- NOMINATIONS TO THE DEPARTMENT OF TRANSPORTATION

[Senate Hearing 111-646]
[From the U.S. Government Publishing Office]

S. Hrg. 111-646

NOMINATIONS TO THE
DEPARTMENT OF TRANSPORTATION

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

HEARING

before the

COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE

ONE HUNDRED ELEVENTH CONGRESS

SECOND SESSION

__________

JANUARY 26, 2010

__________

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 ELEVENTH CONGRESS

SECOND SESSION

JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas,
JOHN F. KERRY, Massachusetts Ranking
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California JOHN ENSIGN, Nevada
BILL NELSON, Florida JIM DeMINT, South Carolina
MARIA CANTWELL, Washington JOHN THUNE, South Dakota
FRANK R. LAUTENBERG, New Jersey ROGER F. WICKER, Mississippi
MARK PRYOR, Arkansas GEORGE S. LeMIEUX, Florida
CLAIRE McCASKILL, Missouri JOHNNY ISAKSON, Georgia
AMY KLOBUCHAR, Minnesota DAVID VITTER, Louisiana
TOM UDALL, New Mexico SAM BROWNBACK, Kansas
MARK WARNER, Virginia MIKE JOHANNS, Nebraska
MARK BEGICH, Alaska
Ellen L. Doneski, Staff Director
James Reid, Deputy Staff Director
Bruce H. Andrews, General Counsel
Ann Begeman, Acting Republican Staff Director
Brian M. Hendricks, Republican General Counsel
Nick Rossi, Republican Chief Counsel

C O N T E N T S

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Page
Hearing held on January 26, 2010................................. 1
Statement of Senator Lautenberg.................................. 1
Statement of Senator Boxer....................................... 4
Prepared statement........................................... 5
Statement of Senator Begich...................................... 28

Witnesses

Hon. Orrin G. Hatch, U.S. Senator From Utah...................... 1
Prepared statement........................................... 2
David T. Matsuda, Administrator-Designate, Maritime
Administration, U.S. Department of Transportation.............. 7
Prepared statement........................................... 8
Biographical information..................................... 9
Hon. Michael Peter Huerta, Deputy Administrator-Designate,
Federal Aviation Administration, U.S. Department of
Transportation................................................. 14
Prepared statement........................................... 16
Biographical information..................................... 17

Appendix

Response to written questions submitted to Hon. Michael Peter
Huerta by:
Hon. Tom Udall............................................... 33
Hon. Kay Bailey Hutchison.................................... 34
Hon. John Thune.............................................. 34
Hon. Sam Brownback........................................... 35
Response to written questions submitted to David T. Matsuda by:
Hon. Kay Bailey Hutchison.................................... 36
Hon. John Thune.............................................. 37
Hon. David Vitter............................................ 39
Hon. Mark Begich............................................. 40

NOMINATIONS TO THE
DEPARTMENT OF TRANSPORTATION

----------

TUESDAY, JANUARY 26, 2010

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

OPENING STATEMENT OF HON. FRANK R. LAUTENBERG,
U.S. SENATOR FROM NEW JERSEY

Senator Lautenberg. Excuse the tardiness. We have an
important hearing to hold, and we want to get on with it. And
so, we call the hearing to order and welcome our friend and
colleague Senator Hatch.
And, Senator Boxer, did you want to say anything?
Senator Boxer. Well, I'm here to introduce Mr. Michael
Huerta to be the Deputy Administrator of the FAA, so at that
point I would do that.
Senator Lautenberg. Thank you.
Senator Hatch, welcome.

STATEMENT OF HON. ORRIN G. HATCH,
U.S. SENATOR FROM UTAH

Senator Hatch. Well, thank you, Mr. Chairman and Senator
Boxer. I'm honored to be here with both of you.
I'm here today to introduce an honorary Utahn, Michael
Huerta, President Obama's nominee for Deputy Administrator of
the Federal Aviation Administration.
I first met Michael about 10 years ago, when he joined the
Salt Lake Olympic Committee, or Games Team, in Utah, to help
pull together the monumental logistical and operational
planning effort needed to sponsor what we considered to be the
most important Winter Olympics and Winter Games in history.
Michael brought his expertise in transportation, planning,
operations, and logistical integration to bear--it was no small
part due to his efforts that Utah's Olympic Games are known as
the first Olympics to have a fully successful transportation
operation.
In fact, one of my favorite stories about Michael which
exemplifies his commitment to public service took place in
August 2001. Michael had completed his work on the core
transportation plan for the Games, and had left the Olympic
Organizing Committee in early 2001 to take a much better paying
and high profile position in the private sector. We all hated
to lose him, but understood the opportunity and wished him
well. Then, in late summer, just 2 months before the start of
the Games, our planning team realized that we had a potentially
serious flaw in our operations plan, and there was no one in
Utah with the necessary level of experience and understanding
of the Games plan to pull together and run this operation at
Games time.
So, the Olympic team reached out to Michael, and made the
audacious request that he leave his senior management position
and rejoin the Olympic Games Team for just 7 months. After a
little soul searching, Mike agreed, because at heart he is a
public servant and he couldn't let an effort he had worked on
fail when he knew he could serve it. His company, realizing
they were losing an incredibly valuable asset in Mike, decided
that, rather than let him go, they would loan him to the
Olympic Games. And so, it ended well for everyone, particularly
the 2002 Olympic Winter Games.
At Games time, Mike led a very successful initiative called
Travel Demand Management, which I understand is transportation-
speak for programs that shift traffic to alternative times in
order to make room for the Games-related traffic. We in Utah
are quite proud of the fact that our transportation systems
were not a news story during the Olympics. It meant that
everything worked, and everything worked well.
The years Michael spent in Utah are just one example of his
many years of experience in public service and in
transportation. He has worked in just about every major mode of
transportation and at every level of government, both in the
United States and around the world. He ran a very successful
transportation technology company, and now is ready once again
to return to public service.
This unique combination of capability, knowledge,
experience, and genuine commitment to the public good and
public service is exactly what we need at this time at the FAA.
With the challenges facing that important agency, I've got to
tell you that you've got a real good one here. I urge that you
make a favorable consideration of this nomination as quickly as
you can. He's a really, really fine man, with great abilities,
who can serve at this time. And I want to commend the President
of the United States for picking him. It was a great choice,
and I'm really, really honored to be here to back up this
choice.
[The prepared statement of Senator Hatch follows:]

Prepared Statement of Hon. Orrin G. Hatch, U.S. Senator from Utah
Mr. Chairman, Madam Ranking Member and members of the Committee,
I`m here today to introduce an honorary Utahn, Michael Huerta,
President Obama's nominee for Deputy Administrator of the Federal
Aviation Administration.
I first met Michael about 10 years ago when he joined the Salt Lake
Olympic Games team in Utah to help pull together the monumental
logistical and operational planning effort needed to host the Winter
Games. Michael brought his expertise in transportation planning,
operations and logistical integration to bear and it is no small part
due to his efforts that Utah's Olympic Games are known as the first
Olympics to have a fully successful transportation operation.
In fact, one of my favorite stories about Michael, which
exemplifies his commitment to public service, took place in August of
2001. Michael had completed his work on the core transportation plan
for the Games and had left the Olympic Organizing Committee in early
2001 to take a much better paying and high profile position in the
private sector. We all hated to lose him but understood the opportunity
and wished him well. Then, in late summer, just months before the start
of the Games, our planning team realized that we had a potentially
serious flaw in our operations plan, and there was no one in Utah with
the necessary level of experience and understanding of the Games plan
to pull together and run this operation at Games time.
So, the Olympic team reached out to Michael and made the audacious
request that he leave his senior management position and rejoin the
Olympic Games team--for just seven months. After a little soul-
searching, Mike agreed--because at heart, he is a public servant and he
couldn't let an effort he had worked on fail when he knew he could save
it. His company, realizing they were losing an incredibly valuable
asset in Mike, decided that rather than let him go, they would loan him
to the Olympic Games, and so it ended well for everyone--particularly
the 2002 Olympic Winter Games.
At Games time, Mike led a very successful initiative called travel
demand management, which I understand is transportation speak for
programs that shift traffic to alternative times in order to make room
the Games related traffic. We in Utah are quite proud of the fact that
our transportation systems were not a news story during the Olympics.
It meant that everything worked, and worked well.
The years Michael spent in Utah are just one example of his many
years of experience in public service and in transportation. He has
worked in just about every major mode of transportation and at every
level of government, both in US and around the world. He ran a very
successful transportation technology company and now is ready, once
again, to return to public service.
This unique combination of capability, knowledge, experience and
genuine commitment to the public good and public service is exactly
what we need at the FAA right now. With the challenges facing that
important agency, I urge your favorable consideration of his
nomination.
Thank you for your consideration.

Senator Lautenberg. Thank you very much. It shows you what
a guilty conscience can do to you. Because I was late and I saw
our distinguished colleague here at the table, I introduced him
to make, essentially, a very broad opening statement on behalf
of Mr. Huerta. But, now--you're welcome to stay, Senator Hatch,
but I know you have a busy schedule.
Senator Hatch. Thank you, Mr. Chairman.
Senator Lautenberg. I hope so, anyway. We're glad to see
you.
And now, I want to welcome everybody to the--to this
hearing on the nomination of David Matsuda to head the Maritime
Administration, commonly known as MARAD; and Michael Huerta,
who we heard something about from Senator Hatch, to be Deputy
FAA Administrator. Very important nominations in each case, and
I think it's a good day for our country. But, for me
personally, it's a proud day, as well.
Eventually, many of the men and women who come to work with
us in the Senate move on, but our hope is that they remain
committed to public service. And today, it's a special
privilege for me to introduce a former staff member who
personifies that commitment. David Matsuda, my senior
transportation advisor for 6 years, is President Obama's
nominee to be Administrator of MARAD at the Department of
Transportation. The President and Secretary LaHood have made
excellent choices but, particularly because I am so familiar
with David Matsuda, I am especially grateful that they chose
David to fill this post.
The Maritime Administration plays a critical role in port
and vessel operations, maintaining the health of the Merchant
Marine fleet, supporting current mariners, and educating future
ones. We need someone at MARAD who understands the role of the
maritime sector in our economy and our national security, and
how all of our Nation's transportation modes fit together. And
I know that David Matsuda is the person for the job.
He has unparalleled expertise in transportation issues. If
it moves, David wants to understand how it works. David and I
have worked together on laws that fundamentally changed rail
travel in this country, strengthened our Nation's oil pollution
prevention and response programs, and improved security at our
Nation's seaports.
Time and time again, David Matsuda has proved himself
resourceful and successful. And I look forward to working with
him again to implement the new maritime laws recently signed
into law.
Now, my Maritime Administration Authorization Act will move
more of America's freight off the roads and onto the sea by
creating a new Marine Highway Grant Program. This law also
establishes a grant program to improve the capability of our
ports, and David will be a strong partner in implementing these
new programs.
I note that he's joined today by his wife, whom I also
know, having been present at their wedding--Catherine Matsuda;
his parents, retired Major Ron Matsuda and Mary Matsuda; his
in-laws, Eugene and Barbara Parsons; and his brother, Michael,
and his sister-in-law, Veronica. They're all proud of his
accomplishments, and so are we. I'm confident that he'll be an
exceptional leader for our Nation's maritime system.
Today, as you heard from Senator Hatch, we're considering
the nomination of an excellent candidate, Michael Huerta, to be
the Deputy Administrator of the Federal aviation system. Mr.
Huerta held senior positions in the Clinton Administration, at
Department of Transportation, and is currently the President of
MPH Consulting, which specializes in transportation issues, and
he was a member of President Obama's transportation transition
team. He's a graduate of the Woodrow Wilson School at Princeton
University, in my State of New Jersey.
At FAA, he'll be charged with helping keep our skies safe
and convenient for all our air travelers--this too is a
critical assignment, especially given the expected increase in
air traffic in the coming years. I welcome and congratulate
both of our nominees and their families.
It's my pleasure to welcome our colleagues, who will all
also introduce our nominees.
Senator Boxer, if you'd like to talk about Michael Huerta,
please do so.
Senator Boxer. Thanks, Senator.

STATEMENT OF HON. BARBARA BOXER,
U.S. SENATOR FROM CALIFORNIA

Senator Boxer. Thank you, Senator Lautenberg.
I would like to ask unanimous consent to place my entire
statement in the record.
Senator Lautenberg. Without objection.
[The prepared statement of Senator Boxer follows:]

Prepared Statement of Hon. Barbara Boxer, U.S. Senator from California
Mr. Chairman, I am pleased to be here today to support the
nomination of Mr. Michael Huerta to be Deputy Administrator of the
Federal Aviation Administration (FAA). I would like to congratulate
Michael and his family on his nomination.
I am proud to see the Obama Administration choose a California
native and a University of California at Riverside graduate to fill
this important position at the FAA.
Mr. Huerta has a long history of service in the transportation
sector and he brings a wealth of experience to this position at the
FAA.
He has served in a variety of leadership roles ranging from the
Executive Director at the Port of San Francisco, to coordinating
transportation for the Salt Lake City Olympics to working in industry
management.
During Mr. Huerta's time as the Chief of Staff for the Secretary of
Transportation (DOT) under the Clinton Administration, I worked with
him on several transportation initiatives that were important to
California, including the Alameda Corridor project in Southern
California and the extension of BART to the San Francisco Airport.
These projects brought jobs to California, and greatly increased
California's ability to move goods and people in our state. I am
confident he will bring that same leadership to key FAA programs.
The FAA is facing many challenges. First, we must take action to
improve aviation safety in the wake of the tragic crash of Flight 3407
near Buffalo last February.
The FAA delayed new rules to address pilot fatigue until early this
year and FAA must act now to address this issue.
The FAA must also work to implement Next Gen, which will modernize
our air traffic control system and make our skies safer and more
efficient.
Mr. Huerta's experience managing large, complex organizations lends
well to understanding the planning and technology deployment
requirements needed to modernize our air traffic control system in the
coming years.
Finally, while I am pleased that the DOT has implemented a final
rule based on the Boxer-Snowe airline passenger bill of rights
legislation to protect passengers from lengthy tarmac delays, DOT and
FAA must ensure that strong consumer protections are enforced and I am
counting on Michael to do just that.
Mr. Huerta's breadth of experience and leadership make him an
excellent choice to fill the role of Deputy Administrator at the FAA. I
look forward to working with him in his new capacity and congratulate
him again on his nomination.
Thank you, Mr. Chairman.

