The Recovery Act Blog

  • More News on Outreach and Meetings Regarding the Recovery Act

    Another update from Norm Eisen, special counsel to the president for ethics and government reform, in the spirit of transparency as always:
    The President has taken bold steps to enhance transparency in government, end lobbying abuses, and ensure that the government’s spending decisions are based on merit.  As we’ve mentioned in a prior post, we continue to track the implementation of the President’s unprecedented transparency rules for lobbying contacts under the Recovery Act.  Yesterday we had two meetings about the rules at which lobbyists were present.  First, we met with representatives of groups from the reform community, including those generally supportive of the policy.  A wide array of opinions was aired, with some indicating that they want the policy to stay as is, and others making a variety of suggestions for changes to make the policy even tougher.  Later in the day, we met with representatives from the U.S. Chamber of Commerce, who oppose the rules.  We heard their concerns and engaged in discussion about their particular objections.  We continue to believe that the rules are sound as a matter of law and policy, but consistent with the President’s instructions, we are using this 60-day implementation period to cultivate, and listen to, a wide range of views.  Present at the reform group meeting were:
    Nicole Austin Hillary
    Director and Counsel, Washington Office
    The Brennan Center for Justice
    Meredith McGehee
    Policy Director
    Campaign Legal Center
    Tara Malloy
    Associate Legal Counsel
    Campaign Legal Center
    Sarah Dufendach
    Vice President for Legislative Affairs
    Common Cause
    Fred Wertheimer
    President
    Democracy 21
    Scott Amey
    General Counsel
    Project on Government Oversight
    Craig Holman
    Legislative Representative
    Public Citizen
    John Wonderlich
    Policy Director
    Sunlight Foundation
    Lisa Rosenberg
    Government Affairs Consultant
    Sunlight Foundation
    Daniel Schuman
    Policy Counsel
    Sunlight Foundation
    Lisa Gilbert
    Democracy Advocate
    U.S. PIRG
    Lee Mason
    Director of Nonprofit Speech Rights
    OMB Watch
    Sheila Krumholz
    Executive Director
    Center for Responsive Politics
    Lloyd Leonard
    Director of Advocacy
    League of Women Voters
    Norm Ornstein
    Resident Scholar
    American Enterprise Institute
    Present at the meeting with the Chamber of Commerce were:
    Steven Law
    Chief Legal Officer
    Judith K. Richmond
    Associate General Counsel
    Amar Sarwal
    Staff Attorney
    In addition to Norm Eisen, White House attendees included Preeta Bansal of OMB, Mike Mongan of the Office of the Vice President, and members of their staff.

  • Transportation Projects under the Recovery Act

    Jared Bernstein, the Vice President's Chief Economist and Economic Policy Advisor, gives us this update:
    Recovery Act includes $48 billion dollars for transportation construction projects, and funding has been announced for over 2,800 projects in all 50 states.  In order to obtain feedback on transportation policy issues related to the Recovery Act, Jared Bernstein, the Chief Economist and Economic Policy Adviser to the Vice President, recently met with labor groups.  The groups raised concerns about the fact that the Act funds capital costs but not operating costs.  They presented information showing that mass transit ridership is up, and because of state and city budget cuts, mass transit operating budgets have been flat or falling.  This is leading to layoffs and service reductions.  One substantive question raised in the meeting was whether it would be possible, with legislation, to shift some capital funds over to operations.
    Present at the April 21 meeting were the following, each representing the entity noted: 
    Edward Wytkind
    President
    Transportation Trades Department, AFL-CIO 
    Larry I. Willis
    General Counsel and Chief of Staff
    Transportation Trades Department, AFL-CIO
    Brendan Danaher
    Legislative and Policy Representative
    Transportation Trades Department, AFL-CIO 
    Cynthia P. Bradley
    Legislative Affairs Specialist
    American Federation of State, County and Municipal Employees
    Ron Kloos
    International Representative
    Transportation Communications International Union 
    Frederick P. McLuckie
    Deputy Director of Legislation, Government Affairs
    International Brotherhood of Teamsters 
    Portia Reddick White
    Director of Legislative and Political Affairs
    Transport Workers Union of America

