COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS FOR 2012 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS FIRST SESSION SUBCOMMITTEE ON COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES FRANK R. WOLF, Virginia, Chairman JOHN ABNEY CULBERSON, Texas CHAKA FATTAH, Pennsylvania ROBERT B. ADERHOLT, Alabama ADAM B. SCHIFF, California JO BONNER, Alabama MICHAEL M. HONDA, California STEVE AUSTRIA, Ohio JOSE´ E. SERRANO, New York TOM GRAVES, Georgia KEVIN YODER, Kansas NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mr. Dicks, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. MIKE RINGLER, STEPHANIE MYERS, LESLIE ALBRIGHT, DIANA SIMPSON, and COLIN SAMPLES, Subcommittee Staff PART 6 Page Department of Commerce ..................................................... 1 U.S. Patent and Trademark Office ...................................... 183 National Institute of Standards and Technology ............ 269 National Oceanic and Atmospheric Administration ...... 337 Office of the United States Trade Representative .......... 465 ( Printed for the use of the Committee on Appropriations G N RI A E H with D O R P B1 Y O S B K2 S D mcdonald on VerDate Mar 15 2010 20:18 Jul 28, 2011 Jkt 067061 PO 00000 Frm 00001 Fmt 7513 Sfmt 7513 E:\HR\OC\67061P1.XXX 67061P1 e P A R T 6 — C O M M E R C E , J U S T IC E , S C IE N C E , A N D R E L A T E D A G E N C IE S A P P R O P R IA T IO N S F O R 2 0 1 2 G N RI A E H with D O R P B1 Y O S B K2 S D mcdonald on VerDate Mar 15 2010 20:18 Jul 28, 2011 Jkt 067061 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 E:\HR\OC\67061P1.XXX 67061P1 e COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS FOR 2012 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS FIRST SESSION SUBCOMMITTEE ON COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES FRANK R. WOLF, Virginia, Chairman JOHN ABNEY CULBERSON, Texas CHAKA FATTAH, Pennsylvania ROBERT B. ADERHOLT, Alabama ADAM B. SCHIFF, California JO BONNER, Alabama MICHAEL M. HONDA, California STEVE AUSTRIA, Ohio JOSE´ E. SERRANO, New York TOM GRAVES, Georgia KEVIN YODER, Kansas NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mr. Dicks, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. MIKE RINGLER, STEPHANIE MYERS, LESLIE ALBRIGHT, DIANA SIMPSON, and COLIN SAMPLES, Subcommittee Staff PART 6 Page Department of Commerce ..................................................... 1 U.S. Patent and Trademark Office ...................................... 183 National Institute of Standards and Technology ............ 269 National Oceanic and Atmospheric Administration ...... 337 Office of the United States Trade Representative .......... 465 ( Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE 67–061 WASHINGTON : 2011 G N RI A E H with D O R P B1 Y O S B K2 S D mcdonald on VerDate Mar 15 2010 20:18 Jul 28, 2011 Jkt 067061 PO 00000 Frm 00003 Fmt 7513 Sfmt 7513 E:\HR\OC\67061P1.XXX 67061P1 e COMMITTEE ON APPROPRIATIONS HAROLD ROGERS, Kentucky, Chairman C. W. BILL YOUNG, Florida1 NORMAN D. DICKS, Washington JERRY LEWIS, California1 MARCY KAPTUR, Ohio FRANK R. WOLF, Virginia PETER J. VISCLOSKY, Indiana JACK KINGSTON, Georgia NITA M. LOWEY, New York RODNEY P. FRELINGHUYSEN, New Jersey JOSE´ E. SERRANO, New York TOM LATHAM, Iowa ROSA L. DELAURO, Connecticut ROBERT B. ADERHOLT, Alabama JAMES P. MORAN, Virginia JO ANN EMERSON, Missouri JOHN W. OLVER, Massachusetts KAY GRANGER, Texas ED PASTOR, Arizona MICHAEL K. SIMPSON, Idaho DAVID E. PRICE, North Carolina JOHN ABNEY CULBERSON, Texas MAURICE D. HINCHEY, New York ANDER CRENSHAW, Florida LUCILLE ROYBAL-ALLARD, California DENNY REHBERG, Montana SAM FARR, California JOHN R. CARTER, Texas JESSE L. JACKSON, JR., Illinois RODNEY ALEXANDER, Louisiana CHAKA FATTAH, Pennsylvania KEN CALVERT, California STEVEN R. ROTHMAN, New Jersey JO BONNER, Alabama SANFORD D. BISHOP, JR., Georgia STEVEN C. LATOURETTE, Ohio BARBARA LEE, California TOM COLE, Oklahoma ADAM B. SCHIFF, California JEFF FLAKE, Arizona MICHAEL M. HONDA, California MARIO DIAZ-BALART, Florida BETTY MCCOLLUM, Minnesota CHARLES W. DENT, Pennsylvania STEVE AUSTRIA, Ohio CYNTHIA M. LUMMIS, Wyoming TOM GRAVES, Georgia KEVIN YODER, Kansas STEVE WOMACK, Arkansas ALAN NUNNELEE, Mississippi ————— 1Chairman Emeritus WILLIAM B. INGLEE, Clerk and Staff Director (II) G N RI A E H with D O R P B1 Y O S B K2 S D mcdonald on VerDate Mar 15 2010 20:18 Jul 28, 2011 Jkt 067061 PO 00000 Frm 00004 Fmt 7513 Sfmt 7513 E:\HR\OC\67061P1.XXX 67061P1 e COMMERCE, JUSTICE, SCIENCE, AND RE- LATED AGENCIES APPROPRIATIONS FOR 2012 THURSDAY, MARCH 17, 2011. DEPARTMENT OF COMMERCE WITNESS HON. GARY LOCKE, SECRETARY, DEPARTMENT OF COMMERCE OPENING REMARKS FROM CHAIRMAN WOLF