[Senate Hearing 116-587]
[From the U.S. Government Publishing Office]
S. Hrg. 116-587
THE STATE OF TRANSPORTATION
AND CRITICAL INFRASTRUCTURE: EXAMINING
THE IMPACT OF THE COVID-19 PANDEMIC
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HEARING
BEFORE THE
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED SIXTEENTH CONGRESS
SECOND SESSION
__________
JUNE 3, 2020
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available online: http://www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
52-673 PDF WASHINGTON : 2023
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED SIXTEENTH CONGRESS
SECOND SESSION
ROGER WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington,
ROY BLUNT, Missouri Ranking
TED CRUZ, Texas AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska EDWARD MARKEY, Massachusetts
CORY GARDNER, Colorado TOM UDALL, New Mexico
MARSHA BLACKBURN, Tennessee GARY PETERS, Michigan
SHELLEY MOORE CAPITO, West Virginia TAMMY BALDWIN, Wisconsin
MIKE LEE, Utah TAMMY DUCKWORTH, Illinois
RON JOHNSON, Wisconsin JON TESTER, Montana
TODD YOUNG, Indiana KYRSTEN SINEMA, Arizona
RICK SCOTT, Florida JACKY ROSEN, Nevada
John Keast, Staff Director
Crystal Tully, Deputy Staff Director
Steven Wall, General Counsel
Kim Lipsky, Democratic Staff Director
Chris Day, Democratic Deputy Staff Director
Renae Black, Senior Counsel
C O N T E N T S
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Page
Hearing held on June 3, 2020..................................... 1
Statement of Senator Wicker...................................... 1
Statement of Senator Cantwell.................................... 3
Statement of Senator Fischer..................................... 55
Statement of Senator Udall....................................... 57
Statement of Senator Blackburn................................... 58
Statement of Senator Baldwin..................................... 60
Statement of Senator Thune....................................... 61
Statement of Senator Rosen....................................... 63
Statement of Senator Capito...................................... 65
Statement of Senator Scott....................................... 67
Statement of Senator Duckworth................................... 68
Statement of Senator Lee......................................... 70
Statement of Senator Blumenthal.................................. 72
Witnesses
John Bozzella, President and Chief Executive Officer, Alliance
for Automotive Innovation...................................... 4
Prepared statement........................................... 6
Randy Guillot, Chairman of the Board, American Trucking
Associations................................................... 25
Prepared statement........................................... 26
Ian N. Jeffries, President and Chief Executive Officer,
Association of American Railroads.............................. 38
Prepared statement........................................... 40
Alex Oehler, Interim President and Chief Executive Officer,
Interstate Natural Gas Association of America.................. 42
Prepared statement........................................... 44
Larry I. Willis, President, Transportation Trades Department,
American Federation of Labor and Congress of Industrial
Organizations (AFL-CIO)........................................ 46
Prepared statement........................................... 47
Appendix
Letter dated June 1, 2020 to Hon, Roger Wicker from Christopher
J. Cooper, President and CEO, American Association of Port
Authorities (AAPA)............................................. 77
Letter dated June 2, 2020 to Hon. Roger F. Wicker and Hon. Maria
Cantwell from CJ Evans, Executive Director, Alternative Fuels &
Chemicals Coalition (AFCC)..................................... 79
Letter dated June 2, 2020 to Hon. Roger Wicker and Hon. Maria
Cantwell from Allen R. Schaeffer, Executive Director, Diesel
Technology Forum............................................... 87
Letter dated June 3, 2020 to Hon. Roger Wicker and Hon. Maria
Cantwell from John Bozella, President and CEO, Alliance for
Automotive Innovation.......................................... 91
Letter dated June 3, 2020 to Hon. Roger Wicker and Hon. Maria
Cantwell from Robyn Boerstling, Vice President, Infrastructure,
Innovation and Human Resources Policy, National Association of
Manufacturers.................................................. 100
Letter dated June 3, 2020 to Hon. Roger Wicker and Hon. Maria
Cantwell from Shailen Bhatt, President and CEO, The Intelligent
Transportation Society of America.............................. 102
Letter dated June 3, 2020 to Hon. Roger Wicker and Hon. Maria
Cantwell from Bill Long, President and CEO, Motor & Equipment
Manufacturers Association...................................... 105
Letter dated June 3, 2020 to Hon. Roger Wicker and Hon. Maria
Cantwell from Michael W. Johnson, President and CEO, National
Stone, Sand and Gravel Association............................. 109
Prepared statement of Catherine Chase, President, Advocates for
Highway and Auto Safety........................................ 110
Prepared statement of American Bus Association................... 119
Prepared statement of The Transportation Alliance (TTA).......... 120
Prepared statement of David H. Fialkov, Vice President,
Government Affairs, Legislative and Regulatory Counsel,
National Association of Truckstop Operators (NATSO)............ 130
Letter dated June 4, 2020 to Hon. Roger Wicker from K.N. Gunalan,
Ph.D., P.E., D.GE, F.ASCE, ASCE President 2020................. 134
Prepared statement of American Society of Civil Engineers........ 135
Prepared statement of Chuck Baker, President, American Short Line
and Regional Railroad Association (ASLRRA)..................... 136
Response to written questions submitted to John Bozzella by:
Hon. Roger Wicker............................................ 139
Hon. Dan Sullivan............................................ 140
Hon. Marsha Blackburn........................................ 141
Hon. Maria Cantwell.......................................... 141
Hon. Kyrsten Sinema.......................................... 142
Response to written questions submitted to Randy Guillot by:
Hon. Dan Sullivan............................................ 143
Hon. Maria Cantwell.......................................... 143
Hon. Kyrsten Sinema.......................................... 144
Response to written questions submitted to Ian N. Jefferies by:
Hon. Dan Sullivan............................................ 146
Hon. Marsha Blackburn........................................ 149
Hon. Maria Cantwell.......................................... 149
Hon. Jacky Rosen............................................. 151
Hon. Kyrsten Sinema.......................................... 152
Response to written questions submitted to Alex Oehler by:
Hon. Dan Sullivan............................................ 155
Hon. Marsha Blackburn........................................ 156
Response to written questions submitted to Larry I. Willis by:
Hon. Maria Cantwell.......................................... 157
Hon. Amy Klobuchar........................................... 158
Hon. Kyrsten Sinema.......................................... 159
THE STATE OF TRANSPORTATION AND
CRITICAL INFRASTRUCTURE: EXAMINING
THE IMPACT OF THE COVID-19 PANDEMIC
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WEDNESDAY, JUNE 3, 2020
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 2:33 p.m. in room
SD-G50, Dirksen Senate Office Building, Hon. Roger Wicker,
Chairman of the Committee, presiding.
Present: Senators Wicker, Thune, Fischer, Sullivan,
Blackburn, Capito, Lee, Young, Scott, Cantwell, Blumenthal,
Udall, Peters, Baldwin, Duckworth, Tester, Sinema, and Rosen.
OPENING STATEMENT OF HON. ROGER WICKER,
U.S. SENATOR FROM MISSISSIPPI
The Chairman. The Committee will come to order.
Today the Committee convenes for a hearing on the State of
Transportation and Critical Infrastructure: Examining the
Impact of the COVID-19 Pandemic.
I welcome our panel of witnesses and thank them for
participating. Today we will hear from Mr. John Bozzella,
President and CEO, Alliance for Automotive Innovation; Mr.
Randy Guillot, Chairman of the Board, American Trucking
Associations; Mr. Ian Jeffries, President and CEO, Association
of American Railroads; Mr. Alex Oehler, Interim President and
CEO, Interstate Natural Gas Association of America; and Mr.
Larry Willis, President, Transportation Trades Department, AFL-
CIO.
Thank you all for being here, and I understand Mr. Guillot
is testifying remotely. So welcome to each and every one of
you.
The Committee has conducted several oversight hearings on
COVID-19, including a comprehensive look at the aviation
industry. We are continuing those discussions by considering
the impact of the COVID-19 virus on surface transportation and
its critical infrastructure employees. The pandemic has
underscored the importance of our transportation network in
moving goods and people safely and efficiently, as well as
ensuring supply chain fluidity in response to the unexpected
events.
We are grateful for the many frontline workers who have
shown remarkable resilience and resourcefulness to help deliver
critical care, services, and supplies to those in need. The
transportation sector has countless numbers of these unsung
heroes.
Ranking Member Cantwell and I recently introduced the
Critical Infrastructure Employees Protection Act, along with
Senators Sullivan and Young, to provide support for our
frontline critical infrastructure employees. The bill would
direct the Department of Transportation to coordinate with the
Centers for Disease Control and Prevention and the Federal
Emergency Management Agency to support State and local
governments in making sure that critical infrastructure
employees have access to testing and personal protective
equipment.
The COVID-19 crisis has had dramatic effects on the
transportation sector. U.S. rail traffic has seen some of the
weakest levels since the great recession. The American Trucking
Associations' for-hire truck tonnage index dropped 12.2 percent
in April. Automotive production reached its lowest level since
World War II. In Mississippi, we saw the closure of auto and
truck manufacturing plants affecting thousands of employees and
families.
Yet in the face of adversity, our transportation network
and its hardworking employees have persevered. During the
pandemic, some automakers have been producing ventilators and
they continue to do so as they reopen manufacturing plants.
Freight railroads prioritized movement of essential materials
to manufacturers who are making protective gear for hospital
staff. Truck drivers have continued delivering goods to
hospitals, markets, and homes. And pipeline employees have
ensured their operations keep our homes, businesses, and
hospitals running.
The transportation sector has also embraced technology in
responding to COVID-19. We have seen the use of automated
vehicle systems and ride-hailing vehicles to deliver food to
frontline workers and transport medical supplies and testing
equipment.
The U.S. DOT has worked diligently to support the
transportation sector through emergency actions, stakeholder
guidance, and regulatory relief.
The CARES Act provided help to Amtrak, aviation, and
transit. We included language to give states flexibility on
highway safety grants, and two weeks ago, the Committee passed
legislation, which Ranking Member Cantwell and I introduced
with Senators Thune, Fischer, and Duckworth, that would give
states flexibility on their use of Federal funds for commercial
motor vehicle safety activities.
Today's hearing provides an opportunity for witnesses to
discuss how COVID-19 has affected the transportation sector,
including its employees and customers, and further, to discuss
how Congress can support these efforts. I would ask our
witnesses to describe the work of their members to provide
critical services throughout this crisis and how they see
transportation policy being affected as our Nation begins to
move forward.
This hearing highlights only a few elements of the
transportation sector. To gain additional insight, Ranking
Member Cantwell and I are sending a letter to other
transportation groups to solicit their feedback as well.
Again, I would like to thank our witnesses for
participating in this hearing, as well as the entire
transportation sector and their workers for their response to
this pandemic.
I now recognize my dear friend and ranking member, Senator
Cantwell, for her comments.
STATEMENT OF HON. MARIA CANTWELL,
U.S. SENATOR FROM WASHINGTON
Senator Cantwell. Thank you, Mr. Chairman, and thank you
for holding this hearing on the state of our critical
infrastructure and thank you to the witnesses for being here
today to give testimony on these issues.
Our frontline workers have been tirelessly working to help
contain and mitigate the spread of the virus and to keep
America functioning with our critical areas like health care,
infrastructure, and transportation. And so I am glad to hear
from you today about these issues.
Transportation workers in particular have been critical for
getting people to and from work, getting lifesaving goods out
to hospitals and to first responders. Transportation workers
have also kept food moving through our supply system to our
kitchen tables, and they have stocked our stores with essential
goods. Those workers have put themselves in harm's way on a
daily basis to try to keep America running during this
pandemic.
Unfortunately, we have lost transportation workers and
their families have been impacted. I want to bring one to mind,
Samina Hameed, from my home state of Washington. Samina drove a
bus in King County and she leaves behind a husband, who was
also a bus driver, with three children. So my heart goes out to
her and her family and the loved ones that are impacted by
this.
We held a hearing recently on how our airports and airlines
were doing as it related to public health, and we heard from
Dr. Godwin of the University of Washington about the need for
guidelines. We sent a letter to the task force for the COVID-19
crisis including, Vice President Pence, Secretary Chao, and to
other members asking for such guidelines. I think they still
have not been issued, and I am not sure they are going to be
issued, which I think is a mistake. Guidelines can help us move
forward. They can help us put the right safety measures in
place so our economy can move forward.
Our colleagues also last month, as the Chairman was saying,
introduced the Critical Infrastructure Employee Protection Act.
I was glad to join Chairman Wicker on this bill with Senators
Young, Sullivan, and Blunt. And this bill would direct the
Federal Government to support states in prioritizing testing
and access to personal protective equipment for those brave
people who are on the front line.
I want to mention that that includes fire fighters in my
state. One thing that has gotten left out in some of the PPE
funding has been those fire fighters. You would not think that
they would, but they have. And it is so important since they
are essential in transporting individuals from our nursing home
facilities into hospitals, and we have had a high, high number
of deaths occur in nursing homes. That transport is done by
fire fighters, and they deserve access to personal protective
equipment.
I am also pleased to co-sponsor the Senator Blumenthal
Essential Transportation Employee Safety Act. This bill would
require passengers and freight transportation companies to
abide by the CDC recommendations, including mandatory cleaning,
disinfecting areas, and provisions for personal protective
equipment to our frontline workers.
I also want to especially thank Larry Willis for being
here, speaking on behalf of millions of transportation workers
who are also on the front lines of this pandemic and delivering
service. The transportation sector has been critically impacted
and the COVID-19 pandemic has turned our transportation trade
into a small impact of what it was before. And so, again, I
believe that if we want to get this right moving forward,
having good guidelines, continuing to open the prospects for
not just the movement of people but freight capacity, our
shipping vessels and moving forward so commerce can continue is
really important.
I also want to mention that having the right personal
protective equipment is critical. Ventec Life Systems, a
company based in Bothell, Washington, partnered with the auto
manufacturer, GM, to increase the production of ventilators.
Other auto workers have been producing masks and shields, and
the Boeing company has been producing shields. So these efforts
of frontline workers to help produce the products that we need
to keep safe as the pandemic continues is also something we
should talk about because, as we see those transportation
sectors moving or having people not fully employed, thinking
about what we could do to use their talents in helping us get
this product and security of PPE right in the supply chain is a
national priority.
So we need to do more to continue to reopen. So I look
forward to hearing the discussion and the impacts on these
infrastructure areas today. A lot of the previous legislation
has focused on the aviation transportation sector, and I am
sure today we are going to hear about other infrastructure not
just transportation infrastructure, but broadband, hospitals,
housing, and education should also be on the list.
So again, Mr. Chairman, thank you very much. I look forward
to hearing from our witnesses today.
The Chairman. Thank you, Senator Cantwell.
And we will now move to our witnesses. Your entire
testimony will be included in the record at this point, and we
ask each of you to summarize for no more than 5 minutes. So
thank you very much. And we will begin with Mr. Bozzella.
STATEMENT OF JOHN BOZZELLA, PRESIDENT
AND CHIEF EXECUTIVE OFFICER, ALLIANCE FOR AUTOMOTIVE INNOVATION
Mr. Bozzella. Thank you, Chairman Wicker, Ranking Member
Cantwell, and distinguished members of the Committee. On behalf
of the Alliance for Automotive Innovation, I thank you for the
opportunity to share my perspective on how COVID-19 has
affected the automotive industry and how our industry continues
to respond to this public health crisis.
We are meeting today during a time of great stress within
our country. As we watch what is happening following the deaths
of George Floyd, Ahmaud Arbery, and Breonna Taylor, we need to
reaffirm our commitment to justice and peace, to safe
communities, and to workplaces where we are all valued and
respected. Recent events weigh heavily on us as we enter this
hearing room today.
The workforce of the American auto industry fully
represents the diversity of our country, and for generations,
the auto industry has been a powerful engine for economic
advancement and mobility for Americans of all races, creeds,
and backgrounds. The leaders of our member companies have
spoken out with powerful words reiterating their values and
emphasizing that racism and hate have no place in their
organizations, in our industry, in our society. We stand in
solidarity against racism and advocate for diversity, equity,
and inclusion.
Let me turn now to the topic of today's hearing, COVID-19.
It will take months, if not years, to fully comprehend the toll
the COVID-19 pandemic has inflicted on individuals, families,
communities, the economy, and the Nation. But I am proud of how
the industry and the men and women we employ across the country
have stepped up to this challenge. And they are counting on all
of us to care just as deeply about the future of their
industry.
Following the Great Recession, the auto sector's strength
was key to our national recovery. After 7 years of growth,
nearly 40,000 more Americans work in our industry than when the
recession began. Then the pandemic hit. In just weeks, strong
industry sales in February dropped 33 percent in March and
nearly 50 percent in April. By then and for the first time
since World War II, all major North American production
facilities were idle.
While the gears of motor vehicle manufacturing ground to a
halt, the automotive industry did not stop working. Instead,
our members continued to innovate. They redeployed supply
chains, leveraged purchasing networks, and utilized their
precision manufacturing prowess to make and distribute medical
devices and personal protective equipment to those on the
battle's front lines, as well as their own employees. Mobility
companies deployed automated vehicles to provide contactless
delivery of supplies and meals to individuals and communities
in need. They have contributed and retrofitted vehicles to
provide transportation for health care workers and community
members. The contributions of Auto Innovators member companies
underscore why motor vehicle manufacturing and associated
supply chains are designated critical infrastructure.
Today I shared with the Committee a list of those
contributions in response to a May 12 letter from the Chairman.
I would ask that they be submitted for the record. These are a
few examples of hundreds across the industry, and behind each
are the incredible stories of the men and women, the amazing
ingenuity, and the collective spirit that made them possible.
As we speak, production facilities and suppliers are
responsibly resuming operations, but it is not business as
usual.
Over the past 2 months, our companies have worked closely
with public health authorities, collaborated with industry
partners, and observed lessons learned from around the globe to
develop and implement a broad range of precautions.
As employees adapt to new work environments, the industry
is bringing supply chains back to life. This requires extensive
collaboration among suppliers, the states, and trading partners
such as Mexico and Canada to facilitate a safe and reliable
restart to vehicle production.
Public health issues will remain a challenge moving
forward, and we must be prepared to adapt and evolve to protect
our employees, customers, and suppliers.
There is still a high degree of uncertainty when it comes
to the supply base, consumer confidence, and the overall
economy. Before the public health crisis, analysts were
projecting 2020 sales of almost 17 million units. Current
market projections suggest we will not reach those levels until
2023. Fairly optimistic assumptions of a 14 million unit year
this year could result in industry job losses of nearly 100,000
and result in nearly 2 million jobs lost across the entire
economy. We are working hard to avoid that.
The reality is absorbing COVID-related losses while
investing in future technologies will be a challenge for the
industry. Yet the comeback of the U.S. auto industry from this
crisis can once again drive a broader economic resurgence.
I look forward to working with you as we find ourselves on
the cusp of this transformative moment in the future of the
U.S. auto industry.
[The prepared statement of Mr. Bozzella follows:]
Prepared Statement of John Bozzella, President and CEO,
Alliance for Automotive Innovation
Chairman Wicker, Ranking Member Cantwell and distinguished members
of the Committee: on behalf of the Alliance for Automotive Innovation
(Auto Innovators) and our members, I thank you for the opportunity to
appear today to share my perspective on how COVID-19 has affected the
automotive industry and our members, and how our industry continues to
respond to this public health crisis.
The Alliance for Automotive Innovation was formed at the beginning
of this year to serve as the singular, authoritative, and respected
voice of the automotive industry in the United States. Our 38 members
include auto manufacturers producing nearly 99 percent of the cars and
light trucks sold in the U.S., along with original equipment suppliers,
technology companies, and other automotive-related value chain
partners. In total, our industry employs roughly 10 million Americans,
in addition to those who are employed in the technology and mobility
sectors directly.\1\ We account for nearly 6 percent of our country's
gross domestic product and represent our country's largest
manufacturing sector.\2\
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\1\ Auto Alliance multi-industry contribution analysis: the
economic impact of automotive manufacturing, selling, repairing,
renting, and additional maintenance modeled using IMPLAN economic
analysis data software, 2017 data year.
\2\ Id; Bureau of Economic Analysis, Gross Output by Industry,
https://apps.bea.gov/iTable/iTable.cfm?ReqID=51&step=1, Last accessed
June 1, 2020; Bureau of Labor Statistics, Employment and Output by
Industry, https://www.bls.gov/emp/tables/industry-employment-and-
output.htm, Accessed June 1, 2020
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The mission of Auto Innovators can be distilled to three words:
cleaner, safer, smarter. We work with policymakers, including each of
you on this Committee, to find intelligent solutions to reduce crashes,
improve the environment, and enhance personal transportation. Our
commitment to those core pillars remains steadfast, even during these
abnormal times.
It will take months, if not years, to fully comprehend the toll
this pandemic has inflicted on individuals, families, communities, the
economy and the Nation. But I am proud of how the industry and the men
and women we employ across the country have stepped up to meet this
challenge. And they are counting on all of us to care just as deeply
about the future of their industry.
Auto Innovators was formed on the heels of an unprecedented seven
years of growth.\3\ Even with modest declines in the past two years,
sales still hovered near record levels. This growth emerged from one of
the greatest hits the industry every took: the economic collapse that
was the Great Recession.
---------------------------------------------------------------------------
\3\ U.S. Light Vehicle Sales, 2009-2016, Wards Intelligence
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The auto sector's strength was key to our national recovery. Autos
formed the leading edge of economic growth which rippled throughout the
economy.\4\ The auto sector accounted for nearly a quarter of all
manufacturing jobs added since the recession.\5\ In the four years
following the Great Recession, automakers and parts manufacturers added
nearly 200,000 jobs.\6\ All told, since 2009, auto and parts makers
added more than 342,000 jobs.\7\ Nearly 40,000 more Americans work in
our industry than when the recession began.\8\ The jobs recovery in
motor vehicle manufacturing and parts manufacturing far outpaced our
Nation's recovery in both manufacturing and total jobs.
---------------------------------------------------------------------------
\4\ Jerry Hirsch, ``Auto Industry Has Soared Since 2010, Leading
Economic Recovery,'' Los Angeles Times, Jan. 14, 2014.
\5\ Bureau of Labor Statistics, Automotive Industry: Employment,
Earnings, and Hours, Last Accessed May 8, 2020; Bureau of Labor
Statistics, Current Employment Statistics, Last Accessed May 8, 2020.
\6\ Ibid.
\7\ Ibid.
\8\ Ibid.
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Then the COVID-19 pandemic hit. In just weeks, industry sales went
from above average in February to a 33 percent drop in March and nearly
a 50 percent reduction in April.\9\ These depressed levels were
mitigated, in part, by manufacturer incentives on new vehicle
purchases.\10\ By April--for the first time since World War II--all
major North American production facilities were idled. Auto dealers
were unable to accept orders they had already placed with OEMs. Rental
fleets were parked due to the precipitous drop in travel and tourism.
Nationwide, vehicle use dropped dramatically as federal, state, and
local governments imposed a range of restrictions focused on reducing
the spread of the coronavirus.
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\9\ Wards Intelligence, U.S. Light Vehicle Sales, March 2020, April
1, 2020; Wards Intelligence, U.S. Light Vehicle Sales, April 2020, May
1, 2020.
\10\ J.D. Power, Presentation, COVID-19: J.D. Power Auto Industry
Impact Report, May 13, 2020.
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
While the gears of motor vehicle manufacturing ground to a halt,
the automotive industry did not stop working. Instead, our members
continued to innovate. They put their decades of experience in
precision manufacturing, supply networks, logistics, purchasing, and
innovation to use in combatting the coronavirus.
---------------------------------------------------------------------------
\11\ J.D. Power, Presentation, COVID-19: J.D. Power Auto Industry
Impact Report, May 28, 2020.
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With lightning speed, automakers and suppliers developed new
partnerships in the healthcare community and retooled manufacturing
facilities to aid in the response. Within weeks, companies were
dedicating facilities and people to making ventilators and personal
protective equipment for those on the battle's front lines, as well as
their own employees. They redeployed supply chains, leveraged
purchasing networks and utilized their manufacturing prowess to make
equipment at break-neck speed. Similarly, technology companies and new
entrants to the mobility ecosystem deployed automated vehicles to
provide contactless delivery of supplies and meals to individuals and
communities in need.
In addition to making complex and specialized medical equipment,
our member companies have donated and delivered millions of meals to
those in need. They have contributed and retrofitted vehicles to
provide transportation for health care workers and community members.
They have assisted customers with flexible payment options on existing
loans, as well as preferential financing terms for new vehicle
purchases.
The contributions of Auto Innovators member companies remind us all
why this industry is such a national asset. It was not just a handful
of participants or large corporations stepping forward--it was the
entire value chain, working together, to help the national response.
Our partners in the supplier community, from the tier ones to the mom-
and-pops, have also stepped forward and been tremendous partners
throughout this crisis. Likewise, our auto dealership partners
nationwide developed new and creative ways to provide sales and service
to address Americans' transportation needs. In short, the automotive
industry not only answered the Nation's call but also demonstrated the
innovative spirit and resilient commitment that will help it survive
and once again thrive.
While our members focused on the health and safety of their
employees and supporting the national response, Auto Innovators devoted
our attention to supporting those efforts, as well as the industry's
long-term health. We quickly formed a high-level industry task force to
coordinate information sharing, identify emerging challenges, and
collaborate with industry and government partners. This included a
weekly ``Read the Meter'' summarizing key statistics and metrics to
track the state of the industry (Attachment 1). We supported Federal
and congressional efforts to provide market liquidity that has been
tremendously important for individuals and businesses across the
country. We worked closely with the Cybersecurity and Infrastructure
Security Agency (CISA), to ensure the country's state and local
governments had clear and consistent guidance regarding the essential
nature of motor vehicle manufacturing and associated supply chains. We
are continuing to work with the Department of Commerce, Department of
State and countless others across the Federal government to support
collaboration and engagement with regional trading partners. In
addition, we partnered with the Motor and Equipment Manufacturers
Association/Original Equipment Suppliers Association to develop health
and safety guidance for suppliers throughout the value chain. These
efforts serve one goal--the auto industry's safe and coordinated
restart as part of our Nation's economic recovery.
As we speak, that process is underway. Across the country,
production facilities and suppliers are responsibly resuming
operations. But it is not business as usual.
Employees are returning to a very different work environment. Over
the past two months, our companies have worked closely with public
health authorities, collaborated with industry partners, and observed
lessons learned from around the globe to develop and implement a broad
range of precautions. This includes, but is not necessarily limited to,
a combination of: temperature scans, safety goggles, face shields and
masks, physical changes to the work environment, hand sanitizers and
lotions, more time between shifts, and proper distancing.
As employees adapt to new work environments, the industry is
bringing supply chains back to life. With more than 10,000 components
in an average vehicle, this requires extensive collaboration among
suppliers, the states, and trading partners such as Mexico and Canada,
to facilitate a safe and reliable restart of motor vehicle production.
This will not happen overnight as the entire value chain implements and
socializes new health and safety guidelines for their operations. But
to be clear, we recognize that the public health issues will remain a
challenge moving forward.
Even with the re-start of our industry, we know it will take time
to recover from COVID-19's impacts. Before the public health crisis,
analysts were projecting 2020 sales of almost 17 million units. Current
market projections estimate that 2019 sales level might not return
until 2023.\12\
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\12\ Haig Stoddard, Wards Intelligence, U.S. Sales Outlook
Brightens Slightly for 2020-2021 But Still a Lot of Uncertainty as to
How the Recovery Ultimately Plays Out, May 18, 2020; IHS Markit, E-
mail, Markit Monthly Automotive Update--May 2020, Rec'd May 14, 2020;
ALG, Press Release, ALG Provides Third Revision of 2020 New Vehicle
Sales Forecast Scenarios Based on Latest Impact of COVID-19, April 20,
2020
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Today, the projections anticipate a roughly 25 percent annual sales
drop in light-duty vehicles. Even under the more optimistic scenarios--
a drop in sales to about 14 million units--the industry's job losses
could total nearly 100,000 and result in nearly 2 million jobs lost
across the entire economy.\13\
---------------------------------------------------------------------------
\13\ Center for Automotive Research, Economic Study of Baseline
Loss at 14.3 Million SAAR (Forthcoming).
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
The economic reality of the combined hit to auto production and
sales is, in some respects, simple. Although restart efforts are
underway, there is still a high degree of uncertainty when it comes to
supply chain challenges, consumer confidence and overall economic
signals. As automakers, suppliers and others absorb COVID-related
losses, the industry will have less capital to invest in future
technology development. In this highly competitive, capital-intensive
industry, policies that support market stability will become even more
critical as we take on the simultaneous challenge of recovering from
the pandemic and sustaining investments in the innovations that will
define the future of personal mobility. As evidenced by our response to
this public health crisis, the auto industry is up to the challenge--
but we cannot do it alone. Maintaining U.S. leadership in automotive
innovation requires a shared commitment from both industry and our
partners in government.
---------------------------------------------------------------------------
\14\ Ibid.
---------------------------------------------------------------------------
Despite various factors outside our control, one thing is certain:
the auto industry is prepared and in position to make an essential
contribution to all aspects of our national recovery from this
pandemic. Motor vehicle manufacturing and associated supply chains are
Critical Infrastructure for a reason--this industry has proven its
ability to fuel our national economy. We will continue our part to
protect public health and build future prosperity.
Today, we find ourselves on the cusp of a transformative moment in
the future of the U.S. automotive industry. We must safely restart the
industry amid significant economic uncertainty, while continuing to
invest in new propulsion systems that reduce emissions and automated
and connected vehicle technologies that save lives on America's
roadways. It will require creativity and commitment, including from
Congress and this committee, for the U.S. to retain its important
leadership role when it comes to automotive innovation.
On behalf of this great industry, I look forward to continue
working with this Committee to harness the innovative spirit of our
members--and the entire auto ecosystem--to emerge from this public
health crisis stronger, more resilient and an engine of U.S. leadership
and prosperity, both now and in the future.
______
Attachment 1: ``Reading the Meter'' (May 28, 2020) Alliance for
Automotive Innovation
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
The Chairman. Thank you very much, Mr. Bozzella. You
mentioned in your remarks an additional document which you
asked to be included in the record. If it can simply be
attached to your written statement, without objection, it will
be admitted into the record at this point.
Mr. Bozzella. Thank you.
The Chairman. And now testifying remotely is Mr. Randy
Guillot. Chairman Guillot, you are welcome. Can you hear us?
Mr. Guillot. Yes, sir, I can. Thank you.
The Chairman. Welcome.
STATEMENT OF RANDY GUILLOT, CHAIRMAN OF THE BOARD, AMERICAN
TRUCKING ASSOCIATIONS
Mr. Guillot. Thank you, Chairman Wicker, Ranking Member
Cantwell, and members of the Committee. My name is Randy
Guillot, and I am the President of Triple G Express and
Southeastern Motor Freight, motor carriers based in Jefferson,
Louisiana. It is my honor to speak with you today as Chairman
of the American Trucking Associations.
For 87 years, ATA remains the largest national trade
organization representing the trucking industry. With
affiliates in all 50 states, our membership encompasses more
than 34,000 motor carriers and suppliers representing every
segment of the industry.
Since the onset of the COVID-19 pandemic, the trucking
industry has been thrust into the forefront of our national
consciousness. While most activity ground to a halt across the
country, America's 3.5 million professional truck drivers kept
moving. These heroes continue serving on the front lines,
ensuring everyone has the goods they need to get through these
challenging times.
We hear the term ``essential'' more frequently of late as
America wakes up to the gravity of what ``essential'' really
means. Truckers are the difference between a fully stocked
grocery store and one lined with empty shelves. They are why
doctors and nurses have PPE to protect themselves. They are how
test kits get to hotspots for local officials to use to fight
the virus' spread. The resilience of our supply chain rests on
the courage and dedication of these heroes. Perhaps the
President said it best when he recently proclaimed from the
south lawn of the White House, thank God for truckers.
But beyond such recognition, lawmakers would be wise to
look at our industry for answers. There are several reasons
why.
First, as the crisis has illustrated, the health of our
Nation and the viability of our entire economy rests on the
strength of the trucking industry. When our industry lacks the
capital resources or clearance it needs to get from point A to
point B, the impact is felt immediately far and wide not only
by us but by the people we serve, our customers, grocery
stores, pharmacies, hospitals, first responders, farmers,
manufacturers, business owners, and the consumer, the American
people, just to name a few.
Second, as we have demonstrated over the last few months,
truckers by nature are industrious and forward-looking. We know
how to get the job done. We do not complain about problems. We
propose concrete solutions. We do not point to obstacles. We
work together to find and clear the way forward.
As our country turns from crisis to recovery, our industry
is ready to lead. With that in mind, here are three policy
points for Congress and this committee that I would like to
emphasize.
Number one, invest in infrastructure. It will create jobs
and advance our recovery while improving our nation's crumbling
roads and highway safety. Make no mistake. This can and should
be fully paid for. We have a plan to generate hundreds of
billions of dollars in new revenues without adding a dime to
the Federal deficit.
Number two, provide incentives to trucking companies to
invest in newer, cleaner, and safer trucks and equipment. A
temporary holiday from the Federal excise tax through calendar
year 2021 and other proposals outlined in my testimony would
deliver a direct boost to the economy, bringing certainty to
manufacturing jobs and improve road safety and the industry's
environmental impact.
Number three, provide reasonable protections against
excessive litigation. Trial lawyers will not lead this economic
recovery. They do not create jobs. They destroy them. The
trucking industry, however, will create jobs, one in 18 in the
U.S. today. We will continue delivering essential goods and
supplies to help weather this health crisis, and trucking will
lead the way to recovery.
Thank you for working with us to ensure that America's
trucking industry has the support it needs to serve our country
through these tough times and into a better tomorrow.
I look forward to answering any questions. Thank you.
[The prepared statement of Mr. Guillot follows:]
Prepared Statement of Randy Guillot, Chairman, American Trucking
Associations and President, Triple G Express, Inc. and Southeastern
Motor Freight
Chairman Wicker, Ranking Member Cantwell, and members of the
distinguished Committee, thank you for providing the American Trucking
Associations (ATA) with the opportunity to testify before you today. My
name is Randy Guillot, and I currently serve as the 75th Chairman of
the ATA. And, on behalf of the trucking industry, including the
approximately 7.4 million men and women employed by trucking in the
United States, I am grateful for the opportunity to share how these
heroes have risen and responded to the COVID-19 pandemic--and how
they're positioned to now lead our Nation's economic recovery.
As you know, ATA is an 87-year old federation and the largest
national trade organization representing the trucking industry, with
affiliates in all 50 states. ATA's membership encompasses over 34,000
motor carriers and suppliers directly and through affiliated
organizations. Our association represents every sector of the industry,
from Less-than-Truckload to Truckload, agriculture and livestock to
auto haulers, and from the large motor carriers to the owner-operator
and mom-and-pop one truck operations. In fact, 80 percent of our
membership is comprised of small-sized carriers, whereas only 2 percent
of our membership would be considered large-sized carriers.
Outside of my service as Chairman of the ATA, I am the President of
Triple G Express, Inc. and Southeastern Motor Freight, Inc., with more
than 33 years of experience working in the trucking industry. These two
family-owned-and-operated companies, which date back to 1945 and 1985
respectively, haul mostly intermodal containers primarily servicing the
Port of New Orleans, but also operate short-haul dry-vans. Throughout
my career, I have worked in all aspects of the business, ranging from
sales and driving to dock work and safety.
Before detailing the content of my testimony, I would like to thank
and recognize this Committee's leadership and unwavering support in
ensuring that America's trucking industry has the Federal support it
needs to serve our country through the COVID-19 pandemic. Your outreach
and partnership are appreciated and valued by the millions of patriotic
men and women who work in trucking.
Since the onset of the COVID-19 pandemic, most economic, social,
and cultural activity in our country has ground to a halt. But one
group hasn't stopped: truckers. America's 3.5 million truck drivers--
and the countless men and women who support them, such as technicians,
dispatchers and truckstop operators--have kept our country running
despite the enormous challenges caused by the pandemic.
Truckers have been the difference between a fully-stocked grocery
store and one lined with empty shelves. They're why doctors and nurses
have PPE to protect themselves while treating the sick. They're why
test kits arrive at hot-spots for use by local officials to mitigate
the virus' spread. Perhaps the President of the United States said it
best when he recently proclaimed from the South Lawn of the White
House: ``Thank God for Truckers.''
Our industry is proud to do its part to help fellow Americans get
through this crisis. What we need--is for government officials at all
levels to permit them to do so without unnecessary delay or
interruption. As the ``essential critical infrastructure worker''
designation suggests, it's essential that trucks keep rolling through
whatever tough and necessary measures are taken to protect public
health.
It's also true that the trucking industry is struggling to cope
with serious economic challenges precipitated by the pandemic and
public health response efforts. Some trucking companies are busy, like
those primarily hauling essential groceries, home delivery, e-commerce
and medical supplies. However, many industry sectors have slowed or
shuttered for the duration of the pandemic, which means that companies
hauling fuel for cars and airlines, food supplies for restaurants,
steel and cars for the auto manufacturers, and grain and commodities
for agricultural exports have fewer loads to transport.
Safely reopening our economy based on sound science and data will
be the ultimate resolution to our economic challenges, and we support
the meticulous efforts of public officials to get our Nation back to
work, balancing safety with the economic and social needs of modern
life. And when the economy begins to turn back on, the first step will
be repositioning and delivering supplies that fuel commerce and
communities, which means the trucking industry will play a critical
role as we turn toward recovery. Trucking holds the keys to restarting
America's economic engine, and as an industry, we are prepared to meet
that challenge.
For the purpose of this hearing, I will focus my testimony on the
impact of COVID-19 on the trucking industry, and the steps that this
Committee and Congress should consider to ensure that the trucking
industry is well positioned to lead the way from response to recovery.
Because that's what truckers do--despite the numerous obstacles in our
path and the risks posed by the public health crisis--we keep rolling.
ATA looks forward to continued, diligent work with this Committee,
and each of the industries testifying before you today. We believe that
together we can achieve the legislative and regulatory framework that
will best facilitate uninterrupted COVID-19 response and relief
efforts, as well as future recovery measures. Ensuring that the
essential critical infrastructure workforces have the resources and
flexibility to continue to supply the Nation with necessary goods and
supplies throughout this health crisis and into the recovery phase will
help define our country's resiliency and ability to overcome the
pandemic.
1. The Impacts of COVID-19 on the Trucking Industry:
The Economic and Supply Chain Impacts of COVID-19 on the
Trucking Industry:
The impact of COVID-19 on the trucking industry has been
substantial as freight demand has declined significantly since the
outbreak of the pandemic. After an initial surge for groceries and
other consumer staples to big-box retailers, freight levels have
generally fallen since. For example, the spot market, which is where
overflow freight goes when shippers have more loads than their contract
carriers can handle, fell 54 percent in April on a year-over-year
basis.\1\ ATA recently reported that its for-hire truck tonnage index,
which is dominated by contract freight, not spot market, fell 12.2
percent in April from March. This was the largest month-to-month
decline since April 1994.\2\ In a recent COVID-19 survey conducted by
ATA, 85 percent of nearly 500 fleets said that truck freight levels
were somewhat or much lower than would be expected during this time of
year. In fact, 62 percent said freight was ``much'' lower.
---------------------------------------------------------------------------
\1\ DAT.com
\2\ https://www.trucking.org/news-insights/ata-truck-tonnage-index-
plunged-122-april
---------------------------------------------------------------------------
This big drop in freight has many implications for trucking, which
is a high-cash flow, low-profit industry. One of the major supply chain
impacts we see is how less freight throws carriers' networks off
balance. For example, in normal times, if a carrier has a customer with
freight from Indianapolis to Savannah, GA, the carrier will find a
customer(s) with freight from or near Savannah back to Indiana. But
under these current circumstances, the carrier might still have freight
to Savannah--but no return freight for the backhaul. Thus, the carrier
is forced to drive long, ``deadhead'' miles or take a load in the spot
market for well below sustainable rates. Either way, this situation
puts added financial pressures on fleets.
In ATA's COVID-19 survey, 32 percent of responding fleets, which
equates to roughly 200 carriers, said they were forced to lay off or
furlough drivers due to the current coronavirus economic situation. Our
data shows that this group released a total of 6,364 drivers.
Additionally, data from the Department of Labor showed that payrolls
for the for-hire trucking industry fell by 88,000 in April. ATA's
Economics Department estimates that 65,000 of those were truck drivers.
Outside of these challenges to freight networks, the transportation
portion of supply chains seem to be faring relatively well. In the ATA-
conducted COVID-19 survey, only 18 percent of the nearly 600 responding
fleets indicated that they had at least one driver infected with the
virus. Truck drivers, due to their line of work, are accustomed to
social distancing during normal times. While we continue to cautiously
assess, at this point we do not foresee any supply-chain breakdowns
because of illness among trucking companies.
Moving forward, we expect the trucking industry will continue to
deliver freight as it has been under COVID-19, and that supply chains
will hold strong, thanks to the fortitude of the trucking workforce.
However, should the steep economic downturn continue its slide into
June and July--when funds from the Paycheck Protection Program (PPP)
run out for many smaller fleets--we could see an increasing number of
motor carriers forced to close down. This would noticeably impact
supply chains as the economy labors to restart. It could create a
situation where, at least temporarily, the number of loads outnumbers
the number of drivers and equipment available to haul them.
The Operational Impacts of COVID-19 on the Trucking Industry:
Since the onset of the COVID-19 pandemic, ATA's member companies
have been forced to react to many state and local restrictions, which,
while well-intentioned, have negatively impacted fleets' ability to
operate efficiently. Specifically, the closure of state-run facilities,
such as rest areas and service plazas, had a serious impact on the
health and wellness of truck drivers transporting freight in response
to COVID-19. For example, in Pennsylvania, both rest areas and service
plazas closed across the entire state, just days into the pandemic.
Truck drivers were suddenly left with few options when searching for a
place to park and rest, use restroom facilities or find something to
eat--all while delivering critical goods that keep our communities safe
and fed. Truck parking options on a normal day are scarce, and the
closing of these state-run facilities at a time of heightened urgency
for freight deliveries was a devastating blow. Shortly after the sudden
closing of these facilities, ATA educated Pennsylvania policymakers on
the serious impact of their decision. The result was the reopening of a
limited number of rest areas and service centers across the state.
Like other critical infrastructure workers, ATA's member companies
have struggled to obtain non-medical grade personal protective
equipment (PPE), so that their drivers can reduce their exposure to
COVID-19 while ensuring the supply chain remains intact. Several states
have required ``face coverings'' when in public, and truck drivers are
not exempt from these requirements. In light of these requirements, ATA
was able to obtain over 100,000 face coverings and distributed those
masks to various trucking companies and trucking associations
throughout the country.
Additionally, the ability for drivers to refill their personal hand
sanitizer bottles was critical. Through a partnership with Protective
Insurance and a custom distillery, Hotel Tango of Indianapolis, 550
gallons of hand sanitizer was distributed to 10 different truck stop
and truck companies throughout the country. The hand sanitizer was
transported via ATA member companies to these various locations. ATA is
currently in the process of procuring additional hand sanitizer to be
distributed throughout the country. By distributing these supplies to
several public facilities, all truck drivers have access to these
supplies.
The Trucking Industry's Collaborations with the Department of
Transportation (DOT) in Responding to the Pandemic:
Since the onset of COVID-19, ATA collaborated closely with the U.S.
DOT/FMCSA to ensure drivers providing direct relief in response to
COVID-19 were afforded the appropriate regulatory relief. The prompt
response by U.S. DOT/FMCSA in issuing an emergency declaration that
waived Hours of Service (HOS) and other regulations ensured that
grocery store shelves remained stocked during the panic buying that
ensued during the early days of COVID-19. The collaboration between
U.S. DOT/FMCSA and the trucking industry has been unprecedented, with
numerous stakeholder conference calls, guidance documents, and
countless correspondence when specific situations arose.
ATA appreciates and supports the steps agencies have taken by
issuing emergency waivers and declarations. ATA urges caution, however,
that any waivers or exemptions are limited in scope and duration, and
only apply to those operations providing direct emergency support. As
many of these waivers expire in the coming weeks, we encourage Federal
agencies to continue industry outreach to ensure that drivers--
throughout the country--are able to comply with existing regulations,
such as renewing a commercial driver's license or medical certificate.
While the country takes steps to reopen, our motor carrier members are
concerned that in some locations, the ability to comply with regulatory
requirements may be hindered due to state and local restrictions.
Continued outreach between U.S. DOT/FMCSA and our industry will ensure
a smooth transition.
Just as U.S. DOT/FMCSA has acted swiftly to provide regulatory
relief during the COVID-19 pandemic, we also applaud their efforts in
expeditiously publishing an HOS final rule that will provide targeted
flexibility for our industry. As the trucking industry adjusted to the
December 2017 implementation of Electronic Logging Devices (ELDs),
concerns were raised by varying segments of the industry regarding the
need for greater flexibility in commercial motor vehicle operators'
HOS. While HOS regulations are designed to provide the framework for
the safe and efficient movement of goods, ELD implementation made clear
the need to provide drivers an improved ability to adjust to changing
road and weather conditions, congestion and sensitive truck loads.
As such, ATA applauds FMCSA's recent publication of an HOS Final
Rule, which, in various ways, will give drivers the flexibility
necessary to safely and efficiently manage operations. This final rule
includes flexibilities to the existing HOS regulations that have been
in place for several years, including, expansion of the short-haul
exemption, changes to the adverse driving conditions exception, changes
to the 30-minute rest break requirement, and greater flexibility for
how a driver splits their off-duty time in a sleeper berth. ATA filed
public comments regarding each of these provisions, which can be
located on the public docket.\3\ ATA thanks DOT and FMCSA for their
thoughtful and thorough rulemaking effort, which included significant
stakeholder engagement, to produce a final rule based on science, data
and safety. ATA looks forward to the September effective date for this
final rule.
---------------------------------------------------------------------------
\3\ https://www.regulations.gov/document?D=FMCSA-2018-0248-8025.
---------------------------------------------------------------------------
With regard to the additional waivers issued by FMCSA related to
Commercial Learners Permits and Third Party Testing, we encourage the
Agency to consider pursuing permanency of these waivers, which could
assist in easing the current delays associated with the testing of
drivers who wish to obtain their Commercial Driver's License (CDL).