  • Update on Lobbyist Contacts Regarding the Recovery Act

    In the spirit of transparency, Norm Eisen, special counsel to the president for ethics and government reform, asked us to pass along this update on the President’s restrictions on lobbyist contacts regarding the Recovery Act.
    President Obama has made historic commitments to putting the public interest first and to cracking down on special interests and, in particular, lobbying abuses. To accomplish that, he has put forward the toughest rules in history closing the revolving door between K Street and the Executive Branch and putting contacts with lobbyists regarding projects under the American Recovery and Reinvestment Act on the internet for all Americans to see. 
    We know some people think the Administration has been too tough in keeping lobbyists out of government jobs, and too tough in making lobbyist contacts about Recovery Act projects fully transparent. We don’t think so. We think our restrictions are correct to promote the public interest ahead of special interests. As the President has noted, one of the hallmarks of being tough is that you not only talk to the people you agree with—you talk to the ones you disagree with. So we want to hear from everyone affected during the 60-day initial evaluation period for the stimulus lobbying restrictions. We have heard from those that support these rules. On Friday, we met with several groups who disagree with the rules. These groups included Citizens for Responsibility and Ethics in Washington (CREW), the American Civil Liberties Union (ACLU), and the American League of Lobbyists (ALL). Present at the meeting were the following, each representing the entity noted:
    Michael W. Macleod-Ball, Chief Legislative and Policy Counsel, American Civil Liberties Union (ACLU); Melanie Sloan, Executive Director, Citizens for Responsibility and Ethics in Washington (CREW); Adam Rappaport, Senior Counsel, Citizens for Responsibility and Ethics in Washington (CREW); David Wenhold, President, American League of Lobbyists (ALL); Kenneth A. Gross, Partner, Skadden, Arps, Slate, Meagher & Flom (representing ALL);
    and
    Norman Eisen, Special Counsel to the President for Ethics and Government Reform; Preeta Bansal, General Counsel and Senior Policy Advisor, Office of Management and Budget; Michael Mongan, Deputy Counsel to the Vice President; and members of their staffs.   
    We told them we believed the restrictions were tough but fair to make sure that lobbyist communications are as transparent as possible, and that stimulus decisions are based on the merits. They agreed with our objectives -- any differences we have are over the best means to achieve those goals. They took exception to some of the specifics of the restrictions and we had an honest exchange about our differences. We noted that others, including in the reform community, strongly support the restrictions and we have heard from them too as part of the 60 day evaluation period mandated by the President's Memorandum.

  • "A Choice Between Prosperity and Decline"

