> CongressDaily AM for Thursday, July 30, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: DEAL WITH BLUE DOGS IGNITES LIBERALS, DELAYING MARKUP
> By Kasie Hunt
>
>
> A trumpeted healthcare reform agreement with conservative House > Democrats
> set off a firestorm of criticism from the party's liberal wing > Wednesday,
> pushing back proceedings in a key committee and casting doubt on the
> strength of the leadership-backed accord.
>
> Leaders and White House officials worked for days to reach an > agreement
> with Blue Dogs, who had been holding up the legislation in the > Energy and
> Commerce Committee because of concerns about cost, burdens on small
> business and a public insurance option.
>
> House Energy and Commerce Chairman Henry Waxman said Wednesday > morning the
> deal would let his committee resume marking up the bill Wednesday > afternoon
> and finish work by Friday, before the House is scheduled to leave > for its
> August recess.
>
> But meetings with liberal Democrats on the Energy and Commerce > Committee
> later Wednesday proved contentious and Waxman was forced to postpone > the
> markup until at least today. "Members had a lot of questions about the
> legislation, and I think it's more important that we sit in the > Democratic
> Caucus and let people ask questions, get answers, raise concerns, > hear each
> other out," Waxman said.
>
> House Energy and Commerce ranking member Joe Barton said Waxman was > in the
> midst of a "circular firing squad."
>
> When asked about the comment, Waxman said: "It's just a fact of life."
>
> "There's angst; there's questions; there's some anger," Rep. Eliot > Engel,
> D-N.Y., a member of the Energy and Commerce Committee, said of the > meetings
> with Waxman. "The question is, have we given up too much for the > goals that
> we need?" he said of the agreement. "I don't want to see the insurance
> companies subsidized by middle-income taxpayers."
>
> A consistent sticking point with Engel and other liberal Democrats are
> changes made to the public option. The Blue Dog agreement includes > Senate
> Health, Education, Labor and Pensions Committee language that > requires the
> HHS secretary to negotiate public plan payment rates directly with
> providers. The original bill based them on Medicare, which liberals > claim
> would force insurance companies to bring down costs if they want to > compete
> with the public plan.
>
> To report the bill out of his committee, Waxman will have to assuage
> concerns from Engel and from members of the Congressional Progressive
> Caucus, which came out against the deal with the Blue Dogs. There > are five
> rank-and-file members of the Progressive Caucus on the committee: > Reps.
> Tammy Baldwin of Wisconsin, Peter Welch of Vermont, Jan Schakowsky and
> Bobby Rush of Illinois and Del. Donna Christensen of the Virgin > Islands.
> Christensen cannot vote on the House floor, but her committee vote > counts.
>
> Whether there is enough opposition from those liberals to prevent the
> committee from reporting the bill is an open question. Three > committee Blue
> Dogs -- Reps. John Barrow of Georgia, Charlie Melancon of Louisiana > and Jim
> Matheson of Utah -- did not sign on to the deal and are likely to vote
> against the bill. Rep. Bart Stupak, D-Mich., was initially opposed > to the
> bill and said the Blue Dog agreement made him less likely to vote > for it.
>
> "I cringe at the word 'deal;' it sounds back room," said Rep. Lois > Capps,
> D-Calif. Capps said "it could be" that she and other more liberal > committee
> members vote against the Blue Dogs' changes. "For some of us, there > are
> certain standards that have to be met," Capps said.
>
> Waxman said he believed he could get the bill through the committee.
> "Members are thinking about it, and I believe we will" have the votes,
> Waxman said.
>
> Waxman suggested liberal committee members might take some of their
> concerns to leadership during the process of melding the Energy and
> Commerce bill with versions from the Ways and Means Committee and the
> Education and Labor Committee. "We're going to do what we can in the
> committee to get the bill through, and many members will also ask
> leadership how we can pay for greater subsidies for lower-income > people,"
> Waxman said.
>
> A more conservative package from the Energy and Commerce Committee > would
> draw opposition from liberals in the full House. "We support what > came out
> of Ways and Means. We support what came out of Education. We have > not only
> concerns, but outright opposition to some of the sections that have > been
> negotiated [by Energy and Commerce] up to this point," said Rep. Raul
> Grijalva, D-Ariz., a co-chairman of the Congressional Progressive > Caucus.
>
> "There are a lot of concerns we have," said Rep. Barbara Lee, D-> Calif.,
> chairwoman of the Congressional Black Caucus.
>
> But liberal members who emerged from meetings with leadership > Wednesday
> suggested many of their concerns could also be assuaged when the three
> committee bills are melded. "A lot can take place in that > reconciliation,"
> said Rep. Sam Farr, D-Calif., a member of the Progressive Caucus.
>
> "I don't know yet," Majority Whip Clyburn said when asked whether the
> changes meant losing floor votes from more liberal Democrats.
>
> House Education and Labor Chairman George Miller said: "The most > important
> thing is to get it [Energy and Commerce bill] out of committee and > get some
> resolution."
>
>
> http://www.nationaljournal.com/congressdai...090730_8369.php
>
> -----
> HEALTH: KEY REPUBLICANS SAY MUCH WORK LEFT ON FINANCE PACKAGE
> By Anna Edney
>
>
> Key Senate Republicans negotiating the only bipartisan bill expected > to
> emerge in the healthcare overhaul debate made clear that the six > senators
> on the Finance Committee are not closing in on a deal and raised > issue with
> the CBO score touted by Finance Chairman Max Baucus on Wednesday.
>
> "They're not even close to having exact language, let alone a CBO > score,"
> Senate Health, Education, Labor and Pensions ranking member Michael > Enzi
> said.
>
> Baucus announced earlier Wednesday that CBO had given them a > preliminary
> $900 billion score on a draft of their bill.
