owners of broadcast stations which have led to some instances where one company would be in violation of the fcc's limit of owning one station in every market. so to get around those limits, they often set up what are nope as sidecars -- known as sidecars. they find an executive or entrepreneur with whom they have some connection, they sign one of these agreements, and according to the fcc, fcc chairman tom wheeler, basically, that sidecar arrangement serves as a way for one company to control both stations. they're often sharing resources, and the fcc believes this is a violation of their ownership rules. >> host: so has there been a lot of consolidation in the local television station market in recent years? >> guest: exactly. a few big companies have been buying up tv stations left and right for a variety of reasons. the tv ad game has improved, adicture has improved significantly due to political spending. we've also seen the value of

spectrum and local broadcast stations has risen perhaps ahead of the incentive auction next year. so for a variety of reasons, we've seen a number of companies consolidate their positions in the broadcast tv market. they've fought stations across the country -- bought stations across the country. we've seen certain companies really being aggressive in terms of snapping up smaller broadcasts. >> host: so with a company like sinclair, how many television stations does it own across the country? >> guest: i believe -- i don't know the number off the top of my head, i believe they own something in excess of a hundred stations. they have a number of these joint sales agreements in place. they're one of the companies that will likely be with impacked by this. -- impacted by this. in some cases broadcasters can get waivers if they can prove these joint sales agreements are necessary to keep the smaller station afloat or so they can provide local or news programming. however, in most cases it appears they're going to be forced to unwind these agreements which means these

smaller stations that were relying on the bigger stations to sell ads for them are either going to have to hire sales people themselves or figure out another way to go. in many case, we may see these stations sold. >> host: could a sinclair own both like an nbc and an abc affiliate in one city? is. >> guest: that's gwen the fcc's rules -- against the fcc's rules. basically, you can only own one of the big four broadcast stations in the biggest markets. in the largest markets there are exceptions where you can own own one big station and one small station, but in effect, you're only allowed to own out of one of the abc, fox, cbs or nbc stations in every market. what happens is sinclair when they buy, you know, they recently made a deal to buy a number of stations, so when they buy a package of stations, sometimes they've already got a station in one of those markets. in fact, that's an issue in thal britton transaction. and before they used to set up

these sidecar deals in order to get around that. they'll find a entrepreneur who would be the other than of the station but the financing, the operations, everything would really be handled by the larger company like sinclair. because these ad sales agreements have been banned, they're going to have to restructure these agreements in many cases, and in some cases they're probably going to see the stations sold. >> host: the national association of broadcasters, mr. nagesh, put out a statement saying that the public interest will not with served by this arbitrary and capricious decision. what's going to happen next? i mean, is there going to be, can there be with an appeal? does this take effect right away? >> guest: well, most people expect some sort of lawsuit, some sort of appeal by the broadcasters. the language of their statement, as you said, indicates that's legal terminology, and they're going to argue that the fcc is making an arbitrary distinction here, that in the past the fcc has green lighted these

arrangements which is true. however, this is a new chairman, tom wheeler, who actually has a background in the pay tv industry as the head of the cable industry trade association, so he, it's not vising to many people that he's taken this action. the fcc also took another action at their most recent meeting on monday where they also banned stations from teaming up on retransmission consent negotiations are where they negotiate with cable or satellite providers for money. and, again, this is an issue where the cable providers have been complaining about it, and chairman wheeler has responded to that complaint. it's a tough time to be a broadcaster from a regulatory standpoint. >> host: and, gautham nagesh, what's the time frame on this for this, for the unwinding of these sidecar agreements? >> guest: sure. well, they have two years, however, they can seek these waivers, and especially if the waiver can show this is a station that would not be able to serve its public, especially local programming or news

programming. then there is a chance for smaller stations that they could get waivers approved. if the station in the joint sales agreement is owned by a minority or has, can show that it has boosted diversity in the media, that's also another instance when they might be able to get a waiver. that's relevant for an entrepreneur known as armstrong williams who owns two stations which have joint sales agreements with sinclair. however, for other stations they're going to have to probably unwind these agreements if they can't secure waiver. the language of the commissioners indicates that most applications will be denied. today will do so within 90 days. the fcc has committed to acting on these requests within 90 days. so we're going to have a pretty good idea of what's going to happen in the near term, in the next few months pending whatever legal action the broadcasters decide to take to challenge this. >> host: what's the significance that this was a partisan vote? the three democrats voted in favor of it, the two republicans against it? >> guest: i think that's reflective of sort of both

philosophy and the effectiveness of some of the arguments that have been made by the broadcasters. it's not necessarily a partisan issue per se, but it has become one because the broadcasters have been aggressively lobbying against these changes. this is a blow for the broadcast industry, particularly for the largest companies which have been accumulating these stations. now they're going to have to divest some portion of them. it's going to be expensive. the republican commissioners, michael o'reilly and ajit pai, have been far more sympathetic to those arguments. commissioner mignon clyburn, a democrats, was also sympathetic to some of those concerns especially as it was going to affect system of the minority-owned stations, but that's why the process explicitly has language that would encourage media ownership diversity waivers to be approved in those instances. so the democrats backed wheeler. that's not surprising given his position. but there was definitely a lot

of blowback from the broadcasters. >> host: well, my understanding from reading about this is that there's only one african-american station owner this the country besides -- in the country besides one college in mississippi. >> guest: i believe there are two. there's armstrong williams, as i mentioned, and there's one other station owner, i believe in chicago, and that person had previously marked multiple racial categories, so it wasn't at first clear that they were african-american. i believe they are. at any rate, that is correct. that's down from 19 according to free press, the group that opposes media consolidation. and that's a sign to many that diversity among ownership is a real concern right now, particularly given that we are in the second term of the first african-american president, and we're probably faced with the lowest point in terms of media diversity ownership in the broadcast business that we've seen this the last two decades.

>> host: gautham nagesh covers technology policy for "the wall street journal," now joining us on "the communicators" is that television station owner that we've been talking about, armstrong williams. mr. williams, how does this fcc affect you? >> guest: well, you know, obviously i am encouraged by commissioner clyburn's concerns about diversity. if anyone knows my history, i've always been someone to put myself out as a minority and someone who celebrates diversity, you know? i believe that either you can afford, either you have the relationships and whether you can sustain it, i think it's a wonderful thing, though, that people from all walks of life can own these stations, but it's a very expensive business. i instructed my lawyers the this week to file the waiver already, that will be done this week.

i believe them to be sincere. and if our waiver is accepted, we will certainly be exempted from this process. but i think it's much more than about me. as someone who's perceived as a minority owner, as someone who already operates two stations in myrtle beach, south carolina, and flint, michigan, it's overwhelming, peter. because when we were trying to secure financing independently to buy these stations, jp more began flat out -- jpmorgan flat out told us there's no way they will loan us the money unless we get one of the big guys to guarantee our loan. fortunately for me, the owner of sinclair broadcast group i've known for 15 years, and we've talked about my owning broadcast stations for the last ten years. i was not really interested because of what it would require. i mean, it's one thing to buy, let's say a myrtle l beach license for $1.8 million, flint,

michigan, license for $1.4 million. that's all well and good, but to actually operate that station for what it costs for negotiationing and syndication is just something that you cannot even imagine. >> host: could you have done it independently? besides the money issue, when it comes to or not toking these stations and making them profitable, could that, can it be done? >> guest: stand-alones cannot exist. that's why the robert brothers in st. louis, missouri, had to go into bankruptcy, that's why granite, out of new york, another -- could not make it. and it's not just minorities, people across the board. whites, women, people across the board cannot do it. this is a game for the people like the sinclairs, the gannettes, they're the big boys. and the if you're not one of those, it's just very difficult as a stand-alone to compete for advertising dollars. advertisers like to the buy conglomerates. we're fortunately -- fortunate

that we don't have to negotiate. our shared services agreement, sinclair's able to go in and negotiate these for us as well as our retransmission fees. what people don't understand, they want us as a stand-alone because these cable operators would just kick us off their systems. we would just go away. and so it is important that we have someone with a proven track record in broadcast, this programming to be there for us to fight for us. because, listen, if i were, if the banks were to loan me the money, let's just say we were to unwind my stationings that exist now -- stations that exist now. unwind them. in four months the bank would come to me, and my loan would no longer exist. i would go belly up in four months. and not just me, i speak for all small-time broadcasters that are in the same predicament i'm in. >> host: armstrong williams, what exactly is your shared services agreement, your joint

sales agreement with sinclair broadcasting, the sidecar as our previous guest spoke of? >> guest: well, listen, every sidecar and joint service agreement and shared service agreement is not the same. it's very important that those listening today understand this. normally, you know, for me i have total control over the programming for my station. sinclair broadcast says to me we want to put this on, and if i don't like it, i can veto it, and there's nothing else can be said. i have total control of the programming. any of the revenues that come in in the shared services agreement, 85% come to me, 15% goes to sinclair. that 85% pays for the entire operation of that station. let me give you an example, let me give you real numbers. in flint, michigan, it costs me $6.5 million a year to run that station. that's almost $19-$20,000 a day, okay? and also remember the this, we

had to get -- i'm in debt. i had to get jpmorgan gave us the loan -- >> host: the 50 million? >> guest: yes. my payment to jpmorgan, we just had a payment to go to them is probably about, what, i'm going to say roughly $138,000 a month. so while people say i got the loan, but that's debt. you've got the improve the bottom line, the programming, the operation. you've got to -- we're -- i'm all over country. for the last several months now, what i've -- and i believe in catering to the local market. it's very important. i yee with the fcc -- agree with the fcc in that. and in the myrtle beach market we have been doing these town hall meetings. we're not paying for them, it's something we want to do for the community. on january 20th we did a town hall meeting on affordable care. it was unbelievable. just within the last week we did a town hall meeting on domestic violence where people actually called in who were in real-life

threatening situations where we had the chief of police and the attorney general from the state of south carolina, mike wilson, and sandra rose. i actually was there to help people out of those frightening situations because south carolina leads the country in domestic violence. we take these situations to the community where we empower them. we're this flint, michigan, where we do local shows because their budget so cut to the edge that they can't even afford to do community programming. we take our staff, we go in. we tape shows with local police, community leaders, city council members, we deal with businesses, we deal with education. we take this so the community shows they really care about. so for us in our joint services agreement and our shared services agreement we're really act aive. we're involved. and our myrtle beach station which did not have news because news is where you really make your money in the local market. that news operation costs us almost $800,000, peter. it is not cheap. this is not .faint of -- not for

the faint of heart. but to get them back to channel 21 in myrtle beach, millie huggins who's my general manager, we put that back in place. i alone could not afford these figures. then the ice storm about a month ago if south carolina, and the ice just destroyed our generator. we were off the air for almost 16 hours. to get a generator was $400,000. these are the kind of expenses that you cannot calculate. no one, i don't care what kind of wealth i may have been blessed with, there is no way with my owning two or three television stations could i survive this without these joint services and shared services agreements. this is why when we go to -- when my lawyers file with the fcc for the waiver, we're very confident because we're actually running our stations, we're actually involved. i'm involved with my general manager on the phone almost daily, rebecca if flint, michigan, becky. we're on the phone daily.

