Congressional
Climate Bill Tracking
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Video Of The Day
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Dems Fail to Take Wisconsin Senate
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Greetings!
Please enjoy today's issue of the Congressional Climate newsletter, brought to you by Lobbyit.com!
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Today's Hill Action:
THE SENATE:
No meeting scheduled for today.
SENATE COMMITTEES:
No meetings scheduled for today.
THE HOUSE:
No meeting scheduled for today.
HOUSE COMMITTEES:
No meetings scheduled for today.
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| Harry Reid super committee picks in place

In the first of what will be a closely watched selection process for a powerful new deficit panel, Senate Majority Leader Harry Reid announced he will appoint Democratic Sens. Patty Murray (Wash.), Max Baucus (Mont.) and John Kerry (Mass.) as his three choices for a super committee charged with finding more than $1 trillion in spending cuts by the end of this year.
Murray will serve as co-chair of the 12-member panel. Speaker John Boehner (R-Ohio) will select her co-chair and two other panelists, as required by the debt limit agreement signed into law by President Barack Obama last week. Minority Leaders Nancy Pelosi and Mitch McConnell will each select three additional members.
"The Joint Select Committee has been charged with forging the balanced, bipartisan approach to deficit reduction that the American people, the markets and rating agencies like Standard and Poor's are demanding," Reid said in a statement. "To achieve that goal, I have appointed three senators who each posses an expertise in budget matters, a commitment to a balanced approach and a track record of forging bipartisan consensus."
Reid's three picks are loyal to the majority leader and are intended to show the Nevada Democrat is serious about forging a bipartisan deal to head off $1.2 trillion in spending cuts required under the debt deal. The super committee was Reid's contribution to the bipartisan agreement to end the debt limit fight.
A senior appropriator and Budget Committee member, Murray is also the chairwoman of the Democratic Senatorial Campaign Committee, which has made the GOP's focus on overhauling Medicare a centerpiece of the 2012 campaign. Baucus is the chairman of the powerful Finance Committee, while Kerry - the 2004 Democratic presidential nominee - has been lobbying for a spot.
But the choice of Murray was already spawning anger from Republicans, who called it a blatantly political move aimed at filling up coffers for the Democratic campaign committee. RNC Chairman Reince Priebus called on Reid to withdraw the appointment immediately.
"The Select Committee is no place for someone whose top priority is fundraising and politics," Priebus said.
Reid and Pelosi had been considering whether to install candidates who will draw a hard-line against deep entitlement cuts, particularly if Republicans don't bend on new taxes. The Democratic leaders want loyalists who won't give the panel majority support for a cuts-only approach, which could target popular programs like Medicare and Social Security.
"The No. 1 criteria should be someone who fights for revenues, and if Republicans continue to rule out revenues, then the Democrats have to play proper defense in response," said a senior Democratic aide.
In a joint statement, Kerry, Baucus and Murray said they were serious about answering the call to "step beyond partisanship and politics" and achieve a "balanced, pragmatic and practical" solution to the soaring national debt.
In an email sent to her colleagues Monday evening, Pelosi said her caucus was committed to "protecting" Medicare, Medicaid and Social Security - and said that the new panel should deliberate in public settings so that it achieves a "balanced" approach to deficit reduction.
"Many of you have expressed your interest in serving on the Joint Committee," Pelosi told her colleagues. "I have and will be reaching out to each of you before making any decision."
Leaders have until next week to announce their picks for the closely watched panel, although Reid's opening move is expected to speed up that process.
The membership will be crucial, since any deal that receives a majority support will be fast-tracked through the House and Senate for consideration before year's end.
All four party leaders face internal politics as they try to choose members who will both represent their caucus' interests and try to show a level of seriousness amid a fiscal crisis that led Standard & Poor's to downgrade the U.S. credit rating for the first time in history. And the appointees must be able to withstand withering criticism from their bases if they cut a compromise deal - or public outrage if they fail to reach an accord at a time of historic deficits.
Many Hill insiders believe vulnerable lawmakers won't be appointed to the politically charged panel.
While most of McConnell's GOP caucus is deadset against raising revenues, even by keeping income tax rates the same and eliminating preferences in the tax code, Reid has a much more diverse collection of colleagues, which made it more challenging for him to find members who will stay loyal to the party while also trying to cut an effective deal.
Reid also has to defend 23 Democratic-controlled Senate seats in 2012, vs. only 10 for McConnell.
Democratic insiders said Reid came "under pressure" from several fronts - first, progressive and liberal members want at least one of their own named to the joint panel in order to ensure that their positions on spending and entitlement cuts are factored into any final recommendations.
"What I don't like is revenues not being part of it, and I'm going to fight to make sure it's included" in the super committee, Sen. Ben Cardin (D-Md.) said last week.
By choosing Baucus, Reid may unnerve some liberals who have been skeptical of the Montana Democrat's deal-making with Republicans over the years. But Baucus also has held the party line on raising revenues and attacking GOP budget plans to overhaul Medicare, a role he played in the budget talks with Vice President Joe Biden.
