2014 FEDERAL AGENDA.DOCX

2014 Federal Legislative Agenda
Local governments play a critical role in the American federal system of government. As the
level of government closest to the people, they are responsible for the delivery of the majority of
government services. Whether it is public safety, transportation, community planning,
environmental stewardship, affordable housing, mental health and substance abuse treatment,
child and family assistance programs, watershed management, or countless other services;
individuals look to local governments to provide it. Broad policy and funding decisions made at
the federal level directly affect the manner in which local governments function. It is therefore
important for the Maricopa County Board of Supervisors to articulate positions and concerns to
Washington on those issues affecting local government and the residents Maricopa County
serves.
Relationship Building
A key to articulating positions and concerns is the County’s relationships with Arizona’s
Congressional delegation and the Executive Branch, so it is imperative that County officials
work to maintain and enhance these relationships. The National Association of Counties
(NACo) legislative conference in March is a great opportunity for Board members and staff to
personally interact with the delegation and Executive Branch.
Guiding Principles
Although Government Relations will brief the Board of Supervisors of activities as they occur
during the 113th Congress and seek guidance regarding important bills and amendments and
activities within government agencies, Government Relations asks that the Board consider
supporting the following guiding principles to help the Government Relations team focus its
efforts on issues of greatest concern:
Fiscal Strength and Responsibility
Maricopa County urges the federal government to recognize the unsustainable nature of the
rising national debt and its potential impact on the economic vitality of the nation. Maricopa
County urges the federal government to use a balanced approach to reduce the national debt that
does not burden counties by shifting costs of programs to counties.
Local Authority
Maricopa County urges the federal government to allow for flexibility that empowers local
communities, recognizing that locally elected officials best understand the needs of constituents.
Growth & Economic Development
Maricopa County urges the federal government to seriously consider the negative economic
impact of rules and regulations before implementation while continuing to support programs that
have a proven track record of supporting economic development, such as transportation funding.
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2014 Federal Legislative Priorities
As the guiding principles provide general direction, Government Relations asks that the Board
consider highlighting these specific issues to address community needs.
1. Clean Air Act – Environmental Protection Agency Exceptional Events Rule for PM-10
The County is significantly affected by the manner in which EPA interprets and implements
Clean Air Act provisions for addressing high levels of particulate matter (PM-10) air
pollutants due to high winds. The EPA’s Exceptional Events Rule that implements those
CAA provisions is flawed.
Government Relations proposes that Maricopa County continue working closely with local
partner agencies, the Governor's Office, the local business community, and the Arizona
congressional delegation to send a consistent message to EPA to revise its rule to provide
more clarity and flexibility to states in working with exceptional event demonstrations,
better ensure cooperation between EPA and the County, and assure reasonable and
consistent implementation of the rule by EPA, so that the County will not face continual,
reoccurring nonattainment due to exceptional events beyond its control.
2. Payment in Lieu of Taxes (PILT)
PILT provides payments to counties and other local governments to offset losses in tax
revenues due to the presence of substantial acreage of federal land in their jurisdictions. In
July 2012, President Obama signed into law PL 112-141, the Moving Ahead for Progress in
the 21st Century Act (MAP-21). Included in the legislation was additional mandatory
funding for the Payment in Lieu of Taxes (PILT) program for fiscal 2013. After
implementation of the Budget Control Act (sequestration cuts), counties received roughly
$400 million in fiscal 2013. PILT is currently authorized at $425 million for fiscal 2014.
The recently adopted fiscal 2014 budget resolution included a deficit neutral reserve
placeholder for PILT.
Western Senators failed in a recent effort to fully fund the program at the authorized level of
$425 million for fiscal 2014 in the fiscal 2014 omnibus spending measure. In response, Rep.
Kirkpatrick introduced a bill that would permanently authorize and fund the PILT program
and ensure that counties are not left in budget limbo every year due to the uncertainty of the
Congressional budget process. However, the bill does not have bi-partisan support, nor does
the corresponding bill in the Senate that was introduce by Colorado Senator Mark Udall.
Therefore, most hope is pinned on the FY 2014 funding being included in another bill such
as the Farm Bill.
