Joe Knollenberg

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, pursuant to clause 1 of rule XXII and by direction of the Committee on Appropriations, I move to take from the Speaker's table the bill (H.R. 3058) making appropriations for the Departments of Transportation, Treasury, and Housing and Urban Development, the Judiciary, District of Columbia, and independent agencies for the fiscal year ending September 30, 2006, and for other purposes, with a Senate amendment thereto, disagree to the Senate amendment, and agree to the conference asked by the Senate.

Mr. KNOLLENBERG. Mr. Speaker, I yield myself such time as I might consume. I thank my colleague from Massachusetts for his commitment to the programs in this bill and for his partnership in what has been a most interesting journey to bring this bill to a conference. This bill is a huge compilation of government operations, public service programs and critical national infrastructure. Like other appropriations bills, our allocation and commitment to fiscal responsibility makes funding these programs a challenge. Our task was to fund well-run, effective programs to the greatest extent that we could and encourage reform in others. Two of the motions, Amtrak and HOPE VI, fall into the latter category. Starting first with Amtrak, this is a railroad in desperate need of reform. This year alone Amtrak will carry over $120 million in funds that were provided to them by the Congress in fiscal year 2005 but not used. The DOT Inspector General, an official respected on both sides of the aisle, has informed us that $1.275 billion is sufficient for Amtrak to continue operating its existing route structure without reductions in frequency, and to dedicate sufficient resources to continue the effort to bring Amtrak-owned infrastructure to a state of good repair. Also included in this figure is $278 million to meet Amtrak's debt service obligations on its nearly $4 billion in outstanding loans. HOPE VI is a program that is just that for many people, hope that the grant to create new public housing will actually be spent in their neighborhoods. Currently, over $2.8 billion in HOPE VI grants has not been spent. Only 37 of the 224 communities have actually seen the finished product. For those 37 communities, HOPE VI is a terrific program, and I was a supporter of HOPE VI for that reason, because there are some good examples. However, HOPE VI is not working for the other 187. Here is another program in desperate need of reform, and I am hopeful for that in the coming year, with whatever level of funding is provided for the program. The authorizing committees of jurisdiction will look for ways to make this program more effective. Section 722 of the Senate bill deals with micropurchases. I believe the administration has already acted on this issue, and we are supportive of the Senate's provisions. In the end, we recognize the challenges of reform and have not abandoned our commitment to fund good programs. We will do our best under this allocation that we have to meet to fund the priority programs, including HOPE VI and Amtrak. Again, I thank the gentleman from Massachusetts and all the members of the subcommittee for their hard work this year. With that, I would merely announce that I would accept the motion to instruct.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the motion to instruct on H.R. 3058.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, today I, along with 17 other bipartisan, original cosponsors, am introducing the American Manufacturing Competitiveness Act (AMCA). This bill will help our manufacturing companies and their workers in a time of need. Right now, America's manufacturers are facing unprecedented international competition so it's critical that we pursue policies that make American manufacturing industries the strongest in the world. In order to be competitive on the global market, our manufacturing base has to have access to timely supplies of competitively priced raw materials. Our manufacturers have to sell their goods at globally competitive prices, so they need to get their inputs at globally competitive prices too. The problem is excessively high raw material prices are hurting our manufacturers. For example, U.S. steel prices are now the highest in the world. As just one example, the price for hot-rolled coil is over $100/ton higher than anywhere else in the world. When the costs of inputs for our manufacturing base are higher than the rest of the world, it undermines their ability to compete. Government policies are part of the problem. For example, there are now over 150 different import restrictions covering over 20 steel products from over 30 nations. Some of these have been in effect since the 1980's, and cover steel products that are more expensive here than anywhere in the world. These restrictions can cause large distortions in the U.S. market for raw materials, and can inflict harm on the manufacturers and workers who need those materials to make their products. They hobble our manufacturers in tight markets, and choke off our larger manufacturing base. However, the astonishing reality is this harm to our manufacturing base is being