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


                                                        S. Hrg. 115-873

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

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

                                HEARING

                               BEFORE THE

                         COMMITTEE ON COMMERCE,
                      SCIENCE, AND TRANSPORTATION
                          UNITED STATES SENATE

                     ONE HUNDRED FIFTEENTH CONGRESS

                             SECOND SESSION
                               __________

                             JULY 26, 2018
                               __________

    Printed for the use of the Committee on Commerce, Science, and 
                             Transportation
                             
                             
                  [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]                             


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

                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE
                    
54-981 PDF                 WASHINGTON : 2024                   
                

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                     ONE HUNDRED FIFTEENTH CONGRESS

                             SECOND SESSION

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

                            C O N T E N T S

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

                               Witnesses

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

                                Appendix

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

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

                              ----------                              


                        THURSDAY, JULY 26, 2018

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        Ricky Allen Dearborn. I go by Rick.

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

        Residence: Information not released to the public.

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

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

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

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

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

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

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

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

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

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

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

        Secretary of Energy Excellence Award 2004

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

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

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

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

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

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

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

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

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

    2. Have you ever been investigated, arrested, charged, or held by 
any Federal, State, or other law enforcement authority of any Federal, 
State, county, or municipal entity, other than for a minor traffic 
offense? If so, please explain.
    Yes, DUI in college, 1986; College sign removed from campus 
property, not charged--1986; Carrying an open container in Old Town, 
Alexandria, VA--held briefly and released, not charged--1990. Public 
disturbance--Pallbearer, VA, not convicted--2009.
    3. Have you or any business or nonprofit of which you are or were 
an officer ever been involved as a party in an administrative agency 
proceeding, criminal proceeding, or civil litigation? If so, please 
explain. No.
    4. Have you ever been convicted (including pleas of guilty or nolo 
contendere) of any criminal violation other than a minor traffic 
offense? If so, please explain.
    DUI in 1986, college years.
    5. Have you ever been accused, formally or informally, of sexual 
harassment or discrimination on the basis of sex, race, religion, or 
any other basis? If so, please explain. Never.
    6. Please advise the Committee of any additional information, 
favorable or unfavorable, which you feel should be disclosed in 
connection with your nomination.
    Not that hasn't already been listed.
                     d. relationship with committee
    1. Will you ensure that your department/agency complies with 
deadlines for information set by congressional committees? Yes, of 
course.
    2. Will you ensure that your department/agency does whatever it can 
to protect congressional witnesses and whistleblowers from reprisal for 
their testimony and disclosures? Yes.
    3. Will you cooperate in providing the Committee with requested 
witnesses, including technical experts and career employees, with 
firsthand knowledge of matters of interest to the Committee? Yes.
    4. Are you willing to appear and testify before any duly 
constituted committee of the Congress on such occasions as you may be 
reasonably requested to do so? Yes.
                                 ______
                                 
