[House Report 113-116] [From the U.S. Government Publishing Office] 113th Congress Report HOUSE OF REPRESENTATIVES 1st Session 113-116 ====================================================================== AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS BILL, 2014 _______ June 18, 2013.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed _______ Mr. Aderholt, from the Committee on Appropriations, submitted the following R E P O R T together with MINORITY AND ADDITIONAL VIEWS [To accompany H.R. 2410] The Committee on Appropriations submits the following report in explanation of the accompanying bill making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for fiscal year 2014. OVERVIEW The fiscal year 2014 discretionary spending in this bill totals $19,450,000,000, which is a decrease of $1,286,294,000 below the fiscal year 2013 enacted level of $20,736,294,000 (defined as the amount provided within Public Law 113-6 and excluding emergency funding, disaster relief adjustments, the 251A sequester, and any other adjustments imposed by the Office of Management and Budget pursuant to section 3004 of Public Law 113-6), and a decrease of $515,818,000 below the budget request level of $19,965,818,000. The President's request did not include funding for Food for Peace, Title II grants. Overall, the bill results in a reduction of more than six percent in discretionary spending from fiscal year 2013. The funding levels provided in this appropriations bill continue to demonstrate how seriously this Committee takes the responsibility to rein in discretionary spending. The Committee's actions to reduce spending on the many agencies, programs, and activities funded in this bill will help address the Nation's debt, deficit, and economic challenges. Oversight and Hearings Consistent with the Committee on Appropriations Oversight Plan, as approved and transmitted to the Committee on Oversight and Government Reform and the Committee on House Administration in January 2013, the Subcommittee began the fiscal year 2014 process by maintaining the Committee's strong commitment to comprehensive oversight of Federal discretionary spending under the Subcommittee's jurisdiction. In order to thoroughly review the President's budget request for fiscal year 2014 and examine how funds appropriated in previous years had been managed, the Subcommittee held 11 hearings for the mission areas, agencies, and programs of the U.S. Department of Agriculture (USDA), the Food and Drug Administration (FDA), and the Commodity Futures Trading Commission (CFTC). The hearings included: USDA Food Safety--March 13, 2013 USDA Food, Nutrition, and Consumer Services--March 14, 2013 USDA Inspector General--March 21, 2013 Commodity Futures Trading Commission--April 12, 2013 Secretary of Agriculture--April 16, 2013 USDA Research, Education, and Economics--April 17, 2013 USDA Marketing and Regulatory Programs--April 18, 2013 USDA Rural Development--April 24, 2013 USDA Natural Resources and Environment--April 24, 2013 USDA Farm and Foreign Agricultural Services--April 25, 2013 Food and Drug Administration--April 26, 2013 The Subcommittee began its fiscal year 2014 hearings with USDA's Food Safety mission area to investigate the potential for meat inspector furloughs to limit the nation's meat and poultry supply and cause economic hardship for livestock and poultry producers. The Subcommittee next called before it the Food, Nutrition, and Consumer Services mission area to review USDA's management of the $103 billion in annual spending for domestic feeding programs. Unfortunately, these programs have high rates of waste, fraud, and abuse, and even though spending on them increases every year, management improvements have been slow to come. Continuing the discussion, the Subcommittee heard from USDA's Office of the Inspector General on its work to find and deter this waste, fraud, and abuse, and to improve the administration of USDA's numerous agencies and programs. In its hearing with CFTC, the Subcommittee questioned the agency's emphasis on hiring staff rather than improving technology systems to provide the agency a more efficient way to do business. The Subcommittee took its concerns directly to USDA Secretary Vilsack regarding the accounting and budget gimmicks in the budget request that are used to claim savings and sought answers on the Department's priorities. Agricultural research is a critical part of USDA and is broadly supported by the Subcommittee. However, the Subcommittee was disappointed USDA did not comply with the request for additional information on certain grant programs so the Subcommittee could improve its oversight activities. There is a significant opportunity within USDA's Marketing and Regulatory Program mission area to increase sales of U.S. agricultural products, thus supporting U.S. jobs and industry. Yet, the administration nonsensically proposed to reduce funding for the Animal and Plant Health Inspection Service (APHIS), which is vital to this effort, and was discussed in detail in this hearing. The Subcommittee focused once again on the struggles of the Natural Resources Conservation Service (NRCS) to right the wrongs in its financial management and accounting practices and discussed Rural Development's proposal to reduce funding by $106 million for its water and waste disposal program, which has a backlog greater than $3 billion. Rural Development's proposals to create a new, unproven $55 million grant program through the appropriations process and cuts for rural housing programs received skeptical attention. Altogether, the administration's proposal is bad news for families and communities in rural America. The Subcommittee discussed how agricultural exports continue to be a bright spot in our nation's trade balance, but that the administration failed to capitalize on that success by doing more in this area. Instead the Department focused on an effort to move the Food for Peace program from USDA to the U.S. Agency for International Development; an idea that has little congressional support. In the final hearing on FDA, the Subcommittee delved into sequestration in an attempt to reconcile the conflicting information provided by the agency and administration regarding sequestration's effect on food and drug safety. The Subcommittee will monitor the issues identified and discussed at the hearings, as well as others relevant to the management of USDA, FDA, CFTC, and the Farm Credit Administration and will maintain its oversight efforts throughout the 113th Congress to ensure taxpayer dollars are being invested wisely and prudently on behalf of the American people. TITLE I AGRICULTURAL PROGRAMS Production, Processing, and Marketing Office of the Secretary (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $45,222,000 2014 budget estimate.................................. 44,148,000 Provided in the bill.................................. 40,516,000 Comparison: 2013 appropriation................................ -4,706,000 2014 budget estimate.............................. -3,632,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. The following table reflects the amount provided by the Committee for each office and activity: OFFICE OF THE SECRETARY [Dollars in Thousands] ------------------------------------------------------------------------ Committee FY 2013* FY 2014 enacted estimate provision ------------------------------------------------------------------------ Office of the Secretary................ $4,924 $5,086 $4,550 Office of Tribal Relations............. 485 502 498 Office of Homeland Security and 1,458 1,507 1,295 Emergency Coordination................ Office of Advocacy and Outreach........ 1,386 1,217 1,185 Office of the Assistant Secretary for 784 809 820 Administration........................ Departmental Administration............ 23,633 22,993 20,760 Office of the Assistant Secretary for 3,772 3,897 3,504 Congressional Relations............... Office of Communications............... 8,780 8,137 7,904 -------------------------------- Total............................ $45,222 $44,148 $40,516 ------------------------------------------------------------------------ *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Secretary, the Committee provides an appropriation of $40,516,000. The Committee recommendation includes the following offices under the Office of the Secretary: Office of the Secretary; Office of Tribal Relations; Office of Homeland Security and Emergency Coordination; Office of Advocacy and Outreach; Office of the Assistant Secretary for Administration; Departmental Administration; Office of the Assistant Secretary for Congressional Relations; and Office of Communications. Pay Cost.--The Committee does not include requested funding for a civilian pay increase across the Department. Should the President provide a civilian pay increase for 2014, it is assumed that the cost of such a pay increase will be absorbed within existing appropriations for fiscal year 2014. CCC Report.--The Committee directs the Secretary to provide a report on November 15, 2013, and May 16, 2014, on planned uses of funding under the authorities of Section 4 and Section 11 of the Commodity Credit Corporation Act. Food Aid Reform.--The bill continues to fund Food for Peace Title II grants. There is agreement on the goals of reducing food insecurity around the globe and furthering the national security interests of the United States. However, there continues to be disagreement on how to achieve these goals in the most efficient and effective manner. The program as currently structured almost doubles the return on the taxpayer's investment by supporting American jobs and farmers while contributing to food security abroad. At this time, the Committee cannot agree to the food aid reform proposal. The proposed changes could cause the program to operate outside of the structure, transparency, and dedicated constituencies provided under the Food for Peace Act. Notification.--Within 30 days from the enactment of this Act, the Secretary shall notify the House and Senate Committees on Appropriations on the allocation of the funds provided to the Assistant Secretary for Congressional Relations by USDA agency, along with an explanation for the agency-by-agency distribution of the funds. Late Reports.--Reports requested by the House and Senate Appropriations Committees are an important part of the exercise of the Committees' oversight mandate. The Committee is concerned by the Department's consistent delinquency in completing these reports. The Committee is dismayed that 18 reports are late, due to excessively long reviews, especially in the Office of the Secretary. The Committee finds it unacceptable that some reports are almost a year overdue. The dates and directives specified in the House, Senate, or conference report are mandatory. The Committee reserves the right to call before it any agency that does not submit its report or reports on time. State Office Collocation.--The Committee continues to direct that any reallocation of resources related to the collocation of state offices scheduled for 2014 and subsequent years is subject to the Committee's reprogramming procedures. Administrative Provision.--The Committee directs the Secretary to advise the Committees on Appropriations, through the Office of Budget and Program Analysis, of the status of all reports requested of the Department in this bill at the time of submission of the fiscal year 2015 budget and monthly thereafter. The Committee reminds the Secretary that all correspondence related to the directives in this bill must be addressed to the Committee on Appropriations. Loan and Grant Programs.--The Committee directs the Department, through the Office of Budget and Program Analysis, to provide quarterly reports to the Committees on Appropriations of the House of Representatives and the Senate on the status of obligations and funds availability for the loan and grant programs provided in this bill. The Committee further directs that if an estimate of loan activity for any program funded in Titles I and III of this bill indicates that a limitation on authority to make commitments for a fiscal year will be reached before the end of that fiscal year, or in any event whenever 75 per centum of the authority to make commitments has been utilized, the Secretary shall promptly notify the Committees in writing, through the Office of Budget and Program Analysis. Invasive Species.--The Committee recognizes the threats posed by invasive plant species and the need to protect, restore, and enhance native plants, including those that are endangered or threatened. The Committee encourages the Agricultural Research Service, the Natural Resources Conservation Service, and the National Institute of Food and Agriculture to support the research, education, and conservation of native plants. BioPreferred Program.--The Committee directs the Department to expeditiously implement changes to the program to include forest products that meet the biobased content requirements as included in the 2013 farm bill. Farmer-Owned Cooperatives.--The Committee recognizes USDA's long track record working with farmer-owned cooperatives and encourages the Secretary to share the Deparment's knowledge and best practices with other Federal agencies that have cooperative development programs. Flexibility in Loan and Loan Guarantee Levels.--The bill includes language to exceed by up to 25 percent the limitation on loan and loan guarantee levels without budget authority upon written notification to the Committees on Appropriations. Executive Operations OFFICE OF THE CHIEF ECONOMIST 2013 appropriation*................................... $15,606,000 2014 budget estimate.................................. 12,854,000 Provided in the bill.................................. 15,245,000 Comparison: 2013 appropriation................................ -361,000 2014 budget estimate.............................. +2,391,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Chief Economist, the Committee provides an appropriation of $15,245,000. Drought Resilience.--The Committee recognizes the importance of understanding and being prepared for drought and encourages the Office of the Chief Economist to continue to work with partners on drought-related issues. Policy Research.--The Committee includes $4,000,000 for policy research under 7 U.S.C. 3155 for entities with existing institutional capacity, including staff, databases, models, and long-term, well-documented experience, to conduct complex economic and baseline analysis for the benefit of USDA, the Congressional Budget Office, and the Congress. NATIONAL APPEALS DIVISION 2013 appropriation*................................... $13,868,000 2014 budget estimate.................................. 12,940,000 Provided in the bill.................................. 12,584,000 Comparison: 2013 appropriation................................ -1,284,000 2014 budget estimate.............................. -356,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the National Appeals Division, the Committee provides an appropriation of $12,584,000. OFFICE OF BUDGET AND PROGRAM ANALYSIS 2013 appropriation*................................... $8,822,000 2014 budget estimate.................................. 11,129,000 Provided in the bill.................................. 8,767,000 Comparison: 2013 appropriation................................ -55,000 2014 budget estimate.............................. -2,362,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of Budget and Program Analysis, the Committee provides an appropriation of $8,767,000. Office of the Chief Information Officer 2013 appropriation*................................... $42,925,000 2014 budget estimate.................................. 44,159,000 Provided in the bill.................................. 42,925,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -1,234,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Chief Information Officer, the Committee provides an appropriation of $42,925,000. Cybersecurity Priorities.--The Committee continues to be concerned with the shortcomings in information technology (IT) security efforts at USDA. Despite recent Congressional investments and progress under new OCIO leadership, USDA's Office of Inspector General's independent evaluation of USDA's IT security program and practices in 2012 revealed continued material weaknesses in the design and effectiveness of USDA's overall IT security program. The Committee directs USDA to report to the Committee no later than 60 days after the date of enactment on the most recent efforts and progress made toward securing IT data and infrastructure from cyber threats. Office of the Chief Financial Officer 2013 appropriation*................................... $6,090,000 2014 budget estimate.................................. 6,243,000 Provided in the bill.................................. 6,090,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -153,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Chief Financial Officer, the Committee provides an appropriation of $6,090,000. Assessments.--The Committee remains concerned that the assessments the Department charges its agencies for government- and department-wide activities continue to escalate. Since these assessments are borne by the agencies, and Congress did not specifically provide increases to the agencies for these costs, most of the funding for the increase has come at the expense of programs. The Committee continues to direct the Office of the Chief Financial Officer to scrutinize the need for each activity, to consider its benefit to the mission of each agency, and to limit spending wherever possible, especially in regards to assessments for the creative media and broadcast center; promotional, voluntary activities; and activities not specifically authorized by Congress. Office of the Assistant Secretary for Civil Rights 2013 appropriation*................................... $871,000 2014 budget estimate.................................. 898,000 Provided in the bill.................................. 871,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -27,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Assistant Secretary for Civil Rights, the Committee provides an appropriation of $871,000. Office of Civil Rights 2013 appropriation*................................... $22,122,000 2014 budget estimate.................................. 21,550,000 Provided in the bill.................................. 20,540,000 Comparison: 2013 appropriation................................ -1,582,000 2014 budget estimate.............................. -1,010,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of Civil Rights, the Committee provides an appropriation of $20,540,000. Agriculture Buildings and Facilities (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $239,686,000 2014 budget estimate.................................. 233,095,000 Provided in the bill.................................. 64,658,000 Comparison: 2013 appropriation................................ -175,028,000 2014 budget estimate.............................. -168,437,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. For Agriculture Buildings and Facilities, the Committee provides an appropriation of $64,658,000. Section 732 requires the agencies to fund GSA rental payments from within the discretionary levels appropriated in this Act. The Committee is concerned that GSA rental expenses have risen by more than thirty-three percent over the past ten years, and without more agency attention to these costs, GSA rent will continue to increase. By requiring agencies to bear the expense of GSA rent directly, the Committee expects agencies to focus on ways to reduce these costs. The following table represents the Committee's specific recommendations for this account: [Dollars in Thousands] ------------------------------------------------------------------------ 2013 2014 budget Committee enacted* request recommendation ------------------------------------------------------------------------ Rental Payments................. $175,694 $164,270 - - - Department of Homeland Security Building Security............... 13,134 14,000 $13,800 Building Operations............. 50,858 54,825 50,858 Total........................... 239,686 233,095 64,658 ------------------------------------------------------------------------ *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. Hazardous Materials Management (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $3,892,000 2014 budget estimate.................................. 3,600,000 Provided in the bill.................................. 3,520,000 Comparison: 2013 appropriation................................ -372,000 2014 budget estimate.............................. -80,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Hazardous Materials Management, the Committee provides an appropriation of $3,520,000. Office of Inspector General 2013 appropriation*................................... $86,779,000 2014 budget estimate.................................. 89,902,000 Provided in the bill.................................. 86,779,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -3,123,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of Inspector General, the Committee provides an appropriation of $86,779,000. Anti-Fraud Efforts.--The Committee appreciates OIG's continued efforts to raise public awareness of successful Federal investigations of fraud. Such efforts are intended to deter participants from engaging in the misuse of taxpayer dollars and to maintain a high level of integrity in all of USDA's programs. The Committee encourages OIG to expand its efforts, working with all of USDA's agencies to deter fraud, waste, and abuse in the Department's programs. Office of the General Counsel 2013 appropriation*................................... $43,941,000 2014 budget estimate.................................. 45,014,000 Provided in the bill.................................. 40,558,000 Comparison: 2013 appropriation................................ -3,383,000 2014 budget estimate.............................. -4,456,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Office of the General Counsel, the Committee provides an appropriation of $40,558,000. Office of Ethics 2013 appropriation*................................... $3,319,000 2014 budget estimate.................................. - - - Provided in the bill.................................. 3,337,000 Comparison: 2013 appropriation................................ +18,000 2014 budget estimate.............................. +3,337,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of Ethics, the Committee provides an appropriation of $3,337,000. Office of the Under Secretary for Research, Education, and Economics 2013 appropriation*................................... $871,000 2014 budget estimate.................................. 898,000 Provided in the bill.................................. 871,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -27,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Under Secretary for Research, Education, and Economics, the Committee provides an appropriation of $871,000. Brown Marmorated Stink Bug.--The Committee appreciates the continuing work of ARS and NIFA regarding the Brown Marmorated Stink Bug. This pest is causing significant damage to agricultural crops, particularly the apple crop in the mid- Atlantic States, and has spread to more than 30 States and the District of Columbia. The Committee encourages ARS and NIFA to work collaboratively with APHIS and state partners to identify and implement appropriate controls. Herbicide Resistance Research.--The Committee encourages ARS and NIFA to address herbicide resistance through research, education, and extension. Research may include: identification of herbicide resistant weed populations, characterization of mechanisms of resistance, and development of innovative weed management strategies. The Committee encourages ARS and NIFA to work closely with NRCS and to incorporate, where appropriate, the conservation technical and financial assistance available to producers for adopting resistance management strategies. Lyme Disease Research.--The Committee recognizes the importance of the ongoing research efforts of ARS and NIFA regarding tick-borne illnesses. As the agency continues to build upon its research efforts to protect humans and livestock from tick-borne illnesses, the Committee encourages the ARS, in conjunction with other agencies, to maintain its efforts and consider both the human and economic impacts of Lyme disease on communities in the United States. Economic Research Service 2013 appropriation*................................... $75,452,000 2014 budget estimate.................................. 78,506,000 Provided in the bill.................................. 75,452,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -3,054,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Economic Research Service, the Committee provides an appropriation of $75,452,000. Local and Regional Food Production.--The Committee directs ERS to coordinate USDA's agencies involved in data collection, analysis, and research to make available the best data related to the production, pricing, distribution, and marketing of locally and regionally produced agricultural products and to identify data gaps. The Committee requests that ERS provide a report that assesses the scope and trends in local and regional food systems and to make that report publically available on the agency's website. National Agricultural Statistics Service 2013 appropriation*................................... $174,967,000 2014 budget estimate.................................. 159,601,000 Provided in the bill.................................. 154,762,000 Comparison: 2013 appropriation................................ -20,205,000 2014 budget estimate.............................. -4,839,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the National Agricultural Statistics Service, the Committee provides an appropriation of $154,762,000, of which $42,295,000 is for the Census of Agriculture. NASS Reports.--The Committee requests NASS to report to the Committees on Appropriations of the House and Senate on the resources required to restart surveys and reports for those commodities that do not have marketing orders or other publicly supported production information by March 1, 2014. Agricultural Research Service SALARIES AND EXPENSES 2013 appropriation*................................... $1,074,163,000 2014 budget estimate.................................. 