ignored when decisions about import restrictions are made. The International Trade Commission (ITC) and Department of Commerce (DOC) don't even allow the industrial users any meaningful participation in the process. Think about this. American companies are directly impacted by these decisions, but they are not even considered in the process. In fact, foreign producers have more rights in this process than our own American industrial users. This is especially disturbing since steel consuming jobs outnumber steel producing jobs by over 60 to 1. This is extremely unfair and unwise. I testified at the ITC twice earlier this year during hearings on 5- year sunset reviews for duties on hot-rolled steel and stainless steel sheet and strip. Duties on these types of steel had already been in place for 5 years, and now the ITC was required to make a decision about whether they should continue. Companies who need these types of steel testified at these hearings too and provided information about the trouble they have getting the quantity and quality of the steel they need at competitive prices. When a manufacturing company can't get the raw materials it needs, that causes damage to the company particularly when they have to deliver their products just-in-time. Because of these duties, the industrial users are suffering damage. I also introduced House Resolution 84, which urges the ITC to consider the effects of duties on industrial users during these sunset reviews. This resolution has 48 bipartisan cosponsors. All we were asking was that the ITC consider the effects of these duties on the consuming companies. When the report explaining the ITC's decision to keep the duties in place came out, I was shocked that there was no evidence at all that the ITC considered the effects of the duties on the industrial users. Nothing. These are American companies with American workers, but there was no evidence the ITC listened at all. Furthermore, during one of the hearings a representative for the steel industry stated ``the Commission is precluded from considering the impact of imports of the subject merchandise on domestic steel consumers in determining whether the antidumping order should be revoked.'' This person was saying in effect that the ITC is not even allowed to consider the effects of their decisions on our manufacturing base. This is just wrong and it must be addressed to prevent unnecessary damage to our manufacturing base. Antidumping and countervailing duty laws are necessary and they're in the interest of the United States, when applied in an objective and fair manner, to prevent unfair pricing and subsidized competition. But it's not fair and it's not acceptable when American companies being hurt by duties on imports can't even be considered in the process. Mr. Speaker, basic fairness and common sense require us to change the law. My bill will address this problem by giving industrial users legal standing to participate in the antidumping and countervailing duty processes. It will require the ITC and the DOC to consider the information provided by the businesses that use these products. This is only fair. Furthermore, the process for imposing duties will remain the same, with the addition of a simple test that looks at the downstream harm. Under this bill, when making decisions on import restrictions, an economic impact test would be conducted by the ITC to determine the net effect on the American manufacturers affected by those decisions. In order for a restriction to be imposed, the test must show it would provide greater benefit than harm to U.S. interested parties in that case. If not, it can't be imposed. This is only fair, and makes sure our policies are economically sound. I urge my colleagues to join me in supporting this important bill to help our American manufacturing base be as competitive as it can be.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, I rise today to recognize our troops and to support our continuing efforts in Iraq. It is important that we recognize and honor our troops who are serving in the Middle East. While progress is being made there are still obstacles in the path toward a free and independent Iraqi state. The effort in Iraq is moving along steadily, and our forces are working in conjunction with Iraqi forces toward success in many different areas. American troops are fighting to secure and rebuild cities and to extinguish the insurgency. Our men and women in uniform are doing an exemplary job, and it is essential for us to salute their efforts as they work to ensure stability in a historically unstable region. Politically, Iraqis have embraced the charter constitution, and the Independent Electoral Commission of Iraq reports that 78 percent of voters were in support of its passage. This was a major step in their pursuit of a democratic government and citizens' rights through political reconstruction. Additionally, American forces are reconstructing the services and infrastructure to move Iraq forward. Electricity, water, education, and sanitation services are being established. Water treatment plants are being built throughout the country, bringing clean water to tens of thousands of