California Capitol Hill Bulletin

Transcription

1 THE CALIFORNIA INSTITUTE FOR FEDERAL POLICY RESEARCH 4114 Davis Place, NW, Suite 114, Washington, D.C web: California Capitol Hill Bulletin Volume 23, Bulletin 8 April 14, 2016 To expand communications between Washington and California, the California Institute provides periodic news bulletins regarding current activity on Capitol Hill and other information that directly impacts the state. Bulletins are published weekly during sessions of Congress, and occasionally during other periods. APPROPRIATIONS: SENATE SUBCOMMITTEE REPORTS ENERGY & WATER FUNDING On April 13, 2016 the Senate Appropriations Subcommittee on Energy and Water Development met for a markup of the "Energy and Water Development Appropriations Act for FY 2017." The bill was reported out by a vote of The full Appropriations Committee approved the bill the following day (see below). The legislation proposes $37.5 billion to fund U.S. Department of Energy (DOE) programs and critical infrastructure projects administered by the Army Crops of Engineers and Bureau of Reclamation. This is $355 million over the FY2016 enacted level and $261 million above the President's budget request. The bill provides added resources to strengthen the U.S. nuclear deterrence posture, ensure nuclear stockpile readiness and safety, and prepare for existing and future nuclear threats. It also promotes programs to improve American energy security and economic competitiveness. The committee rejected the President's recommendation to cut CONTENTS: Appropriations: Senate Subcommittee Reports Energy & Water Funding Appropriations: Senate Appropriations Holds Markup Appropriations: House Appropriations Reports Energy & Water Bill Appropriations: House Agriculture Subcommittee Approves FY17 Funding Resources: House Water Subcommittee Examines Western Water Issues Education: Senate HELP Looks At ESSA Implementation Manufacturing: Senate Committee Examines Advanced Manufacturing Technologies U.S. Army Corps of Engineer funding by 23% and instead approved $6 billion in funding to improve and maintain flood control projects and ensure the viability of national and regional ports and waterways. The legislation provides $1.14 billion for the U.S. Department of the Interior and the Bureau of Reclamation to help manage, develop, and protect the water resources of Western states. The bill also provides $5.4 billion for science research, an increase of $50 million above the FY 16 level, to support basic energy research, development of high-performance computing systems, and research into the next generation of clean energy sources. The legislation provides $6.4 billion for DOE environmental management activities to continue remediation of sites contaminated by previous nuclear weapons production. The legislation funds energy programs at $11.2 billion and fossil energy research and development at $632 million. The bill eliminates funding for the International Thermonuclear

2 California Capitol Hill Bulletin, April 14, 2016 Page 2 ADVISORY BOARD SUPPORTERS OF THE CALIFORNIA INSTITUTE The California Institute wishes to express its gratitude to the following donors for their generous support, without which our work would not be possible. BENEFACTORS AT&T Center for California Studies, CSUS Chevron PG&E Corporation Sempra Energy Southern California Edison SPONSORS ALL Management Corporation Assn of California Water Agencies Bay Area Economic Forum California Association of Realtors CA Council Science & Technology California Farm Bureau Federation California Federation of Teachers CA Independent Service Operator California Institute of Technology California School Boards Association CA State Association of Counties Diesel Technology Forum Metropolitan Water District of So. Calif. San Bernardino Valley MWD The Energy Foundation Experimental Reactor (ITER), saving $125 million. The Committee stated: ITER continues to crowd out other federal science investments where the United States has maintained leadership, including high performance computing and materials science energy-and-water-development-appropriations-bill APPROPRIATIONS: SENATE APPROPRIATIONS HOLDS MARKUP On April 14 the Senate Appropriations Committee had a markup of 302(b) Subcommittee Allocations; the "Energy and Water Development Appropriations Act for FY 2017;" and the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act for FY 2017." The committee approved the FY 2017 Energy and Water Development Appropriations Bill, clearing the $37.5 billion measure for consideration by the Senate. The bill was approved The committee also approved the FY 2017 Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, a measure that will provide record-level funding for veterans health care and benefits. The bill was approved b-allocations-markup-of-the-fy17-energy-and-water-developmentand-fy17-milcon-va-appropriations-bills MaryBeth Sullivan Executive Director APPROPRIATIONS: HOUSE APPROPRIATIONS REPORTS ENERGY & WATER BILL On April 13 the House Appropriations Committee met for a full committee markup of the FY 2017 Energy and Water Appropriations Bill. The bill was released on April 12 and provides annual funding for national defense nuclear weapons activities, the Army Corps of Engineers, various programs under the Department of Energy (DOE), and other related agencies. The bill totals $37.4 billion, $259 million above the fiscal year 2016 enacted level and $168 million above the President's budget request. Funding is targeted toward national security efforts, and energy and water infrastructure investments. The bill provides a total of $12.9 billion for DOE's nuclear weapons security programs, including Weapons Activities, Defense Nuclear Nonproliferation, and Naval Reactors. The bill funds the Army Corps of Engineers at $6.1 billion, an increase of $100 million above the fiscal year 2016 enacted level and $1.5 billion above the President s budget request. Included in that funding is: - $2.7 billion for navigation projects and studies, including $1.263 billion in funding from the Harbor Maintenance Trust Fund and full use of estimated annual revenues from the Inland Waterways Trust Fund, to help advance American competitiveness and export ability; and

