[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] REVIEW OF THE FAA'S PROGRESS IN IMPLEMENTING THE FAA MODERNIZATION AND REFORM ACT ======================================================================= (113-15) HEARING BEFORE THE SUBCOMMITTEE ON AVIATION OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ MAY 16, 2013 __________ Printed for the use of the Committee on Transportation and Infrastructure [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation _____ U.S. GOVERNMENT PRINTING OFFICE 80-937 PDF WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE BILL SHUSTER, Pennsylvania, Chairman DON YOUNG, Alaska NICK J. RAHALL, II, West Virginia THOMAS E. PETRI, Wisconsin PETER A. DeFAZIO, Oregon HOWARD COBLE, North Carolina ELEANOR HOLMES NORTON, District of JOHN J. DUNCAN, Jr., Tennessee, Columbia Vice Chair JERROLD NADLER, New York JOHN L. MICA, Florida CORRINE BROWN, Florida FRANK A. LoBIONDO, New Jersey EDDIE BERNICE JOHNSON, Texas GARY G. MILLER, California ELIJAH E. CUMMINGS, Maryland SAM GRAVES, Missouri RICK LARSEN, Washington SHELLEY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts CANDICE S. MILLER, Michigan TIMOTHY H. BISHOP, New York DUNCAN HUNTER, California MICHAEL H. MICHAUD, Maine ERIC A. ``RICK'' CRAWFORD, Arkansas GRACE F. NAPOLITANO, California LOU BARLETTA, Pennsylvania DANIEL LIPINSKI, Illinois BLAKE FARENTHOLD, Texas TIMOTHY J. WALZ, Minnesota LARRY BUCSHON, Indiana STEVE COHEN, Tennessee BOB GIBBS, Ohio ALBIO SIRES, New Jersey PATRICK MEEHAN, Pennsylvania DONNA F. EDWARDS, Maryland RICHARD L. HANNA, New York JOHN GARAMENDI, California DANIEL WEBSTER, Florida ANDRE CARSON, Indiana STEVE SOUTHERLAND, II, Florida JANICE HAHN, California JEFF DENHAM, California RICHARD M. NOLAN, Minnesota REID J. RIBBLE, Wisconsin ANN KIRKPATRICK, Arizona THOMAS MASSIE, Kentucky DINA TITUS, Nevada STEVE DAINES, Montana SEAN PATRICK MALONEY, New York TOM RICE, South Carolina ELIZABETH H. ESTY, Connecticut MARKWAYNE MULLIN, Oklahoma LOIS FRANKEL, Florida ROGER WILLIAMS, Texas CHERI BUSTOS, Illinois TREY RADEL, Florida MARK MEADOWS, North Carolina SCOTT PERRY, Pennsylvania RODNEY DAVIS, Illinois VACANCY ------ Subcommittee on Aviation FRANK A. LoBIONDO, New Jersey, Chairman THOMAS E. PETRI, Wisconsin RICK LARSEN, Washington HOWARD COBLE, North Carolina PETER A. DeFAZIO, Oregon JOHN J. DUNCAN, Jr., Tennessee ELEANOR HOLMES NORTON, District of SAM GRAVES, Missouri Columbia BLAKE FARENTHOLD, Texas EDDIE BERNICE JOHNSON, Texas LARRY BUCSHON, Indiana MICHAEL E. CAPUANO, Massachusetts PATRICK MEEHAN, Pennsylvania DANIEL LIPINSKI, Illinois DANIEL WEBSTER, Florida STEVE COHEN, Tennessee JEFF DENHAM, California ANDRE CARSON, Indiana REID J. RIBBLE, Wisconsin RICHARD M. NOLAN, Minnesota THOMAS MASSIE, Kentucky DINA TITUS, Nevada STEVE DAINES, Montana SEAN PATRICK MALONEY, New York ROGER WILLIAMS, Texas CHERI BUSTOS, Illinois TREY RADEL, Florida CORRINE BROWN, Florida MARK MEADOWS, North Carolina NICK J. RAHALL, II, West Virginia RODNEY DAVIS, Illinois, Vice Chair (Ex Officio) BILL SHUSTER, Pennsylvania (Ex Officio) CONTENTS Page Summary of Subject Matter........................................ iv TESTIMONY Hon. Michael P. Huerta, Administrator, Federal Aviation Administration................................................. 8 PREPARED STATEMENTS AND ANSWERS TO QUESTIONS FOR THE RECORD SUBMITTED BY WITNESSES Hon. Michael P. Huerta: Prepared statement........................................... 22 Answers to questions from the following Representatives: Hon. Frank A. LoBiondo, of New Jersey.................... 35 Hon. Sam Graves, of Missouri; responses include ``A White Paper on the National Aeronautical Charting Office (NACO) High Performing Organization (HPO),'' Federal Aviation Administration (June 30, 2008)................ 56 Hon. Rodney Davis, of Illinois........................... 124 Hon. Rick Larsen, of Washington.......................... 126 Hon. Andre Carson, of Indiana............................ 131 Hon. Ann Kirkpatrick, of Arizona......................... 138 SUBMISSIONS FOR THE RECORD Hon. Larry Bucshon, a Representative in Congress from the State of Indiana, request to submit letter from the Indiana congressional delegation to Hon. Ray LaHood, Secretary, U.S. Department of Transportation and Hon. Michael P. Huerta, Administrator, Federal Aviation Administration, which urges Mr. LaHood and Mr. Huerta to consider the application of the Ohio/ Indiana Unmanned Aircraft Systems Center and Test Complex to serve as one of the six Unmanned Aircraft Systems test sites required by the FAA Modernization and Reform Act of 2012....... 5 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] REVIEW OF THE FAA'S PROGRESS IN IMPLEMENTING THE FAA MODERNIZATION AND REFORM ACT ---------- THURSDAY, MAY 16, 2013 House of Representatives, Subcommittee on Aviation, Committee on Transportation and Infrastructure, Washington, DC. The subcommittee met, pursuant to call, at 2:54 p.m., in Room 2167, Rayburn House Office Building, Hon. Frank A. LoBiondo (Chairman of the subcommittee) presiding. Mr. LoBiondo. The committee will come to order. Good afternoon. Apologies. Series of votes. Longer than expected. Yada, yada, yada. But we apologize. As a followup to our February hearing we are again going to attempt to examine what progress the FAA has made in implementing the Modernization and Reform Act that was signed into law on February 14th of 2012. The reform act was passed after 5 years--5 excruciating years--of short-term extensions, but it created a stable 4-year framework for the FAA, industry, and other stakeholders. The act makes important reforms to the aviation system and to the FAA in order to increase efficiency and modernize the system, and ensures that we maintain a safe, modern, and efficient civil aviation system for now and into the future. Ensuring implementation of the FAA reauthorization is and will remain a top priority of the subcommittee. NextGen is a central part of the reform law. I am extremely fortunate to represent New Jersey's Second Congressional District, which happens to include the FAA's premier technical center. So I have seen firsthand the work that goes on there and I have been able to learn more about why NextGen is important to the FAA, the aviation industry, and the traveling public. What has become clear is that we must attempt to do more-- we must do more--to provide certainty for the FAA and the stakeholders, which is why the reform act requires the FAA to appoint a chief NextGen officer for a term of 5 years. This is going to help with the technology and accelerates deployment of the performance-based navigation procedures for large, medium, and small airports. The reform act also requires the FAA to include FAA employees, such as air traffic controllers, in the modernization process, and requires the FAA, with input from the industry, to identify operational incentives to