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Jul 30, 2022 • 1h 22min

CD256: Poisonous Pet Collars

Seresto Flea and Tick Collars for dogs and cats have been sold to Americans since 2013. During that time, the EPA has received approximately 100,000 reports of illnesses and 2,500 reports of deaths of animals that wore a Seresto Flea and Tick collar, by far the most reports received about any flea and tick treatment on the market. In this episode, hear testimony from scientists about the Environmental Protection Agency’s disturbingly lax review processes for pesticides in pet products and learn why your vote in November is likely to determine if these popular but dangerous products will stay on American shelves. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Listen to the latest episode of Jen's new podcast with Andrew Heaton and Justin Robert Young — We're Not Wrong Episode 12: To report an incident directly to the EPA via email Report.Pesticide.Incident@epa.gov Executive Producer Recommended Sources Bruce Bueno de Mesquita and Alastair Smith. Public Affairs: 2011. Background Sources Recommended Congressional Dish Episodes Reports on Seresto and Pesticides Jun 15, 2022. House Committee on Oversight and Reform. House Committee on Oversight and Reform, Subcommittee on Economic and Consumer Policy. June 2022. Lauretta Joseph. May 19, 2022. Johnathan Hettinger. Sept. 24, 2021. USA Today. Jordan Liles. Mar 8, 2021. Snopes. Johnathan Hettinger. Mar 2, 2021. USA Today. Lawrence J. Dyckman et al. July 1995. U.S. Government Accountability Office. Lobbying 2022. Open Secrets. Open Secrets. Open Secrets. The Hearing June 15, 2022 Witnesses: Faye Hemsley & Omarion Hemsley, Owners of Deceased Pet Thomas Maiorino, Owner of Deceased Pet Jeffrey Simmons, President and Chief Executive Officer, Elanco Animal Health Incorporated Nathan Donley, Ph.D, Environmental Health Science Director, Center for Biological Diversity Karen McCormack, Former Scientist, Policy Analyst, and Communications Officer (ret.), Office of Pesticide Programs, Environmental Protection Agency Carrie Sheffield (minority witness), Senior Policy Analyst, Independent Women’s Voice Clips 1:20 Rep. Raja Krishnamoorthi (D-IL): As early as 2015, just a few years after the collar entered the US market, an EPA investigation found that among similar products, the Seresto collar “ranked number one” by a wide margin in terms of total incidents, major incidents and deaths, even after factoring in companies’ relative sales. Those findings weren't enough to drive the makers of Seresto collar or the EPA to act. 1:50 Rep. Raja Krishnamoorthi (D-IL): In 2016, Canada's equivalent of the EPA known as the PMRA, concluded based on a review of the same American data available to the EPA that the collar posed too great a risk to pets and their owners to be ever sold in Canada. 2:10 Rep. Raja Krishnamoorthi (D-IL): Even as the death count rose, the EPA allowed Seresto to remain on the market here without even so much as requiring additional warning labels that regulators mandated in places ranging from Australia to Colombia to the European Union. 2:30 Rep. Raja Krishnamoorthi (D-IL): The companies that manufactured the Seresto collar first Bayer animal health and then later Elanco were also aware of the risks, the incidents and the deaths, but they too failed to act. Instead, they hired third party industry insiders to conduct so-called independent reviews of the incident data, which ended up protecting their $300 million a year market but ended up endangering pets. So the Seresto collar stayed the same and so did the consequences. 4:15 Rep. Raja Krishnamoorthi (D-IL): This particular collar has caused 100,000 incidents reported to the EPA and over 2500 pet deaths reported to the EPA. 4:30 Rep. Raja Krishnamoorthi (D-IL): The steps that we are asking for today are crucial, because it's important to protect our pets and our families, too. I now call upon my distinguished colleague, Mr. Cloud for his opening statement. Rep. Michael Cloud (R-TX): Thank you, Chairman. This is the first hearing of the Economic and Consumer Policy Subcommittee this year, and we've been in session for 52 days this year. And our first hearing is on pet collars. And I do realize that our pets are a huge part of our lives, they enrich our families, they provide companionship for my kids, they've helped foster responsibility and compassion and care, important ethics we need in our society. Just recently, our family mourned the loss of our guinea pig, biscuit. And so pets are a huge part of our family lives. But I have to admit that when I saw that this was going to be on the agenda for this week, I cannot help but be concerned, especially coming from South Texas about the 1000s 10s of 1000s of human lives that have passed away due to fentanyl and due to an open border and due to the policies of this administration to continue to aid and abet cartels. And I realized that this is the economic and Consumer Policy Subcommittee. And so I think about economic policy happening right now and where the minds of the American people are. Gas is now averaging $5 A gallon nationwide. For the first time in history. We have not had a hearing. Inflation is at a 40 year high. We have not had a hearing, the American people cannot find baby formula. We still haven't had a hearing. I've mentioned fentanyl is killing Americans, especially our teens at unprecedented rates. We have not had a hearing. Biden's systemic elimination of the safe and secure border he inherited has led to the worst humanitarian and national security crisis in this country's history. We have not had a hearing this term, we could talk about how inflation is affecting the cost of owning a pet, including the increased cost of food, toys, accessories, but we're not talking about that either. Instead, we're holding a hearing on the pet collar, which fights fleas and ticks. And as any pet owner knows fleas and tick management is an essential part of pet care. But I'm not sure it's an essential part of congressional oversight, especially when we take in mind where the American people are at. And frankly, I've talked to a number of people in my district and others who live in other parts of the country and they are really surprised that this has risen to one of the top priorities of commerce at this time in juncture. The subcommittee Republicans would rather explore efforts to help American consumers during these trying times, we would gladly have joined the chairman in holding a hearing on the shortage of baby formula. Moreover, we have welcomed the chance to explore TikTok’s troubling practice of showing dangerous content to minors, an investigation you all started last year. In fact, it's now come to light that teenagers are using tick tock and other social media platforms to purchase illicit drugs including unknowingly in many cases, in most cases, fentanyl. Social media platforms are also using it to recruit young people into the gig economy of human trafficking. A hearing on that crisis could be incredibly important. And on the subject of our nation's youth, CDC bureaucrats have actively pursued an agenda to close schools during the pandemic instead of following the science damaging our children's financial, mental, physical, emotional, and also their learning for years to come. But we still have not had a hearing. Americans are facing incredible economic issues which require us as elected officials to listen and to respond. I do appreciate the fact that our pets play an important part of our lives. We should be kind to animals and we should teach our children to do the same. But I do care immensely more about the human lives that we were elected to serve. 10:20 Rep. Raja Krishnamoorthi (D-IL): A recorded vote has been requested — we will pause while the we will get the clerk out. 12:00 Rep. Byron Donalds (R-FL): Mr. Chairman, it's already been about what? A minute and a half. Where's the clerk? Is the clerk on lunch and not here today? Rep. Krishnamoorthi (D-IL): I think the clerk is on the way Mr. Donalds, thank you. Rep. Donalds: Is the clerk sitting in the side office just hanging out? I mean, come on, Mr. Chairman. 21:20 Clerk: Mr. Cloud? Rep. Michael Cloud (R-TX): Yes Clerk: Mr. Cloud votes yes. Mr. Keller? Rep. Fred Keller (R-PA): Yes Clerk: Mr. Keller votes yes. Mr. Franklin? Rep. C. Scott Franklin (R-FL): Yes Clerk: Mr. Franklin votes yes. Mr. Clyde? Rep. Andrew Clyde (R-GA): Yes. Clerk: Mr. Clyde votes yes. Mr. Donalds? Rep. Byron Donalds (R-FL): Yes Clerk: Mr. Donalds votes yes. 26:31 Thomas Maiorino: My name is Thomas Maiorina. I reside in Mount Laurel, New Jersey with my wife Monica. I am the father of three boys. My youngest son, Robert turned 12 in 2011. After years of asking for a dog, he wore us down and we decided to rescue a dog from a southern shelter for my son's birthday. After researching online, we adopted a mixed breed mutt that Robbie and his two other brothers named Rooney. Rooney swiftly became a loved member of our family. A bit rambunctious, she was just what a 12 year old boy needed. She loved the run and chase anything the move in the yard. By all measures, we took great care to ensure Rooney had a healthy and happy life. We took her on daily walks, sometimes three a day, hikes on park trails. We monitor her diet and made sure she was seen by the veterinarian as needed, and she received all of her shots. Because she was a bit rambunctious and we lived in a wooded area where there's a lot of wildlife, we were constantly concerned about the problems of fleas and ticks. We consulted with a veterinarian after getting Rooney to determine the best way to protect her against this. We use a variety of prevention methods for the first few years and when we changed veterinarians in approximately 2013 or 14, the new veterinarian strongly recommended that we use the Seresto flea and tick collar, based on all of our options. We heeded that advice and purchased Seresto collars from our local PetSmart. The collars were intended to provide protection for up to eight months. We noticed that after fixing a collar to Rooney’s neck, she began to itch and first had that treated and tested for allergies. We took her to the vet several times during 2018 seeking to find the cause for the ever increasing itching. After several visits and multielement medications, they were unable to determine the cause and we switched to a specialist in 2019 to seek further assistance, where they provided allergy shots and other medications to address the worsening itching and related symptoms. Rooney's behavior then became more erratic as the months wore on she began linking her paws so feverishly they would bleed. She also developed bleeding patches on her stomach. Ultimately, in October 2020, Rooney suffered horrendous grand mal seizure in the presence of myself and my wife. The damage done by the seizure was irreversible. She was a shell of her former self and ultimately, the family decided the most humane thing would be to put Rooney to sleep at the age of nine. In early March 2021, I read an article online about Seresto pet collars resulting in the deaths of 1700 Pets without any warnings from the EPA or the manufacturer. I sought out legal representation not because I wanted financial compensation, but because I took great pains to care for Rooney. The final 18 months of her life were agonizing to watch if I could help prevent another family from going through what my family went through. I wanted to act. I'm here today in furtherance of that effort. I appreciate the committee taking the time to investigate this matter. And thank you for your time. 33:30 Jeffrey Simmons: There are a few points I'd like to emphasize upfront. First, the EPA approved Seresto following more than 80 safety and toxicity studies, all of which show that Seresto and its ingredients have a strong safety profile. Second, more than 80 regulatory bodies around the world have approved Seresto. Seresto is widely used and more than 80 million collars worn over the past decade to protect dogs and cats from fleas and ticks around the world. 34:00 Jeffrey Simmons: Third, adverse event reports are not intended to be, and in fact are absolutely not, proof of causation. Reports require further investigation and analysis to determine cause. And after years of review, our pharmacovigilance team made up of veterinarians and other experts who study adverse event reports has not identified a single death caused by the active ingredients in the collar. 36:45 Jeffrey Simmons: No product is without risk. What matters is whether those risks are reasonable. And in light of the benefits and numerous studies and the incident report data for Seresto demonstrate the product does not pose an unreasonable risk and has a strong safety profile, which is why the American Veterinary Medical Association opposed canceling Seresto’s EPA registration. 38:05 Nathan Donley: My name is Dr. Nathan Donley. I'm the science director for the Environmental Health Program at the Center for Biological Diversity. I have a PhD in Cell and Developmental Biology from Oregon Health and Sciences University. The last seven years of my professional life have been spent researching how pesticides impact people and the environment and the regulatory failures that can actually facilitate harm rather than prevent it. I published three peer reviewed scientific articles and five technical reports on this subject. I've authored over 100 technical scientific comments to the EPA on pesticide documents, including flumethrin and imidacloprid, the two active ingredients in the Seresto collar. I've read through 1000s of pages of FOIA documents I requested on matters related to the approval and continued use of Seresto. 39:40 Nathan Donley: While other agencies like the FDA have robust systems in place to surveil harms from products under their purview, EPA only requires minimal information be submitted four times a year and they delegate this responsibility to the pesticide industry itself. The limited information that is collected includes only the pesticide product name, where the incident occurred, and the severity of the incident. That's it. Oftentimes, the agency doesn't even know if the incident involves a dog or a cat. Even though the EPA determines what incident information it collects, it then turns around and laments that the incident data are insufficient to take regulatory action to protect public health, the environment and our pets. It's a system designed to achieve nothing other than maintaining the status quo. Worse yet, reported incidents significantly underestimate the true scope of harm. The EPA recently estimated that only one in 25 pesticide incidents involving another pesticide called Kamba was actually reported to the authorities. That's only a 4% reporting rate. Given that 100,000 people have reported their concerns about Seresto, this is very alarming because the true number of harmful incidents to pets could be potentially far higher. 41:05 Nathan Donley: The EPA’s counterpart in Canada was so concerned about Seresto incidents and harms of pets and humans that it denied Seresto approval in 2016. Canada analyzed U incident data and determined that Seresto collars had an incident rate 50 times greater than the average flea collar and 36 times greater than Canada's trigger for review. 41:25 Nathan Donley: EPA has no trigger for review of any pesticide product, no matter how much harm is being reported. And because the agency has no mandated trigger for reviewing pesticides like Seresto, rather than choosing to use incident reporting data to inform a robust regulatory process and take dangerous products off the market, EPA routinely chooses to do nothing at all. And that's especially troubling when you consider that Seresto is just one of 18,000 pesticide products currently approved by the EPA. 42:40 Karen McCormack: My name is Karen McCormack. At the present time I am a retired government employee after working over 40 years at the Environmental Protection Agency. During my career at EPA, I first worked in an EPA laboratory as a research coordinator. And in that capacity, I conducted research on numerous pesticides. Later I transferred to EPA headquarters in Washington DC, and worked in various positions in the pesticide program as a scientist, policy analyst, and a communications officer. I also worked in a number of offices at EPA including the Office of the Assistant Administrator for Pesticides and Toxins. Although I'm retired from EPA, I'm still closely following a number of environmental topics and one of those topics of interest to me has been the impact of flea and tick pet products on cats and dogs. 43:30 Karen McCormack: The US Environmental Protection Agency is charged with regulating products that contain pesticides and in ensuring that all pesticide products are safe to use. Before 1996, EPA did not consistently require manufacturers to conduct animal safety studies for pet products containing pesticides. Because pet products with pesticides were available readily in commercial stores, consumers thought they must be safe. This is not necessarily the case. Flea and tick products are designed to kill insects, and they often contain poisonous chemicals. When combined with pesticides that are used outside the home and in the water and food that people drink and eat, the aggregate risks from all these sources of pesticides can be high, especially for children who are vulnerable to toxic chemicals -- much more vulnerable than adults. And it wasn't until the passage of the 1996 Food Quality Protection Act that EPA began to examine the risks from sources other than food, including risks from pet products containing pesticides. After the passage of FQPA, pesticide manufacturers were required to submit to EPA animal safety studies and incident reports showing harm to animals and humans exposed to pesticides and pet products. Between 2012 and the present time the EPA received an increasing number of incident reports related to the use of flea and tick pet collars for dogs and cats. The toxic effects that were described in these many incident reports from the use of certain pet collars ranged from mild effects, such as skin irritation to more severe effects such as intense tremors, seizures, paralysis, organ failure and death. The largest number of incident rate counts that EPA received during this period were from the use of pet collar called Seresto. 45:35 Karen McCormack: Between January 2012 and the present time, EPA has received over 100,000 incident reports, and these incident reports include human incidents as well as pet incidents. These reports also include at least 2300 reports of pet deaths. The number is most likely a very low estimate of the actual number of incidents that are occurring since many pet owners do not know that they can report incidents to EPA and they may not know how to correlate the adverse effects in their pets with a particular pet product. 46:30 Karen McCormack: There are no independent organizations that rank the safety of pet products. And the sales data which is needed to rank the safety of pet products is considered confidential business information by the manufacturers. EPA’s risk assessments also do not tell the full story of what pet products are safe, as they rely heavily on industry generated studies that were conducted on mice and rats rather than dogs and cats. And EPA’s risk assessments also are based mainly on studies that were conducted with only one pesticide in Seresto rather than the combined pesticides in this pet product. 47:10 Karen McCormack: Although the original manufacturers of Seresto, Bayer, did conduct a number of efficacy and safety studies in dogs and cats treated with Seresto, the company did not conduct two very critical studies that are important for determining the safety of a pet product. These tests include a pet transferable residue study, a petting study, to determine the exposure of humans to Seresto. And they did not conduct a study that measures the amount of pesticide that gets in the blood of treated dogs and cats. 48:45 Carrie Sheffield: My name is Carrie Sheffield and I'm a senior policy analyst at the Center for Economic Opportunity at Independent Women's Forum. We are a nonprofit organization committed to increasing the number of women who value free markets and personal liberty. 2:44:20 Rep. Raja Krishnamoorthi (D-IL): Let me just show you some analysis that was conducted by Elanco, which we would just refer to as well as the EPA, as well as the Canadian equivalent of the EPA, which is called the PMRA. Essentially, we look at this chart here, and we see that at the top Elanco computed that 0.51% of pet deaths were “possibly or probably” caused by the Seresto collar. The PMRA in Canada, looking at a sample of pet deaths concluded that 33% of those pet deaths were possibly or probably caused by Seresto collars. And the EPA here, concluded that 45% were possibly or probably caused by pet by the Seresto collar. Now, sir, I think originally, you said that there is no scientific evidence, no evidence of a causal link, this is clearly evidence, it was so compelling that the Canadian equivalent of the EPA never allowed for Seresto collars to be sold in Canada, correct? Jeffrey Simmons: Yes, I'm aware of that decision. I would also add that 80 other countries have approved this product, we've had over 80 million collars actually used. I'm not familiar with this data comparison, but what I can say is following the EPA regulatory process around the oversight, that we have pharmacovigilance, close to 200 veterinarians and staff on our team, looking at the data through the way the EPA wants us to we have not seen a linkage from the active ingredients. Rep. Krishnamoorthi: I understand that sir, I understand you haven't seen the linkage, although other authorities have and their scientists who are not paid by you have done so. 2:46:25 Nathan Donley: This is what we commonly see, quite frankly, when the regulated industry is doing their own research. It commonly finds that their products are safer than when government agencies or academic scientists take on a similar analysis. 2:46:55 Rep. Raja Krishnamoorthi (D-IL): We have FOIA documents from the EPA, and emails internal to the EPA talking about the Seresto collar. Here's just one of them. This is from an employee who basically voiced their opinion about recent coverage of the Seresto controversy, he said, “looks like the sh*t has hit the fan….will be interesting seeing where this goes. I hope there is a FOIA for all communications on this so that our emails are made public. We have been screaming about Seresto for many years.” I presume that you've heard some of these screams and concerns, correct, Ms. McCormack? Karen McCormack: That's correct. A number of EPA employees have contacted me and given me detailed descriptions about what's happening with Seresto and they were very upset that EPA refused to do anything about it. 2:48:25 Karen McCormack: A number of the scientists, and this is not unusual, feel that the decision makers are not considering the science and they're making decisions based on political reasons. I don't know if I have time to talk about this, but I did look at the science that the Canadian government did, the causality analysis. They looked at the consistency and toxicity of effects from exposure of pets to Seresto. And what they found was very disturbing. It was so disturbing that they decided the risks were too high to approve Seresto and they could not be mitigated by putting a label statement on the product or by issuing warning labels, so they refused to approve Seresto. 2:49:25 Rep. Michael Cloud (R-TX): Thank you, Ms. McCormack, for acknowledging that the EPA sometimes makes political decisions, so that's something we'll definitely be coming back to next term. 2:55:05 Rep. Katie Porter (D-CA): Are the active ingredients for Seresto in the United States different from the active ingredients for Seresto collars in other countries? Jeffrey Simmons: No, I do not believe they're any different than the other 80 countries. Rep. Porter: In other countries like in Colombia and Australia, the warning labels for Seresto collars classify the collar as highly toxic and as poison. 2:55:50 Rep. Katie Porter (D-CA): Does the label in the United States have language? Like highly toxic or poison? Yes or no? Jeffrey Simmons: It does not. Rep. Porter: Okay. So the warning label here in the United States, though does say that mild reactions may occur and mentions hair loss, scratching and redness. The most severe symptoms listed are eczema and lesions. This is the warning label: does it mention the potential for death? Jeffrey Simmons: It does not. Rep. Porter: So a pet owner looking at this label that we're looking at would have absolutely no reason, no way to know that Seresto may have caused roughly 100 pet deaths. That's what both the Canadian Pest Management Agency, the PMRA, and the EPA found. Will you change this label, so that it includes deaths as a possible side effect? Jeffrey Simmons: Congresswoman, we do not believe the scientific data warrants a label change. And again, that is not just the 80 studies were submitted. There's been 20 additional added studies since and all of the oversight data that's been done on the 33 million pets over the 10 years. So again, following an EPA regulated process, we're always open if a data warranted, some need for a change, we would do that. 2:57:30 Rep. Katie Porter (D-CA): The EPA encouraged both your predecessor, Bayer, and your company, Elanco, to update the warning label. Yet, you just said that you never have. So the federal government did in fact advise you to update the label and you failed to do so. Is that correct? Jeffrey Simmons: I do not believe that is correct. We are in regular engagement with EPA. We have not received any formal…there's no data that warrants that and there's been no formal engagement on that. 2:58:15 Rep. Katie Porter (D-CA): The EPA asked Bayer, the predecessor here, in 2019 to help the agency collect data on adverse incidents for cats and dogs using the Seresto collar. EPA asked Bayer to split the registration for cats and dogs, so the agency could better understand and evaluate the risks for each type of pet. They refused, saying that change might have, “an adverse impact on sales” and they also said, “it would be a substantial increase in work.” Mr. Simmons, are you willing to make that change and split the registration for cats and dogs as the EPA requested? Or do you believe it's too much work? Jeffrey Simmons: I am willing to engage with the EPA on anything that the scientific data and the engagement under the regulatory body of the EPA merits the right thing to do. We believe the 80 studies and all of the pharmacovigilance data that we've submitted to them stands that this is a safe product. 3:00:10 Rep. Andrew Clyde (R-GA): I feel obligated to begin by stating the obvious this afternoon. Today's hearing is a colossal waste of time and resources. 3:13:25 Rep. Henry Johnson (D-GA): And the only reason that the public knew about the harm caused by this pesticide is because the Center for Biological Diversity publicly petitioned the EPA to cancel registration for Seresto flea collars. If they had not bought this to light, do you think we would even know of the dangers presented by these collars? Nathan Donley: No, we wouldn't. You know, the investigation that came out in USA Today in 2021 really brought this to the public attention. And if there wasn't that amount of pressure from the public, this would just still be completely unknown. EPA, for the last 10 years, has not done anything to alert consumers to the harms associated with this product or any other pesticide products where there are a very high number of incidents. 3:15:10 Karen McCormack: I think some of the people at EPA are programmed to go along with whatever industry says. It makes life easier for you, you can go home earlier and you can also get promoted easier if you go along with what industry says. It's unfortunate a problem there. And I've seen it over the years and it's very hard to do something about it. 3:15:40 Karen McCormack: Canada's analysis was very scientific. It was not only based on incident data and sales data, it was based on the toxicity of the two pesticides in Seresto. And they looked at the consistency and what happened eventually with the pets that were exposed to Seresto. 3:19:20 Rep. Raja Krishnamoorthi (D-IL): And so because of the tremendous number of pet incidents, the tremendous number of deaths, even when factoring in sales, I sadly have no choice but to recommend that the EPA commence a notice of intent to cancel proceedings and to fully investigate what's going on with the Seresto collar, and I respectfully request Elanco to voluntarily recall these collars at this time, pending this further investigation. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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21 snips
Jul 17, 2022 • 1h 26min

CD255: Pharmacy Benefit Managers (PBMs)