Senator Boxer. And I will summarize, and also apologize in
advance; when I'm done, I have a 3 o'clock urgent meeting in my
office, way on the other side. So, I am not leaving because I'm
not interested; I'm very interested. And as a matter of fact, I
want to work with Senator Lautenberg to make sure that both of
you move quickly and swiftly through the process, because
you're both greatly needed.
And I wanted to say how pleased I am to be here to
specifically introduce Mr. Michael Huerta and to join my voice
with that of Senator Hatch in supporting him.
I also was going to ask his family if they would stand. I
know his wife and 13-year-old son, Matthew, are here. Could
they stand up and be recognized? Hi. And I heard, Matthew,
you're very interested in aviation. Is that so?
Matthew Huerta. Yes, it is.
Senator Boxer. Oh, well, then dinner conversations are
going to be very interesting around your house----
[Laughter.]
Senator Boxer--once your dad is in charge of so many
issues. Thank you very much for being here.
I am very proud to see the Obama Administration choose both
of these fine people. And I have to say, Mr. Huerta, coming
from California, as he does--a California native, a graduate of
UC at Riverside--it means a lot to us in California to see a
hometown guy make good. And we know you have a long history of
service in the transportation sector. And we heard about your
role at the Olympics--and I wanted to mention, you were
Executive Director at the Port of San Francisco, which means a
lot to a lot of us who were there at the time--and you were
Chief of Staff for the Secretary of Transportation under the
Clinton Administration. I remember, at that time, we worked
together on very important initiatives for California,
including the Alameda Corridor and the extension of train
service to the airport. Those projects brought an amazing
number of jobs to our State, and they greatly increased our
ability to move goods and people in our State.
Mr. Chairman, 40 percent of the goods headed for the United
States of America come through the Port of Los Angeles. It's
huge. We really need to pay attention to these--our States
where we do so much work at the ports. And even though you're
going to FAA, it's all about intermodal--it's all about how you
connect all of this. So, I think your experience at our ports
is going to be very helpful. Your experience in ground
transportation at the Olympics is also very important. You're
an organizer, and you understand making priorities. I just want
to mention a few of mine, which I think speak for a lot of us
here.
We're concerned about pilot fatigue. We think this needs to
be addressed, and in the wake of the tragic crash of Flight
3407 near Buffalo, we have to work to implement NextGen, which
will modernize our air traffic control system and make our
skies safer and more efficient. And your experience managing
large, complex organizations lends itself well to understanding
the planning and technology deployment requirements needed to
modernize our air traffic control system.
Sometimes I really lose a little sleep worrying about
what's going on, because we've heard from controllers, there
are issues, there are problems. And then we hear from pilots,
there are issues and there are problems. So, this is a very
important job you're going to fill.
Personally--a point of personal privilege for myself and
Senator Snowe--we authored the Passenger Bill of Rights
legislation. We're very pleased that the FAA has moved forward
and essentially put one into place, but the consumer
protections need to be enforced. They're not going to be worth
anything if they're not enforced. I'm going to count on you,
and I know Senator Snowe will, to do just that.
Well, in conclusion, Mr. Chairman, Mr. Huerta's breadth of
experience and leadership make him an excellent choice to fill
the role of Deputy Administrator at the FAA. I look forward to
working with you so we can make sure that these two fine public
servants get to work as soon as they can.
Thank you very much.
Senator Lautenberg. Thank you very much, Senator Boxer.
And now we'll hear from David Matsuda first, for 5 minutes,
if you will give your testimony.

STATEMENT OF DAVID T. MATSUDA,

ADMINISTRATOR-DESIGNATE, MARITIME ADMINISTRATION,

U.S. DEPARTMENT OF TRANSPORTATION

Mr. Matsuda. Thank you.
Good afternoon, Mr. Chairman. I'm greatly honored to be
here today and to receive the President's nomination to serve
as Administrator of the U.S. Department of Transportation's
Maritime Administration.
I'm pleased to be joined by my family, who you mentioned
earlier. I'd ask them to take the opportunity to stand, right
now. Some of them came from all over the country to be here
with us, so if you don't mind.
Senator Lautenberg. If you would like to all stand, members
of the extended family----
[Laughter.]
Mr. Matsuda. Not the extended family, sir.
Senator Lautenberg. Congratulations to all of you.
Mr. Matsuda. Thank you.
Well, I want to thank you, in particular, Mr. Chairman, for
your trust and confidence in me as your chief transportation
advisor for many years, and for the opportunity to be a part of
your team serving the people of New Jersey. Through you, I've
learned much about the government, about fighting for what you
believe in, and about how to get things done in this town to
help people.
I'm proud to be back in this room today among colleagues
and friends. I have had the opportunity to put in long hours
with many of the staff in the room, and always the staff have
represented members' interests here fiercely but with great
civility. I think that's a hallmark of this committee and this
body that deserves mention.
Over the years, I've witnessed this committee play a
tremendous role in maritime leadership and oversight, and, if
confirmed, I will commit to maintaining its strong working
relationship with the agency.
Also, I pledge to you that I will work for President Obama
and Secretary LaHood to carry out the mission of the Maritime
Administration and execute the duties prescribed by our
country's laws.
With the Committee's permission, I'd like to take this
opportunity to update you about what the Maritime
Administration is doing to help the people of Haiti.
Many of us heard the news, just 2 weeks ago, about the
devastation left by the earthquake there. Since that time, the
agency has mobilized the Merchant Marine to aid in what we knew
would be essential relief-and-recovery efforts. We have
activated five Ready Reserve Force cargo ships, as requested by
the Defense Department, for Operation United Response. The four
that will be used in Haiti have all been delivered, or are
being delivered, ahead of schedule. We're also managing two
additional fast passenger transport ships for the military. All
are being crewed by U.S. civilian Merchant Mariners. And the
agency is still receiving calls from skilled Mariners all over
the country offering to help.
Commercial U.S. flagships with American workers are already
bringing large quantities of badly needed supplies, medicine,
and food to Haiti, using makeshift ports. We've advised our
fellow agencies on the many offers of support from the U.S.
maritime industry that we have solicited, including offers from
shipping companies, longshoremen, and offshore supply boat
operators.
In brief, the U.S. Merchant Marine is, again, quietly and
successfully delivering, as they have so many times in the
history of our country. ``Acta, non verba''--meaning, ``Deeds,
not words,'' as we say at the U.S. Merchant Marine Academy, in
Kings Point, New York--exemplifies this humble dedication.
But the maritime industry's breadth goes beyond just being
there when the country needs them in times of crisis or natural
disaster. It enables us to trade globally every day. Items
brought in by ship make their way to store shelves and factory
lines throughout the country, not just in the coastal States.
Some raw materials we mine, goods we produce, and crops we grow
for export leave through our seaports or travel down inland
rivers or across great lakes to distant markets.
In all, 36 states have a maritime port, whether it's a
river, lake, gulf, or ocean. In some states, a shipyard or
marine manufacturing plant can be the largest source of jobs
for an entire community or region. I've found the Maritime
Administration's mission to be critical to ensuring our
country's maritime infrastructure, vessels, shipbuilding
capacity, and workforce are adequate to support our Nation's
sealift needs, for our military as well as our economy.
Today's maritime industry is struggling with many tough
challenges: a lagging economy; environmental threats, like
climate change, invasive species, and harmful air emissions;
piracy and other security issues; a greatly expanded Panama
Canal, opening in the year 2014; and an aging work force, to
name a few. I believe my experience working within the Federal
Government, and especially working in the Senate, has given me
a broad understanding of how these challenges can be approached
successfully by working with all stakeholders in good faith and
by ensuring transparency in decisionmaking.
Since coming back to the DOT, I've had the opportunity to
again work with some highly capable Federal professionals who
show great passion for their work, and, if confirmed, it'll be
my privilege to work with these men and women, carry out the
Maritime laws and policies of our country, make sure the
Merchant Marine is there when we need it, and especially when
we need it the most.
Thank you, and I'm happy to answer any questions the
Committee has.
[The prepared statement and biographical information of Mr.
Matsuda follows:]

Prepared Statement of David T. Matsuda, Administrator-Designate,
Maritime Administration, U.S. Department of Transportation
Mr. Chairman, Ranking Member Hutchison, and members of the
Committee:
I am greatly honored to be here today before the Committee, and to
receive the President's nomination to serve as Administrator of the
Maritime Administration.
For many years I was fortunate to witness the Committee's work in
transportation and maritime issues from well behind the dais as a
staffer. So, it gives me great pride to be back in this room today
among colleagues and friends. I've had the opportunity to work with
many of your staff members, and they have represented your interests
fiercely, but always did so with great civility.
If confirmed, I pledge to you that I will work for President Obama
and Secretary LaHood to carry out the mission of the Maritime
Administration and execute the duties prescribed by the laws of our
country. Over the years I have witnessed this Committee play a
tremendous role in maritime leadership and oversight, and I will strive
to ensure that its strong working relationship with the agency
continues.
The impacts of our Nation's maritime industry are not limited to
coastal states--you don't have to have an ocean to depend on the
maritime industry. Items brought in by ship make their way to store
shelves and factory lines throughout the Nation. Some raw materials we
mine, goods we produce, and agricultural products we grow for export
leave through our seaports or travel down rivers or across great lakes
to distant markets.
In all, 36 states have a maritime port--whether it's on a river,
lake, gulf, or ocean. Merchant mariners live in just about every state
in the Union, and midshipmen nominated by you and your colleagues to
study at the U.S. Merchant Marine Academy can claim home to all but one
state. Some states have shipyards or marine manufacturers which can be
the largest sources of jobs in an entire community or region. I feel
that these basic elements of our maritime transportation system are
influenced by the many Federal programs managed by the Maritime
Administration.
I believe the agency's mission is critical to ensuring these
elements all exist and are adequate to support our Nation's sealift
needs--for our military as well as our economy.
Today's maritime industry is struggling with many tough challenges:
a lagging economy, climate change, the threats of invasive species,
piracy and other security issues, a greatly expanded Panama Canal
opening in 2014, and an aging workforce, to name a few. I feel my
experience working within the Federal Government, and especially
working in the Senate, has allowed me a broad understanding of how
these challenges can be approached successfully: by working with all
stakeholders in good faith and with transparency in decisionmaking.
Since coming back to the Department of Transportation, I've had the
opportunity to again work with some highly capable Federal
professionals, who show great passion for their work. If confirmed, it
will be my privilege to work with these men and women to execute the
relevant laws and policies of our country to help ensure that the
merchant marine is there when we need it, and especially when we need
it the most.
Thank you.
______

a. biographical information
1. Name (Include any former names or nicknames used): David T.
Matsuda.
2. Position to which nominated: Administrator, Maritime
Administration, Department of Transportation.
3. Date of Nomination: December 17, 2009.
4. Address (List current place of residence and office addresses):

Residence: Information not released to the public.

Office: 1200 New Jersey Ave, SE W22-314, Washington, DC 20590.

5. Date and Place of Birth: August 8, 1972, Soest, the Netherlands.
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: Catherine Parsons, Director of Development, Internet
Education Foundation, Washington, D.C.

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

BS Engineering, 1994, Harvey Mudd College, Claremont, CA.

JD, 1997, University of San Diego School of Law, San Diego, CA.

Other schools attended (credit coursework only):

New Mexico State University. Las Cruces, NM: June 1992 to
August 1992.

Catholic University of America, Washington, D.C.: June 1996 to
August 1996.

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.

1/1995-8/1995: Clerk, Cowley and Chidester (now defunct), 6050
El Tordo, Rancho Santa Fe, CA 92076.

6/1996-8/1996: Law Clerk, USDOT, Office of the Secretary,
General Counsel, Office of General Law, 400 7th St, SW,
Washington, DC 20590.

9/1996-12/1996: Law Clerk, City Attorney of San Diego, 1200 3rd
Ave 12th Fl, San Diego, CA 92101.

1/1997-5/1997: Judicial Extern, Chambers of Hon. Napoleon A.
Jones, Jr., U.S. District Court, Southern District of
California, 940 Front Street, San Diego, CA 92101-8900, (619)
557-2993.

1/1998-8/1998: Attorney, Law Offices of David T. Matsuda (now
defunct), 1648 State Street, San Diego, CA 92101.

9/1998-3/2003: Trial Lawyer, Office of Chief Counsel, Federal
Railroad Administration, USDOT, 1200 New Jersey Ave, SE,
Washington, DC 20590.

1/2002-1/2003: Fellow, U.S. Senate Committee on Commerce,
Science, and Transportation, 508 Dirksen Senate Office
Building, U.S. Senate, Washington, DC 20510.

3/2003-3/2009: Senior Counsel, Office of Senator Frank R.
Lautenberg, 324 Hart Senate Office Building, U.S. Senate,
Washington, DC 20510 (Transportation counsel 3/2003 to 4/2007).

