[captions Copyright National cable satellite corp. 2016] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] next, a Senate Hearing on how federal laws can promote the development of new technology. And christopher hart, chair of the National Transportation safety board discusses self driving cars and recent train, metro, and airline accidents. After that, reaction to the Supreme Court decision overturning the texas abortion law. Now, a Senate Hearing examines how senate how federal laws can help testify before the Senate Transportation subcommittee. This is an hour 20 minutes. Sen. Fischer good morning. I am pleased to convene the subcommittee on surface transportation and margin marine infrastructure, safety, and security for todays hearing entitled how the internet of things can bring u. S. Transportation and infrastructure into the 21st century. This will examine how the internet of things can advance our nations transportation and infrastructure system. Americas Transportation Network is positioned to benefit from new developments in technology. For example, the internet of things offers ways to alleviate congestion, reduce cargo shipping delays at ports, and monitor rail and pipeline support safely. This growing interconnected network can inform policymakers on where to and limited resources in road and bridge maintenance. In march, senator broker and i joined other senators to introduce growing intervention in the internet of things, or the digit act. This Bipartisan Legislation builds on our resolution which passed the senate last year. It calls for a nationwide strategy to drive the internet of things. The digit act would convene a working group of private and Public Sector stakeholders to offer recommendations to congress. They would focus on how to plan for and encourage the growth of the internet of things. The bill would begin discussions on the future of the network, and ensure the United States is adopting policies that accelerate innovation and allow it to thrive. This could have a positive effect on transportation. For instance, Global Supply chains represent an opportunity to take advantage of the internet of things to grow exports and imports. In todays justintime shipping environment, time is money and efficiency is key. According to the u. S. Department of transportation, by 2045 freight volumes will increase by 45 . D. O. T. , in its beyond traffic report, found transportation delays have a high cost. Spends ane, nike extra 4 million per week in extra inventory to compensate for shipping delays. This same report found a weeklong disruption at our nations 2 largest ports, l. A. And long beach, would cost the economy 150 billion per day. Meanwhile, supply chains are changing rapidly in response to transportation delays and alternative options. For example, after 9 years, the 5. 4 billion panama canal expansion is expected to open this week. Following the projects completion, the panama canal will be able to process ships nearly three times as large as greaterand provide a connection between the east coast ports and asian export markets. A recent white paper by ch robinson and the Boston Consulting Group pointed out the canals expansion promises to reorient the landscape of the Logistics Industry and alter the decisionmaking calculus of shippers that the canal serves. Delays in our logistics chain raise costs for shippers, infrastructure operators, carriers, and consumers. By increasing conductivity and Realtime Data flows between transportationur network and its users will gain productivity. Infrastructure design, construction, maintenance, benefitty will also from improved data and connectivity. State and local highways face changes when allocating resources to an array of projects. For example, aecon established a selfmonitoring selfanalysis and reporting Technology System known as smart to remotely monitor bridges, dams, and transportation assets. Smart infrastructure seeks to use the internet of things to enhance the operating efficiencies of infrastructure and links in the lives of these critical assets. Realtime monitoring represents a critical and analytical cool analytic tool and can enable states and localities to expand highway dollars in a riskbased manner, thereby bolstering safety and infrastructure reliability. As part of the fast act, i worked with my colleagues on this committee to author a robust policy providing states with greater resources to designate critical urban and rural corridors. Congress also expanded the objectives of the Intelligent Transportation seeks toogram, which integrate technology, communications, and data into the Transportation Network to include enhancing our National Freight network. Senator booker and i have been working together to understand to better understand the internet of things and to educate our Senate Colleagues on them. I am pleased that we have an Exceptional Group of stakeholders appearing before the subcommittee. We are fortunate to have officials who are developing policy at the federal and local level. Im eager to hear how the private sector stakeholders are utilizing the internet, data, and technology to advance freight and passenger Transportation Networks. I would now like to invite my friend, senator cory booker, our Ranking Member for any , comments he may have. Sen. Booker thank you, chairwoman fischer. Put my opening remarks in the record. I am kind of geeking out about this meeting. I think it is tremendous you are here. Theres a lot going on in washington, laced with partisanship. This hearing right now, with my partner, on a lot of things that we have found more than i could have imagined. The chairwoman and i have found things to work on that are fourth facing to not only make the government more effective but to echo what was bipartisan work in the past. A great republican president , eisenhower, understood how to make the private sector there flourish. There has to be Public Private partnerships. One of the great connectivitys of the past was building roads and bridges to connect the country. We are in an entirely different era. Things i could not imagine what when i saw my father bring home the first vcr id ever seen. Now, we have more connected devices on the earth then we have people, and we are in the stone age of the internet of things. What excites me is i have a partner to my right that understands if we in government do not get our act together, we outi will we will miss on only helping the private sector flourish, but we will drag down the private sector, because we will have agencies in the government working in silos and tripping up innovation. I am excited about this panel, because you are on the cutting edge of a new world. A world for me, a guy from the innercity and represented it as mayor, i began to see how connectivity, innovation, technology can be a massively democratizing force that can create and expand opportunity in many ways in the same way that us building the interstate Highway Program or creating the transcontinental railroad. The engine was, by the way, built in new jersey. I want to get right to it. I want to thank you all for being here. A lot of things you will say is wisdom we have tried to put together in the digit act, that the senator and i have, together with two other colleagues in a bipartisan fashion. I want to say welcome to washington. I dont understand why the cameras on the other side of the capitol talking about a place on the other side of the world and not focusing on this. This is a panel that will talk about things that will change the life of every american in ways that they cannot imagine. Sen. Fischer thank you, senator booker. Dont you just love it when he geeks out . [laughter] sen. Fischer i am very excited to get started. With that, i would like to introduce the panel. We will begin with the honorable , the assistant secretary at the department of transportation. Welcome sir. If you would like to give your opening statement. Mr. Monje thank you. Chairman fisher, senator booker, members of the subcommittee thank you for , inviting me. We are at a point in history where data is as important as asphalt. The internet of things has a slash commute times, eliminate traffic accidents, reduce co2 emissions, and reshape communities for the better. We are seeing connected Traffic Signals that connect cars and pedestrians to improve safety. Applications that let commuters pick the most convenient way to get around. Sensors that help traffic engineers fix and attacked an d detect structural problems. Soon, we will see increased appointment of technologies that will help travelers make informed choices. Well see revolutionized logistics, including robotics, animation, and tuning. Most thrilling, Automated Vehicles hold a promise to reduce deadly crashes and reclaim millions of hours of lost time. The council of advisors on Technology Says the time regained from not driving could be 1. 