Transcripts For CSPAN3 Transportation Secretary Elaine Chao Testifies On Capitol Hill 20170517

Watch the cspan cities tour of trenton, new jersey, saturday at 5 00 p. M. Eastern and sunday at 2 00 p. M. On cspan3. Working with our cable affiliates and visiting cities across the country. Transportation secretary elaine chao gave her first testimony before congress on the trump administrations plan to address the nations infrastructure challenges. The Senate Environment and public works hearing runs about two hours. I call this hearing to order. Today we are welcoming the secretary of transportation, the honorable elaine chao, to testify before the Senate Committee on environment and public works on our nations infrastructure needs. Madam secretary, welcome to the committee. The Senate Environment and Public Works Committee has always taken the lead on infrastructure issues in the senate. When unveiled, other committees infrastructure proposals will increase funding and provide streamlining requirements for the construction of pipelines, rail, housing, and large urban projects of various kinds that may be financed through Public Private partnerships, no name a few of the issues. However, the nations highways, roads, and bridges should be an essential component of any infrastructure built. Its up to our committee, in bipartisan way, working with the administration, to invest dollars in formula and nonFormula Programs in a fiscally responsible way. In a recent hearing in this committee, wyoming department of transportation director bill panos stated in written testimony that using the current predominantly formulated fast act approach would ensure both rural and urban states participate in the initiative and would push it out to the public promptlily. I agree. Using the formulabased approach will expedite ensuring that highway projects will be built faster. Public private partnerships can be effective in youre areas but dont work for rural areas like wyoming and other rural states represented on this committee. The commissioner testified on behalf of the National Association of counties, stating that the difficulty of rural areas to pay for infrastructure and the increasing costs of construction, she stated, quote, in addition to facing growing demands on local Revenue Sources, Rural Counties are facing rising costs. Based on the highway construction price index, the cost of construction, materials, and labor for highway and bridge projects increased 44 between 2000 and 2013, outpacing the 35 increases in general inflation. In part, to help address cost concerns expressed by both rural and urban communities, this committee recently held a hearing calling for better, faster, cheaper, and as senator c carper added, smarter highway and road projects. Working with this administration, with you, madam secretary, and with member of this committee, we do need to find ways to get projects started faster, build better roads and reduce costs. Simplifying these processes will allow Construction Companies to start hiring and for workers to begin building faster. If we find ways to streamline review processes, we can initiate projects expeditiously. Less time, money, and staff effort would be dedicated to regulatory compliance. When we find opportunities to streamline regulation, it enables state departments of transportation and other regulated entities to focus more closely on delivering transportation projects and programs and do a better job of them. This administration also has a role to play in correcting recent proposals that unnecessarily subjected rural state department of transportation to the same rules as more densely populated states. The idea that combatting congestion should require wyoming or alaska or south dakota to report on traffic volumes on roads that are infrequently traveled is a waste of valuable time and taxpayer resources. Most importantly, meeting these requirements meant for more urban areas takes time and money. It impacts a rural states ability to complete projects. We also have concerns about longstanding barriers that exist at the federal level, at the department of transportation, and at the state level that might interfere with application of technologies that can accelerate project delivery at lower costs. A june 2016 report by mckinski in Company States that Large Capital projects typically take 20 longer to finish and are up to 80 over budget. One of the reasons stated is that the Construction Industry is one of the industry than is the least digitized. So modifying policies to allow for Technological Innovations as identified in that report such as designing with new materials, digital mapping, intelligence assessment management and decisionmaking, paperless projects and other technologies, they can save taxpayer money and speed construction. Technological innovations such as these are common sense and must be allowed to be used. I believe we can Work Together in a bipartisan way to help our communities address our infrastructure needs. I look forward to working with the secretary and my colleagues to help accomplish these things. With that i invite the Ranking Member senator carper for his Opening Statement. Thank you, mr. Chairman. Madam secretary, delighted to see you here. Delighted that youre in this position. I think all of us supported your nomination and look forward to working with you. Thank you for visiting had we a couple of weeks ago. One of the things my colleagues, the secretary and i talked about is what is the role of government. Abraham lincoln used to say the role of government is to do for the people what they cannot do for themselves. I think the role of government is to create a nurturing environment for job creation and job preservation. In our business, if people have jobs, theyre able to support their families and themselves, for us its actually pretty easy. And the nurturing environment for job creation, job preservation, includes a lot of things, it includes workforce, it includes access to capital, the it includes energy, dependable energy, tax policies that foster Economic Growth that are deemed to be fair, that dont explode our budget deficits and so forth. But another big factor, and thats the reason were having our hearing today, another big factor, the nurturing environment for job creation, job preservation, is the ability for people to go where they need to go, when they need to go, and for us to be able to ship and move goods throughout this country in a Cost Effective way. And i am excited that were going to have a chance to take this up and discuss this with you today and we look forward to an ongoing conversation with you and your colleagues. Youve taken this leadership at a critical time for our country. And i think its an exciting time. What did einstein used to say, in adversity lies opportunity. Our job is to seize the day, carpe diem. We face this crisis in large mart because we havent raised the gas and diesel tax in some 24 years, have not adjusted for inflation. Revenues have stayed flat while Construction Costs to build roads, highways, bridges, continue to increase. We managed to pay for the fast act in 2015 but literally pilfering some 70 billion from other accounts. Well need to find about 115 billion in 2020 in order to continue providing the same level of funding plus inflation for the next fiveyear bill. In fact when we take up the next transportation bill, im told well need to do a lot more than just maintain our current levels of spending, plain and simple, the amount were spending today is woefully short of what we ought to be spending if we want to have the roads, the highways, the bridges that our country and its people need. We face an 836 billion backlog of good highway and bridge projects. We have a 90 billion backlog for transit. Put them together and its almost like a trillion dollars. The 2017 report card from the society of Civil Engineers gave our roads and this nation a d as in dog, not delightful, dog, and our Transportation Systems received a d minus, how much lower can you go . The federal government i believe should lead the way. While at the same time making sure were spending that money in a Cost Effective way. Well come back to that later on. But thats why i was heartened to hear president Trumps Campaign pledge to spend 1 trillion on infrastructure. I hope that when the administration finally releases its proposal, it will include plans for direct spending to address the investment backlog. We also have to choose investments wisely in order to make the best use of scarce federal dollars. Some of the changes made by this committee in the last two authorization bills oftentimes referred to as streamlining will help improve Transportation Planning and project delivery. Unfortunately, a number of these changes have not yet been implemented, as you know, by the department of transportation. The roads have been put on hold for the last couple of months. I sincerely hope you and your team will ensure fast and effective implementation of fast act provisions as it relates to streamlining. The transportation world today also faces a grave safety challenge. In the last year, more than 40,000 people lost their lives on our roads. Thats more than all the people we have who live in dover, delaware. Over the last two years, this number has increased more quickly than at any time in the last half century. As you know, safety is a central part of the mission of the department of transportation. And we hope that youll make it part of your personal mission as its secretary. In short, theres no shortage of challenges ahead. As i said earlier, where theres adversity, there is also opportunity. A big part of our job is to find that opportunity. New technology and innovation in vehicles has the potential to dramatically improve safety and increase the efficiency of our roadways. We can build infrastructure that is stronger, lighter, less expensive and more sustainable. I hope it can point the way towards new sources of revenue, in a secure and Cost Effective way. Highway speed ez pass, i call that rock and roll. That might be part of the future for a dependable Revenue Source as we try to get our roads, highways, and bridges back in shape. We look forward to working with you, we look forward to your testimony, and look forward to working with a bunch of stakeholders across the country who are counting on us to do our jobs. Welcome aboard and good luck. Thank you very much, senator carper. Our witness today is the honorable elaine chao, secretary of the u. S. Department of transportation. Madam secretary, your full written testimony will be made part of the official record. We look forward to hearing your testimony. Please proceed. Thank you, chairman, Ranking Member, and members of the committee. Thank you for the opportunity to testify before this committee. Although ive talked with many of you individually, this is the first time that i am testifying as the secretary of transportation. So im pleased to share some thoughts on our countrys infrastructure challenges and to hear your concerns as well. As i mentioned during my confirmation, my three priorities are safety, infrastructure, and the future. Our countrys vast network of highways and bridges is a prime example of infrastructure that need attention in all three categories. After several years of going in the right direction, recent statistics have shown that highway fatalities, as mentioned, are increasing. Measured in lost time and fuel growing congestion is costing our economy and our citizens as much as 160 billion newannua a. It will require accommodations to the Smart Technology of the future. These challenges are wellknown to you, which is why passage of the fast act in 2015 was such an important milestone. It provided the department with new tools and more flexibility to speed up the repair, the rebuilding, and the refurbishment of critical infrastructure. Over the past two years, the department has begun to implement the provisions of the fast act. But much more can be done, especially in streamlining project permitting, approval, and delivery. And thats why we have initiated a complete review of how the fast act is actually being implemented. We want to ensure that the tools and flexibilities provided by the act are not encumbered by unnecessary and burdensome administrative requirements. Although this administration is only about four months old, let me share with you some of the infrastructure funding that has already been delivered. It includes 167, 166. 