Federal Passenger Rail Funding Bill
May 17, 2008 by johnwirtz
I received the following e-mail about federal passenger rail funding. I think the most important part from Columbus’ perspective is the $345 Million per year available for “Amtrak to finance facilities and infrastructure improvements” if the state can come up with 20% matching funds. I also like the attempt to leverage private investment from the freight railroads. Hat tip to Noozer, who posted this story on Columbus Underground yesterday.
Dear Supporters and Members,
House Resolution H.R. 6003, the Passenger Rail Investment and Improvement Act of 2008, was unveiled May 8 by members of the House Transportation & Infrastructure Committee, with a press conference demonstrating bipartisan support of Amtrak intercity passenger rail service.
The $14 billion, five-year reauthorization includes about $1.34 billion per year for Amtrak’s capital needs, along with $606 million per year for operations. Amtrak’s fiscal year 2008 capital budget was $565 million.
The resolution also includes several provisions for advancing high speed rail development (or what some observers categorized as “higher speed” incremental rail approaches). Two such provisions include: the soliciting of proposals by the U.S. Department of Transportation to significantly upgrade and overhaul Amtrak’s existing Northeast Corridor (NEC); and proposals for two-hour express service between New York and Washington through less-dramatic improvements to existing NEC infrastructure, such as catenary, signaling, and/or additional high speed turnouts.
In addition, about $345 million per year would be provided to states and/or Amtrak to finance facilities and infrastructure improvements, as well as passenger equipment, for projects improving speeds to 110 mph. States would have to provide at least 20% of a project’s cost.
The bill also would establish a pilot program permitting freight railroads to partner with potential new passenger rail providers, and provide more than $400 million per year in matching funds that states could apply for to advance passenger rail improvements.
Notably absent is any mention of penalizing freight railroads for Amtrak’s on-time performance problems. U.S. Sen. Frank R. Lautenberg, D-N.J., recently said the cost borne by Amtrak for such problems was as high as $111.4 million, citing a study conducted by USDOT’s inspector general per Lautenberg’s request. The senator last October sponsored a bill empowering the Surface Transportation Board to investigate Amtrak delays and fine freight railroads held responsible.
A link to more information and video on the House Subcommittee hearing can be found here:
http://transportation.house.gov/hearings/hearingDetail.aspx?NewsID=599
Please Take Action!
Contact your Representative immediately and urge them to support H.R. 6003
to invest in passenger rail.
Explain to your Representative that the resolution contains language to support states looking into passenger rail development. (This funding can be used to implement Ohio Hub start-up service)Contact information for Members of Congress can be found here:
http://www.allaboardohio.org/cms/index.php/content/action/Thank you,
Andrew Bremer
Executive Director
Funding like what is proposed in HR-6003 is hugely important to the future of the Ohio Hub. The plan itself is predicated on the possibility of a strong federal role in funding state-generated passenger rail plans.
This bill was already passed last year by the U.S. Senate (S-294) by a vote of 93 to 6. HR-6003 is the House version of the same bill, but with even higher funding levels than what the Senate called for in S-294. HR-6003 needs to be passed by a veto-proof majority, so don’t take any vote for granted in Ohio’s delegation to the House. All of them need to hear from all of you.
HUGE news from Congress…. the next step is a full vote by the House…hopefully by a vfeto-proof majority….NOW is the time to be calling / e-mailing Cong. Tiberi, Pryce, Hobson and the rest of the Ohio delegation to support this.
Committee on Transportation and Infrastructure
U.S. House of Representatives, 2165 Rayburn HOB, Washington, DC 20515
http://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[/b]
[b]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 21st 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 108th and 109th 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 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.
Ø 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.
Ø 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.
Ø 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, freight railroads do not always comply with Amtrak’s access rights. 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.
Ø 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 $345 million each 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.
Ø 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.
Ø Resolves Disputes between Commuter and Freight Railroads. 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.
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Major news this afternoon.
The U.S. House just a few moments ago passed HR-6003, the Passenger Rail Investment & Improvement Act of 2008, by a veto-proof majority…. 311 to 104.
You’ll recall the Senate passed its version of the bill (S-294) by a 93 to 6 margin late last year.
The next step will be for the bill to go to a joint House-Senate Conference Committee. The conferees have not yet been named.
