    [Senate Hearing 115-873]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 115-873

                         NOMINATION TO THE AMTRAK BOARD
               OF DIRECTORS AND THE SURFACE TRANSPORTATION BOARD

    =======================================================================

                                    HEARING

                                   BEFORE THE

                             COMMITTEE ON COMMERCE,
                          SCIENCE, AND TRANSPORTATION
                              UNITED STATES SENATE

                         ONE HUNDRED FIFTEENTH CONGRESS

                                 SECOND SESSION
                                   __________

                                 JULY 26, 2018
                                   __________

        Printed for the use of the Committee on Commerce, Science, and
                                 Transportation

                      [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

                    Available online: http://www.govinfo.gov

                                   __________

                        U.S. GOVERNMENT PUBLISHING OFFICE

    54-981 PDF                 WASHINGTON : 2024

           SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                         ONE HUNDRED FIFTEENTH CONGRESS

                                 SECOND SESSION

                       JOHN THUNE, South Dakota, Chairman
    ROGER WICKER, Mississippi            BILL NELSON, Florida, Ranking
    ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
    TED CRUZ, Texas                      AMY KLOBUCHAR, Minnesota
    DEB FISCHER, Nebraska                RICHARD BLUMENTHAL, Connecticut
    JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii
    DAN SULLIVAN, Alaska                 EDWARD MARKEY, Massachusetts
    DEAN HELLER, Nevada                  TOM UDALL, New Mexico
    JAMES INHOFE, Oklahoma               GARY PETERS, Michigan
    MIKE LEE, Utah                       TAMMY BALDWIN, Wisconsin
    RON JOHNSON, Wisconsin               TAMMY DUCKWORTH, Illinois
    SHELLEY MOORE CAPITO, West Virginia  MAGGIE HASSAN, New Hampshire
    CORY GARDNER, Colorado               CATHERINE CORTEZ MASTO, Nevada
    TODD YOUNG, Indiana                  JON TESTER, Montana
                           Nick Rossi, Staff Director
                     Adrian Arnakis, Deputy Staff Director
                        Jason Van Beek, General Counsel
                     Kim Lipsky, Democratic Staff Director
                  Chris Day, Democratic Deputy Staff Director
                          Renae Black, Senior Counsel

                                C O N T E N T S

                                  ----------
                                                                       Page
    Hearing held on July 26, 2018....................................     1
    Statement of Senator Wicker......................................     1
    Statement of Senator Inhofe......................................     2
    Statement of Senator Nelson......................................     7
        Prepared statement...........................................     7
    Statement of Senator Fischer.....................................    28
    Statement of Senator Tester......................................    30
    Statement of Senator Peters......................................    34
    Statement of Senator Cortez Masto................................    36
    Statement of Senator Blumenthal..................................    38
    Statement of Senator Baldwin.....................................    41
    Statement of Senator Duckworth...................................    42
        Report of the Amtrak Chicago Gateway Blue Ribbon Panel dated
          October 2015...............................................    44
    Statement of Senator Udall.......................................    74
    Statement of Senator Markey......................................    76
    Statement of Senator Thune.......................................    78

                                   Witnesses

    Hon. Richard C. Shelby, U.S. Senator from Alabama................     3
    Hon. Mike Quigley, U.S. Representative from Illinois.............     4
    Hon. Dan Lipinski, U.S. Representative from Illinois.............     5
    Rick A. Dearborn, Nominee to be a Director, Amtrak Board of
      Directors......................................................     7
        Prepared statement...........................................     9
        Biographical information.....................................    11
    Martin J. Oberman, Nominee to be a Member, Surface Transportation
      Board..........................................................    16
        Prepared statement...........................................    18
        Biographical information.....................................    19

                                    Appendix

    Support letter for Rick Dearborn dated June 30, 2018 to Hon. John
      Thune and Hon. Bill Nelson from James Lankford, U.S. Senator
      from Oklahoma..................................................    83
    Support letter for Rick Dearborn dated July 30, 2018 to Hon. John
      Thune and Hon. Bill Nelson from Richard Shelby, U.S. Senator
      from Alabama...................................................    84
    Support letter for Rick Dearborn dated July 30, 2018 to Hon. John
      Thune and Hon. Bill Nelson from James M. Inhofe, U.S. Senator
      from Oklahoma..................................................    85
    Support letter for Rick Dearborn dated July 30, 2018 to Hon. John
      Thune and Hon. Bill Nelson from Doug Jones, U.S. Senator from
      Alabama........................................................    86
    Support letter for Rick Dearborn dated July 30, 2018 to Hon. John
      Thune and Hon. Bill Nelson from Members of Congress: Robert
      Aderholt, Mike Rogers, Mo Brooks, Martha Roby, Terri Sewell,
      Bradley Byrne and Gary Palmer..................................    87
    Support letter for Martin Oberman dated July 31, 2018 to Senators
      John Thune, Bill Nelson, Deb Fischer, and Gary Peters from Ann
      Warner, Spokeperson, Freight Rail Customer Alliance............    89
    Response to written question submitted to Rick A. Dearborn by:
        Hon. Bill Nelson.............................................    91
        Hon. Maria Cantwell..........................................    91
        Hon. Amy Klobuchar...........................................    92
        Hon. Richard Blumenthal......................................    93
        Hon. Catherine Cortez Masto..................................    94
        Hon. Jon Tester..............................................    94
    Response to written questions submitted to Martin J. Oberman by:
        Hon. Dean Heller.............................................    95
        Hon. Amy Klobuchar...........................................    96
        Hon. Catherine Cortez Masto..................................    96

                         NOMINATION TO THE AMTRAK BOARD
               OF DIRECTORS AND THE SURFACE TRANSPORTATION BOARD

                                  ----------

                            THURSDAY, JULY 26, 2018

                                           U.S. Senate,
            Committee on Commerce, Science, and Transportation,
                                                        Washington, DC.
        The Committee met, pursuant to notice, at 10 a.m. in room
    SR-253, Russell Senate Office Building, Hon. Roger Wicker,
    presiding.
        Present: Senators Wicker [presiding], Thune, Inhofe, Blunt,
    Moran, Fischer, Nelson, Cantwell, Klobuchar, Tester, Udall,
    Blumenthal, Baldwin, Markey, Peters, Duckworth, Hassan, and
    Cortez Masto.

                OPENING STATEMENT OF HON. ROGER WICKER,
                     U.S. SENATOR FROM MISSISSIPPI

        Senator Wicker. This hearing will come to order. And we
    have word from Senator Nelson that he will be right along and
    that he would be pleased if we went ahead. So we'll do that in
    the interest of time. And we appreciate everyone's attendance.
        I want to thank our nominees, Rick Dearborn and Marty
    Oberman, for being here, and for your willingness to serve in
    these important positions. Thank you.
        Rick Dearborn has had an impressive career in public policy
    that spans more than 24 years. He's held leadership roles with
    the Trump and Bush administrations. He has also been a staff
    member for six Senators--can't hold a job----
        [Laughter.]
        Senator Wicker.--most recently serving as Chief of Staff
    and State Director for Jeff Sessions. After the 2016 election,
    Mr. Dearborn served as the Executive Director of President
    Trump's Presidential Transition Team, and was the President's
    Deputy Chief of Staff from January 2017 until March 2018.
        The Amtrak Board of Directors is comprised of ten
    individuals: they include eight Senate-confirmed appointees,
    and the Secretary of Transportation, and the President of
    Amtrak. There are currently two vacancies on the Board. Mr.
    Dearborn has been nominated to replace Board member Jeffrey
    Moreland, whose term expired in 2015.
        Mr. Dearborn, we are very anxious to fill these vacancies.
    If confirmed, I know your vast experience in public policy will
    be crucial as you work with fellow Board members on issues like
    long distance service, positive train control, Gateway, and the
    restoration of Gulf Coast rail, which is of particular interest
    to some of us in the room.
        Our second nominee, Mr. Marty Oberman, has been nominated
    to serve as a Member of the Surface Transportation Board. Mr.
    Oberman has spent the past 49 years of his career as an
    attorney. His practice focuses on complex civil litigation
    spanning medical and legal malpractice, commercial disputes,
    local taxation, constitutional rights, civil rights, and
    financial crimes.
        Apart from his distinguished legal career, Mr. Oberman has
    spent significant time in public service. Most recently, he
    served as Chairman of Metra, a commuter railroad in the Chicago
    metropolitan area that serves more than 100 communities with
    241 stations and 11 lines. In this capacity, he led the
    formulation and adoption of a 10-year capital program totaling
    over $2 billion to revitalize and renew Metra's rail cars and
    locomotives.
        Mr. Oberman has been nominated to fill one of the three
    vacancies on the Surface Transportation Board. As a Board
    member, he will help resolve railroad rate and service disputes
    and review proposed railroad mergers. Filling these vacancies
    is vital to ensuring that the Board has the staff and
    experience for these responsibilities.
        Mr. Oberman, if you are confirmed, I am sure that your
    diverse legal background and leadership within Metra will serve
    you well in your position as a Board member.
        Again, thank you both for your willingness to serve.
        I am standing in for Chairman Thune, who we hope will be
    here in a few moments. And when Senator Nelson arrives, he will
    be recognized to make whatever opening statement he chooses.
        At this point, Senator Inhofe, I'm scheduled to recognize
    you for a 2-minute statement of behalf of Rick Dearborn. So you
    are recognized with the Committee.

                     STATEMENT OF HON. JIM INHOFE,
                       U.S. SENATOR FROM OKLAHOMA

        Senator Inhofe. And you adhere to two minutes. Is that it?
        Senator Wicker. I'm just reading what they say.
        [Laughter.]
        Senator Inhofe. All right. No, the thing is I know this guy
    really well, and it's kind of my pleasure to introduce him. And
    I think it's kind of poetic justice here, that this guy, he has
    been a railroad freak since he has been a little kid, and to
    have him end up in a position like this, I mean, he's--and I
    have no doubt in my mind that we'll do everything necessary to
    get him confirmed, and he will have died and gone to heaven to
    be in this kind of a position.
        So as a kid in Waynoka, Oklahoma, he used to go down to the
    railroad every summer evening, and he'd put a penny to be
    flattened on the tracks, and if he was lucky, he'd catch a cold
    carton that they would send him because all the railroad people
    all liked him.
        While attending the University of Oklahoma, Rick found a
    job working in a train yard in Oklahoma City loading cars,
    celebrities and citations mostly, three levels high into
    railcars with 100 degrees heat. We get pretty hot out there.
    Throughout his 20-year career working on Capitol Hill and in
    Washington, D.C., trains were never far from his mind or his
    home.
        He's an avid collector of model trains. In fact, I thought
    when I was talking to him some time ago that my kids, when they
    were little, had the biggest model train thing. I remember we
    lowered it from the ceiling down to the garage, but it wasn't
    16 by 30 feet like yours was.
        Working on Capitol Hill, he took a keen interest in
    passenger rail in addition to being an avid personal rider on
    the Amtrak and all of that. I chaired the Environment and
    Public Works Committee when we went through T21 safety, MAP-21,
    the FAST Act, and all of that, and Rick was always there
    talking about trains, even though that wasn't our jurisdiction.
        He has always known trains personally and professionally,
    and he knows how they operate and the infrastructure necessary
    to keep them operating, and I believe that Rick Dearborn's
    personal passion for trains and his professional experience
    working rail issues make him the ideal candidate to serve on
    the Amtrak Board of Directors. And I look forward to his
    testimony today.
        Thank you, Mr. Chairman.
        Senator Wicker. That was an excellently timed statement,
    Senator Inhofe.
        Senator Inhofe. I know. It's one of the few things I'm good
    at.
        Senator Wicker. We're delighted to have the distinguished
    Chairman of the Senate Appropriations Committee with us today,
    who has humbled himself and agreed to testify before our
    Committee.
        [Laughter.]
        Senator Wicker. Richard, what do you know about Rick
    Dearborn that you'd like to tell?

                   STATEMENT OF HON. RICHARD SHELBY,
                       U.S. SENATOR FROM ALABAMA

        Senator Shelby. I know a lot about him, and I want to pick
    up after what Senator Inhofe said.
        You know, you wonder why I'm here today. I'm here because
    Rick Dearborn married well. His wife is from Alabama, and she's
    one of my former staffers. You know, I had to be here for her,
    but also for him.
        I've known Rick 20 years. He worked, as you know, with
    Senator Sessions as his Legislative Director, his Chief of
    Staff. He worked for President George W. Bush as Assistant
    Secretary of Energy for Congressional Affairs. He was involved
    in the Trump campaign. He worked at the White House after he
    left Sessions as a Deputy Chief of Staff. He's now in the
    private sector, and I think his wife will be happy for that in
    many ways.
        But Rick brings a lot to the table: experience here on
    Capitol Hill, experience at the White House, experience in
    life. He loves trains. And I'm going to tell him right now in
    front of all of you, I want him to bring the whole Amtrak Board
    and Oklahoma football team to the University of Alabama to play
    when Oklahoma is not very good, you know. And he hasn't
    promised to do that yet, but he's an alumnus of the University
    of Oklahoma, and I am here on his behalf without reservation. I
    think this will be a big positive dimension for him.
        Thank you, Mr. Chairman.
        Senator Wicker. Thank you, Senator Shelby.
        Senator Nelson. Mr. Chairman, may I ask Senator Shelby a
    question?
        Senator Wicker. If it's a piercing question, yes.
        Senator Shelby. Am I under oath?
        [Laughter.]
        Senator Wicker. Go ahead, Bill.
        Senator Nelson. Senator Shelby, how long did it take you in
    number of years in the Senate to become Chairman of
    Appropriations?
        Senator Shelby. Why, I've been here about six months.
        [Laughter.]
        Senator Shelby. Bill, it takes a long time. I remember when
    I went on the Committee, some of the people that are on the
    Committee are here, and Senator Byrd was Chairman and Senator
    Stevens was Ranking, and then it flipped, and then Senator
    Inouye, you know, and all. And they told me, said--I was a
    junior member--said, ``Senator Shelby, you're going to be
    Chairman someday.'' I started to say, ``Yes, when?'' You know?
    Because they last a long time. I hope I last a few years.
        Senator Nelson. That day finally has arrived.
    Congratulations!
        Senator Shelby. Thank you. Thank you.
        Thank you, Mr. Chairman.
        Senator Wicker. And I think we can agree that Senator
    Shelby and Senator Leahy are off to a great bipartisan start in
    moving our bills along.
        We also have two very distinguished Members of the House of
    Representatives from the State of Illinois here to tell us what
    they might know about Marty Oberman.
        So Congressman Mike Quigley, you are recognized first. And
    then we will move directly from there to Congressman Dan
    Lipinski.
        You are recognized, sir.

                    STATEMENT OF HON. MIKE QUIGLEY,
                   U.S. REPRESENTATIVE FROM ILLINOIS

        Mr. Quigley. Thank you, Chairman. I really appreciate it,
    and I appreciate the Committee having me today. It's an honor
    to be--an honor to be here today introducing Martin Oberman.
        This may be a clumsy way to say it. Chicago has a well-
    earned reputation for certain things. Martin Oberman has a
    well-earned reputation fighting against some of Chicago's well-
    earned reputation.
        [Laughter.]
        Mr. Quigley. It is an honor to introduce a man with a
    nuanced and detailed understanding of the American
    transportation system, honed by decades of experience in the
    public and private sector, and he would make a fantastic
    addition to the Surface Transportation Board.
        He graduated from Yale University and the University of
    Wisconsin. Apparently, he couldn't get into any colleges in
    Chicago, but he made do. He is a Chicagoan, though, and, in
    fact, he's a constituent of mine, as he served as a very well-
    respected alderman representing Chicago's 43rd Ward from 1975
    to 1987. More recently, he served as one of the most popular
    and well-respected Members of the Board of Metra, the Chicago
    area commuter rail system that operates 750 trains per day and
    one of the most complex and congested rail systems in the
    world.
        In 2014, he was asked to serve as the Chairman of Metra
    Board, something he did ably for two years. As Chairman, he not
    only definitely navigated the relationship between Class I
    freight, Amtrak, and passenger rail, coming to understand the
    capital investment needed to keep our country's rail system
    functioning properly, but he also led Metra in formulating and
    adopting a 10-year, $2 billion capital investment program to
    renew Metra's rolling stock and improve service and
    reliability, something that had never been done before at the
    agency.
        If you really want a good sense of Marty's judgment and
    character, he was chosen to lead Metra following two major
    scandals in the year before his chairmanship. He was tasked
    with stabilizing the agency and operating with integrity,
    efficiency, and transparency, something he was very successful
    in doing, all three traits he would bring to the Surface
    Transportation Board.
        I'm also pleased to also introduce Marty's wife, Bonnie,
    who shares with him his love of the arts in Chicago. And I know
    she will support him with his new work at the STB.
        This Committee has some tough decisions on some nominees in
    the past. I don't believe this is a tough decision. He would
    make an extraordinary Member of the STB. And I urge you to
    confirm his nomination.
        Senator Wicker. Thank you very much, Representative
    Quigley.
        Representative Lipinski.

                    STATEMENT OF HON. DAN LIPINSKI,
                   U.S. REPRESENTATIVE FROM ILLINOIS

        Mr. Lipinski. Thank you, Mr. Chairman. It's an honor to be
    here today, and I appreciate the opportunity to appear before
    you today to introduce Martin J. Oberman to be Nominee to serve
    on the Surface Transportation Board.
        I've known Marty Oberman for about four decades now. He was
    first elected to serve on the Chicago City Council as an
    alderman in 1975. The same year that my father, former
    Congressman Bill Lipinski, was elected to the Council. And I
    don't think anyone would have ever expected that the lakefront
    liberalist, they're called in Chicago, the former Marty
    Oberman, would work so closely with the southwest side
    conservative machine politician, Bill Lipinski.
        [Laughter.]
        Mr. Lipinski. But the fact that Marty did says a lot about
    him and about my father. It says Marty is committed to being a
    real public servant, willing to work across differences to get
    things done. It also says much about him as a first-class human
    being. And to attest to the latter point here today, we have
    with us Marty's wife, Bonnie, and I understand, although I ran
    in here very quickly, that his son, Justin, his daughter,
    Maren, with a granddaughter, is also here.
        Marty Oberman's prior service prepared him well for the
    responsibilities he would assume at the STB. As a senior member
    of the House Transportation Committee, Subcommittee on
    Railroads, I know Marty best from having worked with him in his
    role as Chairman of the Board of Metra--the second largest
    commuter railroad in the country. This experience has given him
    a comprehensive understanding of not just what it takes to run
    a railroad, but also the relationships a railroad maintains
    with its customers, its needs to plan and make capital
    investments, and the importance of collaboration between public
    and freight railroads. And this has all been learned and
    practiced operating a railroad in Chicagoland, the very
    congested hub of the Nation's rail network.
        Not just from me, but from others in the community, Marty
    gets high marks for working to improve Metra's service and
    operations during his tenure. This was made possible through
    his commitment to learn, be considerate of other's knowledge,
    and appreciate the various perspectives of the stakeholders
    involved in running something as complex as a commuter railroad
    in Chicago.
        As a former Alderman in Chicago, it's also important to
    highlight Marty's respect for legislative bodies. I have full
    faith based on my experience working with him that he listens,
    is responsive, and follows through in a way that facilitates
    strong agency legislature relations. I'm sure you all know how
    important that is, and I think it will be very useful in
    helping implement the 2015 STB Reauthorization Act.
        Ultimately, I know that Marty Oberman will bring a strong,
    smart approach as well as a fresh and open perspective to the
    STB. His constructive and fair mentality to public service will
    serve all the vested stakeholders well and ensure the agency
    continues to fulfill its mandate to effectively oversee
    railroads and resolve disputes when they occur.
        I'd like to thank the Committee for this opportunity and
    for your fair consideration of Marty Oberman's nomination to
    the Surface Transportation Board.
        Thank you.
        Senator Wicker. Well, the Committee wishes to thank both of
    you for your testimony. And if I were you, I think I would just
    take a seat here in the room, and we will keep you out of
    trouble for the rest of the day.
        [Laughter.]
        Senator Wicker. But it may be that you might want to get
    back to the other side of the Hill. So that's your choice, but
    you are excused with the appreciation of the Committee.
        Mr. Lipinski. Thank you.
        Senator Wicker. Thank you. Come see us again.
        It's now my privilege to recognize the distinguished
    Ranking Member of the Committee, Senator Nelson, for his
    opening statement.

                    STATEMENT OF HON. BILL NELSON,
                       U.S. SENATOR FROM FLORIDA

        Senator Nelson. Mr. Chairman, in the interest of time, I
    will insert it in the record, and so we can get right on with
    the witnesses.
        [The prepared statement of Senator Nelson follows:]

       Prepared Statement of Hon. Bill Nelson, U.S. Senator from Florida
        We have two nominees before the committee today who have been
    nominated for positions at critical transportation organizations--the
    Surface Transportation Board and the Amtrak Board of Directors.
        Both these nominees may eventually deal with an issue that is
    critically important to my home state. Florida is still working to
    restore the Amtrak service along the Gulf Coast that was shut down
    after Hurricane Katrina. This line serviced two million people from
    Florida to Louisiana and has an impact on our tourism industry. I look
    forward to hearing their views on restoring the Gulf Coast rail
    service.
        Another important issue is positive train control implementation.
    It is critical that we do everything we need to make sure that
    railroads are on track to meet the 2018 deadline. I hope to hear Mr.
    Dearborn's views today on Amtrak's progress.
        I look forward to hearing from our two witnesses today, but first I
    must address a critical matter that falls within the purview of this
    committee.
        One of the most important issues this committee oversees is
    transportation security, which is jeopardized by the recent decision by
    the Department of Justice and the State Department to settle a three-
    year-long legal battle to prevent the publication of blueprints on how
    to make 3D printed guns, including AR-15s, online for the public to
    download.
        The administration's decision paves the way for the publication of
    these blueprints online on August 1--just a week from today. Once those
    blueprints are posted on the Internet, it'll be impossible to pull them
    back.
        We can't overstate the danger presented by 3D printed guns, many of
    which may evade detection by our current security screening systems.
        Let me be blunt about this: Somebody could come into this
    building--and sit in this hearing room--and have a gun, and we wouldn't
    know about it. People could walk onto airplanes and have plastic guns--
    and we wouldn't know about it.
        We talk about ``hardening'' schools, ``hardening'' airports,
    ``hardening'' public spaces--but all of that is meaningless if a
    deranged individual can get past the metal detectors with a plastic
    gun.
        If this settlement is allowed to go through, we will see a
    fundamental shift in American safety and security.
        Mr. Chairman, I ask that this committee immediately hold a hearing
    on this issue. We should hear directly from the TSA on the dangers
    posed by 3D-printed plastic guns at airports and on aviation security
    generally. Time is of the essence.
        And with that, I conclude my remarks for today's hearing.

        Senator Wicker. Thank you very much.
        If our nominees will step forward and make sure the mics
    are on, we will get started.
        Gentlemen, thank you so much for being here. We hope you
    can live up to your introductions. And we will--we'll stick--
    we'll start with Mr. Rick Dearborn.
        You are recognized, sir, for--to summarize your testimony
    for 5 minutes. Glad to have you with us.

    STATEMENT OF RICK A. DEARBORN, NOMINEE TO BE A DIRECTOR, AMTRAK
                           BOARD OF DIRECTORS

        Mr. Dearborn. I think it's on. There we go.
        Thank you, Senator.
        To Chairman Thune, Ranking Member Nelson, Senator Wicker,
    and the members of the Committee, it's a pleasure to be here
    testifying before you today. I would also like to thank
    Senators Inhofe and Shelby for introducing me to the Committee
    this morning.
        My name is Rick Dearborn, and it's truly an honor to have
    been nominated by the President to serve on the Amtrak Board of
    Directors. As you know, I was raised and grew up in Oklahoma;
    however, I've had the pleasure to work on behalf of the people
    of Alabama for the last 20 years here in Washington, D.C. None
    of this would have been possible without the love and support
    of my wife, Gina, who was supposed to be here today, but
    because of Murphy's Law, had a transportation glitch, and her
    flight was canceled.
        From an early age, I was fascinated with trains and
    railroads. For many years as a kid, my sisters and I used to
    spend several weeks every summer with my grandparents up near
    the Panhandle of Oklahoma in Waynoka. My friends and I would
    ride our bikes and visit the railroad tracks near the depot
    waiting on the trains to come down the tracks, as Senator
    Inhofe alluded to. The passengers were long gone, but the Santa
    Fe still came through a few times a day. We'd race down to
    those tracks, place pennies on them, we'd see the wheels
    flatten those pennies, and wait for small cartons of milk to be
    tossed off the back of the caboose, the coldest milk you ever
    had. We'd all hurry home for supper, and it was truly an
    idyllic place to grow up in a rural state.
        Later in my life, I got a college job loading cars onto the
    railroad cars as a Teamster at the Oklahoma City Chevrolet
    plant. We loaded celebrities and citations on seven tracks of
    rail in 100-degree heat. It was the hardest job I ever had.
    Later, I moved into the car plant as a member of the UAW union
    working on the assembly line.
        Growing up, I collected toy trains with my dad. I had a--I
    still today have a sizable collection, nearly 75 locomotives
    and well over 300 rolling stock. I'm passionate about trains
    and the issues--sorry. I'm passionate about trains and
    railroading, and I'm very excited about this opportunity. It's
    truly in my DNA.
        Professionally, I am currently a consultant providing
    corporate clients with strategic guidance. Most recently, I
    served in the Trump Administration and the transition team, and
    in the Administration for 15 months. However, the U.S. Senate
    is where I served the bulk of my career.
        For more than 20 years, I proudly served as a staffer in
    various roles for this institution's members. I served as the
    Legislative Director for then-Senator Jeff Sessions, of
    Alabama, later having served for over 12 years as his Chief of
    Staff.
        During that time, he served on the EPW Committee, and we
    worked on various surface transportation reauthorization bills,
    from ISTEA to the FAST Act. Passenger rail issues were part of
    our yearly routine, and our office worked on rail issues on
    behalf of our constituents and our country.
        Though Amtrak wasn't rolled into the larger bill until the
    FAST Act of 2015, passenger rail issues were something we dealt
    with annually and did--as did most rural State offices with
    long distance routes.
        I've also been an avid rider of the Nation's railways. I've
    traveled the Northeast Corridor between Washington, D.C., and
    New York many times, a few trips to Philly, Boston, and south
    to Roanoke, and I've also had a chance to take the Cardinal
    into West Virginia.
        If confirmed to the Board, I will conduct myself as a
    responsible steward of the American public's investment on our
    passenger rail system. I'll have direct responsibility to
    monitor the leadership's financial management and operational
    decisions, staying up-to-date on best practices, and management
    and accounting throughout the rail industry.
        If confirmed, high priorities of mine will be the
    completion of the positive train control system, the adoption
    of the safety management system that the new leadership team
    has recently initiated. I also realize the Board plays a key
    role in hiring the right executives and reviewing their
    performance.
        If confirmed, I would concentrate on the key priorities I
    believe Amtrak must focus on to be successful and remain a
    vibrant mode of transportation throughout the Nation: the
    safety of its passengers, increasing its ridership as a
    competitive, convenient, clean, and comfortable mode of
    transportation, and the need to make smart capital investments
    in existing infrastructure, also looking to reduce and
    ultimately eliminate Amtrak's debt.
        Amtrak's focus on safety must be its top priority. Its
    record must improve. I was encouraged by Amtrak's recent hire
    of a new Executive Vice President of Safety reporting directly
    to the CEO. Its goal should be to be in full compliance with
    PTC requirements, conditions, and schedules by the year-end
    deadline.
        As for success through increasing its ridership, Amtrak
    should provide a service that people want to utilize. It needs
    to be on time, it needs to be clean, it needs to be
    competitive, and a good option for all travelers with other
    transportation modes. There are a lot of growth opportunities
    in short distance corridors, where Amtrak can work with their
    State partners to evaluate ridership and interest.
        Finally, smart capital investment is needed, investment in
    aging infrastructure, some of which dates back to the Civil War
    era.
        I want to thank the President for nominating me. I'm
    excited about the future of passenger rail in our country. And
    if confirmed, I'd be committed to working with my colleagues on
    the Board, the management of the company, the administration,
    and everyone here in Congress to ensure Amtrak is managed as
    safely, efficiently, and responsibly as possible.
        Thank you for your consideration of my nomination, and I
    look forward to your questions.
        [The prepared statement and biographical information of Mr.
    Dearborn follow:]

       Prepared Statement of Rick A. Dearborn, Nominee to be a Director,
                           Amtrak Board of Directors
        Chairman Thune, Ranking Member Nelson, Senator Wicker, and members
    of the Committee, it's a pleasure to be here testifying before you
    today. I'd also like to thank Senators Inhofe and Shelby for
    introducing me to the Committee this morning.
        My name is Rick Dearborn and it is truly an honor to have been
    nominated by the President to serve on the Amtrak Board of Directors.
    As you know, I was raised and grew up in Oklahoma. However, I've had
    the pleasure to work on behalf of the people of Alabama for twenty
    years here in Washington, D.C. None of this would have been possible
    without the love and support of my wife, Gina, who is here with me
    today.
        From an early age, I was fascinated with trains and railroads. For
    many years as a kid, my sisters and I used to spend several weeks every
    summer with my grandparents up near the Panhandle of Oklahoma, in
    Waynoka.
        According to the Waynoka Historical Society, ``Colonel Charles
    Lindbergh chose Waynoka, Oklahoma for the location of an airport on the
    Transcontinental Air Transport (TAT) air-rail route between New York
    and Los Angeles.
        Starting in 1929, TAT offered 48-hour coast-to-coast passenger
    transport utilizing not only its own Ford Trimotor aircraft, but also
    the sleeper services of the Pennsylvania Railroad and the Santa Fe
    Railroad for the two overnight segments of the long trip.
        Waynoka was the point at which passengers transferred from the TAT
    plane to the Santa Fe train (going westbound), or from the Santa Fe
    train to the TAT plane (going eastbound). Amelia Earhart also came to
    Waynoka by the TAT . . . [today,] the BNSF main line from Chicago to
    the West Coast which passes the Waynoka depot is Oklahoma's busiest
    rail line.''
        Waynoka in those days had a population of around 1,200 to 1,500
    folks, though it felt even smaller. My friends and I would ride our
    bikes and explore the 1,600 acres of sand dunes at the Little Sahara
    State Park and almost every day we would bike down to the railroad
    tracks near the depot, waiting on the train to come down the tracks.
    The passengers were long gone, but the Santa Fe still came through a
    few times a day.
        We would race down to those tracks, place pennies on them to get
    flattened by the wheels of the train and wait for the conductor to toss
    down small cartons of the coldest milk you ever drank off the back of
    the caboose. We would all then race back home in time for supper. It
    was truly an idyllic place and a great way to grow up in a rural state.
        Later in my life, I got a college job loading cars onto railroad
    cars as a Teamster at the Oklahoma City Chevrolet plant. We loaded
    Celebrities and Citations on seven tracks of rail in 100-degree heat
    and it was the hardest job I ever had. Later, I moved into the car
    plant as a member of the UAW union working on the Assembly line.
        Growing up I collected toy trains with my Dad. For the past thirty
    years I've collected and operated O gauge model toy trains. By all
    accounts I have amassed a sizable model train collection of nearly 75
    locomotives and well over 300 rolling stock. I am a current member of
    the Train Collector's Association and have been since 1999.
        In the past, I built my own thirty-foot by sixteen-foot platform, a
    full wiring system and control panel and multiple running lines of
    operation. I remain hopeful in the months to come I can build out
    another platform in my small single car garage here in our Virginia
    home.
        Professionally, I am currently a consultant providing my corporate
    clients with strategic guidance. Most recently, I served on the Trump
    transition team and in the Trump Administration for 15 months. However,
    the United States Senate is where I served the bulk of my career.
        For more than 20 years, I proudly served as a staffer in various
    roles for this institution's Members. I served as a Legislative
    Director for then-Senator Jeff Sessions of Alabama, later having served
    for over twelve years as his Chief of Staff.
        During that time, he served on the EPW Committee and the
    Transportation Subcommittee. We worked on various surface
    transportation reauthorization bills, from ISTEA through the FAST Act.
    Passenger rail issues were part of our yearly routine. Our office
    worked rail issues on behalf of our constituents and our country.
    Though Amtrak wasn't rolled into the larger transportation bill until
    the FAST Act of 2015, passenger rail issues were something we dealt
    with annually, as did most rural state offices with long distance
    routes.
        I have also been an avid rider on our Nation's railways. I have
    travelled the Northeast Corridor between Washington, D.C. and New York
    many times, and a few trips to Philly, Boston, and south to Roanoke.
    I've also had the chance to take the Cardinal into West Virginia.
        If confirmed to the Amtrak Board, I will conduct myself as a
    responsible steward of the American public's investment in our
    passenger rail system.
        I will have a direct responsibility to monitor the executive
    leadership's financial, management and operational decisions, staying
    up to date on the best practices relating to all management and
    accounting standards throughout the rail industry. I would work to
    incorporate those best practices standards during my term.
        If confirmed, a high priority of mine would be paying particular
    focus on the Positive Train Control (PTC) system and learn more about
    the Safety Management System (SMS) that the new Leadership team has
    recently initiated. I also realize the Board plays a key role in hiring
    the right executives and reviewing their performance.
        If confirmed, I would concentrate on the key priorities I believe
    Amtrak must focus on to be successful and remain a vibrant mode of
    transportation throughout the nation: the safety of its passengers;
    increasing its ridership as a competitive, convenient, clean and
    comfortable mode of transportation; and the need to make smart capital
    investments in existing infrastructure and the reduction and ultimate
    elimination of Amtrak's debt.
        Amtrak's focus on safety must be its top priority. Its record must
    improve. I was encouraged by Amtrak's recent hire of a new Executive
    Vice President of Safety reporting directly to the CEO. Amtrak's goal
    is to be in full compliance with PTC requirements, conditions and
    schedules set or administered by the FRA by the year-end deadline.
        As for success through increasing its ridership--Amtrak should
    provide a service that people want to utilize. It needs to be on-time,
    it needs to be clean and it needs to be a competitive option for all
    travelers with other transportation modes.
        There are a lot of growth opportunities in short distance corridors
    where Amtrak can work with their state partners to evaluate ridership
    and interest.
        Finally, smart capital investment is needed. Investment in aging
    infrastructure, some of which dates back to the Civil War era.
    Investment in new rolling stock for both the NEC and the National
    Network.
        I want to thank the President for nominating me. I am excited about
    the future of passenger rail in our country. If confirmed, I would be
    committed to working with my colleagues on the Board, the management of
    the company, the Administration, and Congress to ensure Amtrak is
    managed as safely, efficiently, and responsibly as possible.
        Thank you for your consideration of my nomination and I look
    forward to your questions.
                                     ______

                          a. biographical information
        1. Name (Include any former names or nicknames used):

            Ricky Allen Dearborn. I go by Rick.

