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[Senate Hearing 115-880]
[From the U.S. Government Publishing Office]

                                                        S. Hrg. 115-880

                             NOMINATION TO
                    THE FEDERAL TRADE COMMISSION AND
                    THE SURFACE TRANSPORTATION BOARD

=======================================================================

                                HEARING

                               BEFORE THE

                         COMMITTEE ON COMMERCE,
                      SCIENCE, AND TRANSPORTATION
                          UNITED STATES SENATE

                     ONE HUNDRED FIFTEENTH CONGRESS

                             SECOND SESSION
                               __________

                             APRIL 11, 2018
                               __________

    Printed for the use of the Committee on Commerce, Science, and 
                             Transportation
                             
                             
                  [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]                             

                Available online: http://www.govinfo.gov

                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE
                    
57-802 PDF                 WASHINGTON : 2025   

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                     ONE HUNDRED FIFTEENTH CONGRESS

                             SECOND SESSION

                   JOHN THUNE, South Dakota, Chairman
ROGER WICKER, Mississippi            BILL NELSON, Florida, Ranking
ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
TED CRUZ, Texas                      AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska                RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska                 EDWARD MARKEY, Massachusetts
DEAN HELLER, Nevada                  TOM UDALL, New Mexico
JAMES INHOFE, Oklahoma               GARY PETERS, Michigan
MIKE LEE, Utah                       TAMMY BALDWIN, Wisconsin
RON JOHNSON, Wisconsin               TAMMY DUCKWORTH, Illinois
SHELLEY MOORE CAPITO, West Virginia  MAGGIE HASSAN, New Hampshire
CORY GARDNER, Colorado               CATHERINE CORTEZ MASTO, Nevada
TODD YOUNG, Indiana                  JON TESTER, Montana
                       Nick Rossi, Staff Director
                 Adrian Arnakis, Deputy Staff Director
                    Jason Van Beek, General Counsel
                 Kim Lipsky, Democratic Staff Director
              Chris Day, Democratic Deputy Staff Director
                      Renae Black, Senior Counsel

                            C O N T E N T S

                              ----------                              
                                                                   Page
Hearing held on April 11, 2018...................................     1
Statement of Senator Thune.......................................     1
    Support letter dated March 12, 2018 to Hon. John Thune, Hon. 
      Bill Nelson, Hon. Deb Fischer, and Hon. Gary Peters from 21 
      members of the fertilizer and agribusiness community.......    54
    Support letter dated April 10, 2018 to Hon. John Thune and 
      Hon. Bill Nelson from agricultural producers and 
      agribusinesses.............................................    54
    Support letter dated May 23, 2017 to Hon. Donald J. Trump 
      from Ann Warner, Executive Director, Freight Rail Customer 
      Alliance...................................................    56
    Support letter dated March 26, 2018 to Senator John Thune and 
      Senator Bill Nelson from E. Michael O'Malley, President, 
      Railway Supply Institute...................................    57
    Support letter dated April 10, 2018 to Chairman John Thune 
      from Chris Keuleman, Vice President, Global Government 
      Relations, International Paper.............................    58
    Support letter dated April 11, 2018 to Hon. John Thune and 
      Hon. Bill Nelson from Tyler White, President, Kentucky Coal 
      Association................................................    58
Statement of Senator Nelson......................................     2
    Prepared statement...........................................     2
Statement of Senator Wicker......................................    37
Statement of Senator Cortez Masto................................    39
Statement of Senator Cantwell....................................    41
Statement of Senator Markey......................................    43
Statement of Senator Inhofe......................................    45
Statement of Senator Heller......................................    47
Statement of Senator Peters......................................    49
Statement of Senator Blunt.......................................    51

                               Witnesses

Hon. Charles Schumer, U.S. Senator from New York.................     4
Rebecca Joy Kelly Slaughter, Nominee to be a Commissioner, 
  Federal Trade Commission.......................................     7
    Prepared statement...........................................     8
    Biographical information.....................................     9
Michelle A. Schultz, Nominee to be a Member, Surface 
  Transportation Board...........................................    13
    Prepared statement...........................................    14
    Biographical information.....................................    15
Patrick J. Fuchs, Nominee to be a Member, Surface Transportation 
  Board..........................................................    22
    Prepared statement...........................................    24
    Biographical information.....................................    25

                                Appendix

Response to written questions submitted to Rebecca Joy Kelly 
  Slaughter by:
    Hon. John Thune..............................................    61
    Hon. Roy Blunt...............................................    61
    Hon. Jerry Moran.............................................    62
    Hon. Dan Sullivan............................................    62
    Hon. Amy Klobuchar...........................................    63
    Hon. Richard Blumenthal......................................    63
    Hon. Brian Schatz............................................    66
    Hon. Tom Udall...............................................    68
Response to written question submitted to Michelle A. Schultz by:
    Hon. Dan Sullivan............................................    69
    Hon. Dean Heller.............................................    69
    Hon. Bill Nelson.............................................    70
    Hon. Amy Klobuchar...........................................    71
    Hon. Richard Blumenthal......................................    71
    Hon. Tammy Baldwin...........................................    71
Response to written question submitted to Patrick J. Fuchs by:
    Hon. Dan Sullivan............................................    72
    Hon. Dean Heller.............................................    73
    Hon. Bill Nelson.............................................    73
    Hon. Amy Klobuchar...........................................    75
    Hon. Richard Blumenthal......................................    75
    Hon. Tammy Baldwin...........................................    76

 
                             NOMINATION TO
                    THE FEDERAL TRADE COMMISSION AND
                    THE SURFACE TRANSPORTATION BOARD

                              ----------                              

                       WEDNESDAY, APRIL 11, 2018

                                       U.S. Senate,
        Committee on Commerce, Science, and Transportation,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10 a.m. in room 
SR-253, Russell Senate Office Building, Hon. John Thune, 
Chairman of the Committee, presiding.
    Present: Senators Thune [presiding], Inhofe, Wicker, Blunt, 
Heller, Fischer, Gardner, Sullivan, Nelson, Cantwell, Tester, 
Markey, Peters, Hassan, and Cortez Masto.

             OPENING STATEMENT OF HON. JOHN THUNE, 
                 U.S. SENATOR FROM SOUTH DAKOTA

    The Chairman. Well, good morning. Today we welcome three 
well-qualified nominees to testify before the Senate Commerce 
Committee. The nominees before us today have been nominated to 
two important independent agencies, Becca Slaughter, to be a 
Commissioner at the Federal Trade Commission, and Michelle 
Schultz and Patrick Fuchs, to be Members of the Surface 
Transportation Board.
    Thank you, Ms. Slaughter, Ms. Schultz, and Mr. Fuchs, for 
your willingness to serve, and thank you to your families for 
your presence here today.
    I also want to congratulate Ms. Slaughter on the most 
recent addition to her family, a little girl who was born only 
last week.
    The FTC oversees competition and consumer protection across 
large segments of the U.S. economy. Congress originally created 
the FTC as an independent agency in 1914 to address the problem 
of monopolies and trusts, but its role has evolved to include 
its modern-day consumer protection mission, a mission that will 
likely continue to grow as new technologies emerge in the 21st 
century marketplace.
    Ms. Slaughter has been nominated to become a Commissioner 
at the FTC. She is a graduate of Yale College as well as Yale 
Law School, and the majority of her career has been right here 
on Capitol Hill working for Senate Minority Leader Chuck 
Schumer. Throughout her time on Capitol Hill, she has developed 
a reputation as a talented staffer with an ability to work 
across the aisle. This will serve her well at the FTC.
    The STB is responsible for the regulatory oversight of our 
Nation's freight rail network. In states like South Dakota, 
where farmers and businesses depend on rail service to get 
their products to market, the STB plays a critical role in 
ensuring access to reliable and efficient rail service for 
large and small shippers alike.
    Ms. Schultz is an exceptionally well-qualified nominee for 
the STB, having worked at the Southeastern Pennsylvania 
Transportation Authority, or SEPTA, for the past 11 years. She 
currently serves as Deputy General Counsel and, in that role, 
is responsible for advising SEPTA on complex regulatory, 
statutory, and administrative law matters at the local, State, 
and Federal level. Relevant to this Committee, Ms. Schultz 
provided guidance to the U.S. Senate on compliance issues 
involving the Federal mandate for positive train control 
implementation for public passenger transportation.
    Finally, Patrick Fuchs has served on this in an invaluable 
role as a senior professional staff member for me on this 
Committee for the past 3 years. His extensive knowledge of the 
transportation industry, especially with respect to rail 
operations, as well as his insight into the legislative 
process, has been instrumental to this Committee's work.
    During his time serving this Committee, Patrick drafted and 
played a critical role in the successful passage of the Surface 
Transportation Board Reauthorization Act, the first 
reauthorization of the Board since its creation. The bill 
included important changes for agricultural producers and 
businesses, establishing the STB as a fully independent agency, 
directing the STB to set shorter timelines for reviewing rate 
cases and providing the agency with the ability to proactively 
resolve problems before they escalate into larger disputes by 
conducting investigations on the agency's own initiative. The 
Act also sought to promote collaboration among the Board 
members by allowing them to discuss agency matters with one 
another with proper disclosure.
    Patrick was also instrumental in drafting many other 
important pieces of legislation, including the FAST Act and the 
first passenger rail reauthorization in over 7 years. Prior to 
working on the Committee, Patrick served as a policy analyst on 
transportation and security matters at the Office of Management 
and Budget.
    Those of us who have had the opportunity to work with 
Patrick have seen firsthand how incredibly capable and talented 
he is.
    I am confident that the Surface Transportation Board will 
be extremely well served by Patrick's experience, expertise, 
and dedication, and while we will certainly miss his hard work 
on the Commerce Committee, I know he is looking forward to 
serving on the STB.
    And we have our Chairman, Ann Begeman, here today, who is 
anxious, I think, probably to get a full complement of folks to 
work with her over there on the Board.
    As I've noted, all three of these nominees are 
exceptionally well qualified to serve the Nation in the 
positions to which they've been nominated. They have all 
demonstrated their dedication to working on the important 
issues facing our country, and I look forward to their swift 
confirmation.
    Once again, I want to thank you all for testifying today, 
for your willingness to fill these important positions, to your 
families for being here, and for their willingness to support 
you.
    And I will now turn to our Ranking Member, Senator Nelson, 
for any opening remarks.

                STATEMENT OF HON. BILL NELSON, 
                   U.S. SENATOR FROM FLORIDA

    Senator Nelson. Mr. Chairman, since I'm filler until 
Senator Schumer gets here, do you want to me kind of speak in a 
slow southern draw?
    [Laughter.]
    The Chairman. That would be--that would be good.
    Senator Nelson. Mr. Chairman, I also want to extend a warm 
welcome to the three nominees. Last month, we had a hearing for 
four of the nominees to the FTC, and I'm pleased that we 
finally have the fifth nominee to the agency, Rebecca Kelly 
Slaughter. Ms. Slaughter gave birth to a daughter, Pippa, just 
about 9 days ago.
    The FTC is a small agency with a critical mandate 
protecting consumers from unfair or deceptive acts or 
practices. They go after robocallers that harass consumers and 
boiler room scams that try to rip off seniors. In addition, 
they make sure that multibillion dollar tech companies protect 
personal data and ensure that they follow their privacy 
policies regarding the sharing of that data.
    And, sadly, as we heard at yesterday's hearing with 
Facebook, protecting privacy does not always happen, and the 
consequences can be grave. And right now, under the law, the 
FTC is, in fact, charged with that responsibility, and that 
subject came up more than a couple of times in yesterday's 
hearing.
    Now, thankfully, we have a nominee here today that is up to 
addressing this very important task. Ms. Slaughter currently 
serves as Chief Counsel to Senator Schumer, to the minority 
leader. Now, Ms. Slaughter, since he got an 800 on his SAT and 
a perfect score on his LSAT, I want you to tell us what it's 
like being Chief Counsel.
    [Laughter.]
    Senator Nelson. She has certainly served in that position 
as trusted advisor on antitrust, technology, privacy, consumer 
protection issues.
    And, Senator Schumer, I started out purposely slowly 
because I was the filler between this and you getting here, but 
you're already here.
    So I will insert the rest of my opening comments, Mr. 
Chairman, and----
    [The prepared statement of Senator Nelson follows:]

   Prepared Statement of Hon. Bill Nelson, U.S. Senator from Florida
    Mr. Chairman, let me also extend my warm welcome to the three 
nominees we have here today for positions on two critical independent 
agencies.
    Last month, we had a hearing for four of the nominees to the 
Federal Trade Commission, and I am pleased that we finally have the 
fifth nominee to the agency--Rebecca Kelly Slaughter. Ms. Slaughter 
gave birth to a daughter, Pippa, not nine days ago.
    The FTC is a small agency with a critical mandate--protecting 
consumers from ``unfair or deceptive acts or practices.''
    They go after robocallers that harass consumers and boiler room 
scams that try to rip off seniors.
    In addition, they make sure that multi-billion-dollar tech 
companies protect personal data and ensure that they follow their 
privacy policies regarding the sharing of that data.
    Sadly, as we heard at yesterday's hearing with Facebook, protecting 
privacy does not always happen. And the consequences of that can be 
grave.
    Thankfully, we have a nominee here today that is up to addressing 
this herculean task.
    Ms. Slaughter currently serves as chief counsel to Minority Leader 
Schumer. In that position, she has served as his trusted advisor on 
antitrust, technology, privacy and consumer protection issues.
    The Surface Transportation Board is also a vital independent agency 
that helps ensure we have a strong and efficient rail network to move 
freight throughout the United States.
    This sixty billion industry dollar that generates more than two 
hundred thousand jobs moves more freight than any other freight rail 
system in the world.
    As we know all too well in the state of Florida, the railroad 
industry is an important part of our economy.
    Without reliable and cost-effective rail service, my state and our 
Nation would not be able to compete in the global market.
    Our rail network also serves an important role by providing 
passenger rail service. Such service requires good on-time performance 
so that people can get to where they need to be when they need to be 
there.
    In Florida, we are striving to restore passenger service along the 
Gulf Coast. Since Hurricane Katrina, there has been no passenger rail 
service along the coast.
    This critical service would improve accessibility for more than two 
million residents between Louisiana and Florida that includes a growing 
senior population.
    It also would benefit tourism and the economy for towns and cities 
along the Florida Panhandle.
    At some point, the Surface Transportation Board may need to weigh 
in on Gulf Coast passenger service, and I hope the witnesses today 
recognize the importance of that rail service.
    To both the nominees for the Surface Transportation Board, I 
appreciate your willingness to serve in these critical transportation 
positions.
    I particularly want to thank Patrick Fuchs [FOEKS] for his work on 
Chairman Thune's side of the Commerce Committee.
    Mr. Fuchs has been an important partner in helping to establish 
bipartisan freight and passenger rail legislation. His questionnaire 
notes that his nickname is PACO.
    His assistance during the FAST Act helped to establish the first 
passenger rail reauthorization in a surface transportation bill.
    And I now look forward to hearing from the witnesses and our 
Minority Leader Chuck Schumer.

    The Chairman. Thank you, Senator Nelson. And we're very--
want to welcome, glad to be joined this morning by the Democrat 
leader in the U.S. Senate, Senator Chuck Schumer, from New 
York, who is here to make an important introduction, and 
probably talks a little differently than the Senator from 
Florida.
    Senator Schumer. A lot of my constituents speak just like--
--
    [Laughter.]
    The Chairman. Well, and a lot of your constituents are his 
constituents for the winter months, too, so----
    [Laughter.]
    The Chairman. Senator Schumer, welcome. Thank you for being 
here.

              STATEMENT OF HON. CHARLES SCHUMER, 
                   U.S. SENATOR FROM NEW YORK

    Senator Schumer. Thank you. Thank you, Mr. Chairman. Thank 
you, Senator Nelson, Senator Wicker, Senator Cortez Masto. 
First, thank you for having this hearing the day after 
yesterday's. I hope this hearing is a little shorter and a 
little less controversial than the one you had yesterday, where 
I thought you all did a good job, for whatever that's worth.
    And let me also say it's my pleasure to introduce the next 
nominee to be the FTC--to be a Federal Trade Commissioner, 
Rebecca Kelly Slaughter.
    As the Committee is no doubt aware, Rebecca has served on 
my staff for nearly 10 years. She started out as Rebecca Kelly, 
ended up as Rebecca Kelly Slaughter. One of my few regrets 
about Rebecca is it was not one of these famous Schumer 
marriages. She married somebody outside the staff.
    [Laughter.]
    Senator Schumer. But, anyway, but a very fine man, who is 
here as well.
    As the Committee is no doubt aware, she had been with me a 
long time. Her first stint in my office came when she spent the 
summer interning during law school. I doubt it was ever her 
intention to stay 10 years that summer. Our Chief Counsel, 
though, thought so highly of her that after her internship had 
ended, he asked her if she was available to stay on to assist 
in the nomination of a Supreme Court Justice. Rebecca could 
have informed him she was at Yale Law School and a bit busy at 
the moment, but, instead, she promptly took leave of absence 
from school to assist our office.
    After graduating from law school and a spell at a 
prestigious law firm, she rejoined my staff, where she served 
as Counsel and eventually as Chief Counsel. In that time, she 
worked and made great progress on issues ranging from robocalls 
to patent trolls, intellectual property, consumer protection. 
As a member of my Judiciary Committee staff, she played an 
integral role in the confirmation of judicial nominations, 
including several Supreme Court Justices. The Federal bench in 
Upstate New York, in particular, is more talented and more 
diverse because of Rebecca's great work.
    What stands out about Rebecca is her shining intellect and 
ability to puzzle out solutions to the most complex of 
problems. She has always worked on issues dominated by 
competing interests, the great issues of privacy versus 
security, which have wracked our Republic from its founding, 
between freedom and commerce, and appropriate restraints to 
protect consumers and defend against monopoly.
    As I said, these questions are as old as the Republic 
itself, and it was their messy intersection that Rebecca's 
quality came to the fore, not only to understand the 
intricacies of the law as it relates to complex subjects, but 
to actually find a balance, bringing competing stakeholders 
together to forge compromise. She works--would work so 
diligently on issue after issue after issue, and every so often 
I'd get a call at 10 p.m., ``I think I found a solution that 
Cornyn's staff will go along with.''
    [Laughter.]
    Senator Schumer. Indeed, she has been able to work across 
the aisle for years to make bipartisan progress. She would 
rather build consensus than cross swords, and it's that 
quality, in addition to her expertise and her intellect, that 
makes her so qualified for the FTC, where consumer protection, 
privacy, and antitrust issues demand finding a delicate balance 
within the law, and between Commissioners from different 
stations on the political spectrum.
    Rebecca has proven time and time again that she's a tough 
but fair negotiator who can get things done, which I know is 
something this Committee cares a lot about in its own actions, 
and she will take those skills to fight for American consumers.
    Outside these walls, and it shows you her resilience, she's 
the mother of three beautiful children. I love it when they 
come visit the office. Her son Teddy--wave, Teddy.
    [Laughter.]
    Senator Schumer. Her daughter Eloise.
    [Laughter.]
    Senator Schumer. And her little new baby, Pippa, who Justin 
has, who is 9 days old. So it shows you her strength and 
resilience. Here she is with little Pippa. Her real name is 
Philippa, Philippa Hope Slaughter. They're getting rid of the 
``Kelly,'' not so good.
    [Laughter.]
    Senator Schumer. They're with her today. Now, I'm sure in a 
few years, Pippa will join Teddy and Ellie in their love for 
the song ``Hamilton,'' the soundtrack ``Hamilton.'' They love 
it. They sang it to me.
    [Laughter.]
    Senator Schumer. Teddy and Ellie are particularly fond of 
the song where Thomas Jefferson tells Alexander Hamilton, ``You 
don't have the votes.''
    [Laughter.]
    Senator Schumer. I ask respectfully they hold off on 
singing that one until their mother has cleared the Committee.
    [Laughter.]
    Senator Schumer. My esteemed colleagues, it's difficult for 
anyone to reflect upon a decade of public service. I argue that 
I shouldn't have to because this Committee should give Rebecca 
the opportunity to continue to serve the American people on the 
FTC. The great loss our office will feel in her absence will be 
a great gain for her future colleagues on the FTC and the 
citizens of this country, who she will so well serve.
    I thank you for accommodating me and thank this Committee 
for the timely hearing for Rebecca.
    The Chairman. Thank you, Senator Schumer, for those great, 
very personalized remarks. I look forward to having her come 
forward.
    Senator Nelson, if Senator Schumer got a perfect score on 
the LSAT and an 800 on the SAT, does that make him smarter than 
Zuckerberg?
    [Laughter.]
    The Chairman. So we like went from one----
    Senator Schumer. I skipped my t-shirt today and wore a 
suit.
    [Laughter.]
    Senator Schumer. I will tell you a story because lest the 
audience think that I'm so smart. My first job was running a 
mimeo machine. Now, we older people know what a mimeo machine 
is; you younger people don't. But it was this clunky machine, 
and you type out stencils, put them on a cranking thing, and 
you crank it around, and a copy would come out. The ink smelled 
great. If we still had mimeo machines, we might not have to 
legalize marijuana.
    [Laughter.]
    Senator Schumer. But in any case, I ran the machine nights, 
days, and weekends for a Madison High School teacher--I went to 
James Madison High School--who was starting a new business. And 
what was the new business he was starting? He had this 
brilliant idea. He was preparing students for the SATs. What 
was his name? He was then just a Madison High School teacher. 
Kaplan. And it became a big business, which he sold to the 
Washington Post years later.
    But nights, weekends, and holidays, I would run the 
machine. We got an electric machine the second year, and I read 
the preparatory materials over and over and over again. And 
that's the reason I got all these 800s. I'm the first person to 
prove--it was a big debate then--that it is not aptitude, but 
achievement. So it's not because I'm so smart, it's because I 
had to work in that little grindy room for 3 years running a 
mimeo machine.
    [Laughter.]
    The Chairman. OK. Bring back the mimeograph or whatever it 
is.
    [Laughter.]
    The Chairman. Anyway, thank you, Senator Schumer.
    Senator Schumer. Thank you.
    The Chairman. We'll ask our nominees to come forward at 
this point.
    [Nominees coming forward.]
    The Chairman. Great. And we'll proceed on my left, and your 
right, starting with Ms. Slaughter, followed by Ms. Schultz, 
and Mr. Fuchs. So we'll look forward to hearing from you.
    Ms. Slaughter, please proceed.

   STATEMENT OF REBECCA JOY KELLY SLAUGHTER, NOMINEE TO BE A 
             COMMISSIONER, FEDERAL TRADE COMMISSION

    Ms. Slaughter. Thank you, Chairman Thune, Ranking Member 
Nelson, and members of this Committee. It's funny for me to sit 
on this side of the table, but I'm very excited to be here 
today. It is my profound pleasure and privilege to be 
considered to be a member of the Federal Trade Commission.
    I want to particularly thank your staffs for their hard 
work in processing paperwork to get my nomination onto today's 
hearing at the last minute. And I would like to acknowledge my 
fellow Commissioner nominees who are here in the audience 
today. I saw Joe Simons, Noah Phillips, Christine Wilson, and 
Rohit Chopra all here. I have very much enjoyed getting to know 
them, and I really look forward to working with them if I'm 
lucky enough to be confirmed.
    And, finally, I want to thank my boss, Senator Schumer, for 
his incredibly kind introduction, and humbling introduction, 
for the faith he has placed in me as a member of his staff, and 
especially in recommending me for this nomination.
    I would like to briefly introduce some of my friends and 
family who have joined me here today, without whose support I 
would be both literally and figuratively lost. My parents, Peg 
and Kevin Kelly, my Aunt Barbara Kummel, and my brother Matt 
Kelly all traveled here from New York. And perhaps, as you have 
heard, most conspicuously, my children are here. Teddy is five 
and a half, Eloise is three and a half, and as you heard, they 
are now happily joined by their brand-new baby sister, Pippa, 
who is about nine and a half days old.
    Balancing the joys of raising them and a challenging 
professional career is possible for me only because of the 
boundless love, support, and skill of my husband, Justin, 
himself a Senate staff alum.
    I also want to thank my many friends and colleagues who are 
in the audience today. I really appreciate their support.
    The Senate has been my professional home for nearly a 
decade. Over that time, I have had the honor of working with 
many members of this Committee and your staffs on a wide 
variety of legislative and oversight endeavors. I have strived 
to serve my boss and his constituents, the people of my home 
state of New York, doing work I find meaningful and important. 
And I've taken enormous pride and pleasure in being able to 
find opportunities to reach across the aisle and forge 
bipartisan consensus on challenging policy problems facing 
consumers and markets.
    The issues I have most enjoyed working on here in the 
Senate, the protection of consumers and the promotion of free 
and fair markets, are the ones at the heart of the mission of 
the Federal Trade Commission. Those issues have been important 
for the American people throughout the century the Commission 
has been in existence, but perhaps never more so than now.
    Today, technological innovations and rapidly changing 
markets pose new and daunting challenges to enforcement in both 
competition and consumer protection. I am humbled and honored 
to be considered to help continue the Commission's storied 
legacy of work for the American people, and I look forward to 
answering your questions.
    [The prepared statement and biographical information of Ms. 
Slaughter follow:]

  Prepared Statement of Rebecca Joy Kelly Slaughter, Nominee to be a 
                 Commissioner, Federal Trade Commission
    Chairman Thune, Ranking Member Nelson, and Members of this 
Committee, it is my profound pleasure and privilege to be here today in 
order for you to consider my nomination to be a member of the Federal 
Trade Commission. I want to particularly thank your staffs for their 
hard work in processing paperwork to get my nomination onto today's 
hearing panel. And I would like to acknowledge my fellow Commissioner 
nominees who are here in the audience. I have very much enjoyed getting 
to know them and really look forward to working with them if I am lucky 
enough to be confirmed. And finally, I want to thank my boss, Senator 
Schumer, for the faith he has placed in me as a member of his staff and 
especially in recommending me for this nomination.
    I would like to briefly introduce some of my friends and family who 
have joined me here today, without whose support I would be both 
literally and figuratively lost. My parents, my Aunt Barbara Kummel, 
and my brother Matt Kelly all traveled here from New York. And, perhaps 
most conspicuously, my children are here. Teddy is five and a half, 
Eloise is three and a half, and they are now happily joined by their 
brand new baby sister Pippa who is about nine and a half days old. 
Balancing the joys of raising them and a challenging professional 
career is possible for me only because of the boundless love, support 
and skill of my husband Justin--himself a Senate staff alum.
    The Senate has been my professional home for nearly a decade; over 
that time, I have had the honor of working with many of the members of 
this Committee and your staffs on a wide variety of legislative and 
oversight endeavors. I have strived to serve my boss and his 
constituents--the people of my home state of New York--doing work I 
find meaningful and important. And I have taken enormous pride and 
pleasure in being able to find opportunities to reach across the aisle 
and forge bipartisan consensus on challenging policy problems facing 
consumers and markets.
    The issues I have most enjoyed working on here in the Senate--the 
protection of consumers and the promotion of free and fair markets--are 
the ones at the heart of the mission of the Federal Trade Commission. 
Those issues have been important for the American people throughout the 
century the Commission has been in existence, but perhaps never more so 
than now. Today, technological innovations in rapidly changing markets 
pose new and daunting challenges to enforcement in both competition and 
consumer protection. I am humbled and honored to be considered to help 
continue the Commission's storied legacy of work for the American 
people, and I look forward to answering your questions.
                                 ______
                                 
                      a. biographical information
    1. Name (Include any former names or nicknames used):

        Rebecca Joy Kelly Slaughter
        Maiden name: Rebecca Joy Kelly
        Nickname: Becca

    2. Position to which nominated: Commissioner, Federal Trade 
Commission.
    3. Date of Nomination: April 9, 2018.
    4. Address (List current place of residence and office addresses):

        Residence: Information not released to the public.
        Office: United States Capitol, Office of the Democratic Leader, 
        S-211, Washington, D.C. 20510

    5. Date and Place of Birth: August 6, 1981; New York, NY.
    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: Justin Slaughter, Partner (non-equity) at Mercury 
        Strategies LLC

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

        B.A. Yale College 2003
        J.D. Yale Law School 2008

    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.

        Office of Senator Charles Schumer, Democratic Leader (2009 to 
        present, 2005-2006).
                I have served several roles in Senator Schumer's 
                office, starting as a law clerk and then Professional 
                Staff Member (2005-2006), then returning as a counsel 
                (2009-2011), then becoming Senior Counsel (2011-2014) 
                and finally Chief Counsel (2014 to present). In this 
                capacity, I have managed a policy portfolio focusing on 
                legal, technology, and regulatory policy in the areas 
                of FTC jurisdiction, including antitrust, consumer 
                protection, privacy and technology. As Chief Counsel, I 
                have also managed our small team of attorneys handling 
                areas within the jurisdiction of the Judiciary 
                Committee.

