Senate hearing (117th Congress), DEPARTMENT OF COMMERCE FISCAL YEAR 2023 BUDGET PRIORITIES
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Transcript of S. Hrg. 117-833, "Department of Commerce Fiscal Year 2023 Budget Priorities," an April 27, 2022 hearing of the Committee on Commerce, Science, and Transportation, with Chairwoman Maria Cantwell presiding and Roger Wicker as Ranking member. The witness was Gina M. Raimondo, Secretary, U.S. Department of Commerce. Statements from Senators including Klobuchar, Thune, Blumenthal, Fischer, Markey and Cruz are listed in the contents. The appendix holds Secretary Raimondo's responses to written questions from Senators including Cantwell, Schatz, Wicker, Sullivan and Lee. One response states that 10 applications seeking authorization to harass killer whales would exceed the current maximum take, and that NMFS issued a new killer whale-involved authorization in May 2022.
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[Senate Hearing 117-833]
[From the U.S. Government Publishing Office]
S. Hrg. 117-833
DEPARTMENT OF COMMERCE FISCAL YEAR 2023 BUDGET PRIORITIES
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
__________
APRIL 27, 2022
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available online: http://www.govinfo.gov
_______
U.S. GOVERNMENT PUBLISHING OFFICE
54-757 PDF WASHINGTON : 2024
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
MARIA CANTWELL, Washington, Chair
AMY KLOBUCHAR, Minnesota ROGER WICKER, Mississippi, Ranking
RICHARD BLUMENTHAL, Connecticut JOHN THUNE, South Dakota
BRIAN SCHATZ, Hawaii ROY BLUNT, Missouri
EDWARD MARKEY, Massachusetts TED CRUZ, Texas
GARY PETERS, Michigan DEB FISCHER, Nebraska
TAMMY BALDWIN, Wisconsin JERRY MORAN, Kansas
TAMMY DUCKWORTH, Illinois DAN SULLIVAN, Alaska
JON TESTER, Montana MARSHA BLACKBURN, Tennessee
KYRSTEN SINEMA, Arizona TODD YOUNG, Indiana
JACKY ROSEN, Nevada MIKE LEE, Utah
BEN RAY LUJAN, New Mexico RON JOHNSON, Wisconsin
JOHN HICKENLOOPER, Colorado SHELLEY MOORE CAPITO, West
RAPHAEL WARNOCK, Georgia Virginia
RICK SCOTT, Florida
CYNTHIA LUMMIS, Wyoming
Lila Helms, Staff Director
Melissa Porter, Deputy Staff Director
George Greenwell, Policy Coordinator and Security Manager
John Keast, Republican Staff Director
Crystal Tully, Republican Deputy Staff Director
Steven Wall, General Counsel
C O N T E N T S
----------
Page
Hearing held on April 27, 2022................................... 1
Statement of Senator Cantwell.................................... 1
Statement of Senator Wicker...................................... 3
Prepared statement........................................... 3
Statement of Senator Klobuchar................................... 11
Statement of Senator Thune....................................... 13
Statement of Senator Blumenthal.................................. 14
Statement of Senator Blackburn................................... 16
Statement of Senator Fischer..................................... 17
Statement of Senator Scott....................................... 19
Statement of Senator Markey...................................... 21
Statement of Senator Capito...................................... 23
Statement of Senator Tester...................................... 24
Statement of Senator Rosen....................................... 27
Statement of Senator Cruz........................................ 28
Statement of Senator Peters...................................... 30
Statement of Senator Lujan....................................... 32
Statement of Senator Sinema...................................... 34
Statement of Senator Young....................................... 36
Statement of Senator Warnock..................................... 38
Witnesses
Hon. Gina M. Raimondo, Secretary, U.S. Department of Commerce.... 4
Prepared statement........................................... 6
Appendix
Response to written questions submitted to Hon. Gina M. Raimondo
by:
Hon. Maria Cantwell.......................................... 43
Hon. Brian Schatz............................................ 47
Hon. Kyrsten Sinema.......................................... 48
Hon. John Hickenlooper....................................... 49
Hon. Raphael Warnock......................................... 52
Hon. Roger Wicker............................................ 56
Hon. Deb Fischer............................................. 63
Hon. Dan Sullivan............................................ 65
Hon. Marsha Blackburn........................................ 69
Hon. Todd Young.............................................. 71
Hon. Mike Lee................................................ 72
Hon. Ron Johnson............................................. 78
Hon. Rick Scott.............................................. 79
Hon. Cynthia Lummis.......................................... 81
DEPARTMENT OF COMMERCE FISCAL YEAR 2023 BUDGET PRIORITIES
----------
WEDNESDAY, APRIL 27, 2022
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 9:34 a.m., in
room SR-253, Russell Senate Office Building, Hon. Maria
Cantwell, Chairwoman of the Committee, presiding.
Present: Senators Cantwell [presiding], Klobuchar,
Blumenthal, Markey, Peters, Tester, Sinema, Rosen, Lujan,
Hickenlooper, Warnock, Wicker, Thune, Cruz, Fischer, Blackburn,
Young, Lee, Capito, and Scott.
OPENING STATEMENT OF HON. MARIA CANTWELL,
U.S. SENATOR FROM WASHINGTON
The Chair. The U.S. Senate Committee on Commerce, Science,
and Transportation will come to order. Today, we have the
pleasure of hearing from the Department of Commerce Secretary
Gina Raimondo about the Department's budget request for Fiscal
Year 2023.
So welcome, Madam Secretary. Glad to have you here before
the Committee again. The Committee's commerce statutory duty is
to foster, promote, and develop foreign and domestic commerce,
and the Secretary has been very busy doing that on many fronts.
Today, we will hear about the President's budget request
and obviously the various agencies within the Department of
Commerce. I would like to start with NOAA. I see that you are
seeking an increase of about 17 percent from current funding.
The agency's National Oceanic and Atmospheric Administration
has never been more important to families facing the climate
burdens and extreme storms, weather, flooding and drought.
So we look forward to NOAA's efforts to help ensure and
sustain fisheries in the United States and to invest in
innovation that will build strong and resilient coastal
communities, something I am sure you know a lot about as former
Governor of a coastal state.
So we look forward to your work and thoughts on how we make
continued investment. I am looking forward to the Department's
response and how bipartisan infrastructure funding in these
areas can help address salmon decline.
And I look forward to hearing any updates from you on the
Office of Space and Commerce that resides within NOAA. Our
colleagues here are very interested in that. I think Senator
Wicker and I sent a letter to you on that issue. I also want to
say that Senator Wicker and I have been working on a NOAA
Organic Act.
We think this is very important in strengthening the
science and voices of the Department, and we very much
appreciate Dr. Spinrad's helpfulness in this. And so we look
forward to continue to working with you on that issue.
Secretary Raimondo also oversees the National
Telecommunications and Information Administration, obviously
also seeking an increase.
These funds will help NTIA to continue their work on
spectrum management, broadband, cybersecurity, and privacy.
Also, another very important aspect of what our Government is
facing at this time, cybersecurity and the impacts of what we
saw from Colonial Pipeline makes this investment very
necessary.
As our airwaves get more crowded and spectrum becomes
scarcer, it is critical that NTIA ensure the process of sharing
Federal spectrum goes smoothly, and that includes working with
various Federal agencies like NASA and NOAA and FAA, along with
the commercial interests. And obviously broadband funding and
equity, I am sure will be an issue that comes up at today's
hearing, given the bipartisan infrastructure investment and how
we continue to move forward on deployment.
But front and center in our minds in the U.S. Senate at
this moment is how we get to conference on the U.S. Innovation
and Competition Act, and how we give you the tools to help us
be more competitive in this economy of today. Obviously, this
committee did good work more than a year ago to help give the
Department the ability to respond to and prevent and respond to
supply chain problems and crises and competition.
So these important issues, and your budget builds on
programs like the Manufacturing Extension Partnership Program
(MEPP) and programs that assist small and medium sized
manufacturers by supporting them on workforce training, supply
chain resiliency, and technology development. And these issues,
again, I am glad to see the President's budget request in this
area.
Obviously, the agency, if the U.S. Innovation Competition
Act would pass, would receive $52 billion in funding to help us
with this chip supply chain shortage and issues. So we look
forward to asking you questions about that and our
competitiveness in this area.
We had a hearing before we left for the recess with many of
the manufacturers of some silicon--of chip manufacturing in the
United States. And they told us we didn't have time to wait. So
I hope our colleagues will heed that and help us move forward.
I think in February, you issued a report, ``Information and
Communications Technology Supply Chain,'' that revealed a lack
of supply chain diversity and domestic production, and an
underinvestment in our domestic workforce.
So look forward to hearing how the budget will help us on
that. So the current state of challenges facing us are many. We
look forward to hearing your comments on that. And I will turn
it over to my colleague, Senator Wicker, for his opening
statement.
STATEMENT OF HON. ROGER WICKER,
U.S. SENATOR FROM MISSISSIPPI
Senator Wicker. Thank you, Senator Cantwell. It is great to
be back in here. Good to see Secretary Raimondo again. I am
going to put my whole statement in the record and just tell you
what my statement was going to say. I appreciate you coming to
Mississippi early on. Also, please tell Secretary Graves how
much we appreciate his visit.
My statement will indicate my support for funding increases
for Manufacturing USA program, Manufacturing Extension
Partnership, and of course, the Minority Business Development
Agency, which we intend to utilize quite effectively in
Mississippi. The Chair is correct that we eagerly await the
final passage of USICA.
I do believe in the end it will greatly resemble the
product that Senator Cantwell and I have worked on. And again,
we want to hear today about plans to distribute over $40
billion in broadband buildout, most important to states like
mine in the great heartland of America. I also look forward to
hearing about Spectrum Coordination Initiative, the
Transatlantic Data Privacy Framework, as the Chair says, the
Office of Space Commerce.
And then if I can take a deep breath and say no hearing
with commerce would be complete without a mention of red
snapper. And so I hope the Department's request for increased
funding to build a fisheries survey that is accurate will
proceed. Recreational fishermen are an important part of our
economy. They should not be unfairly penalized for inaccurate
Federal data.
And in my state of Mississippi, we have developed a very
nifty way, scientific way of giving an accurate understanding
about the recreational harvest, and I look forward to
continuing to work with NOAA. Having said that, I ask unanimous
consent that my full statement be admitted into the record, and
I am absolutely delighted to have this wonderful public servant
with us today.
The Chair. Without objection.
[The prepared statement of Senator Wicker follows:]
Prepared Statement of Hon. Roger Wicker, U.S. Senator from Mississippi
Thank you Senator Cantwell. I too would like to welcome our
distinguished witness, Department of Commerce Secretary Gina Raimondo.
Today's hearing will focus on the Department's budget request for
Fiscal Year 2023 and provide oversight of its agencies and programs. I
would also like to thank Secretary Raimondo and Deputy Secretary Graves
for their visits to my home state of Mississippi.
Madam Secretary, you are to be commended for your leadership and
work on a number of important funding requests that are reflected in
the administration's FY23 budget request. Although there are too many
programs to address in my brief remarks, let me single out my support
for the proposed funding increases for the Manufacturing USA program,
the Manufacturing Extension Partnership, and the Minority Business
Development Agency (MBDA). These important programs will help support
small businesses, minority entrepreneurs, and manufacturers to create
jobs and grow key sectors of our economy.
Congress has offered strong support for these programs--and other
initiatives to strengthen domestic manufacturing and supply chains--in
the Senate-passed U.S. Innovation and Competition Act and in the House-
passed America COMPETES Act. These bills also include funding for the
CHIPS Act, a long-overdue initiative to help restore U.S. leadership in
semiconductor manufacturing and R&D. The committee would welcome
Secretary Raimondo's perspective on the urgency of funding the CHIPS
Act and of Congress delivering a conference report.
Last year's Bipartisan Infrastructure Law placed the Department of
Commerce's National Telecommunications and Information Administration
(NTIA) at the center of our efforts to expand broadband access and
close the digital divide. I look forward to hearing an update on NTIA's
preparation to distribute over $40 billion for broadband buildout to
the states, as well as any updates on when the FCC's new broadband maps
will be completed.
One key aspect of broadband expansion is improved spectrum
coordination. Today's hearing is an opportunity to discuss how NTIA's
recently announced Spectrum Coordination Initiative with the FCC will
promote more efficient and effective spectrum management policies for
Federal and non-federal users.
In March of this year, President Biden announced a Trans-Atlantic
Data Privacy Framework with the European Union (EU). This new framework
would reestablish a legal mechanism for the transfer of EU citizens'
personal data to the United States. I hope the Secretary will update
the committee on what additional actions we can expect from the
Administration as it finalizes this agreement with the EU.
I want to applaud the Department's $88 million request for the
Office of Space Commerce, or OSC. Senator Cantwell and I have supported
legislation known as the SPACE Act to codify the OSC's role in tracking
of space objects and debris. The committee would appreciate hearing the
Secretary's vision for the OSC and the opportunities for U.S. commerce
in outer space.
Finally, no Department of Commerce hearing would be complete unless
I mentioned red snapper. I hope the Department's request for increased
funding to build fisheries survey capacity will help improve how NOAA
calculates catch limits. Recreational fishermen should not be unfairly
penalized for inaccurate Federal data. In my state of Mississippi, we
have invested significant time and money to develop a more accurate
understanding of how much fish recreational fishermen harvest. I will
continue to work with you and NOAA to reach that outcome.
Madam Secretary, there are a lot of topics to cover this morning. I
look forward to your remarks and the discussion.
The Chair. Secretary Raimondo, again, welcome. Thank you so
much. I think hearing the list of both my statement and Senator
Wicker's makes us tired just thinking of all the oversight and
responsibilities that--yes, so we look forward to hearing your
comments. Thank you.
STATEMENT OF HON. GINA M. RAIMONDO, SECRETARY,
U.S. DEPARTMENT OF COMMERCE
Secretary Raimondo. Well, thank you both very much for
having me here. And thank you for all of your partnership since
I have had this job over the last year. I can't tell you how
much I appreciate your support. Yes, the Commerce Department's
mission is broad, and I would argue more important than ever.
The issues that you have just said are more important than
ever. So permit me, please, to go through the six key areas
that we are asking for additional funding, where the
President's budget asks for additional funding. All of these
investments are focused on the same goal, which is to enhance
America's ability to compete. So first, the budget strengthens
the Nation's supply chains by investing in domestic
manufacturing.
As Senator Wicker said, it calls for $275 million of an
increase in the Manufacturing Extension Program, and $97
million for Manufacturing USA, both of which are aimed at
strengthening domestic supply chains, with a particular focus
on small and medium sized manufacturers to help them improve
their competitiveness. The budget also proposes $16.1 million
to augment the Commerce Department's data, tools, and expertise
to support more secure and diversified supply chains.
Second, the budget positions us to compete globally,
protect our National Security, and continue to lead a global
coalition united against Russia's aggression. Specifically, it
calls for $630 million for ITA to enhance commercial diplomacy
and export promotion, and also provides BIS nearly $200 million
to apply and enforce export controls and strengthen our efforts
to counter new threats from China and Russia.
Third, the budget invests in equitable and inclusive
economic growth for all Americans. I firmly believe that
America's diversity is our greatest strength and our
competitive advantage. As a result, this budget provides for
$500 million for EDA to help communities experiencing economic
distress take control of their future and position themselves
for economic prosperity and resiliency.
It proposes $110 million for the MBDA, which the ranking
member just mentioned, to meet the full authorization that was
included in the bipartisan infrastructure law. And part of this
funding will be used to open new regional offices and establish
rural business centers in partnership with minority serving
institutions.
Fourth, the budget takes historic action to combat the
climate crisis. I certainly agree with you, Chairwoman, that
there has never been more important time for NOAA as it relates
to climate. The budget accordingly includes $6.9 billion for
NOAA to continue providing data, strategies, and expertise
necessary to address the climate crisis.
The request also supports programs to catalyze wind energy,
restore habitats, protect oceans and coasts, and improves
NOAA's ability to predict extreme weather events associated
with climate change. The budget also proposes $87 million for
the Office of Space Commerce, which I expect we will talk about
today.
Fifth, the budget expands opportunity and discovery through
data. Timely data is critical to supporting American
competitiveness, innovation, and growth of quality jobs. The
budget provides the Census Bureau with $1.5 billion to continue
its transformation to a 21st century data centric model and
calls for $141 million for the BEA to support new data on
supply chains.
And finally, sixth, the budget ensures the Department can
provide 21st century service to the American public. It
proposes new funds to enhance cybersecurity and increase the
diversity and equity of our workforce in cyber.
And finally, I must close by--with mentioning USICA. I want
to begin by thanking you both for your incredible leadership on
this and pledging to you here and now to do anything in my
power to get this over the finish line in a bipartisan way as
quickly as possible because the need is urgent, as the
Chairwoman said.
The Commerce Department has key priorities in the bill,
many of which are this committee's priorities as well,
including the $52 billion for chips funding, the tech hubs,
supply chain authorities. I cannot say strongly enough the
urgency with which we must act.
Other countries aren't waiting for us. China has invested
$150 billion. Germany, Singapore, Spain, France are all
investing. Existing fabs are operating at 90 percent capacity
today, and demand is about 17 percent above pre-pandemic
levels. The time for us to act is now, and I look forward to
working with you to do that.
[The prepared statement of Secretary Raimondo follows:]
Prepared Statement of Hon. Gina M. Raimondo, Secretary,
U.S. Department of Commerce
Chair Cantwell, Ranking Member Wicker, and members of the
Committee, thank you for this opportunity to discuss President Biden's
Fiscal Year 2023 Budget Request for the U.S. Department of Commerce.
The priorities reflected in this Budget build upon the important
investments you enacted in Fiscal Year 2022 through annual
appropriations, the Bipartisan Infrastructure Law, and the Ukraine
Supplemental Appropriations Act. I am grateful for your support of the
Department as we look forward to accomplishing even more in Fiscal Year
2023.
The President's Budget Request includes $11.7 billion for the
Department of Commerce, an 18 percent increase above the Fiscal Year
2022 enacted level. The investments proposed in this budget will
position us to continue fulfilling the Department's mission to create
the conditions for economic growth and opportunity for all communities,
implement the recently published 2022-26 Departmental Strategic Plan
(Innovation, Equity, and Resilience: Strengthening American
Competitiveness in the 21st Century), and support the President's
economic vision for America--to build our economy from the bottom up
and the middle out.
Today, I will focus on six key areas of investment within the
President's Budget for the Department of Commerce.
First, the Budget strengthens the Nation's supply chains by investing
in
domestic manufacturing.
The Budget calls for $275 million for the National Institute of
Standards and Technology's Manufacturing Extension Program, or MEP,
which is an increase of $117 million over FY 2022. Today, there are 51
MEP centers that work with manufacturers to help them develop new
products and customers, expand and diversify markets, adopt new
technology, and enhance value within supply chains. The additional
investment in MEP will enable the centers and their clients to respond
quickly to new market opportunities by working at all levels of the
supply chain, from original equipment manufacturers to suppliers, and
with state and Federal governments. It will also facilitate initiatives
to expand the pool and diversity of workers in the manufacturing
sector, by partnering with workforce organizations to coordinate and
tailor services to meet the needs of local manufacturers.
The Budget also includes $97 million for Manufacturing USA. The
U.S. government currently funds 16 Manufacturing USA Institutes, one of
which is sponsored by the Department of Commerce. Each Manufacturing
USA Institute is a public-private partnership with a distinct
technology focus, such as advanced composites, additive manufacturing,
biofabrication, smart manufacturing, and sustainable manufacturing.
Each institute works to secure the future of U.S. manufacturing through
innovation, education, and collaboration. With this request, the
Department of Commerce will maintain funding for our current institute,
which focuses on biopharmaceutical manufacturing, and sponsor four new
Manufacturing USA Institutes that will promote collaboration on
industry-relevant research and development to spur manufacturing
innovation in the U.S.
The Budget also proposes $16.1 million to augment the Commerce
Department's data tools and expertise to support more secure and
diversified supply chains. This investment will provide Bureau of
Economic Analysis (BEA) $5.2 million and 15 positions to better collect
data on U.S. participation in global supply and distribution chains and
will provide the International Trade Administration (ITA) $10.9 million
for 38 positions for additional capacity needed to strengthen supply
chain resilience by allowing us to track the supply of goods and
services and respond to acute disruptions.
Second, the Budget positions us to compete globally, protect our
national security, and continue to lead a global coalition
united in
condemnation of Russian aggression against Ukraine.
The Budget calls for $630.8 million for the International Trade
Administration (ITA), $72 million above the FY 2022 enacted level.
Within this, the Budget calls for investments to strengthen commercial
diplomacy in targeted areas of high economic and geostrategic value,
including the Indo-Pacific region, which will assist U.S. companies
competing in these important markets.
The Budget provides the Bureau of Industry and Security (BIS)
$199.5 million, representing an increase of $58.5 million, or 41
percent more than the FY 2022 enacted level, to apply and enforce
export controls to advance our national security objectives. Within
this, the Budget includes $36 million to secure the information and
communications technology and services (ICTS) supply chain and $10
million in new funding to strengthen national security efforts to
counter current and emerging threats from Russia and China.
Third, the Budget continues a focus on equitable and inclusive economic
growth for all Americans.
We fail to meet our full potential as a nation if we are not
investing in all underserved communities, workers, inventors, and
entrepreneurs.
The Budget provides $502.5 million for the Economic Development
Administration (EDA) to help communities experiencing economic distress
take control of their future and position themselves for economic
prosperity and resiliency. Within this, the Budget includes $50 million
for the new Recompete Pilot Program, which will provide grants to
communities experiencing high prime-age employment gaps. It also
increases funding for the Assistance to Coal Communities program, to
continue to assist communities economically impacted by changes in the
coal industry. The most directly comparable portion of EDA's American
Rescue Plan Act Coal Communities Commitment was the Economic Adjustment
Assistance portion, and this was significantly oversubscribed with
applications totaling more than twice the $200 million in funding
available. With additional funding, we would be able to better support
these and so many other communities.
The Budget proposes $110 million for the Minority Business
Development Agency (MBDA), double the FY 2022 enacted level, necessary
to meet the full authorization this Committee put forth in the Minority
Business Development Act included in the Bipartisan Infrastructure Law.
This funding will build MBDA's capacity and expand existing grant
programs, including the flagship business and specialty center
programs, opening regional offices, and establishing a Rural Business
Center program.
Fourth, the Budget takes historic action to combat the climate crisis.
The coast-to-coast devastation caused by extreme weather events has
been heartbreaking to watch. Extreme winds, tornadoes, hurricanes,
wildfires, heat, and floods threaten lives, families, homes, and
businesses. Addressing the climate crisis is an essential component of
the Department's mission to create the conditions for economic growth
and opportunity.
The Budget includes $6.9 billion for the National Oceanic and
Atmospheric Administration (NOAA), an increase of $986 million from the
2022 enacted level to ensure the Department is providing decision-
makers across the public and private sectors with critical, actionable
data, strategies, and expertise to address the climate crisis. The
Department will bolster equity in its service delivery to ensure that
our most vulnerable communities, including tribal, rural, and other
underserved populations, have access to the information and tools they
need to make climate-smart decisions. The Budget includes additional
funding for the Climate Competitive Research Program to provide
decision-makers with the information and tools they need to respond to
climate change, and to provide climate change projections out to 2050.
Our budget request for NOAA also supports programs to catalyze wind
energy, restore habitats, protect the oceans and coasts, continue
education and outreach efforts in local communities, and improve NOAA's
ability to predict extreme weather, including events associated with
climate change. It also includes $2.3 billion to support the Nation's
weather and space weather satellite enterprise, which is a $667 million
increase above the FY 2022 enacted level, to ensure the continuity of
our world-class weather observation capability. The next decade is a
critical time to address the climate crisis, and with this Budget, NOAA
has a once in a generation opportunity to advance climate resilience
and promote economic growth.
Additionally, the Budget proposes $87.7 million for the Office of
Space Commerce, a $71.7 million increase above the FY 2022 enacted
level. The U.S. commercial space industry pioneers innovative
technologies that transform our daily lives, gather critical data,
enable communications, and help secure the Nation. This significant
increase in funding for the Office of Space Commerce will be dedicated
to standing up a civil, operational Space Situational Awareness (SSA)
capability at NOAA that meets the industry's needs.
Fifth, the Budget expands opportunity and discovery through data.
The Nation's economy, technology, and demographics are changing
rapidly and profoundly, making timely data crucial for developing the
insights needed to support American competitiveness, innovation, and
growth of quality jobs. The Budget provides the Census Bureau with $1.5
billion to enable it to continue its transformation from a 20th century
survey-centric model to a 21st century data-centric model that provides
more timely and relevant data products to our stakeholders. The Budget
also calls for $141 million for BEA, $25 million more than the FY 2022
enacted level, to support new data on the supply chain, income
distribution statistics, health care spending, and growth of the space
economy to better inform decision-makers.
Sixth, and finally, the Budget ensures the Department can provide 21st
century service to the American public.
The Budget proposes new funds to enhance cybersecurity and increase
the diversity and equity of our workforce. It also proposes investments
to improve technology and customer experience. These investments will
ensure that the Department can provide best in government services to
the American public. The mission of the Department could not be carried
out without our dedicated employees. They have persevered through new
challenges and emerged more resolute to help the Department achieve new
heights.
***
Together, in the face of extraordinary challenges, we are building
a 21st century economy that is keeping America competitive globally and
positioning America's workers and businesses for success. We are
already witnessing historic levels of job creation and economic growth.
But there is more work to do. I look forward to working with you to
enact the President's FY 2023 Budget for the Department of Commerce to
do that work. I am happy to take your questions.
The Chair. Thank you, Madam Secretary. That is a great
list, and we appreciate your enthusiasm as well on this and
look forward to working with you. If I could start with NOAA. I
was pleased that the Department of Commerce executed funding
for the Pacific Coastal Salmon Recovery Fund and the National
Ocean and Coastal Security Resiliency Fund.
These are important aspects of our bipartisan efforts. I am
concerned that the Department, or NOAA may not be taking an
active leadership role in culvert removal. One of the big
issues that we have seen across the United States is
infrastructure that has created blocking for fish passage.
So will you work with the Department of Transportation and
NOAA science to get more aggressive on this program?
Secretary Raimondo. Yes. With DOT and also Interior. Yes.
The Chair. Yes. Thank you. Well, we just again, I can give
you examples across the United States of the same problem. I am
very well aware of them in the Northwest. But the bottom line
is our transportation infrastructure has blocked fish passage
and we need to correct that issue, so thank you.
You mentioned the chip shortage. I wondered if you could
talk about, given Russia's attack on Ukraine and disruptions of
the pandemic and vulnerabilities of the U.S. supply chain,
how--what is it that we need to do to make sure that the--that
we get ahead of this from a supply chain perspective on chips,
and what we need to do to also get the workforce to be ready to
catapult--our information is that the shortage that we
experienced today is only going to double or triple if we don't
get more in manufacturing.
But we are also trying to understand why catching up as
soon as possible is critically important. So if you could
comment on that.
Secretary Raimondo. Yes. So the budget, the President's
budget calls for an increase for supply chains, which will
enable us to meet the immediate crisis caused by Ukraine,
caused by COVID. But that isn't nearly enough. That is treading
water barely. Right now in the Commerce Department I have 40
different workstreams on supply chains going. We have a handful
of people doing it.
Other countries have five or ten times as many people doing
supply chain work. What we really need is what USICA provides
for, which is an ongoing, robust supply chain management
infrastructure in the Federal Government so we can do constant
continuous mapping and monitoring, data analytics, stakeholder
engagement, predicting bottlenecks.
Like the reason we are in this mess is because we haven't
been doing that. And with respect to chips, I don't think it is
an exaggeration to say this is a national emergency. It is
threatening our National Security as well as our economic
security. We did a RFI. Over 150 semiconductor supply chain
companies responded.
They are operating at their max capacity. The average
consuming industry has fewer than 5 days of inventory. I hear
every day medical equipment manufacturers, military--I have
been talking to all the defense contractors. Their bottleneck,
the rate limiting factor is chips. So I don't know how else to
say it.
We need to invest this money to increase domestic
production of chips and use some of the money, as you said, to
invest in our workforce. We don't have the workforce now. We
need the workforce developed.
And by the way, we need it all over the country, which is
why I think the tech hubs are just as important.
The Chair. And, well we definitely agree on the tech hubs.
I want to make sure, though, that we understand this timing
issue. I think, you know, as manufacturers, and the shortages
become clear to everybody around the globe, other people are
moving faster than we are----
Secretary Raimondo. Yes. Thank you.
The Chair. And the faster they move, the more the money
follows. And so I really am worried that we are--that even
investments that people have announced----
Secretary Raimondo. Yes.
The Chair. That, you know, they are going to build, say, in
Ohio----
Secretary Raimondo. Yes.
The Chair. So I just hope that people realize that that--
the longer we wait, the longer we don't send that signal, the
more that that initial investment may not go to Ohio, it may go
over to Germany or someplace else. And so I am just trying to
get people to understand why this signal is so important.
Secretary Raimondo. Thank you for putting a fine point on
it. You are exactly right. So as you say, Germany, Singapore,
Spain, France, obviously China are all right now, right now,
wooing Intel, Micron, Texas Instruments, all of our companies
to set up facilities in their countries. And I have spoken with
all of these CEOs.
They would--they want to operate in America, but they
cannot wait because demand for chips is up 20 percent where it
was a couple of years ago. They are going to build. And if we
don't act quickly with USICA, they will build elsewhere. If we
do act quickly, they will build here, and as you say, go from a
$20 billion investment to $100 billion investment in Ohio.
The Chair. Thank you. Senator Wicker.
Senator Wicker. Madam Secretary, I think semiconductors and
the chips issue is a National Security issue. You do agree with
that?
Secretary Raimondo. 100 percent, yes.
Senator Wicker. And National Security issues have certainly
been emphasized and heightened in the last few months because
of what we see and what we are looking at over the horizon.
There have been some people who object to the grants. These
grant recipients are going to be big companies. Some of them do
business in China.
There is a school of thought that this would be better done
through trade negotiation policy. So why is it so important to
follow the approach that is in the USICA Act. And if you could
elaborate on that for a moment or two.
Secretary Raimondo. Yes. Let me say this. I want you to
know and be reassured that my top priority will be protecting
taxpayers. And I have a long track record in public service of
doing that. There are claw back provisions, would--you know, if
this money were to be used by companies that are violating our
export controls, we would claw the money back.
There are taxpayer protections in statute and that we will
further strengthen in regulation. This money cannot be used to
build facilities in China, etcetera. At the end of the day,
though, just like the Chairwoman and I were talking about, if
we don't act, these chip companies will--they are going to
increase their production. And the question----
Senator Wicker. Quickly.
Secretary Raimondo. Quickly. Now, now. I have talked to
them all. I talk to them all. By the way, I talked to all the
national defense contractors recently who are working overtime
in the Ukraine replenishment issue and their biggest pain point
is chips. There are 250 chips or more in every javelin
launching system.
Senator Wicker. Thank you for making that point.
Secretary Raimondo. So this has to happen. It has to happen
now. And if you want these companies, yes, they are big, yes
they are profitable, to expand facilities in America, you must
pass the CHIPS Act, USICA, and do it quickly.
Senator Wicker. Let's talk about spectrum management and
coordination. A lot of agencies like to get their fingers into
this issue. I welcome the Spectrum Coordination Initiative
between NTIA and the FCC.
