▶ 0:17:16Chair Cruz: Good morning. The senate committee on science and transportation will come to order. I want to welcome our colleagues, senator risch, senator kelly, glad to have you joining us in this committee at least for a few moments at the opening. Today, we will be hearing from four nominees. Stephen carmel, nominee for administrator of U.S. maritime administration. Laura dibella, robert harvey, nominees for commissioners of the federal maritime commission.
▶ 0:17:46Chair Cruz: And timothy petty, nominee for assistant secretary of commerce for oceans and atmosphere my deputy administrator of the national oser and atmospheric administration. Congratulations to each of you. Let's begin with Mr. petty, who would serve as deputy administrator for noaa. A geoscientist and engineer, Mr. petty has spent more than two decades on capitol hill where he is currently a senior professional staff member for the house committee on transportation and infrastructure.
▶ 0:18:17Chair Cruz: During the first trump administration, Mr. petty served as assistant secretary for water and science in the department of the interior. As second commandant at noaa, he will draw on his policy expertise to manage U.S. fisheries programs and to protect coastal and ocean resources. Next are the two republican nominees for the federal maritime commission, laura dibella, robert harvey. Ms.
▶ 0:18:43Chair Cruz: Dibella previously served as port director of the port of fernandina, executive director of the florida harbor pilots association, and head of florida state-level economic development organization. Mr. harvey is an attorney with 30 plus years navigating complex regulatory schemes and promoting economic development. A former U.S.
▶ 0:19:10Chair Cruz: Navy jack officer, he currently leads two public corporations in florida. Finally, stephen carmel, who will draw on decades of experience to advise the secretary of transportation on federal maritime policy, as administrator of the maritime administration. A graduate of the U.S. merchant marine academy, Mr. carmel served on U.S.
▶ 0:19:34Chair Cruz: Vessels as a deck officer and shipmaster, before joining maersk line limited. He is well-versed in maritime operations and security having sat on the board of advisors for the merchant marine academy and the chief of naval operations executive. Mr. carmel will support secretary duffy's efforts to fortify U.S. maritime security, shipbuilding, and infrastructure.
▶ 0:20:03Chair Cruz: Like our nominee, I am concerned that china's maritime industrial base dwarfs our own. That is why I look forward to the administration's forthcoming maritime action plan, which will address this geopolitical challenge. At the same time, I continue to believe that we need a maritime strategy focused on attracting capital and removing regulatory barriers, not simply picking winners and losers.
▶ 0:20:32Chair Cruz: American shipyards can compete globally without heavy-handed protectionism but only if they lean into nascent industries like sea bed mining and nuclear powered shipping, not those where we are at a distinct comparative disadvantage. Thank you to our nominees for joining us today. I'm eager to hear how each of you will approach federal maritime policy. With that, I recognize ranking member cantwell for her remarks.
▶ 0:20:59Sen. Cantwell: Thank you, Mr. chair. Congratulations on your nominations. It is good to see our two colleagues here, senator risch, senator kelly. I certainly enjoyed working with Dr. petty and senator risch on the columbia river treaty many years ago. I know firsthand of his legislative skill set. Congratulations on this nomination.
▶ 0:21:25Sen. Cantwell: Today, we want to discuss the concrete steps our nation is taken to invest in our shipyards, ports, workforce in the effort to build new, larger ships in the united states. These investments are not just important international trade issues for the united states, these are the kinds of investments that are needed to build our future maritime workforce, our economy, and support our national defense.
▶ 0:21:50Sen. Cantwell: There is a strong bipartisan support on this committee for american shipbuilding but we need to ensure these investments we authorize will be implemented by this administration. I look forward to discussing with them nominees here how we can accomplish that. Mr. carmel, certainly enjoyed our conversation yesterday. Truly believe that you have a vision for what needs to happen. I appreciate that.
▶ 0:22:14Sen. Cantwell: You are nominated to be the administrator of the ma, the agency responsible for fostering the maritime industry. You clearly have relevant experience to starting up the merchant marine academy and continuing as a deck officer of a master on a U.S. flag vessel in your senior positions at maersk. Certainly believe that you have a keen view of what needs to be done. I believe this experience will serve you well.
▶ 0:22:44Sen. Cantwell: I know that you have expressed concerns about the deterioration of the U.S. maritime, as you call the come ecosystem. I share that word. It is an ecosystem. Just like other ecosystems we've had to invest in, I look forward to asking questions about how critical that is for supply chain issues for the united states of america, when supply chain issues have become a dominant issue. Covid proved that to us and that we have to think about it as it relates to very strategic assets and resources.
▶ 0:23:16Sen. Cantwell: Senator risch and I have been partners on fusion strategies. Certainly, fusion is one of those things where the supply chain will be critical. Next, and Ms. dibella, Mr. harvey, good to have you here at the committee. I see that we have two other federal maritime commissioners here. Three. Sorry. Thank you.
▶ 0:23:41Sen. Cantwell: This speaks to the commission's important jurisdiction over ports and international open -- ocean shipping, charged with protection and interests of U.S. shipping and regulating licenses. The fmc, while not a household word, is certainly playing a pivotal role for us as we saw during covid, importantly congress created the federal maritime commission.
▶ 0:24:07Sen. Cantwell: I expect commissioners to maintain this independence, that is to say despite various administration efforts to undermine the agency, we want it to continue to remain strong. Ms. dibella, your service as the first female sec. Of commerce for the state of florida, florida pilots association, certainly comes with some relevant experience. I appreciate that. Mr. harvey, I have not had a chance to visit with you. I look forward to hearing more about your navy jag experience.
▶ 0:24:38Sen. Cantwell: I hope that you'll address your view about the federal fmc this morning and what you think needs to happen. What I will say to you is that we need to can need to be proactive. As a more global economy and economic opportunities are outside the united states, so much of the concentration is with foreign carriers. We will lean on Mr. carmel to help change that. In the meantime, how do we make sure there are fair policies and that the commission is doing its job in protecting consumers?
▶ 0:25:08Sen. Cantwell: We do not want U.S. shippers, product left on docs, we don't one unfair practices, and we don't want unfair rates. Mr. petty, as I mentioned, happy to have worked with you in the past on this important issue of the columbia river treaty. Congratulations on the nominee -- nomination to the noaa. If confirmed, you'll be responsible for fisheries, habitat, climate resilience, and many other issues.
▶ 0:25:37Sen. Cantwell: I believe that your experience up here on the hill will serve you well. I hope to hear from you, how you will succeed in this environment, especially when it comes to the essential work that noaa does supporting healthy fisheries, the 2.3 million jobs depend on the seafood industry, and important issues of stock assessment. This committee has been clear about stock assessment.
▶ 0:26:05Sen. Cantwell: You cannot catch a fish if you have not done the stock assessment. We need to fisheries to continue to work. This requires providing noaa with expertise and resources. Noaa has lifted the hiring freeze or some weather personnel but what about fishery personnel? We need to get the stock assessments done. We need the personal to do them. I know my colleague, senator sullivan, will agree with this. When it comes to protecting our coastal economies, scientists are not optional.
▶ 0:26:36Sen. Cantwell: Let's not forget the president proposed a 20% cut to the budget and the agency has lost at least 576 fishery staffers, nearly one in five, under this administration. Very concerned about that. They are seeing real impacts from this. A number of our stock assessments in new england have been canceled this year. A regulatory freeze led to the overfishing of the atlantic bluefin tuna off of north carolina. In my state, salmon are incredibly important economically and culturally.
▶ 0:27:07Sen. Cantwell: We depend on noaa for this long-term sustainability. I look forward to ask you questions about that, what you can do to help correct these issues at the department. Thank you, Mr. chairman. I look forward to the testimony of all the witnesses and our colleagues who are here to sing praises on them.
▶ 0:27:24Chair Cruz: Thank you, senator cantwell. I will turn to our calling from the great state of arizona, senator kelly, to introduce Mr. carmel.
▶ 0:27:35Sen. Kelly: Thank you. Chairman cruz, making member cantwell, members of the committee, thank you for the opportunity to speak today on the nomination of stephen carmel to serve as the administrator of the maritime administration. As I know this committee is painfully aware, the U.S. maritime industry needs a lot of help. Right now, the U.S.
▶ 0:27:55Sen. Kelly: Federal government, mostly through the navy and the coast guard, is the primary customer of large, and in the case of the coast guard, not so large, oceangoing vessels built in U.S. shipyards. There are only about 80 ships out of more than 50,000 globally. They fly the U.S. flag in international commerce.
▶ 0:28:21Sen. Kelly: By contrast, china has 5500 oceangoing merchant vessels that operate under the chinese flag. Three in every four commercial ships built in the next decade will be built in a chinese shipyard, if we don't do something about it.
▶ 0:28:40Sen. Kelly: For decades, both political parties have made the failed assumption that we could build our way out of this deficit by just giving the navy and the coast guard additional funding year-to-year, and not by actually re-thinking how we make the commercial maritime industry commercially viable in the united states. We need to do both.
▶ 0:29:04Sen. Kelly: We need policy solutions that include the private sector, and that is why I'm here to support stephen carmel's nomination for maritime administrator. Unlike his immediate predecessors in this job, steve will bring four decades of experience working in the commercial maritime industry. Steve and I both attended the U.S. merchant marine academy, not at the same time, but we were also both in six company. After graduating.
