Infrastructure bill; preventing re-regulation top REMSA 2018 advocacy priorities

Written by Kyra Senese, Managing Editor
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REMSA

The Railway Engineering-Maintenance Suppliers Association (REMSA) announced on Jan. 18 the three main areas of focus for its advocacy priorities in the New Year.  

 

REMSA intends to focus on working with its members and associated railroad and rail supply associations to put forth a pro-rail agenda in Congress.

The association’s priorities aim to seek passage of an infrastructure package, block misguided regulations and support first-and-last-mile rail service.

“We were pleased to see Congress successfully pass a tax reform package, but we all know there is much more work to be done to ensure a healthy rail network” said REMSA President Bruce Wise. “We must commit to the sustainable funding of our nation’s infrastructure and prevent misguided regulations that jeopardize the health of the rail supply community.”

David Tennent, REMSA’s executive director, said the association looks forward to representing its membership in front of Congress and participating in Railroad Day on Capitol Hill.

“We are ready to stand with the entire rail industry to ensure our Congress effectively deals with these pressing issues,” Tennent said.

The association’s first outlined priority is entitled, “Infrastructure Package: Federal Direct Investment, Rail Financing Fixes, and Highway Trust Fund Solution.”

REMSA said since the Trump Administration took office in January 2017, it has vowed to create a legislative package to fix U.S. infrastructure.

“We strongly support this holistic approach to fixing our nation’s infrastructure and think it is long overdue that Congress take action on this issue,” the association said. “We believe an infrastructure package should feature direct, federal infrastructure investments, fixes to a rail financing program, and a long-term solution to the Highway Trust Fund.”

REMSA said permitting reforms are an important infrastructure package component, but added that it does not believe they would end the need to stop the “chronic underfunding of our nation’s transit systems and passenger railroads.”

REMSA also said direct federal spending would be the best tool to use to enhance U.S. passenger rail infrastructure.

The association said it believes the Railroad Rehabilitation and Improvement Financing (RRIF) program is a well-meaning program, but clarified its “slow application processing and costly administrative fees” would hinder the program from reaching its potential.

“Congress should consider reforms to the program that reduce the burden the credit risk premium places on railroads and speed up the application process,” REMSA wrote.

Since 2008, policymakers have transferred $143 billion in general funds to the Highway Trust Fund, the association stated.

“Our bridges and roads cannot continue to survive on short-term bailouts,” REMSA said.

The association also suggested that Congress should consider enacting a weight-distance tax to fix the Highway Trust Fund.

“A weight distance tax would fairly modernize our highway user-fee model, follow the principle of modal equity, and help to end the underfunding of our highway system,” REMSA said.

The second priority outlined by REMSA for 2018 is entitled, “Preventing Regulations That Discourage Railroad Investments.”

In the summer of 2016, the Surface Transportation Board (STB) released proposed regulations that REMSA said risk disturbing consistent investments in the country’s rail network.

Throughout the past 35 years, REMSA said U.S. freight railroads have spent more than $635 billion to grow and maintain the rail network.

“These investments promote an efficient, modern, and safe rail system, while supporting hard working railway suppliers throughout the United States,” the association said.

Though REMSA said it believes the STB is ill advised in its aims to re-regulate commodities and limit shipping rates, the association emphasized it is particularly concerned about the STB’s Notice of Proposed Rulemaking (NPRM) on forced access.

Under the STB’s Competitive Access NPRM, railroads would be required to allow competing railroads access to their rail lines.

“This introduces an unproven, radical approach, which forces railroads to surrender their privately-owned property for use by competing operators,” REMSA stated. “Alarmingly, this forced access proposal would disrupt network efficiencies, which would limit revenues and discourage sustained investments and maintenance of the rail system.”
REMSA said such investments are crucial to supporting high-wage rail and supplier manufacturing jobs throughout the country. The association said the proposed rule jeopardizes the capacity growth and the continued efficiency of the 140,000-mile U.S. rail network.

The third priority outlined by the association is referred to as, “Polices that Enable and Support First and Last Mile Rail Service.”

REMSA says reliable first-and-last-mile rail services are crucial in supporting economic development initiatives and rural communities across the U.S.

“Shortline and regional railroads face unique financial and logistical challenges in meeting the demand for first-and-last-mile service,” the association said. “Given the numerous public benefits spurring from rail access, the federal government has enacted policies that support the expansion and maintenance of short line rail networks. We strongly advocate for this federal approach to continue.”

The association notes that the Short Line Tax Credit (45G) has supported safety improvements and a state-of-good repair across the shortline rail network, in addition to spurring manufacturing activity throughout the U.S.

“Unfortunately, the credit lapsed in 2016 without an intervention from Congress, despite its vast popularity in both chambers of Congress,” REMSA said. “We urge Congress to speedily re-enact this common-sense policy.”

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