Update on NHTSA and Automaker Efforts to Repair Defective Takata Air Bag Inflators

Testimony Prepared for

Deputy Administrator Heidi King

National Highway Traffic Safety Administration

 March 20, 2018

Good afternoon Chairman Moran, Ranking Member Blumenthal, and members of the Subcommittee.

Our conversation today on the recall of the deadly Takata air bags could not occur at a more important time. This unprecedented challenge confronts all of us. Each of us in this room share the goal of protecting public safety.

Manufacturers have made progress in reaching consumers and persuading them to bring their vehicles in for a free repair, but progress is uneven and overall completion rates are not where we want them to be.

The challenge is unprecedented, but there are positive signs. NHTSA and the Independent Monitor established under the Consent Order have successfully encouraged vehicle manufacturers to adopt innovative outreach best practices—including texting, social media, and door-to-door canvassing—that have proven effective with some consumers who were unresponsive to traditional outreach efforts. 

NHTSA’s Coordinated Remedy Order has targeted replacement inflators to those consumers with the highest risk so that inflators that pose the greatest danger get repaired first.

The threat is not static. As time passes, continued exposure to heat and humidity will increase the risk of injury or death to those friends and neighbors driving cars with the old, dangerous air bags. 

Everyone is encouraged to visit NHTSA.gov and check to see if they have an open recall so they can bring their vehicle to their local dealer for a free repair. They can also call 888-327-4236.

I ask each of you to support our shared goal of public safety, and help raise consumer awareness of how important it is that vehicle owners check NHTSA.gov to learn of open recalls, call their dealership, and complete their free air bag replacement.

*****

As members of this Subcommittee know, defective Takata air bags pose a significant threat to safety. Currently, the Takata recall involves 19 vehicle manufacturers and approximately 50 million Takata air bag inflators in an estimated 37 million vehicles in the United States alone.  To date, over 21 million defective air bags have been repaired.

The recall will continue to be deployed in phases, which means that more vehicles will be included in the recall in the next couple of years. The program prioritizes and phases in the recalls to not only accelerate the repairs, but to ensure that the highest-risk vehicles are fixed first.

Prioritizing repairs does mean some vehicle owners might have to wait for replacement air bags. That is deeply frustrating. But it also means that parts are available immediately to fix vehicles that pose a greater risk.

While overseeing the historic recall of 50 million air bag inflators across the United States, NHTSA has continued to investigate Takata air bags, including industry testing of parts, and is closely monitoring the vehicle manufacturers’ recall efforts. This continued vigilance allows NHTSA to make sure we are focusing on those vehicles that pose the highest risk to safety. 

A recent example of NHTSA’s continued vigilance is the “do not drive” recall by two manufacturers. This “do not drive” recall followed a tragic death resulting from improper deployment of a recalled air bag. The investigation revealed that there was a previously unidentified issue that called into question whether there was additional risk associated with a group of air bags. In consultation with NHTSA, the manufacturers escalated the recall.

At this critical stage, we are considering novel ways to reach consumers and improve response rates. We know that consumers may not be aware of the risks and we appreciate your help in raising awareness. Air bag replacement is free, and every consumer should check NHTSA.gov to learn whether their car, truck, or van is subject to the recall.

Thank you again for inviting me to be with you today to raise awareness among the public of this very serious threat to roadway safety. I look forward to your questions.

The Maritime Administration’s Fiscal Year 2019 Budget Request

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 “THE MARITIME ADMINISTRATION’S

FISCAL YEAR 2019 BUDGET REQUEST”

March 14, 2018

Good morning, Chairman Hunter, Ranking Member Garamendi and members of the Subcommittee.  I appreciate the opportunity to discuss the President’s Fiscal Year (FY) 2019 budget priorities for the Maritime Administration (MARAD).  MARAD’s statutory mission to foster, promote, and develop the merchant maritime industry of the United States.  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 2019 BUDGET REQUEST

The United States is a maritime Nation, with our country’s economy highly dependent on viable coastal and ocean resources, and inland waterways.  In 2014, U.S. maritime freight activity helped to support $4.6 trillion of economic activity among the many non-maritime industries that depend on it for access to world markets and within the maritime industry itself, equivalent to 26 percent of our GDP.  MARAD’s programs seek to support both the maritime industry’s commercial health and national security objectives.

The U.S.-flag fleet operating in international trade currently carries less than 2 percent of our annual foreign trade by tonnage. The U.S. commercial presence in the international maritime domain has been at historic lows over the past several years with only 81 ships remaining in those trades.  As our national economy relies on foreign trade, we need to increase our capability to participate as a nation in maritime commerce to ensure we remain economically competitive.  Without this capability, the U.S. economy would become reliant on foreign-flag shipping services.  During Operation Desert Shield in 1991, DOD found it necessary to employ 177 foreign vessels to meet sealift needs in addition to approximately 170 U.S.-flagged vessels.  However, 13 of the foreign vessels carrying essential supplies hesitated or refused to enter the area of operations, resulting in a loss of 34 transit days for ships carrying cargo for U.S. troops. Additionally, Commander, United States Transportation Command, recently testified regarding the critical importance of the availability of U.S.-flag vessels using this example stating, “foreign-flagged vessels declined to enter the area of operations, while U.S.-flagged vessels provided steadfast support, delivering the bulk of the Joint Force to the Middle East.”.As the fleet dwindles, so does the base of U.S. Merchant Mariners and the shipbuilding and repair industry, which are all essential components of national security.

To ensure a strong domestic maritime industry and U.S. Merchant Marine into the future, the President’s FY 2019 Budget Request for MARAD of $696.4 million is focused on increasing the competitiveness of the U.S.-flag fleet, and investing in the education and training of the next generation of 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.  This request supports a variety of MARAD initiatives involving ships and shipping, vessel operations, national security and strategic mobility, ship disposal, and maritime education.  A summary of the FY 2019 request is provided below.

NATIONAL SECURITY

By law, and pursuant to Presidential National Security Directive 28, DOD must rely on U.S.-flag ships crewed by volunteer, civilian U.S. mariners, to provide the sealift capacity to support military deployments and respond to national emergencies.  MARAD is charged with ensuring that U.S.-flag ships and merchant mariners are available to meet DOD sealift requirements.  The U.S.-flag fleet of privately owned, commercially operated vessels, along with government-owned vessels, provide a critical public-private sealift surge and sustainment capacity to move equipment and materials for the Armed Forces and Federal agencies as needed, during times of conflict, humanitarian crises, and natural disasters such as those we witnessed last summer in the wake of Hurricanes Harvey, Irma, and Maria.

Maritime Security Program (MSP)

For FY 2019, $214 million is requested for the MSP, providing for $3.6 million for each of the 60 ships enrolled in the program.  The Maritime Security Act of 1996 established the MSP, which ensures access to U.S.-flag ships in ocean-borne foreign commerce and the necessary intermodal logistics networks to move military equipment and supplies during armed conflict or national emergency.  This program also provides critical employment for up to 2,400 highly qualified U.S. merchant mariners and approximately 5,000 shore side maritime professionals each year.  The MSP provides direct annual stipends for 60 active, commercially viable, militarily useful, privately owned U.S.-flag vessels and crews operating in the international trade.  Participating operators commit their ships, crews, and global network of intermodal facilities and commercial transportation resources upon request by the Secretary of Defense during times of war or national emergency. 

During FY 2018, MARAD restored the MSP fleet to the full, authorized level of 60 ships.  Being at full capacity bolsters the ability of the U.S. merchant marine to meet DOD deployment and sustainment requirements.  MARAD brought two new roll-on roll-off (RO/RO) vessels into the MSP fleet, which added more than 320,000 square feet in militarily useful cargo capacity, significantly improving DOD’s ability to move and sustain the heaviest U.S. armored units.  Entry of the new ships raised the overall fleet's militarily useful capacity to the highest level in the program's history.  The MSP has supported every U.S. conflict since its inception in 1996, including Operations Enduring Freedom and Iraqi Freedom.  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 merchant ships in the NDRF.  This 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.  Our Nation has called upon RRF and NDRF vessels, which include training ships on loan to the six state maritime academies (SMAs) and the U.S. Merchant Marine Academy (USMMA), to respond to several disasters.  RRF and NDRF ships were activated to provide support to other government agencies for recent relief efforts following Hurricanes Harvey, Irma, and Maria.  During these deployments, these vessels supplied first responders with housing, meals, logistical support, and relief supplies, including critical replacement of Federal Aviation Administration air navigation equipment that was delivered by one of the activated vessels to the Virgin Islands.  Additionally, these vessels were previously activated for disaster relief following Hurricanes Katrina, Rita, and Sandy and the 2010 earthquake relief effort in Haiti.

In addition to hurricane response, this past year MARAD supported DOD with the largest round of ammunition cargo sealifts in decades, as well as a 57-day mission for an Army unit movement to Kuwait where five vessels were utilized to accomplish six distinct sealift missions.  Along with cargo sealift activities, two MARAD vessels were utilized by the DOD’s Missile Defense Agency for tracking multiple missile test launches. 

Funding provided from DOD will allow MARAD to continue to provide ready surge sealift support in FY 2019 and special mission vessels from the RRF fleet, while maintaining MARAD’s NDRF fleet mooring sites.  This request includes an additional increase in funding that will support readiness related maintenance and repair initiatives for service life extension work supporting the special mission vessels.  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, the average age of which is 43 years.

MARITIME 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.  Therefore, maintaining an adequate pool of U.S. merchant mariners is vital to both the peacetime commercial success of the U.S.-flag fleet and to maintain the capacity needed to man Government-owned surge sealift forces to deploy and sustain US forces overseas in times of national emergency.  The USMMA and SMAs graduate most of the USCG-credentialed officers who hold an unlimited tonnage or horsepower endorsement available to crew these U.S.-flag ocean-going ships.  These graduates support our Nation with a cadre of well-educated and trained merchant mariners capable of serving in support of military operations, national emergencies, and humanitarian missions.

United States Merchant Marine Academy

The President’s FY 2019 Budget Request includes $74.6 million for USMMA.  Of this, $70.6 million will support Academy operations, and $4 million will fund priority capital repairs and improvements to the Academy’s buildings and infrastructure.  This request 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.  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 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 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.  In June 2019, 196 midshipmen are expected to graduate from the Academy. 

DOT, MARAD, and the USMMA take sexual assault and sexual harassment at the Academy and at sea very seriously, and have worked collaboratively with industry stakeholders to facilitate a cultural change by disseminating a strong message against sexual assault and sexual harassment in the maritime sector.  The Academy is implementing provisions included in both the Fiscal Year 2017 and Fiscal Year 2018 National Defense Authorization Act aimed at improving the Academy’s sexual assault and sexual harassment prevention and response efforts.  Actions include enhancing prevention training, increasing campus security, initiating a Midshipman-driven on-campus culture change program, and expanding the Sexual Assault Prevention and Response Office.  The FY 2019 funding will also provide for satellite communication devices that will be issued to midshipmen during Sea Year training and upgrading the 24/7 sexual assault hotline.

State Maritime Academies

In addition to providing oversight of the USMMA, MARAD provides funding assistance to six SMAs, which collectively graduate more than three-fourths of the entry-level merchant marine officers annually. The President’s FY 2019 Budget Request includes $24.4 million for the SMA program.  This request includes $22 million to fund maintenance and repair costs for Federally owned school ships on loan from MARAD to the SMAs.  Ensuring the continued availability of SMA training vessels is a critical need and high MARAD priority.  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 address priority maintenance needs across all the training vessels.

Additionally, the request provides $2.4 million to fund the Student Incentive Program (SIP), which provides financial assistance to 75 new cadets each year (across all SMAs) that participate in the program for a period of four years.  The SIP program provides cadets with funds for uniforms, tuition, books, and subsistence.  Upon graduation, SIP students must maintain an unlimited USCG credential for six years, fulfill a three-year service obligation in the maritime industry, and serve in a reserve unit of an Armed Forces or uniformed service for eight years.  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 careers as merchant marine officers.  Approximately 991 Cadets are expected to graduate from the SMAs in May 2019. 

