deposition of material caused by earthmoving equipment incidental to land clearing and other excavation activities. NSSGA challenged the Tulloch rule from the beginning. Even though NSSGA won our appeal of a 1997 Tulloch court decision, in 2001 the Corps proposed a revised Tulloch rule with the same practical effects as the first rule. NSSGA, ARTBA and NPPC continued the legal battle, and on March 25, 2005, filed a brief with the United States Court of Appeals for the District of Columbia Circuit arguing once again that the Corps has exceeded its authority under the Clean Water Act (CWA) and that the CWA only regulates deposit of dredged or fill materials into waters of the U.S., not the excavation of that same material. A decision is not expected until early next year. Return to top WETLANDS PETITIONS ACCEPTED FOR REVIEW BY SUPREME COURT Five years after issuing its decision in Solid Waste Agency of Northern Cook County v. U.S. Army Corps of Engineers, the U.S. Supreme Court will revisit the issue of the government's authority to protect wetlands that are not adjacent to navigable waters. The court accepted two petitions seeking review of decisions by the Sixth Circuit Court of Appeals. The cases are Carabell v. U.S. Army Corps of Engineers and Rapanos v. U.S. In addition to presenting the Clean Water Act jurisdictional issue, both petitions also raised the question of the federal government's authority under the Commerce Clause to regulate intrastate waters. The Rapanos petition addresses the question of does extension of Clean Water Act jurisdiction to every intrastate wetland with any sort of hydrological connection to navigable waters, no matter how tenuous or remote the connection, exceed Congress' constitutional power to regulate commerce among the states? The petitions have been consolidated and one hour will be allotted for oral argument, which will take place sometime next year. NSSGA is currently considering whether to file an amicus curiae brief in this matter. Return to top NEPA TASK FORCE RECONSTITUTED Rep. Cathy McMorris (R-Wash.), chair of the Task Force on Improving the National Environmental Policy Act, announced she would build on earlier NEPA field hearings and offered a new task force charter to extend work past the original Oct. 5 end date. The new name will be the "Task Force on Updating the National Environmental Policy Act" and the extended itinerary includes holding two additional hearings and issuing a report of hard recommendations by Nov. 30. The task force held five hearings across the United States this year to review and make recommendations on improving the 35-year-old law. Witnesses at the hearings included local and state government officials, environmental activists, national Forest Service employees, ranchers, environmental attorneys and various resources industry representatives. NSSGA member companies testified at three of the field hearings. NSSGA has submitted comments to the task force with specific suggestions for actions that can be taken to improve the process. Even though bipartisan legislation to update and streamline NEPA has not yet been introduced, the strongest hearing record will assist the legislative drafters in producing the best legislative fix. Therefore, NSSGA urges you to submit comments for yourself or your company. As an organization that works in the best interest of its members, feel free to work from NSSGA's comments. Simply email your comments to: nepataskforce@mail.house.gov. For more information on the Task Force on Updating the National Environmental Policy Act, please visit: http://resourcescommittee.house.gov/nepataskforce.htm. Return to top HOUSE PANEL TO HOLD SERIES OF HEARINGS ON REBUILDING STORM RAVAGED GULF COAST House Subcommittee on Water Resources and Environment Chairman John J. Duncan, Jr., (R-Tenn.) announced three hearings to examine the effects of Hurricane Katrina and flood risks facing the nation. The Water Resources and Environment Subcommittee has jurisdiction over hurricane and flood damage reduction, navigation, and other water resources programs of the Army Corps of Engineers, including ecosystem restoration. These hearings will help shape the Congressional response to the massive devastation cause by recent hurricanes. The three hearings will be titled: "A Vision and Strategy for Rebuilding New Orleans," "Expert Views on Hurricane and Flood Protection and Water Resources Planning for a Rebuilt Gulf Coast," and the third "Reducing Hurricane and Flood Risk in the Nation." Return to top TAX REFORM PANEL READIES REPORT President Bush's tax reform task force is scheduled to issue its final report on Nov. 1. The report will contain recommendations for tax reform such as changes in the corporate income tax that could include a flat tax, a value-added tax, repeal of the alternative minimum tax (AMT) and other changes such as reform of asset depreciation schedules. There will be much to react to and an opening to use the recommendations to add value for NSSGA members. You may be certain of NSSGA's careful analysis of the recommendations and strong and vigorous advocacy of provisions that will help our members. Return to top NSSGA STRATEGIC PLANNING SESSION REINFORCES ISSUE PRIORITIES NSSGA's Government Affairs Division, led by Committee Chairman Mike Agee, Rogers Group Inc., and Vice Chairman Tom Halquist, Halquist Stone Co., Inc., held an Oct. 12 strategy session to review the process that led to passage of SAFETEA-LU and to review issue priorities for 2006. More than 40 individuals attended the session representing: aggregate producers, small and large; M&S members; Washington Representatives of NSSGA member companies; and State Aggregate Association Executives. The group assessed the pros and cons of the reauthorization process. Participants agreed the association must be proactive in building the mandate for reauthorization of SAFETEA-LU before fixing on any financing solutions. The Government Affairs Division will create a task force to focus on reauthorization including the message, media plan, and the coalitions necessary to make the case for reauthorization. Participants affirmed that transportation is a top advocacy priority of NSSGA, from implementation of SAFETEA-LU to the annual appropriations that fund the highway and aviation programs. The group also identified the ongoing occupational health and minerals definition issues as key, as well as permanent repeal of the death tax which unfairly double taxes small producers; defending the percentage depletion tax allowance; advocating Endangered Species Act reform, wetlands reform and water infrastructure issues as priorities. Participants agreed that Government Affairs strategy sessions should be held on a more regular basis. Thanks to all members who took time to participate in this session and share your ideas, experience and expertise. Please contact the Government Affairs Division with any questions. Return to top ROCKPAC TRUSTEES MEET TO PLAN LONG-TERM STRATEGIES FOR CONTINUED GROWTH The ROCKPAC Board of Trustees, led by Chairman Paul C. Mellott, Jr. and Vice Chairman John F. Steele, Jr., met on Oct. 11 near Washington, D.C. to map out plans for continued growth of the PAC with the goal in mind of reaching $1 million by the end of the 2010 election cycle. The Trustees engaged in a three-hour strategy session led by a facilitator with a background in trade association PACs. Among the ideas discussed were ways to further educate NSSGA members in keeping with FEC law about the importance of ROCKPAC in the political process and the association's advocacy effort; to better target this message to the variety of NSSGA members; and to enhance the major donor program in conjunction with association meetings. NSSGA staff is already working to implement these recommendations for the 2006 Mercedes Reception being held on Mar. 10 in conjunction with NSSGA's annual convention in Tampa, Fla. Return to top
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