Transportation secretary elaine chao joins the governors in a discussion on infrastructure. This is an hour. [crowd noise] [crowd chatter] good afternoon. I am terror of the development and Congress Commerce committee. Today is closing the plenary session. I want to thank all of the governors for joining us and making time in your agenda. Lets get started. States continue to be the debaters of innovation and innovative policy. No place is that more true than policies that states are pursuing to prepare for the nations transportation networks. As new and Innovative Technologies truly revolutionize the sector. As we see change occurring at an amazing rate, the governors are reshaping how states consider Infrastructure Investments. We will examine the challenges and opportunities for states and Innovative Technology as it becomes an integral part of the nations infrastructure. Im hoping this conversation will provide a chance to examine policy solutions, spurring the safe transition and implementation of new technologies into our roadways and share success i know many of you have already had. In colorado, with regard to Autonomous Vehicles, we have been working hard to seek a better balance with the promotion of innovation and protecting Public Safety with our department of transportation, the state patrol cooperated with the first fully successful autonomous beer delivery in the nation. Appropriately in colorado. Just another reason why colorado is a great place to live. We are working towards smart infrastructure to communicate with fully Automated Vehicles driving on colorado roads. We call it projects mark 25. Smart ramp meters to help the system operate at peak efficiency. It has been used already successfully in australia to increase capacity. The u. S. Is having this introduced now. I think we are beginning to see early success in our state. Just a few of the things we are doing. I know many of you we will hear discussions of what youre working on. I will turn it over to governor ducey, who i have the pleasure of serving with as edc leadership this year. Governor, i look forward to hearing about the great work you your administration is doing as well to spur innovative Infrastructure Investments. Thank you governor hickenlooper. It is great to be here today, and secretary chao we are thrilled you are able to join us. I will revise and condense my remarks so we can have the maximum amount of time with you. I know so many governors here have questions around infrastructure and the opportunities. In arizona, we are embracing innovation that exists around transportation and infrastructure. We look at these as opportunities in transportation, in water, and in telecommunications. We are doing our best to lay the groundwork for a Bright Future in all of those categories. In arizona, water is especially an incredible concern. We built the fifthlargest metropolitan area in the middle of a desert. It is because we are good with water and with the 16 year drought, although it has been an incredibly wet winter and i hope it continues. We continue to look for ways to conserve and augment our water supply. We are proud in arizona today we use less water than we did in 1957, and our economy has grown 19 times since then and six times in terms of population. It is something we planned for and something we think about every day and something that really outlasts the term of any elected official. I can tell that water is not as great a concern in other parts of the country by the water pressure in the hotel rooms. [laughter] we also want you to know uber and lyft are two organizations and technology in terms of ridesharing apps we embraced in arizona. We like to think of ourselves as the kitty hawk for driverless technology. Not only do we have uber testing in arizona, we also have gm and google through an enterprise called waymo. I had the opportunity to drive in three Autonomous Vehicles from three different companies. This is a technology. I can tell you it is on its way and will be here soon and something that will affect all of our states in terms of how we will handle it. I think in arizona we have been fortunate because we have been focused on regulation and safety, but not in overly aggressive regulation. We were able to put 86 million additional dollars into our transportation budget last year on some focused projects, but transportation funding is something i think is a question all the governors have as to what federal spending is going to look like in the next four years. On telecommunications, we are paving the way for 5g technology that will give us faster download speeds and bring this infrastructure out to our rural areas. One other thing i want to talk on in arizona that i think is something we like we are seeing all across the country and the sharing economy, uber, lyft, airbnb are something topical in arizona with city and local government having power to regulate industries. We have gone out of her way in arizona to make sure we are as welcoming as possible both from a state and local perspective. We put a bill out that states that governments are not allowed to regulate a new industry as if it were an existing industry without explicit legislative authority to do that. I will give you a quick example. When i first came into office, the super bowl was going to be held in arizona in the first month. We heard from our director of weights and measures that his plan was to sting uber during the super bowl and shut them down with the regulations written for taxicabs. We quickly got a new director of weights and measures, and we lifted those regulations. We dont want to see the heavy hand of government being used in an overly aggressive way to stop these new innovative ideas