Mr. Speaker, I rise in support of this bill. The fiscal year 2024 Energy and Water bill ushers in new horizons for jobs and progress for our region and Nation. Our bill assures investments in…
Mr. Speaker, I rise in support of this bill.
The fiscal year 2024 Energy and Water bill ushers in new horizons for jobs and progress for our region and Nation. Our bill assures investments in modernized energy production, vital water infrastructure, and nuclear national security, all essential for American independence inside our borders.
This bipartisan Energy and Water bill funds the U.S. Department of Energy, Corps of Engineers, Bureau of Reclamation, and regional commissions and authorities impacting every corner of our Nation. This includes the Appalachian, Delta, Denali, Northern Border, Southeast Crescent, Southwest Border, and the Great Lakes.
U.S. energy independence in perpetuity is our consistent, paramount, strategic goal, and each year our Nation makes significant progress toward it.
This bill also assures that our Nation's nuclear security assets, including the nuclear Navy, are modern and ready, both as a deterrent and to safeguard our national security. With Vladimir Putin's recent reckless threats about launching nuclear weapons in Europe and former President Donald Trump's appeasing reaction, this bill is needed as an affirmation of American will to protect and defend our people and assure our Nation's security posture against all enemies.
Mr. Speaker, I urge my colleagues to join me in supporting this bipartisan bill. I thank our able chair, Charles Fleischmann, for his dutiful and responsible service to our Nation.
I include in the Record this Proposal for the 2024 Energy and Water bill.
Proposal: A Great Lakes Authority
For the consideration of: Joseph R. Biden, Jr. President,
United States of America.
From: Rep. Marcy Kaptur (D-OH), Co-Chair, Great Lakes Task
Force; Rep. Debbie Dingell (D-MI), Co-Chair, Great Lakes
Task Force; Rep. Paul Tonko (D-NY), Chair, Environment and
Climate Change Subcommittee; Rep. Bobby Bush (D-IL), Chair,
Energy Subcommittee; Rep. Haley Stevens (D-MI), Co-Chair,
House Manufacturing Task Force
1. Summary
The eight states that comprise the U.S. portion of the
Great Lakes watershed contain the core of America's
commercial and defense industrial base.
The Department of Homeland Security defines these
industries as ``America's Critical Manufacturing Sector''.
Failure or disruption within these industries would result in
cascading disruptions in other critical sectors of the
economy, in multiple regions, and have significant national
economic impact.
This existing industrial base contains the nation's largest
pool of skilled and experienced production workers. The
Region has an almost inexhaustible supply of fresh water.
These 8 States do 25 percent of all U.S. trade with Canada,
which is this nation's largest export market. In 2020, Canada
imported more than $255 billion of U.S. goods and services.
This base provides a solid foundation for creating a unique
21st Century regional development strategy--one that can
enable the United States to (1) build back its manufacturing
base, (2) create millions of new and better jobs within the
Region, and (3) restore an assured, U.S. defense industrial
sector and a resilient energy platform sufficient to power
U.S.-based production.
Franklin D. Roosevelt created the model for such a strategy
in 1933 with the Tennessee Valley Authority (TVA)--a unique
institution brought into being to control the raging waters
of the 3 Tennessee River, provide low-cost electricity, and
advance the economic development of the under-invested seven
states in that Basin.
Our times require a 21st Century version of such an
Authority in the Great Lakes Region--one that can protect and
wisely use the fresh waters of the Great Lakes, build back
better the Region's economy and be a necessary exemplar for
climate change remediation.
The GLA's mission would be to:
Restore and protect America's principal source of fresh
water.
Foster innovation, commercialize it, and by that create
more and better jobs.
Strengthen and expand the core U.S. manufacturing and
defense industrial jobs base, and the required energy systems
to sustain/power production.
Create world-class worker education, training and
adjustment institutions.
Work with the Government and Provinces of Canada on our
mutual Great Lakes challenges including the Great Lakes-Saint
Lawrence Seaway Corporation.
