Washington Update - 07/06/2006 (Plain Text Version)

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U.S., Canadian Trade Reps Initial Lumber Accord

U.S. Trade Representative Susan Schwab and Canadian Minister of International Trade David Emerson on July 1 initialed a text in Geneva that would govern softwood lumber imports. The treaty would require both countries to end all litigation efforts and impose a complex system of border taxes and quotas that would artificially boost lumber prices during periods of normal and slow demand and thereby harm housing affordability. In return, current duties now totaling about 11% on softwood lumber shipments into the U.S. would be eliminated. The pact may still not be signed and implemented as the official legal draft is still being developed. The Canadian Parliament, which is out of session until September, must still approve the agreement and Canadian producers must agree to drop their litigation.

Last month, NAHB testified before the Canadian Parliament urging lawmakers to reject the deal because it would force Canadian lumber producers to fight for a smaller U.S. market share and distort the marketplace. Faced with the prospect of new barriers to imports from Canada and increased volatility in supply and prices, Florida home builder Barry Rutenberg told Canadian lawmakers that NAHB feels obligated to facilitate softwood lumber imports from Europe and the use of alternative materials to protect the interests of American home builders and consumers. Rutenberg said that the best strategy for Canada to achieve free lumber trade and to receive a refund of all the duties that have been collected is to continue to pursue its legal cases through the North American Free Trade Agreement process, the World Trade Organization and the U.S. Court of International Trade. For more information, see the NBN story or contact Jason Lynn at 800-368-5242, x8307.

Supreme Court Rules Against Excessive Regulation

In a step forward for affordable housing and the battle against excessive regulation, the U.S. Supreme Court on June 19 remanded to the lower courts a decision on whether wetlands connected to actual navigable waters by ditches or drains can be regulated under the Clean Water Act. In a plurality decision, the court reversed and remanded Rapanos v. United States and Carabell v. U.S. Army Corps of Engineers back to the 6th U.S. Circuit Court of Appeals, holding that the U.S. Army Corps of Engineers' broad interpretation of "waters of the United States" was not based on a permissible construction of the statute.

NAHB will use this opinion in the courts and at the federal agencies to ensure that the regulators do not continue to abuse the authority that Congress gave to them in the Clean Water Act. On Capitol Hill, NAHB is working with appropriate committee staff to fully brief Congress on Rapanos-Carabell and what the next steps are for dealing with the ruling. To view the NBN story and an accompanying analysis by Randy Lee, chairman of NAHB’s Legal Affairs Committee, click here. For more information, e-mail Jim Tobin or call him at 800-368-5242, x8258. [return to top]

House Passes Flood Insurance Bill

Acting to bolster the National Flood Insurance Program (NFIP), the U.S. House of Representatives on June 26 voted 416-4 to approve H.R. 4973, the “Flood Insurance Reform and Modernization Act of 2006.” The measure would boost the program’s borrowing authority from $20.8 billion to $25 billion and would make other changes to reduce the need for future borrowing. The Federal Emergency Management Agency (FEMA), which runs the NFIP, estimates it will need nearly $24 billion to pay off claims resulting from the devastation of Hurricanes Katrina and Rita last year.

In a letter of support prior to the House vote, NAHB said that H.R. 4973 “strikes the proper balance in protecting the NFIP’s long-term financial stability while ensuring that federally-backed flood insurance remains available and affordable.” Addressing NAHB concerns, the measure retains the current 100-year floodplain and rejects mandatory purchase requirements for properties within the natural 100-year floodplain. View the NBN story or read the entire bill by clicking here and typing the bill number in the box in the center screen. For more information, e-mail Scott Meyer or call him at 800-368-5242, x8144. [return to top]