that will provide such conveniences for our citizens. That, along with p3, we are focused on in the state of arizona. Im excited to hear from the secretary. Thank you governor ducey. I am going to do a brief introduction. This could well be 20 pages long. When i first met our new secretary of the u. S. Department of transportation elaine chao when i was the mayor of denver. She was the secretary of labor. They were doing some of the most innovative work and labor certainly ever done at that time. We worked together on two different projects, and her staff really was a treat. We are going to have a great partner, i think. Secretary chao has long and distinguished Career Public Service and the private sector and the Nonprofit Sector as just about anyone i know. Prior to serving at the department of transportation, secretary chao served as the secretary of labor from 2001 to 2009, where he focused on increasing the competitiveness of the workforce in the global economy, but also piloting competitive programs and grants to really get states to compete and try to create innovation on their own. Secretary chaos extensive Public Service record includes positions, and this is a remarkably broad array of a career. Ceo of united way of america, the director of the peace corps, deputy secretary of the u. S. Department transportation, chairman of the federal maritime commission, deputy maritime administrator and white house fellow specializing in transportation and trade. When not dedicating her time to the public sector, secretary chao has worked as Vice President of syndications at bank of america and at citicorp. I think we are all looking forward to hearing from her about the direction of the department of transportation in the coming years. Hopefully, we will have a vigorous dialogue here. Without further ado, i will turn it over to secretary chao who was sworn in just three weeks ago. Sec. Chao thank you very much, governor. [applause] sec. Chao i have to say, governor, when you are running through my resume i was thinking to myself, these people are going to think i cant hold a job. [laughter] sec. Chao thank you very much governor ducey and thank you to all of you for inviting me to discuss innovation and infrastructure with you. We really appreciate the opportunity. But i have to also give a big shout out to my home state governor, governor matt bevin of kentucky. [applause] the new Automated Technologies have the potential of dramatically changing commercial transportation and private travel, expanding access for millions within our borders. The private sector is driving these innovations, working with cities and states like yourselves. In addition to the commercial applications, Automated Technology can also help expand access to transportation for underserved populations, especially the elderly and disabled. I know that governor hickenlooper and governor ducey have ridden in Automated Vehicles and have been leaders in the technology. We want to thank you for your interest and leadership. Over 35,000 people perished in traffic crashes in 2005. This is a 7 increase over the previous year. Research shows that 94 of fatalities are due to human error. Fatalities and crashes. Automated technology has the potential to help eliminate human error and reduce crashes and fatalities significantly. There is a lot at stake in getting this technology right. To promote research and development, the department has d 10ar proved approve applications for Automated Vehicle proving grounds. Drones are another Exciting Technology. Companies are testing numerous commercial applications for drones. Ubs is testing a delivery drone in florida. But drones also play an Important Role in safeguarding our infrastructure. Rail lines already use them for safety checks on equipment and tracks. They also have been used in Emergency Response in United States for more than a decade. In kentucky, firefighters are using drones with thermal cameras to fight fires, locate the lost, or help in Disaster Recovery efforts. Drones can also be used to inspect pipelines for leaks, protect First Responders from in accidents involving derailments, and hazardous materials. And also help save lives in many emergency situations. In september of last year, the national Highway Traffic Safety Administration issued a federal Automated Vehicle policy. This is a set of guidelines, not a set of rules, and this administration is evaluating this guidance and will consult with you and other stakeholders as we update it and amend it to ensure it strikes the right balance. We will also be asking for your input as the faa to develop standards and regulations to ensure that drones can be safely integrated into our countrys airspace. We want very much to work with you and other stakeholders to ensure the federal government is a catalyst for a safe, effective technology. Not an impediment. America is a beacon throughout the world because of our innovation, our creativity, and our forwardlooking manner which is so much a part of what america is all about. I want to work with all of you and all of your states on emerging technologies, but i also want to issue a challenge to silicon valley, detroit, and all other Auto Industry hubs to step up and help educate a skeptical public about the benefits of Automated Technologies. One of the biggest obstacles to deploying this technology is consumer acceptance. And as regulators and Public Policy makers, we need to Work Together to educate and address legitimate public concerns about safety and privacy. So once again, let me conclude that i look forward to working with all of you. The future is so full of promise and we have got to use every tool available to modernize our infrastructure so that our countrys