Can you comment on how this new initiative will foster more
efficient and effective spectrum management policies, and also
how this will ensure that NTIA is in fact the voice rather than
other agencies for representing the Executive Branch on
spectrum management.
Secretary Raimondo. Yes, thank you. I am very excited about
this initiative. We launched it in February, and we are also in
the process of renegotiating a 20 year old MOU as between NTIA
and the FCC, because as you know, we have a--there is a
complementary relationship between the FCC and NTIA and we are
in charge of federally owned spectrum.
And so we are going to start increasing our presence in the
interagency to make sure that we have better coordination with
the FCC, but also, frankly, NTIA needs to be elevated in the
discussion because we need an Administration wide, Government
wide spectrum strategy, and we need to kind of do that in
coordination, you know, with our partners in Government.
Senator Wicker. Very good. And then let me use the last
minute and 17 seconds to talk about recreational fishing. NOAA
has the Marine Recreational Information Program, MRIP, and it
is not very good. Our state of Mississippi has developed the
Tails n' Scales and is known to be the strongest survey of red
snapper fishing in the country. We would like for NOAA to
uphold the state data as the best available science.
And as a matter of fact, Texas has never participated in
MRIP, and they are allowed to proceed in their own way.
Louisiana has stopped participating in MRIP. The West coast
uses only state data, and on top of that, NOAA helps them
manage their state data.
So will you work with me to help Mississippi and other
states transition away from this very flawed MRIP toward a
State managed survey system like the West coast has, and to a
system like Tails n' Scales, which is, in fact, better. It is a
leading question.
[Laughter.]
Secretary Raimondo. Yes. I shouldn't laugh. The answer is
yes. And I know how important this is to you and your state. I
have enjoyed visiting your state. I have a bit of good news,
which is that NOAA is going to be releasing a proposed rule
soon, which is going to increase the catch limits for 2023.
And we have an initiative underway right now to do a better
job of reconciling the state with the Federal surveys. I know
we have room to go, but I think we have made progress since I
have been here, and we will stay on it.
Senator Wicker. Perhaps a step in the right direction.
Secretary Raimondo. Thank you.
The Chair. Thank you.
Senator Wicker. Further to go.
The Chair. Thank you.
Secretary Raimondo. Further to go, fair enough.
The Chair. Well, I definitely proposed as part of Build
Back Better major investment in stock assessment, because you
can't do any management if you don't have the stock assessment.
So we will keep working on this. Senator Klobuchar joining us
online. Thank you.
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you. And thank you, Chair
Cantwell. And I am going to ask Secretary Raimondo, sorry about
this, but we are headed to Secretary Albright's funeral. And so
I wanted to get some really important questions in, but also to
thank you for your work. And I think to make it easier, I will
just ask my question so you don't have to keep hearing me go
back and forth here, and then you can answer.
So my first question is about the American Innovation and
Choice Online Act. As you know, I chair the Antitrust
subcommittee. We are really excited about the progress that
Senator Grassley and I are making with this bipartisan bill to
promote innovation. And I would love to hear your views about
that.
And we know how important tech is to our economy. And we
also want to make sure there is strong competition going on and
that we are don't unfairly discriminate against certain
businesses and we make sure that everyone gets a fair shake on
these platforms. My second question is just a quick update on
tourism, something near and dear to our hearts. Roy Blunt is on
this bus with me.
I know he would be asking the same question. And I also
want to thank Senator Rosen for her good work on that front.
And my third, just to emphasize the importance of the bill that
Senator Thune and I just passed on shipping, because we want to
make sure we get good rates when it comes to the international
conglomerates, and if you could quickly comment on the
importance of that.
So I want to thank you again for your incredible work and
especially what you are doing on supervising the broadband
piece of the bipartisan infrastructure bill. Look forward to
hearing your answers. Thank you.
Secretary Raimondo. Thank you, Senator, and thank you for
making the time to call in. I think I got all of that. So on
the first question, you know, I applaud your efforts and I have
enjoyed talking to you and Congressman Cicilline and clearly
agree that we need to improve competition, which increases
innovation.
And last month, the DOJ released a views letter on behalf
of the Administration in support of the American Innovation and
Choice Online Act, and the Department and I, you know,
certainly support that and concur with, you know, the aim of
the legislation and the views expressed in that views letter.
Your second question, as I heard it related to tourism, and I
think the Brand USA, I do--I want to thank this committee and
Congress for the work you have done to provide the $250 million
for Brand USA.
I cannot underscore enough how important that is. I don't
have to tell you, and you, Senator Klobuchar, the travel and
tourism industry is still struggling. There is still about a
million and a half fewer jobs in travel and tourism today than
pre-pandemic.
And particularly business travel and international travel
have absolutely not recovered. So we have moved quickly to get
half a billion dollars already out the door from the ARP money.
We have another NOFOs for another $250 million on the street
now, but the Brand USA--and by the way, I should say for the
$250 million, we were six times oversubscribed. So again, we
need this.
We need to do this. And of course, I come from a state that
is incredibly dependent on tourism for jobs. So thank you for
your support of Brand USA. We need it and we have got to get a
million and a half people back to work who are still out of
work. And then the last question on shipping, this is obviously
more in Secretary Buttigieg's lane, but certainly your
legislation is something that we support.
And as we deal with supply chain challenges, we have to
look at every--there is no one silver bullet to supply chain.
We have to parse it out. And shipping and shipping costs are a
real problem now. And so I support legislation that is aimed at
solving that problem.
Senator Klobuchar. Well, thank you very much for the
answers. Appreciate it. Thank you, Chair Cantwell, for
accommodating this. Thank you.
The Chair. Yes. I have Senator Thune as next, but I don't
know if he is available. Well, maybe he is available----
Senator Wicker. There is no telling where he is.
[Laughter.]
The Chair. Senator Thune, I don't know if you want a minute
to prepare or if you are ready to go. We would certainly
accommodate you to ask your questions at this point in time.
STATEMENT OF HON. JOHN THUNE,
U.S. SENATOR FROM SOUTH DAKOTA
Senator Thune. Thank you, Madam Chair. And thank you for
calling my name, I just showed up, but--Madam Secretary,
welcome. Thank you for being here. Let me start by just talking
about the BEAD Program. In order for that program to be
successful, we have got to encourage participation from all
types of broadband providers.
As long as they have met the objective technical,
financial, and operational standards set by NTIA--and any
inclusion of burdensome requirements such as net neutrality,
wholesale access, or rate regulations is only going to
discourage participation. So I would like to ask you to commit
once again that you will follow the letter of the law and not
add extraneous requirements as other agencies seem to be intent
on doing with broadband money.
Would you ensure that NTIA carries out its duty and
implements the BEAD Program within the confines of the statute?
And will you commit that NTIA does not include net neutrality,
wholesale access, or rate regulation requirements like other
agencies have done?
Secretary Raimondo. Yes. Let me speak to that. As you know,
the statute expressly prohibits rate regulation, and we--and I
was heavily involved in negotiating that. So I understand the
limits and we will comply with the statute. Having said that,
it is, and we intend to work with all providers, whether that
is electric utilities, you know, mile providers, big ISPs,
rural co-ops, etcetera.
The President has been very clear that we have to make sure
at the end of implementing this program, every American, every
tribal lands, rural lands, et cetera, has access to high speed,
affordable internet. And so we are as focused on access as we
are on affordability.
And so we will be consistent with the statute without doing
what we are not allowed to do, working with states who are
developing their state plans to make sure that there are
affordability provisions. And I believe that there are ways to
do that, which do not involve rate regulation or, you know,
violating the statute. But affordability is as important as
access.
Senator Thune. And I don't disagree. And I think that the
key, in my view, at least, is to not discourage providers from
participating. You want to get as many, particularly those in
unserved and underserved areas, to participate in the programs
that are available.
And I understand that the statute prevents rate regulation,
but there is a lot of conversation around some of these other
issues like net neutrality, which, if that was going to be
included, ought to be done by the FCC, not other agencies of
Government. And so adding additional requirements, I think, is
going to discourage participation. So I am just----
Secretary Raimondo. Yes, I understand. The FCC, as you say,
the FCC regulates net neutrality, not us. And listen, we are
pro-competition. Competition drives down prices. We are working
hard to figure out how to structure this program to encourage
competition which benefits the consumer.
Senator Thune. Right, good. As you know, 5G connectivity
will require hundreds of thousands of small cells and other
equipment and deploying this infrastructure can be
unnecessarily burdensome and lengthy, with multiple series of
approvals required that lack certainty with respect to if and
when a Governmental entity will grant approval.
The type of approvals required, fees imposed for deployment
of networks can be particularly problematic, leading to delays
in wireless infrastructure deployment, which is a particular
concern as we seek to deploy 5G as rapidly as possible
throughout the United States.
And last Congress, I introduced a piece of legislation
called the Streamline Small Cell Developed Deployment Act to
address many of these issues. And with all the funding that is
being made available to construct and deploy fixed and mobile
networks, do you support efforts to streamline permitting
requests so that consumers can reap the benefits of these new
technologies more quickly?
Secretary Raimondo. Yes. Yes. I will say this, and I have
firsthand experience with this as Governor, a lot of the
regulations and permitting requirements, which will slow down
broadband deployment, are at the State and local level.
And so, you know, we are going to work with states to
encourage them to provide simple things like access to
telephone poles, dig once provisions. This red tape absolutely
stands in the way of rapid deployment, and so, yes, I do
support those efforts.
Senator Thune. Good. We will look forward to working with
you on that, because it is something that I think acts as a
deterrent to a lot of the build out that we are going to need
to get these networks up and operating.
Finally, my time is expiring here. Very quickly, how does
the NTIA plan to address coordination issues with other
broadband programs, such as those that are administered by the
FCC, USDA, and Treasury?
Secretary Raimondo. Yes. So I would say, in my zero time,
it is a challenge. We are on it. The President appointed Mitch
Landrieu to be the coordinator across all of the agencies. And
I can assure you, we do meet regularly, myself with Secretary
Vilsack and his team, Secretary Holland. And we are requiring
in every State plan that they show us how they are planning to
use in every state all of their Federal money. So we are going
to have it all in one place so we can see it, so we can try to
coordinate. But I will grant you, it is a real challenge.
Senator Thune. Thank you, Madam Chair.
The Chair. Thank you, Senator Thune. Senator Blumenthal.
STATEMENT OF HON. RICHARD BLUMENTHAL,
U.S. SENATOR FROM CONNECTICUT
Senator Blumenthal. Thanks, Madam Chair. Thank you for
being here today, and thanks for all your great work as
Secretary of Commerce and as Governor of our neighboring State.
I want to pursue this line of questioning on the NTIA and the
historic investment that our Nation is making into broadband.
NTIA is responsible for implementing this grant program.
Literally billions of dollars, a total of $65 billion will be
given as part of this program and I think we have an obligation
to make sure that it provides for universal access, American
manufacturing, high quality jobs, and competition.
Senator Markey and I wrote a letter to NTIA in March
regarding the Broadband Equity, Access and Deployment Program.
And to just come right to the point, because I know you are
familiar with it, we believe, and I think many of us do, that
there is a clear need to require companies building new fiber
networks with Federal money to allow competitors wholesale
access at reasonable cost.
Otherwise, we are just going to subsidize a new set of
monopolies in underserved or unserved areas where there is no
competition now. I am asking you for a commitment that you will
impose standalone wholesale access requirements or incentives
in the NTIA broadband grant program.
Secretary Raimondo. Yes. So as we just discussed, let me
say this, we share totally your commitment to affordability, to
competition, and to access. The requirement, I don't think is
something we can do as--because of the statute. Incentives are
a different matter. And the way we are implementing this
program, we are allowing for flexibility on a state-by-state
basis. You know, it is very different in every state.
So we are going to ask each state to provide us with a plan
that we will have to approve that to our satisfaction provides
for affordability. Wholesale is a way to do that. Also, we are
crystal clear that every provider who accepts even a penny of
Federal money must provide a low cost option.
Senator Blumenthal. Well, let me just interrupt for a
moment because you give away the money, you set the rules and
the conditions for how the money is used. Yes, the law may not
enable you to impose new requirements, new rules that are
unbased on the statute.
But they do permit, and in our view, the spirit of the law
is that you require that wholesale access be one of the
criteria for providing these grants. I am going to move on
because maybe we can follow on other topics.
This is complicated, and I would like to pursue this
conversation with you, but I think you understand Senator
Markey and my----
Secretary Raimondo. Yes. I am happy to follow up with you.
Senator Blumenthal. Let me ask you about another proposal
relating to big tech. Senator Klobuchar raised the Online
Competition Protection Act that she has introduced, and I am a
co-sponsor of it. But the Kids Online Safety Act really is the
result of five hearings.
The subcommittee on Consumer Protection, which I chair,
held those hearings and we have bipartisan support for a
measure that would give parents the tools and the means they
need to protect their children from the toxic content given by
black box algorithms to them.
I can give you more about the Kids Online Safety Act. I
believe you are familiar with it. Will you support it?
Secretary Raimondo. Yes, 100 percent. I would like to
answer this first as a mother of two teenagers. I think this is
long overdue legislation. The goals of your legislation are
laudable, and as a Commerce Secretary, I feel equally strongly
about it. It is long overdue. We see the corrosive effects.
So, yes, I will help you in any way. Also in President
Biden's unity agenda, he is very focused on mental health and
increasing mental health services, particularly to young
people. Much of the reason we have that need is because we have
not done a good enough job regulating the content online,
particularly as it relates to our kids. So I applaud you for
the initiative.
Senator Blumenthal. Thank you. My time has expired, but if
we have a second round, I would like to ask you about efforts
by the Department of Commerce to crack down on Russia's use of
our technology. The Commerce Department has a very important
role in export controls.
I know you are working hard on it. And I hope that at some
point during your testimony this morning, you will update us on
the very important work that your Department is doing on export
controls to deprive Russia of the technology that it can use on
the battlefield and internally to promote its aggression.
The Chair. Thank you. Thank you. Is Senator Scott
available? I have him joining us remotely. If not, Senator
Blackburn.
STATEMENT OF HON. MARSHA BLACKBURN,
U.S. SENATOR FROM TENNESSEE
Senator Blackburn. Thank you, Madam Chairman. And Madam
Secretary, thank you for your time today. I want to thank you--
also, you just made some kind comments and supportive comments
of the Kids Online Safety Act that I have worked on with
Senator Blumenthal, so we thank you for that. I have another
tech area I want to go to. The Administration and the EU
announced that they had reached a deal on the Transatlantic
Data Privacy Framework--pardon me.
And the information put out by the White House on there
said that there were further pieces of the framework that were
going to need to be adopted by both sides. And more information
was going to be forthcoming. And then the EU is also moving
forward with rules for data use by connected devices and
services, and these rules would restrict data transfers to
certain countries.
So I would like to hear from you, when do you expect the
Transatlantic Data Privacy Framework to go into effect, and
when are we going to get the details for this? When are
businesses going to know what those details are? And what
guidelines and guidance is available for companies who want to
engage in cross-border data transactions now, before the
framework goes into place?
Secretary Raimondo. OK. Thank you, Senator, for your
excellent question. So I will say first, we sat at the table
for a year in order to reach this historic agreement. And I was
very involved in that negotiation and very excited to announce
that we came to terms with the EU. And I know this is very
important to Chair Cantwell.
I mean, the truth of it is we share the same privacy values
as the EU, and we ought to be able to have come to an
agreement. So we came to an agreement in principle. And the
next step is that we will codify that in an Executive Order,
and then we will wait for an adequacy decision from the EU. And
I--we are working furiously on that. I think it will be very
soon before you see the Executive Order.
And then, as you say, we will have to wait for the European
Court to give us inadequacy decision. In terms of what
companies can expect now, there really isn't any more
information that we can put out now of other than to say that
for companies, who many of whom I have heard from, especially
small companies, they are breathing a sigh of relief to know
that we will have a framework which will be, you know, a
measure of certainty for all of these companies. So the next
step is an EO, which I expect will be forthcoming very soon.
Senator Blackburn. OK. Thank you for that. Let me move on
to the MOBILE NOW Act and that implementation. You had
requested in your budget $9 million for the NTIA for spectrum
management. And MOBILE NOW has directed the NTIA to make an
additional 255 megahertz of spectrum available for commercial
services by 2022. So do you think you are going to be able to
meet that mandate?
And how are you moving forward with that plan to
incentivize Federal agencies to relinquish or share spectrum
with commercial entities?
Secretary Raimondo. Yes. Thank you for the question,
Senator. I will get back to you with the exact answer as to
when we think we will be able to meet the requirement. I will
make sure my staff follows up. With respect to your other
question, it relates to the discussion we had earlier. We are
in the process--what we really need is a Government wide
strategy as it relates to spectrum use. And my own views, we
have to be more--we in NTIA have to be more aggressive at that
table and we have to have more creative uses of, for example,
spectrum sharing. So instead of taking this in a piecemeal
fashion, we are endeavoring to work with the FCC to have a
nationwide strategy, including, you know, freeing up more
spectrum, which propels innovation, right. Like, fundamentally,
the reason we need to free up more spectrum is because whether
it is, you know, cloud computing, artificial intelligence,
quantum, it all--any wireless innovation requires more
spectrum, and we want to be able to compete with China and
every other global economy.
Senator Blackburn. Well, the last time I looked, the last
any type of audit on a national spectrum strategy, we had a
report in 2020 and we have had nothing since. So I appreciate
your bringing that up. I do have a supply chain question, Madam
Chairman. I will submit that for the record. Thank you.
The Chair. Thank you. Senator Peters, are you available? Or
Senator Tester? If not, Senator Young, are you available? If
not, Senator Fischer.
STATEMENT OF HON. DEB FISCHER,
U.S. SENATOR FROM NEBRASKA
Senator Fischer. Thank you, Madam Chairman. And thank you
to my colleagues for not being available.
[Laughter.]
Senator Fischer. Thank you for being here, Madam Secretary.
It is nice to see you. Following passage of the bipartisan
infrastructure law, today's hearing is an important opportunity
to talk with you about the funding that NTIA will be
distributing for broadband deployment.
As part of that law, I added an amendment to establish a
broadband deployment locations map. This mapping tool will
create more oversight so that Government funded broadband
projects can be looked at clearly in one place. The amendment
passed unanimously, showing lawmakers are united in their
desire to avoid overbuilding and ensure transparency in
broadband funding.
But the success of this mapping tool will hinge on
cooperation with the FCC from all Federal agencies that provide
funding for broadband deployment. In March, Senator Cortez
Masto joined me in writing to agencies, including NTIA, to
check up on the progress that has been made so far.
Though I did hear back from the FCC by the date requested,
I still have not heard back from NTIA. Do you know the status
of the agency's response to that letter that we sent?
Secretary Raimondo. I do not. And I apologize that we
didn't make the deadline, and I will look into it and get back
to you right away. I can tell you, we are collaborating very
closely with the FCC. In fact, Alan Davidson, who runs NTIA,
has a weekly meeting with the chairwoman and we are
coordinating with them.
The maps are critical, and we are not going to let the
money go out the door until we have the maps. And precisely--
especially in a state like yours, they are incredibly
important. So I support the spirit of the effort fully, and I
will get you a better answer to your question.
Senator Fischer. Great. I appreciate that, thank you. I
know how important it is to have that cooperation so that all
the different players in this can uphold their responsibilities
under the law. We want to make sure that we can maximize the
broadband infrastructure funding so that all Americans can be
reached by this.
I would ask you, you testified before the Senate
Appropriations Committee in February, and I appreciated that
you did recognize the importance of expanding broadband
networks to unserved areas first, as the law requires. And I
know there have been many comments on this, but I don't think
it can be understated.
However, at that time, you did add that, ``this doesn't
mean that some of the money won't go to places that already
have coverage,'' and that competition is not a bad thing, which
you stressed again today with competition.
To me, that seems like two conflicting sentiments there.
Can you clarify what you mean by this and how do you square the
two? I am very, very concerned that the focus has to be on
unserved areas first.
Secretary Raimondo. Yes. And I agree with you, and the
statute is clear, right. Unserved first. Unserved, underserved.
The--I think what I was trying to say is every state is
different. And for that reason, the way we are implementing
this program is we are requiring every state to submit to us
their State plan.
Now, in a state like Rhode Island, for example, there is no
unserved. Everyone is served, and they are automatically
receiving $100 million. So by definition, there will be some
money spent and everyone is already served. Now, in your State,
obviously that will not be the case. So the priority is crystal
clear, unserved first.
When we are done with this, it is our goal, ambition, and
intent that every single American on a rural land, on tribal
land, an urban land, has high quality, high speed broadband
that they can afford. We do promote competition because
competition does reduce prices, which is good for the consumer.
But I don't know how else to say it.
I mean, we are not going to overbuild. We don't want to
overbuild, right. But what I have learned in the past year
especially, is you cannot overestimate the differences in every
community. And so to account for that, we are going to work
very closely with Governors and states.
And I guess I can just assure you that in your state, at
the end of this, everyone unserved will be served.
Senator Fischer. Can you refresh my memory, will you be
reviewing every state plan? Is it required that the Department
has to approve every state plan? How does that work with it?
Secretary Raimondo. Yes. Yes, so the way it works is, we
are hoping to get the NOFO out May 16. We are working hard
toward that. That will go out. Every state then has to give us
their intention to participate. Once they get--we get that
letter, we send them a planning grant.
And these that plan a grant to a State plan. They are not
going to get any more money until we approve of the plan. And
there will be an aggressive back and forth, using the maps,
pushing on affordability, et cetera, and then we will approve
the plan to make sure everyone is served and then the money
will flow.
Senator Fischer. Great. Thank you very much. Thank you,
Madam Chair.
The Chair. I don't know if either Peters or Tester are
online. If not, we are going to go to Senator Scott.
STATEMENT OF HON. RICK SCOTT,
U.S. SENATOR FROM FLORIDA
Senator Scott. Chair Cantwell, I want to thank you hosting
this important hearing today. I have been calling on the
Secretary of Commerce to come testify since last fall. So I
think--I have been pretty disappointed that we haven't heard
answers from the American--to the American people on President
Biden's disastrous policies that have caused severely crippling
supply chains crises and really hurt people with inflation,
which, as you know, hurts the poorest support of families.
So 6 months of silence, I think doesn't make sense. I don't
understand why the Secretary of Commerce wouldn't want to come
here and talk about this, but let's look at the numbers. The
last time you testified was January of last year, I think it
was 16 months ago inflation was 1.4 percent.
Today, inflation has increased fivefold to 8.5 percent, a
40 year high, with--it doesn't appear to be any sign of slowing
down or any plans for the Biden Administration to fix anything,
and I haven't seen any fixes. Every day American families are
seeing the crisis when they go buy anything they want to buy.
In my state, families are worried about putting food on the
table, one. The price of food to get the food, to make sure
they get their pharmaceuticals, and make sure companies have
the products they need to be able to survive in their business
at a price that they can afford to sell.
I have heard from business leaders all across my state
about the impacts the supply chain inflation is having on their
business, and many businesses have had to close. So as
Secretary of Commerce, you play a leading role in dealing with
the supply chain and with inflation.
As far as I can tell, I haven't seen a plan that has come
out of the Commerce Department of how you are going to deal
with this either supply chain crisis or the unbelievable
inflation we are seeing now. So I think about when I was
Governor of Florida, we had hurricanes. You were the Governor
when you have a problem, you have to get everybody together and
you have to solve it.
And I just haven't seen that out of the either Commerce or
Homeland Security--there was a report in February that there
was a supply chain report come out of Commerce and DHS. It had
a lot of things about spending more money. I have never seen
that spending more money ever reduced inflation.
So I guess here is my questions, what tangible action are
you taking right now that is going to reduce inflation, which
is caused by supply chain crisis? When will we start seeing a
reduction in the inflation?
And three, we have watched what has happened with Ukraine,
with Russia, where Americans are saying we can't do business
with Russia anymore. Is the Commerce Department ready to focus
on decoupling from China when China invades Taiwan? But thank
you for being here.
Secretary Raimondo. Well, thank you, Senator, for your
questions. And it is my pleasure to be here today. And, of
course, I am always available to you any time. Look, we
recognize that inflation is a challenge and Americans are
seeing it every day. And that is exactly why the President, and
our Administration is doing everything we possibly can to do
that. This Administration clearly did not cause the inflation.
The inflation was caused by incredible demand post-COVID,
supply chain disruptions from COVID, and Putin's war
exacerbating it all. And actually, if you look at Europe, they
are seeing similar, if not higher inflation, but much slower
economic growth. And this Administration, our job growth is
unprecedented. So to your point, what are we doing, what am I
doing? I am primarily focused on the chip crisis.
You know, chips, semiconductor chips are in everything. And
we are--I have done--I have used the Defense Production Act to
do a survey of all data from over 150 chip companies. Our
convenings with chip companies have led to partnerships. For
example, GlobalFoundries has partnered with Ford and GM to
reduce that problem.
I have set--we have set up an early alert system so that if
there is, say, a semiconductor packaging factory that goes down
in Malaysia, they can let the Commerce Department know.
Commerce set that up and runs that. We are--I stood up a supply
chain task force which has 20 plus leaders in industry. I mean,
supply chains are run by the private sector. So what we are
doing is increasing transparency----
Senator Scott. Excuse me a second. I don't have a lot of
time.
Secretary Raimondo. Yes, go ahead.
Senator Scott. When do we--when will inflation start going
down?
Secretary Raimondo. Well, that would be a question for
Chairman Powell. As you know, the Fed handles monetary policy
and has the biggest tools around that, and he has indicated he
is going to start to take action. So I think, you know, soon--
this year.
Senator Scott. So Government--you know, the Government
spending has anything to do with inflation? And permitting and
regulatory environment has anything to do with inflation? It is
all with the Federal Reserve does?
Secretary Raimondo. The Federal Reserve and its monetary
policy by far has a bigger impact on inflation. Certainly
Government spending has an effect on that. But the Government
spending that we are doing and that you participated in with
the infrastructure bill, for example, is investment. It is
productivity enhancing investment, which I don't believe
meaningfully increases inflation.
Senator Scott. Thank you, Chair.
The Chair. Thank you. Senator Markey.
STATEMENT OF HON. EDWARD MARKEY,
U.S. SENATOR FROM MASSACHUSETTS
Senator Markey. Thank you, Madam Chair. Great job, Madam
Secretary. The National Oceanic and Atmospheric
Administration's National Integrated Heat Health Information
System provides lifesaving guidance and research to protect
communities from extreme heat, which has recently killed more
Americans than extreme weather events like hurricanes and
floods. We know that extreme heat will only get worse as the
planet continues to warm from human caused climate change.
My Preventing Heat Illness and Deaths Act would support the
great work already happening to address the problem. Congress
should pass my bill and increase funding for extreme heat
research and mitigation. Just $2 million a year in additional
funding could protect hundreds of thousands more Americans from
the life threatening risk of extreme heat.
Secretary Raimondo, do you support increased funding for
extreme heat research and prevention, which could turn up the
temperature on our work to save lives by turning down the
temperature in our communities?
Secretary Raimondo. I do. I do. And I do know that this is
a priority for NOAA, and we are working in the interagency on
this issue.
Senator Markey. Thank you. In his State of the Union
address, President Biden called for a ban on targeted ads to
kids. Apps should never be allowed to track a 10-year old's
browsing history, bombard her with marketing based on that
data.
The Children and Teens Online Privacy Protection Act, which
I have introduced, would ban targeted ads to users under the
age of 13. Madam Secretary, the Commerce Department plays an
important role in developing our country's technology policies.
Do you agree that Congress should heed President Biden's call
and pass my bill to ban targeted ads to children?
Secretary Raimondo. Yes, I do. As I said, you know, we
support fully in the Administration the goals of your bill. And
as you said earlier, as a mother of two teenagers, I see it
every day. It is real, it is destructive, and we have to do
more. It is also why the President in his unity agenda is
calling for increased funding for mental health and make sure
that kids can access that.
Senator Markey. Yes, but what I am becoming increasingly
concerned about is that we are just falling further and further
behind the European Union in terms of its response to the
impact which the Internet, social media have on the children in
our country. And in increasingly, we just have second rate
protections for the children in our country.
And it is just a further example of how the Europeans look
at it in its totality. Yes, the Internet provides enormous
economic opportunities on the one hand, but on the other hand,
there is a Dickensian negative impact that it simultaneously is
having, especially on the children in our country.
So to the extent to which this issue just continues to sit
there, the warning signs are just given to us by the headlines
in newspapers every single day about the mental health
condition of young people in our country right now. Could you
talk a little bit about that and the interrelationship between
social media and the mental health of the children in our
country and why more protections are needed?
Secretary Raimondo. Well, as you say--I am not an expert in
this, I should clarify. But as you say, the data is clear that
mental illness and anxiety and depression among teens is
through the roof. I should say parenthetically, I saw this as
Governor.
I began a mental health effort in Rhode Island called, ``It
Is Okay Not To Be Okay,'' to try to eliminate the stigma. And
it is clear that social media is related to that. So as I said
earlier, I support the goals of your bill. I welcome an
opportunity to work with you on this, Senator, because I do
agree with you that more needs to be done to protect our kids.
Senator Markey. Thank you. And the NTIA got $48 billion for
broadband. And I just think it is just such an important
opportunity to use that funding in order to promote
affordability, promote competition, and to ensure that the
Internet is free and open. And I know you are doing a great job
on this, but the faster we move it, I think is the better off
our country is going to be.
Secretary Raimondo. I understand. As you say, we are
working like crazy on this. The big component, which is called
the BEAD Program, we hope to have the notice of funding
opportunity out May 16th. And I very much look forward to
working with you and your Governor to get this done in your
state.
Senator Markey. Great. Thank you.
The Chair. Thank you, Senator Capito.
STATEMENT OF HON. SHELLEY MOORE CAPITO,
U.S. SENATOR FROM WEST VIRGINIA
Senator Capito. Thank you, Madam Chair. And thank you for
being here with us, Madam Secretary. Really appreciate it. You
know, my great interest on the broadband deployment, we have
talked about this several times. So just kind of quick
questions. I heard you mention May 16th, you had testified
before that that is going to be the day that you are going to
be soliciting or beginning to solicit State plans. Is that
still----
Secretary Raimondo. Yes, that is the plan. We are charging
toward that day.
Senator Capito. OK. You had also mention in previous
testimony that each state is going to have a representative
from NTIA that is going to help them move--how are you doing on
that? Have you appointed those? Are you still sticking with
that original plan?
Secretary Raimondo. Yes, we are still sticking with that
original plan. The way I want to run this is that every state
has a person they can call. So if there is any issue in West
Virginia, you know you call such and such.
Senator Capito. Right.
Secretary Raimondo. So we haven't yet recruited everyone.
We are in the process. We are aggressively hiring. We are more
than halfway there, I can tell you. And we are like onboarding
people every day.
Senator Capito. Well, we are anxious for that as you as you
can imagine. We have talked too about the different conflicts
between FCC's RDOF, USDA's Reconnect, some RC programs and then
NTIA programs. We are running into a bit of an issue with this
on the coordination factor.
Can you go through an RDOF region if you are connecting two
different, say, counties? How are you doing on that court--you
said you were going to put together a committee to work on
this. I mean, we are still not getting good answers here.
Secretary Raimondo. Yes, I appreciate the question. I was
in South Carolina, Friday with Whip Clyburn and I met with
community people and the same thing came up, you know, how do
we do this? So I think that at our level, you know, we are--the
White House is coordinating an interagency so that Mitch
Landrieu gets us all together on a regular basis and our teams
together.
