NARP September 1996 Hotlines

#946 - September 6, 1996
#947 - September 13, 1996
#948 - September 20, 1996
#949 - September 27, 1996
#949-A - September 30, 1996

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Appropriations conferees did not meet this week to discuss H.R.3675, the 1997 DOT funding bill. They may meet next week. Early information we are getting from Capitol Hill paints a grim picture for Amtrak. Staff seem to be leaning toward doing no better for Amtrak than splitting the difference between the Senate and House figures for Amtrak capital and the Northeast Corridor. But any amount that is below the Senate numbers will be disastrous for Amtrak. All NARP members need to call their Senators again to ask them to tell conferees that the Senate Amtrak numbers must be preserved by all means.

Sen. Kay Bailey Hutchison (R.-Tex.) is still planning to hold a hearing in Washington on September 10 on the Amtrak service cuts. NARP has asked to testify.

The Amtrak board will meet September 10-11.

Hurricane Fran made landfall last night on the Atlantic coast at Wilmington, N.C., and headed north toward Raleigh and the Virginia Piedmont. Amtrak and CSX began canceling passenger trains yesterday, with no alternate transportation offered. Only the following ran yesterday -- all Richmond and Newport News trains, the Carolinian and Piedmont, and the Silver Meteor between Miami and Jacksonville only.

Today, nothing is running south of Richmond and southwest of Washington. The northbound Crescent this morning was annulled at Greensboro due to a washout, and probably will be sent south as tonight's train. Today's eastbound Cardinal will be terminated at Huntington, W.Va., and turned as the westbound train. Crescent and Cardinal passengers will be bussed around affected areas. Anyone planning to use Amtrak services that pass through Virginia and the Carolinas over the next couple days should call Amtrak first.

Amtrak has announced it will move one New Haven-Boston train over to the Inland Route. Amtrak claims this is unrelated to its plans to discontinue the Boston section of the Lake Shore Limited on November 10. This reroute will preserve Amtrak service to Framingham and Worcester, but does nothing for passengers seeking direct service between New England and points in the Midwest and beyond.

We are also hearing that Amtrak is considering a plan it wisely rejected a year ago -- that of replacing the Cardinal with a weekend train between Washington and Huntington. That would end all service to Cincinnati and Indianapolis and serve almost no basic transportation function.

Amtrak is cutting fares between certain Northeast Corridor stations on Saturdays during September. The one-way fares, which are reduced between 33% and 50%, are valid locally in three segments -- Boston-Providence, Hartford-New York, and New York-Wilmington.

The San Joaquin Regional Rail Commission has announced it will buy eight commuter coaches from Bombardier. The total cost will be $16.6 million for four bi-level cab cars and four coaches. This should allow delivery by December 1997, at which time the Commission plans to start its Altamont Express commuter service from Stockton to Livermore and San Jose.

The Clinton Administration proposes -- for the first time ever -- to have the federal government assume much of the cost and responsibility for airline security, according to the Washington Post (today). The government would buy and install multi-million-dollar bomb detection systems for major airports. The Post quoted Congressional sources saying that the total cost of such systems would be between $1.5 billion and $3 billion. The Administration believes this is proper as a way to counteract terrorism. However, by relieving airlines from this responsibility, the Clinton proposal might also be considered a subsidy to users of airports, particularly if the money does not come from the Aviation Trust Fund.

The conference committee on the 1997 DOT appropriations bill, H.R.3675, met and finished their business late on September 11. The Amtrak total is $760 million, up from $750 million in 1996. Amtrak system capital is $223 million, much closer to the Senate than to the House figure, but still down from $235 million in 1996 and still below Amtrak's annual depreciation level of about $250 million. Capital helps cut operating costs, which is crucial when operating grants are plunging.

For the Northeast Corridor, Amtrak got $115 million, the same as 1996. Amtrak says that level likely will allow the Boston electrification project to continue through the year, but warns that if that is the pattern for the future, there will be delays.

