2017 Federal Issues Book

2017 Federal Issues Book Huntsville/Madison County Chamber

225 Church Street NW, Huntsville, AL 35801 phone 256.535.2000

| fax 256.353.2070

hsvchamber.org asmartplace.com

2017 Chamber Issues Book

Table of Contents

FEDERAL BUDGET AND DEFICIT REDUCTION . . . . . . 1

Patriot Air & Missile Defense International & Domestic Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

INFRASTRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Terminal High Altitude Area Defense (THAAD) . . . . . . . . . 8

Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Integrated Air & Missile Defense (IAMD) Mission Command . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Municipal Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Tactical Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TVA Board Representation . . . . . . . . . . . . . . . . . . . . . . 2

High Energy Laser Development . . . . . . . . . . . . . . . . . . . . . 9

Regional Energy Innovation . . . . . . . . . . . . . . . . . . . . . 2

Countering Enemy Indirect Fires, Unmanned Aerial Systems, and Cruise Missiles . . . . . . . . . . . . . . . . . . . 9

Enhancing Local Air Service through Deregulation . . . 3 Fully Fund the Airport Improvement Fund (AIP) . . . . . 3 Reduce Federal Regulations and Unfunded Mandates . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Small Satellite and Small Launch Vehicle . . . . . . . . . . 10 AVIATION S&T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Apache Helicopters . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Eliminate the Federal Cap On Local Originating Passenger Facility Charges . . . . . . . . . . . . . . . . . . . . . 3

Utility Helicopters . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CYBER SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Improved Turbine Engine (ITE) . . . . . . . . . . . . . . . . . . 13

Expanding the Tennessee Valley’s Excellence in Cyber Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Future Vertical Lift . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Electric System Cybersecurity . . . . . . . . . . . . . . . . . . . 4 Broadband . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 SUPPORT FOR FBI AND ATF . . . . . . . . . . . . . . . . . . . . . 5

Cargo Helicopters . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Fixed Wing Aircraft . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Unmanned Aircraft Systems (UAS) . . . . . . . . . . . . . . . 14 Unmanned Aircraft Systems (UAS) Operations in the National Airspace System (NAS) Ground Based Sense and Avoid (GBSAA) . . . . . . . . . . . . . . . . . . . . 14

SPACE POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

BIOTECH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

U.S. Human Space Flight & Exploration Policy . . . . . . 5

MISSILE AND SPACE INTELLIGENCE CENTER (MSIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

MISSILES, SPACE AND MISSILE DEFENSE AND HYPERSONIC WEAPONS . . . . . . . . . . . . . . . . . . . . . . . 5

EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Homeland Defense/Strategic Defense . . . . . . . . . . . . 6

Carl D. Perkins Career and Technical Education Act . . . . . . . . . . . . . . . . . . . . . . . 15

Ground-based Midcourse Defense (GMD) Program . . . . . 6 Missile Defense Engineering Team – Industry (MET-I) . . . . 6 Multi-Object Kill Vehicle (MOKV) . . . . . . . . . . . . . . . . . . . . . 6 Long Range Discrimination Radar (LRDR) . . . . . . . . . . . . . . 6

Hypersonic Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

WORKFORCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Workforce & Higher Education . . . . . . . . . . . . . . . . . 16 FEDERAL MEETING APPROVAL PROCESS AND LIMITED ROOM AVAILABILITY AT PER DIEM . . . . . . . 17

Conventional Prompt Strike Capability . . . . . . . . . . . . . . . . 7 Defense against Hypersonics . . . . . . . . . . . . . . . . . . . . . . . . 7

Theater Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

BRAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 MARKET PLACE FAIRNESS ACT . . . . . . . . . . . . . . . . . 17

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2017 Chamber Issues Book

FEDERAL BUDGET AND DEFICIT REDUCTION Our business community functions best with predictable and dependable funding for federal programs. The Budget Control Act, with its sequestration clause for controlling spending, has reduced predictability and reduced Congressional flexibility to fund the Government effectively. In addition, the inability of the Congressional and Executive Branch to authorize and appropriate the federal budget in an orderly predictable process has reduced dependability and timeliness of Federal funding. The Nation is falling behind friends and adversaries in advanced research and development across many areas resulting in an erosion of U.S. technological lead. We request that our members vigorously support efforts to eliminate sequestration, return to regular order for formulating and producing a Federal Budget, and increase, across the board, overall funding for science and technology and advanced research and development for defense and aerospace programs.

––––––– INFRASTRUCTURE Roads Our community has recently made tremendous progress funding infrastructure projects utilizing partnerships with the State, specifically, the 2014 agreement with the State of Alabama and the City of Huntsville to match funding to initiate $250 million road construction projects and the ATRIP road projects announced by Governor Bentley. The prospect of future rounds of Base Realignment and Closure (BRAC) make infrastructure improvements a top priority for the region. Robust transportation networks that can efficiently move commuters, freight, and services are vital for continued growth of the Tennessee Valley, inclusive of Redstone Arsenal. The Chairman of the Madison County Commission, the Mayors of Huntsville and Madison, and Redstone Arsenal leadership have jointly endorsed the following key projects as the top road priorities for the region: • I-565 to I-65: Add additional lanes along I-565 from SR 255 to I-65 to ease traffic congestion from increased passenger and cargo traffic moving along this important economic corridor.

• I-565/Research Park Boulevard Interchange Modification at Gate 9: Funding these needed interchange modifications to support exponential growth in traffic at Redstone Arsenal and the adjacent Redstone Gateway development.

• I-565 and Madison Boulevard (Exit 13) Interchange Modification for Resolute Way access at Redstone

Arsenal: Improvements through the commercial corridor to address major traffic issues on a route critical to Redstone Arsenal and Research Park commuters.

• Research Park Boulevard from I-565 to North of US 72: Provide funding to begin the design and construction of additional lanes to State Road 255 to support the recent exponential growth in traffic at Redstone Arsenal and Cummings Research Park.

• Arsenal Eastern Connector: Provide support and funding for implementing a final Corridor Study and Preliminary Engineering.

• US 72 East/ARC Corridor V from Shields Road eastward to the county line: Funding be allocated and appropriated through any remaining ARC dedicated monies and any eligible MAP-21 funds as soon as possible to improve this much needed corridor.

• Martin Luther King Jr. Blvd/Northern Bypass: Interchange at Memorial Parkway and extending the Northern Bypass from U.S. 231 to U.S. 72. Request support and funding for this project to provide more capacity and accessibility as a result of regional workforce traffic demand.

• Memorial Parkway at Mastin Lake Road: This project completes the next phase of non-stop traffic along US 231. Completing this project will allow non-stop traffic flow from Mastin Lake Drive in north Huntsville to Weatherly Road in south Huntsville.

• US Highway 72 West from Providence Main to County Line Road: This project improves overall traffic flow and provides critical capacity and safety improvements along this urban principal east-west arterial with average daily traffic volumes ranging from 32,000 to 45,000 vehicles per day.

Municipal Bonds State and local governments are continually updating their infrastructure, using the tax-free status of municipal bonds to attract borrowers. The tax-free status allows these bonds to sell at lower interest rates, thus saving these entities money – allowing their monies to go further. The effective 25 percent savings incumbent in these important financial instruments enables state and local governments to build and maintain more streets, water plants, utilities, etc. This also creates more jobs in our troubled economy. However, deficit reduction efforts at the federal level continue to undo the benefits of municipal bonds that have existed since 1812.

Community Impact: If congress removes the tax-free status of municipal bonds, the state of Alabama – all counties and cities – will provide fewer infrastructure additions and improvements and create fewer jobs.

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2017 Chamber Issues Book Requested Action: Congress should resist all efforts to change the tax-free status of municipal bonds.

TVA Board Representation TVA serves 490,000 households and 98,500 commercial and industrial customers in 17 Alabama counties in North Alabama. TVA operates three hydroelectric dams, one coal fired, one natural gas turbine, two solar generating plants, and one nuclear plant within the state of Alabama. TVA paid the state of Alabama $102.5 million in lieu of taxes based on power sales and the value of its assets within the state.

TVA was involved in creating and retaining 4,500 Alabama jobs with the concurrent investment of $994 million. TVA maintains navigation locks at its three Tennessee River dams, controlling floods and providing vast recreational opportunities for the pleasure of Alabamians. Alabama is second only to Tennessee, out of the seven states receiving TVA power, in the number of customers, assets, and power sales in the TVA system.

Impact: Alabama has only had two TVA board members representing its citizens in history. Alabama’s citizens deserve a voice in setting TVA policy and direction.

Requested Action: This Chamber requests that Alabama have representation on the TVA board to reflect its importance to the TVA system.

Regional Energy Innovation The Huntsville community continues to invest considerable time and effort to promote energy market economic development, and continues to assess emerging opportunities in the area with DOD, DOE, and the commercial market in support of the Mayor’s Energy Huntsville initiative. The Mayor’s Office, Huntsville/Madison County Chamber, HudsonAlpha Institute for Biotechnology, the University of Alabama in Huntsville (UAH), Redstone Arsenal, Army Corps of Engineers, NASA’s MSFC, U.S. Army Materiel Command, AMRDEC, Nexus Energy Center, Oak Ridge-Huntsville Partnership, the TVC, TechRich, BizTech, Huntsville Utilities, the U.S. Space and Rocket Center (USSRC), the Alabama Center for Sustainable Energy, and TVA are working to frame candidate energy projects and activities that would reduce community and DOD energy consumption, reduce logistics requirements in the field and provide low cost renewable power production capabilities at installations including Redstone and communities in the region. There are other initiatives in place to install renewable energy systems at Redstone Arsenal, BizTech, and other commercial locations in the region, and to deploy consumption monitoring systems at USSRC and in local residential and industrial facilities. Several proposals have been submitted and accepted that will continue for several years to support the DOE’s Better Buildings Program, the Georgetown University Energy Prize (GUEP) program.

