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A reprint from the Boston Globe

McCain's agenda on Amtrak

By Derrick Z. Jackson

The Boston Globe

July 1, 2008

TRAIN TRAVEL is finally becoming a third rail of politics. The first one to fry over it might be John McCain.

For years, McCain, in the comfort of cheap gasoline for autos and airplanes, made Amtrak a personal whipping boy. Despite the fact that governments in Western Europe and Asia zoomed far ahead of the United States by supporting high-speed trains to relieve congestion, promote tourism and now as we are coming to know, save the planet, McCain has spent considerable capital in denying the passenger rail system the capital to modernize.

In 2000, when he was chairman of the Senate Science, Commerce and Transportation committee, McCain killed $10 billion in capital funding for Amtrak. He denounced Amtrak as a symbol of government waste, claiming, "There's only two parts of the country that can support a viable rail system - the Northeast and the far West."

He made these claims though Amtrak investment had the support of several notable Republicans. Senator Trent Lott of Mississippi warned that Amtrak "is guaranteed and doomed to failure if we don't give it an opportunity to succeed. If you don't have modern equipment, if you don't have the new fast trains, if you don't have a rapid rail system, it will not work."

Tommy Thompson, the secretary of Health and Human Services during President Bush's first term, was Amtrak chairman when McCain blocked the funding. Thompson said, "The traveling public are sending a distress call to escape our nation's endless traffic jams and airport gridlock."

Although Thompson claimed "remarkable progress in turning Amtrak around," despite a past where "it was not run like a business," McCain ignored the distress call. In 2001, then-Amtrak president George Warrington said the funding of rail in America was so bad, it was comparable to similar funding in Estonia and Tunisia.

McCain said, "Amtrak needs to make more progress before any further funding schemes are enacted," while at the same time calling any money for progress a "multibillion-dollar blank check." In 2002, McCain declared that "Amtrak should be restructured to eliminate its reliance on the American taxpayers and to allow for its privatization."

In 2003, McCain allowed that new Amtrak president David Gunn "increased efficiency rather dramatically." But McCain continued in years afterward to fight the capital improvements needed. McCain became a self-fulfilling prophet, making sure that Amtrak remained exactly what he feared it would be, "the albatross blocking the development of a program that actually meets the needs of the traveling public."

Suddenly, the traveling public is demanding the development of commuter and high-speed intercity rail. According to the American Public Transportation Association, light rail (streetcars) was up 10 percent in the first quarter of this year, commuter rail was up by 6 percent, and subways were up 4 percent (Boston subway travel was up by 9 percent).

The House and Senate have passed bills calling for new investments in passenger rail, creating the same federal incentives for states to invest in rail service, offering 80 cents for every 20 cents spent by the states. Barack Obama is a cosponsor of the Senate bill. Noting on his website that he is committed to the development of high speed rail, Obama said, "In many parts of the country, Amtrak is the only form of reliable transportation."

In the section of McCain's website called "reforming our transportation sector," there is no mention of rail. There is only his clean-car challenge to automakers, his $300 million prize to design battery cars, and enforcing only existing gas mileage standards. When The Washington Post reported on how President Bush's fiscal 2006 budget did not include a subsidy for Amtrak, would kill both $20 million for the next generation of high-speed rail, and $250 million for railroad rehabilitation, it quoted McCain as saying on television, "I'm glad the president is coming over with a very austere budget."

The luster of austerity is gone. Public transportation is becoming a real issue for the campaign trail. If so, McCain has all but handed Obama a golden spike to beat him over the head with.

Congress Adjourns

The House has adjourned for the July Fourth recess; reconvenes at 2 p.m. Tuesday, July 8.

The Senate meets in pro forma session, then adjourns for the July Fourth recess; reconvenes at 2 p.m. Monday, July 7.

President Bush signs this year’s war supplemental appropriations act; attends a White House T-ball game.

Illinois Governor Says
Cut Trains

Budget stalemate threatens Amtrak

June 26 2008 - Associated Press

A group of Amtrak supporters is criticizing Governor Rod Blagojevich

proposal to cut the states support of passenger train service at a time

when high gas prices are on nearly everyones minds.