School Ship Replacement

The President’s FY 2019 Budget Request includes $300 million to support the procurement and conversion of two used ships to replace aging and outdated training ships on loan from MARAD to the SMAs.  Specifically, this funding will be prioritized for replacing the Training Ship (TS) EMPIRE STATE, currently assigned to the State University of New York (SUNY) Maritime College, and TS KENNEDY, currently assigned to the Massachusetts Maritime Academy.  These two vessels are each more than 50 years old, and are now serving beyond their designed service lives.  Both ships combined provide nearly 68 percent of the state maritime training capacity. 

Investment in school ship replacement is essential to foster the growth of the Nation’s maritime transportation workforce needs, while addressing emerging workforce challenges facing a critical shortage of U.S. merchant mariners needed to crew the commercial and government-owned sealift ships to meet national security needs.  The Department is working to update its 2019 Budget materials to reflect the $300 million school ship request and will submit that revised information to Congress soon.

OTHER MARITIME TRANSPORATION PROGRAMS

Ship Disposal Program

The President’s FY 2019 Budget requests $30 million for the ship disposal program, of which $25 million is to continue, under Phase II, the radiological decontamination, dismantlement, and disposal of the defueled nuclear power plant on board the Nuclear Ship SAVANNAH (NSS).  Funding also includes $3 million to maintain the NSS in protective storage, which supports and manages the Nuclear Regulatory Commission (NRC) required licensed activities on board the ship, including radiological protection, vessel maintenance, lay berthing, and custodial care.  The ship disposal funding request also includes $2 million for salaries and administrative program costs. 

As a Federal licensee, MARAD is responsible for continuing the required protective storage activities for the NSS until decommissioning and license termination are complete.  The program received funding for decommissioning in FY 2017 to initiate and complete Phase I of a three-phased 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.  This FY 2019 request allows for a seamless decommissioning project transition, without shutdown interruption, into Phase II, which will be largely confined to activities involved with removing the reactor and major components.  The NRC allows a maximum of 60 years from permanent nuclear power plant shutdown to license termination.  All decommissioning and license termination activities must be completed by December 2031. 

MARAD is also the ship disposal agent for Federal government-owned merchant-type vessels of 1,500 gross tons or greater and has custody of a fleet of non-retention ships.  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 non-retention vessels in the worst condition.  Currently, MARAD has 13 obsolete NDRF vessels not yet under contract for disposal, which is a historic low.  In July 2017, MARAD completed the final removal of the remaining two non-retention vessels from the Suisun Bay Reserve Fleet, in compliance with an April 2010 U.S. District Court consent decree requiring the removal of all 57 vessels from the fleet site by September 2017. 

CONCLUSION

These programs represent MARAD priorities supported by the President’s FY 2019 Budget request. 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 FY 2019 Budget Request 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.

Mobility and Transportation Command Posture

STATEMENT OF

MARK H. BUZBY

ADMINISTRATOR

MARITIME ADMINISTRATION

U.S. DEPARTMENT OF TRANSPORTATION

BEFORE THE

COMMITTEE ON ARMED FORCES

SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES

AND SUBCOMMITTEE ON READINESS

U.S. HOUSE OF REPRESENTATIVES

HEARING ON MOBILITY AND TRANSPORTATION COMMAND POSTURE

March 8, 2018

Good morning Chairman Wittman, Chairman Wilson, Ranking Members Courtney and Bordallo, and members of the Subcommittee. I appreciate the opportunity to discuss mobility and transportation command posture and specifically, the state of strategic sealift, including the long-term readiness of our Nation’s surge sealift fleet and the ability of the U.S. commercial fleet and U.S. mariners to meet Department of Defense (DOD) sealift requirements.

The United States relies on sealift capabilities, which include ships, mariners, and strategic ports, to efficiently and effectively deploy military forces, respond to national emergencies, and provide humanitarian assistance on short notice at home and around the world. U.S. strategic sealift consists of both Government-owned vessels and a fleet of privately-owned, commercially operated, U.S.-flag vessels and intermodal systems, and the mariners who operate them. Together, these vessels and mariners transport 90 percent of equipment and supplies that deploy and sustain our military forces enabling responses to any location on the globe.

GOVERNMENT FLEET

The U.S. Government-owned fleet of 61 strategic sealift vessels includes 15 vessels operated by the Military Sealift Command (MSC) and 46 vessels in the Maritime Administration’s (MARAD) Ready Reserve Force (RRF). Together, these vessels form the surge sealift fleet that rapidly deliver military equipment and supplies during major contingencies. These surge ships must be ready for quick activation and be reliable to enable multiple voyages over several months. These ships provide the initial surge of military capability, followed by sustainment shipping capacity which comes from the commercial industry.

The DOD determines the size and readiness of the RRF that is required to meet its sealift requirements. Generally, RRF ships must be ready to load military cargo for transport to areas of operation within five days of receiving a DOD activation order. Operated under contract by commercial U.S. ship managers, these vessels form three-quarters of the Government’s surge sealift capacity and are crewed by volunteer, contract, U.S. mariners.

Readiness of the RRF is a constant challenge given that the average age of the fleet is 43 years. I have concern that despite hard work by the collective sealift team, and a modest increase in program funding, some age-related issues may still present readiness challenges. Repairs of older equipment and aging systems is complex and shipyard periods are taking longer and becoming more expensive as the ships age. In addition, investments are needed to meet new regulatory requirements, such as upgrading and installing lifeboats on RRF vessels. As you are aware, the Navy’s 30-year shipbuilding plan includes a three-prong surge sealift recapitalization strategy that consists of service life extensions, acquiring used commercial vessels, and building new vessels at U.S. shipyards. MARAD and the U.S. Transportation Command (USTRANSCOM) are working with the U.S. Navy to address the challenges of adequately resourcing current readiness as well as the service life extension of nearly the entire RRF fleet out to 60 years. We are working on a strategy for the acquisition and conversion of used ships, including the purchase of two vessels as authorized by the Fiscal Year (FY) 2018 National Defense Authorization Act (NDAA). MARAD will continue to collaborate with our DOD partners to address maintenance, repair, and modernization of the existing RRF vessels to keep the capability viable until open market acquisition or new construction can enhance the overall fleet.

The RRF is a component of the National Defense Reserve Fleet (NDRF), authorized by statute to provide a reserve of ships for national defense and national emergencies. In addition to providing the RRF ships, MARAD manages NDRF vessels used to train merchant mariners and respond to national disasters. Most recently, RRF and NDRF ships were activated to support relief activities of other Government agencies following Hurricanes Harvey, Irma, and Maria, as was done for Hurricanes Katrina, Rita, and Sandy, and the earthquake relief efforts in Haiti. During these deployments MARAD vessels supplied citizens and first responders with housing, meals, logistical support, and relief supplies, including critical Federal Aviation Administration replacement air navigation equipment that was delivered by one of the activated vessel to the Virgin Islands.

Like RRF vessels, training ships in the NDRF are also aging and nearing the end of their life cycles. The six state maritime academies use MARAD training ships to graduate more than three-fourths of entry-level merchant marine officers annually. As a result, ensuring the continued availability of training ships is a critical need and a high priority for MARAD. As a result of the recently agreed upon two-year budget cap deal, the Administration is amending the President’s FY 2019 Budget request to include an addition al $300 million to fund the replacement of two of the oldest training ships that MARAD provides to maritime academies in New York and Massachusetts. Both training ships are well over 50 years old and are serving beyond their designed service lives. The Administration proposes to purchase two used ships that will be converted in U.S. shipyards into modern training ships for our future mariners.

COMMERCIAL FLEET

The Department of Defense does not rely on the Government-owned surge sealift fleet to deliver supplies and equipment to service members and their families stationed overseas during steady-state operations. The U.S.-flag commercial fleet is critical to accomplishing this mission and providing longer term sustainment during military deployments. Access to the commercial US-flag fleet is formalized through the Voluntary Intermodal Sealift Agreement (VISA) program, and the Maritime Security Program (MSP), with the MSP being key to U.S. sustainment capability and supporting the pool of highly trained Mariners necessary to man our government owned RRF fleet when activated. Created in 1996, the program helps maintain an active, privately-owned, U.S.-flag and U.S.-crewed fleet of 60 militarily useful commercial ships operating in international trade. MARAD provides MSP participants an annual stipend and their ships are available “on-call” to support DOD’s global transportation needs. The MSP supports employment for 2,400 U.S. merchant mariners, and provides DOD with assured access to the critical multibillion-dollar global network of intermodal facilities and transport systems maintained by MSP participants.

Ships of the MSP have carried more than 90 percent of the sustainment cargo required for operations in Iraq and Afghanistan and stand ready to play a vital role in support of all future U.S. operations. The militarily useful capacity of the fleet is now at its highest levels ever to meet DOD’s requirements. Two new roll-on/roll-off ships entered the program last year adding 320,000 square feet of new capacity, greatly enhancing DOD’s ability to move heavy armored units worldwide. The FY 2019 President’s Budget Request includes $214 million for MSP to support a $3.6 million per ship stipend. While this request is less than the fully authorized level for MSP, it reflects hard choices as the Administration pursues rebuilding DOD capabilities. The Department supports MSP and recognizes the critical contribution it plays in the nation’s security.

Unfortunately, the U.S. commercial presence in the international maritime domain has been on a steady decline since its peak in World War II and is currently at the lowest level in American history. Of some 40,000 large, oceangoing commercial vessels in the world today, just 181 sail under the U.S. flag, including 81 vessels operating exclusively in international trade. While many factors have contributed to this decline, as Maritime Administrator, I take seriously my charge, as required by statute, to ensure that sufficient U.S.-flag ships and mariners are available to carry our Nation’s domestic and international commerce while meeting DOD sealift requirements.

Access to cargo is critical for ship operators to compete globally and to remain operating under the U.S. flag. Cargo preference laws keep U.S.-flag operators competitive by requiring shippers to use U.S.-flag vessels for the ocean-borne transport of a significant portion of certain cargoes purchased with Federal funds. Specifically, 100 percent of military cargo, and at least 50 percent of non-military Government owned or impelled cargo transported by ocean, must be carried on U.S. flag vessels subject to vessel availability, and fair and reasonable rates. A strong cargo preference mandate is vital to the sustainment of a U.S.-flagged, privately-owned commercial fleet and to the continued availability of American merchant mariners.

In addition to cargo preference laws, U.S. coastwise trade laws, commonly referred to as the Jones Act, help support national security priorities. Jones Act requirements support U.S. shipyards and repair facilities, as well as the supply chains that produce and repair American-built ships, and ensure that intermodal equipment, terminals and other domestic infrastructure are available to the U.S. military in times of war or national emergency. The Jones Act also requires the use of qualified U.S.-flag vessels to carry goods in domestic commerce, which includes transportation between and among the U.S. mainland, Hawaii, Alaska, and Puerto Rico. This requirement results in the employment of the majority of U.S. mariners. It also ensures that vessels navigating daily among and between U.S. coast ports and inland waterways are operating with U.S. documentation and crew rather than under a foreign flag with foreign crew. The U.S. merchant mariners of the Jones Act fleet are our “eyes and ears” on domestic routes and waters and add an important layer of security to our Nation.

MARINERS

Qualified U.S. merchant mariners are essential to operate the surge fleet of 61 Government-owned cargo ships in times of need, whether in peace or war. The use of Reduced Operating Status (ROS) crews onboard RRF ships is the multiplier to maintaining sealift readiness for contingencies. The mariners required to operate these vessels are civilians regularly employed on board U.S.-flag commercial ships. These mariners will be called upon to activate the surge fleet should there be a sealift mobilization, and we will need them all to keep our fleet sailing.

Because of the historically low number of ships in the U.S.-flag, oceangoing fleet over the past several years, I am concerned about the availability of a sufficient number of qualified mariners with the necessary endorsements to operate large ships (unlimited horsepower and unlimited tonnage) and to sustain a prolonged sealift mobilization beyond the first four to six months. Historically, the men and women of the merchant marine have always stood up in times of need to meet any task set for them and would likely extend their time at sea beyond normal tours if called upon to do so. However, it is critical to ensure we have enough qualified U.S. mariners to safely crew our Government vessels so that the readiness of the force is not negatively impacted.