5 million, in tifia loans, and nearly 800 million in emergency grants to states and municipalities to repair Highway Infrastructure damaged by disasters. One notable award was 10 million in emergency relief provided to georgia after the collapse of a bridge over atlantas i85 highway, a major traffic artery that is critical to the local economy. In addition, the department is set to award a number of fast lane grants very shortly and will be issuing a solicitation for applications under the fast lane program. Were also taking a close look at the criteria use income awarding the departments discretionary loans and grants. We want to ensure that we are maximizing the opportunities to revitalize infrastructure provided by the fast act and that the needs of all parts of the country are addressed. As mentioned, the president has made infrastructure one of his Top Priorities. The administration will share its vision of what the infrastructure plan will look like soon, which will kick off our collaboration with the congress. As omb director mulvaney recently announced, the proposal will likely include 200 billion in direct federal funds which will be used to leverage 1 trillion in Infrastructure Investment over the next ten years. The goal is to use federal funds as an incentive to get projects under way and built more quickly with greater participation by state, local, and private sector partners. A key goal of this initiative will be incentivising private Sector Investment in infrastructure. We understand that not every Infrastructure Project, however, is a candidate for private investment. The administration recognizes the difference between rural and urban infrastructure needs. We anticipate that the president s proposal will reflect this understanding. Transportation infrastructure is essential to the 46 million americans who live and work in rural areas and to moving agriculture and other products produced in these areas to markets and ports. So i look forward to working with you to find solutions to our countrys infrastructure challenges. Not only to support Economic Development and job growth, but also to keep america connected. From the gulf coast to the great lakes, from the east coast to the west coast, transportation helps to knit our country together. So weve got to ensure that we take good care of these critical resources. And now ill be happy to take your questions. Thank you very much, madam secretary. I appreciate your testimony. And as we know, the administration has committed to a comprehensive infrastructure bill. As you mentioned, and as did i, the highways, roads, and bridges need to be a central component of any infrastructure bill. Could you talk a little bit more about the administrations view on ensuring that a major portion of the funding in any infrastructure package is used to do things to upgreat the nations highways, roads, and bridges, the fundamentals were focused on here . As mentioned, among the president s Top Priorities obviously is restoring, rebuilding, refurbishing, repairing the infrastructure of our country. This is a huge task which involves the entire executive branch. There has been an interagency workforce that has been established. There are 16 different agencies and departments that are part of this task force, to ensure that we are looking at the infrastructure proposal from a holistic point of view and including also all the stakeholders involved. So this Infrastructure Task force includes, for example, the treasury department, commerce, omb, transportation of course, agriculture, interior, department of defense, department of labor, fcc, veterans affairs. So the proposal will include not only transportation infrastructure but also which includes of course airports, roads, rail, highways, ports, inland water ways, but also energy, water, possibly broadband, veterans hospitals. So it will be a very comprehensive approach. To that end, there is also a great deal of attention given to two parts of this effort, and the front end part of permitting, and then the latter part about payfors. So this has been a very significant undertaking by the whole entire executive branch. In terms of using resources in a better way and a smarter way, one of the things i talked about in my Opening Statement were some of these onesizefitsall approach. When i see some of the proposals on measuring and combating Traffic Congestion in, say, new york, new jersey, california, they may make perfect sense, but in wyoming they dont, in terms of the amount of money we would have to spend to do the kinds of things, to monitor things, the roads between casper, wyoming, why i live, cody, wyoming, 214 miles. Theres one traffic light kind of halfway in between and people dont worry about the amount of traffic. The reason they put the traffic light there was not that they felt they needed it, many years ago, but they were just concerned that when students went to the university of wyoming at laramie, they would have a traffic light, so they put a traffic light up. Are there ways we can Work Together to look for common s s sense solutions for Rural America . Absolutely. You mentioned your concerns, we take note of that. I come from a rural state myself. As we go forward, the administration wants for very, very emphatic that it will understand the concerns of Rural America. Could you please provide us with a bit of an update of the administrations timeline for the infrastructure package . The administrations timeline was in part based on the congressional timeline. And it was anticipated that Third Quarter of this year would probably be a time that both house and senate will be able to pick up this proposal. In the interim, obviously the president is very impatient, and he has asked that principles be released around the latter part of may. The principles for the Infrastructure Project should be coming out shortly. Well talk also about the way the funds are distributed, and the current Formula Program seems to be working, people agree. Is that your thought as well, that would be the right way to go . We have certainly talked a great deal about formula funding. Thats certainly been one way in which the various demands and requirements of members of congress are addressed. So we are still talking about that as well. And given your existing authorities, could you talk a little bit about your vision to streamline the regulatory process to accelerate the delivery of some of these projects . All of us care about the environment. And we care about all construction projects, and that they should be conducted in a way that is responsible. But as we examine the permitting part of construction projects, we find that sometimes there are many times there are duplicative and redundant requirements which impede and slow down the approvals for a construction project. So were looking at those redundancies and seeing whether there are some ways, sometimes, when it would be appropriate to do things concurrently as well and not so much sequentially. Those are a couple of examples of the things were looking at. Thank you, madam secretary. Senator carper. Thanks so much, mr. Chairman. When you were good enough to visit with me, i mentioned one of my core principles, that is, things worth having, theyre worth paying for. When i was governor of delaware, i took the lead, we did huge investments from 93 to 2001, we also paid for them. We did it through user fees and a variety of other ways we didnt just charge more things on the States Credit card. I mentioned a couple of different things. User fees, base load for transportation funding for roads, highways, and bridges has been user fees for as long i can remember. 65 of the funding for federal highway programs today comes from gas tax. Its about 18 cents a gallon. We have not raised it for 23, 24 years. 25 of the moneys come from diesel tax. We have not raised that, again, for 23, 24 years. We proposed to in bowles simpson, as part of an Overall Program to reduce deficits, we proposed raising gas and diesel tax and index it Going Forward. That was made part of bowles simpson, not enacted by the congress. In states across the country where the states have gone like 20 states have gone ahead and raised their user fees. Amazingly, folks, the legislators who voted to do that got reelected. 90 of democrats got reelected. 95 of the republicans. People say you cant vote to do this stuff and get reelected. Thats not really true. You can be the right thing and actually be rewarded by your voters. We do a lot of tolling in delaware, if youve been up 95, you know what i mean, we apologize for that. But if you combine tolling with ez pass and similar kinds of programs, you make it kind of easy, people go through the toll, highway speed, and the charge ends up on their credit cards. You mentioned to me when we talked earlier, and again today, about the availability of us to harness, if youre until tin th private sector, for Public Private partnerships. New construction, tolling works in some places, densely Populated Areas along the coast, maybe it works better than in the middle part of our country, but the idea of tying in tolling on new construction and using that to harness and incent the private sector to be involved, i think is a good idea. Other people smarter than me think it is as well. The Trucking Industry doesnt like tolling on existing highways, but theyre willing to support tolling on new highways. But the idea of those who say were going to so have this problem on the funding side just by doing 3p, Public Private partnerships, in the last 20, 30 years, they have been 30 Public Private partnerships, 30. Some of them are pretty big. But thats out of tens of thousands of projects. In a lot of parts of our country it doesnt work. In texas and 35 states, theyve never had a public prior to partnership. Texas, they voted to take it off the plate and say off the table. So its not a panacea. Its part of what can be done. Oregon has its road user charge thing that theyve been doing for ten years. 