FAST Act Reauthorization: Transportation Safety

Statement of Ronald L. Batory, Administrator

Federal Railroad Administration

U.S. Department of Transportation

Senate Committee on Commerce, Science, & Transportation

FAST Act Reauthorization: Transportation Safety

June 19, 2019

Chairman Wicker, Ranking Member Cantwell, and Members of the Committee,

Thank you for the opportunity to testify today to discuss rail safety and the Federal Railroad Administration’s (FRA) role in ensuring the safety and efficiency of our nation’s rail system.  The mission of FRA is to enable the safe, reliable, and efficient movement of people and goods for a strong America, now and in the future.  With Secretary Elaine L. Chao’s leadership, FRA executes its mission in many ways.  FRA enforces critical safety regulations and partners with industry to develop and promote both regulatory and non-regulatory solutions to safety issues.  FRA also seeks to manage federal investments in rail infrastructure in a cost-effective and efficient manner, and pursues research and development to advance innovative technologies and best practices in railroad operations and maintenance.

In recent years, we have seen great advances in railroad safety – both the train accident rate and railroad employee injury rate have declined.  Despite these advances, grade crossing and trespasser accidents remain leading causes of rail-related deaths.  And human factor and track-caused accidents continue to occur.  As the demand for both freight and passenger rail transportation in the U.S. grows, FRA, and the railroad industry, are responsible for ensuring our rail system is the safest and most efficient network this country has ever seen.

Safety is FRA’s top priority.  FRA believes safety and innovation go hand-in-hand.  From implementation of Positive Train Control (PTC) technology, to proactively addressing safety risks through our voluntary close call reporting program, to initiatives addressing the persistent challenges of grade crossing safety and the prevention of trespassers on railroad property, FRA believes both people and technology play critical roles.

FRA addresses safety risks using a risk-based, proactive approach, focusing resources on the top safety issues while continuing innovative research to further advancements in rail technology and investing in rail infrastructure.  Last week, FRA announced the selection of $326 million in grant funds under the Consolidated Rail Infrastructure and Safety Improvements grant program, with significant investments directed towards grade crossing, track, signal, and bridge improvements.

Today, I would like to highlight the top safety issues FRA is prioritizing – PTC, trespassing prevention, grade crossing safety, and FRA’s Close Call Reporting Program (commonly referred to as C³RS).

Positive Train Control

Railroads’ successful implementation of PTC remains at the top of our agenda.  As I’ve said before, implementation of PTC in rail operations represents the most fundamental change in rail safety technology in a century.  PTC uses industry-designed emerging technologies to monitor speed and automatically stop trains to prevent specific human-error accidents.  With the Secretary’s leadership, we have prioritized grant programs for PTC and helped railroads make significant progress towards full PTC implementation on the required main lines.  As of March 31, 2019, PTC systems were in operation on over 48,000 of the nearly 58,000 route miles subject to the statutory mandate – with the majority of implementation occurring in the last two years.  All 41 railroads subject to the statutory mandate complied with the December 31, 2018, requirements prescribed under the PTC Enforcement and Implementation Act of 2015.  Specifically, four host railroads fully implemented FRA-certified and interoperable PTC systems on their required mainlines by December 31, 2018, and the other 37 railroads sufficiently demonstrated they met, and in many cases exceeded, the six statutory criteria necessary to qualify for an alternative schedule and sequence to reach full implementation by December 31, 2020.

With approximately 20 months remaining until the statutory deadline, the Department and FRA will continue to provide extensive technical assistance and perform comprehensive oversight, to both host and tenant railroads, and hold each railroad accountable for the timely implementation of an interoperable PTC system on all lines subject to the statutory mandate.  Following the series of PTC symposia held throughout 2018, FRA has already held two of six collaboration sessions planned in 2019-2020.  These sessions bring together stakeholders to share best practices and jointly address key challenges.  FRA PTC field staff continue to prioritize technical assistance based on each of the 37 host railroads’ risks to full implementation, with a specific focus on testing, revenue service demonstration and interoperability. In support of our FRA PTC field staff, and to support railroads interoperability challenges, this summer FRA plans to meet with each of the 101 Class II and III tenant railroads required to implement PTC by their host railroad to offer technical assistance with respect to PTC system implementation.

Trespassing Prevention and Grade Crossing

Also at the top of FRA’s agenda is the prevention of trespassing incidents on railroad property and increasing grade crossing safety.  Trespassing on railroad property is the leading cause of all rail-related deaths in the United States.  Grade crossing incidents are the second.  Together, over the past 10 years, they have accounted for more than 95% of all rail-related fatalities.  One of my top objectives this year is to lead, promote, and strengthen efforts among all public, private, and government stakeholders to increase awareness of grade crossing safety issues and trespasser prevention strategies.

Trespassing Prevention

Last year, at Congress’s direction, FRA developed a national strategy to prevent trespassing incidents.  FRA’s strategy recognizes that trespassing is a complex problem and solutions will necessarily differ based on localized circumstances.  FRA identified the top 10 U.S. counties with the most railroad trespasser casualties in recent years.

FRA’s strategy focuses on four strategic areas: (1) data gathering and analysis; (2) community site visits; (3) funding; and (4) partnerships with affected stakeholders.  Success of our national strategy, however, depends on meaningful input and participation by all stakeholders – including State and local governments, railroads, labor organizations, and the public – as well as the availability of funding.

FRA intends to hold trespasser prevention summits in each of the top 10 counties identified.  The summits will include local community leaders, law enforcement, the railroads operating in and through the county, the public, and FRA, with the goal of identifying trespassing hotspots within the community, developing local improvement recommendations for trespass mitigation and fatality prevention, assisting with trespasser prevention outreach campaigns, and ensuring all stakeholders are equipped with the necessary information on the availability and process for applying for various forms of FRA grants and other funding.

Improving Grade Crossing Safety

Highway-rail grade crossing incidents are the second leading cause of rail-related deaths, accounting for approximately 30 percent of all rail-related fatalities and are the top cause of all railroad accidents.  Increasing grade crossing safety will not only reduce the number of fatalities, but it will also improve the safety and efficiency of the rail transportation network.  FRA expects the risk of highway-rail grade crossing incidents to grow as both train and highway traffic increases during the next decade.

In October of last year, the Department hosted the first Highway-Rail Grade Crossing Safety and Trespass Prevention Summit.  The event brought together safety advocates, railroads, labor organizations, law enforcement, and both Canadian and U.S. transportation officials to exchange ideas and begin developing best practices on implementing a coordinated national response to the growing problem of trespassing incidents on railroad property and to increase grade crossing safety.  At the conclusion of the Summit, FRA committed to hosting a series of listening sessions to identify technology to improve the functioning of grade crossing warning systems and safety, as well as barriers to implementation.

This past spring, FRA hosted those listening sessions.  We brought together railroads, labor organizations, signal equipment manufacturers, trade and advocacy groups, technology companies, and representatives from federal, state, and local governments to discuss ways of improving grade crossing safety through technology.  Participants discussed demonstrated and emerging technologies that could be used to improve grade crossing safety and ideas for needed regulatory changes to help field new grade crossing technology.  Ideas included both highly complex technological improvements and lower tech improvements.  FRA is using all the information and ideas gathered through this symposium to develop a three-year plan to improve grade crossing safety.  We will hold a follow-up symposium this fall to continue the dialogue with all stakeholders.  We will continue to collaborate with our modal partners including the Federal Highway Administration, Federal Motor Carrier Safety Administration, and National Highway Traffic Safety Administration, to provide ongoing assistance to all stakeholders, and develop and promote new tools and resources to support grade crossing safety.

Confidential Close Call Reporting System (C³RS)

C³RS is a voluntary FRA program enabling participating railroads’ and their employees to improve the safety culture of their organizations and to proactively identify and address safety issues before accidents occur.  For properly reported and qualifying close calls, employees are protected from company discipline, and both employees and railroads are protected from FRA enforcement.  Root cause analysis is conducted on individual close call events, and collectively, safety hazards are identified. Railroads are then empowered to develop solutions to proactively mitigate or eliminate the identified hazards, thus avoiding the costs and often devastating consequences of an accident or incident.

FRA first piloted the C³RS program in 2007 with the train, yard, and engine craft employees of 4 railroads.  Since then, the program has grown to 15 railroads with over 23,000 employees involved from all crafts.

On participating railroads, several tangible safety improvements have resulted from the C³RS program thus far.  Most notably, derailments caused by human factors are down 41 percent and derailments caused by run-through switches are down 50 percent.  The program has also led to more qualitative benefits such as improved collaboration between labor and management on safety improvements, and in several instances, the discovery of multiple factors playing a role in a single event, leading to more systemic corrective actions.  This level of collaboration and data analysis is often stifled in the traditional environment of railroad discipline.

FRA is actively working to increase railroad and employee participation in the program and to identify alternative funding sources for the program.  Specifically, FRA is evaluating ways to allow industry to provide funding for the program and how to potentially leverage machine learning technology to effectively automate the processing of close call reports in the future.

Going forward, FRA is prioritizing the expansion of the C³RS program, along with other industry partnerships designed to ensure a transparent sharing of information among all stakeholders and enabling the effective identification, analysis, and mitigation or elimination of risks throughout the rail operating environment.

Conclusion

FRA has a responsibility to the public, to railroad employees, and to railroads themselves to lead industry to the next generation of safety improvements.  FRA is committed to continuing to work with all stakeholders to achieve this new level of safety.

FAST Act Reauthorization: Transportation and Safety Issues

Testimony of
Heidi King, Deputy Administrator
National Highway Traffic Safety Administration

Before the
Committee on Commerce, Science, and Transportation
United States Senate

“FAST Act Reauthorization: Transportation and Safety Issues”
10:00 AM - June 19, 2019

Chairman Wicker, Ranking Member Cantwell, and Members of the Committee, thank you for inviting me to testify today.  Since I testified before this Committee last year, the National Highway Traffic Safety Administration (NHTSA) has advanced numerous initiatives to improve safety.

In recent years, more than 37 thousand lives were lost needlessly in motor vehicle crashes across the nation each year.  That is more than a statistic:  because of these crashes, we have each lost friends, neighbors, and family.

At NHTSA, we continue to employ risk management best practices to identify, assess, mitigate, and continuously improve our collective management of roadway safety risks.  I appreciate the opportunity to provide you with an update on the work of NHTSA to enhance motor vehicle and roadway safety for all Americans.

Drug-Impaired Driving

Last year, NHTSA challenged the nation to save lives by addressing the growing risks of drug-impaired driving.  The agency launched the “If You Feel Different, You Drive Different” public education campaign and an enforcement campaign, “Drive High, Get a DUI.”  I would like to commend this Committee for its support of the High Visibility Traffic Safety Enforcement program and look forward to our continued collaboration to raise awareness of important safety campaigns.

NHTSA has also awarded grant funds to the states to support training of additional Drug Recognition Experts (DRE) and Advanced Roadside Impaired Driving Enforcement (ARIDE) traffic safety officers.  This will increase the number of officers trained to recognize drivers who are impaired by drugs, including opioids and marijuana.

Emergency Medical Services and Law Enforcement

NHTSA has supported the development of comprehensive Emergency Medical Services (EMS) systems for more than 40 years.  I feel fortunate to have served earlier in my career as a 9-1-1 dispatcher, an Emergency Medical Technician, and as a law enforcement officer, and I know how important these services are to the safety and well-being of our communities.

In January 2019, NHTSA’s Office of EMS published Agenda 2050 to help individuals, EMS leaders, and communities create a more people-centered EMS system.  It is the product of a collaborative and inclusive two-year effort to create a bold plan for the nation’s EMS system over the next several decades.

Additionally, NHTSA has been working closely with the Department of Commerce to advance grants that would support state, local, and tribal efforts to deliver optimal 9-1-1 services, including migration to adoption and operation of Next Generation 9-1-1 services. The agencies expect to award more than $100 million in grant funding for Next Generation 9-1-1 in the near future.

Like EMS, NHTSA’s partnership with law enforcement is critical to our safety agenda.  NHTSA will continue to engage with law enforcement officers, prosecutors, and judges. These partnerships are crucial to the success of the agency’s efforts to encourage safe traffic behaviors.

Safety Rules

NHTSA’s regulatory priorities for 2019 include several rulemakings and other actions to increase safety and reduce economic burden.  NHTSA will explore removing existing regulatory barriers that prevent vehicles from adopting innovative safety features, including plans to finalize a rule that will allow for adaptive driving beam headlamps.  The agency also intends to consider a rulemaking on rear seat belt warning systems to increase seat belt usage and potentially improve crash protection of back seat occupants.  NHTSA plans to consider standardizing the electronic disclosure of odometer information, which might provide an opportunity for state Motor Vehicle Departments to facilitate completely paperless transactions for vehicle registrations.

One of NHTSA’s most important regulations addressing safety is the Safer Affordable Fuel Efficient Vehicles Rule, or SAFE Vehicles Rule. Because newer cars are safer than older cars, NHTSA and EPA are carefully studying whether costly standards discourage consumers from replacing their older car with a new car that is safer, cleaner, and more fuel efficient.  The proposed rule was published last year and the agencies are working together toward issuing a final rule soon.

Automated Vehicles/ADAS

NHTSA is committed to ensuring safety while encouraging advances in innovation.  NHTSA, together with other federal agencies, will continue undertaking activities that support and maintain the United States’ global leadership in the safe deployment of automated vehicles, with a focus on collaboration, uniformity, and interoperability to accelerate testing, validation and deployment of new life-saving technologies.

Thank you for your time today, and I am pleased to answer your questions.

Fast Act Reauthorization: Transportation and Safety Issues

STATEMENT OF ADMINISTRATOR
RAYMOND MARTINEZ
FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

BEFORE THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
FAST ACT REAUTHORIZATION: TRANSPORTATION AND SAFETY ISSUES

JUNE 19, 2019

WRITTEN TESTIMONY

Chairman Wicker, Ranking Member Cantwell, and members of the Committee, thank you for inviting me to testify about the Federal Motor Carrier Safety Administration’s (FMCSA) work to improve motor carrier, driver, and commercial vehicle safety as we continue implementing the Fixing America’s Surface Transportation Act (FAST Act, PL 114-94). It is an honor to testify today before the Committee.

As you know, the primary mission of FMCSA is to reduce crashes, injuries, and fatalities involving large trucks and buses.

FMCSA was established as a separate administration within the U.S. Department of Transportation on January 1, 2000, pursuant to the Motor Carrier Safety Improvement Act of 1999. For more than 19 years, the 1,100 men and women of FMCSA have worked hard to ensure that freight and people move safely by providing oversight of motor carriers, commercial motor vehicles, and commercial drivers in the United States.

We regulate more than half a million interstate motor carriers, including truck and motorcoach companies, household goods carriers, hazardous materials carriers and nearly 4.7 million active holders of commercial drivers’ licenses.

FMCSA has worked diligently to implement rulemakings and make reports available to Congress, studies, and working groups as directed by the FAST Act as well as continue our ongoing safety and regulatory initiatives.

FMCSA is proceeding in the following ways;

One area, our Motor Carrier Safety Assistance Program, provides grant funding to support 13,000 State law enforcement partners who conduct 3.5 million commercial motor vehicle inspections each year. We thank Congress for the FAST Act changes that streamlined our grant programs and provided more flexibilities with the critical resources our State enforcement partners and other grantees use to carry out their important safety work.

We are also pleased to update you on our progress to refine how we use our motor carrier data. Section 5221 of the FAST Act required the National Academy of Sciences to conduct the Correlation Study of the Compliance, Safety, Accountability (CSA) program and its Safety Measurement System (SMS).

The Academy published its report in June 2017, including recommendations to improve FMCSA’s analysis and the data that feeds our safety systems and programs. We accepted the Academy’s recommendations and published our corrective action plan.  In addition, we have gathered public input through a public meeting and established a standing committee with the National Academy to continue receiving their input and advice as we complete our actions. 

How crashes are used in SMS has been a longstanding concern of drivers and motor carriers. To address those concerns, FMCSA launched a Crash Preventability Demonstration Program in July 2017 to review certain crashes scenarios to determine if the driver could have prevented the crash.

While we are not currently removing “not preventable” crash determinations from SMS, the determination is noted on the carrier’s list of crashes on SMS and the motor carrier is provided with an alternative SMS measure and percentile without the “Not Preventable” crash or crashes.

To date, more than 5,300 preventability determinations have been made on eligible crashes—and about 93 percent of them were found to be “Not Preventable.” While the current program is slated to run through July 2019, Secretary Elaine Chao recently indicated that we will be continuing the program and adding an additional group of crashes for consideration.  FMCSA will be publishing a Federal Register notice explaining changes to the program and soliciting input from stakeholders.

Mr. Chairman, ensuring safe commercial motor vehicle operation means making sure drivers—both new drivers and experienced ones—are drug and alcohol free.  The Drug and Alcohol Clearinghouse will move us closer to that goal.

As you know, in 2012, Congress directed the Secretary of Transportation to establish a national Clearinghouse containing commercial driver license holders’ violations of FMCSA’s drug and alcohol testing program as directed by Section 32402 of the Moving Ahead for Progress in the 21st Century Act (MAP-21). The final rule published in December 2016 established a January 2020 compliance date for the rule. 

