[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] CAUSES OF DELAYS TO THE FAA'S NEXTGEN PROGRAM ======================================================================= (113-30) HEARING BEFORE THE SUBCOMMITTEE ON AVIATION OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ JULY 17, 2013 __________ Printed for the use of the Committee on Transportation and Infrastructure Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation ---------- U.S. GOVERNMENT PRINTING OFFICE 81-939 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 MARK SANFORD, South Carolina ------ 7 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................................................. 4 Hon. Calvin L. Scovel III, Inspector General, U.S. Department of Transportation................................................. 4 PREPARED STATEMENTS AND ANSWERS TO QUESTIONS FOR THE RECORD SUBMITTED BY WITNESSES Hon. Michael P. Huerta: Prepared statement........................................... 31 Answers to questions from the following Representatives: Hon. Frank A. LoBiondo, of New Jersey.................... 43 Hon. Richard M. Nolan, of Minnesota...................... 54 Hon. Calvin L. Scovel III, prepared statement.................... 61 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] CAUSES OF DELAYS TO THE FAA'S NEXTGEN PROGRAM ---------- WEDNESDAY, JULY 17, 2013 House of Representatives, Subcommittee on Aviation, Committee on Transportation and Infrastructure, Washington, DC. The subcommittee met, pursuant to call, at 10:02 a.m., in Room 2167, Rayburn House Office Building, Hon. Frank A. LoBiondo (Chairman of the subcommittee) presiding. Mr. LoBiondo. Good morning. The subcommittee will come to order. I thank you all for being here. One of the priorities of the subcommittee is to ensure that the U.S. maintains a modern, safe, and efficient aviation system now and into the future. Our current system simply cannot meet future air traffic demands. Over the last decade the FAA has been developing and more recently implementing a program to meet these demands, generally known as NextGen. Let me be clear, I completely support the NextGen program. I am very fortunate to represent the FAA Technical Center in my district, which is the Nation's premier aviation research and development, test and evaluation facility, and the primary facility supporting NextGen, as well as many other vital aviation safety initiatives. I have seen firsthand the development of technologies at the Tech Center that are now being deployed and in use in the National Airspace System. These technologies, many of which contributed to the survival of so many passengers aboard the Asiana flight 214, are improving the safety and efficiency of the civil aviation system. That is why I believe that the validation and testing of NextGen and other critical safety and modernization initiatives should continue to be conducted at the Tech Center. However, I also know that there are serious concerns regarding the FAA's ability to effectively and efficiently implement NextGen. I have heard that some ``transformational'' NextGen programs aren't truly transformational, that the FAA will never make the tough decisions required to advance NextGen, and that nobody can really agree what NextGen is today or what it should be in 2025. These concerns should not be downplayed, ignored, or outright dismissed. Whether or not you agree with them is not relevant. We--and the taxpayers, more importantly, and airspace users--have invested billions of dollars in NextGen, and it is clear that billions more will need to be invested. Every concern should be acknowledged, reviewed, and properly addressed. I also want to make clear that I am not pointing the finger at any specific person for perceived or actual problems with NextGen. In particular, Administrator Huerta, this is not directed at you. But the NextGen program is a decade old, and there are a lot of people that share the responsibility for what has taken place or what has not taken place, including people within the FAA, the aviation industry, and Congress itself for what we maybe have not done or not done as well as we should have done. The inspector general is here today to outline a number of problems with advancing NextGen that he and his inspectors and auditors have identified. I look forward to hearing his findings and recommendations. This report provides an opportunity for all of us to hit the reset button and make sure that we are headed in the right direction, in the most efficient and effective way, and with the best outcome. We have to plan appropriately, in particular with the upcoming budget constraints which could have a big impact on all FAA operations. I expect DOT Secretary Foxx, Administrator Huerta, Deputy Administrator Mike Whitaker, and industry stakeholders to work together to get the program back on track, yielding the benefits that all of us want to see. Most of you know that by now my door is always open, and if there is anything that I can do, or more importantly we as the committee can do, we hope that you do not hesitate to ask. I also want to add that I have worked very closely with Congressman Larsen over the years, and especially now with this session of Congress, with this Aviation Subcommittee, I think we are of exactly the same mind with our focus and direction and how we would like to see things move forward. So with that, Rick, I will now yield to you for your opening statement. Mr. Larsen. Thanks, Frank. And I want to thank the chairman for calling today's hearing to review the implementation of NextGen. Mr. Chairman, you and I have led this subcommittee for only a few months, but I believe we are both committed to making sure that the FAA's NextGen effort succeeds, and this subcommittee must provide the FAA with the authority and resources that it needs to be successful. We also have to provide vigorous oversight to ensure necessary corrections to guarantee NextGen stays on track. And if you will allow me just to divert briefly from my prepared remarks, in looking at the testimony of both Administrator Huerta and Inspector General Scovel, it reminds me of a term that I think law enforcement uses to describe when two or more people look at the same crime scene or the same crime incident, and conclude two or three or four very different things happening. It is called the Rashomon effect. And reading the testimony from both folks, it seems like two people are looking at the same thing and coming up with two very different conclusions about what happened. Now, the term ``Rashomon'' is from the movie by Akira Kurosawa, some might know, called ``Rashomon.'' And it details a very tragic incident that happens and it really gets down--in the movie it really--it sort of devolves into the cesspool of existentialism about what is the truth and what is the meaning of truth. I hope we don't get to that point in this hearing about what is NextGen and what are the concerns with it. Otherwise, we may be in a lot of trouble. But I do think that we have to provide some pretty aggressive oversight to get at what are the actual problems and what are the next steps that we do need to take. The FAA has clearly made some progress in its efforts to implement NextGen. For example, the agency has advanced the ADS-B program that will be the NextGen satellite-based successor to radar for tracking aircraft. FAA has deployed more than 500 ADS-B ground stations and is on track to deploy all 700 ground stations on time in early 2014. But it has experienced setbacks. According to the inspector general, a $330 million cost overrun and 4-year delay on the ERAM, or En Route Automation Modernization program, has delayed the start of new NextGen programs. And after examining the inspector general's report, I am concerned that without changes, delays in NextGen may force us to rename it LastGen. We have a lot of work to do. The FAA's approach to implementing NextGen has changed since Congress tasked the FAA with transitioning to NextGen a decade ago. For example, in 2005 the administration at the time requested and received cuts to the FAA's capital account, leading to the termination of some early efforts to achieve NextGen capabilities. In 2009, FAA shifted its strategic focus to delivering NextGen benefits to airspace users in the midterm 2018 timeframe. The FAA took this action at the urging of industry stakeholders who participated in the RTCA's Midterm Implementation Task Force. Yet, while the FAA has been working to maximize early NextGen benefits, the inspector general will testify this morning that the FAA has not made several key long-term decisions that will ultimately shape the capabilities, timing, and costs of NextGen. So therefore I look forward to hearing Inspector General Scovel and Administrator Huerta's explanations of the reasons why these long-term decisions have not been made. Additionally, I want to hear how the FAA intends to respond to budgetary pressures that will undoubtedly affect future NextGen implementation. In May, the chairman and I hosted a NextGen listening session where industry participants told us the FAA stood down its NextGen metroplex initiatives due to sequestration. In response, I wrote to Administrator Huerta asking him to explain that situation and have yet to receive a formal reply. So I do look forward to hearing Administrator Huerta's answer providing the subcommittee with an update on this issue. And last month, the House Appropriations Committee reported a fiscal year 2014 transportation appropriations bill with historically low capital funding levels for the FAA. H.R. 2610 would provide $2.1 billion for the FAA's facilities and equipment account for 2014. That is 22 percent less than the Administration's request. Moreover, it is a cut below the 2013 post-sequester funding level and the authorized 2014 funding level this committee provided in the FAA reauthorization. The House transportation appropriations bill would provide the lowest level of capital funding for FAA since the start of the NextGen program and the lowest level since 2000. Clearly, the Administration is expecting budget cuts to have a significant impact on NextGen. Last Friday Administrator Huerta asked the RTCA Advisory Committee, the NextGen Advisory Committee to develop a prioritized list of NextGen activities that will be triaged due to budget cuts and sequestration. And I want to hear the Administrator's explanation why he asked the NAC to undertake this project and how it will influence NextGen strategy. On a positive note, we now have stable leadership for NextGen that we have not had in the past. Administrator Huerta, who led the NextGen effort for years, was sworn in for a 5-year term as Administrator late last year, and just last month the Obama administration appointed a Deputy Administrator who will serve a 5-year term as the chief NextGen officer, as required by the FAA bill. Mr. Chairman, NextGen's success will rely on a strong partnership between Government and industry. As an airline industry veteran, Deputy Administrator Whitaker is well positioned to reach out to the industry stakeholders and leverage the collaboration needed to move NextGen forward. So with that, Mr. Chairman, I want to thank you for the opportunity to provide an opening statement, and look forward to hearing from our witnesses. Mr. LoBiondo. Thank you, Rick. With that, I 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. Now, I would like to turn to our panel. And first, Administrator Huerta, welcome, and we look forward to your statement. TESTIMONY OF HON. MICHAEL P. HUERTA, ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION; AND HON. CALVIN L. SCOVEL III, INSPECTOR GENERAL, U.S. DEPARTMENT OF TRANSPORTATION Mr. Huerta. Thank you, Chairman LoBiondo, Ranking Member Larsen, and members of the subcommittee. I appreciate the opportunity to testify before you today on the progress we are making with NextGen. Mr. Chairman, before I begin my testimony I want to express that our thoughts and prayers are with the passengers and crew of Asiana flight 214 and their families. I am sure the committee appreciates that the ongoing accident investigation is in the early stages, and I am not able to speculate about the cause of the crash. The FAA is fully supporting the investigation of the National Transportation Safety Board and we will continue to do so throughout the process. We are also fully supporting the NTSB investigation into the crash of an air taxi in Alaska earlier this month. Our thoughts and prayers are with those families as well. And we are participating in the investigation of the fire aboard the Ethiopian Airways Boeing 787 in London last week. The FAA has sent a specialist to Heathrow Airport in support of the British Government's investigation into that incident. Safety is our mission at the FAA, and we are working to continuously enhance our policies and procedures. Last week we issued a new rule requiring more hours of experience for first officers who fly for U.S. airlines, and we are also requiring that first officers earn a type rating, which involves additional training and testing specific to the aircraft they fly. The Next Generation Air Transportation System is helping us to enhance safety and efficiency by transforming our aviation infrastructure. NextGen technologies guide aircraft on more direct routes, they save fuel, and decrease delays. That is not only good for the environment, it saves the airlines money, and it is good for business. We are delivering the objectives of NextGen as promised. We have consistently met more than 80 percent of our implementation milestones over the last 5 years, which is extraordinary when dealing with a complex technological program. Overall, NextGen is on track, and yes, there have been delays, but we have learned from these and incorporated those lessons in the way we move forward. We are making all of these improvements in a very dynamic operating environment. We have found that collaboration is the key to success and to providing the best benefit to all stakeholders. We have a detailed plan to implement NextGen, and this plan is integrated into our enterprise architecture for our entire National Airspace System. At the same time, we are flexible enough to adjust our course. This approach is working and we are delivering benefits to our stakeholders now. A good example is Memphis, where we have increased airport capacity by more than 20 percent since last fall. By working with our partners we were able to revise wake turbulence separation standards. This allows aircraft to safely depart, one behind another, slightly closer together than before. In Atlanta, we work to safely allow jets to take off on headings that are slightly closer together. This small change has resulted in a 10-percent increase in departures per hour from the world's busiest airport. We estimate customers have saved more than 11,000 hours of waiting in line to take off last year thanks to NextGen. We expect these improvements will save the airlines $20 million this year in Atlanta alone, and we intend to bring this type of efficiency to other major airports. We have brought together all of our stakeholders--airports, airlines, our air traffic controllers, managers, and other Federal agencies--to decrease congestion in the airspace over busy metropolitan areas nationwide. Through the metroplex initiative we are working in north Texas and Houston, northern and southern California, Atlanta, Charlotte, and right here in Washington, DC. Airlines flying into the DC metro area have started using these NextGen procedures. We estimate they will save $2.3 million in fuel per year and cut greenhouse gas emissions by 7,300 metric tons. And these benefits will increase as we develop more procedures. Just as industry depends on us to deliver the best benefits now, we depend on industry to share information with us to help us measure the benefits that NextGen provides. As I said earlier, collaboration is key. Only by investing the time, dedication, and commitment, will we continue to see the best benefits. Mr. Chairman, last year Congress reauthorized the FAA for 4 years and laid out a vision with bipartisan consensus to address the future needs of our aviation system. These needs have not gone away. Yet, under the sequester and the current climate of fiscal uncertainty, the FAA needs to make sizeable budget cuts that affect our operations, NextGen, and our future. This uncertainty undermines the roadmap that the FAA and Congress laid out for NextGen. It was only last year that we all agreed that these goals were extremely important to protect the great contribution that civil aviation makes to our national economy. We are facing many challenges, but we must stay the course. Our aviation system needs these improvements, and the cost of not doing them is far greater than the cost of moving forward. It is important for us to work together to ensure that the United States continues to lead the world in aviation technology. Mr. Chairman, this concludes my prepared remarks, and I would be pleased to answer any questions you may have. Mr. LoBiondo. Thank you, Administrator Huerta. Our second witness today is Department of Transportation Inspector General Mr. Calvin Scovel. Inspector General Scovel, you are recognized for your statement. Mr. Scovel. Chairman LoBiondo, Ranking Member Larsen, members of the committee, thank you for inviting me to testify on FAA's NextGen program. Transforming our Nation's aging air traffic system is critical to meet the increasingly complex demands on airspace while maintaining the highest levels of safety. While FAA has made progress since it launched the program a decade ago, such as responding to a Government-industry task force, publishing a rule on ADS-B, and establishing a new organizational structure, many NextGen initiatives are still in the early stages of development. My testimony today will focus on three priorities for advancing NextGen: addressing the underlying causes for limited progress, maximizing near-term benefits, and successfully implementing critical automation systems such as ERAM. A number of weaknesses have contributed to the problems in advancing NextGen. FAA's original plans for NextGen contained in its 2005 progress report to Congress did not establish priorities, fully develop requirements, specify how technologies would be developed or integrated, or address implementation costs. By 2009 both FAA and industry recognized and agreed that FAA's initial goals of completing NextGen by 2025 at a cost of $40 billion would not be possible. Developing adequate plans with realistic expectations still remains a challenge, largely because FAA has yet to make critical design decisions that will serve as the foundation for NextGen's future. For example, FAA has yet to decide on the level of automation needed to manage air traffic and how much responsibility for separating aircraft should be delegated to pilots and what should remain with air traffic controllers. These decisions will significantly impact NextGen requirements, capabilities, timing, and costs. Organizational instability and gaps in leadership have impeded implementation and further undermined FAA's advancement of NextGen. Establishing clear lines of accountability and authority will be key to securing progress. FAA's recent reorganization, the third in less than 10 years, is a step forward to improve NextGen's management, but ultimately the key to success will be in FAA's execution. Securing stakeholder buy-in is another significant roadblock to advancing NextGen. Industry representatives and other stakeholders continue to express skepticism that FAA will be able to deliver planned capabilities. Until FAA clearly defines how NextGen technologies will benefit users, air carriers will remain reluctant to invest in costly NextGen equipment. A key component to gaining user support for NextGen will be integrating new performance-based navigation routes and procedures at major airports. Navigation procedures, such as RNAV and RNP, can provide significant near-term benefits, including reduced congestion, more direct flight paths, and fuel savings. FAA has made progress in designing new advanced procedures at busy airports. However, implementing them has been delayed due to obstacles such as a lengthy procedure development process, outdated controller procedures, and limited training for controllers. Moreover, air carriers are not widely using procedures that have been implemented. For example, at the six large airports in Chicago, New York, and Washington, where FAA has implemented curved runway approaches, only about 3 percent of eligible flights have used them, due in part to a lack of tools to help controllers manage aircraft using varying routes and equipment. Finally, NextGen's success will depend on effectively implementing automation systems for controllers that will enable key NextGen capabilities, including the use of satellite surveillance and data-link communications. For example, FAA's efforts to modernize automation systems at 11 large terminal facilities may cost much more and take longer than estimated because the agency has not finalized software and hardware requirements. FAA faces similar challenges in implementing its multibillion-dollar ERAM system, which processes flight data at en route facilities. FAA has worked hard to resolve previous software problems, and controllers are now using ERAM at 16 of 20 sites, at least part-time. However, considerable work remains to complete the effort by 2014 as planned. In addition, the ERAM contract currently costs about $12 million a month, and if this contract burn rate does not decrease significantly, FAA will need additional funds to complete the program. NextGen is at a critical juncture. Near-term operational benefits are needed to gain industry confidence in FAA's plans and encourage users to invest. Sustained leadership with clear lines of authority and accountability is key to developing an executable plan that is linked to the agency's budget and that resolves underlying causes for delays. Mr. Chairman, this concludes my prepared statement. I would be happy to answer any questions you or other members of the subcommittee may have. Mr. LoBiondo. Thank you. Thank you, Mr. Scovel. Administrator Huerta, the FAA Technical Center has been the primary facility for testing and evaluating NextGen technologies. Do you see that role changing for the Tech Center in the future? Mr. Huerta. I don't. The Tech Center serves a very important role for the FAA. It is our principal test bed. It is a place where we test deployment of new technology, where we do a lot of human-in-the-loop simulations, and where we run operational tests. I don't see that changing at all. Mr. LoBiondo. OK. The FAA is blessed with great talent at many different levels, and I have seen the outstanding work sort of up close and personal and the dedication at the Tech Center. How does the FAA plan to continue to utilize the expertise at the Tech Center to advance NextGen? Mr. Huerta. Well, the Tech Center serves for us as our principal test and evaluation platform. And in that capacity, it