▶ 0:29:36Sen. Kelly: Steve served aboard U.S. flag merchant vessels as a deck officer and a master for the maritime overseas corporation, military sealift command. He became a master, which is the captain of the ship come at just 26 years old. For those that don't know the industry well, that is incredibly fast. Talented guy. After a decade at sea, he transitioned to work ashore for maersk line limited and U.S. marine management.
▶ 0:30:04Sen. Kelly: At a time when we are facing a shortage of qualified mariners, steve brings first-hand knowledge of what it is like to work at sea. He would be the first administrator in 20 years to hold an unlimited masters license. At a time when leaving to incentivize shipowners from around the world to invest in U.S. flag fleet and U.S. shipyards, steve will bring a private sector perspective to our efforts to rebuild the U.S.
▶ 0:30:35Sen. Kelly: Maritime industry. Steve understands we need to reform how dated regulations and find innovative strategies to put more cargo on U.S. vessels. U.S. flag vessels.
▶ 0:30:51Sen. Kelly: At a time when there is bipartisan momentum to rebuild america's maritime industry as indicated by both ships for america act and president trump's executive order on maritime dominance, we need leaders who can hit the ground running on day one. I believe stephen carmel is the right leader for this moment and can do that.
▶ 0:31:16Sen. Kelly: I know that he will demonstrate his thoughtfulness and depth of knowledge of the industry at today's hearing. I hope his nomination will be quickly advanced. We need him in this job. The motto at kings point, our alma mater, deeds not words. Steve is a leader of action. It is a pleasure to introduce him to the committee today. Thank you.
▶ 0:31:44Chair Cruz: Thank you, senator kelly. Appreciate you bringing a little bit of latin into this hearing. That is a level of erudition we try to avoid in the senate commerce committee. I welcome the colleague from the great state of idaho, senator risch, to introduce Dr. petty. Welcome to the commerce committee.
▶ 0:32:10Sen. Risch: [indiscernible] this one is working. Thank you, eric chairman cruz, ricky member cantwell. Thank you for allowing me to speak today. It's a real honor and privilege to personally introduce Dr. tim petty, who is been nominated to be assistant secretary of commerce for oceans and atmosphere.
▶ 0:32:38Sen. Risch: Tim was an integral part and member of my staff for many years and continues to be a trusted friend and in addition to that he comes in from time to time and keeps me up-to-date on things that are happening in his lane. I truly appreciate that. Tim brings a deep and informed understanding of the complex intersection between water policy and scientific research through a rare combination of technical expertise and legislative experience in both houses.
▶ 0:33:09Sen. Risch: Tim's experience as a senior legislative staff in both chambers give him holistic understanding of various water and natural resource challenges and a long history of working with his colleagues in a bipartisan basis to solve problems. He has also served under both president bush and president trump at the department of interior including serving as president trump's first term as the assistant secretary for water and science, a post he was confirmed by the senate unanimously to.
▶ 0:33:40Sen. Risch: In his role, he oversaw the usgs and the bureau of reclamation, solving western water issues and collaborating on intra-agency basis with the U.S. army corps and noaa. Particularly close to home for ranking member cantwell and I both, tim has specific experience working in the columbia river basin. We have an issue there right now that is incredibly important to both senator cantwell and I, and our constituents in the region.
▶ 0:34:11Sen. Risch: As I said, it is bipartisan. It is incredibly important. In his last stint at the agency, he represented interior as part of the united states negotiating entity for the columbia river treaty and work with senator cantwell and I both as we represented the northwest in the senate through treaty negotiations. These have been logged, dare I say, senator cantwell, difficult, and complex.
▶ 0:34:40Sen. Risch: I think we're actually seeing some light at the end of the tunnel. There is starting to see some movement. Senator cantwell and I have worked on this for years and years. We have been ably guided by tim, who has helped us through these very complex web of negotiations. In addition to his extraordinary qualifications, it cannot be overstated, his character. Tim is a true public servant and has answer the call time and again to give his time and talent to the american people.
▶ 0:35:12Sen. Risch: Having worked closely with tim since coming to the senate, I can confidently say he brings thoughtful, measured judgment to every issue he encounters, treats others with respect, and approaches leadership roles with humility. Tim has built a distinguished career in public service and is exceptionally well prepared to serve as the assistant secretary of commerce for oceans and atmosphere. His expertise and experience will be an incredible asset to the department of commerce and to our country.
▶ 0:35:43Sen. Risch: Again, chairman cruz, ranking member cantwell, thank you for the committee's consideration and considering tim petty's nomination. Thank you so much.
▶ 0:35:51Chair Cruz: Thank you, senator risch. I certainly appreciate the movie reference to "a few good men" as he looked up and said what kind of shoddy operation are you running here with microphones that don't operate. We cannot handle the truth. [laughter] I will say, four staffers have lost their job in the time that you have said that. I now recognize Mr. carmel for his opening statement.
▶ 0:36:22Mr. Carmel: Thank you. Thank you to senator kelly for the kind introduction. Good morning, chairman cruz, ranking member cantwell, and members of the committee. Thank you for allowing me to be here today. I am honored to appear before you as the nominee for the position of maritime administrator. Please permit me to introduce my wife, alison, a navy veteran from a long line of coast guard officers, and our sons, john and greg, who are here with me today. I graduated from the U.S. merchant marine academy, class of 1979, and went to sea immediately thereafter.
▶ 0:36:51Mr. Carmel: I sailed steadily, earned my master's license, and commanded ships that sailed every corner of the world. My time at sea was marked by more highlights than I could recount here, but perhaps the most meaningful was my service in the arctic, and experience that sparked a lifelong fascination with that region and inspired much of my later academic work. After coming ashore, I held a variety of executive positions with maersk line, limited -- the U.S. flag subsidiary of one of the world's largest shipping companies -- and later became president of U.S.
▶ 0:37:20Mr. Carmel: Marine management, my current position, following our acquisition by maritime partners, the leading jones act provider of vessel leasing and construction financing. I also returned to graduate school and collected a few extra initials along the way.
▶ 0:37:36Mr. Carmel: Throughout my shoreside career, my colleagues and I faced challenges ranging from two middle east wars to the complex logistics of supporting operations in afghanistan, revolts in angola and inland grain movements in russia, piracy off of somalia's coast, and even an earthquake and nuclear disaster in japan. Those experiences taught me many things, but two lessons stand out. First, maritime strength depends on people, and it must be built long before a crisis occurs.
▶ 0:38:06Mr. Carmel: And leadership is about execution, accountability, and partnership. I have been fortunate to work, both at sea and ashore, alongside some of the finest men and women this country has to offer, and I am very proud of all that we accomplished together. Now, if given the honor of confirmation, it is time to take up a new challenge. We are a formidable naval power, but we are not yet a true maritime power.
▶ 0:38:32Mr. Carmel: For more than 150 years, we have searched for a maritime policy that works, even as our industrial capacity has declined to a point of near irrelevance. Both in our ability to carry our own commerce and to build the ships that do it. We have outsourced those capabilities and we have sacrificed much of our independence in the process. A strong maritime sector is not nostalgia, it's strategy.
▶ 0:38:57Mr. Carmel: It means resilient supply chains we control, credible logistics for our joint forces, good jobs across our coasts, rivers, and great lakes, and the freedom to move what america needs, when and where america needs it, under our own flag. We have done hard things before. With this commission's guidance, and in partnership with labor and industry, we can do them again. We will not be the generation that stood on the sidelines and passively watched our noble industry die.
▶ 0:39:24Mr. Carmel: We will be the generation that rebuilt it stronger, smarter, faster, and ready to answer the call. If confirmed, I will work in a spirit of partnership to meet our challenges and uphold the traditions of my alma mater, and
▶ 0:39:42Live By Its Motto: Acta non verba -- deeds, not words. Thank you, and I stand ready for your questions.
▶ 0:39:48Chair Cruz: Thank you. I now recognize Ms. dibella for her opening remarks.
▶ 0:39:57Ms. Dibella: Chair cruz, ranking member cantwell, and members of the committee, good morning and thank you for the opportunity to appear here before you today as a nominee to be commissioner of the federal maritime commission. A sincere thank you as well as for the courtesies that your staff extended to me throughout the nomination process. I would like to recognize fmc commissioners, dye, maffei, and vekich and thank them for being here in supportive attendance. And most importantly, I would like to thank president trump for nominating me for this most important role.
▶ 0:40:28Ms. Dibella: It is with great pleasure, humility, and honor to be nominated for this position as well as a homecoming of sorts to the maritime industry for me. In 2017, while spearheading local economic development in nassau county, florida, I was approached to wear a second hat and stand in temporarily as port director at the port of fernandina, a small and often overlooked seaport surrounded by juggernauts named jaxport, port of brunswick, and port of savannah.
▶ 0:40:57Ms. Dibella: The port was going through a rough transition with its sole terminal operator and had little resources to spare for a qualified port director. I knew very little about ports back then, except for the fact that they were vital economic engines to a region and state, and because of that, and without hesitation and compensation, I willingly took on the role. Little did I know at the time that the decision to support the port was one that would change the trajectory of my life and career forever.
▶ 0:41:21Ms. Dibella: What began as a temporary assignment resulted in a two-and-a-half-year journey that put me at ground zero of seaport operations, port authority governance, and the integration of a port within the economic development space and overall supply chain network.
