USICA –COMPETES ACT PROCESS – 5 Things to Watch

 

June 16, 2022

Overview

The United States Innovation and Competition Act (USICA) and America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science (America COMPETES) Act Conferees continue to negotiate differences between the House and Senate versions of their respective bills. In May, lawmakers outlined the conference schedule for May and June, with plans to report the final version out of conference by June 20 – though that timeline will not be met, as the conference has already missed its deadline of May 25 for Professional Staff and Counsel to “close out” all legislative items. Officials close to the conference process have indicated that the bill may not be ready until late August. There are still key differences between the House-passed America COMPETES Act and the Senate-passed USICA including how to prioritize research funding. USICA would allocate most of its funding to the National Science Foundation (NSF) while the America COMPETES Act would allocate its funding to the Department of Energy. Other key differences include provisions providing pathways for immigration, provisions on climate spending, and provisions on trade and tariffs. Here are five key questions about the process moving forward.

1 – What is the likelihood of passage for a broad agreement?  The conference committee has been moving relatively slowly given the predicted timeline. The longer the conference process takes, the louder the calls will grow to separate out the more popular and business-friendly provisions into a stand-alone bill. This week, Congressional leaders, led by Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Chuck Schumer (D-NY) have been moving to narrow the scope of the package, in an effort to produce a final product before the August recess. This step is largely driven by the concern that the longer negotiations drag out, the increased likelihood that nothing will get done this Congress. House Majority Leader Steny Hoyer (D-MD) said that he sees the bill moving before August, as Democrats continue resolving differences. Pelosi and Schumer will meet this weekend in hopes of resolving key differences. Lastly, the longer the conference drags on, the less likely Republicans are to compromise and provide President Biden and Congressional Democrats a legislative victory.

2 – If a bill passes, will it look more like the Senate or House version?  After the Senate took the procedural steps to move the conference process forward, more than 100 conferees were named including 80 conferees from the House. Many of the House members will push for their priorities, however, it is important to be mindful that 18 Republican Senators crossed the aisle to support this package, and Sen. Bernie Sanders (I-VT) is unlikely to support the final package. This means Senate Democrats must secure at least 11 GOP votes to pass the final version. There are some stark differences that must be resolved before a final product can be voted on. Both bills include similar statements of purpose for the program and focus on technology development, job creation, and expanding U.S. innovation capacity, with the House bill emphasizing inclusive innovation. But there are differences in technology hub priorities, funding for research, and some eligibility and oversight requirements.

3 – If no agreement occurs, will CHIPS Act move separately? One of the most sought-after provisions in this process is the CHIPS Act, which aims to increase American competitiveness by subsidizing new investment in domestic semiconductor manufacturing capacity. The CHIPS Act does this by providing $52 billion in federal funding to support investment in semiconductor manufacturing capacity. The main funding mechanism is tax credits for companies who meet certain criteria, or direct spending on R&D by some government agencies. Given the shortage of semiconductor chips over the past few years impacting consumer sales on everything from cars to phones to washing machines, and concerns over China’s technological ambitions, there is bipartisan and bicameral resolve to increase the supply of American-made semiconductors. If the CHIPS Act language is stripped out and moves on its own, roughly $50 billion would be allocated for the Commerce Department to carry out the semiconductor incentive program. This has become a key priority for many, including the Biden administration, with Commerce Secretary Raimondo being an especially vocal proponent for the semiconductor incentives. However, if CHIPS were to move separately, many members fear they would lose leverage for their other priorities in the broader package. Therefore, it may be highly unlikely that decoupling the package becomes a viable option.

4 – What happens to the riders? Following the House passage of the China Competition bill, Senate Minority Leader Mitch McConnell (R-KY) released a statement that addressed his concerns about riders, or extraneous policy provisions. In his statement, McConnell stated that “From Green New Deal follies to Big Labor handouts to marijuana banking, the House Democrats’ competing bill drags these efforts leftward and backward. The Senate must now restore a product that reflects what passed this chamber with bipartisan support.” McConnell’s objections highlight the leverage Senate Republicans currently have, knowing that whatever comes out of conference will need their support again. With Senate Democrats constrained by the need to keep at least 11 GOP votes, assuming no more defections, controversial riders that do not have full support within the Senate Democratic caucus are unlikely to gain momentum.