1,124,003,000 Provided in the bill.................................. 1,074,163,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -49,840,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Salaries and Expenses of the Agricultural Research Service, the Committee provides an appropriation of $1,074,163,000. The Committee concurs with the agency's proposed redirection of ongoing research within the same location. The Committee directs ARS to maintain existing investments before beginning any new initiatives. Aerial Application Research.--The Committee recognizes the importance of the ARS Aerial Application Technology Program. The program conducts innovative research making aerial applications more efficient, effective, and precise. Research for aerial application serves the public good as a vital tool for the future, as agriculture strives to meet the food, fiber, and bio-energy demands of a growing population. Cheat Grass Eradication.--The Committee encourages ARS to continue research on cheat grass eradication, control, and the reduction of fuel loads, including late-season grazing techniques, and to work with the NRCS on this effort. Citrus Greening Disease Research.--The Committee commends ARS's research efforts on citrus greening disease and encourages the agency to continue working to develop methods to reduce transmission and enhance immunity in citrus trees and to work with industry, universities, growers, and other partners to develop effective control mechanisms. Classical Plant Breeding.--The Committee is aware of the need for classical plant breeding and encourages ARS to invest in research to improve genetic resources and cultivars for the benefit of U.S. producers, seed companies, processors, and consumers. This research should focus on breeding improved germplasm and varieties with higher yields, improved disease and pest resistance, and resilience to weather extremes. Additionally, methods and tools should be developed to enable classical breeders to choose better breeding parents and speed up variety development. Domestic and Bighorn Sheep.--The Committee recognizes the challenges caused by infectious disease problems arising from wildlife-domestic animal agriculture interactions, particularly between domestic sheep and wild bighorn sheep. Research has recently produced an experimental vaccine to protect bighorn populations from disease but much work still needs to be done in this area. The Committee encourages ARS to work to determine the role of domestic sheep in causing die-offs of bighorn sheep from respiratory disease and develop methods to reduce transmission and enhance immunity. Emerging Cereal Rust Diseases.--The Committee continues to be concerned about emerging cereal rust diseases, particularly Ug99, and the threat they pose to domestic and world food supplies. The Committee encourages ARS to continue its work on these diseases, including the development of Ug99-resistant wheat varieties. Food Pathogen Detection.--The Committee notes the advances in the detection of dangerous pathogens in the food supply and encourages ARS to continue research to increase the efficiency and cost-effectiveness of new technologies. FOV Race 4 Cotton Research.--The Committee recognizes the serious threat that fusarium oxysporum f. sp. Vasinfectum (FOV), particularly the strain FOV Race 4, poses to the U.S. cotton industry. The Committee encourages ARS to continue research efforts to combat FOV Race 4 and to work with industry and other partners to develop effective control measures to eradicate this disease and prevent its spread nationwide. Horticultural Research and Education.--The Committee recognizes that the U.S. National Arboretum has completed a comprehensive strategic plan. This plan emphasizes the role of the Arboretum as a center of discovery and education, as well as a destination for more than half a million visitors every year. This plan effectively captures the essence of the value of the Arboretum, and the Committee urges ARS to exercise existing authorities and provide the necessary resources to support implementation of the plan's goals. The Committee requests a report on the progress toward implementation of the Arboretum's Strategic Plan by March 1, 2014. Human Nutrition Research.--The Committee remains concerned about the high rate of obesity in the Nation and believes that research on human nutrition to help prevent childhood obesity and the medical issues related to obesity are important. In addition, there is strong evidence that nutrition plays a vital role in how a person ages. The Committee encourages ARS to continue research relating both to childhood and adult obesity as well as the effect of nutrition on aging. Lower Mississippi River Basin.--The Committee recognizes the groundwater problems in the Lower Mississippi River Basin and encourages ARS to continue research to quantify how appropriate use of conservation practices and technology affect water quantity. National Agricultural Library.--The Committee requests that ARS maintain a focus on agriculture-related legal issues within the National Agricultural Library. The Committee recognizes agriculture-related legal issues are being litigated on an increasingly frequent basis, the complexity and scope of these legal issues continues to broaden, and that the National Agricultural Library plays an important role in assisting all stakeholders understand these issues. Natural Products Research.--The Committee recognizes the importance of developing natural products for use in agriculture in order to produce more toxicologically and environmentally benign pest management tools and to improve the nutriceutical value of crops. New England Plant, Soil, and Water Research.--The Committee directs ARS to report on its efforts to meet the challenges faced by farmers and ranchers in New England and make any recommendations to the Committees on Appropriations of the House and Senate by March 1, 2014. Office of Pest Management Policy.--The Committee commends the Office of Pest Management Policy for its work providing the Department, other Federal agencies, producers, and others scientifically sound analysis of pest management issues important to agriculture, especially methyl bromide transition and pesticide resistance, and encourages the agency to continue to support this office. Research on Sediments.--The Committee recognizes the importance of finding solutions to the problems associated with soil erosion, including erosion and sedimentation in stream channels and the loss of nutrients and agricultural chemicals from farm fields. Wheat and Barley Scab Initiative.--The Committee expresses support for this initiative and directs the agency to continue research on wheat and barley scab and related issues. BUILDINGS AND FACILITIES 2013 appropriation*................................... - - - 2014 budget estimate.................................. $155,000,000 Provided in the bill.................................. - - - Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -155,000,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For ARS Buildings and Facilities, the Committee is unable to provide funding for new construction due to the tight budget cap. National Institute of Food and Agriculture RESEARCH AND EDUCATION ACTIVITIES 2013 appropriation*................................... $720,076,000 2014 budget estimate.................................. 801,140,000 Provided in the bill.................................. 718,714,000 Comparison: 2013 appropriation................................ -1,362,000 2014 budget estimate.............................. -82,426,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Research and Education Activities, the Committee provides an appropriation of $718,714,000. Agricultural Research Enhancement Awards.--The Committee continues to direct that not less than 10 percent of the competitive research grant funds be used for USDA's agriculture research enhancement awards program, including USDA-EPSCoR, in accordance with 7 U.S.C. 450i. Aquaculture Research.--The Committee recognizes the importance of the domestic aquaculture industry and encourages NIFA to fund research related to genetics, disease, systems, and economics. Budget Request for Fiscal Year 2015.--For the fiscal year 2015 budget request, the Committee directs the Department to include in the budget funding levels proposed to be allocated to and the expected publication date, scope, and allocation level for each request for awards to be published under (1) each priority area specified in section 2(b)(2) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(2)); (2) each research and extension project carried out under section 1621(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5811(a)); (3) each grant awarded under section 1672B(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(a)); (4) each research, education, and extension project carried out under section 406 of the Research Reform Act of 1998 (7 U.S.C. 7626); and (5) each research and extension project carried out under section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632). The term `request for awards' means a funding announcement published by NIFA that provides detailed information on funding opportunities at the Institute, including the purpose, eligibility, restrictions, focus areas, evaluation criteria, regulatory information, and instructions on how to apply for such opportunities. Grants for Insular Areas.--The Committee provides authorization for Grants for Insular Areas to be used to upgrade agriculture and food sciences facilities and equipment in addition to being used for resident instruction and distance education programs at the land-grant institutions in the Insular Areas. Livestock and Poultry Waste Research.--The Committee recognizes the benefits of improved methods of managing animal waste in livestock and poultry production and encourages NIFA to support research and development of innovative technologies, particularly those that are operationally and economically feasible and have a high probability of widespread implementation. Program Consolidation and Streamlining.--The Committee accepts NIFA's proposal to consolidate sustainable agriculture programs and pest management programs. Regional Research.--The Committee recognizes that State and regional research has a history of success in addressing critical pest, disease, and production problems specific to their region, and that these programs help producers across the Nation remain productive. STEM Initiatives.--The Committee recognizes the importance of programs to advance the education and training of minorities in STEM careers for the Nation's national and economic security and encourages NIFA to continue to support these initiatives. STEM Program Effectiveness.--The Committee is concerned about STEM workforce development for underrepresented minorities and notes the National Academy of Science's recommendations for increasing the participation and success of minority students. The Committee encourages the Department to emphasize STEM education improvement with the Historically Black Colleges and Universities. The following table reflects the amount provided by the Committee: RESEARCH AND EDUCATION ACTIVITIES [Dollars in Thousands] ---------------------------------------------------------------------------------------------------------------- 2013 2014 Committee Program/Activity Authorization enacted estimate provision ---------------------------------------------------------------------------------------------------------------- Hatch Act 7 U.S.C. 361a-i................. $230,394 $236,334 $236,334 McIntire-Stennis Cooperative Forestry Act 16 U.S.C. 582a through a-7...... 32,106 32,934 32,934 Research at 1890 Institutions (Evans-Allen 7 U.S.C. 3222................... 49,619 50,898 50,898 Program) Payments to the 1994 Institutions............ 534(a)(1) of P.L. 103-382....... 3,251 3,335 3,335 Education Grants for 1890 Institutions....... 7 U.S.C. 3152(b)................ 18,850 19,336 19,336 Education Grants for Hispanic-Serving 7 U.S.C. 3241................... 8,987 9,219 9,219 Institutions. Education Grants for Alaska Native and Native 7 U.S.C. 3156................... 3,114 3,194 3,194 Hawaiian-Serving Institutions Research Grants for 1994 Institutions........ 536 of P.L. 103-382............. 1,756 1,801 1,801 Capacity Building for Non Land-Grant Colleges 7 U.S.C. 3319i.................. 4,387 - - - - - - of Agriculture Grants for Insular Areas..................... 7 U.S.C. 3222b-2, 3363 and 3362. 1,609 1,650 1,800 Agriculture and Food Research Initiative..... 7 U.S.C. 450i(b)................ 290,468 383,376 290,657 Veterinary Medicine Loan Repayment........... 7 U.S.C. 3151a.................. 4,670 4,790 4,790 Continuing Animal Health and Disease Research 7 U.S.C. 3195................... 3,899 - - - 4,000 Program Supplemental and Alternative Crops........... 7 U.S.C. 3319d.................. 804 - - - - - - Critical Agricultural Materials Act.......... 7 U.S.C. 178 et seq............. 1,054 - - - - - - Multicultural Scholars, Graduate Fellowship 7 U.S.C. 3152(b)................ 8,774 - - - 9,000 and Institution Challenge Grants Secondary and 2-year Post-Secondary Education 7 U.S.C. 3152(j)................ 877 - - - 900 Aquaculture Centers.......................... 7 U.S.C. 3322................... 3,899 3,920 3,920 Sustainable Agriculture Research and 7 U.S.C. 5811................... 14,107 22,667 19,049 Education. Farm Business Management..................... 7 U.S.C. 5925f.................. 1,414 - - - - - - Sun Grant Program............................ 7 U.S.C. 8114................... 2,437 - - - - - - Improved Pest Control: Expert IPM Decision Support System....... 7 U.S.C. 450i(c)................ 149 - - - - - - Integrated Pest Management............... ................................ 2,303 - - - - - - Minor Crop Pest Management (IR-4)........ ................................ 11,614 11,913 11,913 Pest Management Alternatives............. ................................ 1,367 - - - - - - -------------------------------- Total, Improved Pest Control........... ................................ 15,433 11,913 11,913 Special Research Grants: Global Change/UV Monitoring.............. 7 U.S.C. 450i(c)................ 1,370 1,405 1,405 Potato Research.......................... ................................ 1,316 - - - - - - Forest Products Research................. ................................ 1,609 - - - - - - -------------------------------- Total, Special Research Grants......... ................................ 4,295 1,405 1,405 Necessary Expenses of Research and Education Activities: Grants Management Systems................ ................................ 7,633 7,830 7,830 Federal Administration--Other Necessary ................................ 6,239 6,538 6,399 Expenses for Research and Education Activities -------------------------------- Total, Necessary Expenses.............. ................................ 13,872 14,368 14,229 ================================ Total, Research and Education ................................ 720,076 801,140 718,714 Activities. ---------------------------------------------------------------------------------------------------------------- NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND 2013 appropriation*................................... ($11,880,000) 2014 budget estimate.................................. (11,880,000) Provided in the bill.................................. (11,880,000) Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. - - - *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Native American Institutions Endowment Fund, the Committee provides $11,880,000. The Committee notes that the endowment fund has a cost of $5,000,000 for fiscal year 2014. EXTENSION ACTIVITIES 2013 appropriation*................................... $463,896,000 2014 budget estimate.................................. 459,037,000 Provided in the bill.................................. 459,011,000 Comparison: 2013 appropriation................................ -4,885,000 2014 budget estimate.............................. -26,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Extension Activities, the Committee provides an appropriation of $459,011,000. EFNEP and Persons with Disabilities.--The Committee recognizes the importance of agricultural education and vocational training for persons with developmental disabilities and encourages collaborations between non-profit organizations and elementary and secondary schools. In particular, the Committee encourages NIFA to use the Expanded Food and Nutrition Education Program to explore opportunities to support initiatives that strive to provide agricultural education and vocational experiences by pairing schools with non-profit organizations dedicated to improving the lives of persons with disabilities. The following table reflects the amount provided by the Committee: NATIONAL INSTITUTE OF FOOD AND AGRICULTURE EXTENSION ACTIVITIES [Dollars in Thousands] ---------------------------------------------------------------------------------------------------------------- FY 2013 FY 2014 Committee Program/Activity Authorization enacted estimate provision ---------------------------------------------------------------------------------------------------------------- Smith-Lever Act, Section 3(b) and (c) 7 U.S.C. 343(b) and (c) and $286,612 $294,000 $294,000 programs and Cooperative Extension 208(c) of P.L. 93-471. Extension Services at 1890 Institutions...... 7 U.S.C. 3221................... 41,522 42,592 42,592 Extension Services at 1994 Institutions...... 7 U.S.C. 343(b)(3).............. 4,204 4,312 4,312 Facility Improvements at 1890 Institutions... 7 U.S.C. 3222b.................. 19,234 19,730 19,730 Renewable Resources Extension Act............ 16 U.S.C. 1671 et. seq.......... 3,607 4,060 3,700 Rural Health and Safety Education Programs... 7 U.S.C. 2662(i)................ 1,462 - - - - - - Food Animal Residue Avoidance Database 7 U.S.C. 7642................... 975 - - - 1,250 Program. Women and Minorities in STEM Fields.......... 7 U.S.C. 5925................... 390 - - - 400 Grants to Youth Organizations................ 7 U.S.C. 7630................... 711 - - - - - - Smith-Lever Act, Section 3(d): Food and Nutrition Education............. 7 U.S.C. 343(d)................. 66,227 67,934 67,934 Pest Management.......................... ................................ 9,669 - - - - - - Farm Safety and Youth Farm Safety ................................ 4,494 4,610 4,610 Education Programs New Technologies for Agricultural ................................ 1,511 1,750 1,550 Extension. Children, Youth, and Families at Risk.... ................................ 7,409 8,395 7,600 Federally Recognized Tribes Extension ................................ 2,963 3,039 3,039 Program. Sustainable Agriculture Programs......... ................................ 4,578 - - - - - - -------------------------------- Total, Section 3(d).................... ................................ 96,851 85,728 84,733 Necessary Expenses of Extension Activities: Agriculture in the K-12 Classroom........ ................................ 538 - - - 552 Federal Administration--Other Necessary ................................ 7,790 8,615 7,742 Expenses for Extension Activities -------------------------------- Total, Necessary Expenses.............. ................................ 8,328 8,615 8,294 ================================ Total, Extension Activities.......... ................................ 463,896 459,037 459,011 ---------------------------------------------------------------------------------------------------------------- INTEGRATED ACTIVITIES 2013 appropriation*................................... $20,942,000 2014 budget estimate.................................. 28,129,000 Provided in the bill.................................. 31,137,000 Comparison: 2013 appropriation................................ +10,195,000 2014 budget estimate.............................. +3,008,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Integrated Activities, the Committee provides an appropriation of $31,137,000. The following table reflects the amount provided by the Committee. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE INTEGRATED ACTIVITIES (Dollars in Thousands) ---------------------------------------------------------------------------------------------------------------- FY 2013 FY 2014 Committee Program/activity Authorization enacted estimate provision ---------------------------------------------------------------------------------------------------------------- Water Quality Program................................. 7 U.S.C. 7626 $4,387 - - - - - - Regional Pest Management Centers...................... 7 U.S.C. 7626 3,899 - - - - - - Methyl Bromide Transition Program..................... 7 U.S.C. 7626 1,946 - - - $1,996 Organic Transition Program............................ 7 U.S.C. 7626 3,899 $4,000 4,000 Regional Rural Development Centers.................... 7 U.S.C. 450i(c) 973 998 998 Food and Agriculture Defense Initiative............... 7 U.S.C. 3351 5,838 5,988 7,000 Crop Protection/Pest Management Program............... 7 U.S.C. 7626 - - - 17,143 17,143 --------------------------------------------------------- Total, Integrated Activities...................... 20,942 28,129 31,137 ---------------------------------------------------------------------------------------------------------------- Office of the Under Secretary for Marketing and Regulatory Programs 2013 appropriation*................................... $871,000 2014 budget estimate.................................. 898,000 Provided in the bill.................................. 871,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -27,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Under Secretary for Marketing and Regulatory Programs, the Committee provides an appropriation of $871,000. Animal and Plant Health Inspection Service SALARIES AND EXPENSES (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $801,198,000 2014 budget estimate.................................. 797,601,000 Provided in the bill.................................. 803,538,000 Comparison: 2013 appropriation................................ +2,340,000 2014 budget estimate.............................. +5,937,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Animal and Plant Health Inspection Service, Salaries and Expenses, the Committee provides an appropriation of $803,538,000. The following table reflects the amounts provided by the Committee: Committee provision Animal Health Technical Services........................ $34,500,000 Aquatic Animal Health................................... 2,272,000 Avian Health............................................ 52,340,000 Cattle Health........................................... 93,000,000 Equine, Cervid, and Small Ruminant Health............... 19,169,000 National Veterinary Stockpile........................... 2,750,000 Swine Health............................................ 23,000,000 Veterinary Biologics.................................... 16,457,000 Veterinary Diagnostics.................................. 31,611,000 Zoonotic Disease Management............................. 9,023,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Animal Health............................. 284,122,000 Agricultural Quarantine Inspection (Appropriated)....... 25,298,000 Cotton Pests............................................ 12,720,000 Field Crop & Rangeland Ecosystem Pests.................. 8,877,000 Pest Detection.......................................... 27,500,000 Plant Protection Methods Development.................... 20,673,000 Specialty Crop Pests.................................... 148,489,000 Tree & Wood Pests....................................... 48,290,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Plant Health.............................. 291,847,000 Wildlife Damage Management.............................. 86,104,000 Wildlife Services Methods Development................... 19,000,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Wildlife Services......................... 105,104,000 Animal & Plant Health Regulatory Enforcement............ 16,275,000 Biotechnology Regulatory Services....................... 18,215,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Regulatory Services....................... 34,490,000 Contingency Fund........................................ - - - Emergency Preparedness & Response....................... 17,000,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Safeguarding and Emergency Preparedness... 17,000,000 Agriculture Import/Export............................... 14,181,000 Overseas Technical and Trade Operations................. 20,114,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Safe Trade & International Technical Assistance........................................ 34,295,000 Animal Welfare.......................................... 27,087,000 Horse Protection........................................ 500,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Animal Welfare............................ 27,587,000 APHIS Information Technology Infrastructure............. 4,167,000 Physical/Operational Security........................... 4,926,000 -------------------------------------------------------- ____________________________________________________ Subtotal, Agency Management......................... 9,093,000 ======================================================== ____________________________________________________ Total, Salaries & Expenses...................... 803,538,000 Animal Welfare.--The bill funds the Animal Welfare program at $27,587,000, in order to ensure that minimum standards of care and treatment are provided for certain animals bred for commercial sale, used in research, transported commercially, or exhibited to the public. Brown Marmorated Stink Bug.--The Committee is aware of the growing threat to fruits, vegetables, other crops, and ornamentals throughout the mid-Atlantic region from the Brown Marmorated Stink Bug. It has been found in more than 30 States and the District of Columbia. The Committee directs APHIS to treat this pest as a priority and to continue to assist ARS, NIFA, and state partners with biological control technology once such tools are available. Budget Restructure.