The Senate is currently negotiating a climate and social spending package. This is what most environmental lobbyists and energy interest groups are focusing on. The Senate is still in negotiations over a huge fiscal 2022 spending bill. This will have a significant impact on President Biden’s energy and environmental agenda.
The deadline for lawmakers to complete the 12 annual spending bills and combine them into one omnibus spending package is February 18. Agencies could be forced to operate at fiscal 2020 spending levels, which are largely determined by Trump’s priorities for the remainder fiscal 2022.
The outcome will decide whether EPA or the Interior Department can hire 1,000 workers each for jobs critical to achieving Biden’s conservation and environment goals. These talks will also determine whether the Department of Energy receives funding in excess of 100 million dollars for clean energy projects.
There has been little progress so far as lawmakers have been distracted by the recently passed infrastructure legislation and the still-pending climate- and social spending package. They have been held back by partisan disputes about domestic and defense funding levels, and what policy riders should they keep.
Rosa DeLauro (D.Conn.), House Appropriations chair, last year criticized the GOP’s inability to make counteroffers. She then listed a long list priorities she claimed were being damaged by the delay. The need to protect our air, water, and other natural resources is included in that list.
She said, “Investments in all these areas will be denied without an omnibus.”
Republicans want more defense spending. However, Democrats claim that Democrats haven’t provided realistic policy or spending levels. They have urged them.
It means preserving legacy riders, eliminating poison pill and being serious about the funding we will provide for our national defense. Alabama Sen. Richard Shelby, the top GOP appropriator, said that if this doesn’t happen we will be having the same conversation in Feb.
Interior-Environment
House bill: H.R. 4502: $43.4 billion. As part of the minibus package, the House was passed (E&E News PM, July 29, 2021 E&E News PM, July 1, 2002.
Senate bill: S. 3034: $44.6 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $36.8 billion.
Key agenciesEPA, Interior Department, Bureau of Land Management, National Park Service.
Outlook: After years of stagnant growth and cuts, both the Senate and House favor an increase in the workforce of EPA/Interior by as much as 1,000 workers. The EPA will likely see hundreds of millions in new spending to support environmental justice.. Interior is likely to receive funding for the Civilian Climate Corps. It is a progressive priority. Both sides are likely to support increased funding for EPA clean drinking water grants, greater money for Great Lakes preservation and increased Forest Service spending related to wildfires.
Potential sticking point: House Democrats would like to use the spending bill as a vehicle to add riders to block certain Trump-era environmental provisions or expand protections. Many of these House-backed policy initiatives are supported by Senate Democrats, but they will not survive in the chamber where the GOP will filibuster legislation.
Energy-Water
House bill: H.R. 4502: $53.2 billion. As part of a minibus package, the House was passed (E&E News PM, July 29, 2021 E&E Daily, July 13, 2002.
Senate bill: S. 2605: $53.6 billion. Approved by Senate Appropriations CommitteeE&E Daily, Aug. 5, 2021).
Current spending: $49.6 billion.
Key agencies: Department of Energy. Army Corps of Engineers.
Outlook: Fiscal 2022 will see record spending at DOE for clean and renewable energy research. Both the House and Senate appear to be poised to increase funding for Office of Energy Efficiency & Renewable Energy by approximately $4 billion, a nearly one-third increase. Both chambers support more funding for the Advanced Research Projects Agency Energy (ARPA-E), which should receive at minimum $500 million. This represents a nearly 20% increase. Trump administration wanted to eliminate ARPAE.
Potential sticking point: The Senate and the House are divided over whether to allow the Army Corps more Harbor Maintenance Trust Fund dollars to pay for various federal water projects. The House wants $2 billion from the $9.4 billion-plus HMTF to increase the Army Corps. The Senate favors keeping current rules that mainly limit HMTF dollars for harbour maintenance work with a cost sharing paid by the state and local governments. The outcome of the dispute could decide whether the Army Corps will continue to be funded at the $8 billion level or higher.
Defense
House bill: H.R. 4432: $705.9 billion. Appropriated by the House Appropriations CommitteeE&E News PM, July 29, 2021
Senate bill: S. 3023: $725.8 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $626.2 billion.
Key agency: Department of Defense.
Outlook: Fiscal 2022 should see record spending by the Defense Department’s Environmental Restoration Accounts. The House is seeking $1.3 billion for environmental cleanup efforts. While the Senate proposes $760.9million for addressing contamination from polyfluoroalkyl compounds (PFAS), $760.9million is all that the Senate has. The Democrats are also pushing the military to increase its use of clean fuels, which is one of the most important users of fossil fuels worldwide.