▶ 0:41:36Ms. Dibella: The knowledge I gained while serving dual roles greatly enhanced my economic development capabilities and afforded me the opportunity to form lasting relationships with past and present, and hopefully future members of the maritime administration team and that of the maritime community at large.
▶ 0:41:54Ms. Dibella: In the fall of 2019, I was approached about the executive director role for the florida harbor pilots association, a full-time position that never existed in the organization's 150+ year history, that that put the livelihoods of florida's nearly 100 harbor pilots in my hands. I dove headfirst into the job and learned at the most intimate level about an aspect of the maritime industry that very few outsiders have the privilege of seeing.
▶ 0:42:23Ms. Dibella: Before long, we were met with the covid 19 pandemic shutdown, which dealt a massive blow to florida as the self-proclaimed “cruise capital of the world” with the cessation of cruise activity for nearly a year and a half and resulting supply chain crisis which upended their world and exposed every element of the fragile transportation network that we rely upon day in and day out.
▶ 0:42:48Ms. Dibella: If that wasn't enough, we were also heavily engaged in blocking a potentially precedent setting citizens' initiative at the port of key west that could have had broad implications around the restriction of cargo across other seaports around the country and world. The measure served as a stark reminder that ports, although local in nature, are truly global in principle and must be viewed and protected as such.
▶ 0:43:10Ms. Dibella: In the summer of 2022, I was appointed secretary of commerce of florida along with president and ceo of enterprise florida and entrusted with maintaining and growing what was then the state's $1.5 trillion economy, and once again had the pleasure of working with all 16 of florida's seaports in a larger economic development capacity.
▶ 0:43:30Ms. Dibella: As the third largest state in the nation and 16th largest economy in the world, it was then that I also engaged heavily in international trade discussions with key trading partners around the globe as well as economic development efforts involving the newest mode of transportation to intersect with maritime, which is the incredibly exciting space industry.
▶ 0:43:50Ms. Dibella: I say all of this in the hopes to demonstrate not only my hands on experience, knowledge, and unique perspective of the maritime space, but also my sincere passion and commitment to the industry. If my past superiors had enough faith in me not only to do the job at hand, but do it well, I hope so can you. More than anything, however, I hope my past shows just how dedicated I am to the economic and security interests of this great country.
▶ 0:44:18Ms. Dibella: If I am confirmed as a commissioner of the fmc, I will uphold the statutory directives of the ocean shipping reform act of 2022 and ensure that the economic and homeland security needs of our country are always at the forefront of every discussion. I promise to be fair minded and objective when collaborating with my fellow commissioners and fmc staff to positively contribute to the fmc's vital and growing mission.
▶ 0:44:44Ms. Dibella: I will work to eliminate unfair shipping practices by foreign governments and do everything in my power to guarantee that shippers, common carriers, ocean transportation intermediaries, and ports regulated by the fmc are provided with a fair market environment in which to operate. Thank you again for the honor and privilege to sit before you today and for your hopeful support. I look forward to working with all of you.
▶ 0:45:09Chair Cruz: Thank you. Now recognize Mr. harvey for his opening statement.
▶ 0:45:14Mr. Harvey: Thank you. Chairman cruz, ranking member cantwell and members of the committee come is an honor to appear before you today as a nominee to be commissioner of the federal maritime commission. I also want to thank your respective staff for all their efforts and the professionalism shown to me during the nomination process. I would like to thank commissioners dye, maffei, and vekich for meeting with me during the confirmation process and for attending today's hearing.
▶ 0:45:43Mr. Harvey: I would like to recognize my wife, debra, who has been my law partner, is my life partner, and has fully supported me in my desire to return to public service. Finally, I would like to thank president trump for the honor of nominating me today. If confirmed, I look forward to continuing the important work of the fmc at this critical time for the united states ocean transportation system and supply chain.
▶ 0:46:08Mr. Harvey: I will work to ensure that the fmc maintains a competitive and reliable international ocean transportation system and protects U.S. consumers, exporters and importers from unlawful, unfair, and deceptive ocean transportation practices. For the past three years, I have been engaged in multiple economic development roles in florida. With 1300 miles of coastline, sixteen public seaports and seven cruise ports, I have gained an even greater appreciation for the maritime industry.
▶ 0:46:38Mr. Harvey: While I am a proud floridian, I was born, raised, and educated in illinois. The first water-borne commerce I ever saw was barge traffic, containing agriculture, coal and bulk goods, floating on the des plaines river, through the middle of my hometown of joliet. The first large bulk carrier I ever saw was a laker. The great lakes shipping industry supports tens of thousands of jobs directly, and is a vital economic engine for the cities, towns, and people, of the region.
▶ 0:47:10Mr. Harvey: If confirmed, I look forward to ensuring fair conditions for all U.S. shipping. I began my career with the united states navy, where I served on active duty at naval station great lakes, illinois, as a navy judge advocate and special assistant U.S. attorney. After aft after leaving active duty I served as a reservist with amphibious group 2, little creek, virginia and U.S. naval forces europe, london, united kingdom.
▶ 0:47:40Mr. Harvey: One of the my lessons learned is that economic security and national security are inseparable. After leaving active duty I began my civilian law career in private practice. After two years, I joined a start up, moved to new york city and became general counsel. After being with that company for seven years and a successful exit, I served in various roles in law, business, finance, and public service.
▶ 0:48:08Mr. Harvey: Most recently, I've been a partner of chase and harvey, law firm in west palm beach, where my practice was concentrated in securities litigation, arbitration, and regulation. I returned to the public sector in november 2022 as the general counsel of enterprise florida, inc., florida's principal economic development organization. Today, I serve as president and executive director of the florida opportunity fund, florida's venture capital fund.
▶ 0:48:36Mr. Harvey: The fund is a $180 million venture capital fund which invests in florida-based, new technology companies. In terms of the maritime industry, we have invested in cybersecurity companies that protect critical assets including vessels, ports, and maritime infrastructure. We have invested in companies that fuse real-time data with ai to track real-time missions, improve operational efficiency, at sea and shore.
▶ 0:49:02Mr. Harvey: We have invested in logistic companies that provide multimodal last-mile delivery solutions, which reduces time and shipping cost. Currently we are reviewing quantum solutions in the maritime industries, potential breakthroughs in route and fleet optimization, sensing and navigation, secure never cap -- navigation and predictive maintenance.
▶ 0:49:26Mr. Harvey: Finally, I also serve as the executive director of florida development finance corporation. That is the state authorized issuer of industrial revenue bonds. In the last two years, fdfc has issued over $8 billion of tax-exempt, taxable, and private activity bonds.
▶ 0:49:46Mr. Harvey: We are currently reviewing several projects where private activity bonds may be used for infrastructure including docks, and manufacturing. If confirmed as a commissioner of the fmc, I believe my over 35 years of diverse experience in the military, legal and regulatory affairs, business, investment and finance, technology, and economic development will allow me to positively contribute to fmc's vital mission.
▶ 0:50:12Mr. Harvey: In closing chairman cruz, , ranking member cantwell, and members of this committee, thank you for holding this hearing today.
▶ 0:50:24Mr. Petty: Chairman cruz, distinguished members of the committee, thank you for the opportunity to appear before you today. I am deeply honored to be nominated by president trump to serve as assistant secretary of commerce for oceans and atmosphere. I also want to thank secretary lutnick for his confidence in me, and senator risch for his kind introduction and for his steadfast leadership on behalf of the people of idaho and also of this nation.
▶ 0:50:53Mr. Petty: It is a privilege to be here, and I respectfully ask for your consideration and consent to this nomination. Before I begin today, I would like to take a moment to recognize friends and family. Foremost, my wife, elaine, is behind me here today. She has always been a big supporter and foundation throughout my journey here in washington, D.C. my parents and four siblings are watching remotely from the family farms back in indiana. My mother, esther, is 93, and my stepfather, vernon, is 97.
▶ 0:51:25Mr. Petty: Their resilience, faith, and work ethic have been a guiding light for me in my life. I was born and raised on a family farm in grant county, indiana. Our farm was more than a livelihood, it was a classroom, and a place where I learned the values that have shaped my life of hard work, faith, and service.
▶ 0:51:46Mr. Petty: From milking cows before the sun would rise to bailing hay in the summer heat, to watching the skies for signs of rain that could make or break a season on the farm I came to , understand the deep connection between people and the land. Our farm bordered rivers and a gravel pit, which sparked my early fascination with water, geology, and the natural systems that support them.
▶ 0:52:11Mr. Petty: That curiosity led me to pursue a science degree at purdue university. I began my career in the private sector, working as a geologist and hydrogeologist in indiana, california, and even abroad. I learned the intricacies of groundwater systems, seismic activity, the environment, and fishing. But I also realized that science alone wasn't enough. I needed sound policy to guide how to manage natural resources.
▶ 0:52:41Mr. Petty: That realization brought me to washington, D.C., where I joined the staff of senators connie mack, rick santorum, and senator risch. During my time in the senate, I've had the privilege of working with many of you members here and your staff. Whether it was advancing hydropower legislation, supporting tribal water rights settlements, or strengthening our water infrastructure and of course the environment, I've seen firsthand the power of collaboration and the importance of science-based policymaking.
▶ 0:53:16Mr. Petty: I later earned by ph.d. In water resource science from the university of alaska fairbanks. I was focused on hydrology and digital transformation. At the department of the interior, I was honored to serve twice, first under the george w. Bush administration, and later as assistant secretary for water and science under the trump administration. In these roles, I provided oversight for the U.S.
