[Senate Hearing 115-216]
[From the U.S. Government Publishing Office]
S. Hrg. 115-216
NOMINATIONS OF THELMA DRAKE, JEFFREY NADANER, AND SETH APPLETON
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON
BANKING,HOUSING,AND URBAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED FIFTEENTH CONGRESS
SECOND SESSION
ON
NOMINATIONS OF:
Thelma Drake, of Virginia, to be Administrator of the Federal Transit
Administration
__________
Jeffrey Nadaner, of Maryland, to be Assistant Secretary of Commerce for
Export Enforcement
__________
Seth Appleton, of Missouri, to be Assistant Secretary of Housing and
Urban Development for Policy Development and Research
__________
APRIL 17, 2018
__________
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COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
MIKE CRAPO, Idaho, Chairman
RICHARD C. SHELBY, Alabama SHERROD BROWN, Ohio
BOB CORKER, Tennessee JACK REED, Rhode Island
PATRICK J. TOOMEY, Pennsylvania ROBERT MENENDEZ, New Jersey
DEAN HELLER, Nevada JON TESTER, Montana
TIM SCOTT, South Carolina MARK R. WARNER, Virginia
BEN SASSE, Nebraska ELIZABETH WARREN, Massachusetts
TOM COTTON, Arkansas HEIDI HEITKAMP, North Dakota
MIKE ROUNDS, South Dakota JOE DONNELLY, Indiana
DAVID PERDUE, Georgia BRIAN SCHATZ, Hawaii
THOM TILLIS, North Carolina CHRIS VAN HOLLEN, Maryland
JOHN KENNEDY, Louisiana CATHERINE CORTEZ MASTO, Nevada
JERRY MORAN, Kansas DOUG JONES, Alabama
Gregg Richard, Staff Director
Mark Powden, Democratic Staff Director
Elad Roisman, Chief Counsel
Matt Jones, Counsel
Elisha Tuku, Democratic Chief Counsel
Laura Swanson, Democratic Deputy Staff Director
Beth Cooper, Democratic Professional Staff Member
Colin McGinnis, Democratic Policy Director
Homer Carlisle, Democratic Professional Staff Member
Dawn Ratliff, Chief Clerk
Cameron Ricker, Deputy Clerk
James Guiliano, Hearing Clerk
Shelvin Simmons, IT Director
Jim Crowell, Editor
(ii)
C O N T E N T S
----------
TUESDAY, APRIL 17, 2018
Page
Opening statement of Chairman Crapo.............................. 1
Opening statements, comments, or prepared statements of:
Senator Brown................................................ 2
NOMINEES
Thelma Drake, of Virginia, to be Administrator of the Federal
Transit
Administration................................................. 4
Prepared statement........................................... 23
Biographical sketch of nominee............................... 24
Responses to written questions of:
Chairman Crapo........................................... 56
Senator Brown............................................ 57
Senator Heller........................................... 61
Senator Menendez......................................... 61
Senator Cortez Masto..................................... 63
Senator Jones............................................ 65
Jeffrey Nadaner, of Maryland, to be Assistant Secretary of
Commerce for Export Enforcement................................ 4
Prepared statement........................................... 36
Biographical sketch of nominee............................... 37
Responses to written questions of:
Senator Brown............................................ 66
Senator Toomey........................................... 68
Senator Sasse............................................ 68
Senator Menendez......................................... 70
Senator Cortez Masto..................................... 71
Seth Appleton, of Missouri, to be Assistant Secretary of Housing
and Urban Development for Policy Development and Research...... 6
Prepared statement........................................... 47
Biographical sketch of nominee............................... 49
Responses to written questions of:
Senator Brown............................................ 72
Senator Menendez......................................... 74
Senator Cortez Masto..................................... 76
Senator Jones............................................ 81
Additional Material Supplied for the Record
Documents submitted in support of the nomination of Seth Appleton 82
(iii)
NOMINATIONS OF THELMA DRAKE, JEFFREY NADANER, AND SETH APPLETON
----------
TUESDAY, APRIL 17, 2018
U.S. Senate,
Committee on Banking, Housing, and Urban Affairs,
Washington, DC.
The Committee met at 10 a.m., in room SD-538, Dirksen
Senate Office Building, Hon. Mike Crapo, Chairman of the
Committee, presiding.
OPENING STATEMENT OF CHAIRMAN MIKE CRAPO
Chairman Crapo. Good morning. This hearing will come to
order.
This morning, we will consider the nominations of three
more individuals to serve in key leadership posts in the
Administration.
Welcome to all of you, and congratulations on your
nominations to these very important offices.
I see friends and family behind you today, and I welcome
them here as well.
The nominees before us are Thelma Drake, to be
Administrator of the Federal Transit Administration; Jeffrey or
``Jeb'' Nadaner to be Assistant Secretary of Commerce for
Export Enforcement; and Seth Appleton to be Assistant Secretary
of Housing and Urban Development for Policy Development and
Research.
Each of these nominees will play an important role in
shaping national policy and advancing economic opportunity for
millions of Americans, and each nominee brings unique
experience and expertise to the table.
Ms. Drake has dedicated a significant amount of her career
to infrastructure, including public transportation. In addition
to her role at the city of Norfolk's Public Works Department,
she previously served as the Director of the Virginia
Department of Rail and Public Transportation, overseeing public
transportation priorities.
During her time in the U.S. House of Representatives, Ms.
Drake served on the Transportation and Infrastructure
Committee. Her previous infrastructure experience provides her
with an understanding of the role that transit plays in
comprehensive transportation networks.
Mr. Nadaner has spent more than two decades focused on U.S.
national security, industrial technology, and Federal legal
compliance.
In the private sector, Mr. Nadaner held multiple leadership
positions at Lockheed Martin and several small businesses,
including Lockheed's Vice President of Engineering and
Technology and Director of Business Development and Strategy.
Mr. Nadaner also served in numerous positions at executive
agencies, including Deputy Assistant Secretary of Defense for
Stability and Operations Partnership Strategy, multiple senior
positions at the State Department, and as an attorney at the
Department of Justice. He is well equipped to lead Export
Enforcement for the Bureau of Industry and Security.
Mr. Appleton has spent most of his career on Capitol Hill,
where he has developed expertise in housing policy and
financial services issues. As a chief of staff to
Representative Blaine Luetkemeyer for nearly a decade, Mr.
Appleton played a key role in the bipartisan housing reform
called the Housing Opportunity Through Modernization Act, or
``HOTMA'', which passed in 2016.
Mr. Appleton's nomination has been met with bipartisan
support from Senators McCaskill and Blunt and the entire
Missouri congressional delegation, which speaks to his strong
track record of working across the aisle to get things done.
Once again, congratulations to all of you on your
nominations to these very important offices, and thank you for
your willingness to serve.
Senator Brown.
OPENING STATEMENT OF SENATOR SHERROD BROWN
Senator Brown. Thank you, Mr. Chairman, for holding today's
hearing on the nominations of Thelma Drake and Jeffrey Nadaner
and Seth Appleton. Welcome to all three of you. I look forward
to hearing your views. I want to welcome your family and guests
to the Committee. So thank you for your willingness to serve.
Ms. Drake comes to us with a very important qualification.
She was born and raised in Elyria, Ohio, only about 5 miles
from where I lived for a decade, before moving to Virginia,
raising a family, entering public service. I am pleased she
wants to bring her experience and her Ohio upbringing--her
experience in Congress and her Ohio upbringing and her
Virginia's Department of Rail and Public Transportation service
to the Federal Transit Administration.
Ohioans take more than 325,000 trips on public
transportation every weekday. We need a strong Federal partner
to help transit riders enjoy a faster and safer ride to work
and school.
I am hopeful we can move faster in your appointment than
this Senate, this Committee, and the U.S. Senate moved on your
predecessor's 2014 appointment, Therese McMillan. I think she
was qualified. I think you are qualified. I am hopeful we can
actually put partisanship aside, unlike what happened a few
years ago. I am also hopeful we can do what we should, as Mr.
Nadaner's appointment reminds me on the Export-Import Bank.
The Administration's record on transit is disappointing.
Ms. Drake and I had a discussion about that. I think she wants
to do the right thing. I am hopeful the Administration allows
her to.
Its past two budgets have proposed eliminating FTA's
Capital Investment Grants programs and the multimodal TIGER
program. In the latest round of TIGER awards, DOT nearly
eliminated transit projects from the program.
The President's infrastructure proposal was also a
disappointment. It contains no stable funding for the Mass
Transit Account. We cannot rebuild our transportation
infrastructure by passing the costs onto cities and counties
through Trump tolls and through local tax hikes.
Despite these disappointments, I want to work with the
Administration and Republicans in the Senate to advance a real
infrastructure program and an infrastructure package with real
dollars. I look forward to hearing Ms. Drake's priorities,
including with respect to safety oversight.
I want to welcome Mr. Nadaner, the nominee for Commerce
Assistant Secretary for Export Control Enforcement. Given
increasing efforts by Russia, China, and others to steal
sensitive technologies from U.S. companies, enforcement of our
export control regime, as you know, is critical.
That is especially true as the Committee moves forward to
reform CFIUS, which must be integrated with our export control
system.
I would like to welcome Mr. Appleton to the Committee. If
confirmed, he will help guide HUD's research efforts, which
provide data and evaluations to policymakers and researchers
and practitioners and housing market participants and the
public.
We face many housing challenges as a Nation, from our deep
shortage of affordable housing to our ongoing work to realize
the promise of the Fair Housing Act after 50 years. I hope you
are committed to the Fair Housing Act. I am not sure that your
bosses working up the chain are.
Unbiased research can help us overcome these challenges and
inform HUD's daily operations, best practices in the field, and
evidence-based policy.
I look forward to hearing from Mr. Appleton about his
approach to this critical function at Housing and Urban
Development.
Thank you.
Chairman Crapo. Thank you, Senator Brown.
Will the nominees please rise and raise your right hands.
Do you swear or affirm that the testimony you are about to give
is the truth, the whole truth, and nothing but the truth, so
help you God?
Ms. Drake. I do.
Mr. Nadaner. I do.
Mr. Appleton. I do.
Chairman Crapo. And do you agree to appear and testify
before any duly constituted committee of the Senate?
Ms. Drake. I do.
Mr. Nadaner. I do.
Mr. Appleton. I do.
Chairman Crapo. Thank you. You may be seated.
Each of your written statements will be made a part of the
record in their entirety, and as I am sure you have been
advised, we ask you to keep your oral comments or verbal
comments to 5 minutes, so we have time for questions from the
Committee. Before you begin, I invite you, if you choose to, to
introduce your family that is in attendance, and, Ms. Drake, we
will start with you. You may proceed.
STATEMENT OF THELMA DRAKE, OF VIRGINIA, TO BE ADMINISTRATOR OF
THE FEDERAL TRANSIT ADMINISTRATION
Ms. Drake. Thank you, Mr. Chairman.
I would like to introduce my husband to you, Ted Drake from
Norfolk, Virginia. Thank you.
Chairman Crapo. You may proceed with your statement.
Ms. Drake. Thank you, Mr. Chairman.
Chairman Crapo, Ranking Member Brown, and distinguished
Members of the Committee, thank you for the opportunity to
address you today and to answer your questions.
I am honored to be nominated to the position of
Administrator of the Federal Transit Administration. I would
like to thank President Trump and Secretary Chao for their
support and their belief in me.
I view transit as a key component of a successful
transportation network. I realize that needs vary across the
country, and I look forward to engaging in the various
discussions with stakeholders as to how construct, maintain,
and operate successful systems.
In Congress, I served on the House Transportation and
Infrastructure Committee, and while serving in the Virginia
General Assembly, I was a member of the House Transportation
Committee. I have also served as a member of the Virginia
Commonwealth Transportation Board.
After leaving Congress, I served as Director of the
Virginia Department of Rail and Public Transportation. While
Director, I helped implement new processes and performance
metrics that enhanced accountability and incentivized
performance and efficiency for State transit systems.
We also created a new model for funding capital investments
that placed an emphasis on rolling stock. My work included
involvement with Virginia's transit systems; the Washington
Metropolitan Area Transit Authority; and Virginia's commuter
rail system, the Virginia Railway Express.
Secretary Chao and I share the same priorities for
transportation. If confirmed, my top priorities will be the
safety of our transit systems and the traveling public,
infrastructure support and investment, and preparing for the
future through innovation.
Again, thank you for your time and consideration of my
nomination. I would be honored to work with each of you on your
priorities and to be an advocate for transit nationwide.
Thank you, Mr. Chairman.
Chairman Crapo. Thank you.
Mr. Nadaner.
STATEMENT OF JEFFREY NADANER, OF MARYLAND, TO BE ASSISTANT
SECRETARY OF COMMERCE FOR EXPORT ENFORCEMENT
Mr. Nadaner. I would like to introduce my dad, who is in
his 85th, came from New York, and my wife and my three kids.
Chairman Crapo. Welcome to all of you.
Mr. Nadaner. Thank you, sir.
Mr. Chairman, Ranking Member Senator Brown, Senators of
this Committee, with reverence for our Constitution, I come
before this Committee to be considered for Assistant Secretary
of Commerce for Export Enforcement. I express my appreciation
to Secretary Ross and President Trump.
I am the child of World War II refugees. My parents brought
me up with a gratitude for our Nation's incomparable freedoms
and exceptional opportunities for economic dignity. They also
raised me with an appreciation for the ordinary women and men
who day in and day out, with little note but much sacrifice,
ensure our safety and uphold our laws.
The Assistant Secretary of Commerce for Export Enforcement
and the Bureau of Industry and Security work to ensure that our
adversaries do not get sensitive technologies. Effective
harnessing of the Department's capabilities is indispensable to
preventing the diversion of dual-purpose technologies to our
enemies who may threaten our military, our homeland, and our
citizens.
Enforcement of the law is a sine-qua-non for protecting our
Nation's security and the U.S. industrial defense base and its
intricate supply chains. Robust enforcement is central to
ensuring that congressionally mandated sanctions and anti-
boycott laws have effect.
If confirmed, I will bring to bear more than two decades of
experience in national security, industry, and Federal law from
the vantage points of both the public and private sectors.
My current duties with the U.S. Marine Corps center on
U.S.-foreign technology competitions, cyber and informational
threats, and military and security operations.
Earlier at Lockheed Martin and in small businesses, I
concentrated on aerospace and defense technology; mergers,
acquisitions, and joint ventures; and U.S. procurements and
exports. I have managed hardware and software R&D portfolios
and worked on improving supply chains.
Integral to my undertakings, I was operating under the
Commerce- and State Department-led export control systems and
anti-boycott and anti-corruption laws.
Before that, while Deputy Assistant Secretary of Defense, I
oversaw exports of U.S. military equipment and services across
the globe. These transfer too involved compliance with the U.S.
export control systems. In that role, I had the honor of
working with both sides of the aisle in the Senate and the
House to produce bipartisan legislation.
Teaming with the civil service, I developed policies,
advanced interagency decisions, and joined efforts with the
intelligence community. I developed rich experience negotiating
with foreign countries on technology uses.
Among my highest privileges has been to serve as the U.S.
Department of Justice trial attorney. I represented an array of
Federal agencies in litigation arising out of their law
enforcement, administrative, and regulatory activities. I
understand the frameworks under which our officers and agents
act. I have seen crimes' effects. I have conducted
investigations and enforced subpoenas, and I have filed suits,
negotiated settlements, and brought cases to judgment.
If confirmed, I will enforce U.S. export controls,
sanctions, embargos, and anti-boycott laws. I will advance
policies that safeguard American jobs, technologies, and
industries that form our industrial base.