2 trillion a year, not to mention the benefits of we claiming land from the parking spaces. The transformation will be driven by the private sector, and we are doing our part at the u. S. Dot by developing and regulating environments. By never wavering on our focus on security, safety, privacy, and equity. And by investing in research and tech deployments. At secretary foxxs direction, we are doing everything we can to remove regulatory obstacles and provide flexibility for innovation. Nhtsa is nitsa making clear to innovators how to seek redress from barriers. Invoking a framework for regulators to work together. And identifying regulatory tools. The Highway Administration is finalizing guidance to road planners. To have a legally and effectively install infrastructure equipment. The federal Transit Administration is reviewing rules to allow transit agencies to participate in the mobility on demand revolution. As the department enters this brave new world, we are combining the tools we have with the lessons we have learned, starting with a partnership and building on a legacy of transparency. We are working closely with the ftc and pursuing connected vehicles and a way that protects consumers from privacy risk and closely with the sec and we are working closely with the fcc in pursuing connected vehicles and a way that protects consumers from privacy risk and vehicles from hacking, tampering, or tracking. We are moving aggressively on a number of fronts to bolster Cyber Security. Ntsa has went across all four corners of the federal government to manage big data to protect the privacy and safety of users. We are also investing our dollars in a strategic way to find new research and Speed Technologies to market, and to spur the conversation on the future of mobility. The mobility on demand Program Includes an 8 million sandbox, which is going to help Public Transit agencies discover ways to partner with emerging service providers, whether that is carpooling, transit on demand, or ridesharing. Fhwa is piloting three vehicles in wyoming to improve Pedestrian Safety in new york city and test mobility apps in tampa. We developed the Freight Administration to develop how the transfer of cargo to los angeles and long beach. And last week, secretary foxx announced the winner of the smart city challenge. The National Competition to transform one midsize city using advanced data and technology. Columbus, ohio will receive 40 million from us, plus a whole lot of support from partners. The city will deploy electronic, self driving shuttles to connect residents to the b rt line. They will put sensors on the city fleet to improve safety. They will invest in truck platooning and make it easier for delivery vehicles to find parking. They are integrating transportation data with other parts of the city. Particularly Health Care Scheduling to help address high rates of infant mortality. 78 cities applied. Each created a blueprint for the future of transportation on their streets. The biggest lesson is that Technology Deployment is not an end to itself, but a means to build Strong Communities that create opportunities for all citizens. Thank you for the opportunity to discuss the departments visions. Thanks also for the subcommittees leadership in holding the committee and introducing legislation for speed planning for the internet of things. I am happy to answer questions you have. Sen. Fischer thank you. Next, we have missed seleta reynolds, the general manager of the Los Angeles Department of transportation. Welcome. Ms. Reynolds thank you. Good morning chairwoman fischer and Ranking Member booker for the opportunity to speak with you today. I am the general manager for the Los Angeles Department of transportation and the president of the National Transportation of city transportation officials. I would like to explain where we are, where we are going, and the challenges we face. The city of los angeles is investing millions of dollars to evolve a is investings millions of dollars to of all our reputation as the car capital of the world into the capital of one of the most modern, sophisticated Transportation Systems of the world. The technology doesnt just change our cities, it changes us as well. It is important to stay focused on people first if we want to get to the best and brightest outcomes possible. If we rely solely on the private side, those benefits may only land where they benefit the wealthiest. Our job is to make sure the rising tide lifts all boats. Back in 1984, when the los angeles hosted the olympics, the hottest gadget was a sony discman. We invested in signals that relied on all rhythms. To move people through our streets. More than any other city in the country. Today, we rely on painted signs and signals to speak to drivers. In the future, that information will go directly to the vehicles themselves. The digital interfaces between the citys infrastructure will improve the safe flow of people and goods, light and a heavy rail, and even a question rinse equestrians across the city. Los angeles is using apps to navigate the streets. Earlier we launched a go l. A. App that allows you to choose cheaper, faster, greener way to get to point a to point b. We give a level Playing Field in mo military marketplace and let the consumer make the choice about how they want to travel around our city. The next step is to youve that into a universal payment platform where people can actually make that choice, pay for that choice, and be on their way in the palm of their hand. We are launching electric vehicle car sharing in the heart of our city. Car sharing markets have involved in some areas, we are deliberately making the successful to those who stand to benefit the most. We are investing public dollars for private investment. City government has a role to play to ensure new services are understandable and accessible. We understand the needs of older adults, including those who do not have bank cards. We partner with groups to help navigate language and cultural barriers. We are preparing ondemand Public Transit and requesting funds to upgrade signals and streets. Two, for example, hold the signal at red if it detects a driver running the light, turn the signal dream for emergency vehicles, and alert the right speed for green wave. We are requesting a proposal for mobility hubs at transit stops to bring car share, bike share, and realtime transit information to travelers. Our interest is to use technology to treat people with hospitality. We want it to be a convener and not a splitter. Other technologies are also emerging in new and interesting ways. We are also outfitting city buses with wifi. Becoming safer and more convenient. Bicycles are being electrified and appified to become a more fun way to travel. Signals are becoming smarter to help Emergency Responders and transit be more efficient. I want to underscore that the technologies of today are not static. We do not want to become wedded 21 mode, pick winners or losers, or ignore real equity issues. This time of vehicles might reduce the number of human errors, but has the potential for increased traffic and emissions, on street congestion, and can be expensive. Technology says alternative fuels and shared mobility will change the framework. We hope to work closely with our partners at u. S. Dot to have a