[Senate Hearing 112-248]
[From the U.S. Government Publishing Office]
S. Hrg. 112-248
NOMINATIONS OF JOHN BRYSON
AND TERRY GARCIA TO THE
U.S. DEPARTMENT OF COMMERCE
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED TWELFTH CONGRESS
FIRST SESSION
__________
JUNE 21, 2011
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
_____
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED TWELFTH CONGRESS
FIRST SESSION
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas,
JOHN F. KERRY, Massachusetts Ranking
BARBARA BOXER, California OLYMPIA J. SNOWE, Maine
BILL NELSON, Florida JIM DeMINT, South Carolina
MARIA CANTWELL, Washington JOHN THUNE, South Dakota
FRANK R. LAUTENBERG, New Jersey ROGER F. WICKER, Mississippi
MARK PRYOR, Arkansas JOHNNY ISAKSON, Georgia
CLAIRE McCASKILL, Missouri ROY BLUNT, Missouri
AMY KLOBUCHAR, Minnesota JOHN BOOZMAN, Arkansas
TOM UDALL, New Mexico PATRICK J. TOOMEY, Pennsylvania
MARK WARNER, Virginia MARCO RUBIO, Florida
MARK BEGICH, Alaska KELLY AYOTTE, New Hampshire
DEAN HELLER, Nevada
Ellen L. Doneski, Staff Director
James Reid, Deputy Staff Director
Bruce H. Andrews, General Counsel
Brian M. Hendricks, Republican Staff Director and General Counsel
Todd Bertoson, Republican Deputy Staff Director
Rebecca Seidel, Republican Chief Counsel
C O N T E N T S
----------
Page
Hearing held on June 21, 2011.................................... 1
Statement of Senator Rockefeller................................. 1
Statement of Senator Hutchison................................... 2
Statement of Senator Lautenberg.................................. 4
Statement of Senator Boxer....................................... 6
Prepared statement........................................... 8
Editorial dated June 21, 2011 from the Los Angeles Times
entitled ``Commerce Department nominee deserves the job''.. 8
Statement of Senator Kerry....................................... 9
Letter dated June 16, 2011 to Hon. John D. Rockefeller IV
from Members of Congress John F. Tierney and Barney Frank.. 9
Prepared statement........................................... 13
Statement of Senator Isakson..................................... 15
Statement of Senator Toomey...................................... 16
Statement of Senator Blunt....................................... 16
Statement of Senator Klobuchar................................... 17
Statement of Senator DeMint...................................... 19
Statement of Senator Snowe....................................... 20
Statement of Senator Begich...................................... 21
Statement of Senator Pryor....................................... 22
Statement of Senator Warner...................................... 22
Statement of Senator Boozman..................................... 23
Statement of Senator Thune....................................... 23
Statement of Senator Rubio....................................... 24
Witnesses
Hon. Dianne Feinstein, U.S. Senator from California.............. 5
John Bryson, Secretary of Commerce-Designate, Department of
Commerce....................................................... 25
Prepared statement........................................... 27
Biographical information..................................... 30
Terry Garcia, Deputy Secretary of Commerce-Designate, Department
of Commerce.................................................... 39
Prepared statement........................................... 41
Biographical information..................................... 43
Appendix
Response to written questions submitted to John Bryson by:
Hon. John D. Rockefeller IV.................................. 67
Hon. Daniel K. Inouye........................................ 68
Hon. John F. Kerry........................................... 69
Hon. Maria Cantwell.......................................... 70
Hon. Frank R. Lautenberg..................................... 72
Hon. Mark Pryor.............................................. 73
Hon. Claire McCaskill........................................ 75
Hon. Tom Udall............................................... 76
Hon. Mark Warner............................................. 79
Hon. Mark Begich............................................. 81
Hon. Olympia J. Snowe........................................ 82
Hon. Jim DeMint.............................................. 86
Hon. Roger F. Wicker......................................... 88
Hon. Johnny Isakson.......................................... 90
Hon. Patrick J. Toomey....................................... 90
Hon. Marco Rubio............................................. 92
Hon. Kelly Ayotte............................................ 95
Response to written questions submitted to Terry Garcia by:
Hon. John D. Rockefeller IV.................................. 97
Hon. Maria Cantwell.......................................... 98
Hon. Tom Udall............................................... 98
Hon. Olympia J. Snowe........................................ 98
Hon. Roger F. Wicker......................................... 100
Hon. Marco Rubio............................................. 100
NOMINATIONS OF JOHN BRYSON
AND TERRY GARCIA TO THE
U.S. DEPARTMENT OF COMMERCE
----------
TUESDAY, JUNE 21, 2011
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 2:38 p.m. in room
SR-253, Russell Senate Office Building, Hon. John D.
Rockefeller IV, Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. JOHN D. ROCKEFELLER IV,
U.S. SENATOR FROM WEST VIRGINIA
The Chairman. I would like to call this nominations hearing
to order.
Senator Feinstein, I realize that you and Senator Boxer
want to introduce, but there may be others who want to give
opening statements.
So we have two distinguished people this afternoon before
us, and the first is John Bryson of California. Mr. Bryson is
nominated to be the next Secretary of Commerce. Our second
nominee, Terry Garcia, is of Florida. He is nominated to be
Deputy Secretary of the Department of Commerce. That sounds
like number one and number two.
Much of the conversation today is going to focus on Mr.
Bryson, who has a varied and very impressive resume, and a
background running an extremely large utility company in
California for a very long time. That background, to me, is
more important than ever.
But on the other hand, some have raised concerns about Mr.
Bryson's experience as a founding member of an environmental
organization that has, at times, used very aggressive tactics,
including suing Mr. Bryson and his company, and then also
having policies that don't necessarily comport with some views
held by others on the Committee.
Others have raised concerns about his support for a 2009
proposal to cap emissions, which was a position widely held in
the utility industry. That's an important sense, that it was
widely held in the utility industry. But it was a bill that I
opposed.
That said, I need to tell you that I had a very productive
and positive meeting with Mr. Bryson last week when he visited
my office, and I have great respect for his desire to serve our
country. But along with that, I have enormous faith in his
creative ability through his executive experience to find ways
to stimulate manufacturing--which this Committee is dedicating
itself to for the rest of the year and next--and that he has
the kind of ability to create jobs in America. It's an issue
which we all talk about and not much happens about it.
The nominations of Mr. Bryson and Mr. Garcia come at an
incredible crossroads for the country and for the Commerce
Department. High unemployment, a slow recovery, the Commerce
Secretary and Deputy Secretary play an enormous role in
supporting jobs and our economy. If confirmed, they would face
a very steep challenge.
I have long fought for a stronger manufacturing sector in
this country. Manufacturing has been hit hard over the last
decade--losing, as everybody knows, nearly one-third of its
workforce--and the Government's response has been piecemeal to
tepid.
This needs to change. The Secretary of Commerce and Deputy
Secretary can have a lot to do with that.
If in the next decade, things are as bad for manufacturing
jobs as the previous decade, we will have little left in that
sector to save. Time is running out on us quickly. This, in
turn, has grave national security implications and could
cripple our ability to out-innovate and out-compete other
countries.
This Committee held two hearings on this issue this year.
Next week, I'm holding a full Committee field hearing in West
Virginia on exporting products made in America. I'm also going
to introduce a slew of bills in the next number of days, which
are on point, I believe.
For the foreseeable future, I intend to use this Committee
to find ways to make manufacturing a spark in our job-creating
agenda.
Finally, Commerce is responsible for much more than
promoting American business. For example, almost two-thirds of
our department's budget is dedicated to NOAA, the National
Oceanic and Atmospheric Administration. And I want to hear
about Mr. Bryson's views and Mr. Garcia's views on the
Administration's reorganization proposal. They are not
necessarily leaving NOAA alone, I think to a great disadvantage
of our country. NOAA's weather satellites, I want to talk about
that, and the Department's cybersecurity efforts.
In any event, I look forward to hearing from both our
nominees today.
STATEMENT OF HON. KAY BAILEY HUTCHISON,
U.S. SENATOR FROM TEXAS
Senator Hutchison. Mr. Chairman, we have before us today
the two most senior positions with the Department of Commerce,
which is tasked with promoting business, creating jobs, and
spurring economic growth. While this has always been important,
it is most essential now, with an unemployment rate at 9.1
percent.
The Administration has talked a great deal about job
creation and the need for regulatory reform. But respectfully,
the record has not matched the rhetoric. Since taking office,
President Obama has grown the size of the federal regulatory
workforce by more than 16 percent, by some estimates.
There are now more than 275,000 federal employees whose
entire focus is adding to the ever-expanding regulatory burden
of America's job creators. So while there has been talk about
streamlining regulation, we see the Federal Register come on
schedule every day with even more proposed rules for innovators
and job creators to negotiate.
Mr. Chairman, this much is certain: We are not going to tax
or regulate our way out of the economic downturn. So I will
want to know about Mr. Bryson's business experience in a highly
regulated market, and, as I have mentioned to him, his comments
that seem to favor expanded regulation of the energy sector.
This economy is in need of a jumpstart, and I believe
having a Cabinet official committed to economic expansion,
trade promotion, and other policies that strengthen America's
competitiveness is an essential part of that.
So I will look forward to hearing Mr. Bryson tell the
Committee some of his priorities in this area.
I do have concerns with some of the statements he has made
about cap-and-trade legislation and the use of regulation as an
instrument to reduce what he apparently believes is an
overproduction of energy, to thereby reduce greenhouse gas
emissions. Given the state of our economy and the anemic job
growth we have seen, I believe the question of whether Mr.
Bryson will promote regulatory reform to eliminate the excess,
as President Obama has promised, will be part of what I would
like to ask of him.
I also will be asking the nominees their thoughts on tax
reform. The United States currently has the second highest
corporate tax rate in the world behind Japan, which has said
that it will lower its rate, ultimately leaving the United
States with the dubious distinction of having the highest tax
rate in the world.
So I would be interested in making sure that we have a
voice in the Cabinet that will encourage the President to lower
the tax and regulatory burdens that would jumpstart job
creation and restore America's global competitiveness. I think
the Secretary of Commerce is a bully pulpit, the ability to be
a cheerleader for trade and commerce and promoting job
creation. And I hope that is what Mr. Bryson will also be able
to embrace.
So with that, Mr. Chairman, I thank you for having this
hearing and look forward to hearing from the witnesses and
moving forward. Thank you.
The Chairman. Thank you, Senator Hutchison.
It is the Chair's wish that any member who wishes to make a
statement of about 3 minutes--and I apologize, Senator
Feinstein, to you--is free to do so.
Senator Lautenberg. Mr. Chairman, are we doing that in
arrival order?
The Chairman. You know what, I don't have--oh, yes, I do
have arrivals, which happens to be a Senator Lautenberg.
[Laughter.]
Senator Lautenberg. I didn't mean to interfere.
The Chairman. Did you camp out the night before?
[Laughter.]
Senator Lautenberg. I was here.
The Chairman. OK.
STATEMENT OF HON. FRANK R. LAUTENBERG,
U.S. SENATOR FROM NEW JERSEY
Senator Lautenberg. Thanks very much, Mr. Chairman.
And we have a distinguished colleague at the desk, and I
don't want to take too much time. But I've got to say, we are
so lucky to have someone with the qualifications that John
Bryson and Terry Garcia bring to these positions.
I met with Mr. Bryson last week and we have things in
common. In addition to being very proud fathers, we're both
former CEOs while we care about the environment and the well-
being of our children.
So in order to try and meet the short time deadline, I
introduce a letter from the Business Roundtable that was sent
June 21. And they write, John Engler, who's the President, I
believe, of the organization--anyway, he says here that John
Bryson's extensive experience in the private sector has well-
equipped him to take on the many issues the department must
address to support the U.S. economy and job creation, issues
like technology, innovation, intellectual property, and trade.
And they remind us that the Business Roundtable is an
association of chief executive officers of leading U.S.
companies with nearly $6 trillion in annual revenues and more
than 13 million employees.
It's hard to find something better than that, and also the
fact that he's cared about the environment is deserving of
credibility and support.
So, Mr. Chairman, I thank you for doing this, and as I look
at Mr. Bryson's background--18 years chairman and CEO of Edison
International, delivers power to nearly 14 million
Californians, holds the distinction of being our country's top
buyer of renewable energy.
Friends, we're lucky to get someone like this who wants to
sit in here and do the job that they have to do, sacrifice lots
of things in the outside world. And we ought to just move on
this thing and stop the obstructionism that so often invades a
review of a person's qualifications, without looking at the
qualification.
And with that, Mr. Chairman, I proudly beat the 3-minute
deadline.
The Chairman. You did, and I hope in your next go-round,
you'll make your views more clear.
[Laughter.]
The Chairman. With the permission of the Committee, I'm
going to ask that Senator Feinstein be able to go ahead and
introduce John Bryson, and then we will return to our----
Senator Boxer. The understanding was I would also. I would
have been sitting down there but for the fact that----
The Chairman. Go sit. Do you want to do it from here or
there?
Senator Boxer. Here.
The Chairman. That's fine.
Senator Boxer. Yes, but I would like to follow my friend.
The Chairman. And that will happen.
Senator Feinstein?
STATEMENT OF HON. DIANNE FEINSTEIN,
U.S. SENATOR FROM CALIFORNIA
Senator Feinstein. Thank you very much, Mr. Chairman.
I appreciate this because, as you well know, I chair
Intelligence and we're meeting now. And I see members of the
Intelligence Committee here, so I know they're not playing
hooky, but it's good to be here.
I have the distinct pleasure today to introduce to the
Committee John Bryson, a former chairman, CEO, and president of
Edison International, and most importantly to Senator Boxer and
myself, a Californian.
On May 31, John was nominated by President Obama to serve
as the 37th Secretary of Commerce.
I believe that he is enormously well-suited for this
important role, particularly at a time when our economy remains
fragile and job creation isn't occurring fast enough. John's
experience running a multibillion dollar company, a very large
utility, his success as a strong advocate for business, and his
readiness to advance a jobs agenda make him a strong and
positive fit for Commerce Secretary.
I first got to know John when he was CEO of Edison
International. That's the parent company of Southern California
Edison, which provides power to 14 million Californians and
nearly 300,000 businesses.
As the Committee will recall, in 2000 and 2001, California
was gripped by an energy crisis that resulted in rolling
blackouts that left millions of Californians in the dark.
During that difficult time, John's company was under siege. I
watched closely as he successfully fended off financial
disaster, even as other California utilities were not so
fortunate.
I met and spoke with John Bryson often during that energy
crisis and remember well his intelligence and pragmatism as
utilities, state officials, and Washington worked their way
through the crisis. In my observation, he worked hard for the
people of California, his shareholders, and the many businesses
that relied on a stable power grid.
I believe John will carry the same thoughtful, sensible
leadership style with him to the Commerce Department.
And during his years at Edison International, John's
leadership of this very large utility was strong and effective.
I want to give you an example.
My colleague Senator Boxer knows that I had worked on a
utilities cap-and-trade bill. Well, Edison International,
headquartered in Southern California, at this time owned a
portfolio that was 40 percent coal. As a result, he did not
join in support for this legislation. As a result of this also,
he had diversified the investment portfolio of that great
utility.
Now, why do I tell you this? I tell you this to demonstrate
his fidelity to the cause that he is entrusted to serve. And I
have respect for that. I could say I was little miffed with him
at the time. That's fair to say. But nonetheless, I respected
it, because he had such a heavy presence at the time, not in
California, but in other states, in coal.
And I think he's going to carry that same style of
leadership to the Commerce Department. Simply put, he
understands what businesses need to succeed, and I think will
bring that approach to the department, if confirmed.
In addition, he has served as a director, chairman, or
adviser for a wide array of companies, schools, and nonprofits,
including many institutions with deep roots in California, such
as a director of the Walt Disney Company, BrightSource Energy,
Boeing, and assets manager KKR, the California Business
Roundtable, the Public Policy Institute of California, and
USC's Keck School of Medicine. It includes the Council for
Foreign Relations, Stanford University, California Institute of
Technology, and the California Endowment.
I'm also proud to note that he and I share the same alma
mater, Stanford, were John earned his undergraduate degree.
Later he attended Yale Law School before returning to
California.
John's experience paints a picture of a leader who focuses
on the practical and the achievable. And I think this is really
his great selling point.
So I believe, if confirmed, he will support measures that
really meet these criteria. At this time in our troubled
economic history, our number one priority as a government must
be to grow this economy. It must be to get people back to work.
In my view, John's combination of pragmatism, experience in
the boardroom, and understanding of the public sector will make
him an outstanding Secretary of Commerce. I expect he will be a
powerful voice inside the Administration and a partner with the
business community to grow our economy and open international
markets for American manufacturers. I count on him to do just
that.
I'm delighted that he is here today with his wife, Louise,
who sits directly behind me.
And I very much thank you for the courtesy, Senator
Rockefeller, and also for that of your committee. Thank you
very much.
The Chairman. Thank you, Senator Feinstein, for what was a
very eloquent introduction.
I call now on Senator Boxer, so that she can make her
remarks.
STATEMENT OF HON. BARBARA BOXER,
U.S. SENATOR FROM CALIFORNIA
Senator Boxer. Thank you so very much.
I want to thank Senator Feinstein. I know she needs to
leave, and we wish her well in all of her hard work. I often
say at home, I'm chairman of a committee, and Senator Feinstein
is, but the difference is, I can talk about my work and she
really can't say that much about hers, because the Intelligence
Committee is kind of secretive, so we wish you well.
Senator Feinstein. Thank you.
Senator Boxer. I want to say how pleased I am to add my
voice of welcome to the Brysons, both of them.
And, Louise, why don't you raise your hand, so everyone
sees who you are. We're just thrilled you're here, and they
have four daughters.
And I want to say to my colleagues on both sides of the
aisle, I think that our country is really better served when
the people pay attention to the work we do. I hope they pay
attention to this nomination and the way this particular
nominee is treated. I could speak personally that Senator
Lautenberg is right when he says, thank you, John, for
accepting this challenge. And I hope you'll be treated with
respect. I hope you'll get a swift confirmation.
And I'll tell you why. You bring a wealth of experience in
both the private sector and the public sector to this very
important job. You get it. You understand what it means to meet
a payroll. You understand what it means to create jobs. You
understand what it means when people are hurting. And people
are hurting, and we all know that. And again, we're so
fortunate to have you here.
What I'm going to do is, Mr. Chairman, in the interest of
time, is to ask you to put my statement in the record.
And I would like to conclude with a quote from the Los
Angeles Times, June 21, a wonderful editorial, and I'll close
with that within my time. The headline says, ``Commerce
Department nominee deserves the job,'' and the subhead is,
``Within a rational political universe, John Bryson's
credentials would bring him confirmation by acclamation.''
And here's what they say, in part, ``A long-time chairman
and chief executive of Southern California Edison and Edison
International, he is a pillar of the region's business
community, admired by the Chamber of Commerce and his fellow
executives. He also was a founder of the Natural Resources
Defense Council, where his work earned him respect and
appreciation from California's environmental movement. He's
been president of the California Public Utilities Commission
and he even served as a director of Boeing, dipping his toe
into the nation's military-industrial complex. He is thus the
rare nominee.''
And that's why I say--my editorial--I hope everybody
follows this in politics, whether you're a Republican, a
Democrat, or an independent, because John is the rare nominee
to present himself to Congress with endorsements from the
Chamber, military suppliers, and the nation's leading
environmental organizations.
If ever there was a time for someone who can bring us all
together, this is that moment in history.
Tom Donohue of the Chamber said, Mr. Bryson's ``extensive
knowledge of the private sector and years of experience
successfully running a major company'' makes him qualified. The
Business Roundtable, Senator Lautenberg read a quote, let me
read another one. The Business Roundtable called Mr. Bryson,
quote, ``A proven, well-respected executive who will bring his
private sector experience to the Commerce Department's broad
portfolio that includes technology, trade, intellectual
property, and exports, which will be crucial to expanding the
economy and creating jobs.''
I noted in your opening statement, John, that you talked
about your work with colleagues in founding the NRDC, and it
was before Richard Nixon signed the Clean Air Act and the Clean
Water Act and the rivers were on fire at that time. And I want
to thank you for that, because I find myself quoting Richard
Nixon quite a lot on the floor of the U.S. Senate these days,
as there are moves to repeal this or that part of our landmark
laws.
So, in sum, this is a man who really should be a unifying
force. And I'm just thrilled with the nomination, and I thank
you for the honor of being able to speak today.
[The prepared statement of Senator Boxer follows:]
Prepared Statement of Hon. Barbara Boxer, U.S. Senator from California
Thank you, Chairman Rockefeller and Ranking Member Hutchison.
I am pleased to introduce John Bryson of California, President
Obama's nominee to be Secretary of Commerce.
Mr. Bryson brings a wealth of experience in both the private sector
and the public sector to the very important job of Commerce Secretary.
In the 1970s and 1980s he served as the Chairman of the California
Water Resources Board and as the Chairman of California Public
Utilities Commission. There he helped California navigate droughts, oil
shortages, and other crises during a critical period in our state's
history.
And for more than 20 years Mr. Bryson has utilized his talents in
the private sector, first as Chairman and CEO of Southern California
Edison, and later as Chairman and CEO of Edison International.
Mr. Bryson has also served on the boards of many companies, both
large and small, and will bring to the job of Commerce Secretary a
unique expertise on what it takes for businesses to grow and expand.
As Mr. Bryson has said and will say again today, his top priority
is job creation.
As Commerce Secretary he'll be working closely with the President
to meet the goal of doubling the Nation's exports by 2015 and creating
hundreds of thousands of new jobs here in the United States.
He'll be working with the private sector to drive innovation and
economic growth. And he'll be working to make the United States a
leader in the clean energy economy.
At Edison International, Mr. Bryson helped California become a hub
for clean energy development and clean energy jobs by making
investments in solar and wind technology.
He understands new clean energy technologies will create millions
of jobs here at home and that the Nation that rises to this challenge
will lead the world.
These varied experiences will serve Mr. Bryson well as he takes on
a role in the Administration that will require him to work with
President Obama and the private sector to invigorate our economy and
create jobs.
Mr. Bryson's nomination has been applauded by all sides of the
political spectrum, from environmentalists to business interests.
Tom Donohue of the Chamber of Commerce praised Mr. Bryson's
``extensive knowledge of the private sector and years of experience
successfully running a major company.''
The Business Roundtable called Mr. Bryson a ``a proven, well-
respected executive who will bring his private sector experience to the
Commerce Department's broad portfolio that includes technology, trade,
intellectual property and exports, which will be crucial to expanding
the economy and creating jobs.''
The Natural Resources Defense Council, which Mr. Bryson helped
found in the 1970s, called him ``a visionary leader in promoting a
clean environment and a strong economy. He has compiled an exemplary
record in public service and in business that underscores the strong
linkage between economic and environmental progress.''
I would also like to ask unanimous consent to place into the record
an editorial from today's Los Angeles Times titled ``Commerce
Department nominee deserves the job.''
Mr. Bryson's unique background will serve him well as he works with
President Obama to create jobs.
I applaud the President for choosing such a well-qualified,
experienced individual to be Commerce Secretary and I look forward to
his confirmation.
______
Editorial--Los Angeles Times, June 21, 2011
``Commerce Department nominee deserves the job''
Within a rational political universe, John Bryson's credentials would
bring him confirmation by acclamation.
John Bryson's nomination to be President Obama's next secretary of
Commerce has been met with the predictable combination of delusion and
obstructionism that characterizes the modern confirmation process. Some
Senate Republicans vow to hold him hostage to the passage of several
long-sought free-trade agreements; others insist they will reject him
based on his presumed politics, which they wish were more like theirs.
None has advanced an argument worthy of defeating this nomination, and
though sensible people will withhold a final judgment until after
Bryson is questioned, his credentials are encouraging, as are the
endorsements of those who know him.
Bryson is a familiar figure in Los Angeles. A longtime chairman and
chief executive of Southern California Edison and Edison International,
he is a pillar of the region's business community, admired by the
Chamber of Commerce and his fellow executives. He also was a founder of
the Natural Resources Defense Council, where his work earned him
respect and appreciation from California's environmental movement. He's
been president of the California Public Utilities Commission and even
served as a director of Boeing, dipping his toe into the Nation's
military-industrial complex. He is thus the rare nominee to present
himself to Congress with endorsements from the Chamber, military
suppliers and the Nation's leading environmental organizations.
Within a rational political universe, that would entitle Bryson to
confirmation by acclamation. But zealots are suspicious. His critics
question his support for regulation to address climate change and see
his NRDC leadership (more than three decades ago) as evidence that he's
a ``job killer'' and an ``environmental extremist'' rather than a job
promoter as the Commerce secretary traditionally is. Never mind that
Bryson's record is one of both serious business development and
responsible environmental stewardship.
Then there's the issue of the free-trade agreements. Yes, Obama has
moved too slowly to forward the South Korea, Colombia and Panama trade
pacts that will create jobs and expand the reach of American business.
And yes, Obama's labor allies are principally to blame for obstructing
those pacts. But those objections are irrelevant to Bryson's nomination
and shouldn't be used as an excuse to hold it up.
Many Republicans undoubtedly would prefer a nominee who championed
drilling as the answer to America's energy needs or who countenanced
their anti-scientific challenge to global warming. They have their
chance: Elect Sarah Palin. In the meantime, Obama deserves a Cabinet
secretary of impeccable credentials and broad support. Bryson has a
chance to prove that he's all of that at the hearings that begin
Tuesday. Republicans owe him the opportunity.
The Chairman. Thank you, Senator Boxer, very much for your
excellent words, and your statement is entered into the record.
Senator Boxer. Thank you.
The Chairman. We now return to the regular order and
Senator Kerry.
STATEMENT OF HON. JOHN F. KERRY,
U.S. SENATOR FROM MASSACHUSETTS
Senator Kerry. Thank you very much, Mr. Chairman. Mr.
Chairman, I ask unanimous consent that a full opening text be
placed in the record as if read in full.
The Chairman. It'll happen.
Senator Kerry. And I ask that a letter to you, Mr.
Chairman, from Congressman Tierney and Congressman Frank,
regarding Massachusetts fisheries, be made part of the record.
The Chairman. That will also happen.
[The information referred to follows:]
Congress of the United States
Washington, DC, June 16, 2011
Senator John D. Rockefeller IV,
Chairman,
Senate Committee on Commerce, Science, and Transportation,
Washington, DC.
Dear Chairman Rockefeller:
As you may know, we have the privilege of representing coastal
communities in Massachusetts, including Gloucester and New Bedford,
among other cities and towns, which fishermen call home. Ensuring that
our fishermen can continue to sustain their livelihood and provide for
their families has been and continues to be a top priority of ours in
Congress.
Unfortunately, the fishing community continues to endure numerous
challenges and economic hardships. For years, we, along with many of
our colleagues, have attempted to work with the Department of Commerce
in support of our fishermen, but our efforts have been met with
repeated opposition and resistance.
We are aware that, as part of the Senate's confirmation process,
Mr. John Bryson, the President's nominee to be the Secretary of
Commerce, will soon appear before the Committee on Commerce, Science,
and Transportation (``the Committee''). At Mr. Bryson's hearing, we
believe he must commit to bringing a fresh perspective and renewed
sense of fairness to issues impacting the fishing community.
Specifically, there are several important areas warranting Mr.
Bryson's on-the-record opinion that we wanted to respectfully bring to
your attention:
Authority to Raise Catch Limits
On October 14, 2010, Commerce Secretary Locke sent a letter in
which he wrote that he was ``prepared to issue an emergency regulation
to revise catch limits whenever there is both sufficient economic and
sound scientific data to support such an emergency regulation.'' \1\
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\1\ Letter from U.S. Department of Commerce to Representative John
Tierney. October 14, 2010.
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Subsequently, Massachusetts Governor Deval Patrick and the
Massachusetts Division of Marine Fisheries, in coordination with the
Massachusetts School of Marine Science and Technology through the
Massachusetts Marine Fisheries Institute, issued ``A Report on Economic
and Scientific Conditions in the Massachusetts Multispecies
Groundfishery'' on November 5, 2010.\2\
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\2\ Massachusetts Marine Fisheries Institute: A Report on Economic
and Scientific Conditions in the Massachusetts Multispecies
Groundfishery. November 5, 2010.
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This report seemed to make clear that an economic emergency existed
and required immediate action. The report demonstrated that there was
scientific justification to ``raise catch limits by at least 30 percent
for most species, and significantly more for some, while still
remaining within conservation bounds.'' Further, the analysis found
``approximately $19 million of foregone economic opportunities in
Massachusetts due to catch limits that were set at the lowest end of
allowable ranges.''
We joined with some of our Massachusetts colleagues in the U.S.
House of Representatives and the U.S. Senate in supporting Governor
Patrick's request that the Secretary use his authority to act swiftly
to issue emergency regulations revising catch limits to higher levels
that remain consistent with conservation requirements.\3\
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\3\ Letter to Secretary of Commerce from Senators Kerry and Brown
and Representative Frank, Tierney and Delahunt. November 18, 2010.
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On January 7, 2011, the Secretary responded with a denial of this
emergency request. We continue to be disappointed in this decision and
believe the Secretary was provided sufficient scientific and economic
data to support an increase in catch limits.
It is imperative for Mr. Bryson to clearly articulate the
circumstances under which he would issue emergency regulations.
Additionally, Mr. Bryson should state his interpretation of Magnuson-
Stevens Fisheries and Conservation Management Act as it relates to how
much economic data should factor into the implementation of the catch
share program.
Economic Assessments
The above-mentioned report also provided data which showed the
consolidation of the small boat fishing fleets. According to the data
available at the time of the report, of the 385 Massachusetts
groundfish boats that had joined sectors, 56 percent had not yet been
active in the fishery in 2010. This compares to 46 percent inactive at
the same time the previous year. Additionally, the report states, ``a
comparison of 2010 Annual Catch Entitlements (ACE) to actual landings
in recent years shows as much as two thirds of fishing permits were
allocated 50 percent-60 percent less than their 2007-2009 average
annual harvest. This reduction in allocation represents lost revenue of
$21 million for this portion of permit holders.'' \4\
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\4\ Massachusetts Marine Fisheries Institute: A Report on Economic
and Scientific Conditions in the Massachusetts Multispecies
Groundfishery. November 5, 2010.
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A Congressional request was made as a result of the data in the
report, and the subsequent decision by the Secretary in January not to
raise catch limits, for an Economic Development Assessment Team
(heretofore referred to as ``the Team'') to be sent to areas up and
down the coast to assess and evaluate all options to provide economic
assistance to the fishing communities negatively impacted by the
implementation of Amendment 16.\5\
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\5\ Letter from Representatives Tierney, Markey, Frank and Keating
to Secretary Gary Locke. March 17, 2011.
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As a result, the Secretary deployed the Team to Gloucester on May
2-4, 2011 and New Bedford on May 4-6, 2011. To date, there has not been
any recommendation or analysis completed on the information and data
collected at these meetings.
Given the importance of addressing the economic impact of the catch
share system, it is critical for Mr. Bryson to commit to completing an
analysis, with directive action, of the Team's findings and agree to
making such information available to Congress and the public.
Along these lines, Mr. Bryson should affirm that he will continue
to provide financial assistance to negatively affected fishing
communities. Specifically, we believe Mr. Bryson should outline
specific action he plans to initiate to provide fishermen relief from
the burden of onerous regulation, similar to that which Secretary Locke
provided in the two-year delay of the requirement for the fishing
industry to cover the costs of dockside monitoring.
Asset Forfeiture Fund
As you may be aware, the Department of Commerce Inspector General
(IG) has issued several reports in the past 18 months that have
highlighted common abuses and misuses of power, as well as rampant
mismanagement throughout the agency, specifically in the Office of Law
Enforcement (OLE) in the Northeast region. Specifically, the IG found
``weak internal controls'' over NOAA's Asset Forfeiture Fund (AFF).
Due to the lack of information available to the 1G during the
initial investigation, the agency conducted a follow-up report
specifically on the AFF, issued on July 1, 2010 entitled, ``Review of
NOAA Fisheries Enforcement Asset Forfeiture Fund.'' The findings showed
that ``NOAA has administered the AFF in a manner that is neither
transparent nor conducive to accountability, thus rendering it
susceptible to both error and abuse.'' \6\
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\6\ Memorandum from U.S. Department of Commerce Office of Inspector
General to Dr. Jane Lubchenco: Review of NOAA Fisheries Enforcement
Asset Forfeiture Fund. July 1, 2010.
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While NOAA has taken some corrective action to address the findings
of the report as it relates to the AFF, one important thing remains
unclear: how NOAA has used the funds since the report was released. In
August of 2010, NOAA confirmed a balance of 58.4 million in the AFF in
March of 2011, NOAA initiated an audit to be completed this month.
NOAA has stated that ``ensuring that the monies in the AFF are
properly accounted and used is essential to carrying out our duties as
responsible managers of Federal dollars.'' \7\
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\7\ Memorandum from Dr. Jane Lubchenco: Corrective Actions to
Restore the Financial Integrity of the National Marine Fisheries
Service (NMFS) Enforcement Asset Forfeiture Fund.
July 8, 2010.
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Mr. Bryson should commit to continuing to audit the AFF to ensure
the monies collected through fines issued by OLE officials are used
appropriately and inform Congress and the public on the results of the
audit.
Further, under current NOAA policy, there is authority to use
monies from the AFF for the following purposes, among others: rewards
of not less than 20 percent of the penalty collected or $20,000,
whichever is the lesser amount, for information related to enforcement
actions; expenditures directly related to specific investigations and
enforcement proceedings; and reimbursement to other Federal or State
agencies for enforcement related services provided pursuant to an
agreement entered into with NOAA.\8\
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\8\ National Oceanic and Atmospheric Administration Policy on
Prohibited and Approved Uses of the Asset Forfeiture Fund. March 16,
2011.
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Mr. Bryson should indicate if he agrees or disagrees that allowing
the use of AFF monies for this purpose could be a conflict of interest
between OLE officials and the fishing industry that the OLE regulates.
Mr. Bryson should make clear whether he believes the current NOAA AFF
policy appropriately addresses the errors and abuses cited in the
aforementioned July IG report.
Finally, for the first time, NOAA included the AFF in its annual
budget submission for Fiscal Year 2012. Presumably, this will be a
practice that will continue in the years ahead. However, Mr. Bryson
should confirm that this kind of disclosure related to the AFF will be
included in future budgets.
Improving Relationships with Fishermen
As the initial IG report made clear, there is a ``highly-charged
regulatory climate and dysfunctional relationship between NOAA and the
fishing industry--particularly in the Northeast Region.'' \9\
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\9\ U.S. Department of Commerce Office of Inspector General:
National Oceanic and Atmospheric Administration Review of NOAA A
Fisheries Enforcement Programs and Operations. Final Report No. DIG
19887. January 2010.
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One of the IG's recommendations included in this report was for
NOAA to consider ``reestablishing the position of ombudsman to serve as
an interface with the regulated industry; such a position was created
in May 1999, but has remained vacant for several years and it is
unclear within NOAA whether the position still exists.''
NOAA has not yet reestablished this position. The agency did,
however, establish an e-hotline for enforcement related complaints in
September 2010 and named former commercial fisherman, Don Frei, to the
newly created position of Compliance Assistance Liaison to continue
outreach to the industry in the Northeast in April 2011.
Mr. Bryson should indicate if he agrees or disagrees with the IG
that NOAA needs an ombudsman to ensure that NOAA leadership regularly
addresses and provides input to enforcement priorities and strategies
with regional management, including formal reporting protocols.
Similarly, Mr. Bryson should make clear his intentions on whether the
e-hotline and Compliance Assistance Liaison position will continue. Mr.
Bryson should be willing to commit to increasing personnel dedicated to
directly addressing fishermen's concerns, if that is deemed necessary.
Conclusion
If he is confirmed, Mr. Bryson will be the Secretary of Commerce at
a critically important time for the fishing industry. As we trust the
foregoing evidences, there is sufficient interest in these issues and a
commitment to ensuring fishermen and their families are treated with
fairness. Congress must expect the same of the Secretary of Commerce.
We appreciate the challenges with appropriately scrutinizing
Presidential nominations, and we hope you will consider the above-
mentioned items as a respectful contribution to the Committee's
constitutional process.
Thank you for your attention and please do not hesitate to contact
us should you wish to discuss the aforementioned issues further.
Sincerely,
John F. Tierney,
Member of Congress.
Barney Frank,
Member of Congress.
Senator Kerry. Thank you, Mr. Chairman.
Mr. Chairman, let me follow quickly on the words that were
really well-articulated by Senator Feinstein and Senator Boxer.
And I say this partly to my colleagues on the other side of the
aisle. I hope they will really take note of the extraordinary
qualifications that this nominee brings to the table. One
colleague mentioned the fact that he had been the CEO of a
major regulated company. I would respectfully submit that I
think my colleagues are going to find that this is a bold and
creative capitalist who has served on more boards of
directorships of major companies of diverse nature then all of
the members of this committee put together. And I think that he
brings a rare level of business expertise at a time when we
obviously all know we have to create jobs and we have to change
the dynamic in this country.
I think my colleagues are going to find that both nominees
have a strong sense of how to do that. And the Commerce
Department is going to be a critical player with respect to
transportation, infrastructure, research, and the information
economy, a lot of the technology issues that we need to deal
with. I think we've got a terrific spokesperson who is coming
to us at a point in life where this is the last thing this
person needs to do but is doing it because the President has
asked him to and because he understands the challenge and he
appreciates the challenge.
I think we're fortunate to get somebody to be willing to go
through this unbelievably convoluted and demanding ethics
process that requires you to sell stock no matter what level it
may be of loss, and to put yourself through an incredible sort
of hiatus, simply to serve.
And I think my colleagues are going to find that nominee
Bryson comes to the table as a bold advocate of America's
interests and of the free-market system. And I look forward to
his proving that to you in the course of this testimony.