The Chair of the Great Lakes Authority would be a Cabinet
level official appointed by the President and confirmed by
the U.S. Senate. The Chair would represent the U.S.
Government. A five person board lead by the Chair would be
joined by four bipartisan board members appointed by the U.S.
House and Senate leadership.
The GLA would be governed by a five-person, bipartisan
Board, each of whom serves for a five-year term. The Chair
would be a Cabinet level official appointed by the President,
confirmed by the U.S. Senate and be a full-time position. The
other four members of the Board would be appointed by the
Majority and Minority Leaders of the U.S. House of
Representatives and the U.S. Senate. Each would be confirmed
by the U.S. Senate. Eligible appointees would be limited to
residents of the Region who are currently active as a
corporate manufacturing CEO, head of a major financial
institution, President of a Land Grant University, or CEO of
a major distribution company. These four positions would be
part-time and compensated as is normal with private
corporations.
The Great Lakes Authority would be funded by the same ways
and means as was, and is now, the Tennessee Valley Authority
(TVA) and include both federally appropriated funds and
revenues generated by GLA projects, with the same annual
financing similar to that of the Bureau of Reclamation.
The Great Lakes Authority would be authorized and funded
to:
Create and administer a regional infrastructure bank that
could finance domestic civil works that have a dedicated
revenue stream such as water and wastewater systems,
Create and finance other domestic civil works from
appropriated funds,
Create and operate a business development fund to assist in
the establishment and expansion of regional-based
manufacturers,
Create university-based research, development, and
technical consortiums,
Create the 18th National Laboratory, with satellites as
necessary in GLA states, and dedicate it to advancing applied
science, the manufacturing arts, and the commercialization of
advanced technology products,
Create a patent hub that will aggressively invest and
develop new clean energy inventions, technologies and
industries, and
Create and fund world-class remedial, transition and
advanced education and training institutions and programs
that invest in the workers of the Region.
The United States has long dealt with regional challenges
with regional solutions. The TVA is an example. The purpose
of this proposal is to outline why a Great Lakes Authority is
needed and identify how it can make a major contribution to
building back better this vital region of the United States.
Today, alone of the U.S.'s major economic regions, the
Great Lakes states do not have such a vital development
institution.
2. The Challenge
Manufacturing and Job Losses:
The United States has closed 91,000 factories and lost 5
million manufacturing jobs since NAFTA was enacted in 1993
and China joined the World Trade Organization in 2000. The 8-
state Great Lakes Region lost 1.5 millions of those jobs--
that is, 30 percent. Many of the Region's people were unable
to adapt and have responded with addiction, suicide,
conspiracy fantasies, and political radicalization
Weakened Finances:
These losses of factories and jobs, in turn, have greatly
weakened the fiscal capacity of the Region's state and local
governments. A measure of this fiscal crisis is found in the
high municipal indebtedness of the Region's cities. Detroit
and Cleveland each have a municipal bonded indebtedness of
more than two billion dollars. Toledo owes $1.6 billion and
Milwaukee almost $1.4 billion. Faced with the high costs of
operation, repairs, rehabilitation and replacement, coupled
with unavoidable federal mandates that come with only 50
percent funding, these municipalities are forced to increase
utility rates on customers who are already in economic
trouble.
The On-Going Great Lakes Ecological Catastrophe:
The Region's five Great Lakes--Erie, Huron, Michigan,
Ontario, and Superior--are the source of 21 percent of the
world's surface freshwater and 84 percent of North America's.
These Lakes undergird life, work and recreation for tens of
millions of people. Yet, before our eyes they are succumbing
to an ecological disaster of epic proportions.
Dan Egan in The Death and Life of the Great Lakes writes:
The Great Lakes are now home to 186 non-native species. None
has been more devastating than the Junior Mint-sized zebra
and quagga mussels . . . leaving trillions upon trillions of
filter-feeding quagga mussels sucking the life out of the
lake itself . . . native fish populations have been
decimated. Bird-killing botulism outbreaks plague lakeshores.
