Washington Report – July 8, 2024

Due to the Republican National Convention in Milwaukee, WI, July 15-18, Congress will not be in session. The APWA Washington Report will be published next on July 22. Look for Government Affairs updates on X and LinkedIn.

Latest News

FY25 Appropriations Update

The U.S. House draft Energy-Water appropriations bill proposes:
- $10B for the Army Corps, $2.7B more than the President’s request
- $3.1B for the Harbor Maintenance Trust Fund, up from $1.4B
- $1.85B to reduce damage from floods and storms
- $423M for construction of projects in inland waterways
- $218M for the Corps’ program covering permitting decisions for surface waters and federally regulated wetlands, and the Corps and EPA are directed to provide additional guidance documents explaining the regulatory scope of the Clean Water Act — specifically, the latest definition of waters of the U.S. (WOTUS)
- $1.77B for the Bureau of Reclamation, $329.5M more than Biden’s request
The House draft Interior-Environment appropriations bill proposes $38.4B for the Interior Department and EPA budgets, a $72M cut, along with a host of policy riders to counteract Biden administration actions;
- EPA would be cut 20% to $7.36B, $3.6B lower than what the president requested
- State Revolving Funds, the biggest line item in EPA budget at $2B, face cuts of 27% for clean water and 22% for drinking water though the bipartisan infrastructure law provides a boost to SRF funding through 2026 but congressional appropriations again have been eaten up by earmarks
- Water Infrastructure Finance and Innovation Act program would get $64.6M, less than the $80M sought by the administration
- 19% cut to environmental clean-ups though Superfund would increase by $123M or 23% to compensate for lower-than-expected revenue from revived excise taxes
- 17% cut to state and tribal assistance grants
- Council on Environmental Quality cut by 80%, from $3.6M to $1M
- $1.37B for the U.S. Geological Survey
- $3.6B for Wildland Fire Management (includes funding from multiple federal agencies)
Policy riders would stop:
- The new interpretation of WOTUS
- Using the social cost of carbon to calculate regulatory benefits
- Wastewater discharge limits for coal power plants and meat processing plants
- Updates to the National Environmental Policy Act reviews for permitting
- Changes to EPA’s chemical risk management program
- Endangered species protections for some animals
- A rule on state authority to block infrastructure under the Clean Water Act
The measures are nonstarters among Senate Democrats who are pushing for increased spending and limiting policy riders; House Republicans last year proposed cutting $13.4B, but after negotiations just $300M was cut;
The House draft Commerce-Justice-State and Related Agencies appropriations bill proposes a total discretionary allocation of $78.28B, which is $1.27B below FY24. This includes
- $9.84B for the Department of Commerce
- $5.64B for the National Oceanic and Atmospheric Administration (NOAA)
Transportation—the following lines represent House Appropriations Transportation Housing and Urban Development (THUD) Subcommittee numbers Office of the Secretary
- $0 for RAISE and Mega (aside from IIJA advance appropriations)
- $11M for Build America Bureau
- $423M for Essential Air Service subsidies
Federal Highway Administration
- $61.3B in obligation limitation (Highway Trust Fund, or HTF)
- $1.5B in highway earmarks (General Fund, or GF)
- Repurposing of 10+ year old earmarks as Surface Transportation Block Grant Program dollars if less than 10 percent has been obligated, to be used within 25 miles of original funding designation
- Prohibits use of funds for FHWA’s greenhouse gas performance measure rule
Federal Transit Administration
- $14.3B in obligation limitation (HTF)
- $116M in transit earmarks (GF)
- $754M in Capital Investment Grants
Federal Railroad Administration
- $299M for Consolidated Rail Infrastructure and Safety Improvements (GF)
- $0 for Federal-State Intercity Passenger Rail Partnership grants (aside from IIJA advance appropriations)
National Highway Traffic Safety Administration
- $1.3B in total funding (HTF and GF)
Federal Motor Carrier Safety Administration
- $909M in total funding (all HTF)
Federal Aviation Administration
- $13.6B for operations (Airport and Airway Trust Fund and GF)
- $3.5B for facilities and equipment (GF)
- $4 billion for Airport Improvement Program.

Supreme Court Decisions Curbing Agency Enforcement

The U.S. Supreme Court issued two 6-3 opinions, along ideological lines, that will make regulatory development and enforcement more difficult for federal agencies while empowering decision-making by lower courts;
The first decision, Loper Bright v. Raimondo and Relentless v. Commerce, brings an end to the 40-year-old Chevron Doctrine, a legal theory that courts should defer to agencies’ reasonable readings of unclear statutes when crafting rules;
- The original reasoning was that judges are not experts in the field and are not part of a political branch of the government
- The doctrine has been used by administrations of both parties in defense of their rules
The second decision, Securities and Exchange Commission v. Jarkesy, upends the power of agencies’ in-house judges to handle legal matters internally;
- The ruling held the Constitution’s 7th Amendment guarantee to a trial by jury applies when the SEC seeks civil penalties for securities fraud, but legal experts said it raises questions about many agencies’ ability to impose fines for violations of a host of laws and rules along with agency’s legal capacity for such cases
- The Supreme Court already ruled in 1987’s Tull v. U.S. that the Clean Water Act’s penalty structure is like the type of “common law” for which the Constitution promises a trial by jury. The Clean Air Act and the Safe Drinking Water Act have similar structures
- EPA and, ultimately, courts will have to decide if the regulatory regime is more akin to common law or whether it is new and thus not the kind of law for which the Constitution guarantees a jury trial.