I just would say quickly that every Secretary, and I
mentioned this to him when he came to visit with me, has always
been surprised to find that they have a navy and they have
interests on the ocean as significant as the Commerce
Department has.
And I just want to say to the Secretary, this is a tricky
time in the regulation of our fishing industry and an
opportunity for the Department of Commerce, NOAA, and our
fishing communities to come together again. And I think that's
going to be a real challenge of leadership for a new Secretary.
Federal regulations have forced a lot of the fishermen out
of the business, pushed many more to the brink. And many of our
Massachusetts fishermen are doing all they can just to keep a
roof over their head and feed their families, and they're very
frustrated that the Department of Commerce has made a series of
decisions that seem--I'm saying ``seem''--to make it more
difficult.
So I look forward to working with the Secretary-Designate,
and I hope he will be rapidly put in place. The country needs a
Commerce Secretary as rapidly as possible to address these many
concerns about our economy, including relations with China,
intellectual property, trade, and other issues.
And so, Mr. Chairman, I am strongly, obviously, supportive
of this nomination. I hope my colleagues will discover what a
lot of us feel very strongly about.
[The prepared statement of Senator Kerry follows:]
Prepared Statement of Hon. John F. Kerry,
U.S. Senator from Massachusetts
Secretary Designate Bryson, thank you for your testimony and for
your willingness to serve our Nation. If you are confirmed as the next
Secretary, you will be taking the helm of the Department at a critical
and difficult moment--where the decisions we make--or fail to make--on
new energy sources, on infrastructure, technology, and research, will
play an enormous role in our leadership role in the global economy.
You would serve as Secretary at a particularly vital time for the
Information Economy. As you know, today, there is no privacy law for
general commerce. Data collectors alone are setting the rules.
But due to the good work of your predecessor, the Department of
Commerce is in the process of becoming a leading voice in the
Administration and the Nation on privacy issues. To date, the agency
has taken a balanced and thoughtful approach to the challenge. In its
December report is sought to meet both the need for baseline standards
of protection for individuals as well as flexibility for firms in ways
to meet those baseline standards and I hope you will continue to make
this a priority.
We have tried to complement that work here in the Senate. In S.
799, the Commercial Privacy Bill of Rights, Senator McCain and I, along
with Senator Klobuchar propose rules based on fair information practice
principles for all collectors of information. Those basic principles
include the idea that regardless of the technology or method used to
track Americans, they should know when they are being tracked, why, and
how long that information will be used. They should also know with whom
that information will be shared and be able to reject or accept those
practices. And they need legal protections if that respect is not
granted to them or if those terms are violated.
The Commercial Privacy Bill of Rights would allow for flexibility
for industry in complying with these principles by establishing
voluntary safe harbor programs to allow companies to design their own
privacy programs free from prescriptive regulation if their programs
reach equal levels of protection.
The Department of Commerce also plays an important role in our
trade policy. And as you know, I am an outspoken supporter of ways to
increase access to foreign markets for our exporters. I also appreciate
the effort and time the Administration has taken to get our partners to
modify their laws and regulations on labor and other issues to ensure
that the pending trade agreements result in fair competition.
But it is important that we put trade and increased competition
into its proper context. These agreements will not in and of themselves
lead to greater prosperity. They will just give us a better chance to
compete. We still need to invest in the building blocks of
competitiveness--the skills of our workers, the infrastructure of the
country, and our ability to bring. retain, and reward the best
brightest in the world.
I am deeply concerned about rising inequality at home and in the
world. And as we move forward with more open markets and competition,
we have to recognize that the wealth created has to result in improved
lives for everyone, not just those at the very top.
I also want to highlight an issue at the Department which has never
been more relevant or difficult for Massachusetts than these last
years. It is a difficult situation which Secretary Locke inherited, and
which you also would be inheriting if confirmed. Federal regulations to
limit fishing have forced some fishermen out of business and pushed
many more to the brink. Too many Massachusetts fishermen are doing all
they can every day to keep a roof over their head and to feed their
families. They are extremely frustrated about Federal decisions that
seem to make it more difficult for them to take care of their families.
I am extremely concerned about the rapid consolidation of the fleet
under the new management system. I have worked with our fishermen to
make the case that there must be more flexibility for our fishermen
when implementing Federal fishing regulations.
Charges by our fishermen of overzealous and intimidating tactics by
the Department of Commerce personnel have been confirmed both by the
Inspector General and by the Special Master. This has led to NOAA
personnel being reassigned and 11 fishermen and businesses having their
fines rescinded by Secretary Locke. There continues to be a justified
distrust of the Federal Government by the fishermen--this relationship
must be repaired and trust must be restored.
In March, I met with Secretary Locke and Administrator Lubchenco to
ask them to take action on a number of important issues facing our
fishermen. As a result of my meeting with Secretary Locke and
Administrator Lubchenco and prior efforts on the enforcement issue, the
Department of Commerce and NOAA has taken the critical first steps to
help resolve the outstanding issues facing our fishermen.
First, the Department of Commerce opened up an additional appeal
window to allow fishermen and businesses who wish to come forward to
submit a complaint to the Special Master set up after the Inspector
General investigation. Commerce Secretary Locke asked Economic
Development Administration (EDA) to visited fishing communities in New
England and is now working in partnership with other Federal agencies
to identify new and existing resources to help support local
communities and economic development in the region. NOAA made changes
to ensure our fishermen will never again have to deal with intimidation
from Federal regulators. NOAA made important personnel changes and
instituted a new penalty policy that will ensure that New England
fishermen are not subject to unfair fines that are higher than other
regions. NOAA also conducted an audit of the Asset Forfeiture Fund and
eliminated a significant portion of the Fund's historical uses, such as
the purchase of vehicles and vessels and the payment of travel expenses
not related to investigations.
While this is a good start, there is still much more work to be
done.
I continue to believe we must provide additional flexibility within
the catch levels for choke stocks. I recently sent a letter with the
Massachusetts Congressional delegation asking to an increase in the
percentage of unmet quota that can be rolled over into the next fishing
season. This request remains outstanding and it is critical that this
request is addressed as quickly as possible.
We continue to await the full analysis of the economic and social
data from the first fishing year 2011. I spoke with Administrator
Lubchenco last week about the need to release this information as
quickly as possible last. I want to work with you to ensure we have the
necessary targeted, sector-level economic and social data so we can
fully understand the changes happening in our fishery and make
appropriate adjustments to the regulations to reduce the damage they
have caused our fishermen and, at the same time, continue to build a
sustainable fishery in the future.
Finally, over the past generation, we have been unable to reach
agreement between the fishing industry and NOAA scientists on the stock
levels for Massachusetts fisheries. I would like us to begin an
important dialog to see if we can find a process to have our fishermen
and NOAA scientists work together to obtain an accurate assessment of
our fish stocks that everyone can agree upon. I know this will not be
easily done, but further cooperation and collaboration on the science
will go a long way to help bridge this gap. I have continually pushed
for additional funding for cooperative research and the need to better
incorporate this data when setting catch limits. It is critical that we
continue to fund these initiatives and find ways to increase fishermen
participation in stock assessments.
We need to work together not only to make sure our fishermen
survive these difficult times--we need to make sure there are future
generations of fishermen who will be a vital part of our economic
future: We can only reach this goal by developing a sustainable fishery
that will be healthy and profitable for generations to come.
This is an opportunity to repair a relationship between the
Department of Commerce, NOAA, and our fishing communities that has been
very badly strained in these last years. The success of the fishery and
its long and storied history can be ensured with your cooperation and
flexibility.
I would particularly like to hear your thoughts on how we might do
that going forward.
The Chairman. Thank you, Senator Kerry, very much for your
statement. Clear and thoughtful.
Senator Isakson?
STATEMENT OF HON. JOHNNY ISAKSON,
U.S. SENATOR FROM GEORGIA
Senator Isakson. Well, thank you, Mr. Chairman.
And I had the privilege of meeting with Mr. Bryson. We
share a mutual friend, David Radcliffe, who told me yesterday
at breakfast to tell you hello again, so I want to be sure and
send that along.
And I hear the admonition loud and clear, but I'm tempted
to make one other admonition to all of us. It's a two-way
street. These nominees deserve civility, a thorough
examination, but expedited treatment. But American business
deserves the same thing. And this gentleman was on the Board of
Directors of the Boeing Company, which right now is in the
middle of a major controversy brought about by the NLRB when
it's about to open a plant that's going to hire 1,000
Americans.
So I think it's fair to ask civility on both sides of the
issue of jobs, civility on the part of the regulators to not
continually be on the backs of employers at a time we don't
need it, and civility on our part to expedite the movement of
America to more trade, more commerce, and more prosperity. So
I'll agree to the first part, Senator, if you'll agree to the
second part.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Isakson. It sounds like a
fair deal.
Senator Udall is not here.
Senator Toomey?
STATEMENT OF HON. PATRICK J. TOOMEY,
U.S. SENATOR FROM PENNSYLVANIA
Senator Toomey. Thank you, Mr. Chairman. And thank you for
conducting this hearing today.
Mr. Bryson and Mr. Garcia, I want to thank you for your
willingness to serve in these important posts. I, too, had a
chance to meet with Mr. Bryson recently, and I enjoyed our
conversation very much.
Let me just suggest, Mr. Chairman, that central to the
mission of the Commerce Department, it seems to me, is the
vitally important job of encouraging economic growth and job
creation. In my view, there are a number of ways that a
Commerce Secretary can help advance that cause. Two of them,
which I'd like to touch on briefly, are first to be a champion
of the free enterprise system and to recognize that for it to
really flourish and thrive, and create the kind of jobs that
our economy is capable of creating, that system needs to be
sensibly but lightly regulated in a fashion in which the costs
of the regulations don't outweigh the benefits of those
regulations.
And the second thing that I would certainly hope to see in
a Commerce Secretary would be a champion of trade. I think the
United States could and should be the world's leading voice for
expanding trade opportunities, expanding the opportunities for
terrific American companies in the service and manufacturing
sectors to export our products all around the world.
So those are two opportunities that, it seems to me, fall
squarely in the lap of the Secretary of Commerce. I will say, I
think this Administration and this Congress in recent years has
not done very well on either front. I think we have had
excessive regulations, too many, too onerous. And I look
forward to hearing the nominee's thoughts on some of those
regulations.
And I think that we've seen a reluctance to pursue a pro-
trade agenda, one that would help encourage economic growth and
job creation. And so I look forward to hearing the nominee's
thoughts on how we can re-engage, re-accelerate the process of
America leading in a global expansion of trade.
So again, I want to thank you for holding this hearing, Mr.
Chairman. And I thank the candidates for their willingness to
serve, and I look forward to their comments.
The Chairman. Thank you, Senator Toomey.
Senator Blunt?
STATEMENT OF HON. ROY BLUNT,
U.S. SENATOR FROM MISSOURI
Senator Blunt. Thank you. Thank you, Mr. Chairman.
And I'd like to echo Senator Toomey's comments about trade
and look forward to hearing Mr. Bryson's observations about
what we do to trade. I had a chance to see the U.S. Trade
Representative, Ron Kirk the other night, and I'm hopeful, as
he is, that we'll see the current trade agreements come to the
Congress, and we'll see an active effort to be sure that we
open trade opportunities to Americans.
Mr. Bryson, Mr. Chairman, as we all know, has a long
history in the energy sector. He ran an energy company. He
chaired the California Public Service Commission.
And certainly, more American energy is the fastest path to
more American jobs. There's no question that the energy sector
can be--knowledge of that sector can be a huge plus in a job
that needs to focus on private sector job creation.
In 2009, Mr. Bryson gave a speech to the United Nations,
where he said that the way California uses energy is, the word
he used was a model, for the rest of the nation to follow. I am
concerned about that.
California's electricity rates rose 35 percent between 1970
and 2005. By comparison, the rest of the nation's utility rates
increased by 4 percent during that same period of time. And in
just the first 4 months of this year, California experienced
the fastest rate of companies relocating outside the state. In
fact, there were 69 different companies that moved out of
California. One of the reasons, I think, were bad energy
policies.
I want to bring this up in the context that of the thing
that I think can be the most important in creating jobs, and,
certainly, Mr. Bryson knows a lot about. I think he has seen a
model that I wouldn't want to see as the model for the country.
I just really don't see why things that create massive
increases in energy prices do anything to help grow jobs in our
country. If there is one surefire way to create jobs in the
country, and, again, something that the Department of Commerce
should be helping to do every day, it's more American energy,
meaning more American jobs.
This is the job in our government that needs to be the most
focused on how we create private sector jobs and how we create
an atmosphere where the private sector is willing to take the
risk that is necessary to create opportunity for others. And if
there's not a cheerleader for that in the Department of
Commerce, in the Secretary's role, there's probably not a
cheerleader for that very much needed focus in the Federal
Government.
And I look forward to a chance to listen to the testimony
and ask some questions, Mr. Chairman.
The Chairman. Thank you, Senator Blunt.
Senator Klobuchar?
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you very much, Mr. Chairman.
It was good to meet with you, Mr. Bryson, and I'm impressed
by your background. What we talked about in my office, I would
emphasize again.
I think that we're going to lose a real opportunity in this
country if we don't pursue a competitive agenda for America. I
think the Commerce Secretary is in a unique position to do
that. Some of it is under your agency, but some of it simply
should come with the need to have someone that brings agencies
together and focuses on moving our country forward
competitively.
And the things we talked about, workforce readiness so that
we have people actually getting degrees and getting trained in
jobs where we need them. Obviously, that's working with the
Department of Education, but when they can't find a welder in
southern Minnesota to work at agriculture equipment places that
are trying to find highly paid employees, we've got a problem.
Small and medium-sized businesses with exports, helping
them to have the kind of resources that they need, which can be
very small investment for the big gain they get.
Working with the State Department so that our large
businesses are better able to get contracts and get assistance
from our agencies and other countries, in order to follow
through on the President's pledge to double exports.
The rules and regulations, which some of my colleagues have
referenced--we no longer are competing in a vacuum in this
country. Our businesses are competing against companies in
other countries that have different rules and regulations. And
I think the Commerce Secretary can be a force to push for
changes in that area.
And then one specific area that the Commerce Department has
direct jurisdiction over, where I think it's not just the low-
hanging fruit but the fruit rolling around on the ground, and
that is tourism. We talked about the fact that we have lost 16
percent of the international tourism business in this country.
It's not about the economy, as the leading Republican on our
committee, Senator Blunt, knows. This is about the delays we
are seeing in our embassies across the world, India, China.
India takes 93 days average to get a visa from Shanghai to come
to America, and it takes only 10 days to go to Great Britain.
That is a big problem. Every one of these foreign tourists
spends an average of $5,000 when they come to this country.
And we have been pushing this. Every point we've lost is
165,000 jobs. So if we want to meet the President's goal and do
something about jobs in this country, I'd start right on day
one saying let's work to change this visa policy, not to change
the security, just to get the consulate officers out there that
generate $1 million in fees a person. I don't think their
salaries are that high.
So those are things that we can do that make fiscal sense
for this country. And a lot of this isn't about passing bills.
It's just about trying as hard as we can to make this country
competitive with what we have.
So I want to thank you. I know you've achieved a lot in
your past jobs. And I know it's a lot that I've laid out here,
but I truly believe that's where we need to go as a country
with the Commerce Secretary. Thank you.
The Chairman. Thank you, Senator.
Senator Heller is not here.
Senator Snowe?
Senator Snowe. Senator DeMint, did you----
The Chairman. Look, I don't want to make a big deal about
this, but I have Senator Snowe and then Senator DeMint. Can you
two make peace or do you want to yield each other?
Senator Snowe. No, I wanted him to go.
The Chairman. Oh, you want him to go.
Senator DeMint?
STATEMENT OF HON. JIM DeMINT,
U.S. SENATOR FROM SOUTH CAROLINA
Senator DeMint. Thank you, Senator. Thank you, Mr.
Chairman. I'll try to be brief.
Thank you, Mr. Bryson, for coming by my office. I
appreciate your willingness to serve, and I really have no
question about your credentials. My question is about the
environment you'll be working in, and whether or not you'll
have the courage to speak up against some of the most anti-
business policies I think we've ever seen in our country. And
this is not political rhetoric.
As Senator Isakson already mentioned, the National Labor
Relations Board, the Acting General Counsel, who has been
appointed by Obama to be the General Counsel, has accused you
as well as Bill Daley, Chief of Staff for the President, of
breaking the law. Somehow, we have to resolve this duplicity.
They're forcing a major American company to spend millions
of dollars and put thousands of jobs on hold for what is an
unprecedented violation of a company's ability to locate an
expansion facility anywhere they want. The President is not
speaking up. My question is, will you?
I was on a $600 million oil drilling rig in the Gulf. It's
brand new. It's been sitting there 6 months. Thousands of jobs
are on hold. It costs $600,000 a day to have it wait. But it's
just because they can't get a permit. And that may not be under
Commerce, but we need a commerce advocate in our country.
As Senator Toomey has said, there's a lot of rhetoric about
free trade, but when the agreements are supposed to be sent
over, they're not sent over, and one excuse after another.
Thousands of jobs, probably billions of dollars of
investment, are being sidetracked in the telecommunications
business, because the FCC is violating Congressional direction
and court orders to move ahead and regulate the Internet in a
way that makes investors hesitant.
With the EPA, it's just amazing, hearing from the companies
that come through my office, whether they're in manufacturing
or utilities or mining, the absurd regulations and gray areas
that are being created.
Of course, banks are afraid to make loans, because of the
regulators hanging over their shoulders.
I can keep going all day. I would not be Commerce Secretary
in an Administration that has taken all these positions. I
appreciate you being willing to do it. But we've got a lot of
challenges.
And you said that the American people expect us to do more
with less. The Commerce Department has been doing less with
more. They've increased their budget. Last year, they increased
it over the year before, this year over last year.
So you've got a lot of challenges, and we need good
commerce in America. One thing the Constitution says is that
the Federal Government should facilitate interstate commerce.
The last thing we're doing right now at the Federal level is
encouraging commerce.
So, I appreciate your willingness to serve and be here
today. You've got great credentials. I'm not sure about the
people you'll be working with.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator DeMint.
Senator Snowe?
STATEMENT OF HON. OLYMPIA J. SNOWE,
U.S. SENATOR FROM MAINE
Senator Snowe. Thank you, Mr. Chairman, and thank you for
holding this hearing.
Obviously, these are two important positions, and I, too,
had the opportunity and the pleasure yesterday to meet with the
nominee, Mr. Bryson, as Secretary of Commerce. And of course, I
know Mr. Garcia from his days as Assistant Secretary of
Commerce for Oceans and Atmosphere, as well as deputy
administrator to NOAA.
There's no doubt Mr. Bryson has a very extensive background
in the corporate arena, as CEO of Edison International. And I
do believe that he has an appreciation for the paramount value
of job creation in the private sector, and that it's absolutely
a prerequisite to our economic well-being, and central to
revitalizing the economic conditions of this country.
I also want to echo what Senator Kerry said with respect to
Mr. Garcia, because I think it's important for the fisheries
industry to make sure that we're not imposing burdensome
regulations on an industry that is struggling to survive. We
have to design regulations that are important to the fishing
communities and to the fishermen as well as to rebuilding the
species. These are not mutually exclusive endeavors.
Mr. Chairman, if I look at the mission of the Commerce
Department, which of course is to create jobs, to have
sustainable development, and to improve the standard of living
for Americans, the problem at this point in time, is the
mission of the Commerce Department is juxtaposed with the
reality of our overall economy. The Commerce Department in the
Secretary has to be a loud megaphone, has to be a dynamic
thinker, has to be speaking for the people of this country and
on behalf of the private sector on how we're going to
rejuvenate the economic conditions of this country.
We hear a lot of talk about job creation. We've been
hearing it endlessly. And yet, we have no job creation. I mean,
I think the statistics describing America's economy today are
pretty grim and particularly for the 22 to 25 million people
unemployed. It's one of the deepest and longest recessions
we've had, certainly since World War II, the longest since
1982, which was at that time the longest.
But then we saw the job growth last month, a paltry 54,000
jobs. And then we look at the condition of the housing market;
there's a slump. We see the unemployed being unemployed for
longer periods of time. The total number of employed is down to
58 percent, the lowest level in 30 years. So we talk about
jobs, but nothing is happening.
And two and a half years ago, when I was considering your
predecessor, talking about the issues of the Commerce
Department, there are so many disparate organizations within
that department. They need to be coordinated and centralized. I
mentioned to you, Mr. Bryson, we need to have a maximum focus
on job creation and job potential. And we have to do that. And
that's not happening within the Commerce Department with the
billions of dollars, with the thousands of employees, and we
haven't been able to use that department to be singularly
focused through the one prism of job creation, which we
desperately need now.
So I hope, Mr. Bryson, that you will give voice and bring
your initiatives as a key member of the President's economic
team at a time that I've never seen worse than this economy
that were experiencing here today, and more than anything else,
worse for the people in this country who are struggling and the
businesses who are struggling to survive, because of the
onerous and punitive regulations, which, frankly, I think many
of the agencies have engaged in a regulatory rampage. That has
to cease and desist as well.
But the bottom line is, we need to have a Commerce
Department being that singular weapon on behalf of the private
sector to create the kind of jobs and to have the fair and
level playing field in the trade arena as well.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Snowe, very much.
Senator Begich?
STATEMENT OF HON. MARK BEGICH,
U.S. SENATOR FROM ALASKA
Senator Begich. Mr. Bryson, Mr. Garcia, do you still want
this job after--[Laughter.]
Senator Begich. Let me just say, I really didn't have
opening comments, so I'll just be very brief and just say that,
one, I'm looking forward to working with both of you, but
especially from Alaska's perspective, as we're very proud of
our fisheries. They're sustainable, they're growing, they're a
huge export opportunity for this country through wise
management and cooperation and work with the Commerce
Department over the years. Even though we've had our friction
at times with NOAA and the Commerce Department, we have created
an incredible opportunity in a sense of fisheries, from our
perspective in Alaska, which now manages 60 percent of the live
catch of this country.
And so we think we have examples and expertise that can be
shared around the country on how to maximize the fishery
opportunities that are not as great in certain parts of the
country.
Also, Alaska is a net exporter, $4.2 billion in commodities
last year, up almost 30 percent. I think in a lot of ways--I'll
brag--that we're doing it right. We understand commerce. We're
international. In a lot of ways, we get forgotten over far
north. People think we're down by California, and we have to
remind them, no, we're not. But at the same time, we survive on
our own, in a lot of ways, in the sense of our export
opportunities. We trade with China, Japan, Asia, Europe; you
name it, we do it.
And a lot of the work you do and you will do as dealing
with fisheries, tourism, export, international trade, that's a
lot of Alaska. And so we're anxious to work with you.
And, you know, I try not to be a doom-and-gloomer, to be
very frank with you. Two years ago, this economy was a
disaster--a disaster. And not overnight. It was a decade of
neglect by many people throughout Congress and throughout this
country. We're better today than we were 2 years ago, but it's
still a fragile economy. I think that's the stress point that
everyone has here, that jobs are the most important piece of
the equation.
So how you take it to the next level is going to be
critical, because we have created jobs. They may not be as
robust as we would like, but we're at the great recession,
which is the equivalent, if we missed a couple notches in 2009,
it would've been the Great Depression. But a couple things we
did in this Congress helped save us and keep us on an even
keel.
But now we have to take it to the next level, and I think
that's what we're looking for and looking toward you to do, as
well as others of the President's economic Cabinet, because
with your work, it's going to help to determine a long-term
future.
But I'm not a doom-and-gloomer. I just gave you statistics
from a state that understands what it's like to not just work
within our borders but globally and understands that there is
business beyond our borders, and sometimes you have to just
bite the bullet and get moving. So that's what we're looking
for.
And I think your business experience is going to be
critical, and I think you have a bureaucratic system over
there. You have to change part of the culture to understand
that it isn't just ``no.'' It is, what do we do to make
something better or move it forward. That's what I think you're
going to be able to add.
And, Mr. Garcia, same thing. The work you did on the oil
spill commission, as you know, we've had some conversations.
And I think the opportunity is enormous in Alaska. And NOAA
plays a role in making sure that we move forward in oil and gas
exploration in the Arctic and what can be done there in the
most environmentally sound way, but recognize that it's a
critical piece of our commerce in the future.
So one, I hope after this hearing you still want to do the
jobs. Two, get in there with a very positive attitude, because
where we are today and where we were 2 years ago is day and
night. But we have a lot of opportunity ahead of us, and you're
going to be part of that equation. So thank you very much.
The Chairman. Thank you, Senator Begich.
We now come back to Senator Pryor. You escaped, but you
returned.
STATEMENT OF HON. MARK PRYOR,
U.S. SENATOR FROM ARKANSAS
Senator Pryor. Thank you, Mr. Chairman. Thank you for this
hearing.
And I want to thank you for your public service and your
willingness to serve, and I look forward to hearing from the
witness. Thank you.
The Chairman. That was it. All right. And it's exactly as
you fulsomely stated.
We then turn to Senator Warner.
STATEMENT OF HON. MARK WARNER,
U.S. SENATOR FROM VIRGINIA
Senator Warner. Thank you, Mr. Chairman. I'll try to you
Senator Pryor's statement as an example.
We didn't get a chance to visit before, Mr. Bryson. I
appreciate you reaching out to me.
I'm somewhere between Senator Snowe and Senator Begich,
glass half-empty, half-full. But man, oh man, we do have a slew
of challenges. And, you know, I agree with a lot of my
Republican colleagues.
We've got to push this trade agenda; 95 percent of all the
customers are abroad. We've got to have that voice to get back
the $2.5 trillion just sitting on balance sheets, to give them
the confidence to get reinvested in our country.
I personally believe the single biggest job creation
entity, bigger than anything the Commerce Department or,
candidly, anything we will do here, would be putting a long-
term debt and deficit plan in place. It would probably do more
to get that money off the sidelines than anything else.
And I want to thank you and Mr. Garcia both for being
willing to serve. I've got to tell you, I've done a lot of work
with the Chamber and the BRT. They don't give endorsements
lightly. And for an Administration that has been criticized,
not always appropriately, of not having enough people with
senior business experience at the top level, my hope is that
you will get this job and be that advocate for the private
sector, be that advocate for the business community, recognize
that we've got to read a balance sheet and get our nation's
balance sheet back in order, and get this job engine that has
improved kicked into high gear.
So I look forward to supporting your nomination.
The Chairman. Thank you, Senator Warner.
And now Senator Boozman.
STATEMENT OF HON. JOHN BOOZMAN,
U.S. SENATOR FROM ARKANSAS
Senator Boozman. Mr. Chairman, I will follow in the
footsteps of my senior Senator from Arkansas and go ahead and
yield back my time, in the interests of getting the rest of the
hearing going.
I look forward to the testimony of the witnesses. Thank
you.
The Chairman. Extraordinary eloquence, Senator. We
appreciate that.
[Laughter.]
The Chairman. Senator Thune?
STATEMENT OF HON. JOHN THUNE,
U.S. SENATOR FROM SOUTH DAKOTA
Senator Thune. Thank you, Mr. Chairman and Senator
Hutchison, for holding today's hearing to consider these two
nominations.
It's been nearly a year since Treasury Secretary Tim
Geithner published an op-ed in the New York Times entitled,
``Welcome to the Recovery,'' an op-ed that in retrospect seems
to have been a flawed prediction, to put it mildly. The economy
should be roaring back by now, but instead it's still
struggling, and the unemployment rate is 9.1 percent as of June
3.
Virtually every economic indicator out there has weakened
over the past few months. And has already been noted by some of
my colleagues, excessive corporate taxes and needless
regulations are preventing the creation of jobs and severely
limiting economic growth in the country.
With all of these problems, it is important--critically
important, actually--that we have a Secretary of Commerce who
has a strong record of accomplishment in creating jobs in the
private sector, someone who knows the challenges and how to
overcome the barriers the private sector faces in creating
jobs.
And there are aspects of Mr. Bryson's record that I think
are very impressive in some circles. There are some concerns I
have, including his support for the job-killing cap-and-trade
proposal. And so, you know, I'm anxious to hear from him about
the steps that he thinks we need to be taking to get the
country back on track and get the economy back on track.
But I will just simply echo what my colleagues have said,
Mr. Chairman, and reiterate, the Commerce Secretary has got to
be a strong advocate for trade and open markets for America's
farmers and manufacturers. And I signed a letter, along with I
think most of my Republican colleagues, to Majority Leader Reid
back in March, stating that we would withhold support for
trade-related nominees, including Commerce Secretary, until the
Administration submits the pending free trade agreements to
Congress for their consideration.
It's been over 3 months since that letter was sent, and the
Administration has still not committed to a specific timetable
for implementing those agreements. And I believe I speak for a
good number of those in our caucus when I say that it's going
to be difficult for Republicans to support Mr. Bryson's
nomination until the Administration submits those free trade
agreements. They are vital, vital to farmers and ranchers in my
state, and vital to our economic recovery.
And just to put a fine point on that, in 2008, the market
share that we had in Colombia of corn, wheat, and soybeans was
81 percent. Today, our market share of corn, wheat, and
soybeans in Colombia is 27 percent. That's how much market
share we have lost. The vacuum has been filled by other
countries who continue to sign bilateral trade agreements with
these three countries.
And so I can't emphasize that enough, Mr. Chairman. And I
appreciate both Mr. Bryson and Mr. Garcia being here today and
look forward to hearing their testimony and the steps they
intend to get the economy back on track.
Thank you.
The Chairman. Thank you, Senator Thune.
I want to call on Senator Rubio, but I understand that
you'll pass.
STATEMENT OF HON. MARCO RUBIO,
U.S. SENATOR FROM FLORIDA
Senator Rubio. Yes, let's hear from the nominees.
The Chairman. That's a statement, it's in the record. Thank
you.
And now we will come to that moment.
Mr. Bryson and Mr. Garcia, if you would come forward and
have a seat. You'll get water, which will be replenished.
And we look forward to your testimony, which is obviously
very important. And we will start with you, Mr. Bryson, when
you are ready.
STATEMENT OF JOHN BRYSON, SECRETARY OF COMMERCE-DESIGNATE,
DEPARTMENT OF COMMERCE
Mr. Bryson. Chairman Rockefeller, it is a great honor to
come before this committee. Please let me know if you can't
hear me.
So it is an honor to come before the Committee today, and I
want to extend my personal thanks to you, Senator Rockefeller,
and also to the distinguished Ranking Member Hutchison, for the
time and attention you've given to this nomination.
I've got these pages here, and I'm going to try to drop
some of them, because time's short, and I want to give you the
time. Your time is more important than mine, so I'm going to
skip some of these things.
I'm going to start with this. It was a pleasure to talk
with all of you that I was able to talk with. And I want to
underscore that my conversations with the Republicans were very
thoughtful conversations--I appreciate that greatly--as well as
my conversations with the Democratic members.
You've all talked about jobs, and I'm going to freelance
here, but the reason President Obama reached out to me was my
business experience and his absolute clarity about what he
wants from me as the Secretary of Commerce, and that is taking
what I can bring, drawing on this experience to enhance and be
a rooter for and a great assister of American business, and
with it, the jobs that follow from that.
The private sector is where the jobs will be developed,
need to be developed. We have to address that.
I wanted to introduce my wife, Louise. I'm going to simply
say, I got lucky. I got lucky.
The Chairman. We welcome her.
Mr. Bryson. Way back there. She's had a very full business
career of her own, as well as raised with me--but she's been
the star--our four wonderful daughters.
But I was going to say a little about my parents. It's only
because when you get a little older, as I am, you look back and
you say who made the biggest difference in shaping your life,
and it was my parents. And I won't even go through that. But if
you looked at what was there, they had hard lives, and they
came to have such values--a model for me.
My dad, for example, was the first ever in his family ever
to conceive of going to college, and he was forced to do it.
And because he grew up in Appalachia, so he didn't have those
opportunities.
The Chairman. Actually, Mr. Bryson, we are having a little
trouble hearing you.
Mr. Bryson. Oh, I'm sorry. If I----
The Chairman. There you go.
Mr. Bryson. Is that better?
The Chairman. Yes.
Mr. Bryson. I'll try to lean forward and do that.
In any event, so let's just say that with the influence of
my parents, strong work ethic was an enormous value, and then,
ultimately, getting a good education was an enormous value. And
that's what I grew up with, and that's what I tried to live to.
So I did go through, you know, it was unexpected, but a series
of steps that took me out of Oregon, and ultimately to Stanford
University and to Yale Law School.
And some of you know that there, at the end of that time, a
few of us gathered together and wanted to see if there was
anything we could to with the skills we were developing, and we
founded the Natural Resources Defense Council, and there've
been many comments about that.
You know, a lot has happened in the 40 years since that
took place. I practiced law. I headed two state independent
agencies, the California Water Resources Board, the California
Utilities Commission, both at times of extreme crisis, the two
driest consecutive water years in California history, for
example. So I had the opportunity to address those things.
But in 1984, I joined Southern California Edison. And
Southern California Edison later became Edison International in
the years that I was leading it, a great utility, a great
utility in California. But we were able to then take
initiatives that, among other things, increased jobs by
creating an independent power company and moving around the
United States. And then we took opportunities.
And some of you raised the question about private markets.
And the private markets were the opportunity for us because we
were able to do this independent power in a number of countries
around the world, where we were either the first to do any
privatization of any kind for state-owned systems or go
parallel with one or maybe two others in the early steps to
privatization in, for example, the United Kingdom. But we were
the first in Australia; we were the first in New Zealand and
some other places.
And I had the great good fortune of serving for nearly 18
years as the CEO of Edison International and Southern
California Edison. And I measured--I should say ``we,'' because
it was very much us working together--but we measured every day
our success by the quality with which we served our customers
and the values we were able to provide to our shareholders.
And again, in Southern California Edison, Senator Feinstein
referred to this, we had what was an extraordinary crisis in
this energy crisis in California in 2001, 2002. And that was
certainly the single toughest challenge I've ever addressed.
And we stood together as a company, and we kept the lights on
under impossible circumstances for at least 2 years. And in the
end, I think we were proud, across the employed, with what we
were able to do without going into bankruptcy, as others did.
I think you know that I've served on quite a number of
boards. I won't even touch on that. Let me just say, I also am
proud of being now with both Disney and Boeing--Boeing, the
longest serving director; Disney, among the longest-serving
directors. And I've learned so much from that.
Now what I'm facing is a challenge--the one so many of you
described and so well--that is tougher--tougher--than any I've
challenged--that I've faced in the past. But I feel like I've
learned something from input in tough spots previously.
We all know the U.S. is in recovery, but it's too slow, too
exclusive, too uncertain, not creating enough jobs. It's just
terrible.
I think that with my business background, and what the
President has said to me, I get to draw on this background. I
can reach out not just to the base of the Commerce Department,
of which I'm proud to have the opportunity, but reach and have
some particular voice in Cabinet meetings and working with
other departments and agencies.
I want to say something more. A number of you touched on
regulations, so I thought of having been a job creator in my
business, but I want to say I learned a lot about regulation.
And businesses in our country are too often stifled by
absolutely unnecessary, cumbersome regulation and unnecessary
regulatory costs and delays. And if confirmed, I will be a
voice in the Administration for simplifying regulation and
eliminating those where the costs of the regulation exceed the
benefits.
And I'm going to touch only barely on the Commerce
Department, because you know, so many of you, so much about the
Commerce Department. Jobs, how are we going to do it? It's hard
work. I mean, you can't just generalize. You have to get out,
and you have to get out into segments and parts of the economy
and parts of the country, manufacturing, services, very
broadly.
I count the export opportunity incredibly important. The
Commerce Department leads there. As Secretary, I would lead
that. We've got to continue to go to this at least doubling, at
least doubling, of the exports we do in the country by this
year 2015 target that the President set out.
We've also got to do more. We also need to pledge to hold
our trading partners accountable, so that they're living up to
their commitments. And at the same time, we have to work
abroad, as well as in the U.S., so we need to take initiatives
to bring investors to invest in the U.S. and expand jobs here
and work with the U.S. companies to stay here, not to leave our
country the way so many have.
There's no magic in doing this. I think it's mainly hard
work in reaching out and talking to people and creating a sense
of an open climate and a condition in which they can invest and
make a business a success.
So I'm going to stop there and just say I'm proud of the
fact that I'm not a stranger to handling very difficult
conditions. I'm really truly excited to work with American
businesses large and small, to work with this committee, and to
work with the American people in rebuilding our economy to
create jobs. And if I'm given the privilege of becoming
America's next Commerce Secretary, that will be my relentless
focus.
Thank you very much.
[The prepared statement and biographical information of Mr.
Bryson follow:]
Prepared Statement of John Bryson, Secretary of Commerce-Designate,
Department of Commerce
Chairman Rockefeller, Ranking Member Hutchison, and members of this
Committee, it is a profound honor to come before you today as the
President's nominee to serve as Secretary of the Department of
Commerce. The American people would feel better about our government if
they got to see the bi-partisan way you lead this Committee. If granted
the privilege of serving, it is an example I intend to emulate.
I know we all share the same hopes for our nation--stronger job
growth fueled by businesses that are more innovative at home and more
competitive abroad. It is my firm belief that the Commerce Department
can help realize those hopes.
Let me also offer my sincere gratitude to President Obama for his
confidence in me. I know I have big shoes to fill. Secretary Locke's
work to help more U.S. companies sell their goods abroad and his effort
to get Commerce's many bureaus to function as one team have made a
difference for our country.
I'd like to introduce the members of this Committee to my wife,
Louise, who joins me today. Not only a wonderful mother to our four
daughters and a wonderful wife, Louise enjoyed her own substantial
business career.
I would also briefly mention our four daughters, who could not be
here today: Jane, Julia, Ruth, and Kathleen.
We are part of a family, like so many others, that is the living
embodiment of the American Dream. My father was born near Bryson City,
in Appalachian North Carolina, but as a boy, the family moved west to
become homesteaders in far eastern Montana. After proving up the nearly
impenetrable land, however, the Montana drought of the 1920s forced
another move, this time to northwestern Washington State. There my
dad's father worked briefly as a logger, only to injure himself after
just a short time on the job.
