[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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
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
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
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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