[House Hearing, 117 Congress]
[From the U.S. Government Publishing Office]


              EXAMINING THE ROLE OF FERRIES IN IMPROVING 
                               MOBILITY

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

                                (117-26)

                             REMOTE HEARING

                               BEFORE THE

                            SUBCOMMITTEE ON
                          HIGHWAYS AND TRANSIT

                                 OF THE

                              COMMITTEE ON
                   TRANSPORTATION AND INFRASTRUCTURE
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             FIRST SESSION

                               __________

                           SEPTEMBER 28, 2021

                               __________

                       Printed for the use of the
             Committee on Transportation and Infrastructure
             

[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]             


     Available online at: https://www.govinfo.gov/committee/house-
     transportation?path=/browsecommittee/chamber/house/committee/
                             transportation
                             
                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
46-518 PDF                 WASHINGTON : 2022                     
          
-----------------------------------------------------------------------------------   
     
  PETER A. DeFAZIO, Oregon, Chair
SAM GRAVES, Missouri                 ELEANOR HOLMES NORTON,
DON YOUNG, Alaska                      District of Columbia
ERIC A. ``RICK'' CRAWFORD, Arkansas  EDDIE BERNICE JOHNSON, Texas
BOB GIBBS, Ohio                      RICK LARSEN, Washington
DANIEL WEBSTER, Florida              GRACE F. NAPOLITANO, California
THOMAS MASSIE, Kentucky              STEVE COHEN, Tennessee
SCOTT PERRY, Pennsylvania            ALBIO SIRES, New Jersey
RODNEY DAVIS, Illinois               JOHN GARAMENDI, California
JOHN KATKO, New York                 HENRY C. ``HANK'' JOHNSON, Jr., 
BRIAN BABIN, Texas                   Georgia
GARRET GRAVES, Louisiana             ANDRE CARSON, Indiana
DAVID ROUZER, North Carolina         DINA TITUS, Nevada
MIKE BOST, Illinois                  SEAN PATRICK MALONEY, New York
RANDY K. WEBER, Sr., Texas           JARED HUFFMAN, California
DOUG LaMALFA, California             JULIA BROWNLEY, California
BRUCE WESTERMAN, Arkansas            FREDERICA S. WILSON, Florida
BRIAN J. MAST, Florida               DONALD M. PAYNE, Jr., New Jersey
MIKE GALLAGHER, Wisconsin            ALAN S. LOWENTHAL, California
BRIAN K. FITZPATRICK, Pennsylvania   MARK DeSAULNIER, California
JENNIFFER GONZALEZ-COLON,            STEPHEN F. LYNCH, Massachusetts
  Puerto Rico                        SALUD O. CARBAJAL, California
TROY BALDERSON, Ohio                 ANTHONY G. BROWN, Maryland
PETE STAUBER, Minnesota              TOM MALINOWSKI, New Jersey
TIM BURCHETT, Tennessee              GREG STANTON, Arizona
DUSTY JOHNSON, South Dakota          COLIN Z. ALLRED, Texas
JEFFERSON VAN DREW, New Jersey       SHARICE DAVIDS, Kansas, Vice Chair
MICHAEL GUEST, Mississippi           JESUS G. ``CHUY'' GARCIA, Illinois
TROY E. NEHLS, Texas                 ANTONIO DELGADO, New York
NANCY MACE, South Carolina           CHRIS PAPPAS, New Hampshire
NICOLE MALLIOTAKIS, New York         CONOR LAMB, Pennsylvania
BETH VAN DUYNE, Texas                SETH MOULTON, Massachusetts
CARLOS A. GIMENEZ, Florida           JAKE AUCHINCLOSS, Massachusetts
MICHELLE STEEL, California           CAROLYN BOURDEAUX, Georgia
                                     KAIALI`I KAHELE, Hawaii
                                     MARILYN STRICKLAND, Washington
                                     NIKEMA WILLIAMS, Georgia
                                     MARIE NEWMAN, Illinois
                                     TROY A. CARTER, Louisiana

                  Subcommittee on Highways and Transit

ELEANOR HOLMES NORTON, District of 
          Columbia, Chair
RODNEY DAVIS, Illinois               EDDIE BERNICE JOHNSON, Texas
DON YOUNG, Alaska                    ALBIO SIRES, New Jersey
ERIC A. ``RICK'' CRAWFORD, Arkansas  JOHN GARAMENDI, California
BOB GIBBS, Ohio                      HENRY C. ``HANK'' JOHNSON, Jr., 
THOMAS MASSIE, Kentucky              Georgia
SCOTT PERRY, Pennsylvania            SEAN PATRICK MALONEY, New York
JOHN KATKO, New York                 JULIA BROWNLEY, California
BRIAN BABIN, Texas                   FREDERICA S. WILSON, Florida
DAVID ROUZER, North Carolina         ALAN S. LOWENTHAL, California
MIKE BOST, Illinois                  MARK DeSAULNIER, California
DOUG LaMALFA, California             STEPHEN F. LYNCH, Massachusetts
BRUCE WESTERMAN, Arkansas            ANTHONY G. BROWN, Maryland
MIKE GALLAGHER, Wisconsin            GREG STANTON, Arizona, Vice Chair
BRIAN K. FITZPATRICK, Pennsylvania   COLIN Z. ALLRED, Texas
JENNIFFER GONZALEZ-COLON,            JESUS G. ``CHUY'' GARCIA, Illinois
  Puerto Rico                        ANTONIO DELGADO, New York
TROY BALDERSON, Ohio                 CHRIS PAPPAS, New Hampshire
PETE STAUBER, Minnesota              CONOR LAMB, Pennsylvania
TIM BURCHETT, Tennessee              JAKE AUCHINCLOSS, Massachusetts
DUSTY JOHNSON, South Dakota          CAROLYN BOURDEAUX, Georgia
MICHAEL GUEST, Mississippi           MARILYN STRICKLAND, Washington
TROY E. NEHLS, Texas                 GRACE F. NAPOLITANO, California
NANCY MACE, South Carolina           JARED HUFFMAN, California
NICOLE MALLIOTAKIS, New York         SALUD O. CARBAJAL, California
BETH VAN DUYNE, Texas                SHARICE DAVIDS, Kansas
CARLOS A. GIMENEZ, Florida           SETH MOULTON, Massachusetts
MICHELLE STEEL, California           KAIALI`I KAHELE, Hawaii
SAM GRAVES, Missouri (Ex Officio)    NIKEMA WILLIAMS, Georgia
                                     MARIE NEWMAN, Illinois
                                     STEVE COHEN, Tennessee
                                     PETER A. DeFAZIO, Oregon (Ex 
                                     Officio)

                                CONTENTS

                                                                   Page

Summary of Subject Matter........................................   vii

                 STATEMENTS OF MEMBERS OF THE COMMITTEE

Hon. Eleanor Holmes Norton, a Delegate in Congress from the 
  District of Columbia, and Chair, Subcommittee on Highways and 
  Transit, opening statement.....................................     1
    Prepared statement...........................................     2
Hon. Rodney Davis, a Representative in Congress from the State of 
  Illinois, and Ranking Member, Subcommittee on Highways and 
  Transit, opening statement.....................................     3
    Prepared statement...........................................     5
Hon. Peter A. DeFazio, a Representative in Congress from the 
  State of Oregon, and Chair, Committee on Transportation and 
  Infrastructure, prepared statement.............................    53
Hon. Sam Graves, a Representative in Congress from the State of 
  Missouri, and Ranking Member, Committee on Transportation and 
  Infrastructure, prepared statement.............................    54
Hon. Eddie Bernice Johnson, a Representative in Congress from the 
  State of Texas, prepared statement.............................    54

                               WITNESSES

Patty Rubstello, P.E., Assistant Secretary, Washington State 
  Department of Transportation, Ferries Division, oral statement.     6
    Prepared statement...........................................     8
Seamus Murphy, Executive Director, San Francisco Bay Area Water 
  Emergency Transportation Authority (WETA), oral statement......    13
    Prepared statement...........................................    15
Hon. Frank J. Principi, Chairman, M-495 Fast Ferry Stakeholder 
  Group, Northern Virginia Regional Commission, oral statement...    18
    Prepared statement...........................................    20
Kyle Godar, County Engineer, Calhoun County, Illinois, oral 
  statement......................................................    21
    Prepared statement...........................................    23

                       SUBMISSIONS FOR THE RECORD

Letter of April 21, 2021, from Hon. Rodney Davis, a 
  Representative in Congress from the State of Illinois, to 
  Stephanie Pollack, Acting Administrator, Federal Highway 
  Administration and Vance F. Stewart III, Acting Assistant 
  Secretary of the Army (Civil Works), Army Corps of Engineers 
  (Civil Works), Submitted for the Record by Hon. Rodney Davis...     4

                                APPENDIX

Questions to Patty Rubstello, P.E., Assistant Secretary, 
  Washington State Department of Transportation, Ferries 
  Division, from:
    Hon. Jenniffer Gonzalez-Colon................................    55
    Hon. Stephen F. Lynch........................................    57
    Hon. Eddie Bernice Johnson...................................    57
Questions to Seamus Murphy, Executive Director, San Francisco Bay 
  Area Water Emergency Transportation Authority (WETA), from:
    Hon. Rodney Davis............................................    58
    Hon. Jenniffer Gonzalez-Colon................................    58
    Hon. Stephen F. Lynch........................................    59
    Hon. Eddie Bernice Johnson...................................    60
Questions to Hon. Frank J. Principi, Chairman, M-495 Fast Ferry 
  Stakeholder Group, Northern Virginia Regional Commission, from:
    Hon. Jenniffer Gonzalez-Colon................................    60
    Hon. Stephen F. Lynch........................................    61
    Hon. Eddie Bernice Johnson...................................    61
Questions to Kyle Godar, County Engineer, Calhoun County, 
  Illinois, from:
    Hon. Jenniffer Gonzalez-Colon................................    62
    Hon. Stephen F. Lynch........................................    63
    Hon. Eddie Bernice Johnson...................................    63
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                           September 28, 2021

    SUMMARY OF SUBJECT MATTER

    TO:       Members, Subcommittee on Highways and Transit
    FROM:   Staff, Subcommittee on Highways and Transit
    RE:       Subcommittee Hearing on ``Examining the Role of 
Ferries in Improving Mobility''



                                PURPOSE

    The Subcommittee on Highways and Transit will meet on 
Tuesday, September 28, 2021, at 10:00 a.m. EDT in 2167 Rayburn 
House Office Building and virtually via Zoom to receive 
testimony related to the hearing entitled ``Examining the Role 
of Ferries in Improving Mobility.'' The purpose of this hearing 
is to examine the role of ferry transportation in reducing 
congestion and contributing to clean mobility alternatives, and 
to examine the federal programs that support this mode of 
transportation. The subcommittee will hear from representatives 
of the Washington State Department of Transportation, M-495 
Regional Commuter Ferry Group, San Francisco Bay Area Water 
Emergency Transportation Authority (WETA), and the Calhoun 
County, Illinois Engineering Department.

                               BACKGROUND

FEDERAL INVESTMENT IN FERRIES

FEDERAL HIGHWAY ADMINISTRATION (FHWA)

    Under current law, the Highways and Transit Subcommittee 
authorizes two programs that provide federal funds to support 
ferry transportation. The Ferry Boat Discretionary (FBD) 
Program is a formula-based program for the construction of 
ferry boat and ferry terminal facilities administered by FHWA. 
The program, created under the Intermodal Surface 
Transportation Efficiency Act of 1991, was most recently 
reauthorized in 2015 in the Fixing America's Surface 
Transportation (FAST) Act (P.L. 114-94) which provided $80 
million per year over five years in contract authority from the 
Highway Trust Fund (HTF), and was continued in the Continuing 
Appropriations Act, 2021 and Other Extensions Act (P.L. 116-
159). In fiscal year (FY) 2020, the program provided funds to 
more than 100 public recipients in 37 states and 
territories.\1\
---------------------------------------------------------------------------
    \1\ https://www.fhwa.dot.gov/specialfunding/fbp/200820.cfm
---------------------------------------------------------------------------
    In July 2021, the House passed the Investing in a New 
Vision for the Environment and Surface Transportation (INVEST) 
in America Act (H.R. 3684), which reauthorized the FBD program 
and provided increased funding of $600 million over five years 
($120 million per year) in contract authority. In August 2021, 
the Senate passed the Infrastructure Investment and Jobs Act 
(IIJA; Senate amendment to H.R. 3684), which included $912 
million over five years in total guaranteed funding. Of that 
total, $570 million is contract authority from the HTF and $342 
million is guaranteed additional spending over the next five 
years. The $570 million is provided as follows:
      FY22: $178,400,000
      FY23: $180,400,000
      FY24: $182,400,000
      FY25: $184,400,000
      FY26: $186,400,000

FEDERAL TRANSIT ADMINISTRATION (FTA)

    Administered by the Federal Transit Administration (FTA), 
the Passenger Ferry Grant program (49 U.S.C. 5307(h)) provides 
grants on a competitive basis to improve the condition of 
public ferry systems in urbanized areas. The program was 
authorized at $30 million annually in the Fixing America's 
Surface Transportation (FAST) Act (P.L. 114-94) and was 
continued at $30 million in FY 2021 under the Continuing 
Appropriations Act, 2021 and Other Extensions Act (P.L. 116-
159). Funds are provided as a takedown from the Urbanized Area 
Formula Grant program. In FY 2020, FTA awarded grants under 
this program to public transportation entities in 12 states.\2\
---------------------------------------------------------------------------
    \2\ https://www.transit.dot.gov/grants/grant-programs/passenger-
ferry-grant-program-2020-selected-projects
---------------------------------------------------------------------------
    The House-passed INVEST in America Act provided $245 
million for FY23 through FY26 for passenger ferries and would 
authorize the Secretary to make grants for zero- or reduced-
emission passenger ferries. The IIJA does not include an 
increase in funding for this account.

OTHER PROPOSED PROGRAMS

    The IIJA included $1.25 billion in additional guaranteed 
general fund funding for ferry programs. Of the total, $1.0 
billion is for a Ferry Service in Rural Areas program, and $250 
million is for an Electric or Low-Emitting Ferry Pilot program 
to support alternative fuel ferry service.

FERRY RIDERSHIP

    Ferries operate in diverse areas of the United States, 
including in some of the nation's most congested urban areas--
such as New York City and San Francisco--to provide an 
alternative to crowded roadways and transit lines.\3\ Likewise, 
coastal regions--including along the coast of Washington State 
and Alaska--rely on ferries for connectivity between island and 
mainland communities. Federal funds also support ferry service 
in a wide range of non-coastal, predominantly rural states, 
including Kentucky, Montana, Oklahoma, Tennessee, and Utah.
---------------------------------------------------------------------------
    \3\ https://www.apta.com/wp-content/uploads/APTA-2021-Fact-Book.pdf
---------------------------------------------------------------------------
    Ferry data is collected under a national ferry database 
overseen by the Department of Transportation's Bureau of 
Transportation Statistics (BTS). Conducted biennially, the 
National Census of Ferry Operators (NCFO) is a survey of all 
ferry operations in the United States and territories, and 
includes information on operators, route segments, terminals, 
and vessel data.
    Due to the impact on ridership from the COVID-19 pandemic, 
the collection of data for the 2022 NCFO has been postponed and 
will begin on April 1, 2023.\4\ According to the most recently 
available data from the 2020 NCFO, a survey of 246 ferry 
operators found that in 2019, 131.6 million passengers were 
carried on ferries in the United States and territories. Data 
from the census showed that 66.7 percent of operators reported 
that commuter transit was one of the purposes of their trip, 
with pleasure/recreation coming in second at 58.6 percent.\5\ 
Census data further showed that 22.4 percent of operators 
reported emergency services as one of the purposes of the 
trip.\6\
---------------------------------------------------------------------------
    \4\ https://www.bts.gov/NCFO
    \5\ https://content.govdelivery.com/accounts/USDOT/bulletins/
2ea3186
    \6\ https://www.bts.gov/NCFO
    
    
Note: Operators may choose multiple responses so percentages do not add 
                              up to 100%.
            Source: 2020 National Census of Ferry Operators

CONGESTION AND EMISSIONS IMPACTS

    Our nation's ferry systems quickly and efficiently 
transport millions of passengers, which reduces congestion and 
wear and tear on our nation's roads. Ferry service provides a 
transportation alternative to congested roadways in some of 
America's largest urbanized areas. Although ferries represent a 
small percentage of the total transit ridership, according to 
data from the American Public Transportation Association, the 
New York City Department of Transportation saw ferryboat 
ridership grow by nearly 3 percent to 25,222 unlinked passenger 
trips in 2019, totaling 131,154.3 passenger miles travelled.\7\
---------------------------------------------------------------------------
    \7\ ``2021 Public Transportation Fact Book'' American Public 
Transportation Association, (May 2021) https://www.apta.com/wp-content/
uploads/APTA-2021-Fact-Book.pdf.
---------------------------------------------------------------------------
    The COVID-19 pandemic resulted in a significant reduction 
in traffic congestion and transit ridership across the United 
States. Early 2021 data suggests rebounding traffic congestion 
levels, and points to a continued need to find solutions to 
reducing delay, including through the provision of alternate 
modes of travel.\8\ Where feasible, ferries have the potential 
to serve a role in reducing roadway congestion.\9\
---------------------------------------------------------------------------
    \8\ ``2021 Urban Mobility Report'' Texas A&M Transportation 
Institute, (June, 2021) https://static.tti.tamu.edu/tti.tamu.edu/
documents/mobility-report-2021.pdf.
    \9\ 2015 National Transit Summary and Trends (National Transit 
Database). Federal Transit Administration Office of Budget and Policy. 
Oct. 2016. https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/
2015%20NTST.pdf
---------------------------------------------------------------------------
    Improvements in battery technology hold the potential for 
expanding electrification in public ferry systems. Ferries in 
particular are well suited for electrification, compared to 
other maritime applications, due to short travel distances and 
sufficient space for battery packs onboard.\10\ In recognition 
that ferries generate the most carbon and other greenhouse gas 
emissions of any Washington State government source, Washington 
has emerged as a leader in ferry electrification, following the 
signing of an Executive Order (EO 20-01) by Governor Jay Inslee 
in 2019 to transition the state's ferries to be a zero-carbon-
emission fleet.\11\
---------------------------------------------------------------------------
    \10\ https://connect.ncdot.gov/projects/research/Pages/
ProjDetails.aspx?ProjectID=2022-01
    \11\ 20-01 SEEP Executive Order (tmp).pdf (wa.gov) [https://
www.governor.wa.gov/sites/default/files/exe_order/20-
01%20SEEP%20Executive%20Order%20%28tmp%29.pdf]
---------------------------------------------------------------------------

                              WITNESS LIST

      Patty Rubstello, Assistant Secretary for Ferries, 
Washington State Department of Transportation
      Seamus Murphy, Executive Director, San Francisco 
Bay Area Water Emergency Transportation Authority (WETA)
      The Honorable Frank J. Principi, Chair, M-495 
Regional Commuter Ferry Group
      Kyle Godar, County Engineer, Calhoun County 
Highway Department (Illinois)

 
          EXAMINING THE ROLE OF FERRIES IN IMPROVING MOBILITY

                              ----------                              


                      TUESDAY, SEPTEMBER 28, 2021

                  House of Representatives,
              Subcommittee on Highways and Transit,
            Committee on Transportation and Infrastructure,
                                                    Washington, DC.
    The subcommittee met, pursuant to call, at 10 a.m. in room 
2167 Rayburn House Office Building and via Zoom, Hon. Eleanor 
Holmes Norton (Chair of the subcommittee) presiding.
    Members present in person: Ms. Norton, Mr. Garamendi, Mr. 
Lynch, Mr. Auchincloss, Mr. Rodney Davis, and Mr. LaMalfa.
    Members present remotely: Ms. Johnson of Texas, Mr. Sires, 
Mr. Johnson of Georgia. Ms. Wilson of Florida, Mr. DeSaulnier, 
Mr. Delgado, Mr. Lamb, Ms. Bourdeaux, Ms. Strickland, Mrs. 
Napolitano, Mr. Huffman, Mr. Carbajal, Ms. Davids of Kansas, 
Mr. Moulton, Ms. Williams of Georgia, Mr. Massie, Mr. 
Balderson, Mr. Johnson of South Dakota, Mr. Guest, Mr. Nehls, 
Ms. Mace, Ms. Malliotakis, Mr. Gimenez, and Mrs. Steel.
    Ms. Norton. The subcommittee will come to order.
    I ask unanimous consent that the chair be authorized to 
declare a recess at any time during today's hearing.
    Without objection, so ordered.
    I also ask unanimous consent that Members not on the 
subcommittee be permitted to sit with the subcommittee at 
today's hearing and ask questions.
    Without objection, so ordered.
    As a reminder, please keep your microphone muted unless 
speaking. Should I hear any inadvertent background noise, I 
will request that the Member please mute his or her microphone.
    To insert a document into the record, please have your 
staff email it to [email protected].
    So let me begin.
    I want to welcome all to today's hearing, ``Examining the 
Role of Ferries in Improving Mobility.''
    While the Subcommittee on Highways and Transit currently 
oversees two ferry programs--one under the Federal Highway 
Administration and one under the Federal Transit 
Administration--this is the first hearing the subcommittee has 
ever held on ferry transportation. This is a historic hearing 
and, given climate control issues, it could not be more apt.
    Our transportation system is facing significant challenges: 
traffic gridlock that wastes time and money; inequality and 
lack of accessibility; a changing climate that causes severe 
storms and increasing flooding; and serving as the number-one 
source of greenhouse gas emissions. There is no silver bullet 
to solving these problems. But providing more transportation 
choices is a step in the right direction.
    One of my priorities as subcommittee chair has been 
ensuring that we consider innovative and varied modes of 
transportation, whether improved public transit, new approaches 
to micromobility, such as scooters, or utilizing our waterways 
to move people.
    Here in the DC metropolitan area, we face some of the worst 
traffic congestion in the country. A 2017 study by the traffic 
data firm INRIX found that the worst traffic hotspot in the 
country was along Interstate 95 between the Fairfax County 
Parkway and Fredericksburg, Virginia. One of our witnesses, 
Frank Principi, represents a coalition looking to expand ferry 
service along that very corridor, which could help to improve 
that traffic bottleneck and provide more transportation 
options.
    We know that we cannot solve congestion by simply building 
more highway lanes--in many congestion areas, more roads simply 
mean more traffic. That means we need to pursue alternatives, 
including expanded ferry service.
    Ferries also have the potential to help us reduce carbon 
pollution. While passenger cars and light-duty trucks account 
for 58 percent of U.S. transportation greenhouse gas emissions, 
ships and boats account for just 2 percent. Shifting more trips 
from highways to waterways holds great promise for reducing our 
carbon footprint. It can also reduce other forms of air 
pollution, including smog that causes asthma attacks, heart 
attacks, and other adverse health outcomes.
    While maritime modes of transportation like ferries are 
among the cleanest transportation options already, their 
emissions can be reduced even further, as operators begin 
converting their fleets to hybrid, electric, or alternative 
fuels. I look forward to hearing from witnesses today about 
their efforts toward fleet conversion.
    Ferry service not only provides an important transportation 
option, it also represents an investment in our communities. It 
can be a catalyst for revitalization, expanding access to small 
businesses and community centers, and bolstering the local 
economy.
    As we work to build a transportation system that is better, 
more innovative, sustainable, and equitable, we must ensure 
that the Federal Government is a strong partner for those 
operating ferry service, and those who wish to launch new 
routes. That means providing funding options through our 
Federal programs and doing the research and data collection 
needed to guide these investments.
    I thank each of our witnesses for joining us today and look 
forward to your testimony.
    [Ms. Norton's prepared statement follows:]

