Committee examined executive branch nominations. At a senate hearing, witnesses from the trucking and shipping industry talked about the importance of freight to the u. S. Economy and the infrastructure needs of the u. S. Highways, courts and waterways. Senator and half chairs this environment and public works subcommittee. This is one hour 30 minutes. The meeting will come to order. We are honored to have some great Witnesses Today and i will save the introductions. I know there are a couple introductions that would be made from up here. This morning ill go ahead with Opening Statements were honored to have the chairman of the raking member. Then i understand senator cardin you have an instruction to make also. Will do that. Lets recognize first senator carper because he is going to be coming back and doing his a little bit later. Very briefly, welcome to the support hearing and i want to thank our chair and Ranking Member for putting this all together. I have a statement by the act to ask unanimous consent that appear in the record of have a chance to come back and give alive later this morning i will do that. Again, its good to see you all. Thank you for joining us. Thank you. We want to thank all of you for being here today, i would like to thank my friend and Ranking Member for his staff and the help in getting this hearing together. Ive taken count and i think the last was other than you and me that came in to this congress is retiring this year end that leaves you and me. I hope thats not a message. But anyway, we did come in and we spent a lot of time working together in a bipartisan way to accomplish things. I look forward to working with my colleague to benefit our Transportation Networks in the economy. President trump has shown a 3 growth in the economy with over 2 million jobs in the Consumer Confidence is skyrocketed. However, the economy will only continue to grow if our infrastructure is maintained, and expanded to meet our future needs. In 2015, over 18 billion tons of freight worth 19 trillion moved over highways, railways, waterway and through the air. These members and numbers are only expected to grow with an estimated 25 billion tons of Freight Movement by 2045 worth an estimated 37 trillion. Yet, when freight is delayed on congested highways, diverted around or awaiting movement in our ports, on our waterways, an estimated 27 billion annually increase costs. Airborne by businesses raising prices on consumer goods. The more delays we see, the further behind we become. According to the World Economic forum, the u. S. Ranks h in overall info structure quality and the American Society of engineers which we have heard several times from score infrastructure as a d earlier this year. Estimating that we need to spend close to 2 trillion in the next ten years to improve all of our infrastructure and our overall economy. In order to address this need, we ask congress to pass the fast tax and authorized 305 billion over five years. Fast act also established a 6. 3 in Dollar Program to invest in the free projects on the national highway freight network. Thats the first time that had been done. It has created a 4. 5 billion over fiveyear Grant Program to improve the safety and movement of freight. To know the fast act was the largest transportation authorization in the decade, we have more work to be done before we close the gap between us. We look forward to hearing from our Witnesses Today and enjoy meeting them individually and reminding mr. Parker that we and the state of oklahoma, our bestkept secret is that we. [inaudible] senator cardin. Senator inhofe, thank you for reminding me how long weve been here. I appreciate that very much. But, weve been friends since we both came to the United States congress in 1987 and i do thank him for his dedication, his willingness to try to find ways to move things forward, particularly with infrastructur infrastructure, he has been one of our great leaders. It is a pleasure to work with you on this subcommittee that deals with infrastructure with members of this committee. To date, the topic is critically important. Freight movement, assessing where we are now and where we need to go. This nation was built by the fact that we were able to build up an economy and our infrastructure was critically important for us being able to develop that economic strength that we all are so proud and gives us opportunity too so many people. mr. Chairman over the next 30 years our Transportation System that has powered to enable generations of Economic Growth could become a drag if we do not Pay Attention to investing in americas infrastructure. We already know how many hours a week are wasted in transportation from trucks stuck in traffic. Trying to get through a metropolitan area and even on the weekends is becoming difficult or in the middle of the night. There is some construction and took me longer than it should have to get home last night. We need to do a better job to deal with that. Trucks lose 28 million in dollars in wasted time in fuel per year. The airports face severe congestion, and the dams along the waterways, the ports dredging and modernization to compete in a regional economy, transit systems is 100 billion of maintenance of backlog and i could attest. The companies depend upon the Transportation System and how they feel these effects. But i do applaud the leadership of this committee to provide Funding Sources to build upon our success of this committee with the wherewithal to modernize