[Senate Hearing 117-704]
[From the U.S. Government Publishing Office]
S. Hrg. 117-704
NOMINATION OF DON GRAVES,
NOMINEE TO BE DEPUTY SECRETARY,
U.S. DEPARTMENT OF COMMERCE
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED SEVENTEENTH CONGRESS
FIRST SESSION
__________
MARCH 10, 2021
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available online: http://www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
53-060 PDF WASHINGTON : 2023
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED SEVENTEENTH CONGRESS
FIRST SESSION
MARIA CANTWELL, Washington, Chair
AMY KLOBUCHAR, Minnesota ROGER WICKER, Mississippi, Ranking
RICHARD BLUMENTHAL, Connecticut JOHN THUNE, South Dakota
BRIAN SCHATZ, Hawaii ROY BLUNT, Missouri
EDWARD MARKEY, Massachusetts TED CRUZ, Texas
GARY PETERS, Michigan DEB FISCHER, Nebraska
TAMMY BALDWIN, Wisconsin JERRY MORAN, Kansas
TAMMY DUCKWORTH, Illinois DAN SULLIVAN, Alaska
JON TESTER, Montana MARSHA BLACKBURN, Tennessee
KYRSTEN SINEMA, Arizona TODD YOUNG, Indiana
JACKY ROSEN, Nevada MIKE LEE, Utah
BEN RAY LUJAN, New Mexico RON JOHNSON, Wisconsin
JOHN HICKENLOOPER, Colorado SHELLEY MOORE CAPITO, West
RAPHAEL WARNOCK, Georgia Virginia
RICK SCOTT, Florida
CYNTHIA LUMMIS, Wyoming
David Strickland, Staff Director
Melissa Porter, Deputy Staff Director
George Greenwell, Policy Coordinator and Security Manager
John Keast, Republican Staff Director
Crystal Tully, Republican Deputy Staff Director
Steven Wall, General Counsel
C O N T E N T S
----------
Page
Hearing held on March 10, 2021................................... 1
Statement of Senator Cantwell.................................... 1
Statement of Senator Wicker...................................... 4
Article dated February 23, 2021 entitled, ``A Commerce
nominee's formerly enslaved ancestors ran a taxi service
where the department is now headquartered'' by Courtland
Milloy, Columnist.......................................... 18
Statement of Senator Klobuchar................................... 20
Statement of Senator Thune....................................... 22
Statement of Senator Blumenthal.................................. 23
Statement of Senator Cruz........................................ 25
Statement of Senator Tester...................................... 26
Statement of Senator Blackburn................................... 28
Statement of Senator Rosen....................................... 29
Statement of Senator Lummis...................................... 31
Statement of Senator Peters...................................... 32
Statement of Senator Scott....................................... 34
Statement of Senator Hickenlooper................................ 36
Witnesses
Don Graves, Nominee to be Deputy Secretary, U.S. Department of
Commerce....................................................... 5
Prepared statement........................................... 6
Biographical information..................................... 7
Appendix
Response to written questions submitted to Don Graves by:
Hon. Amy Klobuchar........................................... 41
Hon. Brian Schatz............................................ 41
Hon. Tammy Baldwin........................................... 42
Hon. Jacky Rosen............................................. 42
Hon. Kyrsten Sinema.......................................... 43
Hon. Raphael Warnock......................................... 45
Hon. Roger Wicker............................................ 46
Hon. Ted Cruz................................................ 48
Hon. Jerry Moran............................................. 59
Hon. Marsha Blackburn........................................ 62
Hon. Mike Lee................................................ 63
Hon. Rick Scott.............................................. 66
NOMINATION OF DON GRAVES,
NOMINEE TO BE DEPUTY SECRETARY,
U.S. DEPARTMENT OF COMMERCE
----------
WEDNESDAY, MARCH 10, 2021
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 10 a.m., in room
SR-253, Russell Senate Office Building, Hon. Maria Cantwell,
Chair of the Committee, presiding.
Present: Senators Cantwell [presiding], Klobuchar,
Blumenthal, Peters, Tester, Hickenlooper, Wicker, Thune, Cruz,
Scott, and Lummis.
OPENING STATEMENT OF HON. MARIA CANTWELL,
U.S. SENATOR FROM WASHINGTON
The Chair. Good morning. The Commerce committee--Commerce,
Science, and Transportation Committee will come to order. This
morning, we are reviewing the nomination of the Deputy
Secretary position for Mr. Don Graves. Welcome to the Committee
and we look forward to hearing from you this morning and
hearing your testimony. Before I begin, or before we begin I
should say, I want to take a moment to acknowledge what is
really a solemn milestone.
Today marks the two year anniversary of the Ethiopian
Airlines Flight 302 crash. And we honor and remember the 157
victims and their families, along with 189 lives lost on the
Lion Air Flight 610. These tragedies remind us that there is
still much at stake in aviation safety policy. In December,
Congress passed important safety reform legislation, and these
comprehensive safety reform laws now must be implemented by the
FAA. It requires the disclosure of new and novel systems and
requires those systems like MCAS to be fully vetted by the FAA.
The new law also requires manufacturers to adopt safety
management systems, create safe reporting structures, and make
sure that new whistleblower protections are in place.
So I am grateful to the families for their tireless
advocacy in this effort and clearly for the great work that our
committee did in trying to address the crisis. Now, I will
turn----
Senator Wicker. Will the Chair yield on that?
The Chair. Yes.
Senator Wicker. I thank Senator Cantwell for mentioning
this and indeed this is one of the most gripping, one of the
saddest series of events that we have had to deal with. I think
this committee rose to the occasion, and it was a pleasure to
collaborate with you, Senator Cantwell, and with other members
of this committee. I think we ended up with a great product.
We ended up in our oversight function, finding a lot of
deficiencies that come with human nature and we have
legislative legislation in place to address that. And so it is
appropriate that we pause on this solemn anniversary, but also
for me to thank you and members on both sides of the dais and
our terrific staff for coming together with a product that
should provide much of the answer. So, thank you.
The Chair. Well, thank you, Senator Wicker. And thank you.
Thank you for your leadership. And we will look forward to
continuing to work with you on our oversight role of the FAA.
But thank you for that statement. We will now turn to the
nomination of Mr. Graves. So welcome again to the Commerce
committee. I am excited to have this nominee as Deputy
Secretary of the Department of Commerce before us today,
because I am confident he will be a strong partner for the
Committee, and our efforts, and all of our efforts to help
support an innovation and growth to our economy.
Mr. Graves, thank you for your willingness to serve and we
look forward to hearing your vision. If confirmed, you would
bring tremendous experience to the role both from public and
private sector experience. He is focused on supporting local
communities, developing workforce to compete in the today's
environment, helping to support good paying jobs, helping
entrepreneurs, and making sure that we continue to tackle some
of the many challenges that our Nation faced. He has served as
Deputy Secretary for the Small Business--Secretary for Small
Business and Policy Advisor at the Department of Treasury. He
has served as Director of Public Policy at the Business
Roundtable where he saw firsthand what makes some of our most
successful businesses work in the private sector.
And he has been the Executive Director of President Obama's
Council on Jobs and Competitiveness, a critical role in the
economic recovery after the Great Recession. Also has been
Executive Vice President, head of Corporate Responsibility and
Community Relations for Key Bank, where he led sustainable
economic development initiatives, and I would just support--I
appreciate their efforts. One of the institutions that used the
EXIM Bank pretty fully and so we appreciate that because that
is very supportive of an export economy. And he also served as
President Obama's point person for the Federal Detroit Working
Group and then on Vice President Biden, Beau Biden Cancer
Moonshot Initiative.
Not unlike the other roles you have had, Mr. Graves, this
is a big job under any circumstances, but right now it seems
like an immense challenge. Our country is reeling from the
deadly pandemic. Our economy is still picking up the pieces
from the economic fallout that has pursued because of that. To
recover, we must focus on empowering workers throughout the
country to compete and thrive in a 21st century economy.
When I talk to people throughout the State of Washington, I
hear the same message over and over again. Our workers need the
tools and resources to compete, and our businesses need to have
the opportunities that trade relationships offer for them. They
would like to open up markets. They get that 95 percent of
consumers that live outside the United States and that we have
crossed the threshold of a population that is middle class, and
it is a growing economic opportunity for American goods and
products. So, we want to know how the Department is going to
use its opportunity there to help with the American economy. It
plays a key role in export promotion through the International
Trade Administration's U.S. Commercial Service.
American jobs depend on trade and growing trade is
essential. In 2019, our state exported over $60 billion worth
of goods to countries all over the world. So that is planes and
cloud services and cherries and apples and wheat and fish, and
just to mention a few, but our state is a very trade dependent
state. I actually point out to people that I am pretty sure
that we were already trading with China before Lewis and Clark
showed up. So we want to continue that effort. In the previous
Administration, unilateral approaches cost us 245,000 American
jobs, and companies at least $1.7 trillion in market
capitalization. So I hope that the Biden Administration and
your team, particularly at the Department of Commerce, will set
a goal to help us grow U.S. exports and make sure we meet that.
I know the Obama Administration had a goal of increasing
exports by 50 percent over 5 years. And while they fell short,
it was you know, they still had a very robust goal. I think
they had something like a 60 or 65 percent increase of where
they were--I mean, they got 65 percent of their goal. And so I
think this is a very good goal and I hope that we will look at
that. I also hope you prioritize the U.S.-EU Privacy Shield
Agreement and the free flow of data across borders. My
colleague, Ranking Member Wicker, has been consistently
pointing out how critical this Agreement is and to get an
agreement where we can move forward. I also want to Biden
Administration to elevate the role of science in
decisionmaking. Over the last 4 years, we saw science ignored
and undermined and we can't afford that. Our Pacific Northwest
fisheries continue to need a science-based fisheries management
system. And this is so important for sustainable fisheries, for
the economic impact that they have on our communities.
In 2018, commercial fishermen caught more than 9.8 billion
pounds of seafood, and that in turn supported seafood
processors, shipbuilders, trade, and restaurant jobs total.
There is more than a million jobs across the United States
supported by the seafood sector. And I am sure you probably
know from your previous jobs that there is a lot of
international issues here, a lot of market access issues here.
But I believe that our sustainable fisheries policy is the idea
that we should be exporting, not the--so that people understand
what sustainable fisheries around the globe really look like
and what we can do.
Another area of science will be weather forecasting and
weather forecasting infrastructure. The United States must be a
leader in predicting and forecasting weather. Another crucial
investment is just the fact that that information, on whether
it makes so many other decisions for shipping, for maritime,
for agriculture, all depend--aero--actually space, NASA,
everybody needs this information. So I hope we can count on you
to help bridge that gap. You will also, as oversight, be given
additional responsibility to help bridge the digital divide,
particularly in tribal communities.
A 2019 report from the FCC said that less than half of
those households in Indian country have high speed broadband
service--27 percent gap from non-tribal areas. So we tried to
enhance that in the December COVID package, and we will look
forward to working with you on that. And I will have questions
about the census when we get to our Q&A, because we certainly
think of that is a priority as well. So now I will turn to my
colleague, Senator Wicker, for his opening statement.
STATEMENT OF HON. ROGER WICKER,
U.S. SENATOR FROM MISSISSIPPI
Senator Wicker. Thank you, Senator Cantwell, for holding
this hearing today on the nomination of Don Graves to serve as
Deputy Secretary of Commerce. I want to welcome Mr. Graves to
his first appearance, but undoubtedly not his last appearance
before this committee. Mr. Graves has experience in both public
and private sectors, and so I hope that his prior Government
service and positions such as Director of Domestic and Economic
Policy for then Vice President Joe Biden, leadership roles at
the U.S. Department of the Treasury during the Obama
Administration, and his past work as Senior Manager for a major
bank based financial services company will give him a balanced
view of the proper cooperative relationship between the
Government and free enterprise.
It is imperative that we get this balance right as we
respond to the economic damage caused by the pandemic and work
together to build a stronger economy for the future. I am very
interested in hearing from Mr. Graves this morning on his plans
to assist Secretary Raimondo and President Biden in addressing
the many and varied challenges which are pending before the
Department of Commerce. And Senator Cantwell outlined quite a
number of those very capably. I believe this pressing list of
policy issues has a broad scope and includes a fair resolution
of an interest--an issue that is of interest to us in the Gulf
of Mexico, red snapper catch limits, and expanding NOAA's use
of un-crewed maritime systems.
Additionally, through the work of the National
Telecommunications and Information Administration, NTIA, the
Commerce Department must remain engaged on Federal spectrum
management issues while promoting 5G deployment and increasing
rural broadband access into many of the areas mentioned by the
Committee Chair. The Department's role in advancing space
commerce should also continue, and I hope we will not retreat
from the ambitious schedule set up by the previous
Administration with regard to putting a woman on the Moon by
the year 2024 and Americans on the surface of Mars by the year
2029. We need to continue capturing the imagination of the
American people on this issue that unites us.
The Department's role in advancing space commerce should
also continue, and cybersecurity controls must be strengthened.
These are just a few of the wide ranging matters on which Mr.
Graves will have the opportunity to contribute, if and when he
is confirmed as the Deputy Secretary of Commerce. I am grateful
for his willingness, again, to take on significant assignments,
and I appreciate his testimony as the Committee considers his
nomination. Thank you, ma'am.
The Chair. Thank you, Senator Wicker. And now we will turn
to the Nominee. Mr. Graves, again, welcome to the Committee and
we look forward to your testimony.
STATEMENT OF DON GRAVES, NOMINEE TO BE DEPUTY SECRETARY, U.S.
DEPARTMENT OF COMMERCE
Mr. Graves. Chair Cantwell, Ranking Member Wicker, and
members of the Committee, I am honored and humbled to be here
today. I want to begin by thanking President Biden for his
faith and confidence in nominating me for the position of
Deputy Secretary of the U.S. Department of Commerce. I also
want to thank my family for their support, without which my
career and this nomination would not have been possible. My
career in Government, the private sector, and nonprofits has
been dedicated to ensuring that economic opportunity is
inclusive and broad based, supporting working families and
strengthening the communities in which they live.
From my work in community development to my time of the
President's Jobs Council and the Cancer Moonshot Initiative, my
experiences took me to small towns in the Mississippi Delta, to
the urban core in Milwaukee, from the colonias in Texas to
tribal communities in the Dakotas. I have heard from
manufacturing workers who lost their jobs, parents struggling
to educate their kids during the pandemic because they lack
broadband access, and scientists tackling the pernicious impact
of cancer, something far too many American households,
including my own, have had to deal with. For each of us who
commit to public service, this is personal. I come from a long
line of entrepreneurs and educators who worked hard to carve
out a small piece of the American dream for their family and
their community.
My personal and family history is tied closely to the
Department of Commerce. It includes my four times grandparents
who were former slaves but were able to build a successful
horse and buggy taxi business here in Washington. The property
they acquired for that business and their home is today the
site of the Commerce Department headquarters. Their son owned
and operated the Nation's premier hotel during the 1800s mere
blocks away. This first generation descendant of slaves went on
to design a life preserver for use on boats and ships that
plied our Nation's waterways, becoming one of the Nation's
first patent holders of color through the U.S. Patent and
Trademark Office.
I grew up between Cleveland, Ohio, on the banks of one of
the world's greatest sources of fresh water and the Maryland
shore, where I enjoyed fishing and crabbing. I spent countless
weekends with my grandmother in her farming community running
through the hills and woods in rural Ohio, where a special day
could include a trip to the Five and Dime or the weekly
quilting bee at the local church. I witnessed firsthand one of
the world's greatest environmental success stories, that of the
Cuyahoga River, which went from being known as the river that
burned to a travel destination and the site of the Nation's
best urban kayaking, a result of extensive local, state, and
Federal partnerships that leveraged data and science to drive
decisionmaking and tourism investments.
Growing up and working in these different places, I have
met Americans from all walks of life and geographies, people
pursuing dreams for themselves and their families. While they
are important differences between them, including the
challenges of systemic inequities, Americans by and large want
the same thing. As President Biden said, we all just want a
fair shot. But for far too many people, the promise of the
American dream to start and grow a business, to develop an idea
into a product that can be sold all over the world, to work
hard at a job that fulfills us and allows us to raise a family
in relative comfort and stability remains elusive. Too many
Americans begin their journey without the tools or support
necessary to get past the hoping and dreaming stage. I believe
that it is our duty to help provide the opportunity to turn
these dreams into lives of dignity.
We know that Federal, tribal, state, territorial, and local
Governments, their resources, data, and research and their most
important assets, the experienced and capable civil servants
who devote their lives to serving our nation, are critical to
ensuring the American people and our economy can reach their
full potential. It is also our duty to ensure a level playing
field for American workers and businesses as we compete around
the world, that we invest in strong international partnerships
to bolster our domestic economic growth.
And if confirmed, I will focus on recovering from the
economic crisis caused by the COVID-19 pandemic, protecting our
critical infrastructure and our National Security, and taking
strong actions to ensure bad actors are held accountable for
illegal and anti-competitive actions that hurt American
companies and the American people.
If confirmed, I will put people and communities first, data
and science will always drive my decisionmaking, and I will
rely on the deep expertise of the Department's and its bureaus
career staff. Thank you for the opportunity to testify today
and I look forward to your questions.
[The prepared statement and biographical information of Mr.
Graves follow:]
Prepared Statement of Don Graves, Nominee to be Deputy Secretary,
U.S. Department of Commerce
Chair Cantwell, Ranking Member Wicker, and Members of the
Committee, I am honored and humbled to be here today.
I want to begin by thanking President Biden for his faith and
confidence in nominating me for the position of Deputy Secretary of the
U.S. Department of Commerce. I also want to thank my family for their
support, without which my career and this nomination would not have
been possible.
My career, in government, the private sector, and nonprofits, has
been dedicated to ensuring that economic opportunity is inclusive and
broad-based, supporting working families and strengthening the
communities in which they live. From my work in community development,
to my time running the President's Jobs Council and the Cancer Moonshot
initiative, my experiences took me to small towns in the Mississippi
Delta, to the urban core in Milwaukee; from the colonias in Texas, to
tribal communities in the Dakotas.
I have heard from manufacturing workers who have lost their jobs,
parents struggling to educate their kids during the pandemic because
they lack broadband access, and scientists tackling the pernicious
impact of cancer, something far too many American households, including
my own, have reckoned with.
For each of us who commit to public service, this is personal. I
come from a long line of entrepreneurs and educators who worked hard to
carve out a small piece of the American dream for their family and
their community.
My personal and family history is tied closely to the Department of
Commerce. It includes my four-times great grandparents who were former
slaves but were able to build a successful horse and buggy taxi
business here in Washington. The property they acquired for that
business and their home, is today the site of the Commerce Department
headquarters. Their son owned and operated the Nation's premier hotel
during the 1800s, mere blocks away. This first generation descendent of
slaves went on to design a life-preserver for use on boats and ships
that plied our Nation's waterways, becoming one of the Nation's first
patent-holders of color through the U.S. Patent and Trademark Office.
I grew up between Cleveland, Ohio, on the banks of one of the
world's greatest sources of freshwater, and the Maryland shore, where I
enjoyed fishing and crabbing. I spent countless weekends with my
grandmother in her farming community, running through the hills and
woods in rural Ohio, where a special day could include a trip to the
five and dime or the weekly quilting bee at the local church.
I witnessed firsthand one of the world's greatest environmental
success stories: that of the Cuyahoga River, which went from being
known as the river that burned to a travel destination and the site of
the Nation's best urban kayaking; a result of extensive local, state
and Federal partnerships that leveraged data and science to drive
decision making and tourism investments.
Growing up and working in these different places, I've met
Americans from all walks of life and geographies, pursuing dreams for
themselves and their families. While there are important differences
between them, including the challenges of systemic inequities,
Americans by-and-large want the same thing. As President Biden has
said, we all just want a fair shot.
But for far too many people, the promise of the American dream: to
start and grow a business; to develop an idea into a product that can
be sold all over the world; to work hard at a job that fulfills us and
allows us to raise a family in relative comfort and stability, remains
elusive. Too many Americans begin their journey without the tools or
support necessary to get past the hoping and dreaming stage.
It is our duty to help provide the opportunity to turn those dreams
into lives of dignity. We know that federal, tribal, state, territorial
and local governments--their resources, data and research, and their
most important assets, the experienced and capable civil servants who
devote their lives to serving our nation--are critical to ensuring the
American people and our economy can reach their full potential.
It is also our duty to ensure a level playing field for American
workers and businesses as we compete around the world, that we invest
in strong international partnerships to bolster our domestic economic
growth. If confirmed, I will focus on recovering from the economic
crisis caused by the COVID-19 pandemic, protecting our critical
infrastructure and our national security, and taking strong actions to
ensure bad actors are held accountable for illegal and anti-competitive
actions that hurt American companies and the American people.
If confirmed, I will put people and communities first. Data and
science will always drive my decision making and I will rely on the
deep expertise of the Department's career staff.
Thank you for the opportunity to testify today. I look forward to
your questions.
______
a. biographical information
1. Name (Include any former names or nicknames used):
Donet D. Graves, Jr.
Don (nickname)
2. Position to which nominated: Deputy Secretary, U.S. Department
of Commerce.
3. Date of Nomination: January 20, 2021.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
Office: Information not provided.
5. Date and Place of Birth: April 11, 1970; Garfield Heights, OH.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).
Melissa Tessmer Graves, Chief Executive Officer, Journey Center
for Safety and Healing (formerly known as Domestic Violence and
Child Advocacy Center)
7. List all college and graduate degrees. Provide year and school
attended.
Williams College, BA (Political Science, History), 1992
Georgetown University Law Center, JD, 1995
8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.
KeyBank, N.A., Executive Vice President & Head of Corporate
Responsibility and Community Relations. (2018-2020)--management
level
KeyBank, N.A., Senior Vice President & Senior Director,
Corporate Community Initiatives and Relations. (2017-2018)--
management level
The White House, Deputy Assistant to the President & Counselor
to the Vice President. (2014-2017)--management level
Executive Director, Federal Detroit Working Group, (2013-
2014)--management level
Executive Director, President's Council on Jobs and
Competitiveness, (2011-2014)--management level
U.S. Department of the Treasury, Deputy Assistant Secretary for
Small Business, Community Development and Housing Policy,
(2010-2014)--management level
Graves, Horton, Askew & Johns, LLC Member, (2009-2010)--
management level
Graves & Horton, LLC, Attorneys at Law, Partner (2005-2009)
Business Roundtable, Director of Public Policy (2003-2005)
Director of Strategic Partnerships, (2000-03)--management level
United States Department of the Treasury, Policy Advisor, 1999-
2000--advised on policy positions relevant to the Commerce
Department
Graves & Horton, LLC, Associate, (1995-1998)
Organization for a New Equality (1995-1998), Director,
Washington Office
9. Attach a copy of your resume. Attached as Appendix A.
10. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last ten years.