--The Committee does not support the request in the President's fiscal year 2014 budget for APHIS to fund two separate accounts for Equine and Cervid Health and Sheep and Goat Health. Cervid Health.--The latest data from 2007 indicate that the cervid industry in the U.S. accounts for 5,600 deer farms and 1,900 elk farms, has an economic value of $894 million, and supports nearly 30,000 jobs. This industry is currently adapting to a 2012 interim final rule that established a national, voluntary herd certification program (HCP) that provides uniform herd certification standards and will support the domestic and international marketability of U.S. cervid herds. The Committee believes that the industry requires additional support to ensure that the newly implemented chronic wasting disease HCP is successful. Therefore, APHIS should spend no less than $3,000,000 for cervid health activities. Within the funds provided, APHIS should give consideration to indemnity payments if warranted. Citrus Health Response Program (CHRP).--CHRP is a nationwide effort to protect the U.S. industry from the ravages of invasive pests and diseases. Funds provided for this program allow APHIS to partner with States and local entities to address the challenges of a disease-spreading vector until a cure can be developed. In addition to the funds provided in this account, the Committee encourages APHIS to utilize the funds available in the Plant Pest and Disease Management and Disaster Prevention account to the greatest extent possible in an attempt to sustain the economic viability of the citrus industry. APHIS Cargo Release.--The Committee recommends that USDA/ APHIS continue to work with the Department of Homeland Security's Custom and Border Protection (CBP) in order to facilitate the release of cargo at commercial import facilities by ensuring that CBP inspectors and managers earn Cargo Release Authority certification for those non-reportable species and groups of organisms listed in the Cargo Release Plan. Such coordination will allow CBP officials to release cargo where CBP may find very distinctive organisms not of agricultural significance and allow APHIS entomologists, plant pathologists, and botanists to make release decisions upon discovery of those reportable organisms that may pose a threat to the Nation's agricultural security. Cost Sharing with States and Other Cooperators.--The Committee directs APHIS to maximize the use of cost sharing agreements or matching requirements with States, Territories, producers, foreign governments, non-governmental organizations, and any other recipient of services in order to reduce the cost burden on the agency. Cotton Pests.--The Committee is concerned about the reappearance of the boll weevil in certain portions of the United States. The Boll Weevil Eradication Program has successfully eradicated the boll weevil from all U.S. cotton areas except for the extreme lower parts of Texas in the Lower Rio Grande Valley (LRGV) bordering Tamaulipas, Mexico. The LRGV continues an active battle to eradicate the boll weevil. The LRGV also serves as the barrier between Mexico and boll weevil- free areas of the United States. The Department is directed to work with the U.S. cotton industry to develop a plan of action to protect the United States from re-infestation and report its findings to the Committee not less than 120 days after enactment of this bill. Danger Pay.--The Committee recognizes the concern of those employees in areas designated by the Department of State as a Section 920 post and encourages APHIS to determine compensation of employees in Section 920 areas similarly. Designated Qualified Person Program.--The Committee directs APHIS to maintain transparency and consistency in the enforcement of the Horse Protection Act when dealing with the regulated industry. Emerging Plant Pests.--The Committee expects the Secretary to continue to use the authority provided in this bill to transfer funds from the Commodity Credit Corporation (CCC) for the arrest and eradication of animal and plant pests and diseases that threaten American agriculture. By providing funds in this account, the Committee is enhancing, not replacing, the use of CCC funding for emergency outbreaks. Feral Swine Management.--The Committee is aware of the growing economic and ecological damage caused by feral swine across the United States. Conservative estimates indicate feral swine are present in 44 States, and agricultural losses and control efforts cost $1.5 billion annually. The Committee understands that computer models have shown that lethal methods combined with contraception could significantly reduce feral swine populations over several years. In addition to the Committee's support for the Department's proposed increased funding for feral swine management, the Committee encourages Wildlife Services to explore development and field testing of non-hormonal, species-specific oral contraceptives, such as phaged-peptide constructs. Huanglongbing.--The Committee encourages APHIS to support its state partners through exclusion and eradication activities associated with the Asian Citrus Psyllid, the primary vector of the bacterium that causes Huanglongbing/citrus greening disease. In addition, the agency should continue to work with ARS, citrus-producing States, industry stakeholders, and universities on their research efforts to develop additional control mechanisms. National Poultry Improvement Plan.--The Committee supports the cooperative efforts of USDA, States, academia, and industry as part of the National Poultry Improvement Plan (NPIP). NPIP is internationally recognized as an independent, government poultry disease control program. Sufficient resources are included to staff the national office, administer the program, and to ensure that the NPIP continues its vital, successful role in protecting this important industry and source of high quality protein-rich foods for domestic and international markets. Through the program's collaborative efforts, NPIP effectively and efficiently protects the quality, productivity, and economic viability of the $200 billion U.S. poultry industry and the nearly 900,000 jobs associated with it. Phytopthora ramorum.--The Committee expects APHIS to continue its efforts to manage P. ramorum while minimizing disruption to the interstate movement of plant materials and commercial trade. The agency should use an appropriate portion of funds from the Specialty Crop Pest account to expeditiously implement the review of the Federal order governing shipment of plant materials from quarantined and regulated counties, as well as to continue its review of the efficacy of the pre- notification requirements for western nurseries. APHIS should also continue efforts to partner with the regulated States to develop new best management practices regarding P. ramorum during the effective period of the order. Plant Pest and Disease Management and Disaster.--The Committee expects APHIS to obligate the $50,000,000 provided in the 2008 farm bill (P.L. 110-234) in accordance with Congressional priorities and the criteria described under Special Funding Considerations (Section 10201(b)(6) of P.L. 110-234). USDA should prioritize the funds provided by Section 10201 for the purpose of early plant pest detection and surveillance in conjunction with the funds provided in this bill. Potato Cyst Nematode Eradication.--The Committee encourages APHIS to fund the Potato Cyst Nematode eradication program above the spending level in fiscal year 2013 in order to continue with successful efforts to eradicate this pest. If left untreated, this pest could spread, affecting other crops. Wildlife Damage Management.--While receiving support from cooperators to conduct wildlife management operations, special emphasis should be placed on those areas such as oral rabies vaccination, livestock protection, predator damage management, and other such activities that will reduce or eliminate threats to agricultural industries. The Committee expects APHIS to fund national rabies control and surveillance efforts at the same levels expended in fiscal years 2011 and 2012. BUILDINGS AND FACILITIES 2013 appropriation*............................... $3,095,000 2014 budget estimate.............................. 3,175,000 Provided in the bill.............................. - - - Comparison: 2013 appropriation............................ -3,095,000 2014 budget estimate.......................... -3,175,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS The Committee does not provide an appropriation for this account. Agricultural Marketing Service MARKETING SERVICES 2013 appropriation*................................... $76,881,000 2014 budget estimate.................................. 82,792,000 Provided in the bill.................................. 77,035,000 Comparison: 2013 appropriation................................ +154,000 2014 budget estimate.............................. -5,757,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Marketing Services of the Agricultural Marketing Service, the Committee provides an appropriation of $77,035,000. Mandatory COOL Labeling.--The final rule dealing with mandatory Country of Origin Labeling of beef, pork, and other covered muscle meats sold in U.S. retail establishments is creating great uncertainty for U.S. meat packing, processing, and production companies as well as U.S. retail establishments. While the final rule became effective May 23, 2013, in order to comply with the World Trade Organization (WTO) findings, USDA's final rule will not likely meet the full demands made by the governments of Canada and Mexico. By USDA's own estimate, the range in estimated costs to industry of the final rule will be $53.1 million to $192.1 million and affect 7,181 firms and 33,350 establishments. If the final rule does not produce a resolution, ongoing negotiations between the three countries will only create increased costs and indecision in how the firms meet regulatory requirements. Therefore, the Committee strongly encourages USDA to delay implementation and enforcement of the final rule published on May 24, 2013, (78 Fed. Reg. 31367) until the WTO has completed all decisions related to cases WT/DS384 and WT/DS386. National Organic Program.--The Committee recommendation includes a one million increase above the fiscal year 2012 level for the National Organic Program. Pesticide Recordkeeping Program.--The Committee concurs with the Administration's proposal to eliminate funding for the Pesticide Recordkeeping Program (PRP) and recommends that the States and territories operating under the Federal recordkeeping regulations transition to a program such as those operating in 23 States and one Territory with their own compliance review programs under federally-recognized state pesticide recordkeeping requirements. As noted in the Administration's fiscal year 2013 proposal, ``this program is not central to the core mission of AMS, which is to facilitate the competitive and efficient marketing of agricultural products.'' The termination of the PRP will result in a savings of $1.8 million as proposed in the budget. Program Levels.--The Committee recommendation includes funding at the President's request level for Marketing News and Surveillance and Standardization Programs. Seafood in Nutrition Programs.--USDA's Dietary Guidelines for Americans 2010 recommends increased intake of seafood, especially those products with high levels of omega-3 fatty acids. Due in large part to USDA's own regulations, canned tuna is currently prohibited from purchase by the Department for inclusion in school nutrition programs. The Committee directs USDA to report to the Committees on Appropriations within 60 days of enactment on potential ways that would allow a revision of the Master Solicitation for Commodity Procurement to allow for the purchase of canned tuna. The report should address the requirement that all tuna be landed by U.S.-flag fishing vessels; the option for less than 100 percent of the value of the tuna product be United States produced; and the requirement that all tuna products are canned in the United States, its territories, possessions, Puerto Rico, or the Trust Territories of the Pacific Islands. LIMITATION ON ADMINISTRATIVE EXPENSES 2013 limitation*...................................... ($62,592,000) 2014 budget limitation................................ (60,435,000) Provided in the bill.................................. (60,435,000) Comparison: 2013 limitation................................... -2,157,000 2014 budget limitation............................ - - - *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS The Committee provides a limitation of $60,435,000 on Administrative Expenses of the Agricultural Marketing Service. FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY (SECTION 32) MARKETING AGREEMENT AND ORDERS (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation.................................... ($20,056,000) 2014 budget estimate.................................. (20,181,000) Provided in the bill.................................. (20,181,000) Comparison: 2013 appropriation................................ +125,000 2014 budget estimate.............................. - - - COMMITTEE PROVISIONS For the Marketing Agreements and Orders Program, the Committee provides a transfer from section 32 funds of $20,181,000. Information Technology Support.--The amount provided in this account includes an increase of $6,818,000 for the information technology upgrades of the Web-Based Supply Chain Management system that allows AMS, the Farm Service Agency (FSA), the Foreign Agricultural Service (FAS), and the U.S. Agency for International Development to purchase U.S. commodities. The following table reflects the status of this fund for fiscal years 2013 and 2014: ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD FISCAL YEARS 2013-2014 [Dollars in Thousands] ------------------------------------------------------------------------ FY 2013 FY 2014 budget estimate estimate ------------------------------------------------------------------------ Appropriation (30% of Customs Receipts). $8,990,117 $9,211,183 Less Transfers: Food and Nutrition Service.......... -7,697,031 -7,815,038 Commerce Department................. -131,372 -130,144 ------------------------------- Total, Transfers................ -7,828,402 -7,945,183 Prior Year Appropriation Available, 219,286 117,000 Start of the Year...................... Prior Year Collections and Recoveries... 0 0 Unavailable for Obligations (recoveries 0 0 & offsetting collections).............. Transfer of Prior Year Funds to FNS -133,000 -117,000 (Fruit & Vegetable).................... ------------------------------- Budget Authority.................... 1,248,000 1,266,000 Rescission of Current Year Funds........ -109,608 -206,000 Appropriations Reduced by 5.1 Percent -40,392 0 due to Sequestration................... Appropriations Reduced by 7.2 Percent 0 -80,000 due to Sequestration................... Unavailable for Obligations (Fruit & -117,000 -119,000 Vegetable transfer to FNS)............. ------------------------------- Available for Obligation............ 981,000 861,000 Less Obligations: Child Nutrition Programs 465,000 465,000 (Entitlement Commodities).......... State Option Contract............... 5,000 5,000 Removal of Defective Commodities.... 2,500 2,500 Emergency Surplus Removal........... 106,400 0 Small Business Support.............. 0 0 Disaster Relief..................... 5,000 5,000 Additional Fruits, Vegetables, and 206,000 206,000 Nuts Purchases..................... Fresh Fruit and Vegetable Program... 41,000 40,000 Estimated Future Needs.............. 102,313 82,697 ------------------------------- Total, Commodity Procurement.... 933,213 806,197 Administrative Funds: Commodity Purchase Support...... 27,731 34,622 Marketing Agreements and Orders. 20,056 20,181 ------------------------------- Total, Administrative Funds... 47,787 54,803 ------------------------------- Total Obligations................... 981,000 861,000 Unobligated Balance, End of Year........ 0 0 Unavailable for Obligations (Fruit and 117,000 119,000 Vegetable transfer to FNS)............. Balances, Collections and Recoveries Not 0 0 Available.............................. =============================== Total End of Year Balances...... 117,000 119,000 ------------------------------------------------------------------------ PAYMENTS TO STATES AND POSSESSIONS 2013 appropriation*................................... $1,298,000 2014 budget estimate.................................. 1,363,000 Provided in the bill.................................. 1,171,000 Comparison: 2013 appropriation................................ -127,000 2014 budget estimate.............................. -192,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Payments to States and Possessions, the Committee provides an appropriation of $1,171,000. Grain Inspection, Packers and Stockyards Administration SALARIES AND EXPENSES 2013 appropriation*................................... $39,249,000 2014 budget estimate.................................. 40,531,000 Provided in the bill.................................. 39,249,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -1,282,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Grain Inspection, Packers and Stockyards Administration, the Committee provides $39,249,000. Program Levels.--The Committee recommendation includes funding at the requested level for the Grain Regulatory Program and funding at the fiscal year 2012 level for the Packers and Stockyards Program. LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES 2013 limitation....................................... ($50,000,000) 2014 budget limitation................................ (50,000,000) Provided in the bill.................................. (50,000,000) Comparison: 2013 limitation................................... - - - 2014 budget limitation............................ - - - COMMITTEE PROVISIONS The Committee includes a limitation on inspection and weighing services expenses of $50,000,000. The bill includes authority to exceed by 10 percent the limitation on inspection and weighing services with notification to the Committees on Appropriations. Office of the Under Secretary for Food Safety 2013 appropriation*................................... $791,000 2014 budget estimate.................................. 816,000 Provided in the bill.................................. 791,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -25,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Under Secretary for Food Safety, the Committee provides an appropriation of $791,000. Food Safety and Inspection Service 2013 appropriation*................................... $1,029,879,000 2014 budget estimate.................................. 1,008,473,000 Provided in the bill.................................. 998,762,000 Comparison: 2013 appropriation................................ -31,117,000 2014 budget estimate.............................. -9,711,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Food Safety and Inspection Service, the Committee provides an appropriation of $998,762,000. The Committee notes that FSIS has had $2,300,000 in its base budget since 2009 to fund the Cooperative Interstate Program, and that the budget request includes a $2,434,000 increase for a total of $4,734,000. Four states have applied to the program, and three have been accepted. While the Committee supports CIP, the proposal to add 20 states by the end of 2014 at an additional cost of $2,434,000 is not included in the recommendation. The following table reflects the Committee's recommendations for fiscal year 2014: [Dollars in Thousands] ------------------------------------------------------------------------ Committee provision ------------------------------------------------------------------------ Federal inspection.................................... $881,855 Public health data communication infrastructure system 34,580 International food safety and inspection.............. 15,841 State food safety and inspection...................... 62,734 Codex alimentarius.................................... 3,752 ----------------- Total, Food Safety and Inspection Service......... 998,762 ------------------------------------------------------------------------ Humane Methods of Slaughter.--FSIS shall ensure that inspectors hired with funding previously specified for Humane Methods of Slaughter Act enforcement focus their attention on overseeing compliance with humane handling rules for live animals as they arrive and are offloaded and handled in pens, chutes, and stunning areas, and that they receive robust national training, including on the Regulatory Essentials, Humane Animal Tracking System, and Public Health Information System. Buffalo/Bison Inspection.--The Committee urges FSIS to enhance its efforts to work with Tribes to set up voluntary, fee-for-service programs for the slaughter of Tribally-raised buffalo and bison. In doing so, FSIS should work with the Tribal Council and make the Council aware of such opportunities as mobile slaughter and trade associations such as the North American Meat Association and the American Association of Meat Processors which may be able to assist them in qualifying for inspection and starting operations. Regulations.--The Committee supports implementation of section 11016 of Public Law 110-246 and expects USDA to meet its statutory obligation and promulgate regulations to implement this section using the broad definition contained in its proposed rule. Reducing Foodborne Illnesses.--The Committee notes that the current poultry slaughter inspection system has been in place since 1957. On January 27, 2012, USDA proposed a science-based rule that would begin to replace this outdated approach, and replace it with one that is based on pathogen reduction and control. USDA inspectors would monitor establishment process controls in removing diseased birds, ensure compliance with Hazard Analysis Critical Control Point plans and Sanitation Standard Operating Procedures, conduct ante mortem inspection, and collect samples for pathogen testing. On-line inspectors will still conduct carcass-by-carcass inspection to ensure that diseased carcasses are condemned by establishment workers according to regulatory requirements. The Committee believes that implementation of this system, that has been tested over ten years, will lead to a reduction of pathogens in poultry and a corresponding reduction in foodborne illnesses, hospitalizations, and deaths. The Committee urges the Department to finalize this rule. FARM ASSISTANCE PROGRAMS Office of the Under Secretary for Farm and Foreign Agricultural Services 2013 appropriation*................................... $871,000 2014 budget estimate.................................. 898,000 Provided in the bill.................................. 871,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -27,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Under Secretary for Farm and Foreign Agricultural Services, the Committee provides an appropriation of $871,000. The Committee is concerned about waste, fraud, and abuse in programs administered by FSA and the Risk Management Agency (RMA). Therefore, the Secretary is directed to certify that any newly approved payment, loan, grant, subsidy, or insurance claim from a program administered by FSA or RMA does not include individuals or entities that have been permanently debarred from participating in USDA programs. Farm Service Agency SALARIES AND EXPENSES (INCLUDING TRANSFERS OF FUNDS) ---------------------------------------------------------------------------------------------------------------- Transfer from Appropriation program accounts Total, FSA S&E ---------------------------------------------------------------------------------------------------------------- 2013 appropriation*................................. $1,177,926,000 ($300,393,000) ($1,478,319,000) 2014 budget estimate................................ 1,176,460,000 (309,980,000) (1,486,440,000) Provided in the bill................................ 1,177,926,000 (300,393,000) (1,478,319,000) Comparison: 2013 appropriation - - - - - - - - - 2014 budget estimate +1,466,000 (-9,587,000) (-8,121,000) ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Salaries and Expenses of Farm Service Agency, the Committee provides an appropriation of $1,177,926,000 and transfers of $300,393,000 for a total program level of $1,478,319,000. STATE MEDIATION GRANTS 2013 appropriation*................................... $4,259,000 2014 budget estimate.................................. 3,782,000 Provided in the bill.................................. 4,259,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. +477,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For State Mediation Grants, the Committee provides an appropriation of $4,259,000. GRASSROOTS SOURCE WATER PROTECTION PROGRAM 2013 appropriation*................................... $5,362,000 2014 budget estimate.................................. - - - Provided in the bill.................................. 4,552,000 Comparison: 2013 appropriation................................ -810,000 2014 budget estimate.............................. +4,552,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Grassroots Source Water Protection Program, the Committee provides an appropriation of $4,552,000. DAIRY INDEMNITY PROGRAM (INCLUDING TRANSFER OF FUNDS) 2013 appropriation.................................... \1\$100,000 2014 budget estimate.................................. \1\250,000 Provided in the bill.................................. \1\250,000 Comparison: 2013 appropriation................................ +150,000 2014 budget estimate.............................. - - - \1\Current indefinite appropriation. COMMITTEE PROVISIONS For the Dairy Indemnity Program, the Committee provides an appropriation of such sums as may be necessary (estimated to be $250,000 in the President's fiscal year 2014 budget request). AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT (INCLUDING TRANSFER OF FUNDS) ESTIMATED LOAN LEVELS 2013 loan level*...................................... $4,821,748,000 2014 budget estimate.................................. 