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Congressman Pete Visclosky
Proudly Representing Indiana’s 1st Congressional District
2256 Rayburn Building 7895 Broadway, Suite A
Washington, D.C. Merrillville, IN  46410
TELE:  202-225-2461 TELE:  219-795-1844
http://www.house.gov/visclosky
  FOR IMMEDIATE RELEASE  
September 9, 2008
 
Visclosky Testifies on TRACS Act, Criticizes STB’s Handling of CN/EJ&E Transaction
 
Bill Would Make STB Consider Impact of Transactions on Affected Communities
 
 
Washington, D.C.  –  Congressman Pete Visclosky today testified before the House Transportation and Infrastructure Committee in support of H.R. 6707, the Taking Responsible Action for Community Safety (TRACS) Act.  Visclosky is an original cosponsor of the bill, which would require the Surface Transportation Board (STB) to give greater consideration to the impact of railroad transactions on communities.

“While the STB has made some decisions in this transaction that would be considered favorable to the public’s interest, including their decision last evening to deny CN’s petition to short-change the environmental review process, the recently released Draft Environmental Impact Statement (DEIS) gave me a new appreciation of the term ‘getting railroaded,’” testified Visclosky.

The TRACS Act would apply to all transactions not approved by the STB prior to August 1, 2008, including the CN/EJ&E transaction, and would require the Board to place greater consideration on the impact of railroad transactions on affected communities.  In doing so, the STB would have to give equal consideration to the public impact and the transportation benefits for the railroads.  Presently, the STB considers transportation benefits first and public impact second.

Specifically, the TRACS Act would require the STB to consider a transaction’s effect on local communities as far as public safety, grade crossing safety, hazardous materials transportation, emergency response systems, commuter rail, and Amtrak are concerned.  The bill also would require the STB to reject a proposed acquisition if it finds that the transaction’s adverse impacts on affected communities outweigh the transportation benefits in the transaction.  Additionally, it would allow the STB to impose conditions to mitigate the effects of the transaction on local communities.

“Under the current regulations of the Surface Transportation Board (STB), the railroads have a very obvious advantage,” testified Visclosky.  “The moves by these companies to improve their bottom line trump the hard work of policymakers at all levels of government when it comes to defining and addressing the nation’s transportation investment needs.  The TRACS Act would level the playing field at the STB between the public interests and the business interests of the railroads.  A reasoned balance can and should be struck.”

The CN/EJ&E transaction would result in a three-fold increase in rail traffic on the existing EJ&E line in Northwest Indiana, cause the average train length to increase from 2,590 feet to 6,321 feet, and bring nearly ten times as many rail cars carrying hazardous materials to Northwest Indiana.  With as many as 34 trains per day running on the track, it would bisect communities, impede the flow of automobile traffic, and create a considerable public safety concern.  The proposed acquisition also would create new obstacles to economic development initiatives such as the expansion of the South Shore Line and the expansion of the Gary/Chicago International Airport.

“I would like to thank Northwestern Indiana Regional Planning Commission (NIRPC) Executive Director John Swanson and LaPorte County Councilman Mark Yagelski, Chairman of the Northern Indiana Commuter Transportation District (NICTD) Board of Trustees for participating in today’s hearing, and my good friend Councilman Stan Dobosz of Griffith, Indiana for attending in person,” said Visclosky.  “I look forward to continuing to work with my like-minded colleagues in Congress to enact the TRACS Act into law and give the STB the ability to make the right decision for the citizens of our nation.”

The following is Congressman Visclosky’s complete testimony, as prepared for delivery:

Testimony of Congressman Peter J. Visclosky
Before the House Committee on Transportation and Infrastructure;
Hearing on H.R. 6707, the Taking Responsible Action for Community Safety Act

September 9, 2008

I would like to thank the Committee on Transportation and Infrastructure for holding today’s hearing.  In particular I would like to thank Chairman James Oberstar and Ranking Member John Mica for their leadership in addressing our nation’s aging infrastructure system.  Further, I would like to thank all the panelists for their participation in today’s hearing, in particular two residents of Indiana, Northwestern Indiana Regional Planning Commission (NIRPC) Executive Director John Swanson and LaPorte County Councilman Mark Yagelski, Chairman of the Northern Indiana Commuter Transportation District (NICTD) Board of Trustees.  Also, it would be remiss of me if I did not acknowledge the presence in the audience of my good friend Councilman Stan Dobosz of Griffith, Indiana.  

