SCA HOSTS ANNUAL MEETING IN WASHINGTON, D.C.
This week, SCA hosted its Annual General Membership Meeting in Washington, D.C. April 23-25 at the Ritz Carlton Pentagon City. Highlights from the meeting include Congressional Visits with over 40 Members of Congress and their staffs. Additionally, SCA was briefed by five distinguished speakers on Wednesday morning, including Assistant Secretary to the Navy for Research, Development and Acquisition, the Honorable Sean J. Stackely.
To read more about the meeting, click HERE____
BUDGET UPDATE
HASC Seapower Markup
On Thursday the House Armed Services Committee Seapower and Projection Forces Subcommittee marked up their respective legislative language for the FY13 National Defense Authorization Act. Included are provisions that:
- Authorize a multi-year procurement for up to 10 Virginia-class submarines;
- Authorize a multi-year procurement for up to 10 DDG-51 Arleigh Burke class destroyers;
- Extend the period for incremental funding for CVN-79 and CVN-80 aircraft carriers from five years to six years;
- Require the Secretary of the Navy to maintain a minimum of 12 ballistic missile submarines in the fleet.
The Seapower mark can be read here.____
Congressional Budget Allocations
Both the House and Senate have now issued their 302(b) appropriations allocations for FY13 and will soon begin markup of the 12 annual appropriations bills. The Senate’s allocations are based on the caps set in the 2011 Budget Control Act (BCA). The House reduces the BCA FY13 total by a net of $19B, increasing spending on defense by $8B and decreasing spending on domestic programs by $27B. The large differences in some of the allocations will require significant compromises during conference on the individual bills.
FY13 Senate v. House 302(b) Allocations
|
Subcommittee
|
Senate
|
House
|
∆
|
|
Agriculture
|
$20.8 billion
|
$19.4 billion
|
$1.4 billion
|
|
Commerce- Justice-Science
|
$51.9 billion
|
$51.1 billion
|
$0.8 billion
|
|
Defense
|
$511.2 billion
|
$519.2 billion
|
$8.0 billion
|
|
Energy- Water
|
$33.4 billion
|
$32.1 billion
|
$1.3 billion
|
|
Homeland Security
|
$39.5 billion
|
$39.1 billion
|
$0.4 billion
|
|
Interior
|
$29.7 billion
|
$28.0 billion
|
$1.7 billion
|
|
Labor-HHS-Education
|
$157.7 billion
|
$150.0 billion
|
$7.7 billion
|
|
Legislative Branch
|
$4.4 billion
|
$4.3 billion
|
$0.1 billion
|
|
Military Construction-VA-
|
$72.2 billion
|
$71.7 billion
|
$0.5 billion
|
|
State-Foreign Operations
|
$49.8 billion
|
$40.1 billion
|
$9.7 billion
|
|
Transportation- HUD
|
$53.4 billion
|
$51.6 billion
|
$1.8 billion
|
|
TOTAL
|
$1.047 trillion
|
$1.028 trillion
|
$19.0 billion
|
____
NEWS FROM THE HILL
Hearing on Maritime Regulations
On Thursday, the House Transportation & Infrastructure Committee, Subcommittee on Coast Guard and Maritime, held a hearing on regulation of the maritime industry (click HERE for more information).
In his opening statement, Congressman Rick Larsen emphasized that if a decision to draw down the Strategic Petroleum Reserve (SPR) is made, it must be done in full compliance with the Jones Act. Additionally, he announced his plans to hold an oversight hearing to ensure that any future SPR drawdown is performed in full compliance with the law and Jones Act to avoid any waivers.
Congressman Jeff Landry also noted generally the onerous regulatory burdens faced by shipyards and how that impacts their competiveness. He called broadly on Agencies to review needlessly burdensome and outdated rules, and to foster an environment of deregulation, instead of regulation.
To view Congressman Larsen and Congressman Rahall’s request for an oversight hearing on the SPR and Jones Act, please click HERE.
____
American Maritime Partnership (AMP) Tells Congress That American Fleet Can Meet Additional Demand If Sunoco Refinery Closes
On Thursday, AMP, of which SCA is a Board Member, submitted testimony to the Joint Economic Committee criticizing and correcting an Energy Information Administration (EIA) report that said American tank vessels may be “in short supply” if a Northeast refinery closes later this year.
That report counted only American tankers and not tank barges, thereby missing about 50 percent of American tank vessel capacity, a “substantial error.” Since the issuance of the original report, EIA has conceded that it missed counting about 270 tank vessels, including large articulated tug barges, but has refused to change its conclusions.
To view the AMP Press Release and full testimony, please click HERE.
____
Letter Opposing Jones Act Waivers
This week, AMP sent a letter to the Senate Commerce Committee requesting that Congress not legislatively grant coastwise privileges for the vessels TEXAS STAR CASINO, MACY RENEE, and IL MORO DI VENEZIA IV. AMP stated that these vessel-specific waivers of federal law are not justified and/or could have an adverse competitive impact on existing operators in the coastwise trade.
To view the full letter and justifications, please click HERE.
____
JONES ACT NEWS
American Feeder Lines (AFL) Suspends Service
AFL announced this week that it is giving up on its attempts to operate foreign-built ships under special legislation in the U.S. Recall, AFL had proposed legislation that would waive in foreign-built vessels with the promise that their one-for-one replacements would be built in U.S. shipyards. Additional, AFL has ended its existing service between the U.S. and Halifax.
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News from RDML Carnevale…
The mark up of the HASC Readiness Subcommittee is out and can be seen HERE. There are three sections important to ship depot maintenance. The most important is Sec. 323 on report page 10 (PDF page 35) which restores the exclusions for nuclear refueling and procurement of major modifications in the definition of depot-level maintenance. It also excludes nuclear defuelings looking to the future. Sec. 343 on page 25 (PDF page 47) adds additional justification for work in foreign shipyards and adds contract vessels to the reporting requirement. The section being modified can be seen HERE. Finally, Sec. 354 on page 31 (PDF page 50) says that no funds may be used for the decommissioning of cruisers or amphibs except for the PORT ROYAL.
The HASC readiness mark also opposed further base closures by not including the Department of Defense's proposal for two rounds of BRAC in FY13 and FY15.
To view Chairman Forbes’ opening statement, click HERE.
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Announcements
SAVE THE DATE
SCA’s Fall General Membership Meeting will be held October 15-17th, 2012. Mark your Calendars!
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DEFENDING OUR DEFENDERS
Congressman Randy Forbes (R-VA-4) will be hosting events over the next several months designed to highlight the negative effects sequestration would have on the defense industry. The forum will provide an opportunity for those who would be affected by the cuts to voice their stories and opinions.
The next event will be May 14, 2012, in the Hampton Roads Area at the Chesapeake Conference Center at 6:30 pm. To register for the event, click HERE. For more information about the Defending Our Defenders Listening shows, click HERE.
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Upcoming Hearings
House:
Senate:
Both the House and Senate will be out of session next week.