NWC FEDERAL SPOTLIGHT

February 7, 2022, Edition

Good afternoon NWC members,

Below are a few updates about what is going on in DC and within NWC. Please note that the Water Resources and the Environment Subcommittee (House Transportation and Infrastructure Committee) is holding its second Water Resources Development Act hearing tomorrow. Additionally, NWC filed our comments for the proposed rule to change the “Waters of the U.S.” definition in the Clean Water Act. There is still time to file comments. Please read below for more information on both items. Have a wonderful week!

 CAPITOL HILL HAPPENINGS

Congress is in this week. Last week Congress returned from its MLK recess to a growing workload. The President’s Build Back Better package remains a top-tier issue for Democrats, although its fate seems uncertain. Then there is the pending February 18 deadline to advert of federal government shutdown just as the Senate is turning its attention to confirming Biden nominees, as well as a new Supreme Court Justice. This week the House may take up a short-term Continuing Resolutions bill to continue to fund the government past February 18, before the House leaves town for two weeks.

Build Back Better. Late last year, the U.S. House of Representatives passed President Biden’s $2.4 trillion Build Back Better (BBB) package. However, the bill stalled in the Senate before the holidays after Senator Joe Manchin (D-WV) indicated that he would not support it in its current form. As a result, Democrats are assessing whether they should downsize the current BBB package—which includes numerous Democratic priorities—or attempt to move provisions in smaller chunks. Meanwhile, progressives are putting pressure on their Democratic leaders to hold a BBB vote no later than March 1. However, House Speaker Nancy Pelosi has acknowledged that Democrats currently do not have the votes to pass BBB saying, “we will pass the bill when we have the votes to pass the bill.”

SHORT TERM PROGNOSIS FOR SENATE’S 50-50 SPLIT. Not only do Democrats have disagreement within their own party about how to move BBB, but they also now have an added complication. Earlier last week, it was announced that Senator Ben Ray Lujan (D-NM) suffered a stroke. While he is expected to make a full recovery and return in 4-6 weeks, it highlights the challenge that the Democrats face in a 50-50 Senate where every vote counts. With Lujan out, the Democrats will have 49 to the Republicans 50, which complicates their ability to move BBB, let alone any Biden nominations that need confirmed. Speaking of nominations, President Biden is expected to nominate Supreme Court Justice Stephen Beyers replacement at the end of this month, with a potential Senate floor confirmation vote in March.

FY2022 APPROPRIATIONS.  Negotiations between Democrats and Republicans are “ongoing” on funding talks for FY2022 appropriations. FY2021 ended on September 30, 2021, but since none of the 12 appropriations bills were signed into law by then Congress had to pass several continuing resolutions (CRs) to keep the federal government open. The current CR is slated to end on February 18. To date, there is no deal. The holdup? There is no agreement on top-line spending numbers. The Democrats want at least 13 percent dedicated to domestic spending while keeping defense spending at a five percent increase. Republicans are saying they want more of a balance between defense and domestic spending. Additionally,  there are ongoing disagreements about which riders (policy amendments) should make it into the final omnibus bill. The added complication? Last year’s enacted Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) contained approximately $1.2 trillion in spending across 250 existing and new programs in about a dozen federal agencies is funded in several different ways across different accounts. Some accounts allow immediate spending, others require annual appropriations. One highlighted example is the Federal Highway Administration who has $52.5 billion to spend on highway projects in FY2022. But because the federal government is currently operating under a CR, they are only authorized to spend a little less than $20 billion. If lawmakers do not reach agreement by February 18, the federal government will shut down, unless Congress can pass either an omnibus package or another CR to keep the federal government open at last year’s fiscal numbers. On Sunday, House Majority Leader Steny Hoyer (D-Md.) indicated that the House will likely vote this week on a short-term CR to give appropriators more time. At this point, there is no indication on the length of time the CR will cover.