The Clearinghouse improves safety by identifying drivers who have committed either drug or alcohol violations that would make them ineligible to operate commercial motor vehicles, until they complete the required return-to-duty process.

In January 2020, the Clearinghouse will begin collecting positive test results and refusals.  Once the Clearinghouse has three years of data, employers will only have to check the Clearinghouse for pre-employment and annual reviews.  We have a dedicated website for those who want to learn more about the Clearinghouse and register to receive updates.

Along the same lines of making sure commercial vehicle drivers are operating safely, FMCSA is completing regulations to mandate Electronic Logging Devices (ELDs) to address Hours-of-Service (HOS) compliance, in accordance with FAST Act requirements.

The Congressionally-mandated ELD rule, published in December 2015, requires most drivers previously using paper logs to use ELDs to record information about their HOS. The final rule’s first compliance date was December 18, 2017, and full enforcement of the ELD rule began on April 1, 2018.

Of the nearly 300,000 driver inspections that have been conducted since April 1, 2018, less than one percent of drivers inspected have been cited for failing to have an ELD or grandfathered Automatic On-Board Recording Device (AOBRD) when required.  Additionally, HOS violations have decreased by 52 percent over the last year.

Since 2018, we have conducted numerous outreach events regarding ELD requirements around the country.  The last implementation deadline for companies using grandfathered AOBRDs is December 16, 2019.

Mr. Chairman, the ELDs have supplied us with more data, and some of that data highlighted areas of the current Hours-of-Service regulations that we may need to adjust or improve.

Last year, FMCSA requested public comments on (1) the short-haul HOS limit; (2) the HOS exception for adverse driving conditions; (3) the 30-minute rest break provision; and (4) the rule requiring drivers to spend eight consecutive hours in a sleeper berth.  In response, we received more than 5,200 public comments during the comment period. Also last year, we conducted five public listening sessions around the nation concerning potential changes to the four HOS areas discussed in the notice.

As you may know, Secretary Chao announced recently that the Agency is moving forward with a proposed rule on HOS changes. Currently, this proposed rule is under review at the Office of Management and Budget. Please know that we want to provide greater flexibility for drivers while maintaining the highest degree of safety as we move forward with this work. We look forward to receiving comments on our proposal and then moving forward quickly to make the needed regulatory changes.

Collaborating with industry partners and safety stakeholders who represent the broad array of road users—including cars, trucks, buses, pedestrians, and cyclists—we amplify the message that we all can exist on our nation’s roadways. We recently launched a new series of videos, online content, and public safety announcements, all aimed at raising awareness for motorists operating around large trucks and buses. FMCSA is excited about this opportunity to work with our partners and stakeholders about the ways we can all be safer road users.

Finally, Mr. Chairman, you asked FMCSA to suggest ways to expand upon the FAST Act’s achievements. We have a suggestion for your consideration that would further our mission and contribute to safer drivers and roadways.

We know that the trucking industry must take proactive steps to continually improve its safety record. A suggested step would include studying the causes of truck-involved crashes in order to take appropriate countermeasures to reduce such crashes.

According to multiple studies, data, and other indicators, most large truck-involved crashes are the result of driver behaviors and errors. The data further indicates that other motorists—not professional truck drivers—are more likely to be at fault.

FMCSA and the National Highway Traffic Safety Administration (NHTSA) conducted the Large Truck Crash Causation Study (LTCCS) in 2001 to 2003. The Congressionally-mandated study examined the reasons for serious crashes involving large trucks (trucks with a gross vehicle weight rating over 10,000 pounds).

In the more than 15 years since the original study, many changes in technology, vehicle safety, driver behavior, and roadway design have occurred that affect driver performance.

Since the study ended in 2003, fatal crashes involving large trucks decreased until 2009 when they hit their lowest point in recent years (2,893 fatal crashes).  Since 2009, fatal crashes involving large trucks have steadily increased to 4,237 fatal crashes in 2017, a 46.5 percent increase when compared to 2009.  From 2016 to 2017, the number of large trucks involved in fatal crashes increased 10 percent, from 4,251 to 4,657.

Mr. Chairman, we believe that it is time for another causation study. A new LTCCS can help FMCSA identify factors that are contributing to the growth in fatal large truck crashes, and in both injury and property damage only (PDO) crashes.  Analyzing these factors will drive new initiatives to reduce crashes on our nation’s roadways.

Mr. Chairman, the public expects a safe, efficient, and reliable transportation system. With your support, FMCSA employees—working with our partners and stakeholders—will continue to share this solemn commitment to preserving that reliable transportation system, as well as maintaining safety for all road users.

I would be happy to answer any questions you may have.

FAST Act Reauthorization: Transportation and Safety Issues

Statement of Joel Szabat
Assistant Secretary for Aviation and International Affairs
Office of the Secretary of Transportation

Before the United States Senate
Committee on Commerce, Science & Transportation

FAST Act Reauthorization: Transportation and Safety Issues
Wednesday, June 19, 2019

Chairman Wicker, Ranking Member Cantwell, Members of the Committee, thank you for inviting the Office of the Secretary of Transportation to testify about our work to improve safety and lead innovation in our nation’s transportation system, as well as our progress implementing the Fixing America’s Surface Transportation (FAST) Act. It is an honor to testify today before this Committee.

Safety

Safety is the U.S. Department of Transportation’s (DOT or Department) number one priority, and we are committed to reducing transportation-related fatalities and serious injuries across the transportation system. The Department has adopted a systemic, safety management systems approach that mitigates risks and encourages infrastructure and behavior change through data-driven risk identification, enhancement of standards and programs, and evaluation of effectiveness. In 2018, the Department released an updated strategic plan identifying the goals, objectives, and strategies we will pursue to improvement to safety, infrastructure, and innovation in our nation’s transportation system.

This plan highlights the Administration’s commitment to the needs of rural America, specifically addressing the need to reduce the disproportionate transportation safety risks faced by rural communities. In 2017, the highway fatality rate on rural roads was more than double the rate on urban roads. The successful execution of a systemic safety approach requires quality information derived from sound analysis to enable the Department, as well as our states and local government partners, to apply a data-driven approach to determine the best solutions to address safety problems.

Safety Data Initiative

Through the Safety Data Initiative (SDI), the Department is seeking to advance our ability to integrate existing Department data with new “big data” sources, use advanced analytics to provide new insights into transportation safety risks, and create data visualizations to help policy makers arrive at safety solutions. We are wrapping up the first phase of the SDI, where we launched a series of pilot projects to seek new ways to find answers to fundamental traffic safety questions.

In the Waze Pilot Project, we leveraged near-real-time private sector data to gain new insights into traffic crashes by applying machine learning techniques to develop crash estimation models. The Waze Pilot Project consists of two case studies exploring state and local applications of the Waze models. We have been working with Tennessee Highway Patrol to integrate Waze data into their existing crash model structure to improve resolution. We are working with the City of Bellevue, Washington to test if Waze data can offer actionable insights that will inform the Bellevue Vison Zero action plan. Beyond the Waze pilot, to make the Department’s data more accessible, we worked with the National Highway Traffic Safety Administration (NHTSA) to convert traffic fatality data from their Fatality Analysis Reporting System into interactive visualizations related to speeding and pedestrian safety.

In addition to these pilot projects, the SDI includes the Solving for Safety Visualization Challenge, a multistage, $350,000 national competition in which solvers developed analytical tools, powered by visualizations, to reduce serious crashes on the nation's roads and rails. Fifty-four solvers from universities, the private sector, and other innovative fields submitted proposals, five semi-finalists were selected, and two finalists are developing full working tools. The two finalists are Ford Motor Company and the University of Central Florida.

Roadway Safety Research

The Department’s safety research programs have significantly improved the safety of our roadways. FHWA conducts research to identify innovative roadway designs that can save lives. For example, replacing an intersection that uses stop signs or traffic signals with a roundabout can reduce crashes by around 80%. (https://safety.fhwa.dot.gov/provencountermeasures/roundabouts/)

Federal Highway Administration NHTSA estimates more than 600,000 lives have been saved between 1960 and 2012 through adoption of vehicle safety technologies. The Federal Motor Carrier Safety Administration (FMCSA) estimates that its data driven compliance and enforcement program saves more than 200 lives per year.

Transportation engineers rely on significant amounts of crash data to design and deploy safety counter measures. To continue reducing roadway fatalities, the Department needs more data and better quality data, especially on pedestrians, bicyclists, and motorcyclists. The SDISDI is a step forward in addressing some of the research gaps in our understanding of roadway safety. For example, pedestrian fatalities have increased over the past few years, though it remains difficult to determine if increased exposure (more people out walking) has contributed that increase.

NHTSA needs to better understand the true scope of drug-impaired driving. With actual and proposed changes to state and federal law regarding marijuana, it is increasingly important that we address this critical safety issue. No chemical testing exists for drug impaired driving, similar to the blood alcohol test. Having clear standards is critical for law enforcement documenting accidents.

Similarly, it is currently difficult to determine the full impact of distracted driving. Some studies suggest that the number of distraction-related crashes and fatalities is higher than what can be determined by current methods. Moreover, new vehicle technology linking drivers in-vehicle to the Internet continues to expand and evolve at a rapid pace.

FMCSA finished a comprehensive large-truck crash causation study in 2003 to understand the factors that contribute to crashes involving at least one commercial vehicle. Since then, there have been many changes in technology, vehicle safety, driver behavior, and roadway design. FMCSA is interested in conducting a revised crash causation study and is seeking information on the most effective methodology for best collecting crash data.

5.9GHz Spectrum

The 5.9 GHz band of radio-spectrum (or “Safety Band”) is of critical importance to the Department for reducing crashes, injuries, and fatalities, while mitigating congestion. It is uniquely positioned today to support safety applications that could prevent or significantly reduce the severity of vehicle crashes in a manner not available through other existing vehicle technologies. The Safety Band already is used by state transportation departments for vehicle-to-vehicle (V2V) and pedestrian collision avoidance, transit priority, traffic light control, traffic monitoring, travelers’ alerts, automatic toll collection, traffic congestion detection, emergency vehicle signal preemption of traffic lights, truck platooning, and electronic inspection of moving trucks through data transmissions with roadside inspection facilities.

The Safety Band also governs numerous systems such as red-light violation warnings, reduced speed zone warnings, curve speed warnings, spot weather-impact warnings and other safety-critical applications. The Safety Band is actively being used today with more than 80 connected vehicle projects in the U.S. alone (54 currently operational). These sites are using all of the different channels to address different safety-related issues. A common path forward is needed to ensure that current deployments can continue without the risk of investment loss and/or jeopardizing the intended safety and mobility benefits.

As technology advances, it is clear that interoperability is central to enabling universal, nationwide and regionwide vehicle-to-everything (V2X) capability and benefits. Promising technology for interoperability between DSRC, CV2X, Bluetooth, and other forms of wireless communications has already emerged, as demonstrated at the recent ITS America Annual Meeting in Washington, D.C.

The Department does not promote any particular technology over another, and we encourage the automotive industry, wireless technology companies, and other innovators to continue developing multiple technologies that leverage the 5.9 GHz band of spectrum for transportation safety benefits. DOT must ensure that use of the Safety Band is protected for traffic safety so that automated light duty vehicles, trucks, motor coaches, rail, transit, and infrastructure and traffic devices across all surface modes can work in the safest possible way. Doing so can help reduce the annual number of 37,000 road deaths and 2.7 million injuries.

Intelligent Transportation Systems

The Intelligent Transportation Systems (ITS) Joint Program Office (JPO) serves as the Department’s multi-modal technology research program, working toward improving transportation safety, mobility, and efficiency; and enhancing productivity through the integration of innovative technologies within our nation’s transportation system. ITS JPO’s efforts address the Department’s innovation strategic goal. By undertaking the research and deployment of innovative technologies, ITS JPO ensures the Department remains at the forefront of the latest technological advances.

The ITS JPO is responsible for coordinating the ITS Program and initiatives among all DOT operating administrations. The research builds on and leverages the technology and applications developed across all modes delivering cross-cutting research activities and technology transfer that support the entire Department. The ITS Program is directly aligned with DOT’s mission of ensuring the nation has the safest, most efficient and modern transportation system in the world. The program categories undertake the research and deployment of emerging ITS technologies and capabilities to leverage emerging public and private innovations. The program serves as an innovative hub for various aspects of American transportation, from automation and data to new communication systems and cybersecurity.

Movement of the Office of the Assistant Secretary for Research and Technology

With the passage of the Consolidated Appropriations Act, 2019 (P.L. 116-6; February 15, 2019), the Office of the Assistant Secretary for Research and Technology (OST-R) has been moved into the Office of the Under Secretary of Transportation for Policy (S-3). This transfer reinforces alignment of research and technology programs and evidence-based data collections with priorities of the DOT Strategic Plan analysis. 

OST-R directly addresses the Secretary’s innovation priority goals and indirectly impacts the achievement of the Secretary’s safety and infrastructure goals, by working across all operating administrations (OAs) to ensure that research investments are directly aligned with Department priorities. OST-R programs identify synergies, gaps, and opportunities to apply research cross-modally, which prevents the duplication of research efforts and waste of federal resources.

OST-R coordinates, facilitates, and reviews the Department’s research and development programs and activities; coordinates and develops positioning, navigation, and timing (PNT) technology; maintains PNT policy, coordination, and spectrum management; and oversees and provides direction to the Bureau of Transportation Statistics, the Intelligent Transportation Systems Joint Program Office, the University Transportation Centers program, the Volpe National Transportation Systems Center (Cambridge, MA), and the Transportation Safety Institute (Oklahoma City, OK).

OST-R’s mission is expanded to establish a comprehensive, Department-wide, research review and approval process. This enhanced oversight role, beginning in FY 2019, ensures that Operating Administrations’ research portfolios are aligned with Secretarial priorities, comply with statutory mandates, and make effective and efficient use of the Department’s research funds. OST-R is also DOT’s primary facilitator of T2, or “technology transfer,” maximizing the impact of Federal research investments by accelerating the deployment of new technologies and practices.

Accelerating Project Delivery

Our nation’s economy relies on an infrastructure system that can deliver people and goods efficiently and on-time. As economic growth places increasing demands on our infrastructure systems, the growing state of disrepair poses threat to that growth. In 1933, ground was broken on the Golden Gate Bridge, which opened just 4 years later. Since then, layers of federal bureaucracy and regulatory red-tape have placed countless obstacles to delivering transformative transportation projects. For some projects, the environmental review process can take more than 10 years to complete. We can do better.  By improving the efficiency of the environmental review and permitting processes, we can accelerate project delivery and achieve better outcomes for communities and the environment. 

One of the Department’s strategic goals is to invest in infrastructure to ensure safety, mobility, and accessibility and to stimulate economic growth, productivity, and competitiveness for American workers and businesses. We seek to achieve this goal through strategies described in our strategic plan, including streamlining the environmental review process to deliver transportation projects, both large and small, more quickly and efficiently to provide timely benefits to users while safeguarding our communities and maintaining a healthy environment.

Currently, the environmental review process can be complex, inconsistent, and difficult for project sponsors to navigate. Protection of the environment and safeguarding of our communities is of critical importance, and can be achieved more effectively, thereby resulting in reducing project delays and costs, and realizing benefits of critical infrastructure projects sooner. We appreciate the tools that have been provided in past transportation authorizations. The Department implemented all project delivery rules required by the Moving Ahead for Progress in the 21st Century (MAP-21) Act and the FAST Act, except for a pending final rule implementing the FAST Act pilot to authorize states with National Environmental Policy Act (NEPA) assignment to substitute state environmental laws and regulations for NEPA.[1

Through its Infrastructure Permitting Improvement Center, the Department continues to take other actions that further the MAP-21 and FAST Act provisions, implement the One Federal Decision requirement under Executive Order 13807 and associated Memorandum of Understanding, and otherwise improve the project delivery process through increasing transparency and accountability, expanding early coordination with agencies and stakeholders, and increasing information sharing and coordination among the lead, cooperating, and participating agencies. The Department is reviewing and updating its policies and guidance with these objectives in mind, so we make better and more timely decisions, thereby being able to deliver critical infrastructure with associated benefits to the public in a more efficient and cost-effective manner, and while continuing to protect communities and the environment.

Non-Traditional and Emerging Transportation Technology Council

The Department also needs to adapt so state, local, and private sector abilities to deliver innovative transportation projects are not harmed by the same challenges facing traditional transportation modes. At South by Southwest in March, Secretary Chao announced the creation of the Non-Traditional and Emerging Transportation Technology (NETT) Council, an internal deliberative body at the Department tasked with identifying and resolving jurisdictional and regulatory gaps that may impede the deployment of new technology, such as tunneling, hyperloop, autonomous vehicles, and other innovations.

Each of the Department’s operating administrations has its own traditional jurisdiction over certain environmental and regulatory approvals. New technologies may not always fit precisely into the Department’s existing regulatory structure, potentially resulting in a slower pace of transportation innovation.

Inventors and investors approach the Department to obtain necessary safety authorizations, permits, and funding and often face uncertainty about how to coordinate with the Department. The NETT Council will address these challenges by ensuring that the traditional modal silos at DOT do not impede the deployment of new technology. Furthermore, it will give project sponsors a single point of access to discuss plans and proposals.