These delays existed prior to COVID-19 and have only been exacerbated
by this pandemic. ATA anticipates that the existing backlog of testing
appointments will steadily increase in the future and encourages FMCSA
to harmonize state licensing procedures, including, for example, state
of domicile requirements and Third-Party Testing. FMCSA has mandated
that an individual's state of domicile must accept the results of a CDL
skills test that was administered out-of-state; however, the rule does
not require the state of domicile to also accept the results of an out-
of-state knowledge test. As a result, driver candidates who obtain
training out-of-state are required to travel back to their state of
domicile to obtain their credentials, creating an unnecessary burden.
It has become all the more important to allow trainees to test, train,
and receive their relevant credentials--be it a CLP or a CDL--without
having to travel back and forth to their state of domicile.
2. Trucking Industry Priorities for COVID-19 Relief and Response
Efforts:
Limited Liability Protection Through COVID-19 Relief and
Recovery Efforts:
Motor carriers and commercial drivers are crucial to ensuring that
the Nation remains supplied with essential goods--from food to medical
supplies--during the public health crisis. Given the unprecedented
nature of this crisis, motor carriers and commercial drivers are, in
the course of that essential work, exposing themselves to enhanced
risks that are not yet fully understood. While the safety of our
drivers, our customers, and those we share the highway with is always
paramount for the trucking industry, the fact remains that the risks
associated with keeping the Nation supplied during the crisis cannot be
completely mitigated. In order to ensure motor carriers are not
punished for stepping up in the face of the national emergency, and are
not dis-incentivized from doing so, Congress should impose reasonable
limitations on the liability of motor carriers for these enhanced,
crisis-related risks that they cannot fully mitigate. Such protections
should be temporary and tailored to the scope of the pandemic response
and recovery, and preserve recourse for those harmed by truly bad
actors who engage in willful misconduct.
Specifically, Congress should provide motor carriers with
protections like those it conferred on certain health care
professionals in the CARES Act, where it ensured that they would not be
held liable for good-faith efforts to provide care during the crisis.
Similarly, Congress should provide that motor carriers will not be held
liable if--despite reasonable safety precautions consistent with
Federal guidelines, and absent willful misconduct or gross negligence--
they are alleged to have exposed customers or employees to the
coronavirus in the course of serving the Nation's supply needs during
the crisis.
In addition, as we recognize the central role the trucking industry
is playing in seeing the Nation through this crisis, I want to make
this committee aware of a longer-term problem that has threatened the
industry's ongoing ability to cost-effectively move the vast majority
of the Nation's freight. Motor carriers in recent years have become
favored targets of the plaintiffs' bar and third-party litigation
financing companies, who treat highway accident litigation as a
potential jackpot rather than a means of assessing fault and fairly
compensating victims. That trend, in turn, has led to skyrocketing
insurance rates that risk putting many carriers out of business, and by
raising the cost of shipping takes money out of the pockets of American
consumers only to line those of the unscrupulous trial lawyers who seek
to profiteer of the trucking industry's efforts to keep the supply
chain running.
Enact S. 3728, the Critical Infrastructure Employee Protection
Act:
The transportation systems sector is one of the 16 critical
infrastructure sectors whose assets, systems, and networks are
considered so vital that their incapacitation would have a debilitating
effect on security, economic stability, public health, and safety.\4\
Accordingly, functioning and stable critical infrastructure is
imperative as our Nation responds to the COVID-19 public health
emergency. The Cybersecurity and Infrastructure Security Agency (CISA)
identified trucking in its list of essential critical infrastructure
workers \5\ because our industry helps to maintain the services and
functions Americans depend on daily to operate resiliently during the
COVID-19 pandemic response.
---------------------------------------------------------------------------
\4\ Cybersecurity and Infrastructure Security Agency, ``Critical
Infrastructure Sectors,'' https://www.cisa.gov/critical-infrastructure-
sectors, 24 March 2020.
\5\ Cybersecurity and Infrastructure Security Agency, ``Advisory
Memorandum on Identification of Essential Critical Infrastructure
Workers During COVID-19 Response,'' https://www.cisa
.gov/sites/default/files/publications/
Version_3.1_CISA_Guidance_on_Essential_Critical_Infra
structure_Workers.pdf, 319 May 2020.
---------------------------------------------------------------------------
The trucking industry is proud to serve in this role, and will
continue to deliver essential goods and supplies to communities so that
our Nation can confront and defeat this pandemic. We sincerely
appreciate the work of this Committee to ensure that the trucking
industry, and other essential critical infrastructure workers in the
transportation systems sector, have the resources they need to maintain
their essential operations. Specifically, we support the Committee's
work on S.3728, the Critical Infrastructure Employee Protection Act.
Your thoughtful and timely legislation would require the Secretary of
Transportation to support the efforts of State and local governments to
provide essential critical infrastructure workers with prioritized
access to testing and non-medical grade equipment. Ultimately, this
type of investment in our frontline heroes is an investment in our
Nation's long-term well-being because essential critical infrastructure
workers are leading our Nation's response and recovery efforts on the
ground. Keeping our frontline transportation workers healthy is how we
ensure that grocery stores remain stocked, medical supplies remain
available in urban and rural communities, and how we maintain critical
infrastructure viability.
Accordingly, we applaud the leadership of Chairman Wicker, Ranking
Member Cantwell, and Senators Young, Sullivan and Blunt in championing
the Critical Infrastructure Employee Protection Act, and look forward
to working with the Committee, as well several of the witnesses before
you today, to see the bill through to enactment.
Provide Detention and Demurrage Fee Relief & Chassis Choice
for the Intermodal Trucking Community:
Despite the economic slowdown caused by the public health crisis,
intermodal motor carriers continue to bring products and materials to
and from ports around the country. These efforts help deliver critical
supplies to frontline health care workers, as well as the myriad
materials and products needed to drive nearly every aspect of the
country's economic supply chain.
Unfortunately, the current coronavirus outbreak has impacted access
to shipping containers, leading to delays outside the control of motor
carriers. These trucking companies have been assessed demurrage and
detention fees unfairly by ocean carriers and marine terminals in the
past, and with the current health crisis affecting operations at ports
around the nation, detention and demurrage fees should be prohibited
until more normal operations of port and intermodal freight return.
Under current practice, a fee is typically charged if a motor
carrier is responsible for a delay of intermodal containers being
picked up or delivered. If the motor carrier is the cause of such a
delay, this penalty might make sense, since the global supply chain
depends on the movement and repositioning of these containers. In many
cases, delays result from other factors--such as port or ocean line
delays, and the trucking companies are charged for inefficiencies they
have no control over. While these practices are unfair in normal times,
they are debilitating during this pandemic, which has caused historic
disruptions in ocean shipping and port operations. Temporarily
prohibitions on these charges against motor carriers will protect a
vital American supply chain link and assist the recovery from our
economic challenges.
Such a waiver or prohibition will help reduce confusion and
disputes between intermodal carriers and the ocean lines, and expedite
freight movement at ports and container terminals, thereby allowing
critical products and materials to move more quickly during this time
of national need.
Recently, the Federal Maritime Commission (FMC) finalized an
interpretive rule on Detention and Demurrage. It will take effect after
it is published in the Federal Reserve, which we hope will be soon.
``Under the new interpretive rule, the commission will consider the
extent to which detention and demurrage charges and policies serve
their primary purpose of incentivizing the movement of cargo and
promoting freight fluidity,'' the FMC said recently.
The detrimental impacts of COVID-19 makes the FMC interpretive rule
on detention and demurrage very timely, because one of the main
functions of the rule is to determine if certain detention and
demurrage fees are reasonable or support freight fluidity. If they do
neither of these, then no fee should apply. It should also bring
clarification as to how the ocean carriers and marine terminals provide
notice to truckers when their cargo is available for retrieval, clearly
defined demurrage and detention policies, and dispute resolution. This
increased clarity will help resolve disputes when they arise, and it is
through this reasonableness aspect laid out in the interpretive rule
that the FMC will be able to better evaluate these disputes when they
arise, which they will in different situations around the Nation.
Therefore, we encourage the Committee to oversee the implementation
of the FMC's interpretive rule, to ensure that motor carriers are not
being improperly charged detention and demurrage fees, particularly as
a result of impacts from the pandemic. Additionally, should this
interpretive rule delay in implementation, we encourage the Committee
to provide intermodal motor carriers with detention and demurrage fee
relief during the response to and recovery from the pandemic.
A further issue I'd like to raise with the Committee is chassis
availability or chassis choice, which has become a much bigger problem
at many of our Nation's ports and terminals. If intermodal motor
carriers are unable to get the chassis they need to move containers to
and from ports or if the process for obtaining a chassis is
inefficient, then freight fluidity will be affected. For over 10 years,
although the ocean carriers have sold their chassis, they still control
chassis rules at intermodal facilities to deny trucking companies
choice when leasing this essential equipment. Foreign-owned ship lines
require U.S. motor carriers to only lease chassis from the steamship
line designated chassis providers at a daily rate that is more than
double the cost of providing a chassis, which increases costs for the
motor carriers. At the same time, steamship lines have negotiated with
their designated chassis provider for a daily chassis price when the
steamship line pays the bill that is half the cost of providing a
chassis. This rebate practice must stop.
The increased cost on the motor carrier is punitive and will lead
to increased costs for the consumer. The lack of chassis choice
prevents the motor carriers from making decisions on the quality of the
equipment. It is important that chassis choice is available at ports
and terminals throughout the country.
3. Trucking Industry Priorities for COVID-19 Recovery Legislation:
Create Jobs and Stimulate the Economy While Improving our
Nation's Infrastructure:
The COVID-19 pandemic has significantly reduced travel, driving
down fuel use and with it, fuel tax collection. In addition, truck and
trailer purchases have dropped considerably, reducing the revenue
collected through the Federal excise tax on equipment.\6\ For the week
of May 16-22, personal travel was down a seasonally adjusted 30 percent
compared with normal travel, while long-haul truck travel declined 5
percent and local trucking fleet travel was down 6 percent.\7\ These
declines have resulted in similar reductions in fuel consumption, with
gasoline purchases down by approximately 30 percent in May compared
with the same period in 2019.\8\ While the likely effects on
transportation budgets are unclear, ATA estimates that Federal and
state user fee revenue could be depleted by at least $32 billion over
the next year. This does not include losses to states that rely on
retail sales tax revenue for their transportation budgets. This loss of
revenue will force cancellation of critical transportation projects,
putting more than 400,000 people out of work. Furthermore, it will
accelerate the insolvency of the Federal Highway Trust Fund (HTF),
which was previously projected by the Congressional Budget Office to
begin to go into the red by FY2021.
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\6\ Gilroy, Roger, April Class 8 Orders Reach 25-Year Low,
Transport Topics, May 5, 2020.
Gilroy, Roger, US Trailer Orders Tumble to All-Time Low in April,
Transport Topics, May 25, 2020.
\7\ INRIX U.S. National Traffic Volume Synopsis Issue #10 (May 16-
May 22, 2020)
\8\ Weekly U.S. Product Supplied of Finished Motor Gasoline
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ATA supports a short-term infusion of revenue that will allow
states to avoid furloughs and to maintain capital investment schedules,
saving thousands of jobs. We also urge Congress to avoid delays in
reauthorization of the FAST Act, and ensure that the surface
transportation program is provided with sufficient long-term revenue to
address critical infrastructure deficiencies.
Even before the current crisis, a severe lack of investment has
caused the road system to rapidly deteriorate, costing the average
motorist nearly $1,600 a year in higher maintenance and congestion
expenses.\9\ Highway congestion also adds nearly $75 billion to the
cost of freight transportation each year.\10\ In 2016, truck drivers
sat in traffic for nearly 1.2 billion hours, equivalent to more than
425,000 drivers sitting idle for a year.\11\ This caused the trucking
industry to consume an additional 6.87 billion gallons of fuel in 2016,
representing approximately 13 percent of the industry's fuel
consumption, and resulting in 67.3 million metric tons of excess carbon
dioxide (CO2) emissions.\12\
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\9\ Bumpy Road Ahead: America's Roughest Rides and Strategies to
make our Roads Smoother, The Road Information Program, Oct. 2018; 2015
Urban Mobility Scorecard. Texas Transportation Institute, Aug. 2015.
\10\ Cost of Congestion to the Trucking Industry: 2018 Update.
American Transportation Research Institute, Oct. 2018.
\11\ Ibid.
\12\ Fixing the 12 percent Case Study: Atlanta, GA. American
Transportation Research Institute, Feb. 2019.
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The current situation represents the greatest opportunity in
decades to make great strides toward addressing these challenges. With
traffic down (allowing for more lane closures), unemployment at
historic highs, and interest rates and fuel prices at historic lows,
now is the perfect time to accelerate transportation projects, not
starve them of revenue.
It is challenging to spot silver linings amid a global pandemic,
but if there is something working Americans can be grateful for during
a lockdown, it's a reprieve from the wretched traffic that's plagued
daily commutes for years. But what happens when life returns to a new
normal? America's sagging roads and cracking bridges will still be
there, causing the bottlenecks and accidents that are the signature of
everyday gridlock. Whatever the future holds, it is clear we can no
longer rely on yesterday's roads to get us there. What if there was a
smart way forward that finds common ground? What if we could jumpstart
our economy, putting hundreds of thousands of Americans back to work in
good-paying, private sector jobs--without adding another dime to the
deficit? What if we could capitalize on this rare moment in the global
oil market--paying dividends to working Americans for decades to come?
There is. And we can. All that's needed now is the political courage to
get there.
President Trump and Speaker Pelosi have made rebuilding roads and
bridges a top priority. Leader McConnell has insisted that any
infrastructure package be fully paid for. Truckers agree with all
three. Where pundits see conflict, we see alignment--and the way
forward. In one package, infrastructure offers a singular solution to
the tangled web of policy challenges woven by COVID-19. It would
generate powerful economic stimulus in the near term, providing
hundreds of thousands of good-paying, private sector jobs. It would lay
a strong foundation for long-term economic growth, strengthening our
supply chain and securing America's preeminent position in the global
economy. Most importantly, it can be done responsibly--and fully paid
for--without adding a dime to the Federal deficit.
While the COVID-19 crisis will pass, one of its lasting legacies
has already been written. The U.S. has added $3 trillion onto our
Nation's credit card bill in a matter of weeks. These actions were
necessary to prevent a catastrophic economic collapse, but their steep
cost will reverberate for many years to come. America's total national
debt now tops $25 trillion--another crisis decades in the making. It is
a heavy price dropped on our kids and grandkids, which they'll pay
throughout their lives in the form of higher taxes and fewer economic
opportunities.
Moreover, an infrastructure bill without a dedicated funding stream
has no teeth. Without budget certainty over a multi-year window,
transportation officials cannot move projects from the planning phase
to the construction phase. Ground cannot be broken, jobs are frozen and
any progress is bogged down by Congress' annual appropriations cycle.
In order to create value, infrastructure has to be funded.
President Reagan twice oversaw increases in the Federal fuel tax
during his Presidency, and for good reason. It is the most
conservative, efficient and viable funding mechanism readily available
for infrastructure improvement. That is because the fuel tax is
collected at the wholesale level--at what is known as a ``terminal
rack''--well before it reaches the retail pump. There are roughly 1,300
racks across the country, but collectively they're operated by only
about 300 entities.\13\ The result is a tried-and-true system that
minimizes overhead costs and maximizes efficiency--value--for road
users. Ninety-nine cents of every dollar collected flows straight into
the Highway Trust Fund.\14\ Compare that to alternatives like tolling,
where as much as 35 cents of every dollar is squandered on
administrative and collection costs.\15\
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\13\ https://www.irs.gov/pub/irs-utl/tcn_db.pdf
\14\ A Framework for Infrastructure Funding, American
Transportation Research Institute, Nov. 2017.
\15\ Ibid.
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Yet Congress has not adjusted the fuel tax since 1993. As COVID-19
roils oil markets, the present moment offers an enormous investment
opportunity to recoup the economic losses inflicted on our country. As
of May 26, the national average price for a gallon of gas is $1.96,
compared to nearly $3.00 one year ago.\16\ Increasing the Federal fuel
tax by only a nickel each year, over four years, would generate $340
billion in new revenue over the next decade. A five-cent increase in
the fuel tax would cost the average motorist merely an extra 50 cents
at the pump each week. Even if a 20-cent increase took effect
immediately, motorists today would still be paying 80 cents less on
each gallon of gas than they were paying a year ago. More importantly,
a well-maintained and responsibly funded surface transportation funding
program would create significant savings for motorists by steadily
reducing the $1,600 and 54 hours they are currently losing every year
as roads and bridges fall deeper into disrepair and no longer meet the
needs of 21st century America.
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\16\ Gasbuddy.com
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When it comes to funding the roads and bridges that Americans use
every day, the trucking industry more than carries its weight--and
we're proud of that fact. While trucks account for only four percent of
vehicles on our Nation's roads, they pay nearly half of all Highway
Trust Fund user fees. And truckers are willing to pay more to get this
job done. But we're not alone. America's farmers, manufacturers,
building trades, steel workers, business and labor leaders all stand in
unison behind this national goal. Together we can rebuild America--
faster, better and stronger than ever before. Investing in our Nation's
failing infrastructure will ensure that we are better equipped to
respond to this and future national emergencies. Additionally,
investing in infrastructure will provide a direct stimulus into our
Nation's weakened economy.
We urge Congress to provide an immediate infusion of additional
money to states for surface transportation. We believe that
approximately $32 billion will be necessary to offset losses from
Federal and state user fee reductions over the next year. The money
should initially come from the General Fund, to be distributed through
existing federal-aid programs, and replenished over four years by an
immediate 5 cent increase in the Federal fuel tax. With additional five
cent increases in each of the following three years, sufficient revenue
can be generated to ensure long-term funding stability for the Highway
Trust Fund.
Enactment of a robust long-term surface transportation
reauthorization bill will ensure the solvency of the HTF and give
states the certainty they require to make the major investments
necessary to address maintenance and congestion needs. Among other
funding priorities, ATA recommends direct funding for top freight
bottlenecks that will ensure that trucks can deliver goods more swiftly
in response to future emergencies. We also recommend the inclusion of
H.R. 6104, the Truck Parking Safety Improvement Act, which makes $755
million available to states for increased truck parking capacity.
Finally, ATA supports Federal grants of up to $2 million per state for
the purpose of creating or upgrading automated permitting systems.
While these expenses are eligible under FMCSA's High Priority
Innovative Technology Deployment (ITD) Program, this program is over
subscribed. While the lack of adequate automated permitting systems in
more than half the states creates inefficiencies during normal times,
the COVID-19 experience has exposed even more harmful effects during
times of crisis.
Incentives to Promote Investments in Cleaner, Safer & More
Fuel-Efficient Truck & Equipment:
COVID-19 is placing severe economic strain on trucking fleets and
truck and trailer manufacturers due to cash flow uncertainties. As a
result, investments in cleaner, more fuel-efficient, and safer trucks
and equipment have steeply declined.
New Class 8 heavy-truck orders in April 2020 were the lowest since
1995.\17\ The spread of COVID-19 led all four major heavy-duty truck
makers to suspend normal production schedules beginning as early as
March.\18\ Production in 2020 will likely be a 50-60 percent decline in
sales below the near-record build rate of 345,000 trucks in 2019.\19\
The global Class 8 downturn in 2020 will be worst felt in the U.S. as
it often exhibits deeper cyclical troughs.\20\ Fleets are delaying
ordering trucks until the economic uncertainty over the COVID-19 crisis
abates and a significant number of orders scheduled for near-term
deliveries have been cancelled due to financial uncertainty and/or lack
of freight to haul.
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\17\ Gilroy, Roger, ``April Class 8 Orders Reach 25-Year Low'',
Transport Topics, May 5, 2020.
\18\ Hitch, John, ``Pandemic's Impact on Current Truck
Production'', Fleet Owner, April 7, 2020.
\19\ ``COVID-19 Will Further Slow Demand for Heavy Trucks'', S&P
Global Ratings, May 5, 2020.
\20\ Id.
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Fleets have also curtailed ordering new trailers due to COVID-19.
U.S. trailer orders in April hit an all-time low after heavy
cancellations and the industry's rapid reaction to the unprecedented
business conditions generated by the economic shutdown.\21\ While often
overlooked, new trailers typically provide significant environmental
and energy savings benefits as exemplified under the U.S. EPA SmartWay
program which helps companies advance freight transportation
efficiency. \22\
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\21\ Gilroy, Roger, ``US Trailer Orders Tumble to All-Time Low in
April'', Transport Topics, May 25, 2020.
\22\ See: https://www.epa.gov/smartway.
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As the economy looks to recover from COVID-19, fleets must be
incentivized to place orders for new, cleaner, safer, and more fuel-
efficient equipment. Providing such incentives will result in a direct
economic stimulus, certainty for jobs in truck and equipment
manufacturing, and improvements to highway safety and fuel efficiency.
As Congress considers COVID recovery legislation, relief is sought on
these three fronts:
(1) Temporary suspension of non-fuel use taxes for the trucking
industry;
(2) Establishment of an immediate freight truck stimulus
package; and
(3) Short-term financial incentives to kick-start the purchase
of new U.S. manufactured trailers.
A Temporary Suspension of Non-Fuel Use Taxes:
Non-fuel Federal use taxes cost the trucking industry more than $6
billion annually.\23\ These taxes include the 12 percent Federal excise
tax (FET) assessed on new truck and trailer purchases, an antiquated
tax on trucks and equipment adopted in 1917 as a World War I revenue
source, which remains the highest excise tax imposed by the Federal
government on any product or service. The FET imposes an average
additional $18,000 price tag on a new Class-8 truck (assuming an
average purchase price of $150,000) and close to a $4,000 up-charge on
a new 53-foot box trailer (assuming an average purchase price of
$33,000). These excessive tax charges limit the amount of actual
physical equipment fleets can afford to purchase. The 97 percent of the
Nation's trucking companies that are small businesses are especially
impacted by these high taxes given that they already operate on razor-
thin profit margins.\24\ While the permanent elimination of the FET is
clearly justified, a temporary suspension of this tax through the end
of CY2021 would greatly incentivize carriers to purchase new trucks and
trailers, save manufacturing jobs, and put cleaner, safer, more fuel-
efficient equipment on the road.
---------------------------------------------------------------------------
\23\ See: https://www.fhwa.dot.gov/policyinformation/statistics/
2018/fe210.cfm.
\24\ American Trucking Trends 2019, American Trucking Associations,
July 2019.
---------------------------------------------------------------------------
A second non-fuel Federal use tax involves the FET assessed on
tires that only applies to the trucking industry. It was also imposed
to assist in paying for the war effort during World War I. While tires
account for two percent of fleet operating expenses, the annual tax
burden on the industry is approximately $500 million.\25\ A temporary
tax holiday through CY2021 for truck tire purchases would save the
industry approximately $800 million and go far in the economic recovery
efforts of the trucking sector.
---------------------------------------------------------------------------
\25\ See: https://www.fhwa.dot.gov/policyinformation/statistics/
2018/fe210.cfm.
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The final non-fuel Federal use tax is the Heavy Vehicle Use Tax
(HVUT), assessed annually on heavy vehicles at a rate of up to $550.
Though drivers are still on the road delivering vital supplies and
food, they remain subject to a tax burden that places enormous stress
on their businesses at the very time when there are agonizing decisions
made every day related to equipment and workforce. This tax is
especially burdensome because fleets must pay it in a single lump sum,
straining company cash flows. Suspending the HVUT through CY2021 would
save the trucking industry nearly $2 billion.
Establishment of a Freight Truck Stimulus Package:
To help rebuild and stabilize the trucking sector, creating a
freight truck stimulus package under the highly-successful Diesel
Emissions Reduction Act (DERA) would throw a lifeline to many trucking
fleets seeking to purchase cleaner equipment. DERA has become one of
the most cost-effective Federal clean air programs for reducing
emissions and saving fuel. EPA's most recent estimates indicated that
every $1 in Federal assistance is met with $3 in non-federal matching
funds, including significant investments from the private sector.
Furthermore, every Federal dollar generates between $5 to $21 in health
and economic benefits.
Using DERA to stimulate the economy is not without precedent. EPA
received $300 million through the American Recovery and Reinvestment
Act (Recovery Act) for clean diesel projects in 2009. These funds
expanded the program's ability to establish large-scale projects that
could deliver additional reductions through investments in cleaner and
more fuel-efficient technologies. This program was also credited with
sustaining and creating over 3,000 jobs. Many DERA-related jobs advance
green employment opportunities through the development, manufacturing,
and installation of clean diesel technologies.
While DERA has made tremendous progress in improving air quality
nationwide, annual dollars are stretched thin due to competition for
funding between school buses, ports, airports, rail, construction
equipment, and trucking. Given that approximately 57 percent of the
heavy-duty truck fleet is not equipped with technology meeting the most
current emissions standards adopted for model year 2010, and given the
expected downturn in new truck purchases into the foreseeable future,
developing and funding an on-road freight truck component under the
DERA program would be a win-win proposition to jump-start new truck
purchases and reduce emissions. ATA therefore supports an additional
$250 million in annual DERA funding be appropriated and specifically
set aside for new on-road freight vehicle purchases to accelerate fleet
turnover rates and to help renew truck manufacturing jobs.
New Trailer Purchase Incentives:
A single 53-foot standard box-type trailer can set a trucking
company back $33,000 on average. It is not uncommon for fleets to have
trailer to tractor ratios of 3:1, meaning they require three trailers
per power unit due to the frequent repositioning of empty, partially
loaded, and fully-loaded units. Other trailers designed for specialty
hauling operations--such as tank trucks, flatbeds, refrigerated units,
and automobile haulers--can sometimes cost upwards of $100,000.
Given the economic recovery needed for the pummeled trailer
manufacturing industry, ATA proposes a temporary $5,000 Federal voucher
program for the purchase of new North American manufactured trailers
that achieve either a U.S. EPA SmartWay, U.S. EPA Phase 2 Heavy-Truck
Greenhouse Gas Rule, or comparable state fuel-efficiency designation
through the end of CY2021. Today's new generation trailers are both
more fuel-efficient and provide significant associated emission
reductions. In fact, emission reductions and associated fuel savings
benefits from a new 53-foot trailer can achieve as much as a 10 percent
improvement.
In order to inject new life into what used to be a $12+ billion
U.S. industry, the establishment of a short-term Federal voucher
program is critical. Not only will such a program instantly help U.S.-
based trailer manufacturers and trucking companies rebound financially,
but incentivizing new trailer purchases will help continue the
historical progress the trucking industry has made over the last 35
years to advance the Nation's energy and clean air goals.
Support Workforce Development Initiatives and Invest in
Retraining the Unemployed:
The trucking industry's successful mobilization in response to the
COVID-19 emergency demonstrates how critical workforce development is
to the economy and our emergency response supply chain. Prior to the
COVID-19 emergency, the most recent statistics showed 7.4 million
people working in various occupations in the trucking industry,
accounting for 1 in 18 jobs in the U.S. ``Truck driver'' has been
reported to be the top job in 29 states.\26\
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\26\ https://www.marketwatch.com/story/keep-on-truckin-in-a-
majority-of-states-its-the-most-popular-job-2015-02-09.
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These are good middle-class careers that do not require the debt
that often comes with getting a college degree. The Bureau of Labor
Statistics reported a mean salary of $46,850 for truck drivers in a May
2019 report.\27\ An industry survey shows the average truck driver
makes over $53,000 per year, plus benefits like health insurance, a
retirement plan (e.g., 401(k)), and paid time off.\28\ A private fleet
driver similarly saw pay rise to more than $86,000 from $73,000 or a
gain of nearly 18 percent from 2014.\29\ In addition to rising pay,
many fleets were offering generous signing bonuses and other expanded
benefit packages to attract and keep drivers as recently as February of
2020.
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\27\ Occupational Employment and Wages, May 2019, 53-3032 Heavy and
Tractor-Trailer Truck Drivers, available at https://www.bls.gov/oes/
2019/may/oes533032.htm
\28\ ATA Driver Compensation Study (2017); American Trucking
Associations. https://www
.atabusinesssolutions.com/ATA-Store/ProductDetails/productid/3852684.
\29\ Id.
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The most recent jobs report, however, showed overall 14.7 percent
unemployment, and labor participation dropping to 60.2 percent--the
lowest since 1973. While portions of the trucking industry have
somewhat weathered the economic storm, according to the BLS May 2020
Report, 88,300 jobs were lost in the for-hire trucking industry in
April, or about 6 percent. That puts overall employment in the for-hire
trucking industry at the lowest level since November 2014. Part of the
reason for that, as this Committee well knows, is that we depend on our
customers to sustain our business--and, when they hurt so do we.
Prior to the current emergency, there was already a significant
need for more truck drivers. In July 2018, half of the Nation's twelve
Federal Reserve Districts specifically reported trucking capacity and
truck driver shortage issues.\30\ The industry faced a shortage of more
than 60,000 qualified drivers as of 2020, and will need to hire 1.1
million new drivers over the next decade, taking into account
retirement and the industry's aging workforce (7 years older than that
of your typical U.S. worker). Any further workforce attrition could
cripple the industry's ability to effectively and swiftly deliver goods
and supplies in a national emergency. Furthermore, there is a major
backlog in Commercial Drivers License issuance in many states due to
closures of many schools and testing facilities. As a major source of
national employment, however, we expect to be a leader in returning
Americans to work and have several proposals designed to maximize
opportunity for all Americans in this critical industry as the economy
recovers.
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\30\ The Federal Reserve Board, The Beige Book: Summary of
Commentary on Current Economic Conditions by Federal Reserve District,
July 18, 2018, https://www.federalreserve.gov/monetarypolicy/files/
BeigeBook_20180718.pdf.
1. H.R. 1374/S.569, the DRIVE Safe Act: This bipartisan legislation,
which is currently cosponsored by over one fourth of the House
and one third of the Senate, allows young Americans to become
truck drivers--a good paying job in an industry that badly
needs them. Though 49 states currently allow individuals to
obtain a commercial driver's license at 18, they remain
prohibited from driving in interstate commerce until they are
21. The bill establishes an apprenticeship program to train
qualified 18-20 year old CDL holders to safely operate in
---------------------------------------------------------------------------
interstate commerce.
2. H.R. 5145/S.2858, the Promoting Women in Trucking Workforce Act:
Through the establishment of a Women of Trucking Advisory
Board, we expect to be able to place greater focus on the
recruitment, training, and mentorship of women. This will lead
to greater industry diversity, while providing another tool to
stem the driver shortage.
3. H.R. 5118/S.3303, the Promoting Service in Transportation Act: This
legislation will raise awareness of great career opportunities
in the transportation sector. Through enhancing the use of
broadcast, digital and print media in public service campaigns,
we can ensure that the workforce is available and equipped to
respond to emergencies.
4. Workforce Investment and Opportunities Act (WIOA) Reforms: Training
opportunities will play a critical role in helping the
unemployed or underemployed return to work, and Congress should
pursue improvements to WIOA, which is up for reauthorization
this year, in both the short-and long-terms.
a. Improved Payment Efficiency Will Speed Up Training: Truck
driver training schools currently train between 13,000-
14,000 Americans each year under WIOA. With many workforce
boards temporarily closing due to the COVID-19 pandemic
coupled with various accounting requirements, outstanding
reimbursements were not timely processed, which delayed
entire classes of new drivers. Congress should consider
changes to ensure training reimbursements continue in the
event of a temporarily closed workforce board.
b. Expand WIOA Funding and Ensure Vital Industries Have Access:
In order to ensure opportunities for those who may not be
able to return to their prior jobs, ATA believes a one-time
infusion of WIOA funds with certain parameters is in order,
and that truck driving should be considered a nationally
``in-demand'' occupation. While some states and local
workforce boards include truck driving as an in-demand
occupation with access to WIOA funding, many do not. A
directive that funds should be prioritized for workforce
training for defined critical industries, including
trucking, would remedy this disparity. Additionally, during
the recovery period, Congress should streamline the intake
process at state and local workforce boards to ensure
people are being trained swiftly for open jobs.
5. Ensure Focusing on Safety Does Not Impact Independent Contractor
Relationships: Safety is always paramount for the trucking
industry, and many motor carriers rely on independent owner-
operators for their businesses and work with them to ensure
they are operating safely. Congress should ensure that efforts
on the part of a motor carrier to assist an independent owner-
operator in maintaining health and safety during the crisis
cannot be used as evidence of an employer-employee relationship
and resulting liability of the carrier.
These suggestions will help ensure the trucking industry has access
to a workforce that is able to support the critical needs of the
country as we cover from this crisis.
Provide for the Use of Electronic Shipping Papers:
Both the U.S. Centers for Disease Control and Prevention (CDC) and
the Occupational Safety and Health Administration (OSHA) recommend that
individuals practice social distancing to slow the spread of COVID-19.
Further, it is recommended that drivers, inspectors, shippers, and the
entirety of the hazardous materials (hazmat) supply chain avoid
touching documents whenever possible to reduce the likelihood of virus
transmission. Unfortunately, truck drivers hauling hazmat do not have
the option to apply this best practice due to certain Federal shipping
paper requirements.\31\ Specifically, the rigid procedures related to
the preparation and retention of shipping papers inadvertently prevent
truck drivers from taking precautionary measures intended to mitigate
the spread of the virus. Transitioning to electronic shipping papers
would enable truck drivers, their customers, law enforcement personnel,
and first responders to avoid the risks associated with passing hazmat
documents back and forth.
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\31\ 49 CFR Sec. 172.201-Sec. 172.205
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We recommend that Congress amend these Federal shipping paper
requirements to provide truck drivers hauling hazmat with the option to
utilize electronic shipping papers. Such an amendment is long overdue,
and is especially timely given the current public health emergency.
Highway carriers should have the option to utilize electronic shipping
papers if they are able to comply with comparable electronic shipping
paper regulations governing hazmat transportation by air and rail.
Transitioning to electronic hazmat shipping papers is not simply
about leveraging technology for technology's sake. Shippers and
carriers, as well as law enforcement officers and first responders,
stand to benefit from the efficiencies yielded by electronic shipping
documentation.
The current Hazardous Materials Regulations place great emphasis on
physical documentation requirements, which, in some cases, can
inadvertently endanger law enforcement personnel and first responders--
the very individuals these regulations are intended to safeguard. For
example, in emergency events involving hazmat highway carriers, first
responders need to access shipping papers in order to determine the
exact quantities and types of hazardous materials on board. If shipping
papers are physically located inside the truck, first responders must
put themselves in extreme danger to retrieve them. If first responders
and law enforcement do not have access to the vital information
contained in shipping papers, they will not have enough information to
make informed judgments about how to respond properly and safely.
With an electronic shipping documentation system in place, first
responders could access the information remotely, circumvent the risk
of entering the vehicle, and respond more rapidly. This concept has
already been tested and approved in the air and rail domains, and the
trucking industry is hopeful for the opportunity to embrace the safety
benefits of electronic shipping papers as well. From a safety
standpoint, the rationale for providing highway carriers with the
option to transition to electronic shipping papers is clear.
Furthermore, electronic shipping papers could also be incorporated into
the communication systems that many companies already have in place for
increased efficiency and enhanced sharing of hazard information with
need-to-know parties. Leveraging technology to improve critical
communication between drivers, first responders, and law enforcement
during an emergency is a goal that we can all support.
In addition to the safety benefits, using electronic shipping
papers is a sensible way for shippers and carriers to reduce their
impact on the environment. Electronic hazmat documents are not only a
more environmentally-friendly alternative to printed shipping papers,
they can also save shippers and carriers the cost of printing and
maintaining this paperwork.
For those reasons, we urge the Committee to take the appropriate
legislative steps to ensure that the safe, secure, and efficient
delivery of hazardous materials does not jeopardize the health and
safety of truck drivers, first responders, law enforcement personnel,
shippers, and consignees.
Conclusion:
Chairman Wicker, Ranking Member Cantwell, and members of the
Committee, thank you again for providing me with the opportunity to
testify before you today. As you have ascertained from my testimony,
the trucking industry have been at the forefront of COVID-19 relief and
response efforts, ensuring that food, medical supplies, and household
goods are swiftly delivered throughout the country. And trucking is
prepared to lead our Nation's economic recovery, delivering the goods
that will fuel commerce, the supplies that will empower businesses, and
the necessities that will nourish our communities.
The leadership and action of this Committee, Congress, and the
Administration over the next several months will shape the country's
continued response to, and recovery from, the pandemic. Investing in
our Nation's crumbling infrastructure will both create jobs and provide
a direct economic stimulus, while improving our crumbling roads and
bridges. Providing limited and narrow liability protections to motor
carriers and other industries who have acted in good faith on the front
lines of the pandemic will ensure our response and recovery efforts are
not assaulted by boundless liability. And, creating a roadmap and
framework for our workforce of tomorrow, when the trucking industry
will need to hire over one million new drivers just to keep pace with
growing demand, will spur an employment resurgence as we emerge from
this health crisis.
ATA applauds the efforts of this Committee throughout the COVID-19
response to ensure that America's trucking industry has the Federal
support it needs to serve our country through this crisis. The trucking
industry stands ready to work hand-in-glove with you on continued and
future COVID-19-related efforts. Under your leadership and guidance, we
believe that the important and necessary steps can and will be taken to
help see the trucking industry, and the nation, through these tough
times and into a better tomorrow.
The Chairman. Thank you very much, Mr. Guillot.
And now Mr. Ian Jeffries with the Association of American
Railroads. Mr. Jeffries?
STATEMENT OF IAN N. JEFFRIES,
PRESIDENT AND CHIEF EXECUTIVE OFFICER,
ASSOCIATION OF AMERICAN RAILROADS
Mr. Jeffries. Good afternoon. Chairman Wicker, Ranking
Member Cantwell, members of the Committee, thank you for the
opportunity to be here representing America?s freight
railroads.
I appear before you today in what are truly challenging and
tragic times for, quite frankly, all Americans. We are all
grateful to the courageous frontline professionals confronting
the COVID-19 pandemic, especially our medical professionals,
but also the thousands of critical transportation workers
keeping supply chains moving.
Throughout the pandemic, railroaders are delivering
critical goods to communities, families, and businesses across
the country. To be clear, railroads' first priority is their
employees' well-being. Since the onset of the pandemic,
America's railroads have closely followed and often exceeded
CDC and other experts' recommendations to protect employees
from this devastating disease. Most railroad jobs require
employees to be onsite to keep networks moving, and so
railroads quickly implemented social distancing policies and
established rigorous cleaning protocols for their work
environments. PPE use is pervasive and self-quarantining
protocols are in place for those exposed to the virus or
showing symptoms. Our industry is blessed with a dedicated
employee base for whom strict adherence to rigorous safety
protocols is the norm, and this diligence has provided
encouraging results to date.
In the meantime, freight railroads have worked closely with
our customers throughout these times to provide flexible, high-
quality service that meets shippers' needs, even as those needs
change because of the pandemic. Railroads truly are partners
with their customers, and the economically challenging
conditions our customers, like all businesses, have been facing
are reflected in railroad volumes. Weekly rail traffic has been
roughly 20 percent lower versus this time last year for the
past two and a half months. But every day, railroads continue
to deliver things like chlorine-based disinfectants for water
treatment, consumer goods moving in e-commerce, food, and
energy products to meet customer and community needs across the
country.
This continuity and reliability amid a global crisis are a
testament to the close relationship between railroads and their
customers, the power of American ingenuity, and the criticality
of a financially secure freight rail industry. I often say that
railroads play the long game, and the strong service levels we
see now are a direct result of years of sustained private
network investment paired with modernized operational plans
that enable highly resilient and flexible operations.
Sensible government policy has also helped in the
continuity of rail operations. Guidance from DHS in a
supporting document from the Surface Transportation Board has
been valuable in clarifying the critical nature of freight rail
operations, especially as hundreds of State and local
governments considered how to best protect their populations
through the issuance of local orders.
Additionally, temporary regulatory waivers issued by the
Federal Railroad Administration have been critical in allowing
Class 1 freight railroads to implement social distancing
policies to enhance employees' safety.
Railroads are also grateful to provisions in the CARES Act
and to individuals on this committee that make the rail
industry employees eligible for enhanced sickness and
unemployment insurance benefits, matching those benefits made
available to other employees--other U.S. workers.
As Congress considers the scope and nature of additional
stimulus legislation, we ask that you emphasize the here and
now. For instance, legislation from Chairman Wicker, Ranking
Member Cantwell, and others on this committee to prioritize
access for critical infrastructure workers to testing, PPE, and
other health-related supplies is wise. Should you pursue
infrastructure legislation to support economic recovery, the
focus should be on the funding and project delivery. In
contrast, Congress should soundly reject controversial policy
riders pursued by special interests.
In closing, despite the unknowns, one thing is clear:
successful navigation of these times requires flexibility,
innovation, and determination, all characteristics not only of
today's freight rail industry but also of our country. While
the country endures today's challenges, the future is indeed
bright.
Thank you. I am happy to answer any questions you might
have.
[The prepared statement of Mr. Jeffries follows:]
Prepared Statement of Ian N. Jefferies, President and Chief Executive
Officer, Association of American Railroads
Introduction
On behalf of the members of the Association of American Railroads
(AAR), thank you for the opportunity to testify on the rail industry's
response to the ongoing COVID-19 pandemic. AAR members account for the
vast majority of North America's freight railroad mileage, employees,
revenue, and traffic.
All of us are forever grateful to our medical professionals and
other first responders who are working on the front lines, at
substantial personal risk, to care for COVID-19 patients. We should
also be grateful to, and proud of, the men and women of the railroads
and other transportation industries who are working tirelessly day-in
and day-out behind the scenes to keep our supply chains functioning and
to deliver critical products to our communities.
As the COVID-19 pandemic continues to evolve across the globe,
North America's freight railroads remain focused on safeguarding the
health and safety of their workforce and maintaining the flow of goods
necessary to preserve public health, sustain families, and keep
essential businesses in operation. Railroads continue to deliver the
goods that matter, including chlorine-based disinfectants for water
treatment, e-commerce, food, and energy products to support electricity
demands, all at high levels of service.
Railroad Response to COVID-19
Railroads have established three main goals in their response to
the COVID-19 pandemic. The first is to keep their employees safe.
Guided by recommendations from the Centers for Disease Control and
Prevention and other health professionals, railroads quickly took
extensive steps to protect their employees. They transitioned most of
their office employees to telework arrangements and began using
technology to replace face-to-face interactions. For employees whose
jobs require them to work on-site or in the field, railroads worked
diligently to quickly implement appropriate social distancing policies
and established rigorous cleaning protocols for their work environments
(for example, sanitation of locomotive cabs).
The use of protective devices, including gloves and masks, is now
ubiquitous on railroads, and self-isolation protocols are in place for
those potentially exposed to the virus or showing symptoms. Access by
visitors to rail facilities has been sharply curtailed, and railroads
are providing timely information to employees through various
communications channels, such as e-mails, virtual townhalls,
newsletters, intranets, and conference calls. Railroads have also
bolstered the efforts of their own internal medical teams and increased
their emotional and mental health resources to ensure their large,
dispersed workforces remain supported.
My understanding is that, due to railroads' preventive measures and
the diligence of their employees, the number of confirmed COVID-19
cases among rail employees to date has, thankfully, been relatively
low. Moreover, I am not aware of any instances in which Class I
railroads have been unable to serve customers or suffered meaningful
business interruptions due to pandemic-related railroad crew shortages.
Railroads' second main goal is to continue to provide high levels
of safe, reliable service to their customers. Virtually every railroad
customer has had to adjust its operations because of the pandemic, and
railroads have partnered with them every step of the way. Railroads
know their customers count on them for responsive service, close
collaboration, and nimble operational adjustments; and that's exactly
what railroads are delivering. While occasional disruptions in various
locations and times on America's nearly 140,000-mile freight rail
network are bound to occur, by and large America's freight railroads
today are running better than ever, keeping North America's supply
chain moving and delivering critical products where they're needed.
Railroads are also making special efforts to expedite shipments of
goods that are in short supply or urgently needed.
Railroads' third main goal is to continue to operate efficiently
and preserve their financial stability and integrity, so that in the
future they will be there to handle our Nation's freight. In recent
years, railroads have continued to evolve their operating practices,
resulting in more resilient networks that put them in a strong position
to navigate the current market disruptions. As demand returns,
railroads' improved service capabilities will allow them to more
safely, reliably, and cost-effectively meet the increasing freight
transportation needs of their customers.
Railroads have also continued to invest substantial funds in their
core track, bridge, and signal infrastructure, prioritizing investments
that lead to safer, more reliable train operations. And while railroads
would prefer more traffic operating on their networks than they
currently have,\1\ they are taking advantage of reduced traffic levels
by fast-forwarding maintenance and construction activity, as
appropriate, to further strengthen their networks and make them better
able to serve their customers and our Nation in the years ahead.
---------------------------------------------------------------------------
\1\ Total rail traffic from mid-March 2020 through mid-May 2020 is
down approximately 20 percent as compared to the same time period in
2019. While it's impossible to precisely quantify the impact of the
pandemic on rail volumes, it's safe to say that the vast majority of
this decline, representing hundreds of thousands of carloads and
intermodal units, is pandemic-related.
---------------------------------------------------------------------------
Freight railroads continue to work hard every day to make a safe
rail network even safer. They recognize they have not yet reached their
goal of zero accidents and injuries, but data from the Federal Railroad
Administration (FRA) confirm that their safety gains over the years
have given them a good base for further improvement toward that goal.
Actions by Rail Regulators in Response to COVID-19
The rail industry appreciates the efforts of Federal agencies to
help ensure that railroads can continue to provide essential
transportation services during this difficult time. Each year, FRA
establishes an emergency docket for granting relief from its
regulations if needed to provide essential transportation services
safely in the event of an emergency. For example, in 2019, FRA used the
docket to grant relief from certain regulations when catastrophic
flooding occurred in several states.
Recognizing the emergency created by the COVID-19 pandemic, in
March 2020, FRA granted railroads temporary waivers from certain
regulations. Some of these regulations were waived to enable railroads
to abide by social distancing requirements and guidelines, while other
regulations were waived to enable railroads to continue to operate
effectively in cases of rail workforce shortages caused by the
pandemic. The rail industry is committed to using the waivers only to
the extent necessary to address legitimate problems arising from COVID-
19. To date, Class I freight railroads have only used the waivers
granted for social distancing purposes, and it was only those waivers
which they sought, and were ultimately granted, an extension for
continued use. Railroads' experience with COVID-19 has confirmed that
FRA is acting appropriately by using the emergency docket process only
when the situation is extremely urgent.
Railroads also commend the Department of Homeland Security's
Cybersecurity & Infrastructure Security Agency (CISA) for quickly
providing guidance on the essential critical infrastructure workforce.
This guidance has been important to the continuity of freight rail
operations, especially as state and local governments issued disparate
edicts in response to the pandemic. The Surface Transportation Board
emphasized CISA's guidance in its statement on April 22nd in support of
railroad operations, which urged state and local authorities to
recognize the importance of rail operations and to support the ability
of railroads and their supply chain partners to contribute to the
Nation's welfare.