Poisonous algae slick capable of shutting down public water
supplies have become a routine summertime threat. A virus
that causes deadly hemorrhaging in dozens of species of fish,
dubbed by some scientists the ``fish Ebola'' has become
endemic in the lakes and threatens to spread across the
continent. Yet, invasive species are only one of many threats
to what in fact is the largest inland sea in the world.
Researchers at the Universities of Wisconsin and Michigan
have created a ``threat map'' that analyzes 34 distinct
threats that affect these five lakes. The composite stresses
include not only invasive species but also toxic algae,
erosion, development, waste plastics and toxic pollutants
among other sources.
Cumulative Stress in the Great Lakes Today:
The state and local governments of the region are
themselves so economically strapped that they are fiscally
incapable of making the remediations that the Lakes require.
Major fiscal help and institutional leadership from the
Federal Government is essential if this ecological
catastrophe is to be stopped and then reversed. Innovation--
Regarding innovation in the Great Lakes region, a telling
measure of the region's innovation decline is found by
comparing whether these eight states have kept pace with the
rest of the United States in devising inventions that are
sufficiently new, non-obvious and useful that inventors and
companies file and receive a patent from the United States
Patent Office (USPTO).
The Great Lakes states have not kept pace with innovation.
Specifically, in 1990, 51,000 U.S. patents were issued and in
2020 the USPTO granted 188,000--an increase of 265 percent. 8
In 2020, California residents were granted 571 percent more
patents than they were in 1990. Oregon residents got 553
percent more. Washington State residents were awarded a
whopping 901 percent more. Not a single Great Lake State even
reached the national average by 2020. All fell behind the
pace of U.S. invention.
The Nuclear Power Issue:
Heavy power demands across the region require a dependable
baseload energy supply with a highly skilled workforce.
Today, the Region has 17 nuclear reactors at 15 sites in
operation. Nuclear power provides 15 percent of the
electricity for Ohio and Wisconsin, 23 percent for Minnesota,
29 percent for Michigan, 33 percent for New York, 41 percent
for Pennsylvania, and 53 percent for Illinois. Competition
pressures from massive, new natural gas supplies have created
financial pressures that make nuclear power more expensive.
These zero net carbon nuclear plants have become financially
uncompetitive. Yet, thousands of companies and hundreds of
thousands of workers depend on this nuclear base load.
For the foreseeable future, nuclear energy must be a key
segment of electricity generation or neither economic
development nor climate change goals can be attained. Ways
are means are required to extend the operation of these
nuclear facilities and, working with all stakeholders,
increase electric production beyond what private enterprise
appears to be able to facilitate in a quickly changing and
uncertain market.
The Brookings Study:
A decade ago, the Great Recession and the collapse of the
U.S. auto industry highlighted the manufacturing decline in
the Region. Regional leaders engaged the Brookings Institute
to help identify a consensus among private-sector and public
stakeholders as to what to do to create the next economy. The
result was a report: ``The Next Economy: Economic Recovery
and Transformation in the Great Lakes Region.''
The report called for the federal, state, metropolitan
leaders to join with the private and philanthropic sectors
to:
Invest in the assets that matter--innovation,
infrastructure and human capital,
Devise new public-private institutions that are market-
oriented and performance-driven,
Reimagine metros' form and governance structures to set the
right conditions for economic growth.
The report was issued in September 2010. The unstated
expectation was that the report and leadership consensus
would guide the Obama Administration's second round of
recovery actions post-2010. It never happened. In November
2010, control of the U.S. Senate and House of Representatives
changed. What happened next is that the U.S. devolved into
ten years of national political gridlock. Neither the state,
nor local governments, nor the industries, nor the companies,
nor the people of the region could meet the magnitude of this
challenge alone. Nor could they form a joint regional
strategy because there was no regional institution through
which the leaders of the Region could define, advocate and
create such a truly regional strategy.
