All right. Good afternoon. Im governor john hicken looper, the chair of the ngas economic and commerce committee. Its my pleasure to host todays closing plenary session. I want to thank all the governors for joining us. Making time on your agenda. This is i think going to be an exciting session. So lets get started. States continue to be the incubators of innovation and innovative policy. And no place is that more true than policies that states are pursuing to prepare for the nations transportation networks. As new and Innovative Technologies truly revolutionize this sector, and as we see change occurring at an amazing rate, governors are reshaping how states consider Infrastructure Investments. This afternoon were going to examine the challenges and opportunities for states as Innovative Technology becomes an integral part of our nations infrastructure. And im hoping that this conversations going to provide a chance to examine policy solutions spurring the safe transition and implementation of new technologies into our roadways and share successes. I know many of you have already had in colorado with regard to Autonomous Vehicles. Weve been really working hard to seek a better balance with the promotion of innovation and protecting Public Safety. With our department of transportation, our cdot, the state patrol cooperated with auto for it was the first fully successful autonomous beer delivery in the nation, appropriately in colorado. Just another reason why colorados a great place to live. Were also work toward smart infrastructure to communicate with fully Automated Vehicles, driving on colorado roads. We call it project smart 25. Using smart ramp meters to help the system operate at peak efficiency. Its been used already successfully in australia to increase capacity. So u. S. Is having this introduced now, and i think were seeing early success in our state. These are just a few of the things were doing. I know many of you wire going to hear in the discussions about the things youre working on. But first ill turn it over to governor deucy, who i have the pleasure of serving on with the edc leadership this year. Governor ducey, i look forward to hearing about the great work your administration is doing as well to spur innovative Infrastructure Investments. Thank you, governor hicken looper. Its great to be with you here today and secretary chao. Were all thrilled youre able to join us. Im going to revise and condense my remarks so we can have the maximum amount of too many with you. And i know so many governors here have questions around infrastructure and the opportunities there. In arizona were embracing the innovation that exists around transportation and infrastructure. And we look at these as opportunities in transportation, in water and in telecommunications. And were doing our best to lay the ground work for for a Bright Future in all of those categories. In arizona especially water is of incredible concern. Weve built the fifth largest metropolitan area in the middle of a desert. And its because we have been very good with water and the 16year drought, although thank goodness its been an incredibly wet winter. And i hope it continues. We continue to look for ways to conserve and augment our water supply. We are proud that in arizona today we use less water than we did in 1957 and our economy 45z grown 19 times since then and six times in population. Its something we have planned for and something we think about every day and something that really outlasts the term of any elected official. I can tell that water is not as great a concern in other parts of the country by the water pressure in the hotel rooms. We also want you to know that uber and lyft are two organizations and a technology in terms of a ridesharing app that weve embraced in arizona. We like to think of ourselves as the kittyhawk for driverless technology. Not only do we have uber testing in arizona, we also have gm and google through an enterprise called weimo. Ive had the opportunity in the last 60 days to drive in three aughton musmouse vehicles from three different companies. This is the technology i can tell you that its on its way. And will be here soon and something that will affect all of our states in terms of how were going to handle it. I think in arizona weve been fortunate because weve been focused on regulation and safety but not an overly aggressive regulation. We were able to put 86 million additional dollars into our transportation budget last year on some focused projects. But transportation funding is something that i think is a question that all the governors have as to what federal spending is going to look like in the next four years. On telecommunications were trying to pave the way for 5g technology that will give us significantly faster download speeds and to bring this infrastructure out to our rural areas. One other thing i want to talk on in arizona that i think is something we likely are seeing all across the country in the sharing economy bills, uber, lyft, air bnb are something thats been topical in arizona with city and local governments having a lot of power to regulate industries. Weve gone out of our way in arizona to make sure were as welcoming as possible both from a state and local perspective. We put a bill out that states that governments are not allowed to regulate a new industry as if it were an existing industry without express legislative authority to do that. Ill give you one quick example. When i first came in office the super bowl was going to be held in arizona in the first month and we heard from our director of waits and measures that his plan was to sting uber during the super bowl and shut them down. With the regulations that had been written decades ago for taxicabs. We quickly got a new director of weights