Streetsblog Capitol Hill

Amtrak has spent the past year as a sort of punching bag for some members of Congress, not to mention the GOP presidential candidates. So it’s refreshing to hear that they’re coming out swinging, confidently, in 2012.

President and CEO Joseph Boardman announced this morning that Amtrak would pursue an “aggressive” agenda for 2012, including a large-scale equipment upgrade and some much-needed capital improvements to the busy Northeast Corridor [PDF]. Boardman said that fiscal uncertainty would not spell delayed capital investments — as it has in the past — because “customers expect us to get better.” He cited the company’s record ridership – 30.2 million passengers in 2011, the eighth time in the last nine years that Amtrak has set a new ridership record.

Artist's rendering of Siemens' "Amtrak City Sprinter" electric locomotive, the first of which will be built in 2012. Image: Metro Magazine

“I think the culture and organization of this company is changing to where we’re able to make investments,” Boardman said, offering as an example the purchase of 70 new electric locomotives. The purchase illustrates a surprising confidence in the future as the trains were “financed by debt because we were able to show folks we can pay that debt with increases in improved reliability and service.”

The locomotives will replace the entire fleet of electric locomotives currently in use on the Northeast Regional and Keystone Corridor routes, and will be capable of slightly higher speeds with greater reliability.

Long-distance trains will also be getting equipment upgrades in the form of 130 new sleeper, diner, and baggage cars. These will be used on long-distance routes which connect the Northeast Corridor to Montreal, Chicago, and Miami. Boardman pointed out that some of the cars they are replacing, inherited from predecessor railroads, are older than he is.

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Mitt Romney won Iowa by 8 votes a day after making a weak argument against federal funding of Amtrak. Photo: Getty Images

In a landslide (er, eight-vote) victory over former Pennsylvania Senator Rick Santorum in the Iowa caucus last night, Mitt Romney solidified his lead over the rag-tag field of GOP nominees. He also took an opportunity, the day before the caucus, to make a tired old argument against public support of passenger rail service.

I gotta cap federal spending, and then I’ve got to balance the budget. Now how do you go about doing that?

[Brief heckling interlude]

My view is this: What you do to get our budget in line is you say this. You take all the programs the federal government has, and you say, “Which of these programs is so critical that we gotta have it?” And those things we keep.

But those programs that don’t pass the following test we gotta get rid of, and this is my test: Is this program so critical it’s worth borrowing money from China to pay for it? And on that basis we’ll get rid of some programs, even some we like.

[Takes an easy shot at "Obamacare".]

And there’s some other things — look, Amtrak ought to stand on its own feet or its own wheels or whatever you’d say. And I like the National Endowment for the Arts and the National Endowment for the Humanities but I’m not willing to borrow money from China to pay for it.

(Hat tip to Transportation Nation for breaking the story and providing the audio.)

In this brief moment, Romney staked out several positions that distinguish him from the rest of the pack. First, he acknowledged the existence of federal programs worth keeping — not something many Republicans want to do in these slash-and-burn days. And second, he actually mentioned transportation, which most of the field has completely ignored.

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With no movement on a highway bill from House T&I Chairman John Mica until after Congress reconvenes in January, Ranking Member Nick Rahall held a press conference today to introduce the “Invest in American Jobs Act of 2011” [PDF]. The act would strengthen the “Buy America” requirements already in place on transit, rail, highway, bridge, and aviation programs.

This streetcar was made in Oregon, but will transit suffer under a Democratic mandate to buy all components stateside? Photo: Seattle Transit Blog

Among the bill’s stipulations:

• 100 percent of components and subcomponents of transit rolling stock must be made in the US by fiscal year 2016 (currently a 60 percent requirement, to be raised incrementally)
• Amtrak would lose its exemption from Buy America on projects under $1 million
• Any exemptions to Buy America sought will be subject to a period of public comment and must be reported to the Secretary of Transportation

It also seeks to eliminate loopholes for segmented or subcontracted projects like the east span of the San Francisco-Oakland Bay Bridge. Rahall specifically cited the bridge, the largest public works project in California’s history, as having been built using 43,000 tons of Chinese steel—“Made in China, but paid for by American taxpayers.”

The bill is the latest in a growing list of job-creation proposals and counter-proposals to come from either the President or Congress. And like those prior proposals, this one is unlikely to go very far.

Think of it as the Democrats’ answer to “drilling-for-infrastructure” (maybe “regulation-for-protectionism”?). While representatives from the AFL-CIO, United Steel Workers, and United Streetcar threw their support behind the bill at the announcement, a Republican House pushing to de-regulate everything will be unlikely to get behind a Democratic proposal to create additional regulatory burdens – and costs – for industry.

Indeed, it’s easy to read the bill as a mere political maneuver. Rather than letting the Republicans claim credit for introducing a transportation bill they’re overtly touting as a jobs-creator — and then letting them blame Democrats for refusing to pass it — the Democrats are trying to get out in front with their own unpassable jobs-and-transportation bill.

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Speaking at a press conference today, Mica backed off plans to privatize Amtrak service in the Northeast. He was joined by New York State Sen. Malcolm Smith and Reps. Carolyn Maloney and Jerry Nadler. Photo: Noah Kazis.

House Transportation Committee Chairman John Mica backed off his controversial plan to privatize passenger rail on the Northeast Corridor today, announcing at a press conference that reforming Amtrak would suffice.

Mica stood with New York Representatives Carolyn Maloney and Jerry Nadler at a conference held by the US High Speed Rail Association to announce further support for true high-speed rail along the Northeast Corridor. Mica has previously singled out the Boston-to-Washington corridor as the only proper location for high-speed rail (in contrast to the Obama Administration’s nationwide approach). Today, he urged that if any more high-speed rail funds are returned to the federal government, they be disbursed to the northeast. “Any further money for high-speed rail needs to go solely to the Northeast Corridor,” he said.

Mica said his goal was to see travel times as fast as in Amtrak’s ambitious proposal, but within a decade, instead of the 30-year timeline Amtrak set out.

Given Mica’s previous support for privatizing the Northeast Corridor, today’s announcement raises questions about how a revitalized push for high-speed rail along the route would be structured. Amtrak will be involved, Mica promised. “If there wasn’t an Amtrak, we’d have to create an Amtrak,” Mica said twice today. “It just needs reform.” He stated that he is no longer asking for the route to be taken away from Amtrak and that he is willing to compromise with other members of Congress and Amtrak leadership.

Even so, Mica still referred to Amtrak as a “Soviet-style train system.” It’s clear that ideological divisions linger.

Nadler, an opponent of privatization, added that there is now widespread agreement that private capital needs to be included in plans for the Northeast — Amtrak itself is seeking private investment — and also agreement that Amtrak will continue to serve the corridor. “If we all agree that Amtrak has to be the main vehicle,” said Nadler, “we have a lot of room to talk and to compromise.” Read more…

The full Senate passed a major appropriations bill yesterday, including funding levels for transportation and housing. The Senate put the kibosh on Sen. Rand Paul’s attempt to strip bike/ped funding from the federal transportation program, as we reported yesterday. Here’s the lowdown on the bill as a whole.

In the current political environment, the Senate probably couldn't do much more than maintain current spending levels. But it's not enough to transform our transportation system. Photo: MTSNAC

The upper chamber maintained funding for several key livability programs, teeing up a fight with the GOP-led House over spending levels. A finished 2012 budget is already a month overdue and despite the Senate passage of a “minibus” (as opposed to an “omnibus”) spending bill yesterday, no one seems to expect a completed bill anytime soon.

The Senate bill maintains current overall spending levels, which, in the current environment, is a win for advocates of transportation investment, though given that the numbers don’t account for inflation, they essentially amount to a spending cut.

Either way, these figures don’t shift the status quo very much. While funding for TIGER and transit projects gets a modest boost, high-speed rail has been sharply reduced in this bill. And, since this appropriation comes in the absence of a new reauthorization of the federal transportation program, which could set new policies, these funds come without any guarantee that the money will be spent more wisely, in the pursuit of strategic goals and keeping systems in a state of good repair.

The bill includes:

• $550 million for the TIGER program, a key element of the shift away from formula funding and toward merit-based allocations for the most innovative projects. The bill sets aside almost a quarter of that funding for projects in rural communities. This funding level would represent a $23 million jump over the actual enacted number for this year.
• $41 billion – the same as this year – for the Federal-aid Highway program. Sen. Barbara Boxer was disappointed that the Senate did the math differently this year – rather than allocating $44 billion and then rescinding $3 billion of it, this bill makes the cut upfront. While that appears to be a more straightforward way to do it, some fear that it makes the baseline funding level look lower. That means that future funding will be determined based on $41 billion, not $44 billion.

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“Last year we spent more than $40 billion on highways, and Lord knows we need that — but that’s more than we spent on Amtrak in its entire 40-year history,” New Jersey Senator Frank Lautenberg said this morning at the start of a hearing on the future of passenger rail. “And unfortunately, some say we can’t afford vital public investments like these right now. And I say we can’t afford not to make these investments.”

Amtrak CEO Joseph Boardman told senators that House plans would be devastating for passenger rail in the U.S.

“It’s not enough just to say we’re going to cut service,” Lautenberg went on. “It’s like cutting throats.”

The longtime rail champion took the opportunity to slam the House Republican plan to privatize the Northeast Corridor, and Amtrak CEO Joseph Boardman agreed that it would be disastrous. Boardman said privatization ran a huge risk of compromising safety and the environment.

More significantly, the Republican proposal is based on the assertion that Amtrak doesn’t do a good enough job of managing its own assets, and that a private company would be better suited to do so. But an audit of Amtrak shows great progress, testified Amtrak’s inspector general, Ted Alves.

“Ridership and revenue have grown steadily, and this year the company expect to exceed 30 million passengers for the first time,” Alves said. “Amtrak is also focused on improving management practices and financial performance and is finalizing a new strategic plan.”

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The Pacific Surfliner train service, with its 240,000 annual passengers, could get zero federal support if the House gets its way. Photo: Wired

The 2012 transportation budget passed by a subcommittee of the House Appropriations Committee yesterday cut all high-speed rail funding and slashes Amtrak’s operating grant by 60 percent. What’s more, it forbids Amtrak from using that money to fund short corridors.

Ridership on those short corridors grew five percent in the last year [PDF]. Twenty-seven train lines, including several in and out of Chicago, would suddenly see their federal funding disappear, if the House budget were to becomes law. That would only leave the Northeast Corridor and a handful of cross-country routes; half Amtrak’s ridership would be cut instantly.

According to the National Association of Railroad Passengers, a rail advocacy group, the danger goes further than just the short corridors. The organization asserts that “the bill really would kill all of Amtrak because loss of the short corridors would cut revenues and balloon costs for Northeast Corridor and national network (overnight) trains… Overhead costs—such as for station facilities and maintenance back shops—which now are shared among routes would be dumped on the surviving trains. For example, the Texas Eagle would become the sole user of the St. Louis and Fort Worth terminals and six Illinois stations. And Amtrak’s Chicago terminal costs would be borne solely by eight overnight trains.”

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In about an hour, Congressional appropriators will vote on how much money to allocate for transportation in the next fiscal year. It won’t be pretty.

This smiling man (THUD Chair Tom Latham) is getting ready to take the axe to prized livability programs. Photo: Iowa Independent

The House Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD) is planning deep cuts to many programs, some reminiscent of House Budget Committee Chair Paul Ryan’s notorious budget proposal, which wanted to slash transportation spending by about a third.

The subcommittee is led by Iowa Republican Tom Latham, whom we profiled when he took the gavel. At the time, we were worried he would end up cutting important livability programs, and here he is, doing exactly that.

At least transit and highway spending share the pain, both getting cut the same 34 percent. Highway funding goes from about $41 billion to $27 billion; transit funding (excluding New Starts) goes from $8.3 billion to $5.3 billion.

Bizarrely, the bill regresses to a pre-cooperation era and returns to the age of agency silos. One great accomplishment of the Obama administration has been the Sustainable Communities Partnership which joined USDOT, HUD and the EPA to work together on common development programs, planning inexorably linked programs of housing and transportation in conjunction with each other, and in consultation with the environmental regulator. But the appropriations bill prohibits HUD from using any funding for anything related to the Partnership.

In his excellent analysis of the dismal news, Transportation for America’s Stephen Lee Davis also delivers this blow: the innovative TIGER grants, TIGGER grants and high-speed rail programs are cut entirely. And more, Davis writes:
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Members of the U.S. High-Speed Rail Association on Capitol Hill with Rep. John Mica (center) on Tuesday. Photo courtesy of USHSR.

At a meeting with members of the U.S. High-Speed Rail Association Tuesday, House Transportation Committee Chair John Mica softened his stance somewhat on his plan to privatize the Northeast Corridor.