Also, a significant ongoing activity is the U.S. Army Corps of Engineers Huntsville Center continues to execute significant contracting for renewable energy generation, and energy management and control systems. Both Huntsville Utilities Extreme Energy Makeover Project (HEEM) and the Huntsville Better Buildings Challenge (HBBC) are underway. The HEEM Project is creating extensive energy conservation and efficiency within several areas of the city, and the HBBC activity is also underway to encourage and assist private companies with their efforts to save energy costs, enabling them to grow, invest in new technology, and create American jobs.

Community Impact: Emerging energy technology companies and their solution systems, their DOD and commercial applications, represent a promising opportunity to diversify and grow the region’s economy in the energy sector. The Energy Huntsville organization acquired its 501(c)(6) nonprofit certification and has gained significant industry support enabling energy market economic growth in the area. The Huntsville community sees this as an opportunity to apply critical systems R&T and testing skills to new Huntsville projects such as the use of fuel cells in UAVs, biofuels in the Army fleet, the validation of renewable energy power production systems, field new portable power systems for the warfighter in support of the U.S. Army. The community also sees this as a way to spawn new commercial applications, and to further solidify Huntsville’s image and reputation as a provider of innovative and leading edge energy technical solutions.

Requested Actions: • Support an innovative energy pilot project at Redstone and the USSRC that is aligned with the area’s power generation and monitoring requirements to include feasibility analysis and possible deployment of a sCO2 Brayton Cycle pilot system by establishing a robust DOE budget.

• Support the provisions of the Military Energy Security Act to establish collaborative DOD and DOE Pilot Programs.

• Support Energy Huntsville’s planning and execution of its Annual Energy Summit that takes place in the Fall at the USSRC involving key DOD, DOE, TVA, DLA, NETL and other notable participants that bring energy focus to Huntsville and the region supporting the energy economic development objectives through representation and/or engagement.

• Support other DOD and DOE energy initiatives and proposals that enable technologies developed in the broader Tennessee Valley region to compete for funding via budget measures.

• Support policy and community initiatives that reduce barriers and enable businesses to take advantage of cost-effective energy efficiency and renewable energy programs.

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2017 Chamber Issues Book

Enhancing Local Air Service through Deregulation A majority of consumers recognize the importance of airports to the community, yet even with widespread support only a small percentage of the population is aware that Airport Improvement Program (AIP) federal funds are spent at the local level. Even less realize that while Congress deregulated the airline industry in 1978 – allowing airlines to set airfares based on market-conditions – community airports remain burdened with federal economic regulations and, for the most part, are powerless to address airlines airfare pricing in their community.

National Impact: Small Airports have been and are being severely impacted by airline consolidations (mergers), capacity reductions, increased airfares, and pilot shortage.

All of these issues intertwined result in reduced or eliminated air service. Airport infrastructure and economic deregulation of airports is a community and economic development issue. Airports need the ability to maintain effective modern infrastructure, as well as attract competitive airfares to their community, in order to meet the needs of commerce, industry, and the general public within their region.

Requested Action: Deregulate airports economically, similar to airline deregulation in 1978, in order to achieve greater flexibility for small airports to meet the specific air service development needs of their local community. This would allow small airports the ability to spend local airport revenues, without Federal Aviation Administration (FAA) limitations, to implement programs and policies at the local level which could enhance air service for their community.

Fully Fund the Airport Improvement Fund Referenced above is the Airport Improvement Program (AIP).

This fund, which is supported entirely by aviation system users, finances critical airport safety, security, and capacity projects at airports of all sizes across the country. Congress has provided $3.35 billion for AIP in the last two fiscal years.

Moving forward, we urge Congress to provide at least $3.35 billion dollars annually, and to ensure that those funds are not diverted for FAA operations.

Requested Action: Airports call on Congress to fully fund the AIP to ensure that these funds are not diverted to FAA operations.

Reduce Federal Regulations and Unfunded Mandates The FAA currently provides for less than 25 percent of the funding for airport capital improvements on an annual basis, but yet controls 100 percent of the airport’s activity. The FAA does not provide airports with general fund dollars, but

rather, all airport funding comes from users of the airport/ aviation system. The FAA merely handles these funds for redistribution to airports based on an archaic formula system. The FAA would serve the airport/aviation community better by allowing airports to set rates, fees, and charges – including the Passenger Facility Charge (PFC) – based on individual airport needs and solely at the local level, without any FAA interference.

Airports face redundancy and overly burdensome compliance and regulations: The 20-page Grant Assurance document that Sponsors (airports) “must” accept in conjunction with accepting an AIP Grant currently requires airports to comply with more than 56 different Federal Regulations, Executive Orders, and Federal Legislation. The majority of the Grant Assurance provisions are an overreach by the FAA to control airport activities for a small grant contribution. In addition, Public Sponsors have more stringent requirements than Private Sponsors. Sponsors must also meet the requirements of a 691-page FAA Compliance Manual, a 318-page AIP Handbook, and a 183-page PFC Order, which are just a few examples that further support the fact that the FAA overregulates airports.

Requested Action: Reduce burdens by changing the AIP grant application for entitlement funds to a receive and report process and remove redundant law requirements in grant assurances. Regarding land acquisition and sales for property purchased without federal funding, the FAA should be removed from having any say in disposal, use, or leasing of such property. The FAA should have no say in the leases, business practices, or fund usage of an airport, so long as the funds are used for the betterment of the airport, aviation system, or air service in their community, and there is no diversion of revenue for a non-airport related purpose. Federal, State, and Local agencies should pay for airport space, and the FAA should have no role in approval of non-airfield facilities. The FAA Compliance Manual – a 691-page document that is far over-reaching in its requirements of airports – should be reviewed with an airport industry-working group to eliminate unnecessary and burdensome requirements.

Eliminate the Federal Cap on Local Originating Passenger Facility Charges The PFC cap has not been raised since 2000, when Congress raised the cap to $4.50. Since then, construction costs have risen more than 50 percent and severely eroded the purchasing power of PFCs. Eliminating the cap (currently $4.50) for Originating Passengers only would restore the PFC’s lost purchasing power and allow airports to set their own levels based on locally-determined needs to ensure the continued safety, security, and modernization of their facilities. For clarity, the cap on connecting passengers at hub airports would remain at $4.50, thereby continuing to

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2017 Chamber Issues Book reduce the impact on small-community passengers which are generally required to connect at major hubs in order to reach their final destination.

Requested Action: Small communities around the country urge Congress to eliminate the federal cap on local Originating Passenger Facility Charges and maintain the $4.50 cap for Connecting Passenger Facility Charges. At a time when there is increasing pressure to reduce federal spending, eliminating the PFC cap would provide airports with the self-help they need to finance critical infrastructure projects without relying on scarce federal funds.

––––––– CYBER SECURITY Expanding the Tennessee Valley’s Excellence in Cyber Security National Strategic Defense Systems, designed/developed at Redstone Arsenal, require a rapid, integrated, agile framework, and processes to mitigate and prevent the substantial increase in known/unknown cyberattacks posing a destructive impact to critical National/State/Public infrastructure, industry, education, and financial resources. The complex, ambiguous boundaries and authorities related to command and control create a requirement for centralized coordination across the Tennessee Valley. Government and industry must partner to develop solutions for cyber defense and share the lessons learned from the cyber forensics of previous attacks to achieve the best posture against the cyber threats. Our cyber workforce – in collaboration with upper and midmanagement, engineers, scientists, business analysts, factory workers, and small business owners – must possess the necessary training, skills, and support structure to defend against cyber threats. The convergence of Federal/State/local governments and industry located in Huntsville provides an ideal place to implement a study to assess the vulnerabilities, identify scenarios, appropriate response resources (funding sources, personnel, equipment, facilities, policy, law) and barriers to execution, creating a cyber-safe, secure, resilient, and sustainable community. Funding support from Congress will enable the study. Team Redstone, comprised of all federal agencies located on Redstone Arsenal, will continue to pioneer the way to properly defend our aviation and missile system-of-system level demonstrations, battlefield systems, and soldiers against these invasive threats and their efforts.

Requested Actions: • Add research and development funding to the Aviation and Missile RD&E Center for aviation and missile technology development, as well as a good foundation for a Redstone “cyber campus” to support all Team Redstone members.

• Increase funding for PEO Missiles & Space and PEO Aviation for cyber security and supply chain security analyses in support of both missile systems and aviation, including unmanned aerial systems.

• In FY16, the U.S. Army AMRDEC initiated an Advanced Scientific Research Program in cyber security and supply chain risk management. The Advanced Scientific Research Program funding should be sustained in FY17 and increased in FY18 and beyond.

• Sustain and increase funding for the AMRDEC-MSIC offense-defense interaction in the cyber warfare domain.

• Funding to implement the study to assess the vulnerabilities, identify scenarios, and appropriate response resources necessary to execute a collaborative, cross-boundary response in the event of a cyber-attack.

• Provide research funding for UAH and the Southeast Region Cyber Research Center (SERCRC) to establish an expanded facility for educational collaborations in the fast-changing field of cybersecurity, resource it with stateof-the-art equipment and hire additional national experts to staff the facility for the first two years. This initiative could easily be folded into the Defense Innovation UnitExperimental (DIUX) effort, should the Department of Defense continue that effort.

