    [Senate Hearing 114-151]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 114-151

                                 NOMINATION OF
                     JEFFREY MICHAEL PRIETO, OF CALIFORNIA,
                            TO BE GENERAL COUNSEL OF
                         THE DEPARTMENT OF AGRICULTURE

    =======================================================================

                                    HEARING

                                   before the

                           COMMITTEE ON AGRICULTURE,
                            NUTRITION, AND FORESTRY

                              UNITED STATES SENATE

                        ONE HUNDRED FOURTEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                                  MAY 21, 2015

                                   __________

                           Printed for the use of the
               Committee on Agriculture, Nutrition, and Forestry

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               COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                         PAT ROBERTS, Kansas, Chairman

    THAD COCHRAN, Mississippi            DEBBIE STABENOW, Michigan
    MITCH McCONNELL, Kentucky            PATRICK J. LEAHY, Vermont
    JOHN BOOZMAN, Arkansas               SHERROD BROWN, Ohio
    JOHN HOEVEN, North Dakota            AMY KLOBUCHAR, Minnesota
    DAVID PERDUE, Georgia                MICHAEL BENNET, Colorado
    JONI ERNST, Iowa                     KIRSTEN GILLIBRAND, New York
    THOM TILLIS, North Carolina          JOE DONNELLY, Indiana
    BEN SASSE, Nebraska                  HEIDI HEITKAMP, North Dakota
    CHARLES GRASSLEY, Iowa               ROBERT P. CASEY, Jr., Pennsylvania
    JOHN THUNE, South Dakota

                   Joel T. Leftwich, Majority Staff Director
                    Anne C. Hazlett, Majority Chief Counsel
                        Jessica L. Williams, Chief Clerk
                 Christopher J. Adamo, Minority Staff Director
                  Jonathan J. Cordone, Minority Chief Counsel

                                      (ii)

                                C O N T E N T S

                                  ----------
                                                                       Page

    Hearing(s):

    Nomination of Jeffrey Michael Prieto, of California, to be
      General Counsel of the Department of Agriculture...............     1

                                  ----------

                             Thursday, May 21, 2015
                        STATEMENTS PRESENTED BY SENATORS

    Roberts, Hon. Pat, U.S. Senator from the State of Kansas,
      Chairman, Committee on Agriculture, Nutrition, and Forestry....     1
    Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan...     2

                                    Witness

    Prieto, Jeffery Michael, of California, to be General Counsel of
      the Department of Agriculture..................................     2
                                  ----------

                                    APPENDIX

    Prepared Statements:
        Stabenow, Hon. Debbie........................................    14
        Prieto, Jeffery Michael......................................    15
    Document(s) Submitted for the Record:
        Committee questionnaire and Office of Government Ethics
          Executive Branch Personnel Public Financial Disclosure
          Report filed by Jeffrey Michael Prieto.....................    18
    Question and Answer:
    Prieto, Jeffery Michael:
        Written response to questions from Hon. Pat Roberts..........    36
        Written response to questions from Hon. Debbie Stabenow......    36
        Written response to questions from Hon. Michael Bennet.......    36

                                 NOMINATION OF
                     JEFFREY MICHAEL PRIETO, OF CALIFORNIA,
                            TO BE GENERAL COUNSEL OF
                         THE DEPARTMENT OF AGRICULTURE

                                  ----------

                             Thursday, May 21, 2015

                                  United States Senate,
             Committee on Agriculture, Nutrition, and Forestry,
                                                         Washington, DC
        The committee met, pursuant to notice, at 9:58 a.m., in
    room 328A, Russell Senate Office Building, Hon. Pat Roberts,
    Chairman of the committee, presiding.
        Present or submitting a statement: Senators Roberts,
    Boozman, Hoeven, Perdue, Ernst, Tillis, Sasse, Grassley, Thune,
    Stabenow, Klobuchar, Bennet, Gillibrand, Donnelly, and Casey.

