The California Institute For Federal Policy Research 419 New Jersey Avenue, SE, Washington, D.C. 20003 Voice: 202-546-3700 Fax: 202-546-2390 e-mail: ransdell@calinst.org California Capitol Hill Bulletin Volume 4, Bulletin 2 -- January 16, 1997 To expand communications between Washington and California, the California Institute provides periodic faxed bulletins regarding current activity on Capitol Hill which directly impacts our state. Bulletins are published weekly during sessions of Congress, and occasionally during other periods. The e-mail edition is made possible in part by a computer server donation from Sun Microsystems. Delegation Letters Circulating to Urge California as Site for NSF Earthquake Research Center and Computing Center Representatives Jerry Lewis (Redlands) and George Brown (San Bernardino) are circulating two Dear California Colleague letters asking for delegation support regarding two California proposals for National Science Foundation (NSF) research projects. The first letter urges members of the California delegation to sign a letter to NSF Director Neal Lane urging his support of a grant application recently submitted by a consortium led by the University of California, San Diego (UCSD) for consideration under the National Partnerships for Advanced Computational Infrastructure program. UCSD's advanced computing alliance proposal involves California's leading research universities -- including all nine UC campuses and all 22 CSU campuses -- as well as General Atomics and other leading technology companies, the national Department of Energy laboratories, and a variety of respected research institutions and facilities from around the nation. The letter states that the effort will "lead to advances in computational and networking infrastructure and will spur new developments in many research fields that require leading edge computing and communications capabilities." The second letter urges support for an NSF grant proposal submitted by the University of California, Berkeley on behalf of a consortium of nine universities -- including several UC campuses, Stanford, USC, the California Institute of Technology, and the University of Washington -- for the national competition for NSF Earthquake Engineering Research Centers. The proposed Center will focus on solving earthquake problems of densely developed, high-seismic regions. The delegation letter states that the Center "will develop a master model for the modern urban environment, develop the engineering technology and policy tools for loss reduction programs, and will implement these programs in a demonstration project on a regional scale." The letter further states that the "extensive expertise and demonstrated capabilities of the personnel and organizations encompassed by the UC Berkeley proposal will lead to real reductions in earthquake losses that far exceed the Center's level of funding." Both letters will be sent to the National Science Foundation within the next few days. Members wishing to sign either or both letters should contact Jeff Shockey with Rep. Lewis (5-5861) or Skip Stiles with Rep. Brown (5-8483). House Transportation Leadership Calls for Budget and Policy Requests In a January 9 letter, the Chairmen and Ranking Members of the Committee on Transportation and Infrastructure and the Subcommittee on Surface Transportation announced that the reauthorization of the Intermodal Surface Transportation Efficiency Act (ISTEA) would be the top priority for the Subcommittee for this year. The committee leadership noted that the ISTEA reauthorization legislation, expected to be a bipartisan endeavor, would be based largely on the information obtained during the 12 hearings held last year. Nevertheless, the Committee will give consideration to any issues or policy initiatives individual House members wish the Committee to examine. It was suggested that Members should forward any specific policy proposals to the Subcommittee in writing by February 25, 1997. In addition to requesting proposed modifications to federal transportation policy under ISTEA, the leadership also outlined the process by which members may submit funding requests for specific transportation projects in their district. Any such requests should be submitted by February 25, 1997. In late February and early March the Committee plans to hold hearings for members to testify on behalf of their particular funding requests. In his Extension of Remarks in the January 9, 1997 Congressional Record, Subcommittee Chairman Thomas Petri (Wisconsin) detailed the transportation project evaluation criteria and the responses expected to be contained in each funding request. For a copy of the criteria, call the Institute at 202-546-3700. Operation Gatekeeper to Bolster Forces in San Diego  Tuesday, the Immigration and Naturalization Service (INS) announced that 237 new Border Patrol agents are being dispatched to California, a 10 percent increase over the existing deployment. INS Commissioner Doris Meissner announced that the initial dispatch of agents to California will be part of a larger dispatch of agents that will total 506 by the end of the year. The majority