        2. Position to which nominated; Amtrak Board.
        3. Date of Nomination: June 25, 2018.
        4. Address (List current place of residence and office addresses):

            Residence: Information not released to the public.

        5. Date and Place of Birth: July 19, 1965 in Nashville.
        6. Provide the name, position, and place of employment for your
    spouse (if married) and the names and ages of your children (including
    stepchildren and children by a previous marriage).

            Gina Rhoades Dearborn, Owner of Tucker Consulting LLC (advocacy
            consulting firm).

        7. List all college and graduate degrees. Provide year and school
    attended.

            Bachelor of Arts in Public Administration, University of
            Oklahoma 1987.

        8. List all post-undergraduate employment and highlight all
    management-level jobs held and any non-managerial jobs that relate to
    the position for which you are nominated.

            Deputy Chief of Staff for the President of the United States,
            Executive Director, the Presidential Transition, Senate Chief
            of Staff, Assistant Secretary of Congressional Affairs at the
            Department of Energy, Senate Legislative Director.

        9. Attach a copy of your resume.
        A copy is attached.
        10. List any advisory, consultative, honorary, or other part-time
    service or positions with Federal, State, or local governments, other
    than those listed above, within the last ten years. N/A
        11. List all positions held as an officer, director, trustee,
    partner, proprietor, agent, representative, or consultant of any
    corporation, company, firm, partnership, or other business, enterprise,
    educational, or other institution within the last ten years. N/A
        12. Please list each membership you have had during the past ten
    years or currently hold with any civic, social, charitable,
    educational, political, professional, fraternal, benevolent or
    religious organization, private club, or other membership organization.
    Include dates of membership and any positions you have held with any
    organization. Please note whether any such club or organization
    restricts membership on the basis of sex, race, color, religion,
    national origin, age, or handicap.

            Grace Episcopal Church, Montgomery, AL--Member since 20l1.

        13. Have you ever been a candidate for and/or held a public office
    (elected, non-elected, or appointed)? If so, indicate whether any
    campaign has any outstanding debt, the amount, and whether you are
    personally liable for that debt. N/A
        14. Itemize all political contributions to any individual, campaign
    organization, political party, political action committee, or similar
    entity of $500 or more for the past ten years. Also list all offices
    yon have held with, and services rendered to, a state or national
    political party or election committee during the same period.

            2018--SC AG Alan Wilson--$500; Rep. Blaine Luetkemeyer--$1,000;
            Rep. Bill Huizenga--$1,000. Campaign Manager 2014 Senate Race--
            Jeff Sessions of Alabama; Trump Campaign, Washington Office
            2016.

        15. List all scholarships, fellowships, honorary degrees, honorary
    society memberships, military medals, and any other special recognition
    for outstanding service or achievements.

            Secretary of Energy Excellence Award 2004

        16. Please list each book, article, column, or publication you have
    authored, individually or with others. Also list any speeches that you
    have given on topics relevant to the position for which you have been
    nominated. Do not attach copies of these publications unless otherwise
    instructed.

            NAM Speech--Admin Accomplishments--Jan. 2018--Philadelphia
            National Waste & Recycling Association--Admin Accomplishments--
            Feb. 2018; American Iron and Steel Institute--Experience in the
            WH/Admin Accomplishments--June 2018; RAGA--Experience in the
            WH/Admin Accomplishments--June 2018.

        17. Please identify each instance in which you have testified
    orally or in writing before Congress in a governmental or non-
    governmental capacity and specify the date and subject matter of each
    testimony.

            Assistant Secretary Nomination Hearing--Spring of 2003; Senate
            Energy Committee

        18. Given the current mission, major programs, and major
    operational objectives of the department/agency to which you have been
    nominated, what in your background or employment experience do you
    believe affirmatively qualifies you for appointment to the position for
    which you have been nominated, and why do you wish to serve in that
    position?
        During my twenty-four-year career both in the Trump and Bush
    Administrations and working for six separate U.S. Senators I had the
    chance to work on transportation authorization legislation each and
    every year. Further, under Sen. Sessions as both his Legislative
    Director and his Chief of Staff I worked directly with the Senator and
    our legislative team on transportation needs for both Alabama and the
    Nation while he served both on the Senate Budget Committee as Ranking
    Member and as a Member on the Environment and Public Works Committee as
    we as the Surface Transportation Subcommittee. I've also been an avid
    passenger on the Northeast Corridor Regional and Acela trains for
    years, having travelled several times this year already on the Regional
    to Stamford, CT, NYC and on the Acela to Philly and NYC.
        19. What do you believe are your responsibilities, if confirmed, to
    ensure that the department/agency has proper management and accounting
    controls, and what experience do you have in managing a large
    organization?
        My responsibilities would include examining the management and
    accounting controls put in place by Amtrak's executives. Deciding on
    and voting on decisions and actions put before me as a Board member, if
    confirmed. Monitoring the executive staff's financial, management and
    operational decisions and staying up to date on the best practices
    relating to all management and accounting standards throughout the rail
    industry. I would work to incorporate those best practices standards
    during my term, if confirmed, on the Amtrak Board. I'd be paying
    particular focus to the new SMS plan and PTC deadlines Amtrak has set
    as priorities. The Board also plays a key role in hiring the right
    executives and reviewing their performance.
        20. What do you believe to be the top three challenges facing the
    department/agency, and why?
        Amtrak's passenger safety must be priority one. Its record must
    improve in relation to the increased number of recent derailments and
    accidents on its routes. Amtrak has an obligation to justify its
    national network of routes and it must modernize its rail
    infrastructure to remain viable and vibrant, while being mindful of its
    budget limitations.
                       b. potential conflicts of interest
        1. Describe all financial arrangements, deferred compensation
    agreements, and other continuing dealings with business associates,
    clients, or customers. Please include information related to retirement
    accounts.
        I just retired from Federal service on March 16, 2018. My Federal
    pension will start its pull down shortly. I have also just joined a
    business/government relations consulting and strategic advisory firm
    and am a senior advisor to a Southeast-based law firm.
        2. Do you have any commitments or agreements, formal or informal,
    to maintain employment, affiliation, or practice with any business,
    association or other organization during your appointment? If so,
    please explain.
        I am an equity partner in an advisory and strategic consulting firm
    working for business clients and with the Federal Government.
        3. Indicate any investments, obligations, liabilities, or other
    relationships which could involve potential conflicts of interest in
    the position to which you have been nominated.
        Invested in widely dispersed Mutual Funds. No conflicts that I know
    of.
        4. Describe any business relationship, dealing, or financial
    transaction which you have had during the last ten years, whether for
    yourself, on behalf of a client, or acting as an agent, that could in
    any way constitute or result in a possible conflict of interest in the
    position to which you have been nominated.
        None that I'm aware of.
        5. Describe any activity during the past ten years in which you
    have been engaged for the purpose of directly or indirectly influencing
    the passage, defeat, or modification of any legislation or affecting
    the administration and execution of law or public policy.
        Over the past twenty four years I've worked on numerous pieces of
    legislation that impacted Amtrak and commercial rail. All of that work
    was on behalf of either the State of Alabama or the Nation.
        6. Explain how you will resolve any potential conflict of interest,
    including any that may be disclosed by your responses to the above
    items.
        I have no conflicts of interest that I know of, but will diligently
    work to review all contracts, agreements and associations with any
    entity or individual that would create a conflict a conflict.
                                c. legal matters
        1. Have you ever been disciplined or cited for a breach of ethics,
    professional misconduct, or retaliation by, or been the subject of a
    complaint to, any court, administrative agency, the Office of Special
    Counsel, professional association, disciplinary committee, or other
    professional group? No. If yes:

      a.  Provide the name of agency, association, committee, or group;

      b.  Provide the date the citation, disciplinary action, complaint, or
            personnel action was issued or initiated;

      c.  Describe the citation, disciplinary action, complaint, or
            personnel action;

      d.  Provide the results of the citation, disciplinary action,
            complaint, or personnel action.

        2. Have you ever been investigated, arrested, charged, or held by
    any Federal, State, or other law enforcement authority of any Federal,
    State, county, or municipal entity, other than for a minor traffic
    offense? If so, please explain.
        Yes, DUI in college, 1986; College sign removed from campus
    property, not charged--1986; Carrying an open container in Old Town,
    Alexandria, VA--held briefly and released, not charged--1990. Public
    disturbance--Pallbearer, VA, not convicted--2009.
        3. Have you or any business or nonprofit of which you are or were
    an officer ever been involved as a party in an administrative agency
    proceeding, criminal proceeding, or civil litigation? If so, please
    explain. No.
        4. Have you ever been convicted (including pleas of guilty or nolo
    contendere) of any criminal violation other than a minor traffic
    offense? If so, please explain.
        DUI in 1986, college years.
        5. Have you ever been accused, formally or informally, of sexual
    harassment or discrimination on the basis of sex, race, religion, or
    any other basis? If so, please explain. Never.
        6. Please advise the Committee of any additional information,
    favorable or unfavorable, which you feel should be disclosed in
    connection with your nomination.
        Not that hasn't already been listed.
                         d. relationship with committee
        1. Will you ensure that your department/agency complies with
    deadlines for information set by congressional committees? Yes, of
    course.
        2. Will you ensure that your department/agency does whatever it can
    to protect congressional witnesses and whistleblowers from reprisal for
    their testimony and disclosures? Yes.
        3. Will you cooperate in providing the Committee with requested
    witnesses, including technical experts and career employees, with
    firsthand knowledge of matters of interest to the Committee? Yes.
        4. Are you willing to appear and testify before any duly
    constituted committee of the Congress on such occasions as you may be
    reasonably requested to do so? Yes.
                                     ______

                           Resume of Rick A. Dearborn
    Employment
    The Cypress Group--April 2018-Present
    Partner; Partner in a twenty-person firm that provide strategic.
    consulting. lobbying, and independent research for a broad variety of
    financial services companies, trades, and funds. Representative clients
    include: Visa, InterContinental Exchange, Verizon, Hunt, Peabody,
    Lighthouse, Nomura, Barclays, BNP Paribas, Citi, Wells Fargo, Loews,
    PWC, Managed Funds Association, and Primerica. Hedge and private equity
    fund clients are confidential, but typically have over $4 billion AUM.
    Formulate comprehensive government relations strategies--particularly
    for firms in transition--which include: risk/opportunity analysis,
    resource allocation, personnel review, trade association participation,
    PR and communications firm retention, PAC formation and management, and
    think tank interaction.
    The President of the United States of America--January 2017-March 2018
    Deputy Chief of Staff: Responsible for the day-to-day operations of
    100 staff in five separate Executive Office of the President (EOP)
    departments--Office of Legislative Affairs, Office of Cabinet Affairs,
    Office of Political Affairs, Office of Public Liaison and the Office of
    Intergovernmental Affairs. In addition to managing each of the outward
    facing offices of the White House, a main function of implementing the
    President's policies is achieved by active participation in Principal
    Committee meetings with the policy shops inside the EOP--NEC, NSC and
    DPC. Strategic planning and implementation on all policy fronts with
    each of these councils and all EOP departments managed remains both a
    daily and longer-term function.
    President-Elect Transition Team--November 2016-January 2017
    Executive Director: Managed all aspects of the President-Elect's
    Transition team efforts. Daily responsibility included the direction
    and management of the core components of the Transition Team's 400+
    member Departments--Agency Action, Presidential Appointments, Policy
    Implementation and President-Elect Support. Led Cabinet selection
    efforts, policy development for guidance and pass off to WH policy
    councils for day one action, landing team and beachhead team
    development for all major Departments and Agencies and all preparations
    and support efforts tor the President-Elect, First Lady, their family
    and the senior EOP team.
    U.S. Senator Jeff Sessions--January 2005-January 2017
    Chief of Staff/State Director: Directly managed sixty-person office/
    operation in Washington, D.C. and all state staff in six Alabama
    offices. Directly responsible for all policy/legislative matters,
    press, budgeting, and staffing. Managed campaign operations including
    press operations during Senator Session's reelection in the 2014
    election cycle. Extensive interface with state/local elected officials,
    all state/national business interests, advocacy interests, and
    constituent interactions.
    United States Department of Energy--March 2003-December 2004
    Assistant Secretary of Congressional Affairs: Led all Congressional,
    Intergovernmental and tribal government outreach efforts on behalf of
    the Secretary. Advanced the policy priorities of the President and
    Department on Capitol Hill. Advised each subcabinet department and
    developed legislative strategies to advance each department's policy
    priorities. Held the first Tribal Energy Summit by the Department.
    Advanced the foundation of support for the Energy Policy Act of 2005,
    major components were drafted in 2004, reintroduced and passed in
    August of 2005.
    U.S. Senator Jeff Sessions--January 1997-March 2003
    Legislative Director: Devloped, organized and implemented all aspects
    of the Senator's legislative operation. Advised Senator on all roll
    call votes, cosponsorships, and legislative priorities. Drafted
    legislation and developed Committee and floor strategies for same.
    Passed over 40 pieces of legislation. Managed entire legislative staff
    and maintained a professional and cooperative work environment with
    little staff turnover. Maintained a strong network of contacts with
    industry, public policy, and advocacy groups. Approved all
    correspondence and floor/committee statements. Advised Senator on
    matters in his committees. Sen. Sessions' committees; Senate Armed
    Services Committee (Chairman, Fairyland); Senate Judiciary Committee
    (Chairman, Admin. Oversight and the Courts); Senate Health, Education,
    Labor and Pensions; Senate Budget Committee; Joint Economic Cmte. Also,
    the Senate Environment and Public Works Committee (1997-1999).
    Senate Steering Committee--July 1996-December 1996
    Chairman, Senator Kay Bailey Hutchison
    Executive Director: Served as the Chairman's director of strategy and
    floor operations. Orchestrated multiple Special Orders on the Senate
    Floor to highlight a more conservative policy agenda. Worked with the
    Senate Republican leadership, Steering Committee Senators, Committee
    staff and personal office staff to advance the Steering Committee's
    policy agenda and provide the Senate Republican leadership with
    alternative conservative legislative proposals on a variety of policy
    issues, Promoting a more conservative Judiciary was a key focus of the
    Steering Committee during this period.
    The American Medical Association--May 1996-July 1996
    Congressional Affairs
    Assistant Director: Liaison between the national organization and
    Capitol Hill. Focused on communicating organized medicine's legislative
    priorities to the Senate Leadership, Senate Finance and Labor
    Committees. Specific responsibilities included negotiating with Members
    and staff on patenting of medical procedures. telemedicine and patient
    confidentiality, maternity stay legislation and antitrust issues.
    Worked to target the AMA's political action committee's (AMPAC) focus
    on incumbents and challengers supportive of organized medicine.
    The Heritage Foundation--June 1993-May 1996
    Director, Congressional Relations, U.S. Senate: Served as the Senate
    liaison for The Heritage Foundation to all Senate offices on Capitol
    Hill. Coordinated with more than 40 policy analysts to develop, package
    and market their policy alternatives for Senate sponsorship. Worked
    extensively with the Senate Commerce Committee staff and Heritage
    analysts to develop comprehensive Telecommunications legislation.
    Developed and coordinated with Heritage analysts, the Senate Finance
    Committee staff and key Senate offices, legislative language for
    inclusion in the 1996 Welfare Reform bill. Provided multiple briefings
    on domestic and foreign policy for key Senators and their staff. Also,
    assisted Heritage public relations department in coordination of
    editorials and letters to the editor for Senate offices on targeted
    issues.
    Senate Republican Conference Secretary: January 1991-May 1993
    Secretary, Senator Trent Lott (November 1992-May 1993)
    Secretary, Senator Bob Kasten (January 1991-November 1992)
    Deputy Director: Responsible for day-to-day operations of Senate
    Leadership offices for Senators Trent Lott and Bob Kasten. Established
    working relationship with the six Senate Republican Leadership offices,
    the Republican National Committee, the National Republican Senatorial
    Committee, the National Republican Congressional Committee and 44
    Senate Republican personal offices. Created and disseminated the
    Interest Group Review reports, developed internally. Provided daily and
    weekly national polling data and voting attendance reports for all
    Senate Republican offices. Separately, developed anti-crime bills for
    both Senators Lott and Kasten. These bills had two primary provisions
    focusing on rural crime and crimes against seniors. Developed all press
    strategies for the legislation and traveled with Senator Kasten
    throughout the state of Wisconsin to promote his bill in town halls and
    with law enforcement officials. This legislation was adopted by the
    U.S. Senate in 1994. Served as Director of Coalitions on the Kasten for
    Senate campaign in late summer/fall of 1992.
    National Republican Senatorial Committee--March 1988-December 1990
    Senior Legislative Analyst: Began in the finance division in 1988;
    working on low donor direct mail. Worked to develop written responses
    for direct mail operations. Promoted to political division in late
    1988. Served as the NRSC's legislative analyst, researching and
    tracking roll call votes on legislation for use in campaign media
    development. Created strategies for paid and earned media opportunities
    for over 15 targeted Senate campaigns. Sent to Iowa in October of 1990
    to help direct campaign field work and GOTV efforts for Congressman Tom
    Tauke's Senate campaign.
    Education
    Bachelor of Arts in Public Administration/Economics, University of
    Oklahoma, Norman, Oklahoma--December 1987

    Semester program on Foreign Policy & International Affairs, American
    University, Washington, D.C.--Fall 1986

    References--Available upon request

        Senator Wicker. Thank you very, very much, Mr. Dearborn.
        Mr. Oberman, you are recognized, and we're delighted to
    have you.

    STATEMENT OF MARTIN J. OBERMAN, NOMINEE TO BE A MEMBER, SURFACE
                          TRANSPORTATION BOARD

        Mr. Oberman. Senator Wicker, Ranking Member Nelson----
        Is this on? There it is.
        Mr. Oberman.--and members of the Committee, thank you for
    this opportunity to appear today and for your consideration of
    my nomination of the Surface Transportation Board. I first want
    to introduce my wife, Bonnie, who has been mentioned, without
    whom I would not be anywhere. And also with me today are our
    son, Justin; our daughter, Maren; and our granddaughter, Esmae.
    And heads up, Esmae may seek to testify even if she is not
    recognized.
        [Laughter.]
        Mr. Oberman. Our family also includes our daughter-in-law,
    Sara; and our grandsons, Meyer and Emmet, who are watching at
    home.
        It is an honor for me to have been nominated to the Surface
    Transportation Board. I have been committed from a young age to
    a career in public service, and it has been my privilege to
    have served in several public positions over the years, both
    elected and appointed.
        Five years ago, Chicago's mayor appointed me to the Board
    of Metra. Although I had never worked in the railroad industry,
    I welcomed the opportunity to help a troubled agency regain its
    footing to provide honest and efficient transportation to the
    public. Shortly after my appointment, the other Board Members
    elected me Chairman, a position which enabled me to work in a
    bipartisan manner to undertake the enormous task of restoring
    Metra's public credibility and confidence. While the press and
    others today have referred to my success in this effort, the
    turnaround was the result of the entire Metra Board's effort
    and our outstanding CEO, Don Orseno.
        My nearly four years at Metra required my total emersion
    and continuous education in the railroad industry. What better
    place to learn railroading than the Chicago terminal, the most
    intense railroad hub in the Western Hemisphere?
        Metra operates 750 trains each day on the same tracks as
    500 freights and 100 Amtrak trains. I quickly learned that all
    aspects of our national rail system are fundamentally
    interconnected and that the rail system is central to the
    national economy.
        Railroads cannot function, or even survive, if all elements
    do not work smoothly together, each recognizing the interests
    and priorities of the other. I remember gently reminding one
    frustrated Metra commuter who texted to complain about another
    freight delay on his morning commute that his job in Chicago's
    Loop likely wouldn't have existed but for the contributions to
    the economy made by the freight railroad about which he was
    complaining.
        I also learned the value of Metra's stellar on-time
    performance, better than 95 percent, despite having to co-exist
    with the freights and Amtrak. Any passenger service must
    deliver good on-time performance to survive and thrive, and one
    cannot lead a commuter railroad, or any railroad, for more than
    a few hours without coming to grips with the enormous cost of
    maintaining railroad infrastructure.
        Having become knowledgeable about and a champion of the
    railroad industry, when a seat opened up on the STB, my desire
    to serve was as strong as ever. The longer I'm on this planet,
    the more aware I become that in our democracy, each of us has
    both the opportunity and the obligation to contribute to the
    common good in our own way. In my case, having gained expertise
    in the railroad industry, together with my many years in both
    public office and as a trial lawyer, I believe I have the
    experience to take advantage of this opportunity to continue to
    fill my obligations as a citizen.
        If confirmed, I will also bring a fresh outlook. At Metra,
    it became apparent that many aspects of the railroad industry
    operate on the basis of, ``That's always the way we have done
    it.'' Honoring precedent and not changing systems that are not
    broken are important values to which I adhere, and there are
    often sound reasons to continue operations and policies used in
    the past. Nevertheless, it is also critical to be willing to
    question practices if they appear to be archaic and ineffective
    at meeting the changing needs of consumers and businesses or
    keeping pace with technological advancement and the global
    economy.
        Congress recognized this need in the Reauthorization Act
    when it directed the STB to examine large rate case
    methodologies and to determine whether alternatives could be
    developed to streamline the process. Continuing to implement
    this mandate, along with the STB's newly granted authority to
    initiate investigations, present both the opportunity to
    improve the regulatory system and the challenge to do it right.
    To be sure, the STB should move forward judiciously and with
    due regard to protecting the vibrancy of both railroads and
    shippers.
        If confirmed, I will follow an approach, as I always have,
    of being committed to setting policy only after thorough
    homework and consultation with experts and the participation of
    all stakeholders. I will ensure that all constituents,
    railroads, shippers, working men and women, and communities and
    others are treated fairly and are afforded a forum for the
    constructive resolution of disputes. And I pledge to work in
    the same bipartisan manner that the STB was designed to
    function in and which I experienced with great success at
    Metra.
        Thank you again. And I look forward to your questions.
        [The prepared statement and biographical information of Mr.
    Oberman follow:]

       Prepared Statement of Martin J. Oberman, Nominee to be a Member,
                          Surface Transportation Board
        Chairman Thune, Ranking Member Nelson, members of the Committee,

        Thank you for this opportunity to appear before you today and for
    your consideration of my nomination to the Surface Transportation
    Board.
        First, I want to introduce my wife Bonnie without whom, of course,
    I would not be here--or anywhere for that matter.
        Also with me today are our son, Justin, and our daughter, Maren,
    and our granddaughter, Esmae. Our family also includes our daughter-in-
    law, Sara, and our grandsons, Meyer and Emmet, who are watching at
    home.
        It is both an honor and an exciting challenge for me to be
    nominated to serve on the Surface Transportation Board. It has been my
    commitment from a young age to devote my career to public service and
    it has been my privilege to have served in several public positions
    over the years--elected and appointed--except for a long hiatus when
    the voters of Illinois decided they would prefer me to work in the
    private sector.
        Five years ago, the Mayor of Chicago appointed me to the Board of
    Directors of Metra. Metra is the second largest commuter railroad in
    the country, carrying 300,000 passengers a day. Although I had never
    worked in the railroad industry, I welcomed the opportunity to help
    what had been a troubled agency regain its footing and provide honest
    and efficient transportation to the public. Shortly after my
    appointment to the board, the other board members elected me chairman,
    a position which provided the opportunity to work in a bi-partisan
    manner with my fellow board members to undertake the enormous task of
    restoring Metra's public credibility and confidence. While the press
    has referred to my success in this effort, Metra's turnaround was the
    result of the hard work of Metra's entire 11 member board and our
    outstanding CEO, Don Orseno.
        Needless to say, my nearly four years at Metra required my total
    immersion and continuous education in the railroad industry. What
    better place to learn railroading than the Chicago terminal, the most
    intense railroad hub in the western hemisphere, maybe the world?
        Metra operates 750 trains each day on the same tracks as 500
    freights and 100 Amtrak trains. I quickly learned that all aspects of
    our national rail system are fundamentally interconnected.
        I also learned how important the rail system is to the entire
    national economy and that railroads cannot function, or even survive,
    if all elements do not work smoothly together, each recognizing the
    interests and priorities of the other. I remember gently reminding one
    frustrated Metra commuter who texted to complain about another
    ``freight delay'' on his morning commute that his job in Chicago's Loop
    likely wouldn't have existed but for the contributions to the economy
    made by the freight railroad which he was complaining about.
        At the same time, I learned to value the stellar on-time
    performance of Metra--better than 95 percent--despite having to co-
    exist every minute with the freights and Amtrak. Any passenger service
    must deliver good on-time performance to survive and thrive. And one
    cannot lead a commuter railroad--or any railroad--for more than a few
    hours without coming to grips with the enormous cost of maintaining and
    improving railroad infrastructure.
        Having become knowledgeable about and a champion of the railroad
    industry during my term at Metra, when a seat later opened up on the
    STB, my desire to serve was as strong as ever.
        The longer I am on this planet, the more aware I become that in our
    democracy, each of us has both the opportunity and the obligation to
    contribute to the common good in our own way. In my case, having gained
    expertise in the railroad industry, together with my many years in both
    public office and as a trial lawyer, I believe I have the experience to
    take advantage of this opportunity to continue to fulfill my
    obligations as a citizen.
        If confirmed, I will bring not only my past experience, but a fresh
    outlook. At Metra, it became apparent that many aspects of the railroad
    industry operate on the basis of ``that's always the way we have done
    it.'' Honoring precedent and not changing systems that are not broken
    are important values to which I adhere and there are often sound
    reasons to continue operations and policies used in the past,
    particularly with respect to railroads.
        Nevertheless, it is also critical to be willing and able to
    question practices if they appear to be archaic and ineffective at
    meeting the changing needs of consumers and businesses or keeping pace
    with technological advancement and the global economy.
        Congress recognized this need in the 2015 Reauthorization Act when
    it directed the STB to examine ``whether current large rate case
    methodologies are sufficient, not unduly complex, and cost effective''
    and ``whether alternative methodologies exist, or could be developed,
    to streamline, expedite, and address the complexity of large rate
    cases.''
        Continuing to implement this mandate, along with the STB's newly
    granted authority to initiate investigations into service issues,
    present both the opportunity to improve the regulatory system and the
    challenge to do it right. To be sure, as the STB continues to move
    forward under the Reauthorization Act, it should do so judiciously with
    due regard to protecting the vibrancy of both railroads and shippers.
        My entire career has been based on a commitment to well thought-out
    approaches to setting government policy, pursued only after thorough
    homework and consultation with available experts while ensuring the
    participation of all stakeholders. That is the approach I will follow
    if confirmed to serve on the STB.
        I will work to ensure that all constituents--railroads, shippers,
    working men and women, communities--and others are treated fairly and
    are afforded a forum for the constructive resolution of disputes.
        Thus, it's a great time to return to public service as a member of
    the STB to tackle these exciting new missions.
        If confirmed, I pledge to you that I will work in the bi-partisan
    manner in which the STB was designed, and which I experienced with
    great success at Metra, to continue to bring rational and fair
    decisions to the railroad industry.
        Thank you again for this opportunity. I look forward to your
    questions.
                                     ______

                          a. biographical information
        1. Name (Include any former names or nicknames used): Martin J.
    Oberman.
        2. Position to which nominated: Member, Surface Transportation
    Board.
        3. Date of Nomination: July 17, 2018.
        4. Address (List current place of residence and office addresses):

            Residence: Information not released to the public.

