[Congressional Record (Bound Edition), Volume 154 (2008), Part 6]
[Extensions of Remarks]
[Pages 8388-8389]
[From the U.S. Government Publishing Office, www.gpo.gov]




THE PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2008 AND THE RAIL 
   INFRASTRUCTURE DEVELOPMENT AND EXPANSION ACT FOR THE 21ST CENTURY

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                         Thursday, May 8, 2008

  Mr. OBERSTAR. Madam Speaker, together with Ranking Member Mica, 
Subcommittee Chairwoman Brown, Subcommittee Ranking

[[Page 8389]]

Member Shuster, and more than 30 other Members of the Committee on 
Transportation and Infrastructure, I am pleased to introduce the 
``Passenger Rail Investment and Improvement Act of 2008'' and the 
``Rail Infrastructure Development and Expansion Act for the 21 st 
Century'', or RIDE-21.
  We are introducing these bills between two significant milestones in 
railroad history. One week ago today, Amtrak marked the beginning of 
its 38th year of operation on May 1. This Saturday, May 10th is 
National Train Day, marking the 139th anniversary of the ``golden 
spike'' being driven into the ground at Promontory Summit, Utah, in 
1869. The ``golden spike'' bound the last tie connecting the last rail 
that united the Central Pacific Railroad with the Union Pacific 
Railroad, completing the transcontinental railroad.
  These two milestones represent two different conceptions of passenger 
rail. The transcontinental railroad was born thanks to the support of 
President Abraham Lincoln. He, along with Civil War leaders, envisioned 
and planned the creation of the railroad. Not only did the completion 
of the railroad result in the ability to deliver goods and people 
across the country, it ultimately bound the east with the west, further 
unifying the country as the divide between the North and the South was 
beginning to mend. At the time, the transcontinental railroad brought a 
new sense of wonder and enthusiasm for discovery and entrepreneurship 
across the country.
  In contrast, the formation of National Railroad Passenger 
Corporation, more commonly known as Amtrak, occurred at a time of 
waning support of intercity passenger rail. Amtrak was created after 
the freight railroads begged Congress to let them get out of the 
passenger rail business because it was not profitable.
  Indeed, Amtrak inherited decrepit stations and terminals, passenger 
cars that offered dated amenities, and equipment prone to failure.
  Thirty-seven years after the launch of Amtrak, America is on the 
threshold of a ``renaissance'' for intercity passenger rail that 
approaches the enthusiasm of the completion of the transcontinental 
railroad. Last year, Amtrak set a ridership record for the fifth year 
in a row, exceeding 25.8 million passengers. Its ticket revenues rose 
11 percent to more than $1.5 billion, the third straight year of 
revenue growth. This record of achievement is even more impressive 
considering that for the past eight years Amtrak has contended with an 
Administration committed to its bankruptcy.
  Indeed, these achievements are occurring when there is a greater need 
than ever for alternatives to our congested highways and skies. To 
alleviate this congestion and strengthen our energy security, we need 
to invest in intercity passenger rail. Amtrak removes almost eight 
million cars from the road annually and eliminates the need for 50,000 
fully loaded, passenger airplanes each year.
  Other countries already make an annual commitment to intercity 
passenger rail. In 2003 alone, France invested $10.6 billion in its 
rail system; Germany invested $12.4 billion; and the United Kingdom 
invested $7.8 billion. Outside of Europe, Japan invests about $2 
billion annually to its Shinkansen and China has launched a plan to 
spend a total of $162 billion from 2006 through 2010 to expand its 
railway system.
  These investments have paid off: passenger rail accounts for 32 
percent of Japan's transportation market; the Eurostar, the high-speed 
passenger train operator between Britain and mainland Europe, recently 
reported a 21.3 percent rise in passengers to 2.17 million between 
January and March 2008, compared with the same period last year, with a 
25 percent increase in ticket revenues. Indeed, you can hardly purchase 
a plane ticket from London to Brussels or London to Paris because rail 
service is faster and easier than air service.
  H.R. ----, the Passenger Rail Investment and Improvement Act of 2008 
authorizes more than $14.4 billion for Amtrak capital and operating 
grants, state intercity passenger grants, and high-speed rail over the 
next five years. The bill authorizes $6.7 billion (an average of $1.34 
