1. February 4, 2013

2. General Legislative
Today, February 4, 2013, the House will meet at 2:00 pm for legislative business. Votes will be
postponed until 6:30 pm. Legislation Considered under Suspension of the Rules will include: (1)
H.R. 297 – Children’s Hospital GME Support Reauthorization Act of 2013; (2) H.R. 235 – Veteran
Emergency Medical Technician Support Act of 2013; and (3) H.R. 225 – National Pediatric
Research Network Act of 2013. On Tuesday, February 5 and Wednesday, February 6, the House
will meet for legislative business to consider H.R. 444 – Require a PLAN Act (Subject to a Rule).
Last votes expected no later than noon on Wednesday.
The Senate will meet today at 2:30 to resume consideration of the motion to proceed to S.47, the
Violence Against Women Act.
Debt Limit
LEGISLATIVE ACTIVITY
 Short-Term Debt Ceiling Increase Passed by Senate. Following House passage of H.R. 325,
the “No Budget No Pay Act of 2013,” the Senate, on January 31, also approved the measure. The
bill passed 64-34 with 12 Republicans joining all but three Democrats voting in favor of the bill.
The proposal would suspend the debt ceiling until May 18, 2013. As its name suggests, the
legislation would also withhold pay for Members of Congress if a budget resolution fails to pass
their Chamber, with pay withheld until a budget is passed or the current Congress expires
(January 2015).
Agriculture & Food
LEGISLATIVE ACTIVITY
 Immigration Reform. Last week, the bipartisan “Group of 8” working on immigration issues in the
Senate—Senators Chuck Schumer (D-NY), John McCain (R-AZ), Dick Durbin (D-IL), Lindsey
Graham (R-SC), Bob Menendez (D-NJ), Marco Rubio (R-FL), Michael Bennet (D-CO), and Jeff
Flake (R-AZ)—released their five-page framework for immigration policy, which includes a path to
citizenship for undocumented immigrants and a faster track for agricultural workers. The plan also
proposed a workable, labor program aimed at farmers and dairy producers that focused on
improving the current H-2A visa system for temporary agricultural workers. Senators Rubio and
Dianne Feinstein (D-CA) will continue to lead negotiations between agricultural labor advocates
and businesses to try to work out a deal on agricultural provisions in the Senate proposal.
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3. In the House, no proposal was presented last week, although a small group of bipartisan
Representatives—including Xavier Becerra (D-CA), Luis Gutierrez (D-IL), Zoe Lofgren (D-CA),
Mario Diaz-Balart (R-FL), Sam Johnson (R-TX), and John Carter (R-TX)—may be working on an
immigration plan behind the scenes.
President Barack Obama also announced his immigration principles, which would provide
agricultural workers with provisional legal status along with undocumented immigrants, but would
not afford special treatment for agricultural workers. The President has made clear that he will
unveil and push his own immigration legislation in the spring, if very little progress is made in
Congress.
 Upcoming Hearings. In both the House and the Senate, the Judiciary Committees will hold
separate hearings on immigration reform. The House Judiciary Committee will hold its hearing
this Tuesday, February 5, and the Senate Judiciary Committee will hold its hearing next
Wednesday, February 13.
REGULATORY ACTIVITY
 Competitive Foods. On Friday, February 1, the Department of Agriculture released an advance
copy of its proposed rule on competitive foods (foods sold to students outside of the National
School Lunch Program and School Breakfast Program). The proposed rule will be published in
the Federal Register next week. The Department aligned the proposed nutrition standards with
the 2010 Dietary Guidelines for Americans and considered authoritative scientific
recommendations for such standards. The proposed nutrition standards apply to all age groups of
students, but some exceptions include food items with caffeine.
Under the proposed rule, any food sold in schools must:
o be either a fruit, a vegetable, a dairy product, a protein food, a “whole-grain rich” grain
product (50% or more whole grains by weight or have whole grains as the first ingredient), or
a combination food that contains at least ¼ cup of fruit or vegetable; or
o contain 10% of the Daily Value (DV) of a naturally occurring nutrient cited as a public health
concern in the 2010 Dietary Guidelines for Americans (i.e., calcium, potassium, vitamin D, or
fiber).
