    [Senate Hearing 114-178]
    [From the U.S. Government Publishing Office]

      COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS FOR
                                FISCAL YEAR 2016

                                  ----------

                          THURSDAY, FEBRUARY 26, 2015

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10:33 a.m., in room SD-192, Dirksen
    Senate Office Building, Hon. Richard Shelby (chairman)
    presiding.
        Present: Senators Shelby, Collins, Kirk, Capito, Lankford,
    Mikulski, Shaheen, Coons, Baldwin, and Murphy.

                          U.S. DEPARTMENT OF COMMERCE

                            Office of the Secretary

    STATEMENT OF HON. PENNY PRITZKER, SECRETARY

                 opening statement of senator richard c. shelby

        Senator Shelby. The subcommittee will come to order. Today,
    I want to welcome Secretary Pritzker, who will testify about
    the Department of Commerce's 2016 budget request. This
    subcommittee has had a productive relationship with the
    Commerce Department under Secretary Pritzker's tenure, and we
    appreciate very much her being here today.
        The Department of Commerce is responsible for a variety of
    activities critical to our Nation's well-being, including:
    weather forecasting, economic development, fisheries
    management, cybersecurity standards, and trade enforcement,
    among others. Few departments have such potential to directly
    impact the strength and sustainability of our communities and
    local businesses back home.
        The Commerce Department's request for fiscal year 2016
    totals $9.8 billion, which is $1.3 billion, or 16 percent,
    above the 2015 enacted amount of $8.5 billion. This request
    represents a significant increase in spending at a time when
    America is still living within a constrained budget. The
    Department's request proposes increasing funding for several
    important programs that are already expensive, including the
    build up to the 2020 Decennial Census and efforts to launch the
    next generation of weather satellites. These large increases
    are coupled with substantial funding proposals for new
    initiatives, which will continue to add financial pressure on
    existing core programs and operations.
        Such a disjointed request, I believe, ignores current
    fiscal realities and raises immediate questions about the
    administration's priorities for establishing a balanced budget
    within the Commerce Department. Strict oversight and fiscal
    responsibility are essential for the Department's success in
    2016.
        One of the growing pressures on the Department's budget is
    the anticipated budgetary and personnel build up to execute the
    2020 Census. And while the Department is working to the make
    the 2020 Census as efficient and cost-effective as possible,
    any delay in testing and activities now will have very costly
    ramifications in the future. The Department, I believe, simply
    cannot afford to have another $1 billion setback similar to
    that experienced in 2010.
        Madam Secretary, I believe if you're not watchful of plans
    and schedules with the Census today, important programs
    throughout the Department could suffer in order to keep the
    Census on track.
        When it comes to accountability, ensuring the timely
    delivery, launch, and operation of weather satellites remains a
    primary concern for this subcommittee. According to NOAA's own
    budget request, polar orbiting satellites provide the primary
    input, up to 85 percent, of the data needed for NOAA's
    numerical weather prediction models, the underpinnings of high
    impact weather forecasts. Eighty-five percent, I think, is a
    big deal.
        Despite the continued support and full funding provided by
    the subcommittee to NOAA for these satellites, recent reports
    by GAO and the Department of Commerce Inspector General suggest
    that a gap in polar satellite data is likely to occur. GAO
    continues to predict a gap that could last anywhere from 17 to
    53 months, while NOAA and NASA say there is only a potential of
    a 3 month gap. I'm disappointed in the lack of a specific plan
    to address the potential near-term data gap that could occur
    this calendar year.
        Madam Secretary, this mixed message on the potential gap
    deeply troubles me. It's clear that the loss of this data would
    negatively impact the capability of our Nation's weather
    forecasters, potentially putting lives and property in harm's
    way. This gap debate and incongruent information does little to
    dissuade my concerns or that of the American people.
        In addition, I'm concerned about the Department's 2016
    request of $380 million for a proposal to build a follow-on
    polar satellite program after the Joint Polar Satellite System.
    The 2016 request is only an initial down payment for this new
    satellite program and lacks specific details on the overall
    price tag, which could cost several billion dollars. The
    subcommittee will need further information from the Department
    and NOAA on this new satellite system to determine what exactly
    the taxpayers are being asked to invest in beyond 2016.
        Finally, I want to touch on the Department's role in
    economic development. For fiscal year 2015, I expressed concern
    about the rollout of the Investing in Manufacturing Communities
    program. This program gives selected communities a seal of
    approval and priority access to Federal resources, resulting in
    the Department picking winners and losers. This is a concern
    that a lot of us have.
        I'm similarly troubled by a new initiative proposed in the
    2016 request that would establish two new institutes for
    manufacturing and innovation. The question is, do we need them?
    Last year's omnibus spending bill included authorization to
    build out a network of these manufacturing institutes. And
    while I support efforts to drive innovation and spur private
    sector growth, I'm concerned that institutes may benefit only
    certain communities while disadvantaging others. I believe this
    manufacturing initiative will create a fiscal commitment that
    we might be unable to meet.
        The administration proposes $1.9 billion in mandatory
    spending in 2017 to fund these manufacturing institutes, but
    these funds have yet to be authorized. With no mandatory
    funding available or identified, the administration proposes
    spending $150 million of discretionary funding in fiscal 2016.
    This is discretionary funding that the Department simply can't
    afford. I'm concerned that funding new initiatives like this
    will come at a cost to Commerce's core functions. To be
    financially successful, I believe the Commerce Department's
    role in this initiative should be limited in scope, focused on
    its core mission of economic development, and assisting the
    most economically distressed communities, while being mindful
    of taxpayers' dollars.
        I look forward, Madam Secretary, to hearing your views on
    these matters and working with our subcommittee to address the
    concerns in the 2016 bill.
        Now, I want to recognize Senator Mikulski, the former
    Chairwoman of the subcommittee and my friend and colleague, for
    any remarks that she might want to make.

                    statement of senator barbara a. mikulski

        Senator Mikulski. Thank you very much, Chairman Shelby, and
    I want to congratulate you on your chairmanship and once again,
    reaffirm our bipartisan working relationship on what's going to
    be good for our country. And we know today that there are some
    new members on our subcommittee from both Wisconsin and
    Oklahoma, and it's wonderful to welcome you to the
    subcommittee.
        Secretary Pritzker, of course, is the Secretary of
    Commerce, which is a hybrid agency that does deal with
    everything from fish, which is so crucial to our mutual
    economies--especially Senator Collins and myself and I know
    Alabama--to technology, to the prediction of weather, which we
    can see we're highly dependent upon.
        But her mantra and her mission has been the phrase that
    America is open for business. And we look forward to hearing
    from her how she feels the budget request from the President
    will enable the Department of Commerce not only make wise use
    of taxpayers' dollars, but how this will promote our economy
    and promote job growth, both today and tomorrow. So we look
    forward to hearing how this ``Open for Business'' has actually
    worked in the real world and how it will do this. We're not
    here to fund Government programs. We're here to fund American
    outcomes. And those American outcomes are to create American
    jobs, promoting economic growth, particularly in manufacturing,
    which so many of our communities have been hard hit, an
    increase in exports, and also to make sure that as we do R&D,
    that this is leading, really to markets.
        I am thrilled, particularly in my own home State, where we
    have so many Nobel Prize winners. But I want us to not only win
    the Nobel Prizes, but I want us to win the markets. So we're
    going to look forward to what does the money mean. And of
    course, protecting America's jobs, and not only new trade laws,
    but enforcing the existing ones, and safeguarding our
    intellectual property. We here in America are inventors. We are
    discoverers. But I believe that when you invent something, you
    should own it, and it should not be stolen from you, and we
    need that.
        The other is to be able to protect our people, and whether
    that's accurate weather forecast--because again, Senator
    Collins and I have talked about how we've had firefighters
    rescuing people and nurses with snowmobiles. We have people out
    there now on our waterways in cold and frozen waters, either
    worrying about where our fishermen are or promoting commerce.
    We need accurate weather, whether you're Oklahoma or Wisconsin
    worrying about a tornado or--we need this. So it is the weather
    forecasting.
        We're particularly interested in the Commerce Department's
    role in cyber. When we think of the word cyber, we immediately
    think of the defense of our Nation. We think of the Department
    of Defense, the Cyber Command, the National Security Agency. We
    certainly are thinking about the responsibilities of the
    Homeland Security that could be facing a shutdown. But what is
    the role of cyber at a Commerce Department? And quite frankly,
    you've been hacked yourself, so we want to know that.
        The other is that we appreciate your work in reform. Going
    back to really Secretary Gutierrez, he and I worked as
    reformers together on things like, especially, the Census,
    which was of great concern. We worked together on the techno
    boondoggle of the NOAA satellites. We need to hear how you've
    made progress and how we cannot have boondoggles again. And I
    know you've carried on the spirit of reform that was created
    under Secretary Gutierrez, Becky (Acting Secretary Rebecca
    Blank) continued it, and you have, because with an
    approximately $9 billion budget request, we've got to make sure
    we use the money that we have well, and leverage that to make
    sure that America is not only open for business, but stays in
    business.
        So I look forward to your testimony and working with you to
    achieve those goals.
        Senator Shelby. Secretary Pritzker, your written testimony
    will be made part of the record. You can proceed as you wish.
    Welcome, again, to the subcommittee.

                    summary statement of hon. penny pritzker

        Secretary Pritzker. Thank you very much, Chairman Shelby,
    Vice Chairman Mikulski, and members of the subcommittee. Thank
    you for the opportunity to lay out President Obama's fiscal
    year 2016 Budget for the Department of Commerce.
        This budget advances the core tenets of the Department's
    mission, to develop and implement policies that support
    economic growth, to help America's businesses expand and
    thrive, both at home and around the world, and to ensure that
    the country remains competitive, stays at the forefront of
    innovation, and continues to lead the global economy in the
    21st century. To support this mission, the fiscal year 2016
    budget provides $9.8 billion of discretionary funding to
    reinforce the priorities of the Department's strategy, our Open
    for Business agenda, by promoting U.S. exports, trade, and
    investment, by spurring high tech manufacturing and innovation,
    by unleashing more data for economic benefit, by gathering and
    acting on environmental intelligence, and by making our
    agency's operations more efficient and more effective.
        Today, I want to highlight some key initiatives supported
    by this budget. First, the Commerce Department collects,
    analyzes, disseminates data that informs everyday business
    decisions. In particular, the Census Bureau creates data
    products used by businesses, policy makers, and the public. The
    fiscal year 2016 budget reflects the fact that this is a
    critical year for preparation of the 2020 Census as we test the
    use of administrative records, reengineered field operations,
    and Internet data collection, as we create new systems to
    improve coverage and quality of the Census, and as we develop
    plans for the fiscal years 2017 and 2018 integrated tests of
    the entire process, all of this combined at a potential savings
    of $5 billion to taxpayers. But to achieve these savings, we
    must invest today.
        Another part of our agenda is to help communities and
    businesses prepare for and prosper in a changing environment.
    The National Oceanic and Atmospheric Administration's budget
    will enhance our ability to meet this goal through two
    investments. First, the budget proposes $2.4 billion to fully
    fund the next generation of weather and environmental
    satellites, which provide our communities with forecasts that
    protect lives, property, and the economy. Funding the
    development and launch of future satellites is absolutely
    critical to reduce the risk of a potential gap in weather data
    in 2017 and beyond.
        Second, the budget requests $147 million to develop a high
    endurance, long range ocean survey vessel. Our fleet is in
    desperate need of renewal. Making this investment now will
    enable NOAA to take advantage of design work previously done by
    the Navy and of openings in the shipyard's schedule, both of
    which will save taxpayers millions of dollars in acquisition
    and design costs. Time is not our ally. We need to replace
    eight ships in the next 12 years, and this ocean survey vessel
    is just the first.
        For generations, manufacturing has been a key to
    innovation, a source of middle class jobs, and a pillar of our
    global leadership. Over the last 5 years, America's
    manufacturers have made a comeback, adapting, innovating, and
    adding more than 870,000 jobs, growing for the first time in
    decades. Recognizing the importance of manufacturing to our
    competitiveness, you passed the Revitalize American
    Manufacturing and Innovation Act, which calls for the expansion
    of the national network of manufacturing innovation, or NNMI.
    This initiative brings together industry, university
    researchers, community colleges, NGOs, and government to
    accelerate the development of cutting-edge manufacturing
    technologies. From the start, the competition among communities
    to host and to provide matching funds for these advanced
    manufacturing sites has been fierce. Our fiscal year 2016
    budget requests funding to oversee and coordinate current and
    future institutes and to support two institutes led by the
    Commerce Department, which would focus on lab to market
    opportunities that the private sector industry determines have
    the most potential.
        This budget will also provide the International Trade
    Administration with the resources needed to advance President
    Obama's robust trade agenda. These investments will enable our
    export assistant centers and foreign commercial service to help
    small, medium, and large size businesses expand their exports
    to new markets and to ensure that American made products make
    their way to the 95 percent of customers who live outside of
    the United States.
        Finally, our budget will allow us to continue the
    renovation of our building's headquarters here in Washington,
    D.C. This multi-year project is designed to upgrade our 80-year
    old facility's heating, cooling, plumbing, and electrical
    systems. The $24 million requested by our department will
    enable us to make better use of our space, and ultimately
    reduce the amount of funds required to house our employees.
        These priorities only scratch the surface of our
    department's work to support U.S. businesses, U.S. communities,
    and our economy. So I look forward to answering your questions
    today and to partnering with this subcommittee to keep America
    open for business. Thank you.
        [The statement follows:]
                   Prepared Statement of Hon. Penny Pritzker
        Chairman Shelby, Ranking Member Mikulski, and members of the
    subcommittee, thank you for this opportunity to discuss with you
    President Obama's fiscal year 2016 budget request for the U.S.
    Department of Commerce. The investments included in the fiscal year
    2016 budget request build upon the important investments you enacted in
    fiscal year 2015 and I am grateful for your support.
        The Department plays a critical role in promoting U.S. economic
    growth and providing vital scientific and environmental information. To
    support this mission across its diverse bureaus, the budget provides
    $9.8 billion in discretionary funding for Commerce. This funding level
    will enable key investments in areas such as promotion of exports and
    foreign investment; development of weather satellites; wireless and
    broadband access; and research and development to support long-term
    economic growth. At the same time, efficiency gains, such as
    streamlining operations in the Census Bureau and reductions in lower-
    priority activities enable Commerce to reduce costs and operate more
    efficiently.
        The fiscal year 2016 budget request reflects and advances the
    priorities of the Department's ``Open for Business'' Agenda. It
    maintains our role as the voice of business in the Obama administration
    by making critical investments in areas that will grow our economy and
    create good American jobs. This budget prioritizes promoting U.S. trade
    and investment, spurring high-tech manufacturing and innovation,
    unleashing more of our data, and gathering and acting on environmental
    intelligence, while also streamlining operations to help businesses
    grow. We are committed to working with Congress to achieve these goals
    so we can continue to build on our economic momentum and keep America
    more competitive in the global economy.
        The fiscal year 2016 Department of Commerce budget includes key
    investments in the following areas:
                    strengthening u.s. trade and investment
        Increasing trade and investment is critical to growing our economy.
    Exports have driven nearly one-third of economic growth since 2009 and
    support 11.3 million jobs. Ninety-six percent of companies that export
    are Small and Medium Enterprises (SMEs). Today, 95 percent of potential
    customers are outside our borders and growing the number of export-
    related jobs, which pay up to 18 percent more on average, will require
    expanding our ability to reach these foreign markets.
        The budget includes $497 million for the International Trade
    Administration (ITA) to strengthen the competitiveness of U.S.
    industry, promote job-creating trade and investment, and ensure fair
    trade through the rigorous enforcement of our trade laws and
    agreements. Funding for ITA includes $15 million to accelerate
    operations of the Interagency Trade Enforcement Center (ITEC), a multi-
    agency effort to address unfair trade practices and barriers that
    impede U.S. exports.
        The budget also provides $20 million within ITA to further
    strengthen SelectUSA, which is the government-wide effort to promote
    and facilitate business investment into the United States. From a vast
    domestic market, to a transparent legal system, to the most innovative
    companies in the world, America is the place for business. We are very
    grateful to this subcommittee for its past support for this important
    program. Building upon the successes of the inaugural SelectUSA Summit
    in 2013, the Department will host its second SelectUSA Investment
    Summit in March 2015. Other funds will support ITA's efforts to make it
    easier for U.S. companies of all sizes to reach consumers who live
    beyond our borders, including program and policy improvements to
    provide exporters more tailored assistance and to strengthen
    partnerships at the State and local level that support export promotion
    and foreign direct investment attraction strategies.
        The President's fiscal year 2016 budget requests $115 million for
    the Bureau of Industry and Security (BIS). Following the successful
    realignment of significant license application responsibilities from
    the Department of State to BIS, our focus on capacity-building now
    shifts from export administration to export enforcement. This level of
    funding will allow us to increase the number of enforcement agents
    within BIS to ensure enforcement of export controls and compliance-
    related activities to ensure that exporters and re-exporters are
    following our export control regulations.
        If we are to ensure that we can export U.S. goods more quickly,
    while also ensuring that sensitive technologies do not end up in the
    wrong hands, we must be able to educate exporters and re-exporters
    about our regulations and their responsibilities, and we must put
    sufficient teeth into our enforcement efforts. Strong enforcement
    levels the playing field for exporters, while lax enforcement threatens
    our national security and permits violators to flourish at the expense
    of the compliant.
        To continue supporting the national growth of minority-owned U.S.
    businesses, the budget includes $30 million for the Minority Business
    Development Agency. Minority owned firms make a significant and
    valuable contribution to our economy and export at a higher rate
    compared to all U.S. firms. This investment will promote further growth
    and global competitiveness of our Nation's minority-owned businesses.
                spurring innovation, growth and competitiveness
        Strengthening U.S. Manufacturing: As global competition continues
    to increase, the United States must find ways to foster the innovation
    that produces economic growth and creates well-paying middle-class
    jobs. A national effort to create institutes focused on manufacturing
    innovation will accelerate development and adoption of cutting-edge
    manufacturing technologies for new products that can compete in
    international markets. The National Network for Manufacturing
    Innovation (NNMI) provides a manufacturing research infrastructure
    where U.S. industry and academia collaborate to solve industry-relevant
    problems. To date, five institutes, funded by the Department of Defense
    and the Department of Energy, have been launched, involving more than
    300 companies and universities and attracting $480 million in private
    funding in the institutes. NNMI will keep America on the front-lines of
    discovery, which will result in our businesses, our manufacturers, and
    the American economy becoming more competitive in the 21st century
    global economy.
        The budget supports the President's vision of creating a full
    national network, expanding NNMI with up to 45 manufacturing innovation
    institutes across the Nation during the next 10 years. In total, the
    budget includes discretionary funding for seven new institutes in
    fiscal year 2016, including $140 million for the first two Commerce-led
    institutes. The budget also includes an additional $1.9 billion
    mandatory proposal to fulfill the President's vision. The budget
    includes an additional $10 million for the National Institute of
    Standards and Technology (NIST) to coordinate the activities of the
    current and future institutes, leveraging the authorities in the
    bipartisan Revitalize American Manufacturing and Innovation Act (RAMI),
    enacted as part of the Consolidated and Further Continuing
    Appropriations Act, 2015, thanks to your support.
        The budget also provides $141 million for NIST's Hollings
    Manufacturing Extension Partnership (MEP), which will continue to focus
    on expanding technology and supply chain capabilities to support
    technology adoption by smaller manufacturers to improve their
    competitiveness.
        Supporting 21st Century Economic Development: Economic Development
    creates the conditions for economic growth and improved quality of life
    by expanding the capacity of individuals, firms, and communities to
    maximize the use of their talents and skills to support innovation,
    lower transaction costs, and responsibly produce and trade valuable
    goods and services. The budget invests $273 million for the Economic
    Development Administration (EDA) to support innovative economic
    development planning, regional capacity building, and capital projects.
    Within this amount, $25 million is included for the Regional Innovation
    Strategies Program to promote economic development projects that spur
    entrepreneurship and innovation at the regional level. The EDA budget
    also includes $39 million for Partnership Planning to support local
    organizations with their long-term economic development planning
    efforts and outreach. Additionally, $53 million is provided for
    Economic Adjustment Assistance for critical investments such as
    economic diversification planning, and implementation, technical
    assistance, and access to business start-up facilities and equipment.
        Supporting the Digital Economy: The fiscal year 2016 budget request
    demonstrates the administration's continued commitment to broadband
    telecommunications as a driver of economic development, job creation,
    technological innovation, and enhanced public safety. The investment of
    $49.2 million will allow the National Telecommunications and
    Information Administration to develop, implement, and advocate policies
    to help meet challenges related to the digital economy, Internet
    openness, privacy, and security. The President's broadband vision of
    freeing up 500 MHz of Federal spectrum, promoting broadband competition
    in communities throughout the country, and connecting over 99 percent
    of schools to high-speed broadband connections through the ConnectED
    initiative will create thousands of quality jobs and ensure that
    students have access to the best educational tools available.
        The budget supports implementation of telecommunications provisions
    enacted in the Middle Class Tax Relief and Job Creation Act of 2012,
    which are expected to reduce the deficit by more than $40 billion over
    the next 10 years through spectrum auctions. These auctions will
    increase commercial access to wireless broadband spectrum while fully
    funding an interoperable public safety and first responder broadband
    network.
        Beyond our efforts to promote innovation, the budget highlights the
    administration's commitment to cybersecurity by supporting NIST's
    efforts to work with industry on implementing the Cybersecurity
    Framework of standards and best practices, as well as sustaining
    initiatives associated with cybersecurity automation, cybersecurity
    information, and the National Strategy for Trusted Identities in
    Cyberspace (NSTIC).
        Spurring Innovation for American Businesses: Through implementation
    of the America Invents Act, the U.S. Patent and Trademark Office
    (USPTO) continues to make it easier for American entrepreneurs and
    businesses to bring their inventions to the marketplace sooner,
    converting ideas into new products and new jobs. The budget supports a
    program level of $3.5 billion for USPTO, a level that would allow USPTO
    to fund operations and to further implement administrative actions
    proposed by the President's Patent Task Force.
        Fueling a Data-Driven Economy: Data is the fuel that powers the
    21st century economy, and Commerce Department data touches every
    American and informs business decisions every day. The budget will
    support data-related efforts ranging from our preparations for the 2020
    census to unleashing more NOAA data through public-private
    partnerships.
        Improving Federal Statistical Measures: The budget provides $1.5
    billion to provide critical support for the U.S. Census Bureau to
    research, test, and implement innovative design decisions made at the
    end of 2015. Funding in fiscal year 2016 supports the rapid system and
    operational development necessary to achieve the goal of conducting a
    census at a lower cost per household than in the 2010 census,
    potentially saving up to $5 billion compared to the costs of repeating
    the 2010 census design in 2020. The budget also includes a planned
    cyclical increase for the Economic Census. The budget includes $10
    million in additional funding for the Census Bureau to lay the ground
    for acquiring and processing administrative data sets in an
    administrative records clearinghouse that will benefit program
    evaluation and statistical work across the Government as well as
    amongst private researchers. The Bureau will accomplish this by
    building on its existing strengths to develop a more comprehensive
    infrastructure for linking, sharing, and analyzing key datasets.
        Gathering and Acting on Environmental Intelligence: The
    Department's environment agenda aims to help communities and businesses
    prepare for and prosper in a changing environment through the models,
    assessments, forecasts, and tools generated based on data from our
    network of satellites, ships, and world-wide sensors.
        The budget provides $6.0 billion to advance the National Oceanic
    and Atmospheric Administration's (NOAA) ability to understand and
    anticipate changes in the Earth's environment, improve society's
    ability to make scientifically informed decisions, deliver vital
    services to the economy and public safety, and conserve and manage
    ocean and coastal ecosystems and resources. The budget invests in
    NOAA's observational infrastructure, including $2.4 billion to fully
    fund NOAA's weather and space weather satellite programs. This includes
    $380 million for the Polar Follow-On satellite program, allowing for a
    launch schedule that is necessary to improve the robustness of the
    satellite systems that provide critical weather data.
        The Department continues its commitment to support a Weather-Ready
    Nation, and evolve the National Weather Service to become a more agile
    decision support organization capable of providing more accurate and
    more timely weather forecasts. The United States has the greatest
    number and greatest variety of severe weather events of any country on
    the planet. The Budget invests $1.1 billion for the National Weather
    Service, including funding increases for critical infrastructure.
        The President's budget makes investments to fill information needs
    in observations, surveys, and fisheries management, including $147
    million for a new ocean survey vessel. The budget also provides $50
    million for an expanded Regional Coastal Resilience Grant Program,
    which will help reduce the risks and impacts associated with extreme
    weather events and changing ocean conditions and uses, along with $30
    million for ocean acidification research to improve understanding of
    its impacts and support tool development and adaptive strategies for
    affected industries and stakeholders. Additionally, the budget requests
    an increase of $19 million for expanded Endangered Species and Magnuson
    Stevens Act consultation capacity that will reduce permitting
    timeframes.
        Streamlining Operations: To further the President's goals of
    improving customer service and enhancing the efficiency of Government,
    the budget includes $6 million to support a Commerce Digital Services
    team to adopt private sector best practices and recruit talent to
    improve Commerce's information technology systems. This team will be
    responsible for driving the efficiency and effectiveness of the
    Agency's highest impact, client focused information technology systems.
    In addition, the budget includes $3 million to support the development
    of an ``Idea Lab,'' which will house a team dedicated to incubating and
    investing in innovative approaches to more efficiently and effectively
    meet Agency strategic goals and objectives through greater employee
    engagement.
                                   conclusion
        With the fiscal year 2016 budget, the Department seeks to advance
    the core tenets of its mission: to create the conditions for economic
    growth; help U.S. businesses expand; and to ensure that America stays
    competitive, stays ahead, and continues to lead the global economy in
    the 21st century. The smart investments proposed in President's fiscal
    year 2016 budget will support a globally competitive economy by
    promoting trade and investment, spurring innovation, fueling a data-
    driven economy, and gathering and acting on environmental intelligence.
    With this budget, I am confident that we will keep America ``Open for
    Business.'' I look forward to working with the subcommittee to achieve
    these important goals.