                                 
    Prepared Statement of Hon. Eleanor Holmes Norton, a Delegate in 
  Congress from the District of Columbia, and Chair, Subcommittee on 
                          Highways and Transit
    Welcome to today's hearing examining the role of ferries in 
mobility. While the Subcommittee on Highways and Transit currently 
oversees two ferry programs--one under the Federal Highway 
Administration and one under the Federal Transit Administration--this 
is the first hearing the subcommittee has held on ferry transportation.
    Our transportation system is facing significant challenges--traffic 
gridlock that wastes time and money; inequality and a lack of 
accessibility; a changing climate that causes severe storms and 
increased flooding; and serving as the number one source of greenhouse 
gas emissions.
    There is no silver bullet to solving these problems--but providing 
more transportation choices is a step in the right direction. One of my 
priorities as subcommittee chair has been ensuring that we consider 
innovative and varied modes of transportation--whether improved public 
transit, new approaches to micromobility such as scooters, or utilizing 
our waterways to move people.
    Here in the D.C. metropolitan area, we face some of the worst 
traffic congestion in the country. A 2017 study by the traffic data 
firm Inrix found that the worst traffic hotspot in the country was 
along Interstate 95 between the Fairfax County Parkway and 
Fredericksburg, Virginia. One of our witnesses, Frank Principi, 
represents a coalition looking to expand ferry service along that very 
corridor, which could help to improve that traffic bottleneck and 
provide more transportation options.
    We know that we cannot solve congestion by simply building more 
highway lanes--in many congested areas, more roads simply means more 
traffic. That means we need to pursue alternatives, including expanded 
ferry service.
    Ferries also have the potential to help us reduce carbon pollution. 
While passenger cars and light-duty trucks account for 58 percent of 
U.S. transportation greenhouse gas emissions, ships and boats account 
for just 2 percent. Shifting more trips from highways to waterways 
holds great promise for reducing our carbon footprint. It can also 
reduce other forms of air pollution, including smog, that cause asthma 
attacks, heart attacks, and other adverse health outcomes.
    While maritime modes of transportation like ferries are among the 
cleanest transportation options already, their emissions can be reduced 
even further as operators begin converting their fleets to hybrid, 
electric, or alternative fuels.
    I look forward to hearing from our witnesses today about their 
efforts toward fleet conversion.
    Ferry service not only provides an important transportation option, 
it also represents an investment in our communities. It can be a 
catalyst for revitalization, expanding access to small businesses and 
community centers and bolstering the local economy.
    As we work to build a transportation system that is more 
innovative, sustainable, and equitable, we must ensure that the federal 
government is a strong partner for those operating ferry service, and 
for those who wish to launch new routes. That means providing funding 
options through our federal programs and doing the research and data 
collection needed to guide these investments.
    I thank each of our witnesses for joining us today and look forward 
to the testimony.

    Ms. Norton. I am pleased to ask our ranking member, Mr. 
Davis, for an opening statement.
    Mr. Davis. Thank you, Madam Chair. Great to see you. Great 
to be here, and a really great issue to address.
    I do want to welcome everybody to today's hearing on the 
role of ferries in improving mobility. I especially want to 
welcome Kyle Godar, the county engineer from Calhoun County, 
Illinois. Mr. Godar is my constituent and has been working with 
my office to resolve an issue that Calhoun County, which is a 
county that is a peninsula that sits between the Illinois and 
Mississippi Rivers, but they have a problem utilizing its ferry 
boat program funding. My hope at this hearing is to draw 
attention to this problem, so that we can finally get the 
Federal Highway Administration and the Army Corps of Engineers 
to come together to find a solution.
    At this time, Madam Chair, I would ask unanimous consent to 
submit for the record my letter that I sent to both agencies 
5\1/2\ months ago, requesting coordinated technical assistance 
in resolving this issue.
    Ms. Norton. So ordered.
    [The information follows:]

                                 
 Letter of April 21, 2021, from Hon. Rodney Davis, a Representative in 
   Congress from the State of Illinois, to Stephanie Pollack, Acting 
Administrator, Federal Highway Administration and Vance F. Stewart III, 
  Acting Assistant Secretary of the Army (Civil Works), Army Corps of 
 Engineers (Civil Works), Submitted for the Record by Hon. Rodney Davis
                                                    April 21, 2021.
Stephanie Pollack,
Acting Administrator,
Federal Highway Administration (FHWA), 1200 New Jersey Ave., SE, 
        Washington, DC 20590.
Vance F. Stewart, III,
Acting Assistant Secretary of the Army (Civil Works),
Army Corps of Engineers (Civil Works) (Corps), 108 Army Pentagon, 
        Washington, DC 20310-0108.

    Dear Acting Administrator Pollack and Acting Assistant Secretary 
Stewart:
    I write to request technical assistance from both the Federal 
Highway Administration (FHWA) and the Army Corps of Engineers (Corps) 
to resolve an issue my constituent, the Calhoun County Highway 
Department, currently faces. Additionally, I respectfully ask that your 
agencies coordinate in assisting me to successfully resolve this issue.
    At issue is the inability of the Calhoun County Highway Department 
to utilize FHWA Ferry Boat Program (FBP) funding to make improvements 
to the Golden Eagle Ferry landing. Calhoun County is in Illinois along 
the Mississippi River. The Golden Eagle Ferry landing is located across 
the Mississippi River in St. Charles County, Missouri. The needed 
improvements would occur on land owned by the Corps and leased to the 
ferry operator hired by Calhoun County, and on private land on which 
the ferry operator owns a private easement.
    This issue has been separately raised with your respective 
agencies, though never at the same time. Your respective agency staff 
were responsive, and I appreciate their assistance.
    On March 4th, 2019, my staff raised this issue with FHWA. At that 
time, FHWA determined that FBP funds could not be used, nor could 
Surface Transportation Block Grant Program (STBG) funds because a 
portion of the improvements would occur on a private road. 
Additionally, even if the road were public, FBP funds could not be used 
because FHWA determined the improvements would occur on an approach 
road. Alternatively, if it were a public road, STBG funds could be 
utilized to make improvements.
    On July 13th, 2020, my staff raised this issue with the Corps. The 
purpose of the email was to see if it would be possible for the Corps 
to purchase the private land connecting the Corps' property to the 
public highway system, and if the Corps could obligate funds to improve 
the road on the Corps' property. At that time, it was determined the 
Corps could not purchase the private land because the land was not 
necessary to the authorized flood control project. Additionally, it was 
determined that the Corps could not obligate funding to improve the 
road because it was not part of the Corps' authorized project.
    My goal in seeking coordinated technical assistance from FHWA and 
the Corps is to find a solution that allows the Calhoun County Highway 
Department to improve the safety and mobility of ferries utilizing the 
Golden Eagle Ferry landing. I appreciate your consideration of this 
request and am happy to provide further details as needed.
        Sincerely,
                                              Rodney Davis,
                                                Member of Congress.

    Mr. Davis. And 5\1/2\ months is a long time, and it is 
pretty frustrating when we don't get responses from the Federal 
agencies that we send letters to.
    I would ask, if we continue to not get responses, Madam 
Chair, if you and I can maybe do a joint letter to let these 
agencies know we would just appreciate a response.
    Ms. Norton. I would be happy to join the ranking member in 
such a letter.
    Mr. Davis. Thank you. Thank you very much.
    Under current law this subcommittee authorizes two programs 
that provide Federal funds for ferry transportation. The Ferry 
Boat Discretionary Program is administered by the Federal 
Highway Administration, and the Passenger Ferry Grant Program 
is administered by the Federal Transit Administration.
    The Senate's bipartisan infrastructure bill includes two 
new ferry boat programs and grows ferry program funding levels 
from $550 million to $2.3 billion.
    Ferries serve diverse areas of our country, much like our 
highway and bridge network, from urban and coastal areas to 
rural America. As I mentioned earlier, I have a ferry in my 
district--actually, multiple ferries--that operate from 
Illinois across the Mississippi River to Missouri. And also, we 
have ferries that operate intrastate between Greene County and 
Jersey County, Illinois, over to Calhoun, and that is what Mr. 
Godar is here to discuss.
    The importance of that ferry to the community it serves 
cannot be understated, which is why it is so important to 
resolve Mr. Godar's issues. While ferry service certainly is 
not a solution for each State, it is important to understand 
the role ferries play in quickly connecting people and 
communities through water crossings.
    It is also important to understand the needs of ferry boat 
and facility owners and operators. Addressing these needs, as 
those here before us today will testify, is critical to 
improving our ferry operations.
    I look forward to hearing about ferry ridership, 
technological innovations, challenges ahead, and proposed 
solutions identified in implementing ferry boat programs.
    With that, I want to thank our witnesses for joining us 
this morning, and I look forward to hearing their testimony.
    [Mr. Davis's prepared statement follows:]

                                 
 Prepared Statement of Hon. Rodney Davis, a Representative in Congress 
    from the State of Illinois, and Ranking Member, Subcommittee on 
                          Highways and Transit
    Thank you, Chair Norton. I want to welcome everyone to today's 
hearing on the role of ferries in improving mobility. I especially want 
to welcome Kyle Godar, the County Engineer from Calhoun County, 
Illinois. Mr. Godar is my constituent and has been working with my 
office to resolve an issue Calhoun County has with utilizing its Ferry 
Boat Program funding. My hope at this hearing is to draw attention to 
this problem, so that we can finally get the Federal Highway 
Administration and the Army Corps of Engineers to come together and 
find a solution. At this time, I'd ask unanimous consent to submit for 
the record my letter I sent to both agencies in April of this year 
requesting coordinated technical assistance in resolving this issue.
    Under current law, this subcommittee authorizes two programs that 
provide Federal funds for ferry transportation. The Ferry Boat 
Discretionary Program is administered by the Federal Highway 
Administration (FHWA), and the Passenger Ferry Grant Program is 
administered by the Federal Transit Administration (FTA). The Senate's 
bipartisan infrastructure bill includes two new ferry boat programs and 
grows ferry program funding levels from $550 million to $2.3 billion.
    Ferries serve diverse areas of our country, much like our highway 
and bridge network, from urban and coastal areas to rural America.
    As I mentioned earlier, I have a ferry in my district that operates 
across the Mississippi River between Illinois and Missouri that Mr. 
Godar is going to discuss. The importance of that ferry to the 
community it serves cannot be understated, which is why it is so 
important to resolve Mr. Godar's issues.
    While ferry service certainly is not a solution for each state, it 
is important to understand the role ferries play in quickly connecting 
people and communities through water crossings. It also is important to 
understand the needs of ferry boat and facility owners and operators. 
Addressing these needs, as those here before us today will testify, is 
critical to improving our ferry operations.
    I look forward to hearing about ferry ridership, technological 
innovations, and challenges and proposed solutions identified in 
implementing ferry boat programs. With that, I want to thank our 
witnesses for joining us this morning, and I look forward to hearing 
their testimony.

    Mr. Davis. I yield back.
    Ms. Norton. I thank my good friend for his opening 
statement.
    I would now like to welcome our witnesses on our panel: Ms. 
Patty Rubstello, assistant secretary for ferries, Washington 
State Department of Transportation; Mr. Seamus Murphy, 
executive director of the San Francisco Bay Area Water 
Emergency Transportation Authority; the Honorable Frank 
Principi, chair, M-495 Regional Commuter Ferry Group; and Mr. 
Kyle Godar, county engineer, Calhoun County Highway Department. 
I thank each of you for being here, and I look forward to your 
testimony.
    Without objection, our witnesses' full testimony will be 
included in the record.
    Since your written testimony has been made a part of the 
record, the subcommittee requests that you limit your oral 
testimony to 5 minutes. Let us proceed with Ms. Rubstello.
    You may proceed.

   TESTIMONY OF PATTY RUBSTELLO, P.E., ASSISTANT SECRETARY, 
    WASHINGTON STATE DEPARTMENT OF TRANSPORTATION, FERRIES 
DIVISION; SEAMUS MURPHY, EXECUTIVE DIRECTOR, SAN FRANCISCO BAY 
  AREA WATER EMERGENCY TRANSPORTATION AUTHORITY (WETA); HON. 
   FRANK J. PRINCIPI, CHAIRMAN, M-495 FAST FERRY STAKEHOLDER 
 GROUP, NORTHERN VIRGINIA REGIONAL COMMISSION; AND KYLE GODAR, 
           COUNTY ENGINEER, CALHOUN COUNTY, ILLINOIS

    Ms. Rubstello. Chairwoman Norton, Ranking Member Davis, and 
distinguished members of the subcommittee, thank you for the 
opportunity to testify today to share information about 
Washington State's ferry system. My name is Patty Rubstello, 
and I serve as assistant secretary at Washington State 
Department of Transportation, leading the Ferries Division.
    WSDOT operates Washington State Ferries, the Nation's 
largest ferry system, which is a transit system, a part of the 
Washington State highway system, and a vessel and terminal 
operator. We work with many Federal agencies, including the 
Federal Highway Administration, Federal Transit Administration, 
U.S. Maritime Administration, and U.S. Coast Guard. We value 
our Federal partnerships and want to thank the committee for 
the critical funding support that allows us to provide this 
critical service.
    I would like to share a graphic of our system.
    [Slide shown.]
    Ms. Rubstello. We transport nearly 24 million customers per 
year on 10 routes, served by a fleet of 21 vessels. We operate 
and maintain 20 terminals.
    We also have agreements with two counties, who provide 
passenger-only ferry service utilizing our facilities.
    Ridership on Washington State Ferries is expected to grow 
by 30 percent by 2040, climbing to nearly 32 million passengers 
a year.
    For western Washington, ferries play an important role in 
mobility, connecting urban areas with rural and affordable 
communities, and our islands that are completely dependent on 
our service. Often the ``drive-around'' option for many 
travelers means several hours on highways and local roads, 
compared to a relatively brief ferry trip. One of our busiest 
commuter routes, the ferry between Bainbridge Island and 
downtown Seattle, transports over 3 million walk-on passengers 
a year. Many of these customers connect to other forms of 
transit on each side of the water, reaching their destination 
without the use of single-occupant vehicles.
    While Federal funding, which comprises approximately 25 
percent of our capital and operating budget, has been critical 
to maintaining and operating our services and facilities, we 
need additional resources to preserve and modernize our aging 
fleet and infrastructure. Over the next 20 years, 13 of 
Washington's ferries will need to be replaced. Additionally, an 
increased number of relief or standby vessels are required to 
ensure reliable service. The estimated cost of all of this over 
the next 20 years is $14.6 billion. Dedicated State tax revenue 
and fare collection would cover $7.7 billion of these costs.
    Given that so many of our older diesel vessels are due for 
replacement in the near future, this is an opportune time to 
electrify our fleet. Washington State Ferries' diesel fuel 
consumption makes it the largest generator of carbon and other 
greenhouse gas emissions from Washington State government 
sources, so we are moving toward a zero-emission fleet. Our 
near-term plan is to convert our three largest vessels to 
hybrid electric. Their hybridization, coupled with installation 
of shoreside charging, will reduce fleetwide emission by 27 
percent, the equivalent of taking more than 10,000 cars off the 
road. We estimate the fully hybrid fleet would reduce our 
energy consumption by 30 percent, saving us $19 million per 
year in operating costs.
    I want to acknowledge and thank Congressman Larsen for his 
longstanding support of Washington State Ferries. In 
particular, his commitment to the ferry electrification. We are 
pleased to see electric ferry programs in both the INVEST Act 
and in the Infrastructure Investment and Jobs Act.
    Operating a ferry system has its challenges. The impact of 
the pandemic and the global shortage of mariners has led to 
extraordinary service challenges. At the lowest point of the 
pandemic, our ridership had fallen 75 percent, with walk-on 
riders down nearly 90 percent. As nearly 75 percent of our 
operating budget is derived from fares, our budget was 
significantly impacted.
    I want to thank Congress for the Federal relief funding we 
received via the FTA transit programs to help cover some of 
those operating losses. This funding ensured that we could 
maintain our critical services, including getting essential 
workers to their jobs and lifeline access to island 
communities.
    We are slowly seeing ridership increase. While some routes 
over the summer returned to pre-pandemic levels, others are 
still lagging.
    The pandemic also exacerbated workforce shortages. 
Retirements, limited training class size due to social 
distancing requirements, and global shortage of mariners has 
made hiring enough qualified staff even more difficult. We are 
working diligently to provide the right level of service, while 
constantly communicating with our customers about the impact.
    As the Nation's largest ferry system, we strive to be a 
leader for sustainable growth, reducing congestion on roads and 
embracing new, greener technologies while providing safe and 
reliable service. We appreciate and depend on Congress' support 
for this work.
    Thank you again for the honor and opportunity to testify 
today, and I am happy to answer any questions. Thank you.
    [Ms. Rubstello's prepared statement follows:]