homes. Power plants are being restored and refurbished, improvements on transportation infrastructure are being made, and the completion of school renovation and construction projects will facilitate education for Iraqi children. The war on terror is progressing as well. Our troops are successfully breaking up Al Qaeda by detaining known terrorists and seizing weapons caches. Between the 15th and 18th of October, a known Al Qaeda military leader was killed during Coalition raids and forces from the 172nd Infantry Brigade uncovered 10 weapons caches and detained 16 suspected terrorists in northern Iraq. Continued efforts like these are what it will take to eradicate the threat of terror. Our soldiers are overseas creating these successes and they deserve our continued support. These brave men and women are risking their lives in order to protect our Nation, our ideals, and our safety. They are fighting for each and everyone of us, fighting for all that we hold dear not just in America, but also worldwide. I want to take this opportunity to thank our Armed Forces for all that they have done and to offer my unrelenting support for their hard work and sacrifice as they continue to work toward the establishment of a free Iraq.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, I rise today to mourn the passing of Rosa Parks. Rosa Parks took a stand by refusing to leave her seat for a white man on a bus in Montgomery, Alabama. She forever changed the course of our nation with one simple act of courage and stubbornness. By keeping her seat in the front of the bus she started a movement which would ensure that African-Americans and other minorities would never again be required to take a back seat to bigotry, prejudice, and racism. The significance of Rosa Parks' life was not limited to the civil rights movement, as can be evidenced by her reputation with people of all ages. She is just as important to children today as she was to the millions she inspired with her singular act of defiance in 1955. She led the life of a true heroine, refusing to bow down to intolerance, inequality, and narrowmindedness. She was the voice of courage, the personification of bravery, and the catalyst of change. She sat down when the world told her to get up, inspiring millions to demand equality. She leaves a legacy built upon strength, pride, and hope. She was the beginning of a movement that sought tolerance and equality not only between blacks and whites, but also between people of all backgrounds. Rosa Parks remains a role model for us all, having demonstrated the importance of perseverance and principle. I was and always will be proud to say that she was, for at least a portion of her life, a Michigander. She will be missed, but her memory will never fade.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Madam Chairman, I rise in strong support of H.R. 250, the Manufacturing Technology Competitiveness Act of 2005. First allow me to congratulate my colleague from Michigan for his hard work in bringing this bill to the floor of the House today. He has been an important champion for manufacturing and this bill is a great example. American businesses and workers are the most productive in the world. However, because of massive global competition and increasing non- direct costs, our manufacturers are under severe pressure. In many cases these businesses are being forced to deliver their products at constant or even lower prices in order to get their products sold. At the same time, the costs of inputs they cannot directly control like health care, litigation, raw materials, energy, and many others are increasing. These trends are squeezing the industry incredibly hard. Manufacturers throughout the country are reacting to this environment by taking the steps they can to become even more efficient and competitive. And they're continually making progress. While American manufacturers are taking the steps they need to take, it's important for the government to look at appropriate ways we can help. Technology is an area where the federal government has an enormous impact. This bill includes some important steps forward in enhancing American manufacturing technology. H.R. 250 provides grants, encourages scholarship and strengthens the Manufacturing Extension Partnership. MEP is an important Federal program that has had a documented positive impact on our manufacturing sector, and which is particularly vital to our small and medium-sized manufacturers. As many Members of Congress know, MEP is a Federal-State-private network of over 60 centers with 400 locations in all 50 States. These not-for-profit centers work with small and medium-sized manufacturers to help them adopt and use the latest and most efficient technologies, processes, and business practices. The results of MEP speak for themselves. In fiscal year 2003 alone, MEP served more than 18,000 manufacturers nationwide. Those manufacturers reported an additional $2.6 billion in sales, $686 million more in cost savings, $912 million of additional investment in plant modernization, and more than 50,000 more jobs just as a result of their projects with MEP Centers that year. Additionally, an estimate of the federal return on our investment in MEP Centers is $4 in Federal tax revenue for every $1 invested in the program. Madam Chairman, for all these reasons, it is important for Congress to pass this bill. I urge my colleagues to join me in supporting American manufacturing by supporting this bill.