House Passes 2015 THUD ... $1.4 billion for Amtrak

[jis]

http://thehill.com/blogs/floor-action/house/208908-house-passes-fourth-2015-appropriations-bill

The bill, known as THUD, includes $15.7 billion for the Federal Aviation Administration and $1.4 billion for Amtrak. It would also provide $6.2 billion for Community Planning and Development programs, which would be $383 million less than the current spending level.

The number $1.4 billion is actually $1.39 billion and it is the same number as for 2014. Amtrak's request was for $1.62 billion.

The Senate Subcommittee handling thud has recommended a similar number to the Senate. The summary of the report says:

Rail Investments: $1.39 billion for Amtrak, which is consistent with the level of funding provided in fiscal year 2014. This level of funding will allow Amtrak to make investments in the state-of-good repair infrastructure projects and to operate a safe and reliable passenger rail network for the nation. The recommendation is $1 billion less than the budget request, which assumed the funding would be provided through new legislation authorizing surface transportation programs instead of the appropriations process.

Transit Investments: $11.1 billion for transit programs, $310 million above the fiscal year 2014 enacted level and $6.6 billion below the request. The Presidents budget assumed passage of a surface transportation bill that would fund most transit programs rather than the appropriations process. The bill includes $8.6 billion for formula grants, $36.5 million for research and technical assistance, and $150 million to continue modernizing the Washington Metropolitan Area Transit Authority. In addition, it provides $2.163 billion for the transit capital investment grants, an increase of $221 million to help communities build new rail and bus rapid transit capacity in California, Maryland, North Carolina, Colorado, Florida, Texas and other states. These investments help communities find solutions to road congestion, support economic development, manage population growth, and reduce air pollution

Additionally there is $550 million for TIGER.

The Senate recommendation read in detail says the following:

The Committee recommends $1,390,000,000 for the FRA to make grants to Amtrak. This amount is equal to the fiscal year 2014 enacted level. The administrations budget request would shift funding for Amtrak into a new $2,450,000,000 Current Passenger Rail Service program that would be supported by a new dedicated Rail

Account of the Transportation Trust Fund. Of the total amount recommended by the Committee, up to $350,000,000 may be used for operating grants, up to $149,000,000 may be used for debt service payments, and not less than $50,000,000 shall be used to bring stations into compliance with the Americans with Disabilities Act. Of the amounts available for capital, not less than $40,000,000 shall be used for the Gateway Program.

So Gateway gets $40 million allocated for its exclusive use, which is good news.

The House and Senate bills differ in details like grant for operations (House 340, Senate 350), etc. which will have to be ironed out in reconciliation.

 

[afigg]

Ok, so the FY2015 appropriations for Amtrak will be very close to the FY2014 amounts. With such small differences between the House and Senate bills with regards to Amtrak funding, my guess is that the Senate amounts will be in the final reconciliation bill. I expect that the Senators from NY and NJ (and perhaps most of the NEC Senators) are not going to fold on making sure $40 million is set aside for NEC Gateway PE and NEPA.

The Administrations proposals for significantly increased transportation and infrastructure spending are being ignored, so FY2015 will be, as we discussed before, a kick the can down the potholed cratered road. But for all the concerns of a Republican controlled House gutting Amtrak funding, the House appropriations bill and the rejection of Congressman Broun's amendments, show that there is majority support to keep Amtrak running, even if they are not providing enough capital to acquire new rolling stock or for major NEC projects. Don't know what the status is of the Amtrak re-authorization bill, but since the House's is matching the FY14 appropriation amounts, the re-authorization may be mostly a reprise of the 2008 PRIIA act.

The question is what will happen with the NEC operating surplus and covering the operating losses for the LD trains? Does Boardman and Amtrak continue business as usual for FY2015 while waiting for the NEC Commission cost allocation formula and NEC cost sharing debates to play out?