                       POLAR FOLLOW-ON SATELLITE PROGRAM

        Senator Shelby. Thank you, Madam Secretary. I'll try to get
    to the point on these. The Polar Follow-on mission, how long
    will this new Polar Follow-on satellite program last beyond
    2016?
        Secretary Pritzker. Well, the Polar Follow-on program is
    one that has, I think, actually quite a long life, and I can
    get you specifically, Senator--
        Senator Shelby. Will you furnish that for the record?
        Secretary Pritzker. What?
        Senator Shelby. Would you furnish that for the record?
        Secretary Pritzker. Yes, I will, sir.
        [The information follows:]

        Question. Polar Follow-on.--The Polar Follow-on mission, how long
    will this new Polar Follow-on satellite program last beyond 2016? Will
    you furnish that for the record?
        Answer. The Polar Follow-on (PFO) implements a long term strategy
    to build a robust \1\ architecture that will extend operations of the
    overall polar satellite system to as far as fiscal year 2038. PFO is
    essential to maintaining continuity of polar observations, ensuring
    NOAA continues to provide accurate and timely weather forecasts and
    warnings beyond JPSS-2.
        NOAA is focused on achieving polar-orbiting weather constellation
    robustness. The fiscal year 2016 President's budget request includes
    $380 million for PFO activities designed to achieve robustness as early
    as fiscal year 2023 and ensure continuity of NOAA's polar weather
    observations. There are three activities funded within PFO:
      --initiate development of PFO/JPSS-3 to meet a launch readiness date
            (LRD) in the second quarter of fiscal year 2024, and PFO/JPSS-4
            development to meet a LRD in the third quarter of fiscal year
            2026.
      --provide the option to accelerate PFO/JPSS-3 as a contingency
            mission with critical sounders Advanced Technology Microwave
            Sounder (ATMS) and Cross-track Infrared Sounder (CrIS) only.
      --invest in development of an advanced technology Earth Observing
            Nanosatellite-Microwave (EON-MW).
        NOAA will manage the PFO as an integrated single program with JPSS
    to incorporate efficiencies planned and implemented under JPSS.
    Authorizing PFO in fiscal year 2016 will allow NOAA to take advantage
    of the ongoing JPSS-2 instrument and spacecraft bus development to
    reduce schedule, risk and life cycle costs for the follow-on missions
    and implement a simultaneous instrument block buy for PFO/JPSS-3 and
    PFO/JPSS-4 instruments for the most efficient acquisition strategy and
    production cadence.
    ---------------------------------------------------------------------------
        \1\ The definition of a ``robust'' architecture has two
    characteristics: (1) two failures must occur to create a gap in data
    from Advanced Technology Microwave Sounder (ATMS) or Cross-track
    Infrared Sounder (CrIS) instruments and (2) the ability exists to
    restore a two-failure condition within 1 year of an on-orbit failure.

        Secretary Pritzker. The Polar Follow-on is a very important
    program for us, and thank you for the support that we've
    received in the past for this program.
        One of the things that is important to know is that our
    satellite program, years ago, was not so well run. Today, we
    run a program that is on time and on budget. GOES-R Series
    program and our JPSS program are on schedule and on budget. But
    this potential for a gap that you talked about in your opening
    statement is one that we're very concerned about. The
    opportunity to do the Polar Follow-on is to allow us to use
    instruments that would be used for our JPSS-3 and -4
    satellites. We would order them today, and if, God forbid,
    there's any kind of disruption in the satellite program that we
    have coming along, we can use those instruments for the
    disruption, which will help address the gap, but if there's no
    problem, then we will use those instruments on JPSS-3 and -4.
        So this is a prudent way to manage our risk of a gap, but
    also, if there's no problem, then to use those instruments on
    our future satellites.
        Senator Shelby. What's the overall cost of the program, and
    do you have some projections on that? I would think it would
    be----
        Secretary Pritzker. I can get you those numbers. I know the
    request this hour is $380 million, but I don't know the--I'll
    get you the precise numbers.
        [The information follows:]

        Question. Polar Follow-on.--What's the overall cost of the program,
    and do you have some projections on that?
        Answer. NOAA has an initial life cycle cost (LCC) estimate for the
    PFO of $8.2 billion. NOAA will continue to refine the LCC estimate
    through 2016.

        Senator Shelby. But generally, these kind of programs cost
    billions of dollars.
        Secretary Pritzker. Yeah. I'm sorry, Senator?
        Senator Shelby. I said, these programs cost billions of
    dollars.
        Secretary Pritzker. Right. What we've been doing is trying
    to manage, right at this moment, how to deal with the gap, but
    also not waste money, so that if there is no problem, then the
    monies that we spend today, the $380 million, can be used in
    future satellites. But I'll get you the--we're working right
    now on the total cost of those programs.
        Senator Shelby. Some specifics. The JPSS currently has an
    overall cost cap of $11.3 billion. How is this follow-on
    program, how does it differ from the JPSS and not just an
    extension thereof?
        Secretary Pritzker. No. It's included in the JPSS program,
    I believe.
        Senator Shelby. Ma'am.
        Secretary Pritzker. I believe it's part of the JPSS
    program.
        Senator Shelby. So it's an extension of it in a sense.
    Would you call it that, if it's part of?
        Secretary Pritzker. I don't think it's an extension. I
    think it's actually within the program you're discussing.

                  NATIONAL NETWORK OF MANUFACTURING INNOVATION

        Senator Shelby. On the Network for Manufacturing
    Innovation, given our fiscal constraints, how would you balance
    the funding request for this new initiative with that of
    necessary funding for core programs, such as the Decennial
    Census? And how would the Department go about selecting the
    locations of these new institutes that you propose, and what
    assurances can you make to this subcommittee that the process
    would be transparent and fair?
        Secretary Pritzker. Well, Senator, first of all, running a
    transparent and fair process is something that we, at the
    Department, are committed to in all of our programs.
        In terms of ensuring that the monies would be spent wisely,
    first of all, the National Network of Manufacturing Innovation,
    I think, is one of the best crafted programs that we have for
    innovation development, because it requires a partnership
    between the private sector, universities, the supply chain,
    community colleges, local government, and the Federal
    Government. And I've gone to visit the institute in Chicago
    that's devoted to digital manufacturing, and what you learn is,
    is that for these programs to be able to be successful, it
    takes the best of all of these stakeholders in order to bring
    the best technologies.
        What differentiates the two institutes that we're proposing
    for the Department of Commerce to run is that the technologies
    that we would promote are technologies that would be determined
    by the private sector, as opposed to determined by the Federal
    Government. And the Department of Defense's and Department of
    Energy's Advance Manufacturing Institutes, those technologies
    have been driven by the needs of those departments.
        The other thing to remember is is that our proposed budget
    of $150 million is made up of really three components, two
    institutes that would be funded each at $20 million a year in
    year one, $20 million a year in year two, and then $10 million
    a year each for years three through five, and then $10 million
    to run the network. And one of the things that I think is
    extremely important is that we actually put together an effort
    to support this as a network.
        Your point about making sure that there are not communities
    left out of these technologies, one of the things that we've
    seen as these institutes have continued to be competed, is that
    more and more universities are reaching out to partners in
    different parts of the country, and also the companies that are
    participating are from all over the country. So the geography,
    they have to exist someplace, but the truth is the participants
    tend to have a multiplicity of locations.
        And I can give you examples. I could get our staff to give
    yours specific examples. For example, in Chicago, I think there
    are a number of universities throughout the Midwest all the way
    down to Texas that are participating, and this is true of the
    other institutes as well. It's become much more of a consortia
    process, where then researchers go to that location, but
    they're still affiliated with their local universities.
        Senator Shelby. That information would be helpful.
        Secretary Pritzker. Terrific. Happy to supply it.
        [The information follows:]

        Answer. NIST/DOD Response.--There are three existing DOD-led
    manufacturing institutes: America Makes headquartered in Youngstown,
    Ohio focused on additive manufacturing; Lightweight Innovations for
    Tomorrow (LIFT) headquartered in Detroit, Michigan focused on
    lightweight metals; and Digital Manufacturing and Design Innovation
    headquartered in Chicago, Illinois focused on the digital thread for
    manufacturing. Each institute serves to anchor the region on their
    respective technologies while growing to national prominence as
    reflected in their diverse and growing memberships as outlined in the
    two examples below:
        1. America Makes--currently has 6 Federal Government Agency
    members, 36 Universities and other Academia members, 62 Industry
    members, 14 Non-Profit Organizations, and 3 Manufacturing Extension
    Partnerships all spread across 28 States including: Alabama, Arizona,
    California, Colorado, Connecticut, Delaware, Florida, Illinois,
    Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan,
    Minnesota, Missouri, North Carolina, New Jersey, New Mexico, New York,
    Ohio, Pennsylvania, South Dakota, Tennessee, Texas, Virginia,
    Wisconsin, West Virginia.
        2. Digital Manufacturing and Design Innovation, headquartered in
    Chicago, Illinois, currently has the following members who have signed
    a membership agreement: 1 Government member, 20 Universities and other
    Academia, and 47 Industry members, spread across 25 States including:
    Alabama, Arizona, California, Colorado, Iowa, Illinois, Indiana,
    Kentucky, Massachusetts, Maryland, Michigan, Minnesota, Missouri,
    Mississippi, North Carolina, Nebraska, New York, Ohio, Oregon,
    Pennsylvania, Tennessee, Texas, Utah, Virginia and Wisconsin. There are
    an additional 9 Federal Agencies and Services involved including Army,
    Navy, Air Force, NIST, National Science Foundation, NASA, Defense
    Logistics Agency, DOE, and Office of the Secretary of Defense.
    Additionally, original team members are in the approval process for
    signing the current membership agreement: 3 Government members, 10
    Universities and Academia, and 31 Industry members, adding 5 States and
    the District of Columbia including: District of Columbia, Florida,
    Georgia, Maine, New Hampshire, and Washington.

        Secretary Pritzker. My last point on this, Senator is one
    of the things that is so important to remember about this
    effort is that, for us to remain competitive, we need to get
    our best technologies out of the laboratory and to market, and
    we need to do it expeditiously.
        To give you an example, today, we have five institutes,
    five or six, that have been called for. And Germany has 60 of
    these today. So this is an important part of our remaining on
    the cutting edge of innovation. And we know that a third of our
    economic growth since 2009 has been through innovation.
        Senator Shelby. Senator Mikulski.

                                NOAA SATELLITES

        Senator Mikulski. Thank you, Mr. Chairman. Secretary
    Pritzker, I'm going to pick up on NOAA satellites, an issue
    that we began--first of all, I've been NOAA satellite obsessed.
    Number one, because of the role they play in helping us predict
    the weather. Second, that our satellites are aging in place.
    But third, that our satellites were really--and the operation
    was bordering on a techno boondoggle.
        Starting with Secretary Gutierrez, then with Dr. Becky
    Blank under the Obama administration, and now with you, we
    really wanted to reform the satellite program. NOAA's
    satellites, why am I so hot on the satellites? It makes up 20
    percent of your budget and 60 percent of the NOAA budget. So if
    satellites don't work, we're impeded, because it's a negative
    on our ability to provide contemporary and global weather
    forecasting, and it knocks the hell out of our budget.
        So my question to you is three-fold. Number one, do you
    continue to reform and do the vigorous oversight that was at
    the highest level under the Department of Commerce? Number two,
    does this budget that you're asking fund the satellites that we
    have while we're looking at the cool new stuff. And number
    three, for the cool new stuff and the JPSS, the satellites -3
    and -4, what is it that you're doing now to prepare yourself,
    because I do worry about our satellites aging in place?
        Secretary Pritzker. Well, Senator, thank you.
        Senator Mikulski. So that's reform, how are we doing with
    what we've got now, and number three, are we really doing the
    right planning for the future?
        Secretary Pritzker. Well, Senator, first of all, thank you
    for asking. I mean, the satellite program is near and dear to
    my heart, as it is to yours, to make sure--because what's at
    stake here? What's at stake are lives and property as well as
    the ability for our businesses to get their goods and services
    to market, as well as for our employees to get to work. And so
    it's a very serious and very important endeavor that we have.
        So the reform and good management are of the highest
    priority for our team at NOAA and at the National Weather
    Service. And Dr. Uccellini, who you know well----
        Senator Mikulski. I just need you to keep moving it,
    because I've got only three more minutes to go.
        Secretary Pritzker. Got it. Sorry about that. Anyway, in
    terms of satellites, yes, we're totally committed to reform. In
    terms of the JPSS program, this is one that it's extremely
    important that we fund our polar satellites, and yes, that's
    included in our budget. And then as you call it the cool new
    stuff, or the Polar Follow-on, is extremely important, because
    what it will do is serve two purposes for us. One, in case
    there's any kind of launch disaster, we'll have instruments in
    the pipeline. And second, if there is no disaster, or in case,
    for example, the existing polar satellite Suomi National Polar-
    orbiting Partnership (NPP) that's up there that is past its
    useful life, if we have a gap, we have instruments in the
    pipeline. And otherwise, we will use those instruments on JPSS-
    3 and -4.

                        NATIONAL INSTITUTES OF STANDARDS

        Senator Mikulski. I appreciate that. And I think you see
    here a bipartisan support for the necessity of the satellites,
    but to make sure we're getting our money's worth.
        I'd like to go into another agency, the National Institutes
    of Standards. And I say to my colleagues, particularly the new,
    if you want to look at cool stuff, come to Maryland and what
    your great Federal labs are doing. And everyone here is
    familiar and enormously supportive of NIH. I know the Chairman
    certainly is. But the National Institutes of Standards, which
    it sounds kind of geeky, because they do measurements, really
    helps move jobs to the private sector.
        My question to you, Secretary Pritzker, could you elaborate
    on the labs to market and also how you're working with the
    private sector?
        I have an example here where MedImmune, a pharmaceutical
    company in my State that employs 2,000 people, that's just a
    few miles from NIST, has signed a contract with them, a 5-year
    Government agreement, giving it access to NIST expertise and
    measurement, and is helping pay for seven post-doctoral
    researchers to be used in pharmaceutical research. And
    MedImmune is crazy about this. They're going to be what the
    private sector does, but they need the Government to help them
    with the new measurements and the new way of accessing things
    for the new biosimilars and other products. So MedImmune says
    it can't grow and bring other ideas to market without NIST.
        Could you talk about what NIST means in labs to market?
    Because whether it's our Federal labs, whether it's our
    universities and so on, it is about, ultimately, the new ideas
    that create new products, that will create the new jobs. Could
    you elaborate?
        Secretary Pritzker. Yes, Senator. Recently, I was out at
    Stanford. And one of the things to remember, what does NIST do?
    NIST sets standards for everything that we use, whether it's
    buildings or it's biosimilars. So right now, in terms of
    biotechnology and bioengineering, it's extremely important that
    we begin to figure out how to measure things that are being
    developed in the laboratory so that then they can--first of
    all, those products can be replicated to a certain specificity.
    But if there's no way to measure what it is you've got, there's
    no way then to know if you've replicated it.
        So it's an extremely important function that we play. It's
    a very broad function. But it's absolutely--for innovation in
    America, and for the ability of our businesses not only to be
    successful in our country and innovate here, but also around
    the world, NIST, the development of standards, is something
    that is critical in this development of measurements. And that
    role is something that is one I've come to really appreciate.
        Senator Mikulski. So what is the labs to market going to
    do?
        Secretary Pritzker. So labs to market, we have a number of
    efforts. First of all, we have the National Network of
    Manufacturing Innovation, which is about how do we take
    technologies in manufacturing, and how do we bring them to
    market. And those are in different areas, whether it's 3D
    printing, composite materials, lightweight materials.
        There's other efforts in our Centers of Excellence at NIST
    that are focused on advanced materials, whether they're in
    biosimilars, forensic sciences, disaster resilience. These are
    areas where NIST will provide and work with a new business
    model to leverage outside research expertise with university
    expertise to bring these concepts and new discoveries to
    market.
        And these are topics that are developed in partnership. And
    that's what NIST is also really good at, is working in
    partnership with the most cutting-edge researchers, but also
    with the private sector, so that ideas don't just sit in our
    universities, or sit in our laboratories, whether they're
    Federal or they're private universities, it's important that we
    get those technologies out into the marketplace.
        Senator Mikulski. Okay. My time is up. But I just say to my
    colleagues, when we all worked with mammogram standards, it was
    NIST that helped develop what the standards should be, and I
    could give lots of examples. Come on down and visit. We'd have
    a good time.
        Senator Collins. Thank you, Mr. Chairman. Madam Secretary,
    welcome.
        Secretary Pritzker. Thank you.

                                UNFAIR SUBSIDIES

        Senator Collins. Along with my main colleague, Senator
    King, and Representative Poliquin, I recently wrote you about
    the unfair subsidies provided by the Provincial Canadian
    Government of Nova Scotia to a paper producer in Port
    Hawkesbury. I very much appreciate your very prompt response.
        Our highly skilled paper workers in Maine can compete
    successfully whenever there's a level playing field, but they
    cannot compete when a foreign government is providing more than
    $100 million of subsidies to a mill that is manufacturing the
    same kind of product.
        I understand that the coalition for fair paper imports,
    which includes Madison Paper Industries, which employs 240
    workers in my State, will soon file a petition for
    countervailing duties covering the imports of supercalendered
    paper from Canada in response to the more than $125 million in
    subsidies already provided by Nova Scotia.
        Can you update me on what the next steps would be in
    dealing with these unfair subsidies once the petition is filed,
    which will happen shortly?
        Secretary Pritzker. Senator Collins, first, as you know, we
    take enforcement and compliance very seriously at our
    department. Ensuring a level playing field is one of our number
    one priorities at the International Trade Administration, and
    enforcing trade remedy laws is something that is very, very
    important to me personally.
        We will keep you informed as we can. There are rules about
    what we can say at different points during the process. But as
    appropriate, absolutely, we would be happy to keep you
    informed.
        Senator Collins. Thank you very much. The other issue that
    I want to mention to you today is the U.S.-Canadian Softwood
    Lumber Agreement. This was negotiated in 2006, and it had been
    said to expire in 2013 but was extended to October of this
    year.
        I will tell you that this is an extremely complicated
    agreement. It involves different patterns of ownership of the
    land in Canada, different stumpage fees. The location of cross
    border mills makes it extremely complicated. And the previous
    agreement was plagued by a failure of our Government to enforce
    it fully when the Canadians, on occasion, violated it.
        As the deadline approaches for the expiration of the
    agreement in October, I ask that the Department as well as the
    U.S. Trade Representative, and I know you can't speak for him,
    but I ask that your department be very engaged with U.S.
    forestry stakeholders and the Canadian Government. And
    specifically, because of the complexity, because the maritime
    provinces are different in their ownership than British
    Columbia for example, because we have mills right on the border
    that process lumber that is cut, where the wood is cut in
    Maine, I would ask that you develop a process to ensure that
    the views of Maine stakeholders are considered as you go into
    the new negotiations.
        Secretary Pritzker. Well, Senator, I appreciate your
    raising this agreement. And we'll work with you and your staff
    to better understand the issues at stake and to make sure that
    we take the citizens of Maine's interests into consideration as
    we deal with it.
        Senator Collins. Thank you very much.
        Secretary Pritzker. Thank you.
        Senator Collins. Thank you, Mr. Chairman.
        Senator Shelby. Senator Baldwin.
        Senator Baldwin. Thank you. I don't know how often it is
    that a previous set of questions so well sort of queues up for
    what I want to ask you about the paper industry and a level
    playing field.
        So my first question is in relation to the Department's
    role in ensuring a level playing field for U.S. manufacturers,
    and particularly in the paper manufacturing sector. It's
    especially important in my home State of Wisconsin.
        And I do want to applaud the administration's recent WTO
    challenge to China's Export Subsidy program, which provides $1
    billion in illegal subsidies over 3 years. And while this $1
    billion subsidy, it's large, it pales in comparison to the
    estimated $33 billion in government subsidies that Chinese
    paper companies have received over the last decade.
        Now, not only are paper companies in China receiving
    extensive State-backed support, but we continue to see
    importers bringing Chinese paper products, especially thermal
    paper products, into this country that are subject to
    antidumping and countervailing duties, without paying a dime in
    duties.
        And I understand that the budget request contains $15
    million for the Interagency Trade Enforcement Center, which in
    my mind, should be working to eliminate these kinds of
    practices. In addition, there is $16.4 million specifically for
    China antidumping and countervailing duty enforcement and
    compliance activities. These amounts are similar to previous
    years, and yet paper companies in my State do not feel like
    there has been adequate attention to stem this tide.
        So do you agree that this is a significant problem? And if
    so, how is your budget going to help stop it?
        Secretary Pritzker. Senator, thank you. You know, trade
    enforcement is a big priority for us at the Department and this
    administration, and we need to be very serious about this to
    ensure that American workers and businesses are competing on a
    level playing field, as you mentioned, around the world.
        And the President established the Interagency Trade
    Enforcement Center in 2012 to enhance our ability to identify
    and address violations of trade agreements. And that's why
    we've asked for an additional $15 million in this budget to
    allow us to add personnel to the ITEC and continue to enhance
    these efforts to fight challenges like you were talking about
    for your paper industry and challenge and address unfair trade
    practices.
        [The information follows:]

        The Department of Commerce has had frequent conversations with
    Senator Baldwin's office on a number of requests the Senator had with
    Secretary Pritzker during the hearing. Per the request of the Senator's
    office, we held an AD/CVD briefing with her office. This briefing-
    covered the basics of AD/CVD as well as included a focus on cases
    involving China. Additionally we are working with Senator Baldwin's
    office to hold a joint DOC/USTR briefing on the basics of the ITEC
    program. We expect that briefing to take place soon.

        And I'd be happy to have our staff follow up on the
    specifics of the paper challenge for Wisconsin. I just want you
    to know though that, in terms of today, we have about 310
    antidumping and countervailing duty orders in place, and 40
    percent of those are on products from China. So we take this
    role extremely, extremely seriously. And last year alone, we
    brought more cases than we have any year in the past 10 years.
        Senator Baldwin. Thank you. I want to turn to another topic
    that was raised earlier, which is the National Network for
    Manufacturing Innovation. And I'm actually pleased to see that
    the President's budget request is working to make sure that the
    next wave of high-tech innovation is happening here in America
    rather than overseas.
        I can tell that, in my home State of Wisconsin,
    organizations like the Water Council and the Midwest Energy
    Research Consortium are really already doing the hard work of
    on the ground organizing of clusters of innovation around
    private industry and academia. And I give you an open
    invitation to come visit those efforts, which are very
    impressive.
        But as we move forward, I want to kind of dovetail on
    Chairman Shelby's question of what sort of input are you taking
    from the private sector, from academia in making decisions
    about what these next institutes will embrace? Is there an open
    call for ideas? Are you holding workshops? My constituents are
    very eager to know how they can highlight the work that's
    already being done on the ground.
        Secretary Pritzker. So as you know, the legislation passed
    at the end of last year, but NIST has been focused on how to
    run, how to garner this kind of information for the past
    several years and is putting in place--and that's why we've
    asked for the $10 million, but we have ideas and plans, but we
    want to garner that kind of input from the private sector to be
    able to have a broad effort outreach, so that we're gathering
    the best ideas available from the private sector.
        Senator Baldwin. Well, as those are developed, I hope you
    will come and have your staff brief interested subcommittee
    members on how that's developing, because our constituents are
    very eager to know.
        Secretary Pritzker. Would be delighted to do that. I know
    it's an area of interest to many of you.
        Senator Shelby. Senator Lankford.
        Senator Lankford. Thank you. And thanks for being here as
    well.

              INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS

        Secretary Pritzker. Thank you.
        Senator Lankford. Grateful to be able to have the
    conversation. I want to talk a little bit about where we stand
    with ICANN, once favored conversation, and DNA--or I'm sorry,
    DNS, not DNA. DNA would be fun to talk about as well, by the
    way, if you want to talk about that.
        But the budget request has a note in it that I thought was
    interesting. It says in fiscal year 2016, NTIA will continue to
    develop, implement, and advocate policies positioning the U.S.
    to meet growing complexities and political challenges related
    to Internet governance and the domain name system.
        Tell me the status of where you're headed on this. And
    obviously, Congress has spoken back on it, is a little
    hesitant. So specifically, while you're talking about status on
    it, how are you balancing the foreign policy objectives with
    United States commerce, and I mean commerce as a whole of our
    business world, and how dependent we really are on this
    Internet.
        Secretary Pritzker. Well, let me start by saying NTIA, our
    role is stewardship of the Internet. And so our goal has been
    to continue to move ICANN to a multi-stakeholder model. And in
    fact, we deal directly with ICANN, and the leadership of ICANN
    and their CEO is coming in tomorrow.
        Senator Lankford. Can I interrupt for just a second? The
    question there is the why. And I think it's the----
        Secretary Pritzker. Why?
        Senator Lankford [continuing]. Policy question, why try to
    move that outside of stewardship? Has it been a problem that
    we've been a steward with it? Why remove American stewardship
    from the Internet?
        Secretary Pritzker. Well, we're not giving up our
    stewardship of the Internet. But the challenge that we face
    with the ICANN IANA transition is this is a--and first of all,
    we're not going to give up our position of overseeing the IANA
    domain name situation, unless we can assure ourselves there's a
    multi-stakeholder process, and it's not going to be
    jeopardized, that there's going to be stability and resiliency
    and security in the domain name system, and that it meets the
    needs of global customers, and that the Internet will remain
    free and open.
        The challenge we face in our role is the perception of our
    role in the global environment. There is a lot of pressure, as
    you said, from foreign governments to, in essence, take over
    control of the Internet and try and create places where
    governments are in control of what's happening with the
    Internet. We think that is the wrong direction to go, and
    therefore, what we feel is that we're really an oversight.
    ICANN is actually performing the IANA functions.
        And so our goal is that ICANN continue to perform those
    functions. But the appearance of our engagement creates this
    notion of that the U.S. is a government in control, and that's
    against where we ultimately--we want to be able to argue with
    the rest of the world, that's not what we want to see of the
    Internet.
        Senator Lankford. Right. I understand. And the skepticism
    is when we release the first generation, there may be some good
    oversight of that, and then what happens 5 years from now and
    etc., so what happens with China and Russia? And we can have a
    longer conversation. I just want to be able to express some
    continuing skepticism on it.
        Secretary Pritzker. Senator, I share your concern about
    that. And one of the criteria that I've said is is we've asked
    for ICANN to explain to us how they're going to be accountable
    to a multi-stakeholder process, and there cannot be what I call
    a hostile takeover of ICANN.
        Senator Lankford. Correct. And I would affirm that. One
    other thing I just want to be able to chat about as well are
    the IG reports. As I got a chance to go through some of those,
    some of the high risk contracting, it sounds like you're
    working through that process on that. I'd just affirm that, to
    continue to press on that.

                  COMMERCE BETWEEN THE UNITED STATES AND CUBA

        And then one other question that I wanted to be able to
    bring up to you deals with Cuba and the Cuba policy at this
    point. You and I have exchanged letters back and forth, and
    thank you for being prompt in your response on that. I really
    do appreciate that.
        As we've exchanged letters, the question that I had is, the
    Administrative Procedures Act is pretty clear that you can only
    use the statement about this being foreign affairs related if
    there's an emergency situation. I'm still trying to determine
    what the emergency situation was to make the change in Cuba
    policy without going through the Administrative Procedures Act,
    without opening this up.
        Secretary Pritzker. Senator, I would have to work with my
    staff and your staff to address that specific issue, because
    I'm not familiar with it particularly, but I'd be happy to do
    that.
        Senator Lankford. Yeah, because glad to be able to follow
    up on it. What I don't want to do is open the door, which it
    appears to have just happened, because the President, any
    president--and this is not about a personal thing on the
    President by any means and their agreement and disagreement on
    Cuba policy and where it's going, but when we make a change in
    policy that doesn't follow the Administrative Procedures Act
    and you reach back on a 70-year-old law and say, we're going to
    practice this a little different than what has been done in the
    past, it concerns me.
        Secretary Pritzker. I understand your concern.
        Senator Lankford. And the change in Cuba policy seemed to
    be connected to, this is foreign, and so it's allowable. With
    that exception, anything related to a foreign government would
    be allowable. And the Administrative Procedures Act was pretty
    clear it had to be an emergency situation.
        Secretary Pritzker. Well, following the law is our number
    one objective here at the Department of Commerce, and in terms
    of the specifics of the Cuba policy as it relates to the
    Administrative Act, we'll be happy to follow up with your
    staff.
        Senator Lankford. Thank you. We'll follow up from there.
    Thank you. I yield back.
        Secretary Pritzker. Thank you.
        Senator Shelby. Senator Shaheen.
        Senator Shaheen. Thank you, Mr. Chairman. Thank you,
    Secretary Pritzker, both for your service and for being here
    today.

                           NOAA MANAGEMENT OF FISHING

        Secretary Pritzker. No, thank you.
        Senator Shaheen. My first concern that I want to raise
    today is about the impact of NOAA's management decisions on our
    fishing industry in New Hampshire. I think we all share the
    concern that we want to see stocks rebound in the Gulf of Maine
    and in the Atlantic. But in November, NOAA announced the
    immediate implementation of additional closures in the Gulf of
    Maine and other limitations on fishing capacity for the
    remainder of this fishing season.
        I've heard concerns from fishermen in New Hampshire, not
    just about the decisions that were made, but also about the
    lack of notice and about the lack of transparency in how this
    process was handled.
        New Hampshire, which started out as the smallest fishing
    fleet in New England, has been hit hardest by management
    decisions for years now. The latest regional economic impact
    estimates predict that New Hampshire fishermen are likely to
    see their reduced revenues cut by an additional almost 50
    percent from this year to next. And that's more damage than any
    other State in our region is experiencing.
        So not only am I concerned about the decisions that have
    been made and the impact, but also about the lack of
    transparency, the lack of engagement with the industry, and the
    lack of notice. So I wonder if you could speak to that, and if
    you could give me a commitment that you will personally look at
    what's being done there and see what we can do to make some of
    those decisions less impactful on New Hampshire?
        Secretary Pritzker. Well, Senator, first of all, I know how
    important fishing is to all the coastline communities, and
    particularly in New Hampshire. And, you know, it's a difficult
    time, as you know, for New England fisheries and communities.
    And that is why we put John Bullard up in that area, to work to
    assist, and working with the communities and fishermen.
        And I will follow up with him to understand what the issue
    might be around notice and transparency. He prides himself in
    trying to work very closely with all of the stakeholders, and I
    have a lot of confidence in him, so I want to find out exactly
    what happened.
        Obviously, it's a tough time, because the stock is in the
    worst shape that we've seen in 40 years. And so we appreciate--
    I am very sensitive to the impact on families, on the
    businesses of these decisions, and I will personally look into
    this issue around transparency and notice, because we
    absolutely--our goal is to work very much with the
    stakeholders, local stakeholders, and that's why we actually
    put someone in the marketplace.
        Senator Shaheen. Well, thank you. I appreciate that. I hope
    that thought will also be given to how to ameliorate the impact
    on the fishing industry in New Hampshire, which, as I said,
    started out with some obstacles that are not shared by other
    states in New England.
        Secretary Pritzker. And we're working on making sure the
    fishery disasters funding----
        Senator Shaheen. Which has been very helpful. Thank you.
        Secretary Pritzker [continuing]. It gets to the State as
    quickly as possible.

                                 EXPORT CONTROL

        Senator Shaheen. Thank you very much. I was pleased to
    hear, both in your testimony and your written testimony, the
    emphasis on exporting. I think it's very important. It's been
    very important to our small businesses in New Hampshire. And
    one of the aspects that has been challenging for many of our
    businesses has to do with our export control system, and I know
    that has been under reform over the last several years.
        And I wonder if you could both talk about where we are in
    terms of reforming the export control system and also what kind
    of efforts are being undertaken to get the word out to small
    businesses about the changes that are being made and what kind
    of reaction you're getting from them with respect to those
    changes.
        Secretary Pritzker. Well, Senator, I appreciate your
    asking. As you're aware, the Export Control Reform, we have
    about 15 of the 21 munitions lists are completed at this point,
    and we're continuing to make progress on the simplified system,
    so that we can strengthen our national security and
    competitiveness. That will mean for BIS that our number of
    licenses per year will go from 25,000 to over 50,000 by fiscal
    year 2016. So we're sort of more than doubling both licensure
    work.
        In order to do that well, it's really important that we
    have funding to be able to get the word out. We have not had
    funding over the past several years to be able to really go out
    and promote what's happening in terms of Export Control Reform.
    That would be extremely important. And then the second is,
    we're requesting funding to increase enforcement, something
    that I know is of interest to a number of the senators here.
        As we increase the number of licenses, we need to be able
    to increase enforcement as well as we need to be able to
    increase our ability to gather information before we give a
    license to someone. So we're very much focused on how all of
    this is connected together. We want to service our clients as
    well as possible, and that's why you see us asking for an
    increase here. It's really due to the fact we're being asked to
    do much more work because of the new items, I think it's tens
    of thousands of items, that have been transferred from the
    State Department to us.
        Senator Shaheen. Well, my time is over, but again, I want
    to applaud that effort and encourage you to continue to work
    very hard on that and to suggest that maybe there's an
    opportunity working with SBA to help with outreach to small
    businesses, because they have fewer resources to be able to
    export, and anything that can be done here is really important.
        Secretary Pritzker. And I'm quite focused on helping small
    and medium sized businesses export. I've had a lot of
    opportunity to meet with them over the last several months.
        Senator Shaheen. Thank you.
        Senator Shelby. Senator Collins, you have a comment.
        Senator Collins. Thank you, Mr. Chairman. Since I had 40
    seconds of my time that I didn't use, I would just want to
    reclaim it, and I thank the Chairman for allowing me to do so.
        I just want to associate myself with the comments made by
    the senator from New Hampshire on the fishing issues. I've
    heard exactly the same concerns from the lobstermen and the
    fishermen who fish and do lobstering in the Gulf of Maine. And
    there's a great deal of anger about the new regulatory
    restrictions, the lack of consultation, and I'm very concerned
    about it. So I just wanted to associate myself with Senator
    Shaheen's comments. Thank you, Mr. Chairman.
        Senator Shelby. Senator Kirk.
        Senator Kirk. Secretary Pritzker, Penny, I wonder if I
    could raise an issue with you about OSI, one of our largest
    food processors in Illinois, who has had problems with the
    Chinese Government. I know you may have raised these issues at
    the JCCT, which you graciously held in Chicago.
        Secretary Pritzker. Senator, let me tell you. I did speak
    at the highest levels about OSI to the Chinese Government. We
    are following this case very carefully to make sure that OSI is
    being treated fairly. There have been some positive signals
    that we have received, and so this is something that's high on
    our priority list to follow.
        Senator Kirk. Thank you. Thank you, Mr. Chairman.
        Senator Shelby. Senator Murphy.
        Senator Murphy. Thank you very much, Mr. Chairman. Welcome,
    Madam Secretary.
        Secretary Pritzker. Thank you, Senator.

                               FISHING REVISITED

        Senator Murphy. I wanted to follow up on questions
    regarding New England fishing. In Connecticut, our fishing
    industry has been decimated. We were largely a shellfish
    economy along the shoreline. And as our lobsters have moved
    northward to Maine, we have struggled to figure out how we
    replace that capacity. But aquaculture has been a part of that,
    and we've had some real encouraging developments regarding new
    technologies through which we're able to harvest some pretty
    serious new amounts of oysters and other native species through
    the sound.
        We have a lab in Milford, Connecticut that gets about $3.4
    million in Federal funding along with lab in Manchester,
    Washington. These are the two facilities that house NOAA's
    shellfish research. That's an industry that, right now, even
    with the declines, produces about $30 million for Connecticut
    along.
        I just wanted to make sure that there's still going to be a
    commitment to this aquaculture research, both in Connecticut
    and in Washington. We're seeing real progress and real gains
    because of that funding, and it's important to us that that
    commitment continue.
        Secretary Pritzker. I appreciate that. And as far as I
    know, there's no change. But I will make sure and confirm that.
        [The information follows:]

        Question. Aquaculture and Milford Lab.--We have a lab in Milford,
    Connecticut that gets about $3.4 million in Federal funding along with
    lab in Manchester, Washington. These are the two facilities that house
    NOAA's shellfish research. That's an industry that, right now, even
    with the declines, produces about $30 million for Connecticut. I just
    wanted to make sure that there's still going to be a commitment to this
    aquaculture research, both in Connecticut and in Washington. We're
    seeing real progress and real gains because of that funding, and it's
    important to us that that commitment continue.
        Answer. Yes, that commitment will continue. Science is essential to
    supporting aquaculture expansion in an intelligent and sustainable
    manner, and NOAA supports U.S. aquaculture development in part through
    world class research. It is clear from past experience both at home and
    abroad that poorly sited or managed marine aquaculture operations can
    have negative impacts to the marine environment. But with sound
    scientific advice and science-based tools, it is possible to avoid such
    potential impacts and allow for the industry to grow in environmentally
    and economically sustainable ways.
        NOAA' s aquaculture science portfolio comprises complementary and
    coordinated efforts in three NOAA line offices. Together these efforts
    are critical to achieving the administration's goal of supporting
    sustainable marine aquaculture. NOAA Fisheries focuses on developing
    science-based ``tools for rules'' to help inform permitting and other
    regulatory decisions, as well as working with industry partners on a
    range of topics such as hatchery techniques and disease management. The
    NOAA National Ocean Service develops coastal planning and management
    tools and services. The Sea Grant program at NOAA's Office of Oceanic
    and Atmospheric Research provides grants to external partners for
    industry development, as well as technology transfer and extension.
    These efforts and those of other Federal agencies (e.g., USDA) are
    coordinated under the 2014 The Strategic Plan for Federal Aquaculture
    Research, published with NOAA' s assistance and leadership by the White
    House's Office of Science and Technology Policy.
        Two laboratories house the bulk of NOAA Fisheries' aquaculture
    science portfolio--the Northeast Fisheries Science Center's Milford,
    Connecticut lab; and the Northwest Fisheries Science Center's
    Manchester, Washington lab. Milford has traditionally been a shellfish
    aquaculture lab (e.g., siting tools, disease management, and ecosystem
    services) and Manchester has been a finfish aquaculture lab (e.g.,
    feeds development, finfish hatchery and growout methods). However,
    there is growing coordination and collaboration in certain areas such
    as some aspects of feeds research.
        NOAA's science, regulatory, and outreach activities have made a
    substantial and measureable impact on the sustainable development of
    marine aquaculture and related jobs, especially in the northeast. From
    Virginia to New England, aquaculture has grown significantly over the
    past several years, with booming production of shellfish leading the
    way. Aquaculture in the northeast has grown to be the third most
    valuable fishery in the region, behind only lobster and scallops and
    roughly three times the value of the groundfish fishery. All
    indications are that, with continued support, there will be additional
    growth, providing more domestic seafood and jobs.

                 NATIONAL NETWORK FOR MANUFACTURING INNOVATION

        Senator Murphy. And then if I could just ask a second
    question on the National Network for Manufacturing Innovation.
    I know you made reference to this in your prepared testimony.
    I'm so glad that we're continuing to expand this program. I
    think it's absolutely transformational. It's discouraging to us
    in the Northeast, which is the most densely populated part of
    the country, that with five centers, and not yet one has found
    its way to our neck of the woods.
        You, I think, in your testimony said that you were going to
    be guided by industry in terms of what the focus should be. I
    would love for you to expand on how your process is going to
    occur, so that we can make sure that industries in the
    Northeast, the aerospace industry, I would argue, at the top of
    the list, get a fair shot at making their case.
        We really believe that, as you have this tsunami of
    aerospace purchasing coming, both from the private sector and
    the public sector over the course of the next 10 years, that if
    we are innovating at a pace that's fundamentally different than
    other competitors, that we can gain a greater lion's share of
    that work. So we believe that an aerospace focused
    manufacturing innovation center should be one of the next
    that's authorized.
        But if you could just share how we can get the best input
    into your process of decisionmaking, I'd appreciate it.
        Secretary Pritzker. Well, obviously, at the time that the
    competitive process would be run, it would be open,
    transparent, and a broad request for proposals. That process
    will be dictated by NIST, as they are really our expert at
    taking things from lab to market, and they've been preparing
    for how to run these types of competitions. But I can get to
    your staff kind of the specific processes that they will use.
    And I appreciate the value of the aerospace industry, and I'm
    sure it's one that's high on the list of priorities.
        Senator Murphy. It's a moment in time where, if we capture
    the best available technology, there's a mountain of work to be
    had. And we used to just have a natural competitive advantage
    over the rest of the world that is declining, decreasing as
    time goes on.
        Finally, just to use my last 30 seconds of so, it's my
    first opportunity to be a member of this subcommittee and to
    have you testifying in front of us. I just want to tell you how
    excellent your staff is in Connecticut. Anne Evans runs the
    local office, and if she had two or three more people, she
    could be creating hundreds, if not thousands, more jobs, just
    to make an advertisement for the scope of your personnel in our
    states.
        When you have good people on the ground doing outreach to
    especially these small and medium sized businesses that have no
    idea how to compete globally if not for the expertise you lend,
    the power, the multiplication of business that your presence
    creates is pretty substantial. So please, pass my thanks along.
        Secretary Pritzker. Thank you very much. And Senator and
    Mr. Chairman and Madam Vice Chairman, one of the things I have
    asked our ITA to do is to do a review of the effectiveness of
    our U.S. Export Assistance Centers and our Foreign Commercial
    Service.
        As the success of more and more of our communities around
    our country depend upon exporting, I want to come back to you
    with a report as to where I think it would make sense for us to
    do more, because we do get this kind of response as to the
    effectiveness, particularly for our small and medium size
    businesses, which are so important to everyone's States.
        [The information follows:]

        The Department looks forward to working with the Congress on a
    funding profile for our export assistance program which ensures that
    U.S. small and medium sized businesses are on a strong competitive
    footing internationally. The Department is currently assessing our
    domestic and international capacity for meeting this goal and will
    provide any new information concerning the proposed direction of this
    effort at the appropriate time.

        Senator Murphy. Thank you.
        Secretary Pritzker. Thank you.
        Senator Shelby. Senator Capito.
        Senator Capito. Thank you, Mr. Chairman. And since this is
    my first hearing of this subcommittee, I want to extend to you
    and the Ranking Member congratulations. I look forward to
    working with both of you, and I'm very honored to serve on the
    subcommittee.

                     HERBERT C. HOOVER BUILDING RENOVATION

        Madam Secretary, thank you for having the freshman class
    down to your building, which when you mentioned in your opening
    statement that you wanted to modernize, I think you'll get all
    of us to agree, that's probably a good idea. It was beautiful
    in the library, but as you explained to me, this is as good as
    it gets.
        Secretary Pritzker. Right.

                                BROADBAND ACCESS

        Senator Capito. So anyway, I appreciate that. A recent
    study by the FCC indicated that 56 percent of West Virginia
    residents do not have access to broadband services that meet
    the FCC benchmarks. In rural areas in West Virginia, it's as
    high as 74. It is the worst in the Nation. And I don't claim
    that as a source of pride, either. But I don't need a study to
    understand this. I mean, when I'm seeing constituents driving
    around, there are small businesses and individuals and
    residents who absolutely are hamstrung in terms of being able
    to get broadband in West Virginia.
        Within your department, the National Telecommunications
    Information Administration recently released a study talking
    about the economic benefits of broadband access in terms of
    increased economic output and higher levels of employment.
    Understanding how these funds are spent, I think we find
    ourselves, in our State, in a bit of a quandary, because there
    are many states that have access, and so what they want now is
    faster, broader, bigger capacities when there's still parts of
    the country, and particularly where I live, where we're still
    not even getting a minimal standard.
        And so if you're looking at allocating funds and
    emphasizing where you're going to place your real strength in
    terms of dollars, I think that presents a--not controversy, but
    you have to make decisions. So I guess I would ask you, how are
    you looking to help build out those areas that are underserved
    and still lacking in access? And are there any programs that
    you're developing that will target these areas, particularly
    the rural areas, because that's what's left, the more sparsely
    populated areas, which do not meet the national average for
    access?
        Secretary Pritzker. So Senator, NTIA used to have grant
    money under the BTOP program, which actually exceeded our goals
    and put about 113,000 miles of broadband networks down in the
    United States and connected schools, libraries, I think 25,000
    schools, libraries, health facilities.
        Those funds have been spent. I think they were appropriated
    in 2009 and 2010. And so now what we're doing is, we're talking
    the expertise that we have, and we're working with communities,
    such as the ones that you're talking about in West Virginia, on
    technical assistance. And in fact, I went out to Cedar Falls,
    Iowa with the President to look at what communities can do to
    bring state of the art--they have one gigabyte of broadband----
        Senator Capito. That's what we have.
        Secretary Pritzker. Which is equivalent to the best in the
    world, one gigabyte.
        Senator Capito. Oh, no, we have----
        Secretary Pritzker. No. You've probably got one megabyte or
    something.
        Senator Capito. One megabyte.
        Secretary Pritzker. Right. Exactly.
        Senator Capito. I'm getting my megas and gigas mixed up.
        Secretary Pritzker. I'm right there with you. But
    basically, we're working with communities to how can they come
    up with plans to actually do broadband themselves. And so we're
    using our technical expertise to help them.
        And Cedar Falls was able to borrow the money and pay it
    back in 5 years by virtue of putting in this broadband access.
    And in fact, what they're hoping to do is do more in more parts
    of their State. So I've seen where communities can kind of take
    the reins in the own hands and really improve their access to
    broadband, which we know is so critical for not just economic
    prosperity, but for education and for communication and for
    safety.
        Senator Capito. Well, thank you. And I hope that we can
    work together to try to meet this challenge.
        Secretary Pritzker. Absolutely.
        Senator Capito. Lastly, I would say, your department,
    through NOAA, has quite a substantial infrastructure investment
    in Fairmont, West Virginia, and we're very, very happy about
    that. The I-79 Technology Park, which has your backup data
    system, I would just like to put a plug in for expanding your
    footprint in that area. You already have made quite an
    investment. The park is the location for the backup ground
    stations for your GOES-R Series and your JPSS satellites.
        Secretary Pritzker. Oh, terrific.
        Senator Capito. Yes. And I know it's not complete, but I
    think there will be excess capacity there, we are told, not
    just as your backup data center, but there will also be some
    possibilities for growth. I'd like to work with you to try to
    grow that footprint.
        Secretary Pritzker. We would be delighted to work with you.
        Senator Capito. All right. Thank you so much.
        Secretary Pritzker. Thank you.
        Senator Shelby. Thank you, Senator. We'll go into a second
    round, Madam Secretary.