FDIC, Advisory Committee on Economic Inclusion (10/2019-9/2020)
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last ten years.
MetroHealth Foundation, Inc., Board of Directors (9/2017 to
present)
Community Reinvestment Fund, USA, Board of Trustees (10/2017-9/
2020)
JumpStart, Inc., Vice Chairman, Board of Directors (3/2019-9/
2020)
12. Please list each membership you have had during the past ten
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religiously affiliated organization, private club, or other membership
organization. (For this question, you do not have to list your
religious affiliation or membership in a religious house of worship or
institution.). Include dates of membership and any positions you have
held with any organization. Please note whether any such club or
organization restricts membership on the basis of sex, race, color,
religion, national origin, age, or disability.
Bass Center for Placemaking, Brookings Institution, Advisory
Board Member (11/2018-9/2020)
Commission on Economic Inclusion, Greater Cleveland
Partnership, Advisory Board Member (5/2018-9/2020)
Cuyahoga Community College, Board of Visitors (9/2019-9/2020)
Cleveland Rising, Co-Chair (6/2019-9/2020)
Sigma Pi Phi, Tau Boule, member (7/2019 to present)
Leadership Cleveland, Class of 2019 (Cleveland, OH)
13. Have you ever been a candidate for and/or held a public office
(elected, non-elected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount, and whether you are
personally liable for that debt.
No.
14. List all memberships and offices held with and services
rendered to, whether compensated or not, any political party or
election committee within the past ten years. If you have held a paid
position or served in a formal or official advisory position (whether
compensated or not) in a political campaign within the past ten years,
identify the particulars of the campaign, including the candidate, year
of the campaign, and your title and responsibilities.
Democratic National Committee, 2020 Platform Drafting Committee
Member.
15. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past ten years.
Peters for Michigan, 10/28/19, $2000
KeyCorp Advocates Fund, biweekly until 9/18/20 ($115.38),
totaling $4961.34
Biden for President, multiple commitments, totaling $1358.82
Ken Harbaugh for Congress, 6/30/18, $1000
16. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements. None.
17. Please list each book, article, column, Internet blog posting,
or other publication you have authored, individually or with others.
Include a link to each publication when possible. Also list any
speeches that you have given on topics relevant to the position for
which you have been nominated. Do not attach copies of these
publications unless otherwise instructed.
Publications
``Dealing all of our communities into the bargain'', Biden
Forum, Biden Foundation, August 8, 2018. (https://
bidenforum.org/dealing-all-of-our-communities-into-the-bargain-
199d30cc4906)
``Fostering Innovation Across America,'' March 2011. (https://
www.treasury.gov
/connect/blog/Pages/Fostering-Innovation-Across-America.aspx)
Speeches/Interviews
During my tenure as an appointed Federal official and while in
private life, I have delivered informal remarks in a variety of forums
on job creation, economic growth, and other topics related to the work
of the Deputy Secretary of Commerce. Below is a list of speeches and
addresses which I have been able to identify from my records and
electronic searches.
CAMEO Summit on Microenterprise, May 2, 2011
Vermont Business and Industry EXPO, Leahy Business Breakfast,
May 25, 2011.
POLITICO's Jobs of the Future Event, Washington, DC, July 26,
2011 (available at https://www.politico.com/video/2011/07/don-
graves-at-politicos-jobs-of-the-future-event-
013619?o=48&filterVideo=)
HOPE Global Summit: The Future of Global Jobs, December 11,
2012 (available at https://www.youtube.com/watch?v=U-JqT_kGfNo)
Association for Enterprise Opportunity, One in Three Campaign
Keynote, May 29, 2012
Annual Meeting, Women Impacting Public Policy, July 18, 2012.
Discussion on Microenterprise, Aspen Institute, November 25,
2013.
Rainbow Push Wall Street Plenary, February 13, 2014.
AI3 in DC: Developing a Policy Framework for Impact Investing,
Aspen Institute, February 27, 2014 (speech available at https:/
/www.aspeninstitute.org/videos/ai3-dc-developing-policy-
framework-impact-investing/)
Inclusiv 40th Anniversary Conference, May 14, 2014.
Detroit Public Television, Interview, June 3, 2014
(available at https://www.youtube.com/watch?v=SiUtnR1j8Js)
Remarks to the Levine Cancer Institute, Charlotte, NC, November
30, 2016 (available at https://www.facebook.com/
LevineCancerInstitute/videos/mr-don-graves-better-known-as-the-
cancer-czar-counselor-to-the-white-house-came-/11773
10942360459/)
PBS/Frontline, Interview for ``The Choice 2020,'' July 27,
2020, available at https://www.pbs.org/wgbh/frontline/
interview/don-graves/
Announcement of Nomination for Deputy Secretary, U.S.
Department of Commerce, Wilmington, DE (speech available at
https://www.youtube.com/watch
?v=Gi46WiN3M 8)
18. List digital platforms (including social media and other
digital content sites) on which you currently or have formerly operated
an account, regardless of whether or not the account was held in your
name or an alias. Include the name of an ``alias'' or ``handle'' you
have used on each of the named platforms. Indicate whether the account
is active, deleted, or dormant. Include a link to each account if
possible.
All of the following accounts are active.
LinkedIn: www.linkedin.com/in/don-graves-8668887
Facebook: https://www.facebook.com/don.graves.3158
Instagram: https://instagram.com/dgravesjr
Twitter: https://twitter.com/dgravesjr
19. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each
testimony.
Senate Committee on Small Business and Entrepreneurship,
Hearing on Small Business Jobs Act, May 19, 2011.
House Committee on Financial Services, Hearing on Diversity in
the Financial Services Sector, February 7, 2008.
20. Given the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated, what in your background or employment experience do you
believe affirmatively qualifies you for appointment to the position for
which you have been nominated, and why do you wish to serve in that
position?
I have spent the bulk of my career, inside and outside the Federal
government, focused on ways to support economic growth and development
for all of our communities--urban, rural, tribal and everything in
between--and supporting American workers and entrepreneurs. During that
time, I have prided myself on my ability to achieve results and deliver
for people, businesses and communities. I led the President's Council
on Jobs and Competitiveness during the Obama administration, bringing
together the business community, labor and academia to identify
strategies and policies that could drive national competitiveness.
21. What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
An organization the size and scale of the Commerce Department
requires ongoing monitoring and assessment. Ensuring strong oversight
and accounting is essential to the functioning of the Department and
something for which I have experience through my career. At the U.S.
Department of the Treasury, I was tasked with overseeing the creation
and stand up of new multiple billion dollar programs as well as
oversight of the Community Development Financial Institution Fund for
which I developed strong controls to ensure responsible management of
taxpayers' dollars. These programs were reviewed by both the Treasury
Inspector General and outside, independent auditors who found the
programs to have been managed appropriately and effectively. I was also
President Obama's lead for the recovery of the City of Detroit,
including coordinating the work of a large Federal interagency effort
and more than $300M in investments in a variety of agencies in the
city. Additionally, I led the development of the Cancer Moonshot on
behalf of then-Vice President Biden, coordinating efforts across
agencies, laboratories, research facilities and private companies aimed
at significantly advancing progress on cures for cancers.
22. What do you believe to be the top three challenges facing the
department/agency, and why?
First, the combined crises of the ongoing global pandemic and its
impact on the department's ability to carry out its mission at the same
time as an economic crisis affecting communities, families and
businesses across the country is the top challenge facing the
Department.
Second, we must also recommit ourselves to ensuring science is at
the core of Department of Commerce's actions and policies, without
regard for politics.
Finally, protecting our national security and American access to
global markets in a time of growing global competitiveness will be a
key challenge facing the Department.
b. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
In September 2020, I resigned from my position with KeyBank, N.A.
which is the primary subsidiary of KeyCorp. I currently hold restricted
stock. I do not own stock, unvested restricted stock units, unvested
restricted stock or stock options in KeyCorp. (KEY). As soon as
practicable but not later than 120 days after confirmation, I will
divest my unrestricted stock. I will forfeit any stock in KEY that
remains restricted 120 days after my confirmation. I will not
participate personally and substantially in any particular matter that
to my knowledge has a direct and predictable effect on the financial
interests of KEY, until I have divested it, unless I first obtain a
written waiver, pursuant to 18 U.S.C. Sec. 208(b)(1), or qualify for a
regulatory exemption, pursuant to 18 U.S.C. Sec. 208(b)(2). In
addition, pursuant to the impartiality regulation at 5 C.F.R.
Sec. 2635.502, for a period of one year after my resignation from KEY,
I will not participate personally and substantially in any particular
matter involving specific parties in which I know KEY is a party or
represents a party, unless I am first authorized to participate,
pursuant to 5 C.F.R. Sec. 2635.502(d).
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? If so,
please explain.
No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. Explain how you will
resolve each potential conflict of interest.
In connection with the nomination process, I have consulted with
Department of Commerce ethics officials and the Office of Government
Ethics to identify any potential conflict of interest. Any potential
conflict of interest will be resolved according to the terms of the
ethics agreement that I have entered into with the Commerce
Department's Designated Agency Ethics Official, I understand will be
provided to this Committee. I am not aware of any potential conflict of
interest other than those identified in my ethics agreement. In the
event that an actual or potential conflict of interest arises during my
appointment, I will consult with the Commerce Department's ethics
officials and take the actions necessary to resolve the conflict.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last ten years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. Explain how you will resolve
each potential conflict of interest.
Any potential conflicts of interest have been identified in my
ethics agreement, which will be provided to the Committee, and will be
resolved in accordance with the terms of that ethics agreement.
5. Identify any other potential conflicts of interest, and explain
how you will resolve each potential conflict of interest.
I am not aware of any other potential conflicts of interest that
may arise other than those identified in my ethics agreement. However,
should a conflict arise during my appointment, I will consult with the
Commerce Department's ethics officials and take the actions necessary
to resolve the conflict.
6. Describe any activity during the past ten years, including the
names of clients represented, in which you have been engaged for the
purpose of directly or indirectly influencing the passage, defeat, or
modification of any legislation or affecting the administration and
execution of law or public policy.
On April 8, 2020, I provided comments (on behalf of my employer,
KeyBank) on a proposed rulemaking from the Office of the Comptroller of
the Currency regarding revisions to the Community Reinvestment Act of
1977.
A copy of those comments are available at https://www.fdic.gov/
regulations/laws/federal/2020/2020-community-reinvestment-act-
regulations-3064-af22-c-715
.pdf
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics,
professional misconduct, or retaliation by, or been the subject of a
complaint to, any court, administrative agency, the Office of Special
Counsel, professional association, disciplinary committee, or other
professional group? If yes:
a. Provide the name of agency, association, committee, or group;
b. Provide the date the citation, disciplinary action, complaint, or
personnel action was issued or initiated;
c. Describe the citation, disciplinary action, complaint, or
personnel action;
d. Provide the results of the citation, disciplinary action,
complaint, or personnel action.
No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? If so, please explain. No.
3. Have you or any business or nonprofit of which you are or were
an officer ever been involved as a party in an administrative agency
proceeding, criminal proceeding, or civil litigation? If so, please
explain. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain. No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination. None.
d. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees, and that
your department/agency endeavors to timely comply with requests for
information from individual Members of Congress, including requests
from members in the minority? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
______
Appendix A
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The Chair. Thank you, Mr. Graves. Thank you for your
testimony. And again, thank you for your past service. Let me
just start, I mentioned the Census. While it is important that
we have accurate data, the Federal delay that I think now is
being set to several months will cause many states to--it makes
challenges for them as they try to meet their constitutional
duties on redistricting.
So some are already struggling with how to get meaningful
public input with a truncated timeline. So if confirmed, will
you work to address these State issues and address the accuracy
and timeliness of the census?
Mr. Graves. Thank you, Madam Chair. I absolutely will work
on that issue. I will also listen to the experts, the career
experts at the Department and not allow politics to impact the
accuracy and timeliness of the of the census.
The Chair. Thank you. There are several pending fishery
disaster determinations for my state, such as Washington, Puget
Sound Coho Salmon Fishery. They have been pending for years.
Senator Wicker and I are planning to reintroduce our bipartisan
bill, which is about reform of the fisheries disaster process,
including deadlines to ensure that fishery disasters are
elevated and declared in a reasonable timeframe.
Let me be blunt, our fishermen are tired of waiting.
Dealing with NOAA on these fisheries has taken literally years
to receive, you know, the disaster determination, let alone the
funding. So we need a solution, and we need reform. How will
you help turn the tide on what seems like an endless cycle of
fishery disaster timing?
Mr. Graves. Thank you, Madam Chair. You and I have talked
about this in the past, and I appreciate how critical it is for
the fisheries around the country and especially for the fishing
industry. Sustainably managed fisheries are critical to our
economy, to our culture, to the fishing industry.
I will absolutely work with the career staff at NOAA to
make certain that we get these disaster dollars out the door
and supporting those communities that have been most critically
impacted by the pandemic and by the challenge to our fisheries.
The Chair. Well, I look forward to working with you and the
Secretary in your roles also on salmon recovery and to boost
the impacts of salmon caused by, you know, challenges of
infrastructure investment and the fact that we need
infrastructure for them as well. So but let me turn to a couple
of other things. You know, I mentioned our export economy and
how important it is to the State of Washington. Obviously, the
Department plays a critical key role.
You have people all over the world really as U.S.
Commercial Service Officers and you are on the front line. But
I think today's anniversary reminds me how much we need
Commerce to play a role in the advocacy for safety, and
standards, and open markets. Aviation, as we get out of this
pandemic, is going to be a very competitive marketplace and the
United States has to help us in the implementation of this
legislation, advocate for the safety standards around the
globe, and for open markets to make sure that people understand
that we want competition.
It has to be an open and fair competition. And so you can
comment on that but let me just throw one I think, because it
is going to take both of these as a question. Yesterday, I
think the airlines presented to the White House an idea of some
sort of vaccination card. Now, as somebody who's traveled
abroad at times and been asked for my yellow fever vaccination
card, it has played a key role to tourism and certain nations
around the globe.
So should we be considering, we have more than 92 million
vaccinations, which has been about 18 percent of the U.S., and
I know that we are going to continue to be as rampant as we can
in getting the vaccines into people's arms.
So, but obviously getting tourism open to other countries
at some moment is going to be a pretty key issue. So what do
you think of this? What do you think the Department of Commerce
should be doing to look at this issue and to further evaluate
it?
Mr. Graves. Thank you, Madam Chair. I agree that tourism is
absolutely critical for our economic growth and our recovery. I
believe strongly that we should do all that we can to help
ensure that these industries know that the airline workers, the
pilots, the flight attendants and all the rest of the airline
workers rely on us making sure that these standards are applied
across the globe.
And I would certainly, if confirmed, work with the White
House, the CDC, the Department of Health and Human Services, to
ensure that we can get the tourism back on track, get our
travel going, and make certain that they have every precaution
that they need, but make certain that travel is open and that
the United States is open for business.
The Chair. Well, I hope that you will look at this. And I
hope that our subcommittee, Senator Rosen and Senator Scott,
will look at both the legislation that Senator Scott and I
introduced on helping our airport infrastructure have
temperature check architecture. That is pretty standard around
the globe. And also have a hearing on this issue of some sort
of information that helps us stabilize, at the right point,
access to travel markets around the globe. Thank you. Ranking
Member Wicker.
Senator Wicker. Thank you very much, Madam Chair. The Chair
mentioned the decision should be science-based, and that
includes, I think, data concerning fishing data that is
important not only to the commercial fishing industry, but also
to the sport fishing industry. I introduced, and we passed in
the last Congress, the bipartisan Modern Fish Act, which is
still in the process of being implemented. The theory--the
truth behind this legislation is that commercial fishing and
sport fishing can, in fact, do a better job of coexisting.
In the Gulf of Mexico, states like Mississippi have
invested significant time and money to develop a more accurate
understanding of how much recreational fishermen harvest.
Despite this effort, NOAA is rejecting the high quality State
data. And instead, the agency is prioritizing the less accurate
Federal data from the Marine Recreational Information Program.
Now, we have a program in Mississippi called ``Tails and
Scales,'' and it is known to be the strongest survey of red
snapper fish in the country.
The fact that it is done by a State Government rather than
by the Federal Government does not diminish the fact that it is
highly accurate and better than the data we have been going by.
I am concerned that the Federal Government's response to this
could unfairly decrease Mississippi share of the red snapper
fishery by some 60 percent this year. This is particularly
frustrating in light of the recent great snapper count, which
suggests that the actual abundance of red snapper in the Gulf
is three times higher than that which NOAA has estimated.
So, will you work with me to ensure Mississippi's not
unfairly punished for collecting high quality fishery data, and
will you commit to ensuring NOAA uses the data from the great
red snapper account to update catch limits as soon as possible?
Mr. Graves. Thank you, Senator, very much. And I appreciate
the conversation that we had a few weeks ago about this very
issue. You raised the importance of this issue to both the
commercial and recreational industries in your state. I
believe, as I have said, that sustainable, managed fisheries is
really important. And to your point, data is critical in doing
that. And certainly there's the balance of the conservation and
the jobs in the fishing industry.
But these fishermen provide food to the American families
and we need to make sure that we do have the best data, so
absolutely, I would be very interested in working with you on
this and making certain that the talented staff at NOAA have
the very best data as they are making these decisions.
Senator Wicker. Sport fishing and commercial fishing are
huge job creators in this country. And I--it has been great to
have had the Chairmanship for the last two years, but have been
on this committee for some time now, to have a chance to go to
these boat shows. One of the largest boat shows in the world is
in Miami. It is so big, it takes 3 days. It is far larger than
the economic impact of having a Super Bowl. This is huge money
for small businesses, for manufacturers, for everyone in the
sport fishing industry, and it doesn't take a thing away from
the commercial fishing industry, which is also very, very
important.
Again, I would say get the facts right, get the data right.
Look at the methodology that we have come up with the great
snapper count and Tails and Scales in Mississippi. And I
challenge anyone to tell me that the old method of collecting
data done by the Federal Government is better. In regard to our
commercial fishing friends, let me say that I am pleased that
we have had some success in getting assistance to the
restaurant business. As Senator Sinema and I introduced the
Restaurants Act, and we got--we got an amendment, the first
amendment added to the budget, the reconciliation portion of
the budget in our first voterama.
And it may very well be signed by--the legislation part may
very well be signed by the President today or tomorrow. So we
finally have some restaurant relief. Most of the fish caught by
commercial fishermen in the United States is eaten at
restaurants. And they have been severely, severely impacted by
this COVID pandemic. What do you expect to be the lasting
impacts of the pandemic on the U.S. seafood industry, including
our fine commercial fishermen? What will it take for the
industry to recover?
Mr. Graves. Well, thank you very much, Senator, for that
question. As you know, small businesses have been at the heart
of my career, the core of everything I have done. And I know
exactly the type of impact that the pandemic has been having on
our restaurants and our fishing industry. I think that we can
certainly use the Economic Development Administration to make
it easier to grow back these industries.
I know that many of these restaurants have closed, but
people still have the desire to be in that industry, they have
the expertise, and people want to go out and get to a
restaurant again as we get the pandemic under control. So it is
my hope that we can get the economy back going where it needs
to be, use the resources in the Relief Act, as well as the
existing resources through the Economic Development
Administration at NOAA--I mean, excuse me, at Commerce and the
support of NOAA to make sure that the fishing industry has
everything that it needs to be able to get fish to the tables
or to the kitchens and the restaurants, and the restaurants,
what they need to serve the customers throughout this country.
Senator Wicker. Thank you very much. Madam Chair, point of
personal privilege. Our distinguished nominee mentioned his
family history here in Washington, D.C., including the spot of
land that they previously owned and where they started their
business. I would ask unanimous consent to insert into the
record in light of Mr. Graves testimony, a column written by
Courtland Milloy, dated February 23, 2021 expanding on this
very interesting and inspiring story.
The Chair. Without objection.
[The information referred to follows:]
A Commerce nominee's formerly enslaved ancestors ran a taxi service
where the department is now headquartered
By Courtland Milloy, Columnist
Feb. 23, 2021 at 7:01 p.m. EST
In 1821, Lynch and Polly Wormley started a horse-and-buggy taxi
service in the District. They'd come from Albemarle, Va., after being
freed from enslavement by their plantation owners. Their business
included a stable, with living quarters attached, located on muddy
flatlands now occupied by the Commerce Department.
The business thrived in the growing nation's capital. Being close
to the White House, the clientele included the Nation's political
elite, military leaders and foreign dignitaries. The Wormley children,
who also worked in the livery, would develop friendships that helped to
foster even more business success.
Today, the Wormley horse-and-buggy business is long gone. But the
family saga continues with a sweet symmetry: President Biden has
nominated Don Graves Jr., who is Lynch and Polly Wormley's four-time
great-grandson, to be deputy secretary of commerce.
If confirmed, Graves, 50, will report to work at the same location
where the family seeds of commerce were first planted 200 years ago.
``It's obviously very exciting,'' Graves told me.
Before traveling to Wilmington, Del., where Biden made the
announcement, Graves drove through downtown Washington to savor some of
that family history. At 15th and H streets NW, there had been a hotel,
the Wormley, built in 1871 by his three-times great-grandfather James
Wormley. The hotelier also had built a horse racetrack in D.C.'s
Tenleytown.
There was the Treasury Department, where Wormleys had been hired to
help clean after construction was completed in 1869. And, of course,
there was the Commerce Department at 1401 Constitution Avenue NW. The
place where a formerly enslaved Black couple had laid the groundwork
for the success he enjoys today could be the site of a homecoming of
sorts.
``I was reminded that everybody has hopes and dreams,'' Graves
said.
The appointment would make him No. 2 in charge of a department with
more than 46,600 employees, an estimated $9.6 billion annual budget,
and a mission to help rebuild the Nation's pandemic-stricken economy.
Make it more inclusive. Or, as Biden puts it, ``Build back better.''
