Mr. GREENWOOD. The time of the gentleman has expired. Mr. WAXMAN. But assessments required by Congress are to be completed by August 2002? Mr. GREENWOOD. The time of the gentleman has expired. The Chair would note that the mandate from Congress to do the vulnerability assessment of the chemical facilities was passed in 1999, and it was the Clinton Administration that did nothing subsequent to that. The Chair thanks the Governor for your presence with us and for your testimony and for your guidance. Mr. WAXMAN. That is a little cheap, Mr. Chairman. Mr. GREENWOOD. The Chair has the floor and the gentleman may or may not be recognized in the future. The Chair notes, Governor, that you are thanked for your service many times a day for good reason because you have given us such a sense of confidence. But I would like to take the opportunity, as your friend, to thank your wife, Michelle, to thank your daughter, Leslie, and your son, Tommy. I know that after 10 years or so in the Congress, 8 years as Governor of Pennsylvania, they were probably and you were probably expecting to take off the mantle of responsibility and hang it up in the home cabinet for awhile. And I know it is only because of the dire circumstances that we faced and your sense of duty to your country that you put that mantle-and a large mantle it isback on your broad shoulders, and we thank you for that. And we want to thank your family for the sacrifices they make every day in letting you do this job. Thank you. Thank you very much. The Chair then calls forward the second panel consisting of the Honorable Claude Allen, Deputy Secretary of the Department of Health and Human Services, as well as General John Gordon, Administrator of the National Nuclear Security Administration. Gentlemen, welcome. We thank you for being with us this morning. Thank you for your forbearance. Let me begin by saying that I believe you are aware that the committee is holding an investigative hearing and, when doing so, has had the practice of taking testimony under oath. Do either of you have any objection of giving testimony under oath? Chair then advises, under the Rules of the House and the rules of the committee, you are entitled to be advised by counsel. Do either of you care to be advised by counsel? Seeing negative responses, the Chair would ask that you rise and raise your right hand, and I will swear you in. [Witnesses sworn.] Mr. GREENWOOD. Thank you; you are under oath. And, Mr. Allen, I believe we will begin with your testimony. TESTIMONY OF HON. CLAUDE A. ALLEN, DEPUTY SECRETARY, U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES; AND JOHN A. GORDON, ADMINISTRATOR, NATIONAL NUCLEAR SECURITY ADMINISTRATION Mr. ALLEN. Thank you, Mr. Chairman, and members of the committee for the opportunity to appear before you to discuss the proposed Department of Homeland Security and how it will interface. with the Department of Health and Human Services. Secretary Thompson and I support strongly the initiative that the President announced earlier this month and feel that this is the best direction for the Nation to move in order to ensure our homeland security. The threat of terrorism has become a part of our daily lives since September 11, and this new Department of Homeland Security will enable us to make significant advances in protecting the American public from terrorism. We are pleased that the Congress is giving the President's proposal such prompt and thorough review and attention. And Secretary Thompson and I look forward to working with you to ensure the passage of this important legislation. The President's proposal will transfer several terrorism-related activities that are housed currently within HHS to the new Department of Homeland Security. Homeland security will assume responsibility also for setting goals and providing strategic direction for other relevant public health and medical activities, but will rely upon HHS to implement and operate them on a day-to-day basis. First, I want to talk with you about the activities that will go to homeland security. Those areas include the Select Agent registration enforcement program, the Office of the Assistant Secretary for Public Health Emergency Preparedness and the Strategic National Stockpile. Right now, the Centers for Disease Control and Prevention regulates the transfer of certain dangerous pathogens and toxins commonly referred to as "Select Agents" from one registered facility to another. These agents, such as the bacterium that caused anthrax, the bacterium that causes Plague, and the viruses that causes Ebola are used widely in the research laboratories across America. These Select Agents are prime examples and candidates for use by would-be bioterrorists, so when they are used in research, they must be kept under constantly safe and secure conditions. The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 authorized HHS to promulgate and to enforce regulations concerning the possession and use of Select Agents as well as their transfer. While CDC has done its best to manage the Select Agent program, CDC is a public health agency and not a regulatory body. Therefore, we believe that the new department is better suited to prevent Select Agents from falling into the wrong hands. HHS will be prepared to provide homeland security with whatever scientific expertise and other technical expertise they may need to manage the program. In fact, under the administration bill, the Secretary of Homeland Security would administer the Select Agents program in consultation with the HHS Secretary, and HHS would continue to make key medical and scientific decisions, such as which biological agents should be included in the Select Agent list. Let me talk about the Office of the Assistant Secretary for Public Health and Emergency Preparedness. The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 also created the HHS Office of the