Sealift and Mobility Requirements In Support of The National Defense Strategy

STATEMENT OF 
MARK H. BUZBY
ADMINISTRATOR MARITIME ADMINISTRATION
U.S. DEPARTMENT OF TRANSPORTATION

BEFORE THE 
COMMITTEE ON ARMED SERVICES 
SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES 
AND SUBCOMMITTEE ON READINESS
U.S. HOUSE OF REPRESENTATIVES

HEARING ON SEALIFT AND MOBILITY REQUIREMENTS IN SUPPORT OF THE NATIONAL DEFENSE STRATEGY

March 11, 2020

Good afternoon, Chairman Courtney, Chairman Garamendi, Ranking Members Wittman and Lamborn, and members of the Subcommittees.  Thank you for the opportunity to discuss the Maritime Administration’s (MARAD) role in supporting the Department of Defense’s (DOD) strategic sealift capabilities.  

America’s strategic sealift includes both Government-owned ships and assured access to a fleet of privately-owned, commercially operated, U.S.-flag vessels and intermodal systems, and the civilian U.S.-citizen Merchant Mariners who crew them.  Together, these vessels, mariners, and networks share the mission of transporting equipment and supplies to deploy and sustain U.S. forces anytime and anywhere in support of national policy.  While U.S. strategic sealift continues to be an efficient and effective force for moving cargoes worldwide during peacetime, concerns remain about the ability of our Nation to adequately project and sustain power globally while operating in a contested environment against a major adversary. 

The U.S. Government-owned Ready Reserve Force (RRF) and Military Sealift Command (MSC) surge sealift fleets are aging and in need of recapitalization.  The U.S. shipbuilding industry has largely lost the capacity to build, repair, and replace the large, commercial-type ships needed for sealift at a pace adequate to meet U.S. wartime needs.  As of February 15, 2020, there are 87 large, privately-owned self-propelled U.S.-flag vessels operating exclusively in the U.S. international trades.  The Department of Transportation recently released a report to Congress outlining goals and objectives to support military sealift, U.S.-flag vessels operating in domestic and international trade, the U.S. maritime workforce, port infrastructure, and U.S. shipbuilding capacity.  In addition, MARAD is working in partnership with USTRANSCOM, the Navy, and MSC to begin recapitalizing the RRF.  MARAD alone cannot solve the maritime challenges facing the Nation, but we will continue to be a strong advocate to help inform the public and promote strengthening our maritime capabilities.

Ready Reserve Force

The RRF is a fleet of Government-owned vessels used to transport DOD cargo during major contingencies.  The 46 RRF vessels, along with 15 MSC vessels, provide sealift surge capability to deliver the initial movement of DOD equipment and supplies where needed during major contingencies. These vessels are then joined by commercial U.S.-flag vessels, which provide the bulk of follow-up sustainment sealift to support ongoing U.S. operations.  

Vessels in the RRF have an average age of more than 45 years, and the fleet has struggled to maintain an adequate readiness level. To address these readiness challenges, MARAD is working closely with the Navy to implement its surge sealift recapitalization strategy.  This strategy includes a combination of targeted service life extensions, acquiring and converting used vessels, and eventually building new vessels in U.S. shipyards. 

These efforts require key industrial capabilities.  A sustainable ship construction industrial base and sufficient marine repair facilities are necessary ingredients if we are to preserve our surge sealift capacity.  However, even as China, a formidable potential threat, has become the world’s leading shipbuilder, our domestic capacity to build and repair large commercial ships has dwindled.  For example, Avondale Shipyard, which only a few years back was actively producing naval and commercial ships and employing thousands of Louisianans, is now being operated as a shipping terminal.  Of the seven large shipyards involved in the last major effort to convert or construct large, commercial-type ships for sealift several decades ago, three are now closed, one no longer does large commercial work, and two do conversion work.  Only one shipyard, General Dynamics NASSCO, retains its expertise to build large commercial type ships.

As authorized in the Fiscal Year (FY) 2018 National Defense Authorization Act (NDAA), MARAD is taking steps toward the acquisition and modification of second-hand ships from the open market for service in the RRF.  MARAD released a Request for Proposal for Vessel Acquisition Manager (VAM) services on February 24, 2020.  The selected VAM will identify, modernize, and after purchase, may operate these vessels.  MARAD intends to select a VAM experienced in recapitalizing commercial fleets. The VAM will identify suitable Ro/Ro vessels that can be modified to meet DOD’s needs for the organic sealift fleet.  MARAD will continue to work closely with Navy, DOD, and USTRANSCOM to identify and procure vessels to meet sealift needs.

U.S.-Flag Commercial Fleet

The Government-owned strategic sealift fleet is augmented by U.S.-flag vessels that provide much of the sustainment sealift following surge operations.  The MSP is the heart of sustainment sealift, maintaining a fleet of 60 commercially-viable, militarily-useful vessels, active in international trade, but available on-call to meet DOD contingency requirements.  In return for a stipend, MSP operators provide DOD with assured access to not only ships, but also the multibillion-dollar global intermodal networks maintained by participating carriers.  MSP operators also provide employment on their vessels for 2,400 of the trained, skilled U.S. Merchant Mariners our country depends on to crew the RRF and MSC surge vessels if activated during a surge.  Additionally, the MSP program supports more than 5,000 shore side maritime industry jobs each year.

I appreciate the work of the members of the Committee to reauthorize the MSP through FY 2035 in the recently enacted FY 2020 NDAA.  The reauthorization of the Maritime Security Program (MSP) through FY 2035 ensures access to U.S.-flag commercial vessels to augment the U.S. Government fleet capability.  The MSP fleet is at the highest capacity in the program’s history. Recent MSP vessel replacements have added approximately 80,000 square feet of new roll-on/roll-off (RO/RO) capacity, and the President has requested full funding of the program for FY 2021.

This program will help keep vessels operating under the U.S.-flag.  In addition, MARAD is committed to ensuring compliance with cargo preference requirements and that cargo preference requirements are met.  We are expanding our outreach to Federal Government agencies and industry to cooperatively assist them in meeting these requirements and using U.S.-flag vessels to improve the Nation’s overall sealift readiness of ships and mariners.  These cargos help enable U.S.-flag vessel operators to remain operating under the U.S.-flag and employ U.S. citizen mariners.

MARAD is also committed to supporting our U.S.-flag fleet operating domestically.  U.S. coastwise trade laws, commonly referred to as the Jones Act, contribute to sealift capability and capacity and help sustain the U.S-flag domestic trading fleet.  Jones Act requirements support U.S. shipyards and repair facilities, and sustain supply chains that produce and repair American-built ships (including Navy and Coast Guard vessels).  In addition, Jones Act vessels employ U.S. citizen mariners able to crew our surge fleets and ensure that vessels navigating within and between U.S. coastal ports and inland waterways operate with U.S. documentation and a majority citizen-crew, rather than under a foreign flag with foreign crew.  Several U.S. flag self-propelled ocean-going vessels are also operating in Jones Act trade.

U.S. Mariner Workforce and Training

Access to a pool of qualified mariners from a robust, commercial maritime fleet is essential to maintaining enough sealift readiness capacity for contingencies. Due to the number of ships in the U.S.-flag, oceangoing fleet, I am concerned about our ability to quickly assemble an adequate number of qualified mariners to operate large ships (unlimited horsepower and unlimited tonnage) needed for surge and sustainment sealift operations during an extended mobilization.  MARAD is 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 to meet the Nation’s commercial and sealift requirements.  

MARAD continues to support mariner education and training through the U.S. Merchant Marine Academy (USMMA), and facilitates mariner education through the support we provide to the six state maritime academies, which produce highly skilled licensed officers for the U.S. Merchant Marine.  As this committee is aware, aging vessels at the state maritime academies are used to train cadets who will become the fully-qualified mariners needed to crew Government and U.S.-flag commercial ships.  Congress has recognized the need to replace these ships and has appropriated funding for National Security Multi-Mission Vessels (NSMV), $300 million in each of FYs 2018 through 2020.  Additionally, the President’s FY 2021 Budget requests an additional $300 million to continue to address critical recapitalization of the training school ships.  Since first receiving funding in March 2018, MARAD has implemented the approved acquisition strategy, selected a Vessel Construction Manager, and is preparing to finalize the selection of a shipyard to construct the new ships.  The first NSMV is expected to be delivered to DOT/MARAD in FY 2023.

Conclusion

Thank you for the opportunity to address this Committee on the state of American sealift.  MARAD stands ready to support DOD sealift requirements against any challenge.  However, we continue to work to mitigate any readiness and capacity risks that could limit our ability to move and sustain the force at an optimal level in a crisis.  This risk mitigation requires careful planning and action now.  MARAD remains committed to working with our Navy and USTRANSCOM partners to provide the sealift capabilities needed to meet our national security requirements.

Thank you for your support of the U.S. Merchant Marine. I look forward to your questions.

Transportation, Housing, and Urban Development and Related Agencies

STATEMENT OF
THE HONORABLE ELAINE L. CHAO
SECRETARY OF TRANSPORTATION

BEFORE THE
APPROPRIATIONS SUBCOMMITTEE ON
TRANSPORTATION, HOUSING, AND URBAN DEVELOPMENT AND RELATED AGENCIES
UNITED STATES SENATE

March 4, 2020

Introduction

Chairman Collins, Ranking Member Reed, and members of the Subcommittee, thank you for the opportunity to discuss the President’s Fiscal Year (FY) 2021 Budget request for the Department of Transportation.  The President is requesting a total of $89 billion to support transportation programs -- an overall 2% increase above funds provided in the FY 2020 Appropriations Act.  This funding will enable the Department to continue our important work in providing Americans with safe and dependable transportation, and will support our progress in improving transportation infrastructure throughout the Nation.

