Question. What were the costs to assess, study and close-out the 6,663 sites which required no remedial action? Answer. The total costs incurred in conducting PAs, SIs and RI/ FSs at sites which have been closed out without any remedial action is estimated to be $138 million. Question. Does DoD really believe that it can complete the Installation Restoration Program by the year 2011 at a cost of $24.5 billion? Is it true that you paid a contractor $232,000 for this estimate, and then placed restrictions on the contractor so as not to predict a true estimate? Answer. We believe that the $24.5 billion figure and 20 year program timeframe are reasonable and are our best projection at this time. Although the cost estimate report was prepared by a contractor, my office and the DoD components were heavily involved in developing the estimate. All assumptions were derived by consensus; we did not in any way pre-determine the final cost figure. The estimate was intended to be a long-range planning tool, not a programming or budgeting document. Question. Has thought been given to establishing a multi-year account to fund DERP since most money is transferred to Services' O&M accounts (one-year) when more time may be needed and O&M is scored at a high outlay rate? Answer. The Defense Environmental Restoration Program is currently funded with "no year" money from the Environmental Restoration, Defense appropriation. Additional flexibility in funding authority has not been needed. NATIONAL DEFENSE STOCKPILE TRANSFER Question. The fiscal year 1993 budget proposes to transfer $612 million to the Environmental Restoration, Defense appropriation. From where will these funds be transferred? Answer. The National Defense Stockpile Transaction Fund. Question. By what mechanism will these funds be transferred? Answer. Approval has been requested in the Appropriations and Authorization Acts. Question. Has legislation been submitted to effect such a transfer. If so, to whom and when? Answer. Yes. In the normal DoD legislative proposals associated with the Appropriation and Authorization Act. Question. Provide detailed information for the record on this $612 million transfer. Answer. The detail is specified in Section 8055 of the President's Budget and corresponding language submitted for the Authorization Act. Question. A new general provision (Section 8055) has been proposed which would: (1) provide the Department with authority to sell not to exceed $1 billion of material from the Stockpile in each fiscal year starting with FY 93; (2) provide the Department with authority to transfer the receipt from the sales to any appropriation to remain available for the same time and purpose as the appropriation to which transferred; (3) provide the Secretary of Defense the authority to impose a moratorium on the acquisition of new material; and (4) require that none of the unobligated balances may be obligated or expended to finance any grant or contract to conduct research, development, test, and evaluation activities or develop or produce advanced materials, except as provided in advance in an appropriations act. How does Section 8055 interact with the transfer of $612 million? Answer. The source (NDS) and authority for the transfer is documented in Section 8055. The $1 billion disposal authority requested is for sales and corresponds to the $612 million in actual cash that will be available for transfer during the fiscal year. Question. What is the purpose behind this legislation? Answer. The legislation seeks to reduce the unneccesary inventory in the National Defense Stockpile and to apply proceeds from the sale of this material support other DoD requirements. Question. Explain the Department's strategy for the National Defense Stockpile. Answer. The Department's strategy for the National Defense Stockpile (NDS) is to recommend to the Congress enactment of legislation that would authorize disposal of the almost $7 billion in inventories that are excess to requirements according to our 1992 NDS Requirements Report which we submitted to Congress. In addition, because it is highly likely that NDS requirements will decline further next year because of a continued reduction in national security threats related to the breakup of the Soviet Union, we are recommending a moratorium on NDS acquisitions until next year's NDS Requirement report is issued and reviewed by the Congress. Finally, as part of the Department's proposed National Defense Authorization bill, we have recommended reform and streamlining of the Strategic and Critical Materials Stock Piling Act, including elimination of the statutorily-mandated three year war scenario for NDS requirements planning. Question. Provide for the record a justification to support each of these points. Explain how the Department will determine the appropriation(s) which will receive the receipts from sales. Answer. The appropriations receiving receipts from sales will be determined in the budget process based upon the situation and requirements at that time. Authority for the transfer will be requested in the President's Budget for Congressional approval. Question. Has legislation been submitted to the appropriate committees to effect these changes; or does the Department believe that this general provision is all that is required? Answer. Appropriation and Authorization language has been proposed to allow the transfer of NDS funds. Additional legislation has been included in the DoD proposed amendments to the Strategic and Critical Stockpiling Act. [CLERK'S NOTE.