Potential sticking point: Fiscal 2022 funding measures were delayed by the reluctance to work on the top line for defense spending. It is the largest of 12 annual appropriations bills. After Trump’s large increases, Democrats propose a Pentagon increase of no more that 5 percent. Republicans claim that national security spending should be equal to domestic accounts, which are expected to increase by double-digits. The Senate will not be able to reach a compromise until fiscal 2022 bills are passed.
State-Foreign Operations
House bill: H.R. 4373: $62.2 billion. Passed the HouseE&E Daily, July 29, 2021
Senate bill: S. 3075: $60.5 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $55 billion.
Key agencies: U.S. Agency for International Development, State Department.
OutlookAfter being rejected by the GOP, foreign assistance will likely be used again to combat climate change. The World Bank’s Clean Technology Fund initiative and the Global Environment Facility initiative are expected to receive hundreds of millions of dollars. State Department efforts to promote biodiversity and international wildlife tracking are also expected to see large increases.
Potential sticking point: Democrats want the United States to continue contributing to the United Nations Green Climate Fund. This international effort is aimed at helping developing nations combat climate change. Republicans are keen to keep the Trump-era contribution moratorium in place and want to block congressional Democrats from proposing more than $1 million for fiscal 2022. It is likely that the United States will support the fund again after a four year hiatus.
Homeland Security
House bill: H.R. 4431: $76.2 billion. Appropriated by the House Appropriations CommitteeE&E Daily, July 14, 2002.
Senate bill: S. 3058: $71.7 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $69.8 billion.
Key agencies: The Department of Homeland Security. Federal Emergency Management Agency. Coast Guard. Cybersecurity and Infrastructure Security Agency.
OutlookCISA hike: Appropriators expect at least a 20% increase in CISA funding, following several cyberattacks on infrastructure such as the one that temporarily shut down Colonial Pipeline earlier this year. FEMA manages the Disaster Relief Fund. It is expected to increase by around 10 percent to $18.8billion. The Coast Guard will see a modest budget increase of just over $13 million, which includes money to build a third polar security cutter.
Potential sticking point: As has been the trend in recent years, immigration policies have delayed action on homeland security legislation. Trump-era policies have been reversed by the Biden Administration. They also scrapped plans to build a border wall. This angered the GOP and its base. With immigration a top issue ahead of this year’s midterms, the debate could make Homeland Security the hardest spending bill to get signed into law this year, threatening a host of other mostly bipartisan priorities.
Labor-HHS-Education
House bill: H.R. 4502: $237.5 billion. As part of the minibus package, passed the HouseE&E News PM, July 29, 2021 E&E Daily, July 12, 2002.
Senate bill: S. 3062: $220.8 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $182.9 billion.
Key agencies: The Departments of Education, Labor, and Health, as well as the Departments of Mine Safety and Health Administration and Occupational Safety and Health Administration.
Outlook: Democrats are seeking increases in OSHA’s budget to protect workers. The agency’s budget could reach $650 million. MSHA will see a modest increase of just 5.4 percent to $400 million. A record amount of money being proposed for the National Institutes of Health could double climate research spending to as much as $100 million.
Potential sticking pointAfter many of the programs and agencies it covers were cut or flat-funded under the Trump administration, Democrats want to increase spending on the largest domestic bill. Republicans will not accept proposed increases in spending by double-digit percent without similar increases for Defense Department. The fate or failure of the bill depends on whether an agreement is reached on parity in national security and domestic spending.
Agriculture
House bill: H.R. 4502: $26.5 billion. As part of the minibus package, the House was passed (E&E News PM, July 29, 2021
Senate bill: S. 2599: $25.8 billion. Appropriated by Senate Appropriations CommitteeE&E News PM, Aug. 4, 2021).
Current spending: $23.9 billion.
Key agency: The Department of Agriculture.
Outlook: The final fiscal 2022 legislation is expected to include hundreds of millions of dollars for new climate programs at USDA. This money would be used to fund more research to monitor and mitigate climate change, and to accelerate “climate smart agriculture practices,” which include the use of clean energy technologies to reduce greenhouse gas emissions from agricultural operations.
Potential sticking point: The largest threat to the Agriculture funding bill is its policy provisions. This bill usually receives bipartisan support. Some Republicans have expressed concern about labelling certain human-engineered fish genetically modified salmon. A House GOP amendment, however, that would block farm program subsidies to U.S. government-owned U.S farms, is not in the Senate bill.
Commerce-Justice-Science
House bill: H.R. 4505: $81 billion. House Floor Action: Rule Approved (E&E News PM, July 30, 2002.
Senate bill: S. 3042: $79.6 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $71.5 billion.
Key agencies: The Commerce and Justice departments.
