[Senate Hearing 116-]
[From the U.S. Government Publishing Office]
COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS FOR
FISCAL YEAR 2021
----------
THURSDAY, MARCH 5, 2020
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 9:59 a.m., in room SD-192, Dirksen
Senate Office Building, Hon. Jerry Moran (Chairman) presiding.
Present: Senators Moran, Shelby, Collins, Murkowski,
Boozman, Capito, Kennedy, Shaheen, Leahy, Reed, Coons, Schatz,
and Van Hollen.
DEPARTMENT OF COMMERCE
opening statement of senator jerry moran
Senator Moran. Good morning, everyone. The subcommittee
will come to order. Welcome to our first budget hearing of the
Senate Appropriations Subcommittee on Commerce, Justice,
Science, and Related Agencies for this fiscal year 2021.
Today, we have the honor of hearing from Secretary of
Commerce, Wilbur Ross, about the President's fiscal year 2021
funding priorities for the Department of Commerce.
Welcome, Secretary Ross. Thank you for your appearance. We
look forward to hearing from you this morning.
As we know, the Department of Commerce executes a broad
range of critical activities for our Nation, things that are
important to every American, things that are important to us as
Members of the Senate and issues that we care a lot about:
Research and development, cutting-edge technology, predicting
the weather, increasing trade and investment, recruiting
businesses to our communities. The Decennial Census has been a
significant component of the Department's business for the last
several years.
The President's fiscal year 2021 request for the Department
is $8 billion, which is $6.7 billion below the fiscal year 2020
enacted level, which represents a 44 percent decrease in the
Department's overall budget. While this is a large decrease on
paper, much of it is due to the--in large part to the planned
ramp-down of the funding of the 2020 Census. That said, I am
troubled by some of the proposed cuts to core programs that are
overshadowed by the magnitude of the reduction to the Census
Bureau.
While this is a budget hearing about fiscal year 2021, we
cannot overlook that in under a month, the Department, through
the Bureau of Census, will be receiving millions of responses
from the public for the Decennial Census. This subcommittee and
Congress has provided funding to ensure the necessary resources
are available to conduct a timely and accurate Census, and I
encourage everyone to fill out their forms.
I am pleased to see the Department's fiscal year 2021
budget would increase research and development investments in
support of industries for future initiative. This initiative is
important for maintaining the United States' position as a
leader in innovation.
But, I believe we must also recognize that, currently, more
than 90 percent of the Nation's innovations sector growth
occurs in only five metropolitan areas, all of which are
located on the coast. This type of concentration underscores
the importance of continued funding for the Department's
nationwide economic development programs, which allow us to
expand the geographic extent of all innovation economies--of
the innovation economy, and capitalize on the potential for all
regions of the Country.
The Department's budget proposal also includes a $25
million increase to prepare the National Telecommunications and
Information Administration (NTIA) for testing new wireless
networks in advancing spectrum management, which is an
important component of us, the United States, winning the 5G
race. However, I believe we also must not forget the concerns
from communities across the Country who are unable to fully
access broadband because they either are underserved or
unserved. I am interested to hear how the Department's proposed
investments will address this issue as part of this budget
request.
Mr. Secretary, I applaud you and others in the
administration for recent trade-related achievements, including
the Unites States-Mexico-Canada Agreement and the Phase 1 Trade
Deal with China. These deals are critical for restoring and
stabilizing markets for American exports, which are the
lifeblood of the Kansas economy. We are an export State, and
these issues matter greatly to me.
Although the Department's fiscal year 2021 budget does not
include any specific requests related to these agreements, I
would like to hear what role, if any, the Department will have
in regard to supporting the trade agreements I just mentioned
and the trade agreements that are still contemplated.
The Department's Section 232 Tariff Exclusion Process is
again a large component of the Department's fiscal year 2021
trade budget. In light of the recent Inspector General
Management Alert, which details several concerning
irregularities with this process, I have renewed my concerns
about the fairness and transparency of the overall execution of
Section 232 Exclusions. It is beyond time that the Department
of Commerce get this process right.
Another way that the Department significantly impacts
everyday life for local communities and citizens is through the
activities of the National Oceanic and Atmospheric
Administration, or NOAA. NOAA's weather programs are very
important to the people of Kansas, and we regularly experience
weather events and water events. I am pleased that the fiscal
year 2021 request includes full funding of NOAA's flagship
weather satellites, but I am concerned there is a lack of
funding to maintain and recapitalize NOAA's core observational
assets, including its fleet of aircraft.
The Bureau and programs of the Department of Commerce,
which I have highlighted here today, and also those which I
have not, are unquestionably critical for addressing the needs
of our Nation.
Mr. Secretary, the success of the Department of Commerce
depends upon its people, and currently the Department has a
people-problem. The vacancy rate and the time it takes to hire
across many of the Department's bureaus has become problematic.
For example, the Economic Development Administration (EDA) has
only filled 24 of 55 positions, or 44 percent, that are
responsible for overseeing and executing the nearly $1.2
billion that EDA received in fiscal year 2018 and 2019 for
disaster relief.
Within the office inside NOAA that is responsible for
managing our Nation's constellation of weather satellites,
there is a 24 percent vacancy with 243 vacant positions, 132 of
which have been vacant for over 2 years.
The Department must ensure its bureaus are sufficiently
staffed, and I am interested in hearing what the Secretary has
to say in that regard.
Mr. Secretary, again, I thank you for being here. I
appreciate the relationship that we have. I look forward to
hearing your views on these and other matters during today's
hearing, and I now turn to my colleague and friend, the senator
from New Hampshire, Senator Shaheen, for her opening remarks.
opening statement of senator jeanne shaheen
Senator Shaheen. Thank you, Mr. Chairman, and good morning,
Mr. Secretary. We are glad you could join us this year.
As Senator Moran indicated, the budget is really about our
priorities and where the Department puts its priorities. And,
so, if we look at this budget, what does it say about the
priorities of this administration?
The major increase in this budget is for the Office of the
Secretary, $35 million, or 58 percent.
At the same time, the budget cuts scientific research and
development at the National Institutes of Standards and
Technology by 14 percent. Overall, it cuts the Department by 30
percent.
At the National Oceanic and Atmospheric Administration, by
40 percent.
The research provided by these agencies leads to innovation
that fuels American technological leadership. The budget
eliminates more than half a billion dollars in NOAA grant
programs, which are critical to helping communities understand
and prepare for climate change and to support our seacoast and
fisheries in New Hampshire and across the Country.
I was disappointed particularly to see that the budget
eliminates the $10 million that the committee secured last year
to help the New England fisheries, which have really been
devastated by the reduced catches for decades, and any
additional fees will drive so many of the remaining fishing
operations out of business.
The budget eliminates the Manufacturing Extension
Partnership that helps domestic producers improve their
competitiveness at a time when so many of our small- and
medium-size manufacturers have been hard hit by the
administration's tariffs.
Trade wars have cost American businesses and consumers $50
billion according to an organization called Tariffs Hurt the
Heartland, including at least $111 million in New Hampshire.
The budget also eliminates the Economic Development
Administration, which funds infrastructure projects in
communities around the Country, and it is particularly
important to small States like New Hampshire, but States also
that have large rural areas that need help with development.
So, Mr. Secretary, I have to say, it feels like we are in
Groundhog Day, the movie, because we have seen these same
proposals decimated each year of the budget submission by this
Department. I understand that in the first year of the
administration given that you are looking at where your
priorities want to be, but when Congress rejects those
decisions, to see it submitted again and again seems to me that
there is a disconnect between where we all should be going to
support business and commerce in this Country.
On a separate topic, the 2020 Decennial Census begins next
week. It is critical to everyone in the United States, really,
and I appreciate your commitment to say you want to get this
right. This is the largest peacetime government mobilization.
It is imperative that we do get it right because the Census is
used in congressional apportionment, and it directs $1.5
trillion in Federal funding.
In fiscal year 2020, the committee provided $7.5 billion
for the Census Bureau, sufficient to fully cover the cost of
the 2020 Decennial, including additional outreach to hard-to-
count communities, and to provide a contingency if any major
issues arise.
So, I look forward to getting a briefing in the coming
weeks from New Hampshire as they are looking at the Census in
our State, and I look forward to seeing how the Department
executes this huge challenge.
With that, Mr. Secretary, I look forward to your testimony
and to the discussion today.
Senator Moran. Thank you, Senator Shaheen.
We are honored to be joined by the Chairman of the full
committee.
Senator Shelby. Thank you, Mr. Chairman.
Senator Moran. Mr. Secretary, the time has now come for
your testimony. Again, welcome, and we look forward to hearing
what you have to say.
STATEMENT OF THE HON. WILBUR ROSS, SECRETARY,
DEPARTMENT OF COMMERCE
Secretary Ross. Chairman Moran, Ranking Member Shaheen, and
Members of the Senator Appropriations Committee, thank you for
this opportunity to discuss President Trump's fiscal year 2021
budget request for the U.S. Department of Commerce. It is a
privilege to appear before you today.
We are committed to working with you to grow the U.S.
economy, defend our industries from unfair foreign competition,
and protect our national security. The fiscal year 2021 budget
for the Commerce Department achieves these goals: by providing
the resources needed for a successful completion of the 2020
Decennial Census;
By ensuring American leadership in space;
By bolstering trade promotion, trade enforcement, and
export controls;
By providing for satellite acquisition and vessel
recapitalization for the National Oceanic and Atmospheric
Administration;
By generating the timely economic data needed by businesses
to analyze markets, invest in communities, hire American
workers; and
By supporting research, development, invention, and
standards in leading-edge industries and technologies.
In the short time allotted to my opening statement, I will
discuss three priorities for next year. First, the Census
Bureau, then space, and then trade.
The request for Census Bureau for fiscal year 2021 is $1.6
billion. I am pleased to report that, with your support, we are
on budget, on schedule, and on track to accomplish the 2020
Decennial Census. Next year's budget supports the important
post-enumeration operations for determining apportionment and
the allocation of Federal funding.
The Commerce Department's Office of Space Commerce is the
second priority initiative that urgently needs funding. Our
request of $15 million advances U.S. leadership in space as we
shift responsibility for tracking tens of thousands, in fact,
hundreds of thousands, of pieces of space debris from the
Department of Defense to the Department of Commerce.
The exponential growth of commercial satellites is
increasing geometrically the risk of catastrophic collisions
that could generate additional debris and threaten critical
space assets. The task of tracking this debris and providing
accurate warnings to space operators was set forth in Space
Policy Directive Number 3.
Finally, the budget requests $474.4 million for
International Trade Administration, the ITA, enabling U.S.
companies and their domestic employees to compete on a level
international playing field.
We seek an additional $5 million for ITA's Enforcement and
Compliance Division to keep up with the increasing number of
anti-dumping and countervailing duty cases.
Funding will also enable us to conduct additional reviews
of foreign acquisitions of U.S. companies as required by the
Foreign Investment Risk Review Modernization Act, or FIRRMA.
In my time with you today, we can discuss the Commerce
Department's budget request for all of the bureaus, including
NOAA, NIST, the Bureau of Industry and Security, the U.S.
Patent and Trademark Office, and other agencies within the
Department. Thank you. And, on behalf of the Department, I will
try my best to answer any questions that you have.
[The statement follows:]
Prepared Statement of Hon. Wilbur Ross
Chairman Moran, Ranking Member Shaheen, and Members of the Senate
Appropriations Subcommittee, thank you for this opportunity to discuss
President Trump's fiscal year 2021 budget request for the U.S.
Department of Commerce (DOC).
It is a privilege to appear before you today.
Our fiscal year 2021 budget reflects the President's vision for
America's future and prioritizes security and prosperity for all
Americans while being responsible stewards of the taxpayers' dollars.
I look forward to discussing this vision I share with the
President, and how it is reflected in the Department's resourcing
decisions.
The administration is committed to working with Congress to grow
the economy and protect our national security.
Our budget achieves these goals by: providing the resources and
workforce needed for the successful completion of the 2020 Decennial
Census; ensuring American leadership in space; bolstering trade
promotion, trade enforcement, and export controls to combat unfair
foreign trade practices and secure sensitive technologies; providing
resources for ongoing satellite acquisition and vessel recapitalization
efforts for various missions of the National Oceanic and Atmospheric
Administration (NOAA); providing data and support needed by businesses
to invest, grow, and prosper; and supporting research and development
in cutting-edge technologies.
The fiscal year 2021 budget request of $7.9 billion is a $7.3
billion decrease from the fiscal year 2020 enacted amount of $15.2
billion. This reduction is primarily driven by the completion of the
2020 Decennial Census, which accounts for a $5.9 billion decrease in
the overall topline request.
One of my top priorities as Secretary has been to ensure that we
have a complete and accurate Census. The total request in fiscal year
2021 for the Census Bureau is $1.6 billion. I am pleased to report that
with your support we are on budget, on schedule, and on track to
accomplish this important mission.
But the mission of the decennial census does not end with the
completion of field operations.
The fiscal year 2021 budget request also supports the launch of the
post-enumeration operations for the 2020 Census and the release of data
critical for determining apportionment and funding allocations. Our
request for fiscal year 2021 will continue the transformation of the
Census Bureau organization and operations to a 21st century data-
centric model that blends survey data with administrative and
alternative digital data sources. This effort will further lay the
groundwork for enterprise-wide infrastructure in areas such as data
management, survey sample frames, user-centric dissemination systems,
and enhanced administrative records research.
The second item I would like to raise today is an important
initiative that urgently needs funding in fiscal year 2021.
The budget request seeks this Committee's support for $15 million
for the Office of Space Commerce (OSC). This funding advances the
administration's priority to maintain the United States' leadership in
space.
This endeavor supports the administration's continued commitment to
harness the full power of the commercial space industry, spawning
economic growth to enhance our economic and national security as laid
out in the President's National Space Policy Directives.
Fiscal year 2021 is a critically important building block year as
we work to implement the transition of public facing space situational
awareness (SSA) responsibilities from the Department of Defense to the
Department of Commerce as set forth in Space Policy Directive 3 (SPD-
3). In fiscal year 2020, we have reprioritized our activities to ensure
that significant strides can be made in the SSA related activities of
the U.S. Government, and the fiscal year 2021 budget continues and
expands this critical effort.
Maintaining the U.S. leadership in SSA is essential for both
national defense and for enabling space commerce. Increasing congestion
in the space environment enhances the risk of a conjunction, more
commonly known as a collision, that could cause debris that would
threaten both government and commercial uses of space. In fiscal year
2021, the Department of Commerce is aiming to achieve key milestones on
the urgent and critical path for standing up an open architecture data
repository (OADR) needed to help the industry avoid catastrophic in-
space collisions as soon as possible.
OSC, the National Institute of Standards and Technology (NIST), and
the National Telecommunications and Information Administration (NTIA)
each contributed to the White House's development of the Executive
Order that was issued on February 12 to strengthen national resilience
through space positioning, navigation, and timing (PNT) services.
In support of the administration's aim to enable U.S. businesses to
compete on a level playing field, the budget requests $474.4 million
for the International Trade Administration's (ITA).
ITA's budget continues to prioritize fair trade on behalf of U.S.
businesses and includes a $5 million increase in fiscal year 2021 for
the Enforcement and Compliance section to assist with Section 232
tariff exclusion processing and to conduct reviews of existing
antidumping and countervailing duty orders to ensure the robust
enforcement of our trade laws.
The fiscal year 2021 budget sustains ITA's role in modernizing the
activities of the Committee on Foreign Investment in the United States,
commonly known as CFIUS, and implementing additional reviews as
required by the Foreign Investment Risk Review Modernization Act.
In addition, $137.7 million is requested for the Bureau of Industry
and Security (BIS). These resources will be focused on BIS's efforts to
curtail illegal exports while facilitating secure trade of sensitive
technologies in coordination with U.S. allies and close partners.
Moreover, the fiscal year 2021 budget continues to fund BIS
activities necessary for the timely review of exclusion requests from
Section 232 trade actions. As of February 24, 2020, BIS has received
more than 169,000 exclusion requests and has posted decisions for more
than 112,000 of these requests.
These efforts help ensure that the U.S. steel and aluminum
industries are given a level playing field to offset global
overproduction to ensure our domestic industry can produce materials
that are critical for U.S. national security.
To further the Department's objective to prioritize core government
functions that promote national security and support economic
opportunity, the fiscal year 2021 budget request for the National
Oceanic Atmospheric Administration (NOAA) is $4.6 billion.
The fiscal year 2021 budget supports NOAA's mission-critical
activities, including sustaining current weather satellites to provide
vital forecast information for hurricanes and other significant weather
and space weather events.
Specifically, the fiscal year 2021 budget requests $108.1 million
for the continued development of NOAA's Space Weather Follow On (SWFO)
satellite program. The SWFO program ensures that we avoid any
discontinuity in our current satellite observation capabilities, which
are critical to providing accurate and early warnings of potentially
destructive space weather events. fiscal year 2021 funding will keep
development of this satellite program on track to launch on the same
rocket scheduled for a NASA research mission, thereby saving taxpayers
millions of dollars.
The budget also requests $992 million to fully fund continued
development of our flagship Polar Weather Satellites and Geostationary
Operational Environmental Satellite-R series (GOES-R) programs. In
addition, the budget provides nearly $50 million to create a more
efficient and effective satellite architecture and data infrastructure,
including targeted investments in commercial satellite data.
Other fiscal year 2021 NOAA budget priorities include maintaining
the National Weather Service (NWS) forecasting capabilities; providing
critical support to commercial and recreational marine fisheries by the
National Marine Fisheries Service (NMFS); accelerating the mapping of
the U.S. Exclusive Economic Zone (EEZ) and Alaska; and, as part of its
ongoing fleet recapitalization efforts, begin procurement efforts and
initiate a detail design and construction competition for a third NOAA
vessel that will primarily perform charting and surveying functions.
Additionally, funding will support the continued requirements analysis
and feasibility studies for a fourth additional vessel.
The fiscal year 2021 budget continues to focus on helping American
businesses grow and prosper.
The $111.9 million request for the Bureau of Economic Analysis
(BEA) will allow it to continue to objectively and cost-effectively
produce critical economic indicators such as the Gross Domestic
Product. BEA's fiscal year 2021 budget includes an increase for the
creation of a new Chief Data Officer (CDO) to coordinate data
governance and lifecycle data management across Commerce's 12 bureaus.
Minority-owned businesses face unique challenges in starting and
operating businesses. To solve this critical problem, the fiscal year
2021 budget provides $10.3 million for the Minority Business
Development Agency (MBDA). This funding supports this administration's
commitment across the entire Federal Government to address the
difficulties facing minority business enterprises looking to start and
grow.
Research and development of new innovations and technologies that
will propel American businesses and transform the global workforce is a
department-wide area of emphasis.
The National Institute of Standards and Technology's (NIST) $737.5
million budget request is uniquely tailored to address these
challenges. Specifically, the fiscal year 2021 budget promotes U.S.
innovation and industrial competitiveness by advancing measurement
science, standards, and technology in ways that enhance economic
security and improve American citizens' quality of life.
In support of the Presidential Memorandum on Maintaining American
Leadership in Artificial Intelligence (AI), the budget request for NIST
doubles the investment in AI in fiscal year 2021 to $48.9 million.
NIST research will advance other industries of the future,
including quantum information science, 5G and advanced communications,
advanced manufacturing, and biotechnology.
The fiscal year 2021 budget proposes the creation of a second NIST-
funded advanced manufacturing institute to collaborate with industry in
building the supply chains required to manufacture advanced technology
products in the United States rather than abroad.
Separately, the fiscal year 2021 budget includes a $60.2 million
request for maintenance of NIST research facilities, including major
renovations to NIST Building 1 in Boulder, Colorado.
In recognition of the importance of 5G and advanced
telecommunications to the economy, the fiscal year 2021 budget request
for the National Telecommunications and Information Administration
(NTIA) is $72.2 million, a 79 percent increase from fiscal year 2020
enacted.
Within this request for NTIA, there is $25 million for modernizing
its 30-year-old spectrum management systems to improve Federal spectrum
management, enhance our ability to enable more efficient utilization
and spectrum sharing, protect from hacking, ensure data integrity and
confidentiality, and defend our national security. This modernization
will help accelerate the transition to 5G and support the private
sector's need for additional spectrum bandwidth.
Funding in fiscal year 2021 will also support NTIA's role in
implementing the President's Executive Order on ``Securing the
Information and Communications Technology and Services Supply Chain,''
as well as its leadership in representing the United States' interests
at multi-stakeholder forums on Internet governance and digital
commerce.
The United States Patent and Trademark Office (USPTO) seeks
authority to spend its own fee collections of approximately $3.7
billion.
With this request, the USPTO will fully support its strategic and
management priorities of issuing reliable and predictable intellectual
property (IP) rights; optimizing patent and trademark application
pendency; enhancing patent administrative appeal and post-grant
processes; fine tuning trademark operations, including trademark
administrative appeal and trial processes; conducting outreach,
education and engagement both domestically and internationally;
promoting and protecting patent and trademark IP rights; and investing
in our information technology (IT) stabilization and modernization.
In sum, this fiscal year 2021 budget request is predicated upon
providing the American taxpayers with a high return on investment while
making difficult tradeoffs with finite resources.
On behalf of the Department, I would be happy to answer any
questions that you may have.
Senator Moran. Mr. Secretary, you are right. Short amount
of time for a big Department with lots of important roles and
issues.
Let me start my questioning concerning NOAA and aircraft
recapitalization.
Mr. Secretary, I touched on this in my opening statement.
NOAA recently provided this subcommittee with a notional plan
to recapitalize its fleet of aircraft. While I recognize that
the President's fiscal year 2021 budget does not include
funding for that, I believe that projected obsolescence of
NOAA's aircraft demand that we take action to recapitalize
those assets.
Do you agree that NOAA's fleet of aircraft are in need of
recapitalization, and could you elaborate on what those
immediate needs for aircraft are?
NOAA FLEET AIRCRAFT RECAPITALIZATION PLAN
Secretary Ross. Yes, Mr. Chairman. NOAA's aircraft
recapitalization plan was published in October 2019, and it
looked at long-term recapitalization strategy and the
management of current aircraft.
The plan recommended NOAA procure two aircraft based on the
2018 appropriation. Consistent with this plan, NOAA was able to
procure two additional aircraft: A Gulfstream 550 and a King
Air aircraft, utilizing fiscal year 2018 appropriations. These
aircraft are essential to ensure NOAA maintains the ability to
plan for and respond to the Nation's most damaging and most
deadly weather events, agricultural security, and water
security.
The plan also recommended the future purchase of a third
aircraft. That third aircraft is being studied right now, and
it would have the primary missions of charting, surveying, and
weather forecasting. So, that was very likely to be a King Air,
but they have not made a final decision as yet.
Senator Moran. Mr. Secretary, thank you. I would appreciate
it if you would ask--if you, or if you could ask your staff, to
follow up with me, the subcommittee, in regard to the cost to
cover that air recapitalization, including that additional King
Air or----
Secretary Ross. I would be delighted to, Mr. Chairman.
Senator Moran. Thank you. Let me turn my attention to
trade, and I mentioned this in my opening statement again about
USMCA and Phase 1 deal with China.
Mr. Secretary, what role will your Department play in
helping implement, monitor, or enforce USMCA and the Phase 1
Trade Deal with China? And, does the fiscal year 2021 request
support that role?
UNITED STATES-MEXICO-CANADA AGREEMENT (USMCA)
Secretary Ross. Well, let me answer the third part first.
Yes, the budget request does provide the funding that we need
for those roles.
The roles we have played so far have been working very
closely with USTR to help them develop the want list, the
negotiating list, the product list, that they have had.
Subsequently, we will be dealing with the enforcement of
the provisions that are in there. We are very confident that we
have the staffing and the expertise to perform those functions,
and we are in constant communication between our office and
USTR on those topics.
Senator Moran. Mr. Secretary, thank you. Let me pursue the
Section 232 Exclusion Process. The President's fiscal year 2021
budget requests an increase of $3 million within ITA for
Section 232 Exclusion Process, which is based off previous
spending reports. I take to mean the total cost to administer
the process is going to be roughly $18.5 million in fiscal year
2021.
Mr. Secretary, is the $18.5 million amount that the
Department--is that the amount the Department needs to
effectively execute this process? If not, what would you say is
required?
And, as you know, there have been criticisms that were
levied against the Section 232 Exclusion Process by the
Department's Inspector General in late 2019, and there are
Members of Congress who certainly are dubious about that
process.
The second part of my question is, would you assure us
today that this process is being executed in a fair,
consistent, and transparent fashion?
SECTION 232 EXCLUSION PROCESS
Secretary Ross. Well, yes. First of all, as to the
Inspector General's comments, there were basically three
suggestions he made, all of which we have adopted. So, his
constructions were well-themed, and we have implemented each of
them.
One was to make sure that any ex parte communiques were
posted and made available to everybody involved.
Second was to make sure that once we posted a decision, it
was regarded as a final decision.
Those were really the two big, important parts of his--of
the Inspector General's recommendation, and we have--we are
adhering to those. Once in a while, it does become necessary to
correct an error, and so that is the only deviation from--
regarding the posted decision as final, and what causes that is
the huge number of requests that we have received.
To date, we have actually received 171,742 exclusion
requests. Of those, we posted 138,243. There have been 31,381
objections filed, and that is an objection rate of about 23
percent.
We have processed 112,819 requests; granted 87,808; denied
25,011; and returned for improper or incomplete filings some
31,553. We have active pending cases, 27,322.
Meanwhile, we have achieved a 79 percent decrease in the
initial posting times, and we have achieved a 63 percent
decrease in decision times under the new portal system that we
introduced mid-year last year. That has greatly accelerated the
processing that we do. On average, the Department now post
requests within 3 days of submission. It renders decisions on
cases without objection within 59 days of their submission.
So, what really takes the time are the ones that have
objections to them because that requires going back and forth
between the applicant and the objectors to determine whether or
not the request meets the requirement of a product that is not
made in sufficient quantity, sufficient quality, sufficient
timeliness to meet the applicant's requirements. So, there is a
lot of give and take, and that is the variable in the time
equation for when objections are raised.
When there are objections in the case of steel, we have
granted the exclusion in 18.8 percent of the cases. And, in the
case of aluminum, despite objection, we have granted the
exclusion in 21 percent of the cases. So, more or less, 20
percent of the time when there have been objections, it is
proven that they were not well-founded, and therefore, we
granted the exclusion request in any event.
Senator Moran. Now I recognize Senator Shaheen.
Senator Shaheen. Thank you, Mr. Chairman.
And, Mr. Secretary, I appreciate the effort that the
Department has to try and improve the exclusion process, but I
just have to point out that there are a number of small
business folks in New Hampshire who we have heard from who,
while the percentages may sound good, still are affected by the
process.
One of those is a company in Amherst, New Hampshire called
Walkin' Pets. It is a 35-person pet supply company. Their
signature product is a dog wheelchair that has been produced
for them in China, and so they are subject to tariffs. The
company believes that is a mistake, so they hired a lawyer to
help with the exclusion process. The company has been unable to
get an exclusion because the tariff schedule is misclassified,
and they are just trying to stay afloat.
So, while I understand that the numbers may look better,
the fact is we have too many small businesses that are
struggling because of these tariffs. And, when I asked
Ambassador Lighthizer a year and a half ago what the
administration was thinking about to help these small
businesses in the same way that they are helping farmers, the
answer was zero. You know, there isn't anything that is being
done to help them.
So, I would just urge you to let us know if there is more--
if there are more resources that are needed. But, we have to
help these small businesses, especially as we are looking at
some of the struggles around the Coronavirus for businesses to
be able to stay afloat.
Secretary Ross. I am certainly a supporter of small
business. It happens, though, that the 301 tariffs are the
domain of the USTR, not of the Department of Commerce, so I
think your discussions with Ambassador Lighthizer are really
the right ones to have. We are not the ones who can grant
exclusions under Section 301.
Senator Shaheen. Well, hopefully you will weigh in with
Ambassador Lighthizer about the need that our small business
have.
Secretary Ross. I will be very happy to carry informally to
the Ambassador your comments.
Senator Shaheen. Thank you.
As I said in my opening statement, I was really
disappointed to see again the budget proposed to eliminate the
Economic Development Administration. It is the principal office
within the Department of Commerce that supports communities
that are hurting from trade-related pressures. And, at a time
when communities and small businesses are facing these
challenges, it would be helpful to continue to support those
efforts that can make a difference for them.
And, one of the--it is also inconsistent with a recent
Tweet that you issued supporting the Economic Development
Administration, and we have a copy of that here, where you said
that ``The Trump administration continues to work diligently to
rebuild communities devastated by natural disasters by
providing small business with gap financing to recover and
grow. This investment will create stronger communities within
the region.'' And then you go on to talk about the revolving
loan fund and economically resilient communities, and the fact
that the EDA is the agency that is helpful with that.
So, I don't understand the inconsistency between
eliminating this agency and your comments about the
effectiveness of it.
ECONOMIC DEVELOPMENT ADMINISTRATION (EDA)
Secretary Ross. Well, EDA has been a useful component of
the Department. It has been useful to the economy. However, the
fiscal year 2021 budget supports the broad administration goals
of promoting national security, public safety, economic growth,
and job creation. But, given the need to prioritize Commerce's
funding, the budget requires difficult decisions in order to
maintain the core activities. Unfortunately, this is one of the
difficult decisions that we had to make.
Senator Shaheen. I understand the difficult decisions
around budgeting. As a former governor, I had to make some of
those decisions. But, at a time when we are trying to promote
growth of small businesses and economic innovation, it seems to
me that to eliminate one of the agencies that has been most
successful at that is shortsighted.
I am glad that the administration working with Congress was
able to get the U.S.-Mexico-Canada Trade Agreement approved. I
think that is something that has been very important to
business in New Hampshire.
But, 97 percent of exporting firms in our Country are small
businesses, and only about 1 percent of those small businesses
are doing business overseas. One of the things that is so
helpful to them is the International Trade Administration's
Global Markets Division, particularly the commercial service
that is within the U.S. Department of State that is part of the
Commerce Department.
So, again, I don't understand if we are trying to reduce
our trade deficit, trying to grow our exports, why we would
want to eliminate those agencies that are helping our small
businesses do that.
INTERNATIONAL TRADE ADMINISTRATION (ITA)
Secretary Ross. Well, we are continuing very actively at
the Foreign Commercial Services to have programs specifically
geared to help small- and medium-size businesses. And, in terms
of the USMCA raising the de minimis levels in export is a great
help for small business because a lot of them are retail
businesses selling relatively low-price consumer products. So,
that really opens up a very much bigger market for them.