Electric System Cybersecurity Cybersecurity threats to the electric utility sector have been constantly changing in intensity and sophistication. This sector requires flexibility in combating these threats, as well as more transparent, two-way communication between utility companies and governmental agencies tasked with combating these threats.

Requested Action: Any cybersecurity legislation should include flexibility for NERC, under the guidance of FERC, to develop systemic standards, requirements for two-way communication between utility companies and governmental agencies tasked with combating cyber threats, and appropriate liability protections for utilities targeted in cyberattacks.

Broadband Broadband, both wired and wireless, is an important component of our infrastructure and critical to growing and diversifying our economy. The Huntsville/Madison County Chamber of supports policies that promote greater access to affordable broadband for all our citizens and businesses; educate on the benefits of broadband to our daily lives; encourage new investment, jobs, and technology development and deployment across our community; and, promotes greater competition and choices for businesses and consumers. As the greater Huntsville area works to provide gigabit broadband speeds to businesses and residents, we

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2017 Chamber Issues Book encourage public/private partnerships to execute the most cost-effective deployment options possible.

––––––– SUPPORT FOR FBI AND ATF The FBI has relocated and expanded its Terrorist Explosive Device Analytical Center (TEDAC) to Redstone Arsenal.

Synergies with other federal agencies co-located at Redstone have significantly enhanced the value proposition realized in relocating the TEDAC at Redstone. The FBI has developed significant plans to further grow its campus at Redstone.

National Importance: Further growth of FBI operations at Redstone will strengthen the FBI’s access to intelligence and scientific resources not available at other locations.

Additionally, Redstone Arsenal offers a low-cost, secure environment with an extremely favorable quality of life.

Community Importance: Buildout of the FBI Master Plan will have a significant favorable economic impact on the region.

The FBI estimates that full execution of the plan will bring 5,500 jobs to the region.

Requested Action: Full implementation of the FBI’s Master Plan as quickly as possible.

––––––– SPACE POLICY U.S. Human Space Flight & Exploration Policy The Marshall Space Flight Center (MSFC) continues to provide significant economic impact to the region. Programs managed and supported by MSFC have national significance, and represent the most technically diverse portfolio of any NASA Center, supporting engineering and science. More than 3,600 local jobs are currently supporting the Space Launch System (SLS) and International Space Station (ISS) programs at MSFC. In addition to the development of historically significant space transportation systems, MSFC continues its decades-long legacy in Earth and Space Science research. Continued support of MSFC, its propulsion and science programs, and sustenance of its critical skills and expertise are crucial to the Huntsville area and the nation.

Requested Actions: • Ensure SLS funding at a level to complete development and be in service no later than 2018 with core and upper stages in parallel, ultimately capable of delivering 130MT to low Earth orbit, consistent with the NASA Authorization Act of 2010; • Ensure funding of the SLS Exploration Upper Stage at levels required to support the EM-2 flight in 2021;

• Ensure utilization of MSFC expertise with significant roles in development of long-duration, deep-space habitation, including design and development of advanced life support systems (including oxygen generation and water recovery); • Support continued funding of the ISS to realize full potential with continuation of MSFC ISS Payload Operations; • Support MSFC’s leadership role in design and development of next-generation propulsion systems, in-space transportation systems, and planetary descent/ ascent vehicles; • Sustain MSFC core capabilities by funding the NASA Cross Agency Support line item; • Support and fund MSFC’s leadership role in design and development of nuclear-thermal propulsion systems and stage for deep-space, long-duration exploration missions; • Support utilization of MSFC engineering and management expertise by commercial interests in their development of liquid and solid rocket propulsion systems, engines and motors, ensuring the industry has vibrant and competitive suppliers; • Maintain and enhance MSFC’s critically important roles in Earth, Space and Planetary Science research and applications and missions, such as Europa Clipper and lander; • Support robust funding for NASA’s SERVIR and SPoRT Earth Science programs, providing data for agriculture and disaster mitigation; • Support continued funding for operation of NASA’s Fermi and Chandra Observatories, as well as for research and analysis utilizing these national assets; • Support funding for the Imaging X-Ray Polarimetry Explorer, IXPE, chosen to observe black holes, neutron stars and pulsars; • Support full funding for the Solar Probe Plus mission.

• Support the development of new propulsion systems and local launch system development to reduce national dependence on foreign systems and protect the national industrial base.

––––––– MISSILES, SPACE AND MISSILE DEFENSE AND HYPERSONIC WEAPONS America requires a robust space and air/missile defense architecture composed of highly integrated, sophisticated capabilities that are networked and integrated from Earth to space. Systems include: Space-based Sensors/ Communications, Ground-based Ballistic Missile Defenses (BMD), Ground-based Air Defenses, and Counter-Rocket, Artillery and Mortar (C-RAM) defenses. As potential

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2017 Chamber Issues Book adversaries improve their strategic strike capabilities, both qualitatively and quantitatively, the nation requires a combination of defensive and offensive capabilities.

Continued investment in hypersonic weapons development will provide the nation with a complementary capability to our air/missile defenses and complicate an adversary’s concepts for employing their strategic strike systems. The Huntsville aerospace and defense industry provides the core of the intellectual, technical and production capabilities necessary to meet our nation’s needs today and well into the future. Combat experience over the past decade – combined with rapidly evolving threats – reinforce the need for a fully integrated space and air/missile defense architecture that is responsive, resilient, and lethal against current and future enemy threats. Supporting our National Defense, and interests at home and overseas, requires a strong space, air/missile defense posture, and prompt strike capability.

Meeting these obligations requires a strong aerospace and defense industry that is agile, robust, and visionary. Space, Air and Missile Defense Mission Areas include: Homeland Defense/Strategic Defense; Theater De-fense; Tactical Defense.

undertaken.

Requested Actions: ■ Support robust funding for the program in order to continue critical upgrade and modernization efforts.

■ Support funding for additional GBIs and advocate for a third GMD interceptor site in the U.S. to help meet advancing threats to the homeland.

e Missile Defense Engineering Team – Industry (MET-I) National Impact: Private industry has teamed together to support the U.S. Missile Defense Agency (MDA) in its evolution of the Ballistic Missile Defense System (BMDS) to keep pace with the missile threat to our homeland, deployed forces, and allies. The industry Missile Defense Engineering Team does this through sophisticated modeling and simulation, system engineering, and technical evaluations and assessments for MDA, its various programs, and associated tests. The Missile Defense Engineering Team is designed to provide independent technical support outside the purview of any particular program element of the BMDS.

Homeland Defense/Strategic Defense

Community Impact: Significant National Team work share is done in the North Alabama area across several major and small business employers, supporting about 200 employees.

e Ground-based Midcourse Defense (GMD) Program

Requested Action: Support the President’s FY18 Budget Request for MDA National Team funding.

National Impact: GMD is the only system capable of defending the U.S. homeland against a long range ballistic missile attack. Due to the growing threat, the Department of Defense has committed to a total of 44 Ground Based Interceptors by the end of FY2017. GMD is defending the nation 24/7/365, and is a critical element of the Missile Defense Agency’s (MDA) layered missile defense architecture. The GMD system must meet the advancing threats to the U.S. homeland. The Ballistic Missile Defense System (BMDS) must remain on schedule to keep up with growing missile threats. This includes continued progress in the development of the Redesigned Kill Vehicle and the technology supporting the future Multi-Object Kill Vehicle.

The GMD system – along with Ground-based Interceptors (GBIs) sensor network, and global command and control – provides the President and the Combatant Commanders (COCOMs) the only operational capability to intercept and destroy long-range ballistic missiles launched to attack the United States. Given growing ballistic missile proliferation, especially from Iran and North Korea, strong consideration should be given to a third GMD interceptor site in the U.S. Community Impact: GMD supports more than 3,000 government and industry jobs in the Huntsville area, which is the main center for management and technical oversight of the system. Without adequate funding, the Huntsville area is vulnerable to losing a knowledge base of extremely highlyskilled workers who support what has been called one of the most technically challenging efforts the government has ever

e Multi-Object Kill Vehicle (MOKV) National Impact: A next-generation improvement to the capability of GMD is the Multi-object Kill Vehicle (MOKV) program. The MOKV payload is capable of destroying several objects in a target cluster, mitigating the need to identify and kill a single lethal object. This is strongly needed to address the growing number and complexity of long-range ballistic missile threats to the U.S. homeland. MDA completed MOKV concept definition studies with industry in early FY2016 and anticipates subsequent technology risk reduction, a proof of concept prototype demonstration in FY2020, and fielding by FY2025.

Community Impact: The MOKV program holds promise of a substantial number of Government and industry jobs in the North Alabama area, including program management, engineering, and manufacturing.

Requested Actions: ■ Support full funding of MOKV in the current and FY18 budgets on the path established by MDA. ■ Be vigilant against any efforts to undercut the program.

e Long Range Discrimination Radar (LRDR) National Impact: Due to an evolved threat, the Missile Defense Agency (MDA) is looking to quickly procure and field a land-based Long Range Discrimination Radar

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2017 Chamber Issues Book (LRDR), with deployment planned in 2020 in Clear, Alaska.

LRDR will provide a robust, cost effective discrimination capability to the Ballistic Missile Defense System (BMDS) to support the defense of the Homeland: a persistent 24/7/365 midcourse autonomous acquisition, precision tracking, and discrimination in the BMDS Pacific architecture to counter evolving threats in the Pacific Region. LRDR will help create a BMDS architecture more capable of discriminating and killing re-entry vehicles (lethal objects) with a high degree of confidence, ultimately improving warfighter shot doctrine and preserving inventory. The program scope includes facilities construction, radar development, installation, initial operations, and sustainment. MDA is taking a long-term view of LRDR, with plans for LRDR to be operationally deployed for the next 50-60 years.