5,555,344,000 Provided in the bill.................................. 5,381,267,000 Comparison: 2013 loan level................................... +559,519,000 2014 budget estimate.............................. -174,077,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Agricultural Credit Insurance Fund program account, the Committee provides a loan level of $5,381,267,000. The following table reflects the loan levels for the Agricultural Credit Insurance Fund program account: AGRICULTURE CREDIT PROGRAMS--LOAN LEVELS [Dollars in Thousands] ------------------------------------------------------------------------ FY 2013 FY 2014 Committee level estimate provisions ------------------------------------------------------------------------ Farm loan programs Farm ownership: Direct................ $475,000 $575,000 $575,000 Unsubsidized 1,500,000 2,000,000 2,000,000 Guaranteed........... Farm operating: Direct................ 1,050,090 1,223,686 1,131,752 Unsubsidized 1,500,000 1,500,000 1,426,311 guaranteed........... Emergency loans........... 34,658 34,658 26,204 Indian tribe land 2,000 2,000 2,000 acquisition loans........ Conservation loans: Unsubsidized 150,000 150,000 150,000 Guaranteed........... Indian highly fractionated 10,000 10,000 10,000 land..................... Boll weevil eradication... 100,000 60,000 60,000 ----------------------------------------- Total................. 4,821,748 5,555,344 5,381,267 ------------------------------------------------------------------------ ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS ---------------------------------------------------------------------------------------------------------------- Guaranteed Direct loan loan Administrative subsidy subsidy expenses ---------------------------------------------------------------------------------------------------------------- 2013 appropriation*............................................. $78,107,000 $17,401,000 $305,034,000 2014 budget estimate............................................ 73,252,000 18,300,000 314,918,000 Provided in the bill............................................ 67,800,000 17,401,000 305,034,000 Comparison: 2013 appropriation -10,307,000 - - - - - - 2014 budget estimate -5,452,000 -899,000 -9,884,000 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. The following table reflects the costs of loan programs under credit reform: AGRICULTURE CREDIT PROGRAMS--SUBSIDIES AND GRANTS [Dollars in Thousands] ------------------------------------------------------------------------ FY 2013* FY 2014 Committee enacted estimate provisions ------------------------------------------------------------------------ Farm loan subsidies: Farm ownership: Direct................ $19,634 $4,428 $4,428 Farm operating: Direct................ 57,020 67,058 62,020 Unsubsidized 17,401 18,300 17,401 Guaranteed........... Emergency loans........... 1,284 1,698 1,284 Indian highly fractionated 169 68 68 land..................... ----------------------------------------- Total, Farm loan 95,508 91,552 85,201 subsidies............ Individual development - - - - - - - - - accounts............. ----------------------------------------- Total................. 95,508 91,552 85,201 ACIF expenses: Salaries and expenses..... 297,313 306,998 297,313 Administrative expenses... 7,721 7,920 7,721 ----------------------------------------- Total, ACIF expenses.. 305,034 314,918 305,034 ------------------------------------------------------------------------ *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. Risk Management Agency 2013 appropriation*................................... $73,018,000 2014 budget estimate.................................. 71,496,000 Provided in the bill.................................. 71,496,000 Comparison: 2013 appropriation................................ -1,522,000 2014 budget estimate.............................. - - - *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Risk Management Agency, the Committee provides an appropriation of $71,496,000. Enhancements to Existing Crop Insurance Programs.--The Committee believes that crop insurance has been an invaluable resource for agricultural producers in times of disaster. At the same time, it has protected taxpayers from costly and unbudgeted disaster assistance bills. The Committee supports the ongoing efforts of the House and Senate Committees on Agriculture to reauthorize provisions of the Farm Bill that maintain and strengthen the existing crop insurance program. Organic Foods.--The Committee is aware of the legislative mandate in the Food, Conservation, and Energy Act of 2008 that an organic price election be offered on all organic crops by 2012 (7 U.S.C. 1522(c)(10)(C)(iii)). The Committee appreciates the recent announcement by the Department regarding a new organic price election for the 2014 insurance year. The Committee is concerned, however, at the pace of progress and requests a report from the Department within 60 days of enactment detailing its strategic plan and timetable to implement organic price elections for all organic crops produced in compliance with the National Organic Program regulations under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.). Timely Communication of Changes in Coverage.--Crop insurance represents a key risk management tool for agricultural producers around the country and any changes to their insurance policies can have an immediate impact on critical financial and business decisions. The Committee understands that RMA will implement changes in an effort to reduce the loss ratios in the crop insurance industry, but it is concerned by the timeliness and the manner in which RMA notifies purchasers of changes to crop insurance coverage. The Committee is aware of issues pertaining to the late notification of changes communicated to producers and insurance providers over the past year that may have resulted in negative consequences for both. The Committee expects that RMA will address this issue and ensure effective and efficient administration of the crop insurance program. CORPORATIONS Federal Crop Insurance Corporation Fund 2013 appropriation.................................... \1\$9,517,433,00 0 2014 budget estimate.................................. \1\9,502,944,000 Provided in the bill.................................. \1\9,502,944,000 Comparison: 2013 appropriation................................ -14,489,000 2014 budget estimate.............................. - - - \1\Current indefinite appropriation. COMMITTEE PROVISIONS For the Federal Crop Insurance Corporation Fund, the Committee provides an appropriation of such sums as may be necessary (estimated to be $9,502,944,000 in the President's fiscal year 2014 budget request). Commodity Credit Corporation Fund REIMBURSEMENT FOR NET REALIZED LOSSES (INCLUDING TRANSFERS OF FUNDS)\1\ 2013 appropriation.................................... $11,018,509,000 2014 budget estimate.................................. 12,539,000,000 Provided in the bill.................................. 12,539,000,000 Comparison: 2013 appropriation................................ +1,520,491,000 2014 budget estimate.............................. - - - \1\Current indefinite appropriation. COMMITTEE PROVISIONS For Reimbursement for Net Realized Losses to the Commodity Credit Corporation, the Committee provides such sums as may be necessary to reimburse for net realized losses sustained but not previously reimbursed (estimated to be $12,539,000,000 in the President's fiscal year 2014 budget request). HAZARDOUS WASTE MANAGEMENT (LIMITATION ON EXPENSES) 2013 limitation....................................... ($5,000,000) 2014 budget estimate.................................. (5,000,000) Provided in the bill.................................. (5,000,000) Comparison: 2013 limitation................................... - - - 2014 budget estimate.............................. - - - COMMITTEE PROVISIONS For CCC Hazardous Waste Management, the Committee provides a limitation of $5,000,000. TITLE II CONSERVATION PROGRAMS Office of the Under Secretary for Natural Resources and Environment 2013 appropriation*................................... $871,000 2014 budget estimate.................................. 898,000 Provided in the bill.................................. 871,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -27,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Under Secretary for Natural Resources and Environment, the Committee provides an appropriation of $871,000. Natural Resources Conservation Service CONSERVATION OPERATIONS 2013 appropriation*................................... $810,115,000 2014 budget estimate.................................. 807,937,000 Provided in the bill.................................. 810,115,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. +2,178,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Conservation Operations, the Committee provides an appropriation of $810,115,000. The Committee provides $9,066,000 for the Snow Survey and Water Forecasting Program; $9,164,000 for the Plant Materials Centers; and $77,990,000 for the Soil Surveys Program. The Committee provides $713,895,000 for conservation technical assistance and directs NRCS to maintain level funding for the Conservation Effects Assessment Project (CEAP) and the Conservation Delivery Streamlining Initiative (CDSI). The Committee is pleased with the results of CEAP and the agency's efforts to modernize the delivery of conservation programs and services through CDSI and encourages the continuation of these efforts. Cheat Grass Eradication.--The Committee encourages NRCS to continue to assist farmers and ranchers to eradicate, control, and reduce the fuel loads associated with cheat grass and to work with the ARS on its research related to cheat grass. Herbicide Resistance.--The Committee directs NRCS to ensure agency staff, partners, and producers are aware of new and interim conservation practice standards and conservation activity plans to address herbicide-resistant weeds, and that financial assistance through certain conservation programs is available to assist producers in their efforts to control these weeds. The Committee also directs NRCS to report to it on this effort by December 1, 2013. Farmland Protection Program.--The Committee is aware of concerns regarding oil and gas exploration and extraction on current and potential Farmland Protection Program easements and requests NRCS provide a report on its regulations and practices regarding the program and these issues by September 30, 2013. Fleet Management.--The Committee is aware NRCS recently completed a fleet management pilot program for the purpose of reducing costs and better utilizing its vehicle fleet to meet the agency's goals and mandates. The Committee encourages NRCS and USDA to use this data and other available fleet management tools to reduce the number of non-essential vehicles purchased and/or leased. National Marine Sanctuaries.--The Committee urges the agency to continue the collaborative agreement with the Office of National Marine Sanctuaries to address agricultural sources of runoff, such as sediments, nitrates, and pesticides. Sage Grouse Initiative.--The Committee supports NRCS's sage grouse conservation efforts. Through the initiative, NRCS provides technical and financial assistance to help landowners conserve sage grouse habitat on their land. The initiative is an integral part of efforts by Federal agencies, several western States, and private landowners to help preclude the listing of the sage grouse as an endangered species. WATERSHED REHABILITATION PROGRAM 2013 appropriation*................................... $14,331,000 2014 budget estimate.................................. - - - Provided in the bill.................................. 12,000,000 Comparison: 2013 appropriation................................ -2,331,000 2014 budget estimate.............................. +12,000,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Watershed Rehabilitation Program, the Committee provides an appropriation of $12,000,000. TITLE III RURAL DEVELOPMENT PROGRAMS Office of the Under Secretary for Rural Development 2013 appropriation*................................... $871,000 2014 budget estimate.................................. 898,000 Provided in the bill.................................. 871,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -27,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Under Secretary for Rural Development, the Committee provides an appropriation of $871,000. Program Consolidation.--The Committee does not concur with the budget proposal to consolidate Rural Development's business and economic development programs into the Rural Business and Cooperative Grants Program. Program Efficiency.--The Committee appreciates the proposal included in the budget request for the Rural Housing Service to improve its eligibility verification processes through the use of data-sharing with the Department of Health and Human Services and pledges to work with the authorizing Committee to enact the proposal. Regional Innovation Initiative.--The fiscal year 2014 budget request proposes a Regional Innovation Initiative similar to the proposal included in the fiscal year 2013 request. The Committee is unable to provide any funding or authorization for the initiative as requests for additional information on the specific need, purpose, and plans for the initiative continue to go unanswered. Reporting Requirements.--The Committee reminds Rural Development that any action that relocates an office or employees and reorganizes offices, programs, or activities must be reported to the Committees on Appropriations of the House and Senate as required by law. Strike Force Initiative.--The Committee supports Rural Development's continued efforts to address the issue of persistent poverty in rural communities through the Strike Force Initiative and requests a report to be provided to the House and Senate Committees on Appropriations on the results of the initiative, including a comparison of its effectiveness to other Rural Development programs, within 60 days of enactment of this Act. Rural Development Salaries and Expenses (INCLUDING TRANSFERS OF FUNDS) ---------------------------------------------------------------------------------------------------------------- Committee FY 2013* level FY 2014 estimate provisions ---------------------------------------------------------------------------------------------------------------- Appropriations......................................... $201,659,000 $204,695,000 $201,659,000 Transfer from: Rural Housing Insurance Fund Program Account....... 400,308,000 417,692,000 400,308,000 Rural Development Loan Fund Program Account........ 4,326,000 4,467,000 4,326,000 Rural Electrification and Telecommunications Loan 33,601,000 34,694,000 33,601,000 Program Account................................... -------------------------------------------------------- Total, RD Salaries and Expenses................ 639,894,000 661,548,000 639,894,000 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Salaries and Expenses of the Rural Development mission area, the Committee provides an appropriation of $201,659,000. Rural Housing Service RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT (INCLUDING TRANSFERS OF FUNDS) ---------------------------------------------------------------------------------------------------------------- Administrative expenses Loan level Subsidy level ---------------------------------------------------------------------------------------------------------------- 2013 appropriation*.................. $25,147,198,000 $74,295,000 $400,308,000 2014 budget estimate................. 24,574,712,000 18,624,000 417,692,000 Provided in the bill................. 25,060,103,000 36,066,000 400,308,000 Comparison: 2013 appropriation -87,095,000 -38,229,000 - - - 2014 budget estimate +485,391,000 +17,442,000 -17,384,000 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Housing Insurance Fund program account, the Committee provides a loan level of $25,060,103,000. The following table reflects the loan levels for the Rural Housing Insurance Fund program account: [Dollars in Thousands] ------------------------------------------------------------------------ FY 2013 FY 2014 Committee level estimate provisions ------------------------------------------------------------------------ Rural Housing Insurance Fund Loans: Single family housing (sec 502): Direct................ $900,000 $360,000 $820,221 Unsubsidized 24,000,000 24,000,000 24,000,000 guaranteed........... Housing repair (sec 504).. 27,952 26,280 25,362 Rental housing (sec 515).. 31,277 28,432 28,432 Multi-family guaranteed 150,000 150,000 150,000 (sec 538)................ Credit sales of acquired 10,000 10,000 10,000 property................. Self-help housing land 5,000 - - - 5,000 development fund......... Farm labor housing........ 22,969 - - - 21,088 ----------------------------------------- Total, Loan 25,147,198 24,574,712 25,060,103 authorization........ ------------------------------------------------------------------------ The following table reflects the costs of loan programs under credit reform: ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS [Dollars in Thousands] ------------------------------------------------------------------------ FY 2013 FY 2014 Committee level estimate provision ------------------------------------------------------------------------ Rural Housing Insurance Fund Program Account (loan subsidies and grants): Single family housing (sec 502): Direct................ $52,380 $9,792 $22,310 Housing repair (sec 504).. 3,725 2,176 2,100 Rental housing (sec 515).. 10,724 6,656 6,656 Farm labor housing........ 7,466 - - - 5,000 Total, Loan subsidies..... 74,295 18,624 36,066 Farm labor housing grants. 8,645 13,992 8,168 RHIF expenses: Administrative 400,308 417,692 400,308 expenses............. ------------------------------------------------------------------------ RENTAL ASSISTANCE PROGRAM 2013 appropriation*................................... $884,332,000 2014 budget estimate.................................. 1,015,050,000 Provided in the bill.................................. 1,012,050,000 Comparison: 2013 appropriation................................ +127,718,000 2014 budget estimate.............................. -3,000,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rental Assistance Program, the Committee provides a program level of $1,012,050,000. MULTIFAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT 2013 appropriation*................................... $27,084,000 2014 budget estimate.................................. 32,575,000 Provided in the bill.................................. 27,084,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -5,491,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. For the Multifamily Housing Revitalization Program Account, the Committee provides an appropriation of $27,084,000, including $9,749,000 for the rural housing voucher program. MUTUAL AND SELF-HELP HOUSING GRANTS 2013 appropriation*................................... $29,246,000 2014 budget estimate.................................. 10,000,000 Provided in the bill.................................. 17,131,000 Comparison: 2013 appropriation................................ -12,115,000 2014 budget estimate.............................. +7,131,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Mutual and Self-Help Housing Grants, the Committee provides an appropriation of $17,131,000. RURAL HOUSING ASSISTANCE GRANTS 2013 appropriation*................................... $32,303,000 2014 budget estimate.................................. 25,000,000 Provided in the bill.................................. 18,585,000 Comparison: 2013 appropriation................................ -13,718,000 2014 budget estimate.............................. -6,415,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Housing Assistance Grants program, the Committee provides an appropriation of $18,585,000. RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $31,495,000 2014 budget estimate.................................. 17,000,000 Provided in the bill.................................. 25,251,000 Comparison: 2013 appropriation................................ -6,244,000 2014 budget estimate.............................. +8,251,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Community Facilities Program Account, the Committee provides an appropriation of $25,251,000. The following table provides the Committee's recommendations: (Dollars in Thousands) ---------------------------------------------------------------------------------------------------------------- Committee FY 2013* level FY 2014 estimate provisions ---------------------------------------------------------------------------------------------------------------- Loan levels: Community facility direct loans................. ($2,200,000) ($1,500,000) ($2,200,000) Community facility guaranteed loans............. (57,481) (- - -) (47,319) Subsidy and grants: Community facility direct loans................. - - - - - - - - - Community facility guaranteed loans............. 3,782 - - - 3,000 Community facility grants....................... 12,673 13,000 13,000 Rural Community Development Initiative.......... 5,967 - - - 5,967 Economic Impact Initiative...................... 5,789 - - - - - - Tribal college grants........................... 3,284 4,000 3,284 ----------------------------------------------------------- Total, Rural Community Facilities Program 31,495 17,000 25,251 subsidy and grants......................... ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. The following is included in bill language for the Rural Community Facilities Program: $5,967,000 is for the Rural Community Development Initiative. Rural Business-Cooperative Service RURAL BUSINESS PROGRAM ACCOUNT (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $83,745,000 2014 budget estimate.................................. 51,777,000 Provided in the bill.................................. 71,777,000 Comparison: 2013 appropriation................................ -11,968,000 2014 budget estimate.............................. +20,000,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Business Program Account, the Committee provides an appropriation of $71,777,000. The following table provides the Committee's recommendations as compared to the budget request: (Dollars in Thousands) ---------------------------------------------------------------------------------------------------------------- Committee FY 2013 level FY 2014 estimate provision ---------------------------------------------------------------------------------------------------------------- Loan level: Business and industry guaranteed loans.......... ($821,224) ($740,700) ($740,730) Subsidy and grants: Business and industry guaranteed loans.......... 54,920 51,777 51,777 Rural business enterprise grants................ 23,707 - - - 20,000 Rural business opportunity grants............... 2,193 - - - - - - Delta regional authority........................ 2,925 - - - - - - ----------------------------------------------------------- Total, Rural Business Program subsidy and 83,745 51,777 71,777 grants..................................... ---------------------------------------------------------------------------------------------------------------- The following programs are included in bill language for the Rural Business Program account: $500,000 for rural transportation technical assistance; and $3,900,000 for Federally Recognized Native American Tribes, of which $244,000 is for transportation technical assistance. RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT (INCLUDING TRANSFER OF FUNDS) ---------------------------------------------------------------------------------------------------------------- Administrative Loan level Subsidy level expenses ---------------------------------------------------------------------------------------------------------------- 2013 appropriation*................................. $18,414,000 $5,900,000 $4,326,000 2014 budget estimate................................ 18,889,000 4,082,000 4,467,000 Provided in the bill................................ 18,889,000 4,082,000 4,326,000 Comparison: 2013 appropriation.............................. 475,000 -1,818,000 - - - 2014 budget estimate............................ - - - - - - -141,000 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Development Loan Fund program account, the Committee provides for a loan level of $18,889,000. For the loan subsidy, the Committee provides an appropriation of $4,082,000. In addition, the Committee provides $4,326,000 for administrative expenses. RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT (INCLUDING RESCISSION OF FUNDS) Loan level 2013 appropriation...................................... $33,077,000 2014 budget estimate.................................... 33,077,000 Provided in the bill.................................... 33,077,000 Comparison: 2013 appropriation.................................. - - - 2014 budget estimate................................ - - - COMMITTEE PROVISIONS For the Rural Economic Development Loans Program Account, the Committee provides for a loan level of $33,077,000. RURAL COOPERATIVE DEVELOPMENT GRANTS 2013 appropriation*................................... $27,009,000 2014 budget estimate.................................. 17,250,000 Provided in the bill.................................. 17,250,000 Comparison: 2013 appropriation................................ -9,759,000 2014 budget estimate.............................. - - - *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For Rural Cooperative Development Grants, the Committee provides an appropriation of $17,250,000. The total includes $2,250,000 for a cooperative agreement for the Appropriate Technology Transfer for Rural Areas program and $15,000,000 for the value-added agricultural product market development grant program. RURAL ENERGY FOR AMERICA PROGRAM 2013 appropriation*................................... $3,315,000 2014 budget estimate.................................. 19,740,000 Provided in the bill.................................. 3,000,000 Comparison: 2013 appropriation................................ -315,000 2014 budget estimate.............................. -16,740,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Energy for America Program, the Committee provides a loan level of $14,161,000 and an appropriation of $3,000,000 for the loan subsidy to make loans as authorized by section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107). Rural Utilities Service RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $511,288,000 2014 budget estimate.................................. 