     STATEMENT OF HON. PAT ROBERTS, U.S. SENATOR FROM THE STATE OF
    KANSAS, CHAIRMAN, U.S. COMMITTEE ON AGRICULTURE, NUTRITION, AND
                                FORESTRY

        Chairman Roberts. The vote is at 10:00, I understand now,
    and guess what, we could proceed to see just how far we can
    move along.
        Mr. Prieto, would you please come before the committee.
        [Pause.]
        Chairman Roberts. The purpose of this hearing is Mr.
    Jeffrey Prieto's nomination to serve in the position of General
    Counsel for the United States Department of Agriculture. We
    welcome you, sir.
        The Office of the General Counsel at the USDA was
    established in 1910. It is an independent agency providing
    centralized legal advice and services to the Department in
    support of all programs and activities. The legal services
    range widely, from providing counsel to USDA officials, to
    providing technical assistance to Congress during farm bills,
    to conducting litigation. The office also provides litigation
    support services to the Department of Justice, as needed.
        The General Counsel is responsible for providing advice and
    counsel directly to the Secretary and the Deputy
        Secretary, in addition, overseeing the Washington, DC-based
    office. The position also supervises 12 field offices within
    OGC as well as the Office of Ethics.
        Our nominee, Mr. Prieto, currently serves as Acting General
    Counsel at the Department. He has worked at the Department
    since June of 2014, when he was hired to be the Principal
    Deputy. Prior to his service at the Department, he was an
    attorney at the Department of Justice for 15 years and also
    worked as an attorney advisor at the Environmental Protection
    Agency. He is a graduate of the UCLA School of Law, holds a
    Master's degree of Public Affairs from the Woodrow Wilson
    School of Public and International Affairs at Princeton
    University, and is from California.
        Mr. Prieto, I understand that your wife, Sheryl, son
    Daniel, and mother, Lucy, as well as other friends and family
    join you today. If I could ask them to stand, I would do that
    now. We welcome you to the committee.
        [Applause.]
        Chairman Roberts. I look forward to hearing your testimony
    today and asking you some questions in regard to the role you
    would serve at the Department, if confirmed.
        I first turn to my distinguished Ranking Member for any
    remarks that she may have.

    STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM THE STATE
                              OF MICHIGAN

        Senator Stabenow. Well, thank you, Mr. Chairman.
        In the interest of time, I will put my opening statement
    into the record, but I just want to welcome Mr. Prieto and your
    family. I know they are very, very proud of you. You have been
    serving us well in an acting position.
        This is obviously an incredibly important position of
    General Counsel. Our farmers and ranchers and families and
    rural communities count on you to help guide us as we implement
    the farm bill and other policies that create tools for our
    growers and the resources for our communities.
        Mr. Chairman, thank you for bringing the nomination
    forward. I hope we can swiftly confirm Mr. Prieto as General
    Counsel, and I will put the rest of my comments into the
    record.
        [The prepared statement of Hon. Debbie Stabenow can be
    found on page 14 in the appendix.]
        Chairman Roberts. I thank the Senator.
        There are two questions that I need to ask you, sir, under
    oath, before your testimony, if you could please stand and
    raise your right hand.
        Do you swear that the testimony you are about to present is
    the truth, the whole truth, and nothing but the truth, so help
    you God?
        Mr. Prieto. I do.
        Chairman Roberts. Second, do you agree that, if confirmed,
    you will appear before any duly constituted committee of the
    Congress, if asked to appear?
        Mr. Prieto. I do and will.
        Chairman Roberts. Thank you, sir.
        Mr. Prieto. Thank you.
        Chairman Roberts. Please be seated.
        You are recognized for your testimony, sir.

     TESTIMONY OF JEFFREY MICHAEL PRIETO, OF CALIFORNIA, NOMINATED
         TO BE GENERAL COUNSEL, U.S. DEPARTMENT OF AGRICULTURE