The recently signed gun law, S. 2938: Bipartisan Safer Communities Act, contained a surprise dingleberry postponing a regulation designed to save seniors money on their pharmaceutical drugs by prohibiting kickbacks to an industry few have heard of: Pharmacy Benefit Managers (PBMs). This little-known but extremely powerful industry deserves much of the blame for ever rising prescription drugs costs in the United States. In this episode, Jen gives you the scoop on PBMs and how they make their money at the expense of Americans who are most dependent on medications. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! We’re Not Wrong Berlin Meetup Contact Justin at Background Sources Recommended Congressional Dish Episodes US Healthcare Landscape Jessi Jezewska Stevens. Apr 23, 2020. Bookforum. Tanza Loudenback. Mar 7, 2019. Insider. Chuck Grassley and Ron Wyden. 2019. U.S. Senate Finance Committee. Kaiser Family Foundation. Sara R. Collins and David C. Radley. Dec 7, 2018. The Commonwealth Fund. PBMs What are PBMs? JC Scott. Jun 30, 2022. The Hill. Zach Freed. Jun 22, 2022. American Economic Liberties Project. Adam J. Fein. Jun 22, 2021. Drug Channels. Nov 11, 2021. 46brooklyn. Adam J. Fein. Feb 3, 2019. The Wall Street Journal. How PBMs Make Money National Association of Chain Drug Stores. RxSafe. True North Political Solutions. Oct 25, 2017. Pharmacy Times. ACA “Vertical Integration” Loophole Peter High. Jul 8, 2019. Forbes. Angelica LaVito. Nov 28, 2018. CNBC. David Dayen. Oct 12, 2018. The American Prospect. Jeff Byers. April 12, 2018. Healthcare Dive. Susan Morse. May 10, 2017. Healthcare Finance. Lobbying Open Secrets. The Demise of Independent Pharmacies Christine Blank. Oct 17, 2019. Drug Topics. Paulina Firozi. Aug 23, 2018. The Washington Post. What Is a Formulary? Ana Gascon Ivey. May 19, 2020. GoodRx. Previous Delays in Rebate Regulation Paige Minemyer. Jan 29, 2021. Fierce Healthcare. Paige Minemyer. Jan 12, 2021. Fierce Healthcare. May 2019. Congressional Budget Office. The Gun Law Passage Process Office of the Clerk. May 18, 2022. U.S. House of Representatives. Tampa Bay Times Editorial Board. May 12, 2022. Miami Herald. Annie Karni. Apr 12, 2022. The New York Times. Background on Most Important Provisions Mary Katherine Wildeman. May 26, 2022. CT Insider. Jeffrey Pierre. May 26, 2022. NPR. The Dingleberry Erik Sherman. Jun 30, 2022. Forbes. Molly Rutherford. Jun 28, 2022. The Hill. Marty Schladen. Jun 22, 2022. Iowa Capital Dispatch. Poland Train Station Taylor Popielarz, Maureen McManus and Justin Tasolides. Mar 25, 2022. Spectrum News NY1. The Law and the Regulation U.S. Health and Human Services Department November 30, 2020 Audio Sources November 17, 2015 House Committee on the Judiciary Witnesses: Bradley J. Arthur, R.Ph., Owner, Black Rock Pharmacy David Balto, Law Offices of David A. Balto PLLC Amy Bricker, R.Ph. Vice President of Retail Contracting & Strategy, Express Scripts Natalie A. Pons, Senior Vice President and Assistant General Counsel, CVS Health Clips 53:48 Bradley Arthur: The Big Three PBMs control almost 80% of the entire market and these PBMs have the upper hand both in negotiating the contract with the payer, as well as strongly influencing the actual plan design itself. The PBM industry typically states that they can use their economic power to harness enhanced market efficiencies, but for whom? However, the staggering annual revenues that continue to grow each year of the big three suggests that these efficiencies are going directly to their corporations’ bottom lines. Small community pharmacies like mine are faced on a daily basis with the impact of the PBMs’ disproportionate market power. Community pharmacies routinely must agree to take-it-or-leave-it contracts from the PBMs just to continue to serve our long-standing patients. As if that weren't enough, the PBMs also directly set the reimbursement rates for pharmacies, the very same pharmacies that stand in direct competition of some of these PBM-owned mail-order and specialty pharmacies. Therefore, it comes as no surprise that the PBMs present employer and government payers with carefully tailored suggested plans designs that steer beneficiaries to these PBM-owned entities. January 29, 2019 Senate Committee on Finance Witnesses: Kathy Sego, Mother of a Child with Insulin-Dependent Diabetes Douglas Holtz-Eakin, Ph.D., President, American Action Forum Mark E. Miller, Ph.D., Vice President of Health Care, Laura and John Arnold Foundation Peter B. Bach, MD, MAPP, Director, Memorial Sloan Kettering Center for Health Policy and Outcomes Clips 1:57:30 Sen. John Cornyn (R - TX): Can anybody on the panel explain to me why we have a general prohibition against kickbacks — they call them rebates — under the Social Security Act, but we nevertheless allow it for prescription drug pricing? What's the sound public policy reason for excluding prescription drug pricing from the anti-kickback rule under federal law? Douglas Holtz-Eakin: I can't explain that and won’t pretend to. [laughter] Sen. Cornyn: I thought I was the only one who didn't understand the wisdom of that. Well, it's not a transparent arrangement and it does produce upward pressure on drug prices. And obviously, the negotiations between the PBM and the pharma in terms of what the net cost is, is not transparent, nor is it delivered to the consumer. Is it Dr. Miller? Dr. Bach? Peter Bach: It's delivered to the consumer indirectly through the reduction of the total cost of the benefit, but it is not delivered to the actual consumer using the drug, and that is a disassociation, that is a problem. Because it essentially reverses the structure of insurance. Lowering the total costs are people who use it the least, and raising the costs are people who use it the most, relative to if you allowed the rebate to be used at the point of sale, including all discounts. 1:59:49 Douglas Holtz-Eakin: If we had the negotiation be about the upfront price, so instead of a high list price and a rebate, you just negotiate a lower price, that would be the price that Ms. Sego would pay and insurance companies would look at that and say, okay, she's not paying as much as she used to, we're going to have to make up that money somewhere else and they might raise premiums. That means that people who don't have extreme insulin drug costs would pay a little bit more in a premium every month, and people who have extremely devastating medical conditions and high health care costs would get less costs. That's exactly what insurance is supposed to do. And so the rebate system is more than giving strange incentives on pricing. It's undercutting the purpose of insurance in general. February 26, 2019 Senate Committee on Finance Witnesses: Richard A. Gonzalez, Chairman and Chief Executive Officer, AbbVie Inc. Pascal Soriot, Executive Director and Chief Executive Officer, AstraZeneca Giovanni Caforio, M.D., Chairman of the Board and Chief Executive Officer, Bristol-Myers Squibb Co. Jennifer Taubert, Executive Vice President, Worldwide Chairman, Janssen Pharmaceuticals, Johnson & Johnson Kenneth C. Frazier, Chairman and Chief Executive Officer, Merck & Co., Inc. Albert Bourla, DVM, Ph.D., Chief Executive Office, Pfizer Olivier Brandicourt, M.D., Former Chief Executive Officer, Sanofi Clips 1:22:03 Albert Bourla: Adverse incentives that favor higher cost biologics are keeping biosimilars from reaching patients. In many cases, insurance companies declined to include lower cost biosimilars in their formularies because they would risk losing the rebates from covering higher cost medicines. I can't think of a more concerning example of a broken system and we need to do something about it. 1:33:35 Sen. Chuck Grassley (R - IA): So many of you have voiced support for the recent rebate rule proposed by the administration. Should the administration finalized this rule, will you commit to lowering your drug prices? Richard Gonzalez [CEO, AbbVie]: Mr. Chairman, we are supportive of the rule. We'd like to see it in its final form, obviously, to make a final decision, but we are supportive of taking the discount to the patient at the point of sale. Sen Grassley: Okay. AstraZeneca? **Pascal Soriot [CEO, AstraZeneca]**The same for us Senator, I would go one step further: if the rebates were removed from the commercial sector as well, we will definitely reduce our list prices. Sen Grassley: Okay. And Bristol? Giovanni Caforio [CEO, Bristol-Myers Squibb]: We have the same positions. Sen Grassley: Okay. Johnson and Johnson? Jennifer Taubert [EVP, J&J]: Yes, we're supportive, and that definitely would be my goal. We would just need to see the final legislation, provided that there aren't additional fees that are added into the system to compensate for the rebates. Sen Grassley: Merck? **Kenneth C. Frazier: I would expect that our prices would go down if we change the system. Again, on the commercial side as well as the Medicare side. Sen Grassley: Okay, Pfizer? Albert Bourla [CEO, Pfizer]: It is a very clear intention that we will not keep a single dollar from these rebates. We will try to move every single penny to the patients and we think if this goes also to the commercial plants that will be even better for more patients. Sen Grassley: Okay. Sanofi? Olivier Brandicourt [Former CEO, Sanofi]: Lowering list price has to be linked to better access and affordability at the counter for the patients. 1:35:20 Sen. Ron Wyden (D - OR): Is it correct that your company, and nobody else, sets the starting price for all drugs sold by Pfizer? Yes or no? Albert Bourla: It is a negotiation with PBMs and they are very powerful. Sen. Wyden: But you still get to set the list price? Albert Bourla: Yes, but we set this price and the rebate limit(?). 1:35:40 Sen. Ron Wyden (D - OR): Is it correct, when a hypothetical patient, let's call her Mrs. Jones, goes to pay for her drug at the pharmacy counter, her coinsurance is based on the price of the drug you set? Albert Bourla: It is correct in many cases. Sen. Wyden: Okay. I just want you all to know that the number one reason consumers are getting hammered, is because these list prices, which you have the last word with respect to where they are, are unaffordable. And the high prices are tied to what the consumer pays at the pharmacy counter. And all this other stuff you talk about, the rebates and the discounts and the coupons, all this other stuff is window dressing, all of that. And the fact is on Part D, 40% of the drugs don't even have a rebate. So I want it understood, particularly because I've asked you, Mr. Borla, I think you and others in the industry are stonewalling on the key issue, which is actually lowering list prices. And reducing those list prices are the easiest way for American consumers to pay less at the pharmacy counter. 2:12:45 Sen. Thomas Carper (D-DE): First is eliminating rebates to PBMs. That's the first one, eliminating rebates to PBMs. The second is value based arrangements. And the third is increasing transparency industry-wide on how you set your prices. 2:13:20 Richard Gonzalez: We clearly support providing the discount at the patient level, eliminating rebates essentially. 2:14:10 Pascal Soriot: If the rebates, as I said earlier, were to be removed from Part D and the commercial sector, we would actually reduce our list prices. 2:15:10 Giovanni Caforio: I would say that not only do we support all three elements that you mentioned, but I do believe those three elements together with the continued effort to develop a generic and biosimilar market would mean significant change, and would clearly alleviate the concerns that patients have today. 2:14:44 Jennifer Taubert: We are very supportive of all three elements that you outlined 2:15:52 Kenneth Frazier: We too support all three. 2:15:55 Albert Bourla: All three elements are transformational for our industry, will disrupt it. However, we do agree that these are the three things that need to be done and also I believe that will have significant meaningful results if we do. 2:16:10 Olivier Brandicourt: We support the three Senator, but we want to keep in mind at the end of the chain the patient has to benefit, so if rebates are removed it has to be to the benefit of patients. Sen. Thomas Carper (D-DE): Good, thanks. 2:18:10 Albert Bourla: 50% of the American people are in commercial plans and these rebate rules apply to Medicare. If the rules apply to all, definitely the list price will go down. 2:18:30 Albert Bourla: The list price is not irrelevant, it's very relevant for a lot of people because they have to pay list price during the deductible period. However if the rebate rule is applied, then they become irrelevant because the patients will not be paying the list price at the purchase point. 2:19:10 Sen. John Thune (R-SD): How would manufacturers respond if the rebate rule were finalized for government programs? I mean, what does that what does that mean for the commercial market? Albert Bourla: Senator, as I said before, all these proposals that they're discussing, [undistinguishable], eliminating the rebate rule, are transformational and will disrupt the way we do business. I don't know exactly how the system will evolve, and I really don't favor a bifurcated system. I would like to have a transparent single system across both parts. So we need to see how the whole thing will evolve. 2:25:26 Johnny Isakson (R-GA): Who sets the discount and who sets the rebate? 2:26:20 Richard Gonzalez: We negotiate with payers, so managed care and PBMs— Sen. Johnny Isakson (R-GA): You’re a supplier though, so you have to go negotiate with the PBMs and those people, is that right? Richard Gonzalez: Correct, and they negotiate aggressively. Sen. Isakson: Is that pretty much true with everybody, that they're the major component between the end retail consumer price and the origin of the product? Richard Gonzalez: Yes, Senator. Sen. Isakson: Well, that seems like that's someplace we ought to focus, because that's where the distorted numbers come in. Johnson & Johnson, Janssen, in your testimony, you talked about your average list price of 8.1%, up, but an average net price change of only 4.6%. So while your gross went up 8.6, your net went down 4.6 In the same pricing period. How does that happen? If you're setting the price, how does it not go up on the bottom? Jennifer Taubert: Yeah, and in fact, in 2018, our net price actually declined 8.6%, so even more than that. The intermediaries in the system are very, very effective negotiators— Sen. Isakson: Tell me who the intermediaries are. Jennifer Taubert: Those would be the PBMs and the insurers. Sen. Isakson: …and the insurance companies? Jennifer Taubert: Right, and they set the formularies for patients. Sen. Isakson: And they're not the same. They're two different people? Jennifer Taubert: Yes, correct. 2:40:45 James Lankford (R-OK): All of you have mentioned the rebate issue has been a problem and that insurance companies and PBMs are very effective negotiators. Part of the challenge of this is, health insurance companies pay their PBM based on the quality of their negotiation skills, cutting a price off the list price. And so if a list price is higher and a rebate is higher, that also gives preference to them. So the difficulty is, as you raise list price, and the rebate gets larger, the insurance company gives that preference, making it harder for biosimilars. Am I tracking this correctly? 2:43:00 Albert Bourla: Here in the US, the penetration of biosimilars is much lower than in other places, but it is disproportional to different parts of the US healthcare system. For example, in open systems, systems where the decision maker it is a PBM, the one biosimilar we have has a market share of 5% in the US. In closed systems, in systems like Kaiser, for example, integrated healthcare systems where the one who decides has the whole cost of the healthcare system in its interest, we have 73%. 5% and 73% for the same product. I agree with what Mr. Fraser said that we need to create incentives, but I would add also that we need to break this rebate trap that creates significant disincentives for providers, and the healthcare system, and insurance companies. 3:19:25 Kenneth Frazier: If you went back a few years ago, when we negotiated to get our drugs on formulary, our goal was to have the lowest copay by patients. Today the goal is to pay into the supply chain the biggest rebate, and so that actually puts the patient at a disadvantage since they're the only ones that are paying a portion of the list price. The list price is actually working against the patient. 3:19:50 Sen. Steve Daines (R-MT): Why do we have a system today? Where you all are setting, I'll just say very, very high list prices, which is the starting point for negotiation. Why? Olivier Brandicourt: Senator, we're trying to get formulary position. With those list prices. High list price, high rebates. It's a preferred position. Unfortunately the preferred position doesn't automatically ensure affordability at the end. Kenneth C. Frazier: Senator, If you bring a product to the market with a low list price in this system, you get punished financially and you get no uptake because everyone in the supply chain makes money as a result of a higher list price. April 9, 2019 Senate Committee on Finance Witnesses: Steve Miller, MD, Former Executive Vice President and Chief Clinical Officer, Cigna Corporation Derica Rice, Former Executive Vice President and President, CVS Health and CVS Caremark William Fleming, Pharm.D., Segment President, Healthcare Services, Humana Inc. John Prince, Chief Executive Officer, OptumRx Mike Kolar, JD, Interim President & CEO, Senior Vice President and General Counsel, Prime Therapeutics LLC Clips Sen. Ron Wyden (D - OR): Pharmaceutical Benefit Managers first showed up decades ago, back when prescription drugs were being utilized more extensively. The PBMs told the insurance companies, “we're the ones who know drug pricing, we will handle the negotiations for you.” But there is little evidence that the pharmaceutical benefit managers have actually held down the prices in a meaningful way. In fact, most of the evidence shows just the opposite. Pharmaceutical Benefit Managers actually make more money when they pick a higher price drug over a lower price drug. Colleagues, let's remember that all the way through this discussion, benefit managers make more money when they pick a higher price drug over a lower price drug. The logic on this isn't exactly complicated, graduate-level economics. PBM profits are based on taking their slice of the prescription-drug pie. More expensive drugs means there's a bigger pie. When there's a bigger pie, [there are] bigger slices for the pharmaceutical benefit managers. 50:24 Mike Kolar: Rebates and the role they play have been key areas of focus in the drug cost debate. In our view, rebates are a powerful tool to offset high prices, which are set by pharmaceutical companies, and pharmaceutical companies alone. The fact that rebates are not offered on many of the highest cost drugs, and that studies show no correlation between prices and rebates underscore that rebates are a key to mitigating rather than causing high drug prices. We pass rebates through fully to our plans, and we believe our plans should be able to choose how to apply these rebates in ways that best serve their members and market needs by balancing premiums and cost sharing. 56:05 Sen. Chuck Grassley (R-IA): I'd like to talk about consolidation, including the recent integration of PBMs with insurance companies. Last year I wrote to the Justice Department on the issues, it reported that the three largest PBMs who are before us today now covers 71% of Medicaid, Medicare Part D enrollees and 86% of standalone Drug Plan enrollees. 57:45 Derica Rice: This is a highly competitive space. In addition to the three that you've pointed out here, CMS has noted there are over 60 PBMs across the US. Therefore, the competition, there's many options for the employers that are out there, government entities, as well as unions to choose from given their specific needs. 1:10:35 Sen. Debbie Stabenow (D-MI): So when we look at Express Scripts has 100 million Americans covered, CVS 90 million, OptumRx 65 million, Prime Therapeutics 27 million, Humana 21 million, and yet Americans still pay the highest prices in the world. Even though you are negotiating for millions of people. The VA has its own pharmacy benefit manager service, they negotiate for 9 million veterans, and they pay, on average, 40% less for the same drugs that the rest of the healthcare system pays for. Despite greater volume, you are unable to secure these kinds of low prices. With all due respect, you guys are pretty bad negotiators. Given the fact that the VA can get 40% less. And so I'd like to know from each of you why that's the case. Dr. Miller? Steve Miller [Former EVP and Chief Clinical Officer, Cigna Corporation]: Yes. Part of the equation is giving patients choice. At the VA, they actually limit their formulary more than any of us at this table do. So oftentimes, they'll have one beta blocker, one ace inhibitor. And so if it's going to get to that level of choice, then we could get better prices also. Sen. Stabenow: Let me jump in, in the interest of time. I know you create nationwide drug formularies, you have pre-authorization, you give preferred status to certain medications. So you don't use any of those tools that the VA is using? Because you do. Steve Miller: We definitely use those tools, but we also give people choice. It's crucial for both physicians and patients to have the choice of the products they want to be able to access. Many of our plans want us to have broad formularies and when you have more products, it means you move less market share. Sen. Stabenow: So basically you’re saying a 40% premium gives them more choice. 1:24:30 Sherrod Brown (D-OH): If the administration's rebate rule were finalized as proposed, would you in some way be required to change the way you do business? Mike Kolar: Yes, Senator we would. John Prince: Yes. William Fleming: Yes. Derica Rice: Yes. Steve Miller: Yes. Sen. Brown: Thank you. 1:25:05 Sherrod Brown (D-OH): What percentage of prescriptions that you fill across Part D actually receive a rebate? Roughly what percentage? Mike Kolar: So Senator, approximately 8% of the prescriptions that we cover in Part D are associated with a rebate. Sen. Brown: Okay, Mr. Prince? John Prince: Senator, I don’t know the exact number, I know our overall business is about 7%. Sen. Brown: Okay, thank you. William Fleming: About 7-8%. Derica Rice: Senator, I do not know the exact number but we pass through 100% of all rebates and discounts. Sen. Brown: [Grunt] Steve Miller: 90% of the prescriptions will be generic. Of the 10% that are branded, about two-thirds have rebates. So it's about seven-- Sen. Brown: 7-8% like the others. Okay. To recap, PBMs do not set drug prices. Forcing you to change the way you do business -- as the administration's rule would — will not change that fact. And while the rule might impact a small percentage of drugs and Part D that receive a rebate, it does nothing to lower costs, as your answer suggests, for the other 90% of prescriptions you fill. Most importantly, absolutely nothing in the proposed rule would require Secretary Azar’s former employer or any other pharma company to lower the price of insulin or any other drug. It's important to establish that, so thank you for that. 1:41:40 Catherine Cortez Masto (D-NV): Let me ask you, Dr. Fleming, in your testimony, you say Humana’s analysis of the rebate rule -- and we're talking about the administration's rebate rule now — found that approximately 17% of beneficiaries will see savings at the pharmacy counter as a result of this rule. Can you tell me a little bit more about who these people are? And what kind of conditions do they have? William Fleming: Senator, there will be a number of members who are taking brand drugs for which we get rebates and so it could vary all the way from the common chronic conditions, things like diabetes or hypertension or high cholesterol, all the way over to occasionally, not usually, but occasionally on the specialty drug side. When you think of some medications like treatments for rheumatoid arthritis, multiple sclerosis, places where there's competition. 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Jun 26, 2022 • 1h 25min

