Washington Insider--Tuesday

By DTN's Washington Insider

Here's a quick monitor of Washington farm and trade policy issues from DTN's well-placed observer.

White House Threatens Veto of House Energy, Water Appropriations Bill

The White House Office of Management and Budget says it would recommend that President Obama veto the House's $35.4 billion energy and water appropriations bill, saying the spending legislation "drastically underfunds critical investments" in clean energy and contains "highly problematic ideological riders" related to the Clean Water Act and other issues.

The bill, which passed the House last week (240-177), would cut funding for renewable energy research within the Energy Department, while increasing funding for fossil fuel and nuclear energy programs, and would provide funding for the Yucca Mountain nuclear waste repository, which is opposed by the White House.

"The bill drastically underfunds critical investments that develop American energy sources to build a clean and secure energy future; develop and commercialize the emerging technologies that create high-quality jobs and enhance the Nation's economic competitiveness; and improve resilience against current and ongoing climate impacts that threaten our economy, public health, and natural resources," an OMB statement says. "As a result, it would put at risk U.S. competitiveness in new markets for clean energy industries such as advanced vehicles, advanced manufacturing, energy efficiency for homes and businesses, and domestic renewable energy such as wind, solar, and biomass."

The Senate has yet to approve any fiscal 2016 appropriations measures. Once that chamber votes on its version of the Energy-Water spending bill, there will be an opportunity for a likely conference committee to work out differences between the measures and, perhaps, to address the objections outlined by OMB.

***

Hatch Not Certain of Vote on Trans-Pacific Partnership Trade Deal This Year

Senate Finance Committee Chairman Orrin Hatch, R-Utah, says he believes the Senate will vote on trade promotion authority (TPA) legislation before the week-long Memorial Day recess. However, he added, congressional votes on the Trans-Pacific Partnership (TPP) being negotiated by the United States and 11 other Pacific Rim countries may not take place until next year. Hatch said that he thinks Congress will vote on TPP legislation before President Obama leaves office but that it is unclear whether that would happen this year or next year.

He added that exactly when the Senate will move on the TPA proposal is up to Senate Majority Leader Mitch McConnell, R-Ky. For his part, McConnell said that the Senate will take up the bill after considering the Iran Nuclear Agreement Review Act, which could come as early as this week.

Over in the House, the Ways and Means Committee has approved its version of a TPA bill, but its passage is far from assured. During the Sunday talk shows this weekend, House Assistant Democratic Leader James Clyburn of South Carolina said he did not know whether there were even 20 votes out of a total of 188 Democrats in the House for TPA. That means the measure could pass the House but would fall far short of the 290 votes it would take to override a presidential veto.

---

House Still Fighting EPA, Army Corps Plans to Regulate 'Waters of the U.S.'

Plans by the Environmental Protection Agency and U.S. Army Corps of Engineers to expand the definition of "waters of the United States" appear increasingly jeopardized by moves in Congress to block the expansion.

EPA wants to put under federal oversight any pond or stream that has a "significant nexus" (connection) to a navigable waterway, even if the smaller body contains flowing water just a few weeks a year. Opponents fear the new definition could mean that landowners would need to seek federal permission to dig even a small ditch or build a road if EPA determined that the action would cause harm to previously unregulated areas.

The dispute over the definition of a "water of the U.S." (WOTUS) is becoming one of this year's most pitched environmental battles, with both Republicans and an increasing number of Democrats condemning the proposal.

EPA says the new definition is necessary to clarify guidelines imposed by earlier Supreme Court rulings, and the agency has pledged to fix problems farmers, other landowners and lawmakers raised about the proposal. That hasn't placated opponents, for whom EPA has become a symbol of activist government unsympathetic to property rights.

In April, the House Transportation and Infrastructure Committee approved a bill to force EPA to withdraw its plan and consult state leaders before issuing a new version. That measure is expected to be brought to the floor for a vote after the House returns from its current week-long recess.

Across Capitol Hill, Wyoming Republican Sen. John Barrasso and Indiana Democratic Sen. Joe Donnelly last week introduced companion legislation and are said to be lobbying their colleagues on the bill. Their goal is to get at least 67 senators on board in support of the measure, thus building a veto-proof majority. "Veto-proof" will be needed because President Obama almost certainly would veto the legislation if it reaches his desk.

Opponents of the new WOTUS definition say they fear another case of federal overreach. They also worry that new rules might require U.S. approval to do anything that might pollute the water or alter its flow, including building a new home, reinforcing a berm or installing a culvert. Getting that sign-off can entail years of negotiations with regulators, expensive purchases of offsetting protected areas or outright refusal to build in an area, they say.

However, EPA Administrator Gina McCarthy and a number of environmental groups say pesticides, fertilizer, dirt and chemicals in small waterways find their way downstream to cause problems in major water bodies such as the Chesapeake Bay or Lake Erie, thus the need for Clean Water Act regulation of these smaller waterways.

"I can see how folks are worried we might be painting tributaries with too broad a brush," McCarthy told a farmers' group last month. "We're considering ways to narrow that definition and make sure there are bright lines around exactly what we mean. We are considering appropriate ways to narrow that definition."

Opponents say they see signs that EPA's clarification may actually further expand its reach by including all waterways in some sensitive geographic areas. Farm groups so far have been the most vocal, thus bolstering support for a rollback in rural areas.

Led by the farmers' lobbying push, a coalition of Republicans and rural Democrats last year passed a measure to block the rule in the House 262-152, with 35 Democrats in support. It didn't advance in the Senate, which was then controlled by Democrats. Republicans now lead the Senate, and have pledged to push through repeal legislation.

Whether an effort to send the White House back to the drawing board can gain a veto-proof majority depends on what changes are made in the final rule. However, the claims made by both sides in this conflict have contributed to a "rhetorical overreach" that may make it impossible for EPA to issue any WOTUS rule that would be acceptable to the farm community, Washington Insider believes.

***

---

Want to keep up with events in Washington and elsewhere throughout the day? See DTN Top Stories, our frequently updated summary of news developments of interest to producers. You can find DTN Top Stories in DTN Ag News, which is on the Main Menu on classic DTN products and on the News and Analysis Menu of DTN's Professional and Producer products. DTN Top Stories is also on the home page and news home page of online.dtn.com. Subscribers of MyDTN.com should check out the U.S. Ag Policy, U.S. Farm Bill and DTN Ag News sections on their News Homepage.

If you have questions for DTN Washington Insider, please email edit@telventdtn.com

(GH/CZ)

Copyright 2015 DTN/The Progressive Farmer. All rights reserved.