The U.S. Merchant Marine Academy at Kings Point, NY, and the six state maritime academies graduate more than 1,000 entry-level new officers each year; however, there continues to be a shortage of mariners who have the credentials and experience to serve in senior-level positions. These positions include masters (captains), chief engineers, chief mates, and first assistant engineers/mates. On average, it takes 10 years to become a master or chief engineer. One of the contributing factors for this projected shortfall is the declining pool of U.S.-flag ships that employ these mariners.

The FY 2017 NDAA directed MARAD to convene a working group consisting of agency and maritime industry representatives to examine and assess the size of the pool of qualified U.S.-citizen mariners necessary to support the U.S.-flag fleet in times of national emergency and make recommendations to enhance the availability and quality of interagency data. This report, submitted through MARAD to Congress last month estimated a shortfall of 1,800 qualified mariners. The estimate assumed that all qualified mariners would voluntarily report when called upon, and that there will be no ship losses or personnel casualties. Given this assessment, I am working closely with the USTRANSCOM, MSC, the U.S. Coast Guard, and the commercial maritime industry to develop proposals to maintain an adequate number of trained mariners, and to ensure our mariners receive specialized training to operate in contested waters, such as chemical, biological, and nuclear defense training, marksmanship, and shipboard damage control in the event of an attack. Additionally, we are working to better track licensed mariners who may no longer be sailing, but could serve if needed, and to develop tools to understand and analyze changes in the numbers of fully qualified mariners trained and available to meet the Nation’s commercial and sealift requirements at any given time.

CONCLUSION

Our military’s surge sealift capabilities rely on our Nation’s commercial fleet and the mariners who crew these ships—in both peace and war. The decline of the U.S.-flag fleet and the availability of qualified U.S. mariners are of great concern to MARAD and we are exploring a range of options to increase the size of the U.S.-flag fleet with our stakeholders and the Administration. MARAD will continue to leverage, as appropriate, the current mainstays of the merchant marine to support strategic sealift: the Jones Act, MSP, and cargo preference. However, as illustrated by the President’s National Security Strategy, we live in an increasingly competitive world which requires us to rethink how we address long-term strategic issues facing the industry. I am also reminded by a quote from naval historian Alfred Thayer Mahan, that “control of the sea, by maritime commerce and naval supremacy together, means predominant influence in the world.” I believe that while MARAD can support the sealift needs of USTRANSCOM today, we are uncomfortably close to the edge of not being able to fulfill this critical mission in the near term because the world has changed and the previous assumptions regarding a benign environment may no longer be true. You have my commitment that we will consider any and all options intended to foster, promote, and develop the U.S. maritime industry.

Thank you for the opportunity to discuss the role of the merchant marine in meeting our Nation’s sealift needs. I appreciate this Subcommittee’s support for maritime programs and I look forward to working with you to advance maritime transportation interests of the United States.

Oversight of Positive Train Control Implementation in the United States

WRITTEN STATEMENT OF JUAN D. REYES III

CHIEF COUNSEL

OFFICE OF CHIEF COUNSEL

FEDERAL RAILROAD ADMINISTRATION

U.S. DEPARTMENT OF TRANSPORTATION

Before the

Committee on Transportation and Infrastructure,

Subcommittee on Railroads, Pipelines, and Hazardous Materials

United States House of Representatives

“Oversight of Positive Train Control Implementation in the United States”

February 15, 2018

Chairman Denham, Ranking Member Capuano, and Members of the Subcommittee:

Thank you for inviting me to discuss the Federal Railroad Administration’s (FRA) oversight of positive train control (PTC) implementation in the United States. In light of the recent tragic passenger rail incidents, much of the nation’s time and attention has been rightly focused on ensuring that all critical safety measures are in place within our nation’s rail system. Safety is the FRA’s top priority. Our mission at the FRA is to enable the safe, reliable, and efficient movement of people and goods for a strong America, now and in the future. The men and women of FRA execute this important mission every day. Under the leadership of Secretary Elaine L. Chao, FRA executes this objective through developing and enforcing safety regulations, promoting non‑regulatory safety activities, investing in rail services and infrastructure, facilitating national and regional rail planning, and conducting research and development to advance innovative technology solutions.

PTC will represent the most fundamental change in rail safety technologies since the introduction of Automatic Train Control in the 1920s. PTC is a processor-based/communication-based train control system designed to prevent certain train accidents. This technology is capable of automatically controlling train speeds and movements should a train operator fail to take appropriate action for the conditions at hand. For example, PTC can force a train to a stop before it passes a signal displaying a stop indicator, or before diverging on an improperly aligned switch, thereby averting a potential collision.

Currently, 41 railroads are required to implement a PTC system, including 7 Class I freight railroads, 30 commuter and intercity passenger railroads including (Amtrak), and 4 short line and terminal railroads.[1]  These systems are being implemented on approximately 60,000 miles of the 140,000-mile railroad network.

1. Positive Train Control Systems

As first mandated by the Rail Safety Improvement Act of 2008, each Class I railroad and each entity providing regularly scheduled, intercity or commuter rail passenger service must implement an FRA-certified PTC system on:

• its main line over which 5 million or more gross tons of annual traffic and poison- or toxic-by-inhalation hazardous materials are transported, and
• its main line over which intercity or commuter rail service is regularly provided.

Per Federal statute and regulations, PTC systems must be designed to prevent train-to-train collisions, over-speed derailments, incursions into established work zone limits, and the movement of a train through a main line switch in the improper position.  Railroads are primarily implementing the following PTC systems in the United States: (1) the Interoperable Electronic Train Management System (I-ETMS), which is the predominant system being implemented by Class I railroads; (2) the Advanced Civil Speed Enforcement System (ACSES II), which is being implemented by most railroads operating on the Northeast Corridor; and (3) Enhanced Automatic Train Control (E-ATC), which is being implemented by six intercity passenger or commuter railroads.  Each of these PTC systems must be interoperable, meaning the locomotives of any host railroad and tenant railroad operating on the same main line will communicate with and respond to the PTC system, including uninterrupted movements over property boundaries.[2]  

2. Safety Benefits of PTC Technology

The improvement in safety provided by PTC technology comes with significant costs, both in terms of immediate acquisition (industry expenditures will exceed $14 billion for PTC system implementation)[3] and increased operations and maintenance costs (estimated at approximately 15-20% of capital costs per year).

3. Legislative History

1. Rail Safety Improvement Act of 2008

On October 16, 2008, the Rail Safety Improvement Act of 2008 (RSIA) was enacted, establishing the PTC system implementation mandate and the original December 31, 2015 deadline.[4]  As directed by RSIA, FRA issued regulations specifying the essential technical functionalities of PTC systems and FRA PTC certification criteria.[5] 

2. Positive Train Control Enforcement and Implementation Act of 2015

Approximately two months before the original PTC implementation deadline of December 31, 2015, the House and Senate overwhelmingly passed the Positive Train Control Enforcement and Implementation Act of 2015 (PTCEI Act).  The legislation was signed into law on October 29, 2015.[6]  The PTCEI Act extended the deadline for full implementation of PTC systems from December 31, 2015, to at least December 31, 2018. 

The PTCEI Act requires FRA to grant a railroad a deadline extension to a date no later than December 31, 2020, if a railroad submits a written request for an extension that demonstrates it has met the statutory criteria^[7] under 49 U.S.C. § 20157(a)(3)(B):

• Hardware – Installed, by December 31, 2018, all PTC system hardware required for system implementation consistent with railroad’s PTC Implementation Plan (PTCIP);
• Spectrum – Acquired, by December 31, 2018, all spectrum necessary for implementation of the railroad’s PTC system;
• Employee Training – Completed the employee training required under 49 CFR part 236, subpart I for all applicable personnel in any territory, or segment thereof, where the PTC system is currently being operated in revenue service demonstration (RSD) or revenue service;
• Advanced Testing and/or Implementation:
  • For Class I railroads and Amtrak, the railroad has implemented a PTC system or initiated FRA-approved RSD on the majority of territories (e.g., subdivisions or districts) or route miles the railroad owns or controls that are required to have operations governed by a PTC system;
  • For other railroads (i.e., not Class I railroads or Amtrak), the railroad has initiated FRA-approved RSD on at least one territory that is required to have operations governed by a PTC system, or met any other criteria established by FRA;
• Included in its PTCIP an alternative schedule and sequence for implementing a PTC system as soon as practicable, but no later than December 31, 2020; and
• Certified to FRA in writing that it will be in full compliance with 49 U.S.C. § 20157 on or before the deadline in its proposed alternative schedule and sequence.[8] 

Among other requirements, the PTCEI Act also required each railroad subject to the statutory mandate to submit a Revised PTCIP to FRA by January 27, 2016, and mandated that FRA conduct reviews, at least annually, to ensure that each railroad is complying with its PTCIP, including any FRA-approved amendments.[9] 

3. Fixing America’s Surface Transportation Act

Following enactment of the PTCEI Act, FRA encouraged railroads to fully implement PTC systems by December 31, 2018, despite the statutory provision that allows an extension up to 24 additional months.  However, the Fixing America’s Surface Transportation (FAST) Act subsequently enacted on December 4, 2015, explicitly prohibits FRA from requiring a railroad to submit a PTCIP with a December 31, 2018, deadline for full PTC system implementation.[10] As such, the FAST Act authorizes a railroad to submit a plan for implementation with the only deadline being December 31, 2020. If a railroad meets all statutory criteria required for a deadline extension, the PTCEI Act requires the Department to approve a railroad’s request for an extension to complete full PTC system implementation as soon as practicable but no later than December 31, 2020. The FAST Act also removed FRA’s authority to approve or disapprove the PTCIPs submitted to FRA in January 2016 pursuant to the PTCEI Act.[11]

4. Enforcement of the PTC Implementation Mandate

1. Future PTC Enforcement Actions

FRA is authorized to assess monetary civil penalties against any railroad that fails to implement a PTC system by the applicable statutory deadline.[12]  FRA may not assess a civil penalty against a railroad that fails to implement a PTC system by December 31, 2018, but obtains an extension to the December 31, 2018 deadline to a date no later than December 31, 2020.[13]

In general, FRA’s civil penalty schedule recommends, as guidance, a $16,000 civil penalty for a railroad’s failure to timely complete PTC system implementation on a track segment where a PTC system is required.[14]  For any violation of a Federal rail safety statute, regulation, or order under FRA’s authority, however, the statutory minimum civil penalty FRA may assess is $853, and the ordinary statutory maximum civil penalty is $27,904.[15]  FRA may assess a civil penalty for each day the non-compliance continues, but FRA may elect to take enforcement action on a one-time basis or each month, quarter, year, or other interval of time during which the non-compliance continues.[16]

With respect to future enforcement action, FRA is currently considering all options, within the framework established by Congress, and will determine what type of enforcement action will be most effective and appropriate under the circumstances, in order to ensure such action compels a railroad to fully implement its PTC system as efficiently and safely as possible. 

2. Past PTC Enforcement Actions

As mandated by the PTCEI Act, beginning calendar year 2016, FRA must conduct compliance reviews at least annually to verify whether each railroad is complying with its PTCIP.[17]  FRA is authorized to assess civil penalties against any railroad that fails to complete the end-of-year implementation milestones the railroad established in its PTCIP, including the railroad’s end-of-2016 and end-of-2017 milestones for PTC hardware installation, spectrum acquisition, and employee training.[18] 

Twelve Closed Cases and Two Open Cases

For the first time since the RSIA, in June and July 2017, FRA issued Notices of Probable Violation against (i) seven railroads that failed to complete hardware installation milestones they scheduled to complete during calendar year 2016 in their PTCIP[19] and (ii) seven railroads that failed to submit a timely Annual PTC Progress Report (Form FRA F 6180.166, OMB Control No. 2130-0553) to FRA by the statutory March 31, 2017, deadline.[20]  Twelve railroads have paid or, at a minimum, agreed to pay the civil penalty amount and the other two cases are still being negotiated with the railroads.   