But the truth of it is, I think the most impactful thing is
that every state, when they put together their state plan, we
are requiring them to detail in their State plan how they are
going to use all of their Federal money.
So, for example, in the West Virginia State plan, they are
going to have to show us on paper how they plan to use RDOF,
how they plan to use USDA, how they plan to use tribal. And we
are hoping that by putting it all in one place, it will enable
us to better coordinate.
Senator Capito. Yes, so here is the problem. I know our
RDOF is not your problem, but, you know, RDOF has got a 5-year
window. So if the whole program shows out, then everybody is
going to be deployed from that program, which we know is not
going to happen. We know at some point the providers are going
to send the money back. They couldn't do it or pay the fine or
whatever.
We are going to be 5 years down the road and realize, you
know, we should have worked better together. I would like to
see, I mean I would hope that you would have a carve out for
the broadband deployment area and not have this just be a
general coordinating committee. Because if you are trying to
coordinate----
Secretary Raimondo. Oh, absolutely, yes.
Senator Capito.--transportation, water, and all this. And,
you know, it is never going to get down to the detail it needs
to. So I highly--this is a big issue. And, you know, we are--
luckily, well luckily and unluckily, we are eligible for a lot
of funding because we still have a lot of unserved and
underserved.
But you can see if the conflicts come in, at the end of it,
we don't want to say, wow, we are still not there yet. So
anything we can do on that to work with you. We have a lot of
good data. We would like to do that. Inflation of prices, what
kind of impact is that going to have on the ability to deploy?
What are you seeing there? Because I am hearing this
everywhere.
Secretary Raimondo. Yes. By the way, on the first thing, I
should have clarified, these are broadband specific----
Senator Capito. OK.
Secretary Raimondo.--meetings that we had, just broadband.
Second, listen, I agree with you. It is among the greatest
challenges of this. And I think there is no one answer. It is
constant, obsessive communication, collaboration and working
with the team.
So I will follow up with you. We need to increase domestic
supply. Like the bottom--and I am working with domestic
producers of fiber and cable. We need to increase domestic
supply. That is the way----
Senator Capito. To get the price down.
Secretary Raimondo. Yes, exactly. Yes, sorry. Right.
Listen, this is economics 101, because we are spending all this
money for broadband deployment, demand is going to be higher
for all of this equipment, and so we need to increase supply.
And there are buy American provisions in the statute, so I
am working very aggressively with--there is only one, Corning
is the one producer in the U.S., and we are meeting with them
and with the ISPs to try to use the occasion of this increased
demand to get them to increase domestic supply, so we create
jobs and prices don't go up.
Senator Capito. Well, the good news for us on Corning is
they have a great legacy in the state of West Virginia where
they are in the glassmaking business. So we will follow up with
them.
Secretary Raimondo. Maybe we get more jobs out of this and
lower price.
Senator Capito. That would be good. I do have a question on
EDA, but I will submit that for the record. And thank you.
The Chair. Thank you, Senator Capito. Senator Tester.
STATEMENT OF HON. JON TESTER,
U.S. SENATOR FROM MONTANA
Senator Tester. Yes. Thank you, Madam Chair. And I want to
thank Secretary Raimondo for being here today. Look, the
pandemic has shown us that Internet access is essential to
everyday life. Internet connectivity has always been a major
challenge in rural states like Montana.
According to many of the surveys that are out there and the
reports, Montana is consistently dead last or almost dead last
out of the 50 states in terms of Internet service. Hundreds of
thousands of Montanans still lack reliable and affordable
access to the Internet in the year of 2022.
As you are well aware, the bipartisan infrastructure
package that I led was with my colleagues is bringing about $65
billion to states to close the digital divide. This
infrastructure package tasked NTIA with distributing the
majority of that funding, nearly $50 billion in broadband
grants to states so that they can finally meet Internet access
in unserved areas like rural and frontier communities.
We are literally at a pivotal moment in time. We need to
get this right. I want to make sure that NTIA has the resources
to get this funding out the door in time--in a timely and
efficient manner, to close the digital divide, particularly in
rural states like mine. So, Secretary Raimondo, does NTIA have
the resources it needs to get the job done?
Secretary Raimondo. Yes, I believe we do. Thank you for
your leadership in passing the bipartisan infrastructure law. I
don't--resources are not our challenge right now. The
discussion I just had with Senator Capito, this is an enormous
lift. It is a coordination lift.
What I can use from Members of Congress is like information
from the ground. Work with us, work with your Governor, help us
to coordinate this on the ground so that we are effective.
Senator Tester. So can you tell me how NTIA is ramping up?
How is the agency staffing up, structuring its teams to
effectively engage with what you said, each state with tailored
assistance?
Secretary Raimondo. Yes. Thank you. So we are in the
process of hiring over 100 people. We have already onboarded
dozens of people. We are planning to have a core team kind of
at headquarters to do outreach, which is a huge piece of this.
The outreach and stakeholder engagement. I think this is going
to rise and fall based upon the quality of our stakeholder
engagement.
So we have a lot of people doing that. We plan to have a
single point person for every state so that we can, you know,
have that coordination. We are also adding technical expertise.
If we are going to go toe to toe with providers and protect
taxpayers, we need the best and the brightest who know telecom
and broadband.
So we are hiring technical expertise. We are hiring
lawyers. And like you said, when it is all said and done, we
are going to have to take on well over 100 people to get this
done.
Senator Tester. OK. So each state will have a point person.
Will they be located in that state or somewhere else? Not that
that is important if they have good broadband service there.
Secretary Raimondo. Most of them will not be in D.C.. They
will either be in your state or in that region.
Senator Tester. OK. And when do you anticipate they will be
available for the states to contact?
Secretary Raimondo. I will get back to you on when your
regions person will be there. But we are--these people are
coming on a rolling basis. And right now, we are all hands on
deck to get the NOFO out on May 16. And then over the summer,
we are going to start to increase, you know, the pace that we
onboard these people.
Senator Tester. OK. So what about Indian Country? How are
you--you are going to depend upon the state to do the outreach
there, or are you guys going to have a special person for the
Native Americans?
Secretary Raimondo. Yes. Thank you for asking that
question. We are going to--we have a whole team for tribal
outreach. We did a consultation in January. And I should say
this is very important. We have a whole team to do technical
assistance for the tribes, and we have learned that they are
going to require a great deal of technical assistance.
So, for example, in the first tribal monies that we put
out, 73 percent of the submissions required our technical
assistance to do some kind of curing. So we are not saying no
to the tribes if their applications aren't up to snuff. We are
working with them with technical assistance to improve the
quality of their application so that we can get the money out
the door.
Granted, it takes a little longer. But we have stood up a
team, here and regionally, just to work with the tribes so we
can provide them the assistance they need, especially the ones
that are smaller and don't have the resources. We are deadly
serious about making sure that everyone who lives on our tribal
land has access to broadband at the end of our work.
Senator Tester. I appreciate that. The consultation was
done via Zoom, I would assume.
Secretary Raimondo. Yes.
Senator Tester. And what kind of participation did you
have? Do you know offhand?
Secretary Raimondo. I got to--I will get back to you. I
don't know the exact number. I know it was--we were overwhelmed
with the response. I participated.
We had a huge response. I should say, all of our
consultations, our stakeholder outreach, we are routinely--in
one of them we had over 1,000 people participate. In one of
them, 700 people. I will get you the exact number on the
tribal, but I know it was robust.
Senator Tester. That is really not important. What is
important is that you did have a broad representation of a
large land based tribes----
Secretary Raimondo. Yes, yes. That I can assure you, yes.
Senator Tester. OK, good. Just the last thing is the
timeline for you sending money out the door, have you set any
timelines for that?
Secretary Raimondo. Well, like I said, we want to--the NOFO
will be on the street May 16. Every state then has to give us a
letter of intent, their intention to participate. We will very
quickly, within 30 days, get them planning money out the door.
And then, honestly, it depends on the FCC maps and how quickly
we have them before we can get the rest of the money out the
door.
Senator Tester. Thank you. I really appreciate your work. I
appreciate your commonsense attitude and work ethic. And I know
that you are going to be also making sure that there is
adequate oversight on these monies to make sure that we are
getting the bang for the buck. Thank you, Madam Chair. And
thank you, Secretary Raimondo.
The Chair. Thank you. On--I don't know if Senator Young is
available. I know Senator Lee was here. I don't know if he is
available remotely. If not, we will go to Senator Rosen.
STATEMENT OF HON. JACKY ROSEN,
U.S. SENATOR FROM NEVADA
Senator Rosen. Thank you, Chair Cantwell. Ranking Member
Wicker is not here, but I thank him as well. Secretary
Raimondo, thank you for being here today. I am so glad you have
been traveling, as I hear you saying that setting up, talking
to folks about increasing our domestic supply chain and working
on manufacturing and all these roundtables.
And I hope you plan to come to Nevada, because if you would
come to Nevada and listen to what we are concerned about, this
is what we would tell you, that the solar industry is
incredibly important to my home state of Nevada, where we have
the most solar jobs per capita in the entire country.
I am extremely disappointed with the Administration's
extension of Section 201 tariffs on imported solar products.
And I also have very serious concerns with the Commerce
Department's recent decision to initiate an investigation into
solar panel imports. Already as a result of Commerce's
decision, industry surveys indicate over 80 percent of U.S.
solar companies report being notified of canceled or delayed
panels supply.
Without a reliable and cost effective source of panels--and
I can tell you this is hitting New Mexico here, I have Senator
Lujan next to me. Without a reliable source, existing and
proposed solar projects could come to a halt. This will
jeopardize tens of thousands of good paying American solar
jobs, could raise energy prices for consumers, and also
undermines the Administration's clean energy climate goals.
So, Secretary Raimondo, I understand your Department has
until August 29 to make a preliminary determination on this
inquiry. However, the investigation is already negatively
impacting U.S. solar companies, and the longer the situation
persists, the more severe the damage will be. Can you--will you
consider making an expedited preliminary determination in this
matter?
Secretary Raimondo. Thank you for your question, Senator.
You and I have talked about this. I share your concern.
Senator Rosen. We haven't talked about this.
Secretary Raimondo. Well, the issue generally, sorry. The
issue generally, and you have expressed your concern to me
about how important these solar jobs are. And, of course, the
Administration is fully supportive of enhancing the solar
industry and doing whatever we can to meet----
Senator Rosen. I have limited time.
Secretary Raimondo. Yes, go ahead.
Senator Rosen. Can you commit to making a preliminary--an
expedited, preliminary determination?
Secretary Raimondo. Here is what I will commit to. We are
required by statute--my hands are very tied here. I am required
by statute to investigate a claim that companies operating in
other countries are trying to circumvent the duties, and I am
required by statute to have a fulsome investigation. What I
will commit to is moving as fast as possible, consistent with
the statute, to conduct that investigation. I understand you
need certainty, but I have to follow the statute.
Senator Rosen. That is fine. OK, let me ask you the next
question then. Because there are constructive policy options to
spur our domestic solar manufacturing industry, other than
imposing additional tariffs on U.S. companies.
So can you tell me what steps the Commerce Department is
taking to support--you are talking about increasing American
manufacturing, helping our supply chain, creating jobs? If we
lose these jobs, they won't come back. So what are you planning
to help us do for domestic solar manufacturing in the next
fiscal year?
Secretary Raimondo. Yes, a couple of things. One, the
budget calls for increased funding to NIST, and some of that
money will be used for exactly this, research on solar capture,
solar storing, solar----
Senator Rosen. None for manufacturing----
Secretary Raimondo.--technology. And then also it calls for
increased funding for MEPs and there will be a specific focus
on clean energy, clean technology, and helping small clean tech
companies in the MEP program, and also increases in supply
chain. And we will have a great focus on the solar supply chain
if we are going to be successful in receiving the extra supply
chain money.
Senator Rosen. Well, these tariffs are hurting the supply
chain. It is hurting the solar industry. I am afraid it's not
going to come back. But let me move quickly about travel and
tourism. I am going to submit this for the record, but we have
our omnibus Travel and Tourism Act with ranking member Scott.
And I just thought if you had a few moments, you might talk
about the importance of a coordinated whole of Government
approach to improving our global competitiveness for tourism
domestically. Our omnibus would create an undersecretary in
Department of Commerce to oversee domestic tourism, help us
through the pandemic, and have a domestic strategy.
Secretary Raimondo. Which I would support. And we are
trying like--even within Commerce, I have tried to increase, or
have increased coordination between EDA and ITA. We do need
what you say, which is full coordination. As I said earlier, we
are still a million and a half jobs in travel and tourism below
where we were pre-pandemic. We have not fully recovered. You
see that in your state. So, yes, I would fully support that.
Senator Rosen. Thank you. I appreciate it. My time is up,
Madam Chair.
The Chair. Thank you. I have called, but I am not going to
keep calling out other people unless I see them on the screen.
So Senator Cruz will be next. Followed by Senator Lujan.
STATEMENT OF HON. TED CRUZ,
U.S. SENATOR FROM TEXAS
Senator Cruz. Thank you, Madam Chair. Madam Secretary,
welcome.
Secretary Raimondo. Morning.
Senator Cruz. For a long time, I have been very concerned
about the Biden Administration's foreign policy. Foreign policy
that consistently alienates our friends and shows weakness and
appeasement to our enemies. Now the Commerce Department,
typically your mandate does not focus primarily on foreign
policy.
But I will say recently that has been less the case. If you
look at China, and your confirmation hearing focused quite a
bit on your willingness to stand up to communist China, and on
the repeated decisions from the Biden Administration is to show
weakness to communist China.
The eyes of the world are on Taiwan. Under this
Administration, Vladimir Putin has invaded Ukraine. He has done
so in significant part because of, I believe, this
Administration's weakness on foreign policy. And Xi in China is
watching very carefully, and quite openly contemplating
invading Taiwan. So I was deeply concerned when the Commerce
Department put out a press release that referred to Taipei as
Chinese Taipei.
Now that is not a mild oversight. That is not a typo. That
is not a mistake. Chinese Taipei is a term of propaganda pushed
aggressively by the Chinese Communist Party, because they
insist Taiwan is not a country. Taiwan is not a separate
entity. It is instead part of communist China.
And for the Commerce Department to embrace the Chinese
communist government's language about Taiwan, to put it in a
formal press release, it both undermines our ally, Taiwan, and
it emboldens communist China. So my question is, why would the
Commerce Department refer to Taipei as Chinese Taipei?
Secretary Raimondo. Yes. Thank you, Senator, for your
question. And by the way, the Administration, including I are
clear eyed about the threats to China--threats that China poses
to us. And I have been very strong in my tenure as it relates
to China. They--Taiwan signed the declaration. Their signatory
line was as Chinese Taipei. So this reflects no change in
policy. It is how they chose to sign the declaration, and that
is why it appeared that way in the press release.
Senator Cruz. All right. Let's turn to a different example.
It is not just Taiwan that this Administration undermines. It
is our allies across the globe. When you turn to Israel, on
April 16, 2022, Vice President Kamala Harris held a Passover
Seder at the Vice President's residence. They served kosher
wine from the Zagat Winery, located in Samaria, near Jerusalem.
This was apparently a huge scandal among the Biden
Administration's radical leftist base. Which loudly and
immediately complained.
So the Administration ran to Twitter, and a senior adviser
to the Vice President posted this: ``The wine served at the
Seder was in no way intended to be an expression of policy.''
Now that is a pretty big deal. The issue of labeling Israeli
goods and what goods are made in areas of Israel goes back
decades. It goes to the core of Israel's sovereignty over its
territories. The Obama Administration reissued a labeling order
to prevent goods made in Judea and Samaria from being labeled
as Israeli.
So my question is simple, the Vice President staff said
serving wine from an Israeli winery located in Samaria was in
no way intended to be an expression of policy. Jurisdiction for
this is within the Commerce Department.
What is the Administration's policy with regards to the
labeling and the import of goods from Israel and its
territories?
Secretary Raimondo. I am going to have to get back to you
on that. And this is--I was not aware of this, but I will
follow up with you.
Senator Cruz. And I will point out that in the Commerce
Department, the Office of Anti-Boycott Compliance answers to
you. Does this winery in Samaria count for you as an Israeli
company and would participation in a State boycott targeting
requires scrutiny from the Office of Anti-Boycott Compliance?
Secretary Raimondo. Yes. Like I said, let me look into this
and I will be back to you with the details.
Senator Cruz. Well, I look forward to your answer. Thank
you.
Secretary Raimondo. Thank you.
The Chair. Senator Peters.
STATEMENT OF HON. GARY PETERS,
U.S. SENATOR FROM MICHIGAN
Senator Peters. Thank you, Madam Chair. And Secretary
Raimondo, good to see you once again. Thank you for being here
today. Secretary Raimondo, I want to start talking about the
CHIPS Act, which we have before us right now. And I believe it
is essential that we fund the CHIPS Act so we can grow good
paying jobs here in America, designed or involved in designing
and making semiconductor chips but funding the CHIPS Act isn't
just about creating jobs in the semiconductor industry.
It is about supporting all the jobs that depend on those
semiconductor chips. And in a modern economy, chips play a
vital role, certainly in many, many different areas, but there
is no better example in my mind than the auto industry.
In the 1970s, some cars just had a handful of chips. But
now, a few decades later, the modern cars can contain up to
10,000 semiconductor chips in every car that handles everything
from safety features to telematics to entertainment systems.
And certainly that explains why the recent chip shortage has
hurt auto production, as I know you are very well aware, along
with many workers and families whose livelihoods are impacted
by it.
It is bad for the whole economy and the ripple effects on
the auto industry go through the whole economy. And that is why
I think when we think about policies to support domestic
semiconductor production, we must also ensure that we are
addressing the needs of our economy and National Security.
Senator Stabenow and I led legislation, which is passed the
Senate and the House, to dedicate $2 billion in CHIPS Act
incentives to boost domestic production of semiconductor chips
required for auto productions, referred to as mature chips, the
kinds of chips that are necessary for other manufacturers, not
just the auto industry, but things like washing machines and
everyday appliances.
So my question for you, Madam Secretary, is do you support
a proposal to dedicate $2 billion in the CHIPS Act incentives
to growing in a domestic production of mature semiconductor
technologies in the United States?
And if Congress does indeed fund the CHIPS Act, which I
hope we will do soon, will you commit to ensuring that the
Department implements these funds in consultation with
industries and workers, particularly in industries like the
auto industry? If you could talk about that, I would appreciate
it.
Secretary Raimondo. Nice to see you, Senator. Yes, the
answer is yes and yes. I would say it isn't just the auto
industry. The medical device industry, for example, is a huge
consumer of these ``legacy chips,'' mature feature rich chips.
And in the recent RFI that we did, we found that this is where
the shortage is. So, yes, we would support it. And yes, we
absolutely will implement it in coordination with industry and
with you.
Senator Peters. Well, I appreciate that. Thank you, Madam
Secretary. But one area that I have been particularly focused
on is making sure that our supply chains are resilient so that
we can expand domestic production of these chips. And in
December, I introduced the Investing in Domestic Semiconductor
Manufacturing Act, along with several of my colleagues,
including many on this committee.
The bill would clarify provisions of the CHIPS Act to
ensure that upstream suppliers are eligible for incentives to
grow. These are suppliers that make chip manufacturing possible
by providing the necessary materials and the manufacturing
equipment necessary to produce these chips.
Indeed, I believe your Department's analysis of
semiconductor supply chains discussed the important role of
these upstream suppliers and the role that they play in
supporting our national goals. For all these reasons, the House
included the language in the competitiveness package in the
COMPETES Act.
And now as we go to Conference, and I have been appointed
as one of the conferees for negotiations, we are going to be
fighting to make sure that that proposal gets put into the
final product.
So my question to you, Madam Secretary, is do you agree
that domestic semiconductor production will be at risk if we
fail to adequately support upstream suppliers that actually
facilitate chip manufacturing?
Secretary Raimondo. Absolutely. There is no doubt of that.
I would be remiss if I didn't say and implore you and your
colleagues to act with urgency through that Conference process.
As we discussed earlier, there is a very real risk of waiting
here, which is that these chip companies are going to be
expanding and they will expand in other countries if we don't
move quickly. So I am at your service to do whatever I can to
move that Conference quickly.
Senator Peters. Well, I appreciate that. And I think you
agree with the general proposal that we have that would ensure
that upstream suppliers are actually eligible for some of those
CHIPS Act incentives?
Secretary Raimondo. Yes.
Senator Peters. As we put that out, it is not just the
manufacturers themselves. It is that entire supply chain.
Secretary Raimondo. The whole supply chain.
Senator Peters. Great. Well, I appreciate that. Thank you
for your leadership on this issue as well. Appreciated you
coming out to Detroit not too long ago to dig deeper into the
issue of the auto industry. I know it is something you are
passionate about, and I appreciate your interest in Michigan as
well, so thank you for being here.
Secretary Raimondo. Thank you, Senator.
The Chair. Senator Lujan.
STATEMENT OF HON. BEN RAY LUJAN,
U.S. SENATOR FROM NEW MEXICO
Senator Lujan. Thank you, Chair Cantwell. Secretary
Raimondo, good to see you today. As you mentioned in your
opening statement, I want to thank you, you recognized the
importance of the Minority Business Development Agency,
something that was very important to our Chair, to the Ranking
Member, passed bipartisanly through the House and through the
Senate.
And it is great that for the first time in 50 years, we
finally have what is now, I hope that will forever be, a
permanent minority business development agency. And earlier
this month, we were very pleased that leadership from the
Department of Commerce was in Albuquerque, New Mexico, to open
up our business development center.
And so the question that I have is, in this particular
space, Secretary, yes or no, do you currently have the funding
to launch the Rural Business Center Program?
Secretary Raimondo. So first let say, great to see you
back, healthy, and in person. No, if you want the short answer.
The money that we are requesting, the $110 million, would be
enough to launch the rural business centers, which will be done
in partnership with minority serving institutions.
But currently, Fiscal Year 2022 appropriations only gave us
half of that and directed us to use the money to expand our
existing business centers. So we are going to be with that
money adding six new business centers. But we don't now have
the money to do rural, which is why we are asking for it in
this appropriation.
And the good news, I will tell you, is if we are successful
in getting the money we are asking for in this appropriation
bill, we have already been doing all of the outreach with the
minority serving institutions, so we would be ready to hit the
ground running to set up the rural centers.
Senator Lujan. I appreciate that. And I will do everything
I can with my colleagues on the Appropriations committee and
the staff over there to make sure this gets the attention that
it deserves. My follow up there is, in the absence of
additional resources for the program, what are you doing to
support the minority owned rural businesses now?
Secretary Raimondo. Well, currently we do serve them to the
best of our abilities with our existing business centers. And,
you know, I think we do a good job of that. But as you know
yourself, you need to be present in place in order to really do
this work. So we are increasing our efforts to rural America,
by the way, MEDA and EDA.
We are working very hard with EDA. But the truth of it is
we need the money to set up proper rural business centers with
minority serving institutions so we can be in the community and
meet the needs of the population.
Senator Lujan. Appreciate that. Well, I will work with my
colleagues, again, bipartisanly here. And this is an area of
great interest to many of us, so we will be looking. I hope
that once we secure that funding, that we are ready to roll and
that we are able to take some of that investment and get ready
for that as well.
Madam Secretary, one area that I talked to you quite a bit
is just with connectivity and following sort with many of my
colleagues that have asked questions today, will the funding
connect every family in New Mexico to affordable, reliable,
high speed broadband that is currently in the bipartisan
infrastructure bill, in addition to some of the benefits from
funding that was received in 2020 to NTIA?
Secretary Raimondo. Yes, that is certainly the plan. The
President has been crystal clear with me that anything less
than that will be unsatisfactory. We want to get to everyone,
and importantly, make sure that it is affordable.
And I am very serious about that because, again, I come
from a state where everyone has access to broadband, but if it
is $70, $80, $90 a month, it is not--you might as well not have
it, can't afford it. So yes is the answer. We are going to work
in the community to make sure there is ubiquity and
affordability.
Senator Lujan. Well, I very much appreciate that this is
the plan. The word that I have been given is that if there is
not enough funding here, that money will be found to connect
our state. And I will be working with everyone to ensure that
we are able to hit that goal. I very much support the plan, but
I want to see it done across the country and especially in hard
to connect states.
In another area, the programs that we have been able to
work forward or move forward included funding for 91 full time
jobs to support the broadband program, which Senator Tester
talked about. How many of those will be on the ground in our
states to ensure the program works in communities it is
intended to serve?
Secretary Raimondo. Yes. The majority will not be in D.C.
So I don't know exactly the number out of 91, but the intention
is that they not be in D.C., that they be around the country in
communities.
Senator Lujan. Great. I would like to follow up on that and
get some specifics, because what is floating around is that
none of them will be in the State. And so I think it is
important to correct that record, so I look forward to helping
you do that as well. So thank you for that clarification.
Secretary Raimondo. I can say on the record now, the
majority will not be in D.C., but we will get back to you with
the details.
Senator Lujan. I appreciate that. And I don't want to pick
on any of my colleagues but relying solely on states might work
in some of the larger ones where they have some of that
expertise, and even though it is still considered a hard to
connect state, places like California. And, you know, I often
compare New Mexico to Rhode Island, reminding everyone that out
there the highest hill is 800 feet. That is my backyard.
And in areas that we have big mountains and topography
challenges where 30 percent of the land is Federal land, it is
important to me that we all work with all the partners there.
So I have several other questions. I will submit them into the
record. But it is always an honor to see you and your team, and
very much appreciate working with you. Thank you, Chair
Cantwell.
The Chair. Thank you. Senator Sinema.
Secretary Raimondo. Thank you.
STATEMENT OF HON. KYRSTEN SINEMA,
U.S. SENATOR FROM ARIZONA
Senator Sinema. Well, thank you, Chair Cantwell. And thank
you to Secretary Raimondo for joining us today. You know, the
Department of Commerce has a crucial role to help Arizonans
address the supply chain crisis, support business growth, and
create good paying jobs.
The Department has a wide range of tools to assist with
many important Arizona priorities, such as addressing the
historic drought in the Southwest, increasing domestic
manufacturing of semiconductors, and expanding broadband to all
corners of our state.
I look forward to working with you, Secretary, and with my
colleagues on this committee to continue to advance these
efforts in a bipartisan manner to help Arizona families. My
first question is about fire season.
As you know, fire season has already begun in Arizona as
the Southwest experiences the most severe drought in 1,200
years. The tunnel fire North of Flagstaff has burned over
20,000 acres and the state of emergency has been declared in
Coconino County. The Crooks fire has burned over 6,000 acres
south of Prescott.
My thoughts are with my fellow Arizonans affected by these
disasters, and with our first responders, our wildland
firefighters, and their families as they work to contain these
wildfires. Arizonans rely on National Weather Service
predictions and National Oceanic and Atmospheric Administration
data to predict fire trajectory and determine impacts to
landscapes and human health.
It is important that NOAA and the Weather Service have the
resources and expertise needed to predict weather and drought
conditions. So, Secretary, the bipartisan infrastructure law
included $80 million for NOAA high performance computing
technology and $50 million for wildfire prediction, detection,
and forecasting.
How will these resources allow NOAA to improve drought and
wildfire prediction forecasting?
Secretary Raimondo. Thank you, Senator, for your question.
And I will say parenthetically, a number of Commerce employees
who were in Colorado were put out of their homes due to
wildfires. So we have had real time recent experience with
this.
The President's budget, the 2023 budget includes increases,
as you say, to help communities manage the impacts of drought.
We will be investing the money in better data and forecasting
models for wildfires. We are also expanding the work we do in
communities. We are putting a greater effort into helping
communities prepare their mitigation plans for wildfire.
And primarily, we are making big investments in the way we
collect data and do forecasting for droughts so they can be
more sophisticated. And of course, there is the link between,
you know, droughts and wildfires.
The last thing I will say is, in the budget, we are
requesting additional funds to broaden tribal engagement on
this issue of precipitation prediction to make sure that they
are fully engaged in the work we are doing around droughts and
wildfire prevention.
Senator Sinema. Thank you. As the Southwest continues to
face historic drought, we must use every available tool to
assess the length and severity of drought conditions. The
National Integrated Drought Information System has been helpful
to me when determining policy responses for drought stricken
areas, but I believe we can always improve.
How is the Department working to coordinate drought
response with other agencies, particularly with the Department
of Interior, Bureau of Reclamation, and USDA? And how can you
make this interagency process more effective so drought
mitigation policies can be targeted for maximum impact of
Federal dollars?
Secretary Raimondo. Yes, thank you. So I will tell you,
since I have been at this job for over a year, I am constantly
trying to find ways to make the interagency more effective and
efficient. And I would be--and I would welcome following up
with you on that. We have--we are very focused on this.
And again, in our Commerce family, like a dozen people were
rendered homeless because of wildfires, which has given us a
new sense of urgency. So NOAA is responsible for the data and
the prediction analytics. And as I say, we are working with
communities.
We are working, I think, hand-in-glove with Interior, with
USDA, trying to maximize the impact. But again, I would welcome
any ideas that you have on how we could do an increasingly
better job.
Senator Sinema. Thank you, Secretary. You know, Arizona is
a national leader in semiconductor manufacturing and in
research, development, and innovation, including at our State
universities. The semiconductor industry currently employs over
20,000 Arizonans.
I was proud to be original co-sponsor of the Chips for
America Act to restore America's leadership in semiconductor
manufacturing, which is crucial for both our economic and
National Security. In response to the CHIPS Act, we have seen
both Intel and TSMC announce significant investments in Arizona
manufacturing.
Now, the Senate passed its competition bill last May, and I
look forward to Congress finishing its job and getting this
competition bill to the President's desk, with all the funding
for chips grant included.
But all the stakeholders in Arizona, from our manufacturers
and suppliers to our research universities, our local
Government leaders are eager for this funding to flow. In
anticipation of our competition bill becoming law, what is the
Department doing right now to prepare? And how long until all
this money will get out the door after passage?
Secretary Raimondo. Yes. Thank you, Senator, and thank you
for your leadership on that. As you say, Arizona has a lot at
stake here. I want to be crystal clear about this, we cannot do
anything unless and until Congress passes the law, gets it to
the President's desk. So we have to put our shoulder to the
grindstone in this conference.
We cannot wait. We cannot delay. Other countries aren't
waiting, and we have to get this to the President's desk. For
our part, we are already hard at work. We are doing a huge
amount of stakeholder engagement. We have just recently issued
a request for information from industry to try to learn where
the shortage is, how can we work with them. We have created an
internal organizational chart to know, you know, where this
will live, who we need to hire. We will be able to hit the
ground running.
Nothing is going to happen until Congress does its job and
passes the bipartisan legislation. So I will do anything I can
to help with that.
Senator Sinema. Thank you. Thank you, Madam Chairman.
The Chair. Thank you. Senator Young.
STATEMENT OF HON. TODD YOUNG,
U.S. SENATOR FROM INDIANA
Senator Young. Good to see you, Secretary Raimondo.
Secretary Raimondo. Hello.
Senator Young. Thanks so much for your leadership. American
leadership in science and technology, especially the emerging
technologies that will dominate the 21st century, is vital to
both the future of the American economy and to our
competitiveness with China. I want to thank you for your
significant efforts thus far to ensure that USICA advances
through the process.
It is now, as you say, it is Congress's job to do our work
and get this legislation in a bipartisan fashion on the
President's desk. One of my top priorities in USICA is the
regional technology hubs. Can you discuss the importance of the
regional tech hubs and the impact they will have on non-
coastal, nontraditional areas of the country?