                                   THE CENSUS

        The Department of Commerce has the responsibility, as you
    well know, to administer a constitutionally mandated census
    every 10 years. The 2016 budget request that I mentioned in my
    opening statement includes a significant investment in
    enterprise computer system that will help not only the Bureau's
    annual statistic activities, but will be scalable in order to
    accommodate the activities of the upcoming 2020 Decennial
    Census.
        Having an enterprise system that can serve the data
    collection backbone of the Bureau holds great promise for both
    cost reduction and efficiency. If this new computer enterprise
    were to fail, we could see costly impacts across the Census and
    the Department. We've been there before. This comes at a time
    when Census currently only has, as I understand it, 17 of 34 of
    its own 2020 Census requirements base-lined.
        The question is this, Madam Secretary. What is the
    Department of Commerce doing to ensure that this system, a
    CEDCaP will not become another costly technological setback
    that could potentially endanger all of the other data
    collection activities at the Census? You have a lot of that.
        Secretary Pritzker. Senator, you know, CEDCaP is a very
    important endeavor, because what we need to do is bring
    together I think it's 14 different systems in order to
    streamline the way that we do the Census. So it's a system of
    systems. So why should we have any confidence that we can do
    this?
        First of all, it's something that we are working on the
    development of CEDCaP at this time. We have to test it. I know
    this from my private sector experience, Senator. I ran a
    company that was a complete bits and bytes company, and we did
    a total systems transformation, and I know how perilous those
    can be. This has enormous attention and profile within our
    department. We are very focused on this, not just at the Census
    level, but in the Office of the Secretary and with our Chief
    Information Officer for the entire department.
        But the way one does these types of systems is you have to
    chunk them out, and you have to test them as you go, so that
    you don't have one big moment, whether it either works or
    doesn't work. And that's why it's so important that we get
    funded for fiscal year 2016, so that we can do, I keep harping
    on this, and you'll hear me say this, testing, testing,
    testing. Because we need to know that the opportunity, to not
    just put a system in place but to run the Census at cost of $13
    billion rather than a cost of $18 billion, is one that's
    achievable.
        And as a steward of the taxpayers' dollars, this is
    extremely important to me. But we have to invest in order to
    save that money, because we have to test to know these systems
    will be reliable, because we're held accountable for an
    accurate census, and that's something we take near and dear to
    our hearts as our core responsibility.
        Senator Shelby. I know you bring a lot of private sector
    experience here, but failure can't be an option here. It
    wouldn't be in the private sector. The business would be gone,
    would it not?
        Secretary Pritzker. I hear you, and I have been in this
    situation before in the private sector where failure is not an
    option as you transfer systems in. So therefore, we bring a
    very disciplined approach to this.

                                   FISHERIES

        Senator Shelby. Absolutely. Appreciate that. I want to get
    back into fisheries. We've been talking about it from every
    perspective. The Department has the important responsibility of
    managing our Nation's fisheries through the National Marine
    Fisheries Service. Regulatory decisions which are based on
    fishery stock assessment data, getting back to your database,
    can significantly affect commercial and recreational fishermen
    and cause economic harm and disruption when the data is
    erroneous.
        For example, Madam Secretary, last year, a Federal judge
    ruled that the Department mismanaged the red snapper fishery
    industry in the Gulf of Mexico. The result was a nine-day red
    snapper season. Nine days, down from 40 days the year before.
    Well, it's needless to say, the shortened season was very
    disconcerting to me and to thousands of fishermen in the Gulf,
    especially around Alabama, Mississippi, and Florida.
        New technology may facilitate better decisionmaking to
    allow more days at sea for our fishermen. While I'm pleased to
    see the Department taking steps to use new technology, I'm
    concerned that the program is not moving fast enough.
        My questions are these. How is the Department prioritizing
    the use of new technology, such as electronic monitoring and
    reporting, to better understand and manage our Nation's
    fisheries? And the second question is, what is the biggest
    obstacle facing your department, the Department of Commerce, on
    the timely transition to electronic monitoring and reporting
    for fisheries.
        Secretary Pritzker. Thank you for your question. First of
    all, the fact that the red snapper stock is rebuilding is one
    that we're very pleased with, and getting the allocations right
    in terms of who has access to fishing and for how long is
    something that's extremely important to us. I'm not familiar
    with the specific case you talked about, but I will look into
    that. Making sure that we get that right is a high priority.
        As it relates to electronic monitoring of fisheries, we
    have asked for $7 million to continue to find new ways to
    accurately monitor fisheries. In terms of your question as to
    what are our obstacles, one is more work needs to be done to
    know whether this is accurate. You just talked about being
    accurate. What's most important is that we figure out that
    these technologies are actually accurate.
        And we've run some pilots. We've asked for money in the $7
    million to support pilots in different parts of the country to
    make sure that this is something that's accurate, because there
    are real consequences, the finding, as you said, of electronic
    monitoring. And we want to make sure that we can both maintain
    our healthy fisheries for generations to come but also have our
    commercial and recreational fishing industries can be healthy
    and reliable.
        Senator Shelby. Well, I know myself that a lot of people on
    the Gulf are pretty good at all this, have shown me how large
    the snapper have gotten.
        Secretary Pritzker. Huge.
        Senator Shelby. Because they've gotten so big, and there's
    so much of them, we want an accurate count, because this is
    very important to a lot of us on the Gulf.
        Secretary Pritzker. I appreciate that, and I understand the
    challenge.

                             NOAA RESEARCH VESSELS

        Senator Shelby. My last question to you, I hope it'll be my
    last, has to do with the new ocean research vessel. The 2016
    budget request for the National Oceanic and Atmospheric
    Administration includes $147 million for a new ocean going
    research vessel to support the agency's operations. The agency
    needs a new ship, because the fleet is aging, as you pointed
    out.
        Out of 16 large vessels, and I believe you mentioned this,
    only 6 are operating within their design life. Three of the 16
    ships are well past their prime, including the oldest ship in
    the fleet, the Oregon II, which operates out of the Gulf Coast.
    Aging ships not only create operational shortfalls with low sea
    days, they also pose safety concerns for the crew and
    scientists working aboard.
        I'm not sure how many people realize this problem at the
    Department. The 2016 request for this new ship seems like a
    one-time ask and lacks context about the overall need for the
    whole major ongoing ship construction, the whole program.
        My question is this. This subcommittee has asked for, but
    has not received yet, a new fleet recapitalization plan, which
    was last updated in 2008. When will the administration provide
    this plan to the Appropriations Committee?
        Secretary Pritzker. Senator, I commit to you that we will
    put that plan together. I think it's being progress.
        Senator Shelby. And it's important to hear, because----
        Secretary Pritzker. But absolutely, the idea of--we have 8
    of our 16 ships that absolutely need to be replaced over the
    next 12 or 13 years, and so there is a plan in terms of the
    scope of what we need to do. More specifics, I will get to you
    and your staff.
        [The information follows:]

        Question. NOAA Fleet Capitalization Plan.--My question is this.
    This subcommittee has asked for, but has not received yet, a new fleet
    recapitalization plan, which was last updated in 2008. When will the
    administration provide this plan to the Appropriations Committee?
        Answer. NOAA's Fleet Composition Report (2012-2027) is currently
    under Administration review; however, I do not have a specific time
    line in which it will be available. This report, outlining
    recommendations for recapitalization, was coordinated with the overall
    Federal fleet. NOAA convened the NOAA Fleet Advisory Committee, a group
    of external experts from other Federal agencies involved with the
    management of at-sea assets, which was charged with providing advice
    and guidance to help the NOAA team shape strategies for the future of
    the fleet. Specifically, the committee reviewed and provided input on
    each stage of the effort including the overall approach, requirements
    validation process, technology infusion analysis, business process
    improvements, and internal and external communication plans. Committee
    membership included representation from the U.S. Navy, U.S. Coast
    Guard, National Science Foundation, Bureau of Ocean Energy Management,
    Environmental Protection Agency, and University-National Oceanographic
    Laboratory Systems.
        NOAA is requesting $147 million in the fiscal year 2016 budget for
    the construction of a new Ocean Survey Vessel (OSV). This request is
    based on a robust Requirements Validation Assessment and analysis
    process that built upon the 2008 recapitalization plan.
        Per the Federal Oceanographic Fleet Status Report, released May
    2013 by the National Ocean Council, the Federal oceanographic fleet
    will experience a 50 percent decline in the number of active vessels by
    2026 without further modernization. Without an investment, NOAA
    estimates that its fleet will decline by 50 percent from 16 to 8 active
    ships between fiscal year 2016 and fiscal year 2028.

        Senator Shelby. Okay. Will the contract for the ship
    construction be awarded through open competition?
        Secretary Pritzker. It would be awarded, yeah, I believe
    so. Yes. Yeah, absolutely.
        Senator Shelby. Thank you.
        Secretary Pritzker. I don't know any reason why it isn't.
        Senator Shelby. Thank you a lot. Senator Coons.
        Senator Coons. Thank you.
        Senator Mikulski. Excuse me, Senator Coons.
        Senator Coons. Yes, ma'am.
        Senator Mikulski. Madam Secretary, I'm needed at the
    Capitol, because of the Homeland Security.
        Secretary Pritzker. Yes.
        Senator Mikulski. We're going to follow up. Thank you for
    the great job you're doing. And aren't we proud of these new
    members and how engaged they are?
        Secretary Pritzker. Absolutely.
        Senator Shelby. Thank you.
        Secretary Pritzker. Thank you.
        Senator Shelby. Thank you, Senator Mikulski. Senator Coons.

                                 MANUFACTURING

        Senator Coons. Thank you, Chairman Shelby and Vice Chair
    Mikulski. As you well know, Madam Secretary, I'm an enthusiast
    for manufacturing.
        Secretary Pritzker. Yes.
        Senator Coons. And look forward to continuing to work with
    you on promoting manufacturing nationally. Last October, I
    participated in Manufacturing Day, touring a variety of
    manufacturing plants up and down my State, and was joined by
    NIST director, Dr. May, and associate director, Dr. Singerman,
    and we had a great time visiting Air Liquide, and PPG, and
    Hirsh Industries. And I'm just grateful that you and your
    department and its leadership have been so engaged in all the
    challenges and issues facing manufacturing.
        One of the things we saw that day was the real challenge in
    the reputation that manufacturing has with young people,
    getting guidance counselors and parents to recognize that
    modern manufacturing is cleaner, more advance, higher paying,
    uses a wider range of skills than the manufacturing of 20 or 30
    years ago.
        So first, I'd love your input on what we're doing together
    and what more we could do to help persuade young people that
    manufacturing jobs are fundamentally different and ensuring
    that they are engaged and attracted to it as an option, and
    that we're investing enough in their skills.
        And related to it, is the MEP, the Manufacturing Extension
    Partnership, I'm pleased your budget request is at $141
    million. I think it's a tremendous and effective program. It's
    had a big impact up and down my State, and they typically
    generate three dollars for every one Federal dollar. There have
    been some challenges in my State in terms of raising the match,
    and I would be interested in your thoughts about whether or not
    the MEP match ratio is too high.
        It has prevented them from working with some smaller
    businesses, some more rural companies that had difficulty
    raising the match. MEP charges fees in order to get the match.
    And in my view, that cost share may actually be defeating the
    broader purpose, which is to deliver timely and efficient and
    effective interventions that promote exporting, promote hiring,
    promote growth for the small and medium manufacturer.
        So if you'd answer those two questions on manufacturing,
    we'll move onto one other topic.
        Secretary Pritzker. Certainly, Senator. In terms of the
    image of manufacturing and what are we doing about both the
    image and skills acquisition, as you know, I've made skills a
    priority for the Department of Commerce. In terms of the image
    of manufacturing, Manufacturing Day is only one day. We had
    50,000 young people go through. I think we doubled the number
    of companies. Over 1,500 companies opened their doors in their
    communities and had kids and their families. And most
    importantly their guidance counselors visiting modern
    manufacturing plants so they could understand what is a career
    today in the 21st century and manufacturing in the United
    States of America.
        I do think it's misunderstood. It's something both the
    Advanced Manufacturing Partnership that the President oversees
    and I'm a part of, as well as the Manufacturing Council that
    reports to me at the Department, are focused on a number of
    initiatives to improve the image of manufacturing.
        In terms of the MEP match, we are in the middle of
    recompeting our MEP relationships around the country. We just
    did ten of them. We changed the match from two to one to one to
    one for exactly the reason you're talking about. The small and
    medium size companies were struggling to be able to take
    advantage of the much needed services that MEP offers to help
    them garner 21st century processes and capabilities that keep
    their companies globally competitive.

              INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS

        Senator Coons. Let me ask about a very different field for
    a moment, if I might, which is ICANN. When I was in the private
    sector, I did some work around web domains and website
    acquisition and control. We had a trademark, the company I was
    in, that had been inappropriately taken over as a web domain by
    a company with no relationship to it. And I got involved in
    this, this was a long time ago, and was struck how, at that
    point, NTIA was playing a critical role in oversight of ICANN,
    excuse me, the Internet Corporation for Assigned Names and
    Numbers, which I think is widely known to the small community
    of people who pay a lot of attention to this.
        And I'm frankly very concerned that there is a proposal to
    transition ICANN completely away from Commerce Department
    oversight and management. And I just want to make sure that
    ICANN is really prepared to make that transition and will have
    adopted some core key principles about protection from
    government capture, budgetary restraint, and a separation of
    functions. And this is something I wrote to you about back in
    December and cosponsored a resolution that passed the Senate,
    calling for these reforms before there is any transition. I
    just wanted to make sure that I had your sense of whether you
    thought these reforms were important to complete before there's
    any movement towards it.
        Secretary Pritzker. Well, Senator, I share your concern. I
    think the transition, the IANA transition, is one that's
    important, because there are downsides for our engagement
    there. Having said that, making sure that ICANN can responsibly
    continue to carry out that function, making sure that it is
    multi-stakeholder managed and driven, making sure it meets the
    needs of customers and in a timely and efficient manner, and
    that we remain a free and open Internet, all of those are
    priorities.
        We are awaiting proposals. We're not in any rush. We're
    working very carefully with ICANN, but we're waiting for
    proposals as to how they can make sure they would satisfy all
    those performance requirements, and also proposals for how they
    will improve the accountability of ICANN, so that there cannot
    be what I call a hostile takeover of the board of ICANN.