plays an important role in integrating the deployment of technology into the actual operation that is ultimately going to take advantage of this. NextGen is more than just a technological platform. It actually has to be workable for the users of the system. And so, in addition to ensuring that the technology will be useful for supporting our needs for air traffic in the future, we also have to understand everything involved in making it operational within the real world environment, and that is where the human- in-the-loop piece comes in. The Tech Center really is the place where all of those things come together, which enables us to make the determinations and the decisions as to how we actually deploy technology in the field. Mr. LoBiondo. I hope you can clear something up for me. On a couple of previous occasions we have asked you about the status of the facility's realignment and consolidation plan, which is required under the Modernization and Reform Act. And I believe you indicated that the plan was underway, and that the FAA was looking at the whole country; in other words, to be a very comprehensive plan. In the IG's written testimony, he indicates that the FAA has scaled back its plans and will focus only on an integrated facility in the New York metropolitan area. Could you clarify for us what the FAA is doing in terms of developing a comprehensive plan and how that meets with the mandate? Mr. Huerta. Sure. Those are two different things. For years, as you point out, we have looked at the question of how to realign and consolidate aging facilities. And we appreciate the thought and vision that went into the process that was outlined by Congress, and we recognize that you provided us with an important tool. As I have testified previously, we do have underway a very significant effort where we are looking at the whole country, and what we are doing is that--as you know, we have had difficulty in achieving consolidation of facilities in the past. And so to address the previous shortfalls that we have had in this area for facility consolidation, the FAA has taken a holistic approach, including our workforce and subject matter experts in developing the process and recommendations that will guide realignments of future facilities. We have a multidisciplinary work group of FAA and workforce representatives, and they are developing a process and recommendation for evaluating our existing terminal air traffic facilities for potential realignments. The draft process and initial recommendations have been briefed to several industry stakeholders, including the National Academy of Sciences and the National Customer Forum, which includes representatives of the airlines and of general aviation. Now, I recognize that developing this approach has been slower than what Congress has asked for. It has also taken longer than I would have wished, slowed in part by the management and financial challenges that we have faced. That said, we are creating an approach that has the ability to deliver much more efficient and effective infrastructure for the FAA. I anticipate that we will work with you here in this committee, in Congress, and with the aviation industry, to evaluate operationally viable scenarios for facility realignments and consolidations, and we look forward to briefing the committee on this. Mr. LoBiondo. Thank you. And the last question, Mr. Huerta, which I will ask you to, for the record, to provide the subcommittee in writing with a detailed status, and that is on performance-based navigation, I think we all can agree that is a cornerstone of NextGen. When you testified before this subcommittee earlier this year, you stated that the FAA's two reports on implementing performance-based navigation as required under the Modernization and Reform Act were forthcoming. So if you could provide to us in writing in detail we would appreciate that so we can review where that is. Mr. Huerta. Absolutely. \1\ --------------------------------------------------------------------------- \1\ Please refer to Mr. Huerta's status update in response to Hon. LoBiondo's question number 5 on page 48. --------------------------------------------------------------------------- Mr. LoBiondo. OK. I have, Mr. Scovel, I have questions for you, but in deference to the other committee members, I will now turn to Mr. Larsen. Mr. Larsen. Thank you, Mr. Chairman. I actually will start with Inspector General Scovel. In my opening statement, I discussed the proposed House transportation appropriations bill to provide $2.1 billion for a facilities and equipment account for FAA. If enacted, that would represent the lowest capital funding level for FAA in the history of the NextGen program. In your view, how would those proposed funding levels continue to affect the implementation challenges that exist in NextGen? Mr. Scovel. Mr. Larsen, we have conferred with FAA on that specific matter, as well as your staff. Our understanding is that at those funding levels the agency would be required to constrain its efforts greatly in regard to NextGen and in fact would have to devote almost all of its attention and much of its funding permitted by Congress to simply sustaining the current system as it exists today. Mr. Larsen. Administrator Huerta, could you comment on my question as well? Mr. Huerta. As you know, there are various components to our budget. The House bill increases operations funding enough to maintain day-to-day NAS operations, but it does jeopardize both near-term and long-term capital investments that are needed to rebuild the aviation system in the future. In particular, as the inspector general pointed out, the facilities and equipment account is where we have the greatest concern; the House appropriation bill is $623 million below the President's budget request and $439 million below what we have in fiscal year 2013. The House level would provide the lowest F&E funding level since 2000, as you pointed out in your opening statement. It includes both targeted and undistributed reductions, specifically $259 million of targeted cuts, of which $43.6 million, or 4.7 percent, is from NextGen programs, and $214.9 million, or 11.6 percent, from legacy programs. But there is also $364.3 million of an undistributed reduction, and alternatives for this allocation are being developed by our capital team. What this forces us to do is to make tradeoffs between continued maintenance of the current infrastructure and NextGen modernization efforts. The focus would need to be that a state of good repair is maintained, and NextGen capabilities supporting information sharing and programs that are nearing completion in fiscal year 2014, which provide near-term improvements, would be taken to completion. However, the NextGen programs just getting underway would likely need to be suspended. A NextGen slowdown would affect the economy. An Aerospace Industries Association study found that a reduction of 30 percent in the NextGen funding could result in up to $40 billion in lost economic output by 2021. It could cost 700,000 jobs by 2021 and as many as 1.3 million by 2035. I recognize these are difficult tradeoffs, but as I said in my opening statement, it winds up costing far more in the long term if we delay NextGen now. Mr. Larsen. And those, the budget numbers are numbers you lay out before the 2014 sequestration numbers kick in? Mr. Huerta. Yes, this is based on the House mark. Under a sequester scenario there are different flavors of it, and part of it depends on how the appropriations bills come out for the entire Government and whether they are consistent with the Budget Control Act. Mr. Larsen. Yeah. Mr. Huerta. Under a scenario where we would start the year on a continuing resolution with no anomalies, in an F&E context we would actually be somewhat better off than this, but far worse off in the operation account. Mr. Larsen. Yeah, right. Right. Last Friday you asked the RTCA NextGen Advisory Committee to develop a prioritized list of NextGen activities that would be triaged due to budget cuts and sequestration. Would you explain why you asked NAC to undertake that project and how it will influence FAA's NextGen strategy, Administrator. Mr. Huerta. We have had a lot of discussions in our industry consultation through the NAC and through other forums about the general climate of fiscal uncertainty. As you and the chairman and other Members have all mentioned, we are operating under significant fiscal constraints as a country as a whole. The industry has indicated, and we have agreed, that it would be prudent for us to have a clear sense of our key priorities to ensure that we have the maximum level of focus as we enter this more uncertain fiscal climate. As a general matter, I think that we all agree that we are in a far better place in a constrained fiscal environment if we are focusing on a state of good repair and perhaps needing to consider doing fewer things but doing them well, and seeing them through to completion, as opposed to an across-the-board reduction which only has the effect of delaying everything and jeopardizing benefits for delivery to the aviation community. What we are asking the NAC is, as an industry group which represents air carriers, general aviation, suppliers, manufacturers, where do they think the greatest focus needs to be placed in order to minimize the impact of sequestration. As we consider the tradeoffs here, what advice would they offer us on what our highest priorities should be? Mr. Larsen. Thank you, Mr. Chairman. And when I get to a second round, to the extent that other Members don't touch on the differences in testimony, I will explore that. Thank you, Mr. Chairman. Mr. LoBiondo. Thank you. We will now turn to Mr. Williams. Mr. Williams. Thank you, Mr. Chairman. I want to thank both of you for being here. Thank you today. I am from Texas, I am a business guy, and I look at everything like a business. In my district I have got Dallas/ Fort Worth Airport and Austin-Bergstrom, among a lot of smaller ones, so I am rooting for you. But I have a question, two questions actually, to you, Administrator. In reading the IG's comments, they mention about organizational culture has been slow to embrace NextGen's vision. And as a business guy, when you don't believe in the product, it is hard to sell it. It is hard to get involved in it. I know about that because I still use this flip phone, and I need to get away from it. And so what are you doing to have your folks understand that this is the future of where we are heading and to get them embracing it? Mr. Huerta. Thank you, sir. I would like to answer your question in two parts. First of all, the question of why is it the way it is, and then what are we doing about it. I think it is important to recognize that the FAA is governed very much by a safety culture. Everyone is very focused on maintaining the highest levels of safety in our aviation system. And what that leads to is a level of caution against trying things that are different, for a very important reason: Individuals are concerned about messing something up. We have a system that provides the highest levels of safety, and there is a general belief that we want to ensure that in deploying anything new that we are not in any way compromising safety. That is not at all to suggest that things don't need to change. We can always raise the bar on safety, and change is a big part of that. What we have found is that the best approach is through the collaborative processes that we have implemented in the last couple of years working with industry and working with our