10,000 vehicles are covered. Weve got to move, i think weve got to move quickly, combined road user charge theyre doing in oregon with highway speed ez pass. I called it rock and roll. If we can develop vehicles, cars, trucks, and advance that can drive to from the atlantic to the Pacific Ocean without a driver, we ought to be able to come up with a way thats respective of privacy. Im happy to go out on the limb and say, we need an all of the above approach. Its no silver bullet. A lot of silver bbs, some of them that i just mentioned are bigger than others. Talk to us about funding these projects, please. Senator, youre exactly right. Number one its rare that im exactly right. These projects, as valuable as they are, as important as they are to our country, yes, they have to be paid for. The question is who pays for it. Thats the difficult part. In the past there have been government funding and in this particular environment, 100 government funding is probably not realistic, given the tremendous amount of resources that we need to devote. Therefore, as you mentioned, as cars become more fuel efficient, the gas tax per vehicle might be has been decreasing. And the integrity of the Highway Trust Fund is very important. And distributions have now exceeded inflows. So the good news is nothing is off the table. And were looking at all of these things, Public Private partnerships are one way in which financing of needed Infrastructure Projects can occur. Were looking we are also hoping to have through that vehicle, through that channel, a more innovative, creative ways of financing. But nothing is off the table. Thank you. My colleagues, our president put on the table a week or two ago the idea of user fees, raising user fees, something that senator inhofe and i have been a big proponent of a long time. I immediately put out a press release supporting what he was doing. Then it was taken off the table. We need president ial leadership. As governor i tried to lead on these things. Jim as mayor tried to leave on issues like that, we have other recovering governors here at the table, as you know. We need the president ial leadership. If the president will lead on this and making some tough choices and not pull them off the table, we can get something done. Thank you so much. Thank you, senator carper. Senator inhofe. Let me remind senator carper, i can remember when i first was involved, i was in the house at that time, back in 1987, my first year here, at that time, madam secretary, the biggest problem we had with the Highway Trust Fund is we had too much surplus in it. And of course those days are long gone. At that time, i had said, if we would we better prepare now and put in an escalation clause so you have it indexed in some ways. This is something that very likely is going to be looked at. You know, at the end of the obama administration, madam secretary, the United States department of transportation so solicited applications for the fast lane grants. I know there are two of those. That was established in the fast act. And i know that we have a couple of them in my state of oklahoma. People are always calling me up and asking me the question im about to ask you, do you have an update as to that you can provide to us as to when we can expect some kind of an announcement concerning those grants . The administration came in, as you well know, less than three months ago. So we are in the process of evaluating those. Some, i hope, pretty soon, we will be releasing a tranche. Then we will be taking a look at the others. Were very much aware of the needs of Rural America. So we are reviewing all this was with an eye toward in particular the needs of Rural America. Thank you. And i think the administration has made it very clear and youve made it very clear that were looking at the streamlining that was put together in both the 21 bill and the fast act. And that was a time, during that time frame, i chair the committee, and senator boxer was the Ranking Member, and we worked together on these streamlining things. There are a lot of times when she would put her foot down. We always ended up realizing that you have to compromise when you put one of these things together. And i say that because one of the concerns i have is that some of the previous streamlining that weve achieved might not have been implemented to the truest intent of congress. For example, we provided a categorical exclusion for projects in the existing operation of rightofway. However the implementation of this provision still requires paperwork from our state dots and approval of federal highways that a project can receive a categorical exclusion. Is the department reviewing guidance issued by the Previous Administration to ensure that our streamlining efforts are being implemented to their fullest . And everyone out there who is a contractor, who is anticipating participating in what we are going to be doing, you and us in concert, thats right interested in the streamlining, because you can get so many more miles out of it. And that was an agreement from the democrats and the republicans. What you just mentioned is very important in terms of helping the permitting process along the categorical exemptions. This effort has started. Were taking a renewed look at it and making sure that indeed we are implementing it in the speed and in the way that the act requires. Thats music to my ears and the ears of a lot of other people who have already started participating. Even though projects right now are not ongoing from the fast act itself, they know that what our intent was, and our intent was clearly to get as many miles out of that as possible. Now, yesterday i chaired the transportation infrastructure subcommittee. We looked at Innovative Solutions for Public Sector funding and private sector financing of local witnesses talking about the different initiatives that taking to prioritize infrastructure including working with the private sector. But there was an overall agreement that the federal government must remain the lead in our Infrastructure Investment s that view of the administration as well . We are certainly very concerned about this and taking initiative on it. I think were very excited about the prospect. Ive had a lot of Democrat Friends that have different philosophies on other issues and saying this is what were supposed to be doing. There is no worn out document. It is called a constitution. Were supposed to be doing two thive things here. We look forward to working with you in a very effective way. Thank you. Senator booker . Thank you, mr. Chairman. Thank you, secretary chao for come brg us. Wanlt to bring attention to the gratitude for the letter that senator schumer and senator menendez and myself sent you regarding the gateway project and the real crisis we have. Your letter which i have here was just really gracious. You put forth hone that youre willing to visit. En that is really assuring. It is also nice to hear you travel on amtrak through the gateway area as well. Ive been delayed as well. Yes. Well, thats really the crisis we have right now. As you probably heard, we now have delays that are stranding literally hundreds of thousands of americans. Its become in one of the planet earths most economically productive region, literal lit busiest River Crossing in all of north america. We have a system of rail that has hit a choke point. It is so bad now that it is costing our region millions of dollars in productivity. Every week and the outrage of people. People in new jersey are talking about moving into new york because of the unreliability of service. People calling my office, writing my office about lost time with familiar lishgs not able to take the children to school. Its really a crisis throughout our area. The biggest calls that senator menendez and i gheet our office, one of the biggest reasons is the failing infrastructure that we have right now. Its outrage dwlaus in the 1960s you could move along the rail faster than right now. Thats how efficient this rail line was back then. So with commuters facing delays that are unconscienceable with crews desperately trying to fix this without causing even more delays, we have what i consider the were teetering on the edge of traffic armageddon in the northeast region f we dont begin work on the new tunnels, what that is going to mean is were going have to take one of the over 100 year tunnels this is a tour that i want to take you. I went in the tunnels in a glass car. Can you see the physical damage done by Hurricane Sandy still. If we have to pull one tunnel out of service, that will literally cause a traffic armageddon in the region. Thats the level of urgency that we have before us. So i guess the first sort of question i have is, is given sort whast failure of one of the tunnels would mean, im sure, again, i hate to do this to you when youve only been in office three months, but are you all taking this part of at least with the last administration called the greatest transportation crisis in the country, are you looking at this and figuring whout what a straty to prevent the crippling of that region . Absolutely. I grew up in new york. I know that area very well. The president is a new yorker. He understands the issue there very well. We have kept a close eye on this and the safety inspectors have been down at gateway and that whole tunnel area. And we just recently sent someone there again to make sure that oversight and safety responsibilities is totally focused on the tunnel there. Thats not to say that its unsafe. Let me also bring to your attention i want to work with you on this, the governance structure. The governance structure is quite complicated as you well know. The department of transportation has one sneet a governmental local, state, federal governance structure in which the governors of both states, new york and new jersey are involved. So the governance structure is something that is one that dictates all of the parties involved need to work on this. And so id like to work with you on that. Gateway is a absolute priority. Ive been a passenger myself. As mentioned, ive been delayed. I know the new york area very well. The president is a new yorker. So