The NETT Council represents a major step forward for the Department in reducing regulatory burdens and paving the way for emerging technologies in the transportation industry. The Council held its first formal meeting on March 14, 2019 and is currently working through non-traditional tunneling and hyperloop projects. The Council is set to have four meetings this year with additional meetings scheduled when appropriate.

Build America Bureau

In addition to supporting the development emerging technologies, the Department continues its work through several financing and grant programs to pursue its strategic goal to invest in infrastructure to ensure safety, mobility and accessibility and to stimulate economic growth.

The Department provides low cost, flexible loans and allocates tax exempt Private Activity Bonds (PAB) to finance transportation infrastructure projects through the Build America Bureau (Bureau). During this Administration, more than $25 billion worth of transportation projects have been financed using over $12 billion in loans and PAB allocations nationwide. The Bureau has recently increased its outreach efforts particularly to project sponsors who are not familiar with these programs to provide technical assistance and increase the level and scope of support we can provide early in the planning process. The Bureau is also focused on diversifying our portfolio by removing costly barriers to small or rural borrowers, providing credit subsidy for small and medium sized freight railroads and broadening the scope of project types and asset classes eligible for Bureau credit.

Infrastructure For Rebuilding America (INFRA) Grants

The Nationally Significant Freight and Highways Projects program—which we refer to as the INFRA grants program—is a critical source of funding for larger scale projects which generate economic, mobility, and safety benefits. Since 2016, this program has awarded $2.3 billion to 54 projects across the country, unlocking $11.8 billion in total investment. It remains a very popular program; the Department received nearly 200 applications requesting nearly $9.8 billion in funding in response to the fiscal year (FY) 2019 solicitation. Approximately $856 million is available for award, and the Department plans to notify Congress of its proposed selections soon.

The INFRA program selection criteria advance critical Administration goals such as supporting economic vitality, increasing non-federal leverage, rewarding innovation, and incentivizing performance and accountability among federal grant recipients. Each project is evaluated according to these criteria, and these assessments support Departmental investment decisions. The FY 2020 budget proposal—which requested an additional $1 billion in appropriated funding to supplement the FY 2020 amount authorized in the FAST Act—reflects the Administration’s high opinion of the program’s track record and future potential.

Better Utilizing Investments to Leverage Development (BUILD) Grants

Since enactment of the FAST Act, the Department awarded 173 projects with significant local or regional impact under the TIGER/BUILD program including 133 road, transit, rail, and maritime projects awarded under this Administration. Combined, these projects represent a $2.5 billion investment in surface transportation projects across the country. To ensure the Department appropriately addresses rural transportation needs, the Department awarded a greater share of TIGER and BUILD funding in the past two rounds to projects to projects in rural areas than in urban areas.

The merit-based, competitive nature of the TIGER/BUILD program allows the Department to award projects that most align with selection criteria, including safety, economic competitiveness, state of good repair, environmental sustainability, and quality of life in order to impact the communities in which they are located. Investments under this program complement other transportation investment by supporting projects identified by local communities as those that best reflect their needs.

Automated Driving System (ADS) Demonstration Grants

The Consolidated Appropriations Act, 2018 (P.L. 115-141, March 23, 2018) provided $60,000,000 for an Automated Driving System (ADS) Demonstration Grants Program to test the safe integration of ADS on our Nation’s roadways. The three goals of the ADS program are:

• Safety: Fund projects that demonstrate how challenges to the safe integration of ADS into the Nation’s on-road transportation system can be addressed.
• Data for Safety Analysis and Rulemaking: Ensure significant data gathering and sharing of project data with the Department and the public throughout the project.
• Collaboration: Create collaborative environments that harness the collective expertise, ingenuity, and knowledge of multiple stakeholders.

Each demonstration must focus on the research and development of automation and ADS technology, include a physical demonstration, include near-real-time gathering and sharing of relevant and required data with the Department throughout the project, include user interfaces are accessible to users with varied abilities, and address how the demonstration can be scaled to be applicable across the nation.

The Department issued a Notice of Funding Opportunity on December 21, 2018 with applications closing on March 21, 2019. We expect to announce awardees in the coming weeks.

Automated Driving Systems

The development and deployment of automated vehicle-related technology is moving rapidly, and this pace is only expected to accelerate over the next decade. Historically, human error has been a factor in 94% of fatal crashes, which automated technology could help address. Automation is expected to bring many other benefits as well—such as increased independence for people with disabilities and older Americans, better delivery times, and more efficient movement of goods—making the whole economy more productive.

On October 4, 2018, the Department released “Preparing for the Future of Transportation: AV 3.0.” AV 3.0 advances DOT’s commitment to supporting the safe integration of automation into the broad multimodal surface transportation system. It also reiterates approaches to safety that were established in prior guidance, provides new multi modal safety guidance, and outlines a process for working with the Department as this new technology evolves. Fourteen companies have publicly released Voluntary Safety Self-Assessments to communicate their approaches to incorporating safety into the design and testing of automated driving systems.

DOT is partnering with the Department of Labor, the Department of Commerce, and the Department of Health and Human Services to conduct an analysis of known and emerging workforce impacts and operational safety issues for commercial drivers introduced by implementation of automation technology over time. We held an event on March 20, 2019, to receive stakeholder input into the development of the study and an accompanying report to Congress, expected summer 2019. With this study, our goal is to provide reliable information to policy makers and the public, to help our nation prepare so that we all benefit from the introduction of new technologies.

Despite its promise and the progress that has been made, automated vehicle technology is still in its early stages of development. The public has concerns about the safety and security of this new technology. These concerns must be addressed, because without public acceptance, we know automated technology will never reach its full potential. The promise and safety of automated vehicles is only possible through open public-private participation and active community engagement.

Safety Applications of Unmanned Aircraft Systems

Another front of rapid innovation is in Unmanned Aircraft Systems (UAS), commonly known as drones. The Department has seen progress in UAS uses in recent years, particularly for safety applications. UAS are particularly useful for tasks that are time consuming, dangerous, or infeasible for people to perform manually. In agriculture, manned aircraft are used for crop-spraying and remote-sensing. UAS can fly lower, more precisely, and at a lower cost than manned aircraft, broadening the potential uses of aircraft in agriculture potentially reducing farmworker exposure to safety risks.

UAS carry distance, altitude, and frequency advantages over existing pipeline inspection methods. UAS could offer real-time, precise, and high-definition data that would be cost-prohibitive to collect with manned aircraft or on-the-ground inspectors. Certain companies in the rail industry, are trialing UAS beyond visual line-of-sight for inspections in select areas. UAS can ease inspection of traditionally hard-to-reach areas on bridges and may also protect rail workers from manual track inspection risks.

Thank you for your time today, and I am pleased to answer your questions.

Drone Security: Enhancing Innovation and Mitigating Supply Chain Risks

STATEMENT OF ANGELA H. STUBBLEFIELD, DEPUTY ASSOCIATE
ADMINISTRATOR FOR SECURITY AND HAZARDOUS MATERIALS SAFETY,
FEDERAL AVIATION ADMINISTRATION,

BEFORE THE SENATE COMMITTEE ON COMMERCE, SCIENCE AND TRANSPORTATION,
SUBCOMMITTEE ON SECURITY
DRONE SECURITY: ENHANCING INNOVATION AND MITIGATING SUPPLY CHAIN RISKS

JUNE 18, 2019

Chairman Sullivan, Ranking Member Markey, and Members of the Subcommittee:

Thank you for inviting me to speak with you today.  As the Federal Aviation Administration’s (FAA) Deputy Associate Administrator for the Office of Security and Hazardous Materials Safety, I share the Associate Administrator’s responsibilities for formulating policies and plans, and directing national programs involving internal security, intelligence analysis and threat warning, emergency response, and safe air transportation of dangerous goods.  This includes ensuring programs and operations are coordinated and integrated with the appropriate external and internal organizations.  My office coordinates regularly with the National Security Council (NSC), the Departments of Defense (DOD), Homeland Security (DHS), Justice (DOJ), and Energy (DOE), as well as other security and safety partner agencies at the federal, state, and local levels, to resolve complex national security, safety, and crisis-response challenges.  My office is helping to coordinate FAA engagement with stakeholders on Unmanned Aircraft System (UAS) security issues including UAS detection and Counter-UAS (C-UAS) policy.

UAS technology represents one of the fastest growing sectors in aviation today.  The volume of UAS operations is outpacing manned aircraft, and there are currently nearly four times as many UAS as registered manned aircraft.  UAS are used every day to inspect infrastructure, provide emergency response support, survey agriculture, conduct geological and environmental surveys, and to go places that are otherwise dangerous for people or other vehicles.  Entrepreneurs around the world are exploring innovative ways to use UAS in their commercial activities.  The need for us to fully integrate this technology into the National Airspace System (NAS) in a safe, secure, and efficient manner continues to be a national priority—one in which both the FAA and our security partners are heavily invested.

UAS technology offers tremendous benefits to our economy and society, as Congress has recognized, but we must also acknowledge that potential misuse of this technology poses unique security challenges that enable bad actors to overcome the traditional ground-based security measures in place at most sensitive facilities.  Today, I would like to discuss with you the FAA’s efforts in support of the safe, secure, and efficient integration of UAS into the NAS, including the status of our work with our federal partners to implement counter-UAS authorities and coordination efforts with airport sponsors and other critical infrastructure owners to support their desire to identify and respond effectively to the safety or security risks that may be posed by the errant or malicious use of UAS.

Safe and Secure Integration of UAS into the NAS

The FAA’s primary mission is to provide the safest, most efficient airspace system in the world.  The FAA uses its statutory authority to carry out this mission by issuing and enforcing regulations and standards for the safe operation of aircraft, by developing procedures to ensure the safe movement of aircraft through the nation’s skies, and by providing air traffic control and other air navigation services.  In exercising its authority, the FAA also must consider the public’s right of free transit through the navigable airspace.  This requires close coordination to balance the needs of our security partners with the right of airspace access for both manned and unmanned aircraft.  Consistent with our mission, in 2016, the FAA issued the basic rules for small UAS operations—14 C.F.R. part 107—which set the global standard for integration and provided small UAS operators with unprecedented access to the NAS. 

Recently, as part of our effort to address the ever-expanding universe of UAS operations and capabilities, the FAA together with the Department’s Office of the Secretary published a proposed new rule on the operation of small UAS over people.^[1]  The proposal seeks to balance the need to mitigate safety risks with supporting technological and operational advances.  The FAA also recently published an advanced notice of proposed rulemaking seeking public input to identify UAS safety and security issues and explore ways to mitigate risks UAS may pose to other aircraft, to people on the ground, or to national security.^[2]  The FAA’s security partners have highlighted for us some of the important security and public safety questions as we work through these issues.  Further, in February 2019, the FAA published an interim final rule on external marking requirements for small UAS.^[3]  The rule requires small unmanned aircraft owners to display their unique identifier (FAA registration number) on an external surface of the aircraft.  Small unmanned aircraft owners are no longer permitted to enclose the FAA-issued registration number in a compartment.  The FAA took this action to address concerns expressed by the law enforcement community and the FAA’s interagency security partners regarding the risk a concealed explosive device poses to first responders who must open a compartment to attempt to find the small unmanned aircraft's registration number.

I would also highlight the work of our joint industry Unmanned Aircraft Safety Team (UAST), which is taking a data-driven approach to the analysis of small UAS safety issues and potential mitigation initiatives.  This joint government - industry collaboration is a key effort by FAA’s UAS Integration Office and engages leaders from government and a wide variety of industry participants.  

Going forward, however, perhaps one of the most important UAS efforts underway at FAA is drafting a remote identification rule.  The ability to remotely identify UAS operators and connect them with a UAS in flight will be a crucial stepping stone for UAS traffic management and will facilitate what we envision as high volume, safe, and secure low-altitude UAS operations.  Congress recognized the importance of remote identification when it enacted the FAA Extension, Safety, and Security Act of 2016.  That Act laid the foundation for the FAA’s work with operators and our security partners to realize the importance of remote identification and to reach a consensus on how to address it.  More recently, the FAA Reauthorization Act of 2018 provided the FAA with additional authority to move ahead with work on universal registration and remote identification—both of which are critical to the success of commercial UAS operations and safe and secure UAS integration more broadly. 

Remote identification is fundamental to both safety and security of UAS operations.  Remote identification will be necessary for routine beyond visual line-of-sight operations and operations over people, package delivery, operations in congested airspace, and for the continued safe operation of all aircraft in shared airspace.  It will also be foundational for the advancement of automated passenger or cargo-carrying air transportation—what is often referred to as Urban Air Mobility.  From a security perspective, remote identification is vital to enabling us to connect a suspect UAS to its control station location and to identify the registered owner of a suspect UAS.  With universal remote identification, the FAA, our national security partners, and state and local law enforcement will be better able to locate and identify a UAS operator, determine if a UAS is being operated in an unsafe, unauthorized, or criminal manner, and take appropriate action if necessary.  The FAA is committed to establishing remote identification requirements as quickly as possible. 

Congress has recognized that integration of UAS into the NAS will require dedicated traffic management.  In 2016, Congress granted authority to the National Aeronautics and Space Administration and the FAA to conduct research and a pilot program for Unmanned Aircraft Systems Traffic Management (UTM).  UTM is essentially a set of concepts and tools being developed to safely de-conflict and facilitate dense low-altitude UAS operations.  In 2018, Congress provided continued broad authority for UTM implementation, which will allow the FAA to continue its important work to balance the needs of all system users and ensure that UAS are safely and securely integrated into the NAS.  DOD, DHS and other national security partners have joined in the development of UTM concepts to support their missions.  The FAA is already implementing prototype foundational UTM capabilities such as the Low Altitude Authorization and Notification Capability (LAANC), which gives UAS operators the ability to request and receive near real-time response from the FAA to authorize operators to quickly plan and execute their flights in controlled airspace.

We are also using our existing airspace authority to address concerns about unauthorized UAS operations over certain national security-sensitive federal facilities.  To date, we have restricted UAS flights over military installations and vessels, sensitive energy facilities, and iconic landmarks, like the Statue of Liberty, Hoover Dam, and Mount Rushmore, in the interest of national security.  To ensure the public is aware of these restricted locations, we created on the FAA website an interactive map and repository of geospatial data used by UAS Service Suppliers and others, and we have updated our B4UFLY mobile app to include a warning to users in close proximity to these sites.  This work is also informing our efforts to determine the most efficient and effective way to implement section 2209 of the FAA Extension, Safety, and Security Act of 2016, which will establish a process for critical infrastructure owners to petition the FAA for UAS-specific flight restrictions over their facilities.

Counter-UAS Authority

Through the Fiscal Year 2017 and 2018 enactments of the annual National Defense Authorization Act, Congress provided DOD and the DOE with authority to respond to UAS that pose a threat to designated facilities and assets.  To ensure that C-UAS systems are operated safely in the NAS, Congress requires close FAA coordination with DOD and DOE to define what actions constitute a credible threat, develop a concept of operations for employing C-UAS systems, analyze and mitigate the spectrum impact of selected systems, and draft notification procedures and reporting requirements.  Pursuant to similar authority contained in the FAA Reauthorization Act of 2018, DOJ and DHS are also working closely with the FAA to ensure that UAS detection and mitigation technologies are tested, evaluated, and deployed in a manner that minimizes adverse impacts on airspace access, air navigation services, avionics, and other systems that ensure safe and efficient operations in the NAS, while also protecting individuals’ privacy and civil liberties. 

The FAA’s role in supporting our partner agencies’ research and eventual use of C-UAS technologies is to ensure that the safety and overall efficiency of the NAS is not compromised while facilitating their security responses.  The FAA must be involved in deployment of C-UAS technology at each fixed location, and for ad hoc and mobile operations.  We must conduct specific, data intensive analyses for each potential deployment of C-UAS to ensure the concept of operations balances the need for operator notification, airspace access, and appropriate airspace safety mitigations with the protective missions of our security partners.  Neither the FAA nor our partner agencies want to jeopardize aviation safety or interfere with compliant UAS operations.  In order to strike that balance, the FAA will continue working closely with all of our partner agencies as they deploy C-UAS technology at sensitive facilities and to cover high-risk operations and assets in the United States.  We worked through many of the toughest aspects of C-UAS deployment with DOD and DOE and are now sharing these processes and procedures with DHS and DOJ in order to expedite their implementation. 

C-UAS in the Airport Environment

Section 2206 of the FAA Extension Safety, and Security Act of 2016 required the FAA, working with DHS and other relevant federal agencies, to evaluate UAS detection technology at airports. From February 2016 through December 2017, the FAA and our partner agencies observed and assessed UAS detection technologies operating at domestic airports in Atlantic City, New York City, Denver, and Dallas-Fort Worth.  Through this important work, the FAA learned that the airport environment presents several unique challenges to the effective use of such technologies.  The technical readiness of the systems, available at the time, combined with a multitude of other factors, such as geography, interference, location of the majority of reported unauthorized UAS sightings, and the cost of deployment and operation, demonstrate that more testing, evaluation, technology development, and sensor integration is required for effective use in domestic civil airport environments.

