July 11, 2014
The House passed the FY15 Energy and Water Appropriations Act, a bill amending the Internal Revenue Code to make permanent a tax break for equipment and other asset purchases by businesses, and HR 803 the Workforce Innovation and Opportunity Act. HR 803 authorizes $58B over six years for federal workforce development programs. It was amended and passed by the Senate in June and now goes to the President for his signature. In the Senate, action on S 2363, the Bipartisan Sportsmen’s Act stalled on the floor on Thursday. The bill reauthorizes conservation programs and expands public land for hunters and anglers. The motion to invoke cloture failed by a vote of 41 to 56 with all 26 Republican cosponsors of the bill voting against cloture. The Senate did confirm the nominations of Shaun Donovan to be Director of the Office of Management and Budget and Julian Castro to be Secretary of Housing and Urban Development.
FY2015 Appropriations
House
Energy & Water
The House passed their $30.4B FY15 Energy and Water appropriations bill this week by a vote of 253 to 170. The bill boosts funding for the Energy Department’s fossil energy programs while slashing renewable energy funds by about $111 million. A number of amendments were passed including restricting the use of climate change data by the administration, adding $500,000 to the Energy Information Administration’s budget, blocking DOE from spending money to enforce efficiency standards for incandescent bulbs, preventing spending cash on consolidating or closing DOE’s National Energy Technology Lab or putting the facility’s operations into contractor hands, and prohibiting the use of federal funds to award grants or provide funding for high-efficiency toilets or indoor water-efficient toilets.
The House also rejected several amendments including one offered by Rep. Dina Titus (D-NV) that would have stripped $150M in the bill for continuing the development of the nuclear waste repository at Yucca Mountain. They also rejected several amendments that would have restored funding for renewable energy projects, prohibiting funds in the bill from being used at DOE’s loan office, and a 1-percent across-the-board cut.
The White House issued a veto threat in a Statement of Administration Policy citing concerns with funding levels (cuts to renewable energy programs) and policy riders (restrictions on cooperation with Russia on nonproliferation programs). The companion bill in the Senate stalled last month in committee when Republicans threatened to offer amendments on the administration’s carbon emissions regulations for existing power plants.
Labor HHS Education
The House Labor HHS Education Appropriations Subcommittee chairman Jack Kingston (R-GA) said this week that the outlook for marking up his $155.7 billion bill is uncertain as there are “people on both sides of the philosophical fence [who] have very intense views that are opposed to each other.” The chairman of the full committee, Rep. Hal Rogers (R-KY) said that he still hopes that the bill is marked up before the August recess, but a markup has not been scheduled yet. The House and Senate allocations are $1.1 billion apart compared to the $42 billion difference last year. Senate Appropriations Chairwoman Barbara Mikulski (D-MD) cancelled a planned full committee markup of their FY15 Labor HHS bill last month due to concerns about potential Republican amendments on the Affordable Care Act (“Obamacare”). On the House side, Kingston is competing in a July 22 Republican primary runoff in Georgia for the open Senate seat, which may be further complicating the timing of consideration of this bill.
Interior-Environment
The House Interior-Environment Appropriations subcommittee marked up their $30.2B FY15 spending bill this week cutting funding for the EPA by 9% from FY14 and holding the agency’s staffing levels to the lowest levels since 1989. The bill also prevents the EPA from regulating greenhouse gas emissions from new and existing power plants. The full House Appropriations Committee will mark up the bill next Tuesday where Democrats are expected to push back against some of these cuts and policy riders.
Senate
Sen. Barbara Mikulski (D-MD), Chair of the Senate Appropriations Committee acknowledged this week that while she would prefer to pass all twelve annual spending bills individually, time is running short and she is considering an omnibus spending measure. Senate Majority Leader Harry Reid (D-NV) had initially promised to set aside two weeks in July for consideration of the spending bills on the floor, but his most recent agenda did not include any appropriations bills. And Senate leaders had to pull their first three-bill minibus appropriations package from the floor last month due to a dispute over amendments. Chairwoman Mikulski said she still plans on using that floor time if she can find a path forward on amendments.
Emergency Supplemental Request
The White House submitted a $3.7 billion emergency supplemental spending request to Congress this week. The request included $1.1 billion for Immigration and Customs Enforcement, $433 million for Customs and Border Protection, $64 million for the Department of Justice for additional immigration judge teams, $300 million for the State Department and other international programs to support repatriation and reintegration efforts in Central America, and $1.8 billion for the Department of Health and Human Services to provide care for unaccompanied children. The request was in response to the backlog of deportation cases that has built as more than 50,000 unaccompanied minors have entered the country illegally this fiscal year.
The Senate Appropriations Committee held a hearing on the request this week, where some lawmakers expressed concerns over whether this is a start of a new trend of emergency funding requests. They were also concerned by the lack of details on how the additional funding would speed up the processing of the detained migrants and a potential lack of accountability with so many agencies involved. Sen. Jon Tester (D-MT) said he will talk to Senate Appropriations Chairwoman Mikulski next week to get his bill to overhaul the Border Patrol pay system (S 1691) added to this potential border security supplemental.