Biden has already proposed doubling the $333 million budget for the
Commerce Department's Economic Development Administration, which would
help establish new manufacturing and information technology in
disadvantaged communities. ``Hopefully, I will be in a position to make
sure people from all communities are dealt into the bargain,'' Graves
said.
Graves is a Georgetown Law graduate and served as executive
director of the President's Council on Jobs and Competitiveness during
the Obama administration. He led the Federal effort to revitalize
Detroit when the city went bankrupt in 2013. He's been an economic
adviser to Biden since 2014, and also led the then-vice president's
cancer research initiative.
In those jobs, he gained experience and wisdom. For insight and
inspiration, Graves says, he draws on the lessons of his family
history.
Lynch and Polly Wormley received support from some unlikely
sources. In those days, just to get a hack license in the District, a
Black man needed a White man to declare he was not a runaway enslaved
person. Lynch Wormley had been vouched for by Francis Scott Key. The
two had met at a plantation in Virginia.
Key had penned ``The Star Spangled Banner'' in 1814, which happened
to be the same year Lynch and Polly came to D.C.
Their eldest son, James Wormley, would become close friends with
abolitionists Charles Sumner and Frederick Douglass. Together, they
would fight for better schools in the District, the right to vote, fair
labor practices and an end to ``Black Codes'' that sought to enforce
Black subservience to Whites.
For relief from the stresses of their civil rights efforts, Wormley
and Douglass helped establish a summer resort for the Black elite at
Highland Beach on the Chesapeake Bay. Graves would spend many a summer
vacation there.
After the Civil War, James Wormley capitalized on civil rights laws
enacted during Reconstruction to open his hotel. For a brief period,
Black Americans could vote, seek public office, acquire the land of
former enslavers, seek their own employment and use public
accommodations.
Then, in 1876, Democratic and Republican representatives began
meeting at the Wormley hotel to negotiate an end to the disputed
Tilden-Hayes presidential election. The deal they struck, known as the
``Wormley Compromise,'' called for an end to Reconstruction.
After James Wormley's death, his eldest son took over management of
the hotel. But a climate of economic uncertainty and resurgence of
racial hostilities in the post-Reconstruction era made it impossible
for Wormley to get financing for much-needed renovations.
The property was eventually sold, and the deteriorating building
later razed.
``That deal to end Reconstruction, struck at the Wormley Hotel, set
back racial progress for decades and decades and left a stain on our
collective history,'' Graves said. ``Access to the credit and capital
needed to start and grow a business hasn't been an option for many
people, especially African Americans. That would change in an economy
that was more inclusive.''
In 1919, when racial animus in D.C. erupted in race riots, some of
the Wormleys moved to Cleveland. Graves was born there. The family
continued to emphasize the importance of education and
entrepreneurship. And their successes have continued, as well. Thinking
back on his family's roots, Graves said it takes ambition to live a
life of dignity.
``But even that is not enough.'' he said. ``You also need help--
from your family, your community. You need government help, with more
opportunities, with getting capital and investments, and other
assistance to make the playing field a little more level, like we do
with international trade.''
On the drive to Wilmington where Biden would announce his
nomination, Graves had seen the sign to Fort McHenry as he passed
through Baltimore--and he thought of Key, who had been inspired to
write the national anthem after witnessing the defense of the fort
during the War of 1812.
He recalled how Key had vouched for Lynch Wormley, helping at a
critical time to get a license to work. And that happened even though
Key had also been an enslaver and spoke of Black people as a ``distinct
and inferior race.'' It is a paradox that has always haunted Black
progress, in a land of the free, home of the enslaved.
Graves has a recording of ``The Star Spangled Banner'' that he
plays at the start of his daughter's soccer games. Now he was listening
to it again, en route to be nominated by the president to help create a
more equitable society.
``I was getting a little choked up, thinking, in this country, you
can achieve anything you want--with a little help,'' he said.
The Chair. Thank you for including that in the record. And
I think I would say ditto to Senator Wicker's comments on about
fish and boating. Seattle has more boats per capita than
anybody else in the Nation. And clearly we plan entire weeks or
months around copper river salmon. So we definitely, definitely
agree with the Senator about this as a very big part of our
economy and the challenges that we face. So we need to honor
our fishermen.
When we have had testimony before this committee, I know we
had an actress in front of us. I can't remember what we were
talking about--ocean's economy. But the fishermen who showed up
articulated the needs of this issue more than anybody, and so I
hope we will listen to them. And they are telling us they need
some more help. So anyway, we will turn to Senator Klobuchar. I
am sure she can tell us about walleye in Minnesota. But, you
will find that fish are very important issues for all of us.
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Chairwoman Cantwell and Senator Wicker,
you stole my opening line. I was going to tell Mr. Graves that
there is nothing better for Minnesotans than following a
discussion on fishing. But I did want to tell you, Mr. Graves,
how excited I am about your nomination. You have spent time in
my state. You understand our community development
organizations, and your mix of public and private experiences
is going to be so great as well as your enthusiasm for this
job. So I just thought I would start with tourism, kind of part
of fishing, part of the restaurants that Senator Wicker was
talking about. Senator Blunt and I have long lead the bill for
Brand USA.
We got it reauthorized back in, I think, 2019 up to 2027.
As you know, that allows our country to advertise itself, not
with taxpayer money, but with a mix of fees that foreign
visitors pay as well as private sector money. And it has been a
really, a positive, positive for bringing in more guests to our
country that spend an average of $5,000 when they come here.
And with the pandemic coming to a close, with light at the
end of the tunnel, I can finally ask about tourism. So, Mr.
Graves, could you comment about that?
Mr. Graves. Well, thank you very much, Senator. And I
really appreciated the opportunity to talk with you over the
last few weeks. You have raised this issue before. I believe it
is absolutely critical, as I said earlier to the Chair, that we
get our tourism, travel and tourism industry back up and
running the way that it should be, attracting folks from around
the globe back into the United States. That we do everything
that we need to do to get our arms around the pandemic.
But we also need to make sure that we are promoting tourism
to the U.S. Every state in the country has a wonderful tourist
attraction, including my own state of Ohio. And I think that I
would certainly want to work with you and other members of the
Committee to make certain that the Department is doing
everything that it can to promote tourism to the United States
and get folks traveling again.
Senator Klobuchar. Very good and I would love to get more
detail on that later when you get into the job. U.S. Commercial
Service, we talked briefly about that. 95 percent of our
world's customers are outside of a border. Again, when we see
the light at the end of the tunnel, I think we are going to see
an increase in exports.
I know it is a priority by the Biden Administration. Could
you talk about what your plans are to expand, improve the U.S.
Commercial Service Program to help our smaller businesses? And
the Chairwoman has done such great work on the export bank and
exports, to help our small businesses export abroad.
Mr. Graves. Thank you for that question, Senator. I have
spent a lot of time speaking with small businesses and medium-
sized businesses around the country who were talking about the
very issue that you raise, the need to make certain that they
can navigate the waters of exports, that they can get to--get
their products and services out around the globe.
And you have my commitment to working closely with you and
the staff in the Commercial Service and across the Department
to make sure that everything we do is focused on our clients,
our customers, which is the U.S. taxpayers, U.S. businesses,
that they are able to navigate our programs to use our
resources so they can get their products to market. It is
something that I have spent a lot of time in my career on is
helping small businesses and helping make sure that they are
able to navigate agencies and resources like the Department of
Commerce. So you have my commitment to work with you on that.
Senator Klobuchar. Good. 80 percent of venture capital is
going to three metropolitan areas in the country. We would like
to see some of that money going to other hubs and areas where
we can allow new ideas to be unleashed. And I think we are
better off if that money is spread across the country.
So I have a bill, the New Business Preservation Act with a
number of other Senators that would allow the country to start
pushing some of that funding in a good way. Could you talk
about your plans to help to make sure that ideas and venture
capital is spread across the country as well as help to
minority and women owned businesses?
Mr. Graves. Thank you, Senator. I have spent a significant
part of my career focused on making sure that businesses in
this country, particularly small businesses, have the needed
access to credit and capital. And I look forward to working
with you on your legislation. I think that the Department of
Commerce is in a great place to be able to advance the cause of
capital all across the country, making certain that our small
businesses have what they need to grow and create jobs, so I
look forward to working with you on the legislation.
Senator Klobuchar. Thank you. And Madam Chair, I will be
asking the questions on the record about steel dumping, really
important to Northern Minnesota. The work that has been done
over the last few years to allow our iron ore mines to reopen,
as well as the work Commerce does with regard to broadband
since Representative Clyburn and I are introducing,
reintroducing our bill today for some significant investment in
broadband. Thank you.
The Chair. Thank you for your leadership on those things.
Senator Thune.
STATEMENT OF HON. JOHN THUNE,
U.S. SENATOR FROM SOUTH DAKOTA
Senator Thune. Thank you, Madam Chair. Mr. Graves, welcome
to the Committee. As you know, responsible and effective
spectrum management between NTIA and the FCC has enormous
consequences for the United States'' ability to compete with
China and other countries in the race to 5G. Do you support
freeing up spectrum currently held by the Federal Government?
Mr. Graves. Senator, thank you for that question. I believe
that the Department of Commerce should be working very closely
with the FCC to make certain, and with our--all of our Federal
agencies, to identify ways to free up spectrum for use by the
private sector so long as it does not negatively impact our
National Security needs or the needs of our First Responders.
Senator Thune. And on that point, with the development of
new technologies like 5G, the spectrum demands are going to
increase. And that is going to result, as I said, in Government
agencies and others competing for those resources. So if
confirmed, how would you--or maybe ask it more this way, what
steps should the Department take to prevent interagency
disputes relating to spectrum management issues?
Mr. Graves. Thank you, Senator. Part of this is having
conversations and making certain that each agency is brought to
the table and is transparent about the way that they are using
their data. And at the end of the day, we can certainly enlist
the help of the White House in this. But the Department will be
working very closely, as I have said, with the FCC and other
agencies.
And we need--as you point out, 5G is critical to our long
term economic prospects. We have to maintain our technological
advantage there, particularly given everything that China is
doing. So you have my commitment to working very closely with
all of the agencies and really pushing them to make sure that
we are finding every amount of spectrum that we can free up for
use to maintain our edge on 5G.
Senator Thune. I hope you really will focus on that. We can
be way more efficient and there is a lot of spectrum out there
that are currently in the hands of Government agencies that I
think could be effectively deployed for commercial use in a way
that doesn't harm, as you point out, National Security.
Congress provided NTIA with $1 billion to support broadband
access in tribal areas. Will you commit to ensuring that NTIA
coordinates with the FCC and USDA to see that those funds are
targeted to truly underserved areas?
Mr. Graves. Senator, absolutely. I have spent a significant
part of my career working with tribal Governments and tribal
communities and know and have seen, certainly given the
pandemic, the impact that lack of access to broadband is having
on communities all across the country, but especially our
tribal communities. So you have my commitment on that one. That
is a top priority for me.
Senator Thune. As you know, FirstNet, which acts as an
independent authority under NTIA, is to build out, operate,
maintain a public safety network. They have made significant
progress in deploying that network and I particularly
appreciate the coverage expansion of rural areas like my home
state of South Dakota. If confirmed, will you commit to ensure
that FirstNet's deployment milestones will continue to be met?
And second, do you believe that this can be done without
additional funding from Congress?
Mr. Graves. Senator, you have my commitment on the former,
making certain that we are doing everything we can to meet
those goals and objectives. And it is my understanding that
FirstNet is able to do everything based on fees and does not at
this time need additional funding to do--to take care of all of
those, all of the work that it is doing.
Senator Thune. In your testimony, you say that you will
focus on recovering from the economic crisis caused by the
COVID-19 pandemic, protecting our critical infrastructure, our
National Security. What role does cybersecurity play in
ensuring success in these areas and how can the United States
strengthen its approach moving forward?
Mr. Graves. Well, protecting our networks, our systems, and
our data is one of the most important roles of the Federal
Government. It is vital to maintaining the confidence in our
Government. And I am committed to working with all of our
agencies, particularly our National Security agencies, working
with our research institutions, and the private sector
stakeholders to make sure that we are doing all that we can to
protect our cybersecurity. And that includes also making
certain that our private sector businesses have what they need
to protect their assets. Because we have seen with China and
others who are infiltrating our systems, Russia, and stealing
our intellectual property and our data, and frankly, we can't
stand for that.
Senator Thune. Madam Chairman, my time has expired. Thank
you, Mr. Graves.
The Chair. Thank you, Senator Thune. Senator Blumenthal.
STATEMENT OF HON. RICHARD BLUMENTHAL,
U.S. SENATOR FROM CONNECTICUT
Senator Blumenthal. Thank you, Madam Chair. Good morning,
Mr. Graves. Welcome to the Committee and thank you for your
public service. I am interested in the supply chain. I know it
is also a concern of yours and President Biden's. I welcome his
Executive Order on America supply chains issued recently which
concerns shortages of micro boards and semiconductors and
essential components that go into the supply chain. The Order
calls for a sweeping review of our dependency on foreign
producers. But the need is really urgent, for example, for
semiconductors because our automobile manufacturers are
threatened. Recently, a bipartisan group of us wrote to the
White House about the shortage of semiconductors, particularly
affecting the automobile industry.
But I saw it at a smaller scale at a company called Micro
Board, which produces medical equipment and defense items in
Seymour, Connecticut. And the shortage of semiconductors is
threatening their ability to meet consumer demand for these
essential products. What can we do about that shortage and more
generally about the supply chain?
Mr. Graves. Thank you very much, Senator, for that
question. Thank you for the conversation that we had a few
weeks ago. And you have raised this very important issue.
Supply chain resiliency is critical to our ability as a nation
to compete. And frankly, if we have strong supply chain
resiliency, we will outcompete the rest of the world, even when
it comes to situations like the pandemic. The semiconductor
industry I know has had challenges meeting demand as we come
out of the pandemic, especially the auto industry getting
access to the semiconductors.
As President Biden has done with his EO, and as you likely
have seen, we need to review our entire supply chain. We also
need to use all of the tools at the disposal of the Department
of Commerce to make certain that we are getting access to
things like semiconductors for our vital industries and that we
are investing appropriately to grow our industries here and
make certain that we are also keeping a fair and level playing
field across the globe.
Senator Blumenthal. The supply chain involves one industry
that I think is very important to our future, commercial
drones. Senator Scott and I have focused on the issue of
commercial drones in Connecticut. We have a few drone companies
like Aquiline and Ratico that offer alternatives to the
insecure drones that are coming from China.
A major part of our drone market comes from China. Those
drones raise very serious security concerns. There is a lot
that the Department of Justice can do to help drone companies
grow and innovate. I am interested in what you would do,
assuming you are confirmed.
Mr. Graves. Thank you, Senator. And if confirmed, I would
certainly want to make use of the Department's resources to
invest in research and development in the space to make sure
that we have that, working with the Labor Department and the
Education Department, make sure that we have the workforce to
meet the needs of the industry.
And as I said, to make sure that we have the resiliency of
the supply chain to ensure that that industry is successful.
But I would look forward to working closely with you and
learning more about the industry and the businesses to see in
what additional ways we might be able to help.
Senator Blumenthal. Do you have any insights as to why the
United States has surrendered so large part of the market to
Chinese production?
Mr. Graves. Well, Senator, I am not an expert on that. I
would just say that I would work with the career staff to
understand what they see as the challenge and would want to
speak with stakeholders in the industry to learn a bit more.
But I think that generally we have to take a very firm stance
with China. It is clear that they don't share our values, that
they threaten our economy and our technology lead. And we have
to take a firmer stance as we can, using our defensive and
offensive tools to protect the industry.
Senator Blumenthal. My time has expired, but I would like a
commitment from you that once you are confirmed, as I believe
you will be, you can give us a report, preferably in writing,
using your professional staff as to what our strategy should be
on drones to build a better supply chain, but also increase
output so that we are relying on American drones, not Chinese
drones.
Mr. Graves. Well, Senator, you have my commitment to do
that.
The Chair. Thank you. Senator Cruz.
STATEMENT OF HON. TED CRUZ,
U.S. SENATOR FROM TEXAS
Senator Cruz. Thank you, Madam Chair. Mr. Graves, welcome.
Congratulations on your nomination. On Election Day 2020, U.S.
regular retail gas was selling at an average cost of $2.31 per
gallon. On January 27, President Biden issued an Executive
Order that ordered the Department of the Interior to pause new
oil and gas leases on public land or offshore waters. Today,
gas is selling at $2.91 a gallon.
That is nearly a 28 percent increase in gas prices over
just a few short months, which will cost American families
nearly $400 more per year in added fuel costs. That is, in
effect, a tax on the American people brought on by the
President's leasing moratorium and his shutting down the
Keystone Pipeline.
In today's economy with millions of Americans out of work
and millions more scared of losing their jobs and with their
families struggling, if you had been consulted about this
action prior to it being taken, would you have recommended the
moratorium?
Mr. Graves. Well, thank you very much, Senator. I very much
appreciate the question. I would certainly have wanted to talk
with the data experts at the Department. As you know, science
shows that our climate is changing significantly. And it is my
understanding that the President took those steps as a first
step toward ensuring long term reduction in greenhouse gases
and getting our arms around climate change. But I absolutely
would have wanted to work closely with the Department of Energy
and Department of the Interior and understand what they are
seeing relative to gas costs.
Clearly, we as Government need to make sure that we
understand the long term downstream impacts of those decisions
on our businesses. So I would leave it to the Department of the
Interior and Energy, who are the experts on these issues. But I
would also want to make sure that I am bringing to the table
the input from all stakeholders.
Senator Cruz. I would note your answer today is not
entirely consistent with your previous record. In January 2012,
while you were Executive Director of the Obama Jobs Council,
the Council released a road map to renewal, which had more than
60 recommendations to improve the economy. The first
recommendation in the energy chapter reads as follows, ``First,
we should allow more access to oil, natural gas, and coal
opportunities on Federal lands.
Where sources of shale natural gas have been uncovered,
Federal, State and local authorities should encourage its safe
and responsible extraction.'' The report goes on to say,
``further expanding and expediting the domestic production of
fossil fuels, both offshore and onshore, will reduce America's
reliance on foreign oil. And additionally, policies that
facilitate the safe, thoughtful, and timely development of
pipeline transmission and distribution projects are necessary
to facilitate the delivery of America's fuel and electricity
and maintain the reliability of our Nation's energy system.''
Do you still agree with what your task force wrote then?
Mr. Graves. Well, thank you, Senator. I will just note that
the members of the Jobs Council were independent external
advisors who prepared the report. So that was their statement.
That said, I do believe that the science and data have advanced
significantly and are showing that the impact of climate change
is having a massive impact and it is affecting people's lives
and livelihoods. And that if we shift, as the President has
called out, to a green energy and clean energy set of economies
and investments, we actually will create millions of new jobs
and we will also continue to bring down energy costs.
Senator Cruz. Mr. Graves, are you telling this committee
that you were the Executive Director of the Jobs Council and
you didn't agree with the recommendations from the Jobs
Council?
Mr. Graves. Senator, I am just telling you that they--I was
merely a coordinator----
Senator Cruz. Did you agree with the recommendation or not?
Mr. Graves. Senator, the members made their own statement.
They came together as a group to make that report.
Senator Cruz. Did you have a role in drafting that?
Mr. Graves. I merely provided advice and support to the
members and they made their own judgment.
Senator Cruz. So my question is simple, did you agree with
that recommendation in 2012? You might say that we are a few
years later. You might say you have decided you were wrong. My
question is, when the recommendation was issued--and this was
not the Trump's Jobs Council, this was the Barack Obama's Jobs
Council. You were the Executive Director. Did agree with the
Jobs Council's recommendation?
Mr. Graves. Senator, I believe that we should look to a
wide range of sources of energy and including increasing the
amount of renewable energy sources at that time. Again, the
Jobs Council's recommendations were their own. And I was----
Senator Cruz. So you are not going to answer if you agreed?
Mr. Graves. I agreed in part and disagreed in part.
Senator Cruz. So what did you disagree with?
The Chair. Senator Tester.
STATEMENT OF HON. JON TESTER,
U.S. SENATOR FROM MONTANA
Senator Tester. Thank you, Madam Chair. I don't know
whether to respond to Senator Cruz's line of questioning or
not, but it is interesting that he intended to leave out an
incident that happened in Texas in the storm that shut down the
industry, which had impacts on the crisis, by the way, and
wasn't due to wind or solar. It was due to no regulation of the
electrical grid in Texas and the fact that demand is up for a
while. But we will let that go. I want to stick with Mr. Graves
here. Appreciate you being here at this committee hearing.
I want to talk to you a little bit about broadband, because
if this pandemic has taught us anything is how important
broadband is both from a health care standpoint, an education
standpoint, and an economic opportunity standpoint. I come from
rural America, where, quite frankly, the broadband coverage is
not where it needs to be.
And I live fairly close to an Indian reservation where the
broadband coverage isn't what it needs to be. If you are
confirmed to this position, can you tell me how you are going
to prioritize rural America and Indian country too?
Mr. Graves. Well, Senator, thank you very much. And I
appreciate the chance to speak with you a few weeks ago and
where you raise these very issues. We have seen clearly, as a
result of COVID-19, the need for access to affordable, high-
speed broadband is critical to every community in the country,
especially to our rural areas and tribal communities, which
have limited access. It is important for business. It is
important for access to medical care. It is critically
important for access to services.
So my belief is that we should do everything in our power
to make certain that broadband is expanded into every community
in the country and that we get the NTIA grants expedited. That
we are increasing the amount of broadband access in rural, and
I would look forward to working with you closely on this issue
going forward.
Senator Tester. Well, I look forward to that opportunity. I
will tell you that if we don't prioritize the areas that are
underserved or not served at all, I don't think we are going to
have the economy that is going to work for all parts of this
country. And so I hope that is a priority for you. I want to
talk about EDA because I think the Economic Development
Administration is a great resource.
We addressed it in the CARES Act that we passed nearly a
year ago and we addressed it in the American Rescue Plan that
we passed last week. And the fact is, is that the ability for
EDA to deal with the unprecedented challenges of this pandemic
is critical and it is how we retain businesses across this
country. Tell me, because I think the American Rescue Plan
allocated 25 percent of the $3 billion going to communities
suffering from job loss from travel, tourism or the outdoor
recreation sector. Can you tell me how you are going to
implement that?