                                 
   Prepared Statement of Patty Rubstello, P.E., Assistant Secretary, 
    Washington State Department of Transportation, Ferries Division
                              Introduction
    Chairman Norton, Ranking Member Davis, and distinguished members of 
the subcommittee, thank you for the opportunity to testify today to 
share information about the Washington State Ferries system. My name is 
Patty Rubstello, and I serve as Assistant Secretary of the Washington 
State Department of Transportation (WSDOT) leading the Ferries 
Division.
    WSDOT operates Washington State Ferries (WSF), the nation's largest 
ferry system, which is a transit system, a part of the Washington State 
highway system and a vessel and terminal operator. This affords us the 
opportunity to work with many federal agencies including the Federal 
Highway Administration, Federal Transit Administration, U.S. Maritime 
Administration, and the U.S. Coast Guard. We value our federal 
partnerships and want to thank the committee for the critical funding 
support we receive.
    We transport 23.9 million customers per year on 10 routes served by 
a fleet of 21 vessels. We operate and maintain 20 terminals. Ours is 
the second largest ferry system in the world for vehicles carried, 
transporting nearly 10.5 million vehicles in 2019. We provide service 
to both rural and urban areas, and we are a critical lifeline service 
to our San Juan Islands and Vashon Island communities, for which 
driving around is not an option. We also operate a popular 
international route to Vancouver Island in British Columbia. Our Eagle 
Harbor Maintenance Facility is the largest state-owned shipyard in the 
United States. Currently celebrating 70 years of service, Washington's 
ferries have become as iconic as the majestic waterways and landscapes 
they sail through. In addition, WSF has an impeccable safety record 
that makes the system a model for ferry operators around the globe.
    My remarks today will center around the following key points:
      An overview of the critical services we provide and the 
role we have in improving mobility.
      The continued need for strong federal support for public 
ferry systems.
      Our initiative to electrify our fleet to ensure system 
reliability.
      Current challenges including the effects of the COVID-19 
pandemic and workforce shortages.
    Washington State Ferries Overview and Role in Improving Mobility
    More than just a transportation system, the ferries mean many 
things to many people: a link in their multimodal journey connecting 
regional transit systems; a connection to work or school; a popular 
attraction for visitors and connection to recreation; a mainland 
connection for island communities; and a fundamental link for freight 
mobility and economic prosperity. The ferry system is both a critical 
component of the state highway system and the third largest transit 
system in Washington state. In 2019, WSF published its Long-Range Plan 
reflecting the extensive and robust engagement of more than 7,000 ferry 
riders, community members, tribes, government agencies and officials, 
businesses, transit partners and others. It serves as a blueprint to 
guide our investments and service for the next 20 years while 
considering the changing needs of ferry system users and associated 
funding opportunities and challenges.
    Ridership on WSF is expected to grow more than 30 percent by 2040, 
climbing to nearly 32 million passengers a year. Our traditional 
weekday commute patterns and demographics are changing (even before the 
COVID-19 pandemic dramatically shifted ridership patterns and volumes), 
recreational and other discretionary trips are increasing, and an aging 
population requires more special transportation services. The heart of 
our service lies in and around Puget Sound connecting communities to 
each other and to the city of Seattle, one of the fastest growing 
metropolitan areas in the nation.
    For Western Washington, ferries play an important role in reducing 
congestion, connecting urban communities on the east side of Puget 
Sound with the Olympic and Kitsap Peninsulas and island communities. 
The Central Puget Sound area, including Seattle, experiences some of 
the worst congestion in the United States. As the Seattle area grows 
and real estate prices soar, ferries play an essential role in 
connecting jobs in urban cores with more affordable housing outside the 
metro area without adding to cars on the road. Often, the ``drive-
around'' option for many travelers means several hours on highways and 
local roads compared to a relatively brief ferry trip. The cost to 
drivers of a single missed sailing ranges from $36-137 for each of 
WSF's routes based on distance and the amount of time it takes to drive 
around. In addition, we have agreements with two counties who provide 
passenger only ferry service utilizing our facilities. We partner with 
local passenger-only ferry operators and transit systems to adjust 
service when needed or to work together to provide mobility options for 
our customers.
    One of our busiest commuter routes, the ferry between Bainbridge 
Island and downtown Seattle, transports nearly 3.3 million walk-on 
passengers a year. During busy commute times, we routinely see 
thousands of walk-on customers on each sailing. Many of these customers 
connect to other forms of transit on each side of the water, connecting 
to their destinations without the use of single occupancy vehicles.
    WSF is also working to incorporate new technologies that will allow 
customers to access more up-to-date information about the ferry system 
and connect with the rest of the region's transportation network in 
innovative new ways. For example, many ferry customers already plan 
trips and pay for tickets via smartphone apps, regional fare programs 
and other tools, which allows them to make a more seamless door-to-door 
trip.
 The Continued Need for Strong Federal Support of Public Ferry Systems
    We greatly appreciate the federal support we receive for our ferry 
system. Approximately 25 percent of our capital and operating budget 
comes from federal sources. We depend on the FHWA Ferry Boat Program to 
support vessel preservation and terminal facilities and the FTA 
Passenger Ferry Grant Program for preserve our vessels. As the third 
largest transit provider in the state, we receive urban transit funding 
to support ferries operations. These funds are suballocated through the 
Puget Sound Regional Council, our state's largest Metropolitan Planning 
Organization.
    Federal formula and discretionary grant funds were critical for two 
major terminal projects. In 2020, WSF completed construction of a new 
replacement terminal at Mukilteo--our first new terminal in over 40 
years. Approximately 38 percent of funding for this $187 million 
project came from federal sources. The project embodies our commitment 
to addressing climate change and equity. WSF consulted with 11 
federally recognized tribes to design and construct the project in a 
way that was consistent with treaty reserved fishing rights and 
sensitive cultural resources in the project area. It was designed and 
built to LEED Gold standards, and removed an abandoned U.S. Air Force 
fueling pier comprised of over 4,000 creosote-soaked timber piles from 
Puget Sound. This project also improved multimodal connections to an 
adjacent transit center and commuter rail station.
    Our Seattle Multimodal Terminal at Colman Dock Project on the 
Seattle waterfront is replacing an aging and seismically-vulnerable 
dock in order to maintain its critical role as a regional multimodal 
transportation hub. Serving freight customers and passengers for 140 
years, the routes serving this terminal carry 10 million passengers and 
over 2.4 million vehicles annually. Approximately 52 percent of funding 
for this $438 million project comes from federal sources. Construction 
on this project is expected to be completed in 2023.
    While federal funding has been critical to maintaining and 
operating our services and facilities, we need additional resources to 
preserve and modernize our aging fleet and infrastructure. Over the 
next 20 years, WSF needs a coordinated set of investments in its fleet, 
terminal infrastructure, workforce and technology. In addition, WSF's 
retiring vessels should be replaced with those that are strategically 
designed to more easily accommodate growing ridership, with flexible 
passenger and car-deck space to better serve the particular demands of 
a route. A more efficient fleet needs to be supported by resilient 
terminals that support vessel charging infrastructure, enhanced 
technology for efficient fare collection, and better access to transit 
and other modes of transportation. The WSF workforce must be further 
strengthened with more active recruitment, development, and retention.
    Our needs are great. Over the next 20 years, 13 of Washington's 
ferries will need to be replaced. Additionally, an increased number of 
relief or ``standby'' vessels are required to ensure reliable service 
and adequate time for vessel maintenance and preservation to keep 
ferries operating for up to 50 and 60 years, depending on the condition 
of the vessel. In addition to the need for more relief vessels to 
ensure the fleet receives the maintenance time it needs, over half of 
the fleet will be retired over the next 20 years.
    The estimated cost of all of this over the next 20 years is $14.6 
billion. Dedicated state tax revenue and fare collection, which is 
projected to provide nearly 80 percent of WSF's operating costs in 
2040, would cover $7.7 billion of these costs. Our farebox recovery is 
remarkable when compared to the 20 to 30 percent recovery experienced 
by most transit operators. These investments are necessary to ensure 
system reliability and resilience, with the added benefit of increased 
operating efficiency.
         Electrification of the Washington State Ferries System
    WSF's diesel fuel consumption makes it the largest generator of 
carbon and other greenhouse gas emissions from Washington state 
government sources. According to the Puget Sound Clean Air Agency, 
diesel exhaust represents 78 percent of the potential cancer risk from 
all air toxics in Puget Sound. Diesel exhaust has also been linked to 
respiratory problems, cardiovascular problems, and premature death. We 
are working on several projects to meet the goals of Governor Jay 
Inslee's Executive Order 20-01, which directs WSF to move toward a zero 
emissions fleet.
    WSF is undertaking this ambitious initiative to electrify the 
system with plug-in hybrid-electric vessels and terminal enhancements 
to achieve reduced environmental impact and energy costs. We are 
focused on building a reliable fleet that has a lighter footprint on 
the environment and outperforms CO2 reduction targets. We estimate that 
a hybrid fleet would reduce our energy consumption by 30 percent, 
saving us $19 million per year in operations cost.
    In general, nearly every route within the WSF system can be served 
by a hybrid-electric vessel. The extent to which each vessel can 
maximize the advantage of its electric propulsion technology depends on 
a variety of elements, such as route length, vessel size and weight, 
amount of time spent at the dock to charge the vessel, and power 
availability at the terminal. Converting to a hybrid-electric 
propulsion fleet also takes advantage of Puget Sound's clean power 
sources including hydroelectric, wind and solar. When fully realized, 
we estimate reductions of 53 percent greenhouse gas emissions (CO2e) by 
2030, and 76 percent by 2040, from baseline 2005 emissions levels.
    This initiative comes at an opportune time given that many of our 
older diesel vessels are due for replacement in the near future. While 
the complete conversion to a hybrid-electric fleet will take some time, 
the benefits will be seen almost immediately with the planned retrofit 
and upgrade of WSF's three Jumbo Mark II Class vessels. These ferries, 
which each carry 202 vehicles, are the largest source of emissions in 
the fleet. Their hybridization will reduce fleet-wide emissions by 27 
percent once shore charging is available and will reduce carbon 
emissions by 48,565 metric tons/year--the equivalent of taking more 
than 10,000 cars off the road. In addition, we are beginning 
construction early in 2022 on our first new build hybrid-electric 
Olympic Class ferry and it's expected to enter service in 2025.
    To fully realize and meet emission reduction targets, terminal 
charging infrastructure must be in place. This improvement is required 
at nearly every one of WSF's 20 terminals, representing $280 million of 
total capital investment over the next 20 years. We have a near-term 
plan for terminal electrification capital improvements at three 
priority terminals at an estimated cost of $50.2 million.
    I want to acknowledge and thank Congressman Larsen for his 
longstanding support for Washington State Ferries and in particular his 
commitment to ferry electrification. We were pleased to see Electric 
Ferry Programs in both the INVEST Act and the Infrastructure 
Investments and Jobs Act. The electrification of Washington's ferry 
system is an ambitious plan with the opportunity for dramatic emissions 
reductions and the potential to exercise leadership within the greater 
maritime industry.
  Challenges Resulting From COVID-19 Pandemic and Workforce Shortages
    The impacts of the COVID-19 pandemic and a global shortage of 
mariners has led to extraordinary service challenges at Washington 
State Ferries. At the lowest point in the pandemic, in March 2020, 
total ridership had fallen 75 percent compared to the last week of 
February 2020. Vehicle ridership fell by 63 percent, with walk-on 
passenger ridership falling by 90 percent. Given that nearly 75 percent 
of our operating budget is derived from fares, our budget was 
significantly impacted. For example, total farebox revenue in March and 
April 2020 was approximately $14M, just half of what was forecast to be 
collected. (Farebox revenue for the same time period in 2019 was $29M.) 
WSF tried to mitigate the budget impacts by offering reduced service. I 
want to thank Congress for the federal relief funding we received, via 
the FTA transit programs, to help cover some of our operating losses. 
This funding ensured that we could maintain our essential services--
including getting essential workers to their jobs and lifeline access 
to island communities. We are slowly seeing ridership increase. While 
some routes over the summer returned to pre-pandemic levels, others are 
still lagging.
    As businesses and operators across the country are experiencing, 
COVID-19 safety restrictions impacted WSF's ability to conduct vessel 
maintenance and preservation work. At the beginning of the pandemic, 
all work was suspended as state and private shipyard employees were 
directed to work from home. We continue to experience supply chain 
interruptions affecting vessel parts and equipment. As guidelines 
changed and supply lines improved, WSF reorganized its state-owned 
Eagle Harbor Maintenance Facility to allow it to reopen in April 2020 
and worked with shipyard contractors to allow work to resume on vessels 
in their yards.
    The pandemic also exacerbated workforce shortages. All WSF vessels 
are crewed by maritime professionals credentialed by the U.S. Coast 
Guard. The WSF workforce is experiencing the same pressures felt by 
other employers nationwide, as a wave of people born during the post-
World War II population boom start to retire. As of January 2019, 
slightly more than 30 percent of the vessel workforce, 37 percent of 
the terminal workforce, and 24 percent of the Eagle Harbor maintenance 
facility staff were eligible for retirement within the next five years. 
Hiring enough qualified deck officers presents a challenge. Earning a 
Master's license requires many years of training, testing and 
preparation, including piloting 16 round trips on each of WSF's 10 
routes and successfully drawing pilotage maps from memory during 
testing. Most of this work must be accomplished on an employee's own 
time. Approximately 75 percent of WSF's Masters and Staff Masters will 
be retirement-eligible in the next five years. Retirements due to the 
pandemic, limited training class sizes due to COVID social distancing 
requirements, and a global shortage of mariners has made hiring enough 
qualified staff even more difficult.
    The continued spread of COVID-19 in Washington state results in 
ongoing staff absences due to positive COVID-19 cases and quarantine 
requirements. For example, on a recent weekend, we had dozens of staff 
out with COVID-19 related issues--whether active cases, in quarantine, 
or receiving vaccinations. Over two days, we had 85 cancelled sailings 
systemwide due to 41 employees calling out sick. Canceled sailings have 
far-reaching impacts for customers that rely on ferry service to reach 
island communities and connect to parts of Washington state where the 
detour option often means hours of highway driving, added road miles 
and delays to freight mobility.
    We have increased our recruitment and workforce development efforts 
and are embarking on a systemwide service reset to determine what 
levels of service we're able to provide with the resources available. 
Sailing schedules continue to be reduced and our messaging to customers 
about cancellations and disruptions has significantly increased in 
recent months.
                               Conclusion
    As the nation's largest ferry system, we strive to be a leader for 
sustainable growth, reducing congestion on roads and embracing new, 
greener technologies while providing safe and reliable service. But, 
like much of America's aging infrastructure, the preservation and 
maintenance needs are significant to address aging vessels and 
terminals and to maintain reliable ferry service for those that depend 
upon it. We appreciate and depend on Congress' support as we continue 
our systemwide electrification efforts to reduce carbon emissions, 
preserve our fleet and terminals, and increase workforce recruitment 
and development to become an employer of choice. We hope we can serve 
as a leader for ferry systems across the U.S. and around the world, 
providing an example for other jurisdictions to use as they consider 
ferries as an alternative to land-side congestion.
    Thank you again for the honor and opportunity to testify today, and 
I am happy to answer any questions.





    Ms. Norton. Thank you, Ms. Rubstello.
    Next, Mr. Seamus Murphy.
    Mr. Murphy. Thank you, Chair Norton, Ranking Member Davis, 
and members of the subcommittee. I am Seamus Murphy, executive 
director of the San Francisco Bay Area Water Emergency 
Transportation Authority. Thank you for the opportunity to 
speak about San Francisco Bay Ferry service, our efforts to 
recover from the pandemic, plans for expansion, and our 
transition to zero-emissions technology.
    WETA is a regional public transit agency in the bay area 
that carries over 3 million passengers a year aboard 15 high-
speed passenger-only ferry vessels. Prior to the pandemic, San 
Francisco Bay Ferry was the region's fastest growing transit 
service. Between 2013 and 2019, demand for ferry service 
increased over 160 percent, including 35 percent growth from 
2019 to 2020.
    Of course, like every other travel mode, all of that 
changed with COVID. WETA's ridership is historically commute-
based, and most of them were able to transition immediately to 
remote work. Ridership initially dropped by 98 percent and 
remained between 7 percent and 12 percent of pre-COVID levels 
for the next 16 months. WETA reduced service to reflect that 
demand, but the system is highly fare dependent, so our ability 
to maintain even a minimum service level for essential workers 
is extremely limited.
    Thankfully, Congress took action. On behalf of our riders, 
deckhands, pilots, and countless Americans who depended on 
essential workers to get us through the darkest days of the 
pandemic, thank you for everything Congress did to maintain 
transit as an essential service. Without that support, 
thousands of nurses, teachers, grocery clerks, construction 
workers, and others not able to work from home would have been 
stranded without a mobility option.
    We used funding from those programs to invest in saving 
jobs, preserving services, and protecting the most vulnerable 
members of our communities. We are incredibly grateful. Thanks 
to these funds, in July, WETA became the first regional system 
in the bay area to fully restore service. In addition to 
relaunching service, we also lowered fares to align with other 
transit modes, and we shifted more service to the off peak to 
accommodate the needs of lower income, transit-dependent 
workers.
    After implementing these changes, WETA ridership nearly 
doubled overnight, and it significantly outpaced other regional 
carriers. Congestion has fully returned to regional highways, 
and based on job and population growth in the area, there is a 
high likelihood that our system will eventually return to the 
level of growth we saw pre-COVID.
    Before the pandemic, we were working with communities 
throughout the region to aggressively plan for expansion. As 
congestion has returned, communities are once again calling for 
more service. New neighborhoods are rapidly emerging along the 
bayfront. These are vibrant population and job centers with 
extremely congested access via surface streets. Water-based 
transit will be critical.
    Our expansion plans will ensure that these emerging 
economic centers are connected, reducing regional congestion, 
and providing people of all income levels with access to jobs, 
healthcare, entertainment, and other opportunities.
    As we prepare to grow, we are also advancing plans to grow 
sustainably, with an eye towards reducing greenhouse gas 
emissions. WETA has always been an environmental leader in 
developing clean vessel technology. From the beginning, WETA 
pushed for new diesel engine technology that exceeded EPA 
standards, but we believe we can go even further. With that in 
mind, WETA is developing plans that will transition about 50 
percent of our fleet to zero emissions.
    The cost of these improvements is being evaluated. We know 
that, aside from the cost of the vessels themselves, 
significant investment will be needed to equip our terminals 
with shoreside charging infrastructure that supports a high-
volume, high-frequency system.
    All of these objectives--making ferry service more 
accessible, expanding our service to other parts of the bay, 
and converting our fleet to zero emissions--will require new 
investment. Our agency has access to local, regional, and State 
matching funds, but a robust Federal program is essential. The 
current level of funding available through the FTA program that 
supports ferries pales in comparison to the needs that exist 
around the country, let alone in the bay area.
    This committee has long recognized this, and we have 
appreciated the committee's leadership on making more funding 
available for public ferry systems. There was bipartisan 
support for increasing the level of funding for the FTA program 
to $1.25 billion over 5 years, as a part of the infrastructure 
bill in the Senate. That funding increase was set to be added 
to the bill before it was rushed out of the Senate.
    That level of investment would provide the resources needed 
to support this essential mode of transit around the country, 
and it would allow us at WETA to fulfill a very ambitious and 
necessary set of plans for growing ferry service in a 
sustainable way. We encourage you to find a way to add that 
funding to the program moving forward. Doing so will allow us 
to meet the goals that we know are shared by so many on this 
committee.
    Again, thank you for the opportunity to testify before you 
today. I look forward to answering any questions you may have.
    [Mr. Murphy's prepared statement follows:]

                                 
Prepared Statement of Seamus Murphy, Executive Director, San Francisco 
        Bay Area Water Emergency Transportation Authority (WETA)
    Thank you Chair Norton, Ranking Member Davis, and members of the 
Subcommittee for the opportunity to speak about San Francisco Bay Ferry 
service, our efforts to recover from the pandemic, our plans for 
expansion, and our transition to zero emission technology.
    WETA is a regional public transit agency that carries over three 
million passengers annually utilizing a fleet of 15 high-speed 
passenger-only ferry vessels. San Francisco Bay Ferry currently serves 
the cities of Alameda, Oakland, Richmond, San Francisco, South San 
Francisco, and Vallejo \1\.
---------------------------------------------------------------------------
    \1\ See attached ferry route map.
---------------------------------------------------------------------------
    Prior to the pandemic, WETA's system was the Bay Area's fastest 
growing transit service. Between 2013 and 2019, demand for ferry 
service increased over 160 percent, or an average of 23 percent every 
year. In the year before the pandemic, ridership increased a whopping 
35 percent. In response to this surging demand, and in anticipation of 
future demand growth, we added seven new high capacity (400-445 
passenger) vessels to our fleet, and we currently have four additional 
vessels under construction.
    Of course, like every other travel mode, all of that changed during 
the pandemic. WETA's historic ridership is commute-based, and almost 
all these riders were able to transition immediately to remote work. 
Ridership initially dropped by 98 percent and remained between 7 
percent-12 percent of pre-covid levels for the next 16 months. WETA 
immediately reduced service to the minimum level needed to maintain a 
travel option for essential workers.
    Before the pandemic, 60 percent of WETA's operating costs were 
covered by fares. In the transportation space, that is very high, and 
it was a point of pride for the agency. But as a fare dependent system, 
WETA's ability to maintain even a minimum service level in the face of 
dramatic ridership decline is extremely limited. Thankfully, Congress 
took action.
    On behalf of our riders, workers, deck-hands, pilots, and the 
countless Americans who depended on essential workers to get us through 
the darkest days of the pandemic, thank you for everything Congress did 
to maintain transit as an essential service. Without the support 
provided in the Coronavirus Aid, Relief, and Economic Security (CARES) 
Act, the Coronavirus Response and Relief Supplemental Appropriations 
Act (CRRSAA) and the American Recovery Plan Act (ARPA), thousands of 
nurses, teachers, grocery clerks, construction workers, and others not 
able to work from home would have been stranded without a viable 
mobility option. We used funding from those programs to invest in 
saving jobs, preserving services, and protecting the most vulnerable 
members of our communities. We are incredibly grateful.
    These funds are now being invested in expediting regional recovery. 
COVID relief funds have helped WETA become the first Bay Area transit 
system to fully restore service. WETA began implementing a Pandemic 
Recovery Program in July. The Program is a year-long series of fare and 
service changes focused on incentivizing ridership; testing the market 
for new travel patterns; and maximizing the relevance of our service 
for a new, more equitable post-pandemic ridership base.
    So far, the Program is yielding very positive results. Before the 
pandemic, riders paid a premium for ferry travel. Customer satisfaction 
ratings were at 95 percent. Boats operated at maximum capacity. The 
higher fares reflected the high demand. But WETA operates service to 
some of the Bay Area's most disadvantaged communities, and as a public 
transit operator, price should not be a factor in riders' decision 
about which mode to choose. Through our Pandemic Recovery Program, WETA 
was able to lower fares and align those fares with other transit modes. 
We also added a significant amount of off-peak service to accommodate 
the needs of lower-income, transit-dependent workers who could not work 
from home and who did not follow traditional commute patterns.

----------------------------------------------------------------------------------------------------------------
                                                         Allocated by MTC/
                                                                Rcvd             Expended           Balance
----------------------------------------------------------------------------------------------------------------
CARES Act..............................................         18,756,857         18,756,857                  -
CRRSAA.................................................         18,353,738            914,492         17,439,246
ARPA...................................................         14,133,854                  -         14,133,854
                                                        --------------------------------------------------------
  Total................................................         51,244,449         19,671,349         31,573,100
----------------------------------------------------------------------------------------------------------------

    After implementing these changes, WETA ridership nearly doubled 
overnight. Systemwide ridership is approaching 40 percent of pre-
pandemic levels and weekend ridership is over 60 percent of pre-
pandemic levels. The off-peak service that we thought might attract new 
riders has proven to be very popular. While ridership on WETA services 
during the beginning of 2021 was consistent with other regional 
systems, since we made our July changes, WETA's ridership has 
significantly outpaced other regional carriers.
    We are well ahead of our fiscal year ridership projections. 
Congestion has fully returned to regional highways and based on job and 
population growth in the area, there is a high likelihood that our 
system will eventually return to the level of growth we saw pre-COVID. 
Before the pandemic, we were working with communities throughout the 
region to aggressively plan for expanded ferry service. While those 
plans are being updated to reflect post-pandemic realities, the fact is 
that we need to prepare for future increases in ridership.
    New neighborhoods are rapidly emerging along the San Francisco 
bayfront. These are vibrant population and job centers with extremely 
congested access via surface streets. Alternative transportation 
options will be critical. Fortunately, plans are in place to build 
ferry infrastructure that will make water transit a major travel mode 
for thousands of new workers and residents. Our expansion plans will 
ensure that these emerging economic centers are connected to our 
current system, providing people of all income levels living throughout 
the Bay Area with access to jobs, health care, entertainment and other 
opportunities.
    In addition to accounting for connectivity and accessibility, our 
expansion plans are aimed at reducing congestion in the region. To that 
end, new, congestion-reducing routes are planned for Berkeley and 
Redwood City. Additional new markets for ferry expansion are being 
created as population shifts from the urban core to outlying areas in 
the North Bay and East Bay subregions.
    As we prepare to grow, we are also advancing plans to grow 
sustainably, and with an eye toward reducing greenhouse gas emissions. 
WETA has always been an environmental leader in developing clean vessel 
technology. From the beginning, WETA pushed for the development and 
implementation of new diesel engine technology that exceeded 
Environmental Protection Agency's (EPA) standards, proving to the 
industry that increasingly stringent Federal emissions requirements 
were achievable. WETA's newest vessels are the first passenger vessels 
in the country to achieve EPA's Tier 4 emissions standards. We are 
proud of the fact that these vessels will reduce an estimated 10 tons 
of GhG emissions annually.
    But we believe we can go even further. With that in mind, WETA is 
continuing our focus on emission reductions with plans that would 
transition about 50 percent of our fleet to zero emissions. The cost of 
these improvements is being evaluated. We know that aside from the cost 
of the vessels themselves, significant investment will be needed to 
equip our terminals with shoreside charging infrastructure to support a 
high-volume, high-frequency system.
    All these objectives: making ferry service more accessible, 
expanding our service to other parts of the Bay Area, and converting 
our fleet to zero emission, will require new investment. Our agency has 
access to local, regional and state matching funds, but a robust 
federal program is essential.
    The current level of funding available through the FTA 5307(h) 
program that supports ferries pales in comparison to the needs that 
exist around the country, let alone in the Bay Area. This committee has 
long recognized this, and we have much appreciated the committee's 
leadership on trying to make more funding available for public ferry 
systems. The 2020 MOVING Forward Act and this year's INVEST in America 
Act both boosted funding for the FTA program.
    There was bi-partisan support for increasing the level of funding 
for the FTA program to $1.25 billion over 5 years as part of the 
bipartisan infrastructure bill in the Senate, and this funding increase 
was set to be added to the bipartisan infrastructure bill before it was 
rushed out of the Senate. That level of investment would provide the 
resources needed to support this essential mode of transit around the 
country, and allow WETA to fulfill a very ambitious, albeit necessary, 
set of plans to grow ferry service in the Bay Area in a sustainable 
way. We encourage you to find a way to add that funding to the program 
moving forward, thereby ensuring that adequate resources are available 
to meet the goals we know are shared by so many on this committee.
    Again, thank you for the opportunity to testify before you today. I 
look forward to any questions you may have.
                         ATTACHMENT--Route Map
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    Ms. Norton. Thank you for your testimony, Mr. Murphy.
    Next, the Honorable Frank Principi.
    Mr. Principi. Good morning, Madam Chairman, Ranking Member, 
and members of the committee. My name is Frank Principi, and I 
am a former local elected official from Prince William County, 
Virginia, and serve as the chairman of the Northern Virginia 
Regional Commission's M-495 Fast Ferry Stakeholder Group.
    The NVRC is a regional planning council of 13 local 
governments in the northern Virginia suburbs of Washington, DC. 
And the Fast Ferry Stakeholder Group is comprised of more than 
60 public, private, and military organizations that have come 
together to support the launch of fast ferry service in the 
national capital region.
    Today, people in this region waste an average of 102 hours 
stuck in traffic annually, translating into $4.6 billion in 
lost time and fuel.
    Our transit services in this region are time- and place-
limited and/or at capacity. Diversification is key to improving 
mobility in this region. The ability to move goods and people 
at relatively low cost represents a substantial benefit for 
both our economy and our quality of life.
    Our vision is to provide safe, reliable, and efficient 
passenger ferry transit service on the Occoquan, Potomac, and 
Anacostia Rivers. These waterways, designated as the ``M-495 
Marine Highway'' by MARAD, will meet the needs of residents, 
tourists, and small freight. The system would be supported with 
a local commercial vessel maintenance and repair facility, as 
well. Rider amenities will be substantial, and passenger fares 
are expected to be competitive with existing transit service, 
and less than the cost of our toll lanes.
    The envisioned service will serve both the north-south and 
cross-river commutes, with a fleet of 149 passenger vessels. 
The service will enhance fairness in mobility and will provide 
critical transportation links for areas currently underserved 
by transit to connect residents to new job centers. The service 
will include destinations in Virginia, like the Pentagon, 
National Airport, and Amazon HQ2 at National Landing; and in 
Maryland at Indian Head, National Harbor, and MGM Grand Hotel; 
and in the District of Columbia at Joint Base Anacostia 
Bolling, the new headquarters for the Department of Homeland 
Security, the Wharf, and, in the future, Poplar Point.
    At full development, our system could provide mobility for 
10,000 daily regional trips with shorter travel times. Given 
the significant and growing waterfront population densities and 
recent efforts to provide customers with near real-time package 
delivery, the service has the potential to improve freight 
mobility, and provide revenues to support passenger service.
    The fleet of vessels could also provide the region with 
expanded emergency management capacity, including water rescues 
and evacuations.
    We estimate primary job creation in the range of 100 to 200 
jobs, initially.
    The stakeholder group has endorsed the principle that the 
construction and operation of this new transit service should 
be conducted through a public-private military partnership. All 
partners would be expected to help finance the startup costs 
and participate in the governance structure. It is important to 
include the military, as their personnel make up 24 percent of 
our daily commuters in this region.
    Starting this new service requires substantial upfront 
investment. Despite our best efforts, the $17 million of 
Federal funds that were in the pipeline for this project have 
not materialized. We are asking the committee to reconsider our 
$13 million earmark request sponsored by Madam Chair. The 
stakeholder group was willing to finance a 40-percent match of 
this amount, and our FTA grant of $4.2 million was awarded and 
later rescinded. This amount, together with an operating 
subsidy that was authorized in H.R. 2, would have enabled us to 
launch.
    Given that the M-495 fast ferry service would 
quantitatively improve our throughput and provide long-term 
congestion relief, ferry service would be a great example of 
building back better here, in the national capital region.
    Thank you again for your continued leadership on our 
country's infrastructure needs. I respectfully ask the 
committee to consider support of M-495. Thank you.
    [Mr. Principi's prepared statement follows:]