        5. Date and Place of Birth: April 23, 1945; Springfield, Illinois.
        6. Provide the name, position, and place of employment for your
    spouse (if married) and the names and ages of your children (including
    stepchildren and children by a previous marriage).

            My spouse, Bonnie Oberman, is retired. We have two children,
            Justin, 43; and Maren, 40.

        7. List all college and graduate degrees. Provide year and school
    attended.

            Yale University, B.A. Psychology, 1966
            University of Wisconsin Law School, J.D., 1969

        8. List all post-undergraduate employment, and highlight all
    management-level jobs held and any non-managerial jobs that relate to
    the position for which you are nominated.

            1989 to present, attorney, sole practitioner

            1988-89, partner, Gould and Ratner

            1975-87, Alderman, 43rd Ward, Chicago, Illinois

            1977-81 (approximately) associate, Gottlieb and Schwartz

            1973-74 General Counsel, Illinois Racing Board

            1969-72, associate, Leibman, Williams, Bennett, Baird and Minow

            Summer of 1968, law clerk, Friedman, Koven, Salzman,
            Koenigsberg, Shapiro, Specks, and Homer (firm, no longer
            exists)

            Summer of 1967, laborer Rock Road Construction Co.

        9. Attach a copy of your resume.
        A copy is attached.
        10. List any advisory, consultative, honorary, or other part-time
    service or positions with Federal, State, or local governments, other
    than those listed above, within the last ten years.

            January-September 2013, Member, Midway Airport Advisory Panel

            Metra, Board member, October 2013-June 2017

            Chairman, February 2014-November 2016

            Board member, Chicago Metropolitan Agency for Planning,
            September 2017 to present

        11. List all positions held as an officer, director, trustee,
    partner, proprietor, agent, representative, or consultant of any
    corporation, company, firm, partnership, or other business, enterprise,
    educational, or other institution within the last ten years.
        None, other than listed above
        12. Please list each membership you have had during the past ten
    years or currently hold with any civic, social, charitable,
    educational, political, professional, fraternal, benevolent or
    religious organization, private club, or other membership organization.
    Include dates of membership and any positions you have held with any
    organization. Please note whether any such club or organization
    restricts membership on the basis of sex, race, color, religion,
    national origin, age, or handicap.

            Art Institute of Chicago

            Beverly Country Club

            Yale Club of New York

            Chicago Council on Global Affairs

            Chicago Architecture Foundation

            Chicago Council of Lawyers. President, 1996-97

            past member, American Bar Association

            (presently a member of all these organizations except the ABA.
            Cannot remember dates I first joined.)

            To my knowledge, none of these organizations restrict
            membership.

        13. Have you ever been a candidate for and/or held a public office
    (elected, non-elected, or appointed)? If so, indicate whether any
    campaign has any outstanding debt, the amount, and whether you are
    personally liable for that debt.
        Yes, I was a candidate for Alderman in Chicago in 1975, 1979, and
    1983 and was elected each time. I was a candidate for Illinois Attorney
    General in 1981 (not on the ballot that year), 1986, and 1994 and was
    not elected.
        There is no outstanding debt for any of these campaigns.
        14. Itemize all political contributions to any individual, campaign
    organization, political party, political action committee, or similar
    entity of $500 or more for the past ten years. Also list all offices
    you have held with, and services rendered to, a state or national
    political party or election committee during the same period.
        I have not held any offices with a political party or rendered any
    services.

        Contributions:
        Oberman for Congress                       2008        $2,300
        Democratic Senatorial Campaign             2012        $1,000
         Committee
        Friends of Dick Durbin                     2011          $500
        ActBlue Illinois                           2013          $500
        43rd Ward Democrats                        2013          $500
        Friends of Michele Smith                   2013          $500
        Friends of Michele Smith                   2011        $1,000
        Oberman for Illinois                       2009        $2,000
        Oberman for Illinois                       2009       $10,000(loan)
        Mayor Rahm Emanuel                         2018        $1,000

        15. List all scholarships, fellowships, honorary degrees, honorary
    society memberships, military medals, and any other special recognition
    for outstanding service or achievements.
        None since leaving the City Council in 1987
        16. Please list each book, article, column, or publication you have
    authored, individually or with others. Also list any speeches that you
    have given on topics relevant to the position for which you have been
    nominated. Do not attach copies of these publications unless otherwise
    instructed.

            ``Are Chicago Parks Free?'' 1970 Wisconsin Law Review 515,
            attached

            I have written numerous letters to the editor and op-ed pieces
            over the past 45 years. I have kept no record of these items.

            As Chairman of Metra, I gave numerous public statements (none
            formal or written) about the status of Metra's budget, capital
            needs and other matters. I have no record of these statements.
            I have given no speeches relevant to the Surface Transportation
            Board.

        17. Please identify each instance in which you have testified
    orally or in writing before Congress in a governmental or non-
    governmental capacity and specify the date and subject matter of each
    testimony.
        None.
        18. Given the current mission, major programs, and major
    operational objectives of the department/agency to which you have been
    nominated, what in your background or employment experience do you
    believe affirmatively qualifies you for appointment to the position for
    which you have been nominated, and why do you wish to serve in that
    position?
        One of the STB's principal functions is adjudicating disputes over
    transportation matters. My 49 years as a practicing trial attorney,
    trying cases, and arguing appeals, has well equipped me to participate
    in the STB's decision making and to render decisions based on both the
    law and the facts,
        As a railroad regulator, it is important that the STB understands
    how the railroad industry functions. My service as Chairman of Metra
    from 2014-16 required immersing myself in that industry in order to
    begin mastering its complexities. Serving on the STB will afford
    another important public service opportunity and will enable me to make
    a contribution to ensuring the efficient functioning of the railroad
    industry for all those who depend on it, including not only carriers
    and shippers, but also working men and women and the public at large,
    who depend on a healthy railroad industry for their livelihoods.
    Serving all of these interests is essential to the well-being of the
    Nation's economy as a whole.
        Because Metra operates in the Chicago terminal, the busiest
    railroad hub in North America, my chairmanship taught me to respect the
    importance of the sensible and reasonable regulation of railroads.
    Metra operates 753 commuter trains each day throughout the Chicago
    region, mostly on tracks it shares with Class I railroads and Amtrak.
    Given the central importance of the Chicago terminal to the Nation's
    rail traffic, it was essential to quickly comprehend the major role
    that freight rail plays in the U.S. economy, and the necessity that
    passenger and freight rail work closely together in a cooperative
    manner, together with local and national governments, to ensure the
    optimal functioning of that economy. Further, one cannot assume
    leadership of a major commuter railroad such as Metra without being
    immediately impressed with the substantial ongoing capital investment
    needs of all railroads to operate safely and efficiently.
        As Metra Chairman, I led the agency in formulating and adopting a
    10-year capital program of just over $2 billion dollars, primarily
    aimed at funding a renewal of Metra's rolling stock by acquiring more
    titan 400 new rail cars and dozens of new locomotives over the 10-year
    period. The program included a plan to raise commuter fares each of the
    10 years in order to fund debt service on a projected $400 million bond
    issue to pay a portion of the $2 billion cost. The plan was significant
    because in Metra's entire 30-year history, it had never developed such
    a capital plan for renewal of its rolling stock and had never provided
    an advance adoption of a 10-year fare increase plan which was much
    needed. Unfortunately, because of changes in capital funding by the
    State of Illinois, other fiscal setbacks, and difficulties in
    identifying appropriate manufacturers of rail cars, the plan has not
    yet been implemented as initially designed.
        An important part of any agency's mission is to operate with
    integrity and efficiency. I became Chairman of Metra in 2014 at a time
    following major scandals involving Metra's top leadership in 2010 and
    again in 2013. Working closely with Metra's other board members and
    then-Executive Director Don Orseno, I led the effort to modernize
    Metra's corporate governance and to enact measures aimed at ending
    Metra's scandal-scarred history. Included in these changes were the
    implementation of a computerization of Metra's financial accounting and
    management systems, the creation of a professional internal audit
    department reporting directly to Metra's board, the adoption of a
    system to implement statutory anti-patronage rules which had been
    largely ignored in the past, and insisting on a more transparent agency
    culture and inclusive decision making among Metra's 11-member board. I
    believe all of these measures have put Metra on the path to operating
    as a professionally managed railroad corporation.
        I will bring to STB service a life-long commitment to government's
    operating in an honest, transparent, and efficient manner. At Metra, I
    was adept at building and maintaining consensus among diverse
    stakeholders. I functioned as Chair in a bi-partisan manner. During my
    tenure as Chairman, there were only two roll call votes--of many dozens
    taken--that were not unanimous. At the STB, I will have an opportunity
    to apply my experience and leadership in service to the U.S. economy by
    working to ensure the continuation of a healthy railroad industry that
    serves the needs of the shipping public.
        I will also bring to the STB a fresh outlook. At Metra, it became
    apparent that many aspects of the railroad industry operate on the
    basis of ``that's always the way we have done it.'' Honoring precedent
    and not changing systems that are not broken are important values to
    which I adhere, and there are often sound reasons to continue
    operations and policies used in the past, particularly with respect to
    railroads. Nevertheless, it is also critical to be willing and able to
    question practices if they appear to be archaic and ineffective at
    meeting the changing needs of consumers and businesses or keeping pace
    with technological advancement and the global economy.
        Congress recognized this need in the 2015 Reauthorization Act when
    it directed the STB to examine ``whether current large rate case
    methodologies are sufficient, not unduly complex, and cost effective''
    and ``whether alternative methodologies exist, or could be developed,
    to streamline, expedite, and address the complexity of large rate
    cases.'' My entire career has been based on a commitment to well
    thought-out approaches to setting government policy, pursued only after
    thorough homework and consultation with available experts while
    ensuring the participation of all stakeholders. That is the approach I
    will follow if confirmed to serve on the STB.
        19. What do you believe are your responsibilities, if confirmed, to
    ensure that the department/agency has proper management and accounting
    controls, and what experience do you have in managing a large
    organization?
        While the Chairman has primary responsibility for managing the STB,
    all Board members must take responsibility to he timely informed of the
    agency's operations, and to assist and support the Chairman
    cooperatively in carrying out those responsibilities while holding the
    Board and all staff accountable for proper management and fiscal
    practices. Referring back to my recent experience as Chairman of Metra,
    I led and oversaw Metra's modernizing its management and fiscal
    accountability mechanisms. Other efforts I undertook to reform and
    modernize Metra discussed above have prepared me for the proper role of
    serving on a board of a large organization and holding all concerned
    accountable, while not micro-managing. This is the approach I would
    follow at the STB, if confirmed.
        20. What do you believe to be the top three challenges facing the
    department/agency, and why?
        a. The Board needs to implement the mandates in the 2015
    Reauthorization Act. The Congress (and others) have made it clear that
    the Board's approach to its economic regulatory function needs to be
    improved and determining appropriate approaches to this assignment is a
    top priority. In particular, examining the SAC test and exploring
    alternatives ranks high on the Board's needs. Further, in light of the
    changes in permitted Board member communications under the
    Reauthorization Act, the Board must act to ensure transparency and
    accountability as it moves forward under these new procedures. It is my
    understanding that the two current Board members have already enacted
    procedures to accomplish these requirements and the other Board members
    must reinforce and commit to those efforts.
        b. The Board needs to examine and implement its new responsibility
    to initiate investigations to ensure proper service by the railroads.
    Because this is a new role for the Board, the Board needs to adopt
    measures for the careful and Judicious exercise of this responsibility.
    While ensuring that the Nation's economy is well served by a high
    functioning and healthy railroad system is a central responsibility of
    the Board, the Board must nevertheless maintain a proper perspective
    with respect to this newly granted power.
        c. The Board needs to adopt and adhere to a timely and efficient
    decision-making process, both with respect to cases between parties and
    its rule making responsibilities. With additional new board members,
    the Board must quickly and efficiently address the backlog of pending
    matters and adopt efficient procedures going forward because the
    Board's constituents are entitled to timely and responsive decision
    making.
                       b. potential conflicts of interest
        1. Describe all financial arrangements, deferred compensation
    agreements, and other continuing dealings with business associates,
    clients, or customers. Please include information related to retirement
    accounts.
        I have practiced law as a sole practitioner for nearly 30 years and
    have recently wound down my law practice. My one remaining pending case
    is a contingent fee matter pending in the Illinois Appellate Court
    which I have made arrangements to refer to another lawyer if I am
    confirmed and would anticipate retaining a percentage of the fee if one
    is earned. It is my understanding that the OGE has approved this
    arrangement.
        I am counsel in one other matter which has settled and in which I
    have been awarded a fee and am awaiting final distribution of funds.
        Both of the above matters have no relationship to the STB or the
    Federal Government.
        I have a profit sharing plan and a separate investment account,
    both of which have been fully disclosed on my 278 form. The OGE Las
    indicated in my ethics agreement those investments which must be
    divested at the time I begin government service and I have committed to
    doing so.
        I am also making arrangements for both investment accounts to
    acquire only exempt investments, such as mutual or index funds, going
    forward and during the time I would serve on the STB.
        2. Do you have any commitments or agreements, formal or informal,
    to maintain employment, affiliation, or practice with any business,
    association or other organization during your appointment? If so,
    please explain.
        None other than described above.
        3. Indicate any investments, obligations, liabilities, or other
    relationships which could involve potential conflicts of interest in
    the position to which you have been nominated.
        See answer to 1, above. Those investments which would involve
    conflicts will be divested before beginning government service.
    Otherwise, none.
        4. Describe any business relationship, dealing, or financial
    transaction which you have had during the last ten years, whether for
    yourself, on behalf of a client, or acting as an agent, that could in
    any way constitute or result in a possible conflict of interest in the
    position to which you have been nominated.
        None, to my knowledge.
        5. Describe any activity during the past ten years in which you
    have been engaged for the purpose of directly or indirectly influencing
    the passage, defeat, or modification of any legislation or affecting
    the administration and execution of law or public policy.
        As Chairman of Metra, I publicly advocated for the Congress to
    extend the deadline for implementation of PTC because it was physically
    impossible for Metra to create and activate such a system within the
    time originally allotted.
        Also, as Chairman, I regularly met with members of the Illinois
    Congressional delegation to urge more Federal funding for public
    transportation, such as Metra, which is in great need of additional
    funding.
        I also had frequent communications with Amtrak urging a revision of
    the relationship between Metra and Amtrak concerning Union Station in
    Chicago.
        6. Explain how you will resolve any potential conflict of interest,
    including any that may be disclosed by your responses to the above
    items.
        I resigned from the Metra board in June, 2017 which will mean that
    my service on the STB, if confirmed, will be more than one year after
    leaving. I intend to closely monitor cases which might directly involve
    Metra and if I do not believe I can independently and objectively
    participate in such matters or if there is a concern about the
    appearance of impropriety, I would recuse myself from participation. I
    plan to seek advice and counsel on such matters from the STB's ethics
    officials should such situations arise.
        Upon confirmation to the STB, I will completely terminate my law
    practice, which is nearly terminated at present, as discussed above.
        I will also resign from my unpaid position on the Board of Chicago
    Metropolitan Agency for Planning.
                                c. legal matters
        1. Have you ever been disciplined or cited for a breach of ethics,
    professional misconduct, or retaliation by, or been the subject of a
    complaint to, any court, administrative agency, the Office of Special
    Counsel, professional association, disciplinary committee, or other
    professional group? If yes:

      a.  Provide the name of agency, association, committee, or group;

      b.  Provide the date the citation, disciplinary action, complaint, or
            personnel action was issued or initiated;

      c.  Describe the citation, disciplinary action, complaint, or
            personnel action;

      d.  Provide the results of the citation, disciplinary action,
            complaint, or personnel action.
        No.
        2. Have you ever been investigated, arrested, charged, or held by
    any Federal, State, or other law enforcement authority of any Federal,
    State, county; or municipal entity, other than for a minor traffic
    offense? If so, please explain. No.
        3. Have you or any business or nonprofit of which you are or were
    an officer ever been involved as a party in an administrative agency
    proceeding, criminal proceeding, or civil litigation? If so, please
    explain. No.
        4. Have you ever been convicted (including pleas of guilty or nolo
    contendere) of any criminal violation other than a minor traffic
    offense? If so, please explain. No.
        5. Have you ever been accused, formally or informally, of sexual
    harassment or discrimination on the basis of sex, race, religion, or
    any other basis? If so, please explain. No.
        6. Please advise the Committee of any additional information,
    favorable or unfavorable, which you feel should be disclosed in
    connection with your nomination.
        None, other than what appears on my resume and as stated above.
                         d. relationship with committee
        1. Will you ensure that your department/agency complies with
    deadlines for information set by congressional committees?
        Yes, I believe that congressional oversight is essential to our
    government's proper functioning and must be respected.
        2. Will you ensure that your department/agency does whatever it can
    to protect congressional witnesses and whistle blowers from reprisal
    for their testimony and disclosures? Yes.
        3. Will you cooperate in providing the Committee with requested
    witnesses, including technical experts and career employees, with
    firsthand knowledge of matters of interest to the Committee? Yes.
        4. Are you willing to appear and testify before any duly
    constituted committee of the Congress on such occasions as you may be
    reasonably requested to do so? Yes.
                                     ______

                          Resume of Martin J. Oberman
    Career Experience
    Law
    1989 to present, Complex civil litigation across a broad array of
    substantive matters, including medical and legal malpractice,
    commercial disputes, local taxation, constitutional rights, employment
    and university tenure discrimination issues, civil rights, consumer
    fraud, shareholders derivative, securities fraud, RICO violations, and
    land use. Argued appeals in Federal and state appellate courts.
    Admitted to practice in the U.S. Supreme Court, Illinois Supreme Court,
    U.S. Courts of Appeals for the Third and Seventh Circuits, and the U.S.
    District Court for the Northern District of Illinois.

    1988-89; partner, Gould and Ratner.

    1979-81 associate, Gottlieb and Schwartz.

    1975-79, 1981-87, Part time private law practice while serving in City
    Council.

    1969-72, associate, Leibman, Williams, Bennett, Baird and Minow (now
    Sidley & Austin).
    Bar Memberships
    Chicago Council of Lawyers. President, 1996-97

    Past member. American Bar Association

    Past member, Chicago Bar Association
    Government Service
    September 2017 to present Board member, Chicago Metropolitan Agency for
    Planning (CMAP).

    February 2014-November, 2017 Chairman, Board of Directors, Metra.

    2013-2017 Member, Board of Directors, Metra.

    2013 Member, Midway Airport Advisory Panel, appointed by Mayor of
    Chicago.

    1987-88, Chair, Chicago's Shoreline Protection Commission. Directed
    wide-ranging group of experts, government representatives, and
    community leaders in producing detailed planning and engineering report
    for the complete rehabilitation of Chicago's shoreline while ensuring
    the highest degree of environmental protection.

    1975-87, Alderman of Chicago's 43rd Ward.

       Engaged in detailed oversight of city budget and worked to
            achieve numerous cost-saving measures, Also worked for reforms
            to achieve a more open budget-making process, a freedom of
            information law and other reform measures.

       Chair, mayoral ad hoc commission comprised of labor and
            management representatives appointed to develop municipal
            employee collective bargaining system in order to guaranty
            collective bargaining rights to city employees. 1979-80

       Chair, City Council Committee on Public Records and
            Information, 1983-86

       Examples of legislative priorities and achievements:

         Created Planned Manufacturing District concept, first
                in the United States, to protect heavy industrial areas.

         First Chicago alderman to champion community or
                neighborhood team policing, a ground-breaking concept at
                the time.

         Chief sponsor and catalyst for numerous anti-
                corruption measures, structural reforms of city government,
                gay rights and non-smoking ordinances.

       Best Alderman award from Independent Voters of Illinois.

    1973-74, first General Counsel to the Illinois Racing Board. Handled
    numerous assignments, including largely rewriting the Board's
    regulations, advancing far reaching proposals to prevent abuse through
    drugging, drafting a completely new statute for the industry, and
    conducting investigations of corrupt activities.
    Education
    University of Wisconsin Law School
    Honors: Wisconsin Law Review, Note Editor, 1968-69
    Order of the Coif
    Juris Doctor, 1969

    Yale University
    Bachelor of Arts, Psychology, 1966

    Culver Military Academy, 1962
    Class valedictorian
    Personal
    Married to Bonnie for 47 years. Two children, Justin and Maren.

        Senator Wicker. Thank you very much.
        And thanks to both of our witnesses for staying within the
    allotted time.
        Mr. Oberman, I think Esmae behaved very well----
        Mr. Oberman. So far.
        Senator Wicker.--during your testimony. Can I assume you're
    a J.D. Salinger fan?
        Mr. Oberman. Actually, my daughter selected the name. It's
    spelled slightly different from the ``Esme--with Love and
    Squalor'' spelling. But I am a J.D. Salinger fan. And I wrote
    an honors paper at prep school on that story. So yes.
        [Laughter.]
        Mr. Oberman. And that was a long time ago.
        Senator Wicker. And that will be submitted for the record
    without objection.
        [Laughter.]
        Mr. Oberman. If I--if I can find it.
        [Laughter.]
        Senator Wicker. Thank you so much.
        Mr. Dearborn, let's talk about Gulf Coast rail. As you
    know, we had this before Hurricane Katrina, and we've gone
    without passenger rail service since then. The Southern Rail
    Commission has indicated that this service will be restored. It
    will begin a state-supported route from New Orleans to Mobile,
    and with the hopes eventually of continuing that expansion on
    to Orlando.
        Given that there is high demand, adequate population along
    this Gulf Coast route, and the local community is willing to
    provide a portion of the funding, do you believe this is
    economically viable for Amtrak? And what economic impacts would
    a passenger service from New Orleans to Mobile and back have
    for communities along the Gulf Coast?
        Mr. Dearborn. Senator, thank you for the question. I'm very
    familiar with that route. I was familiar with it when it was up
    and running prior to Katrina. I certainly recognize your
    leadership, your strong leadership, on trying to restore the
    route. I do think it shows promise and economic viability for
    the communities all along the Gulf Coast. I think it's
    something that deserves serious consideration. If confirmed, I
    would want to work with management and with you, your staff,
    and this Committee to do everything we could to try to
    reestablish that service to make sure that the ridership is up.
    And I do believe that it would create a good economic
    development along the Gulf Coast.
        Senator Wicker. OK. Now let me shift to long distance
    service, and there may be others on the Committee that want to
    ask about this, too. We hear concerns from communities that
    rely on long distance service that Amtrak is attempting to
    eliminate many of these routes. What is your view on this? Are
    you aware of the beneficial impact of Amtrak's long distance
    service of the ridership that occurs on long distance service,
    of the effect that it has on rural communities and states, such
    as mine, as well as regions, like the Northeast Corridor? And
    will you commit to communicating with Congress on Amtrak's
    intentions regarding the future of the national passenger rail
    network, including long distance service?
        Mr. Dearborn. Yes, Senator, I think that long distance
    service is a critical part of the national passenger rail
    system. I think you hit the nail on the head with regards to
    communication. I think it's going to be important for the
    management team, as well as the Board, to work with the Members
    of this Committee, Congress, and the Administration to continue
    to support and aid a long distance service across our country.
    I am committed to it. I do believe it's important. It faces
    serious challenges, but I think those are challenges that we
    can work on together.
        Senator Wicker. Thank you very much. And then have you
    familiarized yourself yet with the Federal court ruling on the
    provision passed by Congress to allow FRA and Amtrak to write
    performance metrics and standards? Is this something you have
    looked into yet?
        Mr. Dearborn. Senator, I'm aware of the recent court
    decision. I understand that FRA is now directed to go back and
    look at creating new metrics. But I haven't had a chance to
    look at it in depth. I'll make sure it's a priority of mine.
        Senator Wicker. OK. Well, given this ruling, please supply
    then for the record what you see as the next steps for Amtrak
    to fix the on-time performance problem. And also I think we
    should note that the Durbin-Wicker amendment was passed as an
    amendment to the appropriation bill this week that deals with
    this issue.
        Thank you very much.
        Mr. Dearborn. Thank you, Senator.
        Senator Wicker. Senator Nelson, you are recognized.
        Senator Nelson. Mr. Chairman, I'm going to--since I
    deferred in giving an opening statement, I'm going to make a
    statement. So a quick statement, so if you would start the
    clock when I start the questions.
        Because this is Amtrak and because you have to worry about
    passengers walking on a train with a gun, there is before us
    the allowance by the Department of Justice and the U.S.
    Department of State, the allowing of blueprints of 3D-printed
    guns to go onto the Internet August the 1st. You're starting to
    hear something about this. I just gave a speech yesterday on
    the floor about it.
        I won't go into all the details. But the essence of all of
    our efforts, including Amtrak, to protect its passengers,
    obviously, TSA at airports, obviously the Sergeant-at-Arms at
    Capitol Police in the Capitol complex, obviously all of the
    myriad security inspections at courthouses and State houses, et
    cetera, et cetera, is going to be for naught if we suddenly
    have the capability of a plastic gun now having the blueprints
    allowed to be put out by the U.S. Government on the Internet
    come August the 1st.
        I plead for the administration to reverse its decision. And
    anybody who thinks, ``Oh, you'd catch it because there would be
    a metal bullet,'' not so. They've got it to where the plastic
    can be hard enough that the bullet can actually be plastic as
    well. And as a result, we have a new threat that is facing us.
        There is legislation out there that would require any gun
    to have a metal--it's not legislation, it's law--a metal
    attachment, but what has happened is that they've gotten around
    that by making the metal part of the gun, which would be picked
    up by a machine, an X-ray machine, that that's detachable. And
    so this is the condition that we find ourselves in, and because
    this is Amtrak, and since you all are going to be having to do
    with transportation, it's an appropriate issue to bring up.
        Thank you, Mr. Chairman.
        Now, Mr. Dearborn, it looks like that Amtrak is further
    along than other passenger and commuter railroads in the
    Positive Train Control implementation. Do you know the status
    of Amtrak's progress? Do you believe they'll meet the deadline
    at the end of the year?
        Mr. Dearborn. Senator, thank you for the question. I think
    safety is the key priority. I am familiar with Positive Train
    Control, and I do recognize that it is Amtrak's goal to meet
    the deadline at the end of the year to be certified as PTC-
    ready and capable, and to work on any areas that aren't
    currently and to develop mitigation and plans to deal with the
    risk so that they are still operational. And they're working
    with all their--all the stakeholders on the rail, host
    railroads, commuters, and others to try to meet that deadline.
        Senator Nelson. I second the comments of the Chairman about
    the Gulf Coast train service that was suspended after Hurricane
    Katrina. Those folks--you all are studying it. You've basically
    given the green light, but there are hiccups along the way, and
    I would join the Chairman in certainly encouraging that that
    service be restored.
        Mr. Dearborn, it is incumbent upon me, as the Ranking
    Member, that I need to ask you this question. We understand
    that you have been a part of the Senate family and that you are
    well regarded around here, but this issue has arisen, and it is
    incumbent upon this Committee that we get it on the record.
        Media reports indicate that you have been the recipient of
    e-mails by several people associated with the Russian interest
    attempting to meet President Trump prior to the 2016 election.
    And according to these reports, at least one of these people
    who e-mailed you was Paul Erickson, who reached out on behalf
    of Aleksandr Torshin, a Deputy Governor of Russia's Central
    Bank and a member of Russia's President Putin's United Russia
    Party.
        Mr. Erickson appears to be listed as U.S. Person 1 in the
    Special Counsel Robert Mueller's indictment of Maria Butina,
    who was charged with conspiracy and acting as a foreign agent
    in the U.S. The incidences of the Russian interference in the
    2016 election, and possible interference in the upcoming
    election obviously is under discussion, and it's very serious.
    Do you have anything to comment on for the record with regard
    to these e-mails that came to you from Mr. Erickson?
        Mr. Dearborn. No, sir, I don't.
        Senator Nelson. OK, we'll let that stand for the record.
        Senator Wicker. Thank you.
        And Senator Fischer is next followed by Senator Tester.