5. FRA Efforts to Urge Timely Implementation of PTC Systems

1. Outreach

During calendar year 2017, FRA continued to take action to ensure that railroads implement PTC systems in a timely and safe manner.  For example, FRA sent letters of concern to railroads and certain state officials regarding certain railroads’ failure to complete end-of-2016 hardware installation milestones[21] and railroads that had installed less than 50 percent of all hardware required for their PTC systems as of December 31, 2016.[22]  FRA sent letters to the state departments of transportation (DOT) of Illinois, Indiana, Maryland, New Jersey, Tennessee, and Texas and the state DOTs and state governors of California, Florida, Indiana, Maryland, Massachusetts, New Jersey, New Mexico, New York, Tennessee, and Texas.

On December 27, 2017, ahead of the one-year deadline for PTC implementation, Secretary Chao issued a letter, to all Class I railroads, intercity passenger railroads, and commuter railroads, stressing the urgency and importance of safely implementing PTC systems in the upcoming year and meeting the statutory deadline.  Since December 2017, FRA leadership met with the executive leadership and technical teams of each railroad subject to the statutory mandate to help ensure PTC systems are being implemented as efficiently as possible, discuss any challenges the railroads continue to experience, and the railroads’ plans for compliance with the statutory mandate. 

In addition, FRA continues to provide technical assistance throughout all phases of PTC development and implementation by providing lessons learned guidance and other technical assistance through quarterly meetings with high-risk commuter railroads to help address their issues with implementing PTC systems.  FRA participates, in and provides technical support to, several industry working groups, including the Association of American Railroad’s ACSES II Working Group, the American Public Transportation Association’s (APTA) I-ETMS Working Group for commuter railroads, and the railroad-led E-ATC Working Group.

In support of PTC Research and Development (R&D), FRA has provided technical support for railroads’ development of their PTC systems, including I-ETMS, ACSES II, E-ATC, and the Incremental Train Control System.  In addition, in cooperation with individual railroads, as well as APTA, AAR, and the American Short Line and Regional Railroad Association committees, FRA is supporting, through a combination of funding and technical support, approximately 10 PTC-related research projects.

2. Grant Funding and Financial Assistance

Since 2009, FRA awarded approximately $728 million in grant funding to support railroads’ implementation of PTC systems.  FRA staff also supported the Federal Transit Administration with its evaluation and selection of approximately $197 million in PTC grant funds to 17 commuter and intercity passenger railroads and state and local governments for installation of PTC systems, which were announced on May 31, 2017.  The sources of the approximately $925 million in grant funding are:

• $475 million from FRA’s High-Speed Intercity Passenger Rail Grant Program;
• $86 million from FRA’s Railroad Safety Technology Grant Program;
• $51 million in American Recovery and Reinvestment Act grant funding to Amtrak;
• $116 million in annual capital grant funding to Amtrak (as of November 2017); and
• $197 million in FAST Act funding.

PTC implementation is also an eligible project cost under both the Transportation and Infrastructure Finance and Innovation Act (TIFIA) and the Railroad Rehabilitation and Improvement Financing (RRIF) loan programs. The Department’s Build America Bureau signed two loans, $162 million TIFIA and $220 million RRIF, with the Massachusetts Bay Transportation Authority on December 8, 2017, which provide $382 million for PTC system implementation.  In May 2015, the Department issued a $967 million RRIF loan to the Metropolitan Transportation Authority for the implementation of PTC systems on the Metro-North Commuter Railroad and Long Island Rail Road. 

Approximately $31 billion is currently available for lending under the RRIF program. Lending authority under the TIFIA program is approximately $22 billion; however, this figure is subject to available subsidy budget authority and the levels of risk associated with future loans.

In considering the loans for PTC-related projects, a total amount of $1.349 billion has been obligated since 2011.

3. PTC Staffing and Personnel

FRA staffing to support railroads’ implementation of PTC systems consists of both full-time civil service government positions and contractor support.  Dedicated civil service positions total 15, including a staff director, PTC specialists, a project manager, a senior scientific technical advisor, an engineer, a transportation analyst, and a trial attorney.  In addition, there are 6 civil service positions providing part-time support to address specific issues.  Two PTC positions are currently open; recruitment is in process, but the unique expertise and skills needed are difficult to find.   

FRA understands that throughout 2018, there will be an increase in railroads’ requests for FRA approval of Requests for Amendments to PTCIPs, to conduct PTC field testing and conduct revenue service demonstration, and thereafter more railroads will submit PTC Safety Plans to FRA for review and approval, in order to obtain PTC System Certification.  To address these needs in a manner that supports accelerated implementation timelines, FRA has increased its PTC workforce through hiring and training, and initiated two contracts to provide additional technical assistance. 

6. Railroads’ Progress Towards Meeting Statutory Deadline

FRA interprets “full implementation” to mean that an FRA-certified,[23] interoperable PTC system—including all hardware, software, and other components—has been fully installed and is in operation on all route miles required to have operations governed by a PTC system under 49 U.S.C. § 20157.[24]  Full implementation requires that all controlling locomotives shall be equipped with a fully operative and functioning onboard PTC apparatus, including the controlling locomotives of each railroad subject to the statutory mandate and each tenant railroad operating on a PTC-equipped track segment, except for a railroad’s controlling locomotives that qualify for an exception under 49 CFR § 236.1006.  The statutory mandate and FRA’s implementing regulations also require a PTC system to be interoperable, meaning the locomotives of any host railroad and tenant railroad operating on the same main line will communicate with and respond to the PTC system, including uninterrupted movements over property boundaries.[25]

Under this definition of “full implementation,” FRA anticipates that few, if any, of the 41 railroads currently subject to the statutory mandate will have fully implemented a PTC system by December 31, 2018.  Some railroads, most notably BNSF Railway, Union Pacific Railroad, Southeastern Pennsylvania Transportation Authority, and the Southern California Regional Rail Authority (Metrolink), will have an FRA-certified PTC system in operation on their own locomotives on all route miles required under 49 U.S.C. § 20157, on or before December 31, 2018.  However, it is unlikely that all controlling locomotives of tenant railroads operating on these PTC-equipped railroad properties will be capable of operating with the host railroad’s PTC system by that date.

7. Challenges

During FRA’s meetings with the leadership of the 41 railroads subject to the statutory mandate, railroads commonly conveyed the following ongoing challenges:

• There is a limited number of PTC system vendors and suppliers, all of which are significantly resource-constrained and serving all 41 railroads and their tenant railroads;
• As reliability and stability of PTC systems is still immature, railroads are experiencing significant technical issues with both PTC system hardware and PTC system software that often take considerable time to diagnose and resolve, impacting current operations;
• Host railroads noted that many tenant railroads that operate on main lines requiring PTC system implementation have made variable, and often unknown, progress equipping locomotives with operational PTC technology, while some tenant railroads report that their host railroads are not providing opportunity for testing;
• Railroads have only recently begun testing PTC systems for interoperability;
• Many commuter railroads stated that negotiating legal agreements with certain vendors and suppliers often took multiple years to complete, given various insurance, liability, and State law issues; and
• Railroads noted concern about FRA’s approval review and approval cycle, given the surge in submissions requiring FRA approval in 2018. 

8. Conclusion

PTC implementation is a top priority of the Department and FRA.  Railroads’ successful implementation of PTC systems is an important safety initiative for FRA. It is also an important innovation for the future of rail transportation. Given the complexity of these systems, it is imperative that railroads, suppliers, and governing bodies prioritize and focus their attention on meeting this year’s Congressional deadline. Over the last ten weeks, FRA leadership and PTC technical staff have conferred with all 41 PTC railroads individually, with the vast majority of these meetings occurring in-person here in Washington.  FRA has engaged in candid dialogue with these railroads for several years, but the recent meetings have allowed each railroad’s leadership to share PTC lessons learned, obstacles overcome and still remaining, and plans to either comply with the mandate or qualify for an extension by December 31, 2018. Many of the railroads have expressed optimism about meeting this year’s deadline. Yet, FRA acknowledges that challenges remain for railroads and their suppliers.

FRA believes that the railroads are prioritizing PTC implementation and that, with limited exceptions, a majority of the 41 railroads subject to the mandate will be able to comply with the statutory requirements for an extension by the end of this calendar year.

I appreciate the committee’s interest in our Nation’s infrastructure and, particularly, your assistance to the FRA in ensuring railroads implement this rail-safety technology in a timely manner in accordance with the laws and extensions enacted by Congress.

Thank you, Mr. Chairman, for the opportunity to testify. I am happy to answer any questions.

The Administration’s Framework for Rebuilding Infrastructure in America

STATEMENT OF THE HONORABLE ELAINE L. CHAO

SECRETARY OF TRANSPORTATION

^{BEFORE THE}

COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

UNITED STATES SENATE

^{HEARING ON}

The Administration’s Framework for Rebuilding Infrastructure in America

March 1, 2018

Chairman Barrasso, Ranking Member Carper, and Members of the Committee, thank you for the opportunity to testify today regarding our new infrastructure initiative.

Infrastructure is the backbone of our world-class economy—the most productive, flexible, and dynamic in the world. It is a key factor in productivity and economic growth, which has provided millions of hard working Americans with a standard of living that is the envy of the world. Yet today, these gains are threatened by aging infrastructure that is increasingly congested, in need of repair, and unable to keep pace with technological change.

The challenges are everywhere. With respect to surface transportation infrastructure, traffic congestion and delays cost drivers nearly $160 billion annually. About one-quarter of our Nation’s bridges are structurally deficient or in need of improvement. More than 20 percent of our Nation's roads are in poor condition. And the transportation needs of rural America, which account for a disproportionately high percentage of our Nation’s highway fatalities, have been ignored for too long.

That’s why 12 government agencies have been supporting the President on a comprehensive Infrastructure Initiative, which the President announced as a priority in the 2018 State of the Union address.  Transportation is just one component.  The Initiative includes, but is not limited to, drinking and wastewater, energy, broadband and veterans’ hospitals as well.  It is designed to change how infrastructure is designed, built, financed and maintained in communities across the country. 

The goal of the President’s proposal is to stimulate at least $1.5 trillion in infrastructure investment, which includes a minimum of $200 billion in direct Federal funding.  The guiding principles are to: 1) use Federal dollars as seed money to incentivize infrastructure investment; 2) provide for the needs of rural communities; 3) streamline permitting to speed up project delivery; and, 4) reduce unnecessary and overly burdensome regulations. In addition, a key element of the proposal is to empower decision making at the State and local level, who know best the infrastructure needs of their communities. Half of the new infrastructure funds would go towards incentivizing new State and local investments in infrastructure. A quarter of the Federal funds will be dedicated to addressing rural infrastructure needs, as prioritized by State and local leaders.  And as a former Secretary of Labor, I’m pleased to note this plan also has a workforce component, to help workers access the skills needed to build these new projects.

We’re already applying these principles to one of the Department’s major existing infrastructure grant programs, Infrastructure for Rebuilding America (INFRA). I’m pleased to say communities have responded positively by modifying their proposals to reflect these new criteria. This quarter, the President has generously decided to donate his annual salary to the Department’s INFRA grant program. INFRA directly reflects the President’s priorities by providing dedicated, discretionary funding for projects that address critical issues facing our Nation’s highways and bridges.  Under the INFRA program, States and localities that secure some funding or financing of their own are given higher priority access to Federal funds. In addition, INFRA also reserves at least 25 percent of its funding to be awarded to rural projects. 

The Department is also implementing the President’s “One Federal Decision” mandate, which will help speed up the delivery of new infrastructure and reduce costs. The new process is designed to more effectively and efficiently handle the permitting of complicated, multi-agency projects to meet the President’s new timeline to complete environmental reviews in two years, while preserving environmental protections. The Department is working on a new process to handle the permitting of complicated, multi-agency projects to meet the President’s new expedited time line. 

In addition to permitting reform, the Department is doing its part to help grow the economy and create jobs through an aggressive regulatory reform agenda. Costs associated with our new regulations decreased by $312 million in 2017, and we’re on track to decrease these costs by $500 million in 2018.  So, we are on track to save taxpayers nearly $800 million in regulatory burdens in 2017–2018 alone. A new Mercatus study concluded that DOT removed more regulatory restrictions than any other cabinet department in the President’s first year.

By incentivizing new investment in infrastructure, eliminating overly burdensome regulations, providing support for rural America, and streamlining the permitting process, the Department is helping to improve our quality of life and build a brighter future for all Americans.