>
> Finance ranking member Charles Grassley said his staff shared with him
> that the score is a few weeks old and the $900 billion figure is > likely too
> high by at least $100 billion. The group of six also never discussed > the
> score in their daily meetings, Grassley added.
>
> The senators have set a high bar for penning their signatures on the
> bipartisan agreement that emerges.
>
> "The three Republicans there have consistently told Sen. Baucus that > we
> have to have assurances beyond him as to what the end game will be,"
> Grassley said Wednesday evening.
>
> Enzi made known earlier in the day he would not sign on to any > bipartisan
> agreement that comes out of Finance without a commitment from > leadership
> that the agreements reached would make the final cut that reaches the
> president.
>
> He has not gotten such a pledge, but said, "Well, I didn't think > that I've
> been spending five hours a day for a couple of months just to give > them a
> Finance package that could be melded into a HELP package, which > would be
> the worst of both worlds and have that go on through."
>
> Enzi was not suggesting that the HELP bill should fall by the > wayside as
> an overhaul bill comes to the Senate floor, but rather the liberal > aspects
> should get the ax. He did not get specific, saying he is "not going to
> legislate through the media," but one of the most liberal aspects of > the
> bill is the public health insurance option.
>
> "I would say that in order to do the Finance bill, we had to have
> agreement that it would not have a public option," Enzi said.
>
> The Finance bill is not expected to include a public option like > HELP's
> bill or the House's version. Instead, it is expected to include a co-> op
> system of coverage that would be customer owned and operated and would
> negotiate with healthcare providers for services.
>
> Enzi described the status of the talks as focusing on the "big issues"
> without having gotten into the smaller details. The group is still > working
> through 13 "big issues," as Enzi described them.
>
> One of those is how to pay for the bill. Sen. John Kerry, D-Mass.,
> proposed a tax on insurance companies that offer expensive plans. > While
> many senators expressed interest in the idea, the specifics of where > they
> will cap the value of untaxed plans seems to be running into some > hurdles.
>
> "They're trying to arrive at levels, to understand still what's
> appropriate, and we're still arguing about that," Kerry said after a > brief
> Wednesday meeting of Finance Democrats.
>
> Sen. Charles Schumer, D-N.Y., appeared less than thrilled about such a
> tax. When asked if he had concerns, he responded, "Well, we'll have > to see
> what it is."
>
> Schumer did not elaborate, but Kerry's idea is meant to be a > compromise
> with Democrats, like Schumer, who do not support capping the value of
> employer-based health benefits eligible for the tax exclusion. > Schumer had
> been uncomfortable even with the idea of capping the tax exclusion > at an
> extremely high level.
>
> With many provisions under discussion, Baucus has been under > pressure by
> his party to release a bill and potentially go to markup before the > August
> recess.
>
> "You can't say you gotta do it in a week, you gotta do it in a month > --
> You gotta do it in the time it takes," Enzi said.
>
> "I'm not suggesting slowing it down," he added. "I'm saying take the > right
> amount of time. I'm saying that it can't be finished in a day or > two, it
> just can't."
>
>
> http://www.nationaljournal.com/congressdai...090730_6275.php
>
> -----
> APPROPRIATIONS: SENATE CLEARS ENERGY AND WATER BILL, AGRICULTURE UP > NEXT
> By Humberto Sanchez
>
>
> The Senate Wednesday approved the $34.3 billion FY10 Energy and Water
> Appropriations bill, 85-9, after rejecting two amendments by Sen. Tom
> Coburn, R-Okla., including one requiring competitive bidding for all
> projects funded by the bill.
>
> The Senate appointed as conferees the Energy and Water Appropriations
> Subcommittee and Appropriations Chairman Daniel Inouye. Majority > Leader
> Reid said the Senate will move to the Agriculture spending bill after
> considering legislation to keep the Highway Trust Fund solvent. (See
> related story, page 11.) The Senate defeated the Coburn contracting
> amendment, 62-35.
>
> Coburn argued that without his amendment, the earmarks in the bill > would
> not be required to be competitively bid and would likely waste > taxpayer
> dollars.
>
> Coburn was critical of an alternative offered by Energy and Water
> Appropriations Subcommittee Chairman Byron Dorgan, D-N.D., to require
> competitive bidding with some exceptions. The Senate approved Dorgan's
> amendment, 79-18.
>
> "We have an amendment that is going to be voted on side by side, for
> political cover only," Coburn said. "If you vote for the Dorgan > amendment,
> you want to continue to connect the well-heeled, the well-connected > in this
> country and you don't want transparency and you don't want > competitive bid
> prices on what we as Americans pay through our tax dollars for what > our
> government buys."
>
> Dorgan said Coburn's amendment was too broad and did not allow for > unique
> research and development projects conducted by the Energy Department > that
> would not lend themselves to competitive bidding.
>
> "The people who do know [about DOE contracting] suggest that the > contract
> competition model for some of those kinds of things doesn't work > very well
> at all, because you are looking for things that go well beyond just > who is
> going to bid the lowest on this kind of research -- very high-tech and
> exotic research that we are doing in a wide range of energy fields," > Dorgan
> said.
>
> The Senate also rejected, 71-26, a second amendment by Coburn to cut > $13.8
> million from the bill for the Energy Department. Coburn said that,
> according to the department's inspector general, the agency last year
> wasted $13.8 million in energy.
>
> An amount "they could have saved had they done some small, simple,
> straightforward things like they request every other agency in the > federal
> government to do," Coburn said. "Isn't it ironic that the very > agency that
> is telling all the rest of the agencies to save money by becoming > efficient
> with their computers, by becoming efficient with their heating and > cooling
> systems, by becoming efficient by their utilization of lighting > doesn't
> even follow their own rules."
>
> Dorgan said that the cut is not needed because the bill provides $643
> million less for the department than President Obama requested and $8
> million less than FY09 level for its administration account.