the infrastructure. As a Ranking Member of the subcommittee mr. Thomas is here let me take that opportunity to brag about the port of baltimore. One of only four on the east coast that has the depth and width necessary to take on the new ships from the panama canal. To have a 50foot shipping channel. We look in the statistics, but let me point this out, this generates 13615 jobs directly with 127,000 are related to those activities. Responsible for 3 billion of individual individual wages and salaries with 310 million of state and local taxes, revenues. None of this can be done without a strong federal partnership. We cannot do it on our own. Yesterday we had a long discussion about the jobs report in the United States senate and we all know that investing in infrastructure will not only build the tools necessary to grow the economy but grow the jobs of the future that we need for the people of this nation. I look forward to hearing from our panel. Mr. Chairman, senator carper i would be happy to differ defer to you. I appreciate that. At that port is wilmington delaware my staff came so i could drop off a prop number one for importing bananas but also proves one prunes left left i will be happy to share them with my colleagues afterwards left left. [laughter] but on a serious note talk about the job creation with access of capital to foreign markets and infrastructure but all of the above and more. So there is a reluctance to pay for this and a big part of the challenge is to figure out the costeffective ways that leverage nonfederal monies and private sector monies. That is our challenge. It is important having gone through a tough period of time that when we tackle infrastructure we do at the right way and we do that together and we will do a much better job than we will amaze our friends. Before i introduce i would like to say a few words about todays hearing the subcommittee is examining Freight Movement where we need to go it is a vital part of the economy thank you for holding this important hearing. Everyone benefits across the bridges and roads the freight industry allows for americanmade products to go from the heartland to the coast and across the world this year to underscore the need to upgrade maintain shipping higher ways it is a bipartisan goal of this committee with the Public Works Committee has held seven hearings on modernizing infrastructure of both world and urban communities the value of streamlining to cut government red tape to get those building projects started faster. So taxpayers get the most bang for their buck. In january the administration will outline the broad vision for infrastructure with a unique opportunity ahead of us we will grow the economy to ensure the safety of every american we will work to improve americas roads, bridges, Water Systems dams and ports i would like to introduce chris who has served as president and ceo of the American TruckingAssociation Since july 2016 in a long time friend with extensive connections i am pleased he has offered his expertise. Attending college at the university of wyoming with his matcher bachelors and masters degree. Beginning his career with the senate in 1993 working as a professional staff member for wyoming staff member and then continue to go under senator enzi and unanimously confirmed by the senate with the United States department of labor. Serving as Deputy Representative with the Coalition Provisional authority in iraq awarded u. S. Department of Defense Joint civilian Service Medal and then was the honeywell international. In his current role he leads the efforts to advocate and educate on behalf of the Trucking Industry knowing how vital great transportation is to the economy and states like wyoming depend on the industry upwards of 7 Million People responsible moving for 10 billion month Million Pounds of freight annually. We look forward to hearing your testimony. I am very happy to be named the Deputy Assistant director from the for administration december of 2016 but he has been with the port now 16 years and has a distinguished record to understand all operations under his current responsibility to include maintenance claim and Terminal Operations and the intermodal religious tics so we are pleased with the expertise from maryland and better understand the challenges that we have to move the commerce and freight through the ports to receive the bachelor of science degree in the business administration. And those other two witnesses that have not been introduced and the chief executive officer and the Regional Council of government. And we will start with you and work across. Chairman and Ranking Member and chairman thank you for the introduction and members of the subcommittee i appreciate the opportunity to testify on this critical subject. We are grateful to recognize freight in the process transportation bill. As proven necessary to move 5 billion additional times over the next decade that is a 40 increase. This year alone, moving 71 of the nations freight tonnage, worth more than 10 trillion. The international Highway Network is rapidly deteriorating. Costing the average motorist nearly 1500 per year per year higher maintenance and congestion. Exceed 3 billion in 2015 Truck Drivers sat in traffic nearly 1 billion lung hours with 162,000 drivers 62000 drivers sitting idle for an entire year. 50 of highway fatalities the condition of the roadway is a contributing factor. The Highway Trust Fund will run short to maintain current spending levels by fy 2021 creating a huge funding gap to four states to cancel or delay critical projects. As the investment gap so also will the deficient bridges and the fatalities attributable to inadequate roadways. To build america fund to be supported with a new index . 