IAWP LEGISLATIVE INFORMATION September 2005 Archives Home Page ***Weekly Update*** From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office Week of September 6, 2005 CONGRESS RETURNS TO WORK EARLY TO WORK ON CRISIS The Senate initiated action Thursday evening, September 1, on a $10.5 billion emergency fund to respond to the devastation brought by Hurricane Katrina. The House plans to finish the legislation for the appropriation today. This will be the first payment in what will be a costly, multiyear federal commitment for relief and rebuilding efforts in the Gulf Coast region. With the costs now topping $500 million per day, President Bush on Thursday asked Congress to come back early from its summer recess to "ensure that federal response and recovery efforts are uninterrupted." The President made clear that the $10.5 billion would be followed by additional requests for emergency funding as the extent of the damage in Louisiana, Mississippi and Alabama become clearer. Congress is scheduled to return to Washington on September 6 to reconvene their regular session. They have a full agenda of competing priorities after its month-long summer recess. The standard Congressional annual target adjournment date is the beginning of the federal fiscal year on October 1. But with the number of issues now confronting Congress, it is very likely Members will remain in Washington much longer. It is still unclear when the Senate might bring its Workforce Investment Act reauthorization bill to the Senate floor for consideration. The Senate will focus on the Supreme Court nomination of John Roberts, energy issues, and additional assistance for those states affected by Hurricane Katrina. Both the House and Senate must also approve a number of unfinished FY 2006 appropriations bills, including the one that funds US Department of Labor programs. Dealing with the aftermath of Hurricane Katrina could force Congress to approve remaining unfinished FY 2006 appropriations bills in the quickest way possible, likely by consolidating them into a single omnibus bill. As reported in the August 26 Bulletin, Congress must also figure out how to reauthorize welfare programs, as the latest short-term extension expires on September 30. CONGRESS EXPECTED TO FOCUS ON ENERGY ISSUES Hurricane Katrina has exposed an array of problems in the energy sector that go far beyond the damage caused by a single natural disaster. No one knows how high energy prices could rise in the coming weeks and months. The most obvious impact on consumers has been on prices at the pump, which have spiked across the country. But industry officials also warned that consumers could face higher home heating bills this winter as the effects ripple through oil and natural gas markets. Oil and gas prices were approaching record highs before Hurricane Katrina. Even after the industry recovers from the current shock, problems with international supply and demand as well as domestic refining capacity remain. Nine refineries that supply roughly 10 percent of the nation's gasoline shut down, and the oil industry evacuated thousands of employees from platforms and rigs in the Gulf of Mexico. The storm has affected critical pipelines and has cut off 95 percent of crude oil and 88 percent of natural gas production from the gulf, according to the Minerals Management Service, which overseas offshore petroleum production. Some of these issues were already on the Congressional agenda, even after lawmakers finished their work on an energy policy bill (H.R. 6) that President Bush signed into law last month. Several of Congressional committee meetings have been moved up on the calendar to address energy issues sooner. Airlines are managing their schedules and routes to conserve fuel at those airports that have not received their usual fuel shipments. So far, the airlines have been able to manage the problem without cancellations, but according to Jack Evans, Air Transport Association spokesman, that could change in the next two weeks if the situation is not improved.