Finally, the rail industry also appreciates the efforts of the
Department of Homeland Security's Customs and Border Protection for
ensuring that cross-border railroad operations have remained fluid and
unencumbered while the United States' borders with Canada and Mexico
remain closed to non-essential traffic. The rail industry has worked
closely with officials on both sides of the borders to ensure that we
can continue to serve our customers across North America's supply
chain.
Further Legislative Actions
In the weeks and months ahead, Congress will be considering
additional measures in response to the pandemic and its aftermath.
Railroads respectfully suggest that, as it does so, Congress should
include provisions that would facilitate the rail industry's ability to
move the goods our Nation depends on.
First and foremost, Congress should reject controversial policy
riders that have little or no relationship to actual pandemic-related
needs, such as harmful economic regulation or mandates for specific
operating models, such as minimum railroad crew size. Additionally,
railroads support the goal of improved access to reliable broadband for
all Americans, but Congress should reject proposals that mandate one-
size-fits-all, non-compensatory access to private property, including
railroad rights-of-way, under the guise of pandemic relief.
Additionally, railroads must also be able to ensure that proposed
broadband projects have undergone appropriate engineering review and
construction oversight and will comply with applicable Federal
regulations, including the use of flagmen for worker protection, and
other sensible national safety codes and standards.
Likewise, temporary waivers from existing maximum truck weight
limits for the delivery of emergency supplies might be appropriate in
some cases today, but Congress should not include permanent increases
to existing truck length or weight limits in any future pandemic-
related (or, for that matter, non-pandemic related) legislation. The
rail industry opposes permitting larger trucks to operate on our
Nation's roads and bridges until the user fees that trucks pay into the
Highway Trust Fund cover the costs of the highway damage they cause.
Second, rail employees, as well as other essential critical
infrastructure workers, should be given elevated priority access to
COVID-19 testing, personal protective equipment, sanitizers, non-
medical grade facial coverings, and other health-related or protective
supplies so that essential goods can keep moving. The rail industry
supports Chairman Wicker's bill--S. 3728, the Critical Infrastructure
Employee Protection Act of 2020--and thanks Chairman Wicker, as well as
Ranking Member Cantwell, and Senators Blunt, Young, and Sullivan for
supporting this effort.
Third, if an infrastructure package is considered in future
legislation, increased funding for highway-rail grade crossing and
grade separation projects, which communities across the country
continue to call for, as well as funding for Amtrak to maintain and
replace current critical infrastructure, should also be included.
Finally, the freight rail industry is grateful for the provisions
in the CARES Act that made rail industry employees eligible for
enhanced sickness and unemployment insurance benefits, matching the
enhanced benefits made available to other U.S. workers. Looking ahead,
railroads also support the removal of the impact of sequester on these
benefits as well as the Railroad Retirement Board's request for an
additional $11.5 million in administrative funds to provide much-needed
IT modernization.
Conclusion
Our country is enduring a truly challenging and unprecedented time,
but the optimist in me knows that this too shall pass. Because of the
many uncertainties we still face, the timing and the roadmap for
returning to a more normal way of life remain unclear. Successful
navigation of all the unknowns will require flexibility, innovation,
and determination--characteristics that the rail industry and its
employees have demonstrated in past emergencies and that are seeing the
industry through this one. In the weeks and months ahead, freight
railroads will remain in close collaboration with their customers and
employees, policymakers, and others to ensure that our Nation's freight
transportation needs are met safely, reliably, and cost effectively.
The Chairman. And thank you very, very much.
Now, Mr. Alex Oehler, Interim President and CEO, Interstate
Natural Gas Association.
STATEMENT OF ALEX OEHLER, INTERIM PRESIDENT
AND CHIEF EXECUTIVE OFFICER, INTERSTATE
NATURAL GAS ASSOCIATION OF AMERICA
Mr. Oehler. Chairman Wicker, Ranking Member Cantwell, and
members of the Committee, good afternoon. My name is Alex
Oehler, and I am Interim President and CEO of the Interstate
Natural Gas Association of America, or INGAA.
Thank you for holding this hearing and the opportunity to
testify today. INGAA appreciates the Committee's interest in
ensuring that our nation's pipeline infrastructure continues to
safely and reliably deliver the energy that Americans need
during the COVID-19 pandemic emergency.
INGAA's members transport natural gas through a network of
transmission pipelines that are analogous to the interstate
highway system. These are large capacity, critical
infrastructure systems that span multiple states or regions to
bring the nation's natural gas resources to market. Our members
provide an essential link between every major natural gas
supply basin in the country to every major consumption area in
the lower 48 states, and all of this infrastructure is built
and maintained using private capital.
Our industry is relentlessly committed to safe, reliable,
and responsible operations, which includes meeting the nation's
energy needs during the COVID emergency and taking every
necessary step to protect the health of our workforce and the
communities in which we operate. INGAA's members have made
significant changes to their operations to confront COVID-19
and have also contributed millions of dollars toward relief and
recovery efforts in their communities.
I wish to convey four main points today.
First, because most end uses of natural gas are essential
to the health, safety, and well-being of American families and
businesses, our nation's demand for interstate natural gas
transportation service has largely persisted throughout the
COVID-19 emergency, though some pipelines have experienced
changes in their utilization profiles that reflect the new ways
Americans are living and working during this time. Interstate
natural gas pipeline operators are quite confident that we will
continue to deliver energy supplies safely and reliably
throughout this crisis. Both the stability and interconnected
nature of our national pipeline grid and the diverse sources of
natural gas supply and storage provide a high level of energy
reliability for the Nation.
Second, pipeline companies recognize that as operators of
critical infrastructure, it is our responsibility to implement
safeguards that ensure pipeline operations, maintenance, and
construction activities can safely continue. Our frontline
employees and contractors have demonstrated remarkable
resilience during this challenging time, and INGAA member
companies have taken numerous actions to protect them,
consistent with the guidance of CDC, OSHA, and State and local
health departments.
Examples of specific actions include: using backup pipeline
control rooms to separate essential workers into isolated
shifts and locations; collaborating with pipeline contractors
to implement pandemic planning across the supply chain; and
developing robust plans to respond to a COVID-19 infection, if
needed, at a work location.
Third, I would like to commend several Federal agencies for
providing the targeted support that pipeline operators need to
ensure safe and reliable energy deliveries. For example, the
Pipeline and Hazardous Materials Safety Administration, or
PHMSA, has repurposed the agency's plan for responding to
extreme weather events to establish a mechanism for operators
to notify the agency of a need to temporarily reschedule
certain less essential compliance activities until after the
COVID-19 emergency subsides.
Other Federal agencies, including FEMA, CDC, DOE, and CISA,
have taken lead roles in working with State and local agencies
to ensure that essential critical infrastructure workers have
access to COVID-19 testing, personal protective equipment, and
other health-related supplies. We are grateful for these joint
efforts, and it is important that this coordination continues.
To that end, we strongly support the Critical Infrastructure
Employee Protection Act of 2020, which will ensure government
agencies continue to manage this effort.
Finally, although not directly related to COVID-19, the
reauthorization of our nation's pipeline safety programs will
help provide stability as PHMSA and State pipeline safety
agencies work to adapt to the changing environment we will be
living in for the months to come. INGAA supports a
reauthorization bill that increases funding for Federal and
State pipeline safety programs and establishes clear policy
priorities for PHMSA for the next 4 years. We appreciate this
committee's work to advance a bipartisan reauthorization bill
last July and look forward to continuing to work with you on
this important legislation.
Thank you again for the opportunity to testify today. I
would be happy to answer any questions you have.
[The prepared statement of Mr. Oehler follows:]
Prepared Statement of Alex Oehler, Interim President and Chief
Executive Officer, Interstate Natural Gas Association of America
Chairman Wicker, Ranking Member Cantwell, and Members of the
Committee:
Good afternoon. My name is Alex Oehler, and I am Interim President
& CEO of the Interstate Natural Gas Association of America (INGAA).
Thank you for holding this hearing and the opportunity to testify
today. INGAA appreciates the Committee's interest in ensuring that our
Nation's pipeline infrastructure continues to safely and reliably
deliver the energy that Americans need while we respond to and recover
from the COVID-19 public health emergency.
INGAA's members transport natural gas through a network of
transmission pipelines that are analogous to the interstate highway
system. These are large capacity, critical infrastructure systems that
span multiple states or regions to bring the Nation's natural gas
resources to market. Our members provide an essential link between
every major natural gas supply basin in the country to every major
consumption area in the lower 48 states, and all of this infrastructure
is built and maintained using private capital. Natural gas is used to
heat our homes, cook our food, power our Nation's industries, and
generate electricity. Natural gas is essential to manufacturing many of
the products used in hospitals to combat COVID-19, including personal
protective equipment.
Our industry is relentlessly committed to its obligation to operate
safely, reliably, and responsibly, and this includes continuing to
serve our communities throughout the COVID-19 emergency while also
taking every step necessary to protect the health of our workforce and
those communities in which we operate. INGAA's members have made
significant changes to their operations to confront COVID-19, and they
have also contributed millions of dollars towards relief and recovery
efforts in their communities.
I wish to convey four main points today. First, because most end
uses of natural gas are essential to the health, safety, and well-being
of American families and businesses, our Nation's demand for interstate
natural gas transportation services has persisted throughout the COVID-
19 emergency, although some pipelines have experienced changes in their
utilization profiles that reflect the new ways Americans are living and
working during this time. Interstate natural gas pipeline operators are
confident that we will continue to deliver energy supplies safely and
reliably throughout this crisis. The stability and interconnected
nature of our coast-to-coast natural gas pipeline grid, and the diverse
sources of natural gas supply and storage, provide a high level of
energy reliability for the Nation.
Second, pipeline companies recognize that as operators of critical
infrastructure, it is our responsibility to implement safeguards that
ensure pipeline operations, maintenance, and construction activities
can safely continue. Our frontline employees and contractors have
demonstrated remarkable resilience during this challenging time, and
INGAA member companies have taken numerous actions to protect them,
consistent with the guidance of the CDC, OSHA, and state and local
health departments. I'm pleased to report that our efforts are
working--INGAA members have experienced only limited instances of
COVID-19 amongst the pipeline workforce.
Examples of specific actions that INGAA members are taking include:
leveraging technology to create new ways to work from home; using
backup control rooms to separate essential workers into isolated shifts
and locations; conducting deep cleaning of work locations;
collaborating with our contractors to implement pandemic planning
across the supply chain; and developing robust plans to respond to a
COVID-19 infection at a work location if needed. The INGAA Foundation
has issued a guidance document that synthesizes practices the pipeline
industry is using to prevent and control the spread of COVID-19 during
construction and maintenance work.
Third, I would like to commend several Federal agencies for
providing the targeted support that pipeline operators need to ensure
continued safe and reliable energy delivery. PHMSA repurposed the
agency's plans for responding to extreme weather events and established
a mechanism for operators to notify the agency of the need to
reschedule any non-essential compliance activity until after the COVID-
19 emergency subsides. An example of such an activity is refresher
training programs that require employees to travel offsite. PHMSA's
actions have helped keep the pipeline workforce safe and allowed
pipeline operators to refocus resources on essential and time-sensitive
activities during the pandemic emergency, while ensuring that PHMSA has
all necessary information to continue its regulatory oversight.
Furthermore, several Federal agencies, including FEMA, CDC, DOE,
and CISA, have taken a lead role in working with state and local
agencies to ensure that essential critical infrastructure workers have
sufficient access to COVID-19 testing, personal protective equipment,
and other health-related supplies. Availability of these supplies has
been limited at certain times and in certain areas. We are grateful for
the joint efforts of federal, state, and local agencies to-date, and it
is important that this coordination continues in the months to come as
``stay at home'' orders and similar restrictions are loosened, which
could create a surge in demand for necessary supplies. Of course,
patients, healthcare workers, and first responders should always be
first in line to receive this equipment. We strongly support S. 3728,
the Critical Infrastructure Employee Protection Act of 2020, which
would ensure that these coordination efforts continue.
Fourth, although not directly related to COVID-19, I would like to
suggest that reauthorizing our Nation's pipeline safety program could
help provide stability as PHMSA and state pipeline safety agencies work
to recover and adapt to the dynamic environment that we will all be
living and working in for the months to come. As you know, PHMSA's
authorization expired last September. INGAA continues to support a
reauthorization bill that increases funding for Federal and state
pipeline safety programs and establishes clear policy priorities for
PHMSA for the next four years. We appreciate the Committee's work to
advance a bipartisan reauthorization bill last July and look forward to
continuing working with you on this important legislation.
Thank you again for the opportunity to testify today. INGAA members
will continue to do everything that is needed to ensure safe and
reliable natural gas transportation during this challenging time.
The Chairman. Thank you, Mr. Oehler.
Our timer shows that you still have 5 minutes on your
remarks. I hope we are not malfunctioning here.
And our final witness is Mr. Larry Willis, President,
Transportation Trades Department, AFL-CIO. And, Mr. President,
we are glad to have you and you are recognized.
STATEMENT OF LARRY I. WILLIS, PRESIDENT,
TRANSPORTATION TRADES DEPARTMENT,
AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL
ORGANIZATIONS (AFL-CIO)
Mr. Willis. Well, thank you, Chairman Wicker and Senator
Cantwell for the opportunity to testify this afternoon. And I
am proud to represent our 33 affiliated unions and the millions
of frontline workers that belong to those affiliates.
Our members--they operate and build the transportation
network that brings people, goods, and critical supplies to
every corner of our Nation. Whether they work in aviation,
transit, rail, construction, or longshore and maritime sectors,
they are essential by any definition of the word. Mr. Chairman,
you called them unsung heroes, and I could not agree more.
As COVID-19 has spread across our country, many of these
workers have continued to perform their essential duties, often
at great personal cost. I am talking about transit workers who
have continued to drive and maintain buses in the face of the
pandemic despite hundreds, if not thousands, of deaths in this
sector alone. The longshore workers who continue to load and
unload vessels in close quarters, despite outbreaks in our
ports and harbors, the freight rail workers who forge ahead,
even as carriers slash work forces that are already dangerously
thin. I am also talking about those who have lost their jobs as
our economy has ground to a halt, are unsure about when their
next paycheck is coming, and now find themselves without health
care during a pandemic.
Since the beginning of this crisis, transportation labor
has prioritized the safety of our nation's frontline work
force. We have called for appropriate PPE, workplace sanitation
and cleaning procedures, and proper social distancing. Despite
these repeated calls for actions, this administration and far
too many employers have failed to provide an appropriate
response to this virus and have flat-out refused to act. Those
failures have directly caused infections and a loss of life,
many of which could have been prevented with early and well-
coordinated strategies.
In the absence of leadership and quick action, it has been
working people, working people and their unions who have
sounded the alarm and used our collective power to make change.
While some progress has been made, we cannot continue to
forge ahead with piecemeal solutions. A crisis of this
magnitude demands a national response. Congress must act
decisively and with the full authority of the Federal
Government. For transportation workers, this means enforceable
modal-specific rules that we know will keep our members,
passengers, and their families safe. Many of these mandates we
have called for were included in legislation to be introduced
by Senator Blumenthal. I know Senator Cantwell is a cosponsor
as well, Senator Markey. I want to thank all of you for your
leadership on these issues and urge this committee to quickly
consider and pass this common sense bill.
We also support the Every Worker Protection Act of 2020
introduced by Senator Baldwin. It would require OSHA to issue
an emergency temporary standard within 7 days.
By adopting these measures, Congress can make a real
difference in the lives of frontline transportation employees
and all workers.
Your job, however, cannot end there. The economic impacts
of COVID-19 will reverberate years beyond this immediate health
care crisis. As states reopen and some Americans return to
work, the economy will not immediately snap back to pre-COVID
levels of productivity. Congress must use every tool at its
disposal to mitigate the incredible hard economic times that we
know are to come.
As part of that, we need bold Federal investments in our
transportation network. Public transit needs billions more to
maintain critical services and to avoid job cuts in communities
across the country. Amtrak reports that optimistically we will
see a 50 percent cut in ridership next fiscal year and plans to
furlough 20 percent of its workforce, a short-sighted plan that
should be rejected.
The closure of school facilities have resulted in the loss
of employment for thousands of school bus drivers. Congress
must do better with targeted funding for these critical
employees.
Slowing cargo volumes threatens the viability of the U.S.
maritime sector. Stipends for those currently enrolled in the
maritime security program should be increased to keep these
skilled mariners working.
We also know that investing in infrastructure creates and
sustains good jobs and construction, maintenance, and
operations. And if Buy America rules and smart procurement
reforms are adopted, we can also grow our manufacturing sector
as well. What is more, when we improve the quality and
accessibility of our transportation network, the economic
opportunity of those investments extend to every corner of our
economy, from businesses who can move quicker and more reliably
to workers who can reach new opportunities because of improved
highway and transit access.
Finally, Mr. Chairman, let me close by noting that my heart
is heavy thinking of George Floyd and so many before him who
have faced racial violence and death way too often in this
country. We have systemic racism, discrimination that we need
to fix across our economy. We know, as we talk about a COVID-19
response, that our black and brown brothers and sisters face
disparate impact there both from a health care perspective and
an economic perspective. So I want to think about those issues
as we consider what the right message and response is coming
out of this committee.
With that, I would be happy to answer any questions, and
thank you again.
[The prepared statement of Mr. Willis follows:]
Prepared Statement of Larry I. Willis, President, Transportation Trades
Department, AFL-CIO
On behalf of the Transportation Trades Department, AFL-CIO (TTD),
and our 33 affiliated unions, I want to first thank Chairman Wicker and
Ranking Member Cantwell for inviting me to testify today on the impact
of COVID-19 on the surface transportation sector and associated
challenges.\1\
---------------------------------------------------------------------------
\1\ Attached is a list of our 33 affiliated unions
---------------------------------------------------------------------------
As COVID-19 has spread across the nation, causing over 100,000
deaths and unprecedented disruption to our way of life, we appreciate
the opportunity to share the perspective of the frontline
transportation workforce.
The working people we represent move America. Our members run and
build the transportation networks that bring people, goods, and
critical supplies to every corner of our Nation. It is our members in
every segment of the aviation, transit, rail, longshore, and maritime
sectors that make these industries function. They are essential by any
definition of the word.
Over the last few months, many of these workers have continued to
perform their essential duties, far too often at great personal cost.
Many others find themselves among the 40 million Americans who have
lost their jobs due to an economy that has ground to a halt. During a
national health crisis, these members are now without their hard-earned
union health care benefits, and are unsure when the next paycheck is
coming. Workers have felt these impacts across every sector of the
transportation industry, and I am here today to tell their stories.
When essential employees like medical personnel have to get to
their jobs, it is our members who get them there safely. Thousands of
transit workers have continued to drive and maintain buses in the face
of pandemic, despite dozens of deaths in the sector. At the same time,
a drastic drop in fare box revenues threatens the abilities of transit
agencies to continue to provide service at all.
A 95 percent decrease in ridership on Amtrak threatens the
livelihood of its employees and the future of the carrier, who just
last week announced it will be cutting up to 20 percent of its
workforce starting in the fall. The indefinite cancellation of in-
person education has left thousands of school bus drivers out of a job
with no end in sight. The motorcoach industry, which provides critical
intercity transportation across the country, has seen nearly 3,000
companies shut down and almost 100,000 employees laid off.
This crisis also reminds us of the irreplaceable role of our
freight network and its essential workforce. Food, medical supplies,
and the goods that fuel our economy must still reach their
destinations, yet, COVID-19 has not spared the systems and employees
that move them. Across the country, freight railroads are slashing
already dangerously thin workforces as carloads fall. We are witnessing
outbreaks at ports and harbors where longshoremen load and unload
vessels in close quarters, and increasingly uncertain futures for the
maritime shipping industry and sustainment of the essential defense
functions it provides. Even the Postal Service is at risk, as USPS and
the 600,000 jobs it supports face total insolvency in a matter of
months without needed and warranted government assistance.
Further, a loss of state revenues and financial uncertainty has
frozen critical infrastructure projects, threatening both the
construction workforce and the transportation system that depends on
the continuous maintenance and improvements they provide.
Since the beginning of the pandemic, it has been the top priority
of transportation labor to ensure that frontline employees are provided
the protections they need to keep them as safe as possible from
exposure to COVID-19. Simply put, it is untenable and unacceptable for
any essential infrastructure employee to go to work without adequate
personal protective equipment (PPE), for their workplace to be
improperly cleaned and sterilized, or to be potentially exposed to
COVID-19 because of improper social distancing policies or passengers
without face coverings.
Unfortunately, many of our employers took weeks or months to roll
out meaningful COVID-19 responses. Some airlines, as well as Amtrak,
actually prohibited the use of masks or gloves by their employees until
pressured into reversing course. A commuter railroad refused to stop
using a biometric device employees use to clock in to work,
acknowledging that while the equipment was frequently touched by dozens
of people, it would be too burdensome to switch to a safer system. And
a freight railroad provided its conductors and engineers with masks of
such poor quality that facial hair poked straight through the fabric.
While some individual efforts have been more successful, the
patchwork of COVID-19 plans across our transportation system has been
inadequate. A national crisis demands national response and leadership.
This is why we have repeatedly called on the Federal government and
this Administration to impose mandatory safety rules in all modes of
transportation and across our broader economy. Too often these pleas
have been rejected or simply ignored due to a misguided belief that
employers will eventually rise to the challenge of their own accord.
Let's be clear: these failures and inactions have directly caused
infections and cost lives that could have been saved with early and
well-coordinated strategies.
Let us also be clear: it has been workers and their unions that
have sounded the alarm in the workplace and used collective bargaining
agreements and public advocacy to force the hands of policymakers and
employers. Ongoing efforts to document safety violations and fight for
the right of sick workers to stay home, and the availability of basic
Employee Assistance Programs exists because many transportation workers
are covered by a collective bargaining agreement.
However, we cannot continue with piecemeal solutions across
companies, agencies, cities and states. Congress must act decisively
and with the full authority of the Federal government. The recently
introduced Critical Infrastructure Employee Protection Act of 2020
seeks to better define essential employees and direct PPE resources. As
the Committee further considers this legislation, we state
unequivocally that it must also include strong Federal mandates to
provide essential employees with the protections we know are needed to
keep them safe. This includes:
The provision of high quality PPE, in accordance with CDC
guidelines, to employees who are at risk of infection. This
must include masks, gloves, hand sanitizer, and sanitizing
wipes
A requirement of owners and operators of planes, commercial
motor vehicles, trains, and vessels to clean and sanitize them
per CDC guidelines
A requirement of owners and operators of transportation
facilities to clean and sanitize them per CDC guidelines
The establishment of mandatory notification systems, by
which employees are alerted if a coworker has tested positive
A mandate for passengers to wear masks on all passenger
transportation
In addition to the transportation and modal specific standards, we
also support the COVID-19 Every Worker Protection Act of 2020 and the
promulgation of an OSHA Emergency Temporary Standard (ETS), to provide
enforceable workplace safety standards across the country and across
industries. Regrettably, the Occupational Health and Safety
Administration (OSHA) has thus far been unwilling to issue a standard
that would mandate adequate provision of PPE and workplace cleaning and
sanitizing. While the ETS is long overdue at this point, the bill would
be a strong step towards finally protecting all workers from COVID-19,
as well as from retaliation for reporting infection control problems to
their employer or for wearing their own PPE.
The unique impacts of COVID-19 may also necessitate a fundamental
reimagining of existing employee benefits. It is unconscionable that
any worker in the U.S. would be forced to go into work while sick with
the virus because they are not offered paid sick leave. The deaths of
100,000 individuals and counting threaten financial ruin for thousands
of families, and to this end, some form of death benefit could be
warranted. We support the HEROES Act expansion of the Longshore and
Harbor Workers' Compensation program to cover any worker infected with
COVID-19, and believe that it is an excellent template for other
frontline workers. We also support the creation of a hazard or premium
pay mechanism for frontline employees who continue to come to work
despite the danger to themselves and their families.
By adopting these tenets, the Committee can make a real difference
in the lives of frontline transportation workers, and better ensure
that they can safely return to their families at the end of the day.
The members represented by TTD's affiliate unions have risked
everything to keep the Nation moving, and they deserve both gratitude
and decisive action. We look forward to the Committee's passage of a
bill that reflects this.
Congress' job however, cannot end there. In addition to the need to
protect workers from the virus immediately, we must also consider the
medium and longer-term economic impacts it will cause. As states reopen
and some Americans return to work, we should understand that the
economy will not immediately snap back to pre-COVID levels of
productivity. While there is no doubt that the shutdowns and social
distancing requirements of the last several months were necessary,
potentially catastrophic after-effects must be addressed. Fortunately,
Congress has numerous tools at its disposal to avoid some degree of the
hard times ahead.
Without bold Federal investments, core components of our
transportation network face disaster. Passenger transportation will not
rebound the day, week, or month that distancing restrictions are
relaxed. While outside the jurisdiction of this Committee, we have
called for $32 billion in emergency supplemental funding for public
transit agencies to ensure that employees remain connected to their
jobs and benefits, and that transit systems can continue to operate
during elongated downturns in fare box revenue. Similarly, Amtrak
projects that, optimistically, its ridership will be 50 percent of
normal in FY '21, and it believes it cannot operate on such reduced
revenues. It is similarly likely to need further assistance to continue
to be viable and to pay its thousands of employees. We also believe
emergency supplemental funding is needed for the motorcoach industry
and its heavily impacted workforce.
We also know that investing in infrastructure is one of the
greatest investments the Federal government can make, with a return of
between $1.50 and $3 dollars for every dollar spent. Those investments
directly create and sustain good jobs in construction, engineering,
maintenance, and operations. What's more, when we improve the quality
and accessibility of our transportation network, the economic
opportunity of those investments extends to every corner of the
American economy--from businesses who can move goods quicker and more
reliably to workers who can reach new opportunities because of improved
highway and transit access.
While we believe that significant long-term investment in
infrastructure is one of the most crucial steps Congress can take right
this minute to put us squarely on the path to recovery, those
investments will mean little if we sacrifice our capacity to put
projects on the ground. The economic impacts of COVID-19 on state and
local funding must also be taken seriously. Revenue from sales taxes,
gas taxes, municipal bonds, fare box collection, tolling, and other
sources state and local governments count on to pay their share for
infrastructure have taken a significant hit. We cannot wait to shore up
lost revenue and make critical infrastructure investments until after
state DOTs are forced to furlough workers, cities can no longer access
financing to revitalize crumbling streets, and construction workers
have been laid off because projects are being cancelled.
Economic impacts must also be addressed in the maritime industry,
where slowing cargo volumes threaten the viability of the U.S. flagged
vessels enrolled in the Maritime Security Program. We have called for
both supplemental stipends for enrolled vessels and programmatic
waivers that will preserve the defense-critical operational readiness
of the vessels and ensure continuing full employment of qualified U.S.
mariners. Beyond economic needs, U.S. mariners are presently trapped
aboard U.S.-flag cargo ships, unable to take leave or return home due
to extreme COVID-19 lockdown measures imposed by foreign governments
who will not allow them to disembark at ports and access
transportations services. These mariners must be brought home
immediately.
As mentioned, the closure of school facilities has resulted in loss
of employment for thousands of school bus drivers. While Congress has
directed meaningful funding to education programs, including for
payroll of district employees and contractors, these funds have not
always reached these workers. To date, far too many drivers have been
left out in the cold. Congress must address this problem and ensure
that the jobs and benefits of all school bus drivers are protected.
We also must not allow short-sighted political gamesmanship to
destroy irreplaceable and critical institutions. Congress must address
the emergency financial needs of the USPS, and should not permit long-
standing privatization proponents to take advantage of the pandemic to
allow USPS and its workforce to wither on the vine.
Finally, in the event that any future stimulus legislation
addresses the manufacturing sector, we call on you to ensure that such
efforts specifically and exclusively target domestic manufacturing with
strong domestic content standards. We will not recover from this crisis
by subsidizing work performed in other countries and overseas.
Congress' role must not end when COVID-19 positives hit zero, or
the last patient leaves the hospital--it must wield the full strength
and support of the Federal government and lead our country and its
critical infrastructure workers forward. We cannot undo the tragic
impacts the pandemic has had thus far, but we can change the terms of a
post-pandemic future.
While I have outlined a number of positive steps Congress can take
to alleviate the effects of this crisis, I must also warn that there
are industries who are opportunistically using this public health
crisis as an excuse to rush through their own unrelated priorities--one
clear example being automation.
TTD and our affiliated unions welcome further debate on automated
vehicles, for example. We and our unions have a great deal to say about
the safety and economic effects of this technology, and we believe both
are worthy of further exploration through careful consideration in
hearings held by this committee. We look forward to taking part in
those discussions when Congress returns to normal order--but so long as
our members are dying every day because this government has failed to
provide them with the protections and safety standards they need, it
would be unconscionable to prioritize such a serious and controversial
set of regulatory changes over addressing the myriad outstanding needs
of the American people.
While this may not hold true five, ten, or twenty years in the
future, let's all face the facts of reality today: there are no
realistic opportunities for this technology to meaningfully ease the
immediate pains Americans are facing during this crisis. We agree that
more needs to be done in Congress to properly regulate automated
vehicles, and we look forward to working with the Committee on these
issues once we have defeated the ongoing pandemic.
We also call for vigilance from this committee on actions taken by
the Department of Transportation's modal agencies. While agencies have
found it prudent to waive, modify, or otherwise suspend certain safety
regulations to better adapt to COVID-19 conditions, we note that many
of these waivers align with long-term deregulatory priorities of
industry. Going forward, we reject any characterization that brief
demonstrations during deeply unique circumstances is adequate
justification for the modification of long-standing regulations. It is
our hope that the Committee will exercise its oversight on any such
attempts.
In closing, I speak to you today at a critical juncture in the
Nation's response to the COVID-19 pandemic. The actions that this
committee and Congress take in the coming weeks will be highly
determinative of what the future holds for the critical infrastructure
workers represented by TTD's member unions. We look forward to working
with you on legislation that protects workers, their families, and the
travelling public today; and guarantees a robust and functional
transportation system for tomorrow. Thank you for the opportunity to
testify.
The Chairman. Thank you, President Willis.
And let me say other witnesses have alluded to what our
country is going through at this point not only with the COVID-
19 but also the protests, the indignation, and outrage from
what we have seen by a few people against totally innocent
people. So I appreciate what you have said. Our sympathies go
out to the Arbery family, the Taylor family, and the family of
George Floyd.
I understand, sir, that your AFL-CIO building sustained
damage during the protest on Sunday, and we regret that there
were some people who took that opportunity to destroy private
property needlessly.
But I do appreciate those who have mentioned that, and I
can assure you that members of this committee are trying to get
our arms around this question and find a way to voice our
feelings in this regard. So thank you for that.
Let me ask. Is there anyone on the panel, including the
four present and the one testifying, Mr. Guillot--are there any
of you who do not believe we need a real strong infrastructure
bill sooner rather than later? We are unanimous on that. I
think Senator Cantwell and I are unanimous on that too.
Mr. Bozzella, you mentioned a shared commitment from
industry and government. So thank you, those of you from labor
and industry, who are willing to do your part on this
commitment. Rail carloads are down 25.2 percent. Intermodal
shipments are down 17.2 percent. For-hire truck tonnage has
dropped 12.2 percent in April alone. So, yes, thank you for
helping to share this commitment.
If you want to describe some more of the commitment that
you intend to offer, that is fine. But what suggestions do you
have to the Federal Government, to the agencies that might be
listening, but particularly to those of us who enact
legislation about what our share of that commitment might be.
Who wants to go first? No one wishes?
Mr. Jeffries. So I think several of us pointed out the
legislation introduced by this committee by you, Mr. Chairman,
and Ranking Member Cantwell because, as we have all discussed
and as my colleague, Mr. Willis, focused on as well, we are
relying on frontline workers to be out doing the jobs to keep
America moving to serve Americans throughout this process. And
that is not ending anytime soon. And ensuring that they have
full access to testing, to PPE, and other medical-related
supplies is key. I think we owe that to them. I know railroads
have worked very hard to ensure that their employees have what
they need to be able to do the job safely. There were
challenges in the supply chain early on in getting those
materials. We have worked through a lot of that. But as we
continue testing, that is going to be a challenge. So that
piece of legislation is key.
I think beyond that, you mentioned it, a big, bold
infrastructure bill. We think that if Congress pushes forward
on that, there is a real opportunity to put significant funding
out into a much needed multimodal system. We would love to see
it not get bogged down by policy fights, but let us focus on
getting the money out there and getting projects done.
The Chairman. That would create hundreds and hundreds of
thousands of American jobs as we are trying to climb out of
this recession that we are in, and also we would have wonderful
assets at the end of the process to show for the taxpayers'
money.
Mr. Bozzella, you may want to follow up on that. But let me
ask you also to comment on the supply chain, which you
mentioned several times in your testimony. You talked about how
some automakers were able to forge new partnerships, retool,
train people. You made ventilators and PPE. Is it fair to say
that pivoting to doing different things largely required a
different supply chain? And is it fair to assume that you were
not purchasing as many components from your suppliers while
this crisis is in process?
Mr. Bozzella. Yes, Mr. Chairman. Thanks for the question.
You are right about the need for automakers and suppliers
to pivot. And Senator Cantwell, of course, referenced the
partnership between Ventec and General Motors that produced
ventilators. So there was a tremendous need and increased
demand for medical devices and PPE that the auto industry was
able to respond to because of extensive supply chains. And so
we were able to retool and reimagine the manufacturing process
and the supply chain.
I think you are exactly right, though, that the supply
chain for the automotive sector is very stressed right now. The
entire sector is. And as we start beginning our manufacturing
processes again, hopefully we will see a little bit of relief
there. But there are still liquidity challenges in the supply
chain that need to be addressed.
I will say, back to your previous question, it really is
important that we continue to work on alignment between various
states and also our trading partners notably in the region,
Mexico and Canada, to make sure that the broad supply chain,
the regional supply chain, is there and ready to go as the
industry restarts.
The Chairman. That is a very important aspect to our supply
chain. Is it not?
Mr. Bozzella. Yes.
The Chairman. Thank you.
Now, we are in the middle of a second vote, and I think
what I will do is hand the gavel to Ranking Member Cantwell and
she will be asking her questions while she has got the gavel.
And then I will try to be back as soon as possible and we will
not have to stop the proceedings during this vote. So, Senator
Cantwell, you are recognized.
Senator Cantwell [presiding]. Thank you, Mr. Chairman.
And I want to thank the witnesses for mentioning George
Floyd and the tragedy that has occurred in our Nation. And I
also want to add my condolences to his family. Most
importantly, I want to say that I am committed to making sure
that we get justice for George Floyd and that we reform our
system. That is going to take a lot of work by all of us. I am
not sure much of that work is in our jurisdiction, but
nonetheless, I very much appreciate mentioning of that fact
today. And the business community can help us with this. And so
I very much appreciate you mentioning him today.
You have also said some very interesting things, each of
you. And I thank you for that. I like the words ``robust
multimodal infrastructure investment.'' Nothing could sound
better to me. I like the investment in the supply chain,
whether it is aviation or automotive manufacturing. Supply
chains mean expertise. It means jobs. It means you are going to
keep your manufacturing base because you have the efficiency
and the skilled workers to put it all together. So we have got
to keep that going.
But I think I will start with you, Mr. Willis. You were
talking about the safety and security of the workforce that it
takes when you put them back to work. You are most familiar
with the recent things that we have talked about because of
aviation and what we tried to get the COVID Task Force to do on
aviation. But what do we need to do in other transportation
sectors to make sure that the workforce is safe?
Mr. Willis. Well, thank you, Senator, and thank you for
your leadership on these issues.
You know, Mr. Jeffries mentioned it, the Chairman mentioned
it. You know, access to testing and PPE are obviously
important. But quite frankly, what my members are telling me
every single day is that what they need to see in the workplace
are real safety requirements on their employers. You know,
treatment, access to masks is fine, but there needs to be a
requirement that it actually gets used and deployed in the
right way, that cleaning, that disinfection procedures are
occurring in the correct manner, that social distancing like we
are doing here is done in the transportation workplace, again
pursuant to CDC guidelines.
We have had to work way too hard with our employers on too
many occasions. We have asked this administration, both DOT and
the various modal agencies, OSHA, to step in and impose these
requirements to protect workers. And we have not gotten there.
So I think the legislation that you mentioned that Senator
Blumenthal and you and others are doing we think is the right
course, and it needs to be included in any type of broader
COVID response bill that this committee and the Senate
consider.
Senator Cantwell. Thank you.
Mr. Guillot, thank you for your testimony and certainly we
know how important moving freight is. Do you have any comments
on the safety and security of your workforce? And I am curious.
You mentioned an infrastructure investment. What were you
referring to that you thought you had a good idea for how we
could move forward on infrastructure investment?
Mr. Guillot. Well, we will start with that question there.
The American Trucking Associations has proposed an increase in
the fuel sales tax, 5 cents for the next 4 years each year,
adding up to 20 cents. That will add up to hundreds of billions
of dollars, of new dollars, to the Federal Treasury there to
assist with additional funding for infrastructure.
Getting back to the question concerning our workers and the
safety of our workers, it has been extremely important for us
through this health pandemic to get the proper equipment to
each and every one of their hands. We have a unique problem in
the respect of that most of our workers may not come to a place
of our business, our terminal locations, as the truck drivers
are traversing across the country. So immediately when the
pandemic first happened, we were, if you will, finding our
truck drivers, getting the proper equipment to them--it was
extremely difficult to do that.
We rallied. We are innovative as an industry. American
Trucking Associations has helped with thousands of gallons of
hand sanitizer, free at certain locations across the country
for truck drivers. We have got a face protection mask that has
been available across the Nation. So we are as an industry
extremely concerned with the protection of all of our workers,
most notably our truck drivers.
I will say this. Even a company as small as mine--I have
got dispatchers that has taught our truck drivers how to make
hand sanitizer from various products at home. I purchased face
masks from other employees' businesses, secondary businesses of
mine, to help supply with our truck drivers. So I think we are
innovative in that respect. We are partners with distilleries,
for instance, getting hand sanitizer made from that. So our
innovation as an industry and working together with partners is
very important to us and our employees, our truck drivers in
particular in the front lines because we certainly want to keep
them there delivering the goods every day to the rest of the
economy.
Senator Cantwell. Thank you. And again, thank them for that
work because there is a lot of critical supply, specifically
food, that has been delivered. So we so appreciate it.
Senator Fischer is next.
STATEMENT OF HON. DEB FISCHER,
U.S. SENATOR FROM NEBRASKA
Senator Fischer. Hello. Am I unmuted?
Senator Cantwell. Yes.
Senator Fischer. OK. Thank you. Thank you, Senator
Cantwell. I appreciate you and Chairman Wicker holding this
hearing today.
Mr. Jeffries, you briefly mentioned in your testimony AAR's
support for the Railroad Retirement Board's request for funding
to continue its IT modernization work. Senator Duckworth and I
have sent letters to the Senate Appropriations Committee for
several years in support of continued funding for that work.
Mr. Jeffries or Mr. Willis, can you describe what the
impact of modernizing the Railroad Retirement Board's IT system
would have on our railroaders?
Mr. Jeffries. Certainly, Senator. A great question, and I
will take a crack and then let Mr. Willis fill in because I
think this is one where we definitely see eye to eye on.
Both rail labor and the railroads have jointly made those
requests in support of increased IT funding and certainly thank
you for your support, Senator, which is invaluable for getting
those increased funds. And quite frankly, what we have right
now in the rail retirement system under the Rail Retirement
Board is something akin to going to the DMV in the 1960s in a
lot of instances.
So this is really just allowing that agency the ability to,
I would say, take the giant leap forward probably into the year
2000, providing an online system that does not require retirees
and potential retirees to drive and travel to an office
location that may not be near where they live or work to do all
of their paperwork manually, to spend valuable time and energy
going through that very manual process. It really brings a base
level of technology into the rail retirement process and will
create dramatic efficiencies for the agency and, of course, for
retirees and potential retirees.
Senator Fischer. Mr. Willis, did you have anything to add?
Mr. Willis. Yes. Let me just, first of all, thank you for
your support on those issues. As you note, this is something
that we and the rail carriers, AAR and others, have been able
to partner on.
You know, the field offices for the rail retirement are
critical, and I think that has to be part of the answer as
well. But making sure that our members can access their
accounts and make changes and get information online is
absolutely essential. And the technology improvement money that
you have championed and talked about is continuing to get out
and make real improvements there.
So this is a system that is funded by both workers and the
industry. It is our collective money. It has worked, quite
frankly, remarkably well, but some of the IT challenges have
gotten behind the board and I think the money that Congress is
attempting to appropriate and authorize here is absolutely the
right answer. So again, thank you for your work on that.
Senator Fischer. Thank you, sir.
Mr.--is it Guillot? I hate to wreck your name there.
Mr. Guillot. Yes.
Senator Fischer. Truck driver detention for loading and
unloading at shipper facilities was an issue for drivers even
before the pandemic. Some reports indicate that detention at
shipper facilities worsened early on in this pandemic. What do
you think may have caused an increase in drivers being detained
at these shipper facilities early in the pandemic? And then
additionally, has the industry gained any kind of insight on
driver detention in the past couple of months? And do you have
any recommendations for this committee on ways that we can
address this issue going forward?
Mr. Guillot. Thank you for your question.
I think initially when the pandemic first happened, we seen
a surge in certain consumer products. Everybody knows the
shortage of toilet paper on the grocery shelves. Right? So
certainly facilities I think received a surge in unexpected
business. And, yes, we did have in certain locations an
expansion of hauling detention. It was certainly a problem
beforehand. We continue working with shippers and receivers to
try and improve upon that. I think we have seen some recent
headway. A little less, a little over a year ago, electronic
logging devices kind of brought that topic to the forefront. So
we have been working together to try and improve upon those
issues.
As far as what have we learned in the last couple months,
again I would like to implore upon the shipping public,
shippers and receivers, working with trucking companies to
minimize or eliminate these delays. Certainly if we are
delivering a load that may be a consumer-type good, but yet our
next load may be the medical supplies a particular community
may need. So even if it is not a critical commodity unloading
or loading, the next one may be from the next truck driver that
we are hauling. So every load is critical of being unloaded.
I will also mention as far as detention and demurrage, I am
in the intermodal business and have been my entire career. So I
am extremely concerned with the ocean lines and the
relationship with drayage companies around the country
concerning those fees where we feel unjustly it puts an
additional burden on the supply chain, and we want to continue
working with the ocean lines and, quite frankly, have not had
as much response from them as we would like to see during this
COVID-19 pandemic.
Senator Fischer. Thank you, sir.
Thank you, Senator Cantwell.
Senator Blumenthal [presiding]. In the name of the Chair, I
call on Senator Udall.
STATEMENT OF HON. TOM UDALL,
U.S. SENATOR FROM NEW MEXICO
Senator Udall. Thank you very much.
Generally, if a state or the Federal Government is giving
liability protections, there is a strong safety standard that
industry needs to meet to benefit from that kind of protection.
Otherwise, it simply gives business a huge incentive to take
unreasonable risks in pursuit of profits.
We are hearing calls from some industries that they want to
be protected from paying damages to their employees and
customers who get sick due to the lack of COVID protections.
This question is really to all the panelists. What specific
and binding safety and consumer protection standards are
appropriate if Congress were to consider limiting liability?
Mr. Bozzella. Senator, this is John Bozzella with Auto
Innovators. I will get started, I guess.
First of all, at least from our perspective, the liability
limitations that we are talking about should be and need to be
targeted and limited and related to this set of issues and the
concerns that we have with regard to COVID-19. They should not
and in no way should be related to acts of gross negligence or
companies that act in a reckless manner. Really, what we are
trying to focus on is getting the right balance between
avoiding numerous lawsuits and restarting the economy in a safe
manner.
With regard to safety, our member companies have robust and
very, very in-depth safety protocols that are built on CDC
guidance as a baseline that are put in place in consultation
with State and local authorities and that are in place on the
ground responsive to local issues. And so that is what we are
doing right now, and frankly, we have been doing it since
January because we are getting perspective as we restart in
economies around the world. And so we are working from a very
robust and strong set of standards from the get-go.
Senator Udall. Anyone else want to jump in on that?
Mr. Guillot. Senator Udall, this is Randy Guillot with the
American Trucking Associations.
Our industry--the American Trucking Associations and our
industry, the trucking industry, is on the forefront of safety
each and every day. We are very concerned with following the
guidelines as issued by CDC, as well as OSHA, and want to
comply with that each and every day, every one of our
companies.
The limited liability protections that we are referring to
is similar to what Mr. Bozzella has just made comment on. If
there happens to be a bad actor, we are not asking for
protections for a bad actor. We are asking for limited
protections for people who are acting in good faith trying to
follow all these guidelines that are coming out.
Thank you for your question.
Senator Udall. Thank you.
Let me follow up on this question. You know, new analysis
published in the medical journal, ``Lancet,'' examined 172
studies and found that N95 masks and other respirator masks
offered 96 percent protection, while surgical masks only
provide 77 percent protection against the coronavirus. We know
essential workers should have access to these masks, but
supplies are extremely limited.
Mr. Willis, what specific actions should the administration
take to provide those masks to workers and businesses across
America so they can return to work with confidence?
Mr. Willis. Well, thank you, Senator, for that question.
You know, I think you are right. I mean, N95 masks, given
the nature of this virus, should be provided to transportation
workers in many situations. It is obviously an airborne
disease, and those masks are specifically designed to confront
that.
The problem, quite frankly, is many health care workers and
other first responders are not able to secure those today. And
quite frankly, I think again this is a failure of the
administration to really get in front of this, to really see
what was happening in China and elsewhere, and marshal the U.S.
industries in a better organized way to make these masks and
other personal protective equipment that we knew were going to
be needed, using the Defense Protection Act in a better manner,
using the buying power of the Federal Government, recognizing
that there are a lot of masks out there that are advertised to
do things that, quite frankly, they do not do. And I think
again the Federal Government has to take the lead in that as
opposed to states or individual agencies. So getting that
equipment out has got to be a priority, especially as we try to
reopen this economy and see more density in the transportation
space, whether it is on transit, passenger rail, and quite
frankly, our freight network as well. So we are committed to
doing that.
Thank you.
Senator Udall. Thank you very much.
And let me just finally just summarize here. I do not think
there is any doubt that if the President had used the Defense
Production Act, we would be well down the line of having more
protective equipment and having people be able to go back to
work knowing that they would be protected.
Thank you, Mr. Chairman.