                                 
  Prepared Statement of Hon. Frank J. Principi, Chairman, M-495 Fast 
     Ferry Stakeholder Group, Northern Virginia Regional Commission
                            I. Introduction
    Good morning, Chairman, Ranking Member, and Members of the 
Committee. My name is Frank J. Principi. I am a former local elected 
official from Prince William County, Virginia and serve as the Chairman 
of the Northern Virginia Regional Commission's M-495 Fast Ferry 
Stakeholder Group. The Northern Virginia Regional Commission (NVRC) is 
a regional planning council of thirteen local governments in the 
Northern Virginia suburbs of Washington, DC. The Fast Ferry Stakeholder 
Group is comprised of 60+ public, private, and military organizations 
that support the launch of fast ferry transit service in the National 
Capital Region.
    I'd like to take this opportunity to thank the Chairman and Ranking 
Member for their leadership in these policy and budget matters and 
conducting this hearing. I would also like to thank Madam Chairman 
Norton on her continued support and leadership of our efforts.
              II. Mobility in The National Capital Region
    Today people in the National Capital Region waste an average of 102 
hours stuck in traffic, translating into $4.6 billion in lost time and 
fuel. I would add that we have some of the most reliably, unreliable 
commutes in the nation. While we have a transit system, we are proud of 
in the region, transit services are often time or place limited and/or 
at capacity. Diversification is key to improving mobility in the 
region. The ability to move goods and people at relatively low cost 
represents a substantial benefit for both our economy and our quality 
of life.
                              III. Vision
    Our vision is to provide safe, reliable, and efficient passenger 
ferry vessel transit service on the Occoquan, Potomac, and Anacostia 
Rivers. These waterways were designated as the ``M-495 Marine Highway'' 
by the US Department of Transportation's Maritime Administration. The 
service is intended to meet the needs of residents, tourists, and small 
freight. The system would be supported with a local commercial vessel 
maintenance and repair facility.
    Rider amenities will be substantial and passenger fares are 
expected to be competitive with existing transit and toll lanes in the 
region. The envisioned service will serve both the north-south and 
cross-river commutes with a fleet of 149 passenger vessels to provide 
links connecting residents to work, medical appointments, school, 
shopping, and tourist destinations. The service will enhance fairness 
in mobility and will provide critical transportation links for areas 
currently underserved by transit to connect people directly to job 
centers. Service focal points include locations in Virginia (Prince 
William County, Fort Belvoir, Pentagon, National Airport, National 
Landing); Maryland (Indian Head, National Harbor and MGM Grand Hotel) 
and the District of Columbia (Joint Base Anacostia Bolling, Department 
of Homeland Security, Wharf, Poplar Point). At full development, the 
system could provide mobility to accommodate about 10,000 daily 
regional trips.
    Given the significant and growing waterfront population densities 
and recent efforts to provide customers with near real-time package 
deliveries, the service has the potential to improve freight mobility 
and provide revenue to support passenger service. The fleet of vessels 
could also provide the region with expanded emergency management.
    The ferry system will support job creation and job training 
opportunities and be a source of revenue creation for the three states 
and local governments. Once the system is launched, it will provide 
substantial labor income from direct, indirect, and induced jobs as 
well as opportunities for job training in maritime skills that are in 
high demand nationally. We estimate primary job creation in a range of 
100 to 200 jobs, with the ability to offer training opportunities on an 
on-going basis.
                IV. Public-Private-Military Partnership
    The Stakeholder Group has endorsed the principle that the 
construction and operation of this new transit service should be 
conducted through a public-private-military partnership. All partners 
would be expected to help finance the initial start-up costs--capital 
and operating expenses--and participate in the governance structure. 
While the military is challenged to finance off-site transportation 
projects, their personnel make-up 24 percent of daily commuters in this 
region and these federal facilities would contribute through adaptation 
of existing shuttle bus services as well as technical support for 
installation of ferry terminals at military installations.
                         V. Request To Congress
    Starting this new service requires substantial up-front investment. 
Despite our best efforts we have had up to $17 million in federal grant 
funds in the pipeline but have not been able to finalize any of those 
grants or that level of funding.
    We are asking Congress to consider a $13 million earmark for the M-
495. Congresswoman Norton earlier sponsored an earmark request in that 
amount, but it was not awarded. The Stakeholder Group has been willing 
to create up to a 40 percent match. The earmark and the local match, 
together with a time-limited operating subsidy--something included in 
the House version of the infrastructure bill--would provide the upfront 
financial ``bow wave'' and allow us to launch this regional service.
    We also request that the final version of the infrastructure bill 
include the House provision entitled, ``Projects of National and 
Regional Significance,'' projects that cannot be funded through annual 
apportionments or other discretionary sources. Given that the M-495 
fast ferry transit service would quantitatively improve throughput and 
provide long-term congestion relief this ferry service would be a great 
example of ``building back better.''
                             VI. Conclusion
    Thank you again for your continued leadership on our country's 
infrastructure needs and respectfully ask the Committee consider 
support of the M-495 Fast Ferry Service. I would be pleased to take any 
questions.

    Ms. Norton. Thank you, Mr. Principi.
    Finally, we will hear from Mr. Kyle Godar.
    Mr. Godar. Hello, and I would like to thank the committee 
for the opportunity to testify today, to represent my 
community, the surrounding region, and similar communities 
across the country.
    As you said, my name is Kyle Godar, and I am the county 
engineer for Calhoun County, Illinois. As a county engineer, I 
manage the county highway department, as well as the county 
unit road district. I oversee 300 miles of roadway, including 
two ferry terminals.
    Calhoun County's unique geographical location between the 
Mississippi River and the Illinois River at the confluence of 
the rivers leaves the county nearly surrounded by water. 
Calhoun County lies between Alton, Illinois, which is part of 
the St. Louis metropolitan area, and Louisiana, Missouri. This 
is an 80-mile section of the Mississippi River without a bridge 
crossing to the west, and with the Illinois River to the east. 
The surrounding area relies on four ferry operations to provide 
mobility through the region.
    Although Calhoun County is in very close proximity to the 
St. Louis metro area, it remains a rural community because it 
is isolated by the rivers from the urban sprawl and expansion 
of the metro area. This barrier between urban and rural 
communities that the river creates has historically provided a 
natural barrier, which has preserved the entire area's natural 
resources and historic sites. This has protected the area's 20 
wildlife management areas, 18 public access areas, 40,000 acres 
of protected enhanced wildlife habitat managed by Pere 
Marquette State Park, Two Rivers National Wildlife Refuge, and 
the Mississippi River State Fish and Wildlife Area, in addition 
to the area encompassed by the rivers themselves, and all of 
the privately owned farms, orchards, and wineries that provide 
locally grown produce to the metro area.
    The four ferries that operate at Grafton, Golden Eagle, 
Brussels, and Kampsville provide the connection that allows 
those from the metropolitan area to visit, enjoy, and learn 
about the natural resources in the area. The four ferries not 
only serve to support tourism, but the majority of the 
passengers carried by the ferries are commuters who utilize the 
ferry system to drastically reduce the number of miles traveled 
during their commute. At the Golden Eagle location alone, 
nearly 600 riders each day are commuters.
    By utilizing the ferry, these commuters are able to reduce 
their commute from a one-way, 80-mile trip on some of the most 
congested roads in the area, to a 30-mile average trip across 
some of the least-traveled roads in the area. Using ferries 
greatly reduces the congestion and the miles traveled. The 
Golden Eagle Ferry alone results in an annual reduction of 
nearly 8 million miles traveled.
    Two of the ferries have also been repowered by CMAQ funds, 
helping reduce emissions.
    And although the topic of the hearing is mobility, I think 
it is important to understand the life, health, and safety 
needs that the ferries provide, as well. Access to healthcare 
is an intrinsic need, and is only accessible to some by way of 
ferry. The absence of reliable ferry service could deny 
residents in this area life needs, even access to food at 
times.
    All four of the ferry services in Calhoun County have had 
funding made available through allocation through the Ferry 
Boat Program. Unfortunately, guidance provided by FHWA, and 
some of the eligibility requirements associated with those 
funds, has rendered the county unable to use the funds as 
needed. Specifically, in one case, the ineligibility of 
``approach roadways'' becomes a major issue for us.
    Given the wide range of ferry service characteristics and 
ownership structures that exist, a one-size-fits-all approach 
to the ferry boat funding guidance has resulted in many ferry 
services allowing allotted funds to expire, including ours. 
Eliminating some of these eligibility issues, especially when 
associated with, for instance, the one-time discretionary funds 
that I believe are included in the current Senate bill, would 
help secure public ownership of associated facilities, and 
secure public control of these facilities would greatly improve 
the reliability of the ferry service and the Federal-aid system 
of highways.
    I thank you again for the opportunity to bring these issues 
to your attention, and I am open to answering any questions you 
may have.
    [Mr. Godar's prepared statement follows:]

                                 
  Prepared Statement of Kyle Godar, County Engineer, Calhoun County, 
                                Illinois
    Chairman DeFazio, Ranking Member Graves, Chair Norton, and Ranking 
Member Davis:
    I would like to thank you for the opportunity to testify before the 
subcommittee. I am honored to represent my community, the surrounding 
region and similar communities across the Country as the Committee 
Examines the Vital Role Ferries play in not only Improving Mobility but 
also providing access to essential services for many communities 
similar to my own.
    My name is Kyle Godar and I am the County Engineer for Calhoun 
County, Illinois. As the County Engineer I manage the County Highway 
Department as well as the County Unit Road District and oversee 
approximately 300 miles of roadway. Calhoun County's unique 
geographical location between the Mississippi River and the Illinois 
River at the confluence of the great rivers leaves the county nearly 
surrounded by water. Calhoun County lies along the Mississippi River 
between Alton, Illinois (part of the St. Louis Metropolitan area) and 
Louisiana, Missouri. With this over 80-mile section of the Mississippi 
River without a bridge crossing to the West and the Illinois River to 
the East, Calhoun County and the surrounding area is reliant on four 
ferry operations to provide mobility through the region.
    Although Calhoun County is in very close proximity to the St. Louis 
Metropolitan area it remains a very rural community isolated from the 
urban sprawl and expansion of the Metropolitan area by the Great 
Rivers. Over 120 years ago Calhoun County earned the nick name the 
``Apple Kingdom'' as much of the County was covered with orchards that 
supplied locally raised produce to the St. Louis area. Over 100 years 
later the County still embraces that name as the ferries carry many 
visitors from the St. Louis area across the Great Rivers to visit the 
many orchards and farms that provide locally grown produce to the area. 
The barrier between the urban and rural communities that the Great 
Rivers create has coincidentally provided a natural barrier which has 
preserved the entire areas natural resources and historical sites. The 
unique geographic characteristics of the area have provided the perfect 
setting for the 20 wildlife management areas, 18 public access areas, 
and over 40,000 acres of protected and enhanced wildlife habitat 
actively managed as part of Pere Marquette State Park, Two Rivers 
National Wildlife Refuge, and the Mississippi River State Fish and 
Wildlife Area. This all, in addition to the area encompassed by the 
Rivers themselves, as well as the privately owned farms, orchards, and 
wineries in the area. The four ferries that operate at Grafton, Golden 
Eagle, Brussels, and Kampsville provide the connection that allows 
those from the Metropolitan area to visit, enjoy, and learn about these 
natural resources. Due to its proximity to the Metropolitan area the 
Two Rivers National Wildlife Refuge earns its designation as an Urban 
Wildlife Refuge and as such is frequented by school bus loads of 
children, at times multiple school groups a day get the chance to cross 
the river on the ferries and come learn about the wildlife and natural 
resources preserved in this area. Many of the ferries across the 
country provide this same type of connection to national parks, 
historical preservation areas, and the great outdoors.
    The four ferries that operate in Calhoun County and the surrounding 
area not only serve to support tourism and transport visitors to the 
area, but the majority of the passengers carried by the ferries are 
commuters who utilize the ferry system to drastically reduce the number 
of miles traveled by automobile, as those living in the rural areas 
make their daily commute to the Metropolitan area. The ferries also 
reduce the miles traveled by freight carriers. During harvest farmers 
in the region transport grain across the ferries to port facilities in 
the Metropolitan area. Without the ferries, marketing grain at these 
port facilities would not be an option for the area farmers. At the 
Golden Eagle location alone nearly 600 riders each day are commuters. 
By utilizing the ferry these commuters are able to change their route 
from a one-way, 80 mile average trip across some of the most congested 
routes in the Metro area to a 30 mile average trip across some of the 
least traveled routes in the area. As such, these ferries greatly 
reduce congestion and the miles traveled by these commuters. Based on 
the numbers provided above the Golden Eagle Ferry operation results in 
an annual reduction of nearly 8,000,000 miles traveled by commuters 
alone.
    Although the topic of this hearing is ``Mobility,'' the important 
role that of the Nation's ferry system plays as it relates to life, 
health, and safety needs to be understood. Access to health care is an 
intrinsic need that is only accessible to some by way of ferry. The 
residents of Calhoun County, Illinois, being a medically underserved 
area, are reliant on the ferry system to access basic health care. 
Without the Golden Eagle Ferry in operation, for example, the distance 
traveled to receive basic health care at times could be increased by 50 
miles. When these ferries are not in operation during emergent 
situations, essential services such as ambulatory evacuation are only 
available by helicopter air transport. The absence of reliable ferry 
service could deny many residents basic life needs and access to food. 
This happens during times of major flooding such as during the spring 
and summer of 2019. During that time many residents simply had to 
relocate and move to temporary housing outside of the area.
    The Ferry Boat Program (FBP) authorized under Title 23, United 
States Code (U.S.C.), Sections 129(c) and 147 has provided a funding 
source that provides assistance to many of these ferry boat operations. 
All four of the Ferries servicing Calhoun County have had funding made 
available for allocation through the Ferry Boat Program. Unfortunately, 
guidance provided by FHWA and some of the eligibility requirements 
associated with the FBP funds has rendered Calhoun County unable to use 
the funds as needed. The ownership characteristics of these ferry 
operations vary widely as most of the ferry operation in our area began 
as privately owned operations in the 1800s or earlier. As the 
importance of these ferry operations has become ever more apparent, 
they have slowly, in different ways, become publicly controlled. Given 
this relationship between public owners and private operators there are 
needs that the ferry operations rely on that are determined ineligible. 
At the Golden Eagle Ferry location for instance, it has been determined 
that acquisition and improvement to the access road that connects the 
Ferry terminal to the nearest federal-aid-route is not eligible for 
funding. This roadway has been maintained by the ferry operator to 
service the ferry terminal and is public by prescriptive rights only, 
as no federal fund or other locally collected tax funds have been used 
in the past to improve the road. The maintenance on this road has been 
performed by our Highway Department and paid for out of the tolls 
collected by the ferry operator with Calhoun County controlling the 
toll rates. At this time improvements to the road could potentially 
keep this ferry in operation for an additional 60 days per year on 
average as protections for minor flooding could be provided.
    The ineligibility of ``Approach Roadways'' for FBP funds is 
understandable as other funds could be used on the public roadways once 
they have been acquired and built by the local highway authorities. 
However, in this situation the FBP funds are needed to acquire the 
necessary right of way to construct the ``Approach Roadway'' that could 
then be added to the Federal-Aid-System of highways for which it is 
currently not a part of. Once acquired, constructed, and made part of 
the federal aid system, then it would be understood that it would 
qualify for other funds and the FBP funds would no longer be eligible. 
It is my belief that the first acquisition and construction of public 
access roadways to these ferry terminals should qualify to get these 
sections of ``Approach Roadway'' initially 44 added to the Federal-Aid-
System of highways.
    Additionally, other local ferry operations have had maintenance to 
major components of their publicly owned vessels determined ineligible. 
Maintenance on many of these vessels required to meet United States 
Coast Guard (USCG) requirements can be very costly and involve nearly 
reconstructing portions of the barges and push boats. This along with 
the very high cost associated with dry docking facilities has made it 
apparent that some operations need these funds for maintenance of their 
vessels.
    Given the wide range of ferry service characteristics and ownership 
structures that exist, a one size fits all approach to ferry boat 
funding guidance has resulted in many ferry services allowing allotted 
funds to expire, ours included. Eliminating some of these eligibility 
issues, especially when associated with one-time discretionary funds 
that could help to secure public ownership of associated facilities, 
and secure public control of these facilities would greatly improve the 
reliability of ferry services and the Federal-Aid-System of Highways.
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

