Government Executive - Authors - Juliana Gruenwald

Senator: Congress can deal with 'fiscal cliff'

Juliana Gruenwald, National Journal — Mon, 17 Sep 2012 16:31:07 -0400

“If President Obama is re-elected, I believe we can avoid the fiscal cliff,” Durbin said during an appearance on Bloomberg’s new Capitol Gains Sunday show.

However, Durbin said he believed “only the broadest outlines” of a deal can be achieved when Congress returns for a lame-duck session following the November election.

Durbin’s optimism that a deal can be achieved is in contrast to House Speaker John Boehner, R-Ohio, who said this past week that he was not confident lawmakers will reach a deal to avoid the fiscal cliff, when deep cuts to defense and domestic programs go into effect and the Bush-era tax cuts expire Jan. 1.

Durbin noted that there has been more bipartisanship in the Senate and that Boehner faces a tougher situation in the House. At the same time, he said, it could take up to six months for lawmakers to figure out the details on what changes would be required to the tax code and entitlement programs.

“It can’t be done in a matter of days or weeks,” Durbin said. But, he added, “We need to give assurances to those who are skeptical, and they have a right to be skeptical, that we’re serious about it.”

When asked about criticism that President Obama has not shown enough leadership on the issue, Durbin said any plan released by the White House before the election would be assailed as a campaign ploy. In such a highly charged environment, “nothing serious is going to happen before the election,” Durbin said.
]]>

New data show Obama ahead in social-media race

Juliana Gruenwald, National Journal — Thu, 14 Jun 2012 16:36:11 -0400

If the presidential race were based on Facebook fan engagement, President Obama would be far ahead of his likely Republican opponent Mitt Romney, according to a report released on Thursday.

While Romney led his competitors for the GOP presidential nod, the social-media analytics firm Socialbakers found that Obama appears to be winning the social-media race in the head-to-head matchup against his likely Republican opponent in the fall.

Data from May show that nearly five times as many people on Facebook are talking about Obama than Romney. Obama also gained four and a half times as many new Facebook fans in May as Romney did, 620,000 to 120,000. In all, Obama has 26.9 million Facebook "likes," compared with just 1.8 million for Romney.

“It will be interesting to see how that correlates to the election results in November," Socialbakers CEO Jan Rezab said in a statement.

While the firm didn’t measure engagement on Twitter, Obama appears to be more popular on the micro-blogging site as well. As of Thursday morning, Obama had 16.5 million Twitter followers, compared with 552,000 for Romney.

Socialbakers also found that social-media users appear to be less moved by negative advertising. “Facebook users were far more engaged with positive posts highlighting successes, accomplishments, or even revealing a glimpse of the candidates' private lives than they were the standard campaign rhetoric,” the firm said.

]]>

ACLU sues to block searches of electronic devices

Juliana Gruenwald — Tue, 07 Sep 2010 00:00:00 -0400

The American Civil Liberties Union and the National Association of Criminal Defense Lawyers filed a lawsuit Tuesday to block the U.S. government from conducting searches of electronic devices at U.S. borders.

The lawsuit, filed in U.S. District Court in New York against the Homeland Security Department, claims the policy violates the First and Fourth Amendments. The policy allows customs officials to search, detain and copy computers, mobile phones, cameras and other electronic devices of both U.S. and non-U.S. citizens.

The case was filed on behalf of Pascal Abidor, a 26-year-old U.S.-French dual citizen and Islamic studies doctorate student, whose laptop was detained for 11 days and searched after he was taken off an Amtrak train in upstate New York. Other plaintiffs in the case include the defense lawyers association, which is also working as a counsel on the case and whose president-elect had her laptop detained and searched, and the National Press Photographers Association, a member of which had his laptop searched in 2007 without reason, according to the lawsuit.

"Unchecked government fishing expeditions into the constitutionally protected materials on an innocent traveler's laptop or cell phone interfere with the ability of many Americans to do their jobs and do nothing to make us safer," Melissa Goodman, a staff attorney with the ACLU National Security Project, said in a statement. "Americans do not surrender their privacy and free speech rights when they travel abroad."

In a blog post, the ACLU said it does not oppose all searches of electronic devices, "but only that border agents should have some suspicion that the search will turn up evidence of wrongdoing before looking through all the private information that people have stored in their devices."

According to records obtained by the ACLU through the Freedom of Information Act, more than 6,500 people, including nearly 3,000 U.S. citizens, had their electronic devices searched at U.S. borders between Oct. 1, 2008, and June 2, 2010.

DHS did not immediately respond to a request for comment on the lawsuit. But in an August 2009 news release announcing its revised policy on electronic searches, the department argued that "searches of electronic media, permitted by law and carried out at borders and ports of entry, are vital to detecting information that poses serious harm to the United States, including terrorist plans, or constitutes criminal activity--such as possession of child pornography and trademark or copyright infringement."

]]>

GOP lawmakers skewer Interior chief on drilling oversight

Juliana Gruenwald — Fri, 23 Jul 2010 00:00:00 -0400

Republicans on the House Oversight and Government Reform Committee grilled Interior Secretary Ken Salazar on Thursday over what they claimed was the Obama administration's failure to address potential problems with the agency charged with overseeing oil and gas drilling, problems they say may have contributed to the BP oil disaster in the Gulf of Mexico.

During a hearing on the government's oversight of deep-water drilling, Republicans noted that while the Bush administration did not provide adequate oversight either, the Obama administration had more than a year to try to fix known problems at the Interior Department's Minerals Management Service before the April explosion aboard the Deepwater Horizon oil rig.

In the wake of the accident, Salazar announced in May a plan to reorganize the MMS by splitting up the bureau's resource management, safety, environmental oversight, enforcement and revenue collection duties into three separate entities.

Oversight and Government Reform Commitee ranking member Rep. Darrell Issa, R-Calif., however, argued that such changes are too little, too late and are more aimed at improving the administration's image.

"These problems were well known during the Bush administration," Issa said. "But sadly, during the year and a half of your administration, change did not occur." He added that had some of the changes been put in place before the April explosion, he believes the BP oil disaster "could have been prevented."

Other lawmakers noted Salazar was on the job when the permit for BP's deep-water well was issued and also outlined the failure of MMS to make mandated inspections of the Deepwater Horizon rig.

Rep. John Mica, R-Fla., questioned why the administration proposed cutting funding for MMS and for disaster-response resources at the Coast Guard in its fiscal 2011 budget, while Rep. Dan Burton, R-Ind., criticized Salazar for not visiting some of the areas in the Gulf hurt most by the oil disaster.

Salazar repeated an assertion he made on Tuesday before a House Energy and Commerce subcommittee that there is "collective responsibility" for the Gulf oil disaster. "I do not believe, at the end of the day, the blame game will help us move forward," he said.

He also defended the administration's actions, saying he was focused on reforming MMS from his first days in office. Salazar said he has submitted a supplemental budget for fiscal 2011 seeking additional funding to hire more offshore oil well inspectors. On his response to the oil spill, Salazar said he has visited the Gulf 11 times, while other top officials have made many visits as well.

Oversight and Government Reform Committee Chairman Rep. Edolphus Towns, D-N.Y., noted that while offshore drilling grew rapidly over the last two decades, staffing levels at MMS did not keep pace. Towns asked Salazar what the agency is doing to attract qualified engineers and to prevent MMS staff from leaving to work for the oil industry.

"The revolving door is [an issue] we have looked at and it has troubled us," Salazar said.