20 per per gallon feed built into the price of fuel collected at the terminal rack to generate 340 billion of revenue so this proposal would stabilize the trust fund and the backlog but we recognize over time the fuel tax of diminishing Revenue Source so we encourage the subcommittee to implement a ten year plan to provide longterm stability for the federal aid program with a new more sustainable user fees. Recognizing trucks are but one part of the supply chain to rely on air and water and Rail Partners to keep it moving smoothly and efficiently and we are grateful for the resources provided specifically for freight projects and legislation. And to maintain the share currently dedicated to highway projects particularly the roads deserve dedicated funding created greater connectivity and more efficient and safer movement of the nations freight and finally to have the unequivocal support for strong federal role in funding to oversee highway improvements. States are not waiting on congress to act. Adopting funding schemes to pay half of the tab of the Highway Trust Fund we consider so schemes but a fleecing of industry. And with existing federal standards such as the rest breaks commonly referred to as the burden some barriers that are elevating safety risk to the motoring public while lining the public operators and trial lawyers. That would have been spent on driver pay and training to purchase safer more environmentally friendly equipment. It has allowed states to have added compliance cost to grow and support the nations economy making state preemption a top priority of trucking companies. This is not about states rights in support of devolving responsibility fails to acknowledge the constitutional obligation to support interstate commerce and those benefits that extend beyond jurisdictional boundaries. The gps heat maps tracks the movement of freight. These illustrations underscore how it isnt a local state or regional problem as much as rhetoric tries to suggest but a federal issue with serious economic and security implications i applied this committee for its razor focus a committed partner to help each of you and your Senate Colleagues produce the infrastructure bill in 2018 that republicans and democrats and the American People can be proud of. Thank you for the opportunity to testify. Chairman and Ranking Member thank you for allowing me to share my views. With the council of governments with the coalition of the gateway. And with that infrastructure as a metropolitan organization for the region has final authority overall federal spending on surface transportation. With the nationally significant bridge that is the linchpin on the i 75 trade core door that connects michigan to miami and carries over 1 billion of goods every day. But but it is suffering due to structural deficiencies and overcrowding. Around 750 million annually with wasted time and fuel. The common Commerce Clause with those interstate commerce 77 of all freight crosses straight state lines but they cannot shoulder investment to improve that. It is a down payment but more is needed to keep pace that as a percentage of gdp spending on what it does on infrastructure that formula dollars to have complex trade projects is limited recognizing this a muchneeded Grant Program to target large fray and highway projects and competitive programs encourage and incentivize not to get involved with 800 million in fy in fy 16 and leverage 3. 6 billion of total investment. Just because a project is more affordable to the federal government it doesnt mean it is the most valuable investment for a countrys economy. They should first be evaluated on the ability to meet congressionally Program Goals to sponsor strategic investment we make recommendations number one a National Vision that Investment Strategy should shape and guide the infrastructure system with coordination among states and regions and focusing on the intermodal freight should be established with policy with a significant project to provide a dedicated and sustainable Funding Source to have a much larger return on investment then other transportation spending those that are vastly oversubscribed in the first round seeing 13 request for every one dollar available a minimum annual direct investment 2 million above levels is necessary. Congress should eliminate spending it doesnt only move on highways that Public Benefit is derived in Public Investment should be made. Number three successful applications meet meritbased criteria to prioritize with a demonstrable contribution to the initial National Trade efficiency. Number four seeing a fast acting implementation to be aligned with congressional intent to be sufficient decisionmaking transparency. Despite congresses Development Strong enough meritbased criteria, gao was unable to determine the rationale for selecting the first round of 18 successful projects. Lastly a partnership with the private sector to Leverage Private participation with the largest possible funding options. The Advisory Council of system users could assist dot partnerships with the private sector. I think the committee for their time and attention to this critically important topic. Thank you. And also things for being specific as you specified five things