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Copyright 2002 Federal News Service, Inc.  
Federal News Service

July 23, 2002 Tuesday

LENGTH: 25772 words

HEADLINE: HEARING OF THE AVIATION SUBCOMMITTEE OF THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE
 
SUBJECT: ANTI-TERRORISM AVIATION SECURITY PROGRAMS
 
CHAIRED BY: REPRESENTATIVE JOHN MICA (R-FL)
 
LOCATION: 2167 RAYBURN HOUSE OFFICE BUILDING, WASHINGTON, D.C.

WITNESSES: SECRETARY OF TRANSPORTATION NORM MINETA; ALEXIS STEFANI, ASSISTANT INSPECTOR GENERAL FOR AUDITING, DEPARTMENT OF TRANSPORTATION; AND JAMES LOY, DEPUTY UNDERSECRETARY, TRANSPORTATION SECURITY ADMINISTRATION
 


BODY:
REP. MICA: (Sounds gavel.) Good morning. I'd like to call this hearing of the House Aviation Subcommittee to order. Today our hearing will focus on the important issue of aviation security. And the order of business today will be opening statements by members. Now, I've asked -- and we've tried to reach an agreement with the minority. I think we have an agreement to try to limit our opening statements to 10 minutes a side. And I will try to share my time with my colleagues, and Mr. Lipinski, our ranking member, will share his time with his colleagues. Then -- in that fashion, we can hear from witnesses, which is so important today. And then members can use their time to make statement or questions so we can get through the first part of our hearing. The first part will be open to the public, and then for security considerations, we will break, probably about lunch time. They'll need an hour to sweep the hearing room, and then we will have a closed portion to deal with some of the classified or security issues that are so important to our work.

So that is the order of the day. And I will start with my opening statement and then yield to our ranking member to distribute his time, and then finish time on our side.

With that, I have some opening comments. Members of the subcommittee, my colleagues, we know that today's hearing comes at a very critical juncture in our national effort to reform America's system of transportation and aviation security. With the departure just in the last few days of Transportation Security Chief John Magaw, this hearing is even more significant than when it was originally called. While Mr. Magaw was given a monumental, if not impossible, assignment, we all know that in fact some of the critical elements of developing a seamless transportation security system have not been coming together.

I know that both Secretary Mineta and Deputy Secretary Michael Jackson have done their absolute very best to help launch this vital new agency, and also to comply with the security mandates that were imposed by law last November.

And I thank them for their tireless efforts in that regard.

While the administrator of the Transportation Security Administration will change, we must realistically reassess both the effectiveness, the cost and the factual ability to meet arbitrary future deadlines we've imposed. During our intense debate, I pleaded to have the federal government take over the passenger-screening function from the airlines and asked that we have federal standards, federal supervision, federal oversight, testing and background checks without building a federal bureaucracy.

As predicted -- unfortunately, as predicted the Transportation Security Administration has been consumed with constructing an army of more than 30,000 federal workers, and those are just screening workers. And right now, if we look at it, we have only three airports that are totally federalized and some 2,475 persons hired. While I know the Transportation Security Administration has been working feverishly towards meeting Congress's passenger-screening mandate, we must ask ourselves honestly, what happens on November 19th if this mandated bureaucracy is not put in place? And once again, I ask my members, are we building a federal bureaucracy at great costs in the name of security?

Congress is now faced with sticker shock. Appropriators have delayed, unfortunately, emergency funds to the point of endangering our own mandates. Even worse, we've learned that huge sums of supplemental dollars have been tied by -- have tied the hands of our Transportation Security Administration that's -- that is required to complete this important work.

Our second looming aviation security crisis is the requirement to screen all checked baggage by December 31st. The pending homeland security legislation that has been developed the last few days may put this requirement off for a year. At best, it may be impossible to produce even half of the EDS machines that may be required. Even for the explosive detection system machines that we are able to manufacture and produce, we haven't fully considered the challenge of installing the equipment or who's going to pay for it, or even which airports or where in the airports we'll place the SUV-sized machines.

Because we'll not meet the checked baggage screening mandate -- and again, there have been a number of factors that have delayed this installation and meeting this mandate -- does it make sense to deploy questionably effective and manually intensive trace detection equipment? We've got to ask ourself that question. Should Congress authorize and fund a second airport army of another 20,000 or more employees for hand searches with these trace detection devices? Unfortunately, the math for this massive bureaucracy is now estimated by the inspector general to add up to some 67,000 federal employees.

Congressional appropriators are balking now a multi-billion- dollar equipment post projections. Unfortunately, they're also diverting some of the funds they're appropriating, and they've placed a limit of 45,000 federal employees on the system. Even a second grade student will tell you tell you that the math on this project does not work.

So today we must address this pending aviation security crisis. Airports want answers, airlines need answers, and we owe the American traveling public answers, and we owe the taxpayers answers. We cannot allow the prospect of three- and four-hour passenger waits for security checks at the end of this year. We cannot further damage our aviation industry, and we all know that we have a number of major air carriers on the brink of bankruptcy.

We cannot again, as after the TWA-800 crash, buy loads of expensive equipment that will collect dust in a warehouse somewhere. We must take time, look at this situation and develop a common-sense, risk- based backup plan if we're to avoid chaos and wasteful expenditures.

So we have an important responsibility today to deploy the most effective aviation and transportation security system that we can devise and that is possible. We don't have any other choice.

I look forward again and welcome Admiral Loy, who will assume the position of undersecretary for Transportation for security, a very difficult task and assignment. I look forward to continuing my work with Secretary Mineta and Michael Jackson, the deputy secretary, and all members of Congress working together as we address these important challenges before us.

With those comments, I'm pleased to yield now to our ranking member, the gentleman from Illinois, Mr. Lipinski.

REP. WILLIAM LIPINSKI (D-IL): I thank the chairman.

And first of all, I want to welcome all the witnesses. And the way we're going to handle it on the Democratic side today is I'm going to yield to Mr. Oberstar whatever time he may consume, and then any other member on the Democratic side that wants to give an opening statement, we'll recognize them. But if you give an opening statement, you've got to go to the end of the line on being able to ask questions. So if you don't give an opening statement, you'll be recognized in the order you are now sitting. That means that Mr. DeFazio would be first, then Ms. Norton, Mr. Costello, right on down the line there.

Mr. Oberstar, yield to you whatever time you may consume.

REP. JAMES OBERSTAR (D-MN): I thank the gentleman. It's an unusual procedure in order to conserve time and get to the main event here.

It's good to see Secretary Mineta back in a room with which he's very familiar. We spent 20 years of our lives together. Deputy Secretary Jackson, good to have you here. Admiral Loy, it's very unusual to see you in a different, non-uniform. That blue suits you much better. I just can't imagine you in this odd combination of brown and tan. Handsome time and all, but -- we salute you for your years of service and hope that you can expedite the process of getting us to a more secure aviation sector and other transportation sectors.

This hearing, Mr. Chairman, is rather fortuitous, planned last week and one we've been trying to bring together for several weeks. But on the eve of the consideration of the Department of Homeland Security and in the aftermath of actions by the select committee crafting this Homeland Security Department, adding a provision that has no place in a Department of Homeland Security, and that is to provide, after great debate, a one-year extension of the deadline to install explosive detection systems.

The first attempt was to repeal the deadline. That was defeated. Then they came back and overturned the defeat, and then there was a compromise offered, and Mr. Frost on our side, in an attempt to save some semblance of rational public policy, offered a one-year extension that was passed. That is an outrage.

Last fall, when we debated this bill in this committee and on the floor, I said, one, I wanted to have the fee listed on tickets as the homeland security fee so that passengers would always remember what drove us to this (needed ?) fee for security. Because the public's mind will be distracted easily, and in six months, we'll begin to watch the slow unraveling of the Security Act. It happened in the aftermath of PanAm 103. And it's happening again in the aftermath of September 11.

This is outrageous, to do it in this bill. Bring it up on the floor, and let's have an open debate over whether you really want security or not. And don't tell us that it can't be done because there isn't enough money or because we can't meet the deadline; we can't produce enough equipment. Secretary Mineta has said many times, "We'll meet that deadline." Deputy Secretary Jackson has said many times, "We'll meet that deadline." I can't think of two people who've worked harder. I don't think there are any more hours in a week that you could put in, either one of you, to work conscientiously and diligently and intensively in mobilizing all the personnel that you have to meet those deadlines of this legislation.

That bill didn't pass in the dark of night by accident. It was passed with everyone's eyes wide open, with the Republican side criticizing the Senate-passed bill saying it didn't have deadlines, so they put them in their bill. And then we took it out of conference and we brought it to the floor, and it passed 410 to nine. That was no accident.

The accident was September 11. And the accidents started long before that, failure to implement fully the Security Act of 1990, and the undoing and the unraveling by delaying criminal background checks, refusing passenger -- positive passenger-bag match. All those key provisions that were laboriously thought through, carefully crafted into legislative language, an act that -- supported and then resisted by the airlines and by airports and the same crowd is now coming before the Congress and the American people saying, "We can't do it. We can't meet this deadline, so give us more time."

And let's, by the way, announce to the terrorists, "You got all the time in the world you need to break through."

And then there's the remarkable argument that I heard from -- the majority leader say: Well, there's better technology coming down the road. Well, we heard that too, in this committee room, in the 1980s, over traffic collision avoidance systems. Near midairs were rising, doubling, in fact, in beginning of 1985 -- of 1985, 1986. I chaired the Investigations- Oversight Subcommittee at the time. We needed new technology. There was technology available -- hadn't been used by the airlines, resisted -- "Too costly. We don't need it. There are other ways to deal with this problem." Said, "We're going to have a crash."

The secretary was then chairman of the Aviation Subcommittee. We conferred many times about this matter. If we don't act now, we both agreed, there's going to be a fatality. And the industry kept saying and the FAA kept saying, "Oh, wait. Better technology's just around the pike, around the corner" -- traffic collision avoidance system II or III, where you can have information to move both laterally and vertically. And they resisted and waited. And then came Cerritos, California, and people died.

And then this Congress enacted legislation to require installation on all commercial aircraft traffic collision avoidance systems. It was a bill authored by your colleague from California at the time, Ron Packard, who was on this committee and who's now retired. We moved his bill. We got it enacted into law, so that we wouldn't let the perfect be the enemy of the good.

Now tell me with a straight face that there is new technology that's going to do explosive-detection system screening faster, more reliably, and that you can deploy it in the -- by the end of this year. Baloney! It doesn't exist. It hasn't been certified. And if you can't get this equipment, EDS and L-3, deployed, then how are you going to get the other stuff deployed? In a year? I've been here long enough to see this, with fatal results.

We resolved that we'd make aviation security tougher than ever, inescapable, no room for bureaucratic delays. And now the Congress is doing the job that the bureaucracy usually does: providing the delay.

And then a final outrage is that the Pan Am 103 commission saw the problem. The problem is intelligence, gathering intelligence overseas -- gathering, evaluating, disseminating it; sharing it; entering into the mind of the terrorist. Quote: "The commission recommends greater emphasis within the intelligence community on developing a specific unit whose principal function will be long-term strategic thinking and planning on terrorism. The objective is to be better able to anticipate future terrorist strategies and tactics, rather than simply react to incidents as they occur."

That unit was never established, and because we didn't have that, we didn't have the information on where these terrorists are, what their plans are, how they're acting, and how we can counteract.

I find little solace in the Department of Homeland Security, especially the way it's being contrived, and particularly with this outrageous attempt to undo the law that we just enacted last fall. I think that we should hear from the secretary and the deputy secretary and the new undersecretary how they plan to meet that deadline.

We provided ample alternative in the law in the event that you can't deploy EDS in all airports. Use that authority. Get with the game. Don't buy into this delay that will simply result in more delay in the future. Why do think this Congress stays in session until midnight, 2:00 a.m., 3:00 a.m.? Because humans operate against a deadline. There is a deadline for a purpose -- so that pressure will stay on the living so that we can avoid having the dead.

Thank you, Mr. Chairman.

REP. MICA: I thank the gentleman for his comments.

Mr. Duncan.

REP. JOHN DUNCAN (R-TN): Thank you, Mr. Chairman, and I'll be very brief. Let me thank you for calling this very important hearing, and thank the witnesses for being here.

I want to say, first of all, that Secretary Mineta was really an outstanding chairman of this subcommittee and the full committee, always fair to those of us at that time in the minority side. I've heard no complaints whatsoever, in fact, nothing but good things about his work as secretary as Transportation. I've heard good things about Admiral Loy. I know it was a difficult thing to take the actions in regard to Secretary Magaw. I can tell you, though, I did not hear those same good things about him. I heard several comments from other members about the $418,000 to decorate the offices. My friend, Chairman Rogers, said that Secretary Magaw had hired 140 of his old cronies from the Secret Service, most of them at salaries of $150,000 a year, plus full pensions. I don't know how accurate those figures are. And I've heard many members comment about going from 28,000, roughly, screeners to what Chairman Mica mentioned, 67,000 employees at the TSA. I know I heard one -- I think the first request, 72,000. And I go out to eat most nights with Chairman Rogers and Chairman Callahan. Chairman Callahan was fusing the other day about counting 26 screeners at the Mobile Airport. And I've heard similar comments from many, many members.

Now, I can tell you, one of my big disappointments in the homeland security legislation is the transfer of the Transportation Security Administration from the Department of Transportation, because I think that it should stay with Secretary Mineta, with his expertise and experience in transportation; I think it should stay there.

But I do want to hear at this hearing -- as I say, I've not just heard from Chairman Rogers and Chairman Callahan, but I've heard many members talk about building up this gigantic bureaucracy at the TSA. And I've heard it from screeners themselves, that there's going to be screeners checking -- supervisors supervising supervisors who are supervising supervisors. And we need an efficient TSA.

We don't need some overstaffed, gigantic bureaucracy with far too many employees. If we do things like that, we're giving -- if we go overboard, we're giving terrorists victories that they don't deserve.

With that, I'll yield back the balance of my time.

REP. MICA: Thank you.

We do have time -- we have a vote on. We have about three minutes left on this side, just to be fair.

Mr. Lipinski, did you want to yield to the --

MR. LIPINSKI: I'll be happy to yield to any member on this side that wants to make an opening statement, as long as they remember they go to the end of the line as far as questioning.

Mr. Mineta, you want to make an opening statement?

Mr. : Menendez.

MR. LIPINSKI: Menendez. Excuse me. (Soft laughter.)

REP. DUNCAN: Keep him at bay.

REP. ROBERT MENENDEZ (D-NJ): I'd rather be Mr. Menendez today than Mr. Mineta, but in any event -- (laughter) --

REP. MICA: Eight minutes. Eight minutes.

REP. MENENDEZ: Mr. Chairman, last week, as one of the members of the Select Committee on Homeland Security, we had a vote in our committee. And to a large degree, I listened to what the secretary said when he appeared before the Select Committee and answered my questions in addition to his testimony, which said clearly and unequivocally that TSA will meet all deadlines, period. That was the secretary's words.