Michael Bromwich, director of the new Bureau of Ocean Energy Management, Regulation and Oversight, one of the three agencies that will succeed MMS, said he has begun looking at ways to expand the pool of inspectors and make the job more attractive.

Democrats pressed Salazar on what he is doing to increase the amount of royalties the federal government takes in from oil and gas production. They pointed to a 2008 Government Accountability Office report that showed the United States receives among the lowest shares of revenue from oil and gas leasing resources in the world.

Salazar said Interior is working on plans to increase U.S. royalties by, among other things, eliminating the royalty-in-kind program that allowed companies to provide oil and gas to the U.S. government in lieu of revenues.

Salazar also was asked what the agency is doing to get a more accurate accounting of the amount of oil and gas being extracted so that the federal government is adequately compensated. MMS had been relying on oil companies to calculate and submit the royalties they owe. Salazar and Bromwich said the agency is putting in place a process for independently calculating what the government is owed in royalties.

]]>

Fiscal 2011 spending for housing, transportation draws GOP attacks

Juliana Gruenwald — Thu, 01 Jul 2010 00:00:00 -0400

Even though the bill would cost less than the current year's amount, Republicans on Thursday complained that legislation to provide funding in fiscal 2011 for housing, transportation and infrastructure programs will add to the federal government's fiscal woes.

While displaying a level of comity that even members said was becoming increasingly rare in Congress, members of the House Transportation Appropriations Subcommittee voted along party lines to reject most of the amendments offered by Republicans.

The bill that ultimately cleared the panel on a voice vote would provide $67.4 billion in discretionary spending for fiscal 2011 -- $500 million less than the fiscal 2010 discretionary level and $1.3 billion below what the president requested.

"Even with an allocation below last year, we were able to put together a bill that continues to invest in our transportation and housing programs," said Transportation Appropriations Subcommittee Chairman Rep. John Olver, D-Mass.

But Transportation Appropriations Subcommittee ranking member Tom Latham, R-Iowa, noted that even though the measure would spend less than fiscal 2010, that bill included a 23 percent increase over fiscal 2009 appropriations, "so the $500 million is a drop in the bucket of where we need to go to bring this bill back to a reasonable rate."

Latham offered an amendment that would have cut $1.8 billion from the bill by reducing funding for several programs to the level requested by the Obama administration.

It failed on an 8-5 vote after Olver argued that the programs targeted by Latham -- such as cutting $400 million from a program that provides grants for high-speed rail and other projects -- create jobs and are aimed at keeping the nation's economy from slipping back into recession.

The panel also defeated, again on a 8-5 vote, an amendment offered by Rep. John Carter, R-Texas, that would have directed unused discretionary transit and highway funding set aside in the past for earmarks from Republicans be sent to the states using formulas included in last year's economic stimulus package.

Olver argued that the language would be subject to a point of order on the House floor and is an issue better dealt with by the Transportation and Infrastructure Committee.

But Latham and Carter both noted that most of the bill could be subject to a point of order on the floor because Congress has yet to pass a surface transportation reauthorization measure.

The subcommittee also voted 8-5 to reject an amendment from House Appropriations ranking member Jerry Lewis, R-Calif., that would have required that highway funding be reduced to a level to ensure that there is at least $4 billion in the highway trust fund, an amount the CBO says is necessary to avoid delaying payments to the states, according to Lewis.

Under the current funding in the legislation, Lewis said, the trust fund would fall well below that level by 2012. "We can't keep bailing out the fund," Lewis said. "We should consider what the trust fund can support."

While saying that Lewis is "correct that something needs to be done to ensure the long-term viability of the [highway] infrastructure program," Olver said CBO has indicated that the fund will be solvent until 2013 and that the investments included in the spending bill are "critical."

The panel did approve by voice vote an amendment from Rep. Steve LaTourette, R-Ohio, that would require greater transparency for grants provided under the Transportation Investment Generating Economic Recovery program, which provides grants for high-speed rail and other "innovative" transportation projects.

But LaTourette struck out, again on 8-5 votes, on two other amendments he offered, one of which would have required that the $200 million in funding for the livable communities program come from general Transportation Department funds, not from the highway trust fund. The other amendment would have barred highway funds from being shifted to the Education Department for an education jobs fund.

]]>

PTO teams with Google on database

Juliana Gruenwald — Wed, 02 Jun 2010 00:00:00 -0400

The Patent and Trademark Office announced Wednesday it has reached a two-year "no-cost" agreement with Google to make patent and trademark data electronically available for free to the public in bulk form.

Saying it lacks the technical capacity to offer such a service, PTO said the two-year agreement with Google is a temporary solution while the agency seeks a contractor to build a database that would allow the public to access such information in electronic machine-readable bulk form.

PTO Director David Kappos said in a statement that the move is part of the agency's efforts to comply with President Obama's open government initiative by "making valuable public patent and trademark information more widely available in a bulk form so companies and researchers can download it for analysis and research."

Some of the information that will be available on the Google-operated site includes patent grants and published applications; trademark applications; trademark trial and appeal board proceedings; patent classification information; patent maintenance fee information; and patent and trademark assignments.

Up until now, the PTO provided such data only in bulk form for a fee.

]]>

Industry coalition opposes PTO-fee bill

Juliana Gruenwald — Mon, 17 May 2010 00:00:00 -0400

A coalition of big U.S. companies that rely on patents said on Monday it opposes House legislation that would allow the U.S. Patent and Trademark Office to set fees to pay for its operations, arguing the measure would not bar Congress from diverting some of the fees for other purposes.

The House is expected to take up the bill on Tuesday. The provision is in a broader compromise patent-overhaul bill that is supported by the Coalition for 21st Century Patent Reform that is made up of such companies as DuPont, General Electric, Motorola, Merck and 3M. The broader patent reform bill is awaiting action by the full Senate.

But the coalition said in a statement on Monday that while it backs the idea of allowing the PTO to set fees to adequately fund its operations and improve the time it takes to review patents, it opposes the House bill on grounds it does not include a provision that would prohibit PTO funds from being diverted for other government programs.

"We need legislation that guarantees that the fees paid by the users of the patent system are adequate to hire and train needed examiners and to provide them with the modern information technology necessary to conduct thorough examinations and grant valid patents. Unfortunately, the [PTO measure] is not that bill. Although it authorizes the USPTO to set fees to recover its estimated costs, it contains no safeguards to prevent those fees from being diverted to support other totally unrelated government programs," it said in a statement.

At a recent hearing on the PTO, the bill's expected sponsor, House Judiciary Committee Chairman John Conyers, D-Mich., and Rep. Zoe Lofgren, D-Calif., pressed PTO Director David Kappos on whether he would support a stand-alone fee-setting bill. Kappos said only that the agency still believes a broader patent overhaul bill can make it through Congress.

But many lawmakers say something must be done to help the PTO address its funding needs regardless of what happens with the broader patent bill.

Conyers, Lofgren, House Judiciary Committee ranking member Rep. Lamar Smith, R-Texas, and other key panel members oppose some of the provisions in the Senate compromise patent bill unveiled in March by Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., and ranking member Jeff Sessions, R-Ala. The House Judiciary members have been negotiating with their Senate counterparts to try to address their concerns, with the goal of producing a measure the House Judiciary panel could take up.

]]>

Watchdog calls for drug-marketing scrutiny

Juliana Gruenwald — Mon, 10 May 2010 00:00:00 -0400

Proposals under review at the Food and Drug Administration to allow pharmaceutical companies to market drugs on social media and other Web sites got fresh scrutiny Monday from the Center for Digital Democracy.