The standards will not go into effect until at least one full school year after public comment is
considered and an implementing rule is published to ensure that schools and vendors have
adequate time to adapt. Stakeholders will have 60 days from the time the proposed rule is
published in the Federal Register to submit written comments.
Contact Information
For additional insights about likely policy developments, please feel free to contact the authors of this
section: Dana Weekes at 202-457-6307 or dweekes@pattonboggs.com and Karen Kudelko at 202-457-
5132 or kkudelko@pattonboggs.com.
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4. Budget, Appropriations
LEGISLATIVE ACTIVITY
 Sandy Supplemental and Debt Ceiling Legislation Cleared for President’s Signature. As
expected, last week the Senate approved a $50.6 billion emergency disaster appropriations
package (H.R. 152) and a measure to suspend the debt ceiling through May 18 (H.R. 325).
Senate Democrats defeated spending offset amendments to both measures.
 President’s FY 2014 Budget Proposal Delayed. The President is statutorily required to deliver
his budget request to Congress by the first Monday in February – which is today. However, the
prolonged uncertainty surrounding sequestration and the resolution of the FY 2013 appropriations
process delayed the “pass back” process in which the White House Office of Management and
Budget (OMB) works with the agencies to determine their individual requests. Hence, the
President’s FY 2014 Budget Proposal is not expected before March 4.
 House Begins FY 2014 Budget Resolution Process. This week, House Budget Committee
Chairman Paul Ryan (R-WI), Ways and Means Chairman Dave Camp (R-MI) and Republican
Whip Kevin McCarthy (R-CA) will commence “listening sessions” to gather input from rank-and-
file Republicans on the FY 2014 Budget Resolution. As previously reported, House Republicans
intend to produce a plan that will balance the budget within 10 years.
 Sequestration and FY 2013 Appropriations. Discussions continue on how to replace the $85
billion in automatic spending cuts scheduled to go into effect on March 1 through the modified
sequestration process (the fiscal cliff agreement delayed sequestration by two months and offset
$24 billion of the total $109 billion in spending reductions mandated by the 2011 Budget Control
Act (P.L.112-25)). Senate Democrats are developing a sequestration replacement measure that
may include some spending cuts but will rely heavily on revenue. House Republicans, coming
away from recent votes, which increased taxes (the fiscal cliff agreement) and extended the debt
ceiling without equivalent spending offsets, will likely move a bill that would replace sequestration
with reductions to entitlement spending (the House passed two similar measures in 2012).
With Congress again at an impasse, there is a growing consensus that sequestration will occur
on March 1, particularly because many Members believe that federal agencies have sufficient
flexibility to maneuver funding and stall the impact of sequestration for several weeks – until
Congress must address the expiration of the FY 2013 Continuing Resolution (CR) and thus will
have another opportunity to replace sequestration. In mid-January, OMB directed federal
agencies to prepare for sequestration and the CR expiration. As such, Pentagon officials put in
place a civilian hiring freeze and are discussing furloughs for current civilian employees.
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5. Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Pam Welsh at 202-457-6493.orpwelsh@pattonboggs.com.
Cybersecurity
LEGISLATIVE ACTIVITY
 Senator Rockefeller Survey. In September 2012, Senate Commerce, Science, and Transportation
Committee Chairman John Rockefeller (D-WV) sent a letter to all Fortune 500 chief executives that
included a survey of the companies’ cybersecurity policies and their positions on specific legislative
proposals, such as voluntary standards for critical infrastructure. Last week, Chairman Rockefeller
released the results of the survey which showed that respondents were generally in favor of voluntary
cybersecurity standards. He plans to use this information to push back against the U.S. Chamber of
Commerce, which disagreed with legislation in previous Congresses that included potentially
burdensome cybersecurity standards for the private sector. Media reports indicated the U.S.
Chamber sought to downplay the apparent CEO support for voluntary standards.