3/2009-7/2009: Deputy Assistant Secretary/Acting Assistant
Secretary for Policy, Office of Policy, Office of the
Secretary, U.S. Department of Transportation, 1200 New Jersey
Ave., SE, Washington, DC 20590 7/2009 to present: Deputy
Administrator/Acting Administrator, Maritime Administration,
U.S. Department of Transportation, 1200 New Jersey Ave., SE,
Washington, DC 20590.

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: N/A.
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: N/A.
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.

Federal Bar Association Section on Transportation and
Transportation Security Law. Have served on leadership board
since 2001.

National Democratic Club: member since 10/2009.

None of the organizations listed above 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, 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.

Obama for America, Chicago, IL: Member, Transportation Policy
Committee, July 2008 to November 2008.

Lautenberg for Senate (2008, NJ): Volunteer.

John Kerry for President (2004, DC, PA): Member, Policy
Outreach Committee on Transportation, and GOTV volunteer in
Pittsburgh, PA.

GOTV volunteer for: Bob Menendez for Senate (2006, NJ), Jon
Corzine for Governor (2005, NJ), and Alex Sanders for Senate
(2002, SC).

5. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.

Mothers Against Drunk Driving (MADD) Congressional Staffer of
the Year (2005).

Federal Railroad Administrator's Silver Achievement Award--
recognized for individual and team work to develop and publish
Positive Train Control (PTC) regulation (2000).

Scholarships awarded in conjunction with undergraduate and law
school education (obtainable upon further request) (1990-1997).

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.

Speeches delivered:

Global Maritime Information Sharing Symposium, Washington, D.C.
(Sept. 16, 2009).

Quadrennial Convention of the Maritime Trades Department, AFL-
CIO, Pittsburgh, PA (Sept. 11, 2009).

The International Propeller Club of the United States 83rd
Annual Convention and Merchant Marine and Maritime Industry
Conference (Oct. 9, 2009).

2009 World Maritime Day Parallel Event, New York, NY (Oct. 16,
2009).

North Atlantic Ports Association Semi-Annual Meeting,
Washington, D.C. (Dec. 3, 2009).

17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each
testimony.

March 31, 2009, Testimony before Subcommittee on Technology and
Innovation, Committee on Science and Technology, U.S. House of
Representatives, in hearing titled ``The Role of Research in
Addressing Climate Change in Transportation Infrastructure''--
found at: http://democrats.science.house.gov/Media/file/
Commdocs/hearings/2009/Tech/31mar/Matsuda_Testimony.pdf.

(1) Development of national freight/goods movement policy--I
believe the lack of a clear national strategy can hamper the
U.S. economy and its ability to compete in a global
marketplace. This impedance will be demonstrated in greater
clarity as the widened Panama Canal opens in 2014, creating
potentially greatly altered freight flows in the continental
U.S. and affecting citizens, travelers, residents, and
businesses at all levels.

(2) Improved Management/Accounting of the U.S. Merchant Marine
Academy--I believe the lack of resources and accountability, as
well as overall neglect, has led to potential legal violations,
deteriorated facilities, as well as other problems at the
Academy. These factors appear to have contributed to problems
with recruitment, retention and graduation of a vibrant corps
of future U.S. ship officers.

(3) Revisiting Federal Policies Designed to Sustain U.S. Flag
Fleet/Military Sealift Capability--I believe Federal policies
should be constantly examined to ensure that the Federal
Government is taking adequate action to ensure a sufficient
U.S. maritime capability for national defense and other needs.
Economic pressures may have an adverse impact on U.S. flag
carriers, which the country relies on heavily for national
defense sealift capability.
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: N/A.
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: N/A.
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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Transportation's
ethics official to identify potential conflicts of interest. Any
potential conflicts of interest will be resolved in accordance with the
terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Transportation's
ethics official to identify potential conflicts of interest. Any
potential conflicts of interest will be resolved in accordance with the
terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
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 apart from activities in conjunction with duties as part of
working for a Senator and a Senate Committee.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Transportation's
ethics official to identify potential conflicts of interest. Any
potential conflicts of interest will be resolved in accordance with the
terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
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.
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--other than successful
appeal of a minor traffic offense.
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.
N/A.
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 whistle blowers 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 david t. matsuda
--Transportation Leader, Policy Expert

--Broad Management, Work Experience in All Three Branches of
Government

--Legal, Technical, Legislative, Communications, Political Skills
Executive Branch, Legal/Managerial Experience

United States Department of Transportation--Maritime
Administration, Washington, D.C.--Deputy Administrator/Acting
Administrator. Serve as Chief Executive Officer for $1 billion
agency with more than 700 employees and mandates to ensure an
adequate U.S. merchant marine, maintain the National Defense
Reserve Fleet of roughly 200 large cargo vessels. and operate
the U.S. Merchant Marine Academy (USMMA) to educate future
generations of U.S. maritime officers. Worked to develop
national freight movement policy, settle 3-year legal conflict
over environmental management of ship disposal program, and
instill new governance, oversight, and operational controls at
the USMMA. July 2009 to Present.

Office of Policy, Office of the Secretary, Washington, D.C.--
Deputy Assistant Secretary/Acting Assistant Secretary. Served
as Chief Policy Advisor, and for over a month, served as third-
ranking official in 55,000-member Federal Department. Played
key roles in launching two new multi-billion dollar grant
programs: TIGER and High-Speed Rail. Advised Secretary of
Transportation and other top Obama Administration officials on
transportation policies, including high-speed rail development,
maritime matters, surface transportation reauthorization. March
2009 to July 2009.

Federal Railroad Administration, Office of Chief Counsel,
Washington, DC. .--Trial Lawyer. Counseled agency team that
worked with labor and industry to develop safety standards for
Positive Train Control (PTC) systems and locomotive
crashworthiness. Served as lead counsel on landmark agency
proposed PTC regulation. Regularly negotiated multimillion
dollar settlements with major railroads and shippers concerning
civil penalties assessed for violations of Federal railroad
safety and hazardous materials regulations and laws. September
1998 to March 2003.

Office of the Secretary, Office of General Counsel, Washington,
D.C.--Law Clerk. Assisted senior attorneys on cases involving
airline bankruptcy, commercial landlord-tenant dispute
involving USDOT headquarters, and patent law claims. Drafted
legal opinions for Secretary on Board of Correction for
Military Records (U.S. Coast Guard) cases. Summer 1996.

Law Offices of David T. Matsuda, Esq., San Diego, CA--Solo
Practitioner. Operated a general civil litigation practice,
serving clients with interests in immigration law, family law,
insurance claims, employment law, personal injury, and probate
law. February 1998 to September 1998.
Policy and Legislative Experience
Office of U.S. Senator Frank R. Lautenberg (D-NJ) Washington,
D.C.--Senior Counsel. Served as primary advisor on all
transportation and related security matters for active Senator
(major accomplishments listed below). Helped supervise and
manage staff of 25, and coordinate assignments and initiatives
amongst committee staff. communications staff, and constituent
caseworkers. Prepared and staffed Senator for all markups
conducted by four Committees (Appropriations; Budget; Commerce,
Science, and Transportation; and Environment and Public Works).
May 2007 to March 2009. (Served as Transportation Counsel March
2003 to April 2007).

Obama for America, Chicago, IL--Member. Transportation Policy
Committee. Collaborated with other experts to develop policy
advisory memos on transportation issues for Barack Obama
Presidential campaign staff. Served on subcommittees for
passenger rail and transit, and contributed on documents
involving Amtrak/high-speed rail, Senator McCain's
transportation record and potential campaign events. July 2008
to November 2008.

U.S. Senate Committee on Commerce, Science, and Transportation,
Democratic Staff, Washington, D.C.--Congressional Fellow.
Worked with committee professional staffer Deborah Hersman to
develop and carry out surface transportation policy/legislative
agenda for former Committee Chairman Fritz Hollings and former
Subcommittee Chairman John Breaux. Worked to enact bills on
pipeline safety and interstate limousine transportation, and
worked to pass Amtrak bill through Committee over strong
opposition of Ranking Member John McCain. January 2002 to
January 2003.
Additional Political/Campaign Experience
Lautenberg for Senate (2008, NJ): volunteer

John Kerry for President (2004, DC, PA): member, Policy
Outreach Committee on Transportation, and GOTV volunteer in
Pittsburgh, PA.

GOTV volunteer for: Bob Menendez for Senate (2006, NJ), Jon
Corzine for Governor (2005. NJ), and Alex Sanders for Senate
(2002, SC).
Education
University of San Diego School of Law, San Diego, CA
Juris Doctor conferred May 1997. Served as judicial extern for
Federal District Court Judge Napoleon Jones, Southern District.
CA, spring 1997. Argued motions in Superior Court as law clerk
with City Attorney of San Diego, Police Legal Advisors Unit,
fall 1996. Admitted to California State Bar December 1997.

Harvey Mudd College, Claremont, CA
Bachelor of Science--Engineering conferred May 1994. Earned
Dean's List honors in three semesters at school ranked by U.S.
News and World Report as nation's top undergraduate engineering
institution.
Honors
Federal Bar Association Section on Transportation and
Transportation Security Law. Serve on leadership board since
2001--Co-produced several successful live educational programs
on TEA-21 Reauthorization, Trucking Hours of Service laws, and
Aviation Carbon Emissions Regulation.

Federal Railroad Administrator's Silver Achievement Award--
recognized for individual and team work to develop and publish
Positive Train Control (PTC) regulation.

Mothers Against Drunk Driving (MADD) Congressional Staffer of
the Year, 2005.

Senator Lautenberg. Thanks very much.
Mr. Huerta, you've had some laudatory comments, and we look
forward to hearing from you. And I'd ask you to please keep it
to 5 minutes, if you can.
Thank you.

STATEMENT OF HON. MICHAEL PETER HUERTA,

DEPUTY ADMINISTRATOR-DESIGNATE, FEDERAL AVIATION
ADMINISTRATION, U.S. DEPARTMENT OF TRANSPORTATION

Mr. Huerta. Thank you, Senator Lautenberg. Thank you very
much for the opportunity to appear before you today. And I'd
also like to thank my home State Senator, Senator Boxer, and my
adopted home State Senator, Senator Hatch, for their kind words
today.
I'm honored that President Obama has nominated me for the
position of Deputy Administrator of the Federal Aviation
Administration. If confirmed, I look forward to the opportunity
to work with Secretary LaHood, Administrator Babbitt, the
Administration, and of course, you in Congress, to serve our
country in this capacity.
You also met the members of my family who are present
today. First, my wife, Ann, who is my best friend and life
partner. On more than one occasion, she has encouraged and
supported my desire to follow my heart and my passion to try
something new and challenging. She shares my belief that public
service is truly a noble calling, and I would like to thank her
for all that she has done, not only for me, but for countless
others.
You also met my son, Matthew, who has inherited his
father's interest in transportation and aviation, and was once
observed, at age 6, to be schooling a couple of off-duty pilots
on the fine distinctions between various aircraft types.
I'd also like to mention my parents, who would have loved
to have been here today. My mother passed away in May of last
year, and I lost my father 9 years earlier. I know they're
watching from a better place, but I just wanted to tell them,
``Thanks for everything.''
The Federal Aviation Administration has a huge
responsibility, and it faces significant challenges. As you
well know, the FAA's mission is to provide the safest, most
efficient aerospace system in the world. It carries out its
responsibilities both as a regulator and as an operator.
Crucial to the success of the FAA is its ability to work in
partnership with its diverse stakeholders, including the
private-sector air carriers and the general aviation community.
The FAA also relies on sophisticated technology. Its
systems must meet exceptionally high standards of safety,
security, and reliability. And, of course, the agency is a
large and complex organization. It has an ambitious agenda for
transitioning to a next-generation air traffic control system
while continuing to operate, on a daily basis, the largest air
traffic system in the world.
In my career I've been privileged to have had wonderful
professional opportunities, both in the public and private
sectors. I held senior policy positions at the USDOT under
President Clinton, which gave me valuable insight into how
Federal agencies work, and, in particular, the important role
played by the FAA.
More recently, I led a large transportation technology
services company. I had responsibility for the operations of a
large global organization, managing a diverse and technical
work force, and ensuring that we met our financial targets. Our
customers were, for the most part, State and local government
agencies, and we provided critical systems that were central to
them in being able to execute their missions. I came to develop
a great appreciation for the benefits to be gained by
partnerships between different interests in government and the
private sector.
The years I spent with the Salt Lake Olympic Committee
taught me about how an immovable deadline can be an extremely
powerful force in motivating and focusing a team toward a
common objective. We had to be focused, but flexible and ready
to adapt to the unexpected.
My skills and experience will be helpful as I look at what
is ahead at the FAA. I am excited about the prospect, if
confirmed, of playing a major role in the FAA's deployment of
NextGen. NextGen is, in fact, a system of systems, which must
all work together in a coordinated fashion to improve the
safety and efficiency of our Nation's aviation system. Its
successful deployment has been identified both by Secretary
LaHood and Administrator Babbitt as a critical objective for
their tenure, and I'm committed to do everything I can to help
ensure that objective is met.
I'm also aware that the series of short-term extensions in
FAA authorizations have created a degree of uncertainty within
the aviation community at large. It is important that FAA
reauthorization gets done. There are important safety programs
that need to be reauthorized, and, if confirmed, I look forward
to working with Congress and the aviation stakeholders
throughout the legislative process.
I hope that my background and experience will assist the
FAA in meeting the challenges it faces in the coming years. I'm
honored to have been nominated by President Obama, and I look
forward to working in partnership with you in ensuring that our
Nation's aviation system leads the world in safety, efficiency,
and innovation.
Thank you for the opportunity to be here today. I'm happy
to respond to any questions that you might have.
[The prepared statement and biographical information of Mr.
Huerta follows:]