Outlook: NOAA is poised to receive record funding of $6 billion. Lawmakers see the agency as essential for addressing climate change. They also plan to expand research and invest in three new Polar Weather Satellites. NASA could also see a major boost, with a budget of $25 billion and increases in climate research. The National Science Foundation, which oversees environmental grants, could see its budget of $1 billion increase by around 30%.
Potential sticking point: Democratic leaders did not include the Commerce-Justice-Science spending bill in a package of seven spending bills it passed this summer. After it was involved in a partisan battle over conditions for grants to local and state law enforcement officers, the measure was dropped. Some grants would have required police departments to undergo racial profiling and ban chokeholds and warrants. Republicans have compared these moves to defunding police. The final Omnibus bill will likely be negotiated behind closed door.
Transportation, Housing and Urban Development
House bill: H.R. 4502: $84.1 billion. Minibus package passed the HouseE&E News PM, July 29, 2021 E&E News PM, July 16, 2002.
Senate bill: S. 3045: $82.9 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $75.9 billion.
Key agencies: The Departments of Transportation and Housing and Urban Development.
OutlookThe bill is expected to include significant new and increased investments to reduce carbon emissions and improve resilience of infrastructure. New resiliency grants, support to synthetic aviation fuels, and low-emission transit investments would be included in the spending. Low-income housing will have lead pipes removed. This is expected to cost hundreds of millions of money. The legislation is the most targeted and could be financed with $3 billion of member-directed funding for local infrastructure projects.
Potential sticking point: While bipartisan support has been shown for transportation spending increases, Republicans have expressed concerns about federal housing assistance. HUD will likely see an increase, but it may not be as large as the Senate’s $5.7 billion proposal and the House’s $6.8 bill.
Financial Services-General Government
House bill: H.R. 4502: $28.5 billion. The House passed the minibus package that included the House (E&E News PM, July 29, 2021
Senate bill: S. 3179: $29.4 billion. Introduced in SenateE&E Daily, Oct. 19, 2021).
Current spending: $24.6 billion.
Key agencies: The Treasury Department.
Outlook: Bipartisan support is available to increase the overall bill’s spending by just below 10 percent. GSA is expected to receive $200 million to $300 millions from lawmakers to buy low-emission, electric vehicles and associated infrastructure for agencies. OMB should also have its budget increased. This could allow the reverse of cuts to career staff who oversee environmental agencies. A proposed 3.7 percent pay increase for federal workers is unlikely to be blocked by lawmakers.
Potential sticking pointRepublicans and the business community are resentful at Democrats’ decision to drop a policy riders from past spending bills that would prevent the Securities and Exchange Commission requiring corporations to disclose their political contributions. Without this restriction, the Securities and Exchange Commission could adopt rules that could eventually reveal how energy companies favor candidates who are against climate action. Campaign finance issues are always fiercely fought over spending bills but have been dropped from negotiations in recent years.
Military Construction-Veterans Affairs
House bill: H.R. 4502: $124.5 billion. The House passed the minibus package that included the House (Greenwire, June 24, 2021).
Senate bill: S. 2604: $124.4 billion. Approved by Senate Appropriations CommitteeE&E Daily, Aug. 5, 2021).
Current spending: $102.6 billion.
Key agencies: The Defense Department’s military construction and maintenance programs, and the Department of Veterans Affairs.
Outlook: Expected increases in spending on climate resilience and renewable energy upgrades at military bases. As part of ongoing base closure and realignment efforts, the final bill could contain at least $50 million for PFAS cleanup. VA spending will be used to increase treatment and research costs for veterans who have been exposed by toxic pollutants, including Agent Orange.
Potential sticking point: The most contentious issue in the world is the long-running struggle to close Guantanamo bay prison for military prisoners. Democrats have tried for years to shut down funding and close the facilities. Now that Congress has control, they are pressing the issue. If the ban is included, Republicans will be adamant and threaten to halt funding for popular military projects.
Legislative Branch
House bill: H.R. 4502: $5.9 billion. Passed the HouseE&E Daily, July 29, 2021
Senate proposal: $5.9 billion. Sent to SenateE&E Daily, Oct. 19, 2021).
Current spending: $5.3 billion.
Key agencies: U.S. Capitol. Government Accountability Office. Capitol Police.
OutlookGAO is expected to see a nearly 10 percent increase in spending to $729.3million, which will allow the hiring of nearly 200 additional staffers, including an expanded science, technology assessment, and analytics team. The Capitol Police will also receive a 17 percent increase to improve security at the Capitol and replace more 100 officers who left the force after the Jan. 6, 2021 riots. It is expected to push for a reduction in plastic waste at Capitol Hill.
Potential sticking point: There are no holdups likely for the smallest annual spending bills, as lawmakers have kept a long-standing provision that would prevent members of Congress from getting a raise.