Freight Rail Infrastructure Capacity Expansion Act of 2007

Madam Speaker, we all know that the U.S. needs a long term strategic energy policy if we are ever to break our addiction to foreign oil and become energy independent. Part of that long term solution is to focus on a policy that allows us to begin using less oil today.

The United States transportation system is the largest in the world and is almost entirely responsible for our Nation's dependence on using oil as the major source of energy. For instance, while the United States has only 4.5 percent of the world's population, it uses 25 percent of the world's oil. About 60 percent of this oil is imported. The transportation sector consumes seven of every ten barrels of oil consumed in the United States.

In addition, about 28 percent of greenhouse gas emissions, GHGs, in the U.S. are attributed to the transportation sector, making it the second largest contributor to GHG emissions, trailing only electricity generation. According to the U.S. Environmental Protection Agency, this figure is expected to rise to 36 percent by 2020.

In a carbon-constrained world, it makes sense for government to invest in transportation infrastructure that will promote the use of technologies that improve fuel efficiency, while also reducing carbon emissions and traffic congestion. Railroads are the most fuel efficient mode of surface transportation. In 2007, freight railroads moved one ton of freight an average of 436 miles per gallon of fuel--roughly the distance between Boston and Baltimore.

In its January 2008 final report to Congress, the National Surface Transportation Policy and Revenue Study Commission stated that ``intercity passenger rail is . . . more energy efficient than many other modes of passenger transportation.'' The report notes that the average intercity passenger rail train produces 60 percent lower carbon dioxide emissions per passenger-mile than the average automobile, and half the carbon dioxide emissions per passenger-mile of an airplane.

Using railroads more means consuming less fuel, and that's more important today more than ever. However, the railroads may not currently have the capacity to handle socially optimal amounts of freight and passenger traffic. Freight railroads are reinvesting record amounts of their own funds into their systems, but that will not be enough to take full advantage of railroads' potential to meet our transportation needs.

One step we must take is to provide relief to states, local communities, and captive rail customers who continue to suffer from unreasonably high railroad rates and poor service. This relief cannot be accomplished through capital improvements alone. Reforms to reduce impediments to competition must also be enacted.

Further, railroads have traditionally invested in their own networks and there is increased interest in public-private relationships to help address the projected underinvestment in our Nation's rail network. However, the government as a public partner has a duty to ensure that the public interest is best served under any agreements it enters into. We need to be careful when creating these partnerships as private businesses' objectives and motivations may not necessarily be aligned with the public interest. When public-private partnerships are used to finance, design and build roads, bridges, rail projects, and transit facilities, we must safeguard the public interests.

H.R. 2116, an excellent piece of legislation introduced by my friend from Florida, Kendrick Meek, will provide a 25 percent tax credit for railroads to invest in capital expansion. This will help augment their financial capacity for transportation investments. As we review this legislation, we should also consider including a provision that ensures prevailing wages for the workers responsible for the construction of this expansion. Amtrak ridership may reach 28 million this year--the highest it has ever been and up from 25.8 million passengers last year. In fact, Amtrak ridership and revenues are up and experiencing significant growth in all categories: short distance, long distance, and Northeast Corridor services. Last month, Amtrak had the highest revenue and ridership of any month in its history. Fiscal year 2008 year-to-date ridership is up 11 percent and revenues are up 14 percent over the previous year.

We also need to consider extending the ``Section 45G'' tax credit for investments in short line track rehabilitation that expired in 2007. The Section 45G tax credit has helped hundreds of short line railroads increase the volume and rate of track rehabilitation and improvement programs. This allows them to offer more efficient, cost-effective, and environmentally friendly rail service to communities throughout the country.

The key to reducing fuel consumption in transportation and our addiction to oil and dependence on foreign oil is by encouraging the use of the most fuel efficient modes of transportation--railroads. America's freight and passenger railroads offer a simple, cost effective and meaningful way to do this, thereby helping to ensure a sustainable future for our planet.

Mr. Speaker, I ask unanimous consent that my name be removed as a cosponsor of H.R. 2116, the Freight Rail Infrastructure Capacity Expansion Act of 2007.