Senator Kerry's December 1st Town Hall Meeting in Cambridge, MA Regarding High Speed Rail

Press Release Regarding High Speed Rail for America Act: November 25th, 2008

Kerry-Specter Bill Would Create Jobs, Stimulus, Infrastructure Investment
Mayor Michael Bloomberg, Governor Ed Rendell Applaud National High-Speed Rail Initiative

WASHINGTON, D.C. – Today, Sens. John Kerry (D-Mass.) and Arlen Specter (R-Pa.) introduced a bill to create new jobs by updating the nation’s crumbling infrastructure. The High-Speed Rail for America Act of 2008 would transform America’s outdated and underfunded passenger rail system into a world class system.

“At a time when our economy desperately needs a jumpstart, we need an effective national investment that puts Americans back to work,” said Sen. Kerry. “A first-rate rail system would protect our environment, save families time and money, reduce our dependency on foreign oil, and help get our economy moving again. The High-Speed Rail for America Act will help fix our crumbling infrastructure system, expand our economy, and match high-tech rail systems across the globe.”

“We must continue to focus our energies on building and maintaining a strong national passenger rail system in order to ease congestion of air and highway corridors connecting high-growth markets, as well as to meet energy and environmental goals,” said Sen. Specter. “The High-Speed Rail for America Act is an investment in our nation’s infrastructure and has the potential to provide tremendous economic opportunities throughout Pennsylvania and the nation.”

Sens. Sherrod Brown (D-OH), Bob Casey (D-Pa.), Hillary Clinton (D-N.Y.), Chris Dodd (D-Conn.), Dianne Feinstein (D-CA), Daniel Inouye (D-HI), Frank Lautenberg (D-N.J.), Joe Lieberman (I-CT.), Bob Menendez (D-N.J.), Chuck Schumer (D-N.Y.), Olympia Snowe (R-ME), Debbie Stabenow (D-MI), and Sheldon Whitehouse (D-R.I.), cosponsored the legislation.

New York City Mayor Michael Bloomberg and Pennsylvania Governor Ed Rendell both voiced their support for the high-speed rail initiative.

“Creating a national high-speed rail network is an ambitious goal, but one that gets more urgent by the day,” said Mayor Bloomberg. “Investing in modern infrastructure is vital to the nation’s long-term economic and environmental health - and in the short-term, it would help put more Americans back to work. Many countries in Europe and Asia are investing in high-speed rail, and if our economy is going to remain competitive, we have to start catching up. Greater investment in our railways is a top goal of Building America's Future, the infrastructure coalition that Governors Rendell and Schwarzenegger and I created. I applaud Senator Kerry for tackling the issue head-on, and I strongly support his efforts to create the high-speed rail network our country needs.”

“This long-overdue national investment in high-speed rail would help to stimulate economic recovery while creating good jobs that cannot be outsourced,” said Gov. Rendell, one of the founding co-chairs of the Building America’s Future coalition. “Expanding our nation’s critical rail infrastructure will make our transportation network more efficient, reduce traffic pressure on our already busy interstate highways, and improve the environment.”

The High-Speed Rail for America Act of 2008 builds upon the Passenger Rail Investment and Improvement Act of 2008 which reauthorizes Amtrak and authorizes $1.5 billion over a five-year period to finance the construction and equipment for eleven high-speed rail corridors. It provides billions of dollars in both tax-exempt and tax credit bond and provides assistance for rail projects of various speeds. The bill creates the Office of High-Speed passenger rail to oversee the development of high-speed rail and provides a consistent source of funding.

Specifically, the High-Speed Rail for America Act of 2008 provides $8 billion over a six-year period for tax-exempt bonds which finance high-speed rail projects which reach a speed of at least 110 miles per hour It creates a new category of tax-credit bonds – qualified rail bonds. There are two types of qualified rail bonds: super high-speed intercity rail facility bond and rail infrastructure bond. Super high-speed rail intercity facility bonds will encourage the development of true high-speed rail. The legislation provides $10 billion for these bonds over a ten-year period. This would help finance the California proposed corridor and make needed improvements to the Northeast corridor. The legislation provides $5.4 billion over a six-year period for rail infrastructure bonds. The Federal Rail Administration has already designated ten rail corridors that these bonds could help fund, including connecting the cities of the Midwest through Chicago, connecting the cities of the Northwest, connecting the major cities within Texas and Florida, and connecting all the cities up and down the East Coast.

Senator Kerry's Speech on High Speed Rail for America Act

The following speech was given by Senator Kerry last month regarding High Speed Rail for America. Personally I find this speech well-written and well in-depth and shows that this proposal has potential to gain support.

While the U.S. is investing heavily in other forms of transportation, our investment in world class rail is dwarfed by other countries. For example, Germany's federal government gives its states $8.9 billion a year for rail projects, France spends twenty times more per capita on rail than the U.S., and the Ministry of Railways in China invested $19.6 billion in rail in the first half of 2008 alone. That is why we need to provide a constant source of funding for investment in high-speed rail. The High-Speed Rail for America Act of 2008 will take our outdated and underfunded passenger rail system and transform it into a world class system.

The High-Speed Rail for America Act of 2008 builds on the authorization of highspeed rail grants by providing billions of dollars in both tax exempt and tax credit bonds. It provides assistance for rail projects of various speeds. The bill creates the Office of High-Speed Passenger Rail to oversee the development of high-speed rail and provides a consistent source of funding. This office will ensure that we have the leadership to keep this mission on track.