I look at the statement that the secretary will be delivering, and I get a sense that there's now some equivocation. And at the time that that statement was made, it wasn't "if I get enough money in the supplemental, "or if" this, "or if" that. It was simply period -- "We will meet all deadlines."

Mr. Chairman, I think we struck that provision of the chairman's mark in the homeland security bill, because that had no limitations whatsoever -- no limitations on time, no limitations whatsoever -- open-ended: "Tell terrorists that" -- you know -- "when we get around to it, we'll do it." And what we did is replace the bipartisan amendment of this committee -- I mean, this committee in its full pass, which basically said, "We'll transfer TSA when and if a series of things happen."

Now let me just simply say that amendment passed with two Republican votes joining my other three Democratic colleagues. Then it was switched. Now we have an extension -- an extension that I don't hear anyone officially from this administration calling for and quite saying the opposite.

So I look forward to today's testimony, because God forbid that we grant extensions and there is a bombing on a plane. I want to see who visits those families and says to them, "I'm sorry because we delayed. I'm sorry because we were in search of some new technology that was going to be better, quicker, faster, cheaper." I don't want to have to be that person, and I do not intend to be supportive of any extensions unless you can show us why and you can prove to us that you need it and that you tell us a time period that is specific in that regard. And I hope we will go to the floor as a committee, as we did here and ensure the American people who said to me when I was leaving yesterday in the airport and saw the proceedings of the Homeland Select Committee -- I want my baggage checked now."

That's the challenge before us. That's the obligation that we have, and not to pander to some special interest in this process with an open-ended possibility that just makes absolutely no sense.

Thank you, Mr. Chairman.

REP. MICA: I thank the gentleman.

We now have approximately five minutes. So we will stand in recess for 15 minutes. I believe there's a single vote. We'll return and we'll turn directly to the secretary and our other witnesses.

We stand in recess.

(Recess.)

REP. MICA: I'd like to call the Aviation Subcommittee back to order. We need to ahead and proceed, if we could, because we do have a full agenda, both in this open meeting and then in the closed hearing to follow.

We have equally divided the opening time, and all members can use the balance of their time for questions or statements. And I'd like to proceed. I think it's very important that we hear Secretary Mineta, Undersecretary Jackson and Admiral Loy in these proceedings.

Mr. Miller, can you make certain those folks are seated back where I put them? (Pause.) That's by order of the chairman, Mr. Miller. Just sit them down there. Thank you. Mr. Mineta, you're very important, but when I have constituents, they get priority.

My colleagues, I'm pleased to introduce -- I'm pleased to introduce the secretary of Transportation, the Honorable Norman Mineta. He is accompanied, as he should be, by someone who's worked very hard, who we owe a deep debt of gratitude for his efforts non- stop through this attempt to secure both transportation and aviation security, Michael Jackson, the deputy secretary of Transportation. And we also have now acting undersecretary of transportation security, Admiral James Loy.

So I would like to welcome each of you. We're anxious to hear from you. And let me recognize Secretary Mineta first.

SEC. MINETA: Good morning, Mr. Chairman, Mr. Lipinski and members of the subcommittee.

With me today, as you've indicated, is -- are Deputy Secretary Michael Jackson, Acting Undersecretary of Transportation for Security Admiral Loy, and our assistant inspector general, Alexis Stefani.

Mr. Chairman, it's good to be home, even under these circumstances.

Today, Jim Loy makes his first appearance before Congress as the acting head of the Transportation Security Administration, TSA. And I know that many of you have had the pleasure of working with Jim in his previous position as commandant of the Coast Guard. He is an outstanding manager with impeccable credentials in security, intelligence, law enforcement and customer service, and he has deep operational skills and leadership focus. Now, this is his second day on the job as acting undersecretary, so I would ask that you welcome him to this new, large task.

Now, this testimony is an opportunity to provide a status report on our work to build the TSA and to meet the vital objectives that Congress set out for this new agency just over eight months ago. TSA's every step has appropriately been the focus of intense scrutiny. There is a great deal of handwringing going on in various quarters about the difficulty of federalizing security at the nation's commercial airports. Some are urging Congress to revise its mandated deadlines, which were spelled out in detail last fall in the TSA legislation. Others seek earmarks or payments of non-federal security costs that distract from TSA's core mission.

The Department of Transportation willingly took on the responsibility to implement this law and its ambitious timetable. I recruited a superb team that has literally met every single one of the many tough congressional deadlines to this point, tasks that in normal times would have taken years of preparation. We have made tremendous progress, and there is much more to accomplish. We shouldered this task with enthusiasm for an important reason: we are at war against a determined, well-trained terrorist who seek to attack and seriously damage our nation and our people. And without doubt, this threat has not abated. Just the opposite. The threat is real. The war is real. And so, the questions we meet here today in order to discuss are profoundly important.

President Bush has rightly urged the American people to return to life as normal. He has encouraged us to vacation with our loved ones, to conduct business as usual, not to be cowed by the evil one.

But make no mistake. The TSA employees we are recruiting and training nationwide are front-line troops in the war against terrorism. Unlike the military troops that our nation sent to meet this challenge abroad, at home we began TSA's deployment with a blank slate and a clear command: "Get the job done! And do it this year. No excuses." And again, we accepted that mandate willingly because I have read the intelligence reports, and I know that the threat is real.

Today, I was expecting to discuss TSA's challenges, to seek your counsel, to report to you on what's working and to tell you what needs improving.

Most importantly, I was prepared to renew our pledge to meet the ambitious deadlines established by Congress and explain exactly how we were going to get there.

But the extraordinary delay in approving emergency funding and new restrictions imposed upon the TSA have dramatically undermined our ability to meet our goals. And let me explain why.

Four months ago, President Bush asked Congress to approve a $4.4 billion emergency supplemental to stand up this new agency. That's a lot of money, but that should not be surprising because the mandates set out in the Aviation and Transportation Security Act are ambitious. And we set out to work in good faith, launching this massive effort required to meet the statutory plan. And we waited for the funding through May, through June, and now July. In the meantime, the Transportation Security Administration has had to borrow money; renegotiated payment schedules with our vendors; defer purchase of explosive detection equipment; and set back the pilot testing of various security measures. Now TSA is literally days from running out of money to pay for the ongoing work of screeners nationally.

We expected active congressional oversight, but we also needed your support to fund TSA and to do it in a timely manner. The administration's emergency supplemental request was the amount that we needed to do our job -- no more, no less. Last Friday, the appropriations conference committee voted to cut $1 billion from the $4.4 billion that was requested by President Bush, and to impose new restrictions on our ability to get the job done. Here are five facts from the conference report.

First, it eliminated $550 million off the top of our $5.5 billion request. Secondly, it set aside $480 million in a so-called "contingency fund" that may not be available to TSA. Thirdly, it imposes $445 million in numerous earmarks not requested or supported by the administration. And fourthly, it limits the total number of full-time TSA employees to 45,000, at least 20,000 employees short of what TSA needs to meet its statutory mission. And then, finally, report language that severely restricts our discretionary authority to manage TSA expenses in a cost-effective manner.

In short, TSA's budget was cut by at least $1 billion and possibly up to $1.5 billion. And that is a whopping 34-percent cut of the president's request.

Now here's the dilemma that Congress has created: You have not yet changed TSA's mission, yet the budget to do the job is apparently on the way to being radically diminished while new restrictions and mandates are being imposed. What can be done? The amount of money Congress is about the approve simply will not support the mandates and the timetables for aviation security that Congress set last fall for TSA. Less money with no flexibility means fewer TSA employees, less equipment, longer lines, delays in reducing the hassle factor at airports and/or diminished security at our nation's airports. Frankly, these conflicting signals set by Congress have forced us to regroup and revise the TSA business plan. That will likely take several more weeks. It will involve complex negotiations and a review of literally thousands of TSA commitment and plans.

We need the supplemental now to continue fighting the war on terrorism and protecting the homeland. The administration will propose and support a significant budget amendment for fiscal year 2003 for TSA. Even if approved, however, we are confronted with a load that the TSA cannot lift. Such funds will not arrive prior to our having to make immediate changes to our existing deployment schedule. There are a number of voices in Congress calling for more resources or less, maintaining current law or seeking flexibility in the law. And what is needed most at TSA today, however, is clarity. Tell us the mission. Give us the resources to do that mission in a timely fashion, and we will accomplish it.

I want to reiterate that we are not asking for a free pass from a rigorous oversight or criticism. That is expected. Nor am I telling you that everything is prefect. Everything is not tidy, but it is unreasonable to expect from a massive standup the same type of certainty and stability found in long-established programs.

I have perhaps been too blunt today, but the circumstances demand no less. I know how difficult your job is. I've been there.

And I understand the competing pressures that each of you face in making public policy. And so I come before you today as a former chairman of this subcommittee and as a former chairman of your full committee who loves this great institution, the Congress of the United States. I am a lifelong Democrat proudly serving an outstanding Republican president.

And so I close with a simple message: There are literally thousands of committed TSA employees working furiously to improve transportation security. Please support them and their mission. Restore the money and the discretion to complete our security work effectively, and give us the tools and the flexibility that we need to build this young organization. We will then be able to hand off to the new Homeland Security Department, led by a colleague who, like me, will continue to work with you to strengthen the Transportation Security Administration.

Mr. Chairman, I ask unanimous consent that my written testimony be made a part of the record, and I will be pleased to answer your questions.

REP. MICA: Without objection, your entire statement will be made part of the record.

Do we have additional opening statements from Admiral Loy? Mr. Jackson? (None given.)

I have also asked the Inspector General's Office to monitor some of the progress of our TSA mandates and report to us. We have with us Alexis Stefani. Ken Mead is unable to be with us, but she's been following this issue for the IG, and I'll recognize the inspector general representative from the Department of Transportation.

MS. STEFANI: Mr. Chairman, members of the subcommittee, I appreciate the opportunity to testify today on the Transportation Security Administration's progress in implementing the provision of the Aviation and Transportation Security Act. We all recognize that ensuring that our transportation systems are secure is a tremendous task, one that has never been undertaken before on a scale of this magnitude.

Since we last testified before this subcommittee in January, TSA has made progress in implementing the act's requirements. For example, TSA has in place three major contracts for hiring and training all passenger screeners and for deploying and installing the explosive-detection equipment in over 400 airports.

Mr. Chairman, today the deadline to have a federalized screener workforce in place is less than four months away, and the deadline to begin screening all checked bags is just over five months away. While there has been much debate as to whether these dates are achievable, we can attest that TSA and the department are working diligently to meet the deadlines and could not be working any harder.

As we get closer to the deadlines with only a fraction of the airports completed, the task becomes more formidable.

In our opinion, in the next 30 to 45 days, it should be clearer as to what exactly must be done, airport by airport. Because airport assessments for the deployment of the explosive-detection equipment are scheduled to be completed in over 260 airports by the end of August and because TSA will have gained more experience in hiring passenger screeners, it will be in a much better position in a month to judge what is or what is not feasible to accomplish at each airport by the deadline.

Now, I would like to provide specific information on TSA's progress in meeting the two key deadlines; first, hiring and training passenger screeners. Today, TSA is operating three airports with a federalized work force for passenger screeners and expects to add two more this week. Currently, TSA's contractor is conducting assessments at over 200 airports, where they're looking to see what the checkpoints have to be configured to match the passenger load at the airports, and they also are developing a computerized model which will be able in the next couple of weeks to tell TSA exactly how many passenger screeners will be needed at each airport.

TSA estimates that it will need in total up to 33,000 screeners and supervisors to screen passengers. Over the last month, the pace of hiring has increased and it's continuing to accelerate, but the heavy lifting is still to be done. TSA has almost doubled the number of screeners hired from over 1,200 to now we're at 2,475, and with another 4,000 individuals who have accepted offers for employment. As of last week, they were accepting applications at 250 airports, but, however, with less than four months left before the deadline, TSA needs to hire and train more than 7,600 passenger screeners each month to achieve its goal.

While the TSA has made some adjustments in the hiring process to respond to past results, one area of concern needs to be highlighted. TSA is having difficulty in hiring enough screeners in major metropolitan airports, for example, New York. While TSA estimates it will need about 2,300 for the three large airports in the New York City area, job offers have been accepted for only about 15 percent of the targeted amount. Delays in hiring in these large cities have largely been due to no-shows. About 25 to 30 percent of those who apply don't show up for further assessment, and about 50 to 60 percent of those who show up for assessment fail the aptitude test. In our opinion, TSA needs to move quickly at all the major metropolitan areas to get its process going in order to try to make the hiring goals it has.

Moving on to the checked-bag challenge, the challenge facing TSA in meeting the December 31st deadline to screen 100 percent of checked bags is unprecedented. An effort of this magnitude has never been done in any single country or group of countries. In fact, the amount of explosive-detection equipment to screen all checked bags, approximately (7,000 ?) units is estimated to be at least three times the amount of equipment deployed at airports worldwide. And the success of TSA in this area means that it must effectively manage three major program activities running on concurrent tracks.

First, it must place the remaining equipment orders and ensure that the manufacturers deliver the equipment on time. It has to order an additional 75 EDS machines and over 4,500 trace machines to complete the deployment, and funds for these orders are included in its pending supplemental. Because of manufacturer long-lead times, up to about 60 days in some cases, the orders must be placed by the end of September if the deadline is to be met.

Second, TSA must keep its deployment on schedule. While TSA has finalized its deployment schedule and hired a contractor to carry it out, what our -- in our opinion, the key is the assessment phase. By the end of August, about 260 airports will have had their assessments completed

The remaining phases that must be done, including construction and installation, stretch out over the remainder of the year, with our 43 largest airports -- the Dallas-Forth Worth, San Francisco's and Atlanta's -- scheduled to be completed in the last week of December. The contractor needs to stick to its milestones, because any creep in any one phase can affect the ability to ultimately meet the deadline.

And finally, they also must hire, train and deploy 21,600 screeners for checked bags. This is in addition to the 33,000 for passenger screeners. While it's too early to tell whether they'll have the same kind of hiring problem with the checked bag screeners, we think the lessons they've learned to date should be important in meeting the deadlines.

Finally, I'd like to discuss usage of the equipment that is already in place. Seventy-seven percent of the machines in use today -- the big explosive-detection equipments -- are on average screening 750 bags per day or less. These machines should be screening 1,250 bags per day. TSA needs to direct that the current rate of machine usage pick up substantially. Otherwise, we will miss out on the opportunity to practice screening a higher percentage of checked bags in order to better understand the logistics and physical constraints of these machines installed in the lobby.

Mr. Chairman, our statement also includes information on controlling cost for -- in the TSA. And the -- an overriding goal of TSA must be to provide tight security in a manner that avoids waste and ensures cost-effective taxpayer dollars.

I -- at this point in time, I would be glad to answer any questions on that, and this concludes my statement.

REP. MICA: Thank you for your statement and also for your independent analysis of the situation.

We'll now turn to a first round of questions, and I'll begin. Secretary Mineta or Deputy Secretary Jackson, I said in my opening statement the math on this does not work.