Ross Capon of the National Association of Railroad Passengers is

sarcastically calling the proposed funding cuts a great way to respond

to $4-a-gallon gasoline.

Among $1.5 billion in budget reductions proposed by Blagojevich on

Tuesday is the elimination of $28 million for train routes to and from

Chicago at points throughout the state.

If the state decided to eliminate its Amtrak contract, trains between

Chicago and St. Louis, and Chicago Carbondale would be cut.

The number of riders on the lines is up in the last year, a fact Capon

says makes any threats to cut Amtrak service ill-timed.

Railroad Passengers Decry Governor's Budget Proposal June 25 2008 -

Midwest High Speed Rail Association (news release)

Transportation Funding Bill Moves

Highway Funding in Trouble

6/20/08.  With money in the federal Highway Trust Fund running dangerously low, there is a lot of pressure on the Transportation appropriators in Congress to find some answers.

The House Appropriations Transportation-HUD Subcommittee reported legislation today with fiscal year 2009 funding for both Transportation and Housing and Urban Development (HUD) departments and a handful of independent agencies. The total is $6.1 billion more than was enacted in fiscal 2008 and $4.4 billion more than President Bush requested. This is the same bill that includes funding for Amtrak and other rail passenger needs every year. But the pressure to resolve the shortfall in highway funding also puts downward pressure on rail passenger funding.

The bill provides $1.439 billion for Amtrak and $114 million to fund the recommendations of the Presidential Emergency Board for back pay. It also includes $60 million for the states for their rail passenger needs. Amtrak asked Congress for $1.785 billion and the Bush Administration proposed $900 million which would have required significant service cuts.

Transportation experts project a $3.7 billion deficit in the highway fund in fiscal 2009. Lawmakers already have dismissed Bush’s proposal to borrow $3.2 billion from the mass-transit fund, calling it a “rob Peter to pay Paul” solution. And efforts in the Senate to use a Federal Aviation Administration reauthorization to replenish the fund were snarled when the bill stalled.

Transportation advocates hope that Congress will fix the trust fund shortfall soon so planned highway projects can proceed, said Dave Bauer, senior vice president of government affairs for the American Road and Transportation Builders Association.

Bauer’s organization is part of the Transportation Construction Coalition, made up of 27 groups. It has launched an effort through advertisements and direct lobbying to warn that if the trust fund runs dry, states would lose 34 percent of their highway and bridge funding and 485,000 jobs could be at risk.

The trust fund is filled directly by revenue from gasoline taxes, but those receipts have not kept pace with inflation or growing transportation demands due to higher gasoline prices and a reduction in driving patterns. Disasters like the 2007 bridge collapse in Minnesota also contributed to the fund’s fiscal problems.

A Senate proposal, which may be added to a temporary reauthorization of the FAA now that the longer bill has stalled, would shift $8 billion from the general Treasury to shore up the trust fund. That idea is supported by Sen. Patty Murray, D-Wash., chairwoman of that chamber’s Transportation-HUD Subcommittee.

“I think the fact that Senator Murray is working on this shows that they need to do this outside of the appropriations process,” Bauer said.

The annual bill funds not only the departments of Transportation and Housing and Urban Development (HUD) but also independent agencies, including the Federal Maritime Commission, National Transportation Safety Board and Washington Metropolitan Area Transit Authority.

The bill now goes to the full Appropriations committee and then to the floor of the House. 

Fiscal 2009 Appropriations: Transportation and Housing

House Appropriations — Subcommittee on Transportation and Housing

On Friday, June 20, 2008, the Transportation, Housing and Urban Development, and Related Agencies Subcommittee (Chairman Olver, D-Mass.) of House Appropriations Committee will begin to draft legislation that would make fiscal 2009 appropriations for programs under its jurisdiction, including Amtrak, highways, transit, aviation and all other transportation programs.

The Bush budget proposes about $68 billion for fiscal year 2009 for all transportation, of which, $900 million would be for Amtrak.

