[Senate Hearing 111-247]
[From the U.S. Government Publishing Office]
S. Hrg. 111-247
HEARING TO CONSIDER THE NOMINATIONS
OF JONATHAN STEVEN ADELSTEIN,
KEVIN W. CONCONNON, AND EVAN J. SEGAL
TO THE U.S. DEPARTMENT OF AGRICULTURE
=======================================================================
HEARING
before the
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
JULY 7, 2009
__________
Printed for the use of the
Committee on Agriculture, Nutrition, and Forestry
Available via the World Wide Web: http://www.agriculture.senate.gov
U.S. GOVERNMENT PRINTING OFFICE
54-571 WASHINGTON : 2009
-----------------------------------------------------------------------
For sale by the Superintendent of Documents, U.S. Government Printing
Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC
area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC
20402-0001
COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
TOM HARKIN, Iowa, Chairman
PATRICK J. LEAHY, Vermont SAXBY CHAMBLISS, Georgia
KENT CONRAD, North Dakota RICHARD G. LUGAR, Indiana
MAX BAUCUS, Montana THAD COCHRAN, Mississippi
BLANCHE L. LINCOLN, Arkansas MITCH McCONNELL, Kentucky
DEBBIE A. STABENOW, Michigan PAT ROBERTS, Kansas
E. BENJAMIN NELSON, Nebraska MIKE JOHANNS, Nebraska
SHERROD BROWN, Ohio CHARLES E. GRASSLEY, Iowa
ROBERT P. CASEY, Jr., Pennsylvania JOHN THUNE, South Dakota
AMY KLOBUCHAR, Minnesota
KIRSTEN GILLIBRAND, New York
MICHAEL BENNET, Colorado
Mark Halverson, Majority Staff Director
Jessica L. Williams, Chief Clerk
Martha Scott Poindexter, Minority Staff Director
Vernie Hubert, Minority Chief Counsel
(ii)
C O N T E N T S
----------
Page
Hearing(s):
Hearing to Consider the Nominations of Jonathan Steven Adelstein,
Kevin W. Conconnon, and Evan J. Segal to the U.S. Department of
Agriculture.................................................... 1
----------
Tuesday, July 7, 2009
STATEMENTS PRESENTED BY SENATORS
Harkin, Hon. Tom, U.S. Senator from the State of Iowa, Chairman,
Committee on Agriculture, Nutrition, and Forestry.............. 1
Casey, Hon. Robert P., Jr., U.S. Senator from the State of
Pennsylvania................................................... 8
Chambliss, Hon. Saxby, U.S. Senator from the State of Georgia.... 2
Johnson, Hon. Tim, U.S. Senator from the State of South Dakota... 6
Pingree, Hon. Chellie, U.S. Representative from the State of
Maine.......................................................... 4
Thune, Hon. John, U.S. Senator from the State of South Dakota.... 7
Panel I
Adelstein, Jonathan Steven, Nominee to be Administrator, Rural
Utilities Service, U.S. Department of Agriculture.............. 11
Concannon, Kevin W., Nominee to be Under Secretary of Agriculture
for Food, Nutrition and Consumer Services...................... 13
Segal, Evan J., Nominee to be Chief Financial Officer, U.S.
Department of Agriculture...................................... 15
----------
APPENDIX
Prepared Statements:
Grassley, Hon. Charles E..................................... 26
Thune, Hon. John............................................. 27
Adelstein, Jonathan Steven................................... 28
Concannon, Kevin W........................................... 32
Segal, Evan J................................................ 34
Document(s) Submitted for the Record:
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Jonathan Steven Adelstein.................. 38
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Kevin W. Concannon......................... 81
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Evan J. Segal.............................. 100
Organizational letter of endorsement for Jonathan Steven
Adelstein.................................................. 129
Question and Answer:
Casey, Hon. Robert P., Jr.:
Written questions to Jonathan Steven Adelstein............... 132
Written questions to Kevin W. Concannon...................... 140
Written questions to Evan J. Segal........................... 143
Chambliss, Hon. Saxby:
Written questions to Kevin W. Concannon...................... 138
Klobuchar, Hon. Amy:
Written questions to Jonathan Steven Adelstein............... 132
Written questions to Kevin W. Concannon...................... 140
Written questions to Evan J. Segal........................... 143
Roberts, Hon. Pat:
Written questions to Jonathan Steven Adelstein............... 134
Stabenow, Hon. Debbie:
Written questions to Kevin W. Concannon...................... 138
Thune, Hon. John:
Written questions to Jonathan Steven Adelstein............... 135
Adelstein, Jonathan Steven:
Written response to questions from Hon. Robert P., Casey, Jr. 132
Written response to questions from Hon. Amy Klobuchar........ 132
Written response to questions from Hon. Pat Roberts.......... 134
Written response to questions from Hon. John Thune........... 135
Concannon, Kevin W.:
Written response to questions from Hon. Robert P., Casey, Jr. 140
Written response to questions from Hon. Amy Klobuchar........ 140
Written response to questions from Hon. Saxby Chambliss...... 138
Written response to questions from Hon. Debbie Stabenow...... 138
Segal, Evan J.:
Written response to questions from Hon. Robert P., Casey, Jr. 143
Written response to questions from Hon. Amy Klobuchar........ 143
HEARING TO CONSIDER THE NOMINATIONS
OF JONATHAN STEVEN ADELSTEIN,
KEVIN W. CONCONNON, AND EVAN J. SEGAL
TO THE U.S. DEPARTMENT OF AGRICULTURE
----------
Tuesday, July 7, 2009
U.S. Senate,
Committee on Agriculture, Nutrition and Forestry,
Washington, DC
The Committee met, pursuant to notice, at 10:07 a.m., in
room 328A, Russell Senate Office Building, Hon. Tom Harkin,
chairman of the Committee, presiding.
Present: Senators Harkin, Stabenow, Casey, Klobuchar,
Chambliss, and Thune.
STATEMENT OF HON. TOM HARKIN, U.S. SENATOR FROM THE STATE OF
IOWA, CHAIRMAN, COMMITTEE ON AGRICULTURE, NUTRITION, AND
FORESTRY
Chairman Harkin. The Committee on Agriculture, Nutrition
and Forestry will come to order. We are meeting today on a
hearing on the nominations of three individuals to take
important positions at the U.S. Department of Agriculture. We
will hear testimony from these three nominees chosen by
President Obama.
First will be Jonathan S. Adelstein for administrator of
the Rural Utility Service; Kevin W. Concannon for under
secretary for Food, Nutrition and Consumer Services; and Evan
J. Segal for chief financial officer. We welcome you to the
Committee, congratulate you on your nominations and commend you
for your willingness to serve.
The administrator of the Rural Utility Services plays a
vital role in helping farmers, ranchers and all rural citizens
and communities across our nation enjoy electricity,
telecommunications, including broadband, water, waste water
systems. These services are vital elements of economic progress
and quality of life for our rural communities.
Mr. Adelstein is a former commissioner of the Federal
Communications Commission and a former member of Senator
Daschle's staff when Senator Daschle was both majority and
minority leader, and also when he was a member of this
Committee. In both positions, he has helped in greatly crafting
and then carrying our rural broadband initiatives and
investments.
President Obama and Secretary Vilsack are to be commended
for luring Kevin Concannon out of a short-lived retirement in
Maine after serving as director of Human Services in Oregon,
Maine and most recently, Iowa. I can personally attest to his
ability and his dedication. Most notably during the devastating
Iowa floods last summer, he ensured that thousands of Iowans
received critical food assistance when they needed it.
Mr. Concannon's peers honored him in 2007 with the life
achievement award of the American Public Human Services
Association. I know Mr. Concannon will serve in this capacity
with the same skill and dedication that marked his tenure in my
state.
The chief financial officer of USDA is responsible for the
financial management and oversight of an enterprise with
100,000 employees, 14,000 offices and field locations, $128
billion in assets and about $77 billion in annual spending.
This is a very important responsibility, a position we entrust
with ensuring that taxpayer dollars are spent carefully to
achieve the intended purposes.
Evan Segal has a strong and successful background in
business. We look forward to his applying his talents and
experience to the financial management of the Department of
Agriculture.
Again, welcome to the Committee and I will now turn to our
ranking member, Senator Chambliss.
STATEMENT OF HON. SAXBY CHAMBLISS, U.S. SENATOR FROM THE STATE
OF GEORGIA
Senator Chambliss. Well thank you very much, Mr. Chairman,
and I appreciate, obviously, you holding this very important
hearing this day, but most importantly, I appreciate the three
gentlemen that we are here to review today and to hopefully
confirm in proper order. I welcome you, as well as your
families, to the Committee.