In view of these results, the FAA believes other actions, such as education and outreach in the local community, as well as implementation of remote identification requirements, offer effective and cost-efficient options to address many of the concerns related to non-compliant UAS operations on and around airports and air traffic patterns.  That said, with the December 2018 protracted UAS disruption at Gatwick Airport, and other disruptions at airports around the world and in the United States, we understand and share the concerns of airport sponsors and our security partners regarding the potential safety hazards and security threats presented by errant or malicious UAS in the airport environment.  A number of airport sponsors have acquired or are pursuing possible acquisition of UAS detection systems for their airports. In an effort to make sure such activity is conducted in a safe and coordinated manner, in early May, the FAA sent informational correspondence to airport sponsors, which included information to support informed airport decision-making regarding the potential issues surrounding the demonstration or installation of UAS detection systems at airports (including the legal uncertainties posed by certain UAS detection systems), answers to some frequently asked questions, and technical considerations that the FAA has used to assess the readiness of UAS detection technologies.^[4]  The FAA wants to coordinate with airports that plan to use UAS detection systems to ensure deployment and use does not create interference or obstruction with aviation safety and efficiency systems at the airport.

Another serious consideration is the quality and timeliness of data provided from privately developed and purchased detection systems.  Poor quality information could lead to a reaction that is more detrimental than the errant UAS itself.  Such information could cause a significant distraction to air traffic control and create unnecessary delays.  Detection systems would be a tool for airports to determine if there is in fact a UAS in their airspace. That detection is the first step in determining whether a UAS poses a threat. This underscores the importance of implementing remote identification.  Remote identification will provide critical information to help determine the errant UAS operator’s intent.  In addition, it is imperative that airports develop and coordinate risk-based operational response plans with relevant airport stakeholders, including the FAA, the Transportation Security Administration, and airport law enforcement, to ensure safety hazards or disproportionate efficiency impacts are not created when attempting to respond to a potential security risk.

In the FAA’s May communication with airport sponsors, the Agency also reiterated its objection to the use of UAS mitigation systems by any public or private sector entity outside the four federal Departments that have been provided statutory authority for C-UAS.  Given the impacts many UAS mitigation technologies can have on the safety and efficiency of manned aircraft operations, compliant unmanned aircraft, and the provision of air navigation services, the FAA does not currently endorse the general use of any UAS mitigation technology on or around an airport.  The use of mitigation technology could introduce more disruption and safety risk than the suspect UAS operation, the very thing its use is intended to counter. 

However, given the events in Gatwick, there is no doubt about the significant operational and economic impacts a persistent UAS disruption can have in the airport environment and the need to be able to not only detect, identify, and track a disruptive UAS but also to be able to take action to end the disruption.  The FAA along with our federal security partners have formulated a concept of operations (CONOPS) for a National Federal Response plan through which current federal C-UAS authorities and existing federal C-UAS equipment can be rapidly projected into a major U.S. airport experiencing a persistent operational disruption due to an unauthorized UAS operation. This CONOPS has been socialized with airport and airline associations and should be finalized for implementation soon.

While there are a number of UAS detection and mitigation technologies in the marketplace, relatively limited testing and evaluation of these systems has been conducted at airports and in other domestic civil environments due in large part to legal constraints.  The efficacy of their performance and the collateral impacts of their use have not been documented sufficiently to provide confidence in their purchase or use.  The 2018 FAA Reauthorization Act directed the FAA to undertake several pilot program activities related to testing and evaluation of UAS detection and mitigation technology, including at airports (Section 383) and to support safety enforcement (Section 372).  In addition, the FAA was directed to establish standards for the use of C-UAS systems and to develop a plan for permitting, authorizing, or allowing the use of such systems in the NAS (Section 383). The Agency is currently developing plans and milestones for these efforts.

Enforcement

The interagency work to address the security challenges presented by UAS appropriately has been focused on the risks presented by criminal operations.  To date, however, the FAA and our security partners assess that a preponderance of the non-compliant UAS operations that have occurred are likely errant with no malicious intent.  These errant operations present a safety concern, which the FAA is addressing in a number of ways.  First, public education and outreach are key to reducing these incidents.  Efforts such as the “Know Before You Fly” information campaign and the small UAS registration process serve as opportunities to help UAS operators understand the rules and responsibilities for flying an aircraft in the NAS.  The Agency is also working to implement the requirements of Section 349 of the 2018 FAA Reauthorization Act, which, among other things, provided the FAA with authority to require knowledge testing of recreational users.  Section 349 also requires recreational flyers to receive authorization from the FAA to fly in controlled airspace and provides better clarity on authorized operations.  In the future, the FAA anticipates opening the LAANC system to recreational pilots to allow users the ability to efficiently request and receive authorization to operate in controlled airspace.

That said, if an operator is unwilling or unable to comply with applicable regulations, or is deliberately flouting the regulations, the FAA will not hesitate to take enforcement action.  We have a range of civil enforcement tools available to address a violation of federal regulations—from warning letters to civil penalties, and, in the case of an FAA certificate holder, suspension or revocation of that certificate.  Civil penalties range from a maximum per violation penalty of $1,466 for individual operators to $32,666 for large companies.  Congress also gave the FAA authority to assess civil penalties of up to $20,408 for interfering with law enforcement, first responders, or wildfire fighting operations.  The FAA may take enforcement action against anyone who conducts an unauthorized UAS operation or who operates a UAS in a way that endangers the safety of the NAS.  Since the promulgation of 14 CFR part 107 (August 2016), the FAA has initiated more than 35 legal enforcement actions for unauthorized UAS operations

The FAA also supports criminal investigation and enforcement actions by federal, state, local, tribal and territorial law enforcement agencies through its Law Enforcement Assistance Program (LEAP) and as part of its airspace security planning for sensitive events such as this year’s Super Bowl.  LEAP special agents and the FAA’s operations security personnel engage in extensive outreach and education efforts that include providing guidance on the FAA’s website to assist the law enforcement community in responding to UAS incidents and hosting monthly UAS information webinars.  Law enforcement officials are often in the best position to detect and deter unsafe and unauthorized UAS operations, and we rely heavily on their reports to provide us with actionable information concerning these incidents.  Accordingly, the FAA works closely with these agencies to develop and implement airspace security plans to protect sensitive events, provide them with investigative support and information, as well as to provide a communications link where these law enforcement agencies can pass along reports and receive assistance in a timely manner.

Cyber and Data Security Risks

While security risks posed by the malicious use of UAS are usually the focus of our discussions with critical infrastructure owners and security partners, increasingly there are concerns about threats to the safe and secure use of UAS due to cyber and data security risks.  The FAA considers cyber and data security risks and mitigations in every aspect of our mission, including as they apply to aircraft certification and systems as well as to protection of our own air navigation services infrastructure.  As FAA does with manned aviation, the Agency takes a risk based approach regarding system and data protection for UAS.  While UAS are aircraft, they are also like so many highly computerized devices we use in our professional and personal lives.  They can collect data and connect to the internet where information systems and data can be vulnerable to misuse if they are not adequately protected.  UAS operators, like computer users, need to be aware of what data is on their systems and consider what level of protection is required.  The FAA strongly recommends that UAS operators read the user licensing agreements for their UAS and consider whether the data access, sharing, and protection policies the manufacturer has in place are adequate or whether their data sensitivity necessitates additional protection from disclosure and misuse.  The FAA is also looking at agreements the Agency has with non-federal UAS service suppliers to ensure data transparency, sovereignty, and protection requirements are included.  Lastly, the FAA continues to work with its federal national security partners to identify and address cyber and data security threats to aviation generally, including those specifically related to UAS.  

Conclusion

A robust security framework is critical to advancing the Administration’s goal to fully integrate UAS into the NAS.  By enabling federal security and federal law enforcement agencies to detect and mitigate UAS threats and risks posed by errant or malicious UAS operations, and by working with operators to develop the technology to help minimize the risks posed by UAS, the United States will continue to lead the way in UAS innovation, and offer the safest and most efficient aviation system in the world.  Working together, we are confident we can balance safety and security with innovation.  We thank the Committee for its leadership on this issue, and we look forward to working with you as we continue to safely, securely, and efficiently integrate UAS into the NAS and solidify America’s role as the global leader in aviation.

This concludes my statement.  I will be happy to answer your questions at this time.

Review of Fiscal Year 2020 Budget for the Coast Guard and Maritime Transportation Programs

STATEMENT OF MARK BUZBY

ADMINISTRATOR MARITIME ADMINISTRATION

U.S. DEPARTMENT OF TRANSPORTATION

BEFORE THE

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION

U.S. HOUSE OF REPRESENTATIVES

HEARING ON “REVIEW OF FISCAL YEAR 2020 BUDGET FOR THE COAST GUARD AND MARITIME TRANSPORTATION PROGRAMS”

May 21, 2019

Good morning, Chairman Maloney, Ranking Member Gibbs and members of the Subcommittee.  I appreciate the opportunity to testify this morning on the President’s Fiscal Year (FY) 2020 budget priorities for the Maritime Administration (MARAD).  MARAD’s statutory mission is to foster, promote, and develop the United States merchant marine and maritime transportation industry to meet the economic and security needs of the Nation.  This budget request furthers that mission by investing in U.S. mariner training, supporting programs that help U.S.-flag commercial vessels compete globally, and maintaining sealift readiness to meet national security requirements.

FY 2020 BUDGET REQUEST

The United States is – and must remain – a maritime nation. A strong, resilient, reliable and efficient marine transportation system is required to keep the United States competitive in the global economy and to maintain our military strength.  MARAD’s programs strengthen and promote the U.S. merchant marine industry to ensure sealift capacity is available to support our defense and economic security needs.

The number of U.S.-flag vessels operating in international trade has been at historic lows over the past several years.  Of approximately 50,000 large, oceangoing commercial vessels operating around the world today, only 181 fly the U.S. flag.  Of those, 81 vessels operate exclusively in international trade.  The remaining 100 operate almost exclusively in domestic (“Jones Act”) trade.  These U.S.-flag vessels are critical to the employment base for mariners with the unrestricted credentials and training required to crew Government ships used to deploy and sustain our armed forces around the world.  As the fleet dwindles, so does the employment base for U.S. merchant mariners and the U.S. shipbuilding and repair industry, which are all essential components of national security. In addition, ensuring our capability to participate as a nation in international maritime commerce is a critical component to remaining globally and economically competitive.  Without U.S.-flag vessels operating in international trade, the U.S. would become completely reliant on foreign-flag shipping services.

The Budget requests a total of $682.5 million to support MARAD’s programs in FY 2020.  These resources will focus on maintaining the competitiveness of the U.S.-flag internationally trading commercial fleet and training the next generation of well-qualified merchant mariners.  MARAD remains committed to marine transportation policies that improve security, address our Nation’s critical maritime infrastructure gaps, and leverage technology to meet the needs and challenges of the marine transportation industry.  MARAD works in a variety of areas involving shipyards, ports, waterways, ships and shipping, vessel operations, national security and strategic mobility, ship disposal, and maritime education.  A summary of the FY 2020 request is provided below.

NATIONAL SECURITY

The U.S. merchant marine is a fundamental component of our national defense strategy.  Our strategic sealift relies on a Government-owned fleet and assured access to commercially operated U.S.-flag vessels, as well as the intermodal networks maintained by these vessel operators, to transport equipment and supplies to deploy and sustain our military forces anywhere in the world.  Critical to the operation of both Government-owned and commercial U.S.-flag vessels is an adequate supply of qualified U.S. mariners to crew them.  Currently, we face significant readiness challenges due to aging Government-owned vessels, historically low numbers of U.S.-flag vessels operating in international trade, and ensuring we have a sufficient number of qualified U.S. mariners that would be needed in the event of a long-term national emergency. I am concerned that the current fleet size could impact our ability to quickly assemble an adequate number of qualified mariners with the proficiency to operate large ships (unlimited horsepower and unlimited tonnage) needed for surge and sustainment sealift operations during a mobilization that lasts more than six months.  We may be short of the number of mariners needed to meet crewing requirements beyond those first six months.

Maritime Security Program (MSP)

For FY 2020, $300 million is requested for the MSP, providing the full authorized stipend level of $5 million for each of the 60 ships enrolled in the program.  The Maritime Security Act of 1996 established the MSP, which ensures access to 60 active, commercially viable, militarily useful, privately owned U.S.-flag vessels and crews operating in the international trade, and the necessary global intermodal logistics networks to move military equipment and supplies during armed conflict or national emergency.  This program also facilitates critical employment for up to 2,400 U.S. merchant mariners qualified to sail on oceangoing vessels, some of whom would be called upon to crew the Government-owned fleet when those vessels are activated, and approximately 5,000 shore side maritime professionals each year. Participating MSP operators commit to making their ships and multibillion-dollar global networks of intermodal facilities and commercial transportation resources for service to the Department of Defense (DOD) during times of war or national emergency.

Overall, the MSP fleet’s military capacity is at the highest level in the program’s history.  Being at full capacity bolsters the ability of MARAD and the U.S. merchant marine to meet DOD mission requirements.  The ships and crews receiving MSP stipends have supported every U.S. conflict since its inception in 1996, including Operations Enduring Freedom and Iraqi Freedom, by providing cargo preference-contracted DOD transportation services.  These vessels stand ready to play a vital role in support of U.S. military operations worldwide.

National Defense Reserve Fleet (NDRF) and Ready Reserve Force (RRF)

MARAD maintains a fleet of Government-owned vessels in the NDRF, which include training ships on loan to the six state maritime academies (SMAs) and the U.S. Merchant Marine Academy (USMMA or Academy).  The fleet includes 46 RRF vessels that are maintained and ready for operation within five or ten days for transport of military cargo to critical areas of operation.  In addition to providing strategic sealift support for DOD, these RRF vessels are relied upon to provide support services to emergency response personnel, such as meals and berthing, and deliver relief supplies, equipment, vehicles and emergency personnel to impacted disaster areas during national emergencies, including severe weather events.  Our Nation has called upon RRF and NDRF vessels to respond to several recent disasters providing support for thousands of emergency responders.

The FY 2020 Budget for the DOD requests $352 million for MARAD to maintain the RRF.  Funds will allow MARAD to continue to provide ready surge sealift support and special mission vessels from the RRF fleet, and also maintain MARAD’s NDRF fleet mooring sites.  This request includes an increase from FY 2019 that is necessary for maintaining the aging RRF fleet of ships, which have an average age of more than 44 years and significantly increased maintenance, repair, and regulatory compliance costs due to more stringent vessel inspections.

For the past year, we have struggled to maintain readiness levels across the fleet.  Older, increasingly obsolete equipment and systems require more time and money to repair or replace, if replacement parts, equipment and systems are even available.  Thus, the escalating cost of service life extensions is an ongoing concern.  Requested funding is needed to complete necessary repairs to comply with new regulatory requirements, such as upgrading and installing enclosed lifeboats, addressing exhaust emissions, and treating ballast water.  MARAD is working with the U.S. Transportation Command (USTRANSCOM) and the U.S. Navy to address the urgent need for recapitalization of the RRF to ensure the readiness of these 46 ships.  Long-term, MARAD supports the Navy’s surge sealift recapitalization strategy, which includes a combination of targeted service life extensions, acquiring and converting used vessels, and building new sealift vessels in U.S. shipyards.

MARITIME EDUCATION AND TRAINING

MARAD provides funding and oversight for mariner training programs to produce highly skilled U.S. Coast Guard (USCG) credentialed officers for the U.S. merchant marine.  It takes many years of training to develop the necessary mariner competencies for deck and engineering officer positions on large vessels in international trade.  An adequate pool of U.S. merchant mariners is vital to both the peacetime commercial success of the U.S.-flag fleet and to crew Government-owned surge sealift vessels to deploy and sustain U.S. forces overseas in times of national emergency.

The USMMA and SMAs support our Nation with well-educated and trained merchant mariners entering the maritime industry who can serve in support of military operations, national emergencies, and humanitarian missions. The USMMA graduates an average of 225 USCG-credentialed merchant marine officers annually who hold an unlimited license available to crew U.S.-flag ocean-going ships.  Additionally, the combined six State Maritime Academies (SMAs) graduate approximately 900 USCG-credentialed merchant marine officers annually.

United States Merchant Marine Academy

The President’s FY 2020 Budget requests $82 million for the USMMA.  Of this amount, $78 million will support Academy operations, and $4 million will fund priority maintenance and repairs to the Academy’s facilities, grounds, and equipment.  These resources  will enable the Academy to effectively achieve its core responsibility to educate and train the next generation of outstanding leaders as shipboard officers at sea and commissioned officers in our active and reserve armed forces.  This funding will also support an approximately seven percent increase in the size of the regiment as the Academy gets back to the full student capacity following the completion of renovation of the barracks.

The USMMA is an accredited institution of higher education operating under the DOT and managed by MARAD.  The USMMA offers a four-year maritime-focused program, centered on rigorous academic and practical STEM-based technical training that leads to a Bachelor of Science degree, a USCG merchant mariner credential (MCC) with an unlimited tonnage or horsepower officer endorsement, and a commission (if offered) as an officer in the reserve or active Armed Forces.  Distinctly, USMMA graduates incur an obligation to serve five years as a merchant marine officer aboard U.S. documented vessels or on active duty with the U.S. Armed Forces or uniformed services.  If serving in the reserves, they must remain as a commissioned officer for eight years.

