- NOMINATIONS TO THE DEPARTMENT OF COMMERCE, FEDERAL MARITIME COMMISSION, AND THE METROPOLITAN WASHINGTON AIRPORTS AUTHORITY

[Senate Hearing 110-1116]
[From the U.S. Government Publishing Office]

S. Hrg. 110-1116

NOMINATIONS TO THE DEPARTMENT
OF COMMERCE, FEDERAL MARITIME
COMMISSION, AND THE METROPOLITAN
WASHINGTON AIRPORTS AUTHORITY

=======================================================================

HEARING

before the

COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE

ONE HUNDRED TENTH CONGRESS

FIRST SESSION

__________

OCTOBER 23, 2007

__________

Printed for the use of the Committee on Commerce, Science, and
Transportation

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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

ONE HUNDRED TENTH CONGRESS

FIRST SESSION

DANIEL K. INOUYE, Hawaii, Chairman
JOHN D. ROCKEFELLER IV, West TED STEVENS, Alaska, Vice Chairman
Virginia JOHN McCAIN, Arizona
JOHN F. KERRY, Massachusetts TRENT LOTT, Mississippi
BYRON L. DORGAN, North Dakota KAY BAILEY HUTCHISON, Texas
BARBARA BOXER, California OLYMPIA J. SNOWE, Maine
BILL NELSON, Florida GORDON H. SMITH, Oregon
MARIA CANTWELL, Washington JOHN ENSIGN, Nevada
FRANK R. LAUTENBERG, New Jersey JOHN E. SUNUNU, New Hampshire
MARK PRYOR, Arkansas JIM DeMINT, South Carolina
THOMAS R. CARPER, Delaware DAVID VITTER, Louisiana
CLAIRE McCASKILL, Missouri JOHN THUNE, South Dakota
AMY KLOBUCHAR, Minnesota
Margaret L. Cummisky, Democratic Staff Director and Chief Counsel
Lila Harper Helms, Democratic Deputy Staff Director and Policy Director
Christine D. Kurth, Republican Staff Director and General Counsel
Paul Nagle, Republican Chief Counsel

C O N T E N T S

----------
Page
Hearing held on October 23, 2007................................. 1
Statement of Senator Inouye...................................... 1
Prepared statement........................................... 2
Statement of Senator Nelson...................................... 3
Statement of Senator Stevens..................................... 3
Prepared statement........................................... 3

Witnesses

Anderson, Hon. A. Paul, Renominated to be Commissioner and
Chairman-Designate, Federal Maritime Commission................ 35
Prepared statement........................................... 36
Biographical information..................................... 37
Brown, Hon. Robert Clarke, Renominated to be a Member, Board of
Directors, Metropolitan Washington Airports Authority (MWAA)... 6
Prepared statement........................................... 7
Biographical information..................................... 8
Letter, dated October 29, 2007, to Hon. Daniel K. Inouye and
Hon. Ted Stevens........................................... 15
Brown, Hon. Sherrod, U.S. Senator from Ohio...................... 4
Kress, Carl B., Nominated to be Commissioner, Federal Maritime
Commission..................................................... 27
Prepared statement........................................... 28
Biographical information..................................... 29
Voinovich, Hon. George V., U.S. Senator from Ohio................ 4
Zinser, Todd J., Nominated to be Inspector General, U.S.
Department of Commerce......................................... 18
Prepared statement........................................... 20
Biographical information..................................... 21

Appendix

Response to written question submitted to Carl B. Kress by:
Hon. Barbara Boxer........................................... 51
Hon. Daniel K. Inouye........................................ 49

NOMINATIONS TO THE DEPARTMENT OF
COMMERCE, FEDERAL MARITIME
COMMISSION, AND THE METROPOLITAN
WASHINGTON AIRPORTS AUTHORITY

----------

TUESDAY, OCTOBER 23, 2007

U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 2:30 p.m. in room
SR-253, Russell Senate Office Building, Hon. Daniel K. Inouye,
Chairman of the Committee, presiding.

OPENING STATEMENT OF HON. DANIEL K. INOUYE,
U.S. SENATOR FROM HAWAII

The Chairman. Public service is a noble calling and we
thank those nominees who are willing to spend their careers in
government, as well as those who lend their expertise, garnered
from a successful career in the private sector, to public
enterprises.
The Inspector General for the Department of Commerce is
charged with the oversight of a wide array of programs,
including conservation and management of ocean resources, trade
promotion, and enforcement and spectrum policy. It is vital
that the Inspector General remain above politics. The
independence of the Department of Commerce Inspector General
and all the Inspectors General must be without doubt. The
Congress and this Committee will be depending on this office to
both ferret out waste, fraud, and abuse, and to develop policy
and programs across all of the Departments' diverse portfolio
of programs.
Mr. Zinser, this job will require significant commitment,
dedication, and a constant pursuit of the facts. I hope your
own career in the Department of Transportation will serve you
well and set an example for an office that has been in turmoil
for some time.
The Federal Maritime Commission has been tasked with a very
important mission of ensuring that U.S. international trade is
open to all nations on a fair and equitable basis. As U.S.
global trade negotiations continue to expand, we will become
even more dependent on maritime commerce for ``just-in-time''
delivery of consumer goods and components.
The FMC must remain diligent in monitoring the shipping
practices of our trading partners, to ensure fairness, and to
protect American consumers from collusion and anticompetitive
behavior. And so, we welcome the testimony of Messrs. Paul
Anderson and Carl Kress, who have been nominated to serve as
Commissioners.
Mr. Robert Clarke Brown is a current Member of the Board of
Directors of the Metropolitan Washington Airports Authority
(MWAA). As such, he is one of primary individuals responsible
for the day-to-day operations, finances, and effectiveness of
two of the major airports serving this region. Mr. Brown has
been reappointed to the MWAA Board, and can share with the
Committee and the Board, his experience of the authority as
MWAA prepares to meet the challenges that face the Washington
region's airports in the coming years.
Today, we will examine these four nominees credentials and
views, and we thank you again for your commitment to public
service. And should you be confirmed, we look forward to
working with each of you.
And may I now recognize the Vice Chairman.
[The prepared statement of Senator Inouye follows:]

Prepared Statement of Hon. Daniel K. Inouye, U.S. Senator from Hawaii

Public service is a noble calling, and we thank those nominees who
are willing to spend their careers in government as well as those who
lend their expertise garnered from a successful career in the private
sector to public enterprises.
The Inspector General for the Department of Commerce is charged
with the oversight of a wide array of programs, including conservation
and management of ocean resources, trade promotion and enforcement, and
spectrum policy.
It is vital that the Inspector General remain above politics. The
independence of the Department of Commerce Inspector General, and all
Inspectors General, must be without doubt. Congress and this Committee
will be depending on this office to both ferret out waste, fraud, and
abuse, and to develop policy and programs across all of the
Department's diverse portfolio of programs.
Mr. Zinser, this job will require significant commitment,
dedication, and a constant pursuit of the facts. I hope your long
career at the Department of Transportation's Office of Inspector
General will serve you well in setting the example at an office that
has been in turmoil for some time.
The Federal Maritime Commission (FMC) has been tasked with the very
important mission of ensuring that U.S. international trade is open to
all nations on fair and equitable terms.
As U.S. global trade continues to expand, we will become even more
dependent on maritime commerce for ``just-in-time'' delivery of
consumer goods and manufacturing components. The FMC must remain
diligent in monitoring the shipping practices of our trading partners
to ensure fairness and to protect American consumers from collusion and
anti-competitive behavior. We welcome the testimony of Mr. Paul
Anderson, and Mr. Carl Kress, who have been nominated to serve as
Commissioners.
Recently, issues have been brought to my attention concerning the
management and operations of the FMC. In addition to post-hearing
questions, the Committee intends to hold an oversight hearing on the
FMC in the near future. I am hopeful the sitting Commissioners will
make themselves available to testify before the Committee at that time.
Mr. Robert Clarke Brown is a current Member of the Board of
Directors of the Metropolitan Washington Airports Authority (MWAA). As
such, he is one of the primary individuals responsible for the day-to-
day operations, finances, and effectiveness of two of the major
airports serving this region. Mr. Brown is being reappointed to the
MWAA Board and can share with the Committee and the Board his
experience at the Authority as MWAA prepares to meet the challenges
that face the Washington region's airports in the coming years.
Today we will examine these four nominees' credentials and views.
Thank you again for your commitment to public service. Should you be
confirmed, I look forward to working with each of you.

STATEMENT OF HON. TED STEVENS,
U.S. SENATOR FROM ALASKA

Senator Stevens. Thank you very much, Mr. Chairman. I'd ask
my statement be printed in the record after yours, and state to
Mr. Brown that I served on that Board at one time. I know it's
a chore, so we welcome you and welcome your decision to serve
for a second term.
Thank you, Mr. Chairman.
[The prepared statement of Senator Stevens follows:]

Prepared Statement of Hon. Ted Stevens, U.S. Senator from Alaska

Mr. Chairman, thank you for holding today's hearing. These
individuals have been selected to fulfill vital roles within their
organizations and I thank them for their willingness to serve.
The Metropolitan Washington Airports Authority has a critical
responsibility to the millions of travelers who pass through Washington
Dulles International and Ronald Reagan Washington National Airports
each year, and it is essential that these two airports be run
efficiently. I was once a Member of this Board so I understand the
challenges it faces. Mr. Brown, you have already served a number of
years on the Board and I appreciate your continued service.
The Inspector General's office is charged with conducting
independent and objective investigations within a department and it is
crucial that this position be filled by an individual who remains
honest and impartial throughout the investigative and auditing process.
I look forward to hearing Mr. Zinser's vision for the IG's office at
the Department of Commerce.
The maritime industry is vital to U.S. commerce. Protecting ocean
borne transportation and the security of our ports is of the utmost
importance. I welcome our two nominees for the Federal Maritime
Commission and look forward to hearing from them.

The Chairman. Senator Nelson?

STATEMENT OF HON. BILL NELSON,
U.S. SENATOR FROM FLORIDA

Senator Bill Nelson. Mr. Chairman, it's my privilege, also,
to be here on behalf of Paul Anderson, who is currently serving
as a Commissioner on the Federal Maritime Commission, and he
has been reappointed by the President for another term as
Commissioner, and designated as the Chairman. And, he has a
long experience in the maritime sector, having been with one of
the national marine industries. It's Hvide Marine, it's a
maritime support and transportation business. It's located in
Florida.
And then, he further has been with one of our major
importers, JM Family Enterprises, a diversified automobile
business headquartered in Florida. He's had experience in
government at all levels, local, state, and Federal. And he's
been on the Commission now for 4 years, so he has tremendous
experience there. His experience goes back to your former
colleague, Senator Hawkins, where he was a Special Assistant to
her.
And so, because of his community involvement, his extensive
public service to the community and to our state, and now in
the national arena, having been a Member for 4 years, I'm here
to support and speak for his renomination.
The Chairman. Thank you very much, Senator.
And now, it's my high privilege and honor to present two of
our most distinguished Senators from the State of Ohio. The
first, the Honorable Sherrod Brown and the Honorable George
Voinovich. Welcome gentlemen.
May I recognize Senator Voinovich first.

STATEMENT OF HON. GEORGE V. VOINOVICH,
U.S. SENATOR FROM OHIO

Senator Voinovich. I thank you, Mr. Chairman.
I want to thank you for allowing me to speak today on
behalf of Robert Clarke Brown who the President has nominated
for reappointment to the Metropolitan Washington Airports
Authority.
He has had a diverse career, spanning both the public and
private sectors. He's a former investment banker and a U.S.
Department of Transportation capital markets advisor. His
association with the Airports Authority dates back a decade
and, in that time, he has chaired both the Finance Committee
and the Strategic Development Committee.
Mr. Chairman, as the now Ranking Member of the Oversight of
Government Management, the Federal workforce, and the District
of Columbia Subcommittee of the Homeland Security and
Governmental Affairs Committee, we have worked in the last 8
years to try to make sure that we have the right people with
the right knowledge and skills at the right place at the right
time. And we are fortunate that Mr. Brown is continuing his
interest in this position.
And I must say, that it's not surprising, because we all
know he shares a connection with our fellow colleague, Senator
Sherrod Brown, the junior Senator from Ohio. They're brothers.
And even though Senator Brown and I wear different party
labels, we work together to do what we think is in the best
interest of Ohio and in the best interest of our country. And
I'm honored that Sherrod has asked me to participate in this
confirmation. I think that Mr. Brown's 10 years of dedicated
service to the Airports Authority speak for itself. And I
really look forward to this Committee's swift action on his
nomination.
Thank you, Mr. Chairman.
The Chairman. Thank you very much, Senator.
Senator Brown?

STATEMENT OF HON. SHERROD BROWN,
U.S. SENATOR FROM OHIO

Senator Brown. Thank you, Mr. Chairman, Vice Chairman
Stevens, and Senator Nelson. Thank you.
And then special thanks to Senator Voinovich. Senator
Voinovich, as you may know, is the first Ohioan in 40 years to
have served both as Governor and as Senator. And the other
Ohioan that did that some 40 plus years ago, also served as
Mayor of Cleveland, Governor of Ohio, and United States Senator
in that order, as Senator Voinovich has. And he was Honorable
Frank J. Lausche, a Democrat, who was a mentor of sorts, I
think, for Senator Voinovich. So I thank him for that.
And Mr. Chairman, I thank you for your consideration. I'm
thrilled to be here on behalf of my brother. I actually
appeared in front of this Committee when I was in the House of
Representatives, a decade ago, at Bob, my brother's first
confirmation. And, it was a day that I showed up a bit rumpled
and tired and unshaven. The House had been in session all
night, and I came over here at 9:30 in the morning when Senator
McCain was chairing the Committee.
And I remember saying at that time, as a House member, that
I apologize for the way I look, but that the House of
Representatives obviously worked a good deal harder than the
Senate. And a decade of public service since then, and the
wisdom I've accrued from that decade of service, makes me
realize I was wrong and that the Senate actually works
significantly harder than the House. So, I appreciate that.
[Laughter.]
Senator Brown. I want to first introduce my family members
who are here. First Bob, obviously. My mother Emily, who lives
in Mansfield, Ohio. My brother Charlie, his wife Ann, Bob's
wife, Katherine, who is over here. And my niece, Marcia Grace.
And Marcia Grace, 10 years ago when I was here, was actually
here in a stroller. So she is now a young adult. So, we're all
thrilled to have her here.
I think I'm well-situated, briefly Mr. Chairman, I'm well-
situated to speak to this nominee's qualifications. I don't
know how many classes in high school I took, where the teacher
told me how smart my older brother was and how well he had
done. It has gotten a little old, frankly, but with the passage
of 40 years, I think I can start to get over it.
As--and my mother, who is here, as I said, taught me that
boasting, taught Bob and I that boasting is impolite, but
nothing prevents me from bragging about my brother. He has been
an outstanding public servant. He has done outstanding work,
both in the private sector and in volunteer, for all intents
and purposes, volunteer jobs like the Airports Authority. He
excelled academically in high school, college, law school,
graduate school. He has excelled as a professional. He has
excelled in both the public sector and the private sector.
Senator Voinovich talked about many of his qualifications.
He now is the Treasurer of one America's great universities,
Case Western Reserve University in Cleveland. And it's my
pleasure to ask this Committee to consider, with fairness, as I
know you will, Mr. Chairman--my brother's nomination, Robert
Clarke Brown.
Thank you very much.
The Chairman. Thank you very much, Senator Brown.
It's always moving to have a brother speak highly of his
brother. He didn't beat you up, did he?
[Laughter.]
Senator Brown. Yes, he did, he did. Certain family secrets
remain family secrets.
[Laughter.]
The Chairman. In honor of the introduction, may I call
upon, out of order, Mr. Robert Clarke Brown, Member of the
Board of Directors-Designate, Metropolitan Washington Airports
Authority?
Welcome, Mr. Brown.