of the agents will be assigned to the Southern California border just east of San Diego. This announcement follows a recent October, 1996, announcement of the addition of 124 agents to the once chronically understaffed San Diego and eastern San Diego border (see Volume 3, Bulletin 36). In addition to the increase in agents to the field, the INS announced that it will appropriate $4.3 million to construct three miles of censored triple-fencing from Imperial Beach inland towards Chula Vista, both in San Diego County. In addition, $4 million will be procured for improvements and expansion to the existing San Ysidro port of entry "port court," where hearings are held for illegal immigrants. The San Ysidro facility, as well as many others in the San Diego area, will be retrofitted with automatic case-processing systems that are expected to expedite and coordinate the processing of illegal immigrants. Aerospace Industry Continues to Face Turbulence On Thursday, GM-Hughes and the Raytheon Company announced an agreement for Raytheon to purchase Hughes Electronics, a major producer of aerospace and defense technology. The $9.5 billion sale must be approved by the board of the General Motors Corporation, the parent company of Hughes. GM is expected to fully approve the sale. The sale is but one more in an increasing flurry of sales and consolidation as aerospace and defense companies try to better position themselves for the competition over increasingly rarefied Pentagon contracts. Just last month, the Boeing Company announced their $13.3 billion dollar plan to purchase McDonell Douglas. That purchase was in turn preceded by Boeing's purchase of Rockwell's aerospace divisions. Not to be outdone, Raytheon recently finalized their purchase of the Texas Instruments Company. Raytheon's winning bid constitutes a blow to Northrop Grumman, which had sought to purchase Hughes Electronics but which was outbid by Raytheon. Alameda Corridor Project Loan Package to Be Signed Friday On Friday, Mayors Richard Riordan (Los Angeles) and Beverly OÕNeill (Long Beach) will join Transportation Secretary Federico Pena and President Clinton for a White House ceremony to sign documents on a $400 million federal loan that completes the overall financial package for the Alameda Corridor Project. Members of CaliforniaÕs Congressional delegation will also attend the signing ceremony. The Alameda Corridor Project will build 20 miles of rail and highway freightlinks from the Ports of Los Angeles and Long Beach to downtown Los Angeles, consolidating 90 miles of existing rail operations into a single high-capacity system. The two ports currently handle one-fourth of all U.S. waterborne international trade. The Alameda Corridor will significantly enhance the regionÕs ability to accommodate expected increases in international trade. With a total price tag of $1.9 billion, the project will be jointly funded by the Ports of Los Angeles and Long Beach ($400), project revenue bonds ($700 million) and local and state sources ($350 million). Federal grants from the Department of Commerce and DOTÕs ISTEA contribute an additional $47 million. The $400 million federal loan accounts for the balance of the funding needed. Both Congress and the President have approved the $59 million appropriation which will cover the start-up and financing costs for the loan. Journal Reports USDA Will Lift Mexican Avocado Quarantine The U.S. Department of Agriculture will soon lift an 82-year-old ban on the importation of avocados from Mexico, according to a report in the January 15 Journal of Commerce. The publication quotes unnamed Òsenior USDA officialsÓ as confirming the plans to end the ban, despite official comments that no decision has yet been made. The California Avocado Commission, supported by the Farm Bureau, Grange and Farmers Union, opposes lifting the ban, citing concerns about pests which could harm the U.S. avocado industry. Roughly 90 percent of U.S. avocados are produced in Southern California. Los Angeles/San Francisco Trade Rises in First 3 Quarters of '96  International trade through the customs districts of both Los Angeles and San Francisco rose solidly in the first three quarters of 1996, according to the quarterly CMC- Tradeweek Regional Trade Report, a joint publication of the Claremont McKenna College and Tradeweek magazine. Los Angeles posted a 15 percent gain in the first three quarters of 1996, for a total volume of $124.2 billion. San Francisco posted a 20 percent increase for a total volume of $79.8 billion. Los Angeles' international trade, which continues to outpace the entire nation, was overwhelmingly with Pacific Rim nations. Japan led the list of countries, with $33.8 billion of total volume trade, followed by China, Taiwan, Korea, and Singapore. Top exports out of Los Angeles included computer circuits and parts, aircraft, cotton, cars, and auto parts. Top imports into Los Angeles included, once again, computers, automobiles and parts, as well as office equipment and footwear. The Los Angeles trade district includes the ports of Los Angeles and Long Beach, Los Angeles International Airport, and ports in Ventura and Las Vegas.