Defense Officials Describe Negative Impact of Sequester; Reports Allege NSA Eavesdropping on World Leaders; Afghan Council Considers Status of Forces Agreement

Executive and Legislative Branch Activity

Budget and the Sequester

Last week in congressional hearings, defense officials described the negative impact the second round of sequestration will have on the Pentagon. The Defense Department, like all government agencies, is currently operating under a continuing resolution (P.L. 113-46). Unlike other federal agencies, the Pentagon has never operated under a year-long continuing resolution. Many expect the Defense Department will eventually get a separate funding bill.

The House-Senate budget conference will get underway this week. The budget conferees will have six weeks to broker consensus on funding the government beyond January 15, 2014, and avert the second round of automatic cuts to the Pentagon under the sequester (which also kicks in on January 15). Last week, House Armed Services Republicans sent a letter to the budget conferees advocating for $552 billion for national defense programs. This is $54 billion more than the $498.1 billion allowed by the 2011 Budget Control Act. Nine out of 29 of the budget conferees are Members of Congress with defense committee assignments: Senate Armed Services Committee (SASC) Republicans Lindsey Graham (SC), Kelly Ayotte (NH), Jeff Sessions (AL) and Roger Wicker (MS); SASC Democrats Bill Nelson (FL) and Tim Kaine (VA); SASC Independent Angus King (ME); House Appropriations Defense Subcommittee member Rep. Tom Cole (R-OK) and Senate Appropriations Defense Subcommittee members Sens. Graham (R-SC) and Patty Murray (D-WA).  Sen. Murray co-chairs the budget conference committee with Rep. Paul Ryan (R-WI).

National Security Agency

Reports emerged last week that the National Security Agency (NSA) allegedly eavesdropped on the phone calls of at least 35 world leaders. The Senate Intelligence Committee will hold a closed door meeting this week on competing NSA-related bills that might be considered in that panel. Senate Judiciary Committee leaders are expected to unveil their bipartisan measure, which will also address NSA initiatives.

Afghanistan

Late next month, an Afghan council is reportedly scheduled to decide whether to approve a status of forces agreement to allow some U.S. forces to stay in the country beyond next year with legal immunity from prosecution in Afghan courts.

This Week’s Hearings:

  • Tuesday, October 29: The House Armed Services Committee will hold a hearing titled “Twenty-five Years of Acquisition Reform: Where do we go from here?”
  • Tuesday, October 29: The House Armed Services Oversight and Investigations Subcommittee will hold a hearing titled “Report from Special Inspector General for Afghanistan Reconstruction: Challenges to Securing Afghan Women’s Gains in a Post-2014 Environment.”
  • Tuesday, October 29: The House Armed Services Strategic Forces Subcommittee will hold a hearing titled “Nuclear Weapons Modernization Programs: Military, Technical, and Political Requirements for the B61 Life Extension Program and Future Stockpile Strategy.”
  • Tuesday, October 29: The House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation will hold a hearing titled “Coast Guard and Maritime Transportation Authorization Issues.”
  • Wednesday, October 30: The House Oversight and Government Reform Committee will hold a hearing titled “A Culture of Mismanagement and Wasteful Conference Spending at the Department of Veterans Affairs.”
  • Wednesday, October 30: The House Homeland Security Subcommittee on Oversight will hold a hearing titled “Facility Protection: Implications of the Navy Yard Shooting on Homeland Security.”
  • Thursday, October 31: The Senate Homeland Security Committee will hold a hearing titled “The Navy Yard Tragedy: Examining Government Clearances and Background Checks.”

Student Privacy Protections; President’s Expected Under Secretary of Education Nominee

Legislative Activity

Student Privacy Protections

Sen. Ed Markey (D-MA) sent a letter Tuesday, October 22 to Education Secretary Arne Duncan requesting more information about student privacy protections. The letter acknowledged the potential for the collection, analysis, and storage of K-12 students’ academic records, but expressed concerns about putting such sensitive information in private hands. The letter specifically asks the Department of Education (the Department) to submit the following information by November 12:

  • Why the Department made changes to the Family Educational Rights and Privacy Act (FERPA) regulations in 2008 and 2011, allowing for the outsourcing of student data, and whether the Department did any analysis on student privacy prior to those changes;
  • Whether the Department assessed the types of information shared with third-party vendors and whether parents should control such information;
  • Whether the Department issued standards or guidelines to schools for protecting the privacy of student records stored and used by private companies;
  • Minimization requirements for unnecessary information held by private companies;
  • Whether and how students and their families have the right to access their personal information held by private companies;
  • What the Department is doing to mitigate any risks involved with third parties holding students’ personal information;
  • Whether and what types of security measures are in place for third parties with access to student data; and
  • Whether and how the Department monitors whether third parties are safeguarding students’ personal information.

