Tuesday, May 19, 2015

Politics in Action: H.R. 1335, H.R. 880, H.R. 2262 & H.R. 2353

 STATEMENT OF ADMINISTRATION POLICY
H.R. 1335 — Strengthening Fishing Communities and
Increasing Flexibility in Fisheries Management Act
(Rep. Young, R-AK, and three cosponsors)

The Administration strongly opposes H.R. 1335, which would amend the Magnuson Stevens Fishery Conservation and Management Act (MSA), because it would impose arbitrary and unnecessary requirements that would harm the environment and the economy.  The MSA currently provides the flexibility needed to effectively manage the Nation's marine commercial, recreational, and subsistence fisheries.  In contrast, H.R. 1335 would undermine the use of science-based actions to end and prevent overfishing.

The current requirements of MSA are working – the percentage of stocks that are subject to overfishing and the percentage that are in an overfished state are at historic lows.  H.R. 1335 would interfere with the tremendous success achieved in rebuilding overfished fisheries by setting rebuilding targets that are not based on sound, credible science, and that unnecessarily extend the time to rebuild fisheries.  In making these changes, H.R. 1335 introduces a series of ambiguous provisions that could improperly extend rebuilding periods, delaying the significant economic and environmental benefits of rebuilt fisheries to both fishermen and the Nation as a whole. 

H.R. 1335 would exempt fishery management actions from the requirements for environmental analysis under the National Environmental Policy Act and replace them with a new set of standards.  This provision is unnecessary, as the regional fishery management councils have integrated environmental analyses into an overall framework that is both timely and effective.   For similar reasons, the provisions regarding the Endangered Species Act, the National Marine Sanctuaries Act, and the Antiquities Act are unnecessary and likely to give rise to confusion.  Rather than reducing burdens on the fishery management councils, these provisions of H.R. 1335 would interfere with a well-established and integrated system and would create confusion, delay, and the potential for litigation.

H.R. 1335 would also severely undermine the authority of the Gulf of Mexico Regional Fishery Management Council by extending State jurisdiction over the recreational red snapper fishery to nine miles in the Gulf of Mexico.  This proposed extension of jurisdiction would create an untenable situation where recreational and commercial fishermen fishing side-by-side would be subject to different regulatory regimes.  Absent an agreement among the States as to how to allocate recreationally-caught red snapper, the bill would encourage interstate conflict and jeopardize the sustainability of this Gulf-wide resource.

The Administration urges the Congress to support the Administration's efforts to fully utilize the flexibility in the current MSA.  The National Oceanic and Atmospheric Administration issued a proposed rule in January updating key guidelines for implementing the MSA, which would ameliorate many of the concerns that H.R. 1335 seeks to address without undermining the fundamental, science-based requirements of the MSA.  H.R. 1335 would introduce uncertainty and delays in rebuilding fisheries, undermine science-based management, weaken the protections provided by other important environmental statutes, and generate sector and interstate conflicts. 

If the President were presented with H.R. 1335, his senior advisors would recommend that he veto the bill.


H.R. 880 - American Research and Competitiveness Act of 2015
(Rep. Brady, R-TX, and 32 cosponsors)
                                                                                                          
The Administration supports enhancing, simplifying, and making permanent the Research and Experimentation Credit ("R&D credit"), and offsetting the cost by closing tax loopholes.  The President’s Budget proposes to do so as part of pro-growth business tax reform that is revenue neutral over the long term.  Making the R&D credit permanent will increase its effectiveness, since it will allow businesses to make investments and create jobs today confident that they will continue to benefit from the credit in the future.  Moreover, four-fifths of the R&D credit is attributable to salaries of U.S. workers performing U.S.-based research—meaning that the credit helps create high-skilled jobs, as well as encouraging new innovations and future productivity.

However, the Administration strongly opposes House passage of H.R. 880, which would permanently extend and expand the R&D credit without offsetting the cost, adding to long-run deficits.  By making the R&D credit permanent without offsets, H.R. 880 would add $180 billion to the deficit over the next 10 years.  H.R. 880 violates the very standard that House and Senate Republicans approved less than a month ago in their concurrent budget resolution, which requires offsetting the cost of any tax extenders that are made permanent with other revenue measures.  If the House passes H.R. 880, it will have approved nearly $600 billion in deficit-increasing tax cuts mainly for corporations and wealthy estates this year – none of which are provided for in the Republicans’ own budget.

