The House is also slated to vote on a defense authorization bill (HR 4310), which has a small provision with big implications for future transportation fuels. The Defense Department has been developing advanced biofuels for its ships and planes, helping make a market along with other federal agencies. The DOD’s goal is to curb dependence on oil products, provide reliable home-grown motor fuels with less wild price swings than oil, and perhaps ultimately deploy biofuel facilities that could shrink fuel tanker convoys that make inviting targets for adversaries. Commercial ship lines, railroads, airlines and other motor fuel users are watching, partly because biodiesel and jet fuel could help trim their emissions and partly in hopes of getting fuels with less volatile costs. House conservatives don’t like the DOD paying for alternative fuels when oil-derived fuels may be cheaper, and the authorizing bill would exempt the DOD from the alternatives program. That could cripple the effort since the DOD is the world’s largest buyer of oil fuels and its fleets are key to developing new-era fuel options.

Source:  CQRollCall.com

Today, Acting Undersecretary and ARPA-E Director Arun Majumdar announced that he will be resigning his role as Acting Undersecretary effective immediately, and Assistant Secretary David Sandalow has been chosen as his replacement.  Furthermore, Dr. Majumdar also announced that he will be resigning his role as Director of ARPA-E effective June 8, 2012, and ARPA-E Deputy Director Eric Toone will take over leadership of the organization.

Dr. Majumdar came to Washington, DC two and a half years ago tasked with setting up the Advanced Research Projects Agency – Energy, a new agency in the Department of Energy to fund projects that will develop transformational technologies that reduce America’s dependence on foreign energy imports; reduce US energy related emissions (including greenhouse gasses); improve energy efficiency across all sectors of the US economy and ensure that the US maintains its leadership in developing and deploying advanced energy technologies.

Dr. Majumdar has successfully accomplished the task put forth by the Obama Administration, to establish America’s first agency dedicated to catalyzing energy breakthroughs to secure America’s future.  With ARPA-E now in its third year and a solid leadership team in place, Dr. Majumdar feels that it is an appropriate time to step down to be with his family in California.  He will cherish the time he spent serving his country at ARPA-E and the Department of Energy and hopes that his work has helped lay the foundation for ARPA-E and America’s energy future.  He would like to thank the Obama Administration, Energy Secretary Chu and his colleagues at the Department of Energy and ARPA-E for their dedication, constant support and the enriching experience.

Congress is back in session today after a two-week break for the Easter holiday.  Appropriators in both chambers will begin moving FY 2013 annual appropriations bills this week.  The House Appropriations Committee on Wednesday will start marking up its spending bills for FY 2013 with a goal of cutting federal spending by a little more than one percent, or $15 billion.  Senate appropriators, on the other hand, will begin their markups with a slightly more generous target that would still keep annual discretionary spending relatively flat.  Senate subcommittees begin the process on Tuesday with the Commerce-Justice-Science and Transportation-Housing and Urban Development measures.  The House Energy-Water subcommittee will meet Wednesday and the Commerce-Justice-Science panel is expected to meet Thursday.  Under House rules, the draft bills will be made public 24 hours in advance of the markups; the Senate does not have a requirement for an early look.

Appropriators have yet to announce plans for writing the massive Labor-HHS-Education spending bill, which is always among the last and most controversial funding measures to move.  The bill faces an additional challenge this year with the pending Supreme Court ruling on health care reform due in June.  House appropriators might wait until after the ruling to move the bill.  Meanwhile in the Senate expects the court will uphold the law and plans to write its spending bill assuming health reform will remain intact.

Tuesday

• The Senate Appropriations Committee will hold subcommittee markups of its Commerce, Justice, Science FY 2013 spending bill and its Transportation, Housing and Urban Development FY 2013 spending bill.
• The Senate Armed Services Committee will hold a subcommittee hearing on the health and status of the Department of Defense science and technology laboratories and enterprise.

Wednesday

• The House Appropriations Energy and Water Subcommittee will mark up its Energy and Water Development FY 2013 spending bill.
• The House Energy and Commerce Committee will hold subcommittee hearings on budget and spending concerns at the DOE and FDA User Fees 2012: How Innovation Helps Patients and Jobs.
• The House Science, Space, and Technology Committee will hold subcommittee hearings on NSF Major Multi-User Research Facilities Management and Growing the Wireless Economy through Innovation.

Thursday

• The House Homeland Security Committee will hold a subcommittee hearing on the Department of Homeland Security (DHS) and DOE National Labs: Finding Efficiencies and Optimizing Outputs in Homeland Security Research and Development.
• The House Science, Space, and Technology Committee will hold a subcommittee hearing on Impact of Tax Policies on the Commercial Application of Renewable Energy Technology.
• The American Chemical Society will hold a Capitol Hill briefing on Cybersecurity and Smart Infrastructure: Ensuring Resilience and Deterrence.

