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-S. 1684: A bill to establish a partnership between the Mexican Government, educational institutions, and private industry and the United States Department of Energy laboratories for environmentally related technology and educational transfer.

- S. 1894: A bill to amend the Trade Act of 1974 to provide trade adjustment assistance during the implementation and phase-ín of the North American Free Trade Agreement, and for other purposes.

Project Director: John Alic 228-6345.

Estimated publication date: Summer 1992.

Requested by:

House Committee on Education and Labor

Senate Committee on Labor and Human Resources

AMERICAN INDUSTRY AND THE ENVIRONMENT: IMPLICATIONS FOR
TRADE AND U.S. COMPETITIVENESS (R)

Industry throughout the world increasingly must take into account environmental issues such as ozone depletion and climate change. U.S. industry will face increasing environmental pressures, but also new opportunities, with different sectors affected differently. The challenge for American firms and the U.S. government will be to resolve the need for environmentally sound practices with the need to stay competitive internationally. The study will assess several issues described below:

How do environmental issues, trade and competitiveness concerns interact in the international arena? OTA would examine possible difficulties for U.S. industry in competing with firms in countries that have different environmental standards or that provide their firms more government help (e.g., technical assistance, financial incentives). The study would also discuss the changing institutional context facing policymakers. Among the questions they confront: how to address environmental concerns in bilateral or multilateral trade negotiations (e.g., Mexican trade, the GATT), and how to address trade and competitiveness issues in new environmental treaties or agreements. In addition, transfer of environmental technologies is emerging as a key concern as the United Nations and other bodies focus on environment and development relationships among industrialized and developing economies.

How can American business and the U.S. economy benefit from the rapidly growing global interest in controlling emissions, treating wastes and preventing pollution? The market for environmental technologies, products and services could grow to $300 billion per year by the end of this decade, reflecting heightened global environmental priorities. The study will assess whether American firms are well positioned to take advantage of these opportunities which are being aggressively pursued by Japanese and European firms. It will also examine the current and potential role of U.S. government to assist in the development of a strong environment industry through programs such as export promotion, foreign assistance, and research and development.

Possible Impact on Legislation: Over 170 bills and resolutions introduced into the 102nd Congress have potential relevance to the environment, trade, and competitiveness study. Many have to do with environment and trade interactions, or competitive impacts of differing environmental regulations among countries. Others pertain to environmental technology. Those most directly related to the study are listed below.

-H.RES. 146: A resolution expressing the sense of the House of Representatives with respect to the United States objectives that should be achieved in the

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-H.RES. 151: A resolution expressing the sense of the House of Representatives with respect to extending "fast track" procedures to bills to implement future environmental and labor standards agreements.

-H.RES. 161: A resolution relating to unfair practices in international trade resulting from differing national environmental policies, standards, and controls. -H.RES. 185: A resolution concerning the United States position on environmental protection at the 1992 United Nations Conference on Environment and Development in Brazil.

-H.R. 964: (IDENTICAL TO H.R.665); A bill to provide for the implementation
of the foreign assistance provisions of the Enterprise for the Americas Initiative,
and for other purposes.

-H.R. 2083: A bill to amend the Federal Insecticide, Fungicide, and Rodenticide
Act to improve the safety of exported pesticides, and for other purposes.
-H.R. 2100: National Defense Authorization Act; (sec. 254), authorizes $20
million for in FY 1992 and $10 million in FY 1993 for a grant to a non-profit
organization to establish an advanced technology demonstration facility having
expertise in applied environmental technology and business administration.
-H.R. 2358: A bill to amend the Solid Waste Disposal Act to ensure that any solid
waste exported from the United States to foreign countries is managed to protect
human health and the environment.

-H.R. 2508: A bill to amend the Foreign Assistance Act of 1961 to rewrite the
authorities of that Act in order to establish more effective assistance programs.
-H.R. 3428: A bill to authorize capital contributions for certain international
financial institutions in order to enhance international economic stability and
economic growth, to provide for the alleviation of poverty, the protection of the
environment, and energy efficiency, to provide for the implementation of the
Enterprise for the Americas Initiative, to provide assistance in the financing of
United States exports, and for other purposes.

-H.R. 3431: A bill to improve the effectiveness of international environmental programs by coordinating international trade policy and efforts to enforce measures to protect national and international resources and the environment, and for other purposes.