conversation about funding and direct aid to cities, realigned and flexible funding, requiring technology to be built into transportation at fundamental levels, and to pivot from expansion to modernization and management. So fixing it first and making infrastructure smarter rather than continuing to invest in expansion. Data sharing is key. Ongoing investment into mass transit, like high capacity rails. One of the most precious resources in cities will continue to be space and preparing the workforce. L. A. Is an exciting place to be. We know that great cities generate traffic, but traffic does not generate great cities. Technology has the power to help communities achieve their vision, taking back public space from congestion, traffic, and parking. I want to thank the Committee Members for the opportunity to testify. Our cities are changing, perhaps nowhere as quickly as los angeles, and we need help on funding and exploring ways to standardize the future. Sen. Fischer thank you. Next, i will go to mr. Doug davis, the Senior Vice President and general manager of the intel corporation. Welcome. Mr. Davis good morning, chairwoman fischer, Ranking Member booker, senator ayotte. I appreciate the opportunity to be able to testify this morning. As head of intels iot group, i am responsible for the companys iot strategy and underlying technologies. All of that includes transportation and automotive. Intel has been delivering integrated or embedded commuting for things for over 35 years. Investment, innovation, and standard leadership we have driven during that time provide foundational elements of that iot strategy. Intel defines iot as devices which are securely connected through the network to the datacenter cloud. And it is the data from these things that can be shared and analyzed to solve problems. In fact, we believe that security is the foundation of the internet of things. Our hardware and software are designed from the beginning to be secure. We built security and transistors, so the way we designed our chips. Additionally, we build security into the layers of software into these things, as well as the way that data is moved from things into the cloud. So we fully realize that safety and security are essential for the promise of the internet of things to be fulfilled. Transportation is one of the most promising sectors in iot. In fact, it is projected that global revenue from the transportation sector will reach 325 billion just by 2018. By converting vast amounts of data into meaningful, actionable intelligence, iot will help support solutions in terms of transportation safety, efficiency, mobility, and some of the infrastructure challenges. Indeed, innovation and the transportation sector is at the heart of the global race for iot leadership. And that race is really competitive. In the u. S. , we have self driving trials in germany, switzerland, china, japan, sweden, south korea, the netherlands, and in dubai. That is just a handful. Kind of a big handful. But this is a big deal for u. S. Technology leadership. Autonomous vehicles require highly advanced sensors to see the things around the car. A variety of technologies to enable collision avoidance. Vehicle in computing and capabilities to calculate those vehicle trajectories. And secure, highspeed cultural reliable ultr areliable connectivity back to the advanced cloud. These vehicles must become the ultimate learning machine. They will need to be able to make smarter and safer decisions than even the most skilled human driver. In fact, cars will become known as data centers on wheels. In order for this to occur, this technology will evolve at the pace of innovation. Because they will have vast Global Industry support and rapid marketplace adoption. Autonomous vehicles will also improve our efficiency and productivity, as i think has been mentioned a few times. The average American Commuter spends 38 hours stuck in traffic per year, which collectively costs the u. S. Economy about 121 billion per year, just wasted time and fuel. The Transportation Industry could see fuel reduction and the benefit of reducing harmful emissions. For the u. S. To lead the world and capture these economic benefits, the modernized transportation infrastructure, and connectivity that will be delivered, intel recommends policymakers collaborate with the hightech and Transportation Industries to develop an ambitious National Iot Strategy based on five principles. Number one, prioritize safety to reduce the number and severity of crashes. Number two, prioritize security from the outset. Three, promote Technology Neutrality by relying on marketplace innovation and competition. Encourage open Global Standards based on transportation platforms to enable enable a commercialization path that is scalable, operable, and reusable. And finally, number five, invest in publicprivate partnerships. That will help launch the future for transportation, especially in areas like 5g. It will develop trusted data and secure computing, machine learning, open standards, and, of course, security. So, i want to thank you for the opportunity to share intel s policy recommendations for u. S. Iot transportation leadership. I look forward to questions later. Sen. Fischer thank you very much. Next, we have dr. Robert edelstein, Senior Vice President of aecom. Welcome. Dr. Edelstein on behalf of aecom, i want to thank you for the opportunity to testify on the advancement of new technologies to enhance our transportation and infrastructure across the country. Firm wherertune 500 we integrate, design, build, maintenance, and finest ever sector programs. We rank number one in transportation. Over the years, we have seen Transportation Management tmcs, evolve, from becoming onedimensional to multidimensional and multijurisdictional. When we look at the next wave, it is incorporating algorithms and automated decisionsupport systems so we can stay ahead of congestion, rather than reacting to it. Aecom is a Global Leader in tmcs. Our forte is in the area of operations where weve operated over 40 facilities throughout the u. S. In california, we developed software to support the systems. In virginia, we have operated the reversible roadway systems. In new jersey, we worked with ibm, developing the next generation of advanced Traffic Management software, positioning themselves to incorporate the predictive algorithms and support systems in the future. In michigan, we operate 4 tmcs, and that is really the hotbed of connected vehicle testbeds as well as research. As well as where we are operating the gateway tmc, which will be accommodating the new innovations of the roads of tomorrow program in the near future. The pace of change in this area really creates a critical need of for advanced Technology Partnerships. Strong and Adaptive Technology partnerships allow communities to build on the Lessons Learned from previous efforts across the country. Aecom has collaborated with firms like xerox, where we developed software, with ibm, working on smart City Projects in india, as well as work weve done in new jersey. , we were selected and are starting work with the Colorado Department of transportation on the road x program and we have been supporting d. O. T. On the road to tomorrow program, coming up with new Technology Partnerships and new innovations. The internet of things provides endless opportunities for tmcs to grow. No one owns the internet, or controls the information that travels across it. So the same can be said about the internet for things. There are about 75 million servers that operate the Global Internet. 1. 