High-speed rail is often the fastest and most reliable way to get from downtown to downtown between most cities 100-500 miles apart. High-speed rail can save up to an hour per trip when compared to air travel and reduces trip time by more than 50 percent compared to driving. The legislation provides $8 billion over a 6-year period for tax-exempt bonds which finance high-speed rail projects which reach a speed of at least 110 miles per hour. This speed is often most practical for corridors of less than 100 miles or for less travelled routes which cannot justify the investment into world class high-speed rail traveling at 150 miles per hour.

The High-Speed Rail for America Act of 2008 also creates a new category of tax-credit bonds: qualified rail bonds. There are two types: super high-speed intercity rail facility bond and rail infrastructure bond. Super high-speed rail intercity facility bonds will encourage the development of true high-speed rail. The legislation provides $10 billion for these bonds over a six-year period. Rail projects that reach a speed of at least 150 miles per hour will be eligible for these bonds. This would help finance projects including the proposed California corridor and make needed improvements to the Northeast corridor.

Rail infrastructure bonds will fund projects approved by the U.S. Department of Transportation and be part of a State's official rail plan. The High-Speed Rail for America Act of 2008 provides $5.4 billion over a 6-year period for this type of bond. The Federal Rail Administration has already designated ten rail corridors that these bonds could help fund, including connecting the cities of the Midwest through Chicago, connecting the cities of the Northwest, connecting the major cities within Texas and Florida, and connecting all the cities up and down the East Coast. These are projects that are ready to go, but they need a source of financing.

The need for a bold shift in the way we approach transportation is clear. Traffic congestion continues to worsen in cities across the country, creating a $78 billion drain on the U.S. economy with 4.2 billion lost man hours of work and 2.8 billion gallons of wasted fuel. Last year, domestic flight delays cost the economy $41 billion and consumed about 740 million additional gallons of jet fuel waiting on the ground. Passenger rail reduces congestion and is an effective alternative to highway and air transportation. Americans want alternatives--and we can deliver them. We must focus on making the transportation sector part of the solution to global climate change. The transportation sector accounts for approximately one-third of U.S. CO2 emissions--and automobiles make up 60 percent of that. Public transportation is an essential part of the solution to global warming. According to the American Public Transportation Association, public transportation reduces CO2 emissions by 37 million metric tons annually and saves the average American household over $6,000 annually.

The demand for alternative forms of transportation is only growing. The number of people riding Amtrak surged by more than 13 percent in July 2008 from a year earlier--the most passengers carried in any month during Amtrak's 37 year history. Amtrak ridership set an all-time record for fiscal year 2008, achieving growth of 11 percent. As we look towards economic stimulus legislation next year, we must rethink the approach we have taken towards mobility in this country. Countries around the world have realized the benefits of high-speed rail and continue to build out their systems as we fall farther and farther behind. For far too long, we have not made adequate investment in our infrastructure. We cannot let this pattern continue. We have all heard the skeptics and cynics dismiss the idea of high-speed rail for decades, but due to high energy prices, increased passenger rail ridership, and the need to reduce greenhouse gasses, the time is ripe for a big change. Not only will this change create a modern and reliable transportation network in the Untied States, it will provide tens of thousands of good new jobs and help stimulate the sluggish economy. I pledge to continue fighting for the development of a modern high-speed rail system connecting the major cities across America, and I ask all my colleagues to support making this vision a reality.

Senator Kerry for High Speed Rail

I was looking on the blog, 'Trains for America' and the author posted the full letter Senator Kerry sent out to his fellow colleagues concerning a proposal he has made. You can read it below.

Dear Colleague:

With gas prices over $4 a gallon, I believe the sense of urgency has finally arrived, and the time is ripe to make a long-term investment in passenger rail – and make the United States a world leader again in high-speed rail. It would reduce the congestion on our highways and in the skies, reduce our use of foreign oil, and reduce greenhouse gas emissions. High-speed rail would be the fastest and most reliable way to get from downtown to downtown for most city pairs between 100-500 miles apart, saving up to an hour per trip when compared to air and cutting trip time by more than 50 percent compared to driving. Perhaps most importantly, the bill would create tens of thousands of good new jobs and help stimulate the sluggish economy.

That’s why I am writing to ask for your support for the High-Speed Rail for America Act. The legislation creates the funding mechanism to create a world class high-speed rail system in the United States, and establishes an office of high-speed rail in the Federal Railroad Administration to ensure we have the leadership needed to keep this mission on track.

I know that you’ve heard the skeptics and cynics dismiss the idea of high-speed rail for decades. But recently, we have seen a shift in the way Americans are using transportation that indicates the time is ripe for a big change. The American Public Transportation Association recently reported that streetcars, trolleys and other light rail experienced a 10.3 percent increase in ridership for the first quarter of this year. It’s no secret why this is happening: According to a 2007 report by the Texas Transportation Institute, traffic congestion continues to worsen in cities across the country, creating a $78 billion drain on the U.S. economy with 4.2 billion lost man hours of work and 2.8 billion gallons of wasted fuel. In 2007, domestic flight delays cost the economy $41 billion and consumed about 740 million additional gallons of jet fuel. Passenger rail is an effective alternative to highway and air transportation. Americans want alternatives – and we can deliver them.

I believe the High Speed Rail for America Act helps to point the way forward. The bill provides a consistent source of funding – over the course of six years, this bill provides $200 million per year in grants, $3 billion in tax exempt bonds, $10 billion in tax credit bonds for high-speed intercity rail facilities, and $5.4 billion in tax credit bonds for rail infrastructure. The legislation is designed to fund high-speed passenger trains that can reach a speed of at least 150 mph as well as passenger trains for shorter distances which can reach a speed of 110 mph.

We have ignored our rail infrastructure for far too long and this bill is an important step towards creating a modern and reliable transportation network in the United States. If you would like to be an original cosponsor of this legislation or need additional information… [contact information omitted].