                    STATEMENT OF HON. DEB FISCHER,
                       U.S. SENATOR FROM NEBRASKA

        Senator Fischer. Thank you, Mr. Chairman. And thank you,
    gentlemen, for being here today.
        Mr. Oberman, as you know, railroads are vital to our
    economy, but so are the shippers that they serve. If nominated,
    how would you ensure your work maintains that balance between
    shippers and railroads at the STB?
        Mr. Oberman. Thank you for that question, Senator. The key,
    of course, is the word you used ``balance.''
        [Microphone malfunctions.]
        Mr. Oberman. So when I was on the Council, Mayor Daley
    frequently turned off my microphone, but I didn't have the
    ability to turn it back on myself.
        Senator Fischer. I had nothing to do with that.
        [Laughter.]
        Mr. Oberman. But I realize I have to act here, so I
    apologize.
        The question is balance. And it's a very nuanced question.
    And as I'm sure you know and as I have been immersed in
    recently, the STB has before it the consideration of a number
    of issues that deal with that balance, an intense study of the
    whole rate regulation function of the Board along with a
    proposed rulemaking involved with competitive switching, which,
    of course, has to do fundamentally with that balance. And if
    confirmed, I can tell you that I will focus very carefully on a
    fair resolution of those issues.
        What does impress me, as I said in my statement, is the
    enormous capital costs that it takes to run a railroad, and we
    don't want to have ratemaking which undermines the ability of
    the railroads to deliver and at the same time recognizing that
    there are situations around the country where shippers may need
    some relief from that, and we've got to make it practical. I
    think that's really the key, and that's what I would focus on
    if confirmed.
        Senator Fischer. In your testimony, you talked about your
    experience at Metra working with freight railroads in one of
    the busiest railroad terminals in the world. So what experience
    did you take away from working with all of those various
    interests at the Chicago terminal? And what do you think will
    be the number one experience that will most help you at the
    STB?
        Mr. Oberman. Well, that's an excellent question, and, of
    course, the main railroads we dealt with go right from your
    state; the BN and the UP operate four of Metra's seven lines.
    So we interacted with those railroads on a regular basis.
        I--what I found is that everybody in the railroad industry
    recognizes this interrelatedness that is so key when you have
    so much traffic operating on the same tracks together. And it
    won't work unless you operate daily on a cooperative basis. You
    can't litigate every dispute. You've got to have a way to
    resolve things and make the system work. And the operations
    folks at Metra, who I respected, particularly our then-CEO, Don
    Orseno, were just a genius at working out problems so that all
    the trains flowed through smoothly. And having a 95-percent on-
    time record with the passenger side and acknowledging the
    interests of these major freight carriers, the UP and BN, it
    just was a tribute to the goodwill, I think, of the people on
    all sides of--on both sides, on both passenger and freight. And
    that's really what I take away.
        The STB has a wonderful staff that I'm learning--I've been
    meeting that do informal dispute resolution every day, and the
    system wouldn't work if the STB didn't have that function. So,
    if confirmed, I would certainly be a person who--to support the
    continuation of that sort of positive attitude of walking out--
    working out solutions so that disputes don't have to be
    litigated because, as a trial lawyer for 49 years, what I know
    is that litigation is usually the worst way to resolve a
    dispute.
        So I think that's really the key, the cooperative
    interrelation between railroads, passenger, freight, shippers,
    labor. Everybody has got to be heard and accommodated.
        Senator Fischer. Thank you.
        Mr. Dearborn, thank you for being here today, and thank you
    for your service in various capacities throughout the years,
    especially here in the Senate, and your willingness to continue
    to serve, sir.
        Nebraska has one long distance route through the state. And
    I should quiz you on it, but it's the California Zephyr. And I
    have several constituents who have reached out to me seeking
    better service along that line. At the same time, the current
    President and CEO of Amtrak, Richard Anderson, is making a
    number of changes to reorganize the railroad. Do you think the
    goal of better service on Amtrak routes, like the California
    Zephyr, is compatible with the current direction of Amtrak? And
    if so, how?
        Mr. Dearborn. Thank you, Senator. I do think it's
    compatible. I think that the long distance routes are a
    critical part of passenger rail. I think that the
    opportunities, especially in State-supported services, the
    ability to focus on increasing ridership, whether it's
    interstate rail or commuter, is probably the growth for Amtrak.
    I think that Amtrak should be focused on is operating costs.
    And I think at the same time, the main focus on top of safety
    always is increasing its ridership, and by doing that, it also
    has to--by increasing its ridership, it will increase its
    revenue. And that, I think, will allow us to have a very robust
    long distance service.
        Senator Fischer. Thank you, sir.
        Thank you, Mr. Chair.
        Senator Wicker. Thank you.
        Senator Tester, I should have recognized you early. I'm
    sorry for that. But before I do, let me note that we are
    honored today to be joined by the Chairman of the Surface
    Transportation Board, Ann Begeman, who is a former Staff
    Director of this very Committee.
        So, Chair Begeman, we are delighted to have you.
        Senator Tester, you are recognized.

                     STATEMENT OF HON. JON TESTER,
                       U.S. SENATOR FROM MONTANA

        Senator Tester. Thank you, Mr. Chairman.
        And I'm going to follow up on Senator Fischer's questions
    just a little bit.
        Increasing service, better service, and increasing
    ridership is kind of like the chicken and the egg, which comes
    first? You have ridden passenger trains here in the United
    States.
        Mr. Dearborn. Yes, sir.
        Senator Tester. Have you ever ridden any passenger trains
    in Europe?
        Mr. Dearborn. I have.
        Senator Tester. You have. I have not. I have been told that
    their service is better, the experience is better, and this is
    what I've been told, secondhand information.
        So the question is, what can we do? Because I don't think
    the ridership comes until the service comes, myself.
        Mr. Dearborn. Right.
        Senator Tester. What can you do, being a member of the
    Surface Transportation Board to increase--what will you
    advocate for to increase the quality of service of the Amtrak
    experience?
        Mr. Dearborn. Well, I think it's competition. Every mode of
    transportation is going to require competition. You have to
    have a product that the consumer wants to purchase. It has to
    be convenient, clean, and comfortable. We have to--we have to
    think through, ``What are the things that a rider would want on
    the train?'', the focus on increasing Wi-Fi service, looking at
    what can be done on social media, entertainment, food and
    beverage.
        When you choose your route, do I go in the car, do I take
    the plane, or do I have a chance to take rail? And we should do
    everything--I think that the Board, working with management,
    should do everything it possibly can to make ridership more
    attractive, to look for innovation.
        Senator Tester. And you will advocate for those kind of
    things to increase the----
        Mr. Dearborn. Yes, sir, I would.
        Senator Tester. So right now, we're kind of in a conundrum
    because we have the Empire Builder in our state, the Senator of
    Nebraska and the Chairman talked about different routes in
    different parts of the country, and I get the impression that
    Amtrak is being reduced, not built, because it's requiring
    taxpayer dollars. How do you feel about that? Do you think
    taxpayer dollars are necessary to keep Amtrak going, or do you
    think you should pare down to the point where you only have the
    lines that are profitable?
        Mr. Dearborn. Well, Senator, I don't have a crystal ball to
    know whether or not Amtrak----
        Senator Tester. Your personal belief.
        Mr. Dearborn. My personal belief?
        Senator Tester. Yes.
        Mr. Dearborn. I'm--I'm definitely going to share that with
    you, which I can't predict whether or not Amtrak in future
    years could operate without financial assistance. I would hope
    that if we do focus on creating a good product, a service that
    people are comfortable with, enjoy, and it's affordable, then
    revenues will rise, and as they rise, maybe the dependency on
    those Federal dollars would be less.
        Senator Tester. OK. In the meantime, I certainly hope you
    advocate, because I think it's an important part of
    infrastructure for this Nation, and I think it's a piece of
    infrastructure we don't utilize enough as a country.
        Mr. Dearborn. I agree.
        Senator Tester. And so--and that brings me to you, Mr.
    Oberman.
        Mr. Oberman. Yes, sir.
        Senator Tester. Over the last 70 or 80 years, we've seen a
    lot of railroad lines abandoned for a number of reasons, and
    they're justifiable economically. I don't know if the Surface
    Transportation Board has oversight on these lines that have
    been abandoned after they've been abandoned. Could you
    enlighten me if they do?
        Mr. Oberman. Well, I'm not yet a legal expert in the nuance
    of that law. In order--as I understand it, Senator, a railroad
    can't abandon a line totally without getting approval from the
    Surface Transportation Board. There is a point in the process--
    and a lot of this is, sort of, based on the language because
    abandonment, there are different kinds of abandonment.
        Senator Tester. Yes.
        Mr. Oberman. But I think at the point where there has been
    a true abandonment and there is simply no more railroad and the
    Surface Transportation Board has approved it--I may be wrong on
    this--then it's over.
        Senator Tester. Yes.
        Mr. Oberman. But there are a lot of lines which are, sort
    of, in abeyance or they're not being used, and the Board does
    have jurisdiction.
        Senator Tester. Yes. And they're not there being used, and
    oftentimes what they'll do is they'll store cars on them. The
    issue isn't that I don't--I mean, I think the bigger carriers
    have every opportunity to do that, and I think that they need
    to. I guess the question becomes, is, when do they become
    available for short-line railroads to be able to utilize? As my
    father said, ``the best way to ship weight is on the rails, not
    on the roads.'' And when would they become available for short
    lines to be able to use to keep that weight off the roads and,
    quite frankly, the traffic? Is--do you guys have any oversight
    over doing that? I mean, even if they're using the lines to
    store cars on, they're really not using the lines, if you know
    what I mean.
        Mr. Oberman. Well, that is--I hesitate to give you a
    definitive answer----
        Senator Tester. Yes.
        Mr. Oberman.--as a careful lawyer because I think that is a
    nuanced question. Certainly, the STB does have some very broad
    power which it doesn't use, shouldn't use, very often to direct
    railroads to provide service where it's not being done. And I
    think there are some situations, I think they're very fact-
    specific, where if there was a need shown, that STB could be
    influential in getting those decisions made, but I hesitate to
    go any further than that because I think it's----
        Senator Tester. You're a smart man.
        Mr. Oberman.--a very subtle legal question.
        Senator Tester. Thank you. Thank you very much.
        And thank you both for being here today.
        Senator Wicker. Thank you, Senator Tester.
        Senator Inhofe.
        Senator Inhofe. Thank you, Mr. Chairman.
        As I said in my introduction, Mr. Dearborn, you have quite
    a love for railroads and a lot of interest, and I know that
    you've looked at this position probably I suspect for a long
    period of time as something you'd like to do.
        Have you thought about what priorities you might be wanting
    to pursue in this position when you're confirmed?
        Mr. Dearborn. Thank you for the question, Senator. And,
    yes, I have. I think priority one is safety. I think this
    Committee, Amtrak's management, the Board, the administration,
    the Department of Transportation, I think everybody is focused
    on the safety of passenger rail. I don't think we can lose
    focus on that. I think that has to be job and mission priority
    number one.
        Increasing ridership, providing alternatives for consumers
    so that you're competitive with not only taking a plane, but
    that choice of whether or not to get on a highway I think is
    also a critical piece to it.
        Being smart about how the money is spent. I think Amtrak
    actually has been successful since 2007 in reducing its debt by
    about 60 percent, but it has some more to go. And I think as we
    increase ridership, as we focus on the quality of the product,
    the choice for the consumer, and always maintain our safety,
    then we probably have our priorities in line.
        Senator Inhofe. Well, I understand that Richard Anderson
    apparently has made a lot of statements and written about
    changes, implementing changes, efficiencies, in this very thing
    that you're talking about. Have you looked at anything that is
    being considered by him or some of his work in terms of things
    you would either agree or disagree with?
        Mr. Dearborn. I've been trying to make myself familiar
    with--with some of the--some of the changes that he has been
    proposing. I know several of them are controversial. I get the
    sense that he is trying to make sure that Amtrak runs
    efficiently. I think bringing on Ken Hylander as the new
    Executive Vice President to focus on instituting a safety
    management system was one of the best changes that could have
    been made for Amtrak. Again, I think it goes to safety. I think
    that was probably the most important.
        I know that there are other issues that--that I'll--I'm
    sure I'll be asked about or confront as a member of the Board
    if I was--if I'm confirmed. But I do think that the CEO and the
    management team, I think, has their priorities in place.
        Senator Inhofe. Mm-hmm. You know, you're used to the
    political system and some of the competition that's out there.
    I think you're going to be confirmed, and when you are, there
    are going to be a lot of competing efforts. For example, when
    the Senator from Nebraska talked about the California Zephyr,
    and, you know, I could care less about that----
        [Laughter.]
        Senator Inhofe----but I am interested in the Heartland
    Flyer.
        Mr. Dearborn. Heartland Flyer, yes, sir.
        Senator Inhofe. Which I'm sure comes as a surprise to you.
        [Laughter.]
        Senator Inhofe. So there are going to be times when we'll
    have opportunity. For the benefit of my friends on the
    Committee, the Heartland Flyer is one they use--it's really
    Dallas to Oklahoma City. Now, if you want to go anyplace on the
    West Coast, you have to go Tulsa to Dallas to Oklahoma City to
    Dallas and then start--if you want to go the other way, there
    is an effort and have been for as long as I remember in trying
    to get the Heartland route to go north of Oklahoma City. Now,
    that's still something that people are talking about. I don't
    know whether it's a consideration or not.
        I guess what I'd ask you is, What is the procedure to go
    through, other than just political influence, I guess, in
    trying to get changes made that will give better service for
    more people, which is what you're going to try to do?
        Mr. Dearborn. Right. Well, the procedure, from what I
    understand it, as I made myself familiar with--with how Amtrak
    operates, starts with the plans that management would put
    before the Board to talk about efficiencies, ridership, the
    ability to add new lines, the ability to continue to support
    the lines that it has. And I think there will be multiple
    factors, making sure that the safety of the lines are priority
    one.
        Senator Inhofe. Yes, but to make changes, though, is it
    like it would be on the Hill here, where you have an agenda.
    You, as a member, would put something on the agenda, a
    consideration of the change on one of these routes, and then
    they do research.
        Mr. Dearborn. Right.
        Senator Inhofe. I mean, do you know what the procedure is?
        Mr. Dearborn. So I'm--at this stage, I'm not a member of
    the Board. I'm looking forward to being confirmed. So I'm not--
    I'm not really familiar with exactly the process, how they--if
    they bring it up as new business, and the management then takes
    a look at it. But I'm happy to look into that for you and get
    back to you.
        Senator Inhofe. Well, that's good. And when that time does
    come, maybe we can visit. I'd like to become familiar myself,
    as would everyone at this table.
        Mr. Dearborn. Well, I'll learn about it and report back.
        Senator Inhofe. Sounds good to me.
        Mr. Dearborn. Thank you, sir.
        Senator Inhofe. Thank you very much, Mr. Chairman.
        Senator Wicker. Senator Inhofe, I would just observe that
    when you run for President, you're going to have some problems
    with those five electoral votes in Nebraska.
        Senator Inhofe. And can I remind you that I'm 83 years old?
        [Laughter.]
        Senator Wicker. That can't possibly be true.
        [Laughter.]
        Senator Wicker. Senator Peters.

                    STATEMENT OF HON. GARY PETERS,
                       U.S. SENATOR FROM MICHIGAN

        Senator Peters. Thank you, Mr. Chairman.
        Mr. Dearborn, you were a key member of the Trump campaign
    and the transition team. And I'm concerned because a number of
    campaign officials and advisors, as you know, are under
    investigation or arrested. And I need a better understanding of
    your interactions with these individuals and their activities.
        Did you ever meet George Papadopoulos during the campaign?
        Mr. Dearborn. I met him one time.
        Senator Peters. Did you--did you attend an event with him,
    or was he present at an event?
        Mr. Dearborn. It was at the Republican Convention in
    Cleveland, and I met him one time. It was just, ``How are
    you?'' ``Hi, I'm George.'' ``I'm Rick.'' That was it.
        Senator Peters. What is your understanding of his role and
    involvement in the campaign?
        Mr. Dearborn. I didn't recognize that he had any role in
    the campaign. I've read the news stories that have different
    accounts, but I didn't see him as having a role per se. He was
    on an informal advisory board on national security.
        Senator Peters. What was your involvement in organizing the
    April 2016 campaign event where Trump delivered a speech on
    foreign policy?
        Mr. Dearborn. Just to help coordinate with the Center of
    National Interest. They hosted the event. It was actually their
    event.
        Senator Peters. You helped coordinate it?
        Mr. Dearborn. I did. I just--I worked to coordinate it at
    the Mayflower.
        Senator Peters. Did you invite anyone to the event?
        Mr. Dearborn. I think we invited a wide range of foreign
    policy experts from across Washington and the country.
        Senator Peters. Did you personally invite anyone to the
    event?
        Mr. Dearborn. I don't believe I did. We left most of the
    invitations to the Center for National Interest.
        Senator Peters. Did you have any conversations about
    foreign policy with anyone at that speech?
        Mr. Dearborn. No. It was a foreign policy speech. We just
    listened to the speech.
        Senator Peters. But you didn't talk to anybody about it?
        Mr. Dearborn. We all left after the speech was done.
        Senator Peters. What was your role in developing the 2016
    Republican platform, if any?
        Mr. Dearborn. I did help. I worked with both the RNC and
    the campaign.
        Senator Peters. Did you play a role in determining the
    outcome of a platform on issues related to Russia, in
    particular, Russia's annexation of Crimea or providing military
    assistance to Ukraine?
        Mr. Dearborn. No, I didn't play a direct role.
        Senator Peters. Not a direct role? Did you play any role?
        Mr. Dearborn. I was advised of it, and that was basically
    the only role I played.
        Senator Peters. You played a role? You just listened to----
        Mr. Dearborn. I was told about it being an amendment that
    was coming up in the Subcommittee. I said make sure that we're
    consistent with whatever the then candidate had said on the
    campaign. There were six subcommittees, and I was moving in
    between all six.
        Senator Peters. So you're saying consistent with the
    campaign. So the platform dealing with annexation of Crimea and
    military assistance to Ukraine, that was consistent with what
    the candidate had said on the campaign?
        Mr. Dearborn. No, sir. I'm just saying what I said.
        Senator Peters. You said it should be consistent.
        Mr. Dearborn. I said--my only interaction was to tell folks
    that whatever--whatever we do, we should just be consistent
    with what our candidate has said.
        Senator Peters. And the platform was consistent?
        Mr. Dearborn. I'd have to get back to you on that and take
    a look at it directly. I--I can't remember the exact language
    and how that squared up with what he had said in prior
    speeches.
        Senator Peters. Did you attempt to connect Donald Trump or
    anyone in the Trump campaign with an official from the
    Government of Russia?
        Mr. Dearborn. No.
        Senator Peters. None whatsoever?
        Mr. Dearborn. No.
        Senator Peters. OK.
        Mr. Oberman, a March alliance for automobile manufacturers'
    letter to the Surface Transportation Board outlines serious
    service issues that have been impacting the movement of
    finished vehicles. The alliance states that manufacturers
    continue to experience a serious degradation in rail service
    due to a slowdown in the rail network, causing a substantial
    delay in getting vehicles to their customers. Manufacturers
    have also incurred significant costs to transport and to store
    vehicles and are fearful they may have to temporarily at times
    shut down assembly plants, which, of course, is an incredibly
    costly thing to do.
        It's not clear that the railroads necessarily have a plan
    to this issue, so I need to hear your commitment to dealing
    with this issue and how you would approach it.
        Mr. Oberman. Yes, Senator. Thank you.
        [Microphone malfunctions.]
        Mr. Oberman. There we go again.
        Of course, the Surface Transportation Board resolves
    service issues every day, as I mentioned earlier, on an
    informal basis. And, of course, shippers and manufacturers can
    formally bring matters to the Board. I'm not aware that there
    has been a formal complaint to the Board from the auto
    manufacturers. I know the Board is very aware of the concern,
    because we've talked about it, that you raised. And, of course,
    the Board has this--has yet unutilized due authority to
    instigate investigations involving service when there's a
    regional or national impact, which is an important threshold.
    And there's, of course, a number of other thresholds written
    into the provisions and under the new rules, which the Board
    did recently adopt, about what has to happen before you can do
    an investigation.
        If I am confirmed, I have committed to very carefully
    looking at that newfound, newly authorized authority to respond
    to these kinds of important issues when they meet that
    threshold, and that is something I'm very much committed to
    examining and make sure the Board fulfills the expectations
    that the Congress has set for it in this area.
        Senator Peters. Thank you.
        Senator Wicker. Thank you.
        Senator Cortez Masto.

               STATEMENT OF HON. CATHERINE CORTEZ MASTO,
                        U.S. SENATOR FROM NEVADA

        Senator Cortez Masto. Thank you.
        Welcome, gentlemen. Congratulations on your nominations. I
    want to continue a discussion some of my colleagues have
    started with the--and raising the importance of Amtrak's long
    distance passenger rail service. My communities in Nevada--
    Elko, Winnemucca, and Reno--rely on the Amtrak service provided
    by the California Zephyr Amtrak line, including the annual
    average of about 84,000 Nevada riders who travel on the line in
    a year.
        I just want to put it in perspective, and I know my
    colleagues have talked about this, but the importance to rural
    communities like mine. Mayor Putnam, of Winnemucca, which is a
    community of around 7,300 people, wrote me stating that,
    ``Rural Nevada needs your help. The Amtrak service, train
    service, is an important part of the economic vitality and
    social fabric of my community. Many of our veterans and seniors
    use Amtrak to access medical services in Reno and other
    areas.''
        And also I want to reference the line is vital to the Mayor
    of West Wendover, who was also inquiring about an Amtrak stop
    and how important Amtrak is to connecting communities in rural
    Nevada.
        And I bring this up because recently the Greyhound bus
    service has pulled out of this route, meaning there are even
    fewer towns that are able to connect to major populations for
    services as well.
        So, Mr. Dearborn, let me start with you because I
    appreciate the comments that you have made already. But let me
    ask you this because I know one of your priorities is
    increasing ridership, and I'm hoping that your focus is
    fruitful, but in rural Nevada, it's going to be very difficult.
        Mr. Dearborn. Right.
        Senator Cortez Masto. Right? Because you only have so many
    people living there. But I will note this, I know the
    California Zephyr line runs through five states. Of those five
    states, those Senators sit on this Committee.
        Mr. Dearborn. Right.
        Senator Cortez Masto. And you've heard from two of them.
        Mr. Dearborn. Yes.
        Senator Cortez Masto. So my goal is to stress the
    importance and get a commitment from you about the importance,
    not only the Zephyr line. Yes, we want to improve ridership,
    but at the same time, the connectivity it brings for our rural
    communities to needed services and other areas, I want to
    stress that.
        So can I ask you this, if you had a choice between lowering
    operating losses or shutting down a long distance line, what
    would you choose?
        Mr. Dearborn. I think as a national passenger rail system,
    I think the long distance lines are important. I hope I'm never
    faced with that decision, and even if I am, I would want to
    learn everything I possibly could. I think operating costs are
    important, but I think these long distance lines are an
    integral part as part of the national network.
        Again, my focus will be on increasing ridership, making it
    a choice that people want to take, trying to see what we can do
    about taking congestion off of our roads around our major
    cities. And all of that revenue gain I'm hopeful will help to
    continue the services that we have on our long distance routes.
        Senator Cortez Masto. So can I get a commitment at least
    that you're committed to protecting Amtrak's long distance
    service, including working with the Senators on the California
    Zephyr line?
        Mr. Dearborn. You have my commitment to work with you and
    your staff. The long distance service for me is an important
    piece of the national network, and I'll do everything I can to
    work with you to make sure to continue its vibrancy.
        Senator Cortez Masto. Thank you.
        Let me jump to another topic that's important for Nevada.
        Mr. Oberman, again thank you for being here.
        One concern in Nevada that we have, and it's unique,
    obviously, is there's this ill-conceived proposal to move and
    store nuclear waste into Nevada. One concern is the safety of
    transporting nuclear waste long distances by truck and rail
    through metropolitan areas and towns across the country. It
    would require the shipment of waste from 76 sites in 9,500 rail
    casks within 2,800 trains and 2,650 trucks hauling one case
    each to Yucca Mountain for over 50 years. Millions of Americans
    and a majority of congressional districts in the country would
    be impacted, and 300 miles of new railroad would be required,
    which brings in the STB.
        On the STB's website, when it talks about Yucca, it
    includes a question and answer section that quotes, and it
    says, ``Will the STB consider safety issues?'' and the answer,
    ``Absolutely. Although freight rail safety is the primary
    responsibility of the Federal Railroad Administration, the STB
    must take safety concerns into consideration. This includes
    both public safety and the safety of railroad employees. Safety
    concerns are usually raised and addressed in the STB's
    environmental review process.''
        And then I have some context. In a recent visit by some
    Yucca proponents, there were two train derailments in close
    proximity to Las Vegas within a 36-hour period of their tour
    where these outsiders to Nevada implied there were no safety
    issues. Well, I can tell you I have concerns based on what just
    recently happened.
        So I ask you, as a Member of the Surface Transportation
    Board, can I get a commitment from you that during your term on
    the Board, you will be transparent, consider these safety
    concerns, and work to include me and my office on any matters
    related to this flawed concept of siting any new rail lines in
    Nevada?
        Mr. Oberman. The answer is yes. If I could elaborate just
    very briefly.
        Senator Cortez Masto. Please.
        Mr. Oberman. One of the things that is drilled into the
    head of anybody in a railroad of any kind, and this was true at
    Metra, and Rick has talked about it, is safety. Safety is first
    in the railroad industry in every respect. If you can't be
    safe, you shouldn't be really--you shouldn't run the train. So
    I don't have to be impressed about the importance of safety;
    I'm already there.
        The STB has a broad mandate dealing with new lines, in
    their words, of public necessity and convenience, and it has an
    environmental mandate. And so, yes, safety issues are there for
    the Board's consideration and the licensing function of
    approving new lines. So, yes, they have to be considered. As I
    understand it, there's a long pending application from DOE
    which hasn't been voted on, and I would be called--may someday
    be called to vote on it, so I shouldn't express an opinion on
    how I would vote, but I'm certainly very sensitive that those
    issues have to be considered if and when the Board is ever
    called on to take action on that application.
        Senator Cortez Masto. Thank you. I appreciate that. And
    thank you. I notice my time is up.
        Thank you, Mr. Chairman.
        Senator Wicker. Thank you very much, Senator Cortez Masto.
        Senator Blumenthal.

                 STATEMENT OF HON. RICHARD BLUMENTHAL,
                     U.S. SENATOR FROM CONNECTICUT

        Senator Blumenthal. Thanks, Mr. Chairman.
        Good morning to both of you, and thank you for your
    service.
        Mr. Dearborn, I appreciate your comments in your testimony
    and then in response to questions about positive train control.
    I hope that you agree with me that it is an essential,
    potentially lifesaving technology that should be installed by
    all railroads meeting the December 31 deadline.
        Mr. Dearborn. Yes, sir; I do.
        Senator Blumenthal. And that you will commit to do whatever
    you can--I recognize you're only one member of the Board--to
    make sure it happens on Metra North and the MTA in my part of
    the country.
        Mr. Dearborn. If confirmed, Senator that would be a
    priority. I know how important that is to you and for the
    region.
        Senator Blumenthal. Thank you. I want to ask you some
    questions because you were very helpful to the Judiciary
    Committee, and I recognize that we're in a forum where it may
    seem unrelated to the issues of direct concern as a member of
    the Amtrak Board, but I feel an obligation to ask these
    questions, first because they bear on what you know about the
    Russian investigation, and then possibly on your personal
    qualifications for this role, and I want to make sure that you
    understand that they are meant in no way to impugn your
    integrity or be accusatory in any way.
        You worked for now Attorney General Sessions when he was a
    United States Senator. Was part of your service during the time
    that he met with Russian Ambassador Kislyak?
        Mr. Dearborn. So, Senator, I probably should have said this
    up front. I think you alluded to it, and I think Senator Peters
    asked me some questions about just was I at the convention, et
    cetera. But you're absolutely right, I did testify before
    congressional committees----
        Senator Blumenthal. And I was there when you testified
    before the Judiciary Committee in closed session.
        Mr. Dearborn. That's right. Yes, sir. So--so my response to
    you on that or any of these lines of questions would be that I
    respect the procedures and process of those committees. They
    chose to have me answer questions in a closed and executive
    session. That was their decision. I feel it's appropriate--
    you're a member of one of those committees--but I feel it's
    appropriate that the members of those committees, as well as
    their staff, should provide the insights to all of you on this
    Committee in terms of any questions that relate to this issue.
    I hope they provide you with every answer I provided. I
    answered every question that they asked me. And I feel like
    that's the appropriate forum. And I would defer to the
    membership and leadership of those committees and their staff
    to provide you those insights.
        Senator Blumenthal. Well, let me ask you simply whether you
    know certain individuals as you sit here today?
        Have you ever met Maria Butina?
        Mr. Dearborn. So, no, Senator, I haven't. But, again, I
    would just--at the risk of being redundant, I think any
    questions along those lines----
        Senator Blumenthal. I understand. I'm going to just ask you
    whether, as you sit here today, I'm not going to go into the
    content of any conversations you may have had with them, but
    just to kind of clear the air for your sake as well as the
    Committee's, you don't know and you've never met her.
        Have you ever met Aleksandr Torshin?
        Mr. Dearborn. No, Senator. But, again, these were questions
    that were asked in a closed setting, and I would refer you to
    the committees of jurisdiction.
        Senator Blumenthal. Well, I was in the closed setting.
        Mr. Dearborn. Yes, sir.
        Senator Blumenthal. And I'm going to be very blunt with
    you, the closed setting in the Judiciary Committee, in my view,
    was completely inadequate, the reason being, quite simply, that
    only the staffs of the committees were permitted to ask
    questions, none of the Senators on either side of the aisle,
    not your doing, again, not meant to in any way challenge or
    detract from your qualifications. I'm simply seeking some facts
    that may not have been raised and could not have been raised,
    and what's more, most importantly, the American people really
    deserve answers to some of these questions rather than it being
    in a closed, completely private, off-the-record environment. So
    I'm not asking for your response because you didn't have
    anything to do with it.
        Have you had any connection, or do you now, to an LLC by
    the name of Bridges? If you're unfamiliar with it, just say you
    don't.
        Mr. Dearborn. I don't know what that is. And, again,
    Senator, I would just refer back to my prior comment about
    these--this line of questioning.
        Senator Blumenthal. Have you had any role or ever had
    conversations about providing money to the Trump campaign
    through the NRA?
        Mr. Dearborn. No. And, again, these are questions that were
    asked in that same setting.
        Senator Blumenthal. Are you familiar or have you ever met
    with Konstantin Nikolaev?
        Mr. Dearborn. I have no idea who that is. And, again, these
    were questions that were asked in the same setting.
        Senator Blumenthal. You know, part of what I'm doing here
    is much for--it may not seem like it, but for your sake, is to
    establish that you had none of this knowledge or activities or
    connections, so that for me, when I decide how I vote, I know
    that you were not involved in any of these activities. I think
    that's important to establish.
        Mr. Dearborn. Senator, the only thing I would say is that
    you were there for the entire questioning period. All of these
    questions, and many more, were raised. I answered every
    question of the Committee. I've answered every question of
    every committee. I've been honest and truthful and forthright.
    I have no problem with any and all of my answers being provided
    to the members of this Committee. But I believe that it's--
    it's--it's wiser for me to defer to the members of those
    committees based on the processes and procedures of those
    committees on an ongoing investigation for the members of this
    Committee to work with them to receive any of this information
    that they would like. And I'm very hopeful that the members of
    these committees would wind up providing any and every answer
    to every question that I was asked to everyone here on the
    dais.
        So you'll just have to forgive me if I--if I'm not
    answering every question that you're posing because I feel like
    I've asked--I've been asked all of them and answered all of
    them on multiple occasions. And I hope all those answers are
    provided to you. But, again, it is in the middle of an ongoing
    investigation by three committees of Congress, and I want to be
    respectful of those committees.
        Senator Wicker. Senator Blumenthal, we can take another
    round, but at this point----
        Senator Blumenthal. I apologize, Mr. Chairman.
        Senator Wicker. Thank you very much, Senator Blumenthal.
        Senator Baldwin is recognized.