own workforce to actually do the very hard work of grinding through, what we want to deploy, what questions and concerns stakeholders have, and how to respond to them in a real way. That is the approach that underlies how we got ERAM back on track. We are now operating it in 16 of our air traffic control centers. That is the framework through which we are deploying advanced navigation procedures in north Texas and elsewhere, and we are actually reducing time associated with the delivery of those procedures and directly addressing the point made by the inspector general that publishing a procedure alone is not enough. You actually have to work with the operators to ensure that they have the tools that they need to actually deploy it. What we are finding is that we need to work with all of the stakeholders. We can't simply publish a new procedure and just issue an order and say make it happen. We really need to work through the full scope of the operation, and we need to be responsive to the questions and concerns that are raised by all the stakeholders in the system. Mr. Williams. Well, get them going. I will dump this flip phone if you will get NextGen cranking, OK? Mr. Huerta. That is a deal. Mr. Williams. All right, second question. I am also concerned as a business guy about what we see and what we call organizational instability, which the IG also talked about, inconsistent leadership surrounding the program. I know that you are filling some administrative areas, but it has been slow in doing that. And can you explain why there has been so many reorganizations and are we moving in a direction where we are going to have a full team? Mr. Huerta. I can speak to what has happened over the last couple of years for those that I have been a part of. When I originally joined the agency as Deputy Administrator, it was with the thought that I would oversee the NextGen portfolio. And as you know, I stepped into the Acting Administrator role soon after that. Since then, FAA reauthorization called on us to appoint a chief NextGen officer. We did bring in a new Deputy Administrator earlier this year, once I was confirmed as Administrator, and we did name Mr. Whitaker as chief NextGen officer. He is now in the process of filling out his team, and we are very close to naming a new Assistant Administrator for NextGen as part of the organizational restructuring that the IG touched upon. We implemented that restructuring a couple of years ago and it was very focused on elevating the profile of NextGen, taking it out of the ATO, and ensuring that it had the specific authority that the IG has mentioned in his testimony to work across all the lines of business of the FAA. I think that we are actually making very good progress. It has taken longer than I would like. Part of that was driven by the fact that for a long time I was two-hatted, serving both as the Administrator and effectively the chief NextGen officer. But I think that we are well launched to getting to where we need to be organizationally. Mr. Williams. That is good to hear. We need nine men on the field of play. Mr. Huerta. Absolutely. Mr. Williams. Thank you. Appreciate you coming by, appreciate your testimony. I yield back. Mr. LoBiondo. Mr. Capuano. Mr. Capuano. Thank you, Mr. Chairman. Gentlemen, I have been hearing about NextGen since the day I got on this committee, actually a little bit before that, and it sounds great. And I am one of those supporters because pretty much everybody I have talked to looks me in the eye and says, great idea, great program, I am for it. But I am starting to wonder. I mean, it has taken a really long time to roll that out. Everybody seems to be dragging their feet, not just the FAA, if you want the truth. Everybody is pointing to everyone else about somebody else's responsibility to pay for this or get this done. And I am starting to wonder to myself, especially now with sequester, if we are not going to be able to do, if we haven't been able to, and we are not likely to be able to do what we had originally wanted to do, why isn't it time to just kind of take a deep breath, not because the proposal is a bad proposal, but the situation has changed. There is obviously more problems. I mean, I like the idea that change and these kinds of things take second place to safety concerns. I don't have any problem with that concern. But it is obviously not what I had been led to believe 10 years ago, or 6 years ago, or 2 years ago, or 6 months ago. Is it not time to just kind of take a deep breath and for everybody just to relax, step back, look at where we have been, look at the moneys that we currently have, look at the problems that we have already faced and encountered, and still face and encounter, and say, you know what, maybe we have to make it a little longer, maybe we have to focus in on a few airports first, maybe we need to do something different so that we can actually live up to the expectations that we set forth? And I don't think that is a bad thing. I don't even think it is an anti-business thing. There isn't a businessman in the world that I know of that hasn't made a change in their investment plans or their business plan because they run into unforeseen obstacles. And I don't personally think that is a criticism of the proposal. I don't think it is a criticism of anybody or anything. It is just simply an acceptance of the reality. And I am just wondering what you think of that concept, Mr. Administrator, the idea of taking a deep breath, kind of getting everybody back in the room again and say, OK, here we are today, here is where we all want to go, how do we from this point forward, not based on a plan that was put together 10 years ago or 2 years ago, how do we get from where we are to where we want to be with the lessons we have already learned, including the financial restraints that we now face? Mr. Huerta. Sure. Thank you, Mr. Capuano. The plan that the FAA has developed is designed to have an overall architecture, but also to be flexible, to respond to what stakeholder requirements are, and the realities of how the industry is developing. I think that we are actually in a good place based on the investments that we have made over the last 10 years. Over the first 10 years, a lot of the focus has been on foundational technologies. What does that mean? The basic building blocks and platforms on which we build advanced capabilities over time. So those are new automation platforms for en route and our terminal environment. We talked about ERAM. We talked about how we had some hiccups on that, but we have addressed those. We are doing the same in our terminal program. We also mentioned ADS-B, which is a foundational technology. That is the GPS-based technology that enables us, that ultimately can replace radar across the country. Mr. Capuano. But, Mr. Administrator, if you have all the technology in the world, but people refuse to use it or won't use it for any good number of reasons---- Mr. Huerta. But let me come to that point. Mr. Capuano. Because I am running out of time. Mr. Huerta. OK. Well, the point is that what that now enables is for us to focus on delivering benefit. And the big focus for the last year has been on performance-based navigation. That for the airlines and the users of the system is a huge benefit because it has reduced fuel burn, reduced cost, and reduced environmental emissions. And that is what our metroplex initiative is all about. Let's take advantage of the investments we have made to date. Let's focus on delivery of benefits while, in parallel, we are looking at the longer term initiatives. Mr. Capuano. Mr. IG, would you agree with that statement? Would you agree with that approach? Mr. Scovel. I would agree with the approach that we are at a critical juncture, and that to some extent a reset is required. My reservation is that if the reset is to extend for an appreciable length of time, industry and the taxpayers will become even more frustrated with the situation that we find ourselves in today. I think essentially FAA is well positioned under the leadership of this committee and in close collaboration with industry to make just the kind of reassessment that you have suggested, Mr. Capuano. New leadership is coming in. FAA has established pretty good ties, my office believes, with the NextGen Advisory Committee, and the RTCA continues to function with them. The move last week to request priorities from the NAC, we heartily applaud. It is much needed, especially in this fiscal environment. I would urge the committee to hold FAA's feet to the fire now with the new leadership coming in and to instill, as our statement suggests, a new sense of urgency with NextGen, which has been lacking for much of the past decade. FAA has had the luxury of being able to proceed across a broad front. Now they have to narrow their attack along specific lines, and together with industry they need to identify those priorities---- Mr. Capuano. Thank you. Mr. Scovel [continuing]. PBN being the first and foremost. Mr. Capuano. Thank you, Mr. Chairman. Mr. LoBiondo. Mr. Meadows. Mr. Meadows. Thank you Mr. Chairman. Thank you both for being here. Mr. Huerta, I wanted to follow up on some of your written testimony. I think in your written testimony you said we have been transparent from the very beginning about what we intend to accomplish, and yet here we are some 10 or 11 years later with very little to show for it. You know, in 2004 we talked about the transformation of Americans' airport network. And then in 2006 we talked about an aviation revolution. In 2007, a wide-ranging transformation. In 2008 we talked about another transformation to the 21st-century technologies. In 2009 we talked about being forever redefined. In 2011, a comprehensive overhaul. And wide-ranging transformation in 2012. Then in 2013 we changed the rhetoric to be an evolution. And really when we talk about evolution, we think of millions of years. And so I get concerned about that. And then in the IG's report he talks about the 2009 internal FAA study, and it said that you did not specifically address risk-adjusted, realistically reflect the risk-adjusted technology in terms of feasible implementation as promised, your own internal survey. So wouldn't you say, isn't it fair to say that we have been maybe overambitious and unconstrained with regards to what we hope that we can accomplish? Mr. Huerta. I don't think we have. What we have adopted is a segmented approach to deployment of what is, we all agree, a very complex technological change and operational change in terms of how we move airplanes. And we have really---- Mr. Meadows. So you feel like you have accomplished---- Mr. Huerta. I do. Mr. Meadows [continuing]. What you set out to do 10 years ago? Mr. Huerta. I feel like we have made significant progress toward a very significant change in how we manage air traffic. Let me give you a specific example. Fundamentally, the ADS-B technology gives us a much clearer view of what is happening in the National Airspace System. That is very different from radar. A way to think about it is a radar picture is sort of the equivalent of a somewhat fuzzy view of what is going on because it is limited by the sweep of the radar. What ADS-B gives you is sort of the equivalent of HDTV. It is a much clearer and more precise view which enables you to move aircraft closer together. That makes for a much more efficient use of the system. Mr. Meadows. And you shared that in your opening testimony with regards to Atlanta and how we are able to do that. Mr. Huerta. Yes. Mr. Meadows. But really, help us