This bill, if it becomes law, will not only greatly increase funding for Amtrak, but carries the first-ever state matching grant program that can advance the Ohio Hub Plan and state-generated passenger rail plans like it around the nation.
Here’s how Ohio’s Congressional delegation voted today:
Nay OH-1 Chabot, Steven [R]
Nay OH-2 Schmidt, Jean [R]
Aye OH-3 Turner, Michael [R]
Nay OH-4 Jordan, Jim [R]
Nay OH-5 Latta, Robert [R]
Aye OH-6 Wilson, Charles [D]
Nay OH-7 Hobson, David [R]
Nay OH-8 Boehner, John [R]
No Vote OH-9 Kaptur, Marcy [D]
Aye OH-10 Kucinich, Dennis [D]
Aye OH-11 Jones, Stephanie [D]
Aye OH-12 Tiberi, Patrick [R]
Aye OH-13 Sutton, Betty [D]
Aye OH-14 LaTourette, Steven [R]
Aye OH-15 Pryce, Deborah [R]
Aye OH-16 Regula, Ralph [R]
Aye OH-17 Ryan, Timothy [D]
Aye OH-18 Space, Zackary [D]
This was e-mailed to me on 6/11:
“HR 6003, the Passenger Rail Investment Act of 2008, passed the House of Representatives by a veto-proof margin of 311-104. This bill will join the previously passed Senate Bill 294 and a version will be sent to the President for signature. Both the House and Senate Bill took an incredible amount of bi-partisan support.
Please thank your representative for passing this important piece of legislation!
Ohio Yea votes: 11
Ohio Nay votes: 6
Not voting: 1 (Kaptur)
Final Roll can be found here:
http://clerk.house.gov/evs/2008/roll400.xml
Thank you,
Andrew Bremer
Executive Director”
Interestingly, both of our Central Ohio Cong’s…. Pryce and Tiberi… voted “yes” on HR-6003. Make sure you let them know you appreciate it, but also make sure you urge them to uphold their vote if a Presidential veto is made.
http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20080701/OPINION02/807010310/-1/OPINION
Editorial published Tuesday, July 1, 2008
Re-training America
AT A TIME when Americans find long-distance road travel increasingly expensive and air travel close to unspeakable because of cuts in service and torment by security, thoughts inevitably turn to travel by train.
It’s not a viable alternative for many travelers, however. What’s left of passenger service in this country is offered largely by Amtrak, but service is spotty and its capacity falls far short of what the country now needs.
What needed to be done in the early 1970s, when the United States was facing another oil crisis, was to develop rapid-rail service capacity along the nation’s major arteries. (Amtrak has only limited high-speed service.) Tracks needed to be replaced, and new routes developed, capable of handling fast trains.
But it was not a priority for the “wise” leaders of both political parties, whether in the White House and in the Congress. The federal government was more interested in spending money on the Vietnam War, the arms race with the dying Soviet Union, and, most recently, the war in Iraq.
Installing rapid-rail capacity would have been expensive, of course, but Japan did it. France did it. The United Kingdom did it to some extent.
Convenient passenger rail travel was this nation’s transportation strength for much of its early history, and respectable service lasted until it was finally marginalized by the rise of the automobile in the post-World War II suburbanization of America.
A main barrier to the United States rejoining the modern world in rail travel has been the ingrained idea that railroads had to be profitable and not a creature of government subsidy. But was there ever any idea, for example, that the car and oil companies should build America’s roads? Or that the airlines should build the airports? No. Taxpayers built the infrastructure for those modes of transportation.
Now, of course, Americans’ transportation backs are against the wall. Gas prices continue to soar. The airlines are charging, beyond the basic ticket, for “frills” like assigned seats and checked bags. It’s no surprise that Amtrak served more riders in fiscal 2007 than at any time in its 37-year history. Last month alone, it had a 12 percent jump in passengers, which suggests a burgeoning appetite for train travel.
Today, however, trains are either nonexistent in parts of the country, have inconvenient running times - especially through Toledo - or are overextended in heavily traveled corridors like the Northeast.
This is another project for the new administration. America needs to build a new high-speed rail network. Use the money from an ended Iraq war. It will create jobs, for one thing. The country’s rail sector must join the 21st century. The times demand it.