Secretary Raimondo. Yes, thank you. And thank you for your
leadership and your spirit of cooperation on this. We talk all
the time about chips, but the tech hubs are every bit as
important, and they are designed to create, you know,
ecosystems of innovation in communities around the country that
have been, you know, overlooked. And, for example, in the
Midwest, there are fantastic research universities.
I think Purdue just launched a whole new program for
semiconductor master's programs. So what we want to do is in
regions around the country, bring together research
institutions with entrepreneurs, with companies to take the
great ideas coming out of the research institutions and
translate them into products that we can make.
I will say this, we need more fabs in America, no question
about it. We need more semiconductor manufacturing capacity.
That isn't nearly enough. That isn't nearly enough. We need to
start increasing our innovation in all emerging technologies,
in semiconductors, in design, in packaging, in energy
efficiency, and all of that starts at the ground level.
And it isn't all going to happen in Silicon Valley, Boston,
and Austin, Texas. So this is about, you know, getting
throughout America, tapping into that research, and creating a
workforce in deep wells of, you know, like I said, ecosystems
of talent and entrepreneurship and innovation and, you know,
activity.
Senator Young. You know, that is how I see it, Secretary.
Building on existing assets, existing bases of talent, whether
it is in the universities or outside the walls of the
university. We have incredible talent across this country, it
just needs to be harnessed, as we have harnessed talent with
the assistance of Government as customer or Government as
investor in past generations in places like Silicon Valley or
the Research Triangle of North Carolina or in Boston.
So places like Indiana, and there are many out there that
would benefit from these sorts of investments. Another value
proposition I consistently hear about as we discuss the tech
hubs is from venture capitalists. It is a frequent lamentation
of those who start startup businesses in the state of Indiana
that you have to go to a place like Silicon Valley to get your
business model funded.
And the venture capitalists are saying, well, if you make
these sorts of investments, we are going to be making a lot
more visits too, spending more time focusing on geographies
like the state of Indiana.
So this is also a major source of interest to all of them.
Do you have any thoughts, based on your professional background
before you were involved in Government, on that topic?
Secretary Raimondo. Yes, I think what you say is exactly
right. So right now, about 90 percent of all venture capital
money flows into six or seven cities and towns in America, 90
percent. And you know what they are, as you say, Silicon
Valley, Boston, New York, et cetera. I promise you, not 90
percent of all entrepreneurs or entrepreneurial talent or
innovation is in those six places. But venture capitalists want
to see a critical mass before they start traveling there to
invest.
And that is what these tech hubs will do, create some
critical mass. There is also what we refer to in the business
as the valley of death, which is you get a little startup
money, but then it is hard to raise money here to get to scale.
This is sort of the valley of death. Tech hubs will help to get
companies through that valley of death so they can access
deeper pools of capital.
Senator Young. That is the tech maturation monies that will
go to designated hubs, right?
Secretary Raimondo. Yes, exactly.
Senator Young. Well, I see my time is coming to an end, but
sometimes people try and figure out how to characterize this
legislation. Is it innovation legislation? Is it a China
competitiveness bill? You know, there is a happy coincidence
between the two.
And if we can harness the talent, the energies, the
entrepreneurial spirit, the broad, deep capital markets of the
United States of America become more innovative, there is no
doubt in my mind that we are going to win the 21st century for
American values. So they are really one--they are two sides of
the same coin.
And so thank you for speaking to that important feature of
USICA. We will do our work and hopefully get it done here in
coming months. Thank you, Chairman.
Secretary Raimondo. Thank you.
The Chair. And thank you, Senator Young, for the
legislation and your participation in it. And I would just say
that Senator Young and I had a chance to jointly recently speak
at a symposium here by Notre Dame. And I think the thing that
we keep forgetting in this issue is that we do have distributed
generation already in our institutions.
And so this is so much about taking what is there and
dusting off our R&D capabilities and making it faster and more
invested, you know, through the hubs and through the tech
center. So I do think, you know, when we think about the
response that we are now seeing from China and others, all of a
sudden they are going to like--they are going to try to
accelerate their innovation.
Never underestimate what we already have invested in our
university systems and how they are going to help us. And that
is, you know, part of the network that we don't spend enough
time talking about.
But if we get to Conference, we are going to spend a lot of
time talking about it, that and EPSCoR and everything else and
how we--but this distributed network that is represented by
these institutions really is a very, very powerful American
tool, so.
Secretary Raimondo. Yes. I couldn't agree more.
The Chair. OK. Senator Warnock.
STATEMENT OF HON. RAPHAEL WARNOCK,
U.S. SENATOR FROM GEORGIA
Senator Warnock. Thank you so very much, Madam Chair. And
great to see you again, Secretary Raimondo. Everywhere I go in
Georgia, I am hearing from families who are struggling because
of shortages and breakdowns in our supply chains. I recently
visited Newnan, Georgia, a town that is suffering a year later
from the devastation of a tornado. Families there have been
struggling to rebuild their lives.
And as they try to get their lives going again, one of the
biggest problems that they have is windows. Folks simply can't
get windows delivered quickly enough so that they can get back
in their homes--a year after the tornado. This year, the
Department of Commerce has requested over $15 million to
analyze global supply chains.
And I think it is important to collect this data, but we
are now years into this crisis, and Georgia families need
more--need more than data, obviously. They need help. Secretary
Raimondo, what is the value of having this new information and
how will it inform your specific actions to address supply
chain issues?
Secretary Raimondo. Thank you, Senator. And, you know,
those are heartbreaking stories. And we hear them all over the
country. I don't think anyone predicted how much havoc COVID
could wreak on our supply chains.
And if we have learned one thing these past couple of
years, is that the Federal Government is woefully under-
researched and under focused on supply chains and shoring up
our resiliency.
So what we are doing, and I will follow up with you
specifically on the windows to see what we can do, because my--
by the way, what I have learned is, you have to go deep into
each sector, and so I will follow up to help you with that.
Senator Warnock. That will be great.
Secretary Raimondo. But in any event, you know, what we
need to do is have a continuous, constant monitoring and
mapping of these supply chains. We need to provide financing.
You know, we have lost 25 percent of our small and medium size
manufacturers in the past 25 years.
Our small and medium sized manufacturing industrial base
has been decimated. Germany, Japan, other countries, they
invest. They make small loans available to small manufacturers
so they can provide these goods to our people. So that is what
the Department of Commerce ought to be doing and that is why we
are requesting this money.
Not so that we can just fight the fires associated with
supply chain disruptions from Russia or COVID, but so that like
we can prevent these disasters in the future.
Senator Warnock. Right. And if Congress appropriates this
funding, what supply chain improvements will Georgia families
see when they are at the grocery store or the hardware store or
buying school supplies? When will they actually start seeing
these changes?
Secretary Raimondo. Look, I hope that people are starting
to feel it a little bit every week, every month, every year. We
are working--as I said earlier, I currently have 40 workstreams
going on supply chains. This stuff I wish I could flip a
switch, you can't. But we are--you know, congestion at the
ports is down. Better pricing in lumber. We are seeing it. We
are just going to have to stay at it with the vigilance and
sense of urgency every day, product by product.
Senator Warnock. And beyond the budget process, we also
have an opportunity to strengthen supply chains through the
bipartisan competition bill. I look forward to that work
happening here in the Senate. I am a proud member of the
Conference committee representing the concerns of Georgians.
I am glad that we agree that one of the top priorities
should be to shore up the semiconductor supply chain through
funding incentives to bring chips manufacturing to the United
States. It has been almost a year since we considered this
funding in this committee. Will you be ready to distribute the
funding as soon as it is available?
Secretary Raimondo. Yes, absolutely. I mean, obviously, we
have to go through the process and the statutory requirements,
but we are already laying the groundwork. I would suggest,
Senator, that the single most important thing you or any
Senator can do to ease the inflationary pressures and supply
chain problems in your state is to quickly pass USICA, or the
bipartisan innovation law.
That calls for work on chips, which are in every piece of
electronics. It calls for an establishment of a supply chain
office. We will never be able to fundamentally solve these
problems for your constituents until that law is passed and the
Federal Government is implementing it.
Senator Warnock. I certainly agree there that we need to
get this law passed as soon as possible so we can provide real
relief to the supply chain crisis that impacts ordinary folks,
and I look forward to fighting to make that happen as soon as
possible. Thank you so much.
Secretary Raimondo. Thank you. Nice to see you.
The Chair. Well, I think I would add, Senator Warnock, as
the issue of another supply chain problem was looming large,
that is the SKLG issue on battery technology, I don't think I
heard more from a concerned member than Senator Warnock, who
provided great leadership in bringing people's attention to it,
and Secretary Raimondo digging in at the Executive Branch to
solve the problems.
So, I want to say I appreciate both of you for being on the
ball on that particular problem. And I think it is just an
example. It really was like one of the first big supply chain
crises that we had and literally would have meant the loss of
thousands of jobs in Georgia if we didn't solve that problem.
So, very much want to thank you, Secretary Raimondo, for
your leadership on that. And again, thank Senator Warnock----
Senator Warnock. Thank you.
The Chair. Because of his persistence because he was very
persistent on this issue. Well, I think that is the first
round, unless there is a member that I am not seeing online or
are swiftly on their way. I would just like to ask a second
round follow-up question on the Office of Space Commerce. Is
there an update on that? Is there something you can tell us? I
know my colleague, Senator Wicker, has left, but is there
something you can tell us about that particular post and
position?
Secretary Raimondo. Yes, I appreciate that. So I know this
is a priority of yours and the Ranking Member. I am very
pleased to say that we are going to be announcing a new
Director, Richard Del Bello. He has 25 plus years of space
experience in the commercial sector, and he was at the--in the
White House Office of Science and Technology. And we are
elevating the Office of Space Commerce within NOAA.
So he starts May 9, and he will be reporting right up into
the NOAA headquarters. And we are, of course, in the budget
requesting money primarily for the new cloud based monitoring
system so we can do a much better job of monitoring space
traffic.
So I think that like at long last, we are, I don't know,
organizing, prioritizing space commerce and putting leadership
in that we need, and I am very much asking Congress for support
on the funding that the President requests.
The Chair. Well, thank you. That certainly is good news.
And I think Senator Wicker will be pleased with that as well
and look forward to whatever we have to do to support that
effort. I would just say, you know, with thousands of jobs
already in the Pacific Northwest on this and a new frontier, I
think lots of people are really trying to better understand
this particular aspect of our commerce.
And obviously, just like every other theme here we have
been talking about is competition. And so for the United States
to continue to look at this issue and move ahead, we think that
that is critically important. OK. Well, I think that does it
for this morning. Thank you, Madam Secretary, for being here
and for your hard work on many subjects.
And as you can see, the breadth and depth of Commerce does
bring everything from red snapper issues to----
Secretary Raimondo. Salmon.
The Chair. Well in the fishing area, yes, but supply chain
on chips, and all sorts of things. So we appreciate your in-
depth knowledge and attention to all of those details. Really
very important for our country, and we appreciate your
leadership. The hearing will be open for two weeks.
And anybody who has to--wants to submit questions, please
do so by Wednesday, May 11 at noon, and Secretary Raimondo will
have two weeks to respond to those. Without, the hearing is
adjourned.
[Whereupon, at 11:35 a.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. Maria Cantwell to
Hon. Gina M. Raimondo
CHIPS Act Implementation Planning: Clark County, Washington has a
large assembly of semiconductor industry employers and is often
referred to as part of that region's ``Silicon Forest.'' A stable and
well-trained workforce is vital to the future viability and growth of
Washington's ``Silicon Forest'' and many other existing high-technology
ecosystems around the country, even as we pursue the establishment of
new semiconductor facilities.
Question 1. Will the Department commit to ensuring workforce
stability in existing high-technology ecosystems and to preventing a
``brain drain'' in these areas while simultaneously investing in new
semiconductor facilities through the CHIPS Act? How?
Answer. Thank you for your leadership in the passage of the CHIPS
Act. Commerce supports a strong workforce component for CHIPS. It is
clear that the semiconductor workforce will need to expand to meet the
demand created by CHIPS--poaching workers from one plant to work at
another does not expand the workforce. To build the needed workforce,
Commerce supported provisions in the CHIPS Act which require workforce
and community investments by applicants, that include workforce
development as an eligible use of funds, and that direct the National
Semiconductor Technology Center to develop, incentivize and expand
participation in workforce training programs for the microelectronics
and semiconductor industry.
Domestic Manufacturing Support: Domestic manufacturing capabilities
are critical for the United States. The President's FY2023 budget
request proposes boosting the Manufacturing Extension Partnership
``MEP'' and Manufacturing USA programs by $125 million and $81 million,
respectively, though the new levels for both programs combined are
almost $350 million below USICA authorizations, respectively.
NIST MEP has an impressive set of accomplishments in Washington
State. Our MEP Center has helped create or retain over 15,000 jobs, and
increased revenue by more than $1.5 billion for small-and medium-sized
businesses.
Question 2. Many small and medium-sized businesses across the
United States are struggling to compete in contested global
marketplaces and also need to secure themselves against frequent and
emerging cyber threats. What can we do to help these businesses be more
competitive and secure?
Answer. Small and medium-sized businesses need practical
cybersecurity resources to cost-effectively manage their internal
cybersecurity risks and to minimize risk transmission to their
interconnected businesses, as well as to be more competitive and
secure. Through the NIST Small Business Cybersecurity Act, Congress has
given NIST responsibility to disseminate consistent, clear, concise,
and actionable resources to small businesses. The NIST Small Business
Cybersecurity Corner puts resources in one place for easy access by
small businesses. All resources are free and draw from information
produced by NIST, other Federal agencies, as well as non-profit
organizations.
Manufacturing is the second-most targeted industry for
cybersecurity attacks, resulting in as much as a $36.3 billion annual
loss in U.S. Gross Domestic Product (GDP). Small and medium-sized
manufacturers (SMMs) are especially vulnerable, perceived as easy entry
points into larger organizations. To support the industry, NIST's
Manufacturing Extension Partnership (MEP) has provided cybersecurity
awareness training and assistance services to manufacturers since 2017,
often collaborating with organizations such as Department of Defense
Procurement Technical Assistance Centers (PTACs), FBI InfraGard, State
partners, Manufacturing USA Institutes, and vetted industry partners.
MEP Centers work with SMMs to help them develop plans for managing
risk. MEP Centers stand ready to assist SMMs and as of 2021, have
provided guidance to more than 3,500 manufacturing companies, completed
more than 1,300 cybersecurity-specific projects, and conducted more
than 250 cybersecurity awareness and training events.
In addition, the Department urges the Congress to fund the 2023
President's Budget request for an additional $10.85 million and 38
positions at ITA's Industry and Analysis (I&A) business unit. I&A plays
a central role in identifying risks and opportunities for the growth of
U.S. industries and has a unique strength in understanding industries
and their global supply chains. This analytical work informs and
directs many of the Administration's supply chain activities, including
for crisis response, such as for Russia-Ukraine, and long-term
strategic and policy efforts to counter risks posed by foreign
adversaries, such as the People's Republic of China's (PRC) civil-
military fusion and their efforts to exploit U.S. technological
breakthroughs and corner the market in specific supply chains, as it
has with the solar industry. I&A also supports U.S. economic and
national security through identifying commercialization opportunities
for firms, identifying chokepoints in supply chains, directing action
to mitigate risks, and supporting key industries to enhance domestic
manufacturing and expand exports, which are critical to trade
activities in the state of Washington. With the FY 2023 request, I&A
can add value on existing lines of effort, including understanding and
advancing strategies and specific recommendations on critical minerals,
electric vehicle batteries, and semiconductors as well as leading
international engagements.
Regional Innovation: The United States faces key challenges in the
coming decade. One is maintaining U.S. technological preeminence in the
face of well-funded and capable global competitors. Another is that
regions of the country are diverging into two separate economic
realities--one that is experiencing rapid growth and economic
prosperity, and another that is struggling to transform traditional and
aging industrial base economies. This is going on even in my state,
where folks in Eastern Washington are eager to join in and experience
the many benefits from the development of a new Hydrogen hub in the
region.
To address this growing divide, USICA authorizes the ``Regional
Technology Hub Program'' which designates no fewer than 18 regional
hubs to build capacity and strengthen local innovation ecosystems. I
can tell you that a lot of people in my state are excited about the
opportunities these hubs will provide, in hydrogen energy and other
industry.
Question 3. Secretary Raimondo, using lessons learned from previous
programs implemented by the Department, how many technology hubs do you
think the Department needs to establish so that all Americans from all
regions, including Eastern Washington state, can benefit from
technology innovation and economic prosperity that will come from such
investments?
Answer. The short answer is that we certainly need more than the
minimum of 18 technology hubs authorized by the CHIPS and Science Act
of 2022, especially if the goal is to ensure that all Americans from
all regions, including Eastern Washington, can benefit from the
technology innovation and economic prosperity that will come from such
investments in the manner intended by the Technology Hubs program.
Ultimately, the number will depend on local and regional
characteristics across the country, such as industry mix, regional
disparities in economic and technological development and research
institutions, population size, and whether geographic regions are urban
or rural. While we are grateful that Congress is in the process of
authorizing the Technology Hubs program, this authorization still
requires the funding to stand up this program, which means that, even
with this program authorized, the Department will not be able to
establish any Technology Hubs in any part of the country without
funding.
NOAA as a Climate Leader. The recent Department Administrative
Order (``DAO'') to establish the Climate Council and direct the
integration of climate considerations into all of the Department's
policies, strategic planning, and programs is a great step toward
addressing the climate crisis.
NOAA's mission is ``to understand and predict our changing
environment, from the deep sea to outer space, and to manage and
conserve America's coastal and marine resources.'' As we look to the
future, NOAA's work is becoming increasingly important as the United
States and the rest of the world works to respond to the impacts of
climate change. NOAA plays a central role in the Department and
Administration-wide response to the climate crisis.
Question 4. To that end, I am working on a NOAA Organic Act, to
permanently codify NOAA as an agency within the Department of Commerce.
Do you support codifying NOAA? How would you strengthen NOAA's role as
a leader in climate science and data services within the Department of
Commerce, as well as across the Federal government in an Organic Act?
Answer. I look forward to working with you on a NOAA Organic Act
given NOAA's role as a leader in climate science and data services
within the Department. NOAA's science seeks to understand, predict, and
provide tailored, information-based services about climate-driven
changes in the Earth's environment, from the depths of the ocean to the
surface of the sun, and to conserve and manage our coastal and marine
resources. NOAA is an authoritative source within the Federal
government for climate data and services, just as it is for weather
data and services. NOAA's data and services span from data collection
to processing, to research and modeling, to product development and
dissemination, to assessment. NOAA is unique in that it is mandated to
make its science operational in order to protect lives and property.
NOAA develops and operates the full spectrum of climate science to
services, while working in collaboration with its sister agencies-
within the Department of Commerce and elsewhere in the Federal
government-at many points along the spectrum. All of this is important
for the vitality and resilience of the Nation's economy, making NOAA a
key pillar for fulfilling the Department of Commerce's mission and
strategic plan.
Atmospheric Data Gaps. NOAA research in atmospheric composition is
foundational to the implementation of the DAO. However, there are
significant gaps in information on the quantity, concentration, surface
fluxes, and other characteristics of materials in the atmosphere,
including greenhouse gases, aerosols, and water vapor, that limit the
Nation's ability to adequately monitor and study the current processes
within the climate system. This is important because to address the
climate crisis, we must understand and attribute the sources and sinks
of relevant gases and aerosols, and track their variation over time.
NOAA and its Office of Ocean and Atmospheric Research already
undertakes research, including scientific research, computer modeling,
and other forms of analysis, and uses satellite, airborne, and ground-
based systems to monitor atmospheric chemistry and dynamics, including
aerosols and greenhouse gases, as well as the chemical compounds,
atmospheric conditions, and air-sea fluxes that affect their
concentration.
Atmospheric concentrations of aerosols, greenhouse gases, and other
atmospheric constituents, emanating from both natural and anthropogenic
sources, are critical for the accurate prediction of changes to the
climate system and resultant weather patterns.
Question 5. How will the Department work to expand this critical
research necessary to understand the atmosphere and its climate
drivers? Will you work with me to ensure that this work remains a
priority for NOAA as the Department of Commerce Climate Council works
to coordinate and oversee the implementation of this DAO?
Answer. The Department of Commerce and NOAA are committed to
working with you to ensure that climate and atmospheric research is a
priority for the Climate Council and the implementation of the DAO.
NOAA recognizes that critical research in atmospheric and climate
science is key to the Department's Climate Council. Uncertainties in
the prediction of extreme events, poor air quality, climate drivers,
and projection of future climate scenarios result in part from our
inability to adequately describe and resolve fundamental processes
associated with key atmospheric components such as air pollutants,
greenhouse gases, and aerosols and their larger impacts on atmospheric
composition and Earth's radiation budget.
NOAA will continue to lead in reducing key uncertainties in these
important research areas by accelerating our investment in observing
platforms and atmospheric and Earth's system models, fulfilling its
mission to protect human lives, contributing to a healthy and resilient
economy, and preparing our Nation for future challenges. This will be
achieved by:
Advancing observations and modeling to fill gaps in our
understanding of air quality, climate, stratospheric ozone, and
the Earth system.
Utilizing in-situ and remote-sensing instrumentation to
measure atmospheric composition.
Expanding capability and access of the atmospheric observing
network to aircraft, ships, towers, balloons, and ground-based
platforms.
Developing and deploying new and innovative instruments for
these platforms.
Expanding modeling infrastructure for atmospheric
composition forecasts and hindcasts.
Conducting quantitative assessments of atmospheric
composition satellite products.
Using operational products that include providing near-real-
time emissions estimates, improving air quality and weather
forecasting, and monitoring fires and other hazards.
Investigating natural and human activities that may alter
the chemistry and reflectivity of the stratosphere or the
reflectivity of the marine boundary layer through the addition
of aerosols.
Developing transformative uncrewed observing systems
(including platforms, sensors, and data management and
analysis).
Fishery Disasters. Commercial and Tribal fishermen from the State
of Washington are currently awaiting disaster determinations for
fisheries in Washington and the North Pacific. NOAA Fisheries currently
has 11 pending fishery disaster declaration requests in this region.
Two of them are for Tribes and several are in Alaska, where many
Washington fishermen fish. Some fishermen have been waiting since
January of 2020 for the Department to make a disaster declaration. We
need NOAA Fisheries to act quickly to help our fishermen, but the
fisheries disaster determination and allocation of disaster funds
continues to take years, which results in devastating impacts to
coastal economies that rely on disaster assistance.
Question 6. When does the Department of Commerce and NOAA expect to
make these determinations and when do you anticipate funding for this
disaster? When will funding be disseminated to fishing families and
Tribes? Last year, the Senate passed the Fishery Resource Disasters
Improvement Act. Do you support this commonsense legislation to put
clear timelines into the fisheries disaster declaration process?
Answer. I have received over a dozen requests since 2020 from at
least seven different Washington tribes for multiple fisheries, some
dating back to 2015. To evaluate fishery disaster requests efficiently,
NOAA Fisheries requires finalized commercial revenue loss data and
fishery specific information from the requesters. Some of the tribes
revised or augmented their requests several times and others did not
provide the necessary information until late last year. Our review of
those requests are in the final stages within the Department of
Commerce.
In addition, I have received two requests for Washington non-Tribal
fisheries in 2021. NOAA Fisheries has received the necessary
information from the State and is expediting its review.
I have also received requests from tribes in Oregon, California,
and Alaska, and NOAA Fisheries is working to secure the necessary
finalized commercial revenue loss data.
If any of these requests are positively determined, they will be
eligible for funding. NOAA Fisheries will work as quickly as possible
to allocate a portion of the remaining FY22 fishery disaster
appropriation.
I support the intent of the Fishery Resource Disasters Improvement
Act to create more predictability and speed in the decision-making
process, and understand your concerns regarding the amount of time it
takes to determine fishery disasters, currently defined as commercial
fishery failures due to a fishery resource disaster in the Magnuson-
Stevens Act. NOAA Fisheries is also taking several steps internally to
streamline the process. NOAA Fisheries is more clearly describing the
information needed to complete reviews consistent with the NOAA
Fisheries Disaster Policy and is implementing additional measures to
streamline the review process.
Buyback. Congress has legislated several buyback programs for our
West Coast fisheries. Numerous fishing fleets in the State of
Washington are currently paying extremely high interest rates on
fishing capacity reduction loans. Several of these programs are quite
old and interest rates have dropped since they were established. Like
you would for your home mortgage, our fishermen should be able to
refinance and lower their interest rates. However, it has been
challenging to get the Executive Branch to work with Congress to help
our fishermen. For several years I have been requesting technical
drafting assistance on legislation to allow these fishermen to reduce
the rates on these loans. Fishermen should be able to take advantage of
lower interest rates like other commercial entities.
Question 7. With the Federal Reserve looking to increase interest
rates, it is imperative that we pass this legislation quickly. Will you
commit to providing technical drafting assistance on legislation to
allow fishermen in my state to refinance these loans?
Answer. Yes, we will provide technical drafting assistance.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Hon. Gina M. Raimondo
Question 1. In your Fiscal Year 2023 budget justification, you say:
``Addressing the climate crisis is an essential and existential
component of the Department's mission to create the conditions for
economic growth and opportunity.'' \1\ It is therefore extremely
troubling that the Department recently initiated an unwarranted
antidumping and countervailing duty (AD/CVD) circumvention
investigation requested by a single, small manufacturer. This
investigation threatens to subject 80 percent of U.S. solar imports to
tariffs ranging up to 250 percent, including potential retroactive
tariffs. In a survey of 200 companies operating across the solar value
chain, 90 percent reported that your Department's investigation alone
will have a ``severe to devastating impact'' on their business in 2022,
with 75 percent of respondents already experiencing cancelled or
delayed module shipments.\2\
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\1\ https://www.commerce.gov/sites/default/files/2022-03/Commerce-
FY2023-BIB-Introduction.pdf
\2\ https://pv-magazine-usa.com/2022/04/05/seia-speaks-on-
potential-devastation-of-the-solar-anticircumvention-investigation/
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a) Do you see this circumvention inquiry as consistent with your
Department's commitment to using ``every tool at [your] disposal to
help address this [climate] crisis and related economic impacts,'' as
you stated just last week?\3\
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\3\ https://www.commerce.gov/news/press-releases/2022/04/secretary-
raimondo-establishes-commerce-climate-council-directs
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Answer. The Biden-Harris Administration is committed to addressing
the climate crisis. The Department of Commerce will continue investing
in supply chains, technology, and infrastructure to combat climate
change while creating millions of good-paying, union jobs. And we will
continue supporting U.S. workers and businesses to compete and win
globally, including by vigilantly protecting American workers and
businesses from unfair foreign practices, such as state-sponsored
subsidies that harm the competitiveness of U.S. firms and undermine
free and fair trade. Circumvention, that is, avoiding existing
antidumping (AD) and countervailing duties (CVD) undermines the effect
of these duties to provide the intended relief to U.S. manufacturers
and workers.
Ensuring U.S. workers and businesses can compete on a level playing
field globally is at the core of our trade enforcement laws and
Commerce's mission. American businesses are sharpened, not threatened
by competition, so long as that competition is not rigged through
unfair practices. AD/CVD duties are not punitive, rather they ensure
that imports are fair by counteracting unfair subsidies and dumping.
However, in accordance with Presidential Proclamation 10414 issued
on June 6, 2022, Commerce issued a Final Rule on September 16, 2022, on
the suspension of liquidation, duties and estimated duties for 24
months or until the President declares the emergency is over.
Question 2. Pursuant to 19 U.S. Code Sec. 1677j, the Secretary of
Commerce is charged with determining whether a circumvention
determination is ``appropriate . . . to prevent evasion'' of an AD/CVD
order.
a) In weighing the appropriateness of this inquiry, are you taking
into account the totality of disruption to the domestic solar industry
from a potential affirmative circumvention ruling, including a
projected reduction in solar deployment of up to 16 gigawatts annually
and a threat to 70,000 U.S. solar jobs?\4\
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\4\ https://www.seia.org/auxin-solar-tariff-petition-impact-survey
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Answer. Commerce reached its decision to initiate these
circumvention inquiries based on U.S. laws and regulations governing
circumvention inquiries. AD/CVD proceedings address unfair trade
practices and are not related to fluctuations in industry supply or
prices, and Commerce cannot, by law, consider extra-statutory factors
when conducting trade remedy proceedings.
Question 3. In alleging circumvention of existing AD/CVD orders on
China, the petitioner argues that the manufacturing happening in the
four Southeast Asian countries in question is ``minor or
insignificant.'' However, Commerce has repeatedly established that the
conversion of a wafer into a cell is not minor processing, but rather a
technologically complex and capital intensive process that is essential
to converting sunlight into energy.
a) Can you explain why the Department is reexamining this issue
when its own precedent, affirmed multiple times over the past decade,
has already asked and answered the central question at issue in this
petition?
Answer. Commerce was scheduled to announce its preliminary and
final determinations in these circumvention inquiries by August 30,
2022, and January 27, 2023, respectively. Due to the complex nature of
circumvention investigations, the preliminary determinations will now
be made by November 28, 2022. Commerce's determinations are made in
accordance with U.S. law, and be based on the facts on the record as
well as in consideration of comments filed by interested parties.
______
Response to Written Questions Submitted by Hon. Kyrsten Sinema to
Hon. Gina M. Raimondo
Semiconductor Supply Chains. The importance of semiconductors has
never been clearer. Unfortunately, the United States has fewer
available silicon deposits required to produce semiconductors than
other nations. This leaves our country vulnerable to disruptions should
the world's major silicon producers, including China and Russia, reduce
silicon exports to the United States.
Question 1. What actions has the Commerce Department taken in
regards to critical minerals and rare earth's supply chain and domestic
production vulnerabilities and are there additional steps Congress can
take to assist the Department in its efforts?
Answer. Through stakeholder engagements, Commerce has identified
several specific critical minerals, materials, and rare earth elements
that are essential to the supply chains associated with defense,
advanced batteries, and semiconductors, and their end-use applications.
We are working with interagency partners on the identification of
domestic and global critical mineral deposit resource locations and
processing facilities and will continue to work with allies to secure
more reliable and resilient supply chains to foster long-term strategic
access of these materials for the United States. We are also
identifying U.S. companies involved in the development of advanced
recycling technologies to recover critical minerals from end-of-use
advanced batteries contained within electric vehicles, so that we can
sustainably reuse these materials for the next generation of
domestically manufactured products. Finally, we are working with the
White House and other agencies to implement a whole-of-government
approach to secure reliable and resilient supply chains.
For example, on March 31, 2022, the President signed a Presidential
Determination (PD) under the Defense Production Act, Title III,
invoking the use of that authority to bolster our clean energy economy
by finding that strategic and critical materials used for large-
capacity batteries--such as lithium, nickel, cobalt, graphite, and
manganese--are essential for the national defense. This will result in
contracts, grants, and other economic incentives to expand sustainable
domestic production of these critical materials and this initiative
would benefit from additional Congressional support. Commerce and other
relevant agencies are working closely with the Department of Defense in
support of that agency's efforts to utilize Defense Production Act
funding to support critical minerals-related projects.
