Hotline #242 - May 10, 2002

Passenger rail supporters turned out for the "Rally for Rail," held in the park between the Senate and Union Station, in Washington, D.C., on May 8. The Rally was organized by several groups, including the American Rail Passenger Coalition, the National Association of Railroad Passengers, the Railway Progress Institute, and the Transportation Trades Department of the AFL-CIO. The event was followed by a series of meetings with Members of Congress and their staff throughout the day.

The main purpose of the event was to present Congress with a resolution, adopted by dozens of organizations, in favor of funding Amtrak at $1.2 billion in 2003, and of a Congressional commitment to long-term funding for Amtrak and for corridor development. Click here for the entire resolution, support list, and news release. We continue to add supporting organizations as we hear from them.

The Railroads Subcommittee of the House Transportation and Infrastructure Committee on May 8 marked-up (approved) two passenger-rail bills that had been pulled from full committee consideration on April 24.

H.R.4545, the one-year Amtrak reauthorization, would allow $1.2 billion for Amtrak in 2003 (but which still needs to be appropriated). A controversial provision in the original bill that required Department of Transportation approval of all Amtrak capital spending -- bringing with it the implication that the Office of Management and Budget would have veto power over capital spending and politicize Amtrak's capital budget -- was removed. Instead, Amtrak must submit quarterly and annual business plans to the Department of Transportation Inspector General, House Transportation and Infrastructure Committee, and Senate Commerce Committee. Also, the General Accounting Office must audit Amtrak's accounting practices.

A Senate counterpart bill, S.1991, was approved by the Senate Commerce Committee on April 18. It goes beyond just authorizing Amtrak for another year on a limp-along basis, by promoting expansion of passenger rail services of all types. But, like H.R.4545, it would depend on the appropriations process.

The other bill approved May 8 was a revamped version of H.R.2950, the Rail Infrastructure Development and Expansion Act, albeit with some aspects (mostly labor-related) yet to be worked out. The new version combines elements of both the older H.R.2950, and H.R.2329, the High Speed Rail Investment Act. The bill provides for $12 billion over ten years for federally tax-exempt bonds for high-speed rail (like the original H.R.2950, at a reduced amount) and $12 billion over ten years for high-speed rail bonds with federal tax credits (like H.R.2329). The new version of the bill, like the original, requires removal of all highway grade crossings and services of at least 125 mph.

The American Association of State Highway and Transportation Officials announced yesterday a proposal for a new federal Transportation Finance Corporation. The group's goal is to increase highway spending by 29% by 2009. The new federal agency would raise nearly $60 billion by selling tax-credit bonds, much like the bonds in the High Speed Rail Investment Act (H.R.2329). After some is set aside for paying bonds back later, $34 billion would go to states for highways, $8.5 billion for transit, and $5 billion for a flexible account that includes all modes, including high-speed rail. One means for offsetting the cost to the federal government would be to tax gasohol at the same rate as conventional gasoline.

Pennsylvania DOT and Amtrak, we understand, have signed an agreement covering the $140-million upgrade of the Keystone Corridor (Philadelphia-Harrisburg). Amtrak is providing half the funding, and Pennsylvania is providing the other half (including a sizeable share from federal funds). A celebration and detailed announcement of the line's five-year capital program is planned for June 11, 11:00 am, at the Harrisburg Transportation Center. The announcement is expected to include early restoration of a daily electric service. All schedules now are based on slower, diesel operation, although electric equipment occasionally runs on an individual train. We hear the five-year plan is to restore the line to all-electric service. Also, about seven miles of the line (but only on one of two tracks, between Middletown and Harrisburg) now are good for 110-mph operation. The plan is to increase that substantially, and reduce today's average, two-hour Harrisburg-Philadelphia running time to 90 minutes.

High-speed rail for California took a step forward May 7 as the State Senate Transportation Committee voted, 8-1, to approve SB 1856. That bill is expected to provide about $6 billion in bond funds to pay for about half the cost of building a Los Angeles-Bay Area trunk line. The rest of the money would be raised in other ways. Branches of the system to San Diego and Sacramento would come later (but presumably would have conventional rail connections in the meantime). The bill still needs approval by two-thirds of the legislature, and then the bonds would have to be approved by voters statewide.

The Georgia Department of Transportation will dedicate all its utility permits fees to intermodal projects, the first time "Georgia DOT has had a dedicated funding source for something other than roads or bridges," according to the May 6 Atlanta Journal-Constitution. Currently, in Georgia (and many other states), motor fuel taxes can only go to more roads. Under the new plan, eligible projects include intercity passenger rail, intermodal terminals (such as that proposed for Atlanta), and transit. The fees generate just $4-5 million a year, but Gov. Roy Barnes called it a "first step."

New Orleans Union Passenger Terminal is in line for a facelift, following a lease termination signed by Mayor Marc Morial on May 3. As a result, the city has full control over a 50-acre parcel that includes the terminal and approach tracks. The city has put the area under the control of the New Orleans Business Corporation, an agency that develops or disposes of city-owned property. The terminal, built in 1954, will be developed into a modern intermodal transportation center. Of the $6.5 million cost of the project, Amtrak will contribute $2 million.

Amtrak has a promotion increasing the Guest Rewards bonus points available on Acela Express. Through June 30, travelers can get 10,000 points for three round trips in Business Class, or 15,000 points for three round trips in First Class. The offer is good for travel between the metropolitan areas of Boston, New York, and Washington (not most intermediate stations).

The Senate Environment and Public Works Committee will hold a hearing on Transportation Planning and Smart Growth on May 15 (10:00 am, 406 Dirksen Building). Witnesses are to include rail transit opponent and Amtrak Reform Council member Wendell Cox, Tom Downs of the University of Maryland (and former Amtrak president), and Judith Espinosa, board member of the Surface Transportation Policy Project.