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From 14-18 July 2007, members of the Canada-United States Inter-Parliamentary Group participated in the 61st Annual Meeting of the Council of State Governments – Southern Legislative Conference (SLC) in Williamsburg, Virginia. This report summarizes the major issues discussed at selected plenary and concurrent sessions. THE 2007 FARM BILL Dr. Will Snell, University of Kentucky · the farm bill is the nation’s most comprehensive piece of legislation that addresses farm programs, food assistance, agricultural trade, the environment, economic development and other issues affecting U.S. farmers and rural communities · the farm bill usually has a duration of five to six years; the 2002 Farm Bill will expire on 30 September 2007 · farmers focus most of their attention on provisions that address farm income and commodity price support, although the farm bill typically addresses other related areas in order to have a broader coalition of support · 2002 Farm Bill titles were: Ø Commodities Ø Conservation Ø Trade Ø Nutrition Ø Credit Ø Rural Development Ø Research Ø Forestry Ø Energy Ø
Miscellaneous · debate about the 2007 Farm Bill will be affected by U.S. budgetary considerations, trade discussions (such as the Doha Round) and disputes (such as those related to cotton and corn), and the current status of the U.S. agricultural economy, which involves consideration of commodity prices, net-farm-income levels, agricultural exports, farm debt-to-equity and debt-to-asset ratios, etc. · funding for farm bills begins with the Congressional Budget Office’s budget baseline, which is a projection of future program costs assuming a continuation of current Farm Bill policies under expected market conditions; higher grain prices anticipated throughout the period have led to a significantly reduced baseline and, consequently, reduced potential funding available for the 2007 Farm Bill · the proposals by the U.S. Department of Agriculture in respect of the 2007 Farm Bill are: Ø maintain the same safety-net structure, with a revenue-based counter-cyclical payment Ø revise marketing loan rates Ø raise some direct payments Ø tighten payment limits Ø increase funding for, but streamline, conservation programs Ø increase funding for bioenergy programs
· the American Farm Bureau supports the 2002 Farm Bill structure in order to provide a “reliable safety net,” which includes a state-level revenue counter-cyclical payment program along with more funding for conservation and renewable energy · the National Farmers Union supports retaining current counter-cyclical payments but advocates adding a dairy supply management plan with both of these elements indexed to production costs; it also supports a farmer-owned renewable energy reserve, more ethanol production, permanent disaster payments and full funding of the Conservation Security Program · the National Corn Growers supports a safety net with a county-level revenue counter-cyclical payment program · the National Wheat Growers supports higher direct payments and target prices while maintaining the marketing loan initiative · the American Farmland Trust supports a revenue-based safety net along with increased funds for conservation programs · the Food and Agricultural Risk Management for the 21st Century Act (FARM 21) – supported by U.S. Senator Lugar and U.S. Representatives Kind, Flake, Crowley and Reichert – would establish risk-management accounts and revenue-insurance products with savings allocated to conservation, nutrition and rural development · farm bill issues being debated in Congress include: Ø payment limitations – it is argued that payment limits are needed in order to address inequities across farms, crops and regions, to help minimize the impact on land prices, and to make funds available for such other needs as conservation, nutrition, energy and rural development; nevertheless, large farms argue that the competitive environment forces them to increase in size in order to experience economics of scale and they believe that a safety-net farm policy is needed in order to protect them when prices fall and the costs of production rise Ø the distribution of payments – for the 2003-2005 fiscal year, the top 1% received 17% of payments (on average, $377,484), the top 10% received 66% of payments (on average, $148,077) and the bottom 80% received 16% of payments (on average, $4,508) Ø safety-net programs – options include basing the safety net on low prices or on national, state or county revenue shortfalls Ø conservation – payments for conservation have political acceptance and are World Trade Organization-compliant Ø rural development – rural areas are becoming more dependent on a strong rural – rather than a strong farm – economy, which highlights the need for funding for economic development and infrastructure Ø renewable energy – the focus includes fund for research and for infrastructure, with an increased emphasis on cellulosic ethanol Ø