Community Impact: Positive impact to Huntsville through the creation of new jobs in Modeling and Simulation, Algorithm Development, Software, and Hardware.

Requested Action: Fully fund the FY18 President’s budget level in RDT&E, Defense-wide for development of the LRDR.

Hypersonic Systems e Conventional Prompt Strike Capability National Impact: In the face of China and Russia’s development of hypersonic missile technology, Congress is looking to the Department of Defense to accelerate the Conventional Prompt Strike (CPS) hypersonic technology development program to potentially permit a limited deployment within the next decade. China completed its sixth flight test in November 2015, while Russia is believed to have conducted four flight tests of its Hypersonic Glide Vehicle from 2011-2015. The United States, on the other hand, has had limited success. The Air Force Hypersonic Test Vehicle-2 (HTV-2) glide body vehicle was unsuccessful in two attempts. The Army had one successful flight of its Advanced Hypersonic Weapon (AHW) technology in 2011 that was followed by an unsuccessful launch (the booster, not the hypersonic vehicle) in 2014. The FY2016 Budget enacted called for an appropriation of $88.8M ($10M over the requested $78.8). The NDAA requires that OSD report to Congress by September 30, 2020 on the need for a Milestone A decision for at least one CPGS weapon system.

OSD continues down a path for the transition of the Army’s AHW technology to support the Navy’s development for a 2017 Navy led flight test. This technology represents the next technological jump in Missile Technology, both for the offense and defense. Although the program is tens of millions of dollars in the Technology Development (TD) phase, the probability of a need for Limited Operational Capacity in the 2020s remains high.

Community Impact: Both the U.S. Army Space and Missile Defense Command (SMDC) and the Army’s Aviation and Missile Research, Development and Engineering Center (AMRDEC) have been instrumental in the development

and testing of the AHW concept. The Army CPS program is being led by SMDC and supported by AMRDEC. Local industry partners and Tennessee Valley partners have made significant contributions to the AHW concept.

Requested Actions: ■ Continue to support increased funding necessary for the Navy flight test of the AHW concept and Army development for a future Army flight test.

■ To ensure there is an opportunity for a viable landbased Limited Operational Capability (LOC), if needed in the 2020s, we should pursue development of the land, air launch and sea based concepts.

■ We should add funding and language that requires the Army to conduct a Flight Test 3 (SMDC AHW) in parallel with Navy testing in 2017 to give the Nation a land-based or air launch option immediately, if needed.

The Navy-deployed version will not be available until after deployment of the Virginia payload module, most likely in the 2030 timeframe. A land-based deployment of the Navy class vehicle will have limited deployment capabilities and effectiveness in an LOC role.

e Defense against Hypersonics National Impact: As adversaries successfully demonstrate hypersonic missile capabilities, the United States must develop defensive measures to counter. In recent years, China and Russia have demonstrated successful testing which could lead to an operational offensive capability soon.

Hypersonic weapons pose two challenges to U.S. defensive systems: they travel at speeds in excess of 7500 mph, and fly non-ballistic flight paths while maneuvering.

Therefore, our current defensive systems need to be assessed against that threat. Congress in Sec. 1687 of the FY17 NDAA designates the MDA Director as the Executive Agent for Hypersonic Defense, and the law requires a Program of Record (POR) be established NLT 9/30/17.

Community Impact: SMDC, AMRDEC, NASA, and MDA have been supporting technologies associated with hypersonic flight. Current defensive systems, Patriot, THAAD, GMD, and Navy Aegis are being supported by local industry partners across the Tennessee Valley. An MDA Request for Information (RFI) to industry seeking concepts and solutions to this issue has a response date of 24 Feb 17.

Requested Actions: A holistic approach to the development of hypersonic flight must be undertaken. Offensive and defensive development must be undertaken simultaneously if we are to be able to solve the technical issues that remain.

Therefore, Congress must continue to support a dual path development of the U.S. offensive capability, by transitioning the successful Army program, Advanced Hypersonic Weapon program to the Navy, and continue the AHW program in case an earlier Operational capability is needed. Congress should support MDA’s requirement to stand up a Program of Record NLT 9/30/17 and fund it in the FY 18 Authorization and Appropriations Acts.

2017 Chamber Issues Book

Theater Defense e Patriot Air & Missile Defense International & Domestic Programs National Impact: Patriot is the world’s most successful and effective air and missile defense capability, and is employed

by U.S. forces and 13 allied military partners. More than 50 percent of the total U.S. Patriot force is forward deployed, performing real-world missions in support of our warfighters and allies. Production leverages 2,400 suppliers nationwide who employ thousands of Americans. Additionally, the sustainment of the fielded domestic and international Patriot fleet involves more than 5,000 government and prime contractor jobs nationally including Huntsville and Redstone Arsenal, AL; Letterkenny Army Depot, PA; Fort Sill, OK; and others. In 2015 alone, the value of potential Patriot sales and sustainment contracts exceeded $3.61B. U.S. Government estimates show that Patriot, in its continuously evolving configuration, will be fielded in the U.S. combat force beyond 2040. The Patriot system is extremely effective against present and emerging threats with growth capacity enabling assured performance for many decades to come. The system employs every fielded and emerging version of the Patriot Missile to include PAC-3 and PAC-3 Missile Segment Enhancement (MSE) missiles as well as the combat-proven Patriot Guidance Enhanced Missile (GEM-T) – allowing the system to deploy a more affordable missile mix, fully coalition compatible and matched to the emerging spectrum of threats.

Community Impact: Huntsville, Alabama and Redstone Arsenal are Patriot’s birthplace and home. Approximately 1,200 civilian and government jobs in the Huntsville area are critical to the Patriot program. All Patriot program actions for the U.S. Military and foreign military sales are processed through USG offices on Redstone Arsenal.

Alabama companies such as Advanced Optical Systems, Quadrus Corporation, Teledyne Brown Engineering, General Dynamics Ordnance, Lockheed Martin, Boeing, and Maximum Technology Corporation are all partners to Raytheon in building and supporting Patriot. USGindependent Patriot support contractors also include KBRwyle, Torch Technologies, INTUITIVE, Delta Research, and other large and small businesses.

Requested Actions: Support full funding of the Army’s Patriot Improvement and Modifications efforts in accordance with the President’s 2018 Budget Request to maintain Patriot’s edge to defeat new and emerging threats. Critical to the deployment of the highly capable PAC-3 MSE interceptor in 2018 will be the upgrades and modifications to the Patriot ground equipment (radars, C2, communications, and software). Future initiatives to invest in Lower Tier Radar modernization introduction of Gallium Nitride (GaN) technology and Active Electronic Scan Array (AESA) will significantly benefit Patriot within the Army’s future Integrated Battle Command System IAMD architecture. Equally critical will be investments and decisions to retain Patriot’s appeal for continued foreign

page 8 military interoperability, cost sharing and development of new foreign partner customers.

e Terminal High Altitude Area Defense (THAAD) National Impact: THAAD is a key element of the United States Ballistic Missile Defense System (BMDS). THAAD is the only system in the world capable of intercepting short thru medium range ballistic missiles in both the endo- and exoatmospheres. THAAD is interoperable with the other joint BMDS components, defends large areas, and uses “Hit-toKill” technology to destroy Weapons of Mass Destruction (WMD) payloads. THAAD is air-transportable and tactically mobile to provide warfighters with the flexibility to adapt to changing threats. THAAD’s high firepower (up to 72 ready rounds), exceptional radar, and superb battle manager provide true capability to defend against mass raids. The THAAD program has a 100 percent mission success rate in 14 complex developmental and operational flight tests since 2005, including 12 for 12 successful intercepts. THAAD’s unique ballistic missile defense capabilities and demonstrated success continue to increase U.S. and international demand for THAAD. In FY13, the United States Government (USG) reduced the THAAD program from nine to six batteries, for DoD budgetary reasons. The U.S. Army maintains a 9 THAAD Battery requirement in order to support current Combatant Command Operational Requirements. Based on these requirements for THAAD capability, the Missile Defense Agency (MDA) and U.S. Army have agreed to procure a 7th THAAD battery and are working on plans to acquire additional batteries. The U.S. Army has activated the first five THAAD batteries, and the sixth battery is scheduled to be activated in the next year. In the spring of 2013, the U.S. Army executed the first operational deployment of a THAAD battery to counter North Korean aggression in the Pacific region. A THAAD battery remains operationally deployed today, defending U.S. forces and the people of Guam against ballistic missile threats and enhancing regional security. In 2012, the United Arab Emirates (UAE) became the first THAAD Foreign Military Sales (FMS) customer.

Deliveries of the UAE equipment have already begun, which will include two THAAD batteries and 192 interceptors.

Congress has been notified of Qatar’s interest in procuring the THAAD system, and there is considerable interest in THAAD from other countries in the Middle East, Asia Pacific, and European regions. In FY17, the MDA plans to start risk reduction tasks for the “THAAD Follow-on”. THAAD FollowOn will focus on incremental capability improvements to the proven THAAD System in order to stay ahead of emerging regional missile threats.

Community Impact: This program provides more than 450 government and industry jobs in the Huntsville area.

Requested Actions: Support the President’s FY18 Budget Request for THAAD. Support funding for THAAD Follow-On to provide enhanced capabilities to the warfighter and sustain critical engineering jobs in the Huntsville area. Advocate for additional THAAD International sales in support of United States Cooperative Defense Initiatives.