▶ 0:53:39Mr. Petty: Geological survey and the bureau of reclamation, managing programs critical to our nation's water security and scientific advancement. These experiences deepened my understanding of the complex interplay between science, policy, and public service. They also reinforced my belief that effective stewardship of our oceans and atmosphere requires not only technical expertise, but collaboration, and a commitment to transparency.
▶ 0:54:07Mr. Petty: Most recently, I've served in the house of representatives under chairman graves on the committee on transportation and infrastructure. This included work with the army corps of engineers, the epa, noaa, and other key agencies . If confirmed, I will bring my full energy, experience, and dedication to advancing noaa's mission. I will champion innovation, transparency, and collaboration.
▶ 0:54:32Mr. Petty: I will listen to the voices of scientists, stakeholders, and all the communities involved. And I will work to ensure that our policies are grounded in sound science and guided by the public good. I look forward to supporting noaa's dedicated workforce and advancing its critical work in oceanic research, weather forecasting, fishery monitoring, and environmental resilience.
▶ 0:54:57Mr. Petty: Together, we can ensure that our oceans and atmosphere are managed wisely for today but also for future generations. Thank you again for your consideration. I look forward to your questions.
▶ 0:55:11Chair Cruz: Thank you. President trump has been vocal about restoring american maritime dominance. I think most americans would be disturbed to learn that our ports are light years behind europe and asia in using automated technology. You only have to look at the supply chain snarls outside of california's sports from a few years ago to see how poorly our country did at moving cargo quickly from ship to shore.
▶ 0:55:41Chair Cruz: Mr. carmel, why are american ports so archaic compared to their foreign counterparts?
▶ 0:55:46Mr. Carmel: Thank you, senator. No question about it, in terms of our ability to productivity behind. There is a variety of reasons, some of which I was not around four. The real issue though at the end of the day is using technology in a way that leverages labor, makes labor more productive, and allows us to compete at the level of foreign ports.
▶ 0:56:22Mr. Carmel: We should use technology in a way that does not displace jobs. We should use technology in a way that enhances them. Magnifies them so that workers can be productive. At the end of the day, it is productivity we have to deal with.
▶ 0:56:38Chair Cruz: Is the problem a lack of federal spending or too much red tape and other factors?
▶ 0:56:44Mr. Carmel: I think it's a combination of both. Regulation certainly can get in the way. I think that some of it is just inertia. To be honest with you. We have to ignite and innovation drive. I know the ships act has innovation in it.
▶ 0:57:13Mr. Carmel: I know that it has the maritime innovation center. Waterfront workers has an innovation section. There are three competing programs for innovation. We need to leverage them and make sure they are used in a way that we can provide value, compete, find ways to make our workforce productive.
▶ 0:57:41Mr. Carmel: Make sure the workforce understands that the waterfront is a good place to have a long, productive career, a place to raise families. And deal with it that way.
▶ 0:57:53Chair Cruz: Mr. petty, noaa reviews offshore oil and gas activities for compliance with nepa. Endangered species act, engage in marine mammals act. It is set to expire in april 2020 six. The expiration of these regulations would curtail geophysical activities related to oil and gas exploration and production in the gulf of america.
▶ 0:58:23Chair Cruz: If confirmed, will you ensure that these incidental take regulations are renewed by april 2026 to prevent any permitting delays?
▶ 0:58:32Mr. Petty: Chairman, thank you for the question. It's an important one. We have to make sure we have the focus on these areas of regulation. I look forward to getting into the department and looking specifically at all the priorities that are set, so that what is coming due, that we can address them immediately.
▶ 0:58:55Mr. Petty: The president and the administration, as well as the secretary, has said that we need to focus on regulatory, making a focus, doing things right, and that is the commitment that I make. Making sure the laws are met, that the regulations are quick and decisive and clear moving forward.
▶ 0:59:14Chair Cruz: I can certainly echo that it is the president's commitment and secretary lutnick's commitment to move swiftly and not have permitting delays. I trust that you, when confirmed, will implement a streamlining to ensure that permitting can move forward efficiently. How do you hope to streamline the environmental permitting process beyond ensuring timely renewal of the incidental take regulations?
▶ 0:59:42Mr. Petty: Again, I look forward to getting income if confirmed, but streamlining, I think, needs to be a partnership not only with the different agencies that have oversight, not only commerce but interior and other agencies. They need to be looking at that not in a rail, where it goes from one card to the next to the next, but all tracks are parallel, working together.
▶ 1:00:09Mr. Petty: I think we can do that with the technology of interacting with the resources of the regulatory so we can all be looking at them at the same time and moving things much more quickly, versus the old method, which is when one packet is done, it gets moved to another committee.
▶ 1:00:27Chair Cruz: This last question is to the federal maritime commission nominees. Federal maritime commission has a near omission, insuring a competitive ocean transportation system. Mr. harvey, Ms. dibella, what are the statutory functions of the fmc, and will you commit, if confirmed, to stay within the bounds of your authority? Mr. harvey.
▶ 1:00:55Mr. Harvey: The statutory commitments are to create, have a reliable ocean transportation system. I think that we would stay in our lane in terms of our jurisdiction, but we are there to review the agreements that are filed with our agency, to ensure that they are there in a reasonable and not anticompetitive.
▶ 1:01:23Mr. Harvey: We also have an enforcement edition, regulation to ensure that competitiveness and enforcement when necessary. We have an adjudication process to make sure that all the players in the system can get their disputes resolved quickly. I will look to stay in our lane and I would hope to have marketplace solutions to these problems.
▶ 1:01:49Chair Cruz: Ms. dibella.
▶ 1:01:52Ms. Dibella: I echo Mr. harvey's statement, all of it. Taking it a step further, we would work very collaboratively with other agencies, service transportation board, who never would be involved with the matter at hand. In ensuring the whole system is being addressed.
▶ 1:02:13Ms. Dibella: That is the overarching, outside the statutory responsibilities that we have, we are responsible for the entire system to be efficiently and competitive and also reliable. That is really the crux of the conversation, how do we do that is addressing the business needs. Businesses that are looking, operating here in the united states, or are looking to operate here.
▶ 1:02:43Ms. Dibella: We are functioning as that of authority that is responding to their inquiries, to their needs, then taking action as appropriate.
▶ 1:02:53Chair Cruz: Thank you. Ranking member cantwell.
▶ 1:02:57Sen. Cantwell: Thank you, Mr. chairman. Lots of questions. I would try to get through as many of them as I can. Mr. carmel, you support the jones act? ?
▶ 1:03:07Mr. Carmel: Yes, I do.
▶ 1:03:09Sen. Cantwell: Thank you for your vision of a maritime nation. We had a chance to talk about many issues related to that shipbuilding financing. We didn't spend as much time talking in my office though about workforce issues. I want to bring up what do you think we need to do to deal with the serious shortage?
▶ 1:03:29Sen. Cantwell: Clearly, the sun has been very concerned about sexual assault, sexual crime at sea, passing legislation, looking for new leadership to make sure that the academy is requiring a workforce that is well aware of what the conduct should be. If you have thought about what we should do their.
▶ 1:03:47Mr. Carmel: Thank you, senator. One of the big thing we have to do for the workforce for the future is ensure the workforce understands that the future will be there. It is very difficult to attract people into the industry if they are afraid that a year or two of the ship that they signed on will be gone, they will not have a job.
▶ 1:04:12Mr. Carmel: Building a stable, credible maritime industry that can produce a ladder for a career path that is going to be around for a while, I think, is one of the biggest things we have to do. We have to do a better job at educating the american student body about what is out there. That the maritime industry is a good place for a good job. And training programs.
▶ 1:04:39Mr. Carmel: We tend to often focus on officers like kings point, but ships don't run unlicensed as well. We need to make sure that pipeline is also operating the way it should. Full marks to the unions, siu, very good and that sort of stuff, but we need to support them. I know the ships act, the waterfront workers act both have training money there for that.
▶ 1:05:08Mr. Carmel: In terms of kings point, we have a long way to go to get kings point fixed. No question about it.
▶ 1:05:14Sen. Cantwell: You are referring to the sexual assault issues.
▶ 1:05:17Mr. Carmel: Yes, ma'am. And over all. At the end of the day, kings point is an academic institution. We need to ensure that when students and instructors walk through the gates of that place, they are proud to be there. I think that has a lot to do with the attitude of people. I think the discipline instilled in a regimental system could probably stand a little bit of tightening up. I think that will help.
▶ 1:05:45Mr. Carmel: At the end of the day, it is common sense, making sure that people treat each other with respect. It is not that hard of a concept. I know it sounds stupid because we have had failures in the past , but we have to really hammer that home, at sea, at shore, period.
▶ 1:06:02Sen. Cantwell: We look forward to your leadership on that. Dr. petty, if you could comment on support for pac serve, stock assessments, noaa organic act.
▶ 1:06:17Mr. Petty: Senator, thank you for the question. First of all, stock assessment. That is a high priority for the administration along with the executive order that prioritizes the stock assessment. I look forward to working with now-confirmed undersecretary neil jacobs on specifically implementing and making sure we have the resources and personnel to get the stock assessments done.
▶ 1:06:42Sen. Cantwell: Pac serve, noaa organic act? Mr. petty: absolutely. Looking forward to working with you on.