nutrition – a focus on nutrition is felt to be
important for broad support, especially in the South which has a greater
dependency on food assistance programs · the Committee on Agriculture of the U.S. House of Representatives will consider the draft 2007 Farm Bill in the week beginning 16 July 2007 · in the U.S. Senate, the “Chairman’s mark” by Senator Harkin, chair of the Committee on Agriculture, Nutrition, and Forestry, has not yet been released; it is expected that the proposal – which may be for six or seven years – will include reduced commodity program spending and increased funding for conservation, renewable fuels and rural development · the Congressional agriculture committees are now chaired by legislators from the Mid-west rather than the South; nevertheless, it is felt that the support of the South is needed in order to pass the 2007 Farm Bill ·
in terms of the future, it is important to
remember that there is still much debate and discussion, and that farm bills
are generally evolutionary rather than revolutionary Representative Rodney Alexander, U.S. House of Representatives · one should expect the 2002 Farm Bill to be extended, at least for a short period of time; since people are playing politics and so much is happening in Washington, an extension is likely · U.S. Secretary of Agriculture Johanns does not want to extend the 2002 Farm Bill, feeling that an extension would indicate to the World Trade Organization that the United States is not willing to compromise · Representative Peterson, who chairs the Committee on Agriculture of the U.S. House of Representatives, is struggling to develop a farm bill that would be passed by the Committee, the House of Representatives and the U.S. Senate, and signed by President Bush · Chairman Peterson is in an odd position, since last year he voted to extend the 2002 Farm Bill; now, as chair, he no longer supports an extension and is likely to propose changes to the 2002 Farm Bill in order to gain the support of some members of the Committee on Agriculture · agriculture is one of the most complicated issues that must be addressed by governments · the U.S. government has used agriculture as a bargaining tool around the world · some believe that, without farm subsidies, there may not be any farmers ·
some believe that support payments should be
abolished and the market should decide the number of farmers in the agriculture
industry Dale Moore, U.S. Department of Agriculture · the process involved in having a farm bill passed by the Committee on Agriculture of the U.S. House of Representatives and then in progressing through the remainder of the legislative process is complex · the arguments for change to the existing system of U.S. agricultural support are powerful, and the politics involved in the drafting of the 2007 Farm Bill are regional · each farm bill is different, since each is drafted in different economic, political, budgetary, trade, etc. environments · each year, Congressional appropriations committees examine agricultural support and funding · during his listening tour, U.S. Secretary of Agriculture Johanns heard that farmers want more equity and predictability · with a variety of challenges – cotton (Brazil), rice (Mexico) and corn (Canada) – piece-by-piece dismantling of U.S. agricultural support is possible; Secretary Johanns wants a farm bill that would help to safeguard the United States against international trade challenges, and the U.S. Department of Agriculture cannot support the 2002 Farm Bill in its current form · in the U.S., there is a need to help agricultural producers better when they are experiencing difficulties; for example, while prices are relatively high at the moment, high prices do not help those in areas affected by drought · Representative Peterson, who chairs the Committee on Agriculture of the U.S. House of Representatives, is walking a very fine line; it will be difficult to draft a farm bill that will be passed by the Committee ·
Chairman Peterson and Senator Harkin, who chairs
the Committee on Agriculture, Nutrition, and Forestry of the U.S. Senate, are
attempting to draft a farm bill that occupies the “middle ground,” given the federal
budgetary situation FEDERAL REAL ID LEGISLATION: FINANCIAL IMPLICATIONS FOR STATES State Representative Jim Guest, Missouri House of Representatives · the desire to be free is a strong and motivating factor, and the fight for freedom is a constant battle · the role of government is to protect freedoms rather than to take them away · the federal REAL ID Act is a frontal assault on the freedoms contained in the Constitution and the Bill of Rights, and violates the Tenth Amendment in respect of state rights · the 9-11 Commission did not specifically recommend a REAL ID Act · the concept of national identification has a long history, and predates the terrorist attacks and the report of the 9-11 Commission · it should be noted that the perpetrators of the 11 September 2001 terrorist attacks had multiple documents denoting identity · one does not need a drivers licence to be a terrorist, and a secure drivers licence will not stop terrorists · according to the U.S. Department of Homeland Security (DHS), there are a number of uses for REAL ID, including: Ø to board federally regulated aircraft Ø to enter federal buildings Ø to enter nuclear power plants Ø