The Chairman [presiding]. And thank you, Senator Udall.
Senator Blackburn, will join us remotely.
STATEMENT OF HON. MARSHA BLACKBURN,
U.S. SENATOR FROM TENNESSEE
Senator Blackburn. Thank you, Mr. Chairman.
Thank you to each of you for being with us for the hearing
today.
Mr. Guillot, I want to come to you about the Port of
Memphis. Of course, we are concerned about the chassis issue
there, and I know that the Federal Maritime Commission's--the
Supply Chain Task Force has worked on this trying to address
it. So I wanted to see today what you know about that issue. We
know it is vitally important to the port and, indeed, as part
of the transportation infrastructure for the entire region.
Mr. Guillot. Thank you for your question, Senator.
My company in particular has participated in the Memphis
market. We no longer do today, but I am very familiar with the
shipping base and the needs of that community there, especially
servicing through the railroads in and out of Memphis.
We believe and have been promoting for many years now that
as the ocean lines got out of the chassis procuring and
ownership market, that they should get out of the market
completely and let the trucking community come in and service
the shippers as necessary. So we want free choice, open choice.
The current environment right now dictates that ocean lines,
even though they are not in the ownership and control of assets
in chassis, they are still controlling the procurement of them
at the expense of motor carriers and at the expense of the
shipping public. So we have been fighting long and hard to get
that rectified and that we would much prefer for the truckers
to be able to procure chassis as necessary through gray and
neutral pools that will be efficient and economical for all
users.
Senator Blackburn. Thank you for that. I think that many
people do not realize Memphis is the fifth largest inland port
that we have, and there is a tremendous amount of activity that
comes there. That is why the intermodal system is so vitally
important to that area because you have the FedEx hub. You have
the railroads that come through there. You have the port, the
pipeline that goes from the oil refinery over to the airport.
There are so many things that are infrastructure-related that
Memphis depends on.
And a source of frustration has been the chassis issue with
the port. And we are pleased that Chairman Wicker has put the
focus on having that shipper advisory committee. We think that
that is a very good thing to do.
I wanted to ask each of you just a little bit about
workforce because as we have gone through the COVID shutdown
and as we look at restart, Tennessee has been very successful
in its restart. But with that said, we have 333,000 in our
state that applied for unemployment. And I have had several in
the logistics industry mention to me that we needed to put more
attention on workforce and developing the workforce for the
logistics industry as we come out of this and looking for some
public-private partnerships.
So very briefly from each of you, if you would have just a
little bit about your thoughts on that about workforce
development, about companies working with the public sector to
provide the education necessary. And, Mr. Guillot, we will
start with you, then Mr. Bozzella, and then to Mr. Jeffries.
Mr. Guillot. Thank you, Senator Blackburn.
As you probably already know, the trucking industry was
almost 6,000 truck drivers short before the COVID-19 pandemic
entered into our environment here. With the estimate of being
close to 1 million additional truck drivers over the next
decade, we are very much concerned with workforce development.
Partnering with our Federal agencies at DOT and FMCSA and
getting private partnerships to help train and finance new
truck drivers coming into the industry is extremely critical
for us. So whereas today we may have unemployment within our
own industry, we very much look forward to the additional
training because that stoppage, if you will, of that training
even in a short period of time is going to hurt us in the long
run as far as new entries coming into the business. Our truck
driver workforce is nearly 6 to 7 years older than the average
workforce of most other industries. So we are very concerned
with workforce development and working with Federal agencies to
ease that flow for us going forward.
Thank you.
Senator Blackburn. Thank you.
Mr. Bozzella.
Mr. Bozzella. Yes. I will be brief.
As you well know, the auto industries in your state are
committed to workforce development partnering with the states
and community colleges. We do this around the country. That is
critical.
I want to come back, though, and say that by far the most
important thing right now is ensuring the health and safety of
our workers as we restart. So we have to do both of those
things, but we are committed to workforce development
especially partnering with our states.
Senator Blackburn. Thank you.
The Chairman. Thank you very much, Senator Blackburn.
Senator Baldwin joins us remotely now.
STATEMENT OF HON. TAMMY BALDWIN,
U.S. SENATOR FROM WISCONSIN
Senator Baldwin. Thank you, Mr. Chairman. I appreciate all
of our witnesses today.
Mr. Chairman, while this committee is focused on the
infrastructure that continues to provide critical services
during the COVID-19 pandemic, I would like to make sure that we
are protecting all of America?s frontline workers.
My legislation, the COVID-19 Every Worker Protection Act,
requires OSHA to issue an emergency temporary standard that
covers all workers and requires all workplaces to implement
infectious disease exposure control plans to keep our workers
safe.
Mr. Willis, you noted that legislation in your opening
remarks of your testimony, and I wonder if you can describe why
it is necessary to have enforceable, mandatory emergency
temporary standards during this pandemic to protect the workers
that you represent and if you have any anecdotal information to
provide about why the failure to have such mandatory
enforceable standards is a problem.
Mr. Willis. Well, Senator, thank you and thank you again
for your leadership on this issue.
The fact that this legislation is even needed is a
disgrace. We have been calling on OSHA from day one to do this
very early on even before COVID-19 hit, quite frankly. But the
AFL-CIO was forced to bring litigation last week against OSHA
to force them to do their job here.
Our experience--and I will just speak from the
transportation side--is if we do not have mandatory
protections, if we do not have enforcement, if we do not hold
the employers accountable, it is just not going to get done in
the right way. I have heard too many stories, whether it is on
transit, on the free rail side, especially early on, where
masks, where gloves, where sanitizing equipment was not getting
out there. And really, we believe that the only way to
consistently protect the safety of our members is to have these
standards out there.
The other component of your legislation is to make sure
that workers have whistleblower protections, that they are able
to come forward and report problems that they see in their
workplace. This committee should understand how critical those
protections are for workers across the board but specifically
in the transportation space, we have been strong advocates of
that, whether it is rail, transit, aviation, and how important
those protections are when workers have the ability to, again,
report or safety or in many situations a security violation
without fear of being retaliated against and have their job
protected.
So it is a critical issue. It is a critical legislation,
and we need to get that implemented, along with the modal-
specific mandates that Senator Cantwell, Senator Blumenthal,
and Senator Markey have been talking about here as well. So
thank you.
Senator Baldwin. Thank you.
I would like to note for my colleagues that last month the
Senate Judiciary Committee held a hearing titled Examining
Liability During the COVID-19 Pandemic. And Chairman Graham
asked all six of the witnesses that were present at that
hearing, which included business owners from Texas and North
Carolina, as well as UFCW and the National Employment Law
Project. The question he posed to them is, ``do you believe the
country would be better off if Federal agencies like OSHA
issued guidelines industry-specific as to what the best
business practices are in terms of stopping the spread of the
virus and protecting the workforce and public?''
And I will note that all six witnesses agreed that clear,
enforceable safety standards from OSHA were necessary to
provide the workers and employers with a road map to keep their
workers and customers safe as our country works to safely
reopen.
So I want to encourage each one of my colleagues on this
committee to join me in cosponsoring this legislation, COVID-19
Every Worker Protection Act. I might add that I worked very
hard on putting this together with my colleague, Senator
Duckworth, working on several iterations of it. But I would
also encourage other witnesses here today to take a look at
that legislation and work with us to protect our critical work
force.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Baldwin.
Senator Thune.
STATEMENT OF HON. JOHN THUNE,
U.S. SENATOR FROM SOUTH DAKOTA
Senator Thune. Thank you, Mr. Chairman, for holding this
important hearing today.
The COVID-19 pandemic has clearly demonstrated how critical
transportation is to the nation's economy and the important
role that millions of transportation workers across the country
continue to play in delivering supplies where they are needed
the most. These men and women have put themselves at risk of
exposure to the virus to provide frontline health care workers
with PPE and to keep store shelves stocked. They deserve the
nation's sincere thanks, and I know members of this committee
are interested in hearing today what Congress can do to better
protect the transportation workforce as we embark on a path
toward reopening and economic recovery.
Mr. Guillot, you mentioned in your testimony that despite
the recent pandemic-related decline in demand, the trucking
industry will need to hire over 1 million new drivers the next
decade to keep up with freight demand. FMCSA recently issued
waivers related to commercial learner permits and third-party
testing which ATA is encouraging the agency to make permanent.
Could you elaborate on some of the challenges currently
faced by the industry when it comes to driver training and
testing and how permanency of these waivers could be helpful
while still maintaining the highest level of safety?
Mr. Guillot. Thank you for your question.
During the pandemic, as most industries, we kept working in
trucking, but yet our training and our CDL testing facilities
for the most part have shut down with the recommendations of
the CDC and the government saying for close proximity. So we
are asking for exemptions concerning those topics and how we
can continue training to continue getting our workforce back
with a pipeline of drivers coming in. We have worked very well
together with DOT and FMCSA on exemptions such as hours of
service, and we feel very confident working with them going
forward to help us with hiring and training drivers coming into
the industry going forward.
Senator Thune. Thank you.
Mr. Jeffries, you mentioned in your testimony that COVID-19
cases among railroad employees have been low thanks to early
steps taken by the industry to keep the workforce safe and
healthy. Has the industry encountered challenges in providing
PPE to employees?
Mr. Jeffries. Thank you, Senator.
So certainly early on in the process, the supply chain was
stressed with providing those types of materials. The focus I
believe was getting the medical workers, et cetera, as it
should have been. But we have worked out a lot of those supply
chain challenges and feel that we have got a good system in
place. But that does not mean that that is going to continue to
be the case moving forward, which is why we are supportive of
legislation from members on this committee to make sure that
frontline workers continue to be a priority, whether it is
critical infrastructure, health care, other folks who are
essential to keeping the country moving.
Senator Thune. And so as a follow up to that, what steps is
the railroad industry taking to ensure that employees continue
to have adequate access to PPE and, as necessary, testing?
Mr. Jeffries. So right now, it is all being run through the
railroads themselves. DOT also did provide masks as well, as it
did to several different transportation industries that are
being pushed out to employees. So it is based on strong
relationships that have developed between the railroads and
their suppliers. Quite frankly, they have been helpful helping
related companies and other stakeholders, even my organization,
acquire PPE that is needed. But again, it is a question of
ensuring that that pipeline continues to flow in a manner that
everybody who needs protective equipment to safely do their job
continues to have access to that.
Senator Thune. Mr. Bozzella, the auto industry has acted
swiftly in response to the crisis by manufacturing ventilators
and PPE to aid frontline workers across the country. Could you
describe any challenges the industry is facing with the current
Federal emergency use authorization guidance in place that
could prevent your members from making an even larger impact?
Mr. Bozzella. Yes. Thanks, Senator.
The industry has made large numbers of PPE and medical
devices. There might be a concern if in fact the emergency
declaration is withdrawn, that the EUAs would no longer be in
effect and that these products would not be usable under
Federal guidance. That would be a bit of a concern if we are
not clear on what the pathway of the pandemic is. And so we
would want to make sure that, say for example, a truck or a
rail car filled with PPE on its way to first responders or auto
workers, you know, when the pandemic emergency declaration is
withdrawn, would no longer be usable. That would be a concern.
But so far, we are in pretty good shape.
Senator Thune. Well, we appreciate everything that you are
all doing to help out with what is a very critical supply and
demand that needs to be met. So thank you all.
Thank you all for being here and we will continue to follow
up with you, I am sure, as this pandemic continues to affect
the country.
So, Mr. Chairman, thank you.
The Chairman. Thank you, Senator Thune.
Senator Rosen.
STATEMENT OF HON. JACKY ROSEN,
U.S. SENATOR FROM NEVADA
Senator Rosen. Thank you, Mr. Chairman. Thank you, Ranking
Member Cantwell. And I want to thank the witnesses for being
here today.
I want to follow up on some supply chain issues that we
have been discussing. I represent the state of Nevada, and we
have a service-based economy that relies heavily on trucking,
rail, and air to deliver out-of-state goods to our cities and
towns. The global pandemic has shed light on the incredible
importance of the transportation supply chains. Our nation's
transportation networks help ensure that critical supplies like
food and medicine get to where they need to be even in a
crisis. So we have to be sure that these networks are
resilient.
That means, of course, ensuring the safety and well-being
of drivers and cargo workers, increasing the reliability and
the efficiency of our logistical networks and infrastructure,
and fully appreciating that each component in the supply chain
is essential to ensuring that goods reach their final
destination.
Our supply chain is an interdependent ecosystem, no one
part being more important than the other. But between recent
unexpected demand surges due to the pandemic, consumer
stockpiling of particular items--we know what those are--and
supply shortages due to factory closures, there has been
immense pressure on our nation's supply chain network that
tries to meet customer demand.
So, Mr. Guillot and Mr. Jeffries, these questions are for
you. Do you see some creative incentives that we could possibly
offer to encourage stakeholders to build resiliency in our
overall supply chain in order to minimize disruption such as a
global pandemic or even weather, wildfire, hurricane, floods
such as that goes? And what are some legislative solutions you
might recommend to Congress to help build that resiliency
especially for states like mine that rely heavily on out-of-
state suppliers? So, Mr. Guillot, I guess I will go to you
first and then to Mr. Jeffries, please.
Mr. Guillot. Thank you, Senator Rosen.
I think first and foremost the suspension of the Federal
excise tax until the end of the year 2021 will help our
industry get back into a purchasing mode. We have polled our
membership, and as much as 60 percent of our membership would
be willing to either spend more or significantly more compared
to not having the suspension of the FET through the timeframe.
We think that is very critical for us. It not only helps the
resilience of our equipment, newer, better, more
environmentally friendly equipment on the road, but it also
helps the manufacturers supplying our industry as well. So I
think that is the first and foremost point I would like to make
concerning that question.
Thank you.
Senator Rosen. Thank you.
Mr. Jeffries. Thank you, Senator, for that question.
As I sit here and consider that, you used the word
``resilient,'' and that is a word I have used a lot recently
when describing the rail industry's response. And the ability
to be resilient, as you discussed, is based on investment, and
years of investment in the rail industry have put it in a place
where it can respond quickly and adjust. But really I think we
are looking at a position where as we look toward the future,
all of our members have crisis response plans, even pandemic
response plans that allow them to flex and adjust their
operations to meet those needs.
But as we continue to move forward and consider what might
be over the horizon, I think embracing technology, as we go
forward, to provide as visible supply chains as possible, to
create a flexible, just-in-time supply chain across all modes.
Of course, that is based on investment, as I said, but it is
also based on embracing new technologies and demonstrating new
ways to meet our mission of serving our customers and
communities in which we operate.
Thank you.
Senator Rosen. Thank you for that.
Mr. Willis, I have just a short time. I am going to go very
quickly. I want to just ask about PPE. We lack a national
strategy to ensure that we have the proper types, adequate
amounts of PPE. Would you agree that a national strategy is
important to meet the goals here?
Mr. Willis. Yes. As discussed earlier, I absolutely agree
with you that it has to be a national strategy. It has to be
led by the Federal Government. There are significant needs that
have been met. I will concede that. But we have got a long way
to go. And again, as we bring more density to our
transportation system especially on the passenger side, whether
it is public transit, rail, aviation for sure, we are going to
need more of that equipment, and a national coordinated
strategy absolutely has to be implemented.
Senator Rosen. Thank you. I appreciate you all for being
here. Stay safe and healthy.
The Chairman. Thank you, Senator Rosen.
Senator Capito, you have been keeping a lonely vigil at
that end of the table there.
STATEMENT OF HON. SHELLEY MOORE CAPITO,
U.S. SENATOR FROM WEST VIRGINIA
Senator Capito. It is lonely down here, Mr. Chairman.
The Chairman. You are recognized.
Senator Capito. But I did not want to be remote. You know
what I mean?
The Chairman. You never have been.
Senator Capito. Thank you.
I want to thank all of you for being here and I am very
interested in your testimony.
Just anecdotally I think one thing that we have not touched
on that certainly every state is experiencing and that is the
downturn in State revenue shortages when it comes to fuel tax
or DMV fees and other things and then the expenditures that our
state DOTs have had to take on in terms of making sure highway
workers are safe. As you know, a lot of times those are the
biggest employers of a state besides the department of
education. For instance, in West Virginia our revenue on our
motor fuel has been down 37 percent.
Think about this as I ask my first question, and my last
question is going to be, if I can get to it, is as you look
over the next 3 months--I know it is hard to predict, but are
you looking for upturns, downturns, assuming that we can still
remain in our opening mode? So that is going to be the last
question I ask.
And I also want to put a plug in for the highway bill. I
understand the Chairman has already spoken to that. That is
something that came through my Subcommittee over on EPW and is
going to come through this committee as well. But there is
going to be an issue with this match from our State governments
to be able to move forward with this.
Mr. Bozzella, I wanted to ask you because I talked with a
manufacturer of automobiles just yesterday, and they are fully
open and they are producing and they say their sales are really
pretty good. But one of the things they are concerned about is
the supply chain, a different aspect of it than what Senator
Rosen was talking about. And that is, they employ more than 500
people and yet they have had this downturn and they do not have
the capital to really provide the supplies for these
manufacturers as they start really expanding their
manufacturing growth.
Have you experienced that or heard that in the industry,
and what might you suggest?
Mr. Bozzella. Very much so, Senator. This is a big concern,
and I think it is a potential real challenge for a successful
and safe restart to the industry. Two-thirds of automotive
employment in the supplier sector is small and medium-sized
businesses, and they are not sufficiently capitalized right
now. So I think a focus on liquidity for small and medium-sized
suppliers is really critical here.
If we happen to, to your last question, have a bit of an
uptick and then a downturn and then we are forced to slow
production or stop production again, this could be catastrophic
for suppliers. So I do think this focus on liquidity is going
to be important for suppliers.
Senator Capito. Thank you.
Mr. Jeffries, do you have a response to my last question?
Because it does not look like I am going to have much more time
for anything else.
Mr. Jeffries. The final question----
Senator Capito. The question being, if you look over the 3
months--you know, you are hearing we think it is really bad
now, but it is going to get worse. Is it or not?
Mr. Jeffries. Right.
Senator Capito. What is your projection?
Mr. Jeffries. So what I hope is the trough of rail traffic
was about a 25 percent year over year decrease, based on our
weekly reports, we have seeing that number improve slightly.
There is not going to be a dramatic spike. But, for example,
given the number of autos and auto parts we move, we were at a
90 percent traffic decrease in auto parts. We are now at about
a 60 percent. So we have seen that number come up, and that is
coming up in other areas. As China opens up and we have
containers coming through the ports, intermodal should continue
to start to increase. I am definitely not going to call them
green shoots, but I think we are cautiously optimistic about
that gradual increase.
Senator Capito. Good.
Mr. Oehler, I do want to ask you that question, but I have
a quick question too. With the EPA's release of their final
rule on the implementation of the 401 Clean Water Act where
certain states have been overshooting their authorities, as I
believe--and that has certainly impacted pipelines--can you
give from your perspective how the EPA's final rule will help
your members?
Mr. Oehler. Thank you, Senator.
Yes. We support the final rule. We were pleased to see it
finalized.
From our standpoint, the investments that we make--we have
had a lot of discussions about infrastructure. The investments
that our members are making are many times billion dollar-plus
investments. And so for us what is critically important is a
timely and predictable permitting process. And I think one of
the things that we are seeing with this particular permit that
you are referencing was some agencies were delaying the permit
longer than they would be allowed to under the statute, what
the statute calls for. Some agencies were being expansive in
terms of how they would apply that particular permit and not
really focus on the relatively narrow issues that it is
supposed to be around.
So we welcome the rulemaking. We welcome environmental
permitting. We are confident that we can construct pipelines in
an environmentally safe manner, but we are looking for that
predictability.
Mr. Willis. Senator, if I can just add.
Senator Capito. If you want to talk about the future.
Mr. Oehler. The future, certainly. A demand for
transportation services has largely persisted in our industry.
There has, of course, been some softening in the energy
markets. I think you have probably seen that in your home
state.
Senator Capito. Yes, I have.
Mr. Oehler. Perhaps a little bit longer than three months
out, we are hopeful that the economy can really ramp up to
where it was. And our job is to move energy to people who need
it. And so as the economy grows, that demand for energy will
come back and you will see us respond.
Senator Capito. Thank you. I think my time is up.
The Chairman. Thank you, Senator Capito.
Those who have signed up before the gavel are Sinema, and I
do not believe she is at the remote facility right now. Senator
Sinema, are you there?
[No response.]
The Chairman. Senator Scott, are you there?
STATEMENT OF HON. RICK SCOTT,
U.S. SENATOR FROM FLORIDA
Senator Scott. I am here.
The Chairman. Good. Senator Scott, you are recognized.
Senator Scott. Thank you. Thank you, Mr. Chairman, for
holding this meeting.
I want to thank all of you for what you do and I want to
thank your industries for what they are doing especially during
this time of crisis. My father was a truck driver. It is a
tough job. He was gone a lot. At that time, it did not pay
much. Now it has got a lot better pay.
So, for Mr. Guillot, what do you think the changes are
going to be for people like my dad, the over-the-road truck
driver going forward? How has their life changed, and is there
anything that we ought to be doing to be able to improve how
they do their jobs and what type of life they have?
Mr. Guillot. Thank you for your question, and thank your
father for serving our industry for such a long time there.
Like so many of us, our families have been involved in trucking
throughout our lifetimes and your father, and thank him for
driving a truck.
As far as our industry going forward, infrastructure is
critical for us to be able to invest more in infrastructure.
Our congestion on our highways is certainly critical to the
lives of our truck drivers on the road. We have found with the
pandemic in surveys that we have taken, a lot of our
bottlenecks across the country--it might have been brought down
through peak hours to as little as 10-15 miles an hour on
average--is averaging almost at grade speed right now. So I
think that just reinforces the demand and the need for
investment in infrastructure going forward, and that would help
truck drivers such as your father as far as the quality of life
on the road. Congestion is certainly a big task of ours.
And certainly the protection of our drivers' health and
well-being on the road with this pandemic and learning from
these experiences here and what can we do in the future to get
equipment out to them as quick as possible, as we are now, but
to ensure that they have got a good supply chain going forward
with that type of issue.
Senator Scott. Thanks.
I think all of us would agree that we need to make
investments in infrastructure. What is difficult this year we
are going to have close to a $4 trillion deficit and we are
going to have $25 trillion-plus worth of debt. So it is going
to make it hard to figure out how we continue to invest in
infrastructure. I did it when I was Governor. And trying to
figure out how do you get the budget under control up here so
we can continue to invest like we did when I was a Governor.
So in addition to infrastructure, is there anything else
that you think that Congress can be doing that would make the
lives of the over-the-road truck drivers better?
Mr. Guillot. As far as Congress is concerned, one of the
issues that we ran across during the pandemic is the different
districts, you know, as we cross state lines, as we cross into
smaller communities, the inconsistencies of the requirements
going in and out of those facilities.
We also ran across the availability of just restroom
facilities and fueling facilities as the pandemic hit us
initially on, being able to have a truck driver pull over at a
rest area that may have been closed. The state of Pennsylvania
closed all rest areas. We worked with the stakeholders in that
particular state, as well as our state affiliates, to try and
help these things out. And certainly I think we need to learn
from what we have done in the last couple months and apply it
to going forward in the future.
Senator Scott. Thank you.
Thank you, Mr. Chairman.
The Chairman. Thank you very, very much.
Now, I have got Senator Tester. Is he with us remotely?
Jon, are you there?
[No response.]
The Chairman. OK. It may be that Senator Blumenthal will be
coming back in a moment.
I am told that Senator Duckworth is waiting remotely.
STATEMENT OF HON. TAMMY DUCKWORTH,
U.S. SENATOR FROM ILLINOIS
Senator Duckworth. I am here, Mr. Chairman.
The Chairman. You are recognized for five minutes, Senator.
Senator Duckworth. Thank you, Mr. Chairman.
I have long held the belief that building up our
transportation infrastructure is a much more effective and
sustainable mechanism for our economy and building the middle
class than any of the trickle down economic policies Congress
has considered in recent years. Transportation investments will
play a key role in rebuilding our economy if we can first
advance meaningful relief for State and local governments that
are responsible for 75 percent of our infrastructure
investments.
I look forward to working with this committee to develop
meaningful legislation that invests in our public
transportation and freight networks while improving and
promoting safety across all modes.
But first, the Senate must consider the House-passed HEROES
Act to reinforce our state and local partners and build a
bridge from crisis relief to economic recovery.
Mr. Willis, it is good to see you again even remotely. I am
accessible but remote. My first question is for you and about
the availability of COVID-19 testing for our essential
workforce.
I remember President Trump speaking at CDC headquarters
just a couple months ago on March 7 and telling the cameras--
and I quote--anyone who wants a test can get a test. That is
our President speaking. As we all know, that was demonstrably
false. 3 months later, it is still difficult for Americans in
many areas of the country to receive COVID-19 testing.
Experts told Congress that we should be conducting 900,000
tests every single day to reopen the country safely. Yet, our
current capability is only one-third of that.
Until a vaccine is developed, essential transportation
workers who are keeping our economic engine turning during
these uncertain times should have ready access to COVID tests
like our first responders and our most vulnerable neighbors.
Mr. Willis, I appreciate you mentioning COVID-19 Every
Worker Protection Act that Senator Baldwin also mentioned. I do
want to share your frustration with OSHA's current pace on
actions to protect workers. We can all applaud the Department
of Transportation's announcement last week to send more than 15
million face coverings to our transportation work force, and we
have already had that discussion today about trying to get the
PPE. But I am curious about what essential workers are telling
you about the availability of testing and its cost to them, as
well as our discussion so far of PPE.
Can you discuss that? First, the testing, how much it is
costing people. Can they get it when they need it? Is it too
expensive? What is going on there. And then if you can touch on
PPE one more time I would appreciate it. Thank you.
Mr. Willis. Well, thank you, Senator.
Look, public health officials and our members tell us that
a key to getting this economy back up and running and getting
our transportation systems at full capacity is adequate
testing. That is not a cost, quite frankly, that can be borne
by individual workers. We have to find a way for the government
to aggressively come in and help fund that.
You know, again, for transportation workers today--many of
them--we are going to work and we are being exposed. So this is
not just about just opening up the economy. We need to know if
our members are safe to go into the workplaces every day and to
protect themselves from their colleagues, from passengers, and
to protect their families.
Transportation agencies need to coordinate at the state and
local level to find these tests and to get a steady supply
chain. I talked about some of the issues that I think this
President should be more in front of early on in this crisis,
both on the testing and personal protective equipment. And I
think this Congress through these hearings but more importantly
through legislation has to really hold their feet to the fire
to lead both on testing and PPE.
So thank you for the question but, more importantly, for
your leadership here. It is critical.
Senator Duckworth. Thank you.
Mr. Chairman, every industry represented here today at one
time or another has been to my office and I am sure to your
office as well to share concerns about 50-state patchwork
regulations. Yet, our President's new testing plan for COVID-19
doubles down on his previous assertion that it should be the
responsibility of states and municipalities not the Federal
Government to identify, procure, and distribute testing
supplies and coordinate contact tracing efforts. I am thankful
that our Governors and mayors and especially Governor Pritzker
and Mayor Lightfoot in Illinois have stood up in the absence of
Federal leadership.
Mr. Jeffries, is it easier or more complex for your members
to coordinate with each state and municipality as they operate
in on testing and tracing efforts?
Mr. Jeffries. It is certainly easier when we operate with
one Federal guideline.
Senator Duckworth. Thank you.
Mr. Guillot, your members are spread across the Nation and
continually crisscross various jurisdictions. Are your members
able to coordinate quickly and easily with various states and
cities on testing and tracing?
Mr. Guillot. I think it is an ongoing challenge, Senator
Duckworth. We are in support of more testing. We are in support
of more--just the health needs of our workers, and crossing
state lines does make it problematic to be consistent in our
service and our health with our employees.
Thank you.
Senator Duckworth. Thank you.
I think it is clear that the President's 50-states approach
is not efficient and not effective in our transportation
industry as opposed to what should be happening, which is a
unified Federal effort.
I am out of time. Thank you, Mr. Chairman.
The Chairman. And thank you, Senator Duckworth.
Senator Lee.
STATEMENT OF HON. MIKE LEE,
U.S. SENATOR FROM UTAH
Senator Lee. Thank you very much, Mr. Chairman. Thanks to
all of you for joining.
Mr. Oehler, I would like to start with you. During the
global COVID-19 pandemic, we know that the oil and gas industry
has been hit hard. We also know that during that time, your
companies, America's natural gas companies, have been on the
front lines working hard to try to ensure that Americans can
have energy provided to their homes and so that our economy can
continue to operate.
We also know that there is something of a shortage of
pipelines in our country, particularly in some parts of the
country, including the northeastern United States and places
like Puerto Rico. We could solve this problem, of course, by
allowing ships to carry LNG along the U.S. coast.
The problem is, of course, the Jones Act. The Jones Act,
which is about to celebrate its 100th birthday--I would say
that is 100 birthdays too many for the Jones Act--creates a
significant problem here in particular. The Jones Act, of
course, is this law that restricts shipping between U.S. ports
to only those vessels that are U.S.-built and U.S.-flagged and
U.S.-crewed.
Now, that might sound fine enough at the outset, and maybe
in some instances there are some people who would be OK with
it. I personally do not see any need for it anywhere. I think
it is a bad law.
But no matter what, I think it is ridiculous to make the
Jones Act apply even in those areas, even in those marketplaces
where there is no Jones Act-compliant vessel that is capable of
carrying something, say, for example, LNG.
As a result of this, predictably U.S. markets have had to
turn to other sources where they would otherwise be able to
turn to a U.S. supplier. In many instances, they have had to
import natural gas from foreign countries. Now, not just any
foreign countries, but in many instances, it has had to be
countries that are our geopolitical adversaries, countries like
Russia and like Venezuela, rather than purchasing LNG from
American suppliers.
So my question for you is in an unprecedented economic
time, one in which Americans are facing job losses and other
significant economic and personal challenges, would it not make
sense for us to take steps to ensure that oil and gas companies
can meet U.S. demand before potentially forcing the U.S. into
the arms of geopolitical adversaries like Russia and Venezuela?
Mr. Oehler. Thank you for that question.
I agree with what you are saying. I mean, I think that all
of us in this room have spent probably a great deal of our
careers in public policy thinking about the United States'
dependency on foreign countries. And in a very short period of
time, we have been able to turn that around. We are now the
world leader in energy production.
You mentioned the Northeast. Something that comes to my
mind is we have one of the most prolific natural gas supply
basins in Pennsylvania, which is a short drive from those
northeastern States, and it is a supply basin that is creating
jobs. It is domestic production. We have got very rigorous
regulations surrounding that production and then
transportation. But sometimes it is difficult to get new
pipeline capacity built in order for those regions of the
country that do not have that supply to take advantage of it,
and then they are forced to turn to foreign suppliers or even
fuel sources that are not as carbon-friendly as natural gas is.
Senator Lee. In that circumstance, in light of what you
have described, would a temporary waiver of the Jones Act at
least not allow natural gas companies to be able better to
access American markets that are otherwise difficult or in some
cases impossible to access due to the Jones Act or in some
cases because of other infrastructure challenges?
Mr. Oehler. Senator, on this particular issue, the Jones
Act, as an association we have not looked at that and taken a
position on it. We certainly have heard about it and heard the
concerns that you have articulated today. And so what I would
like to do is talk to our members and get back to your office
on that legislation.
Senator Lee. That would be wonderful. And if you would like
me to visit more with you or with any of your members, I would
be honored and pleased to do that. I think your organization,
in particular, is one that really ought to focus on this and
could be a voice of clarity here particularly if we are talking
about this narrow area.
Why on earth would we want to be strengthening the hands of
oppressive regimes in Russia and in Venezuela when we do not
even have access to a single Jones Act-compliant vessel that
could take care of these markets? We have got an abundance of
natural gas available in this very country. This is exactly the
kind of crony capitalism that we should be on the lookout for.
Now, look, maybe 100 years ago, 100 years ago Friday when
they passed this ill-fated, ill-conceived legislation written
by the devil himself, maybe they had some good ideas. I do not
know what they were. I do believe that those who are defending
it to this day, especially in these extreme circumstances like
what we are describing here, are being disingenuous, and I
think it is time the American people understand it is not just
American businesses that are being harmed. It is everyday
consumers, and it is everyday American citizens whose safety
and national security is jeopardized by our shameless
commitment to a crony capitalist legal regime.
Thank you very much.
Mr. Willis. Well, Senator, I have to comment here.
As someone that does strongly support the Jones Act, we
worry about foreign dependence whether it is on our shipping or
whatever else. We start to close down U.S. maritime, we start
to allow flag of conveniences to further denominate in this
space. We do not supply good U.S. mariner jobs. When we need
sealift capacity in times of war, in times of national urgency,
those foreign countries, those foreign vessels with foreign
crews I promise you will not be there.
This hearing is about protecting and promoting frontline
workers. There is no better way to do it than protecting,
promoting, quite frankly expanding the Jones Act. And on this
100th anniversary on Friday, we will celebrate it as a landmark
legislation that this committee and many on this committee
support.
Thank you.
Senator Lee. Mr. Willis, I would ask you. I understand my
time is expired. But how on earth can you justify--regardless
of whether you believe the Jones Act is a good idea, which it
is not, how on earth can you justify the application of this
law forcing Americans to buy natural gas from Venezuela and
Russia when there is not a single Jones Act-compliant vessel in
the United States capable of carrying this commodity that we so
badly need? How can you justify that?
The Chairman. Senator Lee, we are going to ask the witness
to take that for the record, and your 8 minutes has expired.
Senator Blumenthal.
STATEMENT OF HON. RICHARD BLUMENTHAL,
U.S. SENATOR FROM CONNECTICUT
Senator Blumenthal. Thank you, Mr. Chairman.
Before I begin my question, I just want to note that the
burden of this pandemic has fallen with extraordinary weight on
our surface transportation system. We see it in the Northeast,
the plummeting of passenger rail usage on lines like Amtrak, on
commuter rail like Metro-North, and strikingly on the motor
coach transportation companies. I am thinking of a company
known as DATTCO in New Britain. These entities are struggling
as they confront unprecedented financial and logistical
hardships.
On Monday, Amtrak resumed modified Acela service on the
Northeast Corridor, the only profitable or at least the most
profitable route for Amtrak and one of the busiest. Our
national passenger railroad faces a 95 percent decline in
ridership and ticket revenue. And it recently announced plans
to cut its workforce by about one-fifth in the next Fiscal
Year. This kind of plummeting usage is a threat to our national
security.
And likewise commuter rail services, Metro-North, for
example, have seen a decline in revenue in ridership, and they
are now grappling with the same kind of logistical difficulties
in our tri-state area of New Jersey, New York, and Connecticut.
And most of the 3,000 companies that make up the United
States motor coach industry remain shuttered. It is nearly
100,000 employees are unemployed and almost the entire fleet of
36,000 buses. That is 100,000 employees, 36,000 buses, all
idle.
And as I mentioned, there are family owned small, multi-
generation businesses like DATTCO in New Britain that face a
very uncertain future.
So I hope that in one of our next hearings, Mr. Chairman,
we hold on surface transportation we will devote attention to
the issues faced by these industries.
Earlier today, I introduced the Essential Transportation
Employee Safety Act of 2020. I want to thank Ranking Member
Cantwell and Senator Markey for their support. Among other
provisions, this bill would implement personal protective
equipment and cleaning, disinfection, and sanitation
requirements for owners and operators of equipment or
facilities used by certain transportation employers during this
public health crisis.
And I want to thank Senators Baldwin and Duckworth for
their efforts on the COVID-19 Every Worker Protection Act of
2020. I am proud to support that legislation as well. We need
to protect all our workers, everyone who continues to be on the
job during this pandemic, from exposure to COVID-19 regardless
of the industry. And, frankly, the absence of direction of OSHA
only heightens the urgency of this legislation.
So let me ask you, Mr. Willis, if I may. First of all, I
could not agree with you more that strong Federal mandates are
absolutely necessary to provide frontline transportation
workers with protections to keep them safe.
Can you please expand on how the current pandemic affects
your members and some of the on-the-job challenges that they
face? What is it like for them to go to work facing the
shortages of this equipment and the other challenges that they
have?
Mr. Willis. Well, thank you, Senator.
You know, I would say that our members--I do not like to
use this word--but they are scared. They are scared to expose
themselves. They want to know that more is being done to
protect them and their families. And they are scared about
their jobs, about the economic instability that we have already
seen in these sectors of our economy and really, I think,
challenging times ahead that this Congress has to respond to in
an aggressive way.
You mentioned the motorcoach side, and it has not been
discussed yet today and it is an important one. We represent
drivers at many of those companies not only on the inner city
but on commuter bus, on tour bus in a number of cities. They
have been essentially shut down. They are in need of specific
assistance and something I think this committee needs to
seriously consider.
So we need to provide some safety assurances, some economic
assurances to our members because, as I have said, they have
got some real anxiety as they go to work every day.
Senator Blumenthal. Thank you.
Thank you very much to all of you for being here, and
thanks for your leadership, Mr. Willis. Thank you.
The Chairman. Thank you, Senator Blumenthal.
Let me ask this. Mr. Bozzella, on May 12, Representative
Walden and I sent a letter to the automotive industry asking
how it is using innovation in response to the pandemic.
Senators Thune and Peters, members of this committee, have been
championing autonomous vehicles legislation, and I have tried
to be supportive of that.
The National Highway Traffic Safety Administration, NHTSA,
has highlighted some of the ways new innovations are being used
in response to this COVID crisis, including the use of
automated driving systems to transport COVID-19 tests and ride-
hailing vehicles to transport essential goods such as medical
supplies, mail, and groceries.
How do you see the COVID-19 pandemic affecting the
automotive industry's focus on innovative technologies of the
future?
Mr. Bozzella. Senator, Mr. Chairman, there is a tremendous
amount of innovation going on as a result of COVID-19. Behind
me is a table filled with ventilators and respirators and other
materials that auto industry companies innovated to develop to
respond to the crisis.
Looking forward, what we can also see is the types of
innovations that you are talking about: highly automated
vehicles that can do contactless delivery. We are already
seeing that demonstrated during the pandemic.
What we really need and I think that this----
The Chairman. Where?
Mr. Bozzella. Where are we seeing that? We are seeing it in
California and other locations where there are already pilots
underway for--highly automated vehicle pilots already underway.
What I think this committee can focus on is creating a
Federal framework that will allow for more widespread testing
and deployment of these vehicles, as long as they can be
determined to be as safe or safer than the vehicles that they
replace. I think that is a really important effort for the
Committee and for the Congress to take on because it does set
up this innovative future that I think the pandemic speaks to
right now.
The Chairman. Anybody else want to jump in there?
Mr. Willis. Yes. Let me just add. We have been involved in
the AV discussion in front of this committee, and I think that
it is something to talk about.
We should not, though, get in front of the real safety
challenges that I think this technology still confronts. If we
are going to move forward with pilots, if we are going to move
forward with early deployment of AVs and highly autonomous
vehicles, NHTSA has got to do a better job both as this
technology is tested on our roads and again early deployment,
you know, really making sure and getting in there that, again,
these are safe technologies. And quite frankly, there is also a
worker and job component here that I think we need to think a
little bit more about before we get too far along.
The Chairman. Mr. Willis, has that been problematic in
California and places where pilots are already well underway
and ongoing?
Mr. Willis. You know, I think the NTSB has spoken to this
on the crash that occurred in Arizona. We would echo that, that
there was really a lack of regulatory oversight by NHTSA. And
quite frankly, in that situation I think the company is doing
better. But we have to see more robust real regulation here
from NHTSA before we are comfortable with looking at these AV
pilots and testing schemes.
The Chairman. OK. Well, if anybody on the panel wants to
elaborate on the record on that issue, please do so.
Mr. Bozzella, I have got two vehicles that have OnStar. I
do not know what the various brand names are, but subscription-
based communication systems. Someone told me yesterday in
getting ready for this hearing that actually those systems
amount to WiFi hotspots. Conceivably at the remotest place in
the country, I could take my books out to the car and have WiFi
there. Am I correct there, and is this a point that is even
worth making? Would you comment to that?
Mr. Bozzella. Yes, Mr. Chairman, it is a great point. And
what we are seeing during the pandemic is the use of these
subscription telematic services and their embedded WiFi to
actually provide WiFi hotspots so students can continue to
learn remotely.
These systems represent an enormous opportunity for more
innovation here in the United States and, frankly, leadership.
And I think that in addition to WiFi hotspots, what you are
seeing is automated emergency services. The vehicle can
automatically notify first responders in the case of a crash
even if the driver is unable to do so him or herself. These are
lifesaving, groundbreaking technologies that we are seeing
brought to market, and there are tens of millions of vehicles
on the road with these technologies today.
The Chairman. Tens of millions. To what extent are new
vehicles coming off the assembly line equipped with this? What
percentage of American-made automobiles in 2020 equipped with
these systems?
Mr. Bozzella. Yes. More and more every day. And I will get
back to your staff, Mr. Chairman, with a specific percentage of
new vehicles.
The Chairman. Put that on the record, if you do not mind.
Mr. Bozzella. I will do that. It is a fairly high
percentage of new vehicles now today.
The Chairman. How cost effective is it?
Mr. Bozzella. It provides great service to customers for a
reasonable subscription. We are talking about lifesaving
services, automatic connections to first responders,
conveniences, navigation systems. I think this is really what
people want when we talk about intelligent transportation
systems, infotainment, and telematics and safety.
The Chairman. Thank you very much.
If you would hold for a moment.
[Pause.]
The Chairman. I do not think we have any other members who
are in line. And so I want to thank our witnesses. A very
interesting hearing, very interesting subject matter, and very
interesting presentation.
And, yes, I knew about the exhibit in the back of the room,
and I should have mentioned it beforehand. So those who are
still in the room--and many staff members are still here--are
welcomed and encouraged to stop by the table on the way out and
see that exhibit. And thank you for that.
The hearing record will remain open for two weeks. During
that time, Senators are asked to submit any question for the
record. Upon receipt, the witnesses are requested to submit
their written answers to the Committee as soon as possible, but
by no later than Wednesday, July 1, 2020.
So thank you to the witnesses for appearing today.
And this hearing is now adjourned.
[Whereupon, at 4:37 p.m., the hearing was adjourned.]
A P P E N D I X
American Association of Port Authorities
June 1, 2020
Hon. Roger Wicker,
Chairman,
Committee on Commerce, Science, and Technology,
United States Senate,
Washington, DC.
Dear Chairman Wicker,
We appreciate the work being undertaken by the Senate and by the
Senate Committee on Commerce, Science, and Transportation regarding the
impacts of COVID-19, and further appreciate the opportunity to share
our thoughts on how this crisis has impacted ports and the maritime
industry.
The American Association of Port Authorities (AAPA) is the unified
voice of the seaport industry in the Americas, representing 78 public
port authorities in the United States. Our nation's seaports deliver
vital goods to consumers, facilitate the export of American-made
products, create jobs, and support local and national economic growth.
In fact, the total economic value generated by cargo activities at U.S.
coastal ports accounts for $5.4 trillion--roughly 26 percent of U.S.
GDP.
Since the beginning of the COVID-19 pandemic, AAPA has remained in
regular contact with our members to monitor the impact of the pandemic
and to give our member ports the opportunity to share best practices
with one another. In response to your questions on insights and
experiences from our Nation's ports, we offer the following responses.
1. What impacts have your members seen from COVID-19 on our
transportation networks and supply chains, and how have they
responded to these impacts?
AAPA membership comprises ports large, medium, and small, and there
is a saying in the industry that ``if you've seen one port, you've seen
one port.'' Accordingly, each of our members has been affected in
myriad different ways by COVID-19.
However, we have seen containerized cargo decline by 18 percent in
March over the same period in 2019. These declines are not limited to
any particular geographic region, and container cargo volumes have
declined across each and every region represented by our Association.
Ports have seen a significant uptick in blank sailings, or cancelled
vessel calls, which can result in significant revenue losses.
While data is still incoming for April and May, initial indications
show declines of 20 percent to 25 percent in those months over the
prior year.
As automobiles have worked their way through the global supply
chain, following the shuttering of auto production facilities in the
Americas, Europe, and Asia, we have seen major reductions in roll-on/
roll-off cargoes. One West Coast port has experienced a 90 percent
reduction in roll-on/roll-off cargoes, with only one or two ship calls
expected this month compared to a typical average of four ship calls
per week.
Bulk cargo movements have declined 15 percent to 25 percent over
the same period in 2019 at two of the largest bulk-handling cargo ports
in the United States. Bulk cargo movements, which include agricultural
products and energy commodities such as oil and coal, as well as
chemicals, are down 27 percent compared to 2019 at one Gulf Coast port.
Tourism at our Nation's ports has completely evaporated. This has
resulted in massive P&L impacts at ports heavily invested in this
business. Indications are that at certain South Atlantic seaports,
overall business is down between 50 percent and 80 percent.
And small ports around the country have been especially hard hit.
At these ports, there are often only one or two types of cargo being
handled. If demand drops, port operations can nearly cease.
Despite these significant declines in business, ports have
continued operations, kept their doors open, and continued to
facilitate the movement of goods and cargo with the help of critical
supply chain workers.
Even as operations continue, and in part as a result of the
financial challenges facing some ports due to COVID-19, we are
beginning to see furloughs and layoffs in the maritime industry and
supply chain, including at some ports.
2. What are your expectations for how freight networks or the supply
chain may continue to be impacted in the near term? What
impacts do you anticipate in the long term?
While projections vary, our members do not anticipate the
resumption of pre-COVID-19 cargo volumes until FY21. Unless and until
U.S. consumer demand increases, cargo volumes are expected to remain at
levels lower than they were pre-COVID-19.
While ports work to ensure the safe and reliable delivery of goods
moving through their terminals, ports have indicated that it may be
necessary to forgo project planning and critical investments in port
infrastructure should cargo volumes remain at current levels and should
the economic recovery from the pandemic progress slowly.
3. How have critical infrastructure employees been affected during
the COVID19 crisis while performing their duties, and what
steps have your members taken to protect them?
As national gateways for commerce and travel, seaports do not have
the option to close. They do not even have the option to voluntarily
slow down throughput because of the back-up it would cause in supply
chains, sometimes for critical goods like food, medicine, and medical
devices. Therefore, seaports have worked closely to equip and protect
their employees as well as others who work on the port footprints, such
as dockworkers, pilots, police, government regulators, dray truckers,
and other mariners.
To protect their employees and partners, ports have taken measures
that include setting up priority screening and testing with local
health providers; setting up health screening at port ingresses;
providing medical-and non-medical grade protection through new supply
chains locally and internationally; staggering port police shifts to
increase the number of active-duty but at-home police to have a reserve
of officers in case of outbreak; and codifying extensive protocols for
ship-shore interactions and crew changes in a way to minimize social
contact while efficiently processing cargo and, in extreme cases,
evacuating cruise ships.