"We believe that the FDA must proceed very carefully as it works to develop rules regarding digital media marketing of pharmaceutical products," CDD Executive Director Jeff Chester said in a letter to FDA Commissioner Margaret Hamburg and Principal Deputy Commissioner Josh Sharfstein. "Social media and digital marketing raise critical consumer protection concerns."

These concerns include whether adequate safeguards exist to protect people if firms use personal information to target drug-related online ads at consumers. They also ask whether firms, in marketing their products, should be able to target consumers with e-mail, text messages, blast e-mail or e-mail listservs, chat rooms or social networking bulletin boards that are operated by third parties.

Chester also said the FDA needs to examine the relationship between some online medical information sites and their advertisers, as well as whether social media sites use "marketing applications that stealthily eavesdrop and analyze conversations by and among health consumers."

Noting that the FTC is working on a report related to online privacy, CDD asked that the FDA work closely with the commission on the issue.

The FDA held a public hearing in February on whether to allow drug companies and other firms to use social media and other Internet tools to advertise for certain drugs and medical devices. The FDA has authority to regulate the labeling and advertising of prescription drugs and medical devices. The FDA did not respond for comment.

]]>

House panel mulls separate patent bill

Juliana Gruenwald — Wed, 05 May 2010 00:00:00 -0400

With discussions with the Senate on patent overhaul legislation ongoing, House Judiciary Committee leaders indicated Wednesday they might introduce a stand-alone bill that would allow the Patent and Trademark Office to set its own fees and keep all the revenues it generates.

During a hearing on the PTO, House Judiciary Committee Chairman Rep. John Conyers, D-Mich., said efforts to reach a deal with the Senate on a patent overhaul bill are not progressing as well as he would like. He said after the hearing he and other Judiciary leaders are considering crafting a stand-alone bill to give the PTO fee-setting authority and bar Congress from diverting PTO funds to other uses.

"It seems to be stalled somewhere between House and Senate," Conyers of the broader patent overhaul bill when he spoke at the hearing.

Conyers and other House Judiciary members have been working with their Senate counterparts to address concerns raised about a compromise patent bill unveiled last month by Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., and ranking member Jeff Sessions, R-Ala. Conyers said House Judiciary members are normally able to resolve their differences with the Senate, but on this issue, "it seems not to be happening."

Supporters of PTO say increased funding and an ability to set its fees would help it reduce the backlog of patent applications, which now number more than 700,000, and improve the quality of patents. The Senate compromise bill would give the PTO fee-setting authority and end the diversion of PTO fees.

House Judiciary Committee ranking member Lamar Smith, R-Texas, said after the hearing he is still hopeful about resolving the concerns with the Senate compromise patent bill, and noted staff discussions are continuing. But "changes need to be made on the Senate bill before we'll sign off on it," he said.

He added a stand-alone fee-setting bill could complement the Senate efforts, and that regardless of the talks on a patent overhaul bill, Congress needs to do something to address the huge backlog of patent applications and improve the quality of patents.

When pressed on the issue of a stand-alone fee-setting bill by Rep. Zoe Lofgren, D-Calif., PTO Director David Kappos refused to say whether he would support such a move, insisting that he believes Congress can pass a broad patent overhaul bill.

"I believe we should press on and get comprehensive patent legislation that includes all the changes for the PTO and all the other important changes that will move the U.S. patent system back to the gold standard," Kappos said.

"Are you saying that if our diligent efforts to get a comprehensive bill fall short, then no thanks [to a stand-alone bill]?" Lofgren asked.

Kappos responded he would like to work with the committee to get a comprehensive patent bill.

Robert Budens, president of the Patent Office Professional Association, said his group is concerned about allowing the agency to create new fees and wants to ensure that if the agency is given fee-setting authority that Congress maintains oversight over the agency.

]]>

SEC chief backs self-funding

Juliana Gruenwald — Wed, 17 Mar 2010 00:00:00 -0400

Securities and Exchange Commission Chairwoman Mary Schapiro Wednesday voiced support for a provision in Senate financial regulatory overhaul legislation that would allow the agency to self-fund its budget by retaining fees it collects.

Schapiro was asked about the provision included in the overhaul measure of Senate Banking Committee Chairman Christopher Dodd, D-Conn., following a House Financial Services Appropriations Subcommittee hearing on the SEC's fiscal 2011 budget request. She said that while the level of funding provided to the SEC by appropriators in recent years "has been great, it's very important" for the agency to have the stability of self-funding. She said it would "give us the ability to respond to changes" more quickly, add staff when needed and do long-term technology and resource planning.

The fiscal 2010 funding for the SEC was $1.1 billion, a $151 million increase over fiscal 2009. However, Sen. Charles Schumer, D-N.Y., who has been pushing to make the SEC a self-funded agency, said in November that the agency collected $1.5 billion in fees in 2008. The agency has requested $1.26 billion for fiscal 2011.

The issue of allowing the agency to be self-funded did not come up during the hearing. While noting that the SEC must not allow the agency's failures to be repeated, the subcommittee's leaders voiced support for the job Schapiro is doing and pledged to provide her with the resources she needs to ensure both investors and the public have confidence in the SEC.

While lawmakers "expect a lot from the SEC, we stand ready to support you," Financial Services Appropriations Subcommittee Chairman Jose Serrano, D-N.Y., told Schapiro.

Schapiro was questioned about a report released last week on the September 2008 bankruptcy of Lehman Brothers that found the firm used accounting gimmicks to hide $50 billion in debt. Schapiro said the SEC is looking very closely at the conduct of a number of firms prior to the financial meltdown of late 2008, though she declined to provide any names.

Rep. John Culberson, R-Texas, also questioned Schapiro about why SEC employees are not prohibited from working for firms the SEC regulates for a certain amount of time after leaving the agency.

"We want to bring in the best and the brightest," including those from Wall Street who understand how the financial industry works and can help find problems, Schapiro said. "At the same time, if you tell them they can't go work for five years in this industry, we will have a difficult time bringing in the people we need," she said.

"It's a bad idea," Culberson responded. "I think you should think about doing away with it." Schapiro agreed to look into changing the agency's policy on the issue.

]]>

Patent and Trademark Office seeks OK to spend higher fee income

Juliana Gruenwald — Wed, 06 Jan 2010 00:00:00 -0500

The U.S. Patent and Trademark Office is urging Congress to increase its funding for fiscal 2010 in light of new projections that the agency said shows it will receive in excess of $100 million more from patent fees than it estimated in September.

Appropriators used the September projection of $1.887 billion to set the agency's fiscal 2010 spending level.

"Absent further congressional action, the USPTO will not be able to expend this fee income to address its urgent fiscal needs," Patent and Trademark Office Director David Kappos wrote in a Monday letter to House and Senate appropriators.

He added that, unlike past years, appropriators removed language from the fiscal 2010 spending bill that allowed the agency to spend up to $100 million more in fees than the set spending level.

Despite the projected increase in fees, Kappos warned that the dire fiscal problems the agency faced last year when it was forced to "cut spending sharply" will likely carry over into 2010.

He said unless the agency receives more funds, it will be forced to operate on a "bare-bones budget" that would allow it to replace only a small percentage of the 500 patent examiners expected to leave this year.

But lawmakers may not be swayed by Kappos' warnings. The PTO fee projections have been overly optimistic in recent years, which has led to other programs funded by the Commerce-Justice-Science Appropriations bill to be shortchanged, a congressional source said.

In fact, House and Senate appropriators chided the agency, which is funded by fees, for using a budget process that does not adequately plan for economic downturns when fees may be less than anticipated.