>
> The Senate Wednesday also adopted, by voice vote, a handful of > amendments,
> including a proposal from Coburn to require public disclosure of > reports
> from agencies to Congress called for in appropriations bills. The > amendment
> exempts sensitive reports on national security and defense.
>
> An amendment from Sen. Bernie Sanders, I-Vt., was adopted, which would
> direct $15 million from the $100 Energy Department industrial > technologies
> program for technical energy grants to institutional entities, such as
> municipal utilities and institutions of higher learning.
>
>
> http://www.nationaljournal.com/congressdai...090730_8909.php
>
> -----
> HOMELAND SECURITY: PROSPECTS FOR AUTHORIZATION BILL LOOK BETTER NEXT > YEAR
> By Chris Strohm
>
>
> For the seventh year in a row, Congress will not produce an > authorization
> bill setting policy and spending priorities for the Homeland Security
> Department, according to lawmakers and aides.
>
> Senate Homeland Security and Governmental Affairs Chairman Joseph
> Lieberman confirmed this week that his panel will not mark up a FY10
> Homeland Security authorization bill, explaining that the Obama
> administration asked him not to rush such a measure through Congress > this
> fall.
>
> House Homeland Security Chairman Bennie Thompson has no plans to > handle a
> departmentwide measure, preferring instead to approve smaller discrete
> authorization bills for certain Homeland Security agencies and > operations.
>
> An authorization bill is one of the main ways Congress can direct the
> operations of an agency. The Senate and House Armed Services > committees,
> for example, produce a bill authorizing defense and military > programs and
> spending every year.
>
> But since its creation in 2003, the Homeland Security Department has > never
> operated under an authorization bill, even though it has more than > 200,000
> employees and spends more than $40 billion in taxpayer funds annually.
>
> Some lawmakers and aides believed the time was ripe for enacting a
> Homeland Security authorization bill, given the arrival of the first > new
> administration since the department's creation and Democratic > control of
> both the White House and Congress.
>
> "My staff has been working on a DHS authorization bill to strengthen > the
> management and integration of the department and authorize appropriate
> funding levels for key programs," Lieberman said in a statement.
>
> "The administration has asked us to slow the process down while it > gets
> its full roster of DHS leaders in place," he added. "Given the > enormous
> amount of work that the Senate still has left to accomplish this > year --
> including healthcare reform, climate change, financial regulatory > reform,
> and several appropriations bills -- I don't anticipate getting an
> authorization bill to the floor this year, but it remains high on my > agenda
> for the 111th Congress."
>
> Senate Homeland Security and Governmental Affairs ranking member Susan
> Collins raised the possibility of getting a bill done next year, > saying she
> will continue to work with Lieberman's staff on an authorization bill.
>
> Across Capitol Hill, Thompson opened the year saying his committee > would
> take up an authorization bill. But he has focused instead on moving
> separate bills targeting specific Homeland Security agencies and
> operations.
>
> Thompson's committee so far has marked up an authorization bill for > the
> Transportation Security Administration, which passed the House in > June, and
> legislation that would extend and expand chemical facility security
> regulations, which remains pending in the House.
>
> An aide to Thompson said the panel plans this fall to mark up
> authorization bills for the Federal Emergency Management Agency; the
> department's Science and Technology Directorate; the Management
> Directorate; and the Office of Intelligence and Analysis.
>
> But the absence of a departmentwide bill in the House has stoked > simmering
> Republican complaints.
>
> "I think it's a serious mistake," said Homeland Security ranking > member
> Peter King, who as chairman of the committee in 2006 spearheaded House
> passage of a Homeland Security authorization bill. "If you're going > to be a
> serious committee, you should do an authorization bill the way serious
> committees do them and not in bits and pieces."
>
>
> http://www.nationaljournal.com/congressdai...090730_1701.php
>
> -----
> TRADE: AFGHANISTAN-PAKISTAN BILL HITS SNAG AS GOAL STARTS SLIPPING
> By Peter Cohn
>
>
> Four Republican senators backing a bill from Sen. Maria Cantwell, D-> Wash.,
> to create duty-free export zones in Afghanistan and parts of > Pakistan on
> Wednesday asked her to resist House Democratic and AFL-CIO efforts to
> toughen its labor standards.
>
> The letter from GOP Sens. Orrin Hatch of Utah, Lindsey Graham of South
> Carolina, Christopher (Kit) Bond of Missouri and Lisa Murkowski of > Alaska
> raises the stakes in the fight over a top White House priority. A > version
> acceptable to unions has passed the House but is held up in the > Senate over
> the labor issue.
>
> "[W]e strongly support the approach to labor of [the Cantwell bill], > and
> we would oppose efforts to change those provisions," the GOP > senators wrote
> in a letter to Cantwell, Senate Finance Chairman Max Baucus and > ranking
> member Charles Grassley. Grassley shares the concerns on the labor > front
> and has said repeatedly he cannot support the House bill without
> modifications.
>
> The Obama administration regards the Afghanistan/Pakistan > "Reconstruction
> Opportunity Zones" measure as a key prong in its regional security
> strategy. The idea is to promote local economic development and get > U.S.
> and other foreign firms to invest in the area and create jobs, > heading off
> recruitment by terrorists.
>
> The bill would allow duty-free shipment for about 15 years of almost > 2,000
> categories of imports, mainly textile and apparel goods such as > terry cloth
> towels, blankets, curtains, coats and nightgowns. It would leave in > place
> tariffs on sensitive cotton apparel products like shirts, socks and
> trousers, which are major Pakistani exports.
>
> Mary Beth Goodman, senior economic adviser to Richard Holbrooke, the > White
> House's special envoy to the region, called the labor issue "the big
> impediment" to the bill.