Thank you again for the invitation to appear before you today. This Administration welcomes the opportunity to work with you on these issues of critical importance to our country’s infrastructure, so our economy can continue to grow and create good jobs for America’s working families.

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

State of Aviation Safety

STATEMENT OF ALI BAHRAMI, ASSOCIATE ADMINISTRATOR FOR AVIATION SAFETY,

FEDERAL AVIATION ADMINISTRATION (FAA),

BEFORE THE HOUSE COMMITTEE ON TRANSPORTATION & INFRASTRUCTURE,

SUBCOMMITTEE ON AVIATION:

STATE OF AVIATION SAFETY,

FEBRUARY 27, 2018.

Chairman LoBiondo, Ranking Member Larsen, Members of the Subcommittee:

Thank you for inviting me to appear today to discuss the current state of aviation safety.  Aviation safety is the FAA’s top priority.  We are in the safest period in commercial aviation, and we just experienced the safest year in general aviation.  We are actively leveraging our experience from commercial aviation to advance safety in other domains.  We remain committed to working with industry and other stakeholders to identify and address risks.  With the support of this Committee, we have worked tirelessly to take a more proactive approach that instills a culture of safety – both in the industry and inside the FAA.  Additionally, industry’s commitment to engage early on innovative ideas, embrace systems safety, place value on compliance, and work collaboratively with us to develop tools and measures, has been critical to our efforts.

The result is the safest, largest, most complex, and most efficient air transportation system in the world.  Indeed, there has not been a fatal U.S. commercial passenger accident since 2009.  I am proud of the hard work that has gone into providing a basis for achieving this level of safety.  Our success in addressing risk and improving safety in aviation during these past two decades is the result of strong and mature safety partnerships between government and industry to pursue safety improvement collaboratively and in a proactive manner.

We have made significant progress, which I would like to share with you today.

Fostering a Culture of Safety

As the aviation system and its components have become increasingly more complex, we know that our oversight approach needs to evolve to accommodate the future state.  In the last few years, the FAA has been shifting to a risk management based approach for its safety oversight responsibilities.  A key part of this has been safety management systems, or SMS.  With SMS, the FAA is taking a smarter, risk-based, comprehensive approach to managing aviation safety.  It requires an organization-wide safety policy.  It has formal methods for identifying hazards, mitigating and controlling risk, and continually assessing performance. 

Under SMS, the FAA is a more data-driven agency.  We are leveraging this approach in many areas, particularly runway approaches and landing procedures, and air carrier oversight.  Following runway events at San Francisco International Airport last year, in addition to the NTSB investigation, the FAA quickly took action and established a Safety Risk Management Team.  The team is composed of members from across FAA and external stakeholders, and was tasked with identifying the causes of the incident, and taking steps to mitigate and prevent similar occurrences.

In 2016, the FAA replaced its air carrier oversight system for aviation safety inspectors.  Previously, inspectors used a calendar-based, non-scaling tool to conduct oversight.  The FAA is now transitioning to a risk-based, scalable tool that relies on data collection to drive decisions for adjusting oversight plans.  We are also working to incorporate the tools needed for inspectors to identify and adjust surveillance during times of rapid growth, or downsizing into guidance and training materials.  These steps demonstrate FAA’s transition from its legacy oversight model to a data-driven approach – a key part of SMS.

SMS allows operators to structure a system that matches the size, complexity, and business model of its organization.  The requirement for part 121 commercial carriers to have an SMS comes into effect on March 9, 2018.  SMS gives airlines a set of business processes and management tools to examine data gathered from everyday operations, isolate trends that may be precursors to incidents and accidents, take steps to mitigate the risk, and verify the effectiveness of the program.  SMS stresses more than compliance with technical standards.  It puts an increased emphasis on the overall safety performance.  Most importantly, SMS creates a safety culture that assures hazards are identified, that actions are taken, and that results are measured.  Then the process repeats itself.  In the business of aviation, safety cannot be an “add-on” – it must be built in.  Our stakeholders understand that and we thank the Committee for its support.

Another part of our evolving oversight model is our embrace of a new compliance philosophy, which emphasizes accountability of all stakeholders.  It clearly distinguishes between compliance, which is the goal; and enforcement, which is one of our many tools.  To emphasize, compliance is expected and required of everyone who operates in the airspace.  We recognize our role in assuring the public of a safe system, and we will not hesitate to use strict enforcement where necessary. 

I am very encouraged by the results thus far.  Communications are now more open and working relationships with certificate holders has improved.  Certificate holders are now more likely to call when they have questions; whereas in the past, they were might have been more reluctant to contact the FAA for fear of enforcement action.  We are also seeing industry take a proactive approach to address deficiencies, even before being contacted by an FAA inspector.  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.  Safety culture 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.  That, in turn, requires mutual cooperation and trust.

Transforming the FAA           

We are actively working to facilitate policies and management processes that promote a broad safety culture transformation both within and outside of our organization.  Two of our biggest service offices, flight standards and aircraft certification, have undergone major realignments to better meet the needs of a changing industry.

Flight Standards Service (FS) plays a vital role in making the U.S. aviation system the world’s safest.  We want to make sure we maintain that high level of safety.  We are in the process of restructuring the FS organization.  By moving away from an organizational structure based on geographic locations to an organization built around functions, FS will operate with greater accountability and greater flexibility to adapt to change.  The FAA expects the restructuring to yield benefits to both the agency and the aviation community by strengthening our ability to keep pace with changes in the aviation industry.  We will also be able to increase our ability to maximize fixed resources, and better ensure that our employees develop and interpret regulations and policies consistently.

Additionally, in July 2017, the Aircraft Certification Service (AIR) was realigned from a product-based structure to a functional alignment.  The new organizational structure is designed to enable transformation.  The newly created Organizational Performance Division will oversee AIR’s roadmap to transformation, and establish and track effectiveness metrics for both the FAA and industry.

With respect to aircraft certification process improvements, the FAA is moving beyond the initiatives that were driven by the FAA Modernization and Reform Act of 2012.  The Aircraft Certification Service is transforming to meet the demands of today’s dynamic aviation environment by moving to a systems approach.  Emphasis will be placed on up front planning for new technologies, risk based level of involvement in certification programs and a robust oversight program.  For example, in December of 2016, the FAA issued a complete overhaul of 14 CFR part 23, the rules for small aircraft certification.  Instead of prescriptive standards that limit innovation, the new rules define performance-based objectives and give industry the flexibility to determine the best and safest way to meet them.  On the international front, we signed agreements with the European Aviation Safety Agency and Transport Canada to accept each other’s approvals of Technical Standards Orders and to validate basic approval with no technical review.

In previous hearings, there was discussion about the effectiveness of the Organization Designation Authorization, or ODA, and our use of metrics.  Working closely with industry, we developed the ODA Scorecard.  The scorecard is used to define mutually agreed measures, identify areas that need greater focus, and identify issues and concerns with respect to FAA and ODA holders' performance.  We piloted the program in 2015, and set up a joint FAA/Industry Continuous Improvement team in 2016.  In 2016, 40 companies participated.  The goal is for our measures of success to show a year-to-year improvement.  I am pleased to report that in just over a year, we have realized performance improvements in both FAA certification offices and ODA holders.  The results are published on our website.  By measuring appropriate indicators and developing action plans to continuously improve joint industry and FAA performance, we are positioned to optimize our involvement with no adverse impact on safety.

Working with stakeholders

With the advent of new entrants such as unmanned aircraft systems, commonly referred to as UAS or drones, and commercial space operations, a balanced approach that involves collaboration between government and industry is needed.  We strive to engage stakeholders throughout the lifecycle of policymaking.  For example, the FAA’s commitment to the safe, secure, and efficient integration of drones and the expansion of routine drone operations requires resolving several key challenges to enable this emerging technology to safely achieve its full potential.  Because drone technology is evolving at such a rapid pace, we involve stakeholders in framing challenges, prioritizing activities, and developing consensus solutions.  By leveraging this expertise, we ensure that the FAA maintains its position as the leader in aviation safety. 

The Drone Advisory Committee (DAC), formed in 2016, is a prime example of stakeholder engagement.  Its members include representatives from industry, government, labor, and academia.  The DAC allows us to look at drone use from every angle, while considering the different viewpoints and needs of the diverse unmanned aircraft systems community.  Our collaborative working relationships with groups such as the DAC will help inform and prioritize integration activities, ensure we remain engaged with industry trends, and maintain clear channels of communication to convey expectations and solicit feedback.  

The impressive gains in safety are due in part to the aviation industry and government voluntarily investing in the right safety enhancements.  The work of the Commercial Aviation Safety Team (CAST), along with new aircraft, regulations, and other activities, reduced the fatality risk for commercial aviation in the United States by 83% from 1998 to 2008.  The CAST model uses data to develop an understanding of the best actions or interventions to prevent accidents.  The goal was to collaborate on identifying the top safety areas through the analysis of past accident and incident data, charter joint teams of experts to develop methods to understand the chain of events leading to accidents, identify effective interventions to address these safety areas, and remain focused on implementing these critical interventions.

CAST has been extremely successful.  It has moved beyond the historic approach of examining past accident data to a more proactive approach that focuses on detecting risk and implementing mitigation strategies before accidents or serious incidents occur with a disciplined, data driven focus.  Using data from non-accident sources and voluntary reporting programs, CAST has adopted nearly 100 safety enhancements.  CAST aims to further reduce the U.S. commercial fatality risk by 50% from 2010 to 2025.

In a related effort, the FAA is working to reduce safety challenges in general aviation (GA) as well.  Much like CAST, the General Aviation Joint Steering Committee (GAJSC), which was formed in the mid-1990s, established a data-driven, aviation-safety strategy to reduce fatal accidents in GA.  The FAA, industry, and the general aviation community are working together to mitigate the risks that lead to fatal GA accidents.  One result of this collaboration is the FAA’s policy on non-required safety enhancing equipment referred to as NORSEE.  NORSEE encourages GA aircraft owners to voluntarily install equipment to provide pilots with better overall situational awareness.

Working with the GA community alongside industry, the efforts have been successful.  We have targeted, and have been working toward, a yearly 1% reduction in fatal GA accidents to bring a cumulative 10% reduction by the close of fiscal year 2018.  I am proud to say that we have already exceeded our original goal, making last year one of the safest years we have had in general aviation.

The collaboration between government and industry, at all levels, has been instrumental to the success we have achieved in the improvement in aviation safety.  Our continued success in advancing aviation safety depends on these strong safety partnerships built on trust and the ability to share and protect voluntarily provided safety information.  As the work of CAST and the GAJSC has evolved, so has the agency’s ability to collect and analyze safety information.

In 2007, the FAA launched the Aviation Safety Information Analysis and Sharing, or ASIAS, program to help transform safety analysis from a forensic approach, looking at accidents and incidents after they occurred, to a risk management approach, allowing for proactive discoveries of safety concerns before they lead to significant events.  It took years to establish voluntary safety programs and build trust within the community.  Congress has been an important advocate in helping us protect vital safety information.  These safety information protections are imperative so that we can continue to provide the environment in which safety personnel are voluntarily providing safety information.  This, in turn, provides carriers and government with valuable insight into potential systemic safety issues. 

ASIAS partners with CAST and the GAJSC to monitor known risk, evaluate the effectiveness of deployed mitigations, and detect emerging hazards.  There are currently 46 part 121 member air carriers, 63 corporate/business operators, five manufacturers and two maintenance, repair, and overhaul organizations participating in ASIAS.  The program continues to evolve, and has matured to the point that the FAA and industry can leverage voluntarily provided safety data from operators that represent 99 percent of U.S. air carrier commercial operations. ASIAS has established metrics that enable CAST and the GAJSC to evaluate the effectiveness of mitigations.  It is also expanding to support other areas in aviation, such as rotorcraft.

We also regularly engage with our Federal and international partners to improve safety. Along with our law enforcement partners, the FAA maintains a multi-layered oversight of the aviation system, including its aircraft and airmen registry.  This includes a team of special agents from the FAA who work with domestic and international law enforcement partners to investigate cases involving fraudulent aircraft registrations.  The agency is constantly working to enhance the integrity of registry information, and is developing a plan to significantly upgrade and modernize the aircraft registration process to make the system more effective.