there are all kinds of issue, personnel issues in our flint market. we asked them when we went down to do a stand-up to introduce myself. we asked them, because our numbers are dismal there. why can't we compete if because we don't have boots on the ground. we hired producers, camera operators, we had to put staff together absolutely necessary just to give us an opportunity to compete in the market. that cost us almost $350,000 for those positions. you don't have that kind of money when you go into this situation with debt. but fortunately, we have a conglomerate, and to answer the earlier question, sinclair owns about 168 stations, they're the largest single owner of stations in the country, and they're very supportive. they encourage me with the program, and they're not involved. i deal with my staff at both stations, and we're making progress. i wish you could see the morale, how the morale has been built up, giving people hope. and, yes, a lot of these tv

stations, they go in and gut them, they leave nothing. all they want to do is take the money out, and people are afraid. but i can say this for sinclair and for us, we're in the tv business. i'm not in the business to turn this around is and flip it. i'm in this for the long term. south carolina is my hometown, that's what attracted me to this business when david smith met with me and said i think i've got the key to get you in the broadcast business. he said guess what's in the package? and he showed me the myrtle beach station which was 30 miles from where i grew up. and that's what i said i've got to do it. it's a bless, but it's a lot of work. >> host: so 15% of the revenues go to -- >> guest: sinclair. and 85% stays with us. >> host: does david smith, do you consult with him on anything that you're doing doing at this time? [laughter] >> guest: no. totally independent entity. of course if i'm involved in, i want wisdom or advice because we're friends on things that i'm trying to do, i will ask his

advice. but the good news is, and this is a blessing, it's my history, it's my background, you know? earlier in my career i was the coo of renaissance cable network here in washington, d.c. which was a national cable network, and i was there for almost three or four years. i have been involved with sinclair broadcasting as programming for the last 12 or 13 years. sinclair broadcast group is the outfit that airs my syndicated national tv show that has been on the air for a long time. and so i have been involved in programming. we have been involved in developing content. we've been involved in managing. and i think my gift, what i bring to television, is the programming, the localism like the town hall meetings and other things we do that speaks directly to the community. i heard "the wall street journal" say earlier that a lot of these guys are either entrepreneurs or friends, they don't really have experience. that's not my case. i am a broadcaster. it is my history, it's where i

put most of my resource and most of my time in my broadcast career. >> host: armstrong williams, lauren wilson, i believe it is, from free press posted recently about this, about you personally. he says that as a black woman i can't let this rhetoric go unchecked. under these arrangements, sinclair provides howard stern, your company, with all payroll, sales and related services. sinclair also has the right to provide howard sterk, your company, stations with up to 25 hours of programming, 25 hours happens to equal 14.88 better of the 168-hour week, and fcc rules already require ownership attribution in instances where a broadcaster programs more than 15% of another station's content. >> guest: well, that doesn't apply to us, obviously.

she just has her facts mistaken. people do that sometimes. i mean, she works for free press. they talk about even on their web site they talk about how the fact that the reason why minorities and others can't get into the broadcast industry is a lack of capital. i'm very clear on what i just said that without sinclair's financial support, we could not do what we do. as a businessman, i don't apologize for that because i'm in this business for the long term. i don't want to go bankrupt, i don't want to shortchange my employees who are dedicated to making this work in the local markets. and so i consider sinclair as a blessing. and i would say this to you, and if anybody really were very candid, they would say the same publicly. without joint shared services agreement, without shared services agreement, minorities, anybody else getting in the broadcast industry is not existent. this is the only vehicle that is in place that assures that others have any shot at becoming

a broadcaster in this country. there's no other vehicle. and the numbers are dismal. why are they failing? money. capital. they just don't have it. and it bleeds them to death. but fact is they said, you know, i can't take it anymore. i want to do this business, but i can't afford it. with sinclair and agreements that we have, i won't have that problem. >> host: after the decision yesterday free press said, it signals that fcc chairman tom wheeler is willing to break with the past and stop broadcasters from using shell companies the skirt the agency's ownership limits. the fact that lauren wilson said as a black woman i can't let this go unchecked, how much of this is about race? >> guest: i'm going to think about that -- i don't think about that much. but this is, i don't actually think this is about race ideology. i think this is about affordability. i think this is about spectrum space. i think this is about cable

owners don't want to pay us for our con at notent. they want our content for free. but yet they will pay espn $6 or $7 per subscriber. they only pay us 75 cents per subscriber. i just think that's what in this issue boils down to. it has nothing to do with race. you really want to know what the bottom line is, just follow money trail. >> host: your friend and fox news contributor, former washington post editor, hill columnist juan williams opined in the "wall street journal" on this issue. my suspicion is that liberals at the fcc who claim to be interested in promoting diverse broadcast ownership lose interest if the owner is a conservative like armstrong williams. >> guest: you know, juan is my, is definitely my friend, and i appreciate the reaffirmation of what he's saying in terms of the

ownership and how important it is that we have an opportunity when you -- given the history of this country from human slavery to segregation, it's important for other minorities, in particular blacks to see that america's still a place of opportunity, that america's a place where you can still progress, you know? i remember when the reverend al sharpton was involved with the comcast/nbc universal deal, and people talked about how polluted and how bad it was, for me that was progress because some kid, some young black kid in the classroom, some black kid walking through the airport will see al sharpton, and it will give him hope that maybe america is that shining city on the hill, and it has opportunity for them. so i think that is very important that people need, sometimes need to see themselves or what they call their own in order to believe in the american dream. and i see it myself as i become a broadcast owner, just the reaction from young people. they think i'm so cool. because they watch this thing called tv.

they understand this thing called tv. and they think the fact that you can own tv is a big deal. so i celebrate that. but, look, i don't think that all the small station owners in the markets in this country look lick me or -- like me or share my politics. and they are just as impacted as i am. >> host: armstrong williams, did you meet with the fcc commissioners before this vote, and what's the next step for you? >> guest: we met with commissioner clyburn, and -- >> host: that was the only one of the five? >> guest: yes. >> host: why? >> guest: you know, i didn't want really give much thought and weight to really meeting with the commissioners because i've been so running around trying to adjust to this new ownership because my idea was only approved on november 28th last year, and so i've been so absorbed with the issues of the television stations so i really didn't have time to hold my head above water. but as i was looking at what was going on and i was seeing how

different broadcast owners were going in to heat with the commissioners -- meet with the commissioners, i said i should do the same. i made the request to commissioner clyburn. she and i share rootses in south carolina, i've known her for a long time, and i asked for the meeting. she said, yes. she didn't say much. she was very open to, you could tell, and it was by first time ever at the fcc. i'd never been out there before. >> host: what's the application process like to get an fcc license? [laughter] >> guest: you know what? only my lawyers can answer that because they're still reading the language. they've got to read -- and i don't think by the time this show airs that language will be released. they have to go through the language, see what the guidelines are, see what the waiver process is and spend more of my money to make sure that happens. >> host: so if your waiver isn't approved, what happens? [laughter] >> guest: i hadn't thought about that much, peter. you know, again, listen, i am an entrepreneur, and as an entrepreneur and a business

other than, we're constantly reinventing ourselves every day. my, always my goal in life is to reproduce myself. and what do i mean by reproducing myself? i want to reproduce myself this others. the people that i mentor and i center with, i want them to surpass what i've been able to accomplish in my business, on my business resumé. and i find that no matter what the outcome is with the waiver, as an entrepreneur i will find a way to continue owning a television station and much more. >> host: and we've been talking with television station owner armstrong williams, weyi, nbc tv in flint, michigan, and wwnbcy-tv in myrtle beach. >> c-span, created by america's cable companies 35 years ago and

brought to you as a public service by your local cable or satellite provider. >> coming up next, intelligence officials, including nsa deputy director richard leg guilt, speak before a house arm service services committee on the 2015 defense budget request for intelligence abouttives -- activities. after that we're live as state, federal and industry officials discuss their efforts in reducing greenhouse gas emissions as regulated under the clean air act. and later the senate's back at 2:00 eastern for a period of general speeches followed by debate and a roll call vote on legislation to extend unemployment benefits. >> and some other programming today on the c-span networks including an analysis of questions posed by this past

weekend's after began elections. a panel will discuss the transition of power from president hamid karzai to his successor and how u.s./afghanistan relations could be affected if a bilateral security agreement is not reached. the alliance in support of the afghan people cohosts this forum with the partnership for a secure america. it begins live at 2:00 eastern on c-span3. and after that the center for american progress will host a discussion on pay discrimination in the workplace. a panel will look at the role of federal enforcement agencies in eliminating discriminatory pay practices. and how workers can make more informed decisions about their wages. speakers include the chair of the equal employment opportunity commission. live coverage of the event begins today at 3:00 eastern also on c-span3. >> on friday intelligence officials appeared before a hearing of the house armed services subcommittee to talk

about the obama administration's 2015 defense budget request for intelligence activities. the president's proposal includes $45.6 billion in funding for intelligence programs. among the witnesses were defense intelligence agency director lieutenant general michael flynn and nsa deputy director richard leg it. this portion only includes opening statements before the hearing recon convened in a classified setting. representative thornberry chairs the committee on intelligence, emerging threats and capabilities. this is about half an hour. >> hearing will come to order. today is the first of two events the subcommittee is hosting related to the fiscal year 2015 defense intelligence budget.

today we'll hear from the undersecretary of defense for intelligence as well as the heads of dia, nsa and nga. next week we'll hold a second session with the senior intelligence officers of each of the military services as well as special operations command. armed services committee continues to be focused on making sure that our war fighters have the best possible intelligence support. dia, nsa and nga are each combat support agencies, and we have asked them to describe today their efforts to support current military operations as well as to help dod anticipate and prepare for future conflicts. each of these agencies is part of the intelligence community and has responsibilities to both the larger u.s. government and to department of defense. that is a delicate balance, and both missions are critical to our nation. over the past year, we've been presented with numerous additional challenges. whether it's the current crisis in ukraine, ongoing military

operations against terrorist groups or mitigating the most serious compromise of classified information in u.s. history, intelligence and the protection of that intelligence continues to be one of the most important parts of our national defense. let me yield to the distinguished ranking member for any opening comments he'd like to make. >> be thank you, mr. chairman. i want to thank our witnesses for being here today, especially want to thank chairman thornberry for organizing and putting together this very important hearing. i hope that today's discussion will be both productive and constructive as we continue to exercise this subcommittee's new oversight responsibilities for which the armed services committee has responsibilities for. first and unfortunately foremost, of course, i continue to be concerned about the implications and ramifications to the d. from the -- to the department from the leaks of the nsa contractor. i have read information review

task force report. it was an essential assessment and a very sobering one, indeed. however, i'd like to get a better idea of what we know now and what we don't know and what we're going to do about it. after all, as dni clapper testified before the intelligence committee, the vast majority of the information comprised has nothing to do with nsa surveillance and collection, but instead has dire impacts directly on dod. i'm very concerned about the damage assessment and the practical effects of these leaks on our men and women in uniform who are at risk each day, but just as important is the way forward on mitigation. we certainly don't these to scrap -- need to scrap every operations plan, but we do need to look at shifting some department priorities and policies, and i'd appreciate you

