Transcripts For CSPAN Key Capitol Hill Hearings 20140512

Reports or goods. A lot of us have been to singapore and we see how these city states are also becoming magnets for a lot of the production, not necessarily the innovation work. And deborah mentioned the p3s. My companies headquartered abroad are familiar with publicprivate partnerships. England went there about three decades ago. Deborah mentioned brazil and chile. China. Oh, china. I am also mentioning chile, who have built a really good private sector with public involvement. The u. S. Is not set up as well to accept some of that investment. It is interesting. I am going to bring this up because i am an enormous nerd. You watch a company like elon musks tesla. Elon musk came out with the idea for the hyperloop, an entirely new type of transportation infrastructure that would lower the time between San Francisco to l. A. To about 30 minutes. What was fascinating to me is how people said that will never work, you cannot do that in this country, we cannot build anything this big. The politics would be too complicated. The reaction to that idea, whether you think it is crazy or not, was fascinating to me. There seems to be this attitude in the United States that we cannot do the big, new things. And this is the country that invented the big, new thing. As you look at all of this infrastructure investment, to what extent has the United States lost its ability to do those really large, important things . Out in the you went street and asked the American People who is the biggest manufacturer in the world, oh, china. Really . No, we are. Who is the most efficient manufacturer in the world with a few specific exceptions . We are. Where are people coming to do more manufacturing . Us. There are all sorts of big, new things going on all the time. We have been fracking for 69 years. The ability to do horizontal fracking and all of that kind of stuff has made the cost of energy in the United States compared to europe which, by the way, is critical to the United States. Europe is our largest import market. Look at what we have done to drive the energy here down to a quarter of what it is. Look at what we have done by the way, there is one bad thing. We have taken 45 of the jobs out of the manufacturing business. Supply rid of chain management, now we are a with people without jobs and we have jobs without people because we need really skilled folks to do this. We are a sophisticated we are the most reductive economy in the world. A lot of our big ideas are going on right under our nose. But i do absolutely agree that people look at the United States and wonder now, can we do it or will we do it . And is a fundamental issue that problem is not all about government or people around the world. It is all about our own citizens, who have gotten comfortable, do not like conflict. Do not like risk. Do not like to work too hard. I think we need to stop and think with our children and our grandchildren, what are their futures . Talk about the energy side of this. I read a rarities of good news that the United States could become one of if not the leading oil producer in the world in the coming decades. That is a conversation that i cannot imagine us having 20 years ago. It was very doom and gloom about energy in this country. Now the Energy Picture is changing. How does that change the and whatcture piece you are going to do . Five years ago, we would be hardpressed to find that cover station, that the United States could become the world leader when it comes to energy production. That to your previous question. What we have been able to is an example of those big ideas that the private sector has been producing in this country. Thereen to believe that is no limit to what americans are willing to try to achieve. I want to add one little note. I think it does factor into our ability to maintain this edge or this leadership position on energy production. It is the government role. Complacency and conventional wisdom that americas best days are i should not say conventional wisdom, but some would say that americas best days are behind us. That is ridiculous. One of the reasons that that is ridiculous is because, at some point, the American People are going to rebel against the government that is taxing too much, regulating too much, that is saying that we cannot do things that we could not do in the past. I think energy is a perfect example of that. So what we have been able to achieve on the energy front will ourw us to maintain economic leadership. But it is in doubt as well. You are starting to see new rules coming out on fracking or an effort to centralize the rulemaking process. The states are doing a great job when it comes to maintaining Public Safety and health and ensuring that fracking is done in a responsible manner. We have politics at play when it comes to permitting lng exports. We have got to move past that. I think several people have indicated that this is not just a problem that has occurred, this competitiveness issue is not something that happened in the last five years. For manufacturers, we have been lastated to death over the 30 years. That has been in administrations republican and democrat. Upt is why every one of us here are talking about Regulatory Reform, competitiveness. And the importance of Regulatory Reform when it comes to ensuring a 21stcentury infrastructure program. Energy is definitely a key. It can lead the way and show us the path forward to breaking through these political barriers in washington. That andd jump in on say that we should be also thinking, and we do, of our regulatory capital cost system as an infrastructure. Unfortunately, we have allowed ourselves to be competing globally with other competitors who do not want to compete on that. They want to compete on the higher value products and services they provide. We are being toppled by that. An example, we are talking about the energy and the potential of for theergy weak and, first time, being energy strong, geopoliticale security implications. Obviously, what is happening in russia and other parts of the world. For every study that has ever been done, says that our product huge,ity laws are a hostile set of behaviors for innovation. And talk about where a lot of the next generation asks us where we put we have known examples of companies who will not be put here because of our product. One thing i wanted to say in referencing the fracking and all of that, this gets back to the publicprivate partnerships and the appropriate role for the government. The Actual Research and development that enabled horizontal drilling and fracking really started 30 years ago. With investments in the department of energy. Is exciting thing about that if we look at the next iteration of that, there is work underway in our National Laboratories to develop new processes to move into this fracking area, not having to use as much water, not having to use chemicals that give concern to the environmentalists. Also, related to energy and manufacturing, to begin to develop synthetic rare earth materials, which will have huge implications for everything we are talking about here, manufacturing, competitiveness, the whole industry. I want everyone to start thinking of questions because i know your questions are going to be better than mine. We will go to some q a as well. One last point about energy. In the cfo survey we did of over 100 cfos of foreignbased companies in the United States, energy ranked as one of the most positive reasons that these companies are investing here, manufacturing here, using the u. S. As an export platform. What was interesting, if we did some cross tags and looked at the Energy Companies themselves, they are the most pessimistic because they are worried about regulation. They are worried about standardization and rules coming down the road that might interrupt their Business Plan that they know that they can be successful. So energy is one of our top competitive advantages. The Energy Companies themselves within my membership are concerned about the future. Tom, you had a point too. I think it is absolutely appropriate to get around to energy, but i want to make one point about energy. There is only one absolutely major crisis facing the United States that we all know is there and nobody wants to talk about. Thes the ugly elephant in room and everybody turns their back to pretend it is not there. 10 years from now, we will be in a situation where the federal government will have grown its 6get from 3. 8 trillion to trillion. 66 for entitlements. On the debt. Est when we get finished, like 22 or the military and Everything Else that our government does at home and abroad. Including infrastructure. Everything has got to be in that. Basically, the number gets huge and most of the money goes to two things. , medicare,itlements medicaid, social security, military entitlements and so on. Around for ang long time and the reason we would not look at the elephant is we did not know what to do. People living longer and longer. By the way, i like that. [laughter] longer and longer and the costs are getting greater and greater. What are we going to do . We found some things that we can do to help. , ifears from now, we will we do it right, if we do not let people stick their heads in the sand and pretend it is not something we have to deal with, we will develop the American Energy system to the point where we can take a big bite out of that entitlement deal. And if we do not, we are really in trouble. I have to jump in and say that if you look at two sectors of our economy that do not have theuctivity, they are Education System and the healthcare system. That tells you something right there. That we are not having systems that have productivity growth and all of that as well. The solution to the entitlements, you can look around the world. A country like israel, very innovative in what they are doing. They decided they were going to increase the age before people could get their social security. We are already doing that. But we are still working on 1930 models of actuary tables, for the most part. That could immediately have a huge impact if we could get bipartisan agreement to increase that. I want to ask you all about congress, bipartisan agreements, and what this particular