Mr. Adelstein, as we consider your nomination to serve as
the administrator of Rural Utilities Service, I recognize that
you are certainly no stranger to the Senate. Your 15 years as a
staffer here on the Hill will undoubtedly serve you well upon
your confirmation.
As you mentioned in your written comments, you were heavily
involved with expanding access to broadband service in rural
areas during the 2002 Farm Bill. Of course this will be an
issue that you will instantly inherit at RUS with 2.5 billion
authorized in the stimulus bill for such purposes.
Additionally, you are uniquely positioned with the
experience you will bring to the table from your recently
relinquished tenure as a commissioner of the FCC. The digital
divide is a real concern to rural and more sparsely populated
areas of our country. Those without access to internet service,
particularly broadband and high speed service, are
disadvantaged in many ways.
You well understand this and you know that the Worldwide
Web is at your fingertips and when it is, it opens countless
avenues to E-Commerce, online job applications and routine
daily chores like paying the bills and checking your bank
statement. It even can enable better farming practices.
In my home state, the Flint River Soil and Water
Conservation District partnered with the University of Georgia
to deploy a broadband pilot network for the main purpose of
irrigation, water management and water conservation. The system
communicates precise moisture levels and photos over wireless
broadband to producers' laptops or home computers, allowing for
optimum crop irrigation without ever overwatering.
They estimate a 15 percent reduction in water use since
employing that project. In the notice of funding availability
that the administration released last week for the stimulus
broadband initiative programs, they recognized that the
recovery act was intended for rapid disbursement of funds, but
also that the program must also be administered judicially to
ensure responsible use of public funds.
I agree that it is important not to sacrifice the quality
of projects simply for the sake of getting them done quickly.
Also, I would encourage you to extend broadband access to areas
that are unserved before deploying to those who already have
service options.
Obviously telecommunications are not the only area that the
RUS administrator oversees and I trust that you will equally
value the importance of the water and waste disposal and rural
electric programs that are crucial to rural communities. Having
represented a rural electric co-op for 25 years before I got to
Congress, I have a very special relationship with that group,
as I know you do, and we want to make sure that we treat that
organization fairly and in a way that allows for rural
communities to continue to get not only the best form of
electric service, but now with respect to telecommunications
and broadband service.
I am pleased to welcome Mr. Kevin Concannon as the
president's nominee to under secretary for Food, Nutrition and
Consumer Services. USDA's Food, Nutrition and Consumer Services
oversees 15 domestic nutrition programs and the Center for
Nutrition Policy and Promotion.
FNCS touches the lives of one in five Americans every year
and has an annual budget of over $60 billion, larger than many
cabinet-level departments. I am pleased that Mr. Concannon
brings to the table a distinguished career in administering
nutrition, health and human services programs in various
states.
Your previous public service makes you ready on day one to
take the helm of the FNCS mission area and oversee the
implementation of nutrition child programs of the Farm Bill, as
well as work with the Congress during reauthorization of the
child nutrition programs.
I am especially pleased that you have a strong record with
the Supplemental Nutrition Assistance Program, or SNAP,
formerly the Food Stamp Program. It is very important to me
that you maintain and build upon the recent years of success
and SNAP's payment, accuracy and participation rates.
SNAP has some of the most robust quality measures of all
Federal programs and public support for SNAP is strong due to
overall high performance. Congress will look to your leadership
to implement innovative approaches to improve payment accuracy
and participation rates among eligible people.
Your strong relationships with state administrators around
the company will be a major benefit to succeeding in this
endeavor. I look forward to working with you to ensure that
FNCS programs are effective tools to not only combat hunger in
the country, but also to improve the nutritional intake of all
Americans.
Mr. Chairman, I would note also that there seems to be a
continuing ring of nominees that come up here that have some
connection with Iowa.
[Laughter.]
Senator Chambliss. I don't know why that is, but it is a
great state. Finally, welcome to Evan Segal, a new face to the
Agriculture Committee. Senator Casey's introduction and his
comments about you that I have already reviewed speak to your
qualifications and I look forward to working with you as you
assume the position of chief financial officer at the
department.
Your extensive management and financial experience will be
an asset as you tackle the challenges ahead. The Department of
Agriculture is one of the largest of the Federal agencies, with
a Fiscal Year 2009 budget of $124 billion and approximately 7
percent of the non-defense Federal workforce.
You and I talked earlier about the fact that coming from
the private sector there can be a huge change in the atmosphere
when you deal with that kind of bureaucracy, but I know you are
going to be up to the challenge.
You will likely find that running the department's finances
will not be like those you are accustomed to, but I do have
confidence that your private sector experience will help you
navigate any problem you encounter. I also want to applaud your
commitment to public service. You are obviously a successful
businessman, have a strong commitment to philanthropy and we
would like to thank you for stepping out of those roles for the
foreseeable future in service to the department, its employees,
as well as the American people.
Mr. Chairman, I am pleased with the quality of these
nominees and upon completion of this hearing, I am hopeful that
we might expeditiously move these nominations in order to get
USDA fully staffed as soon as possible. Thank you.
Chairman Harkin. Thank you very much, Senator Chambliss,
and now for introductions of our nominees, I would first call
on our guest from the House side, Congresswoman Pingree. For
purposes of introduction, I am respectful of the fact that you
came all the way over here and you have obligations on the
House side also, to introduce Kevin Concannon.
I might just say that yes, we are proud that he was in
Iowa, but he was also in Maine too, and I think that is why
Congresswoman Pingree is here. I just want to welcome the
Congresswoman. I have known her for a long time, previously
majority leader in the Maine Senate and was the CEO of Common
Cause for a number of years and now in her first term here in
the Congress, strong advocate, I might add, for Children's
Nutrition Programs. So I can see the great connection between
you and Mr. Concannon.
So welcome to our Committee, Congresswoman, and for
purposes of introduction, I will recognize you at this time.
STATEMENT OF HON. CHELLIE PINGREE, U.S. REPRESENTATIVE FROM THE
STATE OF MAINE
Ms. Pingree. Thank you very much, Senator Harkin and
Ranking Member Chambliss. It is an honor to be here with your
Committee and to all the other members of the Committee, thank
you very much for allowing me to spend a couple of minutes
speaking about our great Maine native, Kevin Concannon.
I will say first, you are right, I am a newly elected
member of the House, so it is quite a treat to come over here
and visit with the Senate once in awhile, and I am also pleased
to be on the Agriculture Committee.
I may have mentioned to the chair before, but my family
were all Scandinavian immigrants who moved to Iowa when they
came here to this country and farmed there for many years in
Story City, so we got our start there and I also have a
background in agriculture, so while I do not serve on this
committee in the House, I am pleased to be with you at least
for a minute, and also very pleased to also just be here while
you are confirming or looking at the nomination for Mr.
Adelstein.
I got to know him a little bit when I worked at Common
Cause and he was on the FCC and you have a wonderful lineup of
nominees here today and I know he would also do great work for
our country.
But I am really here today just to say a few words about
Kevin Concannon and I truly am honored to introduce him, to be
in the presence of his family and to talk a little bit about
his great work in Maine, as well as Iowa and the State of
Oregon.
I first got to know him when I served as the Maine Senate
Majority leader, as you mentioned, and we did a whole variety
of work on child nutrition, on seniors, on TANF, on healthcare,
and most notably for me, on the area of prescription drugs and
availability of prescription drugs. Kevin was serving at the
time as the commissioner of Health and Human Services for an
independent Governor in Maine and he had an exemplary record of
outreach, but also working well with both sides of the aisle,
which was very helpful to me in my particular position.
He and I worked together on a bill to make sure we could
ensure more access for prescription drugs for our senior
citizens and I can say without a doubt that bill would never
have passed without the support of Mr. Concannon, his credible
work, his ability to work with both the Governor on both sides
of the aisle and all of the legal issues surrounding it.
It actually got a unanimous vote in the Senate in the State
of Maine and nearly unanimous in the House. Of course, it is a
little more rowdy body, as you know, but we passed and to his
credit, in 2003, when it was heard here at the United States
Supreme Court, because of his great understanding of the legal
work as well, it was seen to be approved by the Supreme Court.
So he has just an incredible record.
He is very well regarded in our state. He is seen as a
compassionate, enthusiastic and energetic public leader. He
manages very well at the interface between state and Federal
laws, which proved to be very helpful, certainly when I was
working with him, and I know it would serve him well in this
job.
He did a lot of interesting work, not just in the area of
healthcare and child nutrition, but also with people with
disabilities, the frail elderly, using a lot of creative
community options and alternatives to make sure everyone had
access to care.
