HomeMy WebLinkAboutMT/WY Assn of RR Passengers (2) MTWYarp
DEDICATED TO PRESERVING, IMPROVING AND INCREASING
RAIL PASSENGER SERVICE IN MONTANA AND WYOMING.
AUGUST 2003
Jim, thanks for the phone call. The Montana Department of Transportation sent me a copy of
the Empire Builder report this morning, I will certainly share those finding with Sen. Burns. Also,
Sen. Burns will be co-sponsoring a Amtrak Reauthorization bill today with Sen. Hutchison and Sen.
Lott to provide an alternative to the President's bill.
Neither the President's bill or other Amtrak legislation will come to the floor anytime soon. The
House is currently out of session and the Senate is working on Energy legislation through Friday and
then will go out of session for the month of August. ^mtrak will not be dealt with until September at
the earliest.
Thanks
Jarrod
For Immediate Release: July 30, 2003
Contact: Kevin Schweers
(202) 224-9767
Senator Hutchison Introduces Sweeping Passenger Rail Bill Vows "National or Nothing"
Approach to Amtrak
Washington-Sen. Kay Bailey Hutchison (R-TX) today introduced the American Rail Equity Act
(AREA), major legislation to overhaul Amtrak, saying the federal government has not gone the
distance to make the national passenger rail system a success.
"My bill will address the inequities created by thirty years of putting Amtrak on the back
burner," the Senator said. "Either we commit to dramatically improving rail for the entire country or
we abandon the pretense of a national system and turn it over to the states and private companies.
Our motto for passenger rail is National or Nothing!"
Senator Hutchison said the national passenger rail system has been largely neglected, with
the exception of the Northeast Corridor, which runs from Washington, D.C. to Boston. She cited
lackluster on-time rates as well as the differences in travel time between cities. A traveler can take a
train from Washington, D.C. to New York, for example, in under three hours. But for a Texas traveler
who wants to go a shorter distance, from Austin to Dallas, the trip takes well over four hours, a
significant disincentive to use the system. AREA addresses these problems by providing for
sweeping capital improvements, imposing on-time standards that will make rail more appealing to
riders, and upgrading the system for efficiency.
The Senator's bill, cosponsored by Senators Conrad Burns, Trent Lott and Olympia Snowe,
will:
* Provide a plan for Amtrak over the next six years, including an allocation of $12 billion in operating
expenses * Establish a national passenger rail system from Amtrak's current routes
* Create an independent non-profit organization, the Rail Infrastructure Finance Corporation (RIFCO),
to underwrite $48 billion in government-backed tax credit bonds and administer a trust fund to repay
the bonds over twenty years
* Create a rail office at the Department of Transportation to be responsible for recommending capital
projects for funding by the RIFCO.
* Provide a framework for dispute settlement between freights and Amtrak with the condition that
freights accepting federal funds for improvements must allow Amtrak to meet its schedule
"As our country continues to grow and our cities and highways become more congested, it's
time for a viable national rail system," Senator Hutchison said. "Americans want an alternative to
planes and autos. Amtrak could be that alternative, but we must build it for success, not failure."
Senator Hutchison chairs the Surface Transportation and Merchant Marine Subcommittee of
the Senate Commerce, Science and Transportation Committee, which has jurisdiction over Amtrak.
RE: Amtrak - Hutchison - "Further Comments"
Although the newspaper articles about the Hutchison/Burns/Snow/Lott bill aren't clear on the issue
we have confirmed that the 20% match applies only to the capital and does not apply to the $12
billion in operating. That makes it more likely that Senators from Montana and other states with
long-distance routes will support it.
Jim,
These are the points of the draft bill I spoke of in my voice message to you on July 28th. The bill is
intended as a counter-proposa~ to the A~min-~stratioh's-prop(~sa[~vhiCilWiii beleie~ed'tomorrow. We
would like to get a response from you as soon as possible so we can pass it on to
the Burns office.
Key points of Senator Hutchison's Amtrak Bill
Major provisions in the current draft;
Reauthorize Amtrak for 6 years (through FY 2009) to coincide with TEA reauthorization.
