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Jul 02, 2009: Hotline #611Hotline# 611 California transit riders won a monumental victory over the state government when an appeals court ruled on June 29 that the legislature may not raid the public transportation fund to cover budget shortfalls. The Third Appellate District Court decision reversed a previous trial court decision, and may cost the state $3.4 billion, the amount that has been diverted from the Public Transportation Account (PTA) over the last three fiscal years. The court claimed no authority to reclaim the $2.5 billion diverted since 2007, but would appear to prevent the Schwarzenegger Administration from redirecting $952 million this year. The PTA receives a portion of the revenues from fuel sales taxes and was designated a trust fund by Proposition 116 in 1990, a citizen’s initiative that also authorized a $1.99 billion bond measure for rail improvements that led—among other things—to the startup of the Capitol Corridor and Metrolink commuter trains in Los Angeles. The PTA is the funding source for the state’s intercity passenger trains as well as other transit programs California lawmakers are still struggling to come up with a budget resolution for a fiscal year that began yesterday. The loss of the diversion of a fuel tax to the general fund will be a blow for a state that has made it notoriously difficult to raise general tax rates. NARP applauds the work of the California Transit Association. The full decision can be found here. The current drop of 123 billion in vehicle miles traveled (or 4% off the previous 12 month period) eclipses even the 1979-80 gasoline availability crisis, and is due in large part to uncertainty about the economy and anxiety over the future of gas prices. “We may be witnessing the beginning of a fundamental shift in American driving habits,” Ed McMahon, senior research fellow at the Urban Land Institute, told USA Today, which ran a front page piece on the precipitous decline. Head to the NARP Blog for more coverage. “A revenue measure that repays the general fund contemporaneously is not feasible given the economic situation and pressing needs of the transportation system,” said the department. The DOT did not specifically identify the mechanism for paying back the Treasury, only saying the Administration is willing to consider a broad range of options, including changing the way international corporations based in the U.S. are taxed. House Transportation and Infrastructure Committee Chairman James L. Oberstar (D-MN) continues to disagree with the Administration and instead is pressing ahead with a $500 billion, six-year reauthorization bill that was approved in a House subcommittee on June 24. The Oregon city, in conjunction with surrounding Multnomah County, released a plan that aggressively targets CO2 emissions produced by transportation sources, looking to reduce transportation emission amounts 50% by 2030 (below the levels that existed in 1990). They plan on meeting these goals through an extensive network of light-rail, streetcars and buses; the promotion of bike and pedestrian friendly neighborhoods, where 90% Portland residents and 80% of Multnomah County residents can easily walk or bicycle to meet all basic daily, non-work needs; and implement pricing mechanisms on driving (such as congestion pricing and toll lanes) and direct these funds to non-automobile infrastructure. The U.S. Secretary of Transportation, Ray LaHood—who has been holding up Portland as a model city for what the Obama Administration is trying to promote in urban areas—visited the city on July 1 to praise the work they’ve been doing. “I came here today because Portland is the transportation capital of our country; Portland is the green capital of our country; Portland is the streetcar capital of our country; and Portland is the livable community capital of America” said LaHood. The Secretary visited the Oregon Iron Works—which the NARP Council toured last October— with Oregon Governor Ted Kulongoski and U.S. Representative Earl Blumenauer (D-OR). LaHood announced to a crowd of workers and reporters that these are the first streetcars to be manufactured in America in over 60 years, and they signal an important change for American labor. “I believe this is the dawn of a new era for public transportation in the United States; a new opportunity to claim ‘made in America.’” NARP and the Texas Rail Advocates are calling for a dedicated rail division to be created within the Texas Department of Transportation (TxDOT), which would enable Texas to better partner with the federal government to foster intercity and high-speed passenger rail within the state. We also advocate inclusion of a provision allowing local-options taxes, which allows counties to create direct-use taxes to fund transportation projects. Governor Rick Perry already signed two important bills into law on June 19. The first directs TxDOT to be the leader in coordination of a Statewide Passenger Rail System between all agencies, to create a long term plan for the rail in Texas, and to directly work with the U.S. DOT and Federal Railroad Administration