304,000,000 Provided in the bill.................................. 447,997,000 Comparison: 2013 appropriation................................ -63,291,000 2014 budget estimate.............................. +143,997,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Water and Waste Disposal Program Account, the Committee provides an appropriation of $447,997,000. Guaranteed Loans.--The Committee expresses its support for water and waste disposal guaranteed loans and encourages RUS to utilize existing balances in the program during fiscal year 2014. Water Supplies for Very Small Communities.--The Committee is aware of concerns that RUS grant programs do not adequately help small, disadvantaged and severely disadvantaged communities access the funding and expertise necessary to develop sustainable water supplies or otherwise improve their water systems. The Committee requests the agency provide a report to the Committees on Appropriations of the House and Senate by March 1, 2014, on its programs, regulations, outreach efforts, and other assistance provided to disadvantaged and severely disadvantaged communities. The report should include information on these communities and indicators of their historical access to predevelopment planning grants by State and recommendations for changes, including ways to better target predevelopment grant funding to severely disadvantaged communities. The following table provides the Committee's recommendations: [Dollars in Thousands] ---------------------------------------------------------------------------------------------------------------- Committee FY 2013 level FY 2014 level provisions ---------------------------------------------------------------------------------------------------------------- Loan levels: Water and waste direct loans....................... ($1,000,000) ($1,200,000) ($1,200,000) Water and waste guaranteed loans................... (61,321) - - - - - - Direct Loans authorized by P.L. 83-566............. (40,000) - - - - - - Subsidy and Grants: Direct Subsidy..................................... 78,672 - - - - - - Guaranteed Subsidy................................. 634 - - - - - - Water and Waste Revolving Fund..................... 975 - - - 500 Water Well System Grants........................... 968 - - - 968 Grants for the Colonias and AK/HI.................. 64,829 - - - 64,829 Water and Waste Technical Assistance Grants........ 18,523 - - - 18,523 Circuit Rider Program.............................. 14,623 - - - 14,623 Solid Waste Management Grants...................... 3,315 4,000 3,315 High Energy Cost Grants............................ 9,749 - - - - - - Water and Waste Disposal Grants.................... 319,000 300,000 345,239 -------------------------------------------------------- Total Subsidies and Grants..................... $511,288 $304,000 $447,997 ---------------------------------------------------------------------------------------------------------------- RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT (INCLUDING TRANSFER OF FUNDS) ---------------------------------------------------------------------------------------------------------------- Administrative Loan level Subsidy level expenses ---------------------------------------------------------------------------------------------------------------- 2013 appropriation*................................. $7,790,000,000 - - - $33,601,000 2014 budget estimate................................ 4,690,000,000 - - - 34,694,000 Provided in the bill................................ 5,190,000,000 - - - 33,601,000 Comparison: 2013 appropriation -2,600,000,000 - - - - - - 2014 budget estimate +500,000,000 - - - -1,093,000 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Rural Electrification and Telecommunications Loans Program Account, the Committee provides a loan level of $5,190,000,000. In addition, the Committee provides $33,601,000 for administrative expenses. The Committee does not concur with the proposal to limit the use of rural electrification loans and instead expects USDA to work with borrowers to finance the most reliable and cost- effective electricity source that meets their needs. The following table reflects the loan levels for the Rural Electrification and Telecommunications Loans Program account: [Dollars in Thousands] ---------------------------------------------------------------------------------------------------------------- Committee FY 2013 enacted FY 2014 estimate provisions ---------------------------------------------------------------------------------------------------------------- Loan authorizations: Electric: Direct, 5%...................................... $100,000 - - - - - - Direct, FFB..................................... 6,500,000 $4,000,000 $4,000,000 Guaranteed underwriting......................... 500,000 - - - 500,000 Subtotal........................................ 7,100,000 4,000,000 4,500,000 Telecommunications: Direct, Treasury rate........................... 690,000 690,000 690,000 Subtotal........................................ 690,000 690,000 690,000 ----------------------------------------------------------- Total, Loan authorizations.................. 7,790,000 4,690,000 5,190,000 ---------------------------------------------------------------------------------------------------------------- DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM ---------------------------------------------------------------------------------------------------------------- Committee FY 2013* enacted FY 2014 estimate provisions ---------------------------------------------------------------------------------------------------------------- Broadband Program: Loan authorization.............................. $42,239,000 $63,356,000 $42,146,000 Loan subsidy.................................... 3,899,000 8,268,000 5,500,000 Grants.......................................... 10,111,000 10,372,000 10,111,000 Distance learning and telemedicine: Grants.......................................... 24,323,000 24,950,000 24,323,00 ----------------------------------------------------------- Total, Loan subsidy and grants.............. 38,333,000 43,590,000 39,934,000 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Distance Learning, Telemedicine, and Broadband Program, the Committee provides an appropriation of $39,934,000, which includes $24,323,000 for distance learning and telemedicine grants. Broadband Loan Program Priorities.--Funding provided for the broadband program is intended to promote broadband availability in those areas where there is not otherwise a business case for private investment in a broadband network. The Committee directs RUS to focus expenditures on projects that bring broadband service to currently unserved households. TITLE IV DOMESTIC FOOD PROGRAMS Office of the Under Secretary for Food, Nutrition, and Consumer Services 2013 appropriation*................................... $791,000 2014 budget estimate.................................. 816,000 Provided in the bill.................................. 791,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -25,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Office of the Under Secretary for Food, Nutrition, and Consumer Services, the Committee provides an appropriation of $791,000. The Committee directs FNS to continue making all policy documents related to the WIC program (including, but not limited to, instructions, memoranda, guidance, and questions and answers) available to the public on the Internet within one week of their release to state WIC administrators. The Committee is concerned about duplicative and overlapping food assistance programs, with the Government Accountability Office (GAO) having cited 18 different domestic programs that show signs of overlap and inefficient use of resources. The Committee urges FNS to review eligibility requirements and eliminate duplication to ensure families are receiving adequate but not overlapping assistance. The Committee expects USDA to issue guidelines to the appropriate state agencies on a requirement to include the USDA Inspector General (IG) Fraud Hotline and the IG website address on all SNAP and WIC Electronic Benefit Transfer cards and WIC coupons/vouchers or on any other information that accompanies the WIC instruments for the purpose of reporting potential fraud, waste, and abuse by vendors and/or participants. The Committee directs USDA to issue these guidelines no later than July 1, 2013. As part of USDA's effort to reduce fraud, ensure the integrity of its nutrition programs, and safeguard the identities of participants in nutrition assistance programs, the Committee directs the Secretary to provide a report detailing the prevalence of identity theft incidents perpetrated against USDA nutrition program beneficiaries; steps USDA is taking to protect program beneficiaries' personally identifiable information against unauthorized disclosure; and what, if any, actions are being taken to educate participants on the threat of identity theft. Food and Nutrition Service CHILD NUTRITION PROGRAMS (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation.................................... $19,891,185,000 2014 budget estimate.................................. 20,487,229,000 Provided in the bill.................................. 20,452,229,000 Comparison: 2013 appropriation................................ +561,044,000 2014 budget estimate.............................. -35,000,000 COMMITTEE PROVISIONS For the Child Nutrition Programs, the Committee provides $20,452,229,000. The fiscal year 2013 conference report provided $9.7 million for school meals equipment grants, and the fiscal year 2014 budget requests $35 million for this program. The Committee is aware of the importance of these funds, especially in rural areas, and will continue to monitor the need for this program. School Meals.--The Committee is concerned about the challenges and costs that local schools face in implementing the school meals final rule. While schools are still working to implement these nutrition standards for lunch, they also must begin implementing these standards for breakfast in the 2013-14 school year. In addition, USDA recently proposed more regulations on schools. Before USDA can begin implementing the requirements for the School Breakfast Program and the proposed rule on nutrition standards for all foods sold in school, USDA is directed to receive notification from each local school participating in the program that it can implement the final rule on nutrition standards in a workable and cost-neutral manner. While the Committee appreciates the flexibility USDA has provided to schools regarding the grain and protein requirements for school year 2013-2014, schools will still need certainty into the future. USDA is encouraged to extend this flexibility and provide schools with a long-term policy by September 1, 2013, to assist them with planning and procurement for future school years. As schools seek to implement the new school meal standards, the Committee encourages USDA to consider ways to assist schools with technical assistance and training to provide healthful, cost-effective foods that students will eat. Improper Payments.--The Committee continues to be concerned about the staggering improper payment rates in the National School Lunch Program (NSLP) and School Breakfast Program (SBP). For fiscal year 2012, the NSLP had an error rate of 15.53 percent, which is $1.6 billion in improper payments. The SBP had an error rate of 25.18 percent, or an estimated $825 million. These programs have some of the highest error and improper payment rates of all Federal programs. The Committee provides funding to support USDA's efforts to reduce erroneous payments and expects USDA to utilize any additional funds necessary from the State Administrative Expenses account to assist States and Local Educational Agencies in reducing errors. Prioritization of Monitoring and Compliance Reviews.--The Committee directs the Secretary to allow States to vary the frequency of monitoring and compliance reviews of each school food authority based on past school performance, with no cycle extending more than five years as granted in the Healthy, Hunger-Free Kids Act of 2010. Child and Adult Care Food Program.--The Committee directs USDA to verify that CACFP sites, which provide at-risk, after- school snacks and suppers, are in full compliance with the eligibility requirements for participating in the program. Summer Food Service Pilot Program.--Distressed counties in certain parts of the country face high levels of food insecurity. The Committee supports the efforts that authorize the Secretary to conduct demonstrations to test new models of preventing food insecurity and hunger among children during the summer months. The Committee directs the Secretary to provide a report no later than 60 days after enactment on the estimated implementation costs and benefits of the models that have been tested and provide recommendations for cost effective ways to promote food security in counties as defined in 40 U.S.C. 14102. The following table reflects the Committee recommendations for the child nutrition programs: (Dollars in thousands) Child Nutrition Programs: School lunch program.................................... $11,647,505 School breakfast program................................ 3,842,895 Child and adult care food program....................... 3,052,176 Summer food service program............................. 467,932 Special milk program.................................... 10,778 State administrative expenses........................... 247,544 Commodity procurement................................... 1,103,244 Food safety education................................... 2,649 Coordinated review...................................... 10,000 Computer support and processing......................... 11,002 CACFP training and technical assistance................. 8,016 CN Studies.............................................. 19,697 CN Payment Accuracy..................................... 9,617 Farm to School Team..................................... 2,170 Team Nutrition.......................................... 15,004 Healthier US School Challenge........................... 2,000 -------------------------------------------------------- ____________________________________________________ Total............................................... 20,452,229 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 2013 appropriation*................................... $6,868,934,000 2014 budget estimate.................................. 7,141,625,000 Provided in the bill.................................. 6,654,871,000 Comparison: 2013 appropriation................................ -214,063,000 2014 budget estimate.............................. -486,754,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Committee provides an appropriation of $6,654,871,000. The President's budget request includes a projection of an average monthly participation rate of 8.9 million women, infants, and children in fiscal year 2014. It is worth noting that previous projections for the average monthly WIC participation rates have been inflated. For example, the President's budget request in fiscal year 2012 projected an average monthly participation rate of 9.6 million people, when in fact the average participation rate was 8.9 million. In fiscal year 2013, the request projected participation rates of 9.1 million, and to date, participation has been well below this estimate, averaging 8.7 million participants per month. Birth rates are an important factor in estimating WIC participation, and the number of births has steadily declined since 2007, according to the Centers for Disease Control and Prevention. Food costs also have been lower than expected. The Committee supports USDA's efforts to promote cost containment and expects some measures being implemented by States to result in lower food costs over the long term. The Committee also notes USDA has full authority to utilize carry over funds from the previous fiscal year and encourages USDA to work with States on a regular and timely basis to determine the availability of recovery funds as early as possible. Furthermore, the Secretary has $125 million in the WIC contingency reserve fund as a safety net to meet unexpected demand. The Committee provides for continuation of the breastfeeding peer counselor program, infrastructure, and investments in management information systems within the total amount provided in the bill, pending a determination by the Secretary that funds are available to meet caseload demand. The Committee will continue to monitor WIC food costs, participation, and carryover funds and take additional action as necessary to ensure that funding provided in fiscal year 2014 is sufficient to serve all eligible applicants. Income Eligibility Standards.--The Committee remains concerned that USDA's regulations regarding income eligibility determinations and corresponding allowable practices, including the definitions of income and household, use of programs acceptable for adjunctive or automatic eligibility, and income verification procedures, have created wide disparity among the States, Territories, and Tribal Organizations. Concerns such as these were identified in the February 2013 GAO report, ``WIC Program: Improved Oversight of Income Eligibility Determination Needed.'' In partial response to the report, USDA issued income eligibility guidance to all state agencies on April 26, 2013. The Committee directs USDA to provide a report within 90 days of enactment detailing the training, technical assistance, and compliance monitoring activities that USDA will undertake in connection with the release of these guidelines. Cost Management within WIC State Agencies.--The Committee supports USDA's efforts to rein in the cost of WIC food items while ensuring the nutritional value and food choices for participants. As state agencies consider options for cost containment, the Committee directs FNS to closely monitor this process to ensure there are no unintended consequences for participants, vendors, or product manufacturers. The Committee is aware that USDA is conducting management evaluations of all state agencies since more States have had problems with vendor management and food cost containment. As demonstrated in USDA's oversight of States with violations, USDA has the ability to require state agencies to reduce the maximum dollar amount the state agency reimburses for WIC food items. The Committee directs the Department to provide quarterly updates to the Committee on the management evaluation process, including concerns that have arisen and steps USDA has taken to correct any violations. In addition, the Committee is aware that USDA issued moratoriums that prohibit the authorization of new WIC vendors in some States. While the Department should be applauded for efforts to control costs and address fraud, waste and abuse, both WIC participants and the vendors who serve participants may be negatively impacted by an indefinite moratorium. The Committee directs USDA to submit a report within 60 days of enactment on the actions States need to take to address Agency concerns, along with a timeline, for lifting these moratoriums. Vendors Offering Incentive Items to WIC Participants.--The practice of some vendors offering incentive items for purchases of WIC-authorized food items may increase the cost of WIC foods. Incentives may draw WIC participants who would otherwise shop at less expensive WIC-authorized stores. In addition, the price of WIC food items may be increased to cover the cost of incentives. The Committee encourages the Secretary to use existing authority to limit incentives on WIC transactions to help ensure that incentives do not increase WIC food costs and encourages the Secretary to provide recommendations for legislative changes that could help ensure that incentives do not increase WIC food costs. Childhood Screening.--The Committee recognizes the important connection between childhood lead poisoning and nutrition status. The Committee encourages WIC to partner with stakeholders in an effort to establish point-of-care blood lead screening activities for children who utilize WIC services in underserved communities where childhood lead poisoning rates are high. Eligible Foods.--The Committee encourages the Secretary to amend 7 CFR 246.10 in order for state agencies to include all varieties of fresh, whole or cut vegetables, except for vegetables with added sugars, fats, oils; provided that inclusion of such vegetables contribute towards meeting the special nutritional needs of program participants and increases the availability of low-cost, high-nutrient alternatives for participants throughout the year. SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM 2013 appropriation.................................... $77,290,160,000 2014 budget estimate.................................. 78,389,610,000 Provided in the bill.................................. 76,332,112,000 Comparison: 2013 appropriation................................ -958,048,000 2014 budget estimate.............................. -2,057,498,000 COMMITTEE PROVISIONS For the Supplemental Nutrition Assistance Program (SNAP), the Committee provides $76,332,112,000. The total amount includes $3,000,000,000 for a contingency reserve to be used only in the amount necessary. Fraud, Waste, and Abuse.--The Committee is aware of recent USDA efforts to strengthen the integrity of SNAP by establishing Federal-State data-sharing agreements to reduce fraud. However, the Committee recognizes more can be done to target fraud and has previously directed and expects USDA to permanently debar retailers and participants from the program if found guilty of fraud and abuse. To further assist in this effort, the Committee directs USDA to consider all options, including requiring that retailers participating in SNAP maintain a unique business identification, in order to identify any relationship between a disqualified SNAP retailer and all eligible SNAP participants to effectively screen applicants for criminal activity, fraud, Federal debarment, and questionable business practices. Employment and Training.--The Committee directs the Secretary to provide a report within 90 days of enactment on how the SNAP Employment and Training (E&T) program is currently being used to help SNAP participants gain skills and training to find productive employment that will allow them to transition from SNAP to self-sufficiency, including measurable results of the program. The Committee also encourages the Secretary to provide a five-year plan for how the E&T program, as well as any other resources and programs, will be used to help participants find employment. Recruitment Activities.--The Committee is concerned about the use of valuable tax dollars to promote enrollment of SNAP through radio, television, and other means of advertisements. The Committee is also concerned by outreach activities with foreign governments to encourage use of SNAP. The Committee strongly encourages USDA to cease these types of government- sponsored recruitment activities. Prepared Foods/Beverages Purchased with SNAP Benefits.--The Committee is concerned that SNAP vendors are allowed to sell prepared food or drink with SNAP benefits beyond those allowances for the homeless, elderly, or disabled. The Committee directs USDA to tighten restrictions on SNAP eligibility for hot prepared foods and extend restrictions to other foods intended for immediate on-premise consumption such as hot prepared beverages and fountain drinks. Commonwealth of the Northern Mariana Islands.--The Committee is aware of the interest in transitioning the Commonwealth of the Northern Mariana Islands into SNAP. The Committee directs the Secretary to provide a report on the feasibility of establishing SNAP in the Northern Mariana Islands, including the capabilities of the Commonwealth to fulfill the responsibilities of a state agency by ensuring participation of only eligible households, maintaining program integrity, paying a share of administrative costs with non- federal funds, and other such requirements as deemed necessary by the Secretary to operate SNAP. The Emergency Food Assistance Program.--The Committee urges USDA to assess the availability of and consider policies and procedures that would make it easier for food banks and pantries to serve populations that may have dietary restrictions due to religious dietary laws. The following table reflects the Committee recommendations for the Supplemental Nutrition Assistance Program: [Dollars in Thousands] Supplemental Nutrition Assistance Program Account: Benefits*............................................... $66,541,196 Contingency Reserve..................................... 3,000,000 Administrative Costs: State Administrative Costs.............................. 3,999,024 Nutrition Education and Obesity Prevention Grant Program 350,000 Employment and Training................................. 437,405 Mandatory Other Program Costs........................... 161,744 Discretionary Other Program Costs....................... 998 Administrative Subtotal............................. 4,949,171 Nutrition Assistance for Puerto Rico (NAP)*............. 2,000,568 American Samoa*......................................... 8,034 Food Distribution Program on Indian Reservations........ 104,000 TEFAP Commodities....................................... 268,500 Commonwealth of the Northern Mariana Islands............ 12,148 Community Food Project.................................. 5,000 Program Access.......................................... 5,000 Subtotal............................................ 2,403,250 ARRA Benefits........................................... -561,505 Total............................................... 76,332,112 *Totals include ARRA benefits: $452,585,000 for core SNAP; $108,485,000 for Nutrition Assistance for Puerto Rico; and, $435,000 for American Samoa. --------------------------------------------------------------------------- COMMODITY ASSISTANCE PROGRAM 2013 appropriation*................................... $247,570,000 2014 budget estimate.................................. 271,701,000 Provided in the bill.................................. 265,892,000 Comparison: 2013 appropriation................................ +18,322,000 2014 budget estimate.............................. -5,809,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB COMMITTEE PROVISIONS The Committee provides an appropriation of $265,892,000 for the Commodity Assistance Program. The recommended funding level for the Commodity Supplemental Food Program is $202,682,000, the same as the President's budget request. The Committee recommendation includes $16,548,000 for the Farmers' Market Nutrition Program. The Committee has included $45,592,000 for administrative funding for the Emergency Food Assistance Program (TEFAP). For the Food Donations Programs, the Committee provides an appropriation of $1,070,000 for Pacific Island Assistance. TEFAP Handling and Distribution Costs.--In addition to the grant funds to support commodity handling and distribution costs, the bill permits States to use up to 10 percent of the funds provided for purchasing TEFAP commodities to help with the costs of storing, transporting, and distributing commodities. The Committee expects state agencies to consult with their emergency feeding organizations on the need for the conversion of such funds. NUTRITION PROGRAMS ADMINISTRATION 2013 appropriation*................................... $139,899,000 2014 budget estimate.................................. 146,592,000 Provided in the bill.................................. 139,899,000 Comparison: 2013 appropriation................................ - - - 2014 budget estimate.............................. -6,693,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB COMMITTEE PROVISIONS For Nutrition Programs Administration, the Committee provides $139,899,000. The Committee does not provide funding for the Center for Nutrition Policy and Promotion to develop federal dietary guidance for infants and children from birth to 24 months of age or to promote the Dietary Guidelines for Americans or MyPlate. The nutrition education services provided through WIC, along with other Federal nutrition education programs, are available to assist with the dietary and nutritional needs of infants and children. The Committee also notes that USDA does significant advertising of the Dietary Guidelines, MyPlate, and other resources to promote healthier lifestyles. These efforts are combined with the ``Let's Move!'' campaign and use of this information by the public and private sectors. TITLE V FOREIGN ASSISTANCE AND RELATED PROGRAMS Foreign Agricultural Service SALARIES AND EXPENSES (INCLUDING TRANSFERS OF FUNDS) ---------------------------------------------------------------------------------------------------------------- Transfer from Appropriation export loan Total ---------------------------------------------------------------------------------------------------------------- 2013 appropriation*.................................... $172,346,000 $6,290,000 $178,636,000 2014 budget estimate................................... 178,826,000 6,394,000 185,220,000 Provided in the bill................................... 172,866,000 6,290,000 179,156,000 Comparison: 2013 appropriation +520,000 --- +520,000 2014 budget estimate -5,960,000 -104,000 -6,064,000 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Foreign Agricultural Service, the Committee provides an appropriation of $172,866,000 and transfers of $6,290,000. The Committee directs the Secretary, through the Office of Budget and Program Analysis, in consultation with the Administrator of the U.S. Agency for International Development, to submit quarterly reports to the Committee on the status of the Bill Emerson Humanitarian Trust, as well as to immediately notify the Committee when the Trust has been drawn down. Food for Progress.--The Committee supports the work of the Food for Progress program, which increases rural incomes and enhances food security by improving agricultural productivity, supporting agribusiness development, and expanding the availability of financial services. The Committee encourages USDA to consider the work of non-governmental organizations that are involved in small-scale agricultural biomass projects when issuing awards in the program. These types of projects may offer numerous benefits, from the production of biomass crops to the processing and marketing of crop and animal products. Performance Goals and Outcome Based Measures.--In April 2013, USDA's Office of Inspector General released a report on FAS performance and said that FAS' performance measures were not outcome-based and do not show how the United States is performing in certain markets compared to its competitors. The Agency's overall agricultural trade strategy, Country Strategy Statements, and USDA's Global Market Strategy need to incorporate measurable goals and outcome-based measures so that USDA can gauge the effectiveness of the investment of appropriated resources. The Committee directs FAS to report no later than December 1, 2013, to the Committees on Appropriations of the House and Senate on how the Agency is developing outcome-based measures that demonstrate results, and, if applicable, how FAS is changing the allocation of resources to promote increased foreign consumption of U.S. agricultural goods. Food for Peace Title I Direct Credit and Food for Progress Program Account (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $2,735,000 2014 budget estimate.................................. 2,628,000 Provided in the bill.................................. 2,735,000 Comparison: 2013 appropriation................................ --- 2014 budget estimate.............................. +107,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the administrative expenses to carry out the credit program of Food for Peace Title I, Food for Peace Act, and the Food for Progress Act, the Committee provides an appropriation of $2,735,000. Food for Peace Title II Grants 2013 appropriation*................................... $1,433,565,000 2014 budget estimate.................................. --- Provided in the bill.................................. 1,149,680,000 Comparison: 2013 appropriation................................ -283,885,000 2014 budget estimate.............................. +1,149,680,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. For Food for Peace Title II grants, the Committee provides $1,149,680,000. Food Aid Reform.--The Committee is concerned about the effect of the Administration's proposed reforms on food aid programs. The Committee directs USDA to work with USAID to facilitate an independent third party study and submit a report to the Committees on Appropriations within 60 days of enactment on (1) how the Administration would find the greatest possible efficiencies in programs under existing law and regulation while seeking to feed more people without increased levels of funding; and, (2) alternatively, explain in detail how the Administration's proposed reform to PL 480, Title II would be implemented within the existing statutory and regulatory framework. The study should address: efforts to combat the causes of hunger and malnutrition in target populations; efforts to address specific nutritional needs of the recipient community; resiliency efforts to reduce the need for emergency and developmental food assistance; assurance that reforms do not shift funding away from other existing USDA and/or USAID programs; actions that would need to be taken to address the recommendations in GAO report 11-636; and, ways agencies can better coordinate efforts to maximize results. ADMINISTRATIVE EXPENSES (INCLUDING TRANSFERS OF FUNDS) 2013 appropriation*................................... $6,635,000 2014 budget estimate.................................. 6,748,000 Provided in the bill.................................. 6,635,000 Comparison: 2013 appropriation................................ --- 2014 budget estimate.............................. -113,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For administrative expenses of the Commodity Credit Corporation Export Loans Program Account, the Committee provides an appropriation of $6,635,000. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION PROGRAM GRANTS 2013 appropriation*................................... $183,816,000 2014 budget estimate.................................. 185,126,000 Provided in the bill.................................. 180,320,000 Comparison: 2013 appropriation................................ -3,496,000 2014 budget estimate.............................. -4,806,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For McGovern-Dole International Food for Education and Child Nutrition Program Grants, as authorized by Section 3107 of P.L. 107-171 (7 U.S.C. 1736o-1), the Committee provides an appropriation of $180,320,000. TITLE VI RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration (SALARIES AND EXPENSES) (Dollars in Thousands) ---------------------------------------------------------------------------------------------------------------- Appropriation User fees Total, FDA S&E ---------------------------------------------------------------------------------------------------------------- 2013 appropriation*................................. $2,461,051 $1,698,804 $4,159,855 2014 budget estimate................................ 2,548,905 1,794,765 4,343,670 Provided in the bill................................ 2,485,399 1,794,765 4,280,164 Comparison: 2013 appropriation +24,348 +95,961 +120,309 2014 budget estimate -63,506 --- -63,506 ---------------------------------------------------------------------------------------------------------------- *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. The Committee provides an appropriation of $2,485,399,000 in new budget authority for the Food and Drug Administration (FDA). In addition, the Committee recommends the following user fee amounts: $760,000,000--prescription drugs; $114,833,000-- medical devices; $23,600,000--animal drugs; $7,328,000--animal generic drugs; $534,000,000--tobacco products; $12,925,000-- food and feed recalls; $15,367,000--food reinspection; $305,996,000--human generic drugs; and, $20,716,000-- biosimilars. The combination of new budget authority and user fees provides FDA with a total discretionary salaries and expenses level of $4,280,164,000. This total does not include permanent, indefinite user fees for mammography, export, and color certification of $31,765,000. The Committee recommendation includes $63,896,000 for White Oak Consolidation and $9,748,700 for inspections in China. The Committee includes an additional $26,747,000 for food safety activities and an additional $2,524,000 for medical product safety activities. The Committee assumes that the pending animal drug and animal generic drug user fee reauthorizations will occur. The Committee recommendation does not include proposed user fees for food facility registration, food import, medical products reinspection, international courier, cosmetics, or food contact notification. The Committee includes an increase of $1,004,000 above the fiscal year 2013 funding level and not less than $10,312,000 of FDA headquarters funding for medical countermeasures initiative. The Committee does not include requested funding for a civilian pay increase across the agency. Should the President provide a civilian pay increase for 2014, it is assumed that the cost of such a pay increase will be absorbed within existing appropriations for fiscal year 2014. The Committee does include, however, $1,125,000 for the Commissioned Corps pay increase. The Committee notes that funding for the National Antimicrobial Response Monitoring System is estimated at $7,800,000 in fiscal years 2013 and 2014 and urges FDA to consider providing additional funding for this program if warranted. The Committee directs FDA to maintain the fiscal year 2012 funding level for the Food Contact Notification program. Spending Plans.--Within 30 days of enactment, the Commissioner shall notify the Committees on Appropriations of both Houses of Congress on the allocation of the funds provided herein, by account, and within each account by program, project, and activity. FDA User Fee Collections/Obligations.--The Committee is concerned about the large unobligated balances that continue to occur in FDA's user fee programs. While Congress did allow for some exemptions from fiscal year limitations and for some amounts to be carried forward into subsequent fiscal years, it could not have been anticipated that FDA would be carrying in excess of $1,000,000,000 in unobligated user fees halfway into any fiscal year. In the Tobacco user fee program alone, the fiscal year 2012 unobligated balance that carried over into fiscal year 2013 was $600,000,000. While FDA estimates this figure will drop to $250,000,000 by the end of fiscal year 2013, the Committee remains skeptical that this will occur. The Committee directs that not later than November 1, 2013, and each month thereafter through the months covered by this Appropriations Act, the Commissioner to submit to the Committees on Appropriations of the House and the Senate a report on user fees collected for each user fee program included in the bill. The report shall also include monthly obligations incurred against such fee collections. The first report shall include a distinct categorization of the user fee balances that are being carried forward into fiscal year 2014 for each user fee account as well as a detailed explanation of what accounts for the balance and what the balance will be used for. Transparency Concerns.--The Committee is concerned about the unpredictable nature and pace at which FDA moves guidance, rules, and regulations through the process. The Agency must understand that FDA is often viewed as a primary source of information for consumer decisions that impact their health and well-being. The Committee understands that many rules and regulations get through the agency and the department only to languish at the Office of Management and Budget (OMB). On the other hand, FDA has discretion to issue advisories and guidance without the need for OMB clearance. In a number of critical health areas, American consumers and industry are faced with no guidance at all or inconsistent messages on many important issues. The following is a list of examples: seafood advisory for pregnant women; sunscreen ingredients; new dietary ingredients for dietary supplements; and, Bisphenol A. The Committee directs FDA to report to the Committees on Appropriations by September 1, 2013, on how the agency plans to develop new methods of communicating with its stakeholders on future actions affecting critical policy issues, including estimated timeframes for when regulations, advisories, and guidance are planned for release and what decision points are necessary before these policy documents can be made. Neglected Tropical Diseases (NTD).--The Committee has become aware that Chagas disease is not on the list of neglected diseases as currently defined by FDA. The Committee urges FDA to make the necessary modifications to include Chagas disease in its list of neglected diseases in line with World Health Organization's list of NTDs. Additionally, the Committee directs that FDA build stronger partnerships with global regulatory stakeholders and strengthen its internal capacity to review products for neglected diseases. Guidance for Industry.--The Committee directs the Secretary of Health and Human Services to finalize Guidance for Industry (GFI) #213 prior to January 1, 2014. The Committee directs the Secretary of Health and Human Services to publish a report not later than one year following the date of finalization of GFI #213 that (1) lists the following, for each medically important antimicrobial new animal drug administered in feed or water to food-producing animals with one or more approved production claims (including any growth promotion, feed efficiency, or weight gain claims) and/or that are approved for over-the- counter (OTC) marketing, provided that such antimicrobial is in a class of drugs that FDA determines accounts for 10 percent or more of all physician prescriptions: (a) the drug's new animal drug application (NADA) number(s), (b) sponsor, (c) all antimicrobial active ingredients contained in the drug, and, (d) all production claims approved for the drug; and (2) specifies the number of sponsors of the new animal drugs listed that have notified the FDA of their intent to participate in the voluntary process described in GFI #213. The Committee further directs the Secretary, beginning not later than one year following the finalization of GFI #213, to publish annual reports that (1) specify the number of antimicrobial new animal drugs for which sponsors have submitted applications under GFI #213 to change existing approvals, broken out by type of change sought (i.e., removal of production claims; addition of treatment, control, and/or prevention claims; and removal of OTC marketing status); and (2) list the applications submitted under GFI #213 that have been approved by the agency by NADA number, and if not approved or rejected, indicate whether the inaction was a result of insufficient FDA resources, insufficient information from sponsors or some other reason. Nutrition Labeling.--The Committee remains concerned with FDA's proposed rule to regulate Nutrition Labeling of Standard Menu Items at Chain Restaurants. The Committee urges FDA to use the proposed alternative Option 2 definition of the rule which only applies to restaurants or retail establishments where the primary and majority of business is the selling of food for consumption or the selling of food that is processed or prepared on the premises. The Committee believes the agency should take into account the increased costs and logistical challenges chain restaurants will face in meeting the requirements of the proposed rule. To meet the requirements of the law, FDA should consider a clear, conspicuous statement of required nutritional information on a prominently displayed poster adjacent to the menu board and nutritional information to be provided in pamphlet form prominently displayed next to drive-through menu boards as meeting such requirements. Food safety monitoring.--The Committee notes that the National Agriculture and Food Defense Strategy Plan is being finalized as required by Section 108 of Public Law 111-353. As research needs are identified to carry out this section, the Committee encourages FDA to consider funding research that would provide portable and technologically advanced testing platforms needed to effectively monitor and protect against intentional adulteration of the food supply. Regulations.--The Committee appreciates FDA's acknowledgement that exclusive tobacco products may raise different questions of public health and may need to be treated differently. Further, the Committee notes that there are key differentiating and unique characteristics of premium cigars and that any effort to bring these products under the ``deeming'' rule should proceed with these factors being taken into consideration. Sunscreen.--Approximately two million cases of skin cancer are diagnosed each year and an estimated one in five Americans may develop skin cancer during their lifetime. Since sunscreen use can help prevent this disease, the Committee is concerned that FDA has taken no final action to approve new sunscreen ingredients under the Time and Extent Applications (TEA) process. The Committee understands that new sunscreen ingredient TEAs have been pending at FDA for more than 10 years without any approvals despite their widespread safe and effective use in other countries. FDA has listed final action on sunscreen ingredient applications in its Unified Agenda every year since 2008; however, no such action has ever been taken. Therefore, FDA shall take final action on all sunscreen ingredient applications currently pending by June 1, 2014, and shall work with Congress and stakeholders--including ingredient manufacturers, finished product manufacturers, dermatologists, cancer prevention organizations and others--to develop a new process that will allow safe and effective sunscreen ingredient market applications to receive a final decision from FDA within one year of application date. New dietary ingredients.--The Committee notes that FDA has not addressed issues relating to its July 2011 draft guidance on New Dietary Ingredients (NDI) for Dietary Supplements despite this Committee's urging it to do so last year. The Committee continues to be concerned that this guidance is being utilized by FDA for enforcement activities despite the document only being draft guidance. The Committee directs FDA to report back within 60 days of enactment of this Act with a timeline on how it intends to re-engage the dietary supplement community to develop a final guidance on what constitutes a NDI. Food Safety Centers of Excellence.--The funding provided for CFSAN supports the base funding for the CFSAN Centers of Excellence at the FY 2011 level, including Food Safety Modernization Act collaborative efforts with these Centers. The Committee encourages FDA to maintain an appropriate funding level for both Food Safety Modernization Act related and other food safety related activities performed by these Centers of Excellence. Cosmetics.--The Committee directs the Office of Cosmetics and Colors to respond by September 30, 2013, to a citizen petition setting safety levels for trace amounts of lead in cosmetics. Food and Drug Safety and Innovation Act.--The Committee is aware that shortages of critical drugs persist following the enactment of the Food and Drug Safety and Innovation Act. Surveys conducted by the American Association of Nurse Anesthetists, the American Hospital Association, and the American Society of Health-System Pharmacists report persistent shortages of drugs used in anesthesia care, oncology, and other services, owing primarily to problems in manufacturing, which impair patient access to care and patient experiences in the healthcare system, delay surgical procedures, and possibly increase overall healthcare costs. The Committee directs the Commissioner to continue to prioritize the public reporting of manufacturing shortages and to work with industry to prevent conditions that might lead to drug shortages. Food and Veterinary Medicine.--The Committee is aware of the important support provided to FDA's food and veterinary medicine programs and through its research and program relations with their centers of excellence. The Committee encourages FDA to maintain an appropriate funding level for both Food Safety Modernization Act related activities and the base work performed by these centers. Compounded Drugs.--The Committee is concerned by the quantity and volume of recalls of compounded sterile products and therapies. The Committee awaits the results of a study by GAO providing updated information on state and Federal oversight of compounding. Furthermore, the Committee encourages FDA and the States to work together to improve and strengthen oversight and enforcement of compounding pharmacies. Food Product Tracing.--Pursuant to Section 204 of the Food Safety Modernization Act, FDA initiated pilot projects for improving product tracing along the food supply system and the establishment of recordkeeping requirements for high-risk foods. These pilots were conducted by the Institute of Food Technologists, in consultation with various industry sectors, USDA, state agencies, and consumer groups. A report on these projects was published on March 4, 2013, and that report affirmed that industry and government continue to pursue traceability goals on separate tracks and with little collaboration. The Committee directs the Commissioner, in consultation with the Secretary of Agriculture, to create a science-based, international food traceability initiative through a collaborative public-private partnership model. Furthermore, the Committee directs the Commissioner to provide a report within 180 days of enactment of this Act detailing the structure, goals, and implementation status of such traceability initiative. Center for Tobacco Products Performance.--The Committee understands that GAO is conducting a study of FDA's premarket review of tobacco products. The Committee directs that, upon publication of that study, FDA shall use it to identify a set of regulatory performance standards that will address pending and new substantial equivalent applications, pending and new modified risk applications, citizen petitions, and meeting requests. The Committee further directs FDA to report to the Committees on Appropriations by March 31, 2014, on the implementation of such performance standards. Low-Risk, Expedited Imports.--The current fiscal environment and the growing number of import entries require that efforts to enhance safety must be directed towards the most serious compliance infractions. The Committee strongly encourages FDA to establish a pilot project to expedite imports for importers with strong safety records. Such project could be modeled on the Customs and Border Protection (CBP) Customs- Trade Partnership Against Terrorism and Importer Self- Assessment programs which address security of imported products. The goal would be new trade facilitation methods for low-risk importers that provide accurate and reliable data, have a history of importing compliant products, and low risk cargo that could be incorporated into the import inspection process, thereby enabling FDA to better leverage financial resources. FDA is strongly encouraged to provide clear guidelines for those importers that are low-risk and to collaborate with CBP and other relevant agencies to enhance information sharing between agencies on this work. FDA is directed to provide a report to the Committee on its efforts in this regard by December 1, 2013. Cough and Cold Products for Children.--The Committee is concerned that FDA has not issued a proposed rule revising the monograph regulating the labeling of over-the-counter cough and cold products for children. The Committee directs the agency to publish a proposed rule by December 31, 2013, based on scientific evidence for safety and efficacy in pediatric populations and taking into consideration the October 19, 2007, joint recommendations of its Pediatric Advisory Committee and Nonprescription Drugs Advisory Committee. Data Collection.