▶ 1:06:53Sen. Cantwell: A reverse approach to what senator cruz asked, we need the federal maritime commission obviously working with the marad nominee here to assure that both american consumers and american exporters are not taken advantage of. Mr. harvey, it was good to hear your detail of experience on the technology side. Mr.
▶ 1:07:18Sen. Cantwell: Carmel and I had a great conversation about block chains, manifests, things that may help us accelerate our leadership position on supply chain issues. But he also mentioned unfair and deceptive practices. That was clearly what was happening to us. I don't think most americans understand, we don't control shipping today. We control calling on our ports, but these are basically big international carriers that try to dictate to us what business was going to be like.
▶ 1:07:48Sen. Cantwell: Thank god we passed a new law and give more authority to the commission. What do you have in mind when you are looking at unfair or deceptive practices, again, when we'll try to build a maritime nation again under the leadership here that we are talking about, but we also have to show to the international community is calling on our ports, that we will be serious about unsubstantiated increases in rates, practices where they are leaving us high and dry on the docks with our U.S.
▶ 1:08:19Sen. Cantwell: Products.
▶ 1:08:24Mr. Harvey: That is where the reviewing of the agreements, launching alliances that operate , to make sure there are not anticompetitive practices. It is a unique ecosystem in the maritime industry, where there is very limited amount of providers and agreements that, on the one hand, could be helpful, and making the system more efficient, making capacity more available.
▶ 1:08:55Mr. Harvey: But they are also very capable of becoming anticompetitive.
▶ 1:08:59Sen. Cantwell: I just want to clarify, you are not afraid to use that authority in ways when you see problems that may exist.
▶ 1:09:07Mr. Harvey: When I saw it in the security industries, regulations is an important part of what we do in rulemaking. I would say that nothing gets in industry members attention like an enforcement action. When that is necessary -- I was on the other end of those. I know when those get filed and it is attention-getting, for sure.
▶ 1:09:26Sen. Cantwell: Thank you, Mr. chairman. Whatever comments you have on the record, Ms. dibella. You have had more involvement in this, so we have some understanding of your record.
▶ 1:09:36Ms. Dibella: I appreciate that. Thank you very much. I would say that the carriers make the market, so it is a bit of a balance that we have to have with them. I appreciate that their role in all of this, however, we do need to provide, and to provide some good oversight.
▶ 1:10:01Ms. Dibella: I hope for additional transparency, that that relationship will improve, will be able to have a more efficient system.
▶ 1:10:09Chair Cruz: Thank you. Senator fischer.
▶ 1:10:14Sen. Fischer: Thank you, Mr. chairman. Mr. carmel, as you know, there are three programs that ensure U.S. flag vessels are available for the sealift. The jones act, cargo preference, and the maritime security program. What importance do you put on those programs?
▶ 1:10:32Mr. Carmel: All three programs are critical to sustaining the fleet we have now. They are not on their own going to help us grow it but they are critical to making sure that we don't go backwards.
▶ 1:10:48Sen. Fischer: Do you have any ideas on ways that marad could possibly improve on those programs?
▶ 1:10:54Mr. Carmel: Those programs themselves do what they are intended to do. The maritime security program, one of the problems with the maritime security program that we experience, and at the end of the day, it is the security program, another one, which relies on government preference cargo. At the end of the day, it is not about ships, it is cargo. Our industry is built on cargo. If we don't have any cargo, how many ships we have is irrelevant.
▶ 1:11:23Mr. Carmel: We need to do a better job of generating cargo. For the maritime security program and the tanker security program, we are talking about preference cargoes. Not enough of that around to scale. We also need to find ways to generate cargo that does not come from the american taxpayer. .
▶ 1:11:47Mr. Carmel: If we want the size of fleet that we are talking about, we are going to have to get our fleet back to caring the nation's commerce. Not just focused on the military.
▶ 1:11:59Sen. Fischer: Any potential conflict, our sealift assets will be indispensable. So that we can take care of our forces, so that material can transit to the theater of operations. The ready reserve force fleet is a key component of our sealift capability. Because of systemic underinvestment, its readiness has suffered. Would you agree with that?
▶ 1:12:25Mr. Carmel: No question, yes, ma'am.
▶ 1:12:28Sen. Fischer: Giving your operational and corporate experience, how can marad work better with industry to revive that ready reserve force? Back to your cargo.
▶ 1:12:41Mr. Carmel: There are two programs in place right now. One is still being worked through, the legislative process, which is building ships for the ready reserve force. The other one is the buy new youth ships. That put a band-aid on the problem. That gets ships into the fleet relatively quickly.
▶ 1:13:09Mr. Carmel: But there are still ships that are sitting in talk and don't do anything.
▶ 1:13:13Sen. Fischer: Do you think you'll need any additional authorities to better execute that recapitalization of that force?
▶ 1:13:21Mr. Carmel: I would have to get in the building and understand what marad is doing on that now. What we are doing right now is heading down the same path that we have always headed down and got us to where we are today.
▶ 1:13:36Sen. Fischer: Thank you, sir. The fmc has undertaken significant efforts to enhance port efficiency and has taken a closer look at the tension practices. The fmc can play a crucial role in improving port operations. Ms. dibella, Mr.
▶ 1:13:56Sen. Fischer: Harvey, if confirmed, what specific criteria would you prioritize to ensure agreements align with fnc standards, and facilitate efficient freight movement overall?
▶ 1:14:13Ms. Dibella: Thank you for the question. In regards to the tension and truly any matter, once confirmed, once I'm able to be briefed fully on many of these issues, I believe, going back to more transparency, understanding the realities of are left and resulting in such
▶ 1:14:48Ms. Dibella: Detention and demure and's charges. Uncovering where the inefficiencies are, at looking at things systematically, we go back to the issues at the waterfront that largely get into the interior. This is a very comprehensive look at every aspect of the supply chain, understanding exactly where the issue is created.
▶ 1:15:19Ms. Dibella: Taking action in that regard. It could be elsewhere. Maybe not in the interior. It could be far off another 3000 miles away in the ocean. But it is taking a very comprehensive look. >> to add to that, I am an investor in technology for the state of florida. I want to ensure regulations coming from the fmc encourage innovation.
▶ 1:15:49Ms. Dibella: Some of the problems can be solved. We invested in last mile delivery. That is multimodal. It is real. It's a truck. If we can create fair and competitive markets I think that private capital will flow and help solve some problems. Whether it is fixing these types of problems or larger problems with renovation and upgrading which is a huge capital lift.
▶ 1:16:22Ms. Dibella: It is not just for government alone. >> thank you. Senator moreno.
▶ 1:16:29Sen. Moreno: Congratulations, all four of you, for being nominated. What is the state of our maritime industry in america? Top 10, bottom 10, middle of the pack? >> thank you, senator.
▶ 1:16:57Sen. Moreno: It is something I lose sleep over all the time. I am not even sure we are on the scale.
▶ 1:17:04Sen. Moreno: What happened? That was not always the case. Go back to the 40's. We won world war ii because we could produce a lot of ships. What happened from them until now?
▶ 1:17:17Mr. Caramel: Senator, that is correct. The first stab at trying to repair a badly damaged merchant marine started in the 70's and we had -- have been repeated cycles of this ever since the so we have had a long history of not getting this right.
▶ 1:17:46Mr. Caramel: It is right that we did a great job of cycling up from world war ii because we have the industrial capacity to do it. Prior to world war I, we had to cycle up. Most of the ships we build for the world war I search were too late to matter for world war ii. World war ii we had to cycle up again. Interestingly enough, Mr. kaiser was a dam builder.
▶ 1:18:14Mr. Caramel: He was the one that built the ships. We did a great job. We knew how to build things. That is the difference. Our industrial capacity. After world war ii -- and by the way. There is a problem. Every term we do this. Every time we cycle up and devote a lot of stuff for a war and then the war is over and we are faced with, what do we do with these ships? We let our industrial capacity brought again.
▶ 1:18:44Mr. Caramel: This time we let it rot too far. I don't believe personally we can do that again. I don't believe we have the industrial capacity we need now to be able to do that. And I think it manifests itself all throughout the maritime industry and in many ways ripples out into the U.S. economy.
▶ 1:19:05Mr. Caramel: It is imperative that in order to get the maritime industry right we fix the underlying maritime infrastructure and industrial capacity. At the end of the day, the wealth of a country is not about how many dollars are in the bank. The wealth of a country is about our capability to build our own future for tomorrow. We have sacrificed to that, but we need to get it back.
▶ 1:19:30Sen. Moreno: Mr. harvey, there are parts -- ports in florida, texas, the east coast, the west coast. Though, I won't hold my breath for new ports going into the west coast in this current political environment. There is a place called the great lakes. I don't want to get my democratic colleagues said.
▶ 1:19:59Sen. Moreno: They are a huge natural source in this country. It was like hearing we have the port of cleveland. Can you talk about how we can make certain we revitalize the great lakes and the shipping industry? >> thank you, senator. As I said in my opening, the great lakes region is special to me because it is where I grew up.
▶ 1:20:25Sen. Moreno: It is where I watch to the deindustrialization of that part of the country. We just have to be aware that everything we do at the fomc in terms of rules and regulations not only helps international carriers, but, it also focuses on what is happening around the
▶ 1:20:55Sen. Moreno: Great lakes. >> the port of miami, for example. You have these monstrosities, giant cruise ships. You won't get a lot of investor capacity there, nor will it be logistically feasible. In places like cleveland it is easier to feed our industrial base. I just want to make sure we don't have a florida centric, southern centric view of this and understand how critical the great lakes are.