    Speaking at a wind tower production facility in Iowa today, the President laid out his vision for a new clean energy economy, independence from foreign oil, keeping pollution out of our air and water, and finally addressing the climate change problem that has been neglected for decades in Washington. The President was introduced by Richard Mulbrook, the current Maintenance Manager there -- and a former Maytag employee before the company closed its operations at the same plant. As the President explained, the transformation that happened at this plant in Iowa was a sign of the transformation that America can undergo with the right vision and the right investments:
    I just had a terrific tour of the facility led by several of the workers and managers who operate this plant.  It wasn't too long ago, as Rich said, that Maytag closed its operations in Newton.  And hundreds of jobs were lost.  These floors were dark and silent.  The only signs of a once thriving enterprise were the cement markings where the equipment had been before they were boxed up and carted away.
    Look at what we see here today.  This facility is alive again with new industry.  This community is still going through some tough times.  If you talk to your neighbors and friends, I know they -- the community still hasn't fully recovered from the loss of Maytag.  Not everybody has been rehired.  But more than 100 people will now be employed at this plant -- maybe more, if we keep on moving.  Many of the same folks who had lost their jobs when Maytag shut its doors now are finding once again their ability to make great products.
    Now, obviously things aren't exactly the same as they were with Maytag, because now you're using the materials behind me to build towers to support some of the most advanced wind turbines in the world.  When completed, these structures will hold up blades that can generate as much as 2.5 megawatts of electricity -- enough energy to power hundreds of homes.  At Trinity, you are helping to lead the next energy revolution.
    The President placed what was happening in Iowa in the context of two centuries of energy innovation in America, but noted America’s leadership in innovation had always been coupled with an alarming rise consumption. The President ran down the all-too-familiar list of problems our energy consumption and oil dependence brings, from those people face every day like prices at the gas pump, to those that have a broader but equally serious impact like the trade deficit, constraints on foreign policy, and the prospect of irrevocable climate change left as a burden for out children.
    The President tours a wind tower production facility(President Barack Obama is given a tour of the Trinity Structural Towers Manufacturing Plant by Senior Vice President, Mark Stiles, Wednesday, April 22, 2009, in Newton, Iowa. White House Photo/Pete Souza)
    As the President has stated again and again, these problems also represent a fundamental weakness in our economy which will prevent long term stability as long as we refuse to address them. And while those interests who have profited off of this weakness have aligned to defend the status quo and paint change as a danger, the President forcefully framed what this choice is all about:
    We can't afford that approach anymore -- not when the cost for our economy, for our country, and for our planet is so high.  So on this Earth Day, it is time for us to lay a new foundation for economic growth by beginning a new era of energy exploration in America.  That's why I'm here.  (Applause.)
    Now, the choice we face is not between saving our environment and saving our economy.  The choice we face is between prosperity and decline.  We can remain the world's leading importer of oil, or we can become the world's leading exporter of clean energy.  We can allow climate change to wreak unnatural havoc across the landscape, or we can create jobs working to prevent its worst effects.  We can hand over the jobs of the 21st century to our competitors, or we can confront what countries in Europe and Asia have already recognized as both a challenge and an opportunity:  The nation that leads the world in creating new energy sources will be the nation that leads the 21st-century global economy.
    America can be that nation.  America must be that nation.
    The President readily acknowledged that this is no easy task at hand, but for those who contend that this is idle idealism, the President offered a dose of reality:
    Think about this.  I want everybody to think about this.  Over the last several decades, the rest of the country, we used 50 percent more energy; California remained flat, used the same amount, even though that they were growing just as fast as the rest of the country -- because they were more energy efficient.  They put in some good policy early on that assured that they weren't wasting energy.  Now, if California can do it, then the whole country can do it.  Iowa can do it.
    He also pointed to benefits already being reaped from the Recovery Act, and the $15 billion dedicated each year in his budget for the development of clean energy sources that would amplify those gains. He discussed the jobs and other long-term economic gains of his investments in high-speed rail and other mass transit. And he also made news with one more specific announcement: "Through the Department of Interior, we are establishing a program to authorize -- for the very first time -- the leasing of federal waters for projects to generate electricity from wind as well as from ocean currents and other renewable sources."
    The President then went on to address an issue generating heated debate in Congress right now, namely climate change. While agreeing that the economy and jobs are the most urgent priority right now, he also left no doubt that climate change is extremely serious and not to be ignored any longer – he offered his solution:
    I believe the best way to do it is through legislation that places a market-based cap on these kinds of emissions.  And today, key members of my administration are testifying in Congress on a bill that seeks to enact exactly this kind of market-based approach.  My hope is that this will be the vehicle through which we put this policy in effect.
    And here's how a market-based cap would work:  We'd set a cap, a ceiling, on all the carbon dioxide and other greenhouse gases that our economy is allowed to produce in total, combining the emissions from cars and trucks, coal-fired power plants, energy-intensive industries, all sources.
    And by setting an overall cap, carbon pollution becomes like a commodity.  It places a value on a limited resource, and that is the ability to pollute.  And to determine that value, just like any other traded commodity, we'd create a market where companies could buy and sell the right to produce a certain amount of carbon pollution.  And in this way, every company can determine for itself whether it makes sense to spend the money to become cleaner or more efficient, or to spend the money on a certain amount of allowable pollution.
    Over time, as the cap on greenhouse gases is lowered, the commodity becomes scarcer -- and the price goes up.  And year by year, companies and consumers would have greater incentive to invest in clean energy and energy efficiency as the price of the status quo became more expensive.
    What this does is it makes wind power more economical, makes solar power more economical.  Clean energy all becomes more economical.  And by closing the carbon loophole through this kind of market-based cap, we can address in a systematic way all the facets of the energy crisis:  We lower our dependence on foreign oil, we reduce our use of fossil fuels, we promote new industries right here in America.  We set up the right incentives so that everybody is moving in the same direction towards energy independence. 
    As he often does he closed on a hopeful note, reminding the audience that no problem can be solved by government alone, and expressing his faith that in the spirit of Earth Day Americans will also take responsibility on themselves. He discarded the argument that Washington is simply too intractable to address problems of this magnitude, as well as "the even more dangerous idea" that there simply is no solution:
    I reject that argument.  I reject it because of what you're doing right here at Trinity; what's happening right here in Newton after folks have gone through hard times.  I reject it because of what I've seen across this country, in all the eyes of the people that I've met, in the stories that I've heard, in the factories I've visited, in the places where I've seen the future being pieced together -- test by test, trial by trial.