congress is capable of. I also want to make sure that we have a chance for people to ask westerns. I know we have some folks roaming the halls with microphones. I cannot see all of the folks over there, so if anybody is raising their hand, let me know if there are questions in the back. I do want to get everybody involved here as well. Talk a little bit about this congress. Completelyems to be pessimistic about it. It is the ability to do anything, even the mustpass , because of the gridlock on capitol hill. Listening to you all, or you get the sense that this is a pressing problem, has to be dealt with, crucial for the future of the u. S. Economy . What faith do you have that congress can rise to the occasion and do something this year even the gridlock and the political mess that we have seen and given the fact that there is an election coming up . I will put you on the hot seat. No problem. The perfect issue for the election coming up, because the public supports modernizing our infrastructure. I am an optimist. I know a lot of people are betting against Congress Taking any action this year. But the timing of the highway now,running out for right these are great issues that i think the public can get behind with strong leadership. What is your sense of this congress . Can do a congress that stuff or is this a congress that will want to get home and campaign and stay in the trenches . Particular point, i am not as optimistic that they are going to do anything big. I think they will do some incremental things around the margin. I do think that we have a huge opportunity to be setting the stage for the next election. And to make the case that, ultimately, and tom alluded to this and i think jay did as well, we are talking about fundamental Security Issues as well. You talk about Homeland Security challenge. Know this,appen, we our transportation, our water. If we do not have water, we are going to have a week before people start dying without water. Also presenting this is much to National Security is very critical. I am not as optimistic. My colleagues are. Are you still optimistic . I am optimistic. If you look at eight period of time from now until the elections, there are some things we have to do or are getting set to do. Everybody talks about lameduck deals. Every now and then, every three decades or something, we will have one that does a lot of stuff. Believe that there that wee or four things will have a shot before they are finished. Deals we will get a tax done. Taking those away would be another huge tax increase on american industry, which would affect jobs. I do believe that we are absolutely crazy if we do not take advantage of having passed out of theion bill senate. Going back to do it again might be harder. And do something rational in the house and put it together. Lets get the three or four things we really need there. And we have a lot of heat on that. And we are going to put a lot more. You think immigration is doable this year . Yes. Really . Yes. You are more optimistic than i am. Lex i will give you three reasons. If the republicans do not do it, they should not bother to run a candidate in 2016. I mean, think about that. Think about who the voters are. I just did that to get everybodys attention. Everybody should immediately t, by that, tweet tha the way. I want that to get out there. We are a nation without jobs and jobs without people. You need all of these people that we are training in the universities. The best universities in the world and we tell them to go home. When you do that, you send the work to where the people are. The third reason we need to do this, and i will have another one, the bottom level of work is people who are seasoned workers. People in agriculture, you talked about health care. I will tell you a line of business we know something about. We just did a big thing last week and that is the retired people in Nursing Homes and Retirement Homes and all of that. A lot ofen giving speeches and saying, if you do not want to do this immigration thing, you are going to go to the nursing home and pick up your mother in law and bring her home. Right. If you do not have a labor force working and generating these entitlements, you do not have the ability to take care of america could sit down for a minute, put a chalkboard up and say, look, we have five or six things that are really a challenge. He have immigration because we have all of the issues we just talked about. We talked about entitlements, energy, infrastructure. Four or five of those things and put them together and reasonable people can look at it and say, you know, we can do that. All we have to do is decide to do it. If you look at what has gone on in the primaries, where people are now getting focused on trying to elect people of both parties that are going to go to washington and get something done. Jay, where do you stand . For those in the audience who is committed to this, this is a unified position in the business community. I do think that Immigration Reform does give you an idea of what can be accomplished. Think it will get done this year. I think it will happen in the lameduck session, the final piece of legislation. Maybe i think that, too, but i am not what you think and what you say that would be the fallback. For manufacturers, Immigration Reform is imperative. Tom mentioned the workforce issue that we are all experiencing. There are 600,000 jobs in manufacturing today. This immigration bill can go a long way towards helping us fill those positions. More importantly than that, the pathway is essential to manufacturers because we work very hard to build communities. Thatu take our present law is current to its natural conclusion, we would be ripping apart communities and the fabric of this nation. Manufacturers are committed to that. You are also committed to getting things done. We need to see some Movement Forward on trade. Something every president since Franklin Roosevelt has had. It is essential to increasing our economic footprint on the world. Get to infrastructure and you have a different issue. If this thing goes belly up in july, even before the september expiration of the current bill i used to work for a governor. George allen in virginia. Effective whenas it came to talking to members of congress about how structured funding was impacting our ability, as a state, to do our jobs. There were 50 governors, but the republicans and democrats were pounding on the doors of congress. When the American People are saying, look, you cannot hold up our states ability to fix roads, to build new roads, to provide easier ways for us to by thework and back and, way, we really do care because we work for a living. We care about getting the goods that we are producing to our customers. The American People want to send a strong message and i never doubt the ability of congress of governors to force congress to get things done. Let me open it up to questions. We have a lot of people who want to jump in here. Let me start to my left and then we will go to my right. Right here in the middle. Go ahead. If you could give us your name and organization as well. I am bob hirschi. I am a consultant. To what extent can you use the internet to try to get people together and get an economic consensus and get the money together to get things done . Can you use the internet . I also throw into that social media in terms of mobilizing support for what it is you want to do. Does that give you an added tool and how do you use that . Why dont we start with nancy and work our way down . A social media, without doubt, is a very powerful tool. I think that you can absolutely build up and we have seen what has happened around the world build up some nice Political Support for that. We also need political leaders willing to take some risk. You the ability to know, i raised the issue of publicprivate partnerships earlier because it is something that foreignbased companies are used to doing. Getting more acceptance of that through social media as well. Often times, politically, the fact that a Foreign Company is going to lease the toll road and operate the toll road is used as the reason to defeat the project itself. You know, a Spanish Company is going to come in and do it. Not sure where that Spanish Company will take the road. They are not going to move it home. We have seen the success of that before. Anyone traveling during their commute on the hot lanes can thank an Australian Company for partnering with the commonwealth of virginia to do so. Total media is a way to get people to understand it better. We also need government willing to show some better leadership and not just look at what the polls are showing, not just look at what twitter is following. Think about how fast those hot lanes go in virginia. That Partnership Works very well. We have another question over here. Sable withrick brookings. Just a quick question. Ly,s berkeley historical about 27 of Infrastructure Spending comes from the federal government. What can the federal government do to support those innovations, whether it is publicprivate partnerships, gas tax increases that we are seeing across the country . What can the state and local leaders do and what can your organizations do to help them push the ball forward . Look at a project. The federal government can actually put as much as 50 in it. The state and the local communities would divide up the other 50 . If you are the governor today, then you are the mayor and others in the community involved, you will be nervous on putting your money up on projects that you are not sure that the federal government is going to bring their money. They probably feel, we will get paid sooner or later. In the meantime, we are holding the bag. What are people doing . They are having their own meetings with the governors and local officials and they are saying, we are going to hold up on that. We will fix that bridge next year. It is already starting to happen. When that happens, people are laid off. Poor people are not hired. Or people are not hired. We have to understand that this is a partnership. Not only a publicprivate partnership, but a partnership between levels of government. If one of us, one of the Major Players takes a walk, something tells me you are not going to be able to finish the