CD254: Baby Formula Shortage

After multiple formula-related infant deaths were reported to the FDA in February, samples from Abbott Laboratories' Sturgis, Michigan baby formula production facility tested positive for cronobacter, triggering a recall and a subsequent formula shortage. In this episode, Jen uncovers monopoly and neglect in the baby formula production industry, lack of oversight by the FDA, and the United States' refusal to adopt the World Health Organization's International Code of Marketing of Breast-Milk Substitutes. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Formula Shortage Abbott. Jun 15, 2022. May 26, 2022. U.S. Senate. Center for Food Safety and Applied Nutrition. May 18, 2022. U.S. Food and Drug Administration. Annie Gasparro and Jaewon Kang. May 12, 2022. The Wall Street Journal. U.S. Food and Drug Administration. Feb 2022. Baby Formula Monopoly Matt Stoller. May 13, 2022. BIG by Matt Stoler on Substack. Sam Knight. Apr 23, 2022. Truthout. FDA Failure March 24, 2022. U.S. House of Representatives. Poisoned Baby Food House Committee on Oversight and Reform, Subcommittee on Economic and Consumer Policy Staff. Feb 4, 2021. Operation Fly Formula Brenda Goodman and Deidre McPhillips. Jun 10, 2022. CNN. The White House. May 22, 2022. White House Briefing Room: Statements and Releases. 60 minutes Segment Bill Whitaker. May 22, 2022. 60 Minutes. The WHO Code and Formula Marketing The World Health Organization. Apr 28, 2022. The World Health Organization. Apr 28, 2022. The World Health Organization. La Leche League International. Bonnie Goldstein. Jul 13, 2018. Project on Government Oversight. The World Health Organization. Jan 27, 1981. Fisher-Price Update Katie Porter [@RepKatiePorter]. Jun 15, 2022. Twitter. Laws Audio Sources May 26, 2022 Senate Committee on Health, Education, Labor, and Pensions The committee concluded a hearing to examine the infant formula crisis, focusing on addressing the shortage and getting formula on shelves. Witnesses: Robert M. Califf, Commissioner of Food and Drugs, Food and Drug Administration Clips 37:26 Dr. Robert Califf: Frankly, the inspection results were shocking. Standing water, cracks in key equipment that presented the potential for bacterial contamination to persist, particularly in the presence of moisture, leaks in the roof, a previous citation of inadequate hand washing and current poor foot sanitation, bacteria growing from multiple sides, and many signs of a disappointing lack of attention to the culture of safety in this product that is so essential to the lives of our most precious people. 38:14 Dr. Robert Califf: As soon as we receive positive cronobacter results from environmental samples at the facility that we collected during the inspection, we contacted Abbott to ask the company to issue a voluntary recall. The need to take urgent action to protect the most vulnerable of all of our people -- infants -- presented a dilemma. This was the largest plant of the dominant manufacturer, and it was the sole source of a number of metabolic formulas essential for viability of infants with no substitution possible, because Abbott had no backup plan. We knew that ceasing plant operations would create supply problems, but we had no choice given the unsanitary conditions. 50:50 Sen. Richard Burr (R-NC): Why haven't you waived labeling requirements from trusted manufacturers in countries like the UK, Australia or Canada? Couldn't manufacturers provide temporary labels on imported formula? Cans if the label is printed in a language other than English until US manufacturing is restored? Some countries have higher nutritional requirements. Why can't we provide a waiver for their products to come into the country? Dr. Robert Califf: We've waived many of the requirements that are the ones that make sense, but the directions have to be clear to Americans in language that's understandable so the formula can be mixed correctly. An error in mixing up the formula for example, can lead to a very sick infant not getting the right nutrition. 2:16:18 Dr. Robert Califf: We saw the lack of quality in the system and the lack of accountability for the problems that were there. And so we had to invoke the Justice Department to negotiate a consent decree, which is essentially Abbott saying, “Yes, we had all these problems. Here's exactly what we're going to do to fix them.” For legal reasons, I can't discuss the exact details of the negotiation, but let's just say that it took a little armwrestling to get to the point where the Justice Department got Abbott to sign the consent decree. May 25, 2022 Committee on Energy and Commerce: Subcommittee on Oversight and Investigations Witnesses: Robert M. Califf, Commissioner, Food and Drug Administration Frank Yiannas, Deputy Commissioner, Food Policy and Response, Food and Drug Administration Susan Mayne, Director, Center for Food Safety and Applied Nutrition, Food and Drug Administration Chris Calamari, Senior Vice President of U.S. Nutrition, Abbott Robert Cleveland, Senior Vice President of the Nutrition Business Unit for the US and Europe, Mead Johnson Nutrition Scott Fitz, Vice President of Technical and Production, Gerber Clips 41:55 Robert Califf: Because of the lack of the diversification of this market in the absence of a central hub for integrating supply chains, we concluded early on that getting the Sturgis facility up and running safely was a top priority. But we had no confidence in the integrity of the Abbott quality program at this facility. Accordingly, we initiated proceedings toward a consent decree, which requires Abbott to undertake steps to assure safe production of formula, including hiring an outside expert with reporting to FDA. 43:03 Robert Califf: Despite the overall numbers showing diminished but steady supply, we knew that distribution was an issue. Some areas were experiencing significant shortages, but overall, there was enough formula to go around. About a month ago, the reports of shortages on the shelf proliferated, although there was not a drop in production. This increase in consumption most likely represents heightened concern of parents and caregivers about shortages, leading to an understandable effort to purchase ahead to ensure adequate supply at home. This type of cycle has happened with other products throughout the pandemic, and we realize that the only solution is to have adequate supply to make sure shelves are stocked. 45:57 Robert Califf: Abbott's enormous market share left it with a responsibility for producing safe infant formula that was not met. We will do everything in our power to work with Abbott to make this happen as quickly and as safely possible, but this timing is an Abbott's control. 46:35 Robert Califf: Across the industry we regulate, we are seeing evidence that the just-in-time distribution system, market concentration, and sole-source contracting are leading to shortages. Multiple reports to Congress call for improved supply chain management. Until regulatory agencies have digital access to critical supply chain information and personnel to do the work, we will continue to react to supply chain disruptions rather than intervening to prevent them. 1:01:113 Robert Califf: It’s really important for people to go to the HHS website: hhs.gov/formula. There you'll find the hotline for all the manufacturers and helpful information about where to go. 1:04:12 Robert Califf: You would be surprised to know there's no just-in-time system where all the FDA employees can see what's going on. What we really need is access to the information that the manufacturers have about each of their individual supply chains. They each have their individual supply chains, but there is no national system to make sure the supplies getting where it needs to go. 1:05:11 Rep. Cathy McMorris Rodgers (R-WA): Did FDA not have a data analytics tool to monitor the supply chains of various products, including infant formula? Robert Califf: We requested funding for a tool and because we didn't get the funding, we cobbled it together. It's a start, but it's nowhere near — you know, again, I was at Google for five years. The technology at FDA, and in many federal agencies is outmoded and needs an upfit, there's just no question about. 1:07:33 Susan Mayne: We have been in discussion with infant formula manufacturers throughout COVID, but discussion is not the same thing as data and we do not have the authorities to demand data from the companies to get necessarily all the information that you would want to have to really monitor the supply chains as Dr. Califf indicated. 1:10:30 Robert Califf: But given what we saw, the only way we could have confidence was through a consent decree, where we literally have oversight of every single step. When we met with the CEO yesterday, there were hundreds of steps that they went through that they're having to do, many of which have already been done. So it's only if we have direct oversight over it that I would have confidence, but I do have confidence that we are seeing every single step both physically in-person, and also through following the documentation and the outside expert. 1:10:53 Rep. David B. McKinley (R-WV): How will the passage of last week's FDA Bill increase the production of baby formula? Robert Califf: Production is increasing already — Rep. David McKinley The criticism, that they said that on these various tweets — it was not just one there were several — that said it was unnecessary. So I want to know, how do we increase, how do we get back to production? How to put in $28 million? How would that how's that gonna increase production? Robert Califf: Well, remember, the Abbot plant needs to get up and running, we’ve got to oversee and micro detail to make sure that it's done correctly. And as we bring in supply from other countries, remember, we already have overseas plants that we import from on a regular basis, almost double digits. So as we bring that product in, we’ve got to inspect it, make sure it's of the quality that we expect in America of formula and we need to upgrade our information systems, as I've already said, to make sure that as all this goes on, we can keep track of it and make sure that we're coordinated. 1:44:55 Rep. Kim Schrier (D-WA): Is there any early warning system for products like baby formula? And not just the ingredients but for formula itself or manufacturer would let you know if they're running short or anticipate a shortage? Robert Califf: First of all, let me thank you for being a pediatrician. I sometimes call the Academy of Pediatrics just for the positive vibes that you all exude as a profession. But no, there is not such a warning system. We've repeatedly asked for that authority and have not been granted it. The industry by and large has opposed it. 1:52:21 Susan Mayne: What the data show is, we can't rule in or rule out whether or not those infants, their cronobacter was caused by this plant. The data just simply can't be used to inform it. Rep. John Joyce (R-PA): But the genetic testing you did. It does not match from the plant, correct? Susan Mayne: That is correct. But what we did not have is any sampling done at the same time that the product was manufactured that was consumed by the individuals who got sick, so we didn't have that every director 2:08:57 Rep. Ann Kuster (D-NH): I know that in this part of the country, I'm in New Hampshire, we have milk banks of mother's breast milk. And I'm wondering what is the regulation by the FDA? And can we assure our constituents that breast milk from milk bank is safe and is thoroughly vetted by the FDA? Robert Califf: You're asking some very good questions. I'm gonna refer this to Dr. Mayne who probably would have the best answer. Susan Mayne: Thank you, Congresswoman. So human breast milk is regulated as a food. And so that is reassuring and they have to have proper screening protocols and things like that in place to make sure that the donors that are donating the milk, get that, that's critical for human food safety. So that's how I would respond. Thank you. 2:26:28 Robert Califf: You would think that a critical industry like this would have resilience plans, redundancy, but we don't even have legal authority right now to require that the firms have a plan for potential failures and resilience. That’s something we've asked Congress for every year for a while, and we're asking for it again. So I hope that it happens this time. I'd also add that this is not unique to this industry. We are seeing this across the entire device and medical supply industry with frequent failures as exemplified by the 60 minutes show and the contrast medium problem that I talked about. We have gone to a just-in-time, large single source contracts that lead to lack of diversification in the industry and the industry has fought us tooth and nail on requiring that there be insight into their supply chains, so that the sum of all of the industries leads to the the avoidance of preemption. We'd like to be able to stress test and prevent these things from happening rather than waiting until they happen, and then scrambling. 2:58:58 Susan Mayne: What we've seen is, first the strain of the COVID 19 pandemic, then the strain of the recall, and now we've got the Russia-Ukraine conflict. And one of the things that we know is the Ukraine region is one of the world's biggest exporters of products like sunflower oil. Sunflower oil is used as an ingredient in many food products, including infant formula. And so we have been working with the manufacturers should they be unable to maintain their supply of sunflower oil, what they would replace it with and make sure that that would meet the nutritional requirements for infant formula. 3:26:28 Chris Calamari: We plan to start production at Sturgis the first week of June. We will begin with the production of EleCare, before turning to the production of other formulas and Similac. From restart, we estimate that it will take six to eight weeks before product is available on shelves. 4:28:51 Rep. Paul Tonko (D-NY): Your testimony also mentions global supply chain challenges as a factor the company has had to contend with. What, if any, steps has Gerber taken to maintain its production and distribution supply? Scott Fitz: Thank you for the question. Certainly, our industry is not immune to the global supply chain challenges brought on by the pandemic. We struggled with materials supply issues, intermittent materials supply issues, whether it be ingredients or packaging components, we struggled struggled with the material quality issues related to the pandemic, we've had transportation and logistics issues, just getting trucks and truck drivers available to move the products and supplies that we need. And we've had COVID related labor challenges and higher turnover than normal are all things that have impacted us. Through the course of the pandemic though we've we've resolved these on an ongoing basis, one at a time as they've come up. We are putting trying to put in more robust business continuity plans in place for critical components and ones that we know we will have challenges with in the future. 4:30:50 Rep. Paul Tonko (D-NY): Did you not think the FDA should be notified or at least aware of your struggle? Scott Fitz: Should FDA be aware of our struggle? Rep. Tonko: Yeah, should you have shared those concerns for supply chain? Scott Fitz: If it could help, we would certainly be willing to do that. Yes. Rep. Tonko: What should you have told us during the last year? Scott Fitz: Well, as I testified, the issues that have come up for us, we've been able to resolve. Through the last six months our in-stock rates have averaged 86%. 4:35:55 Chris Calamari: On the horizon, we see in the manufacture of infant formula agricultural oils are absolutely essential, paper is absolutely essential, the cost of fuel to supply and distribute the product is essential. So I would call out those key elements ranging from agricultural oils to the cost to deliver the product would be the biggest areas of focus. 4:41:42 Robert Cleveland: We reached out and spoke to the USDA almost immediately seeking flexibility, for example in the size format. And while that sounds small, it's very significant because what that means is the WIC consumer doesn't have to look for one particular size of product at the shelf. They can find any size of the shelf to fulfill their their benefits with and that's allowed us to continue production and step up to meet the requirements of those consumers. We've since worked with the USDA to find a number of other ways to flexibly administer the program, because really, the focus for the WIC consumer is the same as the others, making sure she has safe access to formula and doesn't have to compete with non-WIC consumers to get it. So the more sizes, the more formats, the more manufacturers that the program can support, the more likely she is to have her needs met. 4:47:35 Rep. Kim Schrier (D-WA): The baby formula industry in our country is really unique in that about 90% of the product is made right here in the United States. And the vast majority is made by your three companies [Abbott, Gerber, and Mead Johnson]. And so it should be no surprise that when something goes wrong, like what happened in Sturgis, it really rocks the whole industry and the facility in Sturgis is responsible for 40% of Abbott's formula on the market and makes up about 20% of the total formula on the market in the US, and that is really significant, especially when this year Similac has the contract with WIC. 5:10:40 Rep. Buddy Carter (R-GA): Okay, the supply chain issues, is that because some of the ingredients were coming from other countries? Chris Calamari: Representative, yes, so global supply chains are such that we have ingredients coming from global sources and that is the nature of our supply chain. 5:19:29 Rep. Diana DeGette (D-CO): Let's say my daughter, who has a six-week-old baby, called me up and said, “I need to get some formula for my baby. And my store shelves are bare.” What can we tell them between now and all of the emergency measures we put into place to start putting formula on the shelves? Who should they call? Where can they go to try to get some of this limited product right now? What's the practical suggestion? Robert Cleveland: It's very unfortunate that you have to answer that question or ask that question, but let me do my best to answer it. I think the shelves — the reality is they don't have anywhere near the product that they do. So one of the things I've often said during this crisis is it takes a village to raise a child. In this case, sometimes it's taking a village to find infant formula. So the first thing to do is work with your network of family and friends, and as they go to the stores, look for the product that's there. And I've seen many mothers and grandmothers and fathers and cousins doing this on the shelf. You can call our Consumer Response Center. Now to be fair, those folks are doing a phenomenal job of fielding waves and waves of calls. But we will help you if you call. That's one other resource. The physician's office is another. Sometimes they do have the samples that are required, and they can help transition between finding product on the shelf. And then I would be sure to look online as well as in-person at the store and be open to other formats. Many mothers and fathers have a particular type of format they like. You may need to be more flexible in the format that you use. But all infant formula regulated by the FDA is safe for your infant, whether it's a liquid or a powder or what size it's in. And so I would say shop widely. See your doctor or enroll your family friends, give us a call if you need to, and be flexible. May 25, 2022 Committee on Appropriations: Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Witnesses: Ginger Carney, Director of Clinical Nutrition, St. Jude Children’s Research Hospital Sarah Chamberlin, Executive Director, National PKU News Michael Gay, Owner and Manager, Food Fresh Brian Ronholm, Director of Food Policy, Consumer Reports Linkedin Clips 32:29 Michael Gay: WIC’s rigid rules have made it difficult for the program to be responsive to critical shortages throughout the pandemic and now during the formula crisis. Substitutions may be easily available when situations like this arise. The emergency waivers instituted by the USDA during the pandemic have provided flexibility in some states, but those waivers were only available because of the pandemic. To prevent this issue from happening in the future, Congress should allow WIC vendors operating during severe supply shortages, disasters or public health emergencies to automatically substitute limited WIC approved products impacted by supply chain disruptions. The USDA should direct states to include product substitutions for WIC in their emergency preparedness plan. These changes would have allowed families to immediately switch to another formula in states with shortages allowing for smooth continuation of feeding infants. 33:27 Michael Gay: Secondly, there's a significant need for USDA to examine the long term effects of cost containment, competitiveness and peer grouping formulas for WIC vendors. States operate a peer group system to monitor vendor prices and determine reimbursements are cost competitive. These cost containment measures have led to reduced retail embursement and reduced retailer participation in the program, leading to fewer locations for families to access formula. 33:55 Michael Gay: WIC infant formula cost containment measures have led to extreme consolidation in the formula marketplace, leaving it highly vulnerable to supply disruptions like we are experiencing now. These contracting policies must be reviewed to ensure future food security of the nation's babies and families. 41:50 Brian Ronholm: The evidence suggests that the agency was too slow to act, failed to take this issue seriously, and was not forthcoming with information to parents and caregivers. The infant formula crisis exposed a greater structure and culture problem that has long existed FDA. This was merely one symptom of the overall problem, and it is clear that confidence in the food program at the FDA is eroding. A big reason for this is the food program has second class status within FDA, and it's resulted in serious problems. The FDA also lacks a single, full-time, fully empowered expert leader of all aspects of the food program. As you know, in recent decades, most FDA commissioners have been medical specialists who naturally focus on the programs impacting medical products. This is certainly warranted considering the impact these programs have on public health. And the pandemic is a perfect example of this. However, this usually results in intense competition for the commissioner’s time and support and focus on the food program is typically what has suffered under this dynamic. It has become impossible for an FDA commissioner to possess the bandwidth to provide leadership and accountability to a set of offices that regulates 80% of our food supply. 51:45 Ginger Carney: I would want to warn parents not to make homemade formulas — the American Academy of Pediatrics warns against that — they should not dilute the formula, as both of these situations can lead to disastrous results and lead possibly to hospital admissions. 56:40 Brian Ronholm: Splitting out the food safety functions of the agency as it exists now and creating separate agencies while still remaining under the HHS umbrella would be an effective approach that would get to the issues that I think everyone has become aware of during this crisis. 59:32 Rep. Rosa DeLauro (D-CT): We now have 15 agencies at the federal level who deal with some form of food safety, the principal ones are USDA and FDA. It should be one single agency! 1:06:30 Michael Gay: In a rural area such as ours, probably 85-90% of my formula is WIC formula, which is just down to one type of formula. So even like today, for example, or my truck Monday, I got about 20 cases of Gerber formula in a different variety, but that's not approved on what and the Georgia WIC office just approved some substitutions for formulas that were, you know, prescribed by the doctor with the contract formula. So therein lies the problem is there's no easy way to substitute that for the customer. 1:23:29 Brian Ronholm: Four companies that control 90% of the market and only three of them actually bid on WIC rebate contracts. Abbott is by far the largest one and I believe they have contracts in 30 or 31 states, I think it was the latest figure. So when those contracts come up, these companies submit based on their ability to meet the demand in a particular state, and Abbott is usually the only one that's big enough to do that. We mentioned that they have a large part of the market, I think when it comes to the WIC market, they have approximately 55 to 60% of the WIC market. So that's a significant size of the market that it really needs to be examined so when situations like this hit, how does it impact that particular….And it's obviously going to have a bigger impact because these companies use the WIC market to get into the overall non-WIC market to even increase the share of their market, so that creates further shortage problems. 1:40:35 Ginger Carney: One thing that we really haven't talked about is the WHO code for marketing breast milk substitutes. And that's what these formulas are, they’re breast milk substitutes. So if we look at the WHO code in other countries, other developed countries are abiding by the WHO code and this gives guidelines for how companies can market their infant formulas in a safe way. So maybe we should go back to that and think about what is it about the WHO code that would benefit all of our families in the country so that they are assured when they do have to reach for infant formula when breastfeeding cannot be an option or will not be an option? What are the things that are marketed directly to our families that tell them about the formula? 1:44:20 Rep. Debbie Wasserman Schultz (D-FL): Half of all US formula consumption goes through the WIC program, which provides free infant formula as we've been talking about today, where states negotiate bulk discounts in exchange for market exclusivity. Now, I'll take you back to 1989 when Republican President George Bush enacted legislation requiring all state WIC programs to use competitive bidding for the purchase of infant formula. In practice, this means that the state of Florida for example is required to use a single supplier for the entire state supply of WIC baby formula. The competitive bidding process has yielded $1.3 billion to $2 billion a year in savings and allowing WIC to serve about 2 million more participants annually because of the discounts. However, when there's a supply shock caused by one of the four market participants, like what happened with Abbott in this case, it creates a serious risk to infant health across the country. 1:48:00 Rep. Debbie Wasserman Schultz (D-FL): We know that in Europe, they consistently produce a baby formula surplus. But there are rigid labeling and nutritional requirements for formula containers here in the US that the FDA requires and they prohibit the sale of many European-made products, even though the formulas themselves meet FDA nutritional and purity standards. So what sort of policy changes would you like to see undertaken to ease restrictions on baby formula imports, while still ensuring that the product meets our safety standards? Brian Ronholm: Yeah, I think it's critical that we maintain those safety standards that FDA has set on infant formula, that's absolutely critical. There's a comfort level with consumers when they're able to purchase something that they know is an FDA inspected facility overseas. But to your point, sometimes these regulations, these really strict regulations are thinly disguised trade protection measures. And so you know, that's certainly an issue that we'd have to examine carefully to make sure that we can have that access. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Jun 6, 2022 • 1h 45min

CD253: Escalation of War