speaking to the magnitude of what we'll have to face in the coming years. i'm also interested in the progress of the defense clandestine service and its ability to meet strategic defense priorities. i know that the defense clandestine service is not new to dia, but certainly it is under general flynn's direction and that of secretary vickers has enhanced its capabilities, and i'm looking forward to getting an update on that. there have been some growing pains, but i strongly believe the dod must maintain a clandestine human capability which i have to say is sometimes challenged in the intelligence committee. how is dcs progressing and improving its capabilities, refining its requirements, moving officers into places where they can be most effective and integrating and coordinating with others in the intelligence community? from a budget perspective, money above the budget control act

level via the bipartisan budget act was given back largely to the services. this puts a particular strain on agencies like yours. we're going to have to make, take some risk, but there is a breaking point. as your partners on the hill, we'd like to help you avoid that breaking point and manage your risk wherever possible. we'd also appreciate the benefits of your perspective on particular cuts and other parts of the department that could impair your activities such as the co-coms. and finally and fittingly, given today's hearing on the qdr, given yesterday's hearing on the qdr, i'd like to discuss the overall defense strategy implications to intelligence. when the department looks out over the next decade, is the defense intelligence apparatus correctly postured to meet our operational priorities, and is it correctly aligned to the cover the globe, operate where we need and operate to sustain

and sustain our counterterrorism operations? so with that, mr. chairman, i'd like to, again, thank you for holding this very important hearing. to our witnesses, thank you again for your appearance today can and your service to the nights, and i certainly look -- to the nation, and i certainly look forward to a productive relationship as we work together to insure the best intelligence posture for the nation. i yield back. >> thank the gentleman. undersecretary of defense intelligent, general michael flynn, ms.ly tissue cha long and mr. richard leg get, the deputy director of the national security agency. we will start with unclassified opening statements from each of our witnesses and the then reconvene in a classified setting next door where each witness will then with automobile to make brief classified remarks followed by members' questions. dr. vickers, the floor is yours.

>> chairman thornberry, ranking member langevin, distinguished members of the subcommittee, i appreciate the opportunity to come before you today to discuss the fiscal year 2015 budget request for defense intelligence. i'm especially pleased to be here with mike, tish and rick. betty sapp testified yesterday before the strategic forces committee. while the unclassified nature of our opening remarks keeps us from discussing in detail many aspects of defense as well as, we look -- intelligence, we look forward to meeting in closed session to discuss more fully. intelligence is a major source of u.s. advantage. it informs policy and enables precision operations. it is our front line of defense. the challenges we face, however, increasing and becoming more complex and our resources are declining. it is imperative, therefore, that we make the best use of

available resources given the challenges we confront. as the usdi, i have oversight over the related programs that comprise what we call the battle space awareness portfolio. the department's fy-2015 budget request for base appropriations is $13.3 billion which does not include overseas contingency operations funds. the ba portfolio includes significant additional resources. defense intelligence collectively income ass the defense portion of the national insurance policy program and the ba portfolio. my close relationship with dni clapper enables dod and the intelligence community to work seamlessly to manage, resource and apply our intelligence capabilities in pursuit of our national security objectives while avoiding duplication of effort. we have five defense intelligence operational

priorities; counting terrorism -- particularly countering the threat posed by al-qaeda -- countering the proliferation of weapons of mass destruction and associated delivery systems, countering the actions of repressive governments against their people such as in syria, countering state-on-state aggression and countering cyber threats. to address the intelligence gaps that exist within these operational priority areas, we are focused on enhancing defense intelligence capabilities in five areas; enhancing global coverage, improving our ability to operate in antiaccess aerial denial environments, sustaining counterterrorism and counterproto live ration capabilities, continuing to develop our cyber operations capabilities and strengthening our counterintelligence capabilities and reforming our security clearance processes to minimize insider threats.

all four of us are committed to working with the congress to find the best way to continue to deliver intelligence advantage to our nation and our war fighters. i thank you for the opportunity to address the subcommittee today and turn thousand to my colleagues -- turn now to my colleagues to address what they are doing within their agencies to further our intelligence goals. >> chairman thornberry, ranking member langevin and members of the subcommittee, on behalf of the men and women of the defense intelligence agency, thank you for your invitation to present our budget request. let me begin by saying i fully support the priorities undersecretary vickers outlined in his remarks. as you have recently heard from admirals mcraven and locklear and generals rodriguez and austin during their appearances before the full committee earlier this year, the need for more timely and accurate intelligence continues to exponentially grow. persistent crisis this the middle east and recent developments in crimea, central africa and the asia-pacific region underscore the constant

drum beat for more fighters, commanders and policymakers for specialized understanding and insight into the countless threats and military capabilities around the world. both you and i have a responsibility to our men and women to make smart decisions in these us austere times, to take risks where we must, but also maintain those investments which will insure our security well into the future. dia, excuse me, dia has made significant changes to manage risk, to insure that we will continue to meet the increasing operational needs and strategic challenges that threaten our military advantage. during my testimony this morning, i will highlight four critical priorities in our request. number one, intelligence collection operations. number two, all source analysis. number three, investments in our work force for professional development and career-broadening experiences. >> and number four, how we have reshaped much of our business practices and processes. first, within intelligence collection operations insuring the success of the defense clandestine service is a

priority not only for dia, but for the defense department and the intelligence community as a whole. your oversight and support have helped dcs mature as a human intelligence capability and make measurable progress in support of all defense intelligence equities. on all measures -- trade craft, professionalization and both the quantity and quality of recruitments -- we have experienced a marked increase in performance this past year. in terms of counterintelligence, this is another critical investment for dia. recent events remind us that accepting too much risk in the counterintelligence realm can come at an unacceptable kansas. our budget -- cost. our budget focuses on creating a 40 holistic strategy that addresses traditional counterintelligence, increases network monitoring, improves insider threat identification and fortifies a security-conscious culture within our work force. second, all source analysis is a core mission of dia and rightly comprises one of the largest portions of our budget.

we are implementing new solutions to mitigate global coverage risks, particularly by forging closer ties to the combatant command joint intelligence operation centers through the agency's five intelligence integration centers. our integrated centers fuse our analytic and collections work force to maximize support to operational decision making and strategic policy. while only in their first year of operation, our combined performance in the response to the recent crisis in ukraine, flashpoints in the south south a sea, instability in sub sahara africa and the ongoing civil war in syria highlight the benefit of multifaceted integration and collaboration as well as a strong lash-up with the combatant command. third, we have increased our investments in our work force professional development programs as well as career-broadening experiences. in terms of professional development, we consolidated 21 separate offices into one

academy, realizing an immediate cost savings of $3 million. .. >> the impact of all of these changes has already seen an improvement in analytic production, a decrease in contract instructors, and increasing the number of mandates we get out of our

reserve intelligence component. fourth, we are taking steps to significantly improve our contracting business processes with a start small-scale pass/fail chief strategy that reduces risks, shortens delivery time by 69 months -- six to nine months. we are particularly proud of her work with small businesses which are generating original ideas we need for the future. the federal government average of small business contracting is less than 25% by the fda and over the past year we've nearly doubled our investments in small businesses reaching a new high of 31%. now nearly one out of every $3 that we invest is invested in small businesses. as you review our overall budget request you will find we've made the hard choices and the right investments to assure our fully integrated defense intelligence team of highly skilled professionals is equipped with the right training and

technology, strengthened by partnerships across the whole of government and around the world. we will continue to provide all intelligence whenever and wherever required in support of our workplace but i thank you for support and look forward to your questions. >> good morning, chairman thornberry, ranking member langevin, and distinguished limits of the subcommittee. thank you for the opportunity to discuss the national geospatial intelligence program and the nga budget request for fiscal year 2015. thank you also for your continued support to enhance defense intelligence. please do. before today with dr. victor's and my fellow directors. in my more than 30 years of working in defense intelligence, the cooperation and collaboration between our agencies has never been stronger. geospatial intelligence, is the analysis of information from a number of unique and highly technical sources that describe, assess and visually depict physical features and geographically referenced activities on earth.

we have always been integral to military operations around the world and today it is one of the drivers for intelligence integration. because everything in the world is someplace. at some time. as the lead federal agency, nga provides is critical information for the defense community, military commanders, decision-makers, troops deployed in harm's way, and first responders. our content, analysis and services enable mission planning, combat operations, strategic warnings, precision targeting, counterterrorism operations, counter proliferation, gps navigation and humanitarian assistance and disaster response. as an example, the nga produces and sustained global aeronautical and maritime safety and navigation information for military flight crews and sailors as well as salamanders. this effort includes updating

electronic records on more than 45,000 airfields, charting more than 116 million square miles of ocean, and managing data on over 3 billion couple graphic features worldwide. the bottom line is without this information, our ships would stay in port, our pilots would not fly and our ground forces would not leave garrison. the second example of the contribution of jill in is the spatial view of the battle space that nga provides its combatant commanders and policy makers. by identifying threat of force capability, locations, patterns of activity, relationships and infrastructure around the globe, nga helps the commanders in others hold adversaries at risk. to support these types of missions can nga personnel deployed all over the world embedded alongside our military and intelligence personnel and participate in mission planning,

executions and follow-up. in some comedy intelligence that nga provides everyday is critical to the planning and operations of intelligence agencies and military units fighting to protect all americans. in the broadest terms, the vision that drives the nga's workforce is putting this in hands of our soldiers, sailors, airmen, marines and coast guardsmen. we continuously seek to produce new value for warfighters whether through map, imagery and technical analysis, by specialized interactive product. looking ahead, nga's budget request includes funding for expanding our analytic capability, next generation collection strategy, to anticipate evolving national security threats. shaping and retaining a skilled and diverse workforce, enhancing protections against cyber and insider threat to keep our information and our people safe.

