DEFENSE BILL AUTHORIZES FOUR LCSs, MOBILE WOULD BENEFIT

The House on Thursday approved the National Defense Authorization Act that includes funding for four Littoral Combat Ships. Two of the ships are being built in Mobile by Austal USA, keeping 4,000 people on the job. The authorization includes full funding for two LCSs and funding for another two ships through Advance Procurement, according to U.S. Rep. Bradley Byrne, R-Fairhope.

Byrne is a member of the House Armed Services Committee and has worked to include language authorizing construction of four ships.

"Today's vote is a big step forward on a long journey and a great achievement for my constituents in Southwest Alabama," Byrne said in a statement. "Our coalition in support of this ship was able to make a forceful and well-reasoned case on this ship's merits and its necessity as we build the future fleet."

Byrne got support from colleagues on the House Armed Services Committee and in the Alabama, Mississippi, Florida, Wisconsin, Michigan, and California delegations. Byrne wants full funding for a version of the LCS being built in his district by Austal USA.

The legislation heads to the Senate for consideration. President Obama wants the number of LCS ships decreased from 52 to 32 including reducing the number of LCSs from four to three.

Lawmakers from both parties have sent a letter to the U.S. Commerce Department asking it to look into the domestic steel industry's allegations of unfair trading practices involving foreign steel.

The Obama administration has not agreed with the industry and has decided to withhold placing additional tariffs on steel imported from South Korea in a preliminary review of the claim made by U.S. Steel producers, AL.com reported.

U.S. Sen. Jeff Sessions, R-Ala., commented about the letter to Commerce Secretary Penny Pritzker that he signed along with 56 others. Sessions said he will "closely monitor this review" expected later this summer in order "to ensure proper valuation of imports."

"Defending against artificially priced foreign imports is critical to having a functioning market that allows U.S. workers to compete," Sessions said. "Alabama has a robust steel industry that should not be unfairly damaged by foreign imports that skirt our trade rules."

Last week, an Economic Policy Institute study said that as many as 500,000 jobs are threatened, including 13,000 in Alabama.

Companies are worried that if the review is unfavorable, Korea, the world's biggest steel producer, will be able to continue dumping its excess tubular steel products destined for the U.S. oil industry, essentially driving down the cost of U.S. steel, AL.com reported.

Foreign steel is targeting the booming energy production industry, particularly shale gas exploration. Sessions said American-made steel used in the U.S. energy sector accounts for close to 10 percent of domestic steel production. "However, since 2008, imports have increased by over 60 percent," Sessions said. "Such a sharp increase is troubling."

U.S. Rep. Robert Aderholt of Alabama said legislation passed by the House appropriations subcommittee he chairs will allow lunchrooms exemptions from federal nutrition rules that some school officials have described as costly and cumbersome, AL.com reported.

The House Committee on Appropriations Agricultural Subcommittee on Tuesday approved a bill to allow for 1-year exemptions to 2012 nutrition standards set by first lady Michelle Obama's childhood obesity initiative. The change would require the Agriculture Department to waive requirements to serve fruits and vegetables, as well as low-sodium and low-fat foods, if schools can show their lunch programs are losing money.

Aderholt, R-Haleyville, said waivers would be temporary and would give schools time to adjust to the changes. He said students aren't eating the food required by the new regulations.

"I am talking to the lunch ladies who do all this work, and it is thrown in the garbage at the end of the day," he said. "I am hearing this from the school administrators as well as the students themselves."

According to the School Nutrition Association, since the nutrition standards took effect more than 1 million fewer students eat school lunches each day. Schools are losing money and kids say they don't like the First Lady's lunch menu.

The U.S. Department of Agriculture opposes the bill. "The House bill would undermine the effort to provide kids with more nutritious food and would be a major step backwards for the health of American children, just at the time childhood obesity rates are finally starting to level off," Agriculture Secretary Tom Vilsack in a written statement.

Electricity prices are probably on their way up across much of the U.S. as coal-fired plants, the dominant source of cheap power, turn off their burners in response to environmental regulations and economic forces, the Associated Press reported.

President Obama's regulations and competition from cleaner sources such as natural gas, wind, and solar could cause dozens of coal-burning plants across 20 states to shut down over the next three years. Many that stay open will need expensive retrofits. Ratepayers will be asked to pay for the upgrades required by the Obama administration's rules.

The Energy Department predicts retail power prices will rise an average 4 percent this year, the biggest increase since 2008. By 2020, prices are expected to climb an additional 13 percent, a forecast that does not include the cost of environmental rules, the AP reported.

Coal produces 40 percent of the nation's electricity. It's relatively cheap and can be stored on power plant grounds for use when needed. Natural gas provides 26 percent of the nation's electricity and has been dropping in price. But it's expensive and not as readily available as coal.