The family barely survived the injury to its breadwinner, but my
dad, following high school, had the great good fortune of being given
the opportunity to be the first in our family to attend college. He was
sent off to the University of Washington by a man he worked for, with
jobs already set up to allow him to pay his way.
After school and a stint in the FBI during World War II, he joined
my maternal grandfather in the Oregon lumber industry, and then,
realizing his fondest dream, was able to buy a farm where my parents
lived for 40 years.
Trying in some small way to emulate his work ethic helped me get to
where I am today.
But my mom's example of service has been an abiding influence too.
She taught as a volunteer in Portland's inner city schools, and even
though she was many miles from the movement's epicenter, gave to civil
rights groups fighting for justice in their communities.
When I graduated law school 42 years ago, my trajectory was clear:
first, a federal clerkship, then on to a law firm and billable hours.
Perhaps it wasn't surprising that I joined with friends instead to
found the Natural Resources Defense Council.
This was before President Nixon signed the Clean Air and Clean
Water Acts, a time when Americans could turn on their TVs to see an
iconic river on fire. Families in many cities were struggling with
dirty water and unclean air. We believe our effort to found the NRDC
was a way for us help make our country a little healthier. For me, it
was also a chance to follow the example my mother had set.
I'm proud of helping found the NRDC. But a lot has happened in the
nearly four decades since I practiced law. I headed two independent
state agencies: California's Water Resources Control Board and its
utilities commission. I became a member in a major law firm and then
moved into business.
And in 1990, after 6 years principally as its CFO, I was made the
Chairman and CEO of one of the country's largest utilities--Southern
California Edison and its parent company, Edison International--
sometimes being opposed--and even sued--by the very group I had helped
found two decades earlier.
For nearly 18 years at Edison, I measured every day by our success
in serving our customers and shareholders.
And it was my experience there that ultimately led to invitations
to serve on the boards of other businesses, including Disney and
Boeing, where I am the longest-serving board member.
At Edison and in my public sector leadership roles, I confronted
crisis. On the water board, it was an unprecedented drought. At the
utilities commission, the energy crunch of 1979 and 1980. And at
Edison, it was the California energy crisis of 2002.
At each stop, I learned from the remarkable people with whom I've
worked.
They taught me the value of teamwork and the imperatives of
innovation, creative thinking and relentless hard work in weathering
crises.
If confirmed, I will take these lessons with me to the Commerce
Department, and I hope to instill in the organization a commitment to
not only work as one team across the agency's varied bureaus but with
other Federal agencies, too. Where there's overlapping
responsibilities, working better together will help us advance the
President's goals and the Congress' objectives.
The American people expect their government to do more with less,
keeping its shoulder to the wheel of a recovery too many are still
waiting to feel in their own lives.
Doing that means creating more jobs. And that's what President
Obama has asked me to focus on.
In my decades of experience in business, I have created jobs. And I
understand what it means to meet payroll.
Importantly, I also know what it means to be regulated from a
business perspective. If confirmed, I'm committed to helping simplify
regulations that are difficult to understand, eliminate regulations
that are ineffective and speed up regulatory decisions so American
businesses can have the certainty they need.
It's a cause, like corporate tax reform, that will make America
more competitive. It's a cause I know the President cares about. So
when I come to him with what I'm hearing from the U.S. business
community, I know I'll have an eager audience.
The perspective I've gained in the private sector is a big reason
President Obama asked me to serve and brings value to the voice I will
have within the Cabinet.
It will also help me reach out to America's business community.
They're on the economic front lines every day and, if confirmed, the
President expects me to be able to tell him about the challenges
they're facing so that this Administration does everything it
reasonably can to make it easier for them to create jobs and grow.
If confirmed, it will be an honor to lead an agency that does so
much to further that goal.
Commerce can help Americans and American businesses out-innovate
the world by fostering entrepreneurship, innovation and scientific
discovery; expand exports by promoting American products and enforcing
our trade laws; predict climate patterns to give businesses more
certainty; ensure the health of our oceans which are the lifeblood of
so many communities, and; foster economic development through
innovative strategies.
The sheer breadth of what Commerce does is staggering-from NTIA's
effort to connect more Americans to high-speed Internet to NIST's role
developing standards for the Smart Grid, and from EDA's focus on
promoting innovation clusters to the work the Bureau of Industry and
Security does keeping sensitive technology out of the hands of those
who would seek to do America harm.
It's an agency that works every day to make America more
competitive.
At Commerce, I believe that starts with the Department's leadership
role in the President's National Export Initiative.
President Obama has set a goal of doubling U.S. exports by the end
of 2014 to tap into the 95 percent of consumers who live outside our
borders. Today, just 1 percent of American companies export, and, of
those that do, nearly 60 percent export to just one market.
If confirmed, I pledge to build on the work begun by Secretary
Locke to help more small and medium-sized businesses break into new
markets--and hold our trading partners accountable so they're giving
American companies' products the same access in their markets as we
give theirs. Our success will mean more jobs and more business
investment.
At the Patent and Trademark Office, significant progress has been
made over the last 2 years. The unacceptably high patent backlog has
been reduced by 10 percent, even as patent applications have risen by 5
percent. But there's still more to do.
If America is to take advantage of the extraordinary talent of its
people, we have to remove the obstacles in front of its entrepreneurs
and innovators--whether in a Federal lab or a neighborhood garage. The
better able we are to speed ideas from the drawing board to the market,
the more likely it is that America will be home to the well-paying jobs
of the future.
Finally, improving the employment picture will also mean focusing
on the vital work NOAA does in America's coastal communities and its
world-class science and services, which support the very foundation of
commerce.
I know I've touched on just a portion of what the Commerce
Department does. I have much to learn about, and, should the Senate
confirm my nomination, I pledge that, as Secretary, I will seek your
advice and pursue a collaborative relationship that takes full
advantage of your collective expertise.
The American people expect us to work together, especially during a
time when so much is at stake and so much is uncertain.
I'm no stranger to handling difficult challenges in difficult
times. I have the scars from the lessons learned to prove it.
I am truly excited for the opportunity to work with the employees
of the Commerce Department, American businesses large and small, this
Committee, and the American people in rebuilding our economy. If
granted the privilege of becoming America's next Commerce Secretary, it
will be my relentless and abiding charge. I will not rest while there's
a lever left to throw.
Mr. Chairman, I thank you again for the opportunity to address your
committee. I look forward to your questions.
______
a. biographical information
1. Name (Include any former names or nicknames used): John Edgar
Bryson.
2. Position to which nominated: Secretary of Commerce.
3. Date of Nomination: June 16, 2011.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
Office: 2244 Walnut Grove Avenue, Rosemead, CA 91770.
5. Date and Place of Birth: July 24, 1943; New York, NY.
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).
Louise Henry Bryson--Retired from Lifetime Entertainment
Services. She previously served as Chair of KCET, the Los
Angeles public television station, and currently serves on the
Board of KPCC, a public radio station in the greater Los
Angeles region. She is a Board member for a number of Capital
Group investment funds. The Capital Group is an investment
management firm headquartered in Los Angeles. Children: Julia
Easton Bryson--35; Jane Templeton Bryson--31; Ruth Randall
Bryson--28; Kathleen Louise Bryson--22.
7. List all college and graduate degrees. Provide year and school
attended.
Yale Law School--J.D., 1966-1969.
Freie Universitaet Berlin--1965-1966.
Stanford University--B.A., 1961-1965.
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.
Retired Chairman and Chief Executive Officer (consulting),
Edison International, Rosemead, CaliforniaAug--2008 to present.
Chairman and Chief Executive Officer, Edison International,
Rosemead, California--Apr. 2008-July 2008.
Chairman, President and Chief Executive Officer, Edison
International, Rosemead, California--Jan 2000-Apr. 2008.
Chairman of the Board, Southern California, Edison Rosemead,
California--Jan. 2003-Jun. 2007.
Chairman and Chief Executive Officer, Edison International and
Southern California Edison, Rosemead, California--Oct. 1990-
Jan. 2000.
Executive Vice President & Chief Financial Officer, Southern
California Edison, Rosemead, California--Jan. 1985-Oct. 1990.
Senior Vice President, Law and Finance, Southern California
Edison, Rosemead, California--Feb. 1984-Dec. 1984.
Partner, Law Firm of Morrison & Foerster, San Francisco,
California--Dec. 1982-Jan. 1984.
President, California Public Utilities Commission, San
Francisco, California--Jan. 1979-Dec. 1982.
Chairman, California State Water Resources Control Board,
Sacramento, California--Apr. 1976-Jan. 1979.
Visiting Faculty, Stanford Law School, Stanford, California--
Jan. 1977-June 1979.
Attorney, Davies, Biggs, Strayer, Stoel & Boley, Portland,
Oregon--Mar. 1975-Apr. 1976.
Co-Founder and Attorney, Natural Resources Defense Council, New
York, NY--1970; Washington, D.C.--1970-1972; Palo Alto, CA--
1972-1974--Sep. 1970-Dec. 1974.
Law Clerk, Judge Stanley A. Weigel, U.S. District Court, San
Francisco, California--1969-1970.
Law Clerk, Wilmer Cutler and Pickering, Washington, D.C.--
Summer 1968.
Intern, Agency for International Development Department of
State, Washington, D.C.--Summer 1967.
Intern, Office of Congressman Edith Green Subcommittee on
Higher Education, U.S. House of Representatives, Washington,
D.C.--Summer 1965.
9. Attach a copy of your resume. A copy is attached.
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 5 years.
Member, California Commission for Jobs & Economic Growth National
Petroleum Council, 2004-2008.
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 5 years.
Advisory Board, Deutsche Bank Americas, 2008 to present.
Advisory Board, Ostendo Technologies, Inc., 2009 to present.
Board of Directors, The Boeing Company, 1995 to present.
Board of Directors, The Walt Disney Co., 2000 to present.
Board of Directors, The California Endowment, 2003 to present.
Board of Directors, W. M. Keck Foundation, 1996 to present.
Board of Directors, Council on Foreign Relations, 1992-2002;
Member, 1985 to present.
Board of Directors, Public Policy Institute of California, 2008
to present; Board Chair, 2011 to present.
Board of Directors, Coda Automotive, Inc., 2008 to present.
Board of Directors and Chairman of the Board, BrightSource
Energy, 2010-2011.
Board of Trustees, California Institute of Technology
(Caltech), 2005 to present; Chairman, Audit and Risk Management
Committee, 2010-2011.
Board of Overseers, Keck School of Medicine of the University
of Southern California, 1999 to present; Chairman of the Board,
2010 to present.
Board of Overseers, The Huntington, 1991 to present.
Member, Pacific Council on International Policy, 1994 to
present; Co-Chair, 2003 to present; Founding Co-Chair, 1994.
Senior Advisor, Kohlberg Kravis Roberts & Co. (KKR), 2008 to
present.
Senior Advisor, Global Solar Center, 2009 to present.
Board of Directors, Electric Power Research Institute (EPRI),
2007-2008; Advisory Board, Palo Alto, CA, 1980-1982.
Board of Directors, Western Asset Income Fund, 1986-2006
(Formerly Pacific American Income Shares, Inc.)
Board of Directors, Edison Electric Institute, 1991-2002;
Executive Committee, 1993-2008; Electric Transportation Task
Force--Chair, 2007-2008; Chairman, 1998-1999; First Vice
Chairman, 1997-1998; Second Vice Chairman, 1996-1997.
Board of Directors, Electric Drive Transportation Association
(EDTA), 2008-2010; Co-Chair, 2009-2010.
12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
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 handicap.
Member, Council on Foreign Relations, 1985 to present.
Member, The Brookings Institution, 1994 to present.
Member, Pacific Council on International Policy, 1994 to
present.
Member, National Commission on Energy Policy (NCEP), April
2007-December 2010.
Member, Atlantik-Briicke Int'l Advisory Council, March 2008 to
present.
Member, American Academy of Arts & Sciences, April 2011 to
present.
Member, U.N. Secretary-General's Advisory Group on Energy and
Climate Change (AGECC), 2009-2010.
Member, United States Business Roundtable, 1994-2002.
Member, The Business Council, 1993-2001.
Member, California Business Roundtable, 1992-2008.
Member, California Commission for Jobs and Economic Growth,
2004-2008.
Member, E7 (an organization of eight largest electric utilities
in G7 countries; Edison International represented the U.S.),
1992-2001.
Member, Town Hall of California, 1992-2008.
Member, National Transportation Policy Project (NTPP), November
2007-2009.
Member, Sunset Club, 1989-2011--(men's club that meets
periodically).
Member, Los Angeles Country Club, 1991 to present.
Member, The Valley Club of Montecito, 2005 to present.
Member, California Club, 1990 to present
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.
Yes, I was appointed to the California Public Utilities Commission
and the California State Water Resources Control Board. No outstanding
debt exists as a result of these appointments.
14. Itemize all political contributions to any individual campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period.
10/2010--Brown for Governor 2010--$2,000
10/2010--Friends of Jane Harman--$2,000
9/2010--John Spratt for Congress--$500
7/2010--Brown for Governor 2010--$1,000
5/2010--Hector de la Torre for Insurance Commissioner--$1,000
11/2009--Hector de la Torre for Insurance Commissioner--$500
8/2009--Feinstein for Senate--$2,400
6/2009--Jerry Brown 2010--$2,000
6/2009--Re-elect Mayor Foster 2010--$500
6/2008--Jerry Brown 2010--$2,000
4/2008--Baucus for Senate--$2,300
6/2007--Friends of Jane Harman--$1,000
6/2007--Citizens for Arlen Specter--$1,000
6/2007--Friends of Jane Harman--$1,000 (Louise Bryson)
5/2007--Friends of Bob Foster--$650
5/2007--Feinstein for Senate--$1,000
4/2007--Powerpac of the Edison Electric Institute--$2,000
4/2006--A Lot of People Support Jeff Bingaman--$2,000
2/2006--Westly for Governor 2006--$2,500
9/2005--Friends of Bob Foster--$600
9/2005--Friends of Bob Foster--$600 (Louise Bryson)
8/2005--Friends of Dick Lugar--$2,000
5/2005--Feinstein for Senate--$1,000
12/2004--Brown for Attorney General--$5,000
9/2004--Mike Machado for State Senate--$500
6/2004--Hagel for Senate--$1,000
6/2004--Bob Hertzberg for a Great L.A.--$1,000
2/2004--Feinstein for Senate--$1,000
4/2003--Feinstein for Senate--$2,000
9/2002--Steve Westly for Controller--$1,000
12/2001--Bill Leonard for Board of Equalization--$500
10/2000--Feinstein 2000--$1,000 (Louise Bryson)
NOTE: In addition, I made monthly contributions to the Edison
InternationalPAC in amounts less than the threshold, approximately
$416.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.
American Academy of Arts and Sciences (elected in 4/2011) Yale
Law School--Award of Merit (2010).
Stanford University Exchange Scholarship--1 year as a student
at the Freie University of Berlin (1965-66).
College scholarship from Brown Shoe Company (aka Buster Brown
Shoes); ten students from around the U.S. selected (1961).
Recognition as among the outstanding graduates of Cleveland
High School in Portland, OR (2010).
16. Please list each book, article, column, or publication you have
authored, individually or with others.
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.
I have given numerous speeches. There are some in which I did not
retain copies nor do I have records of the dates or places. Below are
those I am aware of:
Climate One. ``Least Cost Paths to Climate Reduction''. San
Francisco, CA. March 26, 2010.
International Energy Conference. ``Integrated Solutions''. New
York, NY. September 1, 2009.
California Institute of Technology. Talk on Movement Toward
Carbon-Free Energy. Pasadena, CA. May 27, 2009.
University of California-Berkeley Energy Symposium. Talk on
Reducing Carbon Emissions. Berkeley, California. March 2010.
CERA Week Conference. ``California Energy Market: The
Misleading Calm, Before the Storm''. February 12, 2004.
Stanford University. Talk on How California Sees the World.
Palo Alto, CA. January 12, 2007.
American Bar Association. Personal Reflections on Surviving
California's Energy Crisis. Los Angeles, CA. November 4, 2005.
Pacific Pension Institute Winter Roundtable. Laguna Beach, CA.
February 25, 2011.
Australia-U.S. Dialogue on Sustainable Cities. Hollywood, CA.
January 19, 2011.
Effectiveness of Energy-Saving Policy Workshop. Beijing, China.
May 7, 2010.
Sustainability Conference at Pomona College. Pomona, CA.
January 28, 2009.
Electric Drive Transportation Association Conference.
Washington, D.C. December 4, 2008.
Woods/Precourt Affiliate Conference at Stanford University.
Palo Alto, CA. September 12, 2008.
Lehman Bros. Council on Climate Change/Science/Technology/
Solutions Panel. New York, NY. December 7, 2007.
National Association of Regulatory Utility Commissioners CEO
Roundtable on Energy Efficiency. Anaheim, CA. November 14,
2007.
Morgan Stanley Global Electricity & Energy Conference. New
York, NY. March 16, 2006.
Commencement Remarks for UCLA Anderson School of Management.
Los Angeles, CA. June 6, 2006.
Additionally, I have given many speeches on Southern California
Edison and Edison International and its work. At the company's annual
meetings each year from 1991 to 2008, I provided the shareholders a
summary update on the company-its challenges, achievements, its
outstanding employees, and some thoughts about future prospects. In
addition, I provided a written letter to shareholders in each of the
company's Annual Reports during the years I was the Chairman and CEO. I
have also authored a limited number of editorials which I have done my
best to identify through a review of my personal files and searches of
publicly available electronic data bases. I have located the following:
``California must prepare for climate change,'' Sacramento Bee,
November 21, 2010, Opinion, Pg. El, written with William K.
Reilly.
``From the sandbox to the laboratory,'' San Gabriel Valley
Tribune, Opinion, July 20, 2009.
``California Missed a Big Opportunity,'' Wall Street Journal,
April 11, 2001, Page 19.
``The state needs to act now to prevent blackouts later.'' Los
Angeles Times, December 20, 2000, Opinion, Page 9.
``Keeping our eyes on the ball,'' Utility Business, March 2000,
Pg. 16.
``Let us now praise what government does well,'' The Record
(Bergen County, NJ), December 3, 1997, Opinion, Pg. L09,
written with John Adams.
``Skepticism about government is healthy, cynicism is not,''
Plain Dealer (Cleveland, Ohio), December 2, 1997, Opinion, Pg.
9B, written with John Adams.
``Perspective on government; Give credit for what works--a lot;
Environment and energy sectors find agreement on the success of
clean water and clean air legislation,'' Los Angeles Times,
November 26, 1997, Opinion, Page 7, written with John Adams.
``Perspectives on schools; Wiring our children for success; now
last in computers per pupil, California must outfit its youth
to compete in tomorrow's electronic world,'' Los Angeles Times,
January 22, 1997, Opinion, Page 9, written with Wendy Lazarus.
``Electric technologies and electric transportation,'' Public
Utilities Fortnightly, May 15, 1992, Vol. 129 No. 10, Pg. 76.
``Survival strategies for the `90s,'' Public Utilities
Fortnightly, September 1, 1991, Vol. 128 No. 5, Pg. 11.
``Change is in the wind--and the sun, energy, conservation and
new technologies will burgeon,'' Los Angeles Times, May 19,
1991, Opinion, Page 5.
17. 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.
Testimony before the House Committee on Energy and Commerce
subcommittee on Energy and Air Quality on Facilitating the Transition
to a Smart Electric Grid, May 3, 2007.
Testimony before the Senate Committee on Energy and Natural
Resources on Interim Limitations on the Cost of Electric Energy, March
15, 2007.
18. 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?
These remain difficult times for the American people, even as the
economy has improved over the last 2 years. More than 2 million new
jobs have been created since early 2010, but far too many Americans
continue to be unable to find work.
I believe what Americans expect from their leaders is for them to
wake up every morning with a sense of urgency about this crisis.
They're depending on this Administration and this Congress to figure
out what to do about the uncertainty and fear that so many hard-working
Americans and their families are experiencing.
That's why I'm passionate about this opportunity. The Commerce
Department is a catalyst for job creation and economic growth, and if
given the privilege of serving as Secretary, that will be my highest
priority.
As the Chairman and Chief Executive Officer of Southern California
Edison and its parent company, Edison International, I had the
opportunity to lead, for nearly 18 years, a large electricity company
that created and added jobs and supplied millions of people with
electric power. I guided Edison through the California electricity
crisis, a time of great uncertainty and diminished resources. That
experience may have relevance now during a time when government is
similarly being asked to do more with less.
If confirmed, I would hope to bring to the role of Secretary of
Commerce my experiences from earlier stages of my career, when I was
asked to take the lead roles at California independent state agencies.
At the California State Water Resources Control Board and then at the
California Public Utilities Commission, I faced first an historic
drought and the oil price spikes and shortages of 1979-81. With the
outstanding employees of those agencies, we found paths, and where
needed, made changes, to work those crises through to sound
resolutions.
It is vital to constantly maintain deep engagement with America's
business community--the large businesses and small businesses, the long
term businesses and the start-up entrepreneurs--as our economy pushes
forward to turn the corner. I've been fortunate to serve on the boards
of some of America's most successful companies, such as Disney and
Boeing, as well as smaller, more entrepreneurial companies. I
understand the concerns of businesses large and small, from diverse
sectors of the economy, and hope to reach out to America's business
leaders based on that understanding and mutual respect. They're on the
economic front lines every day, and what American businesses are
experiencing on the ground can serve as an early warning about bumps in
the road toward our economic recovery. If confirmed, I will work hard
to help relay their proposals for enhancing their businesses and
building their work forces to the President.
The ideas that will continue to fuel this recovery will come from
the private sector, and if confirmed as Commerce Secretary, it will be
my job to communicate what I hear to President Obama, his key advisors
and the members of this Committee, and to be an advocate for business
in White House policy discussions.
19. 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?
If confirmed, it would be my responsibility to ensure that the
Commerce Department is well-managed. Continuous improvement was a key
value and goal in my work at Edison. While I would have much to learn
about the management, depth, performance levels and accounting controls
at the Department, if confirmed, I would have an intense focus on
further improvement--both within the agency and in how we work with
other departments.
Prior to becoming Edison's CEO, I served as its Chief Financial
Officer. Most recently, until just last week, I served as the Chairman
of the Audit and Risk Management Committee at the California Institute
of Technology. In these roles, I was responsible ensuring that these
large, complex organizations were adhering to strict accounting
standards and internal controls. If confirmed, I would hope to draw
upon these experiences to ensure sounds management practices at the
Department of Commerce.
One important lesson I've taken with me is that while one cannot
hope to be able to anticipate all of the challenges that lie ahead, if
you build a culture focused on continuous improvement, you will
approach those challenges from a position of strength. If confirmed, I
would focus on continuing improvement in both capable management and in
excellent accounting at Commerce.
At Edison, we came together throughout the company to get better at
what we did and we strengthened our commitments to the values of
integrity, excellence, respect, continuous improvement and teamwork. If
confirmed, I would seek to build on what Secretary Locke has advanced
at Commerce and would want to ensure that those values are built
consistently there.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
The top challenge facing the Department is the top challenge facing
the American people: There are too many people out of work and not
enough jobs. As Commerce Secretary, it will be my top priority to do
everything I can to help change that. It's the charge President Obama
has given me. It's what the American people expect.
To that end, President Obama set a goal of doubling U.S. exports by
2015. Meeting that goal will mean millions of jobs for Americans. The
good news is that we're on track, but there's still much more to do.
Only 1 percent of U.S. businesses export and of those that do, nearly
60 percent export to just one market. I will use every lever at my
disposal to improve those numbers and push the agency to think
creatively about ways we can approach persistent challenges, and about
new partnerships we can forge with the private sector to amplify our
efforts.
As for the second major challenge facing the Department--the severe
weather experienced by many parts of the country this spring is an
urgent reminder of why it's critical we make sure NOAA's satellite
program, especially the polar satellites, is fully funded and meeting
internal deadlines to ensure continuity of service. What's at stake is
the continued reliability of U.S. weather and climate forecasting.
While important changes to NOAA's polar satellite program have been
made over the last 2 years--changes that will improve management,
control costs and increase the likelihood of a successful launch--there
remains a risk that without consistent, high-quality oversight, there
will be a significant gap in weather forecasting and information. We
can't allow that to happen.
Finally, the U.S. Patent and Trademark Office's patent backlog must
be reduced. Significant progress has been made over the last 2 years.
It is my understanding that the backlog has been reduced by 10 percent
even as patent applications have risen by 5 percent. But more must be
done. If America is to take advantage of the extraordinary talent of
its people, it has to remove the obstacles in front of its
entrepreneurs and the people working in its labs so that they can more
efficiently translate their ideas into the products that improve our
competitiveness and create jobs.
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.
I will receive deferred compensation from Edison International
Inc., The Boeing Company, Walt Disney Company, and Wells Fargo. I also
participate in a 401(k) plan through Edison International, and,
pursuant to prior agreement with the company, receive estate and
executive financial planning (for a five-year period beginning August
2008), retiree medical (for me and my spouse for life), and life
insurance.
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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Commerce's
Designated Agency Ethics Official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Department's designated agency ethics official and that
has been provided to this Committee. I am not aware of any other
potential conflicts of interest.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Commerce's
Designated Agency Ethics Official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Department's designated agency ethics official and that
has been provided to this Committee. I am not aware of any other
potential conflicts of interest.
5. Describe any activity during the past 10 years 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.
As part of my official duties with Edison International, I took a
consistent interest in the legislation that could bear on the company
and its customers. Each year, the company took positions on a number of
pieces of potential legislation, most but not all of that at the State
level. Where the legislation was minor in its impact, I was not
involved in formulating the company's position. When, as in the
California Power Crisis of 2002, the effects on the company and our
customers were major, I was involved with others on signing off on
positions we should take. In the most important legislative issues, I
met from time to time with legislators to explain our views. I never
became a lobbyist at either the Federal or the state level. In general,
most of the interaction with legislators and with legislative staff was
carried out by our public affairs staff and by others retained as
lobbyists by the company.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Commerce's
Designated Agency Ethics Official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Department's designated agency ethics official and that
has been provided to this Committee. I am not aware of any other
potential conflicts of interest.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain.
A complaint was made against me to the California State Personnel
Board regarding a hiring issue during my time with the Public Utilities
Commission. It was found to have no merit.
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
offence? If so, please explain: No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
In various civil cases brought by plaintiffs against Southern
California Edison and other corporations, I was named as a defendant
along with others, including Directors and other senior officers, in
initial filings. To my best recollection, in most of those cases, my
name was later dropped. In a very few, I was deposed. I recall no civil
cases that resulted in a negative judgment or verdict. I am aware of no
litigation brought against me personally.
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? Yes.
2. Will you ensure that your department/agency does whatever it can
do 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.
______
Resume of John E. Bryson
Employment
Retired Chairman and Chief Executive Officer, Edison International,
Rosemead, California, August 2008-Present
Chairman and Chief Executive Officer, Edison International,
Rosemead, California, April 2008-July 2008
Chairman, President and Chief Executive Officer, Edison
International, Rosemead, California, January 2000-April 2008
Chairman of the Board, Southern California Edison, Rosemead,
California, Jan. 2003-June 2007
Chairman and Chief Executive Officer, Edison International and
Southern California Edison, Rosemead, California, Oct. 1990-Jan. 2000
Executive Vice President and Chief Financial Officer, Southern
California Edison, Rosemead, California, Jan. 1985-Oct. 1990
Senior Vice President, Law and Finance, Southern California Edison,
Rosemead, California, Feb. 1984-Dec. 1984
Partner, Law Firm of Morrison & Foerster, San Francisco,
California, Dec. 1982-Jan. 1984
President, California Public Utilities Commission, Jan 1979-Dec.
1982
The CPUC regulates electric, gas, water and telephone utilities
and trucking, rail, rapid transit and inter-city bus services
in California.
Chairman, California State Water Resources Control Board, Apr.
1976-Jan. 1979
The Board administers California's water pollution control and
water rights programs.
Visiting Faculty, Stanford Law School, Stanford, California, Jan.
1977-June 1979
Attorney, Davies, Biggs, Strayer, Stoel & Boley, Portland, Oregon,
March 1975-April 1976
Co-Founder and Attorney, Natural Resources Defense Council, Sept.
1970-December 1974
NRDC is a national environmental action group with offices in
New York, Washington, D.C., Palo Alto and San Francisco, CA,
and Beijing, China.
Law Clerk, Judge Stanley A. Weigel, U.S. District Court, San
Francisco, California, 1969-1970
Education
Yale Law School--J.D., 1966-1969
Board of Editors, Yale Law Journal
Assistant in Instruction (1968-1969)
Freie Universitaet Berlin, 1965-1966
Recipient of Stanford Exchange Scholarship
Stanford University--B.A., 1961-1965
Graduation with Great Distinction
Phi Beta Kappa
President, Sophomore Class
Recipient of Woodrow Wilson Fellowship for Graduate Study
Current Associations
Advisory Board, Deutsche Bank Americas, October 2008-Present
Advisory Board, Ostendo Technologies, Inc., October 2009-Present
Board of Directors, The Boeing Company, 1995-Present
Board of Directors, The Walt Disney Co., 2000-Present
Board of Directors, The California Endowment, 2003-Present
Board of Directors, W. M. Keck Foundation, 1996-Present
Board of Directors, Council on Foreign Relations, 1992-2002;
Member, 1985-Present
Board of Directors, Public Policy Institute of California, 2008-
Present; Board Chair, 2011-Present
Board of Directors, Coda Automotive, Inc., 2008-Present
Board of Directors & Chairman of the Board, BrightSource Energy,
2010-2011
Board of Trustees, California Institute of Technology (Caltech),
2005-Present
Board of Overseers, Keck School of Medicine of the University of
Southern California, 1999-Present; Chairman of the Board, 2010-Present
Board of Overseers, The Huntington, 1991-Present
Member, The Brookings Institution, 1994-Present
Member, Pacific Council on International Policy, 1994-Present; Co-
Chair, 2003-Present; Founding Co-Chair, 1994
Member, National Commission on Energy Policy (NCEP), April 2007-
December 2010
Member, Atlantik-Brucke Int'l Advisory Council, March 2008-Present
Senior Advisor, Kohlberg Kravis Roberts & Co. (KKR), August 2008-
Present
Senior Advisor, Global Solar Center, 2009-Present
Member, American Academy of Arts & Sciences, April 2011-Present
Selected Past Associations
Board of Directors, Electric Power Research Institute (EPRI), 2007-
2008; Advisory Board, Palo Alto, CA, 1980-1982
Board of Directors, Western Asset Income Fund, 1986-2006; (formerly
Pacific American Income Shares, Inc.)
Board of Directors, Edison Electric Institute, 1991-2002; Executive
Committee, 1993-2008; Chairman, 1998-1999; First Vice Chairman, 1997-
1998; Second Vice Chairman, 1996-1997; Electric Transportation Task
Force--Chair--2007-2008
Board of Directors, Electric Drive Transportation Association
(EDTA), 2008-2010; Co-Chair, 2009-2010
Board of Directors, Times Mirror Company, 1991-2000
Board of Directors, H. F. Ahmanson & Co., 1997-1998
Board of Directors, Executive Service Corps of Southern California,
1991-1996
Board of Directors, First Interstate Bancorp, 1991-1996
Board of Directors, Association of Edison Illuminating Companies,
1993-1996
Board of Directors, World Resources Institute, Washington, D.C.,
1982-1994
Board of Directors, Los Angeles Sports Council, 1991-1994
Board of Directors, Children NOW, 1992-1994
Board of Directors, Rebuild LA, 1992-1994
Board of Directors, The Planetary Society, 1992-1994
Board of Directors, The Nature Conservancy, 1991-1993
Board of Directors, Los Angeles County Museum of Art, 1991-1992
Board of Directors, L.A. 84 Foundation, 1993-Present; (formerly
Amateur Athletic Foundation of Los Angeles)
Board of Trustees, Research to Prevent Blindness, 2002-2004
Board of Trustees, Stanford University, 1991-2001
Board of Trustees, The United States-Indonesia Society, 1994-2000
Board of Trustees, Polytechnic School, 1990-1996
Board of Trustees, California Environment Trust, 1986-1994
Board of Trustees, Claremont Graduate School and University,
Center, 1986-1992
Board of Governors, The Music Center of Los Angeles County, 1990-
1992
Executive Committee, National Association of Regulatory Utility
Commissioners, 1980-1982
Advisory Board, UCLA School of Public Policy & Social Research,
1999-2003
Advisory Committee, President's Advisory Committee for Trade Policy
and Negotiations, 1994-2001
Advisory Council, California Environmental Technology Partnership,
1992-___
Chairman, Los Angeles/Pasadena Bid Committee, World Cup Soccer,
1994, 1991-1993
Member, U.N. Secretary-General's Advisory Group on Energy and
Climate Change (AGECC), 2009-2010
Member, United States Business Roundtable, 1994-2002
Member, The Business Council, 1993-2001
Member, California Business Roundtable, 1992-2008; Chairman, 1996-
1998; Vice Chairman, 1993-1995
Member, California Commission for Jobs and Economic Growth, 2004-
2008
Member, Governor's Council of Economic Policy Advisors, 1993-1999
Member, E7 (an organization of eight largest electric utilities in
G7 countries; Edison International represented the U.S.), 1992-2001
Member, Claremont University Center and Graduate School Board of
Visitors, 1997-1998
Member, California Council on Science and Technology, 1992-1995
Member, The Conference Board, 1992-1994
Member, National Commission on the Environment, 1991-1992
Member, MALDEF, 1991-1992
Member, Presidio Council, 1991-1992
Member, California Water Rights Law Review Commission, 1997-1979
Member, California Pollution Control Financing Authority, 1976-1979
Member, Town Hall of California, 1992-2008
Member, National Transportation Policy Project (NTPP), November
2007-2009
Personal
Birthday: July 24, 1943, New York, New York
Family: Married to Louise Henry Bryson, four daughters
Residence: San Marino, California
The Chairman. Thank you, Mr. Bryson.
And before we go to questions, obviously we want to hear
from Mr. Garcia.
STATEMENT OF TERRY GARCIA, DEPUTY SECRETARY OF COMMERCE-
DESIGNATE, DEPARTMENT OF COMMERCE
Mr. Garcia. Thank you, Mr. Chairman, Ranking Member
Hutchison, and members of the Committee.
It's an honor before me appear again before this committee
in a confirmation hearing, this time as President Obama's
nominee to be the Deputy Secretary of the Department of
Commerce. I'm grateful for the opportunity to serve.
I also want to thank the members and staff of this
committee, who met with me over the last several weeks, and, if
confirmed, I look forward to working with all the members of
the Committee.
As my record demonstrates, I'm deeply committed to public
service. I'm fortunate to have had the opportunity to serve our
nation on several occasions over the last two decades.
Growing up in Jacksonville, Florida, my parents taught me
the relevance and importance of public service. My dad served
in the Navy, and for more than 35 years worked for the Postal
Service. My mother was a civilian employee of the Navy and the
Coast Guard for more than 30 years.
With me today, I'd like to introduce my wife, Mary, who has
graciously consented to the pay cut I'm going to take, if
confirmed.
[Laughter.]
Mr. Garcia. And my two sons, Jake and Alex, and my mother,
Marcelle Garcia.
Senator Hutchison. Would you raise your hands, please, so
we can see you? Thank you.
Mr. Garcia. Among other duties, the Deputy Secretary is the
chief operating officer of the department. The Deputy Secretary
also acts as the Secretary's principal adviser and surrogate in
a department that has one of the broadest mandates of any
Federal agency.
My varied public and private sector background, my
managerial experience, and my familiarity with significant
activities of the Department, affirmatively qualify me to carry
out the duties and responsibilities of Deputy Secretary.
My experience has prepared me well and provided significant
perspective for the management and policy challenges inherent
in this position.
For the last 11 years, I have been Executive Vice President
at National Geographic, a diversified media organization with
worldwide operations and a clearly defined scientific and
educational mission. My colleagues there and I have been
required to navigate through a complex, rapidly changing, and
highly competitive environment.
As Executive Vice President, I'm a member of the executive
management committee and have broad management responsibilities
and discretion, which require me to interact with all divisions
of the company and oversee global programs that are essential
to maintaining our competitive advantage. I've acquired
extensive experience and relationships with national and
international organizations, and government institutions and
leaders. I've represented the organization negotiating business
arrangements at the highest levels of government and business
in more than 55 countries.
Before joining National Geographic, I was Assistant
Secretary of Commerce for Oceans and Atmosphere, and 3 years
prior to that, general counsel of NOAA. In those roles, I
participated in all major policy decisions of the largest
agency in Commerce and acquired a sound understanding of its
programs and budgets.
Throughout those years, my actions were dictated by my firm
belief that the government's environmental stewardship
responsibilities can and must be harmonized with the private
sector's legitimate need for certainty and sustainable economic
growth.
Prior to entering government, I spent 15 years in the
private sector representing corporate, banking, and other
business interests as a partner in two major national law
firms. I represented financial institutions in all aspects of
their operations, including regulatory matters, and audit and
financial management.
From this practice, I understand first-hand the impact of
regulation, the burden it can place on businesses, and the need
for a balanced approach in developing regulatory policy.
Most recently, as a commissioner on the National Commission
on the BP Deepwater Horizon Oil Spill, I, along with my fellow
commissioners, dealt with issues of utmost importance to the
economy and our energy future. Our work was characterized by
bipartisan collaboration and a firm dedication to uncovering
the truth. I'm also pleased to tell you that we did something
that very few Presidential commissions can lay claim to: our
report was on time, unanimous, and under-budget.
If confirmed, I will have an unwavering commitment to the
core mission of the Department of Commerce. That mission--to
ensure and enhance economic opportunity for all Americans by
helping create jobs and promoting innovation and long-term
competitiveness of American companies--has never been more
urgent, relevant, or central to our collective well-being. This
includes working to double U.S. exports by 2015; ensuring that
U.S. companies can compete on a level playing field around the
world, and that our trade partners comply with the full terms
of our trade agreements; supporting continued efforts to
improve the Patent and Trademark Office's operations and
services; and promoting wise stewardship of our natural
resources.