understand, because NextGen was supposed to be this, you know, now we are moving aircraft closer together. But from a lot of the stakeholders we are seeing that their concern is that the FAA and many of your employees are not buying in. It is not a buy-in or lack of a buy-in in terms of the stakeholders. It is really a lack of a buy-in in terms of many of the people that work for you, is that not correct? Mr. Huerta. It actually goes both ways. Let's talk about what NextGen enables. It enables performance-based navigation. I talked about earlier how, in order to successfully deploy performance-based navigation, we must engage in collaboration. An airline might want a particular PBN procedure that is going to save fuel for them. They can request that we publish it, and in the old days that is what we would have done. We would have published it and then we would have found our operational difficulties with it and it wouldn't have worked. What we are doing now is we are sitting down with the airline, the airport, the controllers, the military, and adjacent facilities in the metropolitan area to ask the question, OK, these guys would like to have this approach which will reduce track miles flown, reduce their fuel burn--how do we make it happen? Mr. Meadows. All right. So based on these meetings that you have had over the last 10 years, what would you say is the probability of us seeing real transformation, not an evolution, but real transformation and redefining within the next 10 years? Are we going to make our, you know, 2025 deadline? By what I read, I don't see any way that we can do that at this point. Mr. Huerta. I don't know exactly what you would consider to be transformation, but I can say this. Mr. Meadows. What would you consider transformation? Mr. Huerta. I think we will be in a very different place where we will be handling more traffic, much more efficiently, with a higher level of safety, and reducing fuel---- Mr. Meadows. But if we don't know--OK, but if we don't know where we are going, if we are just making good progress, we are still lost. Mr. Huerta. No, we do know where we are going. We have an enterprise architecture that has specific building blocks. I talked about the foundational programs that we are building, and we are overlaying additional technological capabilities on top of them. And that is very clearly laid out in the NextGen implementation plan that we publish every year, along with specific milestones and schedules for meeting them. Mr. Meadows. Thank you, Mr. Chairman. Mr. LoBiondo. Ms. Johnson. Ms. Johnson. Thank you very much, Mr. Chairman. And let me express my appreciation to Administrator Huerta and Inspector General Scovel for being here. Of course, I have been listening to the NextGen debate in this committee now for quite a while. And I think I know why quite a bit of it has not been implemented: It is hard to do it without money. But I do look at the Inspector General's that controller policies and procedures have not been updated and remains an unresolved obstacle, which makes it uncertain when airspace users can expect widespread benefits. What is causing this delay other than some money, I know, and updating the controller policies? And as an addendum to that question, there is a small airport near Dallas in Mesquite, Texas--and I have had just about every airport around Dallas County now in the last 21 years or more--completed recently a new control tower funded, with the commitment that it would be furnished with air controllers. Now that it is finished, they can't get a commitment or an answer as to whether or not they will get this air controller. Could you comment on that and the previous question? Mr. Huerta. Thank you. Let me talk first about the question that you asked with respect to how do we integrate with controllers. One of the things that was identified in working with our industry stakeholders was that we needed to focus on rewriting the Air Traffic Control Handbook; that that is a very important provision in order to unlock the benefits of NextGen. In July of last year, we set a goal for this year to make progress in rewriting the controller handbook to keep up with modern air traffic capabilities in the NextGen era. And here is the specific issue we needed to address: what are the rules under which controllers will authorize and ensure that advanced navigation procedures can actually be operationalized, particularly in congested metropolitan areas? To accomplish this task effectively we have been working with NATCA, with aircraft traffic control management, and the aviation community to identify the most important changes for each of these groups. And we found that the requested changes fell into two categories: current standards that we needed to update as a result of new technology, and cases where changes have been made but the criteria that I was talking about for conducting advanced operations has not been completely established. We identified a consolidated list of 15 specific changes that would enable us to address these issues. We expect to complete 10 of them by the end of this fiscal year with the following 5 to be completed thereafter. The revisions to the handbook are things that we have to be very careful about, and we have to do them in accordance with our safety management systems. Safety management systems are a systematic and continuous management process to proactively identify, analyze, and mitigate safety risk. And these 15 changes are just the first step as we continue to work collaboratively with our internal and external stakeholders to write a long-term plan and to address these specific operational problems that you are talking about. Going to your point about Mesquite, Texas, I will need to check into the specifics of that and we will provide a response to you after the hearing. Ms. Johnson. Thank you very much. Mr. Scovel, you indicated in your written testimony that the FAA has made little progress in shifting from planning to implementation on NextGen and delivering benefits to the airspace users. Would you please expand on this statement, explain how you are measuring that progress? Mr. Scovel. It is very difficult to measure. And thanks, that was exactly our point. Over the last 10 years, FAA set overly ambitious NextGen goals and what it believed would be achievable in its 2005 progress report to Congress on NextGen. By 2009 those goals and the vision for NextGen had changed rather drastically, from a 2025 completion date to at least 10 years later, and in the view of the JPDO and the contractor who worked with them to complete that report, a final cost figure of two to three times the original $40 billion estimate. This changed the picture drastically but FAA did not communicate this to Congress. Since then, there have been other problems with FAA's organization of its NextGen effort, and now FAA finds itself confronted with a very difficult fiscal environment. It is time for FAA to look in close consultation with industry at what is most achievable in the short term. And our consultation with industry would lead us to recommend to FAA performance-based navigation--and we believe they are fully on board with that-- as well as continuing their emphasis with the automation platforms, ERAM, and substituting STARS for Common ARTS at their specific TRACON locations, and then confronting the critical design decisions that will be needed to fully maximize potential benefits from ADS-B and DataComm. Specifically, FAA must address level of automation that will be required and also the division of responsibility between cockpit and ground systems for managing aircraft. Until those design decisions are made, the true benefits of NextGen cannot be realized. Ms. Johnson. Thank you both. I yield back. My time has expired. Mr. LoBiondo. Mr. Graves. Mr. Graves. Thank you, Mr. Chairman. And, Administrator Huerta, I appreciate you coming in, as always, taking the time to come up to the Hill. My question is a little bit different. It does deal with delays, however, but it is on technology delay, which I was specifically speaking to some of the technology out there on spin, you know, or making aircraft spin resistant, which has been going on forever. And I know ICON has got some new technology out there and they are trying to get an exemption from the weight limit when it comes to light sport, which was kind of arbitrarily set, and I think that should be based on performance and complexity of aircraft. But that is a whole other issue. Mr. Graves. But I was surprised to find out that they applied for an exemption that is 15 months old. And I have got letters here from Senator Inhofe and Congressman Petri and various industry groups asking for some sort of resolution. I have got a letter from the FAA, too, on this saying that they would have a response to their request from you all at the end of last year, 2012. And I know I am kind of hitting you with this, and I don't intend to hit you blind side, I just would like to get an answer, have you get back to me and give me an answer on when they are going to have some resolution, because they can't move this technology forward unless they get an exemption and get an answer to that. So I would appreciate that very much, they need a decision on that. I am always interested in new technology, and particularly when it comes to Spin Resistance, Aircoupe started this way back in the 1940s, you know, now we have ICON doing and it is fascinating, as a pilot, it is fascinating. And that is one of the things obviously that gets a lot of pilots in trouble is getting into a stall spin situation. So if have you any comment on that, I sure would appreciate it. Mr. Huerta. I am not familiar with the status, Congressman Graves, but we will get you a response. Mr. Graves. OK. And I was afraid of that, I didn't mean to hit you blind side and that is the reason I am not going to press it today, but I would like a response right away on that. Mr. Huerta. Absolutely. Mr. Graves. I appreciate that, and thank you very much for coming in. I yield back, Mr. Chairman. Mr. LoBiondo. Mrs. Titus. Ms. Titus. Thank you, Mr. Chairman. Administrator Huerta, thank you for being here. You know, I represent Las Vegas and tourism and air travel are key to our economy. Forty-five percent of the people who come to Las Vegas come through McCarran Airport. I talked to the folks at McCarran before this hearing because I wanted to get some feel for how they are dealing with the problems that we are addressing here and the NextGen. And I am glad to report that they are pretty satisfied with what has happened. They give you good marks for what has happened so far. But like most people in the comments you heard today, they are concerned about when something else is going to happen and they would like to see that sooner rather than later. Well, it sounds like from listening to you and to the inspector general, that you are pretty aware of what the problems are, we are not telling you anything with these questions. I hear you talk about the identified management problems, the resistant culture, the need for reliable data. You addressed that with a monitor study, a change of personnel, better coordination with other agencies, more involvement with stakeholders. I appreciate all that. The elephant in the room that nobody wants to really talk about is money, now you have had to deal with a sequester, but if you look at the latest Republican Transportation appropriation bill, that cuts more than half a billion dollars from FAA. So how are you going to make any progress under those kind of