Congress gears up for driverless cars Presented by Raytheon Intelligence & Space

With help from Heather Caygle, Lauren Gardner and Jennifer Scholtes

CONGRESS GEARS UP FOR DRIVERLESS CARS: Now that the Department of Transportation has settled on a six-month timeline to offer firm guidance on driverless cars, Congress is joining the mix: The Senate Commerce Committee will hold a hearing on autonomous vehicle technology in the coming months that will focus on “how the federal government can play a constructive role.” Chairman John Thune says DOT’s announcement was a step in the right direction, “an opportunity for this administration and Congress to work together. … I urge the administration to work collaboratively with both Congress and private-sector innovators in setting program priorities,” Thune said in a statement.


The details of the plan: By the end of July, the agency will offer best-practice guidance for autonomous vehicle manufacturers, along with model state legislation. And the federal agency is planning to put its money where its mouth is: Transportation Secretary Anthony Foxx is proposing $3.9 billion in the next 10 years to fund pilot programs “that help accelerate the development and adoption of safe vehicle automation.” “This won’t be the final chapter in the story of automated vehicles,” Foxx said in Detroit, “but I think it will be a huge step forward.”

It’s good news for automakers, which have grasped for direction from the feds for years. Curt Magleby, Ford’s VP of government relations: “Flexibility and a new way of thinking will be essential to accelerate innovation and we look forward to working together with the Department of Transportation to help advance automated vehicle technology.”

A call for local-level involvement: Foxx indicated that some of the pilot program money will be earmarked for vehicle-to-infrastructure technology,and that means states and cities are going to have to get in on the action — despite the fact that they’ve largely taken a backseat in ushering in the age of self-driving cars. Only 6 percent of long-term transportation plans in cities around the country include any mention of autonomous vehicles, according to a recent report from the National League of Cities. MT talked to one of the authors of that report, Brooks Rainwater: “This announcement will provide an impetus for city leaders to focus on this much more, by connecting it to federal dollars,” Rainwater said. “Previously, it didn’t seem like [self-driving car technology] was so imminent. But it’s becoming clearer and clearer that between 2020 and 2030, you’re going to see these vehicles on the road, and cities need to prepare.”

IT’S FRIDAY: Good morning and thanks for tuning into POLITICO’s Morning Transportation, your daily tipsheet on all things trains, planes, automobiles and ports.

MLK pause: MT will be on hiatus Monday in honor of Martin Luther King Jr.'s birthday.

MT was delighted to stumble across this ad from a 1950s issue of the Saturday Evening Post illustrating a “driverless car of the future.” The caption promises “no traffic jams … no collisions … no driver fatigue.” It’s weirdly prescient. One thing the ad got wrong: the idea that a family traveling in a driverless car would use the time to play board games and craft paper airplanes — apparently, folks in the 1950s didn’t get the memo on smartphones. Send other throwbacks here: [email protected] or @martinepowers.

the side of the busstop woman

trying to drag her bag

up the front steps before the doors

clang shut i am on her side

GOP DEBATE’S MEASLY TRANSPO TIDBITS: Transportation and infrastructure issues got just as little love during last night’s GOP primary debate as they have in all the other rounds of this political sparring tournament. The most noteworthy mention during the pre-game B-lister debate: Mike Huckabee said we shouldn’t be giving foreigners visa-free access to the United States. Then asked whether ending the Visa Waiver program would shut down international commerce, he said “it does not shut down international commerce, but it may slow it down. And you know what, a slowed-down commerce that is making us safer is worth it.”

During the main debate, Chris Christie talked up the transportation benefits of repatriation, saying he would bring overseas money back to the United States and dedicate it to “rebuilding infrastructure … and it would rebuild those roads and bridges and tunnels.”

** A message from Washington Auto Show Public Policy Preview Days: “The Power of Mobility,” two days of briefings on issues at the intersection of the automotive industry and public policy on January 20 th-21 st. Explore how technology is making our nation’s roads and vehicles safer and smarter. The Event schedule is available at www.washingtonautoshow.com/policydays. **

EU EMISSIONS RULES ‘HURT’: Even though new emissions targets in Europe are weaker than initially proposed, carmakers are still complaining that they won’t be able to meet expectations, POLITICO Europe reports. The new requirements were approved by EU country experts in October in the wake of the Volkswagen scandal, and set out a limit on NOx emissions that diesel carmakers must meet by 2020. Erik Jonnaert, head of the European Automobile Manufacturers Association, told POLITICO that even the final compromise “will hurt business big time” and “may even have a major impact on whether we will be, as industry, able to meet the 2020 target on CO2 emissions.”

ON THE ASCENT: The picture is rosy for the global aviation industry over the next 18 months, Moody’s says in its new report. That’s mostly due to the effects of low fuel prices and growing passenger demand. Expect profit margins to increase, but only modestly, Moody’s warned: “We do not anticipate that the prolonged decline in the price of fuel will lead to a further meaningful expansion of industry operating margins. Higher labor costs; continuing, but easing, pressure on fares; fuel hedging; and a potential further strengthening of the U.S. dollar will mostly offset the benefits of a further slide in fuel prices, limiting the prospects for more meaningful margin expansion.”