Additionally, if confirmed, I will work to ensure
implementation and maintenance of effective internal controls
and procedures at the department. Effective management and
accounting controls are critical to the success of any
enterprise, but especially an organization as diverse and
complex as the Department of Commerce.
I intend to work closely with the department's inspector
general and will ensure that his office can effectively carry
out its mission.
Mr. Chairman and members of the Committee, if confirmed as
Deputy Secretary, I will work with you in a collaborative and
constructive manner to develop practical solutions to our
nation's economic and environmental problems.
Thank you again for this opportunity to appear before you
and for your consideration of my nomination. I look forward to
responding to any questions.
[The prepared statement and biographical information of Mr.
Garcia follow:]
Prepared Statement of Terry Garcia,
Deputy Secretary of Commerce-Designate, Department of Commerce
Thank you, Chairman Rockefeller, Ranking Member Hutchison, and
members of the Committee. It is an honor for me to appear again in a
confirmation hearing before this distinguished Committee, this time as
President Obama's nominee to be Deputy Secretary of the U.S. Department
of Commerce. I am grateful to the President for the opportunity to
serve. If I am confirmed, I will look forward to confronting and
addressing the challenges that will ensue. I thank the Members of this
Committee and the members of your staff who were gracious enough to
meet with me over the last several weeks and I anticipate meeting with
the remaining Members of this Committee.
As my record demonstrates, I am deeply committed to public service.
I am fortunate to have had the opportunity to serve our Nation on
several occasions over the last two decades. I hope to add to that
record. Growing up in Jacksonville, Florida, my parents taught me the
relevance and importance of public service. My dad served in the Navy
and for more than 35 years worked for the Postal Service. My mother was
a civilian employee of the Navy and the Coast Guard for 30 years. With
me today are my wife, Mary, my two sons, Jake and Alex and my mother,
Marcelle Garcia.
Among other duties, the Deputy Secretary is the Chief Operating
Officer of the Department of Commerce, overseeing more than 36,000
employees and a FY 2011 budget of $ 7.9 billion. The Deputy Secretary
also acts as the Secretary's principal advisor and surrogate in a
Department that has one of the broadest mandates of any Federal agency.
My varied private and public sector background, my substantial
managerial experience and my particular familiarity with significant
activities of the Department of Commerce affirmatively qualify me, I
believe, to carry out the duties and responsibilities of the Office of
the Deputy Secretary. My experience as Executive Vice President at
National Geographic Society (NGS), as Assistant Secretary of Commerce
for Oceans and Atmosphere and NOAA General Counsel, and as a partner in
two major national law firms have prepared me well and provided
significant perspective for the management and policy challenges
inherent in this position.
For the last 11 years, I have been Executive Vice President at
National Geographic, a diversified media organization with world-wide
operations and clearly defined and essential scientific and educational
missions. My colleagues there and I have been required to navigate
through a complex, rapidly changing and highly competitive environment.
As is the case with most major media companies, in recent years we have
been impacted by the introduction of swiftly evolving technologies
which have proved disruptive to National Geographic's core publishing
and television businesses. As Executive Vice President, I have broad
management responsibilities and discretion which require me to interact
with all divisions within National Geographic and to oversee global
programs that are critical to maintaining the organization's
competitive advantage and distinction in the market. In that capacity,
I have acquired extensive experience and relationships with national
and international organizations, government institutions and leaders. I
have traveled to over 55 countries, representing National Geographic
and negotiating business arrangements at the highest levels with
government and business interests. I am a member of the National
Geographic executive management committee and have participated in all
its major business and policy decisions over the last 11 years.
Prior to joining National Geographic, I was the Assistant Secretary
of Commerce for Oceans and Atmosphere and Deputy Administrator of NOAA
from 1997-1999. From 1994 to 1997, I served as NOAA's General Counsel.
In these two roles I participated in all major policy decisions of the
largest agency in the Department of Commerce and acquired a sound
understanding of its programs and budgets. Throughout those years my
actions were dictated by my firm belief that the government's
environmental stewardship responsibilities can and must be harmonized
with the private sector's legitimate need for certainty and sustainable
economic growth.
Prior to entering government service, I spent 15 years in the
private sector representing corporate, banking and other business
interests as a partner in two major national law firms. I represented
financial institutions in all aspects of their operations, including
Federal and state regulatory and legislative issues, corporate and
securities matters, audit and financial management, mergers and
acquisitions, bank operations, and enforcement and administrative
proceedings. In addition, at the law firm of Hughes Hubbard & Reed in
Los Angeles, I established the firm's west coast banking practice and
was Chairman of the West Coast Financial Services Group. I understand
first-hand the impact of regulation and the burden it can place on
businesses and the need for a balanced approach by the Federal
Government in developing regulatory policy.
In addition, I have acquired valuable experience and insight as a
result of my service as a trustee, director or advisor to a diverse
group of domestic and international academic and nonprofit
organizations. Most recently as a Commissioner on the National
Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling,
I along with my fellow commissioners dealt with issues of utmost
importance to our nation's economy, environment and energy future. I am
proud to say that we effectively carried out the President's directive
to investigate the root causes of the Deepwater Horizon explosion and
make recommendations on how to prevent and mitigate a similar incident
in the future. Our work was characterized by bipartisan collaboration
and a firm dedication to uncovering the truth. I am also pleased to
tell you we did something few Presidential commissions could claim-our
report was on time, unanimous and under-budget.
If confirmed, I will have an unwavering commitment to the core
mission of the Department of Commerce. That mission--to ensure and
enhance economic opportunity for all Americans by helping create jobs
and promoting innovation and long-term competitiveness of American
companies large and small--has never been more urgent, relevant or
central to this nation's collective well-being. This includes: working
to double U.S. exports by 2015 as part of the President's National
Export Initiative; ensuring that U.S. companies can compete on a level
playing field around the world and that our trading partners comply
with the full terms of our trade agreements; supporting continued
efforts to improve the Patent and Trademark Office's operations and
delivery of services; and promoting the wise stewardship of our natural
resources. If confirmed, I will work tirelessly in support of that
mission.
Effective management and accounting controls and procedures are
critical to the success of any enterprise. This is particularly true
for an organization as large, diverse and complex as the Department of
Commerce. If confirmed, I will: communicate through words and actions,
the critical importance of effective internal controls and procedures;
ensure, through active and appropriate oversight and direction, the
effective implementation and maintenance of internal controls; demand
excellence and accountability Department-wide; require ongoing
evaluation of internal controls and procedures for their effectiveness
in addressing existing and emerging risks/threats; motivate and empower
Department management and staff to systematically improve effectiveness
and efficiency and achieve performance excellence; and whenever
necessary, ensure that appropriate corrective measures are instituted.
I intend to work closely with the Department's Office of Inspector
General and will do all in my power to ensure that the OIG can
effectively carry out its mission to promote efficiency and
effectiveness and to detect and prevent waste, fraud, abuse and
mismanagement in the programs and operations of the Department of
Commerce.
Mr. Chairman and members of the Committee, if confirmed as Deputy
Secretary of Commerce, I will work with you in a collaborative and
constructive manner to develop practical and necessary solutions to our
Nation's economic and environmental challenges. My record over 35 years
demonstrates this approach and my work ethic. Thank you again for this
opportunity to appear before you today and for your consideration of my
nomination. I would be pleased to respond to any questions you may
have.
______
a. biographical information
1. Name (Include any former names or nicknames used): Terry Donato
Garcia.
2. Position to which nominated: Deputy Secretary of Commerce.
3. Date of Nomination: May 16, 2011.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
Office: 1145 17th St. NW, Washington, DC 20036.
5. Date and Place of Birth: March 27, 1953; Jacksonville, Fla.
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).
Spouse: Mary Talley Garcia, Consultant (Information Services);
Children: Alex Donato Garcia--26; Jake Brian Garcia--23.
7. List all college and graduate degrees. Provide year and school
attended.
American University, BA, 1975.
George Washington University Law School, JD, 1980.
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.
New Directions, Legislative Representative, 1976-1978.
International Development Cooperation Agency, Legislative
Consultant, 1979-1980.
Manatt, Phelps, Rothenberg & Tunney, Associate, 1980-1983.
Fried, Kings Holmes & August, Attorney/Partner, 1983-1991.
Hughes Hubbard & Reed, Attorney/Partner/Chair, Financial
Services Group, 1991-1994.
Manatt, Phelps & Phillips, Attorney, Partner, 1994.
National Oceanic and Atmospheric Administration, General
Counsel, 1994-1997.
National Oceanic and Atmospheric Administration, Deputy
Administrator/ Department of Commerce, Assistant Secretary of
Commerce for Oceans and Atmosphere, 1997-1999.
National Geographic Society, Executive Vice President, 1999 to
present.
9. Attach a copy of your resume. A copy is attached.
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 5 years.
Commissioner, National Commission on the BP Deepwater Horizon Oil
Spill and Offshore Drilling, 2010-2011.
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 5 years.
Institute for Exploration/Mystic Aquarium (Sea Research
Foundation), Mystic, Connecticut. Member of Board of Trustees.
Term: 2005 to present.
Amazon Center for Environmental Education and Research (ACEER),
West Chester, PA Member of Board of Directors. Term: 2003 to
present.
Harte Research Institute for Gulf of Mexico Studies, Texas A&M
University, Corpus Christi, TX. Member Board of Advisors. Term:
2004 to present.
U.S. National Committee for the Census of Marine Life.
Committee, Washington, D.C. Member. Term: 2001 to present.
National Marine Sanctuary Foundation, Silver Spring, MD.
Trustee Emeritus. Former Chair and member of Board of Trustees.
Term: 2001-2007.
Ocean Advisory Committee, World Economic Forum. Member. Term:
2009 to present.
Committee on Exploration of the Seas, National Academy of
Sciences (National Research Council, Division of Earth and Life
Studies, Ocean Studies Board). Member of Committee. November
2001-November 2003. Report ``Exploration of the Seas''
published Nov 2003.
National Academy of Public Administration. Study Panel
(examining National Marine Fisheries Service's regulatory,
financial and organizational structure and effectiveness),
20012002. Report published 2002.
Saltire Prize Advisory Committee, Scottish Government,
Edinburgh, Scotland, UK. Member. Term: 2009 to present.
12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
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 handicap.
In addition to those listed in response to question 11 above, I am
also a member of:
Cosmos Club, Washington, D.C., 2003 to present.
District of Columbia Bar, 1980 to present.
State Bar of California, 1982 to present.
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. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period: None.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements: None.
16. Please list each book, article, column, or publication you have
authored, individually or with others. 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
Federal Regulation of Banking, Warren Gorham and Lamont,
published 1980.
Protecting the Corporate Whistle Blower, No. 2, Vol.5, Journal
of Corporation Law, Winter 1980.
``U.S. Regulators Clamp Down in Wake of Scandals,'' American
Banker, April 23, 1992.
U.S. Accession to the Law of the Sea Convention, Issue 3, Vol.
VII, Georgetown International Environmental Law Review, Summer,
1995.
National Academy of Public Administration, Study Panel
(examining National Marine Fisheries Service's regulatory,
financial and organizational structure and effectiveness),
2001-2002. Report published 2002.
Committee on Exploration of the Seas, National Academy of
Sciences (National Research Council, Division of Earth and Life
Studies, Ocean Studies Board). Member of Committee. November
2001-November 2003. Report ``Exploration of the Seas''
published Nov. 2003.
Op-Ed, ``A legacy to match T.R.'s, in the ocean,'' The
Providence Journal, written with Joshua Reichert, September 16,
2008.*
---------------------------------------------------------------------------
\*\ This Op-Ed was originally titled ``The President's Ocean
Legacy.'' The editor of this publication changed the title.
Op-Ed, ``Bush's Ocean Protection Plan Needs More Teeth,''
Seattle PI, written with Joshua Reichert, September 10,
---------------------------------------------------------------------------
2008.*
Op-Ed, ``Oceans: Our finite, fragile and valuable resources,''
Saipan Tribune, written with Joshua Reichert, September 2,
2008.*
Op-Ed, ``Ensuring an ocean legacy,'' Miami Herald, written with
Joshua Reichert, August 29, 2008.*
Letter to the Editor, ``The `Daimon,' '' The Chronicle of
Higher Education, June 27, 2008.
Letter to the Editor, ``Saving a Piece of History,'' Los
Angeles Times, April 19, 2006.
Letter to the Editor, ``The Situation with Salmon,'' The
Washington Post, April 28, 1999.
BP Deepwater Horizon Oil Spill Commission Report published
January 2011.
Speeches
As Deputy Administrator and General Counsel of NOAA, I gave
numerous speeches in my official capacity. I did not retain copies nor
do I have records of the dates and places of such speeches.
As Executive Vice President of National Geographic, I frequently
make remarks at exhibit openings, conferences and other events
regarding the work of National Geographic. I typically do not use
written speeches. Below are recent events at which I have delivered
remarks:
American Association for the Advancement of Science. Moderator
of Panel on Gulf Oil Spill. Washington, D.C. May 5, 2011.
Montreal Science Center. NGS exhibition opening. Montreal,
Canada. April 28, 2011.
Melbourne Science Museum. Tutankhamun Exhibition Opening.
Melbourne, Australia. April 6, 2011.
Scottish Renewables Conference. Presentation on NGS coverage of
renewable energy issues. Glasgow, Scotland. March 23, 2011.
Economic Club of Florida. Presentation of Findings of National
Commission on BP Deepwater Horizon Oil Spill and Offshore
Drilling. Tallahassee, Fla. January 14, 2011.
National Press Club. Presentation of Findings of National
Commission on BP Deepwater Horizon Oil Spill and Offshore
Drilling. Washington, D.C. January 11, 2011.
Florence 2010, ``Cultural Landscapes and Heritage.''
Presentation of NGS work in field of cultural resource
conservation. Florence, Italy. November 18, 2010.
Jane Goodall Institute Global Leadership Awards. Remarks in
connection with accepting Global Leadership Award on behalf of
NGS. Washington, D.C. October 11, 2010.
NG Channel India Green Conclave. Opening remarks at NG Channel
event. New Delhi, India. October 22, 2010.
World Water Day Conference. Opening remarks. National
Geographic, Washington, D.C. March 22, 2010.
Tallberg Forum. Panel presentation on NGS ocean exploration
activities. Tallberg, Sweden, June 24, 2009.
McKinsey & Company Conference for McKinsey clients regarding
climate change issues. Presentation on NGS coverage of climate
issues. San Francisco, CA. September 8, 2008.
UBS Symposium on Global Philanthropy. Panel presentation on NGS
activities. Singapore. September 12, 2008
17. 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.
House Transportation and Infrastructure Committee, Subcommittee
on Coast Guard and Maritime Transportation and Subcommittee on
Water Resources and Environment, February 11, 2011, BP Oil
Spill Commission recommendations.
House Committee on Resources, Subcommittee on Fisheries
Conservation, Wildlife and Oceans, February 25, 1999,
Reauthorization of Coastal Zone Management Act.
House Committee on Commerce, Subcommittee on Energy and Power,
September 25, 1998, Federal Hydroelectric Relicensing Process.
Senate Committee on Commerce, Science, and Transportation,
Subcommittee on Oceans and Fisheries, May 20, 1998, Harmful
Algal Blooms.
Senate Committee on Natural Resources, Subcommittee on Water
and Power, October 30, 1997, FERC Hydroelectric Relicensing
Procedures.
House Committee on Transportation and Infrastructure,
Subcommittee on Water Resources and Environment, October 29,
1997, Superfund Reauthorization and Reform Legislation.
House Committee on Resources, Subcommittee on Fisheries
Conservation, Wildlife and Oceans, October 9, 1997, Oversight
Hearing on Pfiesteria and its Impact on Our Fishery Resources.
Senate Committee on Commerce, Science, and Transportation,
October 7, 1997, Nomination to be Assistant Secretary of
Commerce for Oceans and Atmosphere.
House Committee on Government Reform and Oversight,
Subcommittee on Human Resources, September 25, 1997, Pfiesteria
and Public Health: The State and Federal Response.
Senate Committee on Environment and Public Works, September 23-
24, 1997, Endangered Species Recovery Act.
Senate Committee on Environment and Public Works, September 4.
1997, Superfund Reform and Reauthorization.
House Committee on Resources, Subcommittee on Fisheries
Conservation, Wildlife and Oceans, March 13, 1997, African
Elephants--Coral Reefs.
Senate Committee on Environment and Public Works, Subcommittee
on Superfund, Waste Control and Risk, March 5, 1997.
18. 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 believe my deep and varied private and public sector background,
my substantial managerial experience and my particular familiarity with
significant activities of the Department of Commerce affirmatively
qualify me to be Deputy Secretary. My success as a senior executive at
National Geographic, as Assistant Secretary of Commerce for Oceans and
Atmosphere and NOAA General Counsel and, as a partner in two major
national law firms have prepared me well for the management and policy
challenges inherent in this position.
For the last 11 years, I have been a senior executive at National
Geographic Society (NGS), a well known diversified media organization
with world-wide operations and a clearly defined scientific and
educational mission. NGS operates in a rapidly changing and highly
competitive environment, one that has been impacted in recent years by
the introduction of rapidly evolving technologies which have proved
disruptive to NGS's core publishing and television businesses (as is
the case with all major media companies). As Executive Vice President,
I have broad management responsibilities and discretion which require
me to interact with all divisions within NGS and to oversee global
programs that are critical to maintaining the organization's
competitive advantage and distinction in the market. In that capacity I
have acquired extensive experience and relationships with national and
international organizations, government institutions and leaders. I am
a member of the executive management committee and have participated in
all major business and policy decisions over the last 11 years.
Prior to joining NGS, I was the Assistant Secretary of Commerce for
Oceans and Atmosphere and Deputy Administrator of NOAA from 1997-1999.
From 1994 to 1997, I served as NOAA's General Counsel. In these two
roles I participated in all major policy decisions of the largest
agency in the Department of Commerce and acquired a sound understanding
of its programs and budgets. As Deputy Administrator I exercised broad
and substantial management responsibility.
Prior to entering government service, I spent 15 years in the
private sector representing corporate, banking and other business
interests as a partner in two major national law firms. I represented
financial institutions in all aspects of their operations, including
Federal and state regulatory and legislative issues, corporate and
securities matters, audit and financial management, mergers and
acquisitions, bank operations, and enforcement and administrative
proceedings. I frequently dealt with the most senior executives in
these organizations. In addition, at the law firm of Hughes Hubbard &
Reed in Los Angeles, I established the firm's west coast banking
practice and was Chairman of the West Coast Financial Services Group.
Additionally, I have acquired valuable knowledge, experience and
insight as a result of my appointment to and service on the National
Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling
and my service as a trustee, director or advisor to a diverse group of
domestic and international academic and nonprofit organizations.
First and foremost, I believe service to our country is a worthy
goal and one of the highest achievements for any of us. I have always
felt the obligation and responsibility to put forth my best efforts to
serve broad societal goals. Fortunately, my background has afforded me
that opportunity and led me twice to leave successful private sector
careers for government service. I believe that the Department of
Commerce mission to ensure and enhance economic opportunity for
Americans by creating jobs and promoting innovation and long-term
competitiveness, has never been more relevant or central to our
collective well being.
19.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?
Effective management and accounting controls and procedures are
critical to the success of any enterprise. This is particularly true
for an organization as large, diverse and complex as the Department of
Commerce. If confirmed, I will: communicate through words and actions,
the critical importance of effective internal controls and procedures;
ensure, through active and appropriate oversight and direction, the
effective implementation and maintenance of internal controls; demand
excellence and accountability Department-wide; require ongoing
evaluation of internal controls and procedures for their effectiveness
in addressing existing and emerging risks/threats; motivate and empower
Department management and staff to systematically improve effectiveness
and efficiency and achieve performance excellence; and whenever
necessary, ensure that appropriate corrective measures are instituted.
I have extensive experience leading and managing large
organizations with global operations. As noted in my response to
Question 18, I have been a senior executive at National Geographic for
11 years and for 5 years prior to this I was Assistant Secretary of
Commerce for Oceans and Atmosphere and Deputy Administrator of NOAA.
Prior to entering government service I was a partner in two major
national law firms representing corporate, banking and other business
interests. Activities have encompassed negotiation of mergers and
acquisitions, consulting with and advising audit committees,
development and execution of strategic plans, trademark and
intellectual property protection, employee training, advertising,
marketing and promotion, scientific grant administration, print and
digital media production and development and launch of new products and
services. In the course of my career, I have had extensive experience
in audit and financial management practices.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
Because I am not currently employed at the Department, I cannot
presume to know all of the challenges it currently faces. That being
said, the overarching priority and challenge, of course, is to
effectively advance the Department's mission to ensure and enhance
economic opportunity for Americans by creating jobs and promoting
innovation and long-term competitiveness. Based on my understanding and
outside observations, some of the more immediate management challenges
facing the Department are:
1. Improving management of major system acquisitions, such as
NOAA's environmental satellite program, and contract operations
in order to avoid or minimize cost overruns, schedule delays
and reduced performance capabilities.
2. Strengthening the Department's IT security to enable
effective defense of its systems and information.
3. Effective implementation of reforms to improve operations of
key bureaus, including PTO operations and delivery of services.
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.
I am invested in the Federal TSP, the National Geographic Society's
401k and will be entitled to the National Geographic Society's pension
plan upon retirement.
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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Commerce's
Designated Agency Ethics Official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Department's designated agency ethics official and that
has been provided to this Committee. I am not aware of any other
potential conflicts of interest.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Commerce's
Designated Agency Ethics Official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Department's designated agency ethics official and that
has been provided to this Committee. I am not aware of any other
potential conflicts of interest.
5. Describe any activity during the past 10 years 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.
Commissioner, National Commission on the BP Deepwater Horizon Oil
Spill and Offshore Drilling. 2010-2011.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Commerce's
Designated Agency Ethics Official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Department's designated agency ethics official and that
has been provided to this Committee. I am not aware of any other
potential conflicts of interest.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain.
I am not aware of any such complaints.
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 of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
In 1997, I was involved in a small claims proceeding in LA
Municipal Court with the former tenant of my house in Los Angeles. The
matter involved a dispute over rent in the amount of $1,547.
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? 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.
______
Resume of Terry D. Garcia
Professional Experience
1999 to Present--National Geographic Society--Washington, D.C.
Executive Vice President--Responsible for management and
oversight of the Society's core mission programs, including
programs that support and manage more than 400 scientific field
research, conservation and exploration projects annually, the
Explorers-in-Residence and Emerging Explorers programs,
geography and science education programs, geography
competitions, development office, exhibitions, live events and
the mission media program, which includes the All Roads film
and photography program. Also responsible for the Society's
major global initiatives including the Genographic Project, an
effort to map the history of human migration.
Manage and direct all scientific field research, exploration
and education programs of the Society. Manage and direct
Society's SO state education program which seeks to strengthen
geography and science education in U.S. grades K-12. Member of
the Senior Management Committee, the Senior Editorial Council,
the Committee for Research and Exploration and the Conservation
Trust. Serve on Board of Governors of the National Geographic
Education Foundation.
1997 to 1999--National Oceanic and Atmospheric Administration--U.S.
Department of Commerce--Washington, D.C.
Assistant Secretary of Commerce for Oceans and Atmosphere;
Deputy Administrator of National Oceanic and Atmospheric
Administration--As Assistant Secretary managed and oversaw
NOAA, a 15,000 person agency which directs and coordinates U.S.
coastal, ocean and atmospheric programs, including the National
Ocean Service, the National Marine Fisheries Service, the
Office of Oceanic and Atmospheric Research, the National
Weather Service and the National Environmental Satellite, Data
and Information Service. Directed all ocean and coastal
programs of NOAA, including recovery of endangered species,
habitat conservation planning, natural resource damage
assessment (CERCLA, Clean Water Act and Oil Pollution Act),
clean water act implementation, trade and environment issues,
commercial fisheries management, nautical charting and marine
transportation, coastal zone management and national marine
sanctuaries. Oversaw operations of National Weather Service and
NOAA satellite program, including licensing of commercial
remote sensing satellite systems. Served as agency
representative on Interagency Global Positioning System
Executive Board and White House task forces on climate change,
trade and the environment, Clean Water Action Plan and the
President's NW Forest Plan. Co-chaired Department of Commerce
task force on trade and the environment. Served as Chairman of
Coastal America, an interagency effort to encourage federal,
state and private partnerships to protect and manage coastal
resources. Lead negotiator for Department of Commerce in the
acquisition of the Headwaters Forest from Pacific Lumber
Company.
1994 to 1997--National Oceanic and Atmospheric Administration--U.S.
Department of Commerce--Washington, D.C.
General Counsel--Managed legal staff of 150. As chief legal
officer of NOAA, provided legal and policy advice on all major
agency programs and initiatives. Oversaw effort to review and
streamline NOAA's regulatory programs resulting in elimination
or consolidation of approximately one-half of the agency's
regulations. Re-engineered Federal Government's approach to the
assessment and recovery of damages for injuries to natural
resources under the Oil Pollution Act of 1990. Led the
development of the natural resource damage assessment
regulations under the Oil Pollution Act of 1990 and the
implementation of the Exxon Valdez Oil Spill Restoration Plan
for Prince William Sound and the Gulf of Alaska. Principal
agency official in development of administration policy for
commercial remote sensing satellite systems. Led development of
secretarial order revising the operating relationship between
the Federal Government and Native American tribes in
implementing the Endangered Species Act. Successfully
negotiated on behalf of management a collective bargaining
agreement covering agency's staff attorneys. Developed and
implemented contingency plan for operation of critical agency
programs during 1995 government shut-down.
1994 (Jan) to 1994 (Sept)--Manatt, Phelps & Philips--Los Angeles
Partner--Represented financial institutions in all aspects of
their operations, including Federal and state regulatory and
legislative issues, corporate and securities matters, mergers
and acquisitions, bank operational matters and enforcement and
administrative proceedings. . Extensive experience in
regulatory and supervisory issues affecting foreign and
domestic banks, bank holding companies, savings institutions
and non-bank providers of financial services. Advised and
counseled corporations, non-profit organizations and political
campaigns on state and Federal election and campaign law.
1991 to 1994--Hughes Hubbard & Reed--Los Angeles
Chairman, Financial Services Group (West Coast); Partner--
Established and developed a successful financial institutions
department and practice in the Los Angeles office of national
law firm. Responsible for development and supervision of the
practice as well as recruitment, hiring and training of
attorneys. Directed business development activities, including
design and presentation of seminars on international and
domestic banking issues. Represented financial institutions in
all aspects of their operations, including Federal and state
regulatory and legislative issues, corporate and securities
matters, mergers and acquisitions, bank operational matters and
enforcement and administrative proceedings. Advised and
counseled clients on Federal and state election and campaign
law matters.
1983 to 1991--Fried, King, Holmes & August--Los Angeles
Partner--Responsible for general corporate/securities and
regulatory representation of foreign and domestic banks, bank
holding companies and their affiliates. Directed training and
supervision of associate attorneys.
1980 to 1983--Manatt, Phelps, Rothenberg & Tunney--Washington, D.C.
and Los Angeles
Associate--Specialized in general corporate/securities and
regulatory representation of commercial banks, bank holding
companies and their affiliates.
1979 to 1980--International Development Cooperation Agency--
Washington, D.C.
Legislative Consultant--Advised new agency in establishment of
Legislative Affairs Office. Served as liaison with other
Federal agencies. Agency was responsible for oversight of U.S.
foreign economic development assistance programs, including
those administered by the Agency for International Development,
the Departments of Treasury, State and Agriculture, the Exim
Bank and the Overseas Private Investment Corporation.
1976 to 1978--New Directions--Washington, D.C.
Legislative Representative--Represented public interest
organization in foreign policy matters before Congress and
Executive Branch. Developed and implemented organization's
legislative initiatives involving U.S. economic development
assistance programs and U.S. participation in international
financial institutions.
Education
May 1980--Juris Doctor (With Honors), National Law Center,
George Washington University, Washington, D.C. Member, Journal
of International Law and Economics.
May 1975--Bachelor of Arts, International Relations, School of
International Service, The American University, Washington,
D.C.
Other Activities
National Commission on BP Deepwater Horizon Oil Spill and
Offshore Drilling, Commissioner, 2010-2011.
Institute for Exploration/Mystic Aquarium (Sea Research
Foundation), Mystic, Connecticut. Member of Board of Trustees.
Term: 2005 to present.
Amazonian Center for Environmental Education and Research
(ACEER), Member of Board of Directors. Term: 2003 to present.
Harte Research Institute of Gulf of Mexico Studies, Texas A&M
University. Member Board of Advisors. Term: 2004 to present.
U.S. National Committee for the Census of Marine Life,
Committee Member. Term: 2001 to present.
National Marine Sanctuary Foundation, Trustee Emeritus. Former
Chair and Member of Board of Trustees. Term: 2001-2007.
Ocean Advisory Committee, World Economic Forum, Member. Term:
2009 to present.
Committee on Exploration of the Seas, National Academy of
Sciences (National Research Council, Division of Earth and Life
Studies, Ocean Studies Board). Member of Committee. November
2001-November 2003. Report ``Exploration of the Seas''
published Nov 2003.
National Academy of Public Administration, Study Panel
(examining National Marine Fisheries Service's regulatory,
financial and organizational structure and effectiveness),
2001-2002. Report published 2002.
Saltire Prize Advisory Committee, Scottish Government, Member.
Term: 2009 to present.
Associations
The District of Columbia Bar (1980 to present)
State Bar of California (1982 to present)
Publications
Federal Regulation of Banking, Warren Gorham and Lamont,
published 1980.
Protecting the Corporate Whistle Blower, No.2, Vol.S, Journal
of Corporation Law, Winter 1980.
U.S. Regulators Clamp Down in Wake of Scandals, American
Banker, April 23, 1992.
U.S. Accession to the Law of the Sea Convention, Issue 3, Vol.
VII, Georgetown International Environmental Law Review, Summer,
1995.
National Academy of Public Administration, Study Panel
(examining National Marine Fisheries Service's regulatory,
financial and organizational structure and effectiveness),
2001-2002. Report published 2002.
Committee on Exploration of the Seas, National Academy of
Sciences (National Research Council, Division of Earth and Life
Studies, Ocean Studies Board). Member of Committee. November
2001-November 2003. Report ``Exploration of the Seas''
published Nov 2003.
Op-Ed, ``Ensuring an ocean legacy,'' Miami Herald, written with
Joshua Reichert, August 29, 2008.*
BP Deepwater Horizon Oil Spill Commission Report published
January 2011.
The Chairman. Thank you, Mr. Garcia.
Mr. Bryson, it may come as a surprise that you get the
first question.
It's actually very interesting, because although your
statement to the Committee didn't represent the force that you
presented to me when we were having a private meeting, which
was lengthy and extensive, and I felt in you, and feel in you,
a tremendous drive for success--I'll be honest with you, I
don't think we've had a decent Secretary of Commerce since Bill
Daley. They are very hard to pick out, and they're absolutely
crucial to the future of our country.
Now, on the one hand, I think you have tremendous drive;
you have tremendous executive experience; you can run circles
around most of us well, maybe not Frank, but virtually
everybody else on business. You know the deal. You know how to
put things together. You know how to make things work. You know
the country. You know the world. You know China. You know every
place there is. You've been to it, you know it.
So looking at it from a rational point of view, you're a
gift to this country, should you be confirmed. And I, for one,
believe that you will talk with a very strong and a very
powerful voice in an Administration that needs your voice much
more than it realizes, which may be why the President asked you
to do this job.
Now that's one side. The other side is the so-called
controversy. We always find controversy, and sometimes it's
done for purely political purposes, and sometimes it's done for
policy reasons. That has to be dealt with.
So the question I'm going to ask you, is that although you
have bought coal from West Virginia, Wyoming, and many other
places, which is what we like to see, on the other hand, your
position with respect to the NRDC and also cap-and-trade, et
cetera, price on carbon, whatever, is an anathema to the people
of my state.
Now, there are many things that are an anathema to the
people of my state and to the people of other states. Everybody
has their issues. There are 16 states that produce coal; there
are, therefore, 34 states that do not. And if you're confirmed,
you're going to be a national Secretary of Commerce.
So let me just sort of ask you bluntly, and hopefully this
will trigger an outpouring of the defense that I thought you
were going to make. That is, do the people of West Virginia who
are obsessed with the future of coal, as am I, do they have
reason to worry about your being Secretary of Commerce?
Do they feel that, as Secretary of Commerce, you will do
something which reflects what you did 40 years ago or whatever,
and is that something that I need to worry about? Or is that
something which people will talk about and write about and
write opinions in papers about, but which will not really touch
on the fundamental work of your secretaryship, should you get
it?
Mr. Bryson. Thank you, Senator. I, maybe I cut some things
out of the prepared remarks. But, let me get right at this.
The facts of the Grant Town project that we had and we
built, and that I went so often to West Virginia for, must have
been 12, 13, 14 years--largest taxpayers, as I understand it,
in Marion County--I mean, that wasn't an NRDC project. That was
waste coal in--what, I am a believer in, in energy, is diverse
sources of fuel, including, particularly, domestic sources of
fuel. I think energy security requires that. I think a sound
electric system needs that kind of diversity.
So, it's true that I was a founder of NRDC. It's even true
that some things that NRDC did in the energy efficiency area,
with people I can identify, I thought was very good.
There's no question that NRDC was not supportive of coal.
They filed a lawsuit against our project--I mean, we had bought
all these projects, all the non-nuclear projects that
Commonwealth Edison had in the Greater Chicago--we bought them
all. We operated them all. We improved them, frankly,
environmentally. But--and we still have those projects, and
we're still proud to have those projects. You know, we have the
nuclear plants, so we're quite a large owner- operator of
nuclear plants. We're proud of that. That's not an NRDC
positive. NRDC filed the lawsuit----
The Chairman. I understand. I'm not just focused on the
NRDC.
Mr. Bryson. Oh, I'm sorry. I thought, that's what I
understood the question to be. I'm sorry.
The Chairman. Well, it was part of the question. But, it's
the general posture of people saying, ``Oh, he's an
environmentalist, and therefore he can't, he won't be helpful
to us,'' or, ``He'll fight against coal.'' Now you're going
into something called the Secretary of Commerce, if you're
confirmed.
Mr. Bryson. Yes.
The Chairman. That's an enormous subject. And I have other
questions to ask you about it. But, I want to try to put to
rest, if it is possible, that you being the Secretary of
Commerce, should that happen, and the interests of the people
of West Virginia, for the most part who are concerned about the
future of coal, and natural gas, that they will not have to,
quote, ``worry about you.'' Now, you understand--I'm not
phrasing the question properly. But you understand exactly what
I'm saying, and I'd like a really straight, direct answer.
Mr. Bryson. Well, I believe they would find me a strong and
supportive Secretary of Commerce. I believe, for example, that
the manufacturing base--we talked a little about that--we've
got to work with those small, medium- size, sometimes small
town, sometimes totally rural companies, and find ways--we have
means to do these things--to convey to them the steps they can
take. But also, to convey to them the reason why they, we would
want them to develop confidence that making further
investments--for example, for exports--is in their business
interest, and serves West Virginia, serves the people they live
with.
The Chairman. Mr. Bryson, I'm over my time. I just want you
to speak directly to--either your environmental past, your
environmental present, or whatever it is--and say why, if that
is the case, you do not feel that is a threat to the people of
West Virginia? I don't want to hear about creation of small
business, big business. I was glad to hear about Marion County,
Grantsville, all of that. But, they will be worrying, as we are
having this hearing. They'll be worrying, ``Is this person
going to be one of those people who tries to crush our
existence?'' I want to hear from you.
Mr. Bryson. Yes, and I don't think they will be worried,
because my guess is, you know, you know, if, the imperative now
is enhancing our businesses, building them stronger here in the
U.S., and thereby creating jobs. And, that is my focus. That's
what the President asked me to do. That's what I will do.
The Chairman. He did not ask you that, to expedite the
demolition of the part of coal which is represented in our
energy supply?
Mr. Bryson. Not at all. No. He was clear, and I'm clear. In
fact, I think you can only do a job like this with
prioritization. I will be focused. And I'll be focused on
that--on jobs.
The Chairman. Thank you, sir.
Senator Hutchison.
Senator Hutchinson. Well, first let me say that I am
pleased that the nominee for Commerce Secretary has had
business experience, and I think the President needs more
people around him with business experience, and you fulfill
that role. And I do hope that what you said in your opening
statement, which is that you will be a cheerleader and advocate
for the regulatory reform that we all agree needs to be done,
but which, frankly, has not been done so far, you will fill
that role. And I think that's a good thing.
Now, along the lines of what the Chairman has started, with
the coal industry, I have concerns about some of the things you
have said regarding energy regulations. And in a speech where
you came out for cap-and-trade legislation, you said that it is
a tax, and that regulations that penalize energy producers for
producing more energy than needed by the government were the
best way to reduce energy consumption and greenhouse gases.
So, the question is, having talked to so many business
people, and the cost of energy being one of their toughest
issues and one of their biggest concerns, are you anti-energy?
Are you for taxing energy--raising the cost, and letting that
have the effect of hurting our businesses, while gaining the
purported result of having more investment in other forms of
energy?
Mr. Bryson. Absolutely no. The, I think that it draws on
this cap-and-trade question, if I have it right.
The reason that we in the electric utility industry--
substantially every company--there were a very, I, maybe I can
pick out one or two--wanted in the end to have a sensible cap-
and-trade bill, as we saw it at the time. It was that, we
couldn't make the investments we needed to make in the
infrastructure of our systems for our customers under the kind
of massive uncertainty that existed at the time.