to meet future requirements, which could include
– for example – those related to bank accounts, federal programs, housing and
employment · any future rule-making by the DHS in respect of the official purposes for REAL ID would occur without judicial or legislative oversight · considerations in respect of document retention include: Ø copies of records would be retained for ten years Ø data could be shared or linked to other states Ø
the DHS has proposed global sharing of data · considerations in respect of identity theft and the REAL ID Act include: Ø it would do nothing to stop identity theft Ø it would increase black market activity regarding documentation Ø
it would give Americans a false sense of
security ·
to date, about 26 states have passed legislation
or resolutions to stop REAL ID, and others have committed to taking action State Senator Larry Martin, South Carolina Senate · in June 2007, the South Carolina legislature indicated that the state will not implement the federal REAL ID Act · for the state of South Carolina, the estimated cost of the REAL ID Act is $25-29 million for implementation, and $11 million annually in ongoing costs; nationwide, the estimated cost is $20 billion · there are security concerns related to the REAL ID Act, including: Ø security clearances for Department of Motor Vehicle employees Ø physical security for the storage of documents Ø verification of original documents Ø
loss of state control over the privacy of
residents · the federal government should consider standardized drivers licences ·
the privacy of citizens should not be
compromised HIGH SCHOOL REDESIGN Donna Nola-Ganey, Louisiana Department of Education · in Louisiana, the High School Redesign Commission was appointed in 2004, comprised of educators, business representatives, legislators, parents, students and other agencies · in Louisiana, the plan for high school redesign includes three levels of implementation: Ø Level 1 (all high schools benefit) – standards and curricula alignment; development of new courses; review of graduation requirements; end-of-course tests; extra support for at-risk students; and support for staff Ø Level 2 (targeted programs/pilots) – extra support for students school-wide; funded pilot programs; a focus on rigour; and support for staff Ø
Level 3 (systemic redesign, or lighthouse high
schools) – schools are selected competitively · in Louisiana, it was determined that high school graduates were not prepared for college; 32% of college freshmen enrolled in at least one remedial class, 29% dropped out before their sophomore year and 60% did not graduate from college in six years · in Louisiana, it was determined that high school graduates were not prepared for work; more than 70% of employers could not find qualified workers, 42% of employers could not find workers with basic reading skills, and the workforce deficit has increased since Hurricane Katrina · the High School Redesign Commission developed six recommendations for redesigning high schools in Louisiana: Ø require a fourth year of mathematics for high school graduation, since the highest level of mathematics is a key indicator of college success and jobs require more mathematics Ø implement a more rigorous curriculum that requires students to complete four units of mathematics, science, social studies and english, with an ability for students to opt out after grade 10 with a valid reason and the permission of their parent or guardian Ø strengthen career/technical endorsement Ø modify the graduation index to align better the goals of high school redesign and high school accountability Ø implement online, state-prepared end-of-course tests with three performance levels (fail, pass, high pass) and replace the graduate exit exam with these end-of-course tests Ø invest in dropout prevention and recovery ·
in Louisiana, efforts are directed toward better
preparing students for college and careers, and toward reducing the high school
dropout rate in order to prevent poverty and dependence DUAL ENROLLMENT AND DROPOUT PREVENTION Debra Mills, Center for Occupational Research and Development, Illinois · dual enrollment exists in some form in nearly every state · opportunities to earn college credits in high school have grown dramatically in the last ten years, thereby providing students with a chance to get a “head start” on college · college credits that are earned prior to high school graduation reduce the average time-to-degree and increase the likelihood of graduation; there are, however, concerns about the quality of certain high school teachers who are asked to teach college-level courses and about the extent to which low-income and low-achieving students are unable to benefit from this opportunity · in one survey, while all states reported offering dual credits, 29 states reported the existence of special efforts to reach under-served students with this option; targeted groups could include students who are: schooled at home, low income, racial/ethnic minorities, rural, urban, disabled, low achievers, traditionally not bound for college, incarcerated or first generation · most dual credit opportunities emerged through articulation agreements and involved high school and college curricula that were developed independently; this approach is like trying to join two buildings constructed on different foundations, resulting in inefficiencies and misalignment ·