there is a priority. I look forward to working with you. My time expired. I look forward to talking about the government structure, two federal positions at the dement and amtrak. Amtrak and i just im sorry. The amtrak is such a critical agent as well. I hope we can have conversations about amtrak funding. The amtrak rail between boston and washington, d. C. , more people travel on rail than they do on plane. And thats another area where theres continuing degradation of services. We have a lot to talk about. I know youre a new yorker. Kentucky. Just as a last point, i met several times with the amtrak board and also with the president on this particular issue. Thank you, senator. Thank you, madam. Senator fisher. Thank you chao, thank you for your testifying to day and discussing the importance of infrastructure to our economy. List appreciate you highlighting some of the proposals the department of transportation is reviewing to include in this infrastructure package. I look forward to working with the administration in order tone hans our mutual priorities for the benefit of all american families. As you know, our National Infrastructure is in a critical condition. The most recent report card from the American Society of Civil Engineers rated the United States infrastructure as a d plus. This is unacceptable. Members of Congress Must Work Together on a common sense solution to keep our country moving. The fast act, it was an important first step to address our infrastructure needs. And it was first long term highway bill in more than a decade. However, as you know, the work is not done. Thats why i happen to have introduced a bill that is going to look at solving two of the major challenges facing our transportation system. The first is that near term solvency of the highway trust funneled, the second is the lack of flexibility for states and starting and finishing major transportation Infrastructure Projects. As we know, any infrastructure package must recognize that states know theyre own Transportation Needs best not the federal government. Programs like the National Freight program work for all states without leaving any behind. The National Freight policy has also robust bipartisan support. Expanding this Freight Program should be an idea that is on the table when we discuss infrastructure. I would stress that as we think about the infrastructure package, we should avoid falling into the trap of a stimulus style spending. Finally, any infrastructure package must address how unintended regulatory consequences can impact our freight network. Whether its a delay to a critical highway project or a new requirement that alters the supply chain, burdensome delays can hinder progress. Will you commit to working closely with my colleagues and i on priorities like these as the administration and congress continue developing a National Infrastructure policy . Yes, of course. As we discussed, states are facing real challenges regarding Infrastructure Project completion due to those excessive procedural costs and delays in the permitting process. Earlier, you called that the front end part. In response to the permitting delays, the nebraska unanimously passed legislation to allow the Nebraska Department of roads to pursue assumption of the permitting process. The Nebraska Department of roads sent a letter to the federal Highway Administration to begin the implementation of this program and i understand it could take up to about 18 months. So madam seconretary, zrou any updates on that program that can you provide me right now . Actually, we think nebraska has done very well. And your leadership on this issue is very much appreciated. The governor acted in march. Your legislature acted very quickly thereafter. And then the state department of transportation, so grofrn, state department of transportation. The state department of transportation issued the letter on may 7th. So we know this issue. Were tracking it. We understand it is a concern of yours. Were going to pay attention. Okay. Thank you very much. Also the fast act requires the department of transportation to develop a National Freight Strategic Plan to assess that National Freight network and help to plan for the future growth in that movement of freight. States are required to develop their own freight plans and that is happening. Wv within nebraska and our department of roads, theyre ensuring we do have a comprehensive plan in the state of nebraska. Can you elaborate on the importance of ensuring that we do have a thorough strategy to address the growing movement of freight across our country . Freight is a very important part of our overall commerce. And it helps to keep our economy vibrant and our workforce prosperous. So we want to do everything we can to facilitate commerce so that brings greater vitality and prosperity to our country. Of course, there are other sometimes concerns expressed by other groups so we want to work with all these groups but theres no understating the importance of freight to the Economic Vitality of our country. The commerce committee, senator booker is chairman and i work in the subcommittee and we look at the connection between the different modes of transportation whether it is the roads, ports, rail, trucking. So i look forward to working with you in these issues as we look at how were going to make sure that in a modal connection is also put together. Thank you. One of the questions that keeps arising is when the add smgs going to present an infrastructure plan and the president talked about possibly accelerating it and others have been discussing about moving further back in the year. Zrou a sense now of when well have a detailed proposal from the administration . The package will come out later in the year and probably in the Third Quarter. So one thing that the president so the principles in may and details Third Quarter. Okay, thank you. One thing that president had said and some interview was that he recognized that publicprivate partnerships didnt work in a lot of situations and sometimes were more expensive. Certainly we have found in the west that often toll roads end up taking a lot more money out of peoples pockets than those public financing. Are you looking at the details of really how to get the most bang for the buck in term of dollars spent . I dont mean just total dollars but total investment by citizens f you have to pay for a road three times over or 30 years of willing to to get a 15 or 20 return for middleman that, search more expensive than if we just financed it directly. You are taking a look at how to get the most Cost Effective projects done . One of the things one of the reasons why the proposal is taking some time as well is that we we in the executive branch and all of our departments and at the white house are engaged in consulting with members of congress, with other stake holders, outside our government tone sure that mistakes of the past are not repeated. There are some very smart people at the white house who are former Investment Bankers whoness a great deal about financing. They have been giving their own expertise. But also listening to other people as well. So on your point about getting most out of the bang for the dollar, that was certainly a reasonable and logical thing to do. We hope that were doing that adequately, yes. Well, i would really encourage that. Sometimes when i listen to the conversation it sounds like how do we minimize the public dollars . Talk about leverage and so forth. But sometime that involves tolling that takes a tremendous amount out of working americans pockets than if we just finance something directly. And the president s comments seem to reflect that recently. I was heartened by. That twint ma that. Were very open minded. It is a large process under way with members of congress as well. So it will be in collaboration with the congress. As i go from community to community and hold a town hall in every county in oregon every year and before hand i meet with the county and local officials and the most common commentary on infrastructure is not roads and bridges. It is water, clean water supply and waste water treatment. And that is because you have changing federal standards. You have old fran structure wearing out and new demands for growing either growing commercial sector or growing residential sector. Will water projects be a big piece of an infrastructure package . The short answer is yes. Great. And you are familiar with the wifia program . You mentioned tifia. It is the parallel on the watders side. Yes. Might than a piece of how we tackle that . You have made an excellent suggestion tlachlt is not within my lane. But thats why we 16 different cabinet secretaries and agency heads around the Interagency Task force to address issues like where there are infrastructure funding programs in different departments and how do we Work Together. But water is certainly a major topic within the infrastructure proposal. The president said well have two simple rules on the massive rebuilding effort by america and hire american. You are supportive of those principles . Is the president s agenda, yes. Thank you. Im pleased to hear that. With the import of steel, there is a lot of support for making sure we keep that principle and cheering the president on on that topic. I want to turn to the issue of the cafe standards and the conversation about loosening those. I see my time up is. So maybe youre spared this question. Perhaps ill follow up on it later. But my concern, is and ill state it this way, this we dont stay on the cutting edge of innovation, it makes it harder for the products to be sold arent world and to keep the innovation here in america. And the rest of the world is pushing hard for it on this issue of more efficiency strategies for transportation and i hope we will too. Thank you. Thank you, senator. Thank you, mr. Chairman. Good morning, secretary chao. As a kentuckian, i suspect that you recognize the need to balance both the urban and rural states needs when it comes to infrastructure repair develop ment and so forth. Im concerned by the president s proposed as we call it the skinny budget which provide nod funding for tiger grants for fiscal year 2018. However, many states including south dakota have benefitted from tiger Grant Programs and weve received funds for innovative transportation projects. Just an example would be in 2016 the rose bud seau tribe which is in a rural area, received a 14 million tiger grant for a highway project. It was an Improvement Project and in 2015 we received a 6 million grant for a freight expansion project. The projects are difficult to funneled through other federal funding sources. But they really are important to job creation, particularly in rural areas. And theyre also important for transportation, safety and efficiency and for the Economic Growth of rural states. Just concerned, can you share us with a