        Sidley Austin, Associate (2008-2009), Summer Associate (2007).

        Davis Polk & Wardwell, Summer Associate (2006).

        Manhattan District Attorney's Office, Appeals Bureau Paralegal 
        (2003-2004).

    9. Attach a copy of your resume.
    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 ten 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 ten years. None.
    12. Please list each membership you have had during the past ten 
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.

   NY State Bar Association--Member 2010-2011, currently 
        inactive

   Carderock Springs Swim and Tennis Club--Member, Summer 2017.

   Senate Employees Child Care Center (SECCC)--Member 2011 to 
        present.

   Yale Law Journal, Board Member (The Pocket Part Committee, 
        2007-2008)

   The Andrew Morehouse Trust--Regular Member 2004-present, 
        Board member 2004-2016.

    None of these groups restrict 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, non-elected, 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 ten 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.

        George A. Schrader, Jr. Prize for Excellence in the Humanities, 
        2003 Association of Yale Alumni Community Service Summer 
        Fellowship, 2000

    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.

        I have spoken several times--most recently in 2016--on panels 
        at the annual ChIPs Women in IP Conference on the topic of 
        emerging issues in law and technology policy.

        I spoke on a panel titled Women in Politics at the Brearley 
        School's alumnae weekend in May 2017.

        Note, Defensive Shootings and Error Risk: A Collateral Cost of 
        Changing Gun Laws?, 26 Yale L. & Pol'y Rev. 567 (2008).

    17. Please identify each instance in which you have testified 
orally or in writing before Congress in a governmental or non-
governmental 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?
    I have spent most of the last decade working for Senator Schumer on 
oversight of the Federal Trade Commission and policy matters within the 
jurisdiction of the FTC, including antitrust and consumer protection 
issues. In this capacity, I have become very familiar with the 
responsibilities of the FTC and have worked closely with the 
Commission.
    I am honored to be considered for the position of FTC Commissioner, 
because I believe firmly in its mission of protecting consumers and 
promoting competition. The issues under the jurisdiction of the 
Commission are critically important for American consumers and 
businesses. I would welcome the opportunity. to work with the other 
Commissioners, in both the majority and the minority, as well as the 
talented staff at the agency and members of this Committee and this 
body to help protect the American consumer and promote healthy and fair 
competition in the markets.
    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 believe every Commissioner has a duty to study carefully the 
statutorily delegated responsibilities of the Commission and to ensure 
that all actions the Commission undertakes are consistent with that 
delegation and with the responsible stewardship of taxpayer dollars.
    While I have not myself managed a large organization, I have been 
involved in oversight of the management of large Federal agencies for 
nearly ten years. That oversight work has included the Congressional 
review of agency spending and agency budget requests, as well as 
reports of management concerns at different agencies.
    20. What do you believe to be the top three challenges facing the 
department/agency, and why?
    One challenge facing the Commission is ensuring that enforcement 
efforts keep pace with emerging technologies. This challenge sounds 
across the full range of the FTC's mission, from competition to 
consumer protection. One specific example is in the area of unwanted 
spam phone calls, where technological innovations have allowed scam 
artists and unscrupulous businesses to evade the restrictions of the Do 
Not Call list. Privacy and data security enforcement also pose new 
technological challenges to the Commission. It is important for the 
Commission to adapt enforcement efforts to these new technologies while 
operating within the bounds of its statutorily mandated authority.
    A second challenge facing the Commission is effectively 
coordinating its enforcement efforts with other Federal agencies that 
share jurisdiction for some of the issues within the Commission's 
authority, including the CFPB, the FCC and the DOJ.
    Finally, a third challenge for the Commission is ensuring consumers 
know what FTC resources are available to them. Educating consumers and 
businesses about the FTC's mission and its resources should remain a 
top priority.
                   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. None.
    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. 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.
    In connection with the nomination process, I have consulted with 
the U.S. Office of Government Ethics and the Federal Trade Commission's 
Designated Agency Ethics Official to identify potential conflicts of 
interest. If confirmed, any potential conflicts of interest will be 
resolved in accordance with the terms of the ethics agreement that I 
have entered into with the Commission's Designated Agency Ethics 
Official. I am not aware of any other potential conflicts of interest.
    4. Describe any business relationship, dealing, or financial 
transaction which you have had during the last ten 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.
    In connection with the nomination process, I have consulted with 
the U.S. Office of Government Ethics and the Federal Trade Commission's 
Designated Agency Ethics Official to identify potential conflicts of 
interest. If confirmed, any potential conflicts of interest will be 
resolved in accordance with the terms of the ethics agreement that I 
have entered into with the Commission's Designated Agency Ethics 
Official. I am not aware of any other potential conflicts of interest.
    5. Describe any activity during the past ten 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.
    As an employee of Senator Schumer, my professional responsibilities 
have included work within the jurisdiction of the Judiciary and 
Commerce Committees on the drafting, negotiating, and passage of 
legislation, as well as oversight of Federal agencies.
    6. Explain how you will resolve any potential conflict of interest, 
including any that may be disclosed by your responses to the above 
items.
    In connection with the nomination process, I have consulted with 
the U.S. Office of Government Ethics and the Federal Trade Commission's 
Designated Agency Ethics Official to identify potential conflicts of 
interest. If confirmed, any potential conflicts of interest will be 
resolved in accordance with the terms of the ethics agreement that I 
have entered into with the Commission's Designated Agency Ethics 
Official. I am not aware of any other potential conflicts of interest.
                            c. legal matters
    1. Have you ever been disciplined or cited for a breach of ethics, 
professional misconduct, or retaliation by, or been the subject of a 
complaint to, any court, administrative agency, the Office of Special 
Counsel, professional association, disciplinary committee, or other 
professional group? If yes:

  a.  Provide the name of agency, association, committee, or group;

  b.  Provide the date the citation, disciplinary action, complaint, or 
        personnel action was issued or initiated;.

  c.  Describe the citation, disciplinary action, complaint, or 
        personnel action;

  d.  Provide the results of the citation, disciplinary action, 
        complaint, or personnel action.

    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.
    3. Have you or any business or nonprofit of which you are or were 
an officer ever been involved as a party in an administrative agency 
proceeding, criminal 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?
    If confirmed, I would work diligently with my fellow Commissioners 
to do so.
    2. Will you ensure that your department/agency does whatever it can 
to protect congressional witnesses and whistle blowers from reprisal 
for their testimony and disclosures?
    If confirmed, I would work diligently with my fellow Commissioners 
to do so.
    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.
                                 ______
                                 
                 Resume of Rebecca Joy Kelly Slaughter
Experience
Office of Senator Charles Schumer, Democratic Leader, Washington, D.C.
Chief Counsel June 2014 to present
Senior Counsel June 2011-June 2014
Counsel May 2009-June 2011
Professional Staff Member May 2005-May 2006

Provide strategic advice and directly engage on behalf of the 
Democratic Leader with other Senators, as well companies, stakeholders 
and constituents on portfolio of issues, including antitrust, privacy, 
consumer affairs, intellectual property, telecommunications, 
technology, national security, bankruptcy, nominations and oversight. 
Assist Leader with caucus strategy and preparation of legislation, 
statements, questions, and speeches on those topics, and coordinate 
with relevant government agencies, including FTC, DOJ, FCC, and the 
White House. Manage team of attorneys, clerks, and assistants.

Significant projects include: congressional reviews of mergers and 
antitrust investigations, such as American Airlines merger with U.S. 
Airways, AT&T attempts to acquire T-Mobile and Time Warner, Comcast 
acquisition of NBCU, e-books litigation, and FTC investigation into 
Google; elements of the ``Better Deal'' Democratic economic agenda, 
including proposals on antitrust and broadband expansion; congressional 
responses on net neutrality, broadband privacy, and other FCC 
regulations; passage into law of the Moran-Schumer BOTS Act of 2016, 
which provides FTC authority over deceptive ticket scalping techniques; 
advocacy for FTC investigations of privacy policies for consumer 
products such as smart TVs or home DNA kits; patent reform, ``including 
the Schumer-Kyl business method patents provision in the America 
Invents Act of 2011, and negotiation of a Schumer-Cornyn compromise 
bill; PATRIOT Act and FISA Amendments Act reauthorizations; 
confirmations of all Supreme Court Justices since 2005.

Sidley Austin, Washington, D.C.
Associate (Civil, Criminal, and Constitutional Litigation) September 
2008-May 2009
Summer Associate Summer 2007

Conducted legal research, prepared memoranda, and assisted with witness 
preparation and document review in connection with various litigation 
matters, including regulatory investigation of a public accounting 
firm. Wrote briefs and helped craft litigation strategy for an 
international development organization. Researched and drafted article 
on mass tort class action settlements.

Davis Polk & Wardwell, New York, N.Y. Summer 2006
Summer Associate. Researched legal issues in a variety of matters, 
including post-verdict motions in a white collar criminal case, an 
internal investigation of securities fraud, and a pro bono prisoner's 
rights settlement.

Manhattan District Attorney's Office, New York, N.Y. May 2003-August 
2004
Paralegal, Appeals Bureau. Provided support to Assistant District 
Attorneys in case research as well as brief drafting and filing. 
Coordinated Appeals Bureau Pro Bono Program.
Education
Yale Law School, New Haven, Connecticut. J.D. 2008.
Activities: Yale Law Journal, Editor (2006-2007), Board Member (The 
Pocket Part Committee, 2007-2008)
Head Teaching Assistant for Professor Akhil Amar (Constitutional Law)

Yale College, New Haven, Connecticut. B.A. with distinction in 
Anthropology, 2003.
Honors: magna cum laude; George A. Schrader, Jr. Prize for Excellence 
in the Humanities
Skills/Interests
TS clearance. Studied French, Spanish and Kiswahili. Enjoy crossword 
puzzles, travel; running and the outdoors.

    The Chairman. Thank you, Ms. Slaughter.
    Ms. Schultz.

   STATEMENT OF MICHELLE A. SCHULTZ, NOMINEE TO BE A MEMBER, 
                  SURFACE TRANSPORTATION BOARD

    Ms. Schultz. Thank you, Chairman Thune, Ranking Member 
Nelson, and distinguished members of the Commerce, Science, and 
Transportation Committee. I am honored to appear before you 
today as you consider my nomination as a Member of the Surface 
Transportation Board. I am also grateful to President Trump for 
his nomination.
    For over 11 years, I have dedicated my career to serving 
the public in various roles with the Southeastern Pennsylvania 
Transportation Authority, or SEPTA, the Nation's sixth largest 
provider of public transportation. While I currently serve as 
deputy general counsel to SEPTA, I have also served in a 
variety of roles touching on policy, legislation, and 
regulations. This has given me the opportunity to have a broad-
based understanding of railroad operations and the importance 
of the relationships the railroads share with their customers. 
I have also handled compliance issues at the local, State, and 
Federal levels pertaining to the construction of railroad lines 
and issues pertaining to interoperability. These experiences 
have given me a firm grasp of the challenges and opportunities 
facing the industry and the stakeholders that rely on it. I am 
very excited about the prospect of serving the public at the 
Federal level, as transportation is so vital to our citizens 
and the Nation's economy.
    Prior to joining SEPTA, I was a law clerk for the Superior 
Court of Pennsylvania and the United States Bankruptcy Court 
for the Eastern District of Pennsylvania. Additionally, I was 
an attorney at a large law firm in Philadelphia for 
approximately 5 years. My practice focused on creditors' rights 
and commercial litigation.
    As you are well aware, the Board is the economic regulator 
of the rail industry charged by Congress with resolving 
railroad rate and service disputes as well as proposed railroad 
mergers, among other issues. The efficiency of freight and 
intercity passenger rail transportation is vital to the 
Nation's mobility and economic competitiveness. While our 
Nation's rail system generally performs well, challenges arise 
due to numerous issues, including increased demand for service, 
track sharing, the ongoing need to maintain existing 
infrastructure, and the need for increased capacity.
    Because freight rail and intercity passenger rail serve an 
integral role in enhancing mobility within the United States, 
it is incumbent upon the Board to approach matters brought 
before it by conducting a thorough analysis of the facts and 
adjudicating matters in an impartial manner within the bounds 
of its jurisdiction and the law. If confirmed, I vow to utilize 
my transportation policy, regulatory, and legal experience to 
address the significant challenges presented to the Board in a 
fair and impartial manner.
    If confirmed, I look forward to furthering the Board's 
mission by working closely with the Board's staff, my fellow 
Board members, stakeholders, and members of this Committee to 
address the many important issues that come before the Board.
    Thank you for your time, and I look forward to answering 
any questions you may have.
    [The prepared statement and biographical information of Ms. 
Schultz follow:]

  Prepared Statement of Michelle A. Schultz, Nominee to be a Member, 
                      Surface Transportation Board
    Thank you Chairman Thune, Ranking Member Nelson, and distinguished 
Members of the Commerce, Science, and Transportation Committee. I am 
honored to appear before you today as you consider my nomination as a 
Member of the Surface Transportation Board (``Board''). I am also 
grateful to President Trump for his nomination.
    For over eleven years, I have dedicated my career to serving the 
public in various roles with the Southeastern Pennsylvania 
Transportation Authority (``SEPTA''), the Nation's sixth largest 
provider of public transportation. While I currently serve as Deputy 
General Counsel to SEPTA, I have also served in a variety of roles 
touching on policy, legislation and regulations. This has given me the 
opportunity to have a broad based understanding of railroad operations 
and the importance of the relationships the railroads share with their 
customers. I have also handled compliance issues at the local, state 
and Federal levels pertaining to the construction of railroad lines and 
issues pertaining to interoperability. These experiences have given me 
a firm grasp of the challenges and opportunities facing the industry 
and the stakeholders that rely on it. I am very excited about the 
prospect of serving the public at the Federal level, as transportation 
is so vital to our citizens and the Nation's economy.
    Prior to joining SEPTA, I was a law clerk for the Superior Court of 
Pennsylvania and the United States Bankruptcy Court for the Eastern 
District of Pennsylvania. Additionally, I was an attorney at a large 
law firm in Philadelphia for approximately five years. My practice 
focused on creditor's rights and commercial litigation.
    As you are well aware, the Board is the economic regulator of the 
rail industry charged by Congress with resolving railroad rate and 
service disputes as well as proposed railroad mergers, among other 
issues. The efficiency of freight and intercity passenger rail 
transportation is vital to the Nation's mobility and economic 
competitiveness. While our Nation's rail system generally performs 
well, challenges arise due to numerous issues including increased 
demand for service; track sharing; the ongoing need to maintain 
existing infrastructure; and the need for increased capacity. Because 
freight rail and intercity passenger rail serve an integral role in 
enhancing mobility within the United States, it is incumbent upon the 
Board to approach matters brought before it by conducting a thorough 
analysis of the facts and adjudicating matters in an impartial manner 
within the bounds of its jurisdiction and the law. If confirmed, I vow 
to utilize my transportation policy, regulatory, and legal experience 
to address the significant challenges presented to the Board in a fair 
and impartial manner. If confirmed, I look forward to furthering the 
Board's mission by working closely with the Board staff, my fellow 
Board Members, stakeholders, and the Members of this Committee to 
address the many important issues that come before the Board.
    Thank you for your time and I look forward to answering any 
questions that you may have.
                                 ______
                                 
                      a. biographical information
    1. Name (Include any former names or nicknames used):

        Michelle Albright Schultz (2003 to present)
        Michelle Mummert Albright (1972 to 2003)

    2. Position to which nominated: Member--Surface Transportation 
Board.
    3. Date of Nomination: March 2, 2018.
    4. Address (List current place of residence and office addresses):

        Residence: Information not released to the public.
        Office: Southeastern Pennsylvania Transportation Authority, 
        1234 Market Street, 5th Floor, Philadelphia, PA 19107.

    5. Date and Place of Birth: March 11, 1972; Hanover, Pennsylvania.
    6. Provide the name, position, and place pf employment for your 
spouse (if married) and the names and ages of your children (including 
stepchlidren and children by a, previous marriage).

        James D. Schultz (Spouse), Cozen O'Connor, Chair; Government 
        Law and Regulatory Affairs.

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

        Pennsylvania State University, BA English--1994

        Widener University School of Law, JD 1998

        University of Pennsylvania, MGA--2008

    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.

        Hanover Concrete Company--(8/98-12/99)

        Superior Court of Pennsylvania--Law Clerk (1/00-6/00)

        United States Bankruptcy Court--Law Clerk (7/00-1/02)

        White and Williams LLP--Associate. (1/02-8/06)

        Southeastern Pennsylvania Transportation Authority (8/06 to 
        present)
                Manager Legislative Affairs
                Director, Legislative Affairs
                Deputy General Cotmsel

        Management positions include serving as the Treasurer of 
        Gettysburg Concrete (1/96 12/99); Director of Legislative 
        Affairs (10/10-12/13); Deputy General Counsel (1/14 to 
        present).

    9. Attach a copy of your resume.
    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 ten years.
    Not applicable.
    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 ten years.

        General Partner--Tamarack Four
        Officer (Treasurer)--Gettysburg Concrete Company

    12. Please list each membership you have had during the past ten 
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.
    The Union League of Philadelphia. The club does not restrict 
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, non-elected, 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 ten years.
2008
Pennsylvania Future Fund ($1,000.00)
2009
Not applicable.
2010
Pennsylvania Future Fund $1,000.00 (February)
Friends of Tom Corbett $1,000.00 (June)
Friends of Tom Corbett $1,000.00 (July)
Friends of Tom Corbett $1,000.00 (October)
Friends of Jim Kernahan $500.00 (September)
2011
Pennsylvania Future Fund $1,000.00 (January)
2012
Not applicable.
2013
Not applicable.
2014
Not applicable.
2015
Pennsylvania Future Fund $1,000.00 (February)
Williams for Mayor $1,000.00 (March)
Keystone Alliance $1,000.00 (April)
Kevin Dougherty for Pennsylvania $1,000.00 (May)
Chris Christie for President $2,700.00 (December)
Friends of Pat Toomey $1,000.00 (January)
Friends of Bill Shuster $1,000.00 (April)
Keystone Alliance $1,000.00 (April)
Friends of Pat Toomey $1,000.00 (May)
Friends of Alex Charlton $1,000.00 (October)
Friends of Alex Charlton $1,000.00 (November)

    Also list all offices you have held with, and services rendered to 
a state or national political party or election committee during 
threesome period.
    Not applicable.
    15. List all scholarships, fellowships, honorary degrees, honorary 
society memberships, military medals, and any other special 
recognition. for outstanding service or achievements.
    In 2008 I was awarded the Stephen B. Sweeney Award, University of 
Pennsylvania for commitment to local government and public service.
    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.
    I have not authored any hooks, articles, columns, or publications.
    I have not given any speeches on any topics relevant to the 
position for which I have been nominated.
    17. Please identify each instance in which you have testified 
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each 
testimony,
    I have never testified before Congress.
    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?
    I have worked for the Southeastern Pennsylvania Transportation 
Authority (``SEPTA''), the Nation's sixth largest public transportation 
agency for over 11 years. During this time, I have become quite 
familiar with how railroads operate; how they interact with each other; 
and the relationships they have with their customers. lam also familiar 
with the challenges that are associated with those interactions. During 
my career with SEPTA, I have handled legislative, regulatory, and legal 
issues. I have also handled compliance issues at the local, state, and 
Federal level including issues pertaining to construction and 
reconstruction of commuter rail lines.
    Prior to joining SEPTA, I was a law clerk for the Superior Court of 
Pennsylvania, the United States Bankruptcy Court for the Eastern 
District of Pennsylvania. Additionally, I was an attorney at a law firm 
in Philadelphia. My practice focused on creditor's rights and 
commercial litigation.
    I have spent most of my career serving the public in the area of 
transportation policy, which is so vital to our citizens and our 
economy. Serving on the Surface Transportation Board will the allow me 
to continue my longstanding public service at the Federal level having 
greater impact on our country, utilizing my regulatory, legal, and 
transportation policy experience.
    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 member of the Surface Transportation Board, it will be 
incumbent upon me and my colleagues to set the tone for efficiency and 
decision making. I believe that my responsibilities would include 
reviewing the financial and business management of the Surface 
Transportation Board (``STB'') to ensure that it is in compliance with 
all laws and to promote the goal of efficiency. The STB is annually 
audited by an independent audit firm, subject to the Office of the 
Inspector General's oversight and in accordance with the generally 
accepted Government auditing standards. My responsibilities would also 
include implementing recommendations made by the independent audit 
firm.
    Relevant management experience includes my work managing a ready 
mixed concrete company; serving as the Director of Legislative Affairs 
and as Deputy General Counsel to SEPTA. In my role as Deputy General 
Counsel, I have handle compliance matters on behalf of the agency and 
the Board as well as budget matters on behalf of the division.
    20. What do you believe to be the top three challenges facing the 
department/agency, and why?
    The top three challenges facing the Surface Transportation Board 
(``STB'') appear to be as follows:
Rate Reasonableness and SAC Alternatives
    Since its predecessor agency, the Interstate Commerce Commission 
was established over a century ago, one of the most significant issues 
facing the STB is its review of railroad rates. The current process, 
stand-alone cost (``SAC'') is considered by many within the industry to 
be time consuming, complicated and costly. So important is this issue 
that Congress directed the Board in the Surface Transportation Board 
Reauthorization Act of 2015 to look at SAC alternatives, If confirmed, 
I will dedicate significant energy to support this effort by the Board 
to find manageable procedures that are fair to both railroads and 
shippers.
Regulatory Reform
    The Regulatory Reform Task Force was established to comply with 
Executive Order 13,777. The goals of the Regulatory Reform Task Force 
are to identify rules and practices that are burdensome, unnecessary, 
or outdated, and to recommend how they should be addressed. In May 
2017, the Regulatory Reform Task Force submitted its first status 
report. In July 2017 the Board held a listening session and received 
numerous comments. Upon the completion of the Regulatory Reform Task 
Force's work, I believe the Board should give careful consideration to 
the findings of both the Task Force and the comments by stakeholders to 
improve STB processes.
Pending Rulemakings
    The Board currently has on its docket pending rulemakings of 
significant importance to the various stakeholders in the railroad 
industry. These rulemakings include competitive switching, revenue 
adequacy, and commodity exemptions--important issues which I have only 
begun to study and which this Committee has been involved with for 
years. While I am not in a position to weigh in on the merits, I 
believe the stakeholders of the industry need finality on these 
proceedings. I look forward to working with the STB staff and 
stakeholders on these matters to help bring them to a conclusion.
                   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.
    General Partner in Tamarack Four. As stated in my GE Form 278e, and 
my Ethics Agreement, upon confirmation, I will resign from my position 
as a general partner of Tamarack Four and the entity will be reformed 
as a limited liability company. I will not hold a position with the new 
entity. For more detailed information please see both my OGE Form 278e 
and my Ethics Agreement.
    I own common stock in a closely held, family company (ready mix 
concrete manufacturer)--Trenton Group Inc. and Gettysburg Concrete Inc.
    I have a 457/401 II--Voya Fixed Account (Annuity Contract). For 
more detailed information about each of the funds it contains, please 
see my OGE Form 278e which is attached. I will continue to participate 
in this defined contribution plan. The plan sponsor will not make 
further contributions after my separation.
    I am vested in SEPTA's defined benefit plan. I will continue to 
participate in this defined benefit plan.
    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.
    I own common stock in Trenton Group Inc. and Gettysburg Concrete 
Company. Both companies are ready-mix concrete manufacturers and are 
closely held family companies.
    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.
    I have been employed by the Southeastern Pennsylvania 
Transportation Authority (``SEPTA'') since 2006. The Surface 
Transportation Board performs certain oversight of passenger rail 
operations, which may include SEPTA. Pursuant to my Ethics Agreement, I 
will not participate personally and substantially in any particular 
matter where SEPTA is a party for a period of one year after my 
resignation from SEPTA.
    As reflected in my Ethics Agreement with the STB, my spouse is 
employed by the law firm of Cozen O'Connor and in which he is a 
shareholder. For as long as my spouse continues to work for Cozen 
O'Connor, I will not participate personally and substantially in any 
particular matter involving specific parties in which I know my 
spouse's employer or any client of my spouse is a party unless I am 
first authorized to participate pursuant to 5 C.F.R. Sec. 2635.502 (d).
    My spouse is a contractor with Cable News Network (CNN). As stated 
in my Ethics Agreement, for as long as my spouse is a contractor with 
CNN, I will not participate personally and substantially in any 
particular matter involving specific parties in which I know CNN is a 
party or represents a party, unless I am first authorized to 
participate pursuant to 5 C.F.R. Sec. 2635.502(d).
    While I am not aware of any potential conflicts of interest that 
could involve my relationship with my spouse besides the ones 
previously listed, my spouse was previously employed as a lawyer in the 
White House Counsel's Office in 2017. Should I be confirmed, I will 
comply with all applicable ethics laws and regulations and consult with 
agency officials when appropriate.
    4. Describe any business relationship, dealing, or financial 
transaction which you have had during the last ten 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.
    I have not had any business relationship, dealing, or financial 
transaction during the last ten years for myself or on behalf of a 
client that could in any way constitute or result in a possible 
conflict of interest in the position to which I have been nominated.
    As previously stated, upon confirmation, I will resign from my 
position with SEPTA and will not participate personally and 
substantially in any particular matter involving specific parties in 
which I know SEPTA is a party or represents a party, unless I am first 
authorized to participate pursuant to 5 C.F.R. Sec. 26535.502(d).
    As reflected in my Ethics Agreement with the STB, my spouse is 
employed by the law firm of Cozen O'Connor and in which he is a 
shareholder. For as long as my spouse continues to work for Cozen 
O'Connor, I will not participate personally and substantially in any 
particular matter involving specific parties in which I know my 
spouse's employer or any client of my spouse is a party unless I am 
first authorized to participate pursuant to 5 C.F.R. Sec. 2635.502 (d).
    5. Describe any activity during the past ten 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.
    From 2006 through 2013 I served as both a Manager and Director of 
Legislative Affairs for SEPTA. In this capacity, I advocated for 
dedicated state and Federal funding for public transportation. I also 
advocated for changes in legislative language to advance the interests 
of SEPTA.
    6. Explain how you will resolve any potential conflict of interest, 
including any that may be disclosed by your responses to the above 
items.
    With regard to SEPTA, for a period of one year after my resignation 
from SEPTA, I will not participate personally and substantially in any 
matter which SEPTA is a party.
    Upon confirmation, I will resign from my position as General 
Partner of Tamarack Four and the entity will be reformed as a limited 
liability company. I will not hold a position with the new entity. For 
more detailed information, please see my Ethics Agreement.
    For as long as my spouse continues to work for Cozen O'Connor, I 
will not participate personally and substantially in any matter that to 
my knowledge has a direct and predictable effect on my spouse's 
financial interest in the firm, unless I first obtain a written waiver.
    For as long as my spouse is a contractor with CNN, I will not 
participate personally and substantially in any matter involving 
specific parties in which I know CNN is a party or represents a party, 
unless I am first authorized to participate pursuant to 5 C.F.R 
Sec. 2635.502(d).
                            c. legal matters
    1. Have you ever been disciplined or cited for a breach of ethics, 
professional misconduct, or retaliation by, or been the subject of a 
complaint to, any court, administrative agency, the Office of Special 
Counsel, professional association, disciplinary committee, or other 
professional group? No.
    If yes:

  a.  Provide the name of agency, association, committee, or group;

  b.  Provide the date the citation, disciplinary action, complaint, or 
        personnel action was issued or initiated;

  c.  Describe the citation, disciplinary action, complaint, or 
        personnel action;

  d.  Provide the results of the citation, disciplinary action, 
        complaint, or personnel action.

    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 or nonprofit of which you are or were 
an officer ever been involved as a party in an administrative agency 
proceeding, criminal 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.
                     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 whistle blowers 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.
                                 ______
                                 
                     Resume of Michelle A. Schultz
Senior Attorney--Corporate & Administrative Law
Accomplished attorney with a broad background that includes 10+ years 
with a quasi-government entity and eight years in legal practice. 
Committed to thoroughly researching issues and providing sound legal 
advice to clients, often presenting creative, effective, and multiple 
solutions to problems. Employs a collaborative approach to all client 
and stakeholder interactions to achieve the best possible outcome.

   Background includes 7 years in government affairs and public 
        policy, providing a solid basis for legal advice and the 
        ability to anticipate the political and/or public relations 
        impact of proposals.

   Regularly address compliance issues including emission 
        standards, hours of service and fatigue management, ADA 
        compliance, procurement, ethics laws, state and federal grant 
        compliance, city ordinances, White House Executive Orders, 
        First Amendment issues, zoning and construction laws, 
        environmental issues and immunity.