                   STATEMENT OF HON. TAMMY BALDWIN,
                      U.S. SENATOR FROM WISCONSIN

        Senator Baldwin. Thank you, Mr. Chairman.
        Mr. Oberman, I want to thank you for meeting with me
    earlier in the week, and I'd like to further discuss one of the
    issues we talked about, the issue of rail service and quality
    of that rail service. Members of this Committee have heard me
    discuss rail service issues many times before, and undoubtedly
    have heard many of the similar concerns that I've heard in my
    own state of Wisconsin.
        Businesses in Wisconsin rely on a freight rail system that
    works for everyone, and that means reasonable rates and
    service. When manufacturers pay more to transport their
    finished products, those higher costs are passed on to
    consumers. When agricultural producers located far distances
    from their markets, the same is true. And families are left
    with higher utility bills when energy companies are unable to
    receive dependable shipments.
        When we met, we had a chance to catch up about my Rail
    Shipper Fairness Act. That Act seeks to expand competition and
    restore balance to the regulatory environment. The STB can and
    should act on its own to fulfill one piece of that legislation
    aimed at providing competitive rail service. If confirmed, I
    would ask for your commitment to moving forward with the
    pending rulemaking on reciprocal switching. Can I have that
    commitment?
        Mr. Oberman. Yes, Senator. That is a pending matter. And I
    would really like to say that, first of all, the meeting with
    you was very enlightening, and I had asked to see the language
    in your bill, and your extremely able and efficient staff e-
    mailed it to me almost immediately, and I've got it sitting
    here, and I'm studying it, although I've had a lot of reading
    since you and I met.
        But I'm well aware that there is a competitive switching
    proposal on the Board's agenda; it's been pending there. And
    it's something that I want to study very closely and
    specifically the language you've suggested from several areas,
    both the substantive policy and whether and how far the Board
    can go in its rulemaking function as compared to needing
    legislation. So both of those are very much on my agenda to
    study carefully.
        Senator Baldwin. I appreciate the Board's focus on service
    performance of Class I railroads and have followed suit to ask
    the Class I railroads in Wisconsin for their plans to improve
    service for the rest of this year. I want to hear your reaction
    to high-profile disruptions like that of CSX last year. We saw
    firsthand what happens when a hedge fund runs a railroad. And
    so briefly, do you believe that the STB took appropriate action
    in response to the CSX service disruption?
        Mr. Oberman. I don't know all of the specifics of what the
    STB did. I know that the STB staff that deals with the daily
    resolution of complaints was in high gear and received many of
    the concerns and complaints about those disruptions, and from
    my understanding, was very active in trying to get them
    resolved. The STB did not initiate any formal process under its
    new statutory authority. And I don't know enough of the actual
    facts beyond what I read in the media, and I was well aware of
    the concerns that were going on.
        As to whether those disruptions would have, for example,
    met the standard of being of regional or national concern, they
    were certainly broad, broadly raised, and they may have. And as
    I said in my opening statement, I think the Board should
    proceed judiciously in initiating formal investigations. It's
    always better if you can resolve these disruptions informally.
    Whether those resolutions were adequate last year or not, I
    just don't have enough facts to say yea or nay.
        It's my understanding the situation has vastly improved
    since the disruptions occurred. Whether that was because CSX
    righted its own ship with or without the Board's help, I don't
    know, but, yes, they could--service, it's a continuing issue in
    the railroad industry, I think, because the system is so
    overloaded and interact, all the different forces have to
    interact. To me, the way I see it and what I learned at Metra,
    is there is sort of a constant constructive tension to make the
    system work right, and I think that's where the STB can play a
    constructive role.
        Senator Baldwin. Well, are there additional steps you would
    take the next time you see this level of disruption to prevent
    a crisis in the freight rail network?
        Mr. Oberman. Well, I would--if confirmed, I would certainly
    want to make sure that our staff, which my impression is, is
    quite able, is on top of those concerns immediately and making
    sure that the Board members are informed as to the level of the
    concerns so that if it's warranted to initiate more formal
    action, the Board is ready to do it, and that is something I am
    committed to keeping an eye on.
        Senator Wicker. Thank you very much, Senator Baldwin.
        Senator Duckworth is next.

                  STATEMENT OF HON. TAMMY DUCKWORTH,
                       U.S. SENATOR FROM ILLINOIS

        Senator Duckworth. Thank you, Mr. Chairman. And I thank you
    and the Ranking Member for holding today's hearing.
        And I also want to thank both nominees for being here
    today. I know that two of my colleagues have already introduced
    Mr. Oberman earlier this morning, so I won't go over all of his
    accomplishments, although they are numerous. I do want to say
    that I am very impressed with Marty's commitment to public
    service. Having spoken with him on a number of occasions, it is
    clear to me that he enjoys a passion for public policy and
    effective government.
        Given that, I want to discuss a little bit the fact that
    Illinois is the only State in which all seven Class I railroads
    operate. We have the second largest rail system in the Nation,
    and Chicago is by far the most dynamic rail gateway in America.
    The STB will benefit greatly from Marty's valuable perspective
    and experience. And welcome.
        Mr. Oberman. Thank you, Senator.
        Senator Duckworth. Thank you.
        Mr. Oberman and Mr. Dearborn, thank you for meeting with me
    privately to discuss rail and oversight issues important to
    Illinois.
        Mr. Oberman, are you familiar with Amtrak's 2015 Chicago
    Gateway Blue Ribbon Panel report?
        Mr. Oberman. I got that report when I was at Metra, and I
    was refreshed after you and I talked the other day, so yes.
        Senator Duckworth. Thank you.
        The same question for you, Mr. Dearborn, are you familiar
    with this report?
        Mr. Dearborn. Yes, Senator. Your staff sent that to me a
    few days ago, and I had a chance to read through it.
        Senator Duckworth. Thank you. For those in the room who may
    not be familiar, Amtrak established a Blue Ribbon Panel in 2014
    to identify infrastructure and operational improvements to
    address network congestion in Chicago, in the Chicagoland area,
    that adversely impacts Amtrak, commuter rail operations, and
    freight.
        Working with academia and external policy groups, the
    panel's 2015 report suggested that congestion problems in the
    region create an economic vulnerability of nearly $800 billion
    annually. The panel argued that enhanced operational
    coordination provides the best near-term opportunity to
    alleviate Chicago rail congestion. In other words, this is the
    low-hanging fruit on the path to modernizing our regional rail
    infrastructure. The panel recommended the use of a joint
    dispatch center to enhance operational coordination.
    Specifically, they recommended that the Chicago Transportation
    Coordination Office, which is a consortium of the major
    railroads in the region, work with other freight and passenger
    railroads to pursue this course of action.
        And, Mr. Chairman, with your permission, I would like to
    enter this report into the record.
        Senator Wicker. Is there objection?
        [No response.]
        Senator Wicker. Without objection.
        [The information referred to follows:]

            Report of the Amtrak Chicago Gateway Blue Ribbon Panel

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                     The Chicago Gateway Blue Ribbon Panel
    Thomas Carper joined the Amtrak board of directors in March 2008, and
    was reappointed in August 2013. He served as chairman of the board from
    January 2009 through March 2013. Mr. Carper was a small business owner
    from Macomb, Illinois, and served as mayor of Macomb from 1991 to 2003.
    He was appointed by the Amtrak board of directors to serve on the
    Amtrak mayor's advisory council and served as its chair from 2000 to
    2001. From 2003 to 2010, Mr. Carper was regional director of the West
    Central region for Opportunity Returns, a state economic development
    program. He received his B.A. degree from Western Illinois University,
    and served in the U.S. Army from 1967 to 1970 in both Thailand and
    Vietnam.

    Howard Learner is an experienced attorney and the founder of the
    Environmental Law & Policy Center (ELPC) in Chicago. As president and
    executive director, he is responsible for ELPC's overall strategic
    leadership, policy direction and financial platform. Before founding
    ELPC, he was the general counsel of Business and Professional People
    for the Public Interest, a public interest law center, specializing in
    complex civil litigation and policy development. Howard is also an
    adjunct professor at the Northwestern University Law School and the
    University of Michigan Law School, teaching advanced seminars in
    environmental and energy law and climate change solutions policy.

    Linda Morgan is a partner in the Washington, D.C. office of the law
    firm Nossaman, LLP, where her practice is focused on railroad
    transactions and disputes and associated legislative and policy issues.
    From 1994 to 2002, Ms. Morgan was chair of the U.S. Surface
    Transportation Board and its predecessor, the Interstate Commerce
    Commission, where she presided over railroad regulatory proceedings
    including mergers and rail-service matters in the Houston/Gulf Coast
    Region and elsewhere. Prior to joining the STB, Ms. Morgan served for
    15 years as counsel with the Senate Committee on Commerce, Science &
    Transportation, including seven years as general counsel. She received
    an A.B. degree from Vassar College, and a J.D. degree from the
    Georgetown University Law Center.

    John Francis ``Jack'' Quinn, Jr. is the president of Erie Community
    College. He was a member of the United States House of Representatives
    from 1993 to 2005, representing a Buffalo, New York area district and
    serving as chairman of the Railroads Subcommittee of the House
    Transportation and Infrastructure Committee. Prior to his election to
    Congress, he was a public school teacher in Orchard Park, NY; served as
    a member of the Hamburg, New York town council from 1982-1984; and was
    Hamburg town supervisor from 1985 to 1993. Mr. Quinn holds a B.A.
    degree from Siena College and an M.A. from the State University of New
    York, Buffalo. His father was a locomotive engineer.
                                  Introduction
        Amtrak's Chicago Gateway Blue Ribbon Panel was created on October
    28, 2014 by Amtrak President and Chief Executive Officer Joseph
    Boardman. The Panel was tasked with identifying infrastructure and
    operational improvements to address rail network congestion in the
    Chicago area that is adversely impacting Amtrak, commuter and freight
    train operations, and actions to advance those improvements.
        The members of the Panel have many decades of governmental and
    private sector experience in rail policy issues. Collectively, they
    have broad knowledge of the many challenges the Chicago rail network
    faces.
        Since the Panel's formation, its members have met with nearly 100
    stakeholders and subject matter experts. They include federal, state
    and local elected and governmental officials and their staffs; freight
    and passenger rail executive, operations and planning officials; and
    transportation policy and finance experts. The Panel's members have
    also reviewed numerous studies and analyses, some conducted at their
    request, that were prepared by rail industry associations and
    consultants, academic institutions, and Amtrak operations and planning
    staffs. Panel members have also visited Chicago area rail facilities
    for briefings on their operation and challenges.
        The Panel's purpose was not to write this report. Rather, its
    members hope that the Panel's analysis and recommendations will spur
    accelerated action to solve the challenges the report identifies, and
    implement the recommendations the Panel has made.
        That action needs to begin immediately. Construction of new rail
    facilities takes many years. Rail gridlock will only get worse if
    aggressive steps are not taken now. Expansion of Chicago's commuter and
    intercity rail passenger services is not possible until rail congestion
    in critical chokepoints is addressed. If nothing is done, the next
    Chicago rail crisis is inevitable--and will cost the Nation and the
    region much more than the cost of addressing the problem now.
                               Executive Summary
        Chicago is the hub of the United States' passenger and freight rail
    networks, and has the second largest commuter rail ridership of any
    U.S. city. Nearly every major North American industry, and consumers
    and rail passengers throughout the United States, depend upon efficient
    rail operations in Chicago for everything from keeping assembly lines
    in operation to getting Valentine's Day cards onto the shelves on time.
        In recent years, Chicago rail operations have experienced
    recurring, long term gridlock. The major causes are increased demand
    for rail service, inadequate infrastructure not designed to accommodate
    current operations, and limited operational coordination among
    Chicago's 10, separately-operated, freight and passenger railroads.
        Railroad and governmental stakeholders have taken significant steps
    to address these problems. The most notable is the 12-year old CREATE
    program, which has spurred joint infrastructure planning and
    investments that have already produced significant rail service and
    public benefits.
        Despite these efforts, delays and inefficiencies in Chicago's rail
    network are still at unacceptable levels, resulting in recurring and
    increasingly severe crises that paralyze rail service throughout the
    United States. Real time operational coordination among Chicago's
    railroads remains an elusive goal. Funding for essential investments is
    lacking: nearly all of the Federal and state grant programs that have
    provided the majority of the funding for CREATE to date have not been
    funded in recent years. Things will get much worse if nothing is done,
    since all projections point to increased demand for both freight and
    passenger rail service. There will be no quick fixes when the next
    crisis occurs.
        Unless additional actions to improve Chicago rail network
    infrastructure and operations begin immediately, Chicago's rail service
    will continue to deteriorate. Rail passengers and shippers will suffer
    increasing delays. Expansion of passenger and freight rail service will
    be impossible. The $3.6 billion in public benefits projected from
    completion of the remaining CREATE projects will never be realized.
    Instead, there will be a huge negative impact on national, regional and
    local economies that are heavily dependent upon Chicago's rail network.
        To avoid this outcome, the Chicago Gateway Panel makes the
    following recommendations:

      1.  Real time operational coordination among Chicago's railroads,
            including coordinated dispatching, is needed.

      2.  Railroads, including Amtrak, should continue efforts to improve
            operational performance within the Chicago terminal.

      3.  Adequate, sustained public funding must be provided for vital
            projects that will produce significant passenger rail and other
            public benefits.

      4.  The CREATE 75th Street Corridor and Grand Crossing Projects
            should be prioritized.

      5.  Additional investments should be made on the Porter, Indiana to
            Chicago Corridor.

      6.  Innovative financing approaches should be encouraged by RRIF loan
            program reforms.

      7.  Environmental review requirements that apply to rail projects
            should be consistent among transportation modes, coordinated
            among agencies, and prioritized for projects of national
            importance.

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        Union Pacific and Amtrak operations on Amtrak-owned trackage south
    of Chicago Union Station.
                 Chicago--The Crossroads of America's Railroads
    I. Beginnings
        Since 1848, when the Galena and Chicago Union Railroad laid down
    the first rails out of the city, Chicago has always been a railroad
    town. The coming of the railroads propelled Chicago to the unique
    position it has enjoyed--the crossroads of America's railroad system;
    the gateway between the East and West; and an economy more dependent
    upon rail transportation than any other U.S. city.
        By the middle of the 20th century, 38 railroads accessed Chicago,
    sharing six passenger terminals and interchanging traffic with each
    other at more than a score of major yards. None of these railroads ran
    through Chicago. Everything that passed through the city by rail--from
    passengers to pigs--changed trains there. Each railroad controlled the
    operation of trains over its own tracks and yards into and out of, but
    not through, the city.
        The rail network that serves Chicago today was largely designed in
    the 19th century to meet the needs of individual railroads' operations.
    Although railroads have made large investments in recent decades to
    modernize and upgrade that network and associated rail facilities, some
    still-in-use Chicago rail facilities date to 19th and early 20th
    centuries.
        The benefits from improving Chicago rail infrastructure, and of
    enhanced operational coordination among its railroads, have long been
    recognized. The ambitious 1909 Burnham Plan for Chicago, developed by
    Daniel Burnham, the architect who designed Washington, D.C.'s Union
    Station, proposed the consolidation of passenger stations and the
    construction of additional ``belt'' lines around the city on which
    tracks would be shared by all freight railroads. However, Burnham's
    vision for restructuring Chicago's rail network and operations was
    largely unrealized because the railroads were unable to reach
    agreements on enhancing and sharing rail facilities.
    II. The Importance of Chicago to Passenger Rail
        Chicago's importance as a national rail center is as great, if not
    greater, today than at any time in its history.
        Chicago is the most important hub in Amtrak's national network.
    Each day, 56 Amtrak trains--15 long distance trains and 41 state-
    supported corridor trains--originate or terminate in Chicago. These
    Amtrak trains operate through the Chicago area over six different
    routes, shown in the accompanying map, on tracks owned by seven freight
    railroads and Metra. In FY 2014, Amtrak's Chicago Union Station handled
    almost 3.4 million Amtrak passengers (11 percent of total Amtrak
    ridership), many of whom were connecting between Amtrak routes. They
    accounted for $206 million in ticket revenue, almost 10 percent of
    Amtrak's total nationwide. Most of the 1,400 Illinois residents that
    Amtrak employs work in Chicago.

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        Over the past decade, passenger rail service on Amtrak's Chicago-
    based Midwest corridors has experienced extraordinary growth in
    ridership, and huge leaps in the development of higher speed service.
    Much of this growth is attributable to strong regional and local
    support from elected and governmental officials of both political
    parties; longstanding partnerships between Amtrak and states that fund
    its Midwestern corridor services; and the unprecedented Federal funding
    provided in 2009-10 that illustrates what could be accomplished with
    adequate investment in passenger rail. The accomplishments to date
    include:

       Ridership on Chicago-based corridors in Illinois has
            increased 125 percent since the state provided funding to
            double service frequency in 2006.

       Federal and state investments in the Chicago-to-St. Louis
            and Chicago-to-Detroit corridors are producing the first over
            100 mph North American passenger rail service outside of the
            Northeastern United States.

       Investments in new intermodal stations in numerous
            communities in Michigan, Illinois, Missouri and Wisconsin are
            spurring local and regional economic development, along with
            enhancing connectivity and increasing ridership.

        Chicago is also the natural hub of the planned high-speed rail
    network developed by the Midwest Regional Rail Initiative (MWRRI). The
    MWRRI, a partnership of nine Midwestern states, will connect Chicago
    with 13 large Midwestern cities and many communities in-between via
    trains that will provide greatly increased service on existing as well
    as new routes, and operate at speeds of up to 110 mph.
        Chicago's Metra commuter rail service operates more than 700
    weekday trains on 11 routes throughout the Chicago area, six of which
    originate at Chicago Union station. Metra carries more than 83 million
    passengers a year, the second largest commuter rail ridership in North
    America (surpassed only by New York City).

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        Amtrak's Chicago-Los Angeles Southwest Chief and Metra BNSF Line
    commuter train at Hinsdale, Illinois

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    III. The Importance of Chicago to the National Freight Network
        Chicago also remains the most important freight rail hub in North
    America. It is the dividing point between the two major Eastern
    railroads--Norfolk Southern (NS) and CSX--and the two major Western
    freight railroads: Union Pacific (UP) and BNSF. The two major Canadian-
    based North American railroads--CN and CP--each have operations on both
    sides of the city.
        Approximately 500 freight trains per day operate in the Chicago
    area. These trains carry a third of all rail freight traffic in the
    United States, and approximately 60 percent of all rail intermodal
    traffic (shipments in trailers and containers that move by a
    combination of rail and truck and/or ship). Over 600 million tons of
    rail freight, valued at over a trillion dollars, move through Chicago
    each year.

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        Corwith Yard, BNSF's largest Chicago intermodal terminal, which
    BNSF trains reach via an at-grade crossing of CN's Chicago-Joliet line
    over which Amtrak's Chicago-St. Louis trains and Metra Heritage
    Corridor trains operate.
                              The Panel's Findings
    I. Recurring Gridlock Is Inevitable If Action Is Not Taken Now
        The consolidation of the North American railroad industry over the
    past few decades into six large railroads, and significant changes in
    rail freight operations and traffic flows, have changed Chicago's rail
    transportation role. The century-old rail facilities and established
    operating practices have struggled to adapt to the new patterns.
        For much of the 20th Century, declining freight and passenger rail
    traffic masked the shortcomings in Chicago's rail infrastructure and
    operations. But as both freight and passenger rail traffic began to
    surge in the 1990s, it quickly became clear that Chicago's rail network
    had insufficient capacity, and was poorly configured, to accommodate
    the growing freight traffic that moved through the city and increased
    demand for passenger rail service.
    A. Causes of Current Congestion
        A variety of factors have contributed to the gridlock that
    increasingly pervades Chicago's rail network.

       Today's long freight trains will not fit into the relatively
            short track segments between most Chicago area grade crossings.
            When another train is stopped ahead, freight trains must often
            be held miles away to avoid blocking grade crossings while they
            wait, which significantly reduces network capacity.

       Much of today's Chicago freight rail traffic does not move
            in individual freight cars on trains that terminate in the
            city. Instead, it travels through Chicago on unit trains
            carrying a single commodity (grain, coal and oil), and on run-
            through trains that operate directly between major yards or
            terminals of two different railroads. These through trains
            require a high level of operational coordination among multiple
            railroads in Chicago.

       Changes in freight railroad traffic flows over the past
            quarter century have disproportionately increased Chicago's
            rail freight traffic.

         Railroads have concentrated traffic, particularly
                growing intermodal traffic, on more efficient, higher
                volume routings via Chicago.

         Increased trade with and between Canada and Mexico has
                added new north-south rail traffic to Chicago's
                historically dominant east-west traffic flows.

         When low emission coal from Wyoming's Powder River
                Basin began moving in unit trains to Eastern utilities,
                Chicago was the logical gateway.

         Chicago is also the most direct routing for the unit
                oil trains that more recently have begun traveling from
                North Dakota's Baaken Shield to refineries and ports in the
                Northeast, triggering an over 21,600 percent increase in
                shipments of oil by rail (from just 3,000 carloads in 2006
                to 650,000 carloads in 2014).

       Demand for passenger rail service in Chicago has also grown
            significantly, reflecting national trends. Metra ridership has
            increased almost 50 percent since Metra began operation in
            1984. At Chicago Union Station, Metra's SouthWest Service has
            grown from 8 to 30 weekday trains since the early 1990s, and
            Metra's North Central Service, initiated in 1996, now operates
            22 weekday trains. While the number of Amtrak trains serving
            Chicago has increased only slightly--from 52 daily trains in
            2001 to 56 today--the number of Amtrak passengers at Chicago
            Union Station has grown more than 50 percent during the same
            period

        All projections point to increased future demand for rail service.
    States are pursuing a number of projects included in the MWRRI that
    would bring additional passenger trains, and higher speed service, to
    existing and new Chicago-based corridor routes. The volume of rail
    freight in the Chicago region is projected to increase 62 percent by
    2040--if Chicago's rail network can handle it. And if it can't, the
    consequences will be dire--for rail passengers and shippers, the rail
    industry, the Chicago region, and the entire country.
    B. Recent Crises
        Gridlock on Chicago's rail network reached critical levels during
    the winter of 2014, impacting rail traffic throughout the United
    States. It created a national rail transportation crisis that
    reverberated for much of the year, triggering Surface Transportation
    Board hearings and media coverage that have focused attention to
    Chicago's crucial role in the national rail network and the
    consequences of its inability to fulfill that role.
        Severe winter weather contributed to Chicago's 2014 rail crisis,
    but it was not the cause. As the Surface Transportation Board noted in
    a December 2014 decision:

            While congestion in the [Chicago] area was particularly acute
            last winter, it has been a recurring problem at this crucial
            network hub.

        Rail network congestion did not end when the last of the winter
    2014's snow melted. Amtrak passengers and many freight shippers
    continued to experience severe, recurring delays due to Chicago area
    congestion and resulting backups on rail lines leading into Chicago.
    During Fiscal Year 2014 (October 2013-September 2014), the six Amtrak
    long distance routes with the worst endpoint on-time performance were
    all among the eight long distance routes that originate and terminate
    in Chicago. The same pattern has continued during the first 11 months
    of Fiscal Year 2015: seven of the eight worst performing long distance
    routes originated and terminated in Chicago. During both periods, less
    than half of the trains on these poorly performing Chicago-based routes
    arrived on-time--and that is with a 30 minute tolerance before trains
    are deemed late. Trains on some routes have experienced multi-hour
    delays on a near daily basis, threatening the basic viability of these
    services.

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        Red is indicated by light gray.
    II. Significant Steps Have Been Taken to Address Chicago's Rail Crisis,
            But More Needs to Be Done
        Over the past 15 years, the railroad industry and governmental
    stakeholders have taken many actions to begin to address rail
    congestion problems in Chicago. Without these actions, the problem
    would be much worse today. However, funding constraints have precluded
    construction of vital investments identified more than a decade ago,
    and real time operational coordination among Chicago's 10 major
    railroads remains an elusive goal.
    A. CREATE Has Played a Critical Role in Improving Chicago's Rail
            Infrastructure, But Funding for Its Completion Has Not Been
            Identified
        The Chicago Region Environmental and Transportation Efficiency
    Program (CREATE) is a partnership among Chicago's freight and passenger
    railroads, the State of Illinois, the City of Chicago and the U.S.
    Department of Transportation. Established in 2003 by a task force
    convened in the aftermath of a 1997 snowstorm that paralyzed Chicago
    area rail traffic, CREATE has developed plans to improve Chicago rail
    infrastructure and worked to secure funding to implement them.
        The current CREATE plan includes 70 projects to increase rail line
    capacity, construct rail-rail and rail-highway grade separations, and
    make other improvements in five major rail corridors shared by multiple
    railroads that traverse the Chicago area. Twenty-nine projects have
    been completed or are under construction, at a cost of $1.2 billion.
    Railroads have provided approximately 20 percent of this amount, and
    the rest has come from federal, state and local governments.
        Because the vast majority of CREATE projects are on freight
    railroad-owned rail lines, some may view CREATE as a freight railroad
    project. That is a misperception. Eighteen CREATE projects benefit
    Amtrak and 20 benefit Metra. Seventy-five percent of Amtrak's Chicago
    area passengers travel over rail lines that will directly benefit from
    CREATE. As discussed below, completion of CREATE will reduce delays and
    travel time for both Metra and Amtrak passengers, and is essential for
    future expansion of passenger rail service in Chicago and the Midwest.
        Of the completed projects that benefit passenger rail, the
    Englewood Flyover is the most significant. Placed in service in October
    2014, the Flyover is an overpass that replaced an at-grade crossing
    between Metra's Rock Island Line, utilized by 78 weekday commuter
    trains, and NS's Chicago Line, over which 14 Amtrak trains and
    approximately 46 NS freight trains operate each day. Completion of the
    Flyover has eliminated over 4,000 minutes of commuter train
    interference delays to Amtrak trains annually. There has also been some
    decrease in delays to Amtrak trains from freight trains operating on
    the Chicago Line, which also benefit from elimination of the at-grade
    crossing, although further performance improvements are needed to
    realize the full benefits of the project. The Englewood Flyover also
    sets the stage for all of the other projects below that will benefit
    passenger rail.
        CREATE will produce other significant public benefits. It will
    eliminate 25 Chicago area highway grade crossings, seven of which are
    ``911 Critical'' crossings heavily used by emergency vehicles, and
    reduce traffic delays at many others. It will also generate significant
    safety and environmental benefits in both the Chicago region and
    throughout the United States; fewer grade crossing accidents; reduced
    locomotive emissions and noise from stopped trains; and more freight
    traffic moving by rail rather than by truck.
        The 41 remaining CREATE projects will require an estimated $2.6
    billion in additional funding (in current dollars)--and Chicago's rail
    infrastructure needs have grown and evolved in the 12 years since the
    CREATE project was developed. Funding for these projects has not been
    identified--and, as discussed below, nearly all of the Federal and
    state programs that have provided the majority of CREATE funding to
    date currently have no additional funding available.
    B. The Indiana Gateway Project Is an Important First Step in Upgrading
            the
            Critical Porter-Chicago Corridor, But Additional Investments
            Are Needed
        The approximately 40-mile segment of Norfolk Southern's Chicago
    Line between Porter, Indiana and Chicago is a critical passenger and
    freight corridor:

       It is the entry into Chicago for 10 daily, state-supported
            Amtrak trains from Michigan, and the two principal Amtrak long
            distance routes from the Northeast: the Lake Shore Limited from
            New York/Boston, and the Capitol Limited from Washington, D.C.

       It is one of the most important rail freight corridors in
            the United States, serving as the western end of NS's primary
            Northeast-Chicago route and of CP's and CSX's routes from
            Michigan and Eastern Canada and handling approximately 90 daily
            freight trains.

        The Federal Government and the state of Michigan have invested more
    than $650 million to upgrade passenger rail service between Detroit and
    Chicago. These investments are transforming the Amtrak and Michigan-
    owned portion of the corridor between Dearborn, Michigan and Porter,
    Indiana into a high speed line used predominantly by passenger trains
    that already boasts the longest stretch of 100-plus mph track in North
    America outside of the Northeast. When all upgrades are completed,
    trains will be able to operate 110 mph over 77 percent of the 233 miles
    between Dearborn and Porter. The Michigan Department of Transportation
    projects that upgrading the entire route from Detroit to Chicago would
    reduce trip times by almost two hours, and plans to increase Chicago-
    Detroit/Pontiac service from three to 10 daily round trips by 2030.
        But as the map below depicts, when 110 mph Chicago-bound trains
    from Michigan reach Porter today, they must put on the brakes. Maximum
    speed between Porter and Chicago is 79 mph. Stopped freight trains
    waiting to enter the Chicago terminal are frequently backed up on one
    of the two main tracks for many miles. This results in both east- and
    westbound trains alternating use of the single remaining track in this
    ``last mile''--actually 40 mile--segment of what will soon be an almost
    entirely high speed passenger rail corridor.

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        The Indiana Gateway Project, which is currently under construction,
    is an important first step in upgrading rail infrastructure on the
    portion of the Porter-Chicago Corridor within Indiana. The project will
    construct seven miles of third track and crossovers at seven locations,
    and add or improve four sidings on or adjacent to the Corridor, to
    increase capacity and operational fluidity. However, it will not
    increase speeds, or provide capacity for planned additional passenger
    trains. Unless additional investments are made to address impediments
    to improved, expanded, higher speed service between Porter and Chicago,
    the benefits of the significant public investment in the Detroit-to-
    Chicago Corridor will not be realized.
        Michigan is working with the Federal Railroad Administration on a
    Tier I Environmental Impact Statement and Service Development Plan,
    scheduled for release this year, that will identify the preferred route
    for a passenger-only, 110 mph, ``South of the Lake'' rail line between
    Porter and Chicago. In conjunction with the agreements that provided
    Federal funding for the Englewood Flyover and Indiana Gateway Projects,
    Amtrak, NS and Illinois/Indiana entered into Development Rights
    Agreements that give Amtrak the right to construct tracks dedicated to
    passenger/high-speed rail service within the NS right-of-way and on NS
    property between Porter and 21st Street in Chicago. These rights would
    facilitate incremental development of passenger only tracks along the
    Porter-Chicago Corridor, benefiting both passenger and freight service.
    But there is no money for additional investments beyond the Indiana
    Gateway Project.