EPA Funding Opportunities for Water Infrastructure

As part of its National Priorities program, EPA is seeking applications for research on de facto water reuse, a term that refers to a community drawing water from a river or reservoir that includes some fraction of treated wastewater from upstream communities;
- There will be an informational webinar at 1 p.m. ET, July 11, with applications due Aug. 21
The other opportunity is the Building Partner Capacity & Promoting Resiliency & Equity under Clean Water Act, Wetlands, Nonpoint Source, Monitoring, Assessment and Listing Programs;
EPA is providing support for training and related activities to build the capacity of agricultural partners, state, territorial and tribal officials, and nongovernmental stakeholders in activities to be carried out to support the goals of the Clean Water Act;
- Applications due July 17.

Reconnecting Communities Funding Opportunity—Due Sept. 30

Established under the Infrastructure Investment and Jobs Act, the Reconnecting Communities grant is a competitive program for communities impacted by transportation barriers;
Eligible entities include state, local, and tribal governments, non-profit organizations, metropolitan planning organizations who would use the funding to remove, retrofit, or mitigate highways or other transportation facilities that have created barriers to community connectivity—including to mobility, access, and economic development;
Priority will be given to applications with focus on equity and Justice40, assisting economically disadvantaged communities, access, climate change mitigation, workforce development, planning integration;
Click the link for more information about the Reconnecting Communities Pilot Grant Program.

White House Announces $1B in BRIC Funding

The White House has announced $1B worth of awards through the Building Resilient Infrastructure and Communities (BRIC) grant program;
656 projects covering state, local, tribal, and territorial governments have been awarded;
BRIC grants help communities address current and future natural disasters risks, including extreme heat, wildfires, drought, hurricanes, earthquakes, and increased flooding;
$398M in this latest announcement is from the enactment of IIJA;
Click here for a list of grant recipients.

White House Requests Supplemental to Address Disaster Needs

The White House is asking Congress for additional revenue to replenish the Disaster Relief Fund (DRF) and other funds related to emergency and disaster relief;
The funding would include:
- $3.1B for the Transportation Department’s Emergency Relief Program to cover costs for Baltimore’s Key Bridge and other needs
- $700M for the Community Block Grant Disaster Recovery Program for Maui wildfires and severe storms nationwide, including tornado and hurricane recovery efforts
Congress has yet to announce a timetable for when any such action may be considered.

Homeland Security Announces $18.2M in Tribal Cyber Grants

The Department of Homeland Security (DHS) is awarding $18.2M to 30 tribal nations in its Tribal Cybersecurity Grant Program;
The grants establish frameworks for tribal nations to address cyber threats and vulnerabilities, evaluate needed capabilities, implement measures to mitigate the threats, and develop a 21st-century cyber workforce across local communities;
The grant program came to being with IIJA’s enactment.

SAFECOM Release Updated Toolkit

APWA partner organization SAFECOM recently released its Public Safety Communications and Cyber Resiliency Toolkit;
The toolkit is expandable and maintained as a living site to allow for coverage of future resources and topic areas;
Version 24.1 features 100 resources, more than 16 topic areas, and includes not only Cybersecurity Infrastructure and Security Agency (CISA) direction but guidance from the Federal Communications Commission (FCC), and the National Institute of Standards and Technology (NIST).

On the Horizon

All times ET.

July 9 at 3 p.m., the Federal Emergency Management Agency (FEMA) will host a webinar on its updated Public Assistance Program and Policy Guide (PAPPG) for Tribal Nations;
July 10 at 9 a.m., the House Appropriations Committee will mark-up a FY25 Transportation, Housing and Urban Development (T-HUD) spending bill;
July 10 at 10 a.m. the Senate Committee on Homeland Security and Governmental Affairs will hold a hearing on Oversight of the Permitting Council: Improving Transparency and Coordination;
July 10 at 2:30 p.m. the Senate Agriculture Committee’s Subcommittee on Rural Development and Infrastructure is holding a hearing on the “State of Rural Infrastructure: Emergency Response, Recovery, and Resilience”;
July 11 and July 18 from 10 a.m. until 3 p.m., CISA will host a virtual seminar on Chemical Security for industry organizations, facility owners and operators, government officials, first responders;
July 16 at 2 p.m., CISA will host a webinar on How to Get Involved in Cybersecurity Awareness Month 2024.