   Familiarity with corporate law matters that includes 
        drafting leases, right of entry agreements, construction 
        contracts, and non-disclosure agreements.

   Provide advice and counsel on matters in anticipation of 
        litigation.

                        Professional Experience

Deputy General Counsel
Southeastern Pennsylvania Transportation Authority--2014-Present

    Senior administrative law counsel responsible for advising the 
Authority on all complex regulatory, statutory, and administrative law 
matters at the local, state, and federal level. Interpret existing laws 
and ordinances, formulate strategic plans, and propose solutions to 
compliance issues. Draft compliant policies, legislative language that 
promotes or defends the Authority, various contract provisions and 
revisions, and requests for proposals (RFPs). Review and provide legal 
analysis on proposed state and Federal regulations. Provided advice and 
counsel on procurement issues pursuant to existing laws and state and 
federal grant contract terms. Responsible for managing the legal 
division expenditures. Responsible for handling negotiations with the 
Federal Railroad Administration regarding safety citations. Represent 
the Authority in matters before the Pennsylvania Public Utility 
Commission.
Key Achievements
   Selected to work with staffers from the Philadelphia City 
        Council to address zoning ordinances pertaining to signage on 
        or adjacent to city property. Drafted legislative language that 
        helped lead to an agreement.

   Conducting ongoing research on the legality and possibility 
        of establishing certain risk management tools for self-insured 
        entities like SEPTA.

   Drafted an RFP for a $80M-$100M capital construction 
        project.

   Requested to address a variety of legal issues surrounding 
        the World Meeting of Families in Philadelphia.

Director, Legislative Affairs
Southeastern Pennsylvania Transportation Authority--2010-2013

Directed and coordinated advocacy outreach to attain dedicated state 
and Federal funding for public transportation, including advocacy 
efforts for MAP-21 of 2012 and Act 89 of 2013. Provide draft responses 
to press inquiries regarding legislative, policy, and regulatory 
issues. Drafted testimony for members of the Authority's executive 
management for appearances before legislative committees and press 
events. Served as the Authority's Board Member for the Pennsylvania 
Public Transportation Association and representative to the Keystone 
Transportation Funding Coalition. Maintain relationships with key 
groups, including Greater Philadelphia Chamber of Commerce, American 
Public Transportation Association, Metropolitan Rail Discussion Group, 
Pennsylvania Public Transportation Association, and Keystone 
Transportation Funding Coalition.
Key Achievements
   Worked with all providers of public transportation in 
        Pennsylvania and drafted language on behalf of the industry to 
        exempt all types of communications systems used for public 
        transportation from driving distraction bills,

   Partnered with members of the bus manufacturing industry to 
        develop a strategy for dealing with certain emissions standards 
        established by the State of California and adopted by 
        Pennsylvania.

   Selected to resolve an air regulations issue involving two 
        conflicting local ordinances and state law. Developed an idling 
        operating policy that met all three mandates, negotiated 
        settlement of outstanding finds, and prevented future 
        citations.

   Provided guidance on compliance issues for a $100M vehicle 
        procurement, identifying changes in state law that were 
        inconsistent with new vehicle design. Asked by Pennsylvania DOT 
        to draft the necessary legislative change, which was enacted by 
        the Pennsylvania General Assembly in 2013.

   Commended for advocacy efforts in obtaining Act 89 
        Transportation Funding.

   Provided guidance on compliance issues involving the Federal 
        mandate for public passenger transportation providers to 
        implement Positive Train Control, including being asked by U.S. 
        Senate staffers to draft a memo summarizing the implementation 
        issues for the industry.

Manager, Legislative Affairs
Southeastern Pennsylvania Transportation Authority--2006-2010

Retained to provide guidance on various compliance issues, monitor 
regulatory changes, and assist with shaping government policy in 
matters of corporate concern. Handled all state and Federal constituent 
services on an interim basis. Monitored state and Federal legislation 
and provided summaries to the Director of Legislative Affairs. Trained 
newly hired constituent services personnel.
Key Achievements
   Commended for advocacy efforts in obtaining Act 44 
        Transportation Funding.

Associate
White and Williams, LLP--2002-2006

Represented businesses from diverse industries with a focus on 
financing matters, including Chapter 7 and 11 bankruptcy, commercial 
litigation, and collection matters. Litigated motions and adversary 
complaints for preference and fraudulent conveyance actions, Handled 
matters on behalf of debtors, including preparation of bankruptcy 
petitions, statements, and schedules, and prosecuting claims 
objections.
Key Achievements
   Addressed coverage issues for major insurance carriers in 
        bankruptcy cases resulting from mass tort litigation.

                           Career Development

Judicial Law Clerk
U.S. Bankruptcy Court for the Eastern District of Pennsvlvania--2000-
2002

   Prepared draft opinions for all bankruptcy judges of the 
        Eastern District of Pennsylvania.

   Conducted extensive legal research to assist the bench in 
        making decisions on a variety of bankruptcy issues.

Judicial Law Clerk
Superior Court of Pennsylvania, President Judge Emeritus Vincent A. 
Cirillo--2000

   Prepared draft Superior Court opinions and bench memoranda.

   Conducted legal research on a variety of complex civil and 
        criminal issues and assisted the Judge in making decisions.

                  Education & Professional Development

Education

   Master of Government Administration University of 
        Pennsylvania, Fels Institute of Government
     Selected by faculty to be the Commencement Speaker.
     Awarded the Stephen B. Sweeney Award for public 
            service.
   Juris Doctor (JD) Widener University School of Law
     Staff Writer, The Widener Law Forum
     Vice President, Student Bar Association
   Bachelor of Arts Pennsylvania State University--State 
        College
     Semester Abroad, Manchester, England
     Walt Disney World College Program and Management 
            Training Program

Admissions
   Pennsylvania and New Jersey

Professional Memberships
   Former Hearing Committee Member, The Disciplinary Board for 
        the Supreme Court of Pennsylvania
   Member, Pennsylvania Bar Association, Philadelphia Bar 
        Association

    The Chairman. Thank you, Ms. Schultz.
    Mr. Fuchs.

STATEMENT OF PATRICK J. FUCHS, NOMINEE TO BE A MEMBER, SURFACE 
                      TRANSPORTATION BOARD

    Mr. Fuchs. Chairman Thune, Ranking Member Nelson, 
distinguished members of the Committee, thank you for inviting 
me to appear before you today as a nominee to serve on the 
Surface Transportation Board. It is a tremendous honor to be 
nominated to this position.
    I'm grateful to you, Chairman Thune, for providing me the 
greatest privilege of my professional life, the opportunity to 
serve as a staff member for this Committee. I have been 
exceedingly fortunate to work on rail issues for a Senator who 
is a former state railroad director. I deeply admire your 
service and accomplishments on behalf of the State of South 
Dakota and the country.
    If confirmed, I would take with me the lessons I have 
learned from the principled leadership of this Committee, 
including an immense appreciation for the importance of 
cooperation, openness, and dedication in government service.
    I am joined here today by my brilliant and creative wife, 
Katherine, and my tireless and selfless parents, Joseph and 
Jeanne. Thank you for your unwavering love and support. Thank 
you to my four wonderful siblings for helping shape who I am. 
And thank you to my in-laws and friends for all the support.
    I am grateful to my incredible teammates on the Committee. 
Your professionalism, intelligence, and friendship have been 
some of the best parts of my job.
    Today I will highlight values that, if confirmed, I would 
strive to bring to my position on the Surface Transportation 
Board.
    First, I respect the statutory directives and authorities 
provided by Congress. As a staff member for this Committee, 
covering rail, hazardous materials, and maritime 
transportation, I have spent significant time with the 
challenging transportation issues facing the Nation and the 
statutory frameworks that address those issues.
    Under the Chairman's direction, I had the privilege to work 
on the Surface Transportation Board Reauthorization Act of 
2015. Introduced by Chairman Thune and co-sponsored by Ranking 
Member Nelson, this bipartisan legislation was the first 
reauthorization of the Board since its creation in 1996. It 
sought to improve the Board's dispute resolution processes, 
provide tools for proactive problem-solving, and reform the 
Board's structure. The Board has made great progress with 
implementation, and I am committed to fully executing the law 
and fulfilling its objectives.
    During my time with the Committee, I also had the 
opportunity to work on the first passenger rail reauthorization 
in over 7 years, led by Senators Wicker and Booker. This 
bipartisan legislation included provisions important to the 
Board's passenger rail oversight functions. If confirmed, I 
would bring this firsthand experience and perspective to my 
position on the Board.
    Second, I recognize the importance of objective, data-
driven analysis in formulating regulatory policy. During my 
time with this Committee and my previous employment with the 
Office of Management and Budget, I have evaluated the design 
and evidentiary underpinnings of rail and other transportation 
rules, analyzed the effects of those rules, and sought and 
weighed alternative approaches to improve outcomes. If 
confirmed, I am committed to ensuring that my decisions are 
supported by sound and objective analysis.
    Third, I believe both in the importance of the Board's 
responsibilities and in the power of market forces to achieve 
efficiencies and drive innovation and investment. Our Nation's 
freight rail system moves goods essential to Americans' well-
being, and it is predominantly private freight railroads that 
invest in, maintain, and operate the 140,000-mile rail network 
so integral to our economy. Few deny the transformational 
effects of partial economic deregulation in 1980, with gains in 
productivity and safety in the years that followed.
    At the same time, codified in our Nation's rail 
transportation policy are important consumer protections, 
including to maintain reasonable rates in the absence of 
effective competition and to avoid undue concentrations of 
market power. The statutory framework governing the Board 
therefore underscores both a need for regulation and a need for 
that regulation to be reasonable. If confirmed, I would be 
proud to advance the Board's mission and bring to my position 
an understanding of the value of markets.
    This is an exciting time for the Board. The Board has a 
robust workload before it, strong leadership, and talented and 
dedicated staff, and, if confirmed, it would be an honor to 
work with them and this Committee to help ensure an efficient 
and competitive rail system.
    Thank you for your consideration. And I look forward to 
your questions.
    [The prepared statement and biographical information of Mr. 
Fuchs follow:]

    Prepared Statement of Patrick J. Fuchs, Nominee to be a Member, 
                      Surface Transportation Board
    Chairman Thune, Ranking Member Nelson, and distinguished Members of 
the Committee, thank you for inviting me to appear before you today as 
a nominee to serve on the Surface Transportation Board. It is a 
tremendous honor to be nominated to this position.
    I am grateful to you, Chairman Thune, for providing me with the 
greatest privilege of my professional life--the opportunity to serve as 
a staff member for this Committee. I have been exceedingly fortunate to 
work on rail issues for a Senator who is a former state railroad 
director. I deeply admire your service and accomplishments on behalf of 
the State of South Dakota and the country.
    If confirmed, I would take with me the lessons I have learned from 
the principled leadership of this Committee, including an immense 
appreciation for the importance of cooperation, openness, and 
dedication in government service.
    I am joined here today by my brilliant and creative wife, 
Katherine, and my tireless and selfless parents, Joseph and Jeanne. 
Thank you for your unwavering love and support. Thank you to my four 
wonderful siblings for helping shape who I am, and thank you to my in-
laws and friends for all the support. I am grateful to my incredible 
teammates on the Committee--your professionalism, intelligence, and 
friendship have been some of the best parts of my job.
    Today, I will highlight values that, if confirmed, I would strive 
to bring to my position on the Surface Transportation Board.
    First, I respect the statutory directives and authorities provided 
by Congress. As a staff member for this Committee, covering rail, 
hazardous materials, and maritime transportation, I have spent 
significant time with the challenging transportation issues facing the 
Nation and the statutory frameworks that address those issues.
    Under the Chairman's direction, I had the privilege to work on the 
Surface Transportation Board Reauthorization Act of 2015 (P.L. 114-
110). Introduced by Chairman Thune and co-sponsored by Ranking Member 
Nelson, this bipartisan legislation was the first reauthorization of 
the Board since its creation in 1996. It sought to improve the Board's 
dispute resolution processes, provide tools for proactive problem-
solving, and reform the Board's structure. The Board has made great 
progress with implementation, and I am committed to faithfully 
executing the law and fulfilling its objectives.
    During my time with the Committee, I also had the opportunity to 
work on the first passenger rail reauthorization in over seven years, 
led by Senators Wicker and Booker. This bipartisan legislation included 
provisions important to the Board's passenger rail oversight functions. 
If confirmed, I would bring this first-hand experience and perspective 
to my position on the Board.
    Second, I recognize the importance of objective, data-driven 
analysis in formulating regulatory policy. During my time with this 
Committee and my previous employment with the Office of Management and 
Budget, I have evaluated the design and evidentiary underpinnings of 
rail and other transportation rules, analyzed the effects of those 
rules, and sought and weighed alternative approaches to improve 
outcomes. If confirmed, I am committed to continuing to ensure that my 
decisions are supported by sound and objective analysis.
    Third, I believe both in the importance of the Board's 
responsibilities and in the power of market forces to achieve 
efficiencies and drive innovation and investment. Our nation's freight 
rail system moves goods essential to Americans' well-being, and it is 
predominately private freight railroads that invest in, maintain, and 
operate the 140,000-mile rail network so integral to our economy. Few 
deny the transformational effects of partial economic deregulation in 
1980, with gains in productivity and safety in the years that followed.
    At the same time, codified in our Nation's rail transportation 
policy are important consumer protections, including to maintain 
reasonable rates where there is an absence of effective competition and 
to avoid undue concentrations of market power. The statutory framework 
governing the Board therefore underscores both a need for regulation 
and a need for that regulation to be reasonable. If confirmed, I would 
be proud to advance the Board's mission and bring to my position an 
understanding of the value of markets.
    This is an exciting time for the Board. The Board has a robust 
workload before it, strong leadership, and talented and dedicated 
staff, and--if confirmed--it would be an honor work with them and this 
Committee to help ensure an efficient and competitive rail system.
    Thank you for your consideration. I look forward to answering your 
questions.
                                 ______
                                 
                      a. biographical information
    1. Name (Include any former names or nicknames used):

        Patrick John Fuchs.
        Nickname: ``Paco'' in place of Patrick (the nickname is used 
        among some family and friends)

    2. Position to which nominated: Member, Surface Transportation 
Board.
    3. Date of Nomination: March 6, 2018.
    4. Address (List current place of residence and office addresses):

        Residence: Information not released to the public.

    5. Date and Place of Birth: February 3, 1988; Milwaukee, Wisconsin.
    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).

        Katherine Den Boer, Director--Communications & Policy, CTIA 
        (spouse).

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

        Master of Public Affairs, University of Wisconsin--Madison, 
        2011.
        Bachelor of Arts, Economics (major), Political Science (major), 
        University of Wisconsin--Madison, 2010.

    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.

        Senior Professional Staff Member, United States Senate, 
        Committee on Commerce, Science, and Transportation, 2017 to 
        Present. (Professional Staff Member, 2015 to 2017).

        Policy Analyst, Executive Office of the President, United 
        States Office of Management and Budget (0MB), Office of 
        Information and Regulatory Affairs, 2011 to 2015. (Presidential 
        Management Fellowship, 2011 to 2013).

        Foreign Service Detail--Policy Analyst (Presidential Management 
        Fellowship), United States Department of State, United States 
        Embassy in The Hague, Netherlands, 2013.

        Project Assistant, National Center for Freight and 
        Infrastructure Research and Education, University of 
        Wisconsin--Madison, 2009 to 2011.

        Analyst Intern, United States Government Accountability Office, 
        Physical Infrastructure Division, 2010.

        City Administration Intern, City of Middleton, Wisconsin, 2009.

        Management: At the Commerce Committee, I serve as the lead 
        staffer on rail, hazardous materials, and merchant marine 
        issues and on certain infrastructure policy areas. In this 
        capacity, I oversee the research and legislative work of more 
        junior staff and detailees working on surface transportation 
        and maritime issues. At the 0MB, l managed regulatory and 
        information collection reviews, consisting of staff from 
        multiple Federal agencies, on rail, maritime, and other issues. 
        At the Department of State, I conducted in-depth economic 
        policy analysis and oversaw the work of locally-employed 
        economic staff.
    9. Attach a copy of your resume.
    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 ten years.

        Member, Financial Institutions Advisory Board, University of 
        Wisconsin--Madison, 2008 to 2009.

        Policy Intern, Office of the Lieutenant Governor, State of 
        Wisconsin, 2008.

        Office Assistant, University of Wisconsin--Madison, Department 
        of Population Health Sciences, 2007 to 2008.

    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 ten years.
    Member, DTP Capital LILAC, 2014 to 2017. (I was a non-managing 
member of this limited liability company, which invested in residential 
real estate in Wisconsin. I sold my membership interest in October 
2017.)
    12. Please list each membership you have had during the past ten 
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.

        Wisconsin City/County Manager Association, Member, 2009 to 
        2011.

        Distinguished Lecture Series, Wisconsin Union Directorate, 
        Committee Member, 2007 to 2010.

        Pi Alpha , Public Affairs Honor Society, President of 
        University of Wisconsin--Madison chapter, 2010 to 2011.

        Pi Sigma Alpha, Political Science Honor Society, Member, 
        University of Wisconsin--Madison chapter, 2009 to 2010.

        Member, Financial Institutions Advisory Board, University of 
        Wisconsin Madison, 2008 to 2009.

        St. Joseph Catholic Church, Parishioner, 1989 to 2011.

        I have also worked with the charitable organization Greater DC 
        Cares, now defunct, but this service did not involve formal 
        membership.

        None of these organizations 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, non-elected, 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 ten 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.
    I have not made political contributions.
    I have not held office with, or rendered services to, a state or 
national political party.
    15. List all scholarships, fellowships, honorary degrees, honorary 
society memberships, military medals, and any other special recognition 
for outstanding service or achievements.
Fellowships
        Presidential Management Fellowship, United States Office of 
        Management and Budget, 2011 to 2013. As part of this 
        fellowship, I also served on detail with the United States 
        Department of State.
Special Recognition for Outstanding Service or Achievements
        Special Achievement Award, United States Office of Management 
        and Budget, 2014, for ``tireless efforts and outstanding work 
        in improving regulatory outcomes as well as key and timely 
        contributions in areas outside of his normal areas of 
        responsibility.''

        Meritorious Honor Award, United States Department of State, 
        2013, for ``extraordinary contributions to substantive economic 
        analysis and to Embassy outreach, visibility, and 
        credibility.'' Shared with Gilles Everts.

        Special Achievement Award United States Office of Management 
        and Budget, 2013, for ``enthusiasm, imagination, and 
        effectiveness in improving regulatory outcomes and processes.''

        Director's Achievement Award, University of Wisconsin--Madison, 
        Robert M. La Gillette School of Public Affairs, 2011 for an 
        ``outstanding academic record'' and ``evidence of being an 
        outstanding public policy thinker and communicator.''

        Other academic recognitions include: Distinction from College 
        of Letters and Science, University of Wisconsin--Madison, 2010 
        (Economics, Political Science); Distinction in the Major 
        (Political Science), University of Wisconsin--Madison, 2010; 
        and Dean's List, University of Wisconsin--Madison, 2007 to 
        2010.
Honor Society Memberships
        Pi Alpha Alpha, Public Affairs Honor Society, 2010. I served as 
        President of the University of Wisconsin--Madison chapter.

        Pi Sigma Alpha, Political Science Honor Society, 2010.
Scholarships
        Project Assistantship, 2009 to 2011. I received full tuition 
        and a stipend for the 2010-11 academic year.

    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
        Bittner, Fuchs, Baird, and Smith. (September 2011). WisDOT 
        Policy Research Program: Addressing Elderly Mobility Issues in 
        Wisconsin (Final Report No. 0092-10-19). Madison, WI: Wisconsin 
        Department of Transportation Research & Library Unit and 
        National Center for Freight & Infrastructure Research & 
        Education.

        In addition, while at the OMB's Office of Information and 
        Regulatory Affairs, I was the staff member assigned to lead the 
        production of the Information Collection Budget of the United 
        States for Fiscal Years 2011, 2012, and 2013. I am listed as a 
        principal contributor for these publications.

                Office of Management and Budget, Office of Information 
                and Regulatory Affairs. (September 2014). Information 
                Collection Budget of the United States Government, 
                Fiscal Year 2013. Washington: United States Office of 
                Management and Budget.

                Office of Management and Budget, Office of Information 
                and Regulatory Affairs. (September 2014). Information 
                Collection Budget of the United States Government, 
                Fiscal Year 2012. Washington: United States Office of 
                Management and Budget.

                Office of Management and Budget, Office of Information 
                and Regulatory Affairs. (January 2013). Information 
                Collection Budget of the United States Government, 
                Fiscal Year 2011. Washington: United States Office of 
                Management and Budget.

        I was also listed as an OMB contributor to the President's 
        Budget for Fiscal Years 2013, 2014, and 2016. My role in these 
        budgets was minor, because my position primarily involved 
        regulatory and information collection issues.

                Office of Management and Budget. (February 2015). 
                Budget of the United States Government, Fiscal Year 
                2016. Washington: United States Government Printing 
                Office.

                Office of Management and Budget. (April 2013). Budget 
                of the United States Government, Fiscal Year 2014. 
                Washington: United States Government Printing Office.

                Office of Management and Budget (February 2012). Budget 
                of the United States Government, Fiscal Year 2013. 
                Washington: United States Government Printing Office.

        Finally, I participated in a 2011 Transportation Research Board 
        session: Gollnik, Wittwer, Kleinmaier, and Fuchs. (January 
        2011). Poster Session 611: Northwest Passage Corridor-wide 
        Commercial Vehicle Permitting. Madison, WI: National Center for 
        Freight & Infrastructure Research & Education. However, I run 
        not listed on the final publication.
Speeches
    As part of my duties as a Senate staffer, I have regularly spoken 
externally on panels and at conferences and meetings concerning topics 
relevant to surface transportation. Most of the presentations did not 
focus exclusively on Surface Transportation Board issues but instead 
covered a range of freight and passenger rail issues. Relevant 
presentations include:

   Surface Transportation Board Rail-Shipper Transportation 
        Advisory Committee meetings (04/15, 11/15, 08/16, 02/17);

   National Mediation Board annual meetings (01/16, 01/17);

   Federal Railroad Administration Project Delivery conferences 
        (10/15, 11/17);

   American Public Transportation Association conferences (03/
        16, 02/17, 11/17);

   Rail Customer Coalition meetings (01/16, 06/16; 11/16);

   American Short Line and Railroad Association conference and 
        meeting (04/16, 03/17);

   Association of American Railroads conferences (06/15, 01/
        17);

   American Association of State Highway and Transportation 
        Officials conferences (02/15, 02/16, 02/17, 04/17, 03/18);

   National Association of Rail Passengers conference (04/16);

   Agricultural Transportation Working Group meeting (05/17);

   American Forest & Paper Association meeting (09/16);

   Brotherhood of Maintenance of Way Employes State 
        Representative meeting (05/17);

   Freight Rail Customer Alliance meeting (04/16);

   National Association of Railroad Passengers conference (04/
        16);

   Eno Center for Transportation Fellows panel (06/17); and

   Association of Transportation Law Professionals meeting (11/
        16).

    I have lectured students on various aspects of public policy and 
government relations, with specific examples from surface 
transportation policy. These lectures include:

   Georgetown University, Nonmarket Strategies and Government 
        Arenas (09/17).

   Leadership Institute, Managing Congressional Hearings (04/
        17).

    During my employment with the OMB, I also presented externally on 
regulatory reform and design:

   Organisation for Economic Co-operation and Development 
        (OECD), 8th Session of the Regulatory Policy Committee, 04/13.

    17. Please identify each instance in which you have testified 
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each 
testimony.
    I have not testified orally or in writing before Congress.
    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?
    During my time with the Senate Commerce Committee, I developed, 
drafted, and negotiated legislation to improve the Nation's 
transportation network, and this experience has provided me with an in-
depth understanding of the issues facing the Surface Transportation 
Board. For example, through my work on the Surface Transportation Board 
Reauthorization Act of 2015 (S. 808), the first reauthorization of the 
Board since its creation in 1996, I acquired a deep understanding of 
the Board's dispute resolution processes, structure, and authorities. 
Following enactment of the legislation, my work has also included close 
oversight of the Board's implementation efforts. As another example, 
through my work on the Fixing America's Surface Transportation (FAST) 
Act (P.L. 114-94), which included the first passenger rail 
reauthorization in over seven years and substantive permitting reforms, 
I gained detailed knowledge of the effects of Federal policies on 
railroad operations and investment decisions.
    Further, during my time with the 0MB, I managed the regulatory 
review of rail regulations of national importance from Executive 
Agencies, as well as the review of all information collection requests 
of the Surface Transportation Board. This experience provided me with a 
strong foundation in economic and data analysis and their application 
to the rail industry. My positions at both the Commerce Committee and 
OMB included significant work on transportation issues outside of rail 
policy, such as maritime, hazardous materials, and multimodal issues. 
This work has prepared me for the Board's other responsibilities, such 
as certain oversight functions for household goods carriers or non-
energy, non-water pipelines. My interest and experience in 
transportation, particularly rail, extends back to research work with 
the University of Wisconsin and analyst training with the Government 
Accountability Office.
    I wish to serve in this position because I believe the Board's 
responsibilities are important; our Nation's rail system moves goods 
essential to the well-being of the country, and the Board is charged 
with helping ensure that system is sound, efficient, and competitive. 
The Board also plays an important role in the oversight of the 
passenger rail that carries people to medical appointments, family 
visits, and vacation destinations. I appreciate the importance of fair, 
timely, and analytically-driven decisions from the Board, and--through 
objective and rigorous analysis--I hope to make a meaningful positive 
impact on those decisions.
    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?
    Through my legislative and oversight work with the Commerce 
Committee, I understand the Board's has had challenges with certain 
management and accounting controls, and--if confirmed--I would be 
committed to fixing any deficiencies, efficiently allocating resources, 
and complying with applicable laws and regulations. Notably, recent 
work of the Department of Transportation Inspector General (DOT IG)--as 
part of its Federal Information Security Management Act of 2002 (FISMA) 
audit--found that the Board's information security program is not 
effective, and I believe it is the duty of all Board members to help 
ensure the Board implements the DOT IG's recommendations as 
appropriate. Moreover, the Surface Transportation Board Reauthorization 
Act of 2015, which I helped draft, included new management transparency 
measures concerning rate cases, regulatory proceedings, and complaints, 
and it is important to ensure reports are highly informative and 
accessible to the public.
    The Board's Chairman legally holds foremost responsibility for the 
administration of the agency, and all Board members help oversee 
administrative functions. Since assuming her position, Chairman Begeman 
has taken strong action to fix identified deficiencies, including 
continuing to modernize and secure the Board's information technology 
(IT) system and expanding the use of deadlines for Board proceedings. I 
fully support these efforts, and--if confirmed--I would help drive and 
reinforce improvements to the IT system and decision-making process. In 
particular, given the sensitive information collected by the Board, I 
would prioritize on-going work to ensure the Board protects its IT 
system via timely software patch installation, adequate access and 
training policies, and other risk management actions consistent with 
the DOT IG's recommendations.
    Chairman Begeman and Commissioner Miller, I have also recently 
taken action to update the Board's ex parte communication rules, 
permitting greater and more nimble information collection and exchange, 
subject to certain disclosure and timing requirements. I support these 
changes to acquire needed information and improve external 
communication in a quicker and less resource intensive manner.
    Through my work with Commerce Committee, I have conducted oversight 
of the management of large agencies, and I frequently interface with 
the relevant Inspectors General to advance management best practices. 
During my time with the OMB, I gained experience managing interagency 
regulatory review teams to help make appropriate resource allocation 
decisions. Further, with the 0MB, I managed information collection 
request reviews that involved consideration of privacy impacts, data 
quality, and information technology. If confirmed, I would apply that 
experience to help ensure the Board has proper management and 
accounting controls.
    20. What do you believe to be the top three challenges facing the 
department/agency, and why?
    1. Fully Implementing the Surface Transportation Board 
Reauthorization Act of 2015. Amid concerns that rate cases were too 
costly, complex, and time-consuming, the legislation aimed to improve 
the rate case process at the Board, including by streamlining 
administrative processes, expediting rate review timelines, and 
expanding voluntary arbitration to offer an alternative to litigation. 
The law also required the Board to look at simpler ways to conduct rate 
reviews. Continuing that process, the Board has published an Advanced 
Notice of Proposed Rulemaking (ANPRM) soliciting feedback on an 
alternative rate review methodology for small cases, and it recently 
established a Rate Reform Task Force. A key challenge facing the Board 
is examining feedback on the ANPRM and managing the Rate Reform Task 
Force to see if there are alternative methodologies that exist, or 
could be developed, to address the complexity of large rate cases, 
consistent with sound economic principles.
    Moreover, the legislation aimed to increase proactive problem-
solving and accountability, such as by providing the Board with 
authority to launch investigations based on its own initiative. 
Consistent with the aim of the legislation, a key challenge for the 
Board is deciding when and how to proactively address any major service 
disruptions that arise.
    2. Modernizing Information Collection, Processing, and Technology 
Systems. These systems affect nearly everything the Board does, from 
reviewing rates and service to interacting with the general public. In 
recent years, the Board has increased its collection of data (e.g., 
requiring service metric reporting), revisited its processing of 
certain data (e.g., evaluating its Uniform Railroad Costing System), 
and initiated a modernization of its IT systems. As noted above, the 
DOT IG has found that the Board's information security program is not 
effective. I understand that the Board is currently working to secure 
its IT system, replace its case management system, and upgrade its 
public website. A key challenge for the Board is prioritizing and 
managing these initiatives to ensure efficient resource allocation and 
successful outcomes.
    3. Making Timely, Sound Decisions on Pending Proceedings. The Board 
has a large docket of existing proceedings, some of which have been on-
going for several years. Notably, in 2016, the Board proposed rules on 
reciprocal switching and commodity exemptions, and--as noted above--it 
has issued an ANPRM on rate case methodologies. Many of these 
proceedings have large implications for the rail system, and both 
railroads and shippers face uncertainty about their outcomes. A key 
challenge for the Board is making timely decisions on outstanding 
proceedings while ensuring that such decisions are based on good data 
and rigorous analysis.
                   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 hold a Thrift Savings Plan and a Federal Government retirement 
account. I also participate in the Federal Employees Retirement System, 
a defined benefit retirement plan.
    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. 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.
    I do not have any investments, obligations, liabilities, or other 
relationships which could involve potential conflicts of interest in 
the position to which I have been nominated.
    4. Describe any business relationship, dealing, or financial 
transaction which you have had during the last ten 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.
    I do not have any business relationship, dealing, or financial 
transaction that could in any way constitute or result in a possible 
conflict of interest in the position to which I have been nominated.
    5. Describe any activity during the past ten 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.
    During my employment as a Senate staffer, an important part of my 
job has involved activities that directly and indirectly influenced the 
passage, defeat, or modification of legislation and that have affected 
the administration and execution of law or public policy. For example, 
I was heavily involved in developing, drafting, and negotiating aspects 
of the Surface Transportation Board Reauthorization Act of 2015 (P.L. 
114-110) and the FAST Act (P.L. 114-94), among other legislation, as 
well as in advising Senate offices on related amendments. I have also 
been involved in oversight efforts concerning issues within the 
Commerce Committee's jurisdiction.
    During my employment with the OMB, I provided objective analysis 
and recommendations to senior Administration officials on proposed and 
final regulations of national importance, including significant rules 
governing transportation safety and housing programs. I also advised 
senior policy officials on legislative proposals and reviewed 
Congressional testimony.
    During my employment with the U.S. Government Accountability Office 
and National Center for Freight and Infrastructure Research and 
Education, I was involved in reviews that covered, in part, the 
execution of Federal transportation programs and policies. During my 
work for the City of Middleton and Office of the Lieutenant Governor, 
State of Wisconsin, I drafted memos for policy officials on state and 
local government issues.
    6. Explain how you will resolve any potential conflict of interest, 
including any that may be disclosed by your responses to the above 
items.
    In connection with the nominations process, I have consulted with 
the Office of Government Ethics and the Surface Transportation Board's 
ethics official to identify conflicts of interest. Any potential 
conflicts of interest will be resolved in accordance with the terms of 
an ethics agreement that I have entered with the Board's ethics 
official. A copy of the ethics agreement will be provided to this 
Committee.
                            c. legal matters
    1. Have you ever been disciplined or cited for a breach of ethics, 
professional misconduct, or retaliation by, or been the subject of a 
complaint to, any court, administrative agency, the Office of Special 
Counsel, professional association, disciplinary committee, or other 
professional group? If yes:

  a.  Provide the name of agency, association, committee, or group;

  b.  Provide the date the citation, disciplinary action, complaint, or 
        personnel action was issued or initiated;

  c.  Describe the citation, disciplinary action, complaint, or 
        perso1U1el action;

  d.  Provide the results of the citation, disciplinary action, 
        complaint, or personnel action.