        Mr. Prieto. Good morning, and greetings, Mr. Chairman,
    Ranking Member Stabenow, and other distinguished members of
    Congress and the committee. I thank you all for your
    willingness to hold this hearing.
        It is a great honor to be before you as President Obama's
    nominee as the General Counsel. I am also grateful to not only
    the President, but to Secretary Vilsack for this honor, as
    well, and I look forward to continuing to serve the American
    public if I am so privileged of being confirmed.
        I also thank you, Mr. Chairman, for recognizing my family,
    because it is an honor to have them here. I just want to
    publicly take a moment to thank my wife. We have had a long
    journey to this particular place, and without her love,
    support, I would not be here.
        I also want to thank my mother, my sister, and our Rector,
    as well, for their prayers, their support. My oldest son is
    here. My youngest son started his summer job today and I told
    him he cannot miss working----
        [Laughter.]
        Mr. Prieto. --so I know that he is here in spirit. But, I
    am so grateful to all of them and all of the members and
    friends and family that are here, and also to my community.
    Because of them, I have this opportunity, and I intend to
    continue to pay back that particular debt.
        But, I am also a product of my family's history. My family
    has been in this country for two generations. I think today of
    three uncles who were killed in World War II, my cousins who
    have served, including one who received the Distinguished
    Flying Cross during the Vietnam conflict, another cousin who
    has served in Special Forces during the Afghan situation, and
    they are my inspiration. I think about them today, both those
    that have passed, those that are still here, and they have
    inspired me.
        But, I also understand that inspiration has to be coupled
    with hard work. I learned how to work hard from my grandfather.
    My grandfather worked in a citrus packing house in Santa Paula,
    California, for over 50 years, and he loved that job. He woke
    up every morning, went to work. The bell would come, he would
    come home for lunch, and he would go back. I worked there a
    summer and I know how hard he worked. But, that is where I
    learned how to work hard, and it was because of him and his
    sacrifices and my grandmother's that we had the opportunities.
    They supported us in so many different ways, at times
    financially, our family in Mexico, and it was because of them,
    again, that I am here.
        But, not only inspiration and hard work, but there has to
    be a purpose, and that purpose has been public service. I am so
    glad that my mother is here today, because I learned what it is
    to serve from my mother. My mother was our primary earner. She
    worked a variety of jobs, and when we were growing up worked in
    a split schedule so that she could be home when we left and she
    was home when we got back, and then would go back to work. It
    is, again, because of that sacrifice that, again, I understand
    that it is not just enough to be inspired, it is not just
    enough to work hard, but that you have to have a purpose.
        I believe that coming together at this particular time,
    this is my purpose, and my purpose has been to serve the
    American public. If confirmed, serving as a General Counsel
    would be the apex of my career. I am very proud of my service
    as a government attorney and I think that that uniquely
    prepares me, because I do understand the complexities of
    working with federal legal agencies, the complexities of
    issues.
        I have been privileged to work on some of the most
    important cases during my time at the Department of Justice and
    I continue to bring that insight, that work ethic, that
    understanding in serving in this particular position.
        But, in terms of USDA, I also look forward to serving
    America's farmers, ranchers, rural communities, because they
    are not only essential contributors to the nation's economy,
    they are amongst the most challenged segments of American
    society. Both of my parents grew up in Santa Paula, California.
    It is the citrus capital of the world, and I know there may be
    states that may disagree with that. But, because of that
    product, I understand the importance of agriculture in people's
    lives. I understand what we gained as a family because of my
    grandfather's work.
        I have been privileged in my life. I have been privileged
    to work on the issues that I have worked on and I look forward
    to continuing to do so. I also look forward to working in USDA
    because we have some of the finest attorneys, some of the
    finest professional staff that I know not only serve the
    Department, the American public, but work so closely with you
    all, and I am committed to continue to do so.
        Finally, if you would honor me by recommending me, and
    should the Senate confirm me, I will do everything in my power
    to execute the duties of the General Counsel. I intend to
    execute my duties with the highest level of integrity, skill,
    and professionalism to earn your trust, to earn your respect,
