Washington Watch
April 2008
You Still Have Time to Register for Washington Fly-In, But Please Do It ASAP
The State Chamber/AIA’s 49th Annual Washington Fly-In and Congressional Dinner is fast approaching. If you haven’t registered, you still have time but you need to do so quickly.
Participants can plan on an eventful night on Monday, April 28, at the Crystal Gateway Marriott Hotel in Arlington, Va. The evening begins with a 6 p.m. reception followed by the Congressional Dinner at 7 p.m., with both events featuring ample chances for productive contact with members of our congressional delegation and their staffs. Excellent networking opportunities will also be provided after dinner in the Hospitality Suite, once again hosted by the Arkansas Chamber of Commerce Executives.
Governor Mike Beebe has agreed to serve as master of ceremonies for the dinner again this year. We will also visit with our senators and representatives and their staffs at their offices and at district dinners, luncheons and breakfasts April 27-29. You may wish to stay all three days or choose to stay fewer days if it better fits your schedule.
Please note: Contact information for the breakfast with Congressman Mike Ross on Tuesday, April 29, was missing from the recently mailed flyer. If you are interested in that event, please call Michelle Rocha of The Alliance (Pine Bluff) at 870-535-0110 to make reservations or for more information.
Hotel reservations may be made directly by calling 703-920-3230 or 1-800-228-9290. You can also click here to access the hotel and contact information on our Web site calendar. The registration form is also on our Web site.
If you have any problems getting a room, please contact Deb Mathis as soon as possible at 501-210-4212 or dmathis@arkansasstatechamber.com. Changes in reservations or cancellations must be made through the State Chamber/AIA by contacting Deb.
States Attempt to Force EPA to Make Emissions Decision
The Washington Post reported on April 3 that representatives "from 18 states and several environmental groups have sued the Environmental Protection Agency (EPA)" in order "to force the Administration to determine whether greenhouse-gas emissions are endangering public health." The plaintiffs claimed that the EPA "is ignoring a year-old Supreme Court ruling that the federal government has legal authority under the Clean Air Act to control carbon dioxide emissions from vehicles," and "asked the U.S. Court of Appeals for the District of Columbia to compel" the agency to act within 60 days.
The New York Times notes, "The states and the federal government have long been at odds over regulation." Five years ago, the EPA "refused to set emission levels for heat-trapping gases because of what it called 'substantial scientific uncertainty' about their effects and the best way to deal with them." Notably, after the court's ruling last year, agency "administrator, Stephen L. Johnson, said repeatedly that" the EPA "would take the first step toward controlling emissions of heat-trapping gases like carbon dioxide before the end of 2007."
In the meantime, "a House panel voted unanimously to subpoena [EPA] greenhouse-gas documents – a decision that could set the stage for broad new regulations," according to the Wall Street Journal. Under last year's ruling, "if the EPA found that the greenhouse gas was a danger to the public," the agency would be required "to create regulations for CO2-emitting facilities across the economy, including refineries, power stations and energy-intensive manufacturing of paper, cement, steel and glass."
Consumer Product Safety Commission Uses Additional Funding to Increase Staff
On the front of its April 5 Business section, the Washington Post reported, "After decades of budget cuts left the agency ill-equipped to police a rising tide of imports, the Consumer Product Safety Commission (CPSC) has begun to recover."
Last year, Congress "gave the CPSC $17 million on top of its $63 million annual budget – the agency's biggest one-year cash infusion in more than 20 years." Though "there is consensus on the agency's immediate needs – more staff and better facilities – its spending priorities are a matter of debate."
Meanwhile, "Congressional leaders still must reconcile two product-safety bills that recently passed the House and Senate. Acting CPSC Chairman Nancy A. Nord told House appropriators last month that the agency will have a hard time meeting mandates in both bills without more money." Currently, however, "the agency's focus is on staffing. It started the year with just fewer than 400 employees, less than half what it had in 1980."
Farm Bill Update
Only a week remains until expiration of the current farm bill. Congress was forced on March 12 to extend the current law to April 18 to allow additional time for ongoing negotiations. Before an agreement can be reached, negotiators from the House of Representatives, Senate and the Administration must reach an agreement on where $10 billion in offsets will come from. Neither Speaker Pelosi nor President Bush supports another short-term extension.