Government Relations proposes that Maricopa County consider encouraging Congress
find a solution to provide a consistent and stable source of funding for counties with
federal lands in their jurisdictions.
3. Water Resources Development Act
Water Resources Development Act (WRDA) authorizes the projects and programs of the
U.S. Army Corps of Engineers and provides an opportunity for Congress to articulate
program priorities. Typically, a WRDA is passed every two years, but the last WRDA was
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passed in 2007. Programs that are typically addressed in a bill include the National Levee
Safety program and the National Dam Safety program, which includes grant assistance for
dam repairs and removal.
During the first session of the 113th Congress, the House and the Senate each passed their
versions of this bill. Negotiators hope to have a compromise bill completed in early 2014.
Both versions include provisions designed to accelerate project reviews, but the bills differ
greatly in their approach. The Senate version created a set of criteria that allows automatic
project approval, but the House insisted on greater oversight. Therefore, the House bill
authorizes 23 projects and establishes a process to select new projects that begins at the local
level with submission to the Army Corp of Engineers. If a submission meets defined criteria,
it would be included in an annual report for Congress to consider funding.
Last year, Maricopa County focused on new start funding for McMicken Dam, but
depending on which version of the bill prevails, Maricopa County may need to alter its
course. For instance, Maricopa County may want to focus more on project review funding
because Maricopa County recently had to pay for an expedited review of a Corps project that
the Corps did not have funds to review. The project was Corps project that Maricopa County
simply operates.
Government Relations proposes that Maricopa County consider supporting the Corps
using a balanced approach that completes projects at the same time it begins the approval
process for new projects, so the pipeline has a constant flow of projects, including new
starts and Corps projects.
4. Transportation Funding – Expedite Review of Local Government Federal-aid Projects
Despite continuing discussion and proposal of streamlining of environmental and other
processes, the reality is the requirements are actually increasing and delays in approving
federal projects are increasing. More resources are needed to decrease the time needed to
process local government federal-aid project reviews and approvals, because states are
inadequately funded and staffed to complete reviews in an expeditious manner. When real
projects get “out the door”, they provide jobs and fuel economic growth. States, local
governments, consultants, contractors and the general public all benefit.
Government Relations proposes that Maricopa County consider supporting the creation of
a federal funds pool that would be dedicated solely to fund state DOT reviews and
approvals of local federal-aid projects.
5. Transportation Funding – Highway Trust Fund
With MAP-21 expiring on September 30, 2014, the Congress is facing a need to reauthorize
the federal surface transportation programs. A key issue identified by NACo and others is
funding. The new authorization must be adequate to address transportation needs and make
the Highway Trust Fund solvent. The American Association of State Highway and
Transportation Officials (AASHTO), the Associated General Contractors of America (AGC),
National Conference of State Legislatures (NCSL), National Association of Counties
(NACo), National League of Cities (NLC), the League of Arizona Cities and Towns
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(League), the Arizona Farm Bureau Federation (Bureau), Intelligent Transportation Society
of America (ITS) and the American Trucking Associations (ATA) have all offered potential
solutions. The following table depicts the various methods these organizations support as a
means of increasing federal funding:
Credit
Increase Annual Vehicle Assistance,
Federal Highway Miles Public- Tax Other
Gas Tax User Traveled Private Incentives, Innovative
Organization & Motor Vehicle (VMT Partnerships Financing Funding
/Agency Fuel Tax Fee Fee) (PPPs) Tools Mechanisms
AASHTO X X X X
AGC X X X X X
ATA X
NACo X X
NCSL X
NLC X X X X
Transportation Reauthorization acts since 1991 have focused largely on metropolitan areas
and urban needs. Therefore, rural communities’ needs have steadily increased over time,
including rural areas adjoining metropolitan areas such as unincorporated Maricopa County.
Government Relations proposes that Maricopa County consider supporting the
reauthorization of the federal transportation program and for components to include the
streamlining of federal environmental and project review and to increase the role of local
officials in funding decisions.
