Hearings to examine modernizing America's rail network.

1[Senate Hearing 119-154]2[From the U.S. Government Publishing Office]34                                                        S. Hrg. 119-15456                    ON THE RIGHT TRACK: MODERNIZING7                         AMERICA'S RAIL NETWORK89=======================================================================1011                                HEARING1213                               before the1415                SUBCOMMITTEE ON SURFACE TRANSPORTATION,16                    FREIGHT, PIPELINES, AND SAFETY1718                                 of the1920                         COMMITTEE ON COMMERCE,21                      SCIENCE, AND TRANSPORTATION22                          UNITED STATES SENATE2324                    ONE HUNDRED NINETEENTH CONGRESS2526                             FIRST SESSION27                               __________2829                             JUNE 18, 202530                               __________3132    Printed for the use of the Committee on Commerce, Science, and33                            Transportation,3435                [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]3637                Available online: http://www.govinfo.gov3839                                ______4041                   U.S. GOVERNMENT PUBLISHING OFFICE424361-521 PDF                 WASHINGTON : 20254445       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION4647                    ONE HUNDRED NINETEENTH CONGRESS4849                             FIRST SESSION5051                       TED CRUZ, Texas, Chairman52JOHN THUNE, South Dakota             MARIA CANTWELL, Washington,53ROGER WICKER, Mississippi              Ranking54DEB FISCHER, Nebraska                AMY KLOBUCHAR, Minnesota55JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii56DAN SULLIVAN, Alaska                 EDWARD MARKEY, Massachusetts57MARSHA BLACKBURN, Tennessee          GARY PETERS, Michigan58TODD YOUNG, Indiana                  TAMMY BALDWIN, Wisconsin59TED BUDD, North Carolina             TAMMY DUCKWORTH, Illinois60ERIC SCHMITT, Missouri               JACKY ROSEN, Nevada61JOHN CURTIS, Utah                    BEN RAY LUJAN, New Mexico62BERNIE MORENO, Ohio                  JOHN HICKENLOOPER, Colorado63TIM SHEEHY, Montana                  JOHN FETTERMAN, Pennsylvania64SHELLEY MOORE CAPITO, West Virginia  ANDY KIM, New Jersey65CYNTHIA LUMMIS, Wyoming              LISA BLUNT ROCHESTER, Delaware66                 Brad Grantz, Republican Staff Director67           Nicole Christus, Republican Deputy Staff Director68                     Liam McKenna, General Counsel69                   Lila Harper Helms, Staff Director70                 Melissa Porter, Deputy Staff Director71                     Jonathan Hale, General Counsel7273                                 ------7475    SUBCOMMITTEE ON SURFACE TRANSPORTATION, FREIGHT, PIPELINES,76                            AND SAFETY7778TODD YOUNG, Indiana, Chairman        GARY PETERS, Michigan, Ranking79JOHN THUNE, South Dakota             AMY KLOBUCHAR, Minnesota80ROGER WICKER, Mississippi            BRIAN SCHATZ, Hawaii81DEB FISCHER, Nebraska                EDWARD MARKEY, Massachusetts82DAN SULLIVAN, Alaska                 TAMMY DUCKWORTH, Illinois83ERIC SCHMITT, Missouri               BEN RAY LUJAN, New Mexico84BERNIE MORENO, Ohio                  ANDY KIM, New Jersey85SHELLEY MOORE CAPITO, West Virginia8687                            C O N T E N T S8889                              ----------90                                                                   Page91Hearing held on June 18, 2025....................................     192Statement of Senator Todd........................................     193Statement of Senator Peters......................................     394    Letter dated June 17, 2025 to Hon. Gary Peters and Hon. Todd95      Young from Robert A. McCraight, Mayor, City of Romulus.....     596Statement of Senator Cantwell....................................     797Statement of Senator Cruz........................................    5398Statement of Senator Moreno......................................    5799Statement of Senator Lujan.......................................    60100Statement of Senator Kim.........................................    62101Statement of Senator Markey......................................    66102103                               Witnesses104105Ian Jefferies, President and Chief Executive Officer, Association106  of American Railroads..........................................    10107    Prepared statement...........................................    11108Peter Gilbertson, President and Chief Executive Officer,109  Anacostia Rail Holdings Company; and Mmber, American Short Line110  and Regional Railroad Association..............................    