    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.
    Yes. In April 2007, at the age of 19, I received a civil charge 
(non-criminal) for an ordinance violation for possession of marijuana. 
The charge was issued by the University Police of the State of 
Wisconsin. I pleaded no contest to an amended charge of a non-traffic 
ordinance violation for miscellaneous conduct on UW lands. This case 
resulted in no fine and $105.00 in court costs.
    3. Have you or any business or nonprofit of which you are or were 
an officer ever been involved as a party in an administrative agency 
proceeding, criminal 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 whistle blowers 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.
                                 ______
                                 
                        Resume of Patrick Fuchs
Professional Experience
U.S. Senate, Committee on Commerce, Science, and Transportation--01/15-
Present
Senior Professional Staff Member, Surface Transportation and Merchant 
Marine

Advances the policies and priorities of Chairman Thune and Committee 
Majority members by developing, drafting, and negotiating legislation 
to improve the Nation's transportation network, including major rail 
reauthorization bills. Represented the Senate on rail and hazardous 
materials issues during the successful conference committee of the FAST 
Act (P.L. 114-94). Manages full and subcommittee hearings on surface 
transportation regulation, passenger rail policy, maritime security, 
among other issues. Conducts oversight of agencies within the 
Committee's jurisdiction, including the STB, FRA, and PHMSA. Advises 
Senate Majority offices on amendment votes, Collaborates with the 
Committee's communications team and conducts stakeholder outreach to 
build support for legislation. Served as Professional Staff Member from 
2015 to 2017. Key work includes:

   Surface Transportation Board Reauthorization Act of 2015 (S. 
        808), the first reauthorization of the Board since its creation 
        in 1996, improved the agency's dispute resolution processes, 
        enabled more proactive problem-solving, and reformed its 
        structure to increase efficiency and transparency (P.O. 114-
        110);

   Railroad Reform, Enhancement, and Efficiency Act (S. 1626), 
        the first passenger rail reauthorization in over seven years, 
        instituted reforms to improve Amtrak's performance, introduce 
        passenger rail competition, and increase safety (part of P.O. 
        114-94).

   Railroad Safety and Positive Train Control Extension Act (S. 
        650) avoided a significant disruption to rail transportation by 
        extending an unrealistic statutory deadline for positive train 
        control implementation and setting new accountability measures 
        (part of P.O. 114-73).

   Track, Railroad, and Infrastructure Network Act (S. 769) 
        streamlined historic and environmental permitting requirements 
        to facilitate accelerated rail project delivery (part of P.L. 
        114-94).

   Railroad Infrastructure Financing Improvement Act (S. 797) 
        reformed an inefficient railroad loan program to reduce review 
        times, increase flexibility, and add taxpayer protections (part 
        of P.L. 114-94).

   Hazardous Materials Transportation Safety Improvement Act 
        of2015 (Title VII of the FAST Act) increased safety, 
        streamlined grant programs, and reduced unnecessary regulatory 
        burden (part of P.L. 114-94).

Executive Office of the President, Office of Management and Budget--06/
11-01/15
Policy Analyst; Transportation and Security

Led government-wide reviews to provide objective analysis and 
recommendations to senior Administration officials on proposed and 
final regulations of national importance, including significant rules 
governing transportation safety and housing programs. Analyzed complex 
economic and financial data to help ensure Federal agencies, including 
DOT, accurately assessed the costs and benefits of regulations and 
selected the most cost-effective alternatives. Built excellent 
relationships with senior career staff to achieve policy improvements. 
Advised senior policy officials on legislative proposals, reviewed 
Congressional testimony, and drafted reports to Congress on government-
wide management initiatives.

Improved over 40 proposed and final regulations, over 70 surveys and 
program evaluations with statistical methods, and a Presidential 
management initiative, Highlights include:

   Advised senior OMB leaders and advanced major changes to 
        proposed regulations for crude oil and ethanol transportation 
        by rail, saving over $1 billion in unnecessary costs from the 
        original proposals.

   Led the review of proposed and final regulations amending 
        overly burdensome train technology requirements, resulting in 
        estimated cost savings of over $1 billion.

   Managed a government-wide paperwork burden reduction 
        initiative, including changes that led to paperwork time 
        savings of about $2 billion per year.

   Received a Special Achievement Award in 2014 from OMB for 
        ``tireless efforts and outstanding work in improving regulatory 
        outcomes as well as key and timely contributions in areas 
        outside of his normal areas of responsibility.''

   Received a Special Achievement Award in 2013 from OMB for 
        ``enthusiasm, imagination, and effectiveness in improving 
        regulatory outcomes and processes.''

U.S. Department of State, U.S. Embassy in The Hague, Netherlands--02/
13-06/13
Policy Analyst (Foreign Service Detail), Economic Section

Developed complex economic and financial analyses on budget, labor, and 
banking issues for senior officials at the Department of State, the 
Department of the Treasury, and National Security Council. Supervised 
Embassy-employed economic staff with responsibilities for analyzing 
Dutch government reports and economic data. Coordinated and 
collaborated with senior diplomats in Brussels and The Hague to ensure 
consistent economic reporting. Built relationships with foreign 
government officials, businesses, academics, and policy stakeholders to 
gain insight into critical economic issues for U.S. strategic 
interests.

   Received a Meritorious Honor Award from the Department of 
        State for ``extraordinary contributions to substantive economic 
        analysis and to Embassy outreach, visibility, and 
        credibility.''

National Center for Freight and Infrastructure Research and Education, 
Madison, WI--09/09-06/11
Project Assistant, Transportation Research Projects

Assessed Wisconsin's public and specialized transportation programs and 
developed statistical, economic, and geospatial analyses of statewide 
elderly mobility data. Oversaw the development of the literature 
review, identification of best practices, and policy recommendations 
for the final research study. Designed a statewide transportation 
survey, with an emphasis on safety for older persons, and coordinated 
with over 50 local governments and non-profit organizations to garner 
informative public responses.

   Co-authored final elderly mobility research study for the 
        Wisconsin DOT and presented findings at National Academies' 
        Transportation Research Board conference.

U.S. Government Accountability Office, Washington D.C.--05/10-08/10
Analyst Intern, Physical Infrastructure Division

Analyzed the effects of the freight hours of service policies in the 
Rail Safety Improvement Act of 2008. Gathered economic data on freight 
railroads, conducted research on fatigue assessment tools, and helped 
develop statistical analysis of railroad accident/incident and 
inspection data.
Other Leadership
OECD Regulatory Policy Committee, Paris, France, Presenter--04/13
Transportation Research Board, Washington, D.C., Published Co-Author--
11/10-0l/12
Pi Alpha Alpha Public Affairs Honors Society, Madison, WI, President--
12/10-05/11
Distinguished Lecture Series, Madison, WI, Committee Member--09/07-09/
10
Select Invited Remarks: STB RSTAC meetings (04/15, 11/15, 08/16, 02/
17); FRA Project Delivery conferences (10/15, 11/17); ASLRRA 
conferences (04/16, 03/17); AAR conferences (06/15, 01/17); Rail 
Customer Coalition meetings (01/16, 06/16; 11/16); AASHTO conferences 
(02/15, 02/16, 02/17, 04/17, 03/18); APTA conferences (03/16, 02/17, 
11/17); NARP conference (04/16); and Ag Transportation Working Group 
meeting (05/17).
Education
University of Wisconsin
Master of Public Affairs. La Follette School of Public Affairs (05/11)

   Received Director's Award to recognize an outstanding 
        academic record in the graduate school class

   Awarded Presidential Management Fellowship upon graduation

Bachelor of Arts, Economics; Bachelor of Arts, Political Science (05/
10)
International Academic Program at National University of Singapore (06/
09)

   Awarded Distinction in the Major, Political Science

   Awarded Distinction from the College of Letters and Science, 
        Economics, Political Science

    The Chairman. Thank you, Mr. Fuchs. This Committee's loss 
will be the STB's gain.
    Mr. Fuchs. I appreciate it, sir.
    The Chairman. You've taken a lot of expertise with you, and 
we look forward to continue to work on issues that are 
important to rail service in this country.
    I know you all appreciate the importance of cooperation 
between the FTC, the STB, and Congress. Nevertheless, these 
nomination hearings give us an opportunity to underscore that 
point. A simple question: If confirmed, will you pledge to work 
collaboratively with this Committee and its members and to 
provide thorough and timely responses to our requests for 
information?
    Mr. Fuchs. Yes, Mr. Chairman.
    Ms. Schultz. Yes.
    Ms. Slaughter. Yes.
    The Chairman. All right. This is an STB-related question. 
As I mentioned earlier, the Surface Transportation 
Reauthorization Act provided STB with the authority to conduct 
investigations on its own initiative to allow it to more 
proactively resolve service issues and other problems before 
they escalate into larger disputes. To date, STB has not 
conducted any investigations under this provision.
    And so this would be for our STB ``noms'': If confirmed, 
would you be willing to use STB's investigative authority? And 
if so, how would you envision it being used?
    Ms. Schultz or Mr. Fuchs, whoever wants to go first.
    Mr. Fuchs. Yes, Mr. Chairman. And I agree it's an important 
aspect of your reauthorization legislation, that I think it 
really advances the goal of proactive problem-solving. So, if 
confirmed, I would envision using the authority on issues of 
national or regional significance for an alleged violation. In 
making a scope determination, I would consider the impacts on 
traffic and customers and other entities.
    I would also look at the geographic scope of an issue. Any 
determination would be fact-specific. And at the same time, I 
would certainly respect due process protocols and adhere to the 
timing of the legislation and certainly would use the authority 
judiciously.
    So certainly, I think this is an important tool in the 
Board's toolbox, and I would use it if it were appropriate to 
do so.
    The Chairman. Thank you, Mr. Fuchs.
    Ms. Schultz.
    Ms. Schultz. I would concur with Patrick's statement. The 
only thing that I would add is, is that I'm aware that the 
Board currently has a number of things that it does to work to 
address service challenges, including ongoing dialogues with 
all the stakeholders. And in addition to, of course, supporting 
the use of investigatory authority, I would also just add that 
what I would encourage to pursue first would be to further the 
current actions of what the Board takes, which is to try to 
address any types of challenges very quickly and efficiently by 
having ongoing conversations.
    The Chairman. Ms. Slaughter, with the growth of e-commerce 
and social media in recent years, I'd like to just get a 
response from you regarding the state of competition in the 
American tech sector. While some argue that big tech should be 
subject to more antitrust scrutiny, the applicable law would 
seem to require a more nuanced analysis, one that is not based 
on size alone.
    So could you kind of describe for us what your views are 
regarding antitrust concerns with respect to large technology 
firms, such as Facebook and Google?
    Ms. Slaughter. Thank you, Mr. Chairman for the question. I 
am well aware of the active debate that's happening in the 
public and in this Committee about large companies in many 
industries, but especially in the tech industry.
    And I agree strongly with what Mr. Simons and some of the 
other nominees said at their confirmation hearing. Big isn't 
necessarily bad on its own, but where you have extreme market 
concentration, you have more opportunity for abuse of that 
market power. I think it's incumbent upon the Commission to 
monitor carefully for any abuses in any sector, including the 
tech sector.
    The Chairman. One other question, and this is back to STB, 
there have been recently, and then, of course, going back in my 
home state of South Dakota in 2013 and 2014, some serious 
service disruptions, fluidity issues affecting shippers. So I'm 
wondering if you could maybe just talk a little bit about what 
you see as the Board's role in responding to rail service 
issues. And if confirmed, what long-term actions do you believe 
STB should take to prevent or mitigate future service delays?
    Ms. Schultz, and then Mr. Fuchs.
    Ms. Schultz. Sure. I think that the role of the Board is to 
determine how best to quickly address the service issues that 
are happening in the moment. As I previously discussed, the 
Board has a number of ways to address service issues, including 
the dialogue of the current rail customer program that's in 
place, which, again, works with both shippers and railroads to 
obtain metrics and to try to assess what's going on.
    The Board has a few other options as well, which is to hold 
hearings and ultimately to initiate orders to address service 
issues. And if confirmed, I would pledge that I would take the 
issue of service disruptions very seriously, work with the very 
qualified staff at the Board, as well as my fellow Board 
members and the stakeholders of the industry to address service 
issues as quickly as possible.
    The Chairman. Thank you, Ms. Schultz.
    Mr. Fuchs.
    Mr. Fuchs. Thank you, Mr. Chairman. I would agree with what 
Michelle said. I think the Board plays an important role in the 
oversight of rail service, and I think that the rail service 
metrics that you advocated for were helpful for better 
informing the Board's decisionmaking. I think, you know, one of 
the first steps is always to shine a light: letters, calls, 
requests for additional information, listening sessions.
    The Board has other tools at its disposal. We've talked 
about the investigative authority. The Board is hosting 
informal meetings right now to look at the adequacy of its 
directed service regulations. If confirmed, I would certainly 
approach the job with an understanding of the importance of 
strong rail service to the country and to the country's 
economy, and I would also stay mindful of the fact that Board 
actions can have broader effects on the network.
    The Chairman. OK. Thank you.
    Senator Nelson.
    Senator Nelson. Ms. Slaughter, yesterday in the hearing 
with Mr. Zuckerberg, I asked him if he had notified the 87 
million people that their data was stolen as a result of the 
Cambridge Analytica scandal that you know about, and he did not 
answer directly that question. So he talked about how that they 
had withdrawn, said it was a mistake, and so forth, but did not 
answer the question about notification of the 87 million that 
their data has been stolen. So then I asked him, ``Did you 
notify the FTC?'' and he said, ``No.''
    The FTC is the lead Federal agency protecting consumers by 
bringing enforcement actions against companies that encounter 
data breaches, and in this case, due to being asleep at the 
switch, in their words, in Zuckerberg's words, that they 
trusted, and they should not have trusted, Cambridge Analytica.
    Do you agree that the FTC should continue bringing such 
data security enforcement actions?
    Ms. Slaughter. Thank you, Senator, for the question. I am 
very acutely aware of this Committee and the American public's 
interest in the Facebook matter specifically. I want to be very 
careful because I'm also aware that the Commission has 
confirmed an open investigation into Facebook, and I don't want 
to say anything to prejudice that particular investigation in 
any way. But as a general matter, I will say that, yes, I think 
the Commission can and should and must continue to monitor data 
breach issues carefully and bring enforcement cases wherever 
appropriate.
    Senator Nelson. Right. And from that, I assume, and you 
tell me if my assumption is correct, therefore, to protect the 
privacy of the American public and protect their consumer data.
    Ms. Slaughter. Yes, that's correct, Senator.
    Senator Nelson. OK. Mr. Fuchs, your first name is Patrick, 
but your fellow staff members tell me that your name is Paco.
    [Laughter.]
    Senator Nelson. Please explain.
    [Laughter.]
    Mr. Fuchs. One of my older brothers is just a couple years 
older than me, and my parents said ``Paco'' instead of 
``Patrick'' to make it easier on his pronunciation. And I went 
to kindergarten, my kindergarten teacher loved it, and I went 
to the same school for 10 years, and it stuck.
    Senator Nelson. OK.
    [Laughter.]
    Senator Nelson. So----
    Senator Wicker. [Off microphone.]
    [Laughter.]
    Senator Nelson. Just a little entertainment, Senator 
Wicker.
    [Laughter.]
    Senator Nelson. All right. So we've got an Amtrak, and 
there are some folks that want to shut down Amtrak because they 
don't think that the ridership is there. There are certain 
segments of the service, such as the Gulf Coast, Senator Wicker 
included, that used to run from New Orleans all the way to 
Orlando, and after Katrina, the tracks were blown apart, and 
they did not reinstate the service. Do you have any opinion 
about this?
    Mr. Fuchs. Thank you for the question, Senator. I know it's 
an important issue for folks in the Gulf Coast, and there's a 
lot of passion in the area about it. As a result of your 
efforts and the efforts of Senators Wicker and Cochran, there 
were significant additional resources in the last two 
appropriation bills for the restoration or initiation of rail 
service, and I know advocates for the route found those 
resources and will find those resources to be very helpful.
    Currently, there is not a filing on the matter before the 
Board, and the role of the Board would be to set reasonable 
terms and compensation if the host railroad and Amtrak couldn't 
agree on the matter through one-on-one dialogues. So if there 
was a filing, the Board certainly has an important role to 
play.
    Senator Nelson. OK. I'd like you also to think about the 
future of high-speed rail. Unfortunately, when we had $2.5 
billion sitting on the table for the first high-speed rail in 
America, and it would have been the first because it ran right 
down the middle of Interstate 4, of which the right-of-way was 
already there, the state of Florida and the Governor chose to 
ignore that by putting it together, and, therefore, we don't 
have high-speed rail in America, and we are decades and decades 
behind the rest of the world, particularly Europe and Asia.
    But one thing, that people in America would choose to fly 
or to drive because the passenger trains don't run on time. 
Now, fortunately, Acela seems to be doing a pretty good job, 
and I can tell you that now when I go or come from New York, I 
certainly prefer to take the Acela instead of going through the 
hassle of going through La Guardia.
    What can you all do, as the Transportation Board, what can 
you do to try to tune them up where they will actually be on 
time?
    Ms. Schultz. Thank you for the question, Senator. And first 
I would like to say that I couldn't agree more with you 
regarding the policy and advocacy for high-speed rail here in 
the United States. In terms of what--I believe your question 
was, What was the Board's role to tune them up as it pertains 
to service challenges----
    Senator Nelson. So that you have reliable service and on-
time service.
    Ms. Schultz. Sure. So, again, on-time service impacts the 
economic vitality of the entire rail network. Recognize--I 
think the first step would be to recognize the importance of 
service challenges and to address them as expeditiously as 
possible. The way to do that, I believe, is to further the 
current actions of the Board, which is to partner with 
stakeholders, obtaining current metrics, and working with them 
to try to quickly analyze what is causing the service 
challenge. And so what I could say today is, is that I would 
commit to furthering the work of the Board and to recognize the 
importance of addressing service issues in a very timely 
fashion.
    Senator Nelson. Thanks.
    The Chairman. Thank you, Senator Nelson.
    Senator Wicker.

              STATEMENT OF HON. ROGER F. WICKER, 
                 U.S. SENATOR FROM MISSISSIPPI

    Senator Wicker. OK. Let's just pick up on that.
    Mr. Fuchs, there is a problem with timeliness, and I agree 
with Senator Nelson, that passengers will use the service if 
it's on time and reliable. And amen about the Acela. I have to 
go to New York every now and then, and it's a whole lot easier 
on me just to walk right in there.
    Amtrak, the law says Amtrak has preference over freight 
transportation using rail--in using a rail line.
    Now, Mr. Fuchs, you talked about statutory directives. You 
agree that's a statutory directive, do you not?
    Mr. Fuchs. Yes, Senator, preference is in statute.
    Senator Wicker. Yes, OK. So in reality, freight railroads 
have consistently denied such preference to Amtrak. In fact, 
only 47 percent of long-distance trains were on time at 
stations in Fiscal Year 2017. And this is largely attributable 
to freights refusing to provide preference to passenger rail. 
For the routes that travel through my home state of 
Mississippi, it's even worse.
    Based on this reality, do you feel that host railroads are 
on average following the law? The law states if Amtrak and a 
freight railroad cannot agree on terms, of an agreement for 
Amtrak to assess freight railroads' rail lines, the Surface 
Transportation Board, quote, shall prescribe reasonable terms 
and conditions for that access.
    So, Ms. Schultz, it's more than a partnership. There is 
statutory directive there.
    So, Mr. Fuchs, can you tell me what you think the 
reasonable terms and conditions are with respect to Amtrak, and 
given Amtrak's recent on-time performance report card, what do 
you believe--why do you believe some railroads are performing 
better than others?
    Mr. Fuchs. Thank you for the question, Senator. On the 
first element of the question, I think that reasonable terms 
and compensation are case specific. In fact, there is a case 
pending before the Board that's been adjudicated for a number 
of years on that exact point. So, the reasonable terms and 
compensation are dependent on the particular route.
    As a general note on on-time performance, it's linked to a 
Board investigations under the statute. And the STB attempted 
to regulate on-time performance, and that rule was actually 
vacated by the Eighth Circuit. And the FRA-Amtrak joint rule is 
currently pending before the D.C. Circuit, and depending on the 
decision there, I think the Board would assess what action to 
take. And whatever action the Board took wouldn't be 
necessarily categorical for the rail system, but it would be 
based on a complaint for an individual line. So I would be 
hesitant to make a sweeping statement, and I would evaluate any 
case that came before the Board from a fair and open 
perspective.
    Senator Wicker. OK. Well, I think you know where at least 
two members of the Committee are on that.
    And then following up also on the Gulf Coast rail line, are 
you saying, Mr. Fuchs, that the role of the STB is going to be 
limited to whether a fouling takes place with regard to this 
Gulf Coast rail service?
    Mr. Fuchs. Yes, Senator.
    Senator Wicker. OK.
    Mr. Fuchs. If the host railroad and Amtrak could not agree 
on mutual conditions for the restoration or initiation of 
service, then a party could come before the Board, petition the 
Board, and ask the Board to prescribe, as you mentioned, 
reasonable terms and conditions. It's based on those filings 
and the evidence that is submitted by both parties that the 
Board would make its decision.
    Senator Wicker. OK. Well, you've been very helpful at the 
Committee level, and I won't prejudice your decision after 
you're confirmed.
    One other thing, the STB's primary function is to serve as 
an arbiter when there is no effective rail competition. In 
several recent decisions from the STB, Board members have 
commented that the Board's principal method for resolving 
disputes, the standalone cost method, is not effective and 
needs to be reformed. You're familiar with this, aren't you, 
Mr. Fuchs? [No audible response.]
    Senator Wicker. We passed legislation more than 2 years ago 
requesting the Board find new methods for rate disputes, and 
yet we have not seen any meaningful reforms. So what about 
this? And can each of you commit to make it a priority to 
actually follow through on the legislation that we pass to find 
a better method of determining the costs?
    And I'll start with you, Mr. Fuchs.
    Mr. Fuchs. Yes, Senator. And I agree with you that 
improving dispute resolution processes was a significant 
component of the STB Reauthorization Act of 2015. I see kind of 
three different actions that the Board should be thinking about 
here. First is that the STB launched an Advance Notice of 
Proposed Rulemaking, taking a look at whether or not there were 
alternative methodologies for small shippers. Second, the Board 
convened an internal rate reform task force trying to take an 
expansive view of the lay of the land about all possible 
alternative methodologies. And, third, the Board has been 
working on whether or not they can elevate and improve their 
alternatives dispute resolution processes, and alternative to 
litigation. So certainly, if confirmed, I would collaborate 
with other Board members and work hard to see if there's a 
better way of doing business on rate cases consistent with the 
Board's statutory authorities and sound principles of 
economics.
    Senator Wicker. Do I have time for Ms. Schultz?
    The Chairman. Sure.
    Senator Wicker. Yes, sir.
    Ms. Schultz.
    Ms. Schultz. Yes, Senator. I recognize the importance of 
the pending regulations before the Board. And I'm also aware 
that some of them have been outstanding for a fairly long 
period of time. I'm also very much still learning about some of 
these very complex and challenging economic principles.
    Senator Wicker. Right.
    Ms. Schultz. And what I do know is that we do have an 
internal task force that has been assigned to work on some of 
these issues. And I very much look forward to working with them 
as well as obtaining much more information about these very 
important issues from stakeholders and addressing and 
ultimately resolving some of these issues.
    Senator Wicker. OK. Well, just be aware, both of you, after 
your confirmation, that the law, signed into law by the 
President, directs the Board to find new methods of rate 
disputes. Thank you.
    And thank you for your indulgence, Mr. Chairman.
    The Chairman. Thank you, Senator Wicker.
    Senator Cortez Masto.

