National Affairs and Legislation Committee The Garden Club of America

112th Congress, 1st Session August 22, 2011 Update #5 FUNDING FOR ENVIRONMENTAL PROTECTION AT RISK: MONEY PROBLEMS AHEAD
H.R. 2584: FY2012 Interior/Environment Appropriations The Budget Control Act

Money, money, money:

Its always about the money! Congress focused on economic problems and financial woes all summer long as political leaders struggled to find a political bargain that would enable to federal government to continue financing the $14.5 trillion public debt. This debate is far from over, and environmental programs have been caught in its vortex. Two big things are going on, and both spell trouble for environmental protections. Most immediate is the Interior/Environment appropriations bill for the coming fiscal year, 2012. But looming on the near horizon like an ominous cloud is the Budget Control Act signed into law on August 2 to achieve major long term deficit reduction. Its enactment has effectively instituted a severe austerity regime for the next decade. How you can help: If you believe that enforcement of fundamental environmental protectionsclean air, clean water, preservation of open spaces and national parks, protection of endangered speciesshould be maintained, this is the time to share your thoughts with your representatives and senators, particularly those senators who serve on the Senate Interior/Environment Appropriations Subcommittee (listed below). Many of them will be at home this month, visiting fairs and picnics and holding public events. They doubtless will hear from angry constituents who do not share your views. Some legislators who previously supported strong environmental enforcement are feeling whipsawed by the current political climate. This makes it all the more important to speak up for your values and concerns. Hearing from even a handful of thoughtful, well-informed voters who support and value these programs and are deeply concerned about deep cuts could well give your legislators permission to do the right thing.
Democrats serving on the Interior/Environment Appropriations Subcommittee: Reed (RI), Feinstein (CA), Leahy (VT), Mikulski (MD), Kohl (WI), Johnson (SD), Nelson (NE), Tester (MT), Landrieu (LA). Republicans: Murkowski (AK), Alexander (TN), Cochran (MS), Collins (ME), Johnson (WI), Blunt (MO), Hoeven (ND).

H.R. 2584: House fights EPA and environmental regulations: As public opinion increasingly pits jobs and economic recovery against environmental regulations, many legislators believe it is good politics to oppose environmental enforcement. While the House, Senate and administration traded offers, tirades and insults over possible solutions to the politics of the debt ceiling, the House of Representatives amused itself with beating up the Interior/Environment Appropriations bill for FY 2012, H.R. 2584. The bill brought to the floor by the Appropriations Committee contained several dozen provisions to restrict environmental enforcement, but these were only the starting point. Throughout the last week of July, as the House used the appropriations bill as filler to occupy the moments when the debt ceiling debate was not front and center, more damaging amendments were proposed and a couple were accepted.

As soon as the massive Budget Control Act, along with a debt limit increase, was passed and signed into law on August 2, Congress promptly departed for the traditional August recess. The Interior/ Environment appropriations bill was left to be finished up in September. What happens next? Congress is scheduled to reconvene September 7. Fiscal year 2012 begins three weeks later on October 1. The dozen appropriations bills needed to fund government agencies next year have not been enacted. The House has not reported three bills and has not passed three others. The Senate has not moved 11 of the 12 annual spending bills out of committee. Expectations are that, following the pattern of recent years, the Senate will prepare separate appropriations bills but not bring them to the floor for debate. Instead, an omnibus bill wrapping up all the unfinished appropriations into a single package will emerge from House-Senate negotiations. This large bill will take a while to work out, so there most likely will be a series of so-called continuing resolutions,1 or CRs, before the final omnibus package is eventually adopted.