3 California Capitol Hill Bulletin, April 14, 2016 Page 3 - $1.8 billion for flood and storm damage reduction activities, an increase of $105 million above fiscal year 2016 and $582 million above the budget request. The legislation funds $6.15 billion for environmental management activities, including $5.2 billion for Defense Environmental Cleanup to safely clean sites contaminated by previous nuclear weapons production. Energy programs within the DOE are funded at $11.08 billion. Research and development to advance coal, natural gas, oil, and other fossil energy technologies are funded at $645 million an increase of $13 million above the fiscal year 2016 enacted level. The bill includes $5.14 billion for science research, an increase of $50 million above the fiscal year 2016 enacted level. This funding supports basic energy research, the development of high-performance computing systems, and research into the next generation of energy sources. The legislation also includes $1.1 billion $131 million below the fiscal year 2016 enacted level and $27 million above the President s request for the Department of the Interior and the Bureau of Reclamation to help manage, develop, and protect the water resources of Western states. Provisions are included in the bill to lessen the effects of the California drought by relaxing some federal regulations. The bill also restricts the application of the Clean Water Act in certain agricultural areas, including farm ponds and irrigation ditches. Finally, the bill provides $150 million for the Nuclear Waste Disposal Program and $20 million for the Nuclear Regulatory Commission to continue the adjudication of DOE's Yucca Mountain License application. No amendments were offered. The bill was favorably reported to the full committee by a voice vote. APPROPRIATIONS: HOUSE AGRICULTURE SUBCOMMITTEE APPROVES FY17 FUNDING On April 13, 2016 the House Appropriations Subcommittee on Agriculture, Rural Development, FDA, and Related Agencies met for a mark up of the FY 2017 Agriculture Appropriations Bill. The bill funds agricultural and food programs and services, including food and medical product safety, animal and plant health programs, rural development and farm services, marketplace oversight, and nutrition programs. The bill totals $21.3 billion in discretionary funding, $451 million lower than the fiscal year 2016 enacted level and $281 million below the President's budget request. The bill provides $2.85 billion for agriculture research programs, including the Agricultural Research Service and the National Institute of Food and Agriculture. Included in this level is a $25 million increase for USDA s competitive research program the Agriculture and Food Research Initiative. The legislation also includes $934 million $29.6 million above the President s budget request and $36.4 million above the fiscal year 2016 enacted level for the Animal and Plant Health Inspection Service. This funding supports programs to help control or eradicate plant and animal pests and diseases. The bill provides $868 million for conservation programs. This includes $12 million for infrastructure rehabilitation to help small communities meet current safety standards for watershed

