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DOT 62-05
Contact: Robyn Boerstling, Tel.: (202) 366-9789
or (202) 441-3280
Thursday, April 14, 2005
The Bush Administration Introduces the Passenger Rail Investment Reform Act in Congress, Transportation Secretary Mineta Invites Serious Dialogue on Amtrak Reform
Legislation that breathes new life into the nation’s inter-city
passenger rail service and improves Amtrak’s operations nation-wide was
transmitted to Congress the Bush Administration announced today. Delivering the
Passenger Rail Investment Reform Act to Congress sets the stage for a serious
debate about the future of passenger rail and needed reforms to save the system
from failing.
“This legislation is a lifeline to a dying railroad company. Congress has
postponed saving Amtrak long enough. It’s time to act,” Secretary Mineta said.
The Passenger Rail Investment Reform Act makes key reforms to transition Amtrak
into a purely operating company, create a federal-state partnership to support
passenger rail, introduce market-based competition to the system and set up an
inter-state compact to maintain the heavily used Northeast Corridor service.
Under the legislation, Amtrak will no longer carry the burden of maintaining
tracks, stations and other infrastructure. Amtrak will have the ability to be an
operating company, focused solely on running trains safely and on time.
Regional, state or local authorities will be empowered to make decisions about
service, planning where it is and what best meets local transportation needs; as
well as ensure rail operators are providing a reliable, efficient and cost
effective service.
The reform proposal includes a new federal-state partnership to fund capital
improvements, much like the successful programs relied on in other modes of
transportation, such as mass transit. The federal government will offer 50-50
matching grants to states for development of infrastructure projects that
improve passenger rail service. The matching grants will provide an incentive
for states to make capital investments that support high quality, integrated
regional rail services. The grant funding will come from the General Fund
through an application process.
The legislation makes the cost of ‘first dollar’ liability insurance eligible
for capital investment grants, meaning the federal government will continue
indirect support for this coverage. The states will also have the option to
shift liability insurance costs to their chosen carriers, should this
arrangement work better for their needs.
As well, the reform introduces true competition for inter-city passenger rail
service provided by rail operators. States will be able to select from Amtrak or
a private or public rail operator. This allows rail service to respond to
competitive demand and results in better service at a reasonable price, while
also allowing states to decide what is best for their region. No matter which
carrier a state chooses, the legislation guarantees that the winning passenger
rail operator will have access to the train tracks in their region owned by
freight or any other railroad entity.
To ensure the stability of service in the Northeast Corridor (NEC), which
accounts for nearly half of all passenger rail ridership, the legislation
authorizes targeted capital funding for the backlog of projects needed to bring
the NEC back to a state of good repair. This funding will be used to restore
rail facilities and equipment, completing the necessary improvements that Amtrak
has been unable to fund.
“This legislation carries forward our vision where a vibrant and viable
passenger rail network continues to connect our nation. We can achieve this
vision by dramatically increasing Amtrak’s accountability while allowing the
proven principles of competition and local control to improve the operation of
the system,” Secretary Mineta said.
Passenger Rail Investment Reform Act--04/13/2005
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