2017 Chamber Issues Book e Integrated Air & Missile Defense (IAMD) Mission Command National Impact: Integrated Air and Missile Defense is a command and control (mission command) solution for the Combatant Commanders and supporting Services. It is a commander-centric capability that will integrate current and future air and missile defense weapons and systems.

Commanders will be able to use any sensor and any weapon to achieve mission objectives in a true, open architecture environment that will increase our opportunities to engage targets, and provide improved protection for our nation and our forward-deployed military forces. IAMD addresses known deficiencies in air and missile defense systems for protecting friendly forces, providing situational awareness and controlling our air/missile defense Soldiers. IAMD programs, such as Missile Defense Agency’s (MDA) Command and Control, Battle Management and Communications (C2BMC) System, and the Army’s Integrated Battle Command System (IBCS) represent major evolutions in software and hardware development and are foundational for future integrated air and missile defense systems.

Community Impact: With the government and industry program offices located in Huntsville, these programs support well over 1,000 government and industry jobs in the Huntsville area. Labor and/or parts for one of the programs are provided by 220 subcontractors/suppliers, of which 110 (50 percent) are small businesses.

Requested Actions: ■ Continue to advocate for full and predictable funding for the IAMD programs.

■ Sustain Congressional oversight to allow continued development and fielding.

Tactical Systems e High Energy Laser Development National Impact: Difficult challenges are faced by warfighters in all aspects of their mission. Ground forces must have weapons that offer precision, controllability, predictability, and repeatability to meet the threats of today and the future. Development and fielding of the Army’s High Energy Laser Tactical Vehicle Demonstrator (HEL TVD) being led by USASMDC/ARSTRAT, will offer attributes that will revolutionize tactical battlefield operations. A fielded HEL TVD will consist of a ruggedized and supportable solid state, high energy laser and subsystems installed on a tactical military vehicle capable of providing area joint force protection to forward operating bases, naval installations, air bases, and other facilities. One of the subsystems – a mature and ruggedized Beam Control System (BCS) – will be capable of providing the pointing accuracy necessary for a laser to provide force protection capabilities against rockets, artillery, mortars, unmanned aircraft systems, some cruise missiles, as well as stand-off negation of some types of improvised explosive devices. The capabilities of the 10 kW laser system

page 9 in the Army’s High Energy Laser Mobile Test Truck (HELMTT) was first demonstrated in late 2013 at White Sands Missile Range (WSMR) in New Mexico. Data collections continued through 2016 with HELMTT is risk reduction for the HEL TVD. High Energy Laser propagation data was collected by the HELMTT during 2014 in maritime conditions, successfully targeting a variety of aerial targets at Eglin Air Force Base in Florida. In 2016, the HELMTT successfully participated in the Fires Center of Excellence-sponsored Maneuver Fires Integrated Experiment (MFIX 2016) at Ft Sill, OK – destroying several small, unmanned aerial systems and ground targets.

In 2017, the HELMTT will be upgraded with a 50kW-class laser as additional risk reduction for HEL TVD with additional data collections and demonstrations are planned for 2018.

The design and development of the HEL TVD will begin in 2017. A full system demonstration against rockets, artillery, mortars, and unmanned aircraft systems will be in 2022.

Community Impact: Industry and government agencies in the Northern Alabama area continue to develop, verify capabilities, and eventually field key components of USASMDC/ARSTRAT’s high energy laser efforts. As the technology matures further, economic benefits derived from laser development will be realized in the local community.

Requested Action: Fully support the Army’s funding request for laser development so a capability can be fielded in the near term. The first transition of technology will be to the Indirect Fire Protection Capability Increment 2-Intercept (IFPC 2-I) Program.

e Countering Enemy Indirect Fires, Unmanned Aerial Systems, and Cruise Missiles National Impact: As U.S. and coalition forces withdraw from active combat operations in Afghanistan and turn their focus to training and supporting indigenous forces in support of Counter-ISIL operations in Iraq, the threat of indirect fires remains. The Army has improved upon capabilities that were successful in Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF). The Army’s Counter Rocket, Artillery and Mortar (C-RAM) legacy program provides this combat proven capability to our forward deployed forces.

C-RAM systems are also being fielded to units in CONUS. This will ensure that U.S. Army units are trained to provide protection from indirect fires and will be ready to deploy as necessary to protect vulnerable forward-staging bases and assembly areas during contingency operations.

Further, the Indirect Fire Protection Capability Increment 2-Intercept (IFPC 2-I) is under development and is managed at Redstone Arsenal. IFPC 2-I builds upon the rapid C-RAM acquisition capability and provides additional protection against a broader range of rocket, artillery, and mortar (RAM) threats, Unmanned Aerial Systems (UAS), and Cruise Missiles (CM). A block acquisition approach is currently underway to develop this capability. The Block 1 System consists of an existing interceptor (AIM-9X Block II), an existing sensor (Sentinel A3), and development of Technical Fire Control and a Multi-Mission Launcher (MML) to support

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2017 Chamber Issues Book the counter UAS and CM missions. Over the next several years, IFPC Inc 2-I will evolve the Block 1 capability to include an initial RAM capability. The Block 2 System, a separate acquisition program, will develop interceptors (kinetic or directed energy) to support the full mission requirements, specifically target service rate and magazine depth. The IFPC 2-I System will use the Army Integrated Air and Missile Defense (IAMD) Command and Control (C2) open systems architecture. The IAMD open systems architecture includes multiple sensors which have the capability to provide target track data through the IAMD Engagement Operations Cell (EOC). The IFPC 2-I system will be transportable by Army common mobile platforms. The prototype MML is currently under development by the Army’s Aviation and Missile Research, Development and Engineering Center (AMRDEC) at Redstone Arsenal. The IFPC 2-I program will enter the Engineering Manufacturing Development phase in FY17 with Initial Operational Capability projected in FY20.

Community Impact: Since its establishment in 2005, the C-RAM program has positively impacted the North Alabama area, increasing the number of highly skilled jobs and technology in the region and providing a significant economic impact. The systems, electrical, and software engineers as well as analysts and logistician positions associated with this program will increase as the program matures and systems are fielded to Army units in CONUS. The C-RAM program employs more than 670 government and contractor personnel in North Alabama. Similarly, the IFPC 2-I program supports approximately 500 government and industry jobs in North Alabama.

Requested Actions: ■ Fully support the Army's requests to protect our troops and installations from RAM, UAS, and CM threats.

■ Support the continued research, development and procurement efforts to improve the C-RAM and IFPC 2-I programs.

e Small Satellite and Small Launch Vehicle The operational use of nanosatellites has transformed into a much sought after capability by both the U.S. Army and NASA. The U.S. Space and Missile Defense Command/Army Forces Strategic Command (USASMDC/ARSTRAT) has continued to demonstrate assured communications capabilities through three additional launches of the SMDC Nanosatellite Program (SNaP) this past year. These launches were done as a part of a Joint Capabilities Technology Demonstration Program, performed in conjunction with the U.S. Southern Command, with focus on voice and data collection beyond line of sight. In addition, SMDC, through another JCTD, is planning on the launch of an imaging nanosatellite, Kestrel Eye, in the 2017 timeframe. Kestrel Eye will demonstrate the ability to provide faster, more responsive imagery support to the warfighter on the ground in austere environments.

Having a constellation of both communications and imaging nanosatellites, quickly deployed in a targeted low Earth orbit provides commanders on the ground with a significantly

improved mission command capability. NASA has a need for nanosatellite launch for university and scientific research payloads. In late 2015, NASA awarded seven Space Act Agreements to develop technologies related to small launch systems. In FY16, NASA’s Space Transportation Mission Directorate was funded to develop a nano-launch capability as a part of its Flight Opportunities Program.

In order to benefit from nanosatellite capabilities, a focused effort to develop a Small Launch Vehicle (SLV) is vital.

Currently, virtually every nanosatellite launch is constrained by availability of rides from larger, more expensive launch systems in the $50M/launch range. NASA’s Marshall Space Flight Center (MSFC) has taken the lead to develop the concept for SLV that would reduce cost of launch into the $30-60K/kg range for 3U to 50kg class satellites. The ability to achieve this capability is critical to the U.S. Army’s ability to be more responsive to the warfighter and NASA’s ability to move forward in space exploration.

National Impact: The responsive, targeted use of nanosatellites for both the U.S. Army and NASA fundamentally shifts the paradigm of centrally controlled, strategic satellites to lower cost, dedicated capabilities for both the soldier on the ground, and for space exploration.

Community Impact: The SMDC/NASA MSFC currently employs approximately 100 Huntsville area contractors and Government agency employees working in this area.

Continued support and growth in this area will help Huntsville/ Madison County be known as a national focal point in the field of nanosatellites and small launch vehicle capability, posturing the area for continued and sustained growth.

Requested Action: Review and support Army and NASA budgets for the continued development of low cost communications and imaging nanosatellites and NASA’s small launch vehicle technology development efforts.

––––––– AVIATION S&T Army Aviators executed more than seven million flight hours in multiple theaters of operation performing critical missions for combat commanders in the last 13 years. Army Aviation is recognized as an indispensable capability across the spectrum of warfare, from major combat operations to Homeland Defense. It enjoys an unparalleled reputation world-wide due to courageous deeds of crews from Medical evacuation (MEDEVAC) of the wounded to close combat support of Soldiers, day or night, in the toughest and most remote terrain on Earth. Army Aviation is the decisive factor that ground commanders not only demand, but rely upon to provide unmatched speed, mobility, and flexibility.