    Ms. Norton. Thank you very much, Mr. Godar.
    We will now move to Member questions. Each Member will be 
recognized for 5 minutes, and I will start by asking my own 
questions.
    Mr. Principi, your testimony noted challenges in this very 
region, the national capital region, with drivers spending 100 
hours more each year stuck in traffic.
    Now, we are fortunate in the DC metropolitan region to have 
waterways. Not every region has such waterways. Can you provide 
more detail on the level of ridership you anticipate the M-495 
ferry system could serve, and what the corresponding impact on 
traffic congestion might be?
    Mr. Principi. Yes. Thank you, Madam Chair. As I said in the 
testimony, we would expect, at startup, to be able to carry 
about 10,000 daily passengers, which would equate to a little 
over 3 million passengers annually, and be able to grow from 
there.
    The network--you know, it is amazing. This region has so 
many military bases on those river systems. We have so many 
transit-oriented developments on those regions that the sky is 
the limit, with the ability to be able to use our last unused 
blue highways to accommodate the--and vis-a-vis traffic 
congestion, I don't think we will ever get to pandemic levels 
on the interstates. I think we are going to go back to what it 
was before in large measure.
    But congestion, it would, in effect, be able to slow down 
the large amount of money being invested in roads and other 
transit systems, because I believe very strongly that 
investments in ferry service is much more efficient than 
perhaps bus or even commuter rail.
    Ms. Norton. Yes, I anticipate when people know that they 
can get on a boat and get here just as fast, that you will find 
those alternatives increasingly thriving.
    Mr. Principi, one of our goals here, in the District of 
Columbia, is to invest in and revitalize our waterfront 
communities. We are very fortunate to have one of my bills that 
passed, the Southwest Waterfront, another the Southeast 
Waterfront. So we are already revitalizing our waterfronts.
    Mr. Principi, how would the M-495 ferry service help our 
region build a thriving and accessible waterfront community?
    Mr. Principi. Well, by definition, successful waterfront 
communities require transit, that it be transit-oriented 
development. And while there may be bus service and perhaps 
rail in a few areas in those centers, all of them are connected 
by our three rivers. And so, being able to move individuals--
either it be commuters or tourists--between and among those 
transit-oriented developments would be huge, from an economic 
development standpoint, here in our region, not only on jobs, 
but on tax revenue for Government and, in fact, quality of life 
issues for the riders.
    There is nothing better than to be sitting in a reclining 
leather seat with a beautiful, stress-free view of the waterway 
system, as my colleagues are able to accomplish. We would like 
to do that here, in the national capital region, as well.
    Ms. Norton. Thank you.
    Ms. Rubstello, your testimony highlights the workforce 
challenges the Washington State ferry system faces, with a 
staggering number of your highly skilled employees eligible for 
retirement. In the INVEST in America Act, the committee 
dedicated significant resources to ensure transit workers will 
be well trained to keep up with that changing sector. Are there 
Federal resources you can draw upon, as you tackle your 
workforce needs?
    Ms. Rubstello. Well, we are currently already using those 
resources that we have. Part of the challenge is attracting new 
talent, and then being able to train them quickly enough to get 
them onto the vessels and part of the operations team. So it is 
really about bringing that attraction, that these are good-
paying wages, good family-wage jobs. And then, of course, our 
service. So we are utilizing everything that we already have.
    Ms. Norton. Well, that is very pleasing to note, and I 
thank you.
    And now I ask my good friend, the ranking member, for his 
questions.
    Mr. Davis. Thank you again, Madam Chair, and thank you 
again to the witnesses. Great to hear your opening testimony. I 
want to start with my witness, Mr. Godar.
    We have heard a lot today about the need for increased 
funding, but you have an issue where you actually don't need 
any more funding. You just need Government to do their job and 
to be able to use the Federal funds you have for a specific 
purpose. Can you explain in more detail the project you are 
attempting to complete, and would complete, if it weren't for 
pushback from the Federal Government?
    Mr. Godar. Yes, and I don't know that we would turn down 
extra funding, as we would appreciate that. But if you give me 
funding I can't use, it doesn't help.
    So in this situation, our local ferry operation at Golden 
Eagle started out, like many, as a private operation, how most 
of these river ferries in our area began. And over time, these 
ferries have either been replaced by bridges, or in strategic 
locations, have slowly been modified from private ownership to 
public ownership, or a combination public-private partnership, 
which is the case in this situation.
    At this location in, I think, 1969, IDOT eminent-domained 
the terminal on the Illinois side, as there were some conflicts 
with property owners there and bestowed the power of managing 
the ferry onto the county. No such issue has ever taken place 
on the Missouri side of the Mississippi, and the terminal is on 
U.S. Army Corps of Engineers land. And there is a gap from 
there to the next closest Federal-aid route that is managed by 
MODOT. And our ferry operator still owns a small piece of 
property and the roadway that connects the two.
    And, given the ferry boat funds, we were hoping to improve 
that section of road, which is in dire need of it, but have 
been told that it does not qualify, because it is not in the 
system.
    Mr. Davis. Can you give us a brief example of some of the 
benefits that it would bring if this project were to be 
completed, that would come to Calhoun County and southwestern 
Illinois?
    Mr. Godar. Yes. So improvement to this road, and it is--it 
would be a simple fix to improve the road, and raise a section 
of it from 2 feet to 6 inches [sic]. That would offer an 
additional 60 days of operating time on average, per year, 
where the road is inundated by floodwaters. Route B is still 
open, we just cannot make the connection. That closes this 
ferry operation down, which reduces traffic, increases 
congestion.
    The ferry company has repowered two of their tugs with 
lower emission engines through CMAQ funds in the past. I think 
they would be greatly interested in looking into purchasing new 
tugs they need to right now that they don't have the funding to 
purchase. But with electrification and these other changes, I 
think that they would be interested in pursuing that.
    But here, with this smaller operation, we are lacking the 
funds to match those type of Federal investments. So I think at 
our smaller operations like that, they are going to need 
additional support just to be able to do those things, even if 
allotted Federal funds, because of a lack of matching funds.
    And back to the road issue, I think I need to have FHWA, 
IDOT, and MODOT come together and provide Calhoun County with a 
funding source that will allow us to utilize--to acquire what 
needs to be a public right-of-way to solidify this very 
important ferry connection.
    And I think that wraps up most of our issues we are having.
    Mr. Davis. Great, thank you. And I would be interested in 
hearing from any of the other witnesses at some point if you 
have any permitting issues, with how long permitting takes.
    But I do want to briefly say something to Ms. Rubstello.
    Ms. Rubstello, you mentioned workforce. You may not be 
aware--a lot of folks aren't aware--as part of the CARES Act, 
Congress actually passed a provision that allows employers to 
pay down student debt, just like they were able to do with a 
tax--with a $5,250 limit for the employee not to have to pay 
taxes on during--that is the same thing that exists with 
tuition reimbursement. Employers can now pay down student debt 
up to that level, tax free, for their employees or future 
employees. It is a great recruitment, great retention tool.
    I would urge--and you don't have to fill out a grant 
program to get the money. It is utilizing our tax code to help 
encourage employers to attack the student loan debt problem in 
this country, and a voluntary, private-sector approach. So I 
would urge you to reach out to our office. We will get you the 
information on it. I think it can really help address some of 
the workforce issues right now in your industry.
    And I yield back, Madam Chair.
    Ms. Norton. Well, I thank the ranking member for his 
questions, and I now recognize Mr. Sires for 5 minutes.
    Mr. Sires, you are recognized.
    Mr. Sires. Well, thank you very much for holding this 
hearing.
    My district, being one of the most congested districts in 
the country, being so close to New York, having the Hudson 
River, we have a number of ferry stations. And quite frankly, 
if it wasn't for the assistance of the Federal Government, we 
would be even more congested.
    We have tied the ferry ports to our light rail, where the 
light rail brings people to the ferry, and the ferry goes into 
New York, obviously. It only takes about 7 minutes to get 
across the river, but people save quite a bit of time.
    But the most important part is that you have all those cars 
taken off the road. Between the light rail and the ferry, there 
are a number of cars that are taken off the road every single 
day.
    The other part that helps with the ferry is, when 9/11 
happened, the only people that could get out of New York, 
because everything else was closed, was through the ferry. 
Every time there is an emergency, the ferries are there to 
assist. If you remember when Captain Sully landed on the Hudson 
River, the first people who were there to assist in that 
accident was the ferry system. So that is another plus for the 
ferries in areas--hopefully, that you won't need them. And 9/
11, obviously, they were ferrying people out of New York into 
New Jersey.
    But we have just about every single mode of transportation 
you can think of in my district, from ferry to light rail to 
cars, tunnels, bridges, you name it. But the ferry has been a 
very, very successful endeavor here in this district.
    My question is what else can we do to improve ferry systems 
in other areas of the country, or in my area, also? To anyone 
that wants to answer that question.
    [Pause.]
    Ms. Norton. I think the question is addressed to any member 
on the panel.
    Mr. Sires. Can you hear me?
    Mr. Murphy. Thank you, Congressman, I can tackle that one.
    I think that it is essential that we look at increasing 
funding. The ferry, as a travel mode, doesn't necessarily get 
the appreciation that it deserves. Mr. Principi pointed out 
that it can oftentimes be a much more efficient investment in 
terms of moving people, reducing congestion, addressing 
emissions, than some other modes. So I think that it is worth 
exploring, increasing funding opportunities.
    I also want to respond to the question about permitting 
issues. I think there are opportunities that we can look at to 
streamline permitting for projects and their expansion 
opportunities that all of us are looking at. There is a 
sequential approach to permitting between agencies these days, 
instead of an approach that lets different regulatory agencies 
look at permits at the same time. That would really speed 
things up. We know time is money, and so that is another area 
that I think could be improved, probably not just for ferries, 
but infrastructure generally.
    Mr. Sires. Just like--because of the development that we 
have on the New Jersey side of the river, more and more people 
are coming from New York who live in New Jersey, and take the 
ferry into New York, which is, compared to all the other modes 
of transportation, it really saves a great deal of time for 
these people, because they could be home in half an hour, and 
that is unheard of in this area. Anybody who has ridden the New 
Jersey Turnpike and gone on the Lincoln Tunnel or the Holland 
Tunnel would know. We have the tunnels, obviously.
    So I am all for trying to help not just my area, but other 
areas, because I have seen the success of the ferry that it has 
brought to this area. So let's keep funding, let's keep 
improving, because it is not only clean, it is an alternate 
way, other than cost, the cost of the road, all those good 
things that ferries provide.
    For many years, there was a lot of ferry activity here, and 
then it died off. But since all the development has happened, 
people are more and more interested in having ferries in their 
own towns, which takes them right into New York City. That is 
where the jobs are in this part of the State.
    Thank you. I don't have any further questions.
    Mr. Principi. Congressman, Congressman, let me just briefly 
respond to your question.
    We sympathize. Our commuters here sympathize with the 
commuters in New York and New Jersey. We have very much the 
same type of traffic congestion as you do. And my hat is off to 
the committee for the passage of H.R. 2.
    H.R. 2 would have done great things for our ferry system 
here, in the national capital region, including an increased 
amount of funding opportunities and the ability to utilize some 
of that funding for operational purposes.
    The large drawback to the launch of ferry service, I 
believe, in this country is the inability to secure or 
guarantee an operating subsidy for, say, labor and fuel: the 
two largest expenses. And so, without the ability to have an 
operating subsidy, it is difficult to attract the private 
sector to make that initial risk and take that initial 
responsibility of being able to start service.
    And then the other provision that we really liked in H.R. 2 
was the projects of national and regional significance, a 
separate pot of money for regional transportation systems that 
would benefit both of our areas.
    Ms. Norton. Thank you very much. The next question will be 
from Mr. LaMalfa.
    You are recognized for 5 minutes, Mr. LaMalfa.
    Mr. LaMalfa. Thank you, Madam Chair. I appreciate the 
hearing here.
    We don't have a great amount of ferry activity in my 
district here, although I see my colleague, Mr. Garamendi--
maybe we could reach an agreement on getting that one at 
Princeton to get service going between Butte and Colusa County 
going again. That helps save a lot of mileage for our farmers 
moving their machinery, as well as just a general commute, you 
would say, in that area. It was pretty handy back in the day, 
so we understand the need, the importance.
    And I wanted to direct some questions towards Mr. Murphy on 
the bay area, where--that is fairly proximate to our area.
    And what you are looking at, you know, we have used some of 
that service in the past, as a tourist, mostly, in the area. So 
when you talk about--there is ridership currently on the 
system. It is about 40 percent of pre-COVID, and seeking to 
restore service. How long do you think--that is probably pretty 
unpredictable, but to get back to 100 percent service?
    And also parallel that with what do you see, what do you 
know on bridge traffic for automobiles? What is the level of 
traffic for automobiles versus the--in--you know, in bouncing 
back from the COVID era? Has it responded much more so than 
ferry service at a higher number than 40 percent?
    Mr. Murphy. Yes, thank you, Congressman. It is a good 
question.
    We are seeing ridership levels at about 40 percent now. 
That is ahead of where we projected to be right now, even with 
the Delta variant impacts, which have had a significant impact 
on travel, generally, in the bay area. We think that we can get 
to 50 percent. That is what we budgeted for the current fiscal 
year, 50 percent of pre-COVID ridership by the end of June 
2022. Our goal is to get back to somewhere in the area of 75 
percent by the end of fiscal year 2023. So we are looking at a 
2- or 3-year recovery cycle before we can get back to 100 
percent.
    There are still--job and population growth is happening in 
the bay area----
    Mr. LaMalfa. Let me jump in, I am sorry, as time is limited 
here.
    Mr. Murphy. Yes.
    Mr. LaMalfa. What do you see--do you have numbers for what 
bridge traffic is for automobiles?
    Mr. Murphy. They are back to pre-COVID levels. They are not 
focused on the commute period, necessarily. They are spread out 
more across the day, which is what we are seeing on transit 
service, as well. Off-peak service is more resilient than it 
was pre-COVID. But bridge traffic is back to 100 percent of 
pre-COVID levels.
    Mr. LaMalfa. What do you think the barrier is between 
people--you know, it is not a lot of fun to go across the 
bridges during peak traffic there. Why isn't the ferry bouncing 
back more quickly? Why isn't it already at, say, 75 percent? 
Not pointing fingers at you, but just in general, why are not 
users jumping at that opportunity to have a shorter distance or 
a straighter travel?
    Mr. Murphy. Yes, I think it is hard to say. But because the 
traffic is spread out over the day, we are not seeing the peak 
congestion time constraints, the travel times that we saw 
previously in the--that were focused on the peak period. We 
know those are coming, but it is going to take downtown San 
Francisco largely reopening office-based jobs and employers 
that are welcoming those commuters back to the office, which is 
looking like a January timeframe for the bay area.
    Mr. LaMalfa. Oh, OK. That will be tough. All right.
    So talk about the retrofitting. Are we talking about 
brandnew boats, or are we talking about refitting current boats 
with the different propulsion system when you are talking about 
going to--I guess is it diesel engines to zero-emission 
electric?
    Are you utilizing--do you see them utilizing the current 
craft, or as a brandnew craft?
    Mr. Murphy. We are looking at doing both. We are looking at 
buying some smaller vessels that are battery-electric, that 
would be able to operate some of our shorter routes, and we are 
looking at repowering our existing diesel vessels to be able to 
use zero-emissions battery-electric technology.
    Mr. LaMalfa. What do you think would be a projected cost on 
an average, full-sized diesel retrofit?
    And then how is that going to reflect in the price of the 
ticket, let's say?
    Mr. Murphy. We are assessing that now. We--there are some 
options for doing that. I can get back to you with more detail 
on the cost ranges for the retrofits.
    Our goal is to have it not affect the cost of a ticket at 
all. We would like to be able to use our local and regional 
matching funds to leverage Federal programs that would be 
sufficient to be able to accommodate those costs, and not have 
that trickle down to our fares at all.
    Mr. LaMalfa. Well, that would be a taxpayer expense, then, 
unless somehow it was paying for itself.
    Is this a mandate, or is this something that you seek as a 
goal in order to, you know, better public relations?
    Mr. Murphy. There is a mandate in California to reduce 
greenhouse gas emissions for commercial harbor craft. We are 
subject to that. There are a few ways to go about it. It 
doesn't require zero-emission technology for any routes that 
are longer than 3 miles. Routes less than 3 miles are required 
to be zero emission. We are doing a little bit more on the 
zero-emissions side than what would be required by that 
regulation.
    Mr. LaMalfa. OK. Well, hopefully, the one over to Oracle 
Park from across the bay is in that category of not having to 
retrofit, because I would like to go over there and root for 
the Giants against the hated southern California franchise.
    Anyway, so thank you.
    Mr. Murphy. Thank you.
    Ms. Norton. Thank you, Mr. LaMalfa.
    Mr. Huffman, you are recognized for 5 minutes.
    Mr. Huffman. Madam Chair, thanks for this important 
hearing, which comes, obviously, on the eve of the House 
potentially taking a vote this week on the Senate's 
infrastructure bill.
    As Chairman DeFazio has said, this bill was not written the 
right way. It came together in a back room, written by a dozen 
pro-fossil-fuel Senators, and it has the oil industry's 
fingerprints all over it. Critical investments in tackling 
carbon emissions in the transportation sector were gutted from 
the House's INVEST Act.
    And unfortunately, even when this bill tries to do 
something right, the Senate bill manages to get it wrong. So 
they included $1.2 billion for public ferries. But the bill 
dedicates $1 billion of that to rural ferry services, excluding 
the rapidly growing ferry systems in California and other 
places. In fact, the FTA estimates that only four ferry 
services in the entire country would be eligible for the 
funding under this bill, as it is currently written.
    But what came out of that backroom Senate deal is 
apparently sacred and unchangeable. We are told that we just 
have to live with what is in it, including the errors. There 
was a last-minute attempt to correct an error, increasing 
funding by $1.25 billion for the passenger ferry program. But 
the bill was rushed through without it, and here we are this 
week voting on a bill that not only includes giveaways to the 
fossil fuel industry, that not only underfunds critical climate 
priorities, but also just has errors and mistakes in it that we 
are told we cannot fix.
    And because of the double dipping promise that was made 
without any of us being party to it, it was impossible, 
unfortunately, even for this committee's reconciliation package 
to address the inequity in ferry funding.
    So, Mr. Murphy, I want to ask you about this. The Senate 
bill does increase funding nominally for the ferry formula 
program by about $30 million out-years. How much does this 
actually increase funding for WETA?
    Mr. Murphy. Yes, it is not much, Congressman. Thank you for 
the question. Thank you for your support of our system, 
historically, as well.
    But it is less than $1 million a year from that FHWA 
program. So the increase----
    Mr. Huffman. And remind me, how much does a new ferry boat 
cost you?
    Mr. Murphy. A new ferry boat is expensive. A small ferry 
boat is in the neighborhood of $4.3 million. The large ferry 
boats that we operate, our 400-passenger, those are upwards of 
$25 million.
    Mr. Huffman. Right. My understanding is that 35 percent of 
the allocation formula on this program is based on the number 
of vehicles carried by each ferry, the result being that 
funding is not as focused on helping remove vehicles from 
congested areas, as that is what our bay area ferries actually 
do, but actually has a discriminatory effect on ferries like 
ours that move people, rather than vehicles. Is that fair to 
say, Mr. Murphy?
    Mr. Murphy. That is correct. It is tough to make it easier 
to move cars on a boat in the bay area. We are more interested 
in moving people, and this program is focused on ferry vessels 
that move cars over longer distances.
    Mr. Huffman. And unlike the ferries in the bay area and 
other metropolitan areas, ferry service in Alaska, though, will 
do very well under this backroom deal that came out of the 
Senate. They will get an additional $12 million annually under 
the Senate bill, because they cover very long distances, and 
they move cars. And that is the way the deal was cooked.
    So, I tell you, I want to see support for rural 
communities. I want to see support for ferry service in rural 
communities, but not at the expense of major successful 
metropolitan area ferry programs like the one we have in the 
bay area.
    In fact, I look at this windfall to Alaska, and I see it on 
top of the new LNG facility that Senator Murkowski has achieved 
for herself, with a $25 billion tax credit. And it sure looks 
like--you know, they have said they are getting rid of 
earmarks, but this sure feels like a pretty generous earmark, 
at least a windfall, and we just shouldn't be doing that at the 
expense of urban communities, in my opinion.
    Ms. Rubstello, I want to ask you about your efforts to 
electrify, or to go to hybrid-electric and full-electric 
vessels. What impact would the availability of those FTA urban 
ferry funds have on your system's ability to purchase these 
cleaner vessels, and refurbish your fleet?
    Ms. Rubstello. Well, we take full advantage of it. You 
know, as I mentioned, we have a convergence plan, so three 
existing boats that we want to convert. So we would utilize to 
the greatest extent possible on that, and then look at our 
shoreside infrastructure. That is a huge component to get the 
full benefit of going electric. And so we would focus a lot of 
the funding in that area, as well.
    Mr. Huffman. Great. We have just got to make sure the 
formula makes those funds available to you, and we have got 
some work to do to get that fixed.
    So with that I yield back. Thank you very much, Madam 
Chair.
    Ms. Norton. Thank you very much, Mr. Huffman. I am pleased 
to recognize now Mr. Burchett for 5 minutes.
    Mr. Burchett. Thank you, Chairlady. And I am--I guess, 
technically, I am the ranking member right now, so your side 
has had adequate leadership. Ours has been woefully underserved 
up to this point, especially since my buddy, Rodney Davis, was 
sitting up here.
    But Mr. Murphy, prior to the pandemic, 60 percent of WETA's 
operating costs were covered by fares. What percent of funding 
was provided by the State and local governments, and what 
percent came from Federal sources?
    Mr. Murphy. Our operating budget, the remaining subsidy, 
was provided largely by bridge tolls collected in the bay area.
    Mr. Burchett. OK, thank you.
    And this is for anybody and everybody, I guess. Do you have 
any suggestions for boosting the ridership, and making ferry 
systems more financially independent?
    [Pause.]
    Mr. Burchett. This is a chance----
    Mr. Principi. Well, Congressman, I will----
    Mr. Burchett. Go ahead.
    Mr. Principi [continuing]. Jump in on that. The stakeholder 
group has conducted a number of technical studies, including a 
market analysis here in this region, and we concluded that the 
two most important issues for a rider is time and cost. And to 
the extent that a trip takes longer than, say, a single-
occupancy vehicle or another mode of transit, they are not 
going to select the ferry service as their way into work.
    And then cost, passenger ticket cost. While we have a very 
high, high cost of living here in the region, prospective 
passengers would be unwilling to pay a ticket cost if it were 
costing more than their individual trip, which, in Washington, 
DC, requires another $20 or $25 on top of the cost in order to 
park.
    Mr. Burchett. OK----
    Ms. Rubstello. So I would like to add on to that. I agree, 
the concern about increasing the cost to the point where 
somebody doesn't want to take the ferry is of concern.
    But the other thing, what we have been able to do in the 
urban area, is be able to connect the transit system to our 
ferry system, so people have that as an option. In the rural 
areas we struggle on that. And so having more support on 
funding those first-mile/last-mile connections, I think, will 
really help increase that walk-on passenger capacity.
    Mr. Burchett. Anyone else?
    Ms. Norton. Mr. Burchett, she said funding first--funding 
the two systems. I didn't understand how they do that.
    Mr. Burchett. OK, ma'am, could you----
    Ms. Norton. Connecting the two systems.
    Mr. Burchett. Could you explain that to us?
    Ms. Rubstello. Sure. You know, in the urban area, where we 
have transit systems that are already there, easy connections. 
So we have created, essentially, transit hubs at some of our 
terminal locations, so someone can walk off our ferry and hop 
right on to a bus, or a commuter rail.
    In the more rural areas, having that infrastructure is the 
only way you are going to increase the ridership on the 
vessels, on the ferries for walk-on passengers, is having that 
transit component available to the user.
    Mr. Burchett. Does that make sense to you, Chairlady?
    Ms. Norton. Yes.
    Mr. Burchett. All right.
    Ms. Norton. Yes. With no new fare? But that is a--but then 
they pay a new fare to get onto the new--to another system.
    Ms. Rubstello. That is true. However, in our region we have 
a one-payment system, so it makes it very streamlined and easy 
for a passenger to go from one system to the next.
    Mr. Burchett. Are we good?
    Ms. Norton. Yes.
    Mr. Burchett. All right. Well, thank you all very much. And 
where I live in east Tennessee, to be honest with you, the only 
ferries that are there are just historic markers. Most of them 
were sunk a little bit after the Civil War, or during the Civil 
War. So it is--this has been very educational to me.
    So thank you, Chairlady.
    Ms. Norton. Do you have waterways?
    Mr. Burchett. Oh, TVA, we have got them all over. It is 
just that we just don't have a lot of ferries there. There is a 
lot of roads named after them, and they just end at the lake, 
usually, oddly enough, and they pick up on the other side. So 
that is kind of--that is the history of it. But thank you, 
Chairlady.
    Ms. Norton. Thank you very much, Mr. Burchett. I now 
recognize Mr. Garamendi for 5 minutes.
    Mr. Garamendi, you are recognized.
    Mr. Garamendi. Thank you, Madam Chair. Mr. Huffman covered 
much of what I wanted to discuss. But I want to carry it a 
little bit further, and particularly talk to Mr. Murphy about 
the bay area.
    The WETA program in the bay area is part of, but not all 
of, the ferry system. There are also private ferries operating 
in the bay area. Mr. Murphy, could you discuss their role in 
providing the transportation needs of the area?
    Mr. Murphy. Sure. Yes, there are a number of private 
operators. WETA uses one of those operators as our contract 
operator, Blue and Gold Fleet. There are some other operators 
providing service to employers who contract for that service to 
connect their employees, specifically--not a public ferry 
system, but connect their employees to their campuses. They 
also provide some charter service throughout the bay area, when 
needed.
    We have been looking for opportunities to partner with 
those private operators and explore ways that we can utilize 
the infrastructure that they have to be able to pilot different 
services that are public. We are in the middle of developing 
those plans now.
    Mr. Garamendi. Very good. We have also had--so as we 
proceed with legislation to correct the problems that the 
Senate has given America with their bipartisan infrastructure 
plan, we should keep in mind the role of private ferries 
throughout this.
    There is also something that will come up, I believe, in 
the Coast Guard reauthorization having to do with the financing 
authority. This is the Capital Construction Fund for ferries. 
Presently, it only applies to ferries that carry cars or other 
kinds of cargo. It does not speak to passenger ferries alone, 
so we need to correct that over in the Coast Guard 
reauthorization.
    The other issues, Mr. Murphy, we discussed this, but I 
don't think thoroughly, and that has to do with the transition 
from fossil fuel power to other kinds of power. We discussed 
this a little. What do you need in Federal law to complete 
that, keeping in mind that we had tried to do that in the House 
INVEST Act?
    And Mr. Murphy might want to do that, and also Ms. 
Rubstello.
    Mr. Murphy. Yes, thank you, Congressman, and I appreciate 
your support for making our ferry system cleaner in the bay 
area. We are looking to do that, to convert a large portion of 
our system to battery-electric technology. There may be 
opportunities down the road to use hydrogen technology. That is 
something we are exploring, as well.
    The thing we need is--two things. One is we need robust 