           STATEMENT OF HON. CATHERINE CORTEZ MASTO, 
                    U.S. SENATOR FROM NEVADA

    Senator Cortez Masto. Welcome to all three of you. 
Congratulations on your nominations.
    Mr. Fuchs and Ms. Schultz, let me start with you. As I'm 
sure you're aware, we have a major concern regarding an ill-
conceived proposal to move and store nuclear waste at Yucca 
Mountain in my home State of Nevada. Specifically, the State 
takes exception to the science and safety of the site and the 
transportation of this waste product. This project would 
require the shipment of waste from 76 sites in 9,500 rail casks 
within 2,800 trains and 2,650 trucks hauling one case each to 
Yucca Mountain for over 50 years. Millions of Americans and a 
majority of congressional districts in the country would be 
impacted by shipments to Yucca Mountain. And 300 miles of new 
railroad would be required, which brings in the STB.
    As a member of the Surface Transportation Board, can I get 
a commitment from each of you that during your term on the 
Board you will be transparent, consider safety concerns, and 
work to include, when appropriate, my office as you consider 
any matters related to this flawed concept?
    Ms. Schultz. Yes, Senator, I can commit to that.
    Mr. Fuchs. Yes, Senator.
    Senator Cortez Masto. Are either of you aware that DOE has 
an application for a certificate of public convenience and 
necessity pending before STB on this very project, which is 
involving the buildout of railroad from Caliente to Yucca 
Mountain?
    Mr. Fuchs. Yes, Senator, I'm aware there's a pending 
construction application.
    Ms. Schultz. I am as well.
    Senator Cortez Masto. Have either of you formed an opinion 
about the DOE application?
    Ms. Schultz. No, I have not.
    Mr. Fuchs. No, Senator.
    Senator Cortez Masto. Is there any reason that you should 
be recused from making a decision on this particular 
application?
    Ms. Schultz. No.
    Mr. Fuchs. No, Senator.
    Senator Cortez Masto. OK. Thank you. I also want to raise 
an additional--an issue of concern, particularly to our rural 
communities, and I think this is something you'll hear from my 
other colleagues as well, and I've heard a little bit about it. 
But the California Zephyr Amtrak line is a vital link in our 
communities, specifically some of our rural communities, Elko, 
Winnemucca, and Reno. These are places that depend on the 
reliable rail service to bring travelers in and out of their 
communities, including the annual average of about 84,000 
Nevada riders who travel on the line.
    And just to give you a sense of the impact, I recently 
received a letter from the Mayor of Winnemucca, who stated that 
rural Nevada needs help. The Amtrak train service is an 
important part of the economic vitality and social fabric of my 
community. Many of our veterans and seniors use Amtrak to 
access medical services in Reno and other areas, and there's 
concern that the rail service will be eliminated.
    And so, again, hereto can I get your commitment to bear 
these kinds of concerns in mind and stay in contact with my 
office as you're involved in cases of rail access and reliable 
services between the freight and passenger rail sectors in 
Nevada and the rest of the country?
    Mr. Fuchs. Yes, Senator.
    Ms. Schultz. Yes, Senator.
    Senator Cortez Masto. Thank you.
    Ms. Slaughter, can I get your commitment to be an active 
consumer protection agency, including on marketing practices 
and data security and privacy?
    Ms. Slaughter. Yes, Senator, I'm happy to make that 
commitment.
    Senator Cortez Masto. Thank you. And in your opinion, what 
is the FTC's role in handling the broader consumer protections 
of this Internet age, which include the Internet of Things? 
Have you thought about this in the role that you will--the 
agency should be playing as we build out the Internet of Things 
and the conversation that this Committee constantly has on this 
new world?
    Ms. Slaughter. Yes, Senator. Thank you for the question. I 
think that's a very important issue and one of those emerging 
technological innovations that I spoke about a little bit in my 
opening. The Internet of Things makes all sorts of connectivity 
possible, and it makes possible exciting new developments, but 
that also opens consumers and their data up to substantial risk 
in some cases. I think it's the Commission's responsibility, 
and if I am confirmed, I would make it my priority to actively 
monitor the Internet of Things, to ensure companies are being 
responsible stewards of data and not engaging in the unfair and 
deceptive practices that are prohibited by the FTC Act.
    Senator Cortez Masto. Thank you. And then back to Ms. 
Schultz and Mr. Fuchs, again, with this new technology, are you 
aware that in Nevada we are actually testing Hyperloop One?
    Mr. Fuchs. Yes, Senator.
    Ms. Schultz. Yes.
    Senator Cortez Masto. And knowing that, is this something 
that you think would be on your radar as well, this new 
technology and a new passenger kind of--I don't know what you 
would really call it. It's kind of freight, but not really, 
and--thoughts on and your involvement and oversight of that, if 
any.
    Ms. Schultz. Just should an issue pertaining to the Board's 
jurisdiction come before us, I would commit to learning much 
more about it as well as presumably addressing, you know, a 
case of first impression, if you will, regarding this new 
technology.
    Mr. Fuchs. I completely agree. As I understand it right 
now, it's of an unsettled matter of law because it's such a new 
and innovative technology, in terms of how it corresponds with 
the Board's definition of ``rail carrier.'' So I think Michelle 
is absolutely right, it would be a case of first impression, 
and if confirmed, we would convene the Board's legal staff and 
come to a determination on it.
    Senator Cortez Masto. Thank you. I notice my time is up. 
Thank you very much.
    Thank you.
    The Chairman. Thank you, Senator Cortez Masto.
    Senator Cantwell.

               STATEMENT OF HON. MARIA CANTWELL, 
                  U.S. SENATOR FROM WASHINGTON

    Senator Cantwell. Thank you, Mr. Chairman.
    And again congratulations to all the nominees.
    Ms. Schultz and Mr. Fuchs, agricultural growers in the 
Pacific Northwest, and really across the Nation, continue to 
see challenges in getting their products to market due to rail 
congestion and rail system issues writ large. And while we've 
seen some improvements in that, you could say different 
dynamics and changing with the product mix of what's being 
moved, that is, changes in transport on the fossil fuel side, 
but we still have many steps that need to be taken to help us 
on this issue. What are your suggestions?
    Ms. Schultz. Again, I know that the Board has an internal 
task force that currently works to address the challenges 
between shippers and rail, railroads. Recently, the Board has 
required additional reporting of metrics, and the result of 
that requirement has been an ability for the Board and for 
stakeholders to more quickly address challenge issues and work 
toward a resolution.
    Mr. Fuchs. Thank you, Senator. I've read recent letters 
from the National Grain and Feed Association and the Fertilizer 
Institute pointing to some of those challenges. And as I 
mentioned, I think the first step is always to shine a light: 
collect more data, listening sessions, letters, calls. And I 
think another tool in the Board's toolbox is their 
investigative authority and they are also hosting informal 
meetings on directed service regulations.
    And then, more broadly, anytime that you can kind of 
informally resolve issues without getting to litigation or 
formal Board action, I think that can be a really positive 
step. And the Board maintains a rail customer and public 
assistance program that actually processed about 130 service-
related disputes and facilitated prompt responses. So 
certainly, if confirmed, I would try and emphasize and elevate 
that program and make sure that agricultural shippers 
nationwide know of the potential services and can benefit if 
needed.
    Senator Cantwell. Well, I guess mark me down for I want new 
congestion strategies that don't include pricing agriculture 
off of rails, which has I think been the traditional response 
by the agency, is, ``We'll just raise the price and see who can 
pay it,'' and then the consequence is a lot of shippers don't 
get to ship when the real issue is just congestion. We have an 
energy report on energy commodities that show this, even energy 
products themselves competing with each other to the degree of 
knocking ability for utilities to even serve because they can't 
get the product to them.
    So we have a rail congestion issue, and we, in the 
Northwest, know very well when you try to plan for 
alternatives, what happened when we tried to use an alternative 
route sooner maybe than it should have been used, and then we 
had a horrific accident. So this issue isn't going away. Well, 
maybe I'll put a little caveat. If the President keeps 
persistent on his tariff idea, maybe we'll have a problem, we 
won't have a problem. But I'm hoping he won't and that our 
agricultural commodities will continue to grow with great 
ability in our foreign markets.
    If that continues, like I think it will, because we have a 
rising middle class around the world, and I think America knows 
how to grow great product, I want it to be able to get to 
market. And so I hope that you guys will make this a priority, 
of thinking of new strategies beyond just congestion pricing 
that helps keep agriculture getting to its marketplace.
    Mr. Fuchs. Absolutely.
    Senator Cantwell. Thank you.
    Ms. Slaughter, we had a chance yesterday with Mr. 
Zuckerberg, he said something when I asked him about the 
European rules on privacy, he said, ``well, we might have a 
different sensibility here in the U.S.'' What are your 
sensibilities on privacy?
    Ms. Slaughter. Thank you, Senator, for the question. I 
think that the implementation of the GDPR in Europe is 
something that we should monitor closely and watch carefully to 
see if it has any instructive lessons for the U.S. I think 
privacy is an important value for our citizens and our country, 
and it's one that if I am lucky enough to be confirmed as a 
Commissioner is one that I will take seriously and making sure 
that our laws are enforced as robustly as possible to protect 
privacy.
    Senator Cantwell. So do you have any thoughts on their 
current draft, on their moving forward?
    Ms. Slaughter. On the GDPR?
    Senator Cantwell. Yes. Mm-hmm.
    Ms. Slaughter. I think it's in the early stages of 
implementation at this point. So I think it's an innovative 
approach that they're taking and one that we should watch 
carefully. And I look forward to, if I am confirmed, working 
with the expert staff at the FTC and my fellow Commissioners to 
figure out how what's working there might work here or not.
    Senator Cantwell. Well, I think one thing is clear: we had 
a Consent Decree from the FTC that wasn't followed. So I 
think--I hope you will take that into consideration when you're 
thinking about your sensibilities on this issue. But clearly we 
have to do more unless we want consumers to just vote with 
their feet.
    So thank you.
    The Chairman. Thank you, Senator Cantwell.
    Senator Markey.

               STATEMENT OF HON. EDWARD MARKEY, 
                U.S. SENATOR FROM MASSACHUSETTS

    Senator Markey. Great. Thank you, Mr. Chairman, very much. 
And we thank all of the candidates here today. And it's good to 
see you, Becca, and I see Justin out there in the audience, and 
we congratulate you on your nomination and your service to our 
country.
    So let me--I'm just going to follow up a little bit here on 
the line which Senator Cantwell was going down, but move over 
to another question. Federal Trade Commissioner McSweeny wrote, 
``Scrapping the FCC's net neutrality rules will harm consumers 
and content creators, and the Federal Trade Commission isn't 
going to be able to stop it. The Federal Trade Commission does 
not have specialized expertise in telecommunications. We don't 
have engineers with technical experience and data network 
management practices. These are very real and significant 
limits to the effectiveness of our tools and ensuring that 
networks are open and free of harmful discrimination.''
    Would you agree with Commissioner McSweeny, that the FTC 
has limited tools for preventing blocking, throttling, and paid 
prioritization of ISPs?
    Ms. Slaughter. Thank you, Senator, for the question. And 
first let me say it's really been a pleasure and a privilege 
for me to work with your staff, for my husband, who formerly 
served on your staff, on these issues and others.
    Senator Markey. Her husband was my counsel.
    Ms. Slaughter. Yes.
    [Laughter.]
    Senator Markey. Yes.
    Ms. Slaughter. For many years. And I very much respect your 
leadership on the issue of net neutrality.
    Senator Markey. Thank you.
    Ms. Slaughter. As you well know, your CRA is currently 
pending in the Senate. And I think Commissioner McSweeny raised 
some important points about the limitations of the FTC's 
jurisdiction. If I am lucky enough to be confirmed as a 
Commissioner, what I will commit to you is that I am interested 
in enforcing the law to its fullest extent. I am interested in 
working with my fellow Commissioners and the staff at the 
agency to point out areas where I think the law might need to 
be improved to better protect consumers.
    Senator Markey. OK, good. Thank you.
    And there's a growing body of evidence from child 
development experts--I touched on this yesterday with Mark 
Zuckerberg--that technologies are being purposely made to be 
addictive, and here's the goal, to eventually generate revenue 
from digital advertising, put more simply, hook the young 
enough on these devices so that they're just--they're just 
completely unable to ever disconnect.
    Under the Commission's COPPA, Children's Online Privacy 
Protection Act mandate, what will you do to ensure that child-
directed applications and the parent consent process are 
fashioned in ways that really protect privacy and ensure that 
parents can make informed decisions about their children?
    Ms. Slaughter. Thank you for the question, Senator.
    Senator Markey. And I know you just had a baby 2 weeks ago.
    Ms. Slaughter. I did. I did.
    Senator Markey. So thank you--thank you for being here in 
such good form.
    Ms. Slaughter. Well, on behalf of my baby and my other 
children, as a parent, this is an issue that's really important 
to me. You know, my 5-year-old learned to use a tablet very 
early, so early that when he would go to a TV screen, he would 
try to swipe across it to get it to turn on. And that's great 
in some ways, he's gotten important skills and learned 
important things. But I do very much share the concern about 
addictive technology and making sure that children, in 
particular, are protected. And so I think COPPA provides the 
Commission with very important tools that should be enforced to 
their fullest extent so that children who don't really have the 
ability to look out for themselves are appropriately protected.
    Senator Markey. Great. And, you know, the hearing yesterday 
with Mark Zuckerberg really is triggered by the Consent Decree 
by Facebook with the Federal Trade Commission in 2011. And that 
Consent Decree really put Facebook on privacy probation, you 
know, for the last 7 years. And they were violative of that 
Consent Decree.
    So the Federal Trade Commission plays a big, big role in 
protecting privacy. And so, from my perspective, I'm just 
wondering how you feel about the need to put stronger 
protections on the books, not just for adults, but for kids as 
well?
    Ms. Slaughter. Thank you, Senator. I want to, as I said 
earlier, be very careful talking about the Facebook case in 
particular because, as you've noted, there was a Consent 
Decree, and the Commission has confirmed an open investigation 
into it and into Facebook. I don't want to prejudice that 
investigation or the results of that investigation in any way. 
I will just say, as a general matter, it is important for the 
Commission to enforce privacy commitments and privacy rules 
vigorously.
    Senator Markey. Great.
    OK. Thank you, Mr. Chairman.
    The Chairman. Thank you, Senator Markey.
    And the Senator from Massachusetts and I have a different, 
slightly different, view about how to deal with the issue of 
net neutrality, and I believe the only way is for--ultimately, 
to settle the issue of net neutrality is for Congress to come 
up with a bipartisan legislative solution. And so just as a 
follow-up to his line of questioning, would you work with us? 
Do you agree that Congress should work to reach a bipartisan 
legislative solution on this issue?
    Ms. Slaughter. Thank you, Senator, for the question. I have 
had the privilege for many years of trying to work on 
bipartisan legislative solutions here in Congress. I think if 
I'm lucky enough to be confirmed to the FTC, my role would be 
slightly different. I respect the role of Congress in 
developing consensus where it exists and passing new statutes. 
At the Commission, my role would really be to enforce the law 
as it's written today and to work with my fellow Commissioners 
and the staff at the agency to come back to you with 
recommendations for how the law might be changed. So you have 
my commitment to do that.
    The Chairman. OK. Well, I think the ambiguity in the law 
and the courts and everywhere else and the agency, it really 
points the need for Congress to set clear rules of the road on 
this issue.
    But Senator Inhofe is up next.

                 STATEMENT OF HON. JIM INHOFE, 
                   U.S. SENATOR FROM OKLAHOMA

    Senator Inhofe. Thank you, Mr. Chairman.
    So that the--I think our witnesses all realize that we have 
a little bit of a problem, it seems to be a problem every week, 
and that is that we have this Committee and the Environment and 
Public Works Committee with nine members in common, and they 
always meet at the same time. So that's the reason you don't 
have a full house now, but I can assure you that they are 
paying attention.
    And by the way, I enjoyed our visit, Ms. Slaughter. I'm 
just--I'm so proud of you being here with that little tiny 
baby. Hold that little baby up.
    [Laughter.]
    Senator Inhofe. Isn't that--oh, we can't see the pink 
ribbon.
    [Laughter.]
    Senator Inhofe. There it is. That's good. That's good. Yes.
    I told Ms. Slaughter that my wife and I have been married 
58 years, and we have 28 kids and grandkids, and you now have 
three children. You need to start now and have a fourth child 
because the math doesn't work unless you start with four.
    [Laughter.]
    Senator Inhofe. All right. Let me just say something about 
the witnesses who are here, or the nominees, who are here 
today. I'm going to support all three of you, and I think that 
there's a--for a different reason than maybe some of the 
others, and that is I like to see them coming from different 
perspectives.
    Now, Patrick, you know everything there is to know on this 
issue because of the background that you have and the time that 
you've spent.
    And, of course, Ms. Schultz, you come from the private 
sector. You know some of the problems you get from the 
bureaucracy, and you can address those.
    And, of course, Ms. Slaughter, you have extensive 
background, of course, with Chuck Schumer and the others.
    So I will look forward to supporting all three of you. Let 
me just real quickly run over some questions and then go back 
to the other committee meeting.
    Patrick, as a member of the Board, how would you facilitate 
collaboration with other Board members to expedite 
decisionmaking in these types of cases? And you've been around 
that for a long time. What are your ideas?
    Mr. Fuchs. Thank you for the question, Senator Inhofe. I 
think the Chairman's legislation had authority for a majority 
of Board members to meet on pending matters subject to 
appropriate disclosure rules, and I think that authority is 
really helpful for Board members coming together and 
collaborating. I think generally on the theme of making 
decisions expeditiously, the Board recently changed their ex 
parte rules to take in information more quickly and more 
comprehensively from stakeholders, and I think taking in that 
information and then using that Section 5 authority, that 
meeting authority, to collaborate with Board members would be 
really helpful for building consensus and coming to resolution 
on issues.
    Senator Inhofe. Uh-huh. That's good.
    And, Ms. Schultz, with your private sector experience 
dealing with sometimes competing regulations, how would you 
bring that experience to your work as a member of the Surface 
Transportation Board?
    Ms. Schultz. Sure. So in my role at SEPTA, I'm currently in 
the Corporate Division and tasked with a number of construction 
projects, including the rebuilding of a railroad line from 
Elwyn to Wawa that's about 3.5 miles. And part of what I've 
been working on with that project is compliance with local, 
State, and Federal laws, including, you know, stormwater as 
well as working with the Pennsylvania Public Utility Commission 
for grade crossings.
    So I am very much familiar with the overlap between local, 
State, and Federal laws. And I think the perspective that I 
would bring to the Board are the challenges that working within 
all those different laws sometimes presents to construction 
projects.
    Senator Inhofe. Yes. Yes, and I agree with that. Good. 
Good.
    Ms. Slaughter, you're fully familiar with all of the tools 
that are available to you, as a Federal Trade Commissioner. And 
is there anything you could talk about in how you can better 
use the tools to promote fair competition? Because the tools 
have been there. There is some criticism as to, have they 
really been utilized properly? Do you have any ideas on that?
    Ms. Slaughter. Thank you, Senator, for the question. And 
thank you for your guidance about family life, too. I'm very, 
very lucky to have such a supportive husband and wonderful 
father in Justin over there with the baby, so he deserves a lot 
of credit.
    In response to your question, I am particularly interested 
in merger retrospectives, an idea Mr. Simons has talked about. 
I want to take a look at what has been done before and how the 
Commission has processed mergers in the past so that we can 
learn lessons about what might be done differently going 
forward. I think that would be a very valuable tool.
    Senator Inhofe. Yes. Well, that's good.
    Well, I appreciate it very much, and I look forward to 
working with all three of you.
    Thank you, Mr. Chairman.
    The Chairman. Thank you, Senator Inhofe.
    Senator Heller.

                STATEMENT OF HON. DEAN HELLER, 
                    U.S. SENATOR FROM NEVADA

    Senator Heller. Mr. Chairman, thank you.
    And to the witnesses that are here, congratulations to all 
three of you.
    And to Ms. Slaughter, I'll probably be asking most of my 
questions to the other two, so you can enjoy yourself for a few 
minutes, but I do want to congratulate you and welcome you to 
the cause.
    But I do want to talk to those who are looking at the 
Surface Transportation Board nominees, and I want to piggyback 
a little bit on what my colleague from Nevada said on the other 
side of the aisle when it comes to railroads and freeways.
    We have a new designated monument in the state of Nevada. 
Are you familiar with the laws and regulations that would allow 
you or not allow you to build a new freeway or railroad through 
a monument?
    Mr. Fuchs. Thank you, Senator. I'm generally familiar with 
the environmental laws applicable to the Board.
    Senator Heller. So the question, the follow-up question, 
would be, Can you build a railroad or a freeway through a newly 
designated monument?
    Mr. Fuchs. Senator, whenever there is a rail construction 
application pending before the Board, depending on who is the 
lead agency or if the Board is a cooperating agency, the Board 
has to thoroughly consider the impacts on the human and natural 
environment, and it has very wide authority to impose 
mitigation conditions as well as to disapprove applications if 
anything is inconsistent with applicable law.
    Senator Heller. So are you saying that there is a chance 
that you could build a railroad or a freeway through a 
monument?
    Mr. Fuchs. I think such an alignment would have a very 
difficult time in an Environmental Impact Statement.
    Senator Heller. Do you agree, Ms. Schultz?
    Ms. Schultz. Senator, I'm not quite as familiar with the 
law surrounding a historical monument. What I can say here 
today is that I would promise to become much more familiar with 
those laws and review them and adjudicate them in a fair and 
impartial manner.
    Senator Heller. According to my colleague on the other 
side, I think you both answered affirmative that you're 
familiar with the proposed rail alignment and the application 
for this particular railroad for the purpose of hauling nuclear 
waste?
    Mr. Fuchs. Yes, Senator, I'm familiar with the application 
for the Caliente line.
    Senator Heller. I'm looking at the new proposal now that 
goes around the proposed monument. I have a comment and a quote 
here from a gentleman by the name of Bob Halstead. He is the 
Executive Director for the State of Nevada in the Office of 
Nuclear Projects, and this is what he says: The recent 
designation of the Basin and Range National Monument shown in 
this attached map, which I'm happy to share with you, and the 
related conservation easement for the area around what's quoted 
as the city land sculpture installed in Garden Valley would 
make future considerations of the Caliente route extremely 
difficult. Ranchers would likely file legal challenges against 
the Caliente route, adverse impacts on grazing allotments, and 
water resources.
    So in the process of taking a look at these proposed rail 
alignments, do you take into consideration or anticipate that 
you would take into consideration States' concerns for that 
designation?
    Mr. Fuchs. Absolutely, Senator. The Board's environmental 
review process has extensive public participation protocols. 
When the Board was initially considering the application in the 
2008 to 2010 range, I think it actually went out to Nevada to 
host a public hearing. So I would expect a robust public 
participation opportunity.
    Ms. Schultz. I concur with Patrick's statement, Senator. I 
would--certainly, the input from folks within the region as 
well as stakeholders would be something that the Board would 
certainly have to take under consideration in rendering its 
decision.
    Senator Heller. On the proposed application, in 2017, the 
President put in his budget, the application to renew the 
license for Yucca Mountain, and in 2017 I took that out of the 
budget. In 2018, the President put it back in his budget, and 
this year I took it back out. I'm going to guess, Mr. Chairman, 
in 2019, he puts it back in, and in 2019, I take it out.
    At what point do you move forward with a proposed 
application like this if the licensing agreement is not 
available or proposed for Yucca Mountain?
    Mr. Fuchs. Thank you for the question, Senator. I agree 
with you. I think the broader issue is the DOE application 
before the Nuclear Regulatory Commission, and the Caliente line 
is just one part of that, which is why the Board was a 
cooperating agency, whereas DOE was the lead agency on the 
Environmental Impact Statement. So I would say that it's just 
one aspect of the proposal. And typically, as I understand it, 
it's not the Board's practice to get out in front of a broader 
issue where it's not the lead agency.
    Senator Heller. And that's the question and the answer that 
you gave me yesterday when you were in the office, and I do 
appreciate that because I do want to make sure that the Board 
does not get in front of this application process because I 
anticipate, as long as I'm here, that we will slow that 
application process down or, in fact, continue to remove it 
from the budget.
    Ms. Schultz, do you agree?
    Ms. Schultz. Senator, what I--what I can say right now is 
that I would review the license application in a fair and 
impartial manner should it--should it come before--be revisited 
before the Board again.
    Senator Heller. OK.
    Mr. Chairman.
    The Chairman. Thank you, Senator Heller.
    Senator Peters.

                STATEMENT OF HON. GARY PETERS, 
                   U.S. SENATOR FROM MICHIGAN

    Senator Peters. Thank you, Mr. Chairman.
    And to the three witnesses, welcome, welcome to the 
Committee.
    The first question is to Mr. Fuchs and Ms. Schultz. In 
March, the Alliance for Automotive Manufacturers sent a letter 
to the Surface Transportation Board about a very serious 
service issue impacting the transportation of finished 
vehicles.
    According to the alliance, manufacturers continue to 
experience a very serious problem with rail service that is 
attributable to a slowdown in the rail network. The service 
problem means that there are substantial delays in getting 
vehicles to consumers. It also means that manufacturers have 
incurred significant costs to transport and to store those 
vehicles. There is even some concern that some assembly plants 
may have to temporarily shut down as a result of the service 
issues. The Auto Alliance believes that the railroads really 
haven't come up with an adequate plan.
    So my question to each of you is, What role can the STB 
play to help resolve these service issues that are having a 
significant impact on the auto industry? And would you be 
committed to working on this issue?
    Ms. Schultz, we'll start with you.
    Ms. Schultz. Thank you for the question, Senator. Yes. 
First I would like to take a moment to recognize that service 
delays have a significant economic impact on the folks that are 
relying upon railroads to carry those goods. I can say today 
that I would commit my attention to these very important 
matters and to work very closely with the Board's staff that 
partners with stakeholders to address these issues.
    Senator Peters. Thank you.
    Mr. Fuchs.
    Mr. Fuchs. Thank you, Senator Peters. I read the Auto 
Alliance letter, and I certainly saw their concerns about the 
serious shortage of bi-level and tri-level cars and missed car 
orders and service delays. I think the first step for the Board 
is always to shine a light, which is why I think the Board has 
requested responses from the railroads about locomotive power 
and other issues. It's important to analyze and scrutinize that 
data. And the Board has other tools at its disposal including 
investigative authority, and it's launching informal meetings 
on its directed service regulations to see whether or not those 
are adequate for addressing service issues.
    And so certainly, if confirmed, I would approach the 
position with an understanding of the importance of strong rail 
service to the economy, and I would also stay mindful of the 
fact that Board actions can have broader effects on the 
network.
    Senator Peters. And another question to both of you as 
well. Earlier this year, a rate case before the Surface 
Transportation Board found in favor of a Michigan-based 
company, Consumers Energy. This is the first time--my 
understanding at least, it's the first time in many years that 
the Board had actually found in favor of a shipper in a rate 
case. And in order to address whether the shipper was facing 
unreasonably high rates, the Board goes through, as you're well 
aware, a very elaborate cost and time-intensive test, and this 
can be extremely challenging for many, many shippers. And while 
Consumers Energy prevailed in this case, there are other 
shippers that face really some significant challenges to bring 
these cases forward despite the impact that it's having on 
their business.
    So my question to the two of you, Do you think this is an 
issue that the Board should address? And what are some ways 
that the Board can simplify this process for shippers that have 
these kinds of concerns?
    We'll start with Mr. Fuchs this time, we'll go the other 
way.
    Mr. Fuchs. Thank you, Senator. And I think that there are 
ongoing concerns, among many, that the current rate case 
processes available to shippers are unduly costly and complex. 
And I think that's the reason why the Board has issued an 
Advance Notice of Proposed Rulemaking on taking a look at 
whether or not they can make modifications to their existing 
alternative methodologies for very small shippers. They have 
convened an internal rate reform task force to take an 
expansive look at alternative methodologies and bring in some 
of the Board's expert legal and economic staff. And I think 
they're always evaluating whether or not there are alternative 
dispute mechanisms, whether it's arbitration or another means, 
that can be emphasized and used without the need for costly 
litigation.
    So certainly, if confirmed, I would collaborate with other 
Board members and work hard to see if there's a better way to 
review rates consistent with sound principles of economics and 
the Board's statutory authorities.
    Senator Peters. I appreciate that.
    Ms. Schultz.
    Ms. Schultz. I concur with Patrick's statements. I'm aware 
that these cases are very time-consuming and very costly and 
they're challenging. And I know, to Patrick's point, the Board 
does have an internal task force that's looking into these 
important issues, and I look forward to addressing them in a 
timely fashion if confirmed.
    Senator Peters. Great. I appreciate both of your commitment 
to both of these issues. Thank you so much.
    Thank you, Mr. Chairman.
    The Chairman. Thank you, Senator Peters.
    Senator Blunt.