                     HERBERT C. HOOVER BUILDING RENOVATION

        Senator Coons. Good. Please. I'm very concerned about that,
    and I'm glad you're moving deliberately. As we're talking about
    performance, just on a side point, part of your budget request
    is $24 million for renovating the somewhat dated Commerce
    central office and headquarters buildings. And I just wondered
    whether you had looked at an Energy Services Performance
    Contract, or an ESPC, as a mechanism for achieving savings in a
    way that is, I think, creatively and appropriately financed.
        I used ESPCs both in county government and in the private
    sector, and I'm joining with Senator Gardner in trying to make
    sure that the Federal Government is able to take advantage of
    this as an opportunity. I see several heads nodding behind you
    vigorously.
        Secretary Pritzker. Yes. Yes, we have.
        Senator Coons. So I'm glad to know that you've taken a hard
    look at that.
        Secretary Pritzker. Senator, one of the things that we're
    doing, I think the theme of our budget is about invest to save.
    When I arrived, as you know, one of my business endeavors prior
    to this was being in the real estate business. We do not
    efficiently use our building as it is. One of the things that
    we are doing is--and we brought in Gensler to help us to look
    at how we use our space, because the modeling plan that was in
    place was one that was really just fix the heating and cooling
    and electrical and put it back the way it was. That makes no
    sense in the 21st century.
        So we actually took part of the space that was, at that
    time, under renovation, and have created a pilot that we're now
    going to replicate throughout the building that's much more of
    what I would call open space contemporary office usage. It's
    far more efficient.
        And the other thing that we're trying to do is do the
    renovation in fewer chunks, because this was going to go out
    over decades, and get it done more quickly. It will allow us to
    give more of our space back and to have it be used for other
    purposes and to use the space more efficiently, but also
    provide an environment that's effective and efficiently, and
    allows us, frankly, to attract talent, which is an issue that
    we've got in an 80-year old building. People walk in, they
    don't want to work there. And so that's a challenge that we've
    got.
        So what we're trying to do is, this is not just about
    fancying up our space. This is about making it more productive
    for the American taxpayer.
        Senator Coons. Thank you. I have two other questions I'll
    just reference briefly, and perhaps my office will submit them
    record. I'm trying to be respectful of the Chairman's time.
        First, as the lowest mean elevation State, Delaware has
    great concerns as to why about a resiliency and planning. We've
    just had evidence that the sea level rise of the last few years
    was unexpectedly significant in the Mid-Atlantic and
    Northeastern states. We face both subsidence, which is the
    natural geologic movement down of the part of the coast that
    we're on, and a rise of sea level. I'm just wondering what
    NOAA's budget might provide for coastal resiliency.
        Last, hubs. The National Network for Manufacturing
    Innovation, as you know, I was bitterly disappointed Delaware
    was not selected for the last competition but remained very
    enthusiastic about it programmatically. I think it is a
    tremendous investment for the American people, a wonderful
    model for promoting and accelerating innovation, and would
    welcome any brief comments you care to make about how that will
    move forward and how that will continue to accelerate
    innovation and manufacturing.
        Secretary Pritzker. Well, as for resiliency, our budget
    calls for expenditures at NOAA to provide resiliency products
    to states and local governments as well as to the private
    sector. There's enormous demand for products to understand what
    is happening with the rise of sea level, with drought, with
    different changes as a result of what's going on both with our
    weather as well as with our climate.
        In terms of NNMI, we have proposed in our budget that we
    will both create the network of the existing and to be planned
    manufacturing institutes which is called for in the Revitalize
    American Manufacturing and Innovation Act (RAMI) legislation
    that was passed at the end of last year. That's a $10 million
    budget item.
        And then we've asked for $70 million each for two different
    institutes that their unique characteristic would be from the
    other institutes--obviously, these remain institutes that bring
    together the private sector as well as all the various
    stakeholders, including universities and the community colleges
    and the supply chain. But these would be technologies chosen or
    proffered by the private sector as opposed to by government as
    the most technologies, would be the ones that we would want to
    focus on.
        Senator Coons. Terrific. Madam Secretary, thank you for
    your service and leadership. Mr. Chairman, thank you for your
    forbearance with my questions.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Shelby. Thank you, Senator. If there are no further
    questions, and I don't believe there are this morning, Senators
    may submit additional questions for the subcommittee's official
    hearing record, and we'd request a Department of Commerce
    response to those questions, if there are.
        Secretary Pritzker. Absolutely.
        Senator Shelby. Madam Secretary, thank you for appearing
    today before the subcommittee.
        Secretary Pritzker. Thank you.
        Senator Shelby. We look forward to working with you. And
    we've requested a lot of information, that I'm sure you will
    make sure it's forthcoming.
        Secretary Pritzker. Absolutely.
        Senator Shelby. Thank you.
        Secretary Pritzker. Mr. Chairman, thank you very much.
        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
                   Questions Submitted to Hon. Penny Pritzker
                Questions Submitted by Senator Richard C. Shelby
                                 cybersecurity
        Question. The Commerce, Justice, and Science (CJS) Subcommittee
    strongly supports and continues to prioritize cybersecurity initiatives
    at the Department of Commerce. However, despite the subcommittee
    providing funds for critical cybersecurity upgrades, the Inspector
    General has found persistent deficiencies that make the Department
    vulnerable to cyber-attacks.
        How would the Department's fiscal year 2016 budget request
    specifically address cybersecurity concerns outlined by the Department
    of Commerce Inspector General's written testimony to this subcommittee?
        Answer. The Department's fiscal year 2016 request supports concerns
    expressed by the Commerce Inspector General by:
      --Replacing outdated equipment and software tools with new software
            tools and more capable sensors on the Department's networks.
            These will be connected to the Commerce Computer Incident
            Response Team (DOC-CIRT) and computer security monitoring
            teams, resulting in enhanced detection and mitigation of cyber
            threats and vulnerabilities.
      --Adding watch officers and cyber forensic experts to our DOC-CIRT.
      --Adding skilled cyber contractor support for conducting the supply
            chain risk analyses mandated by Section 515 of Public Law 113-
            235.
      --Establishing the Department-wide trust identity management
            solution, which will increase the overall security posture of
            the Department's data and systems.
        Question. How would the fiscal year 2016 request help expedite and
    sustain Department-wide cybersecurity initiatives, such as the
    Enterprise Cybersecurity Monitoring and Operations (ECMO) and the
    Enterprise Security Oversight Center (ESOC) initiatives?
        Answer. The fiscal year 2016 request would accelerate the
    capability to provide relevant computer data feeds from Commerce
    Headquarters to the Enterprise Security Oversight Center (ESOC). The
    request additionally supports the ability to provide real-time access
    to the Enterprise Cybersecurity Monitoring and Operations (ECMO) data
    which provides the current cyber risk profile and status of Commerce
    information technology assets, both hardware and software.
        Commerce will continue to leverage the Department of Homeland
    Security's Continuous Diagnostics and Monitoring (CDM) program to
    deploy and integrate additional capabilities.
        Question. What cybersecurity deliverables can the Department
    highlight from fiscal year 2014 and fiscal year 2015, that best justify
    the top cybersecurity-related items included in the Department's fiscal
    year 2016 request?
        Answer. In fiscal year 2014, Commerce reached deployment of 85,564
    ECMO client systems and initiated the ESOC project. As of March 2015,
    ECMO client systems deployment has reached 92,202. The ESOC project is
    a joint venture established between the Commerce Office of the Chief
    Information Officer (OCIO) and the National Oceanic and Atmospheric
    Administration (NOAA). The ESOC began functional operations September
    2014 and led the Department's response to the Shellshock vulnerability.
        In Q4 fiscal year 2014, Commerce conducted the first set of supply
    chain risk assessments for acquisitions targeted for installation on
    Commerce owned and operated National Security Systems and Federal
    Information Security Information Management Act (FISMA) High-impact
    systems.
        In Q1 fiscal year 2015, the ESOC achieved initial operating
    capability by establishing basic security operations tools and network
    connectivity from our NOAA-partner site. This capability includes the
    ability to automatically share indicators of compromise across the
    Department and ability to ingest cyber security intelligence feeds into
    the ESOC security event information management system. The ESOC will be
    fully staffed in early Q3 and will begin 24x7 operations by the end of
    Q3 fiscal year 2015, significantly increasing the ability of the
    Department to rapidly detect and identify cyber security threats and
    incidents.
        Effective January 1, 2015, the Department implemented policy
    requiring all operating units to centrally report all cybersecurity
    incidents via the Commerce Computer Incident Response Team. Previously,
    several bureaus independently reported computer incidents to US-CERT.
    This previous policy left the Office of the Secretary unaware of some
    incidents.
        In February 2015, the Department reached 100 percent compliance in
    its implementation of Domain Name System Security Extensions (DNSSEC).
                                  noaa vessel
        Question. The Department proposed $147 million for construction of
    a new NOAA vessel in its fiscal year 2016 budget request. While I am
    concerned with the future of NOAA's fleetpotentially losing half
    between now and 2028, this subcommittee finds it difficult to justify
    supporting such a large capital expense without a plan from the
    administration to address the broader issue. In order to provide
    adequate and fiscally responsible funding for NOAA to update its fleet,
    this subcommittee needs the Department to provide context and a
    proposed path forward to ensure critical mission work, such as ocean
    floor mapping and fisheries management, is not put at risk.
        When will the administration be in a position to provide this
    subcommittee and Congress with NOAA's future fleet recapitalization
    requirements, including vessels that are planned to be taken out of
    service and vessels or technology planned for their replacement,
    similar to the information that was provided in the 2008 NOAA Ship
    Recapitalization Plan?
        Answer. The request in the fiscal year 2016 President's budget of
    $147 million for the construction of a new Ocean Survey Vessel (OSV) is
    based on a robust requirement validation and analysis process and
    supports several NOAA missions.
        NOAA also continues to work closely with the NOAA Fleet Advisory
    Committee, a group of external experts from other Federal agencies
    involved with the management of at-sea assets. Committee membership
    includes representation from the U.S. Navy, U.S. Coast Guard, National
    Science Foundation, Bureau of Ocean Energy Management, Environmental
    Protection Agency, and University-National Oceanographic Laboratory
    Systems.
        Per the Federal Oceanographic Fleet Status Report, released May
    2013 by the National Ocean Council, the Federal oceanographic fleet
    will experience a 50 percent decline in the number of active vessels by
    2026 without further modernization. Without an investment, NOAA
    estimates that its fleet will decline by 50 percent from 16 to 8 active
    ships between fiscal year 2016 and fiscal year 2028.
        NOAA is currently analyzing its current and future fleet
    capabilities to ensure that its mission critical priorities are
    addressed in the most cost-effective and efficient manner, and we will
    use this information to guide future fleet investments. This
    challenging but important exercise will help us develop the best path
    forward in support of core work such as ocean floor mapping and fishery
    management, and we will share some of the results of that exercise when
    they become available.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
                                 arctic policy
        Question. Last year, I began almost all budget hearing with a
    question on the Arctic, and I will be doing so again this year. In
    April, the U.S. assumes the chairmanship of the Arctic Council, and
    beyond the issue of climate change, it is not clear to me what our
    national strategy in the Arctic is. Searching through your budget
    documents, the term ``Arctic'' only appears a handful of times, and is
    mostly in reference to oil spill response and studying the effects of
    ``human-induced change on Arctic ecosystems.'' The Commerce
    Department's jurisdiction is so much broader than this, so I hope this
    is not all your department is doing in terms of Arctic policy.
        Please tell me what are the specific Arctic priorities of the
    Department of Commerce?
        Answer. The Administration's 2013 National Strategy for the Arctic
    Region (hereafter, Strategy) (https://www.whitehouse.gov/blog/2013/05/
    10/national-strategy-arctic-region-announced) and the priorities
    developed for U.S. Arctic Chairmanship of the Arctic Council are the
    latest statements of U.S. policy in the Arctic, and all actions by
    Department of Commerce agencies fit within the goals and tenets set
    forth in these documents. Within Commerce, NOAA is the primary agency
    that executes the priorities set forth in the strategy. To support the
    strategy and provide NOAA scientists, stakeholders, and partners a
    roadmap to make shared progress, NOAA developed the 2014 Arctic Action
    Plan (http://www.arctic.noaa.gov/NOAAarctic
    actionplan2014.pdf ).
        In support of the Strategy and the NOAA Action Plan, NOAA is
    working on:
      --filling gaps in Arctic weather/sea ice observations, forecasts and
            warnings;
      --improving understanding of climate impacts on biological resources;
            and
      --improving navigation services.
        Question. In your role as Secretary of Commerce, what are your
    directives to the agency in terms of Arctic policy?
        Answer. The Department of Commerce supports the National Strategy
    and our work in the Arctic region fits within that strategy to better
    position the United States to respond effectively to emerging
    opportunities while simultaneously pursuing efforts to protect and
    conserve this vast, valuable, and vulnerable region. Our work in the
    Arctic Region establishes the foundation for U.S. Arctic development in
    support of
      --advancing our security interests;
      --pursuing responsible Arctic region stewardship, and
      --strengthening international cooperation.
        Question. What, if any, focus does the agency have on better
    understanding the Arctic and growing our Arctic infrastructure?
        Answer. The Department, mainly through NOAA, is actively engaged in
    the Arctic, providing science, service, and stewardship to this rapidly
    changing region, its inhabitants, and the Nation. Through its broad
    range of activities, NOAA is well prepared to make significant
    contributions, to the extent possible within existing resources, to all
    three lines of effort in the national strategy.
        Advancing U.S. security interests in the Arctic requires improved
    maritime domain awareness for which NOAA's weather and sea ice
    forecasts are critically important. NOAA's sea ice research strengthens
    forecasts of both ice and weather conditions and improves understanding
    of the links between sea ice and climate. As a result of this research,
    the complicated linkages among melting sea ice, changing climate, and
    weather patterns in the Arctic and around the globe are becoming more
    apparent, allowing for better planning to cope with and capitalize on
    Arctic change.
        NOAA plays a key role in pursuing responsible Arctic region
    stewardship. Foundational science enables better understanding of
    Arctic ecosystems, the atmosphere, climate, and their dynamic
    interconnections. NOAA's fisheries research and management programs are
    likewise vital, particularly for the economically important U.S. Bering
    Sea fisheries. Research and stewardship of marine ecosystems and
    protected species like marine mammals promote sustainable use,
    conservation, and protection from potential impacts of offshore
    development, increased shipping, and environmental degradation. NOAA
    provides important services to coastal communities by improving safe
    Arctic maritime access with mapping and charting, as well as increasing
    preparedness and communities' resilience to intensifying weather. NOAA
    is also an important partner in hazard response and mitigation (e.g.,
    providing scientific support to the U.S. Coast Guard after oil spills).
    Research relevant to oil spills, sea ice, and marine ecosystems will
    help to prepare for and protect against potential environmental
    disasters in the Arctic.
        All of NOAA's Arctic activities are united in one aspect:
    leveraging national and international partnerships and collaborating to
    support common Arctic goals. NOAA works collaboratively through the
    Arctic Council on joint research opportunities, and provision of
    services. NOAA also has many successful Arctic national partnerships,
    within and outside the Federal Government. Existing partnerships will
    be strengthened and new ones developed in the coming years as NOAA
    continues its work to address the Nation's challenges in the Arctic.
        Specifically in terms of infrastructure, NOAA is engaged in the
    following:
      --assessing Arctic maritime infrastructure gaps in conjunction with
            the U.S. Committee on the Marine Transportation System;
      --the National Telecommunications and Information Administration's
            Arctic telecomm assessment; and
      --oil spill preparedness and response infrastructure enhancement
            efforts with the U.S. Coast Guard, the Bureau of Ocean Energy
            Management, the State of Alaska, and international partners.
                    national strategy for the arctic region
        Question. Within the Administration's Implementation Plan for its
    National Strategy for the Arctic Region, the Department of Commerce is
    identified as the lead agency for four programs: Develop Communication
    Infrastructure in the Arctic (National Telecommunications and
    Information Administration); Conserve Arctic ecosystems (NOAA);
    Implement the Pilot Distributed Biological Observatory in the Pacific
    Arctic (NOAA); and Chart the Arctic Region (NOAA). The Department is
    also designated as a support agency for a number of other projects.
        What funding is included in your fiscal year 2016 budget request
    for the programs for which Commerce has the lead, as well as any other
    Arctic-related programs within your purview?
        Answer. NOAA is the lead agency for three objectives in the NSAR
    Implementation Plan: Conserving Arctic Ecosystems, Implement the Pilot
    Distributed Biological Observatory in the Pacific Arctic, and Chart the
    Arctic Region. NOAA is a supporting organization for nearly two dozen
    objectives in the NSAR.
        Work on the associated activities with agency partners is
    progressing within existing resources. In 2016, NOAA estimates $110
    million, including reimbursable funding, to continue to provide and
    develop products and services in support of its Arctic strategic goals
    (this includes funding transferred to NOAA for research needed by
    external partners). The largest share of NOAA Arctic funding is
    directed to supporting Arctic region stewardship, with substantial
    investments also being made to advance U.S. security interests and
    partnerships.
        The fiscal year 2016 request proposes increases for
      --arctic spill preparedness ($1.3 million);
      --implementing a distributed biological observatory to detect climate
            and human-induced change on Arctic ecosystems ($0.9 million);
            and
      --supporting northward development of NOAA's Arctic Observing Network
            ($2.2 million).
                                  ringed seals
        Question. First, I would like to thank you for the work you have
    done and the efforts NOAA has made to work with Alaskans and fisherman
    on Stellar Sea Lion restrictions. This is an example of the agency and
    Alaskans working together and I hope we can continue this in the
    future. By the same token, I would like to bring to your attention to
    what is happening right now with the Ringed Seal. It is outrageous for
    NOAA to propose critical habitat for the Ringed Seal that stretches
    350,000 square miles, based on a 100 year weather prediction despite no
    sign of population decline and the Ringed Seal occupying its entire
    historical range. This proposed critical habitat will have very real
    impacts on the economic livelihood and survival of an entire region of
    Alaska, stretching from the border of Canada to the EEZ. The effects
    will span not only great distances, but through our State's fibers,
    from local recreation to subsistence lifestyles.
        Secretary Pritzker, how can you justify such action despite the
    overwhelming lack of evidence supporting it and how much is the Agency
    proposing to spend on this proposal, including implementation of any
    current or future proposed rulemaking?
        Answer. NOAA listed the Arctic subspecies of ringed seals as a
    threatened species under the Endangered Species Act (ESA), effective in
    February 2013. The primary threat to this species is the loss of
    suitable sea ice habitat, including ice with sufficient snow depth for
    the formation of lairs the seals use to give birth and nurse their
    pups. The best available scientific information indicates that the
    effects of habitat loss caused by climate change are likely to develop
    over the next 50 to 100 years.
        The ESA requires that NOAA designate critical habitat for listed
    species. NOAA's proposed rule to designate critical habitat identifies
    three physical and biological features that are essential to the
    conservation of Arctic ringed seals: sea ice suitable for the formation
    and maintenance of the lairs (snow caves) used for sheltering pups
    during whelping and nursing, sea ice suitable as a platform for basking
    and molting, and primary prey resources to support Arctic ringed seals
    (Arctic cod, saffron cod, shrimps, and amphipods).
        Arctic ringed seals have a wide geographic range and a broad patchy
    distribution. The sea ice they depend upon is spatially and temporally
    dynamic, changing throughout the months when sea ice is present. The
    area proposed for designation as critical habitat is large because NOAA
    did not have sufficient information to identify a smaller area, such as
    data on the distribution and relative abundance of ringed seals that
    might indicate habitat areas that contribute the most toward
    reproduction and pup survival. In the proposed rule NOAA solicited
    public comments on the areas to be identified as critical habitat and
    areas that should be considered for potential exclusion. NOAA is also
    having the proposal peer-reviewed by external scientists before we
    proceed with a final rule.
        The process of designating critical habitat for Arctic ringed seals
    will likely cost NOAA about $850,000 over the course of fiscal year
    2013-fiscal year 2016, including costs for staff time, required
    economic analysis, legal review, and public hearings.
        Section 10(e) of the ESA specifically provides for the taking of
    threatened or endangered species by Alaska Natives for subsistence
    purposes, providing such taking is not accomplished in a wasteful
    manner. Based on the numbers of subsistence harvested animals reported
    via the Ice Seal Committee (an Alaska Native co-management organization
    under the Marine Mammal Protection Act), the level of subsistence
    harvesting for Arctic ringed seals is not a concern for the population.
    Therefore, NOAA has not proposed and is not contemplating any
    restrictions on continued subsistence harvests by Alaska Natives.
        Question. Further, the agency has previously claimed that there
    would be no local subsistence impacts, where does this information come
    from and how can it be proven?
        Answer. See response above.
                  hydrographic charting & ocean survey vessel
        Question. Modern, accurate geospatial information is critical to
    producing high quality navigation charts, which are to navigation,
    public safety, infrastructure planning, and resource management. This
    is particularly important in Northwest Alaska and the Arctic, where
    increased maritime traffic in the Bering Straits region and in the
    Arctic underscore the need for current hydrographic information. In
    some areas, the ``state-of-the-art'' mapping information still relies
    on lead-line survey work conducted by Russian whalers in the 1800s
    while there are still huge gaps in modern charts in the waters off
    Northwest Alaska and the Bering Straits Region in U.S. Arctic waters.
    This creates unnecessary risks for mariners and local communities. With
    the increasing maritime traffic in the Bering Straits region and in the
    Arctic there is even more need for modern charts. There is an urgent
    need for updated charts, yet NOAA has indicated that it has an 85 year
    backlog for hydrographic surveys in Alaska.
        Secretary Pritzker, your agency plays a critical role in supporting
    hydrographic charting, including in the Arctic and Bering Straits
    Region. Last year we discussed hydrographic charting and what it means
    to my State and economic development in the Arctic. You'll recall that
    I asked you about your commitment to dedicating the necessary resources
    to conduct hydrographic surveys and prepare navigational charts
    adequate to address the increasing maritime traffic in these regions.
    In your answer, you stated that NOAA has developed a 5-year
    hydrographic survey plan to identify about 40,000 square nautical miles
    of critical area and address the most critical survey needs in Alaska.
    You also stated that NOAA planned to resume full Arctic operations in
    2015 under the President's budget request. What steps have been taken
    toward this 5-year plan, what Arctic operations have resumed, and what
    does full operations mean?
        Answer. NOAA continues to implement its 5-year hydrographic survey
    plan, which prioritizes and addresses the most critical survey needs in
    Alaska (and elsewhere). With the requested base resources in fiscal
    year 2016, NOAA plans to survey at least 500 square nautical miles in
    the Arctic, a continuation of the fiscal year 2015 resumption of full
    annual hydrographic survey operations. As a result of mechanical issues
    with the NOAA Ship Fairweather and budget uncertainties associated with
    the Government shutdown in October 2014, NOAA was forced to cancel many
    Arctic surveys planned for 2014. In fiscal year 2015 and beyond, NOAA
    plans to employ one surveying contractor and the NOAA survey vessels
    Rainier and Fairweather. In addition, the U.S. Coast Guard Cutter Healy
    will acquire depth measurements while transiting to evaluate
    requirements for future charting updates.
        Question. This year, you are requesting $147 million for
    construction of an ocean survey vessel. If this vessel is constructed,
    will it be built with the capabilities to operate in the Bering Sea and
    Arctic Ocean, helping to reduce the backlog of needed hydrographic
    surveys? If not, what are the Department's other plans for producing
    modern nautical charts in the Arctic?
        Answer. The requested Ocean Survey Vessel (OSV) will be tasked with
    operating in numerous challenging environments, many of which will be
    near U.S. borders and in the U.S. Exclusive Economic Zone (EEZ). The
    coastal areas are divided into four main regions, including: the
    Northeast, Southeast, Western, and Alaska. Additionally, the OSV will
    perform research in other regions within the design limitations of the
    vessel such as portions of the Arctic, Antarctic, and Pacific Islands,
    as well as within Marine Sanctuaries and Marine Protected Areas. The
    OSV is designed with the ability to map the ocean floor for updating
    nautical charts. In future years, NOAA will continue to acquire
    hydrographic survey data in the Arctic using a combination of NOAA's
    hydrographic survey ships and contractors.
                             electronic monitoring
        Question. At the Headquarters level, year after year it seems as if
    NOAA supports efforts to deliver cost-effective and sustainable
    electronic data collection solutions. The goal here is to validate the
    functionality of cameras, facilitate the collection of data, and
    improve the logistics of deploying electronic monitoring equipment on
    small fishing boats in Alaska. When I met with you last year you
    expressed an understanding of the importance of this issue in Alaska,
    and the potential for it to benefit fisheries around the Nation.
    However, efforts to make progress on the water in Alaska are hampered
    at the Regional level and I am concerned that the staff in the Alaska
    region are not working effectively. Further, despite continued promises
    by Headquarters staff, small boat fisherman are having serious problems
    receiving hardship waivers for lack of bunk space due to the observer
    program.
        Secretary Pritzker, can you commit to working with me to not only
    ensure that NOAA is dedicating the resources necessary to make progress
    toward the deployment of viable electronic monitoring technologies on
    vessels, like we agreed to do last year, but also to bridging the gaps
    between Headquarters and the Regional Offices on goals, plans, and
    actions?
        Answer. The fiscal year 2016 President's budget requests
    approximately $7 million to support further development of cost-
    effective, appropriate technologies for monitoring Federal fisheries.
    Of this amount, $5.6 million is requested within the Fisheries and
    Ecosystem Science Programs and Services for development, testing, and
    installation of electronic monitoring and reporting technologies across
    the country. The remaining $1.5 million is requested under the
    Fisheries Management and Programs and Services to expedite the use of
    appropriate electronic technologies.
        This past year, NOAA Fisheries developed a national policy on the
    implementation of electronic monitoring and reporting, with the intent
    to stimulate regional implementation of these systems. To this end, the
    Alaska Regional Office and Science Center have developed an Alaska
    Region Electronic Technologies Implementation Plan for initiatives that
    are currently being undertaken in Alaska. This plan has been endorsed
    by the North Pacific Fishery Management Council (Council) and shows how
    committed NOAA is to advancing electronic monitoring technology in
    Alaska fisheries. Indeed, NOAA is working with the National Fish and
    Wildlife Foundation to provide $4 million in fiscal year 2015 for
    national implementation of electronic monitoring and reporting. A
    significant portion of these funds are expected to go to Alaskan
    fisheries.
        As we move into implementation in Alaskan fisheries, we look to the
    Council's Electronic Monitoring workgroup for advice. This workgroup
    includes industry representatives as well as staff from the Council,
    the Pacific States Marine Fisheries Commission, and both NOAA
    Fisheries' Alaska Regional office and Alaska Fisheries Science Center.
    The workgroup was established so that industry, agency, and electronic
    monitoring service providers have a forum to cooperatively and
    collaboratively design, test, and develop electronic monitoring
    approaches that are consistent with Council goals and objectives to
    integrate electronic monitoring into the observer program.
        The Council's Electronic Monitoring workgroup has developed an
    Electronic Monitoring Cooperative Research and Implementation Program
    that describes analytical and fieldwork projects targeted for 2015 to
    address:
      --Deployment and operation testing of electronic monitoring systems
            on 12 vessels. Vessels participating in the electronic
            monitoring cooperative research are relieved of the requirement
            to carry an observer.
      --Research and development of electronic monitoring technologies.
      --Infrastructure to support electronic monitoring implementation.
      --Analyses to support electronic monitoring implementation decision
            points.
        This cooperative research in 2015 will collect information that
    will inform 2016 pre-implementation decisions by the Council and the
    Regional Office, assess the efficacy of electronic monitoring for catch
    accounting of retained and discarded catch, identify key decision
    points related to operationalizing and integrating electronic
    monitoring systems, and develop performance standards and operational
    requirements in regulations. Part of the discussion of 2016 pre-
    implementation in the small boat longline fleet will focus on vessels
    that have trouble carrying an observer.
        Finally, NOAA is working with the Council to integrate electronic
    monitoring tools into the Observer Program for the fixed gear small-
    boat groundfish and halibut fisheries (2015 Annual Deployment Plan for
    Observers). The intent is to develop electronic monitoring to collect
    data to be used in catch estimation for this fleet.
                      marine mammal deterrence guidelines
        Question. Alaskans are fishermen and fishermen must use some means
    of deterrence for marine mammals. On my most recent trip to Juneau, I
    met with the United Fishermen of Alaska who brought up concerns
    regarding NOAA publishing a Notice in the Federal Register of its
    Intent to Issue Guidelines with respect to marine mammal deterrence
    devices and techniques that are used by commercial fisherman. The
    details of what is happening have been hard to find and there has been
    very little information disseminated about reasoning or plans. This is
    concerning for Alaskan fisherman and I echo their concerns.
        On December 16th, this notice was published and the comment period
    just ended on January 15, 2015. What is the current state of these
    guidelines? Where do you see this process leading?
        Answer. The Marine Mammal Protection Act (MMPA) section 101(a)(4)
    provides an exception to the prohibition of take for fishermen to deter
    marine mammals for the purpose of protecting fishing gear and catch,
    provided the deterrent does not result in serious injury or mortality.
    NOAA received over 50 comments in response to our notice requesting
    information from the public on which non-lethal deterrents to evaluate
    and consider for approval pursuant to the Marine Mammal Protection Act.
    Several comments provided specific information on both acoustic and
    non-acoustic devices and techniques to safely deter seals, sea lions,
    whales, and dolphins. NOAA subsequently convened a technical expert
    workshop to review the devices/techniques submitted by the public.
    Nearly all scientific information currently available focuses on the
    effectiveness of the deterrent and not on a deterrent's impact to the
    marine mammal; however, the Marine Mammal Protection Act requires that
    any deterrents used not result in serious injury or mortality of marine
    mammals. Therefore, the experts (e.g., veterinarians, acousticians,
    marine mammal biologists) at the workshop evaluated the potential
    likelihood and severity of impacts to animals that could potentially
    result from a deterrent. NOAA will take the input from the workshop and
    develop guidelines for safely deterring marine mammals as well as
    specific measures for marine mammals under NOAA's jurisdiction,
    including those listed under the Endangered Species Act. These
    guidelines and specific measures will go out for public comment. NOAA
    anticipates publishing a proposed rule in early 2016.
                           fisheries finance program
        Question. The President's fiscal year 2016 budget request includes
    proposed language to authorize $100 million for fiscal year 2016 in
    direct loan authority for NOAA's Fisheries Finance Program (FFP)
    Account as authorized by the Merchant Marine Act. FFP loans have a
    negative subsidy rate and no appropriated funds are required. I have
    supporting the proposed language which I believe will increase
    opportunities for vessel owners to build and refinance new vessels and
    make major modifications to existing vessels to improve fishing vessel
    safety. These loans will help the fleet modernize and provide
    significant economic benefits to shipyards and support industries.
        Last year, you explained that the Advance Notice of Proposed
    Rulemaking was currently being developed to seek industry input and
    that the rulemaking process would be completed by the end of the year.
    Could you please update me on the ANPR and the status of FFP Loans?
        Answer. NMFS published its Advance Notice of Proposed Rulemaking
    (ANPR) on June 13, 2014, and received 10 comments from the public as
    well as an inquiry from the Government of New Zealand. NMFS is
    reviewing the comments consistent with the rulemaking process. NOAA
    Fisheries is still reviewing and considering its response to those
    comments. Although, the Spring 2015 Semiannual Agenda of Regulations
    identifies that the proposed rule will be issued in July 2015, the date
    will have to change pending completion of review of public comments on
    the ANPR.
                              ocean acidification
        Question. Integrated Ocean Acidification has seen increased funding
    from fiscal year 2014 to fiscal year 2016 to the tune of $24 million,
    leaving the fiscal year 2016 budget request at $30 million. This is
    much needed funding to address a very real issue facing our oceans,
    however, it is unclear how and where this money is distributed.
        My question to you, is how much of this increase will go towards
    Alaska and the Arctic?
        Answer. To date, NOAA research and monitoring within Alaskan and
    Arctic waters has fared comparatively well within the merit review
    system established by the Ocean Acidification Program (OAP). In fiscal
    year 2014, 34 percent of the total OAP directed research investments
    were devoted to investigating the effects of ocean acidification on
    Alaska fisheries, notably various king crab species.
        Given the geochemical setting and societal dependence on impacted
    species in the region, Alaska coastal waters have been identified as a
    potential `hot-spot' with respect to ocean acidification. This habitat
    naturally exhibits waters which are seasonally corrosive to shelled
    organisms and is undergoing rapid change in response to climate
    warming. The warming waters cause accelerated melting of glacial ice,
    which can further exacerbate corrosive conditions in the coastal waters
    off Alaska. As a result, the OAP perceives Alaska research and
    monitoring as a high priority to the program.
        Furthermore, an additional $2.5 million provided to the OAP within
    the Consolidated and Further Continuing Appropriations Act, 2015, has
    given the program the ability to increase its Alaska research and
    monitoring investments. OAP has also leveraged NOAA's fleet to: (1) to
    support the scientific work aboard the Gulf of Alaska Ocean
    Acidification cruise, the first of what NOAA hopes to repeat every 4
    years to monitor Alaska ocean acidification; (2) to adopt the long term
    maintenance of two OA moorings originally procured and maintained by
    the State of Alaska; and (3) to continue and enhance a multi-year,
    technology development project at the Alutiq Shellfish Pride Hatchery
    in Seward, Alaska. This last project was initiated in fiscal year 2014
    in collaboration with the Alaska Ocean Observing System (AOOS). For
    additional information on NOAA's OAP see: http://
    oceanacidification.noaa.gov/WhatsNew/OANews/
    TurningtheHighBeamsonOceanAcidification.aspx).
        Other significant OAP resources, while not exclusively funding
    Alaska research and monitoring, benefit those efforts. For example, in
    fiscal year 2015 the OAP will invest more than $1.1 million in data
    management, quality assurance, and advanced technology projects that
    provide direct capacity across all the OAP supported research and
    monitoring efforts, including those exclusively focused on Alaska
    waters.
        Alaska will also benefit from work that would be funded through the
    proposed increase of $21.4 million for OAP in the fiscal year 2016
    President's budget. Approximately 50 percent--$10 million--of the
    requested increase will close existing gaps within the Ocean
    Acidification monitoring network and fund biological research
    activities. Alaska will be eligible to apply for approximately $5
    million (about 25 percent of OAP funds) that is made available for
    competitive grants to establish a more efficient and effective
    monitoring system as a key element of the National Ocean Acidification
    Network (NOAN).
        Final fiscal year 2016 allocations for OAP directed research
    investments to Alaska and the Arctic will be determined through NOAA's
    competitive (merit) review process and the fiscal year 2016 enacted
    appropriations.
                               steller sea lions
        Question. NMFS is currently considering revisions to the critical
    habitat designation of the Steller Sea Lion under the Endangered
    Species Act. NMFS has indicated there should be a draft proposed rule
    released in August. Alaskans, especially in the fishing industry and
    affected communities, have expressed concern over the lack of
    transparency and peer review in the process. The North Pacific Fishery
    Management Council, in a letter dated October 28, 2014, made several
    recommendations to strengthen the science and improve the public
    process in this review.
        Do you agree with me that we should work to strengthen the
    scientific analyses, and improve the transparency and communication in
    this important review of Steller sea lion critical habitat? What steps
    will you take to address the Council recommendations to have 3rd party
    independent scientific peer review of the analyses, and provide
    enhanced opportunity for the Council and the public to review and
    comment on these analyses prior to the preparation of the proposed
    rule?
        Answer. NOAA Fisheries is pursuing appropriately rigorous
    scientific analyses and open communication to ensure that any revisions
    to Steller sea lion critical habitat are well supported and that
    stakeholders are well informed. For example, NOAA Fisheries is
    providing regular updates to stakeholders, including the North Pacific
    Fishery Management Council. We held two public meetings specifically to
    solicit information that we should consider during our review of
    Steller sea lion critical habitat an extra step that was not required
    by law, but helped to engage stakeholders. We have informed
    stakeholders that a proposed rule to revise critical habitat for
    Steller sea lions should be released by the end of 2015. We also intend
    to complete independent peer reviews of the biological report from the
    Critical Habitat Review Team and the economics report that will support
    our analysis under section 4(b)(2) of the Endangered Species Act. In
    response to a request from the North Pacific Fishery Management
    Council, we will complete those peer reviews before issuing a proposed
    rule, which will allow the public to consider (during the public
    comment period on the proposed rule) what the peer reviewers had to say
    and how NOAA Fisheries responded. We also plan to hold at least one
    public hearing during the comment period on the proposed rule.
                                     ______