Let me go back to the inspector general first. Ms. Stefani, you had two reports -- I think that I read one earlier that said 72,000 people would be required, and then I think you backed up and said 67,000 people would be required to complete the task. Is the 67(,000) a standing figure of your assessment?

MS. STEFANI: That is correct.

REP. MICA: And the secretary testified we're going to be 20,000 personnel short. Is that correct, Secretary Mineta?

SEC. MINETA: That's correct. At the -- with the cap of the 45(,000) in the supplemental appropriations.

REP. MICA: With a 45,000 cap --

SEC. MINETA: There's a 45,000 cap --

REP. MICA: -- the math just does not work on this.

Now, Undersecretary Jackson, have you ordered the -- now we don't have a -- I know you've ordered the EDS equipment -- explosive- detection, large checked-baggage screening equipment. And I think you've ordered 1,100 units.

Is that correct? Or --

MR. JACKSON: We've ordered 800 to date, sir, and --

REP. MICA: Okay, I'm sorry. Eight --

MR. JACKSON: -- we have an option for additional 300, subject to -- for the --

REP. MICA: And have an option for additional 300.

MR. JACKSON: Yes, sir.

REP. MICA: Okay. And the balance you determined of checked- baggage screening would be conducted by trace-detection equipment. And that requires a large number of personnel, correct?

MR. JACKSON: Yes, sir.

REP. MICA: So have you placed the order for the trace-detection equipment? And if so, how much?

MR. JACKSON: We've placed order for a significant portion of it, and the remainder was contingent upon having the funds available.

REP. MICA: The inspector-general estimated we would need 4,500 trace-detection devices to complete the job. Is that accurate?

MR. JACKSON: Roughly, I think. Yes, sir.

REP. MICA: Okay. So we -- what we have is a situation where you wouldn't -- you might have the equipment, but you may not have the personnel to man the equipment. Is that correct?

SEC. MINETA: Mr. Chairman, it depends, because to the extent that if we can get the money for 1,100 machines, then that depresses the need for the number of ETD machines. We estimate that to be roughly around 4,600. But if we only had the money for 800 EDS machines, that increases the ETD up to something like 6,700.

Now the reason we can do that is because the EDS machines are -- let's say roughly 800,000 a piece. ETDs are available at 35 (thousand) to 40,000. So we can sit there, depend upon the money available, then adjust that. But in adjusting it, because of the throughput, as the assistant inspector-general indicated -- because of the throughput, based on that balance, it'll affect it. And so what we were trying to do was to get a goal of 10 minutes going through the security line. And in terms of the number of people, the magnetometers, the whole combination of a systems approach would not hold.

REP. MICA: Well, I'm told with this action just in the last few days by the appropriators -- and I think you testified today -- over a billion dollars has been diverted from what you requested and what we mandated as authorizers, as far as your responsibility. I've been told by staff that, in fact, you may -- the financial situation is so bad you may be facing default in some of the contracts you've already undertaken. Can you address that, Mr. Jackson?

MR. JACKSON: Yes, sir, Mr. Chairman. I don't think we're going to have any danger in defaulting under existing contracts. The major -- two of the major contractors that we retained to help us in the deployment effort negotiated with the department to string out our payments when we found ourselves in July without sufficient funds to meet the initial payment schedule that we had negotiated. They did so willingly, and we're okay there. But we do need the supplemental by the end of this month, the beginning of next month, because we face substantial payments to third-party screening companies and which we don't have the funds to cover.

REP. MICA: Even with the supplemental, you've -- the secretary's testified here today, it's going to be difficult to accomplish the original mission as mandated by Congress. Is that --

MR. JACKSON: Yes, sir. With a cut of 1 billion to $1 1/2 billion out of a $4.4 billion request, we have to restructure fundamentally the business plan to get us through the end of the year and to do the job that we've been given.

So there is much to look at and a significant amount of work to do to try to figure out what we can accomplish with what we've been given.

REP. MICA: Well, finally, one of the things that I've tried since -- post-9/11 and in our bill was, we authorized $50 million for research and development to get us to the next generation of equipment; and I was shocked to learn, just the last few weeks, that part of that $50 million that was appropriated, I believe 50 percent was earmarked for another project that didn't deal with either checked-baggage screening or with passenger screening. Is that correct?

MR. JACKSON: Yes, sir, that is.

REP. MICA: And so it makes it difficult to even get us to the next generation of technology. And most of the technology we have at our airports today is 1950s-'60s x-ray technology.

So I think, in all fairness to the secretary and to undersecretary now Admiral Loy taking over this task, you have done your best to try to move toward the mandate that Congress imposed in November, but I think we're facing a real crisis at this juncture as you take over, Admiral Loy. Are you planning to sit down and sort this out, Admiral Loy?

MR. LOY: We certainly will sit down and sort it out, Mr. Chairman, but the bottom line is, as the secretary has described it, without some kind of an adjustment either on the requirements end or the resources supplied to meet the mandates, we will have to devise a backup plan for what we now expect to be the funding stream that will flow from the supplemental.

REP. MICA: And the FY '03 appropriations, what's the problem there, finally, Mr. Jackson, with waiting for that? Or how is that going to impact your ability to complete the task?

MR. JACKSON: Mr. Chairman, the secretary announced this morning that the administration would be seeking an additional budget amendment increasing the amount of money devoted to the TSA for fiscal year '03; but given the fact that the fiscal year doesn't begin until October, and given the historical uncertainty about whether or not appropriations will be approved at the actual start of the fiscal year, we're going to have to make a decision in the next several weeks about how to stage the money that we have. So at the end of the game, as Admiral Loy says, we are faced with an anti-deficiency act. We can't spend money that we haven't had appropriated to this function by the Congress. So we will have to re-sort and re-stack the business plan to see what we can do with the money we've been given. It's just like a checkbook that every American has to balance, and we're going to have to balance ours.

REP. MICA: I thank you both. I will work with you, as you know. We have an obligation to put in place the very best protection for the American people possible, both for transportation and aviation security. So we'll figure out a way to get the job done.

Let me yield to our ranking member, Mr. Lipinski.

REP. LIPINSKI: Thank you, Mr. Chairman.

I yield my five minutes to Mr. DeFazio.

REP. PETER DEFAZIO (D-OR): Thank you, Mr. Chairman. I'll dispense with the niceties here.

Mr. Secretary, so you're saying that the administration supported fully the request of the president last week up to the last minute, up to the vote in the committee, since you're blaming Congress and the appropriators for the reduction; is that correct?

SEC. MINETA: I'm sorry?

REP. DEFAZIO: Did the administration fully support its request all the way through the process for the TSA, all the funds that you're now saying are not there that are going to cause you to have problems?

SEC. MINETA: Well, we did support the --

REP. DEFAZIO: Did they fully support it, yes or no? Are you aware?

SEC. MINETA: The only part of the $4.4 million (sic/billion) that they did not support, until the very end, was $200 million less than the $4.4 billion.

REP. DEFAZIO: Right. That's correct. On the last night of negotiations, the right hand of the administration, Mr. Daniels at OMB, requested to the left hand of the administration a $219 million cut in the TSA.

I'm just bemused, unfortunately, by your performance. Last week Mr. Magaw was fired and we're making nice about it. He was incompetent. The problems you had with the appropriators was because Mr. Magaw instilled no confidence; he had no business plan. People thought he was totally out to lunch. But you stuck with him for far too long.

Now suddenly in one week -- last week, you go before this committee, which Mr. Menendez is on, and there is not one inkling, not one breath of a problem. You can meet all the deadlines, everything's fine, everything's good. The appropriators have been talking about these cuts for two months. Two months! And suddenly you're going to say, well, you were out of the loop?

SEC. MINETA: Not at all.

REP. DEFAZIO: And then the administration itself proposed a $219 million cut at the last minute! The president has the authority; will the president ask to restore the $480 million? All he has to do is sign his name to a piece of paper. You're bemoaning the loss of half a billion dollars.

SEC. MINETA: No, no. Mr. -- Mr. DeFazio --

REP. DEFAZIO: He declares an emergency, the money goes back in.

SEC. MINETA: -- you better read -- you better read the --

REP. DEFAZIO: This is the most extraordinary exercise!

Excuse me, Mr. Secretary. I've known you a long time. I am just really -- just really upset at your performance here today. I mean, this was so partisan, so political! There are problems, there are problems with the appropriators, yes. There are problems in this House, in this committee, yes. But there are a hell of a lot of problems downtown! And last week you fired Mr. Magaw, and now it's this week it's all the problem with the appropriators that you can't meet any of these deadlines! This is unbelievable to me!

Now, Mr. Secretary, I'd yield you some time.

SEC. MINETA: We don't have access to the $480 million in that contingency fund unless the president exercises the full $5.1 billion that's unavailable under that conference report for contingency. And so to me, the $480 million doesn't exist. But I know that real money was taken away from us. And we've been making an effort --

REP. DEFAZIO: Mr. Secretary --

SEC. MINETA: -- constantly in terms of trying to restore the money in terms of what we were requesting all the way through.

REP. DEFAZIO: Mr. Secretary, if you would today, with the full support of the president, bring forward a well-documented request -- perhaps it will take longer than today, since I think Mr. Magaw left quite a mess when he was fired, but something brought forward by Admiral Loy, who does have the confidence of the Hill, who did run an agency that's been underfunded for years, who did met his budget guidelines, if you brought that forward, I believe we could jam that through the process in no time at all. If the president said this is essential to protect people, and the only alternative is to delay these deadlines and to have people at risk of their lives, I don't think there'd be a problem.

But when OMB recommends, when the president's own director of OMB recommends a quarter of a billion dollar cut, it's hard to say the administration was there 100 percent and is pushing. And last week you didn't raise a single budgetary issue before the Homeland Security Committee. Mr. Menendez, I think, will wax eloquent about that later. He was there. I'm only talking secondhand.

SEC. MINETA: It wasn't a budgetary hearing. The question is whether or not --

REP. DEFAZIO: But -- but did you -- hadn't you read any of the press accounts about the proposed cuts, the extraordinary failure of Mr. Magaw to convince people that he needed this much money to be able to justify it in any manner? You hadn't heard any whiff of that?

SEC. MINETA: No, the -- I think, Mr. DeFazio --

REP. DEFAZIO: None? And then his health problems just deteriorated.

SEC. MINETA: -- I think you're misreading -- I think you're misreading what was going on during this whole time period. There had been a number of meetings between me personally, the deputy undersecretary, our budget -- assistant secretary of Transportation for budget with the House and Senate, long prior to the conference reporting out their actions.

And that was not available to us until Thursday, as I recall. We didn't even see the language.

REP. DEFAZIO: You hadn't even -- you hadn't heard a thing. That's funny because I read in Congress Daily that they were talking about cutting your budget. David Obey and Mr. Young, the Republicans and the Democrats on the House side, savaged Mr. Magaw.

SEC. MINETA: We knew going in what they were talking about because the House had already passed their bill, as did the Senate. The Senate was 4.7 billion higher than where the House was. But -- we knew that.

REP. DEFAZIO: And the president insisted on cuts in the overall supplemental to meet an arbitrary target.

SEC. MINETA: For TSA, only 200 million to try to get to some figure that would be accommodating. But on top of that --

REP. DEFAZIO: Only 200 million?

SEC. MINETA: That's right. But on top of that --

REP. DEFAZIO: Only? So, you're saying you needed every penny, but that 200 million that the president didn't want doesn't count?

SEC. MINETA: I understand. I've been -- I've been where you've been sitting. But on top of that, now under this new conference report, they're imposing on us, under what they call PPAs -- the programs, projects and activities -- for us to be able to line-item every item, under a long list here on page three and four of the conference report, what we are going to be spending in these categories, and that we will not be able to reprogram or another. And so, they're even putting that much more restriction on our ability to be flexible. So, it just seems to me that here when we're thinking that we're going to see some daylight, we realize that what we -- the light that we're seeing at the end of the tunnel is really the train coming at us.

REP. DEFAZIO: It's a train coming toward you.

SEC. MINETA: Absolutely.

REP. DEFAZIO: Mr. Secretary, if I could, just to get the record straight. The recommendation made by Mr. Daniels, the president's appointee to OMB who is known as Blade or Hatchet Man by the president, who likes to nickname people, so he obviously revels in this guy's actions, he proposed on the last evening a cut of 219 million to an already reduced budget to get it down to 600 million less, to get the whole bill down to an arbitrary figure which the president supported. No matter what was in it. It was just an arbitrary number. That was the bottom-line result they wanted. Mr. Daniels knew when he recommended the 219, you were already short these other funds in what the Appropriations Committee had proposed. He knew that. So, I don't think the right hand of the administration seems to know what the left hand is saying it needs.

I suggest to you, and if I could, in the interests -- my time is up. I will support any reasonable documented request for any amount of money, and I don't believe there's a single member of Congress who would want to go on record not doing that. If the appropriators have done something egregious, point it out, document it, and send back down a well-documented request that people have confidence in, written by Admiral Loy, and, by God, we'll get it through this place, and we'll get it through in a timely manner, and you won't have to re-do everything. I think the re-doing everything at this point seems to me an awfully auspicious sort of coincidence with the firing of Mr. Magaw.

Thank you, Mr. Chairman.

REP. MICA: I thank you. And let me --

SEC. MINETA: Mr. Chairman, may I respond?

REP. MICA: Yes. Go right ahead, Mr. Secretary.

SEC. MINETA: First of all, Mr. DeFazio, we've been at this effort since we sent a letter to the Appropriations Committee on the 27th of June outlining to them what the consequences would be if we did not get the money. Even as late as Thursday night, in terms of the negotiations going on in the conference, I believe we were down to 3.8 billion in terms of where -- what the -- where the conference was going.

But then we found out, even after they were down to the 3.8 billion, they put in some more cuts. So it's -- you know, I'm with you on this in terms of where we are on the funding, and -- because I don't want to see this kind of cut going on. But by the same token, I know that the reality is, if these are the cuts, I know what the impact is going to be in terms of what we're going to have to do at TSA to scale back the program.

REP. MICA: I thank the secretary. Let me -- and the gentleman. Let me turn Mr. Petri.

REP. PETRI: Thank you very much.

Mr. Secretary, thank you for coming and testifying before this committee. Just wanted to say that I, as one member, feel that it's important if we're going to do something in the area of national security in particular that we do it right.

And in that connection, I'm alarmed when you come before us and indicate that the supplemental appropriation bill that we're going to be -- we're scheduled to be voting on possibly later today is 1/3 underfunded so far as your needs are concerned. Do you think it would make sense for us to go back to the drawing boards and do it over? Or should we pass what we have and try to supplement the supplemental? Or what would be your advice as to how we move forward on this?

SEC. MINETA: Well, could I even add another wrinkle to this thing that makes it even worse? Because we were waiting for the funds to come on board to be available to us, we borrowed in two clumps: first, 750 million and then additional 260 million, I believe, from FEMA. So given what is in this supplemental appropriations bill, there is even another billion that is going to have to be reduced for us to pay back FEMA. So it really is very bad situation from my perspective, in terms of what we have to do at TSA.