Since the Russian invasion of Ukraine began, Congress has signed four laws that send enormous amounts of money and weapons to Ukraine, attempting to punish Russia for President Putin’s invasion. In this episode, we examine these laws to find out where our money will actually go and attempt to understand the shifting goals of the Biden administration. The big picture, as it’s being explained to Congress, differs from what we’re being sold. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Content Ukraine and Russia Syria World Trade System Russian Blockade Shane Harris. May 24, 2022. The Washington Post. NATO Expansion Jim Garamone. Jun 1, 2022. U.S. Department of Defense News. Matthew Lee. May 27, 2022. AP News. Ted Kemp. May 19, 2022. CNBC. U.S. Involvement in Ukraine Helene Cooper, Eric Schmitt and Julian E. Barnes. May 5, 2022. The New York Times. Julian E. Barnes, Helene Cooper and Eric Schmitt. May 4, 2022. The New York Times. Private Security Contractors Christopher Caldwell. May 31, 2022. The New York Times. Joaquin Sapien and Joshua Kaplan. May 27, 2022. ProPublica. H.R. 7691 Background How It Passed Glenn Greenwald. May 13, 2022. Glenn Greenwald on Substack. Catie Edmondson and Emily Cochrane. May 10, 2022. The New York Times. Republican Holdouts Glenn Greenwald and Anthony Tobin. May 24, 2022. Glenn Greenwald on Substack. Amy Cheng and Eugene Scott. May 13, 2022. The Washington Post. Morgan Watkins. May 13, 2022. USA Today. Stephen Semler. May 26, 2022. Jacobin. Biden Signs in South Korea Kate Sullivan. May 20, 2022. CNN. How Much Money, and Where Will It Go? Stephen Semler. May 23, 2022. Speaking Security on Substack. May 11 2022. Congressional Budget Office. Christina Arabia, Andrew Bowen, and Cory Welt. Updated Apr 29, 2022. Congressional Research Service. Legal Information Institute, Cornell School of Law. Representatives’ Raytheon and Lockheed Martin Stocks Kimberly Leonard. May 19, 2022. Insider. Kimberly Leonard. Mar 21, 2022. Insider. Marjorie Taylor Green [@RepMTG]. Feb 24, 2022. Twitter. GovTrack. “Rules Based Order” Anthony Dworkin. Sep 8, 2020. *The World Trade Organization Inequality.org Apr 23, 2007. NPR. Crimea Kenneth Rapoza. Mar 20, 2015. Forbes. March 16, 2014. BBC. Shifting Strategies Economic War Larry Elliott. Jun 2, 2022. The Guardian. Nigel Gould-Davies. May 12, 2022. The New York Times. Weapons Escalation Jake Johnson. Jun 1, 2022. Common Dreams. C. Todd Lopez. Jun 1, 2022. U.S. Department of Defense News. Greg Norman. Jun 1, 2022. Fox News. Christian Esch et al. May 30, 2022. Spiegel International. Alastair Gale. May 24, 2022. The Wall Street Journal. Mike Stone. Mar 11, 2022. Reuters. Secretary Austin and the Pentagon Jim Garamone. May 20, 2022. U.S. Department of Defense News. Natasha Bertrand et al. Apr 26, 2022. CNN. David Sanger. Apr 25, 2022. The New York Times. Mike Stone. Apr 12, 2022. Reuters. Glenn Greenwald. Dec 8, 2020. Glenn Greenwald on Substack. Democrats Still All In Marc Santora. May 1, 2022. The New York Times. RFE/RL's Ukrainian Service. May 1, 2022. Radio Free Europe/Radio Liberty. Mar 26, 2022. Sky News. The Laws Passed by Voice Vote in the Senate (amended the original House bill) (on original version) (final version) Audio Sources May 23, 2022 Clips Sen. Joe Manchin (D-WV): Speaking about Ukraine, first what Putin, Putin’s war on Ukraine and Ukraine's determination, resolving the sacrifices they've made for the cause of freedom has united the whole world, that it's united, US Senate and Congress, I think like nothing I've seen in my lifetime. I think we're totally committed to supporting Ukraine, in every way possible, as long as we have the rest of NATO and the free world helping. I think we're all in this together. And I am totally committed as one person to seeing Ukraine to the end with a win, not basically resolving in some type of a treaty. I don't think that is where we are and where we should be. Reporter: Can I just follow up and ask you what you mean by a win for Ukraine? ** Sen. Joe Manchin:** I mean, basically moving Putin back to Russia and hopefully getting rid of Putin. May 19, 2022 Committee on Foreign Affairs, Subcommittee on Asia, the Pacific, Central Asia, and Nonproliferation Witnesses: Charles Edel, Ph.D., Australia Chair and Senior Adviser, Center for Strategic and International Studies Bonny Lin, Ph.D., Director, China Power Project, Center for Strategic and International Studies Tanvi Madan, Ph.D.Director, The India Project, Brookings Institution Dan Blumenthal, Ph.D., Senior Fellow and Director of Asian Studies, American Enterprise Institute Clips 6:57 Tanvi Madan: One implication that is already evident, most visibly in Sri Lanka, is the adverse economic impact. The rise in commodity prices in particular has led to fiscal food and energy security concerns and these, in turn, could have political implications and could create a strategic vacuum. 7:15 Tanvi Madan: A separate and longer term economic impact of the crisis could be renewed goals, perhaps especially in India, for self reliance and building resilience not just against Chinese pressure, but also against Western sanctions. 7:28 Tanvi Madan: The second potential implication of the Russia-Ukraine war could be that Beijing might seek to take advantage in the Indo-Pacific while the world's focus is on Europe, between the Taiwan or the East or South China Sea contingencies. The contingency that would have the most direct impact in South Asia would be further action by the PLA at the China-India boundary, or at the Bhutan-China boundary that could draw in India. This potential for Sino-Indian crisis escalation has indeed shaped Delhi's response to the Russia-Ukraine war. Despite its recent diversification efforts, the Indian military continues to be dependent, if not over dependent, on Russia for supplies and spare parts for crucial frontline equipment. India has also been concerned about moving Moscow away from neutrality towards taking China's side. Nonetheless, there is simultaneously concern that Russia's war with Ukraine might, in any case, make Moscow more beholden to Beijing and also less able to supply India, and that will have implications for India's military readiness. 10:10 Tanvi Madan: The fourth implication in South Asia could flow from the war's effect on the Russia-China relationship flows. The Sino-Russian ties in recent years have benefited Pakistan. However, they have been of great concern to India. If China-Russia relations deepened further, it could lead to increased Indian concern about Russian reliability. And a Dheli that is concerned about Moscow's ability and willingness to supply India militarily or supported in international forums will seek alternative partners and suppliers a potential opportunity for the US as well as its allies and partners. 18:15 Bonny Lin: China has shifted its position on the Ukraine conflict to be less fully pro Russia. Xi Jinping has expressed that he is deeply grieved by the outbreak of war. China has engaged in diplomacy, called for a ceasefire, proposed a six point humanitarian initiative, and provided humanitarian aid to Ukraine. China's position on Ukraine, however, is far from neutral. China has not condemned Russia or called its aggression an evasion. Xi has yet to speak to President Zelenskyy. There is no evidence that China has sought to pressure Russia in any way or form. China has amplified Russian disinformation and pushed back against Western sanctions. To date, Beijing has not provided direct military support to Russia and has not engaged in systemic efforts to help Russia evade sanctions. However, China's ambassador to Russia has encouraged Chinese companies to quote "fill the void in the Russian market." 19:14 Bonny Lin: The Ukraine crisis has reinforced China's view that US military expansion could provoke conflict in the Indo-Pacific. Chinese interlocutors have voiced concern that the United States and NATO are fighting Russia today, but might fight China next. China views NATO expansion as one of the key causes of the Korean conflict and sees parallels between NATO activities in Europe and US efforts in the Indo-Pacific. Beijing is worried that increasing US and ally support for Taiwan and other regional allies and partners elevates the risk of US-China military confrontation. This pessimistic assessment is why Beijing will continue to stand by Russia as a close strategic partner. 19:56 Bonny Lin: The Ukraine crisis has reinforced and strengthened China's desire to be more self reliant. China is investing more to ensure the security of food, energy, and raw materials. Beijing is also seeking more resilient industrial supply chains, as well as PRC-led systems, including alternatives to Swift. At the same time, Beijing is likely to further cultivate dependencies on China, such that any potential Western led sanctions on China or international-community-led sanctions on China in the future will be painful to the West and difficult to sustain. 21:15 Bonny Lin: China has observed that Russia put its nuclear and strategic forces on high alert and NATO did not send conventional forces to Ukraine. This is leading China to question its nuclear policy and posture. 21:57 Bonny Lin: As Beijing watches the Western and particularly G7-led unity among advanced democracies, it is also seeing that a number of countries in the developing world are not joining in on the sanctions. As a result, Beijing has tried to increase its influence and in many ways building on Russian influence in developing regions. And Beijing is likely to try to get all that influence moving forward. 24:24 Dan Blumenthal: China took the opportunity of Russia's invasion on February 4 to lay out a document that criticizes, very specifically, almost all aspects of United States global policy. Very specifically, including Oculus for NATO enlargement to Oculus to the Indo Pacific strategy. It got Russia to sign up to Xi Jinping's theory that we're in a new era of geopolitics that will replace US leadership, that US leadership is faulty and it's dividing the world into blocks such as NATO, that NATO expansion is the problem, that Indo-Pacific strategy is the same thing as NATO expansion. 25:45 Dan Blumenthal: We should take very seriously what they say, particularly in Chinese, and what they're saying is very clearly pro-Russia and very clear, specific, searing critiques of the US-led world order. 26:47 Dan Blumenthal: And frankly, while the West is unified, and the US and the West and some of our Asian allies are unified, most of the rest of the world is not with us on this issue of China and Russia being these authoritarian, revisionist great powers, and that's a real problem. May 18, 2022 House Committee on Foreign Affairs: Subcommittee on the Middle East, North Africa, and Global Counterterrorism Witnesses: Dr. Hanna Notte, Senior Research Associate, Vienna Center for Disarmament and Non-Proliferation Dr. Frederic Wehrey, Senior Fellow, Carnegie Endowment for International Peace Caitlin Welsh, Director of the Global Food Security Program, Center for Strategic and International Studies Grant Rumley, Senior Fellow, The Washington Institute for Near East Policy Clips 12:55 Hanna Notte: First, Moscow's military presence in Syria has given it a buffer zone on its southern flank to counter perceived threats from within the region, but also to deter NATO outside the European theater. And second, Russia has turned to the region to diversify its economic relations with a focus on arms sales, civilian nuclear exports and wheat supplies. And in building influence, Russia has largely followed what I call a low cost high disruption approach, also using hybrid tactics such as private military companies and disinformation. Now, these Russian interests in the region will not fundamentally change with the invasion of Ukraine. Today, Russia's regional diplomacy remains highly active, aimed at offsetting the impact of Western sanctions and demonstrating that Moscow is not isolated internationally. 14:09 Hanna Notte: Starting with arms control and Non-Proliferation, though Moscow seemed intent on spoiling negotiations to restore the JCPOA in early March. It subsequently dropped demands for written guarantees that its cooperation with Iran would not be hindered by sanctions imposed over Ukraine. But still, I think the geopolitical situation might make Moscow less willing to help finalize a nuclear deal. As in the past, Russia is also unlikely to support any US efforts to curb Iran's use of missiles and proxies in the region, because essentially, Iran's regional strategy pins down us resources while elevating Russia as a regional mediator, which serves Russian interests well. 15:17 Hanna Notte: Just a few words on Syria. Security Council resolution 2585 on the provision of humanitarian aid to northwest Syria is up for renewal in July. Now, Rationally speaking, the Kremlin should cooperate to avoid a worsening of serious food crisis, especially if an end game in Ukraine remains out of reach. But considering the current level of tensions between Russia and the West, I think the United States should be prepared for a Russian Security Council veto regardless, alongside continued Russian stalling on the Syrian constitutional committee. Moscow has no serious interest in seeing the committee advance. It will instead try to foster a Gulf Arab counterweight to Iran in Syria through normalization, especially for the contingency that Russia may need to scale back its own presence in Syria due to Ukraine. 16:14 Hanna Notte: First, unfortunately I think there's a widespread perception that the Ukraine war is not their war, that it's a Great Power NATO-Russia war, partially fueled by NATO and US actions visa vis Russia. 16:27 Hanna Notte: Second, there are accusations of Western double standards. The military support to Kyiv, the reception of Ukrainian refugees, these are rightly or wrongly viewed as proof that the West cares significantly more about conflict in Europe's neighborhood than those in the Middle East. 16:42 Hanna Notte: Third, regional elites worry about US conventional security guarantees. They fear that the threats posed by Russia and China will accelerate a decline in US power in the Middle East. And they also fear that the US will have limited bandwidth to confront Iran's missile and proxy activities. And with those fears, they feel they cannot afford to put all their eggs into the US basket. 17:07 Hanna Notte: And then finally, each regional state has very distinct business and security interests with Russia. As a result, and I'll end here, I think us opportunities to get regional states to turn against Russia are circumscribed. loosening these ties that states have been building with Russia will require a heavy lift. 18:57 Frederic Wehrey: This engagement is largely opportunistic and ad hoc. It seizes on instability and power vacuums and exploits the insecurities of US partners in the region about the reliability of US support, and their displeasure with the conditionality that the US sometimes attaches to its arms sales. Russian arms deliveries, in contrast, are faster and free from restrictions related to human rights. But Russia cannot provide the security guarantees that many Arab states have depended on from the United States. 19:29 Frederic Wehrey: Now, in the wake of its invasion of Ukraine, Russia is trying to reap dividends from its investment in the region, call in favors, and capitalize on local ambivalence and hostility to the United States, both from states and from Arab publics. America's Arab security partners have differed on joining the Western condemnation of Russian aggression, and some of refuse to join efforts to isolate Russia economically. 20:31 Frederic Wehrey: Russia's disastrous war in Ukraine is tarnishing its reputation as an arms supplier in the Middle East. Russian weapons have been shown to be flawed in combat and often fatally. So, Battlefield expenditures and attrition have whittled away Russia's inventory, especially precision munitions, and sanctions have eroded its defense industrial base, especially electronic components. As a result, Russia won't be able to fulfill its existing commitments, and potential buyers will be increasingly dissuaded from turning to Russia. This shortfall could be modestly exploited by China, which possesses large quantities of Russian made arms and spare parts, which you could use to keep existing inventories in the region up and running. It could also intensify its efforts to sell its own advanced weaponry like drones. 23:50 Caitlin Welsh: The war has reduced supplies and increased prices of foods exported from Ukraine and Russia, namely wheat, maize and sunflower oil, driven up demand for substitute products and reduced fertilizer exports from the Black Sea. Today's high cost of energy puts further pressure on food and fertilizer prices. Most vulnerable to the impact of these price spikes are countries for whom wheat is a major source of calories that rely on imports to meet their food security needs, and that source a significant proportion of their imports from Ukraine and Russia. 24:38 Caitlin Welsh: Egypt is the world's largest importer of wheat, sourcing over 70% of its wheat from the Black Sea. 25:42 Caitlin Welsh: The Russian Ukraine war is limiting access to wheat for Lebanon, already in one of the worst economic crises in the world. Lebanon has not recorded economic growth since 2017 and food price inflation inflation reached 400% in December 2021. Lebanon procures approximately 75% of its wheat from Russia and Ukraine. 28:48 Grant Rumley: Russia is one of the few countries in the world to maintain a relatively positive diplomatic standing with nearly every country in the Middle East. It does so through a combination of an active military presence, high level diplomatic engagement, and a concerted effort to position itself as a viable source of arms, should countries seek non-US material. 29:08 Grant Rumley: Russia's military presence in the region is well documented by Russian MOD statements. Russia has deployed over 60,000 troops to Syria since intervening in 2015. From its two bases in Syria, Hmeimim and Tartous, Russia is able to project power into the eastern Mediterranean, influence the course of the Syrian civil war, and intervene in countries like Libya. 29:47 Grant Rumley: Russia's invasion of Ukraine, however, threatens Russia standing in the region. Already reports indicate Russia has begun withdrawing some troops and mercenaries from the region to support its invasion of Ukraine. While we can expect these reports to continue if the war continues to go poorly for Russia, I'm skeptical of a full Russian withdrawal, and instead expect Russia to continue to consolidate its forces until it's left with a skeleton presence at Hmeimim and Tartous, its most strategic assets in the region. 30:26 Grant Rumley: On arms sales, the Russian defense industry, which has struggled to produce key platforms following sanctions initially placed after its 2014 invasion of Ukraine, will likely have to prioritize replenishing the Russian military over exporting. Further, customers of Russian arms may struggle with the resources to maintain and sustain the material in their inventory. Still, so long as Russia is able to make platforms, there will likely always be potential customers of Russian arms. 41:25 Grant Rumley: I definitely think customers of Russian arms are going to have several hurdles going forward, not only with simply maintaining and sustaining what they've already purchased, but in some of the basic logistics, even the payment process. Russian bank complained last month that it wasn't able to process close to a billion dollars in payments from India and Egypt over arms sales. I think countries that purchase Russian arms will also now have to consider the potential that they may incur secondary sanctions, in addition to running afoul of CAATSA . I think from from our standpoint, there are many ways that we can amend our security cooperation approach. The Middle East, I think is a key theater for the future of great power competition, not only have we been competing with Russia in terms of arms sales there, but China increasingly has sold armed drones to the region. They've sold it to traditional partners, Jordan, Saudi Arabia, Egypt, and the UAE. And what they're doing is is oftentimes what we're not willing to do, our partners in the region seek co-production, they seek technology sharing. China and Russia are willing to work together to build these advanced platforms, Russia and the UAE inked an agreement several years ago to produce a fifth generation fighter. Nothing's come of that yet. China and Saudi Arabia, however, signed an agreement a couple of months ago to jointly produce armed drones in Saudi Arabia. And so I think the US may want to think creatively in terms of both what we sell, how we sell it, and what we're doing to make this more of a relationship and something beyond a strict transaction. 43:39 Grant Rumley: Their presence in Syria has evolved from a modest airstrip in 2015, to a base at Hmeimim that by open source reporting can serve as a logistics hub, a medical hub, it has the runways to host Russia's most advanced bombers. There was reports before Ukraine that Russia was deploying two 22 bombers there and hypersonic missiles. Their facility at Tartous, likewise. Their ability to stage naval assets there has expanded to they can now stage up to 11 ships there. So it has grown from from a rather modest beginning to something much more challenging from a US standpoint. In terms of what we can we can do, I think we can continue to support Ukraine and the defense of Ukraine, and the longer that Russia is bogged down in Ukraine, the harder it will be for Russia's military to extend and maintain its presence in the Middle East. 1:01:45 Grant Rumley: I think the US has several partners in the middle of major Russian arms purchases that we can, like Turkey and the S 400, that has requested the F 16, or Egypt and Sukhoi Su-35, that has requested the F 15. I'm not saying we have to make a deal right now for that, but I think it's clear that these countries are going to have gaps in their capabilities where they had planned on having Russian platforms to complement, and we can work with our partners and work with our own defense industry and see if there's ways in which we can provide off ramps for them to gradually disinvest these Russian platforms. 1:03:00 Frederic Wehrey: When countries in the in the region buy US arms, they believe they're buying much more than the capability, the hardware, that they're purchasing an insurance policy. I think especially for states in the Gulf, there's a fundamental sense of insecurity. These are states that face Iran, but they're also autocrats. They're insecure because of their political systems. They face dissent from within. We saw that with Egypt. So they're purchasing a whole stream of US assurances -- they believe they are. 1:06:00 Grant Rumley: The issue of of co-production is one means to address a common complaint, which is buying from America takes too long. That its too complicated, that if we get in line to buy something from the US, we're going to have to wait years to get it. A good example is the F 16. There are over 20 countries in the world that fly the F 16. We currently -- Lockheed Martin builds it out of one facility. That facility, if you get in line today, you're probably not getting the F 16 for five years from when you sign on the dotted line for it. In the 70s and 80s, we co-produced the F 16 with three other European countries and we were able to get them off the line faster. The initial order at those facilities was for 1000 F 16s. The initial order for the F 16 plant in South Carolina was for 90 F 16s for Taiwan and Morocco. And so from an industry standpoint, it's a question of scale. And so they're not able to ramp up the production because while the demand may get closer to 1000 over time, it's at 128. Last I checked, it's not there yet. And so I think we can use foreign military financing, longer security cooperation planning, working with our partners on multi-year acquisition timetables to then also communicate and send a signal to the defense industry that these are orders for upgrades, for new kits that are going to come down the road. You can start to plan around that and potentially address some of these production lags. 1:17:52 Grant Rumley: China has a lot of legacy Russian platforms, and will likely be a leading candidate to transfer some of these platforms to countries that had purchased Russian arms in the past and may be seeking maintenance and sustainment for them. I think China's already active in the Middle East, it's already flooding the market with armed drones. It's already looking to market other platforms as well. It's sold air defense systems to Serbia. It's looking to advance its arm sales. And so if if we aren't going to be the supplier, China is going to step in. 1:18:57 Caitlin Welsh: USDA has projected that 35% of the current wheat crop from Ukraine will not be harvested this year. So their exports are curtailed, at the same time Russia's exports are continuing. Russia has been exempted. Russia's agricultural exports and fertilizer has been exempted from sanctions for the United States, EU and other countries. So Russia continues to export. In fact, USDA is estimating that Russia's exports are increasing at this time. And I'm also seeing open source reporting of Russia stealing grain from Ukraine, relabeling it, and exporting it at a premium to countries in the Middle East and North Africa. May 12, 2022 NBC News Clips Sen. Rand Paul (R-KY): My oath of office is to the US Constitution, not to any foreign nation. And no matter how sympathetic the cause, my oath of office is to the national security of the United States of America. We cannot save Ukraine by dooming the US economy. This bill under consideration would spend $40 billion. This is the second spending bill for Ukraine in two months. And this bill is three times larger than the first. Our military aid to Ukraine is nothing new, though. Since 2014, the United States has provided more than $6 billion dollars in security assistance to Ukraine, in addition to the $14 billion Congress authorized just a month ago. If this bill passes, the US will have authorized roughly $60 billion in total spending for Ukraine Sen. Rand Paul (R-KY): The cost of this package we are voting on today is more than the US spent during the first year of the US conflict in Afghanistan. Congress authorized force, and the President sent troops into the conflict. The same cannot be said of Ukraine. This proposal towers over domestic priorities as well. The massive package of $60 billion to Ukraine dwarfs the $6 million spent on cancer research annually. $60 billion is more than the amount that government collects in gas taxes each year to build roads and bridges. The $60 billion to Ukraine could fund substantial portions or entire large Cabinet departments. The $60 billion nearly equals the entire State Department budget. The 60 billion exceeds the budget for the Department of Homeland Security and for the Department of Energy. And Congress just wants to keep on spending and spending. May 12, 2022 Senate Committee on Foreign Relations Witnesses: Jessica Lewis, Assistant Secretary of State for Political-Military Affairs Erin McKee, Assistant Administrator for Europe and Eurasia, U.S. Agency for International Development Karen Donfried, Assistant Secretary of State for European and Eurasian Affairs, U.S. Department of State Beth Van Schaack, Ambassador-at-Large for Global Criminal Justice, U.S. Department of State Clips Sen. Ed Markey (D-MA): Are we making it very clear to Russia that we do not want to pose an existential threat to them, that our only goal is to restore the territorial integrity of Ukraine? Karen Donfried: We are making it very clear to Russia that this is not a conflict between Russia and the United States. We are not going to engage directly in this war. President Biden has been explicit in saying we are not sending US troops to fight in this war. So I do believe we have made that clear. Our goal here is to end a war not to enlarge it. Sen. Rob Portman (R-OH): As you all are waking up every morning, I know with the thought in mind that America's role here is to help Ukraine win and I want to talk a little about how we define victory. When Secretary Austin said after meeting with President Zelenskyy, that we can win this war against Russia -- this happened a few weeks ago -- I thought that was positive. On Monday, the foreign minister of Ukraine, who all of us have had a chance to visit with said, of course, the victory for us in this war will be a liberation of the rest of the territory. So Assistant Secretary Donfried, first, just a yes or no. Do you believe Ukraine can win this war? Karen Donfried: Yes. Sen. Rob Portman: And how would you define victory? Would you define victory as requiring the return of all Ukraine sovereign territory, including that that the Russians seized in 2014? Karen Donfried: Well, Senator Portman, thank you for that question. And thank you for your engagement on these issues. Your question very much relates to where Chairman Menendez began, which is, are we in a position of believing that it is Ukraine that should be defining what winning means? And I agreed with Chairman Menendez's statement on that, and that is where the administration is. We believe Ukraine should define what victory means. And our policy is trying to ensure Ukraine success, both by — Sen. Rob Portman: So the administration's official position on victory is getting Crimea back and getting the Donetsk and Luhansk region back as well. Karen Donfried: Again, I believe that is for the Ukrainians to define. Karen Donfried: Against this threat to regional security, global stability, and our shared values, we are supporting freedom, democracy, and the rules based order that make our own security and prosperity and that of the world possible. Sen. Bob Menendez (D-NJ): I believe we must also think about reconstruction efforts in Ukraine, the tools and ongoing governance and economic reforms, specifically in the judicial space, that will facilitate rebuilding critical Ukrainian sectors and attracting foreign investment. May 11, 2022 House Committee on Appropriations, Subcommittee on Defense held a budget hearing on the Department of Defense. Witnesses: Lloyd J. Austin III, Secretary of Defense Michael J. McCord, Under Secretary of Defense (Comptroller)/Chief Financial Officer General Mark A. Milley, Chairman, Joint Chiefs of Staff Clips 21:40 General Mark Milley: Alongside our allies and partners, at any given time approximately 400,000 of us are currently standing watch in 155 countries and conducting operations every day to keep Americans safe. 21:56 General Mark Milley: Currently we are supporting our European allies and guarding NATO's eastern flank, in the face of the unnecessary war of aggression by Russia, against the people of Ukraine, and the assault on the democratic institutions and the rules based international order that have prevented great power war for the last 78 years since the end of World War Two. We are now facing two global powers, China and Russia, each with significant military capabilities, both who intend to fundamentally change the current rules based order. May 9, 2022 Clips Sen. Lindsay Graham (R-SC): If Putin still standing after all this then the world is going to be a very dark place China's going to get the wrong signal and we'll have a mess on our hands in Europe for decades to come so let's take out Putin by helping Ukraine April 25, 2022 March 26, 2022 November 4, 2015 House Foreign Affairs Committee Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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May 22, 2022 • 1h 19min

