Congress Faces End-Of-the-Year Legislative Pile Up

Congress returned this week from recess with only nine scheduled legislative work days left between now and the end of the year.  Democrats’ ambitious agenda to finish its priorities and must-pass legislation is hitting many speed bumps and has most of Washington taking bets on what will pass and when.  The Senate has resumed working on the National Defense Authorization Act (NDAA) but has been grappling over procedural votes while trying to reach an agreement on amendments. Meanwhile, the House Armed Services Committee is already pre-conferencing with its Senate counterpart in preparation of any issues that might need to be resolved so they can vote as soon as possible.

Negotiations among House and Senate leaders on a stopgap bill to keep the government funded past Dec. 3. came down to the wire this week. With less than a day before funding expired, the leaders agreed to extend stop-gap funding for 11 weeks, through  Feb. 18, 2022.  Republicans stood firm for a continuing resolution that would run to mid-February so that there is ample time to resolve differences on spending levels and policy riders in the annual FY 22 appropriations bills.

Also on the “to do” list is having to raise the debt limit around Dec. 15, according to Treasury Secretary Janet Yellen.  The House passed the $2.2 trillion “Build Back Better Act” (BBB) before Thanksgiving, and Democrats contend that they will proceed with passing the measure before lawmakers return home for the holidays.  This week the Senate will begin working with the Parliamentarian regarding the application of the Byrd rule, which precludes the inclusion of extraneous provisions in reconciliation measures, to the BBB.

 Bipartisan Infrastructure Bill (BIF) Passes

After nearly a year of high-stakes negotiations playing out in U.S. headlines, on Nov. 5, the House of Representatives passed the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act (IIJA, H.R. 3684), also known as the bipartisan infrastructure bill (BIF).  The bill is a key piece of President Joe Biden’s economic agenda under the larger “Build Back Better Plan”  and includes historic investment in projects to improve U.S. roads, bridges, ports, and over $55 billion for water infrastructure and restoring aging water pipelines.

House Democratic leaders had planned to vote on both the BIF and the nearly $2 trillion Build Back Better (BBB) Act (H.R. 5376) the same day, but friction between Democratic progressives and moderates led to a full day of bargaining and a compromise to vote for the BIF with a promise to take up the budget reconciliation resolution by Nov. 15.  Late in the evening of Nov. 5, the House passed the bill by a vote of 228-206, with six progressive Democrats still defying House Majority Speaker Nancy Pelosi (D-CA) and the President, voting against the bill.  Thirteen moderate Republicans voted in favor of the bill, pushing the BIF over the finish line.  President Joe Biden’s signed the measure into law on Nov. 15, during a signing ceremony with members of Congress, stakeholders, and other officials.

What’s in the Bill?

Funding provided in the final bill includes the single largest investment in water infrastructure and funding to improve U.S. recycling programs:

• $11.7 billion each for the Environmental Protection Agency’s (EPA) Drinking Water State Revolving Loan Fund (DWSRF) and the Clean Water State Revolving Fund (CWSRF), two programs that assist states and localities to build or improve their drinking water and wastewater treatment facilities. The bill requires about half the money provided to be distributed as grants or fully forgivable loans.
• $15 billion dedicated specifically for replacing drinking water lines that contain lead, especially in low-income areas and communities of color that are exposed to more lead pipes. This amount falls short of Biden’s recommended $45 billion with the aim of replacing 100 percent of the nation’s lead service lines. Democratic progressives and water advocacy groups argue that this amount, which was greatly reduced during negotiations, is only a portion of the $60 billion that is estimated to reach that goal.   The BBB Act would provide another $10 million more to address lead pipes if passed.
• $17 billion in essential funding to the Army Corps of Engineers to be used to address critical water infrastructure projects to protect homes from flooding, restore shorelines, and fight the impacts of climate change.
• Authorizes $250 million and appropriates $75 million for the EPA Water Infrastructure Finance and Innovation Act (WIFIA) which provides loans and loan guarantees to eligible water and wastewater infrastructure projects. $64 million of the appropriated $75 million would be for safety projects to maintain, update, and repair dams.
• $75 million to implement the bipartisan, bicameral RECYCLE Act first introduced by Sens. Rob Portman (R-OH) and Debbie Stabenow (D-MI). The measure is widely supported by the paper and plastics industries and would authorize a new $15 million/year for the five-year federal grant program through the EPA to help educate households and consumers about their residential and community recycling programs. It directs EPA to develop a toolkit to boost recycling participation and reduce contamination in cycling streams. It would also require the EPA to review and revise its Comprehensive Procurement Guidelines.

EPA Round-Up

The Environmental Protection Agency (EPA) and Administrator Michael Regan have had a busy month as the agency begins implementing many significant regulatory actions and strategies.  On Nov. 15, Regan started his “Journey to Justice” tour, traveling to Mississippi, Louisiana, and Texas, focusing on environmental justice (EJ) concerns in marginalized communities throughout the South.  Regan used the five-day tour to hear from residents, activists, and community leaders about the environmental impacts of pollution while touting the administration’s benefits and EJ-centered policies in the bipartisan infrastructure law and the Build Back Better agenda.

EPA Deputy Administrator Janet McCabe said EPA is already working hard to implement and quickly deliver the approximately $60 billion in water and other environmental funding passed in the new infrastructure law.   EPA Assistant Administrator for Water Radhika Fox says the agency is scaling up hiring agency staff and contracting support to deploy the increased water funding.  Fox explained to the press on Nov. 9 that the agency will funnel the legislation’s water funding through existing programs at EPA. It plans to announce state allotments of the SRF money “very soon” and will hold listening sessions with states and community leaders before developing an allocation formula in the coming months.

On Nov. 18, the EPA and the Army Corps of Engineers published a proposed rule with an interim definition of waters of the United States (WOTUS) aiming to provide “stable implementation” of the Clean Water Act (CWA). At the same time, the Biden administration says it is meeting with stakeholders seeking a longstanding “durable definition” that will avoid the need for future administration changes.  The proposed rule would re-establish the pre-2015 definition of WOTUS updated to reflect consideration of Supreme Court decisions. The agency is requesting written comments and will hold hearings in mid-January.

The EPA, on Nov. 15, released its National Recycling Strategy (NRS) to tackle the country’s recycling challenges with the goal for the U.S. to create a more resilient and circular economy that it says will be a cost-effective municipal solid waste recycling system. The NRS veers greatly from the draft strategy the Trump administration was developing. It focuses on environmental justice and climate change and considers more on the Government Accountability Office’s (GAO) recommendations to address disposal costs and the need for extended producer responsibility (EPR) policies. One of the NRS objectives will conduct a study reflecting environmental and social costs in product pricing.

The final strategy calls on boosting support for recyclability and recycling policies and programs, as well as standardizing measurement and increasing data collection through coordinated recycling definitions, measures, targets, and performance indicators.  EPA says the final strategy includes a commitment for the agency to create a new national goal to reduce the climate impacts from the production, consumption, use, and disposal of materials, which make up approximately 50 percent of global greenhouse gas emissions.