Mr. Chairman, Senator Brown, Senators of this Committee, I
will be honored to answer any questions you may have. Please
accept my appreciation for your consideration.
Chairman Crapo. Thank you.
Mr. Appleton.
STATEMENT OF SETH APPLETON, OF MISSOURI, TO BE ASSISTANT
SECRETARY OF HOUSING AND URBAN DEVELOPMENT FOR POLICY
DEVELOPMENT AND RESEARCH
Mr. Appleton. Thank you.
Chairman Crapo, Ranking Member Brown, and distinguished
Members of this Committee, thank you for convening this
hearing. It is an honor to appear before you as the nominee to
be Assistant Secretary of Housing and Urban Development for
Policy Development and Research.
As a former staffer in the House of Representatives, I have
sat along the wall behind the dais but never at the witness
table, and to be sure, it is a humbling experience, as I have a
great deal of respect for this institution and its important
role in confirming nominees for service in the executive
branch.
Before I begin, I would like to recognize my family. My
wife, Brooke, is here today. In typical Capitol Hill fashion,
we actually met working as colleagues in the House before we
got married.
My mother, Susan, and my father, Bob, are here today from
St. Louis. My mom has been a law professor for the last 43
years and from a very young age taught me the value of
research.
My brother, Jesse, is here from St. Louis also, and on
Brooke's side of the family are my in-laws, Barb and Tim Shupe
from Stanberry, Missouri.
Watching the broadcast at home in St. Louis are my sister-
in-law, Ali, my nephew, Bennett, who was supposed to be here
for his first congressional hearing but got sick, and my
grandmother, Winifred Frelich, who just celebrated her 93rd
birthday on Friday and reminded me that she brought me to the
Senate for the very first time during a spring break nearly 30
years ago.
In addition to my family, I would like to thank Senators
Blunt and McCaskill as well as the entire Missouri
congressional delegation for supporting my nomination,
Republicans and Democrats alike.
Chairman Crapo. It looks like you got a lot of folks here
or watching, and the pressure is on.
Mr. Appleton. It is, indeed, sir.
[Laughter.]
Mr. Appleton. HUD's Office of Policy Development and
Research plays a critical role for the entire Department,
coordinating recommendations on policy matters, overseeing
research projects and demonstrations, disseminating economic
information, and managing international programs and
philanthropic initiatives. It is on the cutting edge of
identifying new trends and finding innovative solutions to the
housing and community development challenges of our day.
As such, the Assistant Secretary must be familiar with the
public policy development process, understand the importance of
sound research in formulating evidence-based policy solutions,
and provide effective leadership, management, and budget
oversight to the PD&R team.
If confirmed, I am committed to serving as a partner to
this Committee and the Congress, which has long been involved
in shaping PD&R's research and policy work.
I believe I am well suited to serve in this position based
on my public policy and management experience. Following my
graduation from Stanford, I worked in the U.S. House for 13
years, first as a legislative staffer, then as a chief of
staff. As a legislative staffer, my portfolio included housing
policy, and I later had the opportunity to really focus in on
this as chief of staff to Congressman Luetkemeyer in his role
as Chairman of the Subcommittee on Housing and Insurance.
An example of the policies we worked on is H.R. 3700, the
Housing Opportunity Through Modernization Act, or HOTMA, which
passed both the House and Senate unanimously and was signed
into law by President Obama in 2016.
In addition to focusing on policy matters, I gained
valuable management experience in the course of building,
organizing, and leading a team of staffers in Missouri and
Washington. I worked to ensure our entire team was involved in
a collaborative process to craft sound initiatives, which
included everything from generating ideas to reviewing research
to developing partnerships and building coalitions. All of this
was done with one underlying objective in mind: to improve the
lives of the people we served.
In July 2017, I left my position in the House to join HUD
as General Deputy Assistant Secretary and Acting Assistant
Secretary in the Office of Congressional and Intergovernmental
Relations. Besides affording me the opportunity to work with
many Senators and staff in this room, this role also allowed me
to interact with all of the Department's program and support
offices, across silos, including PD&R.
Prior to being nominated, I worked with PD&R's staff on a
variety of issues, including grants, university partnerships,
technical assistance, and disaster response.
PD&R has an outstanding team of dedicated civil servants.
If confirmed, I very much look forward to working with that
team, advocating for its work, and ensuring that its products
meet Congress' intent and are utilized for the betterment of
those served by HUD.
Our policy solutions should be evidenced-based, backed by
sound data, and tested by well-designed demonstrations and
thorough research.
In closing, I believe my housing policy and management
experience in the legislative and executive branches has
prepared me well to serve as Assistant Secretary. If confirmed,
I look forward to working with this Committee to advance
policies that address the priorities and needs of the American
people.
I would be pleased to answer your questions and honored to
earn your support. Thank you.
Chairman Crapo. Thank you, Mr. Appleton.
Let me start out with questions with you, Ms. Drake. A key
priority of this Administration is to reduce regulatory
burdens, and in the area of transit, often what we see is the
smallest and most rural transit agencies are burdened the most
by regulations that are meant for the larger urban systems.
Can you assure the Committee that you will provide careful
consideration for the effects of regulations on small and rural
transit agencies?
Ms. Drake. Thank you, Mr. Chairman.
Mr. Chairman and Members of the Committee, as Director of
the Department of Rail and Public Transportation, I worked with
Virginia's 44 transit systems, 20 of which were rural and 6
were small urban. I have visited them. I have toured their
operation. I have seen how hard they work. I have been at their
ribbon-cuttings. I have talked to their riders, and I share
your concern about our rurals. They cover very large areas,
often are very economically challenged, smaller populations,
and I can certainly confirm to you that if--if confirmed, I can
commit to you that I will treat all projects fairly and in
compliance with the law. And I appreciate your concern for the
rurals as well as I saw in Virginia.
Chairman Crapo. Well, thank you for that assurance.
Mr. Nadaner, as you know, we are intensely working right
now on the CFIUS legislation, and as I have learned more and
more as we get into this process, export control is one of the
key aspects of assuring the security of the United States and
sensitive products.
As you look to your new role, what do you see as the main
challenges to export control enforcement?
Mr. Nadaner. Mr. Chairman, I believe it is important that
the Committee is considering CFIUS. It has been a while, and
the world has changed a bit since the last time it did.
But I would say one of the strengths for the American
system has been a very strong CFIUS process for inbound
investment and strong export controls for export technology,
which can occur without the technology leaving the United
States if it touches foreign hands.
I believe Secretary Ross has made it a goal to say that as
much as we have done on export enforcement, we need to do more.
We need to make violations of these laws which can harm
Americans and cause loss of American jobs mean something.
Yesterday, we saw with ZTE, there is more that can be done.
So, if confirmed, my goal will be to look at resources,
authorities, and responsibilities and try and make the right
priorities so that we have meaningful enforcement.
Chairman Crapo. Well, thank you. This is obviously a matter
of making sure we draw the lines in the right ways and in the
right places, to assure that the robust development of emerging
technologies takes place in the United States and to assure
that we do not allow our technologies that are sensitive to be
either exported or developed and taken over in the United
States through incoming investments.
I appreciate your attention to that.
Mr. Appleton, as you know, HUD's Office of Policy
Development and Research plays a key role in disaster relief
efforts, including collecting information about affected areas,
assessing the damage, and making disaster recovery tools
available to the general public.
In light of the research natural disasters in 2017, can you
speak to any opportunities for PD&R to become more efficient or
to coordinate better with sister agencies to ensure that the
Government is able to rapidly respond to that type of crisis?
Mr. Appleton. Thank you for that question, Senator. This is
a very important topic.
In the aftermath of a disaster, PD&R relies upon data from
FEMA and the Small Business Administration to determine the
extent of unmet housing, business, and infrastructure needs in
the most impacted areas.
This partnership is strong and runs well, but it could
always be improved, and one thing that I would like to get over
the finish line is the completion of a data transfer tool that
would allow this information to come over seamlessly,
expeditiously, and accurately in order to deploy assistance in
a more rapid manner.
Chairman Crapo. Thank you very much.
I thank each of you for those answers.
Senator Brown.
Senator Brown. Thank you, Mr. Chairman.
Ms. Drake, since 1982, when President Reagan signed the law
that created the mass transit account, Congress has allocated a
minimum of 20 percent of new revenue deposited in the Highway
Trust Fund for public transportation. I fought to maintain that
principle in the FAST Act. We talked about that privately.
I would like you to answer the question: Can we count on
you as FTA Administrator to fight for at least that 20 percent
of fair share of funding for transit in reauthorization or in
any infrastructure project?
Ms. Drake. Senator, thank you.
As you know, I was not at FTA, not part of the discussions
as to the funding that you are referencing.
I can commit to you that I will be very engaged in the
discussions, will be in communication with you, and look
forward to implementing the funding according to the law.
Senator Brown. Can you not commit to the 20 percent that
has been in bipartisan since the Reagan years?
Ms. Drake. Senator, I cannot do that at this time. I would
need more information, more review, more discussion about it,
and of course, discussions with you.
Senator Brown. Well, I appreciate that and your
straightforwardness, but the information is we have done it for
30 years, and it has worked. And only recently have there been
some efforts by some, including on this Committee, to drop that
number below 20, but I am hopeful that you will, through this
process--I mean, I want to vote for you, but I very much want
that 20 percent. I want to hear the FTA Administrator say,
``Yes, we will follow the tradition of 20 percent.''
Ms. Drake. Well, Senator, at the risk of sounding
redundant, I really need to have more information, more review,
and more discussions with you.
Senator Brown. OK, OK.
Ms. Drake. And thank you. And I do hope that you realize
that I truly am a transit advocate.
Senator Brown. OK, OK. I believe you are.
DOT gave out just two transit awards in the last round of
TIGER funding, shutting out nearly every transit application.
Should transit projects have a fair chance at TIGER funding?
Ms. Drake. Senator, again, not having been at FTA, I am not
part of those discussions and certainly cannot explain any of
those do you, but I can tell you, again, I intend to be an
advocate for transit. And I will be part of those discussions
in the future.
Senator Brown. OK.
Mr. Appleton, for several years, HUD's discretionary
research priorities have been driven by the Research Roundup.
HUD developed this plan in consultation with stakeholders to
identify research questions that are most important to housing
and community development in the future. Do you intend to use
the Research Roundup as a guide for research projects?
Mr. Appleton. Absolutely. Right now, we are in the middle
of the 2014 to 2018 research roadmap. This covers a 5-year
period, and it covers--the priorities outlined are housing
affordability, health, disaster resiliency, a number of really
important things that I want to continue.
As we build the next one, once the 2018 roadmap ends, I
will absolutely be consulting with Congress and stakeholders,
academics, practitioners, to build that roadmap going forward.
Senator Brown. OK. Thank you for that.
And you, I assume, will be getting the input from
stakeholders as we do this?
Mr. Appleton. Absolutely.
Senator Brown. Thank you.
For years--I am back to Ms. Drake. For years, this
Committee has had a strong bipartisan commitment to safety
oversight, maybe less today with the rhetoric that surrounds
our Government the last few years, especially the Chairman's
question to you about regulatory burden.
Regulatory burden to some are safety rules to others and
consumer protections and food safety, and some will call that
regulatory burden. Others will call it public safety.
I have two questions for you on safety. Will you be
proactive in using your authority to improve safety standards
in the transit industry and to ensure that states are providing
robust oversight of real transit systems?
Ms. Drake. Senator, safety is my top priority, as is
Secretary Chao's.
When I first began as Director of Department of Rail and
Public Transportation, it was only a few months after the very
tragic Fort Totten accident. I worked very closely with
Maryland with D.C. and, of course, with the Governor of
Virginia as well as the Governor of Maryland and the Mayor of
D.C. So I can commit that safety is a very top priority, and I
will do all in my power to make sure that the traveling public
and our transit systems are safe and well maintained.
Senator Brown. And that means proactive?
Ms. Drake. I will do all in my power that I can do.
Senator Brown. I am concerned that the States' oversight
agencies may not be planning to conduct regular unannounced
inspections as they ramp up oversight.
GAO recently noted the need for inspections too. Are
inspections a core element of an oversight program?
Ms. Drake. Senator, I do believe inspections are a core
oversight. Not being at FTA, I cannot describe to you how
things are being done, but I can commit to you that once
confirmed or if confirmed that I will do everything in my power
to make sure that the public is safe.
Senator Brown. Does that mean that--do you from your
transit history in Virginia is--do you believe that regular
unannounced inspections are a key part of this?
Ms. Drake. Senator, we worked very diligently on how to set
up an oversight committee that later morphed into going to FTA.
So I look forward to hearing what is taking place and how we
move forward to guarantee the safety of our systems.
Senator Brown. But you are not committing to this Committee
that part of oversight is to make unannounced inspections, to
make sure that rail cars and other public transit vehicles and
facilities are safe?
Ms. Drake. I do believe, Senator, that there should be
inspections of our system and not just waiting until there is a
tragedy to come in.
Senator Brown. The inspections you have--you are conflating
with--you are slicing pretty thin that inspections does not in
your mind mean unannounced inspections, regular unannounced
inspections?
Ms. Drake. Senator, I look forward to hearing more. I do
know there is a distinction between an inspection and an
investigation, and I do hope that there are investigations that
take place so that we prevent any accidents from happening.
Senator Brown. Well, I think inspections sound pretty
preventative. Investigations sound like something to happen at
Fort Totten. What did we do about it? It just seems to me I
hope you will carry out of here the interest of this Committee
that unannounced inspections are much more likely to result in
improvements to public safety than inspections that the transit
system is expecting you to--is scheduling and preparing for.
Ms. Drake. Thank you, Senator.
Chairman Crapo. Senator Menendez.
Senator Menendez. Thank you, Mr. Chairman.
Congresswoman, congratulations on your nomination.
I just want to ask you. You and I had a conversation in my
office. I appreciate you coming to visit. With reference to
Gateway----
Ms. Drake. Yes.
Senator Menendez. ----do you consider Gateway a project
that is nationally important?
Ms. Drake. Senator, this is a very important project. I
know it is very important to you, and I look forward to working
with you on the project.
Senator Menendez. OK. I appreciate that, but that is not
the question I asked you.
The question I asked you, do you consider Gateway a project
of national significance?
Ms. Drake. I think it is a very significant project,
Senator, and what I can commit to you is I would want to review
the project. I am hopeful at some point to see some of the
components of the project, schedule a briefing on the project,
so that I am much more engaged and involved with it. I----
Senator Menendez. This is a different answer that you gave
me in my office. In my office, you told me that, yes, this was
a nationally important--so something has happened between----
Ms. Drake. Yep.
Senator Menendez. ----your honest--I assume your honest
answer to me in my office and the answer I am getting here now.
Ms. Drake. Senator, I consider this a very significant
project.
Senator Menendez. OK. That is not the same as saying that
it is a nationally important project, which is what you said in
my office.
Let me ask you something--so evidently, you have been
instructed to say something different--for a new starts or core
capacity project, what is the minimum percentage of the total
project cost that a local sponsor must commit of their own
funding to earn a medium rating?
Ms. Drake. Senator, not being at FTA, I do not have access
to that information to answer in that detail that you are
asking.
I can say to you that I do think there should be a balance
between the Federal and the local commitments to a project.
Senator Menendez. Well, what do you think that should be?
Ms. Drake. Senator, I am happy to get back to you, if
confirmed to the position.