Prepared Statement of Hon. Michael Peter Huerta,
Deputy Administrator-Designate, Federal Aviation Administration,
U.S. Department of Transportation
Chairman Rockefeller, Ranking Member Hutchison, and members of the
Committee, thank you for the opportunity to appear before you today. I
am honored that President Obama has nominated me for the position of
Deputy Administrator of the Federal Aviation Administration. If
confirmed, I look forward to the opportunity to work with Secretary
LaHood, Administrator Babbitt, the Administration and of course you in
Congress to serve our country in this capacity.
I would also like to introduce the members of my family who are
present today: First, my wife Ann Sowder, who is my best friend and
life partner. On more than one occasion she has encouraged and
supported my desire to follow my heart and passion to try something new
and challenging. She shares my belief that public service is truly a
noble calling and I would like to thank her for all that she has done,
not only for me but for countless others. I would also like to
introduce our son Matthew. He has inherited his father's interest in
transportation and aviation and was once observed--at age six--
schooling a couple of off-duty pilots on the fine distinctions between
various aircraft types.
The Federal Aviation Administration has a huge responsibility and
faces significant challenges.
As you well know, the FAA's mission is to provide the safest, most
efficient aerospace system in the world. It carries out its
responsibilities both as a regulator and as an operator.
Crucial to the success of the FAA is its ability to work in
partnership with its diverse stakeholders including the private sector
air carriers and the general aviation community.
The FAA also relies on sophisticated technology. Its systems must
meet exceptionally high standards of safety, security and reliability.
And, of course, the agency is a large and complex organization and
it has an ambitious agenda for transitioning to a next generation air
traffic control system, while continuing to operate on a daily basis
the largest air traffic system in the world.
In my career, I have been privileged to have had wonderful
professional opportunities both in the public and private sector. I
held senior policy positions at the U.S. DOT under President Clinton,
which gave me valuable insight into how Federal agencies work and, in
particular, the important role played by the FAA.
More recently, I led a large transportation technology services
company. I had responsibility for the operations of a large, global
organization, managing a diverse and technical workforce and ensuring
that we met our financial targets. Our customers were for the most part
state and local government agencies and we provided critical systems
that were central to them successfully executing their missions. I came
to develop a great appreciation for the benefits to be gained by
partnerships between different interests in government and the private
sector.
The years I spent with the Salt Lake Olympic Committee taught me
about how an immovable deadline can be extremely powerful in motivating
and focusing a team toward a common objective. We had to be focused but
flexible, and ready to adapt to the unexpected.
My skills and experience will be helpful as I look at what might be
ahead at the FAA.
I am excited about the prospect, if confirmed, of playing a major
role in the FAA's deployment of NextGen, the new air traffic control
system. NextGen is in fact a system of systems, which must all work
together in a coordinated and fashion to improve the safety and
efficiency of our Nation's aviation system. Its successful deployment
has been identified both by Secretary LaHood and Administrator Babbitt
as a critical objective for their tenure. I am committed to do
everything I can to help ensure that objective is met.
I am also aware the series of short-term extensions in FAA
authorizations have created a degree of uncertainty within the FAA and
the aviation community at large.
It is important that FAA Reauthorization gets done. There are
important safety programs that need to be reauthorized. If confirmed I
look forward to working with Congress and aviation stakeholders
throughout the legislative process.
I hope that my background and experience will assist the FAA in
meeting the challenges it faces in the coming years. I am honored to
have been nominated by President Obama. I look forward to working in
partnership with you in ensuring that our Nation's aviation system
leads the world in safety, efficiency and innovation.
Thank you for the opportunity to be here today. I am happy to
respond to any questions that you might have.
______

a. biographical information
1. Name (include and former names or nicknames used):

Michael Peter Huerta

Mike Huerta.

2. Position to which nominated: Deputy Administrator, Federal
Aviation Administration, United States Department of Transportation.
3. Date of nomination: December 8, 2009.
4. Address (List current place of residence and office addresses):

Residence and Office: 5505 Utah Avenue, NW, Washington, DC
20015.

5. Date and place of birth: November 18, 1956; Riverside,
California.
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: Ann L. Sowder, Financial Planner, Sagemark Consulting
(A Division of Lincoln Financial Advisors), 8219 Leesburg Pike,
Suite 200, Vienna, VA 22182; child: Matthew Sowder Huerta, age
13.

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

Woodrow Wilson School of Public and International Affairs.

Princeton University, MPA, International Relations, 1980.

University of California at Riverside, BA, Political Science,
1978.

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

April 2009 to present, President, MPH Consulting, LLC.

April 2008 to March 2009, Executive Vice President and Group
President, Transportation Solutions, Affiliated Computer
Services, Inc.

June 2005 to April 2008, Senior Vice President and Managing
Director, Transportation Solutions, Affiliated Computer
Systems, Inc.

March 2002 to June 2005, Senior Vice President and Managing
Director, Transportation Systems and Services, Affiliated
Computer Services, Inc.

April 2001 to March 2002, Vice President, Marketing and
Business Development, Lockheed Martin IMS, sold in August 2001
to Affiliated Computer Services, Inc.

September 2001 to March 2002, Managing Director, Transportation
Communications, Salt Lake Organizing Committee for the Olympic
Winter Games of 2002 (Loaned Executive from Affiliated Computer
Services, Inc.).

October 1999 to April 2001, Director, Federal Government
Relations, Salt Lake Organizing Committee for the Olympic
Winter Games of 2002.

September 1998 to April 2001, Principal, Cambridge Systematics,
Inc.

June 1998 to September 1998, Independent Consultant.

January 1997 to June 1998, Chief of Staff, Office of the
Secretary, U.S. Department of Transportation.

April 1993 to January 1997, Associate Deputy Secretary of
Transportation, Director, Office of lntermodalism, U.S.
Department of Transportation (Consultant until May 1993 when
confirmed by the Senate).

January 1989 to April 1993, Executive Director, Port of San
Francisco.

March 1986 to January 1989, Commissioner, New York City
Department of Ports, International Trade and Commerce (The
agency name was changed twice during my tenure and was also
known as New York City Department of Ports and Trade and New
York City Department of Ports and Terminals).

July 1980 to March 1986, Consultant, Supervising Consultant,
Manager, Coopers and Lybrand Management Consulting Services.

June 1979 to September 1979, Federal Summer Intern, U.S.
Mission to N.A.T.O., U.S. Department of Defense.

Chair, Oversight Committee, National Cooperative Freight
Research Program, Transportation Research Board.

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.

President, MPH consulting, LLC.

Member, Advisory Board, Kapsch TrafficCom Holding Corporation.

Consultant, Securing America's Future Energy.

Chairman, Board of Directors, Intelligent Transportation
Society of America.

Elder, Chevy Chase Presbyterian Church.

Deacon, Chevy Chase Presbyterian Church.

Chair, Oversight Committee, National Cooperative Fright
Research Program, Transportation Research Board.

Consultant, Mark IV IVHS.

Consultant, Chicago 2016.

Member, Board of Advisors, College of Engineering, Center for
Environmental Research and Technology, University of
California, Riverside.

Executive Vice President, Affiliated Computer Services, Inc.

12. Please list each membership you have had during the past 10
years or currently hold in any civic, social, charitable, educational,
political, professional, fraternal, benevolent or religious
organization, private club, or other membership 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, The City Club of Washington.

Member, Chevy Chase Presbyterian Church.

Cubmaster, Cub Scout Pack 52 Member, Train Collectors
Association.

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.

January 1997 to June 1998, Chief of Staff, Office of the
Secretary, U.S. Department of Transportation.

April 1993 to January 1997, Associate Deputy Secretary of
Transportation, Director, Office of Intermodalism, U.S.
Department of Transportation (Consultant until May 1993 when
confirmed by the Senate).

I have no outstanding campaign debts.

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.
Contributions:
Obama for America 9/30/2008 $2,300
Josh Zeitz for Congress 9/23/2008 $2,300
Linda Stender for Congress 6/20/2008 $2,300
Friends of Mark Warner 4/4/2008 $500
Friends of Jim Oberstar 3/21/2008 $500
Josh Zeitz for Congress 11/11/2007 $2,300
Hillary Clinton for President 10/12/2007 $2,300
Linda Stender for Congress 9/28/2007 $2,300
Mitt Romney for President 4/2/2007 $2,300
Linda Stender for Congress 6/29/2006 $500
Menendez for Senate 4/10/2006 $500
Menendez for Congress 4/7/2005 $500
Democratic National Committee 4/5/2006 $2,500
National Voter Coalition 10/10/2005 $1,000
Democratic National Committee 10/25/2004 $2,000
Ameripac: Fund for a Greater America 6/25/2004 $1,000
Mitt Romney for Governor (MA) 4/22/2004 $500
Mitt Romney for Governor (MA) 11/2/2003 $500
Lipinski for Congress Committee 5/13/2003 $500
Mitt Romney for Governor (MA) 10/24/2002 $500
Victory 2002 9/21/2002 $1,000
Steve Westly for Controller (CA) 6/21/2002 $1,000
Torricelli for U.S. Senate 5/9/2002 $1,000
Villaraigosa for LA Mayor 5/13/2001 $500
Democratic National Committee 8/16/2000 $1,000
I have not held any offices with, nor rendered services to, a state
or national political party or election committee during the last 10
years.

15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements: None.
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.

16th ITS World Congress, Stockholm, Sweden, September 21, 2009.

International Bridge, Tunnel and Turnpike Association, Board of
Directors, San Francisco, CA, April 16, 2009.

17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental on non-
governmental capacity and specify the date and subject matter of each
testimony.

September 9, 2002
Testimony on Behalf of the Coalition for America's Gateways and
Trade Corridors before the Subcommittee on Surface
Transportation and Merchant Marine, Committee on Commerce,
Science and Transportation, U.S. Senate, and the Subcommittee
on Transportation, Infrastructure and Nuclear Safety, Committee
on Environment and Public Works, U.S. Senate, on Freight
Transportation and Intermodal Connections.

March 13, 1997
Testimony as Associate Deputy Secretary of Transportation
before the Subcommittee on Transportation and Infrastructure,
Committee on Environment and Public Works, U.S. Senate, on
reauthorization of the surface transportation program.

February 24, 1997
Testimony as Associate Deputy Secretary of Transportation
before the Subcommittee on Government Management, Information
and Technology, Committee on Government Reform and Oversight,
U.S. House of Representatives, on the Department of
Transportation's ``Year 2000'' activities.

June 19, 1995
Testimony as Associate Deputy Secretary of Transportation
before the Subcommittee on Government Management, Information
and Technology, Committee on Government Reform and Oversight,
U.S. House of Representatives, at a hearing in Chicago, IL on
streamlining Federal field office structures.

May 17, 1993
Testimony as nominee to be Associate Deputy Secretary of
Transportation before the Committee on Commerce, Science and
Transportation, U.S. Senate, at a hearing to consider
nominations.