                Questions Submitted by Senator Susan M. Collins
        Question. I would like to thank the Department and NOAA for
    supporting the Penobscot River Restoration project (over $20 million).
    I am told that this project has raised more private dollars than any
    other river restoration project in the country. Thanks to a partnership
    effort, we are on the cusp of completing what could be one of the
    largest and most successful fisheries restoration efforts in history.
        Across the Gulf of Maine, the restoration of the sea-run migratory
    fish species is essential to rebuilding a thriving ocean fishery and
    healthy river communities. The Penobscot River Restoration Agreement
    has three main components: the removal of the Great Works Dam, the
    removal of the Veazie Dam, and the construction of a bypass of the
    Howland Dam. The first two are complete; the third is pending. It is
    important that NOAA remain committed to seeing through the full
    implementation of the agreement. If NOAA is not able to commit to the
    Agreement, which includes the building of a fish bypass, the project
    will be incomplete and the fisheries benefits will not be maximized.
        Will you help to ensure that NOAA will work with the State of
    Maine, the communities along the Penobscot River, including the Town of
    Howland, the tribes, and the Penobscot Trust to ensure that the
    Agreement is fully implemented in a timely fashion?
        Answer. Yes, NOAA Fisheries is committed to working with the State
    of Maine, the communities along the Penobscot, and the Penobscot River
    Restoration Trust (Trust) in an effort to implement the agreement in a
    timely fashion. As you pointed out, we have committed substantial
    resources to this effort to date and will continue to work with the
    Trust to fully realize the restoration potential of our collective
    accomplishments. We remain committed to restoring access to important
    diadromous species habitats throughout the watershed, and to that end,
    we are working to improve fish passage at a number of different project
    sites in the basin with several other partners in the State including
    the Atlantic Salmon Federation, The Nature Conservancy and the
    Penobscot Indian Nation. In addition, in May 2014 NOAA announced the
    designation of the Penobscot River Watershed as a Habitat Focus Area
    (HFA) under the agency's Habitat Blueprint Initiative. This designation
    creates an opportunity for the agency to combine its fiscal and
    technical resources to comprehensively address fish passage needs in
    the watershed. Through the Habitat Focus Area designation, we are
    working with The Nature Conservancy and local communities to evaluate
    potential dam removal and fish passage projects in portions of the
    watershed.
        The construction of the Howland bypass is well underway and the
    Trust expects to complete the project by October 2015. It is our
    understanding that the Trust raised adequate funding to complete the
    construction of the bypass which allowed them to go forward with the
    project in late 2014. While NOAA Fisheries did not provide funding for
    this component of the project, our staff participated in engineering
    design review with the Trust and the U.S. Fish and Wildlife Service to
    provide technical advice for fish passage for diadromous species and to
    help ensure satisfactory compliance with Federal regulatory
    requirements.
        We look forward to working further with the Trust to enhance fish
    passage effectiveness and project reliability and to design an
    effective maintenance and monitoring plan. Diadromous fish monitoring
    will document the project's success and determine if improvements are
    needed to the bypass channel to ensure the long-term success of this
    project. As stewards of both the resources in the river and the public
    funding supporting this project, we are concerned about the unresolved
    ownership and long-term maintenance and monitoring plan.
        The fiscal year 2016 President's budget request includes an
    increase of $1.3 million for ESA Salmon, part of which is requested for
    Atlantic salmon. With this increased funding, we would be able to
    better support the Maine Department of Marine Resources field
    operations in each of three salmon recovery areas (including the
    Penobscot) enabling better monitoring of adult abundance and freshwater
    production. Additional funding would also be used to better support
    non-governmental organization (NGO) efforts to restore habitat in the
    Penobscot and other critical habitats of the Gulf of Maine Distinct
    Population Segment and to provide more seasonal staff to support salmon
    and diadromous fish passage operation oversight and studies. The new
    fish passage on the Penobscot River requires more seasonal staff to
    ensure salmon safety and sorting from the anticipated 500,000 to one
    million river herring as their populations respond to the dam removals.
    This increased funding will provide support for that essential
    monitoring.
        NOAA Fisheries anticipates publishing several Federal Funding
    Opportunities (FFO) later this year through our competitive Fisheries
    Habitat Restoration and Species Recovery grant programs. Funding
    provided through these Federal Funding Opportunities could support
    other high priority fish passage projects in the Penobscot watershed.
    The fiscal year 2016 President's budget also includes a request to
    substantially expand the Species Recovery Grant Program by $17 million
    potentially providing even more support for Atlantic salmon recovery.
        Question. Earlier this month, NOAA announced its proposal to expand
    the designated critical habitat for endangered North Atlantic right
    whales in the northwestern Atlantic Ocean. Currently, the area in New
    England is comprised of waters off the coast of Massachusetts,
    including Cape Cody Bay. NOAA's new proposal would greatly expand the
    designated critical habitat to include nearly the entire Gulf of Maine.
        I have heard from concerned fishermen and lobstermen in Maine who
    are still trying to understand the implications that this proposed
    expansion might have on their operations. According to NOAA, this
    proposed expansion does not include any new restrictions for commercial
    fishing operations or shipping lanes. It is my understanding, however,
    that NOAA has imposed more stringent fishing restrictions on the
    existing critical habitat. For example, the lobster fishery in Cape
    Cody Bay has been regulated far longer than any other trap fishery, and
    the agency's recent rules regulating vertical lines included the
    closure of Cape Cody Bay to lobster fishing during the winter.
        Will additional restrictions be imposed on commercial fishing
    operations in the Gulf of Maine should NOAA's proposal be implemented?
        Answer. No. The proposed critical habitat will not result in any
    additional fishing restrictions. The fishing gear restrictions in place
    in the former Cape Cod Bay and Great South Channel critical habitat
    areas were implemented to prevent the take of large whales, including
    the North Atlantic right whale, not to protect the essential features
    of right whale critical habitat. Those measures were implemented under
    the Atlantic Large Whale Take Reduction Plan through the Marine Mammal
    Protection Act to address fishing interactions with large whales in
    those areas during specified times.
        The preamble of the proposed rule to revise critical habitat for
    right whales under the Endangered Species Act states that additional
    fishing gear regulations will not be imposed within the proposed right
    whale critical habitat expansion within the Gulf of Maine or Georges
    Bank areas. The proposed rule and 4(b)(2) Impact Analysis explicitly
    state that we have concluded that current fishing practices, with the
    exception of a possible future fishery targeting copepods, will not
    affect the essential features of foraging habitat and therefore do not
    affect critical habitat.
        Question. For years, China has manipulated its currency to provide
    its companies with an unfair trade advantage a problem that has not
    been sufficiently addressed by the U.S. Government. In Maine, China's
    currency manipulation has devastated communities that rely upon paper
    production. Since 2000, Maine has lost nearly half of its jobs in the
    paper manufacturing industry, and in the past year alone, three Maine
    mills have closed their doors and left hundreds of workers suddenly
    unemployed. Other mills may be subjected to a temporary shut down or
    reduction in operations, leaving workers with their jobs, but without a
    steady paycheck. This uncertainty and upheaval causes lasting damage to
    communities.
        Earlier this month, I joined a bipartisan group of colleagues, led
    by Senator Sessions and Senator Brown, in introducing the Currency
    Undervaluation Investigation Act, which would apply the countervailing
    duty law to currency manipulation practices and hold foreign countries
    accountable for these practices.
        How will you ensure that those harmed by currency manipulation can
    have their concerns addressed by the Department of Commerce?
        Answer. The issue of currency manipulation or undervaluation is a
    very important one; the President has made clear that it is
    inappropriate for any country to try to grow its exports by actively
    maintaining an undervalued exchange rate. While the authority to
    monitor and report on currency manipulation rests with the Department
    of the Treasury, Commerce separately has the authority under the U.S.
    countervailing duty law to investigate an allegation that foreign
    producers may be benefitting from unfair subsidies conveyed through a
    foreign government's currency practices, provided the allegation meets
    the requirements for initiating an investigation under the U.S.
    countervailing duty law. A currency-related countervailable subsidy
    allegation made by a petitioning U.S. industry is examined by Commerce
    based on the initiation requirements of U.S. law. If those requirements
    are met, Commerce would initiate an investigation of the allegation. We
    recognize that various bills with currency provisions pertaining to
    countervailing duty proceedings are currently before the Congress.
    Regardless of the ultimate disposition of the proposed legislation,
    Commerce remains committed to vigorously enforcing the trade remedy
    laws to ensure that U.S. companies and workers have every opportunity
    to compete on a level playing field.
        Question. Last September, NOAA's systems were breached in a cyber
    attack leading to some loss of weather data and delays in satellite
    data transmissions. Representative Frank Wolf said he was told that the
    Chinese may have been behind the attack. Commerce Inspector General
    Todd Zinser's testimony for today expresses serious concerns with
    Commerce's incident detection and response capabilities. This testimony
    follows the IG's previous findings before the cyber attack that founds
    ``significant security deficiencies'' in the National Environmental
    Satellite Data and Information Service that pose a ``risk in its
    national critical mission.''
        Can you describe what vulnerabilities led to the breach of NOAA's
    information systems, and have those vulnerabilities been addressed?
        Answer. Last fall, vulnerabilities in three public facing Web sites
    allowed attackers to compromise some NOAA systems. This incident, which
    started in September, was contained quickly and the specific Web
    application vulnerabilities have been fully addressed. A report
    describing these vulnerabilities and the mitigations is under review to
    determine if the report contains classified materials, so NOAA is
    unable to provide additional details in this answer. However, NOAA can
    say that the actual effects of the breach were limited. However, taking
    the affected networks offline to contain the attack did result in
    extensive Web site and data flow outages. In response to the identified
    shortcomings, NOAA has vigorously worked to correct cybersecurity flaws
    and continues to incorporate enhanced security as it modernized
    existing and designs and implements new systems. Nothing can completely
    protect an organization from all malicious cyberattacks, but following
    this course of action will improve the security posture of NOAA's Web
    sites and IT systems and help ensure that NOAA can continue to perform
    its critical missions.
        Question. The trade enforcement role of the Commerce Department and
    other trade agencies is very important for U.S. industries across the
    United States. I would note that the U.S. Trade Representative's Office
    has recently been addressing a concern related to a Moroccan export
    quota on goods that are critical to a manufacturer located in Maine. I
    appreciate the efforts being undertaken to make sure our trading
    partners are living up to their free trade agreement commitments, as
    this will ultimately make the difference in ensuring that trade
    agreements result in benefits to U.S.-based employers and workers.
        How extensively is the Commerce Department coordinating with USTR
    and other agencies to ensure trade agreement compliance?
        Answer. Ensuring that our trading partners live up to their trade
    agreement commitments is critical to the success of U.S. exporters and
    investors, and to the integrity of those agreements. When U.S.
    businesses sell abroad, the Department of Commerce works to ensure that
    they are able to do on a level, competitive playing field. The Commerce
    Department's Trade Agreements Compliance Program systematically
    monitors and investigates foreign compliance with over 250
    international trade agreements.
        Commerce proactively monitors trade agreement compliance and helps
    ensure U.S. business compete on a level playing field by identifying,
    investigating and resolving trade barriers. There is no cost to U.S.
    businesses for this service. Once a barrier is identified, Commerce
    assembles a case team to investigate the problem and develop a strategy
    to address it. This process includes coordinating interagency efforts
    on both an informal basis and formally through the interagency
    Compliance Task Force and the Trade Policy Staff subcommittees chaired
    by USTR. In taking action, Commerce teams can gradually escalate trade
    issues and, as appropriate, bring the full weight of the U.S Government
    to bear in an effort to resolve the issues, using relevant trade
    agreements, multilateral/WTO fora, Free Trade Agreement negotiations
    and other diplomatic means.
        As appropriate, cases identified by Commerce may also be referred
    to USTR and the interagency for formal dispute settlement action
    consideration. Commerce works particularly close with USTR in defending
    the rights of U.S. workers and manufacturers under World Trade
    Organization (WTO) trade remedy rules and challenging foreign
    countries' use of trade remedies when they violate WTO rules and
    present a barrier to fair competition from U.S.-produced goods.
                                     ______

                  Questions Submitted by Senator John Boozman
        Question. First, I want to thank you for your hard work and the
    constructive role you played in resolving the crisis we faced during
    the West Coast port slowdown. For Arkansas farmers, businessmen and
    women, this really was a serious crisis where a lot of people were
    harmed by the slowdown.
        When this type of situation occurs again, how could this issue be
    resolved much more quickly so that it does not cause so much economic
    damage to the country?
        Answer. The negotiations over the functioning of the West Coast
    Ports had been taking place for months with the administration urging
    the parties to resolve their differences. Helping resolve this dispute
    was a top priority, and on February 14, 2015, the President directed
    me, Secretary Perez, and Secretary Foxx to travel to California to meet
    with the parties to help them reach a resolution.
        On February 20, 2015, both parties reached a settlement and agreed
    to fully restore all port operations starting the following evening.
    This is great news for the parties involved in the negotiation and a
    huge relief for our economy particularly the countless American
    workers, farmers, and businesses that have been affected by the dispute
    and those facing even greater disruption and costs with further delays.
        President Obama has called on the parties to work together to clear
    out the backlogs and congestion in the West Coast Ports. We remain
    ready to help both sides on the West Coast to work together towards
    this goal. We are also ready to provide similar assistance in future
    seaport contract negotiations on the West Coast and at other U.S.
    seaports.
        Question. I am sure you agree that oversight at the agencies is
    necessary and an important and worthy goal. Therefore, I am concerned
    and disappointed that the OIG is experiencing difficulties accessing
    information needed to investigate and has faced threats not to release
    reports publicly.
        What are you personally doing to ensure this does not continue and
    do you agree that the IG should have access to the information they
    need to conduct appropriate oversight?
        Answer. I take compliance and oversight very seriously, and deeply
    appreciate the critical role Inspector General's Offices play in
    improving management and preventing waste and abuse in the Government.
    I am fully committed to working cooperatively with the Department's
    Inspector General on his oversight work and, as the IG Act requires,
    providing full and open access to information the Inspector General
    needs to do his job. As the Inspector General acknowledged in his
    testimony before this subcommittee, when issues arose regarding the
    Inspector General Office's access to monthly Program Management Council
    meetings for the weather satellite program, I stepped in to ensure that
    the Inspector General had the access that he needed. I will continue to
    take such actions as necessary to ensure that the Inspector General has
    the legally required access to information he needs to conduct his
    oversight work.
        Question. I am concerned with the OIG's cybersecurity findings.
    While the IG identifies actions that the Department has taken to
    strengthen cybersecurity, more needs to be done to protect IT systems
    and information. A recent FISMA audit revealed ``significant security
    deficiencies'' in the NOAA high-impact systems and identified
    weaknesses in the Department's incident detection and response
    capabilities.
        Are you taking these findings seriously and will you follow-up on
    the IG's recommendations?
        Answer. The CIO is taking the OIG findings, plus his own internal
    findings, very seriously. The CIO reports on the Department's cyber
    risk profile, using the NIST cyber framework, on a monthly basis to the
    Secretary and Deputy Secretary, and updates the Department's Executive
    Management Team members on the status of their Bureau on a regular
    basis.
        Our fiscal year 2016 request specifically addresses the
    Department's plan to improve incident response. We have requested an
    additional 2 full-time equivalents (FTEs) and funding to address
    directly the OIG findings and the results of third party assessments.
    We have requested additional information security FTEs to enhance our
    ability to perform security and cyber risk assessments. We are
    currently improving our capabilities through the addition of the ESOC
    capabilities, centralized reporting of computer incidents, and the
    hiring of additional incident response staff to include a digital
    forensics analyst. The primary focus for the Office of Cyber Security
    is shifting from a risk averse policy/compliance mindset to cyber
    operations/risk management mindset.
        Question. Access to broadband is vital to economic development and
    is a real issue for rural States like Arkansas.
        Can you talk about how the fiscal year 2016 budget request supports
    this goal and what concrete steps the agency will take to expand
    Internet access, especially in rural areas?
        Answer. The Department is committed to building on our broadband
    expertise to enable more communities to harness the power of broadband
    for social and economic opportunity. The BroadbandUSA initiative
    outlined in the President's budget will help more American communities,
    including rural areas, expand broadband by leveraging the experience
    and expertise of the Department's National Telecommunications and
    Information Administration (NTIA).
        Through its Broadband Technology Opportunities Program (BTOP), NTIA
    invested more than $4 billion in projects across the country to deploy
    broadband networks, expand public access to broadband, and train
    Americans in the use of computers and the Internet. BTOP projects have
    delivered over 110,000 miles of broadband networks; connected more than
    25,000 schools, libraries, and healthcare facilities to broadband;
    deployed more than 46,000 computer workstations across the Nation; and
    generated more than 650,000 new household broadband subscribers through
    education and training. But these benefits do not meet the tremendous
    demand for increased broadband that we know exists in America today.
        As we close out the few remaining broadband grant projects, we are
    implementing the new BroadbandUSA initiative to help more communities
    in rural and other disadvantaged areas expand broadband opportunities.
        The goal is to share lessons learned and best practices with
    community leaders, businesses, and others working on the front lines to
    close the digital divide. We plan to employ toolkits, training
    programs, workshops and other strategies for communities working to
    expand their broadband capabilities. For example, in February 2015,
    NTIA hosted a workshop in Jackson, Mississippi, that brought together
    leaders from small and large communities with businesses throughout the
    Gulf region to share lessons learned and strategies to help expand
    broadband.
        We also intend to work with other Federal agencies whose programs
    can benefit from broadband expertise, and look for opportunities to
    maximize the impact agencies have on expanding broadband access and
    adoption. The Broadband Opportunity Council recently announced by the
    President will be co-chaired by the Department of Commerce and will
    bring Federal agencies together to help identify steps to reduce
    barriers to broadband deployment.
        As evidence of the progress that we have made, NTIA recently
    announced that the United States has met President Obama's goal of
    ensuring 98 percent of the country has access to wireless broadband at
    a speed of at least 6 megabits per second (Mbps) down/1.5 Mbps up.
        It is also important to note the NTIA's progress towards
    identifying 500 MHz of spectrum for commercial use by 2020 is also
    making a tremendous difference in the wireless broadband availability
    and speeds in rural and other underserved areas of the United States.
        The Department is very committed to helping expand broadband
    opportunities for rural and other underserved areas.
                                     ______

              Questions Submitted by Senator Shelley Moore Capito
        Question. As the grants from the BTOP program are spent down, does
    the NTIA have any programs or plans to analyze those areas which are
    still underserved, such as in West Virginia?
        Answer. There are a number of ways in which NTIA is working to
    deliver benefits to underserved areas of the United States.
        Since 2009, NTIA and the FCC have collaborated on the development
    of the National Broadband Map, http://www.broadbandmap.gov/, which
    provides detailed data on broadband availability in the United States.
    The broadband map has become a vital tool for consumers, businesses,
    policy makers and researchers by providing an easy to use and
    searchable way to find out who is offering broadband, what types of
    broadband they are offering and where are they providing it. This tool
    is especially valuable for rural areas that are looking to develop
    strategies to expand broadband in their community. We are in the
    process of transitioning the responsibility for continuing the data
    collection and updates to the Map to the FCC due to budget constraints.
        Through NTIA's State Broadband Initiative, we also funded capacity-
    building efforts at the State level. Partly as a result, the State of
    West Virginia recently released a Broadband Strategic Plan (http://
    www.wvgs.wvnet.edu/bb/reports.php) identifying goals and targets for
    additional broadband investment that will help fill the gaps in the
    State's broadband infrastructure.
        Additionally, NTIA's Office of Policy Analysis and Development will
    continue to analyze the status of the ``digital divide'' and the use of
    broadband technologies, including deployment and adoption in rural
    areas. This work, begun in 1994, has resulted in a series of detailed
    reports based on data from the Census Bureau's Current Population
    Surveys and American Community Surveys.
        The BroadbandUSA initiative outlined in the President's budget will
    help more American communities expand broadband access and adoption by
    leveraging the experiences and expertise of the NTIA.
        Through its Broadband Technology Opportunities Program (BTOP), NTIA
    invested more than $4 billion in projects across the country to deploy
    broadband networks, expand public access to broadband, and train
    Americans in the use of computer and the Internet. BTOP projects have
    delivered over 110,000 miles of broadband networks; connected more than
    25,000 schools, libraries, and healthcare facilities to broadband;
    deployed more than 46,000 computer workstations across the Nation; and
    generated more than 650,000 new broadband subscribers through education
    and training. But these benefits do not meet the tremendous demand for
    increased broadband that we know exists in America today.
        Question. What initiatives or investments can be made to provide
    service to those areas?
        Answer. As we close out the few remaining broadband grant projects,
    we are implementing the new BroadbandUSA initiative to leverage our
    expertise and help more communities expand broadband opportunities. The
    goal is to share lessons learned and best practices with community
    leaders, businesses, and others on the front lines of working to close
    the digital divide. We plan to employ toolkits, training programs,
    workshops and other strategies to communities working to expand their
    broadband capabilities. We are working with other Federal agencies
    whose programs could benefit from broadband expertise, and look for
    ways to maximize the impact agencies have on expanding broadband access
    and adoption.
        The Department is committed to building on our experience with BTOP
    to enable more communities to harness the power of broadband for social
    and economic opportunity.
        The Broadband Opportunity Council, recently announced by the
    President, will be co-chaired by the Department of Commerce and will
    bring Federal agencies together to help identify steps to reduce
    barriers to broadband deployment and adoption.
        In addition to our work, the U.S. Department of Agriculture's Rural
    Utilities Service continues to invest in broadband infrastructure
    projects, and the Federal Communications Commission is updating the
    Universal Service Fund to better target investments toward broadband
    for rural and other underserved areas.
        Question. Could you please provide an overview of the mission of
    the recently formed BroadbandUSA within your department specifically
    mindful of communities in areas such as rural West Virginia that are
    still lacking in adequate broadband access?
        Answer. As described above, the BroadbandUSA initiative builds upon
    the lessons learned from our successful BTOP and leverages our
    expertise to help more communities expand broadband access and
    adoption. The goal is to share lessons learned and best practices with
    community leaders, businesses, and others on the front lines of working
    to close the digital divide. We also intend to work with other Federal
    agencies whose programs could benefit from broadband expertise, and
    look for ways to maximize the impact agencies have on expanding
    broadband access and adoption.
        NTIA understands that many States such as West Virginia demonstrate
    significant need for additional broadband infrastructure and adoption
    resources. Technical assistance will be directed toward areas of
    greatest need, including rural and tribal areas. As we continue to
    develop and implement this important program, we will focus our efforts
    to improve the broadband capabilities in areas with demonstrated need,
    such as West Virginia.
        Question. How do you gauge success for the BTOP program regarding
    access in rural areas?
        Answer. Whereas the complementary Broadband Initiatives Program
    implemented by the U.S. Department of Agriculture Rural Utilities
    Service was intended to specifically focus on rural areas, Congress
    instructed NTIA to address the unmet broadband needs of ``unserved and
    underserved'' areas through the BTOP program.
        Many of the more than 230 projects funded by NTIA delivered
    broadband infrastructure, computers, and training to rural areas. For
    example, the $126 million infrastructure grant to the State of West
    Virginia deployed new or upgraded broadband capabilities to nearly
    every school in West Virginia, including those in some of the most
    rural areas of the State. The nearly $2 million public computer center
    grant to WorkForce West Virginia improved broadband at 95 workforce
    centers, libraries and Veterans Affairs facilities in rural communities
    such as Buckhannon and Durbin. The $4.4 million broadband adoption
    grant to Future Generations Graduate School provided computer training
    and access through local fire stations and helped more than 30,000 West
    Virginia households become broadband subscribers.
        Question. What lessons have you learned that could help Federal/
    State/local governments in expanding access in the future?
        Answer. The Department's NTIA is committed to helping stakeholders
    at the Federal, State, and local level in expanding broadband access
    and adoption. The recently launched BroadbandUSA initiative described
    above will be integral to achieving this goal. By leveraging lessons
    learned from the successful BTOP program and sharing best practices
    among private and public stakeholders, NTIA will assist more
    communities with their goals of expanding broadband opportunities.
        NTIA has already identified a number of lessons learned that can
    assist leaders at the Federal, State, and local level. In January 2015,
    NTIA released a Public Private Partnership primer, which provides a
    basic introduction to a variety of partnership models for communities
    considering new broadband projects. The primer provides a high-level
    overview of steps to establish partnerships, and presents case studies
    of successful public-private broadband partnerships. This document is
    available at: http://www.ntia.doc.gov/report/2015/broadbandusa-
    introduction-effective-public-private-partnerships.
        Question. How do you view your continuing role in providing access
    in rural areas?
        Answer. Building on the primer, we are working on a series of
    guides to assist communities that want to increase the level of
    broadband infrastructure and adoption in their areas. These will
    provide solid and field-tested advice on how to plan for network
    development, create useful applications and build projects that will
    sustain themselves for years to come.
        Another way we are helping communities is through our broadband
    adoption toolkit, published in 2013, that serves as a reference manual
    for municipalities and other organizations that want to increase the
    level of adoption in their communities. The toolkit contains clear,
    sensible advice, as well as practical ideas and tips for bringing a
    wide array of individuals online from senior citizens who may never
    have touched a mouse before to minority populations who might not even
    speak English. See http://www.ntia.doc.gov/toolkit.
        Additionally, the recently announced Broadband Opportunity Council,
    established in a March 2015 Presidential Memorandum, will collect
    recommendations from 25 Cabinet agencies about how to promote broadband
    deployment and adoption within the context of existing programs.
        The BroadbandUSA initiative described in greater detail above
    represents the Department's priority effort for expanding broadband
    access and adoption in the United States.
        Question. In those rural areas that expanded broadband under BTOP,
    what was the impact on unemployment, wages, and number of new jobs?
        Answer. BTOP projects have demonstrated a significant positive
    impact on jobs and economic development in the communities they served,
    with benefits that far surpass the taxpayer investments.
        In January, 2015, NTIA released an independent research study
    showing that its broadband grants program resulted in billions of
    dollars in economic benefits to the communities served, including
    increased economic output and higher levels of employment. The 4-year
    study, prepared by the research firm ASR Analytics, examined the social
    and economic impacts of the $4 billion in Recovery Act grants awarded
    by NTIA. In communities where grantees built new broadband
    infrastructure, broadband availability grew by an estimated 2 percent
    more than in communities not served by a broadband grantee. That growth
    could be expected to translate into increased economic output of as
    much as $21 billion annually, the report concluded.
        ASR Analytics' final report summarizes and synthesizes the findings
    of 42 separate case study reports, two interim reports, and a short-
    term economic impacts report. Key findings of ASR's final report
    include:
      --On average, in only 2 years, BTOP grant communities experienced an
            estimated 2 percent greater growth in broadband availability
            than non-grant communities, which is estimated to generate
            increased annual economic activity of between $5.17 billion and
            $21 billion.
      --The additional broadband infrastructure provided by BTOP could be
            expected to create more than 22,000 long-term jobs and generate
            more than $1 billion in additional household income each year.
      --Community anchor institutions, like schools and libraries, served
            by BTOP infrastructure grantees in the sample experienced
            significantly increased speeds and lower costs. As an example,
            the median price paid by libraries in the sample was $233
            megabits-per-second (mbps)/month before BTOP, at a median speed
            of 3 mbps. As a result of the grant, the median price dropped
            to $15 mbps/month and median speed increased to 20 mbps.
        For more information, please see: http://www.ntia.doc.gov/press-
    release/2015/research-study-shows-ntia-broadband-grants-provided-
    billions-economic-benefits.
                                     ______