Mr. Graves. Well, thank you, Senator, for that question. I
think it is vital for us to get these dollars out the door and
make sure that the hardest hit communities by the pandemic are
getting the resources as quickly as possible. I will tell you
that I know from my own experience and some of the programs
that I have run, that it is absolutely the most important to
have close coordination between the Federal Government agencies
that implement, in this case EDA, and our partners across the
Federal, state, and local Governments, and working with local
stakeholders.
So having ongoing conversations and using the expertise
that the career staff have, not just at EDA who are fantastic,
but also staff across the Federal Government to make certain
that the dollars are going quickly, are being used effectively
and efficiently, and that most importantly, we are getting our
local economies going again.
Senator Tester. Thank you for that. Last question very
quickly. Agriculture got pounded because of the trade wars of
the previous Administration. And I mean pounded. The prices
still are not where they need to be and is the reason why 40
percent of farm income came from the Federal Government last
year. Can you tell me how you are going to work with USTR to
expand new markets, not only for agriculture, but for
everybody?
Mr. Graves. Thank you, Senator. I completely agree with you
that we need to do more for agriculture and making certain that
we are dealing with the trade challenges that we are facing
across the globe. I would commit to working closely with USTR
and with our partners at the Department of State and utilizing
all of the tools at the Department's disposal to bring down
barriers across the globe to our produce and our products and
ensuring that we are making the right types of investments for
our farms, for agriculture, making necessary infrastructure
investments so we can make certain that their products are
getting to market in a timely fashion.
Senator Tester. Thank you, Mr. Graves. Thank you, Madam
Chair.
The Chair. Thank you, Senator Tester. We now have Senator
Blackburn.
STATEMENT OF HON. MARSHA BLACKBURN,
U.S. SENATOR FROM TENNESSEE
Senator Blackburn. Thank you, Madam Chairman, and Mr.
Graves, thank you for being with us today and congratulations
to you on your nomination. Couple of topics quick, yes or no.
Do you support the nationalization of 5G telecommunications
network?
Mr. Graves. Senator, thank you. I do not.
Senator Blackburn. Thank you. Do you believe Huawei
Technologies should remain on the Commerce Department's entity
list?
Mr. Graves. Thank you, Senator, for that. Based on all
information, public information that I provided, I have no
reason to believe that Huawei should be removed from the
entities list at this time.
Senator Blackburn. OK. And you had--Senator Blumenthal
mentioned supply chain to you, and there are a group of us that
were at the White House a few weeks back on meeting with the
President and Vice-President on supply chain issues and looking
at repatriation. So very quickly, how would you put emphasis on
repatriating and bringing back pharmaceuticals,
microprocessors, semiconductor chips?
Mr. Graves. Thank you, Senator. As you know, the President
has done an Executive Order recently focusing on supply chain
resiliency, conducting a review across all of the agencies over
the next 100 days on that. I would certainly want to have the
Department of Commerce working closely to be a part of that
supply chain review, making sure that we see where there are
gaps, where there are challenges, and again, using all of the
tools at the Department's disposal, including our defensive
tools, protecting against trade barriers, but investing in
critical infrastructures like the semiconductor industry.
Senator Blackburn. Sounds good. OK, Privacy Shield. How do
you plan to proceed with the Privacy Shield negotiations with
the Europeans?
Mr. Graves. Thank you, Senator. The--I was dismayed by the
European Court of Justice's ruling about data. Data and privacy
and free flow of data and privacy are critical to our
businesses. And I believe that we should do everything in our
power to speed up the negotiations with the European Union and
member countries so that we can ensure that continued free flow
of data to deal with the Privacy Shield issue.
Senator Blackburn. And likewise, AI is going to be
important to us over the next couple of decades. And NIST has
some credible and important work going on in this realm. How do
you plan to prioritize the work at NIST?
Mr. Graves. Thank you for that question. The work that the
career staff at NIST does can't be understated. We must
maintain our lead in technology as a country. And leading our
global standard setting is something that we should be
continuing to pursue and push. And I think that the staff that
at NIST, I would like to work with them closely to make sure
that they are prioritizing AI and our technological advantage--
--
Senator Blackburn. Yes, let me ask you one more thing in
conjunction with that. It is important--and you mentioned
standard settings which is vital because China is pushing to
grab that position right now. So how would you engage our
allies in sharing this work with them?
Mr. Graves. Thank you, Senator. We need to rebuild our
relationships with all of our allies, bringing them along with
us. I think that NIST and other parts of the Department should
be working closely with our allies on these issues and on the
standard setting. If we can spend the time working closely with
the experts in industry and experts in research institutions,
supporting the career staff at NIST, I believe that we will
come up with standards that our European allies--excuse me, our
allies across the globe will want to join in on, and that will
continue to allow us to lead the way.
Senator Blackburn. And I appreciate that you make it across
the globe. Of course, Japan has been a wonderful partner to us,
and also has pushed the clean network plan. Thank you, Madam
Chairman. Yield back.
The Chair. Thank you. Senator Rosen.
STATEMENT OF HON. JACKY ROSEN,
U.S. SENATOR FROM NEVADA
Senator Rosen. Thank you, Chair Cantwell, Ranking Member
Wicker, and for holding this hearing, and of course, to Mr.
Graves, for your willingness to serve in this very important
role. And we have a lot of important roles. But in my state,
travel, tourism and hospitality are major economic drivers and
job creators--like I said in my state of Nevada. In 2019, our
states saw nearly 50 million visitors and tourism spending in
the Las Vegas area supported nearly a quarter of all jobs. Our
outdoor tourism industry from Northern Nevada, Lake Tahoe all
the way down Southern Nevada, Lake Mead, Red Rock, Canyon, they
bring billions of dollars and jobs and visitors to Nevada year-
round. But the pandemic has hit Nevada's tourism economy
particularly hard.
Recovery for travel and tourism has been extremely slow. It
is slower than the rest of the economy. So I am grateful to be
Chair of the new Subcommittee on Tourism, Trade, and Export
Promotion. And I am looking forward to working with you to
rebuild all of these critical sectors going forward. So, Mr.
Graves, the Department's National Travel and Tourism Office,
you are tasked with enhancing the competitiveness of the U.S.
travel and tourism industry.
So if you are confirmed, I hope you will commit to ensuring
that you prioritize travel and tourism and that you would also
commit to working with me to develop a national strategy
focused on improving domestic tourism during and post pandemic?
Mr. Graves. Well, Senator, thank you for that. As someone
who spent a lot of time in your state, touring different parts
of your state, I fully understand the need for focusing on
travel and tourism. I would commit to doing both certainly. I
commit to working with you and other members of the Committee
to ensure that our tourism, travel and tourism industry has the
necessary resources and that we can get it back to the place
that it needs to be. So, yes, absolutely.
Senator Rosen. Thank you. I appreciate that. And of course,
nothing else happens much without broadband these days. We have
seen, particularly in the pandemic, that broadband is the basis
for everything. So I represent as well one of the fastest
growing states in the United States. Like I said, home to Las
Vegas and Reno. Vast rural areas where more than 80 percent of
our land in Nevada is federally owned, and unfortunately, 65
percent, 65 percent of Nevada's rural population lacks access
to high speed Internet.
Last December's COVID relief package included a number of
broadband provisions, included $1 billion to the National
Telecommunications and Information Administration for tribal
and rural broadband. So how are you going to ensure the agency
under your jurisdiction has the resources needed to manage
these new great programs, including your grant making
authority, make sure you are coordinating with other agencies
important to us in the West, like BLM, the Bureau of Indian
Affairs, and USDA? Like I said, 80 percent of our land,
federally owned or managed.
Mr. Graves. Thank you, Senator. I couldn't agree more about
the need for broadband access all across the country,
particularly in those areas that are unserved or underserved,
such as in your state. I would certainly want to rely on some
of the expertise that I gained in standing up new programs
coming out of the Great Recession during the Obama
Administration, new grant programs that we deployed those funds
very quickly, very efficiently, and I would seek to do the
same.
But I would certainly want to work closely with the staff
of NTIA and also engage stakeholders across the country, tribal
leaders, local Government officials, and of course, business to
make sure that we are doing everything in our power to expedite
broadband access across the country.
Senator Rosen. Thank you. I appreciate that. And I guess I
am going to keep it real Nevada specific, because one thing we
have plenty of in Nevada is sunshine. What does that mean? It
means you have a robust solar industry, and it is incredibly
important because we have lost the most solar jobs per capita
than any other state in the country. And before her
confirmation hearing of Secretary Raimondo, I expressed my
serious concerns with Section 201 tariffs on imported solar
panels and cells. These misguided tariffs have cost us an
estimated 62,000 solar jobs across the U.S.
And when these tariffs increase to about 18 percent, they
are going to cause more job losses already on top of the
economic crisis has been caused by the pandemic. And so we
really have to move our solar industry forward and Section 201
tariffs will simply kill more American jobs. So will you commit
to working with me and my team to address this pressing and
time sensitive issue as we work to roll back the current
tariffs on imported solar panels and hopefully improve our
solar industry in general?
Mr. Graves. You absolutely have my commitment to work with
you and your team on that issue and make certain that
unintended impacts when using our tariffs are not occurring in
industry. I think I would completely agree with you that we
need to do everything we can to protect our industries. And in
keeping with the President's commitment on climate change, this
is something that we should definitely take a look at so we
will commit to working with you on it.
Senator Rosen. Thank you so much, and I yield back.
The Chair. Thank you. Senator Lummis. I will give Senator
Lummis a second here. I will just say on that last point that
Senator Rosen was making, I hope the Administration will really
look at a reset, you know, as it relates to tariffs. We have
had some of the same disputes that are still ongoing.
So we didn't resolve anything. And these actually, you
know, what she is referring to started with the Obama
Administration. So we lived through that and 4 years of the
Trump Administration and we still have the same--we have not
gotten off the dime. So the tariffs haven't resolved the issue.
So we hope that we will have a more engaged Department of
Commerce in trying to help us on these important issues.
Senator Lummis.
STATEMENT OF HON. CYNTHIA LUMMIS,
U.S. SENATOR FROM WYOMING
Senator Lummis. Thank you, Madam Chairman. I really
appreciate the opportunity to ask some questions today. Making
sure economic opportunity is inclusive is really important to
me as well. And in order for economic opportunity to be
inclusive of rural and tribal communities in my home state of
Wyoming and across the country, closing digital divides must be
a priority. So I have a few questions on that issue. As you
know, one of the challenges that comes with providing service
to rural and hard to reach areas is overbuild. What do you
envision is the best way to counter overbuild and ensure that
funding for rural broadband is going to truly underserved
areas?
Mr. Graves. Well, thank you, Senator, for that question. I
too share a commitment and focus on broad economic
inclusiveness, inclusivity, and closing the digital divide is
clearly one of the top issues. I would want to work closely
with the staff at NTIA on this issue to make sure that we are
fully understanding the impact of overbuild on areas like rural
areas which are unserved or underserved. I would want to work
with you as well and your staff on making sure that we are
finding ways to get broadband access to those unserved and
underserved areas.
Senator Lummis. Well, that is music to our ears. And we
would love to take you up on that. And I appreciate your
willingness to engage with us on that. Innovation is also an
important part of solving the digital divide, but with the
importance of getting reliable connections to communities and
the huge expense of doing so, do you believe Federal funding
should be going to broadband technologies that are in beta
testing rather than ensuring Federal funding goes to
technologies that are proven?
Mr. Graves. Senator, thank you for that. I think it is
always a balance when you are talking about new technologies
versus proven technologies. I would want to work with the
wonderful career staff at NTIA to get a better understanding of
what is the best and most effective, balanced approach. As you
point out, innovation is critical for this country. It has been
really important for us to have the type of economy that we
have been able to grow over these many hundred years.
And so I would certainly want to make sure that the Federal
Government is doing what it can to invest in ways that--in
areas that the market may not be able to make appropriate
investments in, but at the same time, making sure that we are
providing resources to ensure that proven technologies are
being used to bridge gaps like in rural and other underserved
areas.
Senator Lummis. And switching gears a little bit. Wyoming
was fortunate during the pandemic to have a really robust
outdoor recreation, tourism opportunity for people, and they
took advantage of it. So we had a decent end of season, but our
hospitality industry was still hit hard. A recently released
report from the World Tourism and Travel Council stated that
the uncertainty in the travel and tourism industry will
continue for months to years. What do you envision the Commerce
Department's role being in the recovery of the American tourism
industry over the long term?
Mr. Graves. Thank you, Senator. I too believe that we need
to do more and quickly to support the travel and tourism
industry. It is a critically important part of our economy. I
would certainly want to work with the Travel and Tourism
Advisory Board, work with stakeholders across the country, and
work with members of this committee to use all of the resources
that the Department of Commerce has to deal with this issue,
including the Economic Development Administration and the
Minority Business Development Agency, to make sure that the
small businesses and mid-sized businesses that have been so
adversely affected by the pandemic have the resources that they
need to come back and come back in a strong way.
Senator Lummis. That Tourism Board has some--the Advisory
Board has some heavy hitters on it, so that is a great answer.
Madam Chairman, thank you. I yield back.
The Chair. Thank you, Senator Lummis. Senator Peters.
STATEMENT OF HON. GARY PETERS,
U.S. SENATOR FROM MICHIGAN
Senator Peters. Well, thank you, Madam Chair. And Mr.
Graves, it is great to see you here before us on the Committee.
So I want to say, I will start off for the record and for my
colleagues to share my appreciation for the work that we did
together when I was a member of the House and certainly know
your passion for small business. And together we collaborated
to pass the State Small Business Credit Initiative, which,
after its creation, is responsible for over 10,000 jobs in
Michigan and thousands of jobs all across the country. We did
that together in 2010. Now, here we are a decade later and we
are about to further realize again, once again, the success of
that program with a $10 billion investment in the America's
Rescue Plan, which I am confident will continue to be
successful and create more jobs.
And the work that you do in the small business community I
think bodes well for your work here at the Department of
Commerce. So, again, thank you for that effort on your part and
look forward to, if confirmed, to continuing to work with you.
And as you know, one of my passions is manufacturing. Coming
from Michigan and a manufacturing state, and as someone who in
my core believes that you can never be a great country if you
don't actually make things and manufacturing is the core of our
economy, you and I have had the opportunity to discuss my
proposal for a National Institute of Manufacturing, which will
elevate manufacturing, coordinate all of the 58 plus programs
dealing with manufacturing across 11 different Federal
agencies, in that proposal will create a chief manufacturing
officer, develop a national strategic plan for manufacturing,
revive and elevate the National Manufacturing Council that
currently exists, as well as a host of other initiatives.
So my question to you, Mr. Graves, is can you speak to what
you believe the Department of Commerce role should be in
manufacturing? And how can we improve the manufacturing
environment in this country?
Mr. Graves. Thank you, Senator. I very much have enjoyed
our conversations recently and over the years and thank you for
everything that you have done to support the State Small
Business Credit Initiative and small businesses. And as it
relates to your question, I completely agree that manufacturing
is vital to this Nation's economy, to our long term prospects,
that we need to do more to increase the support for
manufacturers. And that includes a balance of ensuring that we
have a fair and level playing field across the globe using the
export controls that the Department has. At the same time,
making sure that we are investing in research and R&D and
innovation.
That we are creating the jobs of the future, and that we
are also using the Economic Development Administration, the
Minority Business Development Administration, to support those
small and mid-sized manufacturers at critical times in their
growth. And I would, if confirmed, would also want to work with
the Departments of Education and Labor to ensure that we are
supporting the American workers, getting them the training that
they need so they can be successful.
But I would absolutely want to work closely with you on
your proposal. And as you know, I have spent a lot of time with
manufacturers in Michigan as well as in my home state of Ohio,
so this is near and dear to my heart.
Senator Peters. Well, I know that, Mr. Graves, and I look
forward to having that opportunity. You know, one thing that we
also have to focus on as we compete globally is that we have to
make sure the rules are fair. We know we have the best
manufacturing firms in the world. We have got the best workers
in the world. We can outcompete anybody in the world, but we
have to make sure the rules are fair. And sometimes it is very
difficult if you are in a small industry or--and trying to take
on nation states that are engaged in predatory trade actions.
The issue in Michigan, we have our cherry growers, for example,
who are right now hanging on for their lives because of dumping
from Turkey of cherries that could very well put them out of
business. It is one of our iconic agricultural products.
In fact Traverse City area is cherry capital of the world
for tart cherries, and we want to make sure there is a level
playing field. But they can't hire the army of lawyers and an
economist necessary to bring a trade action. So I have
introduced legislation with Senator Burr to create a team at
the Department of Commerce dedicated to monitoring trade flows
and producing self-initiation recommendations so that the
Federal Government can help these small producers, these small
manufacturers, stand up for their rights and their ability to
compete globally.
So my question to you, Mr. Graves, if confirmed, will you
work with me to advance this bipartisan self-initiation
legislation to provide an avenue for small trade exposed
sectors to have the Government self-initiate trade cases and
basically go to bat for them?
Mr. Graves. Well, Senator, you absolutely have my
commitment. And you have talked with me extensively about the
challenge that the cherry growers are having in Michigan and
other businesses. And I think that we need to use the tools at
our disposal, including the anti-dumping and countervailing
duties, laws, rules to ensure a fair competition because our
workers and our businesses can outcompete the world as long as
we are playing on a fair playing field.
Senator Peters. Right. Thank you, Mr. Graves.
Mr. Graves. Thank you.
The Chair. Senator Scott.
STATEMENT OF HON. RICK SCOTT,
U.S. SENATOR FROM FLORIDA
Senator Scott. Thank you, Chair Cantwell. Mr. Graves, thank
you for being here. Thank you for your willingness to serve. I
grew up in a family that struggled for work and so I was
Governor of Florida for 8 years and I put most of my time into
figuring out how we got more jobs. And we were able to do that.
We added 1.--well, Government didn't. The private sector added
1.7 million jobs. And so I am very concerned about where we are
right now and any policy that would impact job growth. One of
my biggest concerns up here is the role that communist China
has been has played in a variety of things. I mean, they
clearly don't comply with any agreements. They don't comply
with trade agreements. They are not they are not living up to
their last trade agreement. They don't live up to the
obligations under the WTO. I mean there is not--I am not seen
one thing that they have ever done that they said they are
going to do, unless--other than bad things.
And on top of that, you know, they are a horrible human
rights abuser with the Uyghurs, taking away the basic rights of
Hong Kong citizens. So my question for you is, and I have
talked to Bob Lighthizer about this quite a bit when he was the
trade rep is, how do you--how are we going to get them to
comply with anything and who is going to do it?
I mean, we don't hold them accountable for their violations
of the WTO and we don't hold them accountable for their
violations of the trade agreements. So what would be your plan
to hold communist China accountable?
Mr. Graves. Thank you, Senator. And I appreciated our
conversation on this topic as well. As we have discussed, China
is a threat to our security and our prosperity and our values.
And as we have seen, they have already hurt American workers
and businesses. They have blunted our technological advantage.
They have challenged our National Security. And as you have
pointed out, committed gross human rights violations. So in
answer to your question, I would want to, if confirmed, use all
of the tools at our disposal, both defensive and offensive, to
protect American businesses and prevent China from this type of
illegal practices and illegal actions.
I think that it requires a whole of Government approach
working with the foreign policy team, the National Security
team, and our economic policy agencies to develop a whole set
of practices for ensuring that the Chinese are held accountable
for their actions. And that includes working with our allies
and partners around the globe to help them understand that a
threat to us is not just a threat to us, it is also a threat to
them.
Senator Scott. I think we talked about that--thank you very
much. We talked about this also, you know, seasonal produce
farmers especially, I think throughout the Southeast, but for
sure at the state of Florida--it seems like Mexico has picked
the tomatoes first and strawberries and blueberries for
basically whatever we grow, they dump. And it is really unfair,
and it impacts jobs and livelihood of people in my state.
And I am sure it is true in other parts of the Southeast.
This was unfortunately not addressed in the USMCA. I worked
with the USTR in the past couple of years to see what we could
accomplish, you know, and they put some effort into it. So what
do you think we ought to--how are we ever going to help our
seasonal produce farmers in Florida and throughout the
Southeast, and do you have any plans for doing that?
Mr. Graves. Well, thank you, Senator. I would certainly
want to work with the career staff at Commerce, but also work
closely with USTR and utilize the anti-dumping and
countervailing duties rules to make certain that there is fair
competition. And you have made it very clear that the challenge
that the seasonal produce farmers are having. And I think that
that is a challenge not just in your state, but other states as
well.
We need to make certain that there is a fair and level
playing field across the globe for our industries, for our
workers, and that I would certainly want to work with, as I
said, with U.S. trade reps, but also the Department of Homeland
Security to make sure that foreign companies aren't evading the
laws because we need to make certain that our industries are
protected as best as they can be.
Senator Scott. Thank you. So one of the roles of the
Department Commerce is to make sure, as you know, we get more
jobs. And I don't know if that will ever end. So the need for
more jobs as we continue to grow our country and more people
want to come here because of our job opportunities.
One concern I have is the $15 minimum wage and the impact
that will have on jobs. The--some of the reports say it is
over, what, 1.4 million people are going to lose their job if
we raise it to $15, which--and I know you have got the other--
you will be you will be responsible for trying to make sure we
get more jobs. How do you view the minimum wage and what would
you do?
Mr. Graves. Thank you. Well, if confirmed, I would
certainly look to the lead of the President on this, but I
think that what we need to do is certainly follow his
recommendations that we move to $15 minimum over time. It is
clear that that brings millions of people out of poverty. At
the same time, we need to make investments to ensure that our
industries have the support that they need to grow. And also,
as I mentioned, that we are working with a fair and balanced--
excuse me, a fair and level playing field across the globe,
because that is really the challenge. If we can get our
competitors across the globe to play by the rules, it will make
it easier for us to bring up the wages of our employees here in
the United States.
Senator Scott. Thank you, Mr. Graves. Thank you, Chair
Cantwell.
The Chair. Thank you, Senator Scott. Senator Lujan.
Senator Hickenlooper.
STATEMENT OF HON. JOHN HICKENLOOPER,
U.S. SENATOR FROM COLORADO
Senator Hickenlooper. Let me make sure I am unmuted. Mr.
Graves, thank you for a very enlightening testimony. I am very
excited about the work you can do with the SBA. I am a small
business veteran myself. I want to ask you a little bit about
the Minority Business Development Agency. Over the last 10
years, they have generated something close to $40 billion in
contracts and capital. This should be an easy question, I hope.
Should Congress make this agency permanent?