"USPTO's financial situation in fiscal year 2009, while anomalous, may be repeated again. The decision to rely solely on fee income has removed USPTO from the safety net of the appropriations process and has placed it at the mercy of the economy; it has allowed USPTO to build a boom-time infrastructure that it cannot support in an economic downturn," according to the Commerce-Justice-Science fiscal 2010 Appropriations conference report.

]]>

Interior secretary cancels royalty-in-kind program

Juliana Gruenwald — Wed, 16 Sep 2009 00:00:00 -0400

Interior Secretary Ken Salazar on Wednesday announced he is terminating a controversial program that allows industry to provide the federal government with oil and gas instead of cash for the use of public lands.

Salazar made the comments during a House Natural Resources Committee hearing on legislation that would revamp federal programs governing oil and gas leasing and the federal royalty system.

"It is time to end the royalty-in-kind program," he said. In his written testimony, Salazar said it would be a "phased-in" termination of the program so it could be transformed into a "more transparent and accountable royalty collection program."

The program, run by Interior's Minerals Management Service, came under fire last year following the release of a series of Interior Department inspector general reports that found ethical lapses by MMS employees, including reports that agency employees engaged in improper social relationships with industry officials and received unauthorized gifts.

Salazar said in addition to ending the royalty-in-kind program his department also wants to work with Congress on "royalty simplification."

In written testimony, the GAO's Frank Rusco said the royalty-in-kind program "continues to face challenges," particularly related to Interior's management and oversight of the program.

House Natural Resources Chairman Nick Rahall, D-W.Va., applauded the decision to terminate the program. "I've been calling for [such an action] for several years," he said. "I think it will end the opportunity for mischief ... and perhaps [provide] a more decent return to American taxpayers."

American Petroleum Institute President Jack Gerard, however, said in a statement that the program is an effective "means of ensuring that the American people receive fair compensation for development of federal resources," providing $6.6 billion in oil and gas deliveries in fiscal 2008.

Gerard said terminating the royalty-in-kind program would increase administrative costs and require much more paperwork to determine the value of oil and gas production.

"We urge Secretary Salazar to carefully weigh the impacts his 'fundamental restricting' of the royalty system could have on U.S. production of oil and gas, American jobs and revenue to the government," Gerard said, adding that his industry is ready to work with the Obama administration to improve the royalty collection system.

]]>

Postal Service health is still a concern

Juliana Gruenwald — Thu, 30 Jul 2009 00:00:00 -0400

While there is little disagreement that the U.S. Postal Service is facing a severe financial crisis, lawmakers voiced concerns on Thursday over the proposed solutions, which include closing some branches and possibly reducing deliveries to five days a week.

GAO this week said it was adding the Postal Service to its list of "high-risk areas" needing attention by Congress.

It said the USPS is facing a "deteriorating financial situation" and is on track to end the year with a net loss of $7 billion. Its financial woes are due to the ailing economy and declining mail volumes as more people and businesses bypass snail mail for e-mail, text messaging and other forms of electronic communications.

Mail volume for fiscal 2008 declined by 9.5 billion pieces and had declined by double that amount for this year as of May.

At a House Oversight and Government Reform Federal Workforce and Postal Service Subcommittee hearing, lawmakers pressed the USPS for details on what criteria would be used in determining which of the proposed 3,200 suburban and urban branches under consideration would be closed.

USPS acting Vice President Jordan Small said fewer than 1,000 post offices out of the list of 3,200 are likely to be closed. The criteria USPS will use in determining whether to close a facility is a branch's proximity to other branches and the consuming habits of postal customers in that area.

He declined to give an estimate of how much would be saved by the closures and by eliminating Saturday deliveries. Small said USPS would have a better sense of the estimated cost savings in October when a study on such moves is complete.

But some lawmakers voiced concern about the potential impacts on their communities. "While I admit, the finances here are very grave ... there is a need to conduct ourselves with, I think, a thoughtful approach ... and do it in a way that causes the least amount of disruption," Federal Workforce and Postal Service Subcommittee Chairman Stephen Lynch, D-Mass., said. Rep. Gerry Connolly, D-Va., said many of his constituents who have long commutes to work would be unable to visit a post office if they are not open in the evening.

Del. Eleanor Holmes Norton, D-D.C., chastised the postal service for taking too long to implement the necessary reforms but then quizzed Small on whether any post offices in Washington are on the list of possible closures. For the most part, business groups dependent on the postal service said they support the proposed changes if they will help ensure USPS's viability.

But they voiced strong opposition to raising postal rates. Noting that the bad economy has hurt their industry as well, "mailers cannot shoulder another rate increase," the Direct Marketing Association's Jerry Cerasale said. Federal Workforce and Postal Service Subcommittee ranking member Jason Chaffetz, R-Utah, said lawmakers should consider providing USPS with economic stimulus funds and urged USPS to do more to make itself more relevant, perhaps through assisting in conducting the 2010 census.

]]>

Witnesses back efforts to make FEMA an independent agency

Juliana Gruenwald — Fri, 15 May 2009 00:00:00 -0400

During a hearing on FEMA, the panel largely served to underscore Transportation and Infrastructure Chairman James Oberstar's efforts to remove FEMA from the Homeland Security Department. Oberstar introduced a bill in February that would make FEMA an independent, Cabinet-level agency reporting directly to the president. Oberstar noted that he had fought efforts by the Bush administration to include FEMA in Homeland Security when the department was created in 2002. Oberstar said at the hearing that he warned at the time that the department would "move people out of FEMA, money out of FEMA."

"It is unfortunate that what we predicted came true," said Transportation and Infrastructure ranking member John Mica, who has co-sponsored Oberstar's bill. Mica and the witnesses highlighted the well-publicized problems FEMA had in responding to 2005's hurricanes Katrina and Rita.

Witnesses noted that resources and staff have been shifted out of FEMA and into other DHS functions and said the current structure stifles FEMA's decision-making by requiring input from DHS officials. Larry Larson of the Association of State Floodplain Managers noted that the agency's focus has shifted to terrorism preparation and away from hazard mitigation. Despite these problems, lawmakers and some witnesses praised President Obama's pick to head FEMA, Craig Fugate, who most recently headed Florida's disaster relief agency. He was confirmed this week to his post.

While supportive of Oberstar's bill, emergency management consultant Jerome Hauer said he disagreed with the lawmaker's call to remove the terrorism response function from FEMA, saying "emergency management is emergency management" whether it's natural or man-made. He said a transition group would need to be put in place to support FEMA as it makes the transition back to an independent agency or the effort will fail.

Despite the well-publicized problems with FEMA, Oberstar and others noted that they face an uphill battle to remove FEMA from DHS. While FEMA officials were not at the hearing, Homeland Security Secretary Janet Napolitano said this week that the Obama administration believes FEMA should remain part of the department. Still, Oberstar said his committee would move his legislation this year.

]]>

Report calls for better management at SEC

Juliana Gruenwald — Wed, 11 Feb 2009 00:00:00 -0500

The U.S. Chamber of Commerce Wednesday released recommendations aimed at improving the Securities and Exchange Commission's regulatory effectiveness primarily by improving how the agency manages itself.

The agency has come under intense criticism given the problems in the financial markets and the agency's failure to act more quickly against investment adviser Bernard Madoff, who is accused of creating the largest Ponzi scheme in history.

While there has been much discussion of whether the agency has adequate resources to do its job, former SEC Secretary Jonathan Katz, the report's author, said there has not been enough focus on the "allocation and management" of SEC resources.

