News

House Approves Portion of Transportation Reauthorization- Senate Compromise Leave Way to Move Forward

The House and Senate have been deliberating their respective versions of the transportation reauthorization legislation this week but long lists of amendments in both Chambers have slowed down progress. As a result final action on both bills has been postponed until after the Present’s Day Congressional recess scheduled for next week. The House bill, HR 7, has been broken into three separate pieces that are each being considered independently which will then be recombined and voted on as one measure. Before adjourning for the recess, the House, by a vote of 237-187, approved the energy portion of HR 7. That portion allows for expanded oil and gas drilling in the Gulf of Mexico and in parts of Alaska’s Arctic National Wildlife Refuge and for shale oil production on public lands. It also would approve development of the Keystone XL oil pipeline. The revenue from the drilling leases, which the Congressional Budget Office has estimated at $4.3 billion over ten years, would be directed to the Highway Trust Fund. The measure was opposed by 21 Republicans, but supported by 21 Democrats. A second portion of HR 7 that provides an offset to allow for the revenue needed to pay for the bill’s funding levels has been deferred. That bill would provide an offset for $40 billion in revenue transferred from the general fund by altering federal worker pension contributions. Use of this offset was complicated this week when Congress approved an extension of unemployment benefits that also relies on changes to federal pensions to pay for the cost. Speaker John Boehner (R-Ohio) announced that this offset and the transportation and funding portions of the bill will be addressed following next week’s recess. Speaker Boehner indicated that allowing an opportunity for consideration of the nearly 260 amendments that have been offered will take more time than is available this week. In the Senate, a number of amendments unrelated to the bill slowed down consideration of its version of the legislation. A cloture vote was defeated today by a vote of 54-42 that would have limited debate and allow consideration of the underlying bill to proceed. However, soon after the vote Senate Majority Leader Harry Reid (D-Nev) said the issues that prevented the cloture motion from being approved have been worked out. Senate Finance Committee Chairman Max Baucus (D-Mont) also announced an agreement on a package of revenue enhancers necessary to fund the Senate bill. While the Finance Committee met last week and approved a package of revenue enhancers at that time there was not universal agreement and therefore additional negations were necessary. For more information, please contact Brian Deery at (703) 837-5319 or deeryb@agc.org.