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, I rise to stress the urgency of strengthening Social Security for future generations. Over the next twenty years, the number of seniors will grow by 70 percent because of the retiring baby boomer generation. A half-century ago, 16 workers paid into Social Security for every retiree. Today only three workers support every retiree and in the next few decades, that number will drop to two. By 2042, the system will become bankrupt and it will only be able to pay 70 percent of promised benefits. Younger workers can earn additional benefits by giving them the option to invest a small portion of their Social Security taxes in bonds and stocks. Personal accounts will allow them to build a financial nest-egg for their retirement; they can pass on to their loved ones. Mr. Speaker, personal accounts will give our children and grandchildren the peace of mind that they will be financially secured in the future.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, with the world watching, Israel announced on April 18, 2004 its disengagement plan to withdraw Israeli settlers from the Gaza Strip and four West Bank settlements. Intended to improve security for Israeli citizens, Israel's disengagement plan also creates a possibility for greater Middle East peace. Beginning in 1948, hostile nations have denied Israel's right to exist. Today, violence from terrorist organizations not only threatens stability in the region but the sovereignty of the Israeli people. With the future uncertain, we must recognize one thing: freedom and security can be the future for both the Palestinian and Israeli people. The impending disengagement creates the opportunity for progress towards this goal. We must recognize the difficulties Israel will face and support our dependable ally. We must also support efforts by the Palestinian leadership to fight terror and create more peaceful, sound Palestinian regions. And, as Americans who have faced threats to our own existence, we must never forget what freedom is.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, for too long, the International Trade Commission and Department of Commerce have ignored the impact that anti-dumping and countervailing duties on imported steel have had on steel consumers in the United States. Soon, the ITC will release a report on stainless steel duties and it's my hope there will be evidence that steel consumers are being considered. Steel duties favor steel producers. Yet, the ITC has not even considered the impact such duties have on steel consuming industries. With nearly thirteen million American employees of steel consuming companies, but only two-hundred thousand employees of steel producing companies, this is simply wrong. In the past, the ITC has not recognized the fundamental fairness of giving steel consumers the consideration they deserve. Forty-five Members of Congress have joined in cosponsoring House Resolution 84, urging the ITC and Commerce Department to consider the effects of such duties upon steel consumers. Hopefully, the ITC will finally listen.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, the Cooperative Development Program, CDP, of USAID serves an important role in America's international development assistance. For a modest annual investment, credit unions and cooperatives can have a greater opportunity to flourish through the work of the World Council of Credit Unions and other non-governmental cooperative development organizations. In a world where three billion people live on less than $2 a day, access to safe and sound financial services is essential to helping people build better lives for themselves. The World Council of Credit Unions, WOCCU, works to strengthen credit unions implementing technical assistance programs to improve credit union performance so that these non-for-profit cooperative financial institutions can offer an array of client-responsive services, extend their geographic coverage, and harness technology. Created by the vision of the U.S. credit union movement, WOCCU has been implementing their technical assistance programs for over 30 years. Prior to WOCCU's formation in 1970, the Credit Union National Association, CUNA, had an international division called CUNA Global Projects dedicated to overseas credit union activities. Today, CUNA and their state league system, representing 86 million credit union members in the U.S., work with WOCCU to promote credit union growth in developing countries. Through the current funding cycle of USAID's CDP, WOCCU will spend the next 4 years working with credit unions around the world and focused in Afghanistan, Kenya, the Philippines, Ecuador and Nicaragua to build networks--expanding low-cost transaction services for members, including remittances; creating enabling environments; training credit union managers and board members; and extending credit union operations to difficult operating environments, including HIV/AIDS-affected communities, conflict-prone zones and poverty-entrenched rural areas. Credit unions and cooperatives provide hope for economic prosperity through grassroots businesses that provide jobs, income, basic education and democratic experience. I will continue to support the USAID Cooperative Development Program to sustain overseas cooperative development in developing countries and emerging democracies.