Given this, many of the recommendations are focused on strengthening the management, structure and oversight of the agency. For example, the report calls for the hiring of a chief operating officer with "sufficient" authority to oversee daily operations throughout the SEC.

It called for the five-member commission to play a greater role in the application and interpretation of regulator policy. This may require congressional action to amend the Sunshine Act, which requires that all meetings of the commission be open to the public, to allow for greater communication between the commissioners and staff.

In addition, the report called for adding staff with expertise in economics, capital markets operations and the business operations of regulated firms. The report also called for the creation of "an accelerated conditional approval process for new investment products or services." Katz said such a move would take "the burden off the staff to predict the future" and would promote innovation.

The report made 23 recommendations based on discussions with outside experts and SEC officials and staff. The suggestions are focused on three core functions of the agency: staff no-action letters, which allow companies and financial services to gain informal staff advice on the legality of a new service or product; exemptive orders, which provide investment firms with exemptions from statutory requirements; and self-regulatory organization rule orders.

The report calls for an expedited process for those routine applications for exemptive relief that mirror past exemptive relief orders and for setting deadlines for staff review and action. In addition, the SEC should publish guidelines distinguishing the use of no-action letters and exemptive orders, the report said.

]]>

Senate panel approves policies for release of sensitive documents

Juliana Gruenwald and Terry Kivlan — Fri, 26 Sep 2008 00:00:00 -0400

The Senate Homeland Security and Governmental Affairs Committee Tuesday approved legislation that would establish polices and procedures for the designation and release of sensitive but unclassified government information.

The draft bill, offered by Homeland Security and Governmental Affairs Chairman Joseph Lieberman, I-Conn., cleared on a voice vote in a committee meeting off the Senate floor.

It would establish a Controlled Unclassified Information Office within the National Archives and Records Administration. The office would be responsible for developing and issuing polices and procedures "governing the designation, safeguarding and dissemination of controlled unclassified information" from federal agencies whether in print or electronic form.

The bill calls for the policies to be developed with the help of a new Controlled Unclassified Information Council, which would be chaired by the director of the new office and made up of officials from federal agencies.

The draft measure also would require federal departments and agencies that use sensitive but unclassified information to implement the policies developed by the new Archives' office, designate a senior officer to sit on the Controlled Unclassified Information Council and establish a process for noncompliance or misuse of sensitive unclassified data. The bill would authorize $14.5 million over five years to fund the bill's requirements.

The committee started work on the bill last week but could not take a final vote due to a lack of a quorum.

On a voice vote at the initial markup meeting, the panel adopted a substitute amendment making technical changes to the draft bill and adding language to the section dealing with the responsibilities of the new Controlled Unclassified Information Office.

The language would require that all relevant documents related to the controlled unclassified information framework called for under the bill are "made available on the Web site of the National Archives and Records Administration in a timely manner." In addition, under the provision dealing with agency requirements, the substitute added language that would require agencies to establish a process that allows agency officials or employees to challenge the use of controlled unclassified information markings.

In a May 2007 letter to several administration officials, Lieberman and ranking member Susan Collins, R-Maine, voiced concern over the lack of government-wide procedures for handling sensitive but unclassified government information, which they said may hamper information sharing particularly among agencies involved in deterring future terrorist attacks.

]]>

Grant program approved to preserve presidential documents

Juliana Gruenwald and Terry Kivlan — Fri, 26 Sep 2008 00:00:00 -0400

The Senate Homeland Security and Governmental Affairs Committee Tuesday approved legislation that would establish a competitive grant program to help in the preservation of historical documents from past presidents.

The bill, which was sponsored by Sen. John Warner, R-Va., and cleared on a voice vote in a committee meeting off the Senate floor, would establish a competitive grant program for organizations to help promote historical preservation and access to historical records and documents from past presidents who do not have a library that is maintained by the federal government.

The committee started work on the bill during a markup meeting last week but could not complete deliberations due to a lack of a quorum.

During the initial markup meeting, Warner said there were no federally supported libraries for presidents prior to Herbert Hoover. "The documents and records of these presidents are scattered throughout America," Warner said. "In our view, the federal government should be taking an active role in encouraging the preservation of these documents."

Before the committee adjourned, it approved a substitute amendment to the bill that would allow the National Archives to publish the founding fathers' documents and other important historical documents online in an effort to provide those who do not live near major libraries access to such documents.

In addition, the substitute, which was offered by Sen. Tom Carper, D-Del., and Warner, would require the Archives to develop a plan that prioritizes capital improvements at federally maintained libraries, which would provide Congress with information on which libraries are most in need of repairs.

The amendment also calls on the agency to develop a plan for future presidential libraries that will reduce the costs to the federal government, improve public access and provide better access to historical documents.

]]>

Homeland Security officials defend virtual border fence program

Juliana Gruenwald — Thu, 11 Sep 2008 00:00:00 -0400

Homeland Security Department officials Wednesday defended management of the effort to deploy a virtual fence along the Southern border, saying that they would rather delay implementation to ensure the program works.

During a hearing before the House Homeland Security Committee, Customs and Border Protection Commissioner Ralph Basham also took issue with the committee for the title of the hearing, "Mismanagement, missteps and missed benchmarks: Why the virtual fence has not become reality."

He said the agency would not rush to deploy something that doesn't work. The agency's priority is to get the virtual fence, known as the Secure Border Initiative or SBInet, right before deploying it.

He voiced frustration that the agency has been criticized for moving too fast to deploy unproven technology while also being blasted for missing deadlines. "While I can't say SBInet is not without problems, it is not a failure," Basham said, adding that the agency's "commitment to get it right" has never been stronger.

Basham's comments came in response to the latest Government Accountability Office report on the project. "SBInet program uncertainties, such as not fully defined program expectations, changes in deployment schedules and confusion over the applicability of environmental regulations continue to delay SBInet technology deployments," GAO's Richard Stana told the committee. Deployment of the first phase of the project in Tucson and Yuma, Ariz., and El Paso, Texas, was supposed to be completed in 2008, but it has been pushed to early next year.

When asked by Homeland Security Committee Chairman Bennie Thompson, D-Miss., whether the technology requested for the virtual fence's demonstration project is working as expected, Stana said it "has not met expectations" and the contract language was written in a manner that makes it difficult to assess.

"We were told that this is not a complicated procurement," Thompson said. The committee wants to "see whether the taxpayers are getting what they paid for." Basham and his deputy, Jayson Ahern, noted that there has been some confusion over the purpose of the demonstration project and even if it has not operated as hoped, agency officials have learned much from the effort. "That's what a proof of concept is," Ahern said.

Basham stressed that SBInet and other technologies are just one piece of the agency's comprehensive effort to secure the border, which also includes adding more border patrol agents, using unmanned aerial vehicles and constructing a physical fence along 670 miles of the border. Basham told the committee that all 670 miles of the physical fence will be completed, under construction or under contract by December.

CPB has asked Congress for approval to shift some funds from SBInet to help deal with higher fuel and material costs for the physical fence.

Homeland Security Committee ranking member Peter King, R-N.Y., defended the agency's efforts and chastised the committee for failing to pass a Homeland Security authorization bill. "So while you're sitting here today listening to abuse about what hasn't been done, I think a lot of people should be pointing fingers at themselves as far as what hasn't been done on this end as far as getting the job done," he said.

]]>

Power grid vulnerable to cyberattacks, committee told

Juliana Gruenwald — Thu, 11 Sep 2008 00:00:00 -0400

A House Energy and Commerce subcommittee is aiming to take up legislation next week that would provide the Federal Energy Regulatory Commission with additional authority to help protect the nation's power grid from a cyberattack.