Now it's above my pay grade or -- in terms of determination. And that is really in the hands of Congress as to what to do with the supplemental. But I don know that given where we are right now -- we started at 4.4; we had reductions from that in terms of how much was taken off by Congress and then how much is available to us in terms of how much working capital TSA will have. And as I recall, that comes down to less than $2 billion. I think it's something like 1.85 billion in terms of available resources.

Now is it too late to do something to plug the dike? Practically speaking, I think it is. And so the question is, how do we make up for it? And the immediate way is to get a budget amendment for fiscal year '03 but again, that's just looking to '03 to make up for the things that we're not going to be able to do in fiscal year '02.

REP. PETRI: Well, how is all of this going to affect the deadlines or timetable that you or Congress or the administration has set for itself?

I mean, we might as well be realistic about this, because the worst thing we need to do is to set goals that because of underfunding or whatever can't be met and then come right up against them and suddenly fall short. It's much better, for confidence and everything else, to recognize reality and set reasonable goals. How will they have to be adjusted, given this one-third shortfall in funding?

SEC. MINETA: Well, Mr. Chairman, I think that's where there is some -- given where we -- what we see coming at us, that determination hasn't really been set in concrete. That's something that we're still discussing among ourselves, as to what's the best approach to take.

And I suppose if I were to think out loud, I mean, we could stay with the November 19th and December 31 deadlines. And yet, on the other hand, it may mean longer lines, because we won't have as many people necessary for the passenger screening, and we may not be able, in terms of the number of people and the number of machines on the bag-screening side, again, not be able to process them.

You know, we're processing 3 million bags a day, 1.1 billion bags a year, and what do we have across the country? Something like 246 EDS machines right now.

And so, again, we can get utilization, as the assistant inspector general talked about. We can get increased utilization. We can get increased bags per hour through those machines. But on our present course, given the monies that are in the conference, then I think we either look at having to slow down the process, in terms of what happens at the airport, or maybe we keep passenger screening at where we intended and slow down the baggage screening piece of it.

REP. PETRI: Mr. Secretary --

SEC. MINETA: But those are the alternatives that -- we haven't come to a conclusion yet --

REP. PETRI: My time has expired.

SEC. MINETA: Yes.

REP. PETRI: But I think it would be worth also reviewing with the airline industry some of their ideas about separating the sheep from the goats, so to speak. There are many people in this country who are frequent flyers, who are screened, some of them two or three times a day, almost daily. And if there are ways of separating those people who are clearly not security risks and concentrating the more limited resources on those who are not vetted in that way, it, I think, would make the whole system much more efficient, and you could probably save some money in the process.

SEC. MINETA: Mr. Chairman, we are looking or working at that right now. We're hoping that our work on CAPS 2 will expedite the very issue and the point that you're making.

REP. MICA: I thank the gentleman and the secretary. Let me yield to the gentlelady from the District, Ms. Norton.

DEL. ELEANOR HOLMES NORTON (D-DC): Welcome, Mr. Secretary.

Let me take an issue off the table before I get to what I regard as very serious personnel matters. New York is where the worst of the 9/11 terrorism occurred.

Is business aviation up in New York? Is business aviation proceeding in New York? General aviation?

SEC. MINETA: General aviation I think is probably -- across the country is down.

DEL. NORTON: No, let me clarify. Are the New York airports accommodating general aviation? Are they open for general aviation?

SEC. MINETA: No, I see what you mean. General aviation is restricted in New York, D.C. and over sports events and --

DEL. NORTON: Is general aviation -- is general -- are the airports in New York open for general aviation? I understand there would be restrictions.

SEC. MINETA: Yeah, they are open, but there are restrictions as to how they operate in New York and D.C. But New York, they are restricted.

DEL. NORTON: Yeah. I raised New York. I could have raised Boston, I could have raised Atlanta. My point is -- my point is that at least general aviation can go into the New York airport with restrictions, as I understand it. Now, general aviation is totally closed down in this, the capital region of the United States, certainly the most important region of the United States.

Now, I bring this up before I get to my other questions, because this airport was treated differently as well when it was closed down for three weeks. Everybody understood why. I want to thank you for working with us to get it open.

But on general aviation, the agency, your agency has been working, apparently, with the industry, indicated there would be a rule by the end of May. This is the end of July. And the capital region, this region, the nation's capital, still has no general aviation. New York does, Boston does, Atlanta does, every other place does. But this place does not. I understand that the industry is willing to do whatever you say do. And still, general aviation isn't open. Again, the same treatment we had with National Airport. We fought it. I'm here to fight it when it comes to general aviation, to ask you why nine, 10 months after 9/11, this is the only airport where general aviation is down and it's up everyplace else?

SEC. MINETA: We were all set to open up Ronald Reagan National Airport to general aviation. We had been meeting with the general aviation community, and I believe we had set the date as June 23rd. But then, all of a sudden, daily I get my intelligence briefings, and in then talking about those intelligence reports, we then decided that we would not proceed with opening of DCA to general aviation. And --

DEL. NORTON: Indefinitely?

SEC. MINETA: -- in the meantime, we have been working with the general aviation community, and last Friday we then had a meeting with all of the principal players in general aviation, and I informed them that for the immediate future, we are not going to be opening Ronald Reagan National Airport.

DEL. NORTON: Did you inform them of why? And what does "the immediate future" mean?

SEC. MINETA: Well, I can't give you a date.

It is, you know, bigger than a breadbasket and not as big as a house. But on the other hand, we did give them a -- we had not a -- what do you call -- a classified briefing, but we did give them a briefing to indicate the nature in a general way of some of the threats that still exist.

DEL. NORTON: Mr. Secretary, I'm going to be in the classified briefing at 2:00, and I just want to put everybody on notice I want very specific answers here --

SEC. MINETA: Absolutely. That's --

DEL. NORTON: -- because I am quite aware that Secret Service wanted to keep National Airport closed permanently. So the notion of running scared at National Airport has to be met.

I do have a question about personnel and recruitment. It was clear that there would be personnel problems before the supplemental mark came down. You were having problems -- you testified to some of them -- in hiring people. I just want some clarification on the personnel front, given what now seems to be inevitable. It looks like that workforce, that non-federalized workforce that is now in place is going to be the workforce for some time to come. I want a discussion of that.

But before that, I want to know -- because I think this may have influenced the appropriators -- you started off with an estimate of something like 28,000 to 31,000. You ultimately said you need 67,000 workers. Well, you can see now you came up to, you know, more than half, more than 50 percent more. I need to know what made that difference from the original estimates and the estimate you now give us, and how the appropriators arrived at 45,000. I have to assume that they didn't pull that out of the air. And I also assume -- (laughs) -- oh, they did? -- I also assume that you should have assumed they would not have given you every body -- every last body that you wanted.

After you let me know what in the world happened, I need to know whether you are intending to keep the majority of this workforce in place, and what you are going to do to make sure they can handle the job, given recent reports that they continue to miss -- apparently, they missed a quarter of the bombs and the guns that were put through as a test most recently. And since they are likely to be the workforce, since you're so far behind, what is being done to train them? How can we be assured that, whatever happens with the back and forth or getting new folks, that there will be people who will not let guns and bombs through?

SEC. MINETA: First of all, the estimates that you speak of are correct, 28(,000) to 30,000. But was just the passenger-screening force and not including the baggage-screening force. And so --

DEL. NORTON: So, why didn't you include both in your --

SEC. MINETA: Because at the time the legislation was being created, it was talking about the passenger screening, and it was only later on that the whole issue of baggage screening came in at the very end.

But when we were first talking, we were only talking about the numbers as they related to passenger screening. Then you ask about whether or not -- and so, that's why we are upper in terms of this year, asking for the equivalent -- what we asked the Appropriations Committee for was 51,253 FTE's, full-time equivalents. But they didn't see fit to do that. They capped us at 45,000 full-time employees, as I recall the phrase in the bill.

Now, you talk about, is that work force going to be there that we have right now? And the answer is no. Because, first of all, I would say that 90 percent of them are part of the private screening companies that we had to keep in place under the law that said we take over everything on the 17th of February. So, we took over all of the screening companies that were there on the 17th. Where they had their contracts with the airlines before, we -- they now have the contracts with TSA. And so, those are the folks who are --

DEL. NORTON: Those are the same folks, Mr. Secretary, aren't they? They just have a different contractor.

SEC. MINETA: Oh, no. No. But what we have done -- what we are doing in terms of as we bring on our work force, training them to much higher standards. Where the present work force had something like -- oh, I've forgotten, maybe six or eight hours of classroom training and 40 hours of on-the-job training, our new TSA federal work force has 44 hours of classroom training and 60 hours of on-the-job training. So, it's a vastly different standard that we're applying.

DEL. NORTON: Mr. Secretary, my time is up. I just want to note that these are the folks that are missing a quarter -- I'm talking about the non-federal work force that clearly is going to be in place. They are missing a quarter of the guns and the bombs.

SEC. MINETA: They're not going to be in place.

DEL. NORTON: Well, you -- the testimony here is that you are very far behind in hiring to do this job.

SEC. MINETA: That's right. The hiring -- first of all, in hiring the new work force, we're on schedule. If you want to look at what our benchmarks have been in terms of what our expectation of the number of employees of the new work force, we are on schedule. And we will submit that for the record.

DEL. NORTON: Okay, but -- Mr. Chairman, this is very important testimony because the testimony is that -- is that none of this contractor work force will be in place, this work force that is missing guns and bombs will be in place and you will meet the deadline for hiring federalized people, hiring and training federalized people.

SEC. MINETA: Again, you're -- it's not the same work force that will be there on the 19th of --

DEL. NORTON: That's what I understand your testimony to be. That's what I understand your testimony to be.

SEC. MINETA: No.

REP. MICA: I'm going to have to turn to the next member. We've got to get through this, and we've got a lot of members that have questions. We'll get -- and you can ask some of these questions to the session at 2:00.

Mr. Duncan.

REP. JOHN J. DUNCAN, JR. (R-TN): Well, thank you, Mr. Chairman.

Let me, if I may, ask Admiral Loy a couple of questions. And I'm sure other members run into this same situation. But I go home every weekend, and as I walk through the Knoxville airport when I get in, and then I come back on Monday or whenever, and I get hit by a change of shifts, I guess, but I have those screeners ask me every time, every weekend, about their jobs.

And at a hearing a few months ago, I asked Secretary Magaw -- I told him that I did not think that we should fire 28,000 screeners just to start over again if they had a good record and were doing a good job. And he assured me that there would be a preference given to the people who were already working as screeners, as long as they had a job and they were fluent in English, which was one of the requirements in our bill. Can you give me that same assurance, so that I can tell the screeners in Knoxville when I'm asked about it when I go home on Friday, that they will be able to keep their jobs as long as they have a good record and they're doing a good job?

MR. LOY: Sir, the process is simply an application process. Our experience to date with BWI, for example, was that from the existing screeners there, we only had about a 10-percent qualification rate in the aftermath of application and checking their citizenship requirements, checking the English-proficiency requirements and then running screening tests associated with their potential to be pulled on as new employees. But the opportunity -- you can absolutely guarantee those folks that their opportunity to be part of that application process for consideration is an absolute.

REP. DUNCAN: I don't think you'll run into the same citizenship and English-language failures, I don't think, at Knoxville. But also, I do want to tell you this, and I wish you would check into this: I had a constituent call yesterday who said he was notified last Friday night around 11:00 p.m. that he was to report to a shopping mall in Oak Ridge to interview for a screening position. And he said he drove 100 miles round trip to be there by 7:00 in the morning, and after waiting for over an hour, along with many other applicants, no one from the TSA showed up or ever called to cancel the meeting.

Also, I read in The Wall Street Journal -- and I've read some other stories that said that some TSA officials have not been cooperating or cordial with some of the local airport managers. Now I've not heard this complaint from the Knoxville airport, but I did read in one story that this -- it told about the Orlando airport. It said a TSA advance team showed up unannounced and set up a hiring center for screeners on airport property. When the airport director went to investigate, he was threatened with arrest for trespassing in a federal area. Is that true?

MR. LOY: The incident has been pretty well documented at this point, Mr. Duncan. And the incident occurred. There was a communications gap that was unacceptable. The TSA end of that operation is no longer present there, you know, doing that job. So the communications-improvement game is something that I'm very much dedicated to. And that is not only with airports but with airlines executives, with the Congress and with whoever else is necessary to help us understand and make a contribution to sorting this out in the future.

REP. DUNCAN: All right. Also, I've been asked by many passengers who travel often if we're making progress toward a trusted- traveler program or -- it's called other names by other people. What can you tell me about that?

MR. LOY: As the secretary testified earlier, sir, there is, I think, general acceptance that the notion of CAPS II, when it comes online, will make a great boost forward with the potential for a trusted-traveler program to be dealt with.

We believe that there are certain absolutes associated with that, background investigations with some kind of a spectrum beyond which we will not go in terms of what we might find in those background investigations. But there is absolutely no doubt that part of the hassle reduction program that we need to offer to the system at large will be a trusted traveler program of some kind.

REP. DUNCAN: Also, finally, let me just say that I know Secretary Mineta, when he was here on this committee, was a strong supporter of general aviation, as I tried to be. And I hope that we can work something out to have some of the same concerns in regard to general aviation as Mrs. Norton. And I know that you all are struggling with that also. But that -- general aviation is a very, very important part of our economy, and we're already reading enough bad stories about the economy right now, and so we need to, I think -- I hope we can work on that a little bit.

MR. LOY: Couldn't agree with you more, sir.

REP. DUNCAN: All right, thank you very much.

SEC. MINETA: Mr. Chairman, may I respond to one part of the question?

REP. MICA: Yes. Yes, go right ahead, Mr. Secretary.

SEC. MINETA: Mr. Duncan, you were asking about the trusted traveler program. We are going to go into a trusted employee program at TSA. But in the supplemental, they say that TSA is directed not to obligate further funding on this effort, what we call TWIC, the Transport Worker Identification Card.

So again, you know, there are all kinds -- there are some things in this bill that some people think could be ways to keep spending down. But there's a lot of things in here that are "gotchas." And I don't think we ought to be legislating on appropriations bill by "gotchas."

REP. DUNCAN: You mean it directs you not to go further with the trusted employee program?

SEC. MINETA: It does not allow us to move forward with the Transportation Worker Identification Card. And this would be including for all personnel -- government, commercial, non-profit and others requiring access to secure facilities in any mode of transportation nationwide.

REP. DUNCAN: Well, as you know, I have some very close friends on the Appropriations Committee. I may talk to them about that, Mr. Secretary.

SEC. MINETA: We'd appreciate it, Mr. Chairman.

REP. DUNCAN: Thanks very much.

REP. MICA: The gentleman from Maine, Mr. Baldacci.

REP. JOHN BALDACCI (D-ME): Thank you very much, Mr. Mica.

Welcome, Mr. Mineta. Nice to have you here. There are three areas that bother me particularly. The three areas that bother me particularly are, one, who is running the airport screening security program, the airlines or the Security Administration? I get different signals at different times. Who is responsible for the policies instituted at the airports, the Security Administration or the airlines? Do you want to comment on that?