 

[Devil's Advocate]

I think most of the current concern is over the next round of elections giving Republicans control over the Senate. I may be wrong but I see that as a potential tipping point from status quo to oh-no.

 

[jis]

The Senate Committee Report actually mentions the Acela II acquisition and instructs Amtrak to use the currently underutilized RRIF facility.

NARP seems to think that LD trains are in jeopardy. I have no way of knowing whether they actually are or not. In any case whatever the NEC Commission comes up with does not affect FY2015. So whatever happens will be a Boardman decision, and frankly I don't see him jeopardizing LD trains when push comes to shove. Posturing is one thing. Actually being destructive is a different thing I think.

So the Politico article excerpted by Charlie below explains the Sunset in jeopardy and the food service issue. clearly. This would indicate that if Senate does not fix those, Boardman's hands would be quite tied.

 

[Anderson]

Oh no! Someone mentioned Gateway...quick, hide that or we'll spend three weeks talking about the Hudson River!

Joking aside...Amtrak didn't quite get what they hoped for, but if they break even on appropriations for the next few years I would be quite happy.

As to the re-authorization bill...well, I have to ask: If Amtrak is continuing to get appropriations and can therefore keep operating, what /does/ the authorization bill do?

 

[jis]

As to the re-authorization bill...well, I have to ask: If Amtrak is continuing to get appropriations and can therefore keep operating, what /does/ the authorization bill do?

That is sort of like asking: If the government can continue to operate based on continuing resolutions what does the appropriation bill do?
The process is supposed to be that the authorization bill lays out a plan and then the appropriations happen according to that plan. The Senate Committee Report says that they are assuming that MAP-21 is extended as is to cover this period for the purposes of appropriation, whatever that might mean. Sometimes the process does not quite work out the way it is supposed to.

 

[Eric S]

So how does this impact the Gateway Project? OK, had to get that out of my system.

Now, for my actual comments:

I am frankly surprised to see the House numbers for Amtrak looking so similar to the Senate numbers at this point.

Did the House include any TIGER funding?

 

[WoodyinNYC]

. . .

As to the re-authorization bill...well, I have to ask: If Amtrak is continuing to get appropriations and can therefore keep operating, what /does/ the authorization bill do?

Amtrak wants to order 700 single level, and 500 bilevel new cars iirc.

To get the best price, they need to contract with the supplier(s)

for years at a time. The price for 100 cars being more per coach

than the price for 700 of them. If new legislation sets up a solid

funding source, off they go.

Without that long -term funding commitment, Amtrak might buy

new equipment in batches of 130 cars, or 50 or 70 or none

per budget. Much higher price per car, but only they'd only need to

gather up a much smaller amount each time.

If Congress chooses to be penny savers and dollar wasters it will

not surprise any of us. But committing long term funding would be better.

 

[CHamilton]

Amtrak changes: The House voted for several restrictions on Amtrak funds, but rejected another. Members approved a change from Pete Sessions to block funds for the route that loses the most money — the Sunset Limited that runs from New Orleans to Los Angeles. Another amendment from Reps. Phil Gingrey and John Mica to stop federal subsidies for Amtrak’s money-losing food and beverage service was approved on a voice vote. But on a 167-250 tally, members voted down another proposal from Sessions to eliminate money for any Amtrak route that costs twice what it takes in, which the Texas congressman framed it as a matter of eliminating money-losing routes from the passenger railroad.

http://www.politico.com/morningtransportation/

 

[jis]

. . .

As to the re-authorization bill...well, I have to ask: If Amtrak is continuing to get appropriations and can therefore keep operating, what /does/ the authorization bill do?

Amtrak wants to order 700 single level, and 500 bilevel
new cars iirc.

To get the best price, they need to contract with the supplier(s)

for years at a time. The price for 100 cars being more per coach

than the price for 700 of them. If new legislation sets up a solid

funding source, off they go.