  • A Busy Earth Day: Van Jones Video, All-Day Live-Blog

    Today is the first Earth Day of the Obama presidency, and that carries a special significance for the White House in light of the President’s goal to create a clean energy economy that can serve as a pillar of our recovery. Green jobs were a central focus of the Recovery Act, and the President’s proposed budget will also help ensure that new industries around energy efficiency and renewables will become part of the backbone of the American economy for decades to come.  Needless to say, making a big move towards energy independence is much more than a fringe benefit.
    The President will be speaking broadly about those goals with workers at Trinity Structural Towers in Iowa, the former Maytag plant which now houses a green manufacturing facility producing wind towers.  But we also asked Van Jones, Special Advisor for Green Jobs, Enterprise and Innovation at the Council on Environmental Quality, to walk us through a local player in the emerging clean energy economy, as just one example out of thousands of what the future holds:

    This video is no longer available.

    But that’s just the beginning for the White House and federal agencies, and we will keep a running log all day as things come in. For just a few examples: Secretary of Labor Hilda Solis, who testified in the Senate yesterday on green jobs training for workers, will join CEQ Chair Nancy Sutley to shine a light on the important role that women will play in our green economy at a roundtable with 35 representatives from every imaginable sector of the economy. Several members on the cabinet will also be testifying on the Hill today in special hearings. Interior Secretary Salazar, meanwhile, will turn his focus to the National Parks and nearly $750 million in investments they got to create jobs through the Recovery Act. And of course the EPA has been running their photo and video projects all month, with much more to come today.
    Check back throughout the day.

    7:41: Finishing off the day, we have the Interior Department, which was already busy celebrating National Parks Week, holding a rooftop press conference with Secretary Salazar announced an investment of $750 million in the national park system under the Recovery Act.  The Secretary also gives us this message on the connection between America's natural beauty and America's economic future:

    This video is no longer available.

    5:43: The USDA expands on "the People's Garden": "The People's Garden is designed to provide a sampling of USDA's efforts throughout the world as well as teach others how to nurture, maintain and protect a healthy landscape. If practiced, these garden concepts can be the general public's, government's, or business' contribution to providing healthy food, air, and water for people and communities... Deputy Secretary Kathleen Merrigan officially kicked off the Earth Day event at the Whitten Building with Cheyenne River Sioux Tribe Chairman Brings Plenty who performed a traditional song and planted seeds at a ceremonial Three Sisters Garden to celebrate American Indians' contribution to American agriculture. Merrigan led volunteers and USDA staffers in planting vegetables, herbs and flowers to complete the first phase of The People's Garden."  Get more background here.

    2:50: The State Department's DipNote blog is churning out Earth Day posts faster than you can read them. For just a taste, Special Envoy for Climate Change Todd Stern talks on video about the "Focus the Nation" Clean Energy Town Halls.  The Question of the Week is posed: "How Should Western Hemisphere Nations Leverage Combined Resources To Address Shared Challenges?"  And Belinda Yong, an intern at the U.S. Mission to the United Nations in Geneva, claims her post is "arguably, the greenest diplomatic facility overseas of any country in the world."  Sounds like a challenge.

    12:10: The President's Proclamation.

    11:57: Can we still celebrate Earth Day even if we are not actually on Earth?  Yes, we can.  Also download the free NASA Earth Day, 2009 poster (6.7 MB pdf).

    11:25: The Energy Department goes all-in. Firstly, just go to Energy.gov and see what you see.  Secondly, Vice President Biden announces $300 Million in Recovery Act Funds for the Clean Cities Program, an Energy Department-led pilot program to expand the nation’s fleet of clean, sustainable vehicles and the fueling infrastructure necessary to support them.  Thirdly, Secretary Chu joins Labor Secretary Solis in an op-ed run in several papers today on building the American Clean Energy Economy: "We have an enormous, urgent environmental and economic task ahead of us, and it is one that we have ignored for far too long.  If we are going to create clean energy industry jobs in this country, break the stranglehold that foreign oil has on our economy and punish the polluters who are devastating our natural resources, then we’ve got to be honest about the difficult tasks and tough choices ahead.  It’s going to mean telling the special interests that their days of dictating energy policy in this country are over.  It’s going to mean refusing to settle for the status quo and the same ineffective policies that have held us back for over 30 years, created price shocks and fostered energy dependence.  This president is committed to tackling these challenges head on to create a clean energy policy that works for all Americans, so that we can pass on to our children and grandchildren not just a stronger economy, but a cleaner planet." 

