· Good morning. Thank you again for being here, and for your ongoing commitment to improving railroad safety.

· I thought that as we approach the end of the President’s first term; I would reflect briefly on some of the things we have accomplished together. And then I’d like to ask you to think about where we go from here.

Consider first, and most importantly, the safety results that we have achieved. Let’s compare the first six months of 2001 with the first six months of this year:

· The total accident/incident rate is down almost 22%

· Total fatalities are down 7%

· Total non-fatal injuries are down 27%, and the

· Employee-on-duty injury rate is down 25% .

· Individual indicators for any six-month period will be up and down, and currently we have a real concern that highway-rail crossing fatalities are up sharply from last year--though still down from 2001.

Nevertheless, for most categories of events, the clear trend lines are favorable.

This Committee has been at the heart of much of the progress we have made. With your help --

· We issued final rules to authorize use of the Gage Restraint Measurement System in lieu of visual evaluation of tie conditions--completing the revised Track Safety Standards;

· We issued the first safety requirements for Roadway Maintenance Machines; and

· the first national requirements for Locomotive Cab Sanitation;

· We revised the Accident/Incident Reporting regulations to conform to new OSHA criteria and make other improvements, including capturing data on remote control locomotive operations.

· Based on your consensus proposed rule, FRA is concluding the process of clearance of a final rule on Performance Standards for Processor-Based Signal and Train Control Systems;

· You helped us prepare recently-published proposed rules on— Cab Noise Exposure; and

More crashworthy Event Recorders.

· You have completed work on a propose rule for improved Locomotive Crashworthiness, which we expect to publish following completion of clearance in the very near future.

And during this period FRA has also issued final rules on—

· Freight Power Brakes, including the authorization of extended haul trains;

· U.S. Locational Requirements for Dispatching, and Alcohol/Drug Requirements for Foreign-Based Crews; and

· Safety Integration Plans in connection with significant railroad combinations.

FRA has also issued an Interim Final Rule on Use of Locomotive Horns at Highway-Rail Crossings, and we are now preparing final rule amendments.

And FRA has issued a proposed rule on Reflectorization of Freight Rolling Stock that benefited immensely from early consultations regarding the issues involved, and we are now completing a final rule in that proceeding.

As we look to the future, we are heartened by the creativity and flexibility you are showing in developing the issues in the RSAC’s Passenger Safety Working Group, and in our meeting today you will have the chance to discuss, in a preliminary way, possible future work.

Looking Forward

So, as we conclude this year, we will have completed the bulk of our pending regulatory agenda.

We need to think creatively regarding what RSAC’s role will be in the future. We need to make sure that agenda items are critical safety issues. It’s not how much we try to do, but how well we actually do it that matters. We are not interested in just adding new regulatory requirements, but in ensuring that we are addressing matters of true importance.

We need to review our regulations to see if they are still relevant and are as flexible as they should be to facilitate future innovations. I have heard for years now that some of our laws, policies and regulations are outdated or overtaken by new technologies; but despite my requests, few have come forward with specific examples. We don’t want regulatory constraints to be unnecessary impediments to taking advantage of new technology. And we do not want outdated laws or old and ignored policies hanging on the books.

So I challenge this Committee to help clean up the books. I think this would be a major contribution to equity and efficiency in our industry.

Finally, I hope that as we move into another year, the members of this Committee will look for new ways we can make positive contributions to becoming a progressive industry in actions and in relationships. No more talking issues to death. At the beginning of this Administration, Allan talked about how we wanted everyone to give it their best, and then DO something. But if deliberations are not in good faith, FRA is perfectly capable of moving forward on its own. And we will. I think the progress we have made together shows that with everyone providing valuable input and working in accord, we all feel a lot better about our accomplishments, and can take pride in a safety program that is more comprehensive, more flexible, and more capable. We can also venture confidence that this industry—having demonstrated improved safety performance—is poised for even better days ahead.

Thank you for your commitment to safety and to the critical role our railroads must play in the future of this great Nation.