    and I am committed to working with the leadership of USDA, with
    the Congress, to further the best interests of all Americans.
        So, I thank you, Mr. Chairman, Ranking Member, for holding
    this hearing to consider my candidacy. I am grateful for your
    time and I am glad to answer any questions that you might have.
        [The prepared statement of Mr. Prieto can be found on page
    15 in the appendix.]
        Chairman Roberts. Well, Mr. Prieto, we thank you for your
    humble and most eloquent statement. Thank you, sir.
        As members know--Senator Bennet, would you like to be
    recognized to cast your vote aye on behalf of the Grain
    Standards Act?
        Senator Bennet. Yes, Mr. Chairman.
        Chairman Roberts. Senator Klobuchar, as well?
        Senator Klobuchar. Thank you.
        Chairman Roberts. We appreciate it.
        Senator Thune. Mr. Chairman? Mr. Chairman, way down here at
    the end?
        [Laughter.]
        Chairman Roberts. Yes.
        Senator Thune. Could I also be recorded as yes on the Grain
    Standards----
        Chairman Roberts. I would be very pleased to acknowledge
    your vote.
        Senator Thune. Mr. Chairman, thanks.
        Chairman Roberts. We have some questions. The staff will
    let us know when the vote starts, and I want to thank members
    for coming and giving us a quorum.
        Mr. Prieto, farmers and ranchers are affected on a daily
    basis by decisions made at agencies all across our federal
    government, some of them quite intrusive. They are impacted by
    rules such as the waters of the U.S. rule at EPA and
    regulations on transporting farm goods and commodities at the
    Department of Transportation. You know that. What appropriate
    role or supporting role, if any, do you envision for the Office
    of General Counsel during the interagency process and
    discussions as laws affecting our agriculture producers are
    implemented, sir?
        Mr. Prieto. Mr. Chairman, thank you very much for that
    question. I see a very robust role, and, obviously, depending
    on the circumstance. Some of the examples you have provided,
    USDA is not the lead, and in those particular instances, we
    serve in a counseling role. That counseling role ensures that
    the interests of the agricultural community are embodied, that
    they are raised. We work very, very hard to ensure in working
    with other federal agencies--and this is, again, an area that I
    think particular insight--understanding the need for
    collaboration. I am committed and will continue to ensure that
    the interests of the agricultural community are raised and
    considered by other federal agencies as they move forward on
    those rules and responsibilities that they have primary
    responsibility over.
        Chairman Roberts. Thank you, sir.
        I want to draw attention to the committee and to everybody
    present, and to you, Mr. Prieto, there has been recent media
    attention on federal agencies like the EPA improperly promoting
    its regulatory actions with regards to waters of the U.S. A
    recent news article raises questions about EPA's role and
    actions employed in order to garner public support for the
    proposed rule and reports that critics believe the EPA
    inappropriately influenced the campaign, which is prohibited
    for a federal agency according to the Anti-Lobbying Act.
        Now, given your legal expertise, do you believe the EPA
    violated the law? If confirmed, how would the Office of General
    Counsel ensure the USDA is compliant with the Anti-Lobbying Act
    restrictions?
        Mr. Prieto. Again, Mr. Chairman, thank you very much for
    that question. I can speak to the USDA. We understand the
    statutory requirements in these particular issues. Clearly, we
    have significant outreach to our communities. We do it in the
    way that fits and within the statutory requirements, and I can
    commit to you, sir, and to this committee, that we will
    continue to do everything that we do within the statutory
    requirements of those particular provisions.
        Chairman Roberts. Thank you, sir.
        Now, I have raised this issue because I was disappointed,
    although not entirely surprised, to learn of EPA's very
    questionable activities surrounding the manner by which they
    advanced the WOTUS proposed rule through the rulemaking,
    especially the public comment process. I am deeply concerned
    and troubled that the EPA and administration officials may have
    not only undermined the meaningful consultation and
    collaboration with state partners and stakeholders in the
    rulemaking process, but I am also concerned about their role in
    manipulating and influencing the outcome of the public comment
    period.
        Now, in March, Administrator McCarthy testified before
    Congress and said without any hesitation that over one million
    comments--one million--and 87.1 percent of those comments we
    have counted--I am quoting her--so far are supportive. Let me
    repeat. Eighty-seven-point-one percent of those plus one
    million are supportive of this rule.
        Well, given what has come to light in recent days, I find
    this statement to be completely disingenuous and automatically
    discredit EPA's objectivity through every facet of the