Upcoming Hearings:

  • Thursday, October 31: The Senate Health, Education, Labor, and Pensions (HELP) Committee is scheduled to hold a second hearing in the Higher Education Act (HEA) reauthorization series titled, “Attaining a Quality Degree: Innovations to Improve Student Success.” Stakeholders are invited to submit comments prior to the hearing via email to hea_reauth113@help.senate.gov. We expect additional HEA hearings to be announced in future weeks, covering issues such as financial aid, diversity, teacher preparation, the state and federal roles, and other topics.

Regulatory Activity

College Affordability Proposal

Secretary Duncan noted that the Department will reschedule its planned meetings with higher education stakeholders over the next two months to solicit feedback concerning its college affordability plan proposed in August, including how to develop the new college ratings system proposed in the plan. The Department announced the first forum, which is free and open to the public, will take place November 6 at The California State University-Dominguez Hills in Carson, CA. Stakeholders who wish to present comments at this and other open forums must send an email three days in advance to collegefeedback@ed.gov with the subject “Open Forum Registration.” We expect additional forums to be announced soon on the Department’s College Affordability and Completion Website: www.ed.gov/college-affordability.

Education Department Leadership

President Barack Obama is expected to nominate Ted Mitchell, the CEO of NewSchools Venture Fund and the former president of Occidental College, as his Under Secretary of Education. Mitchell will fill Martha Kanter’s role, who announced her departure in August.

Gainful Employment Regulations

After a delay caused by the government shutdown, the Department’s negotiated rulemaking committee on gainful employment will hold its second and final public meeting from November 18-20.

Rep. Upton and Rep. Green Introduce Energy Infrastructure Project Reform Legislation

Legislative Activity

Rep. Upton and Rep. Green Introduce Energy Infrastructure Project Reform Legislation

Last Tuesday, October 22, House Energy and Commerce Committee Chairman Fred Upton (R-MI) and Rep. Gene Green (D-TX), along with a bipartisan group of original cosponsors, introduced the North American Energy Infrastructure Act (H.R. 3301). The legislation would eliminate the State Department’s authority to approve an energy infrastructure project, defined as an oil or gas pipeline or electric transmission facility that crosses the U.S.-Canadian or U.S.-Mexican border, and instead delegate that responsibility to the Federal Energy Regulatory Commission (FERC), Department of Energy (DOE), or the Department of Commerce, depending on the nature of the project. H.R. 3301 also would require the relevant government agency to approve an application unless it finds that the project is not in the national security interests of the United States. Under current law, the State Department may approve a project if it deems the project to be in the national interest. Finally, the draft bill would clarify that energy infrastructure projects covered under the legislation are not “major federal actions” subject to the National Environmental Protection Act (NEPA).

This Week’s Hearings

  • Tuesday, October 29: The Energy and Commerce Committee will hold a hearing titled “EPA’s Regulatory Threat to Affordable, Reliable Energy: The Perspective of Coal Communities.”
  • Tuesday, October 29: The Energy and Commerce Committee also will hold a legislative hearing to examine H.R. 3301, the North American Energy Infrastructure Act.

Regulatory Activity

EIA Releases New Analytic Tool for Shale Production

Last Monday, October 21, the DOE’s Energy Information Agency (EIA) unveiled a new tool to measure U.S. production output of oil, with a focus on drilling in the six shale regions responsible for 90 percent of domestic oil, in its monthly “Drilling Productivity Report.” The first report shows that production is up in the six shale regions, in particular oil production in the Permian Basin and natural gas production from the Marcellus Shale.

State Department Articulates Goals For 2015 Climate Summit

Last Tuesday, October 22, the State Department’s Special Envoy for Climate Change, Ambassador Todd Stern, delivered a speech in London at the Chatham House titled “The Shape of a New International Climate Agreement.” During his speech, Ambassador Stern outlined the State Department’s goals for achieving a legally enforceable international climate change agreement by the end of 2015, and noted that the United States will seek an agreement that contains a “supple architecture that integrates flexibility with strength” that does not contain a strict timeline to achieve targets for limiting carbon emissions. He indicated that the U.S. government will push for a flexible package that will be “internationally legally binding in all respects” and applicable to all members of the international community.

NRC Reschedules Spent Nuclear Fuel Meetings

Due to the recent government shutdown, the Nuclear Regulatory Commission (NRC) was forced to postpone the first five “waste confidence” meetings planned to inform the public comment period for the commission’s proposed rule to govern storage of spent nuclear fuel. The NRC rescheduled three of those meetings last Monday, October 21. The three meetings now will take place in Oak Brook, Illinois, Carlsbad, California, and San Luis Obispo, California on November 12, 18, and 20, respectively. The NRC is still working to confirm new times for waste confidence meetings in Perrysburg, Ohio, and Minnetonka, Minnesota.