STATEMENT OF HON. ROBERT CLARKE BROWN,

RENOMINATED TO BE A MEMBER, BOARD OF DIRECTORS,

METROPOLITAN WASHINGTON AIRPORTS AUTHORITY (MWAA)

Mr. Brown. Thank you, Mr. Chairman.
I'm Robert Clarke Brown of Ohio. I appreciate this
opportunity to appear before you, in support of my nomination
by the President for reappointment to the Metropolitan
Washington Airports Authority, the operator of the two
principle airports serving our Nation's capitol.
And Senator Stevens, I very much appreciate your being here
as well today, and recognize very much your many years of
contributions to our Nation's transportation system, including,
as you mentioned, this--this Authority, which as, really I
think, one of Congress's great creations and contributions to
our regional transportation system.
Mr. Chairman, I--I want to first express my thanks to my
brother Sherrod, for being here today on my behalf. I will note
for the record, Mr. Chairman, as you probably gathered from his
remarks, he is my baby brother. But I also want to say that I
don't think there are any big brothers anywhere in America that
are prouder of their little brother than I am of Sherrod and
all he's accomplished, and all he has done for the people of
Ohio and the service he has rendered to our Nation and will
render as a United States Senator.
And Senator Voinovich as well, I want to say how much I
appreciate his also being here for me today. He has been a
public servant in Ohio for decades and, as both--as was
mentioned, as Mayor, as Governor, and now as our senior
Senator. And, as a Buckeye, I want to thank him for many years
of wonderful service to my home state.
You heard from Sherrod, that I am accompanied today by many
members of my family. It's a--it is a bit of a family affair.
My daughter Marcia, is a--is a fifth grader. She's playing
hooky today, but I assure you, Mr. Chairman, she'll be back
hitting the books tonight when we get home and preparing for
her lessons tomorrow.
I am privileged to have been associated with the Airports
Authority in various capacities for more than a decade, a
period in our Nation's history which has been both exciting for
the Authority's airports and challenging for all of U.S.
aviation.
At the beginning of that time, Washington National Airport
was the larger and more important of the Authority's two
airports. But it now has been far surpassed by Washington
Dulles International Airport, and the Airports Authority has
moved beyond its original role as solely an airports operator,
emerging as an important player in the Washington region's
multi-modal transportation system, something I have a little
more to say about in a moment.
Dulles Airport was established half a century ago, by a
visionary Federal Government, which anticipated the Capitol
region's future demand for air transportation and sited an
airport which would have ample capacity to grow as that demand
materialized. The past decade has seen that vision realized, as
Dulles has become both an important domestic carrier, with
frequent service by both traditional and low-cost carriers, and
a major international gateway, serving destinations in Asia,
Africa, Europe, and South America.
To support that growth in air service, the Authority
undertook, at the turn of the century, a multi-billion dollar
expansion of Dulles. Though that expansion was slowed in the
years immediately after September 11, 2001, we are now well
into it. When completed, Dulles will have an additional air-
side and land-side capacity, as well as an underground,
automated people mover system, all of which will bring greater,
more convenient air service to the Capitol region's ever
increasing numbers of air travelers.
Two years ago, the Commonwealth of Virginia was considering
a number of proposals to privatize the Dulles Toll Road, a road
built and operated by Virginia, but lying in the Authority's
right-of-way. The Authority proposed that, in lieu of
privatization, it take over operation of the toll road and use
the excess revenue from the toll road to extend the regional
Metrorail system to Dulles Airport. I am sure I speak for all
of my colleagues on the Airports Authority Board, Mr. Chairman,
when I tell you that I am proud the Governor of Virginia placed
his confidence in the Authority by accepting our proposal, and
asking us, the Airports Authority, to take over responsibility
for building Metrorail to Dulles.
The magnitude of this undertaking is substantial. The
Dulles rail project will be in upwards of $5 billion, one of
the largest investments in the Washington metropolitan region's
transportation system during the next decade.
Complimenting existing ground access to Dulles with the
rail line, is a critically important service improvement for
our passengers and for the thousands of people who work at
Dulles Airport. Increasingly, the world's leading international
airports offer their customers airport access through rail
service. And the Authority believes that Dulles, the
international airport for the Capitol of the United States of
America, should join their ranks.
With the completion of the Dulles rail line, both of the
Authority's airports will have convenient rail service,
accessible directly from the airport terminals. We know that
particularly in the Washington area market, customers want rail
service to the airport. The percentage of National Airport's
customers who access the airport by rail is the highest of any
U.S. airport.
Mr. Chairman, I have a written statement I'd like to submit
for the record. That concludes my opening remarks, and I look
forward to responding to your questions.
[The prepared statement and biographical information of Mr.
Brown follow:]

Prepared Statement of Hon. Robert Clarke Brown, Renominated to be a
Member, Board of Directors, Metropolitan Washington Airports Authority
(MWAA)

Mr. Chairman and members of the Committee:

I am Robert Clarke Brown of Ohio. I appreciate this opportunity to
appear before you in support of my nomination by the President for re-
appointment to the Metropolitan Washington Airports Authority.
I am privileged to have been associated with the Airports Authority
in various capacities for more than a decade, a period in our Nation's
history which has been both exciting for the Authority's airports and
challenging for all of U.S. aviation. At the beginning of that time,
Washington National Airport was the larger of the Authority's two
airports; but it now has been far surpassed by Washington Dulles
International Airport. And the Airports Authority has moved beyond its
original role as solely an airports operator, emerging as an important
player in the Washington region's multi-modal transportation system.
Dulles Airport was established half a century ago by a visionary
Federal Government which anticipated the capital region's future demand
for air transportation and sited an airport which would have ample
capacity to grow as that demand materialized. The past decade has seen
that vision realized, as Dulles has become both an important domestic
airport, with frequent service by both traditional and low-cost
carriers, and a major international gateway, serving destinations in
Asia, Africa, Europe and South America. To support that growth in air
service, the Authority undertook at the turn of the century a multi-
billion dollar expansion of Dulles. Though that expansion was slowed in
the years immediately after September 11, 2001, we are now well into
it. When completed, Dulles will have additional air-side and land-side
capacity, as well as an underground automated people mover system, all
of which will bring greater, more convenient air service to the
region's ever increasing numbers of air travelers.
Two years ago, the Commonwealth of Virginia was considering a
number of proposals to privatize the Dulles Toll Road, a road built and
operated by Virginia, but lying in the Authority's right-of-way. The
Authority proposed that, in lieu of privatization, it take over
operation of the Toll Road and use the excess revenue from the Toll
Road to extend the regional Metrorail system to Dulles Airport. I am
sure I speak for all my colleagues on the Airports Authority Board when
I tell you that I am proud the Governor of Virginia placed his
confidence in the Authority by accepting our proposal and asking us to
take over responsibility for building Metrorail to Dulles. The
magnitude of this undertaking is substantial: the Dulles rail project
will be, at upwards of $5 billion, one of the largest investments in
the Washington metropolitan region's transportation system during the
next decade.
Complementing existing ground access to Dulles with a rail line is
a critically important service improvement for our passengers, and for
the thousands of people who work at Dulles airport. Increasingly, the
world's leading international airports offer their customers airport
access through rail service, and the Authority believes that Dulles,
the international airport for the capital of the United States, should
join their ranks. With the completion of the Dulles rail line, both of
the Authority's airports will have convenient rail service, accessible
directly from the airport terminals. We know that, particularly in the
Washington area market, customers want rail service to the airport: the
percentage of Washington National Airport's passengers who access the
airport by rail is the highest of any U.S. airport.
During my tenure at the Airports Authority, I have chaired both the
Finance Committee and the Strategic Development Committee. I have been
involved vocationally in transportation during most of my professional
career, in both the public and private sectors. I believe my experience
on the Board and my professional background will enable me to
contribute meaningfully to the work of the Authority as it assumes an
ever more important role in the Washington region's and the Nation's
transportation system.
I respectfully ask for your favorable consideration of my
nomination and will be pleased to respond to your questions.
______

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Robert Clarke
Brown.
2. Position to which nominated: Member, Board of Directors,
Metropolitan Washington Airports Authority (term expiring Nov. 22,
2011).
3. Date of Nomination: June 21, 2007.
4. Address (List current place of residence and office addresses):

Residence: Information not released to the public.

Office: Case Western Reserve University, 10900 Euclid Avenue,
Cleveland, OH 44106.

5. Date and Place of Birth: Dec. 17, 1947; Mansfield, OH.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).

Catherine B. Scallen, Associate Professor, Department of Art
History, Case Western Reserve University, Cleveland, OH
(spouse); Marcia Grace Brown, 10 (daughter).

7. List all college and graduate degrees. Provide year and school
attended.

Princeton University, B.S.E., 1969.

Harvard Law School, J.D., 1974.

Georgetown University Law Center, LL.M., 1975.

8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.

Full-time, permanent employment:

United States Navy, 1969-1971.

Fellow, Institute for Public Interest Representation, 1974-
1975.

Counsel, House Committee on Interstate and Foreign Commerce,
1975-1976.

Jimmy Carter Presidential Campaign, 1976.

Carter-Mondale Transition Team, 1976-1977.

Special Assistant, U.S. Department of Transportation, 1977-
1979.

Senior Counsel, House Committee on Government Operations, 1979.

Attorney, Jones, Day, Reavis & Pogue, 1980-1983.

Assistant Director, Ohio Department of Transportation, 1983-
1987.

Senior Vice President, Lehman Brothers, 1987-1994.

Executive Vice President, Envirotest Systems Corp., 1994-1995.

Managing Director, Key Capital Markets, 1996-1999.

Capital Markets Advisor, U.S. Department of Transportation,
1999-2007.

Treasurer, Case Western Reserve University, 2007-present.

Summer jobs:

1971: Department of Housing & Urban Development.

1972: Ohio Attorney General.

1973: Reavis, Pogue, Neal & Rose (law firm).

Jobs which have given me particularly valuable experience for
service on the MWAA Board include:

1. my civilian government service--two tours at U.S. DOT and a
stint at Ohio DOT, and

2. my investment banking experience, particularly that at
Lehman Brothers, where I specialized in transportation finance.

Member, Board of Directors, Metropolitan Washington Airports
Authority (since 2000).

Financial Advisor, Ashtabula County, OH (2002-2004).

11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last 5 years.

Financial Advisor, American University (2002-2003).
Trustee, University Circle Incorporated (2004-present).

12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.

Member, St. Paul's Episcopal Church, Cleveland Heights, OH
(since 2002) (service on Stewardship Committee).

Member, Fairmount Presbyterian Church, Cleveland Heights, OH
(19972002) (service as Trustee).

Executive Committee, Municipal Securities Division, The Bond
Market Association (1996-1999).

D.C. Bar and Ohio Bar since 1975 (both inactive).

Former member, Princeton Club of New York (resigned approx.
1998).

To the best of my knowledge, no organization or club of which I
have been a member restricts membership on the basis of sex, race,
color, religion, national origin, age, or handicap.
13. Have you ever been a candidate for and/or held a public office
(elected, nonelected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount, and whether you are
personally liable for that debt.
I have never been a candidate for elected public office.
For full-time, paid, appointed positions I have held, at both the
state and Federal levels, please see my response to question A.8.
As noted in my response to question A.10., I have also been
appointed to an unpaid, part-time position as a Member of the Board of
Directors of the Metropolitan Washington Airports Authority.
14. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period.

Political contributions:

Sherrod Brown for Senate: $1,950 (total of multiple
contributions in 2006).

Sherrod Brown for Senate: $2,100 (2005).

John Kerry for President: $2,000 (total of multiple
contributions in 2004).

Kerry-Edwards General Election Legal and Accounting Compliance
Fund: $1,000 (2004).

Democratic Congressional Campaign Committee: $1,000 (2004).

Bill Bradley for President: $51,000 (1999).

Multiple contributions to KeyCorp PAC totaling more than $500
(1996-1999).

Offices held/services rendered: No offices held in a state or
national political party or election committee; services rendered as a
volunteer to various Democratic candidates during the past 10 years.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.

Fellow, Institute for Public Interest Representation (post-
graduate fellowship).

16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.

Publications:

``A More Humane Military'' (book review of Pawns, by Peter
Barnes), The Progressive, July 1972.

``Where Does It Hurt, General,'' The New Republic, September
30, 1972.

``Standing Up to the CIA,'' The Progressive, July 1973.

Various articles, principally news stories, in Harvard Law
Record (law school weekly newspaper), 1972-1973.

``State Action Analysis of Tax Expenditures,'' 11 Harvard Civil
Rights--Civil Liberties Law Review 97 (1976).

``Don't Hike Federal Gas Tax,'' The Plain Dealer (Cleveland),
January 14, 1989.

``Playing Catch,'' The Plain Dealer (Cleveland), June 21, 1989.

``Designing Credits for New Toll Roads,'' published in
proceedings of International Bridge, Tunnel & Turnpike
Association 1990 Workshop, May 1, 1990.

``Recent Developments in the Municipal Bond Market and the
Impact on Toll Financing,'' published in proceedings of
International Bridge, Tunnel & Turnpike Association 1992 Joint
Meeting of Administration, Finance and Risk Management
Committees, June 8, 1992.

``Faster Turnpike Speed Damaging Move'', Crain's Cleveland
Business, September 6, 2004.

``University Circle Workers Are Losers in Bottom-Line Decision-
Making,'' The Plain Dealer (Cleveland), January 7, 2005.

Speeches:

International Air-Rail Organisation, September 2005: Dulles
rail project.

Moody's Investors Services Infrastructure Conference, October
2005: airport capital planning.

DEPFA conference on privatization, October 2006.

During the past two decades, I have on numerous occasions
participated in professional conferences in the course of which I have
made informal (i.e., no prepared text) presentations or spoken as a
member or moderator of a panel on the subject of infrastructure
finance.
17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or
nongovernmental capacity and specify the date and subject matter of
each testimony.

(a) testimony as a member of a panel of investment bankers on
the subject of infrastructure finance before a House committee
(date was sometime in the late 1980s; committee was probably
House committee on transportation & infrastructure).

(b) first confirmation hearing for appointment to MWAA Board,
June 29, 1995.

1. financing and constructing the Dulles rail project;

2. completing the major construction program underway at
Washington Dulles International Airport;

3. strengthening international air service at Washington
Dulles.

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
I have no deferred compensation agreements.
I am entitled to receive, upon reaching retirement age, a small
pension from Lehman Brothers based on my participation in the firm's
defined benefit pension plan during the 7 years I was employed there.
I am entitled to receive, upon reaching retirement age, a pension
from the Federal Government based on my participation in the Federal
pension plan during my several tours of civilian service and my time in
the U.S. Navy.
I am entitled to receive, upon reaching retirement age, a pension
from the State of Ohio based on my participation in the state's pension
plan during my service there.
I own all my other retirement accounts (IRAs, etc.), and none of
them involves ``continuing dealings'' with any former associate, client
or customer.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? If so,
please explain.
Members of the Board of Directors of the Metropolitan Washington
Airports Authority serve without compensation. I expect to continue to
be employed full-time as Treasurer of Case Western Reserve University
during my service as a Member of the Board.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated: None.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: None.
5. Describe any activity during the past 10 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy: None.
6. Explain how you resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
If I believe I have a conflict, I will recuse myself from any Board
deliberations or action related to the matter in question.

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain.
No. (Please also refer to response to question C.6.)
2. Have you even been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? If so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
Neither I nor any business of which I have been an officer has been
a party in any administrative agency proceeding or civil litigation.
Please see response to question C.6. in connection with a proceeding of
the National Association of Securities Dealers, a self-regulatory
organization.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain. No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
Key Capital Markets, a former employer, was sanctioned in 1997 as a
result of two small political contributions I made prior to the
commencement of my employment there.
In 1994 and 1995 I made two small ($50 and $100) political
contributions to a member of the Cleveland City Council who was a long-
time personal friend. At the time I made the contributions, I was
living in New York, was not employed in the securities industry, and
had not yet had any discussions with Key Capital Markets about
employment. Subsequently, in 1996, I became an employee of Key Capital
Markets in the Public Finance Department and thus became a Municipal
Finance Professional as that term is defined by the Municipal
Securities Rulemaking Board.
Rule G-37 of the Municipal Securities Rulemaking Board prohibits a
broker-dealer from engaging in securities work for a municipal issuer
if any Municipal Finance Professional employed by that broker-dealer
has, during the preceding 2 years, made a political contribution to an
official of that issuer for whom he could not vote. In 1994 and 1995 I
was a resident of New York, and thus I could not vote for the Cleveland
Councilman when I made the contributions to him. Because I had made
political contributions to a Cleveland official for whom I could not
vote and subsequently became employed by Key Capital Markets as a
Municipal Finance Professional less than 2 years after the
contributions were made, Key Capital Markets was barred until 1997 (two
years after the 1995 contribution was made) from doing underwriting
work for the City of Cleveland. Because the firm had played a minor
role in a Cleveland underwriting before either the firm or I was aware
my conduct had been a violation, the National Association of Securities
Dealers assessed a small fine, in the amount of the revenue the firm
had generated through its work on the underwriting (approximately
$10,000), against the firm.
I was neither fined nor sanctioned.

D. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with
deadlines for information set by Congressional committees? I will.
2. Will you ensure that your department/agency does whatever it can
to protect Congressional witnesses and whistleblowers from reprisal for
their testimony and disclosures? I will.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? I will.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
resume of robert clarke brown
Employment
Case Western Reserve University, Vice President and Treasurer,
2007-present.

Manage University's balance sheet

In consultation with investment bankers and financial advisors,
oversee long-term debt portfolio, including derivative
exposure.

Manage short-term investment portfolio and cash management;
arrange University bank relationships.

Brownlea Advisors, Principal, 2000-present.

Created financial advisory firm to serve public agencies and
nonprofit organizations.

Advise on the development of major projects and design
attendant financings.

Advised Ashtabula County on development and financing of Geneva
State Park Lodge.

Advised American University on $45 million financing.

Prior Employment
U.S. Department of Transportation, Capital Markets Advisor, 1999-
2007.

Assisted in establishment of new Federal credit assistance
program under which U.S. DOT supports financing of large,
nationally significant surface transportation projects.

Working with investment bankers, private project developers,
insurers, rating agencies, and private attorneys, represent
U.S. DOT in negotiations of transportation project financings
employing Federal loans and Federal guarantees authorized by
the program.