The Department of Transportation’s budget includes a hybrid of different kinds of Federal funds.  Typically, about 75 percent of the Department’s Budget comes from mandatory authorizations primarily derived from the Highway and Aviation Trust Funds, while the remaining 25 percent is funded through discretionary appropriations, largely from the General Funds.  Recently, I have seen comparisons of the Transportation budget that focus solely on the smaller discretionary portion.  By selecting only the discretionary components the budget shows a reduction from FY 2020 to FY 2021.  But this is only part of the story.    When one looks at the whole picture, including Trust Fund programs, the President’s FY 2021 Budget request recommends the highest funding for transportation investment in our Nation’s history.

A New Vision for Surface Transportation

In a few short months, our current surface transportation authorization – the “Fixing America’s Surface Transportation” or FAST Act – will expire.  In anticipation of this deadline, I am especially pleased to share that the President’s budget includes a total of $1 trillion to rebuild, restore and renew our Nation’s infrastructure.  This request includes two parts.  First, the budget envisions a historic 10-year authorization for the Department of Transportation’s surface transportation programs that will provide $810 billion of predictable funding. The President’s request also includes an additional $190 billion for addressing other infrastructure improvements including bridge and freight bottlenecks.

Our plan builds on the foundation of the FAST Act and generally relies on the existing program structure for highways and highway safety programs, transit, and rail.  After the first year, funding increases are built into the 10-year framework at about 4% each year.  No major changes are envisioned to the current formula distributions for States and other recipients. 

Our proposal will lay out an authorization that provides more flexibility for States and other stakeholders.  It includes program and policy changes that will enable us to build modern infrastructure more quickly while ensuring that both rural and urban areas receive the assistance they need.  We are also recommending significant investments for rebuilding and repairing highways and bridges by using flexible grants and modern innovative finance tools that will help us get projects moving quickly.  The proposal also includes legislative revisions that will reduce the regulatory and administrative burdens that often force communities to wait years for the infrastructure improvements they desperately need.

The Administration’s detailed legislative language is currently under review within the Administration.  Once that process is complete and legislation is submitted, the Department will be free to discuss its contents in full detail.  In the meantime, the President’s budget provides a blueprint summary of the $810 billion reauthorization proposal.

Investing in Competitive Infrastructure Programs

The President’s Budget demonstrates the Administration’s strong support for States and other entities charged with improving or replacing our aging transportation infrastructure.  Toward this end, the President’s Budget for DOT requests significant resources for several competitive grant programs, including $1 billion for the Infrastructure for Rebuilding America (or INFRA) grant program and an additional $1 billion for the Better Utilizing Investments to Leverage Development (or BUILD) grant program.  These programs provide Federal assistance for critical projects that will spur progress in both rural and urban communities across all modes of surface transportation infrastructure:  highways, transit, rail, and ports.

With respect to transit, the President’s Budget includes this Administration’s largest request ever for the Federal Transit Administration’s Capital Investment Grant program:  $1.9 billion.  This request funds the current portfolio of transit projects that have signed Full Funding Grant Agreements.  Another $925 million is reserved for new projects that may become eligible for Full Funding Grant Agreements during FY 2021.

Targeted Investments for the Federal Aviation Administration

The President’s Budget recommends $17.5 billion for FAA and includes nearly $1 billion across its programs to support the on-going work of NextGen.  The request is consistent with the FY 2020 Appropriations levels but does not propose repeating the new discretionary appropriation for Grants-in-Aid to Airports.  Instead, the President’s Budget includes the fully authorized level of $3.4 billion to support airport capital improvements.

The Budget dedicates $1.5 billion for Aviation Safety -- including an increase of $37 million to fund targeted investments to improve FAA’s ability to respond to industry innovation, analyze safety trends, and improve accountability.  Within this amount, funds will be used to establish a centralized Organization Designation Authorization office that will coordinate FAA’s work with industry manufacturers to certify aircraft safety.  This funding will also help to implement recommendations from the ongoing Boeing 737 MAX reviews.  

FAA continues to be at the forefront in planning for the integration of new and emerging technologies into the National Airspace System (NAS).  Toward this end, the President’s Budget requests $145 million to further support the integration of unmanned aircraft systems (or drones) into the NAS; and, another $44 million to support Commercial Space activities.  These programs demonstrate FAA’s commitment to encouraging the use of new innovative technologies while at the same time ensuring the overall safety of the NAS.

Continuing the Recapitalization of the School Ship Fleet

Finally, the President’s budget once again includes $300 million for the National Security Multi-Mission Vessel replacement program. This program continues the Administration’s efforts to replace the aging School Ship Fleet that provides hands-on-training for Midshipmen attending State Maritime Academies.  These vessels serve a critical role in providing necessary at-sea training for those entering the maritime industry that cannot be duplicated in standard classroom settings.

These are some of the key programs included in the President’s FY 2021 Budget request.  Additional information is included in the Department’s annual Budget Highlights document provided for your reference.  Thank you again for the opportunity to appear before you today.  I will be happy to answer your questions.

*****

From SARS to Coronavirus: Examining the Role of Global Aviation in Containing the Spread of Infectious Diseases

STATEMENT OF THE HONORABLE JOEL SZABAT,
ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS,
PERFORMING THE DUTIES OF THE UNDERSECRETARY OF TRANSPORTATION FOR POLICY

BEFORE THE 
UNITED STATES SENATE 
SUBCOMMITTEE ON AVIATION AND SPACE 
FROM SARS TO CORONAVIRUS: EXAMINING THE ROLE OF
GLOBAL AVIATION IN CONTAINING THE SPREAD OF INFECTIOUS DISEASE

Good afternoon Chairman Cruz, Ranking Member Sinema, and distinguished Members of the Subcommittee. Thank you for inviting me to testify on behalf of the U.S. Department of Transportation (DOT) and Secretary Elaine L. Chao on our efforts to minimize the risk of spread of COVID-19 in the United States. We continue to play an active role in President Trump’s response to the outbreak and the whole of government effort to ensure the welfare of the American people.  We are taking necessary actions and preparations to ensure the continued safety and efficiency of our Nation’s transportation system and minimize disruption to trade and commerce.

On February 26th, President Trump appointed Vice President Pence to lead the U.S. Government’s effort to combat the virus. Secretary Azar, who chairs the White House Task Force, remains focused on coordinating the USG response to the outbreak. I represent the Department of Transportation on the Task Force.  The Task Force, comprised of subject matter experts from the White House and several U.S. Government agencies, is charged with leading the Administration’s efforts to contain the spread of the virus, while ensuring that the American people have the most accurate and up-to-date health and travel information.

The USG’s health professionals have the lead in determining the response to the COVID-19 outbreak. DOT, in its supporting role, has and will continue to coordinate daily with aviation stakeholders, foreign counterparts and other federal agencies to manage the risk in the United States. In this capacity, DOT continues to ensure: 

1. An active airbridge remains in place for the safe return of Americans from affected areas;  
2. Airlines are funneling passenger flights to one of the eleven designated U.S. airports equipped to health-screen Americans returning from affected areas;
3. Continued air and sea cargo traffic between the US and China;
4. Health protocols are established to protect the crews of aircraft continuing to fly between the US and foreign locations; and,
5. Dissemination of health messages about the virus, for airlines to use to inform their passengers.

The U.S. government’s travel restrictions and advisories have been a remarkably effective ‘first layer’ of containment. These travel requirements delayed the arrival of the virus to the United States, giving the nation precious time to prepare further measures, and plan for mitigation.

This achievement took the cooperation of nearly 200 commercial airlines, a like number of overseas airports, and the Civil Aviation Authority of China. The Department, including the Federal Aviation Administration, is also working closely with our sister federal agencies under the Task Force aegis, especially the Centers for Disease Control and Prevention (CDC), Customs & Border Protection, Transportation Security Administration, and the U.S. Citizenship and Immigration Services. Their expertise and authorities, as well as those of the Departments of State, Homeland Security and Health & Human Services, were all necessary to accomplish this success.   

On January 31, 2020, the Secretary of the Department of Health and Human Services (HHS) declared that the virus presented a Public Health Emergency in the United States.  That same day, the President exercised his authority under the Immigration and Nationality Act to issue a Proclamation suspending the entry into the United States of certain foreign nationals, to protect persons within the United States from the threat of this communicable disease.  While this Proclamation is in effect, most foreign nationals who have been in China within the last 14 days prior to their arrival are barred from entering the U.S., with various exceptions, including lawful permanent residents and most immediate family members of U.S. citizens and lawful permanent residents.  As the Coronavirus expanded beyond the borders of China, we gained concurrence with the governments of Italy and South Korea to institute aggressive containment actions, which include exit screenings.

Any U.S. citizen returning to the U.S. who has been in China’s Hubei province in the previous 14 days is subject to up to 14 days of mandatory quarantine.  Any returning U.S. citizen who has been in the rest of mainland China within the previous 14 days undergoes proactive entry health screening at a designated port of entry, as well as up to 14 days of self-quarantine. To focus the expertise of the medical professionals conducting screening, the Secretary of the Department of Homeland Security (DHS) has directed all flights inbound to the U.S. carrying persons who have recently traveled from, or were otherwise present within, China to arrive at one of eleven U.S. airports.   Significant consideration, coordination, and analysis occurred to select the appropriate airports.