If the whole high-speed package is not ready on schedule in fall 1999 -- three years from now -- then Amtrak will not fully enjoy the benefits of the increased revenues that service will bring. And that has implications for the Amtrak system as a whole, which may be close to having no operating grant by then.

The committee did not change items on which the House and Senate bills already agreed -- $200 million for Amtrak operations, $142 million for mandatory payments, and $80 million for maintenance facilities for the Northeast Corridor high-speed train sets. The bill now must be reapproved by both Houses and signed by the President by the end of this fiscal year, September 30.

The conference committee adopted language that lets states apply for Congestion Management and Air Quality (CMAQ, part of ISTEA) money to save the trains that Amtrak will cut on November 10. That is a long-shot probably dreamed up to make people think that it solves the problem. Although Federal Highway personnel reportedly will be receptive to applications and waive the normal CMAQ eligibility criteria, state DOT's and local planning organizations still must go through a lengthy process and highway interests will fight hard to block this use of gasoline-tax money. Furthermore, there must be a 20% non-federal match.

The conference report still could get derailed -- and transportation still could wind up in the catch-all 1997 continuing resolution -- because of two controversial features -- a highway funding allocation fight and a provision involving a high-profile child custody case.

In any event, efforts are going forward to use the continuing resolution to provide additional money for the Northeast Corridor, the Gulf Coast Limited, the Texas Eagle, and possible other services. The process began when Sen. Frank Lautenberg (D.-N.J.) identified $80 million in unobligated transportation funds. There is also talk of using an even larger chunk out of $1 billion that Congressional leaders have made available to avoid Presidential vetoes. This is an insiders game but continued pressure on behalf of threatened routes might still save them.

The Amtrak board met September 10 and 11. There was no public session and final action on service cuts is likely at the next meeting on September 24, pending the outcome of Congressional action.

The Senate Commerce Transportation Subcommittee held its hearing on Amtrak service cuts on September 10. It was chaired by Kay Bailey Hutchison (R.-Tex.), who said, "Dismantling Amtrak piecemeal won't be cost effective." She said it's not reasonable to ask Amtrak to cut costs without having an authorization bill in place with needed reforms, and that she supports a dedicated capital funding source. Other Senators echoed those sentiments. Hutchison said that it still may be possible -- and certainly desirable -- to move the Amtrak authorization bill this month, perhaps without a couple of the more contentious reforms in it, like the liability language. There were several Congressional and community witnesses, including NARP Executive Director Ross Capon.

Hurricane Fran continued to wreak havoc on Amtrak trains long after it swept through the Piedmont area September 6. The Auto Train station at Lorton, Va., was an ugly scene on September 7 when scores of passengers arrived with their cars after having been told erroneously by the 800 number that day that the train would run. The Capitol Limited has run only between Chicago and Pittsburgh, with passengers bussed around the flood-ravaged Potomac Valley. The Capitol was further disrupted September 10 when the westbound train had to detour over the Michigan line between Toledo and Gary due to a freight derailment at La Porte, Ind. MARC service began running from Brunswick on September 11. On September 10 and 11, the Silver Star was running, but detoured via Charlottesville and Charlotte to Columbia. The same days, the Silver Meteor ran, except for a nighttime bus bridge between Richmond and Florence. The Auto Train still was not running those days.

The Southern Pacific Rail Corporation officially ceased to exist on September 11, as documents representing $5.4 billion in cash and stock were exchanged in a New York City office building. Union Pacific now is the largest railroad in the U.S., bigger than the Burlington Northern Santa Fe, which was formed in another merger in 1995. The Union Pacific plans to spend $1.3 billion to upgrade Southern Pacific infrastructure. The first operational change takes place later this month, when UP dispatchers take over the former Rio Grande main line between Salt Lake City and Denver, which is the route of the California Zephyr.

Both the House and Senate approved the conference committee version of H.R.3675, the 1997 transportation appropriations bill. Senators Biden and Roth of Delaware spoke on the floor in favor of the Amtrak half cent. The bill next goes to the President for signature.