Structure public-private partnerships which promote private
sector development while protecting the public interest.

Key Capital Markets, Inc., Managing Director, Public Finance, 1996-
1999.

Led establishment of the Public Finance department within
KeyCorp's new investment banking subsidiary.

Recruited and hired bankers to staff six offices nationwide.

Managed 25 professionals plus support staff.

Increased market share in all target markets and tripled
department revenues in 3 years.

Executed financings for both government agencies and nonprofit
organizations.

Envirotest Systems Corp., Executive Vice President, Marketing and
Government Relations, 1994-1995.

Developed competitive strategies for marketing vehicle
emissions testing services to state governments.

Created testing plans tailored to fit political and demographic
requirements of specific markets.

Lehman Brothers, Senior Vice President, 1987-1994.

Developed finance plans for transportation projects of state
and local government agencies.

Presented finance plans to credit rating agencies, bond
insurers, investors, and public constituencies.

Executed over $2 billion in capital markets financings on
behalf of senior-managed clients.

Ohio Department of Transportation, Assistant Director, 1983-1987.

Managed ODOT's public transit, aviation, rail and water
transportation programs.

Led formation of new ODOT Division of Water Transportation and
designed first state program to support Ohio water
transportation.

Created first state grant program for transit.

Supervised 70 employees; coordinated related activities of 12
district offices throughout the state.

Led ODOT's work with the Ohio Turnpike in development of a
long-range strategic plan for the Turnpike.

Jones, Day, Reavis & Pogue, Attorney, 1980-1983.

Private practice of law in areas of municipal bonds, government
regulation, real estate and general corporate (Cleveland
office).

U.S. House of Representatives, Senior Counsel, Committee on
Government Operations, Subcommittee on Environment, Energy and Natural
Resources, 1979.

Led oversight hearings and investigations of Nuclear Regulatory
Commission.

Staff author of Committee report on nuclear power plant
emergency planning.

U.S. Department of Transportation, Special Assistant to the
Assistant Secretary for Policy and International Affairs, 1977-1979.

U.S. House of Representatives, Counsel, Interstate and Foreign
Commerce Committee, Subcommittee on Oversight and Investigations, 1975-
1976.

Institute for Public Interest Representation, Fellow and staff
attorney, 1974-1975.

Conducted advocacy litigation in Federal courts and before
Federal agencies.

Taught and supervised third-year law students in clinical legal
program.

United States Navy, Lt. (j.g.), 1969-1971.

Engineering aide to Admiral H.G. Rickover.

Oversaw testing and materials programs of government
contractors engaged in development, production and operation of
nuclear power plants of Navy ships.

Professional Activities
Board of Directors, University Circle Incorporated, Cleveland, Ohio
(2004-present).

Board of Directors, Metropolitan Washington Airports Auth. (1996-
1997; 2000-present) (appointed to the Board by President Clinton).

Formerly, Chair, Finance and Audit Committees;

Currently, Chair, Strategic Development Committee.

Executive Committee, Municipal Securities Division, The Bond Market
Association (1996-1999).

Chairman, Maglev Study Advisory Committee (1996-1997).

(appointed by the U.S. Secretary of Transportation).

Board of Directors, American Public Transit Association (1993-
1996).

Committee on Finance, Transportation Research Board.

Member: Ohio Bar, District of Columbia Bar.

Education
Princeton University, B.S.E., 1969; Major: Aeronautical
Engineering.

Graduated with High Honors.

Academic honors: Phi Beta Kappa, Sigma Xi (scientific
research), Tau Beta Pi (engineering).

Senior thesis on research of combustion processes of metals
published by NASA.

Harvard Law School, J.D., 1974.

Editor-in-Chief, Harvard Civil Rights--Civil Liberties Law
Review.

Georgetown University Law Center, LL.M., 1975.

Field of concentration: administrative law and regulation.

The Chairman. Your statement will be made part of the
record, sir. I have a question. I don't expect an answer at
this moment, but will you provide me with a written report?
Mr. Brown. Yes, sir.
The Chairman. Recently, a report was rendered, suggesting
that over 60 percent of all flights in the United States are
delayed, especially along the Northeast Corridor, including
Washington. If you do have any views or suggestions or
proposals that would alleviate this problem, please share it
with us.
Mr. Brown. Mr. Chairman, I will prepare a written response
to that.
[The information previously referred to follows:]

Robert Clarke Brown
Shaker Heights, OH, October 29, 2007
Hon. Daniel K. Inouye,
Chairman,

Hon. Ted Stevens,
Vice Chairman,

Senate Commerce, Science, and Transportation Committee,
Washington, DC.

Dear Mr. Chairman and Mr. Vice Chairman:

I appreciated the opportunity to appear before the Committee on
October 23 on my re-nomination to the Metropolitan Washington Airports
Authority (MWAA).
During the hearing, the Chairman asked that I share my views on the
reasons and possible remedies for the significant delays that domestic
airline passengers have experienced this year. I am pleased to do so.
Please note that the views below are entirely mine, and are not to be
taken as views or positions of MWAA.
This year's air travel delays have largely been related to weather
and air traffic capacity. However, they have been particularly serious
along the East Coast because the FAA's air traffic control system in
this region, in the best of weather conditions, is now operating at or
very near its capacity. The introduction of severe weather into an
already constrained air traffic system exacerbates delays as the
system's capacity is further constrained by adverse weather. Thus,
delays initially caused by weather eventually result in further delays
caused by an air traffic system that is incapable of handling the
traffic consequences of poor weather.
Neither government nor the airline industry can control the
occurrence of adverse weather. f However, both are capable of reducing
the travel delays that airline passengers are increasingly
experiencing. And, with domestic airline travel projected to increase
two to three times in the next 20 years, it is clear that extraordinary
actions are necessary.
For the air traffic control system, major infrastructure
advancements must be undertaken. These are now underway, in the form of
the NextGen Air Transportation System, which will move today's air
traffic system from its radar-based, analog technology to a satellite-
based, digital communication system. However, full implementation of
NextGen advancements is 15 to 20 years away, and no system of funding
its implementation has been identified. In the meantime, efforts must
continue to improve the capacity of the current air traffic system
through, for instance, more precise navigational arrivals and
departures, the redesign or expansion of air space around airports,
better weather forecasting techniques, and improved traffic flow
modeling and management tools.
Air traffic delays, of course, can be caused by factors other than
adverse weather and today's air traffic control system. These other
factors also can exacerbate delays caused by weather and inadequate air
traffic system capacity. A significant factor involves airports whose
gate capacity, during peak periods, falls short of demand, forcing
aircraft to wait until a gate is available. This, of course, means more
delay and more frustration for passengers who have already experienced
delays en route.
Airports can address their role in air travel delay by ensuring
that their gate and ground capacity is sufficient to handle anticipated
air traffic demand. Washington Dulles International Airport is doing
just this. The airport is in the middle of a $4 billion capital
expansion program. It is building a new fourth runway and has plans,
which have completed the requisite environmental review, to add a
fifth. MWAA is also constructing at Dulles an underground automated
people mover system, additional terminal space, new fuel tanks and
lines, baggage system improvements, expanded roadways and other
infrastructure enhancements. In the years ahead, Dulles Airport should
have adequate capacity to meet projected air traffic demand.
I note that, since the 1960s, Washington National Airport has been
subject to a ``high density rule'' that limits the number of flights
that carriers may schedule. While not uniformly embraced, the rule has
been an effective tool to prevent delays at the airport, as well as to
protect the surrounding community from aircraft noise. The rule became
necessary because National lacked the capacity to handle the level of
flights sought by airlines. However, amendments to National's high
density rule have added flights to the airport over the years which, by
increasing passenger load, have begun to strain its facilities (e.g.,
its parking garages and space for security facilities). Nonetheless,
the limitations placed on the number of permitted flights at National
have served to moderate flight and passenger delays at the airport.
The FAA has done a credible job of increasing the capacity of the
air traffic system over the years, and its NextGen program, when fully
matured, will greatly expand the system's capacity. Until then,
however, the significant problem of air travel delay will increase, and
must be addressed by a combination of enhancements to the current air
traffic system and expansion of airports' capacity to efficiently
handle incoming and outgoing traffic.
I appreciate the opportunity to present these views. I would be
pleased to address any other questions you or other committee members
may have.
Sincerely,
Robert Clarke Brown.

Mr. Brown. Let me just say briefly, that there are many
causes to the--to the delay of, as you say, the majority of
flights now being delayed during this past summer, which was
very busy in the airline business.
There are many causes of those delays. Airport capacity is
one. The air traffic control system is another. And of course,
weather is always a problem, especially in the summer time.
With respect to the first, we are, I mentioned, we do have
a large building program at Washington Dulles. We think that
will go part way to addressing the problem of delay for flights
out of Dulles. National is pretty well built out. It is also
capacity restrained, constrained, as you know, through the
slots and perimeter rule. So, it is--it is not as much of a
problem there, although we still have delay issues there, more
because of the air traffic control system. But I will respond
in more detail in writing.
Thank you.
The Chairman. As you know, I travel a lot. Last Sunday,
this past Sunday, I flew to Alabama and got back yesterday
afternoon. And, my bag did not follow me. But it finally caught
up with me. You're not responsible for that.
[Laughter.]
The Chairman. I just wanted you to know that I share the
frustration of many of our travelers. So, I look forward to
your report, sir.
Mr. Brown. Thank you, Mr. Chairman.
The Chairman. Senator Stevens?
Senator Stevens. Thank you.
Mr. Brown, what is the Board of Directors' relationship to
TSA? Is there any communication between them and you with
regard to policies at the airport?
Mr. Brown. Senator Stevens, we--we try to have a close
relationship with TSA. There's no question, it is a--it is a
partnership, a dynamic partnership. TSA does make policies. I
think it's fair to say that the various airports around the
country don't always agree with, but we do work continually
with TSA, in trying to solve the problems that we are mutually
addressing. We certainly have asked TSA to provide additional
resources at our airports, to support the security requirements
of a large number of passengers going through the security
checkpoints.
But I'm sure, in fairness to TSA, they are hearing similar
complaints from many other airports around the country. And,
I'm sure part of the problem is, they themselves are resource-
constrained, and are making decisions about how those resources
get allocated. But, we certainly do work as closely with them
as we can. It is, frankly, always a little bit of, I think it's
fair to say, a little bit lobbying. Each airport is doing that,
with the TSA trying to get a little bit larger commitment of
resources to their needs, because passengers, at the end of the
day, going through our airport, don't really differentiate
between TSA and the airport operator, as to who is responsible
if they miss their flight, because they were held up trying to
get through a security checkpoint.
So, it's very much in our interest. We want the experience
of our airport customers, our passengers, to be a positive one,
a pleasant one. We do everything we can to try to work with TSA
to help make that happen.
Senator Stevens. Well, the administration of the airports
doesn't pay anything toward those security problems, do they?
Mr. Brown. We do not pay for those. We have space that we
rent to TSA. TSA actually does pay us rent for the space that
they use at the airport.
Senator Stevens. I've been told that there are some real
problems, in terms of keeping people there at these two
airports. You just have two, don't you?
Mr. Brown. Yes.
Senator Stevens. And particularly, turnover in screeners
and people like that. Does the Board look into problems like
that?
Mr. Brown. I have not--I don't know too much about that,
Senator. I'm happy to look into that further and find out from
our airport operators if, in fact, their sense of the TSA
workforce, is that the turnover's been very heavy. I'm not
familiar with that situation at all, but happy to respond in
some detail in writing to you after the hearing.
Senator Stevens. Well, back in my days on the Board, we
were told that management operation on a daily basis wasn't our
responsibility. Does the Board get into it at all now?
Mr. Brown. Well, I think--I think on some of those kinds of
operational issues, we--we do tend to feel that management
really handles them. But I think when it gets to be a problem
that very much affects the overall experience of our customers,
of our passengers, and I think when there's a legislative
inquiry, I think it's appropriate for the Board to explore it
further. Yes, Senator.
Senator Stevens. Do you think Congress should give the
Boards of Directors that control airports, such as these two,
further powers, with regard to TSA?
Mr. Brown. Well, you know, that is--I'm sure that's a
difficult question that you all wrestle with. We certainly, as
an airport operator, would like to feel we had some authority
with TSA. As you say, we really don't pay them for the service
that they provide. They don't really feel that they are
obligated to respond to us. I think they try to be good
partners, but I think we would like to have some authority,
with respect to the way TSA screeners are deployed, what times
of the day, how many lanes are open, and so on and so forth.
And I think the Authority would--I'm speaking only for myself,
the Board has not discussed this--but I think you would find
some support among directors of the Airports Authority to give
us additional powers to have some oversight on the way TSA
deploys its resources. Yes.
Senator Stevens. Thank you very much and thanks for your
willingness to serve another term. It's not an easy task. I'm
sure it's a burden coming in from Ohio to deal with this. So,
we thank you for what you're doing. We appreciate it very much.
Mr. Brown. Thank you very much, Senator. I very much
enjoyed my service on this Board. It has been a privilege.
The Chairman. Mr. Brown, I thank you very much, and
congratulations.
Mr. Brown. Thank you, Mr. Chairman.
The Chairman. Our next witness is the Inspector General-
Designate, United States Department of Commerce, Mr. Todd J.
Zinser.
Mr. Zinser, welcome, sir.

STATEMENT OF TODD J. ZINSER, NOMINATED TO BE INSPECTOR GENERAL,
U.S. DEPARTMENT OF COMMERCE

Mr. Zinser. Thank you, Mr. Chairman, Vice Chairman Stevens.
I prepared a written statement and would like to have it
submitted for the record if I could.
The Chairman. Without objection, so ordered.
Mr. Zinser. I'd like to summarize that statement briefly.
I'm honored to appear before you today as the President's
nominee to be Inspector General of the Department of Commerce.
I have been privileged to testify before this Committee and its
Subcommittees as Acting Inspector General of the Department of
Transportation, and to have contributed to the important
oversight work of this Committee. I would like to thank
Secretary Gutierrez for his expression of confidence and the
Committee, for considering my nomination expeditiously.
Mr. Chairman, as you and your staff know, public service is
an honor. For the past 24 years, I have been honored to be a
career civil servant. I began as an investigator with the
Department of Labor in 1983, transferred to the Department of
Transportation Office of Inspector General 16 years ago, in
1991, and for the past 7 years, I have served as Deputy
Inspector General, including 8 months as Acting Inspector
General.
It is my firm belief, that throughout my Federal service, I
have demonstrated integrity, objectivity, commitment to good
government, and leadership, characteristics essential to being
an effective Inspector General. The Department of Commerce,
like the other major departments of government, requires an
objective, independent Inspector General, who will make fair
but tough, fact-based calls and report to the Secretary and the
Congress fully and forthrightly.
The Inspector General should work constructively with the
Department and stakeholders, as a force for positive change and
all parties should constantly strive for a relationship built
upon mutual respect and trust. However, the Inspector General
is under an absolute obligation to report to the Congress about
significant problems.
I know that Secretary Gutierrez shares this view, and I am
confident that, if confirmed, the Office of Inspector General
staff and I, would have a good and open working relationship
with the Secretary and the Congress.
My experience at the Department of Transportation OIG in
working with the Secretary and Congress, certainly this very
Committee, has been entirely positive. This experience has
taught me how to conduct investigations and audits in a
credible and constructive way. It has helped me appreciate the
importance of providing policymakers with current, relevant,
factual, and objective information.
I have learned many other lessons, but would like to stress
three in particular. First, that the hallmarks of independence,
objectivity, and nonpartisanship strengthen an IG's
credibility, especially when the findings of an audit or
investigation run counter to what may have been expected.
Second, the importance of Congress in providing oversight and
making progress and leading reform. And third, that government
leaders want to get ahead of problems and expect to hear from
their Inspectors General and GAO about risks and
vulnerabilities and their best recommendations for solutions.
If confirmed, I am committed to applying these lessons and
my experience to the audits and investigations performed by the
Office of Inspector General at the Department of Commerce. As
you noted, Mr. Chairman, in your oversight hearing for the
Department in August, the business of the Department of
Commerce is complex and demanding. Its mission includes
conserving and managing the oceans, taking care of the census,
providing economic opportunities, predicting the weather, and
promoting commerce and innovation and good stewardship of the
resources that contribute to our economic prosperity.
Secretary Gutierrez, similarly, emphasized that the roots
of the Department are firmly grounded in promoting commerce and
economic growth, and exercising stewardship of our oceans and
waterways.
I want to assure the Committee that, if confirmed, those
issues will have the highest priority for the Office of
Inspector General as well.
Mr. Chairman, that concludes my statement. I would be
pleased to respond to any questions you or Vice Chairman
Stevens may have.
[The prepared statement and biographical information of Mr.
Zinser follow:]

Prepared Statement of Todd J. Zinser, Nominated to be Inspector
General, U.S. Department of Commerce