The Obama Administration’s FY13 budget, released on February 13, reflects a continuing commitment to increased federal investments in research and education.  The budget would increase funding for the National Science Foundation (NSF); the Department of Energy’s (DOE) Office of Science and ARPA-E; and the Agriculture and Food Research Initiative (AFRI) in the Department of Agriculture, which supports competitive research.  It also would provide a modest funding increase for the National Endowment for the Humanities (NEH).  Similarly, funding for basic research at the Department of Defense (DOD) is essentially level despite significant cuts elsewhere in the agency. 

Funding for the National Institutes of Health (NIH) would be essentially frozen at the FY12 level.  The science portfolio at NASA would be cut by more than three percent.  

For student aid, the Administration would fully fund the maximum Pell Grant level of $5,635 and extend the 3.4 percent interest rate on subsidized Stafford loans, which otherwise would rise to 6.8 percent on July 1, 2012.  Additionally, the Administration would shift campus-based aid programs, such as Perkins Loans, toward institutions that “keep their tuition and tuition increases low,” enroll relatively high numbers of Pell-eligible students, and provide “good value.”  No additional details are available on exactly how the Administration would implement this.

The FY13 budget also contains several tax proposals of interest to research universities.  These include making the American Opportunity Tax Credit permanent and limiting the value of certain tax expenditures, including the deduction for charitable contributions for individual taxpayers, to 28 percent.  The budget would also expand the Build America Bonds program by making the program permanent, expanding eligibility to both government entities and nonprofit institutions—including both public and private universities—and expanding the allowed uses of the bonds.

The President is scheduled to deliver his FY13 budget request to Congress later this morning, kicking off the annual budget and appropriations season. While the details of the budget have remained under wraps until today, the Office of Management and Budget (OMB) released a 2013 “Fact Sheet” on Friday revealing that the budget will include strong support for research and development, including “$140.8 billion for R&D overall; increase the level of investment in non-defense R&D by 5 percent from the 2012 level, even as overall budgets decline; maintains the President’s commitment to double the budgets of three key basic research agencies (National Science Foundation, Department of Energy’s Office of Science, and National Institute of Standards and Technology Laboratories); expands and makes permanent the R&D tax credit. [Includes] Level funding for biomedical research at NIHNational Institutes of Health ($30.7 billion); and to get more out of the money, proposes new grant management policies to increase the number of new research grants by 7 percent.”

The President will also request $4 trillion in deficit reduction over the next decade in his FY13 budget, but his proposal to pay for it with revenue increases and spending cuts — already rejected by the special deficit reduction panel last fall — will make it tough to sell to Congress. Half of the deficit reduction would come by increasing revenues, including raising $1 trillion over 10 years by increasing taxes on families earning more than $250,000. Obama’s proposal would cut the deficit to $901 billion by the end of FY13, or about 5.5 percent of the gross domestic product. All told, his proposal would reduce accumulated debt by $3 trillion in addition to the $1 trillion in savings over 10 years already put in place by the BCA. If approved, Obama’s plan would void the automatic across-the-board cuts— known as a sequester— due to kick in January 2013.

Once the budget request is delivered to the Hill, both the House and Senate canCures Acceleration Network begin the annual appropriations process. The usual first step in that process is for both chambers to approve a budget resolution, which gives appropriations committees their top-line numbers on how much to appropriate. This year, however, Senate Majority Leader Harry Reid (D-NV) has announced that he won’t move a budget resolution to the floor, even if the Senate Budget Committee approves one, since the Budget Control Act (BCA) approved last August already specified the top-line number for FY13. In the House, Budget Committee Chairman Paul Ryan (R-WI) will move a budget resolution through his committee, which will likely specify a top-line number even less than what was agreed to in the BCA.

The Department of Energy today released two reports assessing US ocean wave and tidal energy resources along the US Coasts. DOE reports that the two assessments, combined with ongoing analyses of technologies and other resource assessments, show that water power, including conventional hydropower, and wave, tidal, and other water power resources, can potentially provide 15 percent of our nation’s electricity by 2030.

The reports are the most rigorous assessments thus far undertaken by DOE and its collaborative partners, including the Electric Power Research Institute (EPRI) and the Georgia Tech Research Corporation.