- S. 59: A bill to mandate a study of the impact on international trade of compliance with international environmental agreements and the justifiability of foreign nation environment, conservation and health laws, and to amend the Trade Act of 1974 and for other purposes.

- S. 201: A bill to respond to the global environment degradation brought on by human activities by reversing the trends that are presently altering or destroying vast portions of the biosphere, and to ensure that United States policies provide for the protection of the world environment from future degradation, and for other purposes.

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- S. 898: A bill to amend the Federal Insecticide, Fungicide, and Rodenticide Act to improve the safety of exported pesticides, and for other purposes.

- S. 984:* A bill entitled the "International Pollution Deterrence Act of 1991".

S. 1124: A bill to authorize the relief of indebtedness owed by foreign countries to the United States in consideration for commitments to undertake certain approved environmental improvement projects or activities.

-S. 1643: A bill to amend the Solid Waste Disposal Act to make improvements in the regulation of exports of hazardous and additional wastes, and for other purposes.

-S. 1684: A bill to establish a partnership between the Mexican Government, educational institutions, and private industry and the United States Department of Energy laboratories for environmentally related technology and educational transfer.

Project Director: Wendell Fletcher 228-6352.

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Requested by:

House Committee on Foreign Affairs

House Committee on Energy and Commerce
Senate Committee on Finance

TECHNOLOGY OPPORTUNITIES IN ECONOMIC CONVERSION (R)

As the Cold War winds down, the Nation faces a transition to an economy less devoted to defense. The challenge is to keep dislocation of workers and communities to a minimum, absorb veterans into the economy, and to take advantage of opportunities to channel human and technological resources into building a stronger civilian economy. Some industries may be revitalized to serve both as efficient suppliers for a restructured defense system and as capable competitors in world commercial markets. More generally, many people now see economic performance as contributing to national security at least as much as military prowess.

This study will coordinate closely with a complementary OTA study on projected defense needs. It will assess the likely extent of dislocation from shutting down military bases and closing or scaling back production at defense plants. It will discuss ways to retrain workers at all levels, including the technical and managerial, to create a more versatile work force. Recent experience with regional economic development efforts following industrial restructuring (e.g., the industrial revival in some midwestern states) will be examined, as will current activities by States to deal with defense cutbacks. Relevant experience in foreign countries will also be reviewed. The study will look at the potential for converting facilities and technologies from defense to commercial activities. It will explore possibilities for continued support of research and technology development relevant to the civilian economy that now depends on defense funding. It will examine innovative policies for R&D and the application of new technology to commercial production, for technology transfer and diffusion, and for economic incentives for investment. Policies to encourage long-term investments in new or revived strategic industries will be explored. Particular attention will be given to possible government support for dual use technologies and industries (e.g., aircraft manufacture, microelectronics, machine tools).

Besides coordinating with OTA's complementary study on future defense needs, this study will be coordinated with other ongoing OTA assessments, on worker training and U.S. competitiveness, industry and trade policies and U.S. competitiveness, and international cooperation in defense technology.

Possible Impact on Legislation: In addition to the bills listed below, the total listing of legislation that involves matters of defense, manufacturing, and worker dislocation and retraining runs to well over a hundred bills.

- H.RES. 233: A resolution expressing the sense of the House of Representatives
that the defense budget should be reexamined and reduced based on the
changing national security needs of the U.S. in the post Cold War era, thereby
reducing the Federal budget deficit.

- H.R. 852: A bill to require the Secretary of Defense to increase outreach to small
disadvantaged businesses that are potential contractors or subcontractors of the
Department of Defense, through a variety of methods, and to require potential
defense contractors to actively comply with equal oportunity requirements.
H.R. 3112 and H.R.3177 and S.1498: Identical bills to amend the Internal Revenue
Code of 1986 to provide tax incentives for the establishment of businesses within
Federal military installations which are closed or realigned and for hiring of

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-H.R. 3427: A bill to amend title 10, United States Code, to provide for the
development of defense manufacturing and critical technologies.

-S. 1331: A bill to require the Secretary of Defense to establish a government
program for the improvement of undergraduate and graduate manufacturing
engineering education at institutions of higher learning in the United States.
-S. 1866: A bill to promote community based economic development and to provide
assistance for community development corporations.

-H.R. 171: A bill to establish a community adjustment assistance program for those
areas which are in or facing serious economic distress.

-H.R. 378 (and S.347): A bill to amend the Defense Production Act of 1950 to
revitalize the defense industrial base of the United States.