little bit about what you see as the future of the tiger Grant Program . What are your thoughts general for the lack of funding for tiger grants . I know how popular tiger grants are with members of congress. This is a first budget done by a new administration. And the omb director had not been onboard yet. So this particular issue by the tiger grants is something that were discussing. The thought was that there be Going Forward that there be a more wholistic approach to infrastructure and to perhaps these tiger grants will be recast in some future in some way in the future. I think thats what were still talking about. Im glad to hear. That because a lot of these tiger grants, theyre stall in nature compared to a lot of the costs involved and some of the more urban areas where there is significantly greater cost for any project to be completed. And this particular case these tiger grants really are very well appreciated and theyre highly competitive. So only the best of projects are really funded with these tiger grants themselves. Im glad to hear its a work in progress and we would love to provide additional input and advice as you come to making the decisions in this particular case. It is a very good series of projects and weve seen some real benefits within our rural states w that, thats all that i have for you. One of the advantages tiger grants is it helps leverage other moneys. One of the principles of the administration is we want to leverage them in from other sources. Absolutely. It impacts rural areas that are able to obtain federal dollars in this process but in auflt cases, youre finding that there is a partnership provided because in a lot of cases it is Economic Development plan in an area where can you either get additional commodities to market or in some cases youre improving highways that we simply didnt have the resources to improve and some very rural areas. And particularly for our nativeamerican populations and in rural areas, some of most some of the poorest counties in the entire United States. Wane that, i yield back. Senator duckworth. I want to thank the chair for convening to days meeting and thank secretary chao in participating in this important kofgs. Thank you to the bipartisan leadership of this committee, Congress Passed the fast act in 2015. Several provisions of the law are still making their way through your agency. I look forward to working with others who ensure the law is fully implemented. More than anything else, states and municipalities count on multiyear authorization to provide communities with the certainty needed to plan infectively and implement critical fran structure project. Do you agree that the fast act has been effective in providing local Decision Makers with funding certainty for planning surprises . Senator, i think if youre referring to what i think youre referring, to you and i talked about the Regional Planning districts. And senator durbin weighed in with you as well. So were looking at the whole planning part of that. Were making progress into changing it the way that i think you will like. I was referring to the fast act and the fast lane Grant Programs to know that you have the certainty of those dollars coming in those grant dollars coming in allows local municipalities to plan out into the future. And its a great tool for a mun is talt in figuring out what theyre going to do next. Thank you. Under the bipartisan framework of the fast act, the fast lane Grant Program was designed to address products of regional and national projects. Im asked about the 75th street corridor Improvement Project. Its a component project of the create program, a unique publicpartnership. All seven class one railroads agree that project will improve regional freight shipping and benefit the entire freight network. Stai stake holers are confident in the national significance, state and local Funds Combined with significant rail Company Dollar are waiting patiently for fast lane funding to advance this critical project. Again let me remind i want to say that it takes 48 hours to get freight from california to chicago. And it takes an additional 30 plus hours just to get from one side of chicago to the other. And thats what this project will address. Can we expect u. S. Dot to move in finalizing fast lane grant splicti applications and not waste valuable time and resources reopening the application process . We have just been in office for relatively short time. I think its i understand what you are saying. We need to understand what the fast lane applications and grants are. Were working very hard to try to get them out as quickly as we can. Well probably do a first run and then for the remainder, were still going to go out with some applications for novo to see as we assess when what the criteria frorting on these fast lane loans grants. Really the sooner can you get them through the better. As i said this is holding autopsy a kbheup a commerce for the entire nation. Another linchpin freight project that is ripe for federal support through the fast lane program is replacement of the 127yearold merchants bridge. This project is critical to the st. Louis region and represents another critical step towards improving our National Freight network. As you know, illinoiss received over 327 million in tiger grant funding. I was pleased to hear about the discussion we just had in committee. Theyre juupgrading kpooe key components of the infr infrastructure. The skinny budget also cuts investmentes in new trans it products like the ctas red line extension to the 130th street, ends amtrak Long Haul Service and hamstringed air service. Were bracing for another blow to job creation efforts when the full fy18 budget is released. Can we expect more cuts for prapgs programs or will the budge more closely reflect the promise the president made to invest in infrastructure . Number one, i dont know whats in the budget that will be coming back. It will not be released until may 23rd. I understand how popular these tiger grants are and were hoping to work in some way with the Infrastructure Project to find a more wholistic way in which to provide the needs for the states and communities. So the money that will be taken out hopefully will be put back in the infrom structure project. But i will not know that until may 23rd when released. Were anxious and people across illinois are, ive heard from them and they would like to keep the dollars and the fast Grant Program. I yield back. Thank you very much. Thank you, mr. Chairman. Thank you madam secretary for joining us today. Because of iowas location and the center of the country, our interstate routes handle a lot of Cross Country freight. And for a lot of this freight iowa is not the origination and its not the final destination. R. Either. Its simply just passes through iowa. And this path through traffic takes a major toll on our roads and, of course, drives up the nate Maintenance Cost for iowa dot. Nationally, iowa ranks fife njt number of bridges and 12th in the miles of roadway yet the state ranks 30th in population and 23 understood overall land area. Central states are responsible for supporting the infrastructure that moves country Cross Country freight. Do you think point is something that congress should take into consideration when working on future transportation bills and if so in what ways . Clearly this is a very important issue. And internally, we are discussing the very same issues that you are bringing up here. Very good. It is important. I know a number of other senators have mentioned, of course, the rural areas and how important it is that funding mechanisms are reflective of those situations on the ground. And i did see some news recently that you had attended the u. S. Chamber. That event you mention projects that cant Access Private sector funding and that there will be a few special projects that will likely be identified and funded directly. They can significantly increase gdp growth or lift the american spirit. What types prove jekts might these be . Well not specify any list of projects or anything like that. But my remarks wanted to confirm and to reassure was that this administration understands the needs of Rural America. And as we go forward, we need to find some way to address the needs of Rural America in a way with other Financing Mechanism thats may not work and may work for urban areas but not for rural areas. I do hope that you reach out to rural legislators, members of congress and receive input from our offices as well. We would love to assist in any way that we can to help our rural areas. As you mentioned in your testimony, nearly 73 of our countrys public roads are located in rural settings with populations under 5,000 people. I live on a gravel road out side of red oak, iowa. And red soak a lot like the rest of Rural America. We have about 5700 people that live in red oak. And our network of farm to market roads and bridges, they are an intergral link for our food supply chain. I heard from farmers all across the state about their declining state of repair. And so we do have about 4900 bridge thats are considered structurally deficient. And what will you do as secretary to ensure funding and attention are dedicated to these rural projects . And are there any specific Guiding Principles that you would operate under . Thats why the president made infrastructure repair, rebuild and refurbish ment such a priority. Let me also point out, structurally deficiency does not mean the bridge is unsafe. What structurally deficient means is that there will be more president elect inspections. So i do want to make that clarification. Thank you very much. Thank you, mr. Chairman. Thank you, senator. Senator . Thank you. Thank you for being here. On friday senator schumer and i wrote you to raise the issue of funding for maintenance backlog that exists for amtrak. There have been a significant infrastructure issues at penn station and new york over the past few months. Because commuter trains use amtrak rails that, impacted amtrak and the Long Island Railroad and the new Jersey Transit as well. Last month there were dettwo derail ments and there was significant hardship for new yorkers who rely on the Long Island Railroad to travel between long island and new york city. These disruptions have become unbearable for manufacture my constituents and boils down to the fact that we have not done a good job in maintaining our fran structure over past several decades. What assistance can you and the department of transportation provide to amtrak to help them to move forward quickly with the repair work at penn station and reduce further impacts to riders . We have actually met with amtrak, with the board and also with the president on this issue. Its a very complicated real estate play, if i may, play being movements. Because pen stait station n sta right below Madison Square garden. There is a station that is being