A market analysis firm, Bentek Energy, said power companies will close 68 coal plants across 20 states between now and 2017, raising concern that the system won't have enough cushion to handle extremely hot or cold weather, making blackouts more likely.

Door-to-door mail service may be history

Federal Times (Medici 5/22) "The Postal Service would be able consolidate up to 15 million mailboxes into centralized locations or to curbside service, under legislation passed by a House committee May 21. The House Oversight and Government Affairs Committee passed the Secure Delivery for America Act of 2014, which would save the agency $2 billion a year, according to bill sponsor Rep. Darrell Issa, R-Calif.

"The Postal Service would convert 1.5 million mailboxes a year into more centralized formats from fiscal 2015 to fiscal 2024. The agency may offer waivers in the cases of physical hardship or vouchers to help businesses or individuals pay for curbside mailboxes, according to the legislation. A proposal to allow the Postal Service to end Saturday delivery was dropped from the legislation after encountering resistance.

Manufacturer's Association likes conference report on water

National Association of Manufacturers (Newhouse 5/20) "National Association of Manufacturers (NAM) Senior Vice President of Policy and Government Relations Aric Newhouse issued this statement after passage of the conference report to H.R. 3080, the Water Resources Reform and Development Act (WRRDA) of 2014:

"'Manufacturers applaud conferees for reaching a bipartisan agreement that led to today's successful House vote. This agreement enables continued federal investment in our nation's inland and coastal waterways and begins critical reforms that will enhance delivery of key infrastructure projects'.

"'Infrastructure-whether waterways, roads, rail or airways-is a competitiveness and jobs issue, and our nation needs investments that will keep us globally competitive. Manufacturers will continue to champion improvements to our nation's infrastructure that help us compete and create jobs'."

Business groups urge Senate passage of tax extenders measure

The Hill Needham (5/20) "A powerful trade group has teamed up with 150 business associations in urging the Senate to quickly pass a bill that would renew a slew of expired tax breaks. The National Association of Manufacturers sent a letter signed by more than 150 business groups to the Senate on Tuesday pressing lawmakers to reach an agreement and pass the $85 billion tax extenders measure, which stalled out over a fight about floor debate procedures.

"'These tax provisions benefit a wide range of taxpayers, including associations, businesses, individuals, community development organizations and non-profit organizations and are important to U.S. jobs and the broader economy', the business associations wrote. 'The lack of timely action to extend these provisions injects instability and uncertainty into the economy and weakens confidence in the employment marketplace'."

"On Tuesday, bill author, Senate Finance Committee Chairman Ron Wyden (D-Ore.) said he is continuing to work with Republicans on amendments, but still didn't sound open to a medical device repeal. Last week, Senate Republicans halted the tax package's progress after Senate Majority Leader Harry Reid (D-Nev.) blocked their attempts to offer amendments. Republicans wanted to repeal ObamaCare's medical device tax and nix a wind production tax credit from the measure.

"But business groups argue that (any) delay will weigh on confidence and could hurt growth. 'The extension of the expired provisions should not be delayed until the end of the year since companies are making decisions right now related to taxes that will have an immediate impact on the economy'," the business groups wrote."

ALLEN: Reagan's Ex-Im Bank reforms still paying dividends

Washington Times Allen (5/22) "President Reagan was one of our country's greatest leaders because he valued fair opportunities for the American people over political manipulations that waste taxpayer money. The 'Great Communicator' listened and connected with Americans and then acted in the best interest of our nation. This is why Reagan and presidents from both parties have shown strong support for the Export-Import (Ex-Im) Bank. The Ex-Im Bank's charter has been reauthorized every term since its inception in 1934.

"From the start, he called for major reforms and instilled discipline and budget transparency. Limits were imposed upon the Ex-Im Bank, and subsidies were significantly cut. Those changes have helped to make the Ex-Im Bank self-sustaining today. The Ex-Im Bank not only does not receive or need taxpayer subsidies, but it also turned a $1 billion profit in 2013.

"On the Ex-Im Bank's 50th anniversary in 1984, Reagan signed a letter praising the agency for its accomplishments, declaring the United States the greatest trading nation in the world owing to a combination of talented Americans and a free-enterprise economy.

"Today, providing U.S. companies with the ability to compete on a level playing field is more important than ever before. The bottom line is that the Ex-Im Bank is crucial to U.S. competitiveness, American jobs and our economy. It is a vital tool to ensure companies - especially small businesses - have access to the financing they need to make international sales. In 2013, the Ex-Im Bank helped to facilitate more than $37 billion in U.S. exports, which, in turn, supported 205,000 American jobs."

(George Allen is a former governor and U.S. senator from Virginia. He is the Reagan Ranch Presidential Scholar for the Young America's Foundation.)