18111    Prepared statement...........................................    20112Husein A. Cumber, Senior Advisor, Brightline Holdings, LLC.......    33113    Prepared statement...........................................    35114Clarence E. Anthony, CEO and Executive Director, National League115  of Cities, and former Mayor of South Bay, Florida..............    40116    Prepared statement...........................................    41117118                                Appendix119120Anne C. Reinke, President and CEO, Intermodal Association of121  North America (IANA), prepared statement.......................    69122Letter dated August 6, 2024 to Members of Congress from various123  organizations regarding regulation and deregulation............    71124Letter Re: Manistee County Safer Southern Rail Route from Lisa125  Sagala, Manistee County, Michigan, Controller/Administrator....    74126Letter dated June 17, 2025 to Senator Gary Peters from Justin127  Horvath, President/CEO, Shiawassee Economic Development128  Partnership....................................................    75129Letter dated June 24, 2025 to Hon. Todd Young and Hon. Gary130  Peters from Michael E. Duggan, Mayor, City of Detroit..........    77131Letter dated June 24, 2025 to Hon. Gary Peters from Amy O'Leary,132  CAE, Executive Director, Southeast Michigan Council of133  Governments....................................................    80134Letter dated June 25, 2025 to Hon. Gary Peters from Peter135  Anastor, Director, Office of Rail, State of Michigan,136  Department of Transportation...................................    83137Response to written questions submitted to Ian Jefferies by:138    Hon. Ted Cruz................................................    85139    Hon. Todd Young..............................................    85140    Hon. Amy Klobuchar...........................................    85141    Hon. Gary Peters.............................................    86142    Hon. Tammy Duckworth.........................................    88143Response to written questions submitted to Peter Gilbertson by:144    Hon. Todd Young..............................................    88145    Hon. Amy Klobuchar...........................................    89146    Hon. Gary Peters.............................................    91147Response to written questions submitted to Husein A. Cumber by:148    Hon. Todd Young..............................................    94149    Hon. Gary Peters.............................................    94150    Hon. Tammy Duckworth.........................................    96151152                    ON THE RIGHT TRACK: MODERNIZING153                         AMERICA'S RAIL NETWORK154155                              ----------156157                        WEDNESDAY, JUNE 18, 2025158159                               U.S. Senate,160Committee on Commerce, Science, and Transportation,161Subcommittee on Surface Transportation, Freight, Pipelines,162                                                and Safety,163                                                    Washington, DC.164    The Subcommittee met, pursuant to notice, at 10:04 a.m., in165room SR-253, Russell Senate Office Building, Hon. Todd Young166[presiding], Chairman of the Subcommittee, presiding.167    Present: Senators Young [presiding], Cruz, Moreno, Peters,168Cantwell, Markey, Lujan, and Kim.169170             OPENING STATEMENT OF HON. TODD YOUNG,171                  U.S. SENATOR FROM INDIANA172173    Senator Young. This meeting of the Subcommittee on Service174Transportation, Freight, Pipelines, and Safety will come to175order. Good morning, and welcome to this hearing where we will176discuss an issue of national importance, the safety,177innovation, and future of America's railways.178    As Congress looks toward the next Service Transportation179Reauthorization, this hearing is a timely opportunity to180examine the current state of our freight and passenger rail181networks. Our rail networks are important to both our economy182and to our national security as they move energy, goods, and183people across the country.184    So I am excited today to consider policy and regulatory185reforms that support a modern national rail policy,186specifically ways to modernize our rail ecosystem with a focus187on improving safety, boosting efficiency, fostering innovation,188and ensuring this ecosystem can meet the demands of the present189and the future.190    I would like to thank our witnesses for being here today191and extend a special thanks to Mr. Gilbertson of Anacostia Rail192Holdings Company for representing the state of Indiana through193the Chicago South Shore and South Bend Railroad, and the194Louisville and Indiana Railroad.195    As I mentioned, rail is