4 California Capitol Hill Bulletin, April 14, 2016 Page 4 projects. The bill also provides $1.51 billion for the Farm Service Agency to support various farm, conservation, and emergency loan programs. The bill provides $2.88 billion for rural development programs that support basic rural infrastructure, provide loans to increase opportunities for rural businesses and industries, and help balance the playing field in local rural housing markets. The legislation includes $1 billion for food safety and inspection programs and $2.7 billion in discretionary funding for the Food and Drug Administration. This includes $10 million in funding to combat Zika and Ebola outbreaks. Finally, the legislation includes discretionary as well as mandatory funding required by law, for food and nutrition programs within the Department of Agriculture. The bill provides $6.35 billion in discretionary funding for Women, Infants and Children (WIC); $23.2 billion in mandatory funding for child nutrition programs; and $79.7 billion in required mandatory spending for the Supplemental Nutrition Assistance Program (SNAP). The bill was favorably reported to the full committee. RESOURCES: HOUSE WATER SUBCOMMITTEE EXAMINES WESTERN WATER ISSUES On April 13, 2016 the House Natural Resources Subcommittee on Water, Power and Oceans met for a hearing titled "Empowering States and Western Water Users Through Regulatory and Administrative Reforms." This hearing focused on state water rights and amending the Bureau of Reclamation's title transfer process. Witnesses included Robert S. Lynch, Attorney, Robert S. Lynch& Associates; Mr. Andy Fecko, Director of Resource Development, Placer County Water Agency; Professor Reed D. Benson, Chair of the Natural Resources and the Environmental Law Program, University of New Mexico School of Law; Ms. Jan Goldman-Carter, Director of Wetlands and Water Resources, National Wildlife Federation; Mr. Lawrence Martin, Attorney, Halverson Northwest Law Group, Sunnyside Valley Irrigation District, National Water Resources Association; and Mr. Jeremy Sorensen, General Manager, Strawberry Water Users Association. Mr. Andy Fecko testified that water supplies throughout California rely on a healthy aquatic ecosystem to be reliable. He suggested that Congress implement the Modified Flow Management Standard for the Lower American River in its operations of the Central Valley Project and Folsom Reservoir. He also suggested that the federal government invest in Sacramento regional infrastructure projects that improve water supply reliability and drought resiliency, including Sites Reservoir, the Sacramento groundwater bank, and a new alternative diversion on the Sacramento River. He recommended that the federal government provide support for basin studies, development of low-interest financing initiatives, and new and expanded surface and groundwater storage. Finally, he recommended that Congress provide funding for investments in recycled water and water efficiency, projects and programs that respond to the current multi-year drought in California and catastrophic wildfires. Ms. Jan Goldman-Carter testified that the National Wildlife Federation strongly supports the "waters of the United States" rulemaking. She said that it responds to the U.S. Supreme Court's direction in SWAMCC and Rapanos, clarifies and limits the historic scope of Clean Water Act jurisdiction, includes new clarifications and exemptions that expressly exclude some waterbodies