In order to help the Department move forward on critical minerals,
the Department urges the Congress to fund the 2023 President's Budget
request for an additional $10.85 million and 38 positions at ITA's
Industry and Analysis (I&A) business unit. I&A plays a central role in
identifying risks and opportunities for the growth of U.S. industries
and has a unique strength in understanding industries and their global
supply chains. This analytical work informs and directs many of the
Administration's supply chain activities, including staffing most of
the Department's actions on critical minerals, for crisis response,
such as for Russia-Ukraine, and long-term strategic and policy efforts
to counter risks posed by foreign adversaries, such as the PRC's civil-
military fusion and their efforts to exploit U.S. technological
breakthroughs and corner the market in specific supply chains, as it
has with the solar industry. With the FY 2023 request, I&A can add
value on existing lines of effort, including understanding and
advancing strategies and specific recommendations on critical minerals,
electric vehicle batteries, and semiconductors as well as leading
international engagements.
Broadband. The bipartisan infrastructure law represents a historic
investment in broadband deployment, with Arizona set to receive
hundreds of millions of dollars to expand access to broadband internet.
This is the largest ever investment in broadband expansion, and is
crucial for Arizonans living in rural and tribal areas to join the
Internet economy. The bipartisan infrastructure law directs the
National Telecommunications and Information Administration to issue
guidance on the $42 billion Broadband Equity, Access and Deployment
program within one-hundred-eighty days.
Question 2. Is NTIA on track to issue the guidance on time and will
the guidance be technology neutral in its approach?
Answer. On May 13, 2022--several days ahead of the 180-day
statutory deadline--NTIA released its Notice of Funding Opportunity
(NOFOs) for the Broadband Equity, Access, and Deployment (BEAD)
Program. Consistent with the statute's requirements, the NOFO sets
forth minimum technical requirements for BEAD-funded networks and takes
into account the reliability of any proposed solution. The statute also
directed NTIA to establish a category of ``priority broadband
projects'' that can be expected to serve Americans' connectivity needs
well into the future. We expect that those projects will, in most
cases, rely on end-to-end fiber-optic connections, though ``fiber-to-
the-curb'' may be the most cost effective solution in some cases.
However, we believe that there is room in the BEAD program for many
technologies, including cable, wireless, and in some cases other
options, and we expect a wide variety of platforms to compete
aggressively for grant funding.
Department of Commerce Solar Investigation. I was disappointed to
see the Department open a circumvention investigation regarding solar
panels and modules imported from four Southeast Asian countries. One of
Arizona's major electric utilities, Salt River Project, has six solar
projects and 1,400 megawatts of future energy generation that will
likely be delayed, or even cancelled, as a result of this
investigation. Considering Arizona's abundance of natural sunshine, I
strongly support efforts to harness solar energy while supporting an
all-of-the-above energy framework.
Question 3. Will the Department conduct an expedited preliminary
review to settle this matter and remove the uncertainty facing solar
manufacturers, installers, utilities, and homeowners throughout the
country?
Answer. Commerce was currently scheduled to announce its
preliminary and final determinations in these circumvention inquiries
by August 30, 2022, and January 27, 2023, respectively. Due to the
complex nature of circumvention investigations, the preliminary
determinations will now be made by November 28, 2022. However, in
accordance with Presidential Proclamation 10414 issued on June 6, 2022,
Commerce issued a Final Rule on September 16, 2022 on the suspension of
liquidation, duties and estimated duties for 24 months or until the
President declares the emergency is over. This Final Rule should
provide certainty to those stakeholders.
______
Response to Written Questions Submitted by Hon. John Hickenlooper to
Hon. Gina M. Raimondo
Orbital Safety: The U.S. Innovation & Competition Act (USICA) would
authorize the Office of Space Commerce (OSC) to carry out a program to
improve the collection, processing, and dissemination of space
situational awareness data, information, and services for civil and
commercial operators in space to address on-orbit safety. OSC is
developing an Open Architecture Data Repository (OADR) to integrate
commercial data on orbital objects, including debris, into a
comprehensive space object tracking system.
Question 1. What additional Congressional support does OSC need in
order to deliver on their critical space object tracking, monitoring,
and notification capabilities? Are additional Congressional authorities
or funds needed in order to foster robust and responsible United States
civil and commercial space activities?
Answer. The Department of Commerce supports provisions that
authorize the Office of Space Commerce (OSC) to carry out a program to
improve the collection, processing, and dissemination of space
situational awareness (SSA) data, information, and services for civil
and commercial operators in space to address on-orbit safety. While no
additional statutory authority is required by OSC to implement such an
SSA program, additional appropriations are necessary as indicated in
the President's Budget Request. To fully foster robust and responsible
United States civil and commercial space activities, additional
authorizations and appropriations will be required.
Supply Chain Resiliency: The U.S. Innovation & Competition Act
(USICA) establishes a Supply Chain Resiliency Program at the Department
of Commerce to work with the private sector to identify and work with
non-federal entities to recommend opportunities to mitigate or address
supply chain vulnerabilities. USICA also expands the capability of key
manufacturing programs at NIST, such as the Manufacturing Extension
Partnership (MEP) program, that support manufacturers and advanced
manufacturing research and development.
Question 2. Could you describe or quantify how USICA would help
grow domestic manufacturing of critical products?
Answer. There are key provisions which would help the Manufacturing
Extension Partnership (MEP) program reach more small and medium-sized
manufacturers (SMMs) in order to bolster domestic supply chain
resiliency. First, it would authorize the expansion of MEP's supplier
scouting program which uses MEP Center experts to locate domestic SMMs
and assess each SMM's capabilities to produce critical products, parts,
and components.
Another provision would allow NIST MEP to exercise a new authority
known as ``Expansion Awards.'' Under this authority, MEP could issue
new awards in a more streamlined manner, enabling more SMMs to become
active participants in the Nation's critical supply chains.
MEP Centers are located in all 50 states and Puerto Rico would help
modernize SMMs' manufacturing processes, help SMMs search and close on
contracts, match SMMs to Original Equipment Manufacturers (OEMs), and
enable SMMs to become active participants in national initiatives like
the Defense Production Act.
Additionally, these provisions will enable innovation for
manufacturing ``scale-up'' and train the domestic workforce for
critical product production in two important ways--first, through the
establishment a new Manufacturing USA (MFG USA) institute focused on
the semiconductor ecosystem; and second, through funding a significant
expansion of the 16 existing MFG USA institutes that currently work to
make domestic production more cost-effective, including niche aspects
of microelectronics. Advanced manufacturing innovation reduces the need
for offshoring critical products and MFG USA institutes create advanced
manufacturing processes that improve cost efficiencies and
environmental impact, provide alternative supply chains, and ensure
that U.S. workers are trained and ready. For example, MFG USA
institutes have created new sensors and `digital twin' manufacturing
models for production efficiencies, developed robots for manufacturing
processes, designed smaller-footprint equipment, and produced
manufacturing alternatives that reduce the cost of new facilities and
new manufacturing capabilities. In addition to semiconductors, these
approaches can be applied to the production of additional critical
products like Active Pharmaceutical Ingredients (APIs) and Personal
Protective Equipment (PPE).
I also support the financing provisions proposed in the America
COMPETES Act to strengthen supply chain resiliency. Over the last 25
years, there has been 25 percent less invested capital in the
industrial base--an investment gap of $300-$400 billion. The passage of
the CHIPS and Science Act is a positive step in strengthening supply
chain resilience, and the 2023 President's Budget includes various
other proposals to advance U.S. manufacturing. I look forward to
working with Congress in this critical area. If enacted and fully
appropriated, the $45 billion authorization of low-cost loans, loans
guarantees, and grants for critical suppliers like what Congress has
authorized through the CHIPS and Science Act for semiconductor supply
chains, the Commerce Department could leverage that up to eight times
in private-sector capital.
In addition to financial incentives, the Department urges the
Congress to fund the 2023 President's Budget request for an additional
$10.85 million and 38 positions at ITA's Industry and Analysis (I&A)
business unit. I&A plays a central role in identifying risks and
opportunities for the growth of U.S. industries and has a unique
strength in understanding industries and their global supply chains.
This analytical work informs and directs many of the Administration's
supply chain activities, including for crisis response, such as for
Russia-Ukraine, and long-term strategic and policy efforts to counter
risks posed by foreign adversaries, such as the PRC's civil-military
fusion and their efforts to exploit U.S. technological breakthroughs
and corner the market in specific supply chains, as it has with the
solar industry. With the FY 2023 request, I&A can add value on existing
lines of effort, including understanding and advancing strategies and
specific recommendations on critical minerals, electric vehicle
batteries, and semiconductors as well as leading international
engagements.
Spectrum Coordination: The National Telecommunications &
Information Administration's (NTIA) Institute of Telecommunications
Sciences (ITS) in Boulder, CO is the premier Executive Branch entity
responsible for telecommunications research. In recent years, as the
demand for spectrum to provide wireless broadband services, lead the
world in 5G development, and unleash new connected technologies for
Smart Cities continues to increase, we have become very aware of the
need for a whole-of-government approach to wireless spectrum
coordination and sharing informed by scientific research, robust
testing, and thorough analysis.
Question 3. How does the work of the Institute of
Telecommunications Sciences (ITS) support communications technology
development and interagency spectrum deliberations and decision-making?
Would expanding NTIA's eligible uses of funds collected from the
Spectrum Relocation Fund (SRF) enhance the spectrum research and
testing capabilities of ITS?
Answer. ITS performs lab and field measurements of both commercial
and Federal spectrum dependent systems which support comprehensive,
end-to-end analyses of their compatibility in proposed shared or
adjacent band assignments. This includes characterizing transmitter
emissions and band occupancy, developing radio wave propagation models
for given scenarios, and assessing the impact of signals--individually
or in the aggregate--on receiver performance. Working under compressed
schedules, ITS often performs ``quick reaction'' measurements to inform
decision-making. For example, in support of DoD, ITS measured C-band 5G
base station out-of-band emissions and showed that they have little
effect on some radio altimeters used in military airspace. This allowed
decision makers to focus on the other possible cause of interference to
military operations--fundamental 5G emissions, which can be mitigated
with improved filtering.
The Department looks forward to working with the Congress on ways
to enhance ITS' spectrum research and testing capabilities. Engaging
ITS measurement, modeling, and analysis earlier in the auction timeline
could result in more accurate NTIA feasibility assessments and provide
more advance notice and time to respond to problems.
Artificial Intelligence Technology Standards: The promises of
Artificial Intelligence (AI) depend on developing transparent and
resilient software development practices. NIST is developing an
Artificial Intelligence Risk Management Framework to help incorporate
trustworthiness considerations into the design, development, and use of
AI products and services. The National Artificial Intelligence Advisory
Committee (NAIAC) convened for the first time on May 4, outlining their
planned work to promote trustworthy AI.
Question 4. How is the Department of Commerce working with
international standard setting bodies to promote the safe and effective
adoption of AI in commercial products or services? What will be the
impact of the AI Risk Management Framework developed by NIST when it is
completed?
Answer. The Department of Commerce is actively leading and
participating in many standards-related efforts to promote trustworthy
AI that is safe and effective. As the Federal Coordinator for AI
Standards, NIST experts are active in standards development in ISO/IEC
JTC 1/SC 42 focused on Artificial Intelligence, as well as other
standards for applications of AI, for example AI in robotics and
manufacturing. To support this work in international standards, the
NIST laboratories conduct a major AI program focused on AI research, AI
measurement and evaluation, and AI technical standards. The President's
FY 2023 budget includes a request of $15 M to catalyze research,
advance innovation, and cultivate trust in AI technologies. The
International Trade Administration (ITA) is assessing how the adoption
of internationally developed AI standards could help facilitate trade
of AI technologies. By engaging with a broad array of stakeholders,
including representatives from the private sector and academia, ITA is
exploring how those standards could impact U.S. economic interests.
The AI Risk Management Framework currently under development by
NIST will provide organizations with the ability to incorporate
trustworthiness considerations into the design, development, use, and
evaluation of AI products, services, and systems. NIST is developing
the AI RMF in consultation with a wide range of stakeholders, including
those from outside the U.S., and in alignment with approaches that
could be adopted by international Standards Developing Organizations.
This will result in a risk management approach that is consistent
globally and provides a robust foundation for wide implementation by
governments and firms in the U.S. and worldwide. Such an approach has
proven successful with NIST's work on the Cyber Security Framework.
The Department is engaging with like-minded partners and allies to
develop and promote technical standards for trustworthy AI. For
example, ITA and NIST are co-leading a Standards Working Group under
the US-EU Trade and Technology Council (TTC) to bring the U.S. and EU
into stronger alignment on international standards for critical and
emerging technologies like AI. NIST currently leads an effort under
this Working Group to develop a joint roadmap for trustworthy AI and
risk management. The Department is also actively engaged in the Working
Party on AI Governance of the Organisation for Economic Cooperation and
Development, which is focused on putting principles of trustworthy AI
into practice. NIST serves as Vice Chair of this effort.
______
Response to Written Questions Submitted by Hon. Raphael Warnock to
Hon. Gina M. Raimondo
5G. The implementation of 5G will be critical for connecting
Americans, and as we roll out this technology, we must also preserve
the safety of airline travels for Georgians and all Americans.
Question 1. What role does the National Telecommunications and
Information Administration (NTIA) have in coordinating spectrum use?
Answer. NTIA serves as the President's principal adviser on
telecommunications policies pertaining to the Nation's economic and
technological advancement. Congress authorized NTIA to establish the
policies for use of spectrum by the Federal government and to promote
the best possible and most efficient use of spectrum, including
protecting the integrity of Federal missions. S NTIA has the authority
to coordinate the telecommunications activities of the Executive
Branch, including consideration of spectrum use. NTIA, in cooperation
with the Federal Communications Commission (FCC), is charged with
management of spectrum resources, including analytical, engineering,
and administrative functions.
Question 2. What is your view on the current efforts to reach a
resolution to the 5G safety issues presented by the Federal Aviation
Administration and airlines in a way that will best serve Georgians and
protect their safety in the skies?
Answer. We are pleased with the agreements reached thus far by the
wireless service providers and the Federal Aviation Administration
(FAA) to ensure airlines are not adversely impacted by new 5G
operations. We hope those agreements can be extended so that
stakeholders can continue their efforts to address concerns about
possible interference to radio altimeters. Please be assured that the
protection of airplane passengers is clearly paramount, but we
understand it also is important to advance 5G deployment. We recognize
that the wireless industry spent significant amounts of money for the
ability to deploy their 5G networks. We also recognize the significant
time and effort expended by the aviation industry to modify its
operations and fleets to enable safe co-existence with 5G networks.
NTIA is working hard to assist the FAA by providing its expertise to
advance the process.
Question 3. What current work is underway to ensure appropriate
coordination going forward, especially regarding communication with all
impacted public and private stakeholders, and who is leading those
efforts?
Answer. We are working to coordinate with all stakeholders. As we
focus on new spectrum bands that will become available to auction
winners, we are trying to get ahead of the engineering and the science
and working in close partnership with the FCC, FAA, U.S. Department of
Transportation (DOT), and the aviation and telecom sectors.
Competition Bill. The House-passed H.R. 4521, the America COMPETES
Act, contains provisions to provide $45 billion in grants, loans, or
loan guarantees to supporting U.S. manufacturing and supply chains in
critical areas.
Question 4. Do you believe that these provisions strengthen supply
chain resiliency, and are there alternatives that Congress should
consider?
Answer. Over the last 25 years, there has been 25 percent less
invested capital in the industrial base--an investment gap of $300-$400
billion. The passage of the CHIPS and Science Act is a positive step in
strengthening supply chain resilience, and the 2023 Budget includes
various other proposals to advance U.S. manufacturing. I look forward
to working with Congress in this critical area.
In addition to financial incentives, the Department urges the
Congress to fund the 2023 President's Budget request for an additional
$10.85 million and 38 positions at ITA's Industry and Analysis (I&A)
business unit. I&A plays a central role in identifying risks and
opportunities for the growth of U.S. industries and has a unique
strength in understanding industries and their global supply chains.
This analytical work informs and directs many of the Administration's
supply chain activities, including for crisis response, such as for
Russia-Ukraine, and long-term strategic and policy efforts to counter
risks posed by foreign adversaries, such as the PRC's civil-military
fusion and their efforts to exploit U.S. technological breakthroughs
and corner the market in specific supply chains, as it has with the
solar industry. With the FY 2023 request, I&A can add value on existing
lines of effort, including understanding and advancing strategies and
specific recommendations on critical minerals, electric vehicle
batteries, and semiconductors as well as leading international
engagements.
FOIA. In October 2021, the Commerce Department received a Freedom
of Information Act request for your calendars, planners, and meeting
agendas between March and October 2021. These calendars have yet to be
released.
Question 5. When do you expect to be able to fully comply with this
request?
Answer. The Department is responding to this Freedom of Information
Act request on a rolling basis. The date on which the Department
completes its response will depend in part on consultations with other
agencies, the timing of which is outside the Department's control.
Question 6. What has caused the delay in responding to this
request?
Answer. The Department should have had more effective coordination
in responding to this request. The Department has made process
improvements and expects to respond to similar requests more promptly
in the future.
Broadband Expansion. Connecting every single Georgian to high-
speed, reliable Internet is one of my top priorities. I look forward to
working with you and your staff at NTIA to ensure that the broadband
funding in the bipartisan infrastructure law goes to the communities
who need it most so that we can finally close the digital divide.
Question 7. In addition to infrastructure buildout, BEAD funding
can be used to provide reduced-cost broadband within a qualifying low-
income multifamily residential building and broadband adoption
(including the provision of devices). How will NTIA communicate to
states that BEAD grants can be used in this way, and will NTIA offer
some specific examples of broadband adoption projects that Commerce
will consider funding?
Answer. NTIA has communicated to the States and territories in the
BEAD Notice of Funding Opportunity (NOFO) that they may allocate BEAD
Program funds to provide reduced-cost broadband within a multi-family
residential building, with priority given to a residential building
that has substantial share of unserved households or is in a location
in which the percentage of individuals with a household income that is
at or below 150 percent of the poverty line. See BEAD NOFO section
IV.B.5.b. NTIA also will ensure that States and territories are aware
that this is an eligible use of BEAD Program funds as part of our
robust technical assistance program.
Question 8. What is the timeline for administering funds under the
Digital Equity Act, and how will Commerce coordinate funds between the
BEAD program and digital equity grants?
Answer. NTIA released its Notice of Funding Opportunity (NOFO) in
connection with the State Digital Equity Planning Grant Program on May
13, 2022. States and territories had until 11:59 p.m. Eastern Daylight
Time on July 12, 2022 to submit their applications. I am pleased to
share that all 50 states and six territories submitted an application.
NTIA expects to complete its review, selection of successful
applicants, and award processing by September 15, 2022. Within one year
of the date on which a State is awarded State Digital Equity Planning
Grant Program funds, that State must develop a State Digital Equity
Plan. NTIA expects to issue a NOFO next year initiating the State
Digital Equity Capacity Grant Program, and then--when NTIA has begun to
disburse those funds, we expect to initiate the Competitive Digital
Equity Grant Program. Throughout this process, we expect states to be
closely coordinating their activities under the State Digital Equity
Programs and the Broadband Equity, Access, and Deployment Program. Both
the BEAD NOFO and the State Digital Equity Planning Grant NOFO require
States to take a holistic and integrated approach to these programs,
developing plans that account for both sources of funding as they seek
to meet their residents' needs. NTIA will be reviewing plans carefully
to ensure that States have taken this directive seriously.
Question 9. How can the NTIA ensure broadband funding is
distributed in an equitable way to minority communities in urban and
rural areas?
Answer. I strongly support the efficient use of Federal funds for
broadband expansion. I also recognize that some communities, especially
in rural areas of the State, have already taken on significant costs to
begin connecting their communities before the passage of the bipartisan
infrastructure law.
Our programs are designed to ensure that States and territories
work closely with their minority communities and take account of the
feedback those communities provide. At various stages in the BEAD
process, including in the Initial Proposal and the Final Proposal, each
eligible entity must provide a detailed description of its efforts to
engage various groups, including underrepresented populations. Specific
engagement efforts must be targeted at underrepresented communities
within the eligible entity, as well as employment engagement strategies
tailored to each specific community's needs, including providing
outreach in the languages used in those communities. We urge measures
such as the creation of task forces or advisory boards with
representatives from underrepresented communities; frequent engagement
with Tribal, State, Territorial, county, and municipal associations
that may have a greater reach to these communities through their local
elected official members; engagement with other eligible entity
departments or agencies that regularly serve these communities and can
help identify and engage with them; and investment in surveys, data
collection, and mapping initiatives to better understand gaps in
connectivity and needs. In addition, we require eligible entities to
take all necessary affirmative steps to assure that minority
businesses, women's business enterprises, and labor surplus area firms
are used when possible, and we encourage each eligible entity to invite
participation in the subgrantee selection process by a broad cross-
section of potential subgrantees, including minority-owned business and
other socially or economically disadvantaged individual-owned
businesses.
Use of Federal Funds. I strongly support the efficient use of
Federal funds for broadband expansion. I also recognize that some
communities, especially in rural areas of the state, have already taken
on significant costs to begin connecting their communities before the
passage of the bipartisan infrastructure law.
Question 10. Some communities have already received Federal funding
from various programs, including the American Rescue Plan Act, the
Federal Communications Commission's Rural Digital Opportunity Fund, and
the U.S. Department of Agriculture's ReConnect program, for broadband
buildouts. Some of these buildouts are ongoing but incomplete while
others have not yet begun. How will NTIA consider these prior
commitments in the context of eligibility for the Broadband Equity,
Access, and Deployment (BEAD) program?
Answer. The Infrastructure Investment and Jobs Act (IIJA) directs
that for the purposes of funding allocation--that is, the establishment
of each State's BEAD program budget--NTIA must rely on the FCC's
Broadband DATA Act maps. Those maps will not, and are not intended to,
show where broadband has not been deployed but there is a Federal
funding commitment to do so. When contemplating how to spend their
budgets, the BEAD NOFO explicitly prohibits States and territories from
treating any location that is already subject to an enforceable
Federal, State, or local commitment to deploy qualifying broadband as
``unserved'' or ``underserved.''--and therefore prohibits the use of
BEAD funds to overbuild such locations. See BEAD NOFO section
IV.B.7.a.ii, item 3. Minimizing funding duplication is critical to
success of the BEAD program and the overarching goal of ensuring that
all Americans have access to affordable, reliable, high-speed internet.
NTIA works closely with the other Federal agencies that fund broadband
(the FCC, USDA, Treasury, and Commerce's Economic Development
Administration (EDA)) to minimize Federal broadband funding
duplication, and will continue to do so as we move forward with the
BEAD program.
Question 11. How will the BEAD program consider whether Federal
grants should be ``stackable'', especially in unserved areas, provided
they do not fund overlapping projects within the same area?
Answer. Except as expressly provided for in the IIJA, funds from
other Federal programs (including funds from the FCC's Universal
Service Fund programs) may not be used as matching funds. The IIJA
expressly provides that matching funds for the BEAD Program may come
from a Federal regional commission or authority and from funds that
were provided to an eligible entity or a subgrantee for the purpose of
deploying broadband service under the Families First Coronavirus
Response Act (Public Law 116-127; 134 Stat. 178); the CARES Act (Public
Law 116-136; 134 Stat. 281); the Consolidated Appropriations Act, 2021
(Public Law 116-260; 134 Stat. 1182); or the American Rescue Plan Act
of 2021 (Public Law 117-2; 135 Stat. 4), to the extent permitted by
those laws. The NOFO encourages eligible entities to consider terms and
conditions that may be associated with potential sources of match funds
and how those may impact the project overall. For example, if an
eligible entity utilizes Federal regional commission funding as a
match, the project will need to comply with all BEAD programmatic
requirements and any requirements imposed by the Federal regional
commission. Likewise, eligible entities that use funds from the
Coronavirus State and Local Fiscal Recovery Funds or Coronavirus
Capital Projects Fund as the source of matching funds for the BEAD
Program must comply with the requirements of both the BEAD Program and
the relevant Treasury program. Loan funding issued through a Federal
agency, such as through the USDA ReConnect Program, may also be used as
match funding.
Question 12. How will the BEAD program consider Federal awards that
only partially fund projects within a census block, including whether
this partial funding disqualifies the entire census block from further
Federal funding?
Answer. As discussed in the BEAD NOFO (specifically footnote 52),
eligible entities may fund qualifying projects that include locations
in an area that has an enforceable commitment for the deployment of
qualifying broadband to less than 100 percent of the locations in that
area. Eligible entities must, however, seek to identify as part of
their challenge process (described in section IV.B.6 of the BEAD NOFO)
those unserved locations and underserved locations that will not be
served by qualifying broadband service as a result of such enforceable
commitment, and use that information in determining whether to treat
each location as unserved or underserved within the relevant area.
Question 13. Will the BEAD program consider ``lookback'' funding
for projects in previously unserved and underserved communities that
have completed a substantial portion of their buildout?
Answer. No. Expenses incurred prior to the award of any BEAD
Program funds generally are not allowable. See, e.g., BEAD NOFO section
IV.B.2, item 10. In addition, grant funds awarded to an eligible entity
under this program shall be used to supplement, and not supplant, the
amounts that the eligible entity would otherwise make available for the
purposes for which the grant funds may be used. See BEAD NOFO section
V.H.2.
Industrial Clusters. I was so glad to see you in Georgia last year
to announce that Georgia Tech Research Corporation's Georgia Artificial
Intelligence Manufacturing Pilot Facility and Technology Corridor was
one of the finalists in the Economic Development Administration's Build
Back Better Regional Challenge. I'm glad to see funding for this
critical project to build a manufacturing cluster in Georgia, which
will help spur innovation and job growth across the region.
Question 14. What is your long-term vision for the importance of
building such industrial clusters in the United States?
Answer. Industry clusters are essential to building communities
that are globally competitive and provide good jobs for workers at all
skill levels. They are also important drivers of shared prosperity by
increasing the amount of investment and talent going to underserved
areas of the country. Industry clusters also enable communities to
realize the other benefits of ``agglomeration'' that arise when
businesses and people locate near one another, such as lower
transportation costs, better matching between employers and employees,
and knowledge spillovers that enhance innovation and raise
productivity.
Increasing the number of regions that can compete globally through
their industry clusters isn't just good for the workers and companies
in those communities but strengthens the U.S. economy in critical areas
such semiconductors, advanced manufacturing, and artificial
intelligence as in the case of your state of Georgia. But to reach our
full potential we need significant Federal investment. According to the
Brookings Institution, just five cities account for over 90 percent of
new jobs within the innovation sector. My long-term vision is dozens of
regional clusters across the country with the catalytic investment
needed for them to successfully capture global markets and accelerate
U.S. competitiveness. To that end, the Economic Development
Administration (EDA) is in the process of finalizing grant winners for
the Build Back Better Regional Challenge (BBBRC).
Question 15. How will the Department of Commerce, National Science
Foundation, and other Federal agencies collaborate to support the
commercialization of research efforts as well as the need for workforce
development in these critical clusters?
Answer. Commerce and the National Science Foundation (NSF) continue
to collaborate to design complementary programs that align with their
respective missions. Technologies each have their own unique journey
from conception to the commercial market, and where NSF focuses on
enabling research, development, and some demonstration, EDA focuses on
the demonstration and deployment of technologies into the market. EDA
is increasingly linking economic development, technology
commercialization, and workforce development in its national
competitive programs such as the Build Back Better Regional Challenge,
the Good Jobs Challenge, Build to Scale, and the STEM Talent Challenge,
and is engaging NSF and other Federal science and technology agency
expertise in its proposal evaluations. In fact, to support this
collaboration, NSF staff have helped with the reviews of applications
for the Build Back Better Regional Challenge.
In terms of workforce development in these critical clusters, EDA
will continue to work closely with relevant Federal agencies, most
notably the Departments of Labor and Education, on workforce
development initiatives to ensure collaboration and coordination on our
complementary efforts. We have and will continue to leverage our
respective expertise and experience around workforce by collaborating
on efforts such as the following: designing new programs to minimize
duplication and ensure complementary efforts and utilizing other
Federal agencies' staff and resources in grant application evaluation
processes.
In addition, regarding technology transfer, NIST is the host agency
for the Federal Laboratory Consortium (FLC), a statutorily chartered
nationwide network of over 300 Federal laboratories, agencies and
research centers supporting technology transfer. One of FLC's key
objectives in FY22 and FY23 is upgrading the public-facing database of
available Federal technologies, facilities, equipment, and
collaborative research opportunities. Further, NIST is co-chair of the
National Science and Technology Council's Lab-to-Market (L2M)
subcommittee, which develops strategies to foster a healthier
technology transfer environment through activities, such as reducing
common barriers to development, sponsoring research, developing
regulatory and legislative packages, and increasing awareness of
Federal assets.
Two sub-bodies of L2M, the Interagency Working Group for Technology
Transfer and the Interagency Working Group for Bayh-Dole, are also
convened by NIST to implement these strategies and create cohesion and
consistency across the Federal agencies to aid in the ability to
commercialize Federal technologies. NIST collects metrics on technology
transfer, both from Federal agencies via annual technology transfer
reports, and, beginning later this year, from Federal funding
recipients through the iEdison system. iEdison, currently managed by
NIH, is being transferred to NIST, which has undertaken a complete
rebuild of the system to update its features, improve its user
interface, and upgrade its capabilities. NIST's completely updated
iEdison system is scheduled for launch before the end of the current
Fiscal Year.
______
Response to Written Questions Submitted by Hon. Roger Wicker to
Hon. Gina M. Raimondo
Question 1. The majority of countries around the world have
eliminated or significantly reduced COVID testing requirements for
international travel, yet the United States continues to have a policy
in place where a negative test is required within one day of departure
when flying into our country, regardless of vaccination status. This
restrictive policy discourages travel to the United States and hurts
our global competitiveness, particularly for the tourism industry
during the height of the summer travel season. The economic costs
associated with these policies remain significant--according to the
U.S. Travel Association, business travel spending is still 56 percent
below 2019 levels while international travel spending is down 78
percent. Is the Administration considering eliminating or changing the
predeparture testing requirement for travel to the United States? If
not, why does the United States feel this policy is in the best
interest of public health when the majority of countries have
eliminated it?
Answer. As of June 12, 2022, the CDC will no longer require air
passengers traveling from a foreign country to the United States to
show a negative COVID-19 viral test or documentation of recovery from
COVID-19 before they board their flight.
Question 2. The CHIPS Act required the establishment of an
Industrial Advisory Committee to provide you with critical expert
advice from the private sector and academia on microelectronics R&D,
manufacturing and policy. NIST issued a request for nominations in
November 2021. When you do plan to announce the members selected for
this Committee so that they can start helping to guide CHIPS Act
implementation decisions?
Answer. The Department of Commerce and NIST received nominations to
the Industrial Advisory Committee (IAC) from different sectors of the
semiconductor ecosystem, including design, software, equipment,
foundries, integrated device manufacturers, academia, and automotive.
We are currently at the latter stages of vetting the nominees and
expect to make an announcement of the new membership, and inaugural
meeting soon.
Question 3. There are important national security benefits of
having chips manufactured in the U.S. Do you plan to allocate money
from the Commerce Department's financial incentives grant program to
DoD for their secure microelectronics public-private partnership
program, as authorized under the CHIPS Act? Or do you believe DoD
should have its own dedicated funding appropriated by Congress to
develop access to secure, leading-edge and commercially viable chips?
Answer. The Department of Commerce recognizes the important
national security benefits of having semiconductors manufactured in the
U.S. and the unique needs of the Department of Defense. The Department
of Commerce and the Department of Defense are working closely together
to utilize the authorities laid out in section 9902 and 9903 of the
CHIPS Act to ensure that DOD's critical microelectronics manufacturing
needs are addressed, while also ensuring that the economic security
goals of expanding the U.S. share of commercial semiconductor
manufacturing capacity are met.