EPA Releases Greenhouse Gas Emissions Data from Large Facilities & U.S. Offshore Wind Market and Economic Analysis

Legislative Activity

House Passes Water Resources Reform and Development Act

Last week, the House passed its Water Resources Reform and Development Act (WRRDA), which provides federal funding for water and water-related infrastructure projects. The Senate passed its Water Resources and Development Act legislation in March. A conference committee will now be appointed to work out differences between the House and Senate bills. Congress last passed a WRDA bill in 2007.

This Week’s Hearings:

  • Tuesday, October 29: The House Natural Resources Committee, Subcommittee on Water and Power, will hold an oversight hearing titled “A Roadmap for Increasing our Water and Hydropower Supplies: The Need for New or Expanded Multi-Purpose Surface Storage Facilities.”
  • Tuesday, October 29: The House Natural Resources Committee, Subcommittee on Public Lands and Environmental Regulation, will hold an oversight hearing concerning federal land management agencies.
  • Tuesday, October 29: The House Science, Space and Technology Committee, Subcommittee on Environment and Subcommittee on Energy, will hold a joint hearing titled “EPA Power Plant Regulations: Is the Technology Ready?”
  • Tuesday, October 29: The House Energy and Commerce Committee, Subcommittee on Oversight and Investigations will hold a hearing titled “EPA’s Regulatory Threat to Affordable, Reliable Energy: The Perspective of Coal Communities.”

Regulatory Activity

EPA Releases Greenhouse Gas Emissions Data from Large Facilities

The U.S. Environmental Protection Agency (EPA) has released its annual greenhouse gas data detailing carbon dioxide emissions. The EPA has organized the data according to industrial sector, greenhouse gas, geographic region, and individual facility. The data show a decrease in greenhouse gas emissions in the United States.

U.S. Offshore Wind Market and Economic Analysis

The U.S. Department of Energy has released a 2013 report documenting the progression of off-shore wind energy in the United States. The report highlights two completed commercial lease auctions for federal Wind Energy Areas and 11 other commercial-scale projects in the United States. The report also discusses a global trend toward developing offshore in deeper waters that can use larger, more efficient turbines. The report especially highlights that delayed federal permitting is a hindering factor to the renewable energy sector, noting that:

“The main challenges faced by U.S. offshore wind developers are cost-competitiveness, a lack of infrastructure such as offshore transmission and purpose-built ports and vessels, and uncertain and lengthy regulatory processes.”

Swaps Push Out and Fiduciary Duty Bills Likely To Get Vote; Anti Laundering Bills Introduced; Crowdfunding Proposals & New Liquidity Rules

Legislative Activity

Swaps Push Out and Fiduciary Duty Bills Likely To Get A House Vote This Week

Two important bills are expected to be  voted on by the House this week. The first is the commonly known “swaps push out” bill or H.R. 992. The House Financial Services Committee approved the bill in May and the House Agriculture Committee in March. The other bill to be considered is H.R. 2374, approved by the House Financial Services Committee in June. The bill would put restrictions on how and when the Department of Labor and the Securities and Exchange Commission (SEC) can release new “fiduciary duty” rules for brokers and advisers who direct clients on their investments.

Two New Anti-Money Laundering Bills Introduced

Last week, House Financial Services Ranking Member Maxine Waters (D-CA) and Rep. Carolyn Maloney (D-NY) introduced two separate anti-money laundering bills on the same day. The bills are intended to strengthen U.S. anti-money laundering laws, address loopholes, encourage the flow of information, and provide financial regulators with enhanced civil powers to hold bank executives accountable for misconduct on their watch.

This Week’s Hearings:

  • Tuesday, October 29: The House Financial Services Committee will hold a hearing titled “Federal Housing Administration: Implications of a $1.7 billion Taxpayer Bailout.” The Honorable Carol J. Galante, Federal Housing Administration (FHA) Commissioner and Assistant Secretary for Housing, U.S. Department of Housing and Urban Development (HUD) will be the sole witness.
  • Tuesday, October 29: The House Financial Services Subcommittee on Financial Institutions and Consumer Credit will hold a hearing titled “Examining Legislative Proposals to Reform the Consumer Financial Protection Bureau (CFPB).” The subcommittee plans to examine nine pieces of legislation.
  • Tuesday, October 29: The Senate Banking Committee will hold a hearing titled “Housing Finance Reform: Essentials of a Functioning Housing Finance System for Consumers.”
  • Wednesday, October 30: The Senate Banking Subcommittee on Securities, Insurance, and Investment will hold a hearing titled “The JOBS Act at a Year and a Half: Assessing Progress and Unmet Opportunities.”
  • Thursday, October 31: The Senate Banking Committee will hold a hearing titled “Housing Finance Reform: Essential Elements of a Government Guarantee for Mortgage-Backed Securities.”