billion per year) to Amtrak for capital grants and $3.0 billion (an 
average of $606 million per year) for operating grants. Past 
inconsistent Federal support has hampered Amtrak's ability to replace 
catenaries, passenger cars, bridges, ties, and other equipment 
necessary for Amtrak to provide service. These capital grants will help 
Amtrak bring the Northeast Corridor to a State of Good Repair, procure 
new rolling stock, rehabilitate existing bridges, as well as make 
additional capital improvements and maintenance over its entire 
network. In addition, the operating grants authorized under the bill 
will help Amtrak pay salaries, health costs, overtime pay, fuel costs, 
facilities, and train maintenance and operations. These operating 
grants will also ensure that Amtrak can meet its obligations under its 
recently negotiated labor contract.
  In an effort to encourage the development of new and improved 
intercity passenger rail services, the bill creates a new State Capital 
Grant program for intercity passenger rail capital projects, based on 
the New Starts transit capital program administered by the Federal 
Transit Administration. The bill provides $2.5 billion ($500 million 
per year) for grants to States to pay for the capital costs of 
facilities and equipment necessary to provide new or improved intercity 
passenger rail. The Federal share of the grants is up to 80 percent. 
The Secretary of Transportation would award these grants on a 
competitive basis for projects based on economic performance, expected 
ridership, and other factors.
  The National Surface Transportation Policy and Revenue Study 
Commission, established to develop a national transportation vision to 
address surface transportation needs for the next 50 years, recommends 
that the United States establish a high-speed rail network that spans 
the entire country. The bill authorizes $1.75 billion ($350 million per 
year) for grants to States and/or Amtrak to finance the construction 
and equipment for 11 authorized high-speed rail corridors. The Federal 
share of the grants is up to 80 percent. The Secretary of 
Transportation would also award these grants on a competitive basis.
  Many of Amtrak's service routes outside the Northeast Corridor suffer 
from poor service reliability and on-time performance because of 
freight traffic congestion. This congestion prevents Amtrak from 
retaining and attracting new ridership, and increases Amtrak's 
operating costs. The Department of Transportation Inspector General 
recently reported that if Amtrak achieved an 85 percent on-time 
performance outside the Northeast Corridor in fiscal year 2006, it 
would have saved Amtrak $136.6 million, or almost one-third of its 
operating budget. Amtrak is required by law to have preferred access on 
freight corridors; however, freight railroads do not always comply with 
Amtrak's access rights. The bill addresses this problem by providing 
congestion grants to Amtrak and the States for high-priority rail 
corridors in order to reduce congestion and facilitate ridership 
growth.
  Federal support of Amtrak was cut drastically in fiscal years 2000 
and 2001, forcing Amtrak to assume a large amount of debt to stay in 
operation. Amtrak has aggressively targeted this debt, paying down $600 
million from fiscal years 2002 through 2007. Our bill helps Amtrak to 
take further steps to reduce its debt, authorizing $345 million each 
year for debt service through FY 2013. This funding will allow Amtrak 
to focus its resources on improving existing services and making 
additional capital and operational improvements.
  Finally, no Federal guidelines currently exist to mediate disputes 
between commuter rail providers and freight railroads over use of 
freight rail tracks or rights-of-way, nor is there a standard forum for 
negotiating commuter rail operating agreements. The bill establishes a 
forum at the STB to help complete stalled commuter rail negotiations, 
helping our rail network operate as efficiently as possible.
  The Committee is also introducing, H.R.__, the ``Rail Infrastructure 
Development and Expansion Act for the 21st ``Century'', authorizing $12 
billion of tax-credit bonds and $12 billion of tax-exempt bonds for 
high-speed rail corridors over the next 10 years. This legislation will 
be referred to the Committee on Ways and Means and I look forward to 
working with Chairman Rangel and Ranking Member McCrery on this 
important initiative.
  Amtrak and high-speed rail are essential to create the world's 
preeminent national transportation network.
  I look forward to working with Members of the Committee and the House 
to pass these important bills.

                          ____________________