And by choosing Murray, the DSCC chief, Reid opens himself up to GOP criticism for choosing the Democratic senator whose foremost concern is 2012 Senate politics heading into a daunting election year.
"It is shocking that Harry Reid appointed his chief fundraiser to a committee that will be the central focus of every lobbyist in town," said one Republican official.
Kerry, who has drawn fire from the right for calling S&P's move a "tea party downgrade," has been eager to add to his Senate resume a sweeping domestic achievement.
Noticeably absent from Reid's choices are the three Democrats who served as part of the bipartisan Gang of Six who proposed a sweeping budget deal, which the majority leader never embraced - Senate Majority Whip Dick Durbin (D-Ill.), Budget Committee Chairman Kent Conrad (D-N.D.), and Sen. Mark Warner (D-Va.).
Durbin, Reid's top deputy, signaled his interest in serving on the super committee. Reid's No. 3, New York Sen. Chuck Schumer, informed leadership he did not want a spot on the panel.
And Reid snubbed Conrad, who has tried to position himself in the center of the fiscal fights in the last several years.
For McConnell, Senate Minority Whip Jon Kyl (R-Ariz.) is widely expected to get the nod, given his conservative credentials, ties to McConnell and his work in the Biden group.
But if Republicans stay united, they'd need one Democrat to break ranks and back a cuts-only approach - so McConnell may want to choose a senator with bipartisan appeal who is loyal to leadership, such as Sen. Lamar Alexander (R-Tenn.) or Sen. Rob Portman (R-Ohio).
At a town hall in Winchester, Ky. on Monday, McConnell told a crowd that he wanted "significant entitlement reform" to be part of the mix that the super committee proposes. Last week on Fox News, McConnell declared that tax increases were essentially off the table.
"What I can pretty certainly say to the American people, the chances of any kind of tax increase passing with this, with the appointees of John Boehner and I, are going to put in there are pretty low," McConnell said.
Upping the rhetoric, House Majority Leader Eric Cantor (R-Va.) issued a memo to his colleagues on Monday evening to blast the S&P's suggestion that revenue-raisers be part of the mix and to insist that higher taxes should not be part of the super committee's solution.
"I believe this is what we must demand from the Joint Committee as it begins its work," Cantor said to House Republicans.
Cantor is a possible choice for the committee - and Boehner may choose similar hard-nosed conservatives to throw a bone to tea party-backed lawmakers skeptical of his handling of the debt ceiling debate.
Pelosi has not yet indicated who she will pick, but Rep. Chris Van Hollen (D-Md.), the top Democrat on the House Budget Committee, is a possible pick, according to Democratic sources. Other potential selections include Reps. James Clyburn (D-S.C.), the Assistant Democratic Leader, and Xavier Becerra (D-Calif.), the top Latino in the Democratic Caucus.
If the super committee reaches an accord, its recommendations would be quickly sent to the House and Senate floors, forcing lawmakers to cast an up-or-down vote on whether to send the proposals to Obama's desk for his signature or veto; if it fails, it could trigger an across-the-board series of cuts, including to defense programs that Pentagon officials say are vital to national security.
Many Republicans are eager to avoid deep defense cuts, providing an incentive for their party to win Democratic backing on the panel.
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Boehner : No S&P downgrade if GOP budget had passed
House Speaker John Boehner (R-Ohio) blamed President Obama and the Democrats Tuesday for the recent downgrading of the U.S. credit rating, saying that if Democrats had joined with Republicans in passing the GOP budget, which the House passed in April, ""it's unlikely anyone would be talking about the United States being downgraded today."
In a conference call with House Republicans, the Speaker told colleagues that the Standard & Poor's downgrade on Friday was not a surprise, since Republicans "have been warning (it) could happen for months."

Boehner said that without passing bold reforms addressing entitlement spending, it was all but certain that the downgrade would happen.
"S&P said in its own report Friday that entitlement reform is the key to long-term financial stability. We passed a budget through the House in April that includes entitlement reform, and cuts more than $6 trillion. The Democrat-controlled Senate and President Obama have prevented most of those reforms from happening. And that's why we have a downgrade," Boehner said in an excerpt of his prepared remarks obtained by The Hill.
He blamed Obama for creating the situation, even as the president and Democrats publicly pointed fingers at the Tea Party.
"The President and the Democratic leadership in Washington are trying to blame the tea party, because they know this downgrade is on [the
Democrats]. When we took the bold step of proposing entitlement reforms, they reacted not by embracing them and joining us, but by demonizing those proposals for political gain," Boehner said.
Democrats have said they rejected the GOP budget because it sought to privatize Medicare, cut programs geared to the poor and middle class and did not tax the wealthiest Americans. Democrats charged this week that the intransigence of the conservative Tea Party members scuttled a large deficit-reduction deal and led to the S&P downgrade.
Boehner on Tuesday, according to a leadership aide, assured rank-and-file GOP lawmakers that he is committed to transparency on the so-called supercommittee, which was created by the Budget Control Act, the last-minute deal reached to raise the debt ceiling. the supercommittee is tasked with making $1.5 trillion in budget cuts.