Chairman Inouye, Vice Chairman Stevens and Members of the
Committee:
I am honored to appear before you today as President Bush's nominee
to be Inspector General of the Department of Commerce. I have been
privileged to testify before this Committee and its Subcommittees as
Acting Inspector General of the Department of Transportation (DOT), and
to have contributed to the Committee's vital oversight work while
leading the talented staff at the DOT Office of Inspector General
(OIG).
The Inspector General position in a large Federal agency such as
the Department of Commerce is a very important and challenging one. I
would like to thank Secretary Gutierrez for his expression of
confidence and the Committee for considering my nomination
expeditiously. I would also like to express my appreciation to
Inspector General Calvin Scovel, and former Inspector General Kenneth
Mead, for their support over the past 10 years at DOT. I would also
like to extend my thanks to the staff at the DOT Office of Inspector
General, with whom I have had the privilege of serving for the past 16
years. Finally, but not least, I want to thank my children, Ken,
Philipp, and Corinne, for their love and support, especially at this
time as I seek the Committee's approval for becoming Inspector General
at the Department of Commerce.
For the past 24 years, I have been a career civil servant. I began
as an investigator with the Department of Labor in 1983 and transferred
to the Department of Transportation, Office of Inspector General, in
1991 where, for the past 7 years, I have served as Deputy Inspector
General. From February 2006 to October 2006, I also served as DOT's
Acting Inspector General. It is my firm belief that throughout my
Federal service I have demonstrated integrity, objectivity, commitment
to good government, and leadership--characteristics essential to being
an Inspector General.
I am most proud of my 16 years conducting audits and investigations
of transportation issues and programs at the Department of
Transportation. I believe the OIG staff and I truly made a difference
in helping Congress and DOT in their efforts to provide for the
economic well-being and competitiveness of the country and ensure a
safer, more secure, efficient, and affordable transportation system. If
confirmed, I would strive to make the same contributions in support of
the important mission of the Department of Commerce.
It is against this backdrop that I would first like to express my
view of the Inspector General's role in the Federal Government.
The Inspector General Act was passed in 1978 and provides that the
Inspector General will conduct audits and investigations to improve the
economy, efficiency, and effectiveness of government programs and to
detect and prevent fraud, waste, and mismanagement. My view is that the
Department of Commerce, like the other major departments of government,
requires an independent, objective Inspector General, who will make
fair but tough, fact-based calls and report to the Secretary and the
Congress fully and forthrightly. Further, the Inspector General should
work with the Secretary, senior departmental managers, and Congress as
a force for positive change.
The Secretary, Deputy Secretary, and Inspector General must also
have a two-way open line of communication and it should be used on a
regular, ongoing basis. I understand full well that the same is true
for the relationship between the Inspector General and the Congress.
The Inspector General should work constructively with the Department
and should constantly strive for a relationship built upon mutual
respect and trust. However, the Inspector General also is under an
absolute obligation to report to the Congress about significant
problems. I know that Secretary Gutierrez fully shares this view and I
am confident that, if confirmed, the Office of Inspector General staff
and I would work hard to have a good and open working relationship with
the Secretary and the Congress.
My experience at the DOT OIG in working with the Secretary and
Congress has been entirely positive. I consider myself fortunate to
have worked with DOT and its modal administrations, the House and
Senate, Members of both parties, and various transportation
constituencies. This experience helped me learn about the
implementation and impact of national programs; understand how
decisions are made; appreciate the importance of providing policy-
makers with current, relevant, factual and objective information; and
conduct investigations and audits in a credible and constructive way.
I have learned that the hallmarks of independence, objectivity, and
nonpartisanship strengthen an IG's credibility, especially when the
findings of an audit or investigation run counter to what may have been
expected. I have also learned about the importance of Congressional
oversight in making progress and leading reform. My experience at the
DOT OIG has also taught me that government leaders want to get ahead of
problems and expect the Inspectors General and GAO to tell them about
risks and vulnerabilities and to provide their best recommendations for
solutions.
As Deputy Inspector General for the past 7 years, I managed a
talented staff of about 430 in directing audits and investigations. Our
work since 2000 has resulted in more than 700 reports covering a broad
range of audit findings in the transportation modes and approximately
140 testimonies to Congressional committees. The basic standards of
objectivity, independence, and high quality were fundamental in all our
work, reports, and testimony. Much of this work was undertaken in
response to requests from this Committee, and other Senate and House
authorization and appropriation committees.
I know first-hand the importance of the Inspector General function
and how a large Department and its subordinate agencies operate. The
audit and investigative functions of the Inspector General, under the
umbrella of independence and objectivity are directed toward
identifying and preventing fraud, waste, and inefficiency. If
confirmed, I am committed to applying this base of experience to the
audits and investigations performed by the Office of Inspector General
at the Department of Commerce. I am equally committed, if confirmed, to
providing the strong leadership necessary to address the current
challenges facing the Office of Inspector General. I will work with
this Committee and the Congress to address these challenges head on.
Mr. Chairman, the work of the Inspectors General covers a broad
front and in recent years the Inspector General community has been
required by Congress to issue annual reports on the top challenges
facing their respective departments. Those reports are intended to
focus attention on the most pressing issues and serve to aid both
Congress and the Administration in serving the American people.
This seems particularly important for the Department of Commerce.
As you noted, Mr. Chairman, in your oversight hearing for the
Department in August of this year, the business of the Department of
Commerce is complex and demanding. Its mission includes conserving and
managing the oceans, ensuring the accuracy of standards of measurement,
taking care of the census, providing economic opportunities, predicting
the weather, promoting commerce and innovation and good stewardship of
the resources that contribute to our economic prosperity. Secretary
Gutierrez similarly emphasized that the roots of the Department are
firmly grounded in promoting commerce and economic growth, and
exercising stewardship over our oceans and waterways. I want to assure
the Committee that, if confirmed, these issues will have the highest
priority for the Office of Inspector General as well.
Mr. Chairman, this concludes my statement. I will be pleased to
respond to any questions you or the other members of the Committee may
have.
______

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Todd J.
Zinser.
2. Position to which nominated: Inspector General, U.S. Department
of Commerce.
3. Date of Nomination: September 7, 2007.
4. Address:

Residence: Information not released to the public.

Office: U.S. Department of Transportation, West Wing, 7th
Floor, 1200 New Jersey Avenue, SE, Washington, DC 20590.

5. Date and Place of Birth: September 6, 1957; Cincinnati, OH.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).

Spouse: None (Divorced); Children: Kenneth Zinser, 18; Philipp
Zinser, 14; Corinne Zinser, 12.

7. List all college and graduate degrees. Provide year and school
attended.

Miami University, Oxford, OH, Master of Arts, Political
Science, 1980.
Northern Kentucky University, Bachelor of Arts, Political
Science, 1979.

8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.

U.S. Department of Transportation.

Deputy Inspector General, 2001-present.

Acting Inspector General, February-October 2006.

Assistant Inspector General for Investigations, 1996-2001.

Deputy Assistant Inspector General, 1994-1996.

Special Agent-in-Charge, New York, NY, 1991-1994.

U.S. Department of Labor, Office of Labor-Management Standards.

Deputy Regional Administrator, New York, NY, 1989-1991.

District Director, New Haven, CT, 1987-1989.

Labor Investigator, Cincinnati, OH, 1983-1987 (non-management).

Campbell County Kentucky Fiscal Court.

Director of Administration, 1983.

Executive Assistant, 1982-1983.

Austin Community College, Austin, TX, Instructor (Part-Time),
1981.

Texas House of Representatives, Research Assistant, 1981.

White House Intern, 1980.

9. Attach a copy of your resume. A copy is attached.
10. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last 5 years: None.
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last 5 years: None.
12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.

Senior Executive Association, 2002-present.

Robinson Ice Hockey Club, Fairfax, VA, President, 2006.

Boy Scouts of America, Troop 1347, Burke VA, 2002-Present.

Terra Centre Elementary PTA, Treasurer, 1999-2000.

13. Have you ever been a candidate for and/or held a public office
(elected, non-elected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount, and whether you are
personally liable for that debt. No.
14. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period: None.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.

Secretary's Gold Medal--Katrina Task Force.

Secretary's 9/11 Medal.

``Tool Time,'' Journal of Public Inquiry, Fall/Winter 1998.

Date Subject Cmte/Subcmte

9-20-2006 Observations on FAA's House Cmte on T&I
Oversight of Aviation Subcmte on Aviation
Safety
7-13-2006 Lower Manhattan House Cmte on Homeland
Reconstruction: Lessons Security
Learned from Large Subcmte on Management,
Transportation Projects Integration, and
Oversight
6-21-2006 Observations on Current House Cmte on T&I
and Future Efforts to Subcmte on Aviation
Modernize the National
Airspace System
5-4-2006 Household Goods Moving Senate Cmte on Commerce,
Fraud Science, and
Transportation
Subcmte on
Transportation and
Merchant Marine
3-28-2006 Perspectives on FAA's FY Senate Cmte on Commerce,
2007 Budget Request and Science, and
the Aviation Trust Fund Transportation
Subcmte on Aviation
3-16-2006 Pipeline Safety: Progress House Cmte on Trans. and
and Remaining Challenges Infra.
Subcmte on Highways,
Transit, and Pipelines
5-11-2005 Background Checks for House Cmte on Trans. and
Holders of Commercial Infra.
Drivers Licenses with Subcmte on Highways,
Hazardous Materials Transit and Pipelines
Endorsement
3-30-1995 FAA Training Programs House Cmte on
Appropriations
Subcmte on
Transportation

18. Given the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated, what in your background or employment experience do you
believe affirmatively qualifies you for appointment to the position for
which you have been nominated, and why do you wish to serve in that
position?
My experience as Deputy Inspector General at the Department of
Transportation for the past 6 years, including 8 months as Acting
Inspector General, and my other executive and managerial experience
with the DOT OIG and the Department of Labor gained during my 24 years
of Federal service, affirmatively qualifies me for this appointment.
I wish to serve as Inspector General at the U.S. Department of
Commerce because of the importance of the Inspector General in
preventing and detecting fraud, waste and abuse and promoting economy
and efficiency in Departmental programs and operations. I believe my
appointment could benefit the Department and the Office of Inspector
General at this critical time for the OIG. The important mission and
programs of the Department of Commerce require an Inspector General
focused on integrity, stewardship and getting the most for the
taxpayers' dollars.
19.What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
The operations of the Office of Inspector General should be held to
a higher standard within a Department since the OIG must, in turn,
audit and investigate the operations of the Department. If an OIG does
not have proper management and accounting controls for its own
operation, it diminishes the OIG's standing to make recommendations
with respect to the operations of other agencies of the Department. As
Deputy Inspector General at DOT, I directly supervise the operations of
the OIG, with total budgetary resources of approximately $70 million
and a staffing level of approximately 430 located throughout the United
States, including 12 Senior Executives.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
Promptly resolve ongoing investigations by the Congress and the
Office of Special Counsel concerning the operations of the OIG.
Address organizational and workforce issues resulting from those
investigations.
Plan and implement oversight of the Department of Commerce,
concentrating on those programs and operations of most importance to
the Administration and the Congress.

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
I have no financial arrangements, deferred compensation agreements
or other continuing dealings with business associates, clients, or
customers. Retirement accounts consist of retirement coverage under the
Civil Service Retirement System and annuity and IRA accounts disclosed
on my Public Financial Disclosure Report, SF278.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? If so,
please explain: None.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
My three children and I hold stock in a company with a wholly-owned
subsidiary in the broadcasting industry. Ethics Counsel for the
Department of Commerce has determined that I do not have to divest
these holdings, but if a matter arises in the Inspector General's
Office that could affect the financial interests of this wholly owned
subsidiary (or the parent company), it would be necessary that I recuse
myself from participating in the matter. In the event my participation
in a matter from which I am disqualified is important to the
government, I will seek advice from an ethics official on means to
resolve any conflict of interest, such as by divestiture or by
obtaining a conflict of interest waiver.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: None.
5. Describe any activity during the past 10 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy: None.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
I will seek and closely follow the advice of the Department's
Ethics Counsel in accordance with my Ethics Agreement with the
Department of Commerce, which is documented by memorandum dated August
2, 2007, to Barbara S. Fredericks, Assistant General Counsel for
Administration.

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain.
I have never been disciplined or cited for a breach of ethics.
However, within weeks of my becoming Acting Inspector General at DOT in
February 2006, I self-reported to the President's Council on Integrity
and Efficiency (PCIE), an anonymous complaint that I received. The
letter asserted that with the departure of the former DOT IG, I would
be ``unchecked'' in my ``misconduct and mismanagement.'' The six
allegations contained in the letter all related to my management during
the tenure of the former IG but provided no explanation why these
allegations were not raised with the former IG during the 6 years I
served as his Deputy. After review by the PCIE Integrity Committee, the
PCIE determined that the complaint did not establish specific
wrongdoing and referred the complaint back to me and the Department.
The PCIE also received an anonymous complaint in September 2006,
alleging that I was ``covering up'' an internal investigation into a
stolen DOT OIG laptop computer. In response, the Acting Deputy
Inspector General wrote to the PCIE and informed them that he had been
assigned by me, weeks before the date of the complaint, to conduct the
investigation and that I was not involved in managing the
investigation. The PCIE also closed its file on this allegation.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? If so, please explain: No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain: No
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain: No.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain: No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: None.

D. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with
deadlines for information set by Congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect Congressional witnesses and whistleblowers from reprisal for
their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.

RESUME OF TODD J. ZINSER

Professional Experience
U.S. Department of Transportation, Office of Inspector General,
Washington, D.C. Deputy Inspector General, Career Senior Executive
Service (August 2001 to Present)
Duties: Lead the Office of Inspector General oversight of all
Departmental programs and operations. Manage the daily operations of
the OIG--Fiscal Year 06 budgetary resources of $70 million and
authorized staffing level of 430. Supervise 12 members of the Senior
Executive Service responsible for audits, investigations, legal and
economic analysis. Served as Acting Inspector General from February 11,
2006 to October 26, 2006.
Examples of Fiscal Year 06 accomplishments include:

Presented testimony before Congress 11 times (personally
testified 6 times);

Issued audit reports which contained over 200
recommendations which identified more than $890 million in
questioned costs and funds for better use; and recovery of
approximately $71 million; and

Conducted investigations resulting in 169 indictments; 177
convictions; fines, restitution and recoveries of approximately
$48 million, and 210 administrative actions and debarments.

U.S. Department of Transportation, Office of Inspector General

Assistant Inspector General for Investigations--SES--
(January 1996 to August 2001).
Deputy Assistant Inspector General for Investigations
(October 1994 to January 1996).
Special Agent-in-Charge, New York, NY (October 1991 to
September 1994).

U.S. Department of Labor, Office of Labor Management Standards

Deputy Regional Administrator, New York, NY (May 1989 to
October 1991).
District Director, New Haven, CT (October 1987 to May 1989).
Labor Investigator, Cincinnati, OH (December 1983 to October
1987).

Education
Miami University, Oxford, Ohio, Masters of Art, Political Science,
1980.

Northern Kentucky University, Bachelor of Arts, Political Science,
1979.

Honors and Awards
Secretary's Gold Medal--Katrina Task Force (2006); Secretary's 9/11
Medal.

References
Available upon request.

The Chairman. I thank you very much, sir. Your previous two
Department Inspectors General resigned in the midst of
controversy. What do you intend to do to restore confidence in
your Department, and also on this Committee?
Mr. Zinser. Thank you, Senator. I am more familiar with the
circumstances involving the immediately preceding Inspector
General at the Department of Commerce. I am also aware that
there are a number of Inspectors General that are facing
scrutiny in the government. I think it's unfortunate. I think
my plan is to first resolve whatever outstanding investigations
are ongoing at the Department of Commerce.
I would also address the workforce issues that have been
created by those investigations. I would also like to prepare
an effective oversight plan for the office and begin again
working with the Congress and the Department to oversee the
important programs that the Department is responsible for. In
my experience, sir, I think we have to let the work of the
office rebuild its reputation and contribute to the oversight
that is necessary for the Department of Commerce.
The Chairman. How would you rate the morale in your
Department?
Mr. Zinser. I don't have any firsthand knowledge at this
point, sir, but my understanding is that morale is low.
The Chairman. I thank you very much for your candor.
Mr. Vice Chairman?
Senator Stevens. Thank you very much.
You have indicated in your written statement that you want
to increase communication between your office and Congress. You
just mentioned that here. What do you have in mind?
Mr. Zinser. Sir, I can only respond based on the experience
that I have had at my current employment at the Department of
Transportation Office of Inspector General.
Senator Stevens. You are not intending to send up lobbyists
or something for the IG's Office are you?
Mr. Zinser. No sir, I want to have an open communication
with the staff of the committees of jurisdiction, make sure
that we are aware of the issues that they view as important,
and determine whether or not there is any work that the
Department of Commerce Office of Inspector General could do to
contribute to that. That is what I would have in mind by
opening communications more, in terms of building an oversight
agenda for our office.
Senator Stevens. The Chairman asked about the morale of the
Department. Now, do you think morale is something the Inspector
General should be concerned with?
Mr. Zinser. Sir, I took the question to mean the morale of
the Office of Inspector General at the Department of Commerce.
I do think that would be an important issue to address straight
away, sir.
Senator Stevens. I misunderstood. I thought the Chairman
was speaking about the whole Department.
The Chairman. No, just----
Senator Stevens. Just your own office.
Mr. Zinser. Yes, sir.
Senator Stevens. What's your opinion about the morale of
the whole Department?
Mr. Zinser. Well, again sir, I don't have any firsthand
experience, but from those who I've spoken to about the
Department of Commerce, I've heard nothing but good things
about the people that work there and they are very good to work
with. In my meetings with Secretary Gutierrez and former Deputy
Secretary Sampson, I did get a good feeling that they
understand the role of the Inspector General, they appreciate
it, and that they are looking forward to having a confirmed
Inspector General.
Senator Stevens. And you have been the acting Inspector
General at one time, right?
Mr. Zinser. Yes, sir, with the Department of
Transportation.
Senator Stevens. Oh, you have not been acting in this
Department?
Mr. Zinser. No, sir.
Senator Stevens. Well, thank you, thank you very much for
your service. I think this has got to be one of the toughest
jobs, to be within the Department, yet be the critic of it. So,
I wish you well.
Mr. Zinser. Thank you, sir.
The Chairman. And I wish you well, sir. Thank you.
Mr. Zinser. Thank you, Mr. Chairman.
The Chairman. Our next witness is the Commissioner-
Designate of the Federal Maritime Commission, Mr. Carl B.
Kress.
Mr. Kress, welcome, sir.