The president of Amtrak says the passenger railroad will need more than double the funding that the Bush administration proposed for fiscal 2009, but Democratic appropriators say such a big boost is not in the cards.

Alexander Kummant, Amtrak’s president and CEO, said at a hearing earlier this year that with the cost of fuel and health insurance rising and a labor dispute settlement costing millions of dollars, the company needs more federal funding.

Kummant said he needs $506 million just to meet operating costs and an additional $801 million for capital projects. He called his total request of $1.671 billion “responsible and realistic.”

But John W. Olver, D-Mass., chairman of the House Appropriations Transportation-HUD Subcommittee,(and a supporter of passenger rail) said point blank that Congress will not be able to meet that request. The panel faces a tight squeeze as it writes the 2009 annual spending bill for transportation and housing programs.

“It’s an impossible puzzle,” Olver said. “I don’t know how to do some of the things they want.”

The White House asked for $800 million for Amtrak in fiscal 2009 with an additional $100 million to expand the one-year-old Intercity Passenger Rail Grant Program, which awards federal money to states.

The Bush administration has repeatedly tried to reduce the passenger railroad’s operating subsidy. Congress has routinely funded Amtrak at higher levels, but not nearly as much as the company says it needs. For fiscal 2008, the White House sought about $900 million for Amtrak; the railroad received about $1.3 billion.

Spending Priorities

In the coming year, Amtrak wants to ensure all of its equipment is in a “state of good repair,” to extend intercity service and to reduce travel times, Kummant said. But even with ridership at record highs, he said, Amtrak cannot shoulder cost inflation without help from the federal government.

Amtrak also owes some of its unionized workers back pay for the nearly eight years they worked without a wage increase. Amtrak has asked Congress for $114 million to help pay its employees.

Kummant said the Bush appointed Presidential Advisory Board that was created in November 2007 to hear the dispute between Amtrak and its workers knew that Amtrak did not have the means to pay 60 percent, or $114 million, of the retroactive pay and recommended that Congress fund the amount.

Federal Railroad Administrator Joseph H. Boardman said Amtrak must continue to reform and control spending. He suggested changing how passengers are charged and moving away from fuel toward electrification.

Kummant said Congress should have a dedicated funding source for Amtrak, much like the gasoline tax that funds highways. “That’s what turns us into a political football,” he said. “We’re such a large discretionary spending piece.” The question always is “where will those funds come from?”

If the economy remains stagnant and Amtrak doesn’t receive the increases it is asking for, Kummant said, routes could be cut and layoffs could be inevitable.

“We’ll have to see where the economy goes,” he said. “There are going to be some tough choices.”

With gas prices now over $4 per gallon, people are flocking to passenger rail. Amtrak is now projecting the highest ridership in the company’s history—over 27 million.  Unfortunately, it does not have the capacity to accommodate all the people who want to use it. It needs more equipment, infrastructure capacity and more frequencies.

What Amtrak needs is an infusion of cash outside of the appropriations process like they received in 1997 under the Taxpayers Relief Act when it was provided a $2.3 billion “tax refund” to fund capital needs. Unfortunately, the Amtrak management at the time made questionable investments that were not in the long term best interest of passenger rail and the only growth it experienced was its debt.

Next Step For Amtrak Bill

6/12/2008.  The House passed an Amtrak authorization bill Wednesday, but a provision that helped win Republican support could complicate negotiations with the Senate.

In the face of a presidential veto threat, the House voted, 311-104, to pass a $14.4 billion Amtrak authorization bill that includes language to promote private development of a high-speed rail line in the Northeast Corridor.

The compromise by Democrats, who have long resisted proposals to privatize some Amtrak operations, drew enough Republican support for the bill to achieve a majority that could override a presidential veto.

But Senate allies of the nation’s passenger railroad may be less willing to accept the deal on privatization.

“I’m going to fight to make it as strong as we have it here,” said Sen. Frank R. Lautenberg, D-N.J., author of the Senate-passed Amtrak authorization. “I think it’s very difficult to privatize railroads and have it operate efficiently.”