the backbone of our transportation196system and our economy. It connects communities, moves freight197efficiently, and supports thousands of jobs. From small towns198to major cities, rail keeps America moving.199    Our freight rail ecosystem is certainly among the most200efficient in the world, but is not averse to an aging201infrastructure and growing demand. So we should be pragmatic202and examine how to make improvements.203    To meet the hands of the future, we must invest in adequate204infrastructure, understand where bottlenecking hurts our supply205chains and delays the transport of goods and consumers, and206support the skilled workforce that powers our railroads. We207must also examine how advancements in technology can address208challenges we currently see. Technology is already making a209difference.210    Systems like Positive Train Control, or PTC, are designed211to prevent train to train collisions, over speed derailment,212incursions into established work zones, and movements of trains213through switches left in the wrong position.214    And now, new tools like AI powered track monitoring,215automated inspections, and predictive maintenance offer even216greater potential to prevent issues before becoming problems.217    Take, for example, inspection portals, which use high218resolution machine vision and AI to complement manual detection219work to understand where defects may exist. This technology is220a prime example of how AI can help our workforce maintain rail221cars with greater efficiency and potentially increase safety,222while at the same time reducing constraints in delivery or223service time.224    These advancements can increase reliability, reduce delays,225save money, and increase safety for railroad workers and the226public. Whether in freight or passenger rail, real-time data227and proactive maintenance are keys to a resilient network. But228innovation cannot flourish if outdated or duplicative229regulations get in the way.230    Many existing rules are prohibitive to testing or deploying231technology or can slow down safety upgrades and infrastructure232improvements. A more agile, modern regulatory framework will233help the rail industry innovate and adopt new technologies234faster without compromising safety.235    At the same time, we can't lose sight of the needs of hard236infrastructure. Replacing aging tracks, modernizing bridges,237upgrading rail signal systems, and improving rail yards are238foundational to both safety and economic competitiveness. These239investments help goods move faster, more reliably, and at lower240costs. Every year, rail crossings see devastating and241oftentimes preventable accidents.242    Smarter warning systems, better barriers, and vehicle243infrastructure communication can reduce risks and save lives.244So, as we have this conversation, safety must remain our top245priority. All of this is made possible by our rail workforce.246Investing in training, modern safety protocols, and new247technology ensures workers are prepared for the demands of a248modern system.249    Their expertise is essential to safety and performance. Our250approach must be all-encompassing to embrace new technologies,251invest in critical infrastructure, empower the workforce, and252modernize regulations, and we must work to encourage public-253private partnerships to accomplish these goals.254    With more than 4,500 miles of freight and passenger rail,255my state of Indiana plays a central role in national logistics.256Projects like the South Shore Line and West Lake Corridor show257how public-private partnerships can deliver big results,258enhancing safety and regional connectivity.259    So the witnesses on today's panel are well suited to260discuss each of these critical issues, and I look forward to a261thoughtful conversation to help jumpstart our work to262reauthorize service transportation programs.263    Thank you again for being here, and I now recognize my good264friend and partner on this subcommittee, Ranking Member Peters,265for his opening remarks.266267                STATEMENT OF HON. GARY PETERS,268                  U.S. SENATOR FROM MICHIGAN269270    Senator Peters. Well, thank you. Thank you, Mr. Chairman,271for that. And welcome to our four witnesses here to--before us272today. We look forward to your testimony on how Congress can273build on some previous investments that we made to strengthen274our railroad system to ensure that we can safely and275efficiently transport both goods and people.276    Americans rely on the U.S. rail network to safely move277roughly 28 million passengers and 1.6 billion tons of goods278each and every year. And no state better exemplifies the279reality of and the opportunities for passenger and freight rail280than my home state of Michigan.281    Michigan is home to