Mr. Graves. Thank you, Senator. Well, I believe strongly in
the importance of the Minority Business Development Agency. I
think that there is a lot that we can do. I leave it up to this
body to make that determination. But I believe very strongly in
the mission of the Minority Business Development Agency. And
certainly if you made the determination that it should be--that
it should have statutory authority, we would certainly want to
do everything in our power to expand its use and its resources
and reach.
Senator Hickenlooper. Great, thank you. Very politically
astute. Now let's switch to the connection, the nexus between
small business and cybersecurity and certainly the Internet has
dramatically expanded the access of small businesses to markets
they couldn't imagine 20 years ago.
But it has also made them uniquely vulnerable to the
increasing number of hacks that take place often on--in
widespread environments. There is a statistic I find deeply
troubling that 60 percent of small businesses, once they have
been hacked, end up failing because of that hacking episode. So
is there some way that the National Institute for Standards and
Technology, NIST, can help provide some resources for small
businesses, both to deal with hacks once they have happened,
but also to do a better job of preventing hacks?
Mr. Graves. Thank you, Senator. That is a great question. I
am very concerned about our Nation's cybersecurity,
particularly the cybersecurity of our small, mid, and large
businesses. But even more so the small businesses, as you point
out, that don't have the resources to take the type of
protective steps that they might--that larger businesses might.
I believe that the very talented staff at NIST can certainly
work closely with external stakeholders, including the research
institutions, our local and State Governments, to provide
greater information, to provide information about the types of
standards and practices that those businesses can take and
should be taking for their cyber health. And I also would like
the Department of Commerce, if confirmed, to work closely with
the Small Business Administration and other parts of the
Administration to ensure that resources are provided to those
small businesses so that they can take the precautionary steps
that they need to avoid cyber intrusions.
Senator Hickenlooper. Great. Well, we agree on that.
Continuing on small businesses, certainly small businesses are
vulnerable to the challenges and effects of not being able to
attract talent. And in Colorado, we have embraced the
apprenticeships and career technical education, CTE. We have a
program called Career Wise, which is a pilot on these
apprenticeships that are not just in the trades, but include
banking, insurance, advanced manufacturing, pretty much
everything.
What can Commerce do to partner with the states to help
accelerate the skills transfer that we are going to need--you
know, each wave of automation and artificial intelligence,
these waves change our professional landscapes? How can the
Commerce help be a better partner with the states?
Mr. Graves. Well, certainly there are very few issues that
are as important as this issue, the need for growing our talent
inside the United States and also attracting talent and keeping
talent from around the globe. Small businesses rely on that
talent and have far fewer resources than larger firms do. I
would certainly, if confirmed, want to work closely with the
Department of Labor and the Department of Education on this.
But to your point, also working closely with the states and
local Governments, with stakeholders.
As I have seen in the work that I have done, if you have
those conversations, you can get at the specific needs of the
small businesses and not end up producing workers and folks who
have, who were trained in one area, but that area is no longer
relevant to the needs of the businesses. So but I would
certainly want to work with you closely on that issue as well.
Senator Hickenlooper. Well, thank you and we agree. I look
forward to working with you. Thank you very much.
The Chair. Thank you, Senator Hickenlooper. Thank you. Mr.
Graves. I have a few more questions. We may have a couple of
other members here check in. We will find out, but if not, we
will--after this we will excuse you. But I wanted to follow up.
You know, we talked about science and climate a little bit.
And you mentioned in your testimony, too. Obviously, we
want to see very strong science integrity out of the Department
of Commerce. And the mission of NOAA on weather forecasting is
critically important. So we want to see an enhanced
collaboration between NOAA and the research entities across the
Federal Government to make sure that we are working
collaboratively, that we are on the same page. You were the
head of the Cancer Moonshot, so you worked, you know, to break
down barriers and improved collaboration.
I am very big on collaboration. I see it work all the time
in the State of Washington on things that people really don't
agree on. I mean, literally vehemently opposed but sit down and
figure out how to make progress. Why? Because you live in an
information age and you have new data and information.
So if you can get people to the table, chances are you are
going to get some collaboration off of that data. So what can
you do to help elevate that experience that you had at NOAA to
help us on the science and technology related to weather
forecasting?
Mr. Graves. Chair Cantwell, thank you for that. The
integrity of science and data, particularly in the climate
field, is vital to our long term economic interests. And I
would first say that the expert staff of the National Weather
Service and more broadly at NOAA are doing a fantastic job. We
know that there are positions that need to be filled at the
National Weather Service so I would prioritize getting those
positions filled as quickly as possible because they are
stretched thin.
But I also completely agree with you on the need for
greater collaboration, breaking down of silos, as we saw with
the Cancer Moonshot. Too often cancer labs--it is in their
interest to keep information to themselves because then it
means that if they have a success, they get a big win and they
get notoriety and more funding. That shouldn't be the case
certainly in cancer initiatives, but it definitely shouldn't be
the case as it relates to weather prediction and modeling.
And we should work with every stakeholder across the
Federal Government, but also our local and State partners to
ensure that we have the best data science, that we are doing
everything in our power to break down those silos, and remind
folks that it is the American taxpayer, it is the American
consumer, it is American businesses that are our clients, and
that that is where our interests should be aligned.
The Chair. Well, I am glad to hear you say that. But I do
think there is--we have this example in December where the
Weather Service launched a new website that was based on radar
imagery that I would just say was subpar. And so for us, I
mean, we have so much traffic, we need to know whether
Snoqualmie Pass is going to be shut down and whether you have
to make alternatives. We need to know whether we are going to
have these power outages.
Whether that is caused by, you know, fire or--we have done
great work in enhancing the law as it relates to smoke
forecasting, because this is critically important to with the
level of fires that are out there. So I just I hope that you
guys will--I think you are exactly right. This is about the
taxpayers getting a fair return and getting the best
technology. And we don't want to keep constantly hearing that,
well, here is what the U.S. model says and then here is what
the European model says. Why? Because the Europeans have just
put more data or big computing behind the information.
So we hope that the United States will do that as well. I
mentioned salmon earlier. We would like to see a strategy to
obviously make an impact on the decline in salmon. And so as we
talk about an infrastructure bill, we need to also think about
habitat restoration and bold scientific initiatives around
that. So would you work with us to boost salmon efforts and
with a clear eye on how they are being impacted by climate?
Mr. Graves. Well, I couldn't agree more with you. And let
me, if I may Madam Chair, just go back and just say I
completely agree with you on the weather data. The United
States deserves the gold standard in weather prediction and in
modeling. So I completely agree with you on that. And on the
infrastructure, yes, I agree with you as well. We should be
doing all that we can to invest in a robust salmon
infrastructure and more broadly in our fisheries management.
You have my commitment to work closely with you on that issue.
The Chair. Great. Well, I think that concludes our
questions. I want to thank all our colleagues for their input.
And we had a lot of subjects covered. As you can see, this job
is a very broad portfolio, but we appreciate, as I said at the
beginning, your willingness to serve and look forward to
conversations with you on an ongoing basis.
The record here will remain open for two weeks until March
24, 2021. Any Senators who would like to submit questions for
the record--Mr. Graves, so he can answer, should do so by March
24. And we ask you to submit your response to those questions
as quickly as possible in case--no later than 2 weeks after you
have received them, because that helps us in our Committee
process and our hearings. So unless there is any other business
before the Committee, we are adjourned.
[Whereupon, at 11:44 a.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. Amy Klobuchar to
Don Graves
Economic Steel Dumping. Iron ore mining has been a way of life for
families in northern Minnesota, but illegal practices such as steel
dumping unfairly harm our workers. Our workers deserve to know everyone
is playing by the same rules, and I have long called for tough actions
to address Chinese steel dumping.
Question 1. How do you plan to collaborate with the United States
Trade Representative to enforce fair trade practices, especially with
regard to steel dumping?
Answer. The Biden Administration and the Department are committed
to strong enforcement of U.S. trade remedy laws, including with respect
to unfairly traded steel imports from China and other trading partners.
If confirmed, I will work with Commerce staff and, when appropriate,
the Office of the United States Trade Representative, to expeditiously
address non-compliance matters and refer for dispute settlement as
needed.
Broadband. As co-chair of the Senate Broadband Caucus, I lead
broadband infrastructure legislation with House Majority Whip Clyburn--
the Accessible, Affordable, Internet for All Act. Our legislation
authorizes major investment in broadband infrastructure to help close
the digital divide.
Question 2. What are your plans to help expand broadband access as
the Deputy Secretary of Commerce?
Answer. The Department of Commerce's National Telecommunications
and Information Administration (NTIA) has three new programs: 1) the $1
billion Tribal Broadband Connectivity Program; 2) the $300 million
Broadband Infrastructure Program; and 3) the $285 million Connecting
Minority Communities Program. These programs will play a vital role in
bringing broadband to tribal lands, along with other unserved areas of
the country, and the Connecting Minority Communities Program will be
focused on connecting underserved communities through Historically
Black Colleges and Universities and other Minority-Serving
Institutions. If confirmed, I look forward to assisting in ensuring
these programs are implemented effectively and efficiently.
And of course, as you know the President's Jobs Plan proposes an up
to $100 billion investment to bring affordable, reliable, high-speed
broadband to every American. Broadband Internet is the new electricity.
It is necessary for Americans to do their jobs, to participate equally
in school learning, health care, and to stay connected. I'm excited to
work with Congress to pass the Jobs Plan so that we can finally close
the digital divide.
Question 3. What are your plans to promote digital equity and
inclusion, and will you work with me to help address this need?
Answer. I have spent my career working on equity and inclusion
issues so if confirmed, I look forward to working with you to address
this important need. I will also work to ensure that NTIA leverages its
knowledge and best practices to promote digital equity and inclusion.
The President's Jobs Plan also commits to addressing not only lack of
broadband infrastructure, but also to tackling the digital divide--to
addressing the adoption and affordability problem.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Don Graves
Papahanaumokuakea Marine National Monument. The expansion of the
establishment and expansion of the Papahanaumokuakea Marine National
Monument (PMNM) marks an extremely consequential development in the
U.S. conservation portfolio because it obligates the United States to a
course of environmental stewardship, scientific exploration and
research, and cultural/historical preservation. The National Marine
Sanctuary Foundation (Foundation) has presented a spectrum of funding
priorities in its letter to Secretary Raimondo dated February 16, 2021,
and to the Biden Administration, dated March 2, 2021. Letters attached
for reference. These letters describe the resources needed to support
not only the PMNM, but the entire network of marine national monuments
and national marine sanctuaries.
Question 1. Do you support the Papahanaumokuakea Marine National
Monument? Why or why not?
Answer. I support Papahanaumokuakea Marine National Monument, which
has a long history of bipartisan support and Presidential protection by
both Democratic and Republican Administrations. The monument
encompasses coral islands, seamounts, banks, and shoals that are both
ecologically significant for their extraordinary biodiversity and of
great cultural and spiritual importance to Native Hawaiians. If
confirmed, I look forward to working with you and Congress to conserve
such special places.
Papahanaumokuakea Sanctuary Designation. In recognition of the
importance of the site, the Congress included language in the Joint
Explanatory Statement of the Managers to the FY21 omnibus
appropriations legislation that directed the National Oceanic and
Atmospheric Administration (NOAA) to commence the Sanctuary designation
process for the PMNM: Papahanaumokuakea Sanctuary Designation.--NOAA is
directed to initiate the process under the National Marine Sanctuaries
Act (16 U.S.C. 1431 et seq.) to designate the Papahanaumokuakea Marine
National Monument as a National Marine Sanctuary to supplement and
complement, rather than supplant, existing authorities. NOAA shall
provide the Committees an update on this designation before the end of
Fiscal Year 2021.
Question 2. May I have your commitment to work with me on NOAA's
efforts to implement this language?
Answer. Yes. If confirmed, I will support NOAA's initiation of the
process to designate Papahanaumokuakea Marine National Monument as a
National Marine Sanctuary, and ensure NOAA provides an update by the
end of this Fiscal Year.
NOAA Budget Support. In order to fulfill the stewardship
responsibilities for the PMNM, and to implement the Congress's mandate
on sanctuary designation, NOAA will need significant resources, such as
those described in the Foundation's letters to the President and
Secretary Raimondo.
Question 3. May I have your commitment to work with the Congress
and external partners to ensure strong support for both marine national
monuments and national marine sanctuaries in the budget and
appropriations process for FY22?
Answer. If confirmed, I commit to working with Congress and
stakeholders to determine appropriate resources for marine national
monuments and national marine sanctuaries that are managed or co-
managed by NOAA.
______
Response to Written Question Submitted by Hon. Tammy Baldwin to
Don Graves
Environmental, Social, and Governance (ESG). Mr. Graves, I have
question with respect to the growing emphasis on environmental, social
and governance (ESG) performance by our Nation's businesses. Over the
last several years I have been working closely with several entities in
Wisconsin including The Water Council, Marquette University and
Wisconsin Center for Manufacturing & Productivity to support their
expanding national leadership with respect to water technology,
sustainability, and sustainable finance.
Question. With the President's emphasis on strengthening American
manufacturing, addressing climate change and attention to ESG, can I
get your commitment to work with me and our Wisconsin entities to
improve the resilience of U.S. supply chains and business
competitiveness with respect to ESG?
Answer. If confirmed, I will work with NIST and encourage continued
support of the efforts of the Wisconsin MEP Center, WCMP, and the NIST
MEP National Network on initiatives like this in Wisconsin and other
states to build resilient U.S.-based supply chains that contribute to
business competitiveness.
______
Response to Written Questions Submitted by Hon. Jacky Rosen to
Don Graves
Manufacturing. Manufacturing has always been an important part of
the American economy and while some of the products we used to make now
are produced oversees, America still leads the way in producing
semiconductors, the microelectronics that serve as the brains for
everything from PCs, to phones, to modern medical devices. These tiny
instruments are the keystone upon which the entire digital economy is
built. They have applications for civilian and defense purposes and it
is critical that we continue to lead the world in chip manufacturing.
But American firms are at a disadvantage vis-a-vis foreign firms since
foreign governments provide so many incentives to their companies that
a Boston Consulting Group study found that it's almost 30 percent more
expensive for a company to build a fab in the United States than it is
overseas.
Last year, Congress passed landmark legislation aimed at
strengthening the American semiconductor industry. The CHIPS Act is
critical to America since it will help our Nation continue to lead the
way in semiconductor manufacturing. The Department of Commerce is
responsible for the act's main grant programs. While the bill is silent
as to which bureau will lead the grant program, it would make sense to
me that it would be led out of NIST, since NIST leads advanced
manufacturing efforts within the Department and across the government.
Question 1. Mr. Graves, as Deputy Secretary of Commerce you will be
the Chief Operating Officer of the Department. What steps will you take
to ensure the bill is implemented properly?
Answer. Successful implementation of the CHIPS Act will be one of
the highest priorities for me if I am confirmed. I believe the
implementation of this legislation is critical to regain U.S.
semiconductor technology and R&D leadership, increase market share in
bleeding-edge logic fabrication, and maintain market share in overall
fabrication capacity including older-generation logic and memory chips.
It is my understanding that the Department has actively been
engaging with its bureaus to implement the CHIPS Act. If confirmed, I
will seek briefings to ensure I am quickly brought up to speed on the
Department's progress to implement the Act, and I look forward to
working with our bureaus, including NIST, to ensure that the grant
program is administered appropriately.
National Weather Service. There are over 400 vacant positions in
the National Weather Service (NWS), many of which are characterized as
emergency-essential employees.
Question 2. What is your understanding or the reason why the NWS
hasn't backfilled these vacancies and will you make doing so a
priority?
Answer. The National Weather Service should be gold standard for
weather prediction worldwide. We have some of the best scientists in
the world in NOAA and the National Weather Service.
The increase in extreme weather events only highlights the
importance of having a first-rate weather prediction service. Protects
lives, businesses, property with timely provision of reliable data. As
a result, it is important to fill vacancies as expeditiously as
possible.
However, it is my understanding that while NOAA's National Weather
Service has had a history of staffing difficulties, these issues have
been largely addressed.
If confirmed, I will work to ensure that NOAA, and all of bureaus
at the Department of Commerce, execute their budget and staffing in
accordance with Congressional funding and direction.
______
Response to Written Questions Submitted by Hon. Kyrsten Sinema to
Don Graves
Semiconductor Manufacturing Grants. Semiconductors play a crucial
role in our economic and national security. The 2021 defense
authorization law included important provisions to incentivize domestic
semiconductor manufacturing and reverse the decline in American
semiconductor manufacturing jobs. I am committed to working with my
colleagues in the Congress to fund the CHIPS for America Act grants.
Question 1. Will you commit to depoliticize the grant process and
to establish a procedure that reviews applications and distributes
grants based on the benefits to domestic semiconductor manufacturing
and not based on politics or the location of the project?
Answer. If confirmed, I am committed to running a process that
adheres to the requirements outlined in the Fiscal Year 2021 National
Defense Authorization Act (NDAA) and that is oriented at ensuring that
the U.S. is able to regain semiconductor technology and R&D leadership,
increase market share in leading-edge logic fabrication, and maintain
market share in overall fabrication capacity.
Semiconductor Research. In addition to the grants to expand
domestic manufacturing of semiconductors, the 2021 National Defense
Authorization Act calls on the Department to establish a National
Semiconductor Technology Center (NSTC). The NSTC is intended to conduct
research, development and prototyping to maintain U.S. leadership in
this critical technology.
Question 2. What role do you envision your Department playing in
funding research in critical technologies, such as semiconductors?
Answer. The Department of Commerce plays a critical role in
advancing R&D for the manufacture and production of next generation
semiconductor technologies. If confirmed, I will encourage Commerce to
work across the government to create opportunities for advanced
manufacturing, design and packaging research, and prototyping and
workforce training to develop the next generation of engineers and
technicians.
Broadband Interagency Coordination. The National Telecommunications
and Information Administration (NTIA) can play a major role in
expanding broadband throughout Arizona. In addition to the programs to
designed to expand access into rural and tribal areas of Arizona, the
COVID relief bill also sets up a one-stop shop at NTIA to coordinate
broadband development opportunities across the executive branch.
Question 3. Will you commit to quickly establish that office and
help state and local governments identify all the opportunities for
Federal assistance for broadband deployment?
Answer. I strongly agree that NTIA can play a major role in
expanding broadband throughout Arizona, and the establishment of better
interagency coordination. If confirmed, I commit to working to quickly
to improve coordination that program.
Cross Border Trade. Cross border trade is an economic driver of
Arizona's economy. A University of Arizona study shows that Mexican
tomato imports support 33,000 U.S. jobs. Agribusiness supply chains
derived from these imported tomatoes account for nearly $3 billion in
U.S. gross domestic product.
With trade agreements in place, such as USMCA, the North America
supply chain provides consumers with the opportunity for choice and
affordable produce while supporting our domestic growers. USTR has
recently initiated a number of trade investigations having to do with
imported produce, specifically related to seasonality concerns. These
investigations destabilize the supply chain and open the door to
potential damaging retaliations from our trade partners. That's why I
joined with Senator Moran and other members of Congress to send a
letter to USTR, urging them to consider the potential impacts when
making these decisions.
Question 4. In your opinion, how do we continue to foster a strong
trade supply chain while not disrupting the USMCA and ensuring our
domestic growers are supported and consumers are given affordable
choices throughout the year?
Answer. The Department will continue to use the tools available to
help ensure that domestic producers/farmers of seasonable and
perishable goods are competing on a level playing field. If confirmed,
I can assure you that those tools will be applied in a fair and
transparent matter, in line with U.S. law.
Commercial Space. The commercial space industry is growing at an
incredible speed--creating jobs, innovating, and fostering public-
private partnerships across the country. Yuma, Arizona is currently
going through the process to establish a spaceport that would have the
ability to launch mini and nano satellites. If the spaceport moves
forward, it will grow Yuma's economy and help the United States remain
a leader in space.
Question 5. As the commercial space economy expands and more
technology is sent into space, how will you work with entities to
ensure the National Airspace System is able to support additional
launch and reentry points as well as increased traffic?
Answer. I understand the importance in providing space situational
awareness and traffic management to ensure safe and productive
development in the space economy. If confirmed, I look forward to
working with NOAA, other Federal agencies, and Congress on this
important topic.
Space Traffic Management. Given the exponential growth in numbers
of satellites and the increasing amount of debris in orbit, the Office
of Space Commerce is charged with protecting the space-based services
that are critical to our Nation's infrastructure, sustaining U.S. space
sector leadership globally, and international space cooperation. Last
year Congress provided increased funding for the Office of Space
Commerce and direction to initiate a Space Traffic Management (STM)
pilot program in collaboration with industry.
Question 6. What are your thoughts on the importance of Space
Traffic Management?
Answer. Successful and collaborative space traffic management will
be essential if the U.S. and the world are to realize the potential
benefits of a healthy and growing space economy. If confirmed, I look
forward to working with NOAA, other Federal agencies, and the Congress
on this important topic.
Privacy Shield. In July of 2020, the European Court of Justice
struck down the Privacy Shield program, invalidating a critical
mechanism for transferring personal data to the United States from the
European Union. This has raised significant concerns about the
continued viability of trans-Atlantic data flows, which are estimated
to generate more than $7 trillion in economic activity.
Question 7. As Deputy Secretary of Commerce, will you support and
prioritize the on-going negotiations to replace the Privacy Shield
program with the goal of ensuring the continued viability of trans-
Atlantic data flows?
Answer. Negotiating an enhanced Privacy Shield and restoring
stability to trans-Atlantic data flows is a top priority for me if I am
confirmed to be the Deputy Secretary of the Department of Commerce.
Bioscience and IP Rights. In Arizona, our bioscience and biotech
industries fuel new jobs, and delivering life-changing innovations.
We've worked hard in Arizona to leverage smart public sector
investments to attract next generation start-ups, as well as global
companies looking to build out manufacturing and research facilities.
Arizona inventors have been awarded more than 2,000 bioscience-related
patents since 2016. Never have the benefits of strong IP been as
relevant as they are today We have seen how pharmaceutical researchers
have worked so quickly to develop COVID vaccines and therapeutics, and
the importance of going after stolen IP and fraudulent medical
products.
Question 8. In order to continue driving discovery and to maintain
the global competitiveness of American and Arizonan companies, how will
the Commerce Department use trade enforcement tools to create a level
playing field and protect millions of American jobs?
Answer. If confirmed, I will support Secretary Raimondo's
commitment to leverage the Department's extensive expertise and
resources, including the U.S. Patent and Trademark Office and the
International Trade Administration, to promote the protection and
enforcement of Intellectual Property (IP) rights around the world by
providing training and technical advice to foreign trading partners.