Senator Menendez. No, no, no, no, no, no, no. You came to
my office. Now you have changed your testimony here from what
you told me in my office about Gateway being a project of
national significance, and then we discussed about what should
be the percentage for a local share of any project.
The only way for anybody to understand whether their
project is being legitimately scored is understanding what the
ground rules are. So you do not have to be at the agency to
give me a sense of what your belief is, that a percentage
amount of--is it 10 percent? Is it 20 percent? Is it 50
percent? What is it?
Ms. Drake. Senator, my understanding is this project is
currently working through the process at FTA. I do not know the
details of it. I look forward to more.
Senator Menendez. I am not--Congresswoman, I am not talking
about this specific project.
My question in general was for a new starts or core
capacity project, whatever that project might be, what is the
minimum percentage of a total project cost that the local
sponsor must commit of their own funding to earn a decent
rating, a medium rating? I think that is a pretty
straightforward question in terms of what is your views.
If you are going to be the Administrator, what is your
views about what that should be?
Ms. Drake. Senator, I do not know the numbers for a low or
a moderate or a medium or a highly rated project, but I can
commit to you that I will get that information. I will be
briefed on it, and I am happy to get back with you, if I am
confirmed and able to have all that information to discuss it.
Senator Menendez. Well, I think the confirmation is going
to be in trouble, to be honest here, unless I can get better
answers.
If you do not have clear parameters, how can a local
project sponsor have faith that their projects are being judged
fairly? How can they have faith that their projects are judged
by objective standards and not by political whims?
And so I personally cannot vote for you if this is going to
be your set of answers, nor will I allow on the floor for you
to proceed without some clarity. And if we have to have a
debate as to why I hold that view, I am happy to do that.
Let me ask you this: How would you handle a situation in
which you or the staff at the FTA were instructed by anyone in
the Department of Transportation or the White House to reject a
downgrade on--to reject or downgrade a new starts application
for political reasons?
Ms. Drake. Senator, I am not at FTA, but what I can commit
to you is that I will treat all projects fairly and in
compliance with the law. I will have a review and happy to get
back with any of the Members----
Senator Menendez. That is not my question.
Ms. Drake. ----as to their projects.
Senator Menendez. That is not my question, Congresswoman.
So you are now at FTA, if confirmed, and you are instructed
by someone, the higher up at the Department of Transportation
or for that fact the White House, to reject or to downgrade new
starts applications for political reasons. What is your answer
to that request?
Ms. Drake. Senator, my answer is all projects will be
treated fairly and in compliance with law.
Senator Menendez. The answer should be ``No, I will not
reject or downgrade a project because you politically want it
so,'' and the fact that you cannot make that simple statement
is alarming to me.
Thank you, Mr. Chairman.
Chairman Crapo. Senator Warren.
Senator Warren. Thank you, Mr. Chairman.
We face many serious housing problems in this country.
Fifty years after the Fair Housing Act passed, housing
discrimination is rampant. Finding affordable housing is hard,
particularly for the poorest families. Victims of natural
disasters are struggling to rebuild their communities. HUD has
a very long to-do list.
Now, Mr. Appleton, you have been nominated to lead HUD's
Office of Policy Development and Research. That office collects
data about the housing problems American families face and
tries to test out possible solutions. This is one of the most
important jobs at HUD because the only way to fix hard problems
is to follow the evidence. So I want to explore how you will
approach your job.
Mr. Appleton, I understand that one of the areas your
office will look into is housing affordability; is that right?
Mr. Appleton. Yes, ma'am.
Senator Warren. Thank you.
As you know, HUD provides support to low-income families in
a couple of ways, including the Housing Choice Voucher Program.
Waiting lists for vouchers which limit rent to one-third of a
person's income are now sometimes years long before families
can get these.
In fact, the Office of Policy Development and Research, the
office that you would head up, has already found that fewer
than one in four people who qualify for HUD housing assistance
get it; is that right?
Mr. Appleton. Yes, ma'am.
Senator Warren. Yeah. Well, what that means is that three
in four who qualify do not get it, and many pay more than 50
percent of their incomes on housing. That leaves almost nothing
for food or shelter or child care or medical emergencies, and
families just cannot make the math work.
According to a new study, 2.3 million people were evicted
from their housing in 2016, but HUD is not even trying to meet
this need. HUD's 2019 budget requests cuts in funding for its
rental assistance program by 11 percent. Draft legislation
revealed that the White House was planning to raise rents and
impose work requirements on families who already receiving
housing support.
These changes are driven by politics, not by policy and not
by evidence. Experts say that the vast majority of residents
who receive housing assistance already work, if they can, and
that they still need help.
So if you are confirmed, you will be Ben Carson's principal
advisor on policy, on program evaluations, and on basic
research. Do you promise that you will accurately convey what
the data show and push for a proven evidence-based solution in
every conversation you have with him?
Mr. Appleton. Without question, yes.
Senator Warren. Good. I want you to hear me. I said every
conversation.
Mr. Appleton. Yes.
Senator Warren. All right. And does that include situations
where your answer is ``We need more money''?
Mr. Appleton. Yes.
Senator Warren. Good.
A home is more than a shelter. It is the foundation for a
family to build a life, to build a little economic security. A
child with a stable home can stay in the same school all year,
focus on learning instead of worrying about when they are going
to have to pack up their toys and move. Young parents buy a
home in order to try to build some wealth and ultimately be
able to use it to send their kids to college or as collateral
to start a business.
Since Secretary Carson took over, HUD has taken one action
after another that has cut the legs out from underneath
American families. He has dismissed the challenges poor
families have in finding housing and ignored information about
how HUD can help them, and that policy is bad. It is also
cruel.
So I hope you will work to reverse that trend.
Mr. Appleton. Absolutely. I am committed to working with
you and this Committee and following the evidence and the
research where it leads us. I think it is really important.
Senator Warren. Thank you, Mr. Appleton. I appreciate it.
Thank you, Mr. Chairman. Thirty-eight seconds under.
Chairman Crapo. Duly noted.
Senator Rounds.
Senator Rounds. Thank you, Mr. Chairman.
Good morning. Mr. Nadaner, you touched on this briefly when
you responded to the Chairman, but let me ask you to elaborate
a little bit. Do you have any thoughts on this particular CFIUS
legislation? Are there any closer areas that you think the
Committee should be taking a closer look at with regards to the
CFIUS reform? Can you flesh it out a little bit in terms of
your thought process?
Mr. Nadaner. Yes, Senator Rounds.
I participated in the CFIUS process when I was a Defense
Department official, and that was following a congressional
effort to strengthen the process following Dubai Ports, and
that was a good thing.
I think the threat has grown only since then. So I think it
is wise, and I think it is salutary that the legislation is
being revisited.
However, I would note that--it is a great strength of the
American system that we have monitored in-bound investment into
the United States in one process and that export controls in
another process, and the export control system is very
advanced. It is the most advanced system in the world.
In fact, one of the missions of export enforcement at
Commerce is to help other countries develop their capacity for
such a system.
So I would say that I have not been privy to the latest
Administration positions on CFIUS reform or negotiations with
this Committee. However, I would say it is good to update the
legislation, but at the same time, it is also good to preserve
the export control system that has been developed very
carefully over several Administrations now, going back several
decades.
Senator Rounds. OK. Let me move on a little bit to another
area with regard to dual use technologies. As you know, if you
are confirmed, your position will be responsible for dual use
export policy. With advancements being made in technology of
all kinds, it appears to me that the line between what is and
what is not considered to be dual use can become a gray area.
If you are confirmed, how do you plan to make sure that we
are protecting technologies that have a dual use?
Mr. Nadaner. The law is far-reaching. It had a certain
amount of genius that was in the original Act several decades
ago. It saw where things were going that a lot of the research
and development dynamism was moving toward the commercial
sector and, hence, sensitive and dual use technologies being of
a special concern, not just purely military technologies.
From what I have seen as a nominee, the Department is
fairly up to date, and Export Administration, if confirmed, my
colleague, Rich Ashooh, the Assistant Secretary for Export
Administration and Licensing, it seems to me that this is a
matter that they have all 10 fingers around.
If confirmed, from an enforcement perspective, I will
certainly bring my views to bear, and I have a couple decades
involved in the technology, particularly the newer realms of
technology.
Senator Rounds. Mr. Appleton, as you note in your
testimony, one of the roles that HUD's Office of Policy
Development and Research plays is disseminating economic
information of our Nation's housing market. HUD conducts
studies, including the American Housing Survey, as well as
other analysis to determine the health and needs of the housing
market.
Overall, what is your current opinion of the housing
market, and what are your top priorities for HUD's Office of
Policy Development and Research if you are confirmed?
Mr. Appleton. Thank you for that question, Senator.
As far as the overall housing market, I think that we are
in a little bit of a static period. We have seen a recovery
since the financial crisis, and we have seen an increase in
demand, particularly for affordable housing, but we are not
able to keep up with that demand.
As far as my priorities for HUD's Office of Policy
Development and Research, I am very interested in doing more
research on long-term disaster recovery as well as housing
affordability and also tracking what happens to families who
leave HUD assistance.
We do not have very good metrics in place on if our
programs are leading to successful exits and outcomes, and I
think that that is a very important conversation that we need
to have.
Senator Rounds. Thank you.
Mr. Chairman, I am getting close to the end, but may I ask
one more question of Congresswoman Drake, please?
Chairman Crapo. Briefly.
Senator Rounds. Thank you.
Congresswoman Drake, in addition to serving here on the
Banking Committee, I am also a member of the Environment and
Public Works Committee, where we have had the opportunity to
discuss in more depth an infrastructure package that the
President and the Committee have been advocating for. Could you
comment on the state of our Nation's transit, briefly, and the
infrastructure and the role that you believe transit should
play in an infrastructure package?
Ms. Drake. Mr. Rounds--Senator, I would just comment to you
that transit plays a very key role, both in the environment in
reducing emissions and the use of single-occupant vehicles and
is a very key component of a successful transportation network
to reduce congestion as well.
So I am very hopeful, if confirmed, that I will be working
with you in the future on those issues and that we will have
further discussions about it.
Senator Rounds. And besides that, there may be a revenue
source involved there as well.
Ms. Drake. That would be very helpful. Thank you.
Senator Rounds. Thank you.
Thank you, Mr. Chairman.
Chairman Crapo. Thank you, Senator.
Senator Donnelly.
Senator Donnelly. Thank you, Mr. Chairman.
I want to thank the witnesses and your families, and it is
great to have your families here as well. Thank you very much.
Ms. Drake, as we discussed when we met last week, I am
fortunate to come from a State that understands the importance
of public transit.
We have a number of communities that are investing in
transit systems in order to ease congestion and grow local and
regional economies.
The support for these projects is bipartisan. It spans the
gamut of Federal, State, and local governments. From myself to
the Governor to the local county and city councils, we have
expressed support for smart and sensible investments in
effective transit.
I also hope to work with President Trump on infrastructure
investments as our country desperately needs to commit to
improving our infrastructure on numerous fronts.
Unfortunately, when it comes to transit projects,
particularly those in the Capital Investment Grant Program,
projects in Indiana have experienced a number of challenges
from this Administration. Indiana has a number of projects in
the Capital Investment Grant Program. As the projects have
slowly progressed, we have been dealing with frustrating
delays. We have been dealing with delayed funding for already
approved projects, which creates a domino effect, that then
delays construction and puts contractors in difficult
situations with no work for employees and a lack of funds for
small businesses.
We have had difficulty getting FTA to communicate with
project sponsors on concerns FTA has raised to us, and then FTA
has withheld other concerns until the last minute.
Ms. Drake, you have worked on these types of projects
throughout your career. You know they can take years to
develop. You know how much up-front hard work it takes for
communities before they even apply for the funding. When FTA
does not uphold its end of the bargain, everyone gets
frustrated.
I am not alone with my frustration, as Congress just felt
the need to use the recent Government funding bill to
explicitly direct the Department to administer the Capital
Investment Grand Program in accordance with the law.
Should you be confirmed to head FTA, can you commit to me
that FTA will work in good faith with project sponsors,
providing prompt answers and reviews, informing project
sponsors about concerns, and helping them problem-solve
throughout the project?
Ms. Drake. Senator, if confirmed to FTA--and certainly, not
having been there, I cannot address the concerns that you have
raised--I do know it takes a very long time. Norfolk has a
light rail system that took a number of years to be able to
bring up, but I can commit to you that all projects will be
treated fairly, that FTA will act in accordance with the law,
and that there will be communication between you and the
stakeholders involved.
Senator Donnelly. In addition, the recent omnibus funding
bill also included a requirement that FTA provide updated
project ratings at the request of the project sponsor. Should
you be confirmed, can you describe to me what steps you will
take to provide these updated ratings in a timely basis?
Ms. Drake. Senator, if confirmed, I can commit to you that
FTA will comply with all aspects of the law, and so although I
do not know the exact details of how that will happen or what
you will be provided with, but FTA will comply with the law.
And this information will be made available.
Senator Donnelly. And last but certainly not least, a lot
of Hoosiers rely on transit to get to work each day, and a
significant number of my fellow friends and neighbors get up
each morning and go to work building the buses and the trains
that get Americans across the country to where they want to go.
I firmly believe that the Federal Government should be
doing everything it can to give preference to American goods
and services in order to ensure taxpayer dollars are used to
support investments in American companies and workers.
Can you commit to me that to the fullest extent possible,
FTA will buy American?
Ms. Drake. Senator, I can assure you that the Department of
Transportation and Secretary Chao are working diligently to
implement the aspects of Buy America. I join them and am very
happy to commit to you that I will work with them in
implementing Buy America.
Senator Donnelly. Thank you.
Thank you, Mr. Chairman.
Chairman Crapo. Thank you.
Senator Van Hollen.
Senator Van Hollen. Thank you, Mr. Chairman, and welcome to
all of you, and congratulations on your nominations.
I am going to start with Ms. Drake. Good to see you. We
served together in the House, and when you and I met, I asked
you about a number of transit issues. Among them was the
Washington Metro System.
Ms. Drake. Of course.
Senator Van Hollen. And as a Virginian, I think you
understand the importance of our Washington Metro System to the
economic health of the region. It is also called the Nation's
Metro System because it transports a large share of the Federal
workforce to work every day. Is not that right?
Ms. Drake. That is absolutely correct, Senator.
Senator Van Hollen. And I appreciate your comments
regarding the imperative for safety, especially following the
Fort Totten tragedy.
The Washington Metro System now is a compact between the
Federal Government and the District of Columbia, the State of
Virginia, and Maryland; is that right?
Ms. Drake. Yes, Senator, it is a compact with the three
entities, but in Virginia, it is the local governments.
Senator Van Hollen. Yeah.
Ms. Drake. But the State has stepped into that funding
role.
Senator Van Hollen. Right.
Mr. Chairman and the Ranking Member just recently--and this
has been a big issue in our region. The District of Columbia,
the State of Virginia, and the State of Maryland have now all
pledged dedicated funding to the Washington Metro System as
part of this partnership----
Ms. Drake. Right.
Senator Van Hollen. ----along with the Federal Government.
The authorization for that partnership expires at the end
of this fiscal year. It was a 10-year authorization. The State
of Virginia, the other parties have now pledged their continued
support. In fact, they have upped their support in the sense
that it is dedicated, right?
Ms. Drake. Yes, Senator. Virginia has stepped up to the $50
million a year.
Senator Van Hollen. Yeah. And Maryland has recently taken
those actions too, as has the District of Columbia.
So when we met, you said you would be committed to working
with me to ensure the continued Federal commitment to the
Washington Metro System, and I just ask you today if you are
willing to work with us to make sure the Federal Government
remains a partner going forward.