circumstances? Mr. Huerta. That is a challenge. The House appropriations bill would significantly impact, I would say, devastate our facilities and equipment account, and that is the account through which we fund both the maintenance of our legacy infrastructure as well as the deployment of new capabilities. It is $623 million below the President's request, and $439 million below where we are this year. And so it is a significant challenge. It is for that reason, as I was talking about with Mr. Larsen, that we have asked industry to share with us what they would like to see as priorities if we need to deal with that. Personally, I believe that it is extremely important for us to stay the course. This is a very complex technological evolution, and it is one in which the United States has very significant leadership. We are working closely with our international stakeholders because air traffic is a global system, and trying to ensure that we have common procedures, common approaches to how we redesign the airspace, not just here in the United States, but internationally. And as a result of being where we are and the commitment that we have all made as a Nation to this, we are in a very significant leadership position, and in a place where we can really drive what the international standards are going to be for the entire aviation system worldwide. I think that for us to step back from that becomes a very serious thing. Aviation was invented in America and we have always represented the cutting edge of technology and it is important that we continue that. Ms. Titus. Thank you, I yield back. Mr. LoBiondo. Mr. Ribble. Mr. Ribble. Thank you, Mr. Chairman, and I want to thank both of you for coming back again. It is a little bit like Groundhog Day to me, it sounds a lot like last year's report that we got. We a got a relatively rosy report from the agency and a relatively negative report from inspector general and this year kind of the same thing. I guess I will start with you, Mr. Scovel, you have made a lot of recommendations over the period of time, dozens and dozens and dozens of recommendations. How do you feel the FAA has been responding to those? Mr. Scovel. Thank you, Mr. Ribble. Generally, FAA is responsive. Part of our audit process is to confer closely with the agency as we work our way through the audit. We have what is called an exit conference at the end where we present our findings and planned recommendations. FAA always gives us a very thoughtful effort in their assessment of those recommendations, and quite often concurs with those and we are pleased with that. However, an administrative point that worries us as auditors is that not only FAA, but other agencies in the Department take quite a bit of time to get their comments back to us and that raises questions to us about the timeliness and relevance of our work. I would say our relationship overall with regard to our recommendations with FAA is quite good. We have a number of open recommendations from past reports, specifically regarding NextGen. I could tick off a couple of those that we consider most significant. By the way, we have briefed FAA on our tentative findings on the current audit that forms the basis for our testimony this morning. We intend to focus our recommendations first on the critical path for NextGen implementation. We will focus as well on FAA's reorganization of its NextGen implementation entities to try to drive at some of the programmatic and organizational challenges that we discuss in our statement regarding leadership, organizational culture and the sense of urgency. Of our past recommendations from April 2012, the highlight was our recommendation for an integrated master schedule. In fact, we have highlighted before this committee and also before the House Oversight and Government Reform Committee, that this is one of our top five open recommendations across the entire Department of Transportation. The integrated master schedule will form the basis for FAA to make better informed choices regarding priorities, and sequencing, and also the consequences of decisions down range. The key is the ripple effect, if you will--specifically concerning time on many diverse and interdependent programs. That gets us to delay, and we understand from the users that their principle pain point right now is the perception that there has been a lot of time and undue delay in implementing NextGen capabilities. But we have also recommended to FAA in June 2010 that they document interdependencies between systems and procedures, that they identify critical path issues or decisions in terms of airspace changes, and finally that they assess safety and implementation risks of mixed equipage operations and develop corresponding mitigation strategies and policies. All those recommendations and those last three remain open from 2010. In fact, we understand FAA has been working to implement them, but until we have further meetings and documentation from the agency, we will not close them because we want to be able to report to the Congress that FAA has indeed responded fully to the intent as well as to a letter of those recommendations. Mr. Ribble. Thank you. Mr. Huerta. You talk a little bit earlier about the culture of safety at FAA, and I really want to commend FAA, I get an airplane every single weekend, and quite frankly, I never even think about safety. The airline industry and what FAA and NTSB have done over the last several decades has been a stunning achievement, quite frankly, to the point--you fly all over the country and not even be concerned about it to be quite honest with you. Is it possible, however, and I have seen this in other organizations where a culture of safety, I have seen employees who are so safety-focused that they hop on a parallel path of a culture of fear, where fear now pervades the fear of making any mistake whatsoever, inhibits them from making any change at all whatsoever and it can impede progress. Are you observing any of that? Is there any concern of that? Mr. Huerta. That is something that has about a concern of the aviation industry in general for a long time. I think the industry in its totality, and the FAA as a part of this, has really tried to address this issue head on through nonpunitive reporting mechanisms where individuals can identify a problem without fear of retribution. On the carrier side, it is programs such as ASAP where they can identify issues that might represent a safety risk so that they can be dealt with. On the air traffic side our counterpart is ATSAP, where controllers can identify are there procedural issues? Are there challenges? I think what you are talking about is extremely important. It is something that we are very focused on and that is really the entire underpinning of our collaborative efforts to try to bring all stakeholders together and recognize that air traffic management is a shared responsibility. Everyone wants to see a safe system, an efficient system, and they want it to be adaptable to new technologies and to new operational characteristics. That is a very positive development. The downside of it is that it takes time, because it requires you to build levels of trust, levels of understanding, and a familiarity and working relationship, which is really critical to ensure that you are able to deliver actual benefits. While it takes longer, I am all for it, because you get a better result. It is a result that sticks, and it is a result that people can actually use and which really delivers benefits. Mr. Ribble. Thank you very much. Mr. Chairman, I yield back. Mr. LoBiondo. Thank you. Mr. Scovel, you talk a little bit about the integrated master schedule. Did you say and did I miss what you believe the status of the integrated master schedule is? Mr. Scovel. Thank you, Mr. Chairman. I didn't say and I appreciate the opportunity to clarify that. FAA is working on that recommendation. We are informed that by December of this year, FAA anticipates completing that work. We will have a chance to look at it, and we will assess whether it meets the intent and letter of the recommendation, and perhaps be in a position to close it at that point. Mr. LoBiondo. You do believe that is key to how we move forward? Mr. Scovel. It is key and the effort is underway on the part of FAA. Mr. LoBiondo. You identified some of the challenges and development and implementation of NextGen, could you tell us what you believe the problems are? I mean, is this funding related? Is it organizationally related? What do you believe is the root of this? Mr. Scovel. Mr. Chairman, we don't believe looking at the past record that funding has been a problem. Congress has been fairly generous with the agency for its NextGen lines of businesses, to the tune of $3.8 billion since 2008. As I mentioned earlier, FAA has had the luxury of being able to try to proceed on a pretty broad front across transformational programs, both longer range as well as trying its hand at some of the near-term improvements that the users have been most eager for. Now the situation is different with regard to funding and FAA will have to make some very tough priority decisions in consultation with the users. However, there are programmatic and organizational challenges that are outlined in our statement concerning organizational culture, inconsistent leadership, leading to a different messaging of vision and so forth. Programmatic problems have led to some of the technical difficulties that the agency has encountered, specifically with ERAM, which would be the best example of that. We anticipate the agency will also encounter similar challenges as it modernizes its automation platform in the TRACON facilities. So all of those technical programmatic and organizational challenges persist with NextGen. We would say while funding in the past may not have been a problem, certainly it is, as was mentioned earlier, the elephant in the room for FAA and this committee today. Mr. LoBiondo. Do you have any specific recommendations for either Congress in general, or the Transportation Committee or the Aviation Subcommittee of what additionally we can or should do to help move this along? Mr. Scovel. I think Administrator Huerta has laid out a pretty good outline of what he thinks the agency needs in order to advance NextGen, even facing the difficult fiscal challenges that we all know he faces today. I would urge the committee and Congress to hold FAA's feet to the fire, and use our office as your tool to help you do that. We would welcome the opportunity to further work with you and the agency to review FAA's programs and plans, to see whether it has made good on much of what Administrator Huerta has said today regarding prioritization--further collaboration with users and its workforce, the near-term steps with PBN and metroplex improvements, automation platform modernization with ERAM and at the TRACONs, and then confronting the very difficult critical design decisions regarding divisional responsibility between cockpit and ground facilities and the level of automation. Only when those decisions are finally made--and they are difficult policy decisions, not within the purview of my office, but certainly for the agency and the committee--will the long-range benefits of ADS-B and DataComm be put in place. If final benefits are ever to be felt by the taxpayer, we believe it will be in FAA's ability to consolidate and realign its facilities as ADS-B fully reaches its potential--perhaps to make adjustments to the workforce, certainly to close some of its most aging facilities and to consolidate