Establish a National Passenger Rail System. The System consists of Amtrak's current routes.
Establish an independent nonprofit organization, The Rail Infrastructure Finance Corporation
(RIFCO), to underwrite government-backed tax credit bonds and administer a trust fund to repay the
bonds over 20 years.
Create a Rail Office at DOT. This office, in conjunction with the States will be responsible for
recommending capital projects for funding by the RIFCO.
To resolve scheduling conflicts with freights, Amtrak would have access to a dispute
resolution procedure at the STB. Any freight accepting funding for improvements must agree to allow
^mtrak to meet its schedule.
The total package will be $60 billion over 6 years. It authorizes $12 billion in operating
expenses from the general fund for Amtrakl and $48 billion in bond authority.
Thanks, I hope to hear from you soon.
Tom Steyaert, Planner Multimodal Planning Bureau Rail, Transit & Planning Division
Montana Dept. of Transportation
AFTER READING THE ABOVE, I THINK WE OWE SEN BURNS
SOME TYPE OF CORRESPONDENCE TO THANK HIM FOR HIS
EFFORTS. THE SOONER THE BETTER AND REMEMBER
WHAT IS SAID IN THE LITTLE ARTICLE AT THE START THAT
NOTHING WILL BE DONE UNTIL AFTER LABOR DAY, SO GET
THOSE LETTERS, EMAILS AND ETC GOING.
FROM WYOMING MEMBER
ECONOMIC DEVELOPMENT
9. ' PASSENGER/LIGHT FREIGHT RAIL SERVICE
The Wyoming Association of Railroad PasSengers has initiated a proposal to study the
creation of a passenger rail/light freight train corridor between Denver, Colorado and Spokane,
Washington.
We recognize the potential economic benefits a passenger/light freight rail service traveling
through Wyoming could have for our members and for the entire the State.
We support the establishment of passenger/light freight rail service between Denver and
Spokane, with a route that would bring the train through the State of Wyoming.
HAVRE DALLY NEWS
Amtrak official takes message to the people
By Tim Leeds/Havre Daily News, Montana
July 31, 2003
Amtrak is taking a message about the need for passenger rail service to the people.
Ray Lang, director of government affairs for Amtrak in Chicago, met with Havre leaders
Tuesday on his way to talk to leaders in every town the Empire Builder serves from Minot, N.D., to
Spokane, Wash.
"What I'd like to do is get you involved in the process," he told them.
President Bush's budget request was only half what Amtrak says it needs to operate. David
Gunn, president of Amtrak, requested $1.81 billion a year for the next five years, while Bush asked
Congress for $900 million.
Last year, Gunn said that if Amtrak runs out of money, he would shut down the entire operation
rather than eliminate parts of the system. Lang confirmed Tuesday that Gunn is maintaining that
position.
"As long as we're around, we'll be in Havre," Lang said during a meeting with Havre Mayor Bob
Rice, Havre Area Chamber of Commerce executive director Debbie Vandeberg and Havre Job
Service Center manager Para Harada. Rice said he hopes that some long-term resolution to Amtrak
funding can be found. The possibility of losing the Empire Builder seems to an annual situation on the
Hi-Line, he said.
"Just when you think you're out of the woods, you're not," he said. "For us to cry 'wolf' every
year is fruitless."
Lang, who has worked in his position with Amtrak for nine years, agreed. Lang said part of the
reason he is traveling the route is to let people of the communities served by passenger rail service
know that Amtrak officials realize how important passenger trains are to those communities. That is
being reinforced on his trip this week, he said. The Empire Builder is the only public transportation for
many towns in northern North Dakota and Montana, he said.
He is contacting the mayors and Chambers of Commerce in the communities the Empire
Builder serves, so Amtrak can notify them when key debates and votes on Amtrak's budget come up
in Congress, Lang said.
The Bush administration unveiled a plan Monday to overhaul the operation of Amtrak over six
years. Lang said Amtrak had not been briefed about the plan, but that part of it appears to turn the
operation of long-distance trains like the Empire Builder, which passes through Havre on its route
from Chicago to SeaEle and Portland, over to the states they operate in.
