This report discusses major decisions on clean air issues facing the courts and the executive branch in 2006. One focus will be EPA's recent proposal to strengthen air quality standards for fine particles. Other issues of continuing interest are EPA's 2005 decisions limiting interstate transport of air pollution and establishing cap-and-trade systems for emissions from coal fired power plants, and the agency's proposed changes to New Source Review.

This report provides information about the Climate Change Legislation in the 109th Congress.climate change and greenhouses were issues in the 109th congress as they have been in the past congress.

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Major amendments to the Clean Air Act were among the first items on the agenda of the 109th Congress, with S. 131 (the Clear Skies Act) scheduled for markup by the Senate Environment and Public Works Committee March 9. The most prominent air quality issues discussed in this report are; Clear Skies / Multi-Pollutant Legislation, Mercury from Power Plants, New Source Review (NSR), MTBE and Ethanol, Ozone Nonattainment Area Deadlines, Conformity of Transportation Plans and SIPs, Hurricanes Katrina and Rita.

Congress has recently focused legislative attention on narrow bills to extend or modify selected Clean Water Act (CWA) programs, rather than taking up comprehensive proposals. In the 109th Congress, the Senate Environment and Public Works Committee has approved S. 1400, a bill authorizing $20 billion in federal grants to capitalize state clean water infrastructure loan programs. Also, a House committee has approved bills to reauthorize several Clean Water Act programs: H.R. 624 would provide $1.5 billion in grants over six years for sewer overflow projects; H.R. 1359 would extend a pilot program for alternative water source projects; H.R. 1721 would reauthorize coastal water quality programs; and H.R. 3963 would extend the Long Island Sound Program.

This report provides brief summaries of the issues in the 2005 reauthorization legislation, including (1) the market in security futures, or futures contracts based on single stocks, which were authorized by the CFMA, but trade in much lower volumes than their proponents had hoped, (2) regulation of energy derivatives markets, where some see excessive price volatility and a lack of effective regulation, and (3) the legality of futures-like contracts based on foreign currency prices offered to retail investors.