5 – What China components are still in play?  Two of the more significant China-related provisions are the outbound investments screening language and the modifications to the Holding Foreign Companies Accountable Act (HFCAA). An updated outbound investment language was recently proposed by Sens. Bob Casey (D-PA) and John Cornyn (R-TX), and Reps. Rosa DeLauro (D-CT), Bill Pascrell (D-NJ), Michael McCaul (R-TX), Brian Fitzpatrick (R-PA), and Victoria Spartz (R-IN) as a mechanism that would follow a similar model at the Committee on Foreign Investment in the U.S. (CFIUS), focused on regulating outbound investments in ‘critical capabilities’ made by U.S. individuals or entities to foreign entities in specific countries of concern, like China. The White House has also stated its support for an outbound investment screening mechanism, so it would be unsurprising to see this priority return if the conference process does lead nowhere. The HFCAA modifications, offered by Sen. John Kennedy (R-LA) and Reps. Brad Sherman (D-CA), Andy Barr (R-KY) and Spartz, would shorten the potential delisting timeline from three to two years for U.S. listed Chinese companies in violation of U.S. audit regulations.

 

BGR Welcomes David J. Urban as Managing Director

WASHINGTON, D.C. (April 6, 2022) – BGR Group, Washington, D.C.’s premier bipartisan lobbying and public relations firm, today announced that David J. Urban will be joining the firm as Managing Director. David has more than three decades of experience in public policy, business, the law, military and public service sectors. He will provide expertise and counsel to BGR clients across a broad range of public policy areas.

“David Urban will be a tremendous asset to all of BGR’s clients,” Founding Partner Haley Barbour said. “His broad experience in both the public and private sectors is unparalleled. His insights into communications, policy, law, and politics make him uniquely suited to the BGR team. We are thrilled to have him on board.”

“I am honored to join BGR,” Urban said. “After more than three decades of working in and out of Washington, I know what it takes to build a successful team. BGR represents the best of the best. I am ready to dive in and help BGR’s clients navigate an increasingly volatile and complicated political and policy environment.”

“When people think of Pennsylvania, they think of David Urban,” Congressman GT Thompson (R-PA-15), Dean of the Pennsylvania Republican congressional delegation, said.  “Arlen Specter, Rick Santorum, Pat Toomey, and scores of others have turned to David for his insight and assistance. I have appreciated the opportunity to rely on David’s Pennsylvania knowledge and public policy experience as well.”

Most recently, David served as Executive Vice President of North American Corporate Affairs for ByteDance, the parent company of TikTok. In this senior role, he worked alongside the company’s top leadership, helping them navigate public policy and communications challenges, as well as advising on Environmental, Social, and Governance and Corporate Social Responsibility issues.

As President of the American Continental Group (ACG), a premier bipartisan government affairs and strategy consulting firm, he provided high stakes counsel to key clients including the CEO of Zoom during the early tumultuous days of the COVID-19 pandemic and the CEO of 7-Eleven to help the company adapt to a rapidly changing regulatory environment. He also has experience in nonprofit space working with groups ranging from the Human Rights Campaign to the US Anti-Doping Agency.

Before joining ACG, David served as Chief of Staff to former U.S. Senator Arlen Specter of Pennsylvania for five years. Senator Specter was an influential member of the Senate Judiciary and Appropriations Committees. In this role, David was the Senator’s senior advisor on all legislative, political, media and administrative matters in Pennsylvania and Washington.

David was appointed by former President Donald Trump to serve as the 11th Chairman of the American Battle Monuments Commission, playing a leadership role in the commemorations of the 100th Anniversary of the World War I Armistice, the 75th Anniversary of the D-Day landings at Normandy and the 75th Anniversary of the Battle of the Bulge. He was also appointed by the President to the Board of Visitors (Trustees) for the United States Military Academy at West Point.

A graduate of West Point, David served as an artillery officer in the 101st Airborne Division where he was awarded the Bronze Star for his service during Operation Desert Storm. He earned a law degree from Temple University and a Master’s in Government Administration from the University of Pennsylvania. He completed an ESG certification program through the Said School of Business at Oxford University and the Stratfor certification program in geopolitical analysis at the Florida Atlantic University. He served as an adjunct professor at Carnegie Mellon University’s Heinz School of Government. An active member of the Pennsylvania Bar, David is admitted to practice before the Pennsylvania Supreme Court, the United States District Court for the Eastern District of Pennsylvania, the United States Court of Appeals for the Third Circuit, and the Supreme Court of the United States.

BGR Views: State of the Union Address 2022

BGR Public Relations Principal Jo Maney talks to BGR Financial Services Practice Co-Head Andy Lewin (D) and BGR Defense and Aerospace Senior Vice President Dan Greenwood (R) about President Biden’s upcoming State of the Union Address.

 

 

BGR Elects Four New Firm Principals

January 25, 2022 – BGR Group, Washington, D.C.’s premier bipartisan lobbying and public relations firm, today announced that Dan Farmer (Health and Life Sciences), Pete Landrum (Financial Services), Joe Lai (Commerce), and Jerry Strickland (State Advocacy and Appropriations) have been elected by their colleagues to be principals in the firm.

“BGR continues to expand and offer our clients top notch analysis and guidance on key policy challenges,” said Erskine Wells, President of BGR Group. “Dan, Pete, Joe and Jerry have been outstanding colleagues and contributors to BGR’s success. Their election as principals reflects their hard work and high level of performance in service of BGR’s clients.”