Further, the Digital Services components of the USMCA and
of the Japan Agreement are also useful because for small
companies to export, as a practical matter, they cannot afford
to set up an office offshore, so they need to use our guys, and
they especially need to use the digital economy as a means of
marketing their products. So, we have been working very hard in
those regards to be responsive to the potential export needs of
small businesses, and large ones for that matter.
Senator Shaheen. Which I appreciate. And, that is why it is
so hard for me to understand why you are cutting those very
programs that would help those small businesses, like the
commercial service.
Thank you, Mr. Chairman.
Senator Moran. Thank you, Senator Shaheen.
Now the Chairman of the committee, Senator Shelby.
Senator Shelby. Thank you.
Secretary Ross, thank you for your service. This is your
fourth year----
Secretary Ross. Yes.
Senator Shelby [continuing]. As Secretary of Commerce. That
is a pretty long tenure.
Secretary Ross. Longevity counts, sir.
Senator Shelby. Longevity, right. Thank you very much.
I want to have a conversation here with you for a few
minutes about the Census. The Census is very--is a very
important mission of the Department of Commerce set out in our
Constitution, and it is the responsibility of the Secretary of
Commerce and the Census Bureau under you to meet those
responsibilities.
Bring us up to date on where you think we are, or where we
are, as far as the Census, which will be upcoming this year.
CENSUS 2020 UPDATE
Secretary Ross. Yes, Mr. Chairman. Well, my biggest worries
had been two-fold. One was would the systems be up and running,
would they be integratable, would they be ready to perform,
because we are in the process of bringing technology to the
Census.
The most prominent form that has taken is the availability
of responding by Internet. It is not a requirement. People can
still respond by paper just as they always have, but now they
can also respond over Internet or by phone. So, I am happy that
the systems have passed all of their tests. We think they are
ready to go.
As to the other big hurdle, my biggest worry was how do you
hire up to 500,000 part-time workers in a relatively full
employment----
Senator Shelby. That is a real challenge in today's
economies.
Secretary Ross. Yes, it is a real challenge. And, so, what
we have done is a number of things:
One, we have worked with all kinds of organizations in the
private sector. Some of the retailers who only have seasonal
needs, like Wal-Mart, have been very cooperative to us, and
they have given us access to the people they lay off
seasonally.
Second, we made a huge outreach to colleges and
universities because college students, given that it is only a
part-time job, given that in many areas it pays $20 an hour or
more, it is a very attractive job for college students.
Third, we have gone back to the people who previously had
served as census takers, and an amazing number of them are
happy to do it again, particularly retired people, and
particularly spouses who don't want full-time employment but
would like part-time.
So, what is the net result?
Senator Moran. Mr. Secretary, can I ask you to pull the
microphone closer to you? The----
Secretary Ross. Oh, I am sorry.
Senator Moran. You are not being picked up on the live
feed. Thank you.
Secretary Ross. I am sorry.
Senator Moran. Excuse my interruption.
Secretary Ross. Should I repeat what I said or continue?
Senator Moran. That is much better.
Secretary Ross. Okay. Sorry.
The net effect is this: We had a goal of getting 2,600,000
people to begin the application process. We actually have
3,056,000 who now have initiated the application process. That
is a very good ratio compared to the 500,000 that we need.
Similarly, we have 2,662,000 that have achieved the
Decennial Applicant Personnel and Payroll System (DAPPS). That
is entry into our computer system. So, we have roughly five
times as much applicant pool actively here as we need, so we
are very happy with how that has been going.
The other part we really emphasize is partnerships, local
community partnerships with trusted organizations, and national
partnerships. In terms of community partners, we have already
lined up and have working 321,496. In 2010, they had about
256,000, so that is quite a lot more.
Similarly, we hope to reach 900 national partners by the
1st of April, which is the key date. We already have 743
onboard.
In addition, we have worked with State and local
authorities to create for us complete count committees, and we
have now 10,833 complete count committees, including we have
State level complete count committees with 48 of the States. We
only lack two States, and those have peculiar reasons to those
two States.
So, I feel all those aspects are in pretty good hands, and
therefore, I feel quite comfortable that we will be able to
accomplish what we need to.
Senator Shelby. Thank you for that report. Thank you, Mr.
Chairman.
Senator Moran. Mr. Chairman, thank you.
We now recognize the Vice Chairman of the full committee.
Senator Leahy, honored by your presence.
Senator Leahy. Well, thank you very much. I am glad we are
having this. I am glad Secretary Ross has come back here.
I hope you are going to be more honest with the
subcommittee today than you were when I last spoke to you when
you were before this panel about 2 years ago in 2018. I asked
you when you testified here in May 2018 why the Trump Justice
Department would suddenly ask you to include a citizenship
question on the Census to enforce voting rights. You deflected
my answer. You testified, well, the Justice Department is the
one who made the request of us. You then testified before the
House that your Department was responding solely to the Justice
Department, which had initiated the request for the citizenship
question.
Now, your statements were totally false. There is now an
avalanche of evidence showing that you repeatedly pressured
both a reluctant Justice Department and Census Bureau for
nearly a year to support adding the question. In May of 2017,
you told an aide that you were ``mystified why nothing has been
done in response to my months-old request that we include the
citizenship question.''
After you were told that the Justice Department refused
your request, you personally discussed it with Attorney General
Sessions and the Justice Department finally relented and asked
for this question. Now, you left every single Member, Democrats
and Republicans alike, on this subcommittee with the distinct
impression that your Department had absolutely nothing to do
with the origins of the citizenship question or the voting
rights pretext.
So, my questions are, why did you mislead the subcommittee,
and why haven't you corrected that falsehood for the record?
Secretary Ross. My statements were correct then, they were
true then, they are correct now, and they are true now.
Senator Leahy. Every bit of the evidence that we have seen
shows that they were not true, and everything that we have seen
from the Justice Department and everybody else is they were not
true.
In early 2017, you were in touch with Steve Bannon and Kris
Kobach about the question and you were told it is important for
redistricting. Adding the question became a priority for you.
I am going to repeat the question I asked you 2 years ago.
Where did the push for adding the citizenship question come
from? Specifically, who was the first person to push you to add
this question?
Secretary Ross. I am sorry. Who was the first person?
Senator Leahy. To push you to add this question.
Secretary Ross. I don't know that any--well, I don't know
that anyone pushed me to add the question itself. My
conversations with people in the executive branch are
privileged and are subject to the constraints of that
privilege, so----
Senator Leahy. I am basing this on your answer the last
time, which was on the record. You said that you were not the
one to initiate this.
Secretary Ross. I did not. The fact is the Justice
Department did make the request. We then----
Senator Leahy. After you pushed----
Secretary Ross [continuing]. Started a very elaborate
process of examining the request. We have filed publically the
process that we used, the bases on which we came--I came to the
conclusion that I did. Those are all a matter of public record.
Senator Leahy. Well, the matter of public record is the
questions that you did not answer correctly the last time. I
had asked you what privilege exists with Kris Kobach, for
example. There is no executive privilege there.
Secretary Ross. Kris Kobach is certainly not part of the
executive branch. All that he asked for was that I take a phone
call and listen to what he had to say. I did. He requested that
we add a whole bunch of questions to the Census, none of which
we added.
Senator Leahy. So, Mr. Secretary, I don't think you are any
more forthcoming than you were the last time. I know when the
Supreme Court struck down adding this question, Chief Justice
Roberts called your justification contrived.
I notice my time is closing. I will ask you, a month ago I
saw you interviewed during a Fox Business interview that the
Coronavirus is good for American businesses. Senator Shelby and
I will have on the floor in a few minutes the--our bill to
dramatically increase the amount of money the administration
has asked for on Coronavirus.
Do you still believe Coronavirus is good for American
businesses?
Secretary Ross. Well, that--those quotes were taken out of
context. This was an interview that I had with Maria Bartiromo,
and her question was about the longer-term impact that it would
have. I began my response by saying that nobody wants to do a
victory dance over a deadly virus such as this. But, I went on
to add that the supply chains will be re-examined, and in fact
are being re-examined, as a result of it. So, I am afraid the
excerpt that you cited is totally out of context and is not a
complete version of what I actually said, sir.
Senator Leahy. I note that the market is now down 700
points, but go ahead.
Senator Moran. Mr. Leahy, thank you. Recognize Senator
Kennedy.
Senator Kennedy. Thank you, Mr. Chairman, and thank you Mr.
Secretary for being here today.
Mr. Secretary, I want to talk to you about the seagoing
fleet of NOAA.
Secretary Ross. Yes, sir.
Senator Kennedy. Its days at sea are down because the ships
are old.
NOAA SHIP FLEET
Secretary Ross. Yes, sir.
Senator Kennedy. And they are falling apart. And, we spend
more and more money trying to maintain them, and they fall
apart faster and faster and faster. This Congress and the last
Congress, and I think the one before, has appropriated about
375 million hard-earned, precious, taxpayer dollars to build
new ships. Those ships have not been built. I understand it
takes time.
In the meantime, while we are building the ships, would it
not be prudent for NOAA to think about leasing some seagoing
vessels from the private sector so NOAA can accomplish its
purpose?
Secretary Ross. That is a very interesting suggestion,
Senator Kennedy. I will take it up with NOAA and see whether
there is a way that we can do that.
Senator Kennedy. I would like to come see you, Mr.
Secretary. Maybe you could--the three of us, the head of NOAA
and you and me, I will buy us all a cup of coffee, and we can
sit down and talk about this. Because even if we start building
those ships tomorrow, it is going to take a while. And, in the
meantime, our current vessels keep breaking down faster and
faster and faster and faster, and there is an easy solution to
this, unless you think there is no longer a need for NOAA, and
I don't think that.
Secretary Ross. No. To the contrary, Senator.
Senator Kennedy. Right. I do, too.
Secretary Ross. Well, as I say, I would be delighted to set
up a session for you and me with NOAA, and let's have a real
discussion of this concept.
Senator Kennedy. Great. Thank you, sir.
I want to ask you a philosophical question that--and I want
you to forget about the politics and forget about the
disagreements that we in Congress have had over legal and
illegal immigration.
The purpose of a census, as I under--let me ask you this,
Mr. Secretary. Does every country conduct a census, every
Organization for Economic Cooperation and Development (OECD)
country conduct a census?
CENSUS QUESTION REGARDING CITIZENSHIP
Secretary Ross. I think pretty much everyone does. I am not
sure. There may be some outlier that doesn't.
Senator Kennedy. Right.
Secretary Ross. But, generally, countries do conduct a
census, yes, sir.
Senator Kennedy. My understanding is that most countries
that do--well, all the countries that do conduct a census, they
want to know the number of people in their country; they want
to know where they live; they want to know who they are; do you
have more men than women, for example; do--who is a naturalized
citizen; who is a citizen who was born into the country; who is
applying for citizenship; who is in your country illegally, if
people are willing to report that status.
What is wrong philosophically, putting the politics aside,
with asking the question? It seems logical to me. Are you a
citizen or not?
Secretary Ross. Well, many countries I am aware do ask one
version or another of the citizenship question. Those include
Canada, Mexico, United Kingdom, Ireland, Indonesia, France, and
Germany. So, it is not at all an uncommon question, nor is it
uncommon that it was asked historically in the United States.
Senator Kennedy. We did it for a long time, did we?
Secretary Ross. Yes, sir.
Senator Kennedy. Why did we stop doing it?
Secretary Ross. Well, that, I don't know. That precedes
me--even though I have been here several years that greatly
preceded my arrival here, sir.
Senator Kennedy. Thank you, Mr. Chairman.
Senator Moran. Senator Kennedy, thank you. Senator Schatz.
Senator Schatz. Thank you, Mr. Chairman, and thank you, Mr.
Secretary.
Following up on the Census, I will not reiterate what
Senator Leahy said, but I would be remiss if I didn't say to
you that we do feel misled by your testimony regarding the
Census and the citizenship question. And, because it was
resolved by the Court, I am prepared to move on. Because the
Census Bureau has a very competent director, I am prepared to
move on. And, because I think the most important thing that
happens next is the administration of the Census, I am prepared
to move on.
But, I do feel like I don't want to move on without at
least stating for the record that there is a contradiction
between what you told us and what eventually appeared through
the court proceedings.
But, here is the question. And, this is really important
because a large percentage of the people who live in the United
States still think there will be a citizenship question on the
Census. And, so, as the Secretary of Commerce, will there be a
citizenship question on the Census?
Secretary Ross. No, sir.
Senator Schatz. Thank you.
Under Federal law, census data is confidential and
protected; correct?
Secretary Ross. Yes, sir. Every Census employee, including
me, takes an oath, a lifetime oath, not to disclose the
personal data. And, if someone is convicted of having done so,
there are both monetary penalties and the prospect of time in
jail.
Senator Schatz. And any identifiable information about a
person, household, or business will never be shared with
another Government agency, law enforcement, or court; is that
correct?
Secretary Ross. That is correct, sir.
Senator Schatz. And under Federal law, information
collected may only be used for statistical purposes and no
other purposes?
Secretary Ross. Correct, sir.
Senator Schatz. Thank you.
CORONAVIRUS
I want to talk to you a little bit about Coronavirus. As
you know, we have a lot of NOAA Corps members who are co-
located with the Navy at the Joint Bases Pearl Harbor-Hickam.
Lots of us have Department of Commerce employees generally, and
NOAA employees in particular, and I am thinking about NOAA in
particular because of their--because, to the extent that they
are underway, they end up in very, very close quarters.
So, have you issued formal guidance? Are you allowing the
issuance of formal guidance in terms of the safety and security
and health of Department of Commerce employees? And, if so, can
we see it?
Secretary Ross. Well, the various departments within
Commerce each have a different relationship to this potential
problem. You are certainly correct in saying that NOAA has an
individual problem of people being confined to a very small
area on a vessel for long times.
We have been trying to follow the advice issued by the
health authorities, which, as I understand it, largely request
that people be very careful about washing hands, either using
the chemical detergents or using a lot of hot water and soap.
As far as I know, that is the best effort that one can do for
prevention.
Senator Schatz. I would just ask you to follow up on the
specific question of whether guidance is being provided to NOAA
Corps members. And, my understanding is there are a lot of
anxious employees within the Department who want to know
specifically what they ought to do, not just the sort of
general hygiene stuff, which I--I would certainly hope by this
time, everybody knows don't touch your face and wash your hands
regularly.
Secretary Ross. Right.
Senator Schatz. But there are additional pieces of guidance
that are specific to the jobs that they are doing. And, to the
extent that that guidance is not being allowed to go out, I
would like you to follow up on that.
Secretary Ross. Well, I am certainly not prohibiting any
guidance to go out from NOAA, and I will be happy to have staff
either of NOAA or of any of the other parts of Commerce brief
you in detail on what they individually are doing.
Senator Schatz. It would suffice if you just send me what
they are--what is being sent out.
I want to talk to you about scientific integrity. In your
first----
Secretary Ross. About--I'm sorry?
Senator Schatz. Scientific integrity. In your confirmation
hearing, I remember what you said. You said the science is the
science. And, then we had this Hurricane Dorian incident, which
I will not chew up my last 15 seconds on, but I want your
commitment to cooperate with NOAA's Scientific Integrity
Division on the investigation into the Hurricane Dorian
incident.
Secretary Ross. Certainly. I definitely commit to cooperate
with any investigations. And, just to reiterate, I meant what I
said in the confirmation hearing, and I have not interfered
with any report that any scientist has prepared, whether it is
on climate or it is just on----
Senator Schatz. See, I believe you, Mr. Secretary. I
believe you have not personally interfered. I think there are
some instances in which you may have inadvertently allowed the
interference to occur below the level of Secretary, and so I
just ask you to supervise that question. And, if I turn out to
be wrong, then I would be pleased to be wrong, but it is not--I
am not totally persuaded that up and down the chain at the
leadership level that everybody shares your view on scientific
integrity.
My time is up. Thank you.
Senator Moran.
Senator Collins.
Senator Collins. Thank you, Mr. Chairman.
Secretary Ross, first let me thank you for your taking the
time to discuss with me some issues that are so important to my
State. Maine's lobstermen and women have always been great
stewards of the resource and leaders in protecting our oceans.
In addition to implementing measures to ensure a strong
lobster stock for decades to come, the Maine lobster industry
has also taken multiple actions to prevent gear interactions
with marine mammals. This includes the replacement of 27,000
miles of floating ground line with whale-safe sinking line in
2009, and vertical line rules that removed 2,700 miles of buoy
line in 2014. So, it is not as if the industry hasn't revised
its gear, spent a lot of money, and done its part.
And, notably, and this is important, there have been no
entanglements directly attributed to Maine lobster gear in more
than 15 years when it comes to the right whale.
Despite these effective previous measures and data
indicating that ship strikes and Canadian fishing activities
are major contributors to right whale mortalities, the Maine
lobster industry, in our view, is being unfairly targeted by
NOAA's proposed regulations. And, very troubling, some of the
proposed regulations would actually pose safety risks to our
lobstermen and women.
As NOAA works with the industry to protect this fragile
species, it must do so without endangering human lives or
livelihoods, and that is why in last year's report, specific
language was included. It goes on at considerable length, but I
just want to read one line that says, ``NOAA shall fully
evaluate the feasibility and economic implications of any
management actions relating to the North Atlantic right
whale.''
So, today I am going to ask you, are you committed to
following the direction that was provided by this subcommittee
last year; and to ensuring that the rules that NOAA recommends
are done in consultation with the lobster industry, with the
regulators in Maine and throughout the region; and that they
are equitable and safe and don't place the burden on an
industry that is not responsible for this state of this fragile
marine mammal?
NOAA COLLABORATION WITH MAINE LOBSTER COMMUNITY
Secretary Ross. I not only commit to future collaboration,
we already have been collaborating with the fishing community
and with the States and with all the other interested parties.
One of the complications is what you pointed out, which is
a lot of the problem actually occurs in Canadian waters. We do
not have regulatory authority over those waters. We have,
however, been negotiating with them. As recently as the
beginning of this week, we got a new proposal from them, which,
on its face, seems more promising than what we had before.
A lot of the ship strikes occur in the St. Lawrence Seaway,
and that has been a big focus. And, the subtopic of that is
when do you have the vessels slow down what they are doing?
When do you not permit the vessels into those key areas where
the female whales are domiciled. So, there are a lot of very
technical issues that we are trying to sort out.
On the safety issue for the lobstermen, we understand that
as you add additional traps to an individual line, it creates a
potential hazard for the people as they--fishermen as they
retrieve the traps. We are keenly aware of that, and that is
one of the many factors that we will take into account as we
try to go forward with resolving these very serious issues.
Fishing, in general, involves a lot of tradeoffs because
there are competing interests at stake, and, so, our task is to
try to balance them.
Senator Collins. I thank you, Mr. Secretary. Tomorrow night
is the annual Maine's Fishermen Forum. I go every year, and
believe me, this will be a topic that--of great concern. I have
met with the industry many times, but this is the one time of
year when they are all gathered together. Not only the lobster
industry, but our fishermen, as well.
Mr. Chairman, I would ask unanimous consent. I have a
number of other questions on EDA, which Senator Shaheen's views
I share on, on the Sea Grant Program, and on the gray zone
between Canada and the United States where there is this feud
over who owns the water and thus whose regulations should apply
that I would like to submit for the record. And, I thank the
Secretary for his response.
Senator Moran. Without objection. Mr. Secretary, please
make certain you answer Senator Collins' questions.
Secretary Ross. We will, sir.
Senator Collins. Thank you.
Senator Moran. Thank you. Senator Coons.
Senator Coons. Thank you, Chairman Moran. Thank you,
Secretary Ross. I have four topics I would like to get to in
the 5 minutes we have, if I could.
First, Manufacturing USA is a strategy and now a network of
14 public-private partnerships across our Country, created to
ensure advanced manufacturing thrives in the United States,
something I have enthusiastically advocated for.
As I am sure you know, the one institute sponsored by
Commerce actually has its headquarters in Newark, Delaware. It
is the National Institute for Innovation in Manufacturing
Biopharmaceuticals. In the middle of our response to the
Coronavirus, this institute is particularly relevant as it is
helping to develop more efficient, more modern means for
manufacturing things like vaccines and biodefense measures.
So, it is leveraged roughly two to one. It is Federal
investment. It has a nationwide network of the leading pharma
and bio companies and research at universities, yet I was
struck that the proposed budget eliminates funding for the
National Institute for Innovation in Manufacturing
Biopharmaceuticals (NIIMBL).
Let me just assert that it is my hope that that is because
the bill signed into law by President Trump late last year, the
Global Leadership and Advanced Manufacturing, or GLAM, Act,
which reauthorizes funding and encourages Commerce to stand up
new institutes may have been signed after your budget was
finalized.
So, please, if you would, first tell me about your plans
and how you might be adjusting your plans for funding for
NIIMBL; and tell me how you see the value of Manufacturing USA
and how we might work together to ensure you have the resources
to deliver on this promising opportunity for the Department of
Commerce.
NIST AND MANUFACTURING USA
Secretary Ross. Well, I am very much pro Manufacturing USA.
And, in fact, NIST is requesting $25.3 million in this budget
for fiscal year 2021. That is an increase of $9.3 million over
the prior year. And, the reason for that is to coordinate the
institute network----
Senator Coons. Right.
Secretary Ross [continuing]. And to fund an open
competition to select a new Manufacturing USA Institute. So, we
are trying our best to be supportive of the concept of
Manufacturing USA.
Senator Coons. Thank you, Mr. Secretary. The specific--and
I look forward to working with you and your Department on that.
The specific point I wanted to emphasize was just that the
budget proposes eliminating funding for the one current
Department of Commerce NIST-funded and directed Manufacturing
USA Institute, which, given the COVID-19 or the Coronavirus
crisis, strikes me as a particularly relevant institute to
continue. And, the statute that authorizes its extension was
signed into law by the President just at the end of the last
year. I look forward to following up with you and the
Department on this.
Let me move to the MEP Program. MEP is the Manufacturing
Extension Partnership. It is something that I have seen on the
ground in Delaware, in my own manufacturing experience, and
then in local government its value. Actually, your predecessor
joined me in a visit to a Delaware company, Accudyne Systems,
which is a custom machine builder producing composite
automation equipment. The Delaware MEP helped them get their
ISO certification. And, the commercial service just yesterday
highlighted Accudyne for its $2 million worth of new export
sales, export sales the MEP was essential to ensuring.
Can I just ask if you are willing to reconsider the
Department's position of eliminating the MEP, something I think
has been a low-cost, high-impact support for manufacturing in
the United States?
MEP
Secretary Ross. Well, two things, Senator. One, the MEP
Program obviously does do good work. There is no question
whatsoever about that. But, the unfortunate thing is that the
fiscal year 2021 budget does have some constraints. The budget
supports the broad administration goals of promoting national
security, public safety, economic growth, and job creation.
But, given the need to prioritize funding, the Commerce budget
requires difficult decisions----
Senator Coons. I understand.
Secretary Ross [continuing]. To maintain our core
activities, and this is unfortunately one of them.
Senator Coons. So, let me----
Secretary Ross. We hope, sir, that it will be supported by
local- and State-level people. There is considerable local- and
State-level support.
Senator Coons. I know.
Secretary Ross. We hope that will continue.
Senator Coons. Mr. Secretary, in the minute I have
remaining, I am going to ask two more questions with the
Chair's forbearance.
We had that exact exchange last year. I will do my best to
ensure there is Federal match for the MEP Program because, in
my experience, the local support doesn't meet the need and the
promise. I appreciate your comment that the MEP does good work.
Senator Wicker and I have worked to pass a law that was
signed by the President in December to strengthen enforcement
against illegal and unregulated fishing, a concern to all of us
who are coastal States with strong fishing communities. I saw
no specific investment in the Department of Commerce's budget
that would support NOAA's work to combat illegal, unreported,
and unregulated fishing, and I would appreciate some follow-up
from your office on that.
And last, let me just join Senators Shaheen and Collins. I
think they mentioned this in passing. But, we all have Sea
Grant beneficiaries. NOAA's Sea Grant College Program, which
has long enjoyed strong bipartisan support, focuses on the
practical use of coastal and ocean resources. In my State, Sea
Grant works closely with communities to enhance our oyster
aquaculture industry, which is critical to improving the health
of the inland bays.
I am going to fight hard for the funding for the Sea Grant
Program. And, I recognize it has long enjoyed bipartisan
support, so it is my hope that when we appropriate for it, it
will be fully implemented.
AQUACULTURE
Secretary Ross. Well, as to aquaculture, we have made a
specific request for some increased funding to promote
aquaculture. Aquaculture, I think, is a very important solution
to lots of things. For one thing, we have a trade deficit in
seafood, which strikes me as bizarre given the wonderful amount
of oceanfront that we have. So, I am a very strong proponent of
aquaculture and intend to continue to be.
Senator Coons. Thank you, Mr. Secretary. These two points
connect. To the extent we have IUU, or illegal, unreported,
unregulated pirate fishing off our coasts and off other coasts
around the world, that contributes to that export into the
United States of cheap seafood.
I appreciate your answers, and I appreciate the Chairman's
forbearance.
Senator Moran. Senator Capito.
Senator Capito. Thank you, Mr. Chairman. Thank you, Mr.
Secretary, for being here.
I understand this topic has been addressed, so I wanted to
make a quick statement of my vigorous support for the Economic
Development Administration, the EDA. Funds that have come to
West Virginia, particularly in this administration, have been
exceedingly helpful, have expanded our abilities to expand our
infrastructure and create jobs, and particularly in rural areas
where it is very difficult to raise capital.
We had Dr. John Fleming just recently in Putnam County, and
he announced several millions of dollars of investment in our
State that we now see expanding into that job creation. So, I
just wanted to get that on the record with you.
My question is totally different. It is on the topic of
importing aluminum. We have large----
IMPORTING ALUMINUM
Secretary Ross. I'm sorry. On the topic of?
Senator Capito. Importing aluminum. We have a large
aluminum producing--that uses aluminum and produces products
from that. There was a trade remedy in 2019, which helped with
the trade imbalance with China, but we are seeing that aluminum
flat rolled products, actually the import is up.
In your budget, you have recommended an Aluminum Import
Monitoring Program within the ITA. And, I was wondering, with
this new program, how will the Department be able to monitor
the aluminum imports, to spot the bad actors, and identify
problem areas?
Secretary Ross. Surely. Well, a couple of things. We
earlier initiated a steel monitoring activity. That has proven
very, very helpful to the steel industry because what it
essentially allows is earlier identification of problems so
that we can try to get after them. I believe the aluminum
monitoring will accomplish very much the same purpose.
Second, earlier this year, the President accepted my
recommendation about prohibitions on derivative products,
namely products, both steel and aluminum, that really are
circumvention of our basic tower of structure in that all they
do is add a minor feature to what is essentially flat rolled
sheet or coil or some other product. And, then, since that
technically puts it on a new Harmonized Tariff Schedule (HTS),
then they bring it in. So, we have gone after several, most
notably aluminum cable and wire, which had been one of the big
violators in our view of the circumvention.
Senator Capito. Well, thank you. I would encourage you
also, and I am sure you are as you are developing this, to work
with the manufacturers who use these products obviously to
develop the best ways to go about this.
Secretary Ross. The good news is the tariffs for aluminum
have increased the operating rate from 43 percent of capacity
to 62 percent of capacity. It is not up to where we want it to
be. We want to get it up to 80 percent. But, at least
directionally, that is a pretty big percentage increase in the
utilization of the aluminum facilities.
Senator Capito. Well, we have 2,000 workers in Jackson
County in West Virginia, which are very dependent on this.
My second question is, as the Federal Government moves
towards shifting to the cloud, data to the cloud, NOAA and
other components have a mission that requires a hard iron
infrastructure. And, so, can you speak to the significance of
this hardwire capability to our weather forecasting? We have a
NOAA facility in West Virginia.
NOAA--WEATHER FORECASTING
Secretary Ross. Well, there are myriad initiatives underway
at NOAA to improve the weather forecasting. I would be
delighted to set up a session for you and your staff with NOAA
and myself to get into the details. It gets highly technical
very, very quickly, so I think that would be the most useful
way to respond to that question, Senator.
Senator Capito. Alright. I look forward to that.
Last question is on the broadband map. I think many of us
sitting around, we have been in various committees talking
about the inaccuracies of our broadband map. The NTIA was
provided $7.5 million to help us with developing served and
unserved areas to make sure that this is granular data and that
it is accurate. Do you have any comments on how that process is
moving forward?
NTIA: BROADBAND MAPPING
Secretary Ross. Yes. Two things: One, we have made great
progress in launching the map that you are referring to. We
entered into a contract to secure geographic information system
platform that will allow NTIA to take datasets from outside
vendors and incorporate those into its own internal activities.
That should permit NTIA to implement a secure, cloud-based
approach to this problem. And, so, we are very optimistic.
Second, NTIA has entered into data sharing partnerships
with 13 States: California, Maine, Massachusetts, North
Carolina, Tennessee, Utah, Virginia, and I am happy to add,
West Virginia.
Senator Capito. Great. Good. Good. Well, I would just
encourage anything we can do on that to make it more accurate.
We found that if you only resolve--only rely on the suppliers,
you are not going to get accurate data. It has to be an all-in
kind of proposition, which is I think the direction you are
moving.
Thank you so much.
Senator Moran. Senator Reed.
Senator Reed. Thank you, Mr. Chairman, and thank you Mr.
Secretary for joining us today.
Let me begin by thanking Chairman Moran and Senator Shaheen
for putting in last year's appropriations bill $40 million for
NOAA construction. As we all understand, NOAA, like every other
agency, has significant infrastructure needs.
And let me continue by thanking you, Mr. Secretary, because
I--you and the NOAA leadership have prioritized the
construction of a multi-phase project for NOAA ships and
related assets at Naval Station Newport in Rhode Island, and I
want to make sure it stays on track. I received a letter this
morning from Dr. Jacobs that NOAA will be committing the first
$22 million to this important project, and I understand that
increased cost may somewhat be reflected in the timeline.
I received a schedule last February 5th from the Navy that
showed and indicated that NOAA will provide the necessary
design funds on April 9, 2020 with a projected design kickoff
on April 22, and the expectation is that the contract for the
construction of phase one of the project will be awarded later
in calendar year 2020.
Can you confirm that this timeline is still on track?
NOAA: NEWPORT, RHODE ISLAND NAVAL STATION
Secretary Ross. To the best of my knowledge, yes, Senator.
Senator Reed. Thank you, Mr. Secretary.
Secretary Ross. Let me--NOAA is quite excited about it.
They are continuing to work with the Navy to move the project
into the next phase, and they will complete all Federal
permitting because some of that is needed in State approvals
preparing for construction in fiscal year 2021 using the funds
that were provided in fiscal year 2020.