encourage the aviation industry to equip with necessary avionics. The FAA is making progress with some of these efforts, and I want to thank Administrator Huerta for his efforts. But we know that we still have a long way to go together. Since the subcommittee's last hearing, the Aviation Subcommittee has held the first in a series of listening sessions broadly focused on implementation of NextGen. We were able to hear from industry stakeholders about various issues of concern in the implementation of NextGen air traffic control procedures. Next week we are holding a second NextGen listening session. This will give the subcommittee an opportunity to hear from the FAA and industry stakeholders in a less formal setting. We, of course, intend to use what we learn in the listening sessions to help us, industry, and FAA achieve near- term real world benefits, measurable benefits from NextGen. Today, I look forward to hearing from Administrator Huerta what the plan is for the FAA to fully implement the reform act. In particular, I am interested in learning how the FAA is complying with the various safety modernization, reform, and good governance provisions included into law. The FAA has had some successes in implementing the act. However, similar to NextGen, the FAA has also faced some challenges and is behind on some of its deadlines. Administrator Huerta will testify that the FAA is on track to meet or has met 80 percent of the deliverables, including the FAA reauthorization law, and has currently completed half of that. But I think, Mr. Huerta, even you would agree that not all of the reauthorization requirements are created equal. The FAA has yet to complete some of the most important and challenging requirements of the law, including the Unmanned Aircraft Systems, UAS, integration plan to allow for safe integration of UAS by 2015. The small UAS rulemaking, the facility realignment and consolidation plan, and reforming and streamlining certification processes. Completion of these requirements are delayed. And I look forward to hearing from Administrator Huerta on what we can expect, when we can expect to see more progress, and what we may be able to do to help be a force multiplier for you. Before we turn to Administrator Huerta for a statement, I would like to ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous material for the record of this hearing. Without objection, so ordered. Mr. LoBiondo. I now would like to yield to Mr. Larsen for any statement you may have. Mr. Larsen. Thanks, Chairman LoBiondo, for calling today's hearing to review the FAA's progress in implementing the reauthorization law. For the past several weeks, budget sequestration and its effect on the FAA have distracted the subcommittee's oversight on reauthorization. And I just want to make a few brief remarks on that and refocus on the agency's implementation of FAA reauthorization, which contains several important provisions. First, last month we took action to end air traffic controller furloughs and airline delays throughout the system. That said, the public should understand that this action was only a temporary solution. Sequestration will have lingering effects this fiscal year that we need to better understand, and the bill ending the furloughs that passed last month does come at a cost. Lost funding for the Airport Improvement Program means less investment in our Nation's airports and less long- term competitiveness for our economy. Our country already does not have a top 25 airport, according to annual rankings that came out last month, and cutting AIP makes that climb tougher. Moreover, if we don't pass or enact a longer term comprehensive and balanced solution to cut the deficit and end sequestration, then none of my colleagues should act surprised when we are backed into another crisis in the aviation sector this October. Mr. Chairman, a key feature of the FAA reauthorization law was the new policy direction it provided for the FAA's NextGen initiative and development of new technologies. The subcommittee must provide vigorous oversight to ensure these provisions are effectively implemented. For example, theFAA reauthorization sought to increase leadership and accountability over NextGen by creating a chief NextGen officer position. Congress created this position to break through bureaucratic barriers at the FAA and to unify the agency's NextGen efforts, but it has been vacant for over a year. So I am pleased that yesterday the administration announced that it would appoint a new deputy administrator who will fill the role of chief NextGen officer. Section 212 of the reauthorization requires the FAA to implement more fuel-efficient, performance-based navigation procedures at the Nation's top 35 airports and to report to Congress on its progress. Yet to date the FAA has not produced the implementation plan and the report required by law that is several months overdue. The FAA is also working with the RTCA NextGen Advisory Committee and industry stakeholders to analyze nontechnical barriers to implementing performance-based navigation. I look forward to hearing an update from Administrator Huerta regarding the FAA's efforts to implement these procedures. Aviation manufacturing and technology development are major economic drivers in my home State of Washington. Therefore, I am pleased with the FAA reauthorization, that it contained important provisions to improve the FAA's processes for certifying airplanes, engines, and other products. To address these issues raised by the GAO, section 313 required the FAA to convene an advisory panel to address inconsistent interpretations of flight standards and aircraft certification regulations. Unfortunately, that report to Congress on this effort is overdue. The FAA reauthorization also requires the agency to develop a plan for safely integrating Unmanned Aircraft Systems into the National Airspace System by December 2015. The FAA's Joint Planning and Development Office has collaborated with industry stakeholders and other Federal agencies to develop and finalize a comprehensive UAS implementation plan. Additionally, the FAA will select six test sites this year to gather data on how UAS operations may impact air traffic operations. I would like Administrator Huerta to identify some of the technical issues that need to be tested and resolved so that unmanned systems can safely and routinely operate in civil airspace. These are all critical issues for maintaining an American leadership in the aviation sector. And I am hopeful that the FAA and this subcommittee will continue to work together to meet the challenges that we have ahead of us. Thank you. I look forward to hearing from our witness. And I yield back. Mr. LoBiondo. Thank you, Mr. Larsen. Mr. LoBiondo. Normally we don't go to Members for opening sessions, but Mr. Bucshon has a special circumstance with needing to manage the floor, so he has asked for 1 minute. And with the committee's indulgence, you are recognized. Dr. Bucshon. Thank you for your indulgence, Mr. Chairman. Thank you for coming back today, Mr. Huerta. As you know, the FAA reauthorization, in that we authorized several test sites for Unmanned Aircraft Systems. Indiana and Ohio have jointly applied to be a test site. I just want to submit for the record the letter that the entire Indiana delegation sent to the DOT regarding our application and put in a plug for our State. It is a great place to do business. We would love to work with the FAA on this issue. Thank you, Mr. Chairman. I want to submit this for the record. Mr. LoBiondo. Without objection, so ordered. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Dr. Bucshon. Thank you. I yield back. Mr. LoBiondo. Thank you. Mr. LoBiondo. Mr. Huerta, once again, we apologize for the delay. And you are recognized. TESTIMONY OF HON. MICHAEL P. HUERTA, ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION Mr. Huerta. Thank you. Chairman LoBiondo, Ranking Member Larsen, and members of the subcommittee, a year ago Congress reauthorized the Federal Aviation Administration after 4\1/2\ years of uncertainty and stopgap measures. The biggest benefit of reauthorization was that it would provide predictability and allow us to invest with greater certainty in the future. So we are grateful for your effort on this and we have been working very diligently in the past year to implement the provisions of reauthorization. As we move forward, the number one mission of the FAA is safety. This will always be our priority. In the last few years, Congress has given us much guidance on how to advance aviation safety and we have accomplished a great deal. The FAA overhauled flight and duty rules to guarantee that airline pilots have the opportunity to get the rest they need to operate safely, and we are raising the required numbers of hours of experience before a pilot can operate the controls on any airline flight. We are also finalizing a rule that will require more rigorous training so that flight crews can better handle rare but serious scenarios. We are also improving our safety culture at the FAA and throughout the industry by voluntarily reporting hazards before they could become a problem and by adopting safety management systems. Internally, we created the Aviation Safety Whistleblower Investigation Office. One of the cornerstones of our safety culture is to ensure that employees can provide information without fear of reprisal. While we are enhancing the safety of the system that we know today, we are also working to deliver the benefits of new technology to create the aviation system of tomorrow through NextGen. We are working to safely integrate Unmanned Aircraft Systems into our airspace. Earlier this year, as directed by Congress in reauthorization, we requested proposals to host six test sites across the country to test Unmanned Aircraft Systems. This is a matter of significant public interest. We need to better understand operational issues to safely integrate these aircraft into our national airspace. We need to explore pilot training and make sure that unmanned aircraft sense and avoid other aircraft. And if they lose the link to their ground-based pilot, these aircraft need to operate safely. If we are going to continue to move aviation forward and remain a world leader, we need to collaborate across the FAA as well as with other Government agencies and also with industry. Reauthorization asked us to do this, and we have made great strides in collaborative efforts. Chairman LoBiondo, as you know, Atlantic City is a leader in NextGen research. The William J. Hughes Technical Center plays a key role in fostering NextGen, and we appreciate your support. We have worked with our labor unions, with industry, airports, and others, to address the problem of congested airspace over busy metropolitan areas. We are producing satellite-based procedures much more quickly and we are using these NextGen procedures right now to reduce the miles that aircraft must fly to create more direct routes, to cut delays, and to reduce fuel burn and cut greenhouse gas emissions. I am pleased that the President has announced his intent to appoint Michael Whitaker as Deputy Administrator of the FAA. Mr. Whitaker is a veteran of the airline industry and will serve as the FAA's chief NextGen officer, responsible for fostering the transformation of our national airspace. The FAA has an initial set of NextGen metrics available on our Web site, and we expect to publish additional performance metrics in the coming months. Our NextGen performance snapshots show that NextGen is happening now. For example, in Chicago we have been able to reduce delays at O'Hare International Airport in bad weather, thanks to NextGen. O'Hare and nearby Midway Airport have overlapping airspace at times. We made better use of this congested airspace in the last 2 years with a satellite-based procedure that aircraft use when flying into Midway. This procedure has allowed O'Hare to improve its arrival rate by 8 to 12 aircraft per hour when it is rainy or foggy and the ceilings are low. And aircraft flying into Midway travel fewer miles and save fuel. This is one of the many positive effects of NextGen and the type of improvement that reauthorization supports. The reauthorization laid out a vision to address the future needs of our Nation's aviation system, and these needs have not gone away. It is important for us to work together to protect the great contribution that civil aviation makes to our economy of $12.3 trillion and 10 million jobs. As you know, we are again facing fiscal uncertainty and unpredictability. The sequester is requiring the FAA to make sizable budget cuts that affect our operations and our future. While we are very grateful that Congress found a temporary solution to the FAA furloughs, this measure does not end the sequester. We will not enjoy the benefits or the stability that reauthorization provides until we find a solution to the sequester and find a sensible long-term solution. I sincerely hope that we can work together to ensure that America continues to operate the safest and most efficient aviation system in the world. Mr. Chairman, this concludes my prepared remarks. I would be pleased to answer any questions you may have. Mr. LoBiondo. Thank you, Mr. Huerta. I am sure we will have. Mr. LoBiondo. In starting off, as you had indicated in your opening statements and statements that have been made in the past, the FAA Technical Center that I represent is the test and integration facility for NextGen. I understand now the Florida test bed also reports through the Technical Center, and I am wondering if it is appropriate to assume that the soon-to-be- named six UAS test sites will also report to the Technical Center. Mr. Huerta. We haven't made a determination