The Academy, MARAD, and DOT are committed to ensuring the safety of Midshipmen both on campus and during their sea year.  We have significantly improved Academy programs and procedures related to sexual harassment and sexual assault, and are making progress to instill a culture that does not tolerate such behavior.  I am pleased with the direction and momentum of change at the Academy, but am also cognizant that eliminating sexual assault and sexual harassment is an issue that requires consistent attention.  As such, addressing sexual harassment and sexual assault at the Academy and during sea year training remains a top priority for myself, our new Superintendent, RADM Jack Buono, and DOT leadership.  MARAD will work with USMMA and DOT leadership to not only continue to establish effective procedural safeguards to respond to sexual assault and harassment, but to also ensure USMMA adopts a proactive mindset to respond immediately to conduct that enables assault and harassment.  Proactive prevention measures are also critical to creating a learning environment that will enable the Academy to support MARAD’s strategic goal of a maritime workforce that draws from all communities across the Nation.

State Maritime Academies

In addition to providing oversight of the USMMA, MARAD provides funding assistance to six SMAs[1], which collectively graduate more than three-fourths of the entry-level merchant marine officers annually.  The President’s FY 2020 Budget includes $242.3 million for SMA program support.  This request includes $205 million for the construction of a third training ship. Unlike the USMMA, SMA cadets receive most of their sea time while sailing on board MARAD-provided training ships under instruction by their academy, with some training on commercial or military vessels.  The current SMA training ships are very old and must be replaced.  We appreciate the support Congress has provided for the School Ship recapitalization program, by appropriating funding for one vessel each in FY 2018 and FY 2019.  Since that first appropriation in March 2018, MARAD has developed and implemented an acquisition strategy, incorporated industry feedback into the ship design, and is well along in evaluating proposals to select a Vessel Construction Manager who will contract for the construction of the vessels.

Additionally, the request provides $30.1 million to maintain the six existing SMA training ships in accordance with the USCG and American Bureau of Shipping requirements, and training ship capacity-sharing measures to allow uninterrupted availability of mandatory at-sea training opportunities for SMA cadets.  Ensuring the continued availability of SMA training vessels is a critical need and high priority for MARAD.  Training ship maintenance work is increasingly critical and costly as the ships age and approach or exceed their designed service life.  MARAD will use the funds to sequence and address priority maintenance needs across all the training vessels, and to ensure that cost effective viable alternatives are available for SMAs that require additional training capacity.

Additionally, the request provides $2.4 million to fund the Student Incentive Program (SIP), which provides educational financial assistance to 75 new cadets each year (across all SMAs) who participate in this service obligation program.  SIP students must maintain an unlimited USCG credential for six years, fulfill a three-year service obligation to serve as a merchant marine officer aboard U.S. documented vessels, and serve in a reserve unit of an Armed Forces or uniformed service for eight years if a commission is offered. The Budget also includes $3 million for direct payments to provide for operational support to each of the six SMAs, and $1.8 million for training ship fuel payments.  The SMAs regard the SIP program and support for their training ships as among the most important recruiting tools to encourage potential cadets to pursue a merchant marine career. These programs and resources will also help ensure MARAD can fulfill its commitments to National security and supporting the growth of the Nation’s maritime workforce, by creating opportunities for individuals from all backgrounds to serve as mariners.

OTHER MARITIME PROGRAMS

Ship Disposal Program

The President’s FY 2020 Budget requests $5 million for the ship disposal program, including $3 million to maintain the Nuclear Ship SAVANNAH (NSS) in protective storage, according to Nuclear Regulatory Commission (NRC) requirements, while decommissioning of the vessel's defueled nuclear reactor, components, and equipment is in progress.  The ship disposal funding request also includes $2 million for staff and administrative program costs.

MARAD is the ship disposal agent for Federal government-owned merchant-type vessels of 1,500 gross tons or greater and has custody of non-retention ships in the NDRF.  When ships are determined to be no longer of sufficient value to merit the cost of further preservation, MARAD arranges for their responsible disposal, with priority emphasis on the disposal of vessels in the worst condition.  Currently, MARAD has seven obsolete NDRF vessels not yet under contract for disposal, which is a historic low. 

As a Federal licensee, MARAD is responsible for continuing the required protective storage activities for the NSS until decommissioning and license termination are complete.  Protective storage activities include radiological protection, vessel maintenance, lay berthing, and custodial care.  The program received funding for decommissioning in FY 2017 to initiate and complete Phase I, and additional funding in FY 2018 for Phase II and Phase III, fully funding the three-phased and seven-year decommissioning project.  Phase I is comprised of administrative and industrial activities that complete the prerequisites for commencement of the heavy engineering and industrial activities in Phase II.  Phase III is the final license termination period before release of the vessel to MARAD for final disposition.  All decommissioning and license termination activities are on track for completion ahead of the December 2031 required NRC deadline.

CONCLUSION

These programs represent MARAD’s priorities supported by the President’s Budget.  We will continue to keep this Subcommittee apprised of the progress of our program activities and initiatives in these areas in the coming year.

Mr. Chairman, thank you for the opportunity to present and discuss the President’s Budget for MARAD. I appreciate the Subcommittee’s continuing support for maritime programs and I look forward to working with you on advancing maritime transportation in the United States. I will be happy to respond to any questions you and the members of the Subcommittee may have.

Status of the Boeing 737 MAX

STATEMENT OF DANIEL K. ELWELL

ACTING ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION

BEFORE THE

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

UNITED STATES HOUSE OF REPRESENTATIVES

STATUS OF THE BOEING 737 MAX

MAY 15, 2019

Chairman DeFazio, Ranking Member Graves, Members of the Committee:

Thank you for the opportunity to appear before you today to discuss aviation safety and the issues surrounding the Boeing 737 MAX.  On behalf of the United States Department of Transportation and the Federal Aviation Administration, we would like to take this opportunity to, once again, extend our deepest sympathy to the families of the victims of the Ethiopian Airlines and Lion Air accidents. 

Safety is the core of the Federal Aviation Administration’s mission and our top priority.  With the support of this Committee, we have worked tirelessly to take a more proactive, data-driven approach to oversight that prioritizes safety above all else inside the FAA and within the aviation community that we regulate.  The result of this approach is that the United States has the safest air transportation system in the world.  Since 1997, the risk of a fatal commercial aviation accident in the United States has been cut by 94 percent.  And in the past ten years, there has been one commercial airline passenger fatality in the United States in over 90 million flights.  But, one fatality is one too many, and a healthy safety culture requires commitment to continuous improvement.

Our commitment to safety and fact-based, data-driven decision making has been the guiding principle in the FAA’s response to the two fatal accidents involving the Boeing 737 MAX airplane outside the United States.  Today, I would like to provide you with an overview of the FAA’s certification and oversight processes, our current actions with respect to the 737 MAX, and the steps that the FAA is taking to foster safety enhancements here and abroad.

The FAA is a Data-Driven Agency Focused on Safety

As the aerospace system and its components become increasingly more complex, we know that our oversight approach needs to evolve to ensure that the FAA remains the global leader in achieving aviation safety.  In order to maintain the safest air transportation system in the world, during the past two decades the FAA has been evolving from a prescriptive and more reactive approach for its safety oversight responsibilities to one that is performance-based, proactive, centered on managing risk, and focused on continuous improvement.  A key part of this transition has been the adoption of safety management systems, or SMS, within the FAA.  The evolution toward SMS began internally at the FAA more than 15 years ago, starting with the FAA’s Air Traffic Organization and expanding across the FAA to include all of our lines of business.  Consistent with recommendations of the International Civil Aviation Organization (ICAO), we have been working towards implementation of SMS in various sectors.  For example, as of March 9, 2018, scheduled commercial air carriers, regulated under 14 CFR part 121, are required to have an SMS.

Safety is not just a set of programs that can be “established” or “implemented.”  It is a way of living and working, and it requires the open and transparent exchange of information.  We know that it takes collaboration, communication, and common safety objectives to allow the FAA and the aviation community to come together, to identify system hazards, and to implement safety solutions.  This approach gives us knowledge that we would not otherwise have about events and risks.  Sharing safety issues, trends, and lessons learned is critical to recognizing whatever might be emerging as a risk in the system.  The more data we have, the more we can learn about the system, which in turn allows us to better manage and improve the system.

To be clear, the SMS approach does not diminish the FAA’s role as a safety regulator.  Any party that the FAA regulates remains responsible for compliance with the FAA’s regulatory standards, and the FAA does not hesitate to take enforcement action when it is warranted.

Aircraft Certification

Information sharing is a cornerstone of aviation safety and has significantly contributed to the United States’ outstanding safety record. One of the FAA’s core functions, aircraft certification, has always relied on the exchange of information and technical data.  The FAA certifies the design of aircraft and components that are used in civil aviation operations.  Some version of our certification process has been in place and served us well for over 60 years.  This does not mean the process has remained static.  To the contrary, since 1964, the regulations covering certification processes have been under constant review.  As a result, the general regulations have been modified over 90 times, and the rules applicable to large transport aircraft, like the Boeing 737 MAX, have been amended over 130 times.  The regulations and our policies have evolved in order to adapt to an ever-changing industry that uses global partnerships to develop new, more efficient, and safer aviation products and technologies.  What has not changed is that, for any new project, the FAA identifies all safety standards and makes all key decisions regarding certification of the aircraft.

The FAA focuses its efforts on areas that present the highest risk within the system.  The FAA reviews the applicant’s design descriptions and project plans, determines where FAA involvement will derive the most safety benefit, and coordinates its intentions with the applicant.  When a particular decision or event is critical to the safety of the product or to the determination of compliance, the FAA is involved either directly or through the use of our designee system.  

The use of designation, in some form, has been a vital part of our safety system since the 1920s. Congress has continually expanded the designee program since creation of the FAA in 1958, and it is critical to the success and effectiveness of the certification process.Under this program, the FAA may delegate a matter related to aircraft certification to a qualified private person.This is not self-certification; the FAA retains strict oversight authority.The program allows the FAA to leverage its resources and technical expertise while holding the applicant accountable for compliance. During the past few years, Congress has endorsed FAA’s delegation authority, including in the FAA Reauthorization Act of 2018, which directed the FAA to delegate more certification tasks to the designees we oversee.

In aircraft certification, both individual and organizational designees support the FAA.The FAA determines the level of involvement of the designees and the level of FAA participation needed based on many variables.These variables include the designee’s understanding of the compliance policy; consideration of any novel or unusual certification areas; or instances where adequate standards may not be in place.

The Organization Designation Authorization (ODA) program is the means by which the FAA may authorize an organization to act as a representative of the FAA under strict FAA oversight.   Currently, there are 79 ODA holders.  ODA certification processes allow FAA to leverage industry expertise in the conduct of the certification activities and focus on important safety matters.  The FAA has a rigorous process for issuing an ODA and only grants this authorization to mature companies with a proven history of designing products that meet FAA safety standards.  ODA holders must have demonstrated experience and expertise in FAA certification processes, a qualified staff, and an FAA-approved procedures manual before they are appointed.  The FAA delegates authority on a project-by-project basis, and the manual defines the process and procedures to which the ODA must adhere when executing the delegated authority.   The ODA holder is responsible to ensure that ODA staff are free to perform their authorized functions without conflicts of interest or undue pressure.

There are many issues that will always require direct FAA involvement, including equivalent level of safety determinations, and rulemakings required to approve special conditions.  The FAA may choose to be involved in other project areas after considering factors such as our confidence in the applicant, the applicant’s experience, the applicant’s internal processes, and confidence in the designees. 

Something that is not well understood about the certification process is that it is the applicant’s responsibility to ensure that an aircraft complies with FAA safety regulations.  It is the applicant who is required to develop aircraft design plans and specifications, and perform the appropriate inspections and tests necessary to establish that an aircraft design complies with the regulations.  The FAA is responsible for determining that the applicant has shown that the overall design meets the safety standards.  We do that by reviewing data and by conducting risk-based evaluations of the applicant's work. 

The FAA is directly involved in the testing and certification of new and novel features and technologies.  When a new design, or a change to an existing design, of an aircraft is being proposed, the designer must apply to the FAA for a design approval.  While an applicant usually works on its design before discussing it with the FAA, we encourage collaborative discussions well in advance of presenting a formal application.  Once an applicant informs the FAA of the intent to develop and certify a product, a series of meetings are held both to familiarize the FAA with the proposed design, and to familiarize the applicant with the certification requirements.  A number of formal and informal meetings are held on issues ranging from technical to procedural.  Once the application is made, issue papers are developed to provide a structured way of documenting the resolution of technical, regulatory, and administrative issues that are identified during the process. 

Once the certification basis is established for a proposed design, the FAA and the applicant develop and agree to a certification plan and initial schedule.  In order to receive a type certificate, the applicant must conduct an extensive series of tests and reviews to show that the product is compliant with existing standards and any special conditions, including lab tests, flight tests, and conformity inspections.  These analyses, tests, and inspections happen at a component-level and an airplane-level, all of which are subject to FAA oversight.  If the FAA finds that a proposed new type of aircraft complies with safety standards, it issues a type certificate.  Or, in the case of a change to an existing aircraft design, the FAA issues an amended type certificate.

Facts Concerning the Boeing 737 MAX

While the FAA is always striving to improve safety, the certification processes described above are extensive, well-established, and have consistently produced safe aircraft designs for decades.  The Boeing Company has designed and built 14 variations of its original model 737 since the FAA issued the original type certificate in 1967.  Following standard certification procedures, and based on the information Boeing provided, the FAA determined in February 2012 that the 737 MAX qualified as an amended type certificate project eligible for management by the Boeing ODA. The formal application was submitted in June 2012.  Under such an arrangement, FAA subject matters experts are directly involved in safety related aspects of the project.  For example, the FAA was directly involved in the System Safety Review of the Maneuvering Characteristics Augmentation System (MCAS). 

The process from initial application to final certification took five years; the 737 MAX was certified in March 2017.  The process included 297 certification flight tests, some of which encompassed tests of the MCAS functions.  FAA engineers and flight test pilots were involved in the MCAS operational evaluation flight test.  During the FAA’s continued oversight of airworthiness standards, as we obtain pertinent information, identify potential risk, or learn of a system failure, we analyze it, mitigate the risk, update the certification requirements and require operators to implement the mitigation.

737 MAX Accidents and the Decision to Ground the Fleet

On October 29, 2018, a Boeing 737 MAX 8 operated by Lion Air as flight JT610 crashed after taking off from Soekarno-Hatta Airport in Jakarta, Indonesia.  Flight JT610 departed from Jakarta with an intended destination of Pangkal Pinang, Indonesia.  It departed Jakarta at 6:20 a.m. (local time), and crashed into the Java Sea approximately 13 minutes later.  One hundred and eighty-four passengers and five crewmembers were on board.  There were no survivors.  An Indonesian-led investigation into the cause of this accident is ongoing, supported by the National Transportation Safety Board (NTSB), FAA, and Boeing.  A preliminary report prepared by the Indonesian National Transportation Safety Committee was released in November 2018.

On November 7, 2018, based on all available and relevant information, including evidence from the Lion Air accident investigation and analysis performed by Boeing, the FAA issued an Emergency Airworthiness Directive.  The airworthiness directive requires operators of the 737 MAX to revise their flight manuals to reinforce and emphasize to flight crews how to recognize and respond to uncommanded stabilizer trim movement and MCAS events.  The FAA continued to evaluate the need for software and/or other design changes to the aircraft including operating procedures and training as additional information was received from the ongoing Lion Air accident investigation.  On January 21, 2019, Boeing submitted a proposed plan for an MCAS software enhancement to the FAA for certification.  To date, the FAA has tested a prototype of this enhancement to the 737 MAX flight control system in both the simulator and the aircraft.  FAA flight test engineers and flight test pilots performed a preliminary evaluation of the prototype which included aerodynamic stall situations and recovery procedures.

On March 10, 2019, Ethiopian Airlines flight ET302, also a Boeing 737 MAX 8, crashed at 8:44 a.m. (local time), six minutes after takeoff.  The flight departed from Bole International Airport in Addis Ababa, Ethiopia with an intended destination of Nairobi, Kenya.  The accident site is near Bishoftu, Ethiopia.  One hundred and forty-nine passengers and eight crewmembers were on board.  None survived.  An Ethiopian-led investigation into the cause of this accident is ongoing, supported by the NTSB, FAA, and Boeing.  A preliminary report prepared by the Aircraft Accident Investigation Bureau of Ethiopia was released in April 2019. 

Following the second accident, the FAA gathered all of the data it had, regarding 737 MAX operations in the United States and continued to review information from the investigation as it became available.  On March 11, 2019, the FAA issued a Continuous Airworthiness Notification to the International Community (CANIC) for 737 MAX operators.  The CANIC included a list of all of the activities the FAA had completed in support of the continued operational safety of the 737 MAX fleet.  These activities included the airworthiness directive issued on November 7, 2018, ongoing oversight of Boeing’s flight control system enhancements, and updated training requirements and flight crew manuals.