Ms. Drake. Senator, in the FY19 budget, there is funding
for extending PRIIA.
Senator Van Hollen. Yeah.
Ms. Drake. For fiscal '19, I can--certainly worked very
closely with the WMATA system, with Senator Warner, when I was
at Department of Rail and Public Transportation, and yes, I can
commit to you there is significant needs at WMATA. And I intend
to work very closely with all of you to meet those needs.
Senator Van Hollen. No, I appreciate that. There was a big
backup on the Red Line today, apparently at Union Station, so
we know that we need----
Ms. Drake. We need----
Senator Van Hollen. ----significant effort.
And I do appreciate, as I told you when we met, that the
Administration requested funds----
Ms. Drake. Yes.
Senator Van Hollen. ----for fiscal year 2019. We need to up
it a little bit. I think the number was $120 million. The
annual allotment from the Federal Government has been $150
million, but we can work on that.
But my question is, as you just recognized and as I said in
my question, that the 10-year authorization does expire at the
end of this fiscal year.
Ms. Drake. Yes.
Senator Van Hollen. And what I am asking for is your
commitment to maintain the Federal Government's commitment to
the Washington Metro.
Ms. Drake. Senator, I can commit to you that, if confirmed,
I will be very involved in those discussions at FTA and work as
diligently as I can to meet the needs of the Metro System.
Senator Van Hollen. But do you agree that the Federal
Government is an essential partner in the Washington Metro
System?
Ms. Drake. The Federal Government is an essential partner.
I can----
Senator Van Hollen. OK.
Ms. Drake. I can agree with you on that statement.
Senator Van Hollen. Thank you.
So to Mr. Nadaner, congratulations again on your
appointment. Good to have a Marylander appointed to this
position, and some of my questions were already covered by the
Chairman with respect to CFIUS. I really want to make sure that
we--you are an important--have important oversight over
especially dual use technologies, especially to countries like
China, where I think you play an essential role to make sure
that none of those exports are able to be diverted to military
purposes.
And, Mr. Appleton, I see that my time is going to expire
shortly, but you have been nominated to lead the Policy
Development and Research operation, which was very involved in
the study of HUD's Small Area Fair Market Rents. Are you
familiar with that program?
Mr. Appleton. I am.
Senator Van Hollen. And I look forward to the continuing
research on that.
As you probably know, back in August of last year, the
current Secretary of HUD essentially put that on hold. A court
later ordered him to proceed. What is your assessment of that
program? Because it was designed specifically to make sure that
the rents provided under the Housing Choice Voucher Program are
better tailored to allow people to live in a number of
different areas and move to more higher opportunity areas; is
that right?
Mr. Appleton. Yeah. I mean, I think I have committed to
making sure it is successful.
My understanding is the reason the mandatory implementation
was paused over the summer was because of a third-party
contractor report that raised concerns about availability of
units, voucher success rates, and utilization as well as
increased rent burdens on voucher households.
But as you noted, the District Court has directed HUD to
implement that, and it is--guidance has been issued. There have
been live in-person trainings, Web trainings, and also
technical assistance deployed by PD&R to ensure that the PHAs
in 24 metropolitan areas across the country can implement this
successfully.
Senator Van Hollen. Good. Look forward to working with you
on that.
Mr. Appleton. Me too.
Senator Van Hollen. Thank you, Mr. Chairman.
Chairman Crapo. Thank you.
Senator Cortez Masto. Thank you.
Welcome to all of your families, and congratulations to all
three of you on your nominations.
Ms. Drake, thank you for taking the time to meet with me. I
would like to start with you. As we discussed in our meeting, a
transit is an incredibly important resource in my State, in
both urban and our rural areas. I cannot tell you how often I
hear about the challenges and opportunities presented by
transit from everyday movement of my constituents to their
jobs, education, and to providing transportation to the over 40
million visitors every year that we have to the State of
Nevada.
It is important in my State, and we talked a little bit
about this, the projects that are going on from Northern Nevada
where the Washoe Regional Transportation Commission has a
specific Bus RAPID Transit Project in the works. It is the
Virginia Street Bus RAPID Transit project in the works. That
will seek FTA support to Southern Nevada Regional
Transportation Commission, where SIG funding is critical for
several projects in the Las Vegas area.
And I have heard directly from our rural Nevada communities
that they need more options to move the residents in and out of
town. NDOT reports that over 2.5 million are aided by FTA funds
to our Nevada Department of Transportation.
So can I get your commitment that you will be the voice and
champion that we need in the Department of Transportation to
make sure that transit is on equal footing with other modes of
transportation, that you will work with Congress to implement
the letter and intent of what we pass here through
authorization and appropriations?
Ms. Drake. Senator, if confirmed to FTA, I can make the
commitment to you that I will be the transit advocate, and we
talked about that in your office. And thank you for taking the
time to meet with me as well.
I can also commit to you that all projects will be looked
at and treated fairly and dealt with in compliance with the
law, so I can make that commitment to you.
Senator Cortez Masto. Thank you.
And then we also talked about how innovation plays a
valuable role in our----
Ms. Drake. Yes.
Senator Cortez Masto. ----transit services, correct?
And I believe we even talked about the fact that Senator
Burr and I have introduced a bipartisan bill, the Moving FIRST
Act, to reestablish a competitive grant program for supporting
SMART communities throughout the country, both in urban and
rural areas.
Can I get your commitment to continue to consider support
and fund innovation through your various FTA programs, where
appropriate?
Ms. Drake. Senator, if confirmed to FTA, I can make the
commitment to you that it is absolutely one of my priorities
for innovation and for technology to make sure that our transit
systems run more efficiently, more effectively, provide better
service, and it is very exciting. I am very excited about some
of the things that are taking place.
Senator Cortez Masto. And for that reason, can you just
give me your thoughts on where you see technology playing a
greater role in transportation, transportation mode?
Ms. Drake. Well, I think technology in terms of autonomous
vehicles, in terms of smart apps that could be used, the
research division that is at FTA, just a lot of interesting
possibilities there--and the goal to make it an easier transit
ride where more people will choose to use transit rather than
driving their vehicles.
Senator Cortez Masto. Thank you. Thank you very much.
Mr. Appleton, great to see you again as well.
Mr. Appleton. Good to see you, ma'am.
Senator Cortez Masto. And so we similarly had a
conversation, and I believe the number one thing we talked
about was that nearly every community in this Nation has an
affordable housing crisis, rental housing crisis. In Nevada, it
is rental, high rents. It is lack of inventory. It is a number
of things.
So can I ask you, what are the three things you will do to
address the affordable rental--let us talk about rental housing
crisis.
Mr. Appleton. Sure. I think that the first thing I will do
is talk to my colleagues at Treasury and USDA as part of what
is called the Rental Policy Working Group. We need to get that
elevated, I think, to a leadership level. That there is an MOU,
I understand, that already exists to do that, because in
addition to HUD, Treasury runs the Low-Income Housing Tax
Credit Program, and USDA's Rural Housing Service is also
integrally involved. So that is one thing.
Second, I think HUD and PD&R specifically can serve as a
clearinghouse of best practices for communities that want to
make progress on this, on things such as restrictive growth
management controls, excessive affordable housing development
fees, things of that nature, where we can really inform
communities on how to do things better on the score.
And last, I think we need to look at the Moving to Work
expansion that has been authorized by Congress for 100
additional PHAs. One of the things we are going to be testing
as part of that expansion demonstration is PHA flexibility, and
I think that one of the things we want to see is if that
additional flexibility actually leads to being able to serve
more households that are currently not served.
Senator Cortez Masto. Thank you.
And I know my time is running out. Just recently, I
convened a stakeholders group in Southern Nevada to address
affordable housing needs. HUD was there along with USDA. Can I
get your commitment that you will continue to be a part of our
working group to figure out how we address the needs of
affordable housing in the State of Nevada?
Mr. Appleton. Absolutely, Senator. I am fully committed to
working with you and your constituents on this very important
issue.
Senator Cortez Masto. Thank you very much.
My time has run out.
Congratulations to all three of you.
Mr. Appleton. Thank you.
Chairman Crapo. Thank you, Senator.
And that concludes the questioning for today's hearing. I
again thank all of the witnesses for being with us today and
for your willingness to serve our country.
For Senators who wish to submit questions for the record,
those questions are due next Tuesday, April 24th, and we then
ask that our nominees please responsd to those questions by the
following Tuesday, May 1st.
With that, this hearing is adjourned.
[Whereupon, at 11:04 a.m., the hearing was adjourned.]
[Prepared statements, responses to written questions, and
additional material supplied for the record follow:]
PREPARED STATEMENT OF THELMA DRAKE
To Be Administrator of the Federal Transit Administration
April 17, 2018
Chairman Crapo, Ranking Member Brown, and distinguished Members of
the Committee, thank you for the opportunity to address you today and
to answer your questions.
I am honored to be nominated to the position of Administrator of
the Federal Transit Administration. I would like to thank President
Trump and Secretary Chao for their support and belief in me.
I view transit as a key component of a transportation network. I
realize that needs vary across our country and I look forward to
engaging in the various discussions with stakeholders as to how
construct, maintain, and operate successful systems.
In Congress, I served on the House Transportation and
Infrastructure Committee and while serving in the Virginia General
Assembly, I was a member of the House Transportation Committee. I have
also served as a member of the Virginia Commonwealth Transportation
Board.
After leaving Congress, I served as Director of the Virginia
Department of Rail and Public Transportation (DRPT). While the Director
of DRPT, I helped implement new processes and performance metrics that
enhanced accountability and incentivized performance and efficiency for
State transit systems. We also created a new model for funding capital
investments that placed an emphasis on investment in rolling stock. My
work included involvement with Virginia's transit systems; the
Washington Metropolitan Area Transit Authority and Virginia's commuter
rail system, the Virginia Railway Express.
Secretary Chao and I share the same priorities for transportation.
If confirmed, my top priorities will be:
1. The safety of our transit systems and the traveling public
2. Infrastructure support and investment
3. Preparing for the future through innovation
Again, thank you for your time and consideration of my nomination.
I would be honored to work with each of you on your priorities and to
be an advocate for transit nationwide.
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PREPARED STATEMENT OF JEFFREY NADANER
To Be Assistant Secretary of Commerce for Export Enforcement
April 17, 2018
Mr. Chairman, Ranking Member Senator Brown, Senators of the
Committee, With reverence for our Nation's Constitution, I come before
the Members of this Senate Committee to be considered for Assistant
Secretary of Commerce for Export Enforcement. I express my appreciation
for the confidence shown by the Secretary of Commerce, Wilbur L. Ross,
Jr., and the nomination by the President of the United States, Donald
J. Trump.
As a child of World War II refugees, I was brought up with a
profound gratitude for our Nation's incomparable freedoms, exceptional
opportunities for economic betterment and dignity, and the women and
men who--day-in and day-out, with little note but much dedication and
sacrifice--ensure our safety and uphold our laws.
The Assistant Secretary of Commerce for Export Enforcement and
Bureau of Industry and Security as a whole work to ensure that our
adversaries do not have access to sensitive technologies and weapons of
mass destruction. Effective harnessing of the Commerce Department's
capabilities is indispensable to preventing the diversion of dual-
purpose U.S. technologies to enemies who may threaten our military, our
homeland, and our citizenry. Enforcement of the law is a sine-qua-non
for protecting our Nation's security, and the U.S. defense industrial
base and its intricate supply chains, which are its foundation. Robust
enforcement is central to ensuring Congressionally mandated sanctions
and anti-boycott laws have effect.
If confirmed, I will bring to bear more than two decades of
experience in national security, industry, and Federal law--from the
vantage points of both the public and private sectors. My current
duties with the Marine Corps center on U.S.-foreign technology
competitions, cyber and informational threats, and military and
security operations.
Earlier at the Lockheed Martin Co. and several small businesses, I
concentrated on aerospace and defense technology; mergers,
acquisitions, and joint ventures; and U.S. procurements and foreign
exports. I have managed hardware and software research and development
(R&D) portfolios. I have partnered with scientists and engineers in a
range of advanced technical domains. I have worked on protecting and
improving crucial supply chains, global and domestic. Integral to all
of my undertakings involving foreign sales and entities was operating
under Commerce and State Department led export control systems, and
anti-boycott and anti-corruption laws.
Before that, while Deputy Assistant Secretary of Defense for
Stability Operations and Partnership Strategy, I oversaw exports of
U.S. military equipment and services to countries across the globe.
These transfers involved extensive compliance with the U.S. export
control systems to safeguard sensitive technologies, and protect U.S.
national interests and values. In this regard, I had the honor of
working with both sides of the aisle in the Senate and House of
Representatives to produce bipartisan national security legislation.
Teaming with the members of the career civil service, I developed
short- and long-term national security policies, joined efforts with
the intelligence community and a range of Federal departments and
agencies, and advanced interagency decision making. I developed rich
experience negotiating with foreign countries on behalf of the United
States with respect to technology uses, transfers, and partnerships.
Among my highest privileges has been to serve as a U.S. Department
of Justice trial attorney. I have represented an array of Federal
departments and agencies in litigation arising out of their law
enforcement, regulatory, and administrative activities. I understand
the conditions and frameworks under which our officers and agents act.
I have seen crimes' effects. I have conducted investigations and
enforced subpoenas. I have worked with U.S. Attorney offices. I have
filed suits, negotiated advantageous settlements, and brought cases to
favorable judgment for the United States.
If confirmed by the Senate, I will steadfastly enforce U.S. export
controls, sanctions, embargos, and anti-boycott laws, while strenuously
advancing policies that safeguard American jobs, technologies, and
industries that form our indispensable national industrial base. Mr.
Chairman, Senator Brown, and Senators of the Committee, I will be
honored to answer any questions you may have and please accept my
appreciation for your consideration of this nomination.
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PREPARED STATEMENT OF SETH APPLETON
To Be Assistant Secretary of Housing and Urban Development for Policy
Development and Research
April 17, 2018
Chairman Crapo, Ranking Member Brown, distinguished Members of this
Committee, thank you for convening this hearing. It is an honor to
appear before you as the nominee to be Assistant Secretary of Housing
and Urban Development for Policy Development and Research. As a former
staffer in the House of Representatives, I have sat along the wall
behind the dais, but never at the witness table. To be sure, it is a
humbling experience, as I have a great deal of respect for this
institution and the important role it plays in confirming nominees for
service in the executive branch.
Before I begin my testimony, I would like to recognize my family.
My wife, Brooke, is here today. In typical Capitol Hill fashion, we met
first as colleagues in the House. My mother, Susan, and my father, Bob,
are both here today from St. Louis. My mom has been a law professor for
the last 43 years and taught me the value of research from a very young
age. My brother, Jesse, and his wife, Ali, are here from St. Louis,
too. Along with them is my nephew Bennett, who will soon be celebrating
his first birthday. Hopefully, he will enjoy his first congressional
hearing. On Brooke's side of the family are my in-laws, Barb and Tim
Shupe from Stanberry, Missouri. Last, but certainly not least, is my
grandmother Winifred Frelich, who, hopefully, is watching the broadcast
at home in St. Louis. She just celebrated her 93rd birthday on Friday
and reminded me that she was the one who brought me to Washington, and
indeed the Senate, for the very first time during a spring break nearly
30 years ago. In addition to my family, I would also like to thank
Senators Blunt and McCaskill, as well as the entire Missouri
congressional delegation, Republicans and Democrats alike, for
supporting my nomination.
