Subject: POLITICO's Morning Transportation, presented by the Air Line Pilots Association, International: TSA warns travelers on wait times and eyes additional cash — THUD finally gets liftoff — Thune talks Takata, kind of
From: Morning Transportation <[email-masked]>
To: <[email-masked]>
Date: Fri, 13 May 2016 08:11:01 -0600

By Martine Powers and Heather Caygle | 05/13/2016 10:08 AM EDT

With help from Jennifer Scholtes, Isaac Arnsdorf, Lauren Gardner, Tim Starks, and Sara Stefanini

WHAT YOU GOT, BABY I WANT IT: Despite an agreement to redirect $34 million in TSA funding to hire 768 new screening officers and cover the costs of staff overtime, lawmakers are still antsy that the measure won't be enough to combat the forecast out-of-this-world airport security lines this summer. Rep. John Carter, the Texas Republican who heads Appropriations' Homeland Security Subcommittee, told our Jennifer Scholtes on Thursday that agency administrators are already testing the waters in anticipation of making a more significant ask from appropriators.

How much is enough? Jen gives a lay of the land: "While the president's fiscal 2017 budget request calls for about a 2 percent increase in TSA funding, the proposed bump doesn't measure up to the 7 percent increase in traveler volume expected at U.S. airports in the months ahead. And that discrepancy creates a conundrum for lawmakers in charge of funding the agency for the next fiscal year, Carter said."

... What you need, you know they got it: Carter seemed open to the idea of reconsidering the agency's funding needs - to a limit. "They may have other needs. If they are real needs - and I emphasize the word 'needs,' not wants - then I'll work with them on that," Carter said. "We've got to look into what they're asking for, ... look at what we think is right. ... It may not be sufficient, but we've got X amount of dollars we've got to deal with."

THE SOLUTION TO ALL THEIR PROBLEMS? Loose change. According to the New York Times, TSA "said it collected more than $760,000 in unclaimed cash - mostly loose coins - from travelers who had forgotten the money after passing through airport security in the 2015 fiscal year. ... Money from other countries ... made up more than $9,200, which was converted to American currency ... What will the agency do with the money? In 2005, Congress gave the T.S.A. the authority to use unclaimed money on security operations."

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.

The forecast for today in Washington: gray and rainy. Shocking! Let's hope for better weather next week. Send tips: [email-masked] or@martinepowers.

"The white lines/The white lines the side of the road/They go on/They go on right to your home." (h/t Marc Scribner of the Competitive Enterprise Institute)

NO LOVE FROM MICA: Airport security was also the big topic of conversation at a Thursday House Oversight Committee hearing with TSA Administrator Peter Neffenger and DHS Inspector General John Roth. Lawmakers expressed displeasure with TSA across-the-board, but John Mica (R-Fla.) dug in even deeper, recounting how several of his associates had missed a flight because of backup at security. "You can't get ahold of a damned person at TSA, even as a member of Congress," Mica declared. "I am so disgusted with this. You cannot recruit, you cannot train, you cannot retain, and you cannot administer. It's just a huge, failing government program, and it will fail."

In the meantime, Homeland Security Secretary Jeh Johnson and Neffenger are spreading the word on security line woes: They're headed to Ronald Reagan Washington National Airport today for a big press conference to warn summer travelers about wait times.

The American Association of Airport Executives also plans to weigh in on the issue today, and MT got a first look at what the advocacy organization is planning to say: "Many airports and their partners have already stepped up in significant ways to help TSA address increased wait times," AAAE President and CEO Todd Hauptli says in his statement, which also thanks Congress for the $34 million allocation. "But it is clear that more needs to be done quickly to address what is becoming a serious headache and worry for travelers."

DHS IG TARGETS TSA IT LAPSES - A report Thursday from DHS's inspector general identified persistent problems with TSA's screening equipment at airports, including unpatched software and inadequate vulnerability reporting. The problems stem from TSA's improper implementation of the Security Technology Integrated Program, a data management system that connects airport transportation security equipment to servers, allowing remote passenger and baggage screening and maintenance of facility equipment, including software changes in response to emerging threats. IT security concerns prompted TSA in August to disconnect STIP equipment but TSA has recently proposed changes that "should resolve many
 of the STIP IT security deficiencies identified in this and prior OIG reports," DHS Inspector General John Roth said. "We will continue to monitor the effectiveness of TSA's proposed improvements."