That would require creating multistate compacts to cover the operation, Lang said, which is a
very difficult process. Different compacts would be required for each of the 16 routes. A compact for
the Empire Builder would involve eight states, he said.
There does not appear to be any federal funding in the administration's plan for the
long-distance routes, he added.
Rice and Vandeberg both said the problem is not geeing support along the Hi-Line or from
U.S. Sens. Max Baucus and Conrad Burns or Rep. Denny Rehberg. They said the problem is geeing
support from the southern part of the state, and firmer support from Gov. Judy Martz. Lang said he
will meet with Martz when he is in Whitefish on Thursday. All governors in the states involved need to
know how complicated seeing up the multi-state compacts would be, he said.
The Bush proposal to change the administration of Amtrak probably won't be debated in
Congress until next year, if at all, he said. Amtrak's focus now is to get the fiscal year 2004
appropriation up to Amtrak's request, he added.
Lang said the House Appropriation Committee's request for $900 million, $320 million more
than a subcommittee recommendation, flies against the desires of the majority of the House. A letter
to all representatives in support of funding the full $1.8 billion Amtrak requested was signed by 219
representatives, one more than the majority of 218, Lang said. Fully funding Amtrak has even more
support in the Senate, he added.
Cun,-Js fivc -ycsr fu~,ding plan for ,~mtr.3k ~ncludc-.~ maintcn~nce and ~eP~ir~. ~ t~'ccks 3nd other~
infrastructure and Amtrak cars and engines, Lang said. Since Gunn took over in May 2002,' the rail
service has repaired 18 of more than 100 pieces of wrecked equipment, Lang said. "We were one
derailment away from shutting down," he said. "(Gunn's plan) fixes the system and gets us into a
state of good repair."
GOVERNOR MARTZ PLEDGES TO KEEP AMTRAK IN MONTANA
WHITEFISH - Governor Judy Martz today at a meeting with Amtrak Governmental Affairs Director
Ray Lang pledged her continued strong support to keep Amtrak's Empire Builder line servicing
Montana. The Empire Builder crosses eight Midwestern and Western states along its route from
Chicago to Seattle and Portland.
"The Empire Builder is very important to Montana and the Hi-Line," said Governor Martz. "It
not only provides good jobs, but it also brings visitors to Montana, provides access to medical service
for our rural residents, and gives people another travel option when storms close our highways."
As Western Governor's Association Chair, Martz told Lang she has directed her staff to
develop a WGA resolution in support of Amtrak passenger service that she will present to her fellow
Western Governors at their annual meeting in Big Sky, Montana this fall.
Martz stated that she is pleased with Amtrak~s recognition of the importance of national
passenger rail routes such as the Empire Builder. However, she expressed concern that proposed
decreases in federal funding could reduce or eliminate funding for the route.
The Governor pointed to the results of a recently completed state study as evidence of the
importance of the Empire Builder to Montana's economy. The study, which was sponsored by the
Montana Departments of Commerce, Agriculture, and Transportation, concluded that the Empire
Builder contributes approximately $13 million annually to Montana's economy. The study also noted
that ridership and related economic benefits could be even greater if Amtrak had enough passenger
cars to meet the demand for Empire Builder seats.
"As this study shows, Amtrak plays a vital role in the service of this state," I~lartz said. "We will
leave know stone unturned and will do everything in our power to convey that message to our
Congressional delegation. Our economy would suffer a sedous blow if the Empire Builder
were shut down."
The meeting between Governor Martz and Amtrak's Lang came at the end of a weeklong
series of Amtrak meetings with Hi-Line mayors and other local officials about the future of the Empire
Builder.
The Empire Builder will celebrate 75 years of service in 2004. With 12 stations in Montana
alone, the Empire Builder had Montana boardings and deboardings of nearly 110,000 in 2002.
For more information on the study of the Empire Builder's economic benefits to Montana,
please call (406) 444-7646. The information is also available online at www. mdt.state.mt.us.