these investments are aligned with a number of long-term strategic initiatives that nga is pursuing to improve our contributions to the warfighter and the intelligence community as a whole. including better intelligence integration, providing better access to our data, especially for the warfighter, and enhancing analytic trade craft to discover key unknowns hidden in the masses of data. in addition to the strategic initiatives which focus on the long-term success of the agency we have kept a close eye on the more immediate risk from russia and ukraine, to iran, north korea and china, to syria, afghanistan and counterterrorism operations as well. finally, i want to mention our progress toward financial auditability. the agency is undergoing our first full scope audit of our 2014 financial statement. the results from this audit will help us identify areas requiring additional remediation as we

move toward our goal of achieving an unqualified opinion on our 2016 financial statement. on behalf of the women and men of the nga, thank you for your support. >> chairman thornberry, ranking member langevin, distinguished most of the subcommittee, thank you for the opportunity to address you today. on behalf of a just and men and women of the national security agency and social security service, thank you for your support for the congress and this committee and in particular give the nsa css. your support makes it possible for us to provide actionable intelligence and information assurance expertise to our diverse customer set, especially the combatant commanders and our military personnel in harm's way. with your continued support in fy '2015, we will continue to do all we can to protect the nation and its allies. our 2015 nsa css budget reflect hard choices to ensure critical

national security requirements are addressed in an era of declining budgets. strategic environment we face will continue to become more complex and present a dramatically new set of challenges. cyber attacks will allow potential adversaries to overcome the u.s. advantages in conventional military power. the nation will continued to depend upon nsa's analysis to sustain our access and understanding foreign communications even as encryption becomes more automatic and more prolific. we must support our war fighters, policymakers and allies today while preparing for the future for the development of next-generation capabilities, all while scrupulously protecting privacy and civil liberties. our fiscal year 2015 budget while accepting risk mandated by the current fiscal climate keeps us on the path to accomplish these goals. we have recruited and retained an extraordinary talented workforce, and fy '15 budget allows us to preserve it. we are leveraging our human

capital by providing a people with the most technologically sophisticated and innovative intelligence capabilities. investments in cybersecurity will expand across the enterprise to meet the demand and speed of action required in today's world. as you know, nsa executes three distinct fund industry the cryptologic program, the information systems security program, and the military intelligence program. let me briefly describe our emphasis in each of these areas. the ccp enables nsa/css to bring the capability of a global cryptologic system to bear in support of our national policymakers and a war fightingg demands. innocent global intelligence capabilities, analytic trade craft, operational infrastructure and reporting mechanisms have been developed over time and have resulted in a successful delivery of mission requirements. i look for to provide some

specific and recent examples of in a classified session that will follow. and as they see us as his information assurance investment plan response to the challenges of providing security solutions that keep pace with the fast moving technology sector and agile adversaries. we must know that cyberspace environment and its risks protecting information and hardening systems and national security cyber domain. this will ensure systems have the required security characteristics commensurate with known and anticipated risks, and the ability to withstand and recover from cyber attacks and intrusions. we are refining our strategies to provide know-how and technology to suppliers and clients, and immeasurably improve the security of critical operations and information. nsa/css's military intelligence program investment plan focuses on delivering responsive reliable and effective signals intelligence to ensure our deployed forces can succeed in

today's operations and are prepared to respond to future threats and technologies. nsa/css, trenton continued previous investments to improve dod intelligence and surveillance and reconnaissance capabilities providing timely and adequate support to our deployed forces achieving interoperability, commonality and modernization of service and u.s. special operations command signals intelligence, i is our capabilities. nsa/css will also continue to support an effective joint tactical system that provides access to targets that use the global conversion communications infrastructure. the mip and investments strengthens -- will focus on the development of the strong cyber workforce and intelligence gathering in cyberspace. these initiatives will focus on providing u.s. cyber command and cyber mission forced support, personal training and threat

operations support and infrastructure. we will also continue investing in the research and development of solutions that produce actionable, signal intelligence were deployed forces. we will be responsive to the need for intelligence support, to combatant commands including support to the development of operations plans in theater campaigns plans as directed by the chairman of the joint chiefs of staff. i'll conclude by saying that the nsa/css budget request reflects the necessary balance between today's fiscal realities and her unwavering commitment to support of the joined warfighter. thank you for continued support and helping nsa/css maintain world-class capabilities and serve as a key contributor to the protection of our nation. >> thank you all. we will immediately reconvene next door and without the opening. this is a journey.

>> stop spying on the american public. spent if you're honest about what you're trying -- [inaudible] >> imagine how much money we could save if you stopped collecting information on ordinary citizens. >> dr. vickers, this is a -- [inaudible] spend i'm telling you to put your sign down. [inaudible] >> that was the number one thing. spent it's our constitutional right. apparently they're not doing a very good job. the nsa is not doing a very good job. spent why don't have the largest arms dealer -- [inaudible]

>> why are you suddenly being very rude? >> i am not being rude. spent this is not your building to its the peoples. this is the peoples building but let's get really clear on that one. >> just had come dba administrator gina mccarthy along with energy industry representatives are among the speakers at a workshop examining the reduction of greenhouse gas emissions as regulated under the clean air act. later the senate returns at 2:00 eastern for a period of general speeches followed by more debate and the roll call vote on a bill calling for a five month extension of unemployment benefits. >> in our joint services agreement, we are really active, we are involved. in our myrtle beach station which did not have news, news is

where you really make your money in the local market. that his depression causes almost $800,000. it is not she. this is not for the faint of heart. because this is what people want come with the need to get them back to our station, channel 20 myrtle beach, we put that back in place, without their financial support it alone cannot afford their figures. there was an ice storm and ice destroyed our generator. we were off the air for almost 16 hours. to get the generator was $400,000. these are the kind of expenses that you cannot calculate. i don't care what kind of wealth i may been blessed with, there is no way could i survive this without these shared services agreement. >> the sec ruled that owners cannot control more than one station in the same local market

using joint sales agreements and shared services agreement. find out more tonight on "the communicators" at 8 p.m. eastern on c-span2. >> live now on this monday morning. the bipartisan policy center is about to host a discussion on greenhouse gases. if minister gina mccarthy is among the featured panelists early. also in the first segment a panel of successes that stage having and limiting greenhouse gas emission. is after 11:15 a.m. go be a series of panels focus on topics such as regulating greenhouse gas emissions that exist in power plants and how industry is addressing greenhouse gases. live coverage here on c-span2. is to get underway in just a couple of moments. while we wait, a look at this week's -- this week in congress.

>> [inaudible conversations]

[inaudible conversations] [inaudible conversations]

[inaudible conversations] [inaudible conversations] >> once again we are live awaiting remarks from a administor gina mccarthy. a conference on greenhouse gas emissions. a few minutes from getting underway. while we wait and look at the

week ahead in congress. >> the senior congressional correspondent for the "washington examiner" joining us for look at the legislative week ahead. congress is back for one more week o of work before they start their two-week easter passover recess. house republicans are scheduled to bring budget committee chair paul ryan 2015 budget resolution to the floor. can you tell us what's in the proposal and when we can expect that debate to get started? >> i think you'll see the debate throughout the week to go vote on before they leave the reason is probably towards the end of the week and i think what is most notable about the budget is the fact that it increases defense spending beyond what the president has asked for, but given the republicans have been a little bit divided over defense spending in recent years and the fact that they've been very concerned about the budget, even what it relates to defense spending i thought this was very interesting and so i suspect you will see sort of the usual split debate over the budget with

democrats playing -- saying all sorts of horrible things. at the end of the day is likely to pass and it will go nowhere from there but it gives republicans an agenda to run on and draw any contest on fiscal issues with democrats and something it's been very important to them. >> in your recent article titled house gop tries to break free from the structures label with paul ryan budget, how does the house with the leadership plan to do that? what type of lobbying efforts among republican members are underway to get the budget passed? >> i don't think it's a tough sell to be honest with you. i think that republicans are eager to pass something, anything that can show what they are for, show they're not just against the president's agenda. if you listen to paul ryan and how he has discussed his budget, it was interesting to note the first thing he said about it on a conference call in the past few days was that people have asked him why he bothered to

this decision in an election year when struggling to pass a democratic senate anyway. he made a point of saying a number of times unprompted that the republican party needs to be a proposition party, not an opposition party but if you can get beyond the slogan, what he is saying is republicans have been very sensitive to the fact that they are portrayed often in the press and by the president as the party of no, not having any new concerted ideas to help the middle-class, to help americans. they don't feel that way. they don't believe that's the case, and a lot of and a lot of republicans only want to legislate. i think that's one of the reasons are seeing them come up with a budget when there's no reason for them to do so politically. that's what i was looking at in the article and i think that's why not only because chairmen right is close with many members and no doubt consulted with them before you put this together. itself using okay now what do you think? the way he usually works with this is that he consult with

members as he puts it together so there are no surprises. but that's why they're going through this exercise even when not going to hear much about this budget from atlanticist endpoint, once it finishes next week in the house's pick your paper has an article on how house democrats will make paul ryan budget a defining issue in the upcoming election season. can republicans look for to any support from house democrats to get the budget approved? >> no, no, no. primarily because democrats have a different view of budgeting at the federal level than the republicans. there's just not much they agree on. the maria ryan budget agreement that we're all living under right now -- murray-ryan that the two sides were able to come together to pass this thing but when you're looking at a budget document like this. there's just no reason for democrats to support a. you might see a few around edges because are some house democrats in tough races that may want to embrace this but there's just so

much in the house republican budget that democrats don't like and there's no reason for them politically to support something they don't like in this regard that i just, i don't think you'll see that. >> let's turn to the senate. senators are scheduled to vote monday evening on a five month extension of unemployment benefits. how did centers by reach agreement of that vote thursday on moving ahead to final passage? what's likely to tap into the measure when it heads to the house? >> you have senate republicans that have been negotiating on and on employment extension because in certain states it's something that members of the word still do much needed and their constituents very much supported. you have senator heller from nevada, a republican, negotiate with senator jack reed, rhode re island, democrat commented of the republican republicans get . even though most senate republicans didn't support this particular extension for several reasons, you had enough republicans that you're going to be able to get 60 votes.

when they finally got around to figuring out how to pay for it, or what other cuts to make in the government to support the cause of the unemployment insurance extension, and you got a few other things you able to get the five republicans you needed to get this thing across the finish line. the house is another matter because what house republicans would want i think to pass this extension would be the attachment of some other jobs related bills, reforms to jobs program, the democrats have been supportive of. so you have to get senate democrats to agree to do something in that regard. this thing could get from would only get to the house in that way and they would only get them back to the senate that way. the are some house republicans better from some of the same states that have been affected by unemployment that affect the republicans of the murders who supported this and they're asking that leadership to please

consider a way to get this done. whether or not that happens i do know that happens i don't know but republicans are now simply don't think this unemployment extension is good for job creation. they think in many ways it hurts the people it is actually designed to help and so there's a lot of resistance. >> one more item to the senate could squeeze in work on legislation did was pay equity along with raising the minimum wage. what's the status of those bills? >> there's still some issues with senate democrats as relates to the minimum wage, and i don't believe yet they've gotten on the same page. until they do, that's really the first step is you need to see kids are democrat senate. i don't think you will see much chance of it getting through a republican house. again, they think it actually is going to damage job creation, cause more unemployment if you raise the minimum wage and is a matter of philosophy and public policy, republicans said they don't like it. so you know, they may have some leaks in the democratic senate

but i don't even know that it gets through there. and then it's a matter of republican house and i don't see it. >> david drucker the senior correspondent, congressional correspondent thanks for joining us today. >> thanks a lot. >> there something about your commitment to deny the adage goes, april showers bring proposed rulemaking. and we'll find out what proposed rulemaking actually brings. hopefully over the course of the next hour. as i said this is the third in our trilogy. we have some nerds in office who have been referring to this as the fellowship. we are delighted to be again with our partners at naruc, president honorable, of course chuck gray and his staff is done tremendous work and all the commissioners did before get into our panel, let about it ahead of us. first workshop, let me say, back up and go for the first workshop is in september. we can lay out the big picture,

aspirations and challenges and opportunities of this tricky little section of the clean air act. and in december we go got it together and talked about policy design and impact, focus a bit on economic modeling. today we'll talk about the incredible efforts that are already underway, state, regional level, efforts to try to reduce greenhouse emissions and effect that they can have to embrace, and hopefully not to trip any of those efforts up. so before we start our fireside chat, and i will take, i asked my folks to rule out those flatscreen tvs -- roll out. they listen to me all the time. we will have a real comfortable, engaging and hopefully collaborative discussion. our first panel will be with some of our commissioners and share perspectiperspecti ves on state efforts and also how those efforts are proceeding to recognize and there's tremendous change right now in the electric

power sector. our second and will bring together some of the utility leaders and technology companies who will discuss efforts under way to diversify resource mix and implications of what 11 the of some very significant investment choices. third panel will focus on energy efficiency, the unsung hero of environmentalism. look at critical questions that states are engaging in whether and how to integrate and use efficiency in this framework. finally, something near and dear to my heart, talk about multistate efforts underway and regional approaches as a think with all the overtime, electronic means faster than even the highest the most talented public servant. thinking about regional approaches especially in the power sector. today's event is being light streamed. i never got to know what that means but always feel very cool thing at the we would like to give a shout out to all of you folks were in your basement at home watching us.