▶ 1:21:23Sen. Moreno: I wanted to have a special place in your heart, mind, and park it looks so we are looking at the great lakes, refurbishing them. >> I would take the same approach we did at the state level when thinking about where the export needs are. And perhaps, ways we could potentially help.
▶ 1:21:54Sen. Moreno: Where are the bottlenecks in the system? Where is the regulation? Where are regulations with canada trying to enhance the capabilities in and around that region that would utilize the resources and infrastructure there in order to export and also import? There is a lot of that that comes in and out that is important to middle america. It is really examining the supply chain.
▶ 1:22:23Sen. Moreno: Once again, what is it dominating from import and export activity? How will -- how can we help? >> Sen. rosen:.
▶ 1:22:43Sen. Rosen: I appreciate the 10,000 lakes in minnesota and all other lakes. I don't have shipping likes but I have really good lakes in lake tahoe and lake mead. I wanted to give them a shout out. There are good lakes all around our country. Thank you to the witnesses for being here. Thank you, Mr. chairman, for this hearing. I will talk about something we all care about every day when we wake up.
▶ 1:23:09Sen. Rosen: The first thing you think about after coffee is, what is the weather going to be today? How will I get to work? Over the last several years we have seen economic institutions, I've companies incorporate machine learning and artificial intelligence into their weather and ocean forecasting products. The debtor to research institute in nevada is improving wildfire smoke emissions using machine learning. Dr.
▶ 1:23:36Sen. Rosen: Petty, what roles do you see machine learning or artificial intelligence playing in national -- natural disaster and climate forecasting models and, at overarching mission of noaa?
▶ 1:24:06Sen. Rosen: >> we need to move towards expansion in that capability of technology. We only need to look at the past history on the science to feed into these models and the technology for machine learning and artificial intelligence.
▶ 1:24:23Sen. Rosen: Great. We know the advancements will continue to be critical. That is why I introduced smart weather forecasting to carry out pilot projects for seasonal forecasting, particularly for water management, a huge issue in our country. Dr. petty, if confirmed, would you advocate for noaa to expand subsidies on seasonal forecasting?
▶ 1:24:53Dr. Petty: I look forward to getting to the building to look at the priorities. I can confidently say that will be high priority just listening to the hearing Dr. jacobs had with you about a month and a half ago.
▶ 1:25:11Sen. Rosen: We welcome you to our office to continue the conversation. Pro wrestling noah regional climate centers are essential to support decision-makers as they.
▶ 1:25:32Sen. Rosen: In nevada we are thankful for our own desert research institute which serves as one of six regional climate centers nationally. Dr. petty, if confirmed, will you commit to serving each of our regional climate centers?
▶ 1:25:47Dr. Petty: Senator, I am familiar with the center in your great state. I am looking forward to getting to the office and getting a complete review from the national weather service and their team so we can look at the priorities, implementing new technologies, and the big part, the collaboration, making sure the transparency is getting to all the different communities that have to deal directly with weather.
▶ 1:26:13Sen. Rounds: And I will stay on this. Even though we have lakes and rivers, we are a landlocked state. We often experience severe weather events that originate in the coastal areas of the pacific, california, oregon, washington. What do you see as challenges coastal and marine ecosystems are facing during extreme weather events. And the regional climate centers. How do you think they may manage going forward?
▶ 1:26:46Sen. Rounds: How might we predict and mitigate some of the impact? >> senator, right off the bat of the estuaries, the ecosystems that are not only coastal, but inland, all those play off of each other, and the importance is making sure there is transparency and collaboration, not only with the federal government, with the state government, and more so, with my experience, all of the agencies
▶ 1:27:17Sen. Rounds: Are working together. Interior. Army corps of engineers. Department of energy. As well as commerce. They are all on the same page working together. >> I am very pleased to hear you are interested in collaborating with everyone. Over 15% of the pro wrestling noah -- of the noaa workforce has been cut.
▶ 1:27:52Sen. Rounds: How will you ensure you have enough staff to accurately communicate and predict weather information and do the research we are -- rely on for so many sectors like agriculture and transportation.
▶ 1:28:09Dr. Petty: Fully realizing all agencies that utilize the noaa weather service it's a priority and making sure that the research is focused and responsive and looking at public need. That is my commitment to you. That is what we will work on with this staff within noaa.
▶ 1:28:35Sen. Rosen: Thank you. I appreciate it.
▶ 1:28:44Sen. Cruz: Mr. carmel, our country is just now waking up to an important situation we put ourselves in regarding our capacity to build and operate ships here in america.
▶ 1:29:03Sen. Cruz: As a merchant marine academy graduate, one of the youngest captains of a commercial ship in recent history and a senior executive in one of the world's largest shipping lines, you have unique experience and a perspective you can bring to the president has made a building ships in america a priority and I am glad he has.
▶ 1:29:34Sen. Cruz: I had bipartisan legislation with senator mark kelly on what is known as the ships for america act that would set the conditions for restoring american dominance. Would you please give you -- give me your assessment, Mr.
▶ 1:29:49Caramel -- Mr. Carmel: On the set of commercial shipping and shipbuilding in america and how the president strapped -- p president's plan will get us on the right track.
▶ 1:30:06Mr. Carmel: The state of our shipbuilding industry, starting with shipping is basically on a lifeline. We don't carry our own commerce, flat out. We need to find a way to get back there. To me that is extremely important. In terms of shipbuilding, our shipbuilding industry is very narrowly focused on a very niche market.
▶ 1:30:31Mr. Carmel: We are not even comparable to international scale shipbuilding. I know the ship act says we can't build ships at scale. I would say that for ships that matter to international trade, we can't build them at all. That capacity does not exist here. We need to bring it back. The ships act is a great thing because it addresses the pillars we need to do that.
▶ 1:30:57Mr. Carmel: The executive order gave us a vision of what needs to be done and the ships act gives us the levers and resources to do it. That is what is important. One of the reasons we failed over the years is instability. The ships act gives us that too. >> thanks. The numbers are disturbing. China has roughly 5500 ships that can operate in ocean level shipping.
▶ 1:31:26Mr. Carmel: We have much less than that, 80, roughly. And we have the capacity to build only five per year. We need to up our game with the ships act to help us build 250 over the next 10 years. If you are confirmed, and I think you will be, you will play a key role in implementing the president's agenda, which you referenced.
▶ 1:31:51Mr. Carmel: For myriad -- what are the key parts of the agenda necessary to restore shipbuilding capacity? Can you speak to how that ships act might fit into the picture? >> one is the financial framework structure good we need a financial structure.
▶ 1:32:22Mr. Carmel: We need to come up with a better way of finding something for ships to do. This ships act addresses all those things. The ships act has areas that overlap with workers on the waterfront, waterfront workers. There are areas where those things can work together. Innovation is key.
▶ 1:32:49Mr. Carmel: Those are just a few of the things that marad has a handle on that can implement the ships act. >> what will happen if we don't pass the ships act? I suspect you will be confirmed. Will you still be able to implement the president's vision effectively?
▶ 1:33:17Mr. Carmel: Of the ships act is critical to being able to do it effectively and quickly. If the ships act is not passed we will still work on that agenda and do what we can. To implement the vision. But, it will go a lot slower. It won't be as robust. Most importantly. It will be fragile. We run the risk of doing what we have done in the past, start down the path and then the whole thing falls apart.
▶ 1:33:46Mr. Carmel: We need a way to make things permanent, so it is codified through a cycle. >> thank you Mr. caramel.
▶ 1:34:00Sen. Klobuchar: Thank you, Mr. chair. Congratulations to all of you. You were tasked with strengthening our maritime industry, ensuring the U.S. maintains a brazilian supply chain, protecting our water resources. Of course that includes the great lakes. That's a lot on your shoulders. In 2022 senator thune and I passed the ocean shipping reform act.
▶ 1:34:26Sen. Klobuchar: It's during send of ocean shipping, proved supply chain efficiency and brought meaningful results in terms of getting lower rates because we leveraged the power of that agency. The law basically tells foreign owned shipping alliances to do three things to earn fair rates, stop profiting off our backs and fill empty crates with american-made products.
▶ 1:34:55Sen. Klobuchar: After we passed it, shipping rates fell 85% of that year. There were a number of factors. But we were clearly serious when we passed the bill that we were going to go farther if it did not get done. So I will start with you Ms. di bella and Mr. harvey.
▶ 1:35:28Sen. Klobuchar: Will you commit to enforcing the ocean reform act?
▶ 1:35:31Ms.Dibella: Yes I well.
▶ 1:35:38Mr. Harvey: Yes. Enforcement is critical.
▶ 1:35:46Sen. Klobuchar: The great lakes st. Lawrence seaway system moves over 200 tons of cargo each year. The great lakes shipping industry supports tens of thousands of jobs directly and is a vital economic engine for cities, towns, and people in the region. How will you make sure the fmc supports the needs of inland seas, not just those on the coast?
▶ 1:36:13Mr. Harvey: Thank you for that question. We will continue to do investigations like we have done in canada. And to make sure american shippers and lakers -- I think the fmc has been able to carve out some exemptions for some of that. The battle goes on.
▶ 1:36:38Sen. Klobuchar: I will turn to you, Mr. carmel. I will note the duluth board. An incredible place.