Thirteen years of increased usage has shortened aircraft lifespans and increased support costs, yet no new combat helicopter has entered service in nearly 30 years, and

2017 Chamber Issues Book all three active production lines are scheduled to shut down within 15 years. Working with the Aviation Materiel Enterprise, including industry partners, Program Executive Office Aviation (PEOAVN) is procuring replacement aircraft for those lost in combat and modernizing the current existing platforms, while supporting the warfighter on the ground around the world. Simultaneously, it is endeavoring to stay ahead of evolving requirements to transform and meet the Soldier’s needs to fight terrorism, perform peace keeping missions, or fight a comparable foe, within a fiscally constrained environment. Reduced budgets, exacerbated by the Budget Control Act, have reduced Army Aviation’s total obligation authority for modernization and acquisition by more than $3B per year through FY19. Due to an uncertain international security environment, we must act deliberately and rapidly to meet Army and Aviation requirements.

Our U.S. Army aviation fleet will continue to be streamlined as U.S. budget sequestration increases pressure to reduce costs. While there was investment in new technologies following the Vietnam War and the Gulf wars brought an increase in digitization, the Army’s budget for science and technology is now at its lowest ebb. If new technology is expected to be fielded by 2030, a major development effort would have to begin this year. It is more important than ever to invest today in the science and technology required to develop the future fleet.

The Army’s number one modernization program is development of the Improved Turbine Engine (ITE). ITE is the next generation engine for BLACK HAWK and Apache helicopters and is the baseline engine to reduce risk in a future light helicopter. The ITE brings increased fuel efficiency, range, and payload with decreased maintenance actions, and will feed into developing new technology for our fleets to support expeditionary operations.

Future Vertical Lift (FVL) will produce our next generation of vertical lift aircraft; it is critical that we support the Joint Multi-Role (JMR) program to ensure mature technologies feed into capabilities of our future fleet. FVL will maximize use of common technology and parts to minimize training, logistics, and acquisition costs. It will leverage Joint Common Architecture and modular mission equipment to reduce modification and modernization time and costs while enabling technology insertion. The JMR Technology Demonstration (JMR-TD) is the primary Science and Technology initiative that will inform FVL. JMR is well under way and has received funding through FY19 necessary to execute the next milestone for an air vehicle demonstration and flight tests.

The Army’s future tactical unmanned aerial system fleet will need to support complex operations facing sophisticated threats. Revolutionary new configurations and capabilities are needed to operate effectively and survive on the future

page 11 battlefield. The Next Generation Tactical Unmanned Aerial System Technology Demonstrator Science and Technology Program (NGTUAS TD) will mature technologies and inform procurement decisions that will enable TUAS to operate congruently with the future aviation fleet with a wide spectrum of missions. The NGTUAS S&T program helps develop and validate future operational concepts; identifies, matures, and demonstrates critical technologies that enable those concepts; and develops an industrial base that can deliver the systems necessary for future operations.

An Aviation Compound Test Bed is required to address the capability gap in high speed (beyond 170 knots) single main rotor compound flight test. Understanding and operating in this flight regime and configuration is crucial to developing future rotary wing aircraft and informing decisions to upgrade the current fleet. A single, main rotor compound test bed aircraft, which is not being developed in the JMRTD program, is essential to demonstrate the complex flight control laws, aerodynamic efficiencies and limitations, and refinement of current performance models in order to rapidly transition emerging propulsion, drive systems, and drag reduction technologies to the Soldier.

The complexity of aviation problems is extremely challenging, and demands the full attention and cooperation of senior leaders throughout the Army, DoD, and Congress. Solutions are equally complex and interdependent – we do not have the luxury of picking and choosing partial solutions which increase risk or ignore fiscal constraints. Your continued leadership in support of solving Total Army challenges has never been more necessary or essential.

National Impact: The Army’s ability to apply Aviation power is paramount in the National Defense Strategy. The ability to design and integrate the latest technological advancements not only increases the Army’s combat power, but also maintains our Nation’s position of leadership in this complex scientific area.

Community Impact: Alabama is the epicenter of Army Aviation. The collocation of the PEOAVN, the Redstone Test Center (RTC), the Aviation and Missile Research, Development, and Engineering Center (AMRDEC), and the Aviation and Missile Command (AMCOM) at Redstone Arsenal allows for the focused application of resources to maintain leadership in the Aviation arena. The full lifecycle of Army Aviation assets is managed at Redstone Arsenal.

These organizations and the supporting industry account for thousands of jobs in northern Alabama.

Requested Action: Increase and support Aviation S&T funding at a level that allows the Army to keep the current fleet technologically relevant as well as invest in future capabilities that maintain the Nation’s position as a leader in Aviation technology and capabilities. Accelerate funding for the

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2017 Chamber Issues Book Next Generation Tactical Unmanned Aerial System Science and Technology Program, leading to the Future Tactical Unmanned Aerial System.

Apache Helicopters The AH-64E Apache is the Army’s newest attack helicopter and the Apache Project Office has completed fielding of five units as of December 2016. The latest unit to be fielded at Fort Hood, Texas was the first to receive the Version 4 technology insertions, which includes UAS interoperability, improved targeting, and increased situational awareness.

The AH-64E Multi-Year production contract is currently in the final phase of coordination, anticipating contract award in the second quarter of FY17. The five-year contract, for up to 450 aircraft, valued at $7.9B, will save the Army an estimated 10 percent over single-year procurements. The multi-year contract strategy provides stability through FY2017–FY2021 to the program and industry partners who provide components, while providing aircraft with the latest technology to unit commanders. The Apache has an active Foreign Military Sales (FMS) program, with 15 countries and approximately 500 Apache aircraft across the globe with an additional six countries potentially adding FMS cases in the near future. Current modernization actions include the developmental program of Version 6 technology insertions, which will add Cognitive Decision Aiding, Link 16, Soldier Radio Waveform, Tactical Air Navigation System (TACAN), Modernized Day Side Assembly, and Cyber Security. These advanced tools will provide commanders greater situational awareness, lethality, and flexibility across the battlefield.

National Impact: The AH-64E brings substantially improved operational capability to the commander. The Apache Multiyear contract will save hundreds of millions of dollars across the life of the contract, ensuring program stability and providing predictability for the Apache industry team.

Community Impact: All of the life cycle management and many of the support modifications, spares, or services are performed/managed by government and industry partners in Alabama. This directly impacts more than 600 Government and contractor positions.

Requested Action: Continue to support the Army’s Apache Helicopter modernization and procurement objectives, including the Multi-year Contract and Apache modernization.

Utility Helicopters The Utility Helicopters Project Office provides life cycle management for the Army Utility Helicopter and common engine fleets. These products include more than 2135 UH/ HH-60, BLACK HAWKs; the T700 Turbine Engine Fleet (supporting all BLACK HAWKs and Apaches; and 412 UH72A LAKOTA Light Utility Helicopters, the designated rotary

wing trainer for the Army. We are also divesting the Kiowa Warrior, UH-1, and TH-67. The Project Office supports the Navy, Air Force, Coast Guard, Special Operations, Other Government Agencies, and our Allies. Foreign Military Sales (FMS) customers maintain a fleet of more than 1,400 aircraft. The Project Office executes more than $11 Billion dollars in contracts per year. In full production, the Army’s UH/HH-60M helicopter incorporates a digitized cockpit and improved space, weight, power, survivability, and durability.

The UH-60M product line continues to bring revolutionary components and structures to the Army, including battlefield graphics and digital links. When complete, the new UH-60M/ HH-60M BLACK HAWK fleet will comprise 1,375 aircraft, which, when combined with 760 H-60V aircraft, creates a total Army fleet of 2,135 aircraft. For sustainment, the Army recapitalizes 40 UH-60L aircraft each year at Corpus Christi Army Depot (CCAD). The UH-60V is near first flight; when complete, production will utilize the recapitalization program at CCAD. With UH-60V, the Army’s aviation branch will be able to synchronize training and reduce life cycle costs while digitizing the last analog aircraft in the fleet.

National Impact: The BLACK HAWK fleet is the world’s most powerful Utility Helicopter fleet, providing combat, combat support, and combat service support. The force provides commanders with the mobility and agility to act decisively inside the enemy’s decision cycle.

Community Impact: All of the life cycle management and many of the support modifications, spares, or services are performed/managed by government and industry partners in Alabama. This directly impacts more than 500 Government and contractor positions.

Requested Action: Support the Army’s Utility Helicopter modernization and procurement objectives, including the H-60M multi-year production contract and the UH-60V.

Cargo Helicopters The 377th CH-47F was delivered in December 2016. The CH47F aircraft incorporates key reliability and maintainability improvement modifications such as a machined airframe designed to reduce vibration and maintenance, corrosion protection, T55-GA-714A engine, Common Avionics Architecture System (CAAS), enhanced air transportability, Digital Advanced Flight Control System (DAFCS), Extended Range Fuel System II for self-deployment missions, and complies with joint digital connectivity requirements. The aircraft proves itself every day performing a multitude of different missions throughout the world.

The Modernization Product Office continues to focus on the long-term relevance of the Chinook fleet. The CH-47F Block II Chinook upgrade, the first step of a potential multiblock-upgrade strategy, is designed to affordably maintain

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2017 Chamber Issues Book platform relevance through the planned service life of 2060.

The cornerstone of the Block II effort is the introduction of a new rotor blade design, the Advanced Chinook Rotor Blade (ACRB), which will significantly improve the helicopter’s performance in high-hot atmospheric conditions and improve reliability. The ACRB underwent technology demonstration flight testing in Mesa, AZ during December 2016. Block II includes airframe modifications that will increase aircraft maximum gross weight up to 54,000 lbs.

National Impact: The Chinook fleet provides the Army with the only heavy lift combat, combat support, and combat service aviation support.