    rulemaking process to date. We all know that the EPA will issue
    the WOTUS rule any day now, probably tomorrow.
        This committee heard directly from farmers and ranchers,
    this committee. They came, they testified, from all regions of
    the country, ranchers, state agency officials, various
    industries in Kansas, all throughout the country, about the
    impacts of EPA's proposed WOTUS rule. It became the number one
    issue of concern throughout all of rural America with regards
    to regulatory overreach. This resounding message was
    communicated before our committee, and it was clear that this
    was the wrong approach and the wrong rule for agriculture,
    rural America, and small communities.
        When I and other members of this committee raised the
    concerns of our constituents with Administrator McCarthy, we
    were told that they should submit comments for the record and
    EPA would take them under consideration. Well, we now know that
    the EPA stacked the deck against them. Rather than listening to
    public comments from our agriculture constituents, it appears
    that EPA has orchestrated a political grassroots lobbying
    campaign with environmental groups to manipulate the process
    and disregard legitimate concerns from rural America.
        Now, regardless of our position on the rule--we have
    members of the committee who support the committee, I know
    that. We have those of us who think that we could certainly at
    least tweak it, or at least make it more fair, or simply back
    it off for a while. That is not the issue. I give everybody
    here the credit for their intent. The issue is having a fair
    comment period where producers' legitimate concerns are heard
    and protected, not drowned out by the EPA itself.
        So, Mr. Prieto, I raise this issue with you only to say, I
    encourage you--I encourage you--in your capacity as General
    Counsel to ensure that the USDA follows the law and not in the
    footsteps of the EPA, because this committee has the oversight
    responsibility and we will be watching. I know you will do that
    job.
        The Agriculture Committee has a very full plate this
    Congress with several pieces of legislation to complete before
    September 30. There is a long tradition in this committee of
    OGC being a partner in this task to ensure that we get the
    language right. Do I have your commitment to make your staff
    available to assist us in this work?
        Mr. Prieto. You do, Mr. Chairman.
        Chairman Roberts. There are other questions that I will
    submit for the record, and I recognize the distinguished
    Ranking Member.
        Senator Stabenow. Well, thank you very much, Mr. Chairman,
    and welcome again, and let me just indicate I think with the
    Clean Water Act revisions that the proof will be in the pudding
    and that we all want to make sure that all the traditional
    agricultural exemptions and forestry exemptions are in place so
    that, in fact, agriculture can continue to do what they need to
    do and also protect the waters of this country, which we all
    care deeply about, including and specifically our farmers and
    ranchers who count on this resource, and we are seeing the
    challenges across the country right now from lack of water. So,
    we are all in this and need to get it right.
        Mr. Prieto, you have a very impressive career in civil
    service and you received a number of awards throughout your
    tenure at the Department of Justice. You have now been at the
    USDA's Office of General Counsel for nearly a year. I wonder if
    you could speak a little bit more about your experience at the
    Department of Justice, specifically within the Environment and
    Natural Resources Division, how you think that experience
    helped prepare you to be General Counsel of the USDA.
        Mr. Prieto. Thank you, Senator, and I thank you also for
    the compliments relative to my career. I believe that my time
    as a federal prosecutor at the Department of Justice has,
    frankly, prepared me very well for the position at USDA. Many
    of the cases that I litigated, that I served upon, included a
    significant number of federal agencies who we were
    representing, both on the affirmative and on the defensive
    side. It has given me the experience to work across the
    government to ensure that consensus is reached, that decisions
    are reached, so that the United States could speak with a
    single voice. I think that experience in terms of working
    across the government will serve me well.
        Again, USDA has many partners and it is incredibly
    important, as both you and the Chairman have raised, in terms
    of the relationship that USDA has, the role that we play as
    different rules go forward, as different practices go forward.
    So, I believe that it has prepared me well to serve in that
    particular role at USDA.
        Senator Stabenow. Thank you.
        You are also in charge of managing several deputy and
    associate general counsels, 12 regional and field offices, I
    think over 250 people. Could you talk about how your previous
    experience has helped you be able to get to this point in terms
    of leading a very large staff and the challenges of moving
    forward as you work with us.