equation. You know more about that than i do. I was just going to jump in and add that i do think it goes both ways. We also see a lot of gridlock at the local and state level. For major infrastructure initiatives that would add value not only to these regions, but to the country at large. I was thinking of the example, we hear so much about the new court in charleston, that it is just gridlock over the permitting and things. I do not know if it is an anecdote or true, but if it is true, it is shocking. It is taking longer to get these permits to do the digging and things than it took to build the entire panama canal. Situation where every locality and state could block the national highway system that enables us to go from coasttocoast in our transportation. I agree 100 with tom on the investment issue. Also, this hermit inc. And this permitting and regulation that gets us so far down, that is something that we need. It is really dangerous when you look at the electric grid. That is a case where a country like brazil, again, they have a national grid. Course, we do not and we saw the consequences of that with the devastating storms and things in new york. I think that this is where the governors can also come together and step up and do some big things that would impact the overall nation as well as their state and local issues as well. Rex jay, you wanted to jump in . One of the things the states can continue to do is innovate. Lets assume that we get a bill done before the money runs out this summer. We are going to be using the old system, the old model. Whether we increase the gas tax longterm,is not a sustainable solution to our problem. You look at virginia. Whether you like what they did or you do not like what they did, they were willing to think outside the box. Other states are doing the same thing. Those ideas need to come to washington to be considered whenever the next bill is accomplished. I am looking forward to camera leadership on this issue. There are a lot of other associations that are part of the dialogue for the future. We need to get over the hump right now and put everything on the able for future years. We have a question over here in the back. Covering free transportation, supply chain, trade. I will see if i can wrap three things into one question. You are starting to sound like a white house correspondent. [laughter] talks about educating congress about the need for infrastructure. More and more, it seems like most lawmakers get it to get it. Isthe end of the day, it these other outside political factors that influence things. How do you get beyond that when you have a lot of movement for Smaller Government and no tax increases, how do you get to some funding mechanism when the ideologies are set in stone . Some if States States are taking on more investment on their own. They do not want to wait for the federal government. Some states are advancing some money for port deepening. I guess the whole question of devolution is that a catch22 . The forward thinking states, they start investing, and that is a good thing. On the other hand, are they sending a message to congress, they are going to do it so they do not have to. Lets start with the ideology question. The rise ofeal with a very antispending political ideology on capitol hill . Give us some hints on how you tackle that. Is all about education, educating the American People to register, to follow their votes with their members of congress, and we do that at the nam. Ourot only work to educate 12,000 members and the millions of employees that work for them, but also the general public on these issues. We have an obligation as a business community, as well as labor and others, to let folks know what is at stake here. It gets very frustrating for thisacturers to have skepticism coming from certain quarters of congress about a basic function of the United States government, in the way to overcome that is through elections. We have seen some of these primaries take place where more reasonable heads are prevailing. Is an awareness now among the American People that extremism is not going to create solutions, that there needs to be two sides working together to get the job done. We are going to continue to work on that, we will continue to register people, to work with other associations like the 240 council of manufacturing associations to get the word out. The question on states, and whether or not the state picking up some of the slack from the federal government, what message is that sending to people in washington . It is an encouraging message that the american system still works. And i believe that the comments that were made before is that politicians inul oyrs oftem are ma challenging cities and governors. We will see a lot more of that over time. Tot simply sends a message the politicians in washington, if you want to stay as relevant as you want to be, you better work really hard on the part of the system that you have control of. The Commerce Clause is argued both ways all the time, and i have a few on it, depending on what the issues. Only issuenot the where we will see action at the state and local level, and to teach lessons to washington. It can be one among many. I see that happening across the board. If somebody mention that one of the characteristics of the public is looking for for those that will vote in 2014 is, will the candidate work with the other side to get past this gridlike . What is disappointing to me is when you go past that topline question in the poll, people want their candidate to work to get to their position, not necessarily just worked actually compromise. Ground up,from the which is why we need leadership, to go beyond what people are thinking as a kneejerk reaction and talking about and show action in trying to get consensus on important things like infrastructure. About out oft time, but deborah, i will give you the last word on this. Also on some of these questions that weve been talking about today. Where do you think this conversation goes from here . I would add on the states, in addition to governors and to thinkt is exciting what some of the regional associations of governors are doing, cause increasingly you really cannot talking about states as much as economic regions, and so they how they come together, that is usually cross party lines. In terms of where we should go from here, we have a Great Coalition that has come together here. We know we have to move out in both the educational arena as well as building this Business Case for why infrastructure is at the heart of our nations future competitiveness, job creation, innovation. And i think again the opportunity is now. It is not later. The extent to which we can begin to put together an agenda of the near term, medium term, and longterm things we can do will be very powerful, and National Infrastructure week, i hope it is the first of many. Terrific. We have now reached a part of it where a produce he will be screening wrap in my ear. Thank you very much for talking about this. A fascinating conversation. And thank you all so much for listening to it. [applause] all right, ladies and gentlemen. We will take a 15minute break so you can refill your coffee, water, juice, whatever it is youre doing. These keep an eye on the monitors. We will call you back in 15 minutes to hear from a great panel on international competitiveness. [captions Copyright National cable satellite corp. 2014] [captioning performed by national captioning institute] 8 00,less than an hour at a conversation from the Terrorism Research center at the university of Southern California. We will hear from current and former Homeland Security officials and the new York Deputy Police commissioner. Here is a look. Water supply,bout the poison in the milk, in the calais. They sit around up at night while we are tossing and turning thinking about what they are thinking, and they are thinking about i need to kill people. I need to have the streets running with blood. I need people running and screaming. I need it on tv. I am not worried about causing a blackout. I need people to die. Terrorism is theater. It requires a storyline that needs a big dramatic scene. In thes that story arc big scene, the money shot, involves blood and bodies, and that is what they are thinking about. They are not thinking about the grid. You can see this entire conversation tonight at 8 00 eastern. In addition to the new York Deputy Police commissioner, we will hear from Michael Chertoff and the administrator for the Transportation Security Agency john pistole. Each issue should be handled for late, but i have a general philosophy. It starts with the basic premise which is economic freedom, my guiding principle, and from that comes factors. Does the commission had authority to act on a particular issue . What authority has Congress Given to us . Isre herman that were there harm that we can remedy . Is the solution tailored to the particular problem we are addressing . Even with all those three elements, do the benefits of regulation outweigh the costs . Eachis how i approach issue individually, but either take, we tend to take each as it comes for you. The new fcc commissioner tonight at 8 00 p. M. Eastern on cspan2. Anthony fox said the Highway Trust Fund will run out of money by the end of the summer, meaning roadbuilding. Across the country. He called on congress to find money to Fund Transportation mark critz. Jects. Nsportation pro his comments came at todays white house briefing. Good afternoon. Thank you for being here. Welcome to your daily briefing. As you can see i have with me a guest star, secretary of transportation anthony fox. He will talk to you at the top about the report or analysis that many of you are see the earlier today on the critical need to invest in our infrastructure, to help build the Economy Today and in the future and in doing so create firstclass jobs across the country. As we normally do, i would like it if you would hear what he has to say can address questions on andsubject matters first, then when that is done, we will let the secretary go and i will be here to take questions on other subjects. With that, i give you secretary fox. Thank you, jay, and thank all of you. I would like you to be here celebrating the work that is happening around the country to