Community Impact: All of the life cycle management and many of the support modifications, spares, or services are performed/managed by firms in Alabama. This directly impacts more than 450 Government and contractor positions.

Requested Action: Support the Army’s Cargo Helicopter modernization and procurement objectives, moving forward to Block II, supporting the Army’s only 100 year airframe.

Improved Turbine Engine (ITE) The Improved Turbine Engine (ITE), the Army’s next generation engine, will be a new 3,000 shaft horse power (SHP) turbo shaft engine that replaces the T700 family of engines for the BLACK HAWK and Apache fleets, comprising 75 percent of the total Army helicopter fleet. Increasing demands for the aircraft requires advanced turbine engine technology and growth necessary to meet mission requirements.

ITE was initiated through a Materiel Development Decision (MDD) in 2012. Two competitive proposals for the Technology Maturation and Risk Reduction phase were awarded in 4th quarter FY16 as a result of a successful Milestone A decision in June 2016. Milestone B decision is planned for FY18. The ITE provides significantly increased operational capability, fuel efficiency, range, and payload. It will provide critically needed operational improvement in hot conditions at high altitudes, a capability required to operate in a worldwide environment, and posture Army Aviation for the future. The ITE is aligned with the Army’s efforts in Operational Power and Energy Strategy, the DoD Operational Energy Strategy, and the National Defense Strategy.

National Impact: The ITE Program, is Army Aviation’s #1 modernization program. Besides being the next generation engine for BLACK HAWK and Apache helicopters, it is the baseline engine to reduce risk in a future vertical lift aircraft. It will feed the development of new technology for future fleets and allow us to support future expeditionary operations.

Community Impact: All of the development and life cycle management efforts are performed in Alabama.

Requested Action: Continue to support the Army’s ITE program.

Future Vertical Lift Army Aviation’s inherent speed, mobility, lethality, and agility enables our land forces to operate across the entire spectrum of military operations; however, the current Army Aviation fleet lacks the ability to adequately accomplish required missions of future conflicts . Future Vertical Lift (FVL) is one of the Army’s Top Priorities. This Army-led Joint initiative seeks to replace existing DoD vertical lift aircraft with the next generation of vertical lift aircraft to close critical capability gaps and provide “leap ahead” capabilities. FVL aircraft will operate at markedly higher speeds from greater distances; provide greater payload capability; establish enhanced survivability to protect our Soldiers; and deliver improved maintainability, with a 50+ year service life, to make Army Aviation more expeditionary.

The Defense Acquisition Executive signed the FVL Capability Set Three (CS3) Material Development Decision (MDD) Acquisition Decision Memorandum (ADM) on 28 October 2016, which authorized program entry into the Materiel Solution Analysis (MSA) phase and initiation of the Analysis of Alternatives (AoA). This will characterize trade space, risks, and mission interdependencies in the DoD/USCG Aviation portfolio. Building new aircraft from the ground up is part of the strategic effort to harness the best new technologies, allowing platforms to be upgraded as new technologies emerge; integrating systems into a common architecture and reducing costs. Fielding the first variant is expected to begin in the late 2020s. The DoD must invest in the next generation of aircraft to provide leap ahead capabilities and allow future Army forces to overmatch enemies and win.

National Impact: The Department of Defense’s ability to apply Aviation power is paramount in the National Defense Strategy. The ability to design and integrate the technological advancements not only increases the DoD’s combat power but also maintains our Nation’s position of leadership.

Community Impact: Alabama is the epicenter of Army Aviation with the full lifecycle of Army Aviation assets managed at Redstone Arsenal. The collocation of PEO Aviation; Redstone Test Center; the Aviation and Missile Research, Development, and Engineering Center; and the Aviation and Missile Command, and supporting industry account for thousands of jobs.

Requested Action: Increase and support Future Vertical Lift funding to develop and build the next generation aircraft.

FVL is a new start program in FY17. Due to the Continuing Resolution in FY17, if FVL is not funded, the Analysis of Alternatives will be delayed – further delaying Capability Development Document finalization, Milestone A decision, and subsequent Technology Maturation and Risk Reduction phase contract awards.

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Fixed Wing Aircraft The Fixed Wing Project Office is the Army Acquisition Executive to centrally manage the Army’s fleet of manned fixed-wing aircraft. The fleet consists of more than 300 aircraft comprised of four missions, 11 designs, and 28 series deployed to all 50 states and 12 countries. All Army fixed-wing aircraft are commercial derivative aircraft and are divided into three categories: Special Electronic Mission Aircraft (intelligence, surveillance, and reconnaissance aircraft), Transport Aircraft, and Mission Support Aircraft.

The Army has an ongoing requirement for an organic FixedWing Utility aircraft (FUA) to perform Operational Support Airlift (OSA) missions to provide Army Forces Commanders flexibility in meeting time-sensitive movements of key personnel and equipment. The FUA is a commercial derivative/ non-developmental item (NDI) and a replacement platform for a range-limited fleet (C-12 and C-26 transport aircraft) that is approaching the end of its economic useful life (25–35 years old). The FUA will provide improved passenger and payload capability, coupled with greater unrefueled range.

The current procurement requirement is 92 aircraft.

National Impact: The Fixed-Wing Utility Aircraft will enable the Army to replace attritted or retired OSA aircraft with a more technologically advanced aircraft to meet commanders’ needs in current and future operations. The FUA will reduce the amount of resources needed to train pilots and sustain.

Aircraft. Contractors such as King Aerospace, Northrop Grumman Technical Services, Gulfstream, L3, M7, and Beechcraft could potentially work on the FUA program.

Community Impact: The Fixed-Wing Utility Aircraft fleet will include training aircraft based at Ft. Rucker, AL. Program life cycle management is accomplished at Redstone Arsenal.

Requested Action: Continue to support the funding efforts to replace aging airframes and standardize the Army’s Operational Airlift fleet; also, request continued support for the funding of Intelligence, Surveillance, and Reconnaissance aircraft programs of record.

Unmanned Aircraft Systems (UAS) The Army’s Project Management Office for Unmanned Aircraft Systems (PM UAS) is made up of roughly 900 Soldiers, DA Civilians, and Contractors providing our Nation and its allies with world-class, interoperable unmanned aircraft systems and integrated payloads. The Army’s UAS fleet, comprised of small, medium, and large tactical airframes, has flown more than 2.2 million flight hours in direct support of combat operations. Unmanned aircraft support has become an increasingly integral instrument in modern warfare. Army UAS perform myriad functions including: Intelligence, Surveillance, and Reconnaissance

(ISR); battle damage assessment, around-the-clock lethal and non-lethal operations; convoy protection; and anti-ambush/ anti-Improvised Explosive Device (IED) emplacement.

e Unmanned Aircraft Systems (UAS) Operations in the National Airspace System (NAS) Ground Based Sense and Avoid (GBSAA) Over the past decade, UAS have become an integral part of the U.S. military. However, the inability to comply with the Federal Aviation Agency regulation to “see and avoid” other aircraft (by definition, UAS do not have an onboard pilot) significantly hinders the ability to routinely operate, test, and train UAS in the U.S. National Airspace System (NAS). UAS access to the NAS and, ultimately, to international airspace, is necessary to maintain strategic overwatch through worldwide force protection of our UAS. UAS continues developing and validating alternative technological capabilities to “sense and avoid” in order to comply with regulations.

Army PM UAS’s solution is the Ground Based Sense and Avoid (GBSAA) System that will allow initial access to the NAS. GBSAA uses an incremental block strategy; Block 0 and Block 1 capabilities are fully funded. Block 0 became operational in Spring of 2016, and Block 1 will follow ap-proximately one year later. Block 0 and Block 1 will be operated by contractors to expedite support of UAS testing activities; this will facilitate quicker integration of the UAS into the NAS, increasing and improving warfighter training and testing.

National Impact: The GBSAA System effort will lead to the safe operation of UAS in the NAS and allow safe flights in conjunction with manned airspace operations. The Army’s GBSAA System efforts continue to inform other Service’s SAA work.

Community Impact: This joint effort between the PEO Aviation and the Aviation Engineering Directorate has resulted in the addition of 15 jobs for the organization as well as the outsourcing of another 10-14 support jobs. UAS activities currently have an estimated $15M per year impact on the Northern Alabama economy.

Requested Action: Continue to support the funding efforts to research, develop, acquire, field, and sustain the Army’s Unmanned Aircraft Fleet; while continuing to support future UAS commonality and interoperability advancements

––––––– BIOTECH The United States must continue to make global leadership in the biosciences a priority. Robust federal funding for scientific research is an essential economic driver in biosciences.

Through the work funded by the federal entities including the National Institutes of Health, the Department of Defense, the National Science Foundation, and the Department of Energy, we are seeing rapid advancements in biosciences in the Huntsville-Madison County region.

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2017 Chamber Issues Book Federal funding through these agencies have allowed for innovation and commercialization of technologies, diagnostics, and medical treatments, which in turn lead to better quality of life. The impact is demonstrated in better human health but also through numerous improvements in agriculture, which is key to the sustainability of the population. Beyond the demonstrable benefit to wellbeing, there is tremendous, direct economic impact of federal funding for biosciences in nonprofit research and the growing community of biotechnology and pharmaceuticalbased companies leveraging that research in the area.

The nonprofit research organization, HudsonAlpha Institute for Biotechnology, the companies that reside on the HudsonAlpha Biotech campus, the companies that are in the greater Huntsville area, and the colleges and universities in North Alabama, including the University of Alabama in Huntsville, are all important components of this growing innovation economy. HudsonAlpha and the North Alabama bioscience hub of companies are generating discoveries and applying the results in therapeutics, medical devices and equipment, genomic services, and life science product development. Additionally, HudsonAlpha’s education programs are equipping the next generation of scientists along with creating a genomics-literate society poised to successfully fill the roles of a bioscience-rich job force.