Assistant Secretary for Public Health Emergency Preparedness. The responsibilities of this new office include the supervision of the Office of Emergency Preparedness, the National Disaster Medical System and the Metropolitan Medical Response Systems, as well as related HHS emergency management functions. By having this office within the Department of Homeland Security, we will have a seamless integration of our national public health and medical emergency management assets with the Nation's new preparedness and response infrastructure. Third, the National Pharmaceutical Stockpile, which currently CDC manages: The stockpile consists of 12 "push packages" of pharmaceuticals and medical supplies and equipment which are located strategically across the United States, and additional lots of pharmaceuticals and caches of medical materiel are maintained also by manufacturers under special contractual arrangements. The Secretary and I are proud of the job that CDC has done in managing our Strategic National Stockpile, which was evidenced in our ability to get a push package into New York City on September 11. This fine work has set the stage for smooth integration of the stockpile with our other national emergency preparedness and response assets within Homeland Security. The Secretary of Homeland Security will assume responsibility for continued development, maintenance and deployment of the National Stockpile, while the HHS Secretary will continue to determine its contents. This arrangement will ensure effective blending of our public health expertise with the logistical and emergency management expertise of Homeland Security. With the strong integration and cooperation that exists between HHS and Homeland Security, two functions of the new department will be carried out by HHS unless otherwise directed by the President. The first is Homeland Security's civilian human health-related biological, biomedical and infectious disease defense research and development work. We recognize the expertise, successful track record and unique capabilities of the National Institutes of Health and the Centers for Disease Control and Prevention. The Secretary of Homeland Security, in consultation with the HHS Secretary, shall have the authority to establish the research and development program that will be implemented through HHS. This means that Homeland Security will provide strategic direction regarding the Nation's biological and biomedical countermeasure research priorities. Certain public health-related activities will also be directed by Homeland Security and carried out through HHS. This would include activities like enhancing the bioterrorism preparedness of State and local governments and non-Federal public and private health care facilities and providers. The object of this provision is to continue the important role that CDC plays, that the Health Resources and Service Administration plays and other elements of HHS play in assisting States and local governments and the hospitals and public health community in preparing for and responding to large-scale public health emergencies. As with the research program, the Secretary of Homeland Security, in consultation with HHS Secretary, will have the authority to establish the Nation's antiterrorism preparedness and response program. But the implementation of the public health components of that program will be carried out largely through HHS. Mr. Chairman, members of the committee, our Nation needs a Department of Homeland Security. The Secretary and I strongly support the President's proposal and look forward to doing whatever is necessary to effect a smooth and swift transition of responsibilities and operations. We believe that the President's proposal strikes the right balance by playing to the strength of HHS and recognizing this agency's core mission that is the protection of the Nation's public health, while capitalizing on the strategic and logistical strength of the new Homeland Security. We will ensure that HHS fulfills its obligation to the new department and provides that whatever public health, medical and scientific expertise it may require. At this time, I would be happy to answer any questions that the committee may have. [The prepared statement of Hon. Claude A. Allen follows:] PREPARED STATEMENT OF HON. CLAUDE A. ALLEN, DEPUTY SECRETARY, Thank you, Mr Chairman and members of the Committee for giving me the opportunity to appear before you today to discuss the proposed Department of Homeland Security. Secretary Thompson and I strongly support the reorganization initiative that the President announced earlier this month. The threat of terrorism in its myriad forms has become an ever-present part of our daily lives. The new Department will enable us to make further significant advances in protecting the American people from those who are bent upon inflicting death, destruction, and social disorder to achieve their ideological ends. We are pleased that the Congress is giving the President's proposal prompt and thorough attention. Secretary Thompson and I look forward to working with this and other Committees to ensure passage of the legislation for the new Department. The President's proposal deals with certain terrorism-related activities that currently are the responsibility of the Department of Health and Human Services (HHS). Some of these HHS activities would be transferred to the Department of Homeland Security (DHS). For other relevant public health and medical activities, DHS would assume responsibility for setting goals and providing strategic direction but would rely upon HHS to implement and operate the activities on a day-to-day basis. I will discuss examples from each group of activities in turn. EXAMPLES OF ACTIVITIES PROPOSED FOR TRANSFER FROM HHS TO DHS HHS functions conveyed to the new Department in the President's proposal include: The Select Agent registration enforcement