reinvigorate our nations transportation networks. Unfortunately, this may be the most dire moment the American Transportation has faced in decades. As soon as august, the Highway Trust Fund, the account that pays for building and repairing our nations roads, will start bouncing checks. To 700,000resss, up americans will lose their jobs over the next year. Bridge building, transit maintenance, all of these types of projects may be delayed or shut down completely. Means freight will not move, which means trade will slow, which means businesses will not hire. And by the way, your morning commute will be longer because the road youre driving on will crumble and no one will show up to fix them. We are starting to see it happen. In nashville, four bridges carrying 100 30,000 vehicles a day have reached the end of their useful life. One of them has been shut down three times since last summer because concrete keeps crumbling on to the underpass, threatening cars below. We have and if infrastructure deficit in this country. Forave been saying that months now. According to the American Society of civil engineers, we investment,illion and that number includes things other than transportation, but by the this investment time our decade is through in order to raise it to an appropriate level. Number. An allin we cannot meet the needs of a growing country and a growing economy by simply maintaining our current level of effort. We must do more. Over the next generation, this will become even more apparent, because the country will demand more of its transportation than it ever has. By 2050, the system will need to boot up to 100 million new people and 14 billion additional tons of freight, almost twice what we currently do. Even if Congress Today funded at Transportation System at recent levels, he would still be on the same tract the same track to a slower nation where rushhour becomes a rush all afternoon. But we need right now is to rally around a set of ideas that increased annual investment, speed up a rating and review systems at every level of government, and ensure future transportation projects to even more to grow jobs today and long into the future. That is why little over a week ago the administration sent the grow america act to capitol hill. Todid this to bring ideas the table. It will do more than just level off the Highway Trust Fund. It would substantially increase annual funding to help us relieve congestion can alleviate freight choke points, and create jobs right now and long into the future. We believe there is a lot of room for agreement around the ideas in this bill. Investment,overall setting the global pays for safety, strengthening our freight networks, streamlining the permitting process to get projects done faster, giving communities of economic interest and opening more opportunities for private capital to invest in americas infrastructure. These are elements of what a 21st century Transportation System looks like. We remain optimistic. For more than a halfcentury, broad bipartisan majorities have recognized that america must grow its investment in transportation. I believe we can do so again. I want to thank you very much. I look forward to your questions. Any movement to indicate there might be projects toward making that solvent question mark i am encouraged by what we have heard from the u. S. Senate. Senator boxer and several members of the Senate Committee is working on a proposal. I believe they have financed that proposal to become public today. It needs to be broadbased, bipartisan, and it looks like theyre are working toward that. We believe our bill was one that would do important things for our country, increasing investment in making sure our country is moving forward with projects at a faster clip than and ensuring that we are to relieve some of these freight choke points that will become problems in the future. What about in the house . I have spent a lot of time and shoe leather on both ends of capitol hill. What i can tell you is people on both sides of the aisle want to see something get done, but we are going to have to work at it, and this is going to to be a nineinning game. Is there enough time to rally around a longterm solution at this point, whether it is yours or senator boxers . Are we aware it is down to the crunch and there is going to be some stopgap to get through the summer . The reality is i can tell you what is happening in local communities in the states across the country is that the cumulative effect of shortterm measures is starting to stave off the pipeline of projects that this country needs to move forward. We urge congress to take a close look at our bill. We also urge congress to share their ideas and we are looking forward to trying to get there. We think this is something that needs to be tackled, it needs to be tackled so there is certainty at the state and local levels, but theyre also need to be substantial growth in our investment and infrastructure for us to move forward as we need to with so many more people and more goods that need to get someplace. What you think is the best solution Going Forward . On the good side the country is moving toward the coming the Largest Energy producer in the world. Substantialry improvement over where we have been. It is part of of the president has been working toward since he came into office. At the same time, all of us recognize that as we grow our ability to excavate and create more energy, we have to make sure that we are leading the world in safely and safely transporting that energy as well. As is why you have seen the u. S. To puttingke steps out an emergency order requiring shippers to edify communities when oil is moving through those communities. We also issued an alert that advised that certain type of oil not be allowed on certain tank cars. We set a rule over here, designed to address our movement of this material by rail comprehensive lee, dealing with speed and other issues, including new tank car standards. It will take a comprehensive approach. Well keep looking on ways to of ass this in advance role coming out. We work as hard as we can come as fast as we can, to get that rule done. We have had this discussion before, but how much of electionyear politics is stalling this in the house . I think the reality is this is a problem that has been boiling for some time. 27 shortterm measures just over the last five years that are impacting communities every single day. To the politics so much as what i can tell you, when you talk to state. Aate dot directors, there is concern about the longterm because the pipe on a project is getting slow. Duck,this will be a lame something that you are not get any movement on until after the november election . Our hope is congress will act as soon as possible and we hope that happens before the Highway Trust Fund becomes insolvent. Tocontinue to looisten congress as to when they want to take this a. Sures,rtterm mea we have got to stop doing that. What is the right combination of funding for the Highway Trust Fund if revenues are lower because of increased fuel efficiency . That is one of the reasons we have introduced a different mechanism. We would continue under our bill to use existing asp taxes asked taxes to fund the bill. The other half, which is what it generates, what we would also do is use probe Growth Business tax 150m to provide another billion over four years. We think it is important because because we have introduced new measures that have focused on what freight moves. We also think that we can do more to encourage states just like we want to improve the permitting time at the federal level. We need carrots to be able help wetes to do the same thing, think our solution is a good one. Transportation businesses . It actually could be broader than that. It could be taking some of the untaxed earnings that are overseas and plowing some of that internet infrastructure. A fixed like that would generate more than just what we are asking for transportation. It could fund 150 billion. One new pay for that is being is ad about in washington tax per mile on vehicles, getting rid of the gas tax. Is that something you are encouraging . It is not in our bill. We support the bill. [applause] do you support the tax per mile proposal . We support the bill. There are ideas that are out there at the state and local level. Of the crisismity that growth that it requires is to put into the system, we think our solution is the best one. It seems Like Senate Democrats are focusing on funding that would be about 50 billion less than what has been currently funded. Would that be ok for with you guys . Just spent the better part of a week going to eight states, 12 cities, large and small, and i have to tell you america has been waiting on a bigger solution. Whether i was in louisville, kentucky, or alabama or louisiana or dallas, texas, all these places in america are places that have long todo lists, and our ability to support those lists is being limited. In washington, there is a discussion about trying to get acting where we have been, let out in america, folks are trying to move the future and that is what we are trying to urge. What senator boxer and some others are encouraging i want to be in the position of encouraging the discussion and debates and progress because we have had such a run of shortterm measures in the past that progress is important. Make no mistake, america is hungry and starving for more infrastructure investment, and we have a responsibility to articulate that as an agency because america is growing, whether we are investing or not. We will have 100 million more people in this country, 14 billion tons of freight, and the long commute that you folks had this morning will be longer if we do not do something now. To a different subject, back in march the faa said there was an incident where a drunk a pretty close to striking a u. S. Airways commercial plane. Is the department looking at this . Is this becoming a bigger problem . Absolutely. By law, folks are supposed to notify air Traffic Control when they are within five miles of an airport facility, and that is a standing rule we have. This is also pointing up why we test siterd with uas programs this year. We have two of six and running. So we can establish broader guidelines in future