16 14 12
$ billions

EPA Discretionary Budget Authority (FY 2012 shows House reported level) 14.85

10.3 7.6 8.0 8.4 7.5 7.15

10 8 6 4 2 0

2000 2002 2004 2006 2008 2010 2012

Fiscal Year
Source: Office of Managem't and Budget, House Approp. Report

This strategy requires a modicum of consensus between the House and Senate. An omnibus bill that tilts too far toward House priorities and policy riders will not pass in the Senate, and vice-versa. Thus, several senators have confidently predicted that the Senate will not accept most of the policy riders added in the House. Sen. Murkowski, ranking Republican on the Interior/Environment Appropriations Subcommittee, anticipated that only a few select policy riders would be included in her committees bill. The debate thus far: Both the spending level and the policy riders in H.R. 2584 portend trouble. The budget authority for EPA is lower than any time since 1997, even without discounting inflation. Levels in the bill for the Interior Department, Parks, Endangered Species, and the Land and Water Conservation Fund are all at very low historic levels. The Fish and Wildlife Service appropriations are typical and illustrative of the pattern:
Fish and Wildlife Service Resource Management Construction Land Acquisition Cooperative Endangered Species Wildlife Refuge Fund Wetlands Conservation State & Tribal Grants FY 2011 Enacted $1,245 M $21 M $55 M $60 M $14 M $37 M $62 M FY 2012 Admistration Request $1,272 M $23M $140 M $100 M 0 $50 M $95M H.R. 2584 $1,099 M $12M $15 M $3 M $13 M $22M $22M

There is little probability that EPA appropriations can be restored to the $10 billion-plus level of the last two years much less the $14.8 billion of FY 2009 (see chart above). The Presidents budget requested slightly less than $9 billiona 10 percent reduction from last year. The Budget Control Act (BCA) imposes caps on total non-security discretionary spending for FY2012 and 2013 that would reduce overall spending level further and most likely would result in less money for Interior/Environment appropriations. And there is the additional threat of a BCA-generated across the board cut next year.
A continuing resolution extends funding for existing programs, projects and activities at current levels. No new starts are permitted under the terms of most CRs, so this is a less than satisfactory way to keep the government running.
1

House riders: When the bill left the Appropriations Committee, the White House issued a Statement of Administration Policy (SAP) outlining its many concerns and strongly opposing passage. Attacking what it called ideological and political provisions the statement concluded, If the President is presented with a bill that undermines ongoing conservation, public health, and environmental protection efforts through funding limits or restrictions, his senior advisors would recommend he veto the bill. The SAP listed three dozen specific concerns. Among these were the following:
EPA Operating Budget: At the funding level provided, EPA will be unable to implement its core mission of protecting human health and the environment. . . restoration of key ecosystems such as the Great Lakes and the Chesapeake Bay will be delayed. Land and Water Conservation Fund: The funding in the bill would . . . severely impair the ability of federal, state and local officials, as well as private landowners, to preserve and manage areas important to wildlife, recreationalists, and sports men and women. Greenhouse Gas (GHG) Programs: The reductions in funding for GHG programs and regulations severely limit actions the Administration could take under current law to permit, control and monitor greenhouse gases and would block EPAs efforts to reduce GHG emissions from vehicles and large stationary sources. Clean Air Permitting: . . . the bill effectively overrides federal and state-issued permits for emissions from industrial facilities that are very large emitters of GHG by stating that the Clean Air Acts requirement to obtain a permit has no legal effect and that no lawsuits may be brought against a facility due to uncontrolled GHG emissions. Light-Duty GHG Standards: . . .the bill undermines Executive Branch efforts to set standards that will save consumers money at the pump and reduce GHG emissions through increased vehicle fuel efficiency on model year 2017-2025 Light Duty Vehicles. Responsible Energy Development and Oil Spill Response: The level of resources in the bill would eliminate efforts to increase the frequency of environmental compliance inspections at oil facilities. . . [and] does not include emergency transfer authority necessary to improve the governments ability to prevent and respond to oil spills. Utility Maximum Achievable Control Technology (MACT)/Transport Rule: . . .the bill blocks EPA from implementing its utility MACT rule to control air toxics emissions, as well as the Cross-State Air Pollution Rule controlling interstate transport of nitrogen oxides and particulate matter emissions from power plants. Clean Water Act: . . . the bill would stop an important administration effort to provide clarity around which water bodies are covered by the Clean Water Act. (offered by Rep. Frelinghuysen, R-NJ) Smart Growth: The bill terminates funding for EPAs Smart Growth program, which contributes to efforts to assist communities in coordinating infrastructure investment and minimizing environmental impacts of development. Restrictions on Implementing the Endangered Species Act: Preventing FWS from implementing key provisions of the Endangered Species Act will only result in increased costs and delays in the future. Mountain Top Mining Reform: Preventing the Office of Surface Mining from developing or implementing the stream buffer zone rule could increase the risk of litigation and potentially delay sustainable coal mining. Mineral Withdrawal Prohibition: Prohibiting DOI from restricting new mining claims on approximately 1 million acres of federal lands near the Grand Canyon will reverse a temporary moratorium on new uranium and other claims. Reducing Emissions from Cement Facilities: The language would prevent common sense deployment of technology that has been around for decades that will improve public health by reducing emissions of pollutants, including known carcinogens such as dioxin, from cement facilities.