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?
The FAA's mission is to provide the safest, most efficient
aerospace system in the world. It does that as a regulator and as an
operator. It works in partnership with the private sector. It relies on
sophisticated technology. The agency is a large and complex
organization and it has an ambitious agenda for transitioning to a next
generation air traffic control system, while continuing to operate on a
daily basis the largest air traffic system in the world.
In my career, I have worked both in government and the private
sector. I held senior policy positions at the U.S. DOT, which gave me
valuable insight into how Federal agencies work and, in particular, the
important role played by the FAA. More recently, I led a large
transportation technology services organization. In that capacity, I
had responsibility for the operations of a large, global organization,
managing a diverse and technical workforce and, of course, ensuring
that the organization met its financial targets. Our customers were for
the most part state and local government agencies and we provided
critical systems that were central to them successfully executing their
missions.
I am excited about the prospect, if confirmed, of playing a major
role in the FAA's deployment of NextGen, the new air traffic control
system. NextGen is in fact a system of systems, which must all work
together in a coordinated and fashion to improve the safety and
efficiency of our Nation's aviation system. Its successful deployment
has been identified both by the Secretary of Transportation and the FAA
Administrator as a critical objective for their tenure.
I hope that my background and experience will assist the FAA in
carrying out its mission in the coming years.
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 Deputy Administrator, I would have an important operational role
at the department. Effective management of a large organization means
that the leaders of that organization need to ensure that reporting
systems are in place to provide them the visibility they need into what
is going on in the organization. At the same time, they need to ensure
that appropriate controls are in place.
I recently served as an officer of a Fortune 500 corporation and
have a good understanding of the dynamics of large organizations. It is
important to be able to delegate and empower line managers but at the
same time, to recognize that ultimate responsibility rests at the top.
I have found that managing to specific and quantifiable targets is an
effective means of building
accountability, but also innovation. In addition, it is important
to spend time ``walking around'' in the organization. You often gain
important insights about what is going on in talking to line managers
and employees informally.
If confirmed, I look forward to working closely with the FAA's
employees and stakeholders, and particularly Congress in meeting the
agency's objectives in the coming years.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
If confirmed, I intend to build on my extensive experience to meet
the Agency's current and future challenges. These challenges are not
small. Our first and highest priority to ensure that the world's safest
skies become even safer, and that we continue to be recognized as the
world leader of aviation safety.
Second, we need to move quickly and efficiently to implement our
next generation of air traffic modernization programs to maximize our
aviation system's efficiency. These next few years will be a critical
time as the FAA and its partners in Congress, industry and labor take
important steps toward a new future for our air traffic control
systems.
Third, we can move our aircraft more quickly, and we can move them
more efficiently with less carbon impact and smaller footprints and
less noise with our new technology. But we need to move aggressively
with implementation jointly by all of our stakeholders.
Finally, within the FAA, we need to regain internal labor
stability, mutual trust, and build on the can-do spirit of the entire
FAA work force, and we need to ensure the FAA's accountability and
credibility in the delivery of its goals, its budgetary compliance, and
its safety standards.
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.
While employed by Affiliated Computer Systems, Inc., (ACS) I
participated in a deferred compensation plan and, at the time I
enrolled, I elected to receive deferred compensation in five annual
installments following my departure from ACS (March 2009). I will
receive four remaining annual payments with the final payment expected
in April 2013.
While at ACS, I also participated in the company's 401k plan. Upon
my departure I had the option to keep my account with the ACS plan and
elected to do so.
I currently am covered by health insurance through COBRA under the
ACS executive benefit plan.
Finally, I hold ACS stock options, which I intend to hold as market
conditions warrant.
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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Transportation's
ethics official to identify potential conflicts of interest. Any
potential conflicts of interest will be resolved in accordance with the
terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Transportation's
ethics official to identify potential conflicts of interest. Any
potential conflicts of interest will be resolved in accordance with the
terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
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.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Transportation's
ethics official to identify potential conflicts of interest. Any
potential conflicts of interest will be resolved in accordance with the
terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
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.
From mid-1998 until April 2001, I was engaged by the Salt Lake
Organizing Committee for the Olympic Winter Games of 2002 to assist in
securing funding for transportation improvements in support of the
Olympic Winter games held in Utah in February 2002. During the period,
my company and I were registered as lobbyists.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the Department of Transportation's
ethics official to identify potential conflicts of interest. Any
potential conflicts of interest will be resolved in accordance with the
terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
c. legal matters
1. Have you ever been disciplined or cited for 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.
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 and officer
ever been involved as a party in an administrative agency proceeding or
civil litigation. If so, please explain.
I am aware of several suits that were filed against my previous
employers or that named me in an official capacity. None of these
involved any allegation related to my own conduct.
In my official capacity as Commissioner of the New York City
Department of Ports and Trade, I was named in two suits against the
city in the late 1980s involving nonpayment of rent at port facilities.
In had no involvement in the litigation of these cases. The NYC
Department of Ports and Trade may have been a party to other legal
actions, but I had no involvement in any such cases.
In 1994 or 1995, I was deposed in a sexual harassment case that an
employee had brought against the City of San Francisco. I had been the
Executive Director of the Port of San Francisco until April 2003, and I
testified that I had met the employee only once and had no knowledge of
the complaint. The Port of San Francisco may have been a party to other
legal actions, but I had no involvement in any such cases.
During the time when I was an officer of Affiliated Computer
Services, Inc., a Fortune 500, publicly traded company with extensive
domestic and international operations, the company may have been a
party to administrative proceedings and litigation; however I had no
involvement in any such cases.
4. Have you ever been convicted (including please 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.
N/A.
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 whistle blowers 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 Congress on such occasions as you may be
reasonably requested to do so? Yes.
______

resume of michael p. huerta
Professional Experience
President, MPH Consulting, LLC, Washington, D.C.; April 2009 to
present--Consultant on transportation policy, technology and financing.
Clients include international technology companies and not-for-profit
organizations.

Executive Vice President and Group President, Transportation
Solutions, Affiliated Computer Services, Inc., Washington, D.C.; April
2008 to March 2009.

Senior Vice President and Managing Director, Transportation
Solutions, ACS Government Solutions, Washington, D.C.; March 2002 to
April 2008.
Chief executive of ACS' transportation technology services line of
business. ACS is a premier provider of diversified business process
outsourcing and information technology services and solutions to
government and commercial clients worldwide. The company provides a
wide variety of revenue collection, regulatory compliance and
technology services to the transportation industry throughout the
world. Products and services include:

System integration and customer service center operations
for electronic toll collection systems including E-ZPass in the
northeastern United States and FasTrak in California.

Fare collection and parking revenue control and management
systems to public transit authorities, airports, and cities.

The nationwide PrePass electronic commercial vehicle pre-
clearance program.

A full suite of photo enforcement solutions designed to
promote road and highway safety.

System integration and design of PierPASS, a congestion fee
collection program used at the Ports of Los Angeles and Long
Beach, California.

Vice President, Marketing and Business Development, Lockheed Martin
IMS, Transportation Systems and Services, Washington, D.C.; April 2001
to March 2002--Responsible for expanding IMS' leadership position in
intelligent transportation marketplaces such as electronic toll
collection, commercial vehicle operations, and electronic payment
systems.

Consultant, Director, and Managing Director, Salt Lake Organizing
Committee for the Olympic Winter Games of 2002, Washington, D.C. and
Salt Lake City, Utah; July 1998 to April 2002--Served in various
positions as an independent consultant and an employee of the
organization. Responsible for (a) designing and running, in cooperation
with the Utah Department of Transportation, the highly successful
Travel Demand Management (TDM) program used during the XIX Olympic
Winter Games held in Utah during February 2002, and (b) securing
funding for a $250 million program of temporary and permanent
transportation projects to support the transportation requirements of
the Games.

Principal, Cambridge Systematics, Inc., Washington, D.C.; September
1998 to April 2001--Principal of an employee-owned, nationally known,
transportation consulting firm. Responsibilities included new business
development for freight and intermodal transportation. Services
provided included freight transportation planning, transportation
planning for special events, project financing, and strategic planning.

Chief of Staff, Office of the Secretary, United States Department
of Transportation, Washington, D.C.; January 1997 to June 1998--
Responsibilities included serving as chief strategist and policy
advisor to the Secretary of Transportation and day-to-day manager of
the Office of the Secretary. Involved oversight of high-profile
projects, major initiatives, and Federal Government financial
assistance.

Associate Deputy Secretary of Transportation and Director, Office
of Intermodalism, United States Department of Transportation,
Washington, D.C.; May 1993 to January 1997--Responsibilities included
coordinating Federal policy on intermodal transportation and initiating
policies to promote efficient intermodal transportation in the United
States. Selected accomplishments:

$400 million Federal loan as part of financing package for
$1.9 billion Alameda Corridor port access project in Southern
California. The Federal loan was an innovative, direct loan
which completed the financing package and enabled this project
to move forward.

Airport access projects in San Francisco and New York which
involved blending airport, transit and highway revenues in new
ways to provide mass transit links to these airports.

Executive Director, Port of San Francisco; January 1989 to April
1993--Chief executive of the port, a self-supporting public agency that
develops and administers maritime facilities, commercial development,
and fishing facilities on San Francisco's waterfront. Completed a port
strategic plan, which led to substantially increased container shipping
volume. Initiated planning and construction for modernizing and
expanding the port's shipping terminals and fish handling facilities.
Completed an award-winning public access pier in downtown San
Francisco.

Commissioner, New York City Department of Ports, International
Trade and Commerce; March 1986 to January 1989--Chief executive of the
city department responsible for developing and administering marine,
air, rail and truck facilities throughout the city; promoting
international trade and investment; operating and regulating the city's
public markets.

Management Consultant, Coopers & Lybrand, Washington, D.C.; July
1980 to March 1986--Consultant serving a variety of public and private
sector clients in economic studies, feasibility analysis and
international trade services.
Education
MPA 1980, Woodrow Wilson School of Public and International Affairs,
Princeton University BA 1978, University of California, Riverside.
Professional Affiliations
Chairman of the Board of Directors, Intelligent Transportation Society
of America.

Senator Lautenberg. I thank each of you for your testimony.
And I want to make note of the fact that the sparseness of
attendance doesn't indicate any lack of interest. Interpret it
to be confidence in the selection of each of you by the
President, by the Secretary, for your competence and your
experience. So, we feel very good about that, and I look
forward to having the Committee move on this as quickly--on
your nominations as quickly as we can.
A few questions, first, that I'd like to discuss--first of
all, for Mr. Matsuda, the completion of the Panama Canal in
2014 will lead to bigger and more ships in East Coast ports,
including the Port of Newark, which is the largest port on the
East Coast. This kind of inquiry will not come as a surprise to
you, I'm sure. As Administrator, what might you do to take a
proactive role to prepare the Port of Newark and other East
Coast ports for this large increase in freight volume?
Mr. Matsuda. Thank you, sir. I believe that the Panama
Canal reopening and expansion is probably going to be one of
the biggest factors that changes freight flows in our country
over the next decade. It's a significant change for, not just
the East Coast ports, but also the Gulf ports, in the Gulf
region of our country. We at the Maritime Administration have
already begun to look at this issue. I've been up to the--well,
the Port of New York/New Jersey many, many times--but even
twice as Acting Administrator--to understand the challenges
they face, and we have already commissioned a study to take a
look at how the Panama Canal reopening might impact, like I
said, our entire country, and we hope that that will prove
valuable, in terms of ports and other policymakers determining
how they might best prepare for this.
Senator Lautenberg. For each of you, also, what we've seen
over the recent years is the globalization of trade and
commerce. And, whether it's by ship or by air, America must
have its structure prepared to take advantage of the
opportunities that are presented as a result of this
globalization.
So, last year, David, President Obama signed into law
legislation that we wrote to establish a Marine Highways Grant
Program. As Administrator, how might you implement this new
program to meet the goal of moving more of our freight off the
roads and onto the sea?
Mr. Matsuda. Senator, I believe that was a key piece of
legislation that will really help bring about a change in
getting the--America's Marine Highway Program up and running.
We want to create more services, and expand the existing ones,
to make sure that shippers have a choice when they look to--
look for transportation services on domestic routes.
We can take advantage of getting cargo moving in a more
efficient manner on the water. A recent study showed that a ton
of cargo can be moved 576 miles on one gallon of fuel on a tug-
and-barge system, and that certainly presents some major
opportunities when it comes to energy savings, and we'd really
like to take advantage of that. So, we are going to be looking
very closely, I believe, at getting the program up and running,
getting the funds out the door, and making grant awards as soon
as we can.
Senator Lautenberg. It will also help our environment.
Mr. Matsuda. Absolutely.
Senator Lautenberg. And, Mr. Huerta, regional airlines
operate half of all domestic departures and move more than 160
billion of our country's passengers each year. If we're to have
one level of safety for both regional and major network
carriers, shouldn't the pilots of the regional carriers be
trained and compensated at the same level as pilots for major
network carriers, and particularly if they're flying identical
routes? Because each one of them has enormous responsibilities
for safety, for reliability. And so, what do you see as a--as
an opportunity, or a criticism, of the fact that often pilots
of regional carriers are paid far less and often are required
to have personal travel to get to their base of operations? But
the fatigue factor has to be reckoned with when their
compensation isn't adequate, and often second jobs are
necessary to provide for their families. And so, what could we
do, what should we be looking at, in terms of the development
of adequately trained, adequately rested, and adequately alert
pilots that might be captaining an airplane?
Mr. Huerta. Clearly, the responsibility of being an airline
pilot is one of the most significant responsibilities that an
individual can have in the transportation system, and safety
is, without question, the thing that the FAA cares the most
about.
It is--there have been a lot of discussions, and a lot of
interest in, What can we do to take our already impressive
level of safety and continue to improve it and make it better?
I think that what it comes down to is--you touched on the
one level of safety, and it is clear that there has to be one
level of safety for all air carriers throughout the aviation
system. And we need to look at ensuring that there is adequate
training, that pilot capabilities are what they need to be to
deal with the unexpected as well as the routine, and that we at
the FAA are as vigilant as we can possibly be in ensuring that
appropriate safety standards are met.
The issues that you raise on regional carriers versus
mainline carriers, I think, are significant issues, and I look
forward to getting into the FAA and really understanding and
focusing on what can we be doing to constantly improve our
safety environment.
The Administrator has pointed out, on a number of
occasions, that there's no one silver bullet that you can look
at, because you have to look at the specific training that an
individual has for a specific situation, what their experience
has been, and the characteristics of the route that's being
flown. It's all important, and it all needs to be looked at,
but, at the end of the day, you can't lose sight of the fact
that we have to enforce one level of safety.
Senator Lautenberg. Mr. Huerta, the airspace around Newark
is one of the most complex and congested in the world. Newark
Airport's the country's most delayed airport--cause delays that
ripple throughout the country. What can we do to alleviate the
congestion and delays that do occur at Newark Airport? I know
that you're familiar with what the problems are. What can we do
to solve them?
Mr. Huerta. Well, you are correct that I'm familiar with
the problems. I've spent a lot of time in delays at Newark
Airport over the course of my career. And it is a large,
complex airport, and it's in a large and complex metropolitan
area of several other airports.
This is a lot of what the FAA hopes to accomplish through
the NextGen system. How do we bring more traffic through the
system? How do we make the system operate more efficiently,
effectively, and to better be able to respond to different
conditions and such things as weather and traffic? And so, this
is what the new system is all about. How do we improve the
capacity of the system?
And the onus is on the FAA to figure out, How can we
accelerate and improve upon an already very ambitious schedule
for deployment so that we can take advantage of the
capabilities that the new system will get us, down the line?
We've had some success in rolling out aspects of the
program, and I understand that the FAA met nearly 100 percent
of its milestones in the last year, in 2009, for the deployment
of NextGen. And we've got to continue to focus on ensuring that
milestones are met and that the system is deployed in a way
that deals with complex metroplex areas such as you have in New
York and New Jersey; and in particular, Newark Airport.
Senator Lautenberg. As you might know, it's not simply, or
not only, the allocation of space and making sure that
schedules are realistic, but also, as your neighbor at the
table learned during our working together in my Senate
operation, that the noise level issues that people are finding
as a result of the shifts in the airspace use will come, I hope
not to haunt you, Mr. Huerta but to bring to your attention, I
promise.
[Laughter.]
Mr. Matsuda, the United States Merchant Marine Academy is
in an unacceptable condition. Its infrastructure is
deteriorating. It's had difficulty maintaining effective
leadership, and nearly $20 million in financial reporting
violations were recently discovered. As Administrator, what
might you do to improve the financial management, the planning,
strategic planning, quality of mariner education, training, at
the Academy?
Mr. Matsuda. There's a--we are taking a very close look at
the Academy at Kings Point. Recently, we are--we have opened an
announcement to begin a search process for a new
superintendent, and we feel that that holds great promise to
instilling leadership there for the future.
I think it's probably fair to point out that the
Secretary--one of Secretary LaHood's top priorities has been to
make Kings Point the crown jewel of the service academies. And
I share that vision. I believe that, with leadership, proper
financial accountability, and investment in, not only the
facilities there, but these are investments in our next
generation of ship officers in our country, and they'll
continue to be the best in the world if we make those
investments.
So, what we're doing is, we have a system for taking a look
at all 47 of the recommendations made by the Government
Accountability Office, and we will have--make sure that there
are financial controls in place to ensure that taxpayer dollars
there are being well spent, and not for any reasons that they
would find to be improper.
Senator Lautenberg. There are all kinds of reasons to make
the Merchant Marine Academy as fine an educational facility as
we can have, because, as you point out in your testimony, the
fact is that suddenly the merchant fleet is called upon to
bring relief to Haiti, we find that the merchant fleet is
called upon for other moments of crisis in addition to their
normal functioning. And it's critical, in my view, that the
United States, if I may say, the greatest power on the globe--
to have fleet representation out there that can manage to be
effective when called upon in emergency.
And I had my own experience learning something about the
Merchant Marine when I was in uniform, a long time ago, and
when we had 3,000 soldiers on about a 300-foot vessel, going
through the seas to bring us back to America from Europe. I
thought I was traveling in the utmost luxury, only because of
the destination, not because of the quality of the
accommodations.
[Laughter.]
Senator Lautenberg. But, you learn very quickly how
important good management of a fleet is, and what--and I'd like
to see us be able to have, if possible, is more American flag
vessels out there, as well.
There's been little Federal investment in our great
infrastructure--including ports and rail--even as freight
traffic is projected to increase nearly 70 percent by 2020.
What kind of a priority should freight be given as Congress
considers the next transportation bill? That includes funding,
of course, as well.
Mr. Matsuda. Well, it's certainly my view that freight has
to be a part of any future policy discussions. I can assure you
that Maritime Administration would work very closely with the
Committee and yourself to, you know, help develop any kind of
proposals. We're happy to supply information.
I can tell you that the American Marine Highway Program, if
we're serious about relieving congestion in some of our surface
corridors, we've got to take advantage of some of the natural
efficiencies that exist by moving goods on the water, and that
that program ought to, or can, play a role, certainly, in any
kind of future freight policy.
Senator Lautenberg. We wonder what we can do to encourage
jobs in the marine building--shipbuilding, ship materials,
electronics, et cetera--what we can do to encourage investments
in that type of thing so that we maintain leadership in the
field of maritime effectiveness.
Mr. Huerta, the FAA has undertaken a redesign of the New
York, New Jersey, Philadelphia region airspace--in our meeting,
you mentioned that we have several other airports, beside the
principal ones, like Teterboro, Westchester, Morristown, and
other airports in the region, along with a significant use by
the military airspace. So, the major overhaul of fight patterns
has raised safety concerns from controllers, and as a
consequence, the noise factor, which I mentioned before, in
2007, an FAA official dismissed the noise problems and as, and
I quote here: ``at best, a side issue.'' Do you believe that
the quality-of-life issues affecting hundreds of thousands of
people in New Jersey, nearby Pennsylvania, and nearby suburban
New York and New Jersey should be considered as a part of a
necessity as we review the redesign process?
Mr. Huerta. Absolutely. The concerns of communities that
are affected by aviation are a factor that is something that we
need to hear and we need to consider as we are making tough
decisions, in terms of what to do about the airspace in that
particular region. But, concerns--it's a multifaceted problem,
and there are a lot of stakeholders, and it's very important
that the FAA listen to all of them.
Senator Lautenberg. With that, I would ask if any of you
have anything else that--if each of you have anything else that
you'd like to say, because we've taken care of what we have to
do to make sure that we have an understanding. But, between you
and the leadership, the Transportation Department's so
critical. And I didn't see a visitor from Alaska here who came
by, and we're happy to have Senator Begich with us.
And, Senator, if you'd like to present your questions,
we're happy to hear them.