This includes continued outreach and assistance to U.S. IP owners,
including small businesses, in the protection and licensing of their
patented inventions and copyrighted works, including through our
network of Intellectual Property Attaches in embassies, consulates, and
missions around the world.
______
Response to Written Questions Submitted by Hon. Raphael Warnock to
Don Graves
FCC. The COVID-19 pandemic has highlighted existing inequalities
families and communities have faced for too long. One issue in
particular pertains to broadband as we have seen our children struggle
with significant learning loss due to remote learning. In Georgia, 1 in
5 rural Georgians are without high-speed Internet access. Thankfully,
before I arrived in the Senate, $3 billion in broadband subsidies were
included in the December 2020 package to help Americans afford Internet
access. Then, the American Rescue Plan Act, which was passed and signed
into law with my support, included over $7 billion in E-Rate funds for
schools and libraries.
Question 1. How will you support the Federal Communications
Commission to ensure these funds are distributed as quickly and
efficiently as possible?
Answer. Coordination among Federal agencies is critical to
addressing your concerns about the loss of learning and additional
difficulties families and children in particular have faced in dealing
with the COVID-19 pandemic. If confirmed, I commit to leveraging
resources of the Department to address the issues associated with
connecting Americans to affordable Internet access for learning and
earning, as well as coordinating with the Federal Communications
Commission (FCC), the U.S. Department of Agriculture, and other Federal
departments and agencies to close the digital divide in our country.
MBDA. I would be remiss to not also mention the many businesses
that have shuttered because of the pandemic. My father was a small
businessman who worked tirelessly to support me and my siblings.
Because of him, I'm particularly interested in the Minority Business
Development Agency (MBDA) and its work to promote private and public
sector investments in minority businesses. The Atlanta business and
advanced manufacturing MBDA centers are housed at Georgia Tech and have
helped thousands of entrepreneurs and manufacturers.
Question 2. Given your family's entrepreneurial spirit, do you have
a vision for what that agency can accomplish not just in response to
COVID but broadly?
Answer. My vision for the Minority Business Development Agency
(MBDA) is to expand its reach and impact on underserved communities.
There are more than 9.2 million minority business enterprises but only
2 percent have more than one employee. This is lost opportunity for our
Nation's economy. MBDA is uniquely qualified to lead the Federal
government's efforts to equip and empower the Nation's minority
business enterprises (MBEs) for the domestic and global economies. The
Agency has worked with the minority business community for over 50
years and has the expertise, nationwide presence, and strategic
partners to ensure that taxpayer investments produce sustainable
outcomes for the minority business community.
MBDA promotes the growth of minority business enterprises through
the mobilization of public and private sector partnerships, programs,
policy, and research. If confirmed, I will work to ensure MBDA can
accomplish its goals and maximize the resiliency and success of MBE
firms.
Question 3. Also, how do you feel about codifying the MBDA as a
permanent agency to ensure long-term, consistent impact? How can
Congress be of assistance to support those goals?
Answer. The establishment of statutory authority for MBDA would
elevate the importance of racial equity within our Nation's business
community. It would go a long way towards demonstrating community
investment and engagement in making our economy more inclusive.
NOAA. Climate change has increased the severity and variability of
natural disasters that impact Georgia and other Southern states. In
2019, the National Oceanic and Atmospheric Administration (NOAA)
awarded a contract to Gulfstream Aerospace Corporation located in my
hometown of Savannah for the purchase of a new Gulfstream G550. This
``Hurricane Hunter'' aircraft is important to improve weather service
reliability and capabilities. An administration that supports
scientific integrity is paramount, and incidents like ``Sharpiegate''
are unacceptable and mislead the public about the potential impacts of
harmful natural disasters. It is important to me that my constituents
are getting accurate and timely weather information and that NOAA has
the resources to do so.
Question 4. How will you work to ensure NOAA's scientific policies
are enforced and Georgians are more prepared for the impacts on natural
disasters and climate change?
Answer. On January 27, 2021, President Biden issued the
Presidential Memorandum on Restoring Trust in Government Through
Scientific Integrity and Evidence-Based Policymaking, which requires
scientific agencies to coordinate with a new Scientific Integrity Task
Force to ensure, among other things, that their scientific integrity
policies are consistent with scientific principles. It is my
understanding that NOAA already has one of the strongest Scientific
Integrity policies in government--we simply must work to ensure it is
followed and enforced. If confirmed, I will ensure that NOAA and the
Department conduct reviews to determine what additional steps are
needed to be in full compliance with the President's Executive Order,
including by implementing a robust scientific integrity policy at the
Department to improve trust and accountability.
Tackling climate change is a priority for the Biden Administration.
On January 27, 2021, President Biden released the Executive Order on
Tackling the Climate Crisis at Home and Abroad. If confirmed, I will
work through the expertise in bureaus like NOAA to help Georgians and
all Americans be more prepared in the face of natural disasters and
climate change.
______
Response to Written Questions Submitted by Hon. Roger Wicker to
Don Graves
Question 1. Impact of the COVID-19 Pandemic on the Travel and
Tourism Industry
The COVID-19 pandemic has devastated the travel and tourism
industry, resulting in hundreds of billions of dollars and millions of
jobs lost. Many are concerned that travel and tourism will be one of
the last sectors of the economy to recover fully. The Department of
Commerce has a number of tools at its disposal, including the National
Travel and Tourism Office, to support the travel and tourism industry.
What do you believe is the proper role of the Department of Commerce in
supporting travel and tourism in the United States, and, if confirmed,
how will you work to get the travel and tourism industry back up and
running as we come out of the pandemic? Do you believe the National
Travel and Tourism Strategy needs to be updated in light of the
challenges the sector has faced in the past year, as well as looking
forward?
Answer. The travel and tourism industry has been disproportionally
affected by the COVID-19 restrictions on travel that have been put in
place to protect public health. The Department of Commerce plays a
leading role with respect to this sector. If confirmed, I will work
with the National Travel and Tourism Office and the Commercial Service
(both in the International Trade Administration), the Economic
Development Administration, and public health authorities to help the
industry recover.
The Secretary of Commerce chairs the Tourism Policy Council, an
interagency council whose purpose is to coordinate policies and
programs to support the sector. Secretary Raimondo has expressed her
commitment to actively supporting the recovery of travel and tourism
and, if confirmed, I will support her in those efforts.
Question 2. Office of Space Commerce/Space Policy Directive-3/SPACE
Act
Today, the services offered by over 2,000 active satellites
underpin much of our modern economy--such as communications, weather
prediction, and GPS. But those satellites, as well as astronauts aboard
the International Space Station, are threatened by hundreds of
thousands of pieces of ``junk'' or space debris. In June of 2018, the
National Space Council announced Space Policy Directive 3, which
designated the Department of Commerce as the lead civil agency for
space situational awareness and notification of satellite operators of
potential conjunctions or collisions. Last year, Senator Cantwell and I
introduced the SPACE Act to codify much of this directive. The Office
of Space Commerce should be appropriately staffed and resourced to
provide timely and accurate tracking and collision warning
notifications to the growing number of commercial and international
space operators.
Do you agree that the Office of Space Commerce can play an
important role in fostering American economic leadership and
opportunities in space? Can you assure the committee that it will be
appropriately prioritized and resourced?
Answer. I understand that NOAA and the Office of Space Commerce
(OSC) play a key role in working with the U.S. commercial space
industry. If confirmed, I look forward to learning more about the OSC
and to working with Congress to ensure that it is properly resourced
and can serve this important function.
Question 3. Senator Cantwell and I plan to reintroduce the SPACE
Act soon. Will you review that legislation and work with us to protect
the space environment?
Answer. I understand the importance of providing space situational
awareness and traffic management to ensure safe and productive
development in the space economy. If confirmed, I look forward to
working with you to discuss legislation in this important area,
including by communicating the Department's recommendations on areas of
mutual interest and concern.
Question 4. Cybersecurity and SolarWinds Cyberattack
As highlighted by the recently disclosed SolarWinds nation-state
cyberattack, improving our Nation's cybersecurity requires working
closely with industry to develop and adopt best cybersecurity
practices. We can start to address some of our cybersecurity challenges
with swift implementation of the HACKED Act, focused on enhancing the
National Institute of Standards and Technology's role in advancing the
cybersecurity workforce and the CYBER LEAP Act, which directs the
Department to carry out competitions to tackle cybersecurity
challenges. I sponsored both pieces of legislation and am proud they
were included in the Fiscal Year 2021 National Defense Authorization
Act. Going forward, it is important to take into account the good work
that the Department of Commerce has undertaken on these issues as the
Executive Branch develops its cybersecurity strategy for all Federal
agencies. How would you advance the Department of Commerce's role in
strengthening our Nation's cybersecurity?
Answer. Strong and effective cybersecurity measures are needed to
ensure that the private and public sector can rely on robust and
trustworthy systems, and an expansion and transformation of our
Nation's workforce is needed to address current and projected severe
shortages of cybersecurity-savvy workers.
If confirmed, I would support NIST's role in developing
cybersecurity and privacy standards, guidelines, best practices, and
other resources to meet the needs of U.S. industry, Federal agencies,
and the broader public essential to economic security and growth.
Question 5. Semiconductor Shortage
The global semiconductor shortage highlights the fragility of our
Nation's supply chains. Many manufacturers, including automotive,
trucking, and power tool manufacturers in Mississippi and across the
country, are facing setbacks due to the chip shortage. There may be
near-term steps the Administration can take to address this shortage,
but in the recent defense authorization bill, Congress also directed
the Department of Commerce to incentivize longer-term investment in
semiconductor fabrication, assembly, and research and development in
the United States. What can the Department of Commerce do in the near
and long-term to address the semiconductor shortage?
Answer. The Department of Commerce plays a key role in facilitating
discussions with industry regarding the impact of the semiconductor
chip shortage on the U.S. automotive manufacturing industry, as well as
other key economic sectors. As you indicate, the NDAA, passed with
overwhelming bi-partisan support, authorized a fund at Commerce to make
the long-term investments we need to remain competitive in the
semiconductor industry and shore up a supply chain critical to national
and economic security. If confirmed, I will work to ensure that the
Department works closely with the White House and Congress on plans for
implementing a plan to address the semiconductor shortage.
______
Response to Written Questions Submitted by Hon. Ted Cruz to
Don Graves
Question 1. Entity List
The Bureau of Industry and Security's Entity List is a valuable
tool of the Federal government to punish companies and nations that
undermine the U.S.' economic and national security interests. I asked
now-Secretary Raimondo about the Entity List extensively and she
refused to provide specific answers on whether specific companies would
remain on the list.
The Chinese government is currently engaged in an ongoing systemic
genocide against Muslim Uighurs in Xinjiang, China. In recent years the
United States has successfully utilized non-sanctions economic pressure
to prevent the People's Republic of China from exploiting American
technology and innovation to conduct human rights abuses and other
malign activities. This is an area the prior administration was
particularly active in.
What role should the Department of Commerce play in
combating Chinese economic espionage and utilizing the full
extent of the Entity List to protect American companies?
Answer. It is my understanding that the U.S. government has
utilized tools, like the Entity List, to prohibit U.S. exports that
could be used to further the Uighurs' repression amidst ongoing
systemic genocide.
If confirmed, I will support Secretary Raimondo's review of how the
Bureau of Industry and Security's (BIS) authorities can continue to be
leveraged to promote the protection of human rights, as Congress
directed in the Export Control Reform Act (ECRA), including through
review of license applications for human rights concerns and additions
to the Entity List in connection with human rights abuses. I will also
support Secretary Raimondo's efforts to ensure any proposed additions
or removals from the Entity List comply with the policies and
procedures of the Export Administration Regulations (EAR).
Finally, if confirmed, I will support the Secretary's efforts to
encourage the use of the Entity List, the Military End User List, and
other appropriate tools within the scope of Commerce authorities to
protect U.S. national security and foreign policy interests.
Question 2. In 2019 I led an effort to add to the Entities List
companies that the Chinese Communist Party uses to conduct their
surveillance campaigns of the Uighurs in Xinjiang and other nefarious
activities, and even introduced legislation mandating that some of
those companies be listed, the TIANAMEN Act. In the fall of 2019 and in
2020, the Trump administration did so, adding batches of Chinese
technology companies to the Entities List.
I remain very concerned about the Biden administration's coziness
with China. In answers for the record provided after her nominations
hearing, Secretary Raimondo declined again to commit to keeping Chinese
technology companies hostile to American democratic values on the
Entities List.
Do you believe Chinese tech companies like Huawei and ZTE
should remain on the Entities List? If you disagree, why?
What is the risk to American companies if Chinese companies
are allowed access to the U.S. telecom network?
Answer. Telecommunications equipment made by untrusted vendors like
Huawei is a threat to the security of the United States and our allies.
I understand that parties are placed on the Entity List and the
Military End User List generally because they pose a risk to U.S.
national security or foreign policy interests. I currently have no
reason to believe that entities on those lists should not be there.
If confirmed, I look forward to a briefing on these entities and
others of concern. Furthermore, if confirmed, I will support the
Secretary's efforts to encourage the use of the Entity List, the
Military End User List, and other appropriate tools within the scope of
Commerce authorities to protect U.S. national security and foreign
policy interests.
Question 3. 2020 DNC Platform Committee
One of the core missions of the Department of Commerce is to
promote economic growth and the free flow of commerce.
Would you agree or disagree with that statement? If you
disagree, please explain the core mission of the Department of
Commerce.
Answer. I agree that the Department of Commerce is an instrumental
entity in promoting economic growth and the free flow of commerce. If
confirmed, I am committed to furthering the Department's role in this
regard.
The work of the 2020 DNC Platform Committee does not relate
specifically to the duties and responsibilities of the role for which I
have been nominated. While the 15-person platform committee's work
spanned a cross-section of issues, my role as a member of the committee
was primarily to help manage the process for the platform's
development.
The Deputy Secretary of Commerce's role is, by statute, to serve as
the Chief Operating Officer for the Department, which includes but is
not limited to the day-to-day management of the Department's bureaus.
The role requires the incumbent to serve as the principal deputy to the
Secretary in all matters affecting the Department and perform the
continuing and special duties as the Secretary may assign from time to
time. If confirmed, I am committed to carrying out these
responsibilities and supporting the important work of the Department.
Question 4. You served as a member of the Platform Drafting
Committee for the Democratic National Convention last summer. That
platform endorsed following California's example and pursuing extreme
executive actions like emissions standards, ``[accelerating the
adoption of zero-emission vehicles,'' and eliminating plastic waste and
food waste (pg. 52).
The platform also says ``we will immediately convene California and
other states with labor, auto industry and environmental leaders to
inform ambitious executive actions. . .'' (pg. 52). California is one
of the most out-of-touch and liberal states in the country. For
example, last year, Governor Gavin Newsom signed an executive order
banning the sale of combustion-engine vehicles in 2035.
Was it your personal opinion while you served on the
Committee that California is a role model for executive
actions?
Should the United States ban internal-combustion vehicles?
If you answered yes, when should such a ban go into effect?
If you answered yes, what would this do to affect road-based
travel?
If you answered yes, how would travelers refuel to complete
their journey?
If you answered yes, what would be the cost to retrofit
homes and businesses to recharge EVs, and who would bear those
costs?
If you answered yes, has the Federal government considered
the environmental harm associated with mining metals necessary
for EV batteries? What about the ethical concerns relating to
the slave and child labor in parts of the supply chains for
many EVs?
Answer. As a general matter, the work of the 2020 DNC Platform
Committee did not relate specifically to the duties and
responsibilities of the role for which I have been nominated. While the
15-person platform committee's work spanned a cross-section of issues,
my role, as a member of the committee, was primarily to help manage the
process for the platform's development, rather than its content.
The Deputy Secretary of Commerce's role is, by statute, to serve as
the Chief Operating Officer for the Department, which includes but is
not limited to the day-to-day management of the Department's bureaus.
The Deputy Secretary additionally serves as the principal deputy to the
Secretary in all matters affecting the Department and performs any
continuing and special duties as the Secretary may assign from time to
time. If confirmed, I am committed to carrying out these
responsibilities and supporting the important work of the Department.
Question 5. The platform, and the Committee that you sat on, called
President Trump's national emergency on the border ``fabricated.''
Was it your personal position while you served on the
Committee that the national emergency on the border was
``fabricated''?
If not, did you disagree with the DNC position that the
border crisis is fabricated while you served as a committee
member?
Is it your position now, that the situation we are
witnessing at the border today is neither a crisis and/or that
it is fabricated?
Answer. As a general matter, the work of the 2020 DNC Platform
Committee did not relate specifically to the duties and
responsibilities of the role for which I have been nominated. While the
15-person platform committee's work spanned a cross-section of issues,
my role, as a member of the committee, was primarily to help manage the
process for the platform's development, rather than its content.
The Deputy Secretary of Commerce's role is, by statute, to serve as
the Chief Operating Officer for the Department, which includes but is
not limited to the day-to-day management of the Department's bureaus.
The Deputy Secretary additionally serves as the principal deputy to the
Secretary in all matters affecting the Department and performs any
continuing and special duties as the Secretary may assign from time to
time. If confirmed, I am committed to carrying out these
responsibilities and supporting the important work of the Department.
Question 6. The platform says ``Democrats believe we need to
overhaul the criminal justice system from top to bottom. . .'' and
calls for investment in ``education, jobs, healthcare, and housing''
instead of ``overpolicing.'' (pg. 35).
The platform also calls for ``reimagining public safety.''
What does ``reimagining public safety'' mean?
Do you agree with the statement ``we need to overhaul the
criminal justice system from top to bottom''? If so, why? If
not, why not?
How would you define ``defund the police''?
Do you support defunding the police?
Did you support the riots perpetuated by Antifa in the name
of the ``Defund the Police'' movement that occurred the summer
of 2020? Why or why not?
Many Democratic politicians endorsed donating to bail funds
to help rioters get out of jail, including then-Senator and now
Vice President Harris. In fact, the bail fund pushed by then-
Senator Harris ended up bailing out not just rioters, but
alleged murderers, attempted murderers, and a twice convicted
rapist.\1\ Did you donate to any bail relief funds this summer?
If so, please disclose the recipient(s) of your donation(s) and
the amount(s).
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\1\ https://www.fox9.com/news/minnesota-nonprofit-with-35m-bails-
out-those-accused-of-violent-crimes
Answer. As a general matter, the work of the 2020 DNC Platform
Committee did not relate specifically to the duties and
responsibilities of the role for which I have been nominated. While the
15-person platform committee's work spanned a cross-section of issues,
my role, as a member of the committee, was primarily to help manage the
process for the platform's development, rather than its content.
The Deputy Secretary of Commerce's role is, by statute, to serve as
the Chief Operating Officer for the Department, which includes but is
not limited to the day-to-day management of the Department's bureaus.
The Deputy Secretary additionally serves as the principal deputy to the
Secretary in all matters affecting the Department and performs any
continuing and special duties as the Secretary may assign from time to
time. If confirmed, I am committed to carrying out these
responsibilities and supporting the important work of the Department.
Question 7. The platform says ``democrats will decriminalize
marijuana use. . .'' (pg. 37).
Do you support this position?
What other illegal drugs do you support making legal by
executive action?
Answer. As a general matter, the work of the 2020 DNC Platform
Committee did not relate specifically to the duties and
responsibilities of the role for which I have been nominated. While the
15-person platform committee's work spanned a cross-section of issues,
my role, as a member of the committee, was primarily to help manage the
process for the platform's development, rather than its content.
The Deputy Secretary of Commerce's role is, by statute, to serve as
the Chief Operating Officer for the Department, which includes but is
not limited to the day-to-day management of the Department's bureaus.
The Deputy Secretary additionally serves as the principal deputy to the
Secretary in all matters affecting the Department and performs any
continuing and special duties as the Secretary may assign from time to
time. If confirmed, I am committed to carrying out these
responsibilities and supporting the important work of the Department.
Question 8. Spectrum
The Department of Commerce's Office of Spectrum Management and NTIA
manage the Federal government's use of radio spectrum, an extremely
valuable commodity that is in high demand.
What is your philosophy regarding government-held spectrum
and how do you plan to make more available for commercial use?
How would you approach agency disagreements about spectrum
allocation?
Answer. The National Telecommunications and Information
Administration (NTIA) is the President's principal advisor on
telecommunications and information policy matters including spectrum.
NTIA has been successful over the past three decades in balancing the
spectrum requirements of Federal government agencies with the need to
provide more spectrum resources for commercial network deployments.
If confirmed, I will continue to rely on NTIA as I work closely
with the White House, other Federal agencies, the Federal
Communications Commission, the commercial sector, and other
stakeholders to understand requirements and find win-win solutions for
government and industry.
In terms of agency disagreements over spectrum allocations, if
confirmed, I will ensure that our longstanding interagency spectrum
coordination processes are working at their full potential, and that we
expedite and resolve any disputes through this process.
Question 9. One issue I have been continually concerned about is
the nationalization of 5G. My concerns stem from the fact that this
idea has yet to die. High profile individuals such as former Google
CEO, Eric Schmidt, had high level meetings with the Trump
administration in an effort to try and revive the push to nationalize
5G. Schmidt continues to enjoy access to senior government officials in
the Biden administration. Late last year the Department of Defense
issued a Request for Information on spectrum sharing, inquiring about
the ``potential issues with DoD owning and operating independent
networks for its 5G operations.''
To combat this initiative, last Congress I reintroduced the E-
FRONTIER Act with Senator Cortez-Masto--a bill which enjoys broad,
bipartisan support--to explicitly prohibit the nationalization of 5G.
That bill was unanimously passed out of this Committee shortly
thereafter, was reported to the full Senate, and but for the hold of
one Senator, would have passed unanimously out of the Senate. Bottom
line is, stakeholders and members of Congress agree that the United
States does not need to behave like China in order to beat China in the
race to 5G.
Do you support the principles of the E-FRONTIER Act and
would you support its passage and enactment into law, to
prohibit the nationalization of our commercial broadband
networks? If not, why?
Do you believe it would it be a bad idea for the Biden
administration to move forward with plans to nationalize 5G?
Answer. If confirmed, I would be happy to examine legislation and
legislative proposals on this issue and work with the Department to
provide technical assistance on this issue.
However, I personally do not support the nationalization of
commercial broadband networks.