4. The U.S. Department of Transportation has a number of authorities
that can be utilized to respond to extraordinary and
unanticipated events. How has the use of these authorities
affected your members during the COVID-19 crisis, and are
additional authorities needed to provide additional support to
the transportation sector in unforeseen circumstances?
To our knowledge, MARAD has not invoked extraordinary authorities,
although the Administration has established regular, helpful
information-sharing calls. Neither, too, have any of our other main
Federal stakeholders invoked emergency authorities, such as CBP and
U.S. Coast Guard. Indeed, the U.S. Coast Guard already had strong
requirements in place well before the pandemic regarding sick mariner
reporting, and the seaports follow these regulations to the letter. We
have, however, seen that the Coast Guard now relies heavily on the
local CDC's determinations on vessel disembarkment and the like. The
seaports would benefit from more Washington-led guidance as opposed to
local office holders making these determinations.
One difficulty that the public port community has faced is with the
allocation of aid to ports in need. While some ports are state, city,
or county departments and thus eligible for aid under previously passed
COVID-19 response legislation, port authorities have to date been
unable to access any substantial relief provided by Congress. Airports
were provided relief, transit agencies were provided relief, and
establishing a vehicle to provide relief to our Nation's ports is
critical to ensuring that these entities are able to maintain a state
of readiness, and that they are able to continue to function as engines
of economic activity.
Accordingly, AAPA requests that Congress allocate $1.5 billion in
economic relief to our Nation's public seaports. This request is not
about recovering lost revenue; but rather about ensuring that ports are
able to make bond and other debt instrument payments, keep pace with
the accelerating costs of protecting workers and keeping the workplace
sanitized, and ultimately ensuring that America's commercial seaports
and port workers maintain a state of readiness for the eventual
economic recovery.
Thank you for consideration of AAPA's responses to this inquiry.
America's seaports stand ready to help the Committee however possible
as it considers how to best respond to the COVID-19 pandemic.
Sincerely,
Christopher J. Connor,
President and CEO.
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Diesel Technology Forum
Frederick, MD, June 2, 2020
Hon. Roger Wicker,
Chairman,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Hon. Maria Cantwell,
Ranking Member,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Chairman Wicker and Ranking Member Cantwell,
On behalf of the Diesel Technology Forum, we respectfully submit
this statement on the matter of the Committee's June 3, 2020 hearing
titled The State of Transportation and Critical Infrastructure:
Examining the Impact of the COVID-19 Pandemic.
During the last two months the trucking and supply chain industries
have been called on to deliver essential supplies, food, medical
devices, and personal protective equipment in every corner of the
United States at levels not seen before. This tremendous response to
the COVID-19 pandemic has been delivered largely by diesel-powered
trucks, as diesel powers over 95 percent of all tractor trailers in the
U.S., and over 75 percent of all commercial vehicles. With nationwide
ready access to fuel, service and parts, diesel is the proven,
available, reliable, and efficient technology of choice that enables
the Nation's trucking industry to deliver under these extraordinary
circumstances.
As America gets moving again and as policymakers consider
additional recovery or economic stimulus packages, there are two
policies Congress should consider that boost the economy while also
helping to sustain levels of lower emissions observed during the
pandemic. Each will aide both small businesses and independent truckers
and enhance the productivity and efficiency of more trucks on the road
today.
A temporary suspension of the Federal excise tax (FET)
through 2021 will accelerate the turnover to newer, more
efficient, lower-emission and more productive vehicles. The FET
adds on average about $22,000 to new commercial truck
purchases. Suspending it will spur new commercial truck sales,
boost domestic truck manufacturing, support local truck dealers
and provide owners of older and higher emitting commercial
vehicles greater opportunity to purchase new much cleaner, more
efficient and safer models. As a result, significant and
immediate term clean air benefits can be realized particularly
in communities located in designated environmental justice
areas.
Increased funding for the Diesel Emission Reduction Act
(DERA), an established and proven, bipartisan clean air
incentive program that delivers $13 dollars of clean air and
public health benefits for every $1 invested. The program
enables the modernizing and upgrading of a broader range of
older, higher-emitting engines, vehicles and equipment or
replacing older models with new cleaner options. A boost in
funding above last year's appropriated amount of $87 million
will open the door of opportunity for a wide array of vehicle,
engine, and equipment owners around the country.
Multi-year reauthorization of surface transportation
spending programs can address freight bottlenecks, reduce
congestion and improve air quality by reducing commercial
vehicle idle times.
Taken together, these strategies will put more new technology on
the road quickly and help generate immediate air quality benefits,
particularly for sensitive communities in designated environmental
justice areas. They will also help spark domestic manufacturing and
employment as the U.S. is home to much truck, equipment, and engine
manufacturing.
Introduction
By way of background, the Diesel Technology Forum is a not-for-
profit educational organization whose members include leaders in diesel
engines and equipment, vehicle manufacturers and fuel producers. Our
organization serves a primary role of education along with the
collection and commission of research to raise awareness of the
environmental performance of the newest generation of diesel
technology, including those that power commercial vehicles and buses,
off-road equipment and stationary engines.
Diesel is the Technology of Work and Keeps the U.S. Supply Chain Moving
Unlike other fuel and technology types, diesel is the fuel and
powertrain of work. The U.S. supply chain relies on diesel to power
commercial vehicles and equipment that move commerce. Diesel fuel and
engines power 75 percent of commercial vehicles and 95 percent of large
Class 8 over the road trucks, while locomotives and marine vessels are
almost exclusively powered by diesel technology. While alternative
fuels have made in-roads in recent years, natural gas powers under two
percent of the commercial vehicle fleet while all-electric technologies
are adopted in very small numbers.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
Consumption of Diesel During COVID-19 Response
The reduction in the consumption of diesel fuel has been moderate
relative to gasoline. Passenger vehicle-miles-traveled and the
consumption of gasoline fell to historic lows as many Americans simply
stayed home subject to state and local shelter-in-place orders. The
same is not true of diesel powering many commercial vehicles and
equipment types. While some supply chains experienced low volumes,
including those delivering gasoline, inputs to shuttered manufacturing
facilities and some non-essential goods, other commercial vehicles and
equipment were hard at work delivering essential goods including
household items, foodstuffs, and medical equipment.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
Shelter-in-Place Orders Deliver Air Quality Gains
While the effect of the COVID-19 pandemic on the American economy
is exacting a severe toll, and one nobody would willingly accept, the
reduction in passenger vehicle traffic is generating air quality gains
including those environmental justice designated communities. For the
first time in generations, residents in Los Angeles have clear sight to
the mountains, while the California Air Resources Board reports 21
straight days of code green, or good, air quality. The last time this
milestone was achieved was 1980.\1\ Here in the Nation's capital,
springtime air quality is the cleanest it has been in 25 years as the
Washington Metropolitan Council of Governments has reported drops in
fine particle emissions and smog forming compounds and much of these
gains are attributable to the falloff in passenger vehicle use.\2\
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\1\ https://www.latimes.com/environment/story/2020-04-28/
coronavirus-la-air-quality-improved-pandemic-dontexpect-it-to-last
\2\ https://www.washingtonpost.com/weather/2020/04/22/washington-
dc-air-quality-coronavirus/
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Congress Should Consider Policies to Sustain Air Quality Gains While
Providing a Lasting Boost to the Economy
As shelter-in-place orders are lifted and restrictions on certain
commerce are eased, a rebound in traffic and transportation related
emissions is a reasonable expectation. While members of the Committee
will no doubt hear considerations for recovery policy contingent on
transformative measures that move away from conventional fuels and
technologies to those identified as the greenest and lowest impacts on
greenhouse gas emissions, a prudent approach would include a mix of
deep rapid investment in proven and available technologies that boost
manufacturing today coupled with longer term investments in those
solutions that are still on the drawing board.
Diesel technology can deliver immediate term benefits in terms of
demonstrated air quality gains and economic growth and there are
policies Congress should consider:
Temporarily Suspend the Federal Excise Tax on Commercial Truck
Purchases
Temporarily suspending the 12 percent Federal excise tax (FET) on
commercial truck purchases can have a direct and immediate beneficial
effect in reducing emissions by incentivizing the replacement of older
and higher emitting trucks with new cleaner models. While it has been
more than 10 years since the most recent near-zero emissions tailpipe
standard went into effect for newly manufactured trucks, just under
half of the commercial vehicle fleet comes with technology to meet the
standard. One of the leading contributors to the slow adoption of new
and cleaner commercial vehicles is the FET. Today, truck owners looking
to purchase a new truck must pay a 12 percent excise tax on top of the
purchase price of a new truck. The tax typically adds an additional
$22,000 to the purchase of a new truck and trucking equipment that can
cost between $130,00 and $150,000 for a Class 8 truck.
Temporarily suspending the FET may entice truck owners to purchase
a new cleaner truck. According to the latest data published by the U.S.
Census, the trucking industry relies on 3.5 million drivers, the
overwhelming majority of trucking firms are small businesses and
independent owneroperators.\3\ These smaller owner-operators may not
have the financial wherewithal to pay the tax on top of the purchase of
a new truck.
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\3\ https://www.census.gov/library/stories/2019/06/america-keeps-
ontrucking.html?utm_cam
paign=20190607msacos1ccstors&utm_medium=e-mail&utm_source=govdelivery
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The benefits of replacing older trucks with new cleaner models is
substantial. Replacing a single older generation Class 8 truck with a
new model can reduce 30 lbs. of fine particle emissions. As roughly
half of the commercial vehicle fleet comes with technology to meet the
near-zero fine particle tailpipe emissions standard, these cleaner
trucks have eliminated 1 million tons of fine particle emissions that
is equivalent to taking all cars off U.S. roads for 33 years.
Suspension of the FET to incentivize the replacement of older trucks
can help generate substantial benefits from the remaining half of the
U.S. commercial vehicle fleet that is of an older generation of
technology.
Support Expanded Funding for the Diesel Emission Reduction Act
The Diesel Emissions Reduction Act (DERA) is a highly effective
program managed by the U.S. Environmental Protection Agency (EPA) and
expanded funding for the program can generate large and immediate term
benefits in reducing emissions from heavy-duty trucks, buses and off-
road equipment. The program provides a small level of funding to incent
the owners of older and higher emitting vehicles and equipment to scrap
and replace with newer and cleaner technologies. Since funding for the
program was first appropriated in 2008, DERA activities have replaced,
repowered, or retrofitted over 60,000 vehicles and equipment to
eliminate nearly 16,000 tons of fine particle emissions and almost
500,000 tons of smog forming compounds. Replacing older generations of
technology with new more efficient models also saves fuel and reduces
greenhouse gas emissions. According to EPA, the program has eliminated
5 million tons of greenhouse gas emissions.\4\
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\4\ ``4th Report to Congress: Highlights of the Diesel Emissions
Reduction Program''. U.S. EPA. 2019. https://www.epa.gov/sites/
production/files/2019-07/documents/420r19005.pdf
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As noted earlier, roughly half of all trucks and buses on the road
in the U.S. are of an older generation of technology that do not come
with advanced emission controls to meet the most recent near-zero
emissions tailpipe standard established by EPA. Expanded funding for
the DERA program is an effective tool to encourage vehicle and
equipment owners to replace older models with new technologies that
meet the most recent near-zero emissions standard.
Much like commercial vehicles, new engines that power the wide
variety of off-road equipment must meet stringent tailpipe standards to
reduce emissions to near-zero levels including very large applications
including locomotives and marine vessels. Research commissioned jointly
by the Diesel Technology Forum and the Environmental Defense Fund finds
that repowering these much larger engines with new cleaner diesel
models can deliver substantial emission reductions. A single locomotive
engine replacement generates as much emission reductions as taking
8,000 cars off the road for a year while a single marine vessel engine
replacement is like taking 26,000 cars off the road for a year.\5\
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\5\ ``Emission reductions and cost effectiveness for marine and
locomotive projects'' Ramboll Environ commissioned by Diesel Technology
Forum & Environmental Defense Fund, 2018. https://www.dieselforum.org/
files/dmfile/Cost-Effectiveness_Memo-Task-1-Final-February-2018.pdf
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These large engine replacement projects deliver substantial
emission reduction benefits directly to communities located near ports,
railyards, and other freight activities. These communities are often
located in environmental justice designated areas and the DERA program
has funded many locomotive and marine vessel engine replacements.
Expanded funding for the DERA program can generate substantial
clean air benefits by encouraging investment in new cleaner heavy-duty
trucks and other key goods movement assets such as marine vessels that
are often of an even older generation of technology manufactured before
emission controls were ever required. These immediate term benefits
would accrue to many environmental justice communities located near
ports, railyards and other goods movement facilities.
Support for Multi-Year Surface Transportation Spending Programs
A multi-year reauthorization of surface transportation spending
programs may have a beneficial effect on air quality. According to
research published by the American Transportation Research institute
(ATRI), average speeds by motor carriers across the country during the
COVID pandemic more than doubled due to the significant reduction in
traffic congestion.\6\ As vehicle miles travel rebound as stay at home
orders are eased, we can expect traffic congestion to rebound as well
highlighting the need to invest in surface transportation programs to
hold on to these air quality gains. Research shows that idling trucks
were responsible for the consumption of an additional 6.87 billion
gallons of fuel in 2016, resulting in 67.3 million metric tons of
excess carbon dioxide (CO2) emissions.\7\ These are
emissions that may not have been generated if surface transportation
projects were completed.
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\6\ https://truckingresearch.org/2020/03/24/gps-data-shows-
critical-truck-deliveries-continue-despite-covid-19-analysisof-data-
finds-unprecedented-performance-year-over-year/
\7\ https://truckingresearch.org/2019/03/01/new-atri-research-
quantifies-impacts-of-congestion-on-fuel-consumptionand-emissions/
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Diesel technology is also vital to the completion of many public
works projects. Diesel technology powers the large variety of equipment
types found at work on these projects. The latest near-zero emissions
diesel technology are also available that help reduce emissions for
equipment operators and residents in the communities where these
projects are located. Much of the diesel powered equipment is
manufactured or assembled in facilities across the U.S.
Policy Changes Support Domestic Manufacturing and Employment
Policies that encourage the replacement of older heavy-duty
vehicles and equipment with new cleaner models provide needed economic
stimulus to domestic manufacturers and employment. Diesel technology is
the technology of choice that powers these heavy-duty vehicles and
equipment. In 2019, about 1 million heavy-duty diesel engines were
manufactured in production facilities in 13 states. The vehicles and
equipment they power are also predominantly manufactured in the U.S. as
well. According to the Association of Equipment Manufacturers, the
production of diesel-powered equipment supports 1.3 million jobs and
generates $158 billion in economic value. In fact, the average wage in
the industry exceeds the national average, paying workers about $78,000
per year.\8\
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\8\ ``The Market Size and Economic Contributions of the Off-
Highway Equipment Industry''. Association of Equipment Manufacturers,
2017. http://www.aem.org/AEM/media/docs/Advocacy/AEM-Economic-Research-
Report.pdf
---------------------------------------------------------------------------
We appreciate the opportunity to provide these comments concerning
the role of diesel technology in underpinning the supply chain during
COVID-19 response. As Congress considers stimulus policies designed for
economic recovery, there are low-cost strategies to deliver air quality
gains while boosting domestic employment and manufacturing. We urge
that you take steps to temporarily suspend the Federal excise tax on
truck purchases through 2021 while boosting funding for the Diesel
Emission Reduction Act.
Please feel free to contact me with any questions or concerns at
(301) 514-9046.
Sincerely,
Allen R. Schaeffer,
Executive Director.
______
Alliance for Automotive Innovation
Washington, DC, June 3, 2020
Hon. Roger Wicker,
Chairman,
Committee on Commerce, Science, and Transportation,
United States Senate.
Hon. Greg Walden,
Ranking Member,
Committee on Energy and Commerce,
United States House of Representatives.
Dear Chairman Wicker and Ranking Member Walden,
On behalf of the Alliance for Automotive Innovation (Auto
Innovators), I appreciate the opportunity to respond to your May 12,
2020, letter regarding the automotive industry's response to the COVID-
19 public health crisis. It has been a privilege and honor to witness
Auto Innovators members and their employees--along with partners
throughout the automotive ecosystem--step forward in this time of
national need. Our industry employs roughly 10 million Americans, in
addition to those who are employed in the technology and mobility
sectors directly. Their actions in support of the frontline workers,
healthcare employees and first responders highlight the innovative and
can-do spirit of the U.S. automotive industry.
Prior to the COVID-19 pandemic and corresponding public health
emergency, the auto industry was focused on the future. Automakers,
suppliers, technology companies and others in the automotive ecosystem
were investing in and deploying transformative innovations with the
potential to revolutionize personal mobility--electrification,
automation, connectivity, artificial intelligence, and other
foundational technologies. With respect to vehicle electrification
alone, the auto industry is expected to invest more than $250 billion
globally by 2023.\1\ Fortunately, because of the investment and hard
work of our members and their employees, the U.S. has enjoyed a
leadership position regarding a number of cutting-edge technological
innovations.
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\1\ https://iwk-cp.com/wp-content/uploads/2018/07/Automotive-
Global-Outlook-2018-European-version_IWK_FINAL.pdf
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However, in a matter of weeks, the COVID-19 public health crisis
created unprecedented challenges for the auto industry. Between March
and April, the escalating public health crisis brought all major U.S.
motor vehicle production to a complete halt. This marked the first time
since World War II that all U.S. and North American production was shut
down. Retail sales in April dropped nearly 50 percent compared to 2019
sales. The unexpected and simultaneous shock to supply and demand has
been profound to the entire automotive ecosystem.
Over the past two months, Auto Innovators members and their
employees have demonstrated ingenuity, compassion, and commitment
through their contributions to the national response to this public
health crisis. In a matter of weeks, motor vehicle manufacturers and
suppliers retooled manufacturing facilities to make ventilators,
Personal Protective Equipment (PPE) and other supplies desperately
needed by those on the front lines of the battle against COVID-19. They
have donated--and even modified--vehicles to provide safer
transportation options for health care workers and community members.
Technology and mobility companies offered automated driving systems to
deliver food and supplies to communities in need. Even the seemingly
simple gestures required resources, commitment, and creativity.
The diversity and breadth of Auto Innovators' contribution to the
Nation's response to the COVID-19 public health crisis can be found in
the attached summary of various actions taken by Auto Innovators
members. While this list is not comprehensive, it reflects the scale of
commitment of our members. Every part of the automotive industry
stepped up and contributed to the Nation's response.
The actions of Auto Innovators members reflect the spirit of
innovation that pervades the auto industry in the U.S. The realities of
this public health crisis, however, cannot be ignored.
The auto industry looks very different today than it did just two
months ago. North American production is beginning to restart, but this
will take time as employees adapt to new health and safety requirements
and supply chains regain stability. Vehicle sales have rebounded in
recent weeks but remain well below expectations. Most industry
forecasts predict a loss of between two million and four million
vehicle sales compared to the expected 16.8 million units that were
projected at the start of the year. Based on current projections, the
U.S. auto sector is not projected to regain the production and sales
volumes from 2019 until 2023.
The economic reality of the combined hit to auto production and
sales is, in some respects, simple. Although restart efforts are
underway, there remains a high degree of uncertainty when it comes to
supply chain challenges, consumer confidence and overall economic
signals. As automakers, suppliers and others absorb losses related to
COVID-19, the industry will have less capital at its disposal to invest
in developing the technologies of the future. In this highly
competitive, capital-intensive industry, market certainty will become
even more critical for maintaining U.S. leadership in automotive
innovation in advanced safety technologies, as well as vehicle
efficiency and electrification.
As noted in your letter, certain nations have made clear their
intention to capitalize on the economic consequences of the public
health crisis to establish a dominant role in the auto sector. In the
area of automation, specifically, China is openly leveraging this
public health crisis to gain prominence in the global race to dominate
development of this crucial life-saving technology.\2\ As we have
witnessed in other sectors, if nation-state-sponsored companies define
the future of innovative technologies, the implications for the
Nation's economic and national security will be profound.\3\
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\2\ https://www.ft.com/content/cdc6f5f4-3eae-44d9-8c59-808bbcfcca02
\3\ https://asia.nikkei.com/Spotlight/Huawei-crackdown/Huawei-
steps-up-ambitions-in-self-driving-vehicles-race
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At this time, the auto industry is focused on the health and safety
of our employees, stabilizing supply chains and gradually resuming
production. These must remain our top priorities as we continue to
navigate uncertain market dynamics and challenges from the ongoing
public health crisis. As the industry recovers, however, policymakers
and the industry must not lose sight of the future.
To provide the market certainty necessary to transform personal
mobility in the U.S. and overcome the impacts of the COVID public
health emergency, policymakers should consider the following actions:
Enacting a Federal framework that provides for full-scale
testing and deployment of highly automated vehicles on U.S.
roadways.
Preserving the entire 5.9 GHz spectrum for next-generation
automotive safety technologies which are in jeopardy due to the
pending Federal Communication Commission NPRM that would
reallocate a significant portion of the 5.9 GHz band for
unlicensed Wi-Fi use.
Enacting a national data privacy framework that provides
consistent protections to consumers across the nation,
recognizing that the auto industry has been a leader in
balancing data privacy needs.
Fostering the U.S.-based development and deployment of
artificial intelligence that supports vehicle automation and
other vehicle-based services.
Ensuring that export control restrictions do not create
unfair and unnecessary limitations on the ability of companies
to export automotive technologies developed in the U.S. to
markets around the world.
Promoting U.S. innovation and development of electric
vehicle batteries and their raw materials with policies that
encourage domestic EV battery production and recycling.\4\
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\4\ U.S. reserves for lithium and cobalt is less than 1 percent and
4 percent, respectively, of the global reserves and most of the
lithium-ion battery production takes place in China, with U.S.
companies only manufacturing about three percent of global production
(See e.g. https://www.usgs.gov/centers/nmic/cobalt-statistics-and-
information, https://www.usgs.gov/centers/nmic/lithium-statistics-and-
information, Testimony of James Greenberger, Executive Director of
NAATBatt International, at Senate EPW Hearing, ``Electric Battery
Production and Waste: Opportunities and Challenges.'' July 17, 2019.)
Enacting policies at the Federal level that support, and
grow, a sustainable market for electric vehicles including the
buildout of the necessary charging and hydrogen refueling
---------------------------------------------------------------------------
infrastructure.
Encouraging a holistic approach to decarbonizing the
transportation sector by supporting the development, and market
adoption, of low-carbon fuels in coordination with the next
generation of highly efficient vehicle technologies.
Encouraging and supporting greater presence and engagement
by NHTSA and other Federal agencies in relevant international
regulatory proceedings and processes, especially related to
electrification and automation.
We find ourselves on the cusp of a transformative moment in the
future of the U.S. automotive industry. It will require creativity and
commitment -including from members on the Senate Committee on Commerce,
Science, and Transportation and House Committee on Energy and
Commerce--for the U.S. to retain our Nation's important leadership role
when it comes to automotive innovation. Our association stands ready to
work with you and all members of the Committee to help realize this
opportunity, both in support of the near-term recovery, as well as the
long-term prosperity of the Nation and our manufacturing sector.
Sincerely,
John Bozzella,
President & CEO.
Enclosure
COVID-19 Relief Efforts
June 3, 2020
Table of Contents
Aston Martin
Bosch
BMW Group
Cruise
DENSO
Fiat Chrysler
Ford
General Motors
Honda
Hyundai
Intel
Jaguar Land Rover
KIA
Maserati
Mazda
Mercedes-Benz
Mitsubishi
Nissan
NXP
Panasonic
Porsche
RV Industry Association
Subaru
SiriusXM
Suzuki
Texas Instruments
Toyota
Volkswagen
Volvo
______
Individual Member Actions
Aston Martin
(4/24): Aston Martin Acts To Support Warranty And Service
Customers During COVID-19 Lockdowns Worldwide
Bosch
(4/22): Bosch begins producing hand sanitizer and protective
face masks
(3/28): Bosch develops rapid test kit for coronavirus
BMW Group:
(4/29): BMW Group contributes computing power to support
@foldingathome, Stanford University project simulating protein
dynamics to better understand #coronavirus and how to fight it
The Central Region and Chicagoland BMW MACO dealers
delivered 330 cases of sanitizer and 165 cases of wipes--
representing more than 10,000 pounds of supplies--to
organizations in need
Fields BMW (Northfield, Ill.) provided PPE safety supplies
to their local fire-rescue department
BMW of West St. Louis (Manchester, Mo.) donated respirator
masks to Saint Louis University and Washington University to
protect health care workers
Patrick BMW (Schaumburg, Ill.) are offering $1,000 off the
purchase or lease of any vehicle in addition to manufacturer
incentives for front line workers and providers
Baron BMW (Kansas City, Kan.) is offering free oil changes
on BMW/MINI vehicles for all active duty first responders, law
enforcement, firefighters and EMTs
BMW of Cleveland (Solon, Ohio) is offering discounted oil
changes to first responders
BMW of Ann Arbor (Ann Arbor, Mich.) is offering free towing,
vehicle diagnosis and `team member' pricing on all repairs and
maintenance to first responders
BMW of Champaign (Savoy, Ill.) is offering 25 percent off
maintenance services for health care workers
Kelly BMW (Columbus, Ohio) is offering special discounts on
anti-microbial vehicle interior cleaning for frontline
healthcare workers and first responders
BMW of Louisville (Louisville, Ky.) is offering
complimentary oil services, car washes and deep sanitization
for their vehicle for frontline workers
BMW of Murrieta (Murrieta, Calif.), East Bay BMW
(Pleasanton, Calif.), BMW Seattle and Long Beach BMW (Long
Beach, Calif.) are offering free car sanitation services for
healthcare workers and first responders
BMW of Bridgewater (Bridgewater, NJ) donated several cases
of gloves to Newark Beth Israel Hospital
BMW of Schererville (Schererville, Ind.) provided dinner to
Franciscan Hospital in Hammond, Ind. and lunch to St.
Catherine's hospital in East Chicago
BMW of North America donates vehicles to World Central
Kitchen in New York City in support of its #ChefsforAmerica
initiative to deliver fresh meals to those in need
BMW regional dealerships have donated over 10,000 meals
across parts of Florida, Texas, New Jersey, and Georgia
(4/8): BMW Group Donates Cars for Hospital Employees Who
Would Normally Take Mass Transit
(4/8): BMW to start producing face masks (PPE production)
(4/6): BMW manufacturing in South Carolina donates thousands
of masks to South Carolina hospitals and first responders
BMW of North America loans vehicles to two non-profit
organizations in California, The Greater Sacramento Urban
League and The Brotherhood Crusade, for the delivery of food
and IT equipment to inner city communities.
Cruise
(3/31): Standing with San Francisco During COVID-19
(Monetary donation)
(3/29): Cruise partners with local charities to deliver
20,000+ contact-free meals
(3/14): Cruise donates $300,000 to COVID-19 relief efforts
DENSO
(5/20): DENSO Employees in Michigan and North Carolina
Produce Respirator Components to Support COVID-19 Efforts
(5/8): Toyota Dealers Turn Up for Their Communities
(Charitable work, monetary donations)
(4/23): DENSO Delivers Face Shields to Detroit-Area Front-
Line Workers
(4/22): DENSO Supports and Protects Communities Amid
Pandemic (Monetary donation)
(4/21): Discover How GBA Members Are Fighting COVID-19 (PPE
donation)
(4/17): How DENSO is Fighting COVID-19 in Our Communities
(PPE donation)
(4/13): Toyota is the latest brand to outline its battle
plan to stem the spread of COVID-19 (PPE Production)
(4/1): DENSO produces face shields in Maryville, Tennessee
(video)
(4/1): DENSO in Maryville to Produce Thousands of Face
Shields for Tennessee Health Care Workers; DENSO Canada
Employee 3D-Prints Face Shields at Home
(3/31): DENSO Delivers Technical Support in D-WAVE Project
using Quantum Systems to Combat COVID-19 (Quantum computer
access for COVID19 researchers)
(3/29): DENSO Spirit Spotlight: Britt Autry's Mission to
Make Face Shields
(3/26): DENSO to Donate Nearly 2,000 N95 Masks to Hospitals
in Michigan, North Carolina
Fiat Chrysler
(5/15): Fiat Chrysler donates 10,000 masks to Macomb County,
Michigan
(5/14): Fiat Chrysler donates masks to Boone County,
Illinois
(5/13): Fiat Chrysler donates masks to City of Kokomo,
Indiana
(5/11): Fiat Chrysler uses global supply chain to source PPE
for Beaumont Health System
(5/8): Fiat Chrysler helps local food bank and City of
Marysville (Monetary donation, PPE donation)
(5/3): Fiat Chrysler donates 10,000 face shields to patients
and providers
(4/21): Fiat Chrysler aids Food Bank Council of Michigan
(Monetary donation)
(4/11): What Fiat Chrysler is doing in fight against
coronavirus (PPE donation and donations to food banks)
(4/2): FCA Donates 500,000 face masks to Michigan emergency
operation centers
(4/1): FCA Announces 'Drive Forward' Initiative, Offering
Incentives and Support to Consumers (consumer relief)
(3/27): Fiat Chrysler Automobiles Expands Coronavirus-
related Relief Actions; 1 Million Meals for School Children
Included in New Programs (PPE donation and donations to food
banks)
(3/23): Fiat Chrysler to make face masks for U.S. health-
care workers (PPE donation)
Ford
(5/6): Ford and 3M Now Shipping Powered Air-Purifying
Respirators to Health Care Workers; New Jersey Orders 500,000
Gowns (PPE production)
(4/30): Ford produces 10 millionth face shield to help
protect healthcare workers and first responders across the
nation
(4/15): Ford, Wayne State University, Access Coalition
Launch First Mobile COVID-19 Testing for Michigan First
Responders (Vehicle donation, volunteering, equipment donation)
(4/13): Ford to Produce Respirators, Masks for COVID-19
Protection in Michigan; Scaling Up Production of Gowns, Testing
Collection Kits
(4/2): Ford Motor Company Fund Announces Donation Match, New
Virtual Opportunities for Employees to Help Fight COVID-19
(Monetary donation, volunteering)
(3/31): Ford Donates Vehicles to Help World Central Kitchen
Deliver 20,000 Meals a Day
(3/30): Ford mobile units to help health care workers
(remote service)
(3/30): Ford to Produce 50,000 Ventilators in Michigan in
Next 100 Days; Partnering with GE Healthcare Will Help
Coronavirus Patients
(3/30): Doctors advise Ford designers to make COVID-19
safety equipment (PPE donation)
(3/24): Ford Works with 3M, GE, UAW to Speed Production of
Respirators for Healthcare Workers, Ventilators for Coronavirus
Patients
(3/24): Automakers Step Up to Challenge of Helping in
Coronavirus Pandemic (PPE production)
(3/19): Automakers offer to build ventilators as U.S. faces
critical shortage
General Motors
(5/18) Returning to the Workplace with Confidence (Employee
health, occupational medicine)
(5/14) Chevrolet, Buick, GMC and Cadillac Expand Customer
Care Initiatives With the `CLEAN' Program (Public health
precautions, consumer protections)
(5/1) Team GM Taking Global Action Against COVID-19
(4/19): GM Expands Medical Projects and Charitable
Deliveries to Hospitals (PPE production)
(4/19): First General Motors-Ventec Critical Care
Ventilators Delivered to Chicagoland Hospitals
(4/14): First General Motors-Ventec Critical Care V+Pro
Ventilators Ready for Delivery (Ventilator production)
(4/14) Hamilton Medical Announces New Production of Critical
Care Ventilators in the U.S. (Supply chain logistics, expertise
donation)
(4/9): GM Mobilizes to Support Communities Amid Coronavirus
Pandemic (Monetary donation, PPE production)
(4/9): GM to Share Face Mask Production Plans with Michigan
Manufacturers Association and Original Equipment Suppliers
Association
(4/4) One Million Masks and Counting: A Deeper Look at GM's
PPE Production
(3/27): Ventec Life Systems and GM Partner to Mass Produce
Critical Care Ventilators in Response to COVID-19 Pandemic
(3/19): Automakers offer to build ventilators as U.S. faces
critical shortage
Honda
(6/1): Honda Engineers Use Manufacturing Know-how to Produce
130,000 Face Shields for Frontline Healthcare Workers
(5/22): Honda Makes, Donates 5,000 Face Shields to Dallas
Hospital
(5/21): Honda Powersports Dealers Donate PPE to Healthcare
Facilities to Help Cope with COVID-19
(5/5): Honda Responds to COVID-19 With Support to Customers,
Honda Associates, Business Partners and Local Community
Organizations (Monetary donation, PPE donation, PPE production)
(5/5): Detroit-area Residents will be Transported to COVID-
19 Testing in Modified Honda Odyssey Minivans
(4/30): Honda Begins Making Vital Ventilator Parts for
Dynaflo to Help COVID-19 Patients
(4/10): Honda makes, donates plexiglass face shield for area
hospitals
(3/30): Our Pledge to Communities and Customers in Response
to COVID-19
Hyundai
(4/14): Hyundai Doubles Support for COVID-19 Drive-Thru
Testing Locations Across America
(3/27): Hyundai Opens 11 COVID-19 Drive-Thru Testing Centers
(3/26): Hyundai Hope On Wheels Expands Its Support For
COVID-19 Drive-Thru Testing To 11 Children's Hospitals With
$2.2 Million
(3/24): Hyundai Hope On Wheels Donates $2 Million to
Children's Hospitals Throughout the U.S. To Support COVID-19
Drive-Thru Testing Centers
(3/23): Weekly Drive Through Food Pantry Starts at Honda
Center
Intel
(4/7): Intel Grants Free Access to Its Intellectual Property
to COVID19 Researchers and Scientists
(4/7): Intel Commits $50 Million With Pandemic Response
Technology Initiative to Combat Coronavirus
(3/26): Intel Allocates $6 Million For Coronavirus Relief,
Builds On Previous Efforts
(3/26): Intel Response to COVID-19 Crisis (Monetary
donations)
(3/23): Intel Donates More Than 1 Million Protective Items
For Healthcare Workers in Coronavirus Fight
Jaguar Land Rover
(4/6): Jaguar Land Rover Announces Steps to Support
Customers in Response to COVID-19 (Consumer financial support)
(3/19): Automakers offer to build ventilators as U.S. faces
critical shortage
KIA
(5/20): Kia Donates Face Shields to Hospital Workers
Throughout the Chicago and Detroit Areas
(4/23): Kia Motors Delivers 15,000 Medical Use Face Shields
to the Georgia Emergency Management Agency
(4/20): Kia Motors Producing Protective Face Shields at U.S.
Manufacturing Plant for Use by Healthcare Workers Across the
Country
(4/9): Kia Motors Donates $1 Million to Aid Homeless Youth
During the COVID-19 Pandemic
Maserati
(4/26): NYC soup kitchens are now serving grad students,
actors and musicians (Vehicle and monetary donation)
Mazda
(4/15): Mazda Honors Health Care Heroes with New Essential
Car Care Program (Free oil changes and car cleaning services)
(4/1): Mazda Financial Services Launches by Offering New
Customers Payment Deferral Option (Consumer financial support)
Mercedes-Benz
(5/27): Coronavirus Update and Health System Preparations
(PPE production and donation)
Mercedes-Benz Vans Charleston: Plant employees in Sprinter
vans delivered more than 300 meals and supply kits to South
Carolina families in need
(5/8): Mercedes-Benz donates over $500,000 in funds, goods
and services for COVID-19 relief efforts
(5/7): Mercedes-Benz donates 2,500 meals, 13 vans to Feeding
Northeast Florida
(5/1): Mercedes-Benz donates 600 meals per week to
organizations such as the Boys and Girls Club of North Florida
and Kim's Open Door during the month of May
(5/1): Jay Leno, Martha Stewart, Rickie Fowler, Madelaine
Petsch and Ludacris to headline first ever Mercedes-Benz
Concours de Zoom (Monetary donation)
(4/21): Mercedes-Benz of Baton Rouge donates van to
transport doctors to and from hotel, hospital
(4/17): Mercedes-Benz USA is donating 7,000 meals and 9 vans
to Atlanta organizations
(4/13) Meal Donations to PAWkids Child Enrichment Program:
1,000 meals prepared in the Mercedes-Benz cafeteria per week
(4/10): Mercedes-Benz Coronavirus Financial Relief and New
Car Incentives
(4/6): Manufacturing masks post on Instagram (PPE
production)
(3/24): Mercedes Benz hosts blood drive in company parking
lot (Charitable work)
(3/19): Mercedes-Benz, coalition convoy supplies to
Salvation Army shelter (PPE donation)
Mercedes-Benz to Donate 9,000 N95 Facemasks to Northside
Hospitals in Atlanta
Sprinter Van Donations to MB Stadium: deliver stadium food,
prepared at the stadium, to local Atlanta families in need
Mitsubishi
(4/15): Mitsubishi Motors brings ``Small Batch--Big Impact''
nonprofit initiative to Nashville's Community Resource Center
(Vehicle donation)
(4/10): Mitsubishi Motors North America, Inc.'s latest
customer communication regarding Coronavirus (COVID-19)--April
10, 2020 (Customer financial relief, dealer support and PPE
reimbursement)
Nissan
Nissan response to Coronavirus Disease 2019 (COVID-19)
(Customer financial relief, PPE donations)
(4/16): Local Makers Team Up to Build Ventilators, Seek
Volunteers (Equipment donation)
(4/1): Coronavirus Mississippi: Nissan Canton plant making
face shields for local health care workers
(3/31): Nissan produces face shields for Middle Tennessee
health care workers
NXP
We are NXP: (PPE and laptop donations)
(4/23) NXP Tweet (Charitable work)
Panasonic
Panasonic has donated over $500,000 to support efforts to battle
the COVID19 pandemic, including:
$150K to address the critical food insecurity needs of
residents in Newark (where we are headquartered): $100K to
United Way's COVID-19 Response Fund; $25K Newark Public
Schools; and $25k Community Foodbank of New Jersey
70 Toughbook Laptops to New Jersey Public Schools
Nearly 700 baby monitors and laptop devices to New
Jersey and California hospitals to allow patients to
communicate with hospital staff and relatives
$15,000 annual grant to the Fayette Care Clinic
(Georgia)
Panasonic joined the Michael Phelps Foundation to support
$100,000 in grants to the Boys & Girls Clubs for when they re-
open after the virus
Panasonic Automotive is supporting automakers efforts on
ventilators with back-up battery cells
Employees across the company have utilized open source 3-D
printing to produce hundreds of critical PPE, including face
masks and face shields for health care workers and first
responders in their communities
(4/24): Panasonic Foundation Tweet (PPE donation)
(4/23): Panasonic Foundation Tweet (Monetary donation)
Porsche
(4/23): $1 Million Benefit for United Way COVID-19 Relief
(Monetary donation)
(4/10): Porsche and RM Sotheby's to Auction Last 911 (991)
to enter and pass down the serial production line for
Charitable COVID-19 Fundraiser
RV Industry Association
(5/6): Arterra Distribution Donates 1,000 KN95 Masks To
Local Healthcare Workers
(4/28): Medical Staff Find Housing In Donated RVs In
Coronavirus Pandemic
(4/29): SylvanSport Founder Shares Personal Motivation For
Making PPEs For First Responders
(4/23): Cummins Partners With 3M To Create Filters For
Powered Air Purifying Respirators
(4/23): RV Donated To South Bend Clinic By Gulf Stream Coach
(Vehicle donation)
(4/21): Hospital Receives $10K Donation For New Ventilator
From Trim-Lok
(4/23) Cummins Partners With 3M To Create Filters For
Powered Air Purifying Respirators
(4/23) RV Donated To South Bend Clinic By Gulf Stream Coach
(Vehicle donation)
(4/21) Hospital Receives $10K Donation For New Ventilator
From Trim-Lok (Monetary donation)
(4/20) Thetford Reaches Neighboring Communities In Need
During COVID-19 Crisis (Hand sanitizer container donation)
(4/20): Thetford Reaches Neighboring Communities In Need
During COVID-19 Crisis (Hand sanitizer container donation)
(4/15): Kirby Auto Group Assists Local Health Community With
Fleet Of RVs (Vehicle donation)
(4/13): Vomela Specialty Company Produces Face Shields In
Response To COVID-19
(4/6): Life Industries Corporation Increases Production Of
Sanitizing Solution During COVID-19 Crisis
(4/5): Donated RV Used For Social Distancing For Beloit
Firefighters (Vehicle donation)
(4/3): Xtreme Outdoors Donates Masks To New York Facility
(4/1): Grand Design Gives 1,000 Masks To Beacon Health
(3/31): Lance Camper Donates Personal Protection Equipment
(3/31): Winnebago Manufactures Medical Masks For Healthcare
Workers
(3/31): THOR Industries Donates Personal Protective
Equipment
(3/31): Lippert Components Manufacturing Medical Supplies
(3/31): Heartland RV Donates Critical Supplies To Beacon
Health System
(3/31): SylvanSport Manufactures Personal Protective
Equipment
(3/31): Jayco Donates Toy Haulers To Mobile COVID-19 Clinics
(Vehicle donation)
(3/27): Trailer Valet Offers Product To Meet RV Industry's
Commitment During the COVID-19 Crisis (Equipment donation)
Subaru
(4/16): Subaru of America partners with Feeding America to
help provide 50 million meals to help fight effects of Covid-19
pandemic
(3/24): Automakers Step Up to Challenge of Helping in
Coronavirus Pandemic (PPE donation)
(3/31): Working Together: Subaru of Indiana donates supplies
to Lafayette firefighters (PPE donation)
SiriusXM
(4/29) SiriusXM extends free access to the SiriusXM app
through May 31
(4/10) MusiCares' Coronavirus Relief Fund Passes $10 Million
in Donations (Monetary donation)
(3/31) SiriusXM offers free access to the SiriusXM app as
coronavirus pandemic continue
(3/24) SiriusXM joins MusiCares and The Recording Academy in
support of the COVID-19 Relief Fund (Monetary donation)
(3/6) SiriusXM, in conjunction with NYU Langone Health,
launches a special 24/7 channel dedicated to providing the
public with the latest information on coronavirus
Suzuki
(5/13) Suzuki has implemented home (or office) delivery
support efforts and has extended incentives for first responder
purchases
Texas Instruments
TI's response to COVID-19 (Monetary donations, PPE
production)
(5/12): Helping our customers in the fight against COVID-19
is personal for TIers (Medical technology development)
(5/8): TI's Response to COVID-19: We Are Here for You
(Software donations, virtual teacher support)
(5/5) Software, supplies and support: How we are caring for
our communities during COVID-19 (Donations, volunteering)
(5/4) Texas Instruments Foundation donates millions to
United Way of Metropolitan Dallas
(4/16) Kimberly-Clark Foundation and the Falk Family Donate
$1M to United Way Covid-19 Fund (Monetary donation)
(4/15) Texas Instruments Tweet (Charitable work)
Toyota
(5/11): Toyota donates vehicles and funds to address
critical mobility needs in Washtenaw county and support COVID-
19 local relief efforts
(5/5): Toyota USA Foundation builds upon company's ongoing
COVID-19 relief efforts
(4/22): How Toyota Financial Services is Tackling COVID-19
(Customer financial support)
Toyota's response to COVID-19: Monetary and In-kind
Donations (monetary and in-kind donations)
(4/22): Toyota Kentucky mass producing face shields for
COVID-19 response
(4/17): Toyota helping during COVID-19 pandemic (PPE
production)
(4/17): Toyota Innovation TILTS With COVID-19 (PPE donation)
(3/30): Toyota Tackles the COVID-19 Crisis With Money,
Manufacturing, and Customer Support
(3/27): Toyota Shifts Factories to Face Shields, Will Help
Device Makers
(3/27): We Are Here For You! Toyota's Response to the COVID-
19 Crisis (PPE production)
(3/25): Toyota Dealership Provides School Lunches for
Alabama Communities Amid COVID-19
(3/24): Toyota Donates $500,000 To The United Way For COVID-
19 Emergency Relief Needs
Volkswagen
(5/27): How the Volkswagen Group's worldwide logistics teams
help fight COVID-19 (PPE production, logistics support)
(5/13): Audi extends warranty coverage
(4/13): The Volkswagen Community-Driven Promise (Vehicle
donation and customer financial support)
(4/16): Volkswagen drives bigger to fight the COVID-19
outbreak (PPE donation, customer financial support, vehicle
donation)
(4/13): Volkswagen to aid U.S. dealers supporting
coronavirus relief efforts (charitable work and vehicle
donation)
(4/3): Volkswagen and Faurecia Delivering Personal
Protective Equipment to New York City Javits Center and Area
Hospitals
Volvo
Protecting those who protect us (PPE production, vehicle
donation)
(4/17): Volvo Tweet (PPE production)
(4/15): A message from Volvo Cars Corporate Communications
(Vehicle donation)
______
National Association of Manufacturers
Washington, DC, June 3, 2020
Hon. Roger Wicker,
Chairman,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Hon. Maria Cantwell,
Ranking Member,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Chairman Wicker and Ranking Member Cantwell:
During the COVID-19 pandemic, manufacturers in America continue
operating while doing everything possible to ensure the health and
safety of millions of employees, their families and their communities.
The country is depending on the many products we make--from equipment
and vehicles needed for our Nation's first responders to items that may
not seem critical but are integral to the supply chain and necessary
during these uncertain times. Manufacturers' ongoing response efforts
depend on our Nation's infrastructure system, and bold action to invest
in and modernize our infrastructure can advance the next steps of
recovery and renewal.
The National Association of Manufacturers appreciates the
committee's focus on the impact of COVID-19 on surface transportation
and the supply chain with the hearing on ``The State of Transportation
and Critical Infrastructure: Examining the Impact of the COVID-19
Pandemic.'' Transportation and logistics partners across the
manufacturing supply chain went into overdrive to provide our sector
with the capabilities to meet the immediate challenges posed by COVID-
19. These partners enabled industry's efforts to increase production,
retool supply chains and adapt to quickly evolving circumstances to get
critical supplies to the parts of the country that needed them most.
As we begin to enter the next phases of the COVID-19 era, the
consequences and serious risks of our aging infrastructure system that
existed prior to COVID-19 remain. We have continued to depend on the
20th-century investments of the last generation, and manufacturers'
ability to compete and grow requires 21st-century infrastructure that
is second to none. Infrastructure investment today is only onethird of
what it was in 1960 in terms of percent of GDP. Continued
underinvestment in infrastructure is a challenge for manufacturers'
productivity, as we advance to rely on complex supply chains and just-
intime principles where parts are ordered, made and delivered,
sometimes within hours.