                 STATEMENT OF HON. ROY BLUNT, 
                   U.S. SENATOR FROM MISSOURI

    Senator Blunt. Thank you, Mr. Chairman.
    Thank all three of you for being willing to serve. And I 
appreciate what can happen and needs to happen on both of these 
jobs.
    Ms. Slaughter, yesterday, we had a joint hearing with the 
Judiciary on Facebook, which turned into a little bigger 
discussion than that about generally Facebook and its 
competitors and similar organizations. There seemed to be a 
number of FTC discussions and one or two guidelines set out, 
but my impression is that there hasn't been a lot of follow up 
from FTC or the Congress on whether those guidelines were being 
viewed seriously. I wonder if you have any comments to make 
about the FTC role in both consumers understanding what happens 
when they sign up for a free service like that and 
organizations like that paying attention to what the FCC says 
they should be paying attention to?
    Ms. Slaughter. Thank you, Senator, for the question. I want 
to be very careful in what I say about Facebook specifically 
because, as I'm sure you're aware, the Commission has confirmed 
an open investigation into Facebook, and I don't want to 
prejudice that investigation in any way.
    As a general matter, without speaking specifically about 
any particular company, I think the Commission has a very 
important role to play in policing allegations of either 
anticompetitive conduct or unfair and deceptive trade 
practices. That's a role, an obligation, that I take very 
seriously. If I'm confirmed, I would commit to you that I would 
continue to make that a priority.
    Senator Blunt. Well, I did notice in one of the questions 
to Mr. Zuckerberg about whether he had a monopoly or not, he 
said it didn't feel like a monopoly. But as these things--these 
organizations have grown in such an incredible way of things 
like Facebook and Amazon, and I'm sure they didn't set out 
intending to have the market power they have even in probably 
their greatest anticipation of what could possibly happen. And 
it's an issue that I think we need to be sure that we're paying 
attention to, and that's going to be an important part, I 
think, of the next--the short-term future at least at FTC. And 
who knows during the whole time you're there where, what 
direction, that might take us?
    Surface transportation, obviously an area where when I 
spoke to the Missouri General Assembly when we were on break 
last week--and, you know, Missouri is right in the middle of 
the country and where lots of things come together--and I said, 
you know, location is really one of our great advantages, and 
that would be true for our state, but it's also true for the 
country. You know, Churchill once said, ``there is no country 
more fortunately located than the United States of America,'' 
and our opportunities all over the world benefit from that. But 
whether we make the most of that or don't is largely going to 
be up to things like the regulatory environment at Surface 
Transportation.
    Mr. Fuchs, you've been particularly helpful on this 
Committee of trying to find ways that we could expedite those 
things that needed to be expedited and still continue to 
protect those things that need to be protected, you know, the 
things like you're going to put a railroad bridge right back 
where a railroad bridge was, that should be a different process 
than what you might go through otherwise. And I wonder if you 
have any comments on what you've seen happen in our Committee 
as we try to establish some principles that would be important 
principles for surface transportation?
    Mr. Fuchs. Thank you for the question, Senator. I think 
that your TRAIN Act, which was included in the FAST Act, made 
several important changes for helping expedite the deployment 
of railroad infrastructure while staying cognizant of the 
important protections. And so, there's an ongoing Section 106 
exemption process that FRA and the Advisory Council on Historic 
Preservation are working on. It had provisions for the Federal 
Railroad Administration to streamline the NEPA process, and it 
had a number of exemptions for 4(f) historic preservation 
requirements while staying mindful of the fact of things that 
are truly historic, protecting them.
    But for the example that you cited, some of the routine 
construction activities, providing a little bit more freedom to 
improve railroad infrastructure, which has its own benefits for 
safety and the economy, while staying cognizant of the broader 
environmental framework. So I think that's very helpful, and 
certainly it's kind of an experience and some lessons that I 
would take with me to the Board, if confirmed.
    Senator Blunt. Well, thank you.
    And, Ms. Schultz, thank you again for being willing to 
serve.
    I may have more questions, Mr. Chairman, for the record, 
but that's all I have today.
    The Chairman. Thank you, Senator Blunt.
    I just have a couple of wrap-up questions here. I 
understand we may have one member on the way.
    Just as a sort of again general question, but--and this 
would go to our STB ``noms,'' but another important aspect of 
the STB Reauthorization Act was to further promote 
collaboration among Board members by allowing them to talk with 
one another about official business matters with proper 
disclosure of such discussions. So I'll direct this to both of 
you: If confirmed, do you commit to promoting collaboration 
among the Board members?
    Ms. Schultz. Yes, Senator.
    Mr. Fuchs. Yes, Senator.
    The Chairman. And then I want to ask the question, Ms. 
Slaughter, that has to do with these are kind of, I mean, 
difficult issues, but some have criticized the FTC for 
challenging practices as unfair under the FTC Act where the 
consumer injury seems speculative or otherwise not truly 
substantial, particularly in the context of privacy and data 
security. What factors do you think the FTC should consider in 
determining whether an act or practice causes or is likely to 
cause substantial injury, injury to consumers?
    Ms. Slaughter. Thank you, Senator, for the question. This 
is a difficult issue, particularly in the area, as you know, of 
data privacy and security, where if one's data is stolen, for 
example, one can know that it has been used to perpetrate 
identity fraud or identity theft, but one might not know that 
it hasn't been used to do that. I think the interest of this 
Committee and the American people in recent data breaches and 
issues shows that the American people really perceive data 
theft and data breach as a strong violation of their personal 
data. So I think that's an important thing to consider.
    The Commission needs to work carefully, I believe, to make 
sure, that when we're looking at injury, there is substantial 
injury and that the harm isn't outweighed by any countervailing 
benefits. That's sort of been the principle of the Commission 
for a long time. And so, if confirmed, those are the principles 
I would continue to look at.
    The Chairman. Do you have any concerns about the FTC's case 
selection and enforcement priorities in this area?
    Ms. Slaughter. Sitting here today, I don't. However, if I 
am lucky enough to be confirmed, I would want to work with the 
staff and my fellow Commissioners to make sure we're bringing 
all the appropriate cases that we can within the bounds of the 
law as written today.
    The Chairman. And do you think the FTC ought to provide 
more detailed guidance regarding its interpretation of the FTC 
Act?
    Ms. Slaughter. I think as a general matter, guidance to 
markets and to consumers is always a good thing. Transparency 
is generally helpful. I don't have a view at this moment of 
specific areas where that should be done and hasn't been done, 
but it's a principle that I support as a general matter.
    The Chairman. Yes.
    Is anybody coming?
    Voice. Huh-uh.
    The Chairman. Oh, good. All right.
    Well, look, I appreciate again all of you being here. And 
we're grateful for your service. I do have some--unanimous 
consent--I want to include in the record several letters. We 
have a letter from the fertilizer and agribusiness community 
signed by 21 organizations in support of both Patrick Fuchs and 
Michelle Schultz's nominations, a letter from 22 additional 
organizations in support of both Patrick Fuchs and Michelle 
Schultz's nominations, a letter of support from the Freight 
Rail Customer Alliance in support of Patrick Fuchs' nomination, 
a letter from the Rail Supply Institute in support of Patrick 
Fuchs' nomination, a letter from International Paper in support 
of both Patrick Fuchs' and Michelle Schultz's nominations.
    [The information referred to follows:]

                                                     March 12, 2018
Hon. John Thune,
Chairman,
Committee on Commerce, Science, and Transportation,
Washington, DC.

Hon. Deb Fischer,
Chair,
Subcommittee on Surface Transportation,
Washington, DC.
Hon. Bill Nelson,
Ranking Member,
Committee on Commerce, Science, and Transportation,
Washington, DC.

Hon. Gary Peters,
Ranking Member,
Subcommittee on Surface Transportation,
Washington, DC.

Re: Surface Transportation Board (STB) Nominees; support for Mr. 
            Patrick Fuchs and Ms. Michelle Schultz

Dear Chairman Thune, Ranking Member Nelson, Subcommittee Chair Fischer 
            and Ranking Member Peters:

    On behalf of our members in the fertilizer and agribusiness 
community, we write to express our strong support for the nominations 
of Mr. Patrick Fuchs and Ms. Michelle Schultz to be Members of the 
Surface Transportation Board (STB).
    The STB provides critical rail marketplace oversight for shippers 
in the agriculture sector, many of which are dependent upon a single 
railroad for service. STB's current Commissioners have made great 
progress implementing the STB Reauthorization Act of 2015 (Public Law 
No. 114-110). This law and their efforts are helping the agency better 
reflect the modern day rail marketplace. STB modernization, including 
but not limited to the STB Reauthorization Act of 2015, will help 
farmers, agribusinesses, and manufacturers be more competitive in the 
global marketplace.
    Both nominees have the knowledge and expertise to serve as Board 
Members and to lead and advance efforts to modernize the Agency, which 
is critical to railroads, shippers, and the American economy. It has 
been too long since the STB was fully staffed. We urge you to move as 
quickly as possible to confirm Mr. Fuchs and Ms. Schultz.
    Thank you for your consideration of our views. We look forward to 
working with you in support of the agriculture community and our great 
nation. Should you need further information, please contact Justin 
Louchheim at The Fertilizer Institute at 202-515-2718 or 
jlouchheim@tfi.org or Richard Gupton at the Agricultural Retailers 
Association at 202-595-1699 or Richard@aradc.org.
            Sincerely,

The Fertilizer Institute             Agricultural Retailers Association
Agribusiness Council of Indiana      Alabama Agribusiness Council
Far West Agribusiness Association    Ohio AgriBusiness Association
Florida Fertilizer & Agrichemical    Illinois Fertilizer and Chemical
 Association                          Association
Michigan Agri-Business Association   Michigan Bean Shippers
Minnesota Crop Production Retailers  Nebraska Agri-Business Association
New York State Agribusiness          North Dakota Agricultural
 Association                          Association
Oklahoma Grain and Feed Association  Rocky Mountain Agribusiness
                                      Association
South Dakota Agri-Business           Texas Ag Industries Association
 Association
Western Plant Health Association     Wyoming Ag-Business Association
Wyoming Wheat Marketing Commission
 

Cc: Members of the Senate Committee on Commerce, Science, and 
Transportation
                                 ______
                                 
                                                     April 10, 2018

Hon. John Thune,
Chairman,
Commerce, Science, and Transportation Committee,
U.S. Senate
Washington, DC.

Hon. Bill Nelson,
Ranking Member,
Commerce, Science, and Transportation Committee,
U.S. Senate
Washington, DC.

Dear Chairman Thune and Ranking Member Nelson:

    The undersigned groups, whose members consist of diverse range of 
agricultural producers and agribusinesses, strongly support and 
respectfully urge the Committee on Commerce, Science and Transportation 
to recommend to the U.S. Senate the confirmation of Patrick J. Fuchs 
and Michelle A. Schulz to serve as members of the Surface 
Transportation Board (STB).
    America's transportation infrastructure--and the motor carriers, 
barges and railroads that operate on it--is a critical element of U.S. 
agriculture's world-class productivity and competitiveness, which 
contribute substantially to U.S. job creation and economic growth. 
Farmers, ranchers and agribusinesses depend on these transportation 
providers to move agricultural products from geographically diverse 
sources of production to domestic and export markets, as well as to 
provide critical farm inputs such as fertilizer, seed and agricultural 
chemicals to producers. Freight railroads account for about 24 percent 
of agricultural commodity shipment volumes.
    The STB serves a vital role, given its charge to provide fair, 
objective and fact-based regulatory oversight of a freight rail 
industry that is exempt from U.S. antitrust law and now consists of 
only seven major Class I railroads--with two dominant in the West and 
two in the East. The STB is charged with taking a balanced approach--as 
it is required to do under existing law--in weighing the need for 
effective competition in the rail marketplace, with appropriate 
regulation where effective competition does not exist, while allowing 
railroads to earn sufficient revenues to maintain their infrastructure 
and a national rail system.
    Unfortunately, the STB currently is hamstrung in its ability to act 
on several important proceedings given the lack of a full complement of 
commissioners. That is why we particularly appreciate the Committee 
scheduling a hearing on April 11 to consider these two nominees, and 
urge their speedy confirmation by the full Senate.
    Mr. Fuchs, whose nomination we strongly recommended earlier to 
President Trump, is superbly qualified to serve as a member of the STB, 
particularly given his background as senior professional staff member 
for surface transportation and merchant marine for the Senate Commerce, 
Science and Transportation Committee. As you know, he was instrumental 
in working with the Committee in helping draft and coordinating 
enactment of the first reauthorization bill since the STB's 
establishment in 1996 as the successor to the Interstate Commerce 
Commission. He also represented the Senate on rail and hazardous 
materials issues during the successful 2015 enactment of the Fixing 
America's Surface Transportation (FAST) Act, the five-year, $305 
billion surface transportation bill. He also helped draft and 
successfully negotiate enactment of legislation to avoid a disruption 
of the Nation's freight rail network by setting a new, realistic and 
achievable deadline for major carriers to install positive train 
control safety technology.
    Mr. Fuchs has impeccable credentials for this key position. He has 
a keen intellect and a well-deserved reputation for integrity, 
thoroughness, objectivity and impartiality. He also has a passion for 
freight rail policy, and for bringing facts and well-grounded analysis 
to bear on regulatory policymaking. Those qualities served him well 
while previously serving as an analyst and Presidential Management 
Fellow for rail, maritime and housing issues at the White House Office 
of Management and Budget. While at OMB, he led government-wide reviews 
and initiatives that resulted in more than $5 billion in cost savings 
through reductions in unnecessary paperwork requirements for truck 
drivers, amending overly burdensome train regulations and advancing 
more cost-effective alternatives for crude oil and ethanol 
transportation safety.
    Mr. Fuchs also has served as an economic analyst on foreign service 
assignments at the U.S. Embassy in The Hague, and in research and 
analysis positions with the U.S. Government Accountability Office and 
the National Center for Freight and Infrastructure Research and 
Education.
    While we are less familiar with Ms. Schultz, we are impressed by 
her credentials and work as deputy general counsel at the Southeastern 
Pennsylvania Transportation Authority (SEPTA), the Nation's sixth 
largest public transit agency in terms of ridership. In her current 
role, she has focused on procurement, major capital projects and 
commuter-rail regulation, and previously served as SEPTA's director of 
legislative affairs. She, too, has an impressive background, having 
clerked for the Superior Court of Pennsylvania and the U.S. Bankruptcy 
Court for the Eastern District of Pennsylvania. She received an 
undergraduate degree in English from Penn State University, and a law 
degree from the Widener University School of Law in Chester, Pa., and a 
master of governmental administration from the University of 
Pennsylvania.
    We greatly appreciate your consideration of these two nominees to 
serve as members of the STB.
            Sincerely,

Agricultural Retailers Association
Agriculture Transportation Coalition
American Farm Bureau Federation
Corn Refiners Association
Growth Energy
Institute of Shortening and Edible Oils
Meat Import Council of America
National Association of Wheat Growers
National Cattlemen's Beef Association
National Corn Growers Association
National Cotton Council
National Council of Farmer Cooperatives
National Grain and Feed Association
National Milk Producers Federation
National Oilseed Processors Association
National Pasta Association
North American Meat Institute
North American Millers' Association
Pet Food Institute
The Fertilizer Institute
U.S. Hide, Skin and Leather Association

cc: Honorable Sen. Mitch McConnell, Senate Majority Leader

Honorable Sen. Deb Fischer, Chairman, Subcommittee on Surface 
Transportation and Merchant Marine Infrastructure, Safety and Security; 
Senate Committee on Commerce, Science, and Transportation

The Honorable Cory Booker, Ranking Member, Subcommittee on Surface 
Transportation and Merchant Marine Infrastructure, Safety and Security; 
Senate Committee on Commerce, Science, and Transportation
                                 ______
                                 
                             Freight Rail Customer Alliance
                                                       May 23, 2017

Hon. Donald J. Trump,
The White House,
Washington, DC.

Dear President Trump:

    The Freight Rail Customer Alliance (FRCA)--an umbrella organization 
including trade associations representing more than 3,500 
manufacturing, agriculture and alternative fuels companies, electric 
utilities, and their customers--strongly supports the nomination of Mr. 
Patrick Fuchs from Wisconsin to serve as a Member of the Surface 
Transportation Board (STB or Board).
    The STB Reauthorization Act of 2015 (Act), P.L. 114-110, was signed 
into law in December 2015 after passing the U.S. Senate by Unanimous 
Consent and clearing the U.S. House of Representatives with strong bi-
partisan support.
    The Act marks the first time since 1998 that the Board was 
reauthorized. The reauthorizing law: (1) provides much-needed reforms 
to the Board's process to address numerous historical shortcomings 
experienced by the Board and industry stakeholders; (2) improves the 
Board's transparency; (3) helps the Board to operate more expeditiously 
and efficiently; and (4) better enables the Board to strike a more 
equitable balance among the interests of its diverse stakeholders. The 
Act also expands the size of the Board from three Members to five 
Members to allow the agency to become more functional and 
collaborative. The Act specifies that no more than three Members may be 
of the same political party. As the Board currently has two Democratic 
Members and only one Republican, your Administration has the 
opportunity to fill both vacant seats with Republicans.
    Selecting the right Republican nominees to serve in your 
Administration, including these two Board Members, is an important 
decision. Our country's ever-growing reliance on freight rail commands 
the Board to provide necessary and effective oversight, especially 
considering only four Class I railroads control 90 percent of our 
Nation's freight rail traffic. Freight rail is a vital component of our 
Nation's economy. Farmers rely on rail both for fertilizer to grow 
their crops and to deliver those crops to market, and coal-burning 
utilities and propane suppliers rely on rail to receive the fuel they 
need to serve their customers. Freight rail also enhances the growth of 
our economy and our global competitiveness.
    Mr. Fuchs is uniquely qualified to be nominated to serve as a 
Member of the Board. He was intimately involved with the crafting and 
passage of the Act in his role as a key committee staff member to 
Senator John Thune (R-SD), Chairman of the Senate Commerce, Science and 
Transportation Committee. He helped to achieve the consensus support 
among diverse stakeholders, and he has the knowledge, background, and 
experience to see that the law is successfully implemented.
    Along with implementing the Act, there are several major pending 
proceedings at the Board--some going back decades--that involve the 
most substantive issues of great importance to the Board, shippers, 
railroads, and the general public. These matters require resolution to 
reflect today's market conditions and freight rail demands.
    Mr. Fuchs's noteworthy service on Capitol Hill is further 
complimented by his prior experience as an analyst with the White House 
Office of Management and Budget (OMB). There, Mr. Fuchs was recognized 
with the Special Achievement Award in 2014 for ``tireless efforts and 
outstanding work in improving regulatory outcomes as well as key and 
timely contributions in areas outside of his normal areas of 
responsibility'' and in 2013 for ``imagination and effectiveness in 
improving regulatory outcomes and processes.'' His skills and 
achievements demonstrated at the OMB promise to serve your 
Administration and the Board well in helping to ensure government 
oversight is equitable and effective for all affected stakeholders.
    The matters before the Board are technical, complex, and 
challenging. Mr. Fuchs's notable research assistantships and 
internships at the Federal and local government levels--the 
Governmental Accountability Office, National Center for Freight and 
Infrastructure Research and Education, and the City of Middleton WI--
provided him with valuable insights and perspectives that will be 
helpful in this regard if serving in your Administration as a Board 
Member.
    Again, FRCA strongly views Mr. Fuchs as the appropriate Republican 
nominee for STB Member to promote the national interest in preserving 
an efficient and fair freight rail system. Our experience working with 
Mr. Fuchs has been above par, and we believe that he will excel at 
being impartial and fair with the ultimate goal of enhancing our 
Nation's transportation system.
    Thank you for your consideration.
            Sincerely,
                                                Ann Warner,
                                                Executive Director.
About FRCA
    An umbrella membership organization, the Freight Rail Customer 
Alliance (FRCA) includes large trade associations representing more 
than 3,500 electric utility, agriculture, and alternative fuel 
companies and their consumers. Through a growing coalition of 
industries and associations, the mission of FRCA is to obtain changes 
in Federal law and policy that will provide all freight shippers with 
reliable rail service at competitive prices. www.railvoices.org
                                 ______
                                 
                                   Railway Supply Institute
                                     Washington, DC, March 26, 2018

Via e-mail

Senator John Thune,
Chairman,
Senate Commerce, Science, and Transportation Committee.

Senator Bill Nelson,
Ranking Member,
Senate Commerce, Science, and Transportation Committee.

Re: Surface Transportation Board Nominees and in support of Mr. Patrick 
            Fuchs

Dear Mr. Chairman and Mr. Ranking Member,

    On behalf of our members at the Railway Supply Institute (RSI), I 
write to strongly support the President's nomination of Senate Commerce 
Committee senior professional staff member Patrick Fuchs to the Surface 
Transportation Board (STB). The STB serves a vital role for the entire 
$28 billion a year rail supply industry and the agency has historically 
provided a balanced regulatory environment. We believe Mr. Fuchs will 
continue to uphold these standards at the highest level.
    Mr. Fuchs has unmatched expertise in rail transportation matters in 
both the regulatory and legislative spheres. His work in the Office of 
Management and Budget's Office of Information and Regulatory Affairs 
and as the rail subject policy lead for Senator Thune provided him with 
the detailed knowledge of the rail and shipping industry that will 
serve him very well in this new role. In addition to his subject matter 
expertise, we have found that Mr. Fuchs possess outstanding integrity 
and impartiality that will make him an excellent board member.
    Finally, we also support the President's nomination to make Acting 
Chairman Ann Begeman permanent Chairman of the STB.
    Thank you for your consideration of our views. We look forward to 
working with you in pursuit of policies that support the rail supply 
community and our great nation. Should you need further information, 
please contact Nicole Brewin, Vice President of Government Affairs at, 
brewin@rsiweb.org or at, (202) 347-4664.
            Sincerely,
                                       E. Michael O'Malley,
                                                         President,

CC: Members of the Senate Commerce, Science and Transportation 
            Committee
                                 ______
                                 
                                        International Paper
                                     Washington, DC, April 10, 2018

Chairman John Thune,
Senate Commerce, Science, and Transportation Committee,
Washington, DC.

Dear Chairman Thune,

    International Paper is proud to support U.S. Surface Transportation 
Board nominees Patrick Fuchs and Michelle Shultz that will receive 
consideration by the Senate's Commerce, Science and Transportation 
Committee on April 11, 2018. International Paper spends $2 billion 
annually on U.S. freight transportation and we are the largest shipper 
of railroad boxcars in the Nation. As you would expect, ensuring the 
safe, reliable and efficient movement of our products to customers in 
the U.S. and around the world is a top priority.
    A vibrant freight railroad network that supports a robust U.S. 
manufacturing industry is a critical tool to grow the economy. 
Railroads are a strategic supplier to manufacturers like International 
Paper and we are committed to working with them. However, the railroad 
market has changed significantly since the 1980 Staggers Act and 
maintaining a fully staffed Surface Transportation Board is critical to 
ensuring that businesses have access to a fair arbiter when challenges 
arise.
    We have long advocated for STB nominees that understand the 
significant changes to the transportation marketplace in the past few 
decades so they can make fair decisions based on current market 
realities. International Paper strongly supports the nominations of Mr. 
Fuchs and Ms. Shultz because we believe they will take a balanced view 
of the rail marketplace in their critical decision-making work at the 
agency.
    We urge the Senate Commerce Committee and the full Senate to act 
quickly and advance these Surface Transportation Board nominees so the 
agency can get back to its important work, which has slowed while it 
awaits more Board members. Please contact me or Julie Alsup at 
julie.alsup@ipaper.com with any questions.
            Sincerely,
                                            Chris Keuleman,
                       Vice President, Global Government Relations.
                                 ______
                                 
                                  Kentucky Coal Association
                                      Lexington, KY, April 11, 2018

Hon. John Thune,
Chairman,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.

Hon. Bill Nelson,
Ranking Member,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.

RE: Confirmation of Surface Transportation Board Nominations

Dear Chairman Thune and Ranking Member Nelson:

    The Kentucky Coal Association strongly supports President Trump's 
nominations of Patrick Fuchs and Michelle Schultz to serve as members 
of the Surface Transportation Board (STB), as well as the selection of 
Ann Begeman to serve as STB Chairman. We urge the Senate Committee on 
Commerce, Science, and Transportation to confirm the nominees as 
quickly as possible.
    KCA represents companies that mine over 80 percent of the coal 
produced in Kentucky and also represents more than 120 additional 
companies that support Kentucky's coal mining industry. Coal is vital 
to the economy of Kentucky and the Nation and our industry relies 
heavily on railroads to deliver reliable and affordable service in 
order to remain competitive in a global market.
    The coal industry in Kentucky was devastated under policies set 
forth by the previous administration where coal production fell from 
121 million tons of coal in 2008 to 42 million tons in 2017 . Other 
compounding factors such as increasing rail costs and service 
interruptions, especially in Eastern Kentucky, highlight the need of a 
fully staffed STB committed to enacting reforms that will increase 
access to competitive rail services. We believe this will also help 
streamline overly-bureaucratic procedures and improve the overall 
effectiveness of the Board.
    The Kentucky Coal Association greatly appreciates your efforts in 
the confirmation of Mr. Fuchs and Ms. Shultz and the designation of Ms. 
Begeman as the Chairman.
            Sincerely,
                                               Tyler White,
                                                         President,
                                             Kentucky Coal Association.

    The Chairman. So we want to try and process your 
nominations as quickly as possible, and so to the degree that 
you can get responses to written questions submitted so we can 
get them incorporated in the record as quickly as possible, 
that would be helpful. We would like to, during this work 
period, move forward and try and get these reported to the 
floor so we can get some of these important positions which 
have been vacant for way too long filled.
    So thank you again for being here, and to your families. 
And with that, we will adjourn this hearing.
    [Whereupon, at 11:35 a.m., the hearing was adjourned.]

                            A P P E N D I X

     Response to Written Questions Submitted by Hon. John Thune to 
                      Rebecca Joy Kelly Slaughter
    Question 1. Do you believe the current FTC-DOJ Merger Guidelines 
are sufficiently stringent to protect against anticompetitive mergers? 
If not, what specifically would you change?
    Answer. There has been bipartisan concern raised in recent years 
about increasing concentration in a variety of markets. As you note, 
the Better Deal agenda represents the Congressional Democrats' proposal 
for legislative changes to antitrust law. If confirmed to the FTC, my 
role will be to enforce the laws as they are written today based on 
fact-specific inquiries in particular cases. The nominee to be the 
Chair of the FTC, Mr. Simons, has proposed merger retrospectives that 
will analyze whether the Commission's past actions in merger review 
have had their intended effects on the promotion of competition. I 
strongly support Mr. Simons's approach as a good first step in 
analyzing whether there are any changes that need to be made to how the 
FTC, in partnership with DOJ, approaches merger analysis.

    Question 2. In the ``A Better Deal'' platform, Congressional 
Democrats mention specific industries for careful scrutiny and 
enforcement: airlines, telecom, beer, agriculture, and eyeglass 
industries. The resume you submitted to the Committee indicates that 
you contributed to the antitrust elements of the platform. Why did 
Congressional Democrats decide not to mention the tech sector as an 
industry in need of careful scrutiny and enforcement in its antitrust 
agenda when discussing industry-specific impacts?
    Answer. In my capacity as a Senate staff member, I provided 
substantive and technical advice on the Better Deal platform, which 
represents the Congressional Democrats' proposal for legislative 
changes to antitrust law. If confirmed, my role as an FTC Commissioner 
will be to enforce the laws as they are written today based on fact-
specific inquiries in particular cases. Our antitrust laws are not 
industry specific; they do not exempt or excuse technology companies 
from enforcement. I believe the law must be applied fairly and without 
fear or favor to all industries within the FTC's jurisdiction. As I 
noted in my testimony before the Committee, there are several areas 
within the broad universe of technology where markets are particularly 
concentrated, and sectors with high levels of concentration merit 
scrutiny because they are where anticompetitive conduct and effects may 
be more likely to occur. If confirmed, I will work with my fellow 
Commissioners and the expert staff at the agency to closely monitor 
heavily concentrated markets within our jurisdiction, including in the 
technology industry, and to investigate and enforce the law.
                                 ______
                                 
     Response to Written Questions Submitted by Hon. Roy Blunt to 
                      Rebecca Joy Kelly Slaughter
    Question 1. Over the past few decades, access to increasingly large 
amounts of information has enabled growth in industry in just about 
every sector. Data has become a commodity, but I do not believe that 
American citizens understand the volume of data that is harvested from 
the digital ecosphere, or how valuable of a commodity their data has 
become. For this reason, some of the current industry data collection 
efforts concern me, including those efforts related to cross-device 
tracking.
    In January 2017, the FTC issued a staff report which outlined 
benefits and concerns specific to cross-device tracking. If confirmed, 
will you direct the FTC to continue committing resources to analyze 
industry data collection methods?
    Answer. Yes. Control over data, and related control over online 
advertising markets, may be an important factor in considering 
competition and consumer protection issues, because citizens (and their 
data) are often the product rather than the consumers. If confirmed, I 
will work with my fellow Commissioners and the expert staff at the 
Commission to ensure that our competition as well as our consumer 
protection efforts keep pace with technological innovations, including 
data issues, in rapidly changing markets.