The U.S. Government has taken steps to ensure that the nearly 200,000 Americans who were in, or had recently left China, could return to the U.S. through an airbridge home. The number of passengers traveling from China to the United States has fallen from roughly 15,000 each day before the virus outbreak to fewer than 1,000 each day now.

The complexity of passenger flows across the globe include not just nonstop flights between the U.S. and China, but also travelers connecting through foreign countries. The Department was part of the Interagency coordination with foreign airports and airlines to establish a robust initial screening.

The welfare of passengers returning home is among the U.S. Government’s highest priorities. HHS and the CDC developed a script to provide information on U.S. health screening at designated ports of entry, which DOT coordinated with governments and airlines for flight crews to read to passengers ahead of arrival.  Today, all four carriers still providing flights to the U.S. from China are using this script.  Further, DOT helped our Government partners enact workable health protocols for pilots and crews that continue to fly from China to the U.S. These protocols differ for China-based and U.S.-based crews, and allow continued all-cargo operations.   U.S. cargo carriers that were offering scheduled and charter service between China and the United States before the outbreak continue to serve China.

Prior to and following the first Presidential Proclamation, DOT and interagency partners proactively communicated with air carriers and others in the aviation industry.  DOT hosted multiple stakeholder calls with over 475 invited industry participants, representing 44 different U.S. and foreign air carriers, 26 domestic airports, and many trade associations, unions, and other valued partners.  The Administration also communicated with foreign governments to maintain awareness of changes in their travel restrictions and screening and quarantine policies that could impact Americans traveling to or through those countries.  Open communication is key to implementing practical solutions for continued operations.

As the President said on February 28th, these containment measures have been remarkably effective. As we plan for community transmission in the United States, DOT will be coordinating similar efforts with transit stakeholders, as part of the whole-of-government plan. The Task Force and U.S. Government Departments and Agencies continue to proactively plan for mitigation strategies by working with the State and local public health agencies that would be on the front line of “mitigation” efforts.

Successful containment and mitigation of the virus to keep the American people safe will depend on the efforts of all levels of government, the public health system, the transportation industry, and our communities.  The ability to sustain transportation services, move emergency relief personnel and commodities, and mitigate adverse economic impacts requires effective transportation policy decisions.  DOT is postured to respond effectively, and we continue to work closely closely with government and industry to support the USG’s response to the virus.

Thank you and I look forward to your questions.
 

Transportation, Housing, and Urban Development and Related Agencies

STATEMENT OF
THE HONORABLE ELAINE L. CHAO
SECRETARY OF TRANSPORTATION

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

February 27, 2020

Introduction

Chairman Price, Ranking Member Diaz-Balart, and members of the Subcommittee, thank you for the opportunity to discuss the President’s Fiscal Year (FY) 2021 Budget request for the Department of Transportation.  The President is requesting a total of $89 billion to support transportation programs -- an overall 2% increase above funds provided in the FY 2020 Appropriations Act.  This funding will enable the Department to continue our important work in providing Americans with safe and dependable transportation, and will support our progress in improving transportation infrastructure throughout the Nation.

The Department of Transportation’s budget includes a hybrid of different kinds of Federal funds.  Typically, about 75 percent of the Department’s Budget comes from mandatory authorizations primarily derived from the Highway and Aviation Trust Funds, while the remaining 25 percent is funded through discretionary appropriations, largely from the General Funds.  Recently, I have seen comparisons of the Transportation budget that focus solely on the smaller discretionary portion.  By selecting only the discretionary components the budget shows a reduction from FY 2020 to FY 2021.  But this is only part of the story.    When one looks at the whole picture, including Trust Fund programs, the President’s FY 2021 Budget request recommends the highest funding for transportation investment in our Nation’s history.

A New Vision for Surface Transportation

In a few short months, our current surface transportation authorization – the “Fixing America’s Surface Transportation” or FAST Act – will expire.  In anticipation of this deadline, I am especially pleased to share that the President’s budget includes the Administration’s plan for the next surface transportation authorization.  This proposal envisions a historic 10-year authorization that will provide $810 billion of predictable funding.  Our plan builds on the foundation of the FAST Act and generally relies on the existing program structure for highways and highway safety programs, transit, and rail.  After the first year, funding increases are built into the 10-year framework at about 4% each year.  No major changes are envisioned to the current formula distributions for States and other recipients. 

Our proposal will lay out an authorization that provides more flexibility for States and other stakeholders.  It includes program and policy changes that will enable us to build modern infrastructure more quickly while ensuring that both rural and urban areas receive the assistance they need.  We are also recommending significant investments for rebuilding and repairing highways and bridges by using flexible grants and modern innovative finance tools that will help us get projects moving quickly.  The proposal also includes legislative revisions that will reduce the regulatory and administrative burdens that often force communities to wait years for the infrastructure improvements they desperately need.

The Administration’s detailed legislative language is currently under review within the Administration.  Once that process is complete and legislation is submitted, the Department will be free to discuss its contents in full detail.  In the meantime, the President’s budget provides a blueprint summary of the $810 billion reauthorization proposal.

Investing in Competitive Infrastructure Programs

The President’s Budget demonstrates the Administration’s strong support for States and other entities charged with improving or replacing our aging transportation infrastructure.  Toward this end, the President’s Budget for DOT requests significant resources for several competitive grant programs, including $1 billion for the Infrastructure for Rebuilding America (or INFRA) grant program and an additional $1 billion for the Better Utilizing Investments to Leverage Development (or BUILD) grant program.  These programs provide Federal assistance for critical projects that will spur progress in both rural and urban communities across all modes of surface transportation infrastructure:  highways, transit, rail, and ports.

With respect to transit, the President’s Budget includes this Administration’s largest request ever for the Federal Transit Administration’s Capital Investment Grant program:  $1.9 billion.  This request funds the current portfolio of transit projects that have signed Full Funding Grant Agreements.  Another $925 million is reserved for new projects that may become eligible for Full Funding Grant Agreements during FY 2021.

Targeted Investments for the Federal Aviation Administration

The President’s Budget recommends $17.5 billion for FAA and includes nearly $1 billion across its programs to support the on-going work of NextGen.  The request is consistent with the FY 2020 Appropriations levels but does not propose repeating the new discretionary appropriation for Grants-in-Aid to Airports.  Instead, the President’s Budget includes the fully authorized level of $3.4 billion to support airport capital improvements.

The Budget dedicates $1.5 billion for Aviation Safety -- including an increase of $37 million to fund targeted investments to improve FAA’s ability to respond to industry innovation, analyze safety trends, and improve accountability.  Within this amount, funds will be used to establish a centralized Organization Designation Authorization office that will coordinate FAA’s work with industry manufacturers to certify aircraft safety.  This funding will also help to implement recommendations from the ongoing Boeing 737 MAX reviews.  

FAA continues to be at the forefront in planning for the integration of new and emerging technologies into the National Airspace System (NAS).  Toward this end, the President’s Budget requests $145 million to further support the integration of unmanned aircraft systems (or drones) into the NAS; and, another $44 million to support Commercial Space activities.  These programs demonstrate FAA’s commitment to encouraging the use of new innovative technologies while at the same time ensuring the overall safety of the NAS.

Continuing the Recapitalization of the School Ship Fleet

Finally, the President’s budget once again includes $300 million for the National Security Multi-Mission Vessel replacement program.  This program continues the Administration’s efforts to replace the aging School Ship Fleet that provides hands-on-training for Midshipmen attending State Maritime Academies.  These vessels serve a critical role in providing necessary at-sea training for those entering the maritime industry that cannot be duplicated in standard classroom settings.

These are some of the key programs included in the President’s FY 2021 Budget request.  Additional information is included in the Department’s annual Budget Highlights document provided for your reference.  Thank you again for the opportunity to appear before you today.  I will be happy to answer your questions.

*****

Tracking Toward Zero: Improving Grade Crossing Safety and Addressing Community Concerns

Statement of Karl Alexy, Associate Administrator for Railroad Safety, Chief Safety Officer
Federal Railroad Administration
U.S. Department of Transportation

Before the
House Transportation and Infrastructure Committee
Subcommittee on Railroads Pipelines, and Hazardous Materials

Tracking Toward Zero: Improving Grade Crossing Safety and Addressing Community Concerns

February 5, 2020

Chairman Lipinski, Ranking Member Crawford, and Members of the Committee,

Thank you for the opportunity to speak with you today regarding highway-rail grade crossing safety.  The mission of FRA is to enable the safe, reliable, and efficient movement of people and goods for a strong America, now and in the future.  As such, safety is FRA’s top priority.   

Railroads are a vital transportation link in our Nation’s economy – transporting freight and passengers in a manner not achievable by other modes of transportation. 

The safety of rail operations over highway-rail grade crossings and trespassing on railroad rights-of-way are two critical issues that FRA recognizes continue to impact and concern communities.  As FRA Administrator Ronald Batory has previously discussed with this Committee, trespassing on railroad property is the leading cause of all rail-related deaths in the United States.  Grade crossing incidents are the second.  Together these types of accidents account for 97 percent of all fatalities along the nation’s railroad rights-of-way.  Over the past thirty years grade crossing fatalities have decreased by over sixty percent, but it is not enough. FRA believes these accidents, and resulting injuries and fatalities are preventable.  Thus, improving grade crossing safety and preventing trespassing on railroad rights-of-way are top priorities for FRA. 