The NAM's ``Building to Win'' plan is our infrastructure blueprint.
It calls for bipartisan action to deliver modern transportation,
energy, broadband and water infrastructure to meet the demands of
today's economy. In ``Building to Win,'' manufacturers outline bold
Federal solutions and offer multiple funding options. We first shared
this plan with you in 2016, and we released an updated version of this
plan last year to guide the ongoing infrastructure discussion debates
and actions.
The NAM's recent ``American Renewal Action Plan'' is our policy
guide for the Nation's response, recovery and renewal as we
continue to fight the COVID-19 pandemic, and it incorporates
our longtime call for infrastructure action from Congress. For
long-term renewal, the plan calls for bold actions that set the
stage for long-term growth, including historic investment in
our Nation's infrastructure. The plan states:
Even before the crisis, America desperately needed bold
infrastructure investment. Now, building a 21st-century
infrastructure system will not only provide urgently needed
jobs but also lay the foundation for a more competitive
economy:
Congress should approve historic investment of at least $1
trillion in our nation's infrastructure that aligns with the
NAM's ``Building to Win'' blueprint, which calls for upgrades
to our transportation, water, energy and digital infrastructure
systems.
A targeted, substantial investment in modernizing our Nation's
infrastructure would create jobs, boost economic growth, save lives and
help secure America's mantle of economic leadership in the world. We
look forward to working with this committee to advance infrastructure
measures that meet these shared goals and best position the next
generation of manufacturers and communities.
Sincerely,
Robyn Boerstling,
Vice President,
Infrastructure, Innovation and Human Resources Policy.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
______
Intelligent Transportation Society of America
June 3, 2020
Hon. Roger Wicker,
Chairman,
Commerce, Science, and Transportation Committee,
United States Senate,
Washington, DC.
Hon. Maria Cantwell,
Ranking Member,
Commerce, Science, and Transportation Committee,
United States Senate
Washington, DC.
Dear Chairman Wicker and Ranking Member Cantwell:
In anticipation of the Committee on Commerce, Science, and
Transportation's hearing today entitled ``The State of Transportation
and Critical Infrastructure: Examining the Impact of the COVID-19
Pandemic,'' the Intelligent Transportation Society of America (ITS
America) writes to emphasize that in this unprecedented time,
transportation technologies that address congestion, safety, and
touchless transportation are being deployed in new and unforeseen ways
to slow the spread of COVID-19, reinforce logistics and supply chains,
and improve system performance as the American economy begins to
reopen. As a result, ITS America supports policies in the
reauthorization of the Fixing America's Surface Transportation (FAST)
Act and a potential infrastructure bill that significantly increase
investments in research, development, and deployment of technologies to
make our transportation system safer and more resilient.
We also know that more assistance is urgently needed to ensure that
state, city, and county departments of transportation, transit
agencies, and public tolling authorities can keep the Nation's
transportation systems moving safely, especially as the country begins
to reopen from the coronavirus pandemic without a vaccine but with a
focus on protecting public health. With that in mind, we urge Congress
and the Administration to provide flexible funding to offset the
revenue losses at state and local departments of transportation,
transit agencies, and public tolling authorities. State and local
governments also require flexible Federal funding to deploy lifesaving
technologies that better protect pedestrians and cyclists and
accelerate the deployment of biking, scootering, and walking
infrastructure as communities pedestrianize streets to make it easier
for people to get around while socially distancing.
We know that we cannot simply return to the transportation
priorities that preceded the pandemic. COVID-19 has impacted every
sector of the transportation industry. The ability of states and cities
to revive their battered economies will depend on a safe transportation
system. With this in mind, we urge Congress to provide states, cities,
counties, transit agencies, and public authorities flexibility with
Federal funds to deploy technology to stop the spread of COVID-19,
including funding for contactless payment systems and technologies that
protect transit workers and passengers and Mobility on Demand services
and programs such as micromobility, ridesourcing, and microtransit to
connect vulnerable communities to health care and work. States and
local governments have seen reductions in greenhouse gases during the
stay at home orders, which will result in better health and
environmental outcomes. ITS America urges Congress and the
Administration to help states and local governments maintain lower
greenhouse gases by providing investments to support vehicle
electrification, including vehicle infrastructure, e-cargo cycling, and
micromobility.
The following are a few examples of how our members are deploying
safety, congestion mitigation, and touchless transportation technology
as the country moves from the public health emergency to the reopening
of the Nation's economy.
Safety Technologies
The Port Authority of New York and New Jersey hopes to pilot a
technology originally designed for reducing Hospital Acquired
Infections. Using ultraviolet light, the device creates hydrogen
peroxide out of the surrounding air, which then seeks and destroys
microbes in the air and on surfaces. The technology developers claim a
99.96 percent kill rate. It is an equipment-only solution (no chemicals
required), so it is appealing from an ease-of-use perspective.
Cubic GRIDSMART can perform unique, advanced functionality to
protect vulnerable road users, including bicyclists and pedestrians.
GRIDSMART's enhanced features can detect bicyclists in the middle of
intersections as well as pedestrians in crosswalks. This detection
capability can be used to retime traffic signals ``on the fly'' to
minimize conflicts with vulnerable users and allow extended clearance
intervals for these users to exit intersections.
PrePass Safety Alliance's weigh station bypass and electronic
tolling systems allow trucks delivering essential supplies to safely
bypass inspection, weigh station, and toll facilities at highway
speeds. PrePass technology helps keep drivers and toll facility and
state agency personnel safe by reducing the need for person-to-person
interaction. Qualified carriers equipped with PrePass RFID transponders
or cellular connected devices are precleared for bypass and toll
payments are processed electronically, keeping trucks on the road and
on time. PrePass driver safety ALERTSTM also keep drivers
informed of rest area closures, helping them find a safe place to rest
during extended driving hours.
BLYNCSY traffic sensor technology has been adapted to provide
contact tracing at universities and government buildings with the
ability to cover 98 percent of people in those facilities and can be
operational within a week.
Congestion Mitigation Technologies
The Regional Transportation Commission (RTC) of Southern Nevada is
using predictive analytics to improve safety and efficiency on
freeways, including key freight corridors and major arterials, by
compiling and analyzing data to report in real-time the location of
accidents and predict where dangerous driving conditions or congestion
may occur. This technology enables faster validation and response to
roadway incidents as well as more efficient use of resources to
proactively deploy traffic patrols and abatement efforts with the goal
of preventing incidents. Using historic and real-time data from freeway
sensors, connected vehicles, and other sources, predictive analytics
helps anticipate where congestion hot spots are likely to occur up to
two hours in advance. More importantly, a tangential benefit has been
RTC's ability to recognize and respond to incidents up to 12 minutes
faster than before.
Iteris is helping states and cities monitor speed, volume, delay,
and congestion experienced by travelers of all modes as they navigate
the impacts of the pandemic on mobility and safety on roadways.
ClearGuideTM helps make the best traffic operations and
planning decisions in an intuitive and easy-to-use interface. The
technology analyzes large amounts of complex transportation data to
produce real-time and historical visualizations that help identify
problem areas before traffic congestion worsens.
Cubic Transportation Systems' SynchroGreen is an adaptive signal
control component of Trafficware's ATMS platform, a field-proven
software solution that reduces motorist travel time, delays, and stops.
Used in states like Texas and Florida, this technology continuously
assesses both current and predictive traffic trends for all phases of
intersection movements within a traffic network, determining the
optimal signal settings. It allocates time for each vehicle and
pedestrian phase in real time as well as accommodates roadway incidents
and events on-the-fly, adjusting signal timing as necessary to restore
smooth traffic flows.
Touchless Technologies
Due to the recent COVID-19 pandemic, and in an effort to keep the
Michigan Department of Transportation (MDOT) Transportation Operations
Center (TOC) staff and public safe, two of MDOT's largest TOC's--the
Statewide TOC (STOC) in Lansing and the Southeast Michigan TOC (SEMTOC)
in Detroit--moved to a virtual setup, with decisions being made and
implemented within 48 hours at the beginning of April and the end of
March, respectively. While there were early challenges, MDOT was able
to maintain all TOC service with little to no impact because much of
the planning for transitioning to virtual TOC's was done well in
advance of the pandemic. MDOT's ATMS system, which allows MDOT to run
all of its TOC's and ITS devices, is web-based and allows users to
remotely login into the state's network though a VPN. This allows TOC's
to be flexible by assisting one another during peak traffic periods or
allows TOC's to temporarily relocate due to unforeseen events. In
addition, MDOT has been testing laptops for operational purposes to
replace aging desktops and allow for more mobile operations, which
gives both TOC's enough computers for each operator. MDOT also has a
large supply of Freeway Courtesy Patrol Radios, which equips each
operator with his/her own radio in the field and saves time.
Communication among TOC staff was a primary concern early on, but the
use of Microsoft Teams quickly mitigated these concerns.
While the Committee on Commerce, Science, and Transportation does
not have jurisdiction of transit programs, we want to highlight two
examples of how ITS America members are using touchless technology to
protect both riders and employees.
The Central Ohio Transit Authority (COTA) is and will be
implementing a wide range of technologies to protect its riders and
employees. These technologies include a contactless payment system,
driver safety barriers, employee temperature screening, state-of-the-
art disinfecting techniques, and new on-demand routing schemes. COTA
will continue to explore other emerging technologies that support safe
and secure transit.
In May 2019, Uber launched its first mobile ticketing collaboration
with Denver's Regional Transportation District (RTD) and expanded in
January 2020 to Las Vegas' Regional Transportation Commission (RTC).
With the tap of a few buttons, transit riders in these two cities can
plan end-to-end journeys and pay for their bus or train ride in the
Uber app on their mobile device. This technology allows riders to
quickly purchase fares without needing to handle cash, have exact
change, or use a separate fare vending machine, which results in a more
seamless and convenient transit ride with zero public touch points.
As the trade association representing stakeholders across the
transportation sector, including state, city, and county departments of
transportation, metropolitan planning organizations, automotive
manufacturers and suppliers, technology companies, engineering firms,
and research universities, ITS America expresses our strong support for
the actions taken by Congress and the Administration to minimize the
impact of COVID-19 on the American economy, the transportation system,
the traveling public, and transportation workers, and their families.
Sincerely,
Shailen Bhatt,
President and CEO,
The Intelligent Transportation Society of America.
cc:
The Honorable Marsha Blackburn (R-TN)
The Honorable Roy Blunt (R-MO)
The Honorable Shelley Moore Capito (R-WV)
The Honorable Deb Fischer (R-NE)
The Honorable Cory Gardner (R-CO)
The Honorable Ron Johnson (R-WI)
The Honorable Mike Lee (R-UT)
The Honorable Jerry Moran (R-KS)
The Honorable Rick Scott (R-FL)
The Honorable Dan Sullivan (R-AK)
The Honorable John Thune (R-SD)
The Honorable Todd Young (R-IN)
The Honorable Tammy Baldwin (D-WI)
The Honorable Richard Blumenthal (D-CT)
The Honorable Tammy Duckworth (D-IL)
The Honorable Amy Klobuchar (D-MN)
The Honorable Ed Markey (D-MA)
The Honorable Gary Peters (D-MI)
The Honorable Jacky Rosen (D-NV)
The Honorable Brian Schatz (D-HI)
The Honorable Kyrsten Sinema (D-AZ)
The Honorable Jon Tester (D-MT)
The Honorable Tom Udall (D-NM)
Ron Thaniel, Vice President of Legislative Affairs, ITS America,
[email protected]
______
Motor & Equipment Manufacturers Association
Washington, DC, June 3, 2020
Hon. Roger Wicker,
Chairman,
Committee on Commerce, Science, and Transportation,
U.S. Senate,
Washington, DC.
Hon. Maria Cantwell,
Ranking Member,
Committee on Commerce, Science, and Transportation,
U.S. Senate,
Washington, DC.
RE: Letter for the Record--``The State of Transportation and Critical
Infrastructure: Examining the Impact of the COVID-19
Pandemic''
Dear Chairman Wicker and Ranking Member Cantwell:
The Motor & Equipment Manufacturers Association (MEMA) is the
leading trade association representing U.S. motor vehicle parts
suppliers. These companies manufacture and remanufacture components,
technologies, and systems for use in passenger vehicles and heavy
trucks. In total, vehicle parts manufacturers represent the largest
sector of manufacturing jobs in the United States, directly employing
over 871,000 Americans in all 50 states and generating 2.4 percent of
U.S. GDP.\1\ On behalf of this industry, I respectfully submit this
letter for the record to the Committee summarizing the state of the
motor vehicle supplier industry and the impact of COVID-19.
---------------------------------------------------------------------------
\1\ MEMA represents its members through four divisions: Automotive
Aftermarket Suppliers Association (AASA); Heavy Duty Manufacturers
Association (HDMA); MERA, The Association for Sustainable
Manufacturing, and Original Equipment Suppliers Association (OESA).
Suppliers are the largest employers of manufacturing jobs in the United
States, directly employing over 871,000 workers with a total employment
impact of 4.2 million jobs.
---------------------------------------------------------------------------
MEMA applauds your leadership in holding this hearing. Motor
vehicle parts suppliers have been dramatically impacted by the COVID-19
global pandemic. With over 1,000 company members with facilities in all
50 states, MEMA represents suppliers who support the economies in
communities across the nation, and the impact of the pandemic on our
industry resonates throughout the country.
The supplier industry is interdependent, making it impossible to
separate the economic success of a supplier from its customer, whether
that customer is a passenger car manufacturer, a truck manufacturer, or
aftermarket distributor, or retailor. In addition to this economic
interdependence, the industry is also made up of a complex supply
chain, with each tier critically important to the industry's ability to
manufacture vehicles. Past disruptions to the supply chain, whether a
result of a factory fire or natural disaster, for example, have led to
temporary closures of supplier facilities and vehicle assembly plants.
These closures demonstrate the integration within the industry and the
potential domino effect of even a few suppliers facing insolvency.
At the same time, this industry is facing a time of new, dynamic
technical advances, such as advanced driver-assistance systems (ADAS),
automated vehicle technologies, advanced fuel efficiency technologies,
and cybersecurity measures to protect motorists. The supplier industry
in the United States has been a leader in developing and testing
technologies that meet these important demands. Since suppliers are
responsible for two-thirds of the value of a new vehicle, the
deployment and commercialization of these technologies are dependent on
the health of the supplier industry. Continuing to provide the U.S.
consumer with increasingly cleaner, safer vehicles will require
extensive, long-term financial commitments from the entire industry. If
the supplier industry falters or fails, the entire automotive industry
will suffer, ultimately harming the competitiveness of the U.S.
automotive industry.
As the country slowly and safely begins reopening, MEMA welcomes
the opportunity to share with the Committee the needs of the supplier
industry and the challenges currently faced by our member companies.
I. Supplier Response to Immediate Needs to Address Health Crisis
In many ways, motor vehicle parts manufacturers are solution
providers. Typically, these companies seek solutions to challenges,
such as vehicle safety, repair needs, or emissions. During the COVID-19
pandemic, suppliers were able to quickly pivot normal operations to
manufacturing critically needed supplies. These efforts have been
focused on addressing the immediate medical and public health crisis
facing the U.S. Suppliers and their employees used their skills, know-
how, and compassion to assist in a time of need.
Companies all over the country are taking part in the response
effort. For example, many suppliers have used 3D printing technology
and other manufacturing processes to make plastic face masks and
shields. Other companies have manufactured plexiglass patient
enclosures. These shields, masks, and enclosures have been donated to
hospitals and clinics, protecting front line workers who are treating
and testing patients. Companies have also created open-source plans for
3D-printed and injection molded face shields.
Suppliers have significant purchasing power, the ability to
manufacture in large quantities, and expertise in efficient, lean
manufacturing practices. In many instances, companies are able to
leverage their talents to assist medical device manufacturers improve
efficiency to meet increased demand on large production lines that have
not experienced this type of demand previously.
Companies with expertise in chemical manufacturing have been able
to produce hand sanitizer and disinfectant for employee and facility
use as well as providing supplies to local hospitals. Similar companies
with skills in packaging have aided in limiting packaging shortages,
ensuring that these products remain available for medical and personal
use.
Logistics experts and member companies with purchasing expertise
and shipping capabilities have been able to leverage those skills to
assist in acquiring and delivering critical medical equipment, PPE, and
other necessary supplies to areas of the country hit hardest by the
virus. In several instances, these efforts have been coordinated with
state agencies.
The independent aftermarket has played a large role in providing
timely products for maintenance and repair of emergency vehicles and
the personal vehicles of first responders and frontline workers.
Aftermarket suppliers have worked with independent repair shops to
provide necessary parts for repair and maintenance services to
emergency personnel. Suppliers shipping parts and equipment to repair
facilities rely on a fleet of essential workers, such as truck drivers
and warehouse workers. These combined efforts have ensured that first
responders and frontline workers are able to get to their jobs or to
patients.
Other suppliers have worked within their communities to help
address the economic crisis facing many families and individuals since
states began implementing shelter in place orders. These efforts have
included donations to charities, food banks, and food pantries in their
communities to help Americans who have lost their jobs.
As a trade association, MEMA's Original Equipment Suppliers
Association (OESA) worked closely with the Alliance for Automotive
Innovation to create ``Health and Safety Resources for Suppliers in a
Coronavirus Environment.'' \2\ These resources were developed and
supported collectively by several large tier one suppliers and vehicle
manufacturers to help protect the safety of employees and visitors on
the premises of supplier facilities as it relates to the coronavirus.
Recommended practices in the document include guidance from the Centers
for Disease Control and Prevention (CDC), the World Health Organization
(WHO), and the Occupational Safety and Health Administration (OSHA).
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\2\ https://www.oesa.org/health-and-safety-resources-suppliers-
coronavirus-environment
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II. Liquidity and Financial Needs of Industry
Motor vehicle parts manufacturers are the linchpin of U.S. vehicle
manufacturing. As vehicle manufacturing shuttered across the United
States, motor vehicle suppliers also limited or closed operations. Each
supplier represents jobs, financial stability, and the critical bridge
for the entire industry. The failure of a single supplier could impact
vehicle production throughout the country and the continued viability
of the industry, both present and future, depends on the health of the
supplier industry.
While there are many large suppliers with operations in the U.S.,
two-thirds of the industry's employment is generated by small and mid-
sized manufacturers.\3\ These small and mid-sized manufacturers are
often U.S.-based, family-owned companies with limited financial
resources to meet the growing needs generated by this unforeseen
crisis. Without these entities, communities and states throughout the
country will lose major employers and contributors to the long-term
employment and economic well-being of the entire nation. Furthermore,
the financial viability of the entire automotive industry is dependent
on these suppliers
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\3\ https://www.mema.org/sites/default/files/MEMA_ImpactBook.pdf
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Parts suppliers usually receive payment from auto manufacturers 45
days after the delivery of goods. As you know, auto production has been
at a stand-still since late March, with operations only recently re-
opening. Most suppliers have not had receivables since early May and
will not have new receivables for at least the next six weeks. This
leaves suppliers with no access to capital for start-up costs.
Most small and mid-sized manufacturers were not eligible for PPP
funding and have been unable to receive financing through traditional
means. A recent industry survey indicated that 15-20 percent of the
supplier respondents have eight weeks or fewer before declaring
insolvency. Private funds will not be available to companies about to
become insolvent, creating the need for government guarantees.
As vehicle manufacturing resumes, these suppliers will have little
ability to raise capital to pay for wages, raw materials, or other
start-up costs, hampering the ability for vehicle manufacturing to
return to this country. The current projections for supplier solvency
assume a specific level of business recovery. If recovery is delayed or
slowed, the number of companies facing financial insolvency will
increase significantly.
Auto manufacturing needs a healthy and functioning supply base to
efficiently restart manufacturing. Although current programs under the
CARES Act have provided critical assistance for the retention of
employees, additional funds must be targeted for the purchase of raw
materials and other critical costs. MEMA has joined with members of the
Michigan delegation in urging the Trump administration to set aside
necessary capital from the Main Street Lending Program to create just
such a fund. We are anxious to work with all parties to seek this
funding. Our continued viability as an industry depends on it.
III. Challenges Presented by Complex North American Supply Chain
(Mexico)
The North American supply chain is critical to the current and
future success of operations in the United States. Just like the United
States, Canada and Mexico have struggled to re-open manufacturing
operations. Recently, Mexico declared vehicle manufacturing an
essential industry, yet suppliers throughout that country have been
unable to receive the necessary government approvals to operate. This
limits the ability of U.S. operations to resume production.
MEMA understands the public health issues facing Mexico, and we
have been proud to assist in the manufacture of personal protective
equipment (PPE) and components and parts for ventilators and other
essential medical devices in Mexico and across North America. Through
MEMA's Original Equipment Suppliers Association division, (OESA), we
have worked directly with automakers to develop recommended health and
safety resources for all suppliers. Many of our members have done
likewise. These resources are based on CDC guidance and World Health
Organization publications and cover fundamental topics of workplace
safety: education and communication, prescreening of personnel, social
distancing, cleaning and sanitizing protocols, and other necessary
steps. The industry continues to work relentlessly to plan for the
return of our workforce in Mexico and the safe opening of facilities
throughout the country.
We urge this Committee to work closely with the Trump
administration to create a North American system that mirrors the CISA
Guidance. We believe we must take this opportunity to reflect and act
on our current challenges and limit the likelihood of repetition in the
future.
IV. Needs for Future Investments (R&D, Reshoring)
The motor vehicle manufacturer and supplier industries are leaders
in the research and development of advanced vehicle technologies
critical to manufacturing today's vehicles and creating the next
generation of vehicles. Suppliers have long worked to develop
technologies that improve vehicle performance, safety, and fuel
efficiency through a variety of advanced components and systems. In
fact, suppliers account for as much as 70 percent of the value of a
motor vehicle.
These investments have led to the U.S. continuing to lead the world
in advanced vehicle technology manufacturing. The future of these
investments is at risk as the economic health and vitality are in
turmoil.
Investment in innovation relies on a predictable funding stream.
Operating margins within the supplier industry are slim. At the same
time, research and development for technologies, such as those
necessary for AVs, require significant capital investment. Uncertain or
lost income, such as that experienced by suppliers since late March,
puts the future of these investments at risk.
We urge the Committee to work with us to find solutions to allow
the U.S. to remain a global leader in the development and deployment of
advanced vehicle technologies. Federal efforts, such as the creation of
a new tax credit or a mechanism to support the onshoring of
manufacturing activities, such as moving operations to the U.S.,
investing in capital equipment, to support the purchase of property or
facilities, investing in research and development, and more, will be
essential to reestablishing these domestic investments and ensuring
continued U.S. innovation.
V. Incentives to Spur Demand
Our future success will depend on production and vehicle sales.
While we are not asking Congress to address this at this time, economic
stimulus may become necessary in the future. Steps Congress could take
include providing the American consumer an incentive to purchase a
vehicle. As Congress considers future options, any economic stimulus
program must be accessible to all citizens, no matter their economic
circumstances. Therefore, any incentive program should not be based on
vehicle scrappage or even a vehicle trade-in. In this regard, we would
urge Congress to consider providing a scaled incentive to consumers who
buy a used vehicle. We look forward to working with the Committee on
these issues.
VI. Conclusion
The ability of the U.S. economy to rebound from the impacts of
COVID-19 will rely on a number of factors, including the response of
the Federal government. Congress has taken significant steps to support
the economy since mid-March, including passing the CARES Act. The
ability of this country to develop and implement new vehicle
technologies is dependent on the success of suppliers.
MEMA welcomes the opportunity to discuss this with the Committee.
Should you have questions or concerns, please contact Ann Wilson,
senior vice president, government affairs at [email protected] or 202-
320-7293 or Catherine Boland, vice president, legislative affairs at
[email protected] or 301-509-2791.
Sincerely,
Bill Long,
President and CEO.
______
National Stone, Sand & Gravel Association
Alexandria, VA, June 3, 2020
Hon. Roger Wicker,
Chairman of the Senate Committee Commerce, Science, and Transportation,
Washington, DC.
Hon. Maria Cantwell,
Ranking Member on the Senate Committee Commerce, Science, and
Transportation,
Washington, DC.
Dear Chairman Wicker and Ranking Member Cantwell,
On behalf of the over 400-member companies of the National Stone,
Sand, & Gravel Association (NSSGA), I welcome the Commerce Committee's
hearing today titled The State of Transportation and Critical
Infrastructure: Examining the Impact of the COVID-19 Pandemic. As you
know, a strong and efficient supply chain is necessary for a
competitive national economy. Given the recent COVID-19 pandemic and
subsequent economic downturn, your committee's focus regarding our
national supply chain and critical infrastructure is vital as
businesses reopen and resume normal operations.
NSSGA is the leading advocate and resource for the aggregates
industry, who provide the critical raw materials found in virtually
every surface transportation project, including roads, highways,
bridges, runways, pipelines and much more. Our membership represents
more than 90 percent of the crushed stone and 70 percent of the sand
and gravel produced annually in the United States. Further, aggregate
producers are at the beginning of the construction supply chain, and
the efficiency that our members can achieve through its supply chain
networks has a direct impact on various industries down the supply
chain, like contractors, home builders and road pavers.
Because of the nature and weight of materials NSSGA members
transport, many in our industry move aggregate products via truck, the
most popular mode of freight transportation. While your committee
examines relevant policies that advances trucking efficiency and
safety, NSSGA supports the recent Federal Motor Carrier Safety
Administration (FMCSA)'s new Hours-ofService (HOS) rule. The HOS rule
harmonizes the on-duty operations of long-haul and short-haul truckers
from 12 to 14 hours, expands the short-haul exemption from 100 to 150
air miles and broadens the situations covered by ``adverse
conditions''.
While we support FMCSA's new HOS rule, we do encourage Congress to
support a clear, uniform HOS exemption for thousands of companies
involved in construction. Many construction companies must manage
various trucks, raw materials, operations and routes at a single
construction site and following compliance protocol is increasingly
difficult. Despite FMCSA's recognition and effort to provide certain
HOS exemptions for the construction industry, companies continue to
have difficulty adhering to certain exemptions for either the vehicles
they operate, the materials they transport, the drivers the employ or
the routes utilized for a certain jobsite. Currently, FMCSA has granted
or has pending HOS requests with multiple construction industry
associations, but narrow and individualized requests have resulted in
misunderstanding among company management, drivers and law enforcement
officials, all of whom must deal with daily compliance despite the
variability previously described.
Aside from improving enforcement and ensuring the industry is
better educated regarding HOS exemption, a uniform construction HOS
exemption would also minimize the operation of highway and road work
zones, where workers are exposed to traffic while critical paving and
road refurbishment is conducted. A uniform HOS exemption would ensure
that road work zones operate more efficiently, allowing a project's
schedule to move expeditiously versus the current schedules. Currently,
vehicles needed for project completion must wait or adhere to certain
HOS rules, even in cases where a truck is only moving a few miles.
I appreciate your committee's leadership on this issue and
continued work examining our national supply chain. As you continue to
examine these issues and others related to trucking policy, please
consider NSSGA as a resource.
Sincerely,
Michael W. Johnson,
President and CEO,
National Stone, Sand and Gravel Association.
cc: Members of the Senate Commerce, Science and Transportation
Committee
______
Prepared Statement of Catherine Chase, President, Advocates for Highway
and Auto Safety
Introduction
Advocates for Highway and Auto Safety (Advocates) is a coalition of
public health, safety, law enforcement and consumer organizations,
insurers and insurance agents that promotes highway and auto safety
through the adoption of Federal and state laws, policies and
regulations. Advocates is unique both in its board composition and its
mission of advancing safer vehicles, safer motorists and road users,
and safer infrastructure. We thank the Committee for holding this
important hearing and respectfully request that this statement be
included in the hearing record.
The carnage and expense borne from crashes on our roadways are
unacceptable. Newly released estimates from the United States
Department of Transportation (U.S. DOT) show that in 2019, 36,120
people were killed in traffic crashes.\1\ This represents a slight
decrease from 2018, during which 36,560 people were killed and 2.7
million people were injured in motor vehicle crashes.\2\ Moreover,
crashes impose a financial toll of well over $800 billion in total
costs to society and $242 billion in direct economic costs, equivalent
to a ``crash tax'' of $784 on every American.\3\
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\1\ National Center for Statistics and Analysis. (2020, May). Early
estimate of motor vehicle traffic fatalities for 2019
(CrashStats Brief Statistical Summary. Report No. DOT HS 812
946). National Highway Traffic Safety Administration.
\2\ Statistics are from the U.S. Department of Transportation
unless otherwise noted.
\3\ ``The Economic and Societal Impact of Motor Vehicle Crashes,
2010,'' NHTSA (2015).
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Fatal truck crashes continue to occur at an alarmingly high rate.
In 2018, the number of individuals killed in crashes involving a large
truck increased to 4,951. With the exception of 2014, the number of
fatalities in crashes involving large trucks has been steadily on the
rise since 2003. Since that time, the number of fatalities in large
truck crashes has increased by 46 percent. In addition, despite an
estimated decrease of approximately one percent in overall crash deaths
in 2019, fatal crashes involving large trucks are estimated to have
increased once again, the fifth year-to-year increase. Although we are
not in ordinary times, our Nation remains dependent on trucking to
provide goods and supplies. Advocates continues to be supportive of and
grateful for truck drivers' personal sacrifices and commitment to
accomplishing their job safely. Improving the level of safety on the
roadways for truck drivers and all motorists sharing the roadways with
them must be prioritized. Most certainly, current truck safety
regulations should not be further eroded.
The COVID-19 pandemic has brought about unprecedented public health
and economic hardship and its effects have been felt by all sectors of
society, including transportation. Advocates recognizes the unique
challenges this has posed for the automotive and trucking industries
and commends their contributions to the relief efforts. While it may be
some time before we know the full brunt of the impacts, early reports
and data have shown that while overall vehicle miles traveled (VMT) may
be down, dangerous behavior like speeding and reckless driving are on
the rise. As reported by The Washington Post on May 11, 2020 in the
article, ``The coronavirus pandemic emptied America's roadways. Now
speeders have taken over,'' ``'The trend is very concerning,' said
Catherine Chase, president of Advocates for Highway and Auto Safety.
`At a time of national crisis, drivers should not be turning our
roadways into racetracks.' '' \4\ A local Mississippi ABC affiliate,
WAPT 16, reported on this issue on May 21, 2020 with the story ``MHP
says extreme speeding has increased across the state.'' \5\ Similar
reports from Washington State were detailed in an April 18, 2020
article in The Columbian, ``Officials: Traffic is down, speeding is up
in Clark County.'' \6\
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\4\ Luz Lazo, ``The coronavirus pandemic emptied America's
roadways. Now speeders have taken over.'' Wash. Post (May 11, 2020).
\5\ Marcus Hunter, MHP says extreme seeding has increased across
the state, WAPT News (May 21, 2020).
\6\ Jerzy Shedlock, Officials: Traffic is down, speeding is up in
Clark County, The Columbian (Apr. 18, 2020).
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In fact, the National Safety Council recently reported that in
March, the fatality rate was up 14 percent over the same month in
2019.\7\ As states ease stay-at-home restrictions and traffic volumes
increase, Congress as well as state and local government policymakers
must consider impacts to roadway safety and advance measures designed
to keep drivers, occupants, pedestrians, bicyclists and other road
users safe. In this statement, Advocates details our recommendations to
achieve that objective.
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\7\ NSC, Motor Vehicle Fatality Rates Jump 14 percent in March
Despite Quarantines (May. 20, 2020).
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Our Nation is at a Transformational Time in Transportation History with
Innovative and Cost-Efficient Safety Solutions Proven to be
Effective and Available
Every day on average, over 100 people are killed and nearly 7,500
people are injured in motor vehicle crashes. Yet, proven solutions are
currently available that can prevent or mitigate these senseless
tragedies. The National Highway Traffic Safety Administration (NHTSA,
``Agency'') currently values a life lost in a crash at $9.6 million.
Each one of these preventable deaths not only irreparably harms
families and communities, but they also impose significant economic
costs on society that can and should be avoided.
Advocates remains optimistic that in the future autonomous vehicles
(AVs) may bring about meaningful and lasting reductions in motor
vehicle crashes. However, that potential remains far from a near-term
certainty or reality. The fact remains that there is no data or
documentation proving AV technology as it currently stands improves
road safety. In fact, NHTSA released a notice on March 17, 2020 which
stated that the safety potential of automated driving systems is
``unsubstantiated and the impacts unknown.'' \8\ Dr. Missy Cummings, a
leading AV expert and director of Duke University Humans and Autonomy
Laboratory, noted in a recent article that ``[s]elf-driving systems,
even with their multiple sensors and software advancements, still
cannot reliably work in rain and snow conditions (Zang et al., 2019),
during time of low sun angles (Dowling 2019), and often where lines on
the road are either non-existent or with faded paint (Sage 2016).'' \9\
While endeavoring to improve safety, human driver error cannot be
replaced with human coding or computer errors--mistakes that could have
widespread and serious consequences.
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\8\ Occupant Protection for Automated Driving, NHTSA, Vol. 85, No.
61, Fed. Reg, March 30, 2020, NPRM, Docket No. NHTSA-2020-0014.
Available at: https://www.govinfo.gov/content/pkg/FR-2020-03-30/pdf/
2020-05886.pdf
\9\ Cummings, M.L, ``Rethinking the maturity of artificial
intelligence in safety-critical settings,'' AI Magazine, in review.
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Therefore, in the short-term Advocates urges Congress to require
that advanced technologies proven to be effective in preventing and
mitigating crashes be standard equipment with minimum performance
standards. Advocates is a long-time proponent of this strategy which
has produced numerous safety successes including airbags, electronic
stability control, and most recently rearview cameras. In fact, in 2015
NHTSA estimated that since 1960, more than 600,000 lives have been
saved by motor vehicle safety technologies.\10\ Furthermore, the
National Transportation Safety Board (NTSB) has included increasing
implementation of collision avoidance technologies in its Most Wanted
Lists of Transportation Safety Improvements since 2016.\11\
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\10\ Lives Saved by Vehicle Safety Technologies and Associated
Federal Motor Vehicle Safety Standards, 1960 to 2012, DOT HS 812 069
(NHTSA, 2015).
\11\ NTSB Most Wanted List Archives, https://ntsb.gov/safety/mwl/
Pages/mwl_archive.aspx
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Currently available proven collision avoidance systems include
automatic emergency braking (AEB), lane departure warning (LDW), blind
spot detection (BSD), rear AEB and rear crosstraffic alert. The
Insurance Institute for Highway Safety (IIHS) has found that:
AEB can decrease front-to-rear crashes with injuries by 56
percent;
LDW can reduce single-vehicle, sideswipe and head-on injury
crashes by over 20 percent;
BSD can diminish injury crashes from lane change by nearly
25 percent;
Rear AEB can reduce backing crashes by 78 percent when
combined with rearview camera and parking sensors; and,
Rear cross-traffic alert can reduce backing crashes by 22
percent.\12\
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\12\ IIHS, Real world benefits of crash avoidance technologies,
available at: https://www
.iihs.org/media/259e5bbdf859-42a7-bd54-3888f7a2d3ef/e9boUQ/Topics/
ADVANCED%20DRI
VER%20ASSISTANCE/IIHS-real-worldCA-benefits.pdf
These crash avoidance safety systems are often sold as part of an
additional, expensive trim package along with other non-safety
features, or included as standard equipment only in high end models or
vehicles. Just this week, Consumer Reports released a report that found
an astounding upcharge of more than $16,000 for AEB with pedestrian
detection in the second most popular vehicle sold in the U.S.\13\ This
inordinate charge underscores Advocates' long-held position that
critical vehicle safety technology must be standard equipment and
provided to everyone purchasing a new vehicle. Moreover, there are
currently no minimum performance standards to ensure these technologies
function as expected. And, the IIHS has also found that while nighttime
visibility is essential for safety, few vehicles are equipped with
headlights that perform well.\14\ Federal Motor Vehicle Safety Standard
(FMVSS) 108 should be upgraded to improve headlight performance.
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\13\ Douglas, E., A High Price on Safety, Consumer Reports (Jun. 1,
2020).
\14\ IIHS, Headlights improve, but base models leave drivers in the
dark (Nov. 29, 2018).
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Unfortunately, directives from Congress are needed to accomplish
these needed improvements due to Agency inaction and industry
resistance. Voluntary industry agreements have been demonstrated to be
ineffective as most recently evidenced by the March 2016 agreement
among 20 automakers to have AEBs in most new light vehicles by 2023. As
of December 2019, two manufacturers, which account for nearly a third
of the U.S. auto market, demonstrate this lackluster response to the
detriment of the motoring public. Only 29 percent of General Motors'
vehicles and 9.5 percent of Fiat Chrysler vehicles were sold with AEB
between September 1, 2018 through August 31, 2019. Similarly, the
voluntary agreement announced by industry in September 2019 on
technology to prevent hot car deaths of children prolonged the timeline
to get this equipment into new cars even though it is available at a
very minimal cost now. In fact, General Motors announced it would equip
its new cars with technology that ``can detect motion as subtle as the
breathing of an infant sleeping in a rear-facing child safety seat'' in
2001 with the intent to begin rollout in 2004.\15\ This voluntary
agreement harkens back to that empty promise while children continue to
needlessly die. The agreement also failed to include the critical
component that the systems must detect and alert to the presence of
children who have been unknowingly left in or gained access to hot
cars.\16\ Moreover, at any time, any or all automakers could decide
they no longer want to comply with the agreement without any
ramifications, underscoring the importance of Congressional action.
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\15\ General Motors News Release, ``General Motors Announces
Important New Technology to Help Save Children Trapped in Hot Cars,''
(April 26, 2001).
\16\ Auto Alliance Driving Innovation and Global Automakers,
Helping to Combat Child Heatstroke, Automakers Commit to Introducing
New Vehicles with Rear Seat Reminder Systems (Sept. 4, 2019).
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Legislation already has been introduced in the 116th Congress
which, if enacted, would achieve the goal of providing lifesaving
technologies as standard equipment on new motor vehicles. The
Protecting Roadside First Responders Act (S. 2700/H.R. 4871) directs
the U.S. DOT to require certain crash avoidance technologies that meet
a minimum performance requirement in all new vehicles. We thank
Committee Member Senator Tammy Duckworth (D-IL) for her leadership in
co-sponsoring this measure and urge the Committee to advance this
legislation promptly. Congress should also enact the 21st Century Smart
Cars Act (H.R. 6284), the Safe Roads Act of 2019 (H.R. 3773) and the
School Bus Safety Act of 2019 (S.2278/H.R. 3959), legislation which
would collectively require advanced technologies in new passenger cars,
commercial motor vehicles (CMVs) and school buses. Again, we commend
Senator Duckworth (D-IL) for sponsoring S. 2278. Additionally, we thank
Senator Tom Udall (D-NM) for his career-long dedication to stopping
impaired driving and urge the Committee to advance S. 2604, the Reduce
Impaired Driving for Everyone (RIDE) Act, introduced with fellow
Committee member Senator Rick Scott (R-FL), also a tremendously
committed leader to end impaired driving. Lastly, we thank Chairman
Wicker and Ranking Member Cantwell for their leadership on the Hot Cars
Act (S. 1601/H.R. 3593), which will help prevent child hot cars
fatalities. Action by this Committee to require the technologies
addressed in these bills will save lives, reduce injuries and contain
costs in the near-term.
On the path to AVs, requiring minimum performance standards for
these foundational technologies will ensure the safety of all road
users while building consumer confidence in the capabilities of crash
avoidance technologies.
Industry Calls for Swiftly Moving AV Legislation are Fraught with
Baseless Claims and Unfounded Assumptions
AVs, also known as driverless cars, are being developed and tested
on public roads without sufficient safeguards to protect both those
within the AVs and everyone sharing the roadways with them without
express consent. An artificial rush to pass legislation is being fueled
by AV manufacturers racing to be the first to market and recoup their
substantial investments, already surpassing $100 billion. Just this
week, it was reported that Volkswagen finalized a deal with Ford to
invest $2.6 billion in Argo AI.\17\ Proceeding with legislation lacking
commonsense minimum standards, protections and regulations will
significantly undermine safety as well as risk public acceptance and
the ultimate success of these vehicles. Most recently, some proponents
of AVs have also been using the COVID-19 pandemic as a justification
for rushing a fatally flawed bill, even going as far as pushing it to
be included in a future relief package. A group of 80 diverse
stakeholders wrote to Senate and House leadership on April 15, 2020
expressing staunch opposition to this path forward.
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\17\ Eric D. Lawrence, ``VW completes $2.6B self-driving deal
connected with Ford,'' Detroit Free Press (Jun. 2, 2020).
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Numerous misguided and misleading arguments to fast-track AV
legislation in response to the COVID-19 pandemic have been put forth.
However, the inside-the-Beltway lobbying effort which is on overdrive
should not be allowed to bulldoze well-founded and well-documented
concerns including the following.
Public acceptance of AVs is critical to its development and success,
but the public remains skeptical.
Several public opinion polls show a high level of skepticism and
fear about the technology, and for good reason. For example, earlier
this year Advocates commissioned an independent public opinion poll
from ENGINE INSIGHTS which revealed that 85 percent of respondents said
they would be concerned about sharing the road with driverless cars as
a motorist, bicyclist or a pedestrian.\18\ Notably, 68 percent said
their concerns would be allayed if performance requirements were in
place. Even a recent industry-sponsored poll showed a majority of
people have concerns about AVs that do not have some type of government
approval.\19\ This is consistent with previous polling including an
April 2019 Reuters/Ipsos opinion poll which found that 64 percent of
Americans said they would not buy a self-driving car \20\ and one by
the American Automobile Association (AAA) in March 2019 which found
that 71 percent of U.S. drivers surveyed would be afraid to ride in a
fully self-driving vehicle.\21\ As Congress moves forward with
legislation addressing the development and deployment of driverless
cars, these critical findings about public attitudes should be
informative, illuminating and instructive, and most certainly not
ignored.
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\18\ Advocates for Highway and Auto Safety, Engine Insights CARAVAN
Survey: Public Concern about Driverless Cars is Strong, and the Support
for Performance Requirements is Clear, January 2020.
\19\ Partners for Automated Vehicle Education (PAVE), Survey USA
Poll, February-March 2020.
\20\ Americans still don't trust self-driving cars, Reuters/Ipsos
poll finds, April 2019.
\21\ AAA Annual Automated Vehicle Survey, March 2019.
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The National Transportation Safety Board has issued sound and salient
recommendations.
They must be used to inform policy decisions.
Several serious crashes involving cars equipped with autonomous
technology have already occurred, many of which have been subject to
investigation by the NTSB. These investigations have, and will continue
to identify safety deficiencies, determine contributing causes, and
recommend government and industry actions to prevent future deadly
incidents. Advocates urges Congress to heed critical information from
our Nation's preeminent crash investigators. Findings from all these
investigations should be released and incorporated as applicable into
any proposed legislation. The findings are essential to developing
sound and safe public policies. As stated by NTSB Chairman Robert
Sumwalt during a November 19, 2019, meeting, ``our entire purpose for
being here is to learn from tragic events like this so that they can be
prevented in the future. . .This investigation has the ability to have
far reaching implications down the road.'' \22\
---------------------------------------------------------------------------
\22\ NTSB Board Meeting: Collision Between Vehicle Controlled by
Developmental Automated Driving System and Pedestrian (Nov. 19, 2019).
---------------------------------------------------------------------------
During this meeting, the NTSB considered the probable cause of the
tragic crash that occurred on March 18, 2018, in Tempe, Arizona, in
which Elaine Herzberg was killed by an Uber test vehicle equipped with
self-driving features. Among the key issues the NTSB identified was the
glaring need for sensible safeguards, protocols and regulations for AVs
which are not yet being sold but are being tested on public roads. Some
relevant and compelling quotes from the NTSB hearing buttress the views
of consumer and safety groups:
The lessons of this crash do not only apply to Uber ATG
[Advanced Technologies Group] and they're not limited to just
simply something went wrong and now it's fixed. Rather, it's
something went wrong and something else might go wrong unless
its prevented. . .This crash was not only about Uber ATG test
drive in Arizona, this crash was about testing the development
of automated driving systems on public roads. Its lessons
should be studied by any company testing in any state. If your
company tests automated driving systems on public roads, this
crash, it was about you. If you use roads where automated
driving systems are being tested, this crash, it was about you.
And if your work touches on automated driving systems at the
Federal or state level, guess what, this crash, it was about
you.
--NTSB Chairman Robert Sumwalt \23\
---------------------------------------------------------------------------
\23\ Id.
NHTSA's mission is to save lives, first and foremost, to
prevent injuries and to reduce economic costs due to road
traffic crashes through education, research, safety standards,
which we are lacking here, and enforcement activity but first
and foremost it's to save lives . . . In my opinion, they have
put technology advancement here before saving lives.
--NTSB Board Member Jennifer Homendy \24\
---------------------------------------------------------------------------
\24\ Id.
---------------------------------------------------------------------------
The U.S. is not falling behind other countries in development of AVs.
No demonstrable evidence has been put forth to support the fear-
inducing claim that the U.S. is falling behind other countries in AV
development. Rather, according to KPMG's 2019 Autonomous Vehicle
Readiness Index, the U.S. is ranked 4th in the world, behind the
Netherlands, Singapore, and Norway. China, by comparison is ranked
20th, down from 16th in the index the prior year.\25\ Other countries
are taking a more calculated, careful and cautious approach. For
example, in China, AV operations generally remain experimental. In fact
it was just recently reported that they have delayed the goal of
widespread self-driving deployment to 2025.\26\ Articles and analyses
describing plans by China to lead technology development identify
setting standards as key.\27\ Moreover, no country is selling fully
automated vehicles to the public and by many accounts, none will do so
for decades.\28\ Recently, many companies have suspended on-the-road
testing due to the COVID-19 outbreak.\29\ While the U.S. is not behind
other countries in developing and deploying AVs, where we do
significantly lag other countries is in establishing reasonable and
comprehensive safeguards. This is essential to assuring that the
progress of AV development to a market ready product occurs without
needlessly jeopardizing or diminishing public safety.
---------------------------------------------------------------------------
\25\ Autonomous Vehicles Readiness Index, KPMG.
\26\ Jill Shen, China delays self-driving car deployment goal to
2025, Technode (Feb. 24, 2020).
\27\ Power is `up for grabs': Behind China's plan to shape the
future of next-generation tech, A. Kharpal, CNBC Markets, Apr. 26,
2020.
\28\ Lawrence Ulrich, Driverless Still a Long Way From Humanless,
N.Y. Times (Jun. 20, 2019); Level 5 possible but ``way in the future'',
says VW-Ford AV boss, Motoring (Jun. 29, 2019).