SEC. MINETA: Yes, sir. Under the Aviation Transportation Security Act, for the first time in the history of our country, aviation security has been made a direct responsibility of the federal government. So that responsibility is the Transportation Security Administration of the Department of Transportation.

REP. BALDACCI: The trusted traveler program that's been proposed to reduce the hassle factor for frequent fliers, the airlines have advocated the implementation of a trusted traveler program.

Has that been done in conjunction or coordinated with the Transportation Security Administration?

SEC. MINETA: We have asked the airlines, through the Air Transport Association, to submit to us what they want to see in a "trusted traveler" program. I believe we have made that request on a number of occasions, probably going back to -- (to staff) -- six months ago? At least six months ago. We have not gotten that, and yet everyone complains at us about not having a "trusted traveler" program. And we keep going back and saying, "Well, airlines, submit something to us." And we have not yet heard from them.

And I know there's a great deal of interest in this. Director Ridge would like to see some kind of a "trusted traveler" program, and so at a meeting at the White House one day, with Governor Ridge there, as well as all of the airline CEOs, we said, "Please, Governor Ridge, and working with the CEOs, submit to us a 'trusted traveler' program that you would like to see." And as of 12 noon on the 23rd of July, I'd say we still haven't seen it.

REP. BALDACCI: Mr. Mineta, when I get a ticket at the counter and it comes out with a category stamped on it, it's my understanding, at least from the counter people, that that determines whether we get wanded or screened or additional security reviews occur. That establishment of that category on that ticket -- is that done in consultation with the Security Administration in developing as to who is reviewed and who isn't reviewed? Or is that done by the airport particularly -- the airline?

SEC. MINETA: No, that is done under what is referred to as CAPPS. The -- and the CAPPS program will determine who becomes a selectee. And so the CAPPS is the computer-assisted pre-screening -- passenger pre-screening system.

Now the one we have right now is very elemental, and it's been in existence for a number of years. And you probably would become Exhibit 1 as to why CAPPS is not working.

And so what we are doing is working on a new CAPPS II program. We're hoping to have that developed -- and maybe I could ask Deputy Secretary Jackson, but I believe, as I recall, it's in the August/September time frame that we hope to have the outline of the new program developed.

REP. BALDACCI: I think that -- and I appreciate that, but one of the common complaints they got before the establishment of the department and why we needed to federalize the screeners is coordination, uniformity of practices and review, because different airlines have different practices.

SEC. MINETA: Yeah. Yeah. Absolutely.

REP. BALDACCI: And I do not see that changing eight months into this department, and it being at the core of some of the issues. And we'll review that particular issue later.

One of the other things that concerns me is that all of the sky marshal requirements and all of the baggage screener requirements and mandates have not been achieved, and it didn't look like it was going to be achievable, from what the GSA had to say in terms of its oversight. And yet this week we're going to be asked to merge this with the Homeland Security Department.

And there's a concern expressed in the GAO report about this overlapping that's going to be taking place. And they use the example of a Customs inspector, intelligence information officer, as an example, and the recommendation was maybe holding back on moving forward until that all shakes out.

Are you going to be able to move ahead in this new department and be able to maintain the mandates that are in the law that the Congress has passed; you know, to make sure that they're met?

SEC. MINETA: I have told our folks at the Transportation Security Administration that they are not to look over their shoulder as to what their future might be, whether it's going to be in Department of Transportation or in the Department of Homeland Security; that we are going to be driven by the provisions of the Aviation and Transportation Security Act. And in that, there are some number of schedules, and we have to meet the mandates of that legislation. And so the folks at TSA are focused on what they have to do, and they are not letting up based on where they think they might be tomorrow or whatever date.

See, first of all, even if you folks pass the Department of Homeland Security bill, that doesn't go into effect until January 1, 2003. The mandates we have are November 19th, 2002, and December 31, 2002. So we've got to bust our buttons to make sure we adhere to those mandates and not worry about anything else. And that's what we are doing. That's why I say we have our time lines all drawn out as to what we're going to do for personnel, machines, whatever. And we're meeting those schedules.

REP. BALDACCI: Mr. Chairman, just one final question.

Last week, I think, or the week before, the Congress, because of the frustration with the department, we did have a permit program to be able to arm pilots that was supposed to have had a process to be reviewed by the department on a case-by-case basis. And because of frustration, I believe, being a large element of being able to work within that process, the Congress went ahead and voted to go ahead in a much more expansive program. Have you or the administration changed your position, or is your position still, in regards to that issue of arming the pilots, the same that it's been?

SEC. MINETA: That is still under discussion within the administration. In terms of -- and one of the things I've asked Admiral Loy to do is to look at this in terms of should we be taking another approach, in terms of lethal versus non-lethal, in terms of arming pilots. Because when you look at this legislation -- and I recognize the terrific work that all of you did here on this committee, but nowhere have I seen so far the costs that are associated with this program. And from our reading of this legislation right now, it's something like $860 million to set up the program, and then about $250 million a year to do the quarterly recurrent training that would be required of the pilots.

So, rather than to get into the business of arming 82,000 pilots and having to purchase the weapons, train the pilots and then do the recurrent training, I've asked Admiral Loy to take a look at this and see whether or not -- is there some alternative that we might be able to come up with?

Even if it is lethal weapons, do we give each and every one of the pilots a weapon? Or can we have an enclosure, a secure enclosure, in the cockpits? And yet, there are other kinds of problems with that in terms of maintenance and cleaning and what about -- I don't know, if I'm the pilot who opens it up, and the next crew comes on, and I forget to lock the compartment, whatever? But there are a lot of things that we'd like to take a look at, and I've asked Admiral Loy to take a look at in terms of alternatives, both lethal as well as non- lethal.

REP. BALDACCI: So, it'd be fair to say, Mr. Mineta, that in its current form, it would not be acceptable at this point, and that you're reviewing alternatives to that?

SEC. MINETA: From my personal perspective, yes, sir.

REP. BALDACCI: Thank you.

REP. MICA: All right. Thank you very much. Doctor Horn --

MR. JACKSON: Mr. Chairman, with your indulgence --

REP. MICA: Yes?

MR. JACKSON: -- can I clarify one point?

REP. MICA: Sure. Go ahead.

MR. JACKSON: Sir, on the federal air marshal program that you mentioned, we would be happy in the briefing this afternoon to talk about the federal air marshal program, but I will just give you the punchline. We set significantly expanded goals for this program back in November. The secretary made a pledge to the president about exactly what he would deliver on those very ambitious goals. By midpoint this year, we have nailed those goals to the wall. We have a significantly expanded force up in the air. And I'd be happy to answer questions this afternoon on that program.

REP. BALDACCI: Well, just in completion, let me just say, look, we have all a major task to undertake. And I think what we've recognized is to a large degree there's a spirit of cooperation to bring this about successfully. It does get frustrating at times, but I think everybody is trying to get to the main mission of security for American passengers and the American public. And I appreciate the opportunity to work constructively with you all as we try to address that. But I think that we cannot accept this going on and on without having people recognize that this is the main mission, and they've either got to get with the program or find alternatives.

REP. MICA: All right. Thank you very much.

Dr. Horn.

REP. STEPHEN HORN (R-CA): Thank you, Mr. Chairman.

I'll get to some of these in the classified part, but I'm concerned with the size of carry-on baggage. Too many times, I've seen passengers injured by falling carry-on baggage that is simply too large to be placed in the overhead bins of our commercial airlines. As more and more Americans return to flying, I'm wondering how you're planning on dealing with this problem? In addition, since the tragic events of September 11th, many airports were given permission from the former Transportation Security Administrator Magaw that they could remove the templates from the X-ray machines to help expedite the screening process. This has led to many passengers carrying extremely large carry-on baggage. Are you open to replacing those templates to ensure that oversize baggage is checked at the ticket counter rather than being brought aboard airplanes and placed in overhead bins?

SEC. MINETA: Congressman, that -- in terms of the baggage templates of which you speak, that really has -- those have been removed from -- as far as TSA is concerned, and leaving that up to the airlines for -- in terms of the size of the bag.

But I think where -- the previous rules usually have been relating to whether or not a person has two carry-ons or one and -- but not in terms of the size. Now I might be correcting Michael.

MR. JACKSON: We'd be happy to look at the question. We have discussed some of this with the airlines, who have the principal recommending force here. But we'd be happy to talk further about it and keep (tracking ?).

REP. HORN: Let me go after another issue, which -- my colleague on the other side of the aisle just touched on the thing. And that is, we gave the department discretionary authority to enter the cooperative agreements with local law enforcement agencies to allow police officers and sheriffs' deputies to serve as deputized air marshal (sic). The new law requires that they receive all the necessary training and certification before they can carry weapons on board an aircraft. This program could provide a pool of trained law enforcement personnel to supplement the air marshal program at significant savings for the taxpayers.

What's the current status of this provision in the new law? Is this being actively explored, and is it a viable solution for some of the problems that go with expanding the air marshal program very rapidly?

SEC. MINETA: Congressman, I believe we still have that discretionary authority, because in the state of California, as you probably know, we are now allowing the California Highway Patrol on intrastate flights to board with their weapons. And -- but we have also required of them specific training in terms of serving in that capacity, so that even if they are law-enforcement officers in another capacity, if they are serving as air marshals on board an airplane, then they have to have specific training.

And so to that extent -- we still have the discretionary authority, but the mere fact that -- let's say there's somebody on vacation who would like to serve as a federal air marshal; we haven't done that at all. But we are looking at programs where people can be authorized in their -- as air marshals in their non-local law enforcement capacity. But they do have to go through specific training for that.

REP. HORN: How extensive is that training?

SEC. MINETA: It's extensive -- especially as it relates to firing of the weapon, as to how it's done and under what circumstances. And so one of the things that we have to be careful of -- there are people who want to purposely have some kind of incident occur on the airplane so that they might be able to identify who the air marshal is on board -- because as soon as there's a scuffle, then if someone stands up to move forward to try to deal with the situation, then the air marshals are giving themselves away right away. And then, as they get up, they'll say, "Ha, ha, ha ha. We know what you do."

And so again, there is specific training that we have to give to people on not only when they exercise the use of the lethal weapon but in terms of their own conduct when things happen. So they're well trained, they sit there as a passenger. And frankly, you know, you wouldn't be able to -- I don't think -- and I fly, as you do, a great deal, but I don't think I'd be able to identify an air marshal on board. And if I did, I wouldn't say anything.

REP. HORN: All right. Thank you very much.

I'm told that on the Democratic side, I'm supposed to go to Mrs. Brown next.

So, Ms. Brown.

REP. CORRINE BROWN (D-FL): Thank you, Mr. Chairman.

Welcome, Mr. Secretary, Mr. Loy. My first question dealt with the incident that happened at the Orlando airport. Orlando is in my area. And I wanted to know who was in charge of informing the airport administrators when the TSA is planning to conduct screening, interviews and other activities at the airport. But knowing you, Mr. Loy, and having -- working with you -- with the Coast Guard, I know that you are going to correct that communication problem with the airport directors.

MR. LOY: Yes, ma'am. We have already made it clear to all those players that they're what I call common stakeholders in the well-being of the security profile that we want to get to that airport. So during the assessment process, during the data-gathering process we are making sure that Boeing contractors, for example, know when the Lockheed Martin people are going to be there so there is communication there. And absolutely with all of the local players, the airlines at that airport as well as the airport managers themselves. It is unacceptable for us to do anything other than do that right.

REP. BROWN: I have a concern that has been raised from airport directors and the screeners. I push for the federalizing of the workers because I support the training, the upgrade, the -- a lot of the companies was (sic) just taking all of the dollars, not investing in the workers itself. But I am very concerned that minorities, females, Hispanics are not given the opportunities to be screeners. I think you've hired about 45 directors. My understanding, none of them are females or African Americans, and maybe one or two Hispanics. I am very concerned, and when you look at the contracting of Boeing and Lockheed Martin, none of the contracts have gone to minority qualified business who have been working in the area of -- you know, with the airports for years, particularly in central Florida. Can you address that? I know you just got there.

MR. LOY: (Laughs.)

REP. BROWN: But it is a problem that exists once you got there.

MR. LOY: I can offer several comments, Ms. Brown. And if Mr. Jackson or the secretary would like to add, they certainly can.

First of all, I think you know personally my devotion to diversity with respect to organizations and how they should be led. And I certainly will bring that same attention to detail to the new job.

Secondly, within the Boeing and the Lockheed Martin contracts there are a host of subcontractors, and we have been working very hard with them to make sure that 8-A and minority-owned contractors are part and parcel of their bigger effort to get done the challenges that we've offered to them. So the -- I will certainly take a hard look at the process. We realize first and foremost that we had --

The gender issue rose its head relatively early. One of the opportunities that lends itself quite readily is part-time or seasonal employment that often is available to a woman that otherwise would not be available for a normal eight-hour day. So we're stressing very hard the opportunities that could materialize with part-time and seasonal employment. And we are working hard on making sure that we have a balanced workforce. And, in fact, we actually require a balanced workforce with respect to the provisions associated with any passenger that walks to the right counter and needs wanted -- to be so wanted by a member of that same gender.

REP. BROWN: But you know that's not happening. I mean, I travel twice a week, and the person that screened me is not a female. Never.

But they will get you one if you're willing to wait aside and request it.

MR. LOY: If you ask for one.

REP. BROWN: So I just go with the flow, like most people.

MR. LOY: Yes, ma'am. If you ask for one, you certainly will be provided a female wander.

SEC. MINETA: Mr. Chairman, may I also add --

REP. DUNCAN: Yes, sir, Mr. Secretary.

SEC. MINETA: -- first of all, in terms of any wanding that goes on, it has to be of the same gender. That is a rule, and if you're not getting that, then that's a breakdown in our own system.

REP. BROWN: Well, I can assure you, Mr. Secretary, that it is not happening. And in fact, in one case, I had to ask for a female for another person because the person that was doing the wanding, in my opinion, was enjoying it too much.

SEC. MINETA: Well, no, that is a very -- that's the very reason why we instituted this policy of same-gender wanding.

And the other thing is that in terms of my own values, my own interests, this whole issue of diversity in the workforce is very strong. It's something that I refer to on a regular basis as I get reports, not only as it relates to TSA -- especially as it relates to TSA, but to all the activities within the department -- boards, commissions, whatever. Sean Moss, our director of small business and disadvantaged business units, is integrally involved with the procurement people at TSA to try to look for those kinds of opportunities for small business and women-owned businesses.

So again, this is something we're trying -- that we are doing on a regular basis. And so -- and you're absolutely right, from my perspective, the results are not healthy, but we keep working at it. And I know that Admiral Loy will continue that effort.

REP. BROWN: Well, I feel better that -- now that Mr. Loy is in place, that things will improve, having worked with him, you know, over the Coast Guard as the ranking person. But I do also know your commitment, Mr. Secretary, and I just wanted you to know that it is not happening. And if you look at the directors that's in place, out of the 45 you have no women and no minorities.

