2013 Federal Agenda

Chamber of Commerce of Huntsville/Madison County, Alabama

Federal Budget Situation By large measure, the overarching issue facing Huntsville and Madison County is the looming Federal agency budget reductions resulting from sequestration. Our 36,000 employees on Redstone Arsenal and the 420 aerospace and defense companies in the area stand to suffer overwhelming cuts as domestic defense budgets are reduced as a result of this legislation. Precise impacts cannot be determined until federal agencies, particularly the DoD, define how cuts will be taken. What is known is that an estimated 10% reduction in domestic programs taken with the recently enacted federal civilian workforce cutbacks and furloughs will have devastating implications on our economy, will cripple planned growth, and likely cause an exodus of a portion of the very talented workforce that calls this area home.

Alabama ranks fourth in the nation for defense spending at 8.6 percent of its GDP. About half, or $7 billion, of the state’s defense revenue went to contractors and defense personnel at Redstone Arsenal in Huntsville/Madison County. Huntsville/Madison County ranks fifth in the nation among communities who received the most defense money. Huntsville/Madison County Chamber of Commerce figures show Redstone Arsenal agencies, including NASA, and program offices currently manage more than $100 billion in total pass-through annual federal budgets. Sequestration estimated impacts of a 10% reduction in defense spending will directly lead to reduced tax revenues affecting employment, schools, roads, public services and housing, and they will cause a contraction in the industrial base present in the area.

Requested Action: The Chamber encourages the Congressional delegation to continue its efforts to repeal sequestration legislation or otherwise find a solution that mitigates the overwhelming impacts to our community.

Space and Missile Defense Mission Area America requires a robust space and missile defense architecture composed of highly sophisticated capabilities that are networked and integrated from earth to space. 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 missile defense architecture that is responsive, resilient and lethal against the current and future enemy threats. Supporting our National defense and interests at home and overseas requires a strong space and missile defense posture.

Meeting these obligations requires a strong aerospace and defense industry that is agile, robust and visionary.

Community Impact: More than 8,000 local jobs are tied to various missile defense programs.

Requested Action: Sustain full funding for these critical programs.

U.S. Human Space Flight & Exploration Policy The NASA Authorization Act of 2010 calls for the development of a Multi-Purpose Crew Vehicle and Space Launch System (SLS) to explore beyond Low Earth Orbit, and to serve as a backup transportation system to the International Space Station (ISS). More than 1,900 local jobs are currently supporting the SLS development and ISS operations. A smooth transition to the follow-on Space Launch System and recognition of MSFC’s national leadership role in space

transportation systems development is critical to a healthy MSFC and its surrounding Redstone community.

Requested Action: The Chamber requests full funding for the Space Launch System ($2.64B) as defined in the 2010 Authorization Act. We ask the delegation to ensure that Space Launch System funding is focused toward the development of the flight vehicle and not ground processing systems and facilities. Also, to ensure that Multi-Purpose Crew Vehicle test flights are not financed with Space Launch System funds.

Support Army Aviation S&T Funding The performance of Army Aviation over the last 12 years of war has been outstanding, flying more than 5.7 million flight hours in support of our conventional and special operations forces. This has been accomplished with platforms designed in the ‘70s and ‘80s as no new combat helicopter has entered service in nearly 30 years.

The Army’s current fleet will not last forever, and there are bounds to their ability to upgrade current designs to meet future needs.

While sustaining our current fleets until new technology can be brought on line, the time is now to invest in science and technology to begin fielding future vertical lift designs by 2025. A new major development in Joint Multirole Rotorcraft must begin next year.

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 investing in future capabilities that maintain the nation’s position as a leader in aviation technology and capabilities.

Biotechnology Biotechnology represents a growing and promising sector in the Huntsville/Madison County economy. Since the HudsonAlpha Institute for Biotechnology opened in Cummings Research Park, biotech has further diversified the region’s high technology braintrust. Federal funds dedicated to the Institute’s research mission have exceeded $125 million and the number of resident companies has nearly doubled, increasing from 12 companies in 2008 to 23 in 2013. Many of these for-profits are leveraging the emerging discoveries, advancements and expertise stemming from this federally funded research.

Employing systems approach, the institute addresses multiple areas of human health using leading, high throughput genomics technologies. Currently, federal dollars include but are not limited to research into infectious and non-infectious disease, sustainable fuels and agriculture. These funds are primarily through the National Institutes of Health, Department of Energy and Department of Defense.

National Impact: The United States has been a leader in the advancement of diagnostics and therapies for national and global human health. To continue, research funding through NIH, DOE and DOD must remain robust. Recent studies show the tremendous return on investment from medical research dollars. However, due to limited funding, success rates with peer-reviewed competitive grants through the NIH, for example, have decreased from one in three to one in six. If the sequestration threat is realized, it would slow progress and shorten strides in diminishing both human suffering and healthcare’s bottom line.

Community Impact: Federal funds supporting research have strengthened the economy in the Huntsville-Madison County area.

Many discoveries and advancements made through basic research

at HudsonAlpha are being translated into commercial applications.

These range from disease biomarkers to enabling technologies in disease detection and medical devices. Basic research has a direct economic benefit for the Huntsville-Madison County area through employment, strengthening the tax base and the creation of critical mass in the biosciences.