Senator Reed. Well, thank you very much, Mr. Secretary, and
thank you for your support of this effort, too. I deeply
appreciate it.
Let me turn to an unrelated question, and that is the
Census. Again, I have to thank the Chair and the Ranking Member
because there was important language that was put in the Census
that would ask for specific outreach and targeting in
Providence County, Rhode Island. Providence----
CENSUS IN PROVIDENCE COUNTY, RHODE ISLAND
Secretary Ross. How we can target what, sir?
Senator Reed. Specific outreach and targeting to the
population in Providence County, Rhode Island.
And, I will tell you what you already know, Mr. Secretary.
There was one end-to-end test last year of the Census to get
all the bugs out, hopefully. That was in Providence County,
Rhode Island, the only place in the Nation.
Because Rhode Island is a place of modest size, I have to
put it in perspective. The population of Providence County is
638,000 people. The population of Rhode Island is about a
million, so two-thirds of our State was in this end-to-end
test.
What happened is we were getting--feedback is that many
people feel they have already filled out the Census, that all
of this stuff is just extra. And, what we have asked is that
the Department sort of reach out specifically to this one
county and say, no, you didn't fill out the Census. You have to
fill out the--you have to go and fill it out, et cetera.
And, if you could, update me on these efforts. We did send
a letter in January. We are still waiting for a response. But,
could you update me? It would be good if you could do that.
And, also, are we doing this in languages other than
English? Because Providence County is also a place which is not
unusual in the United States of multilingual.
Secretary Ross. Well, first of all, the end-to-end test
that we ran in Providence was a great success. It proved out
the systems. It proved out the--a lot of things that we needed,
so we are very happy with the cooperation of the local
authorities.
As to ads, we are running ads right now, digital and print,
in English and in Spanish, and in radio. In the case of radio,
we are doing English, Spanish, and Portuguese. So, we are
trying very hard to make the proper communication. I will make
sure that they do emphasize, and I would hope you would
emphasize in communication with your constituents, that this
was just a test that they participated in last year.
And, I must say, the response rates were very good. It was
a very cooperative community, including relatively good
cooperation in the difficult to enumerate part of it. So, we
will do the best we can to overcome their thinking that they
might already have filled it out.
That is the problem with testing. You do a test. You want
it to look like a real-world test because if it doesn't, you
are not going to get reliable data. It can cause a little bit
of confusion. Fortunately, it is just localized in that one
area, so we will try our best to deal with it.
Senator Reed. And we will get back to you, Mr. Chairman, if
we see continued sort of difficulties in this area. And let me
conclude by saying thank you, gracias obrigado.
Secretary Ross. Thank you, Senator.
Senator Moran. Senator, thank you.
I will recognize the Senator from Alaska, but I am
expressing my sympathies to the Senator from Maryland, who
keeps getting preempted.
The Senator from Alaska.
Secretary Ross. Mr. Chairman, might this be a good time to
take a break? We have been at it a little bit over an hour.
And, from a human point of view, I would very much appreciate--
--
Senator Moran. You are very discrete in your request, and
it will be granted.
The committee will stand in recess for 5 minutes.
[Recess.]
Senator Moran. The subcommittee will reconvene, and I now
recognize the senator from Alaska.
Senator Murkowski. Thank you, Mr. Chairman.
Mr. Secretary, welcome. Thank you for all that you do. I
want to give a special thanks for the shoreline mapping that we
are seeing coming out of the Department. Your support for this
mapping on the shoreline and nearshore is appreciated. We
recognize the value of the President's memorandum on mapping.
I also want to thank you for the Department's recent work
on the disaster funds for the two fisheries disasters that we
have seen. It is important to us. And, as you know, there is
more in that pipeline.
When we first met some years back, I promised you that you
were going to think of fishing when you visited with me, and I
am not going to disappoint you today. As I have looked through
my seven priorities here for the Department of Commerce, six of
those relate to fisheries or to our oceans.
So, let me begin with funding for fisheries surveys. You
know the significance of the fisheries in my State. The
National Marine Fisheries Service (NMFS) relies on annual
surveys that are conducted by regional science centers to
determine sustainable harvest levels. We have heard continued
concerns that surveys are at risk due to do budget pressures.
My concern has always been that NOAA should not be put in a
situation where they have to choose between personnel and
survey funding. NOAA should not have to make the tradeoffs,
effectively, that jeopardize the core mission of managing our
fisheries and supporting our U.S. seafood producers.
So, question for you about the surveys and how NOAA plans
to accurately survey and, I guess, more broadly, why the agency
is not requesting the funds that it needs for such a key part
of its mission. Because if you don't have accurate surveys, you
don't have sustainably managed fisheries.
NOAA--FISHERIES AND SURVEYS
Secretary Ross. Well, we certainly agree that we need
accurate surveys in order to have accurate regulation of the
fisheries.
I think you are aware that, for example, in terms of the
Pacific Salmon Treaty Agreement, there are quite a few very
specific items that we have requested funding for. Those
include $10 million in base grants for fishery sampling and
monitoring, for spawning estimates, and for assessing fishery
exploitation rates; $2 million in grants to the States and
Tribes in order to support the Coded Wire Tag Program, which
provides some essential information on harvest rates for
Chinook and Coho stocks managed under the treaty; another $2
million for conservation for Puget Sound Critical Stocks to
preserve at-risk Puget Sound Chinook stocks through the ongoing
implementation of State and Tribal hatchery conservation;
another $2 million for the conservation of Puget Sound Critical
Stocks to preserve at-risk Puget Sound Chinook stocks through
the ongoing implementation of the program.
Senator Murkowski. Mr. Secretary, if I can stop you there
because we have seen what will be required under this treaty,
and it is substantial. It is significant. And, unfortunately,
the request underfunds.
Now, last year, there was an issue because we did not have
a clear picture of what would actually be needed to support the
treaty agreement. And, now that we have a more clear picture,
we are still seeing that it is far less than is needed for
implementation of the Pacific Salmon Treaty.
So, it seems to me, we have an issue here where we need to
ensure that NOAA is prioritizing the funding when the--because
the Federal Government agreed to the obligations included in
the treaty agreement. So, if we don't put the funding to allow
for the full implementation, effectively what we end up doing
is shirking our diplomatic responsibility to support this
bilateral treaty that we have entered into with Canada.
So, my fear is that if we don't have that adequate support
on the Federal side, you have States that are effectively
expected to implement this Federal treaty without the funding.
Alaska has seen this situation before, so I just--I ask you
and your team to look critically at the treaty, the
requirements, what we know to fulfill that. And, again, work
with us not only on the Pacific Salmon Treaty, but the
imperative-for-the-fisheries surveys outside of what we are
talking about with Pacific Salmon Treaty because that is
completely another issue.
So, you will hear me continue to enforce and reinforce the
strength of our sustainably managed fisheries, but we are so
reliant on NOAA. We are so reliant on NMFS. We are so reliant
on making sure that we have accurate data.
Thank you, Mr. Chairman. My time is expired.
Senator Moran. Thank you, Senator.
Senator Van Hollen.
Senator Van Hollen. Thank you, Mr. Chairman, and thank you,
Mr. Secretary. One of the benefits of going last is I get to
check off a lot of the questions I had as my colleagues have
asked them on a bipartisan basis, although I do want to
underscore a couple points they have made.
I share the concerns expressed about some of the cuts in
the NOAA budget.
With respect to the EDA, I strongly share the views of my
colleagues. Senator Shaheen mentioned your own Tweet in support
of it. I have pointed out before that the President's daughter,
Ivanka Trump, appeared in Baltimore a number of years ago to
celebrate a successful EDA project. So, there is this
disconnect between the positive statements made by the
Administration for EDA and the budget, but I think we are going
to address that on a bipartisan basis.
I also want to express my concerns about the 76 percent cut
in the Minority Business Development Agency.
Now onto some areas of agreement. I know we share an
interest in making sure the United States remains at the
cutting edge in key competitive technologies, and I think we
share a concern that if we don't have a plan and a strategy, we
will fall behind. After all, China has its 2025 plan, and they
say they want to dominate in certain technology areas,
including artificial intelligence, many others, including
quantum computing.
So, the good news I see in this budget is you have
increased the funding for AI.
Secretary Ross. Yes, sir.
Senator Van Hollen. When it comes to quantum computing in
the NIST budget, it has flatlined. I know the administration
has increased it in some other areas, but Congress, on a
bipartisan basis, doubled the authorization for quantum
computing at NIST and did it very deliberately because we think
this needs to be something where we increase our investments
across the board. So, I would like to work with you and the
committee to get that investment in quantum computing at NIST
up to the authorized level going forward.
On another part of your jurisdiction, I think you have been
appropriately aggressive in terms of trying to prevent Chinese
companies from taking advantage of technology theft over the
years and taking advantage of unfair trade practices. In fact,
I think you have been appropriately aggressive and sometimes
other parts of the administration have actually, you know,
reigned in the Department of Commerce's recommendations.
On that score, could you update me on the Wall Street
Journal article from a few weeks ago saying, ``U.S. Weighs New
Move to Limit China's Access to Chip Technology''; subheading,
``Trump administration targets Huawei with proposed changes to
restrict use of American chip-making equipment,'' specifically
semiconductors.
And, on a related matter, a number of U.S. companies have
been--and other companies have been finding ways to sell
equipment to Huawei without running afoul of the Department of
Commerce's penalties, especially--and I know you have thought
of changing the rule so that it is not a 25 percent U.S.
content based, but 10 percent content based.
So, I am concerned--I support the direction your Department
seems to be taking. It seems other parts of the Administration
are rowing in a different direction. Could you bring us up to
date on that?
TRADE PRACTICES
Secretary Ross. Well, there is always--on almost any trade
issue, there is a lively interchange within people in the
administration. I think that is good and not bad because at the
end of the day, it is the President who sets policy, and it is
important for him to hear all sides of it.
As to Huawei itself, I think it is quite clear in my view
that they do pose genuine security threats both to us and to
any other country that uses them. And, so, I intend to continue
to try to implement those views.
As to the Wall Street Journal article, if I recall it
correctly, it was the usual stuff of unidentified sources,
people close to, all this business.
Senator Van Hollen. Mr. Secretary, just on that, it
actually gave you credit for pushing forward on this issue,
whether you want it or not, or whether they support it or not.
But----
Secretary Ross. I am pushing forward.
Senator Van Hollen. So, I am hoping you are winning this
debate in the administration. But, let me just say, in terms of
our overall national strategy and winning the debate on Huawei,
I was at the Munich conference this year. Senator Shaheen was
there--well, actually didn't make it this year. But, just in
terms of our overall strategy--and the Chairman mentioned
Section 232 earlier.
Secretary Ross. Right.
Senator Van Hollen. As you know, a lot of us on this
subcommittee and in the Senate have concerns which--with the
way 232 has been applied, okay, in terms of, you know, claims
that these measures are taken for national security reasons
when a lot of us are skeptical.
But, here is my overall point. When you go to Munich
conference, and we, as a Country, are trying to get Germany and
the U.K. and others to support us with our strategy with
respect to Huawei and others, it is a lot harder to get their
cooperation on those issues when we are threatening to beat
them with a stick with Section 232 on the other. And, I just
think we would be much better off and more successful in
keeping our eye on the main goal here, which is making sure
that we don't get ripped off by China's unfair trade practices
and technology theft in this area, if we were to provide a
united front across the array of issues with our European
partners.
Secretary Ross. Well, I believe, sir, that even allies have
to obey the rules, and if people disobey the rules, we intend
to enforce against them.
Senator Van Hollen. You are not going to get a dispute
there, but I would argue strongly, and I think on a bipartisan
basis, there is a strong argument that the use of Section 232,
the way we have been using it, has been--if maybe in a very
legalistic sense, okay. It certainly was not the intent a lot
of us expected with respect to use of national security powers
by the President on trade issues.
Secretary Ross. Well, two things, Senator. One, I believe
that the 232, the presence of the steel and aluminum tariffs
and the threat of automotive tariffs helped in the negotiations
with China. I believe for sure they helped in the negotiations
with Japan. I believe they helped in the negotiations with
USMCA. So, I would hope that you would look at the end result
of the whole package of trade activities that we are doing
rather than isolate one portion of them. I think it is an
integrated whole.
Senator Van Hollen. If I may, Mr. Chairman, just for a
second.
Look, I think it is an integrated whole, but it seems to
me, in order to be successful, we need partners. And, I just
can tell you, you have heard this when our European allies say
that--we ask for cooperation on one front, and a very--I would
say one of the most important fronts with respect to Huawei and
this kind of critical technology. If we are holding a threat of
Section 232 or auto tariffs over their head, it is harder to
get their cooperation.
Anyway, I look forward to continuing the conversation, Mr.
Secretary.
Secretary Ross. Sure. Well, frankly, I think we have had
better cooperation with them on trade issues in general since
we began the 232s than we did before. For the first time ever,
three--on three separate occasions, E.U. has joined with Japan
and U.S. in written attacks on the intellectual property
policies of China. They never did that before.
Senator Van Hollen. So, are you satisfied with the U.K.'s
position on Huawei?
Secretary Ross. No. I think it is a mistake.
Senator Van Hollen. How about Germany's? A little better,
but still a mistake?
Secretary Ross. I am not a technologist, but the technology
experts tell me that 5G is not something that you can so
readily separate core from periphery. And, I also think that
the danger, in case they are wrong in their theory that they
can mitigate, the danger of shutting down your entire economy,
shutting down your entire government, is a risk that is not
worth taking.
Senator Van Hollen. And we agree on that. I just want to
make sure we are all aligned in terms of the strategy. Thank
you.
Senator Moran. You are welcome. Thank you, Senator.
Mr. Secretary, we are going to have another round of
questions, but the good news is that there is a vote scheduled
in 15, 16 minutes, so----
Secretary Ross. I will speak fast.
Senator Moran [continuing]. There is a finite time in which
this hearing will come to a conclusion.
I am going to try to get two questions in my 5 minutes, and
the first one is just to follow up on one I have already asked
you.
We talked about Section 232 Exclusion Process. I indicated
that my calculations, my staff's calculations, are that we are
going to spend roughly $18.5 million in that process in fiscal
year 2021, and I wanted you to tell me, to confirm, if you
would, that that is a sufficient amount to execute the policy
under Section 232 Exclusion.
SPACE COMMERCE
Secretary Ross. We believe it is, sir.
Senator Moran. Thank you.
I also want to talk about a priority. You visited with me
personally on the phone about this a year ago. I have had
conversations with General Raymond at Space Command regarding
this issue.
Your Department's fiscal year 2021 budget, this year's
budget, again proposes to combine two offices that are
currently a part of NOAA and establish an Office of Space
Commerce under the Secretary, within your office. We rejected
that last year, not because I am not sympathetic, but we think
some steps need to be taken, and there is some legislation
pending in authorizing committees that would change and
ultimately, among other things, create a Bureau of Space
Commerce. And, so, there is a few steps that I was thinking and
I still believe need to take place before this decision is
made.
But, one of the issues I have is I am not certain--I don't
understand why this new combined entity, while it seemingly has
value to me, why does it need to be in the Office of the
Secretary?
Secretary Ross. The reason is to elevate it and to send
both an internal and an external message that it is an
increasingly important, and frankly, increasingly urgent need.
You may be aware that within the last few weeks, there have
been two very, very near misses of satellites. One got within a
couple of hundred feet of a collision. There is a desperate
need for better space situational awareness and space traffic
management. That is the fundamental activity that Space
Directive 3 added to what we had.
In addition, elevating it to the Secretary level
facilitates cooperation between the Office of Space Commerce
and NIST. NIST, as you know, has an important mission of
standards, and especially standards involving international
cooperation.
There is no ability to regulate space traffic management
because it is an international thing. I believe elevating the
office will make it much easier for us to get the cooperation
of the European Space Agency, of the Australians, of the
Japanese, and all of the others, because we need their
cooperation. And, eventually, we need standards, hopefully very
quickly, so that everybody can understand rules of the road
that have been agreed.
It is an urgent need. It is an important need. And I hope
we don't wait until two satellites collide and cause more space
debris and more economic loss, which is what I am worried if we
keep postponing it, we will see.
Senator Moran. Thank you, Mr. Secretary. Let me ask you
about the money. In terms of that proposed office, you are
asking for a total of $15 million, which is $11 million above
that that was enacted.
What I have also been trying to determine is what it costs
DOD to perform their functions today in space situational
awareness, and maybe you can help me determine--we are trying
to calculate how much money is being spent today, and if we
move that amount of money to the Department of Commerce, you
have what you transfer. We didn't know what the amount is. We
cannot get an answer yet as to what it costs DOD to perform the
functions that would then be performed----
Secretary Ross. Right.
Senator Moran [continuing]. In your office.
Secretary Ross. I think, sir, the purpose of the transfer--
and I assume that General Raymond expressed to you his support
for our Department taking it over. We have actually already had
a fellow out at Vandenberg for quite a few months trying to get
arms around it, and I spent time at Vandenberg myself. So, I
think you will find that General Raymond, General Hayden, and
General Whiting all are supportive of what we are recommending.
In addition, the National Space Council is unanimously in
support. So is their industry users group, basically the big
operators. So, in terms of people directly involved with this
situation, there is no controversy. They all support what we
are trying to do.
Senator Moran. Would you ask that--I don't disagree with
what you just said, but would you ask your staff to help us, my
staff, get information from DOD as to what it costs today to
perform the functions?
Secretary Ross. Yeah. I don't know whether DOD has kept
separate figures, but the main purpose is frankly not saving
money, as important as that is. The main purpose is improving
the conditions under which information is communicated to the
satellite industry.
Commerce distributes 40 percent of all the factual
information that is emitted by the U.S. Government. We are very
good at communicating with the commercial sector. And, so, this
is a safety issue more than it is a transfer of budget issue.
Senator Moran. That, I fully understand, as well. I am just
trying to make sure we justify the amount of money that we
appropriate based upon the facts.
Secretary Ross. I will certainly try. I obviously have no
control over DOD. I would suggest maybe you fellows have better
control than I do with the appropriation process.
Senator Moran. Thank you, Mr. Secretary.
Senator Shaheen.
Senator Shaheen. Thank you, Mr. Secretary. My question is
really about the Census, but this exchange has raised an issue
in my mind, and that is, as you are aware, I know, we are
generally discouraged from authorizing in appropriations bills.
And, I understand that there is a bill in the Commerce
Committee that would address the transfer of this
responsibility into the Department of Commerce.
Can you give me an--give us an update on where that bill is
and why we are trying to authorize through the appropriations
process this new entity?
Secretary Ross. I am not quite sure I understood the
question. What is the information you are seeking?
Senator Shaheen. Where the bill is in the committee, the
Senate Commerce Committee, with respect to this process.
Because what you are suggesting is that we set up a new bureau
within the Department of Commerce, within the Office of the
Secretary, to do this responsibility. And, as you know,
appropriators are generally discouraged from authorizing new
language, new departments, new entities within appropriations
bills.
And, so, I am just trying--I wonder--you don't need to do
that now, but perhaps your office could get us an update on
what the challenges are there and why that has not been done
before we are trying to provide the funding.
Secretary Ross. We will be happy to do so.
Senator Shaheen. That would be great.
Secretary Ross. So, we will come back to you, Senator.
Senator Shaheen. Thank you.
I wanted to go back to the Census because I know that a
number of my colleagues on the subcommittee have expressed a
great deal of interest. It has been a huge topic of public
interest, sometimes of controversy, over the last several years
as we have been gearing up to both provide the money and make
sure that we have an accurate census.
One of the concerns that has been raised has been around
communities of color, also around confusion with respect to the
census. I know Senator Reed talked about the issue with
Providence County and people being a little confused.
One of the things that I would hope we would all try and do
is do everything we can to reduce confusion around the Census,
and that is why I wanted to show you this blowup of something.
This has been in the news recently about misinformation that
seems to be deliberate to try and confuse people about the
Census.
As you can see, this is labeled as an official document. It
says it is a 2020 Congressional District Census. It says that--
the envelopes are labeled, Do Not Destroy, Official Documents.
And, it is actually something that is being put out by the
Republican Party, the Republican National Committee, and that--
if you go down and read the fine print, it does say that.
But, I guess my concern is that this seems deliberately
designed to confuse people about the Census, and we have seen
some ads, some online ads, from President Trump's campaign that
also seem to be designed to try and confuse people around the
Census.
So, I would ask, are there efforts that you see underway
within the Department or within the Census Bureau to try and
respond to this kind of misinformation? Is this something that
you are willing to speak out about, that this is not helpful as
we are trying to get an accurate census count?
HANDLING CENSUS MISINFORMATION
Secretary Ross. Alright. Well, I am relieved to be
confirmed that that is not a Census document----
Senator Shaheen. No, clearly.
Secretary Ross [continuing]. Because it didn't look like
one to me.
Senator Shaheen. But to the unknowing and uneducated----
Secretary Ross. Right.
Senator Shaheen [continuing]. Citizen who is not as
familiar with the Census as you are, they don't know the
difference between this document and what comes out officially
from the Census.
Secretary Ross. That could be. I have asked the career
staff at Census to look into this and see what appropriate
action, if any, we should be taking to deal with it.
Senator Shaheen. Thank you. Will you report back to this
committee? And do you----
Secretary Ross. Surely.
Senator Shaheen [continuing]. Have a timeline for when you
might be able to get that done?
Secretary Ross. Well, as soon as they give me a response, I
will give you. As you know, the first mailings will be received
on the 12th of March.
Senator Shaheen. Right.
Secretary Ross. And there will be an accelerated schedule
as we go on out into the summer.
So, the other thing we have done is we have created a Rumor
Page on our website to try to deal with things.
We also have made arrangements with the big Internet
service providers. We have made arrangements with Facebook,
with Google, with Twitter, with all of them. They are being
reasonably cooperative with trying to help us deal with the
problem.
But, having said that, we are in a world where, as I
understand it, the experts feel that globally, something like
15 percent of all the social media users, are bots. That is a
big problem.
Senator Shaheen. It is a very big problem, and I don't
think any of us should buy into the fact that that is okay----
Secretary Ross. I surely do not.
Senator Shaheen [continuing]. That we think that is
acceptable.
Secretary Ross. I do not. But, the reason I cite the
statistic, it illustrates the magnitude of the problem.
Senator Shaheen. Absolutely. But on something like this, I
think your voice would resonate very loud and clear with groups
that might be doing--using the census for political purposes,
both to confuse and to try and affect the outcome. So, I hope
you will consider that.
Secretary Ross. As I have said, I have asked the career
staff at Census to tell me what there is that we can do and
what do they recommend. We will see what they come up with, and
we will report back.
Senator Shaheen. Thank you very much.
Thank you, Mr. Chairman.
Senator Moran. Senator Murkowski.
Senator Murkowski. Thank you, Mr. Chairman. I want to
continue on with a Census question, move off fish for a moment.
As you know, the Census has started in Alaska, out in
Toksook Bay, a community somewhere between 600-700 people.
Director Dillingham was there to kick it off. I think the team
learned a little bit of the challenge of conducting a census in
places that are not connected by roads, and when you are
withered down and you end up sleeping in the school, sometimes
getting those Census workers to come out in these areas has
been a challenge. We are hopefully working through that.
But, the question that I want to raise with you this
morning is the implementation of this new privacy system, known
as this differential privacy. It is going to be starting for
the first time with this Census.
We know that the intention here is to balance the data
accuracy with data privacy. But, what we have learned is that
there is some concern that when you have small populations--and
specifically with groups like American Indians or Alaska
Natives--you could be in a situation where, in order to provide
for that level of privacy needed, you could end up with an
undercount.
It is estimated right now--they did a recent analysis of
certain Alaska Native villages. They found out that applying
differential privacy could result in a nearly 30 percent
undercount of Alaskan Native people in this 2020 Census. This
is a real concern for us as it has the potential to greatly
undercut and erode a Tribe's funding. I know that the Bureau is
aware of this.
But, I would like to ask about the progress in development
of privacy systems that meet the user's needs as well as
protecting confidentiality, and whether or not you have enough
time to develop and implement a privacy system that will in
fact not undercut the count given the fact that the Census has
already started.
CENSUS: DATA ACCURACY WITH DATA PRIVACY
Secretary Ross. Right. Well, that is certainly our
objective. We have heard from many stakeholders on the impact
of it, particularly in smaller----
Senator Murkowski. Right.
Secretary Ross [continuing]. Communities, number one.
Number two, the Census Department has a team that is
actively modifying procedures and incorporating the feedback.
We have not gelled on exact formulas yet. It is a very
complicated algorithm that is needed because you want to
introduce enough static or enough, if you will, noise into the
process to protect privacy, and yet not result in the
undercount.
So, I don't know where that 30 percent figure came from.
That is not something I have heard.
Senator Murkowski. Yes, it is the algorithm that is being
used, or was initially being used.
Secretary Ross. Well, the algorithm is a work-in-progress.
I don't believe that they have finalized it because we have
been actively modifying things.
We had formal consultation in Alaska with the Alaskan
Native leaders on this very topic. We take very seriously the
legal and professional obligations to safeguard the information
that we gather from the public, and that is why we are doing
the differential privacy. That is, we think, the gold standard
for privacy protection in all of computer science
encryptography. So, we are working very hard. Remember, we are
sworn by law to protect personal information, so we cannot
sacrifice that at all.
Senator Murkowski. We understand that there is a balance.
We want to make sure that we get there knowing that you are on
this. Working with us is important, so we will keep in touch as
we move forward with that.
I want to end my comments going back to things that swim in
the water, this time just a little bit bigger. I would like to
talk about the humpback whales.
NOAA has recently proposed a designation of critical
habitat--175,000 plus square nautical miles--as critical
habitat for three distinct populations of humpback whales. The
majority of this area, over 120,000 square nautical miles, is
off the coast of Alaska.
This designation has the potential to impact our fisheries,
our tourism, and our shoreside infrastructure in a very
significant way. NOAA, unfortunately, did not estimate any
potential cost of the designation, other than the direct
administrative costs of future ESA consultations. They
basically said that other regulatory costs were just going to
be too difficult to predict.
But, on top of that, they failed to engage the State as
they went into this designation process. They denied--NOAA
denied written requests from the Alaska Department of Fish and
Game to be engaged early in the rulemaking or to conduct
interagency review. So, that would have all helped to resolve
the issues with both the biological and the economic
conclusions in the rules.
So, right now, there is incredible consternation in our
coastal communities. In southeastern waters, southeast has
been--southeastern waters have been designated as critical
habitat for the Mexican Humpback whale. The Mexican Humpback
whales do not come to the southeastern waters. In the Kodiak
area, in the Gulf, these communities have already been
devastated by the listing of the Steller sea lion.
So, it is so important that NOAA take into account the
comments that have been submitted by the coastal communities,
by the stakeholders, specifically the requests for improved
economic analysis and an exclusion of the southeast Alaska area
from the proposed designation.
So, I am just asking for your commitment to work with us,
look critically at this. Your administration, the Trump
administration, has been so good in looking to provide those
opportunities for economic activity. Well, if you are a coastal
community in Alaska and your entire region is shut down by a
designation that has not been thoroughly thought through or
really based on that sound data that really impacts those
economies. So, I would ask for your help on that.
NOAA--HABITAT DESIGNATION IN ALASKA
Secretary Ross. Well, thank you, Senator, for raising this
concern. I will be happy to look into this matter further and
follow up with you.
Senator Murkowski. And I know that the State is hoping that
NMFS will honor their request from the State to be engaged
early in the process, to allow the partner reviews, and really
to be given the same opportunity for collaboration as other
impacted States.
Secretary Ross. Thank you for raising the concern.
Senator Murkowski. Thank you. Thank you, Mr. Chairman.
Senator Moran. Mr. Secretary, we are just about done. The
only thing that stands between me and pounding the gavel is I
have one more thought and question--EDA's Regional Innovation
Strategy Program.
So, the EDA administers a program called the Regional
Innovation Strategy Program, or R-I-S, RIS. In fiscal year
2020, this subcommittee and the full committee and the Congress
included a $33 million amount for RIS with the intent of using
that to further support the two existing programs--one that is
called the i6 Challenge, and the other that is called Seed Fund
Program.
Earlier this year, and without consulting with Congress,
perhaps more concerning is without consulting any stakeholders,
EDA announced that it was establishing a third RIS program
called the Industry Challenge. This program may be well-
intentioned, but I would think that it would be appropriate for
EDA to consult with this committee and consult with
stakeholders, and I would ask you if you agree with that,
although I assume your answer would need to be yes.
EDA: RIS PROGRAM--INDUSTRY CHALLENGE
Secretary Ross. Well, your assumption is correct.
Senator Moran. Alright. Thank you, sir. The competition is
being labeled Blue Economy. And, while I sit here next to
Senator Shaheen, who--and Senator Murkowski, who just left, we
have no coastlines in Kansas, and I want to make certain that
this program that we thought was going to enhance existing
programs, this new program does not disadvantage landlocked
States like my own and many others. And, I would ask you to
help me to be assured that that is the case.
Secretary Ross. Well, I will work with staff and follow up
with you, Mr. Chairman.
Senator Moran. Thank you, Mr. Secretary.
Let me bring this hearing to a conclusion.
ADDITIONAL COMMITTEE QUESTIONS
There are no further questions. We have run out of time.
Senators may, however, submit additional written questions for
the official hearing record. We would request the Department
respond within 30 days.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted to Hon. Wilbur Ross
Questions Submitted by Senator Jerry Moran
Question 1. The President's fiscal year 2021 budget request
included $25 million to NTIA for support of a major acquisition related
to a services contract to modernize spectrum IT systems. Based on
information we have received from the department to date, hardware and
software components in NTIA's current spectrum IT systems will be
reaching ``End-of-Life'' in calendar year 2020, meaning there will be
no additional commercial vendor support for these components. The
President's budget request is intended to address these concerns that
have data security and national security implications.
Question 1a. If Congress were to appropriate $25 million for this
specific request, how will NTIA prioritize its activities to maximize
the initial investment for spectrum management?
Answer 1a. NTIA's Office of Spectrum Management (OSM) Spectrum
National Security Systems Program will manage the high-level
priorities. As documented in its acquisition plan, the Executive
Steering Committee and Integrated Product Teams will prioritize
activities that maximize the return on the initial investment. The
highest priorities are (1) improve Information Technology (IT) security
to ensure systems corresponding Federal spectrum processes remain
operational, (2) evolve the IT and data platform to enable future
spectrum efficiencies, and (3) develop and deploy tools enabling
spectrum efficiencies and timeliness improvements.
Question 1b. Since this request is described to be the beginning of
a series of budget requests, what should Congress expect in upcoming
fiscal years related to this project, including the total estimated
cost?