STATEMENT OF HON. MARK BEGICH,
U.S. SENATOR FROM ALASKA

Senator Begich. Thank you very much, Mr. Chairman. I will
be brief.
Mr. Huerta, you and I had a conversation, and a very good
one, I believe. And my belief--as a former executive, a mayor,
my belief is, the President has an opportunity to pick who he
would like to be part of his team, but his success and failure
is on your shoulders. So, I wish you the best.
And so, I just have a couple questions. And first, what I'd
like to do--is it ``Mahtsooda''? Is that right?
Mr. Matsuda. Yes, sir.
Senator Begich. Mr. Matsuda, let me ask, if I can, because
Mr. Huerta and I had many questions already in a very short
period, but I feel very confident of some of the response and
understanding of Alaska's uniqueness in regards to air. But,
with MARAD, as you know, MARAD has a unique role in Alaska,
specifically around the large development in Anchorage, which
is our regional port.
Our regional port serves 85 percent of the State
population. It is a fairly significant project. It's one of the
few projects that MARAD has taken on as a large capital
investment, which, of course, we're excited about. I was mayor
when we signed that agreement and moved forward. Now, as U.S.
Senator, I'm hoping to see this port completed. It's one of 15
strategic ports in the Nation. From a military standpoint, and
obviously from a cargo and commodities standpoint, it's very
important.
You folks are the lead agency managing it, and I, again,
don't know how familiar you are with it, but I would love to
get your thoughts, if you have any, in regards to that project,
as one of the largest projects that MARAD has undertaken. And
if you have limited knowledge on it, I would love to have you--
assuming everything goes right and you're sitting where you
need to be sitting--that you feed back to me your review of it,
and a very honest assessment in what things we need to be
improving on, or add to, or make sure that the project
continues. Do you have any comments, generally, on the project?
Mr. Matsuda. Generally speaking I'm familiar with it. I'm
trying to make my way up to Alaska at some point this spring--
--
Senator Begich. We'll bring you up.
[Laughter.]
Senator Begich. You'd like it.
Mr. Matsuda. I have met with the port director, the former
Governor----
Senator Begich. Yes.
Mr. Matsuda--and we've talked about the challenges that lie
ahead. I'm very comfortable with the management that's in place
there to make sure that the project stays on track.
I would point out, though, that the one area that seems to
be causing a little bit of concern is the future funding. And
as you know, MARAD is happy to carry out the project, but we
don't--we can't provide the actual funding. We----
Senator Begich. Right.
Mr. Matsuda. We can use funding from any source--private,
public, Federal, State, local government--and we're happy to do
so, but that seems to be one of the biggest challenges as we go
forward.
And I believe it really will be a model for how MARAD can
work and develop ports around the country. There's been
tremendous progress made there already, and we'd like to
continue that.
Senator Begich. Your point on the diversity of the funding
is one that I want to just add a little emphasis to. That is
unique. It has private, public--both local bonds, as well as--
or revenue bonds as well as revenue fees, it has State dollars,
it has Federal dollars from multiple sources. So, it's a very
complex funding mechanism. But, all ports are complex in their
own use; it's not just for one type of commodity. So, I
appreciate you mentioning that.
And again your review and your comments of how we can
continue to move that project forward would be important to me
here and, I know, to Alaska.
The other piece is, as you look at it--as mayor, one of the
things we did, was to segregate the port into multiple phases.
And we did that on purpose, because--my worry was, just what
you said, that it's so large that we may end up not getting the
job done. And so, we wanted to make sure we did it in
components. So, again, as you look at it and review it,
indicate to us, at least in this office, what you feel is
anything that we need to improve on in that aspect. I'm a
believer that everything we do can always be better. But, I do
believe that the project is a great project and has some great
support across the Federal system, the State system, and the
local government.
So again, thank you for your willingness to, one, come up
to Alaska. You know, Secretary Locke just came up to Alaska in
January, and because of that--he came in January--he gets extra
points for that.
[Laughter.]
Senator Begich. So I would just note that. But, we're happy
to take you, anytime. But, again, thank you very much for your
willingness to serve the country and serve in this position.
Michael, if I can ask you just a couple of the points that
you and I talked about--from FAA in regards to the concerns we
have in Alaska, that--the general aviation component and how
different that is than regional, as well as the larger lines,
that Alaska has some unique challenges. One that we talked
about, is transporting oxygen to areas, which is life-and-
death, literally. We've had to get waivers to do that, because
the rules and the regulations are pretty intense. Is that an
area that--and I'll use that as an example--but your
commentary, just in your view of how Alaska has some remoteness
that's very different than most remote areas around the
country--can you give me just some feedback and thought on
that, from your perspective?
Mr. Huerta. Sure. You know, as you point out, the aviation
system is to Alaska what the highway system is to many other
States. It is a principal mode of transportation, and it
introduces a level of complexity that you don't see in other
parts of the country.
Yes, we spoke about the oxygen issue when we met,
yesterday, and the thing that--what I will commit to you is, we
will certainly look at this carefully, recognizing the unique
situation that exists there in Alaska and what the alternatives
are that are truly available, and, at the end of the day,
making sure that we are maintaining the absolute safety of the
system, which is, of course, our highest priority.
But, Alaska presents some unique challenges. You know, it's
a big State, and there are a lot of parts of the State that the
only way to get there is by air.
Senator Begich. Absolutely.
Let me just finish here, Mr. Chairman, and say that--the
other thing we talked about, especially as it gets closer and
closer to springtime here, not only is the issue on
transporting that product important for life-and-death issues
of individuals, as we move into the construction season, we
also have an issue of moving acetylene torches and other types
of equipment by air to these remote areas where we're building
facilities that, literally, we're announcing daily here,
stimulus money to be put into those communities, but if they
can't get certain equipment there because of these regulations,
and they--like you said, it's the only way--we can't truck it
in, we can't boat it in; we can only fly it in. And so, again,
as you review that, I assume you'll keep an open mind of how
you look at that component to ensure that we get a timely
response in regards to construction of these projects that we
have out there.
Mr. Huerta. Certainly.
Senator Begich. Let me end there, Mr. Chairman. Again, we
had a great conversation, even though it was brief. I know my
staff--James Feldman--probably grilled you prior to me getting
there. Staff do a good job on that, and they give me the easy
job. But I, again, thank both of you for your willingness to
serve--serve the President, serve this country--and again, I
wish you both the best in your new positions, as--hoping
everything goes smoothly--and again, invite both of you to
Alaska in your own unique new role.
Thank you very much.
Mr. Chairman?
Senator Lautenberg. Thanks very much, Senator Begich.
No place needs available aircraft like Alaska. I've been
there and had a chance to see the beauty, but also the terrain
of Alaska, and we want to make sure that whatever investment's
going to be made in aviation, whether technology or training
and so forth, are there.
And, Mr. Huerta, there's one thing that I would like to ask
you about before we complete our review here, and that is the
shortage of qualified--professionally qualified controllers in
a lot of the airports. One of them that has a shortage--it's,
frankly, had my interest for some time now--is at Newark
Liberty Airport, at the control tower. It says to be fully
complemented, has to have 35 controllers to move the traffic as
efficiently and as safely as we can. Right now, there are only
26 certified controllers, and eight trainees manning the tower.
And I'd like to know if I can get your commitment to fully
review that. And I'd like a particular look at the Newark
tower, about certified controllers and what we might do to fill
the required number of people in there that we need.
Mr. Huerta. Controller staffing is certainly a significant
issue, and, in particular, at a significant airport like
Newark. Yes--you know, I understand that there have been
questions about the staffing, and I discussed them with your
staff. And once I am in position over at the FAA, I will
certainly give you my commitment to take a careful look at that
and get back to you.
Senator Lautenberg. We'd ask you to do that.
With that, I say thanks, to each of you. I feel very
confident that we have good people to fill these posts. Your
training and attitude and experience couldn't be better. And I
commend you both for your willingness to serve, to accept some
of the abuses that may be heaped on you from the Congress. And
I speak for both bodies, not just the Senate.
And say that we're going to close this hearing. Questions
for the record are due to be submitted to you by 6 p.m. this
Thursday, and the Committee will ask colleagues--we'll notify
them--to have their responses to their questions by 6 p.m. on
February 2.
And with that, I would close the meeting, and with the
belief that quick processing of your confirmation can be
accomplished here and that you'll be able to not be concerned
about this, but about the effectiveness of the jobs that you're
doing. And we know that you'll do them well.
And, with that, this hearing is concluded.
[Whereupon, at 3:33 p.m., the hearing was adjourned.]
A P P E N D I X

Response to Written Questions Submitted by Hon. Tom Udall to
Hon. Michael Peter Huerta
Question 1. Mr. Huerta, news reports this month discuss at least 3
flights that were diverted due to ``disruptive'' or unruly passengers.
Just last Friday, a flight from Washington Dulles to Las Vegas was
diverted when an unruly passenger, who may have been intoxicated, tried
to open an emergency exit while in flight.
In response to a notorious 2006 drunk driving incident following a
flight into Albuquerque, I crafted legislation (S. 743) to require
flight attendants and gate agents to receive training on recognizing
and dealing with intoxicated or disruptive passengers. I am pleased
that this Committee already included my bill as part of legislation to
reauthorize the FAA. Do you agree that flight attendants and gate
agents should receive such training to help ensure passenger safety in
the air and also protect public safety on the ground?
Answer. I agree with the important goals of S. 743, and it is my
understanding that the FAA has a rulemaking underway to address this
area. The FAA established an Aviation Rulemaking Advisory Committee
(ARC) consisting of government, industry and labor unions in order to
update all of our crewmember training requirements

Question 2. Mr. Huerta, small aerospace companies in my state have
been frustrated by long delays in getting FAA certifications for new
products--apparently due to inadequate staffing to handle such
requests. This situation has already improved under the new FAA
Administrator Randy Babbitt, who assured me that providing timely FAA
certifications is a priority.
With manufacturers making new products to take advantage of NextGen
implementation, I hope that you will make sure that FAA devotes
adequate attention and resources to ensure that companies receive
timely responses to their certification requests. As FAA Deputy
Administrator, will you work to ensure that the agency devotes adequate
resources to avoid unnecessary delays for FAA certifications?
Answer. I am sensitive to the impact that delay can have on the
U.S. aerospace industry's ability to obtain FAA certification. I will
commit to review the current situation and make the most effective use
of our resources to reduce delays in the future.