roughly 3,900 miles of track, including282more than 600 miles of State-owned rail lines managed by the283Michigan Department of Transportation, as well as 29 private284freight rail operators and companies. Michigan is also home to285three Amtrak lines that operate throughout our state.286    And as home of the auto industry and the heart of American287manufacturing, Michigan's freight rail network delivers cars,288agricultural products, construction materials, and everyday289goods all over our state, as well as across international290borders. Michigan is also leading the way when it comes to291passenger rail.292    The Michigan Department of Transportation has effectively293taken advantage of resources that Congress provided to improve294passenger rail service. This includes efforts to restore Amtrak295service to the historic Michigan Central Station in downtown296Detroit, and to expand that service across the Canadian border297into Windsor in the coming years, a project that I am going to298continue to fight for.299    Continued investment in passenger rail infrastructure and300capacity is absolutely essential to realizing this vision and301to improving the growing services across our national network.302It must be a key priority for Congress and in the next Surface303Transportation Reauthorization bill.304    But let's be clear, Michigan's rail infrastructure progress305is largely thanks to the investments we made in the bipartisan306infrastructure law. The bipartisan infrastructure law invested307a historic $102 billion for rail infrastructure, including308funding for the Federal-State partnership for Passenger Rail309Grant Program and the Corridor ID Program, as well as the310creation of critical new programs like the Railroad Crossing311Elimination Grant Program.312    This funding has specifically allowed Michigan to conduct313the analysis and the planning that they need to support future314expansion of passenger rail on all three of our Amtrak lines,315Wolverine, the Blue Water, and the Pierre Marquette.316    The Railroad Crossing Elimination Grant Program we created317is also improving safety and efficiency across Michigan318communities. It is helping the City of Monroe improve response319times for emergency response, as well as ease traffic320congestion. It is funding the elimination of a dangerous rail321crossing in Trenton, Michigan.322    It is consolidating three railroad crossings at a key323intersection on Lonyo and Central Street in Detroit to improve324safety, mobility, and freight transportation throughout the325region. And it is giving Manistee and Kalamazoo the runway they326need to plan for the removal of harmful crossings that are327causing issues for their residents.328    Michigan is certainly not alone. Communities across the329country have benefited from increased resources to strengthen330their rail infrastructure, but this work is far from over.331Programs like Corridor ID and Railroad Crossing Elimination332Grants can only reach their full potential if we follow up with333continued investment to ensure projects that are already334underway are not abandoned midway.335    I look forward to hearing from our witnesses today about336the impact this investment is having on the ground and the337importance of maintaining these programs for the rail network.338And finally, we know that a fundamental part of strengthening339our rail system is taking necessary steps to make it safer. We340have seen that when railroad safety is compromised, entire341communities suffer.342    We all witnessed that with the East Palestine train343derailment in 2023, but there are many more close calls that344don't make the news, and our communities are calling for action345to prevent tragedy from impacting their residents.346    One such case is in Romulus, a city in Southeast Michigan347that has seen multiple train derailments over the past 5 years.348We received testimony for the record from Romulus Mayor Robert349McCraight, and I would like to enter that into the record,350without objection, Mr. Chairman.351    Senator Young. Without objection.352    [The information referred to follows:]353354    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]355356    Senator Peters. The testimony sheds light on his357community's firsthand experience with derailments, where a358first responder safety was put in jeopardy because they were359not properly informed of hazmat cargo in the derailed cars. He360is calling for Congressional action.361    And that is why last Congress I supported the Railway362Safety Act, which addressed key concerns like first responder363communication and preparation, wayside detection improvements,364inspection standards, and two crew requirements, and much more.365Last Congress, we also laid groundwork for bipartisan action to366address