Question 4. Let's assume we can reach agreement on the competition
package in the near future, what is your best guess as to how long will
it take the Commerce Department to stand up the CHIPS Act financial
incentives grant program and for grant money to begin making its way to
qualified/approved grantees?
Answer. It is our firm belief that any CHIPS Act financial
incentive program should be carried out as quickly and as judiciously
as possible. This will allow the recipients to quickly put the funds to
use and build the Nation's chip manufacturing capacity. The Department
of Commerce is working very hard to do as much advanced planning as we
can prior to the funding of the CHIPS Act to ensure a speedy,
responsible implementation of financial incentives. Commerce released
its CHIPS for America Strategy Paper in early September, noting that
the Department will solicit applications for funding six months after
enactment of the CHIPS and Science Act in February 2023.
Question 5. What are the most important things that the Commerce
Department is planning to focus on and prioritize as you implement new
programs for semiconductor manufacturing and R&D?
Answer. As we plan for the implementation of these programs, one of
the most important things for the Department of Commerce is to make
sure that we listen to industry and the entire semiconductor ecosystem.
The chip shortages and need for R&D are not due to a single factor, so
it is important for us to hear from all stakeholders as we plan these
programs.
To this end, we issued a request for information (RFI) and received
over 200 unique responses from a broad range of the semiconductor
ecosystem including foundries, facilities, software designers,
academia, equipment suppliers, materials suppliers, trade associations,
and professional organizations. We are currently reviewing the
responses and they will inform the planning and implementation of these
programs. Issues that have emerged include improved energy efficiency
of chips, incorporation of security as a design factor, multiple topics
relevant to advanced packaging including the development of substrates,
approaches for heterogeneous integration of memory logic and other
functions, continued advances in semiconductor manufacturing tool
development, automation of processes, and new design capabilities to
name just a few. Workforce has also emerged as a consistent and
critical need that must be addressed to support both our manufacturing
and R&D goals.
Question 6. Under USICA, applicants for CHIPS Act grants need to
satisfy two requirements related to workforce development. First,
applicants must commit to funding ``training and education benefits''
for workers and to expanding ``employment opportunity for economically
disadvantaged individuals.'' And applicants must prove that they have
``secured commitments from regional educational and training entities
and institutions of higher education to provide workforce training,
including programming for training and job placement of economically
disadvantaged individuals.'' In implementing the grant program, how
will the Commerce Department ensure that grantees are both complying
with the U.S. education and training requirements and prioritizing
opportunities for American workers? Will the Commerce Department
prioritize projects that prioritize U.S. workers?
Answer. Workforce is a topic that cuts across all sections of the
CHIPS Act and will be an important element in the overall success of
the law. As you noted, applicants must commit to workforce development
and show that they have secured commitments from regional educational
and training entities and institutions of higher education to provide
workforce training as part of their application or proposal. When
implementing these programs, the Department of Commerce will closely
follow congressional intent and make sure that all awardees meet the
requirements stipulated in the legislation.
Question 7. Is the FCC coordinating with NTIA on its mapping
process? Yes or no?
Answer. Yes.
Question 8. Will you commit to waiting for the FCC to resolve
challenges to its maps before allocating and releasing money?
Answer. The IIJA directs the Assistant Secretary, in coordination
with the FCC, to allocate Broadband Equity, Access, and Deployment
(BEAD) funds amongst the States once the broadband DATA maps are made
public. I believe that accurate mapping data is vital. The challenge
processes for those maps--which include separate processes for States,
consumers, and providers to challenge (i) the map ``Fabric,'' which
identifies the universe of broadband serviceable locations, and (ii)
provider-submitted broadband availability data--will start when the
maps are released and continue indefinitely, ensuring continuous
improvement. We are working closely with our colleagues at the FCC to
determine how best to balance the need to provide certainty regarding
the amounts to be allocated to the States and territories in a timely
manner against the need to allow the FCC, States, and providers to
validate the content of the maps through the challenge process.
Question 9. When do you expect the FCC will complete that process?
Answer. The FCC has stated that its goal is to release the initial
version of the Broadband DATA Maps in November of this year. We are
working closely with our colleagues at the FCC to determine how best to
balance the need to provide certainty regarding the amounts to be
allocated to the States and territories in a timely manner against the
need to allow the FCC, states, and providers to validate the content of
the maps through the challenge processes.
Question 10. During the hearing, you discussed interagency meetings
at the White House with Mitch Landrieu to address coordination of
broadband funds. Please provide more detail on how agencies,
specifically the Federal Communications Commission, the National
Telecommunications and Information Administration, Treasury, and
Agriculture, are coordinating to ensure that funds are not used to
duplicate already-subsidized projects or overbuild existing networks or
projects with existing funding commitments. Can you commit to ensuring
a process that provides a fair opportunity for all technologies to
participate in the Broadband Equity, Access, and Deployment (BEAD)
program?
Answer. Pursuant to the Broadband Interagency Coordination Act,
NTIA staff have been participating in regular meetings with staff from
the FCC and United States Department of Agriculture (USDA) since April
2021, to discuss issues such as how best to prevent duplicative funding
of broadband projects. In May, the FCC, USDA, the Treasury Department,
and NTIA entered into a new Memorandum of Understanding under which
Treasury Department staff would join these regular meetings. These
meetings are held biweekly, but NTIA staff also coordinates with other
agencies' staff members, both formally and informally, on a much more
frequent basis.
Question 11. Will NTIA adopt objective standards by which
applicants for funding will be vetted, before being invited to
participate in the BEAD program, to ensure that they have the
capability necessary to perform?
Answer. The BEAD NOFO sets forth a variety of requirements designed
to ensure that only entities with the technical, operational,
financial, and managerial capability to build and operate the networks
they seek to deploy are able to obtain BEAD funding for such purposes.
For example, prospective subgrantees must certify that they are
financially qualified to meet the obligations associated with a
project, that they will have available funds for all project costs that
exceed the amount of the grant, and that they will comply with all
program requirements, including service milestones. Applicants must
also provide evidence that a bank has committed to issue a standby
letter of credit in the event they win funding and must obtain such a
letter before receiving any such funding. Each prospective subgrantee
must also provide a narrative describing the prospective subgrantee's
readiness to manage a broadband services network, as well as resumes
for key personnel and organizational charts. Likewise, prospective
subgrantees must submit a network design, diagram, project costs,
build-out timeline and milestones for project implementation, and a
capital investment schedule evidencing complete build-out and the
initiation of service within four years of the date on which the entity
receives the subgrant, all certified by a professional engineer,
stating that the proposed network can deliver broadband service that
meets the requisite performance requirements to all locations served by
the project. Prospective subgrantees also must certify that they
possess the operational capability to qualify to complete, operate, and
maintain the project they propose to build and submit documentation
evidencing their ability to do so.
Question 12. Will the NTIA commit to ensuring that broadband
providers pursuing Infrastructure Investment and Jobs Act (IIJA)
funding will not be favored based on their corporate form or
organizational status?
Answer. Consistent with the IIJA's terms, the NOFO states that, in
awarding subgrants for the deployment of a broadband network using
grant funds, an eligible entity (State or territory) may not exclude
cooperatives, nonprofit organizations, public-private partnerships,
private companies, public or private utilities, public utility
districts, or local governments (``potential providers'') from
eligibility for grant funds. The NOFO does not favor any type of
provider over any other on the basis of its corporate form or
organizational status.
Question 13. How will NTIA interpret and administer the ``priority
broadband projects'' provisions for the BEAD program?
Answer. The BEAD NOFO states that ``Priority Broadband Projects''
are those that use end-to-end fiber-optic architecture, because only
these projects will meet the statutory criteria--that is, will ``ensure
that the network built by the project can easily scale speeds over time
to . . . meet the evolving connectivity needs of households and
businesses'' and ``support the deployment of 5G, successor wireless
technologies, and other advanced services.'' The NOFO directs each
eligible entity to design a project selection process that (with
limited exceptions) gives first priority to these ``Priority Broadband
Projects'' where a potential provider has proposed service using end-
to-end fiber. Where no prospective subgrantee proposes to deploy an
end-to-end fiber solution (i.e., fiber-to-the-home, or FTTH), the
eligible entity remains free to choose among proposals using other
technologies that do not extend fiber all the way to the end user, such
as fiber-to-the-curb (FTTC) or fiber-to-the-neighborhood (FTTN).
Question 14. How does the NTIA plan to address supply chain issues
that may increase project costs or slow down the timeline for providers
to complete a project in order to obtain equipment needed to build the
networks?
Answer. We understand the concerns about how supply chain
disruptions might impact timely deployment of high-speed networks. The
Administration has been working directly with manufacturers to make
sure that grant recipients have the resources they need. The Department
of Commerce has taken a leading role in addressing supply chain
challenges facing our Nation. The Department and NTIA are well
positioned to engage with the telecommunications sector and
manufacturers to ensure that there is sufficient supply of fiber,
equipment, and other necessary materials to implement the broadband
programs. We intend to leverage the resources and expertise within the
Department and NTIA and to work closely with industrial stakeholders to
address this critical issue, while at the same time incentivizing
increased use of domestic supply sources.
Question 15. Will NTIA consider waiving Buy America requirements,
which it did in 2009 for the Broadband Technologies Opportunity
Program, if such requirements create a bottleneck for the deployment of
broadband?
Answer. NTIA is looking carefully at whether to waive Buy American
requirements in connection with the BEAD Program. Any use of waivers
will be narrowly tailored and time-limited, to ensure that network
components that can feasibly and economically be produced in the United
States are produced here, and that exceptions are only made where
necessary to achieve our broadband deployment goals. We will also be
careful to send appropriate market signals on the importance of
increasing opportunities for domestic suppliers.
Question 16. Commerce's Budget Request proposes $36.2 million for
BIS to implement the regulatory regime proposed under the Securing the
Information and Communication Technology and Services (ICTS) Supply
Chain EO (13873). Given this request, it seems clear that Commerce
intends to proceed with the rulemaking. Can you further explain how the
Commerce Department plans to use the authorities granted to it under
the rulemaking, the status of the licensing program, and whether this
amount will allocate sufficient resources to investigate transactions
that the Commerce Dept. is interested in?
Answer. U.S. businesses and governments at all levels rely heavily
on Information and Communications Technology and Services (ICTS), which
underpin the U.S. economy; support critical infrastructure and
emergency services; and facilitate the Nation's ability to store,
process, and transmit vast amounts of data. Former President Trump
signed Executive Order 13873 to establish a process at Commerce to
ensure secure U.S. supply chains for ICTS, originally placing that
review function in the Secretary's office. Executive Order 14034
clarified that the term ``ICTS'' includes connected software
applications and set out criteria to evaluate ICTS transactions that
include connected software applications. On November 26, 2021, the
Commerce Department published a notice of proposed rulemaking to add
the definition and accompanying criteria to 15 C.F.R. part 7. The
Department requested public comments by January 2022 and has reviewed
and adjudicated those comments. Accordingly, BIS is drafting a final
rule to incorporate the terms and criteria into existing regulations.
Over the past year the team has been working to develop the legal,
regulatory, enforcement and policy regime to make sure that Commerce
can effectively reduce and manage risks posed by foreign adversaries,
such as Russia and China, to the ICTS supply chain here in the United
States. The FY 2022 appropriations bill has helped formally consolidate
the ICTS program at BIS, and that transition work is ongoing. The
President's Budget request will help build on that groundwork and
provide the necessary resources to ramp up this important work, and I
hope the Committee will fully fund it. Our FY 2023 Budget requests
$36.2M and 114 new positions for the ICTS program within BIS, which is
better situated to conduct these reviews.
The budget request will allow us to build the program from the
ground up and make strategic investments to develop a new regulatory,
policy and enforcement program to address the risks to national
security posed by dangerous ICTS transactions. We will hire people to
defend our domestic ICTS supply chain--attorneys, analysts, subject
matter experts, investigators, and auditors. The team will:
Review (and investigate) ICTS transactions;
Draft and implement regulations;
Ensure compliance with mitigation agreements;
Create and administer a new pre-clearance program for ICTS
transactions; and
Assist with litigation flowing from this work.
In practice, if the Department determines that an ICTS transaction
poses an undue or unacceptable risk, the Department may prohibit the
transaction or modify it (i.e., subject that transaction to mitigation
measures). Prohibitions or mitigation measures may be imposed on a
single ICTS transaction or on a category of ICTS transactions, through
individualized determinations targeted at specific companies and
following processes specified in the Department's implementing
regulations. The Department will consult regularly with specified
agency heads before making a determination on a particular ICTS
transaction or category of transactions.
Question 17. People who lose their homes in a storm or flooding
event may not receive compensation, even with flood insurance, if the
cause of damage is undetermined between water and wind hazards. This
``indeterminate loss'' classification can leave people without
financial support after a serious disaster. The COASTAL Act required
NOAA to work with FEMA to provide detailed post-storm data that will
prevent more ``indeterminate loss'' classifications. What is the
current impact on individuals when their home is completely destroyed
in an ``indeterminate'' loss? Do you anticipate these determinations
occurring in future storms?
Answer. NOAA's work for the COASTAL Act is substantially complete
and we are working with FEMA to begin the validation phase. The NOAA
work will feed post-storm data for winds, water, and waves into FEMA's
model for determining risk. NOAA has done excellent work determining
the weather and water related parameters in a post-storm environment
for these devastating storms and looks forward to collaborating with
FEMA to help address the issue of ``indeterminant loss.''
Question 18. The President's Budget eliminates COASTAL Act funding.
Wouldn't suspending work on the COASTAL Act, along with severing
existing public and private partnerships, set the program back in terms
of data quality and future research capabilities?
Answer. As directed by the COASTAL Act, NOAA developed the Named
Storm Event Model (NSEM) and the Coastal Wind and Water Event Database
(CWWED), which provide information that FEMA will use in their models
to identify ``indeterminate loss'' classifications. We have also
entered into agreements with universities and private sector partners
to obtain critical information from storms that will impact land and
possibly result in ``indeterminate losses.'' FEMA has advised that they
will not be ready to incorporate NOAA information into their models for
a few years, which makes sustaining the program in a holding pattern an
inefficient use of taxpayer funds. The work done for the COASTAL Act
has led to improvements in NOAA operational model predictions of waves,
water levels, and winds. NOAA will archive all of its work completed
for the COASTAL Act, including the datasets that were used for
developing NSEM and CWWED. This information can be used for further
research.
Question 19. Why is the COASTAL Act being suspended when the
development of the Named Storm Event Model and Coastal Wind and Water
Event Database is 92 percent complete? What further information and
support do you require from FEMA and other agencies to complete the
COASTAL Act?
Answer. NOAA's work for the COASTAL Act is substantially complete,
except for the final validation and transition phase, which constitutes
the remaining 8percent of work, and is appropriate to be completed
closer to the time FEMA is ready to integrate our information.
We developed the NSEM and the CWWED and are ready to transition the
program into operations. NOAA will work with FEMA to incorporate our
information into their models to identify ``indeterminate loss''
classifications.
Question 20. Specialty aircraft that fly into storms, known as
Hurricane Hunters, provide critical atmospheric and storm data to NOAA
that supports hurricane forecasting and modeling. NOAA's P-3s are
nearing the end of their service life. The reduced reliability and
effectiveness of these aircraft will lead to a significant loss of
hurricane forecast data relied that is relied on by coastal communities
and emergency managers throughout the country. Will there be a
detrimental impact to forecasts if these planes are not replaced?
Answer. Yes. There would be a detrimental impact if those data were
not available. We will need new hurricane hunters in the future and
NOAA is developing a plan to address this requirement, which is being
finalized.
Question 21. The 2019 NOAA Aircraft Plan, ``Building NOAA's 21st
Century Fleet,'' says that ``the observations and forecasting activity
will be detrimentally impacted if aircraft are not sustained'' and
``this significant loss of capability will negatively impact NOAA's
ability to provide accurate forecasts critical for protection of lives,
property, and the national economy.'' Why are you suspending the P-3
recapitalization program if these aircrafts are so crucial for
protecting life, property, and the economy? We have been told an
updated aircraft plan is forthcoming. Can you provide information on
when that will be delivered?
Answer. The updated Aircraft Recapitalization Plan is in the final
stages of review and we are aiming to deliver it to Congress soon.
Question 22. A toxic workplace culture can put the scientific
enterprise and the stewardship of our Nation's natural resources in
jeopardy. As was seen most recently at the Office of Science and
Technology Policy, leadership within the science agencies sets the tone
for the rest of the workforce. We have heard that there have been
issues of disrespect and a toxic work environment within NOAA. How are
you and Dr. Spinrad ensuring that there is a culture of respect in the
workplace, particularly for women and minorities? How do you and Dr.
Spinrad plan to ensure that the leadership of women and minorities is
given equal respect at NOAA?
Answer. NOAA is committed to creating a workplace environment that
fosters inclusion and belonging for all members of the workforce. To
that end, NOAA has recently developed a set of values informed by its
employee resource groups and other members of the workforce that focus
on creating a respectful environment for all members. Likewise, many
diversity, equity, inclusion, and accessibility efforts, activities and
initiatives are taking place throughout the agency. Additionally, the
NOAA Administrator's leadership team is the most diverse in NOAA
history. This includes, for the first time, a Senior Advisor on Equity
and a Senior Advisor on Tribal Engagement in his office.
In March 2021, NOAA launched a workforce culture survey to gather
critical data on the prevalence of misconduct and discrimination. This
survey is the first-of-its-kind to examine this information through an
intersectional lens of race, gender, and sexual orientation. From that
survey, line offices will work with subject matter experts to identify
ways to address the findings and foster a culture where employees can
thrive. In addition, NOAA implemented mandatory training for Federal
employees (supervisor and non-supervisor) on the prevention of
harassment and discrimination. NOAA also has partnered with employee
resource groups to deliver monthly webinars on various topics infused
with intersectionality and social justice principles. These are just a
few examples of how NOAA and the Department are seeking to create a
diverse and inclusive workforce and agency culture that we hope will
outlast our tenure.
Question 23. Does the Department of Commerce budget reflect the
anticipated need for staff to efficiently process requests from energy
companies to obtain MMPA authorizations?
Answer. The FY23 DOC budget includes an increase of $2.5 million to
process requests for offshore wind Marine Mammal Protection Act (MMPA)
authorizations as well as Endangered Species Act (ESA) section 7
consultations. The FY23 DOC budget also includes an increase of $5.0
million to address ESA section 7 consultations and MMPA authorizations
nationwide--beyond just offshore wind, including requests from non-wind
energy companies and other entities carrying out projects under the
2021 Infrastructure Act. NMFS currently lacks staff capacity to keep up
with our authorization workload demand; however, funding both of these
requests would greatly help ensure we have the staff required to focus
on multiple high priority requests, such as oil and gas development and
offshore wind, for authorizations that we anticipate in FY23.
Question 24. In the Gulf of Mexico, the Incidental Take Rule (ITR),
as written, has resulted in a number of limitations because it was
based on mistaken assumptions and faulty science, which NMFS itself has
recognized. This has proven to be an impediment to the development of
domestic energy resources when our nations and ally's energy security
is of paramount concern. Do you have the right resourcing and staffing
in place to expedite the revision of the Rule allowing critical seismic
surveys to occur when they are needed the most? Is the Department aware
of delays to on-lease development due to an inadequate and
scientifically deficient ITR and do you have any plans to expedite
corrections to the deficient ITR? Are additional resources needed to
correct the limits that are not reflective of the best available
scientific information?
Answer. Yes, the Department is aware of delays with on-lease
development and additional resources would be helpful to revise the
rule and address outstanding Incidental Harassment Authorization (IHA)
applications.
Oil and gas activities in the Gulf of Mexico have the potential to
``harass'' marine mammals and if so, they are prohibited unless the
project sponsor received a form of incidental harassment authorization
under the Marine Mammal Protection Act. In order to create
efficiencies, NOAA issued a programmatic ``Incidental Take Rule'' (ITR)
in 2021 and adopted an expedited process for such authorizations. The
programmatic rule allowed NOAA to issue 25 authorizations under the
``harassment caps'' established in the programmatic process.
The programmatic rule was based on estimates of the extent of
activity and associated marine mammal interactions provided by the
Bureau of Ocean and Energy Management (BOEM). Late in 2021, the
Department became aware that BOEM had underestimated the amount of
potential take and we are aware of the delays to on-lease development
that have followed. The result was that some (but not all) oil and gas
projects for 2022 could not come within the programmatic rule because
doing so would exceed the harassment cap for killer whale harassment.
Those projects could still potentially be authorized on an individual
basis but that process takes longer.
BOEM provided revised estimates and NOAA is processing a revision
to the authorization process. NOAA hopes to propose a revised
determination soon, to be followed by a final determination. At the
same time, NOAA continues to process harassment authorizations under
the programmatic rule for those activities that will not exceed the
current harassment cap. NOAA has recently issued three additional
authorizations that will not exceed the current harassment cap and is
processing a number of others. The current and increasing IHA workload
does require more resources than currently available to NOAA for these
requests, and the 2023 Budget requests funding to support these
activities.
Question 25. In January, the Department released a report
summarizing the results of a Request for Information (RFI) on the
semiconductor supply chain. One of the key findings focused on those
chips facing the biggest disruptions, specifically logic chips, analog
chips, and optoelectronics chips. As noted in the report, many of these
chips are used in critical industries like autos, broadband and medical
devices. Based on these results, the report stated that the Commerce
Department would begin to engage industry ``on node-specific problem-
solving in the coming weeks. . .'' How is the Department engaging with
particular industries on this node-specific problem-solving and what is
the status of that work? How will this effort inform the Department's
efforts to address the semiconductor shortage moving forward?
Answer. As part of our planning for the implementation of the CHIPS
and Science Act, the Department of Commerce is conducting a broad
outreach to the semiconductor ecosystem to ensure that we receive input
from stakeholders. These include companies who manufacture chips for
critical industries such as automotive, health care, aerospace,
communication equipment, and consumer goods using logic chips, analog
chips, and optoelectronics chips. The Department of Commerce, with the
assistance of NIST, also initiated a request for information (RFI) and
received over 200 unique responses from a broad swath of the
semiconductor ecosystem including foundries, facilities, design
software, academia, equipment suppliers, materials suppliers, trade
associations, and professional organizations. We are currently
reviewing the responses and they will inform the planning of these
programs.
In addition to the RFI, the Department of Commerce has conducted
more than 50 meetings with industry groups and professional
organizations, including organizations that are focused on both
leading-edge nodes and mature node semiconductors, and analog chips.
The input received from all industry sectors will be invaluable in
planning the implementation of the CHIPS and Science Act.
Question 26. Funding for the CHIPS Act provisions is unlikely to
resolve the near-term capacity limitations that continue to constrain
production across multiple sectors. The Department has identified the
importance of transparency across the semiconductor supply chain--from
producers to end-users--to help navigate the near-term demand
challenge. What steps are you taking to address this question of
transparency and how are you engaging with industry to drive progress
on this issue?
Answer. The Biden-Harris Administration conducted 100-day reviews
of the supply chains for four critical products under Executive Order
14017. The Report describes the state of these supply chains and steps
that should be taken to build resilient supply chains and revitalize
America's manufacturing sector.
The Department of Commerce is using its partnership with industry
to facilitate information flow between semiconductor producers and
suppliers and end-users and leveraging its convening power, including
through its advisory committees, to bring stakeholders together to
promote improved data sharing and transparency.
In addition, the Department of Commerce, with the assistance of
NIST, issued a request for information (RFI) earlier this year
soliciting information that will inform the implementation of the CHIPS
Act. The Department received over 200 unique responses from a broad
swath of the semiconductor ecosystem including foundries, facilities,
design software, academia, equipment suppliers, materials suppliers,
trade associations, and professional organizations. We are currently
reviewing the responses and they will inform the planning these
programs.
The Department of Commerce also conducted more than 50 meetings
with industry groups and RFI information sessions and workshops, to
make sure different parts of the industry are aware of the CHIPS for
America Act and how they can help with the planning of these programs.
In order to help the Department move forward on semiconductors, the
Department urges the Congress to fund the 2023 President's Budget
request for an additional $10.85 million and 38 positions at ITA's
Industry and Analysis (I&A) business unit. I&A plays a central role in
identifying risks and opportunities for the growth of U.S. industries
and has a unique strength in understanding industries and their global
supply chains. Their industry relationships and analytical work inform
and direct many of the Administration's supply chain activities,
including international and industry engagements for semiconductors,
for crisis response, such as for Russia-Ukraine, and long-term
strategic and policy efforts to counter risks posed by foreign
adversaries, such as the People's Republic of China's (PRC) civil-
military fusion and their efforts to exploit U.S. technological
breakthroughs and corner the market in specific supply chains, as it
has with the solar industry. With the FY 2023 request, I&A can add
value on existing lines of effort, including understanding and
advancing strategies and specific recommendations on semiconductors,
critical minerals, and electric vehicle batteries, as well as leading
international engagements.
Question 27. We know that there are applications using quantum and
quantum-hybrid technology which are tackling problems in manufacturing,
logistics, drug discovery, etc. How is the Department of Commerce
thinking about the use of quantum and quantum-hybrid technology and its
role in supporting the development of this technology into applications
that benefit the public?
Answer. Quantum and quantum-hybrid technologies are critical and
emerging areas that are important to our future technological progress;
however, they are also areas where the U.S. can lead the rest of the
world. Through research performed at NIST, the Department of Commerce
is working to ensure that new developments in quantum technologies
benefit the public at large.
As an example, the NIST-on-a-Chip research program is developing
quantum-based technologies that take measurement services out of the
lab and directly to the end user. These include technologies for
measuring magnetic and electric fields; biochemical sensing, size, and
dimensions; current; voltage; and resistance. All of these measurement
services are critical to the development and success of quantum
technology.
NIST also supports the Quantum Economic Development Consortium
(QED-C). The QED-C is a consortium of stakeholders whose purpose is to
enable and grow a robust commercial quantum-based industry and
associated supply chain in the United States. The activities of the
QED-C include helping companies with quantum-related technology needs
find suppliers, customers and partners; providing a forum for quantum
jobs; developing industry-relevant standards; and working on industry-
identified projects where some of the knowledge we've developed at NIST
is transferred to member companies. There are currently more than 200
QED-C participating organizations, including members from the
automotive, aerospace, finance, and software industries, universities;
government agencies; small and medium-sized companies, and other
stakeholders.
______
Response to Written Questions Submitted by Hon. Deb Fischer to
Hon. Gina M. Raimondo
Question 1. With significant sums of taxpayer dollars going to the
National Telecommunications and Information Administration (NTIA) for
broadband deployment pursuant to the bipartisan infrastructure law,
agency accountability is critical. Down the road, we will not be able
to say the $42.5 billion in Broadband Equity, Access, and Deployment
(BEAD) program funding was spent in the best possible way, unless we
have the right evaluation tools to do so. Does NTIA intend to have a
standardized method to evaluate states' progress under the BEAD
broadband deployment program?
Answer. Yes. Both eligible entities and subgrantees will be
required to comply with robust reporting requirements. In addition to
the reporting requirements found in 2 C.F.R. part 200, NTIA will
provide additional reporting instructions in connection with the
requirements set forth in section VII.E of the BEAD Notice of Funding
Opportunity (NOFO), including details on the manner and format that
Eligible Entities will be required to report information in support of
Federal agency obligations under the ACCESS BROADBAND Act, (47 U.S.C.
Sec. 1307) and Section 60105 of the Infrastructure Investment and Jobs
Act (IIJA).
Question 2. Does NTIA intend to make all BEAD program submissions
publicly available so that we can fully review what has been submitted,
whether bids were competitive, and which broadband plans ultimately win
out?
Answer. NTIA will comply to the fullest extent possible with the
robust reporting requirements for eligible entities and subgrantees
within IIJA that and requires NTIA, the Federal Communications
Commission (FCC), and other agencies to coordinate to make information
regarding Federal broadband funding, low-cost plans, and other aspects
of the BEAD Program readily available to and understandable by the
public. The BEAD NOFO also reminds potential applicants that recipients
of Department of Commerce and NTIA grants also should be cognizant of
the access to records requirements set forth at 2 C.F.R. Sec. 200.337.
Question 3. In November, President Biden issued an Executive Order
to establish a task force for the implementation of the bipartisan
infrastructure law. Though this task force was created for
implementation, it was not part of the legislative statute. During the
hearing, you referenced the task force's meetings. Could you please
provide more details about the Commerce Department's work and
coordination with this task force?
Answer. President Biden established the White House Infrastructure
Implementation Task Force to support agency implementation of the
Bipartisan Infrastructure Law (BIL). The task force looks to break down
barriers and drive implementation across all levels of government. As a
member of the Task Force, I work with the White House Infrastructure
Implementation Coordinator and my fellow cabinet secretaries to align
implementation with the Administration's priorities, share lessons
learned, and tackle cross-cutting efforts like cybersecurity and rural
outreach. Where possible, I bring the unique resources of the
Department of Commerce to bear in helping the Administration fulfill
the promise of this historic legislation.
Question 4. What has been accomplished since the creation of the
task force?
Answer. Since established in November, the Task Force has a number
of accomplishments that support implementation. The Task Force has
focused on promoting opportunities and increasing participation by
releasing resources such as the BIL guidebook, the rural playbook, and
a catalog of technical assistance resources for potential funding
recipients. Additionally, the Task Force coordinated and participated
in the Rural Outreach tour to ensure rural communities can take
advantage of the opportunities the BIL provides. And, importantly, the
Task Force coordinates implementation of related programs across the
government, such as broadband initiatives. This coordination helped the
Department of Commerce meet its statutory deadline for releasing the
notice of funding opportunity for its broadband programs while ensuring
alignment with other related programs at USDA and FCC.
Question 5. How frequently does it meet? How many meetings have
occurred to date?
Answer. The Task Force currently meets monthly; however, the staff
implementation coordinators meet more frequently.
Question 6. You noted there are separate meetings to discuss
broadband matters. Who is present in these meetings?
Answer. The National Economic Council has been hosting regular
meetings to coordinate Federal agencies on broadband. Alan Davidson,
Assistant Secretary of Commerce for Communications and Information,
represents the Department of Commerce in these meetings, and co-leads
them with the National Economic Council. Other attendees include the
Office of the Vice President, the Domestic Policy Council, Office of
Management and Budget, the FCC, Department of the Treasury, USDA, and
the Department of the Interior.
Question 7. What considerations has the task force discussed,
agreed upon, or disagreed about, related to distribution of the
broadband funding by NTIA?
Answer. The Task Force was designed to ensure coordination on
matters of policy. It did not address issues of funding distribution,
which are largely dictated by statute.
Question 8. How will the task force's decision making affect NTIA's
implementation of the law?
Answer. The Task Force was designed to ensure coordination on
matters of policy but did not have decision making authority. The NOFO
is the result of decision-making by the Assistant Secretary for
Communications and Information, informed by input from me, coordination
and consultation with the FCC and other agencies as directed by
statute, and the Office of Information and Regulatory Affairs (OIRA)
review process. Additionally, the NOFO reflected input gained through
NTIA's Request for Comments, listening sessions, and stakeholder
engagement including with governors, mayors, industry, and public
interest organizations.