>
> She said a goal to pass the bill before the August recess was probably
> slipping away.
>
> That is unfortunate, Goodman said, because companies such as apparel
> manufacturers are going to need up to a year just to get factories > built.
> Meanwhile, there are 2.3 million refugees in the Pakistani border > regions,
> she said. And after the August recess, lawmakers will begin to look > at an
> overhaul of trade preference programs that Grassley has said is a more
> natural place for the Afghan/Pakistan bill to be dealt with.
>
> "Our big concern is that it could get shoved into the broader trade
> preference debate, and that could take two to three years to resolve,"
> Goodman said. She added that House Democrats, as well as Republicans,
> should be prepared to negotiate, and that if necessary legislators > could
> always come back later and make fixes.
>
> Cantwell has been helping administration officials try to broker a > deal. A
> spokeswoman said she is keenly aware of the concerns raised by the GOP
> senators.
>
> "However, she urges her colleagues to remember what this is all about:
> July 2009 is already the deadliest month in the eight-year history > of the
> Afghan war in terms of both U.S. and allied soldiers killed in > combat," she
> said. "She is certain that her colleagues, Republicans and Democrats > alike,
> recognize the national security implications of getting stuck in a > deadlock
> over the bill."
>
> Cantwell's bill contains labor standards codified in the 30-year-old
> Generalized System of Preferences program. The GOP senators wrote that
> departing from those standards would "create serious uncertainty and > place
> additional burdens on private-sector investors, thereby deterring
> much-needed major new investments, and thus undermining the entire > purpose
> of this legislation."
>
> They said the House bill, by Rep. Chris Van Hollen, D-Md., would > require
> Afghanistan and Pakistan to meet eight International Labor > Organization
> core labor standards. The United States has only ratified two of those
> standards, thus the House bill would "go far beyond U.S. domestic > labor
> law" and be difficult for less-developed countries to meet, the > senators
> wrote.
>
> AFL-CIO Policy Director Thea Lee said her group was open to > compromise,
> but "we sort of have to be convinced there's something wrong with > the Van
> Hollen bill." She said at this point, there haven't been any workable
> suggestions put in play. "The whole point is to lift people up and > give
> people good jobs, create opportunity. We won't support something that
> allows unscrupulous people to go into these areas and treat people > badly,"
> Lee said.
>
> Labor is not the only outstanding issue. The four GOP co-sponsors, > as well
> as industry groups, want to expand the ROZs to a broader area of > Pakistan.
> Business groups want the product coverage expanded beyond the > limited list
> of textile and apparel products.
>
> In their letter to Cantwell, the Republican senators wrote that the > list
> was the result of careful negotiations with domestic textile > interests and
> should not be amended. Other agricultural and manufactured goods > could be
> added, they wrote.
>
>
> http://www.nationaljournal.com/congressdai...090730_1007.php
>
> -----
> HEALTH: A DAY AFTER SETBACK, FOOD SAFETY BILL BACK BEFORE HOUSE
> By Jerry Hagstrom
>
>
> Democratic leaders plan to bring up a food safety bill on the House > floor
> under regular order today after it failed to garner the two-thirds > vote
> necessary to pass on the suspension calendar on Wednesday.
>
> The House Rules Committee met late Wednesday and issued a closed > rule for
> the bill, with one hour of debate.
>
> The bill, which would give the FDA more regulatory power over food > safety
> and agricultural production, is likely to pass -- 280 House members > voted
> for it Wednesday while 150 voted against it. The bill needed 288 > votes for
> passage under suspension of the rules. Fifty Republicans voted for > the bill
> and 127 voted against it.
>
> The failure to get a two-thirds majority was an embarrassment for > House
> Speaker Pelosi and a short-term victory for House Minority Leader > Boehner
> and House Agriculture ranking member Frank Lucas, who criticized the
> procedures used to bring the bill to the floor.
>
> Boehner and Lucas argued Wednesday that House Agriculture Chairman > Collin
> Peterson should have claimed jurisdiction over the bill, although > FDA is
> part of HHS, which is under the jurisdiction of the Energy and > Commerce
> Committee.
>
> Rep. John Dingell, D-Mich., wrote the bill in Energy and Commerce, > with
> backing from Republican members of the committee. Reps. Jim Costa,
> D-Calif., and Adam Putnam, R-Fla., urged members to support it > because it
> contains provisions intended to restore consumer confidence in the > fruit
> and vegetable industry, which has been damaged by outbreaks of food-> borne
> illness caused by tainted spinach and Mexican peppers.
>
> Costa and Rep. Dennis Cardoza, D-Calif., who are on the Agriculture
> Committee, joined with Peterson in negotiating with Dingell on changes
> requested by farm groups, but Lucas said at a House Agriculture > business
> meeting Wednesday that Peterson should have held a markup. Lucas > also said
> Peterson was allowing Energy and Commerce, which is distrusted by > farmers,
> to become more powerful.
>
> Boehner complained at a luncheon event that Peterson "has full
> jurisdiction over this issue -- and took a pass, which has some of > our Ag
> members upset because now we're going to have the FDA on the farm."
> Peterson negotiated, however, to exempt livestock and grain farmers > from
> FDA inspections.
>
> Boehner also complained that the Democrats did not file the bill until
> 12:15 a.m. Wednesday and two later versions appeared, the last at > 10:50
> a.m. Energy and Commerce ranking member Joe Barton, who supported > the bill,
> acknowledged there were late versions, but he said some of the > changes were
> made to satisfy Lucas' requests.
>
> Cardoza blamed Wednesday's setback on farm groups that failed to > actively
> support the bill even after getting concessions in it. "You can't > just sit
> on the sidelines and put your cards to the chest," he said. A House > source
> said the United Fresh Produce Association supported the bill, while > Western
> Growers, another California fruit and vegetable group, remained > neutral,
> and the California Farm Bureau opposed it. The source predicted > lawmakers
> will be "jaundiced" the next time those groups ask for legislative > changes.