2 billion cars on a roadway system throughout the world, more than 20 in the u. S. But cars are inefficient, they are parked 95 of the time. Our Transportation Systems outside of the peak hours and make a are significantly underutilized. So there is a reason why the leading Global Internet companies are looking at connected and autonomous vehicles. They understand the issues are similar to the decentralization that created the internet many decades ago. Iot approaches will allow people to be transported across more efficiently across multimodal Transportation Networks during designated dropoff times. This will enable the balancing this will enable the balancing of transportation supply and demand in realtime and allow the user to optimize their trips based on what is right for them in terms of schedules and the routes. In recent years, there have been several invasions that have affected the Transportation Systems, smoke smart roadways, and now most attention is focused on the connected autonomous vehicles. I would like to leave with you my vision of the future for tmc from my perspective. Tmc at the present continues to focus on Traffic Operations and safety, rightfully so. The tmc of the future will accommodate the next generation of strategies, Traffic Management, etc. The internet of things will include both transportation and not just partition functions together, while the disintegration maybe virtual disintegration maybe virtual, there will be advantages and disadvantages and the integration has potential to open up new layers new areas to operate our systems more efficiently, so i asked that you consider the tmc of the future when we build smart cities and my testimony that i am summoning for the record, as included a number of policy recommendations that i would like you to consider when you deal with these issues in the future. I would like to thank you for receiving my testimony and im looking forward to questions. Sen. Fischer thank you very much. Mr. Kass president at ch robinson. Welcome. Mr. Kass thank you for the opportunity to testify at todays hearing. As one of the nations largest logistics providers, we have a unique view of commerce prime manufacturer to consumer. I am president of the Management Services and i joined robinson in 1999, by way of an acquisition. I created a startup within robinson, trying to figure out how to Leverage Technology with the supply chain. Today, that startup business manages 3 billion of logistics in 170 countries. Our mission is to develop integrated Technology Platforms paired with services that help customers connect and optimize their supply chains. Robinson has one under 50 offices around the world, network has 150 offices around the world, network with carriers to be able to send shipments throughout the globe. We are speaking to the intermediaries position, which represents all sizes. We do not own commercial trucks ourselves, but we build platforms and services that streamline complex is partition management on behalf of customers. Our base includes railroads, airfreight, and ocean carriers. The division of robinson that i lead work with some of the Largest Companies in the world and this platform we developed serves as the platform that these Companies Used to gain control over their supply chain. Our customers include Companies Like microsoft and ocean spray. A major component of our proposition is routing massive amounts of operation and money quickly and accurately across the world, enabled by technology, from a check driver using a cell phone at app, to the customer that needs to find cost and tracking at the item level. The internet of things is driving change in our business. We are rapidly expanding told and Information Available to all partners across the supply chain. A single track Owner Operator uses our app to check in like a gps on their truck and similarly a global sugar can get updates anywhere in the world using a smartphone or tablet. Business today is part of a Cross Functional Team coordinating production and sales, and transportation, working together toward the goal of the customer expense and agile response. As Congress Considers the implications of an increasingly connected world, we see things differently. From supply chain and flow of goods viewpoint. Today, others discussed privacy and infrastructure, however we think that Congress Also needs to look at practical issues regarding Freight Movement brought about by the internet of things. We understand that the subcommittee doesnt have jurisdiction on all issues i will mention, however the internet of things forces us to look at our customers at the end of supply chain fact that supply chain practices. We want to reiterate, that is so forced the government to work across or be left behind by more agile government. The following are our recommendations. First, tax rates. Many Companies Leading the revolution around the internet of things are working with a tax code from the 1980s. Robinson has no assets and we pay full corporate tax, even though we are 208 on the fortune 500, we are a 100 corporate taxpayer. If you want to this is a prerequisite. What class Custom Agency worldclass Custom Agency, we see this as a benefit risk to the supply chain. When the system goes down for two hours in san diego, it impacts supply chain across the nation. We need to make sure that customs provides worldclass service and works well with agencies to supply safe and efficient movement of goods. Increase the resources for cargo deterrence, cargo thieves are using the internet to target specific freight and Law Enforcement is charged to investigate victims in many locations. It still a load of almonds may originate in california, be stolen on a truck out of misery. Landuse and planning around the rise of megacities. And personally freight moves between cities with use publicans and then spread, including chicago, new york and los angeles. Issues of landuse, parking, operating hours, they all interact with the speed of change of delivery direct to the consumer. Thank you for the opportunity to provide insight on the and in things and how it is affecting the supply chain of things and we look for to working with the government to continue leading the world. Sen. Fischer think you very much to the entire panel. We will begin our first round of questions, five minutes for each member. I would like to start with one issue that i have been concerned about and that is the creation of these regulatory silos. And i am worried about the lack of coordination between Government Agencies and Government Agencies where we may see duplication take place and cross purposes happen on this with regulations. When my Ranking Member and i and two other senators introduced the digital act, one thing we wanted to be sure to do was have a working group created and we did that. That is a working group of government and also private stakeholders. In we want to make sure that, that we can look at streamlining and having couple mentoring regulations complementary regulations between agencies when we address the internet of chain internet of things. I would like to ask all members, what do you believe is causing these regulatory silos and what do you think is the best way that we can encourage Cooperation Among agencies in order to look at how best to allow that innovation and creativity to continue to take place with the internet of things . They would like to start . Yes, dr. . I think the departments of transportation, including the u. S. Transportation is already taking that first step. It is really Transportation System management and operations. The way i look at it, with iot and the Transportation System management and operations, when they collide, that will lease release potential. It is creating Operational Integration between the various modal partners. Buses, trains, told roads, free roads freeways, and other operations. It is also aligned with performance metrics, everybody has skin in the game with regard to defining those metrics, tracking this performance metrics, and making sure that we are making certain improvement that is noticeable by the end user, which is the traveler. Again, it is not a regulatory issue, but more of an operational issue and i think that it is starting to come together rather quickly in many states throughout the country. Sen. Fischer mr. Davis. Mr. Davis i think you are asking a great question. Let me touch on a couple of things. I want to applaud the work that has been done on the digit act and the goal is trying to achieve, i think it is a very important direction for us to be taken with regard to the internet of things. You ask an