[Congressional Record (Bound Edition), Volume 148 (2002), Part 8]
[Senate]
[Pages 11565-11567]
[From the U.S. Government Publishing Office, www.gpo.gov]




                AMERICA CANNOT AFFORD AN AMTRAK SHUTDOWN

  Mrs. FEINSTEIN. Mr. President, I rise today to reiterate my steadfast 
and unwavering support for Amtrak.
  I believe that President Bush, Transportation Secretary Norm Mineta, 
Amtrak President David Gunn, and the Congress need to work together 
immediately to prevent our passenger rail system from grinding to a 
halt and stranding millions of commuters coast to coast.
  Amtrak's passenger rail service is an essential link in our 
transportation system and our economy.
  Every day Americans use Amtrak and local commuter rail systems that 
depend on Amtrak to get to and from work. And as we approach the July 
Fourth holiday, more and more Americans are relying on Amtrak trains 
for their vacation travel, especially this year because of security 
changes at our Nation's airports.
  I cannot think of a worse time for Amtrak to have run out of money 
and I find it unconscionable that Members of Congress and the President 
are not unified to see that our trains continue to run.
  What will happen if Amtrak shuts down? You can be sure the roads will 
jam up even more and air travel will become an even greater headache.
  I agree with Secretary Mineta when he said Monday night that the 
burden is not on President Bush alone to save the rail system from 
bankruptcy. However, it is important to point out that President Bush 
alone can keep Amtrak out of bankruptcy by announcing today that he 
will approve the company's application for a $200 million loan guaranty 
and support an additional appropriation of $200 million in the 
supplemental appropriations bill that is now in conference 
negotiations.
  Here is how I believe we must respond to the current situation. 
First, I believe the $200 million emergency loan guaranty that Amtrak 
needs to keep the trains running must be approved immediately. This 
$200 million will allow Amtrak to again find private financing that has 
dried up over the past several months because of the company's 
deteriorating financial condition.
  Second, the members of the conference committee on the supplemental 
appropriations bill are trying to include a $200 million emergency 
appropriation for Amtrak. If this bill can emerge from conference 
negotiations this week and if the President agrees to sign the 
legislation, the funds will get to Amtrak before the July Fourth 
holiday.
  Third, I have joined many of my colleagues in a commitment to work 
for $1.2 billion for Amtrak in fiscal year 2003. This is the amount 
Amtrak needs and I believe it is the amount Congress should deliver.
  I cannot understand why President Bush continues to stand by his 
paltry budget request of $521 million and threaten to veto the 
Transportation appropriations bill if more than that amount is provided 
to Amtrak.
  Fourth, I believe the Senate should take up Senator Hollings' 
legislation to fund Amtrak for the next 5 years. The National Defense 
Rail Act would authorize $4.6 billion annually from 2003 to 2007 for 
passenger rail service. The legislation, which passed the Commerce 
Committee by a vote of 20-3 in April would fund rail security 
improvements, high speed rail development, and operational costs for 
existing rail routes.
  I believe Congress must take each of these four steps to preserve and 
improve Amtrak.
  I strongly believe that Amtrak is not a failure, it is the government 
that has failed Amtrak. If we do not properly fund our rail system, how 
do we expect it to thrive?
  Since 1971, when Amtrak was founded, only $25 billion has been spent 
on passenger rail, compared to over $750 billion that has been invested 
in highways and aviation. The Federal Government has made a commitment 
to fund road construction and expand aviation capacity, but we have 
always come up short to provide fair funding for our rail system.
  The Federal Government provided $15 billion in payments and loan 
guaranties to aid the airlines after the September 11 terrorist 
attacks. Why can't we provide $200 million to keep our trains running?
  Imagine the chaos that will ensue if Amtrak does shutdown this 
summer. There will be even more traffic on our roads and air travel 
will slow down if trains are not an option for commuters heading to 
work or travelers on vacation.
  On Monday, Senator Boxer and I wrote President Bush to ask him to 
approve Amtrak's $200 million loan guaranty. This letter illustrates 
how important Amtrak is to California and why a shutdown would threaten 
the State's economy.
  As we mention in the letter, last week a transportation think tank 
declared southern California and the Bay Area as the two urban areas of 
the country with the longest traffic delays. Californians do not need 
any more gridlock.
  Yet if Amtrak shuts down, thousands of people in California who 
depend on Amtrak service every day will be stranded. Amtrak trains that 
travel throughout the State and regional commuter trains could both 
grid to a halt if the $200 million loan guaranty is not forthcoming.
  Since most rail lines in California are run by Amtrak or depend on 
Amtrak, everything is in jeopardy. These include three Amtrak routes 
funded by the State and the Federal Government: 1. the Capitol Corridor 
route between San Jose and Auburn; 2. the San Joaquin route between 
Oakland and Bakersfield; 3. the Pacific Surfliner route between San 
Diego and San Luis Obispo.
  These are three of the most successful routes in the United States. 
In fact, all three are among the top five intercity rail corridors and 
the Pacific