-H.R. 441: A bill to facilitate the economic adjustment of communities, industries,
and workers to reductions or realignments in defense or aerospace contracts,
military facilities, and arms exports.

- H.R. 914: A bill to provide an improved program of extended unemployment
compensation.

-H.R. 2329 (and S.1000): A bill to ensure that the recommendations of the

Commission on the Consolidation and Conversion of Defense Research and
Development Labs are available for consideration before any action is taken to
close or realign Department of Defense labs pursuant to the Defense Base
Closure and Realignment Act of 1990.

-H.R. 2366: A bill to authorize appropriations for economic adjustment assistance.
-H.R. 2377: A bill to amend title 5, U.S. Code, to provide civilian employees of the
Department of Defense who are separated as a result of a base closure involving
a transfer of the base to another Federal agency a hiring preference for Federal
job openings at the same location.

-H.R. 2613: A bill to provide expanded unemployment and training benefits to certain displaced workers.

-H.R. 2784: A bill to assist certain counties adversely affected by base closure,

change in the place of performance of a defense contract, the cancellation or failure to proceed with a defense contract, or reductions in defense spending. -H.R. 3400 (and S.1789): A bill to provide an emergency unemployment

compensation program.

-H.R. 3600 (and $.1791): A bill to provide a temporary extended unemployment
compensation program.

- S. 1317: A bill to authorize appropriations for defense economic adjustment
assistance.

Project Director: Katherine Gillman 228-6353.

Estimated publication date: Summer 1992.

Interim publication:

After the Cold War: Economic Adjustment to Lower Defense Spending (R),
early 1992.

Requested by:

Senate Committee on Labor and Human Resources

Senate Committee on Commerce, Science, and Transportation

Senate Committee on Foreign Relations

House Committee on Interior and Insular Affairs

Senate Committee on Armed Services, and its Subcommittee on
Industry and Technology

House Committee on Government Operations, and its Subcommittee on

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EARTH OBSERVATIONS SYSTEMS (R)

The United States and other countries now operate a variety of satellite remote sensing systems for monitoring the land, oceans, and atmosphere throughout the world. The United States currently operates Landsat and the weather satellite systems (both civilian and military). NASA scientific satellites and instruments probe the Earth's environment to assist scientific studies. NASA also plans to launch a series of sophisticated satellites (the Earth Observing System, or EOS) over the next two decades to gather global environmental data that would, among other things, assist in assessing global atmospheric warming and in managing Earth's natural resources. EOS, a major science project, which alone may cost more than $30 billion over 20 years, would markedly affect NASA's future budgets, as well as its future mix of scientific missions. Also, NOAA and DOD are each planning new environmental satellite systems for their applications.

This assessment will explore the need for and nature of the data these systems would generate, and how the systems would be operated to provide useful information. NASA, NOAA, and DOD are responsible for developing the systems. Many government agencies and private sector entities would use data from the new systems for a variety of ongoing research and applications programs. Hence, this assessment will also assess how well the new systems would serve probable users by examining the data types, formats, and distribution methods. It will also assess how these systems can be organized to provide timely access to accurate data and information for decisionmaking and consider the role of users in the design process.

The United States pioneered the use of remote sensing in the 1960s and '70s. Now other countries manage or are planning a wide variety of remote sensing satellites that both complement and compete with U.S. systems. Many of these systems overlap the capabilities of U.S. systems. This assessment will also analyze the capabilities of these systems and suggest ways to improve our ability to cooperate with and/or to compete economically with other countries in this important arena.

Potential Impact on Legislation:

H.R. 3614, A bill to amend the Land Remote Sensing Commercialization Act of 1984, was introduced on October 23, 1991. One of the provisions of this bill would establish a technology demonstration program. OTA's assessment will examine the types of data and advanced satellites and sensors that might be needed and/or available over the next two decades. It will also assess the role of government and private sector activities in remote sensing.

This assessment will provide input to the Appropriations Committees of the House and Senate as they deliberate over funding for remote sensing by NASA and NOAA. It will also provide input to the committees with authorization and oversight responsibilities as they consider the future direction of U.S. remote sensing activities.

Project Director: Ray Williamson 228-6448.

Estimated publication date: Fall 1993.

Requested by:

House Committee on Science, Space, and Technology

Senate Committee on Commerce, Science, and Transportation
Senate Committee on Appropriations, Subcommittee on

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