______
Response to Written Questions Submitted by Hon. Dan Sullivan to
Hon. Gina M. Raimondo
Question 1. Amid delays associated with the rollout of Tribal
Broadband Connectivity Program (TBCP) awards, certain Tribal applicants
are concerned that inflation occurring in the interim may have
substantially raised the costs associated with the initially-proposed
project. What steps are the Department and NTIA taking to ``inflation-
proof'' applications so that applicants are not unfairly penalized for
witnessed inflation that may have occurred since submitting a proposal?
Answer. Section 905(c)(7) of the Consolidated Appropriations Act,
2021, provides that a Tribe awarded a TBCP grant may enter into
contracts and subgrants after ensuring, among other things, that the
contractor has the financial capacity to meet the obligations of the
project and the requirements of Section 905(c) of the Consolidated
Appropriations Act, 2021. Infrastructure Investment and Jobs Act (IIJA)
section 60102(g)(2)(A)(ii) and the Broadband Equity, Access, and
Deployment (BEAD) Notice of Funding Opportunity (NOFO) similarly
require states and territories to ensure that prospective subgrantees
have the managerial and financial capacity to meet the commitments of
the subgrant and any requirements of the Program. NTIA has been working
closely with applicants to ensure that potential projects and
subgrantees meet these requirements, and permitting Tribal applicants
to adjust their project budgets to accommodate external factors like
inflation so long as such adjustments do not result in a net increase
in the amount requested in the application.
Question 2. As you know, the BEAD program offers excellent
opportunities for our states to bring high speed broadband services to
long-neglected areas. However, potential issues may extend beyond
states making, and NTIA approving, wise project awards. There may well
be additional challenges related to project construction schedules--
especially in Alaska with our narrow seasonal construction window.
Whether the projects may be delayed as a result of permitting
approvals, environmental sign-offs, or any number of other project
implementation hold-ups, many of them related to Federal mandates, how
do you see your department's role in facilitating smooth project
completions?
Answer. NTIA is committed to working closely with, and providing
support and technical assistance to, eligible entities to help ensure
that their subgrantees are capable of and prepared to meet the
timelines and goals established for the program. An eligible entity,
including Alaska, may extend the four-year network deployment deadline
for subgrantees by not more than one year if: (1) the subgrantee has a
specific plan for use of the grant funds, with project completion
expected by a specific date not more than one year after the four-year
deadline; (2) the construction project is underway; or (3) extenuating
circumstances require an extension of time to allow the project to be
completed. In addition, extensions for eligible entities for any part
of the process may be granted at the sole discretion of the Assistant
Secretary when extenuating circumstances demonstrate that additional
time will support the overall goals of the BEAD Program.
Question 3. The BEAD program sets aside a significant amount of
funding for ``high cost areas'' to help bridge the digital divide. As
you know, there is no place more ``high cost'' than Alaska. The statute
includes factors to be taken into consideration in determining what
areas qualify, including remoteness, lack of population density, and
unique topography--all of which especially describe Alaska. The statute
also gives the Assistant Secretary discretion to rely on ``any other
factor'' in determining which areas are ``high cost'' in a state and
therefore eligible to receive additional resources. Alaska has
historically come up short exactly because we are so high cost. This
set aside is an opportunity to direct resources to those areas of the
country with the highest costs to build and provide service. How are
the Department and NTIA thinking about this high cost set aside as it
relates to Alaska?
Answer. NTIA has not yet determined how to identify high-cost areas
for purposes of BEAD funding allocations but is actively considering
the factors enumerated in the statute.
Question 4. What assurances can you give that the Department and
NTIA are committed to ensuring that Alaska gets the sizeable resources
needed to connect every Alaskan with affordable broadband service?
Answer. Recognizing broadband's fundamental role in today's society
and its centrality to our Nation's continued health and prosperity,
President Biden has pledged to make sure that every American has access
to reliable, affordable, high-speed internet. The Department of
Commerce and NTIA are fully committed to fulfilling that pledge in all
areas of the country--including Alaska.
Question 5. Alaska ranks absolutely last in terms of broadband
access in the United States. Being home to 229 federally recognized
tribal governments, some of which reside in Alaska's most remote
communities that can only be accessed by plane or ferry, the need for
Federal investments in broadband infrastructure has only been
exacerbated by the COVID-19 pandemic. I recently heard from some of our
communities that they have been paying roughly $1,000 per month just to
make sure their kids have Internet access necessary to attend school,
they can continue working, and elders can access healthcare. Despite
our demonstrated need, we continue to face hurdles in building out
broadband infrastructure, largely in part because of the vast and
unique geographical features of our state. Some of Alaska's Tribes have
broadband service areas covering tens of thousands of square miles. To
ensure they are able to bring high speed, reliable Internet to the
different village communities they serve, Federal funding must account
for the impact of a changing permafrost, distance between village
communities, and other factors unique to Alaska. In reviewing
applications for TBCP and other NTIA funds, how will the Department
factor in the size of a tribe's service delivery area, the unique
terrain and other geographical barriers that drive up broadband
infrastructure costs?
Answer. The TBCP NOFO and application review process were designed
to ensure that applications to serve particularly remote and
challenging locations are not penalized during the review process.
Specifically, the TBCP NOFO establishes objective evaluation criteria
for use during the 3 phases of review for broadband infrastructure
deployment projects. These criteria preference applications that seek
to serve those communities demonstrating the highest level of need for
the deployment of broadband infrastructure in the proposed service area
on eligible lands where tribal citizens reside. These criteria also
include an assessment of each proposal's technical approach and related
network planning, capacity and performance. Additionally, reviewers
must take into account, among other things, the geographic location of
the proposed project, any limitations on the time period available for
construction, and whether the applicant is requesting an extension of
time to complete the proposed broadband infrastructure deployment
projects.
Question 6. Additionally, the TBCP application provided some level
of priority consideration for regional applications. How does this
priority consideration factor into NTIA's decision to fund a project?
Answer. It is important to clarify that the TBCP NOFO did not give
priority to regional applications. However, NTIA encouraged in the TBCP
NOFO a regional approach to Broadband Infrastructure Deployment
Projects through the submission of applications on behalf of a
consortium or of multiple Tribal partners (each of which was required
to be an eligible entity) that proposed to cover regional
infrastructure gaps or other eligible projects in the most cost-
effective manner, while providing access to those communities that meet
the definition of ``unserved'' per the statute. Similarly, NTIA
encouraged eligible entities to collaborate or participate as part of a
consortium for Broadband Use and Adoption Projects.
Question 7. NOAA fisheries surveys are the primary data source to
manage the Nation's commercial fisheries, the majority of which occur
off Alaska. I continue to be concerned about having adequate funding to
maintain the entire footprint of surveys across Alaska, including the
Northern Bering Sea, which has become increasingly important as fish
and crab stocks move north. In addition, NOAA surveys have been
cancelled and delayed due to mechanical issues with the Oscar Dyson.
Ship time is critical to stock assessments for the Nation's largest
fishery--pollock in both the Bering Sea and the Gulf of Alaska. What is
NOAA doing to ensure we maintain a full complement of surveys, as well
as have established back-up plans when there are contingencies?
Answer. While we cannot predict mechanical failures, we are
proactively inspecting vessels and awarding planned maintenance
contracts in advance. The Biden-Harris Administration's FY23 budget
request for NOAA Fisheries includes an increase of $3.3 million to
continue to build the agency's capacity for climate-informed fisheries
assessments and management strategies and for survey and data
collection activities. The FY23 budget includes new investments for
expansion of surveys, sampling, and analysis capabilities to better
track species that are shifting, expanding, and contracting their
distributions due to climate change, while working to address the
rising costs of surveys to ensure we maintain levels performed in the
recent past. NOAA appreciates the additional funding provided in FY22
appropriations and is on target to complete most of its scheduled
fishery's surveys. Surveys are critical to the National Marine
Fisheries Service (NMFS) mission in all of our regions. NMFS relies on
Office of Marine and Aviation Operations (OMAO) vessels for many of our
survey activities and we also partner with the fishing industry and
others to charter vessels for some of our highest priority surveys. Our
cooperative research with the fishing industry improves our science as
we are able to benefit from their experience and knowledge.
Additionally, NMFS continues to invest in automated and remote sensing
systems to augment our surveys. We also are conducting studies to
investigate ways to reduce survey effort while maintaining the
certainty and quality of our stock assessments. We recognize the
importance of fisheries and fisheries surveys to Alaska and recognize
the survey needs are increasing in Alaska, expanding the footprint of
fisheries is one example. We continue to work with OMAO to make full
use of NOAA supported vessels.
Question 8. How is NOAA ensuring that ship time for Federal surveys
in Alaska is not diverted to other NOAA interests such as wind energy
or marine mammal surveys in other regions?
Answer. Days at Sea are carefully planned well in advance through
two layers of approval via the Fleet Working Group and NOAA Fleet
Council. Priority is given to NOAA projects as prioritized by each line
office and agreed upon by all NOAA Line Offices.
NMFS has developed an extensive Strategic Resource Management
practice to ensure that the right resources are put in the right places
to support our highest priority activities. Our priorities are outlined
in 5-Year Strategic Plans and Annual Guidance Memoranda. All NMFS
Science Centers participate annually in a regional activity
prioritization process to inform national level resource allocation.
Question 9. The national marine sanctuary (NMS) program has been
given new attention given the interest in new conservation areas under
this administration. This NOAA program strongly emphasizes a locally
driven sanctuary nomination process, stating that for a sanctuary to be
successful, it must have the support and involvement of the communities
that border and rely on it. What are the specific criteria NOAA's NMS
office uses to determine whether a proposal for nomination and/or a
sanctuary designation have the necessary broad local community support?
Answer. In evaluating sanctuary nominations, NOAA uses four
national significance criteria and seven management considerations in
deciding whether to add a sanctuary nomination to the inventory of
successful nominations, as described in the Final Rule ``Re-
Establishing the Sanctuary Nomination Process.'' See 79 Fed. Reg.
33,851 (June 13, 2014). Management consideration number 7 in Section
IIIB of the Final Rule specifically defines community-based support as
coming from a '' broad range of interests, such as: individuals or
locally-based groups (e.g., friends of group, chamber of commerce);
local, Tribal, state, or national elected officials; or topic-based
stakeholder groups, at the local, regional or national level (e.g., a
local chapter of an environmental organization, a regionally-based
fishing group, a national-level recreation or tourism organization,
academia or science-based group, or an industry association).'' Id. At
33,854. NOAA's final evaluation is then based on a qualitative analysis
of a nomination's ability to demonstrate the relevant national
significance criteria and management considerations, with particular
emphasis on this management consideration number 7 to ensure community-
based support. Once NOAA initiates a sanctuary designation process,
NOAA solicits public comment at various stages of the process through
public meetings and notices in the Federal Register. NOAA strongly
considers input from the local community in formulating a new
sanctuary's environmental impact statement, management plan, and
regulations.
Question 10. How does NMS weigh local community views relative to
other criteria?
Answer. In both evaluating sanctuary nominations and conducting
sanctuary designation processes, NOAA qualitatively considers community
views in concert with multiple other criteria and standards, including
those specified in the National Marine Sanctuary Act. NOAA requires all
nominations to include information addressing all seven management
considerations, with special emphasis on consideration number 7,
describing community-based support.
Question 11. Alaska has natural resources and geography that fuel
the national economy, support national defense, and astonish hundreds
of thousands of visitors every year; but it has little commercial
agriculture or manufacturing to feed and supply Alaska consumer needs.
Residents of my remote state must ship in most of the food, fuel and
goods that are consumed in Alaska. Port of Alaska is my state's primary
inbound cargo facility. It handles three-quarters of all non-fuel cargo
shipped into Alaska and distributed to final destinations statewide.
Ninety percent of Alaskans regularly consume food, fuel and goods
shipped across Port of Alaska's docks. The Department of Defense relies
on Port of Alaska in Anchorage as a designated commercial strategic
seaport to defend our Nation and project U.S. forces around the world.
And Ted Stevens Anchorage International Airport--the fourth busiest
cargo airport in the world--fuels international commerce with Jet A-1
shipped through Port of Alaska. Unfortunately, this port's half-century
old docks have exceeded their useful life and are at risk of sudden
failure and collapse should another large earthquake strike
Southcentral Alaska--which is a question of ``when'' not ``if.''
Alaska's small population size and density cannot economically support
more than one major, inbound seaport, and cargo logistics mean Alaska
can only afford to maintain about one week of food security. The Port
of Alaska Modernization Program aims to rebuild Anchorage's cargo docks
and stabilize Port uplands to maintain safe, reliable, and economic
cargo operations into the foreseeable future. Project planners have
discovered that permitting is the biggest challenge to replacing
Anchorage's failing docks in a timely fashion. National Marine
Fisheries Service (NMFS) proposed a five-year rule making process for
Marine Mammal Protection Act (MMPA) compliance. I understand that there
is a MMPA exemption for military readiness activities, but it may not
be applicable to this Port project and the exemption requires
consultation between the Secretaries of Defense and Commerce. Given the
state of the Port, the extreme risk to Alaska's food supply chain from
the next major earthquake, and the potential national defense impacts
Port of Alaska failure--are there other avenues to streamline the
permitting process?
Answer. The Port of Alaska is critical to Alaska's economy and
livelihoods, making this a top priority across the state. The MMPA
provides only two pathways for authorizing incidental take associated
with projects like the Port of Alaska. An applicant can apply for
either an Incidental Harassment Authorization (IHA) which is effective
for only 1 year or an applicant can apply for a Letter of Authorization
(LOA) which is effective for 5 years. A one-year IHA generally takes 5-
8 months to complete, and a 5-year LOA takes between 9-15 months to
complete.
The Port of Alaska has received annual IHAs in 2020 and 2021 and
NMFS will continue to work with both the Port and NOAA on future
permitting needs. NMFS has suggested that a five-year LOA could be an
efficient alternative to the annual IHA. as it allows for authorization
of take over a five-year period. However, this process does require a
lengthier development period. Alternatively, or in tandem, the Port may
continue to pursue one-year IHAs, which may be completed more quickly.
Question 12. Please tell us if you intend to make every effort to
have NMFS -at all relevant agency and subagency levels of jurisdiction
and engagement in the permitting for the project--proactively seek to
cooperate with the Corps of Engineers (which I anticipate will be the
NEPA lead for this project), USDOT, the State of Alaska and the
Municipality of Anchorage at the earliest possible time.
Answer. Cooperating with the U.S. Army Corps of Engineers, the
staff at the Port of Alaska, their contracted environmental consulting
firms, and other partners, has been and remains a top priority for
NMFS. Many of our Alaska Region staff live and work in the area that
would be affected by any disruption of Port services. We are committed
to a collaborative approach to the consultations and authorizations for
this project.
Question 13. How will NMFS work to make sure that as subsequent
funds and made available for the Port of Alaska Modernization Program,
via grants, loans, otherwise, that there is one NEPA process and not
multiple repetitive or redundant processes?
Answer. NMFS strives to assist in streamlining the permitting and
authorization processes for large scale projects. In the case of the
Port of Alaska modernization project, the U.S. Army Corps of Engineers
will lead the NEPA process, and NMFS will provide guidance on the
timing and information needs for ESA Section 7 and MMPA consultations
to reduce the likelihood of repetitive processes. The FY23 DOC budget
includes an increase of $2.5 million to process requests for offshore
wind MMPA authorizations as well as ESA section 7 consultations. The
FY23 DOC budget also includes an increase of $5.0 million to address
ESA section 7 consultations and MMPA authorizations nationwide--beyond
just offshore wind, including requests from non-wind energy companies
and other entities carrying out projects under the 2021 Infrastructure
Act. Funding both of these requests would greatly help ensure we have
the staff required to focus on multiple high priority requests for
authorizations that we anticipate in FY23.
Question 14. Will you commit to implementing a policy that
encourages people in your agency to reach out early and sincerely to
their counterparts in other agencies and among stakeholders?
Answer. Yes. I have prioritized the Department of Commerce and its
bureaus to reach out and be accessible to stakeholders, other agencies,
and the general public who are interested and/or impacted by the work
of the Department pursuant to the availability of resources.
Question 15. My Save Our Seas 2.0 (PL 116-224), a bill to combat
marine debris, was signed into law in December 2020. Organizations
under the Department of Commerce, principally NOAA, are implementing
SOS 2.0 provisions, particularly by establishing the Congressionally-
chartered Marine Debris Foundation and releasing a number of reports on
plastic waste. What are the challenges and upcoming milestones in
continued SOS 2.0 implementation?
Answer. The Department of Commerce continues to make steady
progress toward implementing its requirements under the Save Our Seas
2.0 Act, including the appointment of the Marine Debris Foundation
Board of Directors and the first meeting of the Board (section 112), a
study conducted by the National Academies of Sciences, Engineering, and
Medicine on United States plastic pollution data (section 133), and a
study on mass balance methodologies to certify circular polymers
(section 134). The Department expects to complete several other
components of the Act in calendar year 2022, including the studies
required in section 135 and section 136. The Department also continues
to support implementation of reports assigned to the Interagency Marine
Debris Coordinating Committee. A draft of the report required under
section 132 is expected to be released for public comment in calendar
year 2022. The Department has also worked to implement its Title II
requirements, coordinating with the Secretary of State and the
Administrator of the United States Agency for International Development
to support international efforts to combat marine debris. Several
bureaus of the Department are involved in developing and supporting
United States Government positions for international negotiations to
create a new global instrument on plastic pollution, as decided at the
February 2022 United Nations Environment Assembly.
______
Response to Written Questions Submitted by Hon. Marsha Blackburn to
Hon. Gina M. Raimondo
Question 1. For good reason, I hear from Tennesseans about their
concerns with the current supply chain situation and the effect it's
having on their businesses. And this is not limited to any certain kind
of company--the supply chain shortages are hurting everyone from Oak
Ridge National Labs to small providers of home appliances. For this
reason, I worked with Senators Peters and Scott to introduce a bill to
direct the SelectUSA program to engage with states about how to attract
foreign direct investment from non-adversarial countries for
semiconductor manufacturing. How are you working with states and their
economic development organizations--like the Tennessee Department of
Economic and Community Development--to think about the role of foreign
direct investment in helping fill gaps in the supply chain?
Answer. SelectUSA hosted the 2022 SelectUSA Investment Summit on
June 26-29, 2022. The annual SelectUSA Investment Summit embodies
SelectUSA's unique capabilities to convene U.S. economic development
organizations (EDOs) and foreign investors to attract foreign direct
investment. 51 of the 56 U.S. state and territory EDOs participated in
the 2022 SelectUSA Investment Summit, including the Tennessee
Department of Economic and Community Development. SelectUSA engaged
directly with these EDOs as well as foreign business investors, to
provide support as they develop, coordinate, and shape future
investments in semiconductors and other critical supply chains.
SelectUSA hosted delegations from over 70 international markets,
including from Taiwan and South Korea which have recently made
significant semiconductor investments in the United States.
Two separate semiconductor announcements were made at the 2022
SelectUSA Investment Summit, including a groundbreaking $5 billion
announcement by Global Wafers from Taiwan, which is bringing the
production of raw silicon wafers to American soil, building the largest
facility of its kind in Sherman, Texas, creating 1,000 new jobs and
closing a critical gap in the semiconductor supply chain shortage.
Additionally, MediaTek, one of the world's largest manufacturers of
fabless semiconductors announced a major investment in Indiana. Their
new collaboration with Purdue University will develop the workforce in
the semiconductor industry, targeting new engineering talent.
The Department of Commerce, and 13 other Federal agencies, were on
site to engage directly with EDOs and foreign business investors
regarding Federal policies and programs to help support and bolster
U.S. critical supply chains. In addition, Federal leaders engaged
directly with state and local EDO leaders in planning sessions focused
on IIJA and supply chain implementation approaches and challenges.
Finally, SelectUSA is also working with government officials in non-
adversarial countries that actively promote and support foreign direct
investment into the United States to find common ground on advancing
investments in critical supply chain sectors.
Beyond the Investment Summit, SelectUSA provides services that
directly respond to investor and EDO needs in supply chain critical
areas.
In order to help the Department's efforts on foreign direct
investment, the Department urges the Congress to fund the 2023
President's Budget request for an additional $10.85 million and 38
positions at ITA's Industry and Analysis (I&A) business unit. I&A plays
a central role in identifying risks and opportunities for the growth of
U.S. industries and has a unique strength in understanding industries
and their global supply chains. This analytical work informs and
directs many of the Administration's supply chain activities. I&A also
supports U.S. economic and national security through identifying
commercialization opportunities for firms, identifying chokepoints in
supply chains, directing action to mitigate risks, and supporting key
industries to enhance domestic manufacturing and expand exports and
foreign investment.With the FY 2023 request, I&A can add value on
existing lines of effort. including understanding and advancing
strategies and specific recommendations on critical minerals, electric
vehicle batteries, and semiconductors as well as efforts to attract
foreign investment in key sectors.
Question 2. And how do we make sure--like our bill contemplates--
that those dollars are not coming from countries like China, but rather
those who want to work with us and not against us to ensure the U.S.
can stay a leader in manufacturing?
Answer. We take the risks involving China and other strategic
competitors that threaten our national security very seriously and work
to bring together all elements and resources of the Department of
Commerce. For example, we apply significant scrutiny to certain
incoming investments, including from foreign adversaries, through our
work on the Committee on Foreign Investment in the United States
(CFIUS). During the interagency assessment period, Commerce conducts
analysis to identify risks arising from transactions. In doing so,
Commerce takes into account United States international technological
leadership in areas affecting national security. Commerce analysis is
based on in-depth industry and market expertise and also considers the
applicability of other authorities such as export controls.
Question 3. Many of our allies are working on near term cases for
applied quantum computing. Canada has an Applied Quantum Computing
Challenge. Australia is looking at quantum computing applications to
optimize their transportation system. I am concerned the U.S. will fall
behind others around the globe on getting the benefits of this
important technology. How will you accelerate your efforts to build a
program that would be focused on working with industry on developing
and deploying quantum and quantum-hybrid applications for public sector
uses?
Answer. Some of the activities specified by the National Quantum
Initiative (NQI) Act direct the Department of Commerce to ``Continue
and expand basic and applied QIS research, including measurement and
standards infrastructure, necessary to advance commercial development
of quantum applications.'' To this end, NIST supports the Quantum
Economic Development Consortium (QED-C). The QED-C is a consortium of
stakeholders whose purpose is to enable and grow a robust commercial
quantum-based industry and associated supply chain in the United
States. Some of the activities in QED-C include helping companies with
quantum-related technology needs find suppliers, customers and
partners; providing a forum for quantum jobs; developing industry-
relevant standards; and working on industry-identified projects where
some of the knowledge we've developed at NIST is transferred to member
companies. There are currently more than 200 QED-C participating
organizations, including members from the automotive, aerospace,
finance, and software industries, universities; government agencies;
small and medium sized companies, and other stakeholders.
In addition, the NIST-on-a-Chip research program is developing
quantum-based technologies that take measurement services out of the
lab and directly to the end user. These include technologies for
measuring magnetic and electric fields; biochemical sensing, size, and
dimensions; current; voltage; and resistance. All of these measurement
services are critical to the development and success of quantum
technology. Another aspect of NIST's quantum research is developing
measurement systems for high-fidelity, scaled quantum systems to
support of U.S. industry work on quantum computing processors and
transformative sensors. NIST also runs a Quantum Network Grand
Challenge for developing a multi-node testbed quantum network in both
the Washington, D.C. and Boulder areas.
Question 4. The National Quantum Initiative Act was signed into law
in December 2018, and directed the Administration to work with industry
and academia to help build out the quantum computing ecosystem within
the U.S. In this effort, Congressional intent was clear that we wanted
to encourage collaboration between industry, academia and government
for this important emerging technology. One of the best ways to do that
is to foster public-private partnerships. How is the Department of
Commerce incorporating public-private partnerships for near term
application development so that businesses and governments can access
the benefit of quantum technology applications within the next 5 years?
Answer. One of the functions outlined in section 210 of the
National Quantum Initiative (NQI) is for NIST to ``Establish or expand
collaborative ventures or consortia with other public or private sector
entities,. . .for the purpose of advancing the field of quantum
information science and engineering.''
In response, NIST established the Quantum Economic Development
Consortium (QED-C). The QED-C is a consortium of stakeholders whose
purpose is to enable and grow a robust commercial quantum-based
industry and associated supply chain in the United States. Some of the
goals of the QED-C are to:
1. identify high-impact use cases and applications for quantum
information science and technology (QIST);
2. identify and develop strategies to address gaps in enabling
technologies, standards and performance metrics, security, and
workforce;
3. inform government of the country's quantum information science
and technology needs; and
4. facilitate collaborations among members, and with government, to
accelerate QIST development, commercialization, and economic
benefits.
There are currently more than 200 QED-C participating
organizations, including multiple agencies and a diverse set of
industry, academic, small and medium-sized companies, and other
stakeholders, who are working together to identify gaps in technology,
standards, and workforce and to address those gaps through
collaboration. Public-private partnerships have the potential to lower
costs and speed development by leveraging private sector technical
expertise and robust project governance, but implementation can be
complex and requires a balanced sharing of risks and returns to realize
the full benefits for society and taxpayers.
Some of the activities in QED-C include helping companies with
quantum-related technology needs find suppliers, customers and
partners; providing a forum for Quantum jobs; developing industry-
relevant standards; and working on industry-identified projects like
advancing cryogenics for quantum information science and technology.
NIST will continue to explore additional opportunities to engage U.S.
industry in commercializing quantum and quantum hybrid technologies.
______
Response to Written Questions Submitted by Hon. Todd Young to
Hon. Gina M. Raimondo
Question 1. Earlier this month, Gridtential Energy announced a
product development agreement with Camel Energy, the largest car
battery manufacturer in China, and an unnamed top-three U.S. automaker
to manufacture bipolar battery technology. Gridtential was the
recipient of a Department of Energy grant several years ago that helped
to develop this technology. Yet Camel, a Chinese company, proudly
states on its website that it is ``a high-tech enterprise supported by
the state.'' This announcement looks like an example of the U.S.
government supporting technology development in a critical sector that
we are ultimately allowing to be manufactured and co-opted by China,
costing American jobs and increasing our reliance on China in the
process. Is the Department of Commerce looking into this case and
working with the Department of Energy to be sure that we are taking
steps to protect American technology and reap the benefits of our
Federal investments right here in the US?
Answer. Without commenting on any specific party or transaction,
the U.S. government has tools to address and prevent the acquisition of
sensitive technologies through foreign investment or export. In
addition, the Commerce Department, through the Bureau of Industry and
Security, administers appropriate controls on exports and reexports of
dual-use commodities, technology, and software subject to the Export
Administration Regulations (EAR) for national security and foreign
policy reasons, and regularly instructs industry on whether potential
transactions involving exports of items subject to the EAR would be
contrary to U.S. national security and foreign policy interests.
Question 2. The private sector is putting significant sweat equity
and actual equity into the development of quantum computing and leaning
in on the potential for future technological discoveries.
Answer. We are encouraged by the number of U.S. companies that are
investing in different aspects of quantum technology. A good number of
these companies belong to the Quantum Economic Development Consortium
(QED-C), a consortium supported by NIST, with the purpose of enabling
and growing a robust commercial quantum-based industry and associated
supply chain in the United States.
Question 3. Understanding quantum applications vary in scope and
tenure, how is your department studying near term applications of
quantum to ensure we get the use of the technology today?
Answer. Related to quantum sensing, arguable the most mature
subsector of quantum technologies, the NIST on a Chip program is
focused on building quantum-based devices that are self-calibrating,
fit-to-function, and manufacturable. This allows us to take measurement
services out of the lab and directly to the end user and help NIST turn
quantum research into commercial products. Examples of NIST on a Chip
technologies that have been commercialized include the chip-scale
atomic clock and chip-scale magnetometers.
NIST also continues to play an important role in developing and
disseminating key enabling technologies relevant to quantum computing
and quantum networking, including Nobel Prize winning research in ion
trapping which has been adopted and built upon by several U.S. quantum
computing companies, and NIST technology for faint light detection that
has formed the basis for start-up companies.
Question 4. Is there a plan to fund near-term application
development that can be deployed between 2023-2026?
Answer. Several quantum sensing and measurement technologies are
being co-developed with industry and other government agencies through
the NIST on a Chip program. These efforts are anticipated to accelerate
further technology development and to yield commercially viable and
perhaps deployable devices by 2026.
Question 5. How are you tasking your science and innovation office
with building out quantum applications for government uses?
Answer. The Biden-Harris Administration is making a lot of
investments in critical and emerging technologies, such as quantum. As
we make these investments, it is important that we use some of these
technologies to help improve the U.S. Government's work.
One of the task forces within the Quantum Economic Development
Consortium (QED-C), is Quantum for National Security (Q4NS). Q4NS is a
forum for government and industry to exchange information related to
advancing quantum information science and technology for national
security applications. Some of the work includes quantum for
positioning, navigation and timing, a topic of interest to the
Department of Defense.
In addition, some of our NIST-on-a-Chip work is done in
collaboration with other U.S. Government agencies. For example, the Air
Force has adopted our devices for measuring laser power and the Army
has deployed some of our quantum voltage instruments.
NIST also coordinates efforts with QIS leaders from other
government agencies, such as NASA, National Science Foundation, Air
Force Research laboratory, and the Department of Energy, to develop and
mature critical technologies to build the future quantum internet,
including terrestrial and space-based tests.
______
Response to Written Questions Submitted by Hon. Mike Lee to
Hon. Gina M. Raimondo
Question 1. Madame Secretary, as you are well aware the
Infrastructure Investment and Jobs Act awarded the NTIA with $42
billion for broadband deployment. My understanding is that NTIA will
soon be issuing a NOFO for this funding. The IIJA gives the NTIA broad
discretion to put additional requirements on funding recipients, which
has raised concerns about implementation. Therefore, I would like to
have some commitments from you regarding such funding. During his
nomination process, NTIA Administrator Alan Davidson committed to me in
writing that he would not advocate for ``net neutrality'' conditions to
be placed on the broadband fund distributed by NTIA. Can you commit
that ``net neutrality'' policy will not be a condition for this
funding?
Answer. On May 13, 2022, NTIA released the NOFO describing the BEAD
Program. The NOFO did not impose net neutrality on BEAD-funded (or
other) networks.
Question 2. Broadband open access is a debate regarding whether
broadband companies must be required to provide access to their
facilities for competing businesses that don't own the infrastructure.
Can you commit that open access requirements are not a condition of
funding?
Answer. The BEAD NOFO does not require any provider to offer open
access over last-mile broadband networks constructed using BEAD
funding. The NOFO encourages--but does not require--States and
territories to consider whether a provider will offer open access
wholesale last-mile broadband service for the life of the subsidized
networks, on fair, equal, and neutral terms to all potential retail
providers, when choosing among competing proposals.
Question 3. Administrator Davidson also committed in writing to
avoiding the ``overbuilding'' of broadband network. The
``overbuilding'' of broadband networks has been a serious problem along
with the duplication of resources from other agencies. What steps has
the Department taken in the implementation of the IIJA to prevent
network ``overbuilding'' and the duplication of broadband funds with
other agencies?
Answer. The BEAD NOFO explicitly prohibits States and territories
from treating any location that is already subject to an enforceable
Federal, State, or local commitment to deploy qualifying broadband as
``unserved'' or ``underserved.'' See BEAD NOFO section IV.B.7.a.ii,
item 3. NTIA is committed to implementing the statute faithfully.