        Mr. Prieto. Thank you, Senator. I think one of the
    challenges that anyone faces coming into this position is
    working with career public servants. I think, based on my
    experience, I have a very good understanding of the challenges
    that federal attorneys face. I think that, in itself, has
    prepared me quite well to work with my now colleagues at USDA.
        I also think some of the cases that I worked on, and based
    on the complexity some of the largest that the United States
    has brought, allows me also well to understand the challenges
    that we face. We have a wonderful career staff and I am very
    proud to be part of that. I think the insights that I bring
    have allowed me to work very well with our career staff to
    continue to serve not only USDA, but Congress, as well.
        Senator Stabenow. Thank you.
        We have a lot of work still to implement the farm bill. We
    look forward to continuing to work with you on that. That is
    obviously incredibly important that we get that right. We put a
    lot on the USDA's plate and I think they are moving forward
    very well on all of it.
        But, there are new things, or old things that come back,
    and one of those is country of origin labeling, that is one of
    the most challenging issues, I think, now, given the decision
    that we have to deal with. I think, as we look at solutions--I
    have been focused on this and I know the Chairman has for the
    last couple of years, looking at how we can find the right
    balance for U.S. producers and meet our global obligations and
    so on.
        Will you commit to work with us as we develop a solution
    that can both pass the Senate, but also is responsible in terms
    of addressing the various needs of our producers and consumers?
        Mr. Prieto. Again, to echo the Secretary, we remain
    committed to working with Congress to address the particular
    issues that are raised by the recent decision and we will
    continue to do so.
        Senator Stabenow. Thank you, Mr. Chairman.
        Chairman Roberts. Well, thank you for that excellent
    question, Senator, and thank you for your response, sir. We
    have to fix this situation so we are WTO compliant. We just
    have to do it, but we have to do it the right way and we have
    to have a bill that will pass the Senate.
        Senator Boozman.
        Senator Boozman. Thank you, Mr. Chairman, and thank you
    very much for being here and your willingness to serve.
        This is such an important position, and I know that in the
    future, you are going to face some really difficult challenges,
    as has been brought up.
        One thing that I would really ask you to remember, your
    talk, your introduction was very eloquent and I enjoyed hearing
    about your family, but it is so important to remember that,
    being in this position, that you are going to represent real
    people, real ranchers, real farmers, the type of people that
    you were raised with and is still part of your family. Again,
    it is just so important to use the power of the office that you
    will have for good.
        I have been disappointed, as well, with the
    administration's approach with the waters of the United States.
    How will you ensure that the EPA takes into account concerns
    that farmers and ranchers have in their methodology?
        Mr. Prieto. Thank you for that question, Senator. I think
    we will continue to do so in the preparation of the rule.
    Again, USDA served in a consulting rule to ensure that the
    interest of the--agricultural interests were considered. It is
    something that we at OGC and the Department, again, take very,
    very seriously. We will continue to serve in that role in that
    particular matter to ensure that it is with clarity, but also
    to ensure that the stewardship of many of the rural community
    ranchers, farmers, as they relate to those issues are also
    reflected. I understand the incredible responsibility. I also
    understand who we represent and we will continue to serve in
    that capacity. I am committed to doing so.
        Senator Boozman. Well, again, thank you very much for your
    willingness to serve, and I yield back, Mr. Chairman.
        Chairman Roberts. Senator Klobuchar.
        I might tell my colleagues, the vote has started. We have
    about ten minutes left, but please.
        Senator Klobuchar. Okay. I guess I will be quick so we can
    get to other Senators, as well. So, thank you.
        Thank you very much, and I know that you have had a lot of
    experience, including in the Environmental and Natural
    Resources Division of the Justice Department, the EPA, and the
    Department of Health and Human Services. So, I know Senator
    Roberts raised this issue about the waters of the U.S. rule,
    and we have had two experiences now in the last year. I
    actually like the EPA Administrator very much. I think she is
    trying to do some good things and has been really good at
    reaching out.
        However, on both the waters of the U.S. rule and then the
    flood proposal on the biofuels that came out, from our
    perspective, a lot of the farmers in my state just feel like
    they have not had a lot of say over how this works and there