    Question 2. The Network Advertising Initiative (NAI) and Digital 
Advertising Alliance (DAA) are self-regulatory bodies that establish 
privacy practices across the digital advertising industry. In the past, 
the FTC has worked with these bodies to help provide transparency and 
privacy for consumers.
    If confirmed, will you continue to work with the DAA and NAI to 
ensure that intra-industry guidance meets consumers' best interests?
    Answer. Yes. I believe that constructive engagement and partnership 
with industry self-regulatory bodies can be an effective complement to 
the FTC's enforcement authority, helping to ensure best practices are 
adopted across industries.
                                 ______
                                 
    Response to Written Questions Submitted by Hon. Jerry Moran to 
                      Rebecca Joy Kelly Slaughter
    Question 1. In 2016, Congress enacted the Better Online Ticket 
Sales (BOTS) Act to empower the FTC and state attorneys general to go 
after people who use computer programs--called ``bots''--to seize up 
large portions of ticket inventories for live events, and re-sell them 
on the secondary market. Your work in Senator Schumer's office was 
critical to the development and progress of this law, and I appreciated 
your leadership on this issue. As you know, this committee voted 
unanimously to advance that legislation, to help our constituents 
access quality tickets at face value. However, laws are not effective 
unless they are enforced. We have provided the FTC with a tool, which 
we believe should be used rigorously to protect consumers. Should you 
be confirmed, will you commit to using this enforcement tool that 
Congress provided?
    Answer. Yes, absolutely. Working on this issue with your office as 
a Senate staffer was both a privilege and a pleasure, and as a result 
of that work I am particularly invested in seeing the law enforced as 
intended. If confirmed, I look forward to continuing to work with you 
and your staff to ensure consumers are adequately protected from 
manipulation by bots.

    Question 2. I am also a member of the Senate Appropriations 
Subcommittee that is responsible for the discretionary funding of the 
FTC. As you are likely aware, the White House's FY 2019 budget included 
$309.7 million for the FTC, which is about $3 million more than the 
enacted level for FY 2018. As Congress attempts to appropriate the 
necessary resources to the agency for the following Fiscal Year, do you 
have any recommendations for this committee and appropriators related 
to resources necessary to complete the agency's mission, including 
staff support?
    Answer. At this point, I do not have any particular 
recommendations. However, if I am confirmed, I am committed to working 
with my fellow Commissioners and the expert staff at the agency to 
steward our allocated resources responsibly and to communicate where 
and how those resources could be enhanced or better tailored.

    Question 3. This committee held a joint hearing with the Senate 
Judiciary Committee to discuss Facebook's data collection practices and 
how the company did or did not comply with a consent order that it 
reached with the FTC in 2011. While I understand that you will not be 
able to comment on an ongoing investigation, how do FTC enforcement 
actions that challenge the data security practices of companies impact 
the commission's ability to protect consumers?
    Answer. Without commenting on any particular case, I will note that 
enforcement actions are a key tool for the Commission in carrying out 
its obligations to protect consumers.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Dan Sullivan to 
                      Rebecca Joy Kelly Slaughter
    Question. Anticompetitive consolidation has been a hot topic 
recently, especially in regards to the enormous market capitalization 
of tech companies. Recent calculations value the four largest tech 
companies' capitalization at $2.8 trillion dollars, which is a 
staggering 24 percent of the S&P 500 Top 50, close to the value of 
every stock traded on the Nasdaq in 2001, and to give a different 
perspective, approximately the same amount as France's current GDP. 
Press reports have also noted allegations of increased anti-competitive 
behavior by some of these companies. Is there a point at which these 
companies are simply too big from an antitrust standpoint?
    Answer. Our law does not treat size alone as a basis for antitrust 
enforcement. However, size is often correlated with market share. 
Companies that acquire or maintain their size and market share through 
anticompetitive conduct are and must be subject to the scrutiny of our 
antitrust laws and enforcement agencies. If confirmed, I will work 
closely with my fellow Commissioners and the expert staff at the agency 
to ensure that we are carefully monitoring allegations of 
anticompetitive conduct and robustly enforcing our laws.
                                 ______
                                 
   Response to Written Questions Submitted by Hon. Amy Klobuchar to 
                      Rebecca Joy Kelly Slaughter
    Question 1. Recent data breaches at Facebook, Equifax, Uber and 
Yahoo have exposed the personal information of millions of Americans. 
While some companies have taken steps to improve their privacy 
practices, it is clear more must be done. These incidents raise 
important questions about protections for consumers and the long-term 
consequences of having personal information exposed online.
    Ms. Slaughter, what tools does the Federal Trade Commission have to 
address breaches and could additional authority help protect consumers' 
information online?
    Answer. Repeated, high-profile incidents of large scale data 
breaches are very concerning to me, both as a consumer and as a 
prospective Commissioner. When the same problem recurs again and again, 
it is clear that more must be done to deter future breaches. The 
agency's toolkit includes investigations and enforcement actions, 
engagement with consumers and industry stakeholders, and partnership 
with sister agencies in the Federal and state governments. If 
confirmed, I intend to work with my fellow Commissioners as well as the 
expert staff at the FTC to ensure that the Commission is doing all it 
can to protect consumers and to examine whether a request to Congress 
for additional tools is appropriate.

    Question 2. Some pharmaceutical companies prevent generic drug 
companies from obtaining branded samples needed for testing generic 
equivalents. Some branded companies refuse to negotiate, or delay 
negotiations, with a generic company to reach Food and Drug 
Administration-mandated safety protocols. These tactics can delay the 
introduction of affordable generic drugs for years. That is why I, 
along with Senators Grassley, Leahy, and Lee, introduced the Creating 
and Restoring Equal Access to Equivalent Samples (CREATES) Act to 
provide a targeted solution to this problem.
    Ms. Slaughter, do you believe that branded pharmaceutical companies 
withholding testing samples from generic drug companies can lead to 
consumer harm?
    Answer. Access to affordable medications is critical to many 
Americans. I share your concern about practices that prevent or 
restrict affordable generic alternatives from entering the market, 
thereby harming consumers. I am familiar with your legislation, and, if 
confirmed, I look forward to working with my fellow Commissioners and 
the expert staff at the agency to identify areas where the Commission 
can appropriately act while Congress considers legislative changes.
                                 ______
                                 
 Response to Written Questions Submitted by Hon. Richard Blumenthal to 
                      Rebecca Joy Kelly Slaughter
    Question 1. What experience do you have working with State 
Attorneys General? What are your views regarding the Commission working 
with state law enforcement?
    Answer. In my time at the Senate, I have found State Attorneys 
General to be an invaluable resource to both policy makers and 
enforcement agencies; they not only provide insight into troubling 
anticonsumer and anticompetitive practices they are seeing in their 
states, but they also serve as essential partners in law enforcement 
actions to address these practices. I firmly believe that the 
Commission needs to continue to work closely with State Attorneys 
General.

    Question 2. In the Dodd-Frank Act of 2010, Congress gave the FTC 
extensive authority over the sale, servicing, and leasing of 
automobiles--charging it to protect consumers from abusive auto lending 
practices and granting it exclusive authority to draft rules governing 
unfair or deceptive acts or practices by automobile dealers.
    Would you support the FTC using its rulemaking authority to rein in 
unfair or deceptive acts or practices by automobile dealers?
    Answer. Yes, I believe the FTC should make full use of its 
authorities to rein in unfair or deceptive acts or practices by 
automobile dealers. If confirmed, I would support a careful review of 
current complaints and industry practices to determine what specific 
rules might be appropriate to protect consumers.

    Question 3. More than 17 million Americans are the victims of 
identity theft every year. This problem seems to increase year over 
year as identity theft scams seem to get more sophisticated.
    Three years ago, the FTC established IdentityTheft.gov. This site 
is supposed to be a one-stop shop for victims of identity theft where 
they can easily freeze credit across the big three credit reporting 
agencies, and recover their stolen identities.
    This website's functionality is limited, however, because of what 
appears to be a lack of engagement by the credit bureaus to make the 
site what it should be.
    How would you engage with credit bureaus to ensure 
IdentityTheft.gov has a comprehensive suite of easy to use tools 
allowing victims of identity theft to recover as quickly as possible, 
with as little stress as possible? What are your expectations with 
respect to the role the credit reporting agencies should play in making 
IdentityTheft.gov an effective one-stop shop for identity theft 
victims?
    Answer. The idea of having a one-stop shop for victims of identity 
theft is an important one; the inability to figure out how to fix and 
address identity theft only adds insult to the injury identity theft 
victims have already suffered. However, a one-stop shop is only useful 
if it provides meaningful, effective, and comprehensive tools and 
information. I believe CRAs can and should engage and partner with the 
FTC to ensure the functionality of IdentityTheft.gov, and, if 
confirmed, I look forward to working with my fellow Commissioners and 
the expert staff at the agency to ensure they do so.

    Question 4. Would you support FTC's jurisdiction be expanded to 
include non-profits and charities so that it can act more swiftly to 
prevent and stop illegal conduct in the nonprofit sector?
    Answer. Abusive practices by charities and non-profits--which are 
granted special tax treatment because they are supposed to be dedicated 
to the public good--are particularly noxious. While of course the 
statutory reach of the FTC is a question for Congress to determine, I 
am generally supportive of ensuring that the Commission has the ability 
to go after bad actors masquerading as public interest organizations. 
If confirmed, I would be happy to work with my fellow Commissioners and 
with Congress to explore this issue further.

    Question 5. Other Federal agencies charged with consumer protection 
make an array of data available on consumer complaints received. The 
FTC releases relatively very little data on companies receiving 
significant levels of complaints. Do you think the FTC should be more 
transparent about the complaints it receives?
    Answer. As a general matter, I think more transparency is a good 
thing, provided the confidentiality of non-public investigations is not 
jeopardized, which could in turn hinder the Commission's important 
enforcement efforts.

    Question 6. The Consumer Financial Protection Bureau was created in 
response to the 2008 financial crisis and Great Recession after it 
became clear that our financial sector needed far more oversight to 
prevent a disaster of that magnitude from happening ever again. The 
current Administration seems intent on gutting this agency that serves 
a critical role in protecting Americans from irresponsible financial 
institutions. Of course, the CFPB and the FTC complement each other in 
their protection of consumers. How do you envision the FTC's role in 
holding financial institutions accountable?
    Answer. The FTC can and should partner with its sister agencies 
across the Federal government to ensure robust, coordinated, 
complementary enforcement of our Federal law. The FTC shares 
jurisdiction with the CFPB, but maintains an obligation to enforce 
matters within its purview to the fullest extent of the law.

    Question 7. Other consumer protection agencies appear to be 
reducing the vigor of their enforcement work. In what way should this 
impact the priorities of the FTC?
    Answer. I believe the FTC should prioritize work that will maximize 
its limited resources to return the most value for the American people. 
If there are areas of the Commission's jurisdiction that are being 
under-enforced by other agencies, the FTC should step in to fill the 
gaps where it can do so effectively.

    Question 8. In the past, the FTC has cracked down on for-profit 
colleges and vocational programs with strong enforcement actions. 
However, we're seeing these institutions continue to defraud Americans. 
A study conducted by The Century Foundation found that 98 percent of 
complaints asking for student loan forgiveness alleging fraud by 
colleges were from students attending for-profit institutions. If 
confirmed, how will you protect Americans from being scammed by such 
institutions?
    Answer. Institutions that take advantage of vulnerable students 
deserve heightened scrutiny. If confirmed, I would like to look into 
this issue further and ensure that the Commission's resources are being 
effectively used not only to punish wrongdoers but to deter others from 
taking their place.

    Question 9. More than two of every three American households own a 
pet. The FTC has estimated they will spend $10.2 billion on medications 
this year, of which more than $5 billion require a prescription. It has 
been estimated that pet owners who can get a copy of their pet's 
prescription and shop around, could save 20 to 30 percent on branded 
medications and 50 percent when they purchase generics. This suggests 
that prescription portability can save pet owners billions of dollars 
every year--in addition to the savings in time and transportation if 
they can get those prescriptions filled while they are at the grocery 
store or pharmacy or delivered from an online pharmacy. Unlike with 
human medications, with our pets, the prescriber also dispenses the 
medication prescribed--setting up a conflict of interest whereby the 
prescriber is both a health care provider and a retailer.
    In testimony in 2016, the FTC stated that ``we believe that the 
greater prescription portability likely would enhance competition for 
the sale of pet medications and that consumers would benefit from this 
competition in the form of lower prices.'' Do you agree with this 
conclusion?
    Answer. As the owner of two aging dogs, I personally understand how 
important and expensive pet medications can be. I am very sympathetic 
to the notion that prescription portability could improve competition 
in the marketplace. If confirmed, I would like to look into the issue 
further and work with your office to identify specific improvements to 
competition in the pet medicine market that could be made.

    Question 10. The prescribing and dispensing of human medications 
has long been separated. With eyeglasses and contact lenses, where 
prescribers also sell the products they prescribe, Federal law grants 
consumers the right to their prescriptions. Why should it be any 
different for pet owners with regards to medications for their pets?
    Answer. As a general matter, I am sympathetic to the idea that 
prescription portability--for people and for pets--can provide 
competitive benefits. If confirmed, I would like to study this issue 
further to understand what, if any, justification could exist for 
treating pet medications differently.

    Question 11. Manufacturers of pet medications can, and do offer 
inducements to veterinary clinics to prescribe and sell their 
medications.
    Do you think the public, and pet owners who spend billions of 
dollars annually on prescription pet medications have a right to know 
whether their vet clinic is receiving payments from the manufacturers 
of drugs that clinic prescribes?
    Answer. Generally speaking, I am supportive of providing more 
information to patients and consumers to allow them to make meaningful 
choices about how to spend their healthcare dollars; that is true for 
both people and pets. Although I do not have enough familiarity at this 
time with the pet medication marketplace and supply chain to comment on 
this particular issue, if confirmed I will work with my fellow 
Commissioners and the expert staff at the FTC to study it further.

    Question 12. In 2003, Congress passed the Fairness to Contact Lens 
Consumers Act (``FCLCA'') to grant the 40 million Americans who wear 
contact lens wearers the right to copies of their prescriptions. The 
law also established a process for consumers to have their 
prescriptions verified when they purchase their lenses from a retailer 
other than the prescriber.
    On September 3, 2015, the FTC launched its ten-year review of the 
Contact Lens Rule. The comment period closed on October 26, 2015, after 
the Commission received over 660 comments from a wide variety of 
stakeholders including optometrists, ophthalmologists, consumers, 
contact lens manufacturers and third-party contact lens sellers such as 
big box stores and online retailers.
    On December 7, 2016, the Commission issued a Notice of Proposed 
Rulemaking (``NPRM'') concluding that ``compliance with the automatic 
prescription release provision could be substantially improved.'' This 
is consistent with the comments of 20 State Attorneys General who 
reported to the Commission that: ``[t]he States are aware, from their 
enforcement efforts and collective experience, that not all patients 
receive their prescription in writing as a matter of course.'' The NPRM 
also proposed the common sense solutions of having consumers sign an 
acknowledgement that they have received their prescriptions and 
clarifying the right of consumers and their chosen retailers to receive 
additional copies of those prescriptions.
    If confirmed, will you prioritize finalizing this proposed rule, to 
help ensure all consumers will receive copies of their prescriptions, 
as Congress intended? Considering FTC's limited resources, and the 
significant resources that would be required to take action against 
individual prescribers who are not in compliance with this requirement 
under the current rule, do you agree that the FTC's proposed rule is an 
efficient means of promoting compliance?
    Answer. I believe studies have shown that over half of Americans 
have problems with their vision that require corrective treatment, 
whether eyeglasses or contact lenses (or both)--including me. And 
vision correction can be extremely expensive. My understanding is that 
the Commission is currently reviewing comments on the proposed changes 
to the Contact Lens Rule, and last month conducted a workshop to 
further discuss and address questions and concerns. If confirmed, I 
will work with my fellow Commissioners and the expert staff at the 
agency to ensure that any updates coming out of the rule review are 
clear, effective, fair, and published in a timely manner.

    Question 13. The FTC has not pursued any enforcement activity under 
the Military Lending Act, despite having the authority to enforce this 
important protection. If confirmed, would you support vigorous 
enforcement of the MLA?
    Answer. Yes.
                                 ______
                                 
    Response to Written Questions Submitted by Hon. Brian Schatz to 
                      Rebecca Joy Kelly Slaughter
    Question 1. As an FTC commissioner, would you make it a priority to 
assess whether consumer reporting agencies (CRAs) are complying with 
the Fair Credit Reporting Act (FCRA) to ensure that credit reports are 
accurate, that consumers have control over their data, and are able to 
find and fix errors that may appear on their credit report?
    Answer. Yes. CRAs have enormous power over consumers, while 
consumers have minimal leverage over CRAs. Exacting Federal regulatory 
oversight is therefore necessary to ensure consumers have access to 
their reports and the ability to fix errors.

    Question 2. Do you think consumers have a meaningful choice when it 
comes to choosing which consumer reporting agencies collect and report 
data about them?
    Answer. As the system is currently structured, I don't believe 
consumers have any choice at all about which CRAs collect and report 
data about them.

    Question 3. Does the lack of consumer choice increase the risks for 
consumers because they are unable to control which companies collect 
and report data about them?
    Answer. Yes. I believe the asymmetry in power between the CRAs and 
consumers amplifies the risks to consumers that their data may be 
inaccurately or inappropriately collected and shared.

    Question 4. In February 2013, the Federal Trade Commission 
published a report that found that five percent of consumers had errors 
on their credit reports that could result in less favorable terms for 
loans.
    Do you think this study raises concerns that CRAs are not in 
compliance with the FCRA's requirement to ``follow reasonable 
procedures to assure maximum possible accuracy'' of credit reports? (15 
USC 1681e(b))
    Answer. Yes, I believe the study raises serious concerns that 
should continue to be monitored and addressed by the Commission.

    Question 4a. Do you think the FTC should conduct a follow up study 
to see if error rates have improved?
    Answer. I do believe this is an area that should be the focus of 
continued attention by the Commission. If confirmed, I would like to 
consult with the expert staff at the agency to understand what follow-
up has been done so far and whether a follow-up study would be the most 
effective next step to reduce error rates, or whether resources would 
be better dedicated to enforcement.

    Question 4b. If error rates continue to impact millions of 
Americans, what actions should the FTC take to enforce compliance with 
the FCRA?
    Answer. If confirmed, I would like to consult with the expert staff 
at the agency to determine what would be the most effective ways to 
ensure compliance with the FCRA. The FTC has a variety of tools, 
including enforcement actions, industry-wide studies, stakeholder 
engagement, and the power to call public attention to an ongoing 
problem. I want to better understand the actions the Commission has 
undertaken thus far--both public and non-public--in order to properly 
evaluate how compliance can best be ensured going forward.

    Question 5. Do you think the FTC should reexamine whether the 
policies and practices of CRAs to handle consumer disputes are in 
compliance with the FCRA?
    Answer. I believe the Commission has an ongoing obligation to 
ensure compliance with the Federal laws within its jurisdiction, 
including the FCRA. I am very concerned about the resolution of 
consumer disputes, and, if confirmed, I would support careful 
monitoring of the industry.

    Question 6. In 2015, the New York Attorney General reached a 
groundbreaking settlement with the three national consumer reporting 
agencies--Experian, Equifax, and TransUnion. The terms of the 
settlement require the CRAs to do more to ensure maximum possible 
accuracy of credit reports and to improve the dispute resolution 
process for consumers.
    Do you think the FTC should coordinate with the NY attorney general 
to assess the implementation of the settlement and its impact on 
improving accuracy?
    Answer. Yes, I believe the FTC should always coordinate as much as 
possible with State Attorneys General.

    Question 6a. If the terms of the settlement have improved accuracy, 
do you think there is a case to be made that the settlement terms 
should be considered as best practices for compliance with the FCRA to 
ensure maximum possible accuracy?
    Answer. One of the benefits of close partnership with State 
Attorneys General is that their enforcement actions can provide 
valuable instruction for the FTC and its Federal partners. If 
confirmed, I would support the Commission closely studying the New York 
settlement and its implementation to determine what lessons could be 
extrapolated and explored at the Federal level.

    Question 7. What are your views on the inclusion of medical debt in 
credit reports? How would you, as a commissioner, determine whether it 
is appropriate for CRAs to include medical debt in credit reports?
    Answer. I have not studied the law surrounding this particular 
issue in depth, and, if confirmed, I would hope to learn more about it. 
As a general matter, however, I will note that I think there are 
compelling reasons to treat medical debt differently from other types 
of consumer debt, because medical expenses are not generally incurred 
voluntarily and consumers often do not have the ability to shop around 
for lower-cost health care when they are facing the prospect of life-
threatening and expensive treatment. In addition, there may be privacy 
concerns with the inclusion of medical debt on a credit report, as that 
could reveal sensitive health information about the subject of the 
report.

    Question 8. Consumers have the right to inspect their credit 
reports every year. Do you think they should also have the right to 
inspect their credit score?
    Answer. Because credit scores, often as much as the underlying 
reports, are used to make important decisions about a consumer's 
credit-worthiness, I believe it would be sound public policy for 
consumers to have access to their scores as well as their reports.

    Question 9. Do you think the FTC has the right expertise and 
capacity to investigate and evaluate algorithms for unfair, deceptive, 
fraudulent consumer practices in the marketplace?
    Answer. The issues you raise about the use of algorithms in 
potentially unfair, deceptive, and fraudulent consumer practices are 
important ones, and I believe it is critical that the FTC have both the 
expertise and the resources to address them. If confirmed, I will work 
with my fellow Commissioners and the expert staff at the agency to 
explore whether any changes might be necessary to the Commission's 
resourcing in this area.

    Question 10. Will you prioritize bringing in additional technical 
talent to strengthen FTC's mission in the digital domain?
    Answer. Yes. In my Committee questionnaire, I identified keeping up 
with technological innovations in rapidly changing markets as the top 
challenge facing the Commission. One important way to meet this 
challenge is with the best and brightest technical talent to ensure 
complex technological issues are being appropriately understood and 
addressed by the Commission.

    Question 11. What are your views of the FTC's ability to ensure 
adequate oversight of online privacy?
    Please discuss your views on the FTC's expertise in this area and 
the adequacy of the regulatory tools available to it.
    What specific actions would you propose the FTC undertake to 
improve online privacy?
    Answer. The FTC has authority under Section 5 of the FTC Act to 
prohibit unfair or deceptive acts or practices, and it has used this 
authority to enforce against violations of privacy in the digital 
space. If confirmed, I would strongly support robust continued 
enforcement in this area. I would also want to work with my fellow 
Commissioners, agency staff, and stakeholders to identify whether any 
additional actions can be taken or whether additional tools or 
resources are needed to further protect online privacy.

    Question 12. What is your view of the propriety of the FTC imposing 
conditions on proposed mergers as compared with suing to block a deal? 
How would you evaluate when to use one or the other?
    Answer. I believe that, generally speaking, any merger under 
consideration must be considered on its own terms with the facts 
specific to the case and the markets at issue. In some cases, 
behavioral remedies and conditions such as divestiture may be adequate 
to ameliorate any potential competitive harm. Where no agreement on 
conditions can be reached that satisfies the Commission's concerns, 
litigation to block the consummation of the merger is not only 
appropriate, but necessary. If confirmed, I would analyze the specific 
facts of the case and potential proposed conditions to determine if my 
own concerns are satisfied. In addition, I would note that Mr. Simons 
has proposed undertaking retrospective analysis of the Commission's 
past merger work; I strongly supported this undertaking when I 
testified before the Committee, and I continue to believe it can 
provide valuable instruction as to whether and when merger conditions 
have been effective in the past.
                                 ______
                                 
     Response to Written Questions Submitted by Hon. Tom Udall to 
                      Rebecca Joy Kelly Slaughter
    Question 1. What are your ideas on how to promote consumer 
protection in an increasingly online--and connected--world?
    Answer. In my Committee questionnaire, I highlighted as a key 
challenge for the Commission the need to ensure our enforcement 
strategies keep pace with emerging technologies in rapidly changing 
markets. That is particularly true as more and more of our lives occur 
in internet-enabled spaces. If confirmed, I will work with my fellow 
Commissioners and the expert staff at the agency to ensure that 
consumers are adequately informed of their rights, that wrongdoers are 
effectively pursued, and that the Commission is appropriately 
monitoring these important issues.

    Question 2. Do you believe that the current FTC enforcement 
principles are sufficient to protect consumers? And do you believe the 
FTC has the resources necessary to protect consumers given the 
significant amount of work on the docket for the agency?
    Answer. I believe the FTC has an obligation to engage in robust 
enforcement of the law to protect consumers and promote competition. If 
confirmed, I will work with my fellow Commissioners and with the expert 
staff at the agency to ensure that the Commission's authorities and 
resources are being used as effectively as possible, and I will commit 
to reporting back to you if I believe additional tools or resources 
would be helpful to the Commission.

    Question 3. In December, I wrote to the FTC, along with Senators 
Schumer and Blumenthal, asking for a workshop to discuss the increased 
use of ``bots'' to purchase large quantities of in-demand toys and 
items, particularly at Christmas. The FTC has confirmed that it will 
engage with key stakeholders to determine if a workshop is necessary. 
Will you commit to reviewing the record on this issue and to working 
with my office to determine next steps, including the possibility of 
legislation?
    Answer. Yes.

    Question 4. Last week, an article in TechCrunch showed how Facebook 
uses data from Onavo Protect, a subsidiary app, to gather data on its 
competitors; how Google uses its search rankings to demote alternate 
competitive sites; and Amazon's aggressive low pricing undercuts book 
publishers. Under your respective leadership, how will the FTC enforce 
the principles of unfair methods of competition against tech giants 
like Facebook, Google and Amazon to promote consumer welfare?
    Answer. Our antitrust laws do not exempt or excuse technology 
companies from enforcement; I believe the law must be applied fairly 
and without fear or favor to all industries within the FTC's 
jurisdiction. If confirmed, I will work with my fellow Commissioners 
and the expert staff at the agency to closely monitor heavily 
concentrated industries, including the technology industry, and to 
investigate and enforce against anticompetitive practices.

    Question 5. Following the FTC's approval of the Google/DoubleClick 
acquisition in 2007, then Commissioner Pamela Jones Harbor released a 
dissent detailing the need for the commission to ``evaluate the 
implication of this kind of data merger from a competition as well as a 
consumer protection perspective.'' Since 2007, data has only become 
more important in the world of machine learning and ad targeting. When 
evaluating mergers and acquisitions in the technology industry, how 
will you evaluate the impact of data on competition as well as a 
consumer protection perspective?
    Answer. Control over data, and related control over online 
advertising markets, may be an important factor in considering 
consolidation in online industries, where citizens (and their data) are 
often the product rather than the consumers. If confirmed, I will work 
with my fellow Commissioners and the expert staff at the Commission to 
ensure that our competition as well as our consumer protection efforts 
keep pace with technological innovations, including data issues, in 
rapidly changing markets.

    Question 6. Recently a group of over 20 advocacy groups filed a 
complaint to the FTC about how YouTube \1\ uses behavioral targeted 
advertising with children on their main application/website. How do you 
think about enforcing the Children's Online Privacy Protection Rule 
(COPPA) on applications like YouTube who have a large number of users 
under 13 and use behavioral targeting on those customers?
---------------------------------------------------------------------------
    \1\ Maheshwari, Sapna, 9 April 2018. New York Times. https://
www.nytimes.com/2018/04/09/business/media/youtube-kids-ftc-
complaint.htm
---------------------------------------------------------------------------
    Answer. I do not want to prejudge any particular complaint or 
investigation. However, as a general matter, I will note that the FTC 
has very important enforcement obligations under COPPA. As the parent 
of three young children, I am especially sensitive to the 
responsibility I would have, if confirmed, to ensure that COPPA is 
robustly enforced.

    Question 7. I have a long history of working with the Federal Trade 
Commission on false labeling of sports equipment. The FTC has done some 
good work--specifically it sent letters to retailers and manufacturers 
calling out certain deceptive practices. However, it is important that 
the FTC continue to monitor for future misleading labeling. Will you 
commit to me to continue to monitor the marketplace, including both 
traditional and online retailers, and use the enforcement authority of 
the FTC for any marketer or manufacturer repeatedly making false 
claims?
    Answer. Yes.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Dan Sullivan to 
                          Michelle A. Schultz
    Question. Alaska is one of about 5 states where all freight rail 
service is provided by regional and shortline railroads, also known as 
Class 2 and Class 3 railroads. Many of these small railroads are in 
rural areas and were created from lines that would have been abandoned 
by the large Class 1 railroads, although in Alaska our railroad was 
previously owned by the Federal government.
    Regional and shortline railroads face the same types of challenges 
as other small businesses, because they are small businesses. Could you 
please give me your perspective on these small railroads and how you 
see the role of the STB in helping to preserve rail service in rural 
areas by these small railroads?
    Answer. For certain areas across the country, short line and 
regional railroads are the only way shippers can access the national 
freight rail network. Shortline railroads serve a vital role to the 
U.S. freight rail network. As the economic regulator of the rail 
industry, the Surface Transportation Board has discretion to tailor its 
regulatory activities to meet the Nation's changing transportation 
needs. This discretion would include taking into account the integral 
role that shortline railroads play in the national freight network.
                                 ______
                                 
    Response to Written Questions Submitted by Hon. Dean Heller to 
                          Michelle A. Schultz
    Question 1. As you both know, the Department of Energy has an 
application before the Surface Transportation Board for a certificate 
of public convenience and necessity to build the Caliente railroad to 
Yucca Mountain. Given Congress' repeated refusal to fund the Yucca 
Mountain project, I do not believe the Surface Transportation Board 
should act on this application knowing that the project is not funded 
and that it is not going to be funded.
    Ms. Schultz, during questioning, you would only commit to a ``fair 
and impartial'' review of the Department of Energy's application, so I 
will ask you once again: Do you or do you not believe the Surface 
Transportation Board should act on this application regardless of 
whether Yucca Mountain has been funded?
    Answer. Although I do not want to prejudge a pending STB 
proceeding, I would not expect the Board would rule upon an application 
that was filed approximately ten years ago and which neither of the 
interested parties, including the Department of Energy has sought 
further action upon.

