COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM

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1 September 19, 2014 MEMORANDUM TO: FROM: Subject: Dr. Lee A. Niblock, County Administrator Jim Davenport Trace Roller Federal Legislative Update COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM The Forest Service is seeking applications for the Community Forest and Open Space Conservation Program, which we discussed with Forest Service staff during the County s visit to Washington, DC last spring. Marion County is eligible to apply for this grant. Grants may be used for the establishment of community forests through fee simple acquisition of private forest land from a willing seller. For more information, please see Applications are due to the State Forester by January 16, If the County intends to apply for the grant, and would like our assistance in reviewing the application and obtaining congressional support, please let us know. FISCAL YEAR 2015 APPROPRIATIONS Congress this week approved a short-term continuing resolution (CR) that would fund the federal government at Fiscal Year (FY) 2014 levels through December 11, The CR is necessary since Congress has not passed any FY 2015 bills. While the CR is mostly clean, it does include some additional provisions including an extension of the Export-Import Bank authorization through June 2015, funding to help fight the Ebola crisis in Africa and an extension of the moratorium on state and local government taxing of internet sales (Internet Tax Freedom Act). The CR also extends the Temporary

2 Assistance for Needy Families Block Grant (TANF), a $16 billion program set to expire on September 30, until December 11 of this year. Congressional appropriations in both the House and Senate have indicated their intention to use the next two months to begin drafting an omnibus spending bill, similar to the $1.1 trillion package negotiated earlier this year, to fund the government through the remaining nine months of FY ARMY CORPS OF ENGINEERS SOLICITATION OF PROPOSALS FROM PUBLIC ENTITIES FOR PROPOSED FEASIBILITY STUDIES AND PROPOSED MODIFICATIONS TO AUTHORIZED WATER RESOURCE DEVELOPMENT PROJECTS The Water Resources Reform and Development Act (WRRDA) of 2014 requires the Army Corps of Engineers, for the first time, to request proposals from non-federal interests (i.e. cities, counties and public entities) for feasibility studies and modifications to authorized Corps of Engineers projects or feasibility studies. Proposals are due to the Corps of Engineers by December 3, 2014 and should be submitted to the following address: U.S. Army Corps of Engineers Attn: CECW CE (Lisa Kiefel) 441 G Street NW Washington, DC Proposals should include the following information: Provide the name of all non-federal interests planning to act as the sponsor, including any non-federal interest that has contributed or is expected to contribute toward the non-federal share of the proposed feasibility study or modification. State if this proposal is for a feasibility study or a modification to an authorized USACE project or feasibility study and, if a modification, specify the authorized project or study. State the project purpose of the proposed study or modification. Provide an estimate, to the extent practicable, of the total cost of the proposed study or modification. Describe, to the extent practicable, the anticipated monetary and nonmonetary benefits of the proposal including benefits to the protection of human life and property; Page 2 of 5

3 improvement to transportation; the national economy; the environment; or the national security interests of the United States. Describe if local support exists for the proposal. State if the non-federal interest has the financial ability to provide for the required cost share. Submit a letter or statement of support from each associated non-federal interest. Proposals will be reviewed by the Secretary of the Army to determine if the proposals meet the following criteria: Are related to the missions and authorities of the USACE; Require specific congressional authorization, including by an Act of Congress; Have not been congressionally authorized; Have not been included in any previous annual report; and If authorized, could be carried out by the USACE. If the County would like to discuss a potential project for this solicitation, please contact Jim Davenport at WATERS OF THE U.S. On September 9, the House passed legislation, the Waters of the United States Regulatory Overreach Protection Act, H.R. 5078, which would prevent the Army Corps of Engineers and Environmental Protection Agency's proposed "Waters of the U.S." rule from moving forward. Additionally, the measure would require the agencies to consult and collaborate with state and local governments on the "Waters of the U.S." rule development process. The agencies would be required to document the interactions, including those areas where consensus was reached or not reached and to submit a final report to Congress. The House-passed measure, which was threatened with a potential veto in a statement released by the White House before the vote, now faces an uncertain future in the Senate. Concerns abound over the scope of the Army Corps/EPA proposal, including its potential impact on locally owned and maintained public safety infrastructure roadside, flood control channels, drainage conveyances and stormwater ditches which are used to funnel water away from low-lying roads, properties and businesses to prevent accidents and flooding incidences. We continue to advocate that the federal government should clarify that local streets, gutters, and human-made ditches are excluded from the definition of "Waters of the U.S." Page 3 of 5

4 INTERNET TAXATION We continue to monitor key legislation in the Senate, the Marketplace and Internet Tax Fairness Act (MITFA) (S. 2609) that would combine two key issues important to local governments: (1) the Marketplace Fairness Act - allowing state and local governments to enforce existing sales taxes on remote sellers; and (2) a ten-year extension of the Internet Tax Freedom Act prohibiting local governments from collecting a tax on Internet access (typically a subscription service) until November 1, Despite MITFA s readiness for floor consideration, it is unlikely the Senate will take up the issue before the upcoming midterm elections in November. The more likely outcome is a short-term extension of the Internet Taxation Fairness Act (ITFA) to keep the law from lapsing when it expires in November, followed by potential consideration of MITFA in mid-december. An ITFA extension is included in the continuing resolution (CR) that would fund the federal government from October 1 December 11. Although an extension of this prohibition is not ideal for local governments, many are supportive of a temporary extension of ITFA to permanent extensions proposed in other bills. NEW FEDERAL BANKING REGULATIONS IMPACTING LOCAL GOVERNMENTS Earlier this month, federal regulators (Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency) voted to adopt new banking regulations which imposed new liquidity standards on banks that may impact state and local borrowing. The regulations, derived in response to the 2008 financial crisis, are set to take effect January 1, 2016 and would require banks with at least $250 billion in assets to meet new liquidity requirements in an effort to ensure that large banks are capable of funding their operations for 30 days during times of fiscal stress. Under the rule, banks that meet the asset threshold must maintain designated levels of high-quality liquid assets (HQLA), i.e., assets that can be easily converted to cash. State and local governments continue to urge regulators to classify municipal securities as HQLA. By not classifying municipal securities as such, the rules would make them less appealing to banks, making it less likely for banks to underwrite the securities and ultimately increasing borrowing costs for state and local governments. Due to a significant amount of outreach from state and local government officials, federal regulators have expressed a willingness to consider some modifications to the final rule, Page 4 of 5

5 however those determinations have to yet to be released. We will continue to monitor developments and report information as it becomes available HEALTH AND HUMAN SERVICES FUNDING OPPORTUNITIES The Department of Health and Human Services (HHS) announced that it has begun accepting applications under the Health Resources & Services Administration (HRSA) Health Center Grant Program, which provides funding to communities to improve the health of vulnerable populations in underserved communities. Specifically, the program supports a variety of community-based and patient-directed public and private nonprofit organizations that have a critical impact on the health care status of medically underserved and vulnerable populations by insuring access to comprehensive, culturally competent, quality primary health care services. These include: Community, Migrant, Homeless, and/or Public Housing Primary Care facilities. Approximately $40 million has been made available for up to 30 awards. The application deadline is October 22 nd. Additional program information can be found here, or by contacting Beth Hartmayer at (301) or BPHCSAC@hrsa.gov. Please let us know if you are interested in the program, as we would be pleased to assist with your application and work with your congressional delegation to help generate support on your behalf. Please contact us with any questions. cc: The Honorable Carl Zalak, III, Chairman The Honorable Stan McClain, Vice Chair The Honorable Kathy Bryant The Honorable David Moore The Honorable Earl Arnett Page 5 of 5