\29\ Andrew J. Hawkins, Coronavirus shows there's no such thing as
a totally human-free self-driving car (Mar. 18, 2020).
---------------------------------------------------------------------------
Industry leaders confirm that widespread sale and deployment of AV
technology are still decades away.
There is an alarming disconnect between the readiness of the
technology and the contrived urgency to pass legislation to allow for
widespread sale and deployment. Numerous industry executives and
technical experts have stated that the technology is not ready now and
may not be ready for years to come. Just last week, it was reported
that Bloomberg New Energy Finance ``doesn't expect vehicles with Level
Four automation to start gaining traction until 2034.'' \30\ In a March
9, 2020, open letter, Starsky Robotics founder Stefan Seltz-Axmacher
shared his observations on the race to driverless vehicles, ``There are
too many problems with the AV industry to detail here: the professorial
pace at which most teams work, the lack of tangible deployment
milestones, the open secret that there isn't a robotaxi business model,
etc. The biggest, however, is that supervised machine learning doesn't
live up to the hype,'' and ``[t]he consensus has become that we're at
least 10 years away from self-driving cars.'' \31\ When even experts
with tremendous professional and financial stake acknowledge the
shortcomings, challenges and elongated timeline for AV delivery,
Congress should be paying heed to this prognosis.
---------------------------------------------------------------------------
\30\ Alex Webb, Amazon will take robot cars to a whole new level,
The Seattle Times (May 31, 2020).
\31\ Seltz-Axmacher, Stefan, ``The End of Starsky Robotics'',
Medium, March 19, 2020. Available here: https://medium.com/starsky-
robotics-blog/the-end-of-starsky-robotics-acb8a6a8a5f5
---------------------------------------------------------------------------
The potential benefits of widespread use of unmanned delivery vehicles
are currently unknown. But, the concerns and challenges with
unproven self-driving technology lacking safeguards are clearly
known.
Removing passengers from an AV does not improve safety for those
sharing the road with them, especially vulnerable roads users such as
bicyclists and pedestrians. In 2018, 6,227 pedestrians were killed on
U.S. roads marking the highest number of pedestrian deaths in thirty
years. That year, 857 pedalcyclists were also killed; a six percent
increase over 2017, according to NHTSA. To date, there has been no
evidence that AVs will correctly ``see'' and respond to these
populations. In fact, bicyclists have reported being ``clipped'' or hit
by AVs even with ``safety drivers'' behind the wheel. Without proper
safeguards, it is possible road conditions will worsen, especially if
AVs lead to more overall vehicles on the roads.
There are presently no Federal regulations to ensure that driving
automation systems of unmanned vehicles in use on our Nation's roads
are safe to operate. The use of vehicles with autonomous driving
systems for delivery (food, medical and other critical supplies) during
the COVID-19 pandemic has been extremely limited and is occurring with
significant human oversight and intervention because these systems are
not capable of fully autonomous driving even on roads devoid of most
traffic.\32\ Media reports of unmanned AV operations note that they are
occurring at low speeds, yet the risk for serious injury or death for
pedestrians and bicyclists is significant. At 23 mph the average risk
of serious injury for pedestrians is 25 percent and the risk of death
is 10 percent.\1\ This risk is elevated for older populations. Use of
shared AVs, or possibly even unmanned delivery vehicles, during a
pandemic could potentially be a means of transmitting the virus, rather
than a panacea, without proper procedures and oversight to ensure
vehicles are sanitized between use or delivery.
---------------------------------------------------------------------------
\32\ Autonomous shuttles help transport COVID-19 tests at Mayo
Clinic in Florida, Ford, T., Apr. 2, 2020, Mayo Clinic News Network;
Cruise redeploys some of its self-driving cars to make food deliveries
in San Francisco, Hawkins, A.J., Apr. 29, 2020, The Verge.
---------------------------------------------------------------------------
The disruption to the American economy by the widespread deployment of
AVs could be permanent.
AVs are not guaranteed to create the promised amount of new jobs
but they certainly have the potential to eliminate many. One thing is
certain, if AVs develop to the point that the technology can assume the
entire driving task and are deployed widely, driving occupations will
be decimated. This will have a painful impact on our economy as driving
jobs employ a significant number of American workers. According to the
2018 Census data, more than five million Americans aged 16 and over
work as drivers or motor vehicle operators.\33\ Policies to ensure that
drivers of trucks, buses, taxis and limousines; transit and delivery
workers; and, transportation network company (TNC) drivers and others
are not economically side-lined in the process of introducing self-
driving technology will need to be carefully implemented.
---------------------------------------------------------------------------
\33\ United States Census Bureau, 2018 American Community Survey
Data, Detailed Occupation For the Civilian Employed, Population 16
Years and Over, Table B24114.
---------------------------------------------------------------------------
Once proven to be safe, AVs may improve access and mobility for some,
but not for all without policy to ensure this is achieved.
While AVs have the potential to improve mobility for people with
disabilities, seniors and others, it is imperative that AVs are both
accessible and safe for everyone. Simply equipping a traditional
vehicle with an automated driving system will do little to improve
mobility access for certain members of the disability community. In
order for AVs to improve access for all, the needs of all types of
users must be incorporated into the design of vehicles and the
implementation of services. For example, TNCs, such as Uber and Lyft,
were widely touted to hold the promise of improving the mobility of all
individuals. However, limitations of the number of vehicles with access
for wheelchair users has already resulted in lawsuits by users
underserved by these companies.\34\ Moreover, if an AV transporting a
person with limited mobility or a disability is in a crash, sufficient
crashworthiness and occupant protection standards must be in place to
prevent dangerous or even deadly outcomes.
---------------------------------------------------------------------------
\34\ Independent Living Resource Center, a Judith Smith, Julie
Foller, Sascha Bittner, Tara Ayres, and Community Resources for
Independent Living vs Lyft, Available here https://dralegal.org/
wpcontent/uploads/2019/03/001_P_Complaint_Accessible.pdf
O'Hanlon vs Uber Technologies, Inc. Available here https://
dralegal.org/wp-content/uploads/2019/06/UberPittsburgh-Complaint.docx
---------------------------------------------------------------------------
NHTSA's recall authority cannot be the stopgap to keep dangerous AVs on
the roadways.
NHTSA's insistence that it will rely on its defect authority to
police AV performance is too little, too late after a serious flaw has
been identified. This view was recently voiced by the NTSB, which found
that the NHTSA's approach is, ``misguided, because it essentially
relies on waiting for problems to occur rather than addressing safety
issues proactively.'' Furthermore, the timeline to issue a recall can
be excessively long. For example, the GM ignition switch defect was
first identified in 2001 but NHTSA was not notified of the issue until
2014 at which time a recall was then issued. At least 124 people died
as a result of the defect. Even still, NHTSA remains egregiously under-
resourced and under-funded for the myriad of challenges the Agency
faces to protect safety on our roadways. Congress should ensure NHTSA
has adequate resources, funds, staff and enforcement authority to
successfully carry out its statutory mission.
Testing of AVs without compliance with FMVSS is unlimited, and the
exemption process already allows for deployment of vehicles not
in compliance with FMVSS.
Vehicles for testing purposes are not required to comply with
safety standards, and there are no limits on the number of vehicles
tested by manufacturers.\35\ If manufacturers desire an exemption from
current FMVSS to pursue their new innovations, a process to request an
unlimited number of exemptions is already available in current law.\36\
In fact at least two companies, Nuro and General Motors, have applied
for exemptions, and Nuro's was granted.\37\ In order to obtain an
exemption from existing Federal safety standards, the law requires
manufacturers to prove that the vehicle will provide an ``equivalent
level'' of safety.\38\ The exemption process does not even require that
a vehicle be built prior to applying for or receiving the exemption.
---------------------------------------------------------------------------
\35\ 49 USC Sec. 30112.
\36\ 49 USC Sec. 30113.
\37\ 85 FR 7826 (Feb. 11, 2020); 84 FR 10182 (Mar 19, 2019).
\38\ Id.
---------------------------------------------------------------------------
Arguments claiming that the exemption process is onerous are
unfounded as the testing process allows ample opportunity to solve any
problems and ready the concept for ``prime time.'' If a manufacturer is
unable to prove that its product can meet this low bar of equivalency
even after the opportunity for unlimited testing without compliance
with any safety standards, it should not be on the market. While
current regulations will need to evolve for AV systems, the process
must be accomplished through a careful, considered and transparent
approach and not by allowing large and wholesale exemptions for
industry without ensuring that the same level of public safety is met.
This has been the successful approach used for new vehicle technology.
Establishing minimum safety standards will ensure certainty and safety
for innovation, production and public sale.
States should not be preempted especially in the absence of Federal
regulation.
States have the authority to uphold safety on their roads and
Congress should not pass legislation to prohibit meeting this
obligation. Governors and Mayors across the country are leading efforts
to protect their citizens from COVID-19 and advance safety policies.
However, legislation proposed in the last Congress and current draft
proposals would prevent states and localities from ensuring the safety
of their citizens on their roads even in the absence of Federal
regulations. Now more than ever, the critical role of states and
localities in protecting the health and safety of its citizens should
be recognized and upheld.
Proposals to provide for the safe deployment of AVs have been offered.
In conclusion, Advocates and our safety partners have made detailed
and comprehensive recommendations in response to specific AV policies
and legislative language. For a complete analysis of legislative
proposals to-date, we refer you to our written testimony submitted to
the Committee for the November 20, 2019 hearing ``Highly Automated
Vehicles: Federal Perspectives on the Deployment of Safety Technology''
as well as our submission in response to the four tranches of staff
draft text released.
Upgrades to America's Infrastructure Are Required for the Safe
Deployment of AVs
AVs will not be operating in closed environments. In fact, they are
already being tested on public roads in Washington D.C., San Francisco
and Pittsburgh, among others. According to the University of Florida
Transportation Institute, at least 80 companies are currently testing
autonomous technology and AVs in the U.S.\39\ It is therefore critical
that our Nation's infrastructure accommodate the safe and successful
deployment of AVs. America's crumbling infrastructure poses significant
safety and economic concerns. The AV industry has often claimed that
the introduction of these vehicles will reduce congestion, improve
environmental quality, and advance transportation efficiency.\40\
However, it is possible, if not probable, that the outcome may be the
opposite. AVs may bring about so-called ``hyper-commuters'' who work
from their vehicles on long commutes to enable living farther from
offices and/or city centers. Likewise, the possibility of empty AVs
adding substantial miles on the roads as they re-position autonomously
after dropping off riders could undermine many of the benefits
claimed.\41\
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\39\ Brookings Institution, Autonomous cars: Science, technology,
and policy (Jul. 25, 2019).
\40\ Self-Driving Coalition For Safe Streets, FAQs.
\41\ Bliss, L., Even Shared Autonomous Vehicles Could Spell Traffic
Disaster, Citylab, May 10, 2017.
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Significant consideration must be given to how AV driving could
change wear patterns on roadways. The lower variance of an AV's
position within a lane could lead to accelerated wear in lanes, and
condensed convoys of automated trucks, commonly known as platooning,
could place further strain on roads and bridges. For example, the
spacing between automated commercial motor vehicles (ACMVs) in a
platoon could have wide-ranging implications. If these large vehicles
travel too closely together, their combined weight load could place
severe stress on a bridge. In addition, lengthy platoons that consist
of many ACMVs could be difficult to pass and affect merging and exiting
from roadways. These are just a few of many critical concerns that must
be evaluated to consider operational constraints for AVs before further
damage is inflicted upon our Nation's roads and bridges.
Taking into account the long-term ramifications, the budgetary
constraints, and necessary coordination among a diverse group of
interested parties when it comes to infrastructure projects at any
level, research is needed now more than ever on the impact of AVs on
our roads and public transit systems. Already, TNCs or ride hailing
companies have been creating congestion and diverting ridership from
transit to single use vehicles in certain cities. The early deployment
of AVs has been predicted by some to follow the TNC model but at lower
costs as a driver will not need to be compensated. Lessons learned from
the growth of TNCs must be applied to the future of AVs. In addition,
further research is required to examine the differing infrastructure
upgrades that will be needed for urban, suburban and rural regions.
More consideration must be given to these complex issues before AVs can
be deployed on a large scale.
As Truck Crash Deaths Rise, Policies to Improve Safety for Truck
Drivers and All Road Users Languish
The heroic efforts of truck drivers during the COVID-19 pandemic
have benefited consumers throughout the country. Congress must make
certain that they are protected from contagion as well as from being
pushed beyond physical limitations to fulfill their job. While
Advocates appreciates and understands the necessity of a short-term
suspension of certain policies to allow for the movement of essential
goods, including medical supplies and food, these exemptions must be
narrowly tailored with appropriate safeguards to protect all road
users. Specifically, as exemptions have been sought from hours of
service, truck size and weight limits, and licensing requirements, it
is paramount that any potential negative consequences to safety are
minimized. This can be achieved by: 1) exemptions should be granted for
180 days or the duration of the national emergency declaration,
whichever is shorter; 2) exemptions must not be overly broad and
instead constructed in a way that clearly delineates goods and services
that are essential for direct pandemic response; and, 3) exemptions
cannot be used to justify future rollback or repeal of truck safety
rules. Any data generated during this time must not be used as the
basis for any permanent policy changes. With circumstances on the roads
far from normal, any data would be skewed and not indicative of
potential ramifications.
While a number of identified and persistent problems are
contributing to deaths and injuries resulting from large trucks
crashes, unfortunately many of the known solutions and safety advances
are pushed aside. Worse yet, certain segments of the industry are
relentless in their efforts to roll back, weaken and degrade essential
rules and regulations. This deadly and costly trend will only be
reversed with proactive action taken by our Nation's leaders.
Congress should require essential safety systems as standard
equipment in all new CMVs including automatic emergency braking, speed
limiting devices and advanced rear and side underride guards. All these
life-saving technologies have proven safety benefits. In addition, to
obtain a Commercial Driver's License (CDL), a candidate should be
required to undergo uniform adequate training including a minimum
number of hours of behind-the-wheel training. Moreover, all data on
carrier performance collected by FMCSA's Compliance, Safety,
Accountability (CSA) program should be made publicly available. With
fatal truck crashes continuing to occur at an alarmingly high rate
unhampered by appropriate accountability, there is insufficient
incentive for unsafe carriers to improve their operations.
While in the future, fully autonomous technology may offer the
promise of significantly reducing crashes involving CMVs, protections
and regulations are necessary to ensure it is deployed safely including
the presence of a properly-licensed human driver for the foreseeable
future. Furthermore, the advent of this technology must not be used as
a pretext to eviscerate essential safety regulations administered by
the Federal Motor Carrier Safety Administration (FMCSA). The public
safety protections provided by the Federal Motor Carrier Safety
Regulations (FMCSRs) become no less important or applicable simply
because a CMV has been equipped with an autonomous driving system
(ADS). In fact, additional substantial public safety concerns are
presented by autonomous commercial motor vehicles (ACMVs).
If the serious crashes involving passenger motor vehicles equipped
with automated systems of varying levels noted above had involved
ACMVs, the results could have been even more catastrophic and the death
and injury toll could have been much worse. Some of the most pressing
safety shortcomings associated with autonomous vehicle technology,
which include the ADS properly detecting and reacting to other road
users, driver engagement and cybersecurity, are exponentially amplified
by the greater mass and force of an ACMV. As such, it is imperative
that ACMVs be subject to comprehensive regulations. The development and
deployment of these experimental vehicles must also be subject to
robust safeguards including sufficient data collection and sharing,
performance requirements and enhanced operating authorities, at a
minimum.
Any Erosion of Current Truck Safety Protections Should be Rejected
Several policies that would jeopardize safety for truck drivers and
those with whom they share the roads have been put forth which
Advocates and others staunchly oppose. Our rejection of these
proposals, as well as our recommendations for proactive policy
proposals, are detailed in the testimony Advocates submitted to the
Committee for the February 4, 2020 hearing ``Keep on Truckin':
Stakeholder Perspectives on Trucking in America.''
Bigger trucks mean bigger problems for safety and infrastructure.
Advocates urges the Committee to oppose any effort to increase or
circumvent truck size limits including lengthening double trailer
trucks, providing state or industry-based exemptions from safety
regulations, or establishing pilot programs which often de facto turn
into permanent policy.
Driver fatigue is dangerous and deadly.
The NTSB has repeatedly cited fatigue as a major contributor to
truck crashes and included reducing fatigue related crashes in every
edition of its Most Wanted List of safety changes since 2016. A barrage
of legislative and regulatory proposals also continues to target ELDs
and HOS rules. One such proposal was recently finalized despite strong
objections from safety advocates, and various entities continue to seek
exemptions from the hours of service (HOS) rules with the U.S. DOT.\42\
---------------------------------------------------------------------------
\42\ 85 FR 33396 (Jun. 1, 2020).
---------------------------------------------------------------------------
``Teen Truckers'' pose a major safety threat.
Some segments of the trucking industry are pushing to allow
teenagers to operate CMVs in interstate commerce in order to alleviate
the alleged ``driver shortage'' despite a March 2019 U.S. Bureau of
Labor Statistics (BLS) analysis finding that ``the labor market for
truck drivers works about as well as the labor markets for other blue-
collar occupations'' and ``a deeper look [at the truck industry labor
market] does not find evidence of a secular shortage.'' \43\ Advocates
strongly opposes the ``DRIVESafe Act'' (S. 569/H.R. 1374) which would
severely jeopardize the safety of all road users by putting teenagers,
who have higher fatal crash rates, behind the wheel of large trucks in
interstate commerce.
---------------------------------------------------------------------------
\43\ United States Department of Labor, Bureau of Labor Statistics,
Is the U.S. labor market for truck drivers broken? (Mar. 2019).
---------------------------------------------------------------------------
Conclusion
As our Nation grapples with the ongoing pandemic and the
devastation and uncertainties it has created, we turn to our elected
officials to lead us on a path to recovery. This daunting
responsibility is also an opportunity to build a safer, stronger
country including our transportation network.
Developing AV technology and protecting public safety are not
incompatible goals. When this Committee moves forward with AV
legislation, we urge you to ensure that the U.S. DOT conducts thorough
oversight, issues minimum safety performance standards and requires
industry accountability before driverless cars are available in the
marketplace and sold to the public.
Similarly, this precarious time in our Nation's history should not
enable the permanent erosion of current truck safety protections.
Advocates lauds the heroisms of truck drivers during the COVID-19
pandemic and urges Congress ensure they are protected from the disease
and from being pushed beyond physical limitations to fulfill their job.
Without question, this is a transformational time in transportation
history. Again, we thank the Committee for holding this hearing and
look forward to continuing to work together to make vehicles and
roadways safer for all.
______
Prepared Statemnt of American Bus Association
Chairman Wicker, Ranking Member Cantwell, and distinguished members
of the Senate Commerce Committee, on behalf of the American Bus
Association (ABA) thank you for calling today's important hearing. We
are submitting testimony for the record on behalf of the motorcoach,
tour and travel industries.
The ABA is the oldest, largest, and most respected voice of the
motorcoach, tour and travel industries. Our Association represents
private motorcoach operators, tour operations and all facets of small
businesses supporting the travel industry. Our motorcoach members are a
vital component of the national public transportation network,
providing intercity scheduled bus service, commuter and shuttle
operations, school bus transportation, charter operations, and in some
cases contract services for public transit authorities. Collectively,
the motorcoach industry provides nearly 600 million passenger trips
annually, a statistic on par with the domestic commercial airline
industry. As well, ABA membership includes tour operators,
destinations, and other tourism-related organizations (including local
and regional government partners), along with product and service
suppliers, all in support of the travel industry. Collectively, these
industries provide nearly two million jobs and create over $236 billion
in economic impact nationwide.
However, faced with the dire situation caused by the Corona Virus
Disease 2019 (COVID19) outbreak, collectively, the motorcoach, tour and
travel industries are facing an unprecedented downturn. As your
Committee reviews the state of transportation and critical
infrastructure as a result of COVID-19, and develops further actions
necessary to counteract these impacts, the ABA implores you to ensure
the motorcoach industry is not forgotten. As Larry Willis, President of
the Transportation Trades Department, AFL-CIO noted in his written
testimony for this hearing, ``The motorcoach industry, which provides
critical intercity transportation across the country, has seen nearly
3,000 companies shut down and almost 100,000 employees laid off. We
also believe emergency supplemental funding is needed for the
motorcoach industry and its heavily impacted workforce.''
Not surprisingly, based on our membership of intercity, commuter,
and charter motorcoach operators, ABA is at the center of the COVID-19
``storm''. With the worldwide outbreak continuing to effect the global
economy, the devastating impact on travel and transportation operators
cannot be understated. The daily cancellation of trips and gatherings,
compounded by the broadly publicized reports warning workers and
travelers away from public modes of transportation, is taking a serious
toll on our collective industry. Further, as we are an industry
dominated by small, U.S. owned entrepreneurial businesses, many of
which are multigenerational family businesses, unlike larger corporate
interests, our members are not prepared to withstand such a significant
economic downturn. The current situation is far worse than the downturn
following the tragic events of September 11, 2001. At that time,
although fear of travel was a factor, particularly travel by air and to
larger urban areas, travel did continue by motorcoaches and to other
venues. Timing also was a factor. For example, springtime is the
largest travel period for the industry with most much travel being
related to student educational and recreational activities. But with
the COVID-19 outbreak, spring 2020 will likely go down as the worst
travel season on record.
We are hearing daily from our members struggling to survive. In
March, as urban centers across the country shut down, along with
schools, and travel in general, the motorcoach industry came to a
standstill, practically overnight. Travel contracts were cancelled
through the summer; offices were closed and workforces converted to
teleworking; and school, sporting events, concerts and conventions were
all cancelled. An industry comprised of 3,000 companies, with a fleet
size of 36,000 vehicles, was forced to lay-off or furlough close to
100,000 employees and idle the entire fleet. For many operators, the
spring time period provides close to 50-60 percent of their annual
revenue, with the fall time period providing the second financial boost
for the year based on school related travel. But not this year. The
pandemic has left a successful, independent industry heavily invested
in equipment and subject to costly regulatory requirements, completely
decimated.
Further, as economies begin to reopen and businesses start to
restore or resume normal operations, the motorcoach industry will lag
behind, for an extended period of time. Continuing concerns about the
virus and travel by mass transit, directives from the Center for
Disease Control calling for on-going social distancing requirements,
and restrictions and cancellation of school field trips and
extracurricular activities, coupled with increased costs for sanitizing
and ensuring the health safety of vehicles, will interfere with any
effort for the motorcoach industry to recover. At this point, the
industry outlook for recovery is, at best, about 24-months or longer.
Also, unlike its counterparts in the air, rail and public transit
arena, the motorcoach industry has not received any direct grant
assistance to support it through this pandemic crisis.
Yet, when called upon during these troubled times, there have been
several ``heroic'' services provided by motorcoach operators who have
managed to continue operations, albeit operating at only 5-15 percent
capacity. Motorcoach operators have provided essential service to bring
needed nurses and medical staff to numerous medical facilities like the
Mayo Clinic, and into New York City, at the height of the outbreak.
Last week, motorcoaches conducted an emergency evacuation of a
retirement community, moving 150 people in under an hour. In May,
motorcoaches were portside, providing service to stranded cruise line
passengers on COVID-19 infected ships when they were finally permitted
to disembark. Motorcoaches operators have continued to meet the needs
of the U.S. Department of Defenses, moving military personnel and their
equipment. Operators, such as Greyhound instituted a special program to
provide travel for responders who left their home town to help out
other towns in need of additional support during the outbreak; and
Coach USA, who offered buses for medical workers, equipment and
supplies. Now, operators are also bracing for what is expected to be a
highly active storm season, as motorcoaches are a key component of the
Nation's emergency response capabilities, to move people out of harm's
way.
We appreciate you holding this hearing to discuss the important
role of transportation and critical infrastructure during this pandemic
to the national economy, and especially want to highlight the critical
role motorcoach operations play as part of the national transportation
network. As Congress continues to seek ways to assist with the recovery
of the national economy and the return to normal operations in the wake
of the COVID-19 pandemic, we hope this Committee will engage and
develop measures to sustain the motorcoach industry through this
unprecedented economic crisis. Specifically, we need Congress to
provide dedicated funding for the motorcoach businesses and their
employees to ensure the viability of this critical aspect of the
national transportation network. Specifically, our industry needs $10
billion in grants and $5 billion in longterm, low-interest loans. The
historically successful motorcoach industry is not looking for a
permanent funding commitment, but a bridge to survive this
unprecedented economic crisis. If the industry does not receive help,
motorcoaches will no longer be available to connect rural communities
to necessary resources, take commuters to necessary jobs, provide what
may be the only means of travel for some low or fixed-income citizens,
assist when the next hurricane hits and people need evacuation, or
support the military with troop and equipment movements. Time is
critical, and ABA stands ready to assist the Committee in its role
moving forward.
______
Prepared Statement of The Transportation Alliance (TTA)
Hon. Roger Wicker,
Chairman,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Hon. Maria Cantwell,
Ranking Member,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Chairman Wicker and Ranking Member Cantwell:
Thank you for inviting The Transportation Alliance (TTA) to submit
comments to the U.S. Senate Committee on Commerce, Science, and
Transportation regarding how our industry is responding to the COVID-19
pandemic. We appreciate this opportunity.
Established in 1917, The Transportation Alliance is a nonprofit
trade association that represents private sector providers of ground
transportation for-hire. We primarily provide mobility for passengers,
but we also transport food and packages locally.
The ground transportation for-hire industry is made up of many
market segments including taxicabs, liveries (sedan services),
limousines, shuttles, school transportation, motorcoaches, paratransit
and non-emergency medical transportation (NEMT) fleets. The general
public routinely hires our services, as do corporations, social service
agencies, cities, transit authorities, school districts, nursing homes,
hospitals and many more entities. From a sedan to wheelchair accessible
vehicles, we meet a wide variety of transportation needs: young school
children, business travelers, passengers with disabilities requiring
ADA accessible paratransit, NEMT passengers receiving life-saving
chemotherapy and dialysis treatments, families traveling for vacation,
elderly citizens going to the pharmacy for prescriptions, low-income
Americans living in food desens who need to get to the grocery store,
and many more types of routine daily trips that are vital to our
Nation's ability to move people safely and efficiently.
The mobility we provide in moving approximately 2 billion
passengers each year is exceptionally valuable to the passengers we
serve. Yet it is equally vital to the medical centers, stores,
restaurants, airports, and other entities that rely on us to transport
their customers, as well to the producers of the vehicles, fuel,
insurance, communications, and technology that produce the products we
buy, and to the hundreds of thousands of workers earning a living in
this industry. We are an integral component of the American economy.
Our industry is facing very real crippling financial losses. With
the Federal government and states recommending that Americans continue
to severely restrict their movements, our industry anticipates further
immediate economic losses. The ensuing loss ofjobs will be keenly felt
over the next few weeks. There is no time to lose in saving this vital
aspect of American transportation.
The crisis threatens to shutter critical and essential public
transportation operations forever. People in communities across the
United States rely on our services for their jobs, medical needs,
getting kids to school, and other daily activities that some may take
for granted. We are asking you to work with us on specific and targeted
financial relief that will help ensure our industry is able to recover
and provide essential services to the public in the future.
Our members are reporting staggering loss projections of 85 percent
now--precipitous declines that are expected to extend well into the
months ahead. Without specific assistance from the Federal government,
many of these businesses will close forever. If that happens, the
country will lose critical transportation infrastructure: the people,
vehicles, call centers, maintenance facilities and services that keep
America moving. We must ensure this industry survives for the future.
Responses to questions submitted to The Transportation Alliance from
the U.S. Senate Committee on Commerce, Science, and
Transportation
What impacts have you seen from COVID-19 on passenger transportation
operations and how have you responded to these impacts?
Every market segment and every community is a different, but one
can say that business has generally declined between 100 percent and 60
percent, with the average being about 85 percent in June.
Companies that focused on providing non-emergency medical
transportation (NEMT) service to nursing homes virtually came to a
total standstill--no business whatsoever. Other NEMT services, such as
Medicaid-funded transportation for dialysis and chemotherapy continued,
but overall NEMT trips were scaled back by about 75-100 percent.
Nursing homes are still shut down to transportation, but in many states
routine medical visits have started to open up. There have only been
small incremental increases in transportation for patients reported so
far. In order to avoid a surge in future emergency room visits, it is
vital that patients be able to go to their routine medical appointments
as soon as it is safe to do so.
Companies that specialize in providing services under contract to
public entities (transit authorities, school districts, cities) saw
different levels of decline based on the severity of the COVID-19
outbreaks in their communities. Some shut down entirely while others
saw a 65 percent or more drop in business. Some school districts and
transit authorities have helped their contractors with partial payments
so the contractor can keep their personnel and equipment in place for
when services ramp back up. There has been no significant increase in
this business reported yet.
Taxicab and livery companies, like all other transportation
providers, saw business drop over a cliff in March. Business typically
fell 60 percent to 95 percent, depending on community. Many of these
companies are diversified and also provide services under contract to
public entities. Given their smaller vehicles (sedans and minivans)
that provided safer individual transportation, they picked up new or
expanded work transporting medical personnel and patients. In states
that are starting to reopen, we are receiving reports that some taxi
and livery companies are experiencing up to a 20 percent increase in
ridership compared to the prior 30 days.
Luxury transportation (executive sedans and limousines) and
motorcoach fleets have been hard hit by the pandemic. Reductions in
service of 80 percent to 100 percent are common. So far, only minimal
increases in service demand have been reported, even in states that
have begun to reopen.
What are your expectations for continued impacts on the passenger
transportation system in the near future and its response to a
reopening of the economy? What impacts do you anticipate for
the passenger transportation system in the long term?
First, the entire for-hire ground fransportation industry will take
more than a year to recover, and even that timeline assumes states
fully reopen soon and are able to stay open. Until people become mobile
again--from business travel to tourism to schools reopening to leisure
activities on weekends--the demand for passenger transportation will
remain depressed. It could be many years before America's
transportation sector regains its full strength in terms of staffing,
vehicles in service, and ridership levels.
For NEMT providers, we believe service usage needs to increase to
avoid a new and costly medical crisis with overrun emergency rooms. One
cannot avoid medical treatments over a prolonged period without
experiencing a surge in deaths and emergency room visits. In the longer
term, it is possible that some medical treatments may become more home-
based. As such, NEMT services will evolve to also transport equipment
and/or personnel to facilitate this modified medical service delivery
structure.
Contract services are likely to expand as states reopen. We believe
the expansion will be very slow and may take many years to return to
pre-pandemic levels. With the Centers for Disease Control (CDC)
recommending the public avoid using public transit's larger vehicles,
more use of smaller, safer vehicles providing community-based
microtransit will continue to expand. In the long term, public transit
should fully recover, because even if there is a major conversion from
office-based work to telecommuting it is hard to imagine our
infrastnlcture being able to support the huge expansion Of single
driver cars it would take if public transit doesn't recover in urban
centers.
Taxicabs and liveries are poised for a stronger recovery if states
can fully reopen and stay open. Much of this segment of our industry
has diversified and, in addition to their traditional service, are also
providing NEMT service as well as contract services to transit
authorities, schools, medical centers, corporations and more. This wide
array ofrevenue sources has enabled the industry to shift its service
delivery to where it is most needed during the pandemic. This has
included setting up special transportation services for infected
persons, providing mobility for medical personnel to and from medical
centers, and expanding services to include delivery of groceries,
medicine, and food takeout orders from restaurants.
Luxury transportation and motorcoach services are likely to
experience a slow recovery but here again, if states can fully reopen
soon and stay open, then these services will rebuild their ridership.
This market segment has numerous contracts in the private sector and
has been successfully expanding into public sector contracts. Still,
until businesses and consumers start to travel in large numbers again,
progress will be slow.
How have critical infrastructure employees been affected during the
COVID-19 crisis while performing their duties, and what steps
have been taken to protect them?
First, we need to report that most of our personnel are not
currently working. They have been furloughed, laid off, unable to work
because they don't have needed child care services, or feel they are at
risk and choose not to work. This includes most of our drivers, and a
large portion of our mechanics, call center, marketing and management
staff.
For those who are working, much has changed very quickly to keep
them safe. It begins with educating workers on the need for social
distancing, the frequent washing of hands, the need to stay home if
feeling ill and the need to repeatedly clean their workspaces.
Operational changes have also been made. In many of our industry's
sedans and vans, plastic partitions have been installed between the
driver in front and the passenger(s) in the back. Typically, the
companies are providing masks, gloves, hand sanitizer and disinfected
filled spray bottles and cleaning cloth for all drivers. Every vehicle
is to be cleaned after every passenger departs the vehicle, and every
vehicle is to be fogged at least once a day with a hospital-grade
disinfectant. For those working in the office, the premises are
cleaned/disinfected multiple times a day. Also, the workstations have
been spread out as much as possible for social distancing, and where
possible some workers are now able to work from home.
For those companies transporting COVID-19 infected persons, all of
the above precautions are taken and, in addition, after every passenger
is transported the vehicle is fogged. The drivers who volunteer to
provide this service are well aware of the need to be vigilant at all
times with the passenger and everything they may touch.
What steps has your organization or have your members taken to protect
the safety of the traveling public?
The cleaning/disinfecting protocols implemented for drivers and
vehicles go a long way to also protecting our passengers. In addition,
we request that passengers also wear a mask, and when possible use
contactless payments.
Our organization reached out to the U.S. Department of Health and
Human Services asking for help in accessing personal protection
equipment (PPE), as it has been difficult to access this protective
gear, particularly at the beginning of the pandemic. Now the U.S.
Department of Transportation (DOT) has made PPE available to public
transit workers. We have reached out to DOT seeking its help in
expanding the program to include private sector transportation workers.
This is an area where Congress can help. The DOT has created a
program that is providing PPE's to some in the transportation industry.
Currently, taxis and other private sector providers of public
transportation are not included. We would like to ask Congress to
request that DOT include our industry into this program. We are
providing a critical service during this pandemic and our operators
require this same PPE and a pipeline for these products in order to
ensure safety.
What additional guidance or support would be useful from the U.S.
Department of Transportation, other Federal agencies, and from
Congress as you move forward during the COVID-19 public health
crisis?
Here is a brief summary of the legislative and regulatory issues
The Transportation Alliance is currently addressing in response to the
COVID-19 pandemic:
(1) We were told early on not to expect industry grants. With that
in mind, TTA drafted its own plan called the Small Business
Jump-start America Act, a commonsense economic plan that has
been received well by congressional leaders, the White House,
numerous industries, and even some in the banking community.
This Act would provide certain key small business that are
vital to reopening America with the access to capital they need
without leveraging their businesses or their future. The Small
Business Jump-start America Act is now supported by over
310,000 small businesses representing over 8 million jobs in 41
states. (More information on this proposal is attached.)
(2) Providing temporary and targeted liability relief legislation
related to the COVID-19 pandemic. These crucial protections
should safeguard businesses, nonprofit organizations and
educational institutions, as well as healthcare providers and
facilities from unfair lawsuits so that they can continue to
contribute to a safe and effective recovery from this pandemic.
(3) Our industry has been on the front lines supporting hospital
personnel by taking them to and from work at all hours of the
day. Our industry continues to take some of the most vulnerable
populations to and from critical medical appointments. Our
operators have stepped up and now deliver life-saving
medications and meals to those sheltered in place. We would
like to ask that during national emergencies or pandemics like
COVID19 that a new category be created for National Responders,
which would then allow them to be eligible for hazard pay.
(4) TTA is currently working with HHS on a solution to help provide
TTA members with a pipeline to personal protection equipment
(PPE) going forward. We have also recently reached out to the
U.S. Department of Transportation (DOT) on this matter. This is
critical. This is another area in which we need immediate help.
We need DOT and other agencies to help us create a pipeline for
these products. CDC has come out with strict rules, which we
support, but without access to the needed PPE we will continue
to see more businesses close, leaving passengers without safe
transportation.
(5) The U.S. House of Representatives passed the HEROES Act, which
included a provision that codified our association's suggested
language on non-emergency medical transportation (NEMT). This
is an important step in barring the U.S. Department of Health
and Human Services (HHS) from implementing rules that would
allow states to opt-out of providing NEMT services. This
provision is critical to ensuring those who need our help the
most have access to transportation. The NEMT program saves the
government money and we would urge the Committee to include the
House bi-partisan language in the next stimulus bill.
(6) TTA has reached out to the U.S. Department of Education asking
it to issue guidance on Section 18006 of the CARES Act
regarding the requirement that, ``A local educational agency,
State, institution of higher education, or other entity that
receives funds under 'Education Stabilization Fund', shall to
the greatest extent practicable, continue to pay its employees
and contractors during the period of any disruptions or
closures related to coronavirus.'' Many of our members have
received support through this program while other school
districts have disregarded this provision of the CARES Act.
Schools have been given money to help support their needs
during this pandemic. That money should be used as Congress
intended. To do this, we must define the phrase ``to the
greatest extent practicable. '' We are seeing school systems
cancel contracts with our members under this vague wording.
That was not the intent of Congress and we would like to work
with you and Secretary DeVos on strengthening this language so
that schools have the same obligations as other businesses to
keep as many people as possible working during this pandemic.
(7) We were very pleased that, within a matter of days of our
request in March, the U.S. Department of Homeland Security
included our industry as essential services, a key designation
to keep transportation companies on the road in the face of
widespread, mandatory business closures across the country.
(8) Numerous TTA members have qualified for Paycheck Protection
Program (PPP) loans, an effort that involved daily, and
sometimes hourly, updates to our membership. We also recently
worked with key House and Senate leaders on modifications to
the PPP loan program, which extends the period in which
companies need to use the loans to 24 weeks. We also pushed
hard to successfully change the rules in how companies can use
those funds: Under new legislation, companies can now spend up
to 40 percent of PPP loans on utilities.
(9) We have been working with Congress and the insurance industry
on a solution to the problem that vehicles that are no longer
in service cannot return their tags in 11 states where the
state Department of Motor Vehicles is closed. The inability to
return to tags has meant that some companies have been unable
to take their vehicles off their insurance. We still need help
getting final resolution on this issue. We are essentially
having to pay premiums for vehicles no longer in service.
Several states have required insurance companies to refund
premiums to drivers, but those don't cover our vehicles, We
believe they should.
(10) Modifying Section 3719 of the CARES Act to allow NEMT operators
to receive advance payments from Medicare and/or Medicaid.
(11) Requiring all government accounts with ground transportation
companies to be paid within five days of billing.
(12) Requiring the General Services Administration to offer
government surplus vehicles at cost to passenger ground
transportation companies serving economically disadvantaged
communities.
Please describe any ways that you or your members have been
affected by the CARES Act and how it has affected your employees,
operations, or other aspects of your business.
We should note that the Payroll Protection Program (PPP) has been
very valuable to our industry, particularly after the time allowed for
its utilization was extended to 24 weeks. While the program is not
perfect, it was put in place and the funds started to flow remarkably
quickly. Our industry is grateful for the help that was extended. We
hope that more help is forthcoming with similar speed.
The program that has been counterproductive to getting our labor
force to come back to work is the Federal Pandemic Unemployment
Assistance program that provides unemployed workers an additional $600
per week in unemployment benefits. While we fully understand and
appreciate the reason for these benefits, one of the unintended
consequences is that it is now serving to slow down our industry's
recovery.
In closing, we thank you for reaching out to The Transportation
Alliance and seeking our input as the Senate Committee on Commerce,
Science, and Transportation evaluates how to best move forward in
responding to the COVID-19 pandemic. We hope our responses are helpful.
Should you have any questions moving forward, please contact us. We
stand ready to assist you in this vital effort as we all work together
to get America moving again.
TTA's office is located in Rockville, Maryland (a close-in suburb
to Washington, DC.) and is still required to be closed. The best way to
reach us is by e-mail to our CEO Alfred LaGasse at
alagasse@TheTran$portatiQnAlliance.org. TTA staff is working at full
capacity, albeit from their homes, and will respond to your outreach or
questions without delay.
Sincerely,
Thomas P. Arrighi,
President,
The Transportation Alliance.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
______
Prepared Statement of David H. Fialkov, Vice President, Government
Affairs, Legislative and Regulatory Counsel, National Association of
Truckstop Operators (NATSO)
703-739-8501 [email protected] The National Association of
Truckstop Operators (NATSO), representing America's travel centers,
truckstops, and off-highway fuel retailers, respectfully submits this
statement for inclusion into the record for the hearing entitled, ``The
State of Transportation and Critical Infrastructure: Examining the
Impact of the COVID-19 Pandemic.'' NATSO's members, comprised thousands
of travel centers and retail fuel locations located throughout the
United States, are essential to the U.S. supply chain. Their critical
role has been underscored in recent months as they have responded to
the COVID-19 pandemic. America's truck drivers have heroically stepped
up in recent months to ensure that supermarket shelves are stocked,
hospitals have adequate supplies, and a country on lockdown can
continue functioning as safely and efficiently as possible. These truck
drivers rely on travel centers to eat, rest, shower, and refuel while
out on the road.
Below is a brief overview of the impact that the pandemic has had
on travel centers' capacity to provide these essential services. This
discussion includes various policy recommendations that the Committee
and Congress should consider to better enable this critical industry to
serve our Nation's travelers and truck drivers as we head into the
summer and the remainder of a tumultuous year.
Travel Centers are Essential Businesses
It is impossible to overstate the importance of early declarations
clarifying which industries are ``essential'' to the country and
therefore legally permitted to continue operating as various
jurisdictions imposed stay-at-home orders in the early days of the
pandemic. Such declarations provide clarity to businesses so they can
instead focus on taking care of their employees and customers. In this
respect, it is similarly impossible to overstate the assistance that
the Federal Motor Carrier Safety Administration (FMCSA), and Acting
Administrator Jim Mullen in particular, provided to travel centers and
their customers (and thus every American). FMCSA provided early
assurances to travel centers that they were permitted--indeed
encouraged--to remain open to enable trucks to remain on the road, and
proactively took steps to temporarily waive hours of service
requirements that enabled trucks to promptly deliver essential
supplies.
As the ``essential critical infrastructure'' industry moniker
suggests, it is essential that travel centers be permitted to remain
open throughout any extraordinary measures that are taken to protect
public health. For many travel centers, simply staying open has become
a challenge in recent months, as the COVID-19 pandemic has taken a toll
on travel, freight movement, and economic activity that travel centers
rely on to survive.
Patchwork of State and Local Health Regulations
During the initial weeks of the pandemic, NATSO members had to
confront was inconsistent rules and safety precautions that different
states and local health officials required travel centers to implement.
This patchwork of regulations made it impossible for companies that
have multiple locations to centralize best practices and compliance
measures. Although many localities were flexible and accommodating to
travel centers, others imposed seemingly drastic obligations that
insufficiently balanced safety precautions with the need for truck
drivers to promptly eat, refuel, refresh, and get back out on the road.
For example, some localities required all ``convenience stores'' to
limit total occupancy to five people, including employees. While this
may make sense for small, urban bodegas, travel centers are
substantially larger than standard convenience stores. Strict
imposition of unreasonably small occupancy limits resulted in
exceedingly long wait times for customers to enter the store, shower,
purchase a meal, and get back on the road. Jurisdictions that imposed
more flexible occupancy limits (e.g., tying limits to a percentage of a
building's fire capacity) enabled far more efficient, and equally safe,
operations.
There are already several localities throughout the country that
had begun reopening their economies but were forced to reverse course
because of an uptick in COVID-19 cases. Although it is unclear how
prevalent such scenarios will be, NATSO strongly urges policymakers to
ensure that all safety measures do not unnecessarily delay truck
drivers' ability to eat and refuel and get back out on the road.
Foodservice in Travel Centers
For America's truck drivers, the opportunity to sit down at a
restaurant and unwind after a long day on the road is a critical aspect
of day-to-day life. Virtually every travel center therefore has at
least one restaurant option; most have several options, often including
a sit-down dining restaurant. Not only do restaurants offer a hot meal,
but time spent there also allows drivers to take time outside the
truck, which serves as their home while on the road, to socialize with
travel center staff and fellow diners and take respite from the often-
grueling life of delivering essential supplies.
When it became clear that sit-down dining options were incompatible
with safety precautions, it was a blow to morale for professional
drivers. Drivers not only lost opportunities for hot meals outside the
quick-serve or grab-and-go context, but also had to sacrifice what was
once a highlight of the day--sitting down at a restaurant to eat.
Travel center operators--who have devoted their life to serving truck
drivers--were heartbroken to inform their customers that the dining
room was closed.
What's more, like the restaurant industry at large, travel centers'
foodservice operations took a substantial hit to their revenue.
Operators had to pivot to new forms of foodservice: most offered
curbside or take-out options; others engaged with delivery apps such as
Grubhub or UberEats; many operators converted their restaurant kitchens
to commissaries for the attached convenience store, offering grab-and-
go options that were made in the kitchen.
Despite these efforts, it has been a struggle for travel centers'
restaurants to remain afloat. Some operators have closed their
restaurants entirely and had to temporarily furlough their employees-
many of whom have worked at a location for decades. The Paycheck
Protection Program (PPP), which as a general matter has helped many
NATSO members continue operating the past several months, was drafted
in such a way that precluded restaurants that are located within larger
travel centers from accessing forgivable loans unless those restaurants
are set up as separate companies from the underlying travel center
business. Some NATSO members structure their businesses this way and
were able to access the loans and remain open; others are not
structured this way and thus did not have access to the PPP program.
In early April, the Federal Highway Administration (FHWA) announced
that it would temporarily not enforce the Federal ban on commercial
activities at Interstate rest areas by allowing food trucks to operate
and sell food at interstate rest areas. Although NATSO is a staunch
supporter of the rest area commercialization ban, NATSO did not oppose
this measure if it resulted in enabling truck drivers to access hot
meals in geographic areas where there was otherwise no other options
available. It should be noted, however, that this non-enforcement order
occurred at a time when off-highway restaurants--including those
located at travel centers--were struggling to remain afloat. Allowing
nearby rest areas to begin selling food hurt off-highway restaurants'
sales and made it more challenging for them to continue operating and
serving drivers. NATSO, along with ten other associations representing
off-highway communities, restaurants and other businesses, and blind
merchants have all urged FHWA to commit to not further expanding this
nonenforcement guidance beyond food trucks during this epidemic, and
once the current state of emergency ends, to immediately revert back to
enforcing the long-standing ban on commercializing Interstate rest
areas. (See Appendix A.)
Employee Retention and Hiring
Travel Center employees are some of the unsung heroes of America's
response to the COVID-19 pandemic. Whiles these hard-working Americans
may not be well-known, the work they are doing each day to protect our
supply chain is helping the country persevere through this challenging
crisis.