6. Federal Lands During Government Shutdowns
On October 1, 2013, the federal government shut down. Therefore, Tonto National Forest
officials shut down several locations that Maricopa County residents regularly use for
recreational activities. National Parks officials also closed the Grand Canyon. The economic
impact on tourism was significant and the State of Arizona had difficulty getting the federal
government to refund it when it covered the expenses related to re-opening the Park.
Government Relations proposes that Maricopa County consider supporting legislation that
would, during a federal government shutdown, allow local governments to enter into
agreements under which the federal government may accept funds to reopen a local
National Park, National Wildlife Refuge, or National Forest, and require the federal
government to reimburse local governments for related expenses upon reopening of the
federal government.
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Issues of Interest to be Monitored
The first session of the 113th Congress was dominated by highly visible and extremely
controversial issues, including gun control legislation, immigration reform and the
implementation of the Affordable Care Act. Ultimately, a very polarized climate developed and
resulted in a federal government shutdown in October. Therefore, several issues Maricopa
County watched develop during the 112th Congress did not receive any significant attention and
therefore, no viable solutions developed. With elections in November and a rather limited
legislative calendar, these issues may remain in the shadows. Therefore, Government Relations
will watch the following matters closely and brief Board members if viable solutions begin to
gain traction:
1. Waters of the United States
We are awaiting the Environmental Protection Agency's (EPA) publication of a proposed
rule that will clarify which U.S. bodies of water are protected under the Clean Water Act
(CWA). In April 2011, the EPA and the U.S. Army Corps of Engineers issued guidance
designed to implement the U.S. Supreme Court’s ruling in Rapanos v. United States, in
which a highly divided court pared back the agencies’ jurisdiction under the CWA. Despite
the ruling, the agency said it would be able to increase its jurisdiction over federally
protected waterways under the guidance. After receiving hundreds of thousands of public
comments — many of them critical — the agency decided to undertake a formal rulemaking
based on the guidance. Publication of draft rules was expected in 2012, but did not occur.
The forthcoming rules could face challenges in Congress and the courts, with concerns that
they could give the EPA and the Army Corps increased discretion under sections 401 and
404 of the CWA, which require permitting for dredging, filling, and discharging into federal
waters.
2. Sequestration - Defense Spending Cuts
In 2012, estimates indicated sequestration of non-defense discretionary spending could have
led to approximately $9.4 million in cuts to Maricopa County programs. Cuts were not that
severe but programs did see cuts, including Head Start programs, Low Income Home Energy
Assistance programs. Housing and Urban Development vouchers, Community Development
Block Grants, and Workforce Investment Act Grants. Last year, Maricopa County focused
its attention on Homeland Security Grants and Justice Program Grants such as JAG grants,
Juvenile Accountability Block Grants, and Second Chance Act funding because these
programs have the greatest impact on public safety. Government Relation will monitor any
budget deals that could impact any of these County programs.
3. Sequestration - Non-Defense Discretionary Spending Cuts
Sequestration is a result of the Budget Control Act that became law in August of 2011. The
Budget Control Act was a compromise that helped avoid the first-ever federal government
debt default by raising the debt ceiling. The bill created the joint Congressional committee
that came to be known as the “Super Committee” and charged it with finding at least $1.2
trillion in spending reductions. The required super majority of the Committee failed to agree
to reductions, so $109 billion across-the-board spending cuts were scheduled to occur
automatically in January 2013, with a total of $1.2 trillion in cuts equally divided between
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defense and non-defense discretionary spending over 10 years; this is the a mechanism
referred to as “sequestration.”
The budget deal that Congress passed in December 2013 provided some relief from
sequestration by restoring about $63 billion in funding over fiscal years 2014 and 2015.
Recognizing that defense spending is a significant part Maricopa County’s economy,
Government Relations will continue to monitor sequestration, paying special attention to any
potential cuts that would negatively impact the F-35 mission at Luke Air Force Base and/or
Arizona’s defense contractors.