SHAKING UP THE STATUS QUO: Canadian Pacific is making a case for aggressive change in the railroad industry — and it believes the necessary change can only come by taking over Norfolk Southern. In a white paper published this week, “A 21st Century Railroad for a 21st Century Economy,” the rail company argued that “a combination” with Norfolk Southern would offer widespread benefits and “enable far better utilization of existing infrastructure, … introduce alternative options for re-routing traffic around areas of congestion, … create new opportunities to generate the most efficient route for rail shipments.” From the paper: “The status quo is not an option for North American rail. Change is necessary to support continued economic growth, and that change needs to happen now.”

Peach State problems: Georgia Sens. Johnny Isakson and David Perdue say they're concerned a potential merger between Canadian Pacific and Norfolk Southern would spell bad news for their state’s economy. In their letter to the Surface Transportation Board, they argue that a merger could result in disinvestment from local rail operations. Our Heather Caygle adds some context: “Norfolk Southern has an economic stronghold in Georgia — it employs 4,700 people, operates 1,700 miles of track there and maintains its operational headquarters in Atlanta. … The GOP lawmakers also weighed in on the rumor that CP CEO Hunter Harrison would leave his current position and take over executive operations at Norfolk Southern while the merger was pending before the STB, calling that issue ‘of particular concern.’”

CSX chimes in. From the Florida Times-Union: “I really don’t think mergers within the industry in any form make much sense,” CSX Chairman and CEO Michael Ward said. He went on to say that the railroad industry is in the middle of a “freight recession.”

OPPOSITION TO USER FEES: When MT caught up with Rep. Peter DeFazio earlier this week, we asked him about Rep. Mike Pompeo’s POLITICO op-ed, “The Wrong Way to Fix the FAA,” and concerns that the drafts on FAA reauthorization would rely too much on user fees. DeFazio said he’s got some of the same apprehensions. “The user fee concept, not addressed in any detail by the chairman at this point, would seem to hit very hard at cargo airlines, business aviation, and potentially commuter aviation, and general aviation. So he is struggling to try and mitigate opposition, by many groups, to his plan.” DeFazio said his alternative would push less in the direction of user fees. “I’m developing an alternative to the chairman’s plan that I think would cause much less concern among the general aviation community. … I have a plan that I think most of those groups would find much more acceptable. … When he puts his bill down, I’ll put mine down shortly thereafter."

THE LOBBYING LIFE: POLITICO Influence reports that “Jeff Shockey, staff director for the House Permanent Select Committee on Intelligence, is Boeing's new VP of legislative affairs. He succeeds John Shank, who's retiring. Shockey previously spent six years as the staff director and deputy staff director for the House Appropriations Committee and was a staff assistant for former Rep. Jerry Lewis (R-Calif.) and worked for the government relations firm Copeland, Lowery & Jacquez.”

THE ‘SOCIAL’ SECRETARIES: The Washington Post reports that President Barack Obama’s Cabinet has been celebrating a pre-State of the Union tradition of dining together at the swanky Hill eatery Monocle Restaurant — a ritual that was started by former Transportation Secretary Ray LaHood (along with former HHS head Kathleen Sebelius), and has continued to be hosted by Foxx and his HHS counterpart Sylvia Mathews Burwell.

THE AUTOBAHN (SPEED READ):

— For the “luxury-minded vegan”: Tesla to offer synthetic leader in new Model X SUV. The New York Times.

— "D.C. Council member Jack Evans now leading contender for Metro chairman." The Washington Post.

— Renault production sites raided in reported emissions probe. POLITICO Europe.

— “How Self-Driving Cars Could Make Streaming TV the Next Radio.” The Wrap.

— “Uber fined $7.6 million by California utilities commission.” The Los Angeles Times.

— Uber launches app-based political campaign to rally customers in Miami county commission fight. The Miami Herald.

— Long read: "United's Quest to be Less Awful … at least the snacks are free again." Bloomberg Businessweek.

THE COUNTDOWN: DOT appropriations run out in 258 days. FAA reauthorization expires in 77 days. The 2016 presidential election is in 297 days.

** A message from Washington Auto Show Public Policy Preview Days: This two day event will launch Wednesday, January 20th with “MobilityTalks”. A Capitol Hill Panel will explore how technology is making our nation’s vehicles, roads and infrastructure safer and smarter thus transforming the way we live, work and travel. Held at the Rayburn House Office Building Gold Room, the topics of cybersecurity, spectrum sharing, data analytics, and shared-use mobility will be discussed around connected and autonomous vehicles. The events continue Thursday, Jan. 21 at the show site for a daylong schedule of press announcements along with a sneak preview of the show floor. The day launches with a morning keynote address from John W. Mendel, executive vice president of American Honda Motor Co., keynote government address by Mark Rosekind, NHTSA Administrator, press conferences, a plenary session by SAE International and concludes with an evening VIP Sneak Peek Reception. The Event schedule is available at www.washingtonautoshow.com/policydays. **

Follow us on Twitter Kathryn Wolfe @kathrynwolfe



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