STATEMENT OF CARL B. KRESS, NOMINATED TO BE COMMISSIONER,
FEDERAL MARITIME COMMISSION

Mr. Kress. Thank you, Mr. Chairman, Mr. Vice Chairman,
Members of the Committee. Thank you for this opportunity to
appear before you today. I have submitted a statement as well,
and would like to summarize those remarks here.
The Chairman. Without objection, so ordered.
Mr. Kress. Thank you. I'm honored to have been nominated by
the President to serve as Commissioner on the Federal Maritime
Commission and to be considered by this Committee.
Before I get started with my comments, I would like to take
a moment to express particular thanks to my parents, retired
U.S. Army Corps of Engineers Colonel Carl Franklin, and Mrs.
Roswitha Kress who, unfortunately, were not able to make it
today, but I think due to the wonders of the World Wide Web,
may be watching from California and Germany respectively at
this time.
I, also would like to thank for her support my wonderful
fiancee, Molly Gower, who is here, as well as her family who I
would like to introduce: her parents, Mr. and Mrs. John and
Mary Gower, and Cathy Muha, her sister, and Richard Muha, her
nephew, who is a star lacrosse player at Richard Montgomery
High School in Rockville, I wanted to get that on the record.
And, of course, many thanks to all of my friends and
colleagues who have been with me over the years, many of whom
are here today, as well.
Ensuring both the efficiency and security of our Nation's
trade flows is a complex and challenging task in this post-9/11
environment, and I seek the opportunity to contribute to that
vital goal as a Commissioner.
The Federal Maritime Commission's role as the independent
body responsible for regulating ocean-borne transportation in
the foreign commerce of the United States, places the Agency in
a key position in America's commerce.
The Commission fosters a fair, efficient and secure
maritime transportation system through its policies and
regulations, protects U.S. maritime commerce from unfair trade
practices, works with shippers to ensure compliance with U.S.
shipping laws, and assists in dispute resolution.
I believe that my tenure at the U.S. Trade and Development
Agency, my experience on the personal staff of a Commissioner
at the U.S. International Trade Commission and my background as
an attorney in private practice, together provide a strong
foundation for successfully advancing the Federal Maritime
Commission's mission.
If confirmed, I will execute my duties with fairness and
objectivity. This will include a careful review of the facts
and applicable laws and regulations for all matters coming
before the Commission.
Additionally, it will be my ongoing responsibility to reach
out to, and work with, the Commission's many important
stakeholders, including shippers, marine terminal operators,
ocean transportation intermediaries, private citizens and U.S.
exporters and importers.
To best serve these important constituencies, I look
forward to collaborating with each of them, and to establishing
strong relationships with you and the members of your staff in
the service of our joint goals of ensuring the safety,
security, and efficiency of our Nation's maritime commerce.
Again, Mr. Chairman, and distinguished Members of the
Committee, I appreciate the opportunity to appear before you
today. Thank you for your, and your staff's, consideration of
my nomination. I would be pleased to answer any questions that
you have.
[The prepared statement and biographical information of Mr.
Kress follow:]

Prepared Statement of Carl B. Kress, Nominated to be Commissioner,
Federal Maritime Commission

Mr. Chairman, and Members of the Committee, thank you for the
opportunity to appear before you today.
I am honored to have been nominated by the President to serve as a
Commissioner on the Federal Maritime Commission, and to be considered
by this Committee.
I would like to take a moment to express particular thanks to my
parents, retired Army Col. Carl Franklin and Roswitha Kress, for their
guidance and support over the years. They were unfortunately not able
to fly out from California today but are certainly here in spirit. I
would also like to thank for her support my wonderful fiancee, Molly
Gower, who is here today, as is her family, and my many friends and
colleagues who have been with me over the years.
Ensuring both the efficiency and security of our Nation's trade
flows is a complex and challenging task in this post-9/11 environment,
and I seek the opportunity to contribute to that vital goal as a
Commissioner.
Trade is a cornerstone of our Nation's economy, and maritime
commerce makes up the lion's share. According to the American
Association of Port Authorities, 99 percent of U.S. trade by weight and
61 percent by value is carried by ocean-going vessels, and in 2006 more
than 8 million U.S. jobs were related to port activities.
The Federal Maritime Commission's role as the independent body
responsible for regulating ocean borne transportation in the foreign
commerce of the United States places the agency in a key position in
America's commerce. The Commission fosters a fair, efficient and secure
maritime transportation system through its polices and regulations,
protects U.S. maritime commerce from unfair foreign trade practices,
works with shippers to ensure compliance with U.S. shipping laws, and
assists in dispute resolution. If confirmed, I look forward to applying
my experience in international trade law and practice, and my years as
a leader in Federal service, to ensuring the Commission's continued
success in executing its important roles.
I believe that my tenure at the U.S. Trade and Development Agency
(USTDA), my experience on the personal staff of a Commissioner at the
U.S. International Trade Commission (USITC), and my background as an
attorney in private practice together provide a strong foundation for
successfully advancing the Federal Maritime Commission's mission.
I have worked for the past 8 years for the Federal Government on
trade-related issues, at the USITC and USTDA. My 6 years at the U.S.
Trade and Development Agency have been focused on the agency's mission
of connecting U.S. exports of goods and services with economic
development projects around the globe. As a Regional Director I am
responsible for supporting economic development projects and pursuing a
more level playing field for U.S. exporters in the Middle East and
North Africa. Previously, as the agency's Chief of Staff, I took part
in all aspects of leading and managing the agency.
As Counsel to a Commissioner at the USITC, an independent
regulatory agency like the Federal Maritime Commission, my
responsibilities covered all aspects of the Commissioner's work,
including application of laws and regulations to cases before the
USITC. In private practice with a large international law firm I was
responsible for legal and regulatory matters that would be applicable
in reviewing disputes that come before the Commission.
If confirmed, I will execute my duties with fairness and
objectivity. This will include a careful review of the facts and
applicable laws and regulations for all matters coming before the
Commission. Additionally, it will be my ongoing responsibility to reach
out to and work with the Commission's many important stakeholders,
including shippers, marine terminal operators, ocean transportation
intermediaries, private citizens, and U.S. exporters and importers. To
best serve these important constituencies, I look forward to
collaborating with each of them, and to establishing a strong
relationship with you and the members of your staff, in the service of
our joint goals of ensuring the safety, security, and efficiency of our
Nation's maritime commerce.
Again, Mr. Chairman and distinguished members of the Committee, I
appreciate the opportunity to appear before you today, and thank you
for your and your staff's consideration of my nomination. I would be
pleased to answer any questions that you have.
______

A. BIOGRAPHICAL INFORMATION

1. Name (including any former names or nicknames used): Carl
Bernard Kress.
2. Position to which nominated: Commissioner, Federal Maritime
Commission.
3. Date of Nomination: August 2, 2007.
4. Address (List current place of residence and office addresses):

Residence: Information not released to the public.

Office: U.S. Trade & Development Agency, 1000 Wilson Blvd.,
Suite 1600, Arlington, VA 22209.

5. Date and Place of Birth: February 4, 1964; Ft. Belvoir,
Virginia.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage): Not married; no
children.
7. List all college and graduate degrees. Provide year and school
attended:

LL.M, University of Hamburg, Germany, 1996.

J.D., UCLA, 1995.

B.A., U.C. Berkeley, 1987.

8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.

Regional Director for the Middle East, North Africa & South
Asia, U.S. Trade & Development Agency.

Chief of Staff and Senior Advisor to the Director, U.S. Trade &
Development Agency.

Counsel to the Commissioner, U.S. International Trade
Commission.

Associate, McDermott Will & Emery.

Law Clerk, Feddersen Laule Scherzberg & Ohle Hansen Ewerwahn.

Summer Associate, McDermott Will & Emery.

Research Assistant, UCLA Law Professor George Brown.

Research Assistant, UCLA Law Professor Arthur Rosett.

Research Assistant, UCLA Law Professor Susan French.

Legislative Correspondent, U.S. Senator John Seymour.

Precinct Director, San Francisco County Republican Central
Committee 1.

Legislative Assistant, Mayer Brown & Platt.

Legislative Assistant, U.S., Mayer Brown & Pratt.

Legislative Assistant, U.S. Representative, Charles ``Chip''
Passion, Jr.

9. Attach a copy of your resume. A copy is attached.
10. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last 5 years: None.
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last 5 years.
Member of the Board, Washington Foreign Law Society.
12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent, or
religious organization, private club or other membership organization.
Include dates of membership and any positions you have held with any
organizations. Please note whether any such organizations restricts
membership on the basis of sex, race, color, religion, national origin,
age, or handicap.

American Society of International Law. Member since 1997.

Bar of the District of Columbia. Member since 1997.

California State Bar. Member since 1996. Currently an inactive
member.

Washington Foreign Law Society. Member since 2004. Member of
the Board of Directors since June 2007.

St. Mark's Episcopal Church, Washington, D.C. Member since
2002.

Appalachian Mountain Club. Member from 2003-2005.

Phi Beta Kappa. Member since 1987.

Friends of the National Zoo. Member 2002, 2006-2007.

Washington Area Music Association. Member since 1999. Member of
Education Committee in 2001.

The Mankind Project. Member since 1997. The Mankind Project is
a men's 501(c) educational organization. www.mkp.org.

The Goethe Institute. Member since 1999.

WAMU Radio. 2005-2006.

Washington International Trade Association. Member 2000-2003.

13. Have you ever been a candidate for and/or held a public office
(elected, nonelected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount, and whether you are
personally liable for that debt. No.
14. Itemize all political contributes to any individual, campaign,
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period.

Contributions:

Connie Morella For Congress Committee, $500.

Bush-Cheney 2004 (Primary) Inc., $500.

Bush-Cheney 2004 Compliance Committee Inc., $500.

Participated in 72 Hour Task Force Legal Team for Republican
National Committee, Nov. 2004.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.
Phi Beta Kappa.
16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.

The U.S. Government and Post-Conflict Economic Reconstruction,
11 UC Davis J. Int'l L. & Pol'y 75 (2004).

The 1996 Telekommunikationsgesetz and the Telecommunications
Act of 1996: Toward More Competitive Markets in
Telecommunications in Germany and the United States, 49 Fed.
Com. L.J. 551 (1997).

Comment, Beyond Nahrstedt: Reviewing Restrictions Governing
Life in a Property Owners Association, 42 UCLA L. Rev. 837
(1995).

17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or
nongovernmental capacity and specify the date and subject matter of
each testimony: None.
18. Given the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated, what in your background or employment experience do you
believe affirmatively qualifies you for appointment to the position for
which you have been nominated, and why do you wish to serve in that
position?
My tenure as a senior manager at the U.S. Trade and Development
Agency (USTDA), my experience on the personal staff of a Commissioner
at the U.S. International Trade Commission (USITC), and my background
as an attorney in private practice together provide a strong foundation
for successfully advancing the Federal Maritime Commission's mission of
serving our Nation's maritime transportation needs. I have worked for
the past 8 years for the Federal Government on trade-related issues, at
the USITC and USTDA. In particular, during the past 6 years at USTDA my
responsibilities have included the development and implementation of
many transportation projects. My time as Chief of Staff of USTDA has
also given me valuable experience in all aspects of leading and
managing a Federal agency, such as personnel, administrative,
information technology, budget, policy, and program matters. As Counsel
to a Commissioner at the USITC, an independent regulatory agency like
the Federal Maritime Commission, my responsibilities covered all
aspects of the Commissioner's work, including application of laws and
regulations to cases before the USITC. My time as an attorney with a
large law firm also provided experience in evaluating legal and
regulatory matters that would be applicable in reviewing disputes that
come before the Commission.
I seek this position because it would be an opportunity to build
upon my prior experience in government service in trade, commerce, and
law, and to apply that experience and my management skills to the
challenges facing America's maritime transport system. Ensuring both
the security and efficiency of our Nation's trade flows is a complex
and challenging task in this post-9/11 environment, and I seek the
opportunity to contribute my skills and experience to that vital goal.
I grew up in a military family that emphasized the value of government
service. I have taken that upbringing to heart by embarking on a career
of civilian government service, and joining the Commission would be a
significant opportunity to continue that tradition.
19. What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
As a Commissioner I would share with my colleagues on the Federal
Maritime Commission full responsibility to lead and manage the
Commission in a manner consistent with the highest standards of
professionalism and effectiveness. Effective and efficient management
of an organization's resources is fundamental--indeed crucial--to the
accomplishment of its mission. Therefore, it is a critical
responsibility of those charged with its leadership to devote whatever
time and attention is required to achieve sound management. I would
feel comfortable accepting that responsibility based on my considerable
experience at two Federal agencies of similar size to the FMC. In
particular, as the Chief of Staff of the USTDA and a member of its
executive committee, I managed the budget formulation process,
including the Congressional and OMB submissions; provided counsel to
the Director on human resource planning, staffing, and organization;
and through the executive committee provided recommendations to the
Director on a host of management issues, such as contracting and
finance. Consequently, if confirmed, I will work with my fellow
Commissioners to effectively marshal the human, financial, information
and other administrative resources available to achieve the goals,
objectives, and programs of the Commission.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
If confirmed, I would focus in particular on three key management
priorities that represent top challenges for any Federal agency: (1)
the recruitment, development, leadership, and retention of human
resources; (2) continued modernization of information technology
systems; and (3) the need for accurate information, in this case
regarding foreign trade and regulatory practices. Concurrent with
taking on my responsibilities with respect to the Commission's
programmatic activities, I would immediately focus my attention on
thoroughly understanding what particular issues face the Commission in
these areas and working to ensure excellence in Commission performance
in all three.

i. Attracting, training, leading, and retaining qualified and
dedicated employees are central to the Federal Maritime
Commission's operations, as a skilled and dedicated workforce
is the lifeblood of any organization. Like all Federal
agencies, the Commission must compete with the private sector
for the best available talent. It is thus essential that the
Commission be organized, managed, and led in such manner as to
attract and retain such talent, as well as provide its
employees with the tools with which to accomplish their
responsibilities as effectively as possible. This is
particularly critical today, as the Federal Government as a
whole faces the retirement of large numbers of key personnel.

ii. The modernization of IT systems has been and continues to
be a key need of any agency, consistent with government-wide IT
and Internet priorities and requirements. A review of the
Federal Maritime Commission's recent Annual Reports and other
documents shows a strong and consistent campaign to modernize
the Commission's IT systems, in order to both increase online
access for external clients and improve internal operations.
Continuing this process of ensuring that the Commission's
systems are user-friendly, practical, widely-accessible, and
secure must be an ongoing high priority.

iii. The Federal Maritime Commission's Mission includes
``Protect[ing] U.S. maritime commerce from unfair foreign trade
practices and market-distorting activities.'' Critical to
achieving that goal is to gather accurate and comprehensive
information regarding foreign practices and legal and
regulatory structures, and to evaluate effectively that
information. This is essential in order to craft appropriate
action and make recommendations for ensuring the continued
competitiveness of the U.S. maritime transportation system. My
experience at both the USITC and USTDA showed the importance of
having accurate information regarding foreign activities, so
that the agencies could respond properly in pursuing a level
playing field for our Nation's international commercial
activities.

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers. Please include information related to retirement
accounts.
My 401(k) retirement account from my time with the law firm
McDermott Will & Emery continues to be managed under the firm's plan.
Neither I nor the firm has made any contributions to my account since I
left the firm in January 1999.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, or practice with any business, association or
other organization during your appointment? If so, please explain. No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated: None.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: None.
5. Describe any activity during the past 10 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy: None.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
Should any matter arise in which there appears to be a potential
conflict, I would consult with the Commission's Designated Ethics
Officer and, if necessary, develop an appropriate means of resolving
such conflict.