of the reporting because the test sites would actually be privately operated. What we are providing as part of the unmanned aircraft test site designation is a designation for them to operate and to perform research and analysis so that we can understand how these integrate into the national airspace. Currently, the process of selection of the test sites is administered through a joint program office that is jointly administered by our Aviation Safety Organization and our Air Traffic Organization. As we get later in the year we will make some further determinations and decisions regarding the selection of the test sites. We will make some decisions as to how best to integrate them into our organization. Mr. LoBiondo. So then the final testing and integration collaboration from the six test sites for UAS into the national airspace remains to be seen whether that will be done at the FAA's Technical Center? Mr. Huerta. I think what we have to see is what the proposals put forward and then how we best leverage that data across the whole FAA. Mr. LoBiondo. I, obviously, have a keen interest in this. Moving on to another topic, the FAA is currently behind on providing Congress with a National Facilities Consolidation and Realignment Report. Can you give us a status of the report and can you tell us will it be comprehensive and include all of the FAA's facility consolidation and realignment projects? Mr. Huerta. Yes. As you know, the consolidation of facilities has been something that has been a high priority for the agency. Reauthorization provided us important tools to address how we look at consolidation of facilities. One of the things that has bedeviled us in the past as we have looked at this has been that the agency used inconsistent technical approaches in evaluating whether or not and how best to achieve benefits associated with consolidation. We have been working collaboratively with our stakeholders and partners to work through a process of how we would look across the full scope of facilities that exist across the country. And while it has taken longer certainly than was anticipated by the committee and certainly longer than I would like to see, I think that the benefits of this collaboration have been quite fruitful. We are expecting to finalize an approach that we would like to share with the committee at a point in the future and talk about what the way forward would look like. But we are looking at the full scope of FAA facilities. Mr. LoBiondo. Any idea at what point in the future? Mr. Huerta. In the coming couple of months. Mr. LoBiondo. Couple of months. Last question for now. You may be aware that several Members have recently introduced a bill called the Small Airplane Revitalization Act of 2013. The legislation is intended to remove some outdated regulatory barriers to streamline certification processes and improve the well-being of general aviation industry, all while keeping a keen eye to improving safety. Have you at all been familiar with this legislation or have you seen it or had a chance to look after it? Mr. Huerta. I have seen the legislation. And as you know, Mr. Chairman, we have been working on safety improvements for small airplanes regulated under part 23 for quite some time now. We have had an Aviation Rulemaking Committee composed of industry experts that have been working since August of 2011 to review our regulations and processes and to provide actionable recommendations to the FAA. We are expecting that we would soon be receiving the ARC's recommendations and we will able to evaluate them for implementation planning and assigning resources and establishing timelines. I am not able to comment on the pending legislation, but should this legislation become law, the FAA will, of course, implement its provisions, as we do with any other mandate. Mr. LoBiondo. We would be interested if you and your team have an opportunity to take a look at this and if you have any suggestions you can offer us about how we can dovetail in so that we are sort of working together on this and not have the committee working on something, that you can see some improvements that can be suggested with. Mr. Huerta. We can certainly do that. On a high level, the approach that, as I understand the legislation, does acknowledge the work that has been ongoing. And I think that there is a great deal of convergence there. But we can take a look at it. Mr. LoBiondo. OK. We would appreciate that. Thank you. Mr. Larsen. Mr. Larsen. Thank you, Mr. Chairman. Administrator, earlier this year Chairman LoBiondo and I met with families of Colgan flight 3407. In February as well I asked you about the FAA's progress finalizing a rule on pilot qualifications due this August and another pilot training rule due in October. How would you assess the progress on both of those rules at this time? Mr. Huerta. We are making good progress. We are still expecting that we would publish the first rule in August and the second in October, as I testified in February. Mr. Larsen. Yeah. All right. Thanks. Chairman LoBiondo mentioned next week that we will be having a listening session. Our first one had focused on NextGen, and some stakeholders stressed the need for the agency to move more rapidly to deploy PBN routes into airports. Section 213 of the authorization requires FAA to report to Congress on its plan to implement PBN at the top 35 airports, but to date, we have not received that report. Can you update the subcommittee on your efforts to implement PBN at the top 35 airports. Mr. Huerta. Well, PBN has certainly been a high priority for the agency. It is the centerpiece of our initiative that we call Metroplex. And that is a collaborative process that we are implementing across the country that is very much focused on what we can do to advance and ensure the use of advanced navigation procedures throughout the National Airspace System. The report that you mention is a report that we are finalizing our work in now. It is now in executive coordination. I hope to be able to provide it to the committee soon. Mr. Larsen. Thank you. With regards to the collaboration, are there certain factors that are helping that collaboration and other factors that are inhibiting that collaboration? Mr. Huerta. Well, the major thing that characterizes the Metroplex initiative and problems that we have had in the past, I think it is fair to say that in advancingperformance-based navigation years ago the focus was on quantity rather than quality. And by that, I mean that there was a lot of discussion about how do we develop and publish advanced navigation procedures and we weren't really focusing on how they were being used or what the operational challenges were with actually enabling air carriers and other users of the system to take advantage of them. What has changed is we are now very focused on these second two pieces, how do we ensure that they are