and so find let's get this underway. i'm really honored to introduce to good friends, epa administrator gina mccarthy and naruc president, the honorable colette honorable. both jean and collect have threatened if i don't call them gene or colette they will kick me. they had risen to national prominence as distinct careers at the state level. i first got to know gene in the early 1990s in boston. trade secret. gene has roots in boston. you may get a better sense of that shortly. after leaving connecticut department of our mental protection, administrator mccarthy was joined -- in 2000 was appointed and confirmed to the role of administrator in 2013. colette honorable was elected chairman after serving in the commission since 2007 pitches also elected to the board as

president and ceo of the national association of regulatory utility commissioners in 2013. so we're now going to enter into a little interaction about the rulemaking underway to start off and ask both of our speakers to decide a few words and then we will kick it off. gina, do you want to take the lead and share a little with the? >> first, it's great to be here. great to be in front of everybody this morning. colette, always it's a wonderful year and want to thank you, most particularly for helping to engage the energy world and the issues we're working on. because i think both colette and i know that energy environment and are really two sides of the same coin, and live -- we been working hard to make sure we bridge that gap and get a good understanding of the flexibility that states are looking for and the kind of carbon pollution standards we can deliver. the president made it really clear in his climate action plan

that epa had a significant role to play in the development of our, many of our actions, but in particular -- his challenge to us was to make sure we are crafting those rules in a way that would really be supportive of a vibrant 21st century economy. so what that really means i think to all of us is that we have come with to figure out how the design of those rules can really move states forward, can understand the energy plans that they have, the way they're looking at their energy supply as well as what we are looking at national opportunities to reduce carbon in states what we believe to be one of the most significant public health challenges of our time. so the joy of working with colette is that she's been able, among others in the energy world, to help provide us tremendous advice. as many of you know we've done significant outreach on the

111-d proposal in particular, doing more than 300 meetings, getting input from 10,000 people already even before we sent to rule over to begin an agency review. but that's where it is at this point, and i think michael is having been from the state, as jason indicated, my goal is not to supplant what the states are doing but to support it. it's to be able to look at states and the leadership they have provided and to try to translate that into opportunity for us, opportunity to get to a really good clean firebird 21st century economy. and that's the goal for all of us. i think climate change threatens that or else we wouldn't be doing these carbon pollution standards, but i think if we work together we will find a way to move all of this forward and drive the innovation, that will provide all of us a future, say future.

>> thank you, jason. good morning, everyone. it really is a delight to be here with you. she has me beat. she's got quite a few engagements today. quite a few this week. but usually a delight to be here with you, shortly to be here with our friends at the bipartisan policy center. jason is a different and it's a pleasure to see senator dorgan. i worked on energy project which was really a breath of fresh air. and margot helped to hurt us when we were led astray from time to time some issues but but there's only people that are passionate about this work. it's important work, and ralph i think it helped to bridge the gap. so i think our work collectively is another example of a way in which we can collaborate. i agree with gina, this work is not mutually exclusive. there's so much that we can do

when we do it together. i want to also publicly acknowledged thank you for your leadership. thank you certainly isn't a stranger to us at naruc. she is fearless and she would come and take us all on, even before she was administrator. it really has been a privilege to engage with her. i mentioned it to jason ahead of our beginning this morning that -- and by the way, you are getting a demonstration about the different business access this one. p.o. boxes on the right and my southern low accent on the left. -- boston on the right. i was mentioning to jason was what hit home to me in terms of the new effort to bridge this gap of environment and economic regulation was a meeting that we held, i believe it was an unprecedented meeting, at the white house with all of the energy principles in the obama administration and the naruc

executives meeting. we planned to go there to take our resolution on 111-d. i hope to talk more about that in a discussion, and the white house said we have the resolution of want to thank you for it. so they were on top of it. we are speaking the same language, and my message is that i hope that the states can be helpful in this work that gina is that the. i don't see any need to reinvent the wheel. i want to thank my colleagues at naruc. those commissions in the room, will you raise your hand? thank you. there's some commissioners -- thank you. there are so many commissioners across the country who represent the first states, regions, fuel mixes, states who are well ahead of many other in terms of renewable energy standards work. methane emissions, dream house

gas emissions, and now energy efficiency programs. so we have so many tools in our toolkit. we, too, have been delighted to engage more significant on this issue of 111-d, not only with jean and her team, and they been at every single one of our meetings, and i hope they will be at our next one spent you guys will be meeting in secret just to keep -- that's right. but also within industry with eei, with so many players who are in these issues as well. so i look for to the dialogue in the future. thanks again us together one more time. >> it is -- and currently smart, and kroger strategic and friendly. powerful advocacy combination but i commend all of you over the course of the next several months spent its disarming. >> this will be a friendly

conversation. i thought i would start out by saying, you got that proposed rulemaking in. you mentioned you been on a whirlwind tour and really it has been unprecedented, outreach. what surprised you? what did you learn through these discussions that you didn't anticipate knowing? >> i think, i don't think that the broad interest surprise me. i mean, clearly this is an important role. it needs to be an incredibly smartly crafted, smart -- >> my son has the same issue. >> i'm giving it it away already. smartly crafted to make sure that it provides the flexibility that states need what we are continue to provide the kind of impetus for carbon pollution

reductions that we need. i'm not sure that i was surprised -- it may be pleasantly surprised, frankly, as the tone of the discussion. i am incredibly pleased with the way in which the discussion has been both, both respectful as well as engaging in a positive way. i found, you know, the meeting did not spend time talking about the science of climate. it was not about climate denial. it was about the fact that many states understand that the climate is changing. they are concerned about it or they want to take action but they want to make sure that the action is measured and flexible enough that the states can continue to do their things. states that are out in front and continued to be there and get rewarded for that and recognized for it, states that haven't yet gone down this road can craft a way to do that at a time from that will be meaningful for them, that will provide them the

opportunity to gear up and do things that they believe are useful to their energy system as well as our collective environment. so i guess the surprise was that it's gone better than i expected in terms of being a very positive engagement and providing us with a ton of things to think about, which is probably the downside as well. we have to do a lot of thinking about this, but the good news is it is an interagency review and it really is, i think, the kickoff of the next round of discussions. there's no way we're going to end speed you're going to be on the road for a while. >> absolutely. then we will have a lot more concrete stuff to work through. i'm looking for to the. >> of that, there's an unprecedented engagement with naruc. an acronym that not everybody in this town knew prior to the last several months. flash forward a bit.

you mentioned the engagement of the economic and environmental and the power regulators, do you see that having a lasting effect as we move forward, not going to implement visual but just in terms of how states think about the environment? >> indeed. i might take a moment to just -- this you naruc celebrate its 125th birthday. we were formed in 1889 and we are comprised of economic regulators, regulators of public utilities. and this work touches every household, every business. and so we are very proud at naruc to support the work of our member states and u.s. territories. but getting to your question, what do we see in the future, i think it's a completely new day. at naruc, our outreach has been both internal and external.

internally, we have not only are task force on energy regulation and generation that's been working very diligently, led by the chairman of colorado and from maine, great tech groups -- energy resources and environment committee, even committees such as our clean coal subcommittee and members throughout naruc are very interested in working daily, literally, on these issues with document and five headed up by chuck gray. so the work we're doing internally is very different. the engagement that we've had with gina, singularly, is refreshing quite frankly. but also with her team, we've met with him at a number of -- [inaudible]

>> [audio difficulty] spent we are having some technical issues with our streets of discussions on greenhouse gas emissions with epa administrator gina mccarthy but it is hosted by the bipartisan policy center. we are working to correct the problem. we hope to return to live coverage momentarily. you are watching c-span2. ..

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>> we are having technical issues with our signal from the bipartisan policy center discussion on greenhouse gas emissions, gina mccarthy, and the featured panelists. we are working to fix the problem and returned to live coverage in a moment. while we will look at the week ahead in congress. david drucker is senior congressional correspondent for the washington examiner joining us for a look at the legislative week ahead. congress is back for one more week of work before starting their two week easter passover recess and house republicans will bring paul ryan's 2015 budget resolution to the floor. can you tell us what is in the proposal and when we can expect that to get started? >> you will see the debate throughout the week, they will vote on it before they leave for recess towards the end of the week and what is most notable about the budget is the fact that it increases defense spending beyond what the

president has asked for but given that republicans have been divided over defense spending and the fact they have been concerned about the budget where it relates to defense spending i thought was very interesting and so i suspect you will see the usual split debate over the budget with democrats saying all sorts of horrible things about it, republicans saying wonderful things about it, but at the end of the day it is like we passed and will go nowhere from there and will give republicans an agenda to run run and draw a contrast on fiscal issues with democrats, something important to them. >> in your article house gop tries to break from obstructionist label with paul ryan budget, how does the house republican leadership plan to do that and what type of lobbying efforts among republican efforts are underway to get that passed? >> i don't think it is a tough sell to be honest with you. i think republicans are eager to pass something, anything that

can show what they are for, show that they're not just against the president's agenda and if you listen to paul ryan and how he has discussed his budget, interesting to note the first thing he said on a conference call in the past few days was people ask why has he bothered to do this in an election year when it won't passed the democratic senate anyway and he made a point of saying a number of times and prompted that the republican party needs to be in a proposition party. and republicans are sensitive to what is portrayed in but press as a party of no, not having any new conservative ideas to help middle-class americans, and they don't feel that way, and a lot of republicans on the hill want to legislate and that is one of the reasons, and there's no

budget to do so politically. that is why not only because chairman ryan is close with many members and consulted with them. and he consults with members as they do it to capture, i don't think it will have a problem passing. and we will not hear much about this budget from a legislative standpoint once it finishes. >> there's also an article on how house democrats will make paul ryan's but the defining issue in the upcoming election season. can republicans know, primarily because democrats have a different view of budgeting at the federal level than republicans. not much they agree on. the murray ryan budget agreement we are living under right now is

notable for the fact that the two sides were able to come together to pass this thing but when you are looking at a budget document like this there is no reason for democrats to support it. you might see if you on the edges because there are house democrats in tough races that may want to embrace this but there is so much in the house republican budget democrats don't like and no reason for them publicly to support something they don't like in this regard that i don't think you will see that. >> senators are scheduled to vote monday evening on a five month extension of unemployment benefits. how did senator's reach agreement with that vote of 61-35 thursday moving ahead to final passage? what is likely to happen to the measure when it hits the house? >> you have senate republicans that have been negotiating on an unemployment extension because in certain states it is something members felt were needed and their constituents