EXECUTIVE ACTIVITY
 Cyber Command Expansion. The Pentagon announced last week that it has approved a major
expansion of its cybersecurity force over the next several years. The Department of Defense’s Cyber
Command is currently made up of about 900 personnel and will be expanded to include 4,900 troops
and civilians under the plan proposed by the head of Cyber Command, General Keith Alexander. The
plan calls for the creation of three types of Cyber Command forces: 1) national mission forces that
would protect computer systems connected to critical infrastructure; 2) combat mission forces that
would help commanders abroad plan and execute offensive operations; and 3) cyber protection
forces to fortify the Defense Department’s networks. Given that the plan comes at a time when the
Pentagon is being asked to cut spending, this expansion illustrates the importance of cybersecurity to
senior military officials. Though many stakeholders have praised the expansion of the Pentagon’s
cybersecurity force, some have raised concerns about how the Department of Defense will be able to
recruit and train such a large number of qualified cybersecurity personnel.
 Executive Order. Senate Homeland Security and Governmental Affairs Chairman Tom Carper (D-
DE) recently stated that the White House is likely to issue the cybersecurity Executive Order (EO)
sometime after the President’s State of the Union address on February 12. After the EO is released,
Senator Carper noted that he plans to hold a joint hearing with the Senate Commerce, Science and
Transportation Committee and the Senate Select Committee on Intelligence to review the measures
in the order and get stakeholder feedback prior to drafting and introducing new cybersecurity
legislation.
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6. Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Amy Davenport at 202-457-6528 or adavenport@pattonboggs.com.
Education
LEGISLATIVE ACTIVITY
 School Safety. On January 31, House Republican leaders on the Education and the Workforce
Committee wrote to cabinet officials – including Attorney General Eric Holder, Education
Secretary Arne Duncan, and Health and Human Services Secretary Kathleen Sebelius – to
express concerns and seek further details related to the school safety components of President
Obama’s recommendations to curb gun violence. Specifically, the lawmakers are concerned with
cost estimates and implementation timelines of executive actions the President took January 16.
While it is expected the President’s FY 2014 Budget Request may include additional funding for
the newly proposed measures, lawmakers have requested to be briefed in full by February 7.
Chairman John Kline (R-MN) plans to use the information provided as part of the Committee’s
comprehensive review of programs and policies under its jurisdiction to determine the efficacy of
school safety programs in the wake of the Newtown tragedy.
 Immigration Reform. A bipartisan group of eight Senators – including Republicans John McCain
(AZ), Lindsey Graham (SC), Marco Rubio (FL) and Jeff Flake (AZ) and Democrats Chuck
Schumer (NY), Dick Durbin (IL), Robert Menendez (NJ) and Michael Bennet (CO) – unveiled at a
press conference on Monday, January 28 a proposal for immigration reform, making it a top
priority issue in Congress this year. The Senators noted that many details still need to be worked
out, but they hope to have a draft bill available by early March, which would improve border
security and enhance employment verification while also creating a path to legal status and
citizenship for certain undocumented immigrants. Specifically, the proposal includes a path to
citizenship for undocumented immigrants who came to the United States as minors, often
referred to as DREAMers. This proposed path to citizenship is derived from legislation which
seeks to make college more affordable and remove certain barriers to access for undocumented
children.
Another small bipartisan group of Senators, including Republicans Orrin Hatch (UT) and Rubio
and Democrats Amy Klobuchar (MN) and Chris Coons (DE), introduced a separate legislation (S.
169, The Immigration Innovation Act of 2013) last week to increase visas for legal immigrants
with advanced skills in STEM fields. Such a measure is likely to be included in a larger reform
package.
President Obama spoke in support of immigration reform at a high school in Las Vegas, Nevada
on Tuesday, January 29 where he called for swift action on the Hill. While the President is
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7. generally supportive of the parameters set forth by both groups, the Administration is expected to
unveil its draft legislation in early spring if progress in Congress stalls.
 Campus Crime Reporting Changes and VAWA. As reported last week, the Violence Against
Women Act (VAWA, S. 47) measure introduced in January has quickly gained momentum in the
Senate, already reaching 59 cosponsors. Additionally, the Senate’s primary sponsor, Senator
Patrick Leahy (D-VT) announced last week that 60 Senators now support the measure, which he
has moved to be considered on the Senate floor. As previously reported, the bill includes an
expansion of the Clery Act to include incidents of domestic violence, dating violence, and stalking.