SEC. MINETA: We do have women, ma'am. We have women -- we have a woman federal security director at Phoenix; Mobile, Alabama. I can't think of where we have, but we have -- Stan Kobyashi (ph) in Honolulu is a minority. (Willy ?) Williams in Atlanta. But not enough -- but you're right, not enough.

REP. BROWN: Okay, and I just want to know that -- some top-level people had applied that I knew about, who had been United States Marshals, you know, in the Florida area, and in many cases was not even given the courtesy of a interview, which is, you know, just really unacceptable. They had strong backgrounds with law enforcement. So I have a concern there.

Let me just go on quickly.

REP. DUNCAN: No, no. We've got to move on to other members, Ms. Brown. I'm sorry. We've got so many other members here.

REP. BROWN: Well, I will be at the meeting at 2:00.

REP. DUNCAN: Okay. Dr. Ehlers.

REP. VERNON EHLERS (R-MI): Thank you, Mr. Chairman.

I will not skip the niceties, as one member did. I do want to welcome you, Admiral Loy. I appreciated your service previously and working with us on this committee, and I look forward to some really good things from you.

MR. LOY: Thank you, sir.

REP. EHLERS: And I am very pleased that you received that appointment.

I also want to mention, since my home city of Grand Rapids was one of the pilot airports, even though they did not ask to be, but I assume they were because I've raised such a fuss about the fact that you were neglecting smaller airports, it is not working well.

I do have to say the EDS machines, explosive detection machines, somewhat to my surprise, are working out well. And it's to my surprise because they are really crammed into a crowded lobby. The flow pattern is very bad. The airport is going to have to do some rather expensive expansion to accommodate it.

But the reason I say it's working well is that people are pleased with it. And that makes the gate attendants -- pardon me, the ticket counter folks very pleased, because they're not getting any complaints. They expect a lot of complaints. The passengers are very happy to see their bags checked for explosives, because they know every bag is being checked. And so I have to say that part of it is a success.

There was the same problem, relationship difficulties, between the TSA and the airport that you've heard about before. And, in fact, at one point, the TSA packed up and left, said "We're not going to deal with you." And the reason was simply because the airport director required at least for the space they were using, he was going to give it to them free. But they refused to sign a lease. And what's especially ironic about it is that the Customs Service, which is at the airport, for years has had a lease, free of charge again, because -- out of courtesy for the federal government. So you had some rough -- (laughs) -- rough bumps, and I hope this work with the pilot airports will certainly help you do better in the rest of them.

The -- I would also make a plea. We haven't -- I haven't heard this discussed at all, but I think it's very important that we get in place rather rapidly a more rapid method of security for frequent fliers. If you -- I did some calculations on that, just observing the people I know. And since I fly in and out of my city every week, I know who the frequent fliers are. And I look at those numbers, and if we had a more rapid method of dealing with them, it could really help unclog the lines that you have at the security stations. And it wouldn't be that hard to do. So I hope you do pursue that, because I see that as actually a cost-effective way of helping shorten the lines at very little cost. Just as you're trying to do it for the employees, it should be done for the frequent fliers as well.

Let me also just comment on the incredible need for uniformity and understandability of the rules for the passenger screeners and the baggage screeners. And today is not a good day to talk to me about it, because I had a horrible experience yesterday. We've also had two very bad experiences in my home city airport at Grand Rapids in the past two weeks, where two females were -- they call it "strip searched". That doesn't quite fit the police definition of a strip search. But they had to have their -- they had blouses lifted, skirts pulled down, and even underclothing. In one case, it was a cancer patient who had a metal implant. She had had a double mastectomy, had metal implants in both breasts, and, of course, that set off the detector. Even though she had a doctor's statement and her medical records with her, they insisted that she remove her blouse and lift her brassiere. I -- that is incomprehensible, and we've already communicated that to the secretary. And yet other airports treat it much better. Similarly, at my airport, at which the screeners are by far above the national average, I found it on my travels, very often do things better and differently from other airports. There's just a total lack of uniformity, but also a lack of understanding of the rules. And frankly, I've gotten in trouble with some of them because they think any customer who argues with them is obviously a troublemaker or a suspect. But I've had cases where they simply don't know the rules. And I've told them that they're -- they don't know the rules and they're not applying them right. Then, of course, then I'm immediately subjected to a greater search. That's -- the need for uniformity of rules, it's great.

Now, how long is that going to take? Are the rules well established now? Should the people out there know them, even though they're still the previous employees? What's the process? And, I guess, Michael, you might be the best one to answer that.

MR. JACKSON: Yes, sir, I'd be happy to. This is something that you are absolutely appropriately raising and we've been struggling with to bring uniformity on what was multiple different teams of people trained in different ways by different people for different standards. And we have been trying to bring greater uniformity. I think we have made moderately good success there, but not good enough. The real solution to this one is that beginning under our plan, this summer we are beginning these massive roll-overs to have federal screeners. And is the uniformity. That's the key to this problem. That is, a consistent training, a retraining and testing, and education to courtesy and decency in the screening process.

So, we believe we can take care of this problem with the new work force. And we certainly don't think that we have a free pass on dealing with it during the transitional period as well. It's just that I honestly confess we're struggling with it each day. But I think that the training program is the key to getting this problem nailed permanently and effectively. And that is part of what we're doing with the switchover to the federal work force.

REP. EHLERS: (Inaudible.)

REP. DUNCAN: All right, thank you very much. Dr. Ehlers --

REP. EHLERS: Just one quick --

REP. DUNCAN: Well, very quickly. I've got all these other members that need to ask questions, and we're going to run into the 2:00 --

REP. EHLERS: This will be very quick. Are you still changing the rules? Because yesterday I was screened three times. And one time, I was told when I objected to certain things, they said, "Well, this is a new rule. Went into effect two weeks ago."

MR. JACKSON: We are constantly looking at the rules in order to evaluate their utility against the threat that we see. So, we continuously look at the threat. We take experience from other airports, and we're trying to refine them. I think we're going through a bubble of change which should stabilize out later this fall. But we are constantly looking.

REP. DUNCAN: Let me just apologize to all the members. I'm told we have to be out of here a little bit after 1:00 to do a security sweep. And so, I'm going to have to be really strict with this five- minute rule. And we'll go next to Ms. Millender-McDonald.

REP. JUANITA MILLENDER-MCDONALD (D-CA): Thank you, Mr. Chairman. I hope to be rather brief. I think I will.

It's good to see you, Mr. Secretary, again, our native son from California. And, you know, they say hindsight is 20/20. Perhaps had we looked at and got a more comprehensive and cohesive plan, short and long term, for TSA, maybe we would not be in this predicament. Who knows? But it certainly seems as if there was not a plan that was working or a plan at all. And so, this is why we've stumbled into so much.

But, Mr. Secretary, as I've spoken with persons around California in terms of TSA, it has been my understanding of their comments that the interaction with TSA has not been the best, at best. And so, I hope that in the future there will be a more cohesive, more uniform type of training methodology that will create a better climate.

I was also speaking to the LAX folks, and in the recent incidents at LAX, they are having to expend greater resources to provide security at the security checkpoints because of those incidents of July 4th. And I would like to ask you, and like for you to tell this subcommittee, just what actions are you planning to or TSA is considering or the acting person to secure the areas in front of checkpoints? Because it happened in LAX. It could very well happen at O'Hare and all the other big airports.

And the second thing is, in spite of us not having EDS's in place to the fullest extent that we want, I continue to talk about the unaddressed security gap that we have and the emotional investment in new screening security. I would like for you and all of you who are sitting before me to look at Telair's Hardened Unit Load Device, which is a product that you put in the belly of a plane that will secure to ensure that there will not be any explosives -- or it will not blow up the plane if explosives are inside of this apparatus. And it's called H-U-L-D, HULD. Please let us bring these folks in so that you can look at that. In light of not having enough EDS, we need to look at other devices that will help us in circumventing any airplanes being blown up because of a lack of EDS.

So I urge you to look at that. Telair is in my district. I would love to invite them back here. They would be happy to come back and let you see this.

But in light of the incidents of LAX, what are we putting in place for that, given that they're utilizing their resources for other things in order to secure that checkpoint?

SEC. MINETA: That's correct about the -- local airports are using, in many instances, local law enforcement in order to -- because we do not have our own federal PSA LEOs, the law enforcement officers. And so to the extent that we don't have the law enforcement officers on board, we are contracting with the local airport authority or the city to provide that law enforcement capability. And we are paying and reimbursing the local authority for that, and --

REP. MILLENDER-MCDONALD: Are you? Because I talked with the airports authority, and at the time I spoke with them, which was as late as last week, that was not my indications of what they said. So I would like to revisit this --

SEC. MINETA: Okay, I'll check on it.

REP. MILLENDER-MCDONALD: Yes, please.

SEC. MINETA: But we're providing that at the checkpoints, so I'll look -- but let me check on that.

REP. MILLENDER-MCDONALD: Could you please check on that?

SEC. MINETA: Absolutely.

REP. MILLENDER-MCDONALD: And can we please invite Telair to come and see you again on this whole --

SEC. MINETA: Yeah, I thought we were doing some on that Kevlar hardened -- (to staff) -- are we not --

STAFF: (Off mike.)

SEC. MINETA: They are already one of two approved hardened container contractors.

REP. MILLENDER-MCDONALD: That's correct; they are approved. But to get it implemented and utilized is what I suppose we're asking for, and I will talk with you on that at a later date.

SEC. MINETA: I would assume that that will be up to the airlines themselves to say, "Yes, we're going to order from Supplier A or Supplier B," and --

REP. MILLENDER-MCDONALD: So it's the airlines who would have the ultimate decision with that?

SEC. MINETA: And I would assume that they would not be buying them until they have to replace their own containers.

REP. MILLENDER-MCDONALD: That is your understanding.

SEC. MINETA: But we'll follow up on that with --

REP. MILLENDER-MCDONALD: Thank you, Mr. Chairman.

REP. DUNCAN: All right. Thank you, Ms. Millender-McDonald.

Mr. Thune.

REP. JOHN THUNE (R-SD): Thank you, Mr. Chairman. And I appreciate the testimony this morning and would -- I was interested in the comments in response to Mr. Ehlers' question, because I also represent a number of smaller airports and ensuring that there is a uniform approach to larger and more rural airports is very important.

I have just a couple of quick questions. One has to do with the -- and Secretary Mineta, I think the department and TSA recently released a security rule for charter aircraft weighing 95,000 pounds or more. And I understand that it does exclude some of the -- you know, the vast majority of on-demand air taxi operators that -- because they have lighter aircraft. But it does not exclude those that may operate heavier ones.

And I'm just curious -- this is something that's been brought up from the industry -- in my state we have a lot of charter traffic into and out of South Dakota because sometimes our commercial operations require that people find other ways of getting to their destinations -- about how you would propose to implement this and the concerns that have been raised logistically -- the commercial airport in Sioux Falls, South Dakota, is an example -- is right here, and then you've got the general aviation, the charter services over here, and how are you going to screen all these people and, you know, the equipment and everything else? I mean, it just seems like it's going to be a very difficult thing to do. And I'm curious as to your thoughts about that, because economically that's something that has a big impact in my state.

As I said, we have a lot of charter operations. So your thoughts?

SEC. MINETA: First of all, the rule relating to security for charters is 12,500 up to 95,000 and then another rule for 95,000 pounds and above. And those have now been issued where they're in a combat period. I believe they've been in a combat period. But in any event, what we're trying to do -- and we've been working with those associations that represent charters and try to work out a program so that it is not financially burdensome but yet, on the other hand, it's something that there's a great deal of interest to make sure that we do have some kind of control in terms of security provisions, even with a smaller air-taxi operation or charter operation. And so we are working with the professional associations on trying to devise a common-sense approach to this.

REP. THUNE: I appreciate that, and I would encourage you to continue to work closely with those organizations. And those services are an important, as I said, economic component in our state. And I think they have some unique concerns and needs, and it's going to require a certain amount of flexibility to deal with the -- you know, obviously, the security requirements but do it in a way that is not, you know, just completely over the top in terms of the economic impact and then also the -- just the other issues associated with forcing people who come in and use charter services to go through the same sort of screening you would in a commercial operation.

SEC. MINETA: In fact, it was a week ago today, as I think about it, that Deputy Secretary Jackson and I met with them about security issues.

REP. THUNE: One other question -- and this comes back to a question that was asked earlier, and I'm not sure I got a definitive answer, but one of the questions has been raised among the employees that currently serve as screeners in the airports in South Dakota is, as this transition takes place -- and obviously, ours is a smaller airport, so our expectation is that it'll probably happen somewhere down the road -- but nevertheless, there is a concern that a number of the people who I think in the airport -- and I travel a lot -- do an exceptional job there -- about their jobs and what it will mean as this is implemented in terms of people who are currently serving in those positions.

If they are doing a good job and they meet the requirements under the law, will they continue to serve in those (positions ?)? I think the chairman actually asked that question earlier, but that's a question that I'm asked on a routine basis, too. And I'm not sure I got a clear, definitive answer to that. I think you at least made some reference, some passing reference to that. But are those people who are currently serving in those positions, if they are up to the task, going to continue to serve there?

SEC. MINETA: Well, they would be, but the problem, I guess, is, first of all, they have to apply through two methods right now: a 1- 800 number or through an online registration on their part. Once they do that, then they would be notified to come to an assessment center. Now one of the problems we've had so far is that we haven't had enough assessment centers.

And so one of the things that the contractor is doing is to broaden the number of assessment centers that they do have, so that people in more rural areas will still be able to get to an assessment center to get onto the roles for consideration for the screener positions.

But the mere fact that they're a screener right now is not a guarantee that they will be part of the new workforce. But again, because of their experience, then I think they would have a better chance.

And, Michael, maybe you can --

MR. JACKSON: The secretary's absolutely right that there's not an absolute lock on getting a job. But this is just common sense, and we're trying to put common sense into play as much as possible in this world.

We're recruiting in the sense of telling people: Look, you're working here. Do you want to stay? We're looking for people that have a brightness in the eyes and a conviction to work. And we're asking our federal security directors and our IFRs to say, "Here's how to apply. Do you know where to go? Do you have the forms? Is there any question I can do to help you?" So we're trying to make our people recruiting agents for good employees and to do that on a proactive basis in the airports.

We have to tell you you have to meet the citizenship requirement, the education requirements, the other things that are in the law. But it's part of our job to go out and find the very best people, and if some of them are sitting on our doorstep, we'd be foolish not to pull them in and ask them to help out.

REP. DUNCAN: All right, thank you very much.

Mr. Sandlin.

REP. MAX SANDLIN (D-TX): Thank you, Mr. Chairman. I'll be very quick.

Following up on what Mr. Thune asked, Mr. Secretary, could you tell us what the reasoning was, or how the 95,000-pound limit was set? It seems to be an arbitrary limit. And I understand that there is an organization called the International Civil Aviation Organization that makes changes at 100,000. Could you comment maybe on that weight limit and how it was selected?

SEC. MINETA: Let me get some help.