Grade crossing safety and trespassing prevention are separate and distinct issues, yet they share two common factors.  First, both are singularly a function of human behavior.  A motorist may decide to disregard active grade crossing warning devices at a highway-rail grade crossing and maneuver around lowered gates or past flashing lights and enter a crossing, or a pedestrian seeking a shortcut to a destination on the opposite side of a set of railroad tracks may cut across those tracks.  In other cases, individuals are not sufficiently careful or may make poor judgements, or motorists may experience mechanical breakdowns or encounter physical obstructions when attempting to cross railroad tracks.  Second, of the stakeholders - railroads, communities, individuals, and regulators -- none can solve these issues on its own.  We need all stakeholders to take action to prioritize, prevent, and address these issues.  Railroads need to be cognizant of how their operations affect the communities through which they operate.  Local law enforcement officials need to prioritize, to the extent possible, enforcement of vehicle traffic signals at highway-rail grade crossings and trespassing laws, and strict prosecution of resulting citations.  Individual community members need to be aware of the consequences of not complying with grade crossing warning signals or of trespassing on railroad rights-of-way.

As Administrator Batory shared in his June 2019 testimony to this Committee, FRA is focused on leading, promoting, and strengthening efforts among all stakeholders to increase awareness of grade crossing safety issues, the dangers of trespassing on railroad rights-of-way, and existing and potential trespassing prevention strategies.  With our current focus, we are well underway with implementing FRA’s National Strategy to Prevent Trespassing on Railroad Property which FRA developed in 2018.  More recently, in November 2019, FRA developed and began implementation of a Highway-Rail Grade Crossing Safety Business Plan.  These efforts are complementary and focus generally on five strategic areas: 

1. Enhancing our collaborations with and outreach to all affected stakeholders;
2. Leveraging data to apply our resources most effectively;
3. Oversight and enforcement of the rail industry, and engagement of state and local governments, and law enforcement, particularly in trespass “hot-spots” or near accident-prone areas;
4. Supporting research designed to improve rail safety; and
5. Existing funding opportunities to support implementation of proven strategies and testing of new approaches and technologies.

FRA has worked to enhance the agency’s collaborations with and outreach to stakeholders on both grade crossing safety and trespass prevention issues through a series of listening sessions, summits, symposiums, targeted social media campaigns, and community site visits.  FRA works with railroads, state and local governments, law enforcement officials, signal equipment manufacturers and technology companies, trade and advocacy groups, as well as DOT experts outside of FRA, to identify the most effective methods of improving grade crossing safety and preventing trespassing on railroad property.

FRA’s safety program has historically been and continues to be data-driven.  Highway-rail grade crossing safety and trespassing prevention are no exceptions, but as I noted earlier, both issues are highly dependent not only on FRA data and actions, but on the involvement of all affected stakeholders.  Accordingly, FRA has amplified its efforts to improve the quality of its data and to ensure data related to grade crossing safety and trespassing incidents is available and accessible to all stakeholders.  For example, FRA has created and maintains numerous data visualization tools (e.g., dashboards, maps) which enable the agency and our stakeholders to better monitor and analyze key safety metrics over time.  Meanwhile, FRA is using analytical tools to gain a better understanding of factors affecting grade crossing safety and trespassing issues (e.g., from system-level overviews to localized detail).  FRA is also seeking new and unconventional data sources and voluntary methods of sharing data among stakeholders to identify leading indicators of both grade crossing and trespassing risk factors. 

Utilizing available data, FRA is identifying accident-prone areas and trespass “hot-spots” and engaging railroads operating in those areas, as well as the relevant state and local government and law enforcement officials, to seek potential local solutions to the risks.

The Grade Crossing Safety and Trespass Prevention research program conducts research to improve safety at highway-rail grade crossings and along the railroad rights-of-way.  The program develops, tests, and evaluates technologies and engineering solutions, and collects and analyzes data to measure the effectiveness in improving grade crossing safety.  FRA is currently supporting research in several technologies that have the potential to reduce grade crossing accidents, including GIS mapping, use of drones, in-vehicle auditory alerts, intelligent crossing assessment, and first responder blocked crossing notifications.  The research outcomes, reports, and best practices will continue to be published on the FRA website and presented at industry related conferences and workshops.  FRA currently uses an online research repository to store and maintain research reports and will introduce a search engine to facilitate access to these reports. 

To complement FRA’s safety oversight and research initiatives, Secretary Elaine L. Chao and Administrator Batory have prioritized investment in grade crossing improvements through the Department’s various grant programs.  Under this Administration, in addition to grade crossing formula funding administered by the Federal Highway Administration’s Section 130 program, over 500 individual grade crossings have been made safer through FRA grant selections, most of this through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program.  The Department’s Better Utilizing Investments to Leverage Development (BUILD) and Infrastructure for Rebuilding America (INFRA) grant programs have also provided significant investment in grade crossing safety nationwide.

Regarding trespassing, FRA issued two Notices of Funding Opportunities (NOFO) for law enforcement agencies to address railroad trespassing enforcement.  In response to the first NOFO, FRA awarded almost $200,000 to four law enforcement agencies.  Preliminary findings demonstrate a significant reduction in trespassing incidents in these four local jurisdictions. Applications in response to the second NOFO are currently under review.  Looking forward, FRA expects to make its fiscal year 2020 grant funding available to prospective applicants in the near future.  We encourage your states and communities to apply for these forthcoming funding opportunities so they can work with FRA and continue to make grade crossings safer and reduce trespasser incidents.

Trespassing Prevention

Trespassing on railroad property can be defined as accessing private railroad property anywhere other than at a designated pedestrian or roadway crossing.  Trespassing on private railroad property is illegal and poses a grave threat to the individual trespasser’s safety and to the safety of railroad employees.  Although this is a matter of common sense, each year, more than 500 people are killed and nearly as many injured, while trespassing on railroad property.

Implementation of FRA’s National Trespassing Prevention Strategy is well underway.  To date, FRA has consistently achieved the milestones set forth in the Strategy and the agency will provide a specific update on its progress implementing the Strategy later this year.. To highlight some of the successes of the Strategy to date, I note:

• FRA field teams have conducted 171 trespassing site visits and outreach presentations since October of 2018. 
• FRA developed a Trespass and Suicide Dashboard that allows users to visually interact with trespass and suicide data collected by FRA.  The Dashboard is designed to provide key information to enable analysis of the data, including where trespassing incidents have occurred both nationally and locally, what railroads are involved in the trespassing incidents, and key factual details surrounding the trespassing incidents (e.g., trespasser age, day of week, time of day, physical act before casualty, and the event that caused the casualty).  Although FRA’s field teams use this information to evaluate local conditions and track overall trends, the dashboard is available online for all stakeholders to use.
• Regional FRA teams are working with individual communities identified as “hot-spots” for trespassing incidents to understand the root causes of the incidents and assist in the development of local solutions.
• FRA issued an approximately $160,000 Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant to the Florida Department of Transportation to pilot drone technology, closed circuit television with remote monitoring, and a geographic information system spatial analysis to aid and leverage local law enforcement trespassing enforcement efforts.
• FRA has worked with the leaders of the 10-counties in the United States with the most trespassing incidents to participate in Railroad Trespassing and Grade Crossing Technology Summits throughout the country in 2020. 

Grade Crossing

Similar to trespassing, human behavior plays a primary role in grade crossing accidents.  For example, a driver may choose to maneuver around lowered gates at an active crossing, or a driver may fail to look both ways to ensure the track is clear before attempting to cross a passive crossing (a passive crossing is a crossing with no train-activated warning devices). 

Throughout the past year, FRA held a series of six grade crossing technology listening sessions.  Those listening sessions involved a diverse range of stakeholders, including rail industry members, state and local governments (including law enforcement officials), trade and advocacy groups, as well as signal equipment and automobile manufacturers and technology companies, and culminated in a Grade Crossing Symposium in November, 2019.  The Symposium provided a forum for all stakeholders to share what they learned during the listening sessions and collaborate on issues and experiences in implementing both low-tech and high-tech grade crossing solutions and best practices that have been successful on a local level to reduce grade crossing accidents as well as strategies for overcoming barrier to implementation and funding sources.  FRA plans to continue this collaboration and outreach with stakeholders by holding additional grade crossing summits during 2020 to engage locally with stakeholders.

As I noted earlier, in November 2019, FRA issued its Highway-Rail Grade Crossing Business Plan as a complement to FRA’s Trespassing Prevention Strategy.  This Business Plan describes the actions FRA will take over the next three years to support the implementation of technology to improve grade crossing safety.  The Business Plan outlines FRA’s technological approach to grade crossing safety and emphasizes FRA’s continued desire to FRA to work with all stakeholders to discover new and innovative ways to use technology to mitigate and eliminate grade crossing collisions.  FRA recognizes the costs to communities to implement technologies at grade crossings, and accordingly, one focus of the Business Plan is identifying available funding opportunities through existing programs at FRA and other DOT modes (e.g., the Federal Highway Administration). 

In addition to developing the Business Plan, since Administrator Batory last testified before this Committee in June 2019, FRA has taken several additional actions to address and engage stakeholders in grade crossing safety issues, including actions to ensure the safety of railroad operations in quiet zones.  Examples of these actions include:

• In November 2019, FRA published a notice of proposed rulemaking (NPRM) responding to the FAST Act’s mandate to require 40 States and the District of Columbia to develop and implement highway-rail grade crossing action plans.  Consistent with the statutory mandate, the NPRM also proposed to require the ten States previously required to develop highway-rail grade crossing actions plans to update their plans and submit reports to FRA describing the actions they have taken to implement them.  FRA is currently reviewing comments received in response to the NPRM and anticipates publication of a Final Rule in the summer.
• Observing an increase in accidents at grade crossings within quiet zones, in December 2019, FRA wrote to all public authorities with quiet zones in which multiple accidents occurred in 2018 to remind those entities of the importance of ensuring their quiet zones comply with the conditions of approval.  To ensure future compliance, FRA implemented a standard operating procedure to inspect all established quiet zones (currently 907) on a three-year or less interval and to inspect newly established quiet zones within the first 60 days. 