concerns that emerged from East Palestine crash.367    And it is my hope that this committee will be able to act368in the same bipartisan manner once again. I would like to take369a moment to thank the Shiawassee Economic Development370Partnership, the County of Manistee, and the other Michigan371stakeholders reaching out to my office to share their372perspective on the needs for their rail system.373    And I look forward to hearing from each and every one of374you here today on how we can take steps to build on the375bipartisan infrastructure law and ensure the safety of our376national rail network. Thank you, Mr. Chairman.377    Senator Young. I know our Full Committee Chairman, Senator378Cruz, wants to make every effort to be here. I believe he will379be here later. But in the meanwhile, I will recognize Ranking380Member Cantwell for an opening statement.381382               STATEMENT OF HON. MARIA CANTWELL,383                  U.S. SENATOR FROM WASHINGTON384385    Senator Cantwell. Thank you, Chairman Young. And thank you386to you and Senator Peters for having this important hearing387today, and to our witnesses. I am glad that we are having such388an important hearing at such an important time.389    In my state, rail is critical. 1.3 million people and over390100 million tons of freight, over $30 billion travel by rail in391Washington State every year. So as Congress begins to consider392a Surface Transportation Reauthorization, we need to do three393things. Increase rail investment, including rail crossing394investment to move products quickly and safely.395    I like in your testimony, Mr. Anthony, how you say that396safety starts with the Commerce Committee. I think your subhead397is, rail safety starts and ends with the Commerce committee.398Thank you for that. That is very important.399    And also, you had a subhead, rail safety impacts small400cities disproportionately in clear trend lines of hazardous401incidents. So again, shows you what is at stake when it comes402to safety. Our poor, smaller towns just don't have the ability403to respond, and East Palestine showed that. Strengthening404safety requirements to prevent derailments, which have more405than doubled in the State of Washington in the last decade.406    We have obviously had increase in traffic, but we have also407had increase in derailment. And continue robust funding for408passenger rail programs and Amtrak. I do like, Mr. Gilbert, in409your testimony calling out the shortfall system. Obviously we410need to continue to have improvements. These are the backbones411of moving a lot of product, a lot of agriculture product to get412to ports as well.413    So, ports in the State of Washington export over $19414billion worth of agricultural products every year, $19 billion.415Of this, $11 billion worth of those products such as soy, bean,416wheat, corn come from other states. So, we are basically doing417the work of getting this Midwest product to international418destinations.419    That includes delivering product from Minnesota, Iowa,420Nebraska, North Dakota, South Dakota, Kansas, and Missouri, and421I have got to believe Indiana, although it is not on here. But422I have got to believe, Mr. Chairman, that there is something423that we deliver.424    Due to our rail network, farmers in the Midwest and Ohio425River Valley markets can get their products to Washington426ports, onto the international markets in just three to five427days. That is why we want to make sure that we don't see the428congestion or the canceling. Thanks to the bipartisan429infrastructure law, we made critical investments in the supply430chain.431    We increased rail capacity at the Port of Kalama, one of432the largest grain exporters on the West Coast, which will433increase efficiency by 20 percent to 30 percent. And we are434rehabilitating the Washington State Grain Train, which carries43520 percent to 25 percent of Washington's wheat each year,436allowing the line to move heavier cars at twice the speed.437    And the next bill must increase the investment in freight438if we are going to keep U.S. products moving. Just this past439week, we had a tragic reminder though about why rail safety is440so important. In my hometown of Edmonds, Washington, a person441was killed on the tracks, and I offer my condolences to the442family and loved ones of that individual.443    As a result of this tragedy, the freight train stopped on444the tracks for 2 hours, and you might think, well, what is445that? Necessarily, for sure. But it just happened to also block446the Edmonds ferry.447    So our crossing right there then stopped the ferry, a big448part of our highway marine system, from delivering passengers449unable to disembark for throwing off the ferry schedule. In450fact, earlier this week, the Seattle Times ran a photo of