                       Resume of Rick A. Dearborn
Employment
The Cypress Group--April 2018-Present
Partner; Partner in a twenty-person firm that provide strategic. 
consulting. lobbying, and independent research for a broad variety of 
financial services companies, trades, and funds. Representative clients 
include: Visa, InterContinental Exchange, Verizon, Hunt, Peabody, 
Lighthouse, Nomura, Barclays, BNP Paribas, Citi, Wells Fargo, Loews, 
PWC, Managed Funds Association, and Primerica. Hedge and private equity 
fund clients are confidential, but typically have over $4 billion AUM. 
Formulate comprehensive government relations strategies--particularly 
for firms in transition--which include: risk/opportunity analysis, 
resource allocation, personnel review, trade association participation, 
PR and communications firm retention, PAC formation and management, and 
think tank interaction.
The President of the United States of America--January 2017-March 2018
Deputy Chief of Staff: Responsible for the day-to-day operations of 
100 staff in five separate Executive Office of the President (EOP) 
departments--Office of Legislative Affairs, Office of Cabinet Affairs, 
Office of Political Affairs, Office of Public Liaison and the Office of 
Intergovernmental Affairs. In addition to managing each of the outward 
facing offices of the White House, a main function of implementing the 
President's policies is achieved by active participation in Principal 
Committee meetings with the policy shops inside the EOP--NEC, NSC and 
DPC. Strategic planning and implementation on all policy fronts with 
each of these councils and all EOP departments managed remains both a 
daily and longer-term function.
President-Elect Transition Team--November 2016-January 2017
Executive Director: Managed all aspects of the President-Elect's 
Transition team efforts. Daily responsibility included the direction 
and management of the core components of the Transition Team's 400+ 
member Departments--Agency Action, Presidential Appointments, Policy 
Implementation and President-Elect Support. Led Cabinet selection 
efforts, policy development for guidance and pass off to WH policy 
councils for day one action, landing team and beachhead team 
development for all major Departments and Agencies and all preparations 
and support efforts tor the President-Elect, First Lady, their family 
and the senior EOP team.
U.S. Senator Jeff Sessions--January 2005-January 2017
Chief of Staff/State Director: Directly managed sixty-person office/
operation in Washington, D.C. and all state staff in six Alabama 
offices. Directly responsible for all policy/legislative matters, 
press, budgeting, and staffing. Managed campaign operations including 
press operations during Senator Session's reelection in the 2014 
election cycle. Extensive interface with state/local elected officials, 
all state/national business interests, advocacy interests, and 
constituent interactions.
United States Department of Energy--March 2003-December 2004
Assistant Secretary of Congressional Affairs: Led all Congressional, 
Intergovernmental and tribal government outreach efforts on behalf of 
the Secretary. Advanced the policy priorities of the President and 
Department on Capitol Hill. Advised each subcabinet department and 
developed legislative strategies to advance each department's policy 
priorities. Held the first Tribal Energy Summit by the Department. 
Advanced the foundation of support for the Energy Policy Act of 2005, 
major components were drafted in 2004, reintroduced and passed in 
August of 2005.
U.S. Senator Jeff Sessions--January 1997-March 2003
Legislative Director: Devloped, organized and implemented all aspects 
of the Senator's legislative operation. Advised Senator on all roll 
call votes, cosponsorships, and legislative priorities. Drafted 
legislation and developed Committee and floor strategies for same. 
Passed over 40 pieces of legislation. Managed entire legislative staff 
and maintained a professional and cooperative work environment with 
little staff turnover. Maintained a strong network of contacts with 
industry, public policy, and advocacy groups. Approved all 
correspondence and floor/committee statements. Advised Senator on 
matters in his committees. Sen. Sessions' committees; Senate Armed 
Services Committee (Chairman, Fairyland); Senate Judiciary Committee 