 Hearings and Events. As expected and forecasted in earlier editions of Capital Thinking
published in January, Senate Health, Education, Labor and Pensions Committee Chairman Tom
Harkin (D-IA) has turned his attention to the Administration’s No Child Left Behind waivers. The
Committee will hold its first hearing on the issue on Thursday, February 7. The hearing is titled
"No Child Left Behind: Early Lessons from State Flexibility Waivers. The House Education and
the Workforce Committee will hold a hearing Tuesday, February 5 entitled “Challenges and
Opportunities Facing America's Schools and Workplaces.”
Contact Information
For additional insights about likely policy developments, please feel free to contact the authors of this
section: Amy Budner Smith at 202-457-6154 or abudner@pattonboggs.com and Dana Weekes at 202-
457-6307 or dweekes@pattonboggs.com.
Energy
LEGISLATIVE ACTIVITY
 Energy Taxes. Senate Majority Leader Harry Reid (D-NV) hinted last week that the Senate will
consider eliminating oil and gas company tax preferences as a way of averting automatic spending
cuts to a wide range of defense and social programs set to occur March 1 (unless Congress changes
current law). The President’s spokesman added that, “the idea that you need to subsidize an industry
that has enjoyed record profits—that taxpayers have to subsidize it—just doesn’t make sense in a
time when we have to make choices about how best to use our resources.” Multiple efforts by Senate
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Democrats in the 112 Congress to eliminate the tax preferences enjoyed by major integrated oil
companies were not successful.
 Congressional Hearings. On Tuesday, February 5, the House Energy and Commerce Committee
will hold a hearing on “American Energy Security and Innovation: An Assessment of North America’s
Energy Resources.” On Wednesday, February 6, the House Science, Space, and Technology
Committee will hold a hearing on “American Competitiveness: The Role of Research and
Development.” The Senate Energy and Natural Resources Committee plans to hold a hearing
regarding LNG exports on February 12.
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8. REGULATORY ACTIVITY
 DOE Advisory Committee Meetings. The Department of Energy’s Hydrogen & Fuel Cell Technical
Advisory Committee will host a webinar meeting on February 15. The State Energy Advisory Board
will host a teleconference meeting on February 21 to make recommendations to the Assistant
Secretary for the Office of Energy Efficiency and Renewable Energy. The Biological and
Environmental Research Advisory Committee will meet February 21 - 22. The Basic Energy Sciences
Advisory Committee will meet February 28 - March 1.
 OCS SEMS Rule. The Bureau of Safety and Environmental Enforcement has submitted proposed
revisions to Safety and Environmental Management Systems regulations to the White House Office of
Management and Budget for review. There is no legal deadline to release the final rule, though it is
expected this spring.
 Coal. The National Coal Council will next meet on March 7 in Washington, DC.
 USEITI. The U.S. Extractive Industries Transparency Initiative Advisory Committee will hold its first
meeting on February 13 at the Interior Department.
 Gulf OCS Lease Sales. The Bureau of Ocean Energy Management will host five public meetings in
the Gulf States, March 26 - April 1, regarding two future offshore drilling lease sales in the Eastern
Gulf of Mexico Planning Area. The meetings will review the proposals, alternatives, and mitigating
measures to be analyzed in the required environmental documentation process.
 Nuclear. Comments on the Nuclear Regulatory Commission’s draft regulatory guide, “Quality
Assurance Program Requirements (Operations)” are due by April 1. The updated standard
incorporates operational experience since the original standard was developed.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Tanya DeRivi at 202-457-6504 or tderivi@pattonboggs.com.
Financial Services
LEGISLATIVE ACTIVITY
 Senate Republicans to Block CFPB Director Nomination. Senate Minority Leader Mitch
McConnell (R-KY) and 42 other Republicans sent a letter to President Obama objecting to the
nomination of Richard Cordray as Director of the Consumer Financial Protection Bureau (CFPB).
Republicans oppose the current organization of the CFPB, established by the Dodd-Frank Act.
Instead of one Director, Republicans prefer governance by a board of directors.