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    C. Operational Coordination Among Chicago Railroads Has Improved, But
            Real Time Communication Must Be Enhanced
        Train dispatching and communications practices among Chicago-area
    railroads were designed for an era in which each railroad operated in
    relative isolation, running trains predominantly over tracks it owned
    and terminating most trains in its own yards. Despite recent
    improvements, they are hard pressed to meet the demands of today's
    Chicago rail environment: run-through trains operating over multiple
    railroads; most freight car classification performed in a small number
    of shared yards; and record volumes of freight traffic that can quickly
    produce gridlock conditions.
        Train dispatching in Chicago is very different from air traffic
    control. The railroad dispatchers responsible for the movement of
    trains over Chicago's rail network work for 10 different railroads.
    They are physically located in six different cities where those
    railroads operate national or regional dispatching centers. Five of
    these centers are in the Chicago area, but all are in different
    locations.

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        Three miles northwest of Chicago Union Station, Tower A-2,
    constructed in 1901, controls the movement of over 350 Amtrak, Metra
    and freight trains each weekday with a switching system that was
    installed in 1932. The open flames are used to keep switches free from
    ice because the tracks are not equipped with switch heaters.

        Not included in these figures are the block operators who sit in
    towers beside the tracks--many built more than a century ago--and use
    hand thrown levers to control the movement of trains over interlockings
    visible from the towers where two or more railroad lines cross. Since
    the development of centralized traffic control in the 1930s, virtually
    all of the interlocking towers that once controlled intersecting tracks
    have been replaced, and only 91 remain in service throughout the United
    States. Thirteen are in Chicago.
        By contrast, the controllers who direct the movement of planes in
    and out of Chicago's O'Hare Airport work for a single entity. Most sit
    next to each other in the same room. They communicate constantly
    regarding ``hand-offs'' of planes from one controller to another, and
    handle planes from all of the airlines serving O'Hare.

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        Amtrak's Cardinal, operating into Chicago over UP, passes the IHB-
    operated tower at Dolton Junction that controls the interlocking ahead.

        In recent years, a number of steps have been taken to enhance
    operational coordination among Chicago's railroads. The Chicago
    Transportation Coordination Office (CTCO), created by Chicago's
    railroads in the aftermath of the 1999 crisis, hosts twice daily
    conference calls among railroads and produces a daily scorecard with
    Chicago rail network performance metrics. The railroads have also
    agreed that CTCO can require railroads to reduce freight traffic
    volumes in yards and on routes where metrics indicate that congestion
    exceeds agreed-upon thresholds. The Chicago Common Operating Picture
    (COP), developed as part of CREATE, integrates information from
    railroads' individual dispatch systems to enable dispatchers from all
    participating railroads to access graphic displays depicting the
    current location of trains operating on participating railroads
    throughout the Chicago area.
        However, CTCO does not have any authority to coordinate rail
    operations. And means have not yet been developed for efficient, real
    time communication among the ten dispatching centers that control train
    operations in Chicago.
        Adjoining segments on key Chicago freight corridors are dispatched
    by multiple railroads. Dispatchers controlling these segments need
    immediate notice of problems occurring on portions of the corridor
    controlled by other railroads, such as a broken down train at a
    critical chokepoint, so that they can activate contingency plans to
    hold or detour trains on their railroad before they enter a point of no
    return with resulting gridlock. Likewise, a dispatcher preparing a path
    for a high priority train that is stopped on another railroad needs to
    know not just where the train is (which the Chicago Common Operating
    Picture will show) but when it is likely to begin moving again, and
    whether it is likely to be delayed further before its arrival on the
    dispatcher's territory. But unlike O'Hare's air traffic controllers,
    the only way for a Chicago railroad dispatcher to obtain this
    information today is to pick up the phone and call the dispatcher on
    the other railroad--and hope that the call will be answered.
        The large number of dispatchers--all in different locations--who
    may be involved in the movement of a single train through Chicago is
    illustrated by the 29-mile route segment between the Amtrak station in
    Dyer, Indiana and Chicago Union Station over which Amtrak's New York-
    Chicago Cardinal, and state-supported Indianapolis-Chicago Hoosier
    State, operate. As shown in the table below, seven dispatchers or block
    operators working for seven railroads in seven different locations
    control the movement of Amtrak trains over just these 29 miles.

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    D. Railroads Have Taken Actions to Alleviate Congestion
        In addition to the CREATE and Indiana Gateway programs, Chicago's
    railroads are also making investments and operational modifications,
    and undertaking additional planning efforts, aimed at improving Chicago
    area operations and alleviating delays caused by congestion.
        Amtrak has taken a number of steps aimed at improving the
    performance and reliability of Amtrak trains serving Chicago, and of
    the tracks and facilities in and around Chicago Union Station that
    Amtrak controls. Among other things:

       Amtrak utilized over $100 million in Federal funding, made
            available under the 2009 stimulus act, for Chicago Union
            Station investments, included replacing and upgrading tracks,
            switches, and switch heaters and renovating or repairing
            buildings used for equipment maintenance. Included in the
            project was a new control center in Chicago Union Station that
            is responsible for dispatching the over 500 Amtrak, Metra and
            freight trains that operate each weekday over Amtrak-owned and
            operated tracks in Chicago.

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        Amtrak's new Chicago Control Center

       Amtrak has implemented new operating practices to facilitate
            on-time departures from Chicago Union Station even when trains
            arrive late. They include reducing how long a train departing
            from Chicago will be delayed to enable connecting passengers on
            late arriving trains to make their connections, and changing
            equipment maintenance procedures to minimize switching that
            adds time and increases the potential for delays.

       Amtrak has also added additional equipment sets to Chicago-
            based routes during periods when delays have been so severe
            that trains arrive too late to be serviced in time for same day
            departures.

       Amtrak plans to co-locate the different functions
            responsible for managing day-to-day Chicago operations, such as
            equipment servicing and crew management, and has increased real
            time monitoring of train performance on host railroads' Chicago
            area lines.

        Improvements have also been made in Chicago commuter rail
    operations and infrastructure. In Joliet, the terminus of Metra's Rock
    Island District trains has been shifted to a new platform east of UD
    Tower, which controlled the interlocking between the east-west Rock
    Island Line and the four north-south tracks used by Amtrak, BNSF and UP
    trains. This eliminates the need for 46 weekday Metra trains to cross
    the interlocking--and for the 1912 built-tower and its antiquated
    switching system, which have been retired.

       Chicago's freight railroads have taken a number of actions
            that have reduced the volume of freight traffic moving through
            Chicago's major chokepoints. They have rerouted some freight
            traffic that passed through Chicago to other East-West
            gateways. They have constructed new intermodal terminals, and
            expanded existing facilities, at locations outside of Chicago's
            core (some hundreds of miles away) to handle traffic that
            formerly originated, terminated, or was switched between trains
            in Chicago.

       Freight railroads have also acquired Chicago-area rail lines
            and trackage rights over other railroads' lines, and upgraded
            existing lines, to increase network capacity and avoid
            bottlenecks. The major freight railroads have also formed an ad
            hoc panel, comprised of senior/retired operations and planning
            officials with expertise with Chicago rail operations, to
            identify and make recommendations for improvements.

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        Metra Rock Island District train crosses tracks used by Amtrak
    Chicago-St. Louis trains, and BNSF and UP freight trains, at UD Tower
    in Joliet before Metra platform was relocated.

        Many of the steps individual railroads have taken in response to
    Chicago rail network delays will enhance efficiency and improve
    service. But others, although necessary, will impose significant
    monetary and other costs. For example, when Amtrak must assign
    additional equipment sets to Chicago-based routes, equipment
    maintenance costs increase and riders and revenues that could be
    generate from deploying the equipment on other routes are lost. Moving
    rail operations away from Chicago means that the region loses railroad
    jobs, such as conductor and engineer positions in Chicago area yards.
    Since Class I railroad employees have average compensation and benefits
    of $115,000 a year, the loss of these skilled jobs negatively impacts
    Chicago's economy, and state and local tax revenues.
    III. Two CREATE Projects--75th Street and Grand Crossing--Are Key to
            Alleviating Gridlock and Improving and Expanding Passenger
            Service
        Two nearly shovel-ready CREATE projects for which no funding has
    been identified would eliminate some of the major chokepoints on
    Chicago's rail network. They would also set the stage for planned
    expansion of Amtrak and commuter rail service, and the development of
    high speed passenger service throughout the Midwest.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    A. The 75th Street Corridor Is Chicago's Biggest Chokepoint
        The 75th Street Corridor in South Chicago, depicted in the map
    below, is the most congested rail chokepoint in the Chicago area, and
    perhaps in the entire United States.
        Ninety freight trains a day operated by four Class I railroads--
    CSX, NS, UP and CP--and the BRC operate along the 14 miles of rail
    corridors that crisscross this four square mile area bounded by 69th
    and 100th Streets, the Dan Ryan Expressway, and Central Park Avenue.
    These freight trains share track with 30 Metra SouthWest Service trains
    each weekday, and the daily Chicago-Indianapolis round trip provided by
    Amtrak's Indiana-supported, quad-weekly Hoosier State and tri-weekly
    Chicago-to-New York Cardinal.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Metra SouthWest Service train on 75th Street Corridor's east-west
    line crosses Forest Hill Junction while freight train on north-south
    CSX line waits.

        As the map shows, nearly all of the freight trains that operate on
    the primary freight route along the 75th Street Corridor--which runs
    from west to east, and then turns south--must crawl through three major
    chokepoints within a two-mile maze of tracks while other trains wait.

       Forest Hill Junction, near the west end of the east-west
            line that parallels 75th Street, is the rail-to-rail grade
            crossing where CSX's north-south Western Avenue Corridor, used
            by 35 daily freight trains, crosses the east-west line at
            grade. When a freight train is operating through Forest Hill on
            the north-south line, the 80 daily freight and passenger trains
            on all four tracks of the east-west line must wait--and vice
            versa.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Metra SouthWest Service passes through two track funnel at Belt
    Junction.

       Belt Junction, less than a mile to the east, is the center
            of the maze. There, five tracks from the east and four tracks
            from the west funnel into just two tracks, as shown on the map.
            Making matters worse, all of the 30 Metra trains, and nearly
            all of the 50 freight trains, that operate on the east-west
            line through Belt Junction must make a crossover move there
            from a track on one side of the right-of-way to a track on the
            other side. Because of these crossover moves, at most times
            only a single train can operate through Belt Junction.

       At the east end of the east-west corridor, eastbound freight
            trains--whose rear cars are still passing through Belt
            Junction--make a sharp turn south and enter 80th Street
            Interlocking. There, NS, UP and BRC freight trains, and
            Amtrak's Hoosier State/Cardinal, must thread their way through
            a spaghetti-like intersection of multiple rail lines that is
            even more complex than Belt Junction.

        Two additional complications make a bad situation even worse:

       The distance from Belt Junction to both Forest Hill Junction
            and 80th Street Interlocking is shorter than the 7000-plus foot
            length of most of today's freight trains. That means that
            eastbound freight trains generally must wait west of Forest
            Hill Junction, and west bound trains must often be held as far
            away as 80th Street Interlocking, until the dispatcher is
            certain that both Forest Hill Junction and Belt Junction will
            be clear for the train's passage.

       The maximum speed on the sharp curve where the west-east
            line turns south is 10 miles per hour, and trains are limited
            to that speed until the entire train has passed through the
            curve.

        The end result of these obstacles is that it can easily take a long
    freight train 15-20 minutes to make the two-mile trip between 80th
    Street Interlocking and Forest Hill Junction--and that a single freight
    train will preclude most other train movements through each of those
    interlockings for as long as 15 minutes.
        Imagine a crowded interstate highway on which all traffic must stop
    and wait at a traffic light-controlled intersection with another
    interstate highway; funnel into a single lane shared by cars traveling
    in both directions; and then travel at speeds of 10-25 mph for almost
    three miles--while all traffic in the other direction sits awaiting its
    turn. That is Belt Junction.
        Four separate CREATE projects, with a projected total cost of
    approximately $1 billion, would eliminate the conflicts between trains
    on different routings that affect nearly all trains operating through
    the 75th Street Corridor. These projects, depicted in the map above,
    would among other things:

       completely reconfigure existing tracks at Belt Junction and
            80th Street;

       add additional tracks along most of the Corridor;

       construct a flyover at Forest Hill Junction to separate the
            east-west and north-south lines; and

       construct the Metra flyover discussed below.

        When completed, the 75th Street Projects would almost entirely
    eliminate the need for trains to cross over other rail lines at grade
    at the 75th Street Corridor's three chokepoints, increasing the
    efficiency of freight movements by approximately 40 percent. They will
    also eliminate a ``911'' rail-street grade crossing at 71st Street used
    by emergency vehicles, and more than 80,000 hours of driver delay
    annually.
        The ``before and after'' maps below illustrate the changes in the
    track configuration of the east-west line that will result from
    building the Metra flyover, untangling Belt Junction, and building the
    overpass at Forest Hill Junction. As the maps indicate, the number of
    trains that can simultaneously operate through both Belt Junction and
    Forest Hill Junction increases from one, or at most two, to six or
    seven, producing a large increase in Chicago rail network capacity.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    B. Project P2, Which Would Allow Metra SouthWest Service Trains to
            Shift to LaSalle Street Station and Reduce Metra-Freight
            Conflicts, Is a Key Element of the 75th Street Project
        One of the 75th Street Corridor Projects--CREATE Project P2--is
    very important to both the reliability and future expansion of
    passenger rail service in Chicago.
        Project P2, whose estimated cost is approximately $250 million,
    would construct a new flyover connection to Metra's Rock Island Line at
    Union Avenue on the east end of the 75th Street Corridor, and a second
    Metra track along the southwestern portion of the 75th Street Corridor.
    The flyover would enable Metra SouthWest Service trains, which
    currently terminate at Chicago Union Station, to operate into less
    crowed LaSalle Street Station instead. This would alleviate capacity
    constraints that impair existing Amtrak and Metra services at Union
    Station, and preclude their expansion.
        Removing 30 SouthWest Service trains, most of which operate during
    peak commuter hours, from Union Station would benefit both Amtrak and
    Metra. It would reduce congestion on the crowded four-mile approach
    from CP-518 (40th Street) to Union Station; on the station's south side
    tracks and platforms that SouthWest Service trains share with Amtrak
    trains and Metra's BNSF and Heritage Corridor routes; and within the
    station itself. Overcrowding in Union Station is so severe that, when
    there are significant commuter rail delays, pedestrian entrances must
    be closed to alleviate unsafe conditions. Lack of capacity at Union
    Station precludes expansion of Amtrak and Metra services, and
    advancement of the Midwest High Speed Rail Initiative. The single track
    segment of Metra's SouthWest Corridor that would be double tracked by
    Project P2 is an additional impediment to future expansion of Metra's
    fastest growing route.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Chicago Union Station.

        Completion of Project P2 would also be a first step in alleviating
    freight train congestion on the 75th Street Corridor. By bringing Metra
    trains onto the south side of the Corridor's east-west line, the new
    flyover would eliminate the Metra crossover moves at Belt Junction,
    making it possible to operate both a Metra train and most freight
    trains through Belt Junction simultaneously.
        Reducing freight train delays along the 75th Street Corridor would
    also alleviate freight train backups on other rail lines from which
    trains feed into it. Many of the stopped freight trains that often tie
    up one of the two main line tracks approaching Chicago on NS's Chicago
    Line, resulting in all Amtrak and freight trains on the Porter-Chicago
    Corridor sharing a single track, are awaiting clearance to enter the
    75th Street Corridor.
    C. The Grand Crossing Project Would Improve or Replace Three Poor
            Performing Amtrak Routes into Chicago
        The Grand Crossing Project (CREATE Project P4) includes the
    construction of:

       a new connection between CN and the NS Chicago Line at Grand
            Crossing in South Chicago;

       additional track capacity on the Chicago Line between Grand
            Crossing and Englewood; and

       a new connection between Englewood and the Metra line
            currently used by Metra South West service trains that runs
            parallel to the Chicago Line into Chicago Union Station.

        The Grand Crossing Project would address major deficiencies and
    delays on three of Amtrak's Chicago area routes:

       The Grand Crossing connection would enable the six daily
            Amtrak trains that use CN's St. Charles Air Line Route to
            access Chicago Union Station--two daily state-supported
            Chicago-Carbondale round trips, and the daily Chicago-New
            Orleans City of New Orleans--to shift to the NS Chicago Line at
            Grand Crossing. This shift would reduce trip times by
            eliminating the slow, time consuming backup move these trains
            must currently make on the heavily utilized tracks south of
            Union Station. Shifting these six Amtrak trains to the NS
            Chicago Line would also eliminate existing conflicts with Metra
            trains at 16th Street interlocking, where the St. Charles Air
            Line Route crosses the route of Metra's Rock Island Line into
            LaSalle Street Station. These Amtrak-Metra conflicts, and
            resulting train delays, will increase when the P2 Project,
            which will shift Metra's 30 SouthWest Service trains to LaSalle
            Street, is completed.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Carbondale-Chicago train on St. Charles Air Line passes over Port
    Huron-Chicago train south of Union Station before beginning backup move
    into Union Station via connecting track (out of picture to left).

       The additional track capacity on the NS Chicago Line between
            Grand Crossing and Englewood will benefit the 14 daily Amtrak
            trains and 46 daily freight trains that currently operate over
            this segment.
       The new connection would also facilitate a reroute of the
            Cardinal/Hoosier State between Thornton Junction and Chicago
            Union Station onto the St. Charles Air Line Route south of
            Grand Crossing and the NS Chicago Line from there into Union
            Station. This routing would avoid major freight chokepoints on
            the current route, and has considerably fewer dispatcher
            handoffs and grade crossings.
    D. Completion of the 75th Street and Grand Crossing Projects Would Make
            Midwest High Speed Rail Possible
        Perhaps most importantly, the completion of the 75th Street and
    Grand Crossing Projects would set the stage for implementation of MWRRI
    plans to develop high speed rail service between Chicago and points in
    Michigan, Indiana and Ohio. These projects, and the proposed Chicago
    East Corridor Project that is a component of the Chicago-Detroit High
    Speed Project, would create the operational equivalent of a new
    passenger route into Chicago for high speed and other intercity
    passenger trains from the East, while increasing capacity and fluidity
    for freight trains that would operate over separate tracks.
        The 2011 Development Rights Agreement (DRA) for the Englewood
    Flyover among Illinois, Norfolk Southern and Amtrak provides for a
    doubling in the number of intercity trains operating over the NS
    Chicago Line between Grand Crossing and Chicago--from the current 14 to
    28--following completion of the 75th Street and Grand Crossing
    Projects, and for a joint study to determine whether there is
    sufficient capacity for further increases in the number of intercity
    trains. These additional passenger trains are made possible by:

       the shift of Metra SouthWest Service trains from Metra's
            line north of 75th Street to the Rock Island Line following
            completion of 75th Street Project P2; and

       construction of the new connection from the NS Chicago Line
            at 61st Street (Englewood) to the Metra line, and additional
            track capacity between Grand Crossing and 61st Street, that are
            included in the Grand Crossing Project

        These improvements, depicted in the map below, would allow Norfolk
    Southern freight trains that currently share the NS Chicago Line with
    Amtrak to shift to the Metra Line north of 61st Street.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Completion of these projects, and of the proposed Chicago East
    Corridor Project, would create the operational equivalent of a
    continuous two-track, eight-mile passenger rail corridor between Grand
    Crossing and 21st Street. The passenger corridor would connect on its
    western end with the Amtrak-owned tracks leading into Union Station. At
    Grand Crossing, it would connect with two current Amtrak routes--the CN
    line to Carbondale/New Orleans, and the NS Chicago Line to Detroit and
    the Northeast--as well as the Commonwealth Edison right-of-way, an
    abandoned rail line that is now utilized for power transmission lines,
    on which the South of the Lake high speed passenger tracks to Porter
    could be constructed. Deficiencies on existing passenger and freight
    routes into Chicago would be alleviated, and a faster, unencumbered
    pathway into Chicago for expanded and high speed intercity passenger
    rail service would be created.
    IV. Lack of Adequate, Reliable Public Funding Impedes Efforts to
            Address Chicago's Rail Gridlock
        CREATE and other investments in Chicago's rail infrastructure,
    produce both private and public benefits. For the private freight
    railroads, improved rail infrastructure that reduces transit times and
    delays results in significant operational and financial benefits.
    Members of the public benefit from improved and expanded passenger rail
    service; fewer trains blocking grade crossings; reduced emissions from
    idling and slowly moving locomotives; retention and creation of Chicago
    area jobs and other economic activity; and enhanced national and
    regional competitiveness will produce significant benefits to the
    general public.
        What makes major transportation projects like CREATE work is the
    willingness and ability of both the private and public sectors to
    provide funding based upon the public and private benefits the project
    generates. Public funding--federal, state and local--has covered
    approximately 80 percent of the $1.2 billion spent or committed for
    CREATE's costs to date. Railroads have provided the remaining 20
    percent.
        However, the completion of CREATE, and other public-private
    partnerships to enhance rail infrastructure of national importance, is
    in jeopardy because of the lack of public funding to match private
    investments. Only one of the five Federal and state grant programs from
    which funding for CREATE has been cobbled together is currently funded.
        CREATE has received approximately $335 million in Federal funding
    from four separate Federal programs. Of these programs:

       The High Speed and Intercity Passenger Rail Program, which
            funded a $133 million grant for the Englewood Flyover (and also
            provided $71 million for the Indiana Gateway Project) has not
            received any additional funding, other than $42 million in
            reprogrammed funds, since 2010.

       The Projects of National and Regional Significance Program,
            which provided $100 million for CREATE, has not received any
            appropriations since 2009.

       The Rail Line Relocation Program, which provided a $1.9
            million grant, has not been funded since 2011.

       Transportation Investments Generating Economic Recovery
            (TIGER), which provided $100 million for CREATE, received a
            $500 million appropriation for 2015 grants. The United States
            Department of Transportation received pre-applications totaling
            $14.5 billion for this funding, 29 times the level available.
            The FY 2016 House Transportation Appropriations Act would
            reduce TIGER funding to $100 million nationwide, and limit
            grants to a maximum of $15 million per project.

        Significant CREATE funding--over $400 million--has also been
    provided by the State of Illinois. Most of Illinois' investment came
    from the most recent (2009) Illinois capital infrastructure funding
    bill, all funding from which has been committed.
        Chicago's rail network is approaching a critical juncture. The need
    for additional investments becomes more obvious with every crisis, and
    those investments would produce significant public and private
    benefits. But unless additional public funding is made available for
    projects of national significance such as CREATE, and the development
    of high speed and intercity passenger rail, those investments will not
    be made--and the cost will be enormous.
    V. If Congestion in Chicago's Rail Network Is Not Addressed, Rail
            Passengers and Shippers, the National and Regional Economies,
            and the Environment Will Pay a Very High Price
        The nationwide rail crisis that began in Chicago in winter 2014
    demonstrated what the future holds if Chicago's rail service issues are
    not addressed. While freight shippers and rail passengers will suffer
    the most direct impacts, national and regional economies and the
    environment will be harmed as well.
        The Panel asked Frost & Sullivan (F&S), a global consulting company
    with expertise in the rail industry and other industries impacted by
    freight and passenger rail service, to analyze the national and
    regional impacts of failing to address Chicago area rail congestion.
    Working with MSY Analytics, F&S analyzed economic data and reports, and
    interviewed numerous rail stakeholders. F&S's report (F&S Analysis) on
    national economic impacts of Chicago rail congestion, which includes a
    supplement on Chicago region economic impacts, accompanies this report.
    Findings from the F&S Analysis are summarized in the discussion below.
    A. Reliable and Expanded Passenger Rail Service in the Midwest Is Not
            Possible
            Unless Chicago Congestion Issues Are Addressed
        Rail gridlock within the Chicago region, and resulting congestion
    on the Amtrak routes leading to Chicago, has severely impacted on-time
    performance in the most important ``hub'' on Amtrak's national network.
    The ripple effects from these delays affect passengers throughout
    Amtrak's system, and impose significant costs on the company that
    increase its Federal and state funding requirements.
        A late arriving Amtrak train adversely impacts trains, passengers
    and Amtrak employees on the routes with which that train connects.
    Connecting trains must be held for passengers from the late train,
    causing delays along the connecting train's entire route. Or connecting
    trains can be dispatched on time before the late train arrives, which
    means that passengers connecting to other long distance routes must
    spend the night in Chicago and arrive at their destination a full day
    late. In addition, late train arrivals in Chicago often result in a
    late departure on the train's next outbound trip, since engineers and
    conductors must receive federally-mandated rest and equipment must be
    serviced and inspected.
        The graph below depicts the passengers traveling on Amtrak's
    Chicago-to-Washington Capitol Limited who connect to and/or from one of
    the 27 long distance, state-supported corridor, and Northeast Corridor
    routes with which that train connects in Chicago, Pittsburgh, and
    Washington. As the graph indicates, 41 percent of Capitol Limited
    passengers boarding or detraining in Chicago, 42 percent of passengers
    arriving or departing from Pittsburgh, and 36 percent of Capitol
    Limited passengers getting on or off in Washington, connect to another
    Amtrak route. Many passengers connect with another Amtrak route at both
    ends of their Capitol Limited trip.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Late trains and missed/broken connections adversely impact both
    Amtrak's revenues and costs. There is a high correlation between on-
    time performance and both ridership and customer satisfaction.
    Passengers who experience or anticipate delays are less likely to
    travel on Amtrak, impacting current and future revenues. In addition to
    paying hotel and meal expenses of passengers who miss Chicago
    connections, Amtrak incurs significant costs for employee overtime for
    both on-train and station personnel--not only on the late arriving
    train, but on other trains impacted by its late arrival and at stations
    along the routes those trains serve. Consistently late Capitol Limited
    arrivals have required Amtrak to break same-day connections between
    that route and some trains with which it formerly connected.
        Investments to address the Chicago area's rail congestion are also
    essential prerequisites to future expansion of passenger rail service
    in Chicago and throughout the Midwest. Additional capacity at Chicago
    Union Station, some of which CREATE Project P2 would provide, is
    required for future increases in Metra service at that station,
    implementation of planned increases in service on the Chicago-Detroit/
    Pontiac corridor and other state-funded Amtrak services in the Midwest,
    and to advance the multi-state MWRRI that would bring expanded, higher-
    speed rail service from Chicago to cities and communities throughout
    the Midwest.
    B. Chicago's Rail Gridlock Severely Impacts Freight Rail Service
            Nationwide
        Chicago area delays have a huge impact on transit times for freight
    rail shipments. CREATE has reduced the average time required for a
    freight train to cross Chicago. However, the average is still 30
    hours--about the same amount of time it takes the same train to travel
    from Chicago to the East Coast. If the remaining CREATE projects are
    not completed, existing delays are projected to more than triple.
        Because so much rail freight traffic moves through Chicago, even
    relatively small delays there can have a ripple effect throughout the
    U.S. rail network. As Scott Haas, Vice President for UPS, the largest
    rail intermodal shipper, explained:

            A lone train stopped in Chicago can force other trains to stop
            or slow as far away as Los Angeles or Baltimore. It's a ripple
            effect--everything in my system backs up.

        And when Chicago's rail network freezes up, manufacturers and
    retailers throughout the country--and the customers who can't wait for
    next week to buy their products--experience the consequences. As one
    retail industry official described:

            The Chicago congestion problem leads to pain for everyone,
            trickling down the supply chain . . . [D]uring one of the most
            recent delays, one retail company reported that almost half of
            its time sensitive Valentine's products did not make it to the
            shelf.
    C. The National Economy Depends Upon Chicago's Rail Network
        Chicago is the crossroads of the American freight rail network on
    which much of the U.S. economy depends. The F&S Analysis and other
    studies have quantified the large portion of the gross domestic product
    that is dependent upon Chicago area rail service; the impact when
    performance deteriorates; and the benefits that would result from
    improved service.

       A 2009 study by the University of Illinois Regional
            Economics Applications Lab study found that, in addition to
            private benefits, completion of all CREATE projects would
            produce $3.6 billion in public benefits, including 28,000 job
            years. Significantly, 75 percent of these benefits would be
            experienced outside of the Midwest Region, demonstrating the
            national importance of untangling Chicago's rail congestion.

       F&S calculated that $657 to $799 billion of the annual gross
            domestic product is dependent upon freight rail service through
            Chicago.

       A 2005 study by the American Association of State Highway
            and Transportation Officials (AASHTO) found that Illinois is--
            not surprisingly--the state with the highest economic
            dependence on Chicago's rail system. But the four other states
            with the greatest dependence on Chicago rail operations are
            spread from coast to coast, and from north to south:
            California, Texas, Ohio and New Jersey.

        As one rail shipper interviewed for the F&S Analysis explained:

            The people who suffer are not in Chicago. The people who are
            shipping are the ones who suffer. Such as in New York or
            Detroit, these are the people who suffer. This impacts the end
            user and the entire value chain.
    D. The Performance of Chicago's Rail Network Has a Major Impact on the
            City's and the Region's Economy
        Analyses by F&S and others have quantified the huge importance of
    the rail industry and rail service to Chicago and the surrounding
    region:

       A 2003 study found that rerouting a significant volume of
            rail freight traffic away from the Chicago area would reduce
            gross regional product (GRP) by $1 billion to $3 billion
            annually, and eliminate 5,000 to 15,000 jobs.

       The Amtrak Chicago-based corridor trains funded by Illinois,
            Wisconsin, Indiana and Michigan play a vital role in the
            viability of colleges and universities in those states. In many
            Amtrak-served university communities, annual Amtrak ridership
            significantly exceeds local populations. In the words of the
            mayor of Macomb, Illinois, home of Western Illinois University:

            So many students from the metropolitan area of Chicago rely,
            absolutely rely on Amtrak to get to and from Western Illinois
            University . . . In many cases, it's their only reliable form
            of transportation to get to and from home. Not having Amtrak
            service could make Western Illinois less appealing when it
            comes to recruiting students.