Many NATSO members raised employee wages by $1.50-$4.00 per hour
during the pandemic. One of the unintended consequences of the
Coronavirus Aid, Relief, and Economic Security (CARES)Act's $600 per
week increase in unemployment benefits, however, is that it has become
difficult for many essential businesses--including travel centers--to
retain and rehire employees. NATSO urges Congress to make it easier for
these businesses to recognize and reward front line workers who
continue working during the pandemic. This could come in the form of
tax relief for workers or employers, or direct government payments to
employees. Senators Ernst, Romney, Portman, and Minority Leader Chuck
Schumer have all developed creative mechanisms that would help achieve
this goal. In addition, expanding the Workforce Retention Tax Credit
could play a critical role to enable employers to increase employee
pay. NATSO hopes Congress can coalesce around one--or a combination--of
these ideas to enable businesses to continue operating without
compromising the need to take care of those who cannot find work.
Travel Centers Need Reasonable Liability Protection
NATSO's members, and all essential businesses, that have taken
necessary precautions to protect their employees and customers while
serving the country during this crisis should be protected from COVID-
related litigation expenses. They have confronted some of the most
challenging business conditions in the Nation's history, and have
stayed open--at the urging of the Federal government--to serve their
customers. They have implemented unprecedented virus mitigation
protocols such as enhanced cleaning and sanitation practices and social
distancing measures to protect their employees, customers and others
from exposure. Additionally, they are working to comply with often
vague, constantly evolving local, state, and Federal guidance for
workplace safety. Many companies have faced difficulties acquiring the
cleaning supplies and personal protective equipment they need to
protect their operations in the way they would like. That uncertainty
combined with compliance challenges will leave room for efforts by some
to take advantage of the current crisis to lawsuits against the
businesses that, by necessity, kept operating.
To be clear, NATSO does not seek protection for bad actors.
Employers who willfully ignore the risks of the spread of COVID-19 or
commit gross negligence by not adhering to the recommended health and
safety guidance should be subject to litigation. This is an important
distinction to make; NATSO is not looking for blanket coverage that
would allow bad actors to operate without making efforts to provide
worker and customer safety. NATSO simply seeks protection for those
businesses who are doing what they can to protect against exposure to
the virus.
Nor is NATSO seeking to change American tort law on a permanent
basis. The COVID-19 pandemic is a unique event and merits its own
response that is tied to the needs of the moment. With that in mind,
NATSO favors limiting liability protections to this virus and the time
during which it is a threat. This is not a time to hash out
longstanding questions about the American legal system that are not
related to the current crisis.
Travel Centers Need Access to PPE, Testing, and Vaccines
As noted above, travel centers went through several weeks at the
outset of this pandemic when some were unable to acquire the requisite
cleaning materials, facial coverings, and other equipment necessary to
combat coronavirus. This resulted in substantial disruptions not only
to their operations, but to freight movement and macro-economic
efficiency. It the weeks and months ahead, governmental entities will
inevitably need to assess how to allocated finite resources--such as
testing and, ultimately, vaccines--to match seemingly infinite demand.
NATSO urges Congress to ensure that travel center employees are
appropriately prioritized in this process, so that travel centers can
remain open and fully staffed to continue playing the essential role in
America's supply chain. If our businesses can not remain open safely,
we cannot help to keep good moving across the country.
Infrastructure Investment is Needed
The Federal government has developed a number of extraordinary
measures--including the PPP program, enhanced unemployment benefits,
and measures taken by the Federal Reserve--that will help America
survive the current pandemic in the short-term. But now represents a
unique opportunity to stimulate job creation and economic activity
while also making a down-payment on America's future standing in the
world through infrastructure investment.
The diminution in travel has also driven down fuel tax collection.
This problem is compounded by states losing retail sales tax revenue
which often directly supports transportation budgets. NATSO supports
both a short-term infusion of revenue that will allow states to
maintain capital investment schedules, and also prompt reauthorization
of the Fixing America's Surface Transportation (FAST) Act to ensure
America's transportation system has sufficient long-term revenue and
planning capacity. America's Transportation Infrastructure Act, which
unanimously passed out of the Senate Environment and Public Works
Committee last summer, offers a promising policy framework for bringing
America's infrastructure system into the 21st Century. NATSO implores
members of the Senate and House to work with one another to reauthorize
the FAST ACT this Congress and not delay until 2021.
In so doing, NATSO urges lawmakers to aspire to funding these
policies in a manner that is consistent with the following principles:
Simple--It should be efficient and inexpensive to collect
highway funds.
Difficult to Evade - It should be difficult for taxpayers to
evade paying the tax/fee for infrastructure investment.
User-Based--The primary stream of funding for infrastructure
projects should be userbased.
Energy-Source Neutral--All energy sources must be subject to
the same fee on a gallon/energy equivalent basis.
Transparent--Users must be able to understand the amount
they are being charged.
Dedicated to Infrastructure--Funds raised in the name of
improving surface transportation infrastructure should be
dedicated to surface transportation infrastructure for the
benefit of the payer. Reallocating such funds for other
purposes should be prohibited.
Long-Term--The revenue generated by the funding solution
should not significantly diminish over time. As a means of
guarding against future shortfalls, the funding solution should
contain automatic adjustments to mitigate trends that decrease
the revenue it generates, such as fuel efficiency.
At the same time, NATSO strongly opposes counter-productive
``shortcuts'' to real infrastructure investment, namely tolling
existing interstates and commercializing Interstate rest areas. These
``funding mechanisms'' are inefficient, disrupt travel and freight
movement, and undercut offhighway businesses and communities.
Conclusion
The travel center industry has been at the forefront of coronavirus
response efforts, and is prepared to continue playing this critical
role. NATSO is grateful for your consideration of this statement, and
is happy to discuss any of these issues with you at any time.
______
______
Prepared Statement of American Society of Civil Engineers
Introduction
The American Society of Civil Engineers (ASCE)\1\ appreciates the
opportunity to submit a statement on the importance of long-term,
strategic investment in our Nation's infrastructure systems. ASCE is
eager to continue to work with the Committee in 2020 and beyond to find
ways to further improve our Nation's vital surface transportation
infrastructure systems and to address the economic impacts felt during
the COVID-19 pandemic.
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\1\ ASCE was founded in 1852 and is the country's oldest national
civil engineering organization. It represents more than 150,000 civil
engineers individually in private practice, government, industry, and
academia who are dedicated to the advancement of the science and
profession of civil engineering. ASCE is a non-profit educational and
professional society organized under Part 1.501(c) (3) of the Internal
Revenue Code. www.asce.org,
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As the pandemic continues to have sweeping economic consequences
across all sectors in the United States, many American families and
businesses are looking to Congress to provide both short-term relief
and long-term economic recovery. While recent Congressional action has
addressed some of the immediate economic impacts of the pandemic, many
economists believe additional action is needed to ensure the health of
the American economy. As Congress develops additional legislation, ASCE
urges policymakers to prioritize our Nation's infrastructure and get
people back to work, using the economic slowdown to make strategic and
sorely-needed investments to strengthen the networks that are the
foundation of our economy.
Presently, many of our infrastructure assets have reached the end
of their design life. Coupled with long underinvestment and inadequate
support, a large and growing investment gap of $1.1 trillion over the
next ten years has emerged. This gap must be closed if we hope to both
repair and modernize our surface transportation infrastructure systems
to be competitive in the 21st century.
ASCE's 2017 Infrastructure Report Card
Infrastructure is the foundation that connects the Nation's
businesses, communities, and people, serves as the backbone to the U.S.
economy, and is vital to the Nation's public health and welfare. Every
four years, ASCE publishes the Infrastructure Report Card, which grades
16 major infrastructure categories using a simple ``A'' to ``F'' school
report card format. ASCE released its 2017 Infrastructure Report Card
\1\, giving the Nation's overall infrastructure a grade of ``D+,'' with
an investment gap of $2 trillion over the next 10 years--and the total
investment needed is nearly $4.6 trillion.
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\1\ https://www.infrastructurereportcard.org/
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As our infrastructure continues to age, and investments do not keep
pace with needs, the gap between identified investments and the public
commitments to meet those needs widens every year. Failing to close
that gap risks rising costs, falling business productivity, plummeting
GDP, lost jobs, and ultimately, reduced disposable income for every
American family to the tune of $9. For these reasons alone, now is the
time to invest in our Nation's infrastructure. Compounded by the
current crisis, infrastructure investments can provide both an
immediate and long-term boost to the struggling American economy, and
ensure we remain globally competitive in trade and commerce.
Solutions
ASCE recommends the inclusion of key investments to maintain and
modernize our Nation's infrastructure, create jobs, support economic
growth, and increase the resilience of our systems. ASCE therefore
urges Congress to include the following in any further legislation to
boost the Nation's economy:
Reauthorize surface transportation programs and increase funding to
address our project backlogs: ASCE urges Congress to include a multi-
year surface transportation reauthorization that addresses the long-
term solvency of the Highway Trust Fund and modernizes our roads,
bridges, rail, and transit systems. While one-time infusions into our
Nation's surface transportation program have had varying degrees of
success, investment in a multi-year surface transportation program is a
guaranteed way to provide both short-term and long-term economic
benefits. We applaud the Committee on Environment and Public Works in
introducing and passing S. 2302, America's Transportation
Infrastructure Act (ATIA) of 2019. This legislation addresses the needs
of our everchanging highway system, and we continue to urge the
committees of jurisdiction in both chambers to introduce legislation to
ensure we have a comprehensive package that addresses all the
challenges in our surface transportation network.
Support relief for state departments of transportation (DOT): While
the current surface transportation investment gap remains, under the
current crisis state DOTs are unable to generate the revenue needed to
prevent major disruptions in their ability to operate and maintain
their transportation systems. Under this pandemic, individual state
revenues are estimated to be impacted by 45 percent in the next 18
months. This is a result of expected decline of 50 percent for state
motor fuel taxes, a 67 percent decline in toll road traffic, and a 77
percent decline in ferry traffic. Because of this sharp decline, state
DOT's ability to provide a match for Federal funds will be constrained
and further impact available Federal financing opportunities. Congress
must provide the necessary $49.95 billion in backstop relief to our
state DOTs to ensure capital construction and operation programs
continue in a timely fashion, preserving safety and mobility across our
Nation's transportation systems.
Unlock vital infrastructure financing tools: State and local
governments rely on access to the capital market and issuance of tax-
exempt municipal bonds to provide for the Nation's infrastructure. ASCE
supports the tax-exempt status of municipal bonds and reinstating
advance refunding as financing tools in any infrastructure investment
legislation. Additionally, ASCE supports increasing the cap from $15
billion to $20 billion on tax-exempt private activity bonds, which
allow state and local governments to issue tax-exempt debt, with
approval from the U.S. DOT, for qualified highway or surface freight
transfer facilities. These financing tools must be easily accessible in
both rural and urban communities, and we support legislation that helps
communities better utilize and leverage existing funding and financing
opportunities.
Eliminate or increase the cap on the Passenger Facility Charge
(PFC): The associated infrastructure of U.S. airports and air traffic
control systems is not keeping up with the more than two million
passengers they traditionally serve each day. Because of an outdated,
federally mandated cap on how much airports can charge passengers for
facility expansion and renovation, airports struggle to keep up with
investment needs, creating a $42 billion 10-year funding gap. Raising
or eliminating the cap on the PFC will allow airports a much-needed
revenue boost and the ability for long-term planning and modernizing of
our aviation system.
Build resilience into infrastructure: In addition to anticipating
what hazards and conditions roads, bridges, drinking water pipes,
wastewater treatment plants, airports, and energy lines must withstand,
engineers are also thinking through how technology, population shifts,
and other trends will change communities' needs. In summary, an
integrated systems approach is needed to tackle resilience. The
National Institute of Building Science (NIBS) has found that every $1
spent through government-funded mitigation grants saves the county $6
in future disaster-related and recovery costs. Incentivizing lifecycle
costs and long-term maintenance also returns dividends; NIBS also
reports that every $1 spent on upfront construction costs and long-term
maintenance to bring buildings up to contemporary codes and standards
returns $11 to building owners in the event of a disaster. Making
targeted investments in the right manner, using the best available data
and industry standards, innovative materials and technologies, and
considering lifecycle costs will create benefits for years to come.
Conclusion
Across the nation, our future recovery depends on reliable, modern
infrastructure to provide a good quality of life for Americans and to
support economic growth. There is a unique opportunity during these
challenging times, while traffic is minimal and people stay home, to
maintain and modernize these critical assets and jump-start job growth.
ASCE looks forward to working with the Committee to address the
infrastructure challenges facing our Nation during the pandemic and we
look forward to working together to help stimulate our economy and
ensure public health and safety.
______
Prepared Statemnt of Chuck Baker, President, American Short Line and
Regional Railroad Association (ASLRRA)
Introduction
On behalf of the American Short Line and Regional Railroad
Association (ASLRRA), the national trade association representing the
Nation's 603 Class II and Class III railroads (referred to collectively
as ``short lines'') and hundreds of railroad industry suppliers, I want
to thank the Senate Committee on Commerce, Science, and Transportation
for holding this important hearing to examine the impacts of the COVID-
19 pandemic on transportation and critical infrastructure. We
appreciate the opportunity to submit testimony for the record to
provide insight into the short line railroad industry during the global
pandemic.
Together, short line railroads operate nearly 50,000 miles of
track, or approximately 30 percent of the national railroad network and
employ more than 17,000 hard-working Americans. We operate in 49
states, and in 36 of those states we operate at least one quarter of
the state's total rail network. In certain states, short lines operate
100 percent of the state's rail network. As part of the Nation's
critical infrastructure, short lines have continued to operate during
the pandemic, moving goods and materials safely and efficiently
throughout the country, while also working to protect the health and
safety of their employees and communities.
This testimony will delve into how our industry has responded to
and been impacted by the pandemic, as well as recommend ways to ensure
the freight transportation network continues to be resilient and
flexible in reacting to future unforeseen events.
Supply Chains and Operations
Operations & Keeping the Supply Chain Moving
Short line railroads are operating quite well and for the most part
have continued without significant interruption. We are proud of our
member railroads who are playing a key role in moving goods that keep
our country functioning during these uncertain and troubling times--
these railroads are working day-by-day, even hour-by-hour, with their
thousands of industrial, agricultural, energy, and manufacturing
customers to keep the Nation's supply chain functioning, in what is one
of the few bright spots for the country over the past two months. That
is not to say that there haven't been plenty of challenges, but due to
their close customer relationships, flexibility, and can-do spirit,
short lines have been able to adapt to and accommodate a cavalcade of
unusual last minute changes to shipment sizes, shipment destinations,
staffing adjustments, operating hour tweaks, business process shifts,
etc.
We have collected stories and pictures from our members operating
and transporting critical products during the pandemic, including wheat
to a flour mill, corn, and materials that are used in restaurant take-
out containers, protective masks, and hand sanitizer. You can find some
of those stories here and here.
Our railroad and contractor and supplier members have also
continued work on projects that improve our Nation's critical
infrastructure and keep hard working Americans employed. For example,
the Georgia & Florida Railway (GFRR) has continued safely working on an
81-mile track rehabilitation project that received funding from an FY17
USDOT FASTLANE grant. The project is slated for completion this year
and has not been interrupted by the global pandemic. GFRR is
prioritizing worker safety and has worked with its contractor,
RailWorks, to implement an active COVID-19 response plan. The railroad
and contractor agreed early that any test results during the COVID-19
pandemic are shared between the railroad and contractor to ensure safe
situational awareness.
COVID preparedness on the project worksites include: social
distancing; working outdoors; reminders of hygiene and hydration;
reminders of proper diet and knowing limitations; discussions regularly
of being our brothers' keeper; identifying fatigue, discussion of
proper rest cycles and healthy sleep; promotion of positive leadership
and keeping calm; cleaning supplies in vehicles and made available to
employees (wipes, various cleaners, etc.); discussions about smoking
and personal health off-property; knowledge of medical facilities
discussed in job briefings and information is included in the
timetable; looking out for a distracted public; reducing and
eliminating unnecessary distractions from employees, and promoting
focus through calm and pragmatic actions and reactions; clear
communications; first aid kits in all vehicles and machines; no
handshaking; and multiple daily discussions with RailWorks management
in field and central office.
Short Line Supply Chain
Some of our members have reported trouble acquiring desired amounts
of personal protective equipment (PPE)--this is obviously not unique to
railroad workers and is a challenge throughout the country, and our
railroads are focused on getting everything they need for our workers,
but nevertheless it's a challenge and as an industry we would be
grateful for any and all Federal help in this regard.
In addition to PPE, there have been occasional challenges with our
usual vendors getting spare parts, contract services, and other items
needed to run the railroads in a timely manner. These are generally
sporadic concerns, and we recognize this is a difficult time for
everyone and are working through that to the best of our ability.
Business levels
Overall freight railroad business is currently down about 25-30
percent year-over-year across the industry. That's not good--it's not
the devastation felt by our friends in industries such as passenger
travel, restaurants, and live events, but it's the worst that business
conditions have been since we started to keep data as an industry, and
it's likely the worst since the Great Depression.
When taking a closer look at the overall freight downturn, there is
significant variability among commodities. Grain, food products,
chemicals, and pulp and paper products have remained fairly consistent,
while we have seen greater reductions in commodities like coal,
ethanol, crude oil, auto parts, and intermodal traffic. This
variability is reflected in the short lines with some staring at losses
of 60 to 70 percent and others near flat. The sudden elimination or
steep reduction in business from just two or three customers can have a
big impact on these small business railroads, many of whom only operate
one line of track and are very dependent on a handful of customers.
Expected Short-and Long-term Impacts
On the balance, in the short-term we expect to continue operating
well and our members are eagerly working with their customers to help
move as much of their products by rail as possible. Again, we take
tremendous pride in our ability to continue serving customers well and
to keep the Nation's supply chain functioning.
However, railroading is a demand-driven business, so when customers
do not have end users demanding their products, our traffic suffers in
direct correlation. Even in the short-term, decreased demand for
certain commodities could put significant strain on some individual
short line railroads. In the near term we also expect to continue
seeing some minor disruptions to our supply chain. Our medium and long-
term outlook depends on how quickly the economy recovers and broad
demand for the products we move returns. A prolonged downturn would be
expected to have a more severe impact on the smaller short lines in the
industry and on the independent short lines. Lastly, the economic
uncertainty faced by our members, their customers, and state and local
governments, combine to cloud the visibility needed to commit to long-
term investment back into infrastructure.
Keeping Workers Safe and on the Job
Our short line railroad members are following CDC, OSHA, and DHS/
CISA guidance, and are doing everything possible to keep railroading
safely. Safety has long been the number one priority in railroading,
and that is even truer during this pandemic.
For most of the railroaders who do not need to be physically on-
site, in the field or on a train, there has been a big increase in work
from home flexibility.
As an industry, we have seen in the low triple digits for total
number of positive coronavirus cases, which is certainly more than we
would like, but is significantly below the observed rate across the
entire U.S. population. We are aggressively tracking cases across our
railroads, communicating with employees about safe practices, and doing
everything possible to make sure that those potentially exposed to the
coronavirus are safely at home in self-quarantine.
The good news is freight railroading naturally lends itself well to
physical distancing and does not require excessive person-to-person
physical contact, so on-site railroad employees are largely able to do
their jobs while maintaining safe distancing. This has been aided by
the emergency waiver process at the FRA, discussed below.
In one extreme case, an entire railroad in Colorado suspended
operations temporarily, while all its employees self-quarantined
following two of them testing positive for COVID-19, however this is
more the exception than the rule. Steps our railroads have reported
taking to protect workers include securing PPE for their employees,
split shifts and dispatch rooms, allowing telework whenever possible,
and increased cleaning. Railroaders have been heroic and recognize
their part in the Nation's critical infrastructure; they are showing
up, working, and taking pride in their jobs.
Many of our member railroads have responded to COVID-19 creatively
to make sure essential work continues in a safe manner. Iowa Interstate
Railroad (IAIS) has also safely continued its bridge project in the
face of coronavirus. The railroad has brought the Booneville Bridge
project to near completion over the past winter and spring with the
help of CRISI grant funding that was awarded by USDOT in early 2019.
IAIS has been able to safely execute this project because the work is
conducted outside, by a small, heavily mechanized workforce that
naturally works at safe social distances. COVID-19 precautions are
reviewed in each job safety briefing at an appropriate social distance.
Reasonable precautions and workplace practices that already minimized
social proximity have allowed this large infrastructure project to
proceed without interruption. The first Council Bluffs-to-Chicago train
is expected to use the completed bridge in early June. This may be the
fastest, DOT-funded bridge project from award to completion ever
executed, despite the challenges posed by COVID-19.
USDOT and Congressional Actions
As you know, each year FRA establishes an emergency docket for
granting relief from its regulations necessary to enable railroads to
continue to provide essential transportation services, safely, in the
event of an emergency. FRA has been an excellent partner as we navigate
railroading through a pandemic and the relief granted has been part of
several measures (including following CDC and OSHA guidance) to keep
railroaders safe.
The emergency relief granted to the railroads due to the COVID-19
pandemic can be divided into two categories: (1) to enable railroad
employees to abide by social distancing requirements and guidelines;
and (2) to provide relief from certain regulations in the event
railroads face employee shortages due to illness, quarantine, child
care responsibilities or other challenges that could prevent attendance
at work.
FRA's grants of emergency relief specified strict conditions to be
complied with by railroads utilizing the relief and included tracking
processes for any relief exercised. FRA published a list of the
emergency relief provisions exercised by each railroad in the emergency
relief public docket. The emergency relief waivers granted by FRA were
set to expire 60 days from the dates of issuance, or on May 24, May 29,
and June 9, respectively. In response to a request of waiver
extensions, the FRA deemed select waivers to be extended to July 21, or
60 days from the date of issuance. This extension of regulatory relief
continues to assist railroads with social distancing. Short line
railroads rely on contractors to perform maintenance tasks. Many of
these contractors have received mandatory travel restrictions by their
employers making routine repairs and inspections difficult for short
lines. This workforce impact is expected to continue, and it is being
addressed by the emergency docket waiver process.
While FRA's regulatory relief has been very helpful in the short-
term and we are proud of our members' response in keeping employees
safe and service running, the future remains uncertain, particularly in
keeping infrastructure projects moving forward.
The best thing the Federal government can do is provide as much
stability and certainty as possible and be a strong partner on
infrastructure projects that support jobs in the short-and long-term.
Investments into short line freight rail infrastructure will help the
economy recover and will at the same time provide useful transportation
infrastructure that will benefit the country for generations to come.
This is why we believe it is critical to make the short line (45G) tax
credit permanent as well as increase funding for and tweak
transportation grant programs like CRISI, INFRA, and the state freight
formula program.
Lastly, this is not the time to make any long-term changes to
controversial policies like truck size and weight limits or crew size.
We have attached a one-page document that outlines our recommendations
for a coronavirus recovery package.
Conclusion
Thank you for the opportunity to share the short line freight rail
industry experience during the coronavirus pandemic, and all the
efforts of your committee during this unprecedented time. We look
forward to continued partnership as we work to keep serving customers
and communities safely and efficiently.
______
Response to Written Question Submitted by Hon. Roger Wicker to
John Bozzella
Question. As we discussed at the hearing, in-vehicle subscription
services, such as OnStar, can serve as a Wi-Fi hotspot for vehicle
owners and their families. Can you please include in the record
additional background on these systems and the extent new vehicles are
equipped with such systems?
Answer. Connectivity is an area of tremendous growth and innovation
throughout the automotive industry. Every year, automakers adopt new
technologies and services that help further improve safety, convenience
and user experience for drivers and passengers. These services range
from communication-based collision avoidance technologies, such as
vehicle-to-vehicle and vehicle-to infrastructure communications, to
``concierge services''--such as those provided through OnStar--which
may include Wi-Fi capability, automatic crash notification, emergency
roadside assistance, location-based services, and others.\1\
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\1\ Wards Intelligence defines Concierge Service as, ``a driver
information service such as GM's OnStar that is above and beyond just
emergency roadside assistance.''
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Your question specifically touched on both concierge services and
Wi-Fi capabilities. These offerings, and how they are packaged varies
across manufacturers. In fact, as reflected in the data below, many
vehicles have Wi-Fi capabilities regardless of whether they offer
concierge services. Wi-Fi capabilities have seen a rapid increase in
recent years, penetrating a larger portion of the fleet over a
relatively short period.
Factory Installed Wi-Fi Capability (U.S. Cars and Light Trucks)\2\
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\2\ See e.g., Wards Intelligence, ``% Factory Installed Electronic/
ADAS Equipment on U.S. Cars and Light Trucks, '16 Model Year,'' 2/27/
17; WardsIntelligence, ``% Factory Installed Electronic/ADAS Equipment
on U.S. Cars and Light Trucks, '17 Model Year,'' 1/16/18;
WardsIntelligence, ``% Factory Installed Electronic/ADAS Equipment on
U.S. Cars and Light Trucks, '18 Model Year,'' 1/22/19;
WardsIntelligence,'' % Factory Installed Electronic/ADAS Equipment on
U.S. Cars and Light Trucks, '19 Model Year,'' 1/2/2020
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2017 Model Year--33%
2018 Model Year--39%
2019 Model Year--48%
Factory Installed Concierge Services (U.S. Cars and Light Trucks)
2017 Model Year--23%
2018 Model Year--26.2%
2019 Model Year--29.3%
Continued growth and innovation in these and other connected
technologies and services represents one of the most promising and
exciting opportunities for both auto manufacturers and consumers who
benefit from these innovations.
______
Response to Written Questions Submitted by Hon. Dan Sullivan to
John Bozzella
Question 1. There has been continued discussions regarding the need
for congress to enact funding for infrastructure this year as an
economic stimulus in response to the pandemic. There is a desire to
pair surface transportation reauthorization with authorizations and
funding for Corps of Engineers projects and water/wastewater
infrastructure. Do you support congressional efforts to pass
infrastructure legislation?
Answer. Auto Innovators supports efforts in Congress to craft a
multi-year reauthorization of surface transportation programs that are
currently set to expire at the end of September. The certainty provided
by a long-term surface transportation bill represents a critical step
in upgrading and modernizing our Nation's roadways and infrastructure
in a way that envisions a safer, cleaner, and smarter future for
personal mobility. The need for action on this front is, now, perhaps
greater than ever as America looks toward recovery from both the public
health and economic crises caused by COVID-19.
Question 2. In response to the public health emergency, many
industries shifted to teleworking to help flatten the curve. Given that
teleworking is not an option for many critical infrastructure
employees, how can Congress and this Committee help to mitigate the
risks to employees that other industries are able to avoid?
Answer. We are proud of the efforts of our companies to respond to
the COVID-19 public health crisis, many of which answered the call and
re-tooled their plants to assist the Nation in manufacturing critically
needed medical devices and Personal Protective Equipment (PPE). We
understand that Members of this Committee are examining proposals that
would provide prioritized access to testing and PPE for key workers. We
appreciate the Committee's interest in this matter and welcome the
opportunity to work on this issue, as well as the need for targeted
liability protections for businesses who make a good-faith effort to
follow requisite health and safety protocols.
______
Response to Written Question Submitted by Hon. Marsha Blackburn to
John Bozzella
Question. What supply chain issues is your industry currently
facing? How can we help here?
Answer. Despite some lingering challenges due to the public health
crisis in certain localities in Mexico, the motor vehicle supply chain
is relatively stable, at present. There is no question, however, that
the ongoing COVID-19 public health crisis creates tremendous
uncertainty for complex interstate and international supply chains. If
states or regional trade partners are forced to revisit the use of more
restrictive policies on businesses to limit the spread of the virus and
protect their citizens, there is no doubt that this will stress the
supply chain even further. If vehicle manufacturers are forced to shut
down again, there are likely even greater risks to small and medium
suppliers who rely upon a timely reimbursement from automakers. Due to
the complex, integrated nature of automotive supply chains, the
industry has consistently stressed the importance of communication,
coordination and adoption of consistent health and safety practices in
states across the U.S., as well as with our regional trading partners--
to ensure the safe and responsible operation of this critical industry
throughout this ongoing public health crisis. Auto Innovators would
appreciate the Committee continuing its work to ensure coordination
across domestic and international supply chains, especially those
within the North American supplier network.
The U.S. has an opportunity to remain a leader in automotive
innovation but this requires fair, open, and competitive global
markets. The current marketplace realities surrounding manufacturing
exemplify the risks of the U.S. losing its leadership position relative
to innovative automotive technologies, especially advanced safety
technologies, automated vehicles, and battery technologies used in
electric-drive vehicles.
______
Response to Written Questions Submitted by Hon. Maria Cantwell to
John Bozzella
Employee Protection during the COVID-19 Public Health Crisis. Both
to mitigate the spread of the virus and in response to economic
changes, there have been large reductions in transportation movement,
as well as, production. The automotive industry shut down virtually all
of its North American plants for the entire month of April to help
contain the spread of the virus.
Freight and passenger rail have had drastic service reductions in
response to plunging demand, and companies across the country have had
workers staying home for several months. As states start to lift
certain restrictions intended to slow the spread of the virus, it is
imperative that we take the necessary steps to keep workers and the
travelling public safe while we continue to grapple with the COVID-19
virus.
Question 1. Do your members have the information they need to know
how to protect their employees during the COVID-19 public health
crisis?
Answer. Automakers have implemented, and continue to update, robust
health and safety guidelines based on a variety of information sources
including CDC guidance, engagement with state and local health
officials and public health experts, as well as engagement with
employees and their representatives. In addition, automakers also have
utilized various lessons learned from the restart of manufacturing
facilities across the globe that has assisted with the orderly and
phased restart of U.S. operations.
Question 2. If so, where did they obtain this information? Is it
specific to your unique industry and workplace? If not, do you think
the Federal government needs to provide additional information?
Answer. Information used to implement, and update, our industry's
health and safety practices is obtained through CDC Guidance,
consultation with state and local health officials and public health
experts, as well as direct engagement with employees and, where
applicable, their representatives. The auto industry is a global
industry; therefore, our members, as well as others throughout the
industry, benefited from lessons learned as international manufacturing
and supply chain operations came back online.
While each company may have a different playbook tailored to their
state or local requirements, or specific work environments, they are
all deploying robust safety practices as employees return to the
workplace. These may include, but are not limited to, temperature
checks, surveying employees for symptoms or warning signs prior to
returning to work, use of personal protective equipment (PPE), use of
innovative technologies to monitor social distancing, reimagining the
workplace to manage spacing on the floor such as protective barriers,
and limiting access to communal areas.
Question 3. Are you working with public health experts to ensure
that, as you reengage the workforce and as service levels start to
rise, that workers, customers, and passengers can trust they are
returning to a safe environment?
Answer. U.S. auto manufacturers and suppliers have focused on the
health and safety of our workforce and customers throughout the COVID-
19 pandemic. Our companies have built extensive health and safety
protocols based on CDC guidelines, and direct engagement with public
health experts and state and local health officials to make sure that
they can understand, as well as they can, the circumstances on the
ground. That said, these protocols are dynamic based on protocols and
recommendations that public health officials provide.
______
Response to Written Questions Submitted by Hon. Kyrsten Sinema to
John Bozzella
Infrastructure Investment. As we begin to recover from the economic
impacts of the coronavirus pandemic, many stakeholders from both sides
of the aisle have proposed a significant investment in our Nation's
infrastructure to boost the economic recovery. At the same time,
Congress has the responsibility to reauthorize our surface
transportation programs this year. Congress needs to consider long-term
investments in infrastructure, especially given the low interest rates.
Question 1. How has COVID-19 impacted the landscape for
infrastructure development?
Answer. The need for thoughtful, bipartisan action on a multi-year
surface transportation reauthorization bill is heightened as the auto
industry, along with the entire nation, adapts to and recovers from the
COVID-19 public health crisis. Automakers, suppliers, and related
stakeholders have been impacted by COVID-19 related losses, while
facing a declining sales trend from which to recoup investments. As the
industry recovers, however, policymakers and the industry must not lose
sight of the future. Therefore, governmental policies that support
market stability will become even more critical as our industry takes
on the simultaneous challenges of recovering from the pandemic and
sustaining investments in the innovations that will define the future
of personal mobility.
Question 2. From your perspective, what are the key aspects of a
long-term surface transportation bill?
Answer. When crafting a multi-year surface transportation bill,
Congress has a unique opportunity to maintain and expand U.S.
leadership and innovation in defining the future of advanced automotive
technologies--including next generation safety technologies such
vehicle to vehicle communications, vehicle to infrastructure, and
automated vehicle technologies. To provide the market certainty
necessary to transform personal mobility in the U.S. and overcome the
impacts of the COVID public health emergency, policymakers should
consider the following actions:
Enacting a Federal framework that provides for full-scale
testing and deployment of highly automated vehicles on U.S.
roadways
Preserving the entire 5.9 GHz spectrum for next-generation
automotive safety
Enacting policies at the Federal level that support, and
grow, a sustainable market for electric vehicles including the
buildout of the necessary charging and hydrogen refueling
infrastructure.
Enact policies that support the development and deployment
of the next generation of vehicle safety technologies in a
manner that is informed by real world data, encourages
innovation, and reflects market realities.
Question 3. How should Congress pay for infrastructure and what
sources of revenue would you recommend be included in the legislation?
Answer. Congress should consider both near term and longer-term
solutions to ensure that the Highway Trust Fund remains solvent. We
welcome the opportunity to work with Congress in identifying the
appropriate revenue sources for a surface transportation bill as the
process moves forward.
______
Response to Written Questions Submitted by Hon. Dan Sullivan to
Randy Guillot
Question 1. There has been continued discussions regarding the need
for congress to enact funding for infrastructure this year as an
economic stimulus in response to the pandemic. There is a desire to
pair surface transportation reauthorization with authorizations and
funding for Corps of Engineers projects and water/wastewater
infrastructure. Do you support congressional efforts to pass
infrastructure legislation?
Answer. ATA strongly supports both short-term infrastructure
investment and passage of a long-term replacement for the FAST Act.
These endeavors will shore up state and Federal transportation
revenues, which have been negatively impacted over the pandemic, while
also providing a real economic stimulus to the Nation. The dramatic
reductions in revenue from fuel and retail sales taxes, and in revenue
from a 12 percent Federal tax on truck purchases, have significantly
impacted federal, state and local surface transportation resources. As
a result, state and local transportation agencies have canceled or
delayed many projects. The result is an already dilapidated and vastly
underfunded highway system that is deteriorating even more rapidly,
both in terms of its condition and its performance. Revenue reductions
have also accelerated the impending insolvency of the Federal Highway
Trust Fund. The Treasury Department now projects that the HTF will
begin to go into the red by Spring 2021. Transportation agencies will
begin to scale back project lettings months before in anticipation of
reductions in federal-aid money. Therefore, any short-term revenue
provided to the states for surface transportation will simply prevent
projects already in the pipeline from being delayed or canceled, and to
prevent even further job losses.
Question 2. In response to the public health emergency, many
industries shifted to teleworking to help flatten the curve. Given that
teleworking is not an option for many critical infrastructure
employees, how can Congress and this Committee help to mitigate the
risks to employees that other industries are able to avoid?
Answer. Congress and this Committee should continue efforts to
ensure that essential and ``frontline'' workers--which includes the
trucking industry--receive prioritization for COVID-19 testing. ATA
supports prioritizing the healthcare sector for COVID-19 testing
supplies, and as testing becomes more available and abundant, we urge
the Federal government to provide COVID-19 testing resources to U.S.
employers that are engaged in essential business services. Increased
access to COVID-19 testing for our workforce will help mitigate the
spread of the coronavirus amongst essential workers by removing people
who have tested positive from the workplace and will better ensure the
safety and health of employees who are maintaining operations during
this pandemic. It is critical that these employees, who are required to
be at physical worksites in some proximity to other employees and/or
customers, have prioritized access to testing. We have a responsibility
to ensure that they can perform their work in a safe environment, and
access to testing would help us do so.
______
Response to Written Questions Submitted by Hon. Maria Cantwell to
Randy Guillot
Employee Protection during the COVID-19 Public Health Crisis. Both
to mitigate the spread of the virus and in response to economic
changes, there have been large reductions in transportation movement,
as well as, production. The automotive industry shut down virtually all
of its North American plants for the entire month of April to help
contain the spread of the virus.
Freight and passenger rail have had drastic service reductions in
response to plunging demand, and companies across the country have had
workers staying home for several months. As states start to lift
certain restrictions intended to slow the spread of the virus, it is
imperative that we take the necessary steps to keep workers and the
travelling public safe while we continue to grapple with the COVID-19
virus.
Question 1. Do your members have the information they need to know
how to protect their employees during the COVID-19 public health
crisis?
Answer. Yes. The Centers for Disease Control and Prevention (CDC)
and the Occupational Health and Safety Administration (OSHA) have
released both general and industry-specific employer guidance that
reflects the public health experts' current understanding of how to
prevent the spread of COVID-19 in the working environment. ATA members
have used this guidance to establish through procedures to help protect
employees in their company's' specific operating environment.
However, the biggest challenge for employers in protecting drivers
from COVID-19 is not lack of access to public health information, but
the ability to ensure that drivers out on the road have an adequate
place to rest, access to restroom facilities, and can find something to
eat--all while delivering critical medical supplies, food, and
protective equipment that keep our communities safe and fed. Truck
parking is dangerously scarce on a normal day, and the closing of some
state-run and private facilities at a time of heightened urgency for
freight deliveries is the most significant risk to our Nation's truck
drivers.
Question 2. If so, where did they obtain this information? Is it
specific to your unique industry and workplace? If not, do you think
the Federal government needs to provide additional information?
Answer. As stated above, ATA members have primarily depended on
OSHA and CDC guidance in obtaining information to protect their
workforce. ATA joined the Coalition for Workplace Safety (CWS) and 57
other organizations in providing feedback to the U.S. House
Subcommittee on Workforce Protections. Specifically, we advised against
requiring the OSHA to issue an Emergency Temporary Standard (ETS) in
response to the COVID-19 pandemic. An ETS would be far less agile at
adapting the Nation's evolving understanding of COVID-19 and the
societal response to the crisis. Instead, we urged OSHA to consider a
more nimble and effective solution: continue issuing industry-specific
guidance based on the latest information from the Centers for Disease
Control and Prevention (CDC). The guidance that is industry-specific is
far more effective for our member companies to implement and is
significantly more sensible than a one-size-fits-all standard that is
impracticable for a diverse industry like trucking.
Question 3. Are you working with public health experts to ensure
that, as you reengage the workforce and as service levels start to
rise, that workers, customers, and passengers can trust they are
returning to a safe environment?
Answer. Yes, ATA is working very closely with CDC, particularly
with staff from the National Institute for Occupational Safety and
Health (NIOSH), to ensure the guidance provided meets the needs of the
entire trucking industry and does not place any undue burdens that
could come into conflict with DOT regulations or could potentially harm
safety. Additionally, ATA's federation of state trucking associations
are working very closely with state and local public health official to
ensure that trucking companies within those states are able to respond
quickly to health and safety requirements and guidance to protect the
trucking workforce.
______
Response to Written Questions Submitted by Hon. Kyrsten Sinema to
Randy Guillot
Truck Excise Tax. In the wake of the coronavirus pandemic, the
United States has a clear need for a modern and resilient national
supply chain. Trucks are responsible for moving critical medical
supplies to hospitals and keeping essential businesses operating all
over the country. While trucking companies and drivers are stepping up
to supply the Nation during the crisis, many have been left out of
relief efforts. Several Arizona trucking companies and independent
operators have raised the prospect that a temporary waiver of the
excise tax on heavy-duty trucks may be a way to help the industry
recover.
Question 1. What impact do you think a short-term wavier of the
excise tax would have on the trucking industry as a whole and do you
think more needs to be done to protect our national supply chain
infrastructure?
Answer. As Congress considers legislation to respond to the
coronavirus pandemic and assist with economic recovery, we believe that
Congress should suspend the 12 percent Federal excise tax (FET) on the
purchase of new heavy-duty trucks and trailers until the end of 2021. A
suspension of the FET would serve as an effective and immediate policy
to spur the sales of newer, cleaner and safer trucks and equipment,
which would retain jobs in the trucking sector as the Nation works to
rebuild our economy.
As of June 11, North American Class 8 truck and tractor sales are
forecasted to decrease 50.9 percent in 2020 from 2019. (333,779 in
2019; 164,000 in 2020). Similarly, North American trailer sales are
forecasted to decrease 54.1 percent in 2020 from 2019. (400,636 in
2019; 183,700 in 2020). And, as a result of government-ordered
closures, truck manufacturing plants and truck dealers have either
suspended or scaled back operations.
To help jump start the economy and ensure our Nation's critical
supply chain, a suspension of the FET, which increases the cost of new
heavy-duty trucks and trailers by $22,000 on average, would immediately
spark the purchase of heavy-duty trucks and trailers. In turn, this
would help save or bring back the livelihoods of the 7.8 million
Americans employed in jobs related to trucking. A survey of trucking
companies in May revealed that 60 percent would be more likely to
purchase new equipment if the excise tax is suspended. Increased
purchase of new trucks and trailers, the vast majority of which are
manufactured domestically, would increase U.S. employment
opportunities.
In addition to saving jobs, a suspension of the FET would spur
sales of today's cleaner and safer heavy-duty trucks and trailers by
making them more affordable during this difficult economic time. Over
the past two decades, the trucking industry has made strong
environmental gains, and today's heavy-duty trucks are cleaner than
ever before. Cleaner fuel and engines utilizing advanced technologies
have combined to reduce nitrogen oxide emissions by 97 percent and
particulate matter emissions by 98 percent. Since 2010, more fuel-
efficient diesel trucks have saved 101 million barrels of crude oil and
reduced CO2 emissions by 43 million tons. Suspension of the
tax would also encourage the sale of newer trucks, which have the
latest safety technologies that help reduce roadway crashes and related
injuries and fatalities.
The antiquated 12 percent FET, which was adopted in 1917 to defray
the costs of World War I, is a prohibitive barrier to investments in
newer, cleaner, and safer trucks and equipment. It is the highest
excise tax imposed by the Federal government on any product or service.
Temporarily suspending this tax will incentivize carriers to purchase
new trucks and trailers, saving manufacturing jobs and putting cleaner,
safer trucks on the road.
Infrastructure Investment. As we begin to recover from the economic
impacts of the coronavirus pandemic, many stakeholders from both sides
of the aisle have proposed a significant investment in our Nation's
infrastructure to boost the economic recovery. At the same time,
Congress has the responsibility to reauthorize our surface
transportation programs this year. Congress needs to consider long-term
investments in infrastructure, especially given the low interest rates.
Question 2. How has COVID-19 impacted the landscape for
infrastructure development?
Answer. With regard to highway infrastructure investment, the
dramatic reductions in revenue from fuel and retail sales taxes, and in
revenue from a 12 percent Federal tax on truck purchases, have
significantly impacted federal, state and local resources. As a result,
state and local transportation agencies have canceled or delayed many
projects. The result is an already dilapidated and vastly underfunded
highway system that is deteriorating even more rapidly, both in terms
of its condition and its performance. Revenue reductions have also
accelerated the impending insolvency of the Federal Highway Trust Fund.
The Treasury Department now projects that the HTF will begin to go into
the red by Spring 2021. Transportation agencies will begin to scale
back project lettings months before in anticipation of reductions in
federal-aid money.
Question 3. From your perspective, what are the key aspects of a
long-term surface transportation bill?
Answer. A long-term surface transportation bill should:
Provide user-based revenue that is predictable and
sufficient to address the needs of the surface transportation
system. Research suggests a doubling of investment is required
to address all needs.
Focus on core highway infrastructure goals that improve
national and regional mobility. Money should be directed
primarily toward the National Highway System, and to the small
number of highway bottlenecks that cause a disproportionate
share of congestion.
Avoid shifting more money to non-highway projects and
programs. The Transit Account's share should not increase, and
new eligibilities, such as for Amtrak, should be avoided.
Furthermore, programs and requirements related to greenhouse
gas reduction should not increase project costs or impose new
requirements that take project selection flexibility away from
transportation agencies.
Protect highway users from harmful highway funding schemes
such as tolls on existing Interstates and untested vehicle
miles traveled fees.
Question 4. How should Congress pay for infrastructure and what
sources of revenue would you recommend be included in the legislation?
Answer. An increase in the fuel user fee is the most fair,
equitable and conservative way to pay for highway projects. ATA
supports an increase of 5 cents per year for 4 years, plus indexing.
This will raise approximately $340 billion over the first 10 years. The
cost to motorists will be minimal, with the average passenger vehicle
driver paying just $2 per week extra. In addition, unlike the
alternatives, a fuel tax has very low levels of evasion and collection
cost. While we acknowledge that the fuel tax will eventually have to be
replaced or supplemented due to changes in vehicle technology,
Department of Energy projections suggest that it is viable for at least
another decade. In the meantime, Congress should enact a new user fee
for vehicles that do not pay a fuel tax and provide a pathway toward a
new user fee to replace the fuel tax in the future.
______
Response to Written Questions Submitted by Hon. Dan Sullivan to
Ian N. Jefferies
Question 1. There has been continued discussions regarding the need
for congress to enact funding for infrastructure this year as an
economic stimulus in response to the pandemic. There is a desire to
pair surface transportation reauthorization with authorizations and
funding for Corps of Engineers projects and water/wastewater
infrastructure. Do you support congressional efforts to pass
infrastructure legislation?
Answer. The rail industry fully supports significant public
infrastructure funding, is committed to maintaining and furthering a
robust, environmentally sustainable freight transportation network into
the future, and believes a clear vision for future recovery includes
commonsense, bipartisan solutions for all Americans.
Throughout the COVID-19 pandemic, freight railroads and their
employees have steadfastly served the American people and have done so
relying almost entirely on private investments and without public
support. Railroads are ready to also play a key role in our Nation's
recovery by delivering the goods America needs, while also continuing
to safeguard the health and safety of our employees.
America's freight railroads operate overwhelmingly on
infrastructure that they own, build, maintain, and pay for themselves
with little or no government assistance. Railroads also invest on
average $25 billion per year in private funding to maintain and
modernize its network in order to improve safety and continue to
provide responsive service to its customers.
The freight rail industry's top priority in surface transportation
reauthorization legislation is to preserve its ability to serve its
customers and compete successfully in a safe, efficient, and cost
effective manner. Current policy has also helped railroads continue to
deliver for their employees and customers during this pandemic, and now
is not the time to retreat from that framework.
Other priorities of the freight rail industry include for any
surface transportation reauthorization/infrastructure legislation
include: