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S. HRG. 110–1116 

NOMINATIONS TO THE DEPARTMENT 

OF COMMERCE, FEDERAL MARITIME 

COMMISSION, AND THE METROPOLITAN 

WASHINGTON AIRPORTS AUTHORITY 

HEARING 

BEFORE THE

COMMITTEE ON COMMERCE, 

SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE 

ONE HUNDRED TENTH CONGRESS 

FIRST SESSION 

OCTOBER 23, 2007 

Printed for the use of the Committee on Commerce, Science, and Transportation 

( 

(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED TENTH CONGRESS 

FIRST SESSION 

DANIEL K. INOUYE, Hawaii, Chairman 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

THOMAS R. CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

TED STEVENS, Alaska, Vice Chairman 

JOHN MCCAIN, Arizona 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

GORDON H. SMITH, Oregon 

JOHN ENSIGN, Nevada 

JOHN E. SUNUNU, New Hampshire 

JIM DEMINT, South Carolina 

DAVID VITTER, Louisiana 

JOHN THUNE, South Dakota 

MARGARET L. CUMMISKY, Democratic Staff Director and Chief Counsel 

LILA HARPER HELMS, Democratic Deputy Staff Director and Policy Director 

CHRISTINE D. KURTH, Republican Staff Director and General Counsel 

PAUL NAGLE, Republican Chief Counsel 

(III) 

C O N T E N T S 

Page 

Hearing held on October 23, 2007 .......................................................................... 1 

Statement of Senator Inouye .................................................................................. 1 

Prepared statement .......................................................................................... 2 

Statement of Senator Nelson .................................................................................. 3 

Statement of Senator Stevens ................................................................................ 3 

Prepared statement .......................................................................................... 3 

WITNESSES

Anderson, Hon. A. Paul, Renominated to be Commissioner and ChairmanDesignate, Federal Maritime Commission ......................................................... 35 

Prepared statement .......................................................................................... 36 

Biographical information ................................................................................. 37 

Brown, Hon. Robert Clarke, Renominated to be a Member, Board of Directors, 

Metropolitan Washington Airports Authority (MWAA) .................................... 6 

Prepared statement .......................................................................................... 7 

Biographical information ................................................................................. 8 

Letter, dated October 29, 2007, to Hon. Daniel K. Inouye and Hon. 

Ted Stevens ................................................................................................... 15 

Brown, Hon. Sherrod, U.S. Senator from Ohio ..................................................... 4 

Kress, Carl B., Nominated to be Commissioner, Federal Maritime Commission ........................................................................................................................ 27

Prepared statement .......................................................................................... 28 

Biographical information ................................................................................. 29 

Voinovich, Hon. George V., U.S. Senator from Ohio ............................................. 4 

Zinser, Todd J., Nominated to be Inspector General, U.S. Department of 

Commerce ............................................................................................................. 18 

Prepared statement .......................................................................................... 20 

Biographical information ................................................................................. 21 

APPENDIX

Response to written question submitted to Carl B. Kress by: 

Hon. Barbara Boxer ......................................................................................... 51 

Hon. Daniel K. Inouye ...................................................................................... 49 

(1) 

NOMINATIONS TO THE DEPARTMENT OF 

COMMERCE, FEDERAL MARITIME 

COMMISSION, AND THE METROPOLITAN 

WASHINGTON AIRPORTS AUTHORITY 

TUESDAY, OCTOBER 23, 2007 

U.S. SENATE, 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, 

Washington, DC. 

The Committee met, pursuant to notice, at 2:30 p.m. in room 

SR–253, Russell Senate Office Building, Hon. Daniel K. Inouye, 

Chairman of the Committee, presiding. 

OPENING STATEMENT OF HON. DANIEL K. INOUYE, 

U.S. SENATOR FROM HAWAII 

The CHAIRMAN. Public service is a noble calling and we thank 

those nominees who are willing to spend their careers in government, as well as those who lend their expertise, garnered from a 

successful career in the private sector, to public enterprises. 

The Inspector General for the Department of Commerce is 

charged with the oversight of a wide array of programs, including 

conservation and management of ocean resources, trade promotion, 

and enforcement and spectrum policy. It is vital that the Inspector 

General remain above politics. The independence of the Department of Commerce Inspector General and all the Inspectors General must be without doubt. The Congress and this Committee will 

be depending on this office to both ferret out waste, fraud, and 

abuse, and to develop policy and programs across all of the Departments’ diverse portfolio of programs. 

Mr. Zinser, this job will require significant commitment, dedication, and a constant pursuit of the facts. I hope your own career 

in the Department of Transportation will serve you well and set an 

example for an office that has been in turmoil for some time. 

The Federal Maritime Commission has been tasked with a very 

important mission of ensuring that U.S. international trade is open 

to all nations on a fair and equitable basis. As U.S. global trade 

negotiations continue to expand, we will become even more dependent on maritime commerce for ‘‘just-in-time’’ delivery of consumer 

goods and components. 

The FMC must remain diligent in monitoring the shipping practices of our trading partners, to ensure fairness, and to protect 

American consumers from collusion and anticompetitive behavior. 

And so, we welcome the testimony of Messrs. Paul Anderson and 

Carl Kress, who have been nominated to serve as Commissioners. 

2 

Mr. Robert Clarke Brown is a current Member of the Board of 

Directors of the Metropolitan Washington Airports Authority 

(MWAA). As such, he is one of primary individuals responsible for 

the day-to-day operations, finances, and effectiveness of two of the 

major airports serving this region. Mr. Brown has been reappointed 

to the MWAA Board, and can share with the Committee and the 

Board, his experience of the authority as MWAA prepares to meet 

the challenges that face the Washington region’s airports in the 

coming years. 

Today, we will examine these four nominees credentials and 

views, and we thank you again for your commitment to public service. And should you be confirmed, we look forward to working with 

each of you. 

And may I now recognize the Vice Chairman. 

[The prepared statement of Senator Inouye follows:] 

PREPARED STATEMENT OF HON. DANIEL K. INOUYE, U.S. SENATOR FROM HAWAII

Public service is a noble calling, and we thank those nominees who are willing 

to spend their careers in government as well as those who lend their expertise garnered from a successful career in the private sector to public enterprises. 

The Inspector General for the Department of Commerce is charged with the oversight of a wide array of programs, including conservation and management of ocean 

resources, trade promotion and enforcement, and spectrum policy. 

It is vital that the Inspector General remain above politics. The independence of 

the Department of Commerce Inspector General, and all Inspectors General, must 

be without doubt. Congress and this Committee will be depending on this office to 

both ferret out waste, fraud, and abuse, and to develop policy and programs across 

all of the Department’s diverse portfolio of programs. 

Mr. Zinser, this job will require significant commitment, dedication, and a constant pursuit of the facts. I hope your long career at the Department of Transportation’s Office of Inspector General will serve you well in setting the example at an 

office that has been in turmoil for some time. 

The Federal Maritime Commission (FMC) has been tasked with the very important mission of ensuring that U.S. international trade is open to all nations on fair 

and equitable terms. 

As U.S. global trade continues to expand, we will become even more dependent 

on maritime commerce for ‘‘just-in-time’’ delivery of consumer goods and manufacturing components. The FMC must remain diligent in monitoring the shipping practices of our trading partners to ensure fairness and to protect American consumers 

from collusion and anti-competitive behavior. We welcome the testimony of Mr. Paul 

Anderson, and Mr. Carl Kress, who have been nominated to serve as Commissioners. 

Recently, issues have been brought to my attention concerning the management 

and operations of the FMC. In addition to post-hearing questions, the Committee 

intends to hold an oversight hearing on the FMC in the near future. I am hopeful 

the sitting Commissioners will make themselves available to testify before the Committee at that time. 

Mr. Robert Clarke Brown is a current Member of the Board of Directors of the 

Metropolitan Washington Airports Authority (MWAA). As such, he is one of the primary individuals responsible for the day-to-day operations, finances, and effectiveness of two of the major airports serving this region. Mr. Brown is being reappointed to the MWAA Board and can share with the Committee and the Board 

his experience at the Authority as MWAA prepares to meet the challenges that face 

the Washington region’s airports in the coming years. 

Today we will examine these four nominees’ credentials and views. Thank you 

again for your commitment to public service. Should you be confirmed, I look forward to working with each of you. 

3 

STATEMENT OF HON. TED STEVENS, 

U.S. SENATOR FROM ALASKA 

Senator STEVENS. Thank you very much, Mr. Chairman. I’d ask 

my statement be printed in the record after yours, and state to Mr. 

Brown that I served on that Board at one time. I know it’s a chore, 

so we welcome you and welcome your decision to serve for a second 

term. 

Thank you, Mr. Chairman. 

[The prepared statement of Senator Stevens follows:] 

PREPARED STATEMENT OF HON. TED STEVENS, U.S. SENATOR FROM ALASKA

Mr. Chairman, thank you for holding today’s hearing. These individuals have 

been selected to fulfill vital roles within their organizations and I thank them for 

their willingness to serve. 

The Metropolitan Washington Airports Authority has a critical responsibility to 

the millions of travelers who pass through Washington Dulles International and 

Ronald Reagan Washington National Airports each year, and it is essential that 

these two airports be run efficiently. I was once a Member of this Board so I understand the challenges it faces. Mr. Brown, you have already served a number of years 

on the Board and I appreciate your continued service. 

The Inspector General’s office is charged with conducting independent and objective investigations within a department and it is crucial that this position be filled 

by an individual who remains honest and impartial throughout the investigative 

and auditing process. I look forward to hearing Mr. Zinser’s vision for the IG’s office 

at the Department of Commerce. 

The maritime industry is vital to U.S. commerce. Protecting ocean borne transportation and the security of our ports is of the utmost importance. I welcome our two 

nominees for the Federal Maritime Commission and look forward to hearing from 

them. 

The CHAIRMAN. Senator Nelson? 

STATEMENT OF HON. BILL NELSON, 

U.S. SENATOR FROM FLORIDA 

Senator BILL NELSON. Mr. Chairman, it’s my privilege, also, to 

be here on behalf of Paul Anderson, who is currently serving as a 

Commissioner on the Federal Maritime Commission, and he has 

been reappointed by the President for another term as Commissioner, and designated as the Chairman. And, he has a long experience in the maritime sector, having been with one of the national 

marine industries. It’s Hvide Marine, it’s a maritime support and 

transportation business. It’s located in Florida. 

And then, he further has been with one of our major importers, 

JM Family Enterprises, a diversified automobile business 

headquartered in Florida. He’s had experience in government at all 

levels, local, state, and Federal. And he’s been on the Commission 

now for 4 years, so he has tremendous experience there. His experience goes back to your former colleague, Senator Hawkins, where 

he was a Special Assistant to her. 

And so, because of his community involvement, his extensive 

public service to the community and to our state, and now in the 

national arena, having been a Member for 4 years, I’m here to support and speak for his renomination. 

The CHAIRMAN. Thank you very much, Senator. 

And now, it’s my high privilege and honor to present two of our 

most distinguished Senators from the State of Ohio. The first, the 

4 

Honorable Sherrod Brown and the Honorable George Voinovich. 

Welcome gentlemen. 

May I recognize Senator Voinovich first. 

STATEMENT OF HON. GEORGE V. VOINOVICH, 

U.S. SENATOR FROM OHIO 

Senator VOINOVICH. I thank you, Mr. Chairman. 

I want to thank you for allowing me to speak today on behalf of 

Robert Clarke Brown who the President has nominated for reappointment to the Metropolitan Washington Airports Authority. 

He has had a diverse career, spanning both the public and private sectors. He’s a former investment banker and a U.S. Department of Transportation capital markets advisor. His association 

with the Airports Authority dates back a decade and, in that time, 

he has chaired both the Finance Committee and the Strategic Development Committee. 

Mr. Chairman, as the now Ranking Member of the Oversight of 

Government Management, the Federal workforce, and the District 

of Columbia Subcommittee of the Homeland Security and Governmental Affairs Committee, we have worked in the last 8 years to 

try to make sure that we have the right people with the right 

knowledge and skills at the right place at the right time. And we 

are fortunate that Mr. Brown is continuing his interest in this position. 

And I must say, that it’s not surprising, because we all know he 

shares a connection with our fellow colleague, Senator Sherrod 

Brown, the junior Senator from Ohio. They’re brothers. 

And even though Senator Brown and I wear different party labels, we work together to do what we think is in the best interest 

of Ohio and in the best interest of our country. And I’m honored 

that Sherrod has asked me to participate in this confirmation. I 

think that Mr. Brown’s 10 years of dedicated service to the Airports 

Authority speak for itself. And I really look forward to this Committee’s swift action on his nomination. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you very much, Senator. 

Senator Brown? 

STATEMENT OF HON. SHERROD BROWN, 

U.S. SENATOR FROM OHIO 

Senator BROWN. Thank you, Mr. Chairman, Vice Chairman Stevens, and Senator Nelson. Thank you. 

And then special thanks to Senator Voinovich. Senator Voinovich, as you may know, is the first Ohioan in 40 years to have 

served both as Governor and as Senator. And the other Ohioan 

that did that some 40 plus years ago, also served as Mayor of 

Cleveland, Governor of Ohio, and United States Senator in that 

order, as Senator Voinovich has. And he was Honorable Frank J. 

Lausche, a Democrat, who was a mentor of sorts, I think, for Senator Voinovich. So I thank him for that. 

And Mr. Chairman, I thank you for your consideration. I’m 

thrilled to be here on behalf of my brother. I actually appeared in 

front of this Committee when I was in the House of Representatives, a decade ago, at Bob, my brother’s first confirmation. And, 

5 

it was a day that I showed up a bit rumpled and tired and 

unshaven. The House had been in session all night, and I came 

over here at 9:30 in the morning when Senator McCain was 

chairing the Committee. 

And I remember saying at that time, as a House member, that 

I apologize for the way I look, but that the House of Representatives obviously worked a good deal harder than the Senate. And a 

decade of public service since then, and the wisdom I’ve accrued 

from that decade of service, makes me realize I was wrong and that 

the Senate actually works significantly harder than the House. So, 

I appreciate that. 

[Laughter.] 

Senator BROWN. I want to first introduce my family members 

who are here. First Bob, obviously. My mother Emily, who lives in 

Mansfield, Ohio. My brother Charlie, his wife Ann, Bob’s wife, 

Katherine, who is over here. And my niece, Marcia Grace. And 

Marcia Grace, 10 years ago when I was here, was actually here in 

a stroller. So she is now a young adult. So, we’re all thrilled to 

have her here. 

I think I’m well-situated, briefly Mr. Chairman, I’m well-situated 

to speak to this nominee’s qualifications. I don’t know how many 

classes in high school I took, where the teacher told me how smart 

my older brother was and how well he had done. It has gotten a 

little old, frankly, but with the passage of 40 years, I think I can 

start to get over it. 

As—and my mother, who is here, as I said, taught me that boasting, taught Bob and I that boasting is impolite, but nothing prevents me from bragging about my brother. He has been an outstanding public servant. He has done outstanding work, both in the 

private sector and in volunteer, for all intents and purposes, volunteer jobs like the Airports Authority. He excelled academically in 

high school, college, law school, graduate school. He has excelled as 

a professional. He has excelled in both the public sector and the 

private sector. 

Senator Voinovich talked about many of his qualifications. He 

now is the Treasurer of one America’s great universities, Case 

Western Reserve University in Cleveland. And it’s my pleasure to 

ask this Committee to consider, with fairness, as I know you will, 

Mr. Chairman—my brother’s nomination, Robert Clarke Brown. 

Thank you very much. 

The CHAIRMAN. Thank you very much, Senator Brown. 

It’s always moving to have a brother speak highly of his brother. 

He didn’t beat you up, did he? 

[Laughter.] 

Senator BROWN. Yes, he did, he did. Certain family secrets remain family secrets. 

[Laughter.] 

The CHAIRMAN. In honor of the introduction, may I call upon, out 

of order, Mr. Robert Clarke Brown, Member of the Board of Directors-Designate, Metropolitan Washington Airports Authority? 

Welcome, Mr. Brown. 

6 

STATEMENT OF HON. ROBERT CLARKE BROWN, 

RENOMINATED TO BE A MEMBER, BOARD OF DIRECTORS, 

METROPOLITAN WASHINGTON AIRPORTS AUTHORITY (MWAA) 

Mr. BROWN. Thank you, Mr. Chairman. 

I’m Robert Clarke Brown of Ohio. I appreciate this opportunity 

to appear before you, in support of my nomination by the President 

for reappointment to the Metropolitan Washington Airports Authority, the operator of the two principle airports serving our Nation’s capitol. 

And Senator Stevens, I very much appreciate your being here as 

well today, and recognize very much your many years of contributions to our Nation’s transportation system, including, as you mentioned, this—this Authority, which as, really I think, one of 

Congress’s great creations and contributions to our regional transportation system. 

Mr. Chairman, I—I want to first express my thanks to my brother Sherrod, for being here today on my behalf. I will note for the 

record, Mr. Chairman, as you probably gathered from his remarks, 

he is my baby brother. But I also want to say that I don’t think 

there are any big brothers anywhere in America that are prouder 

of their little brother than I am of Sherrod and all he’s accomplished, and all he has done for the people of Ohio and the service 

he has rendered to our Nation and will render as a United States 

Senator. 

And Senator Voinovich as well, I want to say how much I appreciate his also being here for me today. He has been a public servant 

in Ohio for decades and, as both—as was mentioned, as Mayor, as 

Governor, and now as our senior Senator. And, as a Buckeye, I 

want to thank him for many years of wonderful service to my home 

state. 

You heard from Sherrod, that I am accompanied today by many 

members of my family. It’s a—it is a bit of a family affair. My 

daughter Marcia, is a—is a fifth grader. She’s playing hooky today, 

but I assure you, Mr. Chairman, she’ll be back hitting the books 

tonight when we get home and preparing for her lessons tomorrow. 

I am privileged to have been associated with the Airports Authority in various capacities for more than a decade, a period in our 

Nation’s history which has been both exciting for the Authority’s 

airports and challenging for all of U.S. aviation. 

At the beginning of that time, Washington National Airport was 

the larger and more important of the Authority’s two airports. But 

it now has been far surpassed by Washington Dulles International 

Airport, and the Airports Authority has moved beyond its original 

role as solely an airports operator, emerging as an important player in the Washington region’s multi-modal transportation system, 

something I have a little more to say about in a moment. 

Dulles Airport was established half a century ago, by a visionary 

Federal Government, which anticipated the Capitol region’s future 

demand for air transportation and sited an airport which would 

have ample capacity to grow as that demand materialized. The 

past decade has seen that vision realized, as Dulles has become 

both an important domestic carrier, with frequent service by both 

traditional and low-cost carriers, and a major international gateVerDate Nov 24 2008 06:50 Apr 11, 2012 Jkt 073668 PO 00000 Frm 00010 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\73668.TXT SCOM1 PsN: JACKIE
7 

way, serving destinations in Asia, Africa, Europe, and South America. 

To support that growth in air service, the Authority undertook, 

at the turn of the century, a multi-billion dollar expansion of Dulles. Though that expansion was slowed in the years immediately 

after September 11, 2001, we are now well into it. When completed, 

Dulles will have an additional air-side and land-side capacity, as 

well as an underground, automated people mover system, all of 

which will bring greater, more convenient air service to the Capitol 

region’s ever increasing numbers of air travelers. 

Two years ago, the Commonwealth of Virginia was considering a 

number of proposals to privatize the Dulles Toll Road, a road built 

and operated by Virginia, but lying in the Authority’s right-of-way. 

The Authority proposed that, in lieu of privatization, it take over 

operation of the toll road and use the excess revenue from the toll 

road to extend the regional Metrorail system to Dulles Airport. I 

am sure I speak for all of my colleagues on the Airports Authority 

Board, Mr. Chairman, when I tell you that I am proud the Governor of Virginia placed his confidence in the Authority by accepting our proposal, and asking us, the Airports Authority, to take 

over responsibility for building Metrorail to Dulles. 

The magnitude of this undertaking is substantial. The Dulles rail 

project will be in upwards of $5 billion, one of the largest investments in the Washington metropolitan region’s transportation system during the next decade. 

Complimenting existing ground access to Dulles with the rail 

line, is a critically important service improvement for our passengers and for the thousands of people who work at Dulles Airport. Increasingly, the world’s leading international airports offer 

their customers airport access through rail service. And the Authority believes that Dulles, the international airport for the Capitol of the United States of America, should join their ranks. 

With the completion of the Dulles rail line, both of the 

Authority’s airports will have convenient rail service, accessible directly from the airport terminals. We know that particularly in the 

Washington area market, customers want rail service to the airport. The percentage of National Airport’s customers who access 

the airport by rail is the highest of any U.S. airport. 

Mr. Chairman, I have a written statement I’d like to submit for 

the record. That concludes my opening remarks, and I look forward 

to responding to your questions. 

[The prepared statement and biographical information of Mr. 

Brown follow:] 

PREPARED STATEMENT OF HON. ROBERT CLARKE BROWN, RENOMINATED TO BE A

MEMBER, BOARD OF DIRECTORS, METROPOLITAN WASHINGTON AIRPORTS AUTHORITY (MWAA) 

Mr. Chairman and members of the Committee: 

I am Robert Clarke Brown of Ohio. I appreciate this opportunity to appear before 

you in support of my nomination by the President for re-appointment to the Metropolitan Washington Airports Authority. 

I am privileged to have been associated with the Airports Authority in various capacities for more than a decade, a period in our Nation’s history which has been 

both exciting for the Authority’s airports and challenging for all of U.S. aviation. At 

the beginning of that time, Washington National Airport was the larger of the 

8 

Authority’s two airports; but it now has been far surpassed by Washington Dulles 

International Airport. And the Airports Authority has moved beyond its original role 

as solely an airports operator, emerging as an important player in the Washington 

region’s multi-modal transportation system. 

Dulles Airport was established half a century ago by a visionary Federal Government which anticipated the capital region’s future demand for air transportation 

and sited an airport which would have ample capacity to grow as that demand materialized. The past decade has seen that vision realized, as Dulles has become both 

an important domestic airport, with frequent service by both traditional and lowcost carriers, and a major international gateway, serving destinations in Asia, Africa, Europe and South America. To support that growth in air service, the Authority 

undertook at the turn of the century a multi-billion dollar expansion of Dulles. 

Though that expansion was slowed in the years immediately after September 11, 

2001, we are now well into it. When completed, Dulles will have additional air-side 

and land-side capacity, as well as an underground automated people mover system, 

all of which will bring greater, more convenient air service to the region’s ever increasing numbers of air travelers. 

Two years ago, the Commonwealth of Virginia was considering a number of proposals to privatize the Dulles Toll Road, a road built and operated by Virginia, but 

lying in the Authority’s right-of-way. The Authority proposed that, in lieu of privatization, it take over operation of the Toll Road and use the excess revenue from the 

Toll Road to extend the regional Metrorail system to Dulles Airport. I am sure I 

speak for all my colleagues on the Airports Authority Board when I tell you that 

I am proud the Governor of Virginia placed his confidence in the Authority by accepting our proposal and asking us to take over responsibility for building Metrorail 

to Dulles. The magnitude of this undertaking is substantial: the Dulles rail project 

will be, at upwards of $5 billion, one of the largest investments in the Washington 

metropolitan region’s transportation system during the next decade. 

Complementing existing ground access to Dulles with a rail line is a critically important service improvement for our passengers, and for the thousands of people 

who work at Dulles airport. Increasingly, the world’s leading international airports 

offer their customers airport access through rail service, and the Authority believes 

that Dulles, the international airport for the capital of the United States, should 

join their ranks. With the completion of the Dulles rail line, both of the Authority’s 

airports will have convenient rail service, accessible directly from the airport terminals. We know that, particularly in the Washington area market, customers want 

rail service to the airport: the percentage of Washington National Airport’s passengers who access the airport by rail is the highest of any U.S. airport. 

During my tenure at the Airports Authority, I have chaired both the Finance 

Committee and the Strategic Development Committee. I have been involved vocationally in transportation during most of my professional career, in both the public 

and private sectors. I believe my experience on the Board and my professional background will enable me to contribute meaningfully to the work of the Authority as 

it assumes an ever more important role in the Washington region’s and the Nation’s 

transportation system. 

I respectfully ask for your favorable consideration of my nomination and will be 

pleased to respond to your questions. 

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Robert Clarke Brown. 

2. Position to which nominated: Member, Board of Directors, Metropolitan Washington Airports Authority (term expiring Nov. 22, 2011). 

3. Date of Nomination: June 21, 2007. 

4. Address (List current place of residence and office addresses): 

Residence: Information not released to the public. 

Office: Case Western Reserve University, 10900 Euclid Avenue, Cleveland, OH 

44106. 

5. Date and Place of Birth: Dec. 17, 1947; Mansfield, OH. 

6. Provide the name, position, and place of employment for your spouse (if married) and the names and ages of your children (including stepchildren and children 

by a previous marriage). 

Catherine B. Scallen, Associate Professor, Department of Art History, Case 

Western Reserve University, Cleveland, OH (spouse); Marcia Grace Brown, 10 

(daughter). 

9 

7. List all college and graduate degrees. Provide year and school attended. 

Princeton University, B.S.E., 1969. 

Harvard Law School, J.D., 1974. 

Georgetown University Law Center, LL.M., 1975. 

8. List all post-undergraduate employment, and highlight all management-level 

jobs held and any non-managerial jobs that relate to the position for which you are 

nominated. 

Full-time, permanent employment: 

United States Navy, 1969–1971. 

Fellow, Institute for Public Interest Representation, 1974–1975. 

Counsel, House Committee on Interstate and Foreign Commerce, 1975–1976. 

Jimmy Carter Presidential Campaign, 1976. 

Carter-Mondale Transition Team, 1976–1977. 

Special Assistant, U.S. Department of Transportation, 1977–1979. 

Senior Counsel, House Committee on Government Operations, 1979. 

Attorney, Jones, Day, Reavis & Pogue, 1980–1983. 

Assistant Director, Ohio Department of Transportation, 1983–1987. 

Senior Vice President, Lehman Brothers, 1987–1994. 

Executive Vice President, Envirotest Systems Corp., 1994–1995. 

Managing Director, Key Capital Markets, 1996–1999. 

Capital Markets Advisor, U.S. Department of Transportation, 1999–2007. 

Treasurer, Case Western Reserve University, 2007–present. 

Summer jobs: 

1971: Department of Housing & Urban Development. 

1972: Ohio Attorney General. 

1973: Reavis, Pogue, Neal & Rose (law firm). 

Jobs which have given me particularly valuable experience for service on the 

MWAA Board include: 

1. my civilian government service—two tours at U.S. DOT and a stint at Ohio 

DOT, and 

2. my investment banking experience, particularly that at Lehman Brothers, 

where I specialized in transportation finance. 

9. Attach a copy of your re ́sume ́. A copy is attached. 

10. List any advisory, consultative, honorary, or other part-time service or positions with Federal, State, or local governments, other than those listed above, within the last 5 years. 

Member, Board of Directors, Metropolitan Washington Airports Authority (since 

2000). 

Financial Advisor, Ashtabula County, OH (2002–2004). 

11. List all positions held as an officer, director, trustee, partner, proprietor, 

agent, representative, or consultant of any corporation, company, firm, partnership, 

or other business, enterprise, educational, or other institution within the last 5 

years. 

Financial Advisor, American University (2002–2003). 

Trustee, University Circle Incorporated (2004–present). 

12. Please list each membership you have had during the past 10 years or currently hold with any civic, social, charitable, educational, political, professional, fraternal, benevolent or religious organization, private club, or other membership organization. Include dates of membership and any positions you have held with any organization. Please note whether any such club or organization restricts membership 

on the basis of sex, race, color, religion, national origin, age, or handicap. 

Member, St. Paul’s Episcopal Church, Cleveland Heights, OH (since 2002) (service on Stewardship Committee). 

Member, Fairmount Presbyterian Church, Cleveland Heights, OH (19972002) 

(service as Trustee). 

10 

Executive Committee, Municipal Securities Division, The Bond Market Association (1996–1999). 

D.C. Bar and Ohio Bar since 1975 (both inactive). 

Former member, Princeton Club of New York (resigned approx. 1998). 

To the best of my knowledge, no organization or club of which I have been a member restricts membership on the basis of sex, race, color, religion, national origin, 

age, or handicap. 

13. Have you ever been a candidate for and/or held a public office (elected, nonelected, or appointed)? If so, indicate whether any campaign has any outstanding 

debt, the amount, and whether you are personally liable for that debt. 

I have never been a candidate for elected public office. 

For full-time, paid, appointed positions I have held, at both the state and Federal 

levels, please see my response to question A.8. 

As noted in my response to question A.10., I have also been appointed to an unpaid, part-time position as a Member of the Board of Directors of the Metropolitan 

Washington Airports Authority. 

14. Itemize all political contributions to any individual, campaign organization, 

political party, political action committee, or similar entity of $500 or more for the 

past 10 years. Also list all offices you have held with, and services rendered to, a 

state or national political party or election committee during the same period. 

Political contributions: 

Sherrod Brown for Senate: $1,950 (total of multiple contributions in 2006). 

Sherrod Brown for Senate: $2,100 (2005). 

John Kerry for President: $2,000 (total of multiple contributions in 2004). 

Kerry-Edwards General Election Legal and Accounting Compliance Fund: 

$1,000 (2004). 

Democratic Congressional Campaign Committee: $1,000 (2004). 

Bill Bradley for President: $51,000 (1999). 

Multiple contributions to KeyCorp PAC totaling more than $500 (1996–1999). 

Offices held/services rendered: No offices held in a state or national political party 

or election committee; services rendered as a volunteer to various Democratic candidates during the past 10 years. 

15. List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals, and any other special recognition for outstanding service or 

achievements. 

Fellow, Institute for Public Interest Representation (post-graduate fellowship). 

16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relevant to the position for which you have been nominated. Do not attach copies of 

these publications unless otherwise instructed. 

Publications: 

‘‘A More Humane Military’’ (book review of Pawns, by Peter Barnes), The Progressive, July 1972. 

‘‘Where Does It Hurt, General,’’ The New Republic, September 30, 1972. 

‘‘Standing Up to the CIA,’’ The Progressive, July 1973. 

Various articles, principally news stories, in Harvard Law Record (law school 

weekly newspaper), 1972–1973. 

‘‘State Action Analysis of Tax Expenditures,’’ 11 Harvard Civil Rights—Civil 

Liberties Law Review 97 (1976). 

‘‘Don’t Hike Federal Gas Tax,’’ The Plain Dealer (Cleveland), January 14, 1989. 

‘‘Playing Catch,’’ The Plain Dealer (Cleveland), June 21, 1989. 

‘‘Designing Credits for New Toll Roads,’’ published in proceedings of International Bridge, Tunnel & Turnpike Association 1990 Workshop, May 1, 1990. 

‘‘Recent Developments in the Municipal Bond Market and the Impact on Toll 

Financing,’’ published in proceedings of International Bridge, Tunnel & Turnpike Association 1992 Joint Meeting of Administration, Finance and Risk Management Committees, June 8, 1992. 

‘‘Faster Turnpike Speed Damaging Move’’, Crain’s Cleveland Business, September 6, 2004. 

11 

‘‘University Circle Workers Are Losers in Bottom-Line Decision-Making,’’ The 

Plain Dealer (Cleveland), January 7, 2005. 

Speeches: 

International Air-Rail Organisation, September 2005: Dulles rail project. 

Moody’s Investors Services Infrastructure Conference, October 2005: airport 

capital planning. 

DEPFA conference on privatization, October 2006. 

During the past two decades, I have on numerous occasions participated in professional conferences in the course of which I have made informal (i.e., no prepared 

text) presentations or spoken as a member or moderator of a panel on the subject 

of infrastructure finance. 

17. Please identify each instance in which you have testified orally or in writing 

before Congress in a governmental or nongovernmental capacity and specify the 

date and subject matter of each testimony. 

(a) testimony as a member of a panel of investment bankers on the subject of 

infrastructure finance before a House committee (date was sometime in the late 

1980s; committee was probably House committee on transportation & infrastructure). 

(b) first confirmation hearing for appointment to MWAA Board, June 29, 1995. 

(c) second confirmation hearing for appointment to MWAA Board, September 

15, 1998. 

18. Given the current mission, major programs, and major operational objectives 

of the department/agency to which you have been nominated, what in your background or employment experience do you believe affirmatively qualifies you for appointment to the position for which you have been nominated, and why do you wish 

to serve in that position? 

With the Authority embarking on the Dulles rail project, this is a particularly 

critical time in its history. There is no more important transportation project in the 

Washington region today than Dulles rail. I believe my background in surface transportation and in transportation finance will enable me to make a useful contribution 

to the Board as it works to complete this project. 

19. What do you believe are your responsibilities, if confirmed, to ensure that the 

department/agency has proper management and accounting controls, and what experience do you have in managing a large organization? 

The Board of Directors sets policy. It appoints the Authority’s top management 

and directs them to manage the operations of the Authority in accordance with that 

policy. The Board should exercise continuing and diligent oversight to ensure that 

management is carrying out its responsibilities in accordance with Board policy. 

My service as a Member of the Board has given me valuable experience to continue to carry out the responsibilities of a Director. 

20. What do you believe to be the top three challenges facing the department/ 

agency, and why? 

The three most significant challenges currently facing MWAA are: 

1. financing and constructing the Dulles rail project; 

2. completing the major construction program underway at Washington Dulles 

International Airport; 

3. strengthening international air service at Washington Dulles. 

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. Please include information related to retirement accounts. 

I have no deferred compensation agreements. 

I am entitled to receive, upon reaching retirement age, a small pension from Lehman Brothers based on my participation in the firm’s defined benefit pension plan 

during the 7 years I was employed there. 

I am entitled to receive, upon reaching retirement age, a pension from the Federal 

Government based on my participation in the Federal pension plan during my several tours of civilian service and my time in the U.S. Navy. 

I am entitled to receive, upon reaching retirement age, a pension from the State 

of Ohio based on my participation in the state’s pension plan during my service 

there. 

12 

I own all my other retirement accounts (IRAs, etc.), and none of them involves 

‘‘continuing dealings’’ with any former associate, client or customer. 

2. Do you have any commitments or agreements, formal or informal, to maintain 

employment, affiliation, or practice with any business, association or other organization during your appointment? If so, please explain. 

Members of the Board of Directors of the Metropolitan Washington Airports Authority serve without compensation. I expect to continue to be employed full-time 

as Treasurer of Case Western Reserve University during my service as a Member 

of the Board. 

3. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated: None. 

4. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated: None. 

5. Describe any activity during the past 10 years in which you have been engaged 

for the purpose of directly or indirectly influencing the passage, defeat, or modification of any legislation or affecting the administration and execution of law or public 

policy: None. 

6. Explain how you resolve any potential conflict of interest, including any that 

may be disclosed by your responses to the above items. 

If I believe I have a conflict, I will recuse myself from any Board deliberations 

or action related to the matter in question. 

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? If so, please explain. 

No. (Please also refer to response to question C.6.) 

2. Have you even been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority of any Federal, State, county, or municipal entity, other than for a minor traffic offense? If so, please explain. No. 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, 

please explain. 

Neither I nor any business of which I have been an officer has been a party in 

any administrative agency proceeding or civil litigation. Please see response to question C.6. in connection with a proceeding of the National Association of Securities 

Dealers, a self-regulatory organization. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? If so, please explain. No. 

5. Have you ever been accused, formally or informally, of sexual harassment or 

discrimination on the basis of sex, race, religion, or any other basis? If so, please 

explain. No. 

6. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination. 

Key Capital Markets, a former employer, was sanctioned in 1997 as a result of 

two small political contributions I made prior to the commencement of my employment there. 

In 1994 and 1995 I made two small ($50 and $100) political contributions to a 

member of the Cleveland City Council who was a long-time personal friend. At the 

time I made the contributions, I was living in New York, was not employed in the 

securities industry, and had not yet had any discussions with Key Capital Markets 

about employment. Subsequently, in 1996, I became an employee of Key Capital 

Markets in the Public Finance Department and thus became a Municipal Finance 

Professional as that term is defined by the Municipal Securities Rulemaking Board. 

Rule G–37 of the Municipal Securities Rulemaking Board prohibits a broker-dealer from engaging in securities work for a municipal issuer if any Municipal Finance 

Professional employed by that broker-dealer has, during the preceding 2 years, 

made a political contribution to an official of that issuer for whom he could not vote. 

In 1994 and 1995 I was a resident of New York, and thus I could not vote for the 

Cleveland Councilman when I made the contributions to him. Because I had made 

political contributions to a Cleveland official for whom I could not vote and subsequently became employed by Key Capital Markets as a Municipal Finance Professional less than 2 years after the contributions were made, Key Capital Markets 

was barred until 1997 (two years after the 1995 contribution was made) from doing 

13 

underwriting work for the City of Cleveland. Because the firm had played a minor 

role in a Cleveland underwriting before either the firm or I was aware my conduct 

had been a violation, the National Association of Securities Dealers assessed a small 

fine, in the amount of the revenue the firm had generated through its work on the 

underwriting (approximately $10,000), against the firm. 

I was neither fined nor sanctioned. 

D. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by Congressional committees? I will. 

2. Will you ensure that your department/agency does whatever it can to protect 

Congressional witnesses and whistleblowers from reprisal for their testimony and 

disclosures? I will. 

3. Will you cooperate in providing the Committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters 

of interest to the Committee? I will. 

4. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

RE ́SUME ́ OF ROBERT CLARKE BROWN

Employment 

Case Western Reserve University, Vice President and Treasurer, 2007–present. 

Manage University’s balance sheet 

In consultation with investment bankers and financial advisors, oversee longterm debt portfolio, including derivative exposure. 

Manage short-term investment portfolio and cash management; arrange University bank relationships. 

Brownlea Advisors, Principal, 2000–present. 

Created financial advisory firm to serve public agencies and nonprofit organizations. 

Advise on the development of major projects and design attendant financings. 

Advised Ashtabula County on development and financing of Geneva State Park 

Lodge. 

Advised American University on $45 million financing. 

Prior Employment 

U.S. Department of Transportation, Capital Markets Advisor, 1999–2007. 

Assisted in establishment of new Federal credit assistance program under 

which U.S. DOT supports financing of large, nationally significant surface 

transportation projects. 

Working with investment bankers, private project developers, insurers, rating 

agencies, and private attorneys, represent U.S. DOT in negotiations of transportation project financings employing Federal loans and Federal guarantees authorized by the program. 

Structure public-private partnerships which promote private sector development 

while protecting the public interest. 

Key Capital Markets, Inc., Managing Director, Public Finance, 1996–1999. 

Led establishment of the Public Finance department within KeyCorp’s new investment banking subsidiary. 

Recruited and hired bankers to staff six offices nationwide. 

Managed 25 professionals plus support staff. 

Increased market share in all target markets and tripled department revenues 

in 3 years. 

Executed financings for both government agencies and nonprofit organizations. 

Envirotest Systems Corp., Executive Vice President, Marketing and Government 

Relations, 1994–1995. 

Developed competitive strategies for marketing vehicle emissions testing services to state governments. 

Created testing plans tailored to fit political and demographic requirements of 

specific markets. 

14 

Lehman Brothers, Senior Vice President, 1987–1994. 

Developed finance plans for transportation projects of state and local government agencies. 

Presented finance plans to credit rating agencies, bond insurers, investors, and 

public constituencies. 

Executed over $2 billion in capital markets financings on behalf of senior-managed clients. 

Ohio Department of Transportation, Assistant Director, 1983–1987. 

Managed ODOT’s public transit, aviation, rail and water transportation programs. 

Led formation of new ODOT Division of Water Transportation and designed 

first state program to support Ohio water transportation. 

Created first state grant program for transit. 

Supervised 70 employees; coordinated related activities of 12 district offices 

throughout the state. 

Led ODOT’s work with the Ohio Turnpike in development of a long-range strategic plan for the Turnpike. 

Jones, Day, Reavis & Pogue, Attorney, 1980–1983. 

Private practice of law in areas of municipal bonds, government regulation, real 

estate and general corporate (Cleveland office). 

U.S. House of Representatives, Senior Counsel, Committee on Government Operations, Subcommittee on Environment, Energy and Natural Resources, 1979. 

Led oversight hearings and investigations of Nuclear Regulatory Commission. 

Staff author of Committee report on nuclear power plant emergency planning. 

U.S. Department of Transportation, Special Assistant to the Assistant Secretary 

for Policy and International Affairs, 1977–1979. 

U.S. House of Representatives, Counsel, Interstate and Foreign Commerce Committee, Subcommittee on Oversight and Investigations, 1975–1976. 

Institute for Public Interest Representation, Fellow and staff attorney, 1974–1975. 

Conducted advocacy litigation in Federal courts and before Federal agencies. 

Taught and supervised third-year law students in clinical legal program. 

United States Navy, Lt. (j.g.), 1969–1971. 

Engineering aide to Admiral H.G. Rickover. 

Oversaw testing and materials programs of government contractors engaged in 

development, production and operation of nuclear power plants of Navy ships. 

Professional Activities 

Board of Directors, University Circle Incorporated, Cleveland, Ohio (2004– 

present). 

Board of Directors, Metropolitan Washington Airports Auth. (1996–1997; 2000– 

present) (appointed to the Board by President Clinton). 

Formerly, Chair, Finance and Audit Committees; 

Currently, Chair, Strategic Development Committee. 

Executive Committee, Municipal Securities Division, The Bond Market Association (1996–1999). 

Chairman, Maglev Study Advisory Committee (1996–1997). 

(appointed by the U.S. Secretary of Transportation). 

Board of Directors, American Public Transit Association (1993–1996). 

Committee on Finance, Transportation Research Board. 

Member: Ohio Bar, District of Columbia Bar. 

Education 

Princeton University, B.S.E., 1969; Major: Aeronautical Engineering. 

Graduated with High Honors. 

15 

Academic honors: Phi Beta Kappa, Sigma Xi (scientific research), Tau Beta Pi 

(engineering). 

Senior thesis on research of combustion processes of metals published by NASA. 

Harvard Law School, J.D., 1974. 

Editor-in-Chief, Harvard Civil Rights—Civil Liberties Law Review. 

Georgetown University Law Center, LL.M., 1975. 

Field of concentration: administrative law and regulation. 

The CHAIRMAN. Your statement will be made part of the record, 

sir. I have a question. I don’t expect an answer at this moment, but 

will you provide me with a written report? 

Mr. BROWN. Yes, sir. 

The CHAIRMAN. Recently, a report was rendered, suggesting that 

over 60 percent of all flights in the United States are delayed, especially along the Northeast Corridor, including Washington. If you 

do have any views or suggestions or proposals that would alleviate 

this problem, please share it with us. 

Mr. BROWN. Mr. Chairman, I will prepare a written response to 

that. 

[The information previously referred to follows:] 

ROBERT CLARKE BROWN

Shaker Heights, OH, October 29, 2007 

Hon. DANIEL K. INOUYE, 

Chairman, 

Hon. TED STEVENS, 

Vice Chairman, 

Senate Commerce, Science, and Transportation Committee, 

Washington, DC. 

Dear Mr. Chairman and Mr. Vice Chairman: 

I appreciated the opportunity to appear before the Committee on October 23 on 

my re-nomination to the Metropolitan Washington Airports Authority (MWAA). 

During the hearing, the Chairman asked that I share my views on the reasons 

and possible remedies for the significant delays that domestic airline passengers 

have experienced this year. I am pleased to do so. Please note that the views below 

are entirely mine, and are not to be taken as views or positions of MWAA. 

This year’s air travel delays have largely been related to weather and air traffic 

capacity. However, they have been particularly serious along the East Coast because 

the FAA’s air traffic control system in this region, in the best of weather conditions, 

is now operating at or very near its capacity. The introduction of severe weather 

into an already constrained air traffic system exacerbates delays as the system’s capacity is further constrained by adverse weather. Thus, delays initially caused by 

weather eventually result in further delays caused by an air traffic system that is 

incapable of handling the traffic consequences of poor weather. 

Neither government nor the airline industry can control the occurrence of adverse 

weather. f However, both are capable of reducing the travel delays that airline passengers are increasingly experiencing. And, with domestic airline travel projected to 

increase two to three times in the next 20 years, it is clear that extraordinary actions are necessary. 

For the air traffic control system, major infrastructure advancements must be undertaken. These are now underway, in the form of the NextGen Air Transportation 

System, which will move today’s air traffic system from its radar-based, analog technology to a satellite-based, digital communication system. However, full implementation of NextGen advancements is 15 to 20 years away, and no system of funding 

its implementation has been identified. In the meantime, efforts must continue to 

improve the capacity of the current air traffic system through, for instance, more 

precise navigational arrivals and departures, the redesign or expansion of air space 

around airports, better weather forecasting techniques, and improved traffic flow 

modeling and management tools. 

Air traffic delays, of course, can be caused by factors other than adverse weather 

and today’s air traffic control system. These other factors also can exacerbate delays 

16 

caused by weather and inadequate air traffic system capacity. A significant factor 

involves airports whose gate capacity, during peak periods, falls short of demand, 

forcing aircraft to wait until a gate is available. This, of course, means more delay 

and more frustration for passengers who have already experienced delays en route. 

Airports can address their role in air travel delay by ensuring that their gate and 

ground capacity is sufficient to handle anticipated air traffic demand. Washington 

Dulles International Airport is doing just this. The airport is in the middle of a $4 

billion capital expansion program. It is building a new fourth runway and has plans, 

which have completed the requisite environmental review, to add a fifth. MWAA is 

also constructing at Dulles an underground automated people mover system, additional terminal space, new fuel tanks and lines, baggage system improvements, expanded roadways and other infrastructure enhancements. In the years ahead, Dulles Airport should have adequate capacity to meet projected air traffic demand. 

I note that, since the 1960s, Washington National Airport has been subject to a 

‘‘high density rule’’ that limits the number of flights that carriers may schedule. 

While not uniformly embraced, the rule has been an effective tool to prevent delays 

at the airport, as well as to protect the surrounding community from aircraft noise. 

The rule became necessary because National lacked the capacity to handle the level 

of flights sought by airlines. However, amendments to National’s high density rule 

have added flights to the airport over the years which, by increasing passenger load, 

have begun to strain its facilities (e.g., its parking garages and space for security 

facilities). Nonetheless, the limitations placed on the number of permitted flights at 

National have served to moderate flight and passenger delays at the airport. 

The FAA has done a credible job of increasing the capacity of the air traffic system over the years, and its NextGen program, when fully matured, will greatly expand the system’s capacity. Until then, however, the significant problem of air travel delay will increase, and must be addressed by a combination of enhancements to 

the current air traffic system and expansion of airports’ capacity to efficiently handle incoming and outgoing traffic. 

I appreciate the opportunity to present these views. I would be pleased to address 

any other questions you or other committee members may have. 

Sincerely, 

ROBERT CLARKE BROWN. 

Mr. BROWN. Let me just say briefly, that there are many causes 

to the—to the delay of, as you say, the majority of flights now being 

delayed during this past summer, which was very busy in the airline business. 

There are many causes of those delays. Airport capacity is one. 

The air traffic control system is another. And of course, weather is 

always a problem, especially in the summer time. 

With respect to the first, we are, I mentioned, we do have a large 

building program at Washington Dulles. We think that will go part 

way to addressing the problem of delay for flights out of Dulles. 

National is pretty well built out. It is also capacity restrained, constrained, as you know, through the slots and perimeter rule. So, it 

is—it is not as much of a problem there, although we still have 

delay issues there, more because of the air traffic control system. 

But I will respond in more detail in writing. 

Thank you. 

The CHAIRMAN. As you know, I travel a lot. Last Sunday, this 

past Sunday, I flew to Alabama and got back yesterday afternoon. 

And, my bag did not follow me. But it finally caught up with me. 

You’re not responsible for that. 

[Laughter.] 

The CHAIRMAN. I just wanted you to know that I share the frustration of many of our travelers. So, I look forward to your report, 

sir. 

Mr. BROWN. Thank you, Mr. Chairman. 

The CHAIRMAN. Senator Stevens? 

Senator STEVENS. Thank you. 

17 

Mr. Brown, what is the Board of Directors’ relationship to TSA? 

Is there any communication between them and you with regard to 

policies at the airport? 

Mr. BROWN. Senator Stevens, we—we try to have a close relationship with TSA. There’s no question, it is a—it is a partnership, 

a dynamic partnership. TSA does make policies. I think it’s fair to 

say that the various airports around the country don’t always agree 

with, but we do work continually with TSA, in trying to solve the 

problems that we are mutually addressing. We certainly have 

asked TSA to provide additional resources at our airports, to support the security requirements of a large number of passengers 

going through the security checkpoints. 

But I’m sure, in fairness to TSA, they are hearing similar complaints from many other airports around the country. And, I’m sure 

part of the problem is, they themselves are resource-constrained, 

and are making decisions about how those resources get allocated. 

But, we certainly do work as closely with them as we can. It is, 

frankly, always a little bit of, I think it’s fair to say, a little bit lobbying. Each airport is doing that, with the TSA trying to get a little 

bit larger commitment of resources to their needs, because passengers, at the end of the day, going through our airport, don’t 

really differentiate between TSA and the airport operator, as to 

who is responsible if they miss their flight, because they were held 

up trying to get through a security checkpoint. 

So, it’s very much in our interest. We want the experience of our 

airport customers, our passengers, to be a positive one, a pleasant 

one. We do everything we can to try to work with TSA to help 

make that happen. 

Senator STEVENS. Well, the administration of the airports doesn’t 

pay anything toward those security problems, do they? 

Mr. BROWN. We do not pay for those. We have space that we rent 

to TSA. TSA actually does pay us rent for the space that they use 

at the airport. 

Senator STEVENS. I’ve been told that there are some real problems, in terms of keeping people there at these two airports. You 

just have two, don’t you? 

Mr. BROWN. Yes. 

Senator STEVENS. And particularly, turnover in screeners and 

people like that. Does the Board look into problems like that? 

Mr. BROWN. I have not—I don’t know too much about that, Senator. I’m happy to look into that further and find out from our airport operators if, in fact, their sense of the TSA workforce, is that 

the turnover’s been very heavy. I’m not familiar with that situation 

at all, but happy to respond in some detail in writing to you after 

the hearing. 

Senator STEVENS. Well, back in my days on the Board, we were 

told that management operation on a daily basis wasn’t our responsibility. Does the Board get into it at all now? 

Mr. BROWN. Well, I think—I think on some of those kinds of 

operational issues, we—we do tend to feel that management really 

handles them. But I think when it gets to be a problem that very 

much affects the overall experience of our customers, of our passengers, and I think when there’s a legislative inquiry, I think it’s 

appropriate for the Board to explore it further. Yes, Senator. 

18 

Senator STEVENS. Do you think Congress should give the Boards 

of Directors that control airports, such as these two, further powers, with regard to TSA? 

Mr. BROWN. Well, you know, that is—I’m sure that’s a difficult 

question that you all wrestle with. We certainly, as an airport operator, would like to feel we had some authority with TSA. As you 

say, we really don’t pay them for the service that they provide. 

They don’t really feel that they are obligated to respond to us. I 

think they try to be good partners, but I think we would like to 

have some authority, with respect to the way TSA screeners are deployed, what times of the day, how many lanes are open, and so 

on and so forth. And I think the Authority would—I’m speaking 

only for myself, the Board has not discussed this—but I think you 

would find some support among directors of the Airports Authority 

to give us additional powers to have some oversight on the way 

TSA deploys its resources. Yes. 

Senator STEVENS. Thank you very much and thanks for your 

willingness to serve another term. It’s not an easy task. I’m sure 

it’s a burden coming in from Ohio to deal with this. So, we thank 

you for what you’re doing. We appreciate it very much. 

Mr. BROWN. Thank you very much, Senator. I very much enjoyed 

my service on this Board. It has been a privilege. 

The CHAIRMAN. Mr. Brown, I thank you very much, and congratulations. 

Mr. BROWN. Thank you, Mr. Chairman. 

The CHAIRMAN. Our next witness is the Inspector General-Designate, United States Department of Commerce, Mr. Todd J. 

Zinser. 

Mr. Zinser, welcome, sir. 

STATEMENT OF TODD J. ZINSER, NOMINATED TO BE 

INSPECTOR GENERAL, U.S. DEPARTMENT OF COMMERCE 

Mr. ZINSER. Thank you, Mr. Chairman, Vice Chairman Stevens. 

I prepared a written statement and would like to have it submitted 

for the record if I could. 

The CHAIRMAN. Without objection, so ordered. 

Mr. ZINSER. I’d like to summarize that statement briefly. 

I’m honored to appear before you today as the President’s nominee to be Inspector General of the Department of Commerce. I have 

been privileged to testify before this Committee and its Subcommittees as Acting Inspector General of the Department of Transportation, and to have contributed to the important oversight work of 

this Committee. I would like to thank Secretary Gutie ́rrez for his 

expression of confidence and the Committee, for considering my 

nomination expeditiously. 

Mr. Chairman, as you and your staff know, public service is an 

honor. For the past 24 years, I have been honored to be a career 

civil servant. I began as an investigator with the Department of 

Labor in 1983, transferred to the Department of Transportation Office of Inspector General 16 years ago, in 1991, and for the past 7 

years, I have served as Deputy Inspector General, including 8 

months as Acting Inspector General. 

It is my firm belief, that throughout my Federal service, I have 

demonstrated integrity, objectivity, commitment to good governVerDate Nov 24 2008 06:50 Apr 11, 2012 Jkt 073668 PO 00000 Frm 00022 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\73668.TXT SCOM1 PsN: JACKIE
19 

ment, and leadership, characteristics essential to being an effective 

Inspector General. The Department of Commerce, like the other 

major departments of government, requires an objective, independent Inspector General, who will make fair but tough, factbased calls and report to the Secretary and the Congress fully and 

forthrightly. 

The Inspector General should work constructively with the Department and stakeholders, as a force for positive change and all 

parties should constantly strive for a relationship built upon mutual respect and trust. However, the Inspector General is under an 

absolute obligation to report to the Congress about significant problems. 

I know that Secretary Gutie ́rrez shares this view, and I am confident that, if confirmed, the Office of Inspector General staff and 

I, would have a good and open working relationship with the Secretary and the Congress. 

My experience at the Department of Transportation OIG in 

working with the Secretary and Congress, certainly this very Committee, has been entirely positive. This experience has taught me 

how to conduct investigations and audits in a credible and constructive way. It has helped me appreciate the importance of providing policymakers with current, relevant, factual, and objective 

information. 

I have learned many other lessons, but would like to stress three 

in particular. First, that the hallmarks of independence, objectivity, 

and nonpartisanship strengthen an IG’s credibility, especially when 

the findings of an audit or investigation run counter to what may 

have been expected. Second, the importance of Congress in providing oversight and making progress and leading reform. And 

third, that government leaders want to get ahead of problems and 

expect to hear from their Inspectors General and GAO about risks 

and vulnerabilities and their best recommendations for solutions. 

If confirmed, I am committed to applying these lessons and my 

experience to the audits and investigations performed by the Office 

of Inspector General at the Department of Commerce. As you 

noted, Mr. Chairman, in your oversight hearing for the Department 

in August, the business of the Department of Commerce is complex 

and demanding. Its mission includes conserving and managing the 

oceans, taking care of the census, providing economic opportunities, 

predicting the weather, and promoting commerce and innovation 

and good stewardship of the resources that contribute to our economic prosperity. 

Secretary Gutie ́rrez, similarly, emphasized that the roots of the 

Department are firmly grounded in promoting commerce and economic growth, and exercising stewardship of our oceans and waterways. 

I want to assure the Committee that, if confirmed, those issues 

will have the highest priority for the Office of Inspector General as 

well. 

Mr. Chairman, that concludes my statement. I would be pleased 

to respond to any questions you or Vice Chairman Stevens may 

have. 

[The prepared statement and biographical information of Mr. 

Zinser follow:] 

20 

PREPARED STATEMENT OF TODD J. ZINSER, NOMINATED TO BE INSPECTOR GENERAL, U.S. DEPARTMENT OF COMMERCE

Chairman Inouye, Vice Chairman Stevens and Members of the Committee: 

I am honored to appear before you today as President Bush’s nominee to be Inspector General of the Department of Commerce. I have been privileged to testify 

before this Committee and its Subcommittees as Acting Inspector General of the Department of Transportation (DOT), and to have contributed to the Committee’s vital 

oversight work while leading the talented staff at the DOT Office of Inspector General (OIG). 

The Inspector General position in a large Federal agency such as the Department 

of Commerce is a very important and challenging one. I would like to thank Secretary Gutie ́rrez for his expression of confidence and the Committee for considering 

my nomination expeditiously. I would also like to express my appreciation to Inspector General Calvin Scovel, and former Inspector General Kenneth Mead, for their 

support over the past 10 years at DOT. I would also like to extend my thanks to 

the staff at the DOT Office of Inspector General, with whom I have had the privilege of serving for the past 16 years. Finally, but not least, I want to thank my children, Ken, Philipp, and Corinne, for their love and support, especially at this time 

as I seek the Committee’s approval for becoming Inspector General at the Department of Commerce. 

For the past 24 years, I have been a career civil servant. I began as an investigator with the Department of Labor in 1983 and transferred to the Department of 

Transportation, Office of Inspector General, in 1991 where, for the past 7 years, I 

have served as Deputy Inspector General. From February 2006 to October 2006, I 

also served as DOT’s Acting Inspector General. It is my firm belief that throughout 

my Federal service I have demonstrated integrity, objectivity, commitment to good 

government, and leadership—characteristics essential to being an Inspector General. 

I am most proud of my 16 years conducting audits and investigations of transportation issues and programs at the Department of Transportation. I believe the OIG 

staff and I truly made a difference in helping Congress and DOT in their efforts 

to provide for the economic well-being and competitiveness of the country and ensure a safer, more secure, efficient, and affordable transportation system. If confirmed, I would strive to make the same contributions in support of the important 

mission of the Department of Commerce. 

It is against this backdrop that I would first like to express my view of the Inspector General’s role in the Federal Government. 

The Inspector General Act was passed in 1978 and provides that the Inspector 

General will conduct audits and investigations to improve the economy, efficiency, 

and effectiveness of government programs and to detect and prevent fraud, waste, 

and mismanagement. My view is that the Department of Commerce, like the other 

major departments of government, requires an independent, objective Inspector 

General, who will make fair but tough, fact-based calls and report to the Secretary 

and the Congress fully and forthrightly. Further, the Inspector General should work 

with the Secretary, senior departmental managers, and Congress as a force for positive change. 

The Secretary, Deputy Secretary, and Inspector General must also have a twoway open line of communication and it should be used on a regular, ongoing basis. 

I understand full well that the same is true for the relationship between the Inspector General and the Congress. The Inspector General should work constructively 

with the Department and should constantly strive for a relationship built upon mutual respect and trust. However, the Inspector General also is under an absolute obligation to report to the Congress about significant problems. I know that Secretary 

Gutie ́rrez fully shares this view and I am confident that, if confirmed, the Office 

of Inspector General staff and I would work hard to have a good and open working 

relationship with the Secretary and the Congress. 

My experience at the DOT OIG in working with the Secretary and Congress has 

been entirely positive. I consider myself fortunate to have worked with DOT and its 

modal administrations, the House and Senate, Members of both parties, and various 

transportation constituencies. This experience helped me learn about the implementation and impact of national programs; understand how decisions are made; appreciate the importance of providing policy-makers with current, relevant, factual and 

objective information; and conduct investigations and audits in a credible and constructive way. 

I have learned that the hallmarks of independence, objectivity, and nonpartisanship strengthen an IG’s credibility, especially when the findings of an audit or investigation run counter to what may have been expected. I have also learned about the 

21 

importance of Congressional oversight in making progress and leading reform. My 

experience at the DOT OIG has also taught me that government leaders want to 

get ahead of problems and expect the Inspectors General and GAO to tell them 

about risks and vulnerabilities and to provide their best recommendations for solutions. 

As Deputy Inspector General for the past 7 years, I managed a talented staff of 

about 430 in directing audits and investigations. Our work since 2000 has resulted 

in more than 700 reports covering a broad range of audit findings in the transportation modes and approximately 140 testimonies to Congressional committees. The 

basic standards of objectivity, independence, and high quality were fundamental in 

all our work, reports, and testimony. Much of this work was undertaken in response 

to requests from this Committee, and other Senate and House authorization and appropriation committees. 

I know first-hand the importance of the Inspector General function and how a 

large Department and its subordinate agencies operate. The audit and investigative 

functions of the Inspector General, under the umbrella of independence and objectivity are directed toward identifying and preventing fraud, waste, and inefficiency. 

If confirmed, I am committed to applying this base of experience to the audits and 

investigations performed by the Office of Inspector General at the Department of 

Commerce. I am equally committed, if confirmed, to providing the strong leadership 

necessary to address the current challenges facing the Office of Inspector General. 

I will work with this Committee and the Congress to address these challenges head 

on. 

Mr. Chairman, the work of the Inspectors General covers a broad front and in recent years the Inspector General community has been required by Congress to issue 

annual reports on the top challenges facing their respective departments. Those reports are intended to focus attention on the most pressing issues and serve to aid 

both Congress and the Administration in serving the American people. 

This seems particularly important for the Department of Commerce. As you noted, 

Mr. Chairman, in your oversight hearing for the Department in August of this year, 

the business of the Department of Commerce is complex and demanding. Its mission 

includes conserving and managing the oceans, ensuring the accuracy of standards 

of measurement, taking care of the census, providing economic opportunities, predicting the weather, promoting commerce and innovation and good stewardship of 

the resources that contribute to our economic prosperity. Secretary Gutie ́rrez similarly emphasized that the roots of the Department are firmly grounded in promoting 

commerce and economic growth, and exercising stewardship over our oceans and 

waterways. I want to assure the Committee that, if confirmed, these issues will 

have the highest priority for the Office of Inspector General as well. 

Mr. Chairman, this concludes my statement. I will be pleased to respond to any 

questions you or the other members of the Committee may have. 

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Todd J. Zinser. 

2. Position to which nominated: Inspector General, U.S. Department of Commerce. 

3. Date of Nomination: September 7, 2007. 

4. Address: 

Residence: Information not released to the public. 

Office: U.S. Department of Transportation, West Wing, 7th Floor, 1200 New 

Jersey Avenue, SE, Washington, DC 20590. 

5. Date and Place of Birth: September 6, 1957; Cincinnati, OH. 

6. Provide the name, position, and place of employment for your spouse (if married) and the names and ages of your children (including stepchildren and children 

by a previous marriage). 

Spouse: None (Divorced); Children: Kenneth Zinser, 18; Philipp Zinser, 14; 

Corinne Zinser, 12. 

7. List all college and graduate degrees. Provide year and school attended. 

Miami University, Oxford, OH, Master of Arts, Political Science, 1980. 

Northern Kentucky University, Bachelor of Arts, Political Science, 1979. 

8. List all post-undergraduate employment, and highlight all management-level 

jobs held and any non-managerial jobs that relate to the position for which you are 

nominated. 

22 

U.S. Department of Transportation. 

Deputy Inspector General, 2001–present. 

Acting Inspector General, February–October 2006. 

Assistant Inspector General for Investigations, 1996–2001. 

Deputy Assistant Inspector General, 1994–1996. 

Special Agent-in-Charge, New York, NY, 1991–1994. 

U.S. Department of Labor, Office of Labor-Management Standards. 

Deputy Regional Administrator, New York, NY, 1989–1991. 

District Director, New Haven, CT, 1987–1989. 

Labor Investigator, Cincinnati, OH, 1983–1987 (non-management). 

Campbell County Kentucky Fiscal Court. 

Director of Administration, 1983. 

Executive Assistant, 1982–1983. 

Austin Community College, Austin, TX, Instructor (Part-Time), 1981. 

Texas House of Representatives, Research Assistant, 1981. 

White House Intern, 1980. 

9. Attach a copy of your re ́sume ́. A copy is attached. 

10. List any advisory, consultative, honorary, or other part-time service or positions with Federal, State, or local governments, other than those listed above, within the last 5 years: None. 

11. List all positions held as an officer, director, trustee, partner, proprietor, 

agent, representative, or consultant of any corporation, company, firm, partnership, 

or other business, enterprise, educational, or other institution within the last 5 

years: None. 

12. Please list each membership you have had during the past 10 years or currently hold with any civic, social, charitable, educational, political, professional, fraternal, benevolent or religious organization, private club, or other membership organization. Include dates of membership and any positions you have held with any organization. Please note whether any such club or organization restricts membership 

on the basis of sex, race, color, religion, national origin, age, or handicap. 

Senior Executive Association, 2002–present. 

Robinson Ice Hockey Club, Fairfax, VA, President, 2006. 

Boy Scouts of America, Troop 1347, Burke VA, 2002–Present. 

Terra Centre Elementary PTA, Treasurer, 1999–2000. 

13. Have you ever been a candidate for and/or held a public office (elected, nonelected, or appointed)? If so, indicate whether any campaign has any outstanding 

debt, the amount, and whether you are personally liable for that debt. No. 

14. Itemize all political contributions to any individual, campaign organization, 

political party, political action committee, or similar entity of $500 or more for the 

past 10 years. Also list all offices you have held with, and services rendered to, a 

state or national political party or election committee during the same period: None. 

15. List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals, and any other special recognition for outstanding service or 

achievements. 

Secretary’s Gold Medal—Katrina Task Force. 

Secretary’s 9/11 Medal. 

16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relevant to the position for which you have been nominated. Do not attach copies of 

these publications unless otherwise instructed. 

‘‘Tool Time,’’ Journal of Public Inquiry, Fall/Winter 1998. 

17. Please identify each instance in which you have testified orally or in writing 

before Congress in a governmental or nongovernmental capacity and specify the 

date and subject matter of each testimony. 

Date Subject Cmte/Subcmte 

9–20–2006 Observations on FAA’s Oversight of 

Aviation Safety 

House Cmte on T&I 

Subcmte on Aviation 

23 

Date Subject Cmte/Subcmte 

7–13–2006 Lower Manhattan Reconstruction: 

Lessons Learned from Large Transportation Projects 

House Cmte on Homeland Security 

Subcmte on Management, Integration, 

and Oversight 

6–21–2006 Observations on Current and Future 

Efforts to Modernize the National Airspace System 

House Cmte on T&I 

Subcmte on Aviation 

5–4–2006 Household Goods Moving Fraud Senate Cmte on Commerce, Science, 

and Transportation 

Subcmte on Transportation and Merchant Marine 

3–28–2006 Perspectives on FAA’s FY 2007 Budget Request and the Aviation Trust 

Fund 

Senate Cmte on Commerce, Science, 

and Transportation 

Subcmte on Aviation 

3–16–2006 Pipeline Safety: Progress and Remaining Challenges House Cmte on Trans. and Infra. 

Subcmte on Highways, Transit, and 

Pipelines 

5–11–2005 Background Checks for Holders of 

Commercial Drivers Licenses with 

Hazardous Materials Endorsement 

House Cmte on Trans. and Infra. 

Subcmte on Highways, Transit and 

Pipelines 

3–30–1995 FAA Training Programs House Cmte on Appropriations 

Subcmte on Transportation 

18. Given the current mission, major programs, and major operational objectives 

of the department/agency to which you have been nominated, what in your background or employment experience do you believe affirmatively qualifies you for appointment to the position for which you have been nominated, and why do you wish 

to serve in that position? 

My experience as Deputy Inspector General at the Department of Transportation 

for the past 6 years, including 8 months as Acting Inspector General, and my other 

executive and managerial experience with the DOT OIG and the Department of 

Labor gained during my 24 years of Federal service, affirmatively qualifies me for 

this appointment. 

I wish to serve as Inspector General at the U.S. Department of Commerce because 

of the importance of the Inspector General in preventing and detecting fraud, waste 

and abuse and promoting economy and efficiency in Departmental programs and operations. I believe my appointment could benefit the Department and the Office of 

Inspector General at this critical time for the OIG. The important mission and programs of the Department of Commerce require an Inspector General focused on integrity, stewardship and getting the most for the taxpayers’ dollars. 

19.What do you believe are your responsibilities, if confirmed, to ensure that the 

department/agency has proper management and accounting controls, and what experience do you have in managing a large organization? 

The operations of the Office of Inspector General should be held to a higher standard within a Department since the OIG must, in turn, audit and investigate the operations of the Department. If an OIG does not have proper management and accounting controls for its own operation, it diminishes the OIG’s standing to make 

recommendations with respect to the operations of other agencies of the Department. As Deputy Inspector General at DOT, I directly supervise the operations of 

the OIG, with total budgetary resources of approximately $70 million and a staffing 

level of approximately 430 located throughout the United States, including 12 Senior Executives. 

20. What do you believe to be the top three challenges facing the department/ 

agency, and why? 

Promptly resolve ongoing investigations by the Congress and the Office of Special 

Counsel concerning the operations of the OIG. 

Address organizational and workforce issues resulting from those investigations. 

Plan and implement oversight of the Department of Commerce, concentrating on 

those programs and operations of most importance to the Administration and the 

Congress. 

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. Please include information related to retirement accounts. 

I have no financial arrangements, deferred compensation agreements or other continuing dealings with business associates, clients, or customers. Retirement accounts 

24 

consist of retirement coverage under the Civil Service Retirement System and annuity and IRA accounts disclosed on my Public Financial Disclosure Report, SF278. 

2. Do you have any commitments or agreements, formal or informal, to maintain 

employment, affiliation, or practice with any business, association or other organization during your appointment? If so, please explain: None. 

3. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated. 

My three children and I hold stock in a company with a wholly-owned subsidiary 

in the broadcasting industry. Ethics Counsel for the Department of Commerce has 

determined that I do not have to divest these holdings, but if a matter arises in 

the Inspector General’s Office that could affect the financial interests of this wholly 

owned subsidiary (or the parent company), it would be necessary that I recuse myself from participating in the matter. In the event my participation in a matter from 

which I am disqualified is important to the government, I will seek advice from an 

ethics official on means to resolve any conflict of interest, such as by divestiture or 

by obtaining a conflict of interest waiver. 

4. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated: None. 

5. Describe any activity during the past 10 years in which you have been engaged 

for the purpose of directly or indirectly influencing the passage, defeat, or modification of any legislation or affecting the administration and execution of law or public 

policy: None. 

6. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. 

I will seek and closely follow the advice of the Department’s Ethics Counsel in 

accordance with my Ethics Agreement with the Department of Commerce, which is 

documented by memorandum dated August 2, 2007, to Barbara S. Fredericks, Assistant General Counsel for Administration. 

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? If so, please explain. 

I have never been disciplined or cited for a breach of ethics. However, within 

weeks of my becoming Acting Inspector General at DOT in February 2006, I selfreported to the President’s Council on Integrity and Efficiency (PCIE), an anonymous complaint that I received. The letter asserted that with the departure of the 

former DOT IG, I would be ‘‘unchecked’’ in my ‘‘misconduct and mismanagement.’’ 

The six allegations contained in the letter all related to my management during the 

tenure of the former IG but provided no explanation why these allegations were not 

raised with the former IG during the 6 years I served as his Deputy. After review 

by the PCIE Integrity Committee, the PCIE determined that the complaint did not 

establish specific wrongdoing and referred the complaint back to me and the Department. 

The PCIE also received an anonymous complaint in September 2006, alleging that 

I was ‘‘covering up’’ an internal investigation into a stolen DOT OIG laptop computer. In response, the Acting Deputy Inspector General wrote to the PCIE and informed them that he had been assigned by me, weeks before the date of the complaint, to conduct the investigation and that I was not involved in managing the 

investigation. The PCIE also closed its file on this allegation. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority of any Federal, State, county, or municipal entity, other than for a minor traffic offense? If so, please explain: No. 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, 

please explain: No 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? If so, please explain: No. 

5. Have you ever been accused, formally or informally, of sexual harassment or 

discrimination on the basis of sex, race, religion, or any other basis? If so, please 

explain: No. 

6. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination: 

None. 

25 

D. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by Congressional committees? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

Congressional witnesses and whistleblowers from reprisal for their testimony and 

disclosures? Yes. 

3. Will you cooperate in providing the Committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters 

of interest to the Committee? Yes. 

4. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

RE ́SUME ́ OF TODD J. ZINSER

Professional Experience 

U.S. Department of Transportation, Office of Inspector General, Washington, D.C. 

Deputy Inspector General, Career Senior Executive Service (August 2001 to 

Present) 

Duties: Lead the Office of Inspector General oversight of all Departmental programs and operations. Manage the daily operations of the OIG—Fiscal Year 06 

budgetary resources of $70 million and authorized staffing level of 430. Supervise 

12 members of the Senior Executive Service responsible for audits, investigations, 

legal and economic analysis. Served as Acting Inspector General from February 11, 

2006 to October 26, 2006. 

Examples of Fiscal Year 06 accomplishments include: 

• Presented testimony before Congress 11 times (personally testified 6 times); 

• Issued audit reports which contained over 200 recommendations which identified more than $890 million in questioned costs and funds for better use; and 

recovery of approximately $71 million; and 

• Conducted investigations resulting in 169 indictments; 177 convictions; fines, 

restitution and recoveries of approximately $48 million, and 210 administrative 

actions and debarments. 

U.S. Department of Transportation, Office of Inspector General 

• Assistant Inspector General for Investigations—SES—(January 1996 to August 

2001). • Deputy Assistant Inspector General for Investigations (October 1994 to January 

1996). • Special Agent-in-Charge, New York, NY (October 1991 to September 1994). 

U.S. Department of Labor, Office of Labor Management Standards 

• Deputy Regional Administrator, New York, NY (May 1989 to October 1991). • District Director, New Haven, CT (October 1987 to May 1989). • Labor Investigator, Cincinnati, OH (December 1983 to October 1987). 

Education 

Miami University, Oxford, Ohio, Masters of Art, Political Science, 1980. 

Northern Kentucky University, Bachelor of Arts, Political Science, 1979. 

Honors and Awards 

Secretary’s Gold Medal—Katrina Task Force (2006); Secretary’s 9/11 Medal. 

References 

Available upon request. 

The CHAIRMAN. I thank you very much, sir. Your previous two 

Department Inspectors General resigned in the midst of controversy. What do you intend to do to restore confidence in your 

Department, and also on this Committee? 

Mr. ZINSER. Thank you, Senator. I am more familiar with the circumstances involving the immediately preceding Inspector General 

at the Department of Commerce. I am also aware that there are 

a number of Inspectors General that are facing scrutiny in the government. I think it’s unfortunate. I think my plan is to first resolve 

26 

whatever outstanding investigations are ongoing at the Department of Commerce. 

I would also address the workforce issues that have been created 

by those investigations. I would also like to prepare an effective 

oversight plan for the office and begin again working with the Congress and the Department to oversee the important programs that 

the Department is responsible for. In my experience, sir, I think we 

have to let the work of the office rebuild its reputation and contribute to the oversight that is necessary for the Department of 

Commerce. 

The CHAIRMAN. How would you rate the morale in your Department? 

Mr. ZINSER. I don’t have any firsthand knowledge at this point, 

sir, but my understanding is that morale is low. 

The CHAIRMAN. I thank you very much for your candor. 

Mr. Vice Chairman? 

Senator STEVENS. Thank you very much. 

You have indicated in your written statement that you want to 

increase communication between your office and Congress. You just 

mentioned that here. What do you have in mind? 

Mr. ZINSER. Sir, I can only respond based on the experience that 

I have had at my current employment at the Department of Transportation Office of Inspector General. 

Senator STEVENS. You are not intending to send up lobbyists or 

something for the IG’s Office are you? 

Mr. ZINSER. No sir, I want to have an open communication with 

the staff of the committees of jurisdiction, make sure that we are 

aware of the issues that they view as important, and determine 

whether or not there is any work that the Department of Commerce Office of Inspector General could do to contribute to that. 

That is what I would have in mind by opening communications 

more, in terms of building an oversight agenda for our office. 

Senator STEVENS. The Chairman asked about the morale of the 

Department. Now, do you think morale is something the Inspector 

General should be concerned with? 

Mr. ZINSER. Sir, I took the question to mean the morale of the 

Office of Inspector General at the Department of Commerce. I do 

think that would be an important issue to address straight away, 

sir. 

Senator STEVENS. I misunderstood. I thought the Chairman was 

speaking about the whole Department. 

The CHAIRMAN. No, just—— 

Senator STEVENS. Just your own office. 

Mr. ZINSER. Yes, sir. 

Senator STEVENS. What’s your opinion about the morale of the 

whole Department? 

Mr. ZINSER. Well, again sir, I don’t have any firsthand experience, but from those who I’ve spoken to about the Department of 

Commerce, I’ve heard nothing but good things about the people 

that work there and they are very good to work with. In my meetings with Secretary Gutie ́rrez and former Deputy Secretary Sampson, I did get a good feeling that they understand the role of the 

Inspector General, they appreciate it, and that they are looking forward to having a confirmed Inspector General. 

27 

Senator STEVENS. And you have been the acting Inspector General at one time, right? 

Mr. ZINSER. Yes, sir, with the Department of Transportation. 

Senator STEVENS. Oh, you have not been acting in this Department? 

Mr. ZINSER. No, sir. 

Senator STEVENS. Well, thank you, thank you very much for your 

service. I think this has got to be one of the toughest jobs, to be 

within the Department, yet be the critic of it. So, I wish you well. 

Mr. ZINSER. Thank you, sir. 

The CHAIRMAN. And I wish you well, sir. Thank you. 

Mr. ZINSER. Thank you, Mr. Chairman. 

The CHAIRMAN. Our next witness is the Commissioner-Designate 

of the Federal Maritime Commission, Mr. Carl B. Kress. 

Mr. Kress, welcome, sir. 

STATEMENT OF CARL B. KRESS, NOMINATED TO BE 

COMMISSIONER, FEDERAL MARITIME COMMISSION 

Mr. KRESS. Thank you, Mr. Chairman, Mr. Vice Chairman, Members of the Committee. Thank you for this opportunity to appear 

before you today. I have submitted a statement as well, and would 

like to summarize those remarks here. 

The CHAIRMAN. Without objection, so ordered. 

Mr. KRESS. Thank you. I’m honored to have been nominated by 

the President to serve as Commissioner on the Federal Maritime 

Commission and to be considered by this Committee. 

Before I get started with my comments, I would like to take a 

moment to express particular thanks to my parents, retired U.S. 

Army Corps of Engineers Colonel Carl Franklin, and Mrs. 

Roswitha Kress who, unfortunately, were not able to make it today, 

but I think due to the wonders of the World Wide Web, may be 

watching from California and Germany respectively at this time. 

I, also would like to thank for her support my wonderful fiance ́e, 

Molly Gower, who is here, as well as her family who I would like 

to introduce: her parents, Mr. and Mrs. John and Mary Gower, and 

Cathy Muha, her sister, and Richard Muha, her nephew, who is a 

star lacrosse player at Richard Montgomery High School in Rockville, I wanted to get that on the record. 

And, of course, many thanks to all of my friends and colleagues 

who have been with me over the years, many of whom are here 

today, as well. 

Ensuring both the efficiency and security of our Nation’s trade 

flows is a complex and challenging task in this post-9/11 environment, and I seek the opportunity to contribute to that vital goal as 

a Commissioner. 

The Federal Maritime Commission’s role as the independent 

body responsible for regulating ocean-borne transportation in the 

foreign commerce of the United States, places the Agency in a key 

position in America’s commerce. 

The Commission fosters a fair, efficient and secure maritime 

transportation system through its policies and regulations, protects 

U.S. maritime commerce from unfair trade practices, works with 

shippers to ensure compliance with U.S. shipping laws, and assists 

in dispute resolution. 

28 

I believe that my tenure at the U.S. Trade and Development 

Agency, my experience on the personal staff of a Commissioner at 

the U.S. International Trade Commission and my background as 

an attorney in private practice, together provide a strong foundation for successfully advancing the Federal Maritime Commission’s 

mission. 

If confirmed, I will execute my duties with fairness and objectivity. This will include a careful review of the facts and applicable 

laws and regulations for all matters coming before the Commission. 

Additionally, it will be my ongoing responsibility to reach out to, 

and work with, the Commission’s many important stakeholders, including shippers, marine terminal operators, ocean transportation 

intermediaries, private citizens and U.S. exporters and importers. 

To best serve these important constituencies, I look forward to 

collaborating with each of them, and to establishing strong relationships with you and the members of your staff in the service of 

our joint goals of ensuring the safety, security, and efficiency of our 

Nation’s maritime commerce. 

Again, Mr. Chairman, and distinguished Members of the Committee, I appreciate the opportunity to appear before you today. 

Thank you for your, and your staff’s, consideration of my nomination. I would be pleased to answer any questions that you have. 

[The prepared statement and biographical information of Mr. 

Kress follow:] 

PREPARED STATEMENT OF CARL B. KRESS, NOMINATED TO BE COMMISSIONER, FEDERAL MARITIME COMMISSION

Mr. Chairman, and Members of the Committee, thank you for the opportunity to 

appear before you today. 

I am honored to have been nominated by the President to serve as a Commissioner on the Federal Maritime Commission, and to be considered by this Committee. 

I would like to take a moment to express particular thanks to my parents, retired 

Army Col. Carl Franklin and Roswitha Kress, for their guidance and support over 

the years. They were unfortunately not able to fly out from California today but are 

certainly here in spirit. I would also like to thank for her support my wonderful 

fiance ́e, Molly Gower, who is here today, as is her family, and my many friends and 

colleagues who have been with me over the years. 

Ensuring both the efficiency and security of our Nation’s trade flows is a complex 

and challenging task in this post-9/11 environment, and I seek the opportunity to 

contribute to that vital goal as a Commissioner. 

Trade is a cornerstone of our Nation’s economy, and maritime commerce makes 

up the lion’s share. According to the American Association of Port Authorities, 99 

percent of U.S. trade by weight and 61 percent by value is carried by ocean-going 

vessels, and in 2006 more than 8 million U.S. jobs were related to port activities. 

The Federal Maritime Commission’s role as the independent body responsible for 

regulating ocean borne transportation in the foreign commerce of the United States 

places the agency in a key position in America’s commerce. The Commission fosters 

a fair, efficient and secure maritime transportation system through its polices and 

regulations, protects U.S. maritime commerce from unfair foreign trade practices, 

works with shippers to ensure compliance with U.S. shipping laws, and assists in 

dispute resolution. If confirmed, I look forward to applying my experience in international trade law and practice, and my years as a leader in Federal service, to ensuring the Commission’s continued success in executing its important roles. 

I believe that my tenure at the U.S. Trade and Development Agency (USTDA), 

my experience on the personal staff of a Commissioner at the U.S. International 

Trade Commission (USITC), and my background as an attorney in private practice 

together provide a strong foundation for successfully advancing the Federal Maritime Commission’s mission. 

I have worked for the past 8 years for the Federal Government on trade-related 

issues, at the USITC and USTDA. My 6 years at the U.S. Trade and Development 

29 

Agency have been focused on the agency’s mission of connecting U.S. exports of 

goods and services with economic development projects around the globe. As a Regional Director I am responsible for supporting economic development projects and 

pursuing a more level playing field for U.S. exporters in the Middle East and North 

Africa. Previously, as the agency’s Chief of Staff, I took part in all aspects of leading 

and managing the agency. 

As Counsel to a Commissioner at the USITC, an independent regulatory agency 

like the Federal Maritime Commission, my responsibilities covered all aspects of the 

Commissioner’s work, including application of laws and regulations to cases before 

the USITC. In private practice with a large international law firm I was responsible 

for legal and regulatory matters that would be applicable in reviewing disputes that 

come before the Commission. 

If confirmed, I will execute my duties with fairness and objectivity. This will include a careful review of the facts and applicable laws and regulations for all matters coming before the Commission. Additionally, it will be my ongoing responsibility to reach out to and work with the Commission’s many important stakeholders, 

including shippers, marine terminal operators, ocean transportation intermediaries, 

private citizens, and U.S. exporters and importers. To best serve these important 

constituencies, I look forward to collaborating with each of them, and to establishing 

a strong relationship with you and the members of your staff, in the service of our 

joint goals of ensuring the safety, security, and efficiency of our Nation’s maritime 

commerce. 

Again, Mr. Chairman and distinguished members of the Committee, I appreciate 

the opportunity to appear before you today, and thank you for your and your staff’s 

consideration of my nomination. I would be pleased to answer any questions that 

you have. 

A. BIOGRAPHICAL INFORMATION

1. Name (including any former names or nicknames used): Carl Bernard Kress. 

2. Position to which nominated: Commissioner, Federal Maritime Commission. 

3. Date of Nomination: August 2, 2007. 

4. Address (List current place of residence and office addresses): 

Residence: Information not released to the public. 

Office: U.S. Trade & Development Agency, 1000 Wilson Blvd., Suite 1600, Arlington, VA 22209. 

5. Date and Place of Birth: February 4, 1964; Ft. Belvoir, Virginia. 

6. Provide the name, position, and place of employment for your spouse (if married) and the names and ages of your children (including stepchildren and children 

by a previous marriage): Not married; no children. 

7. List all college and graduate degrees. Provide year and school attended: 

LL.M, University of Hamburg, Germany, 1996. 

J.D., UCLA, 1995. 

B.A., U.C. Berkeley, 1987. 

8. List all post-undergraduate employment, and highlight all management-level 

jobs held and any non-managerial jobs that relate to the position for which you are 

nominated. 

Regional Director for the Middle East, North Africa & South Asia, U.S. Trade 

& Development Agency. 

Chief of Staff and Senior Advisor to the Director, U.S. Trade & Development 

Agency. 

Counsel to the Commissioner, U.S. International Trade Commission. 

Associate, McDermott Will & Emery. 

Law Clerk, Feddersen Laule Scherzberg & Ohle Hansen Ewerwahn. 

Summer Associate, McDermott Will & Emery. 

Research Assistant, UCLA Law Professor George Brown. 

Research Assistant, UCLA Law Professor Arthur Rosett. 

Research Assistant, UCLA Law Professor Susan French. 

Legislative Correspondent, U.S. Senator John Seymour. 

Precinct Director, San Francisco County Republican Central Committee 1. 

Legislative Assistant, Mayer Brown & Platt. 

30 

Legislative Assistant, U.S., Mayer Brown & Pratt. 

Legislative Assistant, U.S. Representative, Charles ‘‘Chip’’ Passion, Jr. 

9. Attach a copy of your re ́sume ́. A copy is attached. 

10. List any advisory, consultative, honorary, or other part-time service or positions with Federal, State, or local governments, other than those listed above, within the last 5 years: None. 

11. List all positions held as an officer, director, trustee, partner, proprietor, 

agent, representative, or consultant of any corporation, company, firm, partnership, 

or other business, enterprise, educational, or other institution within the last 5 

years. 

Member of the Board, Washington Foreign Law Society. 

12. Please list each membership you have had during the past 10 years or currently hold with any civic, social, charitable, educational, political, professional, fraternal, benevolent, or religious organization, private club or other membership organization. Include dates of membership and any positions you have held with any organizations. Please note whether any such organizations restricts membership on 

the basis of sex, race, color, religion, national origin, age, or handicap. 

American Society of International Law. Member since 1997. 

Bar of the District of Columbia. Member since 1997. 

California State Bar. Member since 1996. Currently an inactive member. 

Washington Foreign Law Society. Member since 2004. Member of the Board of 

Directors since June 2007. 

St. Mark’s Episcopal Church, Washington, D.C. Member since 2002. 

Appalachian Mountain Club. Member from 2003–2005. 

Phi Beta Kappa. Member since 1987. 

Friends of the National Zoo. Member 2002, 2006–2007. 

Washington Area Music Association. Member since 1999. Member of Education 

Committee in 2001. 

The Mankind Project. Member since 1997. The Mankind Project is a men’s 

501(c) educational organization. www.mkp.org. 

The Goethe Institute. Member since 1999. 

WAMU Radio. 2005–2006. 

Washington International Trade Association. Member 2000–2003. 

13. Have you ever been a candidate for and/or held a public office (elected, nonelected, or appointed)? If so, indicate whether any campaign has any outstanding 

debt, the amount, and whether you are personally liable for that debt. No. 

14. Itemize all political contributes to any individual, campaign, organization, political party, political action committee, or similar entity of $500 or more for the past 

10 years. Also list all offices you have held with, and services rendered to, a state 

or national political party or election committee during the same period. 

Contributions: 

Connie Morella For Congress Committee, $500. 

Bush-Cheney 2004 (Primary) Inc., $500. 

Bush-Cheney 2004 (Primary) Inc., $500. 

Bush-Cheney 2004 Compliance Committee Inc., $500. 

Participated in 72 Hour Task Force Legal Team for Republican National Committee, Nov. 2004. 

15. List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals, and any other special recognition for outstanding service or 

achievements. 

Phi Beta Kappa. 

16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relevant to the position for which you have been nominated. Do not attach copies of 

these publications unless otherwise instructed. 

The U.S. Government and Post-Conflict Economic Reconstruction, 11 UC DAVIS

J. INT’L L. & POL’Y 75 (2004). 

The 1996 Telekommunikationsgesetz and the Telecommunications Act of 1996: 

Toward More Competitive Markets in Telecommunications in Germany and the 

United States, 49 FED. COM. L.J. 551 (1997). 

31 

Comment, Beyond Nahrstedt: Reviewing Restrictions Governing Life in a Property Owners Association, 42 UCLA L. REV. 837 (1995). 

17. Please identify each instance in which you have testified orally or in writing 

before Congress in a governmental or nongovernmental capacity and specify the 

date and subject matter of each testimony: None. 

18. Given the current mission, major programs, and major operational objectives 

of the department/agency to which you have been nominated, what in your background or employment experience do you believe affirmatively qualifies you for appointment to the position for which you have been nominated, and why do you wish 

to serve in that position? 

My tenure as a senior manager at the U.S. Trade and Development Agency 

(USTDA), my experience on the personal staff of a Commissioner at the U.S. International Trade Commission (USITC), and my background as an attorney in private 

practice together provide a strong foundation for successfully advancing the Federal 

Maritime Commission’s mission of serving our Nation’s maritime transportation 

needs. I have worked for the past 8 years for the Federal Government on trade-related issues, at the USITC and USTDA. In particular, during the past 6 years at 

USTDA my responsibilities have included the development and implementation of 

many transportation projects. My time as Chief of Staff of USTDA has also given 

me valuable experience in all aspects of leading and managing a Federal agency, 

such as personnel, administrative, information technology, budget, policy, and program matters. As Counsel to a Commissioner at the USITC, an independent regulatory agency like the Federal Maritime Commission, my responsibilities covered all 

aspects of the Commissioner’s work, including application of laws and regulations 

to cases before the USITC. My time as an attorney with a large law firm also provided experience in evaluating legal and regulatory matters that would be applicable in reviewing disputes that come before the Commission. 

I seek this position because it would be an opportunity to build upon my prior 

experience in government service in trade, commerce, and law, and to apply that 

experience and my management skills to the challenges facing America’s maritime 

transport system. Ensuring both the security and efficiency of our Nation’s trade 

flows is a complex and challenging task in this post-9/11 environment, and I seek 

the opportunity to contribute my skills and experience to that vital goal. I grew up 

in a military family that emphasized the value of government service. I have taken 

that upbringing to heart by embarking on a career of civilian government service, 

and joining the Commission would be a significant opportunity to continue that tradition. 

19. What do you believe are your responsibilities, if confirmed, to ensure that the 

department/agency has proper management and accounting controls, and what experience do you have in managing a large organization? 

As a Commissioner I would share with my colleagues on the Federal Maritime 

Commission full responsibility to lead and manage the Commission in a manner 

consistent with the highest standards of professionalism and effectiveness. Effective 

and efficient management of an organization’s resources is fundamental—indeed 

crucial—to the accomplishment of its mission. Therefore, it is a critical responsibility of those charged with its leadership to devote whatever time and attention is 

required to achieve sound management. I would feel comfortable accepting that responsibility based on my considerable experience at two Federal agencies of similar 

size to the FMC. In particular, as the Chief of Staff of the USTDA and a member 

of its executive committee, I managed the budget formulation process, including the 

Congressional and OMB submissions; provided counsel to the Director on human resource planning, staffing, and organization; and through the executive committee 

provided recommendations to the Director on a host of management issues, such as 

contracting and finance. Consequently, if confirmed, I will work with my fellow 

Commissioners to effectively marshal the human, financial, information and other 

administrative resources available to achieve the goals, objectives, and programs of 

the Commission. 

20. What do you believe to be the top three challenges facing the department/ 

agency, and why? 

If confirmed, I would focus in particular on three key management priorities that 

represent top challenges for any Federal agency: (1) the recruitment, development, 

leadership, and retention of human resources; (2) continued modernization of information technology systems; and (3) the need for accurate information, in this case 

regarding foreign trade and regulatory practices. Concurrent with taking on my responsibilities with respect to the Commission’s programmatic activities, I would immediately focus my attention on thoroughly understanding what particular issues 

32 

face the Commission in these areas and working to ensure excellence in Commission 

performance in all three. 

i. Attracting, training, leading, and retaining qualified and dedicated employees 

are central to the Federal Maritime Commission’s operations, as a skilled and 

dedicated workforce is the lifeblood of any organization. Like all Federal agencies, the Commission must compete with the private sector for the best available talent. It is thus essential that the Commission be organized, managed, 

and led in such manner as to attract and retain such talent, as well as provide 

its employees with the tools with which to accomplish their responsibilities as 

effectively as possible. This is particularly critical today, as the Federal Government as a whole faces the retirement of large numbers of key personnel. 

ii. The modernization of IT systems has been and continues to be a key need 

of any agency, consistent with government-wide IT and Internet priorities and 

requirements. A review of the Federal Maritime Commission’s recent Annual 

Reports and other documents shows a strong and consistent campaign to modernize the Commission’s IT systems, in order to both increase online access for 

external clients and improve internal operations. Continuing this process of ensuring that the Commission’s systems are user-friendly, practical, widely-accessible, and secure must be an ongoing high priority. 

iii. The Federal Maritime Commission’s Mission includes ‘‘Protect[ing] U.S. maritime commerce from unfair foreign trade practices and market-distorting activities.’’ Critical to achieving that goal is to gather accurate and comprehensive information regarding foreign practices and legal and regulatory structures, and 

to evaluate effectively that information. This is essential in order to craft appropriate action and make recommendations for ensuring the continued competitiveness of the U.S. maritime transportation system. My experience at both the 

USITC and USTDA showed the importance of having accurate information regarding foreign activities, so that the agencies could respond properly in pursuing a level playing field for our Nation’s international commercial activities. 

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients or customers. Please include information related to retirement accounts. 

My 401(k) retirement account from my time with the law firm McDermott Will 

& Emery continues to be managed under the firm’s plan. Neither I nor the firm has 

made any contributions to my account since I left the firm in January 1999. 

2. Do you have any commitments or agreements, formal or informal, to maintain 

employment, or practice with any business, association or other organization during 

your appointment? If so, please explain. No. 

3. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated: None. 

4. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated: None. 

5. Describe any activity during the past 10 years in which you have been engaged 

for the purpose of directly or indirectly influencing the passage, defeat, or modification of any legislation or affecting the administration and execution of law or public 

policy: None. 

6. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. 

Should any matter arise in which there appears to be a potential conflict, I would 

consult with the Commission’s Designated Ethics Officer and, if necessary, develop 

an appropriate means of resolving such conflict. 

C. LEGAL MATTERS. 

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? If so, please explain. No. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority of any Federal, State, County, or Municipal entity, other than for a minor traffic offense? If so, please explain. No. 

33 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, 

please explain. No. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? If so, please explain. No. 

5. Have you ever been accused, formally or informally, of sexual harassment or 

discrimination on the basis of sex, race, religion, or any other basis? If so, please 

explain. No. 

6. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination: 

None. 

D. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by Congressional committees? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

Congressional witnesses and whistleblowers from reprisal for their testimony and 

disclosures? Yes. 

3. Will you cooperate in providing the Committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters 

of interest to the Committee? Yes. 

4. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

RE ́SUME ́ OF CARL B. KRESS

Professional Experience 

U.S. Trade and Development Agency, Arlington, VA. 

Regional Director for the Middle East, North Africa, and South Asia, 2004– 

present. 

Responsible for developing and implementing all program activities in the 

MENASA region, which includes most of the Arab world and spans from Morocco to Bangladesh. Supervise staff and contractors in the United States, India 

and Thailand in identifying and pursuing projects that support host country 

economic development and U.S. trade opportunities. Responsible for obligating 

$8–$10 million in program funds each year for economic development activities, 

including technical assistance, feasibility studies, conferences, and reverse trade 

missions. Projects are selected with particular attention to sectors where foreign 

project sponsors seek partnerships with U.S. providers of goods and services, 

such as in information and communications technology (ICT), transportation, 

and energy. Representative project examples include: 

• U.S.-India Aviation Cooperation Program. In collaboration with the Federal 

Aviation Administration, the Indian Ministry of Civil Aviation, and U.S. private sector representatives, spearheaded formation of program dedicated to 

coordinating U.S. public and private sector solutions to Indian aviation sector 

development needs. 

• Transportation Solutions for South Asia Trade. Organized conference focused 

on trade-related transportation infrastructure project opportunities in South 

Asia. 

• Jordanian National Freight Information and Transportation Hub Project. 

Supported pilot project using U.S. technology to manage the documentation 

required for transporting cargo into and out of Jordan’s land border crossings 

and the Port of Aqaba, which has resulted in significant efficiency gains for 

truckers and shippers. 

• Making Connections in the Middle East & North Africa Conference. Organized conference that highlighted ICT project opportunities for U.S. suppliers 

and provided a forum for high-level policy dialogue among U.S. and MENA 

senior ICT officials. 

Chief of Staff and Senior Advisor to the Director, 2001–2004. 

Senior Bush Administration appointee in position encompassing all aspects of 

leading a foreign assistance agency with a yearly budget of $50–$60 million and 

a staff of 50 employees. 

• Member of executive management committee. Actively involved with all administrative, program, and policy decision-making in the agency, including: 

• review and approval of all agency program activities world-wide; 

34 

• management of budget formulation process, including Congressional and 

Office of Management and Budget submissions; 

• providing counsel to the Director on human resource planning, staffing, 

and organization; and 

• providing recommendations through the executive committee to the Director on all management issues, including contracting, finance, IT, and 

outreach. 

• Served in place of the Director as agency principal on Secretary of Commerceled trade missions and at other events world-wide. 

• Served as agency’s White House liaison. 

• Represented USTDA in meetings with U.S. and foreign business leaders, foreign and domestic senior government officials, and with Congressional staff. 

U.S. International Trade Commission, Washington, D.C. 

Counsel, Office of Commissioner Thelma J. Askey, 1999–2001. 

Advisor to the Commissioner on legal, policy and factual issues relating to antidumping and countervailing duty investigations, safeguard actions, and intellectual property rights protection cases. Advised the Commissioner in preparation 

for votes, hearings, and policy decisions. 

McDermott, Will & Emery, Washington, D.C. 

Associate, Federal Regulatory Practice Group, 1996–1999. 

Member of international trade practice group focused on the following areas: 

GATT/WTO; customs; antidumping and countervailing duty; and administrative 

law. Significant responsibilities included: 

• Resolved customs issues, including tariff classification and country of origin 

matters. 

• Prepared Antiboycott Law and Foreign Corrupt Practices Act manuals for 

multinational corporation and delivered presentations to corporate executives. 

Office of U.S. Senator John Seymour, Legislative Aide, Washington, D.C., 1991– 

1992. 

Issue Areas: International Trade, Transportation, and Inter-Governmental Affairs. 

San Francisco County Republican Central Comm., Precinct Director, San Francisco, CA 1990. 

Directed Get-Out-The-Vote program in San Francisco County. 

Mayer Brown & Platt, Legislative Assistant, Washington, D.C., 1989–1990. 

Issues Areas: Tax and International Trade. 

Congressman Charles ‘‘Chip’’ Pashayan, Jr., Legislative Assistant, Washington, 

D.C., 1988–1989. 

Issue Areas: Social Security, Science and Technology, Transportation, and 

Healthcare. 

Education 

University of Hamburg, Germany, Faculty of Law—LL.M., 1996. 

Received master’s degree in program for foreign attorneys. Particular focus on 

telecommunications and comparative contracts law. Degree and thesis awarded 

Magna Cum Laude. 

UCLA School of Law—J.D., 1995. 

UCLA Law Review, Articles Editor. 

UCLA Pacific Basin Law Journal, Assistant Editor. 

UC Berkeley—B.A., History and Religious Studies, 1987. 

Phi Beta Kappa. 

High Distinction in General Scholarship. 

Religious Studies Department Highest Honors. 

Professional Memberships 

Bars of the District of Columbia and California (inactive). 

35 

American Society of International Law. 

Washington Foreign Law Society—Member of the Board. 

The CHAIRMAN. I thank you very much. And I’ll call on the other 

nominee, Alan Paul Anderson. 

STATEMENT OF HON. A. PAUL ANDERSON, RENOMINATED TO 

BE COMMISSIONER AND CHAIRMAN-DESIGNATE, FEDERAL 

MARITIME COMMISSION 

Mr. ANDERSON. Thank you, Mr. Chairman, Senator Stevens. My 

name is Paul Anderson of Florida. Thank you for scheduling this 

hearing today, it is truly an honor and a privilege to appear before 

you and the distinguished members of the Commerce, Science, and 

Transportation Committee. 

I’d like to express my sincere gratitude and appreciation to my 

senior Senator, Senator Bill Nelson, for his very gracious, kind introduction to the Committee. 

At this time, I’d like to introduce some of my family members 

that are here, Mr. Chairman. With me today is my mother and father, Captain Perry Anderson, United States Marine Corps, Retired, a distinguished veteran and his loving wife, Ann. 

Mom and Dad, thank you for all of your support, love and encouragement. 

My wonderful wife, Sarah, and our newest member of the Anderson clan, Jordan, who has taken to—learned early to take instructions well, he’s been a wonderful baby today. 

I also want to recognize Commissioner Hal Creel, as a former 

staff member of this Committee, who is here today, as well as Commissioner Rebecca Dye, two of my colleagues on the Commission, 

and also, former Commissioner Ming Shu, who traveled here from 

California, as well as many of the staff and longtime personal 

friends that are here in the audience today. I really appreciate your 

support. 

As the independent regulatory agency responsible for overseeing 

ocean-borne transportation and the U.S. foreign commerce, the 

Federal Maritime Commission works to ensure a fair and competitive environment in which carriers, shippers, and other stakeholders can operate with the minimum of government intervention, 

while being protected from unfair foreign shipping practices. 

Working within its statutory framework, the Commission has developed a regulatory system that allows for necessary oversight 

with minimal disruption to the efficient flow of U.S. foreign commerce. 

As this Committee knows firsthand, maritime shipping is a dynamic and changing industry. During the past 5 years, the number 

of 20-foot containers coming into the United States has increased 

dramatically, from eleven and one-half million TEUs, to almost 20 

million TEUs in 2006. This rapid increase in trade volume has 

highlighted the need to address improvements to our Nation’s 

transport infrastructure. 

In addition, since September 11, 2001, we have recognized the 

importance of securing the ocean transportation system, while 

maintaining the free flow of trade. 

36 

While the FMC is not on the front line of ensuring the security 

of our ocean-borne commerce, we are committed to helping frontline security agencies ensure the safe and efficient movement of 

cargo to and from the United States. 

In this regard, the Commission’s oversight of ocean common carriers, marine terminal operators and its licensing and bonding of 

ocean transportation intermediaries is a vital link in the effort to 

protect our Nation’s seaports. 

During my career, I have worked in several regulated industries, 

including 9 years in the maritime sector with an international, diversified transportation company, which operated Jones Act tankers, offshore supply vessels, tug and barges. 

This experience, combined with leadership and education, economic development and community service, has prepared me for 

my current role as FMC Commissioner, and has given me an understanding of the issues faced in the private sector, and the maritime transportation business. I’ve had the opportunity to learn 

firsthand, to work in a port, to work for a maritime company, the 

importance of our maritime transportation system to our Nation’s 

economy. 

If confirmed by the Senate, I will continue to work to fairly and 

objectively fulfill the Federal Maritime Commission’s statutory responsibilities, while making every effort to listen to the Commission’s stakeholders, in order to reach balanced, and well-informed 

decisions. 

Thank you, Mr. Chairman, Senator Stevens, Members on the 

Committee, and your staff, for your time and consideration today. 

I appreciate the opportunity to appear before you today. If confirmed, I look forward to working with you and your staff as the 

Commission fulfills its responsibilities. 

I’ll be happy to answer any questions. Thank you. 

[The prepared statement and biographical information of Mr. Anderson follow:] 

PREPARED STATEMENT OF HON. A. PAUL ANDERSON, RENOMINATED TO BE

COMMISSIONER AND CHAIRMAN-DESIGNATE, FEDERAL MARITIME COMMISSION

Mr. Chairman, 

Thank you for scheduling this hearing today. It is an honor and a privilege to appear before you and the distinguished Members of the Commerce, Science, and 

Transportation Committee. I would like to express my sincere gratitude to my Senator, Bill Nelson, for his introduction to the Committee. 

At this time I would like to introduce my family: 

My mother and father, Capt. Perry Anderson, Retired United States Marine Corps 

and distinguished veteran and his loving wife Ann. Mom and Dad thank you for all 

of your support, love and encouragement. My wonderful wife Sarah and our newest 

member of the Anderson clan, Jordan. I also want to recognize Commissioner Hal 

Creel who used to work on this Committee, former Commissioner Ming Hsu and 

many of the staff from the agency. Thank you all for your support. 

As the independent regulatory agency responsible for overseeing ocean borne 

transportation in U.S. foreign commerce, the Federal Maritime Commission works 

to ensure a fair and competitive environment in which carriers, shippers, and other 

stakeholders can operate with a minimum of government intervention, while being 

protected from unfair foreign shipping practices. Working within its statutory 

framework, the Commission has developed a regulatory system that allows for necessary oversight with minimal disruption to the efficient flow of U.S. foreign commerce. 

As this Committee knows first-hand, maritime shipping is a dynamic and changing industry. During the past 5 years, the number of 20-foot containers coming into 

37 

United States ports has increased dramatically, from 11 and one-half million TEUs 

in 2001, to almost 20 million TEUs in 2006. This rapid increase in trade volume 

has highlighted the need to address improvements to our Nation’s transport infrastructure. In addition, since September 11, 2001, we have recognized the importance 

of securing our ocean transportation system, while maintaining the free flow of 

trade. 

While the FMC is not on the front line of ensuring the security of our ocean borne 

commerce, we are committed to helping front-line security agencies ensure the safe 

and efficient movement of cargo to and from the United States. In this regard, the 

Commission’s oversight of ocean common carriers, marine terminal operators, and 

its licensing and bonding of ocean transportation intermediaries (‘‘OTIs’’), is a vital 

link in the effort to protect our Nation’s seaports. 

During my career I have worked in several regulated industries, including 9 years 

in the maritime sector with an international, diversified transportation company. 

This experience, combined with leadership in education, economic development, and 

community service, has prepared me for my current role as FMC Commissioner, and 

has given me an understanding of the issues facing the private sector in the maritime transportation business. I have had the opportunity to learn first-hand the importance of our maritime transportation system to our Nation’s economy. 

If confirmed by the Senate, I will continue to work to fairly and objectively fulfill 

the Federal Maritime Commission’s statutory responsibilities, while making every 

effort to listen to Commission stakeholders in order to reach balanced and well-informed decisions. 

Thank you, Mr. Chairman and distinguished Senators on the Committee and your 

staff, for your time and consideration. I appreciate the opportunity to appear before 

you today. If confirmed, I look forward to working with you and your staff as the 

Commission fulfills its statutory responsibilities. I will be happy to answer any 

questions that you may have for me at this time. 

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Alan Paul Anderson. 

2. Position to which nominated: Federal Maritime Commissioner. 

3. Date of Nomination: August 2, 2007. 

4. Address (List current place of residence and office addresses): 

Residence: Information not released to the public. 

5. Date and Place of Birth: September 16, 1959; Beaufort, South Carolina. 

6. Provide the name, position, and place of employment for your spouse (if married) and the names and ages of your children (including stepchildren and children 

by a previous marriage). 

Sarah Marlene Anderson, Head Coach, St. Thomas Aquinas High School; Chase 

Kulp, 20; Jordan Paul Anderson, 1 day old. 

7. List all college and graduate degrees. Provide year and school attended. 

Harvard University’s John F. Kennedy School of Government, 1997, Program 

for Senior Managers in Government. 

University of Florida, Bachelor of Science, 1982 attended 1979–1982. 

Menlo College, Menlo Park, CA attended 1978. 

8. List all post-undergraduate employment, and highlight all management-level 

jobs held and any non-managerial jobs that relate to the position for which you are 

nominated. 

Commissioner, Federal Maritime Commission. 

Vice President, Public Affairs and Government Relations, JM Family Enterprises, Inc. 1994–2003. 

Director, Public Affairs, Hvide Marine, Inc. 1987–1994. 

Field Director, Bob Martinez for Governor, 9/86–12/86. 

Special Assistant, United States Senator Paula Hawkins, 1983–1984, 1984– 

1986. 

Press Secretary, U.S. Congressman Connie Mack Campaign, 1984. 

Van Poole for U.S. Senate Campaign, 1982. 

9. Attach a copy of your re ́sume ́. A copy is attached. 

38 

10. List any advisory, consultative, honorary, or other part-time service of positions with Federal, State, or local governments, other than those listed above, within the last 5 years. 

United States Senator Connie Mack Academy Advisory Board, 1989–2000. 

Broward Community College Board of Trustees, 1999–2003. 

Broward County Port Director Search Committee, 2003. 

11. List all positions held as an officer, director, trustee, proprietor, agent, representative, or consultant of any corporation, company, firm, partnership, or other 

business, enterprise, educational, or other institution with the last 5 years. 

Chairman, Board of Trustees, Broward Community College. 

Chairman, Board of Directors, Broward Alliance. 

Vice President, JM Family Enterprises, Inc. 

Southeast Toyota Distributors LLC. 

World Omni Financial Corporation, Inc. 

JM&A, Inc. 

Fidelity Insurance, Inc. 

Board of Directors, Giant Holdings, Inc. 

Board of Directors, Landmark Bank, 2000–2003. 

Broward Education Foundation, 2002–2003. 

Orange Bowl Committee, member, 2000–present. 

Tower Club, member, 1994–present. 

Broward Navy Days, Founder, member, Board of Directors, 1991–2003. 

Museum of Discovery & Science, member, Board of Directors, 1996–2003. 

Junior Achievement of South Florida, member, Board of Directors, 1998–2003. 

Coral Ridge Country Club, 2000–present. 

U.S. Senator Connie Mack’s Academy Advisory Board, 1989–2000. 

Public Affairs Council, member, Board of Directors, 1998–2003. 

Florida Chamber of Commerce, member, Board of Governors, 1998–2003. 

Florida Tax Watch, member, Board of Directors, 2000–2003. 

Deliver the Dream, Founding Board member, 2000–2004. 

Board of Directors, Public Affairs Council, 1995–2003. 

12. Please list each membership you have had during the past 10 years or currently hold with any civic, social, charitable, educational, political, professional, fraternal, benevolent or religious organization, private club, or other membership organization. Include dates of membership and any positions you have held with any organization. Please note whether any such club or organization restricts membership 

on the basis of sex, race, color, religion, national origin, age, or handicap. 

Memberships: 

Broward Community College Board of Trustees, 1999–2003. 

Chair, Board of Trustees 1999–2000, Vice Chair, 2000–2001. 

Broward Alliance, member, Board of Directors, 1997–2003. 

Chair, Board of Directors, 2002–2003, Vice Chair, 2001–2002, Secretary, 2000– 

2001, Treasurer, 1999–2000. 

Broward Education Foundation, Board of Directors, 2002–2003. 

Orange Bowl Committee, member, 2000–present. 

United States Propeller Club, Washington, D.C., 2003–present. 

Potomac Yacht Club, 2005–present. 

U.S. Naval Institute, 2000–2006. 

Smithsonian Institute, 1994–present. 

Tower Club, member, 1994–present. 

Broward Navy Days, Founder and member, Board of Directors, 1991–2003, 

member 2003–present. 

Deliver the Dream, Founding Board member, 2000–2004. 

Museum of Discovery & Science, member, Board of Directors, 1996–2003. 

Junior Achievement of South Florida, member, Board of Directors, 1998–2003. 

39 

Coral Ridge Country Club, 2000–present. 

U.S. Senator Connie Mack’s Academy Advisory Board, 1989–2000. 

Public Affairs Council, member, Board of Directors, 1998–2003. 

Florida Chamber of Commerce, Board of Governors, 1998–present. 

Florida Tax Watch, member, Board of Directors, 2000–2003. 

George W. Bush for President Finance Committee, 2000. 

Jeb Bush for Governor Finance Committee, 1994, 1998, 2002. 

Floridian’s for School Choice, member, Board of Directors, 1999–2003. 

S.W.I.M. Fort Lauderdale, member, Board of Directors, 2000–2003. 

Fort Lauderdale Chamber of Commerce, member, Board of Trustees, 1995– 

2000. 

American Waterways Operators, Chair, Public Affairs Committee, 1992–1994. 

Port Everglades Association, member, 1987–1994. 

13. Have you ever been a candidate for and/or held public office (elected, nonelected, or appointed)? If so, indicate whether any campaign has any outstanding 

debt, the amount and whether you are personally liable for that debt. 

I have never been a candidate for public office. 

14. Itemize all political contributions to any individual, campaign, organization, 

political party, political action committee, or similar entity of $500 or more for the 

past 10 years. Also, list all offices you have held with, and service rendered to, a 

state or national party or election committee during the same period. 

Tom Gallagher for Senate Campaign, $1,000. 

Tom Gallagher for Chief Financial Officer Campaign, $500. 

Jeb Bush for Governor: 1994—$500; 1998—$1,000; 2002—$1,000. 

George Bush for President, $2,000. 

Straight Talk Express PAC, 2006—$1,000. 

Bush Cheney 2004, $250. 

Charlie Crist for Governor, $500. 

Tom Gallagher for Governor, $500. 

I was an Alternate Delegate to the 1996 Republican National Convention representing Broward County, Florida. I served as Finance Co-Chair of the Jeb Bush 

for Governor Finance Committee on his 1994, 1998 and 2002 campaigns. I served 

on U.S. Senator Connie Mack’s Finance Committee in 1998 and 1994. Additionally, 

I served on Tom Gallagher for Insurance Commissioner Finance Committee in 2000 

and Tom Gallagher for Chief Financial Officer in Florida in 2002. In my capacity 

as Vice President of Government Relations I have participated in the RNC Eagle’s 

and Team 100 program, the National Republican Congressional Committee, the 

Democratic Congressional Campaign Committee, the Democratic Senatorial Campaign Committee, the Republican Senatorial Campaign Committee, the Republican 

Governor’s Association, the Southern Legislative Conference, the National Conference of State Legislators and the American Legislative Exchange Council. I 

served as Treasurer of the JM Family Associates Political Action Committee from 

1994–2002. 

15. List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals, and any other special recognition for outstanding service or 

achievements. 

United States Coast Guard Distinguished Civilian Award, 2000. 

Paul Anderson Appreciation Day, Broward County Commission, December 10, 

2002. 

Broward Navy Days Freedom Award, 1997. 

Public Affairs Institute, First Fellow, 2002. 

Outstanding Young Men of America, 1987. 

Recognized as one of South Florida’s most powerful and important business and 

civic leaders as featured in the ‘‘Power Issue’’ of South Florida CEO, April 2003. 

South Florida CEO magazine’s June 2002 featured Business Executive; University of Florida College of Journalism’s Communigator Magazine Spring 2006 featured Alumni. 

16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relVerDate Nov 24 2008 06:50 Apr 11, 2012 Jkt 073668 PO 00000 Frm 00043 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\73668.TXT SCOM1 PsN: JACKIE
40 

evant to the position for which you have been nominated. Do not attach copies of 

these publications unless otherwise instructed: None. 

17. Please identify each instance in which you have testified orally or in writing 

before Congress in a governmental or nongovernmental capacity and specify dates 

and the subject matter of each testimony: None. 

18. Given the current mission, major programs, and major operation objectives of 

the department/agency to which you have been nominated, what in your background 

or employment experience do you believe affirmatively qualifies you for appointment 

to the position for which you have been nominated, and why do you wish to serve 

in that position? 

I am currently serving as Commissioner of the Federal Maritime Commission 

since 2003. Previously, I served for 10 years in the senior management of JM Family Enterprises, a multi-billion dollar corporation and one of the largest privately 

held corporations in America. I believe the combination of my education and career 

has qualified me to serve on the Federal Maritime Commission. My 9 years in the 

maritime industry, where I worked for a diversified international maritime transportation company with tanker, offshore supply vessel, tug and barge and tugboat 

operations, combined with my involvement with major maritime trade associations 

has given me the necessary experience to serve in the capacity as Commissioner. 

Additionally, my extensive leadership in the community has given me a strong belief 

in public service and giving back to community and country. 

19. What do you believe are your responsibilities, if confirmed, to ensure that the 

department/agency has proper management and accounting controls, and what experience do you have in managing a large organization? 

I will faithfully execute the responsibilities of a Commissioner and the goals set 

forth by the Agency and the laws enacted by Congress for the Commission. Having 

served in the capacity as an officer of over two dozen private and public corporations, educational institutions, associations and other organizations has fully prepared me to successfully manage the agency. I was elected Chairman of the Board 

of Trustees of one of America’s largest community colleges with over 50,000 students 

and a $120 million annual budget. I also was elected and served as Chairman of 

the Board of Directors of The Broward Alliance, a public-private agency and one of 

the leading economic development agencies in the state of Florida. I also served in 

the executive management of JM Family Enterprises, LLC; ranked by Forbes as the 

13th largest privately held company in the United States. During this time I directly managed a multi-million dollar annual budget for almost 10 years. Additionally, I have had extensive experience with developing and managing budgets and 

will use my professional and leadership experience in managing the agency. 

20. What do you believe to be the top three challenges facing the department/ 

agency and why? 

Managing the agency’s responses to changes taking place in global maritime 

transportation; the tremendous growth of international trade and the stress on the 

agency’s ability to fulfill its mission under the press of increased business and regulation; dealing with the changes taking place between the Untied States’ trading 

partners and their changing regulations. 

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. Please include information related to retirement accounts. 

I have a retirement annuity earned for service at JM Family Enterprises, LLC. 

This annuity will commence at age 65 in the amount of [redacted] per month. 

2. Do you have any commitments or agreements, formal or informal, to maintain 

employment, affiliation, or practice with any business, association or other organization during your appointment? None 

3. Indicate any investments, obligations, liabilities, or other relationships, which 

could involve potential conflicts of interest in the position to which you have been 

nominated: None 

4. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated: Not that I am aware 

of. 

5. Describe any activity during the past 10 years in which you have been engaged 

for the purpose of directly or indirectly influencing the passage, defeat, or modification of any legislation or affecting the administration and execution of law or public 

policy. 

41 

Yes. In my position as Vice President of Public Affairs for JM Family Enterprises 

my responsibility was to advocate on behalf of the company at the local, state and 

Federal Government positions consistent with the goals of the corporation. I participated in the advocacy of issue related campaigns in the ballot initiative process in 

Florida and the Florida legislative process. These include pro tort reform legislation 

that has been introduced in the Florida legislature over the past decade. I was a 

proponent of anti-tax increases in tax reform legislation during the 2002 Florida legislative session and a 2002 ballot initiative; I was a leading advocate and leader for 

increase in state funding for Take Stock in Children, a mentoring program for at 

risk youths over the past decade in the Florida Legislature; I was an advocate for 

increase in state funding for the Florida Community College system; I participated 

in advocacy for workforce development and economic development in the Florida legislature; and I played a leadership role in the expansion for the Fort LauderdaleHollywood International Airport. 

6. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to above items. 

While I am not aware of any conflicts, if one were to arise I would seek advice 

of agency counsel and if advised would recluse myself or take appropriate actions 

to resolve the conflict. 

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? No. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority of any Federal, State, county, or municipal entity, other than for a minor traffic offense? No. 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? None 

that I am aware of. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any violation other than a minor traffic offense? No. 

5. Have you ever been accused, formally or informally, of sexual harassment or 

discrimination on the basis of sex, race, religion, or any other basis? No. 

6. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination: Did 

not answer. 

D. RELATIONSHIP WITH THE COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by Congressional committees? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

Congressional witnesses and whistleblowers from reprisal for their testimony? Yes. 

3. Will you cooperate in providing the Committee with requested witnesses, including technical experts and career employees with firsthand knowledge of matters 

of interest to the Committee? Yes. 

4. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

RE ́SUME ́ OF A. PAUL ANDERSON

Professional Experience 

August 2003–Present—Federal Maritime Commission—Washington, D.C. 

Commissioner 

Nominated by President George W. Bush on April 10, 2003 and unanimously 

confirmed by the U.S. Senate on May 22, 2004 to serve a 5-year term as Commissioner of the Federal Maritime Commission. Responsibilities include voting 

on issues impacting the trillion dollar international maritime industry; public 

speaking and representing the Agency before industry groups, associations and 

corporations; and working with industry and government leaders. The Commission, an independent Federal regulatory agency, is responsible for implementing 

the Ocean Shipping Reform Act of 1998 and for setting maritime policy on the 

regulation of the international trades of the United States. Additional responsibilities include: management of Agency operations, budget and operations; 

business planning and visioning; making decisions and determinations in the 

disposition of docketed cases; rulemaking; and ensuring the efficient, equitable, 

42 

and expeditious resolution of all other matters arising under statutes administered by the Commission. 

Sept. 1994–April 2003—JM Family Enterprises, Inc.—Deerfield Beach, FL 

Vice President Public Affairs 

Responsibilities included advocacy, on behalf of the company and CEO, for positions consistent with the goals of the corporation before local, state, Federal and 

international governments. Developed and managed a state and national government relations program including a corps of state and Federal lobbyists, 

while also serving as an advisor to the Chairman and CEO on strategic policy 

issues impacting the company’s operations. Reported directly to the Chairman 

and CEO of this $7.7 billion diversified automobile company ranked by Forbes 

magazine as the 15th largest privately held corporation in the United States. 

Among the company’s core businesses are financial services, automobile distribution, automobile lease finance, insurance, chemical manufacturing, automobile retail sales and parts distribution. A primary responsibility was the 

management of a diverse range of legislative efforts in multiple state legislatures and in Congress in support of the company’s strategic goals resulting in 

millions of dollars of operational and financial efficiencies. In support of these 

efforts, I managed lobbyist, law firms and consultants in multiple states and 

Washington, D.C. Tasked by the CEO to develop strategic relationships with 

national and Florida corporate, government and community leaders while implementing a national branding of the company with these leaders. Additional 

duties required shared responsibility for a national community relations program and philanthropy. Served on business, professional and nonprofit Boards 

of Directors in support of the company’s goals and objectives. 

Jan. 1987–Sept 1994—Hvide Marine, Inc.—Fort Lauderdale, FL 

Director. Public Affairs 

Responsible for all government, regulatory, political and public affairs for this 

international diversified international marine transportation company which operates tankers, offshore supply vessels, tug and barge and tugboats in the international and domestic maritime markets. The company now operates as 

Seabulk, Inc. Position required Congressional testimony and regulatory agencies, business and financial presentations, coordination of business development 

projects. During tenure also held positions of National Manager of Marketing 

and Assistant to the President Additional responsibilities included corporate 

business and strategic planning, community relations, preparation for board 

meetings, crisis management team and trained facilitator. Developed, managed 

and implemented a national branding, marketing and sales campaign for this 

start-up subsidiary, American Tank Testing, Inc., which successfully concluded 

with the sale of the company to a fortune 200 company. Required developing 

and managing national sales force, corporate and convention sales strategy, and 

implementation of government procurement program. 

Sept. 1986–Jan. 1987—Bob Martinez for Governor—Miami, FL 

Field Director—South Florida 

May 1986–Sept 1986—Tom Gallagher for Governor—Miami, FL 

Campaign Travel Aide/Assistant Press Secretary 

Nov. 1984–June 1986—United States Senator Paula Hawkins—Miami, FL 

District Representative/Special Assistant 

June 1984–Nov. 1984—United States Congressman Connie Mack—Fort Myers, 

FL 

Press Secretary/Assistant Campaign Manager 

Dec. 1982–June 1984—United States Senator Paula Hawkins—Washington, D.C. 

Special Assistant 

Education 

1982—University of Florida, College of Journalism and Communications—Gainesville, FL 

Bachelor of Science, Public Relations, Minor in Marketing 

1997—Harvard University’s John F. Kennedy School of Government—Cambridge, 

MA 

Senior Managers in Government Program 

The Senior Managers in Government program provides senior executives in the 

Federal Government, and private sector with the cutting-edge skills needed for 

43 

their continued success. Renowned Kennedy School faculty members help participants enhance the core leadership skills needed to direct organizations with 

governmental and public sector concerns. The course focuses on several complex 

management issues faced by senior managers including managing risk, managing change, negotiation, leadership and policy analysis. 

2001—Public Affairs Institute—Washington, D.C. 

Program for Senior Public Affairs Executives 

This is a three-year program for senior executives from the public and private 

sector in the study of public affairs, crisis management, issues management and 

Federal and state legislative program management. Program’s first distinguished fellow. 

Recognition and Awards 

Public Affairs Institute, First Fellow, 2002. 

Paul Anderson Appreciation Day, Broward County Commission, December 10, 

2002. 

United States Coast Guard Distinguished Civilian Award, 2000. 

Broward Navy Days Freedom Award, 1997. 

Outstanding Young Men of America, 1987. 

Recognized as one of South Florida’s most important business and civic leaders 

as featured in the ‘‘Power Issue’’ of South Florida CEO, April 2003. 

South Florida CEO magazine’s June 2002 featured Business Executive. 

University of Florida College of Journalism’s Communigator Magazine Spring 

2006 featured Alumni. 

Leadership Experience 

1999–2003 Broward Community College (BCC), Chairman, Board of Trustees. This is a 

gubernatorial appointment and senate confirmed position by Governor Jeb 

Bush in 1999. Upon my appointment I was elected and served as Chairman 

from 1999–2001, and Vice Chairman from 2001–2002, of the fifth largest community college in the United States with five campuses, 50,000 students and 

a $100 million plus annual budget. During my tenure I was responsible for 

the policy oversight of the College’s reaffirmation of accreditation, the hiring 

process of a new President, a collective bargaining agreement with faculty 

union, and growth of the BCC Foundation. 

1999–2001 Broward Alliance, Inc., Chairman, Board of Directors. This multi-million dollar corporation is Broward County’s (a county of 1.6 million citizens) privatepublic partnership for economic development. Among the accomplishments 

under my leadership were leading a search for a new CEO, a renewed commitment for public funding from county government, and the growth of private investment by corporate partners. Among other successes were the implementation of a minority business development program, expanded international trade development program and a partnership for a regional marketing plan for South Florida’s economic development. I also held the positions of Secretary, Treasurer and Vice Chairman from 1996–1999. 

1998–2003 Public Affairs Council, Board of Directors. The Public Affairs Council is the 

leading association for public affairs professionals. Its mission is to advance 

the field of public affairs and to provide tools and resources that enable public 

affairs executives and managers to achieve their business and professional 

goals. I also served on the Council’s accreditation committee. 

2000–2002 Florida Community College Trustees Association, Vice Chairman, Secretary/ 

Treasurer. During my tenure I served as a leading advocate of Florida Community College Trustees and Florida’s community college system before the 

state legislature and administration. My efforts resulted in legislation increasing funding and matching dollars for Florida’s 28 community colleges. 

2000–2003 Giant Holdings, Inc., Landmark Bank, NA, Board of Directors. Giant Holdings 

is a holding company for Landmark Bank NA, a community bank in Broward 

County, Giant Bank, an Internet component of Landmark; and Web United, 

Inc., a web hosting and technology company. 

2000–2003 Take Stock in Children, Operating Committee. At the request of Governor Jeb 

Bush and the Chairman of Take Stock. I served on the Operating Committee 

of this nationally recognized statewide mentoring and scholarship organization. My primary responsibility was managing legislative efforts which secured state appropriations totaling over $15 million dollars for this organization serving Florida’s at-risk community. 

44 

2000–2004 Deliver the Dream, Founding Member, Board of Directors. At the request of 

JM Family’s CEO I served as a founding member of the Board of Directors 

and on the Finance and Board Development Committees of this nonprofit organization serving families in crisis. 

1991–2003 Broward Navy Days, Founding Member, Board of Directors. Co-founded this 

501(c)3 naval support organization which has grown to the 2nd largest fleet 

week in the United States celebration honoring U.S. naval services in the 

United States. 

1999–2003 Jeb Bush Classic, Co-Chairman. Successfully developed this golf tournament 

into a five-city, statewide event that has raised over $5 million for MS (muscular sclerosis). 

2000–2004 Orange Bowl Committee, Member. The Orange Bowl Committee is a not-forprofit, 317-member, all-volunteer organization supporting and producing activities and events which enhance the image, economy, and culture of South 

Florida Among the OBC core events are the Orange Bowl Festival, FedEx Orange Bowl and World-Class Halftime Show, the MetroPCS Orange Bowl Basketball Classic, the Orange Bowl PATCH Beach Bash presented by the City of 

Hollywood, the Miller Light Orange Bowl Tailgate Party, Boston Market Orange Bowl Youth Football Championships and the Orange Bowl Cheer & 

Dance Championships. 

1997–2003 Florida Chamber of Commerce, Board of Governors. 

2000–2003 Florida Tax Watch, Board of Directors. 

1996–2003 Museum for Discovery & Science, Board of Directors. 

2001–2003 Broward Education Foundation, Board of Directors. 

1995–2000 Fort Lauderdale Chamber of Commerce, Board of Trustees. 

1998–2003 Junior Achievement of South Florida, Board of Directors. 

1990–1994 American Waterways Operators Board of Directors; Chairman, Public Affairs 

Committee. 

1988–1994 Port Everglades Association, Board of Directors. 

Government Experience 

1990–1994 Broward County Consumer Affairs Board 

1989–2000 United States Senator Connie Mack Academy Advisory Board 

The CHAIRMAN. I thank you very much, Mr. Anderson. 

Before we proceed, I’d like to recognize and congratulate Molly 

Gower. You brought your whole family, I would assume, your potential in-laws are in your favor. 

[Laughter.] 

Mr. KRESS. I certainly hope so. The signals are good so far. 

The CHAIRMAN. And we are most honored to have in our midst, 

a war hero. Welcome, sir, we salute you. 

If I may ask, Mr. Kress, you have had good experience in the 

U.S. Trade and Development Agency, how can you use that experience in the maritime world? 

Mr. KRESS. Thank you. 

The focus of the U.S. Trade and Development Agency is on supporting economic development projects overseas, and supporting 

U.S. exports of goods, services and technologies. And part of that 

is transportation projects, so I have worked on a number of transportation projects, including in the maritime area. I’ve had the opportunity to visit ports, see equipment in action and so on, so I’m 

familiar with a lot of the port development issues that are being 

faced in developing countries and middle-income countries that we 

work with. These issues are actually very similar to those that 

we’re dealing with here, in terms of congestion, security, environment and so on. 