to avoid these types of incidents from happening. Two questions. How do you feel about the possibility of more toll roads, decade inome previous a previous administration, that proliferation of earmarks, what kind of reassurance you think you folks that a broader transportation will not lead to earmarks . On the first question, theres been a lot of interest in the toll issue. That is not how we pay for our bill. We pay for it with progress business actual for. We think that we have to of a multitiered approach Going Forward to tackle the larger infrastructure deficit the country faces. Think about it this way we would put a fouryear proposal on the table. In addition to that we would work with not only ourselves of the federal level, but states to try to accelerate permitting process and review so that more value could be captured for the dollar. We also would create more pathways for publicprivate partnerships in a variety of ways through tifia, through riff, to get more private capital invested in american infrastructure. In that context the tolling iece, what it basically does is it enables a governor, if they decide they want to to apply to the federal government and to have a decision made based on whether they are using that toll revenue to improve the facility that they are using or to relieve congestion, and then at that point if it is acceptable with dot, they would have more capability of doing it. It is not a free for all and not the way we pay for our bill. On the broader question to reassure that this does not turn into an earmark down the road, to make sure that proper projects get funded . I think the issue is that we got to grow our investment first. The methods and means by which objects can done and delivered in most cases is going to be the usual way to the formula programs we have existing. Our proposal would introduce a more competitive or graham, but those will be merit based programs, not ones that are portbased. Taxalk about progress reform generating over 150 billion. The house passed a 150 billion Corporate Tax. Addsenate this week would 85 into the deficit. It seems like they are going in the opposite direction, to something that would generate new revenue. Is the administration going to the band that Congress Deliver something that generates that new revenue for transportation . I would point out the very day that the framework that we have backing up our bill was announced back in february, the republican chair of the house ways and Means Committee dave camp introduced a proposal to use Corporate Tax reform to pay for in part infrastructure investment. This does not seem to be an area lacks bipartisan interest. It is just that we have to play this out and work hard every day to make progress on it. Do you have any idea if you lose some hundred thousand people because of lack of funding, to what extent might that affect gdp for the u. S. For this year . I am sure it will be negative, not only for the jobs that we lose, but what we lose in the course of losing projects. Our country is one of the big we are having some of a resurgence of Manufacturing Activity in this country, more than we have seen in the last 15 years, is because one of the things we can claim is we have a safe Transportation System. And the more we put that at risk by not aching the kind of investments we need to make as a country, the more challenge we are going to be longterm and we are going to lose opportunities to grow jobs in this country because of the indecision. Last one. This is certainly offtopic. Tomorrow the court of appeals in charlotte will hear arguments on hassex marriage which an impact on north carolina. Yourave never expressed ideas on this. Marriage. Rt samesex who someone loves should not be an issue at work or anyplace else. And i was as a mayor the first mayor to even go meet with the lb gt community. Ti r uju qqt obama directed his team to support the nigerian efforts. I report to you, our Interdisciplinary Team with representatives from the state department, deputy of defense and fbi are up and running and our embassy nitrp is helping to support the Nigerian Government. We continue to work closely with our international partners, our international partners, and france. I wonder what the white house reaction is to this sale and whether the white house feels sanctions in the ukraine. I dont have a specific reaction to that report. What i can tell you, we worked very close well our European Partners and our g7 partners on a coordinated approach to escalating the cost to russia for its approach to the challenges in ukraine for transgressions with the International Law, the legal annexation of crimea. You have seen the United States and our partners in europe and our partners on the g7 take significant actions to impose sanctions on individual and entities. That effort continues today. You saw the e. U. Actions that were announced and the e. U. s clear support for elections on may 25. You seen from our people allies, comments that clearly support the position that the United States holds which is that any attempt to disrupt those elections on may 25th in ukraine will be met by more severe sanctions. That is something our European Partners support. You have seen that the way this president approach this. To make sure that the actions we take have a broad and russian officials understand that the escalation of efforts to destabilize ukraine will be met with an escalation cost. Urj obviously very difficult for partners as this sale makes clear. Im wondering how confident is the white house that partners atitaatahao time wrap sanction . I would point to statements of european leaders that underscore the broad support that exist in europe for the position adopted by the United States. Which is we are to Work Together in a coordinated fashion to impose high costs on russia if russia takes actions in ukraine. Youve seen that already. Youve seen that coordination to this date. I expect you to see if russia continues to engage in activities that undermine stability in ukraine. That in any way undermine implementation of elections on may 25th. Theres ample evidence to support that position. Getting back to the u. S. Team in it nigeria, last week, you mentioned theyre well versed when it comes to hostage situations and intelligence expertise, just curious, has that team scoped and b oaden any way since last week in light of first ladys comments over the weekend . Social media push from the white house . I think from the first ladys speech over the weekend as well as her address over the weekend as well as what the president said and members of the administration have said. Understand that the president and first lady and others believe we ought to be doing everythihe we can to assrau efforts of the Nigerian Government to find and free these girls. We are. The scope of this has been outlined. It includes military and Law Enforcement assistance as well as intelligence surveillance. We are actively engaging in that effort. I think its import9q to know that when we talk about assisting in the effort to locate the girls, were talking about helping the Nigerian Government search in an area thats the size of new zealand. Its certainly not a small task. You talk about surveillance, where we talk about currency and assets. If you ask the department of defense, they can provide more details about the assets being brought to bear. We can provide more detail what the competition, i can provide more detail on the com osition. Here it is. There are five state Department Officials including a team leader. Two Strategic Communications experts, civilian security expert and Regional Medical support. Ten department of defense advisors who are in nigeria. Four fbi officials with expertise in safe recovery and preventig future kidnappings. Surveyor digging in on the search and coordinating closely with the Nigerian Government. We want to do whatever we can to assist that effort. This sounds like a bit of a ramping up resources since what you described last week. Something changed in terms of you just didnt what you were doing last week. Was it maybe a recalculate jim, in fact, the offer of support was made. It was accepted. The idea of standing out Disciplinary Team was presented and accepted. That team is now in place. It includes the ability to provide intelligence, surveillance support. Im not going to get into detail what is that support looks like. That was always in vision as part of the broader effort. That means im not going to get into details how that support is supplied or what technology might be used, if any. We have teams in place. The individuals i just listed who have expertise in these matters and can provide the advice and assistance to the Nigerian Government that we offered and they accepted. When the first lady made her comments in the weekly address on saturday, was there a conversation that was had here in the white house about just how to ramp up attention and draw more attention to this . Was that why the decision was made for the first lady to go out and make this presentation . As i think you saw from both the weekly address and to her communications via twitter on this matter, she is deeply concerned as is the president about the fate of these girls. Broadly concerned about what these girls represent in terms of power and poshes of making sure that girls around the world are educated. The opposition to allowing girls to get the educatqjz that they deserve is opposition to progress. Opposition to economic empowerment. Opposition to health and security for million and millions of people around the world. This is a profoundly important idea. These girls are suffering specifically and individually but they are also suffering on behalf of a broader proposition which is that whether youre a girl or a boy, you should have all the rights to education that can be obtained in the country in which you live. Considering the current situation, how much closer is it because the leading candidate is currently the investor. Ukraine hasnt slowed things down. I dont have any comment on short list or candidates for any position thats currently in need of being filled. Except to say that, position like that is one that the teams in place to review personnel decisions, act aggressively on. That we will move on