[[Page 11566]]

Surfliner is the fastest growing route in the nation. Overall the State 
of California has added 28 new daily trains since 1995 and over 1.5 
million new passengers.
  But a shutdown will also threaten some of California's largest 
regional transportation systems including: 1. Caltrain, the rail 
service between San Francisco and San Jose 2. Metrolink, Southern 
California's regional transit system 3. The Coaster, San Diego County's 
regional train.
  In fact, on Monday Metrolink passengers in Southern California found 
these flyers on their seats. The flyer updates commuters on the 
imminent Amtrak shutdown and tells them to ``explore other commute 
options.''
  This week I also received a letter from the North County Transit 
District on the impact an Amtrak shutdown will have on San Diego 
County's Coaster Commuter Rail Service.
  It is clear to me that a shutdown of Amtrak will be devastating for 
rail passengers across the Nation. I believe we must act immediately to 
avoid it. I urge President Bush to provide a $200 million loan guaranty 
to prevent a shutdown of Amtrak service in California and the rest of 
the country.
  I ask unanimous consent to print additional material in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  U.S. Senate,

                                    Washington, DC, June 24, 2002.
     Hon. George W. Bush,
     President of the United States, The White House, Washington, 
         DC.
       Dear Mr. President: We are writing to urge you to approve a 
     $200 million federal loan guaranty to allow Amtrak to 
     continue to operate. Amtrak is extremely important to 
     California. After New York, California has the second highest 
     ridership in the country. Without this funding, thousands of 
     people in California who depend on Amtrak service every day 
     will be stranded.
       Just last week, a respected analyst rated Los Angeles and 
     San Francisco-Oakland as the two urban areas of the country 
     with the longest annual delays per rush-hour driver. 
     Californians have gridlock. Without Amtrak, the 69,000 daily 
     commuters that use the three Amtrak commuter train systems 
     will not be able to get to work. These services also have 
     financial support from the state of California, which spent 
     $72 million in the state's fiscal year 2002.
       Amtrak is important and growing outside the Northeast 
     Corridor. For example, California has the second most 
     traveled line in the country: the ``Pacific Surfliner''--from 
     San Diego to Los Angeles. Amtrak West has increased the daily 
     number of trains from 36 intercity trains in 1995 to 64 
     intercity trains in 2001, which is a 78 percent increase. All 
     but three of these are in California. The number of 
     passengers has increased by 52 percent and passenger related 
     revenues have increased by 49 percent during the same period 
     of time.
       We strongly believe that the federal government must 
     continue to support Amtrak and the partnership with the State 
     of California for a viable national intercity passenger rail 
     service. Again, we urge you to provide a $200 million loan 
     guaranty to prevent a shutdown to Amtrak service in 
     California and the rest of the country.
           Sincerly,
     Dianne Feinstein,
       United States Senator
     Barbara Boxer,
       United States Senator
                                  ____



                                            Metrolink Commuter

                                                    June 24, 2002.
       Dear Metrolink Commuters: Within the last few weeks, the 
     nation learned that Amtrak is facing urgent financial 
     challenges to continue national passenger rail services 
     through the end of the federal fiscal year (October 2002). As 
     of June 19, 2002, Amtrak had not been able to secure a needed 
     $200 million bank loan. David L. Gunn, the newly appointed 
     Amtrak CEO, testified before a U.S. Senate Sub-committee on 
     that day that failure to obtain $200 million in federal loan 
     guarantees or cash by July 1 would leave him no choice but to 
     begin an orderly shutdown of rail passenger service 
     nationwide, to place the company into bankruptcy, and to 
     place the corporation's assets under a court appointed 
     trustee.
       You may be aware that Metrolink dispatchers, locomotive 
     engineers and conductors are provided under a contract with 
     Amtrak. Our contract with Amtrak is similar to many other 
     passenger rail operator contracts with Amtrak throughout the 
     country. The Metrolink contract, which expires on June 30, 
     2004, covers all Amtrak costs of providing the 145 Amtrak 
     employees needed to dispatch trains and to operate 
     Metrolink's 138 weekday trains and 32 weekend trains.
       At this time, we have no additional information as to 
     exactly how a shutdown of Amtrak passenger rail service would 
     affect Metrolink. Metrolink sent Amtrak and federal officials 
     a letter on June 10th stating that no federal subsidies are 
     used for the Metrolink contract and that there should be no 
     cash flow concerns for Amtrak by continuing to provide the 
     contract services. To date, Amtrak has not provided a 
     response. We have also begun to explore the limited options 
     we have to try to avoid an interruption in Metrolink services 
     in case Amtrak is unable or unwilling to meet its contractual 
     obligations. In order to ensure uninterrupted safe operation 
     of Metrolink, we need the continued availability of the 
     existing Amtrak certified and qualified employees.
       While we encourage you to purchase your July Metrolink fare 
     media as usual, you should also explore other commute 
     options. Should Metrolink services be interrupted we will 
     reconcile any fare payment issues. We also will provide 
     updated information through the media, on our website 
     (www.metrolinktrains.com), and with fax and email updates to 
     the employee transportation coordinator that participate in 
     our Corporate Pass Program. You may also call (800) 371-LINK.
       We apologize for any inconvenience or uncertainty that this 
     potential Amtrak action may have. We have hope that Amtrak 
     and the federal government can secure the needed funding to 
     avert the crisis.
     David Solow, CEO
                                  ____