-End of questions submitted for the record.] THURSDAY, APRIL 30, 1992. TESTIMONY OF MEMBERS OF CONGRESS AND OTHER INTERESTED INDIVIDUALS AND ORGANIZATIONS SEMICONDUCTOR MANUFACTURING TECHNOLOGY WITNESS HON. J.J. PICKLE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS INTRODUCTION Mr. MURTHA. The Committee will come to order. Today we will hear testimony of public witnesses and several members of Congress will also testify. We appreciate all of you coming today. Our first witness today is the Honorable Jake Pickle. I want to welcome the distinguished Member from Texas who is a dynamic, enthusiastic, influential Member who protects all of Texas, and not only works for his district, but the entire State of Texas. We are limiting everyone to five minutes today. Mr. Pickle. STATEMENT OF CONGRESSMAN PICKLE Mr. PICKLE. You are very generous. After that very complimentary introduction, I would like to have 10 minutes to respond, but I want to comply with your rules. I am very pleased that the Committee would invite me to testify this morning. I am here on behalf of SEMATECH and the appropriations for this coming year. Mr. Chairman, I am here to request a $100 million appropriation for SEMATECH in 1993. That is the same amount we have had for the last five years. SEMATECH members have already pledged their $100 million for the next five years. They have enjoyed that relationship with the DARPA defense agencies for the last five years. We are asking for the same amount. The President's budget was $80 million. We feel strongly that that ought to be raised to $100 million and I am encouraged by responses we have received from various Members of the Congress in furtherance of full funding for 1993. This organization, SEMATECH, was established in 1987. It is a government industry cooperative effort. I have two summations: SEMATECH has been successful in its primary mission over the past five years. That is, to help the semiconductor equipment manufacturing industry. (457) Secondly, SEMATECH has been successful. There is a continued need for government to join with industry to help semiconductor technology. For example, one, the VLSI Research Company of San Jose, California, which is a leading world market analyst, said that the world market share of American semiconductor equipment industry has increased by nearly three percent this last year. Its report says that development has occurred as a noteworthy milestone for SEMATECH which has been working closely with all these companies to improve American manufacturing. That is a world research organization who made the survey saying for the first time in 20 years our semiconductor equipment has been going down. Now it has made a turn and is going up and credit for that goes to SEMATECH. For example, Motorola in Austin has just built a new $650 million MOS laboratory. When they started out, it was estimated they were going to have to buy approximately 75 percent foreign equipment in order to build that $650 million plant. With the help of SEMATECH, they reversed that percentage so that they ended up buying 80 percent of that equipment from American companies rather than foreign companies-concrete evidence that the effectiveness of the organization has been helpful to them. The National Semiconductor Corporation recently opened a chip fabrication market that would be the one piece of Japanese equipment, the rest all American equipment. That shows that we are doing it. Intel says improvement has led to a vast increase in domestic expenditures. For five years we have had a cooperative effort with industry and government. It has been a success. The member companies are strong for renewal. They are willing to commit their $100 million a year in cooperation with the government. They have found successes. The big companies and the little companies are working together. That is tremendously important, Mr. Chairman, because for the first time we have seen the little companies can honestly discuss and have communication with the big companies. The lions and the lambs haven't laid down together yet, but they are talking. This government must have some kind of a cooperative effort. Government has to have joint ventures, has to be a partner with high tech. That is about the only program that has that full cooperation. It should be expanded in every way possible. Mr. MURTHA. Let me interrupt and say if it were not for youand this Committee has discussed that at great length-this program would not have been funded. We are pleased to hear the results have been so favorable. We will do everything we can to continue the appropriation at $100 million. Thank you very much, Jake. Mr. PICKLE. I have high hopes for your generosity. [The statement of Mr. Pickle follows:] TESTIMONY OF CONGRESSMAN JAKE PICKLE SUBCOMMITTEE ON DEFENSE APPROPRIATIONS I am pleased to appear before this Subcommittee and its distinguished Chairman today in support of SEMATECH, a program which has been a successful example of government-industry collaboration not just to protect a crucial part of our defense industrial base, but also to save and help create American jobs. SEMATECH was formed in 1987 by 14 American semiconductor and computer firms and the Defense Department to ensure that the United States would not become dependent on foreign sources of supply for semiconductor chips, an indispensable component to many of our weapons systems. Today every major weapons system, from F-18 fighters to Tomahawk cruise missiles to military communications systems to weapons guidance systems, uses technology which has been benefitted from SEMATECH. Industry has provided $100 million in each of the last five years for SEMATECH, money that has been matched by $100 million each year from the Defense Advanced Research Projects Agency (DARPA). It is fair to say that there was another reason that SEMATECH was founded: to bring government resources to bear on a sector of our economy which is vital to our economic well-being. SEMATECH was envisioned as a bold experiment in cooperation between government and industry, and was given a five year charter to produce results. While SEMATECH has indeed produced results, the consortium has also come to understand that the challenges facing the U.S. semiconductor industry cannot be met in the relatively short time horizon of five years. For that reason, SEMATECH is seeking funding beyond its initial five year charter. I believe there is bipartisan support for continued support for SEMATECH: the President's budget includes $80 million for SEMATECH for FY 1993 and there has been consistent and vocal support for SEMATECH from Democrats and Republicans in Congress. I am here today to ask for continued support for SEMATECH from this Subcommittee and request that SEMATECH be given $100 million in appropriations this year, which is equal to what it has received in each of the last five years. SEMATECH's member companies have already pledged $100 million in industry support for next year. When evaluating the successes of SEMATECH after five years, it is important to recognize that SEMATECH was not given the overly-ambitious mission of reviving the American electronics industry. It was instead given specific goals and has been resoundingly successful in meeting them. For |