Hotline #207 - September 7, 2001

House Transportation and Infrastructure Chairman Don Young (R.-Alaska) plans next week to introduce a big, new, rail-funding bill, according to today's Washington Post.

This would be a ten-year bill with $36 billion in bonds for high-speed rail "with a sustained cruising speed of at least 125 mph," and $35 billion in direct loans or loan guarantees for both freight and high-speed passenger projects. This is far more rail money than has been made available before, and, if it's all allocated, would provide more in a year than transit gets now (much less than aviation and highways, but still progress).

Where the $12-billion High Speed Rail Investment Act (HSRIA) features non-interest-bearing bonds with federal tax credits for buyers and a 20% state match that goes into an escrow account to pay off the bonds later, the new bill would feature bonds issued by states that are exempt from federal tax, with the interest paid by the state. The U.S. Department of Transportation would approve projects before states issue bonds.

Where under HSRIA Amtrak issues the bonds (and the DOT selects routes under the House version), the new bill cuts Amtrak out of the process. This likely is an attempt to satisfy Amtrak critics who believe its problems are due to mismanagement, rather than chronic, deep, long-term lack of funding.

The 125-mph limit would disqualify some projects that are farthest along in the planning process, such as the in the Midwest and Southeast. Bill supporters believe that only 125-mph running, with the expense of eliminating all grade crossings, is the only way that a new rail service can meaningfully compete with highways and airports (certainly, 125-mph running doesn't hurt). Yet in places that have made more modest infrastructure improvements, such as California's Capitol Corridor and Pacific Northwest, ridership has roughly tripled since the early 1990's. The top speed there is still only 79 mph, with more improvements planned.

The political impact of having a second, very different version of a rail bond bill in the few remaining weeks of this Congressional session is not clear. Support in the House for the HSRIA is growing -- eight more sponsors were added this week, for a total of 178 -- and it would be a shame if the potential distraction of having two different bills led to no bill passing at all. The best outcome would be for leaders to find a way to make the best features of both bills law, and soon.

South Carolina took a step forward this week with the announcement that the state Department of Transportation is participating in a feasibility study of Charlotte-Atlanta high-speed rail service. That corridor segment is part of the federally designated Southeast Corridor and would be eligible for federal matching funds through the High Speed Rail Investment Act (HSRIA) -- should it become law. U.S. Rep. Jim DeMint (R.), who is not yet a sponsor of HSRIA, said that Upstate South Carolina needs alternatives to highway and air travel, and worked to secure $200,000 in federal funds for the study.

North Carolina is contributing $25,000, South Carolina $75,000, and Georgia $100,000. The study will begin in October and may finish in April 2002. The announcement was made at the offices of the Greater Greenville (S.C.) Chamber of Commerce. The chamber is a member of the Southeastern Economic Alliance, a group of 13 chambers of commerce that has supported HSRIA.

The Washington-Richmond-Raleigh-Charlotte segment has already been the focus of study and hearings (see last week's message). That segment, along with Charlotte-Atlanta, is part of a rapidly growing chain of cities and developed areas that is ripe for enhanced passenger rail service. Such a service that also tied into main airports in the corridor would be a winner.

Big service changes may be coming to Amtrak trains running between Chicago and the East Coast, but no announcement has been made to clarify what they may be. The Three Rivers will lose its Heritage sleeper (last trip westbound October 1, eastbound October 2), to be replaced by a Viewliner sleeper. However, Viewliners are in short supply, and Amtrak has not yet said what train, if any, will lose a sleeper in favor of the Three Rivers. Amtrak is eager to keep some sleeper service on the Three Rivers because it is the last train of the day eastbound out of Chicago, making it an attractive connection for trains from the West Coast that are often late, and that have had their schedules lengthened in recent years.

Amtrak is offering Guest Rewards members an Acela Express discount through November 9. Any member booking two round-trips (or four one-way tickets) can get a third for free. Meanwhile, the last day for the weekend-only, two-for-one Acela Express offer is September 23, open to Guest Rewards members and non-members alike.

Some train service in Oregon will be impacted by a track work program that Union Pacific is conducting this month. On weekdays for the rest of September, buses will replace northbound train 552 and southbound train 755 between Eugene and Portland only. No other trains (and no trains on weekends) will be affected.

The northbound Texas Eagle has been subject to rerouting north of Springfield, Ill., on weekdays all this summer due to track work, and this will continue the rest of this month. Additionally, train 304, the northbound Ann Rutledge, on weekdays this month will leave St. Louis a half-hour later than normal, at 2:35 pm, in order to provide a bigger work window for track crews. If the train can make up time, its departure from stations north of St. Louis could be less than 30 minutes late.

Portland, Ore., joins the list of cities with rail transit connections to the airport on September 10, with the opening of a new, 5.5-mile MAX light-rail branch from Gateway Transit Center to the airport. The line will be operated through from downtown, designated as the Red Line. It was built without federal funding by a partnership of the Port of Portland, the Tri-Met transit agency, the City of Portland, the Portland Development Commission, and Bechtel. The various agencies are also coordinating development projects around intermediate light-rail stations.