HUD's Office of Policy Development and Research (PD&R) plays a
critical role for the entire Department, coordinating recommendations
on policy matters, overseeing research projects and demonstrations,
disseminating economic information, and managing international programs
and philanthropic initiatives. It is on the cutting edge of identifying
new trends and finding innovative solutions to the housing and
community development challenges of the day. As such, the Assistant
Secretary must be familiar with the public policy development process,
understand the importance of sound research in formulating evidence-
based solutions, and provide effective leadership, management, and
budget oversight to the PD&R team. If confirmed, I am committed to
serving as a partner to this Committee and the Congress, which has long
been involved in shaping PD&R's research and policy work.
I believe I am well-suited to serve in this position based on my
public policy and management experience. Following my graduation from
Stanford, I worked in the U.S. House for 13 years, first as a
legislative staffer, then as a Chief of Staff. As a legislative
staffer, my portfolio included housing policy, and I later had the
opportunity to really focus on this topic, as it was a priority for
Congressman Luetkemeyer in his role as Chairman of the Subcommittee on
Housing and Insurance. An example of the policies we worked on is H.R.
3700, the Housing Opportunity Through Modernization Act (HOTMA), which
passed both the House and Senate unanimously and was signed into law by
President Obama in 2016.
In addition to focusing on policy matters, I gained valuable
management experience in the course of building, organizing, and
leading a team of staffers in Missouri and Washington. I worked to
ensure our entire team was involved in a collaborative process to craft
sound initiatives. This included everything from generating ideas, to
reviewing research, to developing partnerships and building coalitions.
All of this was done with one underlying objective in mind: to improve
the lives of the people we served.
In July 2017, I left my position in the House to join HUD as
General Deputy Assistant Secretary and Acting Assistant Secretary in
the Office of Congressional and Intergovernmental Relations. Besides
affording me the opportunity to work with many of the Senators and
staff in this room, this role has also allowed me to interact with all
of the Department's program and support offices, across silos,
including PD&R. Prior to being nominated, I worked with PD&R's staff on
a variety of issues including grants, university partnerships,
technical assistance, and disaster response.
PD&R has an outstanding team of dedicated civil servants. If
confirmed, I very much look forward to leading that team, advocating
for its work, and ensuring that its products meet Congress' intent and
are utilized for the betterment of those served by HUD. Our policy
solutions should be evidenced-based, backed by sound data, and tested
by well-designed demonstrations and thorough research.
In closing, I believe my housing policy and management experience
in the legislative and executive branches has prepared me well to serve
as Assistant Secretary. If confirmed, I look forward to working with
this Committee to advance policies that address the priorities and
needs of the American people. I would be pleased to answer your
questions and honored to earn your support.
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RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN CRAPO
FROM THELMA DRAKE
Q.1. Congress made a determination in MAP-21 that safety of
rail transit agencies should be overseen by a right-sized State
Safety Oversight (SSO) Agency, rather than a one-size-fits-all
Federal approach. In order to prevent FTA from assuming
provision of direct safety oversight, Congress wrote into
statute a deadline for compliance which is April 15, 2019, with
only 8 of 30 States currently certified to be in compliance.
If you are confirmed as Administrator, how do you plan to
work with the remaining States to achieve compliance with this
requirement and ensure that our Nation's rail transit systems
are efficiently and effectively overseen?
A.1. Safety is my highest priority, and if confirmed as
Administrator I will work closely with the remaining States to
help stand up their Safety Oversight Programs and fulfill their
safety responsibilities. It is my understanding that 11 States
have now achieved SSO certification.
Q.2. In 2016, the FTA established the Mobility on Demand (MOD)
grant program to help spur innovation and infuse technology
into our Nation's public transit systems. The program revealed
that FTA may need new regulatory guidelines or policy changes
to allow transit agencies to fully realize the promise of
innovations in shared mobility and mobility on demand. Of the
11 grant winners, Transportation Network Companies (TNCs), such
as Uber and Lyft, were involved in nine of the projects, which
indicates that there is tremendous interest from both the
private sector and public transportation authorities for this
new service.
If you are confirmed as Administrator, what steps will you
take to utilize the findings of the MOD grants to reduce
antiquated regulations and set in place a modern regulatory
regime at FTA that enables innovative new technologies to
partner with transit agencies in the long term?
A.2. If confirmed, I will utilize the information and findings
gleaned from the Mobility on Demand grants and work with the
FTA research team to help pioneer innovative and streamlined
approaches to mobility. From on-demand services, to smartphone
applications, to partnerships with the private sector, I feel
strongly that innovation is key to public transportation
thriving in an ever more-competitive marketplace.
Q.3. FTA is divided into 10 regions. Project sponsors have
found that different regions tend to provide different answers
and oftentimes headquarters finds out about the discrepancies
when Congressional staff brings it to their attention.
If you are confirmed at Administrator, can you commit to
reviewing the decisions made in regional offices to ensure
consistency? Will you seriously consider how the regional
decisions are communicated with headquarters and how
headquarters commutes decisions to the regions, in order to
ensure that Federal transit statutory, regulatory, and
administrative interpretations are being equitably applied
across all regions?
A.3. If confirmed, I will make ensuring consistency throughout
FTA a priority. I will take a very close look at how FTA
headquarters communicates decisions to the 10 regional offices
and vice versa. I will also commit to reviewing decisions made
in regional offices to ensure consistency.
Q.4. The provisions regarding the Core Capacity evaluation and
rating process, the establishment of a program of interrelated
projects and the program for expedited project delivery are yet
to be implemented by this Administration. An upcoming
Government Accountability Office report states that FTA
officials told GAO they ``do not have plans to address'' three
statutory provisions intended to deliver transit projects more
efficiently citing the President's budget proposal to eliminate
the program, despite the recent FY2018 Appropriations bill
providing additional resources to the program and directing the
Administration to continue to administer the program.
If you are confirmed as Administrator, do you plan to
implement the statutory provisions to streamline processes and
leverage Federal resources?
A.4. If confirmed as Administrator, I plan to implement
programs and processes consistent with the law and leverage
Federal resources wherever possible and streamline programs
wherever possible to efficiently serve the American people.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN
FROM THELMA DRAKE
Q.1. Since 1983, when President Reagan signed the law that
created the Mass Transit Account, Congress has allocated at
least 20 percent of new revenue deposited in the Highway Trust
Fund to public transportation. For example, in 1983 the Federal
motor fuels tax was increased by 5 cents from 4 cents per
gallon to 9 cents per gallon. From the 5 cents per gallon of
new revenue from that increase, 1 cent was deposited in the
Mass Transit Account.
Do you support the principle that public transportation
should continue to receive not less than 20 percent of new
revenues deposited into the Highway Trust Fund?
A.1. I support public transportation, and if confirmed, I plan
to be an advocate for public transportation within DOT and the
Administration. As Congress and the Administration begin
negotiations on an infrastructure bill as well as the next
surface transportation reauthorization, I will commit to being
an advocate for transit during those discussions.
Q.2. Without commenting on any recent or future proposals,
would you use the position of Administrator to urge support for
the principle of allocating not less than 20 percent of any new
revenue added to the Highway Trust Fund to public
transportation?
A.2. I support public transportation, and if confirmed, I plan
to be an advocate for public transportation within DOT and the
Administration. If legislation is considered regarding the
Highway Trust Fund, I will commit to advocating for transit in
any negotiation.
Q.3. In the FY17 TIGER awards announced last month USDOT funded
only two public transportation projects. Those public
transportation projects received just 3.6 percent of the
available FY17 funding, which nearly eliminated public
transportation funding under the program despite the large
number of transit applications that were rated highly.
Do you believe the FY17 TIGER awards funded an appropriate
number of public transportation projects?
A.3. Since I was not at the Department of Transportation during
the most recent round of TIGER awards, I cannot speak to the
merits of the projects that applied and those that were
awarded. If confirmed, I will be an advocate for transit
projects applying for funding through any eligible
discretionary grant program.
Q.4. Do you believe FY17 TIGER awards allocated an appropriate
share of funding to public transportation projects?
A.4. Since I was not at the Department of Transportation during
the most recent round of TIGER awards, I cannot speak to the
merits of the projects that applied and those that were
awarded. If confirmed, I will be an advocate for transit
projects applying for funding through any eligible
discretionary grant program.
Q.5. Would you use the position of Administrator to urge USDOT
to support a greater number of public transportation projects
and a higher share of funding for transit in the recently
announced FY18 ``BUILD'' competition?
A.5. If confirmed, I will be an advocate for transit projects
applying for funding through any eligible discretionary grant
program, including the BUILD program.
Q.6. The FY18 omnibus provided $2.6 billion for the Capital
Investment Grant program and provided direction to FTA on the
continued Administration of the program.
Do you agree that the FY18 omnibus directs FTA and the
Department to continue to move projects through the Capital
Investment Grant program's process and sign new grant
agreements?
A.6. If confirmed, I will carefully review the FY18 Omnibus and
will commit to implementing the CIG program consistent with the
law.
Q.7. Can you commit that you will sign full funding grant
agreements as soon as New Starts and Core Capacity projects
meet the statutory requirements for such projects.
A.7. If confirmed, I can commit to implementing the CIG program
in accordance with the law. As proposed projects become ready
for a funding agreement commitment, FTA will consider each
project on its own merits and will advance them through the
process as appropriate and consistent with legal requirements.
Q.8. Do you agree that full funding grant agreements, as
established in 49 U.S.C. 5309, are designed to be executed
before all appropriations for a project have been made
available by Congress?
A.8. The President's FY19 Budget requested funding for existing
full funding grant agreements (FFGAs) requiring additional
appropriations. Under the law, FTA is authorized to execute an
FFGA prior to all appropriations being made available by
Congress.
Q.9. Do you agree that delays in signing grant agreements for
all types of projects (New Starts, Core Capacity, Small Starts)
often result in cost escalation for project sponsors?
A.9. I support the President's goal of expediting delivery for
all transportation projects. That being said, I believe it is
the responsibility of the FTA Administrator to make certain
that CIG projects are thoroughly reviewed before Federal
dollars are committed.
Q.10. Do you believe that project budgets under the CIG program
are sensitive to delays that occur when project is ready for a
grant agreement, i.e., the project has met all statutory
requirements, which occurs late in the project development
process?
A.10. Having worked on transit projects at the State and local
levels, I do believe that project budgets are sensitive to
delays, but I also believe that it is the responsibility of the
FTA Administrator to make certain that CIG projects are
thoroughly reviewed before taxpayer dollars are committed.
Q.11. The FAST Act established the ``Expedited project delivery
for capital investment grants pilot program'' (Section 3005(b))
to test new means of projects delivery, but FTA has not
solicited projects under the pilot, issued guidance or provided
other means for interested applicants to develop applications
under the pilot.
If confirmed, will you work to implement the pilot program
as authorized, including the requirement concerning the
operation of the project by an existing provider of fixed
guideway or bus rapid transit public transportation in the
service area of the project?
A.11. If confirmed, I will implement all programs consistent
with the law, and innovative project delivery is a priority
across DOT.
Q.12. Would you take measures to ensure that potential
applicants are aware of the program and can apply under the
pilot?
A.12. If confirmed, I will take measures to ensure that
potential applicants are aware of the program and can apply
under the pilot.
Q.13. If responding in the affirmative, what measures would you
take?
A.13. If confirmed, I will review what steps have already been
taken by FTA to make applicants aware of the program and
determine if there are any interested project sponsors. I will
make sure that FTA continues to work with these project
sponsors as well as any others to administer the pilot program.
In addition, I would explore options for informing the industry
of their option to apply through the pilot program.
Q.14. What are your priorities for safety oversight?
A.14. Safety is my top priority, and my first safety priority,
should I be confirmed, will be the certification of the State
Safety Oversight (SSO) Programs for the States that still must
receive certification by April 15, 2019. If a State does not
meet that deadline, FTA must withhold all transit funding until
certification is achieved.
Q.15. If confirmed, would you manage FTA's safety oversight
activities without regard to political considerations?
A.15. Yes, if confirmed I would absolutely manage FTA's safety
oversight activities without regard to political
considerations.
Q.16. The FAST Act added ``minimum safety standards to ensure
the operation of public transportation systems'' as an explicit
element of the National Public Transportation Safety Plan. The
law also directed FTA to complete a review of existing safety
standards, which has been completed, but FTA's subsequent
efforts to improve or issue new safety standards have been very
limited.
If confirmed, will you be proactive in using your authority
to improve safety standards in the public transportation
industry?
A.16. I believe safety standards can be a helpful tool for
public transportation agencies and their State safety oversight
bodies as they work to improve their safety practices. However,
having personal experience overseeing many transit operators
throughout Virginia--large and small, urban and rural--I know
that local variation among transit systems means that a ``one
size fits all'' would not be suitable. Therefore, I would seek
to strike the appropriate balance between national safety
standards and local flexibility.
Q.17. As State Safety Oversight Agencies (SSOAs) seek
certification, they are not being required to conduct regular,
unannounced inspections as they ramp up their oversight. GAO
recently noted the need for inspections and guidance from FTA
on inspection practices.
After further review of safety oversight practices, do you
believe that inspections, particularly unannounced inspections,
are a core element of an oversight program?
A.17. I believe that inspections play an important role for
rail transit safety. If confirmed, I will work with the transit
industry and the FTA Office of Transit Safety and Oversight to
determine the proper requirements for SSOAs with regard to
regular and unannounced inspections.
Q.18. The FAST Act created the Pilot Program for Innovative
Coordinated Access and Mobility (ICAM, Sec. 3006(b)) to fund
projects that improve the coordination of transportation
services and nonemergency medical transportation services. The
law also directed the Coordinating Council on Access and
Mobility (CCAM) to pursue specific activities that foster
coordination.
Will you commit to work expeditiously to advance further
rounds of funding under the ICAM pilot program?
A.18. If confirmed, I will work to implement all requirements
of the law as expeditiously as possible.
Q.19. Will you support the work of the Coordinating Council on
Access and Mobility (CCAM) and utilize findings from the pilot
program (ICAM) to implement strategies that promote
coordination between Federal agencies that support
transportation services?
A.19. If confirmed, I will support the work of the CCAM and
utilize findings from the pilot program to implement strategies
that promote coordination between Federal agencies that support
transportation services. I know from my work in Norfolk, VA,
the importance of coordination among a multitude of
transportation providers.
Q.20. In your testimony, you stated that ``preparing for the
future through innovation'' was one of your top priorities.
If confirmed as Administrator, how would you take action on
that priority?
A.20. It is an exciting time in public transportation, with
many new technologies and service delivery models available. If
confirmed as Administrator, I would build on efforts underway
at FTA and throughout the industry to ensure technologies are
utilized to improve safety, reliability, and efficiency for
transit riders and employees. Specifically, I would work with
the Department to continue to explore Automated Vehicle
technology in transit, which has the potential to significantly
improve safety.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR HELLER
FROM THELMA DRAKE
Q.1. I would like to extend a formal invitation to you to visit
Nevada this year if you have the opportunity. Our Regional
Transportation Commissions in both the north and the south
would be happy to showcase their amazing work. Washoe RTC is
working through some innovative options for connecting Reno
with our new industrial complex that hosts Tesla, Switch, and
other tech companies. They also have a great project to connect
our growing downtown with the University of Nevada, Reno.
Our Southern Nevada RTC Director Tina Quigley has coined
the phrase: technology is the new asphalt, and Las Vegas is a
great example of that. They are using innovative technologies
to transform transit in the region and increase safety and
convenience.
A lot of their successes are due to the Capital Investment
Grant Program. It has been critical to our Regional
Transportation Commissions and their efforts to expand
transportation options that will create job growth,
competitiveness, and new opportunities for residents.