(Chairman, Admin. Oversight and the Courts); Senate Health, Education, 
Labor and Pensions; Senate Budget Committee; Joint Economic Cmte. Also, 
the Senate Environment and Public Works Committee (1997-1999).
Senate Steering Committee--July 1996-December 1996
Chairman, Senator Kay Bailey Hutchison
Executive Director: Served as the Chairman's director of strategy and 
floor operations. Orchestrated multiple Special Orders on the Senate 
Floor to highlight a more conservative policy agenda. Worked with the 
Senate Republican leadership, Steering Committee Senators, Committee 
staff and personal office staff to advance the Steering Committee's 
policy agenda and provide the Senate Republican leadership with 
alternative conservative legislative proposals on a variety of policy 
issues, Promoting a more conservative Judiciary was a key focus of the 
Steering Committee during this period.
The American Medical Association--May 1996-July 1996
Congressional Affairs
Assistant Director: Liaison between the national organization and 
Capitol Hill. Focused on communicating organized medicine's legislative 
priorities to the Senate Leadership, Senate Finance and Labor 
Committees. Specific responsibilities included negotiating with Members 
and staff on patenting of medical procedures. telemedicine and patient 
confidentiality, maternity stay legislation and antitrust issues. 
Worked to target the AMA's political action committee's (AMPAC) focus 
on incumbents and challengers supportive of organized medicine.
The Heritage Foundation--June 1993-May 1996
Director, Congressional Relations, U.S. Senate: Served as the Senate 
liaison for The Heritage Foundation to all Senate offices on Capitol 
Hill. Coordinated with more than 40 policy analysts to develop, package 
and market their policy alternatives for Senate sponsorship. Worked 
extensively with the Senate Commerce Committee staff and Heritage 
analysts to develop comprehensive Telecommunications legislation. 
Developed and coordinated with Heritage analysts, the Senate Finance 
Committee staff and key Senate offices, legislative language for 
inclusion in the 1996 Welfare Reform bill. Provided multiple briefings 
on domestic and foreign policy for key Senators and their staff. Also, 
assisted Heritage public relations department in coordination of 
editorials and letters to the editor for Senate offices on targeted 
issues.
Senate Republican Conference Secretary: January 1991-May 1993
Secretary, Senator Trent Lott (November 1992-May 1993)
Secretary, Senator Bob Kasten (January 1991-November 1992)
Deputy Director: Responsible for day-to-day operations of Senate 
Leadership offices for Senators Trent Lott and Bob Kasten. Established 
working relationship with the six Senate Republican Leadership offices, 
the Republican National Committee, the National Republican Senatorial 
Committee, the National Republican Congressional Committee and 44 
Senate Republican personal offices. Created and disseminated the 
Interest Group Review reports, developed internally. Provided daily and 
weekly national polling data and voting attendance reports for all 
Senate Republican offices. Separately, developed anti-crime bills for 
both Senators Lott and Kasten. These bills had two primary provisions 
focusing on rural crime and crimes against seniors. Developed all press 
strategies for the legislation and traveled with Senator Kasten 
throughout the state of Wisconsin to promote his bill in town halls and 
with law enforcement officials. This legislation was adopted by the 
U.S. Senate in 1994. Served as Director of Coalitions on the Kasten for 
Senate campaign in late summer/fall of 1992.
National Republican Senatorial Committee--March 1988-December 1990
Senior Legislative Analyst: Began in the finance division in 1988; 
working on low donor direct mail. Worked to develop written responses 
for direct mail operations. Promoted to political division in late 
1988. Served as the NRSC's legislative analyst, researching and 
tracking roll call votes on legislation for use in campaign media 
development. Created strategies for paid and earned media opportunities 
for over 15 targeted Senate campaigns. Sent to Iowa in October of 1990 
to help direct campaign field work and GOTV efforts for Congressman Tom 
Tauke's Senate campaign.
Education
Bachelor of Arts in Public Administration/Economics, University of 
Oklahoma, Norman, Oklahoma--December 1987