It is unclear how the House or Senate will consider the emergency funding request, but one possibility is if a continuing resolution (CR) is passed to keep the government running beginning Oct. 1, a supplemental could be combined with the CR. Conservatives who might oppose the supplemental on its own may be inclined to vote for the CR package to avoid a government shutdown. However, DHS Secretary Jeh Johnson warned Senators at the hearing that if the supplemental is not passed before the August recess, that his agency would be forced to reprogram funding from other vital Homeland Security programs to address the crisis.
Next week
Next week the House is due to take up the FY15 Financial Services spending bill on the House floor. The bill will be considered under an open rule, meaning that members can offer any amendments. The House Appropriations Committee will consider the FY15 Interior appropriations bill in full committee on Tuesday. And on the Senate side, the FY15 Defense Appropriations bill is scheduled to be marked up in subcommittee on Tuesday and full committee on Thursday.
FY2015 Appropriations Bill Status
| Appropriations Subcommittee | House Action | Senate Action |
| Agriculture, Rural Development, FDA and Related Agencies | Subcommittee: May 20Full Committee: May 29Floor: postponed | Subcommittee: May 20Full Committee: May 22Floor: postponed |
| Commerce, Justice, Science, and Related Agencies | Subcommittee: April 30Full Committee: May 8House Floor: May 29 | Subcommittee: June 3Full Committee: June 5Floor: postponed |
| Defense | Subcommittee: May 30Full Committee: June 10Floor: June 20 | Subcommittee: July 15Full Committee: July 17 |
| Energy and Water Development, and Related Agencies | Subcommittee: June 10Full Committee: June 18House Floor: July 10 | Subcommittee: June 17Full Committee: postponed |
| Financial Services and General Government | Subcommittee: June 18Full Committee: June 25Floor: Week of July 14 | Subcommittee: June 24 |
| Homeland Security | Subcommittee: May 28Full Committee: June 11 | Subcommittee: June 24Full Committee: June 26 |
| Interior | Subcommittee: July 9Full Committee: July 15 | |
| Labor, HHS, Education, and Related Agencies | Subcommittee: June 10Full Committee: postponed | |
| Legislative Branch | Subcommittee: April 3Full Committee: April 9Floor: May 1 | Full Committee: June 19 |
| Military Construction, Veterans Affairs, and Related Agencies | Subcommittee: April 3Full Committee: April 9Floor: April 30 | Subcommittee: May 20Full Committee: May 22 |
| State, Foreign Operations, and Related Programs | Subcommittee: June 17Full Committee: June 24 | Subcommittee: June 17Full Committee: June 19 |
| Transportation, HUD, and Related Agencies | Subcommittee: May 7Full Committee: May 21Floor: June 10 | Subcommittee: June 3Full Committee: June 5Floor: postponed |
Homeland Security
On Tuesday, the House passed the following three homeland security related bills on the floor under suspension of the rules:
- HR 4007, the Chemical Facility Anti-Terrorism Standards (CFATS) Program Authorization and Accountability Act of 2014 codifying and strengthening DHS’ CFATS program, which issues and enforces security standards for high-risk chemical facilities.
- HR 4263, the Social Media Working Group Act of 2014 authorizing DHS to establish a social media working group.
- HR 4289, the Department of Homeland Security Interoperable Communications Act addressing the recommendations of a November 2012 DHS IG report, which found that DHS lacks an effective governance structure to ensure interoperable communications among its components.
- HR 3488, the Preclearance Authorization Act of 2014 establishing the conditions under which the Secretary of DHS may establish preclearance facilities, conduct preclearance operations, and provide customs services outside the U.S.
Cybersecurity
S 2588 Cybersecurity Information Sharing Act
The Senate Intelligence Committee marked up S 2588, the Cybersecurity Information Sharing Act of 2014 earlier this week passing it out of committee by a vote of 12 to 3 in a closed markup. Sen. Mark Udall (D-CO) and Sen. Ron Wyden (D-OR) opposed the bill citing concerns of privacy advocates. The bill:
- Requires the Director of National Intelligence (DNI) to increase the sharing of classified and unclassified cyber threat information to the private sector, consistent with the protection of sources and methods.
- Requires federal government procedures for the receipt, sharing and use of cyber information. This includes the establishment of a “portal” managed by DHS through which electronic cyber information will enter the government and be shared with other appropriate federal entities.
- Puts in place liability protections for individuals and companies that appropriately monitor their networks or share cyber information.
The draft CISA bill has drawn criticism from both industry groups and privacy advocates who are concerned that the bill would create a loophole in privacy law allowing the government to ask companies to voluntarily turn over customer information, which could then be used in criminal investigations. They also argue that the bill is a threat to whistleblowers and lacks adequate transparency measures.
Seven amendments were adopted during the markup including a manager’s package to the bill. One amendment that was offered by Sen. Susan Collins (R-ME) added compliance with Fair Information Practice Principles language to the bill. Privacy groups said the addition of that language still wouldn’t do enough to safeguard privacy because it lacks requirements that the government take additional steps to protect sensitive information after it’s shared.
Supporters of the bill say they can get it through conference with the House-passed version, CISPA, and get something to the president’s desk if the Senate can act on its piece before recess – but hurdles from opponents remain. Supporters hope that if NSA reform passes (no certainty on that happening), some of that opposition will ease. Senate Majority Leader Harry Reid (D-NV) has not indicated if and when the bill might get called for a vote on the floor. It may be a tough privacy vote for vulnerable Democrats right before the election. And, it is unclear if Senate Homeland Security and Governmental Affairs Committee Chairman Tom Carper (D-DE) would want to hold a hearing on the bill before it goes to the floor as his committee could claim jurisdiction.
A copy of the bill can be found at:
https://www.vantagepointstrat.com/?p=227
NIST New Internet of Things Cyber Framework
The National Institute of Standards and Technology (NIST) announced the development and implementation of a new cybersecurity framework dedicated to cyber-physical systems, otherwise known as the Internet of Things. The working group will release a road map by early 2015 and complete it by summer 2015. They will also release a cyber-physical systems framework by Spring 2015. The announcement came during NIST’s first meeting (via webinar) of their cyber-physical systems working group. The overall goal of the working group is to develop a cross-industry approach to designing and implementing cyber-physical technologies that have a robust cybersecurity structure.
Political Updates
The Senate on Wednesday voted to confirm San Antonio Mayor Julian Castro to be secretary of Housing and Urban Development. The vote was 71 to 26. His nomination was supported by many Republicans and he faced little to no opposition. Castro will replace Shaun Donovan, who was confirmed by the Senate this week as the new Director of the White House Office of Management and Budget in a vote of 75 to 22.
Matt Olsen, Director of the National Counterterrorism Center for the past three years announced his resignation this week. Prior to serving at the NCTC, Olsen was the general counsel and chief legal officer for the National Security Agency and principal legal adviser to its director. He also previously served as associate deputy attorney general at the Justice Department, executive director of the Guantanamo Review Task Force, assistant attorney general for national security and special counsel to the FBI director. Olsen has not set a date to leave the job, but is expected to depart in the next few months after a successor is selected.
President Obama nominated Air Force Maj. Gen. James McLaughlin to be deputy commander of US Cyber Command and recommended he be promoted to the rank of lieutenant general. McLaughlin is currently commander of Air Force Space Command and commander of Air Forces Cyber at US Cyber Command, Joint Base San Antonio-Lackland, Texas. McLaughlin’s nomination comes as the four-year-old Cyber Command is beefing up its staff.
The President nominated Dr. Elizabeth Sherwood-Randall to be Deputy Secretary of Energy replacing Daniel Poneman who announced his resignation last month. Dr. Sherwood-Randall currently serves as Special Assistant to the President and White House Coordinator for Defense Policy, Countering Weapons of Mass Destruction, and Arms Control, a position she has held since 2013. She has also served as Special Assistant to the President and Senior Director for European Affairs at the National Security Council. Prior to joining the White House, she was a Stanford University Senior Research Scholar and Adjunct Senior Fellow for Alliance Relations at the Council on Foreign Relations.
The President nominated Joseph Nimmich to be Deputy Administrator of Federal Emergency Management Agency at the Department of Homeland Security, Anne Rung to be Administrator for Federal Procurement Policy at the Office of Management and Budget, and Alissa Starzak to be General Counsel of the Army at the Department of Defense.
The GOP confirmed this week that their 2016 Republican National Convention will be held in Cleveland, OH. They are considering the weeks of June 28 and July 18 as possible dates. Democrats are still considering Birmingham, Brooklyn, Cleveland, Columbus, Philadelphia, and Phoenix. Democrats hope to name a 2016 convention host city by the end of this year or early next year.
Next Week
The House will take up HR 5016, the FY15 Financial Services Appropriations bill as well as five tax bills – HR 2807, the Conservation Easement Incentive Act of 2014; HR 4619, the Permanent IRA Charitable Contribution Act of 2014; HR 4719, the Fighting Hunger Incentive Act of 2014; HR 3134, the Charitable Giving Extension Act; and HR 4691, the Private Foundation Excise Tax Simplification Act of 2014. The House may also consider HR 5021, the Highway and Transportation Funding Act of 2014 and an extension of the Terrorism Risk Insurance Act. The Senate will vote on the nominations of Cheryl LaFleur and Norman Bay to serve as members of the Federal Energy Regulatory Commission. The Senate will also consider S 2244, the Terrorism Risk Insurance Program Reauthorization Act of 2014.