to receive federal grants for intercity and high-speed rail. This bill takes effect on September 1. The second bill enumerates powers for Intermunicipal Commuter Rail Districts; designates which governmental entities can be a part of a commuter rail district; and also allows districts to acquire, construct, develop, own, operate, and maintain intermodal and commuter rail facilities. The final train bill signed by the Governor authorizes him to enter into, and provides advance legislative approval for, Texas’ participation in the Southern High-Speed Rail Compact with the states of Louisiana, Mississippi, and Alabama. The Southern California commuter rail agency’s Board of Directors voted unanimously to take over control in what will be a year long process. They will be looking at internal supervision, although they will also consider proposals by Amtrak, the previous operator. The move was in large part forced, since Veolia—which has been accused of lax employee oversight—refused to continue offering their services, not wanting to take on the insurance liability costs. The Chatsworth crash cost the lives of 25 people, injuring an additional 135. Lawsuits totaling millions of dollars are still pending. The bill in question would have provided the money necessary to cover Amtrak and MBTA insurance liability costs for running the passenger trains along the line. However, Governor Donald Carcieri failed to move the request for $200 million for insurance—and the $7.5 million evergreen letter of credit—forward for consideration by the state House of Representatives so that RIAC could meet its Amtrak requirements. Until a deal is reached, no MBTA trains will be running on the Amtrak lines, and the future of the Intermodal Station at T.F. Green Airport appears questionable or nonexistent. RIAC’s board of directors is not scheduled to meet this month. Financial difficulties forced Colorado Railcar to close in 2008, stranding transit agencies that bought equipment from the company and relied on them for maintenance and retooling. Assets acquired by US Railcar include the former Colorado Railcar DMU proprietary rights and information, manufacturing documentation, inventory, tooling, fixtures/jigs and other equipment necessary for production. Jul 10, 2009: Hotline #612Hotline #612 The annual Transportation Energy Data Book has been released by Oak Ridge National Laboratory (ORNL), under contract to the U.S. Department of Energy. This is a comprehensive study of energy usage and efficiency across all modes. It shows significant gains in efficiency for all types of rail travel, as well as air.. ORNL, an entity run as a non-profit and contracted by the Department of Energy’s predecessor in 1976, released the 28th edition of their Transportation Energy Data Book including data from the year 2007, and it showed a 12% improvement in energy efficiency for commuter rail, 7% improvement for heavy and light rail, and 5% improvement for Amtrak compared with the 2006 statistics. All Highway modes worsened slightly. The result of this trend makes Amtrak 19% more energy efficient than air and 28% more energy efficient than cars. The full report is at Oak Ridge National Laboratories’ website. In chapter 2, see table 2.12 at computer page 14. Amtrak had received no prior reports about the gate malfunctioning, and eye-witnesses from other automobiles reported seeing the teens’ car drive around the crossing gate. Media reports indicate that the driver had a long history of moving violations and his license had been suspended (again) just two days before the accident. The track is owned by Norfolk Southern Corp, and the company has announced it is testing the crossing gates to make sure they were functioning properly. “It’s very tragic, certainly for the family and friends of the people in the vehicle, but also for our crew,” Chicago-based Amtrak spokesman Marc Magliari told the Lansing State Journal. “There’s nothing they can do … to stop vehicles from disregarding warnings about an approaching train.” The car was dragged one mile before the train came to a complete stop. Magliari reports that none of the 170 passengers and four crew members were injured in the collision. Passengers told the Detroit Free Press that they were unaware that a car had even been hit, reporting only a jolt and a sound of grinding metal. Amtrak was able to use the train’s second engine to get the train to Dearborn, where passengers were transferred to a charter bus. The language was attached as a proviso to the allocation of $139 million in state funds for the hiring of staff and engineering firms. No legislator has taken public credit for inserting the stipulation. This news comes less than a week after Transportation Secretary Ray LaHood and Senate Majority Leader Harry Reid (D-NV) announced the extension of the federally designated California High-Speed Rail Corridor to Las Vegas. Senator Reid has recently publicly renounced his support for a high speed maglev line from Los Angeles to Las Vegas, instead shifting his support to the more conventional steel-wheel-on-steel-rail proposal. “The extension of the California corridor is