Washington outlook.

As a Congressional election year, 2006 was expected to be a year in which Congress might have difficulty getting much done. Given the short time in session and the tendency--or need--to focus on the politics rather than the substance of issues, there is often little forward movement in election years. In addition, the situation this year has been exacerbated by an on-going series of political scandals and continuing political conflict over the war in Iraq, which have frustrated efforts on even the small number of legislative priorities that Congress set for the year.

With respect to forest-related legislation, Congressional priorities at the start of the year included reauthorizing and funding the Secure Rural Schools and Community Self-Determination Act of 2000, further developing post-wildfire restoration legislation, completing the annual spending bill for the Forest Service and Bureau of Land Management, and beginning discussions toward the reauthorization of the Farm Bill in 2007. While Congress did pursue efforts on each of these priorities, little was resolved when it recessed for elections, and it seems improbable that much more will be accomplished this year, even if a post-election session is convened.

Broad political support has been expressed in Congress and the Administration for reauthorizing the Secure Rural Schools and Community-Self Determination Act, which expires in 2006. The problem has been where to find funding for the bill--the $450 million needed annually to fully fund the county payments program, which supports rural schools and collaborative projects on national forests. The Administration's proposal to sell off portions of the National Forest System to raise revenue for the program was rejected by the House and Senate appropriations committees. One proposal, sponsored by Congressmen Greg Walden (R-OR) and Peter DeFazio (D-OR), was an amendment to the Deep Ocean Energy Resources Act that would direct $50 million per year of new royalties collected by the federal government from offshore oil exploration to the county payments program. When this legislation stalled, Senators Ron Wyden (D-OR), Gordon Smith (R-OR) and Larry Craig (R-ID) sought and gained a commitment from Mark Rey, USDA Undersecretary for Natural Resources and the Environment, to "work with (the Senators) to enact a one-year extension of the program, at full funding levels, and find mutually acceptable offsets." While this is not the most desirable resolution--and it has yet to be completed--Senator Smith noted, "We shouldn't let the perfect be the enemy of the good."

Legislative debate this year on post-wildfire, or post-disturbance, restoration issues has focused on Representative Greg Walden's bill, the Forest Emergency Recovery and Research Act (H.R. 4200). While the bill has remained controversial since its introduction in 2005, due to concerns about the use of salvage timber sales after natural disturbances (see Washington Outlook, Winter 2005), it was passed by the House of Representatives this summer. Senator Gordon Smith (R-OR) has introduced the Forests for Future Generations Act (S. 2079), which is similar to H.R. 4200, but the Senate has yet to consider either of these bills. This year's extreme wildfire season--which already has burned nearly 10 million acres in the lower 48 states and required more than $1.5 billion in wildfire suppression costs--is creating an environment in which the Administration and others are calling on the Senate to quickly pass H.R. 4200 when, and if, it returns to session after elections. Continued controversy over salvage-sale issues and the messiness of post-election politics, however, make it unlikely to occur.

Congress got off to a fast start this year on the FY 2007 Interior Appropriations bill, which includes funding for the Forest Service and Bureau of Land Management. The House passed its bill (H.R. 5386) in mid-June and the Senate readied its version of the bill for floor action by the end of July (see Washington Outlook, Summer 2006). Other political issues intervened, however, and further efforts on this and other appropriations bills stalled, except for the Defense spending bill. Congress passed its Department of Defense Appropriations Bill in late September and attached an amendment that will fund the other appropriations bills at FY 2006 levels until November 17, 2006. We expect Congress to develop an omnibus spending bill--combining all the remaining appropriations bills into one--for quick action, either when it returns for a post-election session, or at the start of 2007.

Many non-governmental groups interested in farm policy and private land conservation geared up in early 2006 for Congressional hearings and other legislative activities involved in the development of the 2007 Farm Bill. The U.S. Department of Agriculture convened a series of public forums in late 2005 and early 2006 to gather information from around the country on issues related to the Farm Bill (see Washington Outlook, Autumn 2005). Despite the anticipation, Congressional leaders chose to delay efforts on the Farm Bill until negotiations on international trade policies were concluded through the World Trade Organization (WTO) and until they could develop greater understanding of the federal budget implications of the Farm Bill. The recent failure to reach agreement through the Doha Round of WTO negotiations has created new questions for Congress about how to proceed. Some farm groups have suggested extending 2002 Farm Bill provisions for another year, but Congressional leaders seem inclined to develop a new, multi-year Farm Bill by October 1, 2007, when the current bill expires. Congress is expected to begin framing and developing language for a new Farm Bill in early 2007. The approach that Congress takes and the shape of the new bill are likely to differ significantly depending upon who controls the House and the Senate after the coming elections.