So, specifically, the projects that I’ve worked on in that area will 

put me in good standing for examining the issues here. Also as a 

general matter, in terms of looking at trade, understanding the 

45 

needs of U.S. manufacturers, and how the trade flows are going in 

and out, I think this experience gives me a strong background for 

executing my responsibilities, if confirmed, as a Commissioner. 

The CHAIRMAN. I ask that question because there are some who 

suggested that you were not a sailor, but you do have experience 

in the maritime world. 

Mr. KRESS. Yes. 

The CHAIRMAN. I thank you very much. 

And if I may ask Mr. Anderson, you’re scheduled to become 

Chairman of the Commission or you have been nominated for that 

position. We are now looking at the European Commission’s impending antitrust immunity guidelines for the liner shipping industry. What impact will that have on U.S. antitrust regulation? And 

what vision do you have for the FMC moving forward on that? 

Mr. ANDERSON. Thank you, Mr. Chairman. As you referenced, 

the European community has been involved for several years with 

deregulating the liner antitrust immunity in the European community. That is scheduled to take place in October of 2008, when that 

will become final. The—they are still engaged in the EU in promulgating the final regulations that will replace their set of antitrust 

immunity regulations that they are repealing. 

I think that it’s very important for the United States, as a leader 

in international trade in the world, to examine, after time, the results of their very bold move to remove this long-standing antitrust 

immunity, that both the EU and the United States have had in 

place in our foreign-borne commerce. And I think that it would be 

prudent for us to let them go through with their process, as a 

grand experiment of deregulating the industry. 

It’s very difficult to predict what may or may not happen in the 

industry, and that’s the reason I’m suggesting that we may be very 

well served by examining and looking at what they experience over 

the next several years in their process, before we make any 

changes to our regulations. 

But as you know, we enforce the laws enacted by this body and 

the U.S. House, and if instructed to make changes in our regulatory rules, we will do so. 

The CHAIRMAN. I thank you very much, Mr. Anderson. 

Senator Stevens? 

Senator STEVENS. What do each of you perceive to be your role 

as members of the Commission, with regard to the safety of our 

ports? 

Mr. KRESS. The Commission works cooperatively with Customs 

and Border Protection and Naval Intelligence and the Coast Guard 

and other agencies that are directly working on security matters. 

The Commission is in a position to support the integrity of the supply chain, through licensing various actors in the supply chain, and 

so has an opportunity to make sure that we understand who is 

working and moving goods in and out of the United States, and can 

share that information with other agencies to make sure that there 

is a secure and safe process. 

The Commission works particularly closely with Customs and 

Border Protection, there is an MOU with the Customs Service for 

information sharing, and otherwise works cooperatively with the 

46 

other agencies to make sure that procedures that the ports and the 

shippers are following are as secure as possible. 

Senator STEVENS. I thank the Chairman for bringing both up at 

the same time. I think it’s better to have you each answer the same 

question, if you would? 

Mr. ANDERSON. Yes, sir. Thank you. That’s a very appropriate 

question, and I am just going to expand on some of the areas that 

Mr. Kress answered. 

The Commission, while we’re not sitting as a front-line security 

agency, we do have a role in the security of our intermodal supply 

chain in the marine transportation sector. We license and bond all 

of the people that are handling cargo for the large shippers in the 

world, both international and domestic. And as such, we have area 

representatives that are in our field offices around the country, 

that are working to examine whether or not these companies that 

are filing for a license at the Commission, if they do have the necessary experience. We’re checking out their offices to make sure 

they are who they say they are. 

And that particular area, I think that’s an area that the Commission can continue to expand upon, and an area that, you know, we 

should be very engaged with the people that are handling the paperwork for the cargo that’s coming in and out of our country. We 

do the best that we can with a very limited staff and field offices. 

And, I think it’s a very important role. 

We have, as Mr. Kress mentioned, a Memorandum of Understanding. We do joint investigations with Customs, Naval Intelligence, and the Coast Guard. And I have spoken with your staff 

about some opportunities where we might be able to increase our 

areas of cooperation with those agencies to do more in the area of 

security. 

Senator STEVENS. That sounds good. 

We have visited periodically ports of the United States, such as 

Los Angeles, Seattle, and New York. Do you plan to visit some of 

these monster ports of ours? 

Mr. ANDERSON. I’ll take first crack at that. I am a big believer 

in going out and kicking the tires and actually getting in the ports. 

I’ve been to numerous ports around the country. I’ve been to LA/ 

Long Beach, just right after my first confirmation and being sworn 

in. I’ve been out there multiple times. I am from the Southern California area, originally. Those two ports make up 40 percent of all 

the containers coming into and out of the country. 

Additionally, as I mentioned, I worked in the largest container 

port in Florida, which is Port Everglades in Fort Lauderdale. I 

have visited numerous ports. It’s very important for us to see the 

actual workings of the Port Authorities, not only their security 

side, but the transportation infrastructure that facilitates the 

movements of cargo and intermodal transportation. I’ve done that 

as well with MARAD representatives. We visited, not only marine 

terminals, but rail terminals, and also met with truckers and all 

of the interested parties that move the goods in and out of our 

ports. Because those are all critical in the entire supply chain of 

our country. 

Senator STEVENS. Mr. Kress? 

47 

Mr. KRESS. Yes. I would agree wholeheartedly with Mr. Anderson there. And particularly, looking at my past experience with the 

U.S. Trade and Development Agency, of going out and actually seeing the projects and project proposals in action or where they are 

likely to happen, including who the actors are, is very different 

from hearing presentations in the office and receiving e-mails and 

so on. 

So, I would see going out and visiting those ports to be a critical 

opportunity to meet with all the right people, meet the different interested parties, see the infrastructure, and so on, to be able to 

make better decisions on all the matters that come before the Commission. 

Senator STEVENS. Well thank you. Having visited those areas, I 

came to the conclusion that while we’re developing the kind of 

knowledge we need to run the ports, we really have not done much 

about the transportation infrastructure that interlocks with those 

ports. For instance, coming out of the Los Angeles Port, there is 

just one railroad with one track. 

You’re right, 40 plus percent of the goods for the whole country 

come through that port, but there’s only one railroad and one track. 

And no one’s ever paid much attention to it, but it does seem to 

me that someone ought to get on top of that and try to figure out 

how to change that. But the technology-base for the ports is all on 

the water. The mainland side of these ports have just been neglected. I don’t know if that comes under the jurisdiction of the 

FMC, but I put it on the table for you to consider. I do think the 

technology-base, handling the goods once they’re on shore, is as important as that, dealing with unloading the cargo and loading the 

cargo onto those islands. 

But, I do thank you for your willingness to serve. We look forward to seeing you from time to time here and we should have, I 

think, a periodic report from your Commission. And I wish you 

well. 

Thank you, Mr. Chairman. 

The CHAIRMAN. I thank you, Mr. Kress and Mr. Anderson, for 

your willingness to serve. And, may I announce that the record will 

be kept open for 10 more days, if you do have any changes you’d 

like to make in your statements or your responses, feel free to do 

so. And we will be submitting further questions, if we may, and we 

look forward to your responses. 

Thank you very much, and the hearing is adjourned. 

[Whereupon, at 3:30 p.m., the hearing was adjourned.] 

(49) 

A P P E N D I X 

RESPONSE TO WRITTEN QUESTION SUBMITTED BY HON. DANIEL K. INOUYE TO

CARL B. KRESS

Question. In your testimony you mention your experience with port related matters as an employee of the U.S. Trade and Development Agency. What specific experience do you have with the shipping industry? 

Answer. Throughout my 6 years at the U.S. Trade and Development Agency 

(USTDA), first as Chief of Staff and Senior Advisor to the Director and later as Regional Director for the Middle East, North Africa, and South Asia (MENASA), I 

have worked on a wide variety of matters designed to address shipping industry 

needs, primarily in the areas of security, safety, and supply chain efficiency. If I am 

confirmed, I plan to draw upon this experience as I work with the shipping industry 

to ensure a fair, secure, safe, and efficient maritime system. 

As I indicated in my testimony, USTDA’s mission is to support economic development overseas through the application of U.S. goods, services, and technologies, 

thereby spurring economic growth overseas and bolstering U.S. exports and supporting U.S. jobs. USTDA projects are designed to create mutually beneficial partnerships, where foreign project sponsors, such as shipping and transportation entities and customs and port authorities, seek to work with U.S. companies and U.S. 

Government technical agencies like the Maritime Administration, the National 

Oceanographic and Atmospheric Administration, and the Department of Homeland 

Security (DHS). All such activities have at their core the goal of facilitating infrastructure improvements overseas, with a particular focus on projects whose sponsors 

are especially interested in U.S. solutions for project implementation. USTDA accomplishes its mission through funding various types of activities, such as projectspecific feasibility studies and technical assistance, and conferences and Orientation 

Visits (reverse trade missions) that provide opportunities for foreign project sponsors 

to gain exposure to U.S. technical expertise and technology. 

As Chief of Staff and Senior Advisor to the Director from 2001–2004, I was responsible for ensuring the execution of the Director’s policies. This involved participating in the development of all projects and initiatives, taking part in their planning and final approval, and working with program staff to facilitate their successful implementation. Subsequently, as Regional Director for MENASA, I was directly 

responsible for developing and implementing all activities within that region. 

Following 9/11, the Director called for a sharpened focus on transportation sector 

security and safety. To ensure effectiveness in implementing this policy, we immediately began working with the U.S. Coast Guard, the Customs Service, and the 

U.S. private sector in targeting opportunities to support requests from our trading 

partners for information about U.S. security requirements, and about potential U.S. 

solutions for meeting their security, safety and supply chain efficiency needs. Because of the magnitude of U.S. trade with Asia, we increased shipping sector activities in that region. I worked directly with all regional teams in developing and implementing projects under this agency priority initiative. 

For example, we supported the Secure Trade in the APEC Region (STAR) Initiative that was launched following 9/11, by sponsoring a conference in Thailand to 

help APEC country companies and policymakers develop new approaches to trade 

security and safety. Conference session topics included maritime and supply chain 

security, which focused on methods of expediting the movement of goods and people 

while adding new security layers. Senior representatives of the International Maritime Organization, World Customs Organization, U.S. Customs Service and Coast 

Guard, the Global Alliance for Trade Efficiency, and senior government officials and 

company representatives from all APEC countries took part. 

Further supporting STAR objectives, we established the Secure Trade in the 

APEC Region—Bangkok/Laem Chabang Efficient and Secure Trade Project, which 

supported a pilot for a secure supply chain between the Ports of Laem Chabang, 

Thailand and Seattle, Washington. This pilot showed the feasibility of establishing 

50 

a secure, end-to-end supply chain using existing technology and processes between 

those two ports. 

We also funded technical assistance to develop STAR-related seafarers’ identification systems in the Philippines and Indonesia, which we considered to be particularly important projects because these two countries are the world’s top suppliers 

of seafarers to ocean-going carriers. Our assistance supported the countries’ efforts 

to implement improved national Seafarers Identity Document Systems that would 

comply with International Labor Organization requirements. 

As a further targeted effort to improve shipping safety and security, we provided 

ISPS Code training to customs, port, and shipping officials in APEC countries to 

support human capacity building and spur appropriate infrastructure improvements 

necessary under their ISPS Code obligations. ISPS Code compliance was likewise 

a prominent topic at USTDA’s Transportation Security Forum Conference in Cairo, 

Egypt in 2004, which was put on in cooperation with DHS and was supported by 

the International Federation of Freight Forwarders Associations and the World Customs Organization. The event brought together public and private sector representatives from Africa, the Middle East, and South Asia to review U.S. and international 

trade security initiatives, identify ongoing trade and transport security projects in 

the participating countries, and highlight technologies and procedures aimed at facilitating more secure and efficient movement of goods. 

We also developed and implemented two Orientation Visits that exposed foreign 

shipping and port officials to U.S. equipment, facilities, and procedures in Louisiana, Texas, and California. The first brought a Chinese delegation to the United 

States to view inland river operations in the Mississippi Delta and the Los Angeles 

and Long Beach Port complexes. U.S. participants included American Commercial 

Lines, LLC, Gulfship Maritime, Inc., and Transoceanic Shipping Company, Inc. The 

second visit brought delegates from Brazil, Columbia, and Ecuador to Louisiana and 

California to explore U.S. solutions for their modernization and expansion plans. 

U.S. participants in this activity included Gulfship Maritime, Inc. and Intermarine 

Inc., as well as the Ports of Houston, Long Beach, Los Angeles, New Orleans, and 

South Louisiana. 

In 2004, I became the Regional Director for the MENASA Region and took direct 

responsibility for developing programs that address shipping industry interests in 

my countries. For example, immediately upon taking over the region, I began planning the USTDA Transportation Solutions for South Asia Trade conference in 

Mumbai, India, which highlighted best practices for intermodal transportation, with 

presentations by U.S. service and technology providers. Participants included senior 

officials from the U.S. Department of Transportation as well as shipping, port, and 

transportation representatives from all South Asian countries. 

I was also responsible for Orientation Visits bringing government officials and 

shipping industry representatives in 2005 from Morocco, Algeria, and Pakistan to 

New Jersey, Florida, Virginia, and Texas to learn about U.S. technologies and procedures for oil spill response and recovery. That same year we also held further ISPS 

Code training with the U.S. Coast Guard, in Tunisia for representatives from Algeria, Egypt, Jordan, Lebanon, Morocco, Oman, Tunisia, the United Arab Emirates, 

and Yemen. 

Recently, I worked with U.S. technical experts in developing and providing port 

security technical assistance regarding ISPS Code, Customs-Trade Partnership 

Against Terrorism, and Container Security Initiative compliance for the Moroccan 

Tangier-Med project, which encompasses a new deep-sea harbor and new container 

and cargo terminals. The concessionaire for the first container terminal is MaerskAkwa, a joint venture with 90 percent ownership by the Maersk Group. 

In sum, throughout my 6 years at USTDA I have been actively involved in a wide 

variety of activities designed to address shipping industry needs, particularly with 

respect to increased security, safety, and supply chain efficiency. This experience 

has given me a clear understanding of the complexity of these issues and the importance of coordinated efforts among the many stakeholders, including carriers, shippers, customs and security officials, ports, consumers, and exporters. Melding effectively the economic, security, environmental, and safety needs inherent to the shipping industry is a challenging task, and, if confirmed, I look forward to working successfully with the shipping industry to facilitate fair, safe, and secure maritime 

transportation. 

51 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. BARBARA BOXER TO

CARL B. KRESS

Question 1. Traditionally the Federal Maritime Commission’s mandate has been 

fairly narrow—to consider only if transportation costs increase or transportation 

services decrease with any water-borne and port commerce proposal. But in the case 

of the Port of LA/Long Beach, it is no longer possible for the port to continue to 

grow without substantial environmental mitigation. I believe, as do many in California, that the Commission must now take into account a broader range of considerations when looking at port plans. 

Answer. Section 6(g) of the Shipping Act requires the Commission to evaluate 

agreements among marine terminal operators or ocean common carriers to determine whether they would be likely, by a reduction in competition, to produce an unreasonable reduction in transportation service or an unreasonable increase in transportation cost. As you point out, the port and shipping agreements that the Commission reviews encompass a range of important issues, not simply their impact on 

costs and service availability. I believe that the Commission’s analysis of such agreements should take these broader issues, such as an agreement’s potential impact on 

the environment, into account as a part of the Commission’s analysis. Accordingly, 

I believe the appropriate question under section 6(g) is whether a reduction in service or increase in costs is reasonable, considering all of the relevant circumstances. 

Question 2. Do you feel the Federal Maritime Commission should consider new 

factors such as existing or potential environmental, safety and security risks when 

conducting an anti-trust analysis of a port plan to address emissions? 

Answer. Yes. I believe that the Commission can and should consider such factors 

in deciding whether an agreement to reduce emissions is reasonable under section 

6(g) of the Shipping Act. I believe that in order to determine whether an agreement 

is substantially anti-competitive under the Shipping Act, the Commission should 

take a broad approach that considers potential impacts on the environment, safety, 

and security, in addition to potential consequences for transportation service availability and cost. 

Question 3. Has the Federal Maritime Commission considered these factors in the 

past? 

Answer. The Commission previously evaluated an agreement by West Coast Marine Terminal Operators to implement PierPASS, a program that charges a fee to 

port users during peak hours to encourage more visits during off-peak hours, which 

I understand was aimed specifically at reducing congestion at the Ports and has 

been considered a success. Accordingly, given this explicit purpose, it is my understanding that the Commission considered the potential benefits under these factors 

in its determination that the increase in transportation costs due to the peak-hour 

fee was reasonable. 

Question 4. Do you agree the air quality situation in at the ports in California, 

particularly at the Ports of LA/Long Beach has reached a critical level in regards 

to public health? 

Answer. Yes. I experienced the air quality in Los Angeles first-hand when I lived 

there for 3 years while attending law school, and have read reports describing the 

poor air quality in the region and how it poses a grave health risk to Southern California residents. I believe that improving air quality in the ports, and in the region 

as a whole, must be a key priority. 

Question 5. It is my understanding that recently, some of the shipping lines and 

the retail companies that ship through our ports filed objections to the efforts being 

undertaken in the state to develop a plan to control emissions on the basis of potential cost increases. What actions, if any, has the FMC taken at this time on those 

objections? 

Answer. No formal petitions or complaints have been filed with the Commission 

regarding the proposed Clean Trucks Program being considered by the Ports of Long 

Beach and Los Angeles. However, the Commission has received two letters—a joint 

letter from the Pacific Merchant Shipping Association and the National Industrial 

Transportation League, and a letter from the Intermodal Motor Carriers Conference—asserting that the program would violate certain provisions of the Shipping 

Act. Press reports indicate that the Commission has been closely following developments at the ports on these matters, and I see that the Commission held a closed 

meeting on November 28, 2007 to discuss the proposed Clean Trucks Program. It 

is my understanding that the two letters did not object to any plans by the State 

of California to reduce emissions, such as rules being considered by the California 

Air Resources Board to set emissions levels for all drayage trucks throughout California. 

52 

Question 6. What role do you see for the FMC playing in the development and 

implementation of ports plan to reduce emissions at the Ports of LA/Long Beach? 

Answer. The Ports of Los Angeles and Long Beach have an agreement filed with 

the Commission that allows them to discuss ways to reduce port-related emissions 

under their Clean Air Action Plan. Under the Shipping Act, the Commission has 

an obligation to monitor activities under this agreement to ensure compliance with 

the Act. Additionally, because they are marine terminal operators, both ports are 

also required to comply with certain provisions of the Shipping Act even if they are 

acting separately. Therefore, the Commission has a role to play in determining 

whether actions by these ports, and any other marine terminal operators, are consistent with Shipping Act requirements. If confirmed, I look forward to working with 

all of the parties as they together strive to craft innovative approaches that address 

Southern California’s needs with respect to emissions and congestion reduction. 

Æ