So, we utilities got together--I had been Chairman of the
Edison Electric Institute. I had been on the executive
committee for 10 years. I worked with others that were senior
positions in the industry. I was by far not the only one. We
worked together, and we presented to the House--as Senator
Feinstein said, I'd actually worked with others to try to find
a path that preserved the coal. What we needed was time, and
with time we felt we could work a low-cost potential transition
into things like clean coal, into things like natural gas with
greater utilization in industry. Lots of things that we thought
we could achieve. But we needed some predictability, and it was
chaos at that time.
Now, quite a large number of other businesses across the
U.S., as I think you know, likewise, made that choice at that
time. So, Dow Chemical, DuPont, Shell Oil, and many others, we
all recognized--to my knowledge, no one's raising that now. I
certainly would not raise that as the Secretary of Commerce.
Senator Hutchinson. Do you think the corporate tax rate in
America, being the second highest on the globe, is too high?
And are you going to advocate for lowering the corporate tax
rate to make us more competitive, including energy industries?
Mr. Bryson. Yes, I would, I would strongly believe in that.
I know, the President has, is working with some group of
people--honestly, I don't know about that--on a tax proposal.
But, I agree. I think, what I take from your question, and that
is, we need to simplify our taxation in this country, and we
need to put our businesses in a less taxed position.
And so, just, if I can give one anecdote: When we did this
privatization investments that we did in 12 or 13 countries
around the world, we ended up in this phenomenon in which then,
our investments, and the earnings and the revenues from those
investments, were parked overseas, and we had to pay a whopper
of tax to bring them home. So, we had an incentive to invest
not back in the United States, but overseas. I think those
things should be changed.
Senator Hutchinson. Let me just ask one last question. And
that is, you're obviously a member of the Boeing board.
Mr. Bryson. Yes.
Senator Hutchinson. And you made a very good statement
about regulatory excess. Do you think the stretch that the NLRB
is making to try to keep Boeing from choosing where it
manufactures its products is the overreach of regulation?
Mr. Bryson. I think it's not the right judgment. I mean, I
wasn't thinking of it so much as regulation. It seemed like an
unexpected kind of legal proceeding that none of us on the
board--we thought we were doing the right thing for the
country, and we looked hard at maintaining the jobs in
Washington and expanding the jobs elsewhere, to the benefit of
the country, and never thought, for example, of putting those
jobs outside of the U.S.
Senator Hutchinson. Well, that's a very important point
that you're making. And I hope that, because of your
experience, not only doing what's right for jobs in America,
but also unabashedly representing the shareholders, for whom
you hold a trust, that you will speak out against that kind of
overreach that is unprecedented, really. I don't think I've
seen anything like it ever. And I hope when you're confirmed
that you will take that on as the spokesman for business and
commerce in our country, that we've got to stop this. And if
you will be the spokesman that you have said you will be, this
should be Exhibit A.
Mr. Bryson. Thank you.
Senator Hutchinson. Thank you.
The Chairman. Thank you, Senator Hutchison.
Senator Lautenberg.
Senator Lautenberg. Thanks, Mr. Chairman.
Mr. Bryson, you made mention of the fact that rules and
regulation ought to be--I don't know the precise language, but
the thought was definitely there--that you would be looking at
this with a degree, as you raised it here, a sort of question.
Well, I want to say this to you, sir--that it wasn't rule
or registration that killed the automobile industry when it
died. They were operating within the same parameters pretty
much that they're operating now, and they've come back strong
and very competitive.
I was just in France at an aviation conference, and Boeing
was there, and they strutted their stuff, and they showed that
their product was better than the others, and they weren't
hampered by rules and regulation. So, I submit to you, sir,
that if you see a rule and a regulation that you think has no
cost, no benefit, it's just an obstacle, would you be
embarrassed to say, ``Well, we're going to have to change
that?''
Mr. Bryson. I wouldn't be embarrassed at all.
Senator Lautenberg. OK.
Mr. Bryson. I think we have to do that----
Senator Lautenberg. Well, I just wanted to clear the air,
Mr. Bryson----
Mr. Bryson. I wouldn't be embarrassed the in slightest----
Senator Lautenberg.--because----
Mr. Bryson. Yes.
Senator Lautenberg.--the inference that it's rule and
regulation that are killing business, is baloney, you'll
forgive me. And it's often a trial balloon that really involves
other things. We need rules and regulations in a society that
functions with a degree of order. And the company that you were
associated with, the Edison Electric, the company I was
associated with, you're going to have 42,000 employees, I think
it is, the number in Commerce. The company I started with--two
guys, four working people, now has 45,000 employees that--we
worked from scratch, and we built an incredible company, with
the best record for growth of any company in America--10
percent or better.
So, I submit to you--a little more confidence in your
experience and your ability, and an ability to make decisions.
And you're, this isn't a popularity contest. When you're here,
you're sitting before a jury, and you have to present those
things that you think are going to help grow our commercial
opportunities at home and abroad. So, I would look to you to be
able to stir up your belief in things, and get the job done. I
think you can do it. You've got great experience, and we're
fortunate enough to have you here. And, if you were to be able
to get this job, to land this one, then you will have made a
great contribution to America's well-being. And you can't back
down, whether you're wearing a uniform or not. If you're a
member of the group, you've got to stand up for what's right.
And, I don't mean to lecture you. But I just want to be sure
that we, you know, we understand one another.
We know that changes in ocean chemistry caused by carbon
dioxide will affect our food supply, the health of our oceans.
Yet, research on ocean acidification is still in its infancy.
Now, I wrote a provision that became law in 2009 requiring NOAA
to lead an interagency effort to study the effects of ocean
acidification. Would you say here that you're going to continue
the administration's commitment to a better understanding in
addressing this growing point resulting from a change in
temperatures--or whatever the causes are--but, to make sure
that we try to restructure these things so that we don't lose
the opportunity that comes from an ocean that's pure, that has
coral alive, that is a place where fish and sea life gets its
growing strength? So, does that strike you as any kind of a
problem, to follow on there?
Mr. Bryson. No. I don't, I mean, you raise a very good
conversation--the ocean acidification issue.
Senator Lautenberg. Right.
Mr. Bryson. It's one that I'm not very familiar with. I
would like very much to sit down further, after this
confirmation----
Senator Lautenberg. OK. I would----
Mr. Bryson.--and understand it better. Yes. Yes.
Senator Lautenberg. I would tell you that therein lies an
enormous environmental problem.
Mr. Bryson. Yes.
Senator Lautenberg. Because ocean acidification is killing
coral all over the place. And, with coral out of existence, the
fish and the other sea life doesn't have a chance to find a
place to propagate and develop.
Mr. Chairman, thanks.
The Chairman. Thank you very much, Senator Lautenberg.
Senator Blunt.
Senator Blunt. Thank you, Mr. Chairman.
Mr. Garcia, I've decided that if I'm ever nominated for
anything, I want Mr. Bryson to be the other nominee that day.
[Laughter.]
Senator Blunt. And now for my questions for Mr. Bryson.
[Laughter.]
Mr. Bryson. Thank you, Senator.
Senator Blunt. And, I certainly respect and appreciate what
both of you have done--what you've done a National Geographic;
and what you've done in your career, Mr. Bryson. And it goes
well beyond energy executive, because of the boards you've
served on and all the other things you've done.
I don't think I agree fully with Mr. Lautenberg. I have,
he's made a lot more business decisions than I have, and I have
a lot of respect for him. But, I do think these regulations
matter. For instance, let's talk about the Boeing regulation a
little bit, the NLRB ruling. You were on that board. How long
were you on that board? I know you were on it until last week,
or the last couple of weeks.
Mr. Bryson. Yes. That's right. And I was the longest-
serving director, and I joined the board----
Senator Blunt. Well, that's probably all--were you on the--
--
Mr. Bryson.--1993, maybe.
Senator Blunt. 1993? Were you, you were on the board when
they made the decision to locate the new facility in South
Carolina, then?
Mr. Bryson. Yes.
Senator Blunt. And that was a unanimous board decision. And
I think Mr. Daley, Bill Daley, was also on that board at the
time. You were part of that decision?
Mr. Bryson. Yes.
Senator Blunt. I think this regulation matters a lot. I
think it, the message to everybody--you know, I'm from
Missouri, where we have a lot of Boeing employees.
Mr. Bryson. Yes. Yes.
Senator Blunt. We're glad to have them. We're not a right-
to-work state. But, I think one of the messages here is, if
you're in a right-to-work state, or you're coming to the United
States for the first time, until this is settled, that may be
one reason not to come to Missouri, because you can't move, you
can't put your second location somewhere that's not part of
that first location in a non-right-to-work state. I just think
this is one of the areas where a Secretary of Commerce--if
you're not fighting this attitude in any administration, nobody
is. You have to be the guy that says we've got to have more
certainty. Whether it's in regulatory efforts, or the taxing
efforts, or what the utility bill might be, all of those become
reasons not to take a risk. It's a lot easier to not put your
money on the table to see if you can lose it, than it is to put
it on the table and see if you can lose it. And, I think you've
got to be a real advocate for that.
And whether it's the EPA or--I agree with Senator
Hutchison, that the, this NLRB rule is something that, if
somehow the Congress wanted to enact this as a new national
standard, that's one thing--and I wouldn't be for it--but, to
have these rulemaking agencies think they can make these big
stretches into new areas of law is a real concern. And it
stands against the number one priority of the government of the
country today, which should be private sector job creation.
And, I mean, as a member of that board, do you have
particular concerns about how that decision by your board, well
taken and well entered into, has created this new set of
problems?
Mr. Bryson. I certainly hope not. I'll just say, the best
legal analysis I saw--and this was very carefully worked out.
By the way, it was very carefully worked out, as perhaps you
know, also with the State of Washington. I mean, this was, the
analysis I've seen says this legal initiative is not sound.
It's not based on any significant tradition in the law of
national labor relations. I am no expert on that, but we gave a
lot of attention to it. I think the position is sound that
Boeing took.
Senator Blunt. Well, I think it's fair to say, you are an
expert on corporate decisionmaking. You've been involved in a
lot of it. And you----
Mr. Bryson. Yes.
Senator Blunt.--know what it takes for these decisions to
be made. And you know how a little difference makes the
difference in whether you make the decision or not. And, in my
view, the advocacy of the risk-reward philosophy of capitalism
is a key job of the Secretary of Commerce. If you don't
understand risk-reward, and don't respect it as a driving
component of growing the economy, the economy doesn't grow. And
I think that's a lot of what we're seeing right now, is, this
lack of certainty creates incredible hesitancy, which means
nobody takes a chance. If nobody takes a chance, other people
don't get an opportunity that that chance would have provided
for them.
But, your comments, I appreciate your comments on the NLRB
regulation. I am concerned about a sense that the California
model is the right utility model for us to follow. And if you
are confirmed, I hope you and I can talk about that more.
Because I think looking at these kind of increases in rates--
not only they don't make us competitive, they drive these jobs
to countries that care a whole lot less about what comes out of
the smokestack than we do. And so, the overall goal,
environmental goal, is actually set back, instead of moved
forward, by policies that drive jobs from our country to other
countries.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Blunt.
Senator Snowe.
Senator Snowe. Thank you, Mr. Chairman.
Let's go back to what I was discussing earlier, because I
think it is so paramount in focusing on job creation. And in
fact, yesterday I was trying to describe an initiative that I
had offered two and a half years ago, to your predecessor,
which was to have a job creation coordinator because of the
disparate organizations and structures within the Commerce
Department, to centralize the focus and bring everybody forward
in a coordinated, synchronized fashion.
And the same is true in regulations. When I look at the
overall picture of what the Commerce mission is, and what the
reality is of the economy today, they're totally misaligned.
And I can go through all the numbers.
And, Senator, you did a great job in putting the mission
and the chart together.
If it's promoting job creation, you'll know the jobs
numbers. In fact, we are at a point where, since January of
2009 unemployment has fallen below 9 percent for 5 months only.
I mean, we know what we have to create--285,000 jobs a month in
the next 5 years to get back to pre-recession levels of 2007.
Economic growth for the first quarter is projected at 1.8
percent. Projected for this quarter, 2.3 percent.
If you look at your mission to strengthen the international
economic position of the United States, less that 1 percent of
U.S. businesses engage in exporting. Sixty percent of these
firms export to just one foreign nation. China will surpass us,
according to the IMF, in 2016--a mere 5 years from now. The
overall U.S. trade deficit in March was $45 billion. So, we're
importing more than we're exporting. And we talked yesterday
about how few of the manufacturers are exporting.
If you look at your mission to promote aggressive business
policies that help America's businesses and entrepreneurs, we
talk about the cost of regulations for small employers. If they
have 20 or fewer employees, it costs $10,500 more for small
businesses to comply.
A March 2011 report by the Manufacturing Institute on
education reform said at the height of the recession, 32
percent of manufacturers reported they had jobs going unfilled.
We have a huge skills gap.
Back in 1981, when we first passed the Research and
Development Tax Credit bill--and I was in the House at that
time--the United States of America had the most generous tax
treatment for research among all of the countries in the
Organization for Economic Cooperation and Development, the
OECD. Today, regrettably, we offer the 17th most generous
incentive for the private sector.
So, that's a picture. And I see a lot more in each of these
categories vis-a-vis the mission of Commerce. That's why you
have an opportunity to do something so important for the
President, and most especially, for the country, and using the
resources of your Department to bring it forward. I cannot
impress upon you enough--that's all you've heard here, and
echoing here today.
And that's why it gets back to one of the key issues of
regulatory reform. As Ranking Member of the Small Business
Committee, I cannot underscore enough the difficulty and the
barriers that regulations present to small businesses and large
businesses alike. I have talked to businesses of all sizes, all
across America and, of course, including my own in Maine. When
people say it doesn't matter--because I've argued this issue on
the Floor, and there's a lot of resistance to the notion of
regulatory reform. Just in this state of California,
regulations--just on the state level--cost $177 billion a year,
or $493 billion, if you count the indirect costs. That's the
equivalent of 3.8 million jobs in the state of California
alone. So, then you combine state with federal. And think about
the onerous burden that presents to businesses of all sizes
across this country.
That's why I hope you will use your voice and the force of
the office on the whole issue of regulations, and to the
President. I know that he's begun that effort most recently.
But, we also have to do it here. But we have to do it in a big
way, and it has to be consistent and coordinated. And we have
to demand accountability from agencies.
So, there's no one person in the offices of the Commerce
Department who is tasked with analyzing and assessing the
impact overall of these regulations on businesses. So, I would
urge you to consider that, and to make sure that you drive that
initiative, because it's so critically important.
And, I hope that you will do everything that you can, Mr.
Bryson, in that regard. And would that be one of your first
initiatives that you'll present to the President?
Mr. Bryson. Yes.
Senator Snowe. You hope, right?
Mr. Bryson. Yes. I mean, I've lived adverse regulation. In
this power crisis in California, if you, if I took even a few
steps on the respects in which it was driven to this crisis
through bad regulation, you would be shocked. Excuse me.
Senator Snowe. Mm-hm. Well, I appreciate that. And I
applaud you, because I think that is going to be really
important at a time that that voice needs to be heard here at
the Federal level, and most especially, from the department
that you will represent. So, thank you.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Snowe.
Senator Rubio, and then I have one quick comment.
Senator Rubio. OK. And I'll be brief, because I know a
vote's been called.
I just wanted to make a statement, or a comment, about
something we discussed. And it's, and all my other concerns
have been outlined here today in the questions and in the
opening statements.
But, just briefly, again, I hope something you will focus
on, both of you will focus on, and that is the issue of our
broken visa process that we have here in the country.
Clearly, America needs to have immigration laws. We can't
be the only country in the world that doesn't have them and
doesn't enforce them. And, I'm fully supportive of that.
On the other hand, it's important to note that our broken
visa process is hurting our economy in multiple ways.
Certainly, folks in the tourism industry will tell you that our
market share in tourism is suffering from the inability to get
folks to come here. I think people in business will tell you
they're struggling to get buyers into their trade shows or into
their warehouses and places of interest. Entrepreneurial--and
we should be looking and actively searching for ways to bring
entrepreneurs to this country to invest and create countries--
and create jobs. Certainly, folks in your home state, in
California and in other places, will tell you that in the high-
tech industries they're having workforce issues.
So, certainly, we have some deficiencies in the visa
programs that I hope can be addressed from a pro-business
perspective. And I hope that both of you will make that a
priority in your time that--we discussed that.
And, I just wanted to outline that, Mr. Chairman. Thank
you.
The Chairman. Thank you, Senator.
I have to leave for a vote, or a series of votes.
May I say, Mr. Bryson and Mr. Garcia. Particularly, Mr.
Garcia--first of all, I apologize. I mean, you're worthy of
7,412 different questions, and you didn't get one of them.
Mr. Garcia. I don't take offense, Mr. Chairman.
[Laughter.]
The Chairman. Friendly questions. Mr. Bryson, I don't know
what your schedule is, but I want to talk with you again. I
want to talk with you one-on-one. Is that a possibility? Are
you leaving town?
Mr. Bryson. No. I'll stay in town through Thursday of this
week, and if it would be helpful, I'll stay beyond that.
The Chairman. That's great. So, let's work that out.
Mr. Bryson. Thank you.
The Chairman. In the meantime, Senator Kerry is back.
Oh. Senator Klobuchar had a question.
Senator Kerry, have you voted?
Senator Kerry. No.
Senator Klobuchar. I haven't voted either. I can vote and
come back, though.
The Chairman. It's going to be hard to vote and come back.
All right. Which of you is more intense about asking a
question?
Senator Klobuchar. I could just do 2 minutes of questions,
if you'd like me to.
The Chairman. OK. Go ahead for 2 minutes.
Then, John, you.
Senator Klobuchar. OK.
I actually have a question of you, Mr. Garcia. We have many
workers that I think could do better if they were focused more
on retraining in technical colleges and those kinds of things.
Alexandria Tech in Minnesota has a 96 percent placement rate.
And I think that our education system needs to adjust to this
new economy, where it's not just your grandpa's Vo-Tech
anymore, that, actually, people who are getting 2-year degrees
are doing incredibly better than some people that are getting
4-year degrees. And, that our high schools should be working
better with the technical schools in terms of that focus.
Could you comment on that, and how the Department of
Commerce could help workers learn new skills when they get laid
off, or there are less jobs in the industry that they're in?
Mr. Garcia. Thank you, Senator.
There is no question that we need more, but also better,
jobs and a more skilled work force. The President has advocated
the STEM program, advocating Science and Technology Education
in this country. We need to educate the next generation of
scientists, engineers, and others who are going to occupy these
jobs that are critical to the advancement of this country's
economy and sustaining that economy.
So, there are a number of tools at Commerce that can be
used. I intend to take advantage of all of those tools. And,
like Mr. Bryson, my focus is going to be on jobs.
Senator Klobuchar. Thank you.
Mr. Bryson, I raised in my opening statement some questions
about the international tourism issue. And, how committed are
you to helping with this issue and pushing the State
Department, and working collaboratively with them, as well as
helping implement the Travel Promotion Act, over which the
Commerce Department has jurisdiction?
Mr. Bryson. I'm strongly, strongly in support of that. I
mean, I commend you and the others with whom you've worked.
But, I take it you've played a large role in that act.
And it seems to me almost somewhat obvious that we've got
to take that further. The revenues are so extraordinary. And we
have----
Senator Klobuchar. You're speaking like a businessman, Mr.
Bryson.
Mr. Bryson.--a beautiful country.
Senator Klobuchar. That's good. Because we think that it is
pretty obvious.
Mr. Bryson. Yes.
Senator Klobuchar. And, for some reason, we seem to be
running into bureaucratic snags in getting it done.
Mr. Bryson. I'm pleased that we're going to help out in the
Commerce Department.
Senator Klobuchar. OK. Very good. Very good.
My last question would just be, broadband. The, I have
found that in certain areas of our state, like northern
Minnesota--beautiful resort areas--they're at a competitive
disadvantage, because the resorts in Canada have more Internet
access. So, of course, people are booking there instead of
going to Grand Moray, or some of the beautiful communities on
the north shore.
And, could you just briefly talk--I know Senator Kerry has
to get to the vote--about your commitment to the broadband
expansion in this country?
Mr. Bryson. A strong, strong commitment. I think it's
essential. I think if we're going to be a country that gives
opportunities to everybody, we need to get to the rural
communities, we need to get to the smallest communities.
The reality is that broadband already has become a huge
location of commerce, and it will grow strikingly.
Senator Klobuchar. Very good.
Mr. Bryson. And, people in small communities deserve all
that opportunity.
Senator Klobuchar. That's correct. If they grew up in a
small town, they should be able to stay there.
Thank you very much, Mr. Chairman.
Mr. Bryson. I know something about that.
Senator Kerry [presiding]. Gentlemen, thanks a lot.
Mr. Garcia, it's been a tough afternoon.
Mr. Garcia. Yes, it's been rough.
[Laughter.]
Senator Kerry. I've been watching on the--but I suppose,
since you're going to be the deputy, you can just say ``ditto''
to everything.
[Laughter.]
Senator Kerry. That's a good way to get through it.
I've been listening, actually, back in my office, and I
heard a number of my colleagues, particularly, secretary--
secretary--Senator Blunt and some others refer to tax rates,
and to the lack of certainty. And I would say to my friends on
the other side of the isle--there's nobody here now, obviously,
and you don't have to answer this--but, it would help a lot to
provide certainty if we could get a little less ideological
rigidity, and get an agreement on the budget fast. I can't
think of anything that would help more. And the idea of turning
our heads on the experts' predictions that we need to get
something like $4 trillion of savings--about $3 trillion out of
policy and $1 trillion out of debt--and that everything they're
talking about now fall shy of that, the idea that anybody's
living up to a responsible challenge here, without revenue, is
simply absurd.
You don't have to comment on it. This isn't the Committee
for that. But, I will say, as my colleagues talk about
certainty--the certainty we could send to the marketplace if we
got a deal that was reasonable and rational, as we did under
President Reagan. When President Reagan, for whom Defense cuts
were an anathema, agreed to have 50 percent of the
sequestration come out of Defense, and 50 percent came out of
entitlements and domestic discretionary. That's rational.
What we're doing here, around here, right now is simply not
rational, and I wish our colleagues were here, because I
wouldn't hesitate to say this if they were. You can't do what
we have to do for the country without revenue. Plain and
simple. And we need to put it on the table and get it done,
because your task is going to be 20 times harder if we're
struggling to get this already fragile economy moving, and
we're not investing in infrastructure--which hasn't been talked
about here today. We're not investing in, the sort of the
basics of our, to break that down, air control system, our
rail, or transit, all these things that matter in getting
products to the marketplace.
So, I hope you're going to focus on those things
significantly. There's a lot to talk about, and we have the
votes on. It's tricky.
The other thing I want to straighten out is, I'm kind of
tired of hearing about the odorous tax rates that corporations
are paying in America, when in fact they don't pay those rates.
The effective tax rate in the United States among OECD
countries--about 30 nations--is about 14 to 18--midway to less
than midway. And I think people, you know, I mean, you know,
John Adams said, ``Facts are stubborn things.'' But, people
aren't entitled to their own facts. And a lot of folks around
here in Washington keep making them up, or sticking with their
own facts. And, it makes it very, very hard to proceed forward.
Now, as I said earlier, there are a lot of issues that fall
before this committee, and there are a lot of things--I wear
the hat as the Chair of the Communications Technology
Subcommittee, and we are working on privacy, and the whole
information management issue, and there's a lot to talk to you
about on that. But, I don't want to do that today. And I trust
that we're going to do it.
I do want to focus for a minute, if I can--I informed you I
would do this. And it's an issue of enormous concern to us.
Fishing in New England as a whole, from Maine all the way down
through New York, is an old-time, long-standing way of making a
living, and it's a huge part of our culture and history, and
our tourism, and it's a big thing. We have two of the largest
ports in the Nation for the landing of fish, in Gloucester and
in New Bedford. And so, but, the relationship--under the Bush
administration there were some excesses in terms of the
regulatory process that are still not yet rectified completely.
I want to give Gary Locke and his team credit, because they
worked very hard with us. And Jane Lubchenco's worked hard in
order to try to change this. And they've moved, and made a
number of different steps to try to build the relationship and
confidence of our fishermen. But, it is still fair to say we
have a distance to travel.
So, number one, I want to ask you, will you commit to
coming up to our state, spend a day, half a day, whatever you
can with us, to meet with our fishermen, bring people together,
and listen to them, and help us work through--I think one of
the best things we can do--Congressman Frank, Congressman
Tierney, others, have proposed this also--that we create a task
force that looks at the way in which regulations have been
applied, and see if we can't find a better, more simple, more
understandable, easier way of regulating the fisheries so that
the fishermen have confidence that the decisions are being
based on science, and common sense at the same time?
Mr. Bryson. Yes.
Senator Kerry. Good.
Mr. Bryson. Yes.
Senator Kerry. And we'd like to do that as soon as we can.
I know you've got a lot of things to, you know, when you get
sworn in, and, to get going on.
The second thing is, would you be willing to establish, I
guess under your own aegis, if you were to undertake to put
together this task force--not just come and visit, but
investigate both the economic and regulatory issues. One of the
problems we've had is, the Governor submitted important data to
the Secretary, and there are some difficulties in the
regulatory interpretation. And I respect that. The law is the
law. Maybe we have to change it. Maybe it doesn't, the law
doesn't always make sense, as you know from law school and from
practice. Maybe there are some things we could do, and we could
work together to tweak it. And, I'd just like to get a
commitment from you that we can really work to continue the
process that Secretary Locke put in place, and make progress.
Mr. Bryson. That sounds entirely sensible to me. Honestly,
I'm afraid I don't know that process. But I will learn that
process, and I will follow through.
Senator Kerry. Believe me, you will.
Mr. Bryson. I'm sure that's true.
Senator Kerry. Well, I appreciate that enormously. And I've
talked to you about a couple of other issues. Because we have
the vote on, I need to get there and not keep the vote from
being--the vote clock has expired, so I have to magically get
there with no time left and cast my vote.
So, you are, Secretary-designates and Under Secretary-
designates, you are saved by the votes here in the U.S. Senate.
And we look forward, and----
Mr. Bryson. Yes.
Senator Kerry.--if I had my way, I'd pass you right now all
by myself. But I'm not allowed to do that. We'll look forward
to getting you confirmed as rapidly as possible, both of you.
And, Terry, we really appreciate your service and being
willing to come onboard.
Thank you very much, both of you.
We stand adjourned.
Mr. Bryson. Thank you.
[Whereupon, at 4:35 p.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. John D. Rockefeller IV
to John Bryson
Question 1. Mr. Bryson, some have drawn a distinction between your
record with Edison International and your environmental roots. Can you
be clear about your position on coal as an American energy source?
Answer. Coal is an abundant and domestically produced fuel that has
been and remains an important energy source for the American people. It
is also one that I invested in heavily as the CEO of Edison
International; in fact, 40 percent of our energy came from domestic
coal.
Question 2. Mr. Bryson, small and rural businesses are the backbone
of this country's economy and provide jobs for millions of Americans.
Too often, however, they are overlooked by the agencies set up to
support them. I believe that the Department of Commerce should focus on
the businesses that have served Americans well and should help these
businesses grow into the future. To this end, I am holding a Commerce
Committee field hearing in West Virginia next week at which the
Department will testify. What will you do to reach firms that may be
reluctant to partner with the government or to take the initiative to
start selling to overseas markets?
Answer. Ninety-five percent of the world's potential customers are
abroad, so selling overseas is imperative for many companies' growth.
The Commerce Department must be clearer about the benefits of overseas
markets to our small and rural businesses, and follow up with services
to help them get there. This is about outreach and, if confirmed, I
plan to impress upon Commerce's Export Assistance Centers nationwide
the importance of touching all businesses with export potential,
including the two centers in West Virginia that I understand do good
work with local businesses there.
Question 3. I have been impressed with Secretary Locke's
CommerceConnect initiative to create ``One-Stop'' shops for businesses.
I believe that this initiative could greatly assist manufacturers, many
of which don't have the time to navigate a complicated bureaucracy. The
initiative is just getting off the ground and needs continued support
to succeed. Do you intend to continue this effort?
Answer. Yes. I believe the CommerceConnect initiative can play an
important role in this regard by helping cut through the red tape that
is an obstacle to too many American businesses. Because they are
physically in communities as well as available from anywhere in the
U.S. via the website and hotline, CommerceConnect can be a good gateway
to building relationships with businesses initially wary of working
with government and in providing exporting services for rural
businesses.
If confirmed, I would hope to continue this valuable initiative
begun under Secretary Locke, which I understand has helped hundreds of
American companies already. I believe CommerceConnect has the potential
to greatly assist small and medium-sized businesses to navigate the
Federal bureaucracy and access the business solutions they need, as
well as to connect with other state, local, and non-profit resources.
We need to continue to assist American businesses, regardless of their
size or geographic location, to cut through red tape and access
services and programs that will help enable their businesses to grow.
Question 4. When the Department of Commerce issued its privacy
green paper last year, I was concerned that it did not go far enough.
Most of online consumer data collection falls outside existing privacy
laws. Consumers have been forced to rely upon promises made by
companies and terms of service that are often difficult to understand.
I believe that there should be baseline privacy laws to protect
consumers. How should the government address the problem of privacy
invasions online?
Answer. I fully agree with you that there needs to be basic privacy
protections in the commercial context for all American consumers.
Privacy is a key ingredient for sustaining consumer trust, which in
turn is critical to realize the full potential for innovation and the
growth of the Internet. If confirmed, I look forward to working with
Congress on legislation to protect consumers' interests and provide
businesses clear and consistent rules of the road. I would also work
with the FTC and FCC to ensure there are authorities granted to enforce
the privacy obligations established by legislation.
Question 5. I have introduced S. 913, the Do-Not-Track Online Act.
It's a bill that allows consumers, with a simple click of the button,
to tell online companies that they don't want their information
collected; and obligates companies to honor that request. Do you agree
with the idea of Do-Not-Track for online consumer privacy?
Answer. I applaud your leadership to find a clear-cut solution to
unwanted invasions of consumer online privacy. I believe the Commerce
Department can play a pivotal role in implementing enforceable codes of
conduct through a multi-stakeholder process. If confirmed, I intend to
work with browser developers, Internet companies, standards
organizations, privacy advocates, and others to provide options for
greater control over personal information that may be used for online
tracking.
Question 6. Mr. Bryson, the Administration has been working on a
plan, announced during the President's 2011 State of the Union Address,
to make government not only more affordable, but also more competent
and efficient. I've heard that this proposal, expected to be announced
imminently, may involve overhauling the Department of Commerce and
relocating the National Oceanic and Atmospheric Administration (NOAA).
My priority as Chairman of the Commerce Committee is to make sure
that NOAA's day-to-day performance stays on track, and I'm deeply
concerned that a reorganization would divert attention from sustaining
the core services it provides that are both strained--from the hard
cuts it endured during the 2011 Fiscal Year budget debate- and
critically-needed--made evident most recently during the severe storms
and natural disasters of this spring. Do you think the White House has
made sustaining NOAA services, such weather prediction and forecasting
and the support of working waterfronts, a national priority? If
confirmed, what will you do to make sure the crucial services NOAA
provides aren't falling through the cracks?
Answer. I have not been involved in discussions regarding potential
government reorganization, and therefore can't speak to details of any
plans. However, I do agree with the President that we need to reform
our government to make it better organized and better equipped to
support American competitiveness. It is my understanding that the
Administration's first focus is looking at trade and exports to see how
we can better re-organize these functions to give American companies a
leg up in the global economy. Again, while I am not familiar with the
details of the discussions, I am confident that the White House has
NOAA's best interests in mind and will ensure that it continues to
deliver important services and programs to the public. If confirmed, I
look forward to working with NOAA to help them continue to provide
their excellent services to the American people.
______
Response to Written Questions Submitted by Hon. Daniel K. Inouye to
John Bryson
Question 1. You did not much discuss the National Oceanic and
Atmospheric Administration in your testimony but, as others have noted,
it makes up approximately 60 percent of the Department of Commerce's
budget and, given the breadth of its mandates, may occupy a significant
amount of your time. Among the most important of NOAA's missions is the
delivery of accurate weather and climate forecasts. This information
impacts every sector of our economy, our national defense, and all of
our daily lives. Underpinning this capability is a significant amount
of observing infrastructure, including a fleet of geostationary and
polar orbiting weather satellites. It is growth in the costs associated
with maintaining and developing this satellite infrastructure that has
largely driven the recent increases in NOAA's, and by extension the
Department's, budgets. Unfortunately, the current FY11 appropriation
does not include sufficient funding to support the timely development
of the next generation of polar satellites, the Joint Polar Satellite
System (JPSS), with the result that we are likely to face a significant
degradation of weather forecast capability in 2016 for a period of
eighteen months. Are you familiar with this issue? As Secretary, what
steps are you prepared to take to ensure that we do not incur a longer
gap in adequate satellite coverage than we already face?
Answer. I am aware of the importance of the Department's role in
the development and delivery of timely and accurate weather and climate
forecasts. I am also keenly aware of the importance that these
forecasts have on every sector of our economy and national defense.
While I am not familiar with the details of the issues related to the
NOAA satellite program, if confirmed, I intend to work with NOAA and
with the Congress to take all necessary steps to ensure that these
satellite acquisition programs are funded and effectively managed to
achieve mission success.
Question 2. Do you have thoughts on how the Department might
improve its long term major acquisition strategy to mitigate the
impacts of year to year variations in the political and economic
environment on important infrastructure such as JPSS?
Answer. With the role that the Department plays, from ensuring the
safety of lives and protection of property to monitoring the recovery
of the economy, an acquisition strategy should be in place to ensure
that the processes and procedures are providing the public with the
best service for its tax dollar. I understand Secretary Locke has
conducted a detailed and thorough review of the Department's existing
major acquisition strategy. I commit to continuing his work, if
confirmed, to find the best ways to mitigate any funding fluctuations
that could lead to instability in the Department's programs and result
in diminished service to the American people.
Question 3. I understand that the President intends to release his
initial proposal for a reorganization of government capabilities this
summer and that the makeup of the Department of Commerce may be
significantly altered. I believe that NOAA plays an important role in
the Department by serving as the Nation's premier operational science
agency, generating unique products critical to the day to day
functioning of our government and economy. Do you feel that the
National Oceanic and Atmospheric Administration should remain a part of
the Department of Commerce and, if not, do you have an opinion as to
where it should reside?
Answer. I believe that NOAA does vital work and look forward to
helping to continue that legacy, if confirmed. It is my understanding
that the Administration's first focus is looking at trade and exports
to see how we can better re-organize these functions to give American
companies a leg up in the global economy. While I am not familiar with
the details of the discussions, I am sure that the White House has
NOAA's best interests in mind and will ensure that it continues to
deliver important services and programs to the public. If confirmed, I
look forward to working with NOAA to help them continue to provide
their excellent services to the American people.
Response to Written Questions Submitted by Hon. John F. Kerry to
John Bryson
Question 1. In light of the constrained budget environment
affecting all agencies, it is important that decisions are made to
increase cost-effectiveness. Some of the most important decisions that
NOAA makes are with respect to the homeporting of its many research
vessels and ensuring that the most cost-effective homeport is chosen.
Given that temporary homeports can often lead to increased costs, do
you believe that, when available, permanent, cost-effective solutions
are the best option?
Answer. I think that all key decisions, whether in the government
or private sector, should take into account cost-effectiveness. I
remember your concern about NOAA vessel homeport issues from our
meeting; however, I am not yet familiar with the details of NOAA's
vessel issues. If we are confirmed, I look forward to working with the
Deputy Secretary nominee, Terry Garcia, to ensure all Department of
Commerce facilities and assets are managed with a priority put on cost
effectiveness in meeting NOAA's mission.
Question 2. As Commerce Secretary, would you support the use of
definable criteria in making decisions for the homeporting of vessels;
specifically: feasibility, appropriate use of existing Federal
facilities, and cost-effectiveness?
Answer. I am not yet familiar with the process by which homeports
for NOAA vessels are determined, but cost-effectiveness and the other
considerations you outline in this question seem to me at least highly
relevant to making home port decisions.
Question 3. The United States has made tremendous, unparalleled
progress in protecting endangered and threatened species. In the case
of the U.S. pelagic long line, however, our unilateral species
protection in an international fishery has contributed in part to the
inability of the U.S. to catch a significant portion of its
longstanding annual allocation of swordfish from ICCAT. This will
inevitably result in the reallocation of the U.S. swordfish quota to
other ICCAT countries whose species protection requirements fall far
short of those imposed by the U.S. A reallocation to nations with weak,
or nonexistent, protections for endangered and threatened species has
significant economic and environmental ramifications. If confirmed,
will commit to pursuing a more multilateral approach to protected
species management? Please describe some steps you will take to
minimize such reallocation at the ICCAT meeting this year.
Answer. If confirmed, I pledge to work both bilaterally and
multilaterally to help level the playing field so U.S. fishermen are
not disadvantaged in the global seafood market. I am not yet familiar
with the particular issues at hand in ICCAT, but, if confirmed, I look
forward to working with you, the industry and NOAA to quickly become
aware of the issues and ensure that NOAA's participation has our
fishermen's best interests in mind.
______
Response to Written Questions Submitted by Hon. Maria Cantwell to
John Bryson
Question 1. From the beginning, I have been an adamant opponent of
relocating the Marine Operations Center-Pacific (MOC-P) from the Puget
Sound to Newport, Oregon. For that reason alone, it has been extremely
difficult to get information from the Department on the project. As a
result, I demanded an Inspector General's report of NOAA's MOC-P
acquisition. Have you read the Inspector General's Report? If not, you
should carefully read and evaluate the Inspector General's report. It
will give you insight in to some of the management challenges you will
be facing at the Department and NOAA in particular. I am well aware of
internal discussions about the utility of keeping a MOC-P presence in
Seattle. I would be very supportive this effort. As secretary, will you
consider maintaining a MOC-P presence in Seattle? I urge you to reach
out to MOC-P personnel. As Secretary, I want you to hold a closed door
meeting with NOAA MOC-P employees, without senior management. I want
you to hear from NOAA employees themselves about the process of the
move, the necessity of maintaining fleet and collaborative science
presence in Seattle. Can you commit to meeting with NOAA employees in
Seattle to discuss this important issue?