ferry451passengers climbing across the stopped train to get to the452docks. So, it just shows you the complexity of the interface of453at-grade crossings. This is so incredibly dangerous.454    And the people were just trying to get to dock or just455enjoy the waterfront, not realizing how perilous this really456was. That is why I created the $3 billion Railroad Crossing457Elimination Program in the bipartisan infrastructure law, along458with my colleague, Senator Blunt, to try to address these at-459grade crossings and allow cities to not be as managed from a460top-down DOT process but have this come from the bottom-up so461communities could try to help themselves.462    I think the program has definitely been oversubscribed. The463need for funding is great. Since 2021, FRA has received $4.5464billion in eligible applications for the Grade Crossing465Elimination Program. Nearly three times the funding that has466been made available so far. So as we discuss the next Surface467Transportation Authorization, ensuring this program is fully468funded I think should be a priority.469    We must also do more to prevent trains carrying hazardous470materials from derailing in our communities. And this is471critically important to the state of Washington where we--where4721.6 billion gallons of crude oil are transported by rail473through our communities and across the state.474    In February, I wrote to Chairman Cruz on the second475anniversary of East Palestine derailment, urging him to advance476legislation to ensure that we have learned the lessons from477this tragedy. The Rail Safety Act, which was authored by now478Vice President Vance, and passed out of the Committee last479Congress with bipartisan support, included important provisions480that could have prevented the tragic disaster in East Palestine481and will improve the safety of crude oil trains in the state of482Washington.483    I think this should be part of the Surface Transportation484Reauthorization. And finally, when it comes to Amtrak and the485I-5 corridor, this service is critical to helping what we486believe will be 750,000 fans visiting Seattle to move around487the region at the 2026 FIFA World Cup. So, this issue is488critically important. And thanks to Federal investment in489passenger rail at Amtrak Cascades, we will get new passenger490rail cars next year to improve the reliability of that491experience.492    The next bill must also ensure Amtrak and states receive493predictable funding so we can have the long term capital494investments in passenger rail. So, I look forward to working495with both of you, and with Chairman Cruz, in how Congress can496support rail, freight, and passenger, and ensure safety in our497cities and towns. Thank you, Mr. Chairman.498    Senator Young. Well, thank you, Senator Cantwell. As the499proud co-chair of the Senate Soccer Caucus, I have yet another500value proposition to ensure rail safety here today. As if I501didn't need more, because this is such an important hearing.502So, Senator Cruz will be with us for questions.503    The show will go on. I would like to introduce our504witnesses for today. Each of them brings deep knowledge and505firsthand experience from the freight and passenger rail506industries. Our first witness is Mr. Ian Jefferies, President507and CEO of the Association of American Railroads. He brings508over a decade of experience in transportation policy, including509roles at Federal agencies and the Senate Commerce Committee.510    Our second witness is Mr. Peter Gilbertson, President and511CEO of the Anacostia Rail Holdings Company, a holding company512for short-line railroads, several of which are in the great513state of Indiana. He is here on behalf of the American Short514Line and Regional Railroad Association.515    Our third witness today is Mr. Husein Cumber, Senior516Advisor of Brightline Holdings, where he supports the517development of high-speed and inner-city passenger rail518projects. Mr. Cumber brings years of experience in rail519infrastructure, having held leadership roles in both the public520and private sectors.521    Our final witness is Mr. Clarence Anthony. Mr. Anthony is522the CEO and Executive Director of the National League of523Cities, which represents and advocates for local governments at524this Federal level. I will recognize Mr. Jefferies to deliver525your opening statement. Mr. Jefferies, you are recognized for 5526minutes.527528             STATEMENT OF IAN JEFFERIES, PRESIDENT529                  AND CHIEF EXECUTIVE OFFICER,530               ASSOCIATION OF AMERICAN RAILROADS531532    Mr. Jefferies. Chairman Young, Ranking Member Peters,533members of the Committee, thank you for the opportunity to534testify today on modernizing the rail network.535    I am President and CEO of the Association of American536Railroads, where