another great example of regional cooperation, which will be critical to transforming travel in America and the creation of a national system of high-speed rail lines,” said Secretary LaHood. “We will continue to encourage new and innovative partnerships like this one. We believe that the development of regional high-speed passenger rail systems will create jobs, spur economic development, and provide positive environmental benefits for all Americans.” The recommendation will be a disappointment to many public officials and members of the general public, who advocate light rail as the better long-term solution for the region. A BRT line will cost an estimated $450 million to build, as compared to the $778 million projection for a light rail line. The widening of the highway, however, is estimated at $3.8 billion. Additionally, proponents for the rail line have cited the higher ridership and lower per-passenger-mile cost that generally accompanies light rail service, as well as the attractiveness that the permanence of the stations and tracks holds for real-estate developers. Construction has already begun on a light rail line in Washington, D.C. and the east-west Purple Line in Montgomery County is expected to be light rail. The track work—which will allow for higher speeds and provide a smoother ride—will take place between New York City and New Brunswick, N.J., and east of New Haven, Connecticut. It will force southbound trains leaving stations between Boston and New Haven to depart earlier; the trains will depart New Haven on their current schedule. Northbound trains will be departing New York City on time, but may arrive in Boston later than scheduled. The two new Sunday Acela Express trains will run between Boston and New York City—one southbound departing Boston at 5:10 pm and arriving in New York at 8:45 pm, and one northbound departing New York at 7:05 pm and arriving in Boston at 10:45 pm. Full details can are at Amtrak.com. From the news release: In about three months, Amtrak one-way and round-trip tickets will no longer be valid on Metrolink trains, with the exception of trips between Union Station and Burbank Airport, and on Metrolink/Amtrak code-share trains (Ventura County Line Trains 768 and 799). However, Amtrak 10-trip and monthly tickets will continue to be valid for travel on Metrolink, and Metrolink monthly passes will continue to be valid on Amtrak Pacific Surfliner trains within the station limits on the tickets or passes. At an as-yet-undetermined point in the future, the current Amtrak 10-trip ticket will be replaced with a new version that can be purchased only from Metrolink/Amtrak ticket vending machines and must be validated prior to boarding Metrolink and Amtrak trains; no refunds or exchanges of new Amtrak 10-trip tickets will be allowed. Metrolink will continue to accept current Amtrak 10-trip tickets until the new validation-ready tickets are available. Amtrak and Metrolink will provide updates on these changes before they occur. Elliott will be leaving the United Transportation Union, having served as its associate general counsel since 1993; he has represented the union before the STB in a number of proceedings. The STB, successor to the Interstate Commerce Commission, is an economic regulatory agency that Congress charged with resolving railroad rate and service disputes, and reviewing proposed railroad mergers. The expanded station hours are 6:30 am to 9 pm, seven days a week. The facility offer both short- and long-term parking Jul 17, 2009: Hotline #613Hotline #613 The Federal Railroad Administration announced that 278 pre-applications have been received for high-speed rail stimulus funds, totaling $102 billion. “The response has been tremendous and shows that the country is ready for high-speed rail,” U.S Department of Transportation Secretary Ray LaHood said. “It’s time to look beyond our highways and invest in public transportation services like rail, which will enhance regional mobility and reduce our carbon footprint.” Leading the way were the West Coast with 108 submissions totaling $38 billion and the Northeast with 79 applications totaling $35 billion. The South/Southwest had a total of 44 requests adding up to $16 billion, while the Midwest brought had 47 applications totaling $13 billion. Below is an aggregation of major pre-applications, based on news reports compiled by NARP. The FRA has complete summary data [PDF] of the pre-applications.