WORK ON WRDA 2022 CONTINUES/HOUSE HEARING THIS WEEK. Both the House and Senate have kicked off the WRDA 2022 process. Last month, both the House and Senate held WRDA-related hearings on the same day with Mr. Michael Connor, Assistant Secretary of the Army (Civil Works) and Lieutenant General Scott A. Spellmon, the commanding general of USACE. Both discussed the administration’s priorities for WRDA 2022 which includes helping disadvantaged communities, improving infrastructure and USACE effectiveness and incorporating natural and nature-based features into infrastructure projects. Spellmon highlighted 14 signed Chief’s Reports and indicated that another 14 could be signed for WRDA 2022 bringing the total to 28.

On Friday, the House Transportation and Infrastructure Committee (T&I) announced a hearing on “Proposals for a Water Resources Development Act of 2022: Stakeholder Priorities” on Tuesday, February 8, 2022, at 11am ET. During this hearing, the Subcommittee on Water Resources and Environment will hear from state and local officials, tribal grounds and other stakeholders on WRDA 2022 priorities. For more information, click here.

Meanwhile, the Senate is currently drafting their WRDA bill based on Senator submissions from late last year. According to Senate Environment and Public Works Committee staff, both the majority and minority leaders have made tremendous strides on negotiating the package. The first bipartisan agreement focused on the scope of the package which will be narrowly focused on USACE studies, projects and policy changes only. Additionally, both sides agreed to no regulatory reform language in the bill. EPW tentatively plans to hold an USACE/stakeholder hearing on the draft bill at the end of April,  mark up the bill the first week in May, and potential floor action in the May/June time frame.

For those of you who follow state revolving fund issues, EPW will be holding a Clean Water State Revolving Fund hearing at the beginning of April which is completely bipartisan. They are jointly choosing witnesses who can speak more from the technical rather than political standpoint on the history of the Clean Water SRF and how the formula works.

FY2023 Maritime Administration (MARAD) Reauthorization. The U.S. Senate Committee on Commerce is starting to draft its FY2023 MARAD reauthorization bill. According to sources, the committee will use the Maritime Administration Reauthorization Act of 2022 (S. 3270) as a starting point.

Capitol Hill hearings of interest:

  • HEARING. Justice, Equity, Diversity, and Inclusion in Environmental Policymaking: The Role of Environmental Organizations and Grantmaking Foundations (Tuesday, February 8, 2022, at 10am ET) before the House Committee on Natural Resources. For more information, click here.
  • HEARING. A Hearing to Review Farm Policy with Undersecretary Robert Bonnie (Tuesday, February 8, 2022, at 10am ET) before the House Committee on Agriculture’s General Farm Commodities and Risk Management Subcommittee. For more information, click here.
  • HEARING. Proposals for a Water Resources Development Act of 2022: Stakeholder Priorities (Tuesday, February 8, 2022, at 11am ET) before the House Committee on Transportation and Infrastructure’s Water Resources and Environment Subcommittee. The committee has seven witnesses scheduled to testify including a NWC member. For more information, click here.

FEDERAL AGENCY CORNER

EPA/USACE.  REMINDER TO SUBMIT COMMENTS ON PROPOSED RULE TO RE-ESTABLISH PRE-2015 WOTUS RULE/NWC LETTERS (Comments due February 7, 2022). On November 18, the U.S. Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (Army Corps) announced a pre-proposal of a 290-page proposed rule to re-establish the pre-2015 definition of “Waters of the United States” (WOTUS). While the administration says this is part one of a two-step process to redefine WOTUS, the news that the Supreme Court plans to take up Sackett v. United States to determine the legal underpinning of WOTUS, now puts part two of this rulemaking in jeopardy. Late last month, NWC, as well as other groups, asked the Agencies to extend the public comment period for the proposed rule but the request was denied. On Feb. 7, NWC submitted robust comments to the Agencies that detailed our concerns with the proposed WOTUS rule. To read NWC’s comments, click here.