During a hearing before the Energy and Commerce Energy and Air Quality Subcommittee, several witnesses and lawmakers argued that the threat to the nation's power grid from cyberattacks is real and urged lawmakers to enact legislation to give FERC additional powers to order utilities to take the necessary steps to address the problem.

"The Department of Energy regularly discovers new vulnerabilities in the control systems employed by many utilities," said Kevin Kolevar, the department's assistant secretary for electricity delivery and energy reliability. "This is not hyperbole ... cyberattacks against control systems have occurred and they are becoming increasingly sophisticated."

FERC argues that current law is inadequate to allow the agency to take action to protect against cybersecurity attacks in a timely and confidential manner. And while the North American Electric Reliability Corp., the industry self-regulatory group overseen by FERC, issued an advisory in 2007 to 1,800 power operators and owners outlining immediate and longer term steps they should take to address cybersecurity vulnerabilities, compliance with the advisory was voluntary. A recent FERC audit of 30 utilities found that most were not in compliance with the advisory.

Draft legislation developed by the subcommittee would give FERC the necessary authority it needs to require compliance with cybersecurity standards and issue emergency orders to help protect against an immediate cybersecurity threat, Energy and Commerce Energy and Air Quality Subcommittee Chairman Rick Boucher, D-Va., said. However, Boucher cited some outstanding disagreements over such issues as the definition of a cybersecurity threat, whether the legislation should also address immediate physical threats to utilities, and whether there should be a sunset on the emergency powers granted under the measure.

If the outstanding issues can be addressed, Boucher said he plans to mark up the legislation next week. FERC Chairman Joseph Kelliher said he believed the draft legislation strikes the right balance and said the agency would agree to a one-year sunset on the emergency powers provided in the bill. On the definition of a cybersecurity threat, Susan Kelly of the American Public Power Association said her group favors a more narrow definition than one favored by FERC.

]]>

House panel approves chemical security bill

Juliana Gruenwald — Mon, 31 Jul 2006 00:00:00 -0400

The committee approved the measure on a voice vote after negotiating compromises on two controversial amendments. The legislation (H.R. 5695) would authorize the Homeland Security Department to regulate chemical plants and require them to conduct vulnerability assessments based on standards set by the department.

The bill would require the department to rank chemical plants into one of four risk-based tiers. Among the factors that facilities assigned to the high-risk tier would have to include in their security plans include security measures to address a facility's vulnerabilities to a terrorist attack; a plan for periodic drills with employees, law enforcement and first responders; and plans and procedures that would be used in response to a terrorist attack.

During a February 2004 hearing on security vulnerabilities at chemical plants, the Government Accountability Office testified that "experts agree that the nation's chemical facilities may be attractive targets for terrorists intent on causing massive damage."

John B. Stephenson, the Government Accountability Office's director of Natural Resources and Environment, told a House Government Reform subcommittee that, "Unlike water treatment facilities and nuclear power facilities, chemical facilities are not subject to any federal requirements to assess and address security vulnerabilities against terrorist attacks."

Before approving the bill, the committee adopted a substitute amendment that made minor changes to the bill including a provision that would require chemical facilities to provide a specific point of contact in their security plans.

The committee also debated two controversial amendments before postponing action on the bill Thursday. After postponing action, committee leaders negotiated compromises with the authors of the two amendments, Reps. Edward Markey, D-Mass., and James Langevin, D-R.I. The panel on Friday adopted modified versions of both amendments by voice vote.

Markey's original amendment would have required chemical facilities to use "inherently safer technologies" unless the Homeland Security Secretary determines that such technologies could not be "feasibly incorporated," would make it too difficult or costly for a facility to remain in business or would not "significantly" reduce the risk of death, injuries or other adverse affects resulting from a terrorist attack on a chemical facility. Other facilities would be required to use such technologies if the operator of such facilities determined it would be "practicable" to do so.

"Too often, we worry about the expense to industry" of imposing new requirements, said Rep. Zoe Lofgren, D-Calif., during Thursday's debate on the amendment, adding, "but think of the costs if there is a disaster" caused by a terrorist attack.

Rep. Dan Lungren, R-Calif., the bill's sponsor, voiced opposition to Markey's original amendment. He noted that during the committee's hearings on the legislation, chemical engineering experts testified that inherently safer technologies are still evolving. He also argued that just because a chemical facility may be "safer doesn't mean it's more secure."

The amendment is "putting too much faith into unproven, undefined technologies," Lungren said.

And Rep. Ginny Browne-Waite, R-Fla., questioned whether a provision in the amendment requiring the establishment of a publicly available clearinghouse with data about technologies aimed at reducing the consequences of a terrorist attack would provide terrorists with a "road map" on how to attack such facilities.

Markey insisted that the amendment would not provide any information on a specific chemical plant.

The compromise version of Markey's amendment adopted Friday would require only high-risk chemical facilities to consider using inherently safer technologies. High-risk facilities would have to use such technologies if the Homeland Security Secretary finds that they will significantly reduce the consequences from an attack, can feasibly be incorporated into a facility, and would not significantly impair the facility from operating.

The compromise amendment also would allow a facility to appeal a decision requiring use of inherently safer technologies to a board made up of government officials, security experts and industry representatives. And the modified amendment would ensure that protected information not be included in the data clearinghouse.

A handful of Republicans, however, continued to question the feasibility of inherently safer technologies and the potential burden on businesses.

"You could be mandating new technologies that don't exist," said Rep. Charles Dent, R-Pa. Lungren said he still has concerns about such technologies and pledged to hold hearings on them next Congress if he is still chairman of the Economic Security, Infrastructure Protection and Cyber security Subcommittee.

The committee also agreed to a modified version of Langevin's amendment. As originally proposed, it would have prohibited preempting more stringent state laws and regulations unless those laws and regulations "conflict" with the bill. In addition, the amendment also would have ensured that states could adopt or enforce laws or regulation aimed at problems "other than reducing damage from terrorist attacks."

Langevin's amendment was similar to language in a chemical security bill (S. 2145) approved last month by the Senate Homeland Security and Governmental Affairs Committee.

During debate Thursday on the Langevin's original amendment, Rep. Bill Pascrell, D-N.J., and others said the bill as drafted could "have the effect of weakening" security at chemical plants, pointing to New Jersey in particular. New Jersey is one of a handful of states that has enacted legislation dealing with chemical security and Gov. Jon Corzine wrote the committee Wednesday with concerns about the bill.

But Lungren and others argued for the need for uniform national standards and noted that there is already language in the bill that would allow states to continue to impose tougher standards as long as the Homeland Security secretary determines that those laws and regulations do not "frustrate" the federal regulations.

The compromise amendment approved by the committee maintains some of the original bill language by saying that a state could pass a law or regulation requiring tougher security measures as long as it does not frustrate the intent of the federal standards.

But the amendment also called for the inclusion of report language that would define "frustrate" and make clear that efforts by states to require chemical facilities to use or consider using inherently safer technologies are not preempted by the bill, according to Langevin's office.

Both Markey and Langevin gained assurances from House Homeland Security Chairman Peter King, R-N.Y., that he would work to ensure that their amendments are not changed or stripped from the bill by the Rules Committee, which decides what bills and amendments can be offered on the House floor.

The committee also adopted three other less-controversial amendments including one from Rep. Jane Harmon, D-Calif., that would establish an office of chemical security at the Homeland Security Department.

The panel also adopted en bloc two amendments from Texas Democrat Sheila Jackson Lee. One would require that when chemical companies request a hearing to dispute fines for violating the act that it be a "formal hearing" that would provide an individual with "certain rights, which may include the right to have counsel present, the right to cross-examine witnesses, the right to present evidence, and the right to a record of the proceedings."