>
> Ferd Hoefner of the Sustainable Agriculture Coalition, which > represents
> small farmers, said some of the 23 Democrats who opposed the bill were
> sympathetic to his group's objections to provisions that would force > small
> farmers and processors to file reports electronically with the FDA > and pay
> the same $500 annual registration fee as big operations such as > Cargill.
>
>
> http://www.nationaljournal.com/congressdai...090730_6419.php
>
> -----
> TRANSPORTATION: OBERSTAR, MICA OFFER MEASURE TO IMPROVE AVIATION > SAFETY
> By Darren Goode
>
>
> House Transportation and Infrastructure Committee leaders Wednesday
> offered up new licensing requirements for commercial pilots and a > host of
> other aviation safety mandates that quickly earned some push-back from
> airlines.
>
> The House bill -- which the full panel will vote on today -- increases
> sixfold the current requirement of 250 hours of flight time needed > before
> commercial pilots and first officers can receive their licenses. The > new
> requirement of 1,500 flight hours is the same as currently needed to > become
> an airline captain.
>
> "There isn't going to be that disparity and there isn't going to be > that
> unwillingness for the first officer to stand up and raise questions > to the
> pilot in command," Transportation and Infrastructure Chairman James
> Oberstar said at a briefing with top Democrats and Republicans on > the full
> committee and the panel's Aviation Subcommittee.
>
> Aviation Subcommittee Chairman Jerry Costello, D-Ill., said an > experienced
> first officer helped avoid fatalities in the Jan. 15 crash landing > of a US
> Airways jet in the Hudson River. Oberstar added that fatalities have
> occurred in part due to first officers being unwilling to challenge > more
> senior pilots.
>
> The bill goes beyond the current requirement that the FAA maintain a > pilot
> record database and would require the agency within a year to finish > a rule
> that would set new limits on the hours a pilot can be on duty. FAA > last
> proposed stricter limits in 1995 but was sued by the Air Transport
> Association, the main trade association of airlines.
>
> The last six airline accidents in the United States have involved > regional
> carriers, and the bill requires online airline ticket sites to > identify on
> the first page what carrier is operating each flight.
>
> Oberstar said the bill should go to the House floor in September and > could
> then be merged with a three-year, $53.5 billion FAA reauthorization > bill
> the House approved in May. The House bill touches on many of the same
> overarching safety issues included in a Senate Commerce Committee FAA
> reauthorization bill.
>
> Transportation and Infrastructure ranking member John Mica, who is
> co-sponsoring the House bill, said there will be opposition to some > of the
> bill's requirements. "Some people aren't going to like this; there's > going
> to be some kickback, I can tell ya," Mica said, noting an e-mail he
> received from ATA.
>
> Major airlines say Congress should hold off on legislating new safety
> standards in order to give more time to a coordinated effort between > the
> FAA, airlines and pilot unions to improve safety on their own.
>
> "We believe in that process and we believe it should be allowed to > proceed
> to a successful conclusion," ATA President and CEO James May said in a
> statement. An ATA spokesman emphasized that the group is not > specifically
> weighing in for or against the bill itself. Oberstar said FAA will > still
> "need a legislative arm backing up the administrator and his > initiatives."
>
>
> http://www.nationaljournal.com/congressdai...090730_1580.php
>
> -----
> TRANSPORTATION: CASH TO KEEP HIGHWAY FUND AFLOAT CRUISES THROUGH HOUSE
> By Darren Goode
>
>
> The House Wednesday approved a $7 billion boost to the federal highway
> program to make sure it stays afloat through September.
>
> The 363-68 vote exceeded the two-thirds needed to pass on the > suspension
> calendar. Senate Majority Leader Reid said Wednesday night he hopes > to act
> on the bill as soon as it arrives from the House today. Four > Republican
> amendments will be considered.
>
> But House and Senate Democratic leaders might be at odds when they get
> back from the August recess over how long to extend current law, which
> expires at the end of September.
>
> House Transportation and Infrastructure Committee leaders do not > want to
> extend current law at all in order to keep pressure on lawmakers to > act on
> a six-year surface transportation reauthorization bill. "We will do > that in
> September," Transportation and Infrastructure Chairman James Oberstar
> promised regarding the six-year bill.
>
> Senate Democratic leaders, backed by the Obama administration, have > sought
> an 18-month extension of current law, through March 2011, to give > enough
> time in the face of pressing healthcare and climate change > legislation.
> "We're not going to let that happen," Oberstar said.
>
> The Transportation Department said in a statement that the cash > infusion
> will keep the highway fund solvent "until a longer-term solution can > be
> reached," adding that the administration continues to favor an 18-> month
> extension of transportation programs.
>
> "The bottom line is that we need to pass an extension of the highway
> program. There is simply no way that Congress will be able to pass a
> reauthorization of the highway bill before the program expires at > the end
> of September," Senate Environment and Public Works ranking member > James
> Inhofe said. "There are simply too many big questions left that must > be
> answered, including how we are going to pay for it."
>
>
> http://www.nationaljournal.com/congressdai...090730_5297.php
>
> -----
> FINANCE: SCHUMER'S GOVERNANCE BILL EXPECTED TO HITCH A RIDE
> By Bill Swindell
>
>
> Sen. Charles Schumer, D-N.Y., Wednesday challenged a top business
> executive to endorse his legislation to give shareholders a greater > say in
> the corporate boardroom, noting that many public companies are > taking steps
> called for in his bill, such as splitting the duties between the board
> chairman and CEO and requiring annual director elections.