NAI BACKERS, FOES RAMP UP: Opponents of Norwegian Air International's bid to operate flights from the U.S. to Europe were out in full force on Thursday with hundreds of pilots, flight attendants and other aviation workers huddling across the street from the White House to protest. "Did you hear that, White House? We move 360 million voters every year and we're here to tell you that we matter," yelled flight attendant union leader Sara Nelson when it was her turn at the podium before leading the crowd in a chant. "Stand up, fight back," the group of 100-plus repeated in unison.

But - and there's always a but - while NAI opponents protested, backers of the overseas carrier's bid were also making their voices heard. NAI supporters hosted a conference call Thursday morning to refute claims that NAI would be bad for aviation labor and warned against retaliation from Europe if DOT were to deny Norwegian's permit. Pro-NAI groups like U.S. Travel say opposition to the permit request is just an attempt by domestic legacy carriers to stamp out any potential competition in the transatlantic market. Expect to hear more in the coming weeks - from Capitol Hill and beyond - since DOT extended the comment period, which now won't wrap up until after May 23.

From the Business Travel Coalition: "Unfortunately, some special interests, having gained the benefits of Open Skies for themselves, now seek to pull up the ladder and block competition by competitor airlines from other countries," the group wrote. "The need for independent, innovative airlines such as NAI has never been more compelling. ... NAI will inject competition and lower fares into existing and new markets."

MOVING RIGHT ALONG: Energy and water appropriations finally got approval on Thursday, and Senate Majority Leader Mitch McConnell teed up the THUD appropriations bill, lamenting the hiccups that occurred during the energy and water process, but forecasting a swift process for the coming bills. "We're looking forward to Sen. [Susan] Collins picking up the baton here and continuing the great progress we're making," he said.

THUNE TALKS TAKATA, KIND OF: Sen. John Thune was a busy guy this week - what with dodging questions from TMZ about being a potential Trump VP pick and all - but we managed to catch up with him to talk a little transpo too. With last week's NHTSA announcement that it was more than doubling the Takata airbag recall, potentially affecting a quarter of U.S. cars on the road, we were wondering if Capitol Hill planned to take action on the issue anytime soon. Not likely, it seems. "The news, the information coming out of there is not good," Thune told our Heather Caygle. But is there anything Congress can or would do? "I think it remains to be seen. I don't think we have a plan at the moment but
 we're following it closely," he said before ducking into an elevator.

** A message from the Air Line Pilots Association, International: By proposing to grant Norwegian Air International (NAI) a foreign carrier permit, the Obama Administration is failing to enforce our Open Skies agreement with the European Union, thereby harming tens of thousands of U.S. workers. The Department of Transportation should stand up for U.S. workers and immediately deny NAI's request. http://go.politicoemail.com/?qs=d22e2e2afa8be6e3e8069addf38acac6b4ac5b86d8e8a3aa7ca9ca098abc7faf **

JUST A REMINDER: Though there are few signs of imminent movement on the House Transportation Committee's FAA reauthorization bill, T&I ranking member Peter DeFazio isn't taking any chances. He and Rep. Rick Larsen sent yet another "dear colleague" letter to other members of the House, warning of dire repercussions if the air traffic control privatization provision were to pass. "One thing is certain: A private corporation will cut costs to remain in the black, and costly facilities serving remote areas and low-trafficked areas will be the first to go."

CLASHING ON ICAO EMISSIONS: As international aviation leaders debate in Montreal over global airplane emissions caps, European Union country representatives are also meeting to talk about a draft negotiating position for the International Civil Aviation Organization's general assembly in September. POLITICO Europe got an early look at the draft, and one point of contention is expected to be a bracketed line saying that the EU shall "ensure that this international instrument is consistent with Union law without replicating the relevant legislations." That is, that the ICAO's market-based system can't clash with the Emissions Trading System, which currently covers flights within the EU. Our
 colleagues on the other side of the pond are hearing that Germany, Finland, France, Poland, Portugal, the U.K. and maybe others will want to delete that line.