support it. senator heller from nevada, republican, negotiated with senator jack reed from rhode island, a democrat and other republicans get involved and even though most senate republicans didn't support this particular extension for several reasons you had enough republicans that you were going to get to 60 votes. when they finally got around to figuring out how to pay for it or what other cuts to make to support the cost and figure out a few other things, five republicans you needed to get this thing across the finish line. the house is another matter because when house republicans would want to pass this extension, would be the attachment of some of their jobs related bills, reforms to jobs programs, democrats haven't been supportive of. you would have to get senate democrats to agree to do something in that regard so this

thing could get through the house in that way and only get them back through the senate that way. there are some house republicans in the same states that have been affected by unemployment that affected the republican senators who supported this. they are asking their leadership to at least consider a way to get this done. whether or not that happens i don't know. republicans in the house don't think this unemployment extension is good for job creation. in many ways that it hurts the people it is designed to help and there's a lot of resistance. >> the senate could squeeze in work on legislation dealing with pay equity along with raising the minimum wage. what is the status of those bills? >> still some issues with senate democrats relating to the minimum wage and i don't believe they have gotten on the same page so until they do, that is the first step, you need to see it get through the democratic senate. i don't think you'll see much chance of getting through a

republican house, that it actually is going to damage job creation, cause more unemployment you raise the minimum wage. a matter of philosophy and public policy republicans don't like it. so it may have some legs in a democratic senate. i don't know that gets through and it is a matter of the republican house and i don't see it. >> read david drucker in the washington examiner, senior congressional correspondent. thanks for joining us today. once again the senate is in live at 2:00 eastern on c-span2. you can see the house live beginning with morning hours at noon eastern, legislative business will start at 2:00 eastern with voting getting underway after 6:30 p.m. eastern. we apologize. we have been showing you the start of a series of discussions on the regulation of greenhouse gas emissions with gina mccarthy and others. we hope to get you back to that conference in washington as we

continue to work on the problem. while we try to fix it the house armed services committee on intelligence held an open session on friday on the budget covering the intelligence activities of the country. this is from friday. >> the meeting will come to order. today is the first of two events the subcommittee is posting related to fiscal year 2015 defense intelligence budget. today we will hear from the undersecretary of defense for intelligence and the heads of nsa and in the a and next week a second session with the senior intelligence officer of each of the military services as well as special operations command. health services committee continues to be focused on making sure our war fighters have the best possible intelligence support. d s a, at nsa and nga are

combat secured agencies and we ask them to secure merit military operations as well as to help dod anticipate and prepare for future conflicts. each of these agencies is part of the intelligence community and has responsibilities to both the larger u.s. government and the department of defense. that is a delicate balance and both missions are critical to our nation. over the past year we have been presented with numerous additional challenges whether it is the current crisis in ukraine, ongoing military operations against terrorist groups or mitigating the most serious compromise a classic information in u.s. history, intelligence and the protection of that intelligence continues to be one of the most important parts of our national defense. let me yield to the distinguished ranking member for additional comments he might like to make. >> i want to thank our witnesses for being here today, thank you

for organizing and putting together this important hearing. i hope today's discussion will be productive and constructive as we continue to exercise the subcommittee oversight responsibilities relating to the intelligence portfolio for which the armed services committee has responsibilities for. first, and foremost, i continue to be concerned about the implications to the department from weeks of the nsa contractor. i have read the information, reviewed task force report. it was an essentials assessment and a sobering one in feet. however, i would like to get a better idea of what we know now and what we don't know and what we are going to do about it. after all, as mr. clapper testified the vast majority of

the information comprised has nothing to do with nsa surveillance and collection but instead has dire impact directly on dod. i am very concerned about the damage assessment and practical effects of these leaks on our men and women of uniform. we are at risk each day but just as important is the way forward on mitigation. we certainly don't need to describe every operations plan but we do need to look at shifting department priorities and policies and i appreciate you speaking to the magnitude of what we will have to face in coming years. i am also interested in the progress and destine service and its ability to beat strategic defense priorities. i know that the defense service is not new to dni but it is under general flint's direction,

enhanced its capabilities and working to get an update on that. there have been pains but i believe the dod must maintain human capability which i have to say is sometimes challenging in the intelligence community. how is d.c. is progressing and improving its capabilities, moving officers in places where they can be most effective and integrating and court mating with others in the intelligence community. from a budget perspective, money above the budget control act levels v of the bipartisan budget act was given back largely to the services, putting particular strain on agencies like yours. we have to take some risks but there's a breaking point. we like to help you avoid that breaking point and manage your risk wherever possible. we appreciate the benefits of your perspective, and other cuts

of the department that could impair your activities such as these outcomes. finally, given today's hearing on qdr i would like to discuss defense strategy applications. looking out over the next decade, the defense intelligence apparatus correctly postured to meet our operational priorities and is it correctly aligned to cover the globe, operate where we need and operate to sustain and sustain our counterterrorism operations. with that i would like to thank you for holding this important hearing. thank you for your appearance today at your service to the nation and i look forward to continued and productive relationship as we work together to assure the best intelligence posture for the nation. thank you. i yield back. >> thank the gentleman. want to welcome our witnesses,

dr. michael vicars, undersecretary for intelligence, michael flynn, director of defense intelligence agency, leticia wonka of national diaz patient intelligence agency and mr. richard leggett of the national security agency. we will start with unclassified opening statements from each of our witnesses and reconvene in a classified setting next door where each witness will then be able to make brief classified remarks followed by members questions. dr. vickers, the floor is yours. >> distinguished members of the subcommittee, i appreciate the opportunity to come before you today to discuss fiscal year 2015 budget request for defense intelligence. i am especially pleased to be here with mike tisch and rick, betty satsop, director of the national reconnaissance office

testified yesterday before the strategic forces subcommittee. the unclassified nature of opening remarks keeps us from discussing in detail many aspects of defense intelligence, we look forward to meeting in closed session to discuss these topics more fully. intelligence is a major source of u.s. advantage. informs policy and enables precision operations. it is our front line of defense. the challenges we face, increasing and becoming more complex and our resources are declining. it is imperative that we make the best use of available resources given the challenges we confront. u udiprogram executive, have oversight over related programs that comprise what we call the battle space awareness portfolio, the department's fyi 2015 budget request for based appropriations is $13.3 billion which does not include overseas

contingency operations funds. the b 8 portfolio includes additional resources. defense intelligence collectively encompasses the defense portion of the national intelligence program and the be a portfolio. by close relationship with dni clapper and the intelligence community to work seamlessly to manage resources and apply our intelligence capability in pursuit of our national security objectives while avoiding duplication of effort. we have five defense intelligence operational priorities. countering terrorism, particular the the threat posed by al qaeda. countering the proliferation of weapons of mass destruction and associated delivery systems, countering actions of repressive governments against their people such as syria. countering state on state aggression, countering cyberthreats. to address the intelligence gaps that exist within these

operational priority areas we are focused on enhancing defense intelligence capability in five areas. enhancing global coverage, improving our ability to operate aerial denial environments, sustaining counterterrorism and counter proliferation capabilities, continuing to develop cyberoperations capabilities and strengthening counterintelligence capabilities and reforming security clearance processes to minimize insider threat. all four of us are committed to working with congress to define the best way to deliver intelligence advantage to our nation and our war fighters. thank you for the opportunity to address the subcommittee today. i turn to my colleagues to address what they're doing with individual agencies to further our defense intelligence. >> members of the subcommittee, on behalf of the men and women

of the defense intelligence agency thank you for your invitation to discuss our fiscal year 2015 budget request please let me begin by saying i support the priorities mr. vickers outlined in his remarks. as you heard from admirals' mccraven and rodriguez and austin in their appearances before the full committee your earlier this year the need for more timely and accurate intelligence continues to exponentially grow. persistence crisis in the middle east and recent developments in crimea, central africa and asia pacific region underscore the constant drum beat for more fighters and policymakers for chris specialize understanding and insight into countless threatened military capabilities around world. you and i have a responsibility to our planned women to make smart decisions in these austere times to take risks where we must and maintain those investments, well into the future. dia made significant changes, to

meet increasing aberrational needs, to threaten military advantage. during testimony this morning dilate critical authorities in our request, intelligence correction operations, all source analysis, investments in our work force for professional development and career broadening experiences and how we have reshaped much of our business practices and process. within intelligence correction operations, insuring success of the clandestine service is a priority not only for dia but the defense department and intelligence community as a whole. your oversight and support helping dcs mature, and make measurable progress with defense equities. on all measures trade craft, professional as asian and the quantity and quality of recruitments we have experienced a marked increase this year.

and a critical assessment for dia, recent events remind us accepting too much risk can come at an unacceptable costs. our budget request focuses investments on creating a holistic strategy that addresses counterintelligence, increases network monitoring, improved insider threat identification and fortifies a security conscious concert culture with our work force. second call source analysis is the core mission of dia and comprises the largest portion of the budget. this will mitigate global coverage risks particular the by forging closer ties to the combatant commands joint intelligence operations centers through the agency's intelligence integration centers. it is analytic and collections worse for -- work force to maximize enterprise support to operational decisionmaking and strategic policy. only in their first year of operation our combined

performance in response to the recent crisis in ukraine flash points in the south china sea, instability in sub-saharan africa and the ongoing civil war in syria highlight the benefit of multifaceted integration and collaboration as well as a strong/up with a combat command jobs. third, over the past year we have increased our investments in our workforce professional development programs as well as career broadening experiences. in terms of professional development week consolidated 21 separate offices into one academy of defense intelligence, realizing an immediate cost savings of $3 million. additionally through our office of the defense intelligence we have reemphasized enhanced training for analytic work force to our new professional analyst career education program. in terms of career broadening experiences this past year we rotated 225 dia and combat command personnel overseas and plan on an additional 320

personnel for f y 15 further integrating defense intelligence enterprise. lastly to further prepare our work force for an uncertain future we have also consolidated three military reserves offices and over 1200 reservist bullets under one two stock component. the impact of these changes has seen an improvement in analytic production, decreasing contract instructors and increase in the number of mandates we get out of reserve intelligence component. fourth we are taking steps to significantly improve our contracting business processes with the start small scale fast they'll cheat strategy. that reduces risks, shortens delivery time by 69 months, mitigates the too big to fail track we get ourselves into. we are particularly proud of our work with small businesses which are generating original ideas we need for the future. the federal government average of small business contract is less than 25% but that dia we

have doubled our investments in small businesses reaching of i have 31% and nearly one of every $3 we invest is invested in small business. as you review our overall budget request you will find we made the hard choices and the right investments to ensure our fully integrated defense intelligence team of highly skilled professionals is equipped with the right training and technology strengthened by partnerships across the whole of government and around the world and we will continue to provide all sorts of defense intelligence whenever and wherever required in support of our war fighters. thank you for your continued support and look forward to your questions. >> good morning, distinguished members of the subcommittee. thank you for the opportunity to discuss the national diaz spatial intelligence program and the nga budget request for fiscal year 2015. thank you for your continued support to enhance defense