The FRA’s guidance provided for different “tracks” for funding to be distributed. Full applications are due August 24 for Track 1 (projects), Track 3 (planning), and Track 4 (FY09 appropriations projects). Full applications under Track 2 (high-speed rail and intercity passenger rail service development programs) are due October 2, 2009. Amtrak’s operating grant is $48 million below Amtrak’s request (which was $601 million) and $19 million below the Administration’s request of $572 million. This calls to mind Secretary LaHood’s statement that it doesn’t make sense to buy buses if you can’t pay the drivers. However, Amtrak “capital-and-debt-reduction” also is reduced to $930 million (even with the Administration request but $309 million below Amtrak’s $1.239 billion). The bill has $4 billion for high speed rail compared with the Administration’s $1 billion request, although $2 billion could be transferred to the proposed Infrastructure Bank if an authorization for the bank is enacted. The committee rejected 22-37 a Republican amendment to partly fix the Highway Trust Fund shortfall by shifting $3 billion in HSR money to the Highway Trust Fund. Totals for other transportation agencies are: $10.5 billion for the Federal Transit Administration ($148 million over the President’s request, due to a $150 million allocation for the Washington Metropolitan Area Transit Authority, allocated in response to the deadly Metrorail crash); $41.1 billion for the Federal Highway Administration; $9.3 billion for Federal Aviation Administration operations and $3.5 billion for airport improvement. The bill, a 25% increase over fiscal year 2009, is proving to be difficult to swallow for many Republicans on the committee. Representative Tom Latham (R-IA) has called the increase unnecessary and argues that there is “obvious stuff” to cut, such as the bill’s $3 billion for high-speed rail. Rep. Steve LaTourette (R-OH) proposed an amendment to address the $8 to $10 billion shortfall in the Highway Trust Fund. Chairman John Olver (D-MA) contended it is not the appropriators’ job to fix the deeply flawed trust fund, and pointed out the trust fund would run short of money well before this piece of legislation would take effect. The amendment was defeated.
If you’re state is one of those along the Sunset Limited’s route, contact your senator and congressperson and let them know you want the Sunset returned to full service. $400 million will go towards high-speed rail, a move designed to ensure the state is well positioned to receive a portion of the $8 billion stimulus funds. $150 million will go towards expansion of Amtrak intercity service. $322 million will go towards the Chicago Region Environmental and Transportation Efficiency (CREATE) program, a public-private partnership designed to untangle the freight and passenger rail gridlock that has plagued Chicago’s train yards—and, as a national hub, cost the American economy billions. The state money will be pooled with $200 million provided by private railroads and the federal government. The cars will consist of parts manufactured in Spain and assembled at facilities in Wisconsin. Gov. Jim Doyle (D) says that as many as 80 in-state jobs will be created. The deal includes an option for two more trains if Wisconsin receives additional stimulus funds. Members of Delaware’s Congressional delegation were in attendance. Rep. Mike Castle (R) praised the Administration’s dedication to passenger rail, and Sen. Tom Carper (D), a long time advocate for trains, said “our day has come.” In addition to the 81 cars, seven wrecked Superliner cars are being returned to service under an agreement with California. However, they have begun to recede this month, and demand remains weak. As reported by the government July 15, U.S. gasoline demand over the previous four weeks was up just 0.6% compared with the same period a year ago. The same report a week earlier (July 8) showed a 1.3% increase. A tow-truck containing two people was hit July 14 by a Amtrak’s eastbound Capitol Limited in Goshen, Indiana. Both passengers of the truck were killed; one of the train’s passengers was treated for breathing difficulties, and the Amtrak engineer went to the hospital with injuries that were reported as “non-life threatening.” Witnesses stated that the tow truck, which was hauling a motorcycle, went around the lowered crossing gates. A car in Ottawa, Illinois was hit by Amtrak’s westbound California Zephyr train on July 14; three of the car’s five passengers were killed. The car had stopped across the tracks. An Amtrak spokesman confirmed no one aboard the train was injured. A man was killed in Antioch, California, also on July 14, when his pickup truck was struck by an Amtrak train. The truck appeared to be following another pickup, which successfully cleared the crossing before the train arrived. There was no crossing guard, only a stop sign. Meanwhile, a surveillance tape definitely confirmed that the crossing gates were down and warning lights flashing at a Michigan crossing where five young automobile passengers lost their lives last week. A mere five miles down the road from where the Michigan accident occurred, there is a pilot safety system involving elevating plastic barriers to prevent exactly this kind of reckless behavior. But the $257,000 cost of these barriers—called delineators—is prohibitive, and there are a number of mechanical difficulties which have yet to be ironed out. In this economic climate it is unlikely they will become widely used anytime soon. There has been demonstrated success at reducing these kinds of accidents by directing law enforcement to treat rail-crossing violations with the same severity they would treat other moving violations—running a red light, for instance. There is, however, a constant battle to convince both the police officers and the