The Arkansas Farm Bureau reports that Senate Agriculture Committee Chairman Tom Harkin said that he and House Agriculture Committee Chairman Collin Peterson have reached agreement on an overall farm bill budget framework. However, others involved are still haggling over the permanent disaster funding and have also formally objected to $1 billion in conservation program cuts to provide more money for the agricultural disaster fund.
While the final farm bill remains just out of grasp, the appointment of the House conference committee could be a sign that a deal is getting closer. At the first official meeting of the conference Thursday morning, the House presented a proposal that will spend $5.5 billion above the budget baseline and will include an offset for this additional $5.5 billion in spending. The House conferees voted unanimously in favor of the plan. The Senate, however, rejected the plan. No one from the Arkansas congressional delegation is on the House conference committee, but Senator Blanche Lincoln is a member of the Senate conference committee.
NAM-ACCF Study Sheds Light on Senate Climate Change Legislation
The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) recently released the results of a joint study assessing the potential economic impacts resulting from proposed climate change legislation sponsored by Senators Joe Lieberman (I-CT) and John Warner (R-VA), America’s Climate Security Act of 2007 (S. 2191). The Senate is expected to debate the legislation in June.
S. 2191 aims to reduce total U.S. greenhouse gas emissions with the goal of lowering emissions 63 percent below their 2005 levels by the year 2050. Calling for a cap-and-trade system, the bill would achieve these reductions through a system that would call for companies to limit their emissions, and then trade emissions rights with other companies.
Conducted by Science Applications International Corporation (SAIC), the independent study examines projected impacts on Gross Domestic Product (GDP) and Gross State Product, future energy costs, economic growth, employment, production, household income, the impact on low income earners and other measurements. The study includes a comprehensive national economic assessment, as well as separate and specific overviews of the impacts the legislation could have on all 50 U.S. states.
The study concluded that if S. 2191 were passed into law, by 2030, it could lead to employment losses nationally of up to 4 million jobs, electricity price increases of up to 129 percent, gasoline price increases of up to 145 percent and a loss of household income of up to $6,752 per year. To view the complete NAM-ACCF study, click here .
Well for H-1B Visas Dries Quickly
The rush by companies to apply for H-1B visas for next year has officially come to an end – one day after it began. After opening the application process at the end of last week, U.S. Citizenship and Immigration Services (USCIS) said Tuesday that it had received 150,000 applications by Monday afternoon for the 65,000 available foreign worker permits. As a result of the overwhelming number of applicants and the limited number of visas available, USCIS said it would no longer be accepting petitions. The National Association of Manufacturers continues to urge Congress to raise the cap on H-1B visas to ensure American manufacturers are able to fill skilled worker positions now vacant.
U.S. Chamber Praises Stimulus Bill
The U.S. Chamber of Commerce helped push through Congress a $168 billion economic stimulus package designed to spark small business growth and revive a struggling economy.
The Chamber was instrumental in the stimulus package negotiations from the start, insisting to the Administration and congressional leaders that expensing and deduction provisions for businesses are essential to boosting the sluggish economy. "Increased business investment is critical to an economic recovery, and this bill creates strong investment incentives," said Bruce Josten, Chamber executive vice president - government affairs.
The package includes $51 billion in benefits aimed at businesses. Specifically, it would allow American businesses that buy new equipment this year to deduct 50 percent of the cost of their investment in 2008. The remaining value of the investments would be depreciated over the life of the item beginning that year. The agreement also nearly doubles to $250,000 the Section 179 expensing limits for small businesses.
The Chamber also applauded provisions to spur consumer spending. Workers earning $75,000 or less will receive up to a $600 tax rebate. Married couples earning $150,000 or less will receive up to $1,200. Anyone qualifying for a check would receive an additional $300 for each child. Seniors, veterans with disabilities, and workers who paid little or no income tax in 2007 are also eligible for rebates. "These rebates will put money in workers' pockets, stimulating consumption and mitigating the effects of the slowing economy," Josten said.
The Chamber welcomed provisions to increase the size of mortgage loans that can be insured by the Federal Housing Administration and purchased by Fannie Mae and Freddie Mac. "These increases not only improve liquidity in the mortgage marketplace, but they also boost homebuyers' confidence, resulting in increased sales and economic activity," Josten said.