After issuing the CANIC, the FAA continued to evaluate all available data and aggregate safety performance from operators and pilots of the 737 MAX, none of which provided any data to support grounding the aircraft.  Also, at that time, other civil aviation authorities had not provided any data to the FAA that warranted action.   The FAA’s initial review of flight safety data for U.S. operators showed no systemic performance issues and provided no basis to order grounding the aircraft.

On March 13, 2019, however, the Ethiopian Airlines investigation developed new information from the wreckage concerning the aircraft’s configuration just after takeoff that, taken together with newly refined data from satellite-based tracking of the aircraft’s flight path, indicated some similarities between the Ethiopian Airlines and Lion Air accidents that warranted further investigation of the possibility of a shared cause that needed to be better understood and addressed.  Accordingly, the FAA made the decision to ground all 737 MAX airplanes operated by U.S. airlines or in U.S. territory pending further investigation, including examination of information from the aircraft’s flight data recorders and cockpit voice recorders.

Post-Grounding Actions

On March 19, 2019, Secretary Chao asked the U.S. Department of Transportation’s Inspector General to conduct an audit of the certification for the Boeing 737 MAX 8, with the goal specifically to compile an objective and detailed factual history of the activities that resulted in the certification of the Boeing 737 MAX 8 aircraft.  That audit is ongoing, with the cooperation of the FAA.

On March 20, 2019, the FAA issued a second CANIC with updated information for operators of the 737 MAX.  Specifically, the CANIC notified operators that Boeing had begun work on a Service Bulletin that would specify the installation of new flight control computer operational program software and had developed flightcrew training related to this software. Boeing is still to submit the final software package for certification.  The FAA’s ongoing review of this software installation and training is an agency priority, as will be the roll-out of any software, training, or other measures to operators of the 737 MAX.

On March 25, 2019, Secretary Chao announced the establishment of a Special Committee to review the FAA’s procedures for the certification of new aircraft, including the Boeing 737 MAX.  The Special Committee to Review FAA’s Aircraft Certification Process is an independent body whose findings and recommendations will be presented directly to the Secretary and the FAA Administrator. The Special Committee is formed within the structure of the Safety Oversight and Certification Advisory Committee (SOCAC) created by section 202 of the FAA Reauthorization Act of 2018.

Further, on April 2, 2019, the FAA announced it was establishing a Joint Authorities Technical Review (JATR) to conduct a comprehensive review of the certification of the automated flight control system on the Boeing 737 MAX.  The JATR is chaired by former NTSB Chairman Christopher Hart and comprises a team of experts from the FAA, National Aeronautics and Space Administration (NASA), and the aviation authorities of Australia, Brazil, Canada, China, the European Union, Indonesia, Japan, Singapore, and the United Arab Emirates.  On April 29, the JATR initiated its review, with members tasked to provide the FAA with their findings regarding the adequacy of the certification process and any recommendations to improve the process.  Completion of the JATR’s work is not a prerequisite for returning the 737 MAX to service.

Additionally, on April 12, 2019, the FAA convened a meeting at the agency’s Washington, D.C. headquarters with safety representatives of the three U.S.-based commercial airlines that have the Boeing 737 MAX in their fleets, as well as the pilot unions for those airlines.  The meeting covered three major agenda items: a review of the publicly available preliminary findings of the investigations into the Lion Air and Ethiopian Airlines accidents; an overview of the anticipated software enhancements to the MCAS system; and, an overview of pilot training.  Each presentation corresponding to the agenda, delivered by FAA subject matter experts, allowed for an open exchange between all participants.  This meeting was an opportunity for the FAA to hear individual views from operators and pilots of the 737 MAX as the agency evaluates what needs to be done before the FAA makes a decision to return the aircraft to service in the United States.

The FAA recently solicited public comment on a draft report prepared by the FAA’s Boeing 737 MAX Flight Standardization Board (FSB).  The FSB is a panel that FAA utilizes to evaluate and determine the sufficiency of proposed training developed by Boeing and related to the proposed software enhancements for the 737 MAX aircraft.  An FSB is generally comprised of qualified pilots from FAA’s Certificate Management Offices, foreign authorities, and industry.     The FSB report outlines the minimum guidelines for an air carrier training program. The comment period on the draft report has been extended multiple times to ensure ample opportunity for public input.  The FAA will review this input before making a final assessment.

On May 6, 2019, the FAA initiated a multi-agency Technical Advisory Board (TAB) review of the MCAS software update and system safety assessment in order to determine sufficiency. The TAB consists of a team of experts from the U.S. Air Force, NASA, Volpe National Transportation Systems Center, and the FAA. None of the TAB experts have been involved in any aspect of the Boeing 737 MAX certification.  The TAB is charged with evaluating Boeing and FAA efforts related to the software update and its integration into the flight control system.  The TAB will identify issues where further investigation is required prior to approval of the design change.  Although the JATR is broadly considering certification of the flight control systems, the TAB is evaluating the proposed technical solutions. The TAB’s recommendations will directly inform the FAA’s decision concerning the 737 MAX fleet’s return to service.

On May 23, 2019, the FAA will host a meeting of Directors General of civil aviation authorities from around the world to discuss the FAA’s activities toward ensuring the safe return of the 737 MAX to service.  This meeting is part of the FAA’s efforts to work with other civil aviation authorities to address specific concerns related to the 737 MAX, in keeping with the FAA’s longstanding cooperation with its international partners.   As recent events have reminded us, aviation does not have borders or boundaries.  The FAA is focused on continuous safety improvement here at home and internationally through our ongoing engagement with other civil aviation authorities and industry stakeholders throughout the world.  Aviation remains the safest mode of transportation in the United States and globally, and we advance this level of safety by sharing issues, trends, and lessons learned throughout the world.  The United States is the gold standard in aviation safety.  The FAA is resolute in its commitment to maintaining that standard.  In our quest for continuous safety improvement, the FAA welcomes external review of our systems, processes, and recommendations.  And the 737 MAX will return to service for U.S. carriers and in U.S. airspace only when the FAA’s analysis of the facts and technical data indicate that it is safe to do so.

This concludes my prepared statement.  I will be happy to answer your questions.

The State of Pipeline Safety and Security in America

Written Statement of
The Honorable Howard “Skip” Elliott
Administrator
Pipeline and Hazardous Materials Safety Administration

Before the U.S. house of representatives
Committee on Energy and Commerce
Subcommittee on Energy
The State of Pipeline Safety and Security in America

May 1, 2019

I.  Introduction

Chairman Rush, Ranking Member Upton, members of the Subcommittee, thank you for inviting me to testify today on the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration’s (PHMSA) pipeline safety program.  I appreciate this Committee’s strong support for strengthening pipeline safety across our country.

Our nation’s infrastructure keeps this great nation moving and helps to raise the standard of living for all Americans.  The natural gas and hazardous liquid pipelines PHMSA regulates are an essential component of our national infrastructure, safely transporting the energy products that are essential to our daily lives.  Like all DOT modes, PHMSA is guided by Secretary Chao’s four strategic goals of safety, infrastructure enhancements, innovation, and accountability. 

A.  PHMSA’s Mission

The mission of PHMSA is to protect people and the environment by advancing the safe transportation of energy products and other hazardous materials that are essential to our daily lives.  The need for safe and reliable energy infrastructure is growing.  Our nation is experiencing an energy renaissance, propelled largely by innovative production technologies and global demand for U.S. energy.

PHMSA’s pipeline safety program is responsible for the regulation and oversight of over 2.7 million miles of energy pipeline systems.  The vision of the pipeline safety program is straightforward: update or develop new regulations, policies, and guidance; improve our oversight to hold pipeline operators accountable; find innovative solutions to promote safety; and accommodate and encourage research into new and promising technologies.  Each of these goals ensure that pipeline infrastructure can continue to provide safe and reliable energy to our communities, homes, and businesses.

After working for decades in the freight rail industry, a great deal of it leading efforts to improve public safety and incident response, I have learned that safety is the result of effective, smart regulations that hold industry accountable, and reduce costs, when possible. 

PHMSA’s safety goal is zero pipeline accidents and its oversight philosophy is based on three fundamental tenets:

1. Establish minimum safety standards and take enforcement actions against operators not in compliance with these standards.
2. Ensure operators understand and manage the risks associated with their pipelines, including taking actions to prevent pipeline accidents and minimizing the impact of any accidents that occur.
3. Continually encourage and expect pipeline operators to improve their performance beyond minimum compliance with the regulations and continuously build a strong safety culture.

II. Progress on Mandates

Finalizing outstanding Congressional mandates remains a top priority.  PHMSA recognizes the concerns of this Subcommittee and is continuing to make progress on critical safety mandates.  Since June 2018, PHMSA completed and submitted reports to Congress on the Nationwide Integrated Pipeline Safety Regulatory Database, as well as a report on the Study on Propane Gas Pipeline Facilities.  Both reports were mandated in the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011.

Over the past year, PHMSA prioritized the rules it thought it could move quickly such as those for lithium batteries, plastic pipelines, and oil spill response plans for trains carrying crude oil.  These regulations are intended to advance public safety, while encouraging innovation and greater stakeholder awareness and collaboration.  These key rulemakings are detailed below.

Of the mandates from the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, PHMSA has seven of 42 mandates remaining.  Additionally, of the mandates from the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2016, PHMSA has four of 19 mandates remaining.

Together, of the 11 remaining mandates from the 2011 and 2016 Acts, three are tied to reports and other actions, and eight are tied to rulemaking efforts that PHMSA is continuing to make progress on under its established rulemaking process.

As Administrator, I am committed to doing everything I can to complete all the remaining rulemakings that address Congressional directives related to pipeline safety.  I believe completing these mandates will result in significant positive impacts to pipeline safety.

Completing rulemakings takes time simply because it is an iterative process that is designed to encourage maximum participation by all stakeholders, thus ensuring comprehensive rules that protect the public and stand up to cost/benefit scrutiny.  PHMSA holds public meetings and workshops prior to rulemakings, using the information gathered to craft the most effective rules possible.  Such collaboration, well in advance of the rulemaking process, allows PHMSA to identify concerns and potential solutions to allocate its scarce resources where they are needed most.

In addition to mandates, many of PHMSA’s rulemakings underway address important recommendations from the National Transportation Safety Board (NTSB), resulting from safety issues identified during accident investigations.  PHMSA’s rules also address recommendations from the U.S. Government Accountability Office (GAO) and the DOT Inspector General (IG), and the agency’s own safety findings.  PHMSA must make sure that its regulations account for known safety issues, technological feasibility, and cost effectiveness.

In short, a lot of work goes on behind the scenes to get a rule ready for publication, and PHMSA is making positive movement towards completing the safety critical mandates and addressing recommendations from Congress, the NTSB, GAO, and IG, as well as our own safety findings.

A.  Hazardous Liquid Rule

PHMSA understands the importance of moving forward its long-awaited Safety of Hazardous Liquid Pipelines rulemaking, which was included in the 2011 Act.  This rulemaking would amend the pipeline safety regulations to improve protection of the public, property, and the environment by closing regulatory gaps where appropriate.  In addition, this rule is intended to ensure that operators are increasing the detection and remediation of unsafe conditions, and mitigating the adverse effects of hazardous liquid pipeline failures. This rule is one of PHMSA’s highest priorities and is on track to be completed and published in 2019.[1]

B.  Gas Transmission Rule

PHMSA is also making significant progress toward finalizing its gas transmission and gathering pipeline rulemaking efforts.  This is intended to help close two very important open mandates related to the expansion of integrity management principles and requirements for operators to confirm the maximum allowable operating pressure of certain gas pipelines. These changes are expected to allow operators to assess more pipelines and better understand their systems’ conditions.

When finalizing the “Safety of Gas Transmission and Gathering Pipelines” notice of proposed rulemaking (NPRM), the proposed rule was under review for nearly 2 years.  Delays were largely due to the proposed rule being too big and unwieldy to move through the administrative process.   

Accordingly, PHMSA made the strategic decision to split the initial proposed rule into smaller, more manageable rulemaking actions.  The split will help PHMSA manage each individual rule more efficiently; and, most importantly, prioritize Congressional directives on gas pipelines.  Additionally, while working to complete the Congressional mandates this rulemaking will address, PHMSA is also using its resources to incorporate and advance several recommendations from the NTSB and GAO as part of the rule.

PHMSA’s goal is to publish the final rule addressing Congressional directives this year,[2] and will continue working to ensure that the other rules follow closely behind.

C.  Valve and Rupture Detection Rule

PHMSA is developing an NPRM to address leak and rupture detection.[3] The Shutoff Valve and Rupture Detection rule will meet the goals of two Congressional directives.  It proposes revisions to the pipeline safety regulations for newly constructed or entirely replaced natural gas transmission and hazardous liquid pipelines.  In doing so, the rule is intended to improve rupture mitigation and shorten the time it takes to shut down a pipeline segment.  The rule will also address recommendations from the NTSB and is expected to help reduce the serious consequences of large-volume releases of natural gas and hazardous liquids.

PHMSA is proposing standards for operators to utilize rupture detection metrics for valve placement to improve incident response in populated or environmentally sensitive areas.  Rupture response metrics would focus on mitigating large release events that have a greater potential consequence.  This rulemaking is currently under comprehensive review at the Department and we are working to move it forward as expeditiously as possible.

D.  Plastic Gas Pipe Rule

This rule, published in November 2018, updated pipeline safety regulations to allow for the modernization of plastic pipe material, design, and construction standards.  This final rule also responds to plastic pipe installation and operational safety concerns identified by federal and state field inspectors.  With this rule, new or replaced local gas distribution systems will be built and maintained with the most advanced pipeline technology, which is expected to greatly improve public safety for local communities.

E.  Hazardous Materials Transportation Directives from Congress

PHMSA also regulates the safety of hazardous materials by all modes of transportation, including by highway, railroad, vessel, and airways.  Although PHMSA’s two program offices are authorized separately, we are one PHMSA.  We share resources, knowledge, and most importantly, we share the same safety goals.

On February 28, 2019, PHMSA, in coordination with the Federal Railroad Administration, issued a final rule that amends the Hazardous Materials Regulations requirements for comprehensive oil spill response plans and information sharing. This rule was requested by Congress in the fiscal year 2016 Consolidated Appropriations Act.  The rulemaking sets safety standards for rail operator response to incidents involving crude oil transported by rail.

Additionally, on March 6, 2019, PHMSA, in collaboration with the Federal Aviation Administration (FAA), published an interim final rule (IFR) for the safe transport of lithium batteries by aircraft.  The IFR is first of PHMSA’s completed actions in addressing directives included in the FAA Reauthorization Act of 2018.  This IFR prohibits the transport of lithium ion cells or batteries as cargo on passenger aircraft.  In addition, the IFR requires lithium ion cells and batteries to be shipped at not more than a 30 percent state of charge aboard cargo-only aircraft.  The IFR is intended to strengthen safety for the traveling public by addressing the unique challenges lithium batteries pose in transportation.

F.  Regulatory Reform

While PHMSA works to complete its regulatory agenda, the agency is also committed to improving the effectiveness of our regulatory program by conducting a comprehensive evaluation of current, in-progress, and planned regulations.

PHMSA’s rulemaking efforts are driven by the belief, consistent with Executive Orders 13771, 13777, and 13783 and other legal authorities, that there should be no more regulations than necessary, and those regulations should be straightforward, clear, and designed to minimize burdens, consistent with safety.  We also believe that public input is a critical part of the rulemaking process and have proactively sought public comments on our regulatory review and rulemaking efforts.  PHMSA is using public input to decide on the best approach, consistent with our regulatory philosophy, to meeting the Department’s statutory obligations.

PHMSA’s review will help to ensure that its regulations are right-sized – which can allow operators to put additional resources where they will have the maximum safety impact, such as greater investment in safety research and development and technology-based safety enhancements. 

As always, our focus is ultimately on safety performance. It is the responsibility of the oil and gas industry to understand and manage the risks of their systems. The current regulatory climate gives us all a unique opportunity to work together to optimize our regulations for safety. The pipeline industry should continue to invest in and accelerate their pipeline safety efforts and make substantive safety improvements best suited to their systems and without specific direction from regulations.

III.  Other Actions

In addition to completing the important mandates given to it by the Congress, PHMSA continues to aggressively pursue its core safety mission through grants to states and communities, research and development initiatives, and additional safety programs.

A.  Support for States

PHMSA’s state pipeline safety partners oversee more than 80 percent of the nation’s pipeline infrastructure – much of it gas distribution pipelines – through annual certification with PHMSA.

An important part of these partnerships is that PHMSA stands ready to support states in times of crisis. In the wake of hurricanes Harvey, Florence, Irma, Maria, and Michael, PHMSA worked with impacted states and pipeline operators to remove obstacles that could delay safe and rapid recovery efforts.  PHMSA coordinated and provided periodic updates to Federal partners during the response and recovery phases of each natural disaster to assist with the movement of hazardous materials and energy products.  For pipelines, PHMSA issued emergency stays of enforcement for affected operators, temporarily halting its enforcement of compliance with operator qualification and pre-employment and random drug testing requirements to allow affected interstate gas and hazardous liquid pipeline operators to use personnel for urgent response and recovery activities.  PHMSA also notified impacted state pipeline safety partners that PHMSA would not object to them issuing similar temporary waivers for affected intrastate pipeline operators, in the interest of prompt and efficient pipeline safety activities related to response and recovery efforts.  Expediting pipeline repairs and restoration of service to those areas was our top priority.