Minimizing funding duplication is critical to success of the BEAD
program and the overarching goal of ensuring that all Americans have
access to affordable, reliable, high-speed internet. NTIA works closely
with the other Federal agencies that fund broadband (the FCC, USDA,
Treasury, and Economic Development Administration (EDA)) to minimize
Federal broadband funding duplication, and will continue to do so as we
move forward with the BEAD program.
Question 4. Unfortunately, our spectrum pipeline is dangerously low
and after the upcoming 2.5Ghz auction, it will be bare. This requires
identifying more spectrum bands for reallocation in conjunction with a
national spectrum strategy. Since you have taken office, what steps has
the Department taken to implement a national spectrum strategy?
Answer. I strongly disagree that our spectrum pipeline is
dangerously low. The United States leads the world in wireless
technologies, and a big reason for this has been our ability make large
swaths of spectrum available to private industry--and for that spectrum
to be used effectively and efficiently. The Biden-Harris Administration
is working hard to make available highly valuable mid-band spectrum
between 3.1 and 3.45 GHz. This has the potential for an auction of an
enormous amount of contiguous spectrum--if we do it right. Lots of work
still needs to be done, and I am confident NTIA will be doing its part.
The Biden-Harris Administration's work on the 3.1-3.45 GHz is
proceeding consistent with Congress's directions. The Administration
puts its imprint on spectrum policies and strategies every day, and
they will make appropriate announcements in due course.
Question 5. Related to the spectrum strategy, what steps have you
taken to review existing allocations, promote greater efficient use of
Federal bands, and identify future bands for auction?
Answer. Spectrum is vital to modern economies, and I cannot
emphasize that enough. We understand the demand for spectrum in the
private sector. NTIA, thus, constantly evaluates possible bands for
spectrum repurposing, and we also have an important job in supporting
critical Federal missions that require spectrum. Repurposing has to be
done right. It takes time, and the low-hanging fruit is gone. That is
why we have to manage Federal spectrum more efficiently. We are
improving coordination among Federal agencies, including the FCC. We
are emphasizing the importance of evidence-based policymaking and
leveraging new technology to conduct IT modernization. With these
steps, we aim to keep the spectrum pipeline flowing.
Question 6. What steps has the Department taken to improve spectrum
coordination decision-making between the NTIA and FCC? And have you
made any changes to improve the transparent sharing of between the
agencies?
Answer. Improving spectrum coordination is an important policy for
NTIA. This year, NTIA and the FCC established the Spectrum Coordination
Initiative. Under this initiative, Assistant Secretary Alan Davidson
and FCC Chairwoman Jessica Rosenworcel reestablished the practice of
regular high-level meetings to conduct joint spectrum planning. On
August 2nd, NTIA and the FCC updated their nearly twenty-year-old
Memorandum of Understanding to help facilitate coordination between the
two agencies. NTIA and the FCC are contributing to a new spectrum
strategy that will guide us for years to come. And to foster technical
exchange and engagement with industry and other Federal agencies, both
NTIA and the FCC are participating in cross-agency advisory groups--
with the FCC participating as an observer in the Commerce Spectrum
Management Advisory Committee, and NTIA participating as an observer in
the FCC's Technological Advisory Council and the Communications
Security, Reliability, and Interoperability Council.
Question 7. It is no secret that exports contribute significantly
to our economy. The Department of Commerce has noted their importance,
and has even posited that businesses that export are less likely to go
out of business, record higher revenues, and create more jobs, than
those that don't.\1\ One issue that I believe is important for our
exports (and imports) is dredging or deepening our port and navigation
channel's capacity. NOAA itself has found that with just one more inch
of depth at a port, a cargo ships can carry about 50 more tractors,
5,000 televisions, 30,000 laptops, or 770,000 bushels of wheat.\2\ This
means fewer trips overall, which is good for the safety of our
waterways, the environment, and consumer prices. This issue was brought
to the surface just last year when the Federal Maritime Commission
expressed its grave concern over a Texas state bill that restricted on
way transit of Neo-Panamax vessels due to capacity restraints.\3\ The
Commission asserted that these restrictions could ``severely hamper the
competitiveness of the Port of Houston and impact the long-term
competitiveness of the entire Gulf of Mexico's ocean container trade.''
It is my fear that if we do not reduce the many barriers that inhibit
our dredging practices, problems similar to the ones at the Port of
Houston will become standard across the nation. Do you agree that
dredging at our ports is important and should be a key focus of our
supply chain strategy if we want to increase U.S. competition globally?
---------------------------------------------------------------------------
\1\ International Trade Administration, COVID-19 Economic Recovery:
An Important Moment Arrives for U.S. Exporters, May 19, 2021, available
at: https://blog.trade.gov/2021/05/19/covid-19-economic-recovery-an-
important-moment-arrives-for-u-s-exporters/
\2\ U.S. Department of Commerce, An Inch of Water. What's it Worth?
available at: https://oceanservice.noaa.gov/economy/inch-water/
\3\ FMC, A letter to the Port of Houston expressing concerns about
port regulations, March 2, 2021, available at: https://www.fmc.gov/wp-
content/uploads/2021/03/BentzelSolaHoustonShip
ChannelMarch2021.pdf
---------------------------------------------------------------------------
Answer. Absolutely. Dredging helps keep our ports working
efficiently and enables the safe transport of goods and services across
the country and across the globe, powering our export markets and
helping to ensure supply chains are able to meet pace with demand.
However, simply dredging alone is not enough. Once dredging occurs,
NOAA must re-survey the area and apply the new depth contours to
electronic navigational charting products to allow mariners to safely
navigate into ports.
Question 8. Can you commit to further looking into this matter?
Answer. Yes, I will commit to looking into this issue further.
Thank you for bringing it to my attention.
Question 9. One of the debates currently happening is over the
government subsidization of semiconductor manufacturing. USICA/America
Competes Act both would allocate $52 billion. The proposed funding
doesn't specify the types of semiconductor production that would be
funded. Is it your view that funding should be used to support all
types of semiconductors?
Answer. The chip shortages we are experiencing affects a broad
range of industries using different types of chips. The Department of
Commerce is committed to addressing the domestic semiconductor
manufacturing challenges through a broad-based approach that focuses on
the overall domestic chip production ecosystem. Currently we are
planning to fund incentives that would expand manufacturing capacity
relevant to logic chips at both advanced and mature nodes, memory,
analog and optoelectronics, as well as investment in advanced packaging
capabilities, and other efforts related to the broader health of the
overall semiconductor manufacturing ecosystem.
Question 10. Given the shifts that occur in markets--including
within semiconductors, how do you prevent government subsidies from
causing an oversupply of goods?
Answer. The Biden-Harris administration conducted 100-day reviews
of supply chains for four critical products, including semiconductors,
under Executive Order 14017. The Report describes the state of these
supply chains and steps that should be taken to build resilient and
robust supply chains and revitalize America's manufacturing sector. As
we plan for the implementation of the CHIPS Act, the Department of
Commerce is using some of the recommendations of that report.
Also, the Department of Commerce, with the assistance of NIST,
issued a request for information (RFI) and received over 200 unique
responses from a broad range of the semiconductor ecosystem including
foundries, facilities, design software, academia, equipment suppliers,
materials suppliers, trade associations, and professional
organizations. The input from industry on how to structure the program
for maximum efficiency will be invaluable during the implementation
phase.
Question 11. Could government subsidies in semiconductors cause
trade disputes? What has the Department done to prepare for potential
retaliation?
Answer. The CHIPS and Science Act is a historic investment that
will help revitalize the U.S. domestic manufacturing economy, spur
research and development in critical industries, and enable us to
continue outcompeting and out-innovating the rest of the world. These
investments will create high-quality, good-paying jobs for hundreds of
thousands of Americans, secure American supply chains, and protect
America's global scientific and technological leadership for decades to
come. The Department will continue to consult other relevant agencies,
including USTR, on implementation.
Question 12. We know that U.S. manufacturing costs are higher than
foreign countries, including Asian markets. In your review of our
supply chains, have you looked at or considered the regulatory
compliance burdens associated with our domestic manufacturing?
Answer. The supply chain reports drafted in response to E.O. 14017
were coordinated by the White House, with Commerce leading on the
semiconductor and co-leading with the Department of Homeland Security
on the ICT supply chain reports. Domestic regulatory compliance burdens
were covered in those reports, but were not a primary focus area.
However, the Department does review its own regulatory processes,
seeking input from relevant stakeholders and working with other
government agencies where appropriate, to identify and reduce
regulatory barriers.
Question 13. It is my understanding that companies have to receive
a ``letter of authorization'' (LOA) for an allowable number of takings
from the National Marine Fisheries Service (NMFS) in order for the
company to develop its existing Federal oil and gas lease? Just two
months ago, NMFS noted that the ``takes'' authorized under its rule
were ``miscalculated'' slowing the approval of LOAs until a rulemaking
can be conducted. Let me be clear. It was a mistake from the agencies
that is slowing down the permits. How many outstanding permit
applications are sitting with NMFS? And how long are they taking to
approve?
Answer. Oil and gas activities in the Gulf of Mexico have the
potential to ``harass'' marine mammals and if so, they are prohibited
unless the project sponsor received a form of incidental harassment
authorization under the Marine Mammal Protection Act. In order to
create efficiencies, NOAA issued a programmatic ``Incidental Take
Rule'' (ITR) in 2021 and adopted an expedited process for such
authorizations. Individualized authorizations take more time and
resources but this avenue for securing authorizations is still
available if the standards are met. The programmatic rule allowed NOAA
to issue 25 under the ``harassment caps'' established in the
programmatic process.
The programmatic rule was based on estimates of the extent of
activity and associated marine mammal interactions provided by the
BOEM. Late in 2021, the Department became aware that BOEM had
underestimated the amount of potential take. The result was that some
(but not all) oil and gas projects for 2022 could not come within the
programmatic rule because doing so would exceed the harassment cap.
Those projects could still potentially be authorized on an individual
basis but that process takes longer.
BOEM provided revised estimates and NOAA is processing a revision
to the authorization process. NOAA hopes to propose a revised soon, to
be followed by a final determination. At the same time, NOAA continues
to process harassment authorizations under the programmatic rule for
those activities that will not exceed the current harassment cap. NOAA
has recently issued three additional authorizations that will not
exceed the current harassment cap and is processing a number of others.
There are an additional 10 pending requests seeking authorization to
harass killer whales that would exceed the current cap. The problem
created by BOEM's revised estimates is an issue not of duration of
approval, but of the ability to issue these LOAs at all due to
exceeding the harassment cap. When able to issue an LOA (for example,
when take exceeding the harassment cap is not expected) approval
periods are approximately two weeks.
Question 14. How long will NMFS be working on new regulations? And
why can't an interim decision be made to temporarily prioritize LOAs to
help advance the development of our existing oil and gas leases?
Answer. NMFS is continuing to process authorizations that will not
exceed the current harassment cap. It has recently issued three such
(as additional take has become available for authorization upon
completion of currently ongoing surveys) and is processing a number of
others. Further, NMFS hopes to propose a revised determination soon, to
be followed by a final determination.
Nevertheless, NMFS currently does not have the capacity to keep up
with the need for ESA and MMPA environmental compliance activities. The
FY23 DOC budget includes an increase of $2.5 million to process
requests for offshore wind MMPA authorizations as well as ESA section 7
consultations. The FY23 DOC budget also includes an increase of $5.0
million to address ESA section 7 consultations and MMPA authorizations
nationwide--beyond just offshore wind, including requests from non-wind
energy companies and other entities carrying out projects under the
2021 Infrastructure Act. Funding both of these requests would greatly
help ensure we have the staff required to focus on multiple high
priority requests for authorizations that we anticipate in FY23.
Question 15. In a recent interview with Time, you stated that as
co-chair of the President's Supply Chain Disruption Task Force, the
Commerce Department's solution to rising energy prices is to:
``increase domestic production of batteries, solar panels, [and] other
products that need to be made in America. The more we make in America,
the more supply we have here, it will just bring down prices''.\4\ I'm
skeptical that fostering domestic production of certain industries like
batteries and solar panels, will result in picking industry winners and
losers. How does increasing production of batteries and solar panels
bring down gas prices?
---------------------------------------------------------------------------
\4\ TIME, Commerce Secretary Gina Raimondo on the Chip Shortage,
Supply Chain Issues, and Russian Sanctions, July 22, 2021, available
at: https://time.com/6156329/commerce-secretary-raimondo-chips/
---------------------------------------------------------------------------
Answer. As I mentioned in my response to the question posed in the
Time interview, a detailed analysis of energy prices is best coming
from the Secretary of Energy. That being said, the Department of
Commerce is focused on fostering domestic production for critical
industries, including in the energy sector. A robust domestic supply
chain in energy will reduce U.S. dependence on other countries and has
the added benefit of creating American jobs. As renewable sources of
energy become increasingly important, we should be doing everything we
can to ensure that the high-quality jobs making batteries and solar
panels are here at home. By making energy supply chains more resilient,
we should have fewer supply shocks and lower prices for American
consumers.
Question 16. My understanding is the critical minerals needed for
these projects are in China? Doesn't this stance make us more dependent
on China?
Answer.The Chinese Government has tremendous control over that
nation's State-Owned-Enterprises, which traditionally align themselves
with the Party's current 5-Year Plan and other national objectives.
Since the early 1990s, China has dominated the global market for many
key critical minerals and strategic materials. China is the world's
leading producer and consumer of several of these materials that are in
high demand in the United States.
The U.S. Government, in conjunction with strategic partners and the
U.S. private sector, must take aggressive, meaningful steps to ease our
Nation's dependence on China for processed critical materials and their
associated downstream inputs. For instance, the Department of Energy
has multiple programs to drive innovation in critical minerals,
including a Rare Earth Element Demonstration Facility and $675 million
critical minerals research, development, demonstration, and
commercialization program, both established in the Bipartisan
Infrastructure Law. At the same time, the United States must partner
with allies to diversify supply chains, move aggressively to establish
secondary sources for the processing and recycling of critical
minerals, and pursue substitutability and re-engineering alternatives
to reduce U.S. import reliance on China for critical minerals.
The one-year Capstone Report for EO 14017 published by the White
House references the need to update mining laws and regulations related
to mining critical minerals on Federal lands. Moreover, the Biden-
Harris Administration released a Fact Sheet entitled ``Securing a Made
in America Supply Chain for Critical Minerals'' to highlight all of the
actions being taken to ensure we have access to critical minerals
needed to secure our economic and national security. Finally, in March
2022, the President authorized the use of the Defense Production Act to
promote secure critical mineral supplies, an effort that Commerce is
supporting.
In order to help the Department move forward on critical minerals,
the Department urges the Congress to fund the 2023 President's Budget
request for an additional $10.85 million and 38 positions at ITA's
Industry and Analysis (I&A) business unit. I&A helped inform the
aforementioned efforts, and the requested funding for FY 2023 would
permit I&A to partner more with allies to diversify supply chains and
to alleviate stress in the supply chain for critical minerals. I&A
plays a central role in identifying risks and opportunities for the
growth of U.S. industries and has a unique strength in understanding
industries and their global supply chains. This analytical work informs
and directs many of the Administration's supply chain activities,
including staffing most of the Department's actions on critical
minerals, for crisis response, such as for Russia-Ukraine, and long-
term strategic and policy efforts to counter risks posed by foreign
adversaries, such as the PRC's civil-military fusion and their efforts
to exploit U.S. technological breakthroughs and corner the market in
specific supply chains, as it has with the solar industry. With the FY
2023 request, I&A can add value on existing lines of effort, including
understanding and advancing strategies and specific recommendations on
critical minerals, electric vehicle batteries, and semiconductors as
well as leading international engagements.
Question 17. Wouldn't energy prices have a better chance of being
lowered if we increased domestic production of all energy sources,
including oil, natural gas, and coal?
Answer. While the Administration is committed to achieving energy
independence and resilience through investments in clean energy and
increasing domestic production of critical materials needed for
batteries, we are also increasing domestic production of other energy
sources, including oil and natural gas. The U.S. Energy Information
Administration (EIA) forecasts that the U.S. will produce 11.9 million
barrels of oil per day (b/d) in 2022, and 12.7 million b/d in 2023,
which would set a record for most U.S. crude oil production in year and
would represent a major increase on the 11.25 million b/d produced in
2021. The ETA also anticipates U.S. dry natural gas production to
average 96.6 billion cubic feet per day (Bcf/d) in 2022, which would
also set a record for most natural gas produced in the United States in
a year. The EIA projects U.S. natural gas production will increase even
further in 2023, averaging 100.0 Bcf/d.
While U.S. oil and gas production ramps up to all-time highs, the
Biden-Harris Administration has taken additional steps to increase
energy supply to lower prices by announcing the largest-ever release of
oil from the Strategic Petroleum Reserve and coordinating with partners
and allies around the world to do the same.
Question 18. The Digital Equity Act has a ``nondiscrimination''
provision that must be enforced consistent with Title VI of the Civil
Rights Act of 1964.\5\ However, categories for ``actual or perceived''
sexual orientation and gender identity appear in the Digital Equity
Act, but not Title VI. Disparities like this have arose in the past
concerning gender, and the Department of Justice has thus weighed in on
multiple issues in this space, including public school bathroom
policy,\6\ \7\ the Violence Against Women Act,\8\ and women's
sports.\9\ The determinations that the DOJ made in this space are
problematic to me, and I want to ensure that IIJA funding will not be
contingent on similar definitions of sexual orientation and gender
identity. Because the Department of Commerce must enforce the Digital
Equity Act's ``nondiscrimination'' provisions, please answer the
following: Will the Department define ``discrimination'' according to
the DOJ's enforcement under Titles IV and IX?
---------------------------------------------------------------------------
\5\ P.L 117-58, Title III, Sec. 60307
\6\ DOJ, United States Reaches Agreement with Arcadia, California,
School District to Resolve Sex Discrimination Allegations, July 24,
2013, available at: https://www.justice.gov/opa/pr/united-states-
reaches-agreement-arcadia-california-school-district-resolve-sex-
discrimination
\7\ DOJ, Case Summaries, G.G. v. Gloucester County School Board,
available at: https://www.justice.gov/crt/case-summaries#gloucester
\8\ DOJ, Memorandum on the Interpretation of Bostock v. Clayton
County, March 10, 2022, available at: https://www.justice.gov/crt/page/
file/1481776/download
\9\ DOJ, Case Summaries, B.P.G. v. West Virginia State Board of
Education, available at: https://www.justice.gov/crt/case-
summaries#wvboard
---------------------------------------------------------------------------
Answer. The Department has not yet made any determinations
regarding enforcement of the Digital Equity Act's nondiscrimination
requirements.
Question 19. Is access to restrooms regardless of sex a requirement
of any school that seeks to apply for broadband funds under either the
State Digital Equity Capacity Grant Program or the Digital Equity
Competitive Grant Program?
Answer. The IIJA's broadband provisions do not address this issue,
and it is not addressed in the Notices of Funding Opportunity we have
issued in relation to the programs created by that legislation.
Question 20. Would the administration's definition of
``discrimination'' prohibit an eligible grant recipient from partnering
with or providing broadband to a school that maintains sex-specific
facilities like bathrooms and locker rooms?
Answer. The IIJA's broadband provisions do not address this issue,
and it is not addressed in the Notices of Funding Opportunity we have
issued in relation to the programs created by that legislation.
Question 21. Will a shelter be forced to house female survivors
with men who identify as women in order to apply for broadband funds
under either the State Digital Equity Capacity Grant Program or the
Digital Equity Competitive Grant Program?
Answer. The IIJA's broadband provisions do not address this issue,
and it is not addressed in the Notices of Funding Opportunity we have
issued in relation to the programs created by that legislation.
Question 22. Would the administration's definition of
``discrimination'' prohibit an eligible grant recipient from partnering
with or providing broadband to a shelter that houses only biological
females?
Answer. The IIJA's broadband provisions do not address this issue,
and it is not addressed in the Notices of Funding Opportunity we have
issued in relation to the programs created by that legislation.
Question 23. Would the administration's definition of
``discrimination'' prohibit an eligible grant recipient from partnering
with or providing broadband to a school that only allows biological
females in girls and women's sports?
Answer. The IIJA's broadband provisions do not address this issue,
and it is not addressed in the Notices of Funding Opportunity we have
issued in relation to the programs created by that legislation.
______
Response to Written Questions Submitted by Hon. Ron Johnson to
Hon. Gina M. Raimondo
Question 1. White House Deputy National Security Advisor Daleep
Singh recently stated, ``We inherited these tariffs and while they may
have created negotiating leverage they serve no strategic purpose.'' Do
you agree with this statement regarding tariffs? If not, please
explain.
Answer. USTR has jurisdiction over the 301 tariffs. We understand
that USTR is currently in the process of starting the statutory 4-year
review of the China Section 301 tariffs, which provides an opportunity
to conduct a full assessment of the tariffs. As part of the process,
USTR will invite comments from the full range of stakeholders,
including labor, agriculture, and business. This process is a key part
of the Administration's deliberative, long-term vision for realigning
the U.S.-China trade relationship around our priorities and making
trade work for American workers and businesses.
Question 2. Deputy National Security Advisor Singh also stated,
``For product categories that are not implicated by those objectives,
there's not much of a case for those tariffs being in place,'' he said.
``Why do we have tariffs on bicycles or apparel or underwear?'' Do you
agree with this statement? If not, please explain.
Answer. See above.
Question 3. A recent paper from the Peterson Institute stated
liberalizing trade ``could deliver a one-time reduction in consumer
price index (CPI) inflation of around 1.3 percentage points.'' Do you
believe tariffs contribute to inflation? If not, please explain.
Answer. My understanding is that economists have differing views on
that specific estimate. I welcome the opportunity to review the
Peterson Institute's report along with the range of scholarship on the
relationship between trade policy and inflation.
Question 4. What are your plans for lifting or reducing tariffs?
Answer. USTR has jurisdiction over the 301 tariffs. We understand
that USTR is currently in the process of starting the statutory 4-year
review of the China Section 301 tariffs, which provides an opportunity
to conduct a full assessment of the tariffs. As part of the process,
USTR will invite comments from the full range of stakeholders,
including labor, agriculture, and business. Meanwhile, USTR and
Commerce have negotiated agreements with key U.S. allies on 232 tariffs
for steel and aluminum products that will protect American jobs; avoid
retaliatory tariffs on iconic American brands like Harley Davidson and
the Kentucky bourbon industry; reduce inflationary pressures on
products like cars, trucks, appliances and canned goods; alleviate a
major supply chain crunch by supporting increased steel and aluminum
capacity in the U.S.; and address the national security threats
identified in the 232 reports.
Question 5. The argument for the steel tariffs was that it would
bring back steel manufacturing to the U.S., but American steel
companies have not appreciably invested in production quality or
capacity for tinplate steel, which is necessary for the canned food
industry. Instead, production capacity is dropping, while producers are
doubling prices to pad profits. In light of this, how do you justify
continuing steel tariffs, particularly during the current economic
climate of high inflation and ongoing supply chain issues?
Answer. The Biden-Harris Administration is committed to the
continued health and productivity of the U.S. steel sector as a matter
of national security. However, we share your expectation that the
protection afforded by the Section 232 tariffs will result in
reinvestment in U.S. production of steel and would be concerned about
any anti-competitive behavior in this sector.
Question 6. You stated during the hearing that net neutrality is up
to the FCC. However, other agencies such as USDA are including net
neutrality commitments as an evaluation metric for program applicants.
Are you considering making net neutrality a condition or evaluation
metric for programs overseen by the Department of Commerce? Please
explain.
Answer. On May 13, 2022, the NTIA released the NOFO describing the
BEAD Program. The NOFO did not impose any net neutrality requirements
on BEAD-funded (or other) networks.
Question 7. The President's Budget Request for Fiscal Year 2023
includes $11.7 billion for the Department of Commerce, an 18 percent
increase above the Fiscal Year 2022 enacted level. How should Congress
and the American people pay for this increase, if enacted?
Answer. The Budget's investments are more than paid for through
reforms that would make the tax system more equitable. For more detail
on the specific provisions in the President's Budget Request, we would
refer you to our colleagues in the Treasury Department.
Question 8. Are there any programs at Commerce you would recommend
cutting?
Answer. Each year the Department conducts a comprehensive review of
all programs and activities when developing the President's Budget.
Thoughtful stewardship of Federal resources necessitates that this
review sometimes leads the Department to recommend reducing or
eliminating certain programs or activities. No program terminations
were proposed in the FY 2023 President's Budget, however, the
Administration proposed strategic reductions within the Bureau of
Industry and Security, the Census Bureau, Departmental Management, the
Economic Development Administration, the National Institute of
Standards and Technology, and NOAA to capture savings and better deploy
Federal funds. Details of the proposed reductions may be found the FY
2023 President's Budget (https://www.commerce.gov/about/budget-and-
performance/fy-2023-congressional-bureau-justification).
Question 9. How much funding does the Department of Commerce have
from the CARES Act that is left unallocated?
Answer. As of the end of Quarter 2 of FY 2022, $60.4 million, or
approximately 3percent, of the Department's $1.896 billion in CARES Act
funding was unobligated. The Department is on track to obligate all
remaining funding by September 30, 2022.
______
Response to Written Questions Submitted by Hon. Rick Scott to
Hon. Gina M. Raimondo
Question 1. With Russia's invasion in Ukraine, we now see what our
adversaries are capable of doing. We must prepare for when Communist
China invades Taiwan. As of today, is the department prepared to
decouple from Communist China if Beijing were to invade Taiwan?
Answer. President Biden has observed correctly that we are in an
era of competition between democracies and autocracies. Russia is an
example of why multilateral coordination and partnerships are so
critical and necessary for success.
The unprecedented export controls coalition of 38 countries that
the Commerce Department's Bureau of Industry and Security (BIS) has
assembled is having a powerful impact on Russia's ability to sustain
its aggression, and these partnerships need to be solidified and
maintained as we continue to engage in long-term strategic competition
with the PRC, which is our greatest long-term competitor and threat. We
have clearly and forcefully communicated to the PRC Government and
Chinese companies the range of potential consequences for violating our
export controls.
Ultimately, we have shown that when our values are threatened,
governments around the world can lock arms and move quickly--and
together, we are extremely powerful. I hope that our actions to impose
swift and severe economic costs on Russia have caused Beijing to change
its strategic calculus. The Commerce Department will continue focusing
its efforts on coordinating with allies and partners to deny our
advanced technologies to authoritarian regimes, invest in our
resiliency through our people and industries, and lead with our values.
Question 2. In a recent press release from the Department of
Commerce, you refer to Taiwan as ``Chinese Taipei,'' while the whole
world knows that the democratic and self-governing island is called
Taiwan. Do you believe that such deference to Communist China's
sensitivities is appropriate?
Answer. Taiwan signed the declaration under the name `Chinese
Taipei' and the press release reflects that. There has been no change
in policy and the Commerce Department continues to refer to Taiwan as
Taiwan.
Question 3. In our hearing, you blamed the Federal Reserve for
rising inflation that is hurting every American. Do you take any
responsibility for inflation?
Answer. As you are aware, the Federal Reserve, as the country's
central bank, has sole responsibility over monetary policy. They have a
statutory mandate of maximum sustainable employment and price
stability. I understand that they are working to meet this mandate in
response to rising inflation.
The Biden-Harris Administration has prioritized growing the economy
to create more good jobs and address the global problem of inflation
spurred by the pandemic and Russia's war of choice. In the President's
first year in office, the economy created 6.5 million jobs more than
any prior year. We also saw the largest drop in the unemployment rate
on record. We know that supply chain bottlenecks have been a major
driver of inflation and are causing real hardship for Americans across
the country. For example, semiconductor shortages led to sky-rocketing
used car prices, which accounted for one-third of inflation in 2021.
This is one reason why I am working tirelessly to get the CHIPS funding
across the finish line.
Question 4. For Floridians, NOAA's hurricane data is vital for
making sure that their families and businesses are prepared for a
storm. Does NOAA plan to use more uncrewed vessels to collect live
hurricane data to better predict and prepare for storms?
Answer. NOAA will continue to lead the regional and international
effort to conduct research and development of potential operational
uncrewed ocean gliders in the tropical Atlantic and Caribbean region
during the Atlantic hurricane season, with the collaboration of the
Integrated Ocean Observing System (IOOS), the United States Navy, and
academic partners.
NOAA is assessing upper-ocean observations from gliders for their
potential to significantly improve hurricane forecasts, including those
of rapid intensification associated with ocean conditions, and the
ability of the gliders to be operated in concert with Saildrone
missions to improve our knowledge and representation of air-sea
exchanges in hurricane conditions.
NOAA is committed to improving hurricane forecasts, including
through the expanded use of uncrewed systems, which are being tested
and developed for the potential to improve forecasts by increasing our
understanding of the ocean and atmospheric conditions. In 2022, OMAO is
supporting three novel uncrewed technologies to help NOAA collect new
data sets in the tropical storm environment that will increase our
knowledge of these storms and enhance hurricane intensity forecast
ability. For example, NOAA is assessing the benefits of using a small
fleet of autonomous uncrewed surface vehicles propelled by the wind
(saildrones) for the observations of the upper ocean and near-surface
atmosphere. In addition to uncrewed marine systems, NOAA is testing the
use of expendable aircraft systems that can be flown into hurricanes to
provide more detailed and greater information than is currently
available from dropsondes.
NOAA, in collaboration with the IOOS Regional Associations and the
U.S. Navy, is leading a multi-organizational (IOOS Regional
Associations and U.S. Navy) Hurricane Glider Science and Operations
project to collect ocean observations to improve the initialization of
numerical forecast models.
NOAA is also assessing the benefits of using small uncrewed aerial
systems (UAS) deployed from NOAA's P-3 Hurricane Hunter (P3) aircraft
as a mechanism to transition into providing real-time near-surface wind
data to improve tropical storm operational situational awareness. These
small UAS will improve our physical understanding of tropical cyclones
at low altitudes and have the potential to enhance situational
awareness and forecasts of tropical storms and contribute to future
public advisories and warnings.
Question 5. For international travel, the United States continues
to have a policy in place where a negative test is required within one
day of departure when flying into the United States, regardless of
vaccination status. Are you working with your colleagues at the CDC and
the White House to determine the appropriate metrics that would be
required to lift this requirement?
Answer. As of June 12, 2022, the Centers for Disease Control and
Prevention no longer required air passengers traveling from a foreign
country to the United States to show a negative COVID-19 viral test or
documentation of recovery from COVID-19 before they board their flight.
For more information, see Rescission: Requirement for Negative Pre-
Departure COVID-19 Test Result or Documentation of Recovery from COVID-
19 for all Airline or Other Aircraft Passengers Arriving into the
United States from Any Foreign Country.
______
Response to Written Questions Submitted by Hon. Cynthia Lummis to
Hon. Gina M. Raimondo
Question 1. Secretary Raimondo, are you aware of any letters of
authorization for seismic permits necessary to the development of oil
and gas on existing Federal leases which are awaiting approval from
your Department or its agencies?
Answer. Yes.
Question 2. How many of such permit applications exist and how long
have each been in the queue?
Answer. There are currently 13 such incidental harassment
applications for oil and gas activities in the Gulf of Mexico that are
awaiting approval. All of these applications were received between
December 2021 and March 2022. 3 applications are for activities that
would not harass killer whales. Thus, NMFS is able to continue to
process those applications. However, 10 applications are seeking
authorization to harass killer whales and would exceed the current
maximum take. Upon completion of recent survey work, additional take
has become available for authorization. This allowed NMFS to issue a
new killer whale-involved authorization in May 2022 and process an
additional determination.
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