we represent the Nation's major freight537railroads. And I am honored to discuss the vital role our538industry plays and policies that will drive progress. Freight539rail is a cornerstone of the U.S. economy.540    Safe, efficient, and robustly funded, railways build,541maintain, and invest in their own network to the tune of nearly542$25 billion in annual investment. This level of self-543sufficiency is unmatched in the transportation sector and544ensures that railroads remain a reliable backbone in the supply545chain. It also tracks one to one with safety.546    Railroads today lead major industries in worker safety--547safer than trucking, airlines, manufacturing, construction, and548agriculture, just to name a few. And while the last decade has549been the safest in our entire history with significant declines550in train accidents and employee injuries, further progress is a551necessity. Economically, freight rail supports nearly every552single industry.553    Moving more than 1.6 billion tons of goods each year, that554is 40 percent of long-haul freight. From agricultural products555to automobiles, chemicals to consumer goods, railroads connect556communities and businesses across the country and beyond.557Railroads' efficiency saves businesses billions annually and558enhances U.S. global competitiveness.559    With real rates falling 42 percent over the last four560decades, we are an ally in the fight against inflation. As this561committee begins to consider the next Surface Reauthorization562Bill, we encourage Congress to prioritize policies to uphold563our ability to invest in infrastructure, support innovation,564and advance data driven safety improvements. Reauthorization is565a key moment to modernize our safety framework.566    Various forms of inspection technology enable more567frequent, precise monitoring that improves safety and568efficiency across the network. Yet this industry is often still569beholden to regulations published in the 1970s or even earlier.570Congress has a great opportunity to embrace performance-based571regulations that reward outcomes, not outdated processes.572    Technology is also redefining how rail integrates with573global logistics. Real-time GPS, AI-driven scheduling,574predictive analytics to increase customer visibility, reduce575congestion, and improve service. But regulators must catch up.576Outcome focused policy and streamlined waiver and pilot577processes would help rail deliver a safe, efficient system that578businesses and communities rely on.579    Additionally, programs such as the Railroad Crossing580Elimination Grant Program are crucial to improve grade crossing581safety and reducing community impacts. Multimodal programs like582Infra and Mega are also improving freight flows throughout the583country, not to mention rail specific programs like CRISI,584which I know my colleague will get into more details on.585    And while robust funding is key, timely execution of586dollars is just as important. Streamlining grant application,587review, and award processes, paired with common sense588permitting reforms, are critical in this reauthorization. And589more broadly, Congress must address the insolvency of the590highway trust fund. Estimates show that without legislative591action, the trust fund will face insolvency by 2028,592accumulating a $280 billion deficit by 2034. Clearly, the593current gas tax model is insufficient and not sustainable, and594such heavy subsidy requirements blow the competitive framework595out of whack with our primary competitor.596    Modernizing to an equitable weight and, or distance-based597user fee system or other models are sensible paths to consider598for the future. And let's remember that lawmakers initiated599this shift in the last transportation bill, but implementation600at the DOT is stalled.601    Further, Congress must also reject calls to increase truck602size and weight limits, which would only exacerbate funding603gaps, degrade roads, and further increase congestion on our604already clogged highways. Again, it is about the level of the605playing field when it comes to competition.606    Working together, though, these policies will help607railroads drive the economy forward, support safety, service,608and innovation. Thank you, and I look forward to your questions609today.610    [The prepared statement of Mr. Jefferies follows:]611612  Prepared Statement of Ian Jefferies, President and Chief Executive613               Officer, Association of American Railroads614    On behalf of the members of the Association of American Railroads615(AAR), thank you for the opportunity to discuss the reauthorization of616Federal surface transportation legislation. AAR freight railroad617members account for some 84 percent of U.S. freight railroad mileage,61893 percent employees, and 