In addition, PHMSA provides help to facilitate investigation and recovery following major incidents. In the wake of the tragic September 13, 2018 natural gas accident involving Columbia Gas of Massachusetts, PHMSA quickly dispatched a team of inspectors to Massachusetts to provide technical assistance to the Massachusetts Department of Public Utilities (MA DPU) and the NTSB.

PHMSA’s pipeline inspectors played an instrumental role in the investigation, helping to determine the cause of the incident, and explaining the mechanics of how such an accident could occur. The Governor of Massachusetts, the mayors of the three affected towns, the NTSB, the incident commander, our state partners in the MA DPU, and members of the Massachusetts Emergency Management Agency all expressed their appreciation of the help provided by PHMSA’s pipeline safety team and cited their professionalism, experience, and knowledge as being crucial to the success of the overall response to the incident.

PHMSA also supports state programs by providing essential technical training. Our state-of-the-art Training and Qualifications (T&Q) program has full accreditation from the International Association for Continuing Education and Training (IACET). The T&Q Center trains an average of 900 state and federal inspectors annually, ensuring that all are current on updated regulations, technology, and best practices.

PHMSA’s T&Q Center is committed to developing innovative ways to be more accessible and effective, including the exploration of long-distance proctored classes, curriculum improvements, and more efficient delivery to ensure relevancy. The T&Q Center is also working to develop an effective and efficient distance delivery system that does not sacrifice the high quality of PHMSA’s training curricula. PHMSA’s goal is to make it easier for state and federal inspectors to access the courses they need quickly and at a lower cost.

B.  Grants

The financial support PHMSA provides to its state partners through grants is another vital part of its partnerships. In total, PHMSA provided over $63 million in grant funding in fiscal year 2018 for pipeline inspection, enforcement, and safety awareness activities.

PHMSA’s State Base Grant program^[4] reimburses a portion of each partner state’s program expenses. The grants partially cover the cost of any personnel, equipment, and activities reasonably required for the conduct of the pipeline safety program. Most importantly, PHMSA’s grants provide state programs a consistent source of funding to hire and maintain adequate pipeline safety inspectors. For fiscal year 2018, PHMSA awarded $56 million to participating state programs.^[5] As the number of miles of pipeline infrastructure continues to grow and as the older pipes age, this grant program is critical to the oversight of the nation’s distribution pipeline systems.

PHMSA’s Technical Assistance Grants (TAGs) provide funding for technical assistance related to pipeline safety issues to local communities and non-profit organizations, where they make direct impacts to pipeline safety at the grassroots level. The TAGs can be used for engineering or other scientific analysis of pipeline safety issues and are also used to promote public participation in official proceedings. Since the program’s inception in 2009, PHMSA has awarded over $10 million for 200 individual technical assistance projects. PHMSA issued a Notice of Funding Opportunity for its fiscal year 2019 TAG grants in March and expects to award $1.5 million in grant funds to several recipients (up to $100,000 each) by September 2019.

PHMSA’s 811 One Call Grant Program provides funding to state agencies for promoting damage prevention awareness, including changes with their state underground damage prevention laws, related compliance activities, training and public education. This grant program is for states that have a certification or agreement with PHMSA to perform pipeline safety inspections. Last year, PHMSA awarded $1.1 million across 31 state agencies to assist in these efforts.

Finally, I am pleased to say that in 2018 PHMSA awarded its first ever round of Underground Natural Gas Storage Grants – first authorized in 2016 – in support of states’ inspection and enforcement of underground natural gas storage facilities.

The grants are used to reimburse up to 80 percent of the costs a state incurs for inspectors, equipment, and safety activities for the oversight of underground storage facilities.

C.  Damage Prevention

Excavation damage continues to be a leading cause of pipeline incidents. This year, PHMSA began issuing enforcement actions against excavators who damage pipelines in states that do not adequately enforce their own excavation damage prevention laws. PHMSA continues to support states with efforts to improve their own enforcement programs. PHMSA has seen marked improvements since 2016 in 14 states that have changed from inadequate to adequate programs per the PIPES Act of 2006 and our regulatory criteria. PHMSA continues to work with the 13 remaining states with inadequate programs to bring all programs up to an adequate level.

I would also like to thank all PHMSA stakeholders – especially the public – for the continued success of the national Call-Before-You-Dig number, 811. Over the past 10 years, since 811 was established, pipeline incidents caused by excavation damage have fallen 40 percent.  This decline would not have been possible without strong collaboration from all stakeholders.

D.  Advancing Domestic Energy

In August 2018, PHMSA established a new Memorandum of Understanding (MOU) with the Federal Energy Regulatory Commission (FERC) that eliminates unnecessary and duplicative regulatory reviews by both agencies when permitting new Liquefied Natural Gas (LNG) export facilities. Going forward, PHMSA will operate as the Federal Government’s LNG safety expert for Federal regulations covering the safety of LNG facilities and will be solely responsible for conducting the necessary safety analysis for new LNG facilities that may be permitted by FERC. 

PHMSA assesses each LNG facility application for FERC on a case-by-case basis to determine whether the application meets the minimum Federal Pipeline Safety Standards for the location of a new LNG facility. So far, PHMSA has issued ten Letters of Determination to FERC under the MOU.[6]   This agreement may help reduce the time it takes to obtain a new LNG export permit by as much as one year.

E.  Integrity Management

PHMSA continues to require integrity management programs that ensure operators are adequately identifying and addressing the greatest risks. Under integrity management, operators are required to conduct integrity assessments of gas transmission and hazardous liquid pipeline systems in high consequence areas and apply lessons learned across their entire system. Thanks to integrity management, gas transmission and hazardous liquid pipeline operators have identified and conducted over 90,700 repairs in high consequence areas between 2004 and 2017.

F.  Research and Development

PHMSA’s Research and Development (R&D) program supports new technology to further improve pipeline safety.  The R&D program sponsors research on projects that can provide near-term solutions to improve safety, reduce environmental impacts, and enhance the reliability of the Nation’s pipeline transportation system.

Since 2002, PHMSA has invested nearly $125 million dollars in 304 R&D projects and, in the past six months, two new technologies for methane leak detection and one to prevent excavation damage threats have been commercialized.  Since the program’s inception, 31 patent applications and 31 new pipeline technologies have hit the market, including above-ground, radar-based pipeline mapping and a robotic nondestructive testing method for pipelines that cannot accommodate traditional in-line inspection tools.

PHMSA’s pipeline safety program also takes a far-reaching view with its Competitive Academic Agreement Program (CAAP), which funds academic research to provide tomorrow's pipeline safety workforce with an early opportunity to contribute safety solutions. The CAAP program, launched in 2013, helps validate proof of concept for theories and theses that can be developed and further investigated.  The program also serves to expose the next generation of engineers to pipeline challenges and solutions.  In September 2018, PHMSA awarded more than $3.8 million to 11 universities via the CAAP.

IV.  Conclusion

Safety remains the highest priority for the U.S. Department of Transportation and for PHMSA. The agency is continuing to work hard to publish the rules and reports that will close Congressional mandates, and is also committed to addressing safety matters on all fronts.

As pipeline mileage across our country continues to grow, the need for strong pipeline safety standards and programs is ever more important.

Thank you again for inviting me to today’s hearing.  I look forward to your questions.

Pipeline Safety: Federal Oversight and Stakeholder Perspectives

Written Statement of
The Honorable Howard “Skip” Elliott
Administrator
Pipeline and Hazardous Materials Safety Administration

Before the U.S. Senate
Committee on Commerce, Science, and Transportation
Subcommittee on Transportation and Safety
Hearing on Pipeline Safety: Federal Oversight and Stakeholder Perspectives

April 10, 2019

I. Introduction

Chairman Fischer, Ranking Member Duckworth, members of the Subcommittee, thank you for inviting me to testify today on the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration’s (PHMSA) pipeline safety program.  I appreciate this Committee’s strong support for strengthening pipeline safety across our country.

Our nation’s infrastructure keeps this great nation moving and helps to raise the standard of living for all Americans.  The natural gas and hazardous liquid pipelines PHMSA regulates are an essential component of our national infrastructure, safely transporting the energy products that are essential to our daily lives.  Like all DOT modes, PHMSA is guided by Secretary Chao’s four strategic goals of safety, infrastructure enhancements, innovation, and accountability. 

A. PHMSA’s Mission

The mission of PHMSA is to protect people and the environment by advancing the safe transportation of energy products and other hazardous materials that are essential to our daily lives.  The need for safe and reliable energy infrastructure is growing.  Our nation is experiencing an energy renaissance, propelled largely by innovative production technologies and global demand for U.S. energy.

PHMSA’s pipeline safety program is responsible for the regulation and oversight of over 2.7 million miles of energy pipeline systems.  The vision of the pipeline safety program is straightforward: update or develop new regulations, policies, and guidance; improve our oversight to hold pipeline operators accountable; find innovative solutions to promote safety; and accommodate and encourage research into new and promising technologies.  Each of these goals ensure that pipeline infrastructure can continue to provide safe and reliable energy to our communities, homes, and businesses.

After working for decades in the freight rail industry, a great deal of it leading efforts to improve public safety and incident response, I have learned that safety is the result of effective, smart regulations that hold industry accountable, and reduce costs, when possible. 

PHMSA’s safety goal is zero pipeline accidents and its oversight philosophy is based on three fundamental tenets:

1. Establish minimum safety standards and take enforcement actions against operators not in compliance with these standards.
2. Ensure operators understand and manage the risks associated with their pipelines, including taking actions to prevent pipeline accidents and minimizing the impact of any accidents that occur.
3. Continually encourage and expect pipeline operators to improve their performance beyond minimum compliance with the regulations and continuously build a strong safety culture.

II. Progress on Mandates

Finalizing outstanding Congressional mandates remains a top priority.  PHMSA recognizes the concerns of this Subcommittee and is continuing to make progress on critical safety mandates.  Since June 2018, PHMSA completed and submitted reports to Congress on the Nationwide Integrated Pipeline Safety Regulatory Database, as well as a report on the Study on Propane Gas Pipeline Facilities.  Both reports were mandated in the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011.

Over the past year, PHMSA prioritized the rules it thought it could move quickly such as those for lithium batteries, plastic pipelines, and oil spill response plans for trains carrying crude oil.  These regulations are intended to advance public safety, while encouraging innovation and greater stakeholder awareness and collaboration.  These key rulemakings are detailed below.

Of the mandates from the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, PHMSA has eight of 42 mandates remaining.  Additionally, of the mandates from the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2016, PHMSA has four of 19 mandates remaining.

Together, of the 12 remaining mandates from the 2011 and 2016 Acts, four are tied to reports and other actions, and eight are tied to rulemaking efforts that PHMSA is continuing to make progress on under its established rulemaking process.

As Administrator, I am committed to doing everything I can to complete all the remaining rulemakings that address Congressional directives related to pipeline safety.  I believe completing these mandates will result in significant positive impacts to pipeline safety.

Completing rulemakings takes time simply because it is an iterative process that is designed to encourage maximum participation by all stakeholders, thus ensuring comprehensive rules that protect the public and stand up to cost/benefit scrutiny. PHMSA holds public meetings and workshops prior to rulemakings, using the information gathered to craft the most effective rules possible.  Such collaboration, well in advance of the rulemaking process, allows PHMSA to identify concerns and potential solutions to allocate its scarce resources where they are needed most.

In addition to mandates, many of PHMSA’s rulemakings underway address important recommendations from the National Transportation Safety Board (NTSB), resulting from safety issues identified during accident investigations.  PHMSA’s rules also address recommendations from the U.S. Government Accountability Office (GAO) and the DOT Inspector General (IG), and the agency’s own safety findings.  PHMSA must make sure that its regulations account for known safety issues, technological feasibility, and cost effectiveness.

In short, a lot of work goes on behind the scenes to get a rule ready for publication, and PHMSA is making positive movement towards completing the safety critical mandates and addressing recommendations from Congress, the NTSB, GAO, and IG, as well as our own safety findings.

A. Hazardous Liquid Rule

PHMSA understands the importance of moving forward its long-awaited Safety of Hazardous Liquid Pipelines rulemaking, which was included in the 2011 Act.  This rulemaking would amend the pipeline safety regulations to improve protection of the public, property, and the environment by closing regulatory gaps where appropriate.  In addition, this rule is intended to ensure that operators are increasing the detection and remediation of unsafe conditions, and mitigating the adverse effects of hazardous liquid pipeline failures. This rule is one of PHMSA’s highest priorities and is on track to be completed and published in 2019.[1]

B. Gas Transmission Rule

PHMSA is also making significant progress toward finalizing its gas transmission and gathering pipeline rulemaking efforts.  This is intended to help close two very important open mandates related to the expansion of integrity management principles and requirements for operators to confirm the maximum allowable operating pressure of certain gas pipelines. These changes are expected to allow operators to assess more pipelines and better understand their systems’ conditions.

When finalizing the “Safety of Gas Transmission and Gathering Pipelines” notice of proposed rulemaking (NPRM), the proposed rule was under review for nearly 2 years.  Delays were largely due to the proposed rule being too big and unwieldy to move through the administrative process.   Accordingly, PHMSA made the strategic decision to split the initial proposed rule into smaller, more manageable rulemaking actions.  The split will help PHMSA manage each individual rule more efficiently; and, most importantly, prioritize Congressional directives on gas pipelines.  Additionally, while working to complete the Congressional mandates this rulemaking will address, PHMSA is also using its resources to incorporate and advance several recommendations from the NTSB and GAO as part of the rule.

PHMSA’s goal is to publish the final rule addressing Congressional directives this year,[2] and will continue working to ensure that the other rules follow closely behind.

C. Valve and Rupture Detection Rule

PHMSA is developing an NPRM to address leak and rupture detection.[3] The Shutoff Valve and Rupture Detection rule will meet the goals of two Congressional directives.  It proposes revisions to the pipeline safety regulations for newly constructed or entirely replaced natural gas transmission and hazardous liquid pipelines.  In doing so, the rule is intended to improve rupture mitigation and shorten the time it takes to shut down a pipeline segment.  The rule will also address recommendations from the NTSB and is expected to help reduce the serious consequences of large-volume releases of natural gas and hazardous liquids.

PHMSA is proposing standards for operators to utilize rupture detection metrics for valve placement to improve incident response in populated or environmentally sensitive areas.  Rupture response metrics would focus on mitigating large release events that have a greater potential consequence.  This rulemaking is currently under comprehensive review at the Department and we are working to move it forward as expeditiously as possible.

D. Plastic Gas Pipe Rule

This rule, published in November 2018, updated pipeline safety regulations to allow for the modernization of plastic pipe material, design, and construction standards.  This final rule also responds to plastic pipe installation and operational safety concerns identified by federal and state field inspectors.  With this rule, new or replaced local gas distribution systems will be built and maintained with the most advanced pipeline technology, which is expected to greatly improve public safety for local communities.

E. Hazardous Materials Transportation Directives from Congress

PHMSA also regulates the safety of hazardous materials by all modes of transportation, including by highway, railroad, vessel, and airways.  Although PHMSA’s two program offices are authorized separately, we are one PHMSA.  We share resources, knowledge, and most importantly, we share the same safety goals.

On February 28, 2019, PHMSA, in coordination with the Federal Railroad Administration, issued a final rule that amends the Hazardous Materials Regulations requirements for comprehensive oil spill response plans and information sharing. This rule was requested by Congress in the fiscal year 2016 Consolidated Appropriations Act.  The rulemaking sets safety standards for rail operator response to incidents involving crude oil transported by rail.

Additionally, on March 6, 2019, PHMSA, in collaboration with the Federal Aviation Administration (FAA), published an interim final rule (IFR) for the safe transport of lithium batteries by aircraft.  The IFR is first of PHMSA’s completed actions in addressing directives included in the FAA Reauthorization Act of 2018.  This IFR prohibits the transport of lithium ion cells or batteries as cargo on passenger aircraft.  In addition, the IFR requires lithium ion cells and batteries to be shipped at not more than a 30 percent state of charge aboard cargo-only aircraft.  The IFR is intended to strengthen safety for the traveling public by addressing the unique challenges lithium batteries pose in transportation.

F. Regulatory Reform

While PHMSA works to complete its regulatory agenda, the agency is also committed to improving the effectiveness of our regulatory program by conducting a comprehensive evaluation of current, in-progress, and planned regulations.

PHMSA’s rulemaking efforts are driven by the belief, consistent with Executive Orders 13771, 13777, and 13783 and other legal authorities, that there should be no more regulations than necessary, and those regulations should be straightforward, clear, and designed to minimize burdens, consistent with safety.  We also believe that public input is a critical part of the rulemaking process and have proactively sought public comments on our regulatory review and rulemaking efforts.  PHMSA is using public input to decide on the best approach, consistent with our regulatory philosophy, to meeting the Department’s statutory obligations.