He oversaw Maine's food stamp and WIC program, did
tremendous work around outreach and eligibility to simplify
that in making sure that all Maine residents who were eligible
had access to the programs that they needed. I just think that
his diversity of experience will serve him, this Committee, the
Department of Agriculture extremely well.
I cannot think of a better nominee. I cannot think of
anyone I have enjoyed working with more when he was in our
state and someone who comes with a greater reputation from the
other states that he has worked in. Should you choose to
confirm his nomination as under secretary for Food, Nutrition
and Consumer Services, I think that he will do an extraordinary
job in this time of tremendous need and I think he will put his
creativity and experience to work for this country and we will
all be well served.
So thank you for giving me the opportunity to speak about
Mr. Concannon and I hope that you choose to confirm him and I
think he will do very well. So thank you very much.
Chairman Harkin. Thank you, Congresswoman, very much. You
can stay if you like, but if your duties on the House side
require you to leave, we certainly understand that.
Ms. Pingree. I will stay a couple minutes, thank you.
Chairman Harkin. I would now like to turn to the two South
Dakota senators, Senator Thune and Senator Johnson. I guess,
how would I do this?
Senator Johnson. I am senior.
Chairman Harkin. You are senior, OK.
[Laughter.]
Chairman Harkin. I will turn to senior Senator Johnson
first and then Senator Thune.
STATEMENT OF HON. TIM JOHNSON, U.S. SENATOR FROM THE STATE OF
SOUTH DAKOTA
Senator Johnson. Chairman Harkin, Senator Chambliss and
members of the Committee, it has been a long time since I last
served on this Committee. It is good to see the Georgia
peanuts.
Chairman Harkin. Right.
Senator Johnson. I am pleased to introduce a fellow South
Dakotan, Mr. Jonathan Adelstein, as the Senate Ag Committee
considers his nomination for U.S. Department of Ag,
administrator for Rural Utilities. I can think of no one better
qualified for this important position than Jonathan. He brings
to this position an impressive background as an advocate for
rural America, as well as a dedication to working in a
thoughtful, bipartisan way.
His role as the commissioner of the Federal Communications
Commission and previous experience as a policy advisor to
former Senate Majority Leader Tom Daschle demonstrates his
talent and commitment to public service. I would especially
like to mention that as a staff member in Senator Daschle's
office, Jonathan was heavily involved in enacting legislation
in the 2002 Farm Bill which influenced the development of the
Rural Utilities Service Telecommunications Program to include a
broadband agenda.
It is only fitting that Jonathan now be entrusted with
administering the very same program he helped craft. Our rural
communities maintain diverse interests and needs and I am
confident Jonathan will expertly navigate these diverse
stakeholder concerns to ensure a vibrant future for our rural
communities.
Our rural America has an excellent voice in Jonathan and I
urge the members of this Committee and my Senate colleagues to
confirm Jonathan Adelstein's nomination. Thank you.
Chairman Harkin. Thank you very much, Senator Johnson.
Welcome back to your old stomping grounds here. It is nice to
see you.
We now turn to our distinguished member of this Committee,
Senator Thune.
STATEMENT OF HON. JOHN THUNE, U.S. SENATOR FROM THE STATE OF
SOUTH DAKOTA
Senator Thune. Thank you, Mr. Chairman, and Senator Johnson
stated it well, but I also want to join him and congratulate
Jonathan and welcome him to the Committee and look forward to
him being confirmed to this important position.
I want to thank our other noms for their willingness to
serve as well. These are important jobs, but there are a few
people in public service today, Mr. Chairman, who have a better
understanding of rural issues, particularly telecommunications
issues, than does Jonathan Adelstein. Jonathan, as Senator
Johnson noted, has served on the Federal Communications
Commission for the past 7 years.
He was confirmed twice by the U.S. Senate, both in 2002 and
2004, to that position.
He has been an outspoken advocate on behalf of consumers
and carriers in rural America. Whether it is spectrum
allocation or universal service or broadband access, rural
consumers could always count on Jonathan's leadership within
the Federal Communications Commission and I think it is very
fitting that he be nominated to serve as director of the Rural
Utilities Service, particularly as the RUS begins to deploy $2
billion in rural broadband assistance. His experience with
rural telecommunications issues is going to come in especially
handy and I think prove to be an invaluable skill set as he
comes into the job.
High speed broadband is key to economic development in
rural areas. It is absolutely essential that as we distribute
these funds, that it be done in the most efficient and
effective way possible, particularly in unserved and
underserved areas, and I am confident that Jonathan is the
right person for that job.
Before serving on the FCC, as Senator Johnson noted,
Jonathan had a very distinguished career here on Capitol Hill,
working legislative issues for a 15-year period, dealing with
telecom, housing, transportation, financial services and prior
to that, was a teaching fellow at Harvard University's Kennedy
School of Government and also at Stanford as a teaching
assistant in the Department of History.
He has MA and BA degrees from Stanford University, so
terrific academic background. I believe his diverse experience
makes him uniquely qualified for this position and particularly
when you look at the important challenges that we have in front
of us when it comes to rural infrastructure programs in this
country, whether that is water, electricity,
telecommunications, you name it.
So Mr. Chairman, this Committee has a long history of
bipartisanship, as does the Adelstein family. Jonathan is
originally from Rapid City, South Dakota, where his father, who
is with us today, Stan, serves as a state legislator, as well
as a successful businessman and philanthropist. The Adelstein
family has a proud tradition of public service and I want to
welcome Jonathan, as well as his family members, his wife,
Karen, and his children, Adam and Lexi, to the Committee today
as well. They live here in the Washington, D.C. area.
So Mr. Chairman and Senator Chambliss, I congratulate
Jonathan on this nomination. As I said before, I cannot think
of anyone more qualified to perform the important duties that
are associated with this position and I hope that we will
quickly confirm him into the job so he can begin going to work.
Thank you, Mr. Chairman.
Chairman Harkin. Thank you very much, Senator Thune. And
now for introduction of Evan Segal, I turn to another
distinguished member of this Committee, Senator Casey, from
Pennsylvania.
STATEMENT OF HON. ROBERT P. CASEY, JR., U.S. SENATOR FROM THE
STATE OF PENNSYLVANIA
Senator Casey. Mr. Chairman, thank you very much and I
appreciate the prompt action on scheduling this hearing. I know
how busy you are as a member of several committees, including
the Health Education Labor Pensions Committee, as we deal with
healthcare reform, so we are especially grateful for your work
in scheduling this hearing and I want to thank our ranking
member, Senator Chambliss, as well.
I want to commend the two nominees that are here with us
that I will not be speaking about, but I want to commend them,
Mr. Adelstein, Mr. Concannon. Mr. Concannon was nice enough in
one of our--during the midst of a hearing to meet with us in a
hallway, which was particularly--we are particularly grateful
for that in the midst of our schedule.
But I am here to speak about someone who is my friend and I
should be very candid about that, he is a friend of mine and so
some of what I say might reflect that friendship. But I think
it will be an objective assessment of his record, his character
and his ability to lead as the chief financial officer for the
United States Department of Agriculture.
Evan Segal's reputation as an outstanding business owner
and his commitment to public service makes him an excellent
choice for this position, the chief financial officer of such a
big Federal Government agency and such an important agency, to
places like the Commonwealth of Pennsylvania, but really across
our country.
Evan is a former owner and president of Dormont
Manufacturing Company, the nation's leading manufacturer of
flexible stainless steel gas appliance connectors. During his
time as the CEO of that company, and just imagine this, those
of us who think we can run things, he oversaw the dramatic
growth of the country--the company I should say, from sales of
5 million to sales of 60 million, creating 250 jobs in the
process.
He is currently an executive in residence at the Carnegie
Mellon University Tepper School of Business and he serves as a
mentor for startup companies. In addition to his business
qualifications, Evan has a long history of service to his
community, for groups like the Community Day School, the Evan
and Tracy Segal Family Foundation, the United Jewish Federation
of Pittsburgh's Management Committee, and the Carnegie Mellon
University Tepper School of Business that I mentioned before. I
have no doubt he can do this job and I have no doubt he can do
this job well.
But I have to say in a personal way that our commonwealth
is very proud of you, Evan, today. It is rare that a state can
send someone to Washington at such a high level in such a
significant agency at a very important time in our nation's
history, when we are dealing with a world and national economic
crisis, we are dealing with the ravages brought about by that
and hunger and people not having enough to eat and all of the
ramifications for the Department of Agriculture, as well as a
tough time for our farmers and their families.
We are grateful that you would be willing to serve, so our
commonwealth is proud of you and you should know that as you
start. I know that Tracy is proud of you. She was before today
as well, and that Tess and Ariel are proud as well. But I know
Evan Segal to be tough, smart and honest and we can ask for no
more from our public officials, whether they be elected or
appointed.