4. Healthcare Coverage for Incarcerated Individuals
According to the National Commission on Correctional Health Care, a substantial number of
people that are booked into county jails have serious behavioral and/or medical needs. The
Affordable Care Act (ACA) allows individuals who are incarcerated, but pending disposition
of charges, to remain on health insurance provided through healthcare exchanges until
convicted. This could be a great cost savings to Maricopa County, so Government Relations
will continue to monitor the implementation of the ACA.
5. Clean Air Act – Environmental Protection Agency (EPA) Regional Haze
In November 2012, the EPA reduced the limit of nitrogen oxide power plants may emit each
year beginning in 2017. Although the three power plants impacted by these regulations are
not in Maricopa County, energy within Maricopa County could rise as result of this
regulation. A fourth power plant outside of Maricopa County is facing similar regulations
that could increase water costs to Maricopa County residents through an increase in energy
costs for the Central Arizona Project. In addition, the utilities that depend on these four
power plants may have to increase the production within Maricopa County, which could have
an impact on air quality.
6. Clean Air Act –Transport of Air Pollution
Currently, the Clean Air Act (CAA) requires that EPA review each national ambient air
quality standard (NAAQS) once every five years. EPA will be proposing a revision to the
ozone standard this year that we anticipate will make the standard stricter. As the standard is
ratcheted down, transport of ozone pollution from other areas becomes an issue in the valley
and for other areas in the West. For example under certain meteorological conditions, ozone
generated in California and across the border in Mexico drifts into the county and contributes
to high ozone episodes here. On many days as much as 50% of our ozone problem comes
from outside the county. In turn, Nevada and Colorado both point to the Phoenix ozone
plume as a contributor to their high ozone episodes.
These circumstances will require more regional cooperation if we are eve to have a chance at
meeting the standard. In addition, EPA leadership and action on federally controlled sources
such as fuels, vehicles, and lands are absolutely essential—as these sources are outside state
and local control. Note—if the county is unable to meet this standard, a number of negative
consequences ensue. Under the structure of the Clean Air Act (CAA), the county will be
subject to even more onerous controls. In addition, the CAA imposes lower permit
thresholds each time the county fails to meet its attainment date and these lower permit
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thresholds impose complex permitting requirement on even smaller sources. This makes the
county less attractive to new business. Under the CAA, if the county fails to meet these
requirements or fails to meet attainment dates, it imposes sanctions such as withholding
federal highway funds, increasing major source (new permit) offset ratios and higher
emission fees for larger sources. Ensuring EPA recognizes western as well as eastern issues
in that rulemaking will be critical for Maricopa County.
7. National Dam Rehabilitation Program
Natural Resources Conservation Service (NRCS) National Dam Rehabilitation Program (The
Watershed Rehabilitation Program), authorized by Congress in 2000, applies to the Flood
Control District’s 16 Natural Resources Conservation Service (NCRS) sponsored dams.
To date, NRCS has funded $31 million for the overall rehabilitation of three NRCS dams
managed by the Flood Control District (one completed, two in progress) under Project cost
share agreements. Three additional NRCS dams managed by the District are also currently
planned for rehabilitation/replacement under this Program. The additional funding need
under this federal dam rehabilitation program to complete the work on these dams is
currently estimated at $80 million. The District has found that these dams prioritize very
highly in funding allocations from the national budget for this program. The reason for this
is primarily because of the significant number of people protected by the dams (thousands vs.
tens for most NRCS Dams). However, the funding of this national program over the last
several years ($15 million to $20 million per year nationally) has been significantly lower
than the national need. Therefore, if this underfunding of the national program continues, it
is expected that significant federal underfunding for the District’s dam rehabilitation projects
would occur.
8. Immigration Reform
Both the President and the Senate proposed comprehensive immigration reform plans in
2013. Elements of the plans included creating a pathway to citizenship for undocumented
immigrants, increasing availability of visas to skilled workers, implementing an employer
verification program, and creating a guest-worker program for laborers and agricultural
workers.
There were several potential impacts on Maricopa County, including increase costs in
County jails and court system, but none of the plans became law due to ongoing political
fights. However, in December, Speaker of the House John Boehner hired Senator John
McCain’s former Chief of Staff to lead House immigration efforts, so this could indicate the
issue will be back on the House agenda in 2014.
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