Answer. If confirmed, I look forward to visiting NOAA employees and
facilities around the country. I am unaware of the specifics issues
that you raised regarding the Marine Operations Center Pacific;
however, if confirmed, I will certainly familiarize myself with MOC-P,
read and evaluate the Inspector General's report, and look into the
issue further.
Question 2. Vessel based research is an important component of
NOAA's mission. Stock assessment surveys, large scale ocean
acidification research, offshore critical habitat determination and
global climate change research can only be completed using vessel based
data collection. Fishing quotas in the North Pacific are based on stock
assessment survey data: the more robust the data, the more confidence
we have in the model. Without data, regional fishery management
councils are forced to catch limits due to stock uncertainty. Cutting
ship time will decrease stock data, which will decrease catch, net
profit, and as a result jobs for Washington State fishermen. As
Secretary of Commerce, how would you direct NOAA to restore ship time
and protect fishing jobs in my state?
Answer. If confirmed, I will work to support the requested
resources for ship time and ensure that future requests put NOAA in the
best position to support the fishing industry with current, high
quality data. I will also work to ensure NOAA continues to plan the
most efficient allocation of available resources to meet NOAA's highest
priority ship observation needs.
Question 3. Endangered southern resident orca research funding was
cut, eliminating offshore vessel based surveys and inhibiting NOAA
scientists from collecting data critical to the recovery of Orcas. As
secretary, how will you work to restore ship time funding for critical
programs such as orca research, stock assessment surveys and ocean
acidification research?
Answer. If confirmed, I will be a strong advocate for NOAA to have
the best science on which to base its decisions. As you note, ship time
to collect data and information about fisheries, orcas and ocean
acidification is vital to ensuring NOAA's decisions are scientifically
sound. If confirmed, I would work with Members of Congress, the
fisheries community, academia, and others to promote and to
continuously strengthen the excellence of NOAA's research and science
efforts.
Question 4. In addition to ship time funding, one of the roadblocks
to maintaining vessel based research that much of the NOAA fleet,
including the Miller Freeman. The Freeman conducts stock assessments in
the Gulf of Alaska and is in need of critical repair, with no funding
priority in sight. How will you work to restore the Freeman and
maintain the NOAA fleet overall?
Answer. Although I am not yet familiar with the budgetary issues
regarding this particular vessel at this time, I understand that
funding for ship time is necessary to facilitate NOAA's research and
mission, and is very important to you and your constituents. If
confirmed, I will work with the President and the Congress to support
funding for essential fleet priorities.
Question 5. Mr. Bryson, I have heard many scientists argue that we
are still grappling with the core scientific questions that lie at the
heart of the conflicts between Steller sea lions and fishermen in the
North Pacific. After many millions of dollars spent on research, we
still cannot definitively say to what extent fishing is impacting
Steller sea lion populations. Under the Endangered Species Act, NMFS is
required by law to arrive at an answer, but scientifically we still
lack a fundamental understanding of the answer to that question with
any certainty.
Please explain why a rigorous attempt at using a large scale
adaptive management approach has not been utilized in
implementation of the fishery no take zones in the Western
Aleutian Islands? NOAA has stated that an approach has been
attempted in the past, but scientists agree that the attempt
was poorly designed and poorly implemented.
As Secretary, can you commit to working with the North
Pacific Fishery Management Council and regional NMFS offices in
the Gulf of Alaska and Seattle to seriously consider
implementing an adaptive management approach, where the fishery
management regime is designed as a series of experimental
treatments with the explicit purpose of attempting to answer
some of the fundamental Steller sea lion questions?
Answer. While I am not yet very knowledgeable about the particulars
of this issue, I believe that NOAA's management of natural resources
should be as adaptive and based on real-time information as is
possible. If confirmed, I would encourage an approach whereby NOAA
would work with scientists, resource users, academia, and other
interested parties to explore the best and most practical mechanisms
for gathering real-time data so that managers can change course if
appropriate.
Question 6. Mr. Bryson, the most recent Steller sea lion biological
opinion is currently under a CIE independent review. While the
reviewers will evaluate the background, introduction, and scientific
study sections of the biological opinion, the CIE review panel is not
permitted to review the recommendations for management. To put it
simply, NMFS will not allow their conclusions to be reviewed.
What is the CIE panel? Where is it housed?
Who are the scientists sitting on this panel?
Who pays the salaries of those on the CIE panel?
Who pays the salaries panelists in their full time positions
(when panelists are not sitting on the panel)?
What is the involvement of the NOAA administration in this
panel? How much guidance is given to the panel? What specific
guidance has been given to the panel to date?
How are panelists selected for the CIE panel?
Do panel members represent the diverse science topics
covered in this report (movement ecology, life history, fishery
biologist, stock assessment specialists, habitat utilization
specialists, specifically GIS experts, orca biologists, baleen
whale biologists, predator collapse specialists, climate change
specialists)?
Please explain how this panel can represent a nonbiased
independent peer review of the complete biological opinion?
As Secretary, will you redirect the CIE panel to evaluate
the conclusions and management recommendations of this report?
Why or why not? If you will not allow the panel to review the
recommendations, please explain how you rationalize this
decision based on the Endangered Species Act and NOAA's
fundamental policies of scientific ethics.
As Secretary, can you commit to a fair, ethical,
independent, scientific peer review of the Steller sea lion
biological opinion?
Answer. Unfortunately, I am not yet familiar with this issue, but
if confirmed, I look forward to becoming versed in it as quickly as is
reasonably possible. I have generally supported sound peer review
processes and feel they can make important strides toward improving
quality and trust in scientific judgments. If confirmed, I will ensure
NOAA continues to work with you, other interested Members of Congress
and their staff, and others on this important issue.
______
Response to Written Questions Submitted by Hon. Frank R. Lautenberg to
John Bryson
Question 1. For decades, Federal agencies have only been permitted
to propose regulations whose benefits exceed their costs. Many of your
former colleagues in the power industry have touted the benefits of
regulations. In a December 2010 letter to the editor of the Wall Street
Journal, the CEOs of power companies, including PG&E, Calpine, PSEG,
Exelon, and Constellation wrote, ``Contrary to the claims that the
EPA's agenda will have negative economic consequences, our companies'
experience complying with air quality regulations demonstrates that
regulations can yield important economic benefits, including job
creation, while maintaining reliability.'' Do you agree that the vast
majority of government regulations yield great benefits for our economy
and society?
Answer. I believe that we can protect health and safety through
sensible regulations while promoting job growth and innovation. As a
former CEO, I know the challenges of complying with state and Federal
regulatory requirements. Regulations need to be seen in terms of their
cost, burden, and desired benefit. If confirmed, I look forward to
taking a close look at all regulations within the Commerce Department--
supporting those that are beneficial to our economy and society,
eliminating those that are neither, streamlining the regulation to the
extent possible, and in all cases seeking to find paths to timely
regulatory decisions for businesses operating under them.
Question 2. We know that changes in ocean chemistry, caused by
carbon dioxide, will affect our food supply and the health of our
oceans. Yet research on ocean acidification is still in its infancy. I
wrote a provision that became law in 2009 requiring NOAA to lead an
inter-agency effort to study the effects of ocean acidification. How
will you continue the Administration's commitment to better
understanding and addressing this growing problem?
Answer. If confirmed, I will support NOAA's continued instrumental
role in understanding the impacts of ocean acidification and changes in
ocean chemistry, and working to determine impacts on commercial fishery
species and coral species. It is also important to continue to work
closely with Federal agency, state government and academic partners to
ensure that coastal communities have the best data available to make
decisions.
Question 3. The Magnuson-Stevens fisheries law sought to ensure
healthy fish populations and keep the seafood industry sustainable and
profitable. But there have been complaints about the quality of the
data used to justify restrictions on fishing and the level of
involvement of the fishermen who know the local waters best. Will you
commit to using the highest-quality data to make fisheries management
decisions and to improving cooperation with local fishermen?
Answer. Yes. Using the best available science, including looking
consistently to updates in that science, is essential to NOAA carrying
out its responsibilities at the highest level. I understand that
cooperative research offers an important opportunity to involve
fishermen in NOAA's scientific efforts. If confirmed, I look forward to
learning more about these efforts and ways to support NOAA's
engagement.
Question 4. Over eighteen years as CEO of Edison International, you
helped that company become an energy efficiency innovation leader.
Based on your experience, how can innovations that help the environment
also help American businesses' bottom line?
Answer. Innovations that help the environment can also help
American businesses' bottom line and the economy. Investments in
technology, for example, can both reduce cost over their lifetimes and
help the environment. For example, Southern California Edison (SCE)
made significant investments in energy efficiency. Those investments
were made only if they resulted in lower costs over the lifetime of the
investments for the customers than the costs which would have been
incurred by other possible electric system investments to serve our
customers.
Question 5. The Patent and Trademark Office recently announced
plans to open a Detroit office, and I understand it is looking to
establish additional satellite offices to address the backlog of patent
applications. In determining the location for these new satellite
offices, what criteria do you believe the Patent and Trademark Office
should take into account?
Answer. I believe that the PTO should take into account the
availability of a talented work force, proximity to research
institutions and universities, and a significant level of patenting
activity. It is my understanding that these criteria are being
considered by the PTO in its deliberations on satellite offices.
______
Response to Written Questions Submitted by Hon. Mark Pryor to
John Bryson
Question 1. As Secretary of Commerce your top priority should be to
grow the economy and create jobs. What three job creation initiatives
are at the top of your agenda?
Answer. Job creation through economic growth will be my priority.
While there is not a single solution, I believe three areas of vital
importance are: (1) expanding goods and services exports through the
National Export Initiative and ensuring a level playing field for
American firms and workers, (2) fostering the American innovation that
is a hallmark of our economy, and (3) working to enhance our
manufacturing sector through initiatives like the Hollings
Manufacturing Extension Partnership. If confirmed, I also intend to
bring my own experience in business to reach out and ensure the views
of the private sector inform policy decisions of the Administration as
it focuses on its number one priority--job creation.
Question 2. Many entrepreneurs in rural America want to start their
own businesses and I am always looking for opportunities to support
these new business owners. Earlier this year, I introduced the Small
Business Savings Account bill (S. 364) to allow entrepreneurs to save
money, tax free, so they can start a business. I have also introduced
the American Opportunity Act (S. 256) to encourage angel investors and
venture capital funds to invest in fast growing small businesses.
Similar bills have been introduced in the House. Do you think tax
incentives such as the Small Business Savings Account and American
Opportunity Act can help small businesses succeed?
Answer. I support enhancing small businesses and taking steps to
help them grow and succeed. Small businesses need access to capital--be
it their own or provided by others. I am not familiar with the
specifics of your legislation to provide tax incentives, but, if
confirmed, I look forward to discussing it with you further.
Question 3. The National Broadband Plan concluded that, ``Broadband
can provide significant benefits to the next generation of American
entrepreneurs and small businesses-the engines of job creation and
economic growth for the country.'' Connect Arkansas, Arkansas's
statewide entity for broadband, has worked with small businesses in
community outreach and education programs. As Secretary of Commerce,
what will you do to expand broadband to rural America?
Answer. Expanding broadband access and adoption in the United
States will be a top priority for me, if confirmed, and the Department
of Commerce. Broader Broadband access provides major benefits for the
American economy and its communities, especially for small businesses
and entrepreneurs in rural America--including enhancing job creation,
education, health care, and public safety. The Department is already
hard at work advancing broadband in America, overseeing more than $4
billion in grants to expand broadband infrastructure, support public
computer centers, promote broadband adoption, and support statewide
broadband mapping and planning. I understand the Department has also
worked closely with the Department of Agriculture's Rural Utilities
Service, which likewise has been funding broadband projects in rural
parts of the country, and is also working with other Federal agencies
to identify 500 megahertz (MHz) of spectrum that can be repurposed for
wireless broadband, which is crucial to meeting the needs of rural
America. Indeed, this spectrum is likely essential to meeting the
President's goal of providing high-speed wireless broadband to at least
98 percent of all Americans within 5 years.
Question 4. A popular belief is that the United States no longer
needs to manufacture and can thrive exclusively as a center for design
and innovation. As Secretary of Commerce, what will you do to
strengthen American manufacturing? Is it realistic to advocate for new
government spending to assist manufacturers at time of fiscal
restraint?
Answer. The ``invent it here, manufacture it there'' economic model
is neither wise nor sustainable in my view. Maintaining a strong
manufacturing presence in the U.S. supports our ability to innovate
successfully for the future. And, our ability to innovate is tied to
our ability to keep good manufacturing jobs in the United States. The
manufacturing sector performs over two-thirds of private sector R&D and
accounts for approximately 90 percent of patents, and 70 percent of
engineering jobs. If confirmed, supporting the manufacturing sector of
our economy will be a priority at the Department of Commerce.
The President has proposed a framework for deficit reduction that
puts the Nation on a path to live within our means so we can invest in
our future--by cutting wasteful spending and making tough choices on
some things we cannot afford, while keeping the investments we need to
grow the economy and create jobs. Investing in technologies, such as
information technology, biotechnology, and nanotechnology, will support
new good jobs in the U.S. by helping manufacturers reduce cost, improve
quality, and accelerate time to market for U.S. made products.
Question 5. As part of the American COMPETES Reauthorization Act
(P.L. 111-358), I had an amendment requiring the National Science and
Technology Council to coordinate the advanced manufacturing research
and development programs and activities of the Federal agencies and
establish goals and priorities for advanced manufacturing research and
development that will strengthen United States manufacturing. What
should a national manufacturing strategy include and how should it be
implemented?
Answer. A strong domestic manufacturing base is vital to our
security and economic strength. If confirmed, I would:
Promote innovation by making investments in research and
development a priority;
Redouble our efforts to increase exports of manufactured
goods through the National Export Initiative which is the
Administration's goal of doubling U.S. exports by the end of
2014;
Implement pending trade agreements, which would benefit U.S.
manufacturers;
Enforce our trade laws to ensure American firms can compete
fairly in the global marketplace;
Support the President's efforts to reform our corporate tax
code to ensure the United States remains an attractive place to
do business; and
Support initiatives like the Hollings Manufacturing
Extension Partnership (MEP) which help manufacturers become
more efficient and gain access to new markets.
Question 6. Manufacturing jobs today require significantly more
training and education than in the past. Both labor leaders and
businesses recognize the need for a more educated and skilled workforce
through better science, technology, engineering, and math (STEM)
education. President Obama recently said colleges and universities need
to better align student skills with the workforce needs of business. As
Secretary of Commerce, what is your strategy for fixing the jobs
mismatch between what skills schools teach and what companies need?
Answer. As a member of the California Institute of Technology Board
of Trustees, I understand first-hand how crucial STEM education is to
America's future. Companies need these skills, and not enough students
in the United States are mastering them. I believe the Commerce
Department can play a role in this regard, particularly through bureaus
like NIST, to inspire students to work toward the goal of contributing
to scientific development in the public and private sectors. If
confirmed, I would like to work with Education Secretary Arne Duncan to
help relay this vital message, and be a voice for helping our students
get the education today that is essential to our country's economic
competitiveness in the future.
Question 7. How might the Federal Government encourage increased
funding for pre-competitive research by industry?
Answer. Given the current budget environment, I think the approach
taken by the President in the recently launched ``Advanced
Manufacturing Partnership'' (AMP) is the correct one. The AMP is a
national effort bringing together industry, universities, and the
Federal Government to invest in the emerging technologies that will
create high quality manufacturing jobs and enhance our global
competitiveness. The U.S. Government has had a long history of
partnership with companies and universities in developing and
commercializing the new technologies that have been the foundation of
our economic success-from the telephone, to the microwave, to the jet
engine, to the Internet. The Commerce Department can play an important
role in working with leading universities and companies to leverage
Federal resources to help spur innovation. As I understand it, one of
the initiatives highlighted in the President's announcement is a
Commerce Department initiative that is aimed directly at the pre-
competitive research you mention--the development of an advanced
manufacturing technology consortium to identify public/private
partnerships to tackle barriers to the development of new products.
Question 8. Many labor unions and businesses argue that certain
countries, particularly China, engage in unfair trade practices,
including currency manipulation. Critics assert that China artificially
keeps its currency valued low, which has the effect of decreasing the
price of goods produced in the country. If the United States believes
that a country is manipulating its currency, what should be our policy
with respect to getting that country to change its unfair trade
practices?
Answer. It is my understanding that the determination of whether a
country manipulates the rate of its currency exchange is one that would
be made by the Department of the Treasury. It also my understanding
that it is a high priority for the Treasury, working through the G-20,
the IMF and through direct bilateral discussions to encourage policies
that will produce greater exchange rate flexibility.
Commerce has the authority to administer the countervailing duty
laws through a legal process. U.S. statute and established case law
sets forth specific legal requirements that must be applied by Commerce
in order to initiate an investigation of a subsidy allegation. If
confirmed, I will work to ensure the integrity of our trade laws, and
will uphold U.S. industries' right to relief by following the
requirements of the U.S. law and our international obligations.
Answer 9. The National Research Council reported that research,
science and technology parks are a proven tool to encourage the
formation of innovative high-technology companies. The America COMPETES
Reauthorization Act authorized a new Regional Innovation Program to
provide grants for regional clusters and science park planning and loan
guarantees for science park construction. What is your view on the role
science parks and regional clusters play in helping make America more
competitive and increase domestic manufacturing?
Answer. Like you, I believe that driving innovation and research is
critical to driving economic growth in our country. I understand that
EDA's direct experience with science parks has been very successful,
especially in the area of small business development and growth. The
bureau advocates Regional Innovation Clusters, which are a proven way
to create jobs and grow the economy. They are geographic concentrations
of firms and industries that do business with each other and have
common needs for talent, technology, and infrastructure. Science parks
are frequently an integral part of a regional cluster generating the
research and innovation that supports the growth of entrepreneurs,
small business, and job growth.
______
Response to Written Questions Submitted by Hon. Claire McCaskill to
John Bryson
Question 1. As you know, enforcement of trade law by Federal
regulators has been sorely inadequate. According to a recent Government
Accountability Office (GAO) report, the Federal Government has not been
able to collect over $1 billion in antidumping and countervailing
duties in the last decade. In Missouri, there have been several cases
in which companies won their trade cases before the ITA and the ITC,
only to find that lax enforcement continues to allow foreign companies
to ship their goods into our country without paying required duties.
The Senate Committee on Finance, Subcommittee on International Trade,
Customs, and Global Competitiveness, under the leadership of Senator
Wyden, recently issued a report that illustrates how easy and common it
is for foreign suppliers to knowingly break the law and commit duty
evasion. This is disheartening and harms American industry and workers.
As Secretary, will you commit to making duty enforcement a top priority
of the department? What steps will you take to do so?
Answer. If confirmed, I will be committed to the strong enforcement
of our trade remedy laws. U.S. companies and workers need a level
playing field on which to compete. I understand that last August, in
support of the National Export Initiative, the Commerce Department
announced the Trade Law Enforcement Initiative to strengthen the
administration of the antidumping and countervailing duty laws.
Specifically, the initiative included 14 proposed measures to improve
the effectiveness of the Commerce Department's enforcement tools
through administrative and regulatory changes. I support this
initiative, and hope to see it through to its completion.
Question 2. Enforcement of trade law is the responsibility of
Commerce, ICE, CBP, and the Department of Justice. Will you commit to
aligning resources with these agencies to combat duty evasion and
customs fraud?
Answer. I would make enforcement of our trade laws a top priority,
and will work closely with my counterparts in the Department of
Homeland Security, including ICE and CBP, to optimize the use of our
collective resources in order to combat duty evasion and customs fraud
and hold those who violate our trade rules accountable.
I have been informed that officials from the Commerce Department
and Department of Homeland Security meet on a regular basis to discuss
enforcement matters, both at the staff and senior levels, and that this
on-going relationship has resulted in the sharing of information
relevant to a number of antidumping and countervailing duty evasion
issues. When a matter is referred to the Justice Department for
potential prosecution, I understand that the Commerce Department
provides technical information, when needed, to aid in the case.
Question 3. Commerce is integral in trade promotion activities. How
will you ensure that duty enforcement will be a part of Commerce's
trade promotion activities?
Answer. Efforts to enhance U.S. commercial competitiveness and
maximize the potential of U.S. exporters can be undermined by unfair
and illegal trade practices of governments and firms abroad.
Enforcement is a key piece of the President's National Export
Initiative, and I would make enforcement of the U.S. trade laws a
priority if confirmed as Secretary.
I understand that Commerce provides strong enforcement of the U.S.
antidumping and countervailing duty laws, which provide U.S. industries
and workers with a reliable mechanism to seek much needed relief from
unfair trade practices. I also understand that Commerce is undertaking
an effort to strengthen the administration of these laws with its Trade
Law Enforcement Initiative. Additionally, I am aware that Commerce
regularly advocates on behalf of U.S. companies whose exports become
subject to foreign trade remedy actions overseas. These enhanced
efforts to enforce U.S. unfair trade laws and the advocacy on behalf of
U.S. exporters subject to foreign unfair trade practices directly
address impediments to the competitiveness of U.S. producers, workers
and exporters domestically and abroad.
In short, if confirmed, I will work diligently to achieve that for
U.S. businesses, workers, farmers and ranchers a level playing field on
which to compete.
Question 4. The GAO reported that Commerce was working to speed up
the delivery of liquidation instructions to customs. Will you assure
that this issue gets resolved in a timely manner?
Answer. I am not yet well-versed in this matter, but if confirmed I
will work to see to it that issues raised by the GAO are addressed and
resolved in a timely manner, including enabling more accurate
implementation of Commerce's antidumping and countervailing duty
actions and quicker processing of liquidation instructions by Customs
and Border Protection.
Question 5. The U.S. Commercial Service has officers located in
American embassies and consulates across the world. Will you commit to
making Commercial Service resources available to other Federal
agencies, such as ICE and CBP, to better coordinate enforcement of
trade laws?
Answer. The Commerce Department's International Trade
Administration has an overseas network in U.S. Embassies and Consulates
in over 75 countries. If confirmed, I will look into how we can best
ensure that Commerce's overseas presence remains a vital component of
the inter-agency effort to enforce our trade laws.
Question 6. I am cosponsor of S. 1133, the Enforcing Orders and
Reducing Customs Evasion Act, which authorizes information sharing
among government agencies and speeds up the timeline to process
allegations of duty evasion. Do you support this legislation? Why or
why not?
Answer. I am not yet familiar with this legislation. If confirmed,
I will review it to better understand the details.
Question 7. In the 111th Congress, I co-sponsored S. 1606, which
required that foreign companies to establish a registered agent in the
U.S. as a requirement to importing to U.S. markets. The registered
agent would be held accountable under U.S. law. Do you support this
approach? Why or why not?
Answer. I am not familiar with this legislation. However, strong
enforcement of the trade laws is a priority for me. If confirmed, I
would consider recommendations from Congress and other interested
stakeholders on additional steps we can take to improve enforcement of
our trade laws.
______
Response to Written Questions Submitted by Hon. Tom Udall to
John Bryson
Question 1. The Department of Commerce includes a diverse
collection of agencies that work on everything from predicting the
weather to issuing patents. The Department's over-arching mission,
however, is to promote job creation and economic growth. That mission
is more important than ever. As Secretary, how will you provide
leadership to ensure that the Department of Commerce's diverse
collection of agencies are all working to meet the needs of the people
they serve?
Answer. As you note, while the Department of Commerce contains many
diverse agencies, the central mission of the Department is to support
American business by promoting innovation, providing information,
supporting economic development, and maintaining key infrastructure.
All of these efforts are in support of economic growth and job
creation. While each bureau in Commerce has its own unique mission, it
is important that the Department find ways to create efficiencies
across their operations. In my time at Edison International, I worked
to break down silos and ensure that the different departments under my
management worked together seamlessly. If confirmed, I will bring this
experience to the Department of Commerce and work to make sure that all
bureaus work together to support American business, particularly in
areas where their missions overlap. I plan to meet regularly with
Commerce bureau heads and promote effective working relationships
across the Department. Our work must be directed toward providing
services that help businesses grow, providing jobs and economic
prosperity for all Americans.
Question 2. Mr. Bryson, what have been the Department's most
successful recent efforts to help job creation and economic growth?
What are some of your thoughts for building on and improving on these
efforts?
Answer. I am reviewing the Department's current efforts. If
confirmed, I pledge to build on the work begun by Secretary Locke to
help more U.S. businesses, small, medium and large, break into new
markets, as well as hold our trading partners accountable so they are
giving American companies' products the same access in their markets as
we give theirs. Our success will mean more jobs and more business
investment.
If America is to take advantage of the extraordinary talent of its
people, we have to empower our entrepreneurs and innovators. Our
innovative capacity is embodied in our people, whether working in
Federal or university labs, companies, creative communities, or
neighborhood garages. The better able we are to speed ideas from the
drawing board to the market the more likely it is that America will be
home to the well-paying jobs of the future.
I want to build upon the efforts of the Commerce Department and
this Administration as a whole to meet the needs of American
businesses. Small- and medium-sized businesses account for the majority
of American jobs. We need to make our services more accessible and
easier to understand and use, and approach problem solving from a
client's perspective. We must simplify and prioritize at a time of
scarce resources. Promoting exports and capital formation, as well as
being a voice for American businesses on the Administration's ongoing
efforts to on regulatory and tax reform will be key areas on which I
will focus if confirmed.
There is important work the Commerce Department is doing to lay the
foundation for job creating growth in areas vital to the U.S. economy,
from fostering regional innovation clusters to extending high speed
Internet to underserved areas, to working with industry to develop
standards that will accelerate smart grid deployment, to developing and
promoting trust, privacy and security practices necessary for current
and future Internet-based business to thrive.
Finally, improving the employment picture will also mean focusing
on the vital work NOAA does in America's coastal communities.
Question 3. Mr. Bryson, some Members of Congress believe you hold
views related to global warming that make you unqualified to lead a
Department with the primary mission of promoting job creation and
economic growth. Do you believe that the need to address challenges
such as global warming and energy independence can create opportunities
for job creation and economic growth?
Answer. I do. Edison International supplied energy to foster job
creation and economic growth. At the same time, the company was working
to reduce climate change risks and to enhance energy independence.
Question 4. With your background in the energy sector and
experience as CEO of the one of the Nation's largest utility companies,
do you have experience creating clean energy jobs that are good for
both our economy and our environment?
Answer. If confirmed as Commerce Secretary, my top priority will be
creating jobs by working with businesses to spur economic growth. That
would include those businesses which are investing and innovating in
ways that will both enhance the environment and provide clean energy
jobs.
As CEO of Edison International, in our California utility
business--pursuant to mandates from the State--we became a national
leader in purchasing power in competitive auctions from renewable
energy companies. As a result of those auctions, the costs of those
forms of energy--wind, solar, geothermal, biomass--came down and jobs
were created. Further, in our Edison International competitive power
generation business, we built in other locations around the U.S. wind
power plants providing both jobs and diversifying our energy mix as a
company. These clean energy developments and purchases were part of a
highly diverse mix of power generation within the company.
Question 5. When we talk about national unemployment levels
hovering around 10 percent, we speak in terms of a jobs crisis.
Unfortunately, there are parts of the United States where unemployment
is much higher. Ten percent unemployment would actually be a good
statistic compared to the levels of joblessness on many Indian
reservations, where unemployment can rise to 50 percent. I am deeply
concerned about the lack of economic opportunity for many Native
Americans. Last year, the Department of Commerce did award several
Recovery Act broadband grants to provide telecommunications
infrastructure on Tribal lands that can serve as a platform for
economic growth. Could you share some of your thoughts on the
importance of addressing the unemployment crisis affecting many living
on Tribal lands? How can the Department of Commerce better help promote
job growth in economically distressed communities?
Answer. We must pay as much attention to unemployment in Tribal
lands as we do in other distressed communities. I am aware that
Commerce's Economic Development Administration in particular focuses on
promoting growth in economically distressed communities, and if
confirmed I expect to be an ear for and advocate of businesses in every
part of our country. If confirmed, I will ensure the EDA continues that
focus--particularly with its work establishing Regional Innovation
Clusters, through which geographic concentrations of firms and
industries are bringing a new framework to economic development.
Question 6. The work of Department of Commerce initiatives led by
EDA, MEP and TAA for Firms is especially important to small businesses
across the country. I would like to ask about how these efforts within
the Department of Commerce can continue to serve the needs of
entrepreneurs and small business owners. The Manufacturing Extension
Partnership (MEP) program has local MEP centers in every state to help
small manufacturers. This Committee passed American COMPETES
legislation last year to reauthorize the MEP program. This year, we
have also had hearings on the need to ensure a vibrant American
manufacturing sector. MEP Centers, such as the one in my state, face
challenges with cost share requirements that limit their ability to
help some of the small firms that most need assistance. The MEP system
has requested their cost share requirement be reduced to a 50/50 ratio
consistent with all other Department of Commerce financial assistance
programs. If confirmed, could you look into the issue of the MEP
program's cost share requirements?
Answer. If confirmed, I will look into the issue of the MEP
program's cost share requirements and I look forward to discussing this
issue with you further. I understand that the MEP program has been very
successful, and I am committed to exploring ways to make it even more
effective.
Question 7. As you know, job creation is a top priority. The Senate
is currently considering reauthorization of the Economic Development
Administration (EDA). The EDA is an important agency to our immediate
economic recovery and has always helped local governments plan for
smart regional growth. In New Mexico, EDA projects have created
approximately 4,200 jobs in the last 4 years. In the past 6 years, the
EDA has funded 75 projects totaling over $37 million.
And yet, as successful as the EDA has been, it has to evolve.
That's why I was pleased to see the growth of programs like the i6
Green Challenge that promote innovative ideas to drive technology
commercialization and entrepreneurship in support of a green innovation
economy. What outcomes for the i6 Green Challenge would you consider a
success? Are there other green technology initiatives that you are
developing?
Answer. I am not prepared at this time to provide fully formulated
views on the i6 Challenge, but I believe grant programs like the i6
Challenge are important to help promote innovative ideas, economic
growth and a green economy. Additionally, EDA administers the Global
Climate Change Mitigation Incentive Fund, which promotes the concept
that green versions of its traditional investments help advance the
national green economy, which in turn contributes, to economic growth.
If confirmed, I look forward to working with you and the Congress on
these important issues.
Question 8. The Department of Commerce administers the Trade
Adjustment Assistance for Firms program, which helps American
manufacturers that are directly impacted by imports and foreign
competition. As Congress considers passage of new free trade
agreements, I want to be sure that TAA for Workers and TAA for Firms
are also reauthorized. Some of the type of assistance includes help
implementing lean manufacturing, better marketing, and quality
assurance. TAA for Firms has helped New Mexico manufacturers and a food
company that specializes in products such as green chile. This type of
assistance can help some of small manufactures not only adjust to
competition but also take advantage of new business opportunities. As
Secretary of Commerce, will you support TAA for Firms and other efforts
to aid American small businesses?
Answer. I believe we must provide for open markets abroad through
Free Trade Agreements, while we maintain an open market in the United
States. However, I do recognize that while trade creates jobs and
economic growth, it may also result in dislocation. I think our goal
should be providing help in the most flexible way possible to allow
individuals, firms, and communities to transition to a better future.
The Economic Development Administration also administers a grant
program which is similar to the TAA program called the Economic
Adjustment Assistance (EAA) program. EAA is flexible and provides a
wide range of technical, planning, and public works and infrastructure
assistance in regions that experience adverse economic changes that may
occur suddenly or over time. The EAA program in particular, is
authorized to provide assistance to communities injured by
international trade and loss of manufacturing jobs. If confirmed, I
look forward to working with you on this important issue.
______
Response to Written Questions Submitted by Hon. Mark Warner to
John Bryson
Question 1. Mr. Bryson, since Federal spectrum use is managed by
the Department of Commerce through the National Telecommunications and
Information Administration, you have an important role to play in
meeting these goals. As you may know, the Commercial Spectrum
Enhancement Act of 2004 established a process for relocating Federal
agencies from spectrum and it provided for reimbursement for relocation
costs. Last summer, Senator Wicker and I introduced bipartisan
legislation to reform this process. Our bill makes the relocation
process more predictable and transparent for both Federal agencies and
potential bidders. The bill passed the Commerce Committee without
objection last year. However, the Administration has raised concerns
about the legislation, but has not provided alternative proposals or
information regarding several outstanding issues.
Will you commit to working through these concerns in a timely
fashion so that this legislation can be considered as part of any
spectrum package that provides additional funding to Federal agencies?
I am concerned that without some level of process improvements,
allowing Federal agencies to access planning funds in advance of a
transition is not sufficient to ensure a workable process between the
private sector and the government.
Answer. I understand that we must optimize the efficient use of
spectrum, including freeing up portions of the radio spectrum band that
are currently used by Federal agencies, without jeopardizing the
ability of Federal agencies to develop plans for and execute
effectively their mission. If confirmed, one of my priorities will be
to work to ensure that the National Telecommunications and Information
Administration (NTIA), in conjunction with the Federal Communications
Commission, meets the President's goal of identifying 500 MHz of
commercial and Federal spectrum that can be reallocated for wireless
broadband use over the next 10 years. I also believe that Federal
agencies need the tools to rapidly relocate in the most responsible
manner possible, including funding for upfront planning costs. I regret
that I am not yet fully familiar with the specifics of your proposed
legislation. If confirmed, I look forward to working with Congress and
the Administration to implement process improvements which would ensure
that Federal users can rapidly and responsibly relocate in order to
achieve the President's goal of freeing spectrum for wireless broadband
use.
Question 2. Below are the specific concerns we have heard about:
Question 2a. The bill would require Federal users to complete their
relocation within 1 year after they start receiving their relocation
funds. The Office of Management and Budget (OMB) is also provided with
the authority to waive the deadline, if justified, on an annual basis
without limitation. We are told the Administration believes that this
deadline sets unreasonable expectations. However, I think we need to
set some expectations--both for incoming commercial users and for the
Federal users who must vacate the spectrum in a reasonable amount of
time. Certainty regarding relocation timelines is important because it
encourages commercial entities to bid on the spectrum in the first
place and it holds Federal agencies accountable for the planning
decisions they make relative to a scarce resource. I also note that
since the Senate Commerce Committee recently approved legislation which
provides Federal agencies access to the Spectrum Relocation Fund in the
U.S. Treasury, to assist in making transition and spectrum sharing
planning decisions, it is difficult to understand why taxpayers should
not expect agencies to adhere to reasonable planning timelines. Do you
believe Federal agencies should have to meet reasonable timelines for
relocation? If not, why not?
Answer. I believe that we must do everything we can to facilitate
the rapid and responsible relocation of Federal users, including
instituting reasonable timelines that properly account for the specific
agency operations and missions upon which taxpayers rely. If confirmed,
I am committed to working with NTIA and other Federal agencies to
ensure that we move as aggressively as possible to achieve the
President's goal of freeing up spectrum for wireless broadband use.
Question 2b. The process in S. 522 provides for OMB to issue
waivers, if justified, on an annual basis. Why does the Administration
believe this process does not provide adequate flexibility for Federal
agencies? Please be specific about agency or system concerns which have
been raised with the National Telecommunications and Information
Administration (NTIA), which is supposed to be managing all Federal
spectrum users. If you believe an annual review process is too
difficult for Federal agencies and for NTIA, please provide an
alternative proposal for ensuring agencies will adhere to reasonable
timelines in their relocation plans.
Answer. This is certainly an important matter concerning Federal
spectrum management. However, I am not yet sufficiently informed to
provide a full answer to this question. As described above, I am
committed to rapidly and responsibly relocating Federal users to free
up additional spectrum for wireless broadband use.
Question 2c. Another critical element of S. 522 is to encourage
greater transparency in the relocation plans of Federal users who are
vacating spectrum. The Warner-Wicker bill directs NTIA, in consultation
with OMB and the Department of Defense, to adopt regulations within 180
days of the bill's enactment to ensure publicly released information
contains no sensitive or classified information. Both Senator Wicker
and I are sensitive to concerns about appropriate protection of
classified information, but we also believe the public should have
reasonable knowledge of spectrum transition plans. What is the
Administration's concern with this approach? Please be specific about
any other recommendations for an alternative proposal regarding the
scope of information the public can expect to receive.
Answer. I believe that the public should have reasonable
information regarding the agencies' intended transition plans while
protecting information that is classified or otherwise legally excluded
from public release. If confirmed, I will work closely with the NTIA
and the Congress to ensure that we maximize the amount of information
to the public while providing every appropriate protection for
sensitive or classified information.
Question 2d. The Administration has raised concerns about the
bill's dispute resolution process, which would rely on a three-member
dispute resolution board comprised of OMB (the chair), NTIA, and the
FCC. I believe that establishing such a process is necessary to avoid
the kind of years-long delay that in some instances accompanied prior
reallocations. In the absence of such an entity, disputes are subject
to often protracted negotiations with the affected agency rather than
the review of impartial government experts. I am told the
Administration does not believe the FCC should be part of the review
process. As the entity responsible for oversight of commercial
licensees, do you believe the FCC should be included in the dispute
resolution process in order to avoid protracted disputes between
licensees and current users? If not, why not?
Answer. Again, I am not yet sufficiently well-informed to provide a
direct answer to this question. If confirmed, I commit to developing
that deeper understanding and I will work with Congress, the NTIA and
the appropriate Federal agencies on the issue of dispute resolution to
ensure that we can maintain and build on the strengths of the existing
system while at the same time being open to adopting improvements.
Question 2e. The bill also requires that a Federal entity's
relocation plan must provide for sharing and coordination of eligible
frequencies with commercial licensees during the transition period.