and measures, and we lifted those regulations. We dont want to see the heavy hand of government being used in an overly aggressive way to stop these new innovative ideas that will provide such conveniences for our citizens. That along with p3 are things were focused on in arizona and im excited to hear from the secretary. Thank you, governor ducey. And im going to do a brief introduction, and this could well be 20 pages long. I first met our new secretary of the u. S. Decht transportation, elaine chao, when i was a mayor of denver and she was the secretary of labor. And they were doing some of the most innovative work in labor certainly that had been done at that time, and we worked together on two different frojts. And her staff really was a treat. And were going to have a great partner i think. Secretary chao has as long and distinguished a career in Public Service and the private sector and the Nonprofit Sector as just about anybody i know. Prior to serving as the department of transportation secretary chao served as u. S. Secretary of labor from 2001 to 2009, where she focused on increasing the competitiveness of americas workforce in the Global Economy but also piloting competitive programs and grants to really get states to compete and try to create innovation on their own. Secretary chaos extensive Public Service record includes positions and this is a remarkably broad array of a career. Ceo of the united way of america or united way america. The director of the peace corps. Deputy secretary of the u. S. Department of transportation. Chairman of the federal maritime commission. Deputy maritime administrator. And white house fellow specializing in transportation and trade. While not dedicating our time to public sector, secretary chao has worked as Vice President of syndications as bank of america and been a transportation banker at city corp. So we are i think all looking forward to hearing from secretary chao about the direction of the department of transportation in the coming years and hopefully we can have a vigorous dialogue here. So without further ado i will turn it over to secretary chao, who was sworn in three weeks ago. Thank you very much, governor. [ applause ] i have to say, governor, when you were running through my resume i was thinking to myself, these people are going to think i cant hold a job. Governor ducey, thank you very much also. And thank you to all 6 you for inviting me to discuss innovation and infrastructure with you. We really appreciate the opportunity. But i have to also give a big shout out to my home state governor, governor matt bevan from kentucky. [ applause ] the new Automated Technologies have the potential of dramatically changing Public Transportation and travel, expanding access for millions within our borders. The private sector is driving these innovations, working with cities and states like yourselves. But in addition to the commercial applications, Automated Technologies can also help expand access to transportation for underserved populations, especially the elderly and the disabled. I know that governor hickenlooper and also governor ducey have rid nen Automated Vehicles and they have really been leaders in Automated Technologies and we want to thank both of you for your interest and for your leadership. You know, over 35,000 people perished in traffic crashes in 2005. This is a 7 inkracrease over t previous year. Research shows that 94 of fatalities are due to human error. Fatalities and crashes. So Automated Technology has the potential to help illuminate human error and reduce crashes and fatalities significantly. So theres a lot at stake in getting this technology right. To promote research and development the department has so far approved ten applications for Automated Vehicle proving grounds. Drones are another exciting emerging technologies. As you know companies are testing numerous commercial applications for drones. Ups, for example, is test a delivery drone in florida, for example. But drones also play a very Important Role in safe grgd our infrastructure. Rail lines already use them for safety checks on equipment and tracks. They also have been used in Emergency Response in the United States for more than a decade. In kentucky firefighters are using drones with thermal cameras to locate cameras, locate the lost and help in Disaster Recovery efforts. Drones can also be used to inspect pipelines for leaks, protect First Responders in accidents involving derailments, and hazardous materials. And also help save lives in many other emergency situations. In september of last year nhtsa, the national highway Traffic Safety administration, issued a federal Automated Vehicles policy. This is a set of guidelines, not a set of rules, and this administration is evaluating this guidance and will consult with you and other stakeholders as we update and amend it to assure and ensure that it strikes the right balance. We will also be asking for your input as the faa develops standards and regulations to ensure that drones can be safely integrated into our countrys airspace. We want very much to work with you and other stakeholders to ensure that the federal government is a catalyst for a safe, effective technologies, not an impediment. America is a beacon throughout the world because of our innovation, our creativity, and our forwardlooking manner which is so much a part of what americas all about. So i want to work with all of you in all of your states on emerging technologies by also want to issue a challenge to silicon valley, detroit, and all other Auto Industry hubs to step up and help educate a skeptical public about the benefits of Automated Technologies. One of the biggest obstacles to deploying this technology is consumer acceptance. And as regulators and as Public Policy