▶ 1:36:51Mr. Harvey: I have been to duluth.
▶ 1:36:55Sen. Klobuchar: Was it warm.
▶ 1:36:57Mr. Harvey: No.
▶ 1:37:01Sen. Klobuchar: It is an incredible place, duluth. They are working very hard on the things necessary to keep the great lakes shipping lane strong and open. When shippers are delayed by port congestion, inland freight bottlenecks, outdated infrastructure, products don't arrive on time and businesses suffer. Will you work to strengthen maritime and multimodal supply chain and efficiency?
▶ 1:37:33Mr. Carmel: One of the problems we had during the supply chain crisis was search and stop. We need to stable, predictable demand. We need to be able to manage flows through our ports so we don't have too much stuff trying to go through at one time and not enough stuff going at others. That is across a number of activities.
▶ 1:38:04Mr. Carmel: Certainly, I think we can use information better.
▶ 1:38:10Sen. Klobuchar: Very good, thank you. Mr. petty, how do you plan to recruit qualified employees? I will ask two separate questions because my time is running out. Could you look into the minnesota grant that is a research and education program towards fisheries, towards, I mentioned, the great lakes.
▶ 1:38:36Sen. Klobuchar: And we also have 15,000 lakes and just 10,000 lakes on our license places.
▶ 1:38:47Mr. Petty: Lots of good questions. I look forward to getting into the department and continue to look at that. I know specifically there are priority areas.
▶ 1:39:01Mr. Petty: That partnership and collaboration can take place when institutions and researchers play a vital part within noaa and I look forward to working with you to continue that collaboration.
▶ 1:39:18Mr. Petty: With other areas of the national weather service, the importance of staff, it gets back to making sure that priorities with what the mission calls for, its health and safety and resources, we are delivering the technical and the advanced science so decisions can be made by multiple agencies and states and resources.
▶ 1:39:42Mr. Petty: >> and, if you could look into the great lakes restorative initiative in representative stoppard's district. Lake superior, surrounding things have always been bipartisan. We heard from great lakes senators. Please, keep that going strong. >> thank you, senator, I certainly will.
▶ 1:40:14Mr. Petty: >> we have a little friendly competition with my friend from minnesota. She talks about minnesota's 10,000 lakes. I like to remind people we have over 3 million.
▶ 1:40:32Sen. Klobuchar: But most of them are constantly frozen. >> that's true. 3 million lakes. Remember that. Maybe we will put that on our license plate too someday. I want to thank everybody because these are really important positions. I want to begin by covering an executive order president trump issued on day one of his administration called unleashing alaska's extraordinary resource potential.
▶ 1:41:03Sen. Klobuchar: It's very long. There is the president's signature. We are the only state in the union that has our own executive order, this administration. This says it is the policy of the united states to fully avail itself of alaska's vast lands and resources for the benefit of the nation and the american citizens that call alaska home.
▶ 1:41:29Sen. Klobuchar: I want to get to all the witnesses, a commitment that, if confirmed, you will come to alaska soon to see these extraordinary resource potentials. You can come in the winter, when it's cold, or the summer and do some fishing. But can I get your commitment?
▶ 1:41:50Mr. Carmel: I look forward to going back to alaska.
▶ 1:41:57Ms.Dibella: I echo that. I have been there once on a brief layover and I would like to be there for longer.
▶ 1:42:07Dr. Harvey: I have been to alaska fishing with my wife and other great areas of your state. >> you are a you af grad, may be the first to hold this position, so we are excited for you to get back to alaska.
▶ 1:42:25Dr. Harvey: One of the elements of this executive order, and you are already hearing it a lot, is the direction of federal agencies to streamline permitting and approval of critical infrastructure projects in alaska. Yet, we continue to see lengthy and unnecessary delays.
▶ 1:42:45Dr. Harvey: Let me give you one that is kind of wrapup -- a marad grant for a port, starting to work to reopen this military base on the aleutian island change, very strategic and also important for fisheries. This grant has been stalled for months to complete the biological opinion.
▶ 1:43:16Dr. Harvey: Normal consultations began in june. But we did not consider the application until late july. It has since reassigned staff to start all over again. It told people that maybe they will get it out by december. Maybe it will slip into next year because the federal register timing. My view is that this is classic deep state.
▶ 1:43:44Dr. Harvey: I like all my constituents but a lot of federal employees would love to slow rolled everything in alaska. The president of the united states set, enough. We are done doing that in alaska especially. I need your commitment to give nmfs a kick in the behind saying we are to doing this anymore.
▶ 1:44:18Dr. Harvey: The biden days of delaying projects in alaska because environmental groups wanted that are over. Can you commit to me a culture of accountability in terms of permitting offices throughout noaa if confirmed. >> yes, sir. >> we aren't doing seven or eight year permanent anymore. It is ridiculous. It is killing the country and it particularly kills my state.
▶ 1:44:46Dr. Harvey: That is why the president, day one said, we are done trying to crush alaska. We need the leadership. I appreciate that. Let me turn to another executive order from the trump administration, restoring american seafood competitiveness. I think secretary lutnick is off to a great start. We had the seafood roundtable we talked about recently with all the congressional delegation.
▶ 1:45:16Dr. Harvey: We have administrator jacobs. My state is the superpower of seafood. Over two thirds of all seafood harvested in america for subsistence, sport, and commercial comes from alaska. Almost 2 billion of that is exported. Almost 16 billion is from the seafood industry. 1.6 million jobs nationwide.
▶ 1:45:51Dr. Harvey: But, you have heard from senator cantwell, unlike a lot of industries in america, all these computer chips companies get a quarter of a trillion dollars in subsidies. Our industry needs two things from the federal government. Surveys and timely promulgation of regulations. That is it. That's under eu. The surveys have not been going well.
▶ 1:46:18Dr. Harvey: Can I get your commitment to get us back to the gold standard of serious surveys in a way in which it is prioritized and a way in which it is promoted in the president's executive order on seafood competitiveness in addition to his executive order on alaska? Mr. harvey I know you have that executive order memorized. >> and I want you to have it memorized.
▶ 1:46:50Mr. Harvey: I look forward to working with you and your outstanding staff, who have incredible knowledge. >> let me get to one final one and then I will turn it over to senator peters. Dr. carmel, you and I are meeting later today in my office and I am looking forward to that. I have a bunch of questions for you and others. It goes to noaa's budget. That we need to get out here soon.
▶ 1:47:16Mr. Harvey: The spend plan includes, my understanding, is to approve noaa and omb fishery disaster declarations for the 2022 yukon salmon, 2021 upper cook in lent and 2022 salmon.
▶ 1:47:41Mr. Harvey: Can you ensure me your first order of business will be the approval of these disaster funds and recovery resources necessary? >> senator, I look forward to getting into the building and doing just that. Already confirming Dr. jacobs today, I'm hearing it loud and clear. I am looking forward to working with you to move the areas you highlighted forward, whether it is research gaps and even surveys.
▶ 1:48:14Mr. Harvey: >> we will do a lot together, as we talked about in my office yesterday on the salmon challenges we have. Some salmon runs in alaska are doing great. Sockeye salmon runs in bristol bay. Some are doing horrible. King run on the yukon is very important to my constituents. Our legislation addresses this. We have huge research gaps we need to figure out and address. I appreciate your commitment to that.
▶ 1:48:43Mr. Harvey: I will have more questions for the record. For the other witnesses, thank you. Now I will turn the entire hearing over to my democratic colleagues. I hope they don't undertake some kind of to on the commerce committee.
▶ 1:49:04Sen. Markey: Where is that gavel , do you want to bring it here? He + Sen. peters: trust us. Welcome, each of you. Congratulations on your nominations.
▶ 1:49:23Sen. Markey: I want to start with a topic I raised ensuring both robust investment in our core infrastructure and the fair distribution across the country. As I am sure you know, marad reported structure development programs that supports development of safety and efficiency and reliability of our nation's ports.
▶ 1:49:53Sen. Markey: Investment is central to ensuring our manufacturers stay competitive and goods are reliably delivered to consumers. Across the midwest and across the nation. Program funding that has gone to our great lakes ports has provided a major boost, but that funding has been hard to come by. With great lakes supports receiving as little as 2% of the funds in the past years.
▶ 1:50:20Sen. Markey: As a matter of fact, the golf ports have not gotten a fair shake either. It is not just the great lakes. That is why it might legislation to fix this funding disparity is cosponsored by senator wicker and senator cornyn and my fellow great lakes colleagues duckworth and marino. The funding disparity is simply unacceptable.
▶ 1:50:46Sen. Markey: When I raised this issue with secretary duffy, to his credit, he fully agreed it is unacceptable and he committed to working with me to ensure a robust, fair funding for great lakes ports going forward. Mr. carmel is confirmed for you support robust funding for the ports through the port infrastructure development program?
▶ 1:51:09Mr. Carmel: If I am given the honor of being confirmed I look forward to working with you to advance that, yes.
▶ 1:51:16Sen. Peters: Do you work to ensure funding is distributed fairly so our great lakes as well as the gulf coast ports are not left at a competitive disadvantage. And will you commit to the wording of those grants so critical ongoing assessments can proceed.
▶ 1:51:39Mr. Carmel: I would commit to working with you to ensure it is administered fairly and effectively. I have been in and out of great lakes ports most of my sailing career and I understand deeply the importance of great lakes ports to the land manufacturing.
