On Wednesday, the House Transportation and Infrastructure Committee marked up RIDE 21 – Don Young’s high-speed rail bill – and a bill reauthorizing appropriations for Amtrak over the next three years. The bills were reported out during a mark-up at which the Committee reported a number of bills. There was very little discussion of either of them and they were approved on voice votes. It is important to note, the RIDE 21 bill must be approved by the House Committee on Ways and Means before it goes to the floor. No action in that committee is scheduled.

The Railroad Infrastructure Development and Expansion Act for the 21st Century (RIDE 21) would provide $60 billion for high-speed rail projects and rail infrastructure. The bill was introduced jointly by Chairman Don Young (R-Alaska), ranking member James Oberstar (D-Minnesota), Railroads Subcommittee Chairman Jack Quinn (R-New York) and Railroads Subcommittee ranking member Corrine Brown (D–Florida). A summary of the legislation follows at the end of this report.

RIDE 21 (HR 2571) was originally introduced in the 107th Congress, but never marked up because of a dispute between different labor unions. At t oday's markup, Chairman Young announced that the dispute was settled, allowing consideration of the bill to proceed. Chairman Young has long been an advocate for increased investment in high-speed rail infrastructure. He lauded the positive affects RIDE 21 would have on intercity passenger rail. “RIDE 21 is an historic commitment from this Congress to improve and expand our nation’s rail infrastructure and develop a viable high-speed rail system,” said Young. “This is a state-empowering bill in which the states will call the shots. States will select and design their own corridors, choose whether to use steel-wheel or Maglev trains, and also determine how and on what schedule they will finance and construct projects.”

Ranking member James Oberstar commended Chairman Young for his relentless efforts in finally bringing RIDE 21 to a committee vote. Oberstar, like Young, favors a strong and viable intercity passenger rail system. Oberstar feels “RIDE 21 will bring high-speed regional passenger service to important intercity corridors throughout the country, helping to relieve gridlock on the highways and in the air.” The House Ways and Means Committee must now mark up portions of the high-speed rail bill that fall under their jurisdiction.

The same quartet that introduced RIDE 21, also jointly sponsored the ‘Amtrak Reauthorization Act of 2003’, which will reauthorize appropriations for Amtrak for the next three years. The Amtrak reauthorization bill would authorize appropriations for Amtrak totaling $2 billion per year for the next three years. Such a figure is more than Amtrak asked for in their legislative grant request.

The bill mandates that Amtrak submit a yearly business plan for the subsequent fiscal year, including, as applicable, “targets for ridership, revenues, and capital and operating expenses.” With respect to capital projects, Amtrak must make available “a description of the work to be funded, a work timetable, cost estimates, and a list of other funding sources if the project is not entirely funded by the Federal Government.” Additionally, the Transportation Secretary will be responsible for distributing funds to Amtrak in the form of grants.

At the markup, there was ubiquitous praise for Amtrak President and CEO David Gunn. Ranking member Oberstar feels David Gunn has provided a vision to get Amtrak back to a state of good repair. Oberstar received a chuckle when he commented that Amtrak “has not been blessed with the most enlightened management.” Jack Quinn believes David Gunn is “the right man – in the right position – at the right time. Quinn added that reauthorizing appropriations for Amtrak gives a renewed sense of purpose to Amtrak employees and customers. Another staunch Amtrak supporter, Rep. Jerry Nadler (D-New York), feels having a redundant transportation system is essential to our national security. Nadler’s district in New York includes the site of the World Trade Center. The Congressman commented that Amtrak was the only way for him to get back to Washington after the terrorist attack.

For Aviations Subcommittee Chairman John Mica (R-Florida), a long-time Amtrak detractor, the Amtrak reauthorization bill “will not solve the problems of Amtrak.” Mica told the committee, Amtrak debt is now $5 billion. Even with the $2 billion/year, “the Northeast Corridor will still not be able operate at what the government considers high-speed, said Mica. The Florida Republican favors allowing states in the Northeast Corridor choose their own rail operator.

Summary of the Railroad Infrastructure Development & Expansion Act for the 21st Century

The bill establishes authority for states or interstate compacts to issue $12 billion in federally tax-exempt bonds and $12 billion in federal tax-credit bonds for infrastructure improvements for high-speed passenger railroad infrastructure. Other provisions include:

• The Secretary of Transportation may approve overall corridor design that includes the following elements:
• Has in place agreement of owning freight railroad if its rights-of-way are to be used;
• Eliminates/avoids railroad grade crossings that would impede high-speed operations;
• Applies prevailing wage rate standards to construction projects;
• Has an interstate compact in place for multi-state corridors.
• The Secretary of Transportation may approve projects to complete a major portion of the infrastructure to complete a viable and comprehensive corridor for high-speed rail as defined in 49 U.S.C. sec. 26105 (including corridors designated under ISTEA/TEA-21) at 125 mph or higher.
• The Secretary of Transportation may give preference to projects that:
• Use a mix of tax-credit and tax-exempt bonds;
• Link rail passenger service with other modes of transportation;
• Are expected to have a significant impact on air traffic congestion;
• Are expected to also improve commuter rail operations;
• Have all environmental work completed and are ready to commence; or
• Have received state or local financial support.
• The Secretary may designate $1.2 billion per year for 10 years of private-activity tax-exempt bonds, plus $1.2 billion per year for 10 years in tax-credit bonds. Authority to designate unused annual amounts of each type of bond carries over to subsequent years.
• State and local government bonds used for high-speed rail infrastructure must be designated by the Secretary to be tax- exempt.
• Tax-exempt bond amounts are excluded from the $225 million cap on state-issued federally tax-exempt bonds.
• Potentially displaced workers are provided protection through hiring preference for positions with new providers of high- speed rail passenger service.
• States are required to submit annual reports on status of bonds and bond-funded projects.
• The legislation reauthorizes and modifies the existing Swift Rail Development Act, a program to develop high-speed rail corridors, by extending the program authority through fiscal year 2011.
• $100 million per year in general fund grants that are subject to appropriation.
• Changes funding emphasis from technology development (from $25 million per year to $30 million per year) to corridor development (previously corridor planning) (from $10 million per year to $70 million per year) and allows acquisition of locomotives, rolling stock, track and signal equipment with program grants.
• The legislation also expands the existing Railroad Rehabilitation & Infrastructure Financing (RRIF) loan and loan guarantee program by increasing funding authority from $3.5 billion to $35 billion of outstanding loan principal at any time. Modifies the RRIF program in the following ways:
• Interstate compacts as well as states are eligible for assistance.
• Magnetic levitation systems as well as steel-wheel systems are eligible for assistance.
• Amount available for primary benefit of Class II and III railroads is increased from $1 billion to $7 billion out of $35 billion in total loan principal authority.
• Eliminates obstacles in the current RRIF program (structure of loan cohorts, collateral requirements, artificial limits on loan amounts, prior rejection requirement).
• The Secretary of Transportation must approve or disapprove an application within 180 days after receiving it.
• The Secretary may not assess applicant fees or other charges.
• The Secretary is required to publish review standards and criteria within 30 days after enactment.
• Applicants must apply prevailing wage rate standards to construction projects.