Finally, let me say that one of the things that has guided
a lot of people who serve in public office is a set of
principles. One of them--one of those principles is etched into
the building in our state capital, the finance building where I
used to work. It says very simply, all public service is a
trust given in faith and accepted in honor.
I have no doubt that Evan Segal, as an important member of
the team at the Department of Agriculture, lead by Secretary
Vilsack, who has roots in Pennsylvania, but Iowa gets to claim
him as well, but I know that as part of that team that Evan
will live by that, that motto that public service is a trust,
that it is given to those of us who have a chance to serve with
a sense of expectation that we are going to discharge the
responsibilities we have with honor.
Evan, I know you are prepared for this job. We look forward
to your speedy confirmation. I cannot stay for the hearing
today because like Senator Harkin, we have to eventually get
back to our Health Committee meeting, markup actually. But I am
grateful that you are willing to serve. We are proud of you and
God speed.
Chairman Harkin. Thank you all and now that you have all
been formally and duly introduced, I have two housekeeping
things. First, I must administer an oath and I would ask you,
all three, to rise and raise your right hand.
Do you swear or affirm that the testimony you are about to
provide is the truth, the whole truth and nothing but the
truth, so help you God?
Mr. Adelstein. I do.
Mr. Concannon. I do.
Mr. Segal. I do.
Chairman Harkin. Thank you very much and you may be seated.
Do each of you agree that if confirmed, you will appear--this
is an important question--do you agree that if confirmed, you
will appear before any duly constituted committee of Congress
if asked to appear? Mr. Adelstein?
Mr. Adelstein. I do.
Chairman Harkin. Mr. Concannon?
Mr. Concannon. I do.
Chairman Harkin. Mr. Segal?
Mr. Segal. I do.
Chairman Harkin. Thank you all very much. And now, we will
turn to opening statements in alphabetical order, Mr. Adelstein
and then Mr. Concannon and Mr. Segal. If you could keep your
statements within five to 7 minutes or so.
We also like to ask our nominees to introduce their family
members. I know Mr. Thune mentioned that you had some family
members here and others, so Mr. Adelstein, I will recognize
you, your statement. All of your statements will be made a part
of the record in their entirety. I will just ask you to
summarize them, but before you do that, Mr. Adelstein, how
about introducing your family who is with you?
Mr. Adelstein. Well thank you, Mr. Chairman. I would love
to. My wife, Karen is here, who has put up with the life of a
public servant for a long time and supported me through
everything. My son, Adam, is here, who is skipping camp for
this. His sister, Lexi, did not skip camp. She is in camp, but
she would love to be here as well.
My father is here from South Dakota. Senator Chambliss
mentioned there is an Iowa connection everywhere. He was born
in Sioux City, so I guess that is mine.
Chairman Harkin. Well he did not move too far.
Mr. Adelstein. All the way to Rapid. But he is also a state
senator, as Senator Thune mentioned, and chairman of the Health
Committee in the South Dakota State Senate, so very interested
in what you are up to over in the Health Committee.
Chairman Harkin. When we are through here, do you want to
come next door? We are having our Health Committee markup
there, as Senator Casey said.
Mr. Adelstein. My niece Shirley and her fiance, Josh, are
here as well. Love to have them. My brother, Col. Dan
Adelstein, is here, who also is a public servant, serving in
the House of Representatives as a staff member for Geoff Davis
of Kentucky. His wife, Judy, is also a public servant--we have
a lot of this in the family--who is a person that works at the
FDA. So we are--my brother-in-law is here, Ike Brenner, and his
wife, Jennifer Brenner. We thank you for coming and that is a
good crew of family from----
Chairman Harkin. Very good. Thank you very much for being
here.
[Applause.]
Chairman Harkin. Great family. Please proceed, Mr.
Adelstein.
STATEMENT OF JONATHAN STEVEN ADELSTEIN, NOMINEE TO BE
ADMINISTRATOR, RURAL UTILITIES SERVICE, U.S. DEPARTMENT OF
AGRICULTURE
Mr. Adelstein. Mr. Chairman, thank you very much, and
Senator Chambliss, members of the Committee, thank you so much
for holding this hearing. It is a great opportunity to appear
before you as the nominee to be administrator of the Rural
Utilities Service.
I am deeply grateful to President Obama for nominating me,
Secretary Vilsack for supporting that nomination. Mr. Chairman,
it is largely due to your leadership and that of many members
of this Committee, that the RUS now has a unique opportunity to
help restore economic prosperity for the president's stimulus
package.
To meet the high expectations that you have rightfully set
for the RUS, I will draw upon what I learned as a four
generation South Dakotan. My great grandmother homesteaded in
the Badlands and thrived there along with so many of her
neighbors that were scattered around because they pulled for
each other.
Her son, my grandfather, began a long family history of
improving rural infrastructure. He started a construction
company back in 1925 that my father, who I just introduced,
took over and made that thrive before moving on into retirement
to his own career in public service. His idea of retirement is
being here in the winter time.
The motto of our family company remains with me even now,
builders of better bridges and highways. Mr. Chairman, if
confirmed, I will carry that motto with me to the RUS. Now of
course, in the 21st Century economy, it means more than just
roads. Through technology, people can connect in ways that my
great grandmother could not have possibly imagined.
Small communities once faced economic extinction without
access to the highway system that my family helped to build out
there. Today they depend upon access to the main arteries of
the communication system, the power of our electrical
infrastructure and plentiful sources of clean water.
RUS has a critical role to bring these benefits to rural
Americans. RUS strives to support utilities that are as good as
any in the nation. As commissioner of the FCC over the last 6
years, as Senator Thune and Senator Johnson mentioned, I have
worked on a bipartisan basis to help meet the communications
issues facing rural America. It is clear to me from what I have
learned that we need to upgrade our infrastructure in every
corner of this country.
We need to make new technologies more widely available and
affordable to everyone no matter where they live, what
challenges they face, whether they have disabilities. We are
going to make sure that everybody has access to the miracle of
broadband. I have aggressively promoted broadband deployment
and adoption on the FCC, but even though we made real strides,
I have been frustrated that we have not done more. We are not
keeping pace with our global competitors. We need to restore
our place as the undisputed world leader of communications
technology and rural America is the most important place to
start.
The role of the RUS is to ensure that all the rural pipes,
electric, telecommunications, and water are affordable to all
and second to none. This is not only critical for the future of
rural America, but to our country's overall economic growth.
In the 15 years I served on the staff of Senate Majority
Leader Tom Daschle, I saw firsthand the commitment that
Congress has made to rural Americans. If confirmed, I will use
that experience, and of course, your guidance, to maximize the
effectiveness of RUS as Congress envisioned.
In fact, as Senator Johnson pointed out, one of my proudest
achievements in the Senate was advising Senator Daschle during
the 2002 Farm Bill Conference. Mr. Chairman, you and Senator
Daschle really took the lead on creating provisions to expand
the scope of RUS to include support for broadband.
Rich Bender and Shawnee Wiggins and I kind of camped out at
the conference here to make sure that that program worked.
Along with you and your staff, Mr. Chairman, we helped move the
RUS into the 21st Century, beyond just voiceovers to the
broadband world. The administrator at the time was Chris
McLean, who is here now, and he gave us some good guidance
along the way as well.
It would be a special honor if confirmed to implement the
program to make sure that it works well. We need to help young
people who want to stay in the small towns, farms and
communities where they grow up to find economic opportunities
if they want to stay there. Modern utilities are essential to
address their needs on so many levels, just to name a few, in
terms of health, education, public safety, employment and the
general quality of life.
These systems are the backbone of our economic development
efforts. If confirmed, a special party that I would be eager to
address is American's need for renewable energy. There is also
a pressing need for safer drinking water, better waste water
systems for many of our rural communities, which are essential
to the health of our citizens.
All of this can be done in a way that promotes diversity,
respects civil rights and all of our program and employment
practices. Mr. Chairman, if confirmed, I will work to continue
the proud family tradition we have of building better bridges
and highways. Thank you for the opportunity to testify.
[The prepared statement of Mr. Adelstein can be found on
page 28 in the appendix.]
Chairman Harkin. Thank you very much, Mr. Adelstein. And
now we will turn to Mr. Concannon, and Mr. Concannon, if you
would introduce your family members who are here with you.
Mr. Concannon. Thank you very much, Mr. Chairman. I would
like to introduce my wife, Eileen, is over here on the right-
hand side, and my second oldest son, Michael, in the middle
here with the yellow tie, and then our son Steven, and then our
youngest son, John, and our granddaughter Catherine Concannon.