(Confers off mike with staff.)

Michael?

MR. JACKSON: Sir, I think it was statutorially imposed. But there are various break categories in FAA core regulations, and 95,001 is actually one of those break points for certifications of different aircraft, so -- just as the 12,500-pound rule was tagged in some prudent way in the drafting of the legislation to a class of aircraft that had been regulated (in set and known ?) ways, this second category was grabbed from that template and that's how they came about, I understand, the designation there.

So we actually are entertaining in one of these cases a request from the industry to add the rule one pound, because it has inadvertently added an entire class of aircraft to an additional set of requirements. So we're looking at that issue as well.

REP. SANDLIN: Well, if it made common sense to change the 95,000 to 100,000, do you think that would be possible? And are we in a period of comment where those changes could be made, if that seemed to make sense?

MR. JACKSON: Certainly we would entertain the comments in the comment period in a formal way. We may need a statutory change to be able to come back, and we have a technical corrections bill which the administration is, I hope, poised to submit to the Congress for consideration, and we're looking at one of these issues in that technical correction.

REP. SANDLIN: Okay. Could you look at that, please, for me, and see if there would be a way to make that change because I think it could be a common sense change that wouldn't affect safety, but would make it more economical for our constituents.

One other question and then I'll be finished, Mr. Chairman.

I understand that the Department of Transportation has suggested that AIP funds can be made available to TSA to offset the cost of manpower and equipment.

And many of our small airports, of course, rely on these AIP funds for capital improvements. Are there going to be AIP funds to offset shortfalls in the TSA budget? And is there some way to assure that that would not impact our smaller airports on their capital improvements?

SEC. MINETA: First of all, the AIP funds will be available for local airports if they make that choice on their own. That's not something we're imposing. But we're saying, "Here are your AIP funds, and if you chose to use it for security purposes, you're free to do so, but that option also expires at the end of fiscal year '02.

Now, we --

REP. SANDLIN: Mr. Secretary, are you putting them in a position, though, of saying, "Okay, if I want to implement these security measures that should be implemented, I'm going to have to use my AIP funds to do that, but then I won't have money for my needed capital improvements"?

SEC. MINETA: Right. That's why we will have -- airports have secured under the supplemental bill $231 million for reimbursement to the airports for their security needs. And it's in the supplemental appropriations bill. Because again, as you've indicated, we don't want to -- because AIP funds are for capacity and safety purposes, that we don't want to divert AIP funds for security. But because of September 11th, the priority moved from capacity and delays after September 11th to security. So that's why we made this eligible for security purposes but only through September 30th of this year.

There are other sums that are available for local airports for security purposes, one of them being the $231 million. But I think as the economy rebounds, we've got to get prepared for capacity and delay issues, so we want to minimize the drawdown against the AIP funds and keep it for landing, for taxiways and runways.

REP. SANDLIN: Thank you. (I had some questions ?), but I see I'm out of time.

Thank you, Mr. Chairman.

REP. DUNCAN: All right. Thank you very much.

Mr. Moran.

REP. JERRY MORAN (R-KA): Mr. Chairman, thank you.

Mr. Secretary, Admiral, general aviation is an awfully important sector of our American economy, certainly true in my home state of Kansas. And we've had significant concerns about increasing rules, regulations and hurdles placed in front of our pilots, our aircraft owners. And I just wanted to explore with you for a moment -- I assume that you're willing to reassure me that the rules and regulations that we're going to experience are going to take into account the unique nature of general aviation and the tremendous hurdles that you could place in the general aviation industry's way. What kind of theory, attitude, approach does the department intend to take?

SEC. MINETA: Frankly, this has probably been one of the most vexing issues facing us. And recognizing that you come from the GA capital of the world. And my interest has been with GA for a long time. The problem that we're facing is that -- and I think we have to, all the way around, sort of mount a communications and public relations program about general aviation and its impact around the country, especially on smaller, local communities.

I have probably, as with Deputy Secretary Jackson, spent an inordinate amount of time trying to convince security people not within the department -- namely, the U.S. Secret Service, the National Security Council, sometimes the Homeland Security Office -- that some of the things that we are doing are restrictive and are impacting on local communities.

And so I would like to work with you in some way to open up and make sure that GA is not constricted in terms of how it operates. We recognize the value of GA and the importance of it. And maybe Michael can give some of the things that he's been doing in this area.

MR. JACKSON: We had a really good conversation, as the secretary said, last week with the heads of all of the major stakeholders in the GA world. And we did it for a couple of reasons. We brought some people from the intelligence community in for a specialized briefing, and not public safety-sensitive briefings, security-sensitive briefing, to explain to them some of the threat analysis that the intelligence community has done relative to the GA world. And honestly, we can talk about this later today.

There is a concern to make certain that we have effectively looked at the GA issues. But then we solicited their help in putting together some new mechanisms, and possibly even allowing for some classified briefings for select individuals to help us divide some policies. They have themselves agreed to get together and to put a top 10 list, a high priority list of things that they think that we can do to both make GA safer, more secure, and at the same time work with them in ways that will allow them to prosper and to thrive.

So we've committed to a process, we've looked at some of the particular threat analysis work together. And we have committed, with Jim's good work, set up an ongoing and routine way to vet things that we've thinking about in this world.

REP. JERRY MORAN: Mr. Secretary, your statement confirms at least my impression, perhaps understanding, that it has not been so much the Department of Transportation that has created unreasonable rules, regulations, it has been those involved in security. And I think what you're telling me is that those folks in security need to have more knowledge and awareness of how GA operates.

I have a particular circumstance I'd like to have -- if you would, Mr. Secretary, ask one of your staff to visit with me about a pilot and his crop duster and issues that he has encountered post- September the 11th, I'd appreciate your assistance.

SEC. MINETA: Crop dusters have probably presented us with the most problems across the country. And I will get back with you on that.

REP. JERRY MORAN: Well -- in addition to Kansas being the air capital of the world, we also have a significant amount of agriculture, and crop dusting is a significant component of that industry as well. And in both those areas I'd like to have a good working relationship with you, the department, and others involved in these issues.

SEC. MINETA: Absolutely.

REP. JERRY MORAN: Thank you, Mr. Secretary, for your time.

REP. DUNCAN: Ms. Tauscher?

REP. ELLEN O. TAUSCHER (D-CA): Thank you, Mr. Chairman.

Mr. Secretary, Mr. Deputy Secretary, Admiral Loy, Ms. Stefani, thank you for being here and for your staff that's right behind you that I know is working very hard. Let me thank you for all your hard work.

Not to mix metaphors, but it seems that while we're seeing the light, we should probably read the handwriting on the wall. And I think for quite a long time it's been obvious to me that that the dates for hiring all the federal screeners and for putting these EDS machines in were both arbitrary and unachievable, while at the same time necessary to do. So I feel like a good American woman telling you all that you have to continue doing hat you've been doing, which is multi-task. Unfortunately, you have to do it all.

Unfortunately, it's hard to do. And now, it looks like we're not going to give you the money. So, welcome to 21st century democracy.

But I think the most important thing we have to do, because we did have a 435-member frequent flyer focus group a few weeks ago that overwhelmingly voted to arm pilots, I think we have to concentrate on what is achievable, what we can deliver to the American public, what they will visibly see, what they will say, "Aha, that means something to me," and that is armoring the cockpit doors. I think we all know that we've gone to the Home Depot, bought a couple of screws, gotten a couple of bars, and that you can blow the door down with a deep breath.

If we do not armor those cockpit doors, we're going to find ourselves with an American public that doesn't have any real optical, measurable way of saying they're doing something. Because keep in mind, a lot of what we're doing is behind the door. We're changing logos on people's T-shirts. But they don't really see the difference to it.

Those cockpit doors save us the problem of trying to figure out how to arm pilots, which now sounds like it could cost us hundreds of millions of dollars, could cost time and energy. I think that what United Airlines is doing, by making it part of the cockpit equipment, by making sure that these are things that everybody has access to, but at the same time aren't floating through airports and going to the Outback Steakhouse during a crew rest in Cincinnati, these are things that we have to do.

Now, we have an April 9th date. We have, I think -- April 3rd? April 3rd date, that's even better. April 1st would be even better. But we have got to achieve this. This cannot be a date that we miss. Now, we've, I guess, rolled over the international carriers and gotten them to pick that date, too.

What can we do to ensure that you meet those dates? What can we do to make sure that the dates that we're not going to achieve, optimistically, in November and in January are still being vigorously worked on? And besides this money problem, which I know is huge, what can we do to make sure that we're achieving things that are going to add to the peace of mind, add to the kind of confidence the flying public has, and not have the airlines bleeding red ink all over the floor?

One of the things I'm concerned about is that airlines have to pay for or take out of rotation airplanes where they lose revenue in order to armorize these cockpit doors; they're going to be slow to do it. I would hope we would be creative and think about using some kind of bridge financing to provide the ability of getting these cockpit doors armorized so that we're not telling the American people once again, "Oh, but we couldn't afford to do it," or "We couldn't make them do it."

So, if you could address some of those things, Mr. Secretary, I would really appreciate it.

SEC. MINETA: First of all, let me stand corrected. It is April 9th. You are correct. But 2003 --

REP. TAUSCHER: April 3rd.

SEC. MINETA: Yeah. That is, the April 9th -- not 3rd -- April 9th date is something that we will hold to, without a doubt. As you've indicated, now we have gotten the international airlines that are flying into the United States also to adhere to the April 9th date in terms of converting their cockpits to hardened cockpits.

This is something that we recognized right from the beginning as something that had to be done. So, right after September 11th, we put out the rule about bolting the door. And that was accomplished -- I believe we put out the rule on something like the 25th of September, and by the 5th of November, there was something like 5,800 airplanes here in the country that had their doors hardened -- or at least put bars in them.

The next phase is the hardening of the whole cockpit, and I believe there are already two approved concepts. And so, now it's a question of getting those to be implemented. As you've indicated, airlines don't like to take planes out of revenue service. The extensiveness of these changes will probably say that they will do it only on a "D" check.

So that means they're going to be a long time in coming in some of these aircraft.

There is some money, I believe, that will be made available, but we will work on this issue and keep you all informed about what we're doing on this.

REP. TAUSCHER: Mr. Chairman?

REP. DUNCAN: Mr. Pascrell?

REP. BILL PASCRELL (D-NJ): Welcome, Mr. Secretary, Admiral.

Admiral, I have a great deal of admiration for what you've done at the Coast Guard. And we've been in several situations where I think you've gone beyond. And I know you're going to do a great job.

However -- (isolated snicker) -- I think that Mr. Magaw has been made out to be a scapegoat, because his job was to establish TSA, and he got a lot of mixed messages not only from the administration but from the Congress of the United States. And I think he tried to do his best. And I think you would admit to that. He's worked very closely with Secretary Mineta, and I have confidence in Secretary Mineta. I do not have confidence in the administration, because when everything's a priority, nothing's a priority. And every budget has consequences like every election has consequences.

So Mr. Secretary, my first question to you is, will the administration recommend that the House take the deadline extension language out of the homeland security bill?

SEC. MINETA: I don't believe that there's been a conclusion on that issue right now. If fact, --

STAFF: (Inaudible.)

SEC. MINETA: Yeah.

REP. PASCRELL: Mr. Secretary --

SEC. MINETA: I can't say that we have said in terms of --

REP. PASCRELL: Mr. Secretary, the administration is talking out of both sides of its mouth. I asked you a pretty simple question. I don't think it's very complex.

SEC. MINETA: And I'm saying that there is no answer yet right now.

REP. PASCRELL: We're voting on it this week. Within 45 minutes to an hour, we're going to be debating the supplemental. You talked extensively about the supplemental -- what it's lacking. I mean, when are these changes going to take place? Here we are, talking about rushing to pass homeland security, make it a department -- which came out of the Congress as a recommendation long before the president caught up. And then we're saying "slow down" in terms of the deadlines. Pretty complex. Pretty interesting.

If the language is included in the final product, Mr. Secretary, would the TSA then slow their efforts at all to implement a program of 100 percent explosive screening at all airports?

SEC. MINETA: As I said earlier, the whole issue of giving the restricted moneys that would be available to us -- how we apply those resources -- do we take down passenger screening a little bit, take down baggage screening a little bit? Or do we say, let's keep passenger screening at its full level and reduce baggage screening or vice versa?

Now those things we haven't determined. Deputy Secretary Jackson and I, given the outcome of the supplemental bill, are discussing right now how to deal with that issue.

And maybe I can ask him to think out loud with you, as well as we have, on how to do this. As I said earlier, there are two approaches on this thing, and the question about whether we do the baggage- screening side or the passenger-screening side, or cut both down, or just keep one at its full level and chop the other on down, we have not determined yet.

REP. PASCRELL: Mr. Secretary, for the -- (inaudible) -- it's so important that folks feel secure. We want to get them back on the planes, because otherwise, the airline industry will collapse all together. And in order to do that, we have to fulfill our obligations and our responsibilities on time. You've said that. You've said it many, many times.

I'd like to ask you very quickly, do you have the breakdown of how much the aviation industry, the federal government, and now passengers through fees, will be part of the aviation security plan, what is the percentage that each is paying right now? What are the airlines doing?

SEC. MINETA: Well, the airlines, when the Aviation Transportation Security Act was being put together, said that their cost in aviation security was anywhere from $700 million up to $1 billion. Now, just recently, as we were talking about the aviation community, the airlines, as to what they would be doing in -- what they had done in the past, said that it was really around $300 million. So we are now -- I believe we have asked the IG to conduct an audit of the airline as to how much were they investing in security --

REP. PASCRELL: Good question.

SEC. MINETA: -- because we're depending on that money coming in from them, because we had said to them at the time that the Aviation and Transportation Security Act was passed, that yes, they would continue to pay what they had been spending on security. And then, all of sudden, when we give them the bill, they said, "Hold it. It wasn't that much."

So again, the passenger fee is, of course, based on the $2.50 per segment and the $5.00 round trip. And that will generate, I believe, $400 million.

And then, in terms of the general funds going into it, then that would be --

REP. PASCRELL: So the passengers are actually -- with the numbers you just presented, Mr. Secretary, are putting more into the security than the airlines?

And I just -- I don't want to ask you a question, I want to make this point.

Ms. Stefani, this is excellent testimony to the point concerning the personnel. Many of them aren't showing up, they're just not showing up. And for us to hold Mr. Magaw responsible for people not showing up, and then a third of them aren't qualified, to me is ludicrous. And I know that we are in a place called Washington, D.C. where we look for scapegoats -- we'll blame everything on him, since he's gone, or her. I want to thank you for being very articulate in your testimony, and I -- (off mike) --

REP. DUNCAN: Ms. Berkley?

REP. SHELLEY BERKLEY (D-NV): Thank you, Mr. Chairman.

And welcome, Secretary Mineta. It's very good to see you. Safety of the flying public is of principal concern to all of us. I fly home every weekend to my district -- most of us do. So not only are we members of Congress, but we're members of the flying public.