Requested Action: The Chamber strongly supports increased scientific research funding levels for the National Institutes of Health, the Department of Defense, the Department of Energy, and the National Science Foundation, which has direct and indirect economic impact for the HuntsvilleMadison County area. Additionally, the Chamber supports legislation that furthers bioscience innovation and growth in the private sector.

––––––– MISSILE AND SPACE INTELLIGENCE CENTER (MSIC) National Impact: Located at the Richard C. Shelby Center for Missile Intelligence on Redstone Arsenal, MSIC is one of the nation’s premier scientific intelligence organizations. Charged with analyzing and understanding the characteristics and vulnerabilities of foreign threat air defense, missile and space systems, MSIC also addresses the impacts of world-wide emerging technologies on the predicted capabilities of threat weapons, including support of U.S. cyber operations.

MSIC’s efforts are vital elements of the nation’s defense, especially as U.S. and allied defense systems become more complex. Building upon the outstanding scientific and engineering skills and capabilities within the Huntsville

region, MSIC has been a pioneer in the development of innovative solutions to significant national intelligence analysis problems. These in-depth and innovative skills should be leveraged to address additional national priorities such as the rapidly growing cyber and supply chain threats. The MSIC-AMRDEC offense-defense interaction research and analysis program should be sustained and expanded. The program is vital to understanding cyber threat characteristics and the development of knowledge-based responses to mitigate the emerging cyber security and supply chain risk management threats. As worldwide missile and air breathing threats increase in technical capabilities and inventory levels, the threats become more challenging to the U.S. and allied warfighters. MSIC must have the critical human, financial, and physical resources necessary to sustain and expand its mission to support the acquisition community, national policy makers, and the air-sea-land and cyberspace operations of the combatant commands.

Community Impact: Employing about 400 government personnel and about 150 contractors, MSIC will continue to significantly contribute to the nation’s defense. The local economic impact form MSIC – typically air defense, about $100 million a year – will be enhanced by insuring that MSIC funding supports robust analysis of the growing missile, space, and cyber threats.

Requested Action: Increase FY18 MSIC funding over president’s budget request to provide increased support for MSIC intelligence analysis program, including the cyber security Offense–Defense Integration Program.

––––––– EDUCATION Carl D. Perkins Career and Technical Education Act The Carl D. Perkins Career and Technical Education Act is a proven process to help secondary and postsecondary students become high value employees in industry by providing access to federal dollars to offset the cost of Career and Technical Education (CTE) programs.

National Impact: Employers nationwide are reporting a shortage of skilled workers to fill in-demand positions. CTE programs throughout the country are central to overcoming this skills gap. Science, Technology, Engineering and Math (STEM) professions and skilled trades represent the highest demand occupations in the United States, and the age of the workforce is higher than that of other occupations. Unless the supply of students is increased, the inability of the nation to meet workforce demands will drive up costs, reduce productivity, and constrain our global competitiveness.

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2017 Chamber Issues Book Community Impact: The economy of Huntsville-Madison County is diversifying into more advanced manufacturing in support of federal and commercial markets. We have seized remarkable opportunities with Remington, Polaris, and GE Aviation, but we must be able to supply the workforce for these and related projects or risk not only the failure of existing businesses but the cessation of further economic development activity.

Requested Action: We ask that the Perkins Act be reauthorized with a focus on high-growth, high-demand industry.

––––––– WORKFORCE Our economy is supported by a highly innovative, creative, productive, and industrious workforce. To keep the economy vibrant and to continue to create opportunity for workers, we must ensure that new businesses can continue to be launched and existing industry can be expanded. The Huntsville/Madison County Chamber pro-motes workplace policies that will enhance, not inhibit, economic growth and job creation. Recent actions by the National Labor Relations Board, the Department of Labor, and the Presidential Administration would have a direct, negative impact on these efforts.

National Impact: Providing a workplace that supports employee needs, including appropriate compensation, is critical to any company’s long-term success. Therefore, it is important that any collective bargaining process is informative, transparent, and timely for the benefit of both employees and employers. The NLRB “Ambush Election” Rule significantly shortens the time between a union filing a request for an election and the date the election is actually held. Additionally, the decision to overturn the NLRB’s long-standing “joint employer” standard is likely to have a significant impact on companies that rely on staffing agencies and contractors, and the effects may ripple into the world of franchised business.

Huntsville-Madison County serves as a national asset to support the federal missions of Redstone Arsenal, and the corporate presence in Cummings Research Park. As such, established and proven federal contractors are a critical part of successfully fulfilling the missions of Team Redstone.

Community Impact: Communication between employee and employer is critical for employee engagement and successful business operations. Accelerating the union election process deprives employers of their right to communicate with their employees the impacts of unionizing, in turn depriving employees of information they need to make an informed decision. Additionally, the removal of the “joint employer”

standard facilitates unionization efforts, needlessly upends existing law, and undermines a clear cut standard that has increased businesses’ flexibility/competitiveness and created employment opportunities for millions of Americans for 30 years.

Our region has a relatively low cost of living coupled with a high quality of life. Impacts to the Fair Labor Standards Act salary basis test would negatively impact many of our employers, including (but not limited to) those in the construction, hospitality, and nonprofit industries. Forcing employers to reclassify employees from salaried employees to hourly employees will result in a loss of status, benefits, and no increased earnings.

Requested Action: We oppose the NLRB’s “Ambush Election” Rule and the decision to overturn its long-standing “joint employer” standard. We also oppose the administration’s initiative to rewrite FLSA regulations changing who is eligible to earn overtime compensation. Given the critical work that takes place daily on Redstone Arsenal, we oppose efforts to rewrite labor and employment laws in ways that will prevent well-established and proven federal contractors from being able to continue providing the federal government with vital goods and services.

Workforce & Higher Education National Impact: The Huntsville metro area boasts one of the smartest workforces in America today, and the area has a critical mass of highly educated technological capabilities that exist in few places on planet Earth. This talented workforce serves as a national asset to support the federal missions of Redstone Arsenal and the corporate presence in Cummings Research Park, the second largest university-related research park in the United States.

Community Impact: Today, workers with advanced degrees have made Redstone Arsenal a strategically important installation for the U.S. Army, and crucial to the nation’s defense and security. Marshall Space Flight Center is one of NASA’s largest field centers and supports America’s space science and exploration missions. Federal agencies that provide research funds for research universities, such as The University of Alabama in Huntsville and Alabama A&M University, promote advanced workforce development, help advance technologies for the nation, and create spinoff technologies that enhance local job and wealth creation.

Requested Action: Enhance support for federal research activities across a broad spectrum of technological fields, with an emphasis on national defense, biotechnology, cybersecurity, homeland defense, as well as space exploration and science.

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FEDERAL MEETING APPROVAL PROCESS AND LIMITED ROOM AVAILABILITY AT PER DIEM National Impact: Communities across the nation continue to experience a significant decline in attendance at Federal meetings, conferences and trade shows, compared to levels of 2012 and prior. The desire to cut wasteful spending has severely impacted the ability of government employees to attend meetings and conferences, which ultimately results in increased cost to taxpayers. Hotel and convention center attrition clauses drive up the cost per attendee, and economies of scale available at larger symposiums and conferences are more limited.

Community Impact: Government travel and meetings account for the largest market segment in Huntsville-Madison County. The government per diem is the prevailing rate for tens of thousands of room nights annually as well as the base rate upon which all other rates are determined. It has become extremely difficult to secure a sufficient number of rooms at government per diem to meet the demand by individual travelers as well as conference attendees. This limited availability has forced several government meeting planners to look elsewhere when determining conference and symposium locations. Additionally, the current per diem rate is negatively affecting our ability to attract new hotels and even the ability of our existing hotels to provide the services and amenities our guests require.

Requested Action: Support the funding of Federal meetings, conferences and trade shows as well as a streamlined approval process by which federal employees can quickly gain approval to attend. Advocate an increased government per diem rate for Madison County, so government travelers can continue to enjoy the clean, comfortable, and safe accommodations we all demand at an equitable rate for the hotel owner, management, and staff. When planned and executed correctly, government meetings most certainly benefit citizens by making government more effective.

––––––– BRAC An additional round of Base Realignment and Closure (BRAC) may be required to help the services cut unneeded infrastructure. Five previous rounds of BRAC have produced significant base downsizing which has led to significant cost savings.

National Importance: Burdening the services with unneeded infrastructure at a time of declining defense budgets increases the likelihood of a “hollow force” as fewer dollars are available to meet actual needs.

Community Importance: Redstone is well positioned to realize growth as a result of future rounds of BRAC as in previous BRACs. While nothing is guaranteed in the BRAC process, Redstone’s proven track record of successfully handling significant military consolidations and the community’s attractiveness, make the region’s prospects for growth in a BRAC round more likely than losses.

Requested Action: We urge the delegation to remain openminded regarding requests for BRAC from the services.

––––––– MARKET PLACE FAIRNESS ACT The region works hard to attract, retain and grow retail business. We view these efforts as one of our core elements of our economic development strategy. Our efforts have breathed new life into our commercial corridors, are improving our quality of life, creating jobs, and growing the City’s tax base. The Marketplace Fairness Act would not impose any new taxes. It would simply create a level playing field for all retailers. The time for enactment of the Marketplace Fairness Act has arrived. Sales tax fairness will create a level playing field for Huntsville retailers, protect our tax base and bolster our economic development efforts.

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