Question 10. Duplicative Programs
One issue I am particularly interested in is wasteful spending of
taxpayer dollars through similar FCC, NTIA, and USDA broadband subsidy
programs. Overbuilding undermines private competition and makes
providers more reliant on Federal subsidies. In a recent Commerce
Committee hearing on Federal broadband spending, several broadband
experts were unable to fully quantify the amount of money the Federal
government has spent on broadband programs since it began trying to
connect all Americans.
Are existing programs effective?
What more can be done to promote targeted assistance to
rural and economically disadvantaged areas?
How can this be achieved without throwing taxpayer dollars
to providers and projects that have received subsidies through
similar programs?
Answer. Coordination among Federal agencies is a critical component
of addressing duplicative programs. If confirmed, I look forward to
reviewing programs within the Department of Commerce to find additional
efficiencies.
As you may know, I have spent much of my career working to assist
rural and economically disadvantaged communities.
If confirmed, I look forward to working with you on the matter of
targeting assistance to communities across the country that need it
most.
Why does the United States lack a dominate communications
infrastructure supplier, and do you believe this is to the
national detriment?
Does a software-based infrastructure give the United States
a competitive advantage if it proves to be viable?
Answer. The United States is home to some of the world's leading
technology firms, including telecommunications equipment and service
providers. If confirmed, I will actively work to ensure that U.S.
telecommunications companies are able to compete and win on a level
playing field both domestically and globally.
Question 11. How should the U.S. incentivize domestic production?
Are tax incentives a viable option?
Answer. If confirmed, I will work within the Administration to
consider options to incentivize domestic production of 5G
infrastructure. To this end, it is my understanding that the Department
of Commerce's National Telecommunications and Information
Administration (NTIA) hosted two industry listening sessions focused on
market incentives for 5G security and vendor diversity to hear feedback
from industry on actions that the U.S. government can take to support
these objectives. If confirmed, I look forward to working with
industry, the White House, and Congress to review these proposals.
Question 12. Trade enforcement
Approximately 40 million jobs in the U.S., and over 3 million in
Texas, depend on international trade. Given that, it is vital that the
United States do all it can to ensure a level playing field for
American businesses.
What do you plan to do in your role to protect Americans
from unfair trade practices which put them at a disadvantage at
home and abroad?
Answer. The Department of Commerce is committed to holding our
trading partners accountable when they violate our laws and trade
agreements. If confirmed, I will ensure that the Department continues
to proactively monitor, identify, and resolve trade barriers and work
with allies and likeminded trading partners to promote policies that
support U.S. exports and encourage foreign investment into the United
States.
Question 13. The Trump Administration made a concerted effort to
combat China's egregious trade violations.
Will you commit to continuing that effort in protecting
American businesses from China's trade abuses, especially with
regard to intellectual property theft and the unfair use of
State-Owned Enterprises (SOEs)?
Answer. If confirmed, I will work with Congress to protect U.S.
intellectual property and to protect U.S. businesses and consumers
against the unfair use of State-Owned Enterprises (SOEs).
Question 14. Obama Jobs Council
In 2012, while you were executive director of the Jobs Council, the
council issued dozens of recommendations intended to improve American
competitiveness and strengthen the economy. In your nominations
hearing, I asked you about the recommendations included in the year-end
report and you declined to answer whether you agreed or disagreed with
the recommendations when you were the executive director. You said ``.
. . the Jobs Council's recommendations were their own . . . I agreed in
part and disagreed in part.''
Please explain the duties of your role as executive
director, and what role you had in the final recommendations.
If you disagreed with the recommendations, did you regularly
disagree with recommendations and other policy decisions put
forward by the Obama administration? If so, please specify
which ones.
Do you agree or disagree with the following initiatives from the
Council's report?\2\ If you agree, please explain why. Similarly, if
you do not agree, please explain why.
---------------------------------------------------------------------------
\2\ President's Council on Jobs and Competitiveness. Road Map to
Renewal. 2011 Year-End Report.
``accelerating investment in infrastructure and energy''
---------------------------------------------------------------------------
(pg. 6).
``Igniting entrepreneurship and increasing the number and
scale of small businesses and high-growth firms'' (pg. 6).
``Boosting job-creating inward investment into the Unites
States through a National Investment Initiative'' (pg. 6).
``Simplifying regulatory review and streamlining project
approvals'' (pg. 6).
``Ensuring that America has the talent to fill existing job
openings and boost future job creation'' (pg. 6).
Answer. In 2012, I was proud to serve my country as the non-member
executive director of President Obama's Council on Jobs and
Competitiveness. The Jobs Council was created to provide non-partisan
advice to the President on continuing to strengthen the Nation's
economy and ensure the competitiveness of the United States and on ways
to create jobs, opportunity, and prosperity for the American people.
The Jobs Council was made up of members appointed by the President
who were distinguished citizens outside the Federal government,
including citizens chosen to serve as representatives of the various
sectors of the economy to offer the diverse perspectives of the private
sector, employers, and workers on how the Federal Government can best
foster growth, competitiveness, innovation, and job creation.
The recommendations made by the Jobs Council were offered by the
citizens sitting on the panel. They were meant to represent the views
of the members and did not necessarily represent my personal views. I
would welcome a discussion in person with you about the reports.
Question 15. The report states ``[skills gaps] start in primary and
secondary school, where the United States trails its peers in academic
achievement, scoring lower in math than 30 of the other 65 countries
and lower in science than 22 of the countries that participated in PISA
tests for 15-year-olds'' (pg. 6).
Would you agree that school choice, which would allow
students to escape under-performing schools and receive a
quality education elsewhere, is important for closing the
academic achievement gap?
What lessons should the Federal government learn from the
remote learning that millions of students experienced during
the pandemic?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 16. In 2011, the statutory corporate tax rate was 39.2
percent-``substantially higher than the average for other advanced
nations'' (pg. 7). The Tax Cuts and Jobs Act (TCJA) lowered the
statutory corporate tax rate to 26 percent in FY 2020.
Did the lower statutory corporate tax rate that resulted
from the TCJA improve U.S. competitiveness?
President Biden recently stated his tax plan will increase
the corporate tax rate to 28 percent. Would raising the
corporate tax rate from 21 percent to 28 percent damage U.S.
business competitiveness? \3\
---------------------------------------------------------------------------
\3\ https://www.cnn.com/2021/03/18/politics/biden-tax-plan-
explainer/index.html
Would a higher corporate tax rate slow onshoring of manufacturing
jobs?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 17. The report states ``the United States has a low-cost
electricity advantage over many of its competitors due to our Nation's
diverse sources of energy, including recent breakthroughs in shale
gas'' (pg. 8).
Do you agree breakthroughs in shale gas have improved both
the United States' energy competitiveness and brought about a
reduction in emissions as power plants have converted from coal
to natural gas?
Would a leasing moratorium, of any kind on any source of
energy, undermine energy competitiveness?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 18. The report also states ``in energy, we need an `all-
in' strategy that harnesses our natural resource advantage and our gift
for innovation. . .'' (pg. 9).
Do you agree with this statement? If so, why? If not, why
not?
If confirmed, will you commit to continue to harness our
natural resource advantage?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 19. The ``Play to Win'' recommendations focus on enhancing
U.S. competitiveness (pg. 9). Do you agree with the following policies
recommended? If so, please explain why, and if not, why not.
``we need to cut corporate taxes'' (pg. 9).
``we need to . . . broaden the [tax] base'' (pg. 9).
``we need to . . . improve the competitiveness of our tax
code'' (pg. 9).
``we need to emphasize smart and efficient regulation that
protects people and the environment while unleashing economic
growth'' (pg. 9).
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 20. The report states ``worker training is not tied
closely to employer needs'' (pg. 11) and ``we know that workforce
training that focuses on a particular industry and that provides
longer-term training yields better outcomes, especially for low-income
adults'' (pg. 14).
Do you support a tax credit to encourage individuals and
businesses to donate to nonprofit scholarships for elementary,
secondary, and vocational education opportunities? If not, why
not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 21. The report's education chapter also states ``today,
only one-quarter of America's 52 million K-12 students are performing
on par with the average performance of the best five school systems in
the world. . .'' (pg. 12).
To what degree are public schools responsible for this
problem?
Do you agree allowing families to escape underperforming
schools and instead choose to send their students to schools
where they can receive a quality education would improve
educational achievement?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 22. The report states ``every day, about 7,000 students
drop out of school'' and notes that ``all of [the dropouts] are less
likely to succeed in the workplace'' (pg. 16). This is a tragedy and a
failure of the public education system.
Studies suggest there may be an additional 1 million high-
school dropouts in the U.S. by fall 2021 if schools do not
resume in-classroom instruction soon.\4\ Teachers Unions have
repeatedly opposed full reopening and refute scientific
evidence (and CDC guidelines)\5\ that conclude in-person
schooling is safe. Do you agree with the scientific consensus
that schools should be reopened for full-time in-person
instruction?
---------------------------------------------------------------------------
\4\ https://www.statista.com/statistics/1197422/estimated-number-
high-school-dropouts-covid-19-scenario-us/
\5\ https://reason.com/2021/03/19/everybody-except-teachers-unions-
loves-the-cdcs-revised-school-distancing-guidelines/
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
---------------------------------------------------------------------------
reports.
Question 23. The report states ``we therefore need a competitive
tax policy that incentivizes companies to locate their R&D, production
and employment in the United States'' (pg. 23). Do you agree with this
statement? If so, please explain how you reconcile your agreement with
President Biden's desire to hike corporate taxes. If you do not, please
explain why not.
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 24. The report also mentions the need to ``guarantee
private-sector inventors the fruits of their invention'' (pg. 23).
If confirmed, how would you protect U.S. inventor's
intellectual property from economic espionage?
If confirmed, how would you support the commercialization of
new frontiers? Specifically of space?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 25. The report calls the cost of a college degree
``outsized'' (pg. 25).
Is the cost of higher education too high?
If so, to what degree is the capitalization of Federal
dollars (Pell grants, Federal Student Aid, etc.) into the price
of education responsible for the high price of higher
education?
What impact does a unionized workforce have on:
Workforce bloat in higher education?
The increased cost of higher education?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 26. The energy chapter of the report notes ``our nation
has an abundant supply of natural resources, and recent innovations in
drilling have unlocked a century's worth of natural gas supply and
enormously increased the production of unconventional oil'' (pg. 28).
Do you support taking advantage of the ``abundant supply of
natural resources?''
Should the Federal government continue to reap the benefits
of ``a century's worth of natural gas supply'' made possible by
technological innovation?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 27. Do you agree with the following excerpt: ``continuing
to deliver inexpensive and reliable energy is going to require the
United States to optimize all of its natural resources and construct
pathways (pipelines, transmission and distribution) to deliver
electricity and fuel'' (pg. 29)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 28. Do you agree with the following excerpt: ``The Council
recognizes the important safety and environmental concerns surrounding
[pipeline, transmission, and distribution projects], but now more than
ever, the jobs and economic and energy security benefits of these
energy projects require us to tackle the issues head-on'' (pg. 29)? Why
or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 29. Do you agree with the following excerpt: ``. . .
expeditiously, though cautiously, move forward on projects that can
support hundreds of thousands of jobs'' (pg. 29)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 30. Do you agree with the following excerpt: ``. . .
regulatory and permitting obstacles that could threaten the development
of some energy projects negatively impact jobs and weaken our energy
infrastructure need to be addressed'' (pg. 29)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 31. Do you agree with the following excerpt: ``[coal, oil,
natural gas, wind, solar, geothermal, uranium, and hydro] resources
combined with technological advances presents an opportunity to develop
a broad mix of fuel supplies, reduce emissions and help limit fuel
price fluctuations'' (pg. 29)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 32. Do you agree with the following excerpt: ``while we
believe the United States . . . needs to move deliberately and cost-
effectively towards greater proportions of renewable and low carbon
forms of energy, we recognize that this will be a long-term transition
and that traditional forms of fossil energy will continue to be
important to our economy. . .'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
[Note: No question 33 was submitted.]
Question 34. Do you agree with the following excerpt: ``As a
nation, we need to take advantage of all our natural resources to spur
economic growth, create jobs and reduce the country's dependence on
foreign oil'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 35. Do you agree with the following excerpt: ``First, we
should allow more access to oil, natural gas, and coal opportunities on
Federal lands'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 36. Do you agree with the following excerpt: ``Where
sources of shale natural gas have been uncovered, federal, state and
local authorities should encourage its safe and responsible
extraction'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 37. Do you agree with the following excerpt: ``further
expanding and expediting the domestic production of fossil fuels both
offshore and onshore will reduce America's reliance on foreign oil. .
.'' (pg. 30)? Why or why not?
Do you agree the U.S. should reduce reliance on foreign oil?
Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 38. Do you agree with the following excerpt: ``policies
that encourage rapid lease development while emphasizing the highest
safety standards will ensure companies responsibly drill for natural
gas or oil and mine for coal or other our minerals in Federal areas in
a timely manner'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 39. Do you agree with the following excerpt: ``. . . the
U.S. government should make more areas available for renewable energy
development'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 40. Do you agree with the following excerpt: ``The Federal
government should also streamline the permitting process. . .'' (pg.
30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 41. Do you agree with the following excerpt: ``The Council
recognizes that providing access to more areas for drilling, mining and
renewable energy is controversial . . . we believe it's necessary to
tap America's assets in a safe and responsible manner'' (pg. 30)? Why
or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 42. Do you agree with the following excerpt:
``Additionally, policies that facilitate the safe, thoughtful and
timely development of pipeline, transmission and distribution projects
are necessary to facilitate the delivery of America's fuel and
electricity and maintain the reliability of our Nation's energy
system'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 43. Do you agree with the following excerpt: ``We must
reduce our overall energy dependence through bold and achievable
efficiency gains'' (pg. 30)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 44. Do you agree with the following excerpt: ``We can
reduce our dependence on oil . . . by promoting alternative vehicle
technologies, ranging from fully electric vehicles to hybrids to
natural gas and alternative fuels'' (pg. 31)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 45. Do you agree with the following excerpt: ``Rapidly
evolving technologies in areas like natural gas drilling, 21st-century
nuclear power, renewable energy, energy storage, coal gasification,
electric vehicles, the smart grid and carbon capture, utilization and
storage have enormous potential'' (pg. 31)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 46. Do you agree with the following statement:
``regulations correct market failures and are sometimes essential for
markets to function'' (pg. 41)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 47. Do you agree with the following statement:
``regulatory reform efforts--just like regulation itself--should
provide net benefits to society'' (pg. 41)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 48. Do you agree with the following statement:
``regulations have both costs and benefits'' (pg. 41)? Why or why not?
If yes, how does President Biden's memorandum Modernizing
Regulatory Review,\6\ which added environmental stewardship and
racial justice as cost consideration, affect the accuracy of
cost-benefit analyses?
---------------------------------------------------------------------------
\6\ https://www.federalregister.gov/documents/2021/01/26/2021-
01866/modernizing-regulatory-review
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
---------------------------------------------------------------------------
reports.
Question 49. Do you agree with the following statement:
``regulations should maximize net benefits'' (pg. 42)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 50. Do you agree with the following statement: ``no single
element of cost or benefit should predetermine the regulatory outcome''
(pg. 42)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 51. Do you agree with the following statement:
``regulatory review should account for uncertainties and changing
circumstances'' (pg. 42)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 52. Do you agree with the following statement: ``the
regulatory process should promote predictability and confidence in
government'' (pg. 42)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 53. Do you agree agencies should disclose data and costs,
as suggested on page 43 of the report?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 54. Do you support a regulatory portal, as recommended on
page 43? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 55. Do you agree the transparency behind guidance
documents needs to be improved, as recommended on page 43? Why or why
not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 56. Do you support a permitting program management office,
as recommended on page 44? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 57. Do you support a permitting ``one-stop shop,'' as
recommended on page 44? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 58. Do you agree with the following statement: ``public
confidence in government analysis is improved when it is reviewed by an
independent party'' (pg. 45)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 59. Do you agree the ``system of corporate taxation [in
2012] hurts both business competitiveness and American workers, and
cries out for reform'' (pg. 46)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
Question 60. Do you agree with the following statement: ``. . . as
a society we must commit to . . . long-run deficit reduction'' (pg.
46)? Why or why not?
Answer. The recommendations made by the Jobs Council were offered
by the citizens sitting on the panel. They were meant to represent the
views of the members and did not necessarily represent my personal
views. I would welcome a discussion in person with you about the
reports.
______
Response to Written Questions Submitted by Hon. Jerry Moran to
Don Graves
Question 1. Section 232 Tariffs
As a candidate, President Biden committed to reviewing all tariffs
put in place by the previous administration, including Section 232
national security tariffs that the Commerce Department oversees. In
early February, President Biden re-imposed Section 232 tariffs on
aluminum imports from the UAE, which President Trump removed before he
left office. As part of the proclamation re-imposing tariffs on these
imports, President Biden stated, ``I consider it is necessary and
appropriate in light of our national security interests to maintain, at
this time, the tariff treatment applied to aluminum article imports
from the United Arab Emirates.''
Is this statement representative of a belief of President
Biden's that steel and aluminum imports are harmful to the US?
Is the re-imposition of Section 232 tariffs on these
aluminum imports a sign that President Biden's administration
plans to maintain tariffs on steel and aluminum imports for the
foreseeable future?
Will you commit to me that you will take the increased input
costs for manufacturers into account when reviewing Section 232
tariffs on steel and aluminum?
Answer. The Department of Commerce is charged with confronting
unfair trade practices, whether those by China or other countries. If
confirmed, I will work with the Department to employ all relevant and
appropriate trade enforcement mechanisms to protect U.S. interests
while aggressively promoting U.S. exports that benefit American workers
and businesses, particularly our small and medium sized businesses.
In addition, if confirmed, I will support the efforts of the
Department to continue to rigorously enforce the U.S. trade laws,
including the Antidumping and Countervailing Duties (AD/CVD) laws, to
help ensure that U.S. workers, farmers and businesses are not harmed by
unfair imports from China or other countries. The Department has
expressed that it is committed to helping all U.S. companies, and that
it will work diligently to ensure U.S. companies have the market access
and proper protections provided by our trade agreements.
It is my understanding that the Biden Administration is undertaking
a review of the steel and aluminum Section 232 tariffs and that the
President has the authority to make revisions to the tariffs. While it
would be the President's prerogative, if confirmed, I will support the
efforts of the Department to provide advice and technical assistance in
that review and decision.
Question 2. NIST and Cybersecurity
NIST plays a critical role in the Federal government's
cybersecurity efforts, including through providing cybersecurity
voluntary guidance to the private sector and coordinating interagency
efforts in cybersecurity education, training, and workforce
development.
How do you plan to support NIST's role in the Federal government's
cybersecurity efforts?
Answer. The National Institute of Standards and Technology (NIST)
plays a unique role in cybersecurity by carrying out a broad range of
cybersecurity assignments. It is critical that the Federal government
do an even better job of prioritizing, coordinating, and meeting the
needs of agencies and companies.
If confirmed, I would work to help NIST tackle cybersecurity
programs in discussions with leaders in other agencies and in the
business world. And I would work to make certain that NIST has the
appropriate resources needed to get the job done.
Question 2a. What will you do to ensure NIST's cybersecurity
functions are being fully utilized, given the serious cybersecurity
challenges facing the Federal government and private sector in this
country today?
Answer. With so many cybersecurity-related challenges,
organizations simply cannot afford to manage their risks one by one or
to treat them in isolation. Cybersecurity risks must be managed at the
enterprise level and by using practical standards and guidelines. If
confirmed, I plan to help NIST to identify the most valuable and timely
tools and information to better inform enterprise risk management.
Moreover, I would make it my business to spread the word about these
solutions so that they are put into practice even more widely and with
a greater sense of urgency.
Question 2b. Would you agree that the Department of Commerce,
primarily via NIST, should take a more proactive role in encouraging
adoption of cybersecurity standards & best practices--particularly
around supply chains (last published in 2016) and digital identity
(last published in 2017)?
Answer. There is no doubt that government and the private sector
organizations alike must place a greater emphasis--and act--on
cybersecurity issues, including digital identity and supply chain
issues. If confirmed, I will work to strengthen the Department of
Commerce's role in enabling and encouraging adoption of cybersecurity
standards and best practices.
Question 3. Privacy Shield and Data Privacy
As you know, the EU-US Privacy Shield framework was invalidated
last July, placing commercial data transfers between the U.S. and our
European partners in jeopardy.
How do you think the Department should proceed in working
with our European counterparts on a new agreement to support
data transfers?
On a related note, how do you think having a Federal data
privacy standard would impact the adequacy concerns related to
data transfers with our EU partners?
Answer. It is my understanding that negotiating an enhanced Privacy
Shield and restoring stability to trans-Atlantic data flows are top
priorities for the Department of Commerce. If confirmed, I will work on
efforts to ensure negotiations continue for an enhanced Privacy Shield
that addresses the Court of Justice of the European Union (CJEU)
concerns and enables Privacy Shield to once again serve as a valid
transfer mechanism for U.S. firms to receive personal data from the EU.
Question 4. Economic Development Administration:
I am a staunch supporter of the Economic Development Administration
(EDA) within the Department of Commerce. The grant programs that EDA
administers, such as the Regional Innovation Strategies program, are
critical for supporting American innovation and promoting economic
competitiveness. However, I continue to be concerned that the vast
majority of growth within the U.S. innovation sector--90 percent by
some accounts--is occurring in only five metropolitan areas, all of
which are located on the coasts.
Do you agree that the agglomeration of the U.S. innovation
sector is a troublesome trend? And, as Deputy Secretary, how
would you ensure that EDA's programs are being used to expand
the geographic extent of the innovation economy and best
support all of our Nation's innovators?
Answer. The Economic Development Administration's investment policy
is designed to establish a foundation for sustainable job growth and
the building of durable regional economies throughout the United
States.
I have spent my career fighting to get funding for distressed
communities. If confirmed, I can also assure you the staff at EDA will
continue to assist communities across the country and not a handful of
locations.
Question 5: SolarWinds Federal Breach
On December 13, 2020, Reuters reported an alarming cyberattack
campaign organized by Russian actors had breached multiple Federal
agencies. The Department of Commerce was one of the first departments
to be identified as being breached as part of this cyberattack.
The SolarWinds compromise was as much of an attack on our economic
security as our national security--and the situation demands a swift
and deliberate response by Federal agencies to harden cyber defenses
and protect sensitive data.