    10:05: Pick 5! The EPA rolls out their feature Earth Day program with a productive idea worth clicking through for.  There are a lot of tips floating around on little things you can do in your own life to reduce your impact on the environment, but not every lifestyle tweak will fit every lifestyle.  So the EPA provides us a little focus -- take a look at their list of 10 and pick 5 that work for you.

    EPA Pick 5 program
     

    9:20: First installment.  The US Coast Guard has an Earth Day Twitter campaign today talking about the various ways they're trying to preserve the environment while safeguarding the open seas, including plenty of green building and energy.  Agriculture Secretary Tom Vilsack marked the day by announcing 56 communities in 34 states will get $144.3 million in loans and grants for infrastructure improvements around water availability and quality -- see the list.
      

  • A Vision for High Speed Rail

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    "I'm happy to be here. I’m more happy than you can imagine," said the Vice President, a noted rail enthusiast, before introducing the President for the release of his strategic plan for high speed rail in America.  Revolving around the $8 billion in the Recovery Act and the $1 billion per year for five years requested in the President’s budget to get these projects off the ground, the President painted the picture that will become a reality as a result of these investments:
    What we're talking about is a vision for high-speed rail in America.  Imagine boarding a train in the center of a city.  No racing to an airport and across a terminal, no delays, no sitting on the tarmac, no lost luggage, no taking off your shoes.  (Laughter.)  Imagine whisking through towns at speeds over 100 miles an hour, walking only a few steps to public transportation, and ending up just blocks from your destination.  Imagine what a great project that would be to rebuild America.
    Now, all of you know this is not some fanciful, pie-in-the-sky vision of the future.  It is now.  It is happening right now.  It's been happening for decades.  The problem is it's been happening elsewhere, not here. 
    In France, high-speed rail has pulled regions from isolation, ignited growth, remade quiet towns into thriving tourist destinations.  In Spain, a high-speed line between Madrid and Seville is so successful that more people travel between those cities by rail than by car and airplane combined.  China, where service began just two years ago, may have more miles of high-speed rail service than any other country just five years from now.  And Japan, the nation that unveiled the first high-speed rail system, is already at work building the next:  a line that will connect Tokyo with Osaka at speeds of over 300 miles per hour.  So it's being done; it's just not being done here.
    There's no reason why we can't do this.  This is America.  There's no reason why the future of travel should lie somewhere else beyond our borders.  Building a new system of high-speed rail in America will be faster, cheaper and easier than building more freeways or adding to an already overburdened aviation system –- and everybody stands to benefit.
    The inclusion of high speed rail in the Recovery Act was one of many symbols of the new vision for America and its economy that guided the plan.  As the Vice President explained in his introduction, joined by Transportation Secretary LaHood, in addition to putting Americans to work across the country it went towards several the Recovery Act’s key goals:
    And we're making a down payment today, a down payment on the economy for tomorrow, the economy that's going to drive us in the 21st century in a way that the other -- the highway system drove us in the mid-20th century.  And I'm happy to be here.  I'm more happy than you can imagine -- (laughter) -- to talk about a commitment that, with the President's leadership, we're making to achieve the goal through the development of high-speed rail projects that will extend eventually all across this nation.  And most of you know that not only means an awful lot to me, but I know a lot of you personally in this audience over the years, I know it means equally as much to you. 
    With high-speed rail system, we're going to be able to pull people off the road, lowering our dependence on foreign oil, lowering the bill for our gas in our gas tanks.  We're going to loosen the congestion that also has great impact on productivity, I might add, the people sitting at stop lights right now in overcrowded streets and cities.  We're also going to deal with the suffocation that's taking place in our major metropolitan areas as a consequence of that congestion.  And we're going to significantly lessen the damage to our planet.  This is a giant environmental down payment. 
    The report formalizes the identification of ten high-speed rail corridors as potential recipients of federal funding. Those lines are: California, Pacific Northwest, South Central, Gulf Coast, Chicago Hub Network, Florida, Southeast, Keystone, Empire and Northern New England. Also, opportunities exist for the Northeast Corridor from Washington to Boston to compete for funds to improve the nation’s only existing high-speed rail service:
    Map of proposed high speed rail projects