                 Questions Submitted by Senator James Lankford
        Question. The foreign affairs exception to the Administrative
    Procedure Act is only for those ``affairs'' which so affect relations
    with other governments that the public rule making provisions would
    clearly provoke definitely undesirable international consequences.
        Given that the United States has not had formal diplomatic
    relations with Cuba since 1961, how would providing notice and comments
    provoke definitely undesirable international consequences? The
    precedent this action could have on future issues pertaining to foreign
    policy as particularly concerning. Was it the expectation of Commerce
    that the status quo foreign policy related to Cuba would imminently
    provoke undesirable international consequences? If so, what are the
    consequences?
        Answer. The Administrative Procedure Act's (APA) legislative
    history confirms that rulemakings that ``provoke definitely undesirable
    international consequences'' would clearly fall within the exemption;
    however the legislative history makes it clear that this is merely an
    example of the type of actions that would qualify for the exemption.
    Case law confirms that the phrase ``provoke definitely undesirable
    international consequences'' is only an illustration and is not meant
    to be an exclusive definition of ``foreign affairs function.'' See,
    e.g., New York v. Permanent Mission of India to the United Nations, 618
    F.3d 172, 202 (2d Cir. 2010) (finding that quintessential foreign
    affairs functions such as diplomatic relations and the regulation of
    foreign missions clearly and directly involve a foreign affairs
    function, and declining to turn the phrase ``provoke definitely
    undesirable international consequences'' from an illustration appearing
    in the APA's legislative history into the exclusive definition for
    ``foreign affairs function''). Thus, ``undesirable international
    consequences'' is not the only basis for publishing rules involving
    foreign affairs without public notice and comment and Commerce's rule
    promptly implementing the President's change in foreign policy towards
    Cuba did not require public notice and comment.
        Question. What assurances will NTIA provide to Congress that if the
    Internet DNS governance is transitioned to another entity that it will
    not next transition to a nation or entity that is hostile to free
    speech and religion?
        Answer. I appreciate your concern about foreign nations exerting
    control over the Internet domain name system. I assure you that nothing
    about the proposed transition of the role of the National
    Telecommunications and Information Administration (NTIA) in the domain
    name system will increase the likelihood or ability of foreign
    governments to exert greater control. Indeed, a main driver behind the
    IANA transition is to strengthen the multistakeholder process, thereby
    decreasing the likelihood of and opportunity for repressive regimes to
    exercise control over the domain name system at a global level. Moving
    forward to complete the privatization planned in the 1990's is our best
    response to recent calls from around the globe for greater control of
    the Internet by intergovernmental bodies like the United Nations.
        It is important to understand that no single entity including the
    U.S. Government--controls the domain name system or the Internet today.
    The Internet is governed through the bottom-up, consensus-based
    multistakeholder model in which private industry, engineers, civil
    society, and governments work together to develop policies. The
    proposed transition of NTIA's limited role is fully consistent with
    this multistakeholder model and will only strengthen the model against
    capture by anyone, including foreign governments. For this reason, the
    proposed transition has widespread support from Internet stakeholders,
    including AT&T, Verizon, Microsoft, Google, human rights groups, and
    the U.S. Chamber of Commerce.
        Moreover, in addition to a transition plan, Internet stakeholders
    are working on a proposal to enhance ICANN's future accountability. We
    expect the proposal to include the ``stress testing'' of solutions to
    safeguard against future contingencies, such as attempts to influence
    or take over ICANN. As we have stated publicly, the Department will not
    approve a proposal that would allow our role to be replaced by a
    government or intergovernmental organization. We will continue to keep
    Congress apprised of any developments through quarterly reports, which
    NTIA will supplement with additional information as appropriate.
        Question. What steps have been taken to implement the reforms
    required in the 2012 authorization of the Export-Import Bank?
        Answer. The Export-Import Bank of the United States (Ex-Im Bank)
    equips U.S. businesses with the financing tools they need to tackle new
    markets for their goods and services and to expand and create U.S.
    jobs. Last year, Ex-Im supported $27.4 billion of exports and 164,000
    American jobs at no cost to American taxpayers, with nearly 90 percent
    of Ex-Im Bank's transactions directly supporting small businesses. All
    of the reforms required by the bipartisan 2012 Ex-Im Bank
    reauthorization bill have been completed and implemented. Please see on
    the next two pages the section-by-section analysis provided by Ex-Im
    Bank. For further information, I recommend that you contact Ex-Im Bank
    management directly.
     export-import bank reauthorization act of 2012: every reform completed
                          section-by-section analysis

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Question. Regarding product promotion overseas, which product
    groups do not have the ability to promote their products on the
    international marketplace?
        Answer. The International Trade Administration (ITA), with its
    country- and industry-specific expertise along with a global network
    across the United States and around the world, plays a unique role in
    addressing barriers to broadening and deepening the U.S. exporter base.
    This includes: (1) Providing market- and industry-specific information
    where it would not otherwise be available at an affordable cost,
    particularly for small and medium-sized businesses; (2) Facilitating
    business opportunities by connecting qualified foreign buyers with U.S.
    suppliers; (3) Strengthening the social networks and institutions which
    underpin private sector activity in trade and investment, especially in
    culturally distant markets; and (4) Helping businesses overcome
    barriers to market access, including through political and diplomatic
    support.
        As part of ITA, Global Markets assists and advocates for U.S.
    businesses in international markets to foster U.S. economic prosperity.
    Utilizing our network of trade promotion and policy professionals
    located in over 70 countries and 100 U.S. locations, Global Markets
    promotes U.S. exports, especially among small and medium-sized
    enterprises; advances and protects U.S. commercial interests overseas;
    and attracts inward investment into the United States.
        Global Markets has a Federal Government presence both across the
    United States and in countries that represent 91 percent of worldwide
    GDP with authoritative, impartial, accessible professionals who have
    specific trade and investment expertise. As trusted intermediaries with
    extensive public and private sector contacts, credibility and influence
    in foreign markets, Global Markets effectively assists U.S. businesses
    and partners in entering and expanding international markets,
    addressing barriers to accessing foreign markets, winning foreign
    government procurements and attracting inward investment.
        Global Markets places a primary emphasis on promoting the exports
    of small and medium-sized enterprises (SMEs). SMEs face internal and
    external barriers that inhibit their ability to access the information
    and contacts needed to fulfill their export potential. Over 80 percent
    of U.S. export value is attributable to less than 10 percent of U.S.
    exporters, which are predominately large companies with exports to more
    than 10 markets. The majority of SME exporters only export to one
    market and do not export in consecutive years. Global Markets is
    focused on helping SMEs overcome the internal and external barriers to
    exporting so that more SMEs export to multiple markets and do so on an
    ongoing basis.
        Finally, Global Markets promotes all product and service groups.
    Regarding which product groups are not able to be promoted in the
    international market place, in accordance with the U.S. and Foreign
    Commercial Service's fiscal year 2011 Fee-Based Services Eligibility
    Policy and the Consolidation Appropriations Act of 2010, USFCS is
    prohibited by law from promoting the export of tobacco or tobacco-
    related products and policy restricts export promotion concerning
    munitions or sexually explicit material. Additionally, local laws and
    regulations in all markets can further complicate or even prohibit the
    ability to promote certain product groups in the international market
    place (i.e. alcohol, chemicals or weapons).
        Question. If the State Department is not part of the President's
    new proposed trade department, do you expect that trade policy
    objectives, such as ensuring that our trade partners respect human
    rights and religious freedom, will be assumed by the new department or
    remain part of the State Department?
        Answer. The President is asking Congress to give him the authority
    to submit to Congress for expedited consideration proposals to
    consolidate executive branch agencies so long as the result would be to
    reduce the number of Government agencies or cut costs. If he were
    granted such authority, the President has put forward a proposal that
    would consolidate six primary business and trade agencies, as well as
    other related programs, integrating the Government's core trade and
    competitiveness functions into one new department. Specifically, the
    department would include the Department of Commerce's core business and
    trade functions, the Small Business Administration, the Office of the
    U.S. Trade Representative, the Export-Import Bank, the Overseas Private
    Investment Corporation, and the U.S. Trade and Development Agency. This
    Department would be responsible for expanding trade and investment,
    growing small businesses, and supporting innovation, and would be more
    effectively aligned to strengthen trade enforcement and implement a
    strong, pro-growth trade policy.
        Question. If the State Department, what level of coordination would
    you expect from the new department and State to ensure these concerns
    are addressed?
        Answer. If Congress grants him that authority, we will consult with
    Congress, other agencies and stakeholders and develop a more detailed
    proposal for the creation of the proposed new department. Unless and
    until that authority is granted, we remain focused on our current
    mission.
        Question. Regarding the American Community Survey.--What is the
    total cost per completed survey?
        Answer. In fiscal year 2014, the cost of the American Community
    Survey (ACS) was $230 million. The Census Bureau conducted about 2.4
    million interviews that year, thus yielding a cost of approximately $96
    per completed survey. Each year only a small percentage of households
    are selected to participate in the survey, yet the entire country
    benefits from the wealth of information the ACS provides--over 11
    billion estimates each year. For just $1.72 per household a year, our
    communities and businesses get the data they need to help them plan and
    make decisions to invest and grow our economy.
        Question. Is there a problem with moving to voluntary completion?
        Answer. Yes. Census research, and experience in other countries,
    show that moving to a voluntary survey would make the American
    Community Survey (ACS) more expensive, less accurate, or both. Because
    the ACS would have far fewer completed interviews, the resulting data
    would be much less reliable. To achieve the same level of quality of
    the current mandatory survey, the Census Bureau would have to spend an
    additional $90 million annually to implement a voluntary ACS. Making
    the survey voluntary would disproportionally affect rural areas and
    small populations throughout the Nation. A voluntary ACS at current
    funding levels would result in the loss of data for approximately 61
    million people, representing about 24 percent of counties--mostly rural
    and small communities.
        The Census Bureau's top priority is respecting the time and privacy
    of the people providing the information. We are accelerating our
    program of research to address these concerns, including how best to
    operationalize needed changes. We are focused on specific ways to
    reduce the concerns of survey respondents. For instance: (1) can we
    remove questions by using other data sources, including information
    people have already provided to the government? (2) can we better
    phrase our questions to reduce respondent concern, especially for those
    who may be sensitive to providing information? (3) can we ask some
    questions every other year, or every third year? The Census Bureau
    continues to place a high priority on this work and will report to the
    Secretary of Commerce by the end of the fiscal year (2015).
        Question. In written testimony before this subcommittee, Inspector
    General Zinser testified that ``from fiscal year 2012 through February
    18, 2015, around 38 percent of the contract obligations awarded by the
    Department have been high-risk obligations.''
        What steps are you taking to ensure that the Department properly
    awards, administers, and reports high-risk contracts?
        Answer. In response to recommendations set forth in the published
    Office of Inspector General audit report entitled, The Department's
    Awarding and Administering of Time-and-Materials Contracts Needs
    Improvement, the Department of Commerce has taken significant steps to
    improve the use and management of high-risk contracts to include:
      --Incorporated definitive control objectives specific to high-risk
            contract actions into Acquisition Management Reviews;
      --Increased the focus of the Acquisition Review Board and Investment
            Review Board processes to require further details when awarding
            high-risk contracts, including the use of a standardized list
            of considerations to evaluate proposed acquisition strategies;
      --Monitoring the use of new contract dollars awarded with high-risk
            contracting authorities through the Department's Acquisition
            Council on a monthly basis; and
      --Re-issued departmental policy to the Department's contracting
            workforce on the proper use, management and documentation
            requirements of contracts awarded under high-risk contracting
            authorities.
        With these tools in place, the Department is assured that
    sufficient awareness and oversight is in place to ensure high-risk
    contracts are awarded, administered and reported properly.
                                     ______

                Questions Submitted by Senator Dianne Feinstein
                  noaa efforts regarding salmonid populations
        Question. Since the issuance of the 2009 salmon biological opinion,
    operations of California's Central Valley Project (CVP) and State Water
    Project (SWP) are required to adhere to stringent regulations in order
    to protect endangered and listed salmonid species.
        However, nearly 6 years after the actions required by the salmon
    biological opinion has taken effect, the species is still suffering,
    and population recovery is still a distant goal.
        While there are many debates about the effects of the CVP and SWP
    on salmonid species, there is general consensus that water pumping is
    not the only action that affects salmonid populations.
        Based on the best available science today, what factors besides
    water pumping negatively affect the extent and pace of recovery in
    salmonid populations?
        Answer. Habitat loss and degradation are primary limiting factors
    for anadromous salmonid populations. Currently, dams block Chinook
    salmon and steelhead from over 90 percent of their historical spawning
    habitat in the Central Valley. In addition, 98 percent of riparian and
    floodplain habitat in the lower river and Delta is no longer available
    to support healthy fish runs.
        Numerous additional factors (besides water pumping) impair
    recovery, including: blocked access to historical spawning areas;
    drought conditions; disconnected floodplain habitat along tributaries
    and mainstreams; impaired flow and sediment regimes below dams that
    degrade rearing habitats in stream channels and reduce the frequency
    and magnitude of high and turbid flows beneficial to juvenile
    migration; channel revetments and levees that eliminate shallow rearing
    habitat; commercial and recreational fisheries; impaired water quality;
    predation by non-native fish; and unintended effects of hatcheries all
    contribute to declining populations. Many of these factors are related
    to the existence and operation of the water projects, but are not
    directly related to pumping.
        In July 2014, the National Marine Fisheries Service (NMFS) issued a
    recovery plan for Sacramento River winter-run Chinook salmon, Central
    Valley spring-run Chinook salmon, and California Central Valley
    steelhead that identifies and prioritizes the above factors, and other
    threats and stressors to each of the life history stages of the listed
    salmonids.
        Question. Since the issuance of the 2009 salmon biological opinion,
    what steps has NOAA taken to address these other factors and to improve
    salmon recovery efforts?
        Answer. NOAA has taken the steps shown below to improve salmon
    recovery efforts:
      Habitat
        NMFS has been actively pursuing salmonid reintroductions to
    historical habitat in the Sacramento River watershed upstream of Shasta
    Dam, in Battle Creek, in the upper Yuba River watershed, and in the San
    Joaquin River. NMFS has also been engaged in the California Department
    of Water Resources' FloodSAFE initiative in order to integrate
    floodplain and riparian habitat restoration into the State's flood
    protection system and associated conservation strategy.
      Fisheries
        NMFS established a regulatory management strategy for protecting
    winter-run Chinook salmon in the ocean salmon fishery such that the
    fisheries' impacts will be lessened if the population's abundance
    declines below key thresholds.
      Hatcheries
        NMFS' Southwest Fisheries Science Center was directly involved in
    the California Hatchery Scientific Review, and NMFS has been engaged
    with other agencies in implementing the recommendations developed
    during the review.
      Salmon Loss in Colusa Basin
        NMFS has been directly involved in multi-agency efforts to rescue
    salmon and steelhead that were trapped in the Colusa Basin Drain and
    has been working closely with agencies and stakeholder groups to
    minimize impacts.
      Drought
        The five agencies primarily involved in the coordinated operation
    and regulation of the Federal Central Valley Project (CVP) and State
    Water Project (SWP) are planning for a fourth year of drought. Working
    in close coordination, the United States Department of the Interior
    Bureau of Reclamation (Reclamation) and the Fish and Wildlife Service
    (USFWS), the United States Department of Commerce National Oceanic and
    Atomosphieric Administration (NOAA) through the National Marine
    Fisheries Service (NMFS), the California Department of Water Resources
    (DWR), and the California Department of Fish and Wildlife (CDFW) have
    developed an Interagency 2015 Drought Strategy in order to rapidly and
    equitably balance between all of the competing needs for limited water.
    Core principles in the drought strategy include specific protections
    for salmon and steelhead.
      Recovery Partner Collaboration
        NMFS has been working closely with its agency partners and the
    Golden Gate Salmon Association, the Glenn-Colusa Irrigation District,
    the Northern California Water Association, Trout Unlimited, Cal-Trout,
    and American Rivers to develop and pursue salmonid recovery actions.
    This collaboration resulted in on the ground results in 2014 with the
    completion of the Painter's Riffle habitat restoration project on the
    Sacramento River.
        In 2014, NMFS released its Final Recovery Plan for Central Valley
    Chinook Salmon and Steelhead jointly with California Department of Fish
    and Wildlife's Ecosystem Restoration Program Conservation Strategy.
    Parallel with the release and implementation of these plans, Golden
    Gate Salmon Association and Northern California Water Association
    developed salmon restoration initiatives, and multiagency efforts are
    underway to strengthen implementation of the Central Valley Project
    Improvement Act's fish program. NMFS continues to be heavily engaged in
    these stakeholder and agency partner efforts in order to help achieve
    salmon and steelhead recovery goals.
      Budget
        The fiscal year 2016 President's budget request includes an
    increase of $1.3 million for ESA salmon recovery for a total of $68.5
    million. Under this proposal, NOAA will address Atlantic and Pacific
    salmon recovery including expanded Pacific salmon monitoring
    capabilities and increased ESA section 7 consultation capacity on the
    West Coast to improve our on-time consultation completion rate in
    support of the regional economy.
        Specifically, NMFS' work in the Sacramento and San Joaquin
    watersheds occurs in three main program areas:
      Central Valley/State Water project ESA review and permitting
        These activities include immediate action on the drought, work on
    the biological opinion for the Long-term Water Operations for the State
    Water Project and Central Valley Water Project Remand, and development
    and review of the Bay-Delta Conservation Plan.
      ESA administration for the broader suite of actions across the entire
            Central Valley/San Joaquin geography
        These activities include continued work on large-scale programs
    such as the San Joaquin River Restoration Program and the Central
    Valley Flood Protection Program, development and review of Hatchery
    Genetic Management Plans, and ESA section 7 consultations.
      Monitoring and technical support (for the activities mentioned above)
        This includes NMFS activities to develop salmonid life cycle
    modeling for the Central Valley, as well as any research and monitoring
    needs that may be carried out. Adaptive management is central to
    planned future water project operations, and adaptive management
    requires ongoing research support for development and updating of
    conceptual and quantitative models, design and execution of monitoring
    programs, and management and synthesis of scientific information. This
    will require an ongoing investment in our anadromous fish research
    program as well as infrastructure to conduct monitoring.
        The recent drought emergency has increased short term stress on
    completing our regulatory requirements and highlighted the need for
    more comprehensive management of the system focused on the long term
    protection and recovery of salmonids.
        The budget also includes an increase of $19 million for expanded
    consultation capacity nationwide, including in California.
        Question. Please provide a list and description of the habitat
    restoration projects NOAA has supported or conducted in the Sacramento-
    San Joaquin River Delta since the issuance of the 2009 salmon
    biological opinion to help improve endangered/listed salmonid recovery.
        Answer. NMFS is significantly involved in many important
    collaborative restoration projects in the Sacramento-San Joaquin Delta
    in a technical advisory capacity. NMFS works with numerous partners to
    shape these efforts, ensuring that projects are designed to avoid
    jeopardizing ESA-listed salmon and steelhead and to contribute to
    recovery goals and actions consistent with the recent Central Valley
    Recovery Plan.
        Since 2010, NMFS has supported and participated in the Fish
    Restoration Program (FRP). The FRP is an agreement between California
    Department of Fish and Wildlife and California Department of Water
    Resources (CDWR) that was signed following the 2009 salmon biological
    opinion. The primary Fish Restoration Program obligation is to restore
    8,000 acres of intertidal marsh and associated subtidal habitat in the
    Delta and Suisun Marsh. This includes 800 acres of marsh in the low-
    salinity-zones of the estuary made up of the Suisun Marsh and the
    westernmost part of the Delta. The Fish Restoration Program also
    includes a number of actions to benefit winter-run and spring-run
    salmon, steelhead, sturgeon and other native fish species. The focus of
    these restoration efforts has been in the Delta, Suisun Marsh and Yolo
    Bypass, as well as connected upstream watersheds. For example, CDWR
    acquired a substantial portion of Prospect Island in 2010 and has been
    leading the restoration of this important intertidal habitat. In
    addition, the State of California contributed $12 million toward the
    restoration of Battle Creek for salmon and steelhead. NMFS is a partner
    of the multi-agency effort (approximately 10 agency and public
    partners) implementing the Battle Creek Restoration Project. For a
    summary of the FRP, including annual reports, see http://
    www.water.ca.gov/environmentalservices/frpa.cfm.
        There are a number of other Deltarestoration and planning efforts
    underway in which NMFS is involved to provide technical guidance. These
    include the following major restoration projects:
      --Delta Stewardship Council Delta Plan;
      --California EcoRestore (formerly par of the Bay Delta Conservation
            Plan BDCP) \1\;
    ---------------------------------------------------------------------------
        \1\ On April 30, 2015, the Governor of California announced new
    parallel plans for restoring the Sacramento-San Joaquin River Delta
    ecosystem and the modernization of California's aging water
    infrastructure. The Bay Delta Conservation Plan (BDCP) will no longer
    be pursued as a habitat conservation plan. The new approach entails two
    separate, but parallel, State plans:
        1. A habitat plan California EcoRestore aims to restore nearly
    40,000 acres to support the long-term health of the Delta's native fish
    and wildlife species.
        2. An infrastructure plan California Water Fix to achieve and
    sustain these restoration goals, while protecting the state against the
    catastrophic threats of climate change, earthquakes and levee breaks.
    ---------------------------------------------------------------------------
      --Suisun Marsh Habitat Management, Preservation, and Restoration
            Plan, and
      --Ecosystem Restoration Program (for 2014 highlights report see
            https://nrm.dfg.ca.gov/
            FileHandler.ashx?DocumentID=93380&inline.
        Question. What steps has NOAA taken since the issuance of the 2009
    biological opinion to reduce/mitigate the effects of non-native
    predator species (such as striped bass) on the recovery of endangered/
    listed salmonid species? Please specifically describe the projects
    involved and their status.
        Answer. Predator fish, including striped bass, are one source of
    Chinook salmon mortality, and it is a priority in our Central Valley
    Salmon and Steelhead Recovery Plan to implement projects to reduce
    predation at weirs and diversions in the Delta. Per our 2009 Biological
    Opinion, NMFS is working with the California Department of Water
    Resources (CDWR) to develop and implement predator control methods for
    Clifton Court Forebay on the State Water Project.
        In 2014, NMFS initiated a study in the south Delta to examine
    whether predator removal could be a viable management strategy to
    improve survival of salmonids migrating through this area, and to learn
    about predator identity, activity, abundance, and behavior. Preliminary
    results show that striped bass are a frequent predator of salmonids,
    but many salmon are also consumed by catfish. Removing striped bass
    from small areas can improve survival of salmonids transiting that
    area, but striped bass are very mobile and quickly repopulate areas
    from which they have been removed. Predators were found to be
    concentrated in certain places with particular physical conditions such
    as holes scoured by the current in the bends of armored channels, areas
    with underwater structures that provide cover to predators, and water
    diversions that concentrate salmon (these have been noticeable,
    although we still have more to learn from careful analysis of the data
    collected). Efforts to alter these locations to make then less suitable
    for predators might be more effective than removals. This study will be
    repeated in 2015, with funding from the California Department of Water
    Resources.
        NMFS is also developing a model that should help us understand the
    relationship between inflows to the Delta, pumping, and salmonid
    survival. The model includes an agent-based salmon model that
    incorporates swimming and navigational behaviors and predation, and a
    hydraulic model of the Delta that includes tidal forcing, pumping, and
    operations of barrier gates. The salmon model has been successfully fit
    to tagging data (described briefly in response to the question below).
    The model will be used in 2015 to evaluate the impacts of alternative
    water project operations, and to more generally understand the
    conditions under which and the mechanisms (direct entrainment or
    increased exposure to predation) by which pumping impacts salmon. This
    study is ongoing, with funding from the U.S. Bureau of Reclamation.
        Question. What steps has NOAA taken since the issuance of the 2009
    biological opinion to improve monitoring, surveying, and detection of
    salmonid species in the Delta, so that the agency has a clear
    understanding of the presence and distribution of salmon in the Delta?
    Please specifically describe the projects involved and their status.
        Answer. Since 2007, NMFS has been employing acoustic tag technology
    to monitor the migration and survival of salmonids between spawning
    areas and the Pacific Ocean. In 2013, tags became small enough to
    implant in endangered winter-run Chinook, and in 2015, receivers were
    deployed in the river and Delta that transmit their data in real time
    to a Web server, allowing water and fishery managers to know when
    tagged winter Chinook are entering key areas. These studies have
    revealed the importance of flow pulses to the migration and survival of
    winter Chinook and threatened steelhead, and the existence of mortality
    hot-spots within and outside of the Delta. NMFS is also starting a
    pilot project in 2015 to examine the potential of radio-frequency
    identification tags (which are 100x cheaper than acoustic tags) to
    greatly expand the scope of salmonid monitoring studies. This work is
    ongoing, with funding from the U.S. Bureau of Reclamation and the
    California Department of Fish and Wildlife (CDFW).
        In addition, NMFS Southwest Fisheries Science Center (SWFSC) is
    modifying the existing particle tracking model to develop an enhanced
    particle tracking model that assigns advection and ``swimming''
    behavior to particles as part of their effort to develop a life cycle
    model for winter-run Chinook Salmon. By inserting a number of these
    particles at select Delta locations into a simulation of current and
    forecasted hydrology, the enhanced particle tracking model can provide
    information on predicted route selection and fate of particles to
    inform management of various hydrodynamic effects of operations on
    salmonid movement. Using the enhanced particle tracking model for real-
    time operations in 2015 would provide an initial trial of the
    calibrated modeling and analytical efforts and techniques required for
    rapid response. Funding for this effort is provided by the U.S. Bureau
    of Reclamation.
        Kodiak/Midwater trawl monitoring stations were implemented at
    Jersey Point and Prisoners Point in the Delta in 2014-2015 in order to
    establish a baseline understanding of the timing, duration, and
    frequency of anadromous salmonid species at those monitoring locations.
    The trawl monitoring was also utilized before, during, and after a
    storm event, and also in anticipation of and during flexible operations
    that are different than required in the biological opinion, in order to
    inform operations and better understand the influence of storm events
    and operations on the timing, distribution, and magnitude of the
    anadromous salmonid species.
        Question. What steps has NOAA taken since the issuance of the 2009
    biological opinion to test and/or implement physical and non-physical
    barriers in the Delta that would better protect salmon from
    entrainment? Please specifically describe the projects involved and
    their status.
        Answer. In 2009 and 2010, the California Department of Water
    Resources (DWR) implemented a bio-acoustical fish fence (combination of
    bubbles, lights, and sound) study at the Head of Old River to determine
    the effectiveness of the technology in separating fish (keeping them in
    the mainstem San Joaquin River) from flow (down Old River to the
    Federal and State pumping facilities). The U.S. Bureau of Reclamation
    issued a report in 2012, but the California Department of Water
    Resources is reanalyzing the data, with another report expected
    sometime this year.
        The California Department of Water Resources implemented a bio-
    acoustical fish fence in 2011 and 2012, and a floating fish guidance
    structure in 2014, in Georgiana Slough at the upstream confluence of
    the Sacramento River to determine the effectiveness of the technologies
    in separating fish (keeping them in the mainstem Sacramento River) from
    flow (down Georgiana Slough and into the Central Delta). The California
    Department of Water Resources expects to issue a final report this
    year.
        NMFS staff are part of an interagency team, including California
    Department of Water Resources (lead), Reclamation, USFWS, and
    California Department of Fish and Wildlife, to consider engineering
    solutions to further reduce diversion of emigrating juvenile salmonids
    to the interior and southern Delta, and reduce exposure to California's
    Central Valley Project and State Water Project export facilities
    (pursuant to RPA Action IV.1.3). A final report with recommendations
    from the California Department of Water Resources was shared with NMFS
    on March 26, 2015, and we are working together to determine next steps.
        Question. What steps has NOAA taken since the issuance of the 2009
    biological opinion to reduce or eradicate aquatic invasive weeds in the
    Delta that may negatively affect oxygen and nutrient levels in Delta
    water for endangered/listed salmonid species? Please specifically
    describe the projects involved and their status.
        Answer. The California Department of Boating and Waterways (CDBW)
    and U.S. Department of Agriculture Agricultural Research Service (USDA)
    are the lead agencies in California that execute the water hyacinth
    control program (WHCP), which includes both herbicide and mechanical
    removal of the plant.
        NMFS' role in control of aquatic invasive Delta weeds is to assist
    the USDA and California Department of Boating and Waterways in
    compliance with their Endangered Species Act (ESA) section 7
    consultation requirements, since herbicide treatment and mechanical
    removal activities can be otherwise harmful to the aquatic environment.
    USDA consults with NMFS (and the U.S. Fish and Wildlife Service) to
    ensure Endangered Species Act compliance for water hyacinth control
    program actions.
        On February 27, 2013, NMFS issued a concurrence letter to USDA for
    its proposed water hyacinth control program for 2013-2017. On March 13,
    2013, the U.S. Fish and Wildlife Service issued a biological opinion to
    USDA for the same. Previous consultations requests from USDA have been
    on annual water hyacinth control program operations, however, this
    consultation was on a 5-year permit, giving longer term certainty to
    USDA and California Department of Boating and Waterways that their
    program was in compliance with the Endangered Species Act.
        NMFS also issued a concurrence letter to USDA on February 2, 2014,
    for their Spongeplant Control Program for 2014-2017. NMFS acknowledged
    the inefficiencies in consulting on individual aquatic invasive weeds
    in the Delta, even if it is for several years at a time. Therefore, in
    2014, NMFS initiated an interagency effort to assist USDA and the
    California Department of Boating and Waterways in their development of
    a comprehensive multi-year program to control all aquatic invasive
    weeds in the Delta.
                                     ______