Answer 1b. NTIA estimates the total life-cycle cost of this project
to be $120 million over 12 years. Specifically, NTIA estimates an 8-
year development cost of $100 million, and a 4-year operations and
maintenance cost of $20 million. NTIA plans to split the development
into four phases, each taking 24-months and costing $25 million. The
four development phases are designed to deliver measurable outcomes and
system improvements throughout the project. By showing measurable
progress on each of the phases, NTIA would be requesting $25 million
from Congress every other year in the President's budget submission for
three additional cycles (i.e., fiscal year 2023, fiscal year 2025, and
fiscal year 2027). Operations and maintenance funding would be covered
through NTIA's collection of spectrum fees.
Question 1c. Please provide the Committee the current
implementation plan for modernizing spectrum management infrastructure,
with the anticipated equipment purchases and expected expenditures for
the entire project?
Answer 1c. The current project plan outlines four phases, as
described below. Please note that the phases are subject to change as
mission priorities evolve.
Phase 1
Phase 1 of this investment evolves NTIA frequency assignment
processing capabilities. These capabilities will:
(1) Enable 50 percent improvements in frequency assignment process
timeliness;
(2) Provide a secure IT environment to continue Federal frequency
assignment processing. Specifically, the re-engineering includes
removing unsupported technologies and implementing other security
enhancements; and
(3) Implement a common scalable technology infrastructure that
provides the foundation for continuous balances of safety and security
with innovation in spectrum efficiency improvements in Phase 2 and
beyond.
These changes will be accomplished concurrently with corresponding
policy changes in the frequency assignment approval process and in
coordination with other Federal agencies and automation programs that
are affected by the policy and technology changes.
The following are specific capabilities and enhancements provided
in Phase 1:
--New common secure & scalable infrastructure
--Re-engineered Frequency Management Records System and Data Capture
and Forwarding System capabilities that ensure continued
frequency assignment operations and 50 percent process
timeliness improvements
--Cross domain solutions for the frequency assignment process that
enable 50 percent timeliness improvements
--Government Master File frequency assignment data in a new
integrated spectrum data store, providing a common source of
authoritative data for consistent and trusted frequency
assignment-related reports and analyses.
Phase 2
Phase 2 of this investment improves the Federal Government's
ability to manage frequencies by enhancing systems to efficiently
``pack'' assignments in congested spectrum environments. These
improvements provide NTIA, the Interdepartmental Radio Advisory
Committee (IRAC), Federal spectrum managers and other process
participants with tools needed to reduce the ``whitespace'' between
assignments, while continuing to minimize electromagnetic interference.
The specific value of spectrum efficiency improvements is difficult
to measure. However, with U.S. spectrum auctions generating tens of
billions of dollars in revenue, it is clear that small overall
improvements (e.g., 1-5 percent overall increase in interference-free
frequencies) in Federal radio frequency efficiency have the potential
to generate billions of dollars in value through additional frequency
availability for Federal use or future spectrum auctions.
This Phase enables at least a 5 percent increase in spectrum
efficiency of U.S. Federal spectrum use through more accurate
engineering tools (i.e., computer models) and more complete spectrum
usage data. These changes will be accomplished concurrently with
corresponding policy changes in the frequency assignment approval
process and in coordination with other Federal agencies and automation
programs that would be affected by the policy and technology changes.
This investment also provides reengineering and security
improvements to the frequency assignment generation system (i.e.,
SPECTRUM XXI), improvements required to keep the system and
corresponding frequency assignment process operational.
The following are specific capabilities and enhancements provided
in Phase 2:
--Engineering tools and engineering services that enable spectrum
efficiencies
--Data validation and compliance tools that enable data improvements
for spectrum efficiencies
--Security and processing enhancements to SPECTRUM XXI required for
continued execution of the frequency assignment process and
achievement of spectrum efficiencies
--A common website for NTIA spectrum capabilities and data, which
contains Phase 1 and 2 capabilities
--Seamless access across Phase 1 and 2 capabilities through a common
authorization and authentication capability
--Operations and maintenance of Phase 1 capabilities.
Phase 3
Phase 3 of this investment improves the timeliness of spectrum
analyses and data requests by an average of 50 percent or more, and
enables authoritative, consistent and repeatable analyses. This phase
provides historical and real-time electromagnetic spectrum data on
demand for congressional inquiries, spectrum reallocation research,
World Radio Conference preparation, spectrum management operations
(e.g., Interference Predictions), and Freedom of Information Act
requests. The data includes spectrum policy data, spectrum auction
data, spectrum certification data, equipment parametric data, and
frequency assignment data from the Government Master File, Federal
Communications Commission, Canada and Mexico, and ad-hoc data sources.
This phase provides Business Intelligence dashboards, web-based
visualization and reporting tools, downloads, and machine-to-machine
interfaces (to authorized users only) to view, analyze and manage the
data. This phase also provides critical security enhancements for and
integration with the Equipment Location--Certification Information
Database Online (EL-CIDO), IRACnet, and SSS Logbook capabilities, and
integration with the NTIA website.
The following are specific capabilities and enhancements provided
in Phase 3:
--Additional authoritative data in the Integrated Spectrum Data
Store, providing a common source of data for authoritative,
consistent and trusted frequency assignment reports and
analyses
--Business Intelligence dashboards, analytics, reporting, and import/
exports capabilities based on authoritative data
--Metadata integrating formerly stove-piped datasets for advanced
cross-dataset dashboards, analytics, reporting and data exports
--A common online geographic information system to view and process
authoritative geographic spectrum data
--Security enhancements for and integration with the Federal spectrum
certification system and the IRAC support system
--Operations and maintenance of Phase 1 and 2 capabilities.
Phase 4
Phase 4 of this investment adopts and enhances Federal spectrum
sharing, spectrum auction, and spectrum transition tools, and
integrates these tools, data and business processes into the existing
NTIA frequency assignment processes and capabilities. This will provide
NTIA with the data, situational awareness, and information technology
capabilities needed to support the spectrum community as the United
States continues to transition a number of government-only frequency
bands to government-commercial sharing.
The following are capabilities and enhancements provided in Phase
4:
--Enhanced spectrum auction and spectrum transition tools
--Enhanced Federal spectrum sharing tools
--Integration of spectrum auction, spectrum transition, and spectrum
sharing data into the Integrated Spectrum Data Store
--Business Intelligence dashboards, analytics, reporting, and import/
exports capabilities based on spectrum auction, spectrum
transition, and spectrum sharing data
--Operations and maintenance of Phase 1-3 capabilities.
The system is expected to be hosted in the cloud, so there are no
anticipated IT platform equipment purchases.
Question 1d. How does the Department plan to prioritize certain
components of their spectrum IT systems over others in determining its
funding decisions?
Answer 1d. The Department's priority is to improve the security
posture of the current components to ensure no loss of mission critical
capabilities. The Executive Steering Committee will determine which
other components to prioritize and Integrated Product Teams will manage
them.
Question 1e. How do you expect the award process for the contract
to play out if Congress were to provide the requested $25 million for
the initiative?
Answer 1e. NTIA's acquisition strategy is based on the following
criteria:
--Flexible contract vehicle to allow for changing requirements and
priorities
--Contract type that incentivizes the contractor performance such as
Cost Plus Incentive Fee or Cost Plus Award Fee
--12-year contract worth a total of $120 million
--Development Phase: 8 years
--Operations & Maintenance: 4 years
--As technology evolves the strategy to fill this requirement will
evolve to provide the most current technical solution possible.
NTIA will direct the contractor to:
--Develop a modern, flexible, and efficient architecture that will
enable OSM and Federal agencies to quickly adapt to evolving
data, workflow, and interoperability needs for spectrum
management across the Federal Government;
--Improve data models and spectrum analysis tools to increase
spectrum efficiency by reducing ``white space'' between
assignments and enabling more dynamic spectrum sharing;
--Enhance automation and workflows, along with cross-domain
capabilities to reduce the scope and level of manual effort to
administer spectrum management functions and improve data
quality and processing time;
--Implement modern reporting tools and technical data to provide ad
hoc reporting, enhanced data visualization, and improved
analysis;
--Improve NTIA's security posture; and
--Support spectrum IT system capabilities:
(1) On any box--Ability to access capabilities by all authorized
end-users via a Web browser. Authorized users can access applications
via the spectrum.gov site;
(2) For any user--Ability to access capabilities by anyone given
specific access privileges;
(3) With quality data--Capacity to provide authorized users
global, near real-time, accurate, integrated information; and
(4) Anywhere--Ability of authorized users to access the
capabilities from any geographic location where they have connectivity
to the appropriate network.
Question 1f. Are there any additional NTIA personnel that will be
needed in the first year, and how many more are anticipated over the
life of this equipment upgrade?
Answer 1f. NTIA will require additional government resources to
successfully execute this program. The following provides the titles
and describes the responsibilities of the six (two GS-14, two GS-13 and
two GS-12) additional Full Time Equivalent (FTE) staff required in the
first year to meet government contracting, and Information Technology
requirements for the spectrum IT systems modernization.
--Senior Engineering Advisor.--Serve as a senior engineer for the
modernization of OSM automated spectrum management tools,
products, and capabilities; and a senior expert in program
management for IT implementation. Provide oversight and
leadership in the execution of broad and complex technology
initiatives to effectively service the Federal spectrum
management business requirements.
--Test Lead.--Serve as a senior advisor and test lead for the testing
of Spectrum IT Systems. Prepare expert-level risk assessments,
determine the appropriate testing levels, mechanisms, and data,
develop comprehensive test plans, conduct test activities,
analyze test results and provide fielding recommendations.
Ensure spectrum business process requirements are completely
and thoroughly tested.
--Technical Lead.--Serve as a senior advisor for and provide
oversight of spectrum IT system requirements, designs, systems
development activities, required data, and implementation
technologies. Ensure spectrum business process requirements are
understood and implemented correctly.
--Operations Manager.--Responsible for installation and deployment of
spectrum IT systems on operational networks and computing
devices. Provide industry-leading customer support,
configuration management controls, and system operational
availability.
--Information System Security Lead.--Responsible for secure software/
systems design/development/delivery, contractor information
assurance, secure software development lifecycle Process and
information assurance technician requirements.
--Contracting Officer/Contracting Officer Representative.--Award and
execute the project contract(s). Successfully navigate
Department of Commerce contracting processes, and implement the
Spectrum IT Systems Modernization efforts within corresponding
cost, schedule and scope constraints. Ensure all Federal IT
contracting requirements are met and regulations followed.
Question 1g. If Congress were to appropriate $25 million for this
specific request, how would you expect spectrum management research
initiatives within NTIA's Institute for Telecommunications Sciences to
be impacted, if at all?
Answer 1g. There are no plans to significantly change current
Institute for Telecommunication Sciences (ITS) research initiatives as
a result of this request. Distinct from the objectives of this request,
NTIA's ITS will continue development of essential spectrum management
engineering models for the spectrum IT modernization program and other
NTIA responsibilities. ITS models provide a common engineering platform
that enhances both ITS and NTIA/OSM capabilities and data.
Question 2. The Department once again proposes to eliminate the
Economic Development Administration, which is the only Federal agency
dedicated to assisting distressed communities across the country to
spur economic development and recovery. While the Committee considers
the Administration's request for fiscal year 2021, Congress was clear
in its support for EDA in fiscal year 2020. Included in the final
funding package for fiscal year 2020 was specific direction for EDA to
``expand outreach and technical guidance to prospective grantees with
the goal of ensuring increased quality and quantity of applications for
assistance aimed at benefitting residents of persistent poverty
counties or high poverty areas''. Unfortunately, many of the
communities EDA is meant to assist may not have the means or expertise
to navigate all of the technical requirements that come with applying
for economic development grants.
Question 2a. What is EDA doing to ensure it provides a sufficient
level of customer service and technical assistance to distressed
communities to overcome the bureaucratic hurdles necessary to be
considered for funding?
Answer 2a. Guided by the basic principle that sustainable economic
development should be locally-driven, EDA works directly with
communities and regions to help them build the capacity for economic
development based on local business conditions and needs.
EDA personnel in both its headquarters and regional offices play
critical roles in the implementation of the agency's vision for
locally-driven economic development and supporting the ability of local
and regional partners to successfully leverage multiple Federal
economic and community development resources. These include:
--Economic Development Representatives (EDRs): Each of EDA's six
regional offices is staffed with EDRs who are assigned to work
with partner and stakeholder organizations in one or more
States. Each EDR invests a great deal of his or her time
cultivating relationships with organizational leaders and
staff, becoming familiar with the economic conditions of the
State and its regions, and providing technical guidance
pertaining to EDA program rules and the grant application
process.
--Economic Development Integration (EDI), HQ: EDA's EDI HQ team works
with Federal peers to identify opportunities for greater
interagency collaboration, and to facilitate the coordinated
and effective investment of Federal economic development
resources. EDI establishes and maintains collaborative working
relationships with Federal interagency colleagues, and
identifies and leverages opportunities for constructive
engagement among interagency partners and their respective
grantees.
--Regional Economic Development Integrators (REDIs): Each of EDA's
six regional offices has one REDI position. The role of each
REDI is to support both the regional office and potential
applicants with cross-agency referrals and collaborative
problem-solving that helps communities navigate Federal
programs and remain focused on their strategic roadmap for
economic growth. Drawing on their expertise and experience with
Federal economic development programs, REDIs are well-
positioned to curate and disseminate information and technical
expertise needed to match opportunities with needs identified
by both EDRs and the customers served by each regional office.
--Disaster Recovery: EDA serves as the Coordinating Agency for the
Economic Recovery Support Function (RSF) on behalf of the
Department of Commerce. In this capacity, EDA provides
leadership, coordination and oversight for primary and support
agencies, all of which share a role in the provision of grants,
loans, training and other forms of assistance to support
economic recovery efforts in disaster-impacted communities and
regions. This includes regular participation in FEMA's Recovery
Support Function Leadership Group meetings which are convened
to coordinate the exchange of economic data, impact assessments
and Federal recovery resource information and points of
contact; and deploying EDA personnel to serve as Field
Coordinating Officers under a FEMA Economic RSF Mission
Assignment in disaster-impacted regions and States.
--Research and National Technical Assistance (RNTA): RNTA projects
support these customer service and technical assistance
objectives through multiple kinds of tools and strategies. At
any given time, EDA is usually supporting 10-15 different RNTA
projects. EDA's Research and Evaluation projects focus on
developing easy-to-use data tools (e.g., www.StatsAmerica.org)
to provide `no-cost to the user,' robust economic development
data. Other projects focus on economic development outcomes,
best practices and strategies that can help communities focus
on efficient deployment of scarce resources to achieve economic
development goals. National Technical Assistance (NTA) awards
are designed to support specific constituent communities where
targeted outreach is possible and encouraged through
congressional interest. For example, Nuclear Closure
Communities have been a focus area for EDA outreach, including
establishing an NTA Cooperative Agreement to support
communities who have experienced, or will experience closures
(www.decommissioningcollaborative.org). Similarly, rural
innovation has been an area of interest, resulting in a 40
percent carve-out for the Build to Scale Program (formerly,
Regional Innovation Strategies) for awards that serve rural
areas. To further this objective, through NTA EDA has supported
direct technical assistance and engagement for these rural
areas by working with Rural Innovation Strategies Inc. under a
cooperative agreement to provide strategic assistance for those
communities who are seeking to apply for EDA awards in the
future.
In order to expand its capacity to reach distressed communities and
provide a sufficient level of customer service and technical assistance
EDA is hiring additional staff, particularly in areas affected by
disasters occurring in 2017 through 2019 and using the special hiring
authority Congress provided to facilitate EDA's response to the
economic impacts from COVID-19. As of June 30th, EDA has created an
additional 31 positions to help execute the $1.2 billion in disaster
supplemental related work and 96 positions to help execute the $1.5
billion in CARES Act supplemental work. Of the 31 disaster positions,
23 are filled. Of the 96 CARES Act position, 16 are filled. All 88
vacancies are actively being filled and thanks to the special hiring
authority Congress provided to EDA in the CARES Act, EDA expects to
fill most of the CARES Act vacancies by the end of this calendar year.
Question 2b. Mr. Secretary, can you assure the Committee that while
EDA is funded, the agency will not use bureaucratic hurdles as an
excuse to slow down consideration of requests for funding?
Answer 2b. Yes. I assure the committee that while EDA is funded,
the agency will not use bureaucratic hurdles to slow down consideration
of requests for funding. EDA is wholly committed to fully executing the
budget passed by Congress each fiscal year and to fully execute any
unobligated balances from prior appropriations.
Under the current administration, EDA has used all of its resources
to execute the budgets as passed by Congress, including continuing to
award grants funded under the fiscal year 2018 and 2019 disaster
supplemental appropriations and the CARES Act. During this time period,
EDA has reduced its non-disaster unobligated balances from prior
appropriations by $43.1 million, dropping from a high of $58.3 million
to a current $15.2 million. EDA's annual obligations consistently
exceed the amount appropriated each fiscal year by an average of $34.3
million as EDA executes the unobligated balances and any recoveries
from prior appropriations received during the current year.
For this fiscal year, EDA anticipates executing on the new programs
Congress funded, including awarding the full $15 million designated to
providing assistance to communities impacted by nuclear closures. EDA
is also actively implementing the new STEM apprenticeship pilot program
first funded this fiscal year. EDA anticipates making the first STEM
grant awards by the end of this calendar year.
Question 2c. Can you please describe the Department's and EDA's
priority areas for economic recovery related to advanced manufacturing
and building economic resilience through diversifying the workforce?
Specially, what value does attracting private sector investments
provide to struggling communities trying diversify their local
workforces?
Answer 2c. The Department and EDA prioritize investments that
assist U.S. communities pursuing diversified, resilient and globally
competitive economies that are responsive to changing economic needs
and conditions. Innovation is key to global competitiveness, new and
better jobs, a resilient economy, and the attainment of national
economic goals. Our investment priorities encourage projects preparing
local and regional workforces for high-quality jobs meeting the hiring
needs of local employers in key sectors including the U.S.
manufacturing industry and related supply chain. To assist struggling
economies, EDA's investments seek to catalyze private investment in
community strategies to support advanced manufacturing of innovative
products responsive to changing economic needs and conditions. As EDA
and private investments funds flow in, they make struggling communities
more resilient by having new jobs locate in the community, especially
when those jobs are focused in new industries. Having a more diverse
economy is key to sustained economic resiliency.
Awards made through the Assistance to Coal Communities program have
included skills training facilities and equipment, research hubs,
industrial parks, and related infrastructure for advanced manufacturing
that provide pathways to recovery and future growth for coal-impacted
communities like those in Pike County, IN, Greenup County, KY,
Clearfield, PA, and Sheridan, WY. Likewise EDA's disaster recovery
investments assist communities pursuing recovery strategies that make
their economies more economically resilient, as demonstrated by EDA's
fiscal year 2017 $1.4 million award to the Florida Institute of
Technology to renovate its Center for Advanced Manufacturing and
Innovative Design (CAMID) in Palm Bay. The Center provides local firms
with access to workforce training, advanced software and manufacturing
equipment and is anticipated to support over 500 new high-tech jobs in
the first few years of operation. Additional examples are found in
EDA's Fiscal Year 2019 Assistance to Coal Communities Congressional
Report.
EDA has continued to make responsive awards to support advanced
manufacturing in communities recovering from 2018 and 2019 disasters.
From the 2018 and 2019 Disaster Supplementals, EDA has invested close
to $10.2 million in 6 projects supporting advanced manufacturing across
the U.S. These included close to $9.5 million in 4 projects that are,
according to recipient estimates, expected to create or retain 3,582
jobs and attract close to $1 billion in private investment. EDA also
invested $700k in 2 projects to support planning, research, technical
assistance, access to capital, or other activities that are essential
for successful economic development and job creation in the future.\1\
EDA is building on these investments with its implementation of
remaining fiscal year 2020 Economic Development Assistance Program
awards, and later this summer, EDA will launch the STEM Apprenticeship
Pilot Program, a $2 million grant challenge that will support the
development of new and iterative training models to increase access and
pathways into STEM careers.
---------------------------------------------------------------------------
\1\ The EDA data provided herein should be viewed as a snapshot of
the data available at the time of the data request and are subject to
any changes, or updates as reflected within future reports and data
requests. This includes, but is not limited to, revisions to the
number, dollar amount, program classification and estimated impacts of
specific grant awards.
---------------------------------------------------------------------------
In addition, EDA has built these priorities (i.e., promoting a
diversified workforce and resilient, competitive U.S. manufacturing and
supply chain capacity) into its most recent CARES Act funding to
support a rapid, sustained economic recovery for struggling local
economies across the Nation.
Question 3. Concurrent with the transmission of the answers to the
fiscal year 2021 budget hearing questions for the record, please
provide the following information:
Question 3a. The number of days the fiscal year 2021 questions for
the record were with the individual Bureaus for response and review.
Answer 3a. 63
Question 3b. The number of days the fiscal year 2021 questions for
the record were with the Department of Commerce Office of Budget for
response and review.
Answer 3b. 35
Question 3c. The number of days the fiscal year 2021 questions for
the record were with the Department of Commerce Office of Legislative
and Intergovernmental Affairs for response and review.
Answer 3c. 20
Question 3d. The number of days the fiscal year 2021 questions for
the record were with the Department of Commerce Office of Policy and
Strategic Planning for response and review.
Answer 3d. 25
Question 3e. The number of days the fiscal year 2021 questions for
the record were with the White House Office of Management and Budget
for response and review.
Answer 3e. 58
Question 4. I am aware that several Department of Commerce bureaus
have a large number of vacancies and that it can take upwards of a year
for some to complete hiring actions.
Question 4a. What is the department doing to streamline its hiring
processes and fill critical vacancies?
Answer 4a. The Department is piloting two programs to help
streamline the hiring process. The first program involves expanding the
use of subject matter experts (SMEs) in the application review stage.
Early participation by SMEs in relevant fields ensures that applicants
referred to the hiring manager are not only the most highly qualified
candidates but also increases the likelihood of long-term retention.
The Department is also piloting a streamlined process to hire selectees
more quickly without compromising security. This has historically been
one of the bottlenecks in the Department's hiring process and the
Department's offices of Security and Human Resources are working
together to clarify roles, reduce the number of hand-offs, and speed
the process. In addition to these two pilot programs the Department is
committed to making broader use of generic position descriptions and,
more importantly, shared certificates of eligibles that will allow a
hiring manager to make a selection from among qualified applicants for
a similar position announced elsewhere in the Department rather than
requiring the manager to initiate an entirely new hiring process.
Question 4b. What percentage of the Department of Commerce
workforce is currently retirement eligible? What percentage of the
Department of Commerce workforce will be retirement eligible by the end
of fiscal year 2024?
Answer 4b.\1\
---------------------------------------------------------------------------
\1\ The percent eligible for retirement in fiscal year 2024 is
calculated assuming no retirements between now and fiscal year 2024 and
thus the actual percentage could be lower.
The chart includes information for U.S. direct-hire employees only
(excludes overseas locally employed staff) and shows a small number of
other agency limited appointments to the Foreign Service in ITA.
RETIREMENT ELIGIBILITYPDEPARTMENT OF COMMERCE--CM
(Year = Calendar Year 2020)
----------------------------------------------------------------------------------------------------------------
Total
Org Population 2020 % Elig 2021 2022 2023 2024 % Elig
----------------------------------------------------------------------------------------------------------------
BUREAU OF ECONOMIC ANALYSIS............ 470 82 17.45% 11 8 13 7 25.74%
INTERNATIONAL TRADE ADMIN.............. 1357 220 16.21% 46 50 52 45 30.43%
NATL INST OF STND TECH................. 3378 756 22.38% 104 111 84 95 34.04%
NATIONAL TECH INFOR SERVICE............ 40 15 37.50% 2 2 0 1 50.00%
BUREAU OF INDUSTRY SECURITY............ 349 86 24.64% 7 14 9 15 37.54%
NAT TELECOMMUN INFOR ADMIN............. 488 94 19.26% 18 18 20 17 34.22%
ECONOMIC DVLPMT ADMINISTRATION......... 205 39 19.02% 5 4 9 5 30.24%
MINORITY BUSINESS DVLPMT AG............ 42 9 21.43% 1 0 1 2 30.95%
OFFICE OF THE SECRETARY................ 908 138 15.20% 17 25 31 27 26.21%
NAT OCEANIC ATMOSPHERIC ADM............ 11328 2309 20.38% 418 400 425 424 35.10%
PATENT AND TRADEMARK OFFICE............ 12715 1752 13.78% 294 284 342 381 24.01%
BUREAU OF THE CENSUS................... 23922 7659 32.02% 634 617 974 1306 46.78%
OFF OF THE INSPECTOR GENERAL........... 152 17 11.18% 4 0 3 7 20.39%
------------------------------------------------------------------------
Total............................ 55354 13176 23.80% 1561 1533 1963 2332 37.15%
----------------------------------------------------------------------------------------------------------------
Total Population: 55354
Question 4c. Does the department have a holistic workforce plan
that accounts for both employee attrition and succession? If so, please
provide a copy of that plan to the subcommittee concurrent with the
submission of the answers to the fiscal year 2021 budget hearing
questions for the record.
Answer 4c. The Department has a Senior Executive Service Career
Development Program that identifies potential future leaders through a
competitive internal process. Completion of the program, with OPM
approval, makes these employees eligible for appointment directly into
vacant executive positions within the Department without further
competition. The Department has also hired an employee in in the Office
of Human Resources Management who will focus on succession planning.
Question 5. The Department's fiscal year 2021 budget again proposes
to combine two offices that are currently part of NOAA and establish a
new Office of Space Commerce within the Office of the Secretary.
Question 5a. Why is it immediately necessary for these two offices
to be moved from NOAA and placed within the Office of the Secretary?
Are there any other operational and/or regulatory offices within the
immediate Office of the Secretary?
Answer 5a. U.S. commercial space enterprises represent a key
opportunity for significant for economic growth that will provide high
quality jobs across multiple disciplines. From 2018 to 2019, the U.S.
space workforce increased by 4.1 percent, marking the third consecutive
year of expansion.\2\ Currently valued at over $400 billion, major
financial institutions such as Merrill Lynch, Morgan Stanley, and Bank
of America predict that the global space industry will be worth between
$1 and $3 trillion by 2040.\3\ While the U.S. accounts for over half of
global commercial space activity, the industry is rapidly globalizing,
creating additional international competition for American space
companies.\4\
---------------------------------------------------------------------------
\2\ ``The Space Report 2020: The Authoritative Guide to Global
Space Activities Executive Summary,'' The National Space Foundation,
2020.
\3\ Michael Sheets, ``The space industry will be worth nearly $3
trillion in 30 years, Bank of America predicts,'' CNBC.com, 31 October
2017, https://www.cnbc.com/2017/10/31/the-space-industry-will-be-worth-
nearly-3-trillion-in-30-years-bank-of-america-predicts.html.
\4\ National Space Council Tasker on Health and Competitiveness of
the U.S. Commercial Space Industry, March 2020.
---------------------------------------------------------------------------
The movement and consolidation of the Office of Space Commerce
(OSC) and the Commercial Remote Sensing Regulatory Affairs (CRSRA)
office from the National Oceanic and Atmospheric Administration (NOAA)
into an elevated Office of Space Commerce in the Office of the
Secretary reflects the growing importance of space activities to the
administration and to the Nation's economic and national security.
Space commerce activities often require Secretarial-level engagement
and input, as they are increasingly intertwined with other DOC bureaus
and other U.S. Government equities including space exploration,
commercialization of government space activities, and national
security. Thus, the proposed consolidation and movement will more
effectively enable the Office of the Secretary to leverage all bureaus
of the Department to advance U.S. space commerce interests.
When created by Congress in 1988, OSC was constituted in the Office
of the Secretary to ensure that it could leverage all other parts of
the Department. In 1996, the Department moved OSC out of the Office of
the Secretary, along with other deprioritized offices at the time.
Given the reenergized prioritization of the U.S. commercial space
industry and the projected growth of space commerce, an even greater
need exists today than when the Office was established in 1988 to
center the Department's space commerce activities into one office
directly reporting to and interfacing with the Secretary.
Secretary Ross's strategic plan for the Department of Commerce
prioritizes the expansion of American space commerce as Strategic
Objective 1.1. The plan calls for the elevation of OSC to have direct
line of reporting to the Secretary, in order to give it a stronger
voice to advocate for the U.S. commercial space industry. Many of OSC's
current space policy issues are also outside NOAA's direct mandates,
including the Artemis Accords, space nuclear power and propulsion, and
space economy accounting.
Under the proposed consolidation and movement of OSC, the
Department will alleviate past challenges OSC faced engaging senior
leadership at the White House and championing the interests of U.S.
commercial space industry in important interagency discussions. OSC had
no Director in the decade preceding 2018 and its effectiveness was
limited. CRSRA faced similar challenges as another industry-focused
unit embedded within a science-focused organization. Consolidating and
moving the two organizations to the Office of the Secretary will ensure
American commercial space interests are given the high-level attention
they require, while also allowing NOAA to focus its resources and
attention on its core mission. While additional authorization language
is not needed to elevate OSC to the Office of the Secretary, enacting
such elevation in law will ensure a reorganization that reflects the
growing significance of the commercial space industry and survives
changes in politics or personalities. Moreover, there has been
significant and sustained bipartisan support amongst the authorizers in
both the House and Senate for this elevation. During the 115th
Congress, H.R. 2809 American Space Commerce Free Enterprise Act, which
would elevate the OSC and CRSRA to the Office of the Secretary and
create a Senate Confirmed Assistant Secretary, passed the House without
opposition; and S. 3277 Space Frontier Act, which goes even further to
create a Bureau of Space Commerce including a Senate Confirmed
Assistant Secretary, passed the Senate without opposition. Both pieces
of legislation were reintroduced in the 116th Congress. Additionally,
the 2020 Commerce-Justice-Science Appropriations Bill, H.R. 3055,
included an amendment to transfer OSC and CRSRA to the Office of the
Secretary.
Furthermore, President Trump's Space Policy Directive (SPD)-2,
``Streamlining Regulations on Commercial Use of Space,'' issued May
2018, directs the Secretary of Commerce to consolidate in the Office of
the Secretary the responsibilities of the Department of Commerce with
respect to the Department's regulation of commercial space flight
activities. The intent is to facilitate American space commerce by
simplifying the regulatory processes for companies seeking to conduct
business in space. Such consolidation would give such companies a
single point of entry within the Department for licensing questions and
applications. This action will also strengthen collaboration between
OSC and CRSRA on policy and regulatory issues. For example, it would
ensure alignment between the regulatory approaches taken for commercial
remote sensing satellites and for any other space systems that the
Department may be authorized to oversee in the future (e.g., non-
traditional space activities and/or orbital debris mitigation).