What will be your plan, as Deputy Secretary, to address the need to
strengthen the Department of Commerce's internal cyber defenses?
Answer. Strong and effective cybersecurity measures are needed to
ensure that the private and public sector can rely on robust and
trustworthy systems, and an expansion and transformation of our
Nation's workforce is needed to address current and projected severe
shortages of cybersecurity-savvy workers.
If confirmed, I would support NIST's role in developing
cybersecurity and privacy standards, guidelines, best practices, and
other resources to meet the needs of U.S. industry, Federal agencies,
and the broader public essential to economic security and growth.
Question 6. COVID-19 Cybersecurity and Data Privacy
Due to the COVID-19 pandemic, a majority of Americans are working
remotely. This presents a number of challenges for the cybersecurity of
companies that have shifted to remote work, and opportunities for bad
actors to take advantage of businesses operating in an unfamiliar
posture.
Will you commit to strengthening cybersecurity workforce
capabilities to secure and defend information infrastructure?
Answer. The shift to remote work and other changes brought on by
the COVID-19 pandemic have reinforced the importance of, and need for,
strong and effective cybersecurity practices and a strengthened
cybersecurity workforce to secure and defend the Nation's information
infrastructure. If confirmed, I commit to reinforcing NIST's leadership
and efforts to bolster the Nation's cybersecurity workforce
capabilities to meet the needs of U.S. industry, Federal agencies, and
the broader public.
Question 7. Spectrum Allocation
The Department of Commerce, through NTIA, manages the use of
electromagnetic spectrum for the entire country. Vital operations of
the Federal government, ranging from National defense, to weather
forecasts, to scientific discovery all utilize electromagnetic
spectrum, and involve coordination efforts across multiple Federal
agencies and departments. At the same time, companies and industries
are finding and creating new applications that would use the same
spectrum to increase economic opportunity and productivity.
How will you balance the interests of the Federal government
activities with industries that would like to utilize the
finite resources of radio spectrum?
What role will you take as Deputy Secretary to coordinate
efforts with other Federal interests, like the Federal
Communications Commission, that will protect national interests
and also further economic growth?
Answer. NTIA is the President's principal advisor on
telecommunications and information policy matters including spectrum.
NTIA has worked over the past three decades to balance the spectrum
requirements of Federal government agencies with the need to provide
more spectrum resources for commercial network deployments.
If confirmed, I will continue to rely on NTIA as I work closely
with the White House, other Federal agencies, the Federal
Communications Commission, the commercial sector, and other
stakeholders to understand requirements and find win-win solutions for
government and industry.
______
Response to Written Questions Submitted by Hon. Marsha Blackburn to
Don Graves
Question 1. Regulatory Reform
The Department of Commerce's website states ``Accelerating the
development of new manufacturing plants and equipment, and
infrastructure improvements are fundamental to our mission. We will be
at the forefront of Federal efforts to reduce regulations and shorten
the time-frame for Federal review of projects.''
How do you plan on accelerating the deployment of infrastructure
projects in America's rural communities? Can I trust that you will cut
burdensome regulatory hurdles that impede infrastructure projects
across this nation?
Answer. If confirmed, I look forward to working with the Department
and Members of Congress to accelerate the development and deployment of
new manufacturing plants and equipment, and to support infrastructure
improvements to America's rural communities through existing and
proposed Department programs, including regulatory reform efforts
underway in response to the President's Executive Order 14005.
Question 2. Manufacturing
The biggest obstacle to bringing advanced manufacturing jobs back
to states and communities is educating new workers.
How do you plan to work with businesses, states, and local entities
to promote advanced manufacturing education?
Answer. If confirmed, I look forward to working with the Department
and members of Congress on legislation to bring back manufacturing jobs
to our states and communities. As part of that, the Commerce-led
Manufacturing USA network, including institutes sponsored by the
Departments of Commerce, Defense, and Energy, will continue to maintain
a focus on education and workforce development in advanced
manufacturing. The institutes work with U.S. manufacturers,
universities, community colleges, and K-12 schools to organize programs
both to upskill existing workers and to create a pipeline of new
skilled workers, including training and educating underrepresented
minorities, returning veterans, and underserved regions of the United
States.
Question 3. Artificial Intelligence (AI)
Artificial intelligence (AI) technology is proliferating and
important considerations are being brought to light about both the
benefits of the technology as well as the challenges.
If confirmed, how will you work with key stakeholders, U.S.
companies, & domestic experts on implementing AI standards processes?
Answer. If confirmed, I will support and strengthen the
Department's efforts in maintaining U.S. leadership in development of
Artificial intelligence (AI) standards. Specifically, I will support
and strengthen NIST's current efforts in engaging the research
community to strengthen the needed scientific foundation for
development of technically sound standards; work with entities in the
public and private sector in building institutional capacity to
understand and engage in standardization processes; and most
importantly, actively participate and lead development of technical
standards for trustworthy AI.
Question 4. China
Trade talks with China will be continuing under the new
administration.
Do you support the current round of Tariffs? If so, do you
plan to make changes to the exemption process?
How do you plan to confront Chinese attempts to steal
intellectual property?
Answer. If confirmed, I will work with Secretary Raimondo to ensure
the Department continues to apply appropriate measures to counter anti-
competitive behavior by China that hurts American workers and
companies. It is my understanding that the Department is continually
reviewing the process and scope of the 232 Exclusions Process to
increase its efficiency and transparency. Regarding intellectual
property, if confirmed, I will work to ensure that the Department will
continue to recognize protection and enforcement of U.S. intellectual
property rights as a trade policy priority.
Question 5. Semiconductors
China has targeted 5G and advanced telecommunications
infrastructure equipment as key part of its global strategy, and the
tactics the Chinese government adopted have disrupted key global supply
chains in the information communications technology sector--including
semiconductor manufacturing.
What tools are available to Commerce prevent further
disruptions in these markets?
Furthermore, what can the Department of Commerce do to
prevent deployment of Chinese components, particularly optical
transmission components, in our communications networks?
Answer. It is my understanding that the Biden Administration is
undertaking a comprehensive review of U.S. trade policy towards China
as part of its overall China strategy and is committed to using all
available tools to counter the range of China's unfair trade practices.
The Department, through NIST, ITA, BIS, NTIA, and USPTO, has a broad
array of tools that can be deployed to ensure the United States is
positioned to outcompete China in key areas of research and
development, strengthen U.S. engagement in standards development for
emerging technologies, partner with U.S. allies, and protect U.S.
intellectual property globally. If confirmed, I look forward to helping
advance these important efforts.
Question 6. Through the NDAA, Congress took steps to support the
on-shoring of the semiconductor industry; this included a R&D
investment, public-private partnerships, and notably a grant program
for the construction and expansion of manufacturing facilities. Given
the critical importance of this industry and the chip shortages abound,
how do you envision this Commerce Department-led grant program working?
Answer. If confirmed, I look forward to working across the
Department and with the White House and Congress to fully implement the
programs authorized in the Fiscal Year 2021 National Defense
Authorization Act (NDAA). The goal of these programs is to regain U.S.
semiconductor technology and R&D leadership, increase market share in
bleeding-edge logic fabrication, and maintain market share in overall
fabrication capacity, including older-generation logic and memory
chips.
If fully funded, the Department will provide grants as authorized
in the NDAA to support the construction of new fabrication facilities,
including those at the leading edge (7nm and 5nm nodes) as well as
expanding capacity at fabs producing memory chips, as well as older
generation plants to ensure the U.S. retains its current 12 percent
share of global fab capacity. In addition to the incentives for fab
construction, if fully funded, the Department will work with the
Department of Defense to establish a National Semiconductor Technology
Center that would be a public private partnership that invests in new
metrology, advanced packaging, worker training, and R&D investments to
test and validate the next generation of design and production
technology.
Question 7. Blockchain
If confirmed, how would you support a national strategy for
blockchain technology to spur growth of American businesses?
Answer. If confirmed, I look forward to working with NIST to
explore options for a national strategy for blockchain technology and
ensure that economic security and the needs of American businesses are
reflected.
______
Response to Written Questions Submitted by Hon. Mike Lee to
Don Graves
Question 1. As Deputy Secretary of Commerce, you will have an
important role in managing the National Telecommunications and
Information Administration (NTIA), which manages spectrum assignments
among Federal government users.
Do you think Federal agencies currently use their spectrum
efficiently?
Should government agencies be immune from oversight of their
use of the electromagnetic spectrum?
I think Congress and Executive Branch agencies need the best
available data to identify inefficiencies in both the
Commercial and Government contexts. Will you support my
legislation, the Government Spectrum Valuation Act, which would
require NTIA to calculate the value or the ``opportunity
costs'' associated with Federal spectrum so that we can make
more informed decisions?
Answer. Federal agencies must use spectrum, which is a limited
national resource, both efficiently and effectively in order to meet
the missions and mandates that Congress has enacted--ranging from
national defense and homeland security to law enforcement,
transportation safety, space exploration and many others.
Efficient and effective government use of spectrum can allow
additional spectrum to be shared with, or otherwise repurposed, for the
kinds of advanced commercial wireless services that have spurred
economic growth and technological innovation over the past three
decades. If confirmed, I will work with NTIA as it coordinates the
efforts among the Federal agencies, and with the Federal Communications
Commission (FCC) to continue making spectrum available without
compromising the government operations that protect our economic and
national security.
Question 2. Should NTIA or a Federal agency be able to ``veto'' an
FCC decision to license a band for a commercial purpose, even after
those Federal agencies have been able to weigh in on the FCC's review?
How would you handle disputes with the FCC over the
licensing of a band for a commercial purpose?
In making spectrum determinations, should NTIA defer to a
Federal agency's spectrum findings or should NTIA make their
own independent, scientific judgments?
In your opinion, is the current FCC/NTIA Memorandum of
Understanding sufficient to govern interagency spectrum
decision-making?
Answer. Under the Communications Act, the FCC has the authority to
license and regulate non-Federal uses of spectrum. So, the Executive
Branch, including the NTIA, does not have authority to veto an FCC
decision to allocate or license commercial services in a band. However,
the Communications Act does give the Executive Branch authority to
assign and manage spectrum allocated for use by Federal government
agencies. In the national interest, NTIA does express the views of the
Executive Branch and the Federal agencies in FCC proceedings where
Commission actions could affect spectrum-dependent Federal operations.
If confirmed, I believe that the existing processes, if followed in
good faith by the FCC and Federal agencies, can be used to lessen the
need for escalating adjudications or for public disagreements over FCC
decisions.
Question 3. Can you commit, as Secretary Raimondo did during her
hearing, that you will oppose efforts to authorize or promote a
nationalized 5G network?
Answer. Yes, I can commit to opposing efforts to authorize or
promote a nationalized 5G network, as Secretary Raimondo has stated
during her confirmation hearing.
I do not support or promote the idea of a nationalized 5G network.
The private sector has developed and deployed wireless networks,
including those based on 5G that make the U.S. the world leader in
global wireless technology and services. Existing law and policy
prevent agencies from competing with U.S. industry and I support
maintaining these policies.
Question 4. Do you agree that China poses both economic and
security threats to the United States?
Why has China had such success attracting U.S. businesses--
particularly U.S. manufacturing? And what recommendations will
you make to revive U.S. manufacturing?
We know U.S. manufacturing costs are generally higher than
China as well as other Asian markets. What contributes to these
costs? Do U.S. regulations? Do U.S. labor costs? Are there
areas of our domestic laws that make the United States an
unattractive market for manufacturing?
Answer. I look forward to working with the Department and members
of Congress on legislation to enact the President's campaign promise to
Build Back Better, and in so doing improve our Nation's global
competitiveness. As part of that, the NIST MEP National Network of
Centers will continue to focus on helping small and medium
manufacturers grow and compete by adopting new technology and processes
to innovate products and improve productivity. In parallel, the
Manufacturing USA program will continue to connect people and ideas to
develop new technologies and solve industry-related advanced
manufacturing challenges. These actions will contribute to reviving
U.S. manufacturing and attracting U.S. manufacturers to expand
operations domestically instead of in China or other nations.
With respect to your second question, there are U.S. costs that can
increase production costs such as labor and services relative to lower
wage nations. NIST MEP and NIST help manufacturers identify
opportunities to reduce these costs and maintain key regulation
compliance through a combination of adopting best practices and
adopting the latest innovative technologies.
Question 5. Article 1, Section 8 of the Constitution clearly gives
Congress the authority to ``lay and collect taxes, duties, imposts and
excises'' and ``to regulate commerce with foreign nations.'' How do you
view Congress' role in levying tariffs and duties on trade, and would
you support Congress exercising increased control over the approval
process for such measures?
When should tariffs be imposed? And how do you weigh the
costs of increasing such a trade barrier as opposed to the
benefits of free trade?
Do you agree that any broad-based increase in U.S. tariffs
tend to have the biggest negative impact on low-income American
households, which spend a larger share of their budgets on
imported shoes, clothing, food, and household goods?
Answer. I share President Biden's and Secretary Raimondo's
commitment to international trade that benefits all Americans and that
creates high paying jobs here in the United States. If confirmed, I
commit to working with Congress on tariffs and other trade issues to
create a more prosperous America where the benefits of trade are shared
equally by all Americans.
Question 6. One of President Biden's first executive actions was to
reverse President Trump's July memorandum ordering the U.S. Census
Bureau to exclude illegal aliens from the census count. Recently, the
Supreme Court declined to decide the case because it was not ripe.
During oral arguments, it was admitted that the Census Bureau at the
time did not know whether the number of illegal aliens would affect
apportionment. Do you support President Biden's decision?
If the illegal alien population of a particular state was
sufficient enough to affect apportionment, would you at all be
concerned that this illegal activity could benefit certain
states with additional representation in the House of
Representatives over others?
Do the American people deserve an answer as to whether the
illegal alien population affects the proportion of members in
the U.S. House of Representatives?
Answer. Like Secretary Raimondo, if confirmed, I would support the
President's Order on this topic and believe that the 2020 Census should
count everyone. I agree that reapportionment be consistent with the
Constitution and based on the total number of persons residing in the
several states, without regard for immigration status. I also believe
that it is essential that the 2020 Census count must be accurate and
based on as reliable high-quality data as possible.
Question 7. States oftentimes use Federal money only for simple
projects, for compliance reasons, and they tend to use their own funds
for difficult, complex projects because the regulatory burden that
comes with Federal requirements can raise the cost of the project by 20
percent. This is especially challenging in my home state of Utah where
most of Utah's land is owned by the Federal government. As governor,
you appeared to champion cutting red tape and slashing regulations that
were getting in the way of private entrepreneurship and innovation. How
would you bring this deregulatory philosophy to the Department of
Commerce?
Can you identify any regulations or areas of policymaking at
the Department you would like to see reduced?
Answer. If confirmed, I plan to take a comprehensive look at the
Department's rulemaking process and would welcome a further discussion
on this issue.
Question 8. The Biden Administration has announced it is conducting
a comprehensive agency-wide review of the U.S. supply chain for
critical sectors. The review is largely focused on the U.S./China
bilateral relationship. What guidance will you offer to Secretary
Raimondo and President Biden on how this comprehensive review should
inform the current review periods of the International Trade Commission
(ITC)? And what metrics will guide you in determining whether to extend
or maintain an existing ITC review period?
Answer. If confirmed, I look forward to reviewing further President
Biden's Executive Order on America's Supply Chains. It is my
understanding that the Secretary of Commerce is assigned lead
responsibility for the report identifying risks in the semiconductor
manufacturing and advanced packaging supply chains.
If confirmed, I plan to take a comprehensive look at the
Department's ongoing work on this subject and would welcome a further
discussion on this issue.
______
Response to Written Questions Submitted by Hon. Rick Scott to
Don Graves
Question 1. Communist China continues to openly flout U.S. laws and
refuse to hold up their ends of trade deals with the United States.
They are dead-set on being the dominant world power, and can't be
trusted to play fair. Every single U.S. dollar spent in China supports
a regime that jails its people for religious beliefs and denies basic
human rights to its citizens.
What is your plan to ensure that U.S. citizens and taxpayer
dollars are protected from Communist China, and how do you plan
to hold them accountable in any future trade commitments?
Answer. China's aggressive, anticompetitive, and coercive trade
policies hurt American workers and businesses. Holding China
accountable in future trade commitments and ensuring that U.S. workers
and firms benefit from trade agreements signed with other countries
require a whole-of-government approach, in partnership with the U.S.
Trade Representative, the Department of State, and other U.S.
government agencies. If confirmed, I will work diligently to ensure
U.S. exporters have the market access and proper protections provided
by our trade agreements.
Question 2. I've been fighting to protect American national
security and intellectual property by preventing the U.S. government
from purchasing technology, like drones, with American tax dollars. I
was glad to see the Department of Commerce add Chinese drone company,
DJI, to the Entity List because of national security concerns. And
earlier this year, former President Trump issued an EO directing U.S.
agencies to prioritize removing Chinese-made drones from our
government's fleets due to security risks. I also recently introduced
the Entity List Verification Act (S. 568) which requires the Secretary
of Commerce to provide certification to Congress that an entity is not
a national security risk before it is removed from the Entity List.
Can you confirm that you intend to keep DJI on the Entity
List?
What further action can the Department of Commerce take
against companies like DJI, and any other Chinese-based
company, that pose such obvious national security threats?
Answer. The United States is engaged in strategic competition with
China, and technology is a central domain of that competition. We
should have no illusions about China's objectives, which I believe are
to undercut America's longstanding technological advantage and to
displace America as the global leader in cutting-edge research and
development and the industries of the future. The national security and
economic consequences of allowing that to happen are simply
unacceptable. That is the bottom-line perspective I will bring to this
role, if confirmed.
With respect to the Entity List, I understand that parties are
placed on the Entity List and the Military End User List generally
because they pose a risk to U.S. national security or foreign policy
interests. I currently have no reason to believe that entities on those
lists should not be there. If confirmed, I look forward to a briefing
on these entities and others of concern. I further understand that the
Department has an ongoing process in place to identify and review
activities of the Chinese government as well as commercial entities and
their affiliates to determine whether placement of additional entities
on the Entity List and/or the Military End User List is warranted. I
understand that this is an interagency process. If confirmed, I will
support the Secretary's efforts to encourage the use of the Entity
List, the Military End User List, and other appropriate tools within
the scope of Commerce authorities to protect U.S. national security and
foreign policy interests.
Question 3. Our nation is competing against known adversaries like
Communist China and Russia in the space launch industry, and we must
put American interests and national security first. I co-sponsored the
American Space Commerce Act to bolster the domestic space industry and
to ensure the U.S. remains a leader in space exploration. What is your
plan to continue growing the domestic space industry?
Answer. The Department and the Administration have a role to play
in supporting the domestic space industry, while ensuring safe and
productive development in this shared domain. If confirmed, I look
forward to working with you as you develop legislation in this
important area and to communicating the Department's recommendations on
areas of mutual interest and concern.
Question 4. One of the main roles of the Department of Commerce is
to promote job creation and economic growth, but the Biden
Administration has called for a new national minimum wage of $15 an
hour. Reports indicate this mandate would cost as many as 1.4 million
Americans their jobs. Small businesses in America are struggling like
never before--especially in liberal states where repeated lockdowns
have left them fighting to stay open. They're competing against big-box
stores that are experiencing record sales. It is disappointing that
President Biden seems to believe now is the time to create another
mandate on their back and drive even more Americans chasing the dream
of this country out of business.
Can you explain your view of a federally-mandated $15
minimum wage, and if implemented, how you'd work to mitigate
the effects on small businesses, so they can afford to keep
their doors open?
Answer. As I noted at my confirmation hearing, if confirmed, I
would follow the lead of President Biden in this area. I believe that
an increase in the minimum wage would bring millions of people out of
poverty and help grow further prosperity.
Question 5. I'm proud to be the Ranking Member of the tourism,
trade, and export promotion subcommittee alongside my colleague,
Senator Rosen. The travel and tourism industry is an important role in
interstate commerce and the U.S. economy, especially in my state of
Florida, and I'm extremely concerned about the effects that COVID has
placed on this industry and the jobs that depend on it.
What is your recovery plan for the travel and tourism
industry?
Answer. The travel and tourism industry has been disproportionally
affected by the COVID-19 restrictions on travel that have been put in
place to provide for public health. The Department of Commerce plays a
leading role with respect to this sector. If confirmed, I will work
with the National Travel and Tourism Office and the Commercial Service
(both in the International Trade Administration), the Economic
Development Administration, and public health authorities to help the
industry recover.
The Secretary of Commerce chairs the Tourism Policy Council, an
interagency council whose purpose is to coordinate policies and
programs to support the sector. Secretary Raimondo has expressed her
commitment to actively supporting the recovery of travel and tourism
and, if confirmed, I will support her in those efforts.
Question 6. In 2019, the Department of Commerce finalized a
Suspension Agreement on Fresh Tomatoes from Mexico, which according to
the Department, ``completely eliminates the injurious effects of
unfairly priced Mexican tomatoes'' and ``protects U.S. tomato producers
from unfair trade.''
However, it is my understanding that there is a growing list of
violations of the Agreement by Mexican tomato producers and their
importer partners in the U.S., and that, to date, the Department of
Commerce has taken no disciplinary action against those violators. This
inaction will only embolden the Mexican tomato industry to ignore the
terms of the Tomato Suspension Agreement, and violations will quickly
grow to the point where the Suspension Agreement is useless in
preventing injury to the U.S. tomato industry.
Will the Biden Administration enforce U.S. unfair trade laws
aggressively, so they will be effective in remedying the injury
caused to U.S. companies, workers and farmers by unfairly
traded imports?
Under the Biden Administration, will the Commerce Department
take immediate action to stop violations of the Tomato
Suspension Agreement?
Answer. I understand that the Department of Commerce's Enforcement
& Compliance unit is vigorously enforcing and monitoring the 2019
Suspension Agreement on Fresh Tomatoes from Mexico. It is also my
understanding that this agreement contains unprecedented tools for
enforcing the agreement, including inspections by the U.S. Department
of Agriculture for quality and condition defects of certain tomato
types near the border after entering the United States and the ability
to perform special audits of up to 40 Mexican signatories and up to 40
selling agents each quarter.
I can assure you that, if confirmed, I will ensure that the
Department continues its rigorous enforcement of this agreement,
including fully examining alleged non-compliance and possible
violations, as well as by consulting closely with USDA, its Perishable
Agricultural Commodities Act division, and U.S. Customs and Border
Protection, as appropriate.
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