The online pilot record database is an example of the FAA’s and Congress’ commitment to establishing an electronic database for pilot records.  In December of 2017, the FAA released a beta version of the database.  We are deploying the database in phases to ensure minimal disruption to air carrier and operator access to existing pilot records.  Initial feedback of the database has been positive.  When complete, the database will enable air carriers to easily check the qualifications and background of pilots as part of the hiring process.

As safety management systems mature, our reliance on sound safety analysis to identify risks to the aviation system, mitigate hazards and track safety enhancements, will be key to sustaining a safe and efficient airspace.  This type of capability is achieved only through sustained safety partnerships and the reporting of critical safety information among stakeholders.  We must collaborate on safety analysis and best practices, and monitor safety performance and implementation of mitigation strategies.  SMS, risk-based decision-making, and collaborative transparent information sharing will be the cornerstone for future FAA oversight and industry’s management of the safety risks that affect their operations.

Before I conclude my remarks, I would be remiss if I did not acknowledge the support of Chairman Shuster and Subcommittee Chairman LoBiondo.  You have been instrumental in providing the FAA with the direction and necessary resources to maintain our position as a global leader in aviation.  I thank you both for your leadership and wish you well as you retire from Congress.

Conclusion

We have been diligent in our efforts to address what is at the heart of your direction: that the system be safe, responsive, and flexible.  We have made significant progress in restructuring our organization to adapt to the new business models, while keeping safety at the forefront of any decision.  It is because of the collective hard work of the men and women of the FAA, the work of Congress, and stakeholders that aviation is the safest it has ever been.  Aviation safety is, and must always be, our number one priority.  There can be no compromise on safety.  Yet, we do not want to stifle innovation.  Working together with all interests, we are confident we can balance safety and innovation.  The Administration is committed to working with Congress to foster American innovation and solidify America’s role as the global leader in aviation.

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

Oversight of the National Highway Traffic Safety Administration

Testimony of

Heidi King, Deputy Administrator

National Highway Traffic Safety Administration

Before the

Subcommittee on Digital Commerce and Consumer Protection

Committee on Energy and Commerce

U.S. House of Representatives

“Oversight of the National Highway Traffic Safety Administration”

February 14, 2018

Good morning Chairman Latta, Ranking Member Schakowsky, and Members of the Subcommittee. I am truly honored to testify before you today. I am proud to have served the Members of this Committee through the 112th session of Congress.

Today, I am excited to tell you about how NHTSA is acting on its mission of saving lives, preventing injuries, and reducing economic costs. As the automotive transportation landscape is changing at a rapid pace, NHTSA is adapting our mission execution to assure safety while remaining in step with changing technology, addressing new and emerging risks, and encouraging industry innovation.

Safety is the Department of Transportation’s top priority.

**

37,461 lives were lost in motor vehicle crashes in 2016. Combined with an increase the year prior, this represents the largest proportionate increase in highway fatalities in my lifetime. The loss of life is unacceptable.

This rise in fatalities has occurred during a time of great change in our transportation landscape. More Americans are choosing to bicycle, to walk, and to rideshare. Both our vehicles and our roadways, and the way we interact with them, are evolving at a rapid pace.

As the average lifespan of motor vehicles increases, Americans are keeping older cars more than ever before, although we know that newer cars are safer: an occupant of a newer car is much more likely to survive a crash than an occupant of an older car. This underscores why it is so incredibly important to ensure that all Americans have access to safe, affordable, fuel-efficient vehicles.

Adapting to changes in how Americans travel, NHTSA will continue to employ risk management best practices across all of our activities to identify, assess, mitigate and continuously improve our management of highway safety risks.

**

One of the emerging risks that NHTSA is fully committed to mitigating is the problem of drug-impaired driving.

We know that many people switch between alcohol and drugs, or consume them together, and we need to consider both drugs and alcohol in addressing the very serious problem of impaired driving.

To that end, NHTSA has announced an initiative to strengthen the strategies necessary to reduce drug-impaired driving on our nation’s roads. Next month, NHTSA will launch the national dialogue in a ‘Call to Action’ – a national summit that will bring together experts and stakeholders to share best practices and identify near term and longer term strategies to save lives.

This is intended to build upon the previous work of the Agency and complement the efforts of our state and local partners.

I have heard from many members of this Subcommittee that you share our concern and have offered support for this initiative. I am tremendously grateful for your partnership on this endeavor.

**

In addition to changing consumer preferences and emerging DUID risk, NHTSA is committed to assuring safety while also encouraging advances in innovation, automation, and changing automotive technology.

Last September, Secretary Elaine L. Chao released A Vision for Safety 2.0, our new voluntary guidance to encourage the safe introduction of emerging automated technologies onto our public roadways. A Vision for Safety paves the way for the safe testing and deployment of Automated Driving Systems by encouraging best practices for manufacturers and state and local governments, and by fostering open communication between the public, industry, and the various stakeholders.

Secretary Chao has announced that the Department of Transportation will release updated guidance – version 3.0 – later this year, which will further facilitate the adoption of automated transportation systems through a holistic, multi-modal framework. We are excited by the benefits automated technologies can bring to safety, mobility, and the efficiency of our transportation networks, and we look forward to hearing from the public, Members of Congress, and industry in the coming months on how we can further reduce barriers to accelerate the safe deployment of potentially life-saving technologies.

**

As technology changes, consumer choices evolve, and social trends continue, you have the commitment of each member of the NHTSA team that we will prioritize our mission in all that we do: To save lives, prevent injuries and to reduce the economic costs of traffic crashes.

Thank you, and I look forward to your questions.

The State of the U.S. Flag Maritime Industry

STATEMENT OF MARK H. 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, 

THE STATE OF THE U.S. FLAG MARITIME INDUSTRY,
January 17, 2018

MARITIME TRANSPORTATION INFRASTRUCTURE

Ports and the U.S. Marine Transportation System are critical to our Nation’s economy and to the wellbeing of the U.S. Merchant Marine.  As required by 46 U.S.C. § 50302, MARAD established a port infrastructure development program called StrongPorts to better support the development of our port facilities. That program delivers tools and technical assistance to ports and works with state and local partners to integrate ports and maritime transportation into the larger U.S. surface transportation system.  MARAD also oversees funding for port infrastructure projects provided through the DOT grant programs.

The America’s Marine Highway Program (AMHP) is designed to expand the use of our Nation’s navigable waterways to relieve landside congestion, reduce air emissions, provide new transportation options, and generate other public benefits by increasing the efficiency of the surface transportation system. There are currently 24 designated Marine Highway Routes.

The program encourages partnerships with a variety of stakeholders including shippers and manufacturers, truckers, ports and terminals, ocean carriers, and domestic vessel operators to create new supply chain options that use our waterways. America’s Marine Highway projects also allow for the optimization of equipment relocation and help to reduce wasteful movement of empty shipping containers.

CONCLUSION

At MARAD, we strive to serve the American people and uphold their right to a government that prioritizes their security, their prosperity, and their interests. MARAD implements programs that promote the economic competitiveness, efficiency, safety and productivity of the U.S. maritime transportation system while ensuring that sealift capability and capacity is available to support the national and economic security needs of the Nation.

I appreciate the Subcommittee’s continuing support for maritime programs and I look forward to working with you on advancing the U.S. Maritime Industry in the United States. I will be happy to respond to any questions you and the members of the Subcommittee may have.

UNMANNED AIRCRAFT SYSTEMS INTEGRATION: EMERGING USES IN A CHANGING NATIONAL AIRSPACE

STATEMENT OF DANIEL K. ELWELL, DEPUTY ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION, BEFORE THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE, SUBCOMMITTEE ON AVIATION: UNMANNED AIRCRAFT SYSTEMS INTEGRATION: EMERGING USES IN A CHANGING NATIONAL AIRSPACE, NOVEMBER 29, 2017

Chairman LoBiondo, Ranking Member Larsen, Members of the Subcommittee:

I appreciate the opportunity to appear before you today to discuss a subject that is at the forefront of aviation; Unmanned Aircraft Systems or UAS. UAS—also referred to as drones— are the fastest growing field in aviation. They are being used today to examine infrastructure, survey agriculture, provide emergency response support, examine damage caused by time or disaster, and to go places that would otherwise be dangerous for people or other vehicles. Entrepreneurs around the world are exploring innovative ways to use drones in their corporate activities. And we have witnessed a significant influx of new, casual users of UAS—people who fly drones for recreation or entertainment—into the National Airspace System (NAS). The need for us to fully integrate this technology into the NAS continues to be a national priority.

Accompanying me today is Earl Lawrence. Earl is the Executive Director of the FAA’s UAS Integration Office and is responsible for facilitating all of the regulations, policies, and procedures required to support the FAA’s UAS integration efforts. The Department of Transportation and FAA’s vision is ambitious. We intend to fully integrate UAS into the NAS, with UAS operating harmoniously, side-by-side with manned aircraft, occupying the same airspace and using many of the same air traffic management systems and procedures. Our vision goes beyond the accommodation practices in use today by most countries, which largely rely on operational segregation to maintain systemic safety. As we work to realize this vision, UAS must be introduced to the NAS incrementally to ensure the safety of people and property both in the air and on the ground.

Two years ago, we appeared before this committee to discuss the status of the safe, incremental integration of drones into the NAS. In that time, we have made significant progress toward our goal of fully integrating this new class of aircraft and their operators. Today, I would like to highlight for you some of our accomplishments, our challenges, and our ongoing work to build upon our successes as we move forward with the next phase of UAS integration.

Small UAS Rule

At the outset, the FAA recognized that managing the safe integration of drone technology into the world’s busiest and most complex airspace system would require the participation of all stakeholders—the FAA, industry, aviation groups, and our public safety and security partners, to name just a few. The FAA adopted an approach of engagement and collaboration with these stakeholders in the development of the first set of operating rules for small UAS, which forms the bedrock of the regulatory framework for full UAS integration. Because UAS technology is changing at a rapid pace, a flexible regulatory framework is imperative. Our goal is to provide the basic rules for operators, instead of specific technological solutions that could quickly become outdated. We’ve met this goal with the final small UAS rule (14 CFR part 107), which went into effect on August 29, 2016.

Part 107 introduces a brand new pilot certificate specific to UAS—the Remote Pilot Certificate. Unlike an airman certificate for manned aircraft issued under part 61, which necessarily has more stringent requirements, an individual can obtain a Remote Pilot Certificate under part 107 by passing an aeronautical knowledge test at an FAA-approved testing center. Alternatively, if the individual already holds a current non-student part 61 airman certificate, the individual may complete an online UAS training course in lieu of the knowledge test. Remote pilots must be 16 years of age, be able to read, speak, write, and understand English, and be in a physical and mental condition to safely operate a small UAS. The certificate is valid for two years, after which the remote pilot must take a recurrent knowledge test. Since this rule went into effect, the FAA has issued almost 70,000 remote pilot certificates and 92% of the people who take the remote pilot certificate knowledge exam pass it.

The provisions of part 107 are designed to minimize risks to other aircraft and people and property on the ground. Among other things, the regulations require pilots to keep an unmanned aircraft within visual line-of-sight. Operations are allowed during daylight and twilight hours if the drone has anti-collision lights. The new regulation also addresses altitude and speed restrictions as well as other operational limits such as prohibiting flights over unprotected people on the ground who are not directly participating in the UAS operation.

In keeping with our goal of a flexible framework, some provisions of part 107 may be waived. Operators may apply on our Web site for a waiver to allow drones to fly in controlled airspace or at night, for example. Applicants must demonstrate that their proposed operation can be conducted safely outside of the provisions of part 107. Part 107 allows for operations in Class G airspace without prior air traffic control authorization. Operations in Class B, C, D, and surface area E airspace, all of which exists primarily around airports, may be permitted with authorization from the Air Traffic Organization (ATO) using the online waiver portal. To date, the FAA has issued 1,200 operational waivers and 11,000 authorizations or waivers for controlled airspace operations. Consistent with our risk-based approach, we are increasingly able to grant waivers for more complex operations, including one recently granted to CNN for operations over people. And we are taking steps to further streamline the waiver and authorization process.

