January 7, 2008

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President Signs Omnibus Funding Legislation VETO THREAT SHRINKS FUNDING FOR DOMESTIC PROGRAMS After months of debate and veto threats, President Bush signed compromise omnibus spending legislation that funds virtually all government programs and agencies for the balance of FY 2008. The compromise package came after a series of failed attempts to overcome White House opposition to increased domestic spending. The Bush administration threatened to veto any package that exceeded $933 billion, which is $23 billion less than what Democrats had hoped to provide. The President previously vetoed legislation for health, education, and social service spending that exceeded requested levels. Efforts to override the veto failed. Democrats hoped to reach a compromise by conceding to an $11 billion spending reduction, but that package was abandoned when it became clear that there was little or no support from congressional Republicans and the White House. The final omnibus met the President's spending target but included some additional funding for veteran assistance and emergency spending above the $933 billion cap. To reach the lower funding level, funding for a variety of key planning programs — including Community Development Block Grants — was reduced from levels provided in previously approved appropriations bills. Transit funding also came in lower than levels called for in SAFETEA-LU. The omnibus maintains language from earlier bills that prohibits the Federal Transit Administration from implementing new rules for the New Starts and Small Starts programs. The bill also prohibits proposed cuts in the EPA Smart Growth Office.

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Compromise Energy Bill Approved CAFE STANDARDS RISE TO 35 MPG At the close of 2007, Congress approved and President Bush signed a comprehensive energy bill that includes the first increase in auto mileage standards in more than 30 years. The increase in CAFE standards was included as part of a broad energy bill compromise. In addition to the auto mileage standards the bill addresses biofuels, conservation measures, and building efficiency. The bipartisan approval came only after Senate Democrats dropped House-approved tax provisions that would have increased incentives for energy efficiency by repealing tax breaks for oil and gas companies. The Senate also gave ground on a requirement that utilities derive 15 percent of their power from renewable sources. These provisions faced Republican filibusters and a White House veto threat. Key provisions include: An increase in corporate average fuel economy (CAFE) standards for cars and SUVs to an average of 35 miles per gallon by 2020. A requirement to increase use of ethanol and other renewable fuels to 36 billion gallons of by 2022, a roughly five-fold expansion of the current 2012 mandate. Twenty-one million of these gallons would eventually have to come from "advanced" biofuels, largely cellulosic ethanol, that have 50-60 percent lower greenhouse gas emissions. Establishment of a new energy block grant program for local governments' use in implementing energy efficiency initiatives. A variety of green building incentives and programs. Changes to the Congestion Mitigation and Air Quality program that allow a 100 percent federal contribution to projects. A "sense of Congress" resolution supporting Complete Streets standards for road design. With work on the energy bill complete, Congress is expected to turn to climate legislation when it reconvenes later this month.