I come before you today as a proud original cosponsor of H.R. 6707, the Taking Responsible Action for Community Safety (TRACS) Act, and I am extremely appreciative of Chairman Oberstar for his sponsorship of this measure.  This is legislation that is long overdue.  Under the current regulations of the Surface Transportation Board (STB), the railroads have a very obvious advantage.  The moves by these companies to improve their bottom line trump the hard work of policymakers at all levels of government when it comes to defining and addressing the nation’s transportation investment needs.  The TRACS Act would level the playing field at the STB between the public interests and the business interests of the railroads.  A reasoned balance can and should be struck.

Specifically, the TRACS Act would require the STB, in a proceeding that involves the merger or control of at least one Class I rail carrier, to consider a transaction’s effect on local communities pertaining to public safety, grade crossing safety, hazardous materials transportation, emergency response systems, commuter rail, and Amtrak.  The bill also would require the STB to reject a proposed acquisition if it finds that the transaction’s adverse impacts on affected communities outweigh the transportation benefits in the transaction.   

To illustrate the need for the TRACS Act, I would like to highlight the situation created in Northwest Indiana by the Canadian National Railway’s (CN) proposed acquisition of the Elgin, Joliet and Eastern (EJ&E).

     Having been born and raised in Lake County, Indiana, I, like all the residents of the County, am very experienced with freight rail traffic and the danger it poses to local residents.  In 1977, my mother, Helen, was struck by a train and thankfully survived the experience.   Waiting at crossing gates and finding alternative routes are a fact of life when you live in this heavily industrialized area that serves as the eastern gateway for freight into Chicago.  Lately though, it has become apparent to the residents of the region that the waits are becoming longer, that the detours are becoming more congested, and that safety seems to be deteriorating.  Federal Railroad Administration statistics show three people died and four were injured via crossing collisions in Lake County alone from January to May this year.  Since, July 7 of this year, there have been three more serious car-train accidents in my Congressional District, resulting in four fatalities.  And while these accidents have not all been on the EJ&E line, I believe the CN acquisition of this line would exacerbate an already strained and dangerous transportation system in Northwest Indiana.

In Northwest Indiana, the CN/EJ&E transaction would result in a three-fold increase in rail traffic on the existing EJ&E line and cause the average train length to go from 2,590 feet to 6,321 feet.  With as many as 34 trains per day running on the track, it would bisect communities, impede the flow of automobile traffic, and create a considerable public safety concern.  The proposed acquisition also would create new barriers and fail to remove other obstacles to local economic development initiatives, such as the expansion of the South Shore Line and the expansion of the Gary/Chicago International Airport.

With regards to the expansions of the South Shore Line and the Gary/Chicago International Airport, both of these projects have the opportunity to be transformational projects for the economy of Northwest Indiana.  However, the progress of both projects have been hampered by protracted negotiations with freight railroads.  And while this summer, after seven years of negotiations, the airport finally announced that they had reached a preliminary deal with the railroads, I do not have to caution anyone that preliminary agreements with railroads often are not worth the paper they are written upon.

Since this transaction was first proposed in the fall of 2007, I, Senator Lugar, Senator Bayh, Governor Daniels, many of our Congressional colleagues from Illinois, and thousands of residents along the EJ&E arc have repeatedly expressed our concerns with this acquisition and have requested that the STB conduct a review of it in a deliberate and prudent manner.  And while the STB has made some decisions in this transaction that would be considered favorable to the public’s interest, including their decision last evening to deny CN’s petition to short-change the environmental review process, the recently released Draft Environmental Impact Statement (DEIS) gave me a new appreciation of the term “getting railroaded.”  I would like to read from page 17 of the Mitigation section of the DEIS.  

“…railroads historically have not paid more than a small share (5 to 10 percent) of grade separations because grade separations primarily benefit the community and not the railroad.”
     
I for one am disturbed by the contemptuous disregard for the public good in this statement and it serves to highlight the grossly inadequate process the law allows the STB to use in evaluating this transaction.  This process inexplicably holds the taxpayer financially responsible for the vast majority of mitigation expenses, which in this transaction could be in the hundreds of millions of dollars.  

I look forward to continuing to work with my like-minded colleagues in Congress to enact the TRACS Act into law and give the STB the ability to make the right decision for the citizens of our nation.  Thank you again for the opportunity to appear before you today on this very important matter.
 
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