Federal funding to support the costs associated with making 
that transition to match our local and regional and State 
sources which do exist. And the other thing that we need is we 
need the industry to continue to innovate in that area, to 
compete with diesel technology and the travel times, the trip 
links that can be accommodated by diesel fuel. Battery-electric 
and hydrogen technology just needs to continue to advance.
    Mr. Garamendi. OK. So specifically, we need--you will need 
Federal support to achieve that transition.
    Just a quick point. We often talk about subsidies here. 
Let's keep in mind that the entire highway system for 
automobiles and trucks is very heavily subsidized along the 
way.
    Now, with regard to the question of the Federal formula for 
public ferry service, how does the current formula disadvantage 
public ferry services in the bay area? And perhaps we have 
covered part of that with the passenger ferries being 
discriminated against with car ferries.
    So Ms. Rubstello, if you would like to, chime in on both of 
these questions, the former one as well as the current one.
    Ms. Rubstello. Yes, thank you for that. I just echo what 
Mr. Murphy mentioned. I mean, certainly having additional 
Federal support for the ferry system is necessary, as well as 
the innovation on technology, and not just on our vessels 
themselves, but also that shoreside power source. It is 
important to have those be as cost effective and innovative, as 
well.
    And I apologize, I forgot your second question.
    Mr. Garamendi. That is OK, you basically covered it. And we 
are going to run out of time in a few seconds.
    Ms. Rubstello. OK.
    Mr. Garamendi. The other thing is in the INVEST Act we 
purposely connected all transportation programs, whether it be 
a truck terminal or a ferry terminal to the land base and to 
other transportation systems.
    I would note that that is not in the Senate bill. It is 
something we are going to have to continue to work with, so 
that we make sure that there is the connectivity which several 
of you have discussed.
    With that my time is expired, and I yield back.
    Ms. Norton. Thank you, Mr. Garamendi. I will call on next 
Ms. Bourdeaux.
    Ms. Bourdeaux, you are recognized for 5 minutes.
    Ms. Bourdeaux. Madam--I yield back my--I did not--I did not 
prepare 5 minutes of talking points. Great to be here. I 
appreciate the chance to be a part of this hearing.
    Ms. Norton. Thank you, Ms. Bourdeaux.
    Ms. Bourdeaux. I yield back, thank you.
    Ms. Norton. Mr. Moulton--wait a minute.
    Mr. Carbajal, you are recognized for 5 minutes.
    Mr. Carbajal. Thank you, Madam Chair. My question is for 
Mr. Murphy.
    The transportation sector is one of the largest emitters of 
harmful greenhouse gas emissions. In 2019, 29 percent from 
modes of transportation. Can you discuss the benefits of 
transitioning to zero emissions?
    Mr. Murphy. Sure. Yes, it is critical to our climate goals. 
Transportation, as an industry, is responsible, as you say, for 
a large portion of greenhouse gas emissions. We have to keep 
trying to make it cleaner. That has been one of the criticisms 
of water transit service in the past, is that the missions are 
a challenge to be able to address.
    There are ways to clean up diesel fuel. We are the first 
passenger ferry agency to install Tier 4 engines, which, on our 
system, reduces 10 tons of greenhouse gas emissions every year. 
So there are improvements to make in that area. But ultimately, 
we need to look at moving to zero-emissions technology to make 
sure that our climate goals could be achieved.
    Mr. Carbajal. Mr. Murphy, how can Congress better support 
programs that move us towards a cleaner future?
    Mr. Murphy. Yes, thank you. I think one of the things we 
have talked about here is the inequities of the FHWA program, 
and the way that it addresses the funding needs for some ferry 
systems, but not others. If you are a passenger ferry-based 
system like WETA, that doesn't carry cars and operates over 
some relatively short routes, still long enough to be able to 
accomplish some dramatic greenhouse gas reduction goals, but 
not as long as what is rewarded by the FHWA program, we need to 
look to the FTA program.
    The FTA program is focused on funding systems like ours, 
that meet our characteristics, that operate in urban areas over 
short distances, carry passengers, and we just need to increase 
funding for that program to make sure that resources are 
available.
    We were happy that a technical corrections amendment was 
ready to go in the Senate. We know we couldn't get it done in 
reconciliation. And so there are other avenues that we are 
hoping the committee can explore to make sure that we add that 
funding back in.
    Mr. Carbajal. Thank you.
    Ms. Rubstello, as we look towards decarbonizing our future, 
and begin to tackle the climate crisis, we often focus on 
transitioning our fleets towards zero emissions. However, 
charging stations and infrastructure are also needed to fulfill 
our visions towards lowering our carbon footprint.
    Can you discuss your plans further for terminal-charging 
infrastructure, and how Congress can help support these 
efforts?
    Ms. Rubstello. Yes, thank you for that question. Yes, the 
shoreside power is very vital to ensuring that we get the most 
benefit out of converting our fleet to hybrid electric.
    We have been working with our power suppliers in our 
region. We are looking at providing at 16 of our terminals the 
necessary infrastructure. And so being able to ensure that the 
Federal funding supports that is vital for us to get that full 
benefit of our conversion program.
    Mr. Carbajal. Thank you.
    Madam Chair, I yield back.
    Ms. Norton. Thank you, Mr. Carbajal, for your questions. I 
now recognize Mr. Moulton for 5 minutes.
    Mr. Moulton, you are recognized.
    Mr. Moulton. Thank you, Madam Chair, and thank you to all 
the witnesses who are here.
    My district, on the North Shore of Massachusetts, benefits 
from some limited ferry service, which is very popular, but we 
have also had an experience where we have started some ferry 
service on a trial basis that wasn't continued by the State. It 
is very much missed in the city of Lynn, for example. The city 
of Salem is looking to expand the ferry service it already has.
    But we are very concerned about the climate implications. 
We also have very good commuter rail service. It is not a 
regional rail, but it is very popular. We are looking to 
electrify that. As we think about electrifying our ferries, and 
moving to a zero-emissions service, how do you have to adapt 
the service to accommodate that?
    Do you have to provide for charging time at docks?
    Do you have to--you know, what sort of infrastructure 
investments are you looking at?
    How do we need to think about the changes we would have to 
make to the existing service to accommodate the zero-emissions 
vehicles?
    And, I guess, actually, that is a good--sorry, I didn't 
direct that to anyone in particular, but I don't know if, Mr. 
Murphy, you would like to respond, or Ms. Rubstello, whoever 
would like to jump in there.
    Mr. Murphy. I can start. It is a big challenge. We are 
studying it right now. We have a shoreside infrastructure study 
that is looking at all of the technology that is available and 
applying different options to our system to see how we might 
need to adapt our services.
    Our goal is not to have to adapt much at all, in terms of 
travel time, and scheduling, and frequency. But the reality is 
it might take a little longer to charge, depending on what you 
can afford to install at the shoreside. If you can't afford 
rapid-charging infrastructure, which is more expensive, then 
that slow trickle charge might mean that your boats are parked 
at the dock for a little bit longer. Sometimes they might need 
to charge overnight, or for a number of hours before they are 
ready to operate again. So that is a tradeoff, but there is 
technology that exists. It is more expensive, but it can 
rapidly charge boats at the dock during dwell time without 
sacrificing much in terms of schedule or frequency.
    Mr. Moulton. Mr. Murphy, just as a realistic goal, when do 
you think you will be able to transition to this new zero-
emissions technology? Is this something that can be 
accomplished in the next few years, or is it realistically 10 
or 15 years out?
    Mr. Murphy. We can begin to phase this technology in in the 
next few years. We have a State grant to buy what would be the 
region's first high-speed passenger all-electric vessel. That 
grant comes with some funding to install some shoreside 
infrastructure.
    We have just applied for--or will be applying for--the FTA 
discretionary program for another couple of vessels to serve 
new neighborhoods on the San Francisco Bay front. They will 
also be all-electric. So we are starting to move in that 
direction.
    But if the FTA program was funded at $1.25 billion over the 
next 5 years, I would say we would be able to make a really 
significant amount of progress over that time period and get to 
our 50-percent conversion over that time period if those 
funding levels existed.
    Mr. Moulton. Assistant Secretary Rubstello, tell me how you 
think about balancing your funding priorities between 
converting existing vehicles to low emissions, or even adding 
frequencies on existing routes, versus starting new routes. 
That is something that we are trying to figure out in our 
community.
    Ms. Rubstello. Well, right now we are really focused on how 
we make our current routes as efficient and effective as 
possible. So that is where we spend our time, focused on that.
    And as it relates to the conversion side, we are just so 
happened--at a time with our current vessels, the three that I 
mentioned that we are going to do a conversion on, is--it just 
so happens they are at their mid-life overhaul for those 
engines. And so it is just the right time to make that 
conversion happen.
    Mr. Moulton. I mentioned the city of Lynn experimented with 
ferry service a couple of years ago. It seemed very popular, 
but didn't quite have the ridership that they were hoping for. 
The proponents said, ``Look, you just need to give it time.''
    What are other things that we should think about, in terms 
of encouraging ridership and getting people to make the switch, 
so that it can be proven?
    Ms. Rubstello. Well, I would say it is a couple of 
different things. One is, what are those other connections that 
are available to them, so that they can get to where they need 
to go, if your focus is for them not to be utilizing their 
cars.
    The other thing is, what is the development around those 
terminal locations, and so how does that support those trips 
that customers are wanting to take?
    Mr. Moulton. Those are great things to think about.
    Thank you, Madam Chair. I yield back.
    Ms. Norton. I thank you, Mr. Moulton, for those questions. 
I now recognize Mr. DeSaulnier for 5 minutes.
    Mr. DeSaulnier, you are now recognized.
    Mr. DeSaulnier. Thank you, Madam Chairwoman. Thank you for 
this hearing.
    Mr. Murphy, having had a--or a long history with the 
ferries in the San Francisco Bay Area, particularly the 
commutes from the East Bay into the ferry building, we made 
good progress. But as I remember my time on the metropolitan 
planning organization and MTC, the modeling in the I-80 
corridor--and for those of you who aren't familiar with it, it 
is our most congested part of the San Francisco Bay Area across 
the Richmond Bridge in my district, and then across the Bay 
Bridge--modeling was always a challenge, and we would like to 
be more like Seattle, and get the ridership up.
    But maybe you can talk a little bit about how ferries can 
make an obvious difference, and particularly to communities 
that don't--nontransit-dependent or transit-dependent 
communities like the community I represent that now has a ferry 
that goes from Richmond into the ferry building. Maybe talk a 
little bit about those challenges of the measurability in high-
congested corridors, and moving them off.
    And we have a perfect example. The Bay Bridge is the most--
one of--I think it is the second busiest toll bridge in the 
United States. How do we move traffic--and we can't build more 
infrastructure in there, it is prohibitive, and it costs--we 
have got the problem of induced demand.
    So we have struggled in this area, and I know other urban 
areas have. How do you do the modeling that shows that people 
can get off, and it is not just exclusively people of means, 
that we also reach out to people who historically have been 
transit-dependent, and find it difficult to be able to take 
water transport?
    Mr. Murphy. Yes, thank you. Yes, and thank you for a long 
history of support for public transit in the bay area. It is a 
tough question. There are a number of aspects to it.
    One thing we know we need to do to address congestion, 
though, is that we need to attract choice riders. We need to 
make sure that people who have the option to drive are choosing 
to take public transit--in this case, ferries--instead. That 
means we need to make our service relevant to their needs. We 
need to go where they want to go. It needs to be frequent 
enough. The convenience factor needs to be very high.
    Ms. Rubstello brought up first/last-mile connections a few 
times now. That is critical to ferry service. We are a regional 
connection, but we can't necessarily solve that first/last mile 
unless we work with our partners who run buses, shuttles, 
employers to operate dedicated shuttles to first- and last-mile 
locations.
    We have some transit network company, TNC, partnerships, 
where we make it affordable for folks to use TNCs to solve that 
first/last-mile commute, ideally with a carpool situation.
    For transit-dependent riders, the fact is people paid a 
premium for ferry service prior to the pandemic. We were higher 
than other transit modes, and that created a ``have'' and 
``have-not'' situation. We have addressed that with our 
pandemic recovery program. We have lowered our fares to be in 
alignment with other transit modes that operate in the same 
corridor. We don't want riders to have to choose one system 
over another because of price. We want to make sure they are 
choosing a system that works best for them, and it is up to us 
to make it affordable, and to make sure that it is relevant and 
actually does work best for their commute needs.
    Off-peak service has been a real boon for our system during 
the pandemic recovery. It has been the most resilient part of 
our system, and we think that is because transit-dependent 
workers are likely to be traveling during the off peak to shift 
work, for example.
    So those are a few things we need to do, and there are 
more, I am certain.
    Mr. DeSaulnier. And then you bring up a good point with the 
history is--I mean, of course, your agency started with the 
idea. I remember then the president of the State senate, after 
Loma Prieta, that we couldn't be dependent on our bridges 
because we are in a seismic area. And then, of course, we have 
learned we have to be more resilient in other regards.
    I was wondering if, Ms. Rubstello, if you could comment on 
your history, or any of the other panelists, around 
performance. It goes a little bit to the air quality issues. 
You know, we want to get those tons down, we want to get the 
system as good as possible when it comes to traditional 
pollutants and carbon, but also the equity issues and the 
social justice issues. Ms. Rubstello?
    Ms. Rubstello. Yes, definitely on the social justice 
issues, it is really about having that reliable service. And we 
hear it across the board, that that is what is most important 
to people, it is that reliability. Because not showing up to 
work is a paycheck you are not collecting, so that is 
important.
    One thing that we were hoping to start last year, before 
the pandemic hit, was a low-income fare option. That is 
something we currently don't have, but that is something that 
we want to consider, and so that is something we are looking 
forward to getting started soon, to see how we can further 
support those users that are out there.
    Mr. DeSaulnier. Thank you, Madam Chair. I yield back.
    Ms. Norton. Thank you, Mr. DeSaulnier. Mr. Garamendi just 
mentioned to me hydrogen generation as an important way to fuel 
the ferry. We use it in our cars. I have one that uses it now. 
So I would like the record, since he didn't get an opportunity 
to ask that question, I would like to get his mention of that 
in the record. And now I am pleased to recognize Mr. 
Auchincloss.
    You are recognized for 5 minutes.
    Mr. Auchincloss. Thank you, Chairwoman, for holding this 
hearing to review the importance of investments in our ferry 
system to improve mobility for all people.
    And to the witnesses, thank you for participating.
    In Massachusetts, commuters rely on MBTA ferries to get to 
work in Boston from the South Shore, and to circumvent a 
horrendously congested vehicular traffic route. Island 
residents rely on ferries, not only for tourism revenue, but 
also as a lifeline for emergency services, food, medicine, and 
other essential equipment.
    Ms. Rubstello, you discussed how Washington State Ferries 
is working to comply with Governor Inslee's goal of a zero-
emissions fleet. Transportation in Massachusetts is the largest 
single source of carbon emissions. And as you mentioned, the 
Washington State Ferries' diesel fuel consumption makes it the 
largest generator of carbon and other greenhouse gas emissions 
from Washington State government.
    How long do you think it is going to take to fully 
transition to a hybrid-electric fleet, and what can the Federal 
Government be doing to help meet that goal?
    Ms. Rubstello. Thank you for that question. Well, part of 
our long-range plan looked at how long it would take, and we 
think it is going to take 20 years to build out our fleet to be 
completely hybrid electric.
    So, as our old vessels are coming due, we would just build 
new ones to replace them, as well as, as I mentioned earlier, 
the conversion of our three larger vessels that are ready for 
mid-term overhauls.
    So the way the Federal Government can help is the funding 
side of it. I mentioned, not only from the conversion side, but 
we need, on the shoreside, the funding support to build that 
infrastructure that then can fully have those vessels be 
electric.
    Mr. Auchincloss. Thank you.
    And Mr. Garamendi, if you are interested, I am happy to 
yield the rest of my time to you if you wanted to ask questions 
about hydrogen or make any comments about hydrogen.
    Mr. Garamendi. Mr. Auchincloss, that is very generous of 
you.
    I believe that there is a ferry system in the bay area that 
is looking at this hydrogen very seriously, hydrogen being 
available from the various refineries in the area, and then 
using a fuel cell to generate the electricity for the 
propellant for--to propel the ferry.
    I believe, Mr. Murphy, you are aware of this, and working 
with--is it the Red and White Fleet that is working on this--
and if you would care to comment on the potential for it.
    Also in the bay area and, really, around the Nation, there 
are fuel cell companies that are rapidly developing very 
powerful fuel cells. So, Mr. Murphy?
    Mr. Murphy. Yes, thank you, Congressman. There are some 
operators who have invested in a hydrogen vessel that would be 
a great demonstration project in the bay area. It is called the 
Sea Change and would be the first application of its kind. We 
are looking forward to seeing what happens with that. We will 
be involved in, to some extent, how that vessel is operating, 
at least from an analysis standpoint, and maybe more.
    But hydrogen has a lot of potential on longer routes to be 
a zero-emission mode of choice, a zero-emission propulsion 
technology of choice, where electric technology can't quite 
provide enough of a charge to achieve a longer route and the 
speeds necessary to make the travel time accommodated for a 
longer route. Hydrogen is more robust, in terms of being able 
to provide that application.
    Mr. Garamendi. And it is a technology that is readily 
available today. It is a matter of making it applicable to the 
ferry system.
    I wanted to get this on the record. Once again, the Federal 
Government can help with all of these technologies and the 
transition from the carbon-based systems that are presently 
used to these zero-emission systems. That takes us back to the 
INVEST Act, where most of this was already included.
    I thank the chairwoman for making it possible in the INVEST 
Act. ``If only the Senate,'' which seems to be the mantra that 
we are singing so often here.
    With that, Mr. Auchincloss, thank you for the time. Thank 
you.
    Mr. Auchincloss. I appreciate the line of questioning from 
my colleague.
    And Madam Chairwoman, I yield back.
    Ms. Norton. Thank you, Mr. Auchincloss and Mr. Garamendi. I 
now recognize Mr. Johnson for 5 minutes.
    Mr. Johnson, you are recognized.
    Mr. Johnson of Georgia. Thank you, Madam Chair, for holding 
this hearing, and thank you to the witnesses for your time and 
your testimony. Ferries have long served a historic role in 
transportation throughout America, including in my home city of 
Atlanta, where they once enabled residents to cross the 
Chattahoochee River. Today ferries still provide critical 
services in places like Staten Island, New Orleans, and San 
Francisco.
    What is more, ferries reduce our carbon emissions and 
alleviate congestion on roadways. For all of these benefits, 
ferries are vital to our efforts to combat climate change and 
should be incorporated in our infrastructure modernization 
plans.
    Ms. Rubstello, you explained how the pandemic led you to 
increase recruitment and workforce development efforts for 
maritime professionals. What outreach have you conducted to 
ensure equal opportunity employment for Black American workers, 
people of color, and women?
    Ms. Rubstello. Thank you for that question. It has 
definitely been a challenge for us. Pre-pandemic, we were much 
more engaged in the various communities that you mentioned to 
recruit into the industry. We have been just challenged on the 
recruitment front with the pandemic, just dealing with all the 
challenges of students working--or doing school from home, and 
that sort of stuff. But we are ramping that back up again and 
looking at every opportunity to get into those communities.
    I also note that our region--we have a high school that is 
just started up that is focused on the maritime industry. So 
students going through high school are learning about what the 
industry offers, and getting some training so that they are 
ready to step into those roles when they get out of high 
school. So that is a good effort that is underway, and we look 
forward to additional schools like that to grab students at the 
high school level and bring them into our industry.
    Mr. Johnson of Georgia. Thank you. How does the cost of 
higher education, licensing, and entrant qualifications hinder 
equal opportunity, and how can Congress help mitigate the high 
costs?
    Ms. Rubstello. Yes, there are definitely costs for just 
getting in at the lowest level, everything from the security 
requirements that they have to go through, training that has to 
be done before they even have a job. And so, supporting those 
training efforts, subsidizing those expenses so that those who 
don't have the means can pay for daycare, and can pay for their 
lunches while they are at training, so any program that can 
support that is much appreciated.
    Mr. Johnson of Georgia. Thank you. As the maritime industry 
continues to expand, what plans are in place to ensure 
community preservation of minority neighborhoods surrounding 
ports?
    Ms. Rubstello. Well, I think a big piece for us is around 
our going to hybrid electric. Because of the demographics of--
especially in the Seattle area, we know we have lower income 
people living closer to our port and marine industries. And so, 
the more we can be greener, and lower impact on the 
environment, it is best for the communities around us.
    Mr. Johnson of Georgia. Well, how about to actually 
preserve the presence of those neighborhoods surrounding ports, 
to ensure that those people are not displaced?
    Ms. Rubstello. We don't have any issues with displacement, 
but I think supporting the network, the transportation network, 
so that those communities have easy access to good jobs and the 
services that they need is really important.
    Mr. Johnson of Georgia. Thank you. What immediate 
environmental improvements do you anticipate by converting your 
fleet's vessels from diesel to hybrid-electric propulsion?
    And how does that speak to long-term emissions trends in 
the maritime industry? And you just alluded to that.
    Ms. Rubstello. Yes, and I will just highlight, just in the 
conversion, as I mentioned, our three largest vessels, which 
produce the most amount of greenhouse gases, converting those 
is going to improve our emissions by 27 percent. And that 
equates to removing the equivalent of 10,000 cars off the road. 
So just with three vessel conversions we are going to have a 
huge impact to greenhouse gas emissions in our region.
    Mr. Johnson of Georgia. Thank you. And lastly, your 
testimony points to the public-private military partnership for 
the construction and operating of new transit service. How are 
you incorporating outreach to minority-owned businesses, for 
example, those from the Disadvantaged Business Enterprise 
program?
    Mr. Principi. Sure, Congressman----
    Ms. Rubstello. Yes, we are----
    Mr. Principi. Go ahead.
    Ms. Rubstello. Go ahead. Oh, I was just going to mention 
that we, in our State, have a very robust program to do an 
outreach and even a peer-to-peer kind of process to grow that 
industry for the maritime industry. I apologize.
    Mr. Johnson of Georgia. Thank you. And with that I yield 
back, I am out of time.
    Ms. Norton. Thank you, Mr. Johnson. I now recognize Mr. 
Lynch.
    Mr. Lynch, you are recognized for 5 minutes.
    Mr. Lynch. Thank you, Madam Chair. I really do appreciate 
it. I want to thank the panelists for their good work on this 
issue.
    I represent the Port of Boston, so not quite as bad, 
congestion-wise, as Mr. Sires is having in New Jersey, but we 
consider our ferry system a real blessing.
    This year--well, this past August, I think we are up around 
3,000 ferry trips in that month, which is about a 300-percent 
increase from last year, when we were really dealing with COVID 
in a more serious way.
    Ms. Rubstello, I was very interested in your mentioning of 
converting the diesel ferries to electric, and I have been 
following this pretty closely. I actually had a bill that dealt 
with converting diesel buses in the transportation bill and 
converting the entire postal fleet to electric. So, I am very 
much aware of the obstacles and what that will involve.
    But I am also keenly aware of the benefits that that would 
bring. And in the Boston area, our port area, I represent the 
coast, from the North End of Boston, in the city, all the way 
down to Scituate. So that whole area is heavily impacted by the 
ferry system. And, as others have said, and you have said 
already, it takes tens of thousands of cars off the road. It 
opens up the waterfront. We have got an island system that is 
pristine off the coast.
    And so, I am just wondering how far along is the battery 
technology, and are we incorporating that idea in our ferry 
manufacturing system? Are we anticipating and moving away from 
building more diesel-powered ferries, or are we sort of 
anticipating the future, and trying to capitalize on the 
opportunity to go electric, if you will?
    Ms. Rubstello. Thank you for that question. Yes, I mean, I 
think the industry is ripe for it.
    Obviously, Norway is kind of leading the charge, so from an 
international perspective, it is growing. In our local 
industry, there is a lot of emphasis on the innovation around 
the battery concept, and we have been working very closely with 
our local power provider, Seattle City Light, to find the most 
creative ways we can get the energy that we need to deal with 
our hybrid vessels.
    So, I think it is great timing. I think we are poised for 
it. Unfortunately, I think funding keeps us from going faster 
and getting it implemented sooner.
    Mr. Lynch. Right, thank you.
    In closing, I just want to say that we are also grappling 
with shore power. So, I know in Red Hook, in Brooklyn, that 
they have begun a process of, when they bring in their luxury 
liners, they are able to just hook up to shore power, and they 
are not blowing diesel out the stack while they are in port to 
run their operations. And there seems to be an overlap here, 
where bringing shore power to major port cities across the 
country, and the idea of going electric with our ferry systems, 
there seems to be a certain harmony there.
    And I am just wondering if we might be able to piggyback 
those efforts, in terms of funding, because you are right, the 
gap here has been a lack of resources, not a lack of 
imagination or a lack of awareness of the problems that climate 
change bring. But there is a reluctance in, I guess, 
prioritizing that within the menu of responsibilities that we 
have here on the Transportation and Infrastructure Committee.
    But I want to thank the chair, and I want to thank the full 
committee chair, Mr. DeFazio, because he has been an 
outstanding champion of expanding and improving upon our ferry 
systems, not only in the port cities of this country, but also 
our riverine communities, as well, where the ferry systems are 
equally as important.
    So, with that, Madam Chair, I yield back. Thank you.
    Ms. Norton. Thank you very much, Mr. Lynch. I now recognize 
Mrs. Napolitano.
    Mrs. Napolitano, you are recognized for 5 minutes.
    Mrs. Napolitano. Well, I really don't have ferries in my 
district. Thank you, Ms. Chairman. And I am happy to hear what 
the other mode of transportation needs are, and how we can 
help. It is important for us.
    And I would like to yield time to Mr. Garamendi, if he so 
needs it.
    [Pause.]
    Mrs. Napolitano. I guess not. John?
    Ms. Norton. He is not here at the moment.
    Mrs. Napolitano. OK. Well, I just wanted to say that it is 
important for us to hear what the issues are, and what--the 
conversion to electric batteries. We have a [inaudible] buses, 
so we have to be sure we include all modes of transportation in 
our communities, and that we know what those issues are, so 
that we can go ahead and do something to help the rest of the 
travelers be able to go to work, or to go to medical 
appointments, et cetera.
    And I thank you very much. I yield back.
    Ms. Norton. Thank you, Mrs. Napolitano.
    Let me thank each of the witnesses for your testimony 
today. Your comments have been very informative and helpful, 
indeed.
    I noted in my opening remarks that this was the very first 
hearing ever had in the Congress on water transportation. Now 
that really says something. I don't know whether the era of 
climate change has brought us to understand that we have got to 
use every form of transportation, but particularly forms of 
transportation that do not contribute or contribute less to 
climate change. I think the testimony today has shown that 
water transportation has been too unrecognized, and maybe even 
unused by the Congress.
    I ask unanimous consent that the record of today's hearing 
remain open until such time as our witnesses have provided 
answers to any questions that may be submitted to them in 
writing.
    I also ask unanimous consent that the record remain open 
for 15 days for any additional comments and information 
submitted by Members, or witnesses' responses, to be included 
in the record of today's hearing.
    Without objection so ordered.
    The subcommittee hearing is adjourned.
    [Whereupon, at 11:45 a.m., the subcommittee was adjourned.]