contemplated. So it is a very complex real estate. But nevertheless, i understand your concerns. Im concerned about it. I had a discussion about gateway and the tunnel there and the condition thereof and how thats also delaying amtrak. I look forward to working with you. Do you think the plan will include additional funding for Passenger Rail and the gateway project . There will not be a specific list of projects. The infrastructure proposal is being put together with a much more greater view of principles and given the decentralized nature of our transportation infrastructure overall, there will be seeding of federal dollars that hopefully will leverage other moneys from perhaps a private sector, state and local, and two the 1 trillion. State and local i take back, but to the 1 trillion. But we found when there is federal government funding, that displaces state and local funds as well. So we believe the infrastructure concerns and needs are so great that all entities need to collaborate. Yeah. I agree. Concerning back to the trains issue. Congress has extended a deadline for railroads to implement the positive train control in the fast act. Implementing positive train control is stoenl preventing future derailments due to operator error. What is the current status of the departments efforts to implement positive train control requirements and will you ensure that congressionally enacted deadlines republican forced . Absolutely. We just got the omnibus passed thanks to the congress and we now have the money. Well be beginning to give them out. Okay. My last question is we have another issue in new york about the transport of crude oil by rail. Its a growing concern to a lot of our communities and my state, particularly along the hudson river and cities upstate. During your confirmation hearing you were asked whether you would support on going work about it department of Transportation Energy on the volatility of crude oil. You could not comment until you had been confirmed and had an opportunity to be briefed. You have had a chance to be briefed on this topic and will you support continued work by the department to address the safety risks of crude Oil Transport by rail in a meaningful way through regulation . Number one, safety is always number one. Its my top priority. Number, two i have been briefed on it. Its a complicated issue. We are not quite sure thou go forward it with yet. But definitely since you brought it up again, we will go back and not that we have not been paying attention, but that we will give it a renewed effort again. Thank you. And then just to comment from the last exchange was with senator duckworth and with senator from iowa. I really appreciate this interest in Rural America and we have huge issues in new york as you know. A lot of rural areas. And not all projects are economic. So you do need federal investment. But there are some impediments will cities. They cant do p3s, for example in, new york city. Its not allowed by new york state law. And so sometimes youll need federal funding as well even for projects in urban areas because they dont have the facilities to do all things that are possible. Thank you, madam secretary. Thank you for bringing up that. Thank you, senator. Senator shelby . Thank you, mr. Chairman. Of course, everybody can tell im the Junior Member of this committee. And i came on this committee for one reason. I knew how important the infrastructure challenge was in this country and in this congress. We all have our interests state by state, whether its iowa, whether its my state of alabama and everything. We know that a lot of our infrastructure is crumbling. We know a lot of our ports are inadequate. The question is, i appreciate your support to publish service. I think you bring a different wrinkle to the transportation challenges as secretary. But weve got to create a Critical Mass here. This year if, there is any way to do it. Its not going to be easy. And we have to look at the macro challenge that we have. And how are we going to do it . This committee will play a big role. Obviously, the finance committee will play a role. The Appropriation Committee will play a role ultimately. But if were going to grow our economy and create jobs, i think the president is right on this, weve got to address our infrastructure. I do believe and we talked about all this today some, but it is complex and im sure its not all worked out yet. Theres got to be a combination of other things. But there is so much more money in the private sector. I would be interested im not going to zhu today, specifically, but how do we leverage the private sector . There are a lot of Creative Minds in this country in the finance area. How do we do this . We do it everywhere else. If we can do it in the transportation sector, can you drive around or you can ride a train, can you do this and see or can you go to a port and see what good infrastructure does and what it attracts in the private sector. Weve got to do this. You know, 60 years ago we started the interstate highway system. God knows that was a monumental thing. But we cant rest on. That a lot of it is crumbling, as you know. Our population is growing. Im looking at the senator from california. Most popular state. And the biggest challenge for infrastructure. But all of us, my state is 23rd, five million people. And we have those same problems everywhere. I couldnt agree with you more. And the president does as well. And thank you for bringing up the infrastructure creates good paying jobs as well. Because thats another topic that the president constantly talks about and is very concerned with as well. Publicprivate partnerships is not one of doing things but its it is a method by which the private sector would be allowed to participate in Public Sector financing. As we have just heard, new york state does not allow publicprivate partnerships. And so huge swaths of the private sector are able to invest in a critical part of our country by people who i might say are actual lit most prosperous of all in one of the states to do so. So we also need to be insentivizing and discouraging we need to be insentivizing state and local entities to engage more in the to engage mort private sector. To not discriminate against the private sector in their desire to help finance where they can the infrastructure. There is so much capital looking go looking for good investment. It could be a solid investment for a long time. And a lot of our endowments and universities looking for a good return on their money. Look at the savings tokts day. We have a lot of money in this country. But we got to marshal it and put it together. That is going to be one of our challenges. But we have to do it f we dont, were failing the american people, are we not . Absolutely. Thank you. Thank you, mr. Chairman. Thank you, senator. Senator hair snis. Thank you for being here. I have a few questions that relate to california specifically. I know youre familiar with the transportation challenge thats california faces and the actions were taking to address those challenges. The subcommittee met yesterday and heard about how californians are investing in substantial amounts of their own money in the states transportation future. And we need federal support to continue. The mayor of los angeles was here yesterday. Twinlt xb i want to ask you about the departments involvement. One is the cal tranproject. This is widely supported. I has already raised 1. 3 billion in matching funds. It was highly rated by your department and is ready to Start Construction immediately. In fiscal year 2017, the spending bill that the president just signed into law Congress Passed 100 million for this project. The law, however, requires that department of transportation enlt near a full Funding Grant agreement for projects to receive the funding. Now all that is need ford construction to start and for 10,000 jobs that will be part of this project to actually be hired and to be filled sfort department to execute the ffga as its known. As you know, the contract to begin construction expires on june 30th. So in a very short period of time, senator feinstein and i sent you a letter last week urging that we execute the agreement so the project can begin. The project could be in jeopardy if the full Funding Grant agreement is not executed very soon. Can you give me a status on that . Weve been we have been very much focused on cal tran. So please let me assure that you this is a subject that we are we pay a great deal after tension to. I have spoken to speaker pelosi. 50 starts of the new budget goes to california. Yeah. So theres a lot of money going to california. There are a number of projects there. The fiscal year 2017 budget gave about 100 million. That has helped. Going into fiscal year 2018, we hear rest of it. Its another 118. But california and in particular cal trains is not the only project that is wait norg monins money. So im about 107 million short. So the 100 million in fiscal year 2017, that can go out. I ive been given the money about it omnibus bill. And in 2018, fiscal year 2018, its 118 million. But the funding required is 225 million. So im about 105 million short. So does force. But the money from 2017 will go out. Okay. So then how do you recommend we address the deadline that we of june 30th in terms of we have a requirement that we get the full Funding Agreement by that date in order for the work to be done . Well, its a tall problem. I understand the deadline. But theres no funding. So thats a problem. How do you suggest we fix the sflob. I wish i knew. Weve been talking to governor i met with governor brown. So it is an issue. I think the california delegation needs to come together and discuss. There appears to be split opinions on this project as well. So you are saying that the department of transportation cannot issue the ffga . I can not issue it if the funding is not. There. Can you not issue it if the funding is not. There then how do we [ no audio ] we cant commit to the out year funding. How do we work on it together . And it is a big problem. We dont have the funding for it. So i would urge your department under your leadership to help us resol of this before june 30th. Because, again, were talking about thousands of jobs. I understand. And infrastructure concerns that california has around transportation. And then id also like to xbut west side purple line extension project in los angeles. Perhaps you talked to the mayor about. That they requested funding in this years report and seeking to enter an engineering phase. Can you commit this years xbroekt will follow the fast acts expectations and rate projects and recommended projects for funneleding . Are you familiar with that . I dont know. That im very familiar it with. The mayor and i talked about it. He needs 1. 