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February 3, 2006

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In this Issue


Rep. John Boehner Elected House Majority Leader


Few Legislative Days in '06


President to Send FY07 Budget to Congress Next Week; Sen. Lincoln Urges Farmers As Priority


R&D “Valley of Death” on This Year’s Agenda


EPA Lists Critical Uses of Methyl Bromide For 2006


First Air Compliance Agreements For Ag Approved By EPA


Wheat Industry, Senate Democrats Want Aussie Wheat Board Suspension Reinstated By USDA


BSE UPDATE:




New Bills

 

 

Policy Directions welcomes Dr. Lester Crawford as our new senior counsel.

For more information please visit the new PDI website at www.policydirections.com.

 

Rep. John Boehner Elected House Majority Leader

Rep. John Boehner (R-OH), chair of the House Committee on Education & the Workforce and vice chair of the House Agriculture Committee, was elected GOP majority leader this week. He replaces Rep. Tom DeLay (R-TX), defeating acting leader Rep. Roy Blunt (R-MO), Rep. John Shadegg (R-AZ), and Rep. Jim Ryun (R-KS).

Insiders were surprised Boehner, who chaired the Republican Conference in the House eight years ago, took the hotly contested leadership seat away from Blunt on the second ballot. On the first ballot, Shadegg received 40 votes and Ryun, a surprise candidate, garnered only two votes. Under election procedures, the second ballot was between the top two vote getters. Boehner’s first ballot tally of 79 votes surged to 122 with Shadegg’s and Ryun’s departure; Blunt garnered 109 votes. Blunt will remain House majority whip. Boehner will give up the chair of Education & Workplace as the new majority leader, with Rep. Howard “Buck” McKeon (R-CA) most likely to assume the chair.

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Few Legislative Days in '06

With both the House and Senate back in D.C., the 2006 legislative calendar is shaping up to be short and fast paced. Both the House and Senate have set a target adjournment date of Oct. 6, designed to give lawmakers a month to campaign before Election Day. Congress is expected to be in D.C. for about 60 days of legislative business.

The 2006 House & Senate Schedule includes the following recesses:
Feb. 20 - 24, Presidents' Day – Both Chambers
March 20 – 24, St. Patrick's Day – Both Chambers
April 10 – 21, Easter – Both Chambers
May 29 – June 2, Memorial Day – Both Chambers
July 3 – 7, July Fourth – Both Chambers
July 31 – Sept. 4 – House Chambers
Aug. 7 – Sept. 4, August Recess – Senate Chambers

A compressed election-year legislative calendar and Republican interest in pushing campaign themes will leave little time to finish must-pass FY07 appropriations bills and might force Congress into a post-election "lame duck" session. Any unfinished spending bills may be pushed into a post-election omnibus package.

Appropriators in the House and Senate expect an aggressive schedule, beginning markups in May in the House and June in the Senate, and aiming to complete bills individually. But much depends on GOP leaders' floor agenda, beginning with the lobbying overhaul that has been building momentum with the indictment last year of Jack Abramoff.

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President to Send FY07 Budget to Congress Next Week; Sen. Lincoln Urges Farmers As Priority

On Monday, Feb. 6 the White House will send to Congress the President’s FY07 Budget. It is likely to carry over from last year his call for cuts in non-security discretionary spending, coupled with increases in defense and entitlement programs, such as Medicare.

In anticipation of a budget from the White House that will further cut agriculture discretionary spending, Sen. Blanche Lincoln (D-AR) this week urged President Bush to “not turn his back on America’s farmers,” saying budget cuts and disaster payments from last year remain unaddressed.

Lincoln specifically referenced past budgets sent to Capitol Hill by the White House which recommended cuts in ag spending – a “disproportionate burden” on agriculture – and asked the President to include disaster assistance spending in his FY07 budget request. Many insiders, with an eye toward 2007 Farm Bill actions by the Administration, are expecting FY07 spending recommendations to signal much deeper cuts in spending while also indicating program “adjustments” in line with World Trade Organization offers made by U.S. negotiators.