                      Submissions for the Record

                              ----------                              


   Prepared Statement of Hon. Peter A. DeFazio, a Representative in 
      Congress from the State of Oregon, and Chair, Committee on 
                   Transportation and Infrastructure
    Thank you, Chair Norton, for holding this hearing. I commend you 
for your leadership of the Subcommittee and for holding hearings on 
important topics that have not had a dedicated hearing in this 
Committee before--tribal transportation, micromobility, and now the 
promise and potential of ferries.
    Ferry service operates in diverse areas of the United States and 
fills a range of needs, including serving commuters and travelers, 
providing emergency services, and maintaining essential connectivity 
for communities. Today's witness panel represents ferry operations that 
cover all of these perspectives.
    In the nation's most populated urban areas, ferries provide an 
alternative to crowded roadways and transit lines, helping to relieve 
congestion and improve mobility. They provide a transportation option 
for those who are unable to drive or unable to afford a car, allowing 
more residents to access jobs and essential services and experience an 
improved quality of life. In Oregon, development of the Frog Ferry 
service on the Willamette River is underway to do exactly this--to 
provide an efficient, clean, and enjoyable travel alternative to the 
Portland region's clogged roadways.
    In other areas, such as Washington State, Maine, and Alaska, 
ferries provide essential connectivity between island and mainland 
communities. In many non-coastal, predominantly rural areas, including 
Kentucky, Montana, Oklahoma, Tennessee, Illinois, and Utah, ferry 
service is equally important. These services provide a crucial lifeline 
for their communities and make the transportation network more 
redundant and resilient, especially when flooding closes roads and 
bridges.
    I am particularly interested to hear testimony from Ms. Rubstello 
regarding Washington State DOT's plans to fully electrify its ferry 
operations. As Chair of this Committee, I have focused intently on ways 
to reduce carbon and hazardous air pollution from our surface 
transportation system. Getting people out of personal vehicles and onto 
public transportation is essential in this effort and supporting public 
transportation options to become zero-emission was a high priority in 
the INVEST in America Act advanced by this Committee.
    Given the diverse needs and uses we will hear about today, federal 
investment should support ferry service across the country. The INVEST 
in America Act boosted by 50 percent the funding for the Federal 
Highway Administration's Ferry Boat Discretionary program and more than 
doubled the funding provided for the Federal Transit Administration's 
Passenger Ferry Grants.
    Unfortunately, while the Senate infrastructure bill provided a good 
boost in investment for ferry transportation, it was not done in an 
equitable manner. The Senate provided $1 billion in guaranteed general 
fund appropriations for rural ferry investments. While I certainly 
support money for essential rural ferry service, this provision was 
crafted to direct money to systems that met a very narrow set of 
criteria. As a result, the U.S. Department of Transportation has told 
the Committee only four operators nationwide qualify for this $1 
billion. So, for example, Mr. Godar's rural ferry operation can't 
access these funds.
    At the same time, the Senate bill flatlined FTA's Passenger Ferry 
grants that provide support to ferry systems in urbanized areas--
meaning the systems that carry large numbers of passengers in congested 
areas including those represented by Ms. Rubstello and Mr. Murphy--are 
left to compete for funding at 2012 levels. And when we talk about 
urbanized area funding, we don't just mean big cities--that includes 
hundreds of smaller towns and communities that must compete for the 
same dollars.
    There's no justification for having hundreds of eligible urban 
areas compete for $150 million over the life of the Senate bill, while 
splitting $1 billion between four rural systems. That is certainly not 
the transformative, once in a generation investment that our nation's 
cities, towns, and rural areas desperately need and it's something we 
should fix going forward.
    I look forward to a robust discussion on this and other topics 
related to ferry transportation today and thank our witnesses for 
joining the panel.

                                 
  Prepared Statement of Hon. Sam Graves, a Representative in Congress 
     from the State of Missouri, and Ranking Member, Committee on 
                   Transportation and Infrastructure
    Thank you, Chair Norton, for holding this hearing, and thank you to 
our witnesses for participating today.
    Generally, the Federal Highway Administration (FHWA) and the 
Federal Transit Administration (FTA) each administer separate programs 
to construct ferry infrastructure, or to establish new service and 
improve existing passenger ferry service.
    The Senate infrastructure bill provides ferry programs with $2.3 
billion, representing an increase of 320 percent.
    Ferries serve diverse areas of the country, much like our rural 
road and bridge network, and these programs need both dedicated 
resources as well as flexibility to address these areas' specific 
transportation needs.
    Ultimately, we must start working together to sustain our core 
highway programs so that they can continue to deliver the resources 
needed for our communities and a national system.
    I look forward to hearing about ferry ridership, technological 
innovations, and challenges identified in implementing ferry boat 
programs.
    Thank you to our witnesses and thank you again for holding this 
hearing.
    I yield back.

                                 
 Prepared Statement of Hon. Eddie Bernice Johnson, a Representative in 
                    Congress from the State of Texas
    Thank you, Highways and Transit Subcommittee Chairwoman Norton, and 
Ranking Member Davis for holding today's hearing. I also want to thank 
our witnesses for your testimony and participation.
    We have heard from our witnesses this morning about the numerous 
benefits that ferries provide to a variety of areas in the nation. They 
have articulated some of the important ways in which ferries provide 
great benefit to the nation, since they not only reduce traffic 
congestion and contribute to clean transit alternatives, but also 
provide an easier means toward accessing critical social services, 
while providing an alternative, easier mode of transit in several 
communities that are cut off from mobility via highway or rail.
    Although the city of Dallas does not operate a ferry system, the 
state of Texas benefits from two key ferry programs: one transports 
people and automobiles from Port Aransas to Harbor Island near the city 
of Corpus Christi, while the other ferry system goes from the port city 
of Galveston to Port Bolivar. The ferries in these areas offer benefits 
to the residents and tourists in that they allow them to avoid 
traveling exclusively on state highways to reach their destination, 
which in turn reduces travel time and fuel consumption. In addition, 
the ferry routes serve as a critical means of evacuation during 
hurricane threats. The Texas ferry system is also the only one in the 
country that does not charge a toll for vehicles and passengers, as the 
Texas Department of Transportation is required to use funding from the 
State Highway Fund for ferry operations.


                                Appendix

                              ----------                              


Questions from Hon. Jenniffer Gonzalez-Colon to Patty Rubstello, P.E., 
  Assistant Secretary, Washington State Department of Transportation, 
                            Ferries Division

    Question 1. In the FAST Act, there was a weighted formula that 
allocated $80 million in annual funding with the following breakdown: 
40 percent for the quantity of passengers, 35 percent for vehicles, and 
30 percent for total route miles for the construction of ferries and 
ferry terminals. Does this provide enough flexibility or would 
something with less restrictions be better such as a block grant?
    Answer. Ferry Systems have extensive, long-lived infrastructure. To 
efficiently and effectively contribute to the maintenance of this 
infrastructure, federal support needs to be predictable, reliable and 
sustained. Approximately 25 percent of Washington State Ferries capital 
and operating budget comes from federal sources.
    The FHWA Ferry Boat Program formula was changed under the FAST Act 
to the following:
      35 percent based on the number of ferry passengers, 
including passengers in vehicles, carried by each ferry system;
      35 percent based on the number of vehicles carried by 
each ferry system; and
      30 percent based on the total route nautical miles 
serviced by each ferry system. [23 U.S.C. 147(d)]

    We support this formula distribution as it provides a predictable 
and reliable flow of federal support for our system, and we would not 
advocate for a change at this time.
    Overall federal support for ferry systems is a combination of 
formula-driven grants and competitive grants. The mixture of formula-
driven programs that provide predictable, reliable and sustained 
funding necessary for strategic investments and competitive grants that 
provide flexibility in directing resources to immediate needs. We 
believe the overall federal approach to supporting ferry systems 
provides for both strategic investment planning and operational 
flexibility.

    Question 2. Ms. Rubstello, in your testimony you discuss utilizing 
technology to access more up-to-date information on ferry service that 
also connects with regional transportation networks, specifically using 
mobile pays to pay for service through regional fare programs and other 
tools.
    I was successful in getting language into the INVEST Act that would 
require projects to include aspects that would reduce trips of single-
person vehicle trips by giving users the ability to plan, use, and pay 
for multimodal transportation alternatives under the Community Climate 
Innovation grant program.
    Simply put, this language could help ferry terminals bridge the 
technological gap to provide critical information such as arrival and 
departure time, capacity, and price when someone is trying to plan 
their daily commute.
    How can communities and entities that operate ferry services like 
yours, and those that I represent best utilize technologies to increase 
ridership of ferry systems?
    Answer. As your Community Climate Innovation grant program 
recognizes, the best way to increase ferry ridership and promote 
multimodal transportation choices is to make riding a ferry as easy and 
convenient as possible. There are several ways technology can promote 
this goal:
      Provide real-time information to travelers. Washington 
State Ferries has a GPS-based real-time map that shows the location of 
its vessels. It also provides terminal-by-terminal information on its 
website that includes traffic cameras, the availability of space to 
drive onto the ferry, and any relevant rider alerts. While WSF's 
technology is not completely seamless and has some limitations, the 
concept of providing real-time information is central to a positive 
customer experience.
         To that end, WSF recently submitted a grant proposal to the 
U.S. Department of Transportation for implementing a ``terminal wait 
time traveler information system'' that would better inform customers 
about wait times/queue lengths at its terminals and integrate the 
different technologies mentioned above.

      Manage transportation demand and congestion. WSF has 
implemented a reservation program on two of its most popular tourist-
based routes to help manage customer demand and provide some 
predictability for both visitors and residents alike. WSF's Long Range 
Plan contemplates expanding the reservation program to other, more 
commute-based routes, but this will require investment in the ferry 
system's technological and physical infrastructure.

      Provide trip-planning and other tools to help facilitate 
ferry travel. Transit partners in the Puget Sound region have been 
discussing the development of a regional trip planning system that 
identifies the best routes for travelers and incorporates all modes of 
transportation, including ferries, buses, vehicle/bike share programs, 
etc. Ideally this would be done via a regional Mobility as a Service 
(MaaS) application that has been successfully deployed in some cities 
across the globe. While this is a significant capital investment that 
requires extensive coordination between many agencies, such a tool 
would promote multimodal travel and the concept of ``door-to-door, 
first mile/last mile'' transportation.
         Ultimately, investments in technology can be as critical as 
investments in vessels, terminals, and other physical infrastructure. 
While it may not be as visible as a new ferry or terminal building, 
these technologies have a significant effect on the usability of the 
system, and therefore on ridership and the customer experience.

    Question 3. In your testimony, to implement every terminal with 
charging equipment will cost $700,000 annually for the next 20 years, 
bringing it to the $280 million total capital investment. How much will 
the complete transition from diesel to Low or No Emission ferries cost 
your agency and how much of that is expected to be supported by the 
Federal government versus state and local taxpayers?
    I ask because Puerto Rico has 5 terminals and 11 ferries currently 
that would need to be replaced and equipped with charging technology to 
achieve similar goals, however there are 478 percent more riders 
contributing to that system then the 500,000 riders so far this year in 
my district. The Puerto Rico Maritime Transportation Authority states 
that it will begin to provide Low-No Emission ferry service in 2026.
    Answer. The WSF System Electrification Plan calls for investment of 
nearly $4B over 20 years to complete 6 vessel conversions, build 16 new 
vessels, and electrify 16 terminals. This investment will enable us to 
reduce our GHG emissions by 76 percent from 2005 levels.
    Our electrification initiative comes at an opportune time given 
that many of our older diesel vessels are due for replacement in the 
near future. WSF appreciates the federal funding programs available for 
these projects. Full implementation of the System Electrification Plan 
will not be possible without substantial federal funding support. 
Sources of recent and anticipated funding include FTA, FHWA, MARAD and 
EPA.

    Question 4. What can this committee and Congress do to ensure that 
there is a robust shipping industry in the United States? I'm a strong 
supporter of the Jones Act, but what can we do to become a net-exporter 
of ferries and ships?
    Answer. U.S. shipbuilding is at a competitive disadvantage for two 
major reasons: first, it is very labor intensive, placing the US at a 
competitive disadvantage worldwide for anything but the smallest 
vessels, and second, its productivity is subject to a substantial 
learning curve, so shipyards with a steady backlog of orders tend to 
become more competitive, while others fall further behind. The Jones 
Act ensures we retain the capability to build essential vessels when 
needed, despite these market forces.
    One example of where the U.S. can be particularly competitive is in 
shipboard systems. These systems rely in modern technology and a highly 
skilled workforce. The U.S. can support American businesses providing 
innovative systems to the shipbuilding market. This includes energy 
storage, automation and control systems, and machine learning.

Question from Hon. Stephen F. Lynch to Patty Rubstello, P.E., Assistant 
   Secretary, Washington State Department of Transportation, Ferries 
                                Division

    Question 1. During the INVEST Act, I included language to ensure 
our nation's transit system, including ferries, is equipped with the 
necessary resources to combat cybersecurity attacks by allowing the 
Secretary of Transportation to enhance cybersecurity systems to 
mitigate these threats. It will also facilitate the procurement of 
cybersecurity experts to assess vulnerabilities and enhance the grant 
recipient's ability to secure updated software packages including 
firewalls and malware protection.
    How have you been protecting your systems from cyberattacks and how 
could new assistance better safeguards ensure safety among your assets?
    Answer. WSDOT's Information Technology Department has teams focused 
on monitoring the WSDOT network and the systems/applications that are 
on that network, along with a Cybersecurity Office that provides 
agency-wide program management and oversight. Standard processes 
include regular scans that identify vulnerabilities, threats, and risks 
within the WSDOT enterprise; coordinating with our vendors to deploy 
software and systems that meet State security requirements; and, 
performing security design reviews for any new software before it can 
be placed on our network. We work closely with the state CIO and state 
CISO to develop guidelines, policies, and procedures that are then 
distributed to our WSDOT employees.
    As for ways to better safeguard our assets there are still more 
things that could be done:
      Additional staffing resources--more staff are needed to 
monitor and address the system vulnerabilities that are identified from 
software packages; deploy more frequent security patches to software 
systems by external vendors as they are constantly trying to address 
new threats; respond to malware attempts via phishing scams; constant 
development of guidelines based on current mandates and industry 
threats; and, focus more time on the increasing internal/external 
audits meant to ensure we are complying with mandates.
      Marine Cybersecurity evaluation and funding ongoing 
needs--thanks to an Urban Areas Security Initiative (UASI) grant we 
will be performing a cybersecurity evaluation of our various vessel 
classes to see how we can better protect them from a cyber-attack while 
opening up the network capabilities to allow our third-party systems to 
be accessed both internally and externally to provide real-time data 
for best performance. This evaluation will identify best practices and 
changes to be made to allow us to advance while maintaining that 
security. It is unknown how much funding will be needed to address any 
recommendations.
      Increased infrastructure funding--additional resources 
are needed to be able refresh infrastructure hardware per industry 
recommendations. Being able to refresh our infrastructure hardware more 
frequently allows us to use procure hardware that incorporated more 
security advancements.
      Eliminating credit card from our systems--Ideally, we 
would like to move our credit card data outside of our systems/
applications that reside at WSDOT through such solutions as 
tokenization. Funding is needed to modify the systems/applications that 
process credit cards as well as setup relationships with vendors to 
manage the tokenization software. This will also require new front-end 
hardware at our point-of-sale devices.

  Questions from Hon. Eddie Bernice Johnson to Patty Rubstello, P.E., 
  Assistant Secretary, Washington State Department of Transportation, 
                            Ferries Division

    Question 1. Transportation is undergoing a revolution in 
automation. We see it today in automated driving systems for passenger 
vehicles, with its eventual potential for full automation. We also have 
had auto-pilot features in commercial airlines for quite some time. 
Where do each of you envision ferries' place in the future automation 
evolution?
    Answer. Auto-pilot features have also been in place on marine 
vessels for quite some time and track control systems have advanced 
significantly over the last decade. The technology exists for a ship to 
be able to theoretically `drive itself' from one port to another with 
very little human intervention. Technology is also advancing around the 
ability to berth a vessel at a dock or terminal which is a key factor 
when considering fully autonomous vessels.
    Advances in artificial intelligence coupled with automation will 
continue to evolve. This will provide much better decision support 
tools, reducing human error and increasing efficiency. Automation also 
has great potential to improve energy efficiency. The voyage planning 
aspect of automation provides for optimal vessel course speed 
throughout the voyage to meet schedule, avoiding excessive distances or 
power when it is not needed. The same technology applied to future 
hybrid electric vessels could reduce the battery sizing requirements as 
well as the amount of energy expended with each crossing.
    Automation would not likely reduce crewing requirements, as the 
main driver for this is passenger safety in the event of an emergency. 
We anticipate that the USCG would need to develop regulation around 
fully automated vessels.