actually being used so that we can get the benefit and how do we ensure that we are taking all the steps that are necessary to ensure that they can be operationalized. That includes an understanding by all of the users of the systems--pilots, controllers, airports--if there is military airspace, how does it fit into the Defense Department's particular requirements, what is the mix of traffic that might exist in a particular metropolitan area. All of that is crucial to being able to develop a procedure that is going to work for the users in the metropolitan area as a whole. There are also issues that we identified. We have had an effort where we have looked at the operational barriers. That has focused us on things such as the air traffic controllers handbook. We had an activity underway over the last year which really focused on what are specific things that we need to do to update and amend the air traffic controllers handbook. Fifteen specific changes were recommended as a part of that. We are expecting that we are going to complete work on about 10 of them by the end of this fiscal year. The others are more complex and will require longer term work to get them implemented. But the focus is on what can we do to ensure that these procedures are actually operational. Mr. Larsen. Thanks. The bill created severalmilestones for the safe integration of Unmanned Aircraft Systems in the civil airspace, and your written testimony notes that you requested to host six test sites around the country. In addition to some of the privacy issues that I tend to hear more about from folks when it comes to unmanned aerial vehicles and systems, what technical issues, so the top three or four technical issues, need to be resolved before we can see some safe integration into the NAS? Mr. Huerta. Well, the things that we are looking at relate to the types of things that I talked about in my opening statement. How does an aircraft operate, for example, when it loses link with its ground-based station and what are the rules under which that aircraft would operate until link could be reestablished? That is a different way of looking at the traditional aviation practice of sense and avoid. But since the pilot is in the remote location, if link is lost between the ground station and the aircraft that is flying above, then you have to have a clear set of procedures in place of what happens so that that aircraft can avoid other aircraft. We also need to understand how these characteristics actually operate in different types of airspace, different weather conditions, and with particular purposes in mind. For example, a lot has been suggested as the potential for the use of unmanned aircraft for such things as aerial surveys, environmental monitoring. And those raise questions about how do we ensure that those activities can be conducted safety in conjunction with other aircraft operating within the National Airspace System. Weather characteristics and how they operate in inclement weather is also a factor that we need to understand. And so while there is always bad weather everywhere around the country, we also have to understand, are there particular issues that come up in different climate conditions? The legislation anticipates that and suggests that we look at geographic diversity in the award of the six test sites. So those are some of the factors that we are focused on: the technical factors of how these aircraft operate, the human factors of how the operators actually would interact with other operators within the system, and then some of the questions relating to the use of these. Mr. Larsen. Great. Thanks. Mr. Chairman, I will have a second round, but I will yield back for other Members. Thank you. Mr. LoBiondo. Mr. Meadows. Mr. Meadows. Thank you, Mr. Chairman. And thank you for coming to testify. I want to pick up a little bit on what the chairman had touched on briefly with regards to the Small Aircraft Revitalization Act. I know you don't want to comment on that. But I think earlier this week you convened a general aviation safety summit there, where you talked about it. And part of that would be really a rewrite of part 23. So that is your opinion, that we need to rewrite that. Is that correct? Mr. Huerta. Well, that is what we have been working on, what can we do to improve part 23 to achieve the objectives that the industry wants to see in terms of streamlining and faster response time. Mr. Meadows. If you were to highlight three areas that you say, Congressman Meadows, these three areas, if we could have legislative assistance on those three, what would those three areas be? Mr. Huerta. I am not sure that we are at a point, since we are still working through the process with industry to identify what the priorities are, and we expect to receive that report from them later on this summer, but the thing that I hear consistently is that things just take too long, that the industry is very interested in what can be done to streamline the process of achieving a certification for new products coming to market. There are two dimensions to that. One is that it greatly reduces the amount of time for a manufacturer to get products into the marketplace, but there is also a cost-benefit associated with that, that it reduces the cost of these. And one of the things that we have heard loud and clear from the general aviation industry is that, while they see huge potential for improvements in safety as a result of adopting these technologies, they can be expensive. So what can we do through this process that would help bring the cost down? Mr. Meadows. So what would you say is the greatest barrier to that? Is that the National Safety Transportation Board? I mean, is the enemy us or is it just technology in general? Mr. Huerta. That is exactly what we are looking at right now, to try to develop a better understanding of what are those barriers, where can we reduce time. I think the big thing is time, that the requirement for certification is there for a good reason. You want to ensure that if you are installing equipment in aircraft, that it will promote safety and not have unintended consequences. Everyone is very interested in doing everything that we can to promote safety, but at the same time we have to make sure that we are not doing things that are duplicative, redundant, and take more time than they need to. Mr. Meadows. All right. And any specific recommendations that you have, I am sure the committee would love to hear those from you. And so if you could submit those along with your record. But let me pick up on one other thing. You talked about rewriting the controllers handbook. Mr. Huerta. Sure. Mr. Meadows. And we had a roundtable that the chairman kind of convened and I sensed a level of frustration--and that may be a harsh word--but a level of concern on the part of some of the airlines where they have installed NextGen