As OSC proceeds with its near-term implementation of SPD-3,
designating the Department of Commerce as the lead civil agency for the
provision of industry-facing space situational awareness (SSA) services
and information, it is increasingly urgent that OSC be elevated into
the Office of the Secretary. Placing an operational/regulatory space
function within an executive branch department's Office of the
Secretary has precedent. The Office of the Secretary of Transportation
housed the original Office of Commercial Space Transportation, a space
licensing organization, before it was integrated into the FAA, and also
funded the development of multimillion-dollar civil GPS capabilities.
There are currently other operational and/or regulatory offices
within the Office of the Secretary. The operational and regulatory
offices within the Office of the Secretary include the Office of Policy
and Strategic Planning, the Office of the General Counsel, and the
Office of the Chief Financial Officer and Assistant Secretary for
Administration. The elevation of the Office of Space Commerce alongside
these and other operational and regulatory offices will streamline
coordination and harness all available Departmental resources for the
benefit and competitiveness of the U.S. commercial space industry.
Question 5b. The two Space Policy Directive's driving this proposal
call for the Department of Defense (DoD) to transition civil and
commercial space situational awareness responsibilities to the
Department of Commerce. How much is DoD currently spending to provide
civil and commercial space situational awareness notifications?
Answer 5b. Currently, the 18th Space Control Squadron (18 SPCS) at
Vandenberg AFB provides the space traffic management (STM) function for
military, commercial and civilian satellite operators. According to the
Department of Defense (DoD), in support of these functions in fiscal
year 2020, DoD is resourcing approximately $93.2M in investment funding
for the development and fielding of its Space Domain Awareness (SDA)
and Space Command and Control (Space C2) capabilities. In addition, DoD
plans to spend approximately $56.1 million in fiscal year 2020 to
sustain and operate existing systems, not counting the costs required
to equip, train, and field SDA sensors and Space C2 personnel. These
costs are associated with systems which both primarily support the
larger SDA mission and contribute to performing the STM function for
military, civil and commercial satellite operators as a subset of the
SDA mission. These resources cannot be transferred to the Department of
Commerce (DOC) as the DoD requires use of these systems for the broader
SDA mission to include continued STM for military satellite operators.
This implementation will allow DoD to devote its full attention to the
increasingly complex national security defense needs in space. DOC can
then develop a modern infrastructure that builds upon DoD SDA data and
capitalizes on commercial SSA data and other capabilities in order to
increase our space situational awareness and support more accurate
notifications of potential conjunctions.
Question 5c. What should Congress expect the budget needs for a new
Office of Space Commerce to be in each of the next five fiscal years?
Answer 5c. The President's fiscal year 2021 budget includes $15
million for a consolidated OSC and CRSRA in the Office of the
Secretary. A substantial portion of this request will be devoted to
establishing the Department's commercial SSA services and information
responsibilities. This includes an increase of 13 FTEs with space
policy and technical expertise and will allow OSC to further leverage
commercial capabilities that are already in the market with new SSA-
related sensors, analytic tools, visualization capabilities, and other
components.
The President's 2022 budget will contain additional information
about the additional needs in future fiscal years.
______
Questions Submitted by Senator Jeanne Shaheen
Question 1. The administration has paid $28 billion to certain
farmers affected by the Trump tariffs. However, these farmers are not
the only ones impacted by the Trump tariffs. Our manufacturers and
small businesses are hurting as well. During the hearing, you and I
discussed how I hear consistently from New Hampshire business regarding
the effects of these tariffs on their operations, and yet, there is no
analogous support for these companies.
Question 1a. Do you think we should have a similar assistance
program for our manufacturers and small businesses?
Answer 1a. The International Trade Administrations (ITA) remains
committed to helping U.S. exporters, particularly small and medium
sized enterprises (SMEs), through a range of existing programs. ITA's
Global Markets business unit, through its U.S. and Foreign Commercial
Service, assists clients including U.S. manufacturers, more than 90
percent of which are small-to-medium sized companies, in exporting
their products worldwide. ITA's U.S. Field offices, known as U.S.
Export Assistance Centers (USEACs), play a vital role in providing
export counseling and services to upwards of 30,000 SME exporters on an
annual basis.
In addition, ITA's Market Development Cooperator Program (MDCP)
provides support to American manufacturers seeking to enhance their
competitiveness and export capacity. Programs such as MDCP grants
establish partnerships between ITA and non-profit industry groups like
trade associations and standards-developing organizations. ITA is
considering proposals by 27 trade associations and other industry
groups to identify and develop new and innovative MDCP projects that
will enhance U.S. competitiveness and exports. ITA intends to announce
a slate of new MDCP financial awards in September 2020 and subsequently
begin working with new cooperators at the start of fiscal year 2021.
Question 1b. Is the Commerce Department planning on waving any
tariffs in light of the COVID-19 pandemic?
Answer 1b. On April 18, 2020, President Trump signed Executive
Order 13916 authorizing the Secretary of the Treasury to provide relief
to certain U.S. businesses, including critical supply chains for U.S.
manufacturers, during the COVID-19 pandemic.
Pursuant to the Executive Order, the U.S. Department of the
Treasury and Customs and Border Protection issued a joint Temporary
Interim Final Rule providing importers, who have faced a significant
financial hardship due to the outbreak, with the option to seek a 90-
day deferment period on the payment of duties (including certain
tariffs), taxes, and fees. This action does not change deadlines for
tariffs and fees for goods subject to antidumping and countervailing
duties (AD/CVD), and Section 201, 232, and 301 Trade Remedies. Any
further questions should be referred to the Department of the Treasury.
On March 20, 2020, the Office of the U.S. Trade Representative
(USTR) announced that, in an effort to keep current on developments in
our national fight against the coronavirus pandemic, USTR had opened a
docket for members of the public, businesses, and government agencies
to submit comments if they believe further modifications to the Section
301 tariffs are necessary in light of the coronavirus pandemic. That
process is on-going. Further questions should be referred to the U.S.
Trade Representative.
Question 2. Ninety-seven percent of exporting firms in our country
are small businesses, but less than 1 percent of small businesses
export, despite the fact that roughly three quarters of world
purchasing power and 95 percent of world consumers are abroad,
according to USTR. That's why I can't understand the President's budget
proposal to slash funding for the International Trade Administration's
Global Markets division. This division includes the U.S. Commercial
Service that helps small- and medium-sized businesses secure access to
international markets and works to bring down trade barriers.
Question 2a. The President's budget cuts the ITA division that
promotes U.S. exports by $53 million or 16 percent. This would require
closing at least 32 international offices, 18 domestic offices and
significantly reducing staff. ITA has a proven track record promoting
U.S. exports. In an environment where U.S. businesses are facing
competition from China and other global competitors, why isn't export
promotion reflected as a priority by this administration's budget?
Answer 2a. With the administration's emphasis on vigorous
enforcement and ensuring enhanced market access around the globe for
U.S. manufacturers and service providers, the Department of Commerce
must make difficult choices to prioritize precious American taxpayer
resources.
The International Trade Administration (ITA) remains committed to
helping U.S. exporters, particularly small and medium sized enterprises
(SMEs), begin exporting to foreign markets or expand their market share
in those countries. Recently, we completely revamped ITA's web
presence, rolling out an ``exporter portal'' that empowers SMEs with a
greater latitude to self-service. Within this export portal we have
introduced new tools such as the Market Diversification Tool, which is
a public online tool that enables exporters to find new markets abroad
for their products.
In addition to new market access opportunities and the advancements
we have made on the digital front, this administration has also
prioritized vigorous trade enforcement to protect American businesses
and workers from unfairly traded imports. Strong trade enforcement
helps level the playing field for products that are made in America and
is consistent with the broader objective of ensuring that U.S. trade
relations with other countries are free, fair, and reciprocal--an
objective that is particularly important during times of economic
distress.
Question 2b. This Committee has made a concerted, bipartisan effort
to provide sufficient funding to fill the large number of vacant
positions within ITA. Will you commit to me that, despite the proposed
cuts, the Department will continue to follow congressional intent and
fill these vacancies?
Answer 2b. The International Trade Administration (ITA) appreciates
the support of the Committee and is committed to filling vacant
positions.
Question 3. Mr. Secretary, 2 years ago you told this Committee that
it was necessary to include a citizenship question in the 2020 Census
in order for the Department of Justice to enforce the Voting Rights
Act. Stating--quote--``well, the Justice Department is the one who made
the request of us.''
Ultimately this justification was found to be invalid by the
Supreme Court, with Chief Justice Roberts stating in the majority
opinion that it--quote-- ``appears to be contrived.'' Yet, even after
this issue was settled by the Supreme Court and the Department did not
include the citizenship question, the President issued an Executive
Order requiring Federal agencies, including the Department of Homeland
Security, to provide administrative data regarding individuals'
citizenship status.
Question 3a. How will this administrative data regarding
individuals' citizenship status be used by the Census Bureau?
Answer 3a. The Executive Order increases the availability of
administrative records available for improving statistics. In section
3, the Order directs that ``all agencies shall promptly provide the
Department the maximum assistance permissible, consistent with law, in
determining the number of citizens, non-citizens, and illegal aliens in
the country, including by providing any access that the Department may
request to administrative records that may be useful in accomplishing
that objective.''
Question 3b. Will this citizenship data be used as part of the
apportionment calculations?
Answer 3b. The tabulation of the population is reported to the
President, and it is the President who then transmits a statement to
Congress showing the number of Representatives to which each State
would be entitled. The apportionment is calculated every 10 years using
the method of equal proportions, according to the provisions of Title
2, U.S. Code. In accordance with the ``Memorandum on Excluding Illegal
Aliens From the Apportionment Base Following the 2020 Census'' from the
President on July 21, 2020, ``it is the policy of the United States to
exclude from the apportionment base aliens who are not in a lawful
immigration status under the Immigration and Nationality Act, as
amended (8 U.S.C. 1101 et seq.), to the maximum extent feasible and
consistent with the discretion delegated to the executive branch.''
Question 3c. Are you concerned that the even though the citizenship
question was not ultimately included, just the threat will create
confusion and impact the result of 2020 Census by scaring immigrant
communities away from participating?
Answer 3c. The Census Bureau's 2019 Test showed that overall there
was no significant difference in self-response rates between forms with
and forms without a citizenship question. Thus, the results of the test
did not trigger a major change in our communications strategy.
Nationally, the current self-response rate is 64 percent, and it
continues to grow daily. Field staff are now following up with the
households that did not respond on their own. The Census Bureau notes
that there are always concerns about responding for every census and
for each of our surveys from a wide variety of people and from many
different communities. However, the Census Bureau is executing a
communications campaign designed specifically to reach immigrant
communities and other hard-to-count populations. All of our messaging
is based on comprehensive testing that demonstrated what messages
worked for a variety of audiences. The Census Bureau has continuously
emphasized that there is no reason to fear participating in the census.
The law is clear--no personal information can be shared. Under Title 13
of the U.S. Code, the Census Bureau cannot release any identifiable
information about individuals, households, or businesses, even to law
enforcement agencies. The information collected may only be used for
statistical purposes. Census Bureau staff take a lifetime oath to
protect this personal information, and any violation comes with a
penalty of up to $250,000 and/or up to 5 years in prison. The Bureau
has also emphasized how important the census is to local communities
for representation, allocation of funding, and more. A complete count
requires a grassroots effort with local officials and respected leaders
in communities working as partners. The Bureau has used traditional
advertising, digital advertising, and social media to spread the word.
If people do not want a visit by a census taker, they can avoid that by
responding securely and confidentially online, by phone, or by mail.
These messages are also being carried forward by our partners at both
the national and the local level. The Census Bureau has nearly 400,000
community partners and 1,000 national partners, significantly exceeding
our goals for 2020 and the numbers from the entirety of the 2010
Census, and many of the partners reach minority and immigrant
communities nationally and locally. Our 2020 Census partners, the
trusted voices in the communities they serve, are often the most
important and persuasive voices in the decennial census. It is critical
for them to emphasize the importance and safety of responding to the
census, along with the important fact that we include everyone
regardless of their immigration status, and the partnership support
materials we are providing to them will make this clear.
Question 4. For years, I have fought to secure funding to fully
cover the cost of At-Sea Monitors for the Northeast groundfish fishery.
Without this support, fishermen in New England would have to cover the
costs, which can be $700 per day, themselves. Many fishing communities
in New England are already struggling and these fees would drive most
remaining fishermen out of business.
That's why I'm disappointed to see that the President's budget does
not include funding tocover the cost of At-Sea Monitoring in fiscal
year 2021. This is especially important this year because I understand
that the region is considering increasing the coverage rate to 100
percent, meaning that every fishing trip would have to have an observer
on board.
Question 4a. First of all, Mr. Secretary, do I have your commitment
that NOAA will cover the full At-Sea Monitoring costs for the Northeast
multispecies groundfish fishery again this year?
Answer 4a. The Department appreciates Congress's support for at-sea
monitoring costs in the New England groundfish fishery. Effective at-
sea monitoring is essential to the success and sustainability of this
fishery. NMFS will reimburse 100 percent of industry sea day costs for
the Northeast multispecies groundfish fishery in fiscal year 2020 using
the funds Congress has specifically appropriated for this purpose.
Question 4b. I'm concerned that the President's budget does not
include the $10 million I fought for to fully fund the cost of At-Sea
Monitors. Why do you believe that this burden should fall directly on
struggling fishermen?
Answer 4b. As part of the Northeast Multispecies Fishery Management
Plan sector program, we require sectors to pay for the monitoring costs
that help them ensure that they stay within annual catch limits for
their sector. The administration recognizes and appreciates the immense
effort undertaken to provide additional resources for monitoring the
Northeast groundfish fishery to relieve the financial burden on
fishermen and their sectors. NMFS will continue to work with industry
and the New England Fishery Management Council to support these
efforts, and ensure the financial burden is minimized to the extent
practicable.
Question 4c. I have heard from constituents that the coverage
requirement from last year of about 30 percent was difficult to comply
with from a logistical perspective, so what is your plan to support the
region if the coverage rate goes up to 100 percent?
Answer 4c. There are a number of significant groundfish fisheries
in the United States that have 100 percent observer coverage.
Nevertheless, each region is different and can pose unique problems. In
the Northeast, NMFS works closely with monitoring providers and the
fishing industry to achieve the coverage requirement. As NMFS considers
whether increases in coverage levels are necessary, we will continue to
work closely with monitoring providers to ensure that our coverage
level can be supported by financial resources and personnel. NMFS has
updated logistics to support the increased coverage targets from 21-40
percent over the past 2 years and will continue to work closely with
monitoring providers and the fishing industry for any additional
increases in coverage. NMFS is also expanding the use of electronic
monitoring in the region so that industry has several options to meet
their coverage requirement.
Question 4d. I also want to continue working with you and NOAA to
ensure that the $6.5 million dollars for groundfish research that I
fought for over the past 3 years is well spent. Can you talk about the
type of research this is funding and what more can be done to best
improve our understanding of the challenges facing this fishery?
Answer 4d. NOAA appreciates Congress's continued support for
groundfish research in New England, and has funded several projects to
better understand the vulnerabilities of coastal communities to
changing environmental and ocean conditions. Most recently this funding
supported contributions to the Red Hake Research Track Assessment and
various projects working with industry, including the Gulf of Maine
Bottom Longline Survey. The new stock assessment process in the
Northeast Region allows this research to be aligned with upcoming
assessments including one for haddock in 2021, American plaice in 2022,
and Atlantic cod in 2023. NOAA is using these essential funds provided
to support research targeted at improving the science for these
assessments.
Question 5. In New Hampshire, we are seeing the impacts of climate
change firsthand. Coastal communities are already seeing infrastructure
affected by rising sea levels and flooding during high tides. NOAA is
currently funding an assessment of the impact of sea level rise and
rising groundwater levels on our seacoast routes including stretches of
Route 1A, Route 1, and I-95.
We're also seeing much heavier rainfall events that affect
infrastructure inland and around the State. We understand this and
communities in New Hampshire are starting to plan accordingly. But, at
the same time, NOAA is proposing to eliminate more than $500 million in
grant programs, which are critical to helping communities understand
and prepare for climate impacts. These grant programs like Coastal Zone
Management grants, the National Oceans and Coastal Security Fund
grants, Sea Grant and the National Estuarine Research Reserve System
leverage State and private investments to fund coastal science and
community resilience partnerships. I strongly believe that having the
knowledge and tools to protect our coastal communities is a critical
element of our national security. How will NOAA and the Department of
Commerce work with States and local communities to understand and
prepare for the effects of climate change if these programs are cut?
Answer 5. The fiscal year 2021 budget continues to fund those
aspects of climate science where there is an important Federal role,
including the following: research at the Earth System Research
Laboratories within NOAA's Office of Oceanic Atmospheric Research
(OAR); the National Integrated Drought Information System (NIDIS);
long-term observations and climate records; and research and
development associated with Seasonal-to-Subseasonal (S2S) prediction.
NOAA will also carry out legislatively mandated work on the National
Climate Assessment, and will continue to provide technical assistance
and other information to stakeholders and communities.
Question 6. One of the pillars of America's international
competitiveness is our leadership in basic and applied scientific
research and development. The Department of Commerce has an important
role in this with the scientific research performed at the National
Institute of Standards and Technology--or NIST--and the National
Oceanic and Atmospheric Administration--or NOAA. That's why I've made
increasing scientific research a priority. Since I took over as Ranking
Member 3 years ago, this subcommittee has provided a 9 percent increase
for scientific research within NIST and a 13 percent increase within
NOAA. However, this budget would reverse that progress and more. It
proposes slashing the R&D investment at NIST by 14 percent and at NOAA
by 40 percent.
Question 6a. One argument that I often hear from the administration
for cutting government investment in science, is that the private
sector will make up the difference. Given your vast experience, if the
cuts included in the President's budget are enacted, do you believe
that private sector will step in, not with applied research but with
basic, fundamental measurement science?
Answer 6a. Maintaining a robust science and technology base
requires contributions from both the Government and the private sector.
The Trump administration continues to be committed to advancing
technological development and conducting research and development (R&D)
to ensure national security, grow the economy, create well-paying jobs,
and improve the lives of Americans across this great Nation. To those
ends, Department of Commerce bureaus like NIST and NOAA continue to
engage in important research efforts. NIST specifically is central to a
number of critical national priority and emerging technology R&D areas
including quantum science, artificial intelligence, microelectronics,
cybersecurity, and advanced manufacturing. Additionally, NIST, in
partnership with the White House Office of Science and Technology
Policy, is continuing to develop a comprehensive plan to improve the
transfer of technologies from Federal laboratories to the private
sector. By improving this technology transfer, the Department and NIST
will spur economic growth, create new well-paying jobs, and increase
our global competitiveness.
Question 6b. Are you concerned about what will happen to U.S.
competitiveness if we pull back as our global competitors, like China,
continue to invest?
Answer 6b. The Trump administration's continuing, robust commitment
to key national priority and emerging technology R&D areas including
quantum science and artificial intelligence shows that there has been
no ``pull back'' from American leadership in science and technological
development. The Department of Commerce, and the administration as a
whole, recognizes that consistent and stable investment in science and
technology is a critical element to the U.S. economy and that, with
increasing growth in R&D investments and outputs in China and
elsewhere, the ability of the U.S. to dominate and take advantage of
the economic and national security benefits of technological leadership
cannot be taken for granted. That is why, from the outset, this
administration has recognized the need to unleash the power of
America's vibrant private sector, with the government as a partner, to
maintain our position at the forefront of global advancements in R&D.
To that end, the USPTO has a team of China IP experts including IP
attaches stationed in China who work to assist U.S. businesses
navigating the intellectual property protection and enforcement
processes in China. The team advises and coordinates with U.S.
Government agencies and its China counterparts to resolve IP issues,
promote U.S. IP policy, encourage effective IP protection and
enforcement in China, and secure high standards in China IP laws and
trade agreements, including the IP chapter of the recently signed Phase
One Trade Agreement between the U.S. and China. The USPTO also offers
China IP Roadshows to teach U.S. businesses about how to register and
enforce their rights in China as well as how to deal with Chinese
counterfeits arriving in the United States.
Question 7. North Atlantic right whales are one of the most
endangered species with only about 400 remaining. Since 2017, we've
lost 30 whales and have only observed 22 new calves. I'm concerned that
any additional loss of whales could endanger the long-term survival of
thespecies and could have serious detrimental impacts to our lobster
fishery in the Northeast. That's why I fought for additional research
and monitoring funding for North Atlantic right whales in the fiscal
year 2019 and 2020 bills.
Question 7a. Mr. Secretary, how is this $3 million in additional
funding in fiscal year 2020 going to be spent?
Answer 7a. NMFS is spending $1.0 million to expand our pilot
program for testing and developing ropeless fishing gear. These funds
are being used to further increase our capacity to work with fishermen,
purchase market-ready, prototype ropeless gear retrieval systems, and
reimburse fishermen for their assistance testing and providing feedback
on the new gear. We are also investing in stakeholder workshops and
technology challenges to address gear conflicts and support the
development of interoperable systems for remotely locating gear on the
seafloor.
The remaining $2.0 million will be used to enhance existing North
Atlantic right whale science and management efforts. We are continuing
to monitor the population and improve our understanding of habitat use
and distribution by conducting aerial surveys, expanding and enhancing
our passive acoustic monitoring program, investing in right whale
habitat and density modeling, and advancing the development of
satellite tagging technologies. We have also established a new
collaboration with the U.S. Navy to acquire commercial satellite
imagery and develop artificial intelligence algorithms in hopes of
eventually surveying for North Atlantic right whales. We continue
advancing our efforts to better understand and monitor right whale
health using emerging technologies such as unmanned aerial systems and
improve stranding and response efforts in coordination with Canada.
Finally, we are continuing to support efforts to reduce the risk of
entanglement through the Atlantic Large Whale Take Reduction Team and
Plan, the Right Whale Decision Support Tool, and to reduce the risk of
vessel strike through analytical assessments and efforts to improve
vessel strike risk awareness and outreach.
Question 7b. What more can be done to protect this species,
especially in light of a warming ocean that could disrupt traditional
feeding and calving areas?
Answer 7b. In light of changing oceanic conditions and the
resulting changes in right whale foraging and reproductive behavior,
broad-based measures implemented throughout the species' range provide
the most resilient protections possible. The primary threats to right
whales continue to be entanglement in fishing gear and vessel strikes.
NMFS has worked with State partners and the fishing industry to
continue to mitigate entanglements including the preparation of a
number of new management measures, investments in the development of
ropeless fishing practices, and enhancements to our network of
entanglement responders. We are currently evaluating ways to further
reduce vessel strike risk, the results of which will be detailed in a
forthcoming report. We are supporting our partners' investigations of
stranded and entangled animals, which provide critical information to
help improve our management and mitigation measures for fisheries and
vessel strikes. We continue efforts to predict and monitor how climate
change, including warming oceans, will impact and interact with
recovery efforts and population health. In particular, improving our
understanding of the drivers of right whale habitat use and
distribution will allow us to predict where right whales are likely to
be in the future, greatly enhancing our ability to establish protective
measures proactively as distributions change.
Question 8. The Consolidated Appropriations Act of 2020 requires
the release of the report about whether tariffs on imported cars and
auto parts are necessary from a national security perspective under
Section 232 of the Trade Expansion Act of 1962. The deadline for
release of the studywas January 19. However, the Department has yet to
turn over the report, relying on an Office of Legal Counsel opinion
asserting a broad claim that the report is subject to executive
privilege.
Question 8a. Congress required the release of this report, this is
not a negotiation. The Department is in violation of the law. So, will
you commit to releasing the report? Or at very least, allowing Members
of this subcommittee to see the report?
Answer 8a. This matter is in the midst of pending litigation, and
therefore we refrain from comment at this time.
Question 8b. If the President decides to impose tariffs, is the
Department prepared to implement an exclusion request process? Because
for the aluminum and steel tariffs under Section 232, the Department
was woefully unprepared. I recall initially, the Department was
expecting 6,000 exclusion requests. But as of March, the Department had
received more than 160,000 requests over 2 years--nearly 30 times what
was expected. I don't want to see those mistakes repeated.
Answer 8b. Regarding the exclusion process on steel and aluminum,
as noted in our most recent quarterly report to congressional
appropriations committees on the status of the exclusions process
pursuant to the Conference Report to the Consolidated Appropriations
Act, 2020 (Public Law 116-93) dated April 22, 2020, the Department of
Commerce has achieved great strides in accelerating the administration
of large numbers of exclusion requests since the launch of the
dedicated 232 Exclusions Portal in June of 2019. The Department's
enhancements of this process are based on experience and feedback from
stakeholders. Should the President use his discretion to impose tariffs
on autos and auto parts, the Department would continue to build on this
foundation to ensure that the administration of a new exclusion process
with sufficient resourcing could be done in a timely and transparent
way.
______
Questions Submitted by Senator Patrick Leahy
During the Commerce, Justice, and Science Appropriations
subcommittee hearing on March 5, 2020, you affirmed your testimony that
the Department of Justice initiated the request to add a citizenship
question to the 2020 Census and that the Department of Commerce was
responding to that request when it took steps to do so.
Question 1. Is it your testimony today that your personal efforts
to add the citizenship question were solely in response to the Justice
Department's request for the question?
Answer 1. Obtaining complete and accurate information for use in
determining citizen voting age populations to enforce the Voting Rights
Act is a legitimate government purpose, and I did so because of the
request received by the Department of Justice.
Question 2. Why did you on June 21, 2018 file a supplemental
explanation with the court presiding over pending litigation clarifying
that it was you and the Commerce Department that had in fact initiated
the request for a citizenship question in the census?
Answer 2. This question's description of the content of the
supplemental memorandum I filed on June 21, 2018, regarding the
administrative record in the census litigation is not accurate. On the
contrary, that memorandum reiterated what I have said all along, and
what has been confirmed repeatedly through extensive documentation we
have provided as part of the litigation process and the accommodations
process with Congress over this issue: that, on December 12, 2017, the
Department of Justice sent a letter formally requesting that the Census
Bureau reinstate on the 2020 Census questionnaire question regarding
citizenship, which launched the extensive review process described in
my March 26, 2018 decision memo to consider whether to do so. As I
stated in my supplemental memorandum, my intention in filing it was to
provide further background and context regarding that process.
Question 3. Once you filed the supplemental explanation with that
court, why did you not submit the same or a similar document to
Congress, especially because your position in the March 26, 2018
memorandum was identical to your inaccurate testimony before Congress
at the time?
Answer 3. As I confirmed once again in my testimony, my statements
were correct then, and they were true then. They are correct now, and
they are true now.
As explained above, the supplemental memorandum I filed on June 21,
2018 provided background and context regarding the process described in
my March 26, 2018 memorandum. Based on the content of the testimony I
delivered before Congress, I determined there was no need to provide
such background to supplement this testimony.
Question 4. If you claim your conversations with executive branch
officials regarding the citizenship question are privileged, why did
you not claim executive privilege in your filings with the court that
memorialized some of those very conversations?
Answer 4. I cannot answer this question because it is not clear to
which filings or conversations it refers.
Question 5. Has the President ever asserted privilege over any of
your communications related to your discussions involving the decision
to add the citizenship question to the 2020 Census?
Answer 5. The President asserted Executive Privilege over documents
at issue in the case of Comm. on Oversight & Reform, U.S. House of
Representatives v. Barr, et al. That case is currently being litigated.
Question 6. Please provide other specific examples of the Commerce
Department refusing to answer questions from Congress by asserting the
potential assertion of privilege without actually asserting any
privilege.
Answer 6. This question mischaracterizes my March 5 testimony. In
that testimony, I stated that my conversations with people in the
Executive Branch are privileged and are subject to the constraints of
that privilege.
Question 7. Who was the first individual not a member of the Trump
administration to express an interest in adding the question with you
after the 2016 election?
Answer 7. I do not recall who the first individual not a member of
the Trump administration was to express an interest in adding the
question with me after the 2016 election.
Question 8. Do you agree with Chief Justice Roberts that the
administration's justification to add the citizenship question based on
a need to enforce the Voting Rights Act was ``contrived''?
Answer 8. While I accept the authority of the Supreme Court, I also
respectfully disagree with the Court's ruling. Obtaining complete and
accurate information for use in determining citizen voting age
populations to enforce the Voting Rights Act is a legitimate government
purpose, and I did so because of the request received by the Department
of Justice.
_______________________________________________________________________
Now that you have filed these publicly available documents
memorializing conversations with the court, any applicable privilege,
executive or otherwise, is waived.
Question 9. As such, who was the first administration official to
suggest or ask you to consider adding a citizenship question on the
census?
Answer 9. The assertion in the background to this question is
incorrect. The decision to reveal the content of some communications I
have had with some Executive Branch officials does not automatically
waive that privilege with respect to all communications I have had with
any Executive Branch officials.
I decided to reinstate a citizenship question on the 2020 Census
because of the request received by the Department of Justice. My
conversations with other Executive Branch officials are covered by
Executive privilege, and the issues are currently being litigated.
_______________________________________________________________________
You also testified at the March 5 hearing that Kris Kobach asked you to
speak about adding a citizenship question or other questions to the
census. However, according to one email between your executive
assistant and your wife, a second from Kris Kobach to you, and a third
between Mr. Kobach and your chief of staff, that call actually occurred
at the request of Steve Bannon.
Question 10. Is it true that you communicated with Kris Kobach
about the citizenship question and other questions at the direction of
Steve Bannon?
Answer 10. Steve Bannon did not ``direct me'' to do anything with
regard to the citizenship question. Consistent with what we have
publicly disclosed over the course of litigation on this issue, he
asked me to speak with Kris Kobach, who raised with me the issue of the
citizenship question.
Question 11. According to an October 2018 court filing by the
administration, you ``recalled'' having spoken with Steve Bannon about
a citizenship question in the spring of 2017. What was discussed during
that conversation?
Answer 11. My conversations with other executive branch officials
are covered by Executive privilege, and the issues are currently being
litigated.
Question 12. Did you ever mention to then-Attorney General Sessions
in 2017 that the addition of a citizenship question to the Census would
be beneficial for apportionment or redistricting purposes?
Answer 12. My conversations with other executive branch officials
are covered by Executive privilege, and the issues are currently being
litigated.
_______________________________________________________________________
You also testified that you ``filed publicly'' the process used to
consider the addition of the citizenship question and the
justifications relied upon to add the question. I am assuming you meant
that you filed a document describing the process with the court.