The Senate passed its $11.4 billion Amtrak authorization (S. 294) in October. Both bills would authorize the railroad for five years. Lautenberg said public concern about $4-a-gallon gasoline should pressure Congress to move quickly to conference and may persuade President Bush to sign the first Amtrak authorization bill in 11 years.

The House bill would allow private companies to bid on construction of a rail line between Washington and New York City that would get passengers between the two cities in less than two hours. The bill would also identify Amtrak’s two least successful rail lines and allow private companies to take them over.

But the language does not go far enough to satisfy the White House, which has long pressed to privatize all or part of Amtrak.

In a statement of administration policy, the White House said Bush would veto the House bill because it would not make “meaningful reforms in Amtrak’s governance or operations” and would not allocate resources based on the demand for rail service.

Before Democrats assumed control of Congress last year, the GOP-controlled House would typically back the administration’s calls for deep cuts in Amtrak appropriations, while the Senate would come closer to supporting the railroad’s budget request. Appropriators would end up compromising with just enough money to keep Amtrak limping along.

“With a combination of Republicans and Democrats looking to the future, we have been able to just keep Amtrak’s nose above water over these intervening years,” said James L. Oberstar, D-Minn., who chairs the House Transportation and Infrastructure Committee. “Today we change that model.”

Amendments Adopted

The House adopted several amendments to the bill, including one that would give the Washington Metropolitan Area Transit Authority a $1.5 billion boost to relieve crowding on the Metro transit system. That amendment, by Thomas M. Davis III, R‑Va., was adopted by a vote of 295-127.

Another, by Patrick J. Murphy, D-Pa., would require Amtrak to report to Congress on the results of an evaluation of passenger rail between Cornwells Heights, Pa., and New York, and between Princeton Junction, N.J., and New York.

The House rejected, 150-275, an amendment by Pete Sessions, R-Texas, that would have prohibited Amtrak from spending money on the Sunset Limited, which runs between Los Angeles and New Orleans. Sessions argued that the long-distance route is a money-loser. The 150 that voted to end the Sunset Limited will be published on this website so everyone can see who the opponents of long distance trains are in the House of Representatives.

The House also adopted by voice vote a manager’s package by Oberstar, which included language to bar the use of funds in the bill to employ illegal immigrants.

Oberstar’s amendment would also require the Transportation Department to study how to streamline compliance with historic-preservation rules. Representatives of the Alaska Railroad and the North Carolina Department of Transportation testified at a hearing last week that the rules have significantly hampered their ability to make repairs.

Fund Authorizations Included

The bill would include a $4.2 billion authorization for capital grants. It would also authorize $3 billion for operations, including money to help Amtrak repay the millions of dollars it owes unionized workers for the nearly eight years they worked without a wage increase.

About $2.5 billion would be authorized for states to finance new or improved intercity passenger service. And the bill proposes $1.75 billion over five years for grants to states and to Amtrak for high-speed rail corridors.

The measure is also intended to alleviate tensions between freight and passenger rails by creating federal guidelines to deal with negotiations over rights of way. Amtrak has endured significant delays when waiting for freight trains to pass. The delays have reportedly cost Amtrak over $36 million of dollars in lost revenue.

ROLL CALL VOTE # 397

H R 6003      RECORDED VOTE      11-Jun-2008      1:57 PM
      AUTHOR(S):  Sessions of Texas Amendment

House Members Who Voted Against Long Distance Trains By Supporting  the Sessions Amendment

House Passes Amtrak Bill

6/11/08.  The House of Representatives today passed an Amtrak authorization bill, HR 6003, by a vote of 311 to 104. This is the first time in approximately 11 years  that the House was able to pass an Amtrak authorization.