        The expansion of the Panama Canal, scheduled for completion later
    this year, creates a new competitive threat for the Chicago region. The
    expanded canal will allow much larger ships carrying goods imported
    from Asia to travel directly from Asia to East Court ports. This will
    create a new and less costly routing option for shipments presently
    unloaded from ships at West Coast ports and moved by rail to the
    Northeast via Chicago. Rail's one advantage--a more direct route to the
    East Coast that is somewhat faster than an all-water route--will be
    eroded if Chicago-area congestion persists or worsens.
    E. Chicago Rail Gridlock Harms the Environment
        Failure to address Chicago's rail congestion problem negatively
    impacts the environment locally, regionally and nationally. Stopped and
    slow moving freight trains produce additional emissions that increase
    air pollution in neighborhoods traversed by Chicago's rail lines. Air
    quality in other regions is adversely impacted by increased emissions
    from freight trains that are rerouted over longer, more circuitous
    routes to avoid Chicago.
        Less obvious but even more significant are the adverse
    environmental impacts from freight and passengers that utilize other
    modes because of Chicago area delays, and the inability of its rail
    network to accommodate increased demand. Because passenger and freight
    rail service are more energy efficient than other modes, energy
    consumption and environmental impacts both increase when people or
    goods travel by automobiles, planes or trucks instead of rail.
                          Recommendations of the Panel
    I. Real Time Operational Coordination Among Chicago's Railroads,
            Including Coordinated Dispatching, Is Needed
        Over the past 15 years, Chicago's 10 passenger and freight
    railroads have taken some steps to enhance operational coordination.
    But more needs to be done to eliminate physical and cultural barriers
    that impede improved, real time coordination of Chicago rail operations
    among railroads.
        Other than shifting trains and traffic away from Chicago, enhanced
    operational coordination provides the best near-term opportunity to
    significantly alleviate Chicago rail network congestion. Improvements
    in operations and coordination are much less costly, and can be
    implemented relatively quickly, compared to major infrastructure
    projects on heavily utilized rail lines. Without such operational
    improvements, congestion will continue to grow.
        The Panel believes that coordination of train dispatching offers an
    important opportunity to improve rail operations in Chicago. Joint
    dispatching centers, in which dispatchers from multiple railroads
    operating in complex terminal areas work together at single location,
    have been very successful in alleviating congestion and reducing delays
    in a variety of operational environments.
        Joint dispatching centers can take different forms. Some are
    limited to co-location: each railroad has its own dispatchers who
    dispatch its lines, but all dispatchers work in the same room to
    facilitate coordination, typically under a jointly-appointed supervisor
    or a supervisor position that rotates among the participating
    railroads. Joint dispatching can also entail having a consolidated
    dispatching force in which dispatchers, although employed by an
    individual railroad, are assigned territories without regard to which
    railroad owns them.
        Two examples:

       For over 20 years, Amtrak and the Long Island Rail Road
            (LIRR) have been jointly dispatching what may be the only
            portion of the U.S. rail network more challenging than Chicago:
            New York's Penn Station, and the adjacent rail tunnels that
            connect it to Queens and New Jersey. Amtrak and the LIRR
            alternate managerial control of the joint dispatching center,
            which handles over 1,000 daily Amtrak, LIRR and New Jersey
            Transit trains. Dispatchers are assigned without regard to
            which railroad is the predominant user of particular tracks and
            tunnels.

       In 1998, UP and BNSF established a joint dispatching center
            in Spring, Texas as an emergency measure to address rail
            network gridlock in the Houston area. Dispatchers for both
            railroads were co-located at the center, and a joint director
            was appointed to manage it. With the exception of a jointly
            operated line, dispatchers from each railroad continued to
            dispatch their own rail lines, but worked together to
            coordinate operations. UP and BNSF also agreed to a ``clear
            path'' protocol under which trains were routed through the
            Houston area on the least congested route, regardless of track
            ownership. The success of the Spring Dispatching Center led the
            two railroads to bring additional rail lines under its control,
            and to establish similar joint dispatching centers in San
            Bernardino, California and Kansas City, Kansas.

        The Panel believes co-locating dispatching of Chicago area rail
    lines in a single location is an essential first step in enhancing
    operational coordination in Chicago. While each railroad could continue
    to dispatch its own rail lines with its own dispatchers, Chicago area
    dispatching would no longer be spread among ten different locations.
        Coordination between different railroads' dispatchers on
    ``handoffs'' of trains traveling over multiple railroads, and in
    responding to service problems and emergencies, would be enhanced by
    having all dispatchers in the same physical location, where in-person
    communications would replace phone calls. Co-location would also
    facilitate further actions to coordinate dispatching, such as joint
    dispatching of shared use lines or of connecting line segments owned by
    different railroads.
        The Panel recommends that CTCO and Chicago area freight and
    passenger railroads pursue implementation of co-located dispatching as
    soon as possible. Amtrak has expressed a willingness to consider
    hosting a co-located dispatching center in Chicago Union Station, which
    would provide a neutral location for Chicago area freight railroads.
    However, the Panel is not recommending any particular location for the
    center.
    II. Railroads, Including Amtrak, Should Continue Efforts to Improve
            Operating Performance within the Chicago Terminal
        The 2014 Chicago rail service crisis has led all of Chicago's
    passenger and freight railroads to refocus attention on near term
    actions they could take, individually and collectively, that would
    reduce network congestion. Many of the rail stakeholders with whom the
    Panel spoke noted that cooperation and communication among railroads
    have significantly improved since that time. Actions taken collectively
    through the CTCO and Chicago Planning Group, and by individual
    railroads, that have helped minimize reoccurrences of gridlock. The
    Panel urges that these efforts continue, and that they receive the
    necessary senior management attention and support.
        With regard to Amtrak, the Panel recommends that it continue its
    efforts to improve those aspect of Chicago area rail operations over
    which it has the most control. Of particular importance is getting
    trains out of Chicago Union Station on time even when turnaround times
    are shortened due to late arrivals of incoming trains.
        On-time departures facilitate smoother terminal operations, since
    late departing trains often delay other trains. They also ensure that
    Amtrak trains will be on-time when they enter the territories of
    Amtrak's host railroads. On-time performance is very important to
    Amtrak's passengers and state partners, who recognize the challenges
    that Amtrak faces operating trains over a rail network it does not own
    or dispatch but expect Amtrak to deliver high levels of performance in
    those areas where it has greater control.
        The Panel also encourages Amtrak and Metra to pursue opportunities
    for enhanced coordination at Union Station, and its associated tracks
    and facilities, that could improve terminal on-time performance of both
    railroads.
    III. Adequate, Sustained Public Funding Must Be Provided for Vital
            Projects that Will Produce Significant Passenger Rail and Other
            Public Benefits
        The need for significant additional investments in Chicago's rail
    infrastructure is indisputable. But without adequate, sustained public
    funding for investments in transportation projects of national
    significance, and for intercity and commuter passenger rail, those
    investments are unlikely to occur.
        The three projects the Panel has identified as immediate
    priorities--the CREATE 75th Street and Grand Crossing Projects, and
    additional investments in the Indiana Gateway--could be accomplished
    for less than $1.5 billion. Private funding can cover some of the costs
    for projects that produce both private and public benefits. However,
    without a public funding match, private money will likely be invested
    on other projects that generate higher financial returns.
        Additional investments must begin now. Major rail projects on
    heavily utilized rail lines take many years because of the very long
    lead times for grant applications, planning, design, environmental
    review and construction. Environmental reviews are valid for a limited
    period before they must be updated or redone, and construction of major
    projects on heavily utilized rail lines that cannot be shut down takes
    considerable time. The EIS process for the 75th Street Project took
    almost four-and-a-half years, and construction is expected to take five
    years once funding becomes available.
        Funding must be found for shovel-ready projects for which
    environmental reviews have been completed. Otherwise, there will be no
    quick fixes when the next big crisis occurs, and key portions of the
    Chicago rail network become gridlocked.
        The Panel urges Federal and state elected officials and
    policymakers to provide adequate, sustained funding for rail
    investments of national importance. This could be accomplished by
    reauthorizing and appropriating funds for existing unfunded or
    underfunded programs, such as the intercity passenger rail capital
    matching grant programs established by the Passenger Rail Investment
    and Improvement Act of 2008, or by enacting and funding new capital
    grant programs.
    IV. The CREATE 75th Street Corridor and Grand Crossing Projects Should
            Be Prioritized
        The Panel supports the vision embodied in the CREATE program. That
    initiative is necessary both to alleviate today's congestion and as a
    first step in positioning Chicago's rail network to accommodate
    projected future growth of both freight and passenger services. The
    Panel also believes that planning for additional Chicago-area
    investments beyond CREATE needs to move forward now to prepare for
    future growth.
        As discussed above, the two unfunded CREATE projects that would
    provide the greatest benefit to Amtrak, and to future expansion of
    passenger rail service, are the 75th Street Corridor and Grand Crossing
    Projects. The 75th Street Project addresses the most significant rail
    network chokepoint in Chicago, and permits some expansion of passenger
    rail service at Chicago Union Station. Grand Crossing eliminates a
    time-consuming backup move for Amtrak's Chicago-Carbondale-New Orleans
    trains, and adds new rail line capacity and connections that facilitate
    separation of passenger and freight operations on a heavily utilized
    shared corridor. Environmental reviews for both projects are complete
    or nearly so--but no funding has been identified for their
    construction. Ways to advance these two projects must be found.

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        Abandoned railroad bridge that will carry the new Grand Crossing
    Connection over CN tracks to join NS's Chicago Line.

        For the 75th Street Project, if a portion of the required funding
    becomes available before the full amount needed is in hand, the panel
    recommends prioritization of the P2 project that would construct a new
    flyover connection to the Rock Island Line for Metra's SouthWest
    Service. By relocating Metra trains to the south side of the east-west
    75th Street Corridor, P2 would eliminate the Metra cross-over moves at
    75th Street that virtually shut down that vital freight corridor for
    six hours of every weekday. In addition, by shifting SouthWest Service
    trains to LaSalle Street Station, P2 would eliminate conflicts between
    Metra trains and NS/Amtrak trains north of 75th Street. It would also
    alleviate overcrowding and platform capacity constraints at Chicago
    Union Station, permitting some expansion of services at that facility.
    V. Additional Investments Should Be Made on the Porter, Indiana to
            Chicago Corridor
        The Panel believes that additional investments on the crucial
    Porter-Chicago Corridor, beyond the current Indiana Gateway Project,
    are essential. These investments are needed to alleviate the ``Last
    Mile'' bottleneck on the 110 mph Detroit-to-Chicago High Speed Corridor
    and improve the performance of the more than 100 passenger and freight
    trains that operate over the Porter-Chicago Corridor. They would also
    enable Michigan to implement plans to increase service frequency on the
    Detroit-Chicago route from three to ten round trips per day by 2030,
    and provide capacity for new corridor routes to Indiana and Ohio that
    are included in the plans of the Midwest Regional Rail Initiative.
        The Panel supports construction of the proposed South of the Lake
    Line. It which would provide dedicated higher speed passenger tracks
    between Porter and Chicago that would reduce trip times and enhance
    reliability for all passenger and freight trains on the Porter-Chicago
    Corridor.
        The development of a separate passenger rail corridor from Chicago
    Union Station to Porter is a goal that can be achieved in phases. The
    three CREATE projects along the NS Chicago Line--the completed
    Englewood Flyover, and the planned 75th Street and Grand Crossing
    Projects--coupled with the Development Rights Agreement discussed above
    that allows Amtrak to utilize surplus NS right-of-way between 21st
    Street in Chicago and Grand Crossing for additional passenger tracks,
    set the stage for development of a passenger rail corridor from Chicago
    Union Station to Porter, which could be constructed eastward in phases
    until there are separate tracks on this entire route segment.
        The Panel recommends construction of new passenger tracks on former
    and surplus railroad right-of-way adjacent to NS's Chicago Line between
    Chicago and Buffington Harbor, Indiana, and from Buffington Harbor to
    Porter via Tolleston, Indiana along existing freight railroad rights-
    of-way. Selection of this alignment, depicted in the map on page 20 and
    identified as Alternative 5 among the routing options evaluated in the
    draft EIS developed by Michigan DOT and FRA, would facilitate
    incremental construction of segments of passenger-only tracks between
    Chicago and Buffington Harbor as funding becomes available. This would
    produce benefits for passenger and freight service many years sooner
    than construction in new or predominantly new alignments. East of
    Buffington Harbor, this alternative would avoid environmentally
    sensitive National Park Service property (the Indiana Dunes National
    Lakeshore that borders the NS Chicago Line right-of-way), minimizing
    environmental impacts associated with constructing additional tracks
    and the costs and delays associated with remediating them.
        In the period before construction of dedicated passenger tracks is
    completed, the Panel recommends additional investments on the NS
    Chicago Line between Porter and Chicago currently used by Amtrak that
    would benefit passenger and freight operations. Such investments would
    also provide capacity for projected increases in freight operations
    after passenger trains shift to dedicated tracks.
    VI. Innovative Financing Approaches Should Be Encouraged by RRIF Loan
            Program Reforms
        Many transportation projects that generate or have access to
    revenue streams that can be used to pay off debt have utilized
    innovative financing approaches that reduce upfront funding costs. For
    example, 16 percent of the cost of constructing the Alameda Corridor, a
    20-mile, grade separated freight line that links the ports of Los
    Angeles and Long Beach to UP's and BNSF's rail networks, was funded
    with a low-interest Federal loan secured by the ports. The loan is
    being repaid with a portion of the revenues from a per car/unit charge
    for each railcar or container that operates over the line.
        The Federal Railroad Rehabilitation and Improvement Fund (RRIF)
    loan program could play a significant role in providing financing for
    projects to increase rail network capacity. RRIF is a revolving loan
    and loan guarantee program administered by the Federal Railroad
    Administration that is authorized to make up to $35 billion in loans to
    railroads and governmental entities for freight and passenger rail
    investments. RRIF loans carry low interest rates based upon Federal
    borrowing costs. They also allow for a five-year grace period before
    repayment begins, and a payback term of up to 35 years. These
    provisions are important for long-lived rail infrastructure investments
    that do not begin producing benefits until completion of construction
    that takes years.
        However, the RRIF loan program has been underutilized. Over 90
    percent of the authorized funding remains unused 17 years after the
    program came into existence, and no Class I railroad has ever taken out
    a RRIF loan. Railroads have cited creditworthiness requirements that
    they view as overly stringent (and are applicable despite the fact that
    no RRIF loan has ever gone into default), and a costly and time
    consuming application process that can take years before a decision is
    made, as among the reasons for not pursuing RRIF loans.
        Legislation that addresses these issues has been introduced in the
    current Congress. The Panel recommends that Congress enact appropriate
    changes in the statutory provisions governing RRIF that will remove
    unnecessary impediments to realizing the full potential of the RRIF
    program.
    VII. Environmental review requirements that apply to rail projects
            should be consistent among transportation modes, coordinated
            among
            agencies, and prioritized for projects of national importance
        Freight and passenger rail are more energy efficient than other
    transportation modes. Unlike highways and airports, rail line capacity
    can be added in most cases with little or no increase in rail's land
    footprint. As a result, investments to increase rail network capacity
    and efficiency that allow trains to carry more passengers and goods
    produce significant environmental benefits.
        Realization of these benefits requires timely and efficient
    completion of environmental and other Federal reviews required for rail
    projects. The Panel believes that Federal regulations and processes for
    such reviews should be consistent among modes; that interagency
    coordination should be enhanced, particularly at the front end of
    reviews; and that reviews of projects of national importance should be
    prioritized.
                                   Conclusion
        Solving Chicago's rail problems is a huge challenge. It will
    require money, leadership, a willingness to pursue new approaches, and
    setting aside corporate and political boundaries--to say nothing of
    railway operating and engineering expertise. If aggressive action is
    not taken now to address what may well be our country's most
    significant transportation bottleneck, the adverse national, regional
    and local impacts on passenger and freight rail transportation, and on
    the economy, will be enormous.
        However, Chicago's challenged rail operations also present a huge
    opportunity. It is no exaggeration to say that realizing the full
    potential of passenger and freight rail service in the Chicago area,
    the Midwest, and throughout North America, and the contribution rail
    service can make to local, regional and national economies, all depend
    on seizing that opportunity. If the necessary steps are taken to
    address the problems identified in this report, and to improve and
    expand rail service in Chicago, the future competitiveness of our
    Nation will be assured.

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        Senator Duckworth. Thank you.
        Mr. Dearborn, do you agree with the Blue Ribbon Panel's
    recommendation that joint dispatching could improve rail
    congestion in Chicago? And if you are confirmed, is this an
    issue you would be willing to discuss with Amtrak's freight
    partners?
        Mr. Dearborn. Senator, if confirmed, I would definitely
    want to look into the issue further. I was actually very
    surprised to find out how many different dispatches--
    dispatchers were in Chicago. I tried to familiarize myself with
    the CREATE program, all the good work that you've done there,
    but it is a complex issue. It does take, I believe, exactly as
    you said, enhanced coordination. And I would be committed to
    look at it further. I know how important that is to the country
    and to you.
        Senator Duckworth. Thank you. So often Amtrak's rail
    service is sitting on a side rail while freight trains go
    through.
        Mr. Dearborn. Right.
        Senator Duckworth. And especially at Chicago, too, the
    Saluki Express downstate.
        Mr. Oberman, in your view, what role can STB play in
    facilitating this concept of joint dispatching in the
    Chicagoland area?
        Mr. Oberman. Well, I'm not sure the STB has a formal role.
    The system is so complex, as you described and as we've talked
    about a little earlier, those--all these railroads do interact
    on a daily basis. The report's suggestion that they all get in
    a same room together to facilitate that communication and make
    it even more--operate more smoothly, it seems to me to be an
    idea well worth pursuing.
        So on a personal basis, I thought the suggestion had merit.
    I'm not sure the STB itself has a formal role there unless
    there were some service issue in which the STB was asked to
    facilitate a resolution of it. It's really sort of beyond STB's
    role to sort of jump in and start initiating changes on how the
    system operates, but--unless a service problem is brought to
    the Board's attention. But the concept I think has a great deal
    of merit and ought to be seriously considered. We've got to get
    all the partners at the table to voluntarily cooperate.
        Senator Duckworth. But I think an indication of STB that
    this was a good idea would certainly be helpful.
        Mr. Oberman. Well, if confirmed, it is something that I
    could certainly bring up with my newfound friends at the Board,
    several of whom are in the room today and I'm sure are
    listening intently to what you're saying.
        Senator Duckworth. Great. Thank you.
        I thank you both for being here. We have to somehow solve
    this problem, when we have two trains coming from opposite
    directions that are on schedules that are met that will get
    them so that they all meet in the middle at the same time, and
    sometimes it's three or four trains. I don't know how often,
    Marty, you've ridden that rail service, the Saluki, but I've
    sat as long as 3 hours on an Amtrak train waiting for all of
    the freight to be deconflicted.
        But thank you both. Thanks to you both for being here, and
    thank you for meeting with me.
        Mr. Dearborn. Thank you.
        Mr. Oberman. Thank you, Senator.
        Senator Duckworth. I'm out of time.
        Senator Wicker. Senator Duckworth, I'm guessing this is not
    the last time you're going to raise this issue----
        [Laughter.]
        Senator Wicker.--so I think it's worthwhile to look into.
        Senator Udall, you are recognized.

                     STATEMENT OF HON. TOM UDALL,
                      U.S. SENATOR FROM NEW MEXICO

        Senator Udall. Thank you, Mr. Chairman. And thank you for
    that recognition very much.
        Mr. Dearborn, Amtrak recently presented a proposal to
    replace long distance train service along the Southwest Chief.
    The Southwest Chief, I believe, runs from Los Angeles to
    Chicago, up in Tammy's country, and they wanted to replace the
    route with bus service in certain rural communities. Every--as
    you probably know well, every time you have a cross-platform
    transfer, you lose 50 percent of your ridership. That is an
    enormous decrease long term.
        This proposal would result in discontinuation of service
    altogether on the Southwest Chief. Stopping service would
    damage communities, including my home state of New Mexico. And
    I know you've heard many of the concerns about this plan. Do
    you share these concerns expressed by myself and my colleagues?
        Mr. Dearborn. Senator, I'm familiar with the concerns. I
    have heard something about this option being discussed. I think
    long distance service is an important part of the national
    passenger railway system. I'd like to learn more about it. And
    if confirmed, you have my commitment to work with you and your
    staff to make sure that we continue to try to focus on the
    Southwest Chief being a vibrant route.
        Senator Udall. Good. Thank you. And I hope you will come to
    New Mexico and ride the Southwest Chief and meet my
    constituents that love it.
        Mr. Dearborn. I'd love to do it with you.
        Senator Udall. OK.
        Mr. Dearborn. That'd be great.
        Senator Udall. You bet.
        Mr. Dearborn. Thank you.
        Senator Udall. And one of the----
        Senator Wicker. Can I come?
        Senator Udall. Yes, Roger, you're invited. You're invited,
    Mr. Chairman, absolutely.
        And one of the interesting things, in northern New Mexico,
    the Boy Scouts sometimes ride the train in to get to Philmont
    Scout Ranch, which is one of the premier places for Boy Scouts
    to go.
        Roger, we could go there, too.
        Mr. Dearborn. That'd be great.
        Senator Udall. I'm concerned about the safety of putting
    train passengers on buses, and let me elaborate just a little
    bit. If the train terminates at La Junta, Colorado, buses would
    have to travel on a narrow two-lane road through a remote
    countryside frequently closed due to severe winter storms and a
    section of State road that is not plowed during the night when
    you have those winter storms. Terminating the train at Dodge
    City, Kansas, would add 200 more miles through equally remote
    territory affected by winter weather. And buses traveling on
    Interstate 25 would have to climb two mountain passes in this
    area, Raton Pass at 7,800 feet elevation and Glorieta Pass, at
    7,500. And that frequently--those two passes frequently
    experience treacherous winter driving conditions.
        Has Amtrak taken into consideration the safety issues
    related to this proposed bus service option? All of these
    examples illustrate that passengers and crew are safer on train
    throughout this territory than a bus.
        Mr. Dearborn. Senator, I'm not familiar with whether or not
    Amtrak has looked at that specifically, those particular
    mountain routes, but you hit on something that's very important
    to me, and should be to all of us, and that is safety.
        Senator Udall. Yes.
        Mr. Dearborn. And I think that would be a focus of mine if
    confirmed on the Board to talk to them about that.
        Senator Udall. Good. Good. And I really think if you focus
    on the safety issues, there's no doubt that you come out on the
    side of keeping people on rail and keep the rail going all the
    way through the Southwest Chief route rather than trying to put
    people on buses in winter conditions and everything I
    described.
        You've indicated that you understand the importance of
    national network trains that cover long distances, such as the
    Southwest Chief. And I think you've committed to come and ride
    it with me. And we've got the Chairman there, too.
        Let me just ask you a final question. You were the Director
    of the Congressional Communications for Heritage Foundation.
    And Heritage has on many occasions called on Congress to
    eliminate all Amtrak funding. Do you believe that Amtrak
    funding should be eliminated?
        Mr. Dearborn. I don't. And I think everybody is entitled to
    their opinion.
        Senator Udall. OK, good. And let me see, I have a couple
    more minutes here.
        What are the ways to sustainably improve Amtrak's recovery
    should the rail system expand or should routes be changed?
        Mr. Dearborn. I think expansion. I think it would be
    fantastic to focus on maintaining the routes that we have and
    then look at increased ridership. Again, that's been kind of a
    priority of mine as I've looked into it further. You know, we
    have a large number of major cities that are dealing with
    highway congestion. If we can provide an alternative and
    increase ridership, increase revenue, we can not only maintain
    our long distance routes, but provide new opportunities and new
    options for travelers in these larger cities.
        Senator Udall. Thank you.
        Thank you very much, Mr. Chairman.
        Senator Wicker. Thank you very much, Senator Udall.
        Senator Markey.

                   STATEMENT OF HON. EDWARD MARKEY,
                    U.S. SENATOR FROM MASSACHUSETTS

        Senator Markey. Thank you, Mr. Chairman, very much.
        For long-haul Amtrak trips where passengers could travel
    for several hours, adequate meals become an essential part of
    the trip, just like seat cushions and air conditioning, but
    earlier this summer, Amtrak discontinued dining car services
    for sleeping car passengers on a number of lines, including the
    South Shore Limited, which services Boston. Rather than
    providing hot meals from dining cars, Amtrak has replaced this
    service with cold, pre-made food more closely resembling
    airline food.
        Mr. Dearborn, Amtrak passengers consistently rate the hot
    meals provided by dining cars as one of the most popular
    aspects of rail travel. Do you support the recent cuts to
    dining car services?
        Mr. Dearborn. Senator, I think the way to increase
    ridership is to focus on those things that appeal to the
    customer and to the passenger. As I understand it, there
    actually is a hot meal option. There was controversy around
    that. I need to learn more about it. If confirmed to the Board,
    I'd like to focus more on that. But I do believe that those are
    ways that Amtrak can be competitive with plane flight. So I
    think the ability to focus on the amenities that make it more
    attractive to increase ridership is important.
        Senator Markey. Right. But being competitive with airlines
    is like saying we're going to provide you with more than a bag
    of pretzels, right? If that's the competitiveness then--the hot
    meal is what the differentiation is in terms of saying I'm
    getting on the train, I enjoy that more, right?
        Mr. Dearborn. Yes, sir.
        Senator Markey. So would you commit here to reevaluating
    these cuts and consider reinstating dining services?
        Mr. Dearborn. I'd be happy to look into that if confirmed;
    yes, sir.
        Senator Markey. OK. Regrettably, 37 percent of rail-related
    fatalities occur at grade crossings, where a railway line
    intersects with a road or a path. In March, a public works
    official was killed when his snowplow was struck by an Amtrak
    train at a rail crossing in Longmeadow, Massachusetts. This
    tragic event marks the fifth death and seventh collision at the
    location since 1975, making this crossing the deadliest in
    Massachusetts.
        Mr. Dearborn, if confirmed, how will you ensure that Amtrak
    improves safety at these type of grade crossings?
        Mr. Dearborn. I believe the focus has to be safety. I think
    positive train control will be a part of that. Again, I was
    encouraged--I mentioned earlier that bringing on Ken Hylander
    as the new Executive Vice President to focus on the development
    and implementation of a safety management system, to look to
    predict risk, to anticipate it, to focus on how best to
    mitigate these risks, whether it's at grade crossings or in
    yards with heavy traffic. I think at the end of the day, the
    whole goal is to be accident-free and make sure all of our
    passengers are safe.
        Senator Markey. Great. Well, for the Longmeadow Crossing,
    the state and local governments are seeking to implement safety
    improvements, adding warning lights and gates at the crossing,
    and have already secured over $700,000 in Federal assistance,
    but to implement these safety features, Amtrak, the owner of
    the rail line, must first confirm that the crossing is public,
    approve a design and construction plan, and may need to
    contribute a portion of the cost.
        Last year I sent a letter with Senator Warren and
    Congressman Neal calling on Amtrak to help address this matter,
    and I'm pleased Amtrak has been constructively working with the
    State and local governments on improving the crossing. So I
    hope that that would continue.
        And finally what I'd like to say is I'd like to briefly
    voice my support for the comments made by Senator Nelson. The
    settlement that the Trump Administration entered into last
    month to allow for the online distribution of downloadable guns
    should be deeply disturbing to us all. Anyone, including
    criminals and terrorists, will now have access to blueprints
    for making deadly weapons, including semi-automatic firearms,
    like the AR-15, used in the Parkland, Florida, shooting.
        So you have to let that sink in a little bit. Anyone with
    Internet access will be able to simply print a semi-automatic
    weapon with a 3D-dimensional printer. As Senator Nelson noted,
    these firearms are not only untraceable, but they can also be
    undetectable. The Commerce Committee has jurisdiction over the
    Transportation Security Administration, an agency that will be
    able to speak to the risk of 3D-printed plastic guns. And I
    believe that's an issue which our Committee should review in
    the very near future.
        It's not only in the Gaza that Hamas will be able to
    download these guns, creating a national security set of
    issues, but it's also domestically here where terrorists and
    others will be able to download these guns, these plastic guns.
    We just can't have people going to Instagram to download an
    ``instagun'' and have it be undetectable. I just think it's
    going to create a whole new era in our society, and I hope that
    we have the hearings that reflect the danger that imposes.
        Thank you, Mr. Chairman.