▶ 1:52:08Sen. Peters: Especially overtaxed parts on the east coast can create opportunities for further efficient movement of goods. Mr. petty, my next question is for you. Harmful balloons pause -- pose a serious risk to water quality, tourism, and health in the great lakes.
▶ 1:52:30Sen. Peters: To give you a sense of how devastating these outbreaks can be, a toxic algae bloom in lake erie left residence in toledo without safe drinking water for three full days recently. Noaa's research and forecasting capabilities are absolutely essential for early detection, for mitigation strategies, and long-term solutions which will protect our communities as well as our ecosystems from future outbreaks.
▶ 1:52:59Sen. Peters: However, despite, once again, unwavering bipartisan support for these activities in congress, this administration has sought aristocrats -- drastic cuts to noaa that would jeopardize this critical mission. Mr.
▶ 1:53:15Sen. Peters: Petty, if confirmed by how will you ensure noaa can support and meet the needs for harmful algae bloom detection and forecasting to ensure safe, clean water for great lakes communities, agriculture, and industry? As you know, millions and millions of people rely every day on water from the great lakes to drink.
▶ 1:53:37Sen. Peters: And as part of your answer, can you speak to the importance of having sufficient staff and funding at noaa to be able to carry out these important activities?
▶ 1:53:48Mr. Petty: Thank you for that question. This is an issue that needs to be fully addressed. A commitment I will make, for sure, is we are getting the best available science for those areas to address these issues. It's not only the great lakes, its multiple areas up and down our coastal states.
▶ 1:54:11Mr. Petty: As well as the relationships we have with other agencies that also get resourcing and funding specifically. That is the area of priority. Making sure all of the different agencies, army corps, interior have the resources they need to address habs issues.
▶ 1:54:34Sen. Peters: So if there are shortfalls you will be an aggressive advocate to make sure you have the resources and the people?
▶ 1:54:40Mr. Petty: Yes. I am looking forward to getting into the building and making sure we have all the critical staff to meet the mission you have set forth.
▶ 1:54:52Sen. Peters: Very good. Now I turn the floor over to senator markey who will also have exclusive control of the gavel at this point.
▶ 1:55:03Sen. Markey: I hope you packed a lunch. Thank you, senator peters. Seaport projects create good paying union jobs for americans and develop infrastructure that lasts decades. The projects take years of expensive planning but bring huge economic benefits to both blue and red states.
▶ 1:55:26Sen. Markey: If confirmed, you would be in charge of the port infrastructure development program, an incredibly important program that delivers major support for ports to keep our nation running. In august of this year, the trump administration arbitrarily canceled millions of dollars of grants under this program, pulling the rug out from port projects that were construction ready.
▶ 1:55:55Sen. Markey: Now ports across america can't trust the federal government to support port projects based on their merits because they are getting canceled based on politics. Do you believe arbitrary and sudden cancellations of the port infrastructure development grants decreased trust between ports and ma?
▶ 1:56:17Mr. Carmel: Thank you, senator. I'm not familiar with the situation you are talking about. I am not familiar at all with the ptsd -- pdfd program other that I know it exists. I would need to get in the building. I can commit to working with you to sort things out. But as a general rule, stability is important.
▶ 1:56:48Sen. Markey: We agree with that. Right now our ports can no longer trust this administration to keep its word and protect workers or investment staff's ability. It just does not exist. It is a highly unstable environment.
▶ 1:57:11Sen. Markey: Do you believe it is appropriate for the administration to kill american maritime at construction jobs by canceling grants for political reasons. >> I would need to actually get into the building and set with the maritime administration staff to give you an answer.
▶ 1:57:35Sen. Markey: I don't think it is appropriate. I don't think the 800 union workers in massachusetts who are not getting a paycheck thanks to the trump administration think it is appropriate either. It is arbitrary, capricious, and political. That is what is happening. If confirmed, would you work to restore port infrastructure development program grants that were canceled despite the facts the projects met all the terms of their grant agreements?
▶ 1:58:07Mr. Carmel: Thank you, sir. Again, if given the honor of confirmation I can commit to trying to understand the situation. I was not there. I do not understand what happened. Without the facts, I am not in a position to give any answer other than saying I will commit to learning about it.
▶ 1:58:30Sen. Markey: If we play politics with nonpartisan port infrastructure grants it sets a terrible but powerful precedent for administrations to come, that they can just move in politically and kill projects because they come under the control of democratic states. Or, in the future, republican states. That's a terrible precedent to be set. In the first 10 months of the trump administration.
▶ 1:58:57Sen. Markey: This makes it very difficult work on a bipartisan basis in congress to support these agencies. Because, you are not sure that what do you reach as an agreement will, in fact, be upheld or agreed to. A great humorist had a joke that covered this subject. That covers the era in which we are now working.
▶ 1:59:28Sen. Markey: He would say, we will double cross that bridge when we get to it. You reach an agreement and think everything is great and, down the line on a partisan basis, democratic projects get cut and republicans do not and that just makes it harder and harder for all of us to operate in a world where you get the benefit of the bargain. You gave, and in return you got.
▶ 1:59:57Sen. Markey: And that whole era is now increasingly being viewed in the rearview mirror. Because, these are not hypothetical questions. These attacks already happened, taking paychecks out of workers pockets and taking investment out of communities. It is just unacceptable. The trump administration is punishing communities just because say did not vote for him. In 2024.
▶ 2:00:28Sen. Markey: That is absolutely a disruption of the bipartisan construct of the united states congress. The trump administration has told the country we are experiencing an energy emergency. Yet, the administration is trying to kill offshore wind projects, destroying union jobs, and keep megawatts of clean power off the grid.
▶ 2:00:57Sen. Markey: Do you believe the offshore wind industry can contribute to the developments of american ports, american shipping, create more american jobs and also create more of megawatts for other grids?
▶ 2:01:09Mr. Carmel: I was not involved in any of those discussions. Energy policy is outside my area of expertise so I would need to get in the building to understand the issues and where marad intersects with them. >> you don't have to go into the building to know electricity prices have gone up 10% since donald trump was sworn in this year. 10%. That's on the front page of newspapers across the country.
▶ 2:01:44Mr. Carmel: Do you agree it is not in the national interest to raise energy -- rage and -- raise energy prices for households in the U.S.?
▶ 2:01:54Mr. Carmel: Energy policy in general is not my strong point so I'm not qualified to answer.
▶ 2:02:01Sen. Markey: Well, ultimately, all these tools -- coastal decisions will have an incredible impact on the electricity grid cell families in our country. It is now increasing, tripling the rate of inflation and a lot of it is due to the energy policy of the trump administration.
▶ 2:02:24Sen. Markey: Cancellation of offshore wind projects and the ripple effect that has on electricity rates for everybody else within those communities that have now been denied extra megawatts. They just don't exist. In addition to the trump administration's attacks on american made wind industry, another driver of rising costs is the surge in fossil fuel exports.
▶ 2:02:54Sen. Markey: As administrator of marad you would be directly responsible for making sure deepwater export terminals do not receive permits if they are not in the national interest or are not consistent with national policy goals and objectives including national security, energy sufficiency domestically and environmental quality domestically.
▶ 2:03:19Sen. Markey: Can you -- as you review these export terminal permits, prioritize lower cost and environmental protection over higher profits for oil and gas companies. I urge you to do that. It is an important part of your responsibility. Now, we are exporting upwards of 15% of all of our natural gas overseas. Companies get a bigger price for it when it hits the open market.
▶ 2:03:52Sen. Markey: They can get it in a ship and get it out but it has a dramatic impact on the price of natural gas here. The remaining natural gas becomes much more expensive because you have reduced it by 15%. Then that impacts small businesses and consumers across the nation. Dr. petty, two questions.
▶ 2:04:17Sen. Markey: Because of doge and trump we are losing invaluable research and fisheries expertise. Do you agree to support the northeast fisheries science center and the important work it does if you are confirmed?
▶ 2:04:36Dr. Petty: Senator, thank you. That is an important question version does question. We have great staff doing amazing work in their jobs up there. My priority is making sure they continue to do their work and if they are doing it with all the resources they have available to them.
▶ 2:05:02Dr. Petty: >> do you agree it is critical to protect noaa scientists so they can continue their work on fisheries issues?
▶ 2:05:13Dr. Patty: I take seriously the scientific integrity of making sure we are providing the best available science and scientists have other resources to make sure they get their work done that congress has given them a direct mission to do.
▶ 2:05:29Sen. Markey: I invite you to come visit important noaa facilities if you are confirmed.
▶ 2:05:37Dr. Patty: Thank you, senator, I appreciate that.
▶ 2:05:41Sen. Markey: So, my final question is for all nominees. If confirmed, do you pledge to work cooperatively with this committee to provide thorough and timely responses to committee requests and appear before the committee when requested?
▶ 2:06:09Mr. Carmel: Yes, I do.
▶ 2:06:11Ms.Dibella: You have my word. Dr. petty yes, senator.
▶ 2:06:15Dr. Harvey: Yes, sir.
▶ 2:06:20Sen. Markey: I have several letters supporting the nominations and I ask unanimous consent to have those letters inserted into the record. Without objection, so ordered.
▶ 2:06:37Sen. Markey: The close of business -- senators have until the close of business october 24 to submit record -- questions for the record and nominees have until the close of business october 27 to respond to the questions that will be given to you. That concludes today's hearing. With data, the committee stands adjourned.