Additionally, the Risk Reduction and System Safety Program rules will require railroads to analyze how trespasser prevention technology and highway-rail grade crossing technology may help mitigate identified risks.  Once these rules are published and implemented, FRA anticipates that the required analysis will provide railroads a framework for utilizing technology to combat risks associated with grade crossings and trespassers.

In addition to grade crossing safety and trespassing prevention, the FRA is engaged with the railroads and state and local officials to address the sometimes impactful effects of railroad operations on communities. 

In May, noting an increase in the number of blocked crossing complaints FRA was receiving, Administrator Batory wrote to the Chief Executive Officers and senior leadership of the Class I railroads and major railroad holding companies regarding the impacts to quality of life associated with blocked crossings.  Administrator Batory specifically requested that each railroad take action to minimize the occurrence of blocked crossings and redouble their efforts to work with states and local communities to advance the safety and efficiency of both railroad and highway transportation. In December, I wrote to all 736 railroads operating in the United States, reiterating Administrator Batory’s requests.

On December 20, 2019 FRA launched a new online portal to collect data regarding the scope of blocked crossings issues across the country.  The portal allows the public and public safety officials to submit reports of blocked crossings and specifically requests information on the location of the blocked crossing, and the time, duration, and impacts of the blocked crossing.  This information will provide FRA with more standardized data on instances of blocked crossings throughout the United States and FRA will analyze the data and publicly share it with all affected stakeholders to help inform the development of local solutions to reduce and prevent incidents of trains blocking crossings. 

Conclusion

FRA will continue to effectively implement its National Strategy to Prevent Trespassing on Railroad Property and carry out its Highway-Rail Grade Crossing Safety Business Plan.  The agency remains committed to continuing to lead, promote, and strengthen efforts among all stakeholders to increase awareness of grade crossing safety issues, the potential consequences of trespassing on railroad rights-of-way, and existing and potential trespassing prevention strategies.

Looking Forward: The Future of America’s Aviation Maintenance and Manufacturing Workforce

The FAA’s first and most important responsibility is to maintain the safety of the NAS. This means that our efforts are focused in part on ensuring that our own workforce is up to the challenge of setting and enforcing the standards for the broader aviation workforce. As directed by the 2018 Act, the FAA recently reviewed and revised our safety workforce training strategy to align with an effective risk-based approach to safety oversight. This effort will help to foster an inspector and engineer FAA workforce that has the skills and training necessary to provide effective safety oversight.

We recognize the importance that workforce development has for the overall safety of the NAS. To that end, we are committed to partnering with industry, the academic community, and government agencies to remove unnecessary barriers for entry into aviation careers, as well as to enhance education pathways and build the pipeline of qualified aviation professionals. We are grateful for the support of the Committee in highlighting these workforce issues and the need for collaborative solutions from all stakeholders.

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

Tracking Toward Zero: Improving Grade Crossing Safety and Addressing Community Concerns

Statement of Karl Alexy, Associate Administrator for Railroad Safety, Chief Safety Officer Federal Railroad Administration U.S. Department of Transportation

 Before the

Overview of the Build America Bureau and The U.S. Department of Transportation Rural Transportation Initiatives

JOINT STATEMENT OF JOEL SZABAT, ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS,  
PERFORMING THE DUTIES OF UNDER SECRETARY FOR POLICY, DEPARTMENT OF TRANSPORTATION AND MORTEZA FARAJIAN, Ph.D, EXECUTIVE DIRECTOR, BUILD AMERICA BUREAU, DEPARTMENT OF TRANSPORATION

BEFORE THE UNITED STATES SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION SUBCOMMITTEE ON TRANSPORTATION AND SAFETY
OVERVIEW OF THE BUILD AMERICA BUREAU AND THE U.S. DEPARTMENT OF TRANSPORTATION RURAL TRANSPORTATION INITIATIVES

JANUARY 28, 2020

Thank you, Chairman Fischer, Ranking Member Duckworth, and Members of the Subcommittee. We appreciate the opportunity to share with you the steps the Trump Administration and Secretary of Transportation Elaine L. Chao have taken to facilitate better transportation in America’s rural communities.

Rural transportation networks are vital to the nation’s economic growth, creating opportunity, and ensuring that no one is left behind. Yet many rural communities in the United States continue to face significant transportation challenges. For example, while only 19 percent of Americans live in rural communities, 69 percent of highway lane miles are in rural areas, nearly half of all truck vehicle miles traveled occur on rural roads, and two-thirds of all U.S. rail freight originates in rural areas.

One result of these challenges is a disproportionate high rate of highway fatalities in rural areas.

• 72 percent of large truck occupant fatalities,
• 67 percent of pickup occupant fatalities, and
• 58 percent of SUV occupant fatalities occur in rural areas.

In fact, 46 percent of total highway fatalities in our country occur on rural roads – and the fatality rate on rural roads is twice that of urban roads. This is of special concern because safety is the Department of Transportation's Number One priority.  So it is vitally important not only to growth and competitiveness, but to safety, that the transportation and infrastructure needs of rural communities be addressed.

The U.S. Department of Transportation is working hard to address these inequities through a number of initiatives, including:

• Funds Administration. The Department distributes about $70 billion annually for infrastructure needs, much of which goes to State governments via formula stipulated by law. Yet DOT has several discretionary grant programs as well.  Since FY 2016, the rural share of discretionary funds awarded nearly doubled in the nine transportation programs that distinguish between rural and non-rural. And the number of awards made to rural projects more than tripled.
• Rural Project Initiative Implementation. This initiative allows more sponsors of infrastructure projects in rural communities to utilize the Department's major loan program, which offers very generous financing and loan repayment terms.
• ROUTES Initiative. The Rural Opportunities to Use Transportation for Economic Success (ROUTES) initiative helps rural communities access Federal transportation grant funding and loan programs. It also improves data sharing to help rural communities better analyze their transportation needs. As part of this initiative, the Department established a ROUTES Council, which supports rural communities to better identify and assess their transportation needs, and re-balance DOT discretionary grants to address those needs.  Rural Transit. Access to transportation can also be a significant challenge for seniors, people with disabilities and low-income communities in rural areas. Public transportation is a lifeline for them. So the ROUTES initiative will be addressing public transit in rural areas, as well.  Addressing rural-urban transportation disparities will help ensure a more inclusive transportation network for the future. That’s a goal that all countries can and should incorporate into their national transportation plans.

The Administration recognizes that transportation in rural areas functions as a lifeline for farmers, working families, seniors, veterans, individuals with disabilities, tribal residents, and others. To that end, this Administration has placed considerable emphasis on underserved communities like those in rural America. We have met and exceeded our obligation regarding rural transportation in the 2015 FAST Act, and we continue pressing forward with new ways to improve rural mobility. In addition to efforts by DOT Operating Administrations, our innovative financing arm, the Build America Bureau, has also played a key role in supporting development of rural transportation infrastructure.  Of course, while we have increased focus on rural areas, we are as intent as always on improving transportation systems throughout the Nation. 

Rural transportation networks 

Rural transportation networks are critically important for domestic production and export of agriculture, mining, and energy commodities as well as the quality of life for all Americans. For example, two-thirds of rail freight originates in rural areas, and nearly half of all truck vehicle-miles-traveled (VMT) occur on rural roads. And, 70 percent of America’s road-miles are in rural communities.

At the same time, 90 percent of posted, or limited weight, bridges, which heavy trucks cannot use, are in rural areas. Freight-hauling truck drivers in rural areas often contend with lengthy detours to find a bridge able to handle the weight; these detours consume fuel and time.  In addition to the problem of weight-limited bridges, 80 percent of the bridges in the U.S. that are rated to be in poor condition are in rural areas.

Not surprisingly, a disproportionate number of roadway fatalities occur in rural areas based on exposure measures like population and VMT.  While only one-fifth of the nation’s population lives in rural areas, in 2018, 46 percent of the nation’s highway fatalities occur on rural roads.  Breaking that down into deeper categories, in 2018, 72 percent of large truck occupant fatalities, 67 percent of pickup occupant fatalities, and fifty-eight percent of SUV occupant fatalities occur in rural areas.  And, the highway fatality rate per 100 million VMT in rural areas is more than twice that of urban areas. It is worth noting that 44 percent of personal vehicle miles traveled on rural roadways are driven by urban residents traveling to destinations outside their home metro areas, so rural roadway safety matters for our entire country.

Many people living in rural and tribal communities can ill-afford to drive the considerable distances they must travel to work and other destinations.  That is why 81 percent of U.S. counties provide rural transit service.  The disparity in transportation conditions between urban and rural communities are exacerbated because urban communities are better equipped to seek out federal resources to address their needs.  Rural areas often lack the capacity to fully compete for federal transportation infrastructure funding.

This Administration is working hard through the Department of Transportation to ensure that rural and all other communities are treated fairly and equitably.

The Department’s Efforts and Achievements

ROUTES: Rural Opportunities to Use Transportation for Economic Success

Addressing these disparities calls for a sharper focus on our investments in rural areas to meet national priorities such as improving safety and economic competitiveness in all parts of the country. That’s why Secretary Chao launched the ROUTES initiative, in October 2019. The ROUTES initiative will improve how the DOT considers rural project applications in our discretionary grant programs, including ensuring that project costs, local resources, and the benefits to the American people and economy are appropriately considered.  Under this initiative, ROUTES will provide rural areas with user-friendly information to improve planning and development of grant applications.  It will also give projects in rural communities due consideration in grant programs, to assist in meeting their transportation needs.