makers we need to Work Together to educate and address legitimate public concerns about safety and privacy. So once again, let me conclude that i look forward to working with all of you. The future is so full of promise. And weve got to use every tool available to modernize our infrastructure so our countrys economy will remain competitive, grow, and produce goodpaying jobs for americas families. I look forward to our discussion. Thank you. [ applause ] ill open it up for questions from the governors. Theres bright light everywhere. You know, i have one question, and i think that it certainly has been in colorado and around the country skepticism about Autonomous Vehicles, cars and trucks. And as you just described, the human error involved in accidents and fatalities, 94 , is astonishing. But still, how can we confront that skepticism . But also when we do have accidents when the technology breaks, how do we make sure the skepticism increases even though overall were going to be saving lives. Ive tried to address those issues in my opening remarks by saying that technology can do so much to improve the competitiveness of our country, to improve the quality of life for our residents and citizens. But there is great angst and anxiety on the part of many people about emerging technologies, how they work, what they really mean, what it means for private and so i think this is a wonderful forum for each of your states as well that we all take a collective effort to recognize, number one, those very legitimate concerns and begin to talk about them, raise them up so we have a National Consensus in how to proceed with some of those regulations that were all entrusted with implementing and promulgating. Governor haslam, tennessee. Thank you, thank you for joining us. I realize were on the preliminary side of that but any insight you would have for this group on the infrastructure plan to come out of the administration. The administration is just getting started. So we are beginning to we are in discussion about various infrastructure plans. We are open and welcome ideas. I know that tomorrow the president will be speaking with you and he will be looking forward to discussing with you your ideas about infrastructure. This is a pivotal time for our country. This is a transformational time. Theres no better time in my recent memory than now for the recognition that the infrastructure of our country is critical, and i believe that the many stakeholders that are involved in a Critical Infrastructure plan are in pl e place. There seems to be bipartisan support for addressing the infrastructure needs of our country. So if not now when, and i believe the time is now. And youll have a great discussion with the president tomorrow. Governor wolf, pennsylvania. Madam secretary, welcome. Id just like to say to the two folks, two guys on either side of you, theres a lot of Autonomous Vehicle research being done in pennsylvania and pittsburgh, pennsylvania yes. With uber and google and now ford has made a big investment in pittsburgh. Thank you for your support. Ive actually been to pittsburgh well, thats great. Wed love to have you back. I just want to ask on the infrastructure, this is a time when theres a lot of focus on what we havent done over the past years and i think the administrations focus on infrastructure is important because we have a lot of catching up to do. By some estimates 4 trillion nationally. But its also it seems to me a good time to do a reset on infrastructure. So youre talking about Autonomous Vehicles. But there are other things other nations have done on infrastructure like highspeed rail, like pipelines. Things that while not completely autonomous actually help our Transportation System in ways that the oldfashioned roads and bridges dont. So how should we be approaching pennsylvanias the keystone state. A lot of eastwest traffic already. How should we as a commonwealth proceed to think more broadly about this . Youre exactly right. I should have mentioned highspeed rail. In fact, we have a number of very impressive highspeed rail projects throughout the country. Most recently i received a visit from people who are involved in dlatshouston highspeed rail. Theres also a very important highspeed rail with the governor in other states as well. This i think that highspeed rail is part of the thinking of the future of the Transportation System of our country. This is not to say that there are without problems. Eminent domain is a huge issue. With any of these highspeed rail projects. We also have desires to make certain parts of existing infrastructure, rail infrastructure, highspeed rail that is more difficult. Primarily because highspeed rail needs a straightaway to be able to gain the speed necessary to qualify for it for highspeed rail. Theres been a lot of talk in recent years about amtrak and how do we increase the speed without sacrificing safety of course in the northeast corridor. I think these are very valuable and very legitimate concerns. And we should be addressing them. They may not be currently applicable. But as we talk about a future Infrastructure Project and a future infrastructure for our country i think there should be consideration. There needs to be consideration of different kinds of travel alternatives for commercial and passenger use and technology will enable us to obtain a futuristic look. But thats much, much more in the future. Were thinking about the shortterm infrastructure needs, medium infrastructure needs and ultimately longer term. The president is very futuristiclooking. Hes thinking about a Transportation System, an infrastructure system that includes not old transportation but other aspects of a Critical Infrastructure that will make us more competitive internationally. Youll hear more about that fr