intelligence. the cooperation and collaboration between our agencies has never been stronger. geo spatial intelligence is the analysis of information from a number of unique and highly technical sources that describe, assess and visually depict physical features a geographically referenced activities on earth. geoint has always been interval to military operations around the world and today it is one of the drivers for intelligence integration because everything in the world is some place at some time. as the lead federal agency for geoint, nga provides critical information to the defense community, military commanders, decisionmakers, troops deployed in harm's way and first

responders. content analysis and services enable mission planning, combat operations, strategic warning, precision targeting, counterterrorism operations, counter proliferation, gps navigation and humanitarian assistance and disaster response. as an example nga produces and sustains global, aeronautical and maritime safety of navigation information from military flight crews and sailors and civil mariners. this effort includes updating electronic records on more than 35,000 air field starting more than 116 million square miles of ocean and managing data on over 3 billion topographic features world wide. bottom line is without this information our ships would stay in port, our pilots would not fly and our ground forces would not leave. the second example of the contribution of geoint is the

integrated temporal and spatial view of the battle space nga provides combatant commanders and policymakers by identifying fred force capabilities, locations, patterns of activity, relationships and infrastructure around the globe, nga helps commanders and policy areas hold adversaries at risk. to support these types of missions nga personnel deployed all over the world embedded alongside of military and intelligence personnel and participate in mission planning, execution and follow-up. the intelligence nga provides everyday is critical to the planning and operations of intelligence agencies and military units fighting to protect all americans. in the broadest terms of the vision that drives nga's work force is putting the best geoint in the hands of our soldiers, sailors, airmen, marines and coast guards. we continuously seek to produce more value for war fighters

whether it is through a map, imagery and technical analysis or specialized interactive product. looking ahead, the budget request includes funding for expanding our analytic capabilities, next-generation collection strategies to anticipate devolving national security threats. shaping and retaining skills and diverse work force and enhancing protection against cyber and insider threats to keep our information and our people safer. these investments are all lined with a number of long-term strategic initiatives nga is pursuing to improve our contributions to the war fighter and the intelligence community as a whole including better intelligence integration, providing better access to our data especially for the war fighter and enhancing analytic tradecraft to discover key unknowns hidden in the masses of data. in addition to the strategic initiatives that focus on

long-term success of the agency we have kept a close eye on the more immediate risk from russia and ukraine to iran, north korea and china to syria, afghanistan and counterterrorism operations as well. finally i want to mention nga's progress to financial lauded ability, the agency is undergoing our first full scope audit of our 2014 financial statements and the results from this audit will help us identify areas required additional remediation as we move toward our goal of achieving an unqualified opinion on our 2016 financial statement. on behalf of the women and men of nga, thank you for your support. >> chairman floyd mary, distinguished members of the subcommittee, thank you for the opportunity to address you today. on behalf of the upstanding women of the national security agency and central security service thank you for your

support the congress and this committee in particular give to nsac nsacss. you help us to provide insurance expertise to our diverse customers especially combat commanders and military personnel in harm's way. with your continued support in have why 2015 we will continue to do all we can to protect the nation. ..

>> while preparing for the future for the development of next generation capabilities all while scrupulously protecting privacy and civil liberties. our fiscal year 2015 budget, while accepting risks mandated by the current fiscal climate, keeps us on the path to accomplish these goals. we've recruited and trained an extraordinarily talented work force, and the fy-15 budget allows us to preserve it. we're leveraging our human capital by providing the most technologically sophisticated equipment. investments will expand to meet the speed of action required in today's world. as you know, nsa executes three distinct funding streams, the ccp, the information system security program if the ill tear intelligence -- and the military intelligence program or mip. let me briefly describe our

emphasis areas. the ccp enables us to bring the capability of a system to bear in support of our national war-fighting commands. nsa's global intelligence capabilities, clip to analytic and an analytic trade craft andl righting mechanisms have been -- reporting mechanisms have been developed over time, and i look forward to providing specific and recent examples in the classified session that will follow. nsa-css' information assurance investment plan responds to the challenges of providing security solutions that keep pace with the fast-moving technology sector and agile adversaries. we must know the cyberspace environment and its risks, protecting information and hardening systems this the national security cyber domain. this will insure that systems have their required security characteristics commensurate with known and anticipated risks and the ability to withstand and recover from cyber attacks and

intrusions. we are continuously refining our strategies to provide know how and technology to suppliers and clients and to measurably improve the security of critical operations and information. nsa-css' military intelligence program investment plan focuses on delivering response i have, reliable l -- responsive, reliable and effective intelligence to insure our deployed forces can succeed in today's operations and are prepared to respond to future threats and technologies. the nsa-c,css continues previous investments to improve dod intelligence, surveillance and reconnaissance capabilities, providing timely and accurate support to our deployed forces, achieving interoperability, commonality and modernization of service and u.s. special operations command signals intelligence isr capabilityings. nsa-css will also continue to support an effective joint

tactical system that provides access to targets that use a global converged communications infrastructure. the mip investments strengthen the department's ability to address current cyber challenges. specifically, fy-2510 investment -- 2015 investment will focus on intelligence gathering in cyberspace. these initiatives will focus on providing u.s. cyber command cyber mission force support, personnel training and threat operations support and infrastructure. we will also continue investing in the rebelling and development -- research ask development of solutions that produce fall intelligence for deployed forces. we will be responsive to the needs of combatant commands as directed by the chairman of the joint chiefs of staff. i'll conclude by saying that the nsa-css budget request reflects the fess balance between today's fiscal realities and our

unwavering commitment to support of the joint war fighter. thank you for your continued support in helping nsa-css maintain world class capabilities and serve as a key contributor to the protection of our nation. >> thank you all. we will heedly reconvene -- immediately reconvene next door, and with that, the open hearing stands adjourned. [inaudible conversations] >> that hearing from last week. well, we are continuing to have technical issues with our coverage of the bipartisan policy center discussion on

greenhouse gas emissions that we were showing you earlier today. we want to let you know that we are taping it, and we plan to have it for you later in our program schedule on the c-span networkings. the u.s. senate is back today at 2 eastern, they will hope to finish work extending unemployment benefits, a final passage vote for 5:30 this afternoon. you can see live coverage here on c-span2. the house also in today. members come in at noon eastern for morning hour speeches and then two p.m. for legislative business. well, last week u.s. trade representative -- [inaudible conversations] >> house ways and means committee on the so-called tpp and other trade issues. at the hearing, chairman dave camp of michigan called on the president to step up his support for a new bill establishing specific rules for passing trade agreements. this hearing is about three hours. >> good morning.

[inaudible] there is a mechanical difficulty on the seventh floor of this building. i've spoken directly to the superintendent's office. they're trying to repair it as we meet, but it's going to to be a little chilly all morning in here. welcome, ambassador froman, thank you for coming pack to the committee. obviously to, we're very aware and appreciative of how hard you and your staff have work today advance u.s. trade policy. a trade policy that opens markets for american exports, enforces international rules and insures a level playing field for american workers is proven to promote job creation here in the united states. the success of american workers, businesses, farmers and ranchers is directly linked to finding new markets, expanding existing ones, effectively dealing with market's barriers and enforce, our existing agreements. u.s. trade policy is at an important crossroads. congress passed the trade agreements on strong bipartisan votes in basis last congress, and in the process the united

states recaptured its leadership role in the global trade negotiations. this past december u.s. leadership was critical to insuring that the wto ministerial in bali produced the trade agreement, the first hullty lateral agreement since the wto was created nearly 20 years ago. the trans-pacific partnership is nearing conclusion, and i hope it will be completed as soon as possible, this year. progress in the e.u. negotiation is encouraging. the trade and services agreement negotiations are well underway in geneva with 50 countries participating as the newly-kicked-off wto negotiation on environmental goods. we are trying to conclude an expansion of the information technology agreement assuming china acts more constructively. we have an active bilateral investment treaty negotiating agenda with china, india and others. all these initiatives hold the promise of significant economic gains, supporting more good jobs that pay well here in the united states. birdies mantling barriers and creating robust enforcement

mechanisms to prevent future barriers. these agreements will tackle both tariff and nontariff barriers including 21st century issues like state-owned enterprises, forced localization, regulatory coherence and trade facilitation. they will create more opportunities for u.s. companies by integrating them more deeply into global supply chains. to conclude and implement these negotiations, we need to pass trade promotion authority legislation. that's why this january i introduced h.r. 3830 along with then-finance committee chairman baucus and ranking member hatch as well as rules committee chairman sessions and trade subcommittee chairman nunez. tpa is how congress sets its priorities and instructs the administration how to achieve them this. every president since fdr has had some form of this authority. the legislation establishes specific rules for how the administration must consult with us and assures congress the final say in approving any trade agreement. this tpa bill includes new

provisions to keep members informed and provide a formal process to guarantee that members' views will be taken into account. if the administration does not keep us informed, the bill provides that we can strip tpa. the need for this bill is resonating powerfully among members and key stake holders. they know tpa helps our negotiators get the very best deal and realize the economic benefits of our trade agreements. but while the president called for tpa in his state of the union speech, he's been silent since. and, ambassador, i know you've been working hard, but if we're going to the get tpa done, we need full engagement by the entire administration. this is an all hands on deck moment for the administration to engage with congress and the american people on this bill. i look forward to hearing from you about the plan to bring t, a across the finish line. in addition to negotiations, we must also address the challenges and opportunities represented by trade partners around the world including the major emerging economies, china, yaipped and brazil -- india and bra.

they provide enormous potential. we must address trade and investment barriers such as new an expanded bilateral investment treaty agenda. i'll conclude by pointing to a recent pew study on america's place this the world which found that 66% of americans see benefits from greeter involvement in the global -- greater involvement in the global economy. with 95% of the world's consumers outside our borders, americans are keenly aware of the need for strong u.s. engagement abroad. let's seize this opportunity on trade front. i'll now yield to ranking member levin to make an opening statement. >> thank you, mr. chairman. i hope you won't find it out of order for me to say a few words with since your public announcement. i think we all felt the same way, mr. chairman. your dedication to public service has been unswerving for

your district, for the state, and i think for this country. you have brought dignified and warm touches to your leadership, and we're all grateful for that. and -- >> we'll need that warmth today. [laughter] >> well, i think it may overcome the lack of heat. it won't be too hot, will ambassador. >> thank you. >> but we feel that, mr. chairman, and you've led this committee in a way that i think is very much in keeping with a tradition in this committee that goes back long, long before any of us have served. and so we listen to your announcement with, i think, very mixed emotions, and ask we look forward to working -- and we look forward to working with you in in the days ahead.