Under the initiative, the Department has already begun collecting input from stakeholders on the benefits rural projects offer for safety and the economy, as well as the types and degrees of assistance rural projects require. The Department recently issued a Request for Information (RFI) seeking input on a number of rural transportation-related issues.  This includes comments and data pertaining to current unmet needs in rural transportation, barriers rural communities face in addressing these transportation needs, stakeholders' experiences with applying to and using DOT discretionary grant and credit programs, and opportunities for the DOT to improve its services and technical assistance to rural communities in relation to these grant and credit programs, within the limits of statutory requirements.  The RFI closed yesterday, and, as of Friday January 24, we had already received input from 130 respondents, and we expect this is just the beginning of an effort to launch more data-driven approaches to better assess the need for and benefits of rural transportation infrastructure projects.

Given the feedback we have been receiving, we are trying to make DOT’s discretionary grants easier for rural applicants to understand.  For instance, we are currently developing a Toolkit that will help rural (and other) applicants identify which discretionary grant programs could help fund their particular safety and infrastructure priorities.  We expect to make the Toolkit available this spring.

We have also established the ROUTES Council, an internal deliberative body of DOT leadership that will review and use input from the RFI as well as other public input to improve the alignment of the Department’s discretionary funding programs with the needs of rural communities to address National transportation goals.  The Council held its first meeting in November 2019 and met again on-schedule in January.  It will review feedback received through the RFI and seek additional input from stakeholders, starting with State DOTs, local governments, and national organizations.  The Council will identify critical rural transportation concerns, coordinate efforts among DOT’s Operating Administrations, and shape the resources ROUTES avails to rural stakeholders.

Other Efforts

In addition to the new ROUTES initiative, the Department is also seeking other opportunities to benefit rural and other communities.  Just two weeks ago, for example, Secretary Chao announced an interactive map application showing transportation infrastructure against a background layer featuring the U.S. Internal Revenue Service’s designated Opportunity Zones and the U.S. Census Bureau’s Urbanized Areas.  Using the map, potential investors can discover which Qualified Opportunity Zones, many of which are in rural communities, offer good transportation connectivity.  At the same time, other investors can identify rural Opportunity Zones that would benefit from private investment in transportation.

Grants

As previously mentioned, a meaningful way to help rural America is through discretionary grants.  Just two months ago, in November 2019, Secretary Chao announced the award of $900 million to 55 infrastructure projects in 35 states through the Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grants program.  Fifty percent of that investment was awarded to 31 projects in rural communities.  In the previous year, the Department awarded $965 million – 64 percent of its $1.5 billion appropriation – to 62 rural projects.

Last July, the Secretary announced the award of $856 million in Infrastructure for Rebuilding America (INFRA) grants.  Fifty-four percent of those awards, $465 million, went to rural projects, far exceeding the FAST Act’s statutory requirement of 25 percent.  And, 10 percent of the FY 2019 INFRA investment was awarded to small projects with costs between $5 million and $25 million, most of which were in rural communities.  Two weeks ago, the Secretary announced the Notice of Funding Opportunity for the FY 2020 INFRA grants, and the Department will continue to adhere to or surpass the statutory requirements.

The Department’s Operating Administrations were also mindful of rural America in their FY 2019 funding practices.  For example, in FY 2019, the Federal Transit Administration (FTA) awarded $119 million in Buses and Bus Facilities Discretionary Grants, 28 percent of the program’s total awards, to projects in rural communities.  FTA also awarded 41 percent of its Innovative Coordinated Access and Mobility Pilot Program grants, $3.9 million, to rural projects, and a full 100 percent of its Tribal Transit Program awards, $5 million, went to rural communities.

Also in FY 2019, the Federal Railroad Administration awarded $179 million in Consolidated Rail Infrastructure and Safety Improvements (CRISI) awards to rural projects, 31 percent of its awards for that year.  And, in August 2019, the Federal Highway Administration awarded $225 million in grant funding under the Competitive Highway Bridge Program (CHBP) to 20 bridge improvement projects in 18 states, all of which have population densities fewer than 100 persons per square-mile.

These awards alone, only a sample of the Department’s effort in the past 13 months to champion rural transportation improvements through discretionary grant awards, total more than $2.4 billion.  These grants are a powerful tool the Department is using to address rural transportation needs, in addition to the Operating Administrations’ formula grant funding, much of which is also targeted for rural communities.

The Build America Bureau is developing products and processes specifically tailored to rural communities

Authorized by the 2015 FAST Act and established in July 2016, the Department’s Build America Bureau administers the Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation and Improvement Financing (RRIF) credit programs, administers the INFRA grant program, allocates Private Activity Bonds, and serves as a one-stop shop for project sponsors to assist them in navigating the complex regulatory, governance and financial processes necessary in delivering successful transportation projects.

New Executive Director

The Bureau’s Executive Director, Morteza Farajian, Ph.D., joined the Department in April 2019.  Formerly, he served as Acting Deputy Secretary of the Virginia Department of Transportation (VDOT) and Director of that State’s Public-Private Partnership (P3) program office. 

Three Loans Issued During the Past 90 days

Dr. Farajian’s experience as a practitioner is already paying tangible dividends as three new loans have been issued by the Bureau in just the past 90 days alone.  These loans, totaling $1.6 billion, will result in the delivery of $6 billion in new transportation infrastructure The Bureau’s participation in these projects alone has generated more than $3 billion in non-Federal capital investment, further leveraging Federal dollars.

The Bureau is implementing two overarching goals that will benefit American transportation infrastructure in general and rural communities in particular:

• Enhance the pipeline of eligible projects to fully utilize the capacity provided by Congress, and;
• Diversify the pipeline of eligible projects by geography (i.e., urban and rural, new States, etc.) size, and type (i.e., highway, transit, rail, port, etc.), to ensure an equitable distribution of program benefits.

To achieve these goals, the Bureau is focusing on three key activities that will enable increased utilization and a more diverse pipeline of projects.  They are:

• Conduct active, focused outreach to prospective borrowers that may not know of the Bureau, or of its new products and services.  This activity includes the development and delivery of products that are best suited to underserved borrowers;
• Enhance the scope and scale of technical assistance to project sponsors, especially new, smaller borrowers, and;
• Continue to streamline the credit process, improving efficiency and reducing costs to borrowers.

The Bureau has considerable lending capacity and expertise to significantly expand its loan portfolio, including loans to rural borrowers.

Tailored Products

Historically, the TIFIA loan program has financed large, complex highway, bridge and transit projects that largely serve urban communities.  We have the capacity to continue to support these projects.  However, the TIFIA and RRIF loan programs – with some modifications (within our existing authorities) – can be tailored to focus on helping other geographic areas and asset classes that have, until now, not received Bureau assistance.  One area of Bureau innovation that has been particularly valuable for rural communities is the effort to develop products tailored to the specific needs of these communities.

TIFIA Rural Project Initiative

The first of these is the TIFIA Rural Projects Initiative (RPI), which Secretary Chao announced in November, 2018.  RPI represents a targeted and significant easing of financial barriers to participation in the TIFIA program – while maintaining robust creditworthiness standards to protect taxpayers.  By combining existing authorities, the Bureau offers qualified borrowers a number of significant benefits.

An eligible RPI project is one that is not inside a U.S. Census Bureau-designated urbanized area with a population greater than 150,000 persons and that has eligible project costs not greater than $100 million.  For qualifying projects with total eligible costs between $10 million and $75 million, the usual application costs (e.g. the cost of procuring independent financial and legal advisors) may be paid by DOT.  This often represents a savings of several hundred thousand dollars.  Eligible RPI may borrowers receive a 50 percent interest rate reduction.  As of mid-January, a rural project could receive a loan at a fixed interest rate of slightly over one percent for 30 or more years.  Additionally, some rural borrowers may benefit from the Bureau’s flexibility – we can also provide short-term assistance at even further reduced interest rates. In addition to the lower interest rate available under RPI, eligible project sponsors under this program can borrow up to 49 percent of a project’s eligible costs instead of the 33 percent ceiling more typical of a TIFIA loan.

Currently, the Bureau is providing technical assistance to develop 12 RPI projects in eight states.  This represents approximately 10 percent of the projects in the Bureau’s pipeline.

RRIF Express

Small and medium-sized freight railroads represent a significant opportunity for economic growth in rural communities.  Even small marginal savings in shipping costs for agricultural, mining, energy or manufacturing goods can have a major impact in global competitiveness, and about 80 percent of short line and regional freight railroads are in rural America.  As such, the Bureau has developed a pilot program that focuses on improving the borrowers experience for short line and regional railroads, called RRIF Express, which I announced in mid-December, 2019.

Although the Bureau has, since its inception, closed four loans under the Department’s RRIF program, in its current form, RRIF is significantly undersubscribed by smaller railroads.  Like TIFIA RPI, RRIF Express eases several financial barriers for prospective borrowers.  A qualifying RRIF Express borrower is a U.S. Class II or III short line or regional railroad, seeking a loan up to $50 million that meet the requirements set forth in the Notice of Funding Opportunity.

The cost of paying for the Bureau’s external financial and legal advisors and the Credit Risk Premium often poses a significant obstacle for prospective RRIF borrowers.  Under the RRIF Express initiative, these costs are paid by DOT, using funds from appropriations. In addition, RRIF Express also promises to expedite the credit process by streamlining reviews and speeding the procurement of outside advisors. 