    have clearly been some, especially with the waters of the U.S.,
    some--there has not been enough input in terms of from the
    beginning, before the rule came out, as there was with the
    biofuels rule, also, there was not input, from my perspective.
    How can you better coordinate, with your experience with the
    EPA, on issues that affect farmers and ranchers?
        Mr. Prieto. Again, thank you, Senator, and I understand the
    importance of my role to ensure that we are coordinating. I am
    committed, again, to continue doing what we are doing. If
    confirmed, I will continue that OGC serves in that role, that
    we are raising the issues of importance in any of the processes
    that we are involved in, and that is definitely one that we are
    involved in. We will continue to serve in that role to ensure
    that those interests are considered.
        Senator Klobuchar. Thank you very much.
        I have also been working hard on two other issues. One is
    trade with Cuba. I am leading the bill to lift the trade
    embargo. As you know, we have got a lot of exports going on
    under the humanitarian exemption. Minnesota alone is $20
    million. On the bill with me are Senators Enzi and Flake, Paul,
    Stabenow, Leahy, Durbin, and other Senators have been added
    this week. Does the U.S. discriminate against other trading
    partners like we do Cuba? How do you see the Agriculture
    Department working better in terms of trying to make sure that
    we use some of the trade promotion monies and other things to
    further this effort?
        Mr. Prieto. Senator, that is something that, again, USDA
    obviously has a significant international presence in terms of
    what we have done----
        Senator Klobuchar. They have been very--Secretary Vilsack
    has been incredibly supportive in terms of trying to get this
    done.
        Mr. Prieto. We will continue to do so if committed, and I
    continue to be committed to working with you on these
    particular issues. They are of incredible importance to USDA
    and we are committed to working with you, with your staff on
    these issues.
        Senator Klobuchar. Okay. Thank you.
        Last, just more to call your attention, because the USDA
    has helped me with this in the past, particularly Secretary
    Vilsack, we have too many wolves in Minnesota and we actually
    went through a process to de-list the wolves. It was
    successful. We got it done. Our state was managing them. Then
    not all the groups, not the Wildlife Federation, not a number
    of them, sort of were letting it be, but then two groups
    brought--maybe others, but two groups brought a suit, the
    Center for Biological Diversity and also the Humane Society,
    once again, on the de-listing, and now we are no longer able to
    manage the wolves. We have about double the number of wolves we
    are supposed to have in Minnesota.
        I believe in the Endangered Species Act, I truly do, but
    this has gone on again, and so I am just warning you that this
    issue will probably be coming across your desk, only because we
    are out of options here. Obviously, Interior is appealing the
    decision, which we appreciate, but this is--it just keeps
    going, and I wish these groups that do respect the Act would
    understand that at some point, it is not supposed to be used to
    keep species in the--under the auspices of the Act forever. It
    is supposed to be used to make sure we have enough of a
    species, and then at some point, they get out from under the
    Act. But, that is not how they are using the Act, given the
    numbers.
        The other thing you need to know is one of the reasons
    given in the court decisions was that we did not have a
    management plan for all of Minnesota. Well, that is because the
    wolves are not supposed to live in all of Minnesota. They are
    supposed to live in Northern Minnesota. They are not supposed
    to be at the Mall of America or the Mayo Clinic.
        So, as a lawyer, when you look at this, I hope you can
    examine this, as well, because it is important to farmers and
    ranchers. We have got a lot of, just in the last week, a number
    of pets that were eaten by these wolves. Some of them are sick
    and they are running around chasing snowmobiles. It sounds
    small, but we are concerned about it. While wolves do not
    necessarily prey on people at all, when they are sick and would
    naturally not still be around, they do. So, we have had someone
    bitten on the face and we are getting very concerned about it
    because our wolves are around cabins. They are not just out in
    ranches like they might be out in the western part of our
    country. Okay?
        Mr. Prieto. Thank you, Senator.
        Senator Klobuchar. Thank you.
        Mr. Prieto. Thank you very much for that information.
        Chairman Roberts. Senator Tillis.
        Senator Tillis. Thank you, Mr. Chair.
        Senator Klobuchar, you may be surprised that we have a red
    wolf problem in North Carolina, so I understand some of the
    concerns.
        I am going to be very brief. First, welcome to your family
    and thank you for the very articulate opening statements.
        My question has more to do with--I completely agree with
    everything the Chairman said about the EPA rulemaking process