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9.  House Committee to Review Federal Housing Administration. On Wednesday, February 6, the
House Financial Services Committee will hold a hearing titled, “Examining the Proper Role of the
Federal Housing Administration (FHA) in our Mortgage Insurance Market.” Housing finance experts
and analysts will testify about the FHA’s financial condition and its role in the housing market.
Chairman Jeb Hensarling (R-TX) has also announced a second hearing will take place on February
13 featuring FHA Commissioner Carol Galante.
REGULATORY ACTIVITY
 CFTC to Hold Roundtable on Customer Protection. On Tuesday, February 5, the Commodity
Futures Trading Commission (CFTC) will host a roundtable titled, “Enhancing Protections Afforded
Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing
Organizations.” The roundtable will focus on: the role of an “Examination Expert” to review Self-
Regulatory Organization (SRO) examination programs; the proposed disclosures of firm specific risks
and financial reporting; the proposed requirement for segregation and secured acknowledgement
letters; and the proposed residual interest requirements for Futures Commission Merchants.
 SEC to Discuss JOBS Act; Decimalization. On Tuesday, February 5, the Securities and Exchange
Commission will hold a roundtable on decimalization. The event will feature three panel discussions.
The first will address the impact of tick sizes on small and middle capitalization companies; the
economic consequences (including the costs and benefits) of increasing or decreasing minimum tick
sizes; and whether other policy alternatives might better address the concerns animating Section
106(b) of the JOBS Act. The second panel will address the impact of tick sizes on the securities
market in general, including what benefits may have been achieved, and what, if any, negative effects
have resulted. The third panel will address potential methods for analysis of the issues, including
whether and how to conduct a pilot for alternative minimum tick sizes. A full agenda and the panelists’
bios are available on the SEC’s website.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Matthew Kulkin at 202-457-6056 or mkulkin@pattonboggs.com.
Health Care
LEGISLATIVE ACTIVITY
 House Oversight Hearing. The House Committee on Oversight and Government Reform will hold a
hearing on Tuesday, February 5, titled “Government Spending: How Can We Best Address the
Billions of Dollars Wasted Every Year?”
 House VA Hearing. The House Committee on Veterans’ Affairs Subcommittee on Oversight and
Investigations has scheduled a hearing on February 5, titled “Analyzing VA’s Actions to Prevent
Legionnaire’s Disease in Pittsburgh.
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10.  Finance Recommendations on Fraud and Abuse. Six current and former members of the Senate
Finance Committee, led by Ranking Member Orrin Hatch (R-UT) and Chairman Max Baucus (D-MT),
released a comprehensive report outlining recommendations from more than 160 stakeholders in the
health care community on ways to improve federal efforts to combat waste, fraud, and abuse in the
Medicare and Medicaid programs. Joining Hatch and Baucus on the report are Senators Tom Coburn
(R-OK), Ron Wyden (D-OR), Chuck Grassley (R-IA), and Tom Carper (D-DE). Recommendations
include increasing federal funding of state Medicaid anti-fraud activities; eliminating duplication and
redundancy in Federal and state Medicare/Medicaid anti-fraud programs; changing certain Medicare
payment policies that, through disparate pricing issues, lead to fraud, waste, and abuse; ensuring that
provider enrollment policies are consistent and utilized effectively; requiring the Centers for Medicare
& Medicaid Services (CMS) to use existing statutory authorities (e.g., moratorium, mandatory
compliance programs) that they have yet to utilize; clarifying the circumstances in which use of care
and the setting for care is appropriate such as when it is appropriate to use inpatient care versus
outpatient; making numerous process changes to how the various CMS audit contractors operate to
ensure they are doing so efficiently and effectively; balancing the incentives for Medicare contractors
to identify overpayments with penalties for contractors whose findings are overturned on appeal
through the CMS administrative process; and creating an advisory panel to provide clinical input as a
component of contractor oversight.
REGULATORY ACTIVITY
 CMS Bundled Payment Initiative. CMS announced that over 500 organizations will begin
participating in the Bundled Payments for Care Improvement Initiative. Through this new initiative,
made possible by the Affordable Care Act, CMS will test how bundling payments for episodes of
care can result in more coordinated care for beneficiaries and lower costs for Medicare.