The 90-day application window for RRIF Express opened on January 13, 2020 and we hope to receive a healthy number of qualified expressions of interest. 

Innovative Procurement Model – Short-Term Design Build Finance

The TIFIA loan program can provide loans of up to 35 years after the date of substantial completion.  However, we are learning that some jurisdictions, including State DOTs, might benefit more from shorter-term loans to increase efficiency and reduce the costs of projects they otherwise would deliver in phases.  A high proportion of these jurisdictions are in rural America.

When projects are phased, costs and schedules can increase considerably:  multiple mobilizations, de-mobilizations, numerous contracts and sequential construction all impact cost and schedule.  Future phases of construction also incur cost escalations, often exceeding four percent annually.

Additionally, because rural projects often are not good candidates for tolling, they often overlook Bureau credit as a financing option at all. 

To address these gaps, the Bureau has introduced an innovative procurement concept that offers alternatives that allow project sponsors to construct projects more quickly in a single phase, potentially reducing costs due to single contract, single mobilization, but also avoiding annual cost escalations incurred by future phases. 

Under this concept, projects can proceed into construction of all phases in a single procurement and utilize shorter-term loans, further reducing costs.  This procurement can take the form of a Design-Build-Finance procurement, where the developer actually borrows from the Bureau while also delivering into service new or upgraded transportation options more quickly. 

Because the Bureau can lend to the contractor and not the public sponsor, this can be particularly useful for projects whose sponsors lack borrowing authority, or those who typically use a pay-as-you-go infrastructure funding model.

In short, the Bureau – in engaging jurisdictions that have not typically borrowed from TIFIA and/or RRIF – is finding that a one-size-fits-all approach to lending is not optimal and offering a wide variety of financing options can help a far more diverse pool of applicants deliver their projects more efficiently and at lower cost.

Education & Technical Assistance

Since April, 2019, the Bureau has increased its Outreach and Project Development (OPD) team by 150 percent, adding six staff members, all of whom bring considerable experience.  This team has been instrumental in performing more up-front planning with project sponsors and providing more technical assistance to project sponsors earlier in the project cycle.

This earlier and more active engagement will facilitate a faster credit process with less re-work and inefficiency, especially for smaller, first-time borrowers such as rural project sponsors.  It also will help project sponsors avoid inadvertently making the project ineligible for a loan by taking actions such as initiating non-qualified procurements, missing critical environmental review requirements or not sourcing materials in the United States.  Sponsors of larger projects, typically urban or suburban, often avoid this type of misstep thanks to experienced internal resources and to the participation of outside consultants and advisors.  Project sponsors less experienced with Federal processes and less able to access the valuable expertise of outside consultants cannot benefit from this advantage, an inequity that earlier Bureau participation from a more well-staffed OPD team will remediate.  In addition to allowing the Bureau to support more projects earlier in their development, a fully staffed OPD team allows the Bureau to educate more prospective project sponsors about the Bureau’s products and services.

While the Bureau continues to represent itself at the larger, main-stream infrastructure and public-private-partnership (P3) conferences and events, we have also targeted the events that cater to smaller jurisdictions, rural communities, towns and counties.   To educate potential project sponsors and access more prospective projects, the Bureau is now focusing on these venues, including, for example, the 4th National Technical Assistance Conference of the Rural Transit Assistance Program this past October.  We look forward to introducing the Bureau, its products, and its services to the membership of the National Association of Towns and Townships this March.

We have also participated in regional meetings sponsored by the U.S. Department of Commerce’s Economic Development Administration (EDA), including sessions in West Virginia and southeastern Massachusetts, where the EDA convenes planners from distressed communities seeking technical assistance to develop the infrastructure needed for economic growth.

The Bureau has also increased its work with like-minded organizations such as the Association of American State Highway and Transportation Officials, planning associations, contractors and industry groups.  This has borne considerable fruit already.

The Bureau’s recent engagement with the American Short Line and Regional Railroad Association was instrumental in the successful launch this past December of the RRIF Express pilot program for Class II and III short line and regional railroads.

State visits

Another important recent initiative is the Bureau’s outreach to new States.  Under this initiative, the Bureau has reached out specifically to States with little or no DOT credit experience or other Bureau engagement.  Many of these states are largely rural.

Bureau leadership visits the State capital for a full day of meetings introducing the Bureau to the State DOT director or secretary, participants from the Governor’s office and congressional delegation, key State legislators, administrators of the various State DOT departments, economic development organizations, planners, and county and municipal leaders.  Many of the participants during these visits indicate they had never heard of the Bureau or the Department’s credit programs and that they plan to utilize the Bureau and its products and services in the future.

Since June 2019, the Bureau has visited with ten new states, including Alabama, Mississippi, Wisconsin, Minnesota, North Dakota, Montana, Nevada, Connecticut, Pennsylvania, and Louisiana.  Those visits have resulted in nearly two dozen prospective projects.  Currently, the Bureau has visits planned with Tennessee and New Mexico, and specific discussions are underway with four other states: Arkansas, Arizona, Maine, and Vermont.

Regional Infrastructure Accelerators

Another element in the Bureau’s ongoing mission to provide more technical assistance to rural communities is the Regional Infrastructure Accelerator program.  By pooling resources, regional accelerators can assist local governments in developing improved infrastructure priorities and financing strategies for the accelerated development of projects, many of which would be eligible for TIFIA, RRIF and other innovative programs.  Accelerators will act as multipliers of the Bureau’s existing staff and resources, helping develop infrastructure planning and delivery capacity in rural communities and elsewhere.

As a result of last month’s $5 million Congressional appropriation, the Bureau is developing a Request For Information to seek input from interested parties about the most effective, transparent and expedient ways to structure and deliver the accelerator program.  Upon receipt of public feedback, we intend to issue a Notice of Funding Opportunity to fund, through grants, a small number of Regional Infrastructure Accelerators as a demonstration program that will continue to explore more innovative and efficient ways to identify, finance and deliver projects – especially in small town America.

Conclusion

The Department of Transportation and its Build America Bureau have placed a long-overdue emphasis on Rural America.  Through the ROUTES Initiative, discretionary grant programs and the innovative solutions offered by the Bureau, we have been focusing, and are continuing to focus, all available resources and authorities on solutions for rural communities.  Focused Bureau outreach, tailored products such as TIFIA RPI, RRIF Express, Build It Now and others, combined with technical assistance and streamlining the process have already begun to produce tangible dividends for small-town America. 

We know we have much more work ahead as we continue the important job of solving those challenges and improving the both the safety and connectivity of transportation in rural America.  We look forward to working with the Committee and other partners to continue to remove barriers to safety, economic growth and mobility for rural and urban communities alike.

Thank you.

The Boeing 737 MAX: Examining the Federal Aviation Administration’s Oversight of the Aircraft’s Certification

STATEMENT OF STEPHEN M. DICKSON
ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION
BEFORE THE
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE,
UNITED STATES HOUSE OF REPRESENTATIVES
THE BOEING 737 MAX:
EXAMINING THE FEDERAL AVIATION ADMINISTRATION’S
OVERSIGHT OF THE AIRCRAFT’S CERTIFICATION
DECEMBER 11, 2019

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

Thank you for inviting me here today to speak with you about the Federal Aviation Administration’s (FAA) approach to safety oversight and to provide you with an update concerning the Boeing 737 MAX. On behalf of the United States Department of Transportation and everyone at the FAA, I would like to, once again, extend our deepest sympathy and condolences to the families of the victims of the Ethiopian Airlines and Lion Air accidents. Deputy Administrator Dan Elwell and I have met with the family members and friends of those onboard. In these meetings, we have seen their pain, their loss, and it reaffirms the seriousness with which we must approach safety every single day. That is why we are working tirelessly to ensure that the lessons learned from these terrible losses will result in a higher margin of safety for the aviation industry globally.

Accompanying me here today is Earl Lawrence. Mr. Lawrence is the Executive Director of the FAA’s Aircraft Certification Service, where he is responsible for type certification, production approval, airworthiness certification, and continued airworthiness of the U.S. civil aircraft fleet including commercial and general aviation activities.

Status of the 737 MAX Return-to-Service

Safety is the core of the FAA’s mission and is our first priority. We are working diligently to ensure that the type of accidents that occurred in Indonesia and Ethiopia—resulting in the tragic loss of 346 lives—do not occur again. The FAA is following a thorough process for returning the 737 MAX to service. This process is not guided by a calendar or schedule. Safety is the driving consideration. I unequivocally support the dedicated professionals of the FAA in continuing to adhere to a data-driven, methodical analysis, review, and validation of the modified flight control systems and pilot training required to safely return the 737 MAX to commercial service. I have directed FAA employees to take whatever time is needed to do that work.

With respect to our international partners, the FAA clearly understands its responsibilities as the State of Design for the 737 MAX. In September, we met with more than 50 invited foreign civil aviation officials, all of whom have provided input to the FAA and will play a role in clearing the 737 MAX for flight in their respective nations. We are also conducting and planning a number of outreach activities, including providing assistance to support foreign authorities on return-to-service issues; maintaining transparency through communication and information sharing; and scheduling meetings for technical discussions.

As I have stated before, the FAA’s return-to-service decision on the 737 MAX will rest solely on the FAA’s analysis of the data to determine whether Boeing’s proposed software updates and pilot training address the known issues for grounding the aircraft. The FAA fully controls the approvals process for the flight control systems and is not delegating anything to Boeing. The FAA will retain authority to issue airworthiness certificates and export certificates of airworthiness for all new 737 MAX airplanes manufactured since the grounding. When the 737 MAX is returned to service, it will be because the safety issues have been addressed and pilots have received all of the training they need to safely operate the aircraft.