5 California Capitol Hill Bulletin, April 14, 2016 Page 5 previously deemed "waters of the U.S.," strengthens the Clean Water Act's Federal-State cooperative federalism framework and empowers states to better protect state waters within this framework, addresses many of the concerns raised by western water stakeholders, fosters a strong economy and enjoys widespread and bi-partisan public support. Mr. Lawrence Martin highlighted the need for simplified regulations. He testified that the San Bernardino Municipal Water District uses UV lamps to kill viruses and bacteria in urban runoff water to comply with the Clean Water Act. However, to replace broken lamps the water treatment plant stops the outflow of water, endangering the Santa Ana Sucker Fish. The District is caught between compliance with the Clean Water Act and compliance with the Endangered Species Act. Mr. Martin stated that the various regulations create "confusing, overlapping, redundant, and ambiguous requirements." He suggested that the federal government propose rules, regulations and agency procedures in an open and transparent manner that encourages comment. EDUCATION: SENATE HELP LOOKS AT ESSA IMPLEMENTATION On April 12, 2016 the Senate Health, Education, Labor and Pensions Committee met for a hearing titled "Every Student Succeeds Act (ESSA) Implementation in States and School Districts: Perspectives from the U.S. Secretary of Education." The Honorable John B. King Jr., the Secretary of Education, was the only witness. Chairman Lamar Alexander (TN) opened stating that this hearing is the second of six hearings discussing oversight of the implementation of ESSA. Chairman Alexander opined that the committee has seen "disturbing evidence that the Department of Education is ignoring the law." Secretary King testified that since the bill was signed into law, the Department of Education has been listening to the many stakeholders who care about implementation including civil rights leaders, teacher and principal representatives, state and school district leaders, parents and many others. Many expressed the need for regulations and guidance from the Department in order to better understand how to implement the provisions of the new law. The Department has since proposed regulatory text that would support states and districts in measuring the progress of all students. The Department's proposal with an emphasis on "supplement, not supplant" will help districts ensure that Title 1 funds are truly supplemental, while also maintaining districts' authority to choose their own methodology to allocate state and local funds. Many Senators on the committee had questions about the "supplement, not supplant" aspect of the proposal. Senators seemed concerned that the U.S. government spends more money on wealthy kids than poor kids and that in districts with Title 1 schools and non-title 1 schools, less money is often spent on students attending Title 1 schools. Senator Al Franken (MN) added a provision to the law to allow foster kids to stay in the school that they are in, if they want to, when they change foster homes. This might require the school district to provide transportation for the child. Senator Franken asked what kind of support states would receive as they implement this provision. Secretary King stated the Department has committed to developing guidance on services for homeless students, foster care services, and English learners. s-from-the-us-secretary-of-education

6 California Capitol Hill Bulletin, April 14, 2016 Page 6 MANUFACTURING: SENATE COMMITTEE EXAMINES ADVANCED MANUFACTURING TECHNOLOGIES On April 12, 2016 the Senate Energy and Natural Resources Committee met for a hearing on the status of innovative technologies in advanced manufacturing. Witnesses included Craig Blue, CEO of the Institute for Advanced Composites Manufacturing Innovation and Director of the Oak Ridge National Laboratory's Advanced Manufacturing Office; Leo Christodoulou, Director of Engineering, Materials and Structures at the Boeing Company; Doug Ward, Director of Shipyard Development for Vigor Alaska; David Williams, Dean of Ohio State University's College of Engineering; and Deborah Wince-Smith, President and CEO of the Council on Competitiveness. Chairwoman Lisa Murkowski (AL) opened by saying that jobs in the advanced manufacturing sectors employ almost 24 million people in the United States, or 13% of the workforce, and accounts for 19% of the national GDP. She also highlighted that two million manufacturing jobs are expected to be unfilled by Dr. Craig Blue testified that in the next decade the Institute for Advanced Composites Manufacturing Innovation (IACMI) aims to lower the cost of advanced composites by 50%, reduce the energy used to make composites by 75%, and increase the ability to recycle composites by more than 95%. In order to accomplish those goals, IACMI is developing new low-cost, high-speed, efficient manufacturing and recycling process technologies and will be training the next generation composite workforce. Mr. Leo Christodoulou testified that Boeing has a "clear strategy and commitment to take action to address concerns about energy efficiency in the manufacturing process as well as in the operation of aircraft." Mr. Christodoulou cited investments such as out-of-the-autoclave composites, additive manufacturing that reduces the energy density of materials, and advanced metal machining and fabrication techniques. Mr. Christodoulou also said that Boeing operates a number of workforce training partnerships to communicate skills needs, assist in curriculum design and program implementation. Boeing often hires from the pipeline that is trained by the partner school. Ms. Deborah Wince-Smith testified that the United States has significant manufacturing competitiveness advantages. The U.S. is the world's epicenter for disruptive innovation, the largest investor in R&D, the most patents filed, and a vast amount of venture capital. Ms. Smith also stated that government policies matter to U.S. manufacturing. U.S. CEOs surveyed for the Manufacturing Competitiveness Index believe the U.S. has favorable policies around key elements of manufacturing, centered on sustainability, technology transfer, monetary control, science and innovation, foreign direct investment, and intellectual property protection. However, CEOs also believe that U.S. corporate tax rates and taxation of foreign earnings are seen as disadvantages. EC-4260-AD DF9