3 billion in purple line funding. And i understand the significance of it. Its tied into the project that hes working on. But as of so we i said to him that i would look at it. But that is for outyears, thats not for 2017. Thats correct and is there any work question do to follow up on that . Im always willing and eager to work with you and your office. Ill let the mayor know what the prospect is. Thank you. I appreciate that. Senator . Thank you, mr. Chairman. And its nice to be here with you, secretary chao. Thank you for what youre doing and for coming before the committee. Id like to begin with just asking a commit ment as we all, have a appreciated commitment to work with my office on West Virginias last priority or our priority Infrastructure Projects. But the completion of quarter age. As you know, its the last bit left of the appalachian highway develop ment system thats been under construction for 52 years. So i just would hope that you all and you have been, the department in the past has and i would assume you would continue that commitment to finish that last little very difficult to build part of that system. I hope so. Good. That sounds good. On the king coal project, twinlt highlight the work that federal Highway Administration has dovenlt theyve been leading the way withdrawing together the core, the epa, fish and wildlife pront jekt and have been very responsive to state and local stake holders. Theyre moving forward on one stretch of the highway and the fhwa led by acting executive director Gloria Shepard was the most was very responsive on the need to coordinate environmental reviews. Its a very different project that basically is a coal project where at the end there will be a highways after the land is reclaimed. Its been a project thats been in the mix for a very long time and very stalled out. So were trying to find a way to when the mining is completed to have a paved ready state. And it would save private stake hoelt hold aernz sa stake holders and the private stake holders in terms of 110 million. Thats how much it should save on a five mile stretch. So i want to thank you. Your department in particular the fhwa for their work on. This thank you for that. This goes to the p3 project. Im not going to ask you to repeat. I know youve been asked about this a lot. And you have talked a lot about the possibilities and some of the drawbacks and so i would encourage you and as youre moving forward with this infrastructure package to look at more other creative p3 projects such as this king coal highway project as we are moving forward. So i dont really have a question. There i do have a question secondly because one of my biggest priorities and you and i talked about this is broadband deployment. Our state my state of West Virginia ranks 48th. Im on a bill that senator hatch has that senator earnst and senator fish rer on that would allow broadband deployment along existing rights of way on federal lands. Im curious to know is this part of the discussion in the infrastructure . You said principles will be coming out in the next several weeks. It seems to me this will be a great principle to include in this. Do you have any comments on that . I think the simple answer is yes. Yes. That is an area that weve discussed. And while the final principles has not set of principles have not been finalized for release that, san area that we talked extensively about. I was in a meeting yesterday and the highlight is on infrastructure and the package and the excitement of cities and businesses and administration and others. A question came up well, a request came up from three large cities. L. A. Is one of them. The mayor of l. A. Was there. Denver and nashville. And onest comments that they made was dont make the state the pass through for all the federal dollars. What is what is in the general scheme of things, how many of the dollars that come through on road issues does pass through the state i want i mean in our case, i would say its a great deal. A large percentage. 100 , to my understanding goes through the state and they allocate it. On a formula basis. So i would in that aspect, i disagree with the mayors of large cities africa a smaller state that we dont have the Critical Mass in any of our cities to be able to put together large projects. I think our state along with other stake holders and our state legislatures and our state dots and our infrastructure counsels and water and sue rer in good position tobz able to prioritize where projects because we dont want to put a dollar here, dollar here, dollar here. We want completed projects. Im sure you do too. Ill be interested to see how that debate goes forward. Its understandable that mayors hope the money goes directly to them. Right. I didnt blame them for that. But whatever is a will of congress and having the department distribute those funds is what well follow. But traditionally its been through the state . Right. Thank you. Senator whitehouse . Thank you, chairman. Secretary chao. Welcome. I hope that you see this committee as a resource for you under the leadership of the chairman. We did a number of big im going back in time. We did a number of big infrastructure bills. We did the last highway bill and a couple of other bills. Chairman grasso i think has the intention to have the Committee Work in just as powerful and bipartisan a way. Having had the pleasure of having chairman enhouse on my side and having the experience of not having him on my side, i can tell that you he is very powerful either way. And its been great when weve been able to Work Together. I think this committee provides that opportunity in the past under him and now under chairman baraso. One can foresee considerable tumult in washington. But in the quiet of our interest and infrastructure and you will kind considerable support. I hope you see us that way. And i hoped administration will not try to jam congress on an infrastructure bill but rather work in a bipartisan, bicam rechlt. Al way. Thank you to your first point. And second point, yes, of course, he would like to collaborate with congress. Without your cooperation, mr. Tl will be no bill. En that is one of the few vehicles in which we hope to have bipartisan cooperation. Good. And, of course, where private capital wants to come in, it has to be an investment and the investment has to have a return. En that means there has to be a revenue stream. And for a considerable amount of our infrastructure requirements, there is no revenue stream. And in many cases it is hard to figure out how to generate one. I was at the factory bridge in west warrick just a few days ago. And it was built in the 1950s. It needs to be rebuilt. Youre never going to put a toll bridge on it. Its not that big of a toll. Its not going to be that bijg f a bridge. You actually need real money to get those kinds of Infrastructure Projects done. So im sure im emphasizing with a lot of my colleagues said. But in addition to creative financing and regulatory elements, there has to be a strong core of real spending for those types of projects. Otherwise, they simply wont get done. I hope you understand and accept that. We do. Good. So the last thing ill mention is that as you may know, rhode island is a coastal state. Everybody lives within half an hour of the shore. We dont have a ton of coastal states here. But our Ranking Member sure is a coastal state. And on our side there are a bunch. I think senators are our two coastal republicans if im not mistaken. Coastal states are seeing a particular problem, particularly with the Sea Level Rise projections that noah and that state coastal officials are predicting. I think senator shelby would consider himself a coastal state as well. Sow would . Yes, sir. So he would. So we have some issues about this problem because the Sea Level Rise projections are accelerating fairly fast. In many cases local communities dont have the resources to do the planning and do the updating so that they can understand what the conditions are that they need to build to. Theres no point building to a set of conditions that are not going to be the case in 20 years. Not if youre building infrastructure. And one of the things that weve seen in rhode island at least is that fema mapping for flood risk is badly erroneous. And so one of the things that ill be pressing you all on and i hope my coastal colleagues will be able to do so in full bipartisan fashion is that as were investing in coastal infrastructure, we need to make sure that were investing in the planning and data so that we know to what conditions these things must be built. En that is often beyond the capability of the local community and to the extent that fema mapping is as erroneous in other places as it has proven to be in rhode island, then actually a lot of people are being misled about what the conditions are going to be. So just, if you could just, like, put an asterisk next to my comments and the take away being remember this coastal problem and trying to make sure that pal helps get the planning right so that the infrastructure is built efficiently and the way it needs to be and in a way that defends from the encroachment of seas and bays whose waters are measurably rising. Thank you very much. Im not aware of this issue, but i will certainly telling people one thing and it just isnt accurate. Thank you. Thank you, senator. Thank you so much. Thank you, madam secretary. Can you talk a little bit about transitoriented development and the role you feel thats going to play in the longterm Transportation Plan that you have for the country . I grew up in an urban area, so ive always used public transit, and i would expect to be very supportive of that as well. Ive also lived in a rural area in a rural state and they have different needs as well. But overall im very supportive of transit. So we senators schott and merkley made sure there was an act in terms of developing guidance on the development of a transitoriented Development Strategy for the country. Have you got any idea of what the status is of that provision in the law in terms of implementing a plan . I do not. And im remiss in that, but after this hearing, i will go immediately and find out. The issue of economy standards is very important to me as well. In 2007 i was the house author of the law to authorize the increase in the fuel economy standards of the vehicles which we drive in our country, and there is now a point in time where theres a reevaluation that is apparently going to take place of those regulations heading towards that goal of reaching 54. 