equipment and yet they are saying the real barrier is FAA controllers that are operating under an old set of rules, and even though we might be able to adopt the new rules in some of the lower trafficked airspaces, the higher traffic that controls so much of the hub and spoke kind of arrangement. What are we doing to change that, and is there a date certain on when that might be changed? Mr. Huerta. Well, that is exactly the concern that I have heard, and that is why we have decided that where we need to focus is in metropolitan areas, and that is what Metroplex is really all about. We need to look at an entire metropolitan area, bring all the stakeholders together, and understand what it is that is really going on within that particular metropolitan area and what can we do to ensure that, first of all, we know what the priorities are. What are the ones that the industry would like to see most? The second point is, how do we ensure that they will actually get used once they are published? That raises the operational things like the controllers handbook and the operational details associated with that. The final point is we have to track what their utilization is, because you are putting them in place for a particular reason: You want to yield benefit. We are all in a much better place if we actually have solid data on their actual utilization. There is a lot of folklore that is out there of whether or not they are being used, and it is important that we actually have real data to do that. That is what we are trying to do through this initiative and why we focus it on metro areas. Mr. Meadows. So bringing those stakeholders together, do have you any kind of a timeframe, date certain when that is going to happen in terms of getting everybody together? Mr. Huerta. Well, it is rolling timetables that we are working through specific metropolitan areas. Like, for example, we had convened two to start, one in north Texas and one here in Washington. And we are actually taking advantage of procedures in both of those metropolitan areas that have been developed. Later, we started development in other metropolitan areas. And so what we are trying to do is separate out the development of new procedures into two buckets: What are things that we could do right now, what are others that are going to require more analytic and perhaps environmental work in order for us to get through the process. We have initiatives in a wide variety of metropolitan areas and they are all operating under difference schedules. Mr. Meadows. I appreciate the Chair's indulgence, and I yield back. Mr. LoBiondo. Thank you. Mr. DeFazio. Mr. DeFazio. Thank you, Mr. Chairman. Mr. Administrator, good to see you. In the testimony, you talked about the consolidation, realignment of your facilities and said that you are engaging your employees. Now, as you know, there has been some controversy in this area before about whether or not it was real and meaningful involvement. Can you just give us a little bit of an idea what is going on and how engaged the line staff are in this? Mr. Huerta. Well, you know, I would ask them to answer that question as well. But I will say this. Yesterday I participated in a meeting of well over an hour where there were representatives of all of our employee organizations that would be affected by this and where they were making a consolidated presentation to me of where they are in the process. I think the thing that I was most impressed by was that as you worked your way around the table, if you didn't know the people, you wouldn't know who was representing the controllers or the specialists or the technicians or the facility management because they were all providing in a very collaborative way meaningful information of how do we get through this. And they were listening to one another, they were respecting one another's positions, and they were coming to me with what looked like a lot of thought. It was very clear that these people had been working together very closely for a long time. I thought that was a good sign. I had a bunch of questions. They had a lot of good answers. There are some things that they are continuing to work on as we are trying to move this forward. But certainly from my standpoint it looks like the collaboration is working quite well. Mr. DeFazio. Right. Over a number of years the committee has expressed concern about overseas foreign repair stations. And there was a reauthorization that mandated the implementation of a safety and assessment system. I know sometimes you have problems dealing with the State Department and other issues on this. Where are we at in terms of the oversight of foreign repair stations? Mr. Huerta. Well, as it relates to the specific State Department issue, the issue here related to drug testing and the reauthorization of the requirement that we require that at facilities both inside and outside of the United States, which raises territorial issues. And so the Secretary of State and the Secretary of Transportation wrote a joint letter last fall to the International Civil Aviation Organization membership asking for their willingness to support such an approach, and we are continuing to engage ICAO to work through developing an international agreement on how we move forward. Mr. DeFazio. OK. So not so much progress. Mr. Huerta. When we are dealing with international oversight, as you know, you have to have the consent of the host countries. Those are the things that we need to work through. Mr. DeFazio. Well, yeah, we do, except that we can also prohibit our people from using facilities that we haven't been able to certify meet our standards. Mr. Huerta. Well, I think that we have an approach that has served us very well in terms of in other parts of the world relying on the certification authorities there, just as they rely on us for certification of facilities that take place in this country. That is a process that has served the aviation industry quite well. But we do recognize that we need to continue to push the envelope on oversight, and we are doing that. Mr. DeFazio. Yeah, I mean, I am pretty confident in our oversight, although we have had hearings on that issue also in terms of how often you can get to each of these facilities, whether you are doing real inspections or whether you are inspecting paperwork that certifies inspections, et cetera. So, anyway, it is an ongoing concern with me and perhaps other members of the committee. And then finally a question about your certification process. We obviously have become somewhat more reliant upon the manufacturers themselves to self-certify and test things, and we had a recent concern regarding the new Boeing plane. So are you revisiting that in any way? Mr. Huerta. Yes. As part of the Boeing effort we undertook two things. One was a detailed review of the specific systems related to the battery. As you know, on April 19th we