You know my district very well, and you know McCarren Airport very well. And of course you know that 46 percent of the visitors that come to Las Vegas come through McCarren Airport. That's 46 percent of 36 million people. So McCarren is a lifeline to my community.

Not only do the travelers that come to Las Vegas have to feel safe, they have to be safe. And we also need to implement security measures that are both efficient and realistic as well.

An aviation consulting firm working with McCarren Airport has recently reported that the current proposal by TSA to screen all baggage by December 31st will add an additional three to four hours of waiting time at McCarren Airport. This creates additional security concerns, such as long lines at the airport, and will also have the potential of devastating the economy, the tourist destinations throughout the United States, particularly in communities, like Las Vegas, that depend so much on our tourism trade.

Now I have a series of questions. What I would like, if you don't mind, is to ask them and have you respond in writing, in the interests of time. And I must say, with all candor, that the reason that I'm asking these questions at this hearing is because the TSA has been totally non-responsive to the people at McCarren, the people on the ground. They're making suggestions. They're asking. They're inquiring of TSA. They get little if anything back. So I'd like to ask the questions on their behalf that -- questions that they've been asking for quite a while.

Current security measures have caused significant lines and delays at the terminals. Airport officials have raised concerns that this could make our airports terrorist targets as well. At any given time at McCarren Airport, there is a thousand people waiting in line to go through the security checkpoints. This becomes a very target- rich environment, having a thousand people concentrated in one area at the airport. And McCarren Airport officials would like to know if the Department of Transportation is looking into ways and what we're doing to make the airports more secure. And I know there's concrete barriers, and cars can't linger in any location anymore, but what are we really doing to keep our airports safe, in addition to keeping our airplanes safe as well?

The second question that I'd like answered is, McCarren Airport is ranked second in the country for numbers of passengers going through ticketing and security checkpoints. When the second round of security funding is distributed, will the number of passengers going through the doors be accounted for? Because in the funding -- in the formula mechanism that currently exists, McCarren is getting shortchanged by considerable millions of dollars, because we have so many more passengers going through McCarren than are accounted for under the current formula.

Officials at McCarren Airport are also concerned that the airport will not be able to have all of the explosive-detection devices needed in place by December 31st, by the deadline. As you know, because of the volume at McCarren Airport -- and if it's 46 percent of 36 million people, we're talking about 18 million people, with an average of 1.8 bags that need to be checked -- if -- because of this incredible volume -- and we need 16 of these machines; each one is the size of a pickup truck -- there's no place in the current configuration of McCarren Airport to put these large machines. They would like to -- they're going to have to make modifications to the terminal to house the devices, and what they ideally would like is to build a baggage facility to accommodate the large number of baggage at McCarren Airport.

My question is, how is TSA and the department working with our airport officials at McCarren?

I mean, if there truly is -- if it truly is impossible to meet the deadline and we have to get 16 of these devices in and there's no place to put them, what are we going to do? And has anybody been thinking about what it is that we're going to do? And if they have to build facilities or reconfigure the terminal, will that time be accounted for?

And the last question that I have. It's my understanding that at the Olympics, when the bags were checked by ETD machines, the bags were swiped on the outside, and if explosives were detected, the bags were then to be opened and checked thoroughly. Right now, the ETD proposal would be a 40-40-20 check. And I'm wondering why, if it worked so well at the Olympics doing it the way we did it, why are we doing it in a different manner which is going to add additional time and problems at the individual airports?

And again if I could welcome the admiral and suggest to him that he has his people contacting the people on the ground, that do a pretty outstanding job. No one's consulting them. So what's happening up above is, decisions are being made in the vacuum, and the people who know what they're doing and work at the airports on a day- to-day basis and run the airports aren't being consulted at all.

SEC. MINETA: And I will get these answers back to you for the record.

REP. BERKLEY: I would appreciate that. Thanks.

REP. DUNCAN: Mr. Honda?

REP. MICHAEL HONDA (D-CA): Thank you, Mr. Chairman.

I want to welcome and thank and appreciate the witnesses today.

And I want to join my colleagues in their concerns about the security. And I guess during today's testimony, I'm a little bit disturbed to hear that it seems like the congressional dynamics that's going on right now in terms of appropriations is hindering the realization of the Aviation and Transportation Security Act.

One of the portions of that act that I was particularly interested in (seeing were ?) -- Mr. Matheson and myself had fought to include in the act was the 20 pilot programs that we'd like to see across the country, 20 pilot programs that would look at technologies, the utilization technology in creating a secure system, a secure airport, and also guaranteeing that the passenger cabin and the cockpit would be safe from terrorist activities.

The mayor of San Jose and myself formed a blue-ribbon task force comprised of CEOs from Silicon Valley who are experts in technology. And we have some community members and law enforcement folks that got together and in a hundred days came back with a report that we submitted to the department.

My question is hopefully that the pilot programs will continue to be moved forward and that there will be sufficient funding for that. I believe the budget for FY '02 had $10 million in it. And hopefully, that's being dedicated to the realization of the pilot programs. There's 23 pilot programs that were mentioned in terms of exemptions from federalization. There's another pilot program in terms of looking at the security of the airports, in terms of validating the workforce, validating the workplace, validating and securing the cybersystem and communications systems while assuring the civil liberties of folks, and then also whose target is to make sure that the movement of people (to ?) the airport is efficient, is respectful. And that was one of our four goals.

I was hoping that you might be able to enlighten us as to the progress of the pilot programs and assure us that -- or reconfirm, or reaffirm that we're going to move forward on that piece of legislation.

MR. JACKSON: Yes, sir, congressman. We have put out a solicitation from TSA to all of the airports in America, notifying them of the funds that we have available for R&D deployments, for various biometric tools, security methods that can be tested at the nation's airports. And we are in the process of reviewing applications from airports for participation in this program. And we see that we would do it in a series of waves, testing, exchange of information, and then testing new technologies. So we have a fairly free hand in this arena to structure the money that we have available to us and to test the things that we think have the highest value. We're getting pretty good feedback from airports that want to participate in these programs, so we anticipate a pretty robust pool of airports that will be able to participate with us.

REP. HONDA: Do you have any dates that we can look at in order to benchmark our progress and, in discussing the format that -- we're not looking at only one technology or current technology --

MR. JACKSON: Right.

REP. HONDA: -- we're also looking at a process for involving new and emergent technologies as we move forward, because we don't want any one technology to be ossified in any one place.

MR. JACKSON: Right. We're looking for the full range of things that have common sense applications in airports. So it's -- for example, on the biometric front, it's not just one biometric technology that we're open to evaluating, but multiple technologies. So there's no going-in limitation on the types of technologies that can be tested with the program.

REP. HONDA: And the time lines? Do you have any idea?

MR. JACKSON: We want to do a handful of some this year, and also the rest of them next year so that we can take it in two chunks. That was the initial -- that was the initial thinking for the program.

REP. HONDA: And then the appropriation process: do you see that interfering with the -- with the deployment and the roll-out of this -- of these pilot programs?

MR. JACKSON: I believe we were actually given some earmarks -- unrequested, but other earmarks for additional pilot work of particular R&D technologies. One of the problems that we've had historically is that sometimes the Congress has earmarked technologies which we don't believe merit additional investment. We have an earmark for one such technology in the explosive detection arena right now that we have put a considerable amount of money in but don't see as a short-term solution to problems. So we're trying to work with Congress and triage the limited amount of money that we can have and apply it against technologies that'll give us the best bang for the buck immediately.

REP. HONDA: Yeah. I see the outcome of these pilot programs being able to address a lot of the issues that we've heard today and a lot of the issues that are -- that comes along with security.

MR. JACKSON: Yes.

REP. HONDA: To the chair, if I may have two quick questions on --

REP. BOOZMAN: I'm sorry, Mr. Honda, there -- we're actually supposed to be out of here at 1:10.

REP. HONDA: Okay. Can I just ask it, and get a written response?

One was --

REP. BOOZMAN: Yes, sir. Very quickly.

REP. HONDA: One was in terms of the pilot programs that were exempt. Employees, if they're not eligible for citizenship or are competent, can there be exchanges of personnel between different airports? Second is, the assessment centers: have we thought about utilizing real-time video interviews using the video technology? And I'll -- I'll --

MR. JACKSON: I'd be happy to get back with formal answers for you, sir.

REP. BOOZMAN: Mr. Menendez?

REP. ROBERT MENENDEZ (D-NJ): Thank you, Mr. Chairman.

Mr. Secretary, admiral, to our other witnesses, thank you for hanging in there, the stamina.

Mr. Secretary, I know what you said today, but I want to re-visit what you said a week ago before the Homeland Security Select Committee, of which I am a member. You said, and I quote:

"I know some have expressed concerns that moving TSA will slow or interfere with the agency's ability to meet its congressionally mandated deadlines. The concern, while understandable, is without merit. We are going to meet the deadline that Congress gave us with respect to TSA. And when the day comes for TSA to transfer to the new department, TSA will be ready. And being ready means meeting every deadline asked of it before that day, period."

And then I asked you a question, because you were so resolute in your statement and seemed so fixed and equivocal.

And I asked you, "You're telling this committee that TSA will meet all of its congressionally mandated deadlines under the act, without reservation; yes or no?" And your answer was yes.

Now, at the time, while it was not a budget hearing, you did not suggest that your statement to the committee was in any way conditioned upon what the Appropriations Committee did or what anybody else in the Congress did. You made a clear and unequivocal statement that TSA would meet all its deadlines.

And I'd like to refer -- then you fired the head of TSA two days after you appeared before the committee, and a day before we took our vote last Friday. Last Friday the Appropriations Committee did mark up. And I took the opportunity -- the three hours that I've been sitting here -- to speak to the appropriators both on the majority and the minority side, and here's what they say in response to the statements that you've given this committee, which suggests that TSA cannot now meet its deadlines because of what Congress is going to do, versus what I believe the administration has not done.

As it relates to the $550 million off the top, the appropriators said TSA simply couldn't justify the request. As to the $480 million in contingency funds, they advise that this is the normal way of doing things for non-requested monies, and that the president may designate an emergency and use the funding, if he so needs it. So the money is ultimately there. The $445 million in earmarks, the TSA request was for people; the money was earmarked for explosive detection devices and procurement and to modify the airports. And as it relates to the limiting of to 45,000 employees, which you suggest is 20,000 less, the committee said, well, you have only 10 weeks left in the year 2002 and you couldn't possibly hire all 65,000 employees within those 10 weeks. And as to the report language that you suggest is restrictive, the best that they could come up with is that TSA has to report on a website waiting times in airports.

Now, if you take the fact that part of this money was to repay FEMA already for money that was used, which is a little over a billion dollars; if you take the fact that OMB, the Office of Management and Budget, said that the level of funding at $3.85 billion was sufficient to meet your responsibilities, it seems to me that taking the committee's action -- the appropriators' action is a propitious excuse not to meet what this administration has said time and time again will be a successful completion of all the congressionally mandated deadlines.

So could you please tell me and this committee how you reconcile your unequivocal comments of a week ago, last Tuesday before the Homeland Security Committee? Why you didn't raise any concerns about funding and any other possible obstacles that would have led you not to make such an unequivocal statement? What's your response to the appropriators, in the context of what they're saying, because they have a different view, and certainly their view is not one that gives rise for the excuse for TSA not to meet its obligations.

And lastly, you said, in response to Ms. Brown, that you want to have TSA look like America. I'd like to ask you, specifically, what steps are you taking to ensure that that in fact becomes the reality.

So if you'd answer those questions, I'd appreciate it.

SEC. MINETA: First of all, let me take that first -- or the last issue on the hiring. I don't recall the numbers exactly, but I think it's in the area of about 2,400 people that we've hired so far, let's say as of mid-July, for the work force.

And of the work force, I believe that -- well, of the 2,200 who have been hired so far for screeners, 477 are women; 453 are African- American; and 130 Hispanic. So, that would be 4, 5, 6 -- let's say about 670 of the 2,200 are minority and women. And we've been doing this -- what I've been doing also is asking our director of small business and disadvantaged business units to work with the TSA to make sure that in granting -- or in putting out contracts, that we have subcontractors that are minority and disadvantaged business units. And so, we're making, I think, a good, strong effort in that area. It's something that I'm interested in and have pursued all my life in terms of opportunities, and will continue to do so.

Now, in terms of why -- or in terms of the appropriations and why I don't feel the sufficiency of what's in this supplemental will take us through this fiscal year. We sent a letter to the Appropriations Committee back in June outlining what our needs would be. And again, indicating what our needs are to fulfill the mandates under ATSA.

In terms of what are we going to be doing on adhering to the November 19th and December 31st dates, that was part of the discussion we had here. My belief is that we still can meet those deadlines. The question is, do we take the money out of the passenger screening side or -- in order to -- given the financial resources that we have, or do we take it out of the baggage screening side? In any event, it means that there will be longer lines and inconveniences to the traveling public.

But it just seems to me that with the mandate that's against us, we'll go ahead and meet the deadline. And if it means that we can't process people through the lines as quickly, or if we say, no, let's make sure the passenger screening operates 100 percent and to the snuff, then we're going to have to take the money and the resources out of the baggage screening side. But, again, I still feel that we will be meeting the 19th of December date.

I remember right after the Aviation Transportation Security Act passed.

And I think it was about two weeks after the legislation was signed into law. And I was asked by the press, "Are you going to be able to meet the requirements of this law?" And all I could think of at that time was, "How do we handle 3 million bags a day with 146 EDS machines all across the country?" My response was, "We won't be able to make it." And then everybody on the Hill and everybody else said, "Look at that! Not only does a law get passed, and Mineta's already saying he's not going to adhere to the law."

Well, we found out also in reading the legislation that we could meet that requirement five ways. So then we decided, okay, we could do it canine, we could do it bag match, we could do it manual. We employed all five methods in order to meet that requirement under ATSA. So as far as I'm concerned, we're going to meet these dates, we're going to do the baggage screening, but it may slow the process down. And we're going to meet the passenger-screening requirements. But to the extent that we don't have the full funds to do everything, then it's going to slow down. To me, that's just the reality of the situation.

REP. MENENDEZ: Well, Mr. Chairman, thank you. I just want to say in closing, I haven't heard you dispute the appropriators' responses to your testimony today. And what I have heard you say is once again that you'll meet the deadlines, and that's exactly why we believe that there's no need to have a change in the law. If you can say here again before this committee that under the laws that exist, you may not have every explosive-detection device deployed, but you can meet it under the law, then there is no reason to be changing deadlines when the law can be met. And I would hope to hear that from the administration.

SEC. MINETA: I've said nothing about changing the deadlines. I've said nothing about changing the deadlines.

REP. BOOZMAN: Thank you, Mr. Menendez.

I want to thank the panel. We appreciate your testimony, appreciate your openness, appreciate all that you're doing, working very hard on behalf of the agency.

I ask unanimous consent that after the subcommittee recesses this morning, you reconvene in executive session because disclosure of matters to be considered during that session would endanger national security and compromise sensitive law enforcement information. Without objection, it is so ordered. (Sounds gavel.)

END

LOAD-DATE: July 24, 2002




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