The small UAS rule provides UAS operators with unprecedented access to the NAS while also ensuring the safety of the skies. However, it is only the first step in the FAA’s plan to integrate UAS into the NAS. Consistent with our incremental approach to integration, we are using a risk-based analysis to facilitate expanded UAS operations, including operations over people, operations beyond visual line-of-sight, and transportation of persons and property.

Supporting Emergency Response

UAS have been invaluable in supporting response and recovery efforts following the widespread devastation brought about by recent hurricanes. When winds and floodwaters damaged homes, businesses, roadways and industries, a wide variety of agencies and companies sought FAA authorization to fly drones in the affected areas. We responded quickly, issuing a total of 355 airspace authorizations to ensure that those drones could operate safely.

Drones played a critical role in performing search and rescue missions; assessing damage to roads, bridges, and other critical infrastructure; and helping insurance companies act more quickly on claims coming in from homeowners. And in Puerto Rico, the FAA quickly approved the first UAS operation of its kind to provide essential communication services. We granted AT&T an exemption from part 107 to operate a 60-pound tethered drone to provide temporary voice, data, and internet service while construction crews rebuild a tower to restore permanent service on the island.

The FAA’s ability to quickly authorize UAS operations after these storms was especially critical because most local airports were either closed or dedicated to emergency relief flights, and the fuel supply was low. As Administrator Huerta recently said: “Essentially, every drone that flew meant that a traditional aircraft was not putting an additional strain on an already fragile system. I don’t think it’s an exaggeration to say that the hurricane response will be looked back upon as a landmark in the evolution of drone usage in this country.”

UAS Integration Pilot Program

The FAA’s commitment to the safe and efficient integration of UAS and the expansion of routine UAS operations requires resolving several key challenges to enable this emerging technology to safely achieve its full potential. Congress recognized a number of these challenges in the FAA Extension, Safety, and Security Act of 2016. Technical issues to ensure that a drone maintains a safe distance from other aircraft and that the pilot retains control of the drone and can comply with air traffic instructions must be addressed before UAS operations beyond visual line-of-sight can become routine. And there are additional policy questions raised by UAS use, including security, both physical and cyber, privacy, and enforcement.

To address these challenges and leverage the experience of our stakeholders, on October 25, 2017, President Trump directed the Department of Transportation to launch an initiative to safely test and validate advanced operations for drones in partnership with state and local governments in select jurisdictions—the UAS Integration Pilot Program. The results of this program will be used to improve the safe and secure integration of UAS into the NAS and to realize the benefits of this technology in our economy.

The pilot program will help tackle the most significant challenges in integrating drones into the NAS while reducing risks to public safety and security. Ultimately, it is expected to help the Department of Transportation and the FAA develop a comprehensive regulatory framework that will allow more complex low-altitude operations; identify ways to balance local and national interests; improve communications with local, state, and tribal jurisdictions; address security and privacy risks; and accelerate the approval of operations that currently require special authorizations.

As stated in the Federal Register Notice announcing the pilot program application process, the deadline for Lead Applicants—state, local, or tribal government entities—to submit a notice of intent to participate in the program was yesterday, November 28, 2017. Private sector companies or organizations, UAS operators, public sector entities, and other stakeholders may submit a request to be on the Interested Parties List by December 13, 2017. After evaluating the applications, the Department of Transportation will invite a minimum of five government/private sector partnerships to participate in the pilot program.

UAS Airspace Authorizations and Traffic Management

Starting in spring 2017, the FAA began publishing UAS facility maps, which indicate safe UAS flight altitudes in areas of controlled airspace around airports. Part 107 operators can use these maps to submit better airspace authorization requests. This was a first step toward setting up a data exchange program with external stakeholders, and on October 23, 2017, the FAA launched a prototype evaluation of the Low Altitude Authorization and Notification Capability (LAANC). LAANC is a joint public-private initiative for the FAA to work with industry to develop the requirements for an application that automates the process for UAS operators to get authorization to fly in certain classes of airspace. In the future, operators will also be able to use LAANC to notify airports and Air Traffic Control when they want to fly within five miles of an airport, as required by the Special Rule for Model Aircraft. The initial LAANC prototype evaluation will cover 10 air traffic facilities and nearly 50 airports. A list of these facilities and airports can be found on the FAA's Web site at: www.faa.gov/uas/programs_partnerships/uas_data_exchange/airports_participating_in_laanc/.

LAANC is the first step toward implementing UAS Traffic Management (UTM). The FAA is working with NASA and industry to develop and eventually deploy a UTM concept, which will enable more routine beyond line-of-sight operations. NASA’s concept specifically addresses small UAS operations, primarily below 400 feet above ground level, in airspace that contains low-density manned aircraft operations, where air traffic services are typically not provided. NASA has developed a phased approach for their UTM platform, building from rural to urban and from low- to high-density airspace. In April 2016, NASA coordinated with six FAA-selected test sites to perform phase one testing of the UTM research platform. A Research Transition Team has been established between the FAA and NASA to coordinate the UTM initiative, as the concept introduces policy, regulatory, and infrastructure implications that must be fully understood and addressed before moving forward with technology deployment.

Security and Enforcement

As Congress recognized in the 2016 FAA Extension, the security challenges presented by UAS technology require a layered and integrated government response. Addressing one challenge, the Department of Homeland Security is leading an interagency coordinated effort by federal partners, including the FAA, the Department of Justice and the Department of Defense, to identify and evaluate technologies that help detect and track unmanned aircraft movement through the NAS. We continue to work closely with our government and industry partners to evaluate these drone-detection technologies, including evaluations around airports in New York, Atlantic City, Denver, and Dallas-Fort Worth.

The potential for conflicts between manned and unmanned aircraft has become a very real challenge in integrating these new technologies into the NAS. We are seeing an increased number of drone-sighting reports from pilots of manned aircraft. This year, we’ve received an average of almost 200 reports from pilots each month—over 2,000 to date—which is significantly higher than the number received in 2016 and 2015. In 2016, we received approximately 1,800 complaints, compared to 1,200 complaints the year before.

As the Federal agency responsible for the safety of the flying community, the increasing number of these reports is of great concern. As a result, the FAA has actively engaged in public education and outreach efforts, such as “Know Before You Fly” and the small UAS registration process. Sometimes, however, education is not enough. To be clear, if an unauthorized UAS operation is intentional, creates an unacceptable risk to safety, or is intended to cause harm, strong and swift enforcement action will be taken. Earlier this year, we announced a comprehensive settlement agreement with a UAS operator that flew drones in congested airspace over New York City and Chicago, and violated airspace regulations and aircraft operating rules.

One of our ongoing challenges in this area, however, is the limited amount of information available to our inspectors when they need to contact a UAS operator or take action to address a potential violation of our regulations. As Congress has recognized, identification and tracking of UAS is critical to the full integration of this technology in the NAS. As discussed further below, the FAA established an Aviation Rulemaking Committee (ARC) to develop standards and provide recommendations for remote identification and tracking of UAS this year.

Engagement with the law enforcement community also is paramount to ensuring that our airspace remains the safest in the world. In January 2015, the FAA published guidance for the law enforcement community on the UAS Web site, and has been actively engaging with law enforcement agencies at local, State, and Federal levels through a variety of channels. The goal of these efforts is to reduce confusion in the law enforcement community about how to respond to UAS events. The FAA encourages citizens to call local law enforcement if they feel someone is endangering people or property on the ground or in the sky. Local law enforcement will then work with local FAA field offices to ensure these safety issues are addressed. We have also started a webinar series specifically geared toward educating law enforcement and other public safety officials about how to enforce unsafe or unauthorized operations, and how to fly UAS safely and legally when they need to.

Moving Forward

As we move forward with UAS integration, we need to continue to involve all stakeholders in framing challenges and finding solutions. By leveraging this expertise, we will continue to ensure that the FAA maintains its position as the global leader in aviation safety. This month, I attended a meeting of the Drone Advisory Committee (DAC). Our main goal with the DAC moving forward is to harvest the collective technical and operational expertise of its members, which include representatives from industry, government, labor, and academia. With the announcement of the UAS Integration Pilot Program, we will ask the DAC to provide us with the technical and operational recommendations we need to implement the program. In addition, the DAC will continue to assist us with determining what the highest-priority UAS operations are and how we can enable access to the airspace needed to conduct these operations.

We are also making headway with two Aviation Rulemaking Committees (ARC) tasked with making recommendations for the next critical steps in the pathway to full UAS integration: remote identification and tracking of UAS and integrating larger UAS into the NAS. This past spring, we established the UAS Identification and Tracking ARC to make recommendations about technologies that can be used to remotely ID and track UAS, and that would address some of the concerns of the law enforcement and security communities. The ARC recently concluded its work and submitted its report to us last month; we are now reviewing the committee’s recommendations and expect to publish this report in the coming weeks.

In addition, we recently convened a UAS in Controlled Airspace ARC, which will provide recommendations on integrating larger UAS into the NAS. It will develop and recommend scenarios that will encompass the most desired operations, identify gaps in research and development needed to successfully integrate larger UAS into controlled airspace, and develop and recommend up to five prioritized changes to policies and procedures that will spur integration. The ARC held its second meeting at the end of October 2017 and will continue to hold regular meetings over the next 15 months.

Before I conclude my remarks, I would be remiss if I did not acknowledge the support that Chairman LoBiondo has provided to the FAA and, in particular, the William J. Hughes Technical Center in Atlantic City, New Jersey. In its role as the core facility for sustaining and modernizing the air traffic management system, the Technical Center has been instrumental in the FAA’s efforts to facilitate new entrants and users to the NAS. I thank Chairman LoBiondo for his leadership and wish him well as he retires from Congress.

Conclusion

The FAA’s progress in accommodating new technologies and operations demonstrates that the agency is well positioned to maintain its status as the global leader in safe and efficient air transportation. The progress we have made would have seemed unimaginable not long ago. We know, however, that these accomplishments are only the first step. There are many important issues yet to be addressed and we will continue to work with our stakeholders as we write the next chapter in aviation history. This concludes my statement. I will be glad to answer any questions you have.

Regulatory Reform Task Forces Check-In

STATEMENT OF

JAMES OWENS

ACTING GENERAL COUNSEL

U. S. DEPARTMENT OF TRANSPORTATION

BEFORE THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

SUBCOMMITTEE ON GOVERNMENT OPERATIONS

AND

SUBCOMMITTEE ON HEALTH CARE, BENEFITS, AND ADMINISTRATIVE RULES

U.S. HOUSE OF REPRESENTATIVES

Regulatory Reform Task Forces Check-In

OCTOBER 24, 2017

Good morning Chairman Meadows, Chairman Jordan, Ranking Member Connolly, Ranking Member Krishnamoorthi, and members of the Subcommittees.  I am James Owens, Acting General Counsel of the U.S. Department of Transportation (DOT or the Department).  Thank you for inviting me to testify today on the subject of our agency’s progress implementing President Trump’s Executive Order (EO) 13771, Reducing Regulation and Controlling Regulatory Costs, and EO 13777, Enforcing the Regulatory Reform Agenda.  I am grateful for the opportunity to present the work of the Department, under the leadership of Secretary Chao, in the area of regulatory reform and to describe what our Agency is doing to reduce regulatory burdens and costs of compliance consistent with our safety mission.

Background 

DOT has one of the largest rulemaking portfolios in the Federal Government.  The various components of the Department of Transportation—nine operating administrations and the Office of the Secretary—have important statutory responsibilities for a wide range of regulations.  For example, DOT regulates safety in these transportation sectors: aviation, motor carrier, railroad, motor vehicle, transit, pipeline safety, and commercial space.  The Department also regulates aviation consumer protection and economic issues, and manages a huge grant-making apparatus for highways, airports, mass transit, the maritime industry, railroads, motor transportation, and vehicle safety.  Additionally, the Department assists in crisis management and relief efforts.  The Department does this by providing regulatory relief (such as waivers) and transportation services (such as air traffic control) to crisis-affected areas to ensure that personnel and supplies can quickly access those areas to provide the appropriate crisis response.  Finally, DOT has to handle its own internal management as a major employer and property owner - developing policies that implement a wide range of regulations that govern programs such as acquisition and grants management, access for people with disabilities, environmental review, energy conservation, information technology, occupational safety and health, property asset management, seismic safety, security, and the use of Department aircraft and vehicles.