USACE. VIRTUAL ENGAGEMENT OPPORTUNITY DURING NATIONAL ENGINEERING WEEK (FEB. 21-25, 2022). In 2022, February 21 – 25 is National Engineering Week. During this week, all levels of the Corps will be showcasing unique programs, projects and tools that make us a world-class engineering organization. USACE Headquarters will be conducting two external partner sessions (below). Questions about these events can be directed to the team at cw-infrastructure-team@usace.army.mil.

  • Infrastructure Investment & Jobs Act and Disaster Relief Appropriations Act 2022 (Tuesday, February 22, 2022, at 2:00pm ET). During this session, Ms. Stacey Brown, Chief, Programs Integration Division and her team will provide a summary of the recently completed spend plans and take questions. To join the webinar on Feb. 22, click here (Meeting number: 2763 127 6863/Password: i42PJdCre3@). To listen via phone, call 1-844-800-2712 and enter access code: 276 312 76863 when prompted.
  • “Did you know USACE does…” series (Thursday, February 24, 2022, at 2:00pm ET). This session allows participants to learn more about the Corps Continuing Authorities Program, Environmental Infrastructure, Floodplain Management Services and Planning Assistance to States aimed at educating others about our lesser-known authorities and programs that can provide huge benefits to small communities. The National Program Managers will be presenting each of these programs and will be available to answer questions during the virtual engagement. To join the webinar, click here (Meeting number: 2762 156 0015/Password: ndCcB7ZX*53). To listen via phone, call: 1-844-800-2712 and enter access code: 276 215 60015 when prompted.

USACE. NOVEMBER 2021 PARTNER LISTENING SESSION SUMMARY. This past November 2021, the Revolutionize USACE Civil Works Team hosted a virtual partner listening session. The purpose of the meeting was to provide over 200 stakeholders with an update on how USACE has been working to implement the Administration’s priorities, enhance partnerships and engagements, and continue to make revolutionary change across USACE.  Click HERE for a summary of the session.

USCG/FINAL RULE. Operational Risk Assessments for Waterfront Facilities Handling Liquefied Natural Gas as Fuel, and Updates to Industry Standards. On February 2, 2022, the U.S. Coast Guard published in the Federal Register a final rule on “Operational Risk Assessments for Waterfront Facilities Handling Liquified Nature Gas as Fuel, and Updates to Industry Standards.” Under the rule, water facilities handling liquified natural gas are to conduct an operational risk assessment instead of a waterways suitability assessment. The final rule is effective March 4, 2022. To read the updated rule, click here.

NWC CAUCUSES

NWC CAUCUS MEETING. NWC WATER SUPPLY CAUCUS MEETING (Friday, February 18 at 2pm ET). Please note that the Water Supply Caucus has a new Chair (Andrew Morris, Natural Resources Counsel, Atlanta Regional Commission) and Vice Chair (Vincent Gin, Water Supply Division, Santa Clara Valley Water District). We thank Tom Ray (current NWC chair) for serving as caucus chair last year!

NWC POLICY MEETING. NWC Legislative Policy Committee meeting (Thursday, March 3 at 4pm ET). NWC’s Legislative Policy Committee (LPC) serves as the primary advisor on NWC federal policy positions and decisions. Comprised of a broad scope of NWC membership, LPC is a consensus-based committee that is tasked with studying issues, recommending new federal policy positions, and drafting and signing off on NWC letters. LPC meets face-to-face twice a year at NWC’s Legislative Summit and Annual Meeting and holds monthly video calls on the first Thursday of the month. LPC is open to all interested NWC members. If interested in serving on LPC, please reach out to Julie Ufner, NWC President.

NWC CAUCUS MEETING. QUARTERLY NAVIGATION CAUCUS MEETING (Tuesday, April 12 at 2pm ET). Please note that the Navigation Caucus has a new Chair (Sean Duffy, Executive Director, Big River Coalition) and Vice Chair (Will Fediw, Vice President of Industry and Government Affairs, Virginia Maritime Association). We thank Dede Smith (IRPT) and Andrew Sinclair (The Port of Virginia) for serving as Chair and Vice Chair respectively last year!

If you are interested in serving on a caucus, please let Julie Ufner, NWC staff, know.