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I think everybody knows. They have heard quite a bit this evening. Trade adds growth, generates more jobs, and raises our standard of living. Passing CAFTA-DR will bring more of these benefits to our economy. Let us be very clear: it will. This is a big deal for America. We already have a trade agreement with the CAFTA-DR countries. It is just not good enough. It is only one way. Currently, 80 percent of their exports come into the U.S. duty free. In fact, about 5 years ago, 309 Members of this House voted in May of 2000 to unilaterally cut and eliminate our tariffs on their goods to help their economies. And I have the list, 183 Republicans and 126 Democrats. Tonight, those same Members can now vote in favor of this trade agreement which will eliminate their tariffs on our goods and help our economy. And then when this agreement goes into effect, 80 percent of our manufactured exports and 50 percent of our agricultural exports will be immediately duty free. The rest will be phased out over 10 years. I do not think we can ask for a better deal, and it is about time we evened the score. The facts are clear. CAFTA-DR is a great deal for America. By the way, I have those results, if anybody is interested, of the vote 5 years ago.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Speaker, United States foreign policy toward the South Caucasus nations is one of fostering regional stability and enhanced cooperation. I rise today to bring attention to the great injustice in relations in this region. I speak today to stress my opposition and to move forward with legislation contesting the proposed railroad connecting Tbilisi, Georgia and Kars, Turkey. The proposed railroad would systematically bypass Armenia, and push them further into isolation. As we all know, Turkey and Armenia have their differences. Although it is counterproductive to list those differences, instead I want to highlight the fact that it goes against United States policy to be in a position that further advances the turmoil in this region, The proposed legislation would bar U.S. support and funding for a rail link connecting Georgia and Turkey, but which directly averts Armenia. Eight years ago, the former Turkish president and the former Georgian president meant to discuss the railroad that would ``open a third frontier crossing between the two countries,'' providing further commerce and economic opportunity for the South Caucasus region. Both countries would benefit immensely from this railroad. While I will always support commerce-based proposals that spawn economic development around the world, this proposal initiates commerce at the cost of another country's economic development. This is unacceptable. This railroad would cost between $400-$800 million to construct, while a perfectly workable and capable rail link already exists. It is evident to all that this new rail system is being proposed for the specific reason of diverting commerce around Armenia. The construction of the proposed railroad would be equivalent to the people of Ohio building a new bridge to Canada just to avoid traveling through Michigan. The United States government would never condone this action, and we should not be in the practice of condoning the actions set forth by the Turkish government. The existing rail would be available for use within weeks of an agreement between Armenia, Turkey, and Georgia. Furthermore, the Armenian people are willing to forego using the rail until normal relations with Turkey are established. Mr. Speaker, although normal relations may still take some time, there is no reason to further shut Armenia out of the equation. Moreover, the building of this railroad also highlights the ongoing struggle between Armenia and Azerbaijan. Known by all, Azerbaijan's main goal is to strangle Armenia into submission of Nagorno-Karabakh. This railroad does just that. The United States and other countries around the world, including Turkey, need to allow these two countries to agree upon a solution regarding Nagorno-Karabakh. It is necessary that third parties remain neutral. The proposed railroad not only stunts the diplomatic progress between Armenia, Turkey and Azerbaijan, it unnecessarily blocks Armenia's economic and political progress. I encourage my colleagues to look at the facts of this situation. The existing rail link would be available essentially as soon as possible and it would take a minimal amount of funding in order to get it usable again. Whereas, a new rail link would take months if not years to build, and would cost an estimated $400-$800 million. There should be no question as to which plan the United States supports.