To carry out its responsibilities in accordance with principles of good governance, the Department embraces a regulatory philosophy that emphasizes transparency, stakeholder engagement, and regulatory restraint. Our goal is to allow the public to understand how we make decisions, which necessarily includes being transparent in the way we measure the risks, costs, and benefits of engaging in—or deciding not to engage in—a particular regulatory action. It is our policy to provide an opportunity for public comment on such actions to all interested stakeholders.  

The Department also embraces the notion that there should be no more regulation than necessary.  We emphasize consideration of non-regulatory solutions and have rigorous processes in place for continual reassessment of existing regulations.  These longstanding processes provide that regulations and other agency actions are periodically reviewed and, if appropriate, are revised to ensure that they continue to meet the needs for which they were originally designed, and that they remain cost-effective and cost-justified.

Regulatory Reform Task Force

EO 13771 and EO 13777, which were issued by President Trump at the beginning of this Administration, are instrumental in helping the Department achieve these goals.  Under EO 13771, unless prohibited by law, beginning with fiscal year 2017, and by the end of each fiscal year thereafter, for each new significant regulation we finalize, we must finalize at least two “deregulatory actions” as defined in guidance issued by the Office of Management and Budget.    In addition, unless prohibited by law, each agency must meet its regulatory cost allowance by sufficiently offsetting the incremental costs of new significant regulations with cost savings from deregulatory actions.  EO 13777 institutionalizes this process by directing each federal agency to establish a Regulatory Reform Task Force to evaluate existing regulations and make recommendations for their repeal, replacement, or modification.

It is important to note that, as OMB guidance makes clear, EO 12866 remains the primary governing EO regarding regulatory planning and review.  Accordingly, among other requirements, except where prohibited by law, agencies must continue to assess and consider both the benefits and costs of regulatory and deregulatory actions when making regulatory decisions and issue regulations only upon a reasoned determination that the benefits justify costs.

In response to EO 13771 and EO 13777, the Department formed a Regulatory Reform Task Force (RRTF), consisting of senior career and non-career DOT leaders, and quickly began work to further the President’s regulatory reform agenda. The Department’s RRTF consists of two components: a working group and a leadership council.  The working group coordinates with leadership in the Office of the Secretary and DOT operating administrations to conduct reviews and develop recommendations for deregulatory action.  The working group meets once a month with each of the Department’s operating administrations and presents recommendations to the leadership council.  The leadership council meets approximately every six weeks to act on the working group’s recommendations, and ultimately submits final RRTF recommendations to the Secretary. This system allows the RRTF to quickly and effectively implement the President’s regulatory reform agenda.

In carrying out its work, the RRTF is guided by three principles: (1) to reduce the regulatory burden on the public without compromising safety; (2) to streamline permitting; and (3) to enable innovation.

Reduction in Regulatory Burden

Through our ongoing review and revision of DOT rules and regulations under EO 13771 and EO 13777, we have been able to save the American public significant time and money over the last nine months without reducing the safety of our nation’s transportation system.  DOT rules issued in fiscal year 2016, under the previous Administration, imposed an estimated $3.2 billion in annualized costs on the public.  In contrast, rules issued under this Administration in fiscal year 2017 resulted in $21.9 million in annualized cost savings.  In addition, rules anticipated to be issued in 2018 are currently projected to yield substantially increased annualized cost savings.  In effect, we hope not only to continue to save the American taxpayers money, but to save them more money, faster—all while advancing the agency’s mission.

This reduction in regulatory costs was not only due to decisions to halt costly and inefficient rules from going forward, but also a result of a significant increase in deregulatory actions undertaken by the Department, as reflected in the Unified Agenda of Federal Regulatory and Deregulatory Actions (Unified Agenda).  The Unified Agenda, which the Office of Management and Budget (OMB) compiles twice annually, synthesizes the regulatory agenda of each Federal entity into one Government-wide plan.[1]  Approximately 12% of DOT rulemaking actions contained in the last Unified Agenda issued in the previous Administration (the Fall 2016 Unified Agenda) were anticipated to be deregulatory.  In this Administration, the number of deregulatory actions anticipated in the Spring 2017 Unified Agenda increased to about 18% of the total DOT rulemakings.  We anticipate additional deregulatory progress for Fiscal Year 2018 with the Fall 2017 Unified Agenda expected to further increase the number of deregulatory actions to approximately half of all DOT rulemakings.

Measures Used to Achieve Reduction in Regulatory Burden

This progress in advancing regulatory reform was accomplished through several measures, including: (1) reviewing regulatory actions planned during the last Administration; (2) identifying deregulatory actions and instituting new procedures to vet new rulemaking proposals; and (3) working with stakeholders. 

First, shortly after it was formed, the RRTF scrutinized more than 130 then-planned regulatory actions to determine whether the regulatory burden imposed by those actions could be reduced or eliminated without compromising DOT’s safety mission or DOT’s other statutory goals.  As a result of this review, seven rules were withdrawn and six rules were revised to reduce their burden.  An additional five rules are currently in the process of being withdrawn and an additional three rules are in the process of being revised. 

Second, the RRTF continues to review rulemakings and is taking an aggressive approach to reducing burdens and costs consistent with our safety mission.  As part of this approach, the RRTF has instituted new procedures under which it thoroughly vets any new rulemaking proposal (including both significant and non-significant rules) to ensure that no unnecessary burdens are created and all feasible non-regulatory alternatives have been considered.  The RRTF has also directed the Department’s operating administrations and offices with regulatory authority to identify existing regulations and policies that impose unnecessary regulatory burdens on stakeholders and that could be repealed, replaced, or modified without compromising safety.  This has resulted in the identification of at least 80 deregulatory actions, which are currently being evaluated by the Department.

Third, the Department has been proactive in seeking stakeholder input to assist in eliminating regulatory burdens.  The Department published a Federal Register notice on October 2 asking for public input to identify additional deregulatory actions.[2]  This notice also asks for public input to identify actions that the Department may take to alleviate or eliminate regulatory burdens or burdens on domestically produced energy resources, in accordance with EO 13783 (Promoting Energy Independence and Economic Growth).  The Department anticipates that the ideas provided by the public in response to this notice will be extremely helpful in implementing the Administration’s regulatory reform agenda.

Additionally, the Department recently received a letter from the U.S. Small Business Administration Office of Advocacy.  This letter, which is a result of roundtable meetings that the Office of Advocacy hosted with small businesses all over the country, identifies small business’ concerns with DOT regulations in the areas of aviation, commercial trucking, and railroads.  The RRTF is currently evaluating these concerns to determine how the Department can decrease the regulatory burden on small businesses consistent with our safety mission.

Permit Streamlining

One of the Department’s goals in reducing regulatory burden is to streamline the permitting process to further stretch taxpayer dollars by enabling faster, better, and more efficient infrastructure development.  Infrastructure affects every aspect of our nation’s transportation system from the airports that allow aircraft passengers to fly between our country’s cities to the roads, bridges, tunnels, and railroads that enable surface transportation. Just like it has been proactive in seeking stakeholder input in eliminating regulatory burdens, the Department has also sought stakeholder input to assist in its effort to streamline the permitting process. In June 2017, the Department published a request for public comment asking for input to help identify obstacles to infrastructure projects.[3]  In response, the Department received over 200 comments containing over 1,000 ideas.  The Department is currently reviewing these comments. 

In addition to its public outreach efforts, the Department is taking other steps to expedite project delivery.  For example, in late July, the Federal Transit Administration (FTA) proposed experimental procedures to encourage flexibility in public-private partnerships constructing transit projects.  Along the lines of the Federal Highway Administration’s (FHWA) pilot program to evaluate new public-private partnership approaches to project delivery – known as SEP-15 – FTA invoked its own statutory authority to permit recipients of FTA funding to seek relief from certain FTA requirements or practices.  The practice is designed not only to encourage public-private partnerships and expedite project delivery, but also to yield lessons learned that may prove beneficial throughout FTA’s program. 

We also issued updated guidance to implement a provision of the FAST Act that allows a DOT operating administration to apply the categorical exclusions (CEs) of another Departmental operating administration for certain multimodal projects.  A CE is a category of actions that does not usually have significant environmental impacts, and thus does not require an environmental assessment or impact statement under the National Environmental Policy Act.  Each operating administration establishes its own CEs, but sometimes one operating administration is implementing a multimodal project and another operating administration’s CE would be more appropriate.  Our updated guidance enhances DOT’s ability to take advantage of the FAST Act’s authority to apply CEs across the Department.

The Department also makes robust use of pre-existing structures, with a renewed emphasis on project delivery.  We continue to participate on the Federal Permitting Improvement Steering Council, and we continue to lead the Infrastructure Permitting Improvement Center (IPIC).  Through IPIC, DOT tracks priority projects that require the most complex environmental reviews, provides transparency through an online permitting dashboard, and assists project sponsors throughout the process.  We also collaborate with agency partners through the Transportation Rapid Response Team, a forum for agencies with approval authority over the same project to address permitting issues early during the process, and keep things moving.  Therefore, even as it charts new territory, the Administration continues to make robust use of existing processes as well.

Enabling Innovation

Another of the Department’s goals in reducing regulatory burden is to enable innovations that will transform transportation.  We believe that transportation of tomorrow will be safer, faster, and cheaper than today.  Every mode of transportation is affected by transformative technology. Whether we are talking about drones, automation generally, unmanned vehicles, commercial space, supersonic travel, or other emerging technologies, we are looking forward to new and promising frontiers that will change the way we move on the ground, in water, through the air, and into space.  This Administration is committed to fostering innovation by lifting barriers to entry and enabling innovative and exciting new uses of transportation technology.  The Department is also committed to enabling the safe testing and experimentation of new technologies to gather data necessary to further support rulemakings that will allow widespread use of transformative technologies.

The Department has a number of pending deregulatory or enabling regulatory actions that will further enable innovation in the transportation sector.  For example, the National Highway Traffic Safety Administration (NHTSA) is working on reducing regulatory barriers to technology innovation, including the development of autonomous vehicles.  Autonomous vehicles are expected to significantly increase safety by reducing the likelihood of human error when driving, which today accounts for the overwhelming majority of accidents on our nation’s roadways. 

Similarly, the Federal Aviation Administration (FAA) is working to enable, safely and efficiently, the integration of unmanned aircraft systems (UAS) into the National Airspace System.  UAS are expected to continue to increase safety by performing a range of activities including the provision of information that is difficult or even impossible for a human to obtain, as well as other dangerous tasks that today are performed by human beings.  In both cases, the Department hopes to be proactive in providing innovators the guidance they need to make long-term investments, while avoiding creating a regulatory thicket which becomes a barrier to new entrants into the transportation space.

Next Steps

Although we have made significant strides in implementing the Administration’s regulatory reform agenda, our work is ongoing.  The Department remains focused on alleviating unnecessary regulatory burdens to spur economic activity and foster innovation.  The Department is currently working to complete its portion of the Fall 2017 Unified Agenda, and as discussed earlier, the RRTF anticipates that the Unified Agenda will show additional deregulatory progress for Fiscal Year 2018. The RRTF also plans to monitor progress on existing deregulatory initiatives and to continue developing recommendations for future action.

In addition, the RRTF plans to consider potential burdens caused by agency guidance documents.  Guidance documents are issued by the Department’s operating administrations and offices with regulatory authority to provide advice to the public regarding how best to comply with a particular law or regulation.  While this advice is not legally binding, the Department’s operating administrations and regulatory offices often have significant expertise and extensive relationships in the areas that they regulate.  Consequently, even non-binding guidance that is promulgated by the Department may result in action by the regulated entities.

Conclusion

Thank you again for the opportunity to discuss with you the Department’s regulatory reform program.  As I know you appreciate, it would be inappropriate for me to discuss specific actions we might take concerning ongoing rulemakings, but I would be pleased to answer any questions you have about our overall regulatory program or the many positive steps we have taken to reduce regulatory burdens and costs of compliance consistent with our safety mission.