Congress still may pass the half cent this coming week, either in an omnibus spending bill or in another bill shifting the 4.3-cent deficit-reduction fuel tax into the highway trust fund. Please again tell your Senators and Representative about the half cent and urge them to work to make it happen. Today's New York Times has an editorial supporting the Amtrak half cent but opposing the shift of the 4.3 cents. However, with Congress nearing adjournment, legislative options are dwindling. The only revenue measure awaiting consideration this year is the one shifting the 4.3 cents, so the only way to get Amtrak's half cent enacted this year is for it to be part of that deal.

Also, next week, there may be a move to give Amtrak additional funds beyond those in the DOT funding bill. These funds would be added to the omnibus spending bill for programs whose appropriations bills have not passed yet. Should a deal be struck, it likely would provide money to continue some of the routes Amtrak planned to drop November 10 and some additional Northeast Corridor money.

The omnibus bill appears to be the only hope for saving routes Amtrak planned to end. The one exception is that Massachusetts officials may pay to keep some type of Boston-Albany service running. Although at this point a Lake Shore Limited connection seems unlikely, NARP is telling Amtrak and the state that the present service is the best option.

The report language on the DOT bill making the threatened routes eligible for CMAQ funds seems to be a non-starter. Unfortunately, careless reporting has meant that many people on the threatened routes think their trains have been saved. This is not true.

NARP is continuing to press Amtrak to find cost-effective ways to improve on Amtrak's announced plans for the Sunset Limited and Texas Eagle.

Other items from the conference report include the fact that conferees somehow figured out a way to give highways, aviation, and transit more money than was contained in either the House or Senate bill.

Also, there is language requiring the FRA to do a study on privatization of intercity passenger rail. This idea was pushed hard by Washington consultant Ray Chambers, whose clients include small freight railroads and the manufacture of the engine used in the refurbished New York turbo trains. This bears watching, as one of the study options is complete withdrawal of a federal role in funding intercity trains. However, the language is not as harsh as previous calls by the conservative Discovery Institute of Seattle for a privatization that would end all long-distance service.

The Next-Generation High-Speed Rail program got nearly $25 million, up from last year. The State of Oregon will get $8 million of it for track improvements on the Eugene line and extension of the positive-train-separation trials to the Northwest. The conferees directed the FRA to study rebuilding the Ravenna Connection, which is needed for train service from Pittsburgh to Cleveland via Youngstown. The Alaska Railroad gets $10 million for its passenger operations.

Amtrak began Thruway bus service to Key West, Fla., on September 4. It connects with the Silver Star in both directions at Fort Lauderdale. After November 10, the bus will connect only with the southbound Silver Star and northbound Silver Palm.

The northbound City of New Orleans was delayed three hours on September 18 after it hit a dump truck on a rural, private crossing near Amite, La. The truck driver was killed, but no one else was injured. The lead locomotive was damaged.

Congress still may fund through early May the trains Amtrak planned to cut November 10, as well as the Gulf Coast Limited, which otherwise would make its last trip September 30. This extra Amtrak money would be included in the pending continuing resolution that Congress must pass before it can adjourn.

The money already is in the Senate version of the bill. Senators Hatfield (R.-Ore.) and Lautenberg (D.-N.J.) took the lead in providing these funds. The Senate bill includes $22.5 million for the six months of added service, plus additional Northeast Corridor funds.

The major obstacle to passage is House Transportation Appropriations Subcommittee Chairman Frank Wolf (R.-Va.). Partly because of Wolf's opposition, Rep. Bob Livingston (R.-La.), who chairs the full Appropriations Committee, has not supported the additional funding even though the Gulf Coast Limited serves his New Orleans district.

Senator Roth (R.-Del.), meanwhile, has been working hard to get the half cent attached to the continuing resolution. The next few days will be crucial to Amtrak's future. Please call -- again -- your Members of Congress to support efforts happening now with the continuing resolution to provide more funds to run threatened Amtrak trains, and to provide for the Amtrak half cent.