CD252: Women’s Health Protection Act

The Women’s Health Protection Act is a bill written by Democrats that would guarantee access to abortion services in the United States. While this bill is unlikely to become law, learning what exactly the Democrats are proposing is instructive, as many of us will be voting with abortion in mind later this year. Now that the Supreme Court is poised to overturn previous decisions that guaranteed access to abortion services for the past 50 years, what do Democrats hope to do in response? Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Links to We’re Not Wrong Executive Producer Recommended Episode : A Coup for Capitalism Follow up reading: Tom Phillips, Patrick Wintour and Julian Borger. May 19, 2022. The Guardian. Background Sources Recommended Congressional Dish Episode : The Abortion Bill Abortion Background Laura Temme. May 12, 2022. FindLaw. Grace Panetta, Shayanne Gal, and Taylor Tyson. Updated May 9, 2022. Business Insider. Jon O. Shimabukuro. Feb 25, 2022. Congressional Research Service. Katherine Kortsmit et. al. Nov 27, 2020. Centers for Disease Control and Prevention. United Kingdom National Health Service. Start for Life. A. Pawlowski. Nov 9, 2017. Today. Supreme Court of the United States. Jun 29, 1992. Justia. The Draft Decision Adeel Hassan. May 6, 2022. The New York Times. Supreme Court of the United States. Feb 10, 2022. Bills Sponsor: Rep. Judy Chu (D-CA) Sponsor: Sen. Richard Blumenthal (D-CT) Bill Outline Gives health care providers the right to provide abortion services and gives patients the right to receive abortion services "without any of the following limitations or requirements": Requirements to perform specific tests or medical procedures prior to an abortion Requirements that direct health providers to provide medically inaccurate information before or during abortion services Limitations on the health care provider's ability to provide drugs to the patient Limitations preventing the health care provider from performing abortion services via telemedicine Limitations placed on abortion providing facilities that are not placed on hospitals and other facilities where similar procedures are performed Requirements that the patient attend medically unnecessary pre-abortion in-person office visits Limitations on abortions "at any point or points in time prior to fetal viability" Limitations on abortions "after fetal viability when, in the good-faith medical judgement of the treating health care provider, continuation of the pregnancy would pose a risk to the pregnant patient's life or health." Requirements that patients disclose the reason they want an abortion prior to fetal viability. Allows the courts to consider the following in determining if a requirement illegally impedes access to abortion services: If the requirement interferes with a health care providers ability to provide care and services or poses a risk to the patient's health or safety If the requirement would likely delay or deter some patients from accessing abortion services If the requirement is likely to increase the financial costs of providing or obtaining abortion services If the requirement would likely limit the availability of abortion services in a State or geographic region If the requirement imposes penalties on health care providers that are not imposed on or are more severe than penalties imposed on other health care providers for comparable conduct or failures to act This law would apply to the Federal Government and "each State government" and no State government can implement and enforce any law or regulation that conflicts with this law. The law would not govern physical access to clinic entrances, insurance coverage for abortions, contracts, or bans on partial birth abortions. Immediately upon enactment. Allows the Attorney General to sue any State or government official who implements or enforcement limitations or requirements that would be prohibited by this law. Allows individuals, "entities", and health care providers adversely affected by violations of the law to also sue the State that violates the law with illegal limitations and requirements The costs of the trial and attorney's fees would be paid by the State if the State loses the case. The person suing could not be forced to pay for attorney's fees if the claim was judged to be "non-frivolous" even if they lose. Sponsor: Trent Franks (R-AZ) Status: Died in 113th Congress Audio Sources May 10, 2022 September 24, 2021 Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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May 8, 2022 • 1h 21min

CD251: BIF: Driving Dangers Sustained

The recently signed infrastructure law continues the United States’ over-reliance on the most dangerous way to travel: driving a vehicle. Did Congress make sufficient safety improvements to decrease the dangers posed by driving in the United States? This episode will examine all vehicle-related safety provisions to help you weigh your own transportation options. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : BIF: Appalachian Chemical Storage : BIF: The Growth of US Railroads : BIF: The Infrastructure BILL : Trailblazer vs. ThinThread Why You Should Be Afraid of Cars Apr 12, 2022. Statista. National Highway Traffic Safety Administration. Mar 2022. U.S. Department of Transportation. Jun 2021. Statista. Injury Facts. National Safety Council. Jon Ziomek. Sept 28, 2020. Historynet. National Highway Traffic Safety Administration. U.S. Department of Transportation. Problems the Law Does (and Does Not) Address Jake Blumgart. Nov 15, 2021. Governing. Self Driving Cars Neal E. Boudette. May 3, 2022. San Francisco Examiner. Natasha Yee. Apr 1, 2022. Phoenix New Times. Feb 20, 2022. Carsurance. Neal E. Boudette. Jul 5, 2021. The New York Times. Clifford Law Offices PC. May 5, 2021. The National Law Review. Katie Shepherd and Faiz Siddiqui. Apr. 19, 2021. The Washington Post. Riley Beggin. Jan 15, 2021. Government Technology. Faiz Siddiqui. Oct 22, 2020. The Washington Post. Niraj Chokshi. Feb 25, 2020. The New York Times. Michael Laris. Feb 11, 2020. The Washington Post. Alex Davies. May 16, 2019. Wired. Neal E. Boudette and Bill Vlasic. Sept 12, 2017. The New York Times. Rachel Abrams and Annalyn Kurtz. Jul 1, 2016. The New York Times. Alcohol Detection Systems Isaac Serna-Diez. Nov 23, 2021. YourTango. Keyless Entry Carbon Monoxide Deaths Jun 20, 2019. Kelley Uustal Trial Attorneys. Jun 7, 2019. KidsAndCars.org. Kids Left in Cars Morgan Hines. Aug 2, 2019. USA Today. Scottie Andrew and AJ Willingham. July 30, 2019. CNN. John Bacon. Jul 28, 2019. USA Today. Eric Stafford. May 6, 2019. [“Children Can Die When Left in the Back Seat on a Warm Day—and 800 Already Have. Car and Driver. National Highway Traffic Safety Administration. U.S. Department of Transportation. Motorcycle Helmets May 2022. Insurance Institute for Highway Safety. Insurance Information Institute. Adam E. M. Eltorai et. al. March 16, 2016. BMC Public Health. Truck Safety Rechtien. Non-motorist Safety Governors Highway Safety Association. March 2021. Governors Highway Safety Association. John Wenzel. Jan 6, 2020. Saint Paul Sign & Bollard. Richard Peace. Feb 20, 2019. Electric Bike Report. 911 System Upgrades Mark L. Goldstein. January 2018. Government Accountability Office. National 911 Program. December 2016. U.S. Department of Transportation. CD021: Trailblazer vs. ThinThread Followup The Chertoff Group. Atlantic Council. Tim Shorrock. Apr 15 2013. The Nation. The Law Law Outline Authorizes appropriations for Federal-Aid for highways at between $52 billion and $56 billion per year through fiscal year 2026 (over $273 billion total). Authorizes $300 million for for 2022, which increases by $100 million per year (maxing out at $700 million in 2026) Authorizes between $25 million and $30 million per year for "community resilience and evacuation route grants" on top of equal amounts for "at risk coastal infrastructure grants" Authorizes a total of $6.53 billion (from two funds) for the bridge investment program Caps the annual total funding from all laws (with many exceptions) that can be spent on Federal highway programs. Total through 2026: $300.3 billion Adds protected bike lanes to the list of projects allowed to be funded by the highway safety improvement project Adds "vulnerable road users" (non-motorists) to the list of people who must be protected by highway safety improvement projects If 15% or more of a state's annual crash fatalities are made up of non-motorists, that state will be required to spend at least 15% of its highway safety improvement project money on projects designed to improve safety for non-motorists. Each state, by the end of 2023, will have to complete a vulnerable road user safety assessment that includes specific information about each non-motorist fatality and serious injury in the last five years, identifies high-risk locations, and identifies possible projects and strategies for improving safety for non-motorists in those locations. Creates a new program to improve the ability of children to walk and ride their bikes to school by funding projects including sidewalk improvements, speed reduction improvements, crosswalk improvements, bike parking, and traffic diversions away from schools. Up to 30% of the money can be used for public awareness campaigns, media relations, education, and staffing. No additional funding is provided. It will be funded with existing funds for "administrative expenses". Each state will get a minimum of $1 million. Non-profit organizations are eligible, along with local governments, to receive and spend the funding. Non-profits are the only entities eligible to receive money for educational programs about safe routes to school. Allows the Transportation Secretary to allocate funds for dedicated bus lanes Adds "shared micromobility" projects (like bike shares) to the list of projects that can be funded as a highway project Electric bike-share bikes must stop assisting the rider at a maximum of 28 mph to be classified as an "electric bicycle" Requires each state, in return for funding, to carry out 1 or more project to increase accessible for multiple travel modes. The projects can be... The enactment of "complete streets standards" (which ensure the safe and adequate accommodation of all users of the transportation system) Connections of bikeways, pedestrian walkways, and public transportation to community centers and neighborhoods Increasing public transportation ridership Improving safety of bike riders and pedestrians Intercity passenger rail There's a way for State's to get this requirement waived if they already have Complete Streets standards in place Creates a grant program, funded at a minimum of $10 million per grant, for projects aimed at reducing highway congestion. Eligible projects include congestion management systems, fees for entering cities, deployment of toll lanes, parking fees, and congestion pricing, operating commuter buses and vans, and carpool encouragement programs. Buses, transit, and paratransit vehicles "shall" be allowed to use toll lanes "at a discount rate or without charge" By the end of 2022, the Secretary of Transportation needs to create a competitive grant pilot program to fund "bollard installation projects", which are projects that raise concrete or metal posts on a sidewalk next to a road that are designed to slow or stop a motor vehicle. The grants will pay for 100% of the project costs Appropriates only $5 million per year through 2026 By early 2023, the Transportation Department has to conduct a study on the existing and future effects of self-driving cars on infrastructure, mobility, the environment, and safety. Creates a grant program authorized for $1 billion total that will fund walking and biking infrastructure projects that each cost $15 million or more and connect communities to each other, including communities in different states, and to connect to public transportation. The Federal government will pay for 80% of the project costs, except in communities with a poverty rate over 40% (the Federal government will pay 100% of the project costs in impoverished communities). A Federal regulation will be created by November 2023 which will require new commercial vehicles to be equipped with automatic braking systems and there will be performance standards for those braking systems. Creates a three year pilot program, capped at 3,000 participants at a time, for people under 21 to be trained by people over the age of 26 to become commercial truck drivers. Drivers under the age of 21 are not allowed to transport any passengers or hazardous cargo A Federal regulation will be created by November 2023 requiring that limousines have a seat belts at every seating position, including side facing seats. Prohibit the Federal Government from withholding highway safety money to the states that refuse to require helmets for motorcycle drivers or passengers who are over the age of 18. Creates a grant program (by November 2023) that will fund states that want to create a process for notifying vehicle owners about any open recalls on their cars when they register their cars with the DMV. The state receiving the money is only required to provide the notifications for two years and participation in general is voluntary. Creates financial incentives for states to create laws that prohibit drivers from holding "a personal wireless communications device" while driving, has fines for breaking that law, and has no exemptions for texting when stopped in traffic. There are exceptions for using a cell phone for navigation in a "hands-free manner" Creates financial incentives for states to create laws that require curriculum in driver's education courses to include information about law enforcement procedures during traffic stops and the rights and responsibilities of the drivers when being stopped. The states would also have to have training programs for the officers for implementing the procedures that would be explained to drivers. Requires the Secretary of Transportation to implement all of the national-level recommendations outlined in a by the end of November 2022. Authorizes a little over $1 billion total for vehicle safety programs from 2022 through 2026 By November 2023, the Transportation Department will have to issue a regulation requiring fossil fuel powered vehicles with keyless ignitions to have an automatic shutoff system to prevent carbon monoxide poisoning. The amount of time that must trigger the shut off will be determined by the regulators. If the regulation is issued on time, this would go into effect most likely on September 1, 2024. The Secretary of Transportation must issue a regulation establishing minimum standards for crash avoidance technology that must be included in all vehicles sold in the United States starting on a date that will be chosen by the Secretary of Transportation. The technology must alert the driver of an imminent crash and apply the breaks automatically if the driver doesn't do so. The technology must include a land departure system that warns the driver that they are not in their lane and correct the course of travel if the driver doesn't do so. Repeals that required the Transportation Department to publish criteria that established timelines and performance requirements for anyone who got a grant to implement the Next Generation 9-1-1 project. By November 2024, the Secretary of Transportation will have to finish a regulation that requires passenger motor vehicles to be standard equipped with "advanced and impaired driving prevention technology" The technology must be able to monitor the performance of a driver and/or their blood alcohol level and be able to prevent or limit the car's operation if impairment is detected or if the blood alcohol is above the legal limit. This will apply to new cars sold after November 2030 at the latest. By November 2023, the Secretary of Transportation must finish a regulation requiring all new passenger vehicles to have a system alerting the driver visually and audibly to check the back seat when the car is turned off. Says it will be activated "when the vehicle motor is deactivated by the operator" Hearings February 2, 2022 Overview: The purpose of this hearing is for Members of the Subcommittee to explore the impact of automated vehicle deployment, including automated trucks and buses, on mobility, infrastructure, safety, workforce, and other economic and societal implications or benefits. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Apr 24, 2022 • 1h 30min