Question 3. The FAA currently classifies the Albuquerque air
traffic control center (ZAB) as a Level 10 facility, which may no
longer represent the volume and complexity of air traffic it now
handles. As you know, the facility's classification directly affects
air traffic controllers' compensation.
My understanding is that no process is in place to bring the FAA
and air traffic controllers to a mutual agreement. When I, along with
the other members of New Mexico's Congressional delegation, raised
concerns about the Albuquerque Center's classification, Administrator
Babbitt responded that the matter is now subject to litigation. I find
this unfortunate and would prefer to see the FAA and controller's union
work together to resolve this issue fairly in a manner that promotes
safety.
Mr. Huerta, I hope that under your leadership, the FAA will
reconsider the approach it has taken to the dispute over the
Albuquerque Center's classification and avoid similar situations in the
future. Will you agree to examine this matter and seek a fair process
to resolve concerns about the classification level of the Albuquerque
Center?
Answer. Yes, in fact, I understand that this issue is under review
by the FAA and the National Air Traffic Controllers Association
(NATCA).
______

Response to Written Questions Submitted by Hon. Kay Bailey Hutchison to

Hon. Michael Peter Huerta
Question 1. We often rely on the technical and legal expertise of
agency staff when we are developing or reviewing proposed legislation.
Can all members of the Committee, and their staff on their behalf,
count on this cooperative relationship continuing with your respective
agencies?
Answer. I strongly believe that agency staff should work closely
with Congress in providing technical and legal expertise to assist in
developing and reviewing legislation. The Committee can be assured that
I will maintain a cooperative working relationship with majority and
minority members of the Committee.

Question 2. As I mentioned in my statement, I am increasingly
concerned with how the FAA is moving forward on NextGen implementation.
What is your vision and what are your goals for the next 2-3 years on
accelerating NextGen effectively and efficiently that will provide
operational benefits to the system and its users?
Answer. NextGen remains a top priority for the Administration, the
Department of Transportation (DOT) and the Federal Aviation
Administration (FAA) and as such, I view it as one of my priorities to
ensure we are moving forward on NextGen implementation in order to
realize greater benefits sooner.
That said, considerable progress is already being made toward
making NextGen a reality. The FAA met 94 percent of its high-priority
NextGen goals in FY09. For example, the new satellite-based aircraft
surveillance tracking system, Automatic Dependant Surveillance--
Broadcast (ADS-B), was made operational in the Gulf of Mexico where
surveillance has never before been possible. Over the next 2-3 years,
the FAA will continue to build out the ADS-B infrastructure on
schedule.

Question 3. I think that most, if not all, members of this
committee believe that FAA reauthorization should be a top priority
during this session of Congress. But we will not be able to enact a
bill unless the Administration steps up and says the bill's passage is
important and helps make it happen. To what extent do you believe we
can count on the Administration to make FAA reauthorization a priority
for Congressional action?
Answer. If confirmed, I would make the FAA reauthorization a top
priority. I understand that Administrator Babbitt believes that H.R.
915 and S. 1451 provide a basis for discussions in moving forward. If
confirmed, I look forward to working with Congress to secure
reauthorization.

Question 4. As you probably have come to realize from your
briefings in preparation for today's hearing, many of the same type of
challenges that faced the department when you served there in the 1990s
remain today. What did you learn in your previous work at DOT that you
hope to now rely on to help you in your role as FAA Deputy
Administrator?
Answer. I have been impressed with the dedication, experience and
caliber of the professional staff I have met at the FAA and I look
forward to working with them if confirmed. As is often the case in
large organizations, however, the FAA does face many challenges.
In my previous tenure at DOT, I had responsibilities which required
agencies and offices to work cooperatively in ways that crossed
organizational lines. This required everyone to think outside of
business as usual and to focus less on process and more on solving
problems.
During my preparatory briefings, a concern I heard throughout the
FAA was that the challenges facing the agency in the future will
require new thinking and new ways of doing business. The professional
staff is concerned that the agency needs to break through bureaucratic
``stovepipes'' to maximize its effectiveness. This will require the
support and active participation of the Administrator and Deputy
Administrator. I know that Administrator Babbitt shares my commitment
to ensuring that the FAA adapts to the new challenges it faces in the
future.
______

Response to Written Question Submitted by Hon. John Thune to
Hon. Michael Peter Huerta
Question. This Committee has paid a good amount of attention over
the past year both with respect to the FAA Reauthorization bill and
hearings having to do with Aviation Safety. I would appreciate knowing
your views on the current regulations regarding pilot duty time and how
the practice of pilots commuting to their duty station can have
significant consequences when it comes to the safety of passengers. I
realize that this is currently the responsibility for pilots to self-
enforce when they should not fly, however as was witnessed in the
Colgan crash in Buffalo roughly one year ago, both pilots were
commuting from long distances--the pilot commuted from Tampa and the
copilot from Seattle.
Answer. Pilots bear an important responsibility to ensure the
safety of their passengers and they, like any professional in a safety
sensitive position, have a responsibility to show up for work fit for
duty, without being fatigued or impaired. Long commutes are of concern
if they affect fitness for duty, but this is only one of several
factors that might affect performance. I have not had an opportunity
yet to fully study the scope of regulations that relate to ensuring
fitness for duty for pilots. If confirmed, I look forward to working
with the Committee and Congress to ensure that safety is always the
overriding factor in any consideration of regulations.
______

Response to Written Questions Submitted by Hon. Sam Brownback to
Hon. Michael Peter Huerta
Question 1. We have now had eight extensions of the programs of the
FAA. I'm disappointed that the Obama Administration has not been more
aggressive in working to secure passage of the FAA reauthorization
bills now pending before Congress. Do you plan to take a leadership
role to ensure the Administration advocates for quick passage of an FAA
reauthorization bill pending before the Congress and to convey the
impact of this delay on safety, job creation, and efficiency benefits
of the reauthorization bill?
Answer. If confirmed, I would make the FAA reauthorization a top
priority. I understand that Administrator Babbitt believes that H.R.
915 and S. 1451 provide a basis for discussions in moving forward. If
confirmed, I look forward to working with Congress to secure
reauthorization.

Question 2. In 2008, the United States signed the Bilateral
Aviation Safety Agreement (BASA) with the European Union (EU) which
calls for mutual cooperation on aviation safety issues and reciprocal
oversight for the certification of aircraft and repair stations. This
agreement was signed after years of assessments regarding the aviation
safety requirements and capabilities of the aviation authorities in
Europe and the effectiveness and proven performance of individual
certification and safety agreements that the U.S. currently has in
place with several EU nations including the United Kingdom, France,
Ireland, and Germany.
As you know, the BASA is an international agreement that does not
have to be ratified by the U.S. Senate. After it was signed,
implementation of the BASA was initially delayed over a dispute
regarding the fees and charges U.S. manufacturers would have to pay
E.U. regulators. However, it is my understanding U.S. industry is
sufficiently satisfied with the progress made on fees and charges and
that this issue is no longer holding up implementation of the BASA;
rather its implementation is necessary to address the fees and charges
issue. Given that the U.S. signed the BASA, and that the fees and
charges issue is being resolved, will the Administration move forward
with the implementation of the BASA?
See response below.

Question 3. If not, given that the FAA has made the determination
that EASA and the EU member safety authorities have the capability to
perform this oversight on FAA's behalf, what is the rationale for this
delay in implementing the agreement?
See response below.

Question 4. Although the BASA has not yet been implemented, the
E.U. has allowed more than 1,100 U.S. based repair station operators to
repair E.U. registered aircraft and parts as long as those repair
stations hold a FAA part 145 repair certificate. These U.S. stations
support more than 130,000 jobs and derive a considerable amount of
business from the E.U. market. If the BASA is not implemented, the
majority of these U.S. repair stations will lose the ability to work on
E.U. registered aircraft, potentially jeopardizing thousands of jobs.
Are you aware of the negative consequences to U.S. industry and
American jobs if the BASA is not implemented?
See response below.

Question 5. Do you believe that the FAA is aware of the negative
consequences to U.S. industry and American jobs if the BASA is not
implemented?
See response below.

Question 6. Will you commit to me to use your position as Deputy
Administrator to push the FAA to implement the BASA?
Answer. Thank you for your questions on the BASA agreement FAA
entered into with the European Union (EU) in 2008. I am well aware of
the safety enhancements BASA is intended to support, and I understand
that the FAA and the EU negotiated in good faith to reach an agreement
that met our mutual goals. I also understand that there are several
challenges to the implementation of BASA. Among those challenges are
legislative provisions in the pending FAA reauthorization bills being
considered by Congress. If confirmed, I will work with the Committee
and Congress to address outstanding issues and work toward
implementation.
______

Response to Written Questions Submitted by Hon. Kay Bailey Hutchison to

David T. Matsuda
Question 1. We often rely on the technical and legal expertise of
agency staff when we are developing or reviewing proposed legislation.
Can all members of the Committee, and their staff on their behalf,
count on this cooperative relationship continuing with your respective
agencies?
Answer. Absolutely. I look forward to a continuing cooperative
relationship with Congress.

Question 2. What will be your top priority as Administrator?
Answer. If confirmed, my top priority as Administrator will be to
ensure our Nation has a merchant marine sufficient to meet our sealift
needs . To this end, we will develop policies that will enable the
marine transportation industry to become a growing source of gainful
employment for Americans, as it adapts to our future needs; we will
seek to improve commerce by developing more efficient ways to move
freight; we will continue to ensure that our sealift capability in
times of national emergency or war is fully functional and ready, and
we will continue to lead the Nation in preparing a new generation of
mariners.

Question 3. Because of the escalation of piracy off the Horn of
Africa, there is a trend for vessel owners to place private security
teams onboard vessels. What is MARAD's role in ensuring a standard of
training for these security teams?
Answer. United States Coast Guard provided minimum guidelines for
contracted security services (PSA 5-09) along with related piracy
guidance through a series of Port Security Advisories available on the
USCG Homeport website and the MARAD website.
MARAD plays a key role in the training of merchant mariners through
the development of International Maritime Organization (IMO) maritime
security courses and workforce development. Working with the U.S. Coast
Guard and IMO, Vessel Security Officer, Company Security Officer, and
Facility Security Officer anti-piracy training courses were developed
by the United States Merchant Marine Academy. MARAD continues to
certify maritime security training providers who meet the criteria
established by the U.S. Coast Guard. To date, more than 40 training
providers have been certified across the country. Efforts are also
being made to include anti-piracy and security training in the academic
programs at USMMA and the state maritime academies and to augment this
training at the maritime union schools.
MARAD strongly supported the Military Sealift Command's proposal to
create and implement ``Anti-Piracy Assistance Teams'' (APAT) for
commercial vessels. These teams consist of personnel from the Naval
Criminal Investigative Service and MARAD. On a voluntary basis, these
teams visit U.S.-flag vessels and offer recommendations on how to
improve a vessel's physical defenses against piracy. The teams also
review security tactics, techniques and procedures and make appropriate
recommendations. To date, seventeen APAT vessel assessments and
recommendations have been completed. MARAD expects that this process
may be embraced by the international community for similar
implementation.

Question 4. Should there be a standard rule of engagement and force
policy?
Answer. Ultimately, it is the law of the flag state that governs
the use of force. The United States Coast Guard has issued Port
Security Advisory 3-09, which provides guidance on self-defense of
others by U.S.-flagged commercial vessels operating in high-risk
waters.

Question 5. What can MARAD do in partnership with the Navy and the
Coast Guard to reduce the threat of piracy?
Answer. If confirmed I look forward to further collaboration with
the Navy and Coast Guard to combat piracy. MARAD already has efforts
underway. As part of the Maritime Administration action plan for
addressing piracy off the Horn of Africa, MARAD provides operational
advice to U.S.-flag owners and operators, including counter-piracy
measures and awareness on a regular basis through MARAD Advisories,
through a comprehensive and frequently updated website, and through
MARAD's electronic ``MARVIEW'' system which is available to registered
users. The information is intended to assist ship owners, operators,
and other maritime industry representatives to be prepared to prevent
seajackings. Internationally, MARAD will continue efforts as the USG
co-chair, along with the USCG, for working group three (WG3) of the
U.N.-sponsored Contact Group on Piracy off the Coast of Somalia
(CGPCS). WG3 focuses on industry self-awareness and other means of
utilizing best practices in countering piracy. The CGPCS completed its
5th plenary on January 28, 2010, at the United Nations in New York.
This is an international issue with a shared responsibility of both
industry and the military and over 45 flag-states are represented in
this Contact Group.
The threat of piracy will continue, but the risk of piracy may be
reduced by encouraging the use of best practices aboard commercial
vessels. Additionally, the ability to share information between Navies,
Coast Guards, and the commercial sector to avoid potential pirate
attacks continues to be improved. Air assets are particularly helpful
in the West Indian Ocean to provide situational awareness to commercial
vessels. The U.S. Office of Naval Intelligence, United Kingdom Maritime
Trade Office, Maritime Security Center-Horn of Africa, and NATO
Shipping Center have all been instrumental in sharing pertinent
information with ship owners and operators.