Without that long -term funding commitment, Amtrak might buy

new equipment in batches of 130 cars, or 50 or 70 or none

per budget. Much higher price per car, but only they'd only need to

gather up a much smaller amount each time.

If Congress chooses to be penny savers and dollar wasters it will

not surprise any of us. But committing long term funding would be better.

An authorization bill is not sufficient for placing an order for anything. You need an appropriation for that. The only equipment acquisition that was even mentioned in this budget cycle was not given any funding and Amtrak was told to use the RRIF facility to fund that project.

 

[jis]

Hope these are stripped out in conference. Or otherwise of course it is more continuing resolutions.

But just imagine what will happen if the Senate goes Republican in the next Congress.

 

[Ryan]

I try not to.

 

[Paulus]

Getting rid of the Sunset Limited, honestly, is a move for the better. Even with daily service it will never be a good route. Most of the long distance fleet would have been affected by the defeated amendment. With the caveat of only looking at ticket revenue, only the Auto Train, Palmetto, and Empire Builder would be safe based on 2013 cost recovery (Silver Meteor was right on at 50%; 2012 was better with the Meteor, Lake Shore Limited, and City of New Orleans joining the >50% team).

 

[afigg]

Amtrak changes: The House voted for several restrictions on Amtrak funds, but rejected another. Members approved a change from Pete Sessions to block funds for the route that loses the most money — the Sunset Limited that runs from New Orleans to Los Angeles. Another amendment from Reps. Phil Gingrey and John Mica to stop federal subsidies for Amtrak’s money-losing food and beverage service was approved on a voice vote. But on a 167-250 tally, members voted down another proposal from Sessions to eliminate money for any Amtrak route that costs twice what it takes in, which the Texas congressman framed it as a matter of eliminating money-losing routes from the passenger railroad.

We will see if this gets stripped out in the reconcilation process. it is the poison pills inserted by opponents that present the risks. The Mica and Gringey amendment is the reason why Amtrak and Boardman are pressing to "eliminate" losses on food and beverage service in 5 years. Even if it proves technically impossible.

The issue for the kill the Sunset Limited House amendment is how many Senators in AZ, NM, TX, LA will fight to save the service? The wording of the amendment could be critical. If the amendment is still in the final bill that passes both the Senate & House, would it prevent Amtrak from extending the Texas Eagle under the TE name to LA? Yes, in those circumstances, service east of San Antonio goes away.

 

[afigg]

Now, for my actual comments:

I am frankly surprised to see the House numbers for Amtrak looking so similar to the Senate numbers at this point.

Did the House include any TIGER funding?

The House original appropriations bill had only $100 million for TIGER grants, but also has language restricting the type of projects it can be used for. I gather the House bill language is tailored to block passenger rail projects from consideration.

My read is that a majority of the House members - the Dems and a plurality of the Republicans - will support $550 million for TIGER in FY15 w/o the tailored restrictions, but that many House Republicans, as is the case for many bills, are all intent on protecting their right flank prior to the fall election. Now doubly so in the aftermath of Majority Leader Cantor stunning primary loss yesterday. (which may put the 7th VA district into play in the November election as it now has 2 unknown college professors squaring off against each other.)

The House THUD bill, BTW, has a clause if I interpret correctly, limiting RRIF loans for FY2015 to no more than $5.6 billion total to any one state. I guess this is to block CA from applying for a > $5.6 billion RRIF loan in FY15, but I was not aware that CHSRA was likely to apply for RRIF loans anywhere that large in the near term.

 

[Devil's Advocate]

Hope these are stripped out in conference. Or otherwise of course it is more continuing resolutions. But just imagine what will happen if the Senate goes Republican in the next Congress.

My guess is that Amtrak funding on the federal level is slashed to the point that most of the network becomes nearly impossible to maintain. The NEC and a handful of completely disconnected state funded routes will be all that survive. On the other hand I've been wrong before and Amtrak has already survived much longer than I originally anticipated.