Her other amendment would ensure that third-party auditors hired by Homeland Security to conduct reviews of security plans and vulnerability assessments or to inspect facilities do not have conflicts of interest.

When asked about the prospects of moving the legislation, particularly in the Senate, Lungren said after the markup that with the November elections just three months away and with the fifth anniversary of the Sept. 11, 2001 terrorist attacks, he expects "it will dawn on people that we ought to show a legislative accomplishment in the area of security ... This bill will be seen as a serious accomplishment."

The bill also has been referred to the House Energy and Commerce Committee. A committee spokeswoman did not return a call by press time on whether the panel plans to take up the bill when lawmakers return from their August break.

]]>

Panel moves bill to deal with pandemic, health disasters

Juliana Gruenwald — Thu, 20 Jul 2006 00:00:00 -0400

The legislation (S. 3678) was approved by voice vote by the Senate Health, Education, Labor and Pensions Committee. It would reauthorize a 2002 law, the Public Health Security and Bioterrorism Preparedness Act, passed in response to the Sept. 11, 2001 terrorist attacks. It was aimed at preparing local, state and federal medical and health professionals to respond to a terrorist attack and other emergencies.

Supporters said S. 3678 would build on lessons learned from the problems surrounding the local, state and federal response to Hurricane Katrina and by the need to prepare for the outbreak of a potential pandemic from the Avian flu, also known as the bird flu.

Health officials from around the globe are taking steps to prepare for the possibility that the bird flu could turn into pandemic. The bird flu has killed 132 people in Asia, Africa and the Middle East since 2003, according to the World Health Organization. While the flu has been spread by contact with infected birds, health officials worry that it could cause a major health crisis if it is spread more easily between humans, who have little or no immunity to the virus, according to the Health and Human Services Department.

From Hurricane Katrina, "we have learned about the need for centralized command and clear lines of authority when preparing for, and responding to a public health crisis," said Sen. Richard Burr, R-N.C., chairman of the committee's Bioterrorism and Public Health Preparedness Subcommittee and S. 3678's sponsor. "This need, along with the potential for a deadly bird flu pandemic, makes it even more important we improve our public health and medical preparedness and response for emergencies and disasters."

He noted that in the wake of Hurricane Katrina, the Homeland Security Department found that 68 percent of states said they did not believe they had disaster plans that were capable of handling a catastrophic event like Katrina, which devastated the Gulf Coast last summer and exposed problems in planning and response at all levels of government.

During a July 14 field hearing in New Orleans by the subcommittee, public health experts discussed the problems hospitals and other health providers experienced in the aftermath of Katrina including inadequate evacuation plans for hospitals, a lack of reliable communications and insufficient stockpiles of supplies such as food, medicines and generators.

The bill would authorize more than $1 billion a year in federal funding for HHS grants for public health and medical preparedness and would require states by 2009 to provide a 5 percent match of federal funding and a 10 percent match beginning in 2010.

In addition, the bill would designate the secretary of Health and Human Services as the lead federal official responsible for public health and medical responses to emergencies, including a flu pandemic; require states to meet performance standards developed by the HHS secretary to ensure a basic level of preparedness for disasters; and establish a system for promoting, organizing and training health care volunteers for disasters.

It also would require HHS to build on state and local efforts to establish a "near real-time" public health situation awareness network aimed at detecting and containing infectious disease outbreaks and aims to improve the ability for local hospitals to respond to emergencies by promoting the use of mobile medical assets.

"This reauthorization provides better coordination and better preparation between local, state and federal authorities; a bigger and better supply of drugs, vaccines and other medical products; and greater accountability and better evaluations of each state's preparedness," said full committee Chairman Mike Enzi, R-Wyo.

By voice vote, the committee approved a substitute amendment that made technical changes to the bill, according to Burr. While committee members on both sides of the aisle expressed support for the legislation, Sen. Christopher Dodd, D-Conn., said he was concerned that the bill fails to fix two "glaring" problems. He said the 2002 health security and bioterrorism law gave vaccine manufacturers "sweeping" protections from liability and did not provide adequate compensation for those who have had adverse reactions to vaccines.

He noted that problems with the small pox vaccine in recent years led some emergency first responders to refuse to take the vaccine. While he supports some liability protections for vaccine producers to ensure there are enough manufacturers, he said the current protections could encourage "fly-by night operators" to manufacture shoddy vaccines.

"If you have a problem with the product and have a problem with distribution of the product ... than all the other charts and flow charts and coordination are not going to work," Dodd said following the markup.

Dodd said while he has raised his concerns with the bill's sponsors, he "may" offer an amendment to address his concerns when the bill goes to the Senate floor.

Sen. Patty Murray, D-Wash., also said she would like to see language added to the bill to ensure that states that border Canada could use federal funds to work with officials from Canadian provinces to coordinate preparedness and response efforts.

Burr said he planned to meet with Senate Majority Leader Bill Frist, R-Tenn., Wednesday and would "encourage" him to move the bill to the Senate floor before the August recess.

"This is one of the few pieces of legislation that has passed any committee with tremendous bipartisan support, I would anticipate that the leader is anxious to get this up" on the floor, Burr said following the markup.

]]>

House committee OKs standards for security tools, training

Juliana Gruenwald — Wed, 14 Jun 2006 00:00:00 -0400

The measure, H.R. 4941, also would require the Homeland Security Department to create a program for transferring to the private sector technology developed with federal funding and aimed at preparing for and responding to terrorism and disasters. It was approved by voice vote.

The committee approved, by voice vote, a substitute amendment to the bill. Among the changes included in the substitute are several new provisions including language requiring department officials to develop a plan detailing how civil rights and civil liberties issues will be taken into account and used in research and pilot programs.

In addition, the amendment would require the department to develop a strategic plan for the department's science and technology activities and direct the National Research Council to prepare a guide for researchers that informs them about "potential homeland security implications of their work and how laws and regulations apply to such research."

Some committee members expressed concern that the legislation does not include funding for research into improving rail security. Rep. Bennie Thompson of Mississippi, the committee's top Democrat, and others argued that "without specific funding, DHS will not focus on rail security."

Delegate Eleanor Holmes Norton, D-D.C., offered an amendment that would have authorized $50 million annually for three years for rail security research and development projects, such as those aimed at reducing the risk from hazardous, chemical, biological and radioactive substances, and developing technologies for sealing rail cars.

The committee approved by a 15-13 vote an amendment that stripped from Norton's amendment the language authorizing a specific amount of money for such projects and instead authorized "such sums as may be necessary."

Christopher Shays, R-Conn., argued that Norton's amendment as originally drafted would have limited the amount of funding appropriators could provide for rail security research and could complicate efforts to move the bill.

But Norton said that while the amount she proposed is "embarrassingly modest," appropriators may provide nothing unless the committee authorizes a specific amount of funding. Shays' language will "ensure that no money is appropriated," Norton said. After adding Shays' language, the panel approved her amendment by voice vote.

The committee rejected on a 13-15 vote an amendment that would have authorized $50 million in funding for cyber-security research and development in fiscal 2007. Loretta Sanchez, D-Calif., argued that the committee should include specific funding to make a "clear statement" of the importance of improving cyber security.

"There is very little leadership out of Homeland Security on this," Sanchez said.

But Curt Weldon, R-Pa., argued that the Defense Department is spending "hundreds of millions" of dollars on cyber and information security and that the committee should not specify funding for Homeland Security without analyzing what other departments are doing.