The DOE reports may be accessed here:

“Mapping and Assessment of the United States Ocean Wave Energy Resource”

“Assessment of Energy Production Potential from Tidal Streams in the United States”

The House released its Energy & Water Appropriations bill for FY12 today.  The bill provides a total $30.7 billion for the Energy Department and federal water projects in FY12, $5.9 billion (16 percent) less than requested by the President and $1.7 billion (5 percent) less than FY11 enacted totals.  The bill provides an additional $1 billion to the Army Corps of Engineers for emergency disaster relief in areas affected by storms, tornadoes and flooding in the Mississippi and Missouri River basins.  The funding is designated as “emergency” and does not count against the bill’s total appropriated amount.

Historically, energy- and water-related appropriations have been mostly noncontroversial and most bills have been enacted with wide margins of support by both parties.  This year, however, a number of key disputes have arisen out of the push by the House leadership to significantly reduce spending.  The disputes have centered on Republican attempts to reduce funds for general science, renewable energy, nuclear nonproliferation, advanced energy research, renewable-energy development, and a provision prohibiting the use of funds provided by the bill to supplement Clean Water Act-related regulations.

Programs of interest to UW:

Energy Efficiency & Renewable Energy (EERE)

The bill provides $1.3 billion for Energy Department energy efficiency and renewable-energy programs — $1.8 billion or 59 percent less than the President’s request and $491 million or 27 percent less than the FY11 enacted level.

Advanced Research Projects Agency – Energy (ARPA-E)

The bill provides $100 million for ARPA-E programs — $80 million or 44 percent less than the current level and $450 million or 81 percent less than the President’s request.

Science

The bill provides $4.8 billion for the science account, which funds the Energy Department’s work on basic energy research, nuclear physics, chemistry, biological and environmental sciences, fusion, and other related endeavors.  The appropriation is $616 million or 13 percent less than the administration’s request and $43 million or 1 percent less than the current level.

Congressional Schedule:  The House is in recess this week and the Senate is scheduled for recess next week (week of July 4^th).  The House has another recess scheduled for the week of July 18^th, and both chambers have recess scheduled for the month on August (August 8^th through September 6^th).

Debt Negotiations Continue:  Yesterday, President Obama used a White House news conference to urge lawmakers to “do their job” and make the “tough choices” needed to get the nation’s fiscal house in order as the August 2^nd deadline for raising the debt ceiling approaches.  He said those choices might include a Medicare overhaul, cuts in defense spending, and increasing taxes.  Calling the early August date a “hard deadline,” Obama said lawmakers should scrap any recesses until they hammer out a budget deal.  The House has been in recess this week and has another recess schedule for the week of July 18^th.  The Senate is scheduled to be in recess next week.

Appropriations Update:  The Senate Appropriations Committee will hold its first markup of FY12 spending legislation today, starting with the least controversial of the 12 annual bills — the measure funding veterans’ programs and military construction.   The House passed its FY12 Military Construction-VA bill on June 14^th.  Additionally, the House has already approved FY12 bills for Agriculture and Homeland Security, and the Defense and Financial Services bills have been approved by committee and are ready for floor action. 

Pell Grant Program Vulnerable:  Amid a political climate in congress where virtually every corner of federal spending is in jeopardy, the Administration says it wants to protect Pell grants for low-income college students.   But the quasi-entitlement program faces a huge funding shortfall for FY12 and has become a tempting target for Republican budget hawks, who say that it is a prime example of overspending and “promises we can’t keep.”  Those close to talks on a debt reduction deal are saying little about which programs are likely to be on the chopping block, but education experts say the large increases required to sustain the Pell grant program make it particularly vulnerable.

The Pell grant program is one of the federal government’s largest education initiatives, and has been one of President’s top priorities.  The program faces a shortfall each year because it is partially funded through discretionary spending, not just mandatory dollars that would sustain it automatically.  With the economic difficulties of the past few years, more people are qualifying for the grant and more people are going back to school to earn degrees, leaving the program strapped for cash.  Program costs have more than doubled since 2008, from $16 billion to an estimated $35 billion in FY12.  In order to maintain the current $5,550 maximum award, lawmakers must make up for an estimated $11 billion shortfall.  Lawmakers in both parties are looking at proposals to restructure the Pell grant program to reduce costs, but those decisions are unlikely to be made until after the White House and congressional leaders negotiate a deficit reduction plan.

Bipartisan Support for Tax Reform:  Leaders of the Senate Finance Committee sounded a rare bipartisan note Wednesday on a tax issue.  They called for scrapping the current code and replacing it with a far simpler one that would help increase federal revenue.  Lawmakers said making it easier for individuals and businesses to pay taxes would go a long way toward closing the $300 billion gap between taxes actually owed and those that are paid.  The remarks came at the latest in a series of Senate Finance hearings on rewriting the tax code.