 Medicare Competitive Bidding Round 2. CMS announced that it is expanding the Medicare
Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) Competitive Bidding
Program that replaces the existing fee schedule amounts in selected areas with prices based on
suppliers’ bids. The new prices will go into effect in July, with anticipated savings of $25.7 billion to
the Part B trust fund and $17.1 billion in savings to beneficiaries between 2013 and 2022.
 ACA Regs. The Department of Health and Human Services (HHS) has released a Patient Protection
and Affordable Care Act; Exchange Functions: Eligibility for Exemptions; Miscellaneous Minimum
Essential Coverage Provisions Proposed Rule. This proposed rule would implement certain functions
of the Affordable Insurance Exchanges (“Exchanges”). These specific statutory functions include
determining eligibility for and granting certificates of exemption from the shared responsibility
payment for not maintaining minimum essential coverage as described in section 5000A of the
Internal Revenue Code. Additionally, this proposed rule implements the responsibility of the Secretary
of HHS, in coordination with the Secretary of the Treasury, to designate other health benefits
coverage as minimum essential coverage by providing that certain coverage be designated as
minimum essential coverage. It also outlines substantive and procedural requirements that other
types of individual coverage must fulfill in order to be certified as minimum essential coverage under
the Internal Revenue Code. Comments are due on March 18 by 5 pm.
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11. The Internal Revenue Service (IRS) has released the Health Insurance Premium Tax Credit Final
Rule. These final regulations provide guidance to individuals related to employees who may enroll in
eligible employer sponsored coverage and who wish to enroll in qualified health plans through
Affordable Insurance Exchanges (Exchanges) and claim the premium tax credit.
The IRS also released the Shared Responsibility Payment for Not Maintaining Minimum Essential
Coverage Proposed Rule. These proposed regulations provide guidance on the liability for the shared
responsibility payment for not maintaining minimum essential coverage. Comments are due on May 2
by 5 pm.
OTHER HEALTH NEWS
 MACPAC Meeting. The Medicaid and CHIP Payment and Access Commission will hold a public
meeting on February 12 and 13. The agenda will be released in advance of the meeting.
 IOM Meetings. The Board on Health Care Services will hold its second workshop on “Implementing a
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National Cancer Clinical Trials System for the 21 Century” on February 11 - 12. The purpose of this
workshop is to examine ongoing activities in the implementation of the recommendations put forth in
the IOM consensus report, A National Cancer Clinical Trials System for the 21st Century. Workshop
sessions and discussions will highlight progress made by NCI and the Clinical Trials Network, funding
needs and opportunities, strategies for prioritizing trial concepts, addressing ongoing and future
implementation challenges, opportunities for the development of effective partnerships to accelerate
innovation, and current regulatory issues.
 The Board will also hold a meeting on February 13 - 14 on “International Regulatory Harmonization
Amid Globalization of Biomedical Research and Medical Product Development.” This public workshop
will address needs for international harmonization of regulatory standards to support the
development, evaluation and surveillance of biomedical products. Specifically, the discussions at the
workshop will help identify principles, potential approaches, and strategies to advance the
development or evolution of more harmonized regulatory standards.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Eugenia Edwards at 202-457-5622 or eedwards@pattonboggs.com.
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12. International, Defense, and Homeland Security
LEGISLATIVE AND EXECUTIVE BRANCH ACTIVITY
 Senate Foreign Relations Committee (SFRC) and State Department Developments. Following
Hillary Clinton’s departure from the State Department on Friday, new Secretary of State John Kerry
will settle in at Foggy Bottom next week. Secretary-designate Kerry was confirmed by his former
Senate colleagues on a 94-3 vote this past Tuesday. Senator Bob Menendez (D-NJ) officially will take
over as SFRC Chair next week.