“I…ask that you reconsider your…proposals which undermine the commodity title provisions of the 2002 Farm Bill,” Lincoln wrote. “…breaking a commitment with our farm families midway through a contract is reason enough not to cut a hole through the farm safety net.”

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R&D “Valley of Death” on This Year’s Agenda

Following on his successful passage of a biodefense liability law last year, Sen. Richard Burr (R-NC) intends to push legislation this year that will further address biodefense and pandemic preparations, including the “valley of death.”

At the end of the last session, Congress passed a new biodefense liability law that includes a provision protecting makers of pandemic flu vaccines and biodefense products from lawsuits. But the final bill did not include a new agency proposed by Burr in his 14-point National Biodefense Act. Burr's bill would have created the Biomedical Advanced Research and Development Agency (BARDA), a new HHS agency to fund late-stage development of promising biodefense and flu products and push for policies to streamline their approval and procurement.

Burr is a strong advocate for the Agency, which he says is crucial to shuttling companies through the “valley of death,” the time between early research and later stage development when companies bid on contracts under the current BioShield program.

Congress is faced with a short session this year due to the elections leaving lawmakers less time to pass stand-alone bills and increasing the chances the biodefense legislation could be attached to the must-pass legislation. One vehicle for moving the legislation could be the reauthorization of The Public Health and Preparedness Act of 2002.

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EPA Lists Critical Uses of Methyl Bromide For 2006

EPA this week published its final rule on critical uses of methyl bromide for 2006, an action the agency said “will honor the U.S. commitment to obtain methyl bromide for American farmers in a manner consistent with the Montreal Protocol while protecting the ozone layer.” “Critical use” exemptions are allowed under the Montreal Protocol for uses where there are no technically and economically feasible alternatives to methyl bromide. The complete list of authorized exemptions – which are classified by crop, region and in some cases, membership in certain organizations representing methyl bromide users -- can be found at www.epa.gov/ozone/mbr, with the list of exempted uses beginning on page 24 of the rule and running through page 32.

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First Air Compliance Agreements For Ag Approved By EPA

EPA’s Environmental Appeals Board this week approved the first 20 air consent agreements for animal feeding operations (AFOs), a move to let EPA evaluate air emissions nationally, settle liability for certain past AFO violations and resolve “potential violations” of the Clean Air Act, the Superfund Act (CERCLA) and community-right-to-know laws. Some enviro groups have threatened legal action to stop the agreement process.

The agreements represent 10 applications from swine farms and 10 from egg operations. Key to the agreements – worked out among environmental groups and ag interests – is a monitoring and research study to be done by independent researchers to strengthen EPA’s data on emissions, which may lead to new compliance standards, guidelines and enforcement policies.

Under the agreements, approved operations agree to follow clean air, hazardous waste and emergency reporting laws after the research project is completed, pay $2,500 into an EPA fund and allow their operations to be monitored. The fund pays for two years of air monitoring at 28-30 farms nationally. EPA must wade through 2,681 agreements representing farms in 42 states wishing to participate in consent agreements.

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Wheat Industry, Senate Democrats Want Aussie Wheat Board Suspension Reinstated By USDA

The U.S. wheat industry and several Senators want USDA to reinstate a suspension of the AWB, Ltd., successor to the Australian Wheat Board (AWB), disallowing AWB’s use of USDA export credit guarantee programs.

AWB Ltd. is the U.S. affiliate of AWB and uses USDA export credits when it sells U.S. products. Previously, the AWB’s use of the credits was suspended as a result of the United Nations’ (UN) oil-for-food investigation when it was found AWB Ltd. made “questionable” payments for inland transportation in Iraq, according to media reports. That suspension was lifted after six days when the U.S. State Department intervened on behalf of Australia, and the Australian government is investigating whether the payments violated Australian law.

The National Association of Wheat Growers, in a January 26 letter to Secretary of Agriculture Mike Johanns asking that the suspension be reinstated, said the Australian inquiry “produced documents that demonstrate AWB’s corporate misbehavior.” Seven Democrat Senators, led by Sen. Tom Harkin (D-IA), want the suspension reinstated during the Australian investigation “until crucial questions in this matter can be fully addressed.”