5 miles per gallon by the year 2025. If we do that, then we back out 2 Million Barrels of oil a day that we import. Were still importing 3 Million Barrels of oil a day from opec, and so clearly thats the best way that we can use in order to back out that oil so that were not sending young men and women over to the middle east but rather to protect oil tankers coming into our country but rather we are ensuring that we are not consuming unnecessary oil in our country. Can you tell us what the status is at the department of transportati transportation . In 2011 when the initial rule was promulgated, there was supposed to be a midyear review. That midyear review, to my understanding, was accelerated, which is why we reinstated it again. So the department of transportation and epa are working on this, and we should be on target in terms of coming up with the midyear review by 2018. Do you think that its midterm review. Is it in americas best interest to try to meet that 54. 5 per gallon goal . It was tied mostly to National Security backing out that oil, creating an Energy Independence for our country. Do you have a general philosophy about how rapidly you would like to see a transformation of our automotive sector . I was deputy secretary of transportation in 1989 and i worked on the cafe issues back then and certainly those standards were much, much lower and weve certainly improved on them. Back then there was also a discussion about how to balance protection of our environment, increasing the fuel economy of automobiles, while not providing any dampening or hampering of Economic Growth. So i think those discussions are still ongoing. We of course all care about the environment. We want to do the right thing. What is reasonable, what is feasible, i think these are all discussions which we need to have with you and other members of the congress. The industry itself year after year has enjoyed historic increases in sales, and i think thats a reflection actually of how welcoming the public is to this automation, this cool factor thats being built into these vehicles, the additional fuel economy standards. In the elon musk review which i think every auto manufacturer is going to have to make in 2018 as he sells 400,000 all electric vehicles at 35,000 apiece, and i think we should ensure that that gets factored in very clearly into any reevaluation that takes place, because i think that is in and of itself going to trigger a game over for traditional ways of looking at Automotive Technology in our country. So we thank you for your service and i just want to say, mr. Chairman, to you and to the Ranking Member, and to the secretary, that im ready to go anywhere, any time to work on a bipartisan infrastructure bill. Im ready to work with anybody at any time. I think its absolutely imperative for our country that we have a bill that passes and passes this year and hopefully we can do so quickly. Thank you, mr. Chairman. Thank you. Thank you. Senator corkrin, any closing thoughts . Thanks for joining us today and for your responses to our questions and for your leadership. Mr. Chairman, id like to ask anonymous consent to submit a letter for the record, please. Without objection. When we met in my office earlier this month, we talked about a number of revenue options to actually pay for stuff, including transportation. One of the options that we mentioned then but didnt touch on it today was an idea that had a lot of support in the last congress, redeemed repatriation, 2 trillion of overseas profits by multinational companies. The idea was to deem it repay tree eighted sitting off shore, maybe tax at 15 , not 35 or 40 , and it would raise about 300 billion. Its a big onetime. Theres some who thought we could use that to funds transportation Going Forward. Actually, its a big onetime, but it is big. We have all these projects of national importance. Talked about going up to the east coast of new york city. When you come out of new york city, you got to go through these tunnels that are 100 years old. Ive been stuck in those tunnels, you probably have as well. Theres a tunnel that goes underbaltimounde under baltimore that was built in the civil war and i think could be funded by a big onetime like what were talking about. It couldnt be used to Fund Transportation Going Forward. I dont think its appropriate for lowering the Corporate Tax rate Going Forward because its a big onetime, its not something that could be in the base. But i wanted to mention that. Also youve indicated the administration wants to be especially helpful in direct funding to Rural Communities where they cant always have these Public Private partnerships and it may not work so well. I just ask you not to forget the urban areas and there are some urban areas where they dont have the money or the wherewithal to raise the money. A third of our states have a prohibition on Public Private partnerships. 35 states have never had not even one and i think texas just took the idea off the table. I ask dont forget those urban areas. I was shocked to learn this but 80 of the people in this country live within 62 miles of one of our coasts. Think about that. 80 of the people in this country. It doesnt mean we should forget the folks who live in between the coasts, but thats a lot of people and with a lot of Transportation Needs. I want to mention, the department of transportation apparently has delayed some important rules to require performance targets for our infrastructure, performance targets. I dont know if youve had a chance to get into this. We put in legislation, we said we want to fund what works. Right. In order to find out what works, we put in these performance targets to actually measure performance towards those targets. Vince lombardi, football coach of the great britaen bay packer. He used to say, unless youre keeping score, youre only practicing. I think the rules are now scheduled to be effective on may 20th. I think theyve been delayed twice already. I just wanted to ask you if you can commit today to allowing those rules to go forward and go into effect as scheduled. Again, theyve been delayed twice. Are you familiar with this . Im aware of the performance of the requirements for performance evaluations. Im not aware that the deadline is may 20th which is three days from now. Well follow up with qfrs questions for the record. Thank you. We think its a good idea, find out what works, do more of that. If you dont have Performance Measures, its hard to know. Finally, you mentioned three things you were going to focus on. One was safety. Tell us how the department is responding to safety crises on the roads today, including a rising number of pedestrian fatalities which is a cause of great concern. Give us a glimpse into what youre thinking of doing on the safety side, particularly on the Pedestrian Safety side. 40,000 people died on the roads, highways, bridges last year, its going up. When i was deputy secretary of transportation, the total fatalities on the highway was 51,000. When i came back in jurn anuary this year i was pleased that the number dropped down. Unfortunately, that number was increased again, 7 , 8 respectively, so we are very concerned about that. We have asked a number of the agencies that are involved, highways, to Work Together to see how we can why this is happening and find out what the root is and then we will have a clear course of action. I close with this, mr. Chairman, and madam secretary, if we have a good Performance Measures and one of those is very likely to include safety fatalities and that sort of thing. If we have good Performance Measures in place, well have an idea of which states are being more effective in reducing fatalities. The idea would be to look at those states, find out whats working, reduce the fatalities, do more of that. Thank you so much. Good luck. Were happy to be with you today. Thank you. Thank you, madam secretary. Were grateful you spent your time with us this morning. Thank you for the open answers youve given to each of the questions. Some of the other members of the committee may have some written questions that theyll submit but im very grateful for your testimony today. Thank you so much. With that, our hearing is adjourned. The split of the money. Its clear the administration is going to propose 200 billion, about 800 million from the private sector. Do you think the democrats will push to get that direct funding number of the share up from what you proposed . When i met with secretary chao, i shared with her what im sharing today at the hearing with respect to Public Private partnerships. I think theyre a good idea. We are doing our first one in delaware right now. Its not huge but its our first one. 35 states have never done one. A third of the states get Public Private partnerships including texas where theyve just taken the idea off the table. So the idea that somehow in a country where in the last 30 years weve done 30 Public Private partnerships were going to fund the lions share of roads, highways brid s bridges, were not going to do that. What i shared with the secretary here at the hearing, a whole list of potential options. I call it on all the above approach to fund roads, highways and bridges. Theres no silver bullet. There are a lot of silver bebes. Some are bigger than others. Public private partnerships are one of the bebes but theyre relatively smaller. Repatriation is a really big bb but its only one time. It could be for projects of national importance. Thank you. Do you have any concern with the administrations principles so far that theyve suggested as having funding already in place for states and that Public Private partnerships are priority and that its just picking winners from winners. One of the things theyve taken off the table, a surprise to me, especially if theyre interested in using federal dollars to Leverage Private dollars and other state and local dollars, tiger grants are a great example of how we use it. We use it in delaware. They provide a third or less of the cost of the project but they Leverage Private dollars and other state and local moneys. To take those grants off the table, i dont know if thats the direction they want to go. Secretary chao i think will be a great secretary of transportation. She must feel like shes drinking from a fire hose. I know i would be if i were in her shoes. I still feel that way on this committee. Well Learn Together as we go forward. There was talk today of recasting the tiger program. Is that something youve heard anything about or youre supportive about . All i know is what we saw for funding for 2018. I think they basically took the tiger grants off the table. Anyway, i thought this was a good conversation. Stay tuned. Thank you, senator. On capitol hill today more democrats are calling for the impeachment of donald trump. The hill writes that this follows news reports suggesting mr. Trump pressed the fbi to drop a probe into former National Security adviser michael flynn. Texas congressman al greene made his argument for im peoppeachme the house floor earlier today. Heres a look. Mr. Speaker, i rise today with a heavy heart. I rise today with a sense of responsibility and duty to the people who have elected me, a sense of duty to this country, a sense of duty to the constitution of the United States of america. I rise today, mr. Speaker, to call