Has gone around our export controls we do investigate. As it relates to i. T. , ill come sit with you, if you have ideas how we can tighten it up, i want to hear them. Aoeuf been able to meet with kathy. I would love to meet with you. Because during the time i Left Congress for two years, my job was to try to figure out how to compete with belton road. We dont do it well because we dont coordinate the way china does in competing against us. I would like to see us coordinate you. Thank you , mr. Chairman. I yield back. Thank you. Thank you. Now the gentlewoman from North Carolina, ms. Ross. Ms. Ross thank you, chairman babin, and Ranking Member lofgren, for holding this very important hearing today. Thank you, madam secretary, for being with us. North carolinas Semiconductor Industry boasts over 100 semiconductor and other Electronic Component manufacturing establishments. Over 7600 people employed in the sector. And 1. 2 billion in exported product. The passage of the chips and science act was critical in reenergying the u. S. Energy production and maintaining americas technological global competitiveness. The National Institute of standards and technology, nist, extra mural manufacturing programs are critical to supporting u. S. Domestic manufacturing. And congress authorized significant plusups for both the Manufacturing Extension Partnership and the manufacturing u. S. A. Program in the chips and science act. With major support from the bidenharris administration. As you know congress failed to appropriate funding to these programs at the levels set in chips and science. Madam secretary, could you talk about the opportunities that the United States is losing out on by not supporting the Manufacturing Extension Partnership and manufacturing u. S. A. And how would a decrease in funding to these programs affect domestic manufacturing . Secretary raimondo thank you for the question. I think its very significant. We talk a lot about securing our National Security. Competing with china. The exchange i had with congressman issa relates to what we can do on defense. My strongly held view is that what we do on offense matters so much more. There is only so much we can do. As you just said chinese is coordinated, they are investing. We need to be coordinated and invest. The reality is that over the past 30 years this country has taken its eye off the ball of manufacturing and when you dont manufacture, you lose out on innovation and become dependent on other countries. Every investment we make, its a great program, you all have them in your states. They are very well run. They help Small Companies to do phfrgs. They are going the ones well find the next Semiconductor Manufacturing innovation. The next interesting battery technology. I would say we are working hard on the manufacturing u. S. A. We are goingtonouns the topic announce the topic this fall there. Will be a competition of merit based. But shortchanging m. E. P. , manufacturing u. S. A. , shortchanges Americas National security and our ability to invest in our own manufacturing capacity. Ms. Ross final question. Back to nist. I know that the department of commerce primarily through nist is looking to increase its investments in quantum information science. Where do you believe the department of commerce should focus its efforts for the next five years through the National Quantum initiative . Im going to have to get back to you. A quantum expert i am not. I will have a doctor and her team follow up. Ms. Ross just to tell you why i think thats so important. Some of this we are doing catchup or we ceded our soft money my conductor our semiconductor to other countries. On quantum we can be the leaders. We already are maybe representative will ask about this. If you have never been to the duke Quantum Science Center to see what is going on for the future its amazing. Secretary raimondo we lead the world in quantum and a. I. I will follow up with you. Thank you very much. Now recognize the gentleman from florida, mr. Franklin. Mr. Franklin thank you, mr. Chairman. Good morning, madam secretary, appreciate you spending time. Very important topic and i would love to talk more about chips. Unfortunately since do i have you present i would like to follow up on something that our office has been trying to get some answers on for a while. As much as we all are tired of talking about the topic, it concerns covid. I hail from central florida. The Hurricane Hunters are in my hometown of lakeland. And as a former naval aviator i made it a career practice to avoid flying into storms but was invited to fly with the Hurricane Hunters and was looking forward to doing that. Back in july when i was going to do the paperwork to do that, i was surprised to find i would have to supply my status of covid vaccine, status, and be willing to submit to a test or show proof i didnt have it tefplt that came as a surprise to me considering that the administration had declared an end to the pandemic. I should have done this before, mr. Chairman, i request unanimous consent to enter into the record a letter i sent to the secretary back in july as well as the department of commerces covid19 Workplace Safety plant that was dated july, 2023. Mr. Babin without objection. Mr. Franklin our staff started doing research. Why would we require this . As it turns out i read in your departments own plan that the department does not require onsite contractor employees and visitors to provide information about their vaccine status at this time. Additionally, onsite contractor employees and visitors are not required to show prove of a negative covid19 test