it is recommended that the high school and
college curricula be developed together, with two or more different levels of
education overlaid
21ST CENTURY LEARNING: SKILLS FOR THE FUTURE Jena Collins, Apple, Inc. · we are living in a changing world, with changing technology, learners, competition and workforces · most teachers in schools today are “digital immigrants” in the sense that they were born before 1980 · at the present time, there is a disconnect between teaching and learning in schools · students today are accustomed to having lots of technology and to having everything now; they have a short attention span, and think that email is used by “old people,” since it is not sufficiently instantaneous for them · teachers should not expect the students of today to sit in a classroom reading from their textbook · ipods should be used as learning tools; for example, there should be podcasts of lectures · the internet is a networking resource; consider, for example, the social relationships that result from Facebook, YouTube and MySpace · students want to learn in new and different ways; they want to be creative, mobile, collaborative, productive, etc., and they want to produce and share what they have learned; they are more interested in making a movie (new) rather than in making a power point presentation (old) · it used to be the case that technology was a tool; now, technology is an environment · when technology is infused into education, student engagement and achievement, as well as teacher retention, increase and school drop-out rates decrease ·
when we teach today as we taught yesterday, we
rob our children of tomorrow THE OUTLOOK FOR ENERGY TO 2030 Ken Cohen, ExxonMobil Corporation · there are three important driving forces in respect of energy: Ø economic development, which is affecting commodity prices Ø energy security Ø
environmental issues · as the price of energy rises, there are global concerns about energy security · there is a need to produce the energy that the world reguires while being mindful of the environmental consequences of that production · most of the world’s energy is provided by traditional fuels (such as crude oil, natural gas and coal) and, despite the tremendous increase in renewable and alternative fuels (such as biomass, biofuels, nuclear, wind and solar), traditional sources of energy will still be important in the next 20 years · growth in the use of renewable and alternative fuels will require technological hurdles to be overcome and infrastructure to be put in place · should be increased the focus on energy efficiency as an alternative fuel · energy use is affected by population growth (the rise in the number of people who are demanding energy), and it is estimated that the world’s demand for energy will increase 40% by 2030; another consideration is the implications of rising incomes for individual ownership of vehicles · there are public concerns about nuclear energy, including in respect of safety, waste disposal and location (“not in my backyard”) · solar energy is somewhat intermittent and very costly with current technology, and geothermal energy is still experimental · hydroelectric energy is not expected to grow significantly as a consequence of such issues as siting · while wind-energy technology is relatively mature, wind energy is site-dependent, unpredictable and intermittent; there are also connectivity issues with the grid · hybrid vehicles are relatively more costly and public acceptance issues continue to exist · considerations in respect of energy policy include: Ø there is a need to produce the energy that the world requires and a need to do so with the smallest possible environmental footprint Ø there is a need to open up domestic supply and to increase access to the energy resource Ø
there is a need to recognize the interdependence
of energy markets, since the United States can diversify its types of energy
but is unlikely to become energy independent