>> thank you very much for those very gracious comments. yes, will lewis. >> with i would like to be identified with the comments -- >> well, thank you. >> -- the gentleman from michigan, you're my neighbor upstairs in the cannon building, and you're my friended. you're not just the chairman. and i want to thank you for your years of service, for your openness and for all that you've done to make michigan better and make our country better, and your service will never, everforgotten. >> well, thank you very much. >> mr. chairman? >> yes. >> i think it's premature for me to say too many kind things about you before this session's other. [laughter] but i can tell you that you have been a breath of fresh air in an atmosphere that has been a tremendous disappointment to so many of the to members that

served here. but you have managed not withstanding the differences in our parties always to be professional, always to be a gentleman, and this my case always to be -- in my case always to be a trend, and it's deeply appreciated. >> well, thank you. i think we better get moving before i start performing like john boehner. mr. levin's recognized. [laughter] >> okay. we've talked privately, and i think a lot of us wanted to say something publicly -- >> with i really appreciate it. thank you very much. >> the noticed a vising this hearing focused on trade promotion authority, specifically the tpa legislation introduced in january by you, mr. chairman, and former senator baucus. i believe that legislation is

deficient. but let me suggest that the focus today should not be on tpa, but on the critical, ongoing negotiations with tpp countries. the tpp represents both opportunities and major challenges. the opportunities stem from the dramatic economic growth in asian-pacific nations. we are at a critical stage in the those negotiations. but the outcome of a long list of fundamental issues, that outcome remains uncertain. some of these challenges reflect that this is the most complicated multi-party negotiation this 20 years in terms -- in 20 years this terms of the issues involved and the number of countries that individually present negotiating challenges. for example, the 12 trading partners including japan, the third largest economy in the

world with an export-dependent and no to have yously closed -- notoriously closed market. the korea agreement was hard and remains hard with a number of disturbing implementation issues outstanding and, in some cases, growing. japan will be harder. important markets in japan are even more closed, and its economy is bigger. for the united states, tpp is unique in that there is involved one to one negotiations with one of the largest industrial nations and competitors. the negotiations also include vietnam, a kindist country with a longstanding command economy and a very poor record on labor rights and the rule of lawment lawment -- law. the colombia agreement was hard and remains hard with the deeply troubling record of compliance with the labor action plan.

vietnam will be harder. the fact that the communist government believes it and not independent labor unions chosen by the workers themselves represents workers in the workplace creates a new threshold issue. in brunei, malaysia and mexico also present challenges with respect to the implementation of the labor commitments. the list of major outstanding issues in tpp is too long to recite or describe here, but it includes currency manipulation, environmental protections and labor standards, access to medicines, food safety rules, state-owned enterprises, tobacco controls, cross-border data flows and private protection and investment issues. i hope all of us today can discuss these issues. the tpa introduced by you, mr. chairman, and senator baucus would not effectively enough guide our negotiations to get

these outstanding issues right. indeed, in a number of key respects the tpa doesn't provide a lot of guidance. for example, on currency manipulation it provides no real guidance, instead, leaving it to the administration to determine what is appropriate. there is also no guidance as to how to insure that vietnam implements its commitments. on the pricing of pharmaceuticals, the bill calls for the elimination of price controls and reference pricing, but neither the u.s., nor any other tpp country is supporting such a proposal. and the bill provides little guidance in determining what an acceptable outcome is with japan on automotive or agricultural market access. nor would that tpa bill provide much guidance as to how to improve consultations and transparency in the tpp negotiations. it largely does two things; it

codifies the current procedures and requires the administration -- not congress -- to develop new guidelines for consultations in the future. indeed, the bill would require the administration to develop new consultation gripes four months after congress might pass a tpa. that would not help tpp. i believe that congress needs to be fully involved right now. congress needs to be a full partner in these negotiations. my message to our trading partners is clear: the congress will support an agreement that expands trade. if and when it does so in a way that benefits u.s. workers and businesses, effectively addresses critical new issues, strengthens our economy and protects our values. getting the substance is right

is what is key now. i, therefore, hope we focus in this hearing on the wide-ranging, substantive issues embedded in tpp. we also need to discuss other important negotiations including the transatlantic agreement and the services agreement. ask we need to act on other legislation, including the miscellaneous tariff bill, preference programs and customs enforcement and facilitation. mr. ambassador, we deeply appreciate your hard work. i understand you've worked so hard that your wife had to come here today to listen to what you're going to say, and so we welcome your wife, nancy. you've enjoyed some important enforcement successes lately. we welcome your appearance today. >> well, thank you. >> thank you very much, mr. levin. again, welcome back to the ways and means committee, ambassador froman. we have your written statement.

it's made part of the formal record. you have five minutes to summarize your testimony. >> well, thank you very much, chairman camp, ranking member levin, members of the ways and means committee. thank you for having me back here and for this opportunity to testify on the 2014 trade policy agenda. let me also take a moment to associate myself with mr. levin's comments about the chairman and underscore how much we valued the working relationship we have had and how we look forward to continuing that working relationship over the course of this year. the core of the obama administration's economic strategy is to create jobs, promote growth and strengthen the middle class in america. our trade and investment policy contributes significantly to that strategy by opening markets for made in america products, leveling the laying field by raising standards so that -- laying field by raising standards and enforcing our trade laws and our trade rights. done right, trade policy creates opportunities for american workers, farmers and ranchers,-ers and service providers, innovators, creators,

investors and businesses. businesses of all sizes, and very importantly, the small and medium-sized businesses. done right, trade policy promotes not only our interests, but also our values, and it gives us the tools to make sure others play by the same rules that we do. the obama administration has a strong record of success in promoting u.s. exports and creating jobs here at home. over the past four years, u.s. exports have increased to a record high of $2.3 trillion. in fact, a third of our total economic growth is attributed to this increase in u.s. exports. and exports mean jobs. each $1 billion in increased exports supports 5400 to 5900 u.s. jobs. 11.3 million americans now owe their jobs to exports. that's an increase of 1.6 million in the last five years. and those are good jobs, jobs that pay 13-18% more on average than non-export related jobs. indeed, increasing exports and the well paying jobs they support is a critical tool for

dealing with inequality in this country. in 2014 we'll work to conclude negotiations on the tpp agreement. a key pillar of our rebalancing strategy to asia. tpp is currently being negotiated among 12 country, some of the largest and fastest-growing economies in the world, representing 40% of the global gdp and a third of global trade. we're working to insure that the final agreement will provide comprehensive market opening for goods and services, strong and enforceable labor and environmental standards, commitments on intellectual property that promote innovation and creativity as well as access to information and life-saving medicines. ground breaking new rules designed to insure fair competition between state-owned enterprises and private company, and for the first time, obligations that will address the issues of the digital economy. we're also working to complete parallel negotiations with japan to address longstanding issues related to autos, insurance and other nontariff barriers. and building on last year's successful launch, we expect to

make significant progress towards a ttip agreement with the european union, this will further underscore the strategic importance of the transatlantic relationship. agriculture is vital to the american economy. in 2013 u.s. farmers, ranchers and growers exported a record $148 billion of food and agricultural goods to consumers around the world. and this year this administration aims to help them build on that record performance. u.s. manufacturing plays a key role in our economy today and in the future. as american manufacturers increase our capacity to produce more advanced and value-added goods, consumers around the world continue to place a high value on products made in america. in 2012 the u.s. exported nearly $1.4 trillion this manufactured goods -- in manufactured goods, and in 2014 we aim to build on the strength of our manufacturing sector. the u.s. is an innovative economy, and the obama administration is committed to protecting intellectual property which is vital to promoting and

encouraging innovation and creativity. millions of americans' jobs rely on intellectual property, and we'll continue to use our trade agenda in 2014 to defend the ip rights of our creators and innovators while encouraging the free flow of information across the digital world and insuring access, particularly by poor cups. the wto will capitalize on the success. in march we notified congress of our intent to enter into negotiations on an environmental goods agreement with the world's largest traders in environmental goods, representing 90% of this $1.4 trillion market. we'll also move this year towards conclusion of negotiations on two major sectoral agreement, the trade and services agreement and the expansion of the wto information technology agreement. the obama administration has placed unprecedented emphasis on trade enforcement. this administration has filed 17 wto complaints and doubled the

rate of cases filed against china. in fact, just last week the u.s. scored an important victory for america's workers, manufacturers or and for upholding wto rules on fair access to raw materials that are essential for maintaining u.s. manufacturing competitiveness. and through our ongoing enforcement agenda, we're leveling the playing field for key agricultural producers, aircraft workers and manufacturers of wind turbines and high-tech batteries across the country. as we work through this agenda, we'll continue to consult closely with congress and seek input from a wide range of advisers, stakeholders and the public. we've held over 1200 meetings with congress about tpp alone, and that doesn't include the meetings we've had on ttip, tpa ask other trade initiatives. our congressional partners preview our proposals and give us critical feedback, and we assure that any member of congress has the opportunity to receive detailed briefings by our negotiators. we're increasing the diversity

of trade policy input we receive through the creation of the public interest trade advisory committee to include stakeholders focused on consumer, public health and other public interest issues. and consistent with the statute, the administration so liciting qualified candidates to serve on itax, our industry advisory committees, to insure they are representative of industry, agricultural services and labor interests. finally, let he say a word about trade promotion authority. the last tpa legislation was passed over a decade ago, and much has changed since then. there has been the may 10, 2007, bipartisan agreement on labor, environment, innovation and access to medicines driven by key members of this committee. there's been the emergence of the digital economy and the increasing role of state-owned enterprises in the global economy. these issues should be reflected in the statutory negotiating objectives of a new tpa bill. we've heard from many that tpa needs to be updated, and we agree. the administration welcomed the introduction of the bipartisan legislation in january and looks

forward to working with this committee and congress as a whole to secure trade promotion authority that has as broad, bipartisan support as possible. we also look forward to renewing trade adjustment assistance which expires at the end of this year. the ambitious trade agenda creates opportunities for new, well-paying jobs, higher growth and a stronger middle class. it incentivizes individuals and businesses to bring back, expand and start new production here in the united states, and at its core this trade agenda emphasizes strong, enforceable rules that promote u.s. values and u.s. interests. and, of course, we could only accomplish these goals and priorities through strong, bipartisan cooperation between congress and the administration. thank you again for the opportunity to testify, i'm happy to take your questions. >> well, thank you very much, ambassador froman. earlier this year i introduced a bipartisan, bicameral trade promotion authority legislation, and obviously, it sets out specific negotiating objectives that congress wants to achieve. in our trade agreements.

and there's a robust framework for congressional consultations and actually insures that congress has the final say on consideration and implementation of any trade agreements. i believe this is absolutely essential legislation to negotiate and conclude the best agreements possible, and it strengthens, frankly, ustr's hand at the table. mr. ambassador, are you committed to meeting the objectives set out in tpa, and will you comply with the extensive consultation with congress and information-sharing provisions set out in tpa? >> well, mr. chairman, we very much look forward to working with this committee and with congress as a whole to get a trade from motion authority bill that's got broad, bipartisan support. and in that context, we very much look forward to meeting the negotiating objectives and the consultation procedures included in such a bill. as you said, tpa is the way that congress gives us our negotiating objectives, our marching orders for negotiations, tells us how it wants us to work with congress

before and during the negotiation and, ultimately, what procedures congress will use to approve or disapprove any trade agreement we bring back. and we very much think that having that authority over time helps open markets and increase exports which helps drive job creation here in the united states. >> i appreciate that. and you and i have previously discussed this. it's very important for congress and particularly this committee to know the details of negotiations so that we can consult in a meaningful way. and we can provide our guidance and views to the administration as we move forward. because consultation without the appropriate information really cannot with consultation. our level of access to information with the prior administration's -- with prior administrations halls always been complete and thorough. do you commit to providing us the most updated information including access to all the text in a timely and complete way? >> i do. >> well, thank you very, very much for that. you know, i very much appreciate