[Congressional Record (Bound Edition), Volume 147 (2001), Part 12]
[Extensions of Remarks]
[Pages 17976-17977]
[From the U.S. Government Publishing Office, www.gpo.gov]



    ON THE INTRODUCTION OF THE RAIL INFRASTRUCTURE DEVELOPMENT AND 
            EXPANSION ACT FOR THE 21st CENTURY (``RIDE-21'')

                                 ______
                                 

                             HON. DON YOUNG

                               of Alaska

                    in the house of representatives

                      Tuesday, September 25, 2001

  Mr. Young of Alaska. Mr. Speaker, Today, I introduce the Rail 
Infrastructure Development and Expansion Act for the 21st Century. 
RIDE-21 is the first truly workable proposal for developing high-speed 
passenger rail infrastructure in the United States.
  As Chairman of the Transportation and Infrastructure Committee I have 
made easing congestion on the ground, in the air and on the water the 
top priority this Congress. I believe that construction of a true high-
speed passenger rail system in the United States is an integral piece 
of that solution.
  The United States needs safe and efficient high-speed rail, whether 
it is steel wheel or magnetic levitation. It will help reduce 
congestion on America's highways and air lanes by connecting urban 
centers. It will also provide the traveling public more options.
  The tragedies of September 11, and the resulting short-term cessation 
of air travel, demonstrated the need for transportation alternatives 
for passengers. The increase in the amount of time it will now take to 
clear airport security has added to the time it takes to travel by air, 
potentially making high-speed rail a competitive alternative in some 
regional markets. Simply stated, it is time for the United States to 
make high-speed passenger rail a transportation priority.
  RIDE-21 is not the only proposal before Congress that makes federal 
dollars available for the development of high-speed passenger rail. 
Other bills, such as H.R. 2329 in the House and S. 250 in the Senate, 
are well intended and are designed to address high-speed rail 
infrastructure needs as well; but those bills fall short. There are 
three significant reasons why other proposals will not get our nation 
any closer to a comprehensive national system of high-speed passenger 
rail corridors: (1) They do not provide enough funding, (2) they do not 
provide sufficient flexibility in the hands of States in making 
transportation decisions, and (3) what little money is provided comes 
at too high a cost to the Federal Treasury.


                           Higher Investment

  RIDE-21 generates more than $71 billion for high-speed passenger rail 
infrastructure through the sale of bonds and the approval of federal 
loans and loan guarantees. In the hearing held by the Subcommittee on 
Railroads of the Committee on Transportation and Infrastructure on July 
25, we learned that Amtrak estimates that it would cost up to $70 
billion to build high-speed rail in the United States. That's what I 
mean when I say that RIDE-21 is the first truly credible high-speed 
passenger rail proposal. It gets the job done.
  In addition, I am very concerned that states may misunderstand the 
scope of other bills.

[[Page 17977]]

Amtrak's Northeast Corridor needs $20 billion to upgrade the southern 
portion of the Northeast Corridor alone. Meanwhile, on September 12, 
U.S. Rail News reported that Virginia and North Carolina estimate that 
it will take more than $2.5 billion just to build high-speed rail 
infrastructure from Washington, D.C., to Charlotte, North Carolina. 
Proposals such as these and similar projects in Florida and in the 
Midwest would far surpass the funding level provided in competing 
bills.


                   Too Little Flexibility for States

  Under competing proposals, Amtrak has too much control over the 
approval and funding of high speed systems. Amtrak's financial 
condition is in serious jeopardy, and I am concerned about its ability 
to perform the tasks assigned to it under these bills, such as issuing 
bonds, managing a fund to repay the bonds, managing the proceeds from 
the bonds, and repaying the bonds. I also have doubts that Amtrak could 
even raise the intended $12 billion. As the Congressional Budget Office 
noted in a report on H.R. 2329 issued yesterday, bond buyers would be 
very reluctant to pay the face value of the bonds in later years 
because of the high risk that Amtrak could not repay the bonds. 
Moreover, Amtrak should concentrate on its core business of operating 
passenger trains and carrying mail and express and premium traffic.
  RIDE-21 puts the federal and state governments in control of the 
development of high-speed passenger rail and balances their roles. On 
the one hand, it places the federal government, through the Department 
of Transportation, in control over approving the basic design of the 
high-speed rail network in the United States. Among its roles, the DOT 
must determine whether a corridor is a comprehensive and viable high-
speed corridor. The DOT must determine whether the proposal makes a 
significant step toward achieving speeds of at least 125 miles per hour 
on the corridor. The DOT must determine whether all at-grade rail 
crossings are eliminated.
  On the other hand, RIDE-21 puts states and compacts of states in the 
conductor's seat by giving them flexibility to address their 
transportation needs. States are free to develop the high-speed rail 
proposals that the DOT will review. States can choose which technology 
to employ and which routes make the most sense. States can take their 
project proposals directly to the DOT, without having to go through 
Amtrak as an intermediary. States, not Amtrak, control the bond 
proceeds, how they are managed, and how they are spent.
  RIDE-21 does not leave states holding the bag, though. In fact, the 
cost of RIDE-21 to the states is about the same as the cost to the 
states of H.R. 2329. H.R. 2329 requires states to provide Amtrak with a 
minimum of 20 percent of the project cost. The states' contributions 
are then intended to grow over time so that Amtrak can use that money 
to pay off the bonds. If the states use a similar ``sinking-fund 
structure,'' they will need to put up about the same amount of money so 
that it will grow into enough to pay off the bonds. Of course, under 
RIDE-21 states need not use a ``sinking fund,'' because they are given 
flexibility to determine how to pay off the bonds.
  Finally, Amtrak benefits from RIDE-21. As the only operator of high-
speed passenger trains in the United States, Amtrak will be a partner 
with the states in many projects. And, it will have a clear competitive 
advantage when it comes time to bid on contracts to operate trains on 
this new rail network. As owner of the Northeast Corridor, Amtrak can 
also benefit from infrastructure improvements there, financed by the 
states under this bill. Amtrak can focus on operating trains more 
efficiently while the DOT and states worry about the improvement of 
passenger rail infrastructure. Therefore, if it demonstrates its 
ability to seriously compete for operation of new high speed corridors, 
Amtrak will actually benefit under RIDE-21.


                         More Bang for the Buck

  RIDE-21 is fiscally responsible. The $71 billion investment in 
infrastructure through RIDE-21 will cost the federal government about 
$6 billion. The other bills, which provide for only a $12 billion 
investment, will cost the treasury about $7.4 billion, according to 
CBO. Any taxpayer can tell that RIDE-21 is a better value.
  Finally, RIDE-21 creates jobs. $71 billion to construct high-speed 
passenger rail infrastructure means good jobs for hard-working 
Americans.
  I encourage Members to study RIDE-21 carefully and to become 
cosponsors of this bill.

                          ____________________