those. But those are difficult policy decisions for the Administration and for the Congress. Mr. LoBiondo. Mr. Huerta, is there anything additional you can think of or suggest that we can do from this end to help you in your efforts to this humongous task? Mr. Huerta. I think that it is important that we all recognize that this is a very large and complex program and, as we have talked about, we have built an excellent foundation where we can now add additional capabilities. As you heard from the inspector general, we have been in discussions and have been responsive to many of the recommendations made by the inspector general. In fact, in their most recent review of the ERAM program, the inspector general acknowledged that significant progress had been made in getting that program back on track. I think that where the committee can be helpful is to go back to where we were with FAA reauthorization and recognize that we had all identified, as a country, that this is an extremely important initiative to enable us to provide support and to maintain leadership for an aviation industry. We all knew then that it was an incredibly complex undertaking, but that the cost of not doing it greatly exceeded the cost of doing it. We need to keep that in mind as we go through this difficult climate in the years ahead. Mr. LoBiondo. Mr. Larsen. Mr. Larsen. Thank you, Mr. Chair. First off, I would ask unanimous consent to enter some QFRs from Mr. Nolan. Mr. LoBiondo. Without objection so ordered. Mr. Larsen. Thank you. Inspector General Scovel, getting back to some of the things you noted, you testified initial plans are NextGen targeted 2025 at the cost of $40 billion. And your office said this was overly ambitious and unconstrained, and you talked about some of the specific concepts and capabilities that were part of initial plans for NextGen, and whether FAA is on track to achieve them by 2025. Can you pick, is there a poster child for this? Mr. Scovel. For the failure to meet a 2025 deadline? Mr. LoBiondo. Right, yeah. Mr. Scovel. I would say it is a combination, sir, between ADS-B and DataComm at this point. Progress has been made on ADS-B in terms of installing the ground infrastructure, although that has been delayed from 2013 to 2014, so we continue to see friction there. Demonstration projects are in line and underway, such as greater coverage in areas where we don't have radar--Gulf of Mexico and Alaska, for instance--and a few other demonstration projects around the country. But as far as being able to demonstrate to users who will bear the ultimate and quite large bill to equip with ADS-B In--and that will be the game changer for them as well as for FAA--the agency hasn't yet been able to confront those decisions. It may be simply a matter of time and in a couple of years they will be able to do that, but if that slips, 2025 is well off the table. DataComm is an essential program for NextGen, but it is a program that has had its own fits and starts through the years. You may remember, sir, that it began initially in 2003 after $100 million investment, but was terminated in 2005 for technical difficulties among other problems. It was resurrected last year. It is an expensive program but users have long memories, and they see that some users in the middle part of last decade actually spent to equip and then had, in their view, the rug pulled out from under them when the FAA had to terminate the program in 2005. They are very reluctant to repeat what they view as a mistake and so they want to see FAA make solid, consistent and prolonged progress on DataComm before they spend more money on it. If ADS-B and DataComm continue to lag in their view, there is no chance of 2025. Mr. Larsen. Thanks. Before I asked Mr. Huerta to comment, I just never thought I would be here long enough to have anybody say you might remember back in 2003, it is getting to be here a little long. Administrator Huerta, you testified though in your written testimony FAA's delivering NextGen on time and on target. Here are a couple of examples where there are obvious concerns. Can you address that? Mr. Huerta. Yes, the premise that as a result of individual delays causing the whole program to be delayed I think is fundamentally not correct, because what NextGen is is a series of interrelated programs, and admittedly, we have experienced delays with some of them. But the approach is also based very much on showing that we have the flexibility to recover from them and to ensure that we can reorder delivery of things so that we can meet the overall objective, which is delivery of the benefits that we have always talked about. I would like to address the two things that the inspector general has talked about, ADS-B and DataComm as illustrative examples. ADS-B capability is truly foundational. We are delivering the ground stations, and that will complete that aspect of the project. What the inspector general talked about was how we ensure equipage for ADS-B In. Well, one of the things that we thought important was we need to consult with industry to understand the dynamics associated with that and what they want to see. So we convened an aviation rulemaking committee to provide advice to us and to raise issues that they want to make sure that we take account of before we were to issue a mandate. That is something that we are carefully evaluating. As I talked about earlier, these are necessary consultative steps; it takes time but gets us to a better outcome. Because what I don't want to have on the back end is a big fight about whether we have got it right. We want to get it right the first time. And that ultimately enables us to ensure expeditious deployment when the time comes. On DataComm, this is one that is at a very critical point. There are three factors that affect it. One is the capabilities that will be deployed as a result of DataComm. The second is ensuring that we have the highest level of coordination with our European counterparts who are looking to deploy a similar technology. We want to ensure interoperability and consistency across the Atlantic. Working with them on standards and on calendars is extremely important. And the final point is funding. DataComm is a program that is just getting underway. And as the inspector general pointed out, it is a game changer, it is one that really does cause significant operational benefit, but given where it is in its planning cycle and our funding choices, that is one that does very much concern me in terms of its voidability. Mr. Larsen. Thank you. I have further questions, I will wait for the third round, I see some other Members have returned. Mr. LoBiondo. Mr. Meadows. Mr. Meadows. Thank you, Mr. Chairman. I wanted to follow up a little bit. Mr. Huerta, when we were talking about successes earlier, you brought up the ADS system and it being a success of NextGen. And yet when I look at your testimony, where you highlight it, you talk about UPS being able to save some fuel, you talk about Jet Blue being able to save 100 miles, it doesn't sound like a great success story. In fact, when I talk to many of the people in the industry, their comment is that ADS, for all practical reasons, is not being used. How would you comment on that? Mr. Huerta. Well, what it enables is the use of performance-based navigation. Mr. Meadows. I know it enables that, but is it being used? Mr. Huerta. That is what they want and that is what the metroplex program is focused on delivering. Mr. Meadows. I understand that is what it is focused on. Is it being used? Mr. Huerta. It is. Mr. Meadows. Across the industry. So I went out to all the stakeholders, the majority of them would say, this is a great success, this is--we are spending $40 billion worth to implement it and use it, is it being used that way? Mr. Huerta. I think if we worked through particular metropolitan areas they would acknowledge that they are seeing benefit. I talked about Atlanta, how we are able to increase departure rates at Atlanta, I talked about north Texas, how we are able to deconflict---- Mr. Meadows. But that wasn't in your testimony, but you are saying that is a direct success of ADS. Mr. Huerta. Yes, yes. Mr. Meadows. OK. So if I called the Uniteds and all of them, they would agree with you that Delta, that this is a great success and they would be applauding you on this. Mr. Huerta. They would agree that what we have been able to deliver as a result of technology is more performance-based navigation procedures. Now they still want more, and they are not completing where they want to be, but they would say that yes, they do benefit in particular programs. Mr. Meadows. So how do we measure success? I am all about results and not spending this. And earlier we talked about success, the IG has been very detailed and perhaps some would say critical in terms of where we have been with this. At what matrix do we look at, since most of the stakeholders are saying that we haven't really adopted ADS, you have put in--it gets back to what Mr. Williams said, he is using a flip phone. I can use a Smartphone if all I am doing is making phone calls, it doesn't do me any good, and that is what it sounds like, we have a lot of technology out there that is not really being implemented across your agency or used fully, would you agree with that? Mr. Huerta. I would agree with the point that as you deploy technology, there is a period of time where utilization needs to catch up with it; that is true for any technological revolution. Mr. Meadows. Sure. Mr. Huerta. And that our focus needs to be on how to ensure that users are taking advantage of technology that is already deployed. Mr. Meadows. So how do you ensure that, because to date, we haven't really assured that, so how would you---- Mr. Huerta. We are. That is entirely what our focus on performance-based navigation is all about. Now we have put on our Web site, and we have made available specific metrics that measure how we actually meet the business objectives that the users have associated with the deployment of these. Mr. Meadows. So who puts forth the grade? I mean, you put it on a Web site, how are we meeting it, who grades you out? Mr. Huerta. Ultimately it only works if it is delivery and benefit to the users and I understand that. And I understand that we have to continue to focus on what it is that they require for the delivery of the capabilities that they want, we get that. Last summer there was a lot of discussion around a particular runway configuration in Chicago, so we focused in on what we could do to eliminate conflicts through the use of PBN, and we have been successful in doing that. Before that, there was a lot of concern about what could be done to increase capacity in Atlanta. That is what led to that 10-percent increase in departures. We need to be responsive. Mr. Meadows. I am running out of time, so if you can answer this last question for me, out of the industry, out of the stakeholders, what percentage of the stakeholders are you using ADS and really seeing a significant advantage out of that, what percentage of the stakeholders are using it? Mr. Huerta. I think a better way for us to respond to that is what percentage of time or procedures actually being used in particular metropolitan areas, and we can get you some information on that. Mr. Meadows. Well, I would like the answer to the other question I asked you too, what percentage of stakeholders? And with that, I thank the chairman and I yield back. Mr. LoBiondo. Ms. Johnson. Ms. Johnson. Thank you very much. I would just like to ask if I can depend on your department