program; The Office of the Assistant Secretary for Public Health Emergency Preparedness; and • The Strategic National Stockpile. Select Agent Registration Program Within HHS, the Centers for Disease Control and Prevention (CDC) currently regulates the transfer of certain dangerous pathogens and toxins-commonly referred to as "Select Agents"-from one registered facility to another. These agents are widely used in research laboratories across America. Examples are the bacterium that causes anthrax, the bacterium that causes Plague, and the virus that causes Ebola, a lethal hemorrhagic fever. Select Agents are prime candidates for use by would-be bioterrorists and thus, when used in research, must be kept constantly under safe and secure conditions. The recently enacted Public Health Security and Bioterrorism Preparedness and Response Act of 2002 authorized HHS to promulgate and enforce regulations concerning the possession and use of Select Agents, as well as their transfer. While CDC has done its best to manage the Select Agent program, CDC is a public health agency and not a regulatory body. We believe that the new department, with its strong multi-purpose security and regulatory infrastructure, will be well-suited to prevent nefarious or other irresponsible uses of Select Agents. HHS will be prepared to provide DHS with whatever scientific expertise and other technical assistance it may seek to help it manage the program. Under the Administration bill, the Secretary of Homeland Security would administer the select agents program in consultation with the HHS Secretary, and HHS would continue to make key medical and scientific decisions, such as which biological agents should be included in the select agents list. Office of the Assistant Secretary for Public Health Emergency Preparedness The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 created the HHS Office of the Assistant Secretary for Public Health Emergency Preparedness. The responsibilities of this new office include the supervision of the Office of Emergency Preparedness, the National Disaster Medical System, the Metropolitan Medical Response Systems, and related HHS emergency management functions. This cluster of activities is a logical and proper candidate for transfer to DHS thereby enabling seamless integration of national public health and medical emergency management assets with the Nation's new preparedness and response infrastructure at DHS. The Public Health Service Officers and other HHS employees who have faithfully performed disaster relief work over the years have done a wonderful service for our Nation. They are a credit to HHS as they surely will be to the new Department. National Pharmaceutical Stockpile CDC currently manages 12 "push packages" of pharmaceutical and medical supplies and equipment strategically located around the United States; additional lots of pharmaceuticals and caches of medical materiel are maintained by manufacturers under special contractual arrangements with CDC. You may recall that one of the push packages was dispatched to New York City on September 11th and that elements of the stockpile were used to respond to the anthrax attacks. The Secretary and I strongly believe that CDC has done an exemplary job managing what is now called the Strategic National Stockpile and this fine work has set the stage for integration of the Stockpile with other national emergency preparedness and response assets at DHS. The President's proposal is designed to achieve this integration by tapping the strengths of DHS and HHS in a precisely coordinated way. Thus, the Secretary of Homeland Security will assume responsibility for continued development, maintenance, and deployment of the Stockpile-making it an integral part of the larger suite of federal response assets managed by FEMA and other future DHS components-while the Secretary of Health and Human Services will continue to determine its contents. The arrangement will ensure effective blending of the public health expertise of HHS with the logistical and emergency management expertise of DHS. DHS FUNCTIONS TO BE CARRIED OUT THROUGH HHS Certain specific program level details and administrative choices are still being studied in order to ensure the most seamless transition, and to give the greatest possible levels of efficiency and effectiveness to our fight against the threat of biological warfare and to protect the public health. However, the President's proposal clearly designates the following two activity areas that the Secretary of Homeland Security will carry out through the Department of Health and Human Services: 1. Civilian Human Health-Related Biological, Biomedical and Infectious Disease Defense Research and Development The President's proposal provides that the new Department's civilian human health-related biological, biomedical, and infectious disease defense research and development work shall-unless the President otherwise directs-be carried out through HHS. Under the President's proposal, the Secretary of Homeland Security, in consultation with the Secretary of Health and Human Services, shall have the authority to establish the research and development program that will be implemented through HHS. Thus, as the agency responsible for assessing threats to the homeland, DHS, in consultation with the HHS Secretary, will provide strategic direction regarding the Nation's biological and biomedical countermeasure research priorities. 2. Certain Public Health-Related Activities The President's proposal provides that the new Department shall-unless otherwise directed by the President-carry out through HHS certain public health related activities (such as programs to enhance the bioterrorism preparedness of state and local governments and non-federal public and private health care facilities and providers). The object of this provision is to continue the important role that HHS plays |