    Question 2. Ms. Schultz, if confirmed, will you commit to 
continuing the Surface Transportation Board's practice of not getting 
out in front of other agencies when it is not the lead agency?
    Answer. I believe the current policy of the STB as you described it 
is appropriate.

    Question 3. Under the Nuclear Waste Policy Act, the Federal 
government is looking at shipping 9,495 rail casks in 2,800 trains and 
2,650 trucks hauling one cask each to Yucca Mountain over 50 years. 
These shipments would use 22,000 miles of railways and 7,000 miles of 
highways and cross over 44 states. Under previous questioning from me 
at this Committee, Federal Railroad Administrator Ronald Batory and 
Pipeline and Hazardous Materials Safety Administrator Howard Elliott 
confirmed that a transportation accident with an ensuing radiological 
release was possible.
    Ms. Schultz, given the significant number of proposed shipments, 
the sheer distance to be traveled, and the 50-year duration of these 
shipments, do you agree with Mr. Batory and Mr. Elliott that there is a 
real risk of at least one transportation accident with an ensuing 
radiological release occurring?
    Answer. Based upon the information as it has been presented here, I 
would have no reason to disagree with the opinions of the safety 
experts.
                                 ______
                                 
    Response to Written Questions Submitted by Hon. Bill Nelson to 
                          Michelle A. Schultz
    Gulf Coast Rail Service. As you know, restoration of Amtrak 
passenger service along the Gulf Coast will help the region meet its 
transportation needs and boost tourism and local economies.
    Question 1. In your view, do you think restoring rail service on 
the Gulf Coast is an important project?
    Answer. The Gulf Coast project is an important issue.

    Question 2. What steps should be taken to help restore Gulf Coast 
passenger rail service?
    Answer. I am aware of the ongoing negotiations regarding the Gulf 
Coast service. If the parties are not able to reach an agreement, the 
law gives the Surface Transportation Board the ability to resolve these 
issues. If confirmed, and if this case should come before the Board, I 
would adjudicate this matter in a fair and balanced way. In the 
meantime, before any dispute arises, I would also like to speak with 
stakeholders as well as members of your staff to learn more about the 
issues surrounding the Gulf Coast Service.

    Passenger Service. On-time performance continues to be a challenge 
for many passenger rail lines. Without reliable service, many 
passengers may choose to not take the train and instead drive or take 
the bus, which adds to congestion and wear and tear on our highways.
    Question 3. In your view, what can be done to improve on-time rail 
service so that people can get to where they need to be when they need 
to be there?
    Answer. As a current employee of a multi-modal public 
transportation authority, I recognize both the value of on time 
performance and the challenges that it presents. As you are aware, when 
Congress enacted the Passenger Rail Investment and Improvement Act of 
2008 (``PRIIA''), it delegated to the Federal Railroad Administration 
and Amtrak the joint regulatory authority to promulgate metrics and 
standards for measuring on-time performance of passenger trains.
    Because the FRA/Amtrak regulations were blocked in court, in 2016, 
the Surface Transportation Board promulgated its own regulations 
defining what constitutes ``on time performance'' when Amtrak operates 
over lines owned and controlled by freight railroads. These regulations 
were challenged in 2017 before the U.S. Court of Appeals for the Eighth 
Circuit, which held that ``Congress likely did not give the FRA/Amtrak 
and the Board separate authority to develop two potentially conflicting 
on-time performance rules.'' See Union Pacific Railroad Company v. 
Surface Transportation Board, 863 F.3d 816, 826 (8th Cir. 2017). The 
Court also held that ``on-time performance'' means on-time performance 
as developed by the FRA and Amtrak under Sec. 207(a) of PRIIA.'' Id. 
Accordingly, the outcome of the litigation over the FRA/Amtrak rules, 
which is still pending in the United States Court of Appeals for the 
District of Columbia, will be an important factor in determining how 
the Board will carry out its statutory responsibilities. If confirmed, 
I will follow the law and apply the appropriate on time performance 
standards in a fair and impartial manner.

    Freight Railroad Investments. Service issues faced by railroads 
highlight the need for ongoing investment by railroads in 
infrastructure and resources--such as locomotives and employees. The 
ever-increasing demand to move freight will only further the need for 
more investment.
    Question 4. If confirmed, what will you do to make sure that the 
STB's policies do everything possible to promote private infrastructure 
investment?
    Answer. I will support the STB's statutory mandate to promote a 
safe and efficient rail transportation system by allowing rail carriers 
to earn adequate revenue. This means that carriers should be able to 
earn enough revenue to maintain the rail system, reinvest in 
infrastructure and attract capital.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Amy Klobuchar to 
                          Michelle A. Schultz
    Question. In many rural parts of the country, shippers are served 
by only one railroad, so called ``captive shippers.'' These shippers 
can face increased costs in getting their products to market. Whether 
they are shipping grain, coal or paper, the increased costs get passed 
on to the consumer.
    If confirmed what steps would you take to ensure captive shippers 
have access to competitive shipping rates?
    Answer. There are a few issues pending before the STB which pertain 
to shipping rates. These issues include reciprocal switching; the 
exploration of alternatives or modifications to the stand-alone-cost 
test; and the railroad revenue adequacy test. I am aware that these are 
important issues for captive shippers who are looking for other ways to 
address their concerns about rail rates. I am also aware that it is 
important to assess the consequences on the industry that any of these 
changes may impact. If confirmed, I look forward to participating in ex 
parte meetings with STB staff, Board Members and stakeholders to better 
understand the metrics that are currently in place as well as the 
impact that any changes to the existing standards could cause.
                                 ______
                                 
 Response to Written Question Submitted by Hon. Richard Blumenthal to 
                          Michelle A. Schultz
    Question. The goal of the STB in many respects is consumer 
protection. For shippers of commodities, coal, chemicals, agricultural 
products, automobiles and some other goods, the shippers--if you will--
are the consumers of rail. And if those shippers encounter unfair costs 
in shipping goods to market, then those high costs can ultimately be 
passed on down to consumers at the retail level.
    Protecting consumers is critical to me and a key focus of my work 
in the Senate. How would you articulate the STB's work as a consumer 
protection organization?
    Answer. The U.S. freight rail network enables connectivity between 
both buyers and sellers. Without an efficient freight network many 
industries would incur higher costs and those costs would most likely 
be reflected in the prices of consumer goods. The STB is charged by 
Congress with resolving railroad rate and service disputes and serves 
as the economic regulator of the freight rail industry. If confirmed, I 
would review all matters in fair and impartial manner and would 
recognize that decisions rendered by the STB have significant impacts 
on all the stakeholders, including consumers.
                                 ______
                                 
   Response to Written Questions Submitted by Hon. Tammy Baldwin to 
                          Michelle A. Schultz
    Question 1. The Surface Transportation Board (STB) is examining 
existing class exemptions for certain commodities that would allow 
exempt commodities like steel and cement to be on the same playing 
field as nonexempt commodities. Currently, there is limited recourse 
for exempt commodities at the STB.
    The forest products industry is pursuing a revocation of their 
exemption. The exemptions for forest and paper products were approved 
in a series of decisions in the late 1980s and early 1990s, before 
major rail mergers that drastically consolidated the railroad market 
and has allowed the railroads to exert market power over shippers.
    The exemptions for forest and paper products are antiquated and 
were justified by a substantially different rail transportation 
marketplace and regulatory structure that no longer exist. Today, the 
exemptions hinder business and competition. Companies that ship paper 
and forest products are disadvantaged by commodity exemptions because 
they lack access to STB procedures that are available to non-exempt 
shippers to address rail rate and service concerns.
    If confirmed, will you give fair consideration to the case the 
forest products industry has made for the revocation of their exemption 
and move to finalize the rulemaking?
    Answer. Yes. If confirmed, I will give fair consideration to case 
the forest products industry has made for the revocation of their 
exemption and would work toward resolving this issue.

    Question 2. Fuel surcharges should not be used by railroads as a 
cost recovery mechanism, and the STB has ruled that it is unreasonable 
for railroads to compute fuel surcharges in a manner that does not 
follow actual fuel costs for rail shipments. However, safe harbor rules 
can ensure that railroads are immune from challenges that they over-
recover actual changes in fuel costs. The STB is considering, but has 
delayed, rulemaking on rail fuel surcharges.
    Do you believe fuel surcharges imposed by rail carriers should be 
directly accounted for by changes to the carrier's actual fuel prices?
    If confirmed, will you move forward with rulemaking that would 
modify or remove the safe harbor provision to ensure fuel surcharge 
programs implemented by rail carriers are reasonable?
    Answer. I recognize the challenges to shippers who believe they are 
being charged in excess of current fuel rates. If confirmed, I would 
commit to working with STB staff and Board Members to reach a 
reasonable resolution of the rulemaking that is currently pending 
before the Board.

    Question 3. Section 16 of the STB Reauthorization Act (P.L. 114-
110) included a technical clarification making clear that Congress did 
not intend to require any change to how the STB determines revenue 
adequacy. How do you interpret Section 16 of the bill?
    Answer. The legislative history provides that ``[T]his section 
would not require any change to how the STB determines railroad revenue 
adequacy.'' See S. Rept. 114-52--Surface Transportation Board 
Reauthorization Act of 2015.

    Question 4. The STB is exploring its methodology for determining 
railroad revenue adequacy, as well as the revenue adequacy component 
used to judge reasonableness of rail rates. What further action do you 
believe the STB should take to ensure revenue adequacy tests work for 
all stakeholders and reflect economic realities, including the health 
of the rail industry and individual carriers?
    Answer. The STB currently has a rate reform task force to address 
these issues. The STB will be doing outreach with stakeholders in 
groups and one and one to discuss rate reform. The STB has committed to 
looking into these issues and I look forward to being a part of that 
process and learning more about it.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Dan Sullivan to 
                            Patrick J. Fuchs
    Question. Alaska is one of about 5 states where all freight rail 
service is provided by regional and shortline railroads, also known as 
Class 2 and Class 3 railroads. Many of these small railroads are in 
rural areas and were created from lines that would have been abandoned 
by the large Class 1 railroads, although in Alaska our railroad was 
previously owned by the Federal government.
    Regional and shortline railroads face the same types of challenges 
as other small businesses, because they are small businesses. Could you 
please give me your perspective on these small railroads and how you 
see the role of the STB in helping to preserve rail service in rural 
areas by these small railroads?
    Answer. I greatly appreciate the importance of small railroads to 
our Nation's rail transportation system. These railroads provide 
critical rail service to rural and other areas and often serve as 
crucial first and last mile connections throughout the Nation.
    The statutory provisions governing the Surface Transportation Board 
recognize the importance of continued rail service to rural areas. The 
abandonment provisions of section 10903 of title 49, United States 
Code, require that, in reviewing rail carrier requests for abandonment, 
the Board consider the impacts on rural and community development. The 
Offer of Financial Assistance provisions of section 10904, which give 
interested financially responsible persons the opportunity to purchase 
or subsidize a line subject to abandonment, provide a role for the 
Board in potentially facilitating continued service. If confirmed, I 
would approach the position with an understanding of the Board's 
statutory authorities and an appreciation for the importance of small 
railroads and rail service to rural areas.
                                 ______
                                 
    Response to Written Questions Submitted by Hon. Dean Heller to 
                            Patrick J. Fuchs
    Question 1. As you both know, the Department of Energy has an 
application before the Surface Transportation Board for a certificate 
of public convenience and necessity to build the Caliente railroad to 
Yucca Mountain. Given Congress' repeated refusal to fund the Yucca 
Mountain project, I do not believe the Surface Transportation Board 
should act on this application knowing that the project is not funded 
and that it is not going to be funded.
    Mr. Fuchs, during questioning, you indicated that you agreed with 
me, and you said that your understanding was that ``it's not the 
Board's practice to get out in front of a broader issue where it's not 
the lead agency.''
    Mr. Fuchs, if confirmed, will you commit to continuing the Surface 
Transportation Board's practice of not getting out in front of other 
agencies when it is not the lead agency?
    Answer. Recognizing that the construction and operation application 
for the Caliente Line is pending before the Board, and any decision 
would be based on the agency record, as a general matter I can say that 
the Board has a long history of cooperating with other agencies in 
cases involving environmental and safety issues. If confirmed, I intend 
to uphold the Board's practice of not getting ahead of an agency that 
is the lead in a particular matter.

    Question 2. Under the Nuclear Waste Policy Act, the Federal 
government is looking at shipping 9,495 rail casks in 2,800 trains and 
2,650 trucks hauling one cask each to Yucca Mountain over 50 years. 
These shipments would use 22,000 miles of railways and 7,000 miles of 
highways and cross over 44 states. Under previous questioning from me 
at this Committee, Federal Railroad Administrator Ronald Batory and 
Pipeline and Hazardous Materials Safety Administrator Howard Elliott 
confirmed that a transportation accident with an ensuing radiological 
release was possible.
    Mr. Fuchs, given the significant number of proposed shipments, the 
sheer distance to be traveled, and the 50-year duration of these 
shipments, do you agree with Mr. Batory and Mr. Elliott that there is a 
real risk of at least one transportation accident with an ensuing 
radiological release occurring?
    Answer. Understanding the construction and operation application 
for the Caliente Line is pending before the Board, and any decision 
would be based on the agency record, as a general matter I note that 
the Federal Railroad Administration and Pipeline and Hazardous 
Materials Safety Administration have primary responsibility for, and 
are the principal Federal government experts on, the safety of spent 
nuclear fuel transportation by rail. I respect their subject matter 
expertise, and I have no reason to disagree with their judgement on the 
possibility of a release.
                                 ______
                                 
    Response to Written Questions Submitted by Hon. Bill Nelson to 
                            Patrick J. Fuchs
    Gulf Coast Rail Service. As you know, restoration of Amtrak 
passenger service along the Gulf Coast will help the region meet its 
transportation needs and boost tourism and local economies.
    Question 1. In your view, do you think restoring rail service on 
the Gulf Coast is an important project?
    Answer. In my view, the actions of Congress and the enthusiasm 
shown in Gulf Coast communities indicate the importance placed on this 
potential service.
    As you know, in the Fixing America's Surface Transportation (FAST) 
Act (P.L. 114-94), Congress established a working group to evaluate the 
restoration of intercity rail passenger service in the Gulf Coast 
region between New Orleans, Louisiana, and Orlando, Florida, and 
Congress also authorized funds for the restoration or initiation of 
passenger rail service. In recent appropriations bills, as a result of 
your efforts and the efforts of Senators Wicker and Cochran, Congress 
has provided significant funding, via the authorized programs in the 
FAST Act, for the restoration or initiation of passenger rail service.
    In addition, I am aware that in, 2016, Amtrak--in partnership with 
the Southern Rail Commission--ran an inspection train touring a 
potential Gulf Coast passenger rail route, and the train generated 
significant crowds and enthusiasm in places such as Pensacola, 
Tallahassee, and Live Oak.
    If confirmed, I would approach the position with an understanding 
of recent Congressional actions and Gulf Coast events, and I would 
consider any issue related to this service from a fair and open 
perspective.

    Question 2. What steps should be taken to help restore Gulf Coast 
passenger rail service?
    Answer. A critical step would be for Amtrak and the host railroad 
to reach an agreement on the use of facilities and provision of 
services for the route. In many cases, a mutually beneficial, voluntary 
agreement leads to successful outcomes without the need for costly 
litigation.
    Under section 24308(a) of title 49, United States Code, if the 
parties cannot agree and if the Surface Transportation Board finds it 
necessary, the Board is responsible for ordering that facilities be 
made available, and services be provided, to Amtrak. The Board is also 
responsible for prescribing reasonable terms and compensation for such 
facilities and services.
    While there is not currently a case pending before the Board 
concerning this particular service, if the parties cannot agree, 
Congress has provided the Board with an important responsibility for 
resolving such a dispute.

    Passenger Service. On-time performance continues to be a challenge 
for many passenger rail lines. Without reliable service, many 
passengers may choose to not take the train and instead drive or take 
the bus, which adds to congestion and wear and tear on our highways.
    Question 3. In your view, what can be done to improve on-time rail 
service so that people can get to where they need to be when they need 
to be there?
    Answer. I am aware of the significant concerns with the on-time 
performance of Amtrak, and I understand how frustrating it is when 
passengers cannot rely on timely intercity passenger rail service to 
take them to business meetings, family visits, medical appointments, or 
other important destinations.
    The Surface Transportation Board issued a rule regarding on-time 
performance, citing authority in section 24308(f) of title 49, United 
States Code. However, the U.S. Court of Appeals for the Eighth Circuit 
vacated the Board's rule, finding that Congress instead delegated power 
only to FRA and Amtrak to establish on-time performance rules.
    The constitutionality of the joint rule issued by FRA and Amtrak--
covering on-time performance--is currently pending before the U.S. 
Court of Appeals for the District of Columbia Circuit (``D.C. 
Circuit''). The rule was not upheld in earlier court decisions. The 
outcome of this case will have implications for the Board. Under 
section 24308(f), the Board has authority to investigate issues with 
on-time performance in certain situations and to award damages and 
other relief depending on its findings. The determination on the 
constitutionality of the FRA and Amtrak joint rule will be critical to 
the Board's authority to conduct an investigation pursuant to section 
24308(f).
    Given the importance of the D.C. Circuit decision for the 
authorities of the Board, I would assess and determine what further 
action, if any, is needed to fulfill the Board's statutory 
responsibilities following such decision.

    Freight Railroad Investments. Service issues faced by railroads 
highlight the need for ongoing investment by railroads in 
infrastructure and resources--such as locomotives and employees. The 
ever-increasing demand to move freight will only further the need for 
more investment.
    Question 4. If confirmed, what will you do to make sure that the 
STB's policies do everything possible to promote private infrastructure 
investment?
    One of the most important responsibilities of the Board is to 
promote a safe and efficient rail transportation system by allowing 
rail carriers to earn adequate revenues, as determined by the Board. 
This responsibility is codified in our Nation's rail transportation 
policy in section 10101(3) of title 49, United States Code. Carriers 
that earn adequate revenues can reinvest those revenues in and--where 
necessary--expand the approximately 140,000-mile rail network. Through 
such investments, rail carriers are able to relieve congestion and 
facilitate the efficient flow of goods from production to destination, 
including ports, intermodal facilities, and factories.
    Oftentimes, regulatory policy affects private investment. If 
confirmed, I would carefully consider the effects of any new regulation 
on the rail system, including the effects on private infrastructure 
investment. I also would consider evidence submitted during the course 
of proceedings and would employ sound and objective analysis, using 
relevant data, to fulfill the important responsibilities of the Board.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Amy Klobuchar to 
                            Patrick J. Fuchs
    Question. In many rural parts of the country, shippers are served 
by only one railroad, so called ``captive shippers.'' These shippers 
can face increased costs in getting their products to market. Whether 
they are shipping grain, coal or paper, the increased costs get passed 
on to the consumer.
    If confirmed what steps would you take to ensure captive shippers 
have access to competitive shipping rates?
    Answer. One of the Board's core responsibilities is to maintain 
reasonable rates where there is an absence of effective competition, as 
codified in our Nation's rail transportation policy in section 10101(6) 
of title 49, United States Code. I understand concerns among many 
shippers that the current rate review processes are unduly costly and 
complex or otherwise not sufficiently accessible.
    If confirmed, I would focus on three initiatives relevant to this 
issue. First, in 2016, the Board issued an Advance Notice of Proposed 
Rulemaking to solicit comments on a new rate review process for small 
shippers. Public comments filed in this proceeding have presented 
valuable information for the Board to consider in evaluating its 
existing rate review processes. Second, in January 2018, the Board 
established an internal Rate Reform Task Force, staffed by expert 
lawyers and economists, to develop recommendations to reform the rate 
review methodology for large cases and improve options for small cases. 
I understand the Task Force plans to conduct extensive stakeholder 
outreach as it works to develop its recommendations. Third, pursuant to 
the Surface Transportation Board Reauthorization Act of 2015 (P.L. 114-
110), the Board reformed its arbitration process and certain mediation 
processes, and it remains open to ideas to improve alternative dispute 
resolution processes to mitigate the need for costly litigation.
    If confirmed, I would prioritize these initiatives, collaborate 
with other Board Members as appropriate, and work hard to see if there 
is a better way of ensuring rate reasonableness, consistent with 
applicable law and sound principles of economics.
                                 ______
                                 
 Response to Written Question Submitted by Hon. Richard Blumenthal to 
                            Patrick J. Fuchs
    Question. The goal of the STB in many respects is consumer 
protection. For shippers of commodities, coal, chemicals, agricultural 
products, automobiles and some other goods, the shippers--if you will--
are the consumers of rail. And if those shippers encounter unfair costs 
in shipping goods to market, then those high costs can ultimately be 
passed on down to consumers at the retail level.
    Protecting consumers is critical to me and a key focus of my work 
in the Senate. How would you articulate the STB's work as a consumer 
protection organization?
    Answer. The Surface Transportation Board has important consumer 
protection responsibilities, including--as codified in our Nation's 
rail transportation policy--to maintain reasonable rates where there is 
an absence of effective competition and to avoid undue concentrations 
of market power.
    In advancing the policy to maintain reasonable rates where there is 
an absence of effective competition, rail shippers served by market 
dominant rail carriers may file for a rate review before the Board. The 
Board has authority to provide reparations and relief to shippers whose 
rates are found to be unreasonable, protecting against potentially 
unfair costs in shipping goods to market.
    In advancing the policy to avoid undue concentrations of market 
power, the Board reviews mergers based on a public interest standard. 
In 2001, the Board set new rules concerning the merger of Class I 
railroads, and--using the Board's statutory public interest standard--
those rules require a demonstration that the transaction would enhance 
competition where necessary to offset negative effects. Given potential 
risks to consumers posed by undue concentrations of market power, the 
Board's statutory review and approval authority for mergers is another 
significant protection.
    The Board's consumer protection authority is not limited to these 
two examples. As other examples, the Board has authority to enforce the 
common carrier obligation, whereby a rail carrier must provide 
transportation to consumers upon reasonable request. And the Board 
generally adopts a pro-competition perspective in the evaluation of 
market entry applications, facilitating greater options for consumers.
    If confirmed, I would value the Board's consumer protection 
authorities, and I would work diligently to see if the Board could 
improve their use.
                                 ______
                                 
   Response to Written Questions Submitted by Hon. Tammy Baldwin to 
                            Patrick J. Fuchs
    Question 1. The Surface Transportation Board (STB) is examining 
existing class exemptions for certain commodities that would allow 
exempt commodities like steel and cement to be on the same playing 
field as nonexempt commodities. Currently, there is limited recourse 
for exempt commodities at the STB.
    The forest products industry is pursuing a revocation of their 
exemption. The exemptions for forest and paper products were approved 
in a series of decisions in the late 1980s and early 1990s, before 
major rail mergers that drastically consolidated the railroad market 
and has allowed the railroads to exert market power over shippers.
    The exemptions for forest and paper products are antiquated and 
were justified by a substantially different rail transportation 
marketplace and regulatory structure that no longer exist. Today, the 
exemptions hinder business and competition. Companies that ship paper 
and forest products are disadvantaged by commodity exemptions because 
they lack access to STB procedures that are available to non-exempt 
shippers to address rail rate and service concerns.
    If confirmed, will you give fair consideration to the case the 
forest products industry has made for the revocation of their exemption 
and move to finalize the rulemaking?
    Answer. As you point out, the review of commodity exemptions is an 
important on-going proceeding, with implications for the ability of 
certain shippers to bring rate and other complaints before the Board. 
While I cannot prejudge specific outcomes, I will give fair 
consideration to the case the forest products industry has made for the 
revocation of their exemption.
    As a general matter, I believe that, in these sorts of revocation 
proceedings, data-driven analysis--including examining empirical 
evidence concerning market conditions for specific individual 
commodities--would be especially helpful for guiding regulatory 
decision-making. If confirmed, I would collaborate with other Board 
Members as appropriate and the Board's expert staff to conduct such 
analysis and move this proceeding to conclusion.

    Question 2. Fuel surcharges should not be used by railroads as a 
cost recovery mechanism, and the STB has ruled that it is unreasonable 
for railroads to compute fuel surcharges in a manner that does not 
follow actual fuel costs for rail shipments. However, safe harbor rules 
can ensure that railroads are immune from challenges that they over-
recover actual changes in fuel costs. The STB is considering, but has 
delayed, rulemaking on rail fuel surcharges.
    Do you believe fuel surcharges imposed by rail carriers should be 
directly accounted for by changes to the carrier's actual fuel prices?
    Answer. I understand the concerns that have been raised regarding 
rail fuel surcharges and the ``safe harbor'' standard, which allows 
rail carriers to use a Board-approved fuel index to measure changes in 
fuel prices for the purposes of rail carriers' fuel surcharge programs.
    As you indicate, the Board issued an Advance Notice of Proposed 
Rulemaking in 2014. Given that this is a pending proceeding before the 
Board, I cannot prejudge specific outcomes. However, as a general 
matter, if confirmed, I would value the Board's role in ensuring that 
such surcharges are appropriate, and I would thoroughly examine the 
adequacy of the Board's current approach.

    Question 2a. If confirmed, will you move forward with rulemaking 
that would modify or remove the safe harbor provision to ensure fuel 
surcharge programs implemented by rail carriers are reasonable?
    Answer. If confirmed, I would carefully consider the concerns 
raised in public comments in this proceeding and evaluate the issue 
from a fair and open perspective. Working with other Board Members as 
appropriate and the Board's expert staff, I would diligently analyze 
the potential effects of proposals to modify or remove the safe harbor 
provision based on available information and decide on next steps based 
on that analysis.

    Question 3. Section 16 of the STB Reauthorization Act (P.L. 114-
110) included a technical clarification making clear that Congress did 
not intend to require any change to how the STB determines revenue 
adequacy. How do you interpret Section 16 of the bill?
    I am certainly aware that Senate Report 114-52, which accompanied 
the Surface Transportation Board Reauthorization Act of 2015 (P.L. 114-
110), stated that Section 16 does not require any change to how the 
Surface Transportation Board determines revenue adequacy. I am also 
aware of congressional correspondence with the Board supporting this 
interpretation.
    Because revenue adequacy is an open docket before the Board, I 
cannot prejudge a specific outcome. As a general matter, if confirmed, 
I would respect the statutory directives and authorities provided by 
Congress, and I would work closely with the Board's legal staff to 
ensure my interpretations and decisions were based on sound legal 
analysis.

    Question 4. The STB is exploring its methodology for determining 
railroad revenue adequacy, as well as the revenue adequacy component 
used to judge reasonableness of rail rates. What further action do you 
believe the STB should take to ensure revenue adequacy tests work for 
all stakeholders and reflect economic realities, including the health 
of the rail industry and individual carriers?
    Answer. Revenue adequacy is one of the most significant issues 
facing the Board. As you note, revenue adequacy is an open docket, and 
the Board solicited comments in 2014 and held a hearing in 2015 to 
examine the issue. I understand concerns among shippers that the 
current rate review processes are unduly costly and complex or 
otherwise not sufficiently accessible.
    In January 2018, the Board established an internal Rate Reform Task 
Force, staffed by expert lawyers and economists, to develop 
recommendations on rate review methodologies. I understand that the 
Task Force plans to conduct extensive stakeholder outreach. As part of 
this effort, the Board recently clarified that the prohibition on ex 
parte communications is not applicable at this stage of the revenue 
adequacy proceeding, thereby facilitating greater stakeholder input.
    I believe important further action for the Board would be to ensure 
the Task Force conducts broad outreach and searches expansively for 
better ways to review rates, consistent with applicable law and sound 
principles of economics. If confirmed, I would make the Task Force's 
work a top priority.

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