>
> Schumer pushed John Castellani, president of the Business Roundtable,
> during a Senate Banking Securities Subcommittee hearing to support his
> legislation to increase transparency and accountability by also > requiring
> board directors to receive at least 50 percent of the vote in > uncontested
> elections and mandating boards create a risk committee.
>
> "You know that some of the proposals in [my] shareholder bill of > rights
> are already being adopted by your member companies and reflect an > emerging
> consensus on best practices in corporate governance. If that's the > case,
> what are you so afraid of?" Schumer asked. "Why does the > roundtable ...
> [go] so far to defend outlier companies?"
>
> Castellani said those decisions are best left for each public company,
> noting that the separation of CEO and chairman duties could make > sense when
> the company is undergoing a transition of top executives. "In other
> circumstances, boards feel it makes best sense to have both > together, but
> [may] protect against the downside by having a presiding director. > So the
> question is, why require?" Castellani said.
>
> The debate took place as the House prepares to vote Friday on > legislation
> to require annual nonbinding advisory votes on executive > compensation and
> golden parachute packages for top personnel -- similar to language in
> Schumer's bill.
>
> Congress will likely attach corporate governance standards to its > revamp
> of the regulatory system, and business lobbyists are working to > scuttle
> Schumer's bill because it represents the farthest reach for the > shareholder
> democracy movement, which has grown under Democratic control of > Congress
> and the White House and amid populist anger over government bailouts.
>
> Sen. Bob Corker, R-Tenn., noted at the hearing that some of > Schumer's bill
> would probably be tucked inside the regulatory bill given Schumer's
> closeness to Banking Chairman Christopher Dodd. "My guess is that just
> knowing how things work around here, [Dodd] may defer to him on some > of
> these corporate governance issues," Corker said.
>
> Corker then quizzed the panelists who testified Wednesday -- who > included
> labor officials, academics and an official for institutional > investors --
> on main provisions of Schumer's bill. He found the least resistance > on a
> shareholder say-on-pay vote and the requirement that board directors > must
> receive a majority vote in uncontested elections, but greater > opposition to
> splitting the CEO and chairman positions. Schumer indicated at the > hearing
> he was amenable to making some changes in that provision, especially > after
> hearing criticism from top executives.
>
> Corker spoke out especially against eliminating staggered board > terms. "I
> hope if we do anything on corporate governance, it is modest," > Corker said.
>
>
> http://www.nationaljournal.com/congressdai...090730_4609.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> BACK TO SCHOOL. Education Secretary Duncan announced the > appointments of
> five top aides this week, including two with Capitol Hill > experience. Emma
> Vadehra, the deputy assistant secretary for planning, evaluation and > policy
> development, comes from the Senate Health, Education, Labor and > Pensions
> Committee, where she was senior education adviser for HELP Chairman > Edward
> Kennedy. Previously, she worked with Uncommon Schools, which develops
> charter schools. Michael Roark, currently chief financial officer > for AOL
> Europe, will become chief administrative officer in the office of the
> deputy secretary. Roark joined AOL in 2006 after working as CFO for > the
> Corcoran Gallery of Art. He worked in the early 1990s for Rep. Rosa
> DeLauro, D-Conn. Nia Phillips, who was a deputy political director in
> Georgia for President Obama during the 2008 campaign, will become > deputy
> general counsel for departmental and legislative services. She > previously
> taught first grade in Brooklyn, N.Y. Also joining Duncan's team are
> Jacqueline Jones, an assistant commissioner at the New Jersey > Department of
> Education, who will become senior adviser for early learning; and > Katherine
> Tobin, a governor of the U.S. Postal Service, who becomes deputy > assistant
> secretary for performance improvement.
>
> ONE RUBIN, TO GO. ACA International, the Association of Credit and
> Collection Professionals, has named Karolyn Rubin its president. > Rubin has
> been with Bonded Collection Corporation in Chicago for more than 23 > years.
> ACA International has more than 5,500 members in 65 countries, sets > ethical
> standards and trains employees in the debt-collection industry.
>
> DEFENSIVE MOVE. Kenneth A. Myers III, a former staffer on the Senate
> Foreign Relations Committee, has been sworn in as director of the > Defense
> Threat Reduction Agency at the Pentagon. Myers was a senior adviser > for
> Foreign Relations ranking member Richard Lugar, specializing in > European
> and former Soviet and Central Asian affairs. He joined the committee > in
> 2003. Myers earned a bachelor's degree at Virginia Tech and a master's
> degree from Catholic University.
>
> THE BIG Q. Qorvis Communications has added the former press > secretary for
> Rep. Lloyd Doggett, D-Texas, to its public affairs team. Wyeth > Ruthven, who
> worked for Doggett for more than three years, was one of 10 new hires
> announced by Qorvis this week. Ruthven was previously communications
> director for the South Carolina Democratic Party. Qorvis, founded in > 2000,
> is growing despite the recession. Managing partner Michael > Petruzzello said
> the firm has landed more than 20 new clients this year, including > Intel,
> the Kurdistan regional government of Iraq and Massey Energy. It > recently
> helped launch the "No Choke Points" coalition working on broadband > issues.
>
>
> http://www.nationaljournal.com/congressdai...090730_4483.php
>
> -----
> HOUSE RACE HOTLINE EXTRA: FIT TO SIZE
> By Tim Sahd
>
>
> He certainly didn't invent the idea, but when he led the Democratic
> Congressional Campaign Committee during the 2006 cycle, now-White > House
> Chief of Staff Emanuel prided himself on recruiting candidates who fit
> their districts.
>
> While Democrats had nominated liberals to run against former Rep. > Charles
> Taylor, R-N.C., Emanuel reached out to the former University of > Tennessee
> quarterback Heath Shuler and coaxed him into running. Shuler was an
> unlikely pick, considering he was actually recruited by Republicans > to run
> for office while in Tennessee. But in Taylor's western North Carolina
> district, that was just the type of Democrat who could win, and did.