Federal investment in Amtrak is provided through the annual appropriations process from discretionary funds. This investment has varied significantly from year to year, depending on overall budget conditions and political support. Amtrak’s last authorization, the Amtrak Reform and Accountability Act of 1997, reauthorized Amtrak for five years, providing a total of $5.3 billion for fiscal years 1998 through 2002. However, Federal investment in Amtrak remained inconsistent and frequently failed to meet authorized spending levels. As a result, Amtrak was forced to take on new debt to finance its basic system needs. As a result, the cost of the debt is costing taxpayers more than if the full funding was appropriated in the first place. Today, a majority of Amtrak’s $3.2 billion long-term debt stems from equipment capital leases acquired during this period that allowed Amtrak to preserve its operations. This long-term debt is reduced somewhat by assets related to defeased leases. Amtrak spends approximately $300 million per year in servicing this debt, a cost that would not exist if the government provided adequate funding.

Summary of Bill:

Increases Capital and Operating Grants to Amtrak.

The bill authorizes $4.2 billion (an average of $840 million per year) to Amtrak for capital grants and $3.0 billion (an average of $606 million per year) for operating grants. Past inconsistent Federal support has hampered Amtrak’s ability to replace catenaries, passenger cars, bridges, ties, and other equipment necessary for Amtrak to provide service. These capital grants will help Amtrak bring the Northeast Corridor to a state-of-good-repair, procure new rolling stock, rehabilitate existing bridges, as well as make additional capital improvements and maintenance over its entire network. In addition, the operating grants authorized under the bill will help Amtrak pay salaries, health costs, overtime pay, fuel costs, facilities, and train maintenance and operations. These operating grants will also ensure that Amtrak can meet its obligations under its recently negotiated labor contract.

Develops State Passenger Corridors. In an effort to encourage the development of new and improved intercity passenger rail services, the bill creates a new State Capital Grant program for intercity passenger rail capital projects, and based on the New Starts transit capital program administered by the Federal Transit Administration. The bill provides $2.5 billion ($500 million per year) for grants to States to pay for the capital costs of facilities and equipment necessary to provide new or improved intercity passenger rail. The Federal share of the grants is up to 80 percent. The Secretary of Transportation would award these grants on a competitive basis for projects based on economic performance, expected ridership, and other factors.

Provides Funding for High-Speed Rail Corridors. The National Surface Transportation Policy and Revenue Study Commission, established to develop a national transportation vision to address surface transportation needs for the next 50 years, recommends that the United States establish a high-speed rail network that spans the entire country. The bill authorizes $1.75 billion ($350 million per year) for grants to States and/or Amtrak to finance the construction and equipment for 11 authorized high-speed rail corridors. The Federal share of the grants is up to 80 percent. The Secretary of Transportation would award these grants on a competitive basis for projects based on economic performance, expected ridership, and other factors.

Alleviates Rail “Choke Points.” Many of Amtrak’s service routes outside the Northeast Corridor suffer from poor service reliability and on-time performance because of freight traffic congestion. This congestion prevents Amtrak from retaining and attracting new ridership, and increases Amtrak’s operating costs. The Department of Transportation Inspector General recently reported that if Amtrak achieved an 85 percent on-time performance outside the Northeast Corridor in fiscal year 2006, it would have saved Amtrak $136.6 million, or almost one-third of its operating budget. Amtrak is required by law to have preferred access on freight corridors; however, Amtrak does not always receive its preferred access. The bill addresses this problem by providing congestion grants to Amtrak and the States for high-priority rail corridors in order to reduce congestion and facilitate ridership growth. The Congressional Budget Office estimates that this program authorizes $520 million from fiscal years 2009 through 2013.

Reduces Amtrak’s Debt. Federal support of Amtrak was cut drastically in fiscal year 2000 and 2001, forcing Amtrak to assume a large amount of debt to stay in operation. Amtrak has aggressively targeted this debt, paying down $600 million from 2002 through 2007. Our bill helps Amtrak to take further steps to reduce its debt, authorizing $1.7 billion ($345 million per year) for debt service through FY2013. This funding will allow Amtrak to focus its resources on improving existing services and making additional capital and operational improvements.