                  Questions Submitted by Senator Tammy Baldwin
                               noaa--aquaculture
        Question. In many Wisconsin communities along the Great Lakes, we
    are seeing growing entrepreneurial interest in urban aquaculture
    systems. We also have both university- and non-governmental
    organizations providing training and support, encouraging innovation
    and growth in this industry. The NOAA budget proposal recommends a
    stronger focus on the development of aquaculture systems. Along with
    ocean coastal States, I believe Wisconsin has the potential to expand
    its aquaculture production significantly in coming years.
        What is NOAA's position on the future role of Great Lakes
    freshwater aquaculture and urban aquaculture systems in increasing U.S.
    domestic aquaculture production?
        Answer. Currently, the United States imports 90 percent of our
    seafood. This extensive importation has led to a large and growing
    seafood trade deficit that exceeds $12 billion (Fisheries of the United
    States, 2013). Part of NOAA's mission is to develop sustainable marine
    aquaculture across a broad range of systems and technologies, e.g.,
    coastal shellfish and finfish farming, offshore aquaculture, stock
    enhancement activities, and land-based systems (aka ``urban
    aquaculture''). NOAA will continue to support urban aquaculture
    development primarily through the National Sea Grant College Program.
    Urban aquaculture has been the subject of research and extension
    projects by several Sea Grant programs, including both within and
    outside the Great Lakes region, and was the subject of a major
    symposium sponsored by Rhode Island Sea Grant in 2002. NOAA anticipates
    that Great Lakes freshwater aquaculture and urban aquaculture will
    continue to play an important role as the U.S. aquaculture industry
    continues to develop.
        (2013). Fisheries of the United States 2013. Silver Spring, MD:
    National Marine Fisheries Service, Office of Science and Technology.
    URL: http://www.st.nmfs.noaa.gov/Assets/commercial/fus/fus13/
    FUS2013.pdf.
        Question. Would NOAA's proposed aquaculture funding be available to
    these non-marine systems?
        Answer. Yes. The NOAA Sea Grant National Marine Aquaculture
    competitive program is designed to support the development of
    environmentally and economically sustainable aquaculture within ocean,
    coastal, or Great Lakes settings. The fiscal year 2014 and fiscal year
    2015 Federal Funding Opportunity (FFO) announcements for this important
    Sea Grant program have stated explicitly that the Great Lakes are
    included. Additionally, Great Lakes aquaculture projects are eligible
    to apply for NOAA's National Marine Fisheries Service Saltonstall-
    Kennedy grant competition. NOAA intends to continue this policy of
    supporting Great Lakes aquaculture in fiscal year 2016.
                  noaa--coastal resilience in the great lakes
        Question. Climate change will significantly impact the Nation in
    coming years, Wisconsin included. With rich natural resources, many of
    Wisconsin's economic sectors and coastal communities will be highly
    impacted by a changing climate. Our Lake Michigan and Lake Superior
    coasts include highly developed and rural areas, forests, and protected
    shorelines. NOAA's fiscal year 2016 budget request emphasizes increased
    support for community, ecosystem, and economic resilience.
        What support will be available to support Great Lakes coastal
    resiliency?
        Answer. In fiscal year 2016, NOAA is requesting a suite of program
    increases to enhance resilience of coastal communities, economies, and
    ecosystems nationwide, including those in the Great Lakes region.
        Regional Coastal Resilience Grants will catalyze regional-scale
    implementation of resilience plans such as hazard mitigation, land use,
    and adaptation (+$45 million for a total of $50 million in fiscal year
    2016).
      --Capacity to Respond to Extreme Events will improve NOAA's
            capabilities to assess inundation risks, communicate them to
            at-risk coastal communities, and help those communities take
            action to mitigate those risks (+$4.8 million).
      --Ecosystem-based Solutions for Coastal Resilience will encourage the
            use of natural infrastructure for coastal protection by helping
            communities to compare the economic impacts of ecosystem
            protection and restoration vs. other uses of coastal lands and
            waters (+$5 million).
      --AmeriCorps Resilience Corps Pilot Program Training and Technical
            Assistance will provide training to on-the-ground AmeriCorps
            members who will work directly with communities to improve
            their resilience to climate change ($2 million).
        These initiatives will build on NOAA's ongoing efforts to emphasize
    coastal resiliency in the Great Lakes region. This includes NOAA's
    Great Lakes Coastal Resilience Planning Guide. This is an online guide
    for planners and practitioners to share proven solutions, best
    practices, and lessons learned for resilience building, as well as the
    tools, data and maps, and publications to get them there. Coastal
    Resilience Grants will assist with the implementation of the guide
    (http://coast.noaa.gov/digitalcoast/tools/gl-resilience).
                        noaa--high performance computing
        Question. The President's fiscal year 2016 budget requests an
    increase of $9,000,000 to begin recapitalization of the R&D High-
    Performance Computing (HPC) systems (i.e., Gaea) located at Oak Ridge
    National Laboratory in Oak Ridge, Tennessee and to establish a
    permanent source of funding that would allow NOAA to maintain regular
    refresh and recapitalization of supercomputing resources.
        What is the status of NOAA's response to Appropriations Committee
    language requiring submission of a long-term plan to upgrade its high
    performance computing technology and architecture?
        Answer. NOAA is currently working on a report regarding our long-
    terms plans on high performance computing (HPC) but will not meet the
    June deadline outlined in Senate Report 113-181 that accompanied Public
    Law 113-235 (180 days after enactment). Additional time is needed to
    draft and review the report due to the complexity of this topic. NOAA
    anticipates submitting this report toward the end of August (2015).
        Question. What would be the impact if Congress did not fund the
    $9.0 million requested this year in terms of NOAA's ability to perform
    its primary missions, and the cost and research implications for the
    Agency of deferring the project to another fiscal year?
        Answer. By 2016, NOAA's research and development (R&D) High
    Performance Computing (HPC) system Gaea, located at the Department of
    Energy's Oak Ridge National Laboratory in Tennessee, will be at the end
    of its useful life. Without additional requested funding, NOAA will
    have to fund recapitalization of the Gaea supercomputer within current
    resources, resulting in diminished R&D HPC capacity (approximately 50
    percent of the capacity of today's system) for weather and climate
    modeling and research that operate on Gaea now. Reductions in R&D HPC
    capability will slow down mission critical scientific advancements,
    model development and transition of research applications into
    operational applications. Specific examples of the impacts to NOAA's
    mission include:
        Loss of high-resolution modeling capability for skillful seasonal
    predictions of surface temperature, precipitation: Seasonal predictions
    of temperature and precipitation over land are in particular demand due
    to their importance to the agriculture, energy, transportation and
    marine ecosystems systems sectors for planning and decisionmaking.
    Skillful seasonal prediction of near-surface air temperature and
    precipitation over land has been achieved using a new high-resolution
    model running on the R&D supercomputer. Predictions with this model are
    being made available to global partners through the North American
    Mulit-Model Ensemble for Seasonal Prediction (NNME). NOAA may have to
    downgrade to a lower resolution, less accurate model if it has to fund
    the replacement.
        Seasonal Forecasting of Regional Tropical Cyclone Activity:
    Tropical cyclones (TCs), which include hurricanes and typhoons, are a
    major climate hazard across the Northern Hemisphere, and have exhibited
    variability and change on year-to-year timescales. Understanding and
    predicting TC activity is central to NOAA's mission. A new high-
    resolution model running on the R&D supercomputer exhibits substantial
    skill at determining the key features of regional tropical cyclone
    activity. Predictions using this model are being made available to the
    NWS and other global partners through the NNME. Funding for the
    replacement HPC is needed so NOAA can continue the research that would
    lead to these improved capabilities to predict TCs.
                commerce--trade promotion coordinating committee
        Question. A May 2014 GAO report found that there have been limited
    results from the Trade Promotion Coordinating Committee which is
    intended to advance Federal-State collaboration in promoting U.S.
    exports. The Commerce Department responded to the GAO report stating
    its intention to obtain comprehensive data on the overall Federal
    relationship with State trade promotion entities and that once this
    data was obtained, it would work to identify and implement strategies
    to enhance collaboration with State trade promotion entities.
        Can you provide the subcommittee with an update on the status of
    this effort?
        Answer. Partnering with States and regions to foster local
    ecosystems that support exporters of all sizes is one of five key
    priorities of the NEI/NEXT, which I announced in May 2014 and is the
    overarching policy reflected in the National Export Strategy. Since
    then, the Trade Promotion Coordinating Committee (TPCC) member agencies
    have begun working even more closely with State trade offices and
    entities representing them at the national level (State International
    Development Organizations or SIDO) to coordinate calendar year 2015
    Federal-State trade promotion priorities and ensure collaboration in
    serving U.S. businesses. The International Trade Administration, Global
    Markets, U.S. and Foreign Commercial Service (US&FCS) also added to the
    fiscal year 2015 performance plans for its U.S. Field Network Directors
    an element on collaboration and planning with local partners, including
    States.
        The International Trade Administration is actively in the process
    of gathering data to obtain a clearer picture of the Federal-State
    trade promotion relationship and a nationwide view of state resources
    devoted to promoting international trade.
        (1) The TPCC Secretariat is coordinating with the US&FCS U.S. Field
    to gather the Federal perspective on current Federal-State cooperation;
    information on each State's trade promotion programs, e.g. staffing
    levels and State budgets for trade promotion; the extent to which State
    offices provide assistance to companies other than through referrals to
    US&FCS programs and services; challenges to Federal-State coordination;
    and the extent of State activity focused on inward investment
    attraction.
        (2) ITA will analyze its database of reported trade promotion
    events to identify events in which the local US&FCS office mentioned
    they worked with their corresponding State office. ITA also is mining
    its customer satisfaction-related market segmentation and branding
    studies which contain information on use of alternative service
    providers.
        (3) In addition, the TPCC Secretariat is aware that SIDO is
    conducting its own survey to obtain information on the level of trade
    promotion activity within State offices, and SIDO has indicated its
    intent to share that information with the TPCC member agencies. SIDO
    has indicated that its survey will yield information on whether State
    offices have industry focuses; the size of client companies; export
    financing options for risk mitigation; how the State offices use
    Department of Commerce export and inward investment promotion programs,
    such as trade missions, and what programs they use; the frequency of
    meetings with representatives of TPCC agencies; and the most common
    barriers that prevent companies in their State from exporting.
        The TPCC plans to present preliminary findings from the ITA survey
    in April at the annual SIDO meeting, which is a gathering of State
    trade offices. We understand that SIDO also anticipates having results
    from its own survey, which SIDO reports usually has a 50 percent
    response rate, around the same time.
        Following this meeting, the TPCC member agencies will use the
    findings from this data to draft and implement plans to further enhance
    collaboration with State trade promotion efforts. During this process,
    the TPCC Secretariat will continue to work closely with SIDO and the
    various State trade offices to identify opportunities for greater
    Federal-State trade promotion collaboration to maximize efficiencies
    and the impact on export promotion.
                          commerce--patent protections
        Question. American universities, along with related nonprofit
    research institutions, conduct over half of the basic research in the
    United States. Universities are allowed to license the resulting
    patents to the private sector for commercialization. University
    technology transfer provides a rich return on both public and private
    funding for basic research in the form of countless innovative products
    and services that benefit the public, create jobs, and contribute to
    U.S. economic competitiveness and global technological leadership.
        Can you please tell the subcommittee what the Department of
    Commerce is doing to ensure a robust patent system that provides strong
    protection for inventors and supports the continued success of
    university technology transfer?
        Answer. The United States Patent and Trademark Office (USPTO), an
    agency of the Department of Commerce, provides support, outreach and
    collaboration for universities and their technology transfer systems.
    The USPTO provides training at the university level to faculty and
    students alike to enhance the role of innovation and creativity at the
    university level. This outreach provides current and future scientists,
    engineers and business-minded people the skills to understand and
    utilize intellectual property (IP) in our high-tech economy.
    Furthermore, the USPTO collaborates with the university technology
    transfer offices across America to provide training on all aspects of
    IP. The USPTO works with the Federal national laboratories to assist in
    training staff on the aspects of IP and the technology transfer process
    as well. In addition, the USPTO frequently collaborates with the
    National Academy of Inventors and InventNow in reaching out and
    supporting university patent holders and collegiate inventors.
        Some specific examples of USPTO activities include:
      --An enhanced USPTO University Outreach program is underway and is
            providing training to colleges and universities across the
            country on the basics of IP and its importance as well as the
            resources that are available at the USPTO to assist inventors,
            innovators, entrepreneurs and small business owners.
      --The USPTO is part of the Inter-Agency Group Working on Technology
            Transfer (IAGWTT) and Inter-Agency Network Enterprise
            Assistance Providers (INEAP), which is in the process of
            creating a ``Technology Transfer Playbook'' that outlines the
            best practices for the technology transfer process.
      --The USPTO provides training for Small Business Innovation Research
            (SBIR)/Small Business Technology Transfer (STTR) programs. Of
            particular note is the relationship with the Small Business
            Administration (SBA) and supporting their efforts to educate
            grantees through the SBIR Road Tour designed to reach out to
            colleges and universities.
      --The USPTO has a variety of resources on its USPTO.GOV Web site in
            the form of videos, tutorials and Web pages that explain the
            patent process and how to apply for a patent.
      --The USPTO, in a joint effort with partnership with National
            Institute of Standards and Technology/Manufacturing Extension
            Partnership (NIST/MEP), created an on-line, Web-based IP
            Awareness Assessment Tool that allows an individual to answer
            questions about their knowledge of IP and following the
            completion of the assessment, the user receives customized
            training materials.
                             commerce-patent reform
        Question. There have been some proposals in Congress and from the
    While House to reform the U.S. patent system in an attempt to reign in
    patent litigation abuses. However, in a letter from 145 American
    universities, they share their concerns that some of the patent reform
    proposals currently being discussed go well beyond what is needed to
    address the bad actions of a small number of patent holders, and would
    instead make it more difficult and expensive for patent holders to
    defend their rights in good faith.
        Can you please share with us what the Department of Commerce is
    doing to ensure that any reforms do not discourage universities and
    other patent holders from legitimately defending their patents?
        Answer. The Department and particularly its U.S. Patent and
    Trademark Office are actively working within the administration, with
    Congress, and all stakeholders, including the university community, to
    craft fair and balanced legislation to address the adverse effects of
    abusive patent infringement litigation and mass mailed, vague and
    threatening settlement demand letters. As a general matter, we are
    guided by the principle that any final legislation should effectively
    target truly abusive practices while maintaining a patent owner's
    legitimate right to enforce his or her patent. Further, we believe that
    any final legislation should take a balanced and fair approach that
    neither favors nor adversely affects any particular area of technology,
    industry or sector.
                            commerce--reorganization
        Question. The administration's budget includes a proposal to
    reorganize the administrative structure of several agencies and
    includes moving NOAA out of the Department of Commerce to the
    Department of Interior.
        Can you provide this subcommittee your thoughts on this proposal, a
    justification for this proposal and what impact it may have on NOAA?
        Answer. I support the President's request for the reorganization
    authority.
        I recognize that any reorganization of our Department would impact
    our employees' morale and productivity and our operations.
        Until the Congress grants the President this authority, we do not
    anticipate conducting any active planning on this specific proposal and
    remain focused on our current missions.
        The reality is that if the Congress grants this authority, the
    President would consult with various stakeholders before submitting a
    specific proposal to Congress that reflects the best interests of each
    agency involved and the American people.
        Right now, we are focused solely on providing the best possible
    services for the American people.

                              SUBCOMMITTEE RECESS

        Senator Shelby. The subcommittee stands in recess until
    Thursday, March the 5th, at 10:30 a.m., when we will take
    testimony of the NASA administrator, Charles Bolden.
        [Whereupon, at 12:04 p.m., Thursday, February 26, the
    subcommittee was recessed, to reconvene subject to the call of
    the Chair.]