As we await a potential government shut-down next week, ECA has developed the following review to identify some of the main issues we saw this year and what we expect in the coming year.
Recapping 2018 in Congress
During the second session of the 115th Congress, lawmakers on Capitol Hill took on several pieces of legislation that impacted national energy policy and the nuclear complex.
Following two brief government shutdowns in January and February, Congress reached a budget deal that raised budget caps on defense and domestic spending by about $300 billion over the next two years. Additionally, Congress passed a $1.3 trillion omnibus appropriations bill that funded the government through the end of Fiscal Year 2018.
Government funding has relied on short-term stopgap spending bills (continuing resolutions) in recent years. This year however, Congress showed signs of returning to a normal funding process by passing the National Defense Authorization Act (NDAA) for Fiscal Year 2019 in August, the earliest the NDAA has
become law in 40 years. The NDAA authorized an increase in spending for DOE’s national security programs and established several policies related to NNSA, defense environmental cleanup, and plutonium pit production.
Congress also passed an Energy and Water appropriations package before the funding deadline on September 30. President Trump signed the FY 2019 “minibus” bill that included a $1.1 billion increase above FY 2018 levels for DOE programs, the earliest such legislation has been passed and signed in over a
decade. Within the bill, NNSA was provided one of its highest budgets ever at $15.2 billion, and increases were also provided for defense environmental cleanup and the Office of Nuclear Energy (NE). The Office of Environmental Management (EM) received $7.1 billion, and NE received $1.3
billion. Congress did not provide any funding for Yucca Mountain in the FY 2019 spending bill.
While most federal agencies were funded through a series of minibus appropriations bills in September, a partial government shutdown looms for some agencies such as Homeland Security and EPA, whose funding deadlines have been extended through December 21.
What to Expect in 2019
The 116th Congress will be sworn in on January 3, 2019, bringing a “divided government” to Washington in which the Democrats control the House and the Republicans control the Senate and Executive branch. The new session will likely be defined by whether Congress can find bipartisanship on key issues, such as the budget and improving aging infrastructure, or whether there will be two years of gridlock. Additionally, Presidential
politics will ramp up in 2019, as several Democratic Members of Congress are anticipated to enter a large primary field to challenge President Trump in 2020.
Committee Assignments: The 2018 midterm elections resulted in a flipped House that will be controlled by Democrats, while Republicans gained two seats in the
Senate. With a new majority party in the House, there will be significant changes in committee assignments and leadership. For example, Rep. Adam Smith (D-WA) will become the new House Armed Services Committee (HASC) Chairman, and Rep. Mac Thornberry (R-TX) will be the Ranking Member. On the House Energy and Commerce Committee, Rep. Frank Pallone (D-NJ) is set to become the Chairman, while Rep. Greg Walden (R-OR) will be the Ranking Member.
The chairs for the Senate Armed Services Committee (SASC) and Senate Energy and Natural Resources Committee are expected to remain the same, as there will be no change in party control in that chamber, though the Senate Energy and Natural Resources Committee may see a new Ranking Member, Sen. Joe Manchin (D-WV).
On the HASC Strategic Forces Subcommittee, which deals with EM and NNSA matters, it is expected that Rep. Jim Cooper (D-TN) will become Chairman and Rep. Mike Rogers (R-AL) will become Ranking Member. On the SASC Strategic Forces Subcommittee, Sen. Deb Fischer (R-NE) is likely to become the Chair, and the Ranking Member position is currently vacant due to the electoral defeat of Sen. Joe Donnelly (D-IN).
Rep. Marcy Kaptur (D-OH) and Rep. Mike Simpson (R-ID) are expected to become the Chair and Ranking Member, respectively, of the House Appropriations Energy and Water Subcommittee. Sen. Lamar Alexander (R-TN) and Sen. Dianne Feinstein (D-CA) are expected to become Chair and Ranking Member of the Senate Appropriations Energy and Water Subcommittee.
The 2019 session calendar for the 116th Congress is available here.
Proposed Budget Cuts: In October, President Trump stated that he is requesting each Cabinet secretary to cut five percent of their respective budgets for the upcoming fiscal year. The
request comes as the Trump Administration seeks ways to address the increasing federal budget deficit. The President’s budget request is expected to be released in February 2019, which will show the Administration’s funding priorities. While the budget request may include proposed cuts for many federal agencies, the President recently called for an increased $750 billion defense budget next year.
Cleanup Funding: Rep. Marcy Kaptur (D-OH) is expected to chair the House Appropriations Energy and Water Subcommittee beginning in January. Reports speculate that Rep. Kaptur may be friendly to cleanup matters, as there are DOE sites in her state and she has a
positive relationship with likely Ranking Member Mike Simpson (R-ID). Senator Alexander (R-TN) is expected to remain the Chair the Senate Appropriations Energy and Water Subcommittee and Senator Feinstein (D-CA) is expected to remain the Ranking Member.
Interpretation of High-Level Waste: The deadline for the public to submit comments on the Administration’s interpretation of the definition of the statutory term “high-level radioactive waste” was extended to January 9. The proposal was originally published in the Federal Register in October. It is expected that the Administration will release a final decision around March or April 2019.
Yucca Mountain: Outgoing Senator Dean Heller (R-NV) played a key role in removing funding for Yucca Mountain licensing activities in 2018. Senate Republican leadership often acquiesced to Sen. Heller’s opposition to Yucca Mountain in an attempt to protect what was seen as a vulnerable seat in Nevada. Nevada officials such as outgoing Governor Brian Sandoval and the Agency for Nuclear Projects
Executive Director Robert Halstead recently noted that they expect the Trump Administration to make another push for Yucca Mountain licensing in 2019. Rep. Mike Simpson (R-ID), who chairs the energy and water appropriations subcommittee, warned about the future of Yucca Mountain funding, saying, “If we don't get it done [in the lame duck session], it might not get done.”
Nuclear Modernization: Incoming HASC Chairman Rep. Adam Smith (D-WA) has expressed concern about the Trump Administration’s nuclear weapons policy, specifically calling into question spending
on nuclear modernization and the Nuclear Posture Review, which called for an increase in plutonium pit production. SASC Chairman Sen. Jim Inhofe (R-OK), however, recently noted that modernizing the nuclear triad will be one of his priorities for the new NDAA in the Senate.
Senate Confirmations: Several DOE nominees have started the Senate confirmation and now await approval by the full Senate in 2019, including Dr. Rita Baranwal to be Assistant Secretary of Energy for Nuclear Energy.
Other DOE nominees awaiting Senate confirmation include Chris Fall (Office of Science), Teri Donaldson (Office of Inspector General), Lane Genatowski (ARPA-E), William Cooper (Office of General Counsel), Daniel Simmons (Office of Energy Efficiency and Renewable Energy), and William Bookless (NNSA).
