Chao, 'ideal candidate' to lead DOT, emphasizes safety, funding innovation

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Fleet Owner  /  January 12, 2017

Well connected nominee breezes through confirmation hearing

Trucking didn’t get much of a preview of industry-specific priorities for the Trump administration but, if the Senate confirmation hearing for the Transportation Secretary nominee is any indication, whatever the incoming occupant of the White House wants in terms of planes, trains, and automobiles will be capably delivered to Congress by a smooth and well regarded insider.

Indeed, space transportation—and even the relayed well-wishes from Chao’s “dear friends,” several senators’ wives—got more floor time than trucking issues in the Commerce Committee’s three-hour chummy chat with nominee Elaine Chao on Wednesday.

That the hearing provided a platform for committee members to roll out their own transportation wish-lists rather than to challenge Chao’s credentials and President-elect Trump’s plans comes as no surprise: Chao led the Labor Department under George W. Bush and she has held other high-level political appointments. And she’s married to Senate Majority Leader Mitch McConnell (R.-KY), who introduced Chao at the hearing.

In short, she’s the “ideal candidate” to lead the DOT, as Commerce Chairman John Thune said to open the hearing.

For her part, Chao outlined broad goals but offered few details of how DOT under her leadership would achieve them.

“The U.S. Department of Transportation has a rare opportunity to shape the transformation of our critical infrastructure,” she said in her opening statement. “First and foremost, safety will continue to be the primary objective.”

Chao emphasized that infrastructure is the “underpinning” of the U.S. economy—yet the nation’s prosperity is jeopardized by “infrastructure in need of repair, the specter of rising highway fatalities, growing congestion, and by a failure to keep pace with emerging technologies.”

Regarding Trump’s promised trillion-dollar construction program, Chao spoke several times of the need to “unleash the potential for private investment” and to supplement direct federal funding with “innovative financing tools” such as public-private partnerships. She assured the committee that she would keep Congress informed on the administration’s infrastructure plans through “continual and constant dialog,” and that such an ambitious program would be a “heavy lift” requiring bipartisan cooperation with the White House.

As for regulations, federal rules “should be rooted in analysis derived from sound science and data, with risk-based analysis that prevents accidents before they happen, and considers both the costs and the benefits of new rulemakings.”

For trucking specifically, Sen. Deb Fischer pointed to the FAST Act reforms of the Federal Motor Carrier Safety Administration—designed to make the regulatory process “more transparent, responsive, and open to input from stakeholders—and questioned Chao on “the best way” to keep passengers and freight moving across the transportation system, and to prevent DOT regulations from becoming “a burden.”

“The great challenge for all regulators is to balance the ultimate goal of safety, but also to make sure the regulations are based on sound science and true data, and that the underlying analysis is solid,” Chao said.

Fischer added that she looked forward to working with Chao to find solutions to problems such as the truck driver shortage.

With regard to the Trump administration’s position on greenhouse gas regulations, such as the recent Phase 2 regulation of heavy-duty truck emissions, Chao said she was “not very familiar” with current DOT vehicle emissions initiatives and climate change issues.

Not discussed in the hearing, but featured in her questionnaire for nominees, Chao emphasized the “first step” importance of identifying and hiring “the best people possible” for the positions that will be open in incoming administration.

With the transition, several top leadership roles at FMCSA are now open and awaiting political appointees. According to the Plum Book, a directory of administration positions, those top jobs include Administrator, Chief Counsel , Director of Communications, and Director of Congressional Affairs.

FMCSA Spokesman Duane DeBruyne confirmed for Fleet Owner that Deputy Administrator Daphne Jefferson, who serves as the Agency’s senior-ranking career employee—and absent of any temporary executive staffing appointment by the new administration—would automatically assume the both the duties and the full responsibilities of the FMCSA Administrator. 

“There is a clear and well established protocol for ensuring a seamless continuity of operations during a change in executive leadership,” said DeBruyne, who has served under four of FMCSA’s five Senate-confirmed administrators since the agency’s establishment in 2000. “Come Monday morning, Jan. 23, 2017, everyone in headquarters and in our service centers and in our field offices will be back at work – focused on truck and bus safety, reducing injuries and saving lives.”

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Chao Pitches Private Infrastructure Investment in Confirmation Hearing

Heavy Duty Trucking  /  January 11, 2017

During her Senate confirmation hearing on Jan. 11, Elaine Chao unequivocally signaled her willingness to cooperate with Congress to enact the trillion-dollar infrastructure investment plan floated by President-elect Trump if she is indeed confirmed as the next secretary of transportation.

In her written testimony and in reply to questions posed by Senators from both sides of the aisle, Secretary Chao advocated strongly for “unleashing the potential for private investment in our nation’s infrastructure.”

Chao also affirmed that safety would remain DOT’s “primary objective” on her watch and asserted that, in her view, regularity decisions should be “based on sound science with solid underlying data.”

From start to finish of her three-and-a-half hour appearance before the Senate Commerce Committee, Chao was poised and certain in her remarks, as might be expected from someone who has already held Cabinet rank. Chao served as secretary of labor throughout both terms of President George W. Bush; she received her first major executive appointment as deputy secretary of transportation under President George H.W. Bush.

Members from both side of the aisle on the committee, which is known for its bipartisan bonhomie, lobbed little more than softballs at Chao and were largely satisfied with her oft-repeated response to one concern or another that she would “look forward to working with you on that if I am confirmed as secretary.”

Early in the hearing, Chao said she would form a task force to implement the “Trump vision for infrastructure.” She had no details to share on the Trump infrastructure plan. However, Chao stressed that she would seek to have DOT work with Congress to “develop the details” of that still nebulous plan.

More significantly, Chao emphasized the “significant difference between traditional program funding and other innovative financing tools, such as public-private partnerships.” Chao said getting private capital flowing into infrastructure projects will require “incentivizing” equity firms, pension funds, and endowments to invest in “a bold new vision” for building highways and other infrastructure.

She spoke of creating “a mix of practical solutions—both public and private-- that provide the greatest cost-benefit to the public. It’s also important to recognize that the way we build and deliver projects is as important as how much we invest. We want to seek your advice in identifying and addressing unnecessary bottlenecks" that affect transportation projects.

Referring to DOT’s primary goal of ensuring safe transportation, Chao said that necessary regulations needed to be “derived from sound science and data with risk-based analysis that prevents accidents before they happen” and that weighs both costs and benefits. 

Chao also commented on emerging transportation technologies. She applauded the private sector for driving such innovative developments as drones and both autonomous cars and trucks. She said DOT should work with Congress “to position the federal government as a catalyst for safe, efficient technologies, not as an impediment.”

Summing up, Chao said she sees DOT as being responsible for “modernizing our transportation systems, strengthening our country’s competitiveness, and improving our quality of life.”

“To my colleagues, I would say that, if you were to imagine an ideal candidate to tackle these challenges, it would be hard to come up with a more qualified nominee than the one before us,” said Committee Chairman John Thune (R-SD) in his opening remarks at Chao’s hearing.

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