C. LEGAL MATTERS.

D. RELATIONSHIP WITH COMMITTEE

RESUME OF CARL B. KRESS

Professional Experience
U.S. Trade and Development Agency, Arlington, VA.
Regional Director for the Middle East, North Africa, and South
Asia, 2004-present.

Responsible for developing and implementing all program
activities in the MENASA region, which includes most of the
Arab world and spans from Morocco to Bangladesh. Supervise
staff and contractors in the United States, India and Thailand
in identifying and pursuing projects that support host country
economic development and U.S. trade opportunities. Responsible
for obligating $8-$10 million in program funds each year for
economic development activities, including technical
assistance, feasibility studies, conferences, and reverse trade
missions. Projects are selected with particular attention to
sectors where foreign project sponsors seek partnerships with
U.S. providers of goods and services, such as in information
and communications technology (ICT), transportation, and
energy. Representative project examples include:

U.S.-India Aviation Cooperation Program. In collaboration
with the Federal Aviation Administration, the Indian
Ministry of Civil Aviation, and U.S. private sector
representatives, spearheaded formation of program dedicated
to coordinating U.S. public and private sector solutions to
Indian aviation sector development needs.

Transportation Solutions for South Asia Trade. Organized
conference focused on trade-related transportation
infrastructure project opportunities in South Asia.

Jordanian National Freight Information and Transportation
Hub Project. Supported pilot project using U.S. technology
to manage the documentation required for transporting cargo
into and out of Jordan's land border crossings and the Port
of Aqaba, which has resulted in significant efficiency
gains for truckers and shippers.

Making Connections in the Middle East & North Africa
Conference. Organized conference that highlighted ICT
project opportunities for U.S. suppliers and provided a
forum for high-level policy dialogue among U.S. and MENA
senior ICT officials.

Chief of Staff and Senior Advisor to the Director, 2001-2004.
Senior Bush Administration appointee in position encompassing
all aspects of leading a foreign assistance agency with a
yearly budget of $50-$60 million and a staff of 50 employees.

Member of executive management committee. Actively
involved with all administrative, program, and policy
decision-making in the agency, including:

review and approval of all agency program
activities world-wide;

management of budget formulation process,
including Congressional and Office of Management and
Budget submissions;

providing counsel to the Director on human
resource planning, staffing, and organization; and

providing recommendations through the
executive committee to the Director on all management
issues, including contracting, finance, IT, and
outreach.

Served in place of the Director as agency principal on
Secretary of Commerce-led trade missions and at other
events world-wide.

Served as agency's White House liaison.

Represented USTDA in meetings with U.S. and foreign
business leaders, foreign and domestic senior government
officials, and with Congressional staff.

U.S. International Trade Commission, Washington, D.C.
Counsel, Office of Commissioner Thelma J. Askey, 1999-2001.

Advisor to the Commissioner on legal, policy and factual issues
relating to antidumping and countervailing duty investigations,
safeguard actions, and intellectual property rights protection
cases. Advised the Commissioner in preparation for votes,
hearings, and policy decisions.

McDermott, Will & Emery, Washington, D.C.
Associate, Federal Regulatory Practice Group, 1996-1999.

Member of international trade practice group focused on the
following areas: GATT/WTO; customs; antidumping and
countervailing duty; and administrative law. Significant
responsibilities included:

Resolved customs issues, including tariff classification
and country of origin matters.

Prepared Antiboycott Law and Foreign Corrupt Practices Act
manuals for multinational corporation and delivered
presentations to corporate executives.

Office of U.S. Senator John Seymour, Legislative Aide, Washington,
D.C., 1991-1992.

Issue Areas: International Trade, Transportation, and Inter-
Governmental Affairs.

San Francisco County Republican Central Comm., Precinct Director,
San Francisco, CA 1990.

Directed Get-Out-The-Vote program in San Francisco County.

Mayer Brown & Platt, Legislative Assistant, Washington, D.C., 1989-
1990.

Issues Areas: Tax and International Trade.

Congressman Charles ``Chip'' Pashayan, Jr., Legislative Assistant,
Washington, D.C., 1988-1989.

Issue Areas: Social Security, Science and Technology,
Transportation, and Healthcare.
Education
University of Hamburg, Germany, Faculty of Law--LL.M., 1996.

Received master's degree in program for foreign attorneys.
Particular focus on telecommunications and comparative
contracts law. Degree and thesis awarded Magna Cum Laude.

UCLA School of Law-- J.D., 1995.

UCLA Law Review, Articles Editor.

UCLA Pacific Basin Law Journal, Assistant Editor.

UC Berkeley--B.A., History and Religious Studies, 1987.

Phi Beta Kappa.

High Distinction in General Scholarship.

Religious Studies Department Highest Honors.

Professional Memberships

Bars of the District of Columbia and California (inactive).

American Society of International Law.

Washington Foreign Law Society--Member of the Board.

The Chairman. I thank you very much. And I'll call on the
other nominee, Alan Paul Anderson.

STATEMENT OF HON. A. PAUL ANDERSON, RENOMINATED TO BE
COMMISSIONER AND CHAIRMAN-DESIGNATE, FEDERAL MARITIME
COMMISSION

Mr. Anderson. Thank you, Mr. Chairman, Senator Stevens. My
name is Paul Anderson of Florida. Thank you for scheduling this
hearing today, it is truly an honor and a privilege to appear
before you and the distinguished members of the Commerce,
Science, and Transportation Committee.
I'd like to express my sincere gratitude and appreciation
to my senior Senator, Senator Bill Nelson, for his very
gracious, kind introduction to the Committee.
At this time, I'd like to introduce some of my family
members that are here, Mr. Chairman. With me today is my mother
and father, Captain Perry Anderson, United States Marine Corps,
Retired, a distinguished veteran and his loving wife, Ann.
Mom and Dad, thank you for all of your support, love and
encouragement.
My wonderful wife, Sarah, and our newest member of the
Anderson clan, Jordan, who has taken to--learned early to take
instructions well, he's been a wonderful baby today.
I also want to recognize Commissioner Hal Creel, as a
former staff member of this Committee, who is here today, as
well as Commissioner Rebecca Dye, two of my colleagues on the
Commission, and also, former Commissioner Ming Shu, who
traveled here from California, as well as many of the staff and
longtime personal friends that are here in the audience today.
I really appreciate your support.
As the independent regulatory agency responsible for
overseeing ocean-borne transportation and the U.S. foreign
commerce, the Federal Maritime Commission works to ensure a
fair and competitive environment in which carriers, shippers,
and other stakeholders can operate with the minimum of
government intervention, while being protected from unfair
foreign shipping practices.
Working within its statutory framework, the Commission has
developed a regulatory system that allows for necessary
oversight with minimal disruption to the efficient flow of U.S.
foreign commerce.
As this Committee knows firsthand, maritime shipping is a
dynamic and changing industry. During the past 5 years, the
number of 20-foot containers coming into the United States has
increased dramatically, from eleven and one-half million TEUs,
to almost 20 million TEUs in 2006. This rapid increase in trade
volume has highlighted the need to address improvements to our
Nation's transport infrastructure.
In addition, since September 11, 2001, we have recognized
the importance of securing the ocean transportation system,
while maintaining the free flow of trade.
While the FMC is not on the front line of ensuring the
security of our ocean-borne commerce, we are committed to
helping frontline security agencies ensure the safe and
efficient movement of cargo to and from the United States.
In this regard, the Commission's oversight of ocean common
carriers, marine terminal operators and its licensing and
bonding of ocean transportation intermediaries is a vital link
in the effort to protect our Nation's seaports.
During my career, I have worked in several regulated
industries, including 9 years in the maritime sector with an
international, diversified transportation company, which
operated Jones Act tankers, offshore supply vessels, tug and
barges.
This experience, combined with leadership and education,
economic development and community service, has prepared me for
my current role as FMC Commissioner, and has given me an
understanding of the issues faced in the private sector, and
the maritime transportation business. I've had the opportunity
to learn firsthand, to work in a port, to work for a maritime
company, the importance of our maritime transportation system
to our Nation's economy.
If confirmed by the Senate, I will continue to work to
fairly and objectively fulfill the Federal Maritime
Commission's statutory responsibilities, while making every
effort to listen to the Commission's stakeholders, in order to
reach balanced, and well-informed decisions.
Thank you, Mr. Chairman, Senator Stevens, Members on the
Committee, and your staff, for your time and consideration
today. I appreciate the opportunity to appear before you today.
If confirmed, I look forward to working with you and your staff
as the Commission fulfills its responsibilities.
I'll be happy to answer any questions. Thank you.
[The prepared statement and biographical information of Mr.
Anderson follow:]

Prepared Statement of Hon. A. Paul Anderson, Renominated to be
Commissioner and Chairman-Designate, Federal Maritime Commission
Mr. Chairman,

Thank you for scheduling this hearing today. It is an honor and a
privilege to appear before you and the distinguished Members of the
Commerce, Science, and Transportation Committee. I would like to
express my sincere gratitude to my Senator, Bill Nelson, for his
introduction to the Committee.
At this time I would like to introduce my family:
My mother and father, Capt. Perry Anderson, Retired United States
Marine Corps and distinguished veteran and his loving wife Ann. Mom and
Dad thank you for all of your support, love and encouragement. My
wonderful wife Sarah and our newest member of the Anderson clan,
Jordan. I also want to recognize Commissioner Hal Creel who used to
work on this Committee, former Commissioner Ming Hsu and many of the
staff from the agency. Thank you all for your support.
As the independent regulatory agency responsible for overseeing
ocean borne transportation in U.S. foreign commerce, the Federal
Maritime Commission works to ensure a fair and competitive environment
in which carriers, shippers, and other stakeholders can operate with a
minimum of government intervention, while being protected from unfair
foreign shipping practices. Working within its statutory framework, the
Commission has developed a regulatory system that allows for necessary
oversight with minimal disruption to the efficient flow of U.S. foreign
commerce.
As this Committee knows first-hand, maritime shipping is a dynamic
and changing industry. During the past 5 years, the number of 20-foot
containers coming into United States ports has increased dramatically,
from 11 and one-half million TEUs in 2001, to almost 20 million TEUs in
2006. This rapid increase in trade volume has highlighted the need to
address improvements to our Nation's transport infrastructure. In
addition, since September 11, 2001, we have recognized the importance
of securing our ocean transportation system, while maintaining the free
flow of trade.
While the FMC is not on the front line of ensuring the security of
our ocean borne commerce, we are committed to helping front-line
security agencies ensure the safe and efficient movement of cargo to
and from the United States. In this regard, the Commission's oversight
of ocean common carriers, marine terminal operators, and its licensing
and bonding of ocean transportation intermediaries (``OTIs''), is a
vital link in the effort to protect our Nation's seaports.
During my career I have worked in several regulated industries,
including 9 years in the maritime sector with an international,
diversified transportation company. This experience, combined with
leadership in education, economic development, and community service,
has prepared me for my current role as FMC Commissioner, and has given
me an understanding of the issues facing the private sector in the
maritime transportation business. I have had the opportunity to learn
first-hand the importance of our maritime transportation system to our
Nation's economy.
If confirmed by the Senate, I will continue to work to fairly and
objectively fulfill the Federal Maritime Commission's statutory
responsibilities, while making every effort to listen to Commission
stakeholders in order to reach balanced and well-informed decisions.
Thank you, Mr. Chairman and distinguished Senators on the Committee
and your staff, for your time and consideration. I appreciate the
opportunity to appear before you today. If confirmed, I look forward to
working with you and your staff as the Commission fulfills its
statutory responsibilities. I will be happy to answer any questions
that you may have for me at this time.
______

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Alan Paul
Anderson.
2. Position to which nominated: Federal Maritime Commissioner.
3. Date of Nomination: August 2, 2007.
4. Address (List current place of residence and office addresses):

Residence: Information not released to the public.

5. Date and Place of Birth: September 16, 1959; Beaufort, South
Carolina.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).

Sarah Marlene Anderson, Head Coach, St. Thomas Aquinas High
School; Chase Kulp, 20; Jordan Paul Anderson, 1 day old.

7. List all college and graduate degrees. Provide year and school
attended.

Harvard University's John F. Kennedy School of Government,
1997, Program for Senior Managers in Government.

University of Florida, Bachelor of Science, 1982 attended 1979-
1982.

Menlo College, Menlo Park, CA attended 1978.

8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.

Commissioner, Federal Maritime Commission.

Vice President, Public Affairs and Government Relations, JM
Family Enterprises, Inc. 1994-2003.

Director, Public Affairs, Hvide Marine, Inc. 1987-1994.

Field Director, Bob Martinez for Governor, 9/86-12/86.

Special Assistant, United States Senator Paula Hawkins, 1983-
1984, 1984-1986.

Press Secretary, U.S. Congressman Connie Mack Campaign, 1984.

Van Poole for U.S. Senate Campaign, 1982.

9. Attach a copy of your resume. A copy is attached.
10. List any advisory, consultative, honorary, or other part-time
service of positions with Federal, State, or local governments, other
than those listed above, within the last 5 years.

United States Senator Connie Mack Academy Advisory Board, 1989-
2000.

Broward Community College Board of Trustees, 1999-2003.

Broward County Port Director Search Committee, 2003.

11. List all positions held as an officer, director, trustee,
proprietor, agent, representative, or consultant of any corporation,
company, firm, partnership, or other business, enterprise, educational,
or other institution with the last 5 years.

Chairman, Board of Trustees, Broward Community College.

Chairman, Board of Directors, Broward Alliance.

Vice President, JM Family Enterprises, Inc.

Southeast Toyota Distributors LLC.

World Omni Financial Corporation, Inc.

JM&A, Inc.

Fidelity Insurance, Inc.

Board of Directors, Giant Holdings, Inc.

Board of Directors, Landmark Bank, 2000-2003.

Broward Education Foundation, 2002-2003.

Orange Bowl Committee, member, 2000-present.

Tower Club, member, 1994-present.

Broward Navy Days, Founder, member, Board of Directors, 1991-
2003.

Museum of Discovery & Science, member, Board of Directors,
1996-2003.

Junior Achievement of South Florida, member, Board of
Directors, 1998-2003.

Coral Ridge Country Club, 2000-present.

U.S. Senator Connie Mack's Academy Advisory Board, 1989-2000.

Public Affairs Council, member, Board of Directors, 1998-2003.

Florida Chamber of Commerce, member, Board of Governors, 1998-
2003.

Florida Tax Watch, member, Board of Directors, 2000-2003.

Deliver the Dream, Founding Board member, 2000-2004.

Board of Directors, Public Affairs Council, 1995-2003.

Memberships:

Broward Community College Board of Trustees, 1999-2003.

Chair, Board of Trustees 1999-2000, Vice Chair, 2000-2001.

Broward Alliance, member, Board of Directors, 1997-2003.

Chair, Board of Directors, 2002-2003, Vice Chair, 2001-2002,
Secretary, 2000-2001, Treasurer, 1999-2000.

Broward Education Foundation, Board of Directors, 2002-2003.

Orange Bowl Committee, member, 2000-present.

United States Propeller Club, Washington, D.C., 2003-present.

Potomac Yacht Club, 2005-present.

U.S. Naval Institute, 2000-2006.

Smithsonian Institute, 1994-present.

Tower Club, member, 1994-present.

Broward Navy Days, Founder and member, Board of Directors,
1991-2003, member 2003-present.

Deliver the Dream, Founding Board member, 2000-2004.

Museum of Discovery & Science, member, Board of Directors,
1996-2003.

Junior Achievement of South Florida, member, Board of
Directors, 1998-2003.

Coral Ridge Country Club, 2000-present.

U.S. Senator Connie Mack's Academy Advisory Board, 1989-2000.

Public Affairs Council, member, Board of Directors, 1998-2003.

Florida Chamber of Commerce, Board of Governors, 1998-present.

Florida Tax Watch, member, Board of Directors, 2000-2003.

George W. Bush for President Finance Committee, 2000.

Jeb Bush for Governor Finance Committee, 1994, 1998, 2002.

Floridian's for School Choice, member, Board of Directors,
1999-2003.

S.W.I.M. Fort Lauderdale, member, Board of Directors, 2000-
2003.

Fort Lauderdale Chamber of Commerce, member, Board of Trustees,
1995-2000.

American Waterways Operators, Chair, Public Affairs Committee,
1992-1994.

Port Everglades Association, member, 1987-1994.

13. Have you ever been a candidate for and/or held public office
(elected, nonelected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount and whether you are
personally liable for that debt.
I have never been a candidate for public office.
14. Itemize all political contributions to any individual,
campaign, organization, political party, political action committee, or
similar entity of $500 or more for the past 10 years. Also, list all
offices you have held with, and service rendered to, a state or
national party or election committee during the same period.

Tom Gallagher for Senate Campaign, $1,000.

Tom Gallagher for Chief Financial Officer Campaign, $500.

Jeb Bush for Governor: 1994--$500; 1998--$1,000; 2002--$1,000.

George Bush for President, $2,000.

Straight Talk Express PAC, 2006--$1,000.

Bush Cheney 2004, $250.

Charlie Crist for Governor, $500.