When this already-flawed and inadequately-funded bill reached the floor, opponents of environmental protections lined up to offer additional amendments. Environmental defenders fought back and on a few occasions, they prevailed. Bad amendments that failed: Rep. Lamborn (R-CO): Zero out land acquisition accounts of Bureau of Land Management, Fish and Wildlife Service, National Park Service and Forest Service. Failed on a voice vote. Rep. Blackburn (R-TN): Reduce the EPA State and Tribal Assistance Grants by $30 million. Failed 114-314, demonstrating the popularity of this large program that helps states finance wastewater and drinking water infrastructure.

Rep. Blackburn (R-TN)

Rep. Broun (R-GA): Decrease Forest Service state and private forestry by $20.8 million. Failed on a voice vote.

Good amendments that passed: Rep. Bass (R-NH): LWCFIncrease land acquisition accounts of the Bureau of Land Management by $1 million, and $4 million each for the Fish and Wildlife Service, National Parks Service, and Forest Service, offset by commensurate reductions in the Office of the Secretary of the Interior. Agreed to on a voice vote. Adding this $13 million to LWCF brought the total to a dismal $80 million, a far cry from last years $300 million or the $900 million proposed by the president. Rep. Dicks (D-WA): Strike language in the bill that would prevent the Fish and Wildlife Service from listing new endangered species or increasing protections for Rep. Bass (R-NH) already listed species under the Endangered Species Act. Agreed to on a 224-202 roll call. Thirty-seven Republicans voted for the amendment, 2 two Democrats opposed it (Peterson, MN and Cardoza, CA). The bill was pulled just as soon as the Budget Control Act/debt limit increase was passed. The House may take this bill up again in September, although Interior Appropriations Subcommittee Chair Simpson (R-ID) has signaled that it will most likely be rolled into the continuing resolution along with other unfinished bills. It is possible that there may be dozens more anti-environment and conservation amendments awaiting consideration in September. Ironically, the Republican managers are not certain they have enough votes to pass the bill. Many of their members say that cutting only $2 billion from Interior and EPA does not go far enough! Other appropriations: Several of the other 11 appropriations bills also affect programs of interest to conservation and environmental protection. The House Appropriations Subcommittee on Foreign Operations on July 27 reported a bill for the State Department and foreign aid that slashes the total by 18 percent below the current year and chops out millions of dollars for various climate change measures through the United Nations, World Bank and bilateral programs. It includes a $10 million reduction combined to the Intergovernmental Panel on Climate Change (IPCC) and the U.N. Framework Convention on Climate Change (UNFCCC). The House passed Agriculture appropriations, H.R. 2112, on June 16 on a party-line vote. It cuts $2.7 billion below the current year budget. EQIP, the Environmental Quality Incentives Program, would be cut by $350 million. The Wetlands Reserve Program and the Grasslands Reserve Program would be reduced by 64,200 acres and 96,000 acres, respectively. The Conservation Stewardship Program would sink to $171 million below the level mandated by the farm bill. The Biomass Crop Assistance Program would be zeroed out.

The Budget Control Act (BCA):

A decade of austerity is guaranteed by the new federal budget regime passed by Congress and signed by President Obama on August 2. The struggle over the continuing resolution last spring and the current debate over Interior/ EPA appropriations provide just a mild taste of what lies ahead. Federal spending is being dialed way back to levels not seen for quite a while. Dont look for any new starts or program expansions. The game in the future will be how to apportion cuts and reductions.