Mr. KNOLLENBERG

Mr. KNOLLENBERG. Mr. Chairman, I ask unanimous consent that the remainder of the bill through page 210, line 18, be considered as read, printed in the Record and open to amendment at any point.

Mr. KNOLLENBERG. Mr. Chairman, I claim the time in opposition, but we accept the amendment. Mr. Chairman, I reserve the balance of my time.

Mr. KNOLLENBERG. Mr. Chairman, if I may inquire, does the gentleman have any time remaining?

Mr. KNOLLENBERG. Mr. Chairman, I yield myself such time as I may consume to note that there are no Members here that are in opposition, and I have no position on this matter except to accept the amendment. Mr. Chairman, I yield back the balance of my time.

Mr. KNOLLENBERG. Mr. Chairman, I reserve a point of order on the gentleman's amendment.

Mr. KNOLLENBERG. Mr. Chairman, I yield myself such time as I may consume. Let me respond to the Sanders amendment, which I am opposed to. It is a transparent attempt to void a contract that would deliver tremendous benefits to the general aviation community and save the FAA $2.2 billion over the next 10 years. It also could result in up to $350 million in additional costs to the FAA in the form of termination penalties. There is no erosion of safety associated with contracting out flight service stations. Simply put, flight service stations do not control air traffic. Flight service stations receive and file flight planes and provide pilot weather briefings, en route communications, and search and rescue services to general aviation pilots. The contract will enhance all of these services to the general aviation community. It has strong support from private pilots because they know that better services will result in a safer system. This contract will have little or no impact on commercial or military pilots who get these services from different sources. It also protects existing flight service station employees. Lockheed Martin will offer jobs to all incumbent employees. Salaries will be matched, including locality pay. Lockheed Martin will provide a sign-on bonus, as well as a retention bonus for many positions, as well as up to $50,000 for relocation allowances. Additionally, Lockheed Martin will offer a 401(k) savings plan, income protection plan and performance bonuses. The contract was fairly bid, and the flight service station employees competed in the offering. This contract has been years in the making. Congress should not step in after the fact to stop this contract and deny better services to more than 600,000 private pilots. Let me turn to some of the pilot private pilots on this. This is a quote: ``After spending 90 minutes getting an advance look at a 21st century flight service station and asking hard questions, all I can say is, Wow! On the basis of what the contractor will deliver under the contract, pilots are going to be much better served and much safer.'' Another: ``For the first time in history, pilots are going to get a contractual guarantee that a live briefer will answer their phone calls within 20 seconds and acknowledge their radio calls within 5 seconds. Flight plans will be filed within 3 minutes. It's in the contract.'' Then: ``And as any pilot who has been stuck on hold for 20 minutes trying to get a weather briefing can tell you, the system is overloaded and frequently non-responsive.'' These are all quotes from people who actually are involved in this process. So I strongly urge the defeat of this amendment. Mr. Chairman, I reserve the balance of my time.

Mr. KNOLLENBERG. I have no speakers left, but I reserve the right to close, so I want to continue to reserve my time.

Mr. KNOLLENBERG. Mr. Chairman, I yield myself the balance of my time. Let me close with just a few points, Mr. Chairman. To summarize: Contracting out Flight Service Stations will result in no erosion in safety. It is a safer system and 600,000 general aviation pilots will get better service. The contract will save taxpayers money. Not a bad idea. Employees will be protected. This, in my judgment, is a no- brainer. Mr. Chairman, I oppose the gentleman's amendment very strongly and urge all Members to oppose this amendment.

Mr. KNOLLENBERG. Mr. Chairman, I yield back the balance of my time.

Mr. KNOLLENBERG. Mr. Chairman, will the gentleman yield?

Mr. KNOLLENBERG. Mr. Chairman, I would be happy to accept the gentleman's amendment.

Mr. KNOLLENBERG. We know what it is; but if the gentleman wants to take a moment or two, yes.