Establishes an RFP for High-Speed Rail Service. A provision of H.R. 6003 directs the Secretary of Transportation to issue a request for proposals for projects for the financing, design, construction, and operation of an initial high-speed rail system operating between Washington, DC, and New York City. Proposals would need to meet certain financial, labor, and planning criteria, as well as a detailed description to account for any impacts on existing passenger, commuter, and freight rail traffic to be considered. If the Secretary receives a qualifying proposal, she would be directed to form a Commission to study any proposals received. Finally, the Secretary would issue a report to the Congress on the Commission’s findings. Any further action on a proposal would need legislative approval by Congress.

 Resolves Disputes between Commuter and Freight

Currently, no Federal guidelines exist to mediate disputes between commuter rail providers and freight railroads over use of freight rail tracks or rights-of-way, nor is there a standard forum for negotiating commuter rail operating agreements. The bill establishes a forum at the STB to help complete stalled commuter rail negotiations, helping our rail network operate as efficiently as possible. This section is identical to what was included in H.R. 2701, the “Transportation Energy Security and Climate Change Mitigation Act of 2007”, as ordered reported by the Committee on Transportation and Infrastructure on June 20, 2007.

Summary of Amendments Submitted to the Rules Committee for

 H.R. 6003 - Passenger Rail Investment and Improvement Act of 2008

Listed in Alphabetical Order

The Amtrak authorization bill will be on the House floor soon and the following is a list of Amendments that may be offered to the bill when it comes before  the full House of Representatives.

Budget Resolution Passes

On June 6, 2008, the House of Representatives gave final approval to the fiscal 2009 budget resolution.

The vote to adopt the final version of the budget resolution was 214-210. No Republicans voted “yes,” while 14 Democrats voted against their party’s plan.

The Senate adopted the plan June 4 by a vote of 48-45.

Democrats crowed that Congress has adopted a final blueprint in an election year for the first time since 2000. Republicans acknowledged that accomplishment but attacked the plan as big on spending and taxes.

The budget resolution does not become law but rather spells out the parameters for spending and tax bills throughout the year. It sets the stage for Congress to begin to address funding the operation of the government. It sets an overall spending cap for the 12 annual appropriations bills, and committee markups of those measures can move forward now that the budget has been adopted.

The Democrats’ budget resolution calls for $24.5 billion more in discretionary spending than the $991.6 billion President Bush requested. Bush has threatened to veto bills that exceed his target, but Democrats may wait for him to leave office before completing work on the more controversial bills. The Appropriations committees will begin work this month, with the first House subcommittee markups next week. Congressional Democrats admit their budget blueprint will serve mostly as a placeholder until the new president and new Congress are elected. They do not plan to tackle major spending or tax issues this year.

Funding for transportation, including passenger rail may not get approved until January of 2009 even though the fiscal year begins on October 1, 2008.  Funding for Amtrak, transit and other transportation programs will probably be at the current year’s level under what is known as a “Continuing Resolution” until a final bill can be enacted.

NEWS from the T&I Committee

Committee on Transportation and Infrastructure

U.S. House of Representatives, 2165 Rayburn HOB, Washington, DC 20515

www.house.gov/transportation

Hon. James L. Oberstar (Minn.), Chairman

For Immediate Release, Thursday, May 22, 2008

Contact:  Mary Kerr, (202)225-6260

T&I Approves Historic Amtrak Legislation

Bill authorizes $14.4 billion for passenger rail

WASHINGTON—A bill to reauthorize Amtrak and improve intercity passenger rail was approved and reported out by the Committee on Transportation and Infrastructure today.  H.R. 6003, the Passenger Rail Investment and Improvement Act of 2008, authorizes $14.4 billion for Amtrak capital and operating grants, state intercity passenger grants, and high-speed rail over the next five years.

“Today’s markup is a historic milestone, because the legislation we approved today is a truly significant and long overdue investment in the nation’s passenger rail system.  We can address many of the nation’s most pressing transportation problems by improving Amtrak’s service and operations, because increased passenger rail ridership will alleviate growing highway and airport congestion,” said Rep. James L. Oberstar (Minn.), Chairman of the Committee.  “The National Surface Transportation Policy and Revenue Study Commission, a bipartisan commission created by Congress, found that we should invest at least $66.3 billion through 2015 in our passenger rail infrastructure, stations, and rolling stock.  This investment is essential to make passenger rail stronger, and in turn, to make our national transportation systems safer, less congested, and more environmentally friendly.”