Bartlett, MD; Bass, NH; Biggert, IL; Bilbray, CA; Blackburn, TN; Brooks, AL; Buchanan, FL; Dent, PA; Dold, IL; Fitzpatrick, PA; Fortenberry, NE; Frelinghuysen, NJ; Gerlach, PA; Gibson, NY; Grimm, NY; Hanna, NY; Harris, MD; Hayworth, NY; Herrera-Beutler, WA; Johnson, IL; King, NY; Lance, NJ; LaTourette, OH; LoBiondo, NJ; Meehan, PA; Miller, MI; Petri, WI; Platts, PA; Reichert, WA; Runyan, NJ; Smith, NJ; Stearns, FL; Upton, MI; Whitfield, KY; Wittman, VA; Wolf, VA; Young, FL.

Discretionary caps: The BCA establishes caps on security and non-security discretionary spending for FY2012 and 2013. Thereafter, one combined cap would apply to all discretionary spending. These caps would reduce spending by about $750 billion over the next 10 years compared to an inflation-adjusted baseline. About 55% of the reductions would come from non-security accounts. The chart above shows recent levels and the caps for 2012 and 2013. Super committee: The BCA also established a super committee of 12 members of Congressthree Democrats and three Republicans from the House and Senate.3 The Super Committee is charged with finding an additional $1.5 trillion in deficit reduction through some combination of more discretionary cuts, Social Security and Medicare and other entitlement reductions and tax increases. The super committee must vote on its recommendations by November 23 and report them by December 2. Congress has until December 23 to approve the recommendations. This schedule brings a whole new dimension to the holiday season! Sequestration: If, by December 2 of this year, the super committee cannot agree to at least $1.2 trillion of cuts, or if Congress fails to approve the committees plan, or if the president successfully vetoes it, then a sequestration or automatic pro-rata across-the-board cut of up to $1.2 trillion over the next 10 years will be triggered. This sequester would occur in January, 2013.4 Half the cuts would come from non-defense programs, both mandatory (entitlement) and discretionary. Many safety-net mandatory programs are shielded from sequestration, but those subject to sequestration include farm price supports. Under a full $1.2 billion sequester, about $38 million in discretionary non-defense cuts would occur in 2013. Since appropriations for FY 20142021 would not have been enacted yet, the sequester would reduce the overall discretionary caps commensurately to a level estimated to be approximately 9% below todays current spending levels. When the sequester mechanism was first added to the Congressional Budget Act back in the 1980s, it was designed to be too awful ever to be used. Wrong! It actually has been employed several times, and there is reason to think that it might happen again in 2013. The politics of adopting a further $1.2 to $1.5 trillion in deficit reduction are so very difficult that it is quite possible that Congress will fail. Thus, the threat of a BCA sequester is very real. Looking ahead at the grim budget reality and resource constraints, EPA Administrator Jackson met in July with about 50 senior regional officials and top headquarters staff to begin planning for how to maintain programs and services that are essential to public health and environmental protection. Lower priority programs will likely end up on the chopping block.
How to contact your legislators:
To send email to your representative, go to https://writerep.house.gov/writerep/welcome.shtml. To send e-mail to your senator, go to http://www.senate.gov/general/contact_information/senators_cfm.cfm and scroll to the senators name. There you will see a web form address in red type. Click on that address and follow the directions for sending e-mail. To telephone any legislator, call the Capitol switchboard: 202-224-3121. Ask for your senator's or representative's office. When the phone is answered, say that you want to leave a message about an issue. A very young aide will take the message or send you to the legislators voice mail. This seems impersonal, but is nevertheless effectivelegislators keep track of how many calls come in on different issues and the direction in which sentiment is running. Even a relatively small number of calls are enough to warrant serious consideration of the view expressed.

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NAL updates serve in an advisory capacity, based on committee research. Individual clubs and members may act on any issue as they choose. Editor: Martha Phillips (mhphillips@optonline.net). All e-mails and faxes are sent from GCA Headquarters. To unsubscribe: Contact Mary Jane at GCA Headquarters, 212-753-8287, or maryjane@gcamerica.org

Senators Murray (D-WA), Chair, Baucus (D-MT), Kerry (D-MA), Kyl (R-AZ), Portman (R-OH), and Toomey (R-PA), and Reps. Camp (R-MI), Hensarling (R-TX), Upton (R-MI), Becerra (D-CA), Clyburn (D-SC), and Van Hollen (D-MD). 4 If less than $1.2 trillion in cuts were enacted, the sequester would be for the difference between that level and $1.2 trillion.