The Amtrak board approved a five-year business plan for Amtrak, a 1997 capital budget, and a 1997 operating budget, on September 24. All board members voted for each measure, except Dan Collins, who holds the labor seat and voted against each one. The operating budget included the recommendations by Amtrak Intercity management to end all service to 42 stations. Several members expressed regret at the service cuts. Don Pease said that the resulting network is barely acceptable as a national network, and that any more cuts would end any pretense of a national network. Sylvia De Leon expressed special regret over the demise of the Texas Eagle, noting the strong community support shown at regional forums last year. She unsuccessfully urged the board to consider an exception for that train. Deputy Transportation Secretary Mort Downey called the service cuts "tough and perhaps risky choices."

Should Congress reverse the board's actions, it is not yet clear what would happen to the additional frequencies Amtrak has planned. Our best guess is that the City of New Orleans will switch to daily anyway, the New York-Florida service will be restructured as planned, and the Capitol Limited-Southwest Chief run-through will go forward. It is unclear whether the Broadway Limited will run. Still, Senator Hatfield's proposal is important because it keeps Amtrak in key markets like Dallas, while the new Congress decides what to do with Amtrak.

Today's Wall Street Journal reports that Transportation Secretary Pena is sure to leave the Clinton Administration next year and that Chicago Mayor Richard Daley may be his successor.

Amtrak trains using CSX tracks in North Carolina are still experiencing significant delays, three weeks after Hurricane Fran came through. The reason given is signal problems. CSX's indifference to passenger trains is quite well known. But these signal problems must also be affecting CSX's freight customers. This is 1996, not 1896, and passengers hope CSX some day will figure out a way to keep its antiquated signal system from blowing down at every breeze.

Michigan DOT expects to start its trial of 110-mph service on the line between Kalamazoo and New Buffalo on October 11. Initially, only a 20-mile segment in the center of that line will be tested, but more will be added as the changes to the signal system are made. The current speed limit is 79 mph, due to the lack of cab signals. A new signal system using computer terminals in engine cabs and satellite technology will be used. Amtrak and the FRA are participating.

Also, the Journal of Commerce reports that Michigan DOT is preparing a study that so far calls for a three-route commuter rail system for Detroit. Fourteen trains a day would serve Ann Arbor, Pontiac, and Mount Clemens.

A House-Senate conference committee approved an omnibus spending bill on September 28 that has money in it for Amtrak, aviation, and highways. This is in addition to funds already approved in the regular DOT funding bill. The House has approved the conference report already, and the Senate is expected to do so today.

For operations, Amtrak would get $22.5 million to continue service on routes Amtrak had planned to terminate. Report language says this includes the Texas Eagle, Desert Wind, Pioneer, Gulf Coast Limited, and Boston Lake Shore Limited. NARP today asked Amtrak to keep running the Sunset Limited to Miami, but that is still unclear.

Omnibus bill report language says the funds will support service until the affected state legislatures have an opportunity to meet and decide whether to "buy back" services, or take other action necessary to permit the services to continue. Funds are available until September 30, 1997, but legislators understand the funding is good for six months. Therefore, service seems assured until early May, except perhaps where a state announces sooner that it is unwilling to spend any state funds on the services.

Planned service expansions are uncertain, with decisions expected this week. Amtrak still plans to run the third New York-Florida service, the Silver Palm. It will also run the Broadway Limited, possibly as a coach-only train for now, although NARP today suggested a way to include a sleeper from the start. The City of New Orleans apparently will continue to run only six days a week. Daily service on the California Zephyr and Empire Builder is uncertain.

The omnibus bill also contains another $60 million in capital funding for the Northeast Corridor.

Senators Lautenberg (D.-N.J.), Hutchison (R.-Tex.), and Hatfield (R.-Ore.) and the Clinton Administration deserve special thanks for working hard to get this funding in place. Constituents should thank all appropriators for the positive outcome -- even if, as in the case of Rep. Frank Wolf (R.-Va.), opposition to saving the trains had been apparent.

The omnibus bill does not include the half cent and the Amtrak authorization. Look for Congress to take them up next year.

[Continues with text from #949 of September 27.]