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U.S. House Committee on Transportation and Infrastructure’s Railroad Subcommittee agreed May 8 to markup with amendments Railroad Infrastructure Development and Expansion Act for the 21st Century (RIDE 21) (H.R. 2950), and Amtrak Reauthorization Act of 2002 (H.R. 4545).



U.S. Representative Don Young (R-Alaska), who chairs the transportation and infrastructure committee, introduced RIDE-21 Sept. 25, and Amtrak Reauthorization April 23.



"Chairman Young would have liked to have put in more significant reforms on Amtrak recommended by Amtrak Reform Council and addressed the financial problems Amtrak has but hopes funding Amtrak at the level they requested and having new federal oversight over how Amtrak spends its money will suffice until a new Amtrak reform proposal can be developed and enacted next year," says Steve Hansen, a spokesman from Young’s office.



Young had planned to more-fully address Amtrak reform this year but the railroad’s needs were necessarily delayed by the Sept. 11 attacks, and a more-urgent need to develop new security measures for aviation and ports, says Hansen.



With the amendments, RIDE 21 would enable states or interstate compacts to issue up to $12 billion in federally tax-exempt bonds and $12 billion in federal tax-credit bonds for infrastructure improvements for high-speed passenger rail service. The amended bill also would give the secretary of transportation authority to approve overall corridor design, approve projects to complete a major portion of the infrastructure, and designate $1.2 billion per year for 10 years in tax-exempt bonds, as well as the same amount during the same period in tax-credit bonds. The secretary also would be able to give preference to projects that use a mix of the two types of bonds, link passenger rail service with other modes, or that would have a significant impact on air traffic congestion or improve commuter rail operations.



The amended bill also would extend the high-speed rail corridor-development program through fiscal-year 2009; $100 million per year in federal grants would be subject to appropriation. Of that, $30 million annually (up from $25 million annually under the existing Swift Rail Development Act) would be designated for technology development; and $70 million annually (up from $10 million annually), for corridor development, which would include acquisition of locomotives, rolling stock, track and signal equipment.



Railroad Rehabilitation & Infrastructure Financing (RRIF) loan and loan-guarantee program’s outstanding loan principal would increase from $3.5 billion to $35 billion. The RRIF program would be further modified: interstate compacts and states, magnetic levitation systems , and steel-wheel systems would be eligible; the primary benefit available for Class II and Class III railroads would increase from $1 billion to $7 billion; and obstacles, such as structure of loan cohorts, collateral requirements, artificial limits on loan amounts and prior-rejection requirement would be eliminated.



Meanwhile, H.R. 4545 would authorize $1.2 billion for Amtrak in fiscal-year 2003 — which is the amount Amtrak requested — plus an additional $775 million for life-safety and security programs. The bill also would require Amtrak to submit a comprehensive business plan to the Department of Transportation Inspector General, House Transportation and Infrastructure Committee, and Senate Commerce Science and Transportation Committee no later than Sept. 1. The plan would be required to include ridership targets, and capital and operating expenditures broken out by business unit — a specificity Amtrak Reform Council repeatedly requested to no avail.



DOT inspector general would review the plan and submit a report to each of the above committees, as well as conduct inspections to ensure the capital plan’s progress. General Accounting Office would audit Amtrak’s accounting practices, and also report to the secretary of transportation and above committees.



Appropriated funds would be available until expended; Amtrak wouldn’t be allowed to use the funds to subsidize commuter or freight rail operating costs.



The next stop for the bills will be markup by the full House, which likely will occur May 22. After that, it’s uncertain whether the House Ways and Means Committee also will choose to markup the bills or waive that option.



— Kathi Kube