general public that these circumventions of rail crossing safety mechanisms have grave consequences. Operation Lifesaver—a nationwide, non-profit public information program dedicated to reducing collisions, injuries and fatalities at highway-rail crossings—has announced they will tour Michigan schools to raise awareness about the dangers of ignoring grade crossing safety mechanisms. “From a simple traffic safety standpoint, we emphasize over and over and over again the importance of traffic safety,” Canton Public Safety Director John Santomauro told the Detroit Free Press. “This is an unfortunate and horrific reminder to people that you have to obey traffic laws, and there are immediate consequences if you don’t do that.” The company has cited large interest and depreciation costs as a major source of the financial problems. However, the operating company has been hurt by relatively low fares, low ridership and the collapse of the real-estate market when the company was looking to the commercial development of areas around their suburban stations as a source of ridership and revenue. An executive at a Taiwan bank informed the Financial Times that doubts over whether the high-speed line would ever turn a profit could be a major obstacle to servicing the loan. The hopes that the break-even point could be reached this year or the next have been dashed by the global recession. FT quoted another banker as saying “the feeling basically is that the government wouldn’t mind owning the whole thing at the end of the day.” Jul 24, 2009: Hotline #614Hotline #614 The House passed a $123.1 billion fiscal 2010 appropriations bill for Transportation and Housing on July 23 by a 256-168 vote. The bill contains $1.5 billion for Amtrak and $4 billion for high-speed rail. The Senate Appropriations committee is expected to mark up its draft version of the spending bill next week. It is crucial that senators hear requests to contact key appropriators regarding the importance of Amtrak’s $553 million operating grant request. Democrats should contact Senator Patty Murray (D-WA), who chairs the relevant subcommittee, and Republicans should contact Senator Kit Bond (MO), the subcommittee’s top Republican. If your senator is on the Appropriations Committee, please take a moment to call them and ask them to work for full funding of Amtrak’s request, including its operating grant In the House, Republicans were unhappy with the overall increase in discretionary levels, arguing that the transportation spending already included in the Recovery Act made this move unnecessary. “There’s a lot of good programs in this bill that I strongly support, but increasing all these programs by 25% at a time when we’re drowning in debt and experiencing the worst economic crisis in decades is simply unwise,” Representative Cliff Stearns (R-FL) told Congressional Quarterly. Receiving particular attention was the $4 billion Chairman John Olver (D-MA) included for high-speed rail, four times what the White House requested. Tom Latham (R-IA)—arguably at odds with Iowa Governor Chet Culver’s activities this week [see story below]—offered an amendment which would have cut the high-speed rail funds by $3 billion. It was defeated, 136-284. Olver said, “If we do not add significantly to [President Obama’s request] . . . then people will lose faith or wonder, are we in this seriously? Are we going to do high-speed and intercity passenger rail as has been proposed? I think we must keep this momentum going.” The House bill would also provide $10.5 billion to the Federal Transit Administration, and $64 million for railroad safety research. [Check here to see how your Congressman voted on the full bill, and here to see how they voted on the Latham amendment] The House Ways and Means—the tax writing committee—held a special subcommittee hearing with key members of the House Transportation & Infrastructure Committee on Thursday to flesh out methods to pay for a full reauthorization. T&I Chairman James Oberstar has already introduced the Surface Transportation Authorization Act of 2009, a $500 billion bill that would change how transportation projects are funded, and which projects are selected. Complicating matters is the decline in revenues from the gasoline and other user taxes that fund the Highway Trust Fund, due to increases in fuel efficiency and decreases in car travel caused by the slumping economy. The fund is just weeks away from meltdown. “We don’t have enough money to even fund our current inadequate transportation system,” Rep. Earl Blumenauer (D-OR) said. “The highway trust fund is in a death spiral.” Chairman Oberstar has proposed a $3 billion injection of general funds, arguing that more will not be needed when Congress passes the full reauthorization. Roy Kienitz, Undersecretary of Transportation for Policy, responded that the Administration does not believe this will be enough, and that a minimum of $5 billion will be required. Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA) has gone on record saying “I share your position that we should go forward” to Chairman Oberstar. But full Ways and Means Chairman Charles Rangel (D-NY) has yet to chime in. The Senate, meanwhile, continues to advance an 18-month reauthorization of existing legislation; the Commerce, Science and Transportation Committee added their approval to the bill that came out of Senate Environment & Public Works Committee on July 15. The White House said a stop-gap for the deficit in the Highway Trust Fund must be in place by the August recess. “This is really a big step for Caltrans. We took a proactive role to get a cleaner locomotive on the tracks, and we’re proud to see this project through,” said Caltrans Director Will Kempton. The conversion took place on an Electro-Motive Diesel Inc. Model F59PHI locomotive, built in October 2001. The state transit agency said the upgrade features “microprocessor-controlled engine technology designed to reduce emissions, increase fuel economy and boost reliability.” The new locomotive has already begun operations on Amtrak California’s Capitol Corridor between Sacramento and the Bay Area. Caltrans plans to convert their entire fleet of F59PHI locomotives, 15 in total, which will almost halve emissions level. The locomotive conversion is a joint project by Caltrans, Amtrak, EMD, the EPA, Capitol Corridor Joint Powers Authority, California Air Resources Board, Sacramento Metropolitan Air Quality Management District and Bay Area Air Quality Management District. The Governor will be joined by Rep. Phil Hare (D-IL), Quad City mayors, Iowa and Illinois state legislators, and other Iowa and Illinois federal representatives. The governor will then travel to the Midwest High Speed Rail Summit in Chicago. Full details can be found on the Quad Cities Chamber of Commerce website. According to ETCC, the changes are due to a 35% increase in ridership in 2008. The changes, which will take place August 1, will ensure that there is a ticket agent on hand for all departures and arrivals. The morning departure from Chicago and the 11:46 AM departure from Chicago (to Detroit) will have a Kalamazoo-Jackson “bus bridge,” meaning that Chicago-Detroit passengers will have a rail-bus-rail trip involving two transfers en route. Amtrak says eastbound passengers should expect a one hour delay departing Jackson, westbound passengers a 30-minute delay departing Kalamazoo. Amtrak will also be offering a special one-way $35.00 fare on the Adirondack to mark 35 years of the service on August 5 (discount code “x134). Up to 2 children ages 2-15 may accompany each adult at half fare. To see full restrictions for both offers, please call 1-800-USA-RAIL or visit Amtrak.com Jul 31, 2009: Hotline #615Hotline #615 The House and Senate—following the bad example set in the Administration’s budget—slashed the grant for national system operations $27 million below Amtrak’s request, making service expansion unlikely and possibly jeopardizing existing service. On July 30, the Senate slashed $381.4 million from Amtrak’s capital budget request. Last week, the House slashed even more—a whopping $453 million—leaving Amtrak with a capital grant $10 million less than this year’s level. If enacted, this would give Amtrak only 60% to 66% of the capital it requested. Since basic mechanical and engineering ‘state of good repair’ work will require $550 million, the Senate would provide less than $188 million (and the House less than $116 million) to buy the new equipment needed to replace Amtrak’s oldest cars and to support service expansion as well as investments required to comply with a reasonable interpretation of the Americans with Disabilities Act. In another blow to passenger train riders, the Senate appropriations committee provided only $1.2 billion for high speed rail, compared with the House’s $4 billion. The $8 billion for high-speed rail in the American Recovery and Reinvestment Act had inspired 40 states to submit 272 applications for over $105 billion of high-speed rail projects, investing scarce resources and man-hours in the belief that the federal government was committed to helping them bring about President Obama’s vision. The bill would prohibit the Federal Railroad Administration “from awarding grants until the agency has completed a national rail plan as required under the Passenger Rail Investment and Improvement Act.” Presumably, this prohibition does not apply to Recovery Act funds. Noting today’s House vote (next paragraph), Capon wrote, “Evidently citizens must shout still louder to Washington before federal funding will move clearly to rectify decades of neglect of rail and overemphasis on highways and aviation. That change will be necessary to create a cleaner, safer, more-efficient transportation network.” To keep the surface transportation reauthorization issue hot, Chairman James Oberstar (D-MN) of the House Committee on Transportation & Infrastructure had originally sought to limit the fix to $3 billion, and then $5 billion, but finally yielded to lobbying by his Senate counterparts and Transportation Department officials, who argued that the $3 billion wouldn’t provide enough money to continue to reimburse states through the end of FY 2009 (September 30, two months from now). Oberstar is seeking a full $500 billion, six year