The committee approved, by voice vote, an amendment that would require the National Institute of Standards and Technology and other agencies to test emergency-responder communications equipment to ensure that it meet standards set by the Association of Public Safety Communications Officials International. The amendment also would require that results of tests conducted by federal researchers be published to help educate first responders.

An amendment to require the Government Accountability Office to study the for the most recent homeland security grants was withdrawn. The agency has come under fire recently for reducing funding to New York and Washington, the two cities targeted by the 2001 terrorist attacks.

]]>

Senate banking panel approves flood insurance bill

Juliana Gruenwald — Thu, 25 May 2006 00:00:00 -0400

Supporters of the draft legislation say the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency, was poorly designed and has been pushed into bankruptcy following the 2005 hurricane season.

The program was expected to pay out an estimated $23 billion in flood insurance claims from 2005 for Hurricanes Katrina, Rita and Wilma -- more than the total amount of payments it has made since its creation in 1968, as Senate Banking Chairman Richard Shelby, R-Ala., noted at a January hearing.

"We stand at a crossroads. We can reform this program or we can continue to allow it to founder," Shelby said at Thursday's markup. Committee members said it is important for Congress to address problems with the program soon, given that the next hurricane season starts next month.

By a 20-0 vote, the committee approved the legislation that would eliminate subsidized rates for flood insurance for vacation homes, businesses and properties that have suffered "severe repetitive" losses due to flooding.

When the program was created, structures built prior to 1973 were given subsidies with the expectation that most would be destroyed or rebuilt within 10 years, Shelby said. He noted, however, that about 25 percent of structures in the program still receive a subsidy, which is "one of the greatest reasons why the flood insurance program is insolvent."

In addition, the bill would establish stringent standards that the program must use to update flood maps used to determine flood insurance rates. Shelby said updating the maps will help the program develop more accurate pricing for flood insurance policies.

"Many people don't know they are in danger of a flood" because of outdated flood maps, Sen. Jack Reed, D-R.I., said. The bill also would require lenders to maintain flood insurance coverage for all mortgages in the 100-year floodplain. The measure would increase penalties that can be levied against lenders that fail to comply.

The bill would authorize additional funding needed to cover claims from flooding caused by Hurricane Katrina and the other 2005 storms and forgive the debt owed by the NFIP to the federal government. In addition, the bill would create a mandatory reserve fund to provide funding to help pay future claims without seeking additional money from the federal government.

The bill also would require several studies, including directing Government Accountability Office to complete an audit of the flood insurance program and mandating the Treasury Department to do a study on the remaining subsidies in the program.

He said the information will help the committee in developing long-term reforms when the program is up for reauthorization in the next Congress. Sen. John Sununu, R-N.H., said he may offer an amendment on the Senate floor to eliminate subsidies for flood insurance on expensive primary residences.

He argued that, given the financial difficulties facing the program, it does not make sense to "subsidize the risks incurred by someone with a $3 million house."

]]>

House panels OK conflicting plans to fix FEMA

Juliana Gruenwald and Christian Bourge — Wed, 17 May 2006 00:00:00 -0400

At the House Transportation and Infrastructure Committee, members approved by voice vote legislation supported by panel Chairman Don Young, R-Alaska, and Government Reform Committee Chairman Tom Davis, R-Va., to make FEMA independent. Their legislation would elevate FEMA to a Cabinet-level agency, with its director reporting to the president.

Homeland Security Committee members unanimously approved their competing bill to expand the agency's powers within the department. The measure also would establish a cadre of politically appointed undersecretaries and assistant secretaries to address specific problems, such as the ability of emergency responders to communicate with each other in emergencies.

Homeland Security Committee Chairman Peter King, R-N.Y., called his panel's bill the "first major step" to deal with FEMA's shortcomings in a "constructive, positive" way. But Young called on his committee members to "stick with the troops" to ensure that the House takes up his bill first. "We made a mistake in the structure of Homeland [Security]," Young said.

The Transportation and Infrastructure bill next goes to Government Reform.

King said that "almost everything except where FEMA ends up" is open for discussion and that the Young-Davis bill and his panel's measure are compatible in most ways. "This is not one of those brutal battles," he said. "I am certainly going to work with them."

Transportation and Infrastructure ranking Democrat James Oberstar of Minnesota noted that he recommended at the time FEMA was put into the Homeland Security Department that the White House not approve the new organizational structure. Oberstar and others said the department's primary focus on preventing terrorism has undermined FEMA's ability to deal with natural disasters and other emergencies.

Oberstar also rejected the Senate Homeland Security and Governmental Affairs Committee's idea of creating an agency to deal with national emergencies and disasters. "I don't think we should scrap FEMA," he said. "We have the framework in place. We just need to reconstitute it."

Young promised to work with committee members who raised concerns such as strengthening language to provide job protections to people who temporarily assist FEMA during emergencies.

The Homeland Security Committee bill was drafted by Emergency Preparedness Subcommittee Chairman Dave Reichert, R-Wash., and Investigations Subcommittee Chairman Michael McCaul, R-Texas. It has the support of King and Homeland Security ranking Democrat Bennie Thompson of Mississippi.

]]>

Leaders rap poor communication in disaster response

Juliana Gruenwald — Wed, 28 Sep 2005 00:00:00 -0400

At the same time, the officials reported receiving varying degrees of support from the Federal Emergency Management Agency, which has come under intense criticism for its response to the disaster.

"At every step of our response efforts, a breakdown in communications hindered our abilities to respond more effectively and efficiently," Baton Rouge Mayor Melvin (Kip) Holden told the Homeland Security and Governmental Affairs Committee during a hearing about efforts to assist Hurricane Katrina victims.

His community received a major influx of refugees from New Orleans and other places, turning Baton Rouge into the state's largest city. Holden and others complained of the inability to communicate among agencies because of incompatible communications and of a lack of information being shared with affected communities.

"Without coordination with our state and federal governments, our effectiveness will be limited and the suffering of our friends, our neighbors and our families will be prolonged for no reason," said Fayetteville Mayor Dan Coody, whose Arkansas community also took in many hurricane victims.

Coody and other local officials also complained about the response they have had from FEMA. Holden said, as of this week, the agency had yet to set up a designated FEMA contact in Baton Rouge for individual assistance for hurricane victims -- a complaint echoed by Brookhaven, Miss., Mayor Robert Massengill, whose city was damaged by the hurricane and also took in evacuees from other communities. He said he was finally contacted by FEMA about setting up an assistance center after it was revealed that he would be testifying before the committee.

"Evacuees are terribly disappointed with FEMA," Massengill said.

It took two-and-a-half weeks, Coody said, before his city heard from FEMA. He noted that his community had many needed supplies on hand that could have been sent to other cities if there was better coordination. And Holden noted that while he has submitted a request for reimbursement of expenses the city has incurred in caring for hurricane victims, "we have not received a dollar" from FEMA.

However, the top official with Harris County, Texas, which is home to Houston, where thousands of evacuees were sent from Louisiana, said his contacts with local FEMA officials were much more positive. Harris County Judge Robert Eckels said given his county's experience with past hurricanes and emergency preparedness training, his community "knew what to expect" from FEMA. One issue he did highlight was problems in communicating with FEMA and state officials in Louisiana, which left Houston officials confused about when hurricane victims would arrive. Homeland Security and Governmental Affairs ranking member Joseph Lieberman, D-Conn., said one issue that the committee has encountered is that "there is a lot of confusion about what FEMA can and cannot do. There are things you shouldn't turn to FEMA for."

]]>