Each plan must include a presumption that commercial licensees shall be
able to use eligible frequencies during the transition period in
geographic areas where the Federal entity does not utilize those
frequencies. Many Federal users utilize spectrum only in discrete
geographic areas of the country. I am concerned that leaving sharing
wholly to the discretion of the Federal user is apt to result in no
sharing during the process. Does the Administration oppose spectrum
sharing during the relocation transition process in areas where it is
possible to share spectrum without creating interference to the Federal
user during this transition?
Answer. If confirmed, the Department of Commerce under my
leadership will continue to support efforts by commercial providers to
use spectrum as soon as possible. I am committed to taking all
appropriate steps to expedite the efficient and responsible relocation
of Federal users to fulfill President Obama's goal of freeing 500 MHz
of spectrum for wireless broadband use.
Question 2f. The Administration has expressed concern that the
Warner-Wicker bill does not permit Federal users to use money from the
Spectrum Relocation Fund for upfront (pre-auction) planning and R&D. I
would note that S. 911 which was recently favorably considered by the
Committee expands the definition of costs eligible for reimbursement to
include planning for potential or planned auction; and the costs of
acquiring ``state-of-the-art'' replacement systems that may include
``incidental increases in functionality,'' including those necessary to
achieve security, reliability and resiliency. Do these provisions
address this concern?
Answer. I am not privy yet to the views of the Administration on
this legislation. However, if confirmed, I will look into this matter
and work with NTIA on matters which affect Federal users of spectrum.
Question 2g. Does the Administration have any reason to believe the
combination of access to forward-planning funding and process
improvements for spectrum relocation will harm taxpayers or Federal
agencies?
Answer. I am not yet privy to the views or deliberations of the
Administration or of the Department of Commerce on the specific
spectrum relocation and am not yet sufficiently knowledgeable to
provide a firm answer to this question. If confirmed, I pledge to work
with the Congress to ensure that updates to spectrum laws and policy
include consideration of funding for upfront planning costs and process
improvement.
Question 3. Nearly one year ago today, President Obama signed a
Presidential memorandum that committed the Federal Government to a
sustained effort aimed at making available 500 MHz of Federal and
commercial spectrum over the next 10 years. It is clear that any
realistic strategy targeted at meeting the broadband deployment
objectives outlined by the Administration, Congress and the FCC must
include additional licensed spectrum allocations below 3 GHz for
commercial use. Unfortunately, to date NTIA has recommended that only
15 MHz of spectrum below 3 GHz be reallocated for commercial use. This
is clearly not enough to get the job done. If the Administration truly
is serious about promoting commercial broadband deployment and
stimulating the economy, then the FCC and NTIA have to focus on
internationally-harmonized spectrum allocations of sufficient size for
mobile broadband use.
Among the government bands most often identified as ideal for
reallocation is 1755-1850 MHz, particularly the portion of the band
between 1755-1780 MHz. This spectrum is immediately adjacent to
spectrum already used for commercial advanced wireless services and is
allocated globally for this purpose. In the 2010 National Broadband
Plan, the FCC called on NTIA to complete its evaluation of the
prospects for reallocating this spectrum by October 2010, but NTIA is
still conducting its evaluation. When can we expect that evaluation to
be complete? What are the prospects for reallocating this spectrum by
January 2014? If not, why not?
Answer. It is my understanding that the Department, particularly
the NTIA, has been hard at work implementing the President's goal of
freeing up 500 MHz of spectrum for wireless broadband use. If
confirmed, I will be committed to fulfilling the President's spectrum
relocation goals as quickly and responsibly as possible.
______
Response to Written Questions Submitted by Hon. Mark Begich to
John Bryson
Question 1. Some lawmakers and the fishing industry in general have
raised concerns with the nominee's past work with the Natural Resources
Defense Council and actions taken by the Council since then. How does
Mr. Bryson respond to these concerns?
Answer. In my last year of law school, 1968-69, a small group of my
classmates and I were drawn to try to use our developing skills to
contribute to making our country cleaner and healthier, founding the
Natural Resources Defense Council (NRDC). I have not been involved with
the Natural Resources Defense Council's policymaking or decisions for
37 years. A lot has happened in the decades since I helped found this
organization. I practiced law and headed two independent state
agencies: California's Water Resources Control Board and its utilities
commission. In 1984, I joined Southern California Edison (SCE). Six
years later, I was made SCE's and its parent company's, Edison
International, Chairman and CEO. In nearly two decades as CEO, I did
what was right for our customers and shareholders, not the NRDC. If
confirmed as Commerce Secretary, I'll do what's right for a new set of
shareholders--the American people.
Question 2. In Alaska, our fishing fleets understand that to remain
a viable industry in the long-term, we have to manage the resource with
an eye to the future. While catching more fish today can bring short-
term jobs and profits, there can also be a long-term economic cost. How
do you plan to balance the need for jobs today with the desire for our
fishing industries to be a viable, sustainable provider of jobs over
the long-haul?
Answer. NOAA and the fishing industry share a goal of ensuring
there is a healthy and sustainable fishing industry in the future. To
ensure such an industry exists, we must work together to ensure that
the resources on which the fishing industry depends are healthy and
used sustainably. Constant improvements to fisheries science are needed
to ensure that fishing communities get the greatest fishing opportunity
possible within sustainable levels. If confirmed, I will work
diligently with NOAA to ensure that NMFS' actions are based on the best
available science so that we keep and create as many jobs as possible
in the industry.
Question 3. When fishermen ask to consider the ``economic impacts''
of NOAA's regulatory actions and fishing restrictions, what economic
time-frame do you think is most important? The short-term or the long-
term?
Answer. Fishermen need to be able to fish now to sustain the needs
of their families and they need to know that they can invest in and
rely upon a secure fishing future as well, so both time frames must be
taken carefully into account in making NOAA's important judgments.
Question 4. The Magnuson-Stevens Act reauthorization in 2006
included several important provisions which were intended to eliminate
overfishing and improve overall fisheries management. While much
progress has been made, NOAA has struggled to meet these requirements
in some areas. Recreational interests complain this has resulted in
considerable hardship for their businesses. What can be done to address
these issues to allow the agency to fulfill its obligations as
envisioned by Congress without unnecessarily taking the public off the
water?
Answer. It is important that NOAA carry out its Magnuson-Stevens
Act responsibilities based on sound science and sound exercise of
judgment to sustain healthy fish stocks and a healthy and profitable
fishing industry. If confirmed, I will ensure NOAA invests its
resources in a manner that fulfills its obligations and sustains our
Nation's commercial and recreational fishing businesses.
Question 5. How will the Commerce Department improve relationships
in rural areas when some may feel overlooked in these constrained
budget times?
Answer. A healthy American economy depends on a prosperous rural
America. Rural America is the main source of our food and water, and
plays an increasingly important role in moving toward greater energy
independence for our country by supporting a growing clean energy
industry. But today, too many rural areas suffer from lower incomes and
higher poverty rates than the rest of the country. To win the future
for our nation, we need to help strengthen economies in rural America.
If confirmed, I will participate in the President's efforts to
address rural challenges. I understand that the President recently
issued an Executive Order creating a White House Rural Council. If
confirmed, I will participate with an eye toward job creation and
ensuring Federal investments in rural communities create maximum
benefit for Americans in rural communities.
Question 6. How will the Commerce Department work with Tribal
Nations to improve economic stability and trade with foreign nations?
Answer. Sovereign Indian nations have an important ability to
attract and facilitate trade and tourism with foreign nations. If
confirmed, I will work to ensure the Department of Commerce continues
to utilize the regional resources of the International Trade
Administration to expose Native producers to foreign markets, leverage
foreign trade zones, and create introductions between foreign trade
opportunities and Native businesses with events both here in the U.S.
and in foreign countries. The Minority Business Development Agency
Minority Enterprise Centers and Native American Business Enterprise
Center offices help these Native businesses scale to capacities and
access to capital. The export of Native American cultural arts and
crafts can be directly correlated to tourism, in turn drawing
international tourists to Native American Indian Reservations for
cultural, entertainment and hospitality, and experiencing all that
these reservations have to offer. Bringing these ``outside'' dollars
into Indian Country is key to growing and stabilizing their local
economies.
______
Response to Written Questions Submitted by Hon. Olympia J. Snowe to
John Bryson
Question 1. The American manufacturing sector, like the rest of the
American economy, was hit hard by the latest recession. But as a result
of a confluence of events, U.S. manufacturers have been on an uneven
playing field when it comes to competing with the rest of the world
since before the recent economic downturn. Specifically, rising health
care and energy costs, compliance with myriad regulations, and high
tort litigation costs are placing American manufacturers at a strong
disadvantage. As an anecdote, the U.S. corporate tax rate remains by
and large unchanged over the past two decades, while major competitors
have lowered theirs. These so called external costs, according to the
National Association of Manufacturers (NAM), have resulted in a nearly
18 percent disadvantage for U.S. manufacturing firms when compared with
similar costs for nine of America's major trading partners. It is no
wonder, then, that manufacturing in May grew at the slowest pace in 20
months, and it has lost over six million jobs--or roughly one-third of
its employment--over the past decade.
Despite these challenges, there can be no doubt that manufacturing
is essential to our Nation's future. In 2008, U.S. manufacturing
generated $1.64 trillion worth of goods, meaning that if it were a
country, it would be the eighth largest economy in the world.
Furthermore, the United States is the world's largest manufacturing
economy, as it produces 21 percent of all global manufactured products.
American manufacturing is responsible for 12 million American jobs
directly, and another 6.6 million indirectly, for a total of one in six
private sector jobs. And U.S. manufacturing employees have notably
higher annual earnings and are recognized as the most productive
workers in the world. According to the Manufacturers Association of
Maine, workers in my home state's manufacturing sector earn almost
$1,000 per month more than their counterparts in other sectors, and
they have increased output per employee by 66 percent over the past 8
years--from $60,000 in 2001 to $89,000 in 2009.
If confirmed, what specific steps will you take as Secretary of
Commerce to strengthen the position of American manufacturers in the
global economy, so that they can create jobs and opportunity here at
home?
Answer. Without a doubt, domestic manufacturing production is
vitally important to the United States and our economy. The
manufacturing sector continues to be a key driver of economic
productivity--generating 11 percent of total U.S. GDP, contributing 86
percent of all U.S. merchandise exports, and employing over 11 million
American workers at wages that are 22 percent higher than average
compensation. If confirmed, I will pursue several initiatives as
Secretary to enable domestic manufacturers to grow and be more
competitive.
First, I will focus on expanding exports of U.S. goods and services
through the National Export Initiative with a goal of doubling our
exports by the end of 2014. To accomplish this goal, we must enforce
our trade laws to provide a fair and level playing field for U.S. firms
and workers, as well as maximize opportunities to expand market access
abroad for U.S. manufacturers through direct advocacy and removing
barriers to trade. Further, we must implement the pending trade
agreements with Panama, Colombia and South Korea, which will benefit
U.S. manufacturers and workers. Under the leadership of President Obama
and Secretary Locke, the Commerce Department has achieved progress on
these efforts and, if confirmed, I will continue to make exports a high
priority of the Department.
Second, I believe the Commerce Department must prioritize key
investments in programs that enable manufacturers to be more innovative
at home and competitive abroad. The President believes in making
investments that we need to grow the economy and create jobs, such as
investments in advanced technologies that will provide U.S.
manufacturers with the cutting edge tools they need to compete against
countries like China. These technologies can both revitalize existing
manufacturing industries and support the development of new products in
emerging industries. For example, I understand that the Department's
FY2012 budget proposes new investments for research and development at
NIST to help create industries and jobs of the future in areas such as
clean energy, advanced manufacturing and nanotechnology. Further, the
budget request calls for an increase in funding for the Hollings'
Manufacturing Extension Partnership which helps firms make their
manufacturing process more efficient and gain access in new markets. If
confirmed, I will place a priority on programs in the Commerce
Department that benefit American manufacturers and work with Congress
to approve needed funding.
Finally, if confirmed, I will advocate for President Obama's
initiatives to reform our corporate tax code and eliminate or modernize
outdated Federal regulations, both of which will benefit U.S.
manufacturers. I believe President Obama's call to achieve corporate
tax reform that lowers the corporate tax rate without increasing the
deficit by closing special interest loopholes and his proposal to
expand and make permanent the Research and Experimentation Tax Credit
will provide a boost to our economy. Further, I believe we should
review existing Federal regulations to eliminate unneeded and
unnecessary burdens on businesses which will enable U.S. firms to be
more competitive in the global marketplace.
I am optimistic about the future of manufacturing in the United
States. I believe the marketplace provides many opportunities for U.S.
manufacturing firms both today and in the future. The Commerce
Department is an important partner in helping domestic manufacturers
achieve success. If confirmed, I would look forward to working closely
with you and your colleagues in Congress to implement policies and
reforms that help U.S. manufacturers to compete and succeed.
Question 2. Additionally, the Manufacturing Extension Partnership
(MEP) is a successful public-private partnership housed at the
Department of Commerce that assists small- and medium-sized
manufacturers with technical assistance projects, training, and long-
term strategic support. However, because of the current cost-share
structure, MEP centers face a two-thirds match requirement after the
third year of operation. That means that for every dollar a state MEP
center receives, it must match that dollar with an additional two
dollars.
While it has always been a difficult burden in the past for MEP
centers to satisfy the high cost share requirements, it is even more
difficult now in this trying economy. This leaves MEP centers spending
an increasing amount of time fundraising and less time focused on
providing services to America's small manufacturers. That is why I
introduced legislation last Congress to reduce the requirement to 50
percent, a much-needed step that will provide relief to these centers
that have a significant impact in aiding thousands of small and medium
sized manufacturers nationwide. While this legislation did not pass,
the America COMPETES Reauthorization Act contains a provision I helped
craft requiring the Government Accountability Office (GAO) to report on
changes to the cost-share requirement within 90 days of the bill's
passage, given the timeliness of the issue.
In the MEP's July 2010 report titled ``Renewing the U.S. Commitment
to a Strong Manufacturing Base,'' one of the ways listed to ``leverage
and maximize the Federal investment'' in the program is reducing the
cost-share requirement. Additionally, the aforementioned GAO report
offered ``factors for consideration'' for the Secretary of Commerce to
employ when making this statutorily required change. Will you, if
confirmed as Secretary of Commerce, commit to working with me and my
colleagues to reduce the MEP's cost-share requirement?
Answer. If confirmed, I will put a priority on looking into the
issue of the Manufacturing Extension Partnership program's cost share
requirements. I do not know enough about this issue, at this time, to
commit now to reducing those cost-share requirements. However, if
confirmed, I do commit to getting back to you and others on the
Committee with what I find and believe to be practically possible with
respect to this issue.
Question 3. Manufacturers and workers in trade-sensitive
industries--such as paper production in Maine--feel that the Yuan is
significantly undervalued, making Chinese imports artificially cheaper
vis-a-vis competing U.S. goods. As a result, according to the
independent Economic Policy Institute, since China joined the WTO in
2001, 2.4 million jobs have been lost or displaced in the U.S.--
including nearly 10,000 in my home state, which has been absolutely
devastating. For years I have been concerned that the Treasury and
Commerce Departments have refused to investigate the undervaluation of
foreign currency.
In 2006 and again in 2007, Federal Reserve Chairman Ben Bernanke
took the position that China's currency manipulation provides ``an
effective subsidy for Chinese exporters.'' Do you generally agree with
this statement? Do you think it's worth having our government at least
look into this question and determine whether or not cases of currency
undervaluation violate WTO rules?
Answer. It is my understanding that the Department of the Treasury
considers on a semiannual basis whether a country should be deemed a
currency manipulator. It also my understanding that it is a high
priority for the Treasury, working through the G-20, the IMF and
through direct bilateral discussions to encourage policies that will
produce greater exchange rate flexibility.
The Commerce Department must evaluate all subsidy allegations
separately according to the evidence presented as part of its quasi-
judicial process. If confirmed, I will promote the strong enforcement
of our trade laws, including the U.S. antidumping and countervailing
duty laws.
Question 4. To date the Commerce Department--which regularly
investigates and imposes tariffs on imported products that benefit from
foreign government subsidies in violation of our trade rules--has
refused to even initiate an investigation into whether China's currency
practices constitute an illegal export subsidy. In February, I
introduced S. 328, the ``Currency Reform for Fair Trade Act'' to
require Commerce to at least initiate an investigation--on a case by
case basis--into whether currency undervaluation constitutes a
prohibited export subsidy. My bill mirrors legislation (H.R. 2378) that
passed the House last September by broad, bipartisan margins. Do you
support this approach?
Answer. I regret that I am not yet familiar with your legislation.
However, strong enforcement of the trade laws is a priority for me, and
if confirmed, I would look forward to the opportunity to discuss this
issue with you and learn more about it.
Question 5. The U.S. has run an advanced technology deficit every
month since June 2002, meaning we consistently import more advanced
technology than we export. For 2010, our advanced technology deficit
totaled an astounding $80.8 billion. And one of the most significant
technology gaps related to this deficit is with information and
communications technologies (ICT)--for the month of April 2011 alone,
we imported over $9 billion more in ICT products and services than we
exported.
This deficit weakens the Nation's 21st Century high-tech job
market, the long term health of our economy, and our ability to remain
competitive globally. For example, the Bureau of Labor Statistics
estimates that employment in Computer and Electronic Product sector is
expected to decline 19 percent over the 2008-2018 period.
Also, the National Science Board's 2010 Digest on Key Science and
Engineering Indicators noted that while the ``United States holds a
preeminent position in science and engineering . . . Many other nations
have increased their R&D and education spending. This trend will
challenge the world leadership role of the United States.'' As
evidence, while our country's investment in R&D has grown at an annual
rate of about 6 percent between 1996 and 2007, China's R&D investment
grew by over 20 percent annually during the same time. But most
critical is the fact that investment in basic research has notably
declined over the past decade--Federal Reserve Chairman Ben Bernanke
recently voiced his concern about the downward trend and its impact on
economic growth.
Given that part of the Commerce Department's mission is to foster
innovation and spur research and development (R&D) investment to create
jobs and enhance economic development, what specific efforts would you
implement as Commerce Secretary to reverse these trends? This is
critical, because addressing these deficits would mean, in the long-
term, more high-tech jobs and a more stable economy, which is vital to
maintaining our competitiveness in this global economy.
Answer. Given the current budget environment, I think the approach
taken by the President in the recently launched ``Advanced
Manufacturing Partnership'' (AMP) is the correct one. The AMP is a
national effort bringing together industry, universities, and the
Federal Government to invest in the emerging technologies that will
create high quality manufacturing jobs and enhance our global
competitiveness. The U.S. Government has had a long history of
partnership with companies and universities in developing and
commercializing the new technologies that have been the foundation of
our economic success--from the telephone, to the microwave, to the jet
engine, to the Internet. The Commerce Department can play an important
role in working with leading universities and companies to leverage
Federal resources to help spur innovation. As I understand it, one of
the initiatives highlighted in the President's announcement is a
Commerce Department initiative that is aimed directly at research and
development--the development of an advanced manufacturing technology
consortium to identify public/private partnerships to tackle barriers
to the development of new products.
Question 6. As you know, I am the Ranking Member of the
Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard.
Commercial fishing interests are committed participants in Maine's
marine resource management, and critical to my state's economic
success.
Leading fisheries scientists agree that U.S. fishermen, subject to
the Magnuson-Stevens Act, are among the most heavily regulated in the
world. As a result, depleted resources are rebuilding, but not without
economic costs in the interim. In Maine alone, 23 percent of the crew
positions in the groundfish fishery have been lost. NOAA reports that
revenues are up, but clearly our work is not yet complete.
Recently, NOAA issued an independent report reviewing the New
England Management Process, which concluded that ``many industry
members feel that NMFS no longer has any focus on economic growth of
the industry.'' The Department of Commerce's mission is to promote
economic growth, while a key mission of its largest agency, the
National Oceanic and Atmospheric Administration, is the conservation
and management of marine resources.
How would you address the concerns of the fishing industry, who
believe that the Department of Commerce has worked against them rather
than worked to support them? How do you propose to reconcile these
distinct and potentially conflicting missions in order to create jobs
in the seafood supply chain?
Answer. In the meetings I have had with you and with other Senators
from New England, I have learned that there is great concern about
conflicts between maintaining the traditional commercial fishing base
and heritage in the region and what NOAA, based on its considerable
scientific research, believes is necessary to sustaining the fishery
base there in the years and decades ahead. Despite this conflict, as I
understand it, both NOAA and the fishing industry share a goal of
ensuring there is a healthy and sustainable fishing industry both in
the near term and in the decades ahead. If confirmed, I will work with
NOAA to support the seafood industry and supply chain. I would look
forward to working with you, the Committee, and NOAA to explore options
to promote U.S. seafood through activities such as aquaculture
development, U.S. seafood trade promotion, cooperative research for
fisheries management, and fighting seafood fraud.
Question 7. Mr. Bryson, the iconic groundfish fleet in Maine has
had a difficult transition this year to a catch share program--the
sector management system--where groups of fishermen have been allocated
a certain amount of fish to harvest as a group. While there have been
some positive signs from the first year of this dramatic regime shift,
there is still a great deal of work to be done in order to make this
system more efficient and cost-effective.
Of particular concern to the sectors based in Maine is the high
cost of at-sea monitoring. Monitoring is critical for accurate
assessment and enforcement, but as the program is currently
administered by the National Marine Fisheries Service, it is also very
expensive. Fishermen in the New England Sector program may have to pay
as much as double the cost for at-sea monitoring on the west coast due
to differences in the way the fisheries are prosecuted. In 2012, the
New England fleet will have to absorb this expense if Federal resources
are unavailable and vessel owners are concerned that this cost will be
too much to bear.
In this difficult fiscal climate, I hope that, if you are
confirmed, your leadership of the Department of Commerce will include
finding creative solutions to reduce costs imposed on the private
sector by our regulatory system so that businesses can thrive. The
fishermen in Maine are thinking ahead, and are participating in the
development of electronic monitoring tools to eliminate the need for
human observers.
Given the high costs that are often associated with meeting
regulatory requirements, how would you foster and support this type of
innovative, cost-saving technology, in heavily-regulated industries
such as the fishing industry?
Answer. Throughout my business career, I have supported searching
out innovative, cost saving technology and adopting the most effective
delivery practices to bring the excellent service and products to
customers and the public. If confirmed, I look forward to working with
NOAA to see where they can successfully bring those concepts to the
struggling fishing industry. I also would look forward to working with
the fishing industry, you, and the Committee to hear ideas in this
area.
______
Response to Written Questions Submitted by Hon. Jim DeMint to
John Bryson
Question 1. Mr. Bryson, in your prepared statement, you write,
``The American people expect their government to do more with less.''
The President's 2012 budget request for the Commerce Department--
excluding the Census Bureau and Patent and Trademark Office (PTO)--is
more than 20 percent higher than 2009 enacted levels. If confirmed,
will you commit to delivering a budget request to this committee next
year that reduces FY13 Department of Commerce spending, not including
the Census Bureau and PTO, to FY09 levels? What specific cuts will you
make?
Answer. As you know, work has already begun on the FY13 budget. I
look forward to being confirmed as soon as possible so I can
immediately engage in that process. I am very committed to reducing
expenditures; however, I would like to be able to take a deep look at
the budget before I provide specific examples on where cuts should be
made. I will be happy to discuss Commerce's budget with you further if
I am confirmed.
Question 2. In your prepared statement, you write, ``I'm committed
to helping simplify regulations that are difficult to understand,
eliminate regulations that are ineffective and speed up regulatory
decisions so American businesses can have the certainty they need.'' Do
you have any specific examples of regulations within the Department of
Commerce's jurisdiction that you will eliminate? If not, will you
commit to providing such examples to this committee within 90 days, if
you are confirmed?
Answer. Yes, if confirmed, I will provide the Committee examples
within 90 days. As a former utility company executive, I am familiar
with the complexities and challenges of complying with a myriad of
state and Federal regulatory requirements. I agree with the President
that Federal agencies need to review existing regulations and modernize
or eliminate regulations which are outdated. I believe we can fulfill
our responsibility to protect health and safety while promoting job
growth and innovation. If confirmed, I will work to ensure the Commerce
Department lives up to this directive. Moreover, I will be a voice in
the Administration for simplifying regulations that are difficult to
understand and eliminating regulations that are unnecessary.
As you know, regulations promulgated by the Commerce Department are
largely on export control items within the Bureau of Industry and
Security and fishery regulations issued by NOAA and written, in
accordance with the Magnuson-Stevens Act, in conjunction with the
regional fishery management councils. I understand that these
regulations are under review and I was pleased to learn that the
Commerce Department's Bureau of Industry and Security (BIS) is working
to streamline their regulatory processes in order to strengthen our
national security and make American companies more competitive abroad.
If confirmed, I will work to ensure all bureaus in the Department of
Commerce are taking steps to minimize their regulatory burden without
undermining their responsibility to safeguard the health and safety of
the American people.
Question 3. You mention President Obama's goal of doubling U.S.
exports by the end of 2014. There is much talk about the benefits
awaiting our economy and citizens upon passage or extension of Free
Trade Agreements and Preferences, including those with Korea, Panama,
and Colombia. In fact, the President himself says these agreements will
create jobs in America. Unfortunately, his administration is holding
these deals and their economic benefits hostage in order to further
expand the welfare state, in this case through a massively expanded
Trade Adjustment Assistance program. Do you believe more trade
necessitates more welfare?
Answer. I support the pending trade agreements with South Korea,
Colombia, and Panama, because they will open doors to American goods
and services in those countries. We have the most open market in the
world. We need trade agreements to give American companies access to
overseas markets. I know the inclusion of Trade Adjustment Assistance
is something the Administration and the Congress are discussing, but,
as I am not confirmed, I am not part of those discussions. I believe
these trade agreements are beneficial and should be enacted as quickly
as possible, and I hope an agreement can be arrived at soon.
Question 4. You spent some time and made a great deal of money in
the highly regulated energy industry. Do you believe it is important
for America's economic expansion to have access to reliable and
inexpensive domestic energy?
Answer. I do. If confirmed, I look forward to working with Energy
Secretary Chu to achieve this goal.
Question 5. If confirmed, will you support any type of carbon tax
or cap-and-trade scheme?
Answer. I believe most decisions on issues related to this type of
energy policy would be made at the Department of Energy. However, if
aspects of it come to my desk, I assure you that, if confirmed, I will
always take into consideration the concerns and viewpoints of the
business community. I will look forward to further engaging you on this
important issue.
Question 6. Will you ensure that NOAA is not a hindrance to the
development of domestic oil and gas supplies?
Answer. The President has pledged that by 2025, we will reduce our
net oil imports by one-third. If confirmed, I would ensure the Commerce
Department is helping to achieve that goal. The Commerce Department's
role in domestic oil production is largely limited to consulting on the
permits the Interior Department issues for drilling, as well as NOAA
permits regarding the impacts on marine life as required by the Marine
Mammal Protection Act and the Endangered Species Act. If confirmed, I
will work to ensure the Commerce Department is responsive in evaluating
requests for permits or consultations on behalf of domestic oil
production.
Question 7. Mr. Bryson, you sat on Boeing's Board for more than a
decade. As you are aware, the National Labor Relations Board (NLRB) has
sued Boeing on the claim that building a production line in a right-to-
work state, South Carolina, was retaliation against a union that
repeatedly went on strike at their facilities in Washington. Do you
believe this action by the NLRB will ultimately create more jobs in
America, or increase American exports, or create a climate that
encourages domestic business expansion?
Answer. As a member of Boeing's Board of Directors, I voted to
locate the Boeing production facility in South Carolina because I
believed that was the right decision for the company. If confirmed I
would be recused from participating in matters in which Boeing is a
party before the Federal Government for at least two years.
Question 8. As you know, consumer privacy and data security will
continue to be closely examined by this committee. The rapid growth and
dynamic nature of online commerce make our policy considerations
especially complex and impactful. Do you believe that using personally
identifiable information for the targeted marketing of products and
services to those who have demonstrated a possible interest should be
outlawed unless an advance affirmative consent is obtained?
Answer. The Internet economy has sparked tremendous innovation, and
the Internet is an essential platform for economic growth, domestically
and globally. New technologies have enabled large-scale collection,
analysis, and storage of personal information that is becoming vital to
this economy, but also creates risks to individual privacy. Privacy is
a key ingredient for sustaining consumer trust, which in turn is
critical to realize the full potential for innovation and the growth of
the Internet. I have not yet engaged in the very specific question you
raise about targeted marketing, but I understand that the Department of
Commerce has been hard at work engaging stakeholders to identify ways
to strengthen consumer privacy while also promoting innovation. If
confirmed, I will continue the work of the Department's Internet Policy
Task Force and work with regulatory and enforcement agencies such as
the FTC to develop a mutually acceptable solution.
______
Response to Written Questions Submitted by Hon. Roger F. Wicker to
John Bryson
Question 1. You have been a strong proponent of cap-and-trade and
other renewable energy initiatives. The Natural Resources Defense
Council, which you helped found, has called for additional
environmental restrictions prior to the resumption of drilling
following the BP oil spill. The use of alternative and renewable energy
is an important component of diversifying our future energy supply.
However, we must also fully utilize the oil and gas resources that are
domestically available in order to reduce our dependence on foreign
oil, create jobs, and contribute to the national economy. How will you
foster the development of domestic oil production in order to reduce
our dependence on foreign oil?
Answer. As a former CEO of a major utility company, I am familiar
with the challenges of meeting the growing demand for energy in the
modern world. Without a doubt, we must safely and efficiently utilize
our existing domestic energy resources, such as coal and petroleum, to
meet the demand for energy and fuel today and reduce our dependence on
foreign oil.
If confirmed, I will work to ensure the Commerce Department is
responsive in evaluating requests for permits or consultations on
behalf of domestic oil production. If confirmed I will also work to
focus the resources of the Commerce Department on tapping the full
economic potential of the clean energy sector to help meet our energy
needs in the future and create good paying jobs here at home.
Question 2. American jobs and economic growth are influenced by our
ability to enter into trade agreements with foreign countries. These
trade agreements ensure that U.S. products efficiently enter foreign
markets and can enjoy a competitive advantage over other countries. We
also need to ensure that domestic products remain competitive in the
U.S. against foreign imports. What are your plans to foster economic
development and job growth in the area of foreign trade?
Answer. I agree that American jobs and economic growth are strongly
influenced by the health of U.S. exports. If confirmed as Secretary of
Commerce, I will make doubling U.S. exports by the end of 2014 as laid
out in the President's National Export Initiative a top priority. I
support the pending trade agreements with South Korea, Colombia, and
Panama, because they will open doors to American goods and services in
those countries.
If confirmed, I would also seek to expand the breadth and depth of
the U.S. exporter base. Today, only 1 percent of U.S. companies export
and, of that 1 percent, 58 percent export to only one market. I would
work to strengthen our efforts to educate U.S. companies about
exporting opportunities, connect them directly to foreign buyers, and
address trade barriers they encounter overseas.
In addition, if confirmed, I would prioritize the role that the
Department of Commerce plays in supporting the implementation and
monitoring of trade agreements to ensure U.S. businesses and workers
reap the benefits, and in enforcing our existing trade laws to ensure a
level playing field for American companies and workers. Additionally,
if confirmed, I would continue to make certain that Commerce provides
quality economic and statistical information about trade agreements and
their impacts on the U.S. economy.
Question 3. How will you improve the competitiveness of domestic
products in both international and national markets?
Answer. The Department of Commerce has the expertise to help U.S.
manufacturing and service industries sustain and maintain their
competitiveness internationally, as well as encourage the development
of innovative products and services. If confirmed, I will ensure that
the Department acts strategically to increase trade and investment in
the United States, as well as encourages the development of innovative
products and services.
I understand that the Department must leverage opportunities where
U.S. industries are currently competitive, focus sharply on where we
can significantly increase the volume and value of our exports that
support U.S. jobs, and measure what we achieve. This strategic approach
must be data-driven and based on the astute development and
implementation of domestic and international policies in coordination
with relevant U.S. agencies and input from U.S. industry and other
stakeholders.
If confirmed, I will advocate for U.S. industries in the global
market place, work to remove trade barriers and enforce trade rules
strenuously, and reduce unnecessary regulatory burdens on U.S.
companies. I would also actively promote exports of U.S. goods and
services that support U.S. jobs. Finally, I think there could be value
in working with U.S. companies to assist them in adapting their
operations in meet the demands, not only of the U.S. market, but
potentially attractive markets outside the U.S.
Question 4. An investigation of the National Marine Fisheries
Service (NMFS) last year discovered that fishermen in the Northeast
were subject to excessive fines and other inconsistencies. Last month,
current Commerce Secretary Locke returned $650,000 to the fishermen of
that region as compensation for unfair penalties and an acknowledgment
of wrong-doing toward the industry. How would you continue Secretary
Locke's work to ensure consistency within the National Marine Fisheries
Service?
Answer. Fishermen--commercial and recreational--are the lifeblood
of many of our coastal communities. America's fishermen, many of them
small businessmen, support vital jobs in our coastal communities. I
have heard from people at the Commerce Department and read in the news
of these unfortunate circumstances. An effective enforcement program
ultimately protects the business interests of fishermen as well as the
marine environment but it must be carried out with well understood
disciplines, as is true in all forms of public enforcement work. I
understand NMFS has implemented significant reforms to its enforcement
program and, if confirmed, I pledge to provide continued leadership on
this issue.
Question 5. While inconsistencies were identified in the Northeast
region, the Gulf of Mexico fisheries management council has worked hard
to develop policies that have broad support. How will you ensure that
effective management practices are maintained?
Answer. I understand that NOAA implemented significant reforms to
its enforcement program in order to increase transparency and
strengthen public trust. If confirmed, I will work with NOAA to provide
the leadership and oversight necessary to ensure enforcement reforms
are maintained.
Question 6. On May 31, four conservation groups issued a 60 day
notice of intent to sue Federal agencies regarding the unusually high
number of sea turtle strandings in the Gulf of Mexico this year. The
lawsuit claims that sea turtles are dying in shrimp nets due to a lack
of NMFS enforcement for turtle excluder devices in shrimp trawler nets.
The lawsuit recommends an emergency closure of the Gulf shrimp trawl
fishery. This could have a devastating impact on fishermen who are
struggling to recover from the Mississippi River flooding. What steps
would you take to prevent the shrimp trawl fishery from closing due to
these concerns?
Answer. If confirmed, I look forward to working with you, NOAA and
the industry to quickly become versed in this issue and assist NOAA in
balancing the protection of sea turtles and the health of the Gulf
fishing industry.
Question 7. What is your record of financial contributions to the
NRDC?
Answer. As I have shared previously, I helped found the NRDC out of
law school and worked there for a little over four years. Since leaving
NRDC in 1974, I have not had any ongoing functional role or association
with them. At times, I have found that I disagree with some of NRDC's
positions and found myself on the other side of the table when they
opposed some of Edison's business initiatives.
Over the years, my wife and I have given money extensively to
various charitable causes. We have donated to the NRDC periodically
during the almost thirty-seven years since I last worked there. But the
amounts that we have given to NRDC do not approach the amounts given to
the most significant recipients of our charitable giving, which include
the California Institute of Technology, Stanford Business School,
Stanford School of Education, the Polytechnic School, and a variety of
Los Angeles area non-profits.
______
Response to Written Questions Submitted by Hon. Johnny Isakson to
John Bryson
Question 1. Mr. Bryson, the widening of the Panama Canal is almost
completed, the global fleet of post-Panamax size vessels are entering
service, and U.S. ports do not have the infrastructure in place to
support these vessels. As we discussed in my office the Savannah Harbor
Expansion Project is underway with the ultimate goal of deepening
Savannah Harbor to 48 feet in order to accommodate these vessels, and
because of the unique nature of the authorization the Secretaries of
the Army Corps of Engineers, Interior, Commerce, and the EPA
Administrator have to sign off on the project.
Studies on SHEP have been going on for 10 years. As we also
discussed in my office a sub-agency of Commerce, NOAA, is holding up
the final approval because of their insistence that a dam that lies
187.3 miles upriver from Savannah and that provides water retention for
the communities of Augusta, Georgia and Aiken, South Carolina be
removed, against the wishes of the community I might add. This is in
order to accommodate the passage of the blunt-nose sturgeon. I would
also add that the other agencies have instead suggested that a fish
ladder be put in place, but NOAA's recalcitrance on this matter is
holding up the approval of the project. On April 15th I sent a letter
to NOAA Administrator Dr. Lubchenco in which I made suggestions on
possible alternatives to blowing up the dam, and asking for a speedy
reconciliation on this matter. On June 17 I received the attached
response, which really was a ``non-response,'' which says they will
continue to work toward a solution. It clear from her response, that a
decision will only be made when directed to by the Secretary of
Commerce. It is time for NOAA to stop filibustering, and time for them
to go ahead and take a rather simple step or two to finalize a plan
rather than continuing to ``seek a solution.''
Meanwhile, the longer we wait, the more our national port
infrastructure will not be ready, and the more our exports and economy
will suffer.
In your role as Commerce Secretary, you have the responsibility to
balance environmental stewardship with economic development and promote
exports and commerce. In your view, at what point is it appropriate for
the Commerce Secretary to step in and direct NOAA to make a decision?
If confirmed, what timeline can you give me for action on this issue?
Answer. I appreciated the conversation we had about this issue. I
believe in timely action and responses on vital issues like this and
clear communication with stakeholders if there are necessary delays. I
have not been privy to intra-departmental information on this issue so
it would be difficult to provide a timeline at this point. If
confirmed, I will put a priority on this and will take a close look at
NOAA's conclusions and why they have reached them and will get back to
you as soon as I reasonably can.
Question 2. As a former member of the Board of Directors at Boeing,
do you think Boeing is an ethical company who treats their employees
well?
Answer. I strongly believe Boeing is an ethical company that treats
its employees well.
______
Response to Written Questions Submitted by Hon. Patrick J. Toomey to
John Bryson
Question 1. Do you support government imposed limits on carbon
dioxide emissions? Please explain the impact you believe such a policy
would have on energy prices, jobs, and the economy generally.