CD250: Congress Saves the Postal Service

Congress did a good thing! In this encouraging episode, learn about a new law that saved the Postal Service from financial doom without spending one extra penny in taxpayer money. Then, listen to the highlights from a recent hearing about the electrification of the Postal Service’s vehicle fleet. Louis DeJoy may not have sabotaged the 2020 election, but is he sabotaging the effort to transition the Postal Service away from fossil fuels? Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : Postal Service Sabotage Lobbying Open Secrets. Bill Profile: H.R. 3076. Open Secrets. Bill Profile: H.R. 3076. Open Secrets. Darrell Issa: Federal Congressional Candidacy Data Jon Stewart Podcast March 24, 2022. The Problem with Jon Stewart. The Law : 342-92 (All no votes GOP) : 79-19 (All no votes GOP) Became law on December 20, 2006 Audio Sources April 5, 2022 The Committee on Oversight and Reform held a hearing to examine the benefits, opportunities, and challenges of electrifying the Postal Service fleet through the acquisition of the Next Generation Delivery Vehicle (NGDV). Witnesses: Tammy L. Whitcomb, Inspector General, U.S. Postal Service Office of Inspector General Victoria K. Stephen, Executive Director, Next Generation Delivery Vehicle, USPS Kenny Stein, Director, Policy, Institute for Energy Research Jill Naamane, Acting Director, Physical Infrastructure Team, General Services Administration Joe Britton, Executive Director, Zero Emission Transportation Association Clips 10:00 Rep. James Comer (R-KY): While Republicans are not against the Postal Service acquiring electric vehicles, we're against mandates that ignore the business needs and the financial situation of the Postal Service. Republicans believe the postal service must be self funded. This means the Postal Service should pay for its own capital needs, like purchasing new vehicles. Meanwhile, Americans can't afford to fill up their gas tanks, let alone buy an electric vehicle. But that isn't stopping Democrats from demanding your mailman has one. 26:30 Tammy L. Whitcomb: Last February, the Postal Service awarded a contract to produce and deploy up to 165,000 new delivery vehicles over the next 10 years. While the contract allows for both electric and gasoline powered vehicles, the Postal Service's current plan is for most of the new vehicles to be gasoline powered. We have two recent reports related to this purchasing decision. One of our reports was a research paper that identified the opportunities and challenges for the Postal Service in adopting these electric vehicles. We found electric vehicles are well suited for most postal routes, and there are clear benefits to their adoption. For example, a large fleet of electric vehicles would help the Postal Service decrease its greenhouse gas emissions and encourage the growth of the electric vehicle market in the United States. Additionally, electric vehicles are more mechanically reliable than gas powered vehicles and require less scheduled maintenance. They would also result in the Postal Service incurring lower and more reliable and stable energy costs. However, there are challenges associated with adopting an electric vehicle fleet. The upfront costs are significantly higher than gasoline powered vehicles. The Postal Service would need to pay a higher per vehicle price and incur the cost of installing the charging infrastructure. The Postal Service has over 17,000 delivery units that may host electric vehicles and the cost and issues associated with installing charging infrastructure will vary by each depending on the parking layout, power availability and required upgrades. Good planning along with early and consistent communication with local governments and utility companies could help overcome these challenges. We found the Postal Service could save money in the long term by deploying electric vehicles on certain routes. For example on longer routes in in areas of the country where gas prices are traditionally higher. The Postal Service might also be able to lower the costs associated with electric vehicles by exploring different mixes of the type and number of chargers. Because many delivery routes are short, it is unlikely that every vehicle would need to plug into a charger every night. There are two other factors that could significantly change the cost benefit analysis of purchasing electric vehicles: federal funding and local incentives. The Postal Service has stated it could achieve full electrification of its delivery fleet if Congress provided $6.9 billion. Incentive programs by local utility companies might also help offset costs. 33:57 Victoria Stephen: Any mix of replacement vehicles will deliver significant reductions in emissions and improvements in fuel economy over our existing long-life vehicles. I would note, however, that we have 12,500 routes over 70 miles in length that are not candidates for electrification today, and another 5000 that require all wheel drive vehicles due to extreme climate conditions. Electrification also comes with the challenge of installing infrastructure at a multitude of postal facilities. 42:36 Jill Naamane: Last month, the Postal Service ordered 50,000 new delivery vehicles including about 10,000 that will be electric. To inform its decision, USPS conducted a total cost of ownership analysis of a range of types of vehicles. information in this analysis included the maintenance and fuel costs of each vehicle. It also developed a model that recommends the lowest cost vehicle for each delivery route, and a mix of vehicles to purchase each year. The model is based on a set of assumptions including information from the total cost of ownership analysis and details on individual delivery routes. 43:28 Jill Naamane: Our preliminary analysis of the model raises questions about the way in which certain assumptions estimate the costs and benefits of the gas and electric vehicles. I'll highlight a few examples. First, the model we reviewed used a 2020 gas price that is almost $2 per gallon less than the current national average. 43:57 Jill Naamane: Second, the model appears to assume maintenance would be more expensive for electric vehicles than gas. This is inconsistent with research we have identified, our interviews with private delivery companies, and Postal Service documents that show electric vehicles are expected to be less expensive to maintain. 44:16 Jill Naamane: Third, the total cost of ownership analysis does not include a reduction in emissions as a benefit of electric vehicles. A separate USPS Environmental Impact Statement found that with no tailpipe emissions, electric vehicles would have this benefit. 44:40 Jill Naamane: I'll turn now to factors that have so far affected the widespread acquisition of electric vehicles in federal fleets. We've previously reported that these factors include the higher upfront costs of electric vehicles and uncertainties around the cost and installation of charging infrastructure. Our ongoing work indicates that these factors remain relevant. For example, USPS officials said the higher upfront cost was a key factor in their decision making. They estimate that the new electric and gas delivery vehicles will not cost the same until 2031. In addition, USPS estimates a range in the cost of installing chargers depending on the site and it is uncertain whether older facilities have sufficient power capacity to support the charging infrastructure. 51:50 Rep. Carolyn Maloney (D-NY): On March 24, the Postal Service placed its first purchase order of 50,000 vehicles with Oshkosh. And although the Postal Service initially insisted it could buy only 5000 electric vehicles in this first order, it doubled that amount to 10,000 after this committee and others began to ask questions. So I'd first like to ask Miss Steven, can you briefly explain what changed the Postal Service's analysis to allow for the increase of EVs in this purchase order? Victoria Stephen: Yes, thank you for the question. The first thing that that it's important to note is that the Postal Service has committed to continuing to reassess changes in the market. And so the point that you and some of the other speakers have made today about changing fuel prices…$2.19 was the price at the time that we prepared the analysis, we have continued to do ongoing analysis on changing fuel prices and sensitivity analysis to determine if that change is our mix. It certainly does. The gas prices are higher today than they were when we prepared the initial analysis. So that's one factor. The other key factor is that through the efforts of you and your colleagues, postal reform is making a big difference for the Postal Service. It allows us the flexibility to consider our capital position differently than prior to the passage of postal reform. So between those two key variables, we were able to go back and assess our ability to increase the proportion of electric vehicles within our financial resources and within our means, and we're happy to do that. 1:44:00 Rep. Clay Higgins (R-LA): What would the Postal Service do right now if a postal service vehicle runs out of fuel on its route? Victoria Stephen: A conventional vehicle today? Rep. Clay Higgins (R-LA): Yes, yes, ma'am. Victoria Stephen: Yeah, we will call our local team and they would— Rep. Clay Higgins (R-LA): And you’d bring in gas pretty quick, wouldn’t you? Victoria Stephen: That’s right. Rep. Clay Higgins (R-LA): What do you what are you going to do it for the electric postal service vehicle runs out of juice? Victoria Stephen: It’s more challenging— Rep. Clay Higgins (R-LA): You’re gonna have to tow it. So listen, I say to my colleagues across the aisle, maybe the time has come for this discussion, but let's have it honestly. It’s not going to work. We're spending billions of dollars of the people's treasury to accomplish some dream. Not to mention what my colleague has brought up: the raw materials for these batteries being mined by child slave labor overseas. That raw product bought by China is assembled into the finished product by slave labor in China. Do we support that? For God's sakes, let's take a step back. As a committee, we owe it to the American people that we serve to take a hard look at this thing. 2:01:06 Rep. Glen Grothman (R-WI): Some of my colleagues proposed requiring 75% of the vehicles to be electric. Do you think that's a reasonable possibility? Do you think that's really something that could be handled right now? Victoria Stephen: I think it's a bit beyond what our estimates say is possible. When we were asked by some of the congressional committee members and staff throughout the last year to assess how far we could go with our electrification, the response we provided was 70% of our delivery fleet acquisitions over the course of the decade could be electrified if resources were made available. 3:16:05 Rep. Jared Huffman (D-CA): And then there's the problem with the Postal Service assumptions about EV range, a 70 mile vehicle range. In your extensive work in this field, including the vehicles that companies like GM, Ford and rivian? are providing to private fleets, did USPS use the correct assumption about battery range? Joe Britton: No, it is far inconsistent with what we're seeing in the marketplace and I'll give you a couple examples. The Ford eTransit van? gets nearly two miles per kilowatt hour in the battery pack. The workhorse C Series? gets one and a half miles per kilowatt hour in the battery pack. The Arrival van that is being contracted with UPS gets 1.7 miles per kilowatt hour in the battery pack. The USPS assumption is that this vehicle gets seven tenths of a mile per kilowatt hour in the battery pack. The only other vehicle that we have seen that has that inefficient of an electric drive train would be a Class A tractor trailer or semi truck fully weighted down. It is impossible [unintelligible] -- Rep. Jared Huffman (D-CA): And if the model used the correct range assumptions, wouldn't that significantly affect the total cost of ownership analysis, including the number of charging stations needed to support these vehicles? Joe Britton: That's correct. You would not need nearly as many charging stations as the Postal Service is asserting. 3:20:12 Rep. James Comer (R-KY): It's a worthy cause to try to change to try to transfer from fossil fuels to electric vehicles. But the policies in the Biden administration are making that even more difficult than the economics of it. For example, the Biden administration war on coal is making it more difficult to mine coal and to burn coal. I know that from being from a coal burning state and a coal producing state. You have to have coal to make electricity. You also have to have natural gas to make electricity. We have a lot of problems with our energy policy in America from the Biden administration. And he's gonna make electrifying vehicles even more difficult. February 8, 2022 Clips 20:40 Sen. Mike Lee (R-UT): Because the Postal Service is required to deliver to every American even on unprofitable routes. The postal service may be charging lower than market rates in its service contracts with private companies. This may not only shortchange the Postal Service making further taxpayer bailouts likely, but it could also distort competition in the package delivery market. 22:45 Sen. Mike Lee (R-UT): Senator Scott's amendment would alleviate some of the financial burdens that this bill would impose on taxpayers and the Medicare program by forcing the Postal Service to reimburse Medicare for all of the additional costs that would be created by requiring future postal retirees to enroll in Medicare. 2:38:33 Sen. Rob Portman (R-OH): I would also like to note what this bill does not do because there has been some misinformation out there. One, it does not appropriate new funds to the post office, period. Two, it does not change the accounting or costing structure for packages and letters so it does not disadvantage private-sector carriers. That is very important to me. This is the status quo that we are putting in place here. It does not change the accounting or costing structure for packages and letters. Third, it does not allow the Postal Service to enter into new commercial services like postal banking. That is also very important to me. And contrary to the claims of this bill’s opponents, this bill does not impact the solvency of the Medicare hospital trust fund. That is the trust fund we all talk about. It is going belly-up in 2026. It does not affect it, period. CBO has actually written us something saying that, but it just makes sense. People are already in Part A. And this bill does not increase the Medicare Part B and Part D premiums based on the CBO analysis. Why? Partly because it is such a small number of people. Only 25 percent of postal employees were not already in Part B and Part D, so additional ones make very little difference. But part of it is they are paying their premiums. February 8, 2022 Clips 37:10 Rep. Darrell Issa (R-CA): The fact is they haven't made a profit since 2006 as they are mandated. The truth is, the post office isn't lacking liquidity, it is bankrupt and nothing in this bill will make the post office truly solvent. It simply wipes out and wipes away debts and shifts the burden onto taxpayers. The bill forgives $46 billion in debts owed by the Postal Service, forcing the taxpayers to pay it. May 13, 2021 Clip 44:45 Rep. Speier (D-CA): Believe it or not, prohibition has been over for 90 years, but somehow, we never fixed it so that the US Postal Service could be in a position to mail and process liquor and wine. So for 90 years, they have had their hands tied, while others were able to do that task. We can't have the Postal Service break even or even become profitable if we keep tying its hands. So we also have an interest in protecting small businesses, micro breweries, small retail establishments, small wineries. They cannot ship their product because they either have to have the sanctions of the wholesalers or they don't ship. Senate Homeland Security and Governmental Affairs Committee August 21, 2020 Clips 12:30 Louis DeJoy: Our business model established by the Congress requires us to pay our bills through our own efforts. I view it as my personal obligation to put the organization in a position to fulfill that mandate. With action from the Congress and our regulator, and significant effort by the Postal Service, we can achieve this goal. This year, the Postal Service will likely be reported loss of more than $9 billion. Without change, our losses will only increase in the years to come. It is vital that Congress enact reform legislation that addresses our unaffordable retirement payments. Most importantly, Congress must allow the postal service to integrate our retiree health benefits program with Medicare. August 6, 2009 Speakers: John Potter, Former Postmaster General David Williams, Former Inspector General, USPS Clips 46:10 David Williams: The Postal accountability and Enhancement Act of 2006 requires the postal service to make 10 annual payments of $5 billion each in addition to the $20 billion already set aside for pre funding its retiree health benefits, the size of the $5 billion payments has little foundation and the current payment method is damaging to the financial viability of the Postal Service even in profitable times. The payment amounts were not actuarially based instead, the required payments were built to ensure that the Postal Act did not affect the federal budget deficit. This seems inexplicable since the Postal Service is not part of the federal budget, does not receive an appropriation for operations and makes its money from the sale of postal services. The payment amounts are fixed through 2016 and do not reflect the funds earnings. Estimates of the Postal Service liability as a result of changing economic circumstances, declining staff size or developments in health Care and pharmaceutical industries. The payments do not take into account the Postal Service’s ability to pay and are too challenging even in normal times. 1:10:10 John Potter: And when I look around the world and see what other posts are, if you’re in Australia and you want to update your driver’s license, renew it, you go to the post office. If you’re in Italy and you go into a bank, more than likely going to the post office, if you’re in Japan and you want to buy insurance, more than likely you’re going to the post office. And if you’re in France and you have a cell phone issue, more than likely, again, you’re going to the post office. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Mar 20, 2022 • 1h 49min

CD249: A Few Good Laws

We have some new laws! In this episode, a brief overview of the government funding law that (finally) funds the government for 2022 and provides money and weapons to Ukraine, a new law that protects drinking water, a new law that slightly reduces the corruption of Puerto Rico’s financial oversight board, and a new law that guarantees you rights that corporate contracts have been taking away. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Executive Producer Recommended Congressional Dish Episode : Weapons for the World Background Sources Recommended Congressional Dish Episodes : Understanding the Enemy : Keeping Ukraine : Target Belarus : Electrifying Puerto Rico : Controlling Puerto Rico : Crisis in Puerto Rico Recommended Congressional Dish YouTube Videos Earmarks Jamie Dupree. Mar 10, 2022. Regular Order by Jamie Dupree. Continuing Resolution Mary Ellen McIntire. Mar 9, 2022. Roll Call. Ballotpedia. Updated February 11, 2021. Red Hill Water Contamination Sophia McCullough. Mar 7, 2022. Hawai’i Public Radio. Scott Kim. Mar 4, 2022. Hawai’i Public Radio. Sophia McCullough. Mar 1, 2022. Hawai’i Public Radio. Associated Press, HPR News Staff. Nov 22, 2021. Hawai’i Public Radio. Scott Kim and Catherine Cruz. Oct 27, 2021. Hawai’i Public Radio. Lead Pipes Karen Pinchin. Sep 10, 2019. Frontline. Brittany Greeson. Natural Resources Defense Council. Puerto Rico U.S. District Court for the District of Puerto Rico. Feb 18, 2019. Case: 17-03283-LTS. Forced Arbitration Matt Stoller. Mar 7, 2022. BIG. Laws Law Outline Title VII: General Provisions $300 million from the "Operation and Maintenance, Defense-Wide" account must be used for the Ukraine Security Assistance Initiative The money can be used for "salaries and stipends" of Ukraine's military in addition to equipment and support Prohibitions against Russia will not be lifted until "the armed forces of the Russian Federation have withdrawn from Crimea, other than armed forces present on military bases" agreed upon by the Russian and Ukrainian governments. "None of the funds made available by this Act may be used to provide arms, training or other assistance to the Azov Battalion. Title VII: General Provisions "None of the funds appropriated by this Act may be made available for the implementation of any action or policy that recognizes the sovereignty of the Russian Federation over Crimea or other territory in Ukraine." This will end when the Secretary of State certifies that "the Government of Ukraine has reestablished sovereignty over Crimea and other territory in Ukraine under the control of Russian-backed separatists." Title I: Department of Agriculture $100 million for Food for Peace grants $195.5 million for US military personnel $213 million for Air Force procurement $5.5 billion for operations and maintenance $3.5 billion of this is for replacing weapons given to Ukraine and for "defense services" and "military eduction and training" provided to the Government of Ukraine. Authorizes $4 billion for direct loans to Ukraine and NATO countries, along with permission to reduce or cancel their obligations to pay us back. Amount provided this way "shall not be considered assistance for the purposes of provisions of law limiting assistance to a country" $2.65 billion to countries housing Ukrainians refugees for emergency food and shelter $1.4 billion for refugees $1.12 billion for Ukraine and "other countries" - Poland and Hungary in particular - that are enacting IMF economic reforms and expanding the private sector $650 million for the "foreign military financing program" for Ukraine "and countries impacted by the situation" $647 million for the "Economic Support Fund" which can be transferred to fund activities "related to public engagement, messaging, and countering disinformation." Expands the emergency powers of the President in 2022 to allow him to provide $3 billion in military equipment, services and money to foreign countries and international organizations, instead of the usual limit of $100 million per year Increases the amount of weapons that are allowed to be exported from $2.05 billion to $3.1 billion $120 million for "Transition Initiatives" Law Outline DIVISION A - FURTHERING ADDITIONAL CONTINUING APPROPRIATIONS ACT, 2022 Extends government funding at 2021 levels until March 11, 2022. Allows the Department of Defense to spend their Operations and Maintenance and emergency funds to respond to the Red Hill Bulk Storage Facility spill but caps the spending at $53 million. Adds $250 million to their budget for 2022 to address drinking water contamination caused by the spill. Adds $100 to their budget so they can comply with the Hawaii state order to remove the fuel from the Red Hill facility. Senate: Unanimous Consent Law Outline Sec 2: Disclosure by Professional Persons Seeking Approval of Compensation Under Section 316 or 317 of PROMESA Requires attorneys, accountants, appraisers, auctioneers, agents, and other professional persons to file a disclosure listing their conflicts of interest with debtors, creditors - or their attorneys and accountants - and the oversight board members, directors, and employees. Failure to file the disclosure, or an incomplete disclosure, will prevent that person from being paid. Being "not a disinterested person" or having an "adverse interest" will also disqualify that person from compensation. This will only apply to cases filed AFTER enactment of this law (January 20, 2022) Law Outline Sec. 2: Predispute Arbitration of Disputes Involving Sexual Assault and Sexual Harassment. Invalidates predispute arbitration clauses in contracts if the person alleging sexual harassment or sexual assault or a representative of a class action lawsuit elects to go to court instead of use arbitration. This will apply whether the case is to be filed in Federal, Tribal, or State court. The decision over where the case will be heard will be made by a court, not by an arbitrator regardless of what is in the contract. Sec 3: Applicability Will only apply to any dispute or claim that "arises or accrues" on or after the date of enactment. Hearings and Debate February 23, 2022 Clips 1:19:09 Jennifer Gonzalez-Colon: Representative Velazquez and myself have proposed this bipartisan initiative in the last two congresses having achieved passage in the house during the last session Rep. Sheila Jackson Lee (D-TX): In response to dire fiscal issues facing Puerto Rico at the time, Congress passed the Puerto Rico oversight management and economic stability Act, or Preska in 2016. That legislation established the financial oversight and management board with control over Puerto Rico's budget laws, financial plans and regulations and the authority to retain professionals to assist the board in executing its responsibilities. Rep. Nydia Velázquez (D-NY): The Puerto Rico recovery accuracy in disclosures act of 2021 or product eliminates a double standard currently facing Puerto Rico. On the US Code and federal bankruptcy procedure. Any conflicts of interest or even the perception of such conflict between those working on the bankruptcy and the debtor there are required to be disclosed. However, a loophole in the current law prevents this requirement from being extended to the people of Puerto Rico. Rep. Dan Bishop (R-NC): Most significantly the gap in the 2016 law created a potential for undisclosed compensation terms and undiscovered conflicts of interest visa vi parties and interest for professional serving in Puerto Rico's bankruptcy. Resident Commissioner Jenniffer González Colon: Learning that someone was involved in businesses of one of the parties in the case only after they are named and working on the case does not create assurance of their commitment to the best interest of Puerto Rico or even managing the depth. Rep. Dan Bishop (R-NC): This builds disclosure and oversight requirements increase the likelihood that conflicts of interest will be caught and timely addressed before compensation decisions are made. Rep. Nydia Velázquez (D-NY): While we can have different opinions on how effectively the oversight board is carrying out its mission, one thing should be clear. The island's residents should be entitled to the same rights and protections of any debtor on the mainland. February 7, 2022 Clips 9:21 Rep. Michelle Fischbach (R-MN): If H.R. 4445 becomes law contracts will be far less likely to include the option to arbitrate. 10:28 Rep. Michelle Fischbach (R-MN): Why are some in Congress so intent on taking this legislation forward today? For years, Democrats have tried to gut arbitration agreements for all kinds of different claims and plaintiffs. If Democrats had their way, everyone from consumers to civil rights plaintiffs, to those with antitrust claims, to individuals using financial service products and others would not be able to contract in advance to resolve disputes through arbitration. 47:33 Rep. Jim Jordan (R-OH): We know that if parties can’t agree in advance to arbitrate then they are unlikely to agree to arbitrate after there has been a dispute. As a result, the plaintiff may never get to arbitration. House Armed Services Committee, Subcommittee on Readiness January 11, 2022 This hearing conducted oversight into the Navy’s maintenance of the Red Hill Bulk Fuel Storage Facility, the Navy’s investigation into and response to the November 2021 release of fuel from Red Hill facility impacting drinking water, its impacts on service members and civilians, clean-up and remediation efforts, and next steps forward. Witnesses: Vice Admiral Yancy Lindsey, Commander, Navy Installations Command Rear Admiral Blake Converse, Deputy Command, U.S. Pacific Fleet Rear Admiral John K. Korka, Commander, Naval Facilities Engineering Systems Command Chief of Civil Engineers Rear Admiral Peter Stamatopoulos, Supply Corps, United States Navy, Commander, Naval Supply Systems Command and 49th Chief of Supply Corps Captain Michael McGinnis Pacific Fleet Surgeon, Commander, U.S. Pacific Fleet Clips 9:05 Rep. John Garamendi (D-CA): Why does Red Hill exist in the first place? Even before the attack on Pearl Harbor, the United States had grown concerned about the vulnerability of above ground fuel storage tanks in 1940. The construction began on the Red Hill bulk fuel storage facility, a one in a kind engineering innovation that secured the fuel from enemy aerial attack. The facility holds 250 million gallons of fuel in 20 steel lined underground tanks encased in concrete. These tanks are connected to three gravity fed pipelines, running two and a half miles to Pearl Harbor fuel appears. However, a statistic less commonly quoted by the DoD is that the facility is also 100 feet above the groundwater aquifer that provides water to the residents of Oahu. Thus, it has always been the responsibility of the military to ensure that these tanks are maintained in a manner that not only protects the wartime fuel supply, but the people have a Oahu water supply 18:45 Rear Admiral Blake Converse: I want to start by saying that the Navy caused this problem, we own it, and we're gonna fix it. 19:45 Rear Admiral Blake Converse: Beginning on November 28, residents of certain neighborhoods on our Joint Base Pearl Harbor Hickam here in Hawaii in military housing began recording vapors, discoloration and contamination of the water provided by the Navy. The Red Hill shaft well, which sits near the Navy's Red Hill bulk fuel storage facility was immediately suspected to be the source of this contamination as that was the source of the drinking water for those affected neighborhoods. So it was shut down that evening, November 28. And it just remained isolated since that day. Later, samples from the Red Hill shaft well would confirm the presence of petroleum contamination. 39:40 Captain Michael McGinnis: Medical teams have screened over 5900 patients during this event. The vast majority were conducted within the first two weeks of our response. patient's symptoms were consistent with an acute environmental exposure event. patient's symptoms consistent with the following nausea, vomiting, headache, diarrhea, skin or eye irritation. Once patients were removed from the water source, the symptoms rapidly resolved. 42:12 Rear Admiral Blake Converse: Our best information is that this recent spill was due to operator error. 1:31:45 Rep. Kaiali'i Kahele (D-HI): Tanks number three, number four and number 11 have not been inspected for approximately 40 years. So my question to Navy Supply Systems Command is why are these tanks still in operation? And how can you assure this committee and the people of Hawaii that tanks three, four and 11, that have not even been looked at in the last 40 years, are safe to use and meet current API 653 guidelines for bulk fuel storage underground facilities. Rear Admiral Peter Stamatopoulos: Yes, sir. Thank you for the question. Yes, you are correct. There are tanks, as you mentioned, that have been out of periodicity for quite a long time. 1:41:27 Rep. Jackie Speier: Are the commanding officers and our executive officers that are assigned to Red Hill trained in petroleum management? Rear Admiral Peter Stamatopoulos: I'll take that question ma'am. The answer is no. House Committee on Appropriations, Subcommittee on Defense January 12, 2022 Witnesses: General David H. Berger, Commandant of the U.S. Marine Corps General Charles Q. Brown, Jr., Chief of Staff of the U.S. Air Force Admiral Michael Gilday, Chief of Naval Operations of the U.S. Navy General Joseph M. Martin, Vice Chief of Staff of the U.S. Army Mike McCord, Under Secretary of Defense (Comptroller) General John W. Raymond, Chief of Space Operations of the U.S. Space Force Clips 29:51 Mike McCord: First, as I believe you're all aware a full year CR, we reduce our funding level below what we requested and what we believe we need. On the surface at the department level as a whole, the reduction to our accounts would appear to be about a billion dollars below our request, which would be significant. Even if that was the only impact. The actual reduction in practice will be much greater. Because we would have significant funding that's misaligned, trapped or frozen in the wrong places and unusable because we don't have the tools or flexibilities to realign funds on anything like the scam we would need to fix all the problems that the chiefs are going to describe. 30:27 Mike McCord: I know all of you are very familiar with the fact that virtually all military construction projects in each year's budget including the FY 22 budget are new starts that cannot be executed under a CR. 34:00 Mike McCord: The six longest CRs in the history of the Defense Department have all occurred in this last 12 year period. We have turned a 12 month fiscal year into an eight month fiscal year in terms of our ability to initiate new starts and enter contracts. This should be unacceptable and not the new normal. It's hard to see this full impact because or in the inefficiency from looking from outside because the organization has of course adapted to its circumstances just as organisms do. Nobody plans to enter into contracts in the first quarter of a fiscal year now because the odds that we would actually be able to do so are so low. Therefore we in turn, have no significant contract delays to report to you when we're under a CR. 1:44:02 Rep. Mike Rogers (R-MI): This is about decreasing domestic spending and increasing defense spending. 1:44:20 **Rep. Betty McCollum (D-MN):**This was my effort to quash those who are talking about year long CRs. No one on the Appropriations Committee is, yet you see things in the news. And unfortunately, sir, it's usually from your side of the aisle, and I'll pull it again. And it's a December 1 quote, and I can get you the gentlemen, the person who said it. Republicans should be in favor of a CR until Biden is out of office, so they're not going to talk about a one year CR. That would be the proper Republican thing to do. And anybody saying otherwise is deeply foolish. I know you and I, sir, do not agree with that sentiment. And my my goal here is to educate other members who don't understand the appropriations process as well as you and I, and many other of our colleagues that we serve alongside with. House Committee on the Judiciary, Subcommittee on Antitrust, Commercial, and Administrative Law January 16, 2019 Witnesses: Eliza Dushku, Actor/Producer & Graduate Student Myriam Gilles, Professor of Law, Paul R. Verkuil Chair in Public Law, Benjamin N. Cardozo School of Law Lora Henry, Canton, OH Andowah Newton, New York, NY Sarah Parshall Perry, Legal Fellow, Edwin Meese III Center for Legal and Judicial Studies, The Heritage Foundation Tatiana Spottiswoode, Law Student, Columbia Law School Anna St. John, President and General Counsel, Hamilton Lincoln Law Institute Clips 30:59 Anna St. John: Instead, it's worth considering that taking away the possibility of arbitration for these victims is a top-down, heavy handed approach that denies them the advantages of arbitration as a means of adjudicating their claims. 41:04 Sarah Parshall Perry: Since the 1980s, the progressive leadership of this and the upper chamber has sought to curtail the protections of the Federal Arbitration Act through bills including the Arbitration Fairness Act, Arbitration Fairness for Students Act, Consumer Mobile Fairness Act, Fairness and Nursing Homes Act, Sonsumer Fairness Act, Restoring Statutory Rights and Interests of the States Act, the Forced Arbitration Justice Repeal Act and many, many more. 47:13 Sarah Parshall Perry: arbitration agreements are not mandatory. No one, and the Supreme Court has held, is forced to sign a contract. But curtailing access to arbitration would injure, in the end, the very people that Congress has sought for nearly a century to protect. 54:50 Myriam Gilles: First, the entire regime is shrouded in secrecy. And not just because victims want to keep these issues confidential, which by the way is up to them, right? They should have the autonomy and the choice to decide. But because companies want to keep this stuff under wraps, they want to hide and shield sexual predators, and they don't want their business in the public eye. They don't want to deal with regulators or even with lawsuits. The secrecy here on its own just makes this a terrible way to deal with sexual harassment because it means that victims of sexual violence in the workplace who bravely tried to come forward are prohibited from telling their stories in a public forum. Instead, they're forced into this private process where everything is under wraps and siloed. Right, so this is the second bad thing. Victims can join together, even when their injuries stem from the same wrongdoing, even when they've occurred at the hands of the same perpetrator. Even when the company's tolerance for sexual harassment is structural and pervasive. Victims have to go it alone, never knowing about one another. They have to go into arbitration single file. I don't know where all these statistics are coming from about how great arbitration is how people win it all the time, because the truth is, no one goes into arbitration because it's siloed because it's secret because they don't know about what else is going on in the workplace. The secrecy that blankets these individualized proceedings prevents one victim from ever learning whether others right in the cubicle next to them might have experienced the same, the same tragedies, the same traumas and when vid when survivors are in the dark about cases filed by others in the workplace that makes coming forward that makes being the first person to come forward that much harder. As a corollary, and this is an important corollary, the relief that is available to the individual claimant doesn't prevent the wrongdoer from preying on other women doesn't prevent the predator from having all sorts of misconduct against other women in the workplace. The proceedings are one on one and the relief that arbitrators are allowed by contract to grant is individualized. They can't ever order any changes beyond what can help this one individual that happens to have the courage to come before them. I mean, can you imagine a worse system for dealing with toxic corporate culture because I can't. Third, and I think this is really important and all the survivors who've spoken about this forced arbitration is a system where the employers write the rules, and they pick the arbitral provider. Which means that victims of sexual harassment are shunted into a regime that stacked against them from the get go. First, because the arbitrators economic interest is to be very good to the repeat player employer so that they can be chosen for another arbitration next time. So the repeat player problem has been well documented, and I think it's alive and well in arbitration. And the secrecy protects that. And second, because the employer designs the entire arbitration process, it does so to serve its interests, not the interests of its workers, but its interests which again, are to keep discrimination and harassment under a veil of secrecy and out of the public eye. So given all of these things, given how bad this system is for victims of sexual harassment, it's no wonder that so few ever decide to go into private arbitration. I wouldn't. I think it sounds terrible. 1:04:00 Myriam Gilles: When an arbitration complaint is filed, it's filed in secret. In other words, the only entities that know that the arbitration has even been filed are the the employer, the employer, the complaining employee and the arbitration entity. The AAA or JAMS are one of these arbitration providers. Nobody else knows. Contrast that with court. I go down to the DC District Court today and I file a complaint, that complaint is on the public record. Right. And so as the defendants answer or motion to dismiss all the pleadings, their public litigation in the public court system, it has power, and the power it has is the power of signaling, not only to the defendant that I've sued, but to all similarly situated defendants that this is a wrong. This person has complained about something she's told her story, and she plans to prove it. None of that happens in arbitration from the beginning. It is private throughout the entire proceeding, which is held in a secret location, no public no press. All of it is private. Arbitrators don't write decisions. There are only three states in the union that currently require minimal disclosure of arbitrations pretty redacted and hard to read. If you're a researcher like I am about these issues. Other than that, everything that happens in arbitration is a black box. 1:32:18 Tatiana Spottiswoode: And the forced arbitration is so unfair. Rep. Darrell Issa (R-CA): I understand you you think forced arbitration is unfair, that's great. Most of the people on that side want to eliminate it for everything not just situations like this. Other representative: will the gentleman yield for a question? Rep. Darrell Issa: I will not. 1:49:15 Myriam Gilles: The FAA was enacted in 1925. But it was enacted so that sophisticated business people could negotiate for arbitration provisions and those provisions would be respected by courts. It was never intended to be imposed via standard form contract. And in fact, if you read the legislative history, if you read the legislation, it accepts and exempts employees. So the idea that the FAA applies to employees is something that was created by a conservative majority of the Supreme Court in 1991, in a case called Circuit City, sorry, first actually was Gilmer and then Circuit City, I can't keep all the bad cases straight. And those are the cases in which the Court interpreted, I would say misinterpreted, the FAA to apply to employees like this. So that now employers can just stick these clauses into job applications, orientation materials, even an innocuous email from HR can include a forced arbitration clause. That was not what the 1925 Congress intended they they'd be rolled, they should be rolling in their in their grades. This is not what they intended. This is what a Supreme Court intent on protecting corporations intended beginning in the 1990s. 2:39:26 Rep. Michelle Fischbach (R-MN): You know what's happened to so many women and others in the workplace is terrible but I really am concerned that by involving the government in these contracts between adults in the area of sexual harassment and assault we're opening a door for more government involvement in other areas of contracts. 2:42:09 Rep. Michelle Fischbach (R-MN): And I would argue that you have you sign it it is not you know even though we use the it's forced arbitration as people are saying it's not really you you have signed something that you have agreed to it. House Committee on the Judiciary November 16, 2021 Witnesses: Gretchen Carlson, Journalist and Advocate Myriam Gilles, Paul R. Verkuil Chair in Public Law, Benjamin N. Cardozo School of Law Phil Goldberg, Managing Partner, Shook, Hardy & Bacon L.L.P. Deepak Gupta, Founding Principal, Gupta Wessler PLLC Andrew Pincus, Partner, Mayer Brown L.L.P. Lieutenant Commander Kevin Ziober, Lieutenant Commander, U.S. Navy Reserves Clips 26:35 Rep. James Sensenbrenner (R-WI): You'll hear a different view from me. Eliminating arbitration achieves one thing, it enriches trial attorneys. 29:11 Rep. James Sensenbrenner (R-WI): The AAJ, or American Association for Justice, is the nice sounding name of the plaintiffs attorneys lobbying organization. It also happens to be a huge donor to Democratic candidates, contributing millions of dollars each cycle to their campaigns. 29:52 Rep. Jamie Raskin (D-MD): Mr. Chairman, point of order. Rep. David Cicilline (D-RI) What is your point of order? Rep. Jamie Raskin: My question is just can we impute the policy positions that members of the committee take to campaign contributions? Because if so, I think I'd be doing it a lot more frequently. I thought that's something that we don't do. Rep. David Cicilline: It's an excellent point of order, I'm sure Mr. Sensenbrenner didn't intend to communicate that in that way. Rep. Jamie Raskin: We're gonna be hearing a lot more of that in our committee if that's permissible, but I'm just curious. Maybe we can have some research done. Rep. James Sensenbrenner: Will the gentleman yield? Rep. David Cicilline: I think we don't need to engage with you. I this is an important issue with strongly held beliefs on both sides. [crosstalk] 36:00 Rep. Jerry Nadler (D-NY): We used to have a concept in law. When I went to law school they still taught it called contracts of adhesion where a contract was unenforceable if one party had no choice in entering into it. All of these arbitration clauses almost are contracts of adhesion. You try when you want to get a credit card, try crossing out the fine print if you can find it without the magnifying glass that that says that you will settle all all disputes in arbitration, cross it out, see if you get the credit card. See if you get the bank loans if you get the mortgage. You have no see if you get the car loan, you have no choice. 1:42:00 Gretchen Carlson: arbitration means that you have no way of knowing that anyone else is facing the same thing within the confines of the workplace structure. There's no way to know because the whole process is secret. And as I described during my testimony, if you do muster up the courage to go and complain, and you have an arbitration clause, that's a good day for the company, because no one will ever know anything about your story. The worst ramification of all of this is that the perpetrator gets to stay in the job. And I think one of the reasons that we've seen this cultural revolution that we're experiencing right now is because the American public was actually so angry about hearing about these stories, and they were wondering, why didn't we know about this? And the reason they didn't know about it, is because of forced arbitration. 2:00:30 Deepak Gupta: I've gone back and looked at the history of the act from 1925. People weren't blind to the possibility of abuse. They raised these concerns before this, this committee, in fact, and the and the architects of the legislation were clear, this is about letting businesses have equal bargaining power that want to resolve their disputes out of court, letting them do that, and I have no objection to that. That makes perfect sense. But but the the drafters were clear this is not about foisting this on people who don't consent through, take it or leave it contracts. And in fact, Congress put in a provision section one of the Federal Arbitration Act that says this shall not apply to any class of workers. Remarkably, the Supreme Court has read that language to mean precisely the opposite. And now it can apply to any class of workers. And so so we have just we've strayed so far away from what Congress intended in 1925. And that's why only this body Congress can set things right. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
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Feb 27, 2022 • 1h 28min