when the time is right, when everything is in place. [indiscernible] i think we have an Excellent Team in moscow. I dont believe thats been a hindrance. The fact of the matter is, because of the crisis in ukraine, we have more high level direct conversations between u. S. And russian government officials probably in a short period of time than its been had in a long time. President putin and president spoken frequently. Secretary kerry have met and spoken frequently. Unfortunately, russia has against the will of the international community, the United States, the european union, the g7, pretty much most of the world have decided to engage in practices that violates International Law that violate a sovereign nations territory integrity. That seem to seek to destabilize the free and fair president ial elections that have been called in that country. I can tell you on this personnel matter, it will be acted on as soon as the president is ready. When its clear, starting to implement healthcare law, the website, the white house decided to send an emergency team, outside group. Anything under consideration to do the same thing with the v. A. Considering the crisis appears to be a lot worse exponentially . Coming in and trying saying if you not going to get rid of the correct team sending in some emergency . I dont have any Personnel Announcements to make on the v. A. Except to say that, the president takes the situation as he has said around the Phoenix Office very seriously. Thats why he directed secretary shinseki to investigate. The secretary invited the Inspector General to conduct a comprehensive review. The president remains confident that secretary shinseki focus on this matter. Hes confident in his ability to lead the department to take actions based on the findings. On a broader issue, i think, its important to note that this administration with secretary shinsekis leadership has aggressively addressed the challenges posed by the backlog at the v. A. Backlog that was enhanced in its size in part by the decision to have predisposition towards acceptance for those who would have claims over agent warrens exposure and claims over ptsd. The issue in phoenix is actually has to do with lying about the backlog . I think that the numbers broadly reflect an aggressive approach. That includes [indiscernible]. Youre talking about an individual matter that is under investigation. We take it very seriously as does secretary shinseki. We look forward to a full review by the independent Inspector General. Since the beginning of the fiscal year 2014, 759,724 claims have been completed, which is 162,831 more than the number of blames completed this time last year. Which shows enhanced focus and dedication to providing our veterans with this service and care they deserve. Its been longer than that. This is obviously a challenge that has been long in the making. Thats a broad issue. [indiscernible]. We got to get i dont have any Personnel Announcements, chuck. What i can tell you, were very concerned about the reports. We look forward to the independent i. G. s. [indiscernible]. I dont any Personnel Announcements to make. John. Do you think that the v. A. Done a good job addressing this issue of backlog claims over all . I think that well, john what i would say is that, v. A. Has aggressively addressed the challenge posed by the backlog. Backlog that was put under considerably stress by the correct decision to recognize those with claims related to exposure to asian orange during the vietnam war and those with claims related to ptsd with iraq and afghanistan wars. It was the right thing to do. Sense the High Water Mark in terms of the backlog, especially those claims that have been waiting for more than a certain number of days, there has been a substantial progress in the reduction of the size of the backlog. I dont have all the data with me now, i can assure you the number i did just provide to you demonstrates that this has been something that has gotten the attention of obviously secretary shinseki but also the rest of the administration. Its something that president feels very strongly about. To chucks point, the issue in arizona is it seems there was a cover up to try to hide the true size of the backlog. We dont know if that was something just went into arizona and if it happened elsewhere. Are you confident that you can trust the statistics that you have . In fact, v. A. Has made as you said, progress dealing with this backlog. At least in this one instance suggestion is that the numbers may not be right . I cant prejudge obviously. Review is being undertaken with regard to a specific office and allegations around that office. What i can say is that yes, we are confident there has been significant progress made in reducing the side of the backlog. That has been a focus at the v. A. And of the entire administration because of the fundamental conviction reflected in the fact that the presi÷ent made sure that the funding increased through the v. A. Throughout his time in office. That we have a commitment to our veterans for the service they provide to our nation. That includes especially our wounded veterans and disabled veterans to need the care. Two other quick ones. This issue of the memos outline legal case for using for targeting american citizens for drone strikes, it do you have a response to the calls from senator rand paul and others to make those memos public . You offered to show them in a classified setting, will you release those memos publicly . What i can tell you is a couple of things. First on the senator paul oped which he does call for the memos to be made available to senators. We have made them the memo available. The memo in question available to members. He also called for the public release. What i can tell you the Justice Department is reviewing the Second Circuit opinion on this matter. I will refer you to them how theyre evaluating their options. c the Justice Department is reviewing that and thats something i would refer you to them on. But it is the case. Its an important point to make that for all the senators who would vuj q judicial nominee, the memo has been made available for any of the 100 u. S. Senators to review. When it comes to the nominee himself, david barren is exceptionally qualified. Hes a former Supreme Court clerk. He will bring outstanding credentials, Legal Expertise and dedication to the rule of law. The administration was working to make sure any remaining questions members of the senate have about mr. Barrens legal work. As i mentioned last year, members of the Judiciary Committee had access to the memo. We are confident he will be confirmed to the first sector how many memos are there in which he was a principle author outlining that legal case . Theres one memo in question that i have referred to thats been made available to u. S. Senators. Are thern others . Are there other memos, he drafted . I dont know. Theres a memo in yes subject to the Second Circuit decision. I know that memo has been made available to all u. S. Senators. One more. Sense 2007, they being the republicans, have filibusterrered about 500 peaces of legislation. Do you stand . 9di90tyc. Areni theyni using technologa asninr i mentioned earlier,nr jtnin rvestigations [ equipment they might beni usingr what specific resourcesnionr te zringing to bare there toco advi andni assist the Nigerian Government. niconi ninininrnrconi inni the south he wasniconr t whennzinr younini have crisis, r people looking for somtau at they can lookconini up to. ni how ani person herenr who escapa blockade. He devastated union commerce. nro and that is exactly what they did. Abouts weekend, learn mobile, alabama. Eastern on 5 15 p. M. Cspan2. In a few moments a forum on the face of terrorism, including remarks by Michael Chertoff and john pistole. In about two hours, we will look at the history of select committees, similar to the one toablished last week investigate the terrorist attacks in benghazi, libya. Americascussion on aging infrastructure. A collection of interviews with some of the nations top storytellers. My parents migrated from the south to washington. My mother from georgia, my father from southern virginia. Washington was where they met, married, and had me. Without the great the gratian, i would not be here. Ive lived with that all my life. I was surrounded by the language, the food, the music, the ambitions of the people who had migrated from the south. It has been with me all this time. Unique voices from tony five years from our conversations, sundays at eight. Ewings is a reporter from politico. Why such a large increase in one year . Say is the officials there were many more smaller terrorist attacks. Although there were fewer egg experts callm spectacular attacks like that 9 11 attack, there were more smallerscale bombings or shootings or attacks that took fewer lives individually, but collectively wound up with an increase from the year before. What does the report say about the state of al qaeda worldwide . The core of al qaeda, the organization that attacked the u. S. On september 11, that was based in afghanistan and pakistan is pretty well on its heels. They have succeeded in killing and a lot of it solutia. You have destroyed its ability to control terror attackers there and against western europe and United States. The franchises of al qaeda that are moving west and south to yemen, africa, north africa are as dangerous as they have ever been, and officials also say they are worried about a large number of foreign fighters taking part in the civil war in syria who are coming from all across the place, including the u. S. And europe and learning terrorist attack skills and becoming more radicalized and could pose a threat to your and the west as those fighters slip out from that conflict to their home countries. Department report says fewer americans were killed and 2013. How does that square with the increase in terrorist attacks overall worldwide . Well, american counterterrorism agencies including the at the eye and parts of the Intelligence Community have gotten a lot better at disrupting and intercepting attacks inside the u. S. They are always cautious about proclaiming victory, but they do say that in terms of organized events that could attack a place like a sports stadium or