 

 

BGR Group Hires Dan Greenwood, National Security Expert, to Join Defense and Commerce Practices

Washington, D.C. (December 2, 2021) – BGR Group, Washington, D.C.’s premier bipartisan lobbying and communications firm, today hired Col. Daniel Q. Greenwood, U.S. Marine Corps (Ret.) to join its Defense and Commerce Practices as Senior Vice President. Greenwood has extensive national security and government affairs experience in building bipartisan consensus on Capitol Hill, across the Executive Branch, and the private sector. At BGR, he will work on issues related to national security, foreign military sales, cybersecurity, and emerging technologies such as artificial intelligence and unmanned systems.

“We are thrilled to have Col. Greenwood join the BGR team,” BGR President Erskine Wells said. “Dan has the unique experience of leading Marines in combat and leading government affairs teams in Washington in Congress, the National Security Council, and the White House. BGR’s clients will benefit from his broad perspective and background on issues ranging from traditional defense to emerging technologies.”

“It’s an honor to join the outstanding, bipartisan BGR team,” Greenwood said. “BGR is well known for its expertise in defense and aerospace advocacy. I am excited to work with BGR colleagues to advance the priorities of clients and help provide the perspective of the men and women of the U.S. Armed Forces.”

“Dan is a proven leader and tremendous addition to the BGR team,” Defense and International Practice Co-Chair Ambassador Doug Lute said. “His unparalleled experience makes him an expert at communicating complex issues and analytical solutions to diverse audiences. He has worked on policy and legislative issues related to national and homeland security, defense, cyber security, technology, trade, and energy. We are excited to have him on board where he will add immediate value to our defense and international clients.”

Greenwood is retiring from the U.S. Marine Corps after 29 years of serving around the world including Japan, Europe, Africa, the Middle East, and Haiti. He was most recently the Indo-Pacific Strategy/Posture Director in Headquarters, Marine Corps.  Prior to this, he was detailed to the White House where he served in multiple positions including Deputy Assistant to the President and Deputy Director, White House Legislative Affairs, and as Senior Director for Legislative Affairs at the National Security Council. From 2013-2016, he served as the Head of Congressional Affairs for the Marine Corps in the U.S. House of Representatives. He also led the Joint Staff (J-5) Middle East Directorate Iraq and Syria Teams developing strategic plans and policy for the Chairman of the Joint Chiefs of Staff.

Dan commanded Marine Corps units at every rank from Second Lieutenant to Colonel including during multiple combat deployments to Afghanistan and Iraq.  As a Colonel during 2016-2017, he commanded the Special Purpose Marine Air Ground Task Force-Crisis Response-Africa (SPMAGTF-CR-AF) during operations in Libya, Somalia, and 12 countries across Africa. He commanded 3rd Battalion, 9th Marines during 2008-2010 deploying to Anbar Province, Iraq.

Dan is a graduate of the United States Naval Academy. He was a Distinguished Graduate at the National War College earning a M.S. in National Security Strategy; he also earned Masters of Operational Studies and Masters of Military Studies degrees from the Marine Corps University Command & Staff College and the School of Advanced Warfighting.

BGR Commerce Practice Announces Justin Rzepka as New Co-Chair and Robin Colwell as Senior Vice President

Washington, D.C., (September 15, 2021) – BGR Group, Washington, D.C.’s premier bipartisan lobbying and public relations firm, today announced that Justin Rzepka has been named the new Co-Chair of the firm’s Commerce Practice and Robin Colwell will be joining the practice full-time as Senior Vice President. The bipartisan Commerce Practice represents clients in the broadband, semiconductor, and transportation sectors. Team members work in Washington and state capitals advocating for clients on a range of issues including expanding high-speed internet and communications service; upgrading transportation networks; protecting consumer data and privacy; advancing science, technology and engineering research; and oil and gas markets.

“Our bipartisan Commerce Practice is an outstanding group of policy experts across multiple industries,” BGR Group President Erskine Wells said. “Justin is a true leader, and Robin is one of the most respected tech and telecom professionals in town.   We are thrilled to announce these changes to the team.”

Justin joined BGR in 2018 after 17 years of policy and political work on Capitol Hill and in the private sector. He spent nine years working at NCTA – The Internet & Television Association. During his time at NCTA, Justin worked with Association members on a wide swath of policy areas to help advance the legislative and business priorities of its member companies. Prior to NCTA, Justin spent several years on Capitol Hill working in several policy areas: foreign policy, telecommunications, transportation, and taxation. He worked at the Congressionally mandated U.S.-China Economic and Security Review Commission, developing policy on the U.S.-Sino relationship for their annual report.