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

References--Available upon request

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

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

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

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

    Thank you for this opportunity to appear before you today and for 
your consideration of my nomination to the Surface Transportation 
Board.
    First, I want to introduce my wife Bonnie without whom, of course, 
I would not be here--or anywhere for that matter.
    Also with me today are our son, Justin, and our daughter, Maren, 
and our granddaughter, Esmae. Our family also includes our daughter-in-
law, Sara, and our grandsons, Meyer and Emmet, who are watching at 
home.
    It is both an honor and an exciting challenge for me to be 
nominated to serve on the Surface Transportation Board. It has been my 
commitment from a young age to devote my career to public service and 
it has been my privilege to have served in several public positions 
over the years--elected and appointed--except for a long hiatus when 
the voters of Illinois decided they would prefer me to work in the 
private sector.
    Five years ago, the Mayor of Chicago appointed me to the Board of 
Directors of Metra. Metra is the second largest commuter railroad in 
the country, carrying 300,000 passengers a day. Although I had never 
worked in the railroad industry, I welcomed the opportunity to help 
what had been a troubled agency regain its footing and provide honest 
and efficient transportation to the public. Shortly after my 
appointment to the board, the other board members elected me chairman, 
a position which provided the opportunity to work in a bi-partisan 
manner with my fellow board members to undertake the enormous task of 
restoring Metra's public credibility and confidence. While the press 
has referred to my success in this effort, Metra's turnaround was the 
result of the hard work of Metra's entire 11 member board and our 
outstanding CEO, Don Orseno.
    Needless to say, my nearly four years at Metra required my total 
immersion and continuous education in the railroad industry. What 
better place to learn railroading than the Chicago terminal, the most 
intense railroad hub in the western hemisphere, maybe the world?
    Metra operates 750 trains each day on the same tracks as 500 
freights and 100 Amtrak trains. I quickly learned that all aspects of 
our national rail system are fundamentally interconnected.
    I also learned how important the rail system is to the entire 
national economy and that railroads cannot function, or even survive, 
if all elements do not work smoothly together, each recognizing the 
interests and priorities of the other. I remember gently reminding one 
frustrated Metra commuter who texted to complain about another 
``freight delay'' on his morning commute that his job in Chicago's Loop 
likely wouldn't have existed but for the contributions to the economy 
made by the freight railroad which he was complaining about.
    At the same time, I learned to value the stellar on-time 
performance of Metra--better than 95 percent--despite having to co-
exist every minute with the freights and Amtrak. Any passenger service 
must deliver good on-time performance to survive and thrive. And one 
cannot lead a commuter railroad--or any railroad--for more than a few 
hours without coming to grips with the enormous cost of maintaining and 
improving railroad infrastructure.
    Having become knowledgeable about and a champion of the railroad 
industry during my term at Metra, when a seat later opened up on the 
STB, my desire to serve was as strong as ever.
    The longer I am on this planet, the more aware I become that in our 
democracy, each of us has both the opportunity and the obligation to 
contribute to the common good in our own way. In my case, having gained 
expertise in the railroad industry, together with my many years in both 
public office and as a trial lawyer, I believe I have the experience to 
take advantage of this opportunity to continue to fulfill my 
obligations as a citizen.
    If confirmed, I will bring not only my past experience, but a fresh 
outlook. At Metra, it became apparent that many aspects of the railroad 
industry operate on the basis of ``that's always the way we have done 
it.'' Honoring precedent and not changing systems that are not broken 
are important values to which I adhere and there are often sound 
reasons to continue operations and policies used in the past, 
particularly with respect to railroads.
    Nevertheless, it is also critical to be willing and able to 
question practices if they appear to be archaic and ineffective at 
meeting the changing needs of consumers and businesses or keeping pace 
with technological advancement and the global economy.
    Congress recognized this need in the 2015 Reauthorization Act when 
it directed the STB to examine ``whether current large rate case 
methodologies are sufficient, not unduly complex, and cost effective'' 
and ``whether alternative methodologies exist, or could be developed, 
to streamline, expedite, and address the complexity of large rate 
cases.''
    Continuing to implement this mandate, along with the STB's newly 
granted authority to initiate investigations into service issues, 
present both the opportunity to improve the regulatory system and the 
challenge to do it right. To be sure, as the STB continues to move 
forward under the Reauthorization Act, it should do so judiciously with 
due regard to protecting the vibrancy of both railroads and shippers.
    My entire career has been based on a commitment to well thought-out 
approaches to setting government policy, pursued only after thorough 
homework and consultation with available experts while ensuring the 
participation of all stakeholders. That is the approach I will follow 
if confirmed to serve on the STB.
    I will work to ensure that all constituents--railroads, shippers, 
working men and women, communities--and others are treated fairly and 
are afforded a forum for the constructive resolution of disputes.
    Thus, it's a great time to return to public service as a member of 
the STB to tackle these exciting new missions.
    If confirmed, I pledge to you that I will work in the bi-partisan 
manner in which the STB was designed, and which I experienced with 
great success at Metra, to continue to bring rational and fair 
decisions to the railroad industry.
    Thank you again for this opportunity. I look forward to your 
questions.
                                 ______
                                 
                      a. biographical information
    1. Name (Include any former names or nicknames used): Martin J. 
Oberman.
    2. Position to which nominated: Member, Surface Transportation 
Board.
    3. Date of Nomination: July 17, 2018.
    4. Address (List current place of residence and office addresses):

        Residence: Information not released to the public.

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

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

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

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

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

        1989 to present, attorney, sole practitioner

        1988-89, partner, Gould and Ratner

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

        1977-81 (approximately) associate, Gottlieb and Schwartz

        1973-74 General Counsel, Illinois Racing Board

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

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

        Summer of 1967, laborer Rock Road Construction Co.