interesting question about the history, in terms of why we have the silos and i think it has been because of the optimization that is needed in those industries. We need to optimize what is happening in shipping come in retail, in the network infrastructure, so that is a very natural evolution. But as we think ford around the internet of things, that will be one of our challenges to scale, to have local optimization, because we see that these technologies need to create the connectivity between things and the datacenter cloud that will need to become more common. That is why we are advocating for the implementation of open platforms, to allow for much greater flexibility, to break down some of those silos. That will be essential for the internet of things to be able to scale. We look at five g technology, we look at what we are trying to accomplish across the industry with regard to security, these things need to be much more open. They wanted to be given by private and public partnerships, that is global and able scalability as we go enable skill building as we go for it. Sen. Fischer do think we will have to see a collision take place before we have that openness, or will we be proactive in trying to head off before we get there . Mr. Davis i am hoping we can be proactive and avoid a collision, but i think it is important to think about this globally and think about what is happening in other parts of the world and have that National Iot Strategy for the u. S. To really be any leadership position to shape how that evolves and as far as we can think ahead and be proactive, that will avoid the ultimate collision. Sen. Fischer thank you. I am running out of time, but it the other three witnesses but if the other three witnesses can give me short answers. Your answer is exactly right and something we have been driven to do as we are working closely with the federal trade commission with regard to privacy. We have a huge stake in it and we are working closely with them. We are working on Cyber Security and access and the fcc when it comes to spectrum. We are not lonely working across the federal government, we are working with states as well and working very closely with them, because what you do not want to have is password. Sen. Fischer ms. Reynolds . Ms. Reynolds i appreciate the question and obviously the government silos are nothing new, something we have struggled with for a long time. I think what it really comes down to is the way that we measure success, it is often at odds, so the point about having a shared performance metric and hearing a clear signal, which we heard from the federal government, that the road to funding is paved with partnership. If you want to be at the table, you need to bring private partners with you, the state, your region, those are really bringing up some very uncomfortable technicalities that we need to wrestle with, so i think that that is one of the major ways that there has been kind of a happily forced arranged marriage among different sectors of the public and private side. Sen. Fischer mr. Kass, if you can condense. Mr. Kass my expertise is supply chain, not government. Having said that, as i said, the only to be broken down. If we do not do this, what will happen is there are two supply chains, a physical one and a virtual one. The virtual supply chain is about moving information and money, and in the internet of things that will be visible, if we do not fix the problem all the problems that exist today, the failures, those will be exposed on a massive scale. So we need to get in front of it quickly. Sen. Fischer thank you. Senator booker. Sen. Booker when i was mayor of my city, i discovered that just getting my accountability from my team members, if i sort of encouraged constituents to tweet at me problems, i would find out about things and it worked better than i knew. I could find out about potholes and traffic lights out, so i was crowdsourcing what was going on in the city. Obviously, that is a rudimentary way when you can set up cities like los angeles, where you have sensors detecting problems and funneling information at this bead of light at the speed of light. So for me, this is really exciting. Will you please give the mayor my best when you get back to los angeles, he studied with me at oxford, he still owes me 10 pounds mother that is only worth about . 50 the way the pound is going. Tell him i want my money. [laughter] sen. Booker tell me what kind of challenges you guys are facing in implementing the cutting edge vision in los angeles, what are some of the biggest obstacles to being a smart city . Ms. Reynolds think you for the question. Two things come the one is fundamentally two things, fundamentally, the private and public side need to get out of their comfort zone to achieve a partnership we need. Our practices, they would probably be the single they just that and biggest hurdle to getting private partners to the table. It takes us about 1824 months to write a request, the technology has a repast by. And others have done a good job singling that they are willing to waive some of the requirements to allow us to have access to city funds. Second, i would say that, the role of government is that we can our most rudimentary toll is that we can say no. And we find ourselves in that position when we are encountering the introduction of new technology and transportation in the city. We need to pivot to using one of the other lesser used powers of government, bringing people together, to convene, possibly to regulate and make sure that the price of entry into our city is that you need to serve them equitably. I will give one example, we recently executed, the mayor executed a data sharing agreement with wave. One in four drivers is using wave to get around the city. With positives and potentially negative impacts. The way we have been using it, bringing the data into our system, using the data streams we have to make our system even smarter. We saved los angeles drivers 40 hours every year because we have a Smart Transportation signal system. That is the tip of the iceberg and it points to the other big challenge, we do not have the skill set inside government, i do not have a Civil Service classification for data scientists in the city of los angeles and we desperately need those kind of skill sets inside of government, so that we can really come to the table as an equal partner. Sen. Booker i appreciate that. That is what the white house is finding out, that is one of the biggest problems we have. Dealing with massive cut with massive companies. I appreciate that. Mr. Davis, mr. Kass, i get annoyed when i watched other countries that are out innovating us, we should be the Innovation Capital of the globe, i want us to be number one, but when i see the Drone Industry for example, watching innovation in that sector go over to europe as opposed to hear, because we have not created an environment that is best for that, so the two men that are in the private sector, could you guys tell me what are other countries doing better than us that we should be doing better than them . Mr. Davis i think it is a great point, one of the reasons we have been advocating for private and public partnerships, to be able to bring private industry alongside what is happening from a regulatory standpoint. Also happening in academia, to be able to provide those kinds of partnerships that go off and define what needs to happen, emphasis on what, as opposed to very specific how for the implementation. That is what we usually find what is happening when we find that regulation in place to early, the technology is still rapidly evolving, we should agree on what we are trying to accomplish, as opposed to specific and limitation. We see that happening globally, the opportunity to innovate much more openly. Sen. Booker i want to be respectful to senator cantwell, i will go ahead to her. I do not want to make her angry. Sen. Cantwell thank you. Thank you to the panel. Is it monje . Thank you so much for your work. I wanted to talk to you and mr. Davis about freight, because this is something we want to be strategic