Two of these folks are from Maine, from southern Maine, and
my son Steven lives just outside of Boston. So thank you very
much.
Chairman Harkin. Thank you for being here.
[Applause.]
Chairman Harkin. Especially Catherine.
STATEMENT OF KEVIN W. CONCANNON, NOMINEE TO BE UNDER SECRETARY
OF AGRICULTURE FOR FOOD, NUTRITION AND CONSUMER SERVICES
Mr. Concannon. Chairman Harkin, Ranking Member Chambliss,
members of the Committee on Agriculture, Nutrition, and
Forestry, I am Kevin Concannon, appear before you as the
nominee for under secretary of Food, Nutrition and Consumer
Services.
I want to thank Congresswoman Chellie Pingree of Maine's
1st Congressional District for that very generous and kind
introduction. She and I work very well together and I look
forward to working with her and members of this Committee if
confirmed.
I am most grateful to President Obama and to Secretary
Vilsack for placing their confidence in me, especially at this
time in this challenging economy and when our country is so
mindful of the millions of our fellow Americans facing the
struggles of food insecurity, poor nutrition, obesity and the
resulting health problems and costs associated with these
circumstances.
I am passionately committed to the obligation we share to
those less fortunate among us and should the Senate vote to
confirm my nomination, I will work diligently to provide the
leadership and sound stewardship over these portfolios of food,
nutrition programs and consumer services.
In my roles as a state health and human services director
in Iowa, Maine and Oregon, among parallel program
responsibilities, I have overseen and championed USDA programs,
including the Supplemental Nutrition Assistance Program,
formerly the Food Stamp Program, WIC, Women, Infants and
Children, the Emergency Food Assistance Program, and have
advocated for the School Lunch, School Breakfast and Summer
Feeding Programs.
Last year in Iowa, with widespread devastation caused by
tornadoes and unprecedented flooding, emergency disaster food
assistance and SNAP benefits were among the first and vital
elements in assisting thousands of Iowans adversely affected by
these natural disasters.
I had similar experience with these programs a decade ago
in Maine during a major winter ice storm and its extended
aftermath, so I know firsthand these are essential safety net
programs. Providing ready access to nutritious, affordable food
through these USDA programs is an expressed goal of President
Obama, Secretary Vilsack, many members of this Committee and
throughout Congress.
Iowa has been a leader in promoting local farmers markets
as a venue for affordable produce through SNAP and wireless
technology. If confirmed, I will continue to promote through
USDA programs such as SNAP and WIC, expanded access to farmers
markets, both for the benefit of our program enrollees and
growers, but I will also continue to advance the understanding
and perspective I espouse as a state official. These programs
are purposely and strategically in the Department of
Agriculture because at their core, they reflect the output of
American farming.
Programs such as SNAP benefit at least three major groups
of Americans, the 34 million current recipients of the program,
nearly half of whom are American children, food suppliers, food
stores, retail outlets, and the farmers who ultimately grow the
food.
I feel especially fortunate and honored to be here today as
a first generation American. My parents, now deceased, were
Irish immigrants, naturalized citizens who conveyed to their
children among other human values, a sense of our good fortune
as Americans, our obligation to others, and our respect for
government.
While there is no shortage of challenges and obligations
within the FNCS at USDA, should the Senate choose to confirm
me, I will also work to find common cause with other sectors
within USDA, with sister Federal agencies such as the Centers
for Medicare and Medicaid, the Centers for Disease Control and
Prevention, the Administration for Children and Families in the
Health and Human Services Department, and the U.S. Department
of Education, who share responsibilities in areas of focus that
impact American consumers and particularly low-income children
and adults.
From my state level experience, I know that some of our
most effective initiatives are those that help people, were
those that cut across organizational boundaries and
limitations. Importantly, I have enjoyed the many opportunities
and outcomes of working with Governors and state and Federal
elected representatives. If confirmed, I pledge to work with
members and staff of this Committee and other parts of Congress
and meeting our obligation to the American people through the
programs and services of the Food, Nutrition and Consumer
Services.
Finally, I wish to express my love and appreciation to my
wife, children, their families and my brothers and sisters for
their support and encouragement over the years, my years in
public service. They have made sacrifices and their particular
enthusiasm for this opportunity for me to serve in a national
leadership role is really one of the energizing factors for me.
Finally, I thank you for your consideration and look
forward to responding to your questions.
[The prepared statement of Mr. Concannon can be found on
page 32 in the appendix.]
Chairman Harkin. Thank you very much, Mr. Concannon. And
now, Mr. Segal, we will turn to you and I see you have family
members here too.
Mr. Segal. I do.
Chairman Harkin. Please introduce them to us.
Mr. Segal. Absolutely. Well, we are represented from both
sides of the state. I have my wife, Tracy, and our daughters,
Tess and Ariel, and my parents, Jerry and Monica Segal, all
from Pittsburgh, and then from--in addition, my brother, Eric,
and my niece and nephew, Jory and Julia Segal.
Then from Philadelphia, I have my sister-in-law and
brother-and-law, Deborah and Peter Houston, their son, Geoffrey
Mills, and their grandson, Sean Mills, and in addition, my
cousin, my nephew, Brian and Graham, also from Philadelphia. So
I am glad they are all here and we are excited.
Chairman Harkin. Great family.
Mr. Segal. Thank you.
[Applause.]
STATEMENT OF EVAN J. SEGAL, NOMINEE TO BE CHIEF FINANCIAL
OFFICER, U.S. DEPARTMENT OF AGRICULTURE
Mr. Segal. Mr. Chairman, Senator Chambliss, and the
distinguished members of the Committee, I am honored to be here
today as the president's nominee for the chief financial
officer of the United States Department of Agriculture.
I also want to thank Senator Casey, not only for his kind
words, but for his leadership, his intelligence and his
integrity in representing the State of Pennsylvania. My journey
leading me to today's meeting really began 30 years ago, when I
worked several summers in my father's factory sweeping the
floors, picking up shop towels, assembling products and running
production machines.
It was a great opportunity to learn the business from the
bottom up and develop relationships with those people whose
hard work and sweat are the backbone of our country. I had the
fortunate opportunity to attend Carnegie Mellon University in
Pittsburgh, where I earned both a BS and an MBA from the Tepper
School of Business and I had the opportunity to learn many
skills, tools and concepts that have prepared me for my
business career.
One of the strongest lessons was the opportunity to work in
teams with highly talented people in a high pressure
environment. Upon graduation, I joined Scott Paper Company as a
financial and strategic planning analyst. At Scott, I was able
to actively participate in the management of a large
organization with many complex operations. I learned the
importance of disciplined systems, structures, processes,
lessons that would serve me well throughout my career.
After several years at Scott, I decided to return to
Pittsburgh to join my father at Dormont Manufacturing Company.
Dormont manufactured flexible, stainless steel gas appliance
connectors, the metal hose that is used to hook up gas
appliances to the gas supply line. Over the next 20 years, we
significantly expanded the business and created many new jobs.
We were highly focused on integrating world class
management processes into our business and scaling them to help
achieve our goals. Along with an incredible group of talented
people, we began to utilize quality management tools, including
lean manufacturing and Six Sigma. We focused on developing and
training our people to manufacture and deliver the highest
quality gas connectors in the world at a competitive price and
with an unmatched level of customer service.
The ability to effectively execute and implement our goals
enabled us to create a highly successful business. In addition,
I had the opportunity to work with a wide range of customers,
suppliers and end users from all around the United States and
around the world. For all of our customers, regardless of size,
which range from some of the largest corporations to small
family businesses, we were committed to their success.
Over the past 3 years, I have been fortunate enough to be
able to give back through my active involvement in several
philanthropic organizations. These different experiences have
helped make--have given me many invaluable lessons that upon
confirmation I think will help me succeed in my role as the
chief financial officer at the Department of Agriculture.
First there was the phrase that my father taught me. People
do not care how much you know until they know how much you
care. In this case, caring means a deep respect for the people
that you work with, the conscious need to listen to their
ideas, thoughts and opinions and the desire to help them
succeed, whether it is in the workplace, the global arena or on
the athletic field, success starts with people who are willing
to work together toward a common goal.
Second, successful organizations highly focused on the
implementation of its strategies and goals, recognizing that it
needs to work smart and to utilize the skills, tools and
knowledge to meet and exceed those objectives. This starts with
active listening, learning from past successes and failures and
building on the cumulative wisdom of the organization.
The next step includes the development and alignment of the
organization's mission with its strategies, goals and
objectives. Next is perhaps the most challenging part, which is
successful execution. This includes the development and regular
monitoring of well defined goals and metrics. Finally, it
includes working collaboratively with all stakeholders to
implement the changes to help achieve the agreed upon goals.