Question 13. Why did you not provide Congress with that public
filing directly, given that you were asked by multiple Members of both
the Senate and House in 2018 about this question and you never once
mentioned that your efforts to add the question preceded any
involvement from the Justice Department?
Answer 13. My testimony regarding the Department of Commerce's
public filing of the process used to reach the conclusion that a
citizenship question should be added to the 2020 Census referred to my
decision memorandum dated March 26, 2018, and posted on the
Department's website at: https://www.commerce.gov/sites/default/files/
2018-03-26_2.pdf.
This memorandum publicly described, for all to view, the
comprehensive review process initiated by the Department and led by the
Census Bureau to take a hard look at the Department of Justice's
request to add such a question to aid in the enforcement of the Voting
Rights Act. Over the course of eight pages, the memorandum explains in
great detail the bases on which I formed my conclusion that adding such
a question was appropriate. This memorandum constitutes ample notice to
Congress regarding the process leading to and reasons for directing
that the question be added.
Question 14. Are there any other steps you took or communications
you had with anyone inside or outside the Trump administration
regarding the citizenship question that you have not disclosed to the
courts or Congress, regardless of whether you have been asked directly
about it?
Answer 14. The steps taken with regard to adding a citizenship
question to the 2020 Census have been publicly disclosed over the
course of litigation on this issue. The process with regard to the
Department of Commerce's consideration of the Department of Justice's
request to add this question are outlined at length in my decision
memorandum dated March 26, 2018, which is publicly available on the
Department's website at https://www.commerce.gov/sites/default/files/
2018-03-26_2.pdf.
My communications with Executive Branch personnel are confidential,
and the issues involved are currently being litigated.
As I considered the Department of Justice's request to add a
citizenship question to the 2020 Census, I had numerous conversations
with stakeholders outside the Executive Branch who had an interest in
this matter, which have been disclosed to the courts and/or Congress.
_______________________________________________________________________
Various States and cities are implementing policies to encourage
Americans to practice ``social distancing,'' one of the most critical
ways we can limit the spread of COVID-19. An increasing number of
jurisdictions are closing schools, businesses, restaurants, bars, and
are even implementing curfews, to encourage Americans to stay home--all
just 2 weeks before Census Day.
Census Question 15. What plans does the Census Bureau have in place
to ensure an accurate Census count amidst the unique challenges
presented by the COVID-19 outbreak?
Answer 15. The peak operations of the 2020 Census are underway.
Also, the operation is conducted in accordance with CDC guidelines. We
are continuing to adapt as needed to ensure a complete and accurate
2020 Census.
The Census Bureau's 2020 Risk Mitigation Plan LC045--Major
Disasters took into account epidemics/pandemics in addition to major
disasters such as an earthquake, flood, tornado, or terrorist attack,
all of which can affect the populations of a geographic area (e.g.,
town, county, State) and prevent people from self-responding to the
2020 Census or being contacted by field staff. Major disasters can
disrupt operations at key facilities (e.g., Headquarters, National
Processing Center, Regional Census Centers, and Area Census Offices)
and supporting infrastructure (e.g., Post Offices and
telecommunications).
As the actions to be taken would depend on the type, timing, and
extent of the disaster, the Census Bureau's contingency plan has always
provided for a rapid response team to assess the disaster and recommend
a course of action to senior managers. The 2020 Census Portfolio Risk
Contingency Plan for Risk LC045--Major Disasters identifies the
following key actions:
--Realization that the event has occurred
--Formation of Rapid Response Team
--Immediate assessment of the event by the Rapid Response Team
--Formulation of an action plan (once approved by management) to
address the specific disaster
As soon as it became apparent that action was needed in response to
COVID-19, executive and program management teams began working
diligently to respond to the situation on a daily basis. In line with
the contingency plan, a task force was formed from offices across the
Census Bureau.
Our advanced planning for the 2020 Census has led to successful
self-response rates. More than 64 percent of the Nation's households
have already responded to the 2020 Census. Our aggressive efforts to
promote self-response are bringing in more responses daily. As we
continue to promote response, we emphasize that it has never been
easier to respond to the census, whether online, over the phone, or by
mailing back the paper questionnaire--all without having to physically
interact with a census taker.
The Census Bureau launched a Fusion Center comprised of staff from
all parts of the operations to monitor the networks, field operations,
news reports, and Internet traffic in real time and immediately flag
emerging issues for attention. This consolidation of information allows
Census Bureau leadership to quickly gain insight into developments
across the country as they happen.
In addition to these efforts, the Census Bureau has increased and
adapted its communications and outreach to better communicate the
operational adjustments it is making to the 2020 Census in light of the
COVID-19 outbreak. The Census Bureau has increased the budget for paid
media from $240 million to $381.4 million with incremental investments
across all audiences and plans to expand the number of languages in
which paid media is disseminated from the original 14 core languages to
45 languages. Also, the Census Bureau quickly updated the content of
its messaging to reflect COVID-related realities--including our
``Recovery'' commercial and online video spot.
The Census Bureau worked with its partners to adapt its outreach
materials to place a heavier focus on digital and other platforms while
people are interacting more online from home and avoiding gatherings in
public spaces. The Census Bureau provided for more advertising in
places people continue to visit, such as grocery stores and other
essential businesses, and it is implementing innovative media
placements such as flyers on pizza boxes to adjust for changing
consumer behaviors.
We continue to ask Members of Congress to encourage constituents to
participate in the Census and to cooperate with census takers. In fact,
your assistance in promoting census response is invaluable in
furthering our efforts.
Census Question 16. How will the Bureau ensure that Census
enumerators keep themselves healthy and avoid contracting or spreading
the virus from home to home when conducting home visits?
Answer 16. Due to the COVID-19 pandemic, the Census Bureau has
adjusted 2020 Census operations to protect the health and safety of the
American public and Census Bureau employees and ensure a complete and
accurate count. The Census Bureau implements guidance from Federal,
State, local, and Tribal authorities regarding COVID-19.
In-person activities including enumeration, office work, and
processing activities will incorporate the most current guidance from
authorities to ensure the health and safety of staff and the public.
The Census Bureau is closely coordinating the acquisition of needed
personal protective equipment (PPE) for field and office staff through
the Department of Commerce. We will continue ordering PPE as needed.
The Census Bureau has mandated that all staff who interact with the
public (census takers, ongoing surveys staff, partnership and
recruiting specialists, etc.) wear masks while conducting their work.
The Census Bureau and the CDC released a joint statement that
highlights, ``Participation in 2020 Census interviews should present a
low risk of transmission of COVID-19.'' You can read more at https://
www.census.gov/newsroom/press-releases/2020/census-bureau-cdc-2020-
census-followup.html.
Census Question 17. Have there been any discussions to extend the
deadline for responses to the census in order to limit the number of
enumerators being sent from home to home in the midst of this crisis?
If so, what is the status of those conversations?
Answer 17. Due to the COVID-19 pandemic, the Census Bureau already
extended the time for field work beyond its originally planned
schedule, and self-response will continue until operations in the field
conclude on September 30, 2020. On August 3, the Census Bureau
announced updates to the plan that will include enumerator awards and
the hiring of more employees to accelerate the completion of data
collection and apportionment counts by the statutory deadline of
December 31, 2020.
As it conducts operations, the Census Bureau continues to monitor
the changing conditions, engage with officials at the State and local
levels, and use daily information provided by FEMA.
Please visit https://2020census.gov/news-events/operational-
adjustments-covid-19.html for more detailed information about the
adjustments to the 2020 Census operations. This page will be updated as
the ongoing response to COVID-19 develops.
It was recently reported that the 2020 Census Paid Media Campaign,
which funds public service announcements about the Census through
community media organizations, contracted with an arm of the state-run
China Central Television for one of these announcements. After the
contract was reported, the channel, CCTV4, was removed from the list of
vendors with whom the Campaign is working.
Question 18. Was this reporting accurate?
Answer 18. The reporting from Axios cited in this question
contained inaccuracies. It has since been revised to address these
inaccuracies and reflect the fact that the Census Bureau has never
purchased media from Chinese state-owned companies.
Question 19. If so, why was the channel removed from the list of
vendors immediately after the reporting broke? Is the contract is still
in place?
Answer 19. See answer to Question 18 above.
Question 20. Does the Census Bureau have any restrictions or
guidelines in place related to working with foreign government media
outlets to execute the 2020 Census?
Answer 20. The Census Bureau set a very high standard when its
communications contract was awarded in 2016 that all materials would be
100 percent made in America and vendors would be 100 percent based in
America. Our contractor and their subcontractor have met that goal for
the 2020 Census paid media campaign.
_______________________________________________________________________
Last month, it was reported that the Republican National Committee sent
a fundraising letter labeled 2020 Congressional District Census to
Americans across the country just weeks before the real census survey
is due to arrive. This misleading document has the very significant
potential to depress response rates, increase the potential of an
inaccurate count and the likelihood that more Census workers will be
required to follow with non-responsive households. Legislation was
passed in 2010 to prevent exactly this sort of misrepresentation.
Question 21. Are you aware of this RNC document?
Answer 21. Yes.
Question 22. Do you commit to taking affirmative steps to mitigate
the damage caused by this misleading document?
Answer 22. The Census Bureau published a letter on its website
urging ``businesses and organizations that conduct mass mailings or
commercial solicitations to avoid using likenesses of the U.S. Census
Bureau and 2020 Census materials that may confuse recipients and the
public . . .'' as to their origin or purpose. As reported in the news
media, the RNC announced that it will not continue these mailings.
The Department of Commerce and the Census Bureau do not have
enforcement authority.
Question 23. What steps do you, or does the Census Bureau, take to
ensure misleading and fraudulent census-related advertisements,
mailings, emails, etc., do not confuse recipients and impact the 2020
Census?
Answer 23. The Census Bureau continuously monitors social media to
proactively identify cases of mis- and disinformation, regardless of
their sources. It has a dedicated inbox, [email protected], to receive
information from the public.
Some examples of how the Census Bureau's monitoring efforts are
catching online misinformation and helping us counter this
misinformation are as follows:
--The Census Bureau discovered a false rumor circulated online
starting last summer stating that individuals posing as workers
for the ``Department of Home Affairs'' were going door-to-door
to check identification for the 2020 Census. It posted an
authoritative refutation of this rumor on its website.
--The Census Bureau discovered a false rumor that an app or special
software would need to be downloaded to use the online response
option, and that the online response wouldn't be available on
computers made before 2008. It, once again, posted a refutation
on its website.
If you or your constituents become aware of any false rumors like
those listed, please report them to our Census Bureau immediately so we
can work to counter them.
In addition to continuous monitoring, the Census Bureau has
partnered with tech companies on preventing misinformation and
disinformation and ensuring accurate information is available to the
public about the 2020 Census.
_______________________________________________________________________
A GAO Report issued in early-February 2020 highlighted several ways
that the Census Bureau was falling behind on its quotas, goals, and
plans relating to the 2020 Census.
Question 24. Have you read this report?
Answer 24. Census Bureau staff briefed me on the contents of the
GAO report to which you are referring soon after its release, and they
took action on all points in that report. The partnership and hiring
goals were met and surpassed.
Question 25. The report indicated that the Bureau has fallen short
of its interim recruiting goals to hire staff members since September
2019, and the staff is currently thousands of members short of where it
was projected to be by February 2020. Can you update the subcommittee
on your recruitment and hiring?
Answer 25. The Census Bureau worked to aggressively recruit
potential employees, and the goal for applicants was achieved. The
Bureau continues to receive applications for 2020 Census positions, and
it currently has a robust applicant pool of more than 3 million
applicants, which significantly exceeds our national goals.
So far, more than 940,000 job offers have been made, intentionally
and significantly more than the number expected to work in the field to
account for those who decline the position, do not successfully
complete required training, or do not complete the full term of their
position. Also, the Census Bureau will continue conducting replacement
training to maintain the necessary number of staff in the field to
complete the work.
Question 26. The report indicated that the Bureau set a goal to
form 300,000 community partnerships by March 2020, but that currently,
only 240,000 partnerships have been formed. Census Bureau Director
Dillingham in his recent testimony to the House Oversight Committee
said, regarding this goal, ``We will meet our target by March 1 and
then surpass it.'' Can you update the Committee on the number of
community partnerships?
Answer 26. The Census Bureau met its goal of 300,000 community
partners by March 1, and there are currently nearly 400,000 community
partners across the country, significantly more than the 256,000 from
the entirety of the 2010 Census.
Question 27. The report indicated that the Bureau is significantly
behind on its IT infrastructure. This includes not ``meeting key near-
term IT system testing schedule milestones for five upcoming 2020
Census operational deliveries,'' including non-response follow up
procedures for households that do not respond to the Census. Can you
explain where the Bureau's IT operations currently stand? What is the
current status of the non-response follow up procedures?
Answer 27. All of the systems for the 2020 Census are on track and
ready for operations. The Census Bureau has met every testing and
operational deadline for its IT systems. Those systems have performed
successfully on all fronts.
The Census Bureau agreed with GAO's recommendation on nonresponse
follow-up procedures and has updated the 2020 Census operational plan
accordingly.
Question 28. The report indicates that in April 2019, GAO made
recommendations to strengthen the Bureau's protection of the collected
information, raising concerns about the safety of the information from
hackers. Have those recommendations been fully implemented? What steps
has your office taken to prevent against hacking of information that
will be collected on millions of Americans?
Answer 28. Of the 112 recommendations from GAO for the 2020 Census,
only 21 remain open, and the Census Bureau has prepared action plans
for all 21. We completed the planned action for 14 of those. For 6 of
them, the planned actions are scheduled for completion in 2021 or 2022.
One is planned for the 2030 Census. The Census Bureau's cybersecurity
systems have worked successfully as designed to keep data secure. The
Census Bureau has implemented a defense-in-depth approach that
compartmentalizes our systems, allowing problems to be isolated, and
provides multiple layers of security that includes leading industry
tools that restrict, filter, and monitor incoming traffic. A dedicated
team of cybersecurity experts, from leading industry firms and Federal
agencies, is working together to secure our data and systems. Our
systems are designed to contain cyber threats and sustain survey
service even in the event of threat to ensure the American people that
their data is safe. All data collected and held is encrypted both at-
rest and in-transit, and there are strict access controls, requiring
two-factor authentication for all system users.
Following best practices and Federal requirements, the Census
Bureau has implemented and tested a multilayered defense model
comprised of proven technology, processes, and policies designed to
safeguard against and continuously monitor for cyber threats. In
addition, the 24x7 Census Bureau security staff are trained to
proactively identify and detect security threats and to protect against
them.
_______________________________________________________________________
A GAO Report issued in early-February 2020 highlighted several ways
that the Census Bureau was falling behind on its quotas, goals, and
plans relating to the 2020 Census.
Question 29. The report indicated that in January 2020 the Bureau
had performance problems with its online response program, designed to
allow 600,000 individuals to respond to the Census online, and switched
to an ITS back up operating system in February 2020. Such a last minute
switch, according to the report, can cause significant technical
problems and risks, especially since it was not used as extensively as
the original system. Can you explain what quality checks have been
performed to date on the second online response system, and if there
have been any technical issues with this second operating system? Do
you have a third option in place in case this second online system
fails, as the first did?
Answer 29. Internet self-response has performed successfully on all
fronts, and the website has never been down since it officially opened
to the public on March 12. Significantly more people than expected have
chosen the Internet response mode. There have been no issues with
capacity because of the design and testing to accommodate many times
more users than have been on the system concurrently.
______
Questions Submitted by Senator Lisa Murkowski
A recent report from NOAA shows that in 2018, U.S. fishermen landed
9.4 billion pounds of fish valued at $5.6 billion, a third of which was
from Alaska. Alaska's commercial fisheries support about 37,000 jobs
and $2.1 billion in labor income across our State, which is home to
three of the top seven fishing ports in the U.S. One of the core
missions of the National Marine Fisheries Service is the sustainable
management of our fisheries, which enables all this economic activity
to take place. NMFS's fisheries management efforts rely on annual
surveys conducted by the regional science centers to determine
sustainable harvest levels. Last year, I fought hard to secure an
increase for fishery surveys, data collection, and stock assessments
after hearing concerns in Alaska that surveys were at risk of being cut
due to budget pressures. I am extremely disappointed to see this
increased funding level was not included in the fiscal year 2021 budget
request. I was also disappointed to see the agency's response to my
question on this topic last year, which stated that NOAA is being
forced to choose between personnel and survey funding. NOAA should not
be having to make trade-offs that jeopardize its core mission of
managing our fisheries and supporting U.S. seafood producers.
Question 1. Please provide a detailed explanation of how the
funding increase for Fishery Surveys, Data, and Stock Assessments, and
the accompanying report language, is being operationalized in Alaska
and on the West Coast.
Answer 1. A high priority for National Marine Fisheries Service
(NMFS) and the Alaska Fisheries Science Center (AFSC) continues to be
staffing and securing vessel time for research surveys that support
essential stock assessments, sustainable management of fisheries, and
the conservation of protected resources. With the increase of $2.0
million provided in fiscal year 2020 for NMFS to maintain historical
surveys in Alaska and the west coast, $1.1 million was distributed to
AFSC, and $0.9 million to the Northwest Fisheries Science Center
(NWFSC). These funds were critical for allowing the AFSC to plan to
conduct three bottom trawl surveys, and to permit the NWFSC to utilize
four vessels to conduct three groundfish surveys in fiscal year 2020.
However, in response to the COVID-19 situation NMFS had to cancel the
AFSC's surveys to the Bering Sea and the NWFSC had to cancel 2 of the 4
groundfish surveys. The NWFSC hopes to conduct the two groundfish
surveys planned between August and September 2021.
Question 2. Alaska's survey coverage has been maintained at a
stable level of 5 boats for decades. Why isn't the agency requesting
the funds it needs for this core part of its mission? How does NOAA
plan to accurately survey and assess fish populations while contending
with other budget pressures?
Answer 2. NMFS will continue to conduct Alaska bottom trawl surveys
and cooperative research, in addition to west coast groundfish surveys
in fiscal year 2021. NOAA will continue to conduct surveys and produce
stock assessments nationwide as part of its national stock assessment
process.
Question 3. What is the agency's long-term plan to make sure
surveys keep pace with the changes we are seeing in the North Pacific,
Bering Sea, and Arctic? What plans does NOAA have to alter or increase
survey coverage in Alaska in order to capture the changes in fish
distribution that are attributable to climate change, such as in the
Northern Bering Sea?
Answer 3. With the additional challenge of a rapidly changing
marine environment and the subsequent expansion of species
distributions, the complexity of the NMFS work in Alaska has also
increased. The northern Bering Sea bottom trawl survey was first
accomplished in 2010 and has been conducted annually for the last 3
years (2017-2019). Due to the expansion of commercial species such as
cod and pollock into the northern Bering Sea (and possibly the southern
Chukchi Sea), the AFSC added survey coverage and 276 person sea days to
bottom trawl survey efforts of the 198,858 km2 northern Bering Sea.
This survey was planned to be conducted in 2020 before the COVID-19
pandemic occurred. Unfortunately, in response to the COVID-19
situation, NOAA had to make the difficult decision in May to cancel
Alaska fisheries surveys to the Bering Sea. As an agency, NOAA is
striving to meet its core mission responsibilities while balancing the
realities and impacts of the current health crisis. NMFS and the AFSC
are continuing to work through options to retain historical surveys and
prioritize core surveys.
_______________________________________________________________________
At last year's Commerce Department budget hearing, I submitted a
question for the record regarding the absence of any substantial
funding request for implementation of the new Pacific Salmon Treaty
agreement with Canada. Despite the need for roughly $100 million in
2020 to meet the commitments of the new Treaty, NOAA requested $11.2
million in funding for the Treaty in fiscal year 2020. When I asked
why, I was told by the Department that this funding was not included in
the fiscal year 2020 budget request because the costs associated with
the new Agreement were not finalized prior to the formulation of the
President's fiscal year 2020 budget request. Luckily, Congress took
this need seriously and through bipartisan efforts we were able to
include $35 million in NOAA's appropriation to support the Pacific
Salmon Treaty in fiscal year 2020. As we begin our work on fiscal year
2021, we have a clear picture of what funding is needed to support this
Treaty agreement. Yet NOAA has again requested far less than what is
needed for the Pacific Salmon Treaty.
Question 1. Please explain why the Department requested funding
that is substantially less that what is needed for implementation and
mitigation of the Pacific Salmon Treaty in fiscal year 2021.
Additionally, please explain why this funding cut was requested even
when the Department has a clear picture of the funding needed under the
Treaty agreement.
Answer 1. While the fiscal year 2021 President's request does not
retain the additional $20 million provided in the fiscal year 2020
appropriations for implementation of the Pacific Salmon Treaty (PST),
it does include $16.2 million for necessary implementation activities
that are needed to implement the new agreement. Within available
appropriated funds, NMFS will continue to support the ongoing Pacific
Salmon Treaty implementation and provide personnel support to the
Pacific Salmon Commission's technical committees as well as a broad
range of salmon stock assessment and fishery monitoring programs, which
produce information required to implement Pacific Salmon Treaty
provisions.
Question 2. How are States expected to implement this Federal
Treaty agreement without sufficient Federal funding?
Answer 2. States contribute substantial in-kind resources to
Pacific Salmon Treaty monitoring. The U.S. Section actively prioritizes
data and analysis needs for Pacific Salmon Treaty implementation in
light of the available funding.
Question 3. NOAA provided a no-jeopardy finding for the Treaty
agreement under the Endangered Species Act, but predicated this no-
jeopardy finding on the availability of funding to fulfill the
provisions in the new Treaty. How is NOAA able to predicate a no-
jeopardy finding on the availability of funding but not demonstrate
support for this funding in its budget?
Answer 3. In April 2019, NMFS completed a biological opinion on the
delegation of management authority to Alaska for some southeast Alaska
fisheries. In May 2020, NMFS completed two additional biological
opinions on the 2020 Pacific Fishery Management Council ocean salmon
fisheries, and on the 2020 Puget Sound salmon fisheries. The southeast
Alaska biological opinion evaluated the effects of discretionary
domestic actions associated with implementing the new Pacific Salmon
Treaty agreement on species listed under the Endangered Species Act, as
well as a conservation program for threatened Puget Sound Chinook
salmon and endangered Southern Resident killer whales (SRKW). This
conservation program includes conservation hatcheries for critical
Puget Sound Chinook salmon stocks, hatchery production for increased
prey for SRKW, as well as habitat improvements. The conservation
program was also evaluated as part of the environmental baseline in
NMFS' subsequent biological opinions on the Pacific Fishery Management
Council ocean salmon fisheries, and the Puget Sound salmon fisheries.
NMFS took considerable care to apply consistent approaches and the best
available science in each of these three biological opinions.
These biological opinions considered the conservation program and
its anticipated benefits to Puget Sound Chinook salmon and Southern
Resident killer whales as part of the action and environmental
baseline. NMFS expects the biological opinion on the Southeast Alaska
fisheries will remain in effect through the duration of the 2019 PST
Agreement. Although the recent Puget Sound and Pacific Fishery
Management Council opinions are for 1 year, NOAA intends to complete
longer-term biological opinions on these fisheries as soon as
practicable and expects those longer-term opinions to be in effect
during the 2019 PST Agreement.
NOAA assumes that the conservation program would be implemented
over the duration of the new Chinook salmon regime as proposed. The
benefits from reduction in harvest in southeast Alaska, Pacific Fishery
Management Council ocean, and Puget Sound salmon fisheries resulting
from the 2019 PST Agreement will be effective immediately. However, it
is important to note that anticipated benefits related to the
conservation program will not be realized for at least four to 5 years
into the future as fish from the conservation hatchery programs reach
maturity in the oceans and productivity improvements from habitat
restoration and protection actions are realized.
_______________________________________________________________________
The Census Bureau will be implementing a new privacy system, known as
`differential privacy,' for the first time starting with the 2020 U.S.
Decennial Census. We know that the method is meant to balance data
accuracy with data privacy. However, I am worried about the impact to
small population groups such as American Indians and Alaska Natives. A
recent analysis by Randall Akee, (presented at the National Academy of
Sciences https://sites.nationalacademies.org/DBASSE/CNSTAT/
DBASSE_196518) of certain Alaska Native villages found that applying
differential privacy could result in a nearly 30 percent undercount of
American Indian/Alaska Native people in 2020 compared to Bureau's data
sets from the 2010 U.S. Decennial Census. This could thus impact the
U.S. Government's trust responsibility, which is grounded in the U.S.
constitution and Federal-Tribal treaties. Many agencies meet this
responsibility and often rely on the Bureau's data for their formula
allocations. An undercount will potentially reduce a Tribe's funding. I
believe that the Bureau is aware of this problem but I want to ask you
about progress in the development of privacy systems that meet user
needs as well as protecting confidentiality.
Question 1. Does the Bureau have enough time to develop and
implement another privacy system, given that the 2020 Census has
started? How much undercount of Alaska Native villages is acceptable,
given that the data are essential for helping the government meet its
Federal obligations to Tribes?
Answer 1. I am confident that the Census Bureau will successfully
deploy the 2020 Disclosure Avoidance System (DAS) on time to produce
high quality data products while protecting the privacy of respondents,
as required by law. Modernizing our privacy protections is imperative.
Were the Census Bureau to rely on the traditional approaches to privacy
protection that we have used in previous decades, namely the swapping
of individual household records across geographies, meeting our
statutory obligation to protect respondent privacy would require such
high swapping rates that the resulting data would be rendered
essentially useless. Consequently, the Census Bureau sees no viable
alternative to comply with our Title 13 obligations but to modernize
our disclosure avoidance methods through the application of
differential privacy.
The 2010 Demonstration Data Products, which were released in
October 2019, were the first production run of the DAS' TopDown
Algorithm at the quasi-full scale of the decennial census. This
production run demonstrated that the algorithm can effectively protect
privacy in the billions of tabulations necessary to produce the 2020
Census data products. However, as data users have noted in feedback to
the Census Bureau at the December 2019 National Academies' workshop and
in the media, the 2010 Demonstration Data Products did contain
inaccuracies and distortions that needed to be addressed. The DAS team
has been diligently identifying and implementing solutions to address
these shortcomings.
The Census Bureau works diligently to minimize the occurrence of
undercounts for any population group, including the AIAN population. To
that end, the Census Bureau does not consider any undercount of Alaska
Native villages resulting from the application of privacy protections
to be acceptable.
Improvements to the DAS will continue over the coming months, and
the Census Bureau is working closely with a number of expert groups to
assess and report out on these improvements. The Census Bureau is
committed to producing high-quality data, while protecting the privacy
of respondents. The 2020 Census Data Products will reflect that
commitment.
Question 2. The Bureau's National Advisory Committee on Race,
Ethnic, and Other Populations recommended that the agency's Data
Stewardship Committee use 100 percent counts for the AIAN population
for purposes of Federal allocation formulas. Does the Bureau plan to
provide this data for agency formulas?
Answer 2. Given the widespread use of Census data for Federal
funding allocations, and the transparency necessary to ensure that
these funds are equitably distributed, the confidentiality restrictions
of Title 13, Section 9 preclude producing two sets of data--one that is
publicly released, and one that is provided confidentially to funding
agencies. Consequently, the Census Bureau is instead focusing on
improvements to the DAS to maximize the accuracy of the official 2020
Census AIAN population counts, while protecting the privacy of the
individuals within these communities. In consultation with the National
Congress of American Indians, the Alaska Federation of Natives, Tribal
leaders, and expert data users representing AIAN communities, the
Census Bureau has developed a set of accuracy measures against which it
can assess and report on the success of these improvements over the
coming months.
_______________________________________________________________________
In the fiscal year 2021 budget request, the Department highlights the
importance of mapping in Alaska and the Arctic, noting that these areas
lack the comprehensive maps available to much of the Nation. The fiscal
year 2021 budget request includes $8.5 million to map and explore the
U.S. EEZ and Alaska, of which $4.4 million will fulfill the President's
directive to map Alaska's nearshore, as well as funding for existing
navigation and mapping programs. While I am glad to see focused support
for nearshore mapping in Alaska, I remain concerned that efforts to
conduct basic hydrographic surveys in the Arctic are still lagging.
NOAA has continued to underfund hydrographic charting in the Arctic
while ignoring congressional direction to accelerate charting of the
huge backlog. This budget proposes to decrease funding for hydrographic
survey priorities and contracts by $5 million. I supported Report
language in last year's CJS bill pointing out the massive backlog of
charting work in the Arctic and directing NOAA to accelerate the
acquisition of survey data through the use of contractors. In addition,
NOAA was directed to utilize all contractors that are available,
qualified, and experienced in the Arctic for hydrographic surveys
there. It is my understanding that NOAA has disregarded this directive
and continues to fall further behind on Arctic charting. This failure
to leverage private sector capabilities is on top of the fact that one
of NOAA's two survey vessels that had been operating in Alaska has been
re-assigned to Hawaii.
Question 1. How is NOAA abiding by this congressional directive to
utilize multiple, technically qualified surveyors to make real progress
in charting the Arctic waters in Alaska?
Answer 1. NOAA has the responsibility to survey and chart the
entire U.S. coast and EEZ, particularly in priority areas for
navigation. In December 2019, NOAA awarded a $250 million hydrographic
services contract to seven of the Nation's most qualified private
sector hydrographic survey contractors to complete out-year work for
the Office of Coast Survey (OCS). OCS has made a significant investment
in Alaska and the Arctic. OCS uses a robust model that considers
navigational risk, under keel clearance of commercial vessels, age of
hydrographic surveys, and other environmental factors across the entire
Nation to determine where best to utilize its funding to deliver the
most value to America.
Fiscal year 2020 hydrographic survey plans include four surveys in
Alaska and the Arctic region, 50 percent of which will be done via
multiple qualified survey contractors.
Arctic
--Norton Sound.--This survey will improve the safety of maritime
traffic and services available to remote coastal communities by
reducing the current risk of unknown water depths. The last
hydrographic surveys of this area occurred in the late 1890's.
--Newenham.--This survey will improve the safety of maritime traffic
and services available to Bethel and communities around
Goodnews Bay by reducing the current navigation risk due to
unknown hazards.
--Herendeen Bay.--This hydrographic project addresses a specific
survey request from the Alaska Marine Pilots. The results of
this survey will be used to update charted soundings and
contours as well as increase the navigational safety of those
mariners seeking this bay for safe refuge.
--North Slope of Alaska.--This survey will update critical charted
contours along the north slope of Alaska from Point Barrow to
the Canadian border.
Alaska
--Glacier Bay.--Frequently visited by cruise ships and tourist
vessels, modern surveys will increase maritime safety and
address uncharted areas exposed by receding glaciers in this
area.