Requested Action: The Chamber urges the members of the congressional delegation to increase or maintain federal funding for genomics-based research through the NIH, DOE and the DOD. These federal dollars support work being done on the Cummings Research Park Biotechnology Campus.

Infrastructure The prospect of future rounds of Base Realignment and Closure make infrastructure improvements a top priority for the community.

The economic success of our region is reliant upon effective transportation networks that can efficiently move commuters, freight and services that are vital for continued growth and development of the Tennessee Valley inclusive of Redstone Arsenal.

The Chairman of the Madison County Commission, the Mayors of Huntsville and Madison and the leadership of Redstone Arsenal have jointly endorsed the following key projects as the top road priorities for the region: • 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.

• US 231 North and South Overpasses and Corridor Improvements: Funding for the construction of the scheduled improvements at Memorial Parkway and Mastin Lake Road. Funding is also requested for the preliminary engineering, right of way acquisition, and construction of the planned capacity projects required for Memorial Parkway and Mountain Gap Road and Winchester Road.

• Martin Road Widening: Fund the widening of Martin Road from Zierdt Road to Laracy Drive.

• Martin Luther King Jr. Boulevard / Northern Bypass - Interchange at Memorial Parkway to Highway 72 East: Funding for this project.

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

• US 72 West from Providence Main to County Line Road: Improvements to US 72 West using National Highway System funds.

• Winchester Road from Naugher Road to New Market Road: Provide funding to construct improvements on next phase of Winchester Road.

• Jeff Road: Fund widening of Jeff Road from U.S. Highway 72 to Alabama Highway 53.

• Graphics Drive Extension: Fund this needed improvement.

Support Development of an Alabama National Network for Manufacturing Innovation Site The federal government is investing $1 billion in the development of a National Network for Manufacturing Innovation (NNMI), consisting of approximately 15 manufacturing innovation institutes around the country. These public-private partnerships are intended to serve as regional hubs of manufacturing excellence, which will help to make U.S. manufacturers more competitive and encourage investment in the United States.

Alabama is quickly becoming a center of advanced manufacturing for the nation with tremendous corporate investment by the

automotive and aerospace industries. Alabama would benefit tremendously as a result of a manufacturing innovation institute being located in the state. While the NNMI is designed with a national scope to help manufacturers become more competitive, the location of this institute in Alabama would encourage investment and job growth for existing manufacturers in the state, as well as the recruitment of new industry.

Huntsville offers the ideal solution as the hub of a regional enterprise that engages Tennessee, Georgia, Mississippi and Louisiana as key partners and reaches out to engage specific regional assets. Individuals from NASA, Army Aviation, Missile Defense, the University of Alabama in Huntsville and the Oak Ridge community have established reputations as leaders in advanced manufacturing.

Most of the major U.S. aerospace and defense corporations have a Huntsville presence, which offers the opportunity to engage locally and extend nationally – a key component for success of the institute.

The research and academic institutions are strong, starting with the flagship organizations of UAH and Oak Ridge National Laboratory and, tentatively, extending to include Georgia Tech, Mississippi State, the University of Tennessee, LSU, Tennessee Technological University and others, including community colleges. Also, the R&D capabilities of NASA Marshall Space Flight Center and U.S. Army Aviation and Missile Research, Development, and Engineering Center add great strength and value. Huntsville is prepared to lead this effort. Key partners are being engaged. The strategies are strong, and success can be achieved.

Small Satellite and Launch System Initiative Huntsville has gained recognition as a center of excellence for the development and operation of very small satellites (less than 400 pounds). The U. S. Army Space and Missile Defense Command/ Army Forces Strategic Command (SMDC) launched and operated two very small satellites in 2012. SMDC-ONE (a nine-pound nanosatellite) successfully relayed voice communication between unmodified, Army standard issue hand-held radios.

In addition, in 2012 SMDC, the Army Program Executive Officer (PEO) for Missiles and Space and the NASA Marshall Spaceflight Center were selected over intense competition for three Office of the Secretary of Defense (OSD) Joint Capability Technology Demonstrations (JCTDs): 1) SNaP-3, a follow-on to SMDC-ONE communications relay - sponsored by Southern Command; 2) Kestrel Eye, a battlespace awareness imaging microsatellite; and 3) SWORDS, a dedicated nanosatellite launcher. Both SNaP-3 and SWORDS are sponsored by U.S. Pacific Command with U.S. Special Operations Command as a co-sponsor.

The unique mix of government, industry and academia with expertise in the development of small satellites, makes Huntsville perfectly suited to develop such a game-changing capability for the Army, NASA and commercial space.

Requested Action: • The Chamber requests that the Delegation work with DoD and NASA to support budgets for the development of responsive low-cost space capabilities, including nanosatellites and microsatellites, their accompanying launch systems and key enabling technologies.

• The Chamber requests that language be passed into law establishing the U.S. Army Space and Missile Defense Command/Army Forces Strategic Command in Huntsville as “The Center for Small Satellite Development” (CS2D) to address Army ground component war fighter requirements, as well as other DoD requirements, and that a new line item be included in the DoD budget for this purpose.

• The Chamber requests that the Delegation preserve and protect the budget for Joint Capability Technology Demonstration (JCTD) office managed by OSD.