Mr. WOLF. Welcome, Mr. Secretary. Good afternoon. There are going to be a series of votes coming up pretty soon. So we will just proceed. We have a number of issues to discuss with you today with re- spect to the fiscal year 2012 budget. You are requesting $8.8 billion in a new budget authority that amounts to $868 million or about 11 percent higher than the House-passed Continuing Resolution for fiscal year 2011. The largest increases in your budget include an additional $768 million for the National Oceanic and Atmospheric Administration, $145 million for the National Institute of Standards and Tech- nology, $70 million for the International Trade Administration, and these increases are partially offset by reductions in Census totaling $199 million. These funding changes are just a few within Commerce. Prac- tically every account within Commerce is increasing in your re- quest. You are also proposing a number of new initiatives in your budget as well as the termination of a few small but potentially significant programs. The Congress unfortunately will not be in a position to provide such increases. The fiscal crisis facing the Nation is real and will require a level of austerity that goes beyond the President’s budget. So we are going to ask you to help prioritize. And this is not in the statement, but I am sorry to see you go, frankly. And it is probably not a good appointment in all honesty because I think you are engaged in this thing and your ideas with regard to exports. And now you are going to have a vacancy there for a long period of time. But I want to congratulate you on your nomination. But when I heard it, I did not think it was such a good idea because of that very reason. But there are some questions we will have. These are NG not confirmation hearings obviously on China, but I will have some RI EA (1) H with D O R P B1 Y O S B K2 S D mcdonald on VerDate Mar 15 2010 20:30 Jul 28, 2011 Jkt 067061 PO 00000 Frm 00001 Fmt 6633 Sfmt 6633 E:\HR\OC\A061P2.XXX A061P2 e 2 questions with regard to China, to encourage more job growth in manufacturing in this country. I will go to Mr. Dicks if he wants to make a comment and then we will go to your testimony. OPENING REMARKS FROM REP. DICKS Mr. DICKS. Well, thank you, Mr. Chairman. And, Secretary Locke, it is good to see you and we congratulate you on your nomination to be Ambassador to China. We have worked together since you were King County executive and gov- ernor of Washington. And I think you have done a fine job as Sec- retary. We have some great initiatives, the National Export Initiative, the Manufacturing Extension Partnership, just to name two. And we were pleased with your work on comprehensive—with NIST’s effort on comprehensive cybersecurity. I am concerned, and I hope you will have a chance to discuss this during the hearing, on the effects of H.R. 1 on NOAA procurement, acquisition, and construction. And we are concerned about the tsu- nami that has happened in Japan and what the effect of these budget cuts would be on our weather satellites and our buoys out in the ocean which I know are very important. And I hope you could tell us what the impact of the $450 million cut will be in H.R. 1. I think you are in an ideal spot to be able to translate this, and this process is not over yet. We are still try- ing to make sure that we, you know, make appropriate cuts. And if there has been mistakes made, we still have a chance to review this in light of the current circumstances. Thank you, Mr. Chairman. Mr. WOLF. Thank you, Secretary. Proceed. OPENING STATEMENT BY SECRETARY LOCKE Secretary LOCKE. Thank you very much, Chairman Wolf and dis- tinguished Members of the subcommittee. I am really pleased to join you today to talk about the President’s budget request for the Department of Commerce for fiscal year 2012. Since I joined the Department of Commerce two years ago, we have focused on delivering our services more efficiently and at less cost to the taxpayer. Those efforts have paid off. The 2010 Census was completed on schedule and under budget, returning $1.9 billion to the taxpayers. Our Economic Development Administration has cut the time it takes to grant awards from 128 business days to 20 business days. Our Patent Office reduced an application backlog of almost 800,000 when the President assumed office. We have reduced by 10 percent last year even as applications surged by 7 percent. And next month, we will be rolling out and starting a program allowing applicants to have their patents evaluated within one year for a very small extra fee. Our efficiencies and cost savings are not one-time achievements. We have instituted comprehensive performance management