Senate Commerce Committee passes STB reauthorization act; PRRIA passes House T&I Committee

Written by Mischa Wanek-Libman, editor
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Two pieces of rail-related legislation have progressed on opposite sides of the hill.

The U.S. House of Representatives Transportation and Infrastructure (T&I) Committee approved the Passenger Rail Reform and Investment Act of 2014 (PRRIA, H.R. 5449). And the Senate Committee on Commerce, Science and Transportation passed the Surface Transportation Board Reauthorization Act of 2014 (S. 2777).

PRRIA reduces Amtrak’s funding by 40 percent, requires that Amtrak eliminate losses from food and beverage service and mandates Amtrak carry out a business case analysis for all major procurements. Additionally, the legislation allows for profits made on the Northeast Corridor to be reinvested in the line.

The committee, which passed the bill by voice vote, says the legislation improves infrastructure, reduces costs, leverages private sector resources, creates greater accountability and transparency and accelerates project delivery for Amtrak and the nation’s passenger rail transportation system.

“This is a good reform bill that continues to move passenger rail and Amtrak toward more transparency, greater accountability, increased cost-effectiveness, and true businesslike operations,” Rep. Bill Shuster (R-PA), chairman of the T&I Committee said.

Rep. Sean Patrick Maloney (-NY) said the bill would help commuter rail lines implement positive train control (PTC) systems. Part of PRRIA aims to unlock the Federal Railroad Administration’s approval process of Railroad Rehabilitation & Improvement Financing (RRIF) loans. Rep. Maloney said the legislation would make all PTC installations “priority projects” as part of the $35 billion RRIF Program.

Meanwhile, the Senate Commerce Committee also passed the STB reauthorization bill via voice vote.

The bill would expand the STB Board from three to five members; allow the board to initiate some investigations; establish a database of complaints, as well as quarterly reports on those complaints; allow limited board meetings without public meeting notice, but with later public disclosure and eliminate the holdover limitation.

The Association of American Railroads (AAR) expressed its concern that should the legislation pass, it would hinder U.S. railroads’ ability to reinvest capital into capacity and expansion projects.

“The rail industry believes this legislation will harm the ability of the nation’s railroads to invest in the network and improve service for our shippers,” said Ed Hamberger, AAR president and CEO, who noted railroads are moving the most freight in the last seven years and commodities, such as grain, are up double digits over this time last year. “These new restrictive regulations would be imposed on the nation’s railroads at a time when investments in capacity, new equipment and new hires are needed.”

Reports do not see a strong likelihood of either the STB reauthorization bill or PRRIA advancing to either of the congressional floors before the end of the year citing a recess that begins next week for midterm elections and a full docket of issues to deal with, such as immigration and Mideast violence, once Congress resumes.

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