Capitol Hill

This month marks the beginning of a new year and of the second session of the 110th Congress. And with Demo­crats running Capitol Hill and Republicans holding the White House, gridlock is likely to persist.

A similar predicament

Memories of Capitol Hill during the 1980s resonate today because the current balance of power between the two parties is remarkably similar to how it was then. Democratic leaders repeatedly have demonstrated that though they can pass legislation addressing some of their core priorities, such as minimum-wage legislation, they are forced to accept Republican counterproposals to finalize packages.

The situation is not unlike when former President Reagan was in office, particularly after Democrats regained control of the Senate in 1986. Nothing of significance could be passed by congressional Democrats and possibly become law unless Republicans were in basic agreement with what Democrats wanted to do, which is similar to the situation currently playing out between President Bush and congressional Democrats.

The lesson here is that even though one party may control Congress, it is almost impossible for that party to trump the power of a united minority in the Senate and a presidential veto.

This pattern will continue during the second session of the 110th Congress and affect issues of direct concern to NRCA members.

For example, Democrats would like to see a more aggressive Occupational Safety and Health Administration (OSHA), and they remain bitter that OSHA's ergonomics regulations were repealed. However, separate bills to that effect have no chance of passing in the Senate because a Republican filibuster would require 60 votes to end debate.

If Democrats try to amend the Labor Appropriations Bill by stipulating OSHA must issue more regulations, conduct more inspections and issue higher fines, Republicans will counter­attack and the president would threaten to veto.

REETA

No significant tax proposals from the Democrats can make it through Congress, either. This is demonstrated by the difficulty Democrats are having passing energy legislation, which, despite attractive tax deductions and credits for more energy-efficient construction techniques, contains tax increases that are anathema to Republicans.

However, it is to both parties' advantage to pursue tax policies that reward friendly constituent groups, especially during an election year. It is in this context that the Roofing Energy Efficiency Tax Act (REETA), H.R. 4126, has a legitimate chance to become law during this Congress.

REETA would amend Section 168 of the Internal Revenue Code by shortening the current unrealistic 39-year tax depreciation schedule for commercial roof systems to 20 years. The shorter schedule would apply only to commercial roof systems that meet the energy-efficiency requirements of ASHRAE 90.1, "Energy Standard for Buildings Except Low-Rise Residential Buildings."

REETA was introduced by Rep. Bill Pascrell Jr. (D-N.J.) and lead co-sponsor Rep. Ron Lewis (R-Ky.). Both congressmen are on the Ways and Means Committee, which has authority over tax matters. Also, REETA has broad interest-group support, including support from organized labor, and is attractive to energy-efficiency and environmental organizations.

REETA's chances

Chances for REETA's success depend upon how the larger tax and energy policy debates play out in this Congress. Despite gridlock, both parties will attempt to agree on consensus items during this election year to demonstrate an ability to get things done.

NRCA's objective during the remainder of this Congress is to add strength to REETA's position. This means adding co-sponsors and ensuring key leaders of both parties are informed about REETA and, when possible, supportive of the act. This will ensure the greatest chance for REETA to be included in broader legislation.

Lee Johnson is principal of The Lee Johnson Group, Washington, D.C., a lobbying and communications company, and former chief of staff for the U.S. Senate Republican Conference.