--Southeast Alaska.--This project will provide modern bathymetric
data for Whale Pass, Thomas Bay, and Endicott Arm at Dawes
Glacier. Similar to Glacier Bay.
In fiscal year 2019 there were also four survey projects in Alaska,
one of which was conducted by a qualified survey contractor.
Question 2. How will contracts and private sector surveyors be
utilized to fulfill the President's recent Memorandum on Ocean Mapping
of the U.S. EEZ and Alaska?
Answer 2. The strategies being developed in response to the
Presidential Memorandum on Ocean Mapping of the United States Exclusive
Economic Zone and the Shoreline and Nearshore of Alaska recognize that
Federal agencies will depend on contract surveyors and non-Federal
partners to meet the requirements laid out in the Presidential
Memorandum. NOAA currently has the capacity to execute additional task
orders and allocate additional funds as requested in the fiscal year
2021 President's budget to maximize survey and mapping efforts in
support of the Presidential Memorandum.
_______________________________________________________________________
Year after year, the Department consistently prioritizes NOAA's own
programs over fulfilling the intent of the SK Act. Report language that
I asked for directing NOAA to obligate at least 15 percent of the
transferred funds to the competitive grant program was not followed
because the agency cannot fund the competitive grant program from the
funds transferred into its Operations, Research, and Facilities
Account. I understand that Congress is responsible for determining the
amount of the transfer from the Promote and Develop account, and
whatever balance is left behind is available for competitive grants to
support the development of our Nation's fisheries. That is why I fought
extremely hard last year to ensure that $8 million remained in that
account so we would have a viable grant program in 2020. But the
Department of Commerce needs to be a partner in this effort, and work
with us to develop a long-term plan for a sustainable SK grant program.
We've seen the program fluctuate unpredictably over the years, contrary
to the intentof the authorizing statute, which states that ``the
Secretary shall use no less than 60 per centum of such moneys to make
direct industry assistance grants to develop the United States
fisheries and to expand domestic and foreign markets for United States
fishery products.'' Further, the authorizing statute states that ``the
Secretary shall use the balance of the moneys in the fund to finance
those activities of the National Marine Fisheries Service which are
directly related to development of the United States fisheries.''
Question 1. What is your Department's plan for ensuring a stable,
predictably-funded Saltonstall-Kennedy grant program is available to
support the promotion and development of our fisheries year after year?
Answer 1. In the fiscal year 2021 President's Budget, NOAA proposes
that all funds from the Promote & Develop Account be transferred to
Operations, Research and Facilities, with no funds remaining for the
Saltonstall-Kennedy (S-K) Program. However, Congress ultimately
determines the enacted amount for the S-K program. The funding level of
S-K is determined by the amount of funds left in the Promote and
Develop (P&D) Account after the congressionally-directed transfer of
funds from the P&D Account to the Operations, Research and Facilities
(ORF) Account. NMFS works to support projects each year that address
the needs of fishing communities, optimize economic benefits by
building and maintaining sustainable fisheries, and increase other
opportunities to keep working waterfronts viable through the S-K
Program. In fiscal year 2020, the ORF transfer will support fisheries
data collection, surveys and assessments--which includes annual stock
assessments, efforts to improve data collection, including catch
monitoring and reporting for commercial, charter, and recreational
fisheries--cooperative research, Fisheries Information Networks, and
Interjurisdictional Fisheries Grants.
Question 2. Please explain what would be required to enable NOAA to
administer the competitive Saltonstall-Kennedy grant program from the
funds it receives through the transfer to ORF.
Answer 2. Congress would need to direct NOAA to utilize these ORF
funds for the competitive S-K Program, and additional language would be
needed to authorize ORF funds for the purpose of carrying out the
competitive grant program (15 U.S.C Sec. 713c-3(c)). However, Congress
can also leave funds in the P&D account per the typical process and
those funds will be used for the S-K program.
Question 3. The authorizing statute states that 60 percent of the
balance of the Promote and Develop Account shall be used for direct
industry assistance grants to promote and develop our fisheries. After
that 60 percent is allocated, the Secretary shall use the balance of
the account for the activities of NMFS that support U.S. fisheries.
This appears to be the inverse of how this program is currently
administered. Please explain how the current implementation of the
Saltonstall-Kennedy program either does or does not comply with 15 U.S.
Code Sec. 713c--3(e).
Answer 3. NMFS has complied with the authorizing statute, which
requires after the offset to ORF, 60 percent of the balance in the
Promote and Develop Account be used for grants to develop fisheries.
The fiscal year 2020 Committee Report language further directs 95
percent of the funds remaining in the S-K program be distributed
competitively. In fiscal year 2020, NMFS intends to obligate $8.0M
through the competitive grant process, which is 100 percent of fiscal
year 2020 funds remaining in the P&D account after the ORF transfer.
_______________________________________________________________________
This Committee has acknowledged repeatedly in report language that NOAA
personnel, especially NMFS regional staff, are most effective in
meeting their mission when they are located in the communities they
serve. NMFS has five regional offices, six science centers, and more
than 20 laboratories around the United States and U.S. territories. Of
these facilities, only one has less than 90 percent of its staff in the
region it serves--and that is the Alaska Fisheries Science Center.
Discussions about staffing and positioning of personnel in Alaska
cannot happen through a ``lower 48'' lens. It is critical for NOAA and
the Department to recognize that Alaska's communities are unique in
their remoteness and rural character, with similarly unique
relationships to the Federal agencies that manage the resources that
support Alaska's economy, recreation, and subsistence.
Question 1. Will NOAA commit to ensuring that no large-scale shifts
in personnel or facilities in Alaska are implemented or proposed for
implementation prior to extensive consultation with the Alaska
Delegation and the affected communities?
Answer 1. NOAA has developed options for consolidating personnel in
GSA Region 10 which includes Alaska. These options strive to strengthen
mission alignment while also ensuring NOAA can hire the appropriate
talent to perform the agency's variety of missions now and into the
future. These options also are consistent with efforts to reduce an
existing footprint NOAA recognizes it cannot afford over the long term,
and strategically reducing the NOAA footprint will allow more resources
to be dedicated to mission critical work. Over the next 10 years, NOAA
intends to identify those options and will discuss them with the
Committee prior to execution.
Question 2. Will NOAA commit to ensuring that any reorganization of
NOAA personnel in GSA Region 10 results in a significant increase of
Alaska Fisheries Science Center staff stationed in Alaska?
Answer 2. Staffing in Alaska continues to be a high priority for
NOAA and the Alaska Fisheries Science Center (AFSC). This is reflected
in its recent staffing trends. At this time, NOAA does not foresee a
significant reorganization of AFSC or shift of its positions stationed
in Alaska. However, AFSC will continue its current practice of
strategically evaluating new and existing vacancies on a case-by-case
basis and identifying positions that should be based in Alaska,
including those that have been traditionally located in Seattle. These
decisions will be informed by whether AFSC would be able to recruit and
retain the employees with the skills and competencies necessary to
achieve its important and complex mission.
Question 3. In fiscal year 2019, how many positions traditionally
located in Seattle were advertised for hiring with an option to be
located in Alaska? How many new hires exercised this option?
Answer 3. In fiscal year 2019, the Alaska Fisheries Science Center
(AFSC) advertised 30 total positions. Of those 30, there were 11 that
were advertised for Alaska (Juneau) only, and 6 that were advertised
with an option of Alaska (Anchorage) or Washington (Seattle). Of the
latter 6, there was one that was hired in Alaska. However this was a
position that had already been traditionally located in Alaska. Thus,
there were 5 total positions traditionally located in Seattle that were
advertised with an option to be located in Alaska, and none of the new
hires exercised this option. For reference, in fiscal year 2018 the
AFSC advertised 23 total positions, 11 of which were advertised for
Alaska. In fiscal year 2020, there have been 53 total positions
advertised, 21 of which were advertised for Alaska, and 4 of which are
new positions (not backfills for already existing positions).
Question 4. Please provide an update on NWS staffing deficiencies
at Alaska Weather Service Offices in Alaska. Has the agency fulfilled
its aim to have one meteorologist technician at each office by the end
of summer 2019?
Answer 4. Each Weather Service Office (WSO) in Alaska has 1
meteorologist technician in the office with the exception of WSO
McGrath, which is currently being staffed with a Mobile Met Tech
(MOBEU) from NWS Alaska Region HQ while the agency continues to pursue
a hiring action to fill that position. A candidate was selected from an
announcement that closed on March 4, 2020; however, that person
declined the position. Alaska Region anticipates that the position at
WSO McGrath will be re-advertised this summer.
_______________________________________________________________________
I have been encouraged by the progress we've seen recently on returning
the NOAA vessel Fairweather to its rightful homeport in Ketchikan,
Alaska. Senator Sullivan and I are appreciative of the Department's
efforts as we've collaborated on this issue, which is one of great
importance to the community of Ketchikan. I understand that NOAA's
Office of Marine and Aviation Operations has committed $1 million to
fulfill ``Phase One'' of the proposal to rehabilitate the dock in
Ketchikan so that it can accommodate the Fairweather. One item I will
be advocating for in fiscal year 2021 is additional funds to support
``Phase Two'' of these dock improvements, so that the Fairweather will
have a fully functional homeport in Ketchikan in the near future.
Question 1. Will you reiterate your full support for returning the
Fairweather to its proper homeport in Alaska?
Answer 1. The Department and NOAA remain fully committed to
returning the Fairweather to its homeport of Ketchikan, Alaska.
Question 2. Will you ensure that any funding allocated by Congress
in fiscal year 2021 to support returning the Fairweather to Ketchikan
is implemented as directed, in close coordination with the State of
Alaska and the Ketchikan Gateway Borough?
Answer 2. NOAA is currently working with the State of Alaska and
the Ketchikan Gateway Borough to complete Phase 1 of the project. NOAA
will continue its collaboration with the State of Alaska and the
Ketchikan Gateway Borough on this project.
Question 3. As NOAA continues its efforts to recapitalize its fleet
of vessels, will you commit to working with the Alaska Delegation to
maximize the number of new assets that are permanently homeported in
Alaska?
Answer 3. Any decisions on future homeports will not be made for
several years. Funding for the acquisition of three Class B vessels or
two Class C vessels, as identified in The NOAA Fleet Plan: Building
NOAA's 21st Century Fleet, has not been appropriated yet. After funding
is secured, NOAA will evaluate its existing homeports for capabilities
and mission requirements, along with any facilities studies, to best
inform homeporting decisions. NOAA is committed to considering all
operational Alaskan homeports in our evaluation of future homeports.
_______________________________________________________________________
Thank you for your Department's work to approve and allocate funding
for two fishery resource disasters that occurred in Alaska in 2018: for
Pacific cod in the Gulf of Alaska, and for sockeye salmon in Chignik,
Alaska. I appreciate NOAA's efforts to ensure that these funds are made
available in as timely a manner as possible, but as we have seen, the
process to get much-needed relief to fishing communities after they've
been affected by a resource failure is convoluted and takes far too
long. I've cosponsored legislation here in the Senate that would set
clearer timelines for the disaster process, and clarify which
stakeholders are eligible to receive relief payments.
Question 1. What steps is NOAA taking to improve and streamline the
fishery disaster process so relief payments can reach communities
sooner?
Answer 1. Under its Fishery Disaster Policy, NMFS has worked to
ensure fishery disaster determinations are evaluated under the current
provisions of the Magnuson-Stevens Fishery Conservation and Management
Act and the Interjurisdictional Fisheries Acts in a consistent and
timely manner. Additionally, NMFS strives to ensure disaster assistance
is allocated in the most effective and timely manner possible. However,
NOAA sees the potential for improvements. Most importantly, the current
processes for determining whether a disaster has occurred and
subsequently providing funding to affected entities simply take too
long. It can take up to 2 years for disaster determinations to be made
and as much as an additional year until funding, if appropriated, is
disbursed to the affected fishing communities.
NMFS will be seeking input from stakeholders as well as the general
public on ways it can streamline and improve its fishery disaster
processes. For example, setting target deadlines for the review and
analysis of disaster related information would help set stakeholder
expectations as well as drive the process. Clearly articulating
specific information requirements that must be submitted before NMFS
can initiate consideration of a disaster determination request would
also ensure that NMFS has the information required to make a decision
and avoid potential lengthy delays in requesting and receiving
additional needed information. Providing additional guidance on the
potential uses for disaster funding would aid in grant applications
being approved more quickly.
Question 2. As climate change affects marine ecosystems, does NOAA
anticipate that the number of fishery disasters will increase in the
future? What steps is the agency taking to prepare for the possibility
of larger and more frequent resource failures due to ocean warming?
Answer 2. While changes in the ocean and coastal environment,
hurricanes and other storms, and unprecedented freshwater runoff events
have resulted in significant impacts to a number of our fisheries
around the country, NMFS has not conducted any studies to date
evaluating the impacts of climate on fishery disaster determinations.
Congress appropriates funds for fishery disaster assistance on a case-
by-case basis. Thus, NMFS cannot anticipate whether or not fishery
disasters will increase in the future, nor anticipate future
congressional fishery disaster appropriations. NMFS would be happy to
discuss this topic further with your staff.
Question 3. What is the Department's position on direct payments to
municipalities for lost landing tax revenue as an eligible use of
fishery disaster funds? Is this use of fisherydisaster funds currently
authorized by the existing fishery disaster process?
Answer 3. NOAA's policy is to prohibit the use of fishery disaster
assistance funding to compensate State, local, or Tribal governments
for lost municipal or government tax revenue. Therefore, this specific
use of fishery disaster funds is not allowed in the existing fishery
disaster process.
______
Questions Submitted by Senator Susan M. Collins
Gray Zone
Question 1. There is a long-running territorial dispute between the
U.S. and Canada pertaining to the waters around Machias Seal Island,
which sits approximately 10 miles off the Maine coast. Consequently,
each country manages their fisheries in the area through separate and
often contrasting regulations. Acting Administrator Jacobs committed to
working with our Canadian counterparts on a management solution for
this unique area. I am encouraged that there have been some preliminary
discussions between the parties on this matter in recent months, and as
they continue, I strongly urge you to ensure that Maine lobstermen and
fishermen who work in these waters have a seat at the table. They are
the real experts, and have relayed to me their serious concerns about
inequity in this area.
The differences between U.S. and Canadian management approaches
overall--and in the Gray Zone especially--have become even more
pronounced and problematic in light of the right whale rulemaking.
Constituents fishing in the Gray Zone have sent me photographs of
Canadian float rope in the area--gear that is dangerous to whales and
which has been prohibited in Maine waters for years.
Can you discuss the action plan that NOAA has to address the
discrepancies in the Gray Zone as it pertains to right whale
protections and the management of the various fisheries therein?
Answer 1. Staff at our Greater Atlantic Regional Office have spoken
routinely with representatives of the Maine lobster industry and
Fisheries and Oceans Canada regarding this complicated issue. We will
continue to listen to and consider U.S. lobstermen's concerns and work
with our Canadian counterparts to ensure that the Canadian lobster
industry is taking equivalent conservation actions to help protect
right whales and provide for a sustainable and lucrative lobster
fishery in the Gray Zone.
We are preparing a proposed rule and Draft Environmental Impact
Statement to analyze measures to reduce the entanglement risk to right
whales from lobster trap gear. In doing so, we have worked very closely
with the lobster industry, including representatives from the Maine
Department of Marine Resources, the Maine Lobstermen's Association, and
Maine lobstermen to take into account their perspectives on how to meet
this goal. This proposed rule considers the comments and proposals
provided by the Maine lobster industry, and we look forward to hearing
their additional comments on the various alternatives when the proposed
rule is published.
Sea Grant
Question 2. The National Sea Grant program, a highly successful
Federal-State partnership, sends 95 percent of its appropriated funds
from NOAA directly to coastal States like Maine.
I have been pleased to see that over the last two fiscal years, the
Committee has provided $2 million within the Sea Grant program
specifically for lobster research priorities in the Gulf of Maine. The
program has played an integral role in helping to preserve Maine's
iconic fisheries, like lobster, but has also helped advance developing
industries in Maine, like aquaculture. In 2019, Maine Sea Grant
received $1.6 million to collaborate with the University of Maine,
community partners, and industry to help address seafood consumption
needs in the U.S. Thousands of Mainers rely on marine industries for
their livelihoods, and aquaculture is a promising area for growth and
diversification. With these new resources, the Maine Sea Grant program
will be able to conduct additional research and analysis that supports
the sustainability of this emerging sector of the Maine economy--from
work on food safety and quality to developing new markets and providing
critical information to policymakers.
The President's budget request, for the fourth fiscal year in a
row, proposes to eliminate the National Sea Grant Program. In a strong
show of support, Congress responded by increasing the appropriation for
this program by $6 million in fiscal year 2020.
Will you commit to working with Congress to fully implement this
important program?
Answer 2. NOAA appreciates Congress' support for this program, and
will continue to implement the program at the funding level(s)
appropriated by Congress.
Economic Development Administration--Maine Specific
Question 3. I oppose the proposed elimination of the Economic
Development Administration again this year--because I have seen
firsthand how important EDA programs are to the State of Maine.
Following the decline of the pulp and paper industry in Maine, I
helped secure EDA funding to establish the Forest Opportunity Roadmap
(FOR/Maine) Initiative, an industry-led effort that is helping to
diversify the State's wood products businesses, attract investments,
and develop greater economic prosperity for rural communities impacted
by mill closures. Maine's forests are vital contributors to our State's
economy, particularly in rural communities, making EDA's work with
State stakeholders invaluable.
Additionally, in fiscal year 2020, Congress included $15 million in
EDA funding to be directed towards communities affected by nuclear
power plant closures. Wiscasset, Maine, was home to Maine Yankee, one
of several decommissioned nuclear power plants across the country. In
1996, the year Maine Yankee shut down for good, it paid the town of
Wiscasset $13 million in property taxes, accounting for over 90 percent
of the town's entire tax base. In the 20-plus years since Maine Yankee
shut down, the town of Wiscasset has been reeling from the loss of such
a large part of its tax base, and could use this EDA funding to help
sustain the local economy.
Like with other popular and effective programs such as Sea Grant, I
expect that Congress will continue to provide funding for the EDA. Will
you commit to work with Congress to ensure that the EDA can continue to
provide much-needed support and resources to rural America?
Answer 3. Yes. EDA is committed to executing the annual budget as
passed by Congress and working with Congress to ensure that the EDA can
continue to provide much-needed support and resources to rural America.
Historically, across EDA's broad range of flexible, locally-driven
programs and strategies, 60 percent of EDA's resource have gone to
funding rural projects and programs. Rural communities have been, and
will continue to be, a top priority for EDA.
Semiconductor Industry Concerns
Question 4. The semiconductor industry in Maine has raised concerns
about recent reports that the Administration is considering potential
amendments to the Export Administration Regulations (EAR) that would
change how non-sensitive, commercial items are sold to entities in
China. I am concerned that these proposed rules have not been made
available to Congress nor to the public, and that they may be changed
without input from industry experts and without an assessment of the
impact on American jobs. I remain a strong proponent of the current
export restrictions on items sold to Huawei, due to the company's links
to the Chinese Communist party, but non-sensitive, commercial items
should not be subjected to similar restrictions.
How does the department plan to address industry concerns and will
there be an opportunity for public comment on the final proposed rule?
Answer 4. We value hearing from all interested parties--whether
industry, Members of Congress, foreign governments, or others--on any
way we can make this country safer while continuing to keep American
companies competitive. When considering potential changes to these
controls, including whether the rules would be proposed for public
comment prior to becoming effective, the Bureau of Industry and
Security (BIS) considers a wide range of factors. Specifically, these
factors include: Classified information from the U.S. intelligence
community revealing national security threats that impact the content
and/or timing of the issuance of rules; BIS's knowledge about the
particular industry affected based on in-house and programmatic subject
matter experts, including an office dedicated to industry outreach, as
well as expertise available from other agencies within the Department
of Commerce and other Executive Branch agencies; discussions with
interested industry representatives (such as from BIS's technical
advisory committees) consistent with Departmental policies on ex parte
communications; and communications with impacted foreign partners. BIS
values, and will continue to seek, public input on these important
issues during the rulemaking process to best protect U.S. national
security and foreign policy interests, including the impact on industry
sectors that support our national security.
Innovative Solutions for Species Conservation
Question 5. In its budget justification for the Marine Mammals, Sea
Turtles, and Other Species funding line, NOAA highlights that its
programs within this line focus on sustaining both threatened/
endangered species and ecosystems that support them, as well as
enabling economic development in a manner that is compatible with
species conservation and recovery.
Innovative partnerships such as the ``Salmon for Maine's Rivers''
program are great examples of collaborations that leverage private
industry expertise, NGOs, and government resources to maximize
conservation benefits and achieve cost-effective restoration.
How can NOAA support these innovative programs and creative
solutions to enhance imperiled ``Species in the Spotlight''?
Answer 5. NOAA supports innovative programs and creative solutions
through many partnerships. The Species in the Spotlight initiative is
an example of how these partnerships have worked to conserve Atlantic
salmon. Since the initiative's inception in 2015, NOAA has collaborated
with many partners, including the U.S. Department of Agriculture
Natural Resource Conservation Service, Penobscot Indian Nation, Project
SHARE (Salmon Habitat And River Enhancement), Maine Department of
Inland Fisheries and Wildlife, Maine Department of Marine Resources
(DMR), Maine Department of Conservation, Maine Forest Service, Atlantic
Salmon Federation, U.S. Fish and Wildlife Service, The Nature
Conservancy, Downeast Lakes Land Trust, municipalities, lake
associations, towns, and numerous private landowners. There has been
progress on key actions to stabilize Atlantic salmon (Atlantic Salmon
Priorities Action Plan 2016-2020), including opening access to
approximately 145 miles of streams and rivers, working with Brookfield
Renewable Energy to improve the safety of salmon migrating downstream
of the dams on the Penobscot River, and evaluating the ways in which
the challenges of invasive species, changing environmental conditions,
and hydropower are interacting to reduce the freshwater survival of the
fish.
NOAA also is a partner in the Salmon for Maine's Rivers project,
together with the State, the Penobscot Indian Nation, and the
aquaculture industry. This multi-year project aims to increase the
abundance of adult wild reared sea-run salmon returning to the
Penobscot River, which would potentially move the species closer to
recovery. Adult Atlantic salmon will be reared in aquaculture net pens
off the coast of Maine, which will allow them to bypass the high
mortality ocean migration phase of their life cycle. These adults will
then be stocked into the East Branch of the Penobscot River, where they
are expected to spawn and produce wild-reared young. Specific NOAA
contributions include an Endangered Species Act section 6 grant to
directly fund the program, as well as Atlantic salmon funds transferred
annually from NOAA to support Maine DMR staff who will work directly on
all aspects of the project, from implementation to monitoring recovery
success.
______
Questions Submitted by Senator Marco Rubio
Question 1. I am deeply troubled by the use of forced labor of
Uyghurs and other Turkic Muslim minorities in the Xinjiang Uyghur
Autonomous Region by Chinese entities and their affiliates. What steps
can the Department of Commerce take to ensure that forced labor made
goods from the Xinjiang Uyghur Autonomous Region do not enter the U.S.
market and how can Congress assist the Department in this important
task?
Answer 1. The Bureau of Industry and Security (BIS) has added a
total of 48 entities to the Entity List for their involvement in the
implementation of the Chinese government's campaign of repression, mass
arbitrary detention, forced labor, and high-technology surveillance
targeted at Muslim minority groups in the Xinjiang Uyghur Autonomous
Region (XUAR). A BIS license is required for the export, reexport, or
transfer (in-country) of any item subject to the EAR to any of the 48
entities. No license exceptions are available. License applications
involving most items subject to the EAR that are destined for any of
these entities are reviewed under a presumption of denial.
BIS has an ongoing process in place to identify and review
activities of the Chinese government and commercial entities to
determine whether placement of additional entities on the Entity List
is warranted. BIS also worked with our interagency partners to urge
businesses with potential exposure in their supply chain in Xinjiang,
or to facilities outside Xinjiang that use labor or goods from
Xinjiang, to be aware of the reputational, economic, and legal risks of
involvement with entities that engage in human rights abuses.
On July 1, 2020, the Departments of Commerce, State, Homeland
Security, and the Treasury issued the Xinjiang Supply Chain Business
Advisory that encouraged businesses to apply industry human rights due
diligence policies and procedures to mitigate reputational, economic,
legal, and other risks with regard to entities engaged in human rights
abuse in XUAR.
Question 2. In addition to trafficking forced labor goods into
American supply chains, the Chinese government has figured out how to
position its champions into our capital markets. Soon, due to a
decision by the Federal Retirement Thrift Investment Board (FRTIB),
Federal employees and members of the uniformed services will be
directly investing in Chinese national champion companies listed on
securities exchanges in mainland China. How does the Department view
this action, which will funnel millions of dollars into companies that
have been the direct recipients of Chinese industrial support?
Answer 2. The Federal Retirement Thrift Investment Board is an
independent Federal agency and the Department of Commerce does not play
a role in how the Board administers the Thrift Savings Plan (TSP), a
Federal employee retirement fund. However, there are many concerns
about actions of the Chinese government that have the potential to
impede our trade and threaten our national security. U.S. capital
markets are the largest and most liquid in the world and serve as a
major source of U.S. competitiveness and economic security, and China
is using U.S. capital strategically to foster its own economic
dominance and the implementation of foreign policies that may run
counter to U.S. national security interests. China's increased access
to U.S. and other global capital markets fuels the expansion of an
economic ecosystem that competes directly against American firms and,
ultimately, may threaten U.S. national security interests. Furthermore,
on May 11, 2020 National Security Adviser Robert O'Brien and National
Economic Council Chair Larry Kudlow sent a letter to U.S. Labor
Secretary Eugene Scalia stating that the White House no longer supports
TSP intentions to continue investment in Chinese equities in the Morgan
Stanley (MSCI-ACWI) index as part of its International (I) Fund.
Several Chinese companies in the index arm the Chinese military,
provide technology that suppress religious minorities, and violate U.S.
sanctions on Iran and North Korea. Current assets in the TSP I Fund
total about $40 billion. Subsequently, Secretary Scalia has written to
Michael Kennedy, the Chairman of the Federal Retirement Thrift
Investment Board, underscoring the administration's concerns and
seeking removal of TSP I Fund investments from the MSCI-ACWI index by
May 13, 2020.
Question 3. Commercial space is an important industry in my home
State of Florida and continues to develop at a healthy pace. It is
important for the Office of Space Commerce to play a role in managing
congestion, avoiding collisions, and reducing harmful occurrences in
space. However, overly restrictive and heavy-handed regulation may have
the unintended consequence of pushing companies into the arms of
foreign competitors, notably China, who seek to displace our Nation as
a leader in this sector. How is the OSC balancing the need for
standards for safety with the goal of keeping our companies and
innovators working and operating in the United States?
Answer 3. The Department is keenly aware of the Chinese threat to
U.S. leadership and competitiveness in global space markets. This
threat is assessed by several bureaus in the Department including the
Bureau of Industry and Security, International Trade Administration,
and Office of Space Commerce (OSC). Based on OSC's continuing dialogue
with a wide range of space companies, large and small, we are aware of
Chinese anti-competitive behaviors like artificial pricing, economic
espionage, and the practices currently identified with the Chinese Belt
and Road Initiative. On behalf of the Department, OSC has the lead on a
National Space Council task to the Secretary designed to promote the
United States as ``flag of choice'' for space commerce. Continuing
regulatory reform, expanded advocacy, intellectual property protection,
and increasing space partnerships with our allies are among the tools
to do that. We are also working to leverage a wider range of economic
tools in the U.S. Government's toolkit, such as the Export--Import
bank, Development and Finance Corporation, and the U.S. Trade and
Development Agency. These tools can uniquely counter China's unfair
practices in addition to more traditional defense and national security
activities.
Space Policy Directive-2 focuses on streamlining regulations, which
remains a core mission for OSC. OSC has continued to strongly advocate
for industry while participating in ongoing commercial remote sensing
and export control regulatory reform activities and space spectrum-
related issues in partnership with NTIA. Burdensome regulations have
the potential to harm industry in such a fast-moving and technical area
like space commerce, and OSC strives to encourage and create light-
touch, performance-based regulations that adjust to changing market
conditions. For example, the new commercial remote sensing rule
balances safety and security with innovation. It increases transparency
to licensees, prohibits retroactive conditions, and forces the U.S.
Government to assess market availability before imposing conditions on
licensees.
Question 4. It is encouraging to hear your emphasis on ensuring
that the Census is performed in a complete and precise manner. As the
Senator for Florida and a Member of the Special Committee on Aging, I
am particularly concerned about scammers posing as Census workers to
obtain sensitive information, such as credit card and social security
numbers, from elderly victims. How can Congress best assist the
Department and the Census Bureau to help educate the public and combat
these bad actors?
Answer 4. I share your concern. Knowing that potential bad actors
exist, the Census Bureau has devoted a significant portion of the 2020
census website to advising the public on how to avoid frauds and scams
\1\ in preparation for our decennial count. The site addresses the
topics of avoiding scams online, the legitimate communications the
Census Bureau sends to respondents, how to verify the identity of
someone who comes to your home purporting to collect a response to the
census, and reporting suspected fraud.
---------------------------------------------------------------------------
\1\ See https://2020census.gov/en/avoiding-fraud.html
---------------------------------------------------------------------------
You can help by making your constituents aware that during the 2020
Census, the Census Bureau will never ask for information such as your
Social Security number, bank account or credit card numbers, anything
on behalf of a political party, or money or donations. Furthermore,
they should know that all valid Census Bureau websites will always have
``.gov'' at the end and that the Census Bureau will not send
unsolicited emails or text messages to request their participation in
the 2020 Census. If they are not sure if the communication they
received is legitimate, or they suspect any other kind of fraud, they
may also call us at 844-330-2020 to speak with one of our
representatives.
In an effort to combat the spread of misinformation (incorrect
information spread unintentionally) and disinformation (incorrect
information spread intentionally) about the 2020 Census, the Census
Bureau last year established a Trust & Safety Team. The team is
committed to ensuring that the information your constituents receive
about the census is factual and accurate. To this end, it monitors all
available channels and open platforms for misinformation and
disinformation about the census, allowing the Census Bureau to respond
quickly to fight potential threats to achieving an accurate count in
traditional media, social media, and other stakeholder communications.
Along similar lines, the Census Bureau also launched a dedicated page
on its website, Fighting 2020 Census Rumors,\2\ and encouraged partners
and stakeholders to report anything that looks suspicious to an email
account set up for this purpose (< [email protected] >).
