[Congressional Record (Bound Edition), Volume 154 (2008), Part 11]
[Extensions of Remarks]
[Page 15332]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    A TRIBUTE TO AMERICA'S RAILROADS

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                          HON. ROBERT A. BRADY

                            of pennsylvania

                    in the house of representatives

                        Wednesday, July 16, 2008

  Mr. BRADY of Pennsylvania. Madam Speaker, we all know that the U.S. 
needs a long term strategic energy policy if we are ever to break our 
addiction to foreign oil and become energy independent. Part of that 
long term solution is to focus on a policy that allows us to begin 
using less oil today.
  The United States transportation system is the largest in the world 
and is almost entirely responsible for our Nation's dependence on using 
oil as the major source of energy. For instance, while the United 
States has only 4.5 percent of the world's population, it uses 25 
percent of the world's oil. About 60 percent of this oil is imported. 
The transportation sector consumes seven of every ten barrels of oil 
consumed in the United States.
  In addition, about 28 percent of greenhouse gas emissions, GHGs, in 
the U.S. are attributed to the transportation sector, making it the 
second largest contributor to GHG emissions, trailing only electricity 
generation. According to the U.S. Environmental Protection Agency, this 
figure is expected to rise to 36 percent by 2020.
  In a carbon-constrained world, it makes sense for government to 
invest in transportation infrastructure that will promote the use of 
technologies that improve fuel efficiency, while also reducing carbon 
emissions and traffic congestion. Railroads are the most fuel efficient 
mode of surface transportation. In 2007, freight railroads moved one 
ton of freight an average of 436 miles per gallon of fuel--roughly the 
distance between Boston and Baltimore.
  In its January 2008 final report to Congress, the National Surface 
Transportation Policy and Revenue Study Commission stated that 
``intercity passenger rail is . . . more energy efficient than many 
other modes of passenger transportation.'' The report notes that the 
average intercity passenger rail train produces 60 percent lower carbon 
dioxide emissions per passenger-mile than the average automobile, and 
half the carbon dioxide emissions per passenger-mile of an airplane.
  Using railroads more means consuming less fuel, and that's more 
important today more than ever. However, the railroads may not 
currently have the capacity to handle socially optimal amounts of 
freight and passenger traffic. Freight railroads are reinvesting record 
amounts of their own funds into their systems, but that will not be 
enough to take full advantage of railroads' potential to meet our 
transportation needs.
  One step we must take is to provide relief to states, local 
communities, and captive rail customers who continue to suffer from 
unreasonably high railroad rates and poor service. This relief cannot 
be accomplished through capital improvements alone. Reforms to reduce 
impediments to competition must also be enacted.
  Further, railroads have traditionally invested in their own networks 
and there is increased interest in public-private relationships to help 
address the projected underinvestment in our Nation's rail network. 
However, the government as a public partner has a duty to ensure that 
the public interest is best served under any agreements it enters into. 
We need to be careful when creating these partnerships as private 
businesses' objectives and motivations may not necessarily be aligned 
with the public interest. When public-private partnerships are used to 
finance, design and build roads, bridges, rail projects, and transit 
facilities, we must safeguard the public interests.
  H.R. 2116, an excellent piece of legislation introduced by my friend 
from Florida, Kendrick Meek, will provide a 25 percent tax credit for 
railroads to invest in capital expansion. This will help augment their 
financial capacity for transportation investments. As we review this 
legislation, we should also consider including a provision that ensures 
prevailing wages for the workers responsible for the construction of 
this expansion. Amtrak ridership may reach 28 million this year--the 
highest it has ever been and up from 25.8 million passengers last year. 
In fact, Amtrak ridership and revenues are up and experiencing 
significant growth in all categories: short distance, long distance, 
and Northeast Corridor services. Last month, Amtrak had the highest 
revenue and ridership of any month in its history. Fiscal year 2008 
year-to-date ridership is up 11 percent and revenues are up 14 percent 
over the previous year.
  We also need to consider extending the ``Section 45G'' tax credit for 
investments in short line track rehabilitation that expired in 2007. 
The Section 45G tax credit has helped hundreds of short line railroads 
increase the volume and rate of track rehabilitation and improvement 
programs. This allows them to offer more efficient, cost-effective, and 
environmentally friendly rail service to communities throughout the 
country.
  The key to reducing fuel consumption in transportation and our 
addiction to oil and dependence on foreign oil is by encouraging the 
use of the most fuel efficient modes of transportation--railroads. 
America's freight and passenger railroads offer a simple, cost 
effective and meaningful way to do this, thereby helping to ensure a 
sustainable future for our planet.

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