Tom Gallagher for Governor, $500.

I was an Alternate Delegate to the 1996 Republican National
Convention representing Broward County, Florida. I served as Finance
Co-Chair of the Jeb Bush for Governor Finance Committee on his 1994,
1998 and 2002 campaigns. I served on U.S. Senator Connie Mack's Finance
Committee in 1998 and 1994. Additionally, I served on Tom Gallagher for
Insurance Commissioner Finance Committee in 2000 and Tom Gallagher for
Chief Financial Officer in Florida in 2002. In my capacity as Vice
President of Government Relations I have participated in the RNC
Eagle's and Team 100 program, the National Republican Congressional
Committee, the Democratic Congressional Campaign Committee, the
Democratic Senatorial Campaign Committee, the Republican Senatorial
Campaign Committee, the Republican Governor's Association, the Southern
Legislative Conference, the National Conference of State Legislators
and the American Legislative Exchange Council. I served as Treasurer of
the JM Family Associates Political Action Committee from 1994-2002.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.

United States Coast Guard Distinguished Civilian Award, 2000.

Paul Anderson Appreciation Day, Broward County Commission,
December 10, 2002.

Broward Navy Days Freedom Award, 1997.

Public Affairs Institute, First Fellow, 2002.

Outstanding Young Men of America, 1987.

Recognized as one of South Florida's most powerful and important
business and civic leaders as featured in the ``Power Issue'' of South
Florida CEO, April 2003.
South Florida CEO magazine's June 2002 featured Business
Executive; University of Florida College of Journalism's Communigator
Magazine Spring 2006 featured Alumni.
16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed: None.
17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or
nongovernmental capacity and specify dates and the subject matter of
each testimony: None.
18. Given the current mission, major programs, and major operation
objectives of the department/agency to which you have been nominated,
what in your background or employment experience do you believe
affirmatively qualifies you for appointment to the position for which
you have been nominated, and why do you wish to serve in that position?
I am currently serving as Commissioner of the Federal Maritime
Commission since 2003. Previously, I served for 10 years in the senior
management of JM Family Enterprises, a multi-billion dollar corporation
and one of the largest privately held corporations in America. I
believe the combination of my education and career has qualified me to
serve on the Federal Maritime Commission. My 9 years in the maritime
industry, where I worked for a diversified international maritime
transportation company with tanker, offshore supply vessel, tug and
barge and tugboat operations, combined with my involvement with major
maritime trade associations has given me the necessary experience to
serve in the capacity as Commissioner. Additionally, my extensive
leadership in the community has given me a strong belief in public
service and giving back to community and country.
19. What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
I will faithfully execute the responsibilities of a Commissioner
and the goals set forth by the Agency and the laws enacted by Congress
for the Commission. Having served in the capacity as an officer of over
two dozen private and public corporations, educational institutions,
associations and other organizations has fully prepared me to
successfully manage the agency. I was elected Chairman of the Board of
Trustees of one of America's largest community colleges with over
50,000 students and a $120 million annual budget. I also was elected
and served as Chairman of the Board of Directors of The Broward
Alliance, a public-private agency and one of the leading economic
development agencies in the state of Florida. I also served in the
executive management of JM Family Enterprises, LLC; ranked by Forbes as
the 13th largest privately held company in the United States. During
this time I directly managed a multi-million dollar annual budget for
almost 10 years. Additionally, I have had extensive experience with
developing and managing budgets and will use my professional and
leadership experience in managing the agency.
20. What do you believe to be the top three challenges facing the
department/agency and why?
Managing the agency's responses to changes taking place in global
maritime transportation; the tremendous growth of international trade
and the stress on the agency's ability to fulfill its mission under the
press of increased business and regulation; dealing with the changes
taking place between the Untied States' trading partners and their
changing regulations.

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
I have a retirement annuity earned for service at JM Family
Enterprises, LLC. This annuity will commence at age 65 in the amount of
[redacted] per month.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? None
3. Indicate any investments, obligations, liabilities, or other
relationships, which could involve potential conflicts of interest in
the position to which you have been nominated: None
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: Not that I am aware of.
5. Describe any activity during the past 10 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
Yes. In my position as Vice President of Public Affairs for JM
Family Enterprises my responsibility was to advocate on behalf of the
company at the local, state and Federal Government positions consistent
with the goals of the corporation. I participated in the advocacy of
issue related campaigns in the ballot initiative process in Florida and
the Florida legislative process. These include pro tort reform
legislation that has been introduced in the Florida legislature over
the past decade. I was a proponent of anti-tax increases in tax reform
legislation during the 2002 Florida legislative session and a 2002
ballot initiative; I was a leading advocate and leader for increase in
state funding for Take Stock in Children, a mentoring program for at
risk youths over the past decade in the Florida Legislature; I was an
advocate for increase in state funding for the Florida Community
College system; I participated in advocacy for workforce development
and economic development in the Florida legislature; and I played a
leadership role in the expansion for the Fort Lauderdale-Hollywood
International Airport.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to above items.
While I am not aware of any conflicts, if one were to arise I would
seek advice of agency counsel and if advised would recluse myself or
take appropriate actions to resolve the conflict.

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? None that I am aware of.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any violation other than a minor traffic offense? No.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: Did not answer.

D. RELATIONSHIP WITH THE COMMITTEE

1. Will you ensure that your department/agency complies with
deadlines for information set by Congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect Congressional witnesses and whistleblowers from reprisal for
their testimony? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.

RESUME OF A. PAUL ANDERSON

Professional Experience
August 2003-Present--Federal Maritime Commission--Washington, D.C.
Commissioner

Nominated by President George W. Bush on April 10, 2003 and
unanimously confirmed by the U.S. Senate on May 22, 2004 to
serve a 5-year term as Commissioner of the Federal Maritime
Commission. Responsibilities include voting on issues impacting
the trillion dollar international maritime industry; public
speaking and representing the Agency before industry groups,
associations and corporations; and working with industry and
government leaders. The Commission, an independent Federal
regulatory agency, is responsible for implementing the Ocean
Shipping Reform Act of 1998 and for setting maritime policy on
the regulation of the international trades of the United
States. Additional responsibilities include: management of
Agency operations, budget and operations; business planning and
visioning; making decisions and determinations in the
disposition of docketed cases; rulemaking; and ensuring the
efficient, equitable, and expeditious resolution of all other
matters arising under statutes administered by the Commission.

Sept. 1994-April 2003--JM Family Enterprises, Inc.--Deerfield
Beach, FL
Vice President Public Affairs

Responsibilities included advocacy, on behalf of the company
and CEO, for positions consistent with the goals of the
corporation before local, state, Federal and international
governments. Developed and managed a state and national
government relations program including a corps of state and
Federal lobbyists, while also serving as an advisor to the
Chairman and CEO on strategic policy issues impacting the
company's operations. Reported directly to the Chairman and CEO
of this $7.7 billion diversified automobile company ranked by
Forbes magazine as the 15th largest privately held corporation
in the United States. Among the company's core businesses are
financial services, automobile distribution, automobile lease
finance, insurance, chemical manufacturing, automobile retail
sales and parts distribution. A primary responsibility was the
management of a diverse range of legislative efforts in
multiple state legislatures and in Congress in support of the
company's strategic goals resulting in millions of dollars of
operational and financial efficiencies. In support of these
efforts, I managed lobbyist, law firms and consultants in
multiple states and Washington, D.C. Tasked by the CEO to
develop strategic relationships with national and Florida
corporate, government and community leaders while implementing
a national branding of the company with these leaders.
Additional duties required shared responsibility for a national
community relations program and philanthropy. Served on
business, professional and nonprofit Boards of Directors in
support of the company's goals and objectives.

Jan. 1987-Sept 1994--Hvide Marine, Inc.--Fort Lauderdale, FL
Director. Public Affairs

Responsible for all government, regulatory, political and
public affairs for this international diversified international
marine transportation company which operates tankers, offshore
supply vessels, tug and barge and tugboats in the international
and domestic maritime markets. The company now operates as
Seabulk, Inc. Position required Congressional testimony and
regulatory agencies, business and financial presentations,
coordination of business development projects. During tenure
also held positions of National Manager of Marketing and
Assistant to the President Additional responsibilities included
corporate business and strategic planning, community relations,
preparation for board meetings, crisis management team and
trained facilitator. Developed, managed and implemented a
national branding, marketing and sales campaign for this start-
up subsidiary, American Tank Testing, Inc., which successfully
concluded with the sale of the company to a fortune 200
company. Required developing and managing national sales force,
corporate and convention sales strategy, and implementation of
government procurement program.

Sept. 1986-Jan. 1987--Bob Martinez for Governor--Miami, FL
Field Director--South Florida

May 1986-Sept 1986--Tom Gallagher for Governor--Miami, FL
Campaign Travel Aide/Assistant Press Secretary

Nov. 1984-June 1986--United States Senator Paula Hawkins--Miami, FL
District Representative/Special Assistant

June 1984-Nov. 1984--United States Congressman Connie Mack--Fort
Myers, FL
Press Secretary/Assistant Campaign Manager

Dec. 1982-June 1984--United States Senator Paula Hawkins--
Washington, D.C.
Special Assistant

Education
1982--University of Florida, College of Journalism and
Communications--Gainesville, FL
Bachelor of Science, Public Relations, Minor in Marketing

1997--Harvard University's John F. Kennedy School of Government--
Cambridge, MA
Senior Managers in Government Program

The Senior Managers in Government program provides senior
executives in the Federal Government, and private sector with
the cutting-edge skills needed for their continued success.
Renowned Kennedy School faculty members help participants
enhance the core leadership skills needed to direct
organizations with governmental and public sector concerns. The
course focuses on several complex management issues faced by
senior managers including managing risk, managing change,
negotiation, leadership and policy analysis.

2001--Public Affairs Institute--Washington, D.C.

Program for Senior Public Affairs Executives

This is a three-year program for senior executives from the
public and private sector in the study of public affairs,
crisis management, issues management and Federal and state
legislative program management. Program's first distinguished
fellow.
Recognition and Awards
Public Affairs Institute, First Fellow, 2002.

Paul Anderson Appreciation Day, Broward County Commission,
December 10, 2002.

United States Coast Guard Distinguished Civilian Award, 2000.

Broward Navy Days Freedom Award, 1997.

Outstanding Young Men of America, 1987.

Recognized as one of South Florida's most important business
and civic leaders as featured in the ``Power Issue'' of South
Florida CEO, April 2003.

South Florida CEO magazine's June 2002 featured Business
Executive.

University of Florida College of Journalism's Communigator
Magazine Spring 2006 featured Alumni.
Leadership Experience

1999-2003 Broward Community College (BCC),
Chairman, Board of Trustees. This is
a gubernatorial appointment and
senate confirmed position by
Governor Jeb Bush in 1999. Upon my
appointment I was elected and served
as Chairman from 1999-2001, and Vice
Chairman from 2001-2002, of the
fifth largest community college in
the United States with five
campuses, 50,000 students and a $100
million plus annual budget. During
my tenure I was responsible for the
policy oversight of the College's
reaffirmation of accreditation, the
hiring process of a new President, a
collective bargaining agreement with
faculty union, and growth of the BCC
Foundation.
1999-2001 Broward Alliance, Inc., Chairman,
Board of Directors. This multi-
million dollar corporation is
Broward County's (a county of 1.6
million citizens) private-public
partnership for economic
development. Among the
accomplishments under my leadership
were leading a search for a new CEO,
a renewed commitment for public
funding from county government, and
the growth of private investment by
corporate partners. Among other
successes were the implementation of
a minority business development
program, expanded international
trade development program and a
partnership for a regional marketing
plan for South Florida's economic
development. I also held the
positions of Secretary, Treasurer
and Vice Chairman from 1996-1999.
1998-2003 Public Affairs Council, Board of
Directors. The Public Affairs
Council is the leading association
for public affairs professionals.
Its mission is to advance the field
of public affairs and to provide
tools and resources that enable
public affairs executives and
managers to achieve their business
and professional goals. I also
served on the Council's
accreditation committee.
2000-2002 Florida Community College Trustees
Association, Vice Chairman,
Secretary/Treasurer. During my
tenure I served as a leading
advocate of Florida Community
College Trustees and Florida's
community college system before the
state legislature and
administration. My efforts resulted
in legislation increasing funding
and matching dollars for Florida's
28 community colleges.
2000-2003 Giant Holdings, Inc., Landmark Bank,
NA, Board of Directors. Giant
Holdings is a holding company for
Landmark Bank NA, a community bank
in Broward County, Giant Bank, an
Internet component of Landmark; and
Web United, Inc., a web hosting and
technology company.
2000-2003 Take Stock in Children, Operating
Committee. At the request of
Governor Jeb Bush and the Chairman
of Take Stock. I served on the
Operating Committee of this
nationally recognized statewide
mentoring and scholarship
organization. My primary
responsibility was managing
legislative efforts which secured
state appropriations totaling over
$15 million dollars for this
organization serving Florida's at-
risk community.
2000-2004 Deliver the Dream, Founding Member,
Board of Directors. At the request
of JM Family's CEO I served as a
founding member of the Board of
Directors and on the Finance and
Board Development Committees of this
nonprofit organization serving
families in crisis.
1991-2003 Broward Navy Days, Founding Member,
Board of Directors. Co-founded this
501(c)3 naval support organization
which has grown to the 2nd largest
fleet week in the United States
celebration honoring U.S. naval
services in the United States.
1999-2003 Jeb Bush Classic, Co-Chairman.
Successfully developed this golf
tournament into a five-city,
statewide event that has raised over
$5 million for MS (muscular
sclerosis).
2000-2004 Orange Bowl Committee, Member. The
Orange Bowl Committee is a not-for-
profit, 317-member, all-volunteer
organization supporting and
producing activities and events
which enhance the image, economy,
and culture of South Florida Among
the OBC core events are the Orange
Bowl Festival, FedEx Orange Bowl and
World-Class Halftime Show, the
MetroPCS Orange Bowl Basketball
Classic, the Orange Bowl PATCH Beach
Bash presented by the City of
Hollywood, the Miller Light Orange
Bowl Tailgate Party, Boston Market
Orange Bowl Youth Football
Championships and the Orange Bowl
Cheer & Dance Championships.
1997-2003 Florida Chamber of Commerce, Board of
Governors.
2000-2003 Florida Tax Watch, Board of
Directors.
1996-2003 Museum for Discovery & Science, Board
of Directors.
2001-2003 Broward Education Foundation, Board
of Directors.
1995-2000 Fort Lauderdale Chamber of Commerce,
Board of Trustees.
1998-2003 Junior Achievement of South Florida,
Board of Directors.
1990-1994 American Waterways Operators Board of
Directors; Chairman, Public Affairs
Committee.
1988-1994 Port Everglades Association, Board of
Directors.