Are you supportive of continuing this transit program?
A.1. If confirmed, I will always support the law and will
implement the CIG program consistent with the law.
Q.2. As Congress considers an infrastructure package, what role
should transit play in that proposal?
A.2. Transit is a key component of the Nation's transportation
network, and if confirmed, I look forward to working with
Congress, the Administration and stakeholders on furthering the
Administration's Infrastructure Proposal. Transit projects
would certainly be eligible to compete for funding through the
Administration's proposed infrastructure grant programs.
ADDITIONAL NOTE: I will commit to coming to Nevada this
year if I am confirmed.
------
RESPONSES TO WRITTEN QUESTIONS OF
SENATOR MENENDEZ FROM THELMA DRAKE
Q.1. Yes or no, is the Gateway Project nationally important?
A.1. The projects making up the Gateway program are important
to the region and have impacts across multiple States.
Q.2. For a New Starts or Core Capacity project, what is the
minimum percentage of the total project cost that the local
sponsor needs to commit of their own funding to earn a Medium
rating? Please provide a percentage.
A.2. Each project in the CIG program is unique and must be
considered on its own merits. As I have not been involved in
FTA's evaluation and rating process for CIG projects, I cannot
provide an answer in such detail. However, I would note that
the overall rating is contingent on many factors, not solely
the local financial share.
Q.3. Yes or no, if confirmed, would you comply with a request
made by anyone in the Department of Transportation, the White
House, or anywhere in the Executive Branch that you or the
staff at FTA reject, downgrade, delay, or provide a low rating
to a Capital Investment Grants application for political
reasons?
A.3. No, I would not comply with such a request. I would
administer the CIG program and all FTA programs in accordance
with the law.
Q.4. Amtrak has stated that they likely will be required to
shut down the Hudson River Tunnels sometime in the next 15 or
20 years, because at some point they'll become unsafe for
passenger travel.
If DOT continues to block our efforts to replace those
tunnels, will you develop an emergency plan for dealing with
the 200,000 daily Hudson River Tunnel riders that would need to
find another way to get to their destination?
A.4. If confirmed, I will always prioritize the safety of
passengers utilizing transit as their mode of travel. If any
transit system throughout the Nation becomes unsafe for travel,
I will work with State and local governments as well as the
transit agency to address the situation in a safe and effective
way.
Q.5. The Department of Transportation's 2015 ``Status of the
Nation's Highways, Bridges, and Transit: Conditions and
Performance'' report found an $89.9 billion transit state of
good repair backlog.
What do you believe is the primary driver of that backlog?
A.5. The maintenance backlog in transit has been a problem that
has developed over many decades. The primary driver, in my
view, is a lack of appreciation for the need to plan for the
maintenance and replacement costs of transit assets well in
advance.
Q.6. Do you believe this backlog can be addressed without
additional Federal funding?
A.6. FTA's authorized programs include billions of dollars in
formula funding for transit agencies to address their capital
and state of good repair needs. Tackling the maintenance
backlog will require sustained effort at the Federal, State,
and local government levels.
Q.7. Fully half of the funding in the President's
infrastructure proposal goes to an ``infrastructure
incentives'' program that has a 20 percent Federal share,
compared with the 80 percent Federal share common in transit
programs.
Do you believe a 20 percent Federal share is appropriate
for transit projects?
A.7. To my understanding the President's incentive program is
new and additional funding, not intended to replace or
establish a new Federal-local cost sharing arrangement. While I
was not at the Department during the drafting of the
Administration's Infrastructure Proposal, it's my understanding
that the proposal aims to address significant infrastructure
needs across the Nation, including by partnering with State and
local governments. Many State and local projects sponsors have
already shown the ability to generate resources through
innovative financing, public-private partnerships, and/or
securing additional local revenue streams.
Q.8. Do you agree with the President's budget proposal to phase
out the Capital Investment Grants program?
A.8. I believe the Administration's Infrastructure Proposal,
which seeks to leverage Federal investments so that more
projects can be developed at the State and local level in a
more streamlined timeframe, is the appropriate avenue to
consider funding for many projects currently under
consideration in the CIG program. That said, I recognize that
the CIG program is authorized and appropriated in law and I
will always follow the law if I am confirmed as Administrator.
Q.9. In the most recent round of TIGER grants, less than 4
percent of the overall funds were allocated to projects in
which transit was the sole or central component.
Is this a sufficient amount?
A.9. Since I was not at the Department of Transportation during
the most recent round of TIGER awards, I cannot speak to the
merits of the projects that applied and those that were
awarded. If confirmed, I will be an advocate for transit
projects applying for funding through any eligible
discretionary grant program.
Q.10. Will you advocate with Secretary Chao to increase that
amount in the future, including under the recently rebranded
BUILD grants program?
A.10. If confirmed, I will be an advocate for transit projects
applying for funding through any eligible discretionary grant
program, including the BUILD program.
------
RESPONSES TO WRITTEN QUESTIONS OF
SENATOR CORTEZ MASTO FROM THELMA DRAKE
Q.1. Ms. Drake--should you be confirmed, I personally invite
you to come see what we have going on in Nevada. As we've
discussed, technology and innovation present a real opportunity
for increased safety, efficiency, and overall quality of life
for many American. I really think it would be helpful for you
to see our challenges and opportunities first hand.
Can you commit to coming to Nevada within the first year
following your confirmation?
A.1. Yes, I would be happy to come to Nevada within the first
year following confirmation.
Q.2. I'm deeply concerned about the haphazard way the
Administration's infrastructure proposal was put together, and
that--if you were truly interested in putting forth a serious,
bipartisan infrastructure proposal--there wouldn't be such
obvious concerns. My appreciation is that the Administration
didn't work in concert with any congressional Democrats on our
ideas or perspectives. For instance, in my outreach with local
transportation stakeholders, they noted ``Many of the
requirements and changes [in the proposal] would probably
require extensive and difficult revisions to State laws for the
RTC to fully utilize them. Examples: tolling and use of toll
revenues, transit-related value capture, etc.''
Are you concerned that I'm hearing from Nevadans that the
Administration's proposal conflicts with local laws?
A.2. I am concerned with any obstacles to implementing the
Administration's Infrastructure Proposal. If confirmed, I look
forward to working with Congress on issues of critical
importance to our infrastructure. I would note that many
transit agencies already undertake activities that could be
considered ``value capture.'' If confirmed as Administrator, I
would work to help inform the industry as to how they can
productively leverage both new and existing assets and
services.
Q.3. Are you aware if Sec. Chao has broad infrastructure
stakeholder support, like that of labor unions, State DOTs, or
transit agencies for the Administration's proposal?
A.3. Since I am not at the Department of Transportation, I
cannot speak to current status of stakeholder support for the
Administration Infrastructure Proposal.
Q.4. What was your reaction from the perspective of your
current job with the city of Norfolk, and what was the Mayor
and the communities perspective on the proposal?
A.4. Norfolk, like many other cities around the Nation, has
many infrastructure needs and my city appreciates the
Administration's focus on infrastructure. Specifically, I
believe that the increased flexibility offered through the
infrastructure proposal will empower States and localities to
use the knowledge of their own communities to best further
critical infrastructure projects.
Q.5. As we discussed, one of my priorities is getting funding
for the Virginia Street RAPID Extension in Reno. This project
has a 50 percent local match and is rated ``medium high''. It
is my understanding that normally, a project with this type of
match and rating would be a certainty for funding and a full
funding grant agreement.
Regardless of what you do or don't know of the FTA's review
of this project, can you agree that a 50 percent match from a
locality is significant ``skin in the game'' as Secretary Chao
often states?
A.5. Projects sponsors should be aware that the CIG program has
never offered a guarantee of Federal funding to applicants.
Projects must meet the applicable statutory and readiness
requirements to be considered for a construction grant
agreement. I do believe that the cost to build CIG projects
such as the Virginia Street RAPID in Reno should be
appropriately shared among the Federal Government and the local
communities that they serve. While I cannot comment further on
this project specifically, I can commit to giving each and
every project fair consideration in accordance with the law.
Q.6. On the transportation innovation topic we've discussed,
one area I think Federal funding should be considered is for
``transformative'' projects in the areas of electric bus
propulsion and autonomous vehicles, including funding research
to address the deployment issues for these types of projects.
One potential concept is adding ``bonus'' points to bus rapid
transit Capital Investment Grant (CIG) projects that use
autonomous technologies.
Given these opportunities, can I again confirm your support
of the development of autonomous transit technologies?
A.6. Yes, I believe automated transit vehicle technology has
the potential to generate significant improvements to safety
and service.
Q.7. And can you provide me your thoughts on whether you would
support this concept of rewarding projects in the CIG program
who utilized innovative technologies?
A.7. The CIG program has many specific evaluation criteria that
are established in statute. I would have to further study the
details of the program's administration to better answer your
question. I can commit that, if confirmed as Administrator, I
would certainly explore the different avenues available to
encourage responsible innovation in transit projects.
Q.8. Along those same lines, I would also be interested in you
looking at innovative partnerships and ``alliances'' between
the private sector, public sector, universities, and even
international interests in advancing design, deployment and
operation of autonomous vehicles and coordination for smart
communities. The University of Nevada at Reno's efforts to
conduct research are becoming global in reach and are helping
us have a deeper understanding of the engineering issues but
also the business, finance, and deployment issues.
Do you believe and intend to advocate for these kinds of
partnerships during your potential service at USDOT, and do you
think that this is a concept that could be considered within
the University Transportation Center (UTC) function at USDOT,
or some other outlet directly within the FTA?
A.8. I believe that public-private partnerships hold much
promise for researching and deployment innovative technologies
in public transportation. It is my understanding that FTA's
research programs do currently involve partnerships with
universities and research consortia. If confirmed, I would be
happy to work with your office on how best to incorporate new
developments from throughout the industry.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR JONES
FROM THELMA DRAKE
Q.1. An issue that is important to workers in Alabama are Buy
America requirements, and I know the President has made this a
priority of his as well. Current law goes into great detail
about Buy America requirements for traditional diesel busses,
but for newer technology like the electric busses they make in
Northern Alabama, there is less detail.
If you are confirmed, will FTA work to implement strong Buy
America standards for these new technologies?
A.1. Yes, if confirmed I will work to implement Buy America
standards required by law and any Executive Orders broadly.
Q.2. Birmingham-Jefferson County Transit Authority recently
received $3.6 million to help improve their bus systems. For a
city like Birmingham, a modern bus system is critical to both
residents and to visitors--especially as the city prepares to
host the ``World Games'' in 2021. This funding was through the
FTA's Bus & Bus Facilities Infrastructure Investment Program.
And while Birmingham got dollars this time around, the program
has 10 times as many requests than it can fund.
If confirmed, will you commit to maintaining funding for
bus and bus facilities improvements?
A.2. If confirmed, I commit to carrying out FTA's programs in
accordance with the law and the appropriations provided by
Congress.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN
FROM JEFFREY NADANER
Q.1. As Assistant Secretary for enforcement, you would be
charged with protecting U.S. national security, foreign policy,
and economic interests by enforcing laws on sensitive exports
to hostile actors or those that engage in onward proliferation;
prohibited foreign boycotts; and related laws.
What would be your major priorities in this role for the
next several years?
A.1. If confirmed, my major priority will be the aggressive
enforcement of the Export Administration Regulations: that is,
to halt illegal transfers of dual-use U.S.-origin
technologies--including to U.S. adversaries and to countries in
contravention of U.S. sanctions and embargos; interrupt exports
that contribute to weapons of mass destruction proliferation or
destabilizing military modernization activities; prevent
illicit procurements by terrorists and terrorist-supporting
countries; and stop unlawful compliance with foreign country
imposed or fostered restrictive trade practices against any
country friendly to the United States. Key to achieving these
goals will be expanding our partnerships with U.S. industry and
universities, other Government agencies, and our international
allies and partners.
Mr. Nadaner, last month the New York Times ran an article
(``Smuggling of U.S. Technology Is Outpacing Cold War Levels,
Experts Say'', by Ron Nixon, New York Times, March 17, 2018) on
an increase in smuggling of sensitive military technologies to
adversaries like China, Russia, North Korea, and Iran. The
article noted that such smuggling had outpaced even Cold War
levels, and said U.S. military contractors and tech companies
had observed a ten-fold increase in suspicious inquiries
related to weapons and technology purchases from overseas. It
also quoted one expert as noting that despite the take-down of
some technology smuggling networks, U.S. authorities remain
``outgunned'' on this front.
Q.2. How would you crack down on these smuggling networks, and
do you believe you will have sufficient legal authorities and
resources to do it?
A.2. One of my earliest tasks, if confirmed, will be ensuring
that current Export Enforcement authorities and resources are
most effectively focused on the pressing threats to U.S.
national security. Central to intensifying enforcement against
smuggling networks will be making certain that information
flows with other departments and agencies, the intelligence
community, foreign allies and partners, and U.S. industry and
that end-use checks and investigations are occurring to the
maximum extent feasible. I will aim for highly efficient (a)
harnessing of such information, (b) combining of interagency
and international efforts, and (c) using of BIS unique tools--
such as the Entity List, end-use checks, temporary denial
orders, and administrative and criminal penalties--to identify
and dismantle illicit networks. Among my other first tasks, if
confirmed, will be to assess the match among legal
responsibilities, authorities, and resources. I will then work
with the Secretary of Commerce, the Office of Management and
Budget, and the Congress on future resource priorities and
requirements with the goal of ensuring that Export Enforcement
operations keep pace with the changing tactics of our
adversaries.
Q.3. I am also concerned about the transfer of critical
technologies like artificial intelligence, nanotechnology,
cyber, electronic warfare technologies and others to our
adversaries through commercial transactions.
In your experience, should we be concerned that the
transfer of critical technologies to our adversaries through
business transactions like joint ventures is a national
security threat?
If confirmed, what would you do to address these concerns,
and do you believe you will have sufficient legal authorities
and resources to do so?
A.3. If confirmed, I will ensure that Export Enforcement
efforts are focused on all facets of illicit technology
transfer: not solely exports of proscribed technology from the
United States and deemed exports to foreign nationals in the
United States, but also exports of sensitive technology as a
result of a foreign person's investment in, acquisition of,
joint venture in, or partnership with a U.S. company.
Protecting the knowledge of how to build an item can be as
important to U.S. national security as the transfer of the item
itself. I will (a) use all BIS authorities, tools, and
resources to prevent, stop and deter illicit transfer,
regardless of conduit, of technology subject to the Export
Administration Regulations, and (b) work closely with the
Secretary of Commerce, the Office of Management and Budget, and
the Congress to assess future authority and resource
requirements to ensure Export Enforcement operations protect
U.S. technology from unlawful export.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
FROM JEFFREY NADANER
Q.1. In light of strong U.S. economic growth and record
unemployment, I have concerns that the recently imposed Section
232 tariffs on imported steel and aluminum products will have a
detrimental impact to businesses, manufacturers, and most
importantly, consumers. These taxes will likely increase
production costs, jeopardize job creation, and reduce the
purchasing power of American consumers. With that said, I am
encouraged that the Department of Commerce has established a
product-specific exclusion process whereby the Department can
provide tariff relief for U.S. businesses using steel or
aluminum products that are not adequately sourced in the United
States. However, the Department has reviewed and posted only a
fraction of received exclusion petitions, and the petition
process, as proposed, requires businesses to commit a
significant amount of staff time and resources to complete each
individual petition, in many instances at a minute level of
detail. Reforms to both the exclusion petition and the review
process are clearly needed.