Kris Goss, Education Policy Advisor and Deputy Communications Director
Office of the Governor; State Capitol Helena, MT 59620 (406) 444-3862
(Mr Ray Lang was the main speaker at the Region 8 meeting of NARP in Shelby the last of April)
A WALL STREET JOURNAL POLL
The Wall Street Journal, which ought '~o know better, invites readers to answer this question:
"Should ,~ntrak scale back its service to only its profitable routes?" The question is written
~ backwards--to vote FOR train service, v~e NO--and assumes there are profitable routes. As of this
writing, "yes" is ahead with 54% (481 votes out of 884 cast), but who knows how many people
misread the question just like the WSJ misread the facts?
As of 12:00 noon (EDT), July 30th, the totals were NO 1037 votes (59%), YES 729 votes
· (41%) Assuming the WSJ readership is more astute than the average bear, the vote tallies are quite
· favorable. (Especially in light of the Bush Administration Rail Plan to restructure Amtrek!).
"It's deja vu all over again," he said.
COMMENT ON THE pOLL
The editors of the Wall Street Journal are having the results of their unofficial Amtrak poll
shoved right down their collective throats! (I'm sure it's a distinct surprise to them that there is such a
ground swell of support for the rail carrier.)
Many of the replies express outrage that the federal government "invests" in air and road but
"subsidizes" rail.
If these folks aro not NARP members, hero's a pre-selected group of potential advocates to
whom membership applications should be sent forthwith!
ANNUAL MEETING
October 4~ has been set aside for our annual meeting of the MT/WY arp. Where is
the big question. Where should we meet that will bring in the most members. Next
year is the big election for us. I mean the states and nation, so we should make plans
for what we should do, and how we should do it without getting into names or parties. It
was disappointing the Iow turn out at the Region 8 meeting in Shelby of members of
our group. Are most of our members complacent? Do you just want somebody else
to do all the work? We could use everyone's opinion on a lot of things. We do have
stickers available. Would like a cap with our name on it for ;12/15.
Let hts as time ~s out.
FACT SHEET
The Passenger Rail Investment Reform Act of 2003
Embargoed until 5:00 p.m., Monday, July 28, 2003
The Bush Administration is committed to,reforming our intemity passenger mil system to create a truly
nationm system. The Passenger Rail Investment Reform Act of 2003 builds on the successful service models
used in several areas around the country to provide states and localities greater tlexibility to plan and invest in
rail service operations to create a truly national system.
The Administration believes that passenger rail should operate just as every other mode of passenger
transportation with states and local communities, using capital investments supported by federal funds,
operating rail service in their areas.
Every mode of transportation ~ceives federal subsidies. Passenger rail should be no exception. The
Administration's plan removes the burden of infrastructure investment from Amtrak and places it, as with all
other transportation modes, with the federal government.
The Administration believes that states, not Amtrak, are best equipped to decide where rail service is
important. States should be empowered to choose the rail service provider of their choice, whether it's
Amtrak, a private company or a public transit agency. Following a transition, the Administration's
proposal would allow states to submit proposals for passenger rail capital investment to the U.S.
Depm,ment of Trausportation, as they have successfully done for highway and transit capital investments.
Ama, ak would transition into three companies:
A private passenger rail company that would operate trains under contract to states and multi-state
compacts -just as the current Amtrak operates trains under contract to commuter rail agencies;
· A private rail infrastructure company that would maintain and operate the infrastructure on the
Northeast Corridor under contract to a multi-state Northeast Corridor Compact. Title to Amtrak's
current tracks, stations and other infrastructure on the Northeast Corridor will be held by the federal
government and leased to the Northeast Corridor Compact; and
· Th~ National Passenger ~!~ C~.rporati~n, ,,y~tich w. culd continueas ,. g,werv~ent ~co~eration that
would retain Amtrak's current right to use the tracks of the freight railroads, and the Amtrak corporate
name. Both the track-access rights and the Amtrak brand would be provided under contract to states
and multi-state compacts for qualifying passenger rail service they sponsor.
Separating train operations and infrastructure ownersNp is not a new concept. Train operations and
infrastructure ownership have for decades been split in the United States. Amtrak operates trains over
more than 22,000 miles of track in the United States, but owns only 730 miles of track (mostly on the
Northeast Corridor between Washington, D.C. and Boston, and in Michigan). All other tracks are owned
either by freight railroads or by the states.