The bill helps Amtrak bring its assets to a state-of-good-repair, improves service reliability and increases train speed; helps Amtrak replace its aging rail fleet; provides grants to pay salaries, overtime, and benefits to Amtrak employees; provides grants to alleviate “choke points” across the nation where lack of rail capacity is hampering ridership growth; and provides grants to enable states and Amtrak to develop and construct high-speed rail corridors throughout the country. 

“Amtrak’s improved physical state and recent focus on customer service, along with increasing highway and airport congestion and rising gas prices, have made intercity passenger rail more popular and necessary than ever,” said Rep. Corrine Brown (Fla.), Chairwoman of the Subcommittee on Railroads, Pipelines, and Hazardous Materials.  “Passage of H.R. 6003 will be the first major step in bringing our nation’s intercity passenger rail system into the 21^st Century.  The American people deserve the best passenger rail system in the world, and I believe this Amtrak Reauthorization will go a long way to raise the United States to its rightful place as a world leader in passenger rail.”

In the 108^th and 109^th Congresses, the T&I Committee reported out bills to reauthorize Amtrak.  Despite strong bipartisan support in the Committee, Republican leadership did not allow the legislation to receive floor consideration.  Since 2002, Amtrak has continued to operate under minimal annual appropriations, despite the Bush Administration’s repeated attempts to dissolve Amtrak.

“We ought to at least do in America what has been done in France to promote passenger rail service,” said Oberstar.  “Our bill provides significant funding for state grants, giving states greater leverage to develop their passenger rail networks by partnering with the Federal Government to help fund up to 80 percent of the cost of developing state passenger rail networks.  These grants will help develop rail systems in the emerging ‘mega-regions,’ bringing greater mobility to the fastest growing regions of the country.  H.R. 6003 ensures the continued success and growth of our safe, efficient, and essential national passenger rail system, and through this legislation, we have created a lasting legacy for America.”

Major provisions of the bill include:

Ø       Authorizing $4.2 billion (an average of $840 million per year) to Amtrak for capital grants and $3.0 billion (an average of $606 million per year) for operating grants; 

Ø       Creating a new State Capital Grant program for intercity passenger rail capital projects;
Ø       Authorizing $1.75 billion ($350 million per year) for grants to states and/or Amtrak to finance the construction and equipment for 11 authorized high-speed rail corridors;

Ø       Providing congestion grants to Amtrak and the states for high-priority rail corridors in order to reduce congestion and facilitate ridership growth;

Ø       Authorizing $345 million each year for debt service through FY2013; 
Ø       Directing the Secretary of Transportation to issue a request for proposals for projects for the financing, design, construction, and operation of an initial high-speed rail system operating between Washington, DC, and New York City; and 

Ø       Establishing a forum at the Surface Transportation Board to help complete stalled commuter rail negotiations.

The Committee also approved H.R. 6109, which reauthorizes the predisaster hazard mitigation program under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.  The three-year authorization bill requires that predisaster mitigation grants be awarded on a competitive basis with each state guaranteed a minimum amount and eliminates sunset provision in the law.  Additionally, H.R. 5001, the Old Post Office Building Redevelopment Act of 2008, was approved by voice vote.

###

Mary A. Kerr

Press Secretary

House Committee on Transportation & Infrastructure

B-376 Rayburn HOB

Washington, D.C.  20515

Passenger Rail: An Election Issue

As this election year progresses, it is becoming more clear that support for rail passenger service is a good thing to be in favor of during this period of high gas prices and the strong need to reduce our dependence on foreign oil.

In the State of Montana, for example, Democrats are again hoping to unseat Republican U.S. Representative Denny Rehberg this November after several failed attempts in recent years to draw the Montana Republican into a competitive race.

It appears Democrats think that the way to beat Republican Congressional candidates is to tie them as closely as possible to President Bush’s legislative agenda.

Congressman Rehberg denies that he has voted too often with President Bush, and claims he has voted against him on farm issues, Amtrak funding and rural essential air service, among other things.