Third, through our commitment at Dormont, world class
quality and zero defects, I learned the importance of utilizing
the skills and talents of our people, combined with well-
defined processes, to increase quality, improve efficiency,
eliminate waste and lower costs.
It is possible to improve customer service and lower costs
through collaborative teamwork and effective implementation of
proven systems and processes. I understand that the Department
of Agriculture is a highly complex organization that supports a
wide range of missions in various areas of responsibility. It
is also a department that has many highly talented, experienced
professionals who work every day to fulfill the mission of the
Department of Agriculture.
The Office of the Chief Financial Officer encompasses a
wide range of responsibilities, including financial systems,
financial policy and planning, financial operations and the
National Finance Center. These activities include active
involvement in strategic planning, ongoing accounting
operations, audit and internal control functions, financial
reporting, and cost-effective systems and services to other
Federal organizations. Fortunately, the Office of the Chief
Financial Officer already has a tremendous staff that does an
excellent job everyday in fulfilling these important
responsibilities.
I look forward to this wonderful opportunity to serve our
country in working with this talented team of professionals. I
understand the critical importance of carefully managing the
financial systems of the department and upon confirmation, I
will work effectively, collaboratively and with great diligence
to support the goals of the Obama Administration for the
Department of Agriculture.
In addition, I want to state my commitment to civil rights
at the department. I will work hard to ensure the department's
employment practices will not tolerate any form of
discrimination. I will build upon my experience and knowledge
and lessons learned as a successful business owner, corporate
executive, entrepreneur and educator to provide the leadership
and financial management skills to support the department and
its stakeholders.
Finally, I want to thank my wife and my family for
providing unconditional love and understanding in all my
endeavors. Their support has enabled me to realize the many
successes in my career and allowed me to be here today. I also
want to thank the members of the Committee for this opportunity
to appear before you today. Thank you.
[The prepared statement of Mr. Segal can be found on page
34 in the appendix.]
Chairman Harkin. Thank you very much, Mr. Segal. Thank you
all for very great statements, and again, I congratulate each
of you on your nominations and we will do what we can to
expedite this.
I just have about one question for each of you. Mr. Segal,
since 2000, the Risk Management Agency has successfully
utilized data mining of information on the operation of the
Federal Crop Insurance Program to detect potential fraud and
abuse and achieve considerable program savings. I believe that
this technique has also been used with some success in recent
years in detecting fraud in the SNAP, in the Food Stamp
Program.
Will you commit to looking into how this tool might be used
for other USDA programs which make significant payouts to large
numbers of individuals? And in particular, I would ask that you
call in a former colleague of ours on the House side--well I
served with him in the House before I came to the Senate; well
you did too--Charlie Stenholm, a former ranking member of the
House Agriculture Committee, who has briefed my staff on this
and brought to our attention the savings that were obtained by
this data mining of information?
I don't know if you have looked at that or not. If you
haven't, I would just ask that you please take a look at that.
Mr. Segal. Absolutely, Senator, and upon confirmation, I
would be glad to look at not only that, but all tools that
really look at how we can run the department more efficiently
and more effectively.
Chairman Harkin. As I mentioned in my statement, how many
offices you have and how many people, you are spread all over
the country, I mean, the world. For a chief financial officer
to have that many different locations and different people in
every aspect of agriculture, that is a big job, so in any ways
that we can find and how we can achieve savings and streamline
things and bring things up to modern standards.
Of course, one of the big problems you have, you probably
already know this already, is your outdated computer system.
Senator Chambliss I know has wrestled with this. I have, a lot
of us have wrestled with how we are going to leapfrog that and
get that up to present standards.
So I would be looking forward to any suggestions that you
have to us on how we do that. If you have any statements on
that, I would be glad to listen to it right now, just on how we
get that outdated computer system up to present standards.
Mr. Segal. I think it really goes back to the basic
problem-solving methodology, whether it is the computer systems
or whatever. Obviously, coming from Carnegie Mellon, having
some good background with computer systems--but I think it is
fundamentally--and I think you and the Committee members have
dealt with this for a number of years, it is initially--and
this comes from some of the Six Sigma methodology, but really
defining the problem and then understanding what the goals or
objective are in terms of what we are trying to do, what are
the specific opportunities that we can to move ahead, and then
put in place those fixes both short term and long term.
I think that once you have a problem-solving methodology
that is effective, and that is really essentially what a Six
Sigma methodology is, it is a problem-solving methodology that
can be applied to whether it is the IT infrastructure or the
crop insurance fraud or data mining, whatever it might be, it
is using a methodology that is proven, that is successful in
making it work.
I really look forward upon confirmation working with you
and the members of the Committee and would be glad to meet with
you and your staff to address any specific concerns that you or
Senator Chambliss or other members of the Committee might have.
Chairman Harkin. OK, thank you very much. I look forward to
that. Mr. Concannon, Food, Nutrition and Consumer Services, I
think this Committee and our counterpart in the House side, we
have been very good at promoting the production of food in this
country, no doubt about that. Look at the success we have had
since World War II.
But now we have another problem and that is nutrition. We
know the growing rates of obesity in this country. We know the
problems of hypertension and diabetes, all the things that are
affected by early nutrition programs. And so this year, as you
know, we are supposed to reauthorize the Child Nutrition Bill,
School Lunch and School Breakfast Programs. I hope we can get
that done before the end of the year.
I am kind of just curious about your previous experiences
in those areas touching on child nutrition and any thoughts you
might have on where we should be headed. Now as you know, one
of the things that we are contemplating, it is going to be, at
least in our chairman's mark on the bill and I think on the
House side too, and that is, giving the secretary of
Agriculture the authority to regulate all of the food in
school.
Right now the secretary just has the authority to regulate
the food in the lunchroom, so you go outside the lunchroom down
the hall and there are the vending machines and all the junk
food. So we are contemplating--I shouldn't use the word--we are
going to start the process of having the secretary have
jurisdiction over all the food in the school so that the
nutritious foods that we put in the School Lunch and School
Breakfast Programs are not undermined by the vending machines
and a la carte lines and that type of thing in our schools.
I just invite you, any thoughts you might have on that,
things that you might look forward to doing in the nutrition
area. You mentioned that farmers--farmers markets. You did a
great job in Iowa on that and I commend you for that. And where
we did the wireless technology where people could go with their
coupons--not coupons, but----
Mr. Concannon. EBT cards.
Chairman Harkin. EBT cards. EBT cards. And have it
immediately swiped in the farmers markets, I think that worked.
Mr. Concannon. Yes.
Chairman Harkin. I think it worked well. Any thoughts about
expanding that?
Mr. Concannon. Yes indeed, Senator. I am very interested in
seeing what we can do, both--I know the secretary has mentioned
that, and the president, in his concern about the very issues
you cite, obesity and promoting sounder nutrition for
Americans. Clearly the fact that the USDA, the programs, even
in the Food Nutrition Service, amount to nearly $80 billion
annually in expenditures. The good news is the impact that it
is having in terms of providing access to food for people.
But we recognize, just as you have cited, the growing
concern in the country, the phenomenon of obesity- and
diabetes-related health issues. I am very mindful before I
start, and should I be confirmed, of the opportunities to work
with other Federal agencies, the CDC, the Centers for Medicare
and Medicaid.
I reflect back on state experience in dealing with smoking,
as an example, and some of the most effective anti- smoking
efforts we took were not those isolated in the public health
sections of state agencies, but those that cut across to
Medicaid to the Child Welfare Agencies, to the TANF programs.
So I am very anxious to look at what the history has been
so far of our mutual efforts, mutual aid efforts with other
enforcers on the Federal side and partners in the state and
local agencies to try to deal with this. I know it is--in part
it is a cultural thing. We have evolved to this over the past
30 or 40 years and it is going to take efforts on a number of
fronts.
To your question about schools, I know at the state level
we often encounter the issues of schools frequently raising
funds through their soda machines and other avenues in the
school for extracurricular activities. We got considerable
pushback to our efforts to try to again have a more coherent
policy of nutritious food. So I am very anxious and would be
happy to work with the Committee on that.
Chairman Harkin. Thank you very much, Mr. Concannon. We
look forward to working with you on that also. There are some
bumps in the road, but I think they can be overcome; I really
do.
Mr. Adelstein, again let me thank you for all your work in
the 2002 Farm Bill. You mentioned that in your statement, in
getting the broadband provisions in there. It did not quite
work out exactly like we thought they were going to work out
and there were some problems there, but as you know, we just
put, what was it, 2 billion, 2 billion, right, in the stimulus?
Two billion in the stimulus for----
Mr. Adelstein. 2.5.