WINNING THE FUTURE Newt Gingrich, Former Speaker of the U.S. House of Representatives · parliamentary systems are dangerous because they centralize power · if one cannot design legislation that will get through the legislative process, it is probably the case that the legislation should not be passed · the political system in the United States has a built-in tension between the legislature and the President (federal)/Governor (state) · there are four rules to remember: Ø doing more of what you are already doing and expecting a different result is insanity Ø you cannot come to a solution by trying to make the problem smaller, but if you make the problem bigger you may begin to get the glimmer of a solution Ø almost every problem in government today is self-inflicted, and real change requires “real” change Ø
you should teach everyone around you to say
“yes, if” rather than “no, because” in order to approach a problem with the
following perspective: “tell me under what circumstances we can get this done” · you should be clear, compelling and simple ·
the focus should be “red, white and blue” rather
than “red versus blue” NEW DEVELOPMENTS IN BIOFUELS Maurice Hladick, Iogen Corporation · cars and light trucks produced in 2007 will remain part of the national vehicle fleet in 2020 and beyond; the projections for 2020 include vastly increased ethanol consumption and there are questions about whether the majority of these vehicles – which are E10 warranted – will be challenged in the fuel environment of the future and about whether existing infrastructure will be sufficient to transport the anticipated volume of cellulosic ethanol · cellulosic ethanol could displace more than 30% of the country’s current petroleum consumption · one billion tons of biomass has a value of about $40 billion, which is approximately the combined value of the corn and soybean industries · in the future, biomass will involve new crops, such as switchgrass, which may have unique challenges and opportunities · there is a strong public policy “push” for cellulosic ethanol for reasons of: Ø energy security Ø reductions in greenhouse gas emissions Ø
the development of new economic opportunities
for agriculture · in real estate, it is location, location, location; for a biorefinery, it is feedstock, feedstock, feedstock · the biorefinery industry needs: Ø a secure and sustainable source of feedstock Ø a limited number of suppliers of feedstock Ø secure knowledge of the agriculture residue, including grower intentions to contract Ø a demonstrated ability by growers to contract extensive acreages of dedicated perennial biomass crops Ø
where applicable, a thorough knowledge of forest
resources (including bankable sustainable yield, the contracting intentions of
forest owners and unresolved environmental issues) · success in Canada and the United States demonstrates grower interest in selling agriculture residue · the biorefinery industry will be attracted to communities with the “best oil field” biomass feedstock equivalent, and communities that focus on feedstock now will be the early winners, attracting biorefinery investors John Ashworth, National Renewable Energy Laboratory · biomass has the following advantages: Ø it is abundant Ø it is renewable Ø it is carbon-neutral Ø it is the only sustainable source of hydrocarbons Ø it can fill the gap between energy demand and petroleum availability in the near term Ø
it can be a renewable source of hydrogen in the
long term · the price of ethanol is tied to the price of gasoline and not to the price of corn · there is a need to transition to cellulosic biomass; cellulosic ethanol will help to meet future demand for biofuels · cellulosic biomass is comprised of: cellulose; hemi-cellulose; lignin; and other components · ethanol is the first of many possible biofuels; others include: Ø biodiesel – transesterified vegetable oils, fats and greases Ø green diesel – vegetable oils, fats and greases converted to diesel by hydroprocessing Ø other fermentation products – butanol, acetates, lactates Ø pyrolysis liquids – low-quality liquid made by thermal processing of biomass Ø synthesis gas – for conversion to methanol, dimethyl ether or mixed alcohols Ø algae-derived fuels – alternative source of triglycerides and carbohydrates Ø
hydrocarbon fuels – from the hydrogenation of
biomass constituents ·
six cellulosic ethanol demonstration projects
have received U.S. Department of Energy co-funding HPV VACCINE MANDATES Dr. Daniel Salmon, Johns Hopkins Bloomberg School of Public Health · states determine their school immunization requirements, and there is wide variability among states in terms of implementation (applicable population, provider of documents, antigens required, etc.); some states provide religious and/or philosophical exemptions, and the implementation of exemptions varies across and within states · the first immunization law, in respect of vaccination for small pox, was enacted in Massachusetts in 1809; the case of Jacobson versus the State of Massachusetts upheld the right of the state to compel vaccination · in the 1960s and 1970s, the extent to which states passed laws requiring school-related vaccinations grew · there is evidence that strict enforcement of laws in respect of vaccinations is important · benefits of school immunization laws include: Ø prevent outbreaks Ø demonstrate public commitment to vaccination Ø