I understand that the Office of Export Enforcement does not
have direct oversight over the product-specific exclusion
process; however, the office will play a supporting role in
this process as a subdivision of the Bureau of Industry and
Security (BIS).
If confirmed, how will you work with other offices at BIS
to prioritize the review and approval of the Section 232
exclusion petitions for steel and aluminum products? How do you
intend to devote the necessary staff and resources to complete
this process in an expedited manner?
A.1. The President acted under Section 232 to adjust imports of
aluminum and steel after concurring with the Secretary of
Commerce's findings that aluminum and steel articles were being
imported into the United States in such quantities and
circumstances as to threaten to U.S. national security. The
President has also directed the Secretary of Commerce, in
consultation with other Administration officials, to evaluate
exclusion requests for products, taking into account national
security considerations. Section 232 authority is administered
by the Commerce Department's BIS Office of Export
Administration, which is led by the Senate-confirmed Assistant
Secretary of Commerce for Export Administration and which is
separate and distinct from the BIS Office of Export
Enforcement. It is my understanding that the Assistant
Secretary of Commerce for Export Enforcement and related Office
of Export Enforcement neither administer Section 232 authority,
nor the process involving Section 232 exclusion petitions.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR SASSE
FROM JEFFREY NADANER
Q.1. How will you approach cybersecurity issues during your
tenure?
A.1. If confirmed, I will aggressively enforce violations of
the Export Administration Regulations, including illicit
technology transfer as a result of cybersecurity breaches and
exfiltrations. A key enabler for U.S. success will be expanding
partnerships with U.S. industry, academia, the intelligence
community, law enforcement partners, other departments and
agencies, and our international allies to identify, disrupt,
and penalize perpetrators, while expanding action to mitigate
the effects of cyber-enabled crime.
Q.2. How will you ensure that the United States fairly enforces
our trade laws, without transforming enforcement actions into a
vehicle for advancing protectionism?
A.2. The purpose of the Export Administration Regulations is to
stop the illegal export of sensitive dual-use American
technologies, not to engage in protectionism. If confirmed, I
will not use enforcement for protectionist purposes.
Q.3. In my questions for the record for now-Federal Reserve
Chairman Jerome Powell's November 28th, 2017, confirmation
hearing, I asked now-Chairman Powell if the measure of the
U.S.'s trade deficit with another country (the bilateral trade
deficit) was ``a useful metric to consult to evaluate whether
trade with that country hurts or helps our economy.'' In
response, now-Chairman Powell said:
The overall U.S. trade balance is the most useful
measure for evaluating the impact of trade on the U.S.
economy. That balance is affected by many factors,
including savings and investment in the United States,
economic conditions abroad, and movements in exchange
rates. Bilateral trade deficits are less informative.
For example, U.S. workers and businesses could benefit
when the United States runs a deficit with one country
by importing goods that we use as inputs to produce
goods to sell to another country. In this example, a
focus on the bilateral deficit would obscure the net
effect on the U.S. trade balance and the overall
benefit to the economy.
Do you agree with Chairman Powell that ``[b]ilateral trade
deficits are less informative?''
Is free trade always a net-gain for the U.S. economy? If
not, under what circumstances is it a net-loss?
A.3. President Trump and Secretary Ross have made it a priority
to pursue trade policies and agreements that are fair for all
Americans. As a nominee, I am not privy to Administration
negotiations or deliberations on the overall trade balance or
bilateral trade deficits. Nor, if confirmed in the role of
Assistant Secretary for Export Enforcement, would I have a role
in those deliberations. I am committed, if confirmed, to
enforce the Export Administration Regulations, which are vital
to stopping illegal transfers of sensitive dual-use
technologies, and conveyance to countries and parties under
U.S. sanctions.
Q.4. Is there any instance where the U.S. would benefit from a
trade war with a large country like China?
A.4. The enforcement of export control rules is strictly
focused on (a) stopping the illicit transfer of U.S. sensitive
dual-use technologies, (b) the breach of legal U.S. sanctions
on sanctioned countries and parties, and (c) halting unlawful
cooperation of illegal boycotts against countries friendly to
the United States. If confirmed, I will ensure that the
activities of Export Enforcement are singularly dedicated
toward those duties in rigorous compliance with the Export
Administration Regulations.
------
RESPONSES TO WRITTEN QUESTIONS OF
SENATOR MENENDEZ FROM JEFFREY NADANER
Q.1. I understand that the Administration wants to transfer
control of the export licensing of lethal semiautomatic weapons
and sniper rifles from the jurisdiction of the Department of
State to the Commerce Department, apparently in the belief that
these dangerous weapons have somehow become less harmful. This
move would not only subject these lethal weapons to less-
stringent Commerce controls, but also conveniently remove them
from being subject to Congressional review and disapproval--
despite Congress's action in 2002 to subject them to greater
oversight than tanks and aircraft. You may argue that State
will still be able to intervene in proposed exports through an
interagency review process; to that I point out that State also
proposed the sale of 27,000 assault weapons to the Philippine
national police--who are conducting summary executions in the
streets--and semiautomatic pistols to the same Turkish thugs
who beat peaceful protestors in Washington last year--both of
which were stopped only by the action of the Ranking Member of
the Senate Foreign Relations Committee, so I'm not reassured
that State will intervene, or that Commerce will more plainly
see the foreign policy problems in such sales.
Do you believe that these weapons, which are much more
likely to be misused--including being susceptible for transfer
to terrorist and criminal networks--need to be subject to less-
stringent export requirements, in law and in regulation, than
other lethal arms on the U.S. Munitions List?
A.1. It is my understanding that export licensing reform
involving transfers of some technology controls between the
State and Commerce Departments is the result of deliberations
made by this Administration and the previous one. As a nominee,
I have not been made privy to decisions, deliberations, or
control plans for such items if transferred to the Commerce
Control List. If such a transfer were to occur, licensing for
any exports would, under the law, be under the jurisdiction of
the Assistant Secretary of Commerce for Export Administration,
rather than the Assistant Secretary for Export Enforcement. If
confirmed, should any of the subject items be transferred to
the Commerce Control List, I promise to enforce the law
aggressively and firmly against illegal exports. I will bring
the unique Commerce resources of export enforcement, including
the Entity List, Temporary Denial Orders, expert Special Agents
and enforcement analysts, and criminal and administrative
penalties, to bear in full force. In addition, I will continue
to work with the Federal Bureau of Investigation and Department
of Homeland Security, which will continue to have authority to
investigate illegal activities involving Category I-III items.
Q.2. Since this transfer will remove these items from the AECA
statutory Congressional review process, including the informal
review processes, do you also believe that less Congressional
oversight over the export of these weapons is justified? If
confirmed, will you inform this Committee whenever a license
for the export of these arms transferred from State, at the $1
million statutory threshold, is being considered?
A.2. I am aware of the Congressional notification threshold
under the International Traffic in Arms Regulations. I
understand that any potential transfer of Categories I-III from
the USML to the CCL has been undergoing interagency review. As
a nominee, I have not been privy to those internal
deliberations regarding any proposed rule or the status of any
Congressional notification. However, if confirmed, I am
committed to working with the Congress on these important
issues.
------
RESPONSES TO WRITTEN QUESTIONS OF
SENATOR CORTEZ MASTO FROM JEFFREY NADANER
Q.1. If confirmed as Assistant Secretary, you will be
responsible to uphold the mission of the Department of
Commerce--``to foster, promote, and develop the foreign and
domestic commerce'' and furthermore to foster, serve, and
promote the Nation's economic development and technological
advancement of the United States. Of my State's $9.7 million in
exports, nearly one-fifth of that is to Canada and Mexico--our
partners in NAFTA.
If confirmed to Secretary of Commerce for Export
Enforcement, how do you anticipate the Administration's efforts
to renegotiate NAFTA impacting your role and responsibilities?
Does the President's rhetoric on trade concern you? Please
discuss your position on this Administration's renegotiation of
NAFTA.
A.1. I understand that, under the Secretary of Commerce and by
law, the International Trade Administration (ITA), with its
separately authorized and confirmed Under Secretary of
International Trade, holds the legal responsibility within the
Department for trade agreements and negotiations such as NAFTA.
The Bureau of Industry and Security Export Enforcement headed
by the Assistant Secretary of Commerce for Export Enforcement,
in contrast, is a distinct law enforcement agency exclusively
dedicated to preventing and stopping the illegal export of
controlled, sensitive items. If confirmed and a matter involves
the U.S. Export Administrative Regulations designed to stop
such dangerous transfers, I am committed to working with any
pertinent departments or agencies, including ITA and the United
States Trade Representative (USTR), to enforce the law against
violators.
Q.2. Your role as Assistant Secretary focuses on the export and
re-export of commercial commodities and technology--one of my
State's top exports to NAFTA participants are semiconductors,
electrical equipment, and communications equipment.
How do you anticipate NAFTA's renegotiation affecting
States like mine that export primarily commercial commodities
and technology?
A.2. As a nominee, I am not privy to the internal deliberations
or specifics of the NAFTA negotiations. If confirmed in the
nominated role of Assistant Secretary of Commerce for Export
Enforcement responsible for Bureau of Industry and Security
Export Enforcement, I will not possess authority with respect
to those negotiations or deliberations. If confirmed, I will
work closely with the ITA, USTR, and Congress to enforce U.S.
laws against illegal export of controlled sensitive
technologies.
Q.3. In Nevada, 22,472 workers are employed in industries that
use steel and aluminum.
How do you anticipate the implementation of steel tariffs
affecting our national security, foreign policy, and economic
objectives?
A.3. The President acted under Section 232 to adjust imports of
aluminum and steel after concurring with the Secretary of
Commerce's findings that aluminum and steel articles were being
imported into the United States in such quantities and
circumstances as to threaten to U.S. national security. Section
232 authority is administered by the Commerce Department's BIS
Office of Export Administration, which is led by the Senate-
confirmed Assistant Secretary of Commerce for Export
Administration, and which is separate and distinct from the BIS
Office of Export Enforcement. It is my understanding that the
Assistant Secretary of Commerce for Export Enforcement and
related Office of Export Enforcement does not administer
Section 232 authority.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN
FROM SETH APPLETON
Q.1. You mentioned that you would be interested in doing more
research on tracking what happens to families who leave HUD
assistance.
Do HUD's tenant characteristics reporting systems currently
contain data fields to capture the reasons why assisted
families leave HUD assistance?
A.1. HUD's Multifamily programs (PBRA, 202, 811) collect a
limited set of information on why households leave a unit but
the systems for the PHA operated programs (Public Housing,
Housing Choice Vouchers) do not.
Q.2. If not, how do you propose to build this tracking
capability?
A.2. I think there are three paths that we can pursue
simultaneously. In the shortest run, we can use tenant income
trajectory (data from recertifications prior to exit) as a
means to estimate likelihood that exits were positive. A middle
path will be to build off the data matching agreements HUD's
Office of Policy Development and Research (PDR) has already
established with the Census Bureau and other agencies to see
the characteristics of recent leavers; for example, employment
data that the Census Bureau collects from State agencies. The
third is to investigate the feasibility of updating HUD's forms
to better capture reasons for exit. However, there could be
significant reporting burdens for housing providers associated
with richer varieties of exit data. Another option may be to
conduct an evaluation that includes a one-time leaver survey;
that could tell us a lot about what we don't know at present
and how best to update systems.
Q.3. How do you propose to track and measure self-sufficiency
outcomes among families who leave HUD-assisted housing?
A.3. PDR has already developed a data sharing agreement with
the Department of Health and Human Services' National Directory
of New Hires to assess income change for tenants participating
in the Family Self-Sufficiency program. I hope to expand and
improve on these important data matching partnerships.
Q.4. The FY2016 Consolidated Appropriations Act authorized the
expansion of the MTW Demonstration to an additional 100
agencies and required the rigorous evaluation of demonstration
outcomes.
With regard to HUD's evaluation of the expanded
demonstration, please provide an overview of HUD's evaluation
plan and expected timeline for initiation and conduct of the
evaluation.
A.4. In addition to authorizing expansion, Congress has
provided PDR $10 million in research funding to support the
rigorous evaluation. The Appropriations Act of 2016 required
HUD to create a research advisory committee that has provided
extremely valuable advice on what should be studied and how. My
understanding is that the research PDR has scoped out and will
be procuring shortly would initially establish rigorous random
assignment protocols to two cohorts, the first a study of the
impacts of providing MTW flexibility to small PHAs, the second
a study of alternative rent structures, likely tiered rents and
stepped rents.
Q.5. If confirmed, will you commit to conducting rigorous
research of the MTW demonstration?
A.5. Yes.
Q.6. HUD's 2017 update to the Research Roadmap discusses new
research that can be conducted through the matching of
administrative data between HUD and other Federal agencies.
While this research can provide valuable insights into the uses
of HUD programs and assistance, it also opens up the potential
for HUD-assisted families' private data to be accidentally or
intentionally released.
If confirmed, will you work to protect the privacy of HUD-
assisted families' personal information?
A.6. Yes, this is very important. Any data matching will be
done to carefully protect the privacy of HUD-assisted families.
The matching is for research only and will be aggregated so
that no individual household or person would be identified or
impacted by the match. HUD's formal data matching agreements
with Federal statistical agencies ensure that their rigorous
privacy protection systems apply to the linked data being used
by researchers.
Q.7. HUD has proposed to conduct an evaluation of EnVision
Centers. As I understand it, EnVision Centers will build off of
existing HUD place-based investments. The Advanced Notice of
EnVision Center Demonstration states that ``communities should
be currently participating in one or more Federal place-based
initiatives'', such as Promise Zones. The Choice Neighborhoods
Initiative also offers comprehensive neighborhood
revitalization strategies that involve public and private
partners across many sectors, such as education and health. In
addition, many housing authorities have operated or facilitated
community centers and social service hubs, although funding for
such services have been limited by underfunding of the
Operating Fund and Section 8 Administrative Fees.
If confirmed, how would you isolate the effect of EnVision
Centers from the effect of the underlying place-based strategy
or existing community service hubs in order to measure its
effectiveness?
A.7. If I am confirmed, and Congress provides HUD the authority
to spend resources on an evaluation, I would ask PDR to
evaluate EnVision Centers as it has evaluated other programs.
The initial evaluation would be a process evaluation. This
would be followed by an outcome evaluation. If feasible we
might pursue more rigorous methods. I would look for guidance
from the PDR staff and other researchers to design the most
effective research strategy.
Q.8. In your written and oral testimony, you have committed to
pursuing evidence-based policy during your tenure at HUD.
Given that, how will you approach situations in which the
Administration directs HUD to propose or implement certain
policies, such as the deep budget cuts proposed in HUD's FY2019
budget or the recent Executive Order regarding work
requirements in public assistance programs?
A.8. If confirmed, I am committed to using data and research to
provide the facts to the Secretary and the Administration on
the impact of any proposed program changes.
Q.9. You have noted your interest in long-term disaster
recovery research. I am very concerned that FEMA disaster
recovery assistance programs are not meeting the needs of low-
income families, particularly renters, displaced by the 2017
hurricanes. In Ohio and other States to which families fled
after the 2017 hurricanes, many families displaced by the
storms are still struggling to find affordable housing in
markets in which such housing is already scarce.
HUD officials have stated that they are ready to administer
Disaster Housing Assistance Program (DHAP) assistance through
local housing authorities for these families, but FEMA has not
yet made such assistance available to HUD.
If confirmed, do you intend to consider the needs of, and
barriers facing, low-income families, including renters, in
your research of long-term disaster recovery solutions?