 

[Paulus]

We will see if this gets stripped out in the reconcilation process. it is the poison pills inserted by opponents that present the risks. The Mica and Gringey amendment is the reason why Amtrak and Boardman are pressing to "eliminate" losses on food and beverage service in 5 years. Even if it proves technically impossible.

The issue for the kill the Sunset Limited House amendment is how many Senators in AZ, NM, TX, LA will fight to save the service? The wording of the amendment could be critical. If the amendment is still in the final bill that passes both the Senate & House, would it prevent Amtrak from extending the Texas Eagle under the TE name to LA? Yes, in those circumstances, service east of San Antonio goes away.

It apparently refers only to the route with the greatest financial loss, presumably on a per passenger or operating ratio basis.

 

[neroden]

The food service poison pill is probably going to be stripped out by the Senate. They don't really want their Acela First Class food removed (which would happen under any honest accounting of a "no-subsidy" rule) and any number of rural states (ND, MT) don't want to make their trains unusable due to lack of food. It's also eminently mockable and I'm already seeing it mocked as the "bring your own lunch" amendment -- on right-wing websites.

Denham's anti-CAHSR amendment is going to be stripped out in conference. Ticking off the California state government is not going to be tolerated in the Senate, and Boxer and Feinstein are powerful.

The "kill the weakest" (measured by loss per rider) amendment might stick, simply because I don't see any Senatorial support specifically for the Sunset Limited. I'd still bet on it being thrown out in conference.

 

[jis]

The Senate bill that has come out of the Committee does not have any of these amendments in it. See the Senate Committee Report at: http://beta.congress.gov/bill/113th-congress/senate-bill/2438 and http://beta.congress.gov/congressional-report/113th-congress/senate-report/182/1

I agree and think it is highly likely that all three will get knocked out in conference.

 

[Eric S]

Did the House include any TIGER funding?

The House original appropriations bill had only $100 million for TIGER grants, but also has language restricting the type of projects it can be used for. I gather the House bill language is tailored to block passenger rail projects from consideration.

Yeah, I had forgotten about that. So, dramatically shrink the program and specifically prohibit it from being spent on passenger rail (and all rail transit, IIRC) - I really hope this portion of the House bill (as well as the anti-Amtrak amendments) gets stripped out in conference with the Senate. Otherwise, TIGER becomes just another road-funding program and may as well not exist.

 

[neroden]

I think the House version of TIGER with the anti-passenger-rail provisions is DOA.

It's funny reading the Congressional record; Latham is completely abusing the point-of-order rules to kick out amendments he doesn't like and let in ones he does like. As a result, it's obvious that a number of House members are not taking this stage of the bill-writing too seriously and are planning to make another run at the bill in conference. (If they were taking it seriously, they'd be calling for recorded votes on the points of order, which you CAN force if you're serious.)

 

[Anderson]

All I will say is "voice vote". The CAHSR amendment I can see...but that shouldn't be Amtrak money at this point in any case. I'd consider that one to be inconsequential. The F&B one is horrendously impractical and should get stripped out. The Sunset one has the best chance of sticking...but that has to do more with the fact that the Sunset's per-passenger subsidy is so far above every other route's that it isn't even funny (heck, the per-passenger-mile loss is on par with the Cardinal...and then aggravated by distance).

Edit: I have to sincerely wonder if there's a way we could get a daily Eagle to Los Angeles?

 

[Paulus]

Edit: I have to sincerely wonder if there's a way we could get a daily Eagle to Los Angeles?

 

[Anderson]

Hey, I ask under the "when is a route not a route" logic. If Amtrak could skirt an (incredibly stupid) axing of the SL by managing to only cut the SAS-NOL leg, it would limit the cities with cut rail service to...effectively just Houston.

 

[Ryan]

Heck, cancel the Sunset Limited and immediately introduce the Sunrise Unlimited, a train whose schedule bears a striking resemblance to the now-cancelled Sunset Limited. h34r: