The Passenger Rail Investment and Improvement Act
On June 11, 2008, the House passed the Passenger Rail Investment and Improvement Act, H.R. 6003. The bill reauthorizes Amtrak through fiscal year 2013. Amtrak’s authorization had expired in 2002; however, the GOP-controlled Congress failed to reauthorize Amtrak over the last five years. This reauthorization of Amtrak is long overdue. The bill also creates a new capital grants program for states to provide new or improved intercity passenger rail. Following is an overview of some of the bill’s key provisions.
Invests in improving Amtrak – increasing Amtrak capital grants. The bill calls for increasing Amtrak capital grants -- authorizing $4.2 billion (an average of $840 million per year) to Amtrak over the next five years for capital grants (Amtrak capital grants were funded at $565 million in FY 2008). Under 12 years of a Republican-controlled Congress, inadequate congressional support forced Amtrak to curtail or defer needed capital projects that created a serious deferred maintenance problem. These capital grants will help Amtrak bring the Northeast Corridor to a state-of-good-repair, procure new rolling stock, rehabilitate existing bridges, as well as make additional capital improvements and maintenance over its entire network.
Invests in improving Amtrak – increasing Amtrak operating grants. The bill also calls for increasing Amtrak operating grants -- authorizing $3.0 billion (an average of $606 million per year) to Amtrak over the next five years for operating grants (Amtrak operating grants were funded at $475 million in FY 2008). The operating grants will help Amtrak pay salaries, health costs, overtime pay, fuel costs, facilities, and train maintenance and operations.
In an effort to expand passenger rail, creates a new grant program for intercity passenger rail services. In an effort to encourage the development of new and improved intercity passenger rail services, the bill creates a new State Capital Grant program for intercity passenger rail capital projects. The bill authorizes $2.5 billion ($500 million per year) over the next five years for grants to states to pay for the capital costs of facilities and equipment necessary to provide new or improved intercity passenger rail. The federal share of the grants is up to 80 percent. The Transportation Department would award these grants on a competitive basis for projects based on economic performance, expected ridership, and other factors.
In an effort to expand passenger rail, also authorizes funding for 11 high-speed rail corridors. The National Surface Transportation Policy and Revenue Study Commission recommended that the United States establish a high-speed rail network that spans the entire country. The bill authorizes $1.75 billion ($350 million per year) over the next five years for grants to states and/or Amtrak to finance the construction and equipment for 11 authorized high-speed rail corridors. The federal share of the grants is up to 80 percent. The Transportation Department would award these grants on a competitive basis for projects based on economic performance, expected ridership, and other factors.
To improve Amtrak service, authorizes grants to reduce congestion at rail “choke points.” Many of Amtrak’s service routes outside the Northeast Corridor suffer from poor service reliability and on-time performance because of freight traffic congestion. This congestion prevents Amtrak from retaining and attracting new ridership, and increases Amtrak’s operating costs. The bill addresses this problem by providing congestion grants to Amtrak and the states for high-priority rail corridors to reduce congestion and facilitate ridership growth.
To improve Amtrak service, reduces Amtrak’s debt. Federal support of Amtrak was cut drastically in 2000 and 2001, forcing Amtrak to assume a large amount of debt to stay in operation. Amtrak has aggressively targeted this debt, paying down $600 million from 2002 through 2007. This bill helps Amtrak to take further steps to reduce its debt, authorizing $345 million each year for debt service over the next five years. This funding will allow Amtrak to focus its resources on improving existing services and making additional capital and operational improvements.
To improve commuter rail service, creates a mechanism for completing stalled negotiations between commuter and freight rail. Currently, no federal guidelines exist to mediate disputes between commuter rail providers and freight railroads over use of freight rail tracks or rights-of-way, nor is there a standard forum for negotiating commuter rail operating agreements. The bill establishes a forum at the Surface Transportation Board to help complete stalled commuter rail negotiations, helping our rail network operate as efficiently as possible.
Creates a RFP for high-speed rail service between Washington, D.C. and New York City, using private funds. The bill contains a provision directing the Secretary of Transportation to issue a Request for Proposals (RFP) for the financing, design, construction, and operation of an initial high-speed rail system operating between Washington, D.C. and New York City, using private funds. The Secretary is directed to form a Commission to study any qualifying proposals received. Finally, the Secretary would issue a report to Congress on the Commission’s findings. Any further action on a proposal would need legislative approval from Congress.