did recertify the battery system and the aircraft are now being modified and gradually returned to flight. Earlier, we had announced a review of the certification process related to the 787, and that review is ongoing. And it is one that we think is extremely important because what we want to understand is the whole process, are there issues that we need to take another look at and rethink. I will say this, though. Certification has always been all about bringing the best technical minds together to surface issues, to identify what do we need to do to ensure the highest levels of safety. But it is ultimately the FAA that has to issue the certification, and that is something that we take very seriously. Mr. DeFazio. OK. Well, and I appreciate the fact you are reviewing the process, and we don't need to add unnecessary layers of review and bureaucracy, but we want an effective and safe process. So thank you. Thank you, Mr. Chairman. Mr. LoBiondo. Thank you. Mr. Williams. Mr. Williams. Thank you, Mr. Chairman. Mr. Administrator, thank you for being here. Appreciate your testimony. Mr. Huerta. Thank you. Mr. Williams. I fly into DFW every Sunday. I am rooting for you. OK? But I am a business guy. I come from the business sector. Still have a business. And I hear your testimony, and streamlining and reforming are two key words in the FAA. And I guess what I would like to say--and you have touched on this a little but, just as a reminder, ask this question--are you prepared, as the private sector is prepared always, to deal with cutting these expenses, wasteful spending, so we are not in a crisis management mode like we have seen here in the past, that we get on a level of spending that we can still give the service but also not have a crisis situation every day. Mr. Huerta. Absolutely, sir. We have done an awful lot of work to try to reduce the cost of operating the agency. The agency has been able to make due with flat budgets for a number of years now, at the same time, we are trying to make significant investments in new technology while reducing the cost of operating the National Airspace System that we have today. There has been a lot of focus on areas such as acquisition and technology. We have seen a lot of cost savings. We will continue to see cost savings in that area. We are also, as we talked about in the last few minutes, reducing the costs associated with providing the regulatory oversight that we provide through the streamlining of processes that enable us to bring new products to market more quickly. We have had a lot of focus on what we can do to improve our acquisition processes to take advantage of the fact that we are a large purchaser. And, yes, this is something that I take very seriously. Mr. Williams. When you go to cutting costs, don't forget the customer. Mr. Huerta. OK. Mr. Williams. Thank you for your testimony. Mr. Huerta. Thank you, sir. Mr. Williams. I yield back. Mr. LoBiondo. Mr. Nolan. Mr. Nolan. Thank you, Mr. Chairman. And, Mr. Huerta, I apologize for coming in late, and thank you for your patience. I am sure they told you we had a bunch of votes that came up. Our schedule got somewhat conflicted. But congratulations for the work that you have done to implement the major new Federal legislation and reauthorization. I certainly believe that you are to be commended for the splendid job that you have done. Mr. Huerta. Thank you. Mr. Nolan. We are proud of you. Together with Congressman Pompeo and several other members of this committee, I am one of the sponsors of H.R. 1848, the Small Aircraft Revitalization Act of 2013. And as you know--and I saw mention of it in your testimony, and I appreciate that-- this bill will require that the FAA complete a rewrite of the Federal regs governing small craft by no later than 2015. If that bill were enacted today with your existing funding and authority do you anticipate you would have a problem with this deadline or do you feel that it is doable? Mr. Huerta. Well, I may have mentioned this before you came in, sir. This is something that we have been focused on, working collaboratively with industry under an Aviation Rulemaking Committee since August of 2011. I think at a high level this is very consistent with the approach that we have been taking. We are expecting this rulemaking committee to provide their report to the agency later on this summer and at that point we will see what the specific recommendations are that they are looking at and we will be in a much better place to assess the timetables associated with it at that point. Mr. Nolan. Very good. That is very helpful. Thank you. I didn't see any mention of the Essential Air Service program, which serves several airports in my district and throughout the country. And it has been very, very valuable, very helpful to our regional economic development and the strong regional centers. Do you anticipate that sequester will have an impact on this critically important program? Mr. Huerta. Well, while the Essential Air Service program is carried in the FAA budget, it is actually administered by the Department of Transportation under the Assistant Secretary for Aviation and International Affairs. And so I am not familiar with what their plans are for this year, but we can certainly get you a response for the record. Mr. Nolan. OK. That would be very helpful. And, lastly, I know you are looking at half a dozen different sites to be considered for the Unmanned Aircraft Systems test sites around the country? Mr. Huerta. That is correct. Mr. Nolan. And how many sites are you looking at? Where are you at in that process? Mr. Huerta. Well, we are in a competitive process where the final submissions were presented to the agency in the last couple of weeks. We received 25 distinct submissions from about half of the States, and what the legislation provides is for us to designate six. And we are in the evaluation process now. We expect to complete that process by the end of this calendar year. Mr. Nolan. OK. Thank you very much, Mr. Huerta. And, again, thank you for your work. Mr. Chairman, I yield the balance of my time. Mr. Huerta. Thank you. Mr. LoBiondo. Mr. Davis. Mr. Davis. Thank you, Mr. Chairman. Thank you, Administrator Huerta. First off, I want to say thank you. And also to Secretary LaHood, my friend from Illinois, please offer my thanks to him for administering our recent legislation very quickly, especially to save some air towers in my district, and also to address the furlough issue. I am happy with that response. And as a new Member of Congress, it shows me that you did well when the time came for us to pass that legislation, and I have to commend you. I came in a little late. I got off the floor, I guess, a little later than some of the other Members here. So if I am redundant with my first question, I apologize, but it is in regards to the required navigation performance procedures. What