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

        January-September 2013, Member, Midway Airport Advisory Panel

        Metra, Board member, October 2013-June 2017

        Chairman, February 2014-November 2016

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

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

        Art Institute of Chicago

        Beverly Country Club

        Yale Club of New York

        Chicago Council on Global Affairs

        Chicago Architecture Foundation

        Chicago Council of Lawyers. President, 1996-97

        past member, American Bar Association

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

        To my knowledge, none of these organizations restrict 
        membership.

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

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

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

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

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

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

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

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

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

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

  d.  Provide the results of the citation, disciplinary action, 
        complaint, or personnel action.
    No.
    2. Have you ever been investigated, arrested, charged, or held by 
any Federal, State, or other law enforcement authority of any Federal, 
State, county; or municipal entity, other than for a minor traffic 
offense? If so, please explain. No.
    3. Have you or any business or nonprofit of which you are or were 
an officer ever been involved as a party in an administrative agency 
proceeding, criminal proceeding, or civil litigation? If so, please 
explain. No.
    4. Have you ever been convicted (including pleas of guilty or nolo 
contendere) of any criminal violation other than a minor traffic 
offense? If so, please explain. No.
    5. Have you ever been accused, formally or informally, of sexual 
harassment or discrimination on the basis of sex, race, religion, or 
any other basis? If so, please explain. No.
    6. Please advise the Committee of any additional information, 
favorable or unfavorable, which you feel should be disclosed in 
connection with your nomination.
    None, other than what appears on my resume and as stated above.
                     d. relationship with committee
    1. Will you ensure that your department/agency complies with 
deadlines for information set by congressional committees?
    Yes, I believe that congressional oversight is essential to our 
government's proper functioning and must be respected.
    2. Will you ensure that your department/agency does whatever it can 
to protect congressional witnesses and whistle blowers from reprisal 
for their testimony and disclosures? Yes.
    3. Will you cooperate in providing the Committee with requested 
witnesses, including technical experts and career employees, with 
firsthand knowledge of matters of interest to the Committee? Yes.
    4. Are you willing to appear and testify before any duly 
constituted committee of the Congress on such occasions as you may be 
reasonably requested to do so? Yes.
                                 ______
                                 
                      Resume of Martin J. Oberman
Career Experience
Law
1989 to present, Complex civil litigation across a broad array of 
substantive matters, including medical and legal malpractice, 
commercial disputes, local taxation, constitutional rights, employment 
and university tenure discrimination issues, civil rights, consumer 
fraud, shareholders derivative, securities fraud, RICO violations, and 
land use. Argued appeals in Federal and state appellate courts. 
Admitted to practice in the U.S. Supreme Court, Illinois Supreme Court, 
U.S. Courts of Appeals for the Third and Seventh Circuits, and the U.S. 
District Court for the Northern District of Illinois.

1988-89; partner, Gould and Ratner.

1979-81 associate, Gottlieb and Schwartz.

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

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

Past member. American Bar Association

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

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

2013-2017 Member, Board of Directors, Metra.

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

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

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

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

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

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

   Examples of legislative priorities and achievements:

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

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

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

   Best Alderman award from Independent Voters of Illinois.

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

Yale University
Bachelor of Arts, Psychology, 1966

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        Report of the Amtrak Chicago Gateway Blue Ribbon Panel
        
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

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

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

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

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

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

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

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

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

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

  7.  Environmental review requirements that apply to rail projects 
        should be consistent among transportation modes, coordinated 
        among agencies, and prioritized for projects of national 
        importance.
        
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
        
    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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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).

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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.

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
        
    Metra Rock Island District train crosses tracks used by Amtrak 
Chicago-St. Louis trains, and BNSF and UP freight trains, at UD Tower 
in Joliet before Metra platform was relocated.

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

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

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
        
    Metra SouthWest Service passes through two track funnel at Belt 
Junction.

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

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

    Two additional complications make a bad situation even worse:

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

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

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

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

   add additional tracks along most of the Corridor;

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

   construct the Metra flyover discussed below.

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Chicago Union Station.

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

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

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

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

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

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
        
    Carbondale-Chicago train on St. Charles Air Line passes over Port 
Huron-Chicago train south of Union Station before beginning backup move 
into Union Station via connecting track (out of picture to left).

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

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

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

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

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

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

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

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

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    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.

                                  [all]