when entering in or a d. O. C. Facility. Regardless of the vaccine status. There is a disconnect there that im puzzled about because where between your desk and the deck flight level, someones decided to create their own policy. In no way do i fault the folks at the tip of the spear trying to get this done. 41 of my colleagues and i sent you a letter back in july asking for information about this. We still, aim sure its languishing in someones in box. Im curious why would noaa require this at this time. Particularly and organization thats nothing but scientists who presumably are following the science every day. Secretary raimondo thank you for the question. Let me say a you few things. Im sorry not replying. Im trying to get better and quicker at replying and will get you one this week. Secondly, i dont know. I will look into t i do know they are very close kwaurters these are tiny. And it could be that. Ill get you a proper answer. Thirdly, do i want to take 10 seconds to say thank you to my team that operates these Hurricane Hunters. Its been an unbelievably busy season. We only have two Hurricane Hunters that can fly into the thick of the storm. Are you braver than i. They have asked me mr. Franklin i do fly into hurricanes. Secretary raimondo im going to take this occasion to ask congress for additional funding. There are two planes. They are old. We operate a fleet of nine Hurricane Hunters. They are old. I had to take one down during the hurricane because of maintenance. Get you proper answers to your questions. I do want to say that team is working around the clock and we need congress support to maintain the fleet. Mr. Franklin i would support them and support more resources for them. I do understand it was down wasnt able to fly into the storm. Im also concerned about the implications for noaa staff. Our Staff Members of noaa required to show vaccine status as now . I would like to have those answers secretary raimondo ill get you the answers. We have a policy thats science based. I will follow up. Mr. Franklin i yield back. Thank you. Id like to recognize the gentleman from illinois. Mr. Sorensen i thank the chairman and Ranking Member for convening the hearing and your willingness to appear today. And just to continue on the subject. In my previous life, i was a meteorologist and so i really appreciate your support for those who put themselves in harms way. Flying into the hurricane, so that we have the data to better forecast where these killer storms are going to go. The chips and science act included 50 billion for chips for america fund. 39 billion for implementation, for manufacturing incentive programs. At 11 billion for r d and Work Force Development. 39 billion, thats Huge Investment in chips manufacturing. However, the cost of manufacturing is very high. More than what we covered by this investment. We need industry to capitalize on the investments made in chips. In the last year, Chips Program office has staffed up and released two notice of funding opportunity announcements. One of those was for the 39 billion for the semiconductors Financial Assistance program, which has received hundreds of statements of inquiry. In your perspective, have the investments made through chips in science act incentivized and catalyzed the investment of private capital on the scale we need . Sec. Raimondo its a great question. Yes. So let me say, although 39 billion is an enormous amount of taxpayer money and its an unprecedented program, it really is a drop in the bucket, you know, relative to the mission we have to meet. Since the president signed the chips and science act, theres been more than 300 billion of private investment announced into the Semiconductor Industry. So thats why i answer yes to your question. Like, if we continue to go on a path that for every 1 we invest theres 10 or more of private capital, then, you know, i feel good about that. But it is necessary. My job is to cut the best deal for the taxpayer, to draw in as much private capital as possible. Mr. Sorensen how does our investment compare to chinas . Sec. Raimondo much lower. I dont have the numbers in front of me but i think china has like 145 billion fund just for semiconductors. And theyve announced massive investments, state subsidies in legacy chips. So much lower. But our private sector is the envy of the world. Were not a, you know, staterun economy. Nor do we want to be one. So we will compete and win. Were not going to go toe to toe with them for public money. Were going to outinnovate them and draw in private sector capital which is why the question youre asking is so hard. Its the right question and we have to make sure it happens. Mr. Sorensen how do we make sure we meet the work force requirements . I know that was brought up before. And how can congress be part of the solution . Sec. Raimondo you know, i think Congress Needs to continue to fund work force. Work force, apprenticeships, job training, these arent social programs. These are essential Business Investments for america to compete. When i think about, if you say to me, secretary, what is success in implementing the chips act . It isnt just incentivizing a dozen new fabs. Its getting colleges and universities to put out three times as many engineers. Its getting every Community College in america to have a Semiconductor Technician certification program. Its Getting High School students, you know, to be taught Vocational Training in things that relate to the chip industry. So i take continue to fund it and dont look at it as a soft investment. Its actually every bit as important to invest in our people as it is in our tanks and missiles and, you know, hardware. Mr. Sorensen great. Appreciate that perspective. I yield back. Mr. Babin thank you, sir. Now id like to recognize mr. Baird, the gentleman from indiana. Mr. Baird thank you, mr. Chairman, and thank you, Ranking Member, for holding this session and thank you for being here, madam secretary. We appreciate it. My question is that among the requirements for those seeking chips funding, they must comply with the nepa or the National Environmental policy act. And other environmental laws and other executive orders. So tying nepa compliance to chips funding means that any company applying through any of the funding opportunities, including the upcoming one focused on r d, will need to navigate this process. And for some firms, carrying out the environmental reviews is familiar. It is resource intensity and the process is feeble, given to the bandwidth and capital they have at their disposal. However, the smaller businesses spht Semiconductor Business and material sector, theres a real risk that the requirement to comply with nepa may impact the disbursement of funding or slow down the pace of construction. Heres my question. Hows the Chips ProgramOffice Working with its industry partners, particularly Small Business applicants, to assuage this concern . And how can the Chips Program office work with state and local authorities to reduce the potential for duplicative compliance activities that might further delay the construction of new fabs of other Manufacturing Centers . Sec. Raimondo thank you for your very important question. Youre right. Nepa takes a long time. And so i have built a little team in the chips office to do just nepa. Which is to say, to provide help and assistance, technical assistance, to applicants so they can have a nepa plan which makes sense. I will say there is currently a bipartisan amendment to the Defense Authorization act which would help a lot. So were going to do everything we can with our own team to help streamline nepa and move it as quickly as is prudent. But if congress could pass the amendment, i think the cruzkelly amendment in the authorization act, it would help us a lot to move faster. The other thing i wanted to say is, in the the way were implementing chips is were trying to incentivize states, to your point, trying to incentivize states to help us with the permitting and so, for example, states we encourage states, governors offices, to put in place a single point of contact on per milting for chips for mitting for chips for permitting for chips. A chips permitting team. Because were trying to, like you just said, streamline between the feds and state requirements and were giving a plus one to states that actually do that. Theres no easy solution on this. I worry about it myself. And like i said, i have a very good team of nepa experts trying to, you know, work the system properly so that we get it done as quickly as we can. Mr. Baird thank you. Thats good to hear. I have to give a shoutout to my alma mater, purdue university. Theyre working doing a lot of work in this chips area. Theyve gone from a small little area to an up to an 18inch to make chips. Theyre training these young people to and students. I just want to give them a shoutout for the good work in the chips area. Sec. Raimondo so im filing because one of the best visits ive taken on my in my tenure twos purdue. Ive loved all my visits but Mitch Daniels is a friend of mine, former governor. And what hes done did there was amazing. But i spent the day at purdue and i even went to a chips jobs fair at purdue and i got to meet some of the professors there, what theyre doing in chips. Its like right on target. If every community did that in this country, thered be no stopping us. Mr. Baird Mitch Daniels is my friend too. Anyway, purdue, we really appreciate you taking the time to be there. Sec. Raimondo yeah. Ive already been once, it was a great trip. Happy to go back. Mr. Baird thank you. Mr. Babin ok, thank you. Id like to recognize the gentlewoman from oregon. Thank you. Before we get started on my questions that relate back to my district, youve mentioned a lot of announcements coming this fall. Ms. Mcsally i know a ms. Salinas tpwhrfrpblg how would a Government Shutdown actually effect all the rollouts and timelines that youre facing right now . Sec. Raimondo it would be crushing. If its a shutdown, it will come to a tpwraoeupblding halt. Theres no question in my mind a shutdown will hurt Americas National security. At least as it relates to my work. Export control enforcement and work, investment of the chips money, investment of the tech money, it all stops. And every dollar and every day that we arent working, you know, puts us at greater risk. Ms. Salinas thank you. As oregon is not only home to intel and Companies LikeLand Research which is in my district, they manufacture chips as well, we host a significant manufacturing hub that contributes to the Semiconductor Supply Chain. And these are really goodpaying jobs. I hear from these smaller companies, though, machinists, for example, that it was a huge shock for their businesses when chip fabrication started moving overseas. And in some cases these businesses took many years to recover. And they may hesitate to fully jump back in because of that experience. So as we look to jumpstart this essential industry, how should we be thinking longterm about the supports to ensure that this isnt just a oneoff investment, but that we are really bringing this industry and these jobs back permanently for the long haul . Sec. Raimondo yeah. I think a few things. We