A.9. Yes. The loss of affordable rental housing is one of the
unmet needs included in PDR's analysis for allocating Community
Development Block Grant-Disaster Recovery (CDBG-DR) funds after
a disaster. As we develop research on how we currently pursue
disaster recovery and consider improvements, addressing the
needs of impacted low-income families in need of affordable
rental housing will be an early priority.
------
RESPONSES TO WRITTEN QUESTIONS OF
SENATOR MENENDEZ FROM SETH APPLETON
Q.1. President Trump recently issued an executive order
requiring HUD to identify opportunities to propose new work
requirements on recipients of Federal housing assistance.
I'm concerned the very premise of imposing work
requirements on these low-income families demonstrates a major
misunderstanding of who is actually served by these programs.
More than half, 57 percent, of the 4.6 million households that
receive rental assistance are elderly or disabled. Of those
that aren't elderly or disabled, more than two-thirds are
currently working, but they're barely scraping by. In fact, the
typical working family that receives rental assistance is
headed by a 38-year old mom with two kids--making only about
$18,000 a year. \1\
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\1\ https://www.cbpp.org/research/housing/chart-book-employment-
and-earnings-for-households-receiving-federal-rental#section1
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Many face challenges finding a job that pays enough, or
provides steady enough hours, to lift their family out of
poverty, let alone afford housing in today's market.
The Executive Order states, ``many of the programs designed
to help families have instead delayed economic independence,
perpetuated poverty, and weakened family bonds.'' In your view,
have any of HUD's rental assistance programs ``weakened family
bonds''? If so, how?
A.1. In my view, the income-based rent calculations of rental
assistance programs can create disincentives to family
formation because, when an additional person is added to a
household, the tenant rent contribution automatically increases
by 30 percent of their additional income.
Q.2. I appreciate what you said in your testimony about your
fidelity to evidence-based research. Isn't the very premise of
the Executive Order a conclusion in search of evidence?
A.2. PDR research over the years suggests that rental
assistance as currently administered is a slight deterrent to
increasing earnings or entering the labor force, because of the
direct and immediate correlation between increased earnings and
increased rent payment obligations.
Q.3. Are you familiar with the Center for Budget and Policy
Priorities' extensive research that work requirements in
Federal assistance programs have done little to reduce poverty,
and in some cases, they've pushed families deeper into it?
A.3. I am familiar with CBPP's work on a number of topics, but
your question prompted me to look into this specific research.
Thank you for making me aware of it.
Q.4. Will you commit to incorporate this research into any
recommendation you make to the Secretary on work requirements
for households receiving Federal rental assistance?
A.4. I commit to including all of the known research, including
this research, into discussions in HUD on work requirements.
Q.5. It's been 7 months since Hurricane Maria devastated the
island of Puerto Rico. Having visited the island last year
after the storm, it's clear to me that we need to expedite
longer-term housing assistance, particularly for low-income
households. We've learned from the Government's response to
previous disasters that coordination between FEMA and HUD on
addressing post-disaster long-term housing needs is critical. I
know you have been involved in the Department's response thus
far.
In your view, is HUD equipped and ready to administer a
Disaster Housing Assistance Program for Hurricane Maria, should
FEMA request it?
A.5. Yes. HUD has the capability to administer a Disaster
Housing Assistance Program (DHAP) if requested by FEMA.
Q.6. Has this been communicated to Administrator Long? If so,
what is causing the delay?
A.6. Since these devastating hurricanes made landfall, HUD has
been in close communication with FEMA at the leadership level
at headquarters as well in the field about all aspects of the
housing recovery for HUD- and non-HUD-assisted households,
including HUD's ability to administer a rental assistance
program if established by FEMA. While I cannot speak for FEMA,
disaster recovery is a top priority of mine. If confirmed, I
will be an advocate within the Administration for the
individuals and families displaced by disasters and am
committed to using all available tools in PDR as well as in the
Department to help them rebuild their lives.
Q.7. Please describe what role, if any, you will have in the
Department's implementation of the Affirmatively Furthering
Fair Housing rule.
A.7. PDR is the home to HUD's data and geospatial mapping
capabilities, which have been and will continue to be available
to help grantees achieve positive fair housing outcomes.
------
RESPONSES TO WRITTEN QUESTIONS OF
SENATOR CORTEZ MASTO FROM SETH APPLETON
Q.1. Nearly every community in this Nation has an affordable
rental housing crisis. Half of renters pay more than 30 percent
of their income for rent. It is acute in Nevada. Families
earning about $30,000 a year are unable to find an affordable
home; for every 100 extremely low-income families, there are
only 15 apartments that don't cost more than \1/3\ of their
income. Our waiting lists for public housing and Section 8 are
in tens of thousands; families wait years for help.
Congress provided $42 billion to HUD for FY2018.
With that amount of funding are there any families
CURRENTLY receiving HUD housing assistance that could lose HUD
benefits?
A.1. To the best of my knowledge, the FY2018 funding levels are
adequate to serve at least as many households as HUD currently
serves and possibly more. There is turnover every year in the
housing assistance programs, but as units turnover the funding
appropriated is adequate to make the turnover units and
vouchers available to other needy households on at least a one-
for-one basis on average.
Q.2. Congress provided $42 billion to HUD for FY2018. With that
amount of funding how many new individuals or families that are
not receiving HUD housing assistance now could receive
assistance?
A.2. The recently enacted Appropriations Act for FY18 provides
funding to continue to expand the number of Veterans Affairs
Supportive Housing (VASH) vouchers as well as the number of
households served by the Section 202 and 811 programs by
several thousand units combined. In addition, approximately 10
percent of existing assisted units have normal turnover each
year, which means more than 460,000 new households are served
each year through normal turnover.
Q.3. If some new families or individuals could receive housing
assistance, please explain how--and for whom--those funds will
be made available? For example, for veterans through VASH or
for people with disabilities through the 811 program.
A.3. There are many populations that could benefit from housing
assistance. I would welcome a discussion with Congress and
other stakeholders to hear views on how HUD could prioritize
the turnover units to achieve specific housing goals. PDR did a
study a few years ago that looked at how PHAs currently
prioritize tenants on their waiting lists. I would hope to use
research like this to help inform the discussion.
Q.4. Is the HUD Administration requesting--or receiving--a
recission? Will the funds Congress allocated to HUD be cut?
A.4. I have not been involved in formulating any proposals to
rescind funds that have been appropriated to HUD. As a long-
time former Capitol Hill staffer, I understand and respect that
the budget and appropriations process is an iterative one that
is, in the end, decided by Congress. I commit that, if
confirmed, I will always approach the budget process from the
perspective of advising the Secretary and HUD leadership of the
impacts that budget proposals would have on HUD's programs and
the individuals, families, communities, and organizations they
serve based on the available data and research.
Q.5. If the budget the Trump administration proposed for 2019
was adopted into law, how many of the 5 million families HUD is
currently serving would lose housing assistance under the 2019
HUD proposed budget? If any, how many of those that would lose
assistance would reside in Nevada?
A.5. The proposed FY19 funding level for HUD's housing
assistance programs was designed so that no currently served
households, including those in Nevada, would lose their rental
assistance and would also allow HUD to reuse vouchers upon
turnover. However, to achieve this would require statutory
changes in how rents are calculated for non-elderly nondisabled
households.
There is ongoing research being conducted right now by PDR
into the effects of alternative rent structures as part of
HUD's Rent Reform Demonstration. Further testing on alternative
rents will be looked at as part of the MTW expansion. This
research should yield important data and findings on the
impacts of the tested changes that I am committed to sharing
with the Secretary and the Congress when they are available so
that they can be used as evidence to inform future policy
recommendations and decisions.
Q.6. Under the Trump budget request for 2019, how many
additional families would receive housing assistance
nationwide?
A.6. The proposed funding level for HUD's housing assistance
programs would continue to support all currently supported
households, the reissuance of Housing Choice Vouchers, and the
leasing of units that become vacant in the Project Based Rental
Assistance program. The proposal does include substantial cuts
to the Public Housing program that may result in PHAs choosing
to reposition their inventory, which might lead to public
housing units not being reoccupied after tenants leave. For any
existing public housing tenants that are required to move
because of repositioning of the public housing inventory, they
would receive another assisted housing unit or a housing
voucher.
Q.7. My State is facing an affordable housing crisis, and with
that has come a rise in evictions. Princeton just launched a
new national website with data on evictions. In 2016, Nevada
had 13,478 evictions. In November 2017, new management evicted
35 families from a low-income apartment complex in Reno,
Nevada, and those families were left on the street with nowhere
to go. A constable in Laughlin, Nevada reported a rise in
``strong-arm evictions''--pushing out tenants without using the
correct, by-the-book processes designed to protect both the
tenant and the landlord.
If confirmed to this position, do you plan to lead and
publish research on eviction and reforms that should be
undertaken for eviction practices?
A.7. Yes. PDR has already been working with the author of
Evicted, Professor Matthew Desmond, to improve the data HUD
collects on evictions through its American Housing Survey and,
if confirmed, I am committed to continuing this work and to
publishing other research on the topic.
Q.8. What research does HUD have on best practices to help
families avoid eviction?
A.8. Professor Desmond's work has greatly increased awareness
of the issues surrounding eviction. PDR has not done a great
deal of work on the issue to date, but it would be useful for
PDR to closely examine the potential value of the eviction
module in the 2015 American Housing Survey and the
EvictionLab's national eviction database in connection with
future research opportunities. PDR's evaluation of the
Homelessness Prevention and Rapid Re-Housing program should be
of value because of that program's focus on eviction/
foreclosure prevention and payment of arrearages. Additionally,
HUD's report to Congress, ``Worst Case Housing Needs 2013'',
included a short section on eviction and foreclosure problems.
It found that, in 2013, eviction and foreclosure together
accounted for 2.7 percent of moves for recent movers with
severe problems, compared with 2.0 percent of moves among those
without severe problems. Having severe housing problems
significantly increases the probability of missing rent
payments.
Q.9. What research does HUD have on improving eviction courts
and protecting tenants rights?
A.9. Research in this area is challenging given the fact that
eviction courts function differently from jurisdiction to
jurisdiction. I believe HUD can play an important role in
identifying best practices and disseminating those to
communities across the country. In addition, I would like HUD
to leverage its research partnerships to better explore and
understand this critical issue. As PDR considers future
research it would be beneficial to review what the EvictionLab
has learned.
Q.10. Discrimination in housing is a serious problem. Families
with children, people with disabilities, ethnic and racial
minorities can face barriers to renting and buying homes.
If confirmed, do you plan to conduct research into fair
lending and redlining practices?
A.10. For three decades, PDR has launched major studies of
discrimination using paired-testing methods, including research
on discrimination targeting families with children, people with
disabilities, and ethnic and racial minorities. If confirmed, I
am committed to continuing this important work.
Q.11. If confirmed, what type of data on mortgage lending do
your have access to beyond HMDA?
A.11. In addition to the restricted (agency) HMDA data, HUD has
access to records on all loans insured through FHA, including
standard 203B and other programs (e.g., HECM, 203K, etc.). The
HUD-sponsored Rental Housing Finance Survey (RHFS) collects
data on the sources of financing for rental properties. The
American Housing Survey (AHS), which is sponsored by HUD,
contains several questions on housing finance. HUD also has
interagency agreements to access the new National Mortgage
Database (NMDB), a 5 percent sample of all outstanding mortgage
in the country. HUD also procures data from private vendors,
such as mortgage servicing data, housing and delinquency data,
and delinquency reports.
Finally, there are a variety of public data on mortgage
lending that PDR relies on. For example, FHFA provides several
public-use databases on house prices and GSE acquisitions.
Fannie Mae and Freddie Mac themselves provide public loan-level
acquisition and performance data.
Q.12. While rapid growth and increases in jobs are good for
communities, some get left behind. In my State, rents are
rapidly rising, and wages are not rising to match.
If confirmed, how will you update HUD's research into
preserving affordable housing in hot market cities?
A.12. If confirmed, I will review the issue of hot markets with
PDR's regional economists, as well as stakeholders,
practitioners, academics, and advocates on the ground, and make
effective use of the metro data newly available in the national
American Housing Survey, as reported in ``Worst Case Housing
Needs: 2017 Report to Congress''. Such market information can
be considered along with lessons learned from the Rental
Assistance Demonstration to make preservation more effective.
Q.13. What research does HUD have on investor-owned properties
impact on the local housing market?
A.13. HUD has not done specific research on investor-owned
single-family housing, but accounts for increased single-family
rental inventory when evaluating housing markets in
Comprehensive Housing Market Analysis Reports and market
analyses for FHA multifamily insurance applications. One issue
that could be studied is whether the prevalence of investor-
owned single-family housing contributes to the low levels of
inventory available for resale because continued growth in
rents coupled with low-cost financing locked in during the
crisis makes renting single-family homes a profitable
proposition. The difficulty of such research is the perennial
issue of the owners of rental housing being hard to study. If
confirmed, I will explore the feasibility of studying this
issue with the PDR team.
Q.14. We must prohibit discrimination against Lesbian, Gay,
Bisexual, and Transgender people in housing, including at
homeless shelters. According to the 2015 U.S. Transgender
Survey, 30 percent of transgender Americans have experienced
homelessness at some point in their lives and 12 percent say
they experienced homelessness in the past year because of being
transgender. An estimated 40 percent of homeless youth are
LGBTQ. Housing providers need the HUD guidance to ensure they
follow the law and treat people traumatized by homelessness
with compassion and respect.
Will you urge the Secretary restore the Gender Identity
Guidance as originally posted without delay? If not, why not?
A.14. Nondiscrimination is important to me and I am committed
to ensuring that every person participating in HUD's programs
can access them without being arbitrarily excluded and can feel
safe during their time in the programs. Report language
included as part of the recently enacted Appropriations Act
directs HUD to expedite its review of these resources and, as
appropriate, reissue and make publicly available all policies,
surveys, and guidance within 180 days of enactment of the act.
I think it is important for the Department to meet this
deadline.
Q.15. What is the status of the rent reporting pilot program
that aims to help HUD-assisted tenants build credit scores?
A.15. As part of broader conversation on how rent reporting
would impact HUD assisted tenants, PDR entered into a research
partnership agreement with a private research organization
(PERC) to conduct research using historical rent payment data
of PHAs to ascertain the impact on credit scores, if any, of
reporting tenant payment to Credit Reporting Agencies. The
study is nearing completion and results are expected soon. If
confirmed, I am committed to utilizing the results of this
study to inform future policy discussions on rent reporting for
HUD-assisted tenants.
Q.16. Are there any changes proposed to the reverse mortgage
program? If so, please describe them.
A.16. I am not aware of any current initiatives to change the
HECM program. However, there has been considerable volatility
in the program in the past, which, from my understanding, has
spurred previous changes to it. If confirmed, I am committed to
bringing all available data and research to any policy
discussions involving it.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR JONES
FROM SETH APPLETON
Q.1. An area of concern that I raised with Secretary Carson is
the issue of having adequate sewage for residents of rural
Alabama, especially in the Black Belt. Many of these residents
that reside in public housing units. In the 21st century, I
believe every citizen of our Nation should have access to
adequate sewage at their homes, but unfortunately this is still
an issue we are working with in parts of my State, and I
believe the Federal Government has a role to play.
Can you work with me and my State to potentially get some
research into rural sewage issues and its relationship to
adequate housing?
A.1. Yes. This is an important issue and, if confirmed, I am
committed to working with you and your staff to address it.
Additional Material Supplied for the Record
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