CD248: Understanding the Enemy

Russian President Vladimir Putin has launched an illegal, unjustified war against Ukraine and Putin himself is the only person who can stop the war immediately. In this episode, we seek to understand why President Putin has launched this horrific war in order to judge our country’s ability to bring the war to a quicker end. Executive Producer: Alex Bilotta Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : Keeping Ukraine : National Endowment for Democracy : Nuclear Desperation Ukraine Civil War Alan MacLeod. Feb 22, 2022. The Washington Standard. Office of the High Commissioner for Human Rights. Oct 8, 2021. United Nations. Andrew Higgins and Peter Baker. Feb 6, 2014. The New York Times. NATO Expansion Becky Sullivan. Updated Feb 24, 2022. NPR. Henry Meyer and Ilya Arkhipov. Dec 17, 2021. Bloomberg. Joe Dyke. Mar 20, 2021. Foreign Policy. NATO. Updated May 5, 2020. NATO. 2020. National Security Archive. December 12, 2017. Arms Control Association. February 9, 1990. National Security Archive. In The Encyclopedia Britannica. NATO in Ukraine Xinhua. Nov 14, 2021. News.cn Chad Menegay and Aimee Valles. Sept 22, 2021. NationalGuard.mil Reuters. April 3, 2021. U.S. News and World Report. NATO Allied Maritime Command. Mar 17, 2021. European Deterrence Initiative Paul Belkin and Hibbah Kaileh. Updated July 1, 2021. Congressional Research Service. Weapons Treaties TASS. Feb 21, 2022. Center for Arms Control and Non-proliferation. Updated March 2021. Arms Control Association. Last reviewed August 2019. General Dynamics General Dynamics. Russia-China Alliance Chen Aizhu. Feb 4, 2022. Reuters. Robin Brant. Feb 4, 2022. BBC News. Sanctions Matina Stevis-Gridneff. Feb 25, 2022. The New York Times. Congressional Response Joe Gould. Feb 22, 2022. Defense News. Reuters. Feb 25, 2022. Reuters. Images State Property Fund of Ukraine USAID Partnership Audio Sources February 23, 2022 Overview: At her weekly briefing House Speaker Nancy Pelosi (D-CA), along with several of her Democratic colleagues, talked about the situation in Ukraine and President Biden’s sanctions after Russia recognized the independence of Donetsk and Luhansk in the Donbas region. Clips 10:25 Rep. Adam Schiff (D-CA): Putin is terrified by the prospect of a democracy at his border. A democracy, giving an example to the Russian people of the kind of life and economy they might enjoy if they cast aside their own autocrat. This is, I think, one of the preeminent motivations of Vladimir Putin. 15:32 Rep. Barbara Lee (D-CA): I chair the House Appropriations Subcommittee on State and Foreign operations, which oversees many of the resources to assist the Ukrainian people through this crisis. This includes our economic assistance to Ukraine, including loan guarantees. Economic assistance would come through the economic support accounts for Europe, Eurasia and Central Asia, those of the accounts that would come through. Without getting in too many of the weeds, I wanted to just mention that because it's an effort that we're looking at now in terms of our funding. It also includes humanitarian plans, including funding for refugees, God forbid, and for those internally displaced by conflict. The administration has committed to us that in the event of conflict, there is a need over the next 12 months of at least $1 billion for humanitarian needs. So I support the efforts of the administration also to bolster Ukraine's economy, including the proposed $1 billion in loan guarantees to continue with Ukraine's economic reforms. 22:08 Rep. Nancy Pelosi (D-CA): I will just close by saying this: I had the privilege of going with President Clinton, who invited four members of Congress House and Senate, Democrat and Republican, the Senate Democrat was Senator Joe Biden. And we went to the expansion of NATO meeting in Paris. And it was all the heads of state of the then NATO countries who spoke and it was so beautiful because they all spoke in such a positive way about NATO. We thought like we were NATO and they were also NATO, they had ownership and agency in possession of the NATO possibilities. The representative of Russia who was there was Boris Yeltsin. And he was very ebullient, but he was welcoming to what was called was the expansion we had supported in our own country, the Baltic States, Poland, others countries becoming what was called the Partnership for Peace and it included many countries. Now Putin is saying push it back to pre-1997. Don't ever try to add another country and remove weapons out of Eastern Europe. That's what he wanted. No, that was not going to happen. 33:35 Rep. Nancy Pelosi (D-CA): What is this about? The people of Hung -- many of us have visited Ukraine and have seen that they love democracy. They do not want to live under Vladimir Putin. He does not want the Russian people to see what democracy looks like. And therefore he wants to bring them under his domain. 35:15 Rep. Nancy Pelosi (D-CA): When we talk about the president, he's doing the sanctions. He has a full picture of all this. As I said, he was present there the day of the expansion of NATO. I saw the respect he commanded then, and that was 1997, by the heads of state of all those countries, and of course, that has only grown over time, by his leadership, but also the expansion of NATO. I think we're very well served, I respect his judgement. And again, it's not just about when you do the sanctions, or how you support the people. It's about how the world views what Putin is doing. This is a very evil move on the part of Vladimir Putin. February 22, 2022 Overview: During an address, President Biden announced new sanctions against Russia in response to President Vladimir Putin sending Russian troops into separatist regions of Ukraine. Clips 1:57 President Biden So, today, I’m announcing the first tranche of sanctions to impose costs on Russia in response to their actions yesterday. These have been closely coordinated with our Allies and partners, and we’ll continue to escalate sanctions if Russia escalates. We’re implementing full blocking sanctions on two large Russian financial institutions: V.E.B. and their military bank. We’re implementing comprehensive sanctions on Russian sovereign debt. That means we’ve cut off Russia’s government from Western financing. It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either. Starting tomorrow [today] and continuing in the days ahead, we will also impose sanctions on Russia’s elites and their family members. They share in the corrupt gains of the Kremlin policies and should share in the pain as well. And because of Russia’s actions, we’ve worked with Germany to ensure Nord Stream 2 will not — as I promised — will not move forward. 3:23 President Biden: Today, in response to Russia’s admission that it will not withdraw its forces from Belarus, I have authorized additional movements of U.S. forces and equipment already stationed in Europe to strengthen our Baltic Allies — Estonia, Latvia, and Lithuania. Let me be clear: These are totally defensive moves on our part. We have no intention of fighting Russia. We want to send an unmistakable message, though, that the United States, together with our Allies, will defend every inch of NATO territory and abide by the commitments we made to NATO. 4:22 President Biden: Russian forces remain positioned in Belarus to attack Ukraine from the north, including war planes and offensive missile systems. Russia has moved troops closer to Ukraine’s border with Russia. Russia’s naval vessels are maneuvering in the Black Sea to Ukraine’s south, including amphibious assault ships, missile cruisers, and submarines. Russia has moved supplies of blood and medical equipment into position on their border. You don’t need blood unless you plan on starting a war. 6:25 President Biden: I’m going to take robust action and make sure the pain of our sanctions is targeted at the Russian economy, not ours. We are closely monitoring energy supplies for any disruption. We’re executing a plan in coordination with major oil-producing consumers and producers toward a collective investment to secure stability and global energy supplies. This will be — this will blunt gas prices. I want to limit the pain the American people are feeling at the gas pump. This is critical to me. 7:37 President Biden: Yesterday, the world heard clearly the full extent of Vladimir Putin’s twisted rewrite of history, going back more than a century, as he waxed eloquently, noting that — well, I’m not going to go into it, but nothing in Putin’s lengthy remarks indicated any interest in pursuing real dialogue on European security in the year 2022. 8:04 President Biden: He directly attacked Ukraine’s right to exist. He indirectly threatened territory formerly held by Russia, including nations that today are thriving democracies and members of NATO. He explicitly threatened war unless his extreme demands were met. And there is no question that Russia is the aggressor. February 21, 2022 Overview: Russian President Vladimir Putin announced after a Security Council meeting that Russia would recognize the independence of the separatist republics of Donetsk and Luhansk in Ukraine’s Donbas region. Clips 00:15 President Putin: I would like to emphasise again that Ukraine is not just a neighbouring country for us. It is an inalienable part of our own history, culture and spiritual space. These are our comrades, those dearest to us – not only colleagues, friends and people who once served together, but also relatives, people bound by blood, by family ties. 1:22 President Putin: I would like to start by saying that the modern Ukraine was completely created by Russia. To be more exact, Bolshevist, partially communist Russia. This process started almost immediately after the 1917 revolutions, leading and planning and his group of supporters did it in a rough way. If we talk about Russia, they were alienating parts of historical territories of Russia. And millions of people who live there, obviously no one asked anything. Then before the Great Patriotic War, Stalin added to the USSR and handed over some lands that belonged to Poland and Hungary, and as a compensation gave some ancient German lands to Poland. And the 1960s crucial decision to take Crimea away from Russia and also gave it to Ukraine. That's how the territory of Soviet Ukraine was formed. 3:05 President Putin: We cannot help but react to this real threat, especially since I would like to reiterate that Western backers they can help Ukraine with getting this weapon to create yet another threat for our country because we can see how consistently they are pumping Ukraine with weapons. The United States alone starting from 2014 transferred billions of dollars including the arm supply training personnel. In recent months, Western weapons are sent to Ukraine given ceaselessly in front of the eyes of the entire world 7:05 President Putin: Actually, as I have already said, Soviet Ukraine is the result of the Bolsheviks’ policy and can be rightfully called “Vladimir Lenin’s Ukraine.” He was its creator and architect. This is fully and comprehensively corroborated by archival documents, including Lenin’s harsh instructions regarding Donbass, which was actually shoved into Ukraine. And today the “grateful progeny” has overturned monuments to Lenin in Ukraine. They call it decommunization. You want decommunization? Very well, this suits us just fine. But why stop halfway? We are ready to show what real decommunizations would mean for Ukraine. 9:31 President Putin: Everything seemed to be working well in conditions of the totalitarian regime, and outwardly it looked wonderful, attractive and even super-democratic. And yet, it is a great pity that the fundamental and formally legal foundations of our state were not promptly cleansed of the odious and utopian fantasies inspired by the revolution, which are absolutely destructive for any normal state. 10:05 President Putin: It seems that the Communist Party leaders were convinced that they had created a solid system of government and that their policies had settled the ethnic issue for good. But falsification, misconception, and tampering with public opinion have a high cost. The virus of nationalist ambitions is still with us, and the mine laid at the initial stage to destroy state immunity to the disease of nationalism was ticking. As I have already said, the mine was the right of secession from the Soviet Union. 13:55 President Putin: Even two years before the collapse of the USSR, its fate was actually predetermined. It is now that radicals and nationalists, including and primarily those in Ukraine, are taking credit for having gained independence. As we can see, this is absolutely wrong. The disintegration of our united country was brought about by the historic, strategic mistakes on the part of the Bolshevik leaders and the CPSU leadership, mistakes committed at different times in state-building and in economic and ethnic policies. The collapse of the historical Russia known as the USSR is on their conscience. 14:39 President Putin: It was our people who accepted the new geopolitical reality that took shape after the dissolution of the USSR, and recognised the new independent states. Not only did Russia recognise these countries, but helped its CIS partners, even though it faced a very dire situation itself. This included our Ukrainian colleagues, who turned to us for financial support many times from the very moment they declared independence. Our country provided this assistance while respecting Ukraine’s dignity and sovereignty. According to expert assessments, confirmed by a simple calculation of our energy prices, the subsidised loans Russia provided to Ukraine along with economic and trade preferences, the overall benefit for the Ukrainian budget in the period from 1991 to 2013 amounted to $250 billion. 21:24 President Putin: A stable statehood has never developed in Ukraine; its electoral and other political procedures just serve as a cover, a screen for the redistribution of power and property between various oligarchic clans. Corruption, which is certainly a challenge and a problem for many countries, including Russia, has gone beyond the usual scope in Ukraine. It has literally permeated and corroded Ukrainian statehood, the entire system, and all branches of power. Radical nationalists took advantage of the justified public discontent and saddled the Maidan protest, escalating it to a coup d'état in 2014. They also had direct assistance from foreign states. According to reports, the US Embassy provided $1 million a day to support the so-called protest camp on Independence Square in Kiev. In addition, large amounts were impudently transferred directly to the opposition leaders’ bank accounts, tens of millions of dollars. 23:37 President Putin: Maidan did not bring Ukraine any closer to democracy and progress. Having accomplished a coup d'état, the nationalists and those political forces that supported them eventually led Ukraine into an impasse, pushed the country into the abyss of civil war. 26:30 President Putin: In fact, it all came down to the fact that the collapse of the Ukrainian economy was accompanied by outright robbery of the citizens of the country, and Ukraine itself was simply driven under external control. It is carried out not only at the behest of Western capitals, but also, as they say, directly on the spot through a whole network of foreign advisers, NGOs and other institutions deployed in Ukraine. They have a direct impact on all the most important personnel decisions, on all branches and levels of government: from the central and even to the municipal, on the main state-owned companies and corporations, including Naftogaz, Ukrenergo, Ukrainian Railways, Ukroboronprom, Ukrposhta , Administration of Sea Ports of Ukraine. There is simply no independent court in Ukraine. At the request of the West, the Kiev authorities gave representatives of international organizations the pre-emptive right to select members of the highest judicial bodies - the Council of Justice and the Qualification Commission of Judges. In addition, the US Embassy directly controls the National Corruption Prevention Agency, the National Anti-Corruption Bureau, the Specialized Anti-Corruption Prosecutor's Office, and the Supreme Anti-Corruption Court. All this is done under a plausible pretext to increase the effectiveness of the fight against corruption. Okay, but where are the results? Corruption has blossomed as luxuriantly, and blooms, more than ever. Are the Ukrainians themselves aware of all these managerial methods? Do they understand that their country is not even under a political and economic protectorate, but reduced to the level of a colony with a puppet regime? The privatization of the state has led to the fact that the government, which calls itself the "power of patriots", has lost its national character and is consistently leading the matter towards the complete desovereignization of the country. 31:04 President Putin: In March 2021, a new Military Strategy was adopted in Ukraine. This document is almost entirely dedicated to confrontation with Russia and sets the goal of involving foreign states in a conflict with our country. The strategy stipulates the organisation of what can be described as a terrorist underground movement in Russia’s Crimea and in Donbass. It also sets out the contours of a potential war, which should end, according to the Kiev strategists, “with the assistance of the international community on favourable terms for Ukraine.” 32:05 President Putin: As we know, it has already been stated today that Ukraine intends to create its own nuclear weapons, and this is not just bragging. Ukraine has the nuclear technologies created back in the Soviet times and delivery vehicles for such weapons, including aircraft, as well as the Soviet-designed Tochka-U precision tactical missiles with a range of over 100 kilometres. But they can do more; it is only a matter of time. They have had the groundwork for this since the Soviet era. In other words, acquiring tactical nuclear weapons will be much easier for Ukraine than for some other states I am not going to mention here, which are conducting such research, especially if Kiev receives foreign technological support. 33:47 President Putin: Foreign advisors supervise the activities of Ukraine’s armed forces and special services and we are well aware of this. Over the past few years, military contingents of NATO countries have been almost constantly present on Ukrainian territory under the pretext of exercises. The Ukrainian troop control system has already been integrated into NATO. This means that NATO headquarters can issue direct commands to the Ukrainian armed forces, even to their separate units and squads. The United States and NATO have started an impudent development of Ukrainian territory as a theatre of potential military operations. Their regular joint exercises are obviously anti-Russian. Last year alone, over 23,000 troops and more than a thousand units of hardware were involved. A law has already been adopted that allows foreign troops to come to Ukraine in 2022 to take part in multinational drills. Understandably, these are primarily NATO troops. This year, at least ten of these joint drills are planned. Obviously, such undertakings are designed to be a cover-up for a rapid buildup of the NATO military group on Ukrainian territory. This is all the more so since the network of airfields upgraded with US help in Borispol, Ivano-Frankovsk, Chuguyev and Odessa, to name a few, is capable of transferring army units in a very short time. Ukraine’s airspace is open to flights by US strategic and reconnaissance aircraft and drones that conduct surveillance over Russian territory. I will add that the US-built Maritime Operations Centre in Ochakov makes it possible to support activity by NATO warships, including the use of precision weapons, against the Russian Black Sea Fleet and our infrastructure on the entire Black Sea Coast. 36:54 President Putin: Article 17 of the Constitution of Ukraine stipulates that deploying foreign military bases on its territory is illegal. However, as it turns out, this is just a conventionality that can be easily circumvented. Ukraine is home to NATO training missions which are, in fact, foreign military bases. They just called a base a mission and were done with it. 37:16 President Putin: Kiev has long proclaimed a strategic course on joining NATO. Indeed, each country is entitled to pick its own security system and enter into military alliances. There would be no problem with that, if it were not for one “but.” International documents expressly stipulate the principle of equal and indivisible security, which includes obligations not to strengthen one's own security at the expense of the security of other states. This is stated in the 1999 OSCE Charter for European Security adopted in Istanbul and the 2010 OSCE Astana Declaration. In other words, the choice of pathways towards ensuring security should not pose a threat to other states, whereas Ukraine joining NATO is a direct threat to Russia's security 38:10 President Putin: Let me remind you that at the Bucharest NATO summit held in April 2008, the United States pushed through a decision to the effect that Ukraine and, by the way, Georgia would become NATO members. Many European allies of the United States were well aware of the risks associated with this prospect already then, but were forced to put up with the will of their senior partner. The Americans simply used them to carry out a clearly anti-Russian policy. 38:41 President Putin: A number of NATO member states are still very sceptical about Ukraine joining NATO. We are getting signals from some European capitals telling us not to worry since it will not happen literally overnight. In fact, our US partners are saying the same thing as well. “All right, then” we respond, “if it does not happen tomorrow, then it will happen the day after tomorrow. What does it change from the historical perspective? Nothing at all.” Furthermore, we are aware of the US leadership’s position and words that active hostilities in eastern Ukraine do not rule out the possibility of that country joining NATO if it meets NATO criteria and overcomes corruption. All the while, they are trying to convince us over and over again that NATO is a peace-loving and purely defensive alliance that poses no threat to Russia. Again, they want us to take their word for it. But we are well aware of the real value of these words. In 1990, when German unification was discussed, the United States promised the Soviet leadership that NATO jurisdiction or military presence will not expand one inch to the east and that the unification of Germany will not lead to the spread of NATO's military organisation to the east. This is a quote. They issued lots of verbal assurances, all of which turned out to be empty phrases. Later, they began to assure us that the accession to NATO by Central and Eastern European countries would only improve relations with Moscow, relieve these countries of the fears steeped in their bitter historical legacy, and even create a belt of countries that are friendly towards Russia. However, the exact opposite happened. The governments of certain Eastern European countries, speculating on Russophobia, brought their complexes and stereotypes about the Russian threat to the Alliance and insisted on building up the collective defence potentials and deploying them primarily against Russia. Worse still, that happened in the 1990s and the early 2000s when, thanks to our openness and goodwill, relations between Russia and the West had reached a high level. Russia has fulfilled all of its obligations, including the pullout from Germany, from Central and Eastern Europe, making an immense contribution to overcoming the legacy of the Cold War. We have consistently proposed various cooperation options, including in the NATO-Russia Council and the OSCE formats. Moreover, I will say something I have never said publicly, I will say it now for the first time. When then outgoing US President Bill Clinton visited Moscow in 2000, I asked him how America would feel about admitting Russia to NATO. I will not reveal all the details of that conversation, but the reaction to my question was, let us say, quite restrained, and the Americans’ true attitude to that possibility can actually be seen from their subsequent steps with regard to our country. I am referring to the overt support for terrorists in the North Caucasus, the disregard for our security demands and concerns, NATO’s continued expansion, withdrawal from the ABM Treaty, and so on. 43:05 President Putin: Today, one glance at the map is enough to see to what extent Western countries have kept their promise to refrain from NATO’s eastward expansion. They just cheated. We have seen five waves of NATO expansion, one after another – Poland, the Czech Republic and Hungary were admitted in 1999; Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia in 2004; Albania and Croatia in 2009; Montenegro in 2017; and North Macedonia in 2020. As a result, the Alliance, its military infrastructure has reached Russia’s borders. This is one of the key causes of the European security crisis; it has had the most negative impact on the entire system of international relations and led to the loss of mutual trust. The situation continues to deteriorate, including in the strategic area. Thus, positioning areas for interceptor missiles are being established in Romania and Poland as part of the US project to create a global missile defence system. It is common knowledge that the launchers deployed there can be used for Tomahawk cruise missiles – offensive strike systems. In addition, the United States is developing its all-purpose Standard Missile-6, which can provide air and missile defence, as well as strike ground and surface targets. In other words, the allegedly defensive US missile defence system is developing and expanding its new offensive capabilities. The information we have gives us good reason to believe that Ukraine’s accession to NATO and the subsequent deployment of NATO facilities has already been decided and is only a matter of time. We clearly understand that given this scenario, the level of military threats to Russia will increase dramatically, several times over. 45:07 President Putin: I will explain that American strategic planning documents confirm the possibility of a so-called preemptive strike at enemy missile systems. We also know the main adversary of the United States and NATO. It is Russia. NATO documents officially declare our country to be the main threat to Euro-Atlantic security. Ukraine will serve as an advanced bridgehead for such a strike. 46:00 President Putin: Many Ukrainian airfields are located not far from our borders. NATO’s tactical aviation deployed there, including precision weapon carriers, will be capable of striking at our territory to the depth of the Volgograd-Kazan-Samara-Astrakhan line. The deployment of reconnaissance radars on Ukrainian territory will allow NATO to tightly control Russia’s airspace up to the Urals. Finally, after the US destroyed the INF Treaty, the Pentagon has been openly developing many land-based attack weapons, including ballistic missiles that are capable of hitting targets at a distance of up to 5,500 km. If deployed in Ukraine, such systems will be able to hit targets in Russia’s entire European part. The flying time of Tomahawk cruise missiles to Moscow will be less than 35 minutes; ballistic missiles from Kharkov will take seven to eight minutes; and hypersonic assault weapons, four to five minutes. It is like a knife to the throat. I have no doubt that they hope to carry out these plans, as they did many times in the past, expanding NATO eastward, moving their military infrastructure to Russian borders and fully ignoring our concerns, protests and warnings. Excuse me, but they simply did not care at all about such things and did whatever they deemed necessary. Of course, they are going to behave in the same way in the future. 47:46 President Putin: Russia has always advocated the resolution of the most complicated problems by political and diplomatic means, at the negotiating table. We are well aware of our enormous responsibility when it comes to regional and global stability. Back in 2008, Russia put forth an initiative to conclude a European Security Treaty under which not a single Euro-Atlantic state or international organisation could strengthen their security at the expense of the security of others. However, our proposal was rejected right off the bat on the pretext that Russia should not be allowed to put limits on NATO activities. Furthermore, it was made explicitly clear to us that only NATO members can have legally binding security guarantees. 48:35 President Putin: Last December, we handed over to our Western partners a draft treaty between the Russian Federation and the United States of America on security guarantees, as well as a draft agreement on measures to ensure the security of the Russian Federation and NATO member states. The United States and NATO responded with general statements. There were kernels of rationality in them as well, but they concerned matters of secondary importance and it all looked like an attempt to drag the issue out and to lead the discussion astray. We responded to this accordingly and pointed out that we were ready to follow the path of negotiations, provided, however, that all issues are considered as a package that includes Russia’s core proposals which contain three key points. First, to prevent further NATO expansion. Second, to have the Alliance refrain from deploying assault weapon systems on Russian borders. And finally, rolling back the bloc's military capability and infrastructure in Europe to where they were in 1997, when the NATO-Russia Founding Act was signed. These principled proposals of ours have been ignored. 50:21 President Putin: They are again trying to blackmail us and are threatening us with sanctions, which, by the way, they will introduce no matter what as Russia continues to strengthen its sovereignty and its Armed Forces. To be sure, they will never think twice before coming up with or just fabricating a pretext for yet another sanction attack regardless of the developments in Ukraine. Their one and only goal is to hold back the development of Russia. 51:06 President Putin: I would like to be clear and straightforward: in the current circumstances, when our proposals for an equal dialogue on fundamental issues have actually remained unanswered by the United States and NATO, when the level of threats to our country has increased significantly, Russia has every right to respond in order to ensure its security. That is exactly what we will do. 51:33 President Putin: With regard to the state of affairs in Donbass, we see that the ruling Kiev elites never stop publicly making clear their unwillingness to comply with the Minsk Package of Measures to settle the conflict and are not interested in a peaceful settlement. On the contrary, they are trying to orchestrate a blitzkrieg in Donbass as was the case in 2014 and 2015. We all know how these reckless schemes ended. Not a single day goes by without Donbass communities coming under shelling attacks. The recently formed large military force makes use of attack drones, heavy equipment, missiles, artillery and multiple rocket launchers. The killing of civilians, the blockade, the abuse of people, including children, women and the elderly, continues unabated. As we say, there is no end in sight to this. Meanwhile, the so-called civilised world, which our Western colleagues proclaimed themselves the only representatives of, prefers not to see this, as if this horror and genocide, which almost 4 million people are facing, do not exist. But they do exist and only because these people did not agree with the West-supported coup in Ukraine in 2014 and opposed the transition towards the Neanderthal and aggressive nationalism and neo-Nazism which have been elevated in Ukraine to the rank of national policy. They are fighting for their elementary right to live on their own land, to speak their own language, and to preserve their culture and traditions. How long can this tragedy continue? How much longer can one put up with this? Russia has done everything to preserve Ukraine’s territorial integrity. All these years, it has persistently and patiently pushed for the implementation of UN Security Council Resolution 2202 of February 17, 2015, which consolidated the Minsk Package of Measures of February 12, 2015, to settle the situation in Donbass. Everything was in vain. Presidents and Rada deputies come and go, but deep down the aggressive and nationalistic regime that seized power in Kiev remains unchanged. It is entirely a product of the 2014 coup, and those who then embarked on the path of violence, bloodshed and lawlessness did not recognise then and do not recognise now any solution to the Donbass issue other than a military one. In this regard, I consider it necessary to take a long overdue decision and to immediately recognise the independence and sovereignty of the Donetsk People's Republic and the Lugansk People's Republic. I would like to ask the Federal Assembly of the Russian Federation to support this decision and then ratify the Treaty of Friendship and Mutual Assistance with both republics. These two documents will be prepared and signed shortly. 54:52 President Putin: We want those who seized and continue to hold power in Kiev to immediately stop hostilities. Otherwise, the responsibility for the possible continuation of the bloodshed will lie entirely on the conscience of Ukraine’s ruling regime. February 19, 2022 Overview: Western powers should drop their policy of "appeasement" toward Moscow, Ukrainian leader Volodymyr Zelensky told a security forum Saturday, as fears mount of a Russian invasion of Ukraine. Clips 13:37 Vladimir Zelensky: Ukraine has received security guarantees for abandoning the world’s third nuclear capability. We don’t have that weapon. We also have no security. 14:37 Vladimir Zelensky: Since 2014, Ukraine has tried three times to convene consultations with the guarantor states of the Budapest Memorandum. Three times without success. Today Ukraine will do it for the fourth time. I, as President, will do this for the first time. But both Ukraine and I are doing this for the last time. I am initiating consultations in the framework of the Budapest Memorandum. The Minister of Foreign Affairs was commissioned to convene them. If they do not happen again or their results do not guarantee security for our country, Ukraine will have every right to believe that the Budapest Memorandum is not working and all the package decisions of 1994 are in doubt. February 18, 2022 Overview: Following talks with NATO allies, President Biden provided an update on Russia-Ukraine tensions and international efforts to resolve the crisis. Clips 3:04 President Biden: You know, look, we have reason to believe the Russian forces are planning to and intend to attack Ukraine in the coming week — in the coming days. We believe that they will target Ukraine’s capital, Kyiv, a city of 2.8 million innocent people.War posturing - Biden US provided record security assistance to Ukraine 4:00 President Biden: This past year, the United States provided a record amount of security assistance to Ukraine to bolster its defensive — $650 million, from Javelin missiles to ammunition. And we also previously provided $500 million in Ukrai- — in humanitarian aid and economic support for Ukraine. And earlier this week, we also announced an additional sovereign loan guarantee of up to $1 billion to strengthen Ukraine’s economic resilience. 7:24 President Biden: Well, I don’t think he is remotely contemplating nuclear — using nuclear weapons. But I do think it’s — I think he is focused on trying to convince the world that he has the ability to change the dynamics in Europe in a way that he cannot. February 15, 2022 Overview: President Biden gave an update on tensions between Russia and Ukraine, calling for diplomacy to resolve tensions. Clips 1:47 President Biden: The United States has put on the table concrete ideas to establish a security environment in Europe. We’re proposing new arms control measures, new transparency measures, new strategic stability measures. These measures would apply to all parties — NATO and Russia alike. 2:14 President Biden: We will not sacrifice basic principles, though. Nations have a right to sovereignty and territorial integrity. They have the freedom to set their own course and choose with whom they will associate. 3:17 President Biden: And the fact remains: Right now, Russia has more than 150,000 troops encircling Ukraine in Belarus and along Ukraine’s border. An invasion remains distinctly possible. That’s why I’ve asked several times that all Americans in Ukraine leave now before it’s too late to leave safely. It is why we have temporarily relocated our embassy from Kyiv to Lviv in western Ukraine, approaching the Polish border. 4:12 President Biden: The United States and NATO are not a threat to Russia. Ukraine is not threatening Russia. Neither the U.S. nor NATO have missiles in Ukraine. We do not — do not have plans to put them there as well. 4:26 President Biden: To the citizens of Russia: You are not our enemy. And I do not believe you want a bloody, destructive war against Ukraine — a country and a people with whom you share such deep ties of family, history, and culture. 5:52 President Biden: Today, our NATO Allies and the Alliance is as unified and determined as it has ever been. And the source of our unbreakable strength continues to be the power, resilience, and universal appeal of our shared democratic values. Because this is about more than just Russia and Ukraine. It’s about standing for what we believe in, for the future we want for our world. 7:25 President Biden: And when it comes to Nord Stream 2, the pipeline that would bring natural gas from Russia to Germany, if Russia further invades Ukraine, it will not happen. 7:35 President Biden: While I will not send American servicemen to fight Russia in Ukraine, we have supplied the Ukrainian military with equipment to help them defend themselves. We have provided training and advice and intelligence for the same purpose. 7:50 President Biden: And make no mistake: The United States will defend every inch of NATO territory with the full force of American power. An attack against one NATO country is an attack against all of us. And the United States commitment to Article 5 is sacrosanct. Already, in response to Russia’s build-up of troops, I have sent additional U.S. forces to bolster NATO’s eastern flank. Several of our Allies have also announced they’ll add forces and capabilities to ensure deterrence and defense along NATO’s eastern flank. We will also continue to conduct military exercises with our Allies and partners to enhance defensive readiness. And if Russia invades, we will take further steps to reinforce our presence in NATO, reassure our Allies, and deter further aggression. 9:12 President Biden: I will not pretend this will be painless. There could be impact on our energy prices, so we are taking active steps to alleviate the pressure on our own energy markets and offset rising prices. We’re coordinating with major enersy [sic] — energy consumers and producers. We’re prepared to deploy all the tools and authority at our disposal to provide relief at the gas pump. And I will work with Congress on additional measures to help protect consumers and address the impact of prices at the pump. December 7, 2021 Overview: Victoria Nuland, the undersecretary of state for political affairs, testified at a Senate Foreign Relations Committee hearing on U.S. policy toward Russia. She addressed President Biden’s earlier call with Russian President Vladimir Putin and said that Russia would suffer severe consequences if it attacked Ukraine. Other topics included the use of sanctions if Russia invades Ukraine, the cooperation of NATO and U.S. allies, Russia’s use of energy during conflict, and the Nord Stream 2 Pipeline Clips 10:42 Victoria Nuland: Since 2014 The United States has provided Ukraine with $2.4 billion in security assistance including $450 million this year alone. 30:55 Sen. Todd Young (R-IN): President Putin and Foreign Minister Lavrov have repeatedly indicated that they seek to deny any potential path to NATO membership for Ukraine and other Eastern European countries. Does the administration view this demand is a valid issue for negotiation? Victoria Nuland: No we do not and President Biden made that point crystal clear to President Putin today that the issue of who joins NATO is an issue for NATO to decide it's an issue for applicant countries to decide that no other outside power will or may have a veto or a vote in those decisions. January 23, 2018 Clips 24:30 Former Vice President Biden: I’ll give you one concrete example. I was—not I, but it just happened to be that was the assignment I got. I got all the good ones. And so I got Ukraine. And I remember going over, convincing our team, our leaders to—convincing that we should be providing for loan guarantees. And I went over, I guess, the 12th, 13th time to Kiev. And I was supposed to announce that there was another billion-dollar loan guarantee. And I had gotten a commitment from Poroshenko and from Yatsenyuk that they would take action against the state prosecutor. And they didn’t. So they said they had—they were walking out to a press conference. I said, nah, I’m not going to—or, we’re not going to give you the billion dollars. They said, you have no authority. You’re not the president. The president said—I said, call him. (Laughter.) I said, I’m telling you, you’re not getting the billion dollars. I said, you’re not getting the billion. I’m going to be leaving here in, I think it was about six hours. I looked at them and said: I’m leaving in six hours. If the prosecutor is not fired, you’re not getting the money. Well, son of a bitch. (Laughter.) He got fired. And they put in place someone who was solid at the time. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
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Feb 13, 2022 • 1h 46min