--To assist efforts intended to address antibiotic use, the Committee directs the Secretaries of Health and Human Services and Agriculture to require appropriate agencies to collaborate to (1) identify approaches for collecting detailed data on antibiotic use in food-producing animals, (2) seek stakeholder and broad public input to develop a proposal for collecting this information, and (3) use the data to assess the effectiveness of policies to curb antibiotic resistance. The Committee further directs FDA to ensure that ARS continues to analyze, characterize, and report on data collected through NARMS. Seafood Advisory.--FDA must publish a final seafood advisory in conjunction with all applicable parties as directed in House Report 112-101 and Senate Report 112-73. The advisory must be consistent with USDA's dietary guidelines and be completed and available to the public by June 30, 2013. User Fees.--The Committee is concerned about subjecting FDA user fees to sequestration as these fees are not normal tax revenue. It is important to maintain the integrity and industry support for user fee programs. The Committee encourages FDA to reevaluate its calculations of sequestration in regard to user fees. Statutory Deadlines.--The Committee is aware the Administration continues to miss statutory deadlines for rulemaking to implement Public Law 111-353. The Committee expects the Administration to meet the statutory timelines for implementing Public Law 111-353 and directs FDA to provide a report every 180 days detailing the reasons and justification for any proposed rule or final regulation being 120 days or more beyond its statutory deadline. Mammography Quality.--The Committee urges FDA to follow up the November 2011 meeting of the National Mammography Quality Assurance Advisory Committee by promptly reviewing the evidence supporting including information related to an individual's breast density in the mammogram patient report and physician report. Canned Tuna.--The Committee directs FDA to revise the standard of identity for canned tuna to adopt the drained weight fill of container standard as requested in the 1994 ``Citizens Petition to Amend Canned Tuna Standard of Identity, 21 CFR 161.190, Docket No. FDA-2011-P-0763.'' According to the Congressional Research Service, the United States is the only country that uses the pressed cake weight fill of container standard that requires outdated 1950s technology. CODEX, the Association of Official Analytical Chemists, and all other countries use the drained weight fill of container. FDA shall revise the standard of identity for canned tuna to replace the pressed cake weight method with the drained weight method by December 31, 2013. FDA shall approve temporary marketing permits that adopt the drained weight method consistent with international standards until such time as final regulations are published updating the standard of identity for canned tuna. Impact on Small Businesses.--The Committee is concerned by unintended consequences of the Generic Drug User Fee Act (GDUFA) fee structure. While the Committee understands that user fees provide the resources to facilitate generic drug approvals, the Committee believes FDA should study the impact of smaller generic manufacturers' ability to pay at the same level as large manufacturers. The Committee directs FDA to provide a report to the Committees on Appropriations on the impact of the GDUFA fee structure on smaller generic drug manufacturers within 180 days of enactment of this Act. Abuse-Deterrent Drugs.--The Committee supports FDA's recent efforts to ensure that certain opioids are kept off the market and commends the agency for removal of those products for reasons of safety or effectiveness. The Committee understands that FDA established draft guidance in January 2013 entitled Evaluation and Labeling of Abuse-Deterrent Opioids, and encourages the agency to move expediently to finalize such guidance. Artificial Pancreas.--The Committee applauds the FDA for its final guidance for artificial pancreas device systems, released in November 2012, which provides clear and reasonable guidance for research and premarket review of such systems, which could transform the lives of those living with type 1 diabetes. The Committee urges the FDA to ensure that the flexible, science-based approach reflected in its guidance is implemented consistently in the IDE and PMA review process to ensure that safety and effectiveness of innovative systems can be tested without delay and improved devices can become available to those with type 1 diabetes in the near future. Compounding of Sterile Injectable Prescription Drugs.--The Committee urges the Food and Drug Administration to use its existing authority to closely inspect and supervise large-scale compounding and repackaging of sterile injectable drugs and biological products, especially those administered into areas where there is tempered immunity. Food Additive Petition.--The Committee understands that a Food Additive Petition has been submitted to the agency regarding the fortification of corn masa flour with folic acid to prevent neural tube defects such as spina bifida. The Committee encourages the agency to consider this petition expeditiously and, if further data or information is needed from the petitioners, to request it in a timely fashion to ensure that the petition is not unduly delayed. Pediatric Device Consortia Program.--The Committee is pleased with the success of the Pediatric Device Consortia Grant Program, authorized under Section 305 of Public Law 110- 85. The program funds consortia to assist innovators in developing medical and surgical devices designed for the unique needs of children, needs that often go unmet by devices currently available on the market. The consortia funded by this program have assisted in the development of over 219 pediatric device ideas since its inception. The Committee urges the FDA's continued support of this important program. BUILDINGS AND FACILITIES 2013 appropriation*................................... $5,186,000 2014 budget estimate.................................. 8,788,000 Provided in the bill.................................. - - - Comparison: 2013 appropriation................................ -5,186,000 2014 budget estimate.............................. -8,788,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS The Committee does not provide an appropriation for the Building and Facilities account. INDEPENDENT AGENCIES Commodity Futures Trading Commission 2013 appropriation*................................... $205,294,000 2014 budget estimate.................................. 315,000,000 Provided in the bill.................................. 194,555,000 Comparison: 2013 appropriation................................ -10,739,000 2014 budget estimate.............................. -120,445,000 *FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB. COMMITTEE PROVISIONS For the Commodity Futures Trading Commission, the Committee provides an appropriation of $194,555,000, of which $35,500,000 is for the purchase of information technology. Regulations.--The Committee is concerned about duplicative and overreaching regulations that are resource intensive. The Committee includes bill language directing the Commission to submit cost-benefit studies of these regulations to the Committees of jurisdiction. Swap Dealer De Minimis.--The Committee directs the Commission to submit a report within 60 days of enactment to the Committees on Appropriations of the House and Senate that: (1) quantifies the number of swap dealers currently registered with the Commission; (2) lists the aggregate gross notional amount of swap activity as of the date of enactment per CFTC regulation 1.3(ggg)(4) for each registered swap dealer without individually identifiable information; (3) estimates the number of additional swap dealers that will register with the Commission if the de minimis threshold is reduced to $3 billion; (4) lists each registered swap dealer, without individually identifiable information, that is deemed a Systemically Important Financial Institution by the Financial Stability Oversight Commission and/or the Financial Stability Board; and (5) lists the total revenue and assets of each registered swap dealer and corresponds with the data provided in criteria #2 and #3 without individually identifiable information. Administrative Law Judges.--The Committee is concerned about the elimination of the Administrative Law Judges (ALJ) program and a possible reprogramming of those funds while an investigation regarding CFTC's reduction-in-force is ongoing. Further questions have been raised by the Federal ALJ Conference regarding authority under the Administrative Procedures Act and best practices of CFTC's intention to use non-ALJ hearing officers. Minimum requirements for such hearing officers do not include a law degree, but the officers would still be able to make administrative case law disbarring and disqualifying market participants. The additional fact that CFTC has sole authority to hire and fire these non-ALJ hearing officers removes their ability to make independent decisions free from political influence. Five-year Strategic Information Technology Plan.--The Committee directs CFTC to develop a five-year, strategic technology investment plan. This plan may be produced individually or incorporated as an appendix to the Commission's five-year strategic plan. The plan should include achievable objectives with measurable results supported by projected resource requirements. The focus should be on market surveillance, risk management, and customer protection by transitioning from personnel to technology in today's electronic marketplace. Pay Cost.--The Committee does not include requested funding for a civilian pay increase across the Commission. Should the President provide a civilian pay increase for 2014, it is assumed that the cost of such a pay increase will be absorbed within existing appropriations for fiscal year 2014. Farm Credit Administration LIMITATION ON ADMINISTRATIVE EXPENSES 2013 limitation....................................... ($63,300,000) 2014 budget estimate.................................. (63,300,000) Provided in the bill.................................. (61,900,000) Comparison: 2013 limitation................................... -1,400,000 2014 budget estimate.............................. -1,400,000 COMMITTEE PROVISIONS For a limitation on the expenses of the Farm Credit Administration, the Committee provides $61,900,000. Executive Compensation Regulation.--The bill includes language regarding FCA's executive compensation regulation. FCA Administrative Expenses.--The Committee continues to be concerned about the increases in FCA's administrative expenses, its growing assessments on Farm Credit System institutions, large carryover amounts, and the significant balance in its interest reserve fund. The Committee directs the agency to include a plan to substantially reduce its carryover in its fiscal year 2015 budget request. Limitation on Administrative Expenses.--The Committee provides FCA with authority to exceed its limitation by up to 10 percent upon notification to the House and Senate Committees on Appropriations. TITLE VII GENERAL PROVISIONS (INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS) The General Provisions contained in the accompanying bill for fiscal year 2014 are fundamentally the same as those included in last year's appropriations bill. The following general provisions are included in the bill: Section 701: Limitation on the purchase of passenger motor vehicles. Section 702: Transfer authority regarding the Working Capital Fund. Section 703: Limitation on certain obligations. Section 704: Indirect cost rates for cooperative agreements with nonprofit institutions. Section 705: Disbursement of rural development loans. Section 706: Authority of the Chief Information Officer relating to new IT systems. Section 707: Availability of mandatory conservation program funding. Section 708: Rural Utility Service borrower eligibility. Section 709: Indirect costs related to research grants. Section 710: Availability of agency funds for information technology. Section 711: Funding availability for liquid infant formula. Section 712: Prohibition on first-class airline travel. Section 713: Use of funds authorized by the Commodity Credit Corporation Act. Section 714: Limitation on funds for commodities under the Bill Emerson Humanitarian Trust. Section 715: Funding for advisory committees. Section 716: Indirect costs for competitive agricultural research grants. Section 717: Language regarding the Food and Nutrition Act of 2008. Section 718: Limitation on certain funds. Section 719: Limitation on certain funds. Section 720: Language on user fee proposals without offsets. Section 721: Language on reprogramming. Section 722: Language on fees for the business and industry guaranteed loan program. Section 723: Language on questions for the record. Section 724: Language regarding prepackaged news stories. Section 725: Language on prohibition on paid details in excess of 30 days. Section 726: Language on the mohair program. Section 727: Rescission of certain unobligated balances. Section 728: Language regarding spending plans. Section 729: Rescission of certain unobligated balances. Section 730: Language on controls over humanitarian food assistance. Section 731: Use of funds for humanitarian food assistance programs. Section 732: Language on agency rental payments. Section 733: Rescission of certain unobligated balances. Section 734: Rescission of certain unobligated balances. Section 735: Language regarding the Single Family Housing Direct Loan Program. Section 736: Limitation on certain funds. Section 737: Rescission of certain unobligated balances. Section 738: Rescission of certain unobligated balances. Section 739: Language regarding USDA loan programs. Section 740: This provision establishes a National Commission on Hunger. Section 741: Language is included regarding reprogramming of funds. Section 742: Language is included regarding regulations under the Packers and Stockyards Act. Section 743: Language is included regarding WIC. Section 744: Language is included regarding improper payments. Section 745: Language is included regarding nutrition programs. Section 746: Sense of Congress regarding hunger. Section 747: Language is included regarding rural housing. Section 748: Language is included regarding CFTC. Section 749: Language on horse slaughter. Section 750: Language is included for the Spending Reduction Account. HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS TRANSFER OF FUNDS Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following lists the transfers of unexpended balances included in the accompanying bill. 1. Hazardous Materials Management.--The bill allows the funds appropriated to the Department for hazardous materials management to be transferred to agencies of the Department as required. 2. Departmental Administration.--The bill requires reimbursement for expenses related to certain hearings. 3. Office of the Assistant Secretary for Congressional Relations.--The bill allows a portion of the funds appropriated to the Office of the Assistant Secretary to be transferred to agencies. 4. Animal and Plant Health Inspection Service.--Authority is included to enable the Secretary of Agriculture to transfer from other appropriations or funds of the Department such sums as may be necessary to combat emergency outbreaks of certain diseases of animals, plants, and poultry. 5. Funds for Strengthening Markets, Income, and Supply.-- The bill limits the transfer of section 32 funds to purposes specified in the bill. 6. Farm Service Agency Salaries and Expenses.--The bill provides that funds provided to other accounts in the agency may be merged with the salaries and expenses account of the Farm Service Agency. 7. Dairy Indemnity Program.--The bill authorizes the transfer of funds to the Commodity Credit Corporation, by reference. 8. Commodity Credit Corporation.--The bill includes language allowing certain funds to be transferred to the Foreign Agricultural Service for information resource management activities. 9. Rural Development Salaries and Expenses.--The bill provides that prior year balances from certain accounts shall be transferred to and merged with this account. 10. Rural Community Facilities Program Account, Rural Business Program Account, and Rural Water and Waste Disposal Program Account.--The bill provides that balances from the Rural Community Advancement Program may be transferred to and merged with these accounts. 11. Child Nutrition Programs.--The bill includes authority to transfer section 32 funds to these programs. 12. Foreign Agricultural Service Salaries and Expenses.-- The bill allows for the transfer of funds from the Commodity Credit Corporation Export Loan Program Account. 13. Food for Peace Title I Direct Credit and Food for Progress Program Account.--The bill allows funds to be transferred to the Farm Service Agency, Salaries and Expenses account. The bill also provides that funds made available for the cost of title I agreements and for title I ocean freight differential may be used interchangeably. 14. Commodity Credit Corporation Export Loans Program.--The bill provides for transfer of funds to the Foreign Agricultural Service and to the Farm Service Agency for overhead expenses associated with credit reform. 15. Food and Drug Administration, Salaries and Expenses.-- The bill allows funds to be transferred among activities. 16. General Provisions.--The bill allows unobligated balances of discretionary funds to be transferred to the Working Capital Fund. 17. General Provisions.--The bill allows funds to be transferred to recover the full cost of space and security expenses.CHANGES IN THE APPLICATION OF EXISTING LAW Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of the House of Representatives, the following statements are submitted describing the effect of provisions in the accompanying bill that directly or indirectly change the application of existing law. The bill includes a number of provisions which place limitations on the use of funds in the bill or change existing limitations and which might, under some circumstances, be construed as changing the application of existing law: 1. Office of the Secretary.--Language is included to limit the amount of funds for official reception and representation expenses, as determined by the Secretary. 2. Departmental Administration.--Language is included to reimburse the agency for travel expenses incident to the holding of hearings. 3. Agricultural Research Service.--Language is included that allows the Agricultural Research Service to grant easements at the Beltsville, MD, agricultural research center and to grant easements at any facility for the construction of a research facility for use by the agency. 4. Animal and Plant Health Inspection Service.--A provision carried in the bill since fiscal year 1973 regarding state matching funds has been continued to assure more effective operation of the brucellosis control program through state cost sharing, with resulting savings to the Federal budget. Language is included to allow APHIS to recoup expenses incurred from providing technical assistance goods, or services to non-APHIS personnel, and to allow transfers of funds for agricultural emergencies. Language is included to limit the amount of funds for representational allowances. 5. Agricultural Marketing Service, Limitation on Administrative Expenses.--The bill includes language to allow AMS to exceed the limitation on administrative expenses by 10 percent with notification to the Appropriations Committees. This allows flexibility in case crop size is understated and/or other uncontrollable events occur. 6. Grain Inspection, Packers and Stockyards Administration, Inspection and Weighing Services.--The bill includes authority to exceed the limitation on inspection and weighing services by 10 percent with notification to the Appropriations Committees. This allows for flexibility if export activities require additional supervision and oversight, or other uncontrollable factors occur. 7. Dairy Indemnity Program.--Language is included by reference that allows the Secretary to utilize the services of the Commodity Credit Corporation for the purpose of making dairy indemnity payments. 8. Agricultural Credit Insurance Fund Program Account.-- Language is included that deems the pink bollworm a boll weevil for the purposes of administering the boll weevil loan program. 9. Risk Management Agency.--Language is included to limit the amount of funds for official reception and representation expenses. 10. Commodity Credit Corporation Fund.--Language is included to provide for the reimbursement appropriation. Language is also included to allow certain funds transferred from the Commodity Credit Corporation to be used for information resource management. In addition, language is included which limits the amount of funds that can be spent on operation and maintenance costs of CCC hazardous waste sites. 11. Natural Resources Conservation Service--Conservation Operations.--Language which has been included in the bill since 1938 prohibits construction of buildings on land not owned by the government, although construction on land owned by States and counties is permitted as authorized by law. 12. Rural Development Salaries and Expenses.--Language is included to allow funds to be used for advertising and promotional activities and to limit the amount of funds to provide modest nonmonetary awards to non-USDA employees. 13. Rental Assistance Program.--Language is included which provides that agreements entered into during the current fiscal year be funded for a one-year period. 14. Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).--Language is included to purchase infant formula except in accordance with law and pay for activities that are not fully reimbursed by other departments or agencies unless authorized by law. 15. Supplemental Nutrition Assistance Program.--Language is included on funds availability for Employment and Training, the Nutrition Education and Obesity Prevention Grant Program, and to enter into contracts and employ staff to conduct studies, evaluations, or to conduct activities related to program integrity. 16. Foreign Agricultural Service.--Language carried since 1979 enables this agency to use funds received by an advance or by reimbursement to carry out its activities involving international development and technical cooperation. Language is included to limit the amount of funds for official reception and representation expenses. 17. Commodity Futures Trading Commission.--Language is included to limit the amount of funds for official reception and representation expenses. 18. Farm Credit Administration.--The bill includes authority to exceed the limitation on assessments by 10 percent with notification to the Appropriations Committees. 19. General Provisions.-- Section 704: This provision provides that none of the funds in this Act may be made available to pay indirect costs charged against competitive agricultural research, education, or extension grants awarded by the National Institute of Food and Agriculture in excess of 10 percent of total direct costs. Section 705: This provision allows funds made available in the current fiscal year for the Rural Development Loan Fund program account; the Rural Electrification and Telecommunications Loans program account; and the Rural Housing Insurance Fund program account to remain available until expended to disburse obligations. Section 706: Language is included that requires approval of the Chief Information Officer and the concurrence of the Executive Information Technology Investment Review Board for acquisition of new information technology systems or significant upgrades, and that prohibits the transfer of funds to the Office of the Chief Information Officer without the notification of the Committees on Appropriations of both Houses of Congress. Section 707: Language is included regarding the availability of funds for certain conservation programs. Section 708: Language is included regarding certain Rural Utilities Service Programs. Section 709: Language is included regarding indirect costs to grants made under section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998. Section 710: Language is included that allows unobligated balances of the Farm Service Agency and Rural Development mission areas to be used for information technology purposes. Section 711: Language is included regarding reconstituted liquid concentrate infant formula issuance to WIC participants. Section 712: Language is included regarding the prohibition of first-class travel by the employees of agencies funded in this Act. Section 713: Language is included regarding the use of authorities of the Commodity Credit Corporation. Section 715: Language is included that limits the amount of spending for USDA Advisory Committees. Section 716: Language is included modifying matching requirements for certain research grants. Section 717: Language is included regarding the Food and Nutrition Act of 2008. Section 718: Language regarding certain limitations. Section 719: Language regarding certain limitations. Section 720: Language is included that prohibits funds from being used to prepare a budget submission to Congress that assumes reductions from the previous year's budget due to user fee proposals unless the submission also identifies spending reductions which should occur if the user fees are not enacted. Section 721: Language is included that requires certain reprogramming procedures of funds provided in Appropriations Acts. Section 722: Language is included regarding fees for the business and industry guaranteed loan program. Section 723: This provision prohibits the Department of Agriculture or the Food and Drug Administration from transmitting or making available to any non-Department of Agriculture or non-Department of Health and Human Services employee questions or responses to questions that are a result of information requested for the appropriations hearing process. Section 724: Language regarding prepackaged news stories. Section 725: This provision prohibits any employee of the Department of Agriculture from being detailed or assigned to any other agency or office of the Department for more than 30 days unless the individual's employing agency or office is fully reimbursed by the receiving agency or office for the salary and expenses of the employee for the period of assignment. Section 726: Language is included regarding the mohair program. Section 727: Rescission of certain unobligated balances. Section 729: Rescission of certain unobligated balances. Section 731: Language is included regarding the use of funds for humanitarian food assistance programs. Section 732: Language is included regarding USDA agency rental payments. Section 733: Rescission of certain unobligated balances. Section 734: Rescission of certain unobligated balances. Section 735: Language regarding the Single Family Housing Direct Loan Program. Section 736: Language regarding certain limitations. Section 737: Rescission of certain unobligated balances. Section 738: Rescission of certain unobligated balances. Section 739: Language regarding USDA loan programs. Section 740: This provision establishes a National Commission on Hunger. Section 741: Language is included regarding reprogramming of funds. Section 742: Language is included regarding regulations under the Packers and Stockyards Act. Section 743: Language is included regarding WIC. Section 744: Language is included regarding improper payments. Section 745: Language is included regarding nutrition programs. Section 746: Sense of Congress regarding hunger. Section 747: Language is included regarding rural housing. Section 748: Language is included regarding CFTC. Section 749: Language on horse slaughter. Section 750: Language is included for the Spending Reduction Account. DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED SPENDING ITEMS Neither the bill nor the report contains any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9 of rule XXI. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding: The Committee on Appropriations considers program performance, including a program's success in developing and attaining outcome-related goals and objectives, in developing funding recommendations. PROGRAM DUPLICATION No provision of this bill establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111-139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. DIRECTED RULE MAKING The bill does not direct any rule making. COMPLIANCE WITH RULE XIII, CL. 3(E) (RAMSEYER RULE) In compliance with clause 3(e) of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman): CONSOLIDATED AND FURTHER CONTINUING APPROPRIATIONS ACT, 2012 (Public Law 112-55) * * * * * * * DIVISION A--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES * * * * * * * TITLE VII GENERAL PROVISIONS (INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS) * * * * * * * Sec. 732. (a) * * * (b) Conveyance Authority.--With respect to an Agricultural Research Service facility to be closed pursuant to subsection (a), the Secretary of Agriculture may convey, with or without consideration, all right, title, and interest of the United States in and to any real property, including improvements and equipment thereon, of the facility to an eligible entity specified in subsection (c). If the Agricultural Research Service facility consists of more than one parcel of real property, the Secretary may convey each parcel separately and to different eligible entities. The conveyance authority provided by this subsection expires September 30, 2013, and all conveyances under this subsection must be completed by that date. The conveyance authority provided by this subsection expires September 30, 2014, and all conveyances under this subsection must be completed by that date. * * * * * * * ---------- FOOD AND NUTRITION ACT OF 2008 * * * * * * * ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL Sec. 16. (a) * * * * * * * * * * (h) Funding of Employment and Training Programs.-- (1) In general.-- (A) Amounts.--To carry out employment and training programs, the Secretary shall reserve for allocation to State agencies, to remain available for 15 months, from funds made available for each fiscal year under section 18(a)(1), $90,000,000 for each fiscal year, except that for fiscal year 2013 and fiscal year 2014, the amount shall be $79,000,000. (B) Allocation.--Funds made available under subparagraph (A) shall be made available to and reallocated among State agencies under a reasonable formula that-- (i) is determined and adjusted by the Secretary; and (ii) takes into account the number of individuals who are not exempt from the work requirement under section 6(o). (C) Reallocation.--If a State agency will not expend all of the funds allocated to the State agency for a fiscal year under subparagraph (B), the Secretary shall reallocate the unexpended funds to other States (during the fiscal year or the subsequent fiscal year) as the Secretary considers appropriate and equitable. (D) Minimum allocation.--Notwithstanding subparagraph (B), the Secretary shall ensure that each State agency operating an employment and training program shall receive not less than $50,000 for each fiscal year. (E) Additional allocations for states that ensure availability of work opportunities.-- (i) In general.--In addition to the allocations under subparagraph (A), from funds made available under section 18(a)(1), the Secretary shall allocate not more than $20,000,000 for each fiscal year to reimburse a State agency that is eligible under clause (ii) for the costs incurred in serving members of households receiving supplemental nutrition assistance program benefits who-- (I) are not eligible for an exception under section 6(o)(3); and (II) are placed in and comply with a program described in subparagraph (B) or (C) of section 6(o)(2). (ii) Eligibility.--To be eligible for an additional allocation under clause (i), a State agency shall make and comply with a commitment to offer a position in a program described in subparagraph (B) or (C) of section 6(o)(2) to each applicant or recipient who-- (I) is in the last month of the 3-month period described in section 6(o)(2); (II) is not eligible for an exception under section 6(o)(3); (III) is not eligible for a waiver under section 6(o)(4); and (IV) is not exempt under section 6(o)(6). (2) If, in carrying out such program during such fiscal year, a State agency incurs costs that exceed the amount allocated to the State agency under paragraph (1), the Secretary shall pay such State agency an amount equal to 50 per centum of such additional costs, subject to the first limitation in paragraph (3), including the costs for case management and casework to facilitate the transition from economic dependency to self- sufficiency through work. (3) The Secretary shall also reimburse each State agency in an amount equal to 50 per centum of the total amount of payments made or costs incurred by the State agency in connection with transportation costs and other expenses reasonably necessary and directly related to participation in an employment and training program under section 6(d)(4), except that the amount of the reimbursement for dependent care expenses shall not exceed an amount equal to the payment made under section 6(d)(4)(I)(i)(II) but not more than the applicable local market rate, and such reimbursement shall not be made out of funds allocated under paragraph (1). (4) Funds provided to a State agency under this subsection may be used only for operating an employment and training program under section 6(d)(4), and may not be used for carrying out other provisions of this Act. (5) The Secretary shall monitor the employment and training programs carried out by State agencies under section 6(d)(4) to measure their effectiveness in terms of the increase in the numbers of household members who obtain employment and the numbers of such members who retain such employment as a result of their participation in such employment and training programs. * * * * * * * APPROPRIATIONS NOT AUTHORIZED BY LAW Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of the House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law for the period concerned: (In thousands of dollars) ---------------------------------------------------------------------------------------------------------------- Appropriations in Agency/Program Last year of Authorization last year of Appropriations authorization level authorization in this bill ---------------------------------------------------------------------------------------------------------------- Farm Service Agency: Dairy Indemnity Program................... 9/30/2013 Such sums Such sums Such sums Food and Nutrition Service: Supplemental Nutrition Assistance Program. 9/30/2013 Such sums 77,290,160 76,332,112 Commodity Supplemental Food Program....... 9/30/2013 Prior year 182,237 202,682 caseload The Emergency Food Assistance Program..... 9/30/2013 100,000 48,160 45,592 Foreign Agricultural Service: McGovern-Dole International Food for 9/30/2013 Such sums 183,816 180,320 Education Program........................ National Institute of Food and Agriculture: Grants to upgrade facilities at 1890 9/30/2013 25,000 18,850 19,336 institutions............................. Education Grants for Hispanic-serving 9/30/2013 40,000 8,087 9,219 institutions............................. Extension Service......................... 9/30/2013 Such sums 463,896 459,011 Integrated research, education, and 9/30/2013 Such sums 20,942 31,137 extension grants......................... 1994 institution research grants.......... 9/30/2013 Such sums 1,756 1,801 Grants for insular areas.................. 9/30/2013 Such sums 1,609 1,800 Agriculture and Food Research Initiative.. 9/30/2013 700.000 290,468 290,657 Rural Business-Cooperative Service: Value-added Agricultural Product Market 9/30/2013 40,000 14,623 15,000 Development Grants....................... Appropriate Technology Transfer for Rural 9/30/2013 5,000 2,193 2,250 Areas.................................... Rural Energy for America Program.......... 9/30/2013 25,000 3,315 3,000 Rural Housing Service: Tribal College and University essential 9/30/2013 10,000 3,284 3,284 community facilities..................... Multi-family Housing Revitalization 9/30/2013 13,000 27,084 27,084 Program.................................. Rural Utilities Service: Distance Learning and Telemedicine........ 9/30/2013 100,000 24,323 24,323 Broadband telecommunications services..... 9/30/2013 25,000 3,899 5,500 Broadband telecommunications grants....... 9/30/2013 10,372 10,372 10,111 ---------------------------------------------------------------------------------------------------------------- RESCISSIONS Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following lists the rescissions of unexpended balances included in the accompanying bill: The bill proposes rescissions of $180,000,000 of funds derived from interest on the cushion of credit payments under the Rural Economic Development Loans Program Account; $206,000,000 from Section 32 funds; $30,000,000 from Agriculture Buildings and Facilities and Rental Payments; $2,017,000 from the Natural Resources Conservation Service; $1,314,000 from the Rural Housing Service; $41,000,000 from the bioenergy program; $40,694,000 from the biorefinery program; and $15,000,000 from the value-added grant program. COMPARISON WITH THE BUDGET RESOLUTION Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House of Representatives and section 308(a)(1)(A) of the Congressional Budget Act of 1974, the following table compares the levels of new budget authority provided in the bill with the appropriate allocation under section 302(b) of the Budget Act: (In millions of dollars) ---------------------------------------------------------------------------------------------------------------- 302(b) Allocation This bill ----------------------------------------------- Budget Budget authority Outlays authority Outlays ---------------------------------------------------------------------------------------------------------------- Discretionary................................................... 19,450 22,451 19,450 \1\21,294 Mandatory....................................................... 42,981 30,298 42,981 \1\30,298 ---------------------------------------------------------------------------------------------------------------- \1\Includes outlays from prior-year budget authority. FIVE-YEAR OUTLAY PROJECTIONS Pursuant to section 308(a)(1)(B) of the Congressional Budget Act of 1974, the following table contains five-year projections prepared by the Congressional Budget Office of outlays associated with the budget authority provided in the accompanying bill: Projection of outlays associated with the recommendation:ons of dollars) 2014......................................................\1\117,128 2015...................................................... 4,029 2016...................................................... 755 2017...................................................... 16 2018 and future years..................................... -1,768 --------------------------------------------------------------------------- \1\Excludes outlays from prior-year budget authority. --------------------------------------------------------------------------- ASSISTANCE TO STATE AND LOCAL GOVERNMENTS Pursuant to section 308(a)(1)(C) of the Congressional Budget Act of 1974, the amounts of financial assistance to State and local governments is as follows: (In millions of dollars) Budget Authority.............................................. 37,974 Outlays....................................................... \1\36,142 --------------------------------------------------------------------------- \1\Excludes outlays from prior-year budget authority.
MINORITY VIEWS OF THE HONORABLE NITA LOWEY AND THE HONORABLE SAM FARR We are dismayed by the House Republican leadership's refusal to go to conference to forge a bipartisan agreement on the budget resolution that addresses sequestration and provides workable 302(b) allocations for Appropriations bills. This imperils this year's process, making it impossible to move all 12 bills. Sequestration was intended to be a mechanism to force the parties to come together to address our long-term fiscal challenges. It was never meant to be, in itself, a tool for deficit reduction, and it was certainly never meant to be the basis for the discretionary spending cap in a budget resolution. If the current 302(a) allocation stays in place, the House will likely pass only a few bills with reasonable allocations, while the remaining bills will be given inadequate funding and may not go to the House floor. With the Ryan budget as the basis for discretionary spending, there will undoubtedly be one or more continuing resolutions needed to keep the government open and running. As a result of the Committee's inadequate overall allocation, the Agriculture subcommittee received an unacceptably low 302(b) allocation of $19.450 billion. This is $520 million (2.6%) below the CBO estimate of the President's request for the bill. However, the President's 2014 budget moved the Food for Peace program to the State, Foreign Operations bill. The 2014 Agriculture bill allocation, which assumes Food for Peace is funded in this bill, is $1.3 billion (6.2%) lower than the original 2013 conference agreement last fall, which also included Food for Peace funding. The impact of this allocation is evident in the inadequate funding provided for many important accounts in the bill. For example, we estimate that some 214,000 eligible applicants would be denied participation in WIC at the funding level in the bill. Compared to the President's request, we estimate there would be 454,000 unserved, eligible applicants. These estimates assume, as required in the bill, that no funds are used for breastfeeding counselors or for helping states convert from paper benefit vouchers to electronic benefit cards, an important and needed management reform. The bill could not even cover participation for all eligible individuals with use of the entire contingency fund. While the report suggests the President's budget estimates of participation in the program ``have been inflated,'' it does not explain why the majority believes the funding level in the bill is sufficient to serve all eligible applicants. In fact, the President's budget request for fiscal year 2012 was far closer to the actual spending level for that year than the funding bill enacted by Congress. In 2012, despite pleas from House Democrats, Congress underfunded WIC so severely that USDA had to transfer $400 million from SNAP to WIC on an emergency basis. Another critical program, Food for Peace, is also severely under-funded. While there may be debate about the administration's proposed reforms to the U.S. food aid program, there is no doubt that failing to adequately fund it is a tragic mistake. The bill cuts the program by $284 million (19.8%) below 2013 and $275 million (19.3%) below the 2014 request. Based on the average cost per person served in 2012, we believe more than 7.4 million people would not receive food assistance from the United States as a result of the House funding level. Shockingly, the Republican majority also continues its efforts to prevent the Commodity Futures Trading Commission from doing its vital work to provide greater transparency and competition in markets, more certainty for the farmers, ranchers, and small businesses that use these markets, and protection of taxpayers from having to pay for future bailouts. This bill funds the agency at $194.555 million, which is $10.7 million (5.2%) below the 2013 base the Republican bills use and $120 million (38%) below the 2014 request. The Republican majority must drop the pretense that Dodd-Frank is going to be repealed and provide the agency the resources it needs to write and enforce the law. We are troubled by language in the bill blocking a regulation by the Farm Credit Administration that provides for non-binding, advisory votes by shareholders on the compensation of the presidents and senior executives of member banks. In addition to these concerns, we note that several troublesome riders were adopted in full committee. We are concerned by the adoption of language requiring that white potatoes be added to the list of eligible foods in the WIC program. This rider was opposed by the American Academy of Pediatrics, the American Public Health Association and the March of Dimes, among others, because it violates the long- standing tradition of not interfering in science-based decisions about WIC foods. The current food package is based on extensive study, including recommendations by the Institute of Medicine. Political interference with that process will undermine the program and threaten its proven record of contributing to the health of mothers, infants and children. The Committee adopted a rider that bars a state from receiving any funds in the bill unless the state is in ``full compliance'' with certain eligibility requirements of the SNAP program. This amendment would have vast, negative consequences on states, their economies and on participants in a wide variety of USDA programs if it became law. While compliance with eligibility is a goal we all share, the most recent data shows the program already has an extremely low total error rate--the lowest in its history--3.8%, and overpayment errors are less than 3%. In Texas, for example, the total error rate for SNAP was below the national level, at 3.48%. Despite that commendable record, a single error in eligibility under the law cited in the amendment apparently would cause Texas to lose all the funding it receives in this bill. Had this been law in 2012, Texas would have lost, for example: $1,709,395,000 for 569 million lunches and 304 million breakfasts at more than 8100 schools and $561,000,000 that served an average of 970,000 women, infants and children a month in the WIC program. We do not see why the bill should carry language related to Dodd-Frank that should be considered in an authorization bill and that, in fact, is in an authorization bill, H.R. 1256, that passed the House just two days before the full Committee considered this bill. This unnecessary provision will only complicate consideration of the bill as it goes forward. We also see no reason for carrying language that was enacted in 2012 that blocks certain protections for small livestock producers, since USDA promulgated a final rule in 2011 fully consistent with that rider. We believe if there are any lingering concerns about this issue, they should be addressed in the pending farm bill. We hope that this rider will be dropped. While we will do our best to address the many shortcomings of this bill as the process moves forward, we do not support the bill in its current form. Nita M. Lowey. Sam Farr. Additional Views on International Food Aid of the Honorable Nita Lowey The United States is a generous nation and since the 1950s has fed billions of people around the world through the Food for Peace program. When originally designed, it served two goals--to help U.S. farmers by dealing with surplus commodities in a way that would boost prices and to meet a humanitarian imperative by feeding people in crisis. However, nearly sixty years later, the world has changed and the program needs to respond. The United States does not have the surpluses it did decades ago and it is now forced to purchase food on the commercial markets. Near record-high farm prices have meant our food aid dollars do not go as far. According to independent analyses, the number of direct recipients of our food aid has dropped from 74 million in 2006 to an average of 30 million more recently. The Green Revolution of the 1970s increased agricultural production worldwide, breaking the cycle of famine in many developing countries. Research has shown that famine and hunger are not necessarily caused by the lack of food, but frequently by lack of access to available food, often driven by conflict. According to a 2009 report by GAO, this locally-available food is a quarter to a third less expensive than in-kind food aid. In addition to being cheaper, buying food locally often means more culturally appropriate and nutritious options. The current Food for Peace program also includes a requirement that half of American food aid must be transported on U.S.-flagged ships. Not only is this more costly, but in emergencies where delay can have deadly consequences, various studies have shown that it will take 70-100 days longer than purchasing the food regionally. In many conflicts, importing and transporting large quantities of commodity food is dangerous, or even logistically impossible. Taken with the lack of existing surpluses in the United States and the opportunity in many cases to support developing country farmers in the region, the current cargo transport requirement no longer makes sense. Given these factors, I welcomed the Administration's proposal to reform the food aid program as part of the FY 2014 budget request. The country's current fiscal crisis demands that all policymakers take a critical and judicious look at each program the government funds to determine whether it is efficient and effective in reaching its objective. With the lack of agricultural surpluses in our country, the sole remaining objective of our food aid programs should be to serve the maximum number of people in need in the most cost effective way possible. Therefore, I am disappointed that the FY 2014 Agriculture Appropriations bill not only rejects the Administration's proposal for reform but does nothing to improve the effectiveness of food aid programs in any way. This is despite the clearly documented deficiencies of the current program. The Administration's proposal would shift the food aid program to the State, Foreign Operations bill into three separate accounts: International Disaster Assistance, Development Assistance, and a new Emergency Food Assistance Contingency Fund. The proposal guarantees that more than half of the emergency assistance would still be procured domestically and that development programs would continue as a critical element of U.S. response to global hunger and resilience. Monetization would be replaced with direct funding for programs, cutting out middlemen and reducing leakage. Emergency food aid would be supplemented with more flexible tools such as vouchers and purchases from local suppliers extending the reach of our support. With the same amount of resources and these careful reforms, the Administration estimates that their proposal could feed 2 to 4 million additional people. The Center for Global Development's recent analysis shows that the proposal could help as many as 10 million additional people. While these programs are funded through this bill, the United States Agency for International Development (USAID) has been implementing Food for Peace for many years. Both transparency and oversight would be improved by consolidating the funding and the implementing agency in one bill. For both emergency and non-emergency programs, these programs can gain efficiencies by seamless planning, implementation, and evaluation with other USAID humanitarian and food security programs. The crisis in the Horn of Africa, the current devastation of the communities in Syria, and the fragile nature of chronically hungry places like the Sahel region of Africa call us to be responsible stewards of resources, both for United States taxpayers and the people around the world who depend on our assistance. These reforms are proven--monetization programs in the Democratic Republic of the Congo are only earning $0.51 for every dollar of commodities provided. I hope the many stakeholders and congressional committees involved in these programs can work together to ensure that United States food aid programs remain an effective expression of U.S. generosity to the world's most vulnerable people. Nita M. Lowey. Additional Views of the Honorable Sam Farr Though the appropriation to the FDA overall is slightly more than last year, it bears noting that FDA resources are artificially constrained due to the sequestration of user fees. Just as sequestration has artificially driven allocations to the committee to new lows, it also has the unintended consequence of denying the FDA access to user fees paid by industry to the agency to help cover costs associated with testing, review and approval of new drugs, medical devices and health treatments. For example, more than 2700 generic drug applications are backlogged and have little chance of moving expeditiously through the approval process because of the restriction on resources--in this case, $85 million paid in FY13 that cannot be spent. Granted, the matter of sequestration is larger than its single impact on the FDA, nonetheless the impact is real and had sequestration not occurred the FDA would have significantly more resources available to it--resources paid directly by industry, not taxpayers--than can be appropriated under this bill. We do a disservice to the public if we do not try to address this matter. Sam Farr.