economy will remain competitive, grow, and produce good paying jobs for americas families. I look forward to our discussion. Thank you. [applause] i will open it up for questions from the governors. Bright light everywhere. I have one question, and i think that in colorado and around the country a lot of skepticism about Autonomous Vehicles, cars and trucks. As you just described, the human error involved in accidents and fatalities is 94 . Its astonishing. How can we confront that skepticism . And also, when we have Autonomous Vehicles in accidents where the technology breaks, how do we make sure that is not the skepticism increases even though overall we are saving lives . Sec. Chao i tried to address those issues by saying technology can do so much to improve the competitiveness of our country, the quality of life of our residents and citizens. But there is great angst and anxiety on the part of many people about emerging technologies. How they work, what they really mean, what it means for privacy. I think this is a wonderful forum each of your states that we all take a collective effort to recognize the very legitimate concerns and begin to talk about them, raise them up so we have a National Consensus and how to proceed with some of these regulations that we all entrusted with him for many and promulgating. Governor . Thank you for joining us. There has been a lot of talk in anticipation around infrastructure plan out of the administration. We are still a little on the preliminary side of that, but any insight you have for this group on the infrastructure plans coming out of the administration. Sec. Chao the administration is just getting started. We are beginning we are in discussion about various infrastructure plans. We are open and welcoming ideas. Tomorrow the president will be speaking with you and looks forward to discussing with you your ideas about infrastructure. This is a pivotal time for our country. This is a transformational time. There is no better time in my recent memory than now for the recognition that the infrastructure of our country is critical. And i believe many stakeholders involved in a Critical Infrastructure plan are in place. There seems to be bipartisan support for addressing the infrastructure needs of our country. So if not now, when, and i believe the time is now and you will have a great discussion with the president tomorrow. Governor wolf . From pennsylvania. I would just like to say to the two guys on either side of the, there is a lot of Autonomous Vehicle research being done pittsburgh, pennsylvania with uber and google and ford has made a big investment. Sec. Chao i have actually been to pittsburgh. Well thats great, we would love to have you back. On the infrastructure, this is a time when a lot of focus on what we have not done over the past years. I think the administration is focused on infrastructure is important because we have a lot of catching up to do. By some estimates 4 trillion nationally. It also seems to me a good time to do a reset on infrastructure. You are talking about Autonomous Vehicles, but there are other things other nations have done in infrastructure like highspeed rail, pipelines. While not completely autonomous actually help the Transportation System in ways the oldfashioned roads and bridges dont. How should we be that pennsylvania is the keystone state with a lot of eastwest traffic already. There seems to be a lot of Infrastructure Investment that can help the whole country. How can we as a commonwealth proceed to help baby think more broadly about this . Sec. Chao i should have mentioned high speed rail. We have a number of very impressive highspeed rail projects around the country. Most recently i received a visit from people involved in the dallashouston highspeed rail. Another one for the governor of other states as well. I think that highspeed rail is part of the thinking of the future of Transportation Systems of our country. This is not to say they are without problems. Eminent domain is a huge issue with any of the highspeed rail projects. We also have desires to make certain parts of existing infrastructure, rail infrastructure, high speed rail that is more difficult. Primarily because highspeed rail needs a straight away. To be able to gain the speed necessary to qualify it for highspeed rail. There has been a lot of talk in recent years about amtrak and how do we increase the speed without sacrificing safety. In the northeast corridor. I think these are very valuable and very legitimate concerns. We should be just addressing them. They may not be currently applicable, but as we talk about a future Infrastructure Project and a future infrastructure for our country i think there should be consideration. There needs to be consideration of different kinds of travel alternatives. For commercial and passenger use. And technology will enable us to achieve a futuristic look. That is much, much more in the future. We are thinking about shortterm infrastructure needs. Mediumterm and researcher needs and ultimately longerterm. The president is very futuristic looking. Hes thinking about a Transportation System, and infrastructure system that includes not only transportation but other aspects of Critical Infrastructure that will make us more competitive internationally. You will hear more about that from him tomorrow. There will be other aspects. But all of these issues i think our exciting, interesting, but they also present challenges. If we are to be futuristic and looking towards the future, we need to discuss them in a way that may not yield consensus right now but we need to be talking about them. You and your various states have an excellent opportunity to start some projects on a trial basis