Sen. Norm Coleman (R-MN), chair of the Senate Homeland Security Committee’s subcommittee on investigations, wants former Australian Ambassador Michael Thawley to testify before his subcommittee about information from the UN investigation and from Australia’s own inquiry that apparently contradicts statements Thawley made to Coleman during a 2004 meeting requested by Thawley to denounce the AWB allegations. Coleman also asked Johanns to suspend AWB Ltd.’s use of export credits until his questions are answered.

 

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BSE UPDATE

USDA Investigation of Japan Problems Almost Done

The USDA investigation of how restricted materials wound up in a U.S. shipment of veal to Japan should be completed in about a week and presented to the Japanese government, the U.S. ambassador to Japan said this week. He added that USDA is willing to let the Japanese inspect U.S. plants if that will restore trust in the U.S. system. He also said Congress has run out of patience and hoped the latest closing of the Japanese market did not spark a trade dispute.

House Agriculture Committee Chair Rep. Bob Goodlatte (R-VA) met with a delegation of Japanese legislators this week to discuss trade issues. He asked that Japan reopen its market to U.S. beef and that the Japanese delegation take action quickly.

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USDA Inspector General Cites Flaws in APHIS, FSIS BSE Systems; Department Says Most OIG Recommendations Already In Place

USDA’s operation of its APHIS and FSIS mitigation programs have kept contaminated product out of the food chain but could be improved, according to the department’s Office of Inspector General (OIG) which released an internal audit of the programs. For their part, APHIS and FSIS say most of the OIG’s 22 recommendations for improvement have already been adopted.

However, OIG continues to criticize the agencies for the voluntary nature of the BSE surveillance and testing programs, which it says makes it difficult to determine whether USDA is collecting enough samples. OIG, for instance, said APHIS did not meet its own goals on a state basis for sampling. APHIS said in some states there are few if any renderers – the primary source of samples – and that many animals move from one state to another for slaughter or rendering. On a regional basis, APHIS said, its goals were met. APHIS also said its quality control and testing procedures at its Ames, IA facility are in the process of being updated

As for FSIS, OIG said that inadequate paperwork at processing plants studied did not give sufficient evidence that BSE rules were being followed. FSIS pointed out that of the 8.8 million inspections it conducted over the period of the OIG investigation, less than 1% was likely out of compliance with BSE rules.

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Venison May Carry TSE Agent

Muscle meat of deer infected by Chronic Wasting Disease (CWD), the transmissible spongiform encephalopathy (TSE) affecting cervids, may carry the prions capable of spreading the disease, according to a report from the University of Kentucky. The UK researchers said when muscle tissue was taken from infected deer and injected into special-bred mice, the mice developed the disease. Researchers emphasized, however, “we’re a long way from showing venison is infectious,” and said there is no evidence humans can contract CWD.

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Mexico Reopens Market to Bone-In Beef

The Mexican government this week said it will resume import of U.S. bone-in beef from animals under 30 months old. Mexico opened its market to boneless beef in March, 2004. Mexico represents an $874-million market, with bone-in beef making up about $40 million.

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

H.R.4684
Rep. Robert “Bud” Cramer, Jr. (D-AL) offered legislation to amend the Small Business Act to provide for an increase in the amount of awards under the first and second phases of the Small Business Innovation Research program.

H.R.4689
Legislation introduced by Rep. Stephanie Herseth (D-SD) would amend the Federal Meat Inspection Act to provide that a quality grade label issued by the Secretary of Agriculture for beef and lamb may not be used for imported beef or imported lamb.

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Inside Track is produced as a service to clients of Policy Directions, Inc., a Washington, DC-based government relations/strategic government communications firm founded in 1995, specializing in customized advocacy on health care; food; biomedical research; biotechnology, human drug, and medical device regulation; federal nutrition policy and programs; and environmental policies and programs. For more information about PDI, please e-mail info@poldir.com.

All material © 2006 Policy Directions.

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