a shopping mall, they are effective at stopping those before they start. Where americans have been killed and targeted are places that are tbeds foro terrorism. In terms of recent attacks by boko haram, what are you hearing . The consensus seems to be and other africanbased organizations are dangerous locally. Ability toess of an attack western europe or the u. S. , but one of the reasons why the state department and others want to get involved with combating those terrorist networks in africa is to keep them from growing into the kind of organizations that the old al qaeda became in 2001 that had the ability to touch the United States in a very destructive way on those 9 11 attacks and the ones that took place before against the u. S. And the seas in east africa, the destroyer u. S. S. Cole, so getting involved today, stopping them today well help them prevent largescale attacks. What does it mean in terms of al qaedas future. Future . I do not know if the u. S. And snufflies will ever out al qaeda altogether, but if you can keep it from organizing with terrorists and becoming dangerous, that might make not to much difference. The core of the leadership is located in pakistan, and some pakistani insurgents have ties to the pakistan government, so it is a delicate needle to try to thread for the u. S. And its allies to go after al qaeda, extremists, and keep what at times has become a Stream Partnership with pakistanis. I am not sure that they will get to 100 success, but they will continue to like to try and continue to press the pakistanis to go after terrorists. How do the pentagon and Homeland Security use this report in the planning . Insideaving a baseline the government of what constitutes a terrorist attack. The state department changed the methodology and little bit about that. Also having a a sign of how many to raise and in what regions there is the most danger of terrorism, and then they can apply their own policies based on a baseline. Mostly on the u. S. And its borders, and the Defense Department prosecutes terrorists and overseas and it ever cap. Is a senioring correspondent at politico. Thank you for joining us. My pleasure. Anwe want to take you to event now with Michael Chertoff and john pistole who spoke at the National Center for risk and Economic Analysis of terrorism events. It was started in 2000 four at the university of Southern California and is partly funded by the Homeland Security department. Thank you for those very kind words of introduction. Under secretary, thanks for your comments about what has been achieved. Tois a powerful testament the vision that congress had when it authorized these centers of excellence. I think the promise of this has really been borne out. It has been over 10 years since september 11, and it is now the 10th anniversary of the founding of create. 2007, as some of you will remember, i had the great earlyre of speaking here in the life of this organization, and even then i was very impressed by what was being done, but even more by what was being contemplated. What i would like to do in my remarks today is talk a little bit about the value that you bring to the Homeland Security enterprise, which is not just the department of Homeland Security, but also the organizations that are part of what protect us in the United States. And then to put that in the context of what i think are some emerging threats and challenges for the next 10 years. One thing is clear the threats are not static, our ability to anticipate them and manage them cannot be static either. They will continue to be areas , development, and analysis that will require cuttingedge thought and innovation if we are to keep the in an increasingly dangerous world. This institution is going to be at the forefront. I also want to acknowledge the dignitaries who are here, i think it is a great reflection of the esteem in which this organization is held. You have john pistole coming, dan gersten, and other Senior Leaders of the department of Homeland Security, and you have got a great collection of academics as well. Andhat are the core values the core mission of annuitization like this of an organization like this . It has four elements that have a critical that make it a critical part of the Homeland Security in a price. First is risk ivanbased thinking. Iwill tell you that both when was in public life and private life, many people do not understand risk. People think risk is about elimination of risk, that someone ought to guarantee you that nothing that will ever happen. That kind of thinking often leads to either. Disappointed to either disappointed expectations. Having a riskbased methodology that manages risk, that is able to understand, analyze, and explain how to manage risk and also to allow you to make the tradeoffs necessary to achieve risk within a reasonable cost framework, that is the central, if Decision Makers and the public at large are to have a Firm Appreciation of what can be cumbersome in the area of Homeland Security, but also no illusions about what to expect. A second key element about what is reallyll create curis data analysis. Many of us think we have intuitions about where the threats are or why they arise. Some of them may be right or wrong, but if they are not backed up by data and research, they are not useful in decisionmaking. The ability to collect, analyze, understand, and operationalize data as this institution has been able to do over the last 10 years is critical to intelligent decisionmaking and wise allocation of resources. A third part of what i think is unique and important about it this institution is the ability to put the decisionmaking about Homeland Security in the context of economicbased thinking. To put it another way, how do we get the maximum return in reduction of risk for a reasonable investment . It is always about costbenefit. If you have a limit of this amount of resource limitless amount of resource, you could create a risk free and garment, but nobody lives in that world. In fact, now more than ever, with much constraints at the federal level, at the state level, with an economy that is fullness ofin the recovery, people more and more ask themselves, can we afford to protect ourselves . And a tradeoff, the costbenefit analysis that you provide them comes critical in making sure that with constrained resources we can get the maximum value in terms of security. Have anportant to interdisciplinary approach as you have here as is evidenced by the fact that you have a school of engineering and a school of Public Policy sponsoring this. Theory no one scientific or one discipline that covers all of the issues you do with inhome and security. There are critical engineering issues, mathematical issues involving predictive analytics, but also sociological and psychological things that have to be studied to really understand how things work. One of the interesting things about Homeland Security as a , unlikent function is the Defense Department or the military, where you either command everybody that you are realing with or you controlling them in some fashion or killing them, you have to enlist civilians. Most of the major muscle parts of Homeland Security involve people who voluntarily are leaning to submit to the roles and get sufficiently educated in what is required in order to be able to comply. That is a very different kind of ll van controlling the domain and gnashing it. It is about understanding human psychology and sociology. We have seen a lot of value. We have used at the department of Homeland Security in the your studies areas of demonstrating economic value of Immigration Reform and how it has a real impact in a positive way on our economy. I know in california the armor how gardens have been used for smart randomization of checkpoints. It is an efficient use of resources. In terms of the application of grant funding, we relied upon some of the work done it here in terms of maximizing the value of how grants artistry did so they are done based on what manages risk and not what is politically expedient or looks good to the layperson or where it seems to satisfy some kind of intuition. We know that the efficient use of resources is in fact one of the pillars of Homeland Security. In 2007, when i spoke and made the time to the fact of 9 11, shortly thereafter, Osama Bin Laden himself argued to his adherents that by causing a huge amount of economic damage and forcing a huge expenditure of money by the west in response to an attack that was basically funded with 500,000, he was really leveraging economic power to damage and destroy the west. That was a clear message that if we did not construct a Homeland Security enterprise that was rigorous and economically based in a way that would not actually destroy our economy, we would each conceding to bin laden and his followers a victory. I was in our mind in 2007 when i came here to speak, and i know that your leadership role in pursuing this philosophy is still a very important part of what the department of Homeland Security hopes for and expects from the centers of excellence. So now i would argue that we needs this even more than ever and we are in tough budget times. That means that the poll for money that is available becomes for money that becomes available becomes stronger, that competing demands become more urgent, and that brings me to the second point. The reality is the public needs to understand that in fact we are not wasting money on Homeland Security phantoms, but there is rigor and logic and data to support what we do. I will be honest with you. We live in a time now where some of the public support for Homeland Security has diminished. In some ways that is to be expected. If you think about it, theres now a generation of people, many of whom are going to school here, for whom 9 11 is really not a vivid memory. A were children when happened. They do not number as many of us do with quite an acute recollection what it was like that day as it unfolded. That means the natural emotional fromrt for preventing it happening again is not quite there. Greaterhat, theres a skepticism for government, and were struggling with the legacy of a difficult economic crisis, all of which suggests there other problems and concerns that have to be addressed. As one more than ever in a world in which i think we do have the abilityanger not only to conduct research and analysis, but to explain it in a way that is clear becomes a foundation of being able to continue to build on Homeland Security successes we have had. The successes themselves are part of the challenges we face. No one would have believed in the weeks and months after 9 11 and we would not have another really major attack on the United States. We have had some close calls. To a reminded, talking reporter recently, and i mentioned the august 2006 airline bomb plot, where the al qaeda adherents in britain had the plans to blow up about a dozen airliners going from heathrow to north america. The reporter does not know what i was talking about. That told me that a lot of time has passed and people has forgotten people have forgotten a lot, and we need to explain to them that we have not had an attack does not mean that we have no threat, it means that we have used the kind of innovation and knowledge that you brought to the table in order to prevent attacks. That becomes a little bit of a problem in terms of sustaining support. What do we face Going Forward and where do we need to be looking for solutions and innovation in the next 10 years . Will point to three things. No doubt you could find 30 more. We have the eve falling challenges that we need to consider. The first is what i call al qaeda 2. 