assist in the introduction of new vaccines ·
some parents balance a fear of disease against a
fear that the vaccine might cause harm Karen Mason, Centers for Disease Control and Prevention · immunization is a successful strategy; when a new vaccine is introduced, the incidence of disease decreases significantly and quickly · at present, there are record-high childhood immunization coverage rates, and vaccine-preventable diseases are at or near all-time lows · measles is no longer endemic in the United States or the Western Hemisphere, and rubella has been eliminated in the United States · immunization is one of a limited number of clinical preventive services that saves money as well as lives · for each birth cohort vaccinated: Ø society saves $43.3 billion Ø health care costs are reduced by $9.9 billion¸ Ø 33,000 lives are saved Ø
14 million cases of disease are prevented · courts have upheld school vaccine requirements · all laws providing school vaccine requirements have exemptions of some sort; nevertheless, objections to vaccinations remain, and many public health officials are concerned about exemptions · controversies regarding immunization requirements include: Ø expansion of laws to new vaccines Ø philosophical exemptions Ø
involvement of drug companies in the legislative
process · before changing immunization requirements, some considerations are: Ø availability of the vaccine Ø financing Ø acceptance by parents and providers Ø safety data Ø
feasibility · potential unintended consequences in respect of vaccine requirements include:
Ø broadening of exemptions Ø loss of public support for vaccination and for vaccination requirements Ø erosion of program gains Ø
lack of enforcement · keys to successful implementation of immunization requirements include: Ø parental acceptance Ø provider support and delivery Ø
mechanisms for enforcement SEX OFFENDER MANAGEMENT Randi Lanzafama, Virginia Department of Corrections · an overwhelming majority of victims under the age of 12 are assaulted by someone they know · stable housing, stable employment and a support system help to reduce the rate of re-offence · multi-agency collaboration is important in managing sex offenders; limited resources should be maximized through collaboration and coordination · those who provide treatment to sex offenders should have specialized training ·
while there is no “silver bullet,” electronic
monitoring is one tool in the arsenal CANADA’S IMPORTANCE TO THE SOUTHERN LEGISLATIVE CONFERENCE STATE ECONOMIES Roy Norton, Canadian Embassy · the United States exports $177 billion in goods and services to Canada, an amount that exceeds exports to Japan, China, Germany and the United Kingdom combined · bilateral trade with Canada supports 7.1 million American jobs, and 36 U.S. states export more to Canada than to any other country · bilateral cross-border commerce totals $1.6 billion per day, and more than 70% of our bilateral trade is transported by truck; on average, 25 trucks cross the shared border each minute · since the 2001 terrorist attacks, Canada has invested more than $10 billion in border security and infrastructure · Canada was the first country to station specially trained officers abroad to intercept persons attempting to enter North America with improper documents · Canada supports the war on terror through, for example, involvement with the NATO-led force in Afghanistan · Canadian firms have invested $197 billion in the United States, and U.S. firms have invested $243 billion in Canada · in 2006, trade between the Southern Legislative Conference (SLC) states and Canada totalled $116.5 billion; the SLC states exported $62.5 billion to Canada, and Canada exported $54 billion to the SLC states · 12 of the 16 SLC states have Canada as their primary trading partner, and 2.61 million jobs in the SLC region are supported by bilateral trade with Canada · recent data indicate that there were 5.4 million tourists travelling to the SLC region from Canada, and these tourists spent $2.89 billion; moreover, there were 2.2 million tourists travelling to Canada from the SLC region, and these tourists spent $1.37 billion · there are 5,482 Canadian-owned companies operating in the SLC region, and they employ 163,136 persons · Canada is the largest and most secure supplier of natural gas, electricity, uranium and oil to the United States, and has 179 billion barrels of proven oil reserves, second only to Saudi Arabia · while the United States government wishes to implement fully the land and sea aspects of the Western Hemisphere Travel Initiative by summer 2008, the recent surge in the demand for passports suggests that more time may be needed; as well, a possible solution may be enhanced drivers licences · a U.S. industry coalition has estimated that implementation of the Western Hemisphere Travel Initiative will cost the U.S. economy $800 million Respectfully submitted,
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