Question 6. What changes, if any, would you recommend for
curriculum at the U.S. Merchant Marine Academy to ensure our Merchant
Marine Officers are properly trained and ready to lead vessels and
crews safely out of harm's way with respect to piracy?
Answer. Efforts are currently underway to develop anti-piracy
training courses at the U.S. Merchant Marine Academy. If confirmed, I
will direct the Superintendent to continue to develop and teach such
state-of-the-art maritime courses.

Question 7. The expansion of the Panama Canal will allow for a new
generation of massive cargo ships to enter U.S. ports, including ports
in my home state of Texas. What can the Maritime Administration do to
ensure our ports are prepared for these vessels?
Answer. I want to let you know that recently I visited the Port of
Houston and had very instructive meetings with port officials. I
believe that the expansion of the Panama Canal and the trend toward the
utilization of larger cargo ships will clearly affect our trading
patterns and supply chain. A new post-Panamax all-water route to the
East and Gulf Coasts could open markets from the Mississippi River to
as far west as Denver, Colorado to an entirely new supply chain. With
the potential for new Arctic shipping lanes and increased utilization
of the Suez Canal, we are facing a new freight delivery market. To best
realize the efficiencies of this new market, I understand that the
Federal Government must play an active role. Specifically, MARAD could
certainly help coordinate port access and capacity issues, as well as
the intermodal connectors that feed these facilities. Failure to take
advantage of these potential efficiencies, could add costs for U.S.
consumers and exporters, and negatively impact the competitiveness of
our transportation industries.
Currently, there are few studies that actually analyze these
factors--and historical data does not apply in this situation. MARAD
will commission a study to fully explore the impact of a newer, wider,
and more efficient Panama Canal on our national freight transportation
system. The outcome of this study will assist in the shaping of
national policies, as MARAD works to address the future needs of our
marine transportation system.
MARAD is also moving forward on port improvement projects. MARAD is
helping several U.S. ports modernize and numerous ports have requested
our assistance in their development planning and coordination to meet
their capacity and modernization demands. Additionally, MARAD is
implementing a Marine Highway program to help relieve surface
congestion and move freight by water in a more energy-efficient manner.
______

Response to Written Questions Submitted by Hon. John Thune to
David T. Matsuda
Question 1. Agricultural production is a key component of South
Dakota's economy. What can MARAD do to reduce transportation costs for
agricultural commodities and make this industry more competitive?
Answer. There is growing interest in short sea shipping in the
agricultural community, as it offers an economical and environmental
alternative to land transportation. Currently, the bulk of certain
products, like grain, are moved by truck from the field to a terminal
and then by truck or rail to an export position. North America's
``marine highways'' are one way of transporting these commodities for
export more efficiently and potentially less costly than traditional
land-based movement. These corridors exist where waterways or coasts
allow for marine movement of goods as an alternative to existing
surface corridors. If implemented correctly, these opportunities can
lead to reduced transportation costs for shippers of agricultural
products.
I am also aware that in addition to commercial agricultural sales,
South Dakota is a major supplier of agricultural products for the
Government's humanitarian food aid donations. Food aid transportation
costs could potentially be reduced by an increased utilization of
commercial terms and practices in procurements. Use of long term
purchase and service contracts could help to smooth the flow of cargoes
over the entire year thereby reducing congestion, a reduction in
commodity purchase costs and transportation rates by not buying at the
height of markets. Commercial agricultural transportation costs can
also be reduced by improving intermodal and port connections and
expanding the use of marine highways where possible. Niche markets for
specialized grains can be enhanced by increasing the use of
containerization with rapid movements, particularly to Asia. MARAD
looks forward to assisting shippers and shipper agencies in these
areas.

Question 2. The Ready Reserve Force plays an important role in
supplying and supporting our troops deployed overseas. Does the current
fleet have the necessary resources to meet the needs of our Armed
Forces?
Answer. The Department of Defense will soon finish the Mobility
Capability Requirements Study (MCRS), which provides guidance on the
future requirements for the Ready Reserve Force (RRF). The draft
document basically states that all the current capability in the RRF
will be needed out through the 2016 timeframe. The concern being
addressed in anticipation of this requirement is the recapitalization
of the existing 49 RRF vessels.
The targeted service life of RRF ships was determined to be 50
years. This means that the first ship will reach the end of its useful
life next Fiscal Year. Plans are in place to extend beyond 50 years in
limited cases and funding needs have been identified to ensure the
remaining fleet reaches the 50-year life. MARAD has identified the
additional funds needed starting in 2012 to ensure the 50-year life.
Vessel replacement or recapitalization is focused on the first
roll-on-roll-off vessel reaching 50-years in 2017 and 23 more reaching
50-years by 2023. MARAD intends to propose three methods of replacing
vessels.

1. New-build in U.S.: MARAD's predecessors have a long history
of successful ship building programs, including LIBERTY ships,
VICTORY ships, and the Mariner class program. We are
considering proposing that MARAD's expertise be relied upon to
design and build ships that will function well for rapid-surge
military support and introduce a new type of vessel that will
leverage the ability of U.S. companies to venture into new
services such as coastal Marine highways initiative and maybe
foreign trade. The new vessel will be competitively built in
smaller U.S. ship yards for greater price competition and be
highly automated to take advantage of U.S. technological
strengths.

2. Substantially Extend Service Life: It is conceivable to
extend the current life beyond 50 and even 60 years. RRF ships
do not operate annually like their commercial counterparts, so
the lack of wear-and-tear supports a longer service life.

3. Foreign Purchase: In the early 1990s, MARAD purchased 14
vessels that are currently among the main assets in the RRF. At
that time, purchasing foreign built vessels was allowed.
Purchasing foreign built ships is now prohibited by statute,
however, the current economic downturn has created a very
favorable buyer's market for ships. The U.S.-built inventory of
ships does not include the types required that might be
available for purchase.

The MCRS also identifies a substantial need for additional ``handy-
sized'' product tankers in support of military operations. Analysis is
continuing to determine the portion of this requirement that can be
provided by commercially available vessels. It is expected that this
will show a strong reliance on foreign built, owned, and operated
vessels. Discussions with military planners have indicated that less
risky assets are needed more quickly than commercially available and
that the RRF can meet a substantial part of the requirement at less
expense.
Another mission that is not identified in the MCRS is support of
disaster relief efforts. The Department of Defense is called upon
regularly to provide relief and recovery services during national and
international emergencies. Recently, the Nation has called upon MARAD's
ships to help provide this service as shown in New Orleans after
Hurricane Katrina's devastation, in Galveston after Hurricane Ike's
devastation, and in Haiti after the earthquake.
______

Response to Written Questions Submitted by Hon. David Vitter to
David T. Matsuda
Question 1. Congress recently provided MARAD additional funding for
Title XI shipbuilding loan guarantees and has fully funded the
program's administrative costs. Several commercial shipbuilding
projects that would employ thousands of American workers have applied
for such guarantees, but the agency has been slow to process them. How
do you intend to improve the MARAD's capability to expedite approval of
loan guarantees for economically sound projects that will help provide
much-needed jobs for Americans this year?
Answer. I agree that expedited approval of loan guarantees can help
put Americans to work in shipyards sooner. Shipowners and shipyards
applying for Title XI loan guarantees must meet the requirements for
obtaining such loan guarantees. They must meet certain financial
requirements with respect to working capital and net worth, both of
which are based on such factors as the amount of the guaranteed
obligation, financial strength, intended employment of vessels or
technology, and credit worthiness of the applicant. All guarantees
under the program must also be determined to be economically sound.
While these requirements are necessary, and by their very nature
extensive and complex, MARAD can work closely with the applicants to
ensure that the process advances as quickly as possible. In order to
facilitate MARAD's capability to expedite approval of loan guarantees,
and if confirmed, I will be seeking additional personnel for this
purpose.

Question 2. I want to voice my support for ``Section 2''
requirements for contracts related to the National Defense Ready
Reserve Fleet. I believe requiring companies that operate and maintain
this fleet to be owned by United States citizens is important for
domestic small businesses, for our industrial base, and for better
maintaining national security. Will you work to maintain this
citizenship requirement for the operation and maintenance of the Ready
Reserve Fleet?
Answer. I fully support the existing regulation requiring so called
``Section 2 U.S. Citizenship'' for RRF ship manager contracts. Further,
I believe any decision to pursue a change to such a regulation must
comply with Federal laws, and should be done in a transparent and open
manner.

Question 3. At your hearing, you stated that you will work with all
stakeholders with transparency in decisionmaking. I thank you for that
commitment.
One area that I believe needs more transparency is MARAD's Ship
Disposal Program. For example, MARAD has not published the names of the
companies in the pre-qualified bidding pool for this program nor the
amounts of the sales bids it has received on vessels since November
2008. Also, a number of contract modifications with foreign companies
for major scrapping work at significant taxpayer expense have not been
published. There are additional concerns that some companies are being
allowed to take U.S.-flagged vessels and reflag them for scrapping in
other countries, possibly evading laws against toxic exports and
undermining our domestic industry. Additionally, I have been told that
a number of Freedom of Information Requests filed on these and other
subjects have not been answered by the agency. What will you do to
address these problems and improve transparency in the Ship Disposal
Program?
Answer. While I understand that certain information related to
legal proceedings and procurement actions cannot be released to the
public because of its potential to affect competition between private
parties, it is my intention to ensure that all requests made under the
Freedom of Information Act be responded to in accordance with the FOIA,
and as promptly as possible.
Responses to the four specific questions are as follows:

a. ``For example, MARAD has not published the names of the
companies in the pre-qualified bidding pool for this program
nor the amounts of the sales bids it has received on vessels
since November 2008.''

I understand that the list of qualified ship recycling
companies is dynamic and subject to change; however, the list--
which is public information--is made available upon routine
telephonic or written request and through requests made under
the Freedom of Information Act (FOIA). Providing the list upon
request also complies with the requirements of the Federal
Acquisition Regulations (FAR).

Sales contracts along with ship recycling service contracts are
posted on the awards section of MARAD's Office of Acquisition
website, which is accessible to the public over the Internet.
Those postings include the value of the awarded contracts.
MARAD uses a simplified acquisition process for commercial
services for the disposal of non-retention ships, as authorized
in FAR Part 13.5. This process provides for a competitive
process to obtain ship recycling price quotations, which are
then evaluated using the published criteria of price, schedule/
capacity and past performance to determine the best value to
the Government. MARAD also added the capability to conduct
vessel sales using this process. While sales are not covered
under the FAR, the sales contracts incorporate FAR contract
principles and sales quotes are evaluated using the same
criteria as the fee-for-service quotes. Only the final awarded
contracts are publicly posted on the MARAD website per the FAR.

b. ``Also, a number of contract modifications with foreign
companies for major scrapping work at significant taxpayer
expense have not been published.''

MARAD has only awarded one contract to a single foreign company
for the recycling of six (6) non-retention ships. I understand
that through an administrative oversight, modifications 18 and
19 to that contract were inadvertently not loaded to MARAD's
public Virtual Office of Acquisition website, which posts all
contracts and modifications for 5 years. Modifications through
20 have previously been posted. Modifications 18 and 19 were
uploaded Jan 29, 2010.

c. ``There are additional concerns that some companies are
being allowed to take U.S.-flagged vessels and reflag them for
scrapping in other countries, possibly evading laws against
toxic exports and undermining our domestic industry.''

In response to these concerns, the Maritime Administration has
initiated a number of actions to ensure that all vessels we
approve for re-flagging are reviewed by EPA for environmental
compliance. Before MARAD approves any vessel for foreign
transfer, the Maritime Administration notifies EPA of this
transfer request and will not approve the request unless EPA
notifies MARAD in writing that they have no reason to oppose
the transfer. MARAD is in discussions with the EPA regarding
ways in which this process can further be strengthened. This
issue is an important component of these discussions.
______

Response to Written Question Submitted by Hon. Mark Begich to
David T. Matsuda
Question. The Port of Anchorage is one of 16 commercial seaports in
the U.S. designated as a strategic seaport, based on its importance to
the national defense of this country. The National Oceanic and
Atmospheric Administration (NOAA) is in the middle of evaluating (under
the Endangered Species Act) the Port area to be designated as Critical
Habitat for Cook Inlet beluga whale. The ESA provides an exemption of
Critical Habitat designations based on national security interests
(Sec. 4(b)(2)). I'm concerned NOAA lacks sufficient data to make this
evaluation. If confirmed, could I count on MARAD to work with NOAA to
fully account for the role the Port of Anchorage plays in the security
of this country?
Answer. Absolutely. I am aware that that the critical habitat
designation in Cook Inlet has the potential to affect Port development
and operations, as well as military deployments. I also understand that
the Port of Anchorage receives and distributes 90 percent of all the
goods coming into Alaska, and that port efficiency may be affected by a
critical habitat designation. In that regard, MARAD has been working
with NOAA's National Marine Fisheries Service (NMFS) on issues
associated with construction and operations at the Port since the
belugas were listed as an endangered species in 2008. I assure you that
MARAD will continue to work with NMFS, as well as affected
stakeholders, including the Military and the Port, on the critical
habitat designation to both protect the environment and port
operations.