Chairman Harkin. I stand corrected, 2.5 billion in there
for broadband. So now we want to do it again, but we want to do
it right and we want to get that money out there.
I do not think we are ever going to see that kind of money
again ever for getting broadband technology out to our smaller
communities and it is so important. We talk a lot--you know,
this Committee is viewed upon a lot of times just as we are
farmer oriented, but we have to be looking at the
infrastructure also.
So many of our small communities that our farmers rely on
are drying up, and when they do not have businesses that they
can deal with or even schools to go to, where kids are going an
hour in the morning, an hour at night just on a bus to school,
they leave when it is dark, they come home when the sun is
setting in the wintertime--a lot of times even our churches are
closing up. They have to go an hour away just to get to a
church on Sunday.
So the infrastructure is kind of crumbling. I am reminded
of a small business in a small town in Iowa that was growing.
It was an insurance business and had they had broadband, they
would have been--they had a new product they were--had they had
broadband, they would have been able to expand their business
in that town. They didn't, so they moved to Des Moines.
Well good news is it is still in Iowa. Bad news is it is
not out in that small town where they could have added 25
people to the work rolls because they didn't have broadband.
So that is just all preface, just saying that we really
have to work hard to get this money out in the way that it is
intended, to get to the small communities. And a lot of times a
lot of these small communities, when they put in their
applications, they may not have skilled grant writers that the
bigger communities have and they may make mistakes on their
applications and a lot of times they get shunted aside.
I hope you will commit yourself to making sure that your
staff works with these really small communities to help them.
If they make mistakes, get back and work with them and get it
worked out so they have an adequate chance of getting this
funding also.
So that is just my way of first thanking you for your past
work on it, but sort of throwing the challenge to you now. You
know the background. You know what needs to be done, but making
sure that we get that broadband out there to these small
communities that really need it.
Mr. Adelstein. Well thank you, Mr. Chairman. Thank you for
giving us the opportunity to do that. This is an unprecedented
level of resources and that means an unprecedented level of
responsibility to get it right.
At the same time we need to get it right, we have to get it
out fast in order to stimulate the economy. We saw the job
numbers this week and we cannot afford to wait. And yet, we
cannot afford to waste a dime of taxpayer money, so it is going
to be an incredible challenge for the RUS.
Customer service is key. I think we need to be as
responsive as we can to these small communities. You should not
have to hire a grant writer or hire a consultant to be able to
get money for a small rural town, to somebody who is gathering
together. We will work with state governments. We will work
with non-profits. We will work with anybody and try to find the
best projects that are--you know, really get broadband where
they need to be.
Senator Chambliss laid out a great example of that pilot
project in Georgia. There are so many examples. You can go on
and on about it. I have seen them in my years on the FCC, of
how broadband can transform opportunities in rural areas,
economic opportunities, cultural opportunities, educational,
healthcare, the list goes on and on. And if we do not get this
right, you said, we may never get this amount of resources
again. We may not get any more resources from Congress if we
cannot prove to you that we were able to use that money wisely.
I commit to you to do everything in my power to make sure
we use it wisely, effectively and get broadband out to every
part of the country that needs it, that we can afford to with
the amount of resources you provided.
Chairman Harkin. I appreciate that very much.
Congratulations again to all of you. Thank you very much and I
will turn to Senator Chambliss.
Senator Chambliss. Thanks, Mr. Chairman. Mr. Adelstein,
continuing with that line of the 2.5 billion in the stimulus
package for broadband, the I.G. issued a report back in March
of this year in which he stated that the overwhelming majority
of communities, in fact 77 percent, receiving service through a
broadband program already have access to technology without the
RUS program and when I talked in my opening comments about the
fact that we really do need to get this money in unserved
areas, that is an example of why.
I know you are aware of that, but it really is important
that we spend the money No. 1, and that has been one of our
issues; we have not been spending all of the money that is
there. But now we have some new opportunities. But we do need
to make sure that folks in rural Iowa, as well as rural Georgia
and rural Texas, are getting access to broadband.
I urge you to address this early and to really figure out
innovative and creative ways that we can make sure it gets to
those people that you talk about that do not have the resources
to come in with a huge grant writing capability.
I want to talk for just a second about nuclear energy. I
realize that once confirmed you are going to report to
Secretary Vilsack, but I recently saw where the Department of
Energy Secretary Steven Chu said that nuclear energy, and I
quote, ``has to be a part of the mix.'' And he described it as
a clean base load energy resource.
Georgia, my electric co-ops, as well as the municipal
systems and Georgia Power, have teamed up to build two new
nuclear plants adjacent to Plant Vogtle, which they already
own. It is a nuclear power-producing facility. Since nuclear
power is a non-carbon emitting source of power, it would seem
to me that this project would be a perfect candidate for RUS
base load financing and since you will directly oversee the
rural electric programs, can I get a commitment from you to
ensure that you will work to reestablish base load financing
for nuclear power at RUS?
Mr. Adelstein. Senator Chambliss, there are, as you know,
impediments to financing base load generation currently with
OMB and also there was an attempt in the Farm Bill to open up
the possibility of having fees assessed that could help to
finance those. But I will commit to you that I would be willing
to raise this issue with the Administration to see what can be
done.
Senator Chambliss. I do think that long term this issue of
carbon emissions is going to be with us and there is just no
question but that nuclear power is one of the solutions to that
problem. So I hope you will give it due emphasis and we will
look forward to working with you on that.
One other quick issue. When the stimulus funding for the
B&I Loan Guarantee Program was authorized, it has kind of been
sitting there. Do you have any idea in your discussions leading
up to this confirmation hearing as to when there is going to be
an announcement on the disbursement of those funds?
Mr. Adelstein. This is the water funds?
Senator Chambliss. They would be included in there? Yeah,
the Business & Industry Loan Guarantee Program, that I do not
think would include the water funds.
Mr. Adelstein. Right, the Business & Industry Loan, I am
not familiar with that. Under Secretary Tonsager, who was
recently confirmed, has been working on that. RUS does not have
authority over that program, so I am not familiar with the
disposition of the stimulus funds. I would be happy to look
into that and get back to you forthwith on what the status and
timing is on disbursing those funds.
Senator Chambliss. Again, in this current state of
financial uncertainties, that particular program is critical to
folks not just in Georgia, but in all parts of rural America,
so any emphasis you can give to that I would appreciate it.
Mr. Concannon, your mission area is leading development of
the 2010 dietary guidelines in conjunction with U.S. Department
of Health and Human Services. The dietary guidelines are
updated every 5 years at considerable expense and time of
Federal employees. The purpose behind the frequent update is to
ensure that Federal nutrition policy is based on the most
accurate science instead of diet fads or other factors.
The dietary guidelines are a key component to all Federal
nutrition assistance and education programs and they focus on
an overall diet and nutritional intake instead of
characterizing foods as either good or bad. I mention this
because there are various efforts to steer the Federal
Government to implement nutrition guidance from outside
sources, whether they are attempts to limit what foods can be
purchased with SNAP benefits or foods sold in schools.
While there is strong bipartisan support to improve the
diet and exercise habits of all Americans, and especially those
that participate in USDA assistance programs, I believe that an
incentive-based approach is more effective than a punitive
approach of penalties and strict Federal mandates and I would
appreciate your thoughts on this subject and your assurance
that you will honor the dietary guidelines for Americans as the
official Federal nutritional policy.
Mr. Concannon. Senator, I am new to some of the aspects of
the questions obviously that you have raised, but I am of the
understanding that in the farm bill that was passed several
years ago, there were incentives, pilot program incentives to
encourage people to in the, I believe it was in the WIC
program, to make better use of more nutritious foods, fruits
and vegetables, and it is my understanding that later this
year, between some elements within the USDA and some of these
pilot programs, will be reviewed for the effectiveness of some
of those incentives.
The point you raised, Senator, broadly in your statement,
that there are broad concerns about nutrition in the country,
as it has been previously noted--and I think we need to both
honor those dietary guidelines, but also work with other parts
of the public and private sector to encourage both moderation
and better nutritional habits for Americans.
Senator Chambliss. We do spend a lot of time and a lot of
money on the preparation of those dietary guidelines and
studies show that few people actually follow them. In fact, I
think only about 3 percent of adults, according to the most
recent study, really pay much attention to those
recommendations.
So I hope that you will give strong consideration to
educational programs about communicating to all Americans what
is contained in those dietary guidelines and make sure that we
are able to get the best bang for that buck that we are
spending with respect to the publication of those guidelines.
Mr. Concannon. Yes, sir.
Senator Chambliss. Mr. Segal, I think the chairman has
covered the basic points that I wanted to cover with you, with
one small exception and that is, let me just say first, this
issue of updating the Enterprise Financial Systems at USDA has
been an ongoing project.