>
> In Indiana, Democrats went into the "Bloody 8th," represented by GOP > Rep.
> John Hostettler, and recruited sheriff Brad Ellsworth. Ditto for > healthcare
> lobbyist Jason Altmire, who Democrats nabbed to challenge GOP Rep. > Melissa
> Hart in suburban Pittsburgh.
>
> All were conservatives -- socially, fiscally or both -- and all fit > their
> districts. None would find themselves the toast of DailyKos or other
> liberals, yet they all won and helped Democrats build a majority > coalition.
>
> Of course, politics and policy are two different beasts, and the > moderates
> in 2006 welcomed with open arms by the new Democratic majority are > now some
> of the Blue Dogs gumming up the works for the leadership on health > care.
>
> And now, some of them are targets, not only of Republicans, but of
> factions within their own party.
>
> Organizing for America, the outgrowth of President Obama's > presidential
> campaign, asked supporters to rally outside of the office of Rep. > Betsy
> Markey, D-Colo., in Fort Collins this week to pressure her on health > care.
> That organization wants Markey to support a public option, a move > she has
> yet to commit to. Later, OFA claimed the location was mixed-up and > moved
> it.
>
> The Democratic National Committee has also aired TV ads targeting > moderate
> Republicans and conservative Democrats, stating that "It's time for
> healthcare reform."
>
> But Democrats are hardly the first to have a problem with their > moderate
> elements.
>
> Republicans have fought the same battles, except they have played > out in
> primaries. And recently, conservatives have found an ally in the > Club for
> Growth.
>
> In 2008, the Club supported state Sen. Andy Harris against Maryland > GOP
> Rep. Wayne Gilchrest. Harris ran a TV ad showing voters calling > Gilchrest
> "too liberal" and saying, "he might as well be a Democrat." Harris > won the
> three-way primary with over 43 percent.
>
> In 2006, the Club spent over $500,000 to help former state Sen. Tim
> Walberg defeat Rep. Joe Schwarz, R-Mich.
>
> Both Gilchrest and Schwarz were not reliable votes for the GOP > leadership,
> and while former President George W. Bush and other party leaders
> campaigned for them, primary voters gave each the heave-ho. Their > gambits
> backfired; Democrats represent each seat. And intra-Republican Party
> turmoil has already started this cycle.
>
> In the special election to fill the seat of Rep. John McHugh, R-> N.Y., who
> will resign once confirmed as Army secretary, GOP leaders last week
> nominated Assemblywoman Deidre Scozzafava, choosing her over a > hearty field
> of challengers.
>
> What's remarkable is, after looking at her record, she doesn't > really fit
> into the box so many Republicans settle into these days, at least on > social
> issues. She favors abortion rights and voted for same-sex marriage. > For a
> time, she even considered running for the Democratic nod.
>
> But while Republican county chairmen weren't scared away by these
> positions -- it's a swing district where Obama took 52 percent -- > leaders
> on the right weren't so happy.
>
> The major problem: The New York Conservative Party likely won't > endorse
> her. Typically, Republicans don't win in the state unless the > Conservatives
> add them to their party's line in the general election. Conservative > Party
> Chairman Mike Long told us the last time a congressional Republican > won
> without his party's line was the late Rep. Bill Green in 1990.
>
> Some conservatives in the blogosphere, too, are unhappy with the > choice,
> and have called on donors not to give to Republican efforts to hold > the
> seat.
>
> Still, there seems to be little backlash inside the district, meaning
> Scozzafava may indeed fit the district -- the type of candidate who > wins
> elections, but gives the party headaches when it tries to govern.
>
> Republicans have trumpeted their success in recruiting moderates in > the
> Northeast and the West. Scozzafava's bid might be a test as to whether
> conservatives will accept these candidates as a way back to a > majority, or
> if they'll shun them in the general.
>
> And now that Democrats have the majority, and have to deal with > renegade
> members, will there be an element -- like the Club for Growth -- that
> targets them in primaries.
>
> The temptation's got to be there among the liberal base after watching
> House Democrats, with a 40-seat majority, struggle to come up with a > bill
> central to the party platform.
>
>
> http://www.nationaljournal.com/congressdai...090730_8127.php
>
> -----
> POLITICAL ROUNDUP: MATHESON WILL NOT SEEK STATEWIDE BID
>
> Rep. Jim Matheson, D-Utah, announced Wednesday he would seek re-> election
> and forgo a statewide bid next year, the Salt Lake Tribune reported.
>
> "The interest in my future plans as far as running for the U.S. > Senate or
> governor of Utah is very flattering," he said in a statement. "At this
> time, I feel that I can be most effective pursuing an agenda that > puts the
> people of Utah first by running for re-election for my current House > seat
> next year."
>
> Matheson last year won by 29 percent in his Republican-leaning > district.
>
> He left open the possibility of a statewide bid in the future.
>
>
> http://www.nationaljournal.com/congressdai...090730_4690.php
>
> -----
> POLITICAL ROUNDUP: DEMOCRATS TO PICK CANDIDATE FOR MCHUGH'S SEAT > AUG. 10
>
> The field of Democrats seeking to replace Rep. John McHugh, R-N.Y., > has
> been set, according to the party's county chairmen in the 23rd > District.
>
> The officials said the party will interview 11 candidates on Aug. 10 > and
> make a decision.
>
> Meanwhile, Dan French, a Democrat and former congressional staffer,
> Wednesday took his name out of the running, PolitickerNY reported.
>
> "While I intend to return to public service in the future, this is > not the
> right time for me or my family," French said.
>
> The former U.S. attorney said he considered entering the race > following
> state Sen. Darrel Aubertine's decision to pass on a bid last week.