Government Experience

1990-1994 Broward County Consumer Affairs Board
1989-2000 United States Senator Connie Mack
Academy Advisory Board

The Chairman. I thank you very much, Mr. Anderson.
Before we proceed, I'd like to recognize and congratulate
Molly Gower. You brought your whole family, I would assume,
your potential in-laws are in your favor.
[Laughter.]
Mr. Kress. I certainly hope so. The signals are good so
far.
The Chairman. And we are most honored to have in our midst,
a war hero. Welcome, sir, we salute you.
If I may ask, Mr. Kress, you have had good experience in
the U.S. Trade and Development Agency, how can you use that
experience in the maritime world?
Mr. Kress. Thank you.
The focus of the U.S. Trade and Development Agency is on
supporting economic development projects overseas, and
supporting U.S. exports of goods, services and technologies.
And part of that is transportation projects, so I have worked
on a number of transportation projects, including in the
maritime area. I've had the opportunity to visit ports, see
equipment in action and so on, so I'm familiar with a lot of
the port development issues that are being faced in developing
countries and middle-income countries that we work with. These
issues are actually very similar to those that we're dealing
with here, in terms of congestion, security, environment and so
on.
So, specifically, the projects that I've worked on in that
area will put me in good standing for examining the issues
here. Also as a general matter, in terms of looking at trade,
understanding the needs of U.S. manufacturers, and how the
trade flows are going in and out, I think this experience gives
me a strong background for executing my responsibilities, if
confirmed, as a Commissioner.
The Chairman. I ask that question because there are some
who suggested that you were not a sailor, but you do have
experience in the maritime world.
Mr. Kress. Yes.
The Chairman. I thank you very much.
And if I may ask Mr. Anderson, you're scheduled to become
Chairman of the Commission or you have been nominated for that
position. We are now looking at the European Commission's
impending antitrust immunity guidelines for the liner shipping
industry. What impact will that have on U.S. antitrust
regulation? And what vision do you have for the FMC moving
forward on that?
Mr. Anderson. Thank you, Mr. Chairman. As you referenced,
the European community has been involved for several years with
deregulating the liner antitrust immunity in the European
community. That is scheduled to take place in October of 2008,
when that will become final. The--they are still engaged in the
EU in promulgating the final regulations that will replace
their set of antitrust immunity regulations that they are
repealing.
I think that it's very important for the United States, as
a leader in international trade in the world, to examine, after
time, the results of their very bold move to remove this long-
standing antitrust immunity, that both the EU and the United
States have had in place in our foreign-borne commerce. And I
think that it would be prudent for us to let them go through
with their process, as a grand experiment of deregulating the
industry.
It's very difficult to predict what may or may not happen
in the industry, and that's the reason I'm suggesting that we
may be very well served by examining and looking at what they
experience over the next several years in their process, before
we make any changes to our regulations.
But as you know, we enforce the laws enacted by this body
and the U.S. House, and if instructed to make changes in our
regulatory rules, we will do so.
The Chairman. I thank you very much, Mr. Anderson.
Senator Stevens?
Senator Stevens. What do each of you perceive to be your
role as members of the Commission, with regard to the safety of
our ports?
Mr. Kress. The Commission works cooperatively with Customs
and Border Protection and Naval Intelligence and the Coast
Guard and other agencies that are directly working on security
matters. The Commission is in a position to support the
integrity of the supply chain, through licensing various actors
in the supply chain, and so has an opportunity to make sure
that we understand who is working and moving goods in and out
of the United States, and can share that information with other
agencies to make sure that there is a secure and safe process.
The Commission works particularly closely with Customs and
Border Protection, there is an MOU with the Customs Service for
information sharing, and otherwise works cooperatively with the
other agencies to make sure that procedures that the ports and
the shippers are following are as secure as possible.
Senator Stevens. I thank the Chairman for bringing both up
at the same time. I think it's better to have you each answer
the same question, if you would?
Mr. Anderson. Yes, sir. Thank you. That's a very
appropriate question, and I am just going to expand on some of
the areas that Mr. Kress answered.
The Commission, while we're not sitting as a front-line
security agency, we do have a role in the security of our
intermodal supply chain in the marine transportation sector. We
license and bond all of the people that are handling cargo for
the large shippers in the world, both international and
domestic. And as such, we have area representatives that are in
our field offices around the country, that are working to
examine whether or not these companies that are filing for a
license at the Commission, if they do have the necessary
experience. We're checking out their offices to make sure they
are who they say they are.
And that particular area, I think that's an area that the
Commission can continue to expand upon, and an area that, you
know, we should be very engaged with the people that are
handling the paperwork for the cargo that's coming in and out
of our country. We do the best that we can with a very limited
staff and field offices. And, I think it's a very important
role.
We have, as Mr. Kress mentioned, a Memorandum of
Understanding. We do joint investigations with Customs, Naval
Intelligence, and the Coast Guard. And I have spoken with your
staff about some opportunities where we might be able to
increase our areas of cooperation with those agencies to do
more in the area of security.
Senator Stevens. That sounds good.
We have visited periodically ports of the United States,
such as Los Angeles, Seattle, and New York. Do you plan to
visit some of these monster ports of ours?
Mr. Anderson. I'll take first crack at that. I am a big
believer in going out and kicking the tires and actually
getting in the ports. I've been to numerous ports around the
country. I've been to LA/Long Beach, just right after my first
confirmation and being sworn in. I've been out there multiple
times. I am from the Southern California area, originally.
Those two ports make up 40 percent of all the containers coming
into and out of the country.
Additionally, as I mentioned, I worked in the largest
container port in Florida, which is Port Everglades in Fort
Lauderdale. I have visited numerous ports. It's very important
for us to see the actual workings of the Port Authorities, not
only their security side, but the transportation infrastructure
that facilitates the movements of cargo and intermodal
transportation. I've done that as well with MARAD
representatives. We visited, not only marine terminals, but
rail terminals, and also met with truckers and all of the
interested parties that move the goods in and out of our ports.
Because those are all critical in the entire supply chain of
our country.
Senator Stevens. Mr. Kress?
Mr. Kress. Yes. I would agree wholeheartedly with Mr.
Anderson there. And particularly, looking at my past experience
with the U.S. Trade and Development Agency, of going out and
actually seeing the projects and project proposals in action or
where they are likely to happen, including who the actors are,
is very different from hearing presentations in the office and
receiving e-mails and so on.
So, I would see going out and visiting those ports to be a
critical opportunity to meet with all the right people, meet
the different interested parties, see the infrastructure, and
so on, to be able to make better decisions on all the matters
that come before the Commission.
Senator Stevens. Well thank you. Having visited those
areas, I came to the conclusion that while we're developing the
kind of knowledge we need to run the ports, we really have not
done much about the transportation infrastructure that
interlocks with those ports. For instance, coming out of the
Los Angeles Port, there is just one railroad with one track.
You're right, 40 plus percent of the goods for the whole
country come through that port, but there's only one railroad
and one track. And no one's ever paid much attention to it, but
it does seem to me that someone ought to get on top of that and
try to figure out how to change that. But the technology-base
for the ports is all on the water. The mainland side of these
ports have just been neglected. I don't know if that comes
under the jurisdiction of the FMC, but I put it on the table
for you to consider. I do think the technology-base, handling
the goods once they're on shore, is as important as that,
dealing with unloading the cargo and loading the cargo onto
those islands.
But, I do thank you for your willingness to serve. We look
forward to seeing you from time to time here and we should
have, I think, a periodic report from your Commission. And I
wish you well.
Thank you, Mr. Chairman.
The Chairman. I thank you, Mr. Kress and Mr. Anderson, for
your willingness to serve. And, may I announce that the record
will be kept open for 10 more days, if you do have any changes
you'd like to make in your statements or your responses, feel
free to do so. And we will be submitting further questions, if
we may, and we look forward to your responses.
Thank you very much, and the hearing is adjourned.
[Whereupon, at 3:30 p.m., the hearing was adjourned.]

A P P E N D I X

Response to Written Question Submitted by Hon. Daniel K. Inouye to
Carl B. Kress

Question. In your testimony you mention your experience with port
related matters as an employee of the U.S. Trade and Development
Agency. What specific experience do you have with the shipping
industry?
Answer. Throughout my 6 years at the U.S. Trade and Development
Agency (USTDA), first as Chief of Staff and Senior Advisor to the
Director and later as Regional Director for the Middle East, North
Africa, and South Asia (MENASA), I have worked on a wide variety of
matters designed to address shipping industry needs, primarily in the
areas of security, safety, and supply chain efficiency. If I am
confirmed, I plan to draw upon this experience as I work with the
shipping industry to ensure a fair, secure, safe, and efficient
maritime system.
As I indicated in my testimony, USTDA's mission is to support
economic development overseas through the application of U.S. goods,
services, and technologies, thereby spurring economic growth overseas
and bolstering U.S. exports and supporting U.S. jobs. USTDA projects
are designed to create mutually beneficial partnerships, where foreign
project sponsors, such as shipping and transportation entities and
customs and port authorities, seek to work with U.S. companies and U.S.
Government technical agencies like the Maritime Administration, the
National Oceanographic and Atmospheric Administration, and the
Department of Homeland Security (DHS). All such activities have at
their core the goal of facilitating infrastructure improvements
overseas, with a particular focus on projects whose sponsors are
especially interested in U.S. solutions for project implementation.
USTDA accomplishes its mission through funding various types of
activities, such as project-specific feasibility studies and technical
assistance, and conferences and Orientation Visits (reverse trade
missions) that provide opportunities for foreign project sponsors to
gain exposure to U.S. technical expertise and technology.
As Chief of Staff and Senior Advisor to the Director from 2001-
2004, I was responsible for ensuring the execution of the Director's
policies. This involved participating in the development of all
projects and initiatives, taking part in their planning and final
approval, and working with program staff to facilitate their successful
implementation. Subsequently, as Regional Director for MENASA, I was
directly responsible for developing and implementing all activities
within that region.
Following 9/11, the Director called for a sharpened focus on
transportation sector security and safety. To ensure effectiveness in
implementing this policy, we immediately began working with the U.S.
Coast Guard, the Customs Service, and the U.S. private sector in
targeting opportunities to support requests from our trading partners
for information about U.S. security requirements, and about potential
U.S. solutions for meeting their security, safety and supply chain
efficiency needs. Because of the magnitude of U.S. trade with Asia, we
increased shipping sector activities in that region. I worked directly
with all regional teams in developing and implementing projects under
this agency priority initiative.
For example, we supported the Secure Trade in the APEC Region
(STAR) Initiative that was launched following 9/11, by sponsoring a
conference in Thailand to help APEC country companies and policymakers
develop new approaches to trade security and safety. Conference session
topics included maritime and supply chain security, which focused on
methods of expediting the movement of goods and people while adding new
security layers. Senior representatives of the International Maritime
Organization, World Customs Organization, U.S. Customs Service and
Coast Guard, the Global Alliance for Trade Efficiency, and senior
government officials and company representatives from all APEC
countries took part.
Further supporting STAR objectives, we established the Secure Trade
in the APEC Region--Bangkok/Laem Chabang Efficient and Secure Trade
Project, which supported a pilot for a secure supply chain between the
Ports of Laem Chabang, Thailand and Seattle, Washington. This pilot
showed the feasibility of establishing a secure, end-to-end supply
chain using existing technology and processes between those two ports.
We also funded technical assistance to develop STAR-related
seafarers' identification systems in the Philippines and Indonesia,
which we considered to be particularly important projects because these
two countries are the world's top suppliers of seafarers to ocean-going
carriers. Our assistance supported the countries' efforts to implement
improved national Seafarers Identity Document Systems that would comply
with International Labor Organization requirements.
As a further targeted effort to improve shipping safety and
security, we provided ISPS Code training to customs, port, and shipping
officials in APEC countries to support human capacity building and spur
appropriate infrastructure improvements necessary under their ISPS Code
obligations. ISPS Code compliance was likewise a prominent topic at
USTDA's Transportation Security Forum Conference in Cairo, Egypt in
2004, which was put on in cooperation with DHS and was supported by the
International Federation of Freight Forwarders Associations and the
World Customs Organization. The event brought together public and
private sector representatives from Africa, the Middle East, and South
Asia to review U.S. and international trade security initiatives,
identify ongoing trade and transport security projects in the
participating countries, and highlight technologies and procedures
aimed at facilitating more secure and efficient movement of goods.
We also developed and implemented two Orientation Visits that
exposed foreign shipping and port officials to U.S. equipment,
facilities, and procedures in Louisiana, Texas, and California. The
first brought a Chinese delegation to the United States to view inland
river operations in the Mississippi Delta and the Los Angeles and Long
Beach Port complexes. U.S. participants included American Commercial
Lines, LLC, Gulfship Maritime, Inc., and Transoceanic Shipping Company,
Inc. The second visit brought delegates from Brazil, Columbia, and
Ecuador to Louisiana and California to explore U.S. solutions for their
modernization and expansion plans. U.S. participants in this activity
included Gulfship Maritime, Inc. and Intermarine Inc., as well as the
Ports of Houston, Long Beach, Los Angeles, New Orleans, and South
Louisiana.
In 2004, I became the Regional Director for the MENASA Region and
took direct responsibility for developing programs that address
shipping industry interests in my countries. For example, immediately
upon taking over the region, I began planning the USTDA Transportation
Solutions for South Asia Trade conference in Mumbai, India, which
highlighted best practices for intermodal transportation, with
presentations by U.S. service and technology providers. Participants
included senior officials from the U.S. Department of Transportation as
well as shipping, port, and transportation representatives from all
South Asian countries.
I was also responsible for Orientation Visits bringing government
officials and shipping industry representatives in 2005 from Morocco,
Algeria, and Pakistan to New Jersey, Florida, Virginia, and Texas to
learn about U.S. technologies and procedures for oil spill response and
recovery. That same year we also held further ISPS Code training with
the U.S. Coast Guard, in Tunisia for representatives from Algeria,
Egypt, Jordan, Lebanon, Morocco, Oman, Tunisia, the United Arab
Emirates, and Yemen.
Recently, I worked with U.S. technical experts in developing and
providing port security technical assistance regarding ISPS Code,
Customs-Trade Partnership Against Terrorism, and Container Security
Initiative compliance for the Moroccan Tangier-Med project, which
encompasses a new deep-sea harbor and new container and cargo
terminals. The concessionaire for the first container terminal is
Maersk-Akwa, a joint venture with 90 percent ownership by the Maersk
Group.
In sum, throughout my 6 years at USTDA I have been actively
involved in a wide variety of activities designed to address shipping
industry needs, particularly with respect to increased security,
safety, and supply chain efficiency. This experience has given me a
clear understanding of the complexity of these issues and the
importance of coordinated efforts among the many stakeholders,
including carriers, shippers, customs and security officials, ports,
consumers, and exporters. Melding effectively the economic, security,
environmental, and safety needs inherent to the shipping industry is a
challenging task, and, if confirmed, I look forward to working
successfully with the shipping industry to facilitate fair, safe, and
secure maritime transportation.
______

Response to Written Questions Submitted by Hon. Barbara Boxer to
Carl B. Kress

Question 1. Traditionally the Federal Maritime Commission's mandate
has been fairly narrow--to consider only if transportation costs
increase or transportation services decrease with any water-borne and
port commerce proposal. But in the case of the Port of LA/Long Beach,
it is no longer possible for the port to continue to grow without
substantial environmental mitigation. I believe, as do many in
California, that the Commission must now take into account a broader
range of considerations when looking at port plans.
Answer. Section 6(g) of the Shipping Act requires the Commission to
evaluate agreements among marine terminal operators or ocean common
carriers to determine whether they would be likely, by a reduction in
competition, to produce an unreasonable reduction in transportation
service or an unreasonable increase in transportation cost. As you
point out, the port and shipping agreements that the Commission reviews
encompass a range of important issues, not simply their impact on costs
and service availability. I believe that the Commission's analysis of
such agreements should take these broader issues, such as an
agreement's potential impact on the environment, into account as a part
of the Commission's analysis. Accordingly, I believe the appropriate
question under section 6(g) is whether a reduction in service or
increase in costs is reasonable, considering all of the relevant
circumstances.

Question 2. Do you feel the Federal Maritime Commission should
consider new factors such as existing or potential environmental,
safety and security risks when conducting an anti-trust analysis of a
port plan to address emissions?
Answer. Yes. I believe that the Commission can and should consider
such factors in deciding whether an agreement to reduce emissions is
reasonable under section 6(g) of the Shipping Act. I believe that in
order to determine whether an agreement is substantially anti-
competitive under the Shipping Act, the Commission should take a broad
approach that considers potential impacts on the environment, safety,
and security, in addition to potential consequences for transportation
service availability and cost.

Question 3. Has the Federal Maritime Commission considered these
factors in the past?
Answer. The Commission previously evaluated an agreement by West
Coast Marine Terminal Operators to implement PierPASS, a program that
charges a fee to port users during peak hours to encourage more visits
during off-peak hours, which I understand was aimed specifically at
reducing congestion at the Ports and has been considered a success.
Accordingly, given this explicit purpose, it is my understanding that
the Commission considered the potential benefits under these factors in
its determination that the increase in transportation costs due to the
peak-hour fee was reasonable.

Question 4. Do you agree the air quality situation in at the ports
in California, particularly at the Ports of LA/Long Beach has reached a
critical level in regards to public health?
Answer. Yes. I experienced the air quality in Los Angeles first-
hand when I lived there for 3 years while attending law school, and
have read reports describing the poor air quality in the region and how
it poses a grave health risk to Southern California residents. I
believe that improving air quality in the ports, and in the region as a
whole, must be a key priority.

Question 5. It is my understanding that recently, some of the
shipping lines and the retail companies that ship through our ports
filed objections to the efforts being undertaken in the state to
develop a plan to control emissions on the basis of potential cost
increases. What actions, if any, has the FMC taken at this time on
those objections?
Answer. No formal petitions or complaints have been filed with the
Commission regarding the proposed Clean Trucks Program being considered
by the Ports of Long Beach and Los Angeles. However, the Commission has
received two letters--a joint letter from the Pacific Merchant Shipping
Association and the National Industrial Transportation League, and a
letter from the Intermodal Motor Carriers Conference--asserting that
the program would violate certain provisions of the Shipping Act. Press
reports indicate that the Commission has been closely following
developments at the ports on these matters, and I see that the
Commission held a closed meeting on November 28, 2007 to discuss the
proposed Clean Trucks Program. It is my understanding that the two
letters did not object to any plans by the State of California to
reduce emissions, such as rules being considered by the California Air
Resources Board to set emissions levels for all drayage trucks
throughout California.

Question 6. What role do you see for the FMC playing in the
development and implementation of ports plan to reduce emissions at the
Ports of LA/Long Beach?
Answer. The Ports of Los Angeles and Long Beach have an agreement
filed with the Commission that allows them to discuss ways to reduce
port-related emissions under their Clean Air Action Plan. Under the
Shipping Act, the Commission has an obligation to monitor activities
under this agreement to ensure compliance with the Act. Additionally,
because they are marine terminal operators, both ports are also
required to comply with certain provisions of the Shipping Act even if
they are acting separately. Therefore, the Commission has a role to
play in determining whether actions by these ports, and any other
marine terminal operators, are consistent with Shipping Act
requirements. If confirmed, I look forward to working with all of the
parties as they together strive to craft innovative approaches that
address Southern California's needs with respect to emissions and
congestion reduction.