He acknowledged that the proposal is “controversial” and said that was why he framed it in a separate bill, apart from the rest of the reauthorization. He said he’s “heard the concerns” about the plan. A member of his staff said that the original plan was being portrayed as transferring Amtrak’s assets away from it, while leaving Amtrak holding the bag on the debt. “Which, when you put it that way, does sound sort of unfair,” the staffer said, indicating that issues like those are being worked out.

Andy Kunz, president and CEO of the U.S. High-Speed Rail Association, said he was glad to see Mica striking a more cooperative tone. “His initial bill and his initial hearing was a little bit ‘This is it; take it or leave it’,” Kunz said. “Now he’s recognizing there needs to be a bit more cooperative action.”

The committee isn’t easing up on everything, though. The staffer also stated that the committee was giving inter-city and passenger rail “a temporary rest” while it focuses exclusively on high-speed rail. “It does not serve the two programs well to be ‘smooshed,’ or put together and consolidated the way they have been and then have most of the projects that receive funding not be high-speed rail in any way, shape, or form.”

In response to the Congressional Research Service’s conclusion that the rail privatization scheme could run into constitutional problems, Mica’s staffer was dismissive, saying CRS merely warned that some courts could find it to be a violation, and they should be careful. (Sounds like a finding of unconstitutionality to me.)

As he often does, Mica spoke of his high-speed rail plans as a way to rescue high-speed rail from the Obama administration’s mismanagement and bungling. He often jokes about the “gift that keeps on giving”: the original $8 billion allocated for high-speed rail, some of which has been returned by gun-shy states and re-allocated.

Mica asserted that the involvement of the private sector is “non-negotiable” – which Amtrak itself would agree with, as it’s already seeking private sector partners. Mica gave Amtrak CEO Joseph Boardman credit for being on board. “Boardman sees that you cannot [upgrade the NEC to high speeds] – at least in his lifetime – under the current proposal,” Mica said. He also said Transportation Secretary Ray LaHood is “willing to negotiate.” But he cast blame on Vice President Joe Biden and Sen. Frank Lautenberg (D-NJ), who he said are willing to give “none of the pie” to private investors.

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We’re pleased to welcome Stephen Smith as a new contributor to Streetsblog Capitol Hill. We’ll be running Stephen’s work on a regular basis, and you can catch more of his writing at his home blog, Market Urbanism.

Amtrak’s annual ridership may inch over 30 million for the first time this year, but the assault on its funding by House Republicans hasn’t abated. Rep. John Mica (R-FL), chair of the House Transportation Committee, recently proposed slashing Amtrak’s federal subsidies by 25 percent over the next two years. While it’s tough to say how much deficit hawks will actually succeed in cutting, it’s looking increasingly unlikely that Amtrak – and indeed public transportation in general – will get the cash that advocates would like. Given the political climate, Amtrak faces, realistically, two choices: do more with less, or cut service and raise fares.

Amtrak is paying a big premium for these locomotives compared to similar purchases made by European rail companies.

Unfortunately, Transportation Secretary Ray LaHood’s recent announcement of a $562.9 million loan to Amtrak to buy new locomotives for the Northeast Corridor suggests that they will not be doing more with less. The money will go to buy 70 electric locomotives, which, as Alon Levy at Pedestrian Observations explains, are far more expensive than comparable European and Japanese models, and will lock us into outdated technology for decades to come.

Europe and Asia have realized the benefits of lighter and more nimble trains – cost, speed, and energy consumption among them – but Amtrak’s planned purchase is further proof that the U.S. is not quite there yet. One easy cost-saving move would be to wait two years for Positive Train Control, an anti-crash safety technology, to be fully installed along the Northeast Corridor. By 2015, Amtrak will no longer have to comply with the Federal Railroad Administration’s requirement that trains be able to withstand crashes with enormous freight trains. Free to buy lighter off-the-shelf foreign designs, Amtrak could then save 35-50 percent off the cost of the locomotives, as Alon notes.

An even more radical modernizing and cost-cutting measure (at least in the long run) would be to transition the Northeast Corridor Regional fleet from locomotive-hauled trains to electrical multiple units, or EMUs, in line with best practices in Europe and Asia. EMUs are, like subways in the US, individually-powered carriages, and standard models can be as cheap as the inflated price that Amtrak pays for its unpowered passenger railcars. The locomotive purchase locks Amtrak into buying more of these unpowered carriages in the future, making Amtrak’s decision to go with locomotives all the more important.

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