 Senate Armed Services Committee (SASC), House Armed Services Committee (HASC), and
Defense Department Developments. Secretary of Defense-designate Chuck Hagel’s performance
before the SASC at his nomination hearing on Thursday likely did not win the former Senator any new
votes for his confirmation, but it may not have lost him any, either. SASC Chairman Carl Levin (D-MI)
could schedule a Committee vote on the nomination as soon as this coming Thursday. SASC
Republicans already had expressed varying degrees of skepticism regarding President Obama’s
choice in the lead-up to the hearing, and Senator Hagel’s responses to their pointed questions simply
may have cemented their “no” votes on the nomination. Most non-SASC Republicans also will vote
against Senator Hagel on the Senate floor, and HASC Chairman Buck McKeon (R-CA) announced
his opposition following Thursday’s hearing. However, Senate Appropriations Defense (SAC-D)
Subcommittee Ranking Member Thad Cochran (R-MS) has not retracted his support for the
nomination, and fellow SAC-D Member Susan Collins (R-ME) offered kind words for Senator Hagel
following their January 15 meeting. Meanwhile, SASC Member Joe Manchin (D-WV), considered by
many to be the most conservative Democrat in the Senate, focused more at the hearing on the
combative tone of his Republican colleagues than on critiquing Secretary-designate Hagel’s record.
Indeed, no Senate Democrat has come out in opposition to Senator Hagel’s nomination, and few
observers expect that status to change in the coming week.
 House Foreign Affairs Committee (HFAC) Developments. On Tuesday, February 5, two HFAC
Subcommittees will hold hearings. The Middle East and North Africa Subcommittee, now headed by
new Chairwoman Ileana Ros-Lehtinen (R-FL) and new Ranking Member Ted Deutch (D-FL), will
examine what the Subcommittee deems “The Fatah-Hamas Reconciliation” in the Palestinian
Authority. Concurrently, HFAC’s Global Human Rights and Terrorism Subcommittees, chaired by
Congressman Chris Smith (R-NJ) and Congressman Ted Poe (R-TX), respectively, will join the
Energy and Commerce Committee’s Communications Subcommittee in examining global Internet
freedom issues.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Scott Thompson at 202-457-6110 or sthompson@pattonboggs.com.
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13. Transportation
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 Priorities for the 113 Congress. Senate Environment and Public Works (EPW) Chairman
Barbara Boxer (D-CA) recently sat down with House Transportation and Infrastructure Committee
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Chairman Bill Shuster (R-PA) to share priorities for the 113 Congress and MAP-21
reauthorization. Transportation funding was the main topic of discussion with Boxer declaring that
“everything’s on the table” and that the Chairmen think there’s a way to do “a different tax that is a
user fee that will really reach people…who drive cars that are plug-in hybrid.”
 LaHood leaving DOT. On January 29, Ray LaHood announced that he will step down as the
Secretary of Transportation. Rumored potential replacements include National Transportation
Safety Board Chairman Deborah Hersman, former Pennsylvania Governor Edward Rendell,
former Michigan Governor Jennifer Granholm and Los Angeles Mayor Antonio Villaraigosa, who
received a strong endorsement from Chairman Boxer.
 New Starts/Small Starts Final Rule. On January 31, the Federal Transit Administration (FTA)
held the first of three webinars on the New Starts final rule published on January 9 in the Federal
Register and the accompanying proposed policy guidance. The following two webinars will take
place on Tuesday, February 5 and Wednesday, February 13. Comments must be received on or
before March 11.
 National Infrastructure Bank. With the departure of John Kerry (D-MA) and Kay Bailey
Hutchison (R-TX) from the Senate, Senator Mark Warner (D-VA) will lead the effort to establish a
national infrastructure bank (NIB). Last Congress, Kerry, Hutchison and Warner worked together
to advance the Building and Upgrading Infrastructure for Long-Term Development (BUILD) Act,
which proposed the establishment of a NIB for transportation, water, and energy facilities
projects. The BUILD Act was also encompassed in President Obama’s American Jobs Act and
had been considered for inclusion in MAP-21 but was withdrawn during the Senate Banking
Committee’s markup of the transit title.
Contact Information
For additional insights about likely policy developments, please feel free to contact the authors of this
section: Jessica Monahan at 202-457-6302 or jmonahan@pattonboggs.com and Jared Fleisher at 202-
457-6341 or jfleisher@pattonboggs.com.
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