Answer. I share the President's commitment to look for sensible
means to address our Nation's energy challenges that support job
creation and economic growth. As CEO of Edison International, I had the
responsibility to ensure the long-term viability of the company to its
shareholders and customers. Within the first year following my
retirement, the company joined most other U.S. investor owner utilities
in supporting the final House bill on carbon emissions. Businesses
greatly value reasonable regulatory consistency and predictability.
Many American companies--including Ford, Alcoa, DuPont, and Dow
Chemical--all had the same position: that a market-driven approach to
reducing carbon emissions made sense and offered valued predictability
for the future. Companies like those make investments to serve their
customers' needs and which their customers value. I think it is highly
probable that each of those companies, at that time, had concluded that
it was in the best interest of their respective businesses and the
customers they served to have the draft legislation proposed (with
whatever possible changes they thought might be possible prior to any
final adoption) than the uncertainties that they saw then without
support of the bill. Businesses need certainty, in terms of regulatory
consistency and predictability. This kind of business certainty was
important for an energy company like Edison to make the kind of
investments required to grow and stay competitive, particularly the
long term capital investments that create construction and other
related jobs.
Question 2. Do you believe that the Federal Government should
subsidize and/or mandate the use of renewable energy?
Answer. If confirmed as Commerce Secretary, I do not believe this
type of energy policy would be within my purview at the Department of
Commerce.
Question 3. What policies do you plan to implement to promote job
creation, economic growth, and drive U.S. competitiveness in the global
marketplace?
Answer. The President has said the recovery is not complete until
every American who wants a job has one. If confirmed, my top priority
will be to drive job creation by spurring economic growth. There is no
single solution or silver bullet, but I believe we should focus on the
following, each of which will play a distinct yet interrelated role in
promoting job creation, expanding economic growth, and fostering
American companies' competitiveness in the global economy:
Expanding exports of U.S. goods and services through the
National Export Initiative;
Implementing pending trade agreements, which open markets
for American businesses;
Enforcing our trade laws to enable American firms to compete
on a level playing field;
Modernizing our government by eliminating needless
regulatory burdens;
Reforming our corporate tax code to ensure the United States
remains an attractive place to do business;
Promoting innovation that translates into business and job
creation through strategic investments in research and
development, speeding commercialization, and ensuring a strong,
fast and sound patent system; and
Strengthening manufacturing through partnerships between
government, industry and academia.
Question 4. Do you believe the pending free trade agreements with
Korea, Colombia, and Panama will create jobs and grow the economy in
the United States?
Answer. Yes, I believe the pending trade agreements with South
Korea, Colombia, and Panama are an important part of a comprehensive
trade agenda that will spur economic growth, increase exports, and
create jobs in the United States. We have the most open market in the
world. We need trade agreements to give American companies access to
overseas markets.
Question 5. What impact will FCC mandated open Internet rules
(``net neutrality'') on broadband service providers have on job
creation and investment in the communications sector?
Answer. An open Internet is an integral component of our effort to
advance American innovation, increase investment in the communications
sector, and promote greater economic growth, and job creation.
President Obama has pledged to preserve the free and open nature of the
Internet while encouraging innovation, protecting consumer choice, and
defending free speech. And he has committed that his Administration
will remain vigilant and see to it that innovation is allowed to
flourish, that consumers are protected from abuse, and that the
democratic spirit of the Internet remains intact. I share his
commitment and, if confirmed, look forward to working to ensure that
the Internet remains an engine of economic growth and opportunity for
the American people.
Question 6. There is currently a significant backlog of
applications at the Patent and Trademark Office. It can take nearly 3
years for a patent to issue. What plans do you have to address this
backlog?
Answer. It is my understanding that the PTO has developed a bold
strategic plan to effectively address currently unacceptable levels of
patent backlog and pendency. If confirmed, I will work with the PTO and
the Congress to ensure that appropriate progress is being made in
achieving the stated goals. An essential component of success is
assurance that the PTO has access to all its fee collections to fund
its operations.
______
Response to Written Questions Submitted by Hon. Marco Rubio to
John Bryson
Question 1. Fisheries are a vitally important industry to the State
of Florida. The fishing industry in Florida brings in $12.8 billion
annually. More than half of this ($7.6 billion) is brought in by
recreational fishing, supporting 131,000 jobs throughout the state.
What is your vision for fisheries management in the United States?
Answer. I grew up in Oregon, where my family and I enjoyed
recreational fishing off the coast and came to know something about the
important commercial fishermen's businesses there. Moreover, I've heard
from many friends of the wonderful fisheries off the Florida
coastlines. As I understand their respective roles, NOAA and the
fishing industry share a common goal--a future in which there are
healthy fish stocks that support vibrant recreational and commercial
fishing industries. To ensure that happens, NOAA's science must be
sound and, for trust, it must also be transparent. Also, fair and
transparent enforcement practices, including the recent reforms put in
place must be consistently executed. If confirmed, I look forward to
working with Congress, NOAA, the fishing industry and the fishery
management councils to ensure that the public fishery management
process continues to support that very important common goal.
Question 2. I understand that you supported a cap-and-trade program
as it moved through Congress in 2009. There is a similar program in
fisheries management called catch shares. What are your views on catch
share programs? What role do you see for them in fishery management
going forward?
Answer. As I understand it, catch share programs are one of many
management tools at the disposal of fishery managers to sustainably
manage fisheries. They show great success in some places, but are not
the right tool for every situation. NOAA does not require their use,
and I will not require their use, if confirmed.
Question 3. In the FY 2011 budget, the Administration transferred
$6 million from the cooperative research program to the national catch
share program and an additional $11.4 million from the fisheries
research and management program to the national catch share program. Do
you support this budget initiative?
Answer. I am not yet knowledgeable about the details of NOAA's
budget and changes made in it in the past year. If confirmed I look
forward to working with you with NOAA and other affected interests to
understand the effects of these and other important budget changes.
Question 4. It is my view that more adequate data collection is
necessary to improve fishery management programs, particularly in the
Gulf of Mexico and South Atlantic. Are you willing to commit to work
with my office and this Committee to make necessary improvements in
data collection and stock assessments going forward?
Answer. Yes. I commit to work with your office and this Committee
on this important subject, if confirmed. It is important that NOAA's
science is robust and transparent to credibly and effectively sustain
healthy fish stocks and fishing industries.
Question 5. As you know, Mr. Bryson, we are still waiting to
receive the Colombia, Panama, and Korea free trade agreements from the
Administration. In your view, how important is it to get these trade
agreements enacted as quickly as possible?
Answer. The trade agreements with Colombia, Panama, and South Korea
are an important element of a comprehensive trade agenda that will spur
economic growth, increase exports, and create jobs in the United
States. They will create significant new opportunities for American
workers by opening the Colombian, Panamanian, and South Korean markets
and reducing trade barriers. The sooner these agreements enter into
force, the sooner these benefits can begin accruing to American
workers, farmers, and businesses.
Question 6. The NTIA and Dept. of Commerce are responsible for
overseeing the Federal Government's use of spectrum. There have been
some questions about how Federal agencies are utilizing their
spectrum--whether they are using it effectively and efficiently,
whether they have too much spectrum, etc. If we are going to meet the
President's wireless broadband goals, we must ensure that Federal
licensees are using their spectrum effectively, and if they are not,
the NTIA should look at other uses for that spectrum, including making
it available for commercial providers. Do you agree that ensuring that
spectrum is being used effectively should be a priority of the NTIA and
Dept. of Commerce?
Answer. Given the positive impact of communications technologies on
U.S. economic growth and job creation, we must optimize the efficient
use of spectrum for the communications sector, including freeing up
certain portions of the radio spectrum band that are currently used by
Federal agencies.
Question 7. If federally licensed spectrum is not being used
efficiently, will you work with the NTIA to look at alternative uses
for the spectrum?
Answer. If confirmed, I will give high priority to implementing the
President's plan to free up 500 MHz of spectrum--including spectrum
currently used by Federal agencies. I also expect to work not only with
NTIA, but also the FCC and other Federal agencies to the end of making
additional spectrum available to commercial users who can make
efficient use of it to advance our country's economy.
Question 8. Will you work with the NTIA to make the underutilized
spectrum available for commercial providers?
Answer. If confirmed, I will work closely with NTIA to ensure that
spectrum found to be underutilized by either commercial or Federal
users is put to its best use, without jeopardizing the ability of
Federal agencies to execute their missions and while ensuring Federal
agencies have the resources they need to plan and carry out these
tasks.
Question 9. Do you believe that underutilized spectrum should be
made available to commercial providers to meet the goals of the
National Broadband Plan?
Answer. The President's wireless initiative, which would nearly
double the amount of spectrum currently available for commercial
wireless broadband, is critical to delivering the benefits of
broadband--including increased innovation, economic growth and job
creation--to all of the country. As discussed above, if confirmed, I
will work closely with NTIA to ensure that spectrum found to be
underutilized by either commercial or Federal users is put to its best
use. Broadband is key for opening up opportunities and markets for
businesses and the job creation that comes with it.
Question 10. The wireless industry is facing a spectrum crunch due
to exploding demand for devices like smart phones and tablets.
Therefore, the wireless industry is asking to purchase spectrum for
billions of dollars from the Federal Government and in return they will
continue to invest in infrastructure, develop new and cool products and
services and create jobs. This will also result in much needed funds
for deficit reduction. The President's National Broadband Plan
recommends that an additional 500 MHz of spectrum should be made
available for commercial broadband over the next 10 years. Mr. Bryson,
can you tell us how you will work with Federal Government users of
spectrum to meet these National Broadband Plan recommendations?
Answer. I agree that the exponential growth of spectrum-dependent
technologies and wireless devices, such as smartphones and iPads, is
increasing faster than the amount of airwaves that are currently
available to commercial wireless broadband providers. Moreover, given
the positive impact of communications technologies on U.S. economic
growth and job creation, we must optimize the efficient use of
spectrum, including freeing up portions of the radio spectrum band that
are currently used by Federal agencies. If confirmed, I will give high
priority to working to ensure that the National Telecommunications and
Information Administration (NTIA), in conjunction with the Federal
Communications Commission, meets the President's goal of identifying
500 MHz of commercial and Federal spectrum that can be reallocated for
commercial wireless broadband use over the next 10 years.
Question 11. If confirmed, you will play a vital role--through the
U.S. Patent and Trademark Office--in the protection of intellectual
property. Ideas, inventions, and creative expressions are being stolen
every day, including everything from trade secrets and patents to
movies, music, and software. And the threat is growing because of the
rise of digital technologies and Internet file sharing.
Adding to this problem is the fact that much of the theft takes
place overseas, where our ability to seek justice is limited. All told,
intellectual property theft costs U.S. businesses billions of dollars a
year, and robs the Nation of jobs and lost tax revenues, and undermines
our competitiveness. If confirmed, will you make the protection of
American intellectual property a priority as Secretary?
Answer. Should I be confirmed, I will ensure that the domestic and
international protection and enforcement of intellectual property
rights will continue to be a high priority at the Department of
Commerce.
Question 12. What are your views on protecting intellectual
property?
Answer. The effective protection and enforcement of intellectual
property in the U.S. and abroad is critical to promoting innovation,
economic growth and the creation of jobs. Accordingly, I believe that
it must remain a high priority at the Department.
Question 13. With more than 95 percent of the world's customers
living outside of the United States, I believe it is essential to
America's continued competitiveness and export growth that the
administration advance the conclusion and implementation of robust
trade agreements that include strong intellectual property provisions
that protect America's creations and innovations. Can you assure me
that, if confirmed, you will make it a top priority to work with USTR
and other agencies and departments to ensure the Trans-Pacific
Partnership Agreement (TPP) includes modern IP provisions that are at
least as ambitious as those contained in the recently finalized U.S.-
Korea Free Trade Agreement (KORUS) agreement?
Answer. The Department of Commerce, through its Patent and
Trademark Office and the International Trade Administration, works
closely with the USTR and other agencies on the necessary inclusion of
robust intellectual property provisions in international trade
agreements. If confirmed, I assure the Committee that the Department's
role in seeking modern IP provisions in international trade agreements
will continue.
Question 14. As you know, intellectual property theft is costing
U.S. businesses billions of dollars per year. In recent years, much of
this illegal activity has moved to the Internet where rogue websites
currently profit by offering illegal copies and streams of copyrighted
content and selling counterfeit products. Not only do these rogue
websites threaten Florida businesses in the innovative and creative
sectors, but my state's large senior population is also particularly
vulnerable to being tricked by Internet crooks who often sell
counterfeit products--including potentially dangerous, fake
medications. There is no reason the United States should continue to
endure the theft of its most creative and innovative products, which is
why I recently became a cosponsor of bipartisan legislation that would
help cut off these websites from revenue streams and support services
they rely upon in the U.S. marketplace. Will you commit that under your
leadership the Department will take a close look at this problem and
work with Congress on legislative solutions?
Answer. I am certainly aware of the extreme harm caused by illicit
websites that peddle counterfeit and pirated products. This theft of IP
stifles innovation and creativity, threatens U.S. businesses and jobs,
and poses health and safety risks to our consumers. If confirmed, I
look forward to working with the Congress to develop effective
legislative solutions to this serious problem.
Question 15. Last year the $759 billion travel industry generated a
total of $1.8 trillion in total economic output. Analysis shows that if
the U.S. recaptured its historic share of worldwide overseas--or long-
haul--travel by 2015 and maintained that share through 2020, it would
add nearly $100 billion to the economy over the next decade and create
nearly 700,000 more U.S. jobs. Increasing America's share of worldwide
long-haul travel is a no-brainer and, with the right policies, should
be relatively easy to do. And obviously tourism is an important
economic engine in Florida. Last year, domestic and international
travelers spent over $70 billion in Florida--that's 10 percent of how
much was spent in the U.S. last year. And, tourism accounts for over
750,000 jobs in my state.
In an op-ed in The Wall Street Journal on June 13, 2011, the Co-
Chairs of the President's Jobs Council highlighted travel and tourism
as a key economic sector of our economy that can deliver hundreds of
thousands of jobs if actions are quickly taken to allow the U.S. to
regain market share in the global travel market. One solution they
highlighted was to make it more efficient to enter the U.S. through
improved visa processes. While the Commerce Department does not have
sole responsibility for ensuring the competitiveness of the U.S. travel
and tourism industry, please give us your thoughts on what role you can
play to identify and remove the barriers that have allowed our share of
the overseas travel market to drop from 17 percent to 12 percent over
the last 10 years.
Answer. From my time on the Board of Directors of the Walt Disney
Company, I have focused on tourism in the Los Angeles metropolitan area
and understand just how vital the industry tourism is to our economy.
If confirmed, I will provide leadership to ensure the Tourism Policy
Council is identifying the barriers that have allowed America's share
of the overseas travel market to drop and see to it that a credible and
sufficiently specific plan for reversing that trend is put in place and
executed. I strongly believe in the importance of regaining our
strength in tourism and the jobs that come with it.
Question 16. In order to ensure that the United States' national
interest in travel and tourism was fully considered in Federal
decisionmaking, Congress established the Tourism Policy Council. The
Council, composed of the leaders of nine Federal agencies, is chaired
by the Secretary of Commerce. By statute, the Council is required to
submit an annual report to Congress on its activities and efforts to
coordinate the policies and programs of member's agencies that have a
significant effect on international travel and tourism yet such a
report has not been consistently presented to Congress for review. If
confirmed, will you commit to submitting this annual report as
prescribed by statute?
Answer. If confirmed, I will make sure that the report is submitted
to Congress before the end of this Fiscal Year to keep you apprised of
the work of the Tourism Policy Council.
Question 17. Furthermore, engagement with the private sector and
the general public is critical to the Tourism Policy Council's success.
While the Tourism Policy Council is allowed to close a meeting to
prevent the public disclosure of nonpublic information, it is not the
intent of Congress to close all meetings off to the public. If
confirmed, would you allow for open meetings of the Tourism Policy
Council in order to ensure transparency and public engagement?
Answer. It is my understanding that the Tourism Policy Council
currently conducts two principals meetings per year, led by the
Secretary of Commerce. If confirmed, I will look into this issue
further to better understand current practices and examine ways to open
the meetings to the public as much as practicable. In addition,
consideration should be given to engaging the travel and tourism
industry's stakeholders in the Tourism Policy Council's working group
meetings as appropriate.
Question 18. Some members of the Commerce Committee have expressed
a need to improve the visa process in order to make the U.S. more
competitive in the world travel market. We hear reports of companies
losing business deals because they cannot get buyers into trade shows
or into their office to purchase products as a result of delays in visa
processing.
It seems that we should conduct an assessment of the impact the
existing visa process is having on American businesses ability to grow
exports. We should also seek to determine how many leisure and business
travelers want to come to the United States but never bother to apply
for a U.S. visa because they are deterred by delays in the process. If
confirmed, would you seek to conduct this type of assessment and
deliver a report to the President and Congress on the issue?
Answer. If confirmed, I would follow up promptly on this concern.
______
Response to Written Questions Submitted by Hon. Kelly Ayotte to
John Bryson
Question 1. New Hampshire epitomizes a small business state, and
free trade is so important to our local economy. In fact, in 2010
alone, $4.2 billion of merchandise was exported from New Hampshire,
$1.8 billion of which was to FTA partners. 14,489 jobs were directly
supported by exports and we proudly have 104 exporting companies. There
has been much debate and political posturing lately over Free Trade
Agreements. Do you unconditionally support FTAs with Colombia, Panama
and South Korea to get our economy back on its feet? Specifically,
would you support FTAs without the inclusion of Trade Adjustment
Assistance?
Answer. I support the pending trade agreements with South Korea,
Colombia, and Panama, because they will open doors to American goods
and services in those countries. We have the most open market in the
world. We need trade agreements to give American companies access to
overseas markets.
I know the inclusion of Trade Adjustment Assistance is something
the Administration and the Congress are discussing, but, as I am not
confirmed I am not part of those discussions. I believe these trade
agreements are beneficial and should be enacted as quickly as possible,
and hope an agreement can be reached soon.
Question 2. You have publicly supported cap-and-trade legislation,
claiming that H.R. 2454 in the 110th Congress was a ``moderate, but
acceptable'' bill. You have also stated that you believe cap-and-trade
legislation is a tax, and that regulations which penalize energy
producers for producing more energy than needed are the best way to
reduce energy consumption and greenhouse gases. Do you stand by these
statements, and if so, what is your expectation of how cap-and-trade
legislation or similarly structured Federal regulations would affect
jobs in this country?
Answer. I believe, overall, that a predictable regulatory
environment is good for American companies and increases their ability
to create jobs in the United States. As such, I share the President's
commitment to look for sensible means to address our Nation's energy
challenges that support job creation and economic growth. As CEO of
Edison International, I had the responsibility to ensure the long-term
viability of the company to its shareholders and customers. Within a
year of the date of my retirement, the company joined the great
majority of U.S. investor-owned electric companies in supporting the
then proposed House bill on reducing carbon emissions. The judgment
then was that the bill as proposed offered a more predictable path
forward for the capital investments we had made and needed
prospectively to make on behalf of our customers and businesses than
the alternative of continued uncertainty. Many American companies--like
Ford, Alcoa, DuPont, Dow Chemical--all had the same position: that a
market-driven approach to reducing carbon emissions made sense and
offered valued predictability for the future. Predictability in turn
made possible greater confidence in making long-term capital
investments. Businesses need certainty, in terms of regulatory
consistency and predictability. This kind of business certainty was
important for an energy company like Edison to make the kind of
investments required to grow and stay competitive, particularly the
long-term capital investments that create construction and other
related jobs.
Question 3. Over-regulation of the fishing industry and arbitrary
fines imposed on fishermen continue to cause significant harm to our
fishing communities in New Hampshire and throughout the northeast.
During recent Economic Development Administration (EDA) hearings in New
England, fishermen testified that catch shares are systematically
driving small, independent fishermen out of business and creating an
economic disaster for fishing communities. As Secretary of Commerce,
can you assure us that you will repair the damage that has been done
and get our fishermen back to work? What steps will you take to do
this?
Answer. Fishermen and the fishing industry are vital elements of
our coastal communities and the U.S. economy. If confirmed, I will work
with NOAA to continue efforts to strengthen public trust in NOAA's
ability to soundly, fairly and effectively carry out its
responsibilities under the Magnuson-Stevens Act, as reauthorized in
2006. It is important that NOAA's science is at all times sound and
transparent in carrying out its mandate to sustain healthy fish stocks
and fishing industries. In the past when new science became available,
I understand that Secretary Locke raised catch limits. If confirmed, I
commit to you that if there is new science that shows catch limits can
be raised, I will work with NOAA to raise them as expeditiously as
possible. If confirmed, I also promise to continue the reforms that
Secretary Locke put in place to ensure NOAA has a fair and effective
enforcement program, which strengthens compliance assistance and
creates a level playing field for fishermen.
Question 4. At the start of your career you were co-founder and
attorney for the Natural Resources Defense Council (NRDC), which has
been active in court cases opposing fishing industry interests and a
lead litigator in securing reduced quota for fisheries. According to a
2008 report, the commercial and recreational fishing industries in the
United States are worth $163 billion and responsible for 1.9 million
jobs. As Secretary of Commerce, can you assure us that you will work to
strengthen the fishing industry, and that your previous involvement
with the NRDC will not improperly influence your oversight of NOAA
Fisheries?
Answer. I grew up in Oregon where I learned to fish as a young boy.
I spent time along the working waterfronts and with fishermen and
appreciate and value their unique way of life. The commercial and
recreational fishing industry is a vital component of our Coastal
communities and the U.S. economy. If confirmed, I will work to ensure
NOAA's science is accurate and transparent to sustain healthy fish
stocks and fishing industries now and in the future.
Question 5. One of the regulatory agencies responsible for issuing
permits needed for offshore oil and gas exploration is the National
Marine Fisheries Service (NMFS) which falls under NOAA. It is my
understanding that in the past these permits have not always been
issued in a timely manner, which has a significant cost and stalls job
growth. Can you assure us that NMFS and NOAA will work with oil and gas
developers to issue needed permits to allow for exploration?
Answer. It is important that NMFS do all that it reasonably can,
consistent with its responsibilities under Federal law, to issue
permits on a timely basis. There are considerable costs to businesses
due to unnecessarily slow responses. Finally, if confirmed, I will
encourage strong relationships for working together and early sharing
of information and early expression of concerns in order to make the
permit process as productive and timely as possible.
Question 6. The National Association of Broadcasters recently
stated that there is ``no spectrum crunch.'' However, the FCC has
stated that it believes there is a spectrum crunch and we need to free
up in excess of 300 Megahertz in the next 5-10 years to meet growing
demand for broadband. Do you agree with the Broadcasters or the FCC on
the issue of a spectrum crunch? In general, what are your thoughts on
spectrum policy and what is your plan to navigate NTIA, the Department
of Commerce, and the Obama Administration through this issue?
Answer. I am concerned that the exponential growth of spectrum-
dependent technologies and wireless devices, such as smartphones and
iPads, is outpacing the efforts of commercial wireless providers
seeking to devote spectrum to those uses. Given the positive impact of
communications technologies on U.S. economic growth and job creation,
we must optimize the efficient use of spectrum and identify portions of
the radio spectrum band that can be used for commercial wireless
broadband use. If confirmed, one of my priorities will be to work to
ensure that the National Telecommunications and Information
Administration (NTIA), in conjunction with the Federal Communications
Commission, meets the President's goal of identifying 500 MHz of
commercial and Federal spectrum that can be reallocated for wireless
broadband use over the next 10 years. In particular, with respect to
identifying bands currently used by Federal agencies, I believe it is
critical to preserve agencies' ability to effectively execute their
specific missions. Additionally, I support providing agencies with
sufficient resources to plan and carry out these important tasks.
Question 7. As you know, the Department of Commerce is pivotal in
coordinating the United States government's policies in protecting
Intellectual Property. It is estimated that IP generates approximately
$8 trillion annually in gross output and nearly 20 million jobs in the
United States. However, nearly 2.5 million jobs are lost due to
counterfeiting or piracy. Online sales of counterfeit goods are
estimated to be $135 billion globally and the cost of global digital
piracy exceeds $75 billion. Do you have any unique ideas to crack down
on this? What can the government do better to create deterrents to
infringement? What assurances can you give us that IP protection and
enforcement will remain a top priority at the Commerce Department?
Answer. Should I be confirmed, I will ensure that the domestic and
international protection and enforcement of intellectual property
rights will continue to be a high priority at the Department of
Commerce. I will engage appropriate officials within the Administration
with intellectual property responsibilities to, review, explore,
develop and implement those policies designed to most effectively deter
infringing activity here and abroad. As an example of a promising
initiative, it is my understanding that the USPTO is developing a
comprehensive strategy to address infringement of patent rights owned
by U.S. businesses in China.
______
Response to Written Questions Submitted by Hon. John D. Rockefeller IV
to Terry Garcia
Question 1. Mr. Garcia, in your previous positions as Assistant
Secretary of Commerce for Oceans and Atmosphere and Deputy
Administrator of the National Oceanic and Atmospheric Administration
(NOAA), you have managed and overseen the line office responsible for
managing our Nation's fisheries, the National Marine Fisheries Service.
What further actions would you recommend the Fisheries Service take to
achieve economically and ecologically sustainable domestic fisheries?
While our domestic fisheries have are turning the corner, and are
finally on the path to sustainability as overfishing is reduced in our
waters, the rest of the world is a different story. How do you think
the Fisheries Service and NOAA can promote sustainability in the
foreign fisheries that supply over 80 percent of the seafood Americans
consume?
Answer. I think that the National Marine Fisheries Service is
currently employing a variety of tools and programs to help the Nation
achieve economically and ecologically sustainable domestic fisheries.
NOAA shares a common goal with the fishing industry--a future that sees
sustainable fish stocks that support a vibrant fishing industry. NOAA
has been actively working to find innovative ways to work with the
industry. If confirmed, I look forward to working with you, other
Members of Congress and the industry to ensure NOAA remains transparent
and innovative in pursuit of that goal. The National Marine Fisheries
Service already works in the international arena through a variety of
venues to promote sustainable, honest practices in other countries that
create a level playing field for U.S. fishermen. If confirmed, I look
forward to working with NOAA to ensure that the seafood on American
tables is sustainable and supported by a strong domestic industry.
Question 2. Mr. Garcia, you served on President Obama's Oil Spill
Commission and much earlier led NOAA's restoration plan implementation
following the Exxon Valdez disaster. Drawing from your experience, how
likely do you feel it is that we will encounter another oil spill, and
what steps would you take as Assistant Secretary to prevent that
likelihood?
Answer. The Department of Commerce, through the National Oceanic
and Atmospheric Administration, has a wealth of scientific expertise
including spill trajectories, weather forecasts, seafood sampling,
damage assessment, oil clean up, and many other valuable services to
combat oil spills of all sizes. While I hope that another spill the
size of last year's does not occur again, if confirmed, I will ensure
that NOAA's services and expertise remain state-of-the-art and well-
resourced to respond to all oil spills regardless of size.
Question 3. As the backbone of our Nation's ability to observe and
predict weather, NOAA's polar orbiting satellites help save lives and
minimize property damage. However, we find ourselves likely to face a
complete loss of this satellite functionality in a few years as a
result of a funding shortfall in 2011. As the Deputy Secretary of
Commerce, how will you work in the next 4-6 months to get the
Administration's management of the Joint Polar Orbiting System back on
track?
Answer. I believe that this Administration has gotten the polar-
orbiting satellite program back on track from a management perspective.
As I understand it, the remaining challenges to ensuring its success
are fiscal in nature and, if confirmed, I look forward to working with
Congress, NOAA, and the rest of the Administration to ensure that the
program has the funding it needs to provide the life and property
saving information it currently produces.
______
Response to Written Question Submitted by Hon. Maria Cantwell to
Terry Garcia
Question. From the beginning, I have been an adamant opponent of
relocating the Marine Operations Center-Pacific (MOC-P) from the Puget
Sound to Newport, Oregon. For that reason alone, it has been extremely
difficult to get information from the Department on the project. As a
result, I demanded an Inspector General's report of NOAA's MOC-P
acquisition. Have you read the Inspector General's Report? If not, you
should carefully read and evaluate the Inspector General's report and
compare it with your experience at NOAA. At a minimum, I believe you
will be very disappointed with NOAA's process.
I urge you to reach out to MOC-P personnel. As Deputy Secretary, I
want you to hold a closed door meeting with NOAA MOC-P employees,
without senior management. I want you to hear from NOAA employees
themselves about the process of the move, the necessity of maintaining
fleet and collaborative science presence in Seattle. Can you commit to
meeting with NOAA employees in Seattle to discuss this important issue?
Answer. If confirmed, one of my principle responsibilities will be
to oversee the day-to-day operations and management of the Department.
I understand that the Department instituted a number of reforms to its
acquisition process based on lessons learned from the MOC-P. If
confirmed, I look forward to visiting with Department employees and to
hearing how the Department can improve management and operations.
______
Response to Written Question Submitted by Hon. Tom Udall to
Terry Garcia
Question. The Department of Commerce includes a diverse collection
of agencies that work on everything from predicting the weather to
issuing patents. The Department's over-arching mission, however, is to
promote job creation and economic growth. That mission is more
important than ever. As Deputy Secretary, how will you provide
leadership to ensure that the Department of Commerce's diverse
collection of agencies are all working to meet the needs of the people
they serve?
Answer. As a former Assistant Secretary at Commerce, I am well
aware of the Department's diversity. If confirmed, I will use this
experience to focus all of Commerce's bureaus on the singular goal of
increasing job creation and economic growth. I will do this by meeting
with the bureau heads regularly to discuss in-depth what they are
specifically doing to achieve these goals. I will also work to ensure
that proper management of Commerce resources at all levels allows the
Department to concentrate on the big picture of what's best for the
American people.
______
Response to Written Questions Submitted by Hon. Olympia J. Snowe to
Terry Garcia
Question 1. As you know, I am the ranking member of the
subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard.
Commercial fishing interests are committed participants in Maine's
marine resource management, and critical to my state's economic
success. Leading fisheries scientists agree that U.S. fishermen,
subject to the Magnuson-Stevens Act, are among the most heavily
regulated in the world. As a result, depleted resources are rebuilding,
but not without economic costs in the interim. In Maine alone, 23
percent of the crew positions in the groundfish fishery have been lost.
NOAA reports that revenues are up, but clearly our work is not yet
complete.
Recently, NOAA issued an independent report reviewing the New
England Management Process, which concluded that ``many industry
members feel that NMFS no longer has any focus on economic growth of
the industry.'' The Department of Commerce's mission is to promote
economic growth, while a key mission of its largest agency, the
National Oceanic and Atmospheric Administration, is the conservation
and management of marine resources. How would you address the concerns
of the fishing industry, who believe that the Department of Commerce
has worked against them rather than worked to support them? How do you
propose to reconcile these distinct and potentially conflicting
missions in order to create jobs in the seafood supply chain?
Answer. I know from my work with the agency previously and since I
left, that the National Oceanic and Atmospheric Administration's (NOAA)
National Marine Fisheries Service (NMFS) shares a goal with the fishing
industry of ensuring there is a healthy and sustainable fishing
industry in the future. To ensure such an industry exists, we must work
together to ensure that the resources on which the fishing industry
depends are healthy and used sustainably. Constant improvements to
fisheries science are needed to ensure that fishing communities get the
greatest fishing opportunity possible within sustainable levels. If
confirmed, I will work diligently with NOAA to ensure that NMFS'
actions are based on the best available science so that we keep and
create as many jobs as possible in the industry.
Question 2. Mr. Garcia, the iconic groundfish fleet in Maine has
had a difficult transition this year to a catch share program--the
sector management system--where groups of fishermen have been allocated
a certain amount of fish to harvest as a group. While there have been
some positive signs from the first year of this dramatic regime shift,
there is still a great deal of work to be done in order to make this
system more efficient and cost-effective.
Of particular concern to the sectors based in Maine is the high
cost of at-sea monitoring. Monitoring is critical for accurate
assessment and enforcement, but as the program is currently
administered by the National Marine Fisheries Service, it is also very
expensive. Fishermen in the New England Sector program may have to pay
as much as double the cost for at-sea monitoring on the west coast due
to differences in the way the fisheries are prosecuted. In 2012, the
New England fleet will have to absorb this expense if Federal resources
are unavailable and vessel owners are concerned that this cost will be
too much to bear.
In this difficult fiscal climate, I hope that, if you are
confirmed, your leadership of the Department of Commerce will include
finding creative solutions to reduce costs imposed on the private
sector by our regulatory system so that businesses can thrive. The
fishermen in Maine are thinking ahead, and are participating in the
development of electronic monitoring tools to eliminate the need for
human observers. Given the high costs that are often associated with
meeting regulatory requirements, how would you foster and support this
type of innovative, cost-saving technology, in heavily-regulated
industries such as the fishing industry?
Answer. I believe innovation and creativity can create huge cost
savings in industry, and is important in the highly regulated fishing
industry. For example, cooperative research funding has already helped
develop more selective fishing gear which allows fishermen to more
efficiently target healthy stocks while avoiding weak stocks. This can
make fishing businesses more efficient and profitable. This same type
of innovation needs to occur to bring down the cost of at-sea
monitoring. If confirmed, I will seek solutions to help reduce the cost
of at-sea monitoring through innovative technology.
Question 3. Mr. Garcia, as the ranking member of the subcommittee
on Oceans, Atmosphere, Fisheries, and Coast Guard, the concerns of
Maine's fishermen are my concerns. I am sure you are aware of the
challenges facing New England fishermen, given your role as General
Counsel following the Amendment 13 lawsuit and your tenure at NOAA in
the years that followed.
Unfortunately, the fishing industry's interactions with the
National Marine Fisheries Service's Northeast regional office and
science center have been getting steadily worse over the last several
years, culminating in Inspector General reports that highlight
substantive problems with NOAA leadership in my region. A 2009
investigation recommended that NOAA take specific steps to improve
communication of its research results and to strengthen its
relationship with New England commercial fishermen. In 2011, troubling
news emerged about what the IG called ``systemic'' issues in the
regional Office of Law Enforcement. The most telling indication of this
problem was the workforce imbalance in the office, where 90 percent of
the staff were criminal investigators.
In response to my request at the NOAA budget hearing this spring, a
workforce analysis is being conducted and I expect we will find that
reducing the complexity of excessive fisheries regulations would help
our fishermen comply with regulations more effectively than would the
addition of uniformed enforcement agents walking the docks with guns.
Mr. Garcia, given your experience as General Counsel of NOAA and
your familiarity with the fishing industry, what have you learned from
your experience at NOAA, and what insights will you bring now that you
have worked outside the agency for the last twelve years that will
ensure that NOAA leadership improves its relationship with the fishing
industry, and that we will finally begin to move in a more positive
direction? What steps will you take to ensure that the Commerce
Department abandons its adversarial approach to the enforcement of
fishing regulations?
Answer. We must redouble our efforts to improve the relationship
between NOAA and the fishing industry in New England. My experience
working outside the agency will be useful in this endeavor. I
understand that NOAA is implementing significant reforms to its
enforcement program. Critical to these reforms is ensuring the agency
works better with stakeholders to ensure everyone understands how to
comply with the regulations. An effective enforcement program
ultimately protects the business interests of fishermen as well as the
marine environment. If confirmed, I pledge to provide leadership on
this issue to make sure the reforms underway in NOAA's enforcement
program continue.
______
Response to Written Questions Submitted by Hon. Roger F. Wicker to
Terry Garcia
Question 1. Last month, the Bureau of Ocean Energy Management,
Regulation, and Enforcement (BOEMRE) and National Oceanic and
Atmospheric Administration (NOAA) signed a Memorandum of Understanding
(MOU) to increase their coordination when reviewing Outer Continental
Shelf (OCS) oil permits. This MOU, which was a recommendation in the
Oil Spill Commission Report, expands NOAA's role in the oil permit
approval process. How do you envision NOAA fulfilling the MOU
requirements in a timely manner to ensure they do not delay the issuing
of oil and gas permits?
Answer. It is my understanding that this MOU would improve how
BOEMRE and NOAA coordinate and collaborate to ensure energy resources
are developed in an environmentally sound manner that protects marine
life and ecosystems under our respective authorities. This enhanced
coordination will assist in the timely issuance of permits that are
consistent with MOU requirements. If confirmed, I look forward to
continuing to enhance this important partnership.
Question 2. Environmental Impact Statements are currently required
at several different stages of oil and gas exploration, drilling, and
production, during which the Department of Commerce has the opportunity
to comment. What measures will you take to reduce redundancies?
Answer. I understand that the MOU recently signed between the
Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE)
and the National Oceanic and Atmospheric Administration (NOAA) will
allow the two agencies to align their regulatory and decisionmaking
processes and engage early in their respective processes in order to
improve coordination, thereby reducing redundancies in oversight and
regulation. This is an important area and, if confirmed, I look forward
to fostering the ongoing collaboration between NOAA and BOEMRE.
______
Response to Written Questions Submitted by Hon. Marco Rubio to
Terry Garcia
Question 1. What role do you feel marine protected areas serve as a
fisheries management tool?
Answer. Marine Protected Areas (MPA) is one of many tools available
to managers to manage fisheries. Like all available tools, they are not
suited to every circumstance. I understand that many MPAs are
established and managed with the explicit purpose of supporting the
continued extraction of renewable living resources, including fish that
either live within the MPA or depend on the protected area's habitat
for essential aspects of their ecology. Through protection of feeding,
spawning, mating, or nursery areas, MPAs can assist in the recovery of
overfished stocks and in the continued production of those stocks not
depleted.
Question 2. Under what scenario would you deny recreational or
commercial fishermen access to marine areas?
Answer. Access to marine areas is vitally important to
understanding and appreciating them. Therefore, restricting access to,
and use of, marine areas should be done in a manner that is targeted to
clearly defined and measurable goals (for example, to promote increased
fisheries production or to conserve biodiversity) while minimizing
impacts to users. Any decisions to restrict access must have the
benefit of both the best available science and meaningful and rigorous
community involvement and participation.