---------------------------------------------------------------------------
\2\ See https://2020census.gov/en/news-events/rumors.html
Question 5. 5G has been referred to as the ``industrial Internet''
due to the promise it holds to boost productive capacity and ensure
economic security. I applaud the work of the Trump administration and
Department of Commerce in defending America's telecommunications
networks against malign actors like Huawei, who seek to undermine our
national security and economic prosperity. What further steps will the
Department of Commerce and National Telecommunications and Information
Administration take to ensure that 5G is developed and rolled out
---------------------------------------------------------------------------
domestically in a cost-effective and expedient manner?
Answer 5. The Department of Commerce is deeply engaged in ensuring
that 5G is developed and rolled out efficiently, effectively, and
securely. Many Department of Commerce bureaus are undertaking important
efforts to achieve this goal. Specifically,
--The Bureau of Industry and Security's (BIS) control of dual-use
technology covers the development and deployment of 5G
technologies. BIS is managing the Entity List and is supporting
the implementation of the Executive Order on Securing the
Information and Communications Technology and Service Supply
Chain.
--The International Trade Administration (ITA) is developing
strategic trade policy measures specific to promoting and
supporting the competitiveness of U.S. technology companies in
the 5G market including
--Working to ensure that the global market is open to industry-
driven, market-based technology standards that are the
foundation for technology being developed in the United States.
--Promoting foreign direct investment in the United States by trusted
companies that will establish a secure supply chain for 5G
networks and enabling technologies.
--Providing economic and industry analysis to support CFIUS review of
foreign investment in U.S.-based companies, assets, and
properties.
The National Institute of Standards and Technology has
approximately $75 million invested in advanced communications (5G and
beyond) through which it is:
--Coordinating the U.S. Government and participates through its own
experts in the development of standards for advanced
communications technologies including at the 3rd Generational
Partnership Project (3GPP), Institute of Electrical and
Electronics Engineers (IEEE), International Organization for
Standardization/International Electrotechnical Commission (ISO/
IEC), and International Telecommunication Union (ITU) and other
standards development organizations, including contributing to
specifications for the security of 5G networks in 3GPP SA3.
--Establishing and participating in the a public-private partnership
called the 5G mmWave Channel Model Alliance to accelerate the
development and use of accurate measurement. The Alliance
consists of over 180 participants representing over 80
companies and organizations worldwide, including AT&T, Intel,
Facebook, Qualcomm, Ball Aerospace and Echostar. The Alliance
develops best practices for acquiring and verifying channel
propagation data and its outputs have also led to new standards
development activities in bodies such as 3GPP and IEEE. These
propagation models are being used by U.S. manufacturers for
future 5G and 6G applications. NIST's collaborations with CTIA
are facilitating the development of standardized certification
tests for cellular-enabled Internet of Things (IOT) devices.
This work resulted in the 2019 publication of the CTIA Test
Plan for Wireless Large-Form-Factor Device Over-the-Air
Performance.
--Supporting the Department of State in joint U.S. Government-private
sector workshops with trading partners to promote industry-
driven standards for 5G infrastructure, enabling technologies,
and vertical applications in the 5G ecosystem.
--Overseeing the National Advanced Spectrum and Communications Test
Network, jointly created by NIST, NTIA, DoD, as a neutral test
bed to address spectrum-sharing challenges.
The USPTO has met with stakeholders to receive feedback on
obtaining patent protection for the technologies underlying 5G
standards and is incentivizing innovation of 5G technologies by
examining applications, issuing patents, and registering trademarks.
The National Telecommunications and Information Administration's
(NTIA) is increasingly focused on ensuring that 5G is developed and
rolled out domestically efficiently, effectively, and securely. Its
efforts include:
--Ensuring the availability of wireless spectrum by identifying and,
where feasible, expeditiously repurposing ``mid-band'' spectrum
suitable for 5G; working with the Federal Communications
Commission (FCC) and within the Executive Branch to identify
potential spectrum for repurposing, consistent with NTIA's
statutory mission to manage the spectrum resources available
for U.S. Government use; continuing to evaluate Federal use of
the 3100-3550 MHz band, having previously released a technical
study that found shared access to the 3450-3550 MHz segment of
this band for 5G was likely feasible subject to further
efforts; providing a report to Congress on these efforts,
pursuant to the Making Opportunities for Broadband Investment
and Limiting Excessive and Needless Obstacles to Wireless
(MOBILE NOW) Act; working to meet the directive in Section
603(a) of the Act, which requires NTIA and the FCC to identify
255 megahertz of spectrum below 8 GHz for mobile and fixed
broadband use; fulfilling the requirement of the Spectrum
Pipeline Act of 2015 to identify 30 megahertz of spectrum below
3 GHz for re-assignment to non-Federal and/or shared usage;
helping to ensure the success of the initial commercial
deployment phase of the 3550-3700 MHz Citizens Broadband Radio
Service (CBRS), with a related FCC spectrum auction scheduled
to commence in July 2020.
--Participating in 5G standards development, having previously led
FirstNet's standards efforts and now representing the
Department of Transportation's interests in LTE and 5G
vehicular communications, and more recently representing the
Department of Defense's Research and Engineering equites in 5G.
Additionally, NTIA participates in the 3rd Generational
Partnership Project (3GPP), the primary standards development
organization for 5G, in its own right to maintain deep subject
matter expertise in LTE and 5G, including relationships with
key participants through 3GPP. NTIA has staff participating
across 3GPP, including in the Radio Access Network (RAN), Core
and Network Terminals, and Service and System Aspects (SA)
Plenaries, the SA1 Working Group responsible for Service
Definition standards, the SA2 Working Group responsible for
System Architecture, the SA3 Working Group responsible for
security, and the RAN1 Working Group responsible for the 5G New
Radio standards.
--Coordinating, at the request of the National Security Council's
Sub-Policy Coordination Committee on Standards, cross
Department/Agency participation in 3GPP to help maximize
collaboration opportunities for U.S. Government participation
in 5G standards development.
--Leading the executive branch efforts on developing polices
addressing 5G and participating in international
telecommunications bodies such as the International
Telecommunication Union (ITU) and other intergovernmental
bodies ensuring outcomes are consistent with U.S. policy
positions. Through its leadership at the ITU, NTIA is
successfully countering questionable proposals such as Huawei's
``New IP'' alternative to current Internet protocols which most
of the world's networks are built. The Huawei initiative--
because of the potential for adoption among developing
countries--threatens to replace current IP infrastructure with
equipment that is fundamentally not interoperable/compatible
with existing IP based networks.
--Serving, at the request of the DoD, as a co-chair of the Alliance
for Telecommunications Industry Solutions (ATIS) 5G Supply
Chain Working Group, which seeks to extend the development of
5G best practices and guidelines for the purpose of creating
supply chain standards that can be operationalized in the
public and private sectors; serving as a founding partner of
the oneM2M global initiative, a member of the ITU, as well as a
member of the Inter-American Telecommunication Commission
(CITEL); working to develop a common assurance framework for
trusted 5G networks; developing or identifying standards to be
applied to 5G systems; evaluating audit and certification
options for Information and Communications Technology (ICT)
solution providers, infrastructure, and endpoint device
original equipment manufacturers.
--Helping to manage risk to 5G supply chains by assisting in the
implementation of the Executive Order on Securing the
Information and Communications Technology and Services Supply
Chain; establishing a program to share supply chain security
risk information with industry as required by the Secure and
Trusted Communications Networks Act; helping to develop a set
of characteristics of ``trusted'' suppliers; engaging with
industry to obtain feedback on how to implement the National
Strategy to Secure 5G as required by the Secure 5G and Beyond
Act; serving in its role on ``Team Telecom'' as provided for in
the Executive Order on Establishing the Committee for the
Assessment of Foreign Participation in the U.S.
Telecommunications Services Sector; representing the Executive
Branch before the FCC.
______
Questions Submitted by Senator Dianne Feinstein
Ocean Acidification and Warming
Question 1. The National Oceanic and Atmospheric Administration
(NOAA) recently released two studies highlighting the detrimental
impacts of ocean acidification on the West Coast. NOAA scientists
confirmed in a December 2019 study on acidification variability in the
California ecosystem that California's waters are rising in acidity at
twice the global average, threatening marine life and adding to a
growing number of costly fishery disasters.
A second NOAA study, published in January 2020 on Dungeness crab
larvae in the Pacific Northwest, documented for the first time (outside
of lab conditions) that ocean acidification can damage the shells and
sensory organ of Dungeness crab, threatening the long term growth of
the one of the most valuable fisheries in U.S. coastal waters.
What efforts is the Department taking to combat ocean
acidification? What programs and plans does the Department have in
place as our oceans continue to acidify?
Answer 1. NOAA works to determine the vulnerability of the Nation's
blue economy to continued ocean acidification (OA) by (1) monitoring
long term changes in ocean chemistry and (2) researching the impacts to
marine species and ecosystems on which human communities depend. NOAA
uses a suite of ship observations and advanced technologies to track,
monitor, and inform modeling of predicted future changes in OA. NOAA
also funds research to understand the processes controlling
acidification events like those detailed in the studies to which you
refer in your question. Monitoring informs experimental studies
exploring how NOAA's managed species may respond to OA, which species
are most sensitive, and which may prove resilient to such changes. NOAA
provides seasonal forecasts of OA conditions in the Pacific Northwest
to alert shellfish industries of potential corrosive conditions and is
currently working on developing new tools to forecast at-risk habitats
from acidification events. The ability to predict OA events will enable
us to better prepare society and impacted industries. We develop
educational materials to teach the public about ocean acidification and
its causes, giving them the tools to understand the problem and to take
action. NOAA is also exploring a competitive research funding
opportunity to study the feasibility of carbon removal strategies,
which will need to be part of any strategy to combat ocean
acidification at a local or regional scale.
Chumash Heritage National Marine Sanctuary Designation
Question 2. One way that we can combat ocean acidification is to
invest in protecting and repopulating kelp forests, which can absorb
carbon at twice the rate of land-based forests. On December 23, 2019, I
wrote you a letter in support of designating the proposed ``Chumash
Heritage National Marine Sanctuary'', which would protect sacred sites
of the Chumash people, major animal migratory routes, and kelp habitat.
As I stated in my letter, I understand NOAA approved this sanctuary
proposal in 2015, but the agency has yet to move forward with the
designation process. NOAA's Office of National Marine Sanctuaries'
March 2019 coordination report stated ``there is not active evaluation
within NOAA at this time to consider moving this site forward for
designation'', despite the report identifying that the proposed area
``contains an internationally significant ecological transition zone,
supporting high biological diversity and densities of numerous
important species.''
Question 2a. Please provide a response why the Office of National
Marine Sanctuaries is not actively evaluating this important proposal.
Answer 2a.. At this time, NOAA is actively supporting two sanctuary
designations, two sanctuary expansion processes, and other management
plan reviews at existing sanctuaries. Once the current designations
have concluded, the agency will continue to evaluate sites in the
inventory to determine whether they should advance to the designation
process.
Question 2b. What is the process and timeline for a proposal to
move forward in the designation process once it has been placed on the
inventory of successful nominations? What qualifications or benchmarks
are considered? Do these proposals expire and if so, what is the
timeframe and process for extension?
Answer 2b.. Nominations in the inventory are not guaranteed to
advance to the designation process; therefore, there is no specific
timeline for advancing a nomination to the designation process. NOAA
periodically assesses its available program capacity for new
designations against the inventory of successful nominations. When such
capacity is available, NOAA weighs several factors in deciding whether
to begin designation on a nomination in the inventory. These factors
include the available capacity to support a designation process for the
site, the urgency for the sanctuary management of the site, the
availability of partnerships to aid with management if needed, and
support for the designation from elected leaders at the Federal, State,
local and Tribal levels, as well as among stakeholders and the general
public.
In accordance with the 2014 rule that established the Sanctuary
Nomination Process, a nomination expires 5 years after NOAA accepts it
into the inventory. NOAA issued a notice on November 13, 2019 to
clarify that as nominations approach this expiration date, NOAA will
review new or existing information to determine whether the nomination
continues to meet the 11 criteria on national significance and
management considerations. Prior to the expiration of a nomination, the
Director of NOAA's Office of National Marine Sanctuaries (ONMS) will
review the information and make a determination of whether the site
will remain on the inventory for another 5 years.
For the Chumash Heritage National Marine Sanctuary nomination, NOAA
has sent a letter to the original nominating party to ask for updates
of the nominated area's relevance and responsiveness to the nomination
criteria. NOAA also published a notice in the Federal Register on May
4, 2020, to solicit public input on whether the nomination continues to
meet these criteria. NOAA also hosted a virtual public meeting on May
27, 2020, to provide information on the process and to accept
additional public input. The ONMS Director will decide whether the
Chumash Heritage nomination should remain on the inventory no later
than October 5, 2020.
Deep Set Buoy Gear Authorization
Question 3. It is crucial we prioritize and accelerate sustainable
fishing gear testing and authorization to protect our marine
environments. Deep-Set Buoy Gear was approved by the Pacific Fishery
Management Council in September 2019, and provides a sustainable
alternative to Drift Gillnets. I understand that the National Marine
Fisheries Service is now going through the authorization process for
Deep-Set Buoy Gear.
Question 3a. What is the current timeline for the authorization of
Deep-Set Buoy Gear and what are the steps that need to be taken to
authorize new gear?
Answer 3a.. The Pacific Fishery Management Council adopted a final
preferred alternative to authorize Deep-Set Buoy Gear (DSBG) as well as
language for a Fishery Plan amendment. NMFS anticipates completing
Federal review and rulemakings and implementing the proposed action in
fiscal year 2022. Key next steps include preparing a draft
environmental impact statement (DEIS) pursuant to the National
Environmental Policy Act and the Endangered Species Act Section 7
consultation. Additionally, NMFS must complete other analyses required
for Federal actions, including those required pursuant to the
Regulatory Flexibility Act, the Magnuson-Stevens Act, and Executive
Order 12866.
NMFS prepared a preliminary DEIS and communicated plans for
continued Council involvement in the pending Federal review process.
Specifically, NMFS will continue to work with the Council to implement
its recommended ``phased-in'' limited-entry program to authorize DSBG
with permits issued in batches on an annual basis according to tiered
qualification criteria. Based on the preliminary DEIS prepared for the
Council, NMFS projected a 12-year ``ramp-up period'' for the authorized
fishery to reach the full-scale potential described under the Council-
selected alternative.
Question 3b. How can this process be streamlined and/or
accelerated?
Answer 3b.. Recognizing that there is Council and congressional
interest in an expedited Federal review process, NMFS has already set
an aggressive timeline to complete the necessary rulemakings and begin
issuing permits for a federally-authorized Deep-Set Buoy Gear (DSBG)
fishery. To minimize the potential for delays, it is imperative that
the State of California provide efficient and open data-sharing
regarding all records of participation in swordfish fisheries in waters
off its coast.
______
Questions Submitted by Senator Jack Reed
Question 1. As we discussed during the hearing, I remain very
concerned with the status of the Census Bureau's targeted outreach
campaign for Providence County, the only location of the End-to-End
Census Test. As such, please provide an update on the Census Bureau's
actions and plans to implement the targeted outreach campaign,
including an answer to the following specific questions.
Question 1a. How much money has the Census Bureau allocated to the
targeted outreach campaign as of March 12?
Answer 1a. In addition to the robust campaign running nationwide,
the Census Bureau devoted approximately $102,000 on additional targeted
advertising specifically focused on the transition of Providence County
from its role in the 2018 End-to-End Census Test to working for and
participating in the 2020 Census.
Question 1b. How much money does the Census Bureau intend to
allocate to the targeted outreach campaign in total?
Answer 1b. See Answer 1a above.
Question 1c. Please list every newspaper, radio station, television
station, and digital platform that the Census Bureau has or will run
advertisements on as part of the targeted outreach campaign.
Answer 1c. Print ads for the additional targeted advertising in
Providence County ran in various statewide and local newspapers and
journals, including the Providence Journal and the Valley Breeze. Other
print ads ran in the Cranston Herald, Johnston Sun Rise, Warwick
Beacon, Barrington Times, Bristol Phoenix, East Providence Post,
Sakonnet Times, Times-Gazette of Warren, Portsmouth Times, The Chariho
Times, The Coventry Courier, The East Greenwich Pendulum, The
Narragansett Times of Narragansett, The Standard Times of North
Kingston, The Independent, The Express of Westerly, Brown Daily Herald
and Five Cent Cigar at URI, Providence en Espanol (in Spanish), and
Nuevos Horizontes (in Spanish). Those advertisements in the additional
targeted campaign began in late February 2020 and continued into late
March 2020.
Digital ads for the additional targeted advertising ran on various
web and social media platforms, including the Providence American,
Facebook and Instagram (English and Spanish), and Google Search. Those
ads started on February 19, 2020 and continued until March 24, 2020.
They delivered approximately 3.5 million digital impressions in
Providence County.
We purchased radio ads for the additional targeted advertising on
the top five stations in Providence County: WCTK, WHJY, WPRO, WWBB, and
WWLI. Ads ran in Portuguese on WJFD. These began on March 2, 2020, and
continued until March 29, 2020. Ads for the additional advertising in
Spanish ran in June 2020 on WPMZ and Latino Public Radio.
Question 1d. Similarly, please list what languages--other than
English--the outreach campaign will be implemented in and on which
platform and which days those advertisements have appeared or will
appear.
Answer 1d. Advertising ran in English, Spanish, and Portuguese. See
Answer 1c. above for more details.
______
Questions Submitted by Senator Joe Manchin, III
Aluminum & Transshipment
Question 1a. In my State of West Virginia, steel and aluminum
producers are still struggling to compete with foreign traders who
circumvent our trade laws and evade duty payments by changing HTS codes
and transship products through third party countries. That's why I
applaud the department's targeted enforcement activities that have
resulted in successful antidumping, countervailing and modification of
duty cases. I believe that the Steel Import Monitoring and Analysis
(SIMA) System plays an important part in detecting evasion by providing
real data on steel mill imports in to the United States. That's why I,
along with my constituent, Constellium, a global aluminum manufacturer
which employs over 1000 West Virginians, praise the Department's
commitment to develop a system to track imports of aluminum products in
the same way. While it's important to have these systems in place, my
constituents continue to ask if these mechanisms are successfully
identifying foreign traders that are attempting to evade tariffs. What
has trade data revealed about the transshipment of steel into the
country?
Answer 1a. Collecting timely and detailed trade data is an
effective tool in tracking flows of steel products from their initial
country of manufacture, through third countries, and subsequently
imported into the United States. These data provide a fulsome
understanding of global steel trade patterns at detailed product
levels. While global trading patterns alone do not conclusively
identify whether transshipment or circumvention is taking place, they
can provide valuable pointers to potential sources of transshipment and
circumvention. Using such leads, and combining them with additional
market and industry research, we have successfully identified instances
in which U.S. antidumping and countervailing duty orders are being
circumvented, allowing us to take remedial action. For example, on July
7, the Department of Commerce ruled that certain corrosion-resistant
steel products (CORE) imported from Costa Rica and the United Arab
Emirates (UAE) and produced using Chinese hot-rolled steel and/or cold-
rolled steel substrate from China were circumventing the antidumping
duty (AD) and countervailing duty (CVD) orders on CORE from China. The
Department self-initiated these anticircumvention inquiries based on
steel trading patterns and other data collected and analyzed by
Enforcement & Compliance personnel.
The Department of Commerce is taking steps to enhance the steel
import monitor so that the U.S. Government and the public can more
readily identify transshipment and circumvention. Specifically, in
March 2020, Commerce published a proposed rule that would enable
Commerce to track where imported steel is melted and poured; expand
monitoring to include all steel products subject to Section 232
tariffs; update the rules on low-value licenses; and extend the steel
import monitoring program indefinitely. Public comments on the proposed
rule were generally supportive, and we are in the process of generating
responses. We anticipate that the new aluminum import monitor will
yield similar results.
Question 1b. How has the administration addressed the transshipment
of steel and aluminum in to the United States?
Answer 1b. The Department of Commerce is proposing modifications to
the steel import monitor that will enable both the U.S. Government and
the public to more readily identify transshipment and circumvention by
requiring information on its licenses identifying the country where the
steel was originally melted and poured. The Department has also, for
the first time ever, self-initiated circumvention cases based on its
own monitoring of trade patterns, to uncover possible circumvention
involving steel products.
Question 1c. Does the Department have adequate resources to
successfully curb or stop tariff evasion on steel and aluminum
products?
Answer 1c. The Department of Commerce is successfully curbing
circumvention with the resources we currently have, and we are
coordinating with Customs and Border Protection to address possible
instances of customs fraud and duty evasion.
Economic Development Administration (EDA)
Question 2a. I want to say first off that I oppose the President's
proposal to once again eliminate the EDA in this year's budget. This
agency has bipartisan support in the Senate as a result of its clear
success in addressing the economic and infrastructure needs of
communities across the country. EDA has a unique ability to partner
with communities impacted by America's changing economy while
increasing their ability to compete for new jobs and outside
investment. And no State has benefited from working with EDA more than
West Virginia, particularly through EDA's Assistance to Coal
Communities program. Since 2015, the EDA has invested nearly $40
million in West Virginia, impacting nearly every county in my State.
That represents the most EDA funding per capita of any State in the
country. It's clear that there is strong congressional support for the
Economic Development Administration. Rather than seek to eliminate the
agency altogether, what are ways that the Department can work with
Congress to make EDA work for everyone?
Answer 2a. The proposed elimination of EDA is part of a broader
effort to eliminate duplicative and unauthorized economic development
programs across the Federal Government. As part of the elimination of
EDA, the President's budget request for fiscal year 2021 includes the
transfer of EDA's monitoring and servicing of open grants to a
successor operating unit within DOC. The administration's government-
wide reform and reorganization plan proposed the consolidation of
Federal economic assistance resources into a Bureau of Economic Growth
at the Department of Commerce.\1\ This proposal would consolidate
existing economic development programs to provide a central place for
grants and technical assistance to communities and entrepreneurs
focused on job creation, business growth, and strengthening local
economies. The new Bureau presents a way the Department can continue to
work with Congress to drive economic growth and produce a higher return
on taxpayer investments on projects that are transparent and
accountable.
---------------------------------------------------------------------------
\1\ Delivering Government Solutions in the 21st Century: Reform
Plan and Reorganization Recommendations, (June 2018).
Question 2b. I understand that EDA has recently redesigned the
Regional innovation Strategies program, renaming it the ``Build to
Scale'' program. How will this change benefit rural areas and small
---------------------------------------------------------------------------
communities like those in West Virginia?
Answer 2b. The Regional Innovation Program (RIP) governs a variety
of grant programs that support the growth of regional innovation
initiatives, with the most well-known program being Build to Scale,
formerly known as Regional Innovation Strategies. With the $33 million
in fiscal year 2020 funding to RIP legislation, EDA expanded on the
program's prior successful components, and redesigned others to ensure
more participation from more communities--including those traditionally
underserved or less resourced, such as rural communities. Two key
components of that redesign, driven by customer input and a third-party
program evaluation, were the updated brand of Build to Scale and an
easier, two-phased application process. The new brand, Build to Scale,
is more meaningful to a broader range of communities that are working
to build regional economies through scalable startups, and the two-
phased application process decreases the time and resources communities
need to apply. It better communicates the program's goals. The
redesigned application process makes it easier for rural communities,
and other communities stretched for resources and partners, to apply
for funding. Concept Proposals were due March 24, 2020 and Full
Applications were due June 14, 2020.
Huawei
Question 3a. In May of 2019, the Trump administration placed Huawei
on a list of firms deemed a risk to national security and prohibited
the company from buying American parts and technologies. The Department
then moved to change this rule and require export licenses on any
electronic transfer to Huawei that contains more than 10 percent
American made content. In January, the Departments of Defense and
Treasury objected to the rule change because it would their key source
of revenues. The Department of Commerce has pulled back on the rule and
has no timeline for reintroduction. Why can't the various government
agencies come to an agreement on appropriate actions for Huawei?
Answer 3a. When considering potential changes to any controls, the
Bureau of Industry and Security (BIS) and other relevant agencies
consider a wide range of factors. The agencies continue to carefully
review possible revisions to controls related to Huawei.
A key objective of rulemaking pursuant to the Export Control Reform
Act is to ensure that all agencies with export control equities reach
consensus on amendments to the Export Administration Regulations (EAR),
including analyzing both their national security and economic impact to
minimize unintended consequences and maximize U.S. national security
and foreign policy interests. On May 19, 2020, the Department published
a rule imposing controls on certain foreign-produced items destined for
Huawei.
Question 3b. Why has the Department of Commerce chosen not to move
forward with the proposed rule change?
Answer 3b. The administration is constantly evaluating the impact
of restrictions on exports to Huawei and determining whether additional
export control requirements are necessary. In concert with our
interagency partners, should we identify that additional regulatory
actions are warranted--which will be both targeted and effective in
further preventing Huawei from acting contrary to U.S. national
security or foreign policy interests--the Department will publish
amendments to the EAR.
On August 17, 2020, BIS further restricted access by Huawei
Technologies and its non-U.S. affiliates on the Entity List to items
produced domestically and abroad from U.S. technology and software. In
addition, BIS added another 38 Huawei affiliates to the Entity List,
which imposes a license requirement for all items subject to the Export
Administration Regulations (EAR). BIS also imposed license requirements
on any transaction involving items subject to Commerce export control
jurisdiction where a party on the Entity List is involved, such as when
Huawei (or other Entity List entities) acts as a purchaser,
intermediate, or end user. These actions, effective immediately,
prevent Huawei's attempts to continue to obtain electronic components
developed or produced using U.S. technology. This revision followed a
May 2020 amendment that targeted Huawei's semiconductor design and
production work.
The August 17 amendment further restricts Huawei from obtaining
foreign made chips developed or produced from U.S. software or
technology to the same degree as comparable U.S. chips.
Additionally, the Temporary General License (TGL) has now expired.
This rule further protects U.S. national security and foreign policy
interests by making a limited permanent authorization for the Huawei
entities on the Entity List. This limited authorization is for the sole
purpose of providing ongoing security research critical to maintaining
the integrity and reliability of existing and currently ``fully
operational networks'' and equipment.
In a concurrent rule, BIS revised the Entity List to require a
license when a party on the Entity List acts as a purchaser,
intermediate consignee, ultimate consignee, or end user to an EAR
transaction. This aligns with the additional restrictions imposed in
the revisions to the foreign-produced direct product (FDP) rule, when
any of the Huawei entities on the Entity List are a party to the
transaction, such as by acting as purchaser, intermediate consignee,
ultimate consignee, or end user.
Broadband Mapping
Question 4. Rural States like West Virginia rely on Federal funding
for much needed investments in broadband and in order to ensure that
the funding is targeted to the right places that need it the most, we
need to have more reliable coverage maps and data that accurately
depict what people on the ground are actually experiencing. As the only
Member of Congress to formally challenge a Federal broadband coverage
map through the FCC's Mobility Fund Challenge Process, I know first-
hand just how woefully inaccurate these maps are. I appreciate your
agency's work and interest in fixing these maps and look forward to
working with you and your staff on this critical issue. I am also proud
that your agency chose West Virginia as one of eight States to
participate in your agency's mapping initiative. I understand that NTIA
is supposed to be coordinating with the FCC on this initiative. What
has that looked like and would you characterize it as a good working
relationship?
Answer 4. NTIA has founded its National Broadband Availability Map
(NBAM) on strong working relationships with participating States. NTIA
strives to continue to add more granular data to the platform to ensure
it is most responsive to the needs of Federal and State policymakers.
NTIA's collaboration with West Virginia, a partner and valued
participant in the State Broadband Leaders Network (SBLN), provided
user experience feedback that led to improvements in the development of
the NBAM, and NTIA appreciates the State's contribution to the Phase 1
pilot.
Congress instructed NTIA to coordinate NBAM development with the
FCC. During NTIA's initial planning phase, NTIA worked with the FCC to
incorporate FCC Form 477 data into one of the layers of the map. Going
forward, NTIA will seek to ensure it receives timely notice that the
FCC intends to publish updated Form 477 data. In addition, as the FCC
implements changes to the Form 477 collection methodology, NTIA will
work with the FCC to obtain advance notice and copies of test data in
order to adapt the NBAM data integration process to account for Form
477 changes.
Finally, NTIA also is seeking to coordinate closely with the FCC on
the use of FCC held non-public data such as subscription information in
order to build a more comprehensive view on the NBAM of the state of
America's broadband availability and adoption. The NBAM already
includes non-public data from other sources, and NTIA has developed a
rigorous data protection methodology to protect visibility into that
data.
Crowdsourced Data
Question 5a. The parent whose child cannot complete their homework
at night because they do not have the ability to connect to the
Internet can certainly tell you they don't have coverage. So can the
doctor struggling to access electronic medical records at a rural
hospital. That is why I led a bipartisan letter to the FCC in February
asking them to consider the use of crowdsourced data to complement and
validate their provider given Form 477 coverage data. My fellow
Senators and I also passed the BROADBAND Data Act, which was just
approved in the House this week. Do you believe crowd-sourced data is a
viable tool to help improve broadband availability data?
Answer 5a. NTIA believes that crowd-sourced information can play an
important role in validating broadband availability. Based on the input
and participation of its State partners, NTIA already has integrated
several types of crowd-sourced data into the NBAM. The data are the
result of various surveys and consumer-initiated speed tests managed by
the States as part of their independent broadband planning, funding,
and mapping programs. NTIA believes that speed tests and surveys have
potential as a comparative data source and play an important role in
obtaining a more accurate understanding of broadband availability.
Question 5b. How do you suggest we fix these maps and how can
Congress assist in this effort?
Answer 5b. Feedback from NTIA's May 2018 Request for Comment (RFC)
on actions that can be taken to improve the quality and accuracy of
broadband availability data, particularly in rural areas, highlighted
the need to acquire sub-Census block level data and the importance of
crowd-sourced data. By collecting information that is more location-
specific, NTIA can develop address-level, land parcel, or road-segment
models of broadband availability that align better with the locations
of end users than broad interpretations of Census-blocks, particularly
in rural areas. When considering using crowdsourcing applications at
the national level, setting common standards and applicable guidance
for requisite data fields, collection programs, analysis, and the
method and timing of surveys would improve the utility of crowd-sourced
data.
Congress could provide additional support to these efforts by
promoting a consistent data reporting requirement in federally-funded
broadband programs and encouraging Federal broadband programs to
leverage the NBAM in the design of grant and loan programs. In
addition, supporting State-level broadband offices whose efforts were
designed to gather and validate broadband data would be helpful, as
would encouraging their formal participation in the NBAM.
SUBCOMMITTEE RECESS
The hearing now stands in recess.
[Whereupon, at 12:07 p.m., Thursday, March 5, the
subcommittee was recessed, to reconvene subject to the call of
the Chair.]