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— The House Oversight Committee is investigating whether Transportation Secretary Elaine Chao used her position to benefit her family’s shipping company, the Foremost Group.
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— Federal safety investigators are planning to soon put out a formal recommendation as part of their ongoing probe into a limousine crash in New York last year that killed 20 people.
— The Surface Transportation Board has proposed changes to the way it reviews freight rail rate disputes.
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CHAO UNDER THE MICROSCOPE: In a letter sent to Chao on Monday, Oversight Committee Democrats asked for all communications between DOT and the Foremost Group since the start of the Trump administration and other related documentation. The committee is also looking into Chao’s failure to divest from the Vulcan Materials Company after becoming secretary.
The letter cites reporting by POLITICO and The New York Times, including our Tanya Snyder’s 2018 story about whether Chao’s video appearances with her father helped benefit the firm.
MT readers will recall the House Transportation Committee appeared to be halfheartedly investigating Chao earlier this year, but it looks like they’ve left the formal probe to their Oversight colleagues.
In response, DOT blasted the press coverage of Chao. “Media attacks targeting the Secretary’s family are stale and only attempt to undermine her long career of public service,” a spokesperson said, while confirming the agency had received the Oversight Committee’s request.
SCOOP: NTSB RESPONSE TO LIMO CRASH COMING SOON: The safety agency is preparing a safety recommendation on occupant protection as part of its ongoing investigation into the deadly limousine crash in Schoharie, N.Y., last October, your MT host scooped for Pros on Monday. The formal recommendation is expected to come out in the next three weeks, according to the agency.
The investigation as a whole remains delayed from a dispute last year between the agency and local authorities, who for months denied the NTSB access to the crashed limo. “The investigation would be further along had we been able to follow our standard processes for the collection of evidence and information,” an NTSB spokesperson told POLITICO. But the agency plans to issue a final probable cause report at some point.
VROOM, BUT FOR EVS: NHTSA is proposing a change to the Federal Motor Vehicle Safety Standards that would give car manufacturers the ability to install more pedestrian alert sounds in hybrid and electric vehicles. Under current laws, vehicles can have one sound for each “vehicle operating condition,” which are stationary, reverse, and three different speeds, as part of the standards setting a minimum sound level to protect pedestrians and bicyclists.
In response to a petition from trade groups representing most major automakers, the proposed regulation would allow cars to come with a “suite” of sounds for drivers to choose from. The Alliance of Automobile Manufacturers and Global Automakers told NHTSA in their petition that having more choices is important for consumer acceptance of future electric and hybrid cars. The proposal will publish today in the Federal Register.
TRUMP TELLS GM, UNION TO ‘MAKE A DEAL’: President Donald Trump weighed in on the United Auto Workers strike on Monday, as more details from the negotiations between the union and General Motors trickled out. “Here we go again with General Motors and the United Auto Workers. Get together and make a deal!” the president wrote on Twitter. Several Democratic presidential candidates jumped in as well, on the side of the striking workers. “A job is about a lot more than a paycheck. It’s about dignity and respect,” former Vice President Joe Biden tweeted. “Proud to stand with @UAW to demand fair wages and benefits for their members. America’s workers deserve better.”
GM will be OK, for a week or two: Credit rating service Moody’s said in a note published Monday that GM’s cash, credit and inventory can comfortably support it through a short strike, but the car company could feel the crunch if it goes past one to two weeks. “Beyond the initial one-to-two weeks, the financial burden of a strike will become more material and the prospects of a contract that avoids erosion of the company’s current competitive position is less likely,” Moody’s said.
CHANGES COMING TO FREIGHT RAIL RATE DISPUTES: It may be a little-known agency, but there could be some big changes afoot at the Surface Transportation Board. As your host reports for Pros, the board is proposing new rules for how it reviews freight rail rates, which have been welcomed by shippers but made the railroad industry uneasy.
The rules would include a streamlined process for smaller rate cases and a new method for letting shippers show market dominance by a railroad. Both are intended to bring the agency’s methods in line with the “realities of the current transportation world.”
The American Chemistry Council called the proposals a “positive step toward improving how the STB addresses freight rail problems,” but the Association of American Railroads warned against possible unintended consequences of “government intervention and rate regulation.”
737 MAX REVIEW BOARD SET TO FAULT FAA: A soon-to-be-published report from a panel of international aviation regulators is expected criticize the FAA’s initial approval of the Boeing 737 MAX, according to The Wall Street Journal. From the dynamic duo of Andy Pasztor and Andrew Tangel: “The task force is poised to call out the Federal Aviation Administration for what it describes as a lack of clarity and transparency in the way the FAA delegated authority to the plane maker to assess the safety of certain flight-control features. The upshot, according to some of these people, is that essential design changes didn’t receive adequate FAA attention.”
The Joint Authorities Technical Review, as it’s called, was created by the FAA and is chaired by a former NTSB head.
Meanwhile, FAA chief Steve Dickson told CNBC he will travel to Seattle this week to test Boeing’s software changes for the grounded MAX in a simulator. “I can I guarantee you that the airplane will not be flying again until I’m satisfied that it’s the safest thing out there,” he said.
ADS-B UPDATE: The FAA issued an update on compliance with the ADS-B mandate, which our Brianna Gurciullo wrote up for Pros. The topline: The number of airplanes complying with the ADS-B Out mandate has risen almost 69 percent in the last year or so, but general aviation is lagging behind commercial operators. Planes flying in most controlled airspace in the U.S. must have the surveillance tech installed by the start of 2020.
A GOOD YEAR FOR AIRPORTS: Airports Council International released its 2018 North American Airport Traffic Report on Monday. Key takeaways: Airports in North America saw a 6.4 percent increase in international passenger traffic and a 4.8 percent increase in domestic passenger traffic last year, and Hartsfield-Jackson in Atlanta remains the world’s busiest airport with more than 107 million passengers in 2018.
Jim Ray, a senior adviser to Chao for infrastructure and former Federal Highway Administration chief, has landed a new job in the private sector. He joined infrastructure solutions company HNTB as its corporate president and executive vice president, the firm announced Monday. Ray left DOT (his second stint at the agency) in February.
— “Warner asks CBP about contractor cybersecurity following breach.” POLITICO Pro.
— “Pigeon poops on lawmaker discussing pigeon poop problem.” Associated Press.
— “NJ Transit boss pays $19.42 in property taxes on his 5-acre farm.” NJ.com.
— “Airbus warns Trump he’s shooting himself in the foot with a tariff war.” POLITICO Pro.
— “Musk hired detective to probe man who sued over Tweet.” Bloomberg.
— “California bullet train’s mishandling of land deals adds to mounting costs and delays.” Los Angeles Times.
DOT appropriations run out in 14 days. The FAA reauthorization expires in 1,476 days. Highway and transit policy is up for renewal in 381 days.