and about in the United States, the opportunity to ship more goods from the u. S. , very important Economic Strategy for us but we need to move in a timely fashion and there are lots of challenges. How is the department of transportation, we have this now, the strategic freight plan, how are you working to make the internet of things we had one of the california boards here last year and they talked about the efficiencies that you can roll out that are at the port, but having this kind of Data Information on Cargo Movement and trucks. Hon. Monje figure for the question. Freight is the lifeblood of our economy and this congress is really pushing us as a department to come up with a Strategic Plan to work with states. In terms of the internet of things, it has tremendous potential. We will see more freight in the coming years, across the sea waves come on the road. Some things we are doing include testing and improving the quality of the technology which we are implementing our ports in los angeles and it is helping operators get car go off of ships and where they need to go a lot quicker. We have connected vehicle pilot in wyoming trying to speed traffic on interstate 80, which has major weather events, so how we are using technology to move that. As part of our smart city challenge, we got a lot of meat examples neat examples of communities trying this out. Columbus is proposing, and they will implement, the ability to Practice Track tuning and smart core doors, better way to do urban parking, and one of the better ideas that came from often, looking at shared urban delivery lockers must of people who get off the bus lockers, so people who get off the bus can get their groceries and package and not making a trip. So we are doing Foundational Research in the maritime area, we know that this is a tremendous area of opportunity and we need to be partners in the process. Sen. Cantwell mr. Davis, i think the average tractortrailer gets six miles per gallon, so anything we can do to increase fuel efficiency will be a huge savings and i knew that know that dot has a super truck, were you referring to the super Truck Program . Sen. Fischer freightous. Sen. Cantwell ok, i know that you have a super Truck Program, so how do you think that some of these tools will help the Transportation Center on deliveries . Hon. Monje i think we have seen exciting technology. Mr. Davis i think that mr. Monje described a couple, to be what about technology and trucks that enables us to understand how they are being driven and able to provide feedback to the driver about how he or she could drive more efficiently. We have seen the supplemented in some large firms already and they think it is pretty impressive and they see those improvements in full efficiency. Fuel efficiency. And we see technologies that allow us to costeffectively identify the location and conditions of valued freight, so we know where it is and the conditions it is being subjected to. And then to be able to use a time this technologies, to be a do it and if i containers coming in on a ship, where trucks are located, to be able to synchronize the way they are offloaded to take advantage of the trucks or the traffic conditions, to move the material effectively. So we are seeing interesting early stage technologies, the challenge is how we make that more and more common across all of the applications to move to scale. Sen. Cantwell i think we learned in airtight air transportation, that there is a cell lot. There has been an increase in freight traffic and we want the u. S. To make things, sell things, move them, but the congestion level of the ports is so great, so a strategy that could more easily ease the traffic in there and move it any more systematic way would be huge savings and it would help us with our competitive miss competitiveness in manufacturing. Thank you. Sen. Booker thank you. The internet of things leads to the internet of threats, because obviously every device that has the internet built into it is subject to hacking. That is the bottom line. You have to deal with the digital tale of two technologies, the best of technologies, the worst of technologies, simultaneously. If you do not deal with the threats, then all you are doing is ignoring the inevitable problems that will be created. So, today new powers are computers on wheels. That is what they have become. In 2013 and last year senator blumenthal and i asked 20 lawmakers 20 automakers what they are doing to protect computers on wheels and here is what we learned. Thieves no longer need a crowbar to break into a car, maybe just in iphone. Last year we witnessed how easily cars can be act, we watched hacked, we watched them remotely to take control of breaks of a jeep cherokee. Chrysler had to recall 1. 4 million vehicles to fix of this security problem. But in this new internet of things era, Cyber Security cannot be an afterthought, rather than addressing separate Security Problems after a hack has occurred, we need to ensure robust seven security protections are built in to these technologies from the beginning. And that means we need enforceable rules of the road to protect driver privacy and security. That is why i introduced legislation which senator blumenthal with senator blumenthal, the spy car act, that directs the highway Traffic Safety demonstration and the federal trade commission to establish federal standards to secure our cars and protect our drivers. So, for all of the panelists, please answer yes or no. Do you believe that cars should have mandatory Cyber Security standards, including hacking protections that protect all Access Points in the car, Data Security measures that prevent unwanted access for collected information, and hacking litigation technologies that can be that can report attempts in realtime . Mr. Edelstein definitely yes. Mr. Davis definitely yes. The one thing i would add, i think it is important to define what we need to accomplish to address the things you described, but also to allow technology to evolve quickly. Evolves but it is still not installed, we should mandate it is installed. Mr. Davis we should define requirements to make your that things are secure. Mr. Kass we need the appropriate controls, but i agree we need to do it any very balanced way that does not kill innovation, innovation is like a waccamaw, it will pop up someplace else, so we need a way of ensuring to mention that there are controls in place, it is not setting innovation, but rather helping it. But having it over the years, people can get away with out protections against privacy, it saves money. It is whack a bad person. Mr. Kass it is innovation. Somebody is going to innovate and it needs to be us. At the same time, we then have to tell people who do not want to install the safety protections that they have to do it. Mr. Kass fair enough. Thank you. That is all i am saying. Ms. Reynolds . Ms. Reynolds certainly, yes. There is a role for smart and for structure as well, one of the few benefits of having started are connected signal in the 1980s, it is virtually on high couple, there will be a role for every structure to prevent just not just the hacking, but those Software Technologies that are out there. Again, thank you so much. The airbag is good, but we want the technology to evolve a little bit more. So we will use those seatbelts and hacking protections in the spirit protections. Hon. Monje seven security will be a continuous challenge for the rest of the century. And on behalf of safety, certainly from the manufacturers, and we are doing everything we can. We have established standards and a system for the technology to ensure that the information can be shared safely, we will continue to work with the industry, and experts to make sure that we continue to fight this threat. Dr. Edelstein, do you believe that we should make on is explicitly aware of collection transmissions, retention and use of driving data and provide owners the right to say no to Data Collection and retention without losing access to key navigation and other features . Mr. Edelstein yes. Mr. Davis yes. Mr. Kass yes and generally