proc- G N esses throughout the Department which should help our reforms RI EA stand the test of time. H with D O R P B1 Y O S B K2 S D mcdonald on VerDate Mar 15 2010 20:30 Jul 28, 2011 Jkt 067061 PO 00000 Frm 00002 Fmt 6633 Sfmt 6633 E:\HR\OC\A061P2.XXX A061P2 e 3 And it is in this context of proven savings and performance that I hope the committee will consider Commerce’s fiscal year 2012 budget request. Our 2012 budget request is lean. It cuts outdated programs, drives major efficiencies in others. And our budget incorporates $142 million in savings thanks to significant IT improvements, ag- gressive acquisition reform, and other administrative savings. At the same time, it contains key investments that will help America win the future by spurring innovation, increasing Amer- ica’s international competitiveness, and supporting scientific re- search as well as supporting our coastal communities. These are core missions of the Department of Commerce. On the innovation front, the Department of Commerce is respon- sible for providing the tools, systems, policies, and technologies that give U.S. businesses a competitive edge in world markets. And that is why we are requesting additional funds for our National Insti- tute of Standards and Technology including an increase of more than $100 million for research into advanced manufacturing tech- nologies, health information technologies, cybersecurity, and inter- operable smart grid technology. These investments in standards setting and in basic research, which are often too risky or too expensive for the private sector alone, have historically spurred waves of private sector innovation and job creation. To further support innovation, our 2012 budget request calls for the U.S. Patent and Trademark Office to gain full access to its fees so that we can expand the already substantial reforms undertaken by Under Secretary David Kappos, working with line staff, labor, and career managers. These reforms will help get cutting-edge in- ventions and technologies into the marketplace much more quickly which will then create jobs. The Commerce Department, through our International Trade Ad- ministration, is playing a lead role in the President’s National Ex- port Initiative, which seeks to double U.S. exports by 2015. Amer- ican companies, especially small- and medium-size businesses, rely heavily on the federal governmental support available under the National Export Initiative. I hear about it everywhere I go. These companies often face significant hurdles in getting access to working capital to produce the goods they want to sell abroad or simply finding reliable foreign customers and vendors for their American-made goods and services. Our International Trade Administration helps many companies clear these hurdles. And last year, we helped more than 5,500 U.S. companies export for the first time or increase their exports. We co- ordinated an unprecedented 35 trade missions to 31 different coun- tries. These efforts are paying off with U.S. exports up 17 percent last year and indeed exports to China were up 34 percent last year. Our fiscal year 2012 budget envisions more funds for activities such as business-to-business match-making services and identifying and re- solving trade barrier issues. G N Finally, I want to touch on the critical work done by our National RI EA Oceanic and Atmospheric Administration or NOAA, an agency that H with D O R P B1 Y O S B K2 S D mcdonald on VerDate Mar 15 2010 20:30 Jul 28, 2011 Jkt 067061 PO 00000 Frm 00003 Fmt 6633 Sfmt 6633 E:\HR\OC\A061P2.XXX A061P2 e 4 is a key source of scientific information which is also increasingly critical to America’s economy. Last year, NOAA played a pivotal role in responding to the BP Deepwater Horizon oil spill by providing targeted weather fore- casts, oil spill trajectory maps, and by ensuring the safety of Gulf seafood. This past week, NOAA issued its first tsunami warning just nine minutes after the tragic earthquake struck Japan. NOAA was able to so quickly sound the alarm because of strong congressional sup- port. In 2004, before the tsunami that struck Indonesia, NOAA had only six buoys in the Pacific to detect seismic and wave activity. Today thanks to congressional support, it has 39 buoys. So the work that NOAA does to predict and respond to weather and natural disasters saves communities, saves them money and, most importantly, saves lives. What I discussed is, of course, just a fraction of the work of the Commerce Department and I direct you to our written testimony for greater detail. In the meantime, we are happy to answer any questions that you might have. 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