0. The next call it 3. 0, evolution of al qaeda as a terrorist organization. It is quite true that the core of al qaeda, the original cadre that was responsible for 9 11, has largely been eliminated. Either they have been killed as in the case of bin laden or have been captured. That does not mean al qaeda has gone away. What we are seeing is a new thaton that is now has now passed the size can become more of a franchise operation, and has spread around the world. Their strategies may be different. They may no longer look for the in 9 11 orent like Something Like the august 2006 airline plot. They may be looking for multiple smaller events against softer targets. We saw that in mumbai in 2008. We saw attempts to carry out attacks like that in times square and in the new york subway over the last several years. You seen a couple of successful attacks, including an attack as a lone wolf at fort hood. A much moreing with difficult strategy to deal with, perhaps with lower body count, but with lower signatures and therefore different kind of thought processes. Frankly, terrorism that is much more Community Based and requires much more state and local intelligence and awareness to identify incipient threats that are not going to be revealed because of spies and satellites that are somewhere over waziristan. In addition to that change in strategy, we are seeing new platforms from which terrorists can mount attacks. We have known for some time that yemen now is a center of bomb making. We have had some sophisticated efforts to try to get bombs into the United States. There was the underwear bomber, and then there was the effort to goingmbs in printers ever to be placed on cargo planes. Technologicalthat ability of the terrorists refined through years of creating improvised expose of devices will continue to remain a threat, and not only do we see this problem in yemen, but we have seen a spread of al qaeda into mali, niger, similar affiliated groups in nigeria. These pose a threat to american interests overseas, but also create possible launching point for attacks against us here in the United States. To two other areas we need be thinking about as we go forward. First, we look at pakistan. Pakistan itself struggles with the taliban, and there are certainly forces within pakistan that have sometimes aided and abetted and supported terrorist groups. We saw that with respect to the 2008. Attack in what is particularly concerning as pakistans struggles in some ways as a state with weak governments is the fact that it is a nuclear state. And therefore, one has to at least aat possibility at some point that Nuclear Capability could get into the hands of either toernment that was hostile the United States for some segment or part of the government that wanted to use those weapons in a destructive way against the United States. That means we cannot simply rest on what we have done so far in dealing with a Nuclear Threat dndo capability. We need to think about a threat that could become quite real in the next 10 years. Another area we have to watch closely is syria. Some of you will remember in the 1990s, chechnya was a recruiting and Training Ground for extremist radicals who came from europe, learned how to fight, and then went back to france and germany and other places and carried on the terrorist struggle over there. Or recently, we saw some somali toricans go to some only somalia. We made cases against them because they were plenty to carry the fight into the United States. There is now a fairly significant number of westerners who are going to syria to fight. Some of those will come back to the west. They will come back to europe and United States. They will have learned new techniques, tactics. Perhaps some of them will have evolved some experience with typical weapons. The ability to deal with these kinds of threats and these kinds of weapons of mass a structured and how do we identify these people and how do we track them these are going to be the analytic challenges for the next 10 years. Besides aler areas qaeda i would like to at least put on the horizon for you to think about. One is the issue of what i call the Insider Threat or violence from within. I do not know if i am imagining this, but it seems there is a significant uptick in the number of instances where individuals, not affiliated with an International Terrorist group, but motivated either by some kind of idiosyncratic ideology or i some grievance had quickly resorted to weapons or bombs to try to kill innocent civilians and tragically not in frugally in schools. We have seen that time and again. Weve also seen efforts to attack our Critical Infrastructure a few months ago. Ttack i powera station in california. There is not a public examination of the cause of that. It shows a sophisticated level of violence and a threat from within against a major part of Critical Infrastructure. Moreover, the episode of edward snowden, which is not a violent episode, but reflects a very substantial trail betrayal by suggests that we are now facing what is increasingly being described as the Insider Threat. People who do not have a record of criminal activity, you cannot necessarily connect them up to a terrorist cell overseas, but they are dedicating themselves within either a government enterprise or a private enterprise to actually do damage and the tray betray their obligations, either by revealing information or should not be revealed or committing acts of sabotagefrom within or Critical Infrastructure or cyber systems. How do we determine which insiders are a threat . How do we reconfigure our system for clearing people so that we are not simply replaying what we did in the cold war, but we are looking at how we detect the kind of Insider Threats that we face in the 21st century . Monitor whatage to goes on in an increasingly collocated world where data moves and all different places so we can allow people to exchange information, but not downloaded and sent it where it should not be . I would suggest the Insider Threat, whether it results in aolence or simply in compromise of sensitive information, is going to be an area of Homeland Security that is going to require increasing research, not just for the government him up but for commercial and private enterprises as well. Theyre going to be interested in knowing how they can balance protecting against the threatening insider with continuing respect for Civil Liberties and civil rights. I think in the area of cyber, you have seen the news if youve opened the paper, now finally i think the clear recognition that be the numbermay one threat we face here in the homeland. Some of these are criminal activities that cause serious damage to our economic institutions into peoples Financial Lives and reputations. Some of them are the theft of intellectual property. Increasingly, we may see the use of cyber as a way actually to commit acts of violence. We know for example that a couple years ago saw the saudi aramco was attacked by a a group supported by iran. We know that Industrial Control Systems and other physical infrastructure that operates based on the internet is increasingly forwardable to attacks and could cause not only disruption of service, but a a lasting damage to that Critical Infrastructure. It is about to get more complicated. We are entering what is now being described as the internet of things them which is the ability to connect Smart Devices over wireless connections into the internet and control them or monitor them from remote positions. The problem is that creates vulnerabilitys through which that people can hack in. If you Pay Attention to what goes on at the black hat conference in lost vegas, there been presentations about for example the ability to hack into remotely, when his medical devices are connected wirelessly to a monitoring station. They have demonstrated your automobile can remotely he interfered with through some of capabilitiesnstar they are built into modern automobiles. This is going to become a more serious issue as more and more devices in the home, linked up to smart grids, whether it is returns that order or smoke specter or your Smoke Detector or your television. All these things will be things that can be remotely monitored and in some ways compromise. How we think about the architecture and the tradeoffs involved in an internet of things is exactly the kind of challenge i think that an institution like this ought to be looking at. There is a technical dimension about the way the internet works from an engineering standpoint, but also a social logical dimension. There is an economic dimension. This in a way that allows us to get to the value and efficiency, but without creating serious amounts of damage that were that will not only cause a loss of life, but undercutting the value proposition. Bringing together these ciplines to look at that and you probably ought to get the lawyers involved, too