speaking, with all the information that will be available the concept of opting out is important. Thank you. Ms. Reynolds yes. Hon. Monje it is very important to only collect information you need and make sure that consumers know what you are sharing. Thank you. That is a great balance. Like any other technology, there is good and bad and we need to make sure that we build in protections at the same time that we build the opportunities, and if we do that i think that are responsibly as policymakers will be the build. Thank you chairwoman and senators. Sen. Fischer thinking. Dr. Edelstein, in your written testimony you discussed several innovative transportation projects that you are currently working on, for example you mentioned that employees monitor the Brooklyn Bridge for temperature, what is the impact of Realtime Data monitoring on our nations critical transportation and for structure assets infrastructure assets, especially as it relates to public spending on minas . Maintenance . Mr. Edelstein we are not monitoring the Brooklyn Bridge, that is a case example that other people are doing. Again, my vision for the control centers of the future, i really think getting into moving people and cargo more efficiently, but also Access Management in realtime. Assets management in realtime. We can monitor bridges, smart buildings, or is with regard to energy systems. We can put sensors on Water Systems to see if there are any leaks. What we are looking at is a control center, again it could be a virtual control center, it does not need to be one massive building. The control center would monitor all of the assets that the agencies own, operate and maintain. And i think by doing that you will get more efficiency and i feel like it will dovetail very nicely with the smart city concept. I think there are platforms that they will be using allow everythings everything to be interconnected, but there needs to be a control center that monitors all of these in realtime. To gain more efficiency of the system. Sen. Fischer and as you have a control center that is monitoring, i would assume in a more timely and more accurate manner, how do you see that affecting safety in the future and also looking at the reliability of the infrastructure, using the example of the vertebrate of the Brooklyn Bridge . Mr. Edelstein with regard to safety, there was an incident with i35 in minnesota. Hopefully by having the sensors on the bridge we could be more proactive in detecting if there is something wrong the bridge ahead of time, so we can make corrections before you have a catastrophe, Something Like that. Um, in terms of reliability and other forms of safety, the Management Centers are already doing that. They are able to detect a lane closure or an accident a lot faster than the way it used to do it without the technology to the systems. For example, we have been working on a project in miami for the last 10 years, operating their control center. When we first got it, its about 50 minutes for a server it took about 15 minutes for a sensor to see a lane blockage, now it is about half that time. It translates to safety benefits and time reliability. In terms of safety benefits, for every minute that we save in a lane blocking event and clearing it that much faster, translates to about 3 of a probability of a second accident happening. So if you take a 15 minute lane blocking event, taking a lane blocking event and you can clear it 15 minutes after coming were talking about increasing or improving the improbability that you will not have a secondary action by about 40 . In terms of liability, for every minute you save translates to four minutes of saving. So you have a 15 minute clearance improvement and that translates to about an hour back of delay that you are saving. I think it all ties together with the management traffic and safety. When we first got it, its about 50 minutes for a server it took about 15 minutes for a sensor to see a lane blockage, now it is about half that time. It translates to safety benefits and time reliability. In terms of safety benefits, for every minute that we save in a lane blocking event and clearing it that much faster, translates to about 3 of a probability of a second accident happening. So if you take a 15 minute lane blocking event, taking a lane blocking event and you can clear it 15 minutes faster, coming were talking about increasing or improving the improbability that you will not have a secondary action by about 40 . In terms of liability, for every minute you save translates to four minutes of saving. So you have a 15 minute clearance improvement and that translates to about an hour back delay that you are saving. I think it all ties together with the management traffic and safety. Sen. Fischer do you see cities and states and also private businesses stepping forward and willing to embrace these new technologies . Is there enthusiasm on their part or is it balanced with i guess reality and looking at the cost . Mr. Edelstein it is the latter, there is definitely enthusiasm, no doubt. But any city struggling, just pain daytoday bills paying daytoday bills, they need to deal with potholed and Infrastructure Improvements that could increase capacity in some of the roadway systems, said technology is nice and they are looking at that as a longterm solution, but balancing the firefighting issues that they deal with on a daytoday basis and the budget and the evolution of technology as it comes, it is tricky. I would have to say that most cities and states are very enthusiastic about technology innovations. But again, it is so much money to go around. Sen. Fischer thinking. Senator booker. Sen. Booker asked is she could go next. Sen. Fischer senator. I am the Ranking Member on this bill that we passed last year on sex trafficking. I want to thank all of you for coming out, but i want to take also mr. Kass, with his 22 years of experience in Freight Logistics. As you may know, the is robinson has evolved c. H. Robinson has evolved into a major provider for logistics, the Largest Network of carrier capacity in north america with gross revenues of 13. 5 billion in 2015 and one of 17 fortune 500 companies in my state, so we are proud of the work they do and what they can bring to the discussion. Mr. Kass, can you talk about how you leverage the internet of things at your coming to increase the efficiency of multimodal shipments . Mr. Kass sure. When you think about our company, its focus is on developing Technology Platforms and services that connect automated and optimized supply chains. What the internet of things have done is allow us to create algorithms that quickly and easily select the most optimal mode of transportation. Many shippers today cannot respond in the time, they do not have resources, maybe not the expertise to look at the Freight Network and what it looks like in realtime. And frankly ship from a truck loaded to a multimodal shipments, which poses significant in damages. Multimodal will reduce carbon footprints, it will lower the overall cost and it will take capacity off of the road and put it into a safer environment. Multimodal will reduce carbon footprints, it will lower the overall cost and it will take capacity off of the road and put it into a safer environment. Very good, thank you very much. One of the things we have learned in our state, which i guess we share with all three members, nor asked new jersey, Wisconsin New jersey, wisconsin you know that if we have snow, the trains cannot go. Another the department of transportation applied for a grant through the advanced Management Technologies deployment program, quite a mouthful. That is used to prove to improve the effectiveness of snowplows. It is no small thing and our state, were proud of how quickly we are the roads that clear the roads, but clear there is the technology the roads but analogy can always make it better. In washington, d. C. How will the new Communications Opportunities improve Public Safety and the delivery of Government Services with things like snowplowing . Mr. Edelstein well, if you look lets talk about the enduser, the enduser