    on WOTUS. I think it is wrong on several levels. I spent Monday
    with a farmer down in North Carolina--by the way, we are the
    sweet potato capital of the world. But, repeatedly, they talk
    about regulations that maybe at one point in time made sense,
    but now they have just been layered and layered and layered.
    There is this ratchet effect with regulations that it seems
    like no agency ever really goes back and cleans them up, maybe
    nipping around the edges.
        So, what role do you think the Department can play in
    looking at not only the regulations you are responsible for,
    but the multiple regulatory agencies that come out to a farm?
    Frequently, multiple agencies are involved in pushing the same
    regulations, not unlike the regulatory landscape in the
    financial markets.
        What can we do, or what role do you think the Department
    can play to go back and say, is this rational? Is there a way
    to make it more efficient and less intrusive and still achieve
    the regulatory outcomes? We may disagree that some regulations
    may or may not be necessary, but we can always agree to
    evaluate how we can be doing a better job.
        Is there a role to be played by the USDA to help our
    farmers out and still get the regulations right?
        Mr. Prieto. Senator, thank you very much for that question.
    I believe it is, and it is one that we continue to play. As I
    indicated, we very strongly play a consulting role to ensure
    that the interest of USDA, the interest of the agricultural
    communities are reflected, and I am committed to continuing to
    play that role. It is a role that the Secretary plays and it is
    a role that we will continue to play to ensure that the
    interest of the communities that you have described are
    reflected, and I think that is what, hopefully, I bring in
    terms of working with the federal government, understanding
    that role and to do it as effectively as possible.
        Senator Tillis. Thank you. In the interest of time, I am
    just going to submit other questions. I look forward to
    supporting your confirmation.
        Mr. Chair, I would like to say that I stand proud here with
    you as the lone member left.
        [Laughter.]
        Chairman Roberts. Well, Marines are used to that.
        Mr. Prieto, thank you for your time and willingness to be
    considered, for your service at the Department as the General
    Counsel. We look forward to that.
        As you know, we are not voting on your nomination today,
    but I promise you we will work to schedule a business meeting
    as expeditiously--hopefully off the floor--as possible for a
    committee vote. To that end, I ask members to submit any
    additional questions for the record by 5:00 tomorrow, Friday,
    May 2.
        I just want to say one thing with regard to Senator
    Klobuchar's remark about farmers in her State concerned about
    not being heard on this waters of the U.S. situation. They are
    being heard. We had a hearing right here in this room. This
    place was packed with people, and we had representatives from
    all over the country expressing their concern about this rule.
        We heard them nine months ago when we were talking with
    nine Senators, a bipartisan group, with the Administrator of
    EPA, Gina McCarthy. I pointed out there were two lines in the
    legislation, ``Normal cropping operations are exempted,'' and
    then we went into 88 pages in the Federal Register where still
    people are trying to figure it out.
        Every farm organization, every farm group, every commodity
    group, everybody involved in agriculture, every small community
    sent in their commentary. So, yes, we are heard, but they did
    not listen. They stacked the deck, and they stacked the deck in
    a way that I think could have broken federal law. As you can
    tell, I am pretty upset about it.
        So, we are going to continue our oversight responsibility.
    I credit Senator Jim Inhofe for asking for some consideration
    with regards to an investigation by the GAO. We will be
    following that closely. He has the jurisdiction with regards to
    legislation, but we set the predicate, and I want everybody in
    this room to understand that farmers were heard. The fact that
    EPA stacked the deck against them, this is--it is not only
    disingenuous, it tears at the very basic commentary system that
    we have in this country were Congress--or some agency with an
    agenda passes a rule, and then we have a commentary period. Why
    even have a commentary period if we are not going to listen?
    Further observations, I will offer, if not.
        But, the committee stands adjourned.
        [Whereupon, at 10:33 a.m., the committee was adjourned.]

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                                A P P E N D I X

                                  MAY 21, 2015

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                       DOCUMENTS SUBMITTED FOR THE RECORD

                                  MAY 21, 2015

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                             QUESTIONS AND ANSWERS

                                  MAY 21, 2015

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