In the conference call, the Speaker said "from the conversations I've had with the other leaders of both parties, I can tell you there's a strong commitment to having open hearings and a public process."
Boehner announced that he would be making his three selections to the joint committee in the next few days.
House Minority Leader Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) also have three selections each to the supercommittee.
"You can be confident the people I select to represent our Conference will be people of courage who understand the gravity of this situation and are committed to doing what needs to be done," Boehner said.
He concluded his remarks by imploring Republicans to "remember this is all about jobs."
"The events of the past few days show clearly that the spending binge in Washington is a drag on our economy. Shutting down the spending binge in our government has everything to do with jobs. This is a point that needs to be made at every opportunity," the Speaker said.
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After watching a two-week shutdown of the Federal Aviation Administration, transportation advocates and congressional staffers are concerned that the federal gas tax could become the next confrontational issue that Democrats and Republicans push to the brink.
The Senate and House are in the process of considering a long-term highway bill. Passing a short-term extension while they work out the details of a longer measure would normally be considered routine, but so was a short-term extension of FAA funding.
That all changed July 23, when 4,000 FAA workers were furloughed for nearly two weeks as the House and Senate could not agree on a bill to extend the agency's funding through Congress's traditional August recess.
The recent fracas over raising the debt ceiling also underscored the degree of partisan gridlock and brinksmanship in Washington.
With the chambers far apart on their proposals for a long-term highway bill, and transportation advocates in Washington still reeling from the FAA fight, at least one Democratic aide in the Senate expressed concern that congressional Republicans would attempt to use the gas tax as leverage in the fight over the competing transportation proposals.
"There's widespread support to maintain the current rate, and there has never been serious objection in the past," the aide said. "But with [Rep. John] Mica's [R-Fla.] recent actions on the FAA bill, who knows whether House Republicans will once again compromise jobs and the economy to make a political point?"
Mica is chairman of the House Transportation and Infrastructure Committee.
The bill that authorizes the gas tax to be collected, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) bill, is currently on its seventh short-term extension, which expires Sept. 30.
Extending the FAA authorization in increments became so routine that the agency reached 20 short-term extensions, before the recent standoff and subsequent shutdown.
Some in the GOP, however, were skeptical that the gas tax would be at the center of a September showdown over the transportation bill.
"It's hard to speculate what will emerge as the big issue this fall," a Republican aide said. "Anything is possible, but I'd be surprised if it turned out to be the gas tax."
Environmental groups said Tuesday they were bracing for the worst, just in case.
"The debt-ceiling debate looms large here," Deron Lovaas, federal transportation policy director at the Natural Resources Defense Council, said. "Anything involving taxation or spending could become an issue. I think everyone is watching [anti-tax activist Grover] Norquist and his group like hawks to see what they do next."
Chris Prandoni of Americans for Tax Reform, a group founded by Norquist, said his group believes states should eventually be in charge of gas taxes and take care of their own roads, but he added that he did not think the votes were there to allow the federal gas tax to expire at September's end, and that rolling it back so quickly might be disruptive.
Instead, ATR is backing Mica's bill. ATR believes that bill - like the recent deal to raise the debt limit - would get the ball rolling toward its eventual goal of reducing the scope of the federal government.
"We view the September 30 deadline as a chance to start a sort of education campaign," Prandoni said. "Mica's bill ensures that the [Highway Trust Fund] stays solvent, and gives us the amount of time we need to transition this to the states."
Mica has proposed a six-year, $230 billion highway bill. He has pegged his proposal to the amount he says the gas tax currently brings into the trust fund.
The competing measure is sponsored by Sen. Barbara Boxer (D-Calif.), chairwoman of the Senate Environment and Public Works Committee. The Democratic proposal is a two-year, $109 billion bill.
The Laborers' International Union of North America has promised a vigorous campaign during the congressional recess to build support for Boxer's bill.
"In the debt-ceiling debate and in the [FAA] shutdown, some Republicans have shown they're willing to put politics ahead of our economy and the livelihoods of working men and women," union President Terry O'Sullivan said recently. "We will not let the highway bill be the next victim of that strategy. We need to show that America faces its challenges and doesn't run away from them."
Some transportation advocates have begun looking for alternative funding sources to increase transportation spending. A few have even called for increasing the gas tax, which is very unlikely in the current Washington environment.
The gas tax is currently 18.4 cents per gallon, not including the additional local and state fees that vary across the country.
Jack Basso, chief operating officer of the American Association of State Highway and Transportation Officials, said a halt in the collection of the gas tax would make the $30 million per day in sales taxes the FAA shutdown cost the federal government "look small."
The gas tax "brings in $100 million a day, so that's a lot of money if this thing goes away," he said.
Basso said the FAA shutdown made highway proponents "sit up and take notice" of the possibility there might be a fight to renew the gas tax, but he thought ultimately it would get done.
"I think we've got the word out that this does expire, and it needs to be addressed," he said. "I'm of the mind that it will be addressed."
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Until tomorrow,
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