Regulatory Activity

SEC Reveals Crowdfunding Proposal

Last Wednesday, October 23, the SEC unanimously voted to propose a long-awaited rule that will allow small businesses to raise funds through the sale of stocks over the internet, a practice commonly called “crowdfunding.” The crowdfunding mandate was a provision of the JOBS Act and lawmakers from both sides of the aisle have pushed the SEC to move quickly in adopting crowdfunding rules.

Federal Reserve Proposes New Liquidity Rules

Last Thursday, October 24, the Federal Reserve proposed a new rule to strengthen the liquidity positions of large financial institutions. The proposal would for the first time create a standardized minimum liquidity requirement for large and internationally active banking organizations and systemically important, non-bank financial companies designated by the Financial Stability Oversight Council (FSOC). These institutions would be required to hold minimum amounts of high-quality, liquid assets such as central bank reserves and government and corporate debt that can be converted easily and quickly into cash.

This Week’s Meetings:

  • Wednesday, October 30: The Commodity Futures Trading Commission (CFTC) will hold an open meeting to consider enhanced protections for futures fund customers.
  • Thursday, October 31: The FSOC will meet in closed session. While an agenda for the meeting has not been released, it is interesting to note that Prudential has decided to accept its significantly important financial institution (SIFI) designation after fighting it through the appeals process.

Rep. Shuster Introduces FEMA Reauthorization Act; Senators Unite to Delay Flood Insurance Rate Increases; DHS Issues Post-Shutdown E-Verify Guidance

Legislative Activity

Federal Emergency Management Agency Reauthorization

On Tuesday, October 22, House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) introduced the first ever Federal Emergency Management Reauthorization Act (H.R. 3300). The bipartisan bill is co-sponsored by full committee Ranking Member Nick Rahall (D-WV), Emergency Management Subcommittee Chairman Lou Barletta (R-PA), and subcommittee Ranking Member Andre Carson (D-IN). The legislation encourages greater coordination between local, state, and federal emergency response personnel; creates a framework for modernizing the nation’s public alert and warning system; and provides liability coverage for volunteer search teams in case of injury or death.

Immigration and Border Security

Although thousands of people marched on Washington in early October to demand immigration reform, and House Democrats introduced a comprehensive bill, many observers remain skeptical that the House will pass meaningful immigration reform legislation in 2013. However, some are beginning to argue that House Republicans may attempt to tackle immigration reform to regain popular support they lost during the government shutdown. House Republicans are still drafting a bill to grant legal status to young people brought to the United States illegally as children, and House Judiciary Committee aides report that Republicans have also begun drafting a bill to grant some level of legal status to undocumented immigrants who have not broken other laws. Reps. Raul Labrador (R-ID) and Ted Poe (R-TX) are also drafting a bill to address low-skilled worker immigration.

Senators Unite to Delay Flood Insurance Rate Increases

A legislative framework to temper or halt flood insurance rate hikes has been reached by a group of members, including Sens. David Vitter (R-LA), Jeff Merkley (D-OR), Mary Landrieu (D-LA), John Hoeven (R-ND), Marco Rubio (R-FL), Heidi Heitkamp (D-ND), Robert Menendez (D-NJ), and Bill Nelson (D-FL). Sen. Vitter explained that the group agreed on a two-step approach: (1) freeze premium increases for at least two years or until the Federal Emergency Management Agency (FEMA) completes a study on flood insurance policy affordability; and (2) institute changes to how FEMA determines each region’s flood risk and corresponding rate increases.

This Week’s Hearings:

  • Tuesday, October 29: The House Homeland Security Committee will hold a full committee mark up on the following bills:
    • A bill to amend Title 49, United States Code, to direct the assistant secretary of Homeland Security (Transportation Security Administration) to transfer unclaimed money recovered at airport security checkpoints to nonprofit organizations that provide places of rest and recuperation at airports for members of the armed forces and their families, and for other purposes (H.R. 1905);
    • Aviation Security Stakeholder Participation Act of 2013 (H.R. 1204);
    • Medical Preparedness Allowable Use Act (H.R. 1791);
    • Transportation Security Acquisition Reform Act (H.R. 2719);
    • A bill to amend the Homeland Security Act of 2002 to make certain improvements in the laws relating to the advancement of security technologies for critical infrastructure protection, and for other purposes (H.R. 2952); and
    • Homeland Security Cybersecurity Boots-on-the-Ground Act (H.R. 3107).
  • Wednesday, October 30: The House Homeland Security Subcommittee on Oversight and Management Efficiency will hold a hearing titled “Facility Protection: Implications of the Navy Yard Shooting in Homeland Security.”
  • Thursday, October 31: The Senate Homeland Security and Governmental Affairs Committee will hold a full committee hearing titled “The Navy Yard Tragedy: Examining Government Clearances and Background Checks.”

Legislative Activity

DHS Issues Post-Shutdown E-Verify Guidance

During the government shutdown, U.S. Customs and Immigration Service (USCIS) suspended the requirement to verify new hires’ employment status and resolve Tentative Nonconfirmations (TNCs) within three days because employers and job applicants could not access their E-Verify accounts. USCIS has announced that applicants have 12 federal business days to resolve TNCs, and employers have until November 5 to create an E-Verify entry for each employee hired during the government shutdown.