Congressional Pay Freeze:  Lawmakers in both the House and Senate have introduced nearly 20 pieces of legislation this year to try and slash or freeze their own paychecks for 2013.  Attacks on their six-figure salaries have become increasingly popular in recent years, as members face the wrath of constituents dissatisfied with the state of the economy and often plagued by personal financial challenges themselves.  With heated discussions under way on whether to raise the debt ceiling by August 2^nd, several lawmakers have introduced bills that would nix any congressional increase in pay for every year that the government runs a deficit.  The last pay increase members received was in 2009, when they got a 2.8 percent raise.  The House and Senate have frozen their salaries for 2011 and 2012 at $174,000.  But pay raises for 2013 are still in order.  Members of Congress, under current law, automatically receive a cost-of-living pay adjustment each year unless they vote against it, as they’ve done each year since 2010. 

Immigration Reform Legislation Begins to Emerge:  On June 22 Senator Menendez (D-NJ) reintroduced the Comprehensive Immigration Reform Act of 2011 (S 1258).  As in past years, his legislation focuses primarily on issues such as border security and guest worker visas, but it also includes language that would exempt individuals with an “advanced degree” in a science, math, or engineering field from visa caps.  Meanwhile, on June 14 Congresswoman Lofgren (D-CA) introduced the Immigration Driving Entrepreneurship in America (IDEA) Act of 2011 (HR 2161), which would ease green-card applications for non-immigrants with advanced STEM degrees, but would also protect fair wages.  The primary legislative driver, however, for comprehensive immigration reform in the Congress is the Development, Relief, and Education for Alien Minors Act of 2011, also known as the DREAM Act of 2011, which does not address foreign nationals studying in a STEM field.  The DREAM Act has been reintroduced in both the House (HR 1842) and the Senate (S 952).

DOE Offers $120 Million to Support Innovative Manufacturing Processes:  As part the Advanced Manufacturing Partnership launched June 24^th by President Obama, the Department of Energy is offering an investment of up to $120 million over three years to develop transformational manufacturing technologies and innovative materials.  The Advanced Manufacturing Partnership is a national effort bringing together industry, universities, and the federal government to invest in emerging technologies that will create high-quality manufacturing jobs and enhance US competitiveness.  For more information, see the funding opportunity announcement and the DOE press release.

Navy Increases Support for STEM Education:  Secretary of the Navy Ray Mabus announced the Navy’s commitment to improve science, technology, engineering, and math (STEM) education.  The Navy will increase funding for STEM education initiatives from $54 million in 2010 to over $100 million by 2015. The Navy views this as an investment in its future workforce.

The House Appropriations Committee today released the FY12 Energy and Water and Related Agencies Appropriations bill, which will be considered in the Energy and Water Subcommittee tomorrow.
 
The legislation provides the annual funding for the various agencies and programs under the Department of Energy, including the Office of Science, Energy Efficiency and Renewable Energy, National Nuclear Security Administration, as well as the Army Corps of Engineers, the Bureau of Reclamation, the Nuclear Regulatory Commission, and various regional water and power authorities. The bill released today totals $30.6 billion – a cut of $5.9 billion below the President’s FY12 request and $1 billion below FY11 enacted levels – which brings the total cost of the bill to nearly the FY06 funding level.

Energy Efficiency and Renewable Energy (EERE): The bill provides $1.3 billion total, $491 million below the FY11 enacted level and $1.9 billion below the President’s request. Of note:

• Solar Energy: The bill provides $166 million total, $97 million below the FY11 enacted level and $291 million below the President’s request.
• Fuel Efficient Vehicle Technologies: The bill provides $254 million total, $46 million below the FY11 enacted level and -$334 million below the President’s request. These funds are used to improve fuel efficiency with better engines, better batteries and engines that burn clean, domestic fuel. The bill also reduces Vehicle Technology Deployment by more than $200 million, a program which expands electric transportation initiatives.
• Building Technologies: The bill provides $150 million total, $61 million below the FY11 enacted level and $321 million below the President’s request. These funds are used to research energy-efficient technologies in buildings which account for roughly 40% of all US energy use. The bill also proves no funds for the Race to the Green competitive grant program which incentives streamlined energy efficiency regulations, codes and performance standards through a competitive grant process.
• Biomass and Bio-Refinery Research and Development: The bill provides $150 million total, $33 million below the FY11 enacted level and $191 billion below the President’s request.
• Weatherization Assistance: The bill provides $33 million total, $141 million below the FY11 enacted level and $287 million below the President’s request.

View the FY12 Energy and Water Appropriations Subcommittee Summary Table here.

Last month, Congressman Dave Reichert visited the University of Washington to learn more about our efforts to construct a tidal energy test facility in Puget Sound.   He received a great briefing from Brian Polagye and Jim Thomson, and then toured the R/V Robertson.  While on campus, we put together a short video of the Congressman’s visit, which you can watch here.

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