As with other similar proposals, Republicans are imposing a double standard by adding to the deficit to continue and expand costly tax breaks, while slashing investments and programs that serve middle-class and working Americans in the name of fiscal rectitude.  If this same approach of making major tax extenders permanent without offsets were followed for the other traditional tax extenders, it would add $500 billion or more to deficits, wiping out most of the deficit reduction achieved through the American Taxpayer Relief Act of 2013.  House Republicans also are making clear their priorities by rushing to make business tax cuts permanent without offsets even as the Republican Budget Resolution calls for raising taxes on about 25 million working families and students by letting important improvements to the Earned Income Tax Credit, Child Tax Credit, and education tax credits expire.

The Administration wants to work with Congress to make progress on measures that strengthen the economy and help middle-class families, including pro-growth business tax reform.  However, H.R. 880 represents the wrong approach.

If the President were presented with H.R. 880, his senior advisors would recommend that he veto the bill
.


H.R. 2262 - Spurring Private Aerospace Competitiveness and Entrepreneurship (SPACE) Act of 2015
(Rep. McCarthy, R-CA, and 12 cosponsors)

The Administration strongly supports the development of a commercial space sector that pushes the boundaries of space exploration while creating jobs and strengthening the American economy.  The American commercial launch industry is the most competitive in the world.  Over the past several years, the industry has rapidly increased its share of the global market for sending satellites and other payloads into space.  The Administration agrees with the goal of H.R. 2262 to bring more stability and certainty to this growing market.  While the Administration does not oppose House passage of the bill, it has serious concerns with certain provisions of the bill.

For example, the Administration believes that the “learning period” restricting Federal Aviation Administration (FAA) regulation of spacecraft should be extended for a shorter period than the ten-year extension through 2025 included in the bill.  Over the next few years, several American companies are expected to bring commercial orbital and sub-orbital vehicles into service.  A safety framework that relies on performance-based regulations which could be satisfied by voluntary industry consensus standards would provide for a flexible approach that enhances the overall safety of the industry.  FAA rulemaking activity prior to 2025 may promote, rather than hinder, the development of the commercial spaceflight industry, depending on the pace at which the market for private spaceflight services grows.

With respect to space resource utilization, the Administration recognizes that steps have been taken to ensure that the bill itself is consistent with the United States' international obligations. While the Administration strongly supports the bill's efforts to facilitate innovative new space activities by U.S. companies, such as the commercial exploration and utilization of space resources to meet national needs, the Administration is concerned about the ability of U.S. companies to move forward with these initiatives absent additional authority to ensure continuing supervision of these initiatives by the U.S. Government as required by the Outer Space Treaty.

The Administration looks forward to working with the Congress to address these and other concerns as the bill moves through the legislative process.


H.R. 2353 - Highway and Transportation Funding Act of 2015
(Rep. Shuster, R-PA, and Rep. Ryan, R-WI)

With surface transportation funding authorization running out at the end of this month and hundreds of thousands of jobs at risk, the Administration does not oppose passage of H.R. 2353, recognizing that a short-term extension of these authorities will be necessary in order for the Congress to complete work on a long-term bill that increases investment to meet the Nation's infrastructure needs.  Unfortunately, H.R. 2353 represents yet one more short-term extension coming on top of the several short-term extensions that preceded it. This continuing pattern of uncertainty has already caused several States to cancel or defer projects during the height of summer construction season and has undermined the ability of States and localities to keep Americans at work building and repairing the Nation's roads, bridges, and transit systems.

The President and Congressional Democrats have been very clear that increasing investment in the Nation's infrastructure is a top priority.  That is why the President laid out a vision for a 21st century surface transportation infrastructure, the GROW AMERICA Act, which would provide robust funding for all modes of surface transportation.  The GROW AMERICA Act would also streamline project approval processes and implement innovative transportation policies that will make better use of taxpayer dollars while supporting millions of jobs, improving safety, and positioning the Nation's economy for lasting growth.  That proposal is fully paid for through existing revenues and by reforming the business tax system to help create jobs and spur investment while eliminating loopholes that reward companies for moving profits overseas.

The Administration is focused every day on what can be done to expand opportunity for every American.  In today's economy, that means building a first-class transportation system that attracts first-class jobs and takes American businesses' goods all across the world.  The Nation needs a multi-year authorization bill that makes significant and long-term investments in infrastructure.  It is time for the Congress to end the era of short-term patches and chronic underinvestment.  The Administration will not support continued failure in making the investments the Nation needs. The Administration expects that the Congress will use this two-month extension to make meaningful and demonstrable progress towards a significant bill in 2015. The Administration looks forward to working with the Congress towards this end.

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