Policy Updates and Issue News – December 2015
Congress Launches End-Of-Year Dash
The more gridlocked Congress becomes, the more predictable lawmakers are. Major issues languish in committee or in the House or Senate for months and months. The federal government spending for FY ‘16 began October 1 with temporary extensions of existing FY’15 authorities. There has been no budget authority or spending allocation for FY m’16 in place. Agreement between the House and Senate or between Democrats and Republicans proved elusive all summer and fall. Then time runs out. The nation edges close to crisis mode. Short term extensions of authorization and funding are passed, then extended and extended again. All of a sudden it’s Thanksgiving and short term extenders of all kinds start expiring. A full year’s workload has piled up for December. If Congress doesn’t get a move on, there’ll be no Santa Clause for constituents back home. Reconciling the federal budget authorizations between the Senate and House is a priority. There’s no time now to pass all twelve appropriations bills (that dole out the federal funds) so a omnibus spending package becomes both a vehicle for must-pass legislation and a “Christmas tree” on which to hang various legislation that’s been bottled up somewhere. If Congress fails to pass an omnibus bill or if the President vetoes it, the federal government faces a shutdown again.
Several politically hot policy issues could be folded into an omnibus package as the December debate on Capitol Hill draws to a close. Among these are Syrian refugee resettlement, federal funding for Planned Parenthood, tax extenders, GMO labeling, child nutrition programs, Country of Origin Labeling (COOL), Commodity Futures Trading Commission (CFTC) reauthorization, riders blocking funding for the Waters of the United States (WOTUS ) rule, revising the current Visa Waiver Program, revising or repealing ObamaCare and more. To prevent a government shutdown sparked by a presidential veto of the omnibus with controversial “Christmas tree” provisions attached, Congress could pass a series of controversial stand-alone bills to send individually to the White House. As an example, the Senate and House are currently working on major revisions to ObamaCare and a plan to end taxpayer funding for Planned Parenthood that can go forward individually or be folded into the omnibus package.
Status of Specific Omnibus-Targeted Policy Issues
Waters of the U.S. (WOTUS)
The WOTUS rider, which enjoys significant bipartisan support, would block implementation of the rule even if the court stays were lifted. Once enacted, the WOTUS provision could be extended beyond fiscal 2016. Inclusion of this rider seems a sure bet, but President Obama is pushing back hard to save WOTUS in omnibus negotiations.
GMO Labeling
A proposal to create a voluntary, USDA verified, GMO-Free labeling program has passed the House but is still pending in the Senate. Senator Stabenow of Michigan, the Senate Agriculture Committee’s top Democrat, has been working on a compromise plan that would preempt state GMO labeling laws while requiring electronic disclosure of GMO ingredients. During this process, the food industry launched a smartphone –based SmartLabel system to allow consumers to find GMO information on the web through phone-based QR code on package labels. Legislation under development would require USDA to decide what biotech breeding methods would make a product genetically engineered. However, negotiations appear to have broken down in the Senate and several senators now say GMO labeling legislation is dead for the year.
On related topics, the Food and Drug Administration (FDA) gave approval for domestic production of bioengineered salmon that grow twice as fast as salmon in the wild. Also, UDSA’s Biotechnology Regulatory Services is planning an overhaul to the way it regulates biotechnology. A proposed rule is slated to be available to the public by August.
Country of Origin Labeling
The U.S. is nervously awaiting the World Trade Organization (WTO) announcement by December 7 regarding the amount of retaliatory tariffs Mexico and Canada can impose on U.S. goods in the country-of-origin trade dispute. Actual tariffs could be in place by December 18. The U.S. has floated a voluntary born and raised in the USA label which Canada and Mexico have rejected. If the WTO-announced tariffs are high ($3 billion), Congress could, 1) create a compromise label acceptable to Canada and Mexico, or 2) repeal COOL in the omnibus package. If the announced tariffs are low ($500 million), or if Congress doesn’t act, tariffs could become an eminent reality.
Tax Extenders
End- of-the-year, last-minute renewal of expired tax breaks has become the norm for Congress. The list includes expanded Section 179 business expensing allowance, the 50-percent bonus depreciation provision, tax subsidies on biodiesel and wind power, Earned Income Tax Credit for low-income workers, Child Tax Credit, repeal or revision of the so-called “Cadillac Tax” on high-value employer-sponsored healthcare plans and the medical device tax. Extenders are considered must-pass priorities to be included in the omnibus.
Actions on Additional Policy Issues
Highway Bill
Solid bipartisan support for longer-term highway and infrastructure funding has resulted in a bill’s passage through both the House and Senate and a Senate-House conference committee agreement. The five-year $305 billion bill breezed through final House and Senate passage and is on its way to the President’s desk where he is expected to sign it into law. The legislation includes a so-called “bulk milk provision” that allows states to issue bulk haulers permits that classify milk a “non-divisible load” between farms and processing plants thereby exempting milk haulers from the requirement to offload a portion of their load to comply with state truck weight limits. The bill will be financed by a combination of import taxes, selling oil from the strategic petroleum reserve and withdrawals from the general fund. In an interesting twist, Congress used the highway bill to reverse a $3 billion cut to crop insurance enacted earlier in a budget agreement. The $3 billion will be offset through a Federal Reserve dividend cut to big banks.
Renewable Fuel Standards
The Environmental Protection Agency (EPA) finally announced its renewal fuel volume obligations for 2016. The target is 18.11 billion gallons, with the potential for approximately 14.5 gallons coming from corn ethanol and the remaining 3.61 billion gallons from advanced biofuels. These targets are significantly above the 17.4 billion gallons initially proposed earlier this year but far below the 22.3 billion gallons set by Congress in 2007 legislation. Mixed reactions have come from the renewable fuel industry, corn farmers and the oil industry.
Federal Aviation Administration (FAA) Task Force Proposes Drone Registration
Recommendations from a FAA task force would require drones weighing more than a half pound to contain an identifying number that can be traced back to an owner. The proliferation of drones has become a safety concern for pilots who share air space with novice drone operators.
Stay Tuned
Congress hopes to adjourn the first session of the 114th Congress on December 18. That’s just two weeks from now with a year’s worth of work to do. Watch for long nights and weekend work on Capitol Hill that could close in on Christmas.
Questions and comments regarding the National Grange Policy Updates and News can be directed to Burton Eller, Legislative Director at beller@national grange.org (202) 628-3507 extension 114.