CD247: BIF: The Growth of US Railroads

The infrastructure law provides the most significant investment in passenger rail in U.S. history, but substantial hurdles - including a powerful cartel - stand firmly in the way of a real national network. In this episode, learn the ways the infrastructure law paves the way for a better future for passenger rail along with the significant obstacles that it failed to address. Executive Producer: Alex Smith Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish YouTube Video Contributors to Supply Chain Issues Matthew Jinoo Buck. February 4, 2022. The American Prospect. Merriam-Webster.com. 2022. January 6, 2020. The Houston Chronicle. Passenger and Freight Rail: The Current Status of the Rail Network and the Track Ahead. October 21, 2020. 116th Cong. U.S. Internal Revenue Service. December 31, 2019. Dangers of Monster Trains and Rail Profiteering Aaron Gordon. Mar 22, 2021. Vice. U.S. National Transportation Safety Board. Dec 29, 2020. Marybeth Luczak. Nov 30, 2020. Railway Age. U.S. Government Accountability Office. May 30, 2019. Christina M. Rudin-Brown, Sarah Harris, and Ari Rosberg. May 2019. Accident Analysis and Prevention. Jessica Murphy. Jan 19, 2018. BBC. Eric M. Johnson. Dec 6, 2017. Reuters. Cumberland Times-News. Aug 12, 2017. The Tribune Democrat. Jeffrey Alderton. Aug 5, 2017. The Tribune Democrat. Jeffrey Alderton. Aug 3, 2017. The Tribune Democrat. New Jersey Department of Health. Revised June 2011. Stephen Joiner. Feb 11, 2010 Popular Mechanics. Lobbying and Corruption 2020. Open Secrets. 2020. Senate.gov. 2020. Open Secrets. 2018. Open Secrets. 2020. Senate.gov. What you really pay for TV Gavin Bridge. Oct 27, 2020. Variety. Laws Sponsor: Rep. Peter DeFazio (D-OR) Status: Became Public Law No. 117-58 Law Outline Authorizes appropriations for Federal-Aid for highways at between $52 billion and $56 billion per year through fiscal year 2026 (over $273 billion total). Authorizes $300 million for for 2022, which increases by $100 million per year (maxing out at $700 million in 2026) Authorizes between $25 million and $30 million per year for "community resilience and evacuation route grants" on top of equal amounts for "at risk coastal infrastructure grants" Authorizes a total of $6.53 billion (from two funds) for the bridge investment program Caps the annual total funding from all laws (with many exceptions) that can be spent on Federal highway programs. Total through 2026: $300.3 billion Allows money from the surface transportation block grant program to be used for "planning and construction" of projects that "facilitate intermodel connections between emerging transportation technologies", specifically naming the hyperloop For projects that cost $100 million or more, before entering into a contract with a private company, the government partner has to conduct a "value for money analysis" of the partnership. Three years after a project is opened to traffic, the government partner has to review the compliance of the private company and either certify their compliance or report to the Secretary of Transportation the details of the violation. The certifications or violation notifications must be publicly available "in a form that does not disclose any proprietary or confidential business information." Restructures/eliminates offices at the Department of Transportation to create an Office of Multimodal Freight Infrastructure and Policy The person in charge will be appointed by the President and has to be confirmed by the Senate Authorizes "such sums as are necessary" Authorizes $2 billion per year until 2026 ($10 billion total) on projects that cost at least $100 million that include highways, bridges, freight rail, passenger rail, and public transportation projects. The Federal government will pay a maximum of 80% of the project costs. Authorizes $1.5 billion per year until 2026 ($7.5 billion) (which will expire after 3 years) for grants for local transportation projects in amounts between $1 million and $25 million for projects that include highway, bridge, public transportation, passenger and freight rail, port infrastructure, surface transportation at airports, and more. Authorizes $800 million per year through 2026 ($4 billion) for grants for projects that replace, remove, or repair culverts (water channels) that improve or restore passages for fish. Authorizes appropriations for Amtrak in the Northeast Corridor at between $1.1 billion and $1.57 billion per year through 2026 ($6.57 billion total). Authorizes appropriations for Amtrak in the National Network at between $2.2 billion and $3 billion per year through 2026 ($12.65 billion total). Authorizes $1 billion per year through 2026 ($5 billion total) for rail infrastructure safety improvement grants Authorizes $500 million per year through 2016 ($2.5 billion total) for the elimination of railroad crossings Authorizes $1.5 billion per year through 2026 ($7.5 billion total) for grants to states to expand intercity passenger rail grants Changes the goal of cooperation between Amtrak, governments, & other rail carriers from "to achieve a performance level sufficient to justify expending public money" to "in order to meet the intercity passenger rail needs of the United States" and expands the service areas beyond "urban" locations. Changes the goals of Amtrak to include... "Improving its contracts with rail carriers over whose tracks Amtrak operates." "Offering competitive fares" "Increasing revenue from the transportation of mail and express" "Encourages" Amtrak to make agreement with private companies that will generate additional revenue Requires that at least one Amtrak ticket agent works at each station, unless there is a commuter rail agent who has the authority to sell Amtrak tickets Removes the requirement that Amtrak's food and beverage service financially break even in order to be offered on its trains Creates a working group to make recommendations about how to improve the onboard food and beverage service The report must be complete within one year of the working group's formation After the report is complete, Amtrak must create a plan to implementing the working group's recommendations and/or tell Congress in writing why they will not implement the recommendations The plan can not include Amtrak employee layoffs Requires Amtrak to prohibit smoking - including electronic cigarettes - on all Amtrak trains Prohibits Amtrak from cutting or reducing service to a rail route if they receive adequate Federal funding for that route Amtrak will not be allowed to privatize the jobs previously performed by laid off union workers. Authorizes $15 million for an Amtrak study on bringing back long distance rail routes that were discontinued. Extends the amount of time the government will pay the operating costs of Amtrak or "any rail carrier" partnered with Amtrak or a government agency that provides passenger rail service from 3 years to 6 years, and pays higher percentages of the the costs. Creates a program to eliminate highway-rail crossings where vehicles are frequently stopped by trains Authorizes the construction on tunnels and bridges Requires the government agency in charge of the project to "obtain the necessary approvals from any impacted rail carriers or real property owners before proceeding with the construction of a project" Each grant will be for at least $1 million each The Federal government will pay no more than 80% of the project's cost Authorizes up to 10 grants per year valued at a maximum of $1 million each to plan and promote new Amtrak routes The grant recipient will have to match the grant by at least 50% of the eligible expenses The Secretary of Transportation will create a program for public entities to plan for expanded intercity passenger rail corridors (which are routes that are less than 750 miles), operated by Amtrak or private companies. When developing plans for corridors, the Secretary has to "consult" with "host railroads for the proposed corridor" The Administration of the Federal Railroad Administration would establish a "3 year blocked crossing portal" which would collect information about blocked crossing by trains from the public and first responders and provide every person submitting the complaint the contact information of the "relevant railroad" and would "encourage" them to complain to them too. Information collected would NOT be allowed to be used for any regulatory or enforcement purposes Reports to Congress will be created using the information collected The Secretary of Transportation will have to issue a rule requiring that all carriers that transport human passengers have an emergency lighting system that turns on when there is a power failure. Requires the Administrator of the Federal Railroad Administration to start pilot programs that were supposed to be conducted no later than 2010, which will test railroad employee scheduling rules designed to reduce employee fatigue. They will test... Assigning employees to shifts with 10 hours advance notice For employees subject to being on-call, having some shifts when those employees are not subject to being on-call. If the pilot programs have not begun by around March of 2023, a report will have to be submitted to Congress explaining the challenges, including "efforts to recruit participant railroads" The Comptroller General will conduct a study to determine the annual operation and maintenance costs for positive train control. Requires the Secretary of Transportation to provide notice and an opportunity for a hearing to "persons" who violate regulations requiring railroads to report information about railroad crossings. Eliminates the minimum $500 fine for violating the regulations Allows the Attorney General to take the railroad to court to collect the penalty but prohibits the amount of the civil penalty from being reviewed by the courts. Allows, but does not require, the Secretary of Transportation to create regulations governing the noise levels of trains that exceed 160 mph. Effective 3 years after the regulations are complete (maximum 5 years after this becomes law), freight cars will be prohibited from operating within the United States if it has sensitive technology originating from or if more than 15% of it is manufactured in... "A country of concern" (which is defined as "). Countries on the nonmarket economy list include... Armenia Azerbaijan Belarus China Georgia Kyrgyz Republic Moldova Tajikistan Turkmenistan Uzbekistan Vietnam A country identified by the United States Trade Representative on its , which in 2020 included... China Indonesia India Algeria Saudi Arabia Russia Ukraine Argentina Chile Venezuela State owned enterprises The Secretary of Transportation can assess fines between $100,000 and $250,000 per freight car. A company that has been found in violation 3 times can be kicked out of the United States transportation system until they are in compliance and have paid all their fines in full. These rules will apply regardless of what was agreed to in the USMCA trade agreement. 180 days after this becomes law, all railroad mechanics will be subject to drug testing, which can be conducted at random. Bills Sponsor: Rep. Don Young (R-AK) Status: Referred to Subcommittee on Railroads, Pipelines, and Hazardous Materials 03/14/2019 Hearings , Subcommittee on Railroads, Pipelines, and Hazardous Materials December 9, 2021 During the hearing, witnesses discussed plans for expanding intercity passenger rail in their states, regions, and networks, and how the bipartisan Infrastructure Investment and Jobs Act, which was recently signed into law, will support these efforts. Witnesses: Stephen Gardner, President, Amtrak David Kim, Secretary, California State Transportation Agency Kevin Corbett, President and CEO of New Jersey Transit, Co-Chair, Northeast Corridor Commission, On behalf of Northeast Corridor Commission Julie White, Deputy Secretary for Multimodal Transportation, North Carolina Department of Transportation, Commission Chair, Southeast Corridor Commission, On behalf of the North Carolina Department of Transportation and the Southeast Corridor Commission Ms. Donna DeMartino, Managing Director, Los Angeles – San Diego – San Luis Obispo Rail Corridor Agency Knox Ross, Mississippi Commission and Chair of the Southern Rail Commission Clips Rep. Rick Crawford: Finally, any potential expansion of the Amtrak system must include the full input of the freight railroads on capacity and track sharing issues. The ongoing supply chain crisis only further emphasizes the value of freight railroads and efficiently moving goods across the nation. The important work the freight railroads cannot be obstructed. Rep. Peter DeFazio The law is pretty clear: preference over freight transportation except in an emergency. Intercity and commuter rail passenger transportation provided for Amtrak has preference over freight transportation and using a rail line junction crossing unless the board orders otherwise under this subsection. Well, obviously that has not been observed. Stephen Gardner: With the $66 billion provided to the Federal Railroad Administration and Amtrak we and our partners can finally have the chance to renew, improve or replace antiquated assets like the century old bridges and tunnels in the Northeast, inaccessible stations around the nation, and our vintage trains. Stephen Gardner: Additionally, we'll continue to work collaboratively with our partners where they see value in working with other parties to deliver parts of their service and with new railroad entities that aim to develop or deliver their own service. We simply ask that key railroad laws like the Railway Labor Act and railway retirement apply to new entrants, that the federal government gets equity and accountability for investments it makes in private systems, and that any new services create connections with Amtrak's national network Stephen Gardner: We've been working very closely with a variety of host railroads on opportunities to expand, notably Burlington Northern Santa Fe and our work to expand the Heartland Flyer service between Texas and Oklahoma and potentially extend that North to Wichita, Newton, in Colorado along the front range also with BNSF, to look at opportunities there. With Canadian Pacific we've been having really good conversations about launching a new service between the Twin Cities, Milwaukee and Chicago. Similarly, I think there's opportunities for that Baton Rouge to New Orleans service that Mr. Ross mentioned. Rep. Chuy Garcia: You've each had different experiences with freight railroads as the host railroad for your respective services. What can Congress do to help you as you discuss expanding and improving passenger rail service with your freight railroad? You'll have about 15 seconds each. Knox Ross: Congressman, thank you. I think it's enforcing the will of Congress and the law that set up Amtrak in the beginning is, as the Chairman talked about, in the beginning, that people have a preference over freight. Now we understand that we all have to work together to do that. But we think there are many ways that Amtrak and other other hosts can work together with the fright to get this done, but the law has to be enforced. Julie White: I would say that the money in the IIJA is going to be really important as we work, for example, on the S Line it is an FRA grant that enables us to acquire that line from CSX and enables us to grow freight rail on it at the same time as passenger. Rep. Tim Burchett: Also understand that Amtrak is planning to either expand or build new rail corridors in 26 states across the country over the next 15 years and I was wondering: what makes you think Amtrak will turn a profit in any of those communities? Stephen Gardner: But I would be clear here that our expectation is that these corridors do require support from states and the federal government, that they produce real value and support a lot of important transportation needs. But we measure those not necessarily by the profit of the farebox, so to speak, even though Amtrak has the highest farebox recovery of any system in the United States by far in terms of rail systems, we believe that Amtrak mission is to create mobility, mobility that creates value. We do that with as little public funding as we can, but the current services do require support investment and I think that's fair. All transportation modes require investment. Rep. Tim Burchett: Since you mentioned that you needed more funding down the line, don't you think it'd be better to make your current service corridors more profit -- or just profitable before you build new ones in other parts of the country? , Subcommittee on Railroads, Pipelines, and Hazardous Materials May 6, 2021 This hearing featured twelve witnesses from a range of perspectives, exploring the opportunities and limitations associated with high-speed rail and emerging technologies, including regulatory oversight, technology readiness, project costs, and available federal resources. Witnesses: John Porcari, Former Deputy Secretary of the US Department of Transportation Rachel Smith, President and CEO of the Seattle Metropolitan Chamber of Commerce Phillip Washington, CEO of the Los Angeles County Metropolitan Transportation Authority Danielle Eckert, International Representative for the International Brotherhood of Electrical Workers Carbett "Trey" Duhon III, Judge in Waller County, TX Andy Kunz, President and CEO of the US High Speed Rail Association Carlos Aguilar, President and CEO of Texas Central High Speed Rail William Flynn, CEO of Amtrak Josh Giegel, CEO and Co-Founder of Virgin Hyperloop Andres de Leon, CEO of Hyperloop Transportation Technologies Michal Reininger, CEO of Brightline Trains Wayne Rogers, Chairman and CEO of Northeast Maglev Clips 8:37 - 8:48 Rep. Rick Crawford: Rail is also considered one of the most fuel efficient ways to move freight. On average freight rail can move one ton of freight over 470 miles on one gallon of fuel. Rep. Peter DeFazio: You know we have put aggregate with the essentially post World War Two, mostly the Eisenhower program, $2 trillion -- trillion -- into highways, invested by the federal government, a lot of money. But post World War Two $777 billion into aviation, airports, runways, air traffic control etc. And, and we have put about $90 billion total into rail. John Porcari: As I evaluated ways to increase capacity in the Baltimore-New York City corridor, these were my choices: I could add air capacity between BWI Thurgood Marshall Airport and New York with 90% federal funding for runway and taxiway improvements, I could add highway capacity on I-95 to New York with 80% federal funding, or add passenger rail capacity with zero federal funding for that 215 mile segment. A passenger rail trip makes far more sense than driving or flying, yet passenger rail capacity was the least likely alternative to be selected. So if you wonder why we have the unbalanced transportation system we have today, follow the money. John Porcari: It's an extraordinary statement of state priorities that the California High Speed Rail Authority's 2020 Business Plan anticipates 85% of its funding from state sources and only 15% federal funding for this project of national and regional significance. This is a remarkable state financial commitment and a clear declaration of the state's project priorities. Yet there's no ongoing sustained federal financial partner for this multi year program of projects. 23:54 - 24:28 John Porcari: To match the people carrying capacity of phase one of the high speed rail system, California would need to invest $122 to $199 billion towards building almost 4200 highway lane miles, the equivalent of a new six lane highway and the construction of 91 new airport gates and two new runways. The San Francisco-Los Angeles air loop is already the ninth busiest in the world, and the busiest air route in America. Doesn't it make sense to prioritize this finite and expensive airport capacity for trans continental and international flights? 24:28 - 24:40 John Porcari: For California the 120 to 209 billion of required highway and airport capacity as an alternative to high speed rail is double the 69 to 99 billion cost estimate for phase one of the high speed rail system. 25:05 - 25:18 John Porcari: Providing real transportation choices at the local and state level requires the establishment of a Passenger Rail Trust Fund on par with our Highway Trust Fund and Airport and Airway Trust Fund. 48:00 - 48:23 Trey Duhon: Texas Central promised this project was privately financed, and everything they've done today, including the EIS was based on that. So we say let it live or die in the free market and invest our tax dollars in more equitable transportation solutions. We should not have to pay for another train to nowhere while having our communities destroyed by the very tax dollars that we work hard to contribute. 49:48 - 50:42 Andy Kunz: High Speed Rail can unlock numerous ridership opportunities. Essential workers like teachers, police and firemen in the high price Silicon Valley could find affordable housing options with a short train ride to Merced or Fresno in California's Central Valley. Residents of Eugene, Oregon could access jobs in Portland's tech sector or booming recreational industry with a 35 minute commute. A Houston salesperson could prepare for an important client meeting in Dallas with dedicated Wi Fi and ample workspace while gliding past the notorious congestion on I-45. A college student in Atlanta could make it home for Thanksgiving in Charlotte while picking up grandma along the way in Greenville, South Carolina. International tourists visiting Disney World in Orlando could extend their vacation with a day trip to the Gulf beaches of the Greater Tampa Bay area. 51:41 - 54:58 Andy Kunz: High Speed Rail has an unmatched track record of safety. Japan, with the world's first high speed rail network, has carried millions of people over 50 years without a single fatality, in comparison as many as 40,000 Americans are killed every year in auto accidents on our highways. 52:22 - 52:45 Andy Kunz: China has invested over a trillion dollars in high speed rail, allowing them to build a world class 22,000 mile network in 14 years. Not taking a pause, China plans to construct another 21,000 miles of track over the next nine years. Modern infrastructure like this fuels China's explosive economic growth, making it challenging for us to compete with them in the 21st century. 52:46 - 53:10 Andy Kunz: On the other side of the globe, the United Kingdom is currently doubling their rail network with $120 billion investment. France has invested over $160 billion in constructing their system. Spain's 2000 mile High Speed Rail Network is the largest in Europe, costing more than 175 billion. These are considerable investments by nations that are similar in size to Texas. 1:08:00 - 1:09:00 Rep. Peter DeFazio: Are you aware of any high speed rail project in the world that isn't government subsidized? I know, Virgin in, you know, in Great Britain says, well, we make money. Yeah, you make money. You don't have to maintain the rail, the government does that, all you do is put a train set on it and run it. John Porcari: Yeah, that's a really important point, Mr. Chairman, virtually every one that I'm aware of in the world has had a very big public investment in the infrastructure itself, the operation by a private operator can be very profitable. I would point out that that is no different, conceptually from our airways system, for example, where federal taxpayer investments make possible the operations of our airlines, which in turn are profitable and no different than our very profitable trucking industry in the US, which is enabled by the public infrastructure investment of the highway system itself. 1:09:46 - 1:10:37 Philip Washington: The potential is very, very good to make that connection with the private railroad. And actually that is the plan. And we are working with that, that private railroad right now to do that. And that connection with the help of some twin bore tunnel will allow train speeds to be at anywhere from 180 to 200 miles an hour, getting from that high desert corridor to Los Angeles. And so it's a it's a huge, huge effort. It links up with high speed rail from the north as well, with the link up coming into Union Station as well. So I think the potential to link up both of these are very, very great. And we're working with both entities. 1:11:31 - 1:12:13 Philip Washington: Well one of our ideas very quickly is right now we have as you know, Mr. Chairman, assembly plants, assembly plants all over the country what we are proposing is a soup to nuts, all included manufacturing outfit in this country that manufactures trains from the ground up, forging steel, all of those things. So we have proposed an industrial park with suppliers on site as well to actually build again from the ground up, rail car passenger rail car vehicles and locomotives. It is the return of manufacturing to this country as we see it. 1:21:16 - 1:21:50 John Porcari: We have 111 year old tunnel in New York, we have a B&P tunnel in Baltimore, that Civil War era. Those are not the biggest obstacles. It is more a question of will. What we want to do as a country in infrastructure, we do, and we've never made rail, really the priority that that I think it needs to be. And we've never provided meaningful choices for the states to select rail and build a multi year rail program because we don't have the funding part of it. 1:21:55 - 1:22:19 John Porcari: Our passenger rail system in the US is moving from a survival mode to a growth mode. And I think that's a very healthy thing for the country. Whether you're talking about our cross country service, one of the coastal corridors or the Midwest service, all of that is really important. In just the same way we built the interstates, city pairs aggregating into a national system, we can really do that with the passenger rail system if we have the will. 1:27:13 - 1:27:41 Rep. Michelle Steel: My constituents are already taxed enough, with California state and local taxes and skyrocketing gas prices making it unaffordable to live. I just came back from Texas, their gas price was $2 something and we are paying over $4 in California. We must preserve our local economy by lowering taxes not raising them. And we must not continue throwing tax dollars into a high speed money pit. 1:30:53 - 1:31:11 Trey Duhon: The folks in Waller county the folks that I know, a family of four is not going to pay $1,000 To ride a train between Houston and Dallas, when they can get there on a $50 tank of gas an hour and a half later. It's just not going to happen. So it's not a mass transit solution, at least not for this corridor. 1:48:56 - 1:49:25 Andy Kunz: The other big thing that hasn't been mentioned is the the cost of people's time and waste sitting stuck in traffic or stuck in airports. It's estimated to be several 100 billion dollars a year. And then as a business person, time is money. So if all your people are taking all day to get anywhere your entire company is less competitive, especially against nations that actually have these efficient systems, and then they can out compete us 2:03:52 - 2:04:13 Seth Moulton: And I would just add, you know, we build high speed rail, no one's gonna force you to take it. You have that freedom of choice that Americans don't have today and yet travelers all around the world have. I don't understand why travelers in China should have so much more freedom than we do today. In America, high speed railway would rapidly rectify that 3:01:09 - 3:01:27 Josh Giegel: In 2014 I co-founded this company in a garage when Hyperloop was just an idea on a whiteboard. By late 2016 We began construction of our first full system test set, dev loop, north of Las Vegas. To date we've completed over 500 tests of our system. 3:01:38 - 3:01:48 Josh Giegel: Today we have approximately 300 employees and are the leading Hyperloop company in the world and the only company, the only company to have had passengers travel safely in a Hyperloop. 3:01:48 - 3:02:33 Josh Giegel: Hyperloop is a high speed surface transportation system. Travel occurs within a low pressure enclosure equivalent to 200,000 feet above sea level, in a vehicle pressurized to normal atmospheric conditions, much like a commercial aircraft. This, along with our proprietary magnetic levitation engine, allows us to reach and maintain airline speeds with significantly less energy than other modes of transportation. Not only is Hyperloop fast, it's a high capacity mass transit system capable of comfortably moving people and goods at 670 miles per hour with 50,000 passengers per hour per direction, on demand and direct to your destination, meaning no stops along the way. 3:02:54 - 3:02:58 Josh Giegel: We achieve all this on a fully electric system with no direct emissions. 3:11:34 - 3:11:53 Mike Reininger: Since our 2018 launch in Florida, we operate the only private high speed system in the US, showcasing the potential of American high speed passenger rail. We carried more than a million passengers in our first full year and learned a lot that is worth sharing from the investment of over $4 billion over the last 10 years. 3:12:45 - 3:12:57 Mike Reininger: We use existing road alignments and infrastructure corridors to leverage previous investments, reduce environmental impacts, lower costs, and speed execution as a basis for profitability. 3:13:00 - 3:13:28 Mike Reininger: In 2022, we will complete the extension into the Orlando International Airport, making our total route 235 miles, linking four of the largest cities in America's third largest state. 400 million annual trips occur between these cities today, 95% of them by car. By upgrading a freight railway first built in the 1890s and building along an Express Highway, we leveraged 130 years of previous investment to support our 21st century service. 3:13:31 - 3:13:51 Mike Reininger: Brightline West will connect Las Vegas to Los Angeles, where today 50 million annual trips and over 100 daily flights occur. Traveling on trains capable of speeds of 200 miles an hour using the I-15 corridor, but cutting the drive time in half, Brightline West's better option expects to serve 11 million annual riders. 3:14:56 - 3:15:08 Mike Reininger: Consider allowing private entities to become eligible parties for FRA grant programs by partnering with currently eligible applicants as a simple way to stretch direct government investment. 3:29:39 - 3:29:54 Rep. Rick Crawford: Amtrak announced plans to expand its routes including to several small cities where there doesn't appear to be enough demand or population to warrant those new lines. Can you guarantee that those new routes will be self sustaining and turn a profit or will they lose money? 3:38:42 - 3:38:55 Bill Flynn: 125 miles an hour on existing track infrastructure is high speed. The newest Acelas we ordered will have a top speed of 186 miles an hour. 3:36:46 - 3:37:05 Rep. Seth Moulton: What is the top speed of the Acela service? Bill Flynn: The Acela service in the southern network, Washington to New York, top speeds 135 miles an hour, and then in New York to Boston top speed of 150 miles an hour across different segments of the track. 4:11:57 - 4:12:30 Bill Flynn: When we think about NEPA and the other permitting processes that take place, and then ultimately into construction, on many major projects, we're talking a decade or more. So without the visibility and predictability and the certainty of funding, these projects are all affected, they ultimately become more high cost, and they take longer than they should. So if I were to recommend one policy action, creating a trust fund, or trust fund like structure, for intercity passenger rail would be key. , Subcommittee on Railroads, Pipelines, and Hazardous Materials March 10, 2021 The hearing explored the importance of rail to the U.S. economy and as a tool to mitigate climate change. Witnesses: Shannon Valentine, Secretary of Transportation, The Commonwealth of Virginia Caren Kraska, President/Chairman, Arkansas & Missouri Railroad Greg Regan, President, Transportation Trades Department, AFL-CIO Tom Williams, Group Vice President for Consumer Products, BNSF Railway Clips 18:17 - 18:50 Shannon Valentine: One of the worst rail bottlenecks, mentioned by Chairman DeFazio, along the east coast is at the Potomac River between Virginia and DC and it's called the long bridge which is owned by CSX. The bridge carries on passenger, commuter, and freight rail, nearly 80 trains a day and is at 98% capacity during peak periods. Due to these constraints, Virginia has been unable to expand passenger rail service, even though demand prior to the pandemic was reaching record highs. 18:50 - 19:42 Shannon Valentine: Virginia has been engaged in corridor planning studies, one of which was the I-95 corridor, which as you all know, is heavily congested. Even today as we emerge from this pandemic, traffic has returned to 90% of pre-pandemic levels. Through this study, we learned that adding just one lane in each direction for 50 miles would cost $12.5 billion. While the cost was staggering, the most sobering part of the analysis was that by the time that construction was complete, in 10 years, the corridor would be just as congested as it is today. That finding is what led Virginia to a mode that could provide the capacity at a third of the cost. 20:34 - 20:43 Shannon Valentine: According to APTA rail travel emits up to 83% fewer greenhouse gases than driving and up to 73% fewer than flying. 20:58 - 21:22 Shannon Valentine: Benefits can also be measured by increased access to jobs and improving the quality of life. The new service plan includes late night and weekend service because many essential jobs are not nine to five Monday through Friday. That is why we work to add trains leaving Washington in the late evening and on weekends, matching train schedules to the reality of our economy. 52:23 - 53:06* Rep. Peter DeFazio: I am concerned particularly when we have some railroads running trains as long as three miles. And they want to go to a single crew for a three mile long train. I asked the the former head of the FRA under Trump if the train broke down in Albany, Oregon and it's blocking every crossing through the city means no police, no fire, no ambulance, how long it's going to take the engineer to walk three miles from the front of the train to, say, the second car from the rear which is having a brake problem. And he said, Well, I don't know an hour. So you know there's some real concerns here that we have to pursue. 1:23:25 - 1:24:15 Shannon Valentine: When we first launched the intercity passenger rail, Virginia sponsored passenger rail, back in 2009, it really started with a pilot with $17 million for three years from Lynchburg, Virginia into DC into the new Northeast Corridor. And, and I had to make sure that we had 51,000 riders and we didn't know if we were going to be able to sustain it. And in that first year, we had 125,000 passengers. It always exceeded expectations for ridership and profitability. And today, that rail service which we now extend over to Roanoke, and we're working to get it to Blacksburg Christiansburg is really one of our most profitable rail services. In fact, probably in the country. It doesn't even need a subsidy because they're able to generate that kind of ridership. 2:10:21 - 2:12:11 Shannon Valentine: Our project, in my mind, is really the first step in creating a southeast high speed corridor, we have to build the bridge. In order to expand access, we need to be able to begin separating passenger and freight. And even before that is able to occur, building signings and creating the ability to move. We took a lot of lessons from a study called the DC to RDA again, it's the first part of that high speed southeast corridor. For us, it was recommended that we take an incremental approach rather than having a large 100 billion dollar project we're doing in increments. And so this is a $3.7 billion which is still going to help us over 10 years create hourly service between Richmond and DC. It was recommended that we use existing infrastructure and right of way so in our negotiations with CSX, we are acquiring 386 miles of right of way and 223 miles of track. We are also purchasing as part of this an S line. It's abandoned. It goes down into Ridgeway, North Carolina from Petersburg, Virginia, just south of Richmond. Because it's abandoned, we have a lot of opportunity for development for future phases or even higher speed rail. And we actually included part of Buckingham branch, it's an East West freight corridor that we would like to upgrade and protect for, for East West connection. All of these were incremental steps using existing right of way and tracks and achieving higher speeds where it was achievable. , Subcommittee on Railroads, Pipelines, and Hazardous Materials November 18, 2020 Witnesses: Ann D. Begeman, Chairman, Surface Transportation Board Martin J. Oberman, Vice Chairman, Surface Transportation Board Romayne C. Brown, Chair of the Board of Directors, Metra Stephen Gardner, Senior Executive Vice President, Amtrak Ian Jefferies, President and Chief Executive Officer, Association of American Railroads Randal O’Toole, Senior Fellow, Cato Institute Paul Skoutelas, President and Chief Executive Officer, American Public Transportation Association Clips 27:31 - 27:59 Daniel Lipinski: Unlike Amtrak, Metra and other commuter railroads do not have a statutory federal preference prioritizing commuter trains over freight trains. Additionally, commuter railroads generally do not have standing to bring cases before the STB. Therefore, commuter railroads have very limited leverage when it comes to trying to expand their service on freight rail lines and ensuring that freight railroads Do not delay commuter trains. 35:42 - 36:27 Rep. Peter DeFazio: In fact, Congress included provisions to fix Amtrak on time performance in 2008. That is when PRIA added a provisions directing the FRA and Amtrak to work to develop on time performance metric standards to be used as a basis for an STB investigation. Unfortunately, those benefits haven't been realized. It's been 12 years since PRIA was passed. If our eyes metric and standards for on time performance were published this last Monday 12 years later, for the second time, and after this long and unacceptable delay, I look forward to seeing an improvement on Amtrak's performance both in in my state and nationwide. 38:01 - 38:32 Rep. Peter DeFazio: Worldwide, I'm not aware of any railroads, passenger railroads, that make money, although Virgin claims they do in England because they don't have to maintain the tracks. Pretty easy to make money if all you have to do is put a train set on it, run it back and forth. That's not the major expense. So, you know, to say that we shouldn't be subsidizing commuter or we shouldn't be subsidizing Amtrak is, you know, is just saying you don't want to run trains. Because everywhere else in the world they're subsidized. 43:45 - 44:30 Ann Begeman: Most intercity passenger rail service is provided by Amtrak, which is statutorily excluded from many of the board's regulatory requirements applicable to freight carriers. However, with the enactment of the Passenger Rail Investment Improvement Act of 2008 (PRIA) which both Chairman Lipinski and Chairman De Fazio has have mentioned in their opening comments, as well as the Fixing America's Surface Transportation Act of 2015. FAST Act, the board assumed additional Amtrak oversight responsibilities, including the authority to conduct investigations under certain circumstances, and when appropriate, to award relief and identify reasonable measures to improve performance on passenger rail routes. 1:02:24 - 1:03:07 Stephen Gardner: Congress created Amtrak in 1970 to take on a job that today's freight railroads no longer wanted. In exchange for contracts assumption of these private railroads common carrier obligation for passengers and the associated operating losses for passenger service, the freights agreed to allow Amtrak to operate wherever and whenever it wanted over their lines, to provide Amtrak trains with dispatching preference over freight, and to empower what is now the STB to ensure Amtrak's access to the rail network. It's been nearly 50 years since the freight railroads and agreed eagerly to this bargain. And yet today, many of our hosts railroads fall short and fulfilling some of these key obligations 1:03:28 - 1:04:38 Stephen Gardner: Since our founding, Congress has had to clarify and amend the law to try and ensure host compliance. For example, by 1973, the freights had begun delaying Amtrak train so severely that Congress enshrined this promise of Amtrak preference into federal law, and in 2008, delays had gotten so bad that Congress created a new process to set Amtrak on time performance and provided the STB with the authority to investigate poor OTP. But for several reasons, these efforts haven't remedied the problems. For Amtrak and your constituents that has meant millions of delayed passengers and years of impediment as we try to add trains or start new routes to keep up with changing markets and demand. As the AAR are made clear and its litigation opposing the PRIA metrics and standards rule, many hosts see supporting our operation not as their obligation to the public, but as competition for the use of their infrastructure. But Amtrak wasn't created to relieve host railroads of their requirements to support passenger trains. It was created to help them reduce financial losses and ensure that passenger trains could still serve the country 1:04:38 - 1:05:15 Stephen Gardner: We need this committee's help to restore your original deal with the freights. For example you can provide us as you have in the moving forward Act, a way to enforce our existing rights of preference. You can make real Amtrak statutory ability to start new routes and add additional trains without arbitrary barriers. You can create an office of passenger rail within the STB and require them to use their investigative powers to pursue significant instances of for OTP. You can require more efficient STB processes to grant Amtrak access to hosts and fairly set any compensation and capital investment requirements. 1:06:19 - 1:07:57 Stephen Gardner: A rarely heralded fact is that the U.S. has the largest rail network in the world. And yet we use so little of it for intercity passenger rail service. A fundamental reason for this is our inability to gain quick, reasonable access to the network and receive reliable service that we are owed under law. This has effectively blocked our growth and left much of our nation underserved. City pairs like Los Angeles and Phoenix, or Atlanta to Nashville could clearly benefit from Amtrak service. Existing rail lines already connect them. Shouldn't Amtrak be serving these and many other similar corridors nationwide? 1:12:34 - 1:12:57 Randall O'Toole: Last year, the average American traveled more than 15,000 miles by automobile, more than 2000 Miles, road several 100 miles on buses, walked more than 100 Miles, rode 100 miles by urban rail, transit and bicycled 26 miles. Meanwhile, Amtrak carried the average American just 19 Miles. 1:13:35 - 1:13:55 Randall O'Toole: In 1970, the railroads' main problem was not money losing passenger trains, but over regulation by the federal and state governments. Regulation or not, passenger trains are unable to compete against airlines and automobiles. A 1958 Interstate Commerce Commission report concluded that there was no way to make passenger trains profitable. 1:14:52 - 1:15:20 Randall O'Toole: The 1970 collapse of Penn Central shook the industry. Congress should have responded by eliminating the over regulation that was stifling the railroads. Instead, it created Amtrak with the expectation that it would be a for profit corporation and that taking passenger trains off the railroads hands would save them from bankruptcy 50 years and more than $50 billion in operating subsidies later, we know that Amtrak isn't and never will be profitable. 1:15:40 - 1:16:10 Randall O'Toole: When Amtrak was created, average rail fares per passenger mile were two thirds of average airfares. Thanks to airline deregulation since then, inflation adjusted air fares have fallen by 60%. Even as Amtrak fares per passenger mile have doubled. Average Amtrak fares exceeded airfares by 1990 despite huge operating subsidies, or perhaps as has well predicted, because those subsidies encouraged inefficiencies. 1:16:50 - 1:17:15 Randall O'Toole: Today thanks to more efficient operations, rail routes that once saw only a handful of trains per day support 60, 70 or 80 or more freight trains a day. This sometimes leaves little room for Amtrak. Displacing a money making freight train with a money losing passenger train is especially unfair considering that so few people use a passenger trains, while so many rely on freight. 1:17:15 - 1:17:25 Randall O'Toole: Passenger trains are pretty, but they're an obsolete form of transportation. Efforts to give passenger trains preference over freight we'll harm more people than it will help. 2:42:40 - 2:43:50 Stephen Gardner: We think that the poor on time performance that many of our routes have is a significant impediment to ridership and revenue growth. It's quite apparent, many of our passengers, particularly on our long distance network, that serves Dunsmuir, for instance, you know their routes frequently experience significant delays, the number one cause of those delays are freight train interference. This is delays encountered, that Amtrak encounters when freight trains are run in front of us or otherwise dispatching decisions are made that prioritize the freight trains in front of Amtrak. And the reduction in reliability is clearly a problem for passengers with many hour delays. Often our whole long distance network is operating at 50% or less on time performance if you look at over the many past years. Even right now, through this period of COVID, where freight traffic has been down and we're only at 60% over the last 12 months on time performance for the entire long distance network. 2:52:44 - 2:53:23 Stephen Gardner: The difference between the US system and most of the international examples is that the infrastructure is publicly owned, publicly owned and developed in all of these nations, the nations that Mr. O'Toole mentioned, there is a rail infrastructure entity and they're developing it for both passenger and freight in some of those locations are optimized for passenger service primarily, that's for sure the case. China is a great example of a nation that's investing for both as a massive freight system and an incredible amount of investment for passenger rail. And again, they see high speed as a means of dealing with their very significant population and efficient way. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)

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