What the Great Lakes Region needed then, and needs even
more now, is a 21st Century Great Lakes Authority--an
institution that can help the Region innovate, create jobs
and confront the compounding environmental and climate
challenges. This proposed Great Lakes Authority can be that
Institution. By its structure, focus, coherence, funding and
leadership it can help the Region and nation envision,
implement and sustain an aggressive Great Lakes strategic
development agenda.
This proposed Authority can be an institutional anchor to
aid the Region to sustain a long-term effort through the
storms, calms and vagaries of national policy making.
A Great Lakes Authority:
The United States has always supported regional solutions
to regional development and regional challenges. The
principal of these efforts is managed by the Bureau of Land
Management, which traces its roots to 1812 and was formed, in
part, to serve arid parts of the nation with regional water
resources and power generation.
Then, in 1933 during the economic depression, FDR created
the 7-state TVA. In 1965, President Lyndon Johnson created
the 13-state Appalachian Regional Commission. Their
successors have created regional commissions in other parts
of the U.S. These regional instrumentalities were created to
strengthen the economies of these Regions and help those
states achieve economic equality with the rest of the Nation.
Additional regional efforts have been proposed in other
states. Two of these Regional Commissions (Delta and Northern
Border) have been provided miniscule funding.
The Southeast Crescent Region and Southwest Border Regional
Commissions have not been activated. Strikingly, the Great
Lakes Region has neither a Regional Authority, such as TVA,
nor even a lesser-funded regional commission. Simply put,
building back better the Great Lakes Region is a challenge
that requires an empowered and well-financed Great Lakes
Authority.
Lessons from the TVA:
Now, almost nine decades after its founding, some lessons
from TVA's experiences provide clear guidance for this
proposed Great Lakes Authority.
1. Many environmental and economic problems are not bound
by state boundaries. Regional approaches are required to
solve regional challenges.
2. The development institutions and capacities of any
Region are so atomized as to be ineffectual when dealing with
broader issues of mutual concern. The 2010 Brookings report
highlighted that: ``The metropolitan areas of the Great Lakes
are ruled by a byzantine network of cities, counties, towns,
townships, villages, school boards, fire districts, library
districts, workforce boards, industrial development
authorities, water and sewer districts and a host of other
entities.'' The Brookings scholars concluded that the
metropolitan areas of the Great Lakes need to begin speaking
with a unified voice on economic development and design and
implement a unified strategy. A Regional Authority can
facilitate such coherence.
3. The TVA has a 200-person unit devoted to the economic
development of the 7-state TVA region. It is far larger,
better funded and more effective than any of the 7 state
efforts in the Region. The TVA provides; (a) an international
capacity to identify and source private capital investment,
(b) secure domestic finance through state, municipal, banking
and venture funds, as well as (c) the guidance required to
select sites and coordinate infrastructure and agreements at
low, long-term interest rates. With these capacities, TVA has
created a powerful supplement to state and local efforts to
attract capital investment and jobs into the Tennessee
Valley. It works well. The Great Lakes basin would benefit
from this TVA approach.
Conclusion:
When conceiving the TVA, President Franklin D. Roosevelt
focused on equity. What FDR challenged was an inequality that
was out of control between capital and labor and also between
the regions of the United States, particularly the Southern
and Appalachian regions. FDR closed much of this inequality--
both between people and between regions. Since the early
1980s, the inequalities between the few and the many, the
coasts and the interior, and the developed and underdeveloped
regions of the U.S. have widened.
Now, it appears that a new era has opened with the
Administration of President Joseph Biden. The new balance
between economic efficiency and economic equity now appears
to be once again emphasizing a more equitable distribution of
economic growth and opportunities for both people and
regions. The Great Lakes region has been falling behind by
almost every measure and needs substantial attention to
reverse economic and
environmental challenges. A Great Lakes Authority is as vital
a development tool for the Biden-Harris Era of today as TVA
was for the Roosevelt Era of the 1930s.