wants their street snow piled within a certain timeframe. They want to know when the street will be plowed. By having the internet of things, this can provide communication between the individual and the Agency Responsible for the plowing, so you open up communications. Also, you are opening up the potential to optimize where you have snowplows, with roads deserve the highest priority and you can monitor it in real time, so you do not do multiple runs of a street because the snow is coming down, you have potential to use the fact that a to optimize the snowplows, assuming they have Automated Vehicle location devices. Or sensors. That is a great example. I really am stunned by how long it takes. My daughter went from Public Schools in minnesota where she had no snow days for several years, then when she got to the arlington Public Schools, she had two weeks off in her first year. So, i do think that there needs to be a better way to do that and i understand that there could be more snow affected by it. My last question along the same lines, the need to have broadband installation and vast broadband to make this work. One thing we have now would actually require the focus to be more on when you have highway project that you want to put the internet in at the same time to make it more efficient and obviously many people on this committee are working on expanding access to broadband in rural areas. Any comments about the need to have wifi to make all this work . Mr. Edelstein it is outside my expertise. Can you assume that we need wifi . Mr. Edelstein yes. Ok, thank you. Want to finish up on the questioning i was doing before, the other countries and what they are doing that is better than the United States, what we should be learning so that we can become the global x or local expert on planet earth. Didnt know if you want to add some more. One example, Great Technology enabler for the internet of things will be wireless infrastructure. We see a number of countries moving very quickly there, testbeds, creating opportunity to do trials. We will see it not only in fixed infrastructure that needs to go back to the cloud, but mobile and researcher, what we see in germany, they are running trials on the autobahn to learn how to maintain high data rate connectivity when a car is moving very fast down the freeway. We see around the Winter Olympics and the summer olympics coming up in the future in south korea and japan, by doing early pilot testbeds, the more we can do to foster those sen. Booker where we not doing that here . With 5g there are so many innovations, you have a more predictable market for innovation and patents in europe that you would not necessarily do here, is that the reason . Mr. Davis it is about creating opportunities, use the big event like the olympics, that is the focal point for that country to say, lets put a lot of resources into it. Sen. Booker so maybe we are not creating sandboxes where people can mr. Davis we want to look for more opportunities where we can say, lets go all in and create a solution to really kind of force the technology to get deployed, lets understand where we need to do more optimization, looking for those opportunities. Sen. Booker thank you. And jordan, first of all, i want to echo because you put in your comments something i feel very strongly about, we have a ridiculously bad tax environment to incentivize companies here and i see it in biotech with a lot of new jersey firms in ready now because inverting now because of the bad obama, so please do not think i have not gone to that point inverting now because of the bad environment, so please do not think ive not gone to that point. So what are other places doing . Mr. Kass thank you for reading my mind my that was going to be how i answer the question. Secondary second, when i look at our global base of allen and the diversity of it, there is something that has happened where we are not developing Massive Technologies the way that other countries are. I think that is core to engineering and i think it is core to where the internet of things is going. Do not get me wrong, we have talent, but we if we are not developing at this need and speed and pace the other countries are sen. Booker we are out of the top 10, other countries are realizing that this new technology will necessitate having and america is falling behind. Mr. Kass and there is a bias to it. We need to figure that out as well. Sen. Booker dr. Edelstein, anything to add, especially about the port efficiencies and technology i have talked about, in the northeast people are choosing canadian ports because they are more efficient than ours are. Are there any other countries are doing something with Freight Logistics that we could be learning from here and catching up on . Mr. Edelstein other countries, freight, um. Sen. Booker let me try to get in my last question. If you have a government dollar, if we were investing, where would you focus the government dollar on to get the biggest return . Mr. Davis creating partnerships to really move technology ford, from forward, from the private sector and academia. Mr. Kass infrastructure. Sen. Booker be more specific. Mr. Kass specifically the road infrastructure. If i painted a picture of the united date state and i showed you traffic flow around the United States you would see were those arteries are unbelievably constricted, in major cities. And there is a kind of urbanization that clear. There were 10 megacities over 10 million in population and now there are 23. People are moving into cities because they need access to products and that trend is clear, and if we do not fix the and researcher, what we do with the internet of things, it will expose the fact that we cannot move goods properly. Sen. Booker i really like you, mr. Kass. [laughter] thank you. Thank you very much. Thank you for your help and your service. I will ask one quick question. Positive train control, what can we do to achieve it more quickly and implement it around the country . I will start. Thank you, senator. We have been pushing positive train control and they give your leadership on this issue, i think that we are very excited that we have 199 million to spend, thanks to the act to help commuter rails get on board. Still significant challenges across the Rail Industry to implementing this, including equipment issues. We are doing everything we can, working with the fcc, working with class ones, doing everything we can to hold their feet to the fire and to make sure that we get this technology deployed quickly and safely. We know that the technology would have prevented the crash in front of in philadelphia. And the opportunities for safety are substantial and we are dedicated to this technology. Any other thoughts . How about sensors at Railroad Crossings . These are practical, real Safety Measures rail Safety Measures that will save lives. Mr. Edelstein it is an idea, but it takes about a good model for a train to slow down to get to the point at that railroad crossing, where that person might be in the crossing would avoid getting hit. I live in florida, we just had an incident like that last week, a family of four was at the railroad crossing, three of them got out but one of them got hit by the train. Communications needs to be with the driver of the train to bring it back to the control center, it would not give you enough time to react. In urban areas where you have Railroad Crossings, about 34 per mile, it becomes a tricky situation. With the internet of things this could be managed more efficiently than the way we are used to doing it. I think there is a lot of upside potential in addressing these issues with Railroad Crossings. Senator thank you, all. [indiscernible] sen. Fischer thank you for being here today. The hearing records will remain open two weeks. Upon receipt, the witnesses are requested to cement written answers the committee to submit written answers to the committee as soon as possible. With that the meeting is adjourned. [chatter] [captions Copyright National cable satellite corp. 2016] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org]