One of our complications has frankly been the lack of
funding to adequately do the job. It is not going to be cheap.
I hope that what you may do initially is to look at developing
a plan. Trying to do all of this at one time may be impossible,
may be impractical. I am not sure we could put a brand new
computer in every FSA employee's hands within a 12-month
period, so it may take us a couple of years.
But if you can develop a reasonable plan, let me just
assure you that there will be bipartisan support on the Hill to
see about the implementation of that plan. One aspect of that
plan needs to be consideration of how we keep information
relative to producers private. That is always a difficult issue
to deal with, whether you are in the private sector or whether
you are dealing with government programs.
So as you look at developing a system that will provide
better service to our producers around the country, I hope you
will think again of some innovative and creative ways and use
your background to help us come up with a program that ensures
the privacy on the part of those producers and that will in and
of itself allow us to provide greater assistance and make sure
that the people who are entitled to payments under the programs
are the ones that are actually getting those payments as
opposed to frankly some of the abuses that have taken place in
the system.
So again, to all three of you, I would just say
congratulations, No. 1, on your nomination. You are all
eminently qualified to carry out the challenges that have been
presented to you and we look forward to a swift confirmation
and look forward to working individually with each one of you
in your respective areas.
Thank you, Mr. Chairman.
Chairman Harkin. I would like again ask for any--for the
senators who could not be here this morning due to other
commitments who would like to ask for any written questions to
the nominees, to be submitted to the clerk of this committee by
6 p.m. this afternoon, by 6 p.m. today. So the staffs who are
here, if there are any written questions, have them in by 6
today.
We would like to get the nominees hopefully up sometime
this week if we can and on the floor of the Senate. So I
would--again, do any of you have anything else you would like
to bring up to the Committee at all for the record or anything
like that? Going once, going twice.
Again, congratulations to each one of you. We will try to
expedite this process. Look forward to working with you. Thank
you all very much.
The Committee will stand adjourned.
[Whereupon, at 11:19 a.m., the Committee was adjourned.]
=======================================================================
A P P E N D I X
July 7, 2009
=======================================================================
[GRAPHIC] [TIFF OMITTED] 54571.001
[GRAPHIC] [TIFF OMITTED] 54571.002
[GRAPHIC] [TIFF OMITTED] 54571.003
[GRAPHIC] [TIFF OMITTED] 54571.004
[GRAPHIC] [TIFF OMITTED] 54571.005
[GRAPHIC] [TIFF OMITTED] 54571.006
[GRAPHIC] [TIFF OMITTED] 54571.007
[GRAPHIC] [TIFF OMITTED] 54571.008
[GRAPHIC] [TIFF OMITTED] 54571.009
[GRAPHIC] [TIFF OMITTED] 54571.010
[GRAPHIC] [TIFF OMITTED] 54571.011
=======================================================================
DOCUMENTS SUBMITTED FOR THE RECORD
July 7, 2009
=======================================================================
[GRAPHIC] [TIFF OMITTED] 54571.012
[GRAPHIC] [TIFF OMITTED] 54571.013
[GRAPHIC] [TIFF OMITTED] 54571.014
[GRAPHIC] [TIFF OMITTED] 54571.015
[GRAPHIC] [TIFF OMITTED] 54571.016
[GRAPHIC] [TIFF OMITTED] 54571.017
[GRAPHIC] [TIFF OMITTED] 54571.018
[GRAPHIC] [TIFF OMITTED] 54571.019
[GRAPHIC] [TIFF OMITTED] 54571.020
[GRAPHIC] [TIFF OMITTED] 54571.021
[GRAPHIC] [TIFF OMITTED] 54571.022
[GRAPHIC] [TIFF OMITTED] 54571.023
[GRAPHIC] [TIFF OMITTED] 54571.024
[GRAPHIC] [TIFF OMITTED] 54571.025
[GRAPHIC] [TIFF OMITTED] 54571.026
[GRAPHIC] [TIFF OMITTED] 54571.027
[GRAPHIC] [TIFF OMITTED] 54571.028
[GRAPHIC] [TIFF OMITTED] 54571.029
[GRAPHIC] [TIFF OMITTED] 54571.030
[GRAPHIC] [TIFF OMITTED] 54571.031
[GRAPHIC] [TIFF OMITTED] 54571.032
[GRAPHIC] [TIFF OMITTED] 54571.033
[GRAPHIC] [TIFF OMITTED] 54571.034
[GRAPHIC] [TIFF OMITTED] 54571.035
[GRAPHIC] [TIFF OMITTED] 54571.036
[GRAPHIC] [TIFF OMITTED] 54571.037
[GRAPHIC] [TIFF OMITTED] 54571.038
[GRAPHIC] [TIFF OMITTED] 54571.039
[GRAPHIC] [TIFF OMITTED] 54571.040
[GRAPHIC] [TIFF OMITTED] 54571.041
[GRAPHIC] [TIFF OMITTED] 54571.042
[GRAPHIC] [TIFF OMITTED] 54571.043
[GRAPHIC] [TIFF OMITTED] 54571.044
[GRAPHIC] [TIFF OMITTED] 54571.045
[GRAPHIC] [TIFF OMITTED] 54571.046
[GRAPHIC] [TIFF OMITTED] 54571.047
[GRAPHIC] [TIFF OMITTED] 54571.048
[GRAPHIC] [TIFF OMITTED] 54571.049
[GRAPHIC] [TIFF OMITTED] 54571.050
[GRAPHIC] [TIFF OMITTED] 54571.051
[GRAPHIC] [TIFF OMITTED] 54571.052
[GRAPHIC] [TIFF OMITTED] 54571.053
[GRAPHIC] [TIFF OMITTED] 54571.054
[GRAPHIC] [TIFF OMITTED] 54571.055
[GRAPHIC] [TIFF OMITTED] 54571.056
[GRAPHIC] [TIFF OMITTED] 54571.057
[GRAPHIC] [TIFF OMITTED] 54571.058
[GRAPHIC] [TIFF OMITTED] 54571.059
[GRAPHIC] [TIFF OMITTED] 54571.060
[GRAPHIC] [TIFF OMITTED] 54571.061
[GRAPHIC] [TIFF OMITTED] 54571.062
[GRAPHIC] [TIFF OMITTED] 54571.063
[GRAPHIC] [TIFF OMITTED] 54571.064
[GRAPHIC] [TIFF OMITTED] 54571.065
[GRAPHIC] [TIFF OMITTED] 54571.066
[GRAPHIC] [TIFF OMITTED] 54571.067
[GRAPHIC] [TIFF OMITTED] 54571.068
[GRAPHIC] [TIFF OMITTED] 54571.069
[GRAPHIC] [TIFF OMITTED] 54571.070
[GRAPHIC] [TIFF OMITTED] 54571.071
[GRAPHIC] [TIFF OMITTED] 54571.072
[GRAPHIC] [TIFF OMITTED] 54571.073
[GRAPHIC] [TIFF OMITTED] 54571.074
[GRAPHIC] [TIFF OMITTED] 54571.075
[GRAPHIC] [TIFF OMITTED] 54571.076
[GRAPHIC] [TIFF OMITTED] 54571.077
[GRAPHIC] [TIFF OMITTED] 54571.078
[GRAPHIC] [TIFF OMITTED] 54571.079
[GRAPHIC] [TIFF OMITTED] 54571.080
[GRAPHIC] [TIFF OMITTED] 54571.081
[GRAPHIC] [TIFF OMITTED] 54571.082
[GRAPHIC] [TIFF OMITTED] 54571.083
[GRAPHIC] [TIFF OMITTED] 54571.084
[GRAPHIC] [TIFF OMITTED] 54571.085
[GRAPHIC] [TIFF OMITTED] 54571.086
[GRAPHIC] [TIFF OMITTED] 54571.087
[GRAPHIC] [TIFF OMITTED] 54571.088
[GRAPHIC] [TIFF OMITTED] 54571.089
[GRAPHIC] [TIFF OMITTED] 54571.090
[GRAPHIC] [TIFF OMITTED] 54571.091
[GRAPHIC] [TIFF OMITTED] 54571.092
[GRAPHIC] [TIFF OMITTED] 54571.093
[GRAPHIC] [TIFF OMITTED] 54571.094
[GRAPHIC] [TIFF OMITTED] 54571.095
[GRAPHIC] [TIFF OMITTED] 54571.096
[GRAPHIC] [TIFF OMITTED] 54571.097
[GRAPHIC] [TIFF OMITTED] 54571.098
[GRAPHIC] [TIFF OMITTED] 54571.099
[GRAPHIC] [TIFF OMITTED] 54571.100