[Congressional Record Volume 156, Number 85 (Tuesday, June 8, 2010)]
[Extensions of Remarks]
[Page E1033]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           INTRODUCING GREEN RAILCAR ENHANCEMENT ACT OF 2010

                                  _____
                                 

                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                         Tuesday, June 8, 2010

  Mr. BLUMENAUER. Madam Speaker, today I rise to introduce the Green 
Railcar Enhancement Act of 2010 with 49 of my colleagues.
  This legislation will help save a critical domestic industry, create 
32,000 to 50,000 family-wage jobs, enhance the fuel economy of freight 
rail, and reduce the carbon emissions of the freight and logistics 
industry.
  As a result of the financial crisis and subsequent recession, the 
freight railcar industry neared collapse. New car deliveries declined 
from 75,000 in 2006 to fewer than 10,000 in 2010. Only a handful of 
suppliers remain operating today and there is great concern that 
several of them may not survive this downturn. Without any action to 
pull forward some future market demand, the potential loss of the 
American rail supply base is at great risk.
  The Green Railcar Enhancement Act provides a 25 percent tax credit 
for replacing or rebuilding old, inefficient railcars. The tax credit 
is limited to cars built in 2010 or 2011 and requires a minimum 8 
percent increase in capacity or fuel efficiency. In effect, the 
legislation shifts market demand from 2012-14 to this year and the 
next, which will help the rail supply industry survive these two 
treacherous years.
  This bill will continue to improve the great efficiency of rail 
transportation, which currently gets 480 ton-miles to the gallon. In 
fact, if 10 percent of the long-distance freight currently moved by 
truck switched to rail, then the national fuel savings would exceed one 
billion gallons each year. Requiring increasingly efficient rail cars 
will improve these figures.
  Upgrading our fleet of railcars will also make the rail industry more 
competitive, reduce costs for consumers, and will help relieve our 
congested highways. In fact, one freight train can carry a load 
equivalent to that hauled by 280 trucks. Shifting the movement of 
freight to rail clears congestion from our roadways, eases wear and 
tear on our commercial corridors, and clears our air. In addition to 
these environmental and system capacity benefits, rail transport 
continues to be a leader in worker safety, with one of the lowest 
worker injury rates in the transportation sector.
  Finally, by helping to pull market demand forward, our Nation will 
maintain the strong railroad supply industry and manufacturing base 
necessary to the Nation's defense.
  I look forward to working with my colleagues to pass this important 
legislation.

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