Back in Montreal, an on-the-ground source is telling Pro Europe's Sara Stefanini that Egypt came out with a proposal yesterday to outlaw any regional measures once the global system is agreed. The U.S. backed the motion and offered up draft language; others threw in their support. "So Uncle Sam's coalition of the unwilling is back with a vengeance," the source said. "The EU delegation in Montreal is fighting back, but EU bashing is a popular ICAO blood sport." But the EU still has the option of declaring that it has a reservation on the issue - and to refuse to be be bound by the proposal.

DRONE WAR: Franklin Square Group has been hired to represent the Drone Manufacturers Alliance, the new partnership of 3D Robotics, SZ DJI Technology, Parrot SA and GoPro, to lobby for micro-drones. The filing names co-founder Matt Tanielian (former counsel to former Sen. Robert Torricelli), co-founder Josh Ackil (former special assistant to President Bill Clinton and staff director of the Office of Legislative Affairs), Kara Calvert Campbell (former adviser to Sen. Mike Enzi), Brian Peters (former press secretary for former Rep. Jay Inslee), and Ryan Triplette (former chief intellectual property counsel to the Senate Judiciary Committee).

BIG NEWS IN JAPAN: Nissan's $2.2 billion purchase of a 34 percent stake is a big deal for the Japanese automotive industry (hence the Jalopnik headline, "Why Nissan Taking Control Of Mitsubishi Is A Huge Deal In Asia) but the strategic alliance could also have implications for Detroit and Silicon Valley. The Wall Street Journal's take: "The deal is the latest example of car makers working together in an increasingly competitive industry. By teaming up, rivals hope to slash steep development costs and jointly invest in the new technology necessary to meet tightening emission standards and fend off challenges from Silicon Valley upstarts."

THE AUTOBAHN (SPEED READ):

- "Apple Invests $1 Billion in Didi, Uber's Rival in China." The Wall Street Journal.

- "How Austin Beat Uber ... Who is in the driver's seat (pun intended) when it comes to the public weal?" The New York Times.

- Aviation Week's Parth Vaishnav: ICAO's Emissions Plan Has Loopholes Big Enough For An A380

- Watch out, delivery drones! "Wal-Mart Sharpens Amazon Attack With 2-Day Delivery Service." The New York Times.

- VIDEO: Ford equips motorcycles with sensors to track medical services in The Gambia.

- Container lines work to ease US exporters' SOLAS liability fear. The Journal of Commerce.

- "America! The Cyclist Is Not Your Enemy." The Wall Street Journal.

THE COUNTDOWN: DOT appropriations run out in 141 days. The FAA reauthorization expires in 63 days. The 2016 presidential election is in 178 days. Highway and transit policy is up for renewal in 1,603 days.

** A message from the Air Line Pilots Association, International: The Department of Transportation's (DOT) order proposing to approve Norwegian Air International's (NAI) request ignores both the terms of our the Open Skies agreement and the will of Congress. NAI's operation as a "flag-of-convenience" carrier in Ireland would allow the airline to skirt Norway's employment laws, give NAI an unfair economic edge, and put tens of thousands of U.S. aviation jobs at risk. 

DOT's decision is at odds with the letter, spirit, and intent of the U.S.-EU Air Transport Agreement and is opposed by U.S. and EU labor unions, airlines and others. More than 200 members of Congress from both sides of the aisle have urged Secretary Foxx to enforce the U.S.-EU agreement and deny the NAI application.

The Obama Administration needs to stand up for fair competition and U.S. jobs and deny NAI a foreign carrier permit. Learn more: http://go.politicoemail.com/?qs=d22e2e2afa8be6e3e8069addf38acac6b4ac5b86d8e8a3aa7ca9ca098abc7faf **

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