>
> The field includes Andy Bisselle, a registered Republican who
> unsuccessfully sought that party's nomination for the seat; attorney > Stuart
> Brody; 1994 Democratic nominee Danny Francis; attorney Brian McGrath;
> attorney Michael Oot, who sought the seat last year; attorney William
> Owens; and John Sullivan, a former Oswego mayor.
>
> The winner will face Republican Assemblywoman Dierdre Scozzafava.
>
>
> http://www.nationaljournal.com/congressdai...090730_7623.php
>
> -----
> HILL BRIEFS: DEFENSE APPROPRIATIONS BILL UP FOR HOUSE VOTE TODAY
>
> The House on Wednesday began consideration of the FY10 Defense
> Appropriations bill, in anticipation of voting on the $636.3 billion
> spending measure today.
>
> During general debate, several Republicans took issue with an > amendment
> that House Defense Appropriations Subcommittee Chairman John Murtha, > D-Pa.,
> will offer today to strike a $369 million down payment in the bill > for 12
> F-22 Raptor fighter jets in FY11.
>
> "We cannot afford to take a chance and risk the lives of troops on the
> ground if we don't secure the air overhead," Defense Appropriations
> Subcommittee ranking member C.W. (Bill) Young, R-Fla., said.
>
> Once a proponent of buying more F-22s, Murtha reversed course last > week
> when the Senate voted, 58-40, to eliminate funding for the fighters > from
> the FY10 defense authorization bill after a strong push from President
> Obama, Defense Secretary Gates and other senior administration > officials to
> cap the program at the 187 fighters ordered.
>
>
> http://www.nationaljournal.com/congressdai...090730_1023.php
>
> -----
> HILL BRIEFS: KERRY: U.S. AND CHINA NEED MORE SPECIFIC CLIMATE GOALS
>
> Senate Foreign Relations Chairman John Kerry said Wednesday the United
> States and China need to work toward more concrete agreements on > climate
> change before the United Nations Climate Change Summit in December.
>
> Speaking at the National Press Club, Kerry gave both countries > credit for
> signing a memorandum of understanding on climate change after two > days of
> talks in Washington, but "more could have been and more should have > been
> done."
>
> Kerry called for a plan that articulated dates and performance goals,
> saying it was critical for the summit, and would help China make > long-term
> commitments for emissions reductions.
>
> "Aspirational commitments can't stand in the place of legal > commitments,"
> he said.
>
> Kerry also praised China for increasing its production of renewable
> energy, and hoped the United States would follow.
>
> On cap-and-trade legislation the Senate is working on, Kerry said he > was
> not contemplating that a bill would fail to pass in the fall. He said
> supporters were "going to keep working until we have the votes."
>
> Kerry added that passing legislation before the summit in Copenhagen,
> Denmark, will show that the United States has "led by example."
>
>
> http://www.nationaljournal.com/congressdai...090730_3357.php
>
> -----
> HILL BRIEFS: JEFFERSON BRIBERY CASE HEADED TOWARD JURY
>
> Closing arguments were presented Wednesday in the trial of former Rep.
> William Jefferson, D-La., with federal prosecutors saying that $90,000
> found in the freezer of Jefferson's Washington apartment in 2005 was > just
> the most recent bribe money he had received.
>
> Jefferson, who lost a re-election bid last year, is accused of > receiving
> more than $400,000 in bribes and seeking millions more in exchange for
> using his influence to broker business deals in Africa. Prosecutor > Rebeca
> Bellows told jurors in the Alexandria, Va., courtroom that Jefferson > was
> engaged in numerous bribery schemes while serving in Congress and > that the
> only difference with the money in the freezer is that he was caught > on tape
> receiving it.
>
> Jefferson's defense lawyers argued that while Jefferson may have > engaged
> in influence-peddling, he did not engage in illegal bribery. Lead > attorney
> Robert Trout said the government had overreached in trying to convict
> Jefferson and he urged the jury to "speak truth to power" and find him
> innocent on every count, the New Orleans Times-Picayune reported.
>
>
> http://www.nationaljournal.com/congressdai...090730_7194.php
>
> -----
> HILL BRIEFS: CFTC SAID LEANING TOWARD LIMITS ON FUTURES CONTRACTS
>
> The head of the Commodity Futures Trading Commission aired concerns
> Wednesday that exempting some investors from proposed position > limits on
> futures contracts could undermine efforts to rein in speculation in > energy
> trading, Reuters reported.
>
> "While I believe that we should maintain exemptions for bona fide > hedgers,
> I am concerned that granting exemptions for financial risk > management can
> defeat the effectiveness of position limits," CFTC Chairman Gary > Gensler
> said at a second hearing his agency has held on regulatory oversight > of
> U.S. futures markets.
>
> The CFTC is considering position limits to prevent manipulation of > energy
> markets by dominant players. It also is examining whether some traders
> should be able to exceed whatever limits are imposed.
>
> Gensler said he saw support for CFTC limits on how many futures > contracts
> can he held. "There seemed, at least, that the commission is hearing
> support," Gensler said after the hearing. "I think it's more a > question of
> how, than whether."
>
>
> http://www.nationaljournal.com/congressdai...090730_1872.php
>
> -----
> HILL BRIEFS: MEDICARE FRAUD SCAMS TARGETED IN FOUR STATES
>
> Federal authorities arrested more than 30 suspects in a major Medicare
> fraud bust Wednesday in New York, Louisiana, Boston and Houston, > targeting
> scams such as "arthritis kits" -- expensive braces that many > patients never
> used.
>
> More than 200 agents worked on the $16 million bust that included 12
> search warrants at healthcare businesses and homes across the > Houston area,
> where the bulk of the arrests were made.
>
> Some of the businesses were distributing arthritis kits that were > merely a
> combination of knee and shoulder braces and heating pads. Patients > told
> offic