He said he plays an important role as the only Republican in the state's congressional delegation, no matter who is in control. There is some validity to that point. Having bi-partisan support for rail passenger service is essential if we are ever going to get away from the idea that we just give Amtrak enough money to survive every year.  We need much more balance in our national transportation policy, but we need the kind of balance that places more emphasis on those modes of transportation that will actually help us become less dependent on foreign oil and that are more fuel efficient—that means more rail passenger service.

This PAC is non-partisan and will support candidates who have made rail passenger service a priority.  Make sure you find out which candidates in your Congressional District are the strongest supporters of rail passenger service before you vote this November.

House Holds Hearing on Passenger Rail

On Wednesday, May 14^th the House Transportation and Infrastructure Committee held a hearing on a bill that will make major investments in Amtrak’s rail lines and allow the rail system to buy new equipment. In addition to authorizing over $14 billion in funds for Amtrak, the bill would allow states and interstate compacts to issue $12 billion in tax exempt private activity bonds and $12 billion in tax credit bonds for high speed rail corridors over the next 10 years. In both cases, $1.2 billion per year is authorized over that 10 year period.

Private activity bonds are debt instruments issued by states and local governments, the bond proceeds of which are used to benefit a non-public entity, such as a private company. Under tax law requirements, states are limited in the amount of private activity bonds they can issue to $80 per resident, or $246 million, whichever is greater.

The bill also allows $1.2 billion per year in tax credit bonds. These are taxable bonds which allow investors to receive a tax credit in lieu of interest. In both cases, any unused balances could be carried over to subsequent years.

The Secretary of Transportation would establish preferences for projects that meet certain requirements, such as those projects that mix tax credit and tax exempt bonds, link passenger rail to other modes of transportation, obtain state/local financial support, or reduce air traffic congestion.

The bill is called the Rail Infrastructure Development and Expansion Act for the 21^st Century or RIDE 21. This legislation will need to clear the House Ways and Means Committee, which has jurisdiction over tax policy, before it can reach the House floor for a vote. That committee has rejected these types of tax policy recommendations in the past.

The bill, introduced by the Committee’s Chairman, Congressman Jim Oberstar and the Ranking Republican, John Mica, also sets aside $850 million for grants to finance new high-speed rail projects across the nation. “We need to invest in passenger rail and commuter rail,” said Oberstar. “In an economy where gas is nearing $4 a gallon, we need to do all we can to conserve fuel and give commuters alternatives.”

As chairman of the House Committee on Transportation and Infrastructure, Oberstar was able to secure bipartisan support for the legislation before it was introduced. At a recent news conference, Oberstar said he expects the House of Representatives to approve his bill before the August Recess.

“At a time of increased political tension in Washington and on the campaign trail, I am very pleased that we were able to reach bipartisan agreement on this important rail bill. When we can reach across party lines, make concessions to one another and put forth a package in the public interest, it will pass,” said Oberstar.

“Bipartisanship counts for something in this congress and when we can reach across party lines, make concessions to one another and put forth a package in the public interest – it will pass,” said Oberstar.

Amtrak, which received $1.35 billion in funding for the current year, has been underfunded since its creation. There have been times when the tax writing committees in Congress have stepped in to pass legislation that allowed a policy that resulted in an infusion of cash for rail passenger infrastructure and equipment, such as the Taxpayer Relief Act of 1997. That bill included a “creative funding” provision that gave Amtrak a $2.3 billion tax refund over a two year period and helped to stabilize it during a critical time.

With Americans concerned about the cost of fuel, they are serious about seeking alternatives to driving and flying but are faced with the reality that this country has not invested wisely in its railroad infrastructure in the past.  As a result, there are limited options available for those looking for a modal change.

If this country ever expects to reduce its dependence on foreign oil, it will have to adopt a policy like RIDE 21 and allow travelers more options in modes that are more efficient than cars and airplanes. Europe and Asia (even Viet Nam) have developed or are in the process of developing high speed rail projects. It is hard to believe that America is so far behind.