[Congressional Record Volume 154, Number 176 (Wednesday, November 19, 2008)]
[Senate]
[Page S10663]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself, Mr. Specter, Mr. Lautenberg, Mr. 
        Inouye, Mr. Brown, Ms. Stabenow, Mrs. Feinstein, Mr. Dodd, Mr. 
        Casey, Mr. Lieberman, Mr. Whitehouse, Mrs. Clinton, Mr. 
        Schumer, Ms. Snowe, Mr. Menendez, and Mr. Carper):
  S. 3700. A bill to encourage and support the development of high-
speed passenger rail transportation in the United States, and for other 
purposes; to the Committee on Finance.
  Mr. KERRY. Mr. President, this has been a volatile time for our 
financial system and our economy. Hopefully, we will be able to agree 
on a short-term stimulus relief that will help families who are 
suffering and states meet their financial obligations.
  Next, we need to create new jobs by updating our infrastructure to 
help respond to the current challenges to our economy. I believe a 
first-rate American rail system is a critical part of the efforts to 
create jobs and expand our economy. It will also help make our air 
cleaner, ease traffic congestion, save families' money and time, and 
lessen our dependence on foreign oil.
  That is why today, Senator Specter and I are introducing the High-
Speed Rail for America Act of 2008. Senators Lautenberg, Inouye, Brown, 
Stabenow, Feinstein, Dodd, Casey, Lieberman, Whitehouse, Clinton, 
Schumer, Snowe, and Menendez are cosponsors. This legislation provides 
a bold new vision of how we approach transportation policy to expand 
our economy and keep up with changes in our society.
  The High-Speed Rail for America Act of 2008 builds upon the Passenger 
Rail Investment and Improvement Act of 2008 which reauthorizes Amtrak 
and authorizes $1.5 billion over a five-year period to finance the 
construction and equipment for 11 highspeed rail corridors. I want to 
thank Senator Lautenberg for his leadership on reauthorizing Amtrak and 
making investment in high-speed rail a priority.
  Today, Amtrak's Acela train on the Northeast Corridor is capable of 
reaching 150 miles per hour. However, due to a lack of infrastructure 
improvements, the Acela train only travels at 150 miles per hour on an 
18-mile stretch in Rhode Island and a 10-mile stretch in Massachusetts. 
We must make appropriate improvements to our railroad tracks and 
bridges to allow high speed rail to work properly.
  While the U.S. is investing heavily in other forms of transportation, 
our investment in world class rail is dwarfed by other countries. For 
example, Germany's federal government gives its states $8.9 billion a 
year for rail projects, France spends twenty times more per capita on 
rail than the U.S., and the Ministry of Railways in China invested 
$19.6 billion in rail in the first half of 2008 alone. That is why we 
need to provide a constant source of funding for investment in high-
speed rail. The High-Speed Rail for America Act of 2008 will take our 
outdated and underfunded passenger rail system and transform it into a 
world class system.
  The High-Speed Rail for America Act of 2008 builds on the 
authorization of highspeed rail grants by providing billions of dollars 
in both tax exempt and tax credit bonds. It provides assistance for 
rail projects of various speeds. The bill creates the Office of High-
Speed Passenger Rail to oversee the development of high-speed rail and 
provides a consistent source of funding. This office will ensure that 
we have the leadership to keep this mission on track.
  High-speed rail is often the fastest and most reliable way to get 
from downtown to downtown between most cities 100-500 miles apart. 
High-speed rail can save up to an hour per trip when compared to air 
travel and reduces trip time by more than 50 percent compared to 
driving. The legislation provides $8 billion over a 6-year period for 
tax-exempt bonds which finance high-speed rail projects which reach a 
speed of at least 110 miles per hour. This speed is often most 
practical for corridors of less than 100 miles or for less travelled 
routes which cannot justify the investment into world class high-speed 
rail traveling at 150 miles per hour.
  The High-Speed Rail for America Act of 2008 also creates a new 
category of tax-credit bonds: qualified rail bonds. There are two 
types: super high-speed intercity rail facility bond and rail 
infrastructure bond. Super high-speed rail intercity facility bonds 
will encourage the development of true high-speed rail. The legislation 
provides $10 billion for these bonds over a six-year period. Rail 
projects that reach a speed of at least 150 miles per hour will be 
eligible for these bonds. This would help finance projects including 
the proposed California corridor and make needed improvements to the 
Northeast corridor.
  Rail infrastructure bonds will fund projects approved by the U.S. 
Department of Transportation and be part of a State's official rail 
plan. The High-Speed Rail for America Act of 2008 provides $5.4 billion 
over a 6-year period for this type of bond. The Federal Rail 
Administration has already designated ten rail corridors that these 
bonds could help fund, including connecting the cities of the Midwest 
through Chicago, connecting the cities of the Northwest, connecting the 
major cities within Texas and Florida, and connecting all the cities up 
and down the East Coast. These are projects that are ready to go, but 
they need a source of financing.
  The need for a bold shift in the way we approach transportation is 
clear. Traffic congestion continues to worsen in cities across the 
country, creating a $78 billion drain on the U.S. economy with 4.2 
billion lost man hours of work and 2.8 billion gallons of wasted fuel. 
Last year, domestic flight delays cost the economy $41 billion and 
consumed about 740 million additional gallons of jet fuel waiting on 
the ground. Passenger rail reduces congestion and is an effective 
alternative to highway and air transportation. Americans want 
alternatives--and we can deliver them.
  We must focus on making the transportation sector part of the 
solution to global climate change. The transportation sector accounts 
for approximately one-third of U.S. CO2 emissions--and 
automobiles make up 60 percent of that. Public transportation is an 
essential part of the solution to global warming. According to the 
American Public Transportation Association, public transportation 
reduces CO2 emissions by 37 million metric tons annually and 
saves the average American household over $6,000 annually.
  The demand for alternative forms of transportation is only growing. 
The number of people riding Amtrak surged by more than 13 percent in 
July 2008 from a year earlier--the most passengers carried in any month 
during Amtrak's 37 year history. Amtrak ridership set an all-time 
record for fiscal year 2008, achieving growth of 11 percent.
  As we look towards economic stimulus legislation next year, we must 
rethink the approach we have taken towards mobility in this country. 
Countries around the world have realized the benefits of high-speed 
rail and continue to build out their systems as we fall farther and 
farther behind. For far too long, we have not made adequate investment 
in our infrastructure. We cannot let this pattern continue.
  We have all heard the skeptics and cynics dismiss the idea of high-
speed rail for decades, but due to high energy prices, increased 
passenger rail ridership, and the need to reduce greenhouse gasses, the 
time is ripe for a big change. Not only will this change create a 
modern and reliable transportation network in the Untied States, it 
will provide tens of thousands of good new jobs and help stimulate the 
sluggish economy.
  I pledge to continue fighting for the development of a modern high-
speed rail system connecting the major cities across America, and I ask 
all my colleagues to support making this vision a reality.
                                 ______