Actions that must still take place before the aircraft will return to service include a certification flight test and completion of work by the Joint Operations Evaluation Board (JOEB), which is comprised of the FAA Flight Standardization Board (FSB) and our international partners from Canada, Europe, and Brazil. The JOEB will evaluate pilot training needs. The FSB will issue a report addressing the findings of the JOEB and the report will be made available for public review and comment. Additionally, the FAA will review all final design documentation, which also will be reviewed by the multi-agency Technical Advisory Board (TAB). The FAA will issue a Continued Airworthiness Notification to the International Community providing notice of pending significant safety actions and will publish an Airworthiness Directive advising operators of required corrective actions. Finally, I am not going to sign off on this aircraft until all FAA technical reviews are complete, I fly it myself using my experience as an Air Force and commercial pilot, and I am satisfied that I would put my own family on it without a second thought.

Oversight of Aircraft Certification

Safety is a journey, not a destination—a journey we undertake each and every day with humility. Today’s unprecedented U.S. safety record was built on the willingness of aviation professionals to embrace hard lessons and to proactively seek continuous improvement. The FAA both welcomes and invites scrutiny of our processes and procedures. In addition to this Committee’s investigation, several independent reviews have been initiated to look at different aspects of the 737 MAX certification and the FAA’s certification and delegation processes generally.

The first review to be completed was one that the FAA commissioned—asking nine other civil aviation authorities to join the FAA in a Joint Authorities Technical Review (JATR) to conduct a comprehensive assessment of the certification of the automated flight control system on the 737 MAX. The JATR was chaired by former National Transportation Safety Board (NTSB) Chairman Christopher Hart and was comprised of a team of experts from the FAA, National Aeronautics and Space Administration (NASA), and the aviation authorities of Australia, Brazil, Canada, China, the European Union, Indonesia, Japan, Singapore, and the United Arab Emirates. Never before have 10 authorities come together to conduct this type of review. I thank the JATR members for their unvarnished and independent review and we welcome their recommendations.

The FAA also initiated a TAB made up of FAA Chief Scientists and experts from the U.S. Air Force, NASA, and Volpe National Transportation Systems Center. The TAB’s task is to conduct an independent review of the proposed integrated system, training, and continued operational safety determination for the 737 MAX. The TAB recently briefed me, and previously briefed this Committee, on their progress and the status of Boeing’s and the FAA’s responses to the return-to-service action items.

Last month, the FAA received recommendations from the NTSB and the Indonesian National Transportation Safety Committee’s accident report on Lion Air Flight 610. We are carefully evaluating the recommendations in both of these reports as we continue our review of the proposed changes to the 737 MAX. Work also continues on the Department of Transportation’s Inspector General audit of the 737 MAX certification, as well as this Committee’s investigation and other congressional reviews. Finally, we are also awaiting a report from the Secretary of Transportation’s Special Committee on aircraft certification. This blue-ribbon panel was established earlier this year to advise and provide recommendations to the Department on policy-level topics related to certification across the manufacturer spectrum.

We believe that transparency, open and honest communication, and our willingness to improve our systems and processes are the keys to restoring public trust in the FAA and in the safety of the 737 MAX when it is returned to service. The FAA is fully committed to addressing the recommendations from all of the various groups reviewing our certification processes. We will implement any changes that would improve our certification activities and increase safety. It would be premature, however, to discuss any changes concerning the FAA’s certification processes or FAA’s personnel at any level before this Committee’s investigation and other ongoing reviews have concluded, and we have a chance to carefully analyze their results and recommendations.

Moving Forward

Beyond the 737 MAX, the FAA is committed to addressing issues regarding aircraft certification processes not only in the United States, but around the world. These issues include:

• moving toward a more holistic versus transactional, item-by-item approach to aircraft certification – taking into account the interactions between all aircraft systems and the crew;
• integrating human factors considerations more effectively throughout the design process, as aircraft become more automated and systems more complex; and
• ensuring coordinated and flexible information flow during the oversight process.

Yet, if we are to continue to raise the bar for safety across the globe, it will be important for the FAA and our international partners to foster improvements in standards and approaches not just for how aircraft are designed and produced, but also how they are maintained and operated. We at the FAA are prepared to take the lead in this new phase of system safety. I see our strategy coalescing around four themes: Big Data; Just Culture; Global Leadership; and People.

Big Data

The FAA must continue leaning into our role as a data-driven, risk-based decision-making oversight organization that prioritizes safety above all else. We do that by breaking down silos between organizations and implementing Safety Management Systems supported by compliance programs and informed by data. We look at the aviation ecosystem as a whole, including how all the parts interact: aircraft, pilots, engineers, flight attendants, technicians, mechanics, dispatchers, air traffic controllers—everyone and everything in the operating environment. The FAA is examining the data we have, identifying data we may need, and looking for new methods for analyzing and integrating data to increase safety.

Just Culture

In addition to the technical work required for truly integrated data, a key enabler of a data-driven safety organization is a healthy and robust reporting culture. A good safety culture produces the data you need to figure out what’s really happening. If we know about safety concerns and we know where threats are coming from and how errors are occurring, we can mitigate the risks and fix the processes that led to those errors. A good safety culture demands that we infuse that safety data into all of our processes from top to bottom—in a continuous loop.

To be successful, a safety organization relies on a Just Culture that places great value on front-line employees and those involved in the operation raising and reporting safety concerns in a timely, systematic way, without fearing retaliation. A Just Culture starts at the top. It’s something leadership has to nurture and support everywhere in the organization. Employees have to see the results, see what the data is showing, and see how the organization is using analysis tools to identify concerns and errors and put actions in place to mitigate them.

Global Leadership

Today, the U.S. aviation system is the safest, most dynamic and innovative in the world, and we have the numbers to prove it. This is largely due to these collaborative approaches to safety. An example of the kind of collaboration and safety innovation we can use to lead the global aviation safety system to even higher levels of performance is Aviation Safety Information Analysis and Sharing (ASIAS). ASIAS is one of the crown jewels of the aviation safety system in the United States. It is unique in the world. Its purpose is to proactively discover and mitigate emerging safety issues before they result in an incident or accident.

ASIAS de-identifies airline and company proprietary data submitted by a growing number of stakeholders in accordance with information sharing agreements and governance protocols. This ensures a level of protection for participants and protects against disclosure of a specific flight crew or entity, which has helped to foster a culture of trust within the ASIAS program and across stakeholder organizations. As trust has developed, data access has increased and enabled advancements in data analysis methodologies through more automated capabilities and the fusing together of data streams that provide a 360-degree perspective on safety issues. This “fusion” bypasses the limits associated with analyzing data in separate silos of information, provides insight from multiple integrated data sources, and enables analysts to better understand the full context of safety events. ASIAS works in partnership with the Commercial Aviation Safety Team (CAST) that proactively mitigates risks thorough the voluntary adoption of Safety Enhancements.

Over the years, the FAA has exercised a leadership role in the promotion and development of global aviation safety. We have helped raise the bar on safety standards and practices around the world working with ICAO and other civil aviation authorities. We have an opportunity to do even more. We are committed to expanding our efforts with other authorities around the world and to fostering safety standards and policies at ICAO to help meet the public’s expectations of the highest possible levels of safety globally, even in areas the FAA does not regulate directly. Without safety as a foundation, we cannot have a vibrant aviation industry in any country, much less between countries. Our international air transportation network is a tightly woven fabric that is dependent on all of us making safety our core value.

People

We live in an incredibly dynamic time in aviation, with new emerging technologies and capabilities transforming the NAS. But at its core, a huge technical, operational, and regulatory agency like the FAA is made of people—people who are driven to serve, people with families, hopes and dreams, and most importantly, people who are dedicated safety professionals. I have the utmost respect for the jobs that they do every day, making sure our skies are safe and that the operation of the system is efficient—and serves the public—as well as it possibly can. It’s now time to show the next generation of aviation leaders what incredible opportunities lie ahead for them in our field, both personally and professionally. It is the people who will innovate and collaborate to take us to the next level of safety, operational excellence, and opportunity.

Conclusion

Aviation’s hard lessons and the hard work in response to those lessons—from both government and industry—have paved the way to creating a global aviation system with an enviable safety record. But as I mentioned earlier, safety is a journey, not a destination. We have achieved unprecedented levels of safety in the United States. Yet what we have done in the past and what we are doing now will not be good enough in the future in an increasingly interconnected world. We must build on the lessons learned, and we must never allow ourselves to become complacent.

Those lessons teach us that in order to prevent the next accident from happening, we have to look at the overall aviation system and how all the pieces interact. Time and again, it has been shown that accidents happened due to a complex interaction of multiple issues. Focus on a single factor will lead us to miss opportunities to improve safety that come from regulators and industry raising the bar not just in certification, but in maintenance and training procedures.
That will require truly integrated data and collaboration, enterprise-wide. When our data—and our organizations—are kept in silos, we may miss information that could provide an opportunity to make important safety decisions that will improve processes or even prevent accidents entirely. We have to be constantly learning from each other—regulator and those we regulate—to help each other improve.

The United States has been, and will continue to be, the global leader in aviation safety. We are confident that continuing to approach this task with a spirit of humility, openness, and transparency will bolster aviation safety worldwide.

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

Highly Automated Vehicles: Federal Perspectives on the Deployment of Safety Technology