reauthorization. Senators, following the White House’s lead, has argued that the legislative schedule is too packed to allow the proper deliberation of a full reauthorization, and are pushing an 18-month, “clean” reauthorization of existing law. The Highway Trust Fund relies largely on money from the gasoline tax, and revenue has been falling well short of necessary expenditures as auto fuel-efficiency increases, as construction costs rise, and as the recession continues to depress vehicle miles traveled. The $7 billion will be transferred to the trust fund from the general fund. The auto trade-in program offers up to $4,500 in tax credits for auto owners who trade in cars for more fuel-efficient models. The old car must get less than 18 mpg to be eligible. However, compromise in the drafting of the program means an upgrade of as little as three to four miles per gallon makes you eligible for the tax credit. Senators Dianne Feinstein (D-CA) and Susan Collins (R-ME) have vowed to fight for higher fuel-efficiency standards, a move sure to draw opposition from representatives of the auto industry. The $2 billion will be transferred from Title 17 renewable energy loan guarantees. At a ceremony on Monday morning, representatives from the eight states and Chicago—including Illinois Gov. Pat Quinn, Michigan Gov. Jennifer Granholm, Chicago Mayor Richard Daley, Senator Dick Durbin (D-IL), Ohio Gov. Ted Strickland, Wisconsin Gov. Jim Doyle, and Iowa Gov. Chet Culver—signed a memorandum of understanding to coordinate and develop an inter-governmental plan to develop 110 miles per hour-plus corridors throughout the Midwest. “The president’s high-speed rail map talks about the importance of the Chicago hub and the corridors extending from it,’’ Jolene Molitoris, director of the Ohio Department of Transportation, told the Chicago Tribune. “We are hoping to send six million or more Ohioans on high-speed trains to the Olympics in Chicago (in 2016).’‘ Several members of the agreement are hoping that the initiative will resuscitate the ailing manufacturing sector in the region; Wisconsin just entered into an agreement under which Talgo will build two, 14-car trains for $47 million, with assembly to take place in Wisconsin. “If you look at the Buy American provisions of the stimulus act, that means we’re going to have to build the rail cars in the United States, which they are not built in the U.S. now… It means we’re going to have to build a whole supply chain around those rail cars.” Governor Jennifer Granholm of Michigan told a radio show on Tuesday in Detroit. The website—3CisMe.ohio.gov—provides details and information about the route and promotional videos. The state is also hoping to use the site to solicit feedback and opinions from state residents. The committee initiated their investigation after former Inspector General Fred Weiderhold, who resigned last month, issued a report that accused Amtrak managers of impeding his monitoring of their use of stimulus funds. Lorraine Green, a 12-year Amtrak veteran, took over as acting Inspector General. She reportedly plans to return to her previous job once a permanent replacement is named. Chairman Edolphus Towns (D-NY) and Darrell Issa (R-CA) have criticized the move, arguing a once-and-future coworker lacks the objectivity needed to provide proper oversight. “The independence of Amtrak’s inspector general is critical to effectively weed out waste and fraud, especially now with increased stimulus spending at Amtrak,” Towns wrote in a statement that accompanied the committee’s letter to Amtrak. “By installing one of their own as inspector general, it looks like Amtrak management is trying to take the teeth out of the watchdog.” Towns and Issa gave Amtrak until today to respond. As of this writing, no public comment was forthcoming. It should be noted that the Amtrak inspector general reports to the board chairman, not to management. Coal shipments increased to 125,000 carloads, a jump of 8% from the May total. Intermodal traffic—the majority of which is consumer goods—was at 189,000 carloads, a jump of 8,000 units from May. Sand and gravel (a key element in the construction of roads) rose from 15,000 to 16,000 carloads in the same period. Some are pointing to these indicators as good news; Warren Buffett has famously looked to the movement of freight-rail in attempts to presage economic trends. The Association of American Railroads’ Vice President of Policy Analysis, when reached by a reporter, cautioned that despite this one-month job, rail traffic is still down 19.5% year-over-year. Earlier this week, Amtrak released the details of the tours. “Trains, Planes, Limousines and Motorcycle Tour” uses the Auto Train to transport motorcycles north to Virginia, will be available through October, and includes a back-roads tour of several Southeastern states. “Arctic Escape to the Sunshine State Tour” uses the Auto Train to transport motorcyclists to Florida, will be available from November through January, and includes a tour of the Florida Keys. See First Class Motorcycle Tour’s website for details. |
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