     Hon. Dianne Feinstein,
     U.S. Senate, Hart Building, Room 331, Washington, D.C.
       Dear Senator Feinstein: On behalf of the Southern 
     California Regional Rail Authority, operators of Metrolink, I 
     am writing to urge your support for an immediate Amtrak loan 
     guarantee. We contract with Amtrak to provide our commuter 
     rail service throughout six counties of Southern California. 
     If bridge funds are not provided to Amtrak, our service is at 
     risk for shutting down as well.
       As you are probably aware, David Gunn, Amtrak's new 
     president recently announced that Amtrak needs a $200 million 
     loan guarantee by June 30th from Congress or the company will 
     have to begin an orderly shutdown of all services. Metrolink 
     dispatchers, locomotive engineers and conductors are provided 
     under a contract with Amtrak. Our contract with Amtrak is 
     similar to many other passenger rail operator contracts with 
     Amtrak throughout the country. The Metrolink contract, which 
     expires on June 30, 2004, covers all Amtrak costs of 
     providing the 145 Amtrak employees needed to dispatch trains 
     and to operate Metrolink's 138 weekday trains and 32 weekend 
     trains.
       Our commuter rail services are obtained through cost-
     reimbursement contracts. This means we are not subsidized by 
     Amtrak. Nonetheless, Amtrak has been unable to ensure 
     continued Metrolink commuter rail service. In order to ensure 
     uninterrupted safe operation of Metrolink, we need the 
     continued availability of the existing Amtrak certified and 
     qualified employees.
       Metrolink operates in the nation's most congested region. 
     Shutting down our service will not only impact our 
     ridership--34,000 daily--but also contribute to increased 
     peak hour congestion on the highways. Metrolink removes one 
     lane of traffic during peak hours on the highways we 
     parallel. Without our service, those lanes will be flooded 
     again with frustrated drivers.
       Please contact President Bush to request his support for 
     Amtrak's request of $200 million in loan guarantees. We 
     respectfully urge you to work with Congress to ensure 
     continued operation of passenger rail and the contract 
     services upon which Metrolink depends.
           Sincerely,
                                                      David Solow,
     Chief Executive Officer.
                                  ____

     Hon. Dianne Feinstein,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Feinstein: I am writing to you on behalf of 
     the North San Diego County Transit Development Board to 
     request your support for Amtrak and its provision of NCTD's 
     ``Coaster'' Commuter Rail Service in San Diego County.
       David Gunn, Amtrak's new President, has recently announced 
     that unless Amtrak receives a $200 million loan guarantee by 
     the end of this month, the company will have no choice but to 
     shut down all passenger train services nationwide. NCTD, 
     along with three other public agencies in California, 
     contract with Amtrak for the operation of critical commuter 
     rail and inter-city rail services. Our commuter rail services 
     are obtained through cost-reimbursement contracts and do not 
     contribute to the national subsidy requirements for Amtrak's 
     overall network. Nevertheless, Amtrak has been unable to 
     provide assurance of continued commuter rail service 
     operation for the Coaster.
       The shutdown of commuter rail service in San Diego County 
     would severely impact 5,000 Coaster passengers per day, add 
     significantly to peak hour freeway congestion, and reduce 
     regional mobility. Due to the complex requirements of 
     railroad operations, Amtrak's services cannot be readily 
     replaced overnight if Amtrak shuts its doors.
       Please contact the President to request his support for 
     Amtrak's request for $200 million

[[Page 11567]]

     in loan guarantees, and work with Congressional leaders to 
     ensure continued operation of passenger rail and the contract 
     services upon which Coaster operations depend.
           Sincerely,
                                                Thomas P. Walters,
     Washington Representative.

                          ____________________