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Hotline #615
July 31, 2009
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.
NARP President Ross Capon wrote to Senator Patty Murray (D-WA), Chair of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development on July 27 urging full funding. NARP today issued a release critical of the Amtrak funding level and the Senate’s slashing of high speed rail funding.
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.”
The House, succumbing to pressure from the White House and Senate, agreed to a $7 billion stopgap for the Highway Trust Fund. The bill passed the House on July 29, and passed the Senate without amendment on July 30. President Obama is expected to sign it.
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 House passed an extension of the “cash-for-clunkers” today which would provide $2 billion more, after the original $1 billion was exhausted in the first week. The program was intended to last until April. The bill passed the House by a 316 to 109 vote. The Senate is expected to take it up next week.
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.
Eight Midwestern states and the City of Chicago entered into an agreement on July 27 which seeks to accelerate the development of high speed and intercity passenger rail in the region. The states are Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, Wisconsin.
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 state of Ohio on July 28 launched a new website promoting the “3C” rail line that will connect Cleveland, Columbus Dayton and Cincinnati.
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 Chairman and ranking Republican member of the House Oversight Committee have issued a letter calling for the removal of Amtrak’s acting Inspector General, citing internal conflicts of interest.
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.
The Association of American Railroads reported in the July 21 edition of their Rail Time Indicators that June marked the first time in 2009 that the average weekly U.S. rail carloads increased.
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.
Amtrak announced a partnership with First Class Motorcycle Tours to provide two Auto Train vacation packages, which include first-class accommodation and transportation for motorcycle riders between Lorton, VA (just south of Washington D.C.) and Sanford, FL (just north of Orlando).
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.
Amtrak’s Capitol Corridor is offering 25 percent discounts on fares during Oakland Raider home games throughout the 2009 season (excluding Monday night games).
This offer is good for the August 8 “Raider Nation Celebration.” Tickets for up to two children under 15 riding with an adult will be half price.
Passengers should go to CapitolCorridor.org and enter code H811 for the 25 percent discount offer, or call 877-9-RIDECC for details. Beginning Tuesday at 10 a.m., both ACE packages will be available for online purchase here and here.
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