Prior to being named Commerce Practice Co-Chair, Justin was voted to be a firm Principal in January 2021.

Earlier this year, Robin joined BGR as Of Counsel. She previously served at the White House National Economic Council, developing Administration policy and leading interagency implementation of priorities including 5G deployment, security, and innovative network architecture; spectrum allocation; rural broadband deployment; data privacy and security; and domestic supply chain security. Robin also served as Chief of Staff to Commissioner Michael O’Rielly at the Federal Communications Commission, as Chief Counsel to the House Energy & Commerce Committee for Communications and Technology, as Legislative Counsel for Senate Commerce Committee members including Senators Tim Scott, Jim DeMint, and Peter G. Fitzgerald, and as Counsel to the Senate Commerce Committee for Tourism, Competitiveness, and Innovation.

BGR Views: Bipartisan Infrastructure and Budget Lookahead

BGR PR Principal Jo Maney is joined by BGR President Erskine Wells, a former top Republican congressional staffer, and BGR Financial Services Practice Co-Head Andy Lewin, a former top Democratic congressional staffer, to decipher what’s ahead for infrastructure and budget legislation.

Erskine Wells Named President of BGR Group

Washington, D.C. (June 16, 2021) – BGR Group, Washington, D.C.’s premier bipartisan lobbying and public relations firm, today named Erskine Wells president of the firm. Erskine is Co-Head of BGR’s Commerce Practice and Defense Practice. Prior to joining BGR in 2011, he was a top Republican aide in the U.S. House and Senate for nearly a decade.

“Erskine is a natural leader. He has helped guide BGR and its clients through the pandemic with tremendous results,” BGR Founding Partner Haley Barbour said. “He will be an outstanding president for our firm.”

“Erskine is a policy expert with high political acumen, a rare combination,” BGR Chairman and CEO Bob Wood said. “He is an extremely effective advocate for his clients, a generous colleague, and a true leader in our firm. His vision will help guide BGR for many years to come.”

Erskine represents clients with interests in telecom, defense, transportation, and appropriations. Prior to joining BGR, Erskine worked for Sen. Roger Wicker (R-Miss.) as a senior staff member. Earlier, Erskine managed appropriations efforts for then-Rep. Roger Wicker’s office in the House of Representatives. He also advised Wicker on national security, defense, financial services, and transportation issues.

As the co-chair of BGR’s Commerce practice, Erskine’s clients include wireless and cable providers, firms in the electronics industry and global shipping companies. He also represents national security clients before the Congress and the administration. He has professional connections throughout government and consistently delivers results for BGR’s clients.

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Andy Lewin Named Co-Head of BGR Group’s Financial Services Practice Group

Washington, D.C. (June 7, 2021) – BGR Group, Washington, D.C.’s premier bipartisan lobbying and public relations firm, has named Andy Lewin as a Co-Head of the firm’s Financial Services practice. Lewin joins former Republican Congressman Sean Duffy in this role. Both are Principals at BGR.

“Andy has been a tremendous asset to BGR in his time here,” Corporate Counsel Dan Murphy said. “As our Financial Services practice has grown, Andy has provided excellent insight and guidance to our clients across the policy spectrum. Working with fellow practice Co-Head Sean Duffy, BGR has a strong bipartisan team ready to advocate for our clients on the Hill, in the administration, and in state capitals across the country.”

Andy has deep, substantive expertise and an extensive background in financial services and tax issues. He also serves as a point person for the firm’s outreach to moderate Democrats in both the House and Senate. Prior to joining BGR in 2017, Andy served as Assistant Vice President for government and industry affairs at Zurich Financial Services, developing and advocating for the company’s legislative and regulatory agendas on issues including regulatory reform, natural catastrophes, taxation, climate change and terrorism risk insurance. Andy also represented Zurich at its public policy trade associations, including the American Insurance Association and the Financial Service Roundtable and chaired the Roundtable’s Insurance Working Group.

During his time on Capitol Hill, Andy served as Legislative Director for Rep. Dennis Moore (D-Kan.), who was then chairman of the House Financial Services Subcommittee on Oversight and Investigations. In this position, Andy developed legislative agendas and formulated legislation on insurance, banking, securities, housing finance, financial privacy and data security, and insurance regulatory reform. Prior to his time doing Financial Services Committee work for Congressman Moore, he served as Legislative Director for Rep. Max Sandlin (D-Tex.), then a member of the House Ways and Means Committee, where he worked on tax, trade, pensions, federal budget and energy issues.

 

BGR Views: Meet Robin Colwell

In the latest BGR Views, BGR PR Principal Jo Maney talks about the telecom policy landscape with Robin Colwell, who joins BGR as Of Counsel.

For more from Robin, read her expert analysis: Infrastructure Push Presents Major Opportunities and Challenges for Broadband

BGR Views: Meet Robin Colwell from BGR Group on Vimeo.