to have a briefing with my office as it relates to Mesquite Airport. Mr. Huerta. Yes, absolutely. Ms. Johnson. Thank you very much. Mr. LoBiondo. Mr. Scovel, do you think that ADS-B is being widely used now? Mr. Scovel. No, I don't think it is being widely used now. In some locations, sure, such as over the Gulf of Mexico, Alaska, Philadelphia, and Memphis areas where demonstration projects are in place. Elsewhere, it is not widely used. And as far as being an enabler requirement for using PBN, performance- based navigation in specific metropolitan areas, our review of the FAA data shows that it is not either. For instance, our statement notes that in three major metropolitan areas where certain RNP procedures are in place, Chicago, New York, and right here in Washington, only 3 percent of the eligible flights are able to use those RNP procedures. The sticking block in most instances is not with the controllers themselves or their outlook but their training and their ability to manage those advanced procedures. They don't have the tools, they don't have the revised handbook, they don't have the new policies, and they haven't had the necessary training. It is entirely understandable and proper that they should decline to grant authorization to aircraft that request to use RNP under those circumstances. But if we don't have the ultimate enablers for the controllers at this point and their level of training, then they won't get that user and that aircraft across the goal line. Mr. LoBiondo. Do you want to comment? Mr. Huerta. What I would add is which why we are so focused on dealing with how we make this operational in focusing on the controller handbook, focusing on working with all of the stakeholders, and ensuring that a procedure is not published. I mean, as we--when we deploy a new procedure, what we have to focus on in very granular terms is who wants to use it, who is able to use it, and how does it mix with other traffic in that area. And we can only do that, not in a big global training session, but by working with specific work groups, in specific metropolitan areas to really focus on very precise procedures, and how do we ensure that they get used. That is what the metroplex initiative is all about. And while people may be critical that it doesn't take time, I think it is important not to lose sight of the fact that we have invested significantly in trying to tackle that specific problem, and we are seeing benefit as a result of it. Mr. LoBiondo. Really, I think this has been very good and very helpful for us to sort of understand a little bit better. Trying to be fair, from a timeframe, do you think we would have additional positive news 3 months, 6 months a year? I mean, what do you think it will take to get to another level here, Mr. Huerta? Mr. Huerta. The thing that I am most concerned about is the fiscal uncertainty between now and going into the next fiscal year. Here is why. We have spent a lot of time talking about delivering benefits and ensuring users have that. And you have heard from me that the way we ensure that we are able to deliver benefit is through very intensive, collaborative processes with industry, with controllers and with the agency in very granular terms about ensuring that we are able to take advantage of the technology that we are deploying. That costs money, and that is something that is--has been for me--a very high priority with how we use or operate and our F&E resources. As we look at an uncertain fiscal climate, it presents us with a choice that we don't like which is, do we retreat to a base operation and not try to do new things, or do we continue to stay the course on deploying of these new advanced technologies so we can deliver the very benefits that we all say that we want to deliver? And as I look at where we are in the balance of this fiscal year and the uncertainty we face going into next year, we do have to resolve that question. Mr. LoBiondo. Thank you. Mr. Larsen. Mr. Larsen. Thank you. Inspector General Scovel, in your written testimony, you stated the FAA hadn't yet made a key design decision regarding how much responsibility for tracking aircraft will be delegated to pilots versus the duties that would remain for air traffic controllers. Could you explain why that is a key decision? Mr. Scovel. Thank you, Mr. Larsen. Yes, it is a key decision because heretofore, pilots haven't had that type of responsibility. It has rested with controllers on the ground. For pilots to undertake that, of course their employers will have to agree, they will have to be trained, the aircraft will have to be equipped, controllers will have to change their outlook from one of air traffic control to air traffic management. That really is a revolutionary step. Right now it appears to us that until ADS-B is mandated, and those requirements specified, it is very much an open question as to whether that delegation of responsibility to the cockpit is going to take place. Mr. Larsen. Administrator Huerta, do you care to respond? Do you still see this happening? Mr. Huerta. I do see it happening but I differ with the inspector general that there is a magic day where a decision is made and everything changes. The way I would characterize it is that as we deploy technology, we need to work through respective responsibilities of users of the system in terms of what they actually mean. NextGen, by definition, is a transformation from a command and control environment, as the inspector general pointed out, to a shared responsibility for air traffic management. But how we deploy that is what we need to discuss. And that is something that is not a black and white, we decide that one day and move forward; that is an operational discussion of actually how do we make that real in specific congested airspace. Mr. Larsen. Inspector General Scovel, with regards to the design decision on the number and locations of air traffic facilities needed to support NextGen as a key decision, can you layout why the IG says that is a key decision? Mr. Scovel. Number and design of facilities? Mr. Larsen. Yes. Mr. Scovel. It is a key decision because if the full potential of all of NextGen's programs are to be realized, it might be possible for the current configuration of the NAS to be very radically different from today in terms of the number of facilities, their location and the workforce that is required to staff them. As the Administrator has pointed out, that is a continuing discussion that needs to take place. Both the agency and the committee, the full Congress, need to understand what the possibilities are in that area, and then make a difficult policy decision as to whether to embark in that direction. After all, in the final analysis it is jobs, and we are also talking about Federal presence in areas across the entire country, north, south, east, west. The will of the Congress will be paramount in that area, but it is not a decision that can rest exclusively with the agency or with the industry. We acknowledge that difficult policy matter and continuing discussions have to take place. Mr. Larsen. Administrator Huerta, any additional comment on that. Mr. Huerta. I agree. Mr. Larsen. I have a question from a member not on the committee, I want to ask it, for Administrator Huerta, it does deal, if the chairman will indulge me with Asiana flight 214 about testing of employees of foreign carriers and whether or not they should be required to undergo mandatory drug and alcohol testing following a crash in the U.S., we require that for domestic pilots or domestic carriers, but are not able apparently to require of foreign pilots of foreign carriers. Does the FAA have a position on changing that? Mr. Huerta. Sure, as you know the FAA does require U.S. operators to conduct drug testing of pilots following accidents. And you also pointed out that FAA regulations do not apply to foreign pilots or foreign airlines. In order to do that, we would need to undertake a rulemaking, but I want to step back for a minute and talk about the broader global context in which this operates. Changes to international standards on post accident drug and alcohol testing are most likely to occur if there is multilateral support for many countries. And the forum through which that is done is the International Civil Aviation Organization. ICAO standards do not presently require that member States establish biochemical testing programs to detect or to deter inappropriate drug or actual use. However, what they have is something called a recommended practice. And the recommended practice states that ICAO member States shall ensure as far as practicable that all license holders who engage in any kind of problematic use of substances are identified and removed from their safety critical functions. We, the U.S. Government, believe that the global aviation community would greatly benefit from the development of clearer ICAO standards in that regard and would be supportive of those efforts. And we believe that it is appropriate to work that in a multilateral context. I would caution against unilateral regulatory action on the part of the U.S., because we have to consider the implication of other States taking unilateral actions that would affect our crews and our carriers in their respective countries. So we would push to deal with this in the international setting through ICAO. Mr. Larsen. I understand. And finally, my last question is I had asked in my opening statement about the letter I sent to you all about metroplex--sending out metroplex initiatives because of sequestration and was looking forward to a formal response. Mr. Huerta. I will be providing you a formal response shortly in writing, but I'd like to highlight some of the things I will be talking about in that. The collaborative part of the metroplex program was stood down in mid-April as a result of sequestration. These are the collaborative report groups we have for air traffic controllers. We anticipated needing to return controllers to their home facilities in order to move air traffic as a result of reduced hours. We approved the restart of these projects after we received the one-time authority to enable us to cancel the furlough. We have designated funding operations facilities engineering activities in the affected en routes in terminal air traffic control facilities in order to enable these projects to move forward. We are still assessing what the long-term impact of that is on schedule because of necessity. We need now to reassemble teams, get caught up in terms of work that was underway in order to enable us to take this high-priority program and get it back to where it needs to be, but yes, we did have to reduce those activities as a result of the sequester. Mr. Larsen. Under a CR environment, I assume that we continue under a, what I would put long odds on, under regular order environment where we actually pass all the bills, appropriations bills by October 1st that would continue, but under a sequestration environment, you would have to return to make a decision on whether to continue those? Mr. Huerta. Absolutely. Because under a CR environment with sequester we would see a very significant reduction to our operating budget, and that is how we fund this. Mr. Larsen. And that is how you fund that. Yeah, good, all right. Thank you very much, thank you. Mr. LoBiondo. Mr. Huerta, Mr. Scovel, we thank you very much. This has been very helpful. I hope we can continue to work together to try to see future progress and with that the hearing is adjourned. [Whereupon, at 11:45 a.m., the subcommittee was adjourned.]