is the FAA's plan to push for beneficial required navigation performance procedures? Mr. Huerta. Yes, this is an initiative that is a very high priority for us because it is something that a lot of air carriers are already equipped to be able to take advantage of. This is really the centerpiece of our effort that we call Metroplex, which is focused on major metropolitan areas where we bring together the users of the system and the operators of the system in a collaborative process with the intent of identifying what are priorities for development of navigation procedures, how can we get them implemented as quickly as possible, and then once implemented, how do we ensure that they are actually being used. It raises a host of operational issues and challenges that we need to work through as a group. It also raises significant things that we need to do on our end as well as the operator needing to do on their end. I think before you came in we were having some conversations about the controller hand book as illustrative of some of the things that we needed to work through. But it is as a result of bringing the stakeholders together that we identify, hey, we have got a problem with the controller handbook and we need to actually make some revisions to it. And so I think it is a process that has served us very well. It started with a program that we had in north Texas, as well as here in Washington. We have since expanded it to include most major metropolitan areas of the country. And that work is a very high priority for the agency. Mr. Davis. Great. And third parties are being used to expedite the delivery of these benefits? Mr. Huerta. Yes. Reauthorization did request that we consider the use of--it provided direction to us to allow for third-party development of these advanced navigation procedures. We did make a contract award under that, and that work is ongoing, and we actually think it is progressing quite well. Mr. Davis. OK. Thank you for ending with you think it is progressing quite well, because that was my next question, what do you think this experience is. But I will yield back the balance of my time, but I do want to say thank you again. And thank you, Mr. Chairman. Mr. Huerta. Thank you. Mr. LoBiondo. Mr. Larsen. Oh, I am sorry, Dan. I didn't see you there. Mr. Webster. I have no questions, Mr. Chairman. Mr. LoBiondo. No questions? OK. Apologies. Mr. Larsen. Administrator, the GAO previously reported on the need for greater consistency in the FAA's interpretation of standards for certification and approval decisions. And so in section 313 the bill required the FAA to establish an advisory panel to develop recommendations to address some of those issues raised by the GAO. What is the status of that particular advisory committee's work and when can Congress expect to see that report? Mr. Huerta. Now, the section 313 report is something that has certainly been, I think, of great importance. This is one of the things that I hear a lot about and it is one of the things that we need to figure out how we can do a better job of ensuring that we have consistency across the NAS. The report that we have developed, we do have a draft of the report. It is circulating within the Administration in executive review. And we are working through some comments on that and we will have to complete that coordination process before we can present it to Congress. But we have a good draft that we are working with. Mr. Larsen. Do you have a timeline on that? Mr. Huerta. I would like to say that I do. Mr. Larsen. I would love for you to say that you do. Mr. Huerta. Unfortunately, I can't really predict how long it is going to take to get all the comments and then to be able to respond to all of them. Mr. Larsen. Well, I think as you are communicating with the folks in the Administration and the executive review, letting them know that the committee is extremely interested as well in this report and the sooner that we can hear back, the better. Mr. Huerta. We will certainly do that. Mr. Larsen. Not to prolong the discussions on sequestration, but I am wondering if you have all done any sort of analysis yet of the impact of moving that $253 million out of AIP and what that will mean practically. I mean, theoretically we knew what that would mean. Do we know yet practically what that will mean in terms of a second round of AIP grants for this fiscal year? Mr. Huerta. Yeah. For this fiscal year the $253 million will come out of discretionary grants that we would award at the end of the year. At this point we don't have a good sense of what that actually means in terms of specific projects because those projects tend to come in very late in the year. Having said that, I think it is reasonable to expect that you would see some delays or that there might be some requests that would come in for AIP funding at the end of the year that we would not be able to meet as a result of this transfer. Mr. Larsen. Yeah, but it is still a little early---- Mr. Huerta. It is still a little early, yeah. Everyone is still receiving their formula allocation, and so the entitlement funds they receive. It is really the final round of discretionary that would be affected. Mr. Larsen. OK. Just a moment. Yeah. In your written testimony you noted that you are working on the ICAO to find some solutions to address aviation greenhouse gas emissions and you are encouraged by the EU decision to stop the clock on the application of the ETS. Can you update the committee on the progress that FAA is making at ICAO on this issue? Mr. Huerta. Well, as you know, it is a complicated international negotiation, but the United States is a very active participant in those discussions. The expectation is that this will be one of the central discussions that will take place at the ICAO General Assembly, which is scheduled for later on this fall. There is a great deal of focus on the part of all of the members of ICAO to present actionable recommendations for consideration by the General Assembly this fall. Like any large body or semi-legislative body such as ICAO, agreements tend to emerge very late in the process. What we are seeing right now is a lot of discussion back and forth, a lot of the concerns that have been raised by developing countries versus developed countries. But I think that what does unify everyone is a sense that the only thing that is going to work is a global solution rather than the regional solution that had been proposed originally by the Europeans. So we are making progress. It is a very slow process. But something will need to be resolved in time for the general assembly this fall. Mr. Larsen. Thank you. Thank you, Mr. Chairman. Mr. LoBiondo. OK. That is it. Mr. Huerta, we thank you very much. I am sure we will be following up. And the committee stands adjourned. Mr. Huerta. Thank you, sir. [Whereupon, at 3:37 p.m., the subcommittee was adjourned.]