                     STATEMENT OF HON. JOHN THUNE,
                     U.S. SENATOR FROM SOUTH DAKOTA

        The Chairman [presiding]. Thank you, Senator Markey.
        I get that you guys are down to the last evidently here, so
    hopefully we'll get you--get things wrapped up here, but I do
    appreciate both you, Mr. Dearborn, and you, Mr. Oberman, for
    your service and willingness to serve, and for Senator Wicker
    for serving this morning as Chairman.
        As my colleagues have already noted, we have two very
    distinguished and well-qualified nominees before our Committee
    today, and, if confirmed, you're going to serve in some
    critical positions in the administration for our Nation's
    transportation network.
        So I have a few questions I'd like to ask regarding some of
    the issues that I have prioritized as Chairman, and I'm sure
    you've probably heard other Members in some form ask some of
    these questions, but we'll get some of them on for the record.
        Mr. Dearborn, Amtrak's CEO, Richard Anderson, previously
    testified before this Committee on positive train control
    implementation, and he specifically indicated that Amtrak's
    position is that it cannot permit noncompliant equipment to be
    used on its tracks after the end of the year. If confirmed, you
    and the rest of the Amtrak Board will be charged with
    determining the strategic direction of Amtrak. So maybe you can
    tell us what your views are on how Amtrak should handle these
    noncompliant railroads' operations over Amtrak-owned track?
        Mr. Dearborn. Mr. Chairman, thanks for the question. We
    have talked a lot today about safety and PTC. I am familiar
    with it. My view is that the PTC system should be up and
    running by the deadline, and that I know currently Amtrak is
    working on a daily basis with its--with the other stakeholders,
    commuter rail, and others, states, et cetera, to try to address
    and mitigate any of the risks on any section of the track that
    is not up to full accreditation of PTC, but that they can--they
    can address those risks so that those portions of the track can
    be operational and ultimately compliant under PTC.
        The Chairman. Well, it's going to be, as we get closer to
    that deadline, I think, as we all know, there are certain
    railroads, particularly passenger railroads in the Northeast
    Corridor, that are having a hard time getting--meeting the
    deadlines, but we, frankly, just flat have to get there. We've
    already had a number of extensions to that deadline. People
    know that it's out there, and we've told them with lots of
    advanced notice, and also provided a significant amount of
    resources to help them achieve the goal. So we hope that in
    your new role that you will work with the Amtrak Board and with
    other carriers as well, over which whose track you operate to
    make sure that everybody is compliant.
        Mr. Oberman, what do you see is the Board's role in
    responding to rail service issues? And, if confirmed, what
    long-term actions do you believe STB should take to prevent or
    mitigate future service delays?
        Mr. Oberman. Thank you, Senator. First, of course, your
    instance with the reauthorization bill that you empowered the
    Board with new authority to initiate investigations concerning
    violations, which mostly are going to focus on service. And I
    indicated in my opening statement that it's important to--for
    the Board to proceed under that authority very carefully and
    judiciously. There were a number of thresholds that were
    written into the bill, and the Board staff, actually one of
    whom is sitting behind you, have ably worked on regulations to
    implement that new authority, and the Board has not yet
    utilized it.
        So one of the things, if confirmed, that I would be
    committed to is as service issues arise, to carefully examine
    whether those issues are of regional and national importance
    and rise to a level where the Board ought to begin to take
    action.
        Of course, the Board, on a regular basis, has staff that
    handles informal--informally handles concerns about service
    that are brought to the Board's attention, and from what I have
    learned, does a fairly able job at keeping the system running.
    You could not litigate every service issue if you want to keep
    a healthy system. You have to be there on a daily basis to make
    sure these problems are ironed out. And I would be committed,
    if confirmed, to make sure that the Board has a vigorous effort
    in continuing to do the fine work it's done there and to expand
    it as needed.
        The Chairman. As you're probably well aware, one of the
    important responsibilities of STB is deciding rate cases that
    come before it. Unfortunately--excuse me--the Board's rate
    review process can be quite costly and time-consuming. And the
    STB Reauthorization Act of 2015, as you mentioned, sought to,
    among other things, improve the way that rate cases are
    handled.
        Additionally, this spring, Chairman Begeman established an
    Internal Rate Reform Task Force, which is looking at and
    discussing with stakeholders ways to reform STB's rate review
    process for large cases and determine how to best provide a
    rate review process for smaller cases.
        If confirmed, are you committed to finding a workable
    solution to the rate case process for smaller shippers?
        Mr. Oberman. I am, Senator. One of the things that I'm very
    sensitive about, having spent much of my career as a trial
    lawyer, particularly on the plaintiff's side, is that it's
    useless to have a forum that doesn't provide a practical
    avenue. And if you have a theoretical solution through
    litigation, but one that's impractical for anybody to use, you
    might as well not have a forum at all.
        So I think what the Board will be doing, and it's something
    that I would be committed to if confirmed, is coming up with a
    system, if needed, to make sure that there is a practical way
    to get rates set in a fair manner that certainly protects the
    interests of the railroads, but makes sure that shippers have a
    practical forum to get resolution. It is a very, as I am
    learning, rapidly a very subtle complex economic issue to come
    up with the right formula that's--it can't be too simple----
        The Chairman. Right.
        Mr. Oberman.--because the economics, as you well know, are
    quite complex, but it can't be so complex as to not be useful,
    and that's the balance that has to be struck.
        The Chairman. And do you have any thoughts about what those
    next steps for establishing such a rate review process might
    be?
        Mr. Oberman. Well, it just seems to me the first step is
    for all of us who are--if I am confirmed, and the others who
    are new, to grapple with this issue and to really focus on
    getting up to speed on the work that's been done and meeting
    with the various constituent groups to make sure we understand
    their concerns, and then, in short order, grapple with whether
    we're going to enact a different procedure, keep the same one,
    but tinker with it. But it just should be high on the--it's
    certainly high on my priority, to begin to grapple with that
    issue and come to resolution. I know a lot of people have been
    waiting for the Board to do it.
        The Chairman. Right. As evidenced by some of my other
    questions, the STB has a number of pending matters that it is
    considering and which could have a significant impact on
    smaller shippers, including farmers and other rural shippers.
    If confirmed, which proceedings would be a top priority for
    you, acknowledging that decisions to proceed on rulemaking,
    it's another Board decision, so it would be subject to a vote
    of the other Board members? I'm not--you can't bind the Board
    obviously, and I understand that, but could you give us a
    little insight perhaps into how you would view the priorities
    that might be placed on some of these cases and proceedings
    that you would have to--that you would be considering as a
    member of the Board?
        Mr. Oberman. Well, certainly, the ones that are at the top
    of the list are dealing with the rate regulation system, the
    standalone cost system, reexamining that. There are pending
    rules dealing with exemptions, and pending rules and
    considerations dealing with competitive switching. It seems to
    me those three are certainly among the top priorities. I
    haven't ranked them one, two, and three, but they're all right
    up there and I think will command the attention of all of the
    board members.
        The Chairman. OK.
        Mr. Oberman. I may have left one out, but those are the
    three----
        The Chairman. Yes, no, those--and those are--yes, those are
    very--very relevant to all the issues that I think we deal with
    in terms of the cases.
        During the nominations process, I imagine that you have
    given some thought to how you might handle cases that come
    before the Board or that are already before the Board involving
    or relating to Metra, given your previous experience as
    Chairman there. If confirmed as an STB Board member, do you
    plan to recuse yourself from cases involving Metra?
        Mr. Oberman. To my knowledge, Senator, there is only one
    pending case involving Metra now. It was recently filed. And
    I--it's a--that's an issue that I have to examine very
    carefully. I left Metra a little over a year ago. The case was
    not filed at that time. I'm aware that the case exists, and as
    I understand it, it involves action taken by Amtrak long after
    I left the Board.
        So I think recusal is a very fact-specific matter which I
    intend to look at very closely, and if--and consult with the
    Ethics Counsel and General Counsel thus to be, and if the facts
    warrant it, based on what I did at Metra, then I would recuse
    myself. I don't know yet because I haven't read the case. But I
    don't see any reason for a blanket----
        The Chairman. Right.
        Mr. Oberman.--recusal because I don't--cases could come up
    in the future which I have nothing to do with.
        The Chairman. Right. OK.
        This will be back for Mr. Dearborn. At the beginning of the
    year, Amtrak announced that it will implement a safety
    management system, a proactive risk management system, which
    builds on predictive safety management methods which have been
    used to improve safety in other industries, including the
    aviation industry. If confirmed, how would you continue to
    support Amtrak's efforts to improve safety using this approach?
        Mr. Dearborn. Well, I'm encouraged by it. I think one of
    the best developments was bringing on board new Executive Vice
    President Ken Hylander. He's in charge of the safety management
    system. He's had experience with it in the airline industry. I
    think any system that can help us predict, mitigate, and manage
    the risks so that we can focus on safety and increase our
    safety record is going to be important. And I look forward to
    working with the management team and the rest of the Board to
    implement the system fully.
        The Chairman. And understanding the importance of that
    safety management system, but realizing it is one piece of an
    overall approach to focusing on safety, what do you see as the
    importance of promoting a safety culture? And how would you
    work to support that culture if confirmed?
        Mr. Dearborn. I think it's extremely important. I've had a
    chance to talk to some members of management who would like to
    see the culture of safety up and down the line, empowering
    every member of Amtrak. If they see something that would
    endanger a passenger or create some problem with regards to
    safety, that they would have the power to, if need be, stop the
    train.
        I think that you have to empower people to have them focus
    on safety, to make it be job one, and I think the only way you
    can build that culture is for them to understand that there
    wouldn't be retribution. As a matter of fact, they would be
    encouraged to make sure to make the smart decisions to keep all
    passengers safe as well as the group.
        The Chairman. Good. I've got a couple of other questions
    here I think I can probably include for the record.
        I would say, you know, as we wrap this up, and I think
    Senator Wicker noted STB Chairwoman Ann Begeman is here today,
    and Board Member Deb Miller I think are here as well in the
    audience. And our hope, Mr. Oberman, is that you will be moved
    through Committee quickly so that you and our two other pending
    nominees can be confirmed by the full Senate. It's our goal to
    have a fully constituted Board at the STB as soon as possible.
        And I would also suggest that, as has been kind of one of
    the priorities of the STB Reauthorization Act, that there be
    further collaboration among Board members by allowing them to
    talk with one another about official business matters with
    proper disclosure, of course, of such discussions, and that, to
    me, is something that we really need to have start to take
    place. And so we look forward to having you join them there as
    well as the other nominees and have a fully constituted Board
    in place for once.
        But we do, again, appreciate both of you are willing to
    serve, and look forward to moving you quickly. And hopefully in
    line with that objective, I would suggest to the Members of
    this Committee who have questions for the record, that they
    submit them as quickly as possible so that we can get responses
    preferably by close of business tomorrow, but no later than
    close of business on Monday.
        It is our intention to have at our Markup next week these
    nominations reported out of the Committee and moved to the full
    Senate. So in order to accommodate that, we've got a fairly
    shortened timeline in terms of trying to get responses to
    questions for the record. So hopefully Members will get those
    to you, and then if you could turn those around as quickly as
    possible. And I realize that's a fairly tight timeframe, but I
    think in the interest of getting both of you into your
    positions and working for the American people, we want to do
    everything we can to expedite your consideration of your
    nomination.
        So I don't think we have anybody else coming by.
        Again, thank you for being here. Thanks for your responses
    to our questions. And I understand I probably missed it, but
    some families represented here today as well.
        So thank you all for your willingness to engage in public
    service, which ends up being a family commitment.
        So thank you all very much. This hearing is adjourned.
        [Whereupon, at 11:57 p.m., the hearing was adjourned.]

                                A P P E N D I X

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         Response to Written Question Submitted by Hon. Bill Nelson to
                                Rick A. Dearborn
        Passenger Rail Service. Mr. Dearborn, the administration again
    proposed slashing Amtrak funding in Fiscal Year 2019. This would affect
    service on the three long-distance train lines that run through
    Florida.
        Question. What are your views about funding Amtrak so that it can
    provide high-quality rail service on these long-distance routes?
        Answer. I support Federal investment in Amtrak's National Network,
    including long distance routes. I understand the importance of
    connecting communities across this Nation and I do believe long
    distance routes play a critical role in the Nation's transportation
    network.
        While Amtrak should always look for opportunities to operate more
    efficiently and with less taxpayer subsidies, Federal funding does play
    a critical role in continuing long-distance routes. It is essential
    that Amtrak look for opportunities to increase ridership on all of its
    routes; if Amtrak can successfully do this, the additional revenue will
    be able to further support these routes.
        I look forward to learning more about the long-distance network,
    including the service in Florida, and how best I can support these
    routes.
                                     ______

       Response to Written Questions Submitted by Hon. Maria Cantwell to
                                Rick A. Dearborn
        Amtrak Safety Culture. If confirmed, you will have a leadership
    role in a large national transportation network that last year was
    responsible for keeping passengers safe on more than 31 million trips.
    When safety is not the top priority, tragedy can often result, as we
    saw in the horrific derailment in DuPont, Washington last December
    where three people lost their lives and over 80 people were injured.
        Some of the issues that NTSB investigators focused on at their
    recent hearing on that incident were the inadequate training of
    engineers, potential flaws in the risk mitigation plan for the curve
    where the crash occurred, and lack of functional PTC on the new Point
    Defiance Bypass.
        Question 1. I am sure that you have been paying careful
    consideration to the many issues currently facing Amtrak. Can you
    discuss some of your concerns about Amtrak's safety culture, the steps
    that are being taken to improve it, and what you will do as a Board
    member on an ongoing basis to ensure that Amtrak is as safe as
    possible?
        Answer. Safety is my top priority, and this will be reflected in my
    work if I am fortunate enough to be confirmed. Additionally, I am
    committed to full PTC implementation and the establishment of a Safety
    Management System (SMS). It is also important to understand the root
    causes of the horrific accidents that occurred in the past and the
    steps being taken to prevent future incidents.
        If I am confirmed, I will closely monitor Positive Train Control
    (PTC) implementation and the establishment of a SMS. I am committed to
    the execution of both programs ensuring plans are clearly articulated,
    aggressive timelines are established, deadlines are met, and results
    are monitored.
        An SMS is a proactive risk management system which builds on
    predictive safety management methods. SMS moves us to a no fault,
    collaborative approach for safety analysis. An SMS establishes safety
    as an integral element of all business functions, and is built upon
    four components: Safety Policy, Safety Promotion, Safety Assurance and
    Safety Risk Management. SMS has been a cornerstone of improving safety
    in many industries, including aviation, health care and energy. The
    implementation of an SMS is a significant undertaking--it requires an
    organizational commitment.

        Question 2. What in your background or experience has prepared you
    to play such an important role in a large national transportation
    network?
        Answer. For over 20 years, I proudly served as a staffer in various
    roles for this institution's Members. I worked as a Staff Assistant and
    later as a Legislative Assistant for six Senators prior to being hired
    by then Senator Jeff Sessions. I served for six and a half years as his
    Legislative Director, later having served for over twelve years as his
    Chief of Staff.
        During that time, then Senator Sessions served on the Environment
    and Public Works (EPW) Committee and the Transportation Subcommittee.
    We worked on various surface transportation reauthorization bills
    together, from ISTEA through the FAST Act. Passenger rail issues were
    part of our yearly routine, and our office worked rail issues on behalf
    of our constituents and our country. Though Amtrak wasn't rolled into
    the larger transportation bill until the FAST Act of 2015, passenger
    rail issues were something we dealt with annually, as did most rural
    state offices with long distance routes.
        On top of my direct work on transportation issues, I also ran the
    Congressional Affairs division at the Department of Energy from 2003-
    2005 in the Bush Administration. My office was one of the larger
    Congressional Affairs divisions and I managed close to one hundred
    people in Washington, D.C. and across the country at the Department's
    multiple laboratories. That experience afforded me the chance to manage
    a large team while also coordinating the Administration's and
    Department's policy priorities on Capitol Hill.
        Directly after the 2016 Presidential election, I was asked to serve
    as the Executive Director for the Presidential Transition team,
    managing close to one thousand people. The amount of work we put into
    that endeavor was daunting, but highly rewarding. I was responsible for
    all Presidential appointments, all agency action planning, policy
    planning, Presidential support, and operations/logistics.
        Once the transition was complete, I was asked to serve as the
    Deputy Chief of Staff to the President. In this role, I managed the
    largest number of professional staff in the White House. My duties
    included the management and direction of the Legislative Affairs team,
    the Cabinet Secretaries, the Intergovernmental Affairs team, the Office
    of Public Liaison, the Political Affairs Department and the President's
    schedule.
        These experiences have prepared me well to serve as an Amtrak Board
    Member.

        Amtrak Funding. In Washington State, riders take 1.2 million trips
    on Amtrak trains each year, keeping a lot of cars off of our congested
    highways.
        President Trump's proposed budget would eliminate funding for long
    distance routes which would impact two National Network trains that run
    through Eastern Washington to Seattle, potentially ending service for
    over 50,000 Amtrak users in Spokane and severely curtailing service to
    the rest of the state.
        Question 3. As White House Deputy Chief of Staff, did you help
    create the President's budget proposal that would eliminate long-
    distance Amtrak routes?
        Answer. No, I did not help create the President's budget proposal
    that would eliminate long-distance Amtrak routes.

        Question 4. As a Member of the Amtrak Board of Directors, would you
    support the Administration's proposed budget cuts, or would you be an
    effective advocate for passenger rail within the Administration?
        Answer. The Amtrak Board of Directors has many fiduciary
    responsibilities to the company, which carry the obligation to ensure
    that they act in the best interests of the company.
        Last year, in its 2018 General and Legislative Annual Report,
    Amtrak reported to Congress that the elimination of the long-distance
    services would cost an additional $423 million. That would be a
    significant financial problem for Amtrak, and if confirmed, I would
    need to consult closely with the rest of the Amtrak Board and Congress.
                                     ______

        Response to Written Question Submitted by Hon. Amy Klobuchar to
                                Rick A. Dearborn
        Question. Our intercity passenger rail system carries more than 30
    million passengers each year. In Minnesota, the Empire Builder provides
    a vital link for many rural towns. Amtrak's service helps students get
    to college, workers to job centers and tourists to travel destinations.
    For cities like Winona, Minnesota where Amtrak has a station and all
    the other towns along the Empire Builder, long-distance passenger
    service provides an important economic boost.
        What would you do to ensure Amtrak continues to offer quality
    services for passengers that rely on long-distance routes?
        Answer. I believe that long-distance routes are a critical part of
    our National Passenger Rail system. I'm supportive of current long-
    distance route services and look forward to learning more about each of
    them if confirmed to the Board. I understand the importance of
    connecting rural communities. To ensure Amtrak continues to offer
    quality services for passengers, I would focus on cultivating a
    positive passenger experience, improving on-time performance (OTP), and
    modernizing Amtrak's equipment across the rail system.
        Passenger satisfaction is extremely important in a competitive
    transportation environment, and I am committed to ensuring Amtrak
    continues to offer safe, reliable, and clean services throughout its
    entire rail network. Implementing additional innovative amenities, such
    as offering WiFi services on routes that it is not currently offered on
    and improving food and beverage, will also help increase ridership--one
    of my many goals. If I am fortunate enough to be confirmed, I am
    committed to improving the entire Amtrak experience.
        Amtrak must also improve its OTP. This is especially true on the
    national network where Amtrak depends on host railroads for
    dispatching. Working to further develop improved relationships with
    host railroads will directly improve the quality of Amtrak's long-
    distance routes.
        Further, Amtrak must also look at ways to modernize and improve its
    equipment across the rail system. I understand Amtrak is investigating
    procurement opportunities for new locomotives and rolling stock, and I
    look forward to learning more about how this could potentially improve
    the quality of experience on long distance routes if confirmed.
                                     ______

     Response to Written Questions Submitted by Hon. Richard Blumenthal to
                                Rick A. Dearborn
        Russian Efforts to Influence the 2016 Election. In a pre-hearing
    meeting with Commerce Committee staff you indicated that you have had
    ``at least two meetings'' with the Special Counsel's staff.
        Question 1. Have you cooperated with Special Counsel's office
    requests for information from you regarding Russian efforts to
    influence the 2016 election?
        Answer. I have fully cooperated with the Special Counsel's
    investigation, and the investigative efforts of Committees from both
    the Senate and the House. Specifically, I have met with the Special
    Counsel's Office, the Senate Intelligence Committee, the Senate
    Judiciary Committee and the House Intelligence Committee.
        As you know, your questions relate to investigations that are
    ongoing. As such, and because my meetings with the Congressional
    Committees were transcribed, I respectfully suggest you request such
    information from your colleagues on the Committees. I have no objection
    with them sharing that information with you, and I hope they will.

        Question 2. Has the Office of Special Counsel indicated that you
    are in any legal jeopardy or that you may be a possible witness at some
    point in the investigation?
        Answer. No, the Office of Special Counsel has not indicated that I
    am in any legal jeopardy.
        Please see my response to question #1.

        Question 3. Did you list these interviews or contacts in your
    responses to this Commerce Committee's questionnaire?
        Answer. These interviews and contacts were not requested in the
    Commerce Committee's questionnaire; therefore, I did not list them.

        Question 4. A New York Times report from December of last year
    indicates that in May 2016, you received an e-mail from Paul Erickson,
    conservative operative claiming to have close ties to the National
    Rifle Association (N.R.A) and Russia, bearing the subject line
    ``Kremlin Connection.'' In the e-mail, Mr. Erickson said that he could
    arrange a back-channel meeting between then-candidate Trump and
    Vladimir Putin, the Russian president.
        Russia, he wrote, was ``quietly but actively seeking a dialogue
    with the U.S.'' and would attempt to use the N.R.A.'s annual convention
    in Louisville, KY, to make ``first contact.'' We now know that Mr.
    Ericson was having a romantic relationship with Maria Butina and that
    they made contact with each other at the N.R.A. convention.
        Did you receive an e-mail from Paul Erickson related to the
    establishment of a backchannel line of communication between Donald J.
    Trump and Vladimir Putin?
        Answer. Please see my response to question #1.

        Question 5. How did you respond to the e-mail you received from Mr.
    Erikson in May 2016 regarding a back-channel meeting between Donald J.
    Trump and Vladimir Putin?
        Answer. Please see my response to question #1.

        Question 6. When you received e-mails from Mr. Erikson related to
    the Kremlin, why didn't you immediately contact the FBI?
        Answer. Please see my response to question #1.

        Question 7. Did you ever discuss with then-Senator Sessions Mr.
    Erickson's offer to set up a meeting between then candidate Donald
    Trump and Vladimir Putin during the 2016 campaign? If so, what was his
    response?
        Answer. Please see my response to question #1.

        Question 8. Was anyone else on the Trump campaign aware that Mr.
    Erickson had contacted you with this request?
        Answer. Please see my response to question #1.
                                     ______

    Response to Written Questions Submitted by Hon. Catherine Cortez Masto
                              to Rick A. Dearborn
        Substance Abuse. As I'm sure you're aware this country is in the
    depths of a heartbreaking epidemic of opioid abuse. Nearly everyone I
    talk to can think of someone they know who has been impacted by this
    crisis and last year, it impacted Amtrak. In April 2016, two Amtrak
    employees with opioids in their system were struck and killed by a
    train in Pennsylvania. The train's engineer also tested positive for
    drugs. Random tests for railway workers in general found that positive
    results increased by 43 percent in 2015 after years of remaining flat.
    This is an issue that impacts those who suffer from addiction as well
    as the safety of passengers and those who live near railroads.
        Question 1. What do you think can be done to ensure that Amtrak
    better monitors and treats substance abuse related to safety and
    workforce retention concerns?
        Answer. I am well aware of the opioid epidemic that is continuing
    to plague our country, and I am committed to monitoring and treating
    substance abuse related safety and workforce concerns at Amtrak.
        The dangers associated with substance abuse in the workplace are an
    important issue that needs to be addressed, and I believe Amtrak is on
    the right path to doing so. Earlier this year, Amtrak increased its
    random testing rates for both hours of service and Maintenance of Way
    employees. Secondly, Amtrak has expanded its testing panel to include
    barbiturates, benzodiazepines, methadone and oxycodone, none of which
    are currently included in the Federal testing panel. Further, Amtrak
    has recently reintroduced random testing for certain non-regulated
    groups.
        I believe that Amtrak's robust testing regimen acts as a strong
    deterrence and will help Amtrak address the shifting drug and alcohol
    landscape across the country.

        Immigration. On February 1, 2018, Border Patrol agents were filmed
    on an Amtrak train in Syracuse, New York asking passengers if they are
    American citizens. As you know, Border Patrol can question anyone about
    their citizenship within 100 miles of the border if they have a
    reasonable suspicion they are in the country illegally. But almost two
    thirds of Americans live in this 100-mile zone, as well as numerous
    Amtrak routes.
        Question 2. If confirmed, do you plan to use this position to
    advocate for further cooperation with Border Patrol to allow these
    random searches to continue?
        Answer. No, I do not.

        Question 3. During your time in or after your tenure at the White
    House, have you had any discussions within the administration about
    increasing the use of Amtrak searches as a tool of immigration
    enforcement?
        Answer. No, I have not.

        Question 4. Do you believe racial profiling on Amtrak trains to be
    acceptable practice by Border Patrol agents?
        Answer. I believe all law enforcement, including the Border Patrol,
    should enforce current and existing Federal and State laws.
                                     ______

         Response to Written Questions Submitted by Hon. Jon Tester to
                                Rick A. Dearborn
        April 2016 Speech. According to your testimony under questioning
    from Senator Peters, your role during the April 2016 Trump event where
    then-candidate Trump gave a speech on foreign policy was to help
    coordinate with the Center of National Interest, who hosted the event.
        Question 1. With whom from the Trump campaign did you work on
    coordinating this event? Were any outside consultants used in
    preparation for the event? If so, please list their names and
    associations.
        Answer. I have fully cooperated with the Special Counsel's
    investigation, and the investigative efforts of Committees from both
    the Senate and the House. Specifically, I have met with the Special
    Counsel's Office, the Senate Intelligence Committee, the Senate
    Judiciary Committee and the House Intelligence Committee.
        As you know, your questions relate to investigations that are
    ongoing. As such, and because my meetings with the Congressional
    Committees were transcribed, I respectfully suggest you request such
    information from your colleagues on the Committees. I have no objection
    with them sharing that information with you, and I hope they will.

        2016 Republican Platform. You also helped develop the 2016
    Republican platform. Within the platform, it has been reported that the
    original proposal from GOP activist Diana Denman regarding U.S.
    assistance to Ukraine was weakened from providing Ukraine ``lethal
    defensive weapons'' to ``appropriate assistance.'' Ms. Denman mentioned
    that ``two gentlemen'' who were part of the Trump campaign came over,
    looked at the language, and asked that it be set aside for further
    review.
        Question 2. Could you describe the process of how the party
    platform was developed? Who approved each section of the platform
    before it was published?
        Answer. Please see my response to question #1.

        Question 3. For what part of the Republican platform were you
    responsible?
        Answer. Please see my response to question #1.

        Question 4. To your knowledge, how many individuals were
    responsible for the drafting of the 2016 Republican Party platform?
    Were you aware of each individual's responsibilities in the drafting of
    the platform?
        Answer. Please see my response to question #1.

        Question 5. You mentioned during your testimony that you were
    advised of Russia's relationship with Ukraine in the drafting of the
    platform. Who ``advised'' you? What specifically did they discuss with
    you about this section of the platform?
        Answer. Please see my response to question #1.

        Question 6. Given your role to develop the 2016 Republican platform
    and your knowledge of its drafting, are you aware of who specifically
    was responsible for the change in language from ``lethal defensive
    weapons'' to ``appropriate assistance?'' If so, who was it?
        Answer. Please see my response to question #1.
                                     ______

        Response to Written Questions Submitted by Hon. Dean Heller to
                               Martin J. Oberman
        Question 1. As you know, the Department of Energy has an
    application before the Surface Transportation Board for a certificate
    of public convenience and necessity to build the Caliente railroad to
    Yucca Mountain. Given Congress' repeated refusal to fund the Yucca
    Mountain project, I do not believe the Surface Transportation Board
    should act on this application knowing that the project is not funded
    and that it is not going to be funded.
        Do you believe the Surface Transportation Board should act on this
    application regardless of whether Yucca Mountain has been funded?
        Answer. I do not believe that the Surface Transportation Board
    should act on this application if the Yucca Mountain project has not
    been funded and is not going to be funded.

        Question 2. If confirmed, will you commit to continuing the Surface
    Transportation Board's practice of not getting out in front of other
    agencies when it is not the lead agency on a particular matter?
        Answer. If confirmed, I commit to continuing the Surface
    Transportation Board's practice of not getting out in front of other
    agencies when it is not the lead agency on a particular matter.

        Question 3. Under the Nuclear Waste Policy Act, the Federal
    Government is looking at shipping 9,495 rail casks in 2,800 trains and
    2,650 trucks hauling one cask each to Yucca Mountain over 50 years.
    These shipments would use 22,000 miles of railways and 7,000 miles of
    highways and cross over 44 states. Under previous questioning from me
    at this Committee, Federal Railroad Administrator Ronald Batory and
    Pipeline and Hazardous Materials Safety Administrator Howard Elliott
    confirmed that a transportation accident with an ensuing radiological
    release was possible.
        Given the significant number of proposed shipments, the sheer
    distance to be traveled, and the 50-year duration of these shipments,
    do you agree with Mr. Batory and Mr. Elliott that there is a real risk
    of at least one transportation accident with an ensuing radiological
    release occurring?
        Answer. The Federal Railroad Administration and the Pipeline and
    Hazardous Materials Safety Administration have primary jurisdiction and
    expertise concerning the safety of the transport of spent nuclear fuel
    by rail. I defer to Mr. Batory and Mr. Elliott's findings on the risk
    of rail transportation accidents and the potential for radiological
    release.
                                     ______

        Response to Written Question Submitted by Hon. Amy Klobuchar to
                               Martin J. Oberman
        Question. In many rural parts of the country, shippers are served
    by only one railroad, so called ``captive shippers.'' These shippers
    can face increased costs in getting their products to market. Whether
    they are shipping grain, coal or paper the increased costs get passed
    on to the consumer.
        Mr. Oberman, what steps would you take to ensure captive shippers
    have access to competitive shipping rates?
        Answer. The STB plays an important role in reviewing freight rail
    rates paid by captive shippers. Congress recognized this role in the
    2015 Reauthorization Act when it directed the STB to examine ``current
    large rate case methodologies'' and to determine ``whether alternative
    methodologies . . . could be developed, to streamline, [and] expedite''
    those cases. The agency established a rate reform task force to conduct
    this examination, and if confirmed, I look forward to working with the
    task force and the Board's many stakeholders to ensure that
    stakeholders have meaningful options with the STB to solve their rate
    disputes. I will also focus on the STB's 2016 Advance Notice of
    Proposed Rulemaking on a new rate review process for small shippers,
    which I think will be particularly useful to agricultural stakeholders.
    These efforts, as well as exploring other possibilities with
    stakeholders, my fellow Board Members and agency experts will be my
    priorities if I am confirmed.
                                     ______

     Response to Written Question Submitted by Hon. Catherine Cortez Masto
                              to Martin J. Oberman
        Substance Abuse. As I'm sure you're aware this country is in the
    depths of a heartbreaking epidemic of opioid abuse. Nearly everyone I
    talk to can think of someone they know who has been impacted by this
    crisis and last year, it impacted Amtrak. In April 2016, two Amtrak
    employees with opioids in their system were struck and killed by a
    train in Pennsylvania. The train's engineer also tested positive for
    drugs. Random tests for railway workers in general found that positive
    results increased by 43 percent in 2015 after years of remaining flat.
    This is an issue that impacts those who suffer from addiction as well
    as the safety of passengers and those who live near railroads.
        Question. As a former board Chairman of Metra, what do you believe
    we all can be doing better to monitor and treat substance abuse related
    to safety and workforce retention concerns?
        Answer. The opioid epidemic in America no doubt has had far-
    reaching impacts on public safety and industries dealing with employees
    afflicted by addiction. Metra has drug testing requirements and has
    established an employee assistance program that includes providing
    counseling for addition problems. Each railroad must establish its own
    safety culture requiring drug testing, counseling and rehabilitation,
    as well as consequences for employees who do not or cannot comply with
    safety rules. Railroads also must work closely with the Department of
    Transportation and the Federal Railroad Administration to ensure that
    they comply with Federal drug and alcohol testing regulations and
    procedures. It is imperative that railroads and the government work
    together as our Nation grapples with this tragic public health and
    safety issue.

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