PHMSA’s review will help to ensure that its regulations are right-sized – which can allow operators to put additional resources where they will have the maximum safety impact, such as greater investment in safety research and development and technology-based safety enhancements. 

As always, our focus is ultimately on safety performance. It is the responsibility of the oil and gas industry to understand and manage the risks of their systems. The current regulatory climate gives us all a unique opportunity to work together to optimize our regulations for safety. The pipeline industry should continue to invest in and accelerate their pipeline safety efforts and make substantive safety improvements best suited to their systems and without specific direction from regulations.

III. Other Actions

In addition to completing the important mandates given to it by the Congress, PHMSA continues to aggressively pursue its core safety mission through grants to states and communities, research and development initiatives, and additional safety programs.

A. Support for States

PHMSA’s state pipeline safety partners oversee more than 80 percent of the nation’s pipeline infrastructure – much of it gas distribution pipelines – through annual certification with PHMSA.

An important part of these partnerships is that PHMSA stands ready to support states in times of crisis. In the wake of hurricanes Harvey, Florence, Irma, Maria, and Michael, PHMSA worked with impacted states and pipeline operators to remove obstacles that could delay safe and rapid recovery efforts.  PHMSA coordinated and provided periodic updates to Federal partners during the response and recovery phases of each natural disaster to assist with the movement of hazardous materials and energy products.  For pipelines, PHMSA issued emergency stays of enforcement for affected operators, temporarily halting its enforcement of compliance with operator qualification and pre-employment and random drug testing requirements to allow affected interstate gas and hazardous liquid pipeline operators to use personnel for urgent response and recovery activities.  PHMSA also notified impacted state pipeline safety partners that PHMSA would not object to them issuing similar temporary waivers for affected intrastate pipeline operators, in the interest of prompt and efficient pipeline safety activities related to response and recovery efforts.  Expediting pipeline repairs and restoration of service to those areas was our top priority.

In addition, PHMSA provides help to facilitate investigation and recovery following major incidents. In the wake of the tragic September 13, 2018 natural gas accident involving Columbia Gas of Massachusetts, PHMSA quickly dispatched a team of inspectors to Massachusetts to provide technical assistance to the Massachusetts Department of Public Utilities (MA DPU) and the NTSB.

PHMSA’s pipeline inspectors played an instrumental role in the investigation, helping to determine the cause of the incident, and explaining the mechanics of how such an accident could occur. The Governor of Massachusetts, the mayors of the three affected towns, the NTSB, the incident commander, our state partners in the MA DPU, and members of the Massachusetts Emergency Management Agency all expressed their appreciation of the help provided by PHMSA’s pipeline safety team and cited their professionalism, experience, and knowledge as being crucial to the success of the overall response to the incident.

PHMSA also supports state programs by providing essential technical training. Our state-of-the-art Training and Qualifications (T&Q) program has full accreditation from the International Association for Continuing Education and Training (IACET). The T&Q Center trains an average of 900 state and federal inspectors annually, ensuring that all are current on updated regulations, technology, and best practices.

PHMSA’s T&Q Center is committed to developing innovative ways to be more accessible and effective, including the exploration of long-distance proctored classes, curriculum improvements, and more efficient delivery to ensure relevancy. The T&Q Center is also working to develop an effective and efficient distance delivery system that does not sacrifice the high quality of PHMSA’s training curricula. PHMSA’s goal is to make it easier for state and federal inspectors to access the courses they need quickly and at a lower cost.

B. Grants

The financial support PHMSA provides to its state partners through grants is another vital part of its partnerships. In total, PHMSA provided over $63 million in grant funding in fiscal year 2018 for pipeline inspection, enforcement, and safety awareness activities.

PHMSA’s State Base Grant program[4] reimburses a portion of each partner state’s program expenses. The grants partially cover the cost of any personnel, equipment, and activities reasonably required for the conduct of the pipeline safety program. Most importantly, PHMSA’s grants provide state programs a consistent source of funding to hire and maintain adequate pipeline safety inspectors. For fiscal year 2018, PHMSA awarded $56 million to participating state programs.[5] As the number of miles of pipeline infrastructure continues to grow and as the older pipes age, this grant program is critical to the oversight of the nation’s distribution pipeline systems.

PHMSA’s Technical Assistance Grants (TAGs) provide funding for technical assistance related to pipeline safety issues to local communities and non-profit organizations, where they make direct impacts to pipeline safety at the grassroots level. The TAGs can be used for engineering or other scientific analysis of pipeline safety issues and are also used to promote public participation in official proceedings. Since the program’s inception in 2009, PHMSA has awarded over $10 million for 200 individual technical assistance projects. PHMSA issued a Notice of Funding Opportunity for its fiscal year 2019 TAG grants in March and expects to award $1.5 million in grant funds to several recipients (up to $100,000 each) by September 2019.

PHMSA’s 811 One Call Grant Program provides funding to state agencies for promoting damage prevention awareness, including changes with their state underground damage prevention laws, related compliance activities, training and public education. This grant program is for states that have a certification or agreement with PHMSA to perform pipeline safety inspections. Last year, PHMSA awarded $1.1 million across 31 state agencies to assist in these efforts.

Finally, I am pleased to say that in 2018 PHMSA awarded its first ever round of Underground Natural Gas Storage Grants – first authorized in 2016 – in support of states’ inspection and enforcement of underground natural gas storage facilities. The grants are used to reimburse up to 80 percent of the costs a state incurs for inspectors, equipment, and safety activities for the oversight of underground storage facilities.

C. Damage Prevention

Excavation damage continues to be a leading cause of pipeline incidents. This year, PHMSA began issuing enforcement actions against excavators who damage pipelines in states that do not adequately enforce their own excavation damage prevention laws. PHMSA continues to support states with efforts to improve their own enforcement programs. PHMSA has seen marked improvements since 2016 in 14 states that have changed from inadequate to adequate programs per the PIPES Act of 2006 and our regulatory criteria. PHMSA continues to work with the 13 remaining states with inadequate programs to bring all programs up to an adequate level.

I would also like to thank all PHMSA stakeholders – especially the public – for the continued success of the national Call-Before-You-Dig number, 811. Over the past 10 years, since 811 was established, pipeline incidents caused by excavation damage have fallen 40 percent.  This decline would not have been possible without strong collaboration from all stakeholders.

D. Advancing Domestic Energy

In August 2018, PHMSA established a new Memorandum of Understanding (MOU) with the Federal Energy Regulatory Commission (FERC) that eliminates unnecessary and duplicative regulatory reviews by both agencies when permitting new Liquefied Natural Gas (LNG) export facilities. Going forward, PHMSA will operate as the Federal Government’s LNG safety expert for Federal regulations covering the safety of LNG facilities and will be solely responsible for conducting the necessary safety analysis for new LNG facilities that may be permitted by FERC. 

PHMSA assesses each LNG facility application for FERC on a case-by-case basis to determine whether the application meets the minimum Federal Pipeline Safety Standards for the location of a new LNG facility. So far, PHMSA has issued eight Letters of Determination to FERC under the MOU.[6]   This agreement may help reduce the time it takes to obtain a new LNG export permit by as much as one year.

E. Integrity Management

PHMSA continues to require integrity management programs that ensure operators are adequately identifying and addressing the greatest risks. Under integrity management, operators are required to conduct integrity assessments of gas transmission and hazardous liquid pipeline systems in high consequence areas and apply lessons learned across their entire system. Thanks to integrity management, gas transmission and hazardous liquid pipeline operators have identified and conducted over 90,700 repairs in high consequence areas between 2004 and 2017.

F. Research and Development

PHMSA’s Research and Development (R&D) program supports new technology to further improve pipeline safety.  The R&D program sponsors research on projects that can provide near-term solutions to improve safety, reduce environmental impacts, and enhance the reliability of the Nation’s pipeline transportation system.

Since 2002, PHMSA has invested nearly $125 million dollars in 304 R&D projects and, in the past six months, two new technologies for methane leak detection and one to prevent excavation damage threats have been commercialized.  Since the program’s inception, 31 patent applications and 31 new pipeline technologies have hit the market, including above-ground, radar-based pipeline mapping and a robotic nondestructive testing method for pipelines that cannot accommodate traditional in-line inspection tools.

PHMSA’s pipeline safety program also takes a far-reaching view with its Competitive Academic Agreement Program (CAAP), which funds academic research to provide tomorrow's pipeline safety workforce with an early opportunity to contribute safety solutions. The CAAP program, launched in 2013, helps validate proof of concept for theories and theses that can be developed and further investigated.  The program also serves to expose the next generation of engineers to pipeline challenges and solutions.  In September 2018, PHMSA awarded more than $3.8 million to 11 universities via the CAAP.

IV. Conclusion

Safety remains the highest priority for the U.S. Department of Transportation and for PHMSA. The agency is continuing to work hard to publish the rules and reports that will close Congressional mandates, and is also committed to addressing safety matters on all fronts.

As pipeline mileage across our country continues to grow, the need for strong pipeline safety standards and programs is ever more important.

Thank you again for inviting me to today’s hearing.  I look forward to your questions.

Transportation, Housing, and Urban Development and Related Agencies

STATEMENT OF
THE HONORABLE ELAINE L. CHAO
SECRETARY OF TRANSPORTATION

BEFORE THE
APPROPRIATIONS SUBCOMMITTEE ON
TRANSPORTATION, HOUSING, AND URBAN DEVELOPMENT AND RELATED AGENCIES
UNITED STATES HOUSE OF REPRESENTATIVES

April 10, 2019

Introduction

Chairman Price, Ranking Member Diaz-Balart, and members of the Subcommittee, thank you for the opportunity to meet today to discuss the President’s Fiscal Year 2020 Budget request for the Department of Transportation (DOT).  The President’s budget proposal – A Budget for A Better America -- continues to emphasize the importance of addressing our Nation’s infrastructure needs using smart, effective and modern methods that provide results and maximize our resources.

The President’s Budget requests a total of $84 billion to support transportation programs in FY 2020.  About 75% of this request fully funds surface transportation for the “fifth” and final year of the Fixing America’s Surface Transportation (FAST) Act and the Federal Aviation Administration’s authorized funding levels for the Grants-in-Aid for Airports program.  These programs support infrastructure improvements that are critical to maintaining dependable transportation systems that support our growing economy.

The remaining 25% of this request, or $21.4 billion, funds several high priority investments and important reforms that will strengthen our programs while making them more efficient.  This portion of the budget is a $5.1 billion reduction from FY 2019 enacted levels, because of the additional infrastructure investments the Congress committed to in the two-year Government-wide discretionary funding caps deal.  When you deduct those temporary increases, this request provides a robust level for many of the Department’s programs and tracks very closely to the FY 2019 enacted appropriations.   

Comparing DOT Resources Across Years

Some have noted that the President’s FY 2020 Budget request is about 20% less than the FY 2019 enacted appropriations for discretionary programs.  While this is technically true for a relatively small subset of the budget, it is misleading and does not tell the whole story.   There are two important points to consider. 

First, unlike most domestic programs, DOT’s mandatory programs are not traditional entitlements.  Instead, they result from contract authority that is provided for infrastructure transportation programs.  However, these levels are not a given.  Every year the Executive Branch and this subcommittee determine what the annual obligation limit should be that ultimately controls the level of investment.  With this in mind, a comparison of the Department’s overall funding of $84 billion provides a more representative measure for comparison and reflects only a 4% reduction.

Timing also plays a critical role in developing budgets.  When the President’s FY 2020 Budget was being developed, we did not have a final FY 2019 Appropriation and were operating under a long-term Continuing Resolution.  In the absence of a FY 2019 Enacted Appropriation, the Administration relied on its own FY 2019 President’s Budget request as the basis for the FY 2020 President’s Budget decisions.  When we compare the President’s Budget request for FY 2019 and FY 2020, the FY 2020 budget provides an overall 8.9% increase.  Further, compared to the FY 2017 enacted level, prior to the budget cap deal increases, the overall increase for FY 2020 is almost 8%.  This reflects the Administration’s strong support for funding transportation infrastructure investments even as other portions of the President’s Budget were targeted for reductions.

Modernizing our Nation’s Airspace

The President’s Budget requests $17.1 billion to support the important work of the Federal Aviation Administration (FAA). The FAA manages our Nation’s airspace and directs the safe transportation of 1 billion passengers and 25 million tons of cargo each year.  At the same time, the FAA is continually advancing new technologies and innovations that improve its operations and help the Agency keep pace with increasing demand for reliable air services.  The FAA’s signature NextGen program is focused on integrating these critical safety and innovation technologies into the National Airspace System using the resources across its accounts. 

The President’s request acknowledges the importance of this program by providing $1.4 billion in resources specifically dedicated to NextGen initiatives.  This is the highest request for NextGen in the Department’s history.  The President’s Budget funds the FAA’s overall Operations at $10.3 billion.  While this level is $70 million below FY 2019 enacted levels, this is only a slight reduction overall and certainly sufficient to meet the Agency’s needs.  At the same time, the FAA’s Facilities and Equipment program received $3.3 billion -- a nearly $300 million increase.  These funds will be focused on modernizing FAA’s infrastructure to improve safety and reduce flight delays.

Improving Surface Transportation Infrastructure

Consistent with previous years and the Administration’s infrastructure improvement priorities, the President’s Budget funds the Federal Highway Administration at the level authorized by the FAST Act to support highway infrastructure improvements and highway safety programs.  The President’s request does not continue the $3.3 billion in funding for the discretionary Highway Infrastructure Program, which was new in FY 2018.  Instead, it provides substantial additional resources to successful competitive programs.  These include $1 billion to the Infrastructure for Rebuilding America (INFRA) Grant program to supplement the $1 billion provided by the FAST Act for a total of $2 billion in INFRA Grants; and $1 billion to the Better Utilizing Investments to Leverage Development (BUILD) Grant program.  The INFRA and BUILD programs have been effective in delivering high returns on investment by encouraging local contributions and partnerships with the private sector.  Another $300 million is provided for the innovative Competitive Bridge Program which encourages States to replace and repair deteriorating bridges cost effectively through project bundling.  In addition, the FY 2020 request includes $500 million to improve the Nation’s aging transit assets and infrastructure.

Transit’s Capital Investment Grant Program

The Federal Transit Administration’s Capital Investment Grant Program supports the construction of new transit, commuter rail, light rail, and bus rapid transit projects.  The Administration continues to encourage increased local contributions in the funding of transit projects.  The President’s Budget provides $1.0 billion to fund the current portfolio of capital investment projects with signed full funding grant agreements at the time the Budget was developed.  In addition, another $500 million is provided for new projects in the program pipeline as they become ready.  

Investing in Emerging Technologies and Innovation

Every day, Americans wake up to new and advanced technological improvements that are changing the way we live, work and enjoy life.  Technology is also rapidly changing transportation.  The Department has a responsibility to ensure that new transportation systems are integrated into the overall transportation network in a safe and prudent way.

The President’s Budget request includes nearly $300 million to address emerging technologies and innovation.  This includes $203 million for unmanned aircraft systems which will be integrated into the National Airspace, and a new Office of Innovation within the FAA to focus on integration issues resulting from the latest emerging technologies.  Another $25.6 million is requested to protect the public during take-off and reentry of Commercial Space launches.

A total of $19.2 million is also requested in the National Highway Traffic Safety Administration’s budget to oversee the introduction of automated driving systems on our Nation’s highways as this technology continues to mature.

Amtrak Reforms

The President’s Budget request proposes reforms to Amtrak that would provide efficiencies and reduce costs.  Amtrak’s new leadership team has been making strides in implementing practical and effective cost saving measures while maintaining quality service.  The President’s Budget funds Amtrak at nearly $1.5 billion in total.  The Northeast Corridor is funded at $325 million which funds Amtrak’s needs based on traditional spending patterns.  Further, the President’s Budget includes funding available for rail infrastructure and safety grants – a new approach from previous requests.

The President’s Budget includes a proposal to reform the way Amtrak’s long-distance routes are managed.  These routes are currently fully funded by Federal dollars and account for the majority of the railroad’s operating losses.  DOT will help lead the way on a new vision, working with stakeholders to develop a rationalized network to provide better, more cost-efficient service.   This modernized network will focus trains on shorter distance routes between promising city pairs, while providing robust intercity bus service to currently underserved rural areas via partnership between Amtrak and bus operators.

At the same time, the Department understands that many States and communities may not have the resources to assume immediate financial responsibility for these services.  With this in mind, the President’s Budget includes $550 million in transitional grants that would assist States in taking on the management of these newly created State-supported routes. The grants would support the costs of these routes in FY 2020 and would phase down and out over a five-year period.

Supporting the Training Needs of the State Maritime Academies

Along with the U.S. Merchant Marine Academy, the State Maritime Academies provide the education and training needed to successfully support the Nation’s needs for qualified and experienced merchant mariners.   The Academies are currently operating with a fleet of training ships that are either at, or approaching, the end of their useful service life.  Funding for the two oldest vessels is already secured and plans are underway to build replacements.  The President’s Budget includes $205 million for a third training ship to further this effort.  

Thank you again, for the opportunity to appear before you today to discuss the President’s Fiscal Year 2020 Budget.  I will be happy to answer your questions.

*****