Multi-state compacts are not new. Multi-state coalitions are akeady operating intercity rail services, and
some are planning for future high-speed rail operations. The Administration believes these cooperative
partnerships between the states, the federal government and freight railroads, will improve the efficiency
of intereity passenger rail service as a viable alternative to air and highway travel in some corridors.
PROVEN MODELS OF SUCCESS
The Cascades - A New Paradigm for Passenger Rail
Over the past ten years, the states of Washington and Oregon have invested roughly $170 million developing
a new, innovative, high-quality passenger rail line fi:om Portland, Oregon, to Seattle, Washington~ State
funds have been used, in partnership with the fi:eight railroad that owns the track, to straighten track, level out
grades and mztke other improvements that have reduced the travel time between the two cities. New,
comfortable trams were and The states
have and have
This project continhes to grow in popularity and ridership, demonstrating the kind of support and
innovative planning that results when communities and states take the lead in identifying and addressing their
needs for passenger rail service.
Unfortunately, federal support for this effort has been seattershot at best. Some federal funding was
devoted to the capital investments, and an indirect operational subsidy ~,~ ?'-o~ided by virtue of the federal
government's subsidy of Amtrak.
The Administration believes that this kind of project, developed by states that have worked to provide
quality passenger rail service where communities want and need it, should be the model for federal support.
Had the Administration's proposal been in place, Washington and Oregon could have turned to the
federal government to cover 50 percent oftbe cost of the station and track upgrades and purchase of the
trains. While the states would still have covered operational subsidies, they would have had a meaningful
choice in selecting a company to operate the trains - with the potential cost savings that could have resulted
from competition for the contract.
Other states are exploring the potential of such multi-state coalitions for the planning ofintereity
passenger rail service and eventually high-speed rail service.
The Administration believes that promoting this type ofco0perative effort between the states, in
partnership with the federal government and the freight railroads, can place intercity passenger rail service on
a solid foundation - one in which financing and investment requirements are cloar, priorities are clearly
established, and from which the potential growth of intercity passenger rail can be realized.
PROVEN MODELS OF SUCCESS
The Northeast Corridor - Transitioning to the New Model
The Northeast Corridor between Washington, DC and Boston, Massachusetts is by far Amtrak's busiest
ronte. Amtrak transports roughly half of the combined rail and air passenger traffic between New York City
and Washington, DC, and it owns significant stretches of track on the Corridor. As a result, the Northeast
Corridor's transition to the new model will look somewhat different.
While firebox revenues on the Corridor more than cover Amtrak's associated operating expenses, those
gevenues are insufficient to reesver Amtrak'S cost of ca'l~ital on this route. Pantrak's ownership of tracks and
stations on the Corridor, and its responsibility for maintaining them represent a constant drain on the
company's finances. Today, 30 years a~er Amtrak's founding, a multi-billion dollar backlog of needed
capital investment has accumulated.
The Administration's proposal would relieve the private passenger rail operations company of the
need to fund capital investment to maintain the Corridor and address the accumulated capital backlog. The
bill proposes to convert Amtrak's current property on the Corridor to federal government ownership. The
federal government would undertake to fund the capital backlog over a period of several years, and would
lease the Corridor to a Northeast Corridor Compact composed of the Corridor states.
During a multi-year transition period, Amtrak, followed by the newly created passenger rail service
provider company, would hold the contract for tram operations on the Corridor. The passenger rail
infrastructure company would hold the contract for Corridor maintenance and upgrades, signaling and
switching during this transition.
At the end of the transition the Northeast Corridor Compact would take bids from private sector
companies and public sector transit agencies for both contracts - bringing competition to the system and
bringing Northeast Corridor passenger rail financing and investment in line with the new passenger rail
model proposed by the bill
NEXT ISSUE WILL BE ONLY ONE PAGE INFORMING ALL WHERE AND WHEN
THE MEETING WILL BE. ANY FURTHER ISSUES WILL BE DETERMINED ON
THE DUES AND SPONSORSHIPS RECEIVED AS WE WILL BE SHORT FUNDS TO
DO ANY FURTHER ISSUES.
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