    Question 2. What strategies do each of you believe can be promoted 
by this committee to enable greater use of ferries as a transportation 
option that would aid in the reduction of greenhouse gas emissions?
    Answer. Water transportation has long been proven to be economical 
relative to other modes from a total energy consumption per ton 
perspective. The addition of clean energy technologies over the past 
several years increases this advantage, as vessels can now be fueled 
from renewable energy sources. These include clean hydrogen, renewable 
diesel, and battery energy storage systems. The short repeatable routes 
of most ferry operations generally make battery energy storage systems 
the preferred alternative. Some key strategies to implement this 
solution broadly include:
      Providing federal funding sources and financing options 
to support the large capital investments (vessels, terminals, and 
utilities) required for this transition. We were pleased to see 
Electric Ferry Programs in both the INVEST Act and the Infrastructure 
Investments and Jobs Act. Where essential technologies are not 
available from US manufacturers, temporary relief from Buy America 
should be considered to expedite this transition.
      Supporting ferry systems' efforts to increase ridership 
and empower people to get out of their cars and take public 
transportation. Some of WSF's efforts include improving the customer 
experience through technology. We are implementing tools that allow 
customers to plan their trip, receive real-time information about ferry 
departures and wait times, or have a seamless reservation, ticket-
buying, and payment experience. Investing in technology infrastructure 
just as one would invest in a vessel or terminal building would enrich 
the customer experience and increase ridership, shifting travel modes 
and ultimately lessening the impact on the environment.
      Supporting transit, biking and walking infrastructure to 
and from terminals thereby allowing passengers to use the ferry system 
without a car.
      While we recognize that utilities may not be within the 
jurisdiction of this committee, we encourage Congressional support to 
upgrade shore-based electrical grids to support the large electrical 
loads required by ferry vessels. In some cases, this may require shore-
based energy storage. Priority should be given to utilities that source 
their electricity through renewable sources. In many cases such 
investments can support the electrification of other transportation 
modes (electro-mobility hubs).

 Question from Hon. Rodney Davis to Seamus Murphy, Executive Director, 
 San Francisco Bay Area Water Emergency Transportation Authority (WETA)

    Question 1. In your testimony, you mention difficulties with 
permitting requirements delaying projects.
    What streamlining reforms would be most helpful to progressing 
ferry infrastructure projects and fleet `greening'?
    Answer. Projects in locations where the land meets the water 
require permits from over a dozen regulatory agencies. Most of these 
agencies conduct their review sequentially even though in many cases 
their review can be conducted concurrently. This sequential review 
negatively impacts project schedule. Increased project timelines adds 
to the overall cost of the project. Reforming the permitting process to 
include concurrent review of permits would result in a more efficient 
use of time and could lower the overall project cost.

    Questions from Hon. Jenniffer Gonzalez-Colon to Seamus Murphy, 
      Executive Director, San Francisco Bay Area Water Emergency 
                    Transportation Authority (WETA)

    Question 1. In the FAST Act, there was a weighted formula that 
allocated $80 million in annual funding with the following breakdown: 
40 percent for the quantity of passengers, 35 percent for vehicles, and 
30 percent for total route miles for the construction of ferries and 
ferry terminals. Does this provide enough flexibility or would 
something with less restrictions be better such as a block grant?
    Answer. There are two programs initially authorized under MAP-21 
that are exclusively for the construction of ferry boats and ferry 
terminal facilities: the Section 1121 Federal Highway Administration 
(FHWA) Ferry Funding Formula Program and the Federal Transit 
Administration (FTA) 5307(h) Ferry Discretionary Grant Program. The 
FHWA program funding formula prescribed by MAP-21 was weighted towards 
car ferries and provided for distributing FHWA funds based on (in order 
of importance) the number of vehicles carried, total route miles 
serviced, and the number of passengers carried. While the formula was 
modified under the FAST Act to put more weight on the number of 
passengers carried, the FHWA formula continues to put passenger-only 
ferries at a competitive disadvantage.
    The inequity inherent in the Section 1121 FHWA Ferry Funding 
Formula Program can be offset by FTA 5307(h) Ferry Grant Program if FTA 
awards grants to passenger ferry systems in congested urban areas and 
if the FTA program is funded at an adequate level. This is why it is 
critical that the $1.5 billion that was intended to be included in the 
Senate-passed Infrastructure Investment and Jobs Act for the FTA 
5307(h) Ferry Grant Program is included in whatever final bill is sent 
to the President.

    Question 2. Mr. Murphy, what are the considerations that WETA is 
considering as it prepares to see increased ridership demand after 
adjusting schedules to new markets?
    Answer. Thanks to the federal COVID relief funds WETA began 
implementing a Pandemic Recovery Program in July. The Program is a 
year-long series of fare and service changes focused on incentivizing 
ridership; testing the market for new travel patterns; and maximizing 
the relevance of our service for a new, more equitable post-pandemic 
ridership base.WETA lowered fares and aligned those fares with other 
transit modes. We also added a significant amount of off-peak service 
to accommodate the needs of lower-income, transit-dependent workers who 
could not work from home and who did not follow traditional commute 
patterns. Since we made our July changes, WETA's ridership has 
significantly outpaced other regional carriers and are well ahead of 
our fiscal year ridership projections. We will continue to monitor 
these trends and will use them to inform longer term fare and schedule 
programs designed to maximize ridership among a diverse set of markets 
and reorient the service toward fiscal sustainability.

    Question 3. Will WETA continue to offer low-cost fares to 
neighborhoods and communities that will allow those riders access to 
transit systems? Will their fares be offset with high-priced fares in 
other communities or with Federal funds?
    Answer. WETA continues to monitor the change in ridership trends 
and demographics as a result of the WETA's Pandemic Recovery Program. 
The intention is to continue to offer low fares and not charge a 
premium to ride the ferry. WETA is evaluating what permanent changes 
should be made to ferry service post pandemic so that the cost to ride 
the ferry is not a limiting factor.
    In November 2020, WETA started participating in Clipper START pilot 
program, a regional means-based fare program offering discounted 
transit rides to eligible low-income adults on participating transit 
systems in the Bay Area. The Clipper START pilot allows adults who live 
in the Bay Area whose annual earnings are up to 200 percent of the 
federal poverty level to qualify for fare discounts at participating 
transit agencies. As part of the pandemic recovery program, WETA 
increased the Clipper START discount from 50 percent off paper ticket 
fares to 50 percent off Clipper fares for eligible adults effective 
July 1, 2021. Clipper START is being funded through state funds and 
WETA anticipates participating in the program as long as it stays in 
effect.

    Question from Hon. Stephen F. Lynch to Seamus Murphy, Executive 
    Director, San Francisco Bay Area Water Emergency Transportation 
                            Authority (WETA)

    Question 1. During the INVEST Act, I included language to ensure 
our nation's transit system, including ferries, is equipped with the 
necessary resources to combat cybersecurity attacks by allowing the 
Secretary of Transportation to enhance cybersecurity systems to 
mitigate these threats. It will also facilitate the procurement of 
cybersecurity experts to assess vulnerabilities and enhance the grant 
recipient's ability to secure updated software packages including 
firewalls and malware protection.
    How have you been protecting your systems from cyberattacks and how 
could new assistance better safeguards ensure safety among your assets?
    Answer. WETA is continually assessing our cyber security needs. The 
flexibility included in the INVEST act is helpful for agencies to 
program how federal funds can best be used to enhance cyber security 
systems.

 Questions from Hon. Eddie Bernice Johnson to Seamus Murphy, Executive 
    Director, San Francisco Bay Area Water Emergency Transportation 
                            Authority (WETA)

    Question 1. Transportation is undergoing a revolution in 
automation. We see it today in automated driving systems for passenger 
vehicles, with its eventual potential for full automation. We also have 
had auto-pilot features in commercial airlines for quite some time. 
Where do each of you envision ferries' place in the future automation 
evolution?
    Answer. WETA is excited to see the evolution of automated 
technology and how it can be applied to public transit, including water 
transit. We recognize that other industries are looking closely at 
automation, and we are monitoring these developments and lessons 
learned.

    Question 2. What strategies do each of you believe can be promoted 
by this committee to enable greater use of ferries as a transportation 
option that would aid in the reduction of greenhouse gas emissions?
    Answer. Providing additional federal funding is the biggest need. 
Over the last two years WETA has developed a plan to be a leader for 
the reduction of greenhouse gas emissions from commercial harbor craft 
sector. Our plan commits to transitioning 50 percent of our vessel 
fleet to zero emission technology. We are proactively going above and 
beyond current federal and state regulations to reduce emissions, but 
we need funding to implement it.

Questions from Hon. Jenniffer Gonzalez-Colon to Hon. Frank J. Principi, 
    Chairman, M-495 Fast Ferry Stakeholder Group, Northern Virginia 
                          Regional Commission

    Question 1. In the FAST Act, there was a weighted formula that 
allocated $80 million in annual funding with the following breakdown: 
40 percent for the quantity of passengers, 35 percent for vehicles, and 
30 percent for total route miles for the construction of ferries and 
ferry terminals. Does this provide enough flexibility or would 
something with less restrictions be better such as a block grant?
    Answer. There is a more fundamental barrier to new ferry service--
access to funds in the first place. The federal grant funding programs 
such as Federal Transit Administration (FTA); Federal Highway 
Administration (FHWA); and Maritime Administration (MARAD) are 
distributed primarily to existing service, not new service as we are 
proposing in the National Capital Region (NCR). As a result, FTA grant 
funds are distributed to existing services primarily operating in New 
York, Washington, and California. Congress should direct these federal 
agencies to award grant funds to both new and existing services in a 
greater number of states. Further, Congress should require the federal 
programs to allow these funds to be invested in operations and capital 
projects, not just the latter. The private sector is very willing to 
launch new service if the federal government shares the operational 
risks of a new service.

    Question 2. Mr. Principi, how would the military participate in a 
public-private-military partnership, would this be done through 
existing authorities?
    Answer. Yes, existing authorities would be used to allow the 
military to participate in public private partnerships, some of the 
military bases in the NCR are eager to participate in new ferry service 
through existing legal authorities and grant programs. For example, 
Joint Base Anacostia Bolling is considering the use of a real estate 
agreement with the government entity, enabling our service to drop-off 
and pick-up base employees. Our organization has applied (but not 
awarded), Defense Community Infrastructure Program (DCIP) funds that 
will help offset the cost of JBAB's shore-side infrastructure, e.g., 
terminal enhancements to ensure physical security needs. The Town of 
Indian Head, Maryland is considering an Enhanced Use Lease for a piece 
of property to use as a terminal site for the ferry service system. The 
ferry service would help the bases with parking and provide congestion 
relief at the gates during peak rush.
    In the NCR, twenty-five percent (25 percent) of the Single Occupant 
Vehicles (SOVs) are due to DoD military, civilian, and/or contractors 
going to work. However, we are not able to use public funding on a 
federal installation. Most bases have very limited transit access and 
being able to provide an alternative to SOVs would greatly help the 
region with congestion and provide a more stress-free commuting 
experience for the people we are depending on to protect our county.
    Once our service is operational, we plan for area military bases to 
participate in the governance of the service. Most of the military 
bases are along the Potomac River and to provide a more comprehensive 
transit services for our capital region military, civilians and 
contractors working on these bases, we would like to interface with 
already existing land transportation systems such as Metrorail and 
cross river service connecting the airport and employment centers along 
with the Pentagon. Ultimately our longer-term vision is to provide 
water links between DC, Maryland and Virginia and military 
installations on the Potomac and the Anacostia including the Navy Yard, 
JBAB, Fort Leslie McNair, Pentagon, Fort Belvoir, Indian Head and 
Marine Corps Base Quantico.

    Question from Hon. Stephen F. Lynch to Hon. Frank J. Principi, 
    Chairman, M-495 Fast Ferry Stakeholder Group, Northern Virginia 
                          Regional Commission

    Question 1. During the INVEST Act, I included language to ensure 
our nation's transit system, including ferries, is equipped with the 
necessary resources to combat cybersecurity attacks by allowing the 
Secretary of Transportation to enhance cybersecurity systems to 
mitigate these threats. It will also facilitate the procurement of 
cybersecurity experts to assess vulnerabilities and enhance the grant 
recipient's ability to secure updated software packages including 
firewalls and malware protection.
    How have you been protecting your systems from cyberattacks and how 
could new assistance better safeguards ensure safety among your assets?
    Answer. Commuter ferry service currently is not operational in the 
NCR. As such, we do not have systems in place that may be subject to 
cybersecurity attacks. That said, we agree with your assertion that all 
transit services in this country should have access to the resources 
necessary to plan for, respond to, and recover from cybersecurity 
threats. We also agree that federal agencies should partner with both 
public transit systems and private sector leaders in both transit and 
cybersecurity to address these vulnerabilities, including access to 
training, audits, and software packages. Additional funding is needed 
to secure the updated software packages with cyber security included as 
a foundational element and not an add-on. We want to note that these 
are not idle threats, a cyberattack on TransLink in Vancouver, BC in 
December 2020 (https://www.translink.ca/about-us/about-translink/cyber-
incident) affected both customer facing and administrative/operational 
systems. TransLink's procurement portal was shut down for an extended 
period due to the attack. The threat is serious and very real.

 Questions from Hon. Eddie Bernice Johnson to Hon. Frank J. Principi, 
    Chairman, M-495 Fast Ferry Stakeholder Group, Northern Virginia 
                          Regional Commission

    Question 1. Transportation is undergoing a revolution in 
automation. We see it today in automated driving systems for passenger 
vehicles, with its eventual potential for full automation. We also have 
had auto-pilot features in commercial airlines for quite some time. 
Where do each of you envision ferries' place in the future automation 
evolution?
    Answer. The evolution from automated to autonomous ferry vessel 
industry is underway in the US and overseas. Vessels are equipped with 
sensors, automated navigation and docking, propulsion, and auxiliary 
systems to name a few. Crewless vessels on the West coast of Norway (an 
area prohibiting emissions) are now being considered for passenger/
vehicle services. While the driver for autonomous vessels is cost 
reductions (labor costs are the largest expense of ferry systems), 
human factors are typically the primary reason for safety incidents. 
While our current efforts are not focused on concepts of autonomous 
control or more autonomous assistance for vessel navigation, we are 
working to ensure that systems adopted are adaptable to more automated 
control as it becomes available. Our present focus has been on 
exploration of emission free propulsion systems that could add to the 
resiliency of the NCR transportation system without adding to emissions 
in the region.

    Question 2. What strategies do each of you believe can be promoted 
by this committee to enable greater use of ferries as a transportation 
option that would aid in the reduction of greenhouse gas emissions?
    Answer. Clearly, the Committee must first instruct the federal 
agencies to fund new commuter ferry service (current grant programs are 
directed to existing services). Further, these federal agencies must be 
willing to award grant funds to help subsidize ferry operations--just 
as the agency does for bus, rail, and subway services. These two steps 
would cause the private sector to also invest in new ferry service and 
help make a go of it. The promise of new funding will enable all 
parties to put in place a fleet of zero-emission vessels.
    The Department of Homeland Security through the United States Coast 
Guard is already moving to aggressively consider alternate zero-
emission propulsion in vessel design regulations. But the fact remains 
the US is far behind development and investment in this strategy 
compared to Norway and Sweden. We would prefer to see funding directed 
to the USCG to bolster resources to advance the regulatory framework 
for zero emission technology and funding specifically directed to the 
National Academy of Sciences, Transportation Research Board to advance 
research and development of commercially viable zero emission 
propulsion packages for high-speed passenger ferries such as those in 
use in the waterways around New York, Puget Sound, and San Francisco 
Bay. Presently, this large and growing fleet of passenger ferries all 
operate on carbon-based fuels and continue to contribute daily to 
greenhouse gas emissions.
    Finally, in addition to funding, support, and direction from the 
Committee towards the already established and effective federal 
financing vehicles will be beneficial to the greater use of ferries as 
a transportation option. For example, the Transportation Infrastructure 
Finance and Innovation Act (TIFIA) financing program provides 
comprehensive and supportive financing for infrastructure projects 
across surface, air, and transit asset classes. We believe that 
utilization of this program under the Build America Bureau provides the 
kind of lending power critical to project financing, project delivery, 
and in this case reduction of greenhouse gas emissions through expanded 
ferry transit in the NCR and in the United States and ask that you 
continue to support programs like these in providing a critical role 
for infrastructure.

  Questions from Hon. Jenniffer Gonzalez-Colon to Kyle Godar, County 
                   Engineer, Calhoun County, Illinois

    Question 1. In the FAST Act, there was a weighted formula that 
allocated $80 million in annual funding with the following breakdown: 
40 percent for the quantity of passengers, 35 percent for vehicles, and 
30 percent for total route miles for the construction of ferries and 
ferry terminals. Does this provide enough flexibility or would 
something with less restrictions be better such as a block grant?
    Answer. The percentages used to allocate funding is not something 
that I feel needs to be changed. The flexibility we need is in terms of 
what work is determined to be eligible by FHWA.

    Question 2.a. Can you describe the ownership structure that's 
preventing the access road that connects the Golden Eagle terminal with 
the nearest Federal-aid highway and what the Federal Highway 
Administration's guidance says that prevents Federal funding for you?
    Answer. The section of roadway that connects the USACE land and 
dock to the Federal-aid highway has only been recorded as a private 
easement. It has been used as a public road and the tolls collected 
through the contract with Calhoun County have been used to maintain it. 
These tolls are considered public funds since they are in control of 
the County Board although the private company administers them. The 
roadway needs to be properly acquired and the ROW recorded which is 
part of what we desire to do with the FBP funds. The issue is also that 
there is no Missouri based Highway Authority that is willing to take on 
the project and inherit more roadway.
    The FAST Act provides funding for Terminal Facilities. I believe 
the FHWA then further defines a terminal facility as follows. 
``Terminal Facility. A ferry terminal facility includes the structures 
and amenities that directly serve the ferry boat operation. These 
include passenger parking, ticketing, waiting area, boarding and 
disembarking facilities, docks, slips, dolphins and shore improvements 
necessary for docking, administrative space specifically for on-site 
ferry administration and vessel crew, and ferry vessel maintenance 
facilities. It does not include approach roads to the terminal 
facility.''

    Question 2.b. Follow up: In Puerto Rico, we utilize Public-Private-
Partnerships (P3s) in which the terminal is owned by the Maritime 
Transportation Authority and the operation and vessels are contracted 
out through a separate company. Is that a similar structure or option 
for service in your area?
    Answer. At this time our terminal is not covered by the local port 
authority. Since my testimony was provided, it has led to various 
discussions with other agencies and we are now working with America's 
Central Port and investigating a potential expansion of their territory 
and how that could help resolve our issues.

    Question 3. What would it take for ``approach roadways'' to be 
added to the Federal Air highway system? Is this a local decision, does 
it require legislation, or can it be done through a rule making at 
F.H.W.A.?
    Answer. I believe a local Missouri based highway authority could 
make the decision to take in this section of roadway. At this time no 
Missouri based highway authority is willing to take on the extra 
roadway. We are currently looking into getting America's Central Port 
involved as mention above. The other possibility would be to get a 
determination from the Secretary as the FHWA guidance includes the 
following statement. ``Majority publicly owned--Ferry boat or terminal 
facility is more than 50 percent owned by a public entity and the 
Secretary determines that such ferry boat or terminal facility provides 
substantial public benefits.''

    Question 4.a. Because of the one-size-fits-all approach to funding 
for ferries, how much funding has lapsed because of eligibility issues?
    Answer. According to FHWA website $18.6 Million of the $73.4 
Million of available funds for 2018 have not been allocated and should 
have been withdrawn on September 30th 2021.

    Question 4.b. Follow up: How could this committee work to expand 
eligibility for the ferries and the service you provide to improve this 
for operations across the country?
    Answer. Where privately owned operators are involved the local 
public agency that controls the tolls is supposed to review the cost 
incurred by the private operator and set the toll accordingly. In some 
areas where commuters utilize ferries to reduce vehicular miles 
traveled each driver decides which option is cheaper for them. If tolls 
get too high then commuters just drive. If available funds could be 
used to subsidize the private operator to a point that keeps tolls cost 
effective for drivers it could keep some of the smaller operations 
competitive and in business resulting in fewer vehicular miles 
traveled. The current legislation states the funds are for 
``Construction'' and are not available for operations. This may not be 
applicable to many of the ferry operations across the country but could 
benefit our locations.

  Question from Hon. Stephen F. Lynch to Kyle Godar, County Engineer, 
                        Calhoun County, Illinois

    Question 1. During the INVEST Act, I included language to ensure 
our nation's transit system, including ferries, is equipped with the 
necessary resources to combat cybersecurity attacks by allowing the 
Secretary of Transportation to enhance cybersecurity systems to 
mitigate these threats. It will also facilitate the procurement of 
cybersecurity experts to assess vulnerabilities and enhance the grant 
recipient's ability to secure updated software packages including 
firewalls and malware protection.
    How have you been protecting your systems from cyberattacks and how 
could new assistance better safeguards ensure safety among your assets?
    Answer. Our ferry system does not utilize internet connections or 
have a need for cyber security investments.

    Questions from Hon. Eddie Bernice Johnson to Kyle Godar, County 
                   Engineer, Calhoun County, Illinois

    Question 1. Transportation is undergoing a revolution in 
automation. We see it today in automated driving systems for passenger 
vehicles, with its eventual potential for full automation. We also have 
had auto-pilot features in commercial airlines for quite some time. 
Where do each of you envision ferries' place in the future automation 
evolution?
    Answer. I do not believe automation would be applicable to our 
ferry system. The rivers in our area experience rapidly changing water 
levels, current flows, debris, and other issues that would make 
automation difficult and not a cost effective option.

    Question 2. What strategies do each of you believe can be promoted 
by this committee to enable greater use of ferries as a transportation 
option that would aid in the reduction of greenhouse gas emissions?
    Answer. As I stated above in my answers to Congresswoman Jenniffer 
Gonzalez-Colon, if available funds could be used to subsidize the 
private operator to a point that keeps tolls cost effective for drivers 
it could keep some of the smaller operations competitive and in 
business resulting in fewer vehicular miles traveled. The current 
legislation states the funds are for ``Construction'' and are not 
available for operations. This may not be applicable to many of the 
ferry operations across the country but could benefit our locations.

    Question 3. Mr. Godar, you mention in your testimony that guidance 
provided by the Federal Highway Administration and some of the 
eligibility requirements associated with the Ferry Boat Program funds 
have made it so that your county is unable to use this funding as you 
need to. Is there anything in particular that you think the 
Transportation and Infrastructure Committee could do to provide 
assistance with this issue?
    Answer. The current language in the Fast Act provides funding for 
``construction of ferry boats and ferry terminal facilities''. Language 
could possibly be added to more clearly define the terminal facility to 
include any approaches to landings that are maintained by the operator 
out of funds derived from tolls collected or that are owned and 
maintained by a Port Authority.

    Question 4. Mr. Godar, you testified that many ferry operations 
have had maintenance to major components of their publicly owned 
vessels determined ineligible. Do you have any recommendations as to 
how the committee could work jointly with the U.S. Coast Guard to 
address this problem?
    Answer. Language could be added to allow funding for not only 
``Construction'' of ferry boats but also include maintenance of major 
components of the boats.

                             [all]