White House Briefs Senate Staffers on Iran Negotiations

Executive and Legislative Branch Activity

National Security Agency

The Senate Intelligence Committee will hold a closed door meeting this week on competing National Security Agency (NSA)-related bills that might be considered in that panel. Senate Judiciary Committee leaders are expected to unveil their bipartisan measure, which will also address NSA initiatives.

Reports emerged last week that the NSA allegedly eavesdropped on the phone calls of at least 35 world leaders. The German and French governments have demanded talks with the United States by the end of the year to address the reported NSA activities. German Chancellor Angela Merkel said

“spying on friends is not acceptable at all.”

Trade

German Chancellor Merkel also said existing bilateral agreements under which electronic data is shared with the U.S. intelligence community may be compromised by the reported NSA spying activities, saying: “[W]e need to ask what we need, which data security agreements we need, what transparency we need between the United States of America and Europe.” The Senate Finance Committee will hold a hearing this Wednesday, October 30, to examine the Transatlantic Trade and Investment Partnership.

The Trans-Pacific Partnership (TPP) countries announced the following intersessional meetings: (1) the rules of origin meeting will be held October 28-November 1 in Mexico City; (2) the SOE disciplines meeting is set for November 5-6 in Santiago, Chile; (3) the government procurement group will meet October 30-November 3 in Washington, D.C.; and (4) the investment group will also meet November 5-8 in Washington. Singapore will host the next meeting of TPP ministers in December; date yet-to-be-determined.

Iran

The White House briefed Senate staffers last week on negotiations with Iran over its nuclear program. The Administration is trying to persuade Congress to delay new sanctions against Iran in advance of the next round of P5+1 Talks scheduled for November 7-8 in Geneva, Switzerland.

Syria

The United Nations (U.N.) announced last week that U.N.-Arab League Special Envoy Lakhdar Brahimi will convene a trilateral meeting with U.S. and Russian officials in Geneva on November 5. The U.S. delegation will be led by Under Secretary of State for Political Affairs Wendy Sherman and include U.S. Ambassador to Syria Robert Ford. This Thursday, Ambassador Ford will testify before the Senate Foreign Relations Committee on Syria.

This Week’s Hearings:

  • Tuesday, October 29: The House Foreign Affairs Committee will hold a hearing (originally scheduled for last week) titled “Next Steps on Egypt Policy.” Officials from the Departments of State and Defense will testify, along with an official from the U.S. Agency for International Development.
  • Tuesday, October 29: The House Foreign Affairs Subcommittee on the Middle East will hold a hearing titled “After the Withdrawal: The Way Forward in Afghanistan and Pakistan (Part II).”
  • Tuesday, October 29: The House Foreign Affairs Subcommittee on Human Rights will hold a hearing titled “Guo Feixiong and Freedom of Expression in China.”
  • Wednesday, October 30: The Senate Finance Committee will hold a hearing titled “The Transatlantic Trade and Investment Partnership: Achieving the Potential.”
  • Wednesday, October 30: The House Foreign Affairs Subcommittee on Emerging Threats will hold a hearing titled “China’s Maritime and Other Geographic Threats.”
  • Wednesday, October 30: The House Foreign Affairs Subcommittee on Africa and the Subcommittee on the Middle East and North Africa will hold a joint hearing titled “Establishing a Syrian War Crimes Tribunal?”
  • Thursday, October 31: The Senate Foreign Relations Committee will hold a hearing on Syria. U.S. Ambassador to Syria Robert Ford is scheduled to testify, as well as other U.S. officials.
  • Thursday, October 31: The Senate Foreign Relations Committee will hold a business meeting to review a bill on the Westgate Mall terrorist attack in Kenya (S. Res 268) and 25 nominations.

Rep. Johnson Urges White House To Codify Consumer Privacy Bill Of Rights

Legislative Activity

Rep. Goodlatte Introduces Patent Litigation Reform Bill

Last Wednesday, October 23, House Judiciary Committee Chairman Bob Goodlatte (R-VA) introduced the Innovation Act (H.R. 3309), intended to curtail abusive patent litigation while fostering U.S. competitiveness. The bill has received bipartisan support from cosponsors including Rep. Anna Eshoo (D-CA) and is scheduled for a hearing before the House Judiciary Committee this Tuesday, October 29. Senate Judiciary Committee Chairman Patrick Leahy (D-VT) commended introduction of the bill and announced that he is working with Sen. Mike Lee (R-UT) on a companion bill in the Senate.

Rep. Johnson Urges White House To Codify Consumer Privacy Bill Of Rights

Last Thursday, October 24, Rep. Hank Johnson (R-GA) sent a letter to President Barack Obama urging him to move forward with codifying the Consumer Privacy Bill of Rights, which the White House released last year as a blueprint for future online privacy legislation. Rep. Johnson applauded reports that the White House currently is working on draft legislation to boost online privacy safeguards for consumers. The letter urged the president to consider the Application, Privacy, Protection, and Security Act (H.R. 1913), introduced by Rep. Johnson in May, as a foundation for protecting consumers’ privacy on mobile devices.

Sen. Cruz Reportedly Scheduled To Meet With FCC Chairman Nominee

Sen. Ted Cruz (R-TX) is reportedly scheduled to meet with Tom Wheeler, President Obama’s nominee to chair the Federal Communications Committee (FCC), this Tuesday, October 29. Sen. Cruz continues to hold up Wheeler’s nomination over questions regarding Wheeler’s views on the FCC’s power to enforce disclosures of political advertising sponsorship. Sen. Cruz has vowed to block Wheeler’s nomination until he receives satisfactory answers to his questions on this issue.

This Week’s Hearings:

  • Tuesday, October 29: The Senate Commerce Subcommittee on Communications, Technology, and the Internet will hold a hearing titled “Broadband Adoption: The Last Mile.”

Regulatory Activity

FCC Announces Tentative Agenda For November Open Meeting

The FCC has released a tentative agenda for its November 14 open meeting. The FCC tentatively plans to consider: (1) a declaratory ruling under which the FCC could allow broadcasters to exceed the current 25 percent limit on foreign investment on a case-by-case basis; (2) a Report and Order to improve the reliability and resiliency of 911 communications networks nationwide; (3) an update on universal service reform implementation; and (4) an update on public-private initiatives seeking to boost broadband adoption and digital literacy.

CTIA President And CEO To Step Down At End Of 2014

Steve Largent, president and CEO of CTIA-The Wireless Association, announced last Friday, October 25, that he plans to step down at the end of 2014 when his current contract expires. The CTIA board of directors announced that it will begin the search for his replacement immediately.

FCC Releases E-rate Eligible Services List For Funding Year 2014

Last Tuesday, October 22, the FCC released the list of services eligible for E-rate funding for the 2014 funding year. The FCC adopted a number of clarifications and minor changes to the eligible services list, including a clarification that interactive communications features, such as blogging, that may be eligible as part of a web hosting package are not eligible for support as standalone services. The FCC also authorized the Universal Service Administrative Company (USAC) to open the annual application window no earlier than December 23.

FTC Extends Comment Deadlines For COPPA Proposals

Due to the recent government shutdown, the Federal Trade Commission has extended the public comment period for two proposals under the Children’s Online Privacy Protection Rule. The comment period for the verifiable parental consent proposal from Imperium, LLC, previously scheduled to end on October 9, will now end next Monday, November 4. The comment period for the proposed kidSAFE Seal safe harbor program, previously scheduled to end October 18, also will end next Monday, November 4.

Upcoming Deadlines and Meetings:

  • Monday, October 28: The FCC will hold its rescheduled open meeting to address (1) rural call completion; (2) interoperability in the lower 700 MHz band; and (3) technical rules for the 700 MHz broadband spectrum licensed to the First Responder Network Authority.
  • Monday, November 4: Initial comments are due in response to the FCC’s Further Notice of Proposed Rulemaking (FNPRM) regarding closed captioning requirements for video programming delivered using Internet protocol.
  • Monday, November 4: Initial comments are due in response to the FCC’s FNPRM regarding next steps to address Internet Protocol Captioned Telephone Service practices threatening the Telecommunications Relay Service Fund.
  • Monday, November 4: Initial comments are due in response to the FCC’s public notice proposing a preliminary catalog of expenses for which broadcasters and multichannel video programming distributors could be reimbursed following the planned broadcast spectrum incentive auction.

Legislative Consideration of Protecting Students from Sexual and Violent Predators Act and Promoting Adoption and Legal Guardianship for Children in Foster Care Act

The Senate will be in recess this week. The House will not be in session today, but tomorrow, Tuesday, October 22, the House will meet at 12:00 pm for morning hour and 2:00 pm for legislative business, with votes being postponed until 6:30 pm.

Legislation to be considered under suspension of the rules includes:

  1. H.R. 185 – To designate the United States courthouse located at 101 East Pecan Street in Sherman, Texas, as the “Paul Brown United States Courthouse;”
  2.  H.R. 2083 – Protecting Students from Sexual and Violent Predators Act, as amended; and
  3. H.R. 3205 – Promoting Adoption and Legal Guardianship for Children in Foster Care Act

On Wednesday, October 23, and Thursday, October 24, the House will meet at 10:00 am for morning hour and 12:00 pm for legislative business. Also on the House calendar for the week is H.R. 3080 – Water Resources Reform and Development Act of 2013, Rules Committee Print, which will be subject to a rule.

No votes are expected in the House on Friday, October 25.

Agriculture Leadership Announces Date For Farm Bill Conference

Legislative Activity

Farm Bill

This week, agriculture leadership in both chambers will likely announce a date for the farm bill conference to begin. Last week, House Agriculture Committee Chairman Frank Lucas (R-OK) shared that the farm bill conference would begin when both chambers are in session, which means that a date will likely be scheduled for the week of October 28. The Senate is not in session this week.

Supplemental Nutrition Assistance Program

Last week, the CATO Institute published a study that supports efforts for Supplemental Nutrition Assistance Program (SNAP) reform. The study finds that increased participation in SNAP over the past 13 years is due to “deliberate policy choices,” rather than economic factors, assails the program as fraudulent and ineffective, and suggests that lawmakers relinquish control of the program to states.

Cybersecurity Legislation Under Review; NIST to Release Draft Cybersecurity Framework; DHS Updated NIPP Release is Delayed

Legislative Activity

Cybersecurity Legislation

After postponing a previously scheduled markup due to the government shutdown, the House Homeland Security Committee plans to mark up the Critical Infrastructure Research and Development Advancement Act of 2013 (H.R. 2952) and the Homeland Security Cybersecurity Boots-on-the-Ground Act (H.R. 3107) on Thursday, October 24 at 9:00 am. The bills were previously considered in the Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies in September and are likely to be passed by the full committee this week. H.R. 2952 focuses on research and development efforts at the Department of Homeland Security (DHS) that seek to advance security technologies for critical infrastructure protection, while H.R. 3107 establishes cybersecurity occupation classifications, assesses the cybersecurity workforce, and develops a strategy to address identified gaps in the cybersecurity workforce at DHS.

Executive Branch Activity

NIST Cybersecurity Framework

Although an exact date has not yet been set, the National Institute of Standards and Technology (NIST) plans to release its draft Cybersecurity Framework in the coming days. The planned release of a new draft of the Framework was set for October 10 but was delayed due to the government shutdown. Stakeholders will be able to comment on the Cybersecurity Framework once it is released. NIST is also planning to hold a final workshop to discuss the draft Cybersecurity Framework on November 14-15 at North Carolina State University in Raleigh, North Carolina.

National Infrastructure Protection Plan

The release of DHS’s updated National Infrastructure Protection Plan (NIPP) on October 10 was also delayed due to the government shutdown. A new version of the NIPP is expected to also be released soon. The revised NIPP will now integrate approaches to address both physical and cybersecurity risks for critical infrastructure as well as continue to focus on the importance of planning, preparedness, response and recovery to man-made and natural disasters.

Budget Conference Committee to be Established; Senator Voices Disapproval of Using Civilian Courts and Prisons for Captured Terrorists

Executive and Legislative Branch Activity

Budget

Last week’s successful eleventh-hour Senate-led bipartisan proposal (H.R. 2775) to raise the debt ceiling (until February 7) and end the government shutdown, by essentially funding the federal government at FY 2013 numbers (through January 15), also included a provision to establish a budget conference committee to reconcile the differing top line numbers for the FY 2014 House and Senate appropriations bills. However, H.R. 2775 did not address sequestration. The budget conferees were named last week and will have to, among other things, reconcile how much national defense programs will receive, while keeping in mind the $498 billion cap in the Budget Control Act for FY 2014 and the FY 2013 limit of $518 billion. A report is expected by December 13.

CounterTerrorism

The al Qaeda operative captured by U.S. special forces in Libya, Abu Anas al-Libi, plead not guilty last week to charges of helping plan the 1998 U.S. embassy bombings in Africa when he was arraigned in the U.S. District Court for the Southern District of New York. Senate Armed Services Committee Ranking Member James Inhofe (R-OK) voiced his disapproval of the Administration’s decision to use civilian courts and civilian prisons for captured terrorists. He instead advocates utilizing the military prison at the Guantánamo Bay Naval Base in Cuba for such detainees.

Last week, the State Department confirmed U.S. forces captured a senior Pakistan Taliban commander, Latif Mehsud. Afghan officials reported Mehsud was captured in eastern Afghanistan. The United States classifies Mehsud as a terrorist.

U.S. Export Control System

The White House released a fact sheet last week on changes to the U.S. Munitions List (USML) and the Commerce Control List (CCL) that pertain to controls on aircraft and gas turbine engines. The most sensitive items – such as bombers, fighters, unmanned aerial vehicles, and their key subsystems, parts, and components – remain on the USML, while less sensitive items – such as cockpit gauges, steel brake wear pads and fuel filters – are now subject to the more flexible authorities of the CCL. These changes were effective Tuesday, October 15.

Afghanistan

The United States is reportedly nearing the end of negotiations with Afghanistan for a Status of Forces Agreement (SOFA). A SOFA would allow some U.S. troops to remain in Afghanistan beyond 2014.

Turnover

After announcing he would not seek re-election on October 9, House Appropriations Defense Subcommittee Chair C.W. “Bill” Young (R-FL) was hospitalized last week and passed away on Friday, October 18. Florida Republican Governor Rick Scott will have to set the date for a special election to fill Congressman Young’s seat.

The media reported last week that National Security Advisor (NSA) Director Army Gen. Keith Alexander is intending to resign early next year and NSA Deputy John Inglis is expected to retire later this year. This Thursday, the House Intelligence Committee is expected to hold a hearing on NSA programs.

This Week’s Hearings:

  • Wednesday, October 23: The House Armed Services Subcommittee on Seapower and Projection Forces will hold a hearing titled “An Independent Assessment of the Navy’s 30 year Shipbuilding Plan.”
  • Wednesday, October 23: The House Armed Services Subcommittee on Tactical Air and Land Forces will hold a hearing titled “Impacts of a Continuing Resolution and Sequestration on Acquisition and Modernization.”
  • Thursday, October 24: The House Intelligence Committee is slated to hold a hearing on NSA programs.

CFPB Issues Annual Report Highlighting Concerns with Private Lenders

Legislative Activity

Upcoming Hearings:

  • Wednesday, October 30: A hearing and business meeting in the Senate Health, Education, Labor and Pensions (HELP) Committee to mark up legislation (including H.R. 2094, the School Access to Emergency Epinephrine Act) and review Department of Education nominations has been postponed until October 30. This is the second time the hearing and business meeting have been rescheduled, as they were first rescheduled to take place during the shutdown.

Regulatory Activity

Federal Student Loan Servicers

The Department of Education announced that it will begin its initiative to ensure that borrowers of Direct Loans and Federal Family Education Loans only have one servicer for their loans. The transfer initiative will start this month and be completed by March 2014.

Private Student Loans

The Consumer Financial Protection Bureau (CFPB) issued its Annual Report of the CFPB Student Loan Ombudsman on Wednesday, October 16, which continued to highlight concerns with private lenders. The report reviewed approximately 3,800 complaints, 87 percent of which were directed at only eight companies.

In the report, CFPB Student Loan Ombudsman Rohit Chopra again likened consumer issues with the student loan industry to those of the mortgage market in the wake of the financial crisis. He noted that “[r]ecent changes to mortgage servicing and credit card servicing practices may shed some insight on possible approaches to remedy student loan servicing concerns.” The CFPB announced in March that it would like to extend its oversight to companies that collect payments from borrowers and on behalf of lenders (e.g., “student loan servicers”). The CFPB is expected to finalize that rule expanding such authority over servicers by the end of 2013.

Supreme Court Sets Up Limited EPA Greenhouse Gas Challenge

Legal Activity

Supreme Court Sets Up Limited EPA Greenhouse Gas Challenge

On Tuesday, October 15, the Supreme Court granted and consolidated six petitions for certiori to hear a limited appeal of the Environmental Protection Agency’s (EPA) regulation of greenhouse gases from new motor vehicles. The Court’s decision is limited to a single question: “Whether EPA permissibly determined that its regulation of greenhouse gas emissions from new motor vehicles triggered permitting requirements under the Clean Air Act for stationary sources that emit greenhouse gases.”

At the same time, the Court chose not to grant certiori for a number of petitions seeking to challenge the EPA’s 2009 endangerment finding that greenhouse gas emissions threaten human health and welfare. Consequently, the Court was unwilling to address whether EPA possesses authority to regulate greenhouse gas emissions under the Clean Air Act, and at this time, only appears willing to address the substance of the EPA’s regulation itself.

Flood Repairs in Colorado; National Forests; Wind Energy Annual Report

Legislative Activity

Flood Repairs in Colorado

The short-term continuing resolution (CR) passed by Congress will allow “the U.S. Secretary of Transportation to use up to $450 million of funds previously appropriated to the Highway Emergency Relief program to pay for repairs after recent flooding in the State of Colorado.” The provision does not, however, provide additional funding for emergency relief projects.

National Forests

The short-term CR passed by Congress will also enable the U.S. Forest Service to improve forest conditions using proceeds from timber harvested on federal lands instead of congressionally-appropriated funds to finance projects. In addition, the CR allows the U.S. Department of Interior and the U.S. Corps of Engineers to collect recreation fees, including the sale of annual passes, through January 15, 2014.

Regulatory Activity

Wind Energy Annual Report

Created by the International Energy Agency (IEA), IEA-Wind is an international research cooperative composed of 20 member countries, including the United States, the European Commission, the European Wind Energy Association and the Chinese Wind Energy Association. IEA-Wind has recently released its latest annual report (2012), which discusses how much wind energy is addressing the world’s demand for electricity. In addition, chapters are available from each member country addressing “how much wind energy they have deployed, how they benefit from wind energy, and how their policies and research programs will increase wind’s contribution to the world energy supply.”

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