97 percent of revenue. The major freight619railroads in Canada and Mexico are AAR members, as are Amtrak and620several commuter rail systems.621    For those who may be less familiar with the AAR, we've been around622for 90 years, though our predecessors date back to the early days of623railroading in the 19th century. We advocate for policies that promote624the economic and operational health of the freight rail industry and625that allow railroads to better serve their customers, the communities626in which they operate, and the broader economy.627    AAR's members are committed to working cooperatively with their628employees, their customers, policymakers, and others to help railroads629meet the freight transportation needs of our country safely and630efficiently.631America Benefits Greatly When Freight Moves by Rail632    America's freight rail network is the best in the world, spanning633more than 135,000 route-miles.\1\ By linking businesses to each other634domestically and abroad, freight railroads have played an essential635role in America's economic development for nearly 200 years.636---------------------------------------------------------------------------637    \1\ Route-miles refers to the length of a single rail route even if638the track is double or triple-tracked in some sections. Including639parallel tracks, rail yards, and sidings adds tens of thousands of640miles to the rail mileage total.641---------------------------------------------------------------------------642    Freight railroads remain indispensable today, serving nearly every643industrial, wholesale, retail, and resource-based sector of our644economy. They carry enormous amounts of corn, wheat, soybeans, and645other farm products; fertilizers, plastic resins, and a vast array of646other chemicals; coal to generate electricity; cement, sand, and647crushed stone to build our highways; lumber and drywall to build our648homes; animal feed, canned goods, corn syrup, frozen chickens, beer,649and countless other food products; steel and other metal products;650newsprint and other paper products; autos and auto parts; iron ore for651steelmaking; wind turbines; airplane fuselages; machinery and other652industrial equipment; and much more.653654[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]655656    Meanwhile, rail intermodal--the transport of shipping containers657and truck trailers on railroad flatcars--has grown tremendously over658the past 30 years. Today, just about everything found on a retailer's659shelves may have traveled on an intermodal train. Large amounts of660industrial goods, such as auto parts, are transported by intermodal661trains as well.662    Each year, railroads move more than 1.5 billion tons of freight and66328 million carloads and intermodal units nearly 1,000 miles on average664per shipment, underscoring their critical role in the U.S. economy.665However, freight railroads contribute to our Nation in many other ways666and help explain why supporting freight rail is sound public policy:667668   Safety. Safety is the top priority for railroads, and the669        industry is steadfast in its commitment to reducing accident670        frequency and severity and enhancing safety measures. While any671        train accident is one too many, data from the Federal Railroad672        Administration (FRA) indicate moving freight by rail is673        extremely safe. Between 2005 and 2024, the train accident rate674        decreased by 32 percent and the employee injury rate dropped by675        26 percent. Railroads today have lower employee injury rates676        than most other major industries, including trucking, airlines,677        agriculture, mining, manufacturing, and construction--even678        grocery stores. By these and other measures, the past decade679        has been the safest in rail history thanks to continuous680        improvements through investments in technology, infrastructure681        and training.682683   The Environment. Moving freight by rail meaningfully reduces684        greenhouse gas emissions while helping the economy. On average,685        railroads move one ton of freight nearly 500 miles per gallon686        of fuel, making them three to four times more fuel efficient687        than trucks. This means that moving freight by rail instead of688        truck reduces greenhouse gas emissions by up to 75 percent.689690   Re-Investments. Unlike trucks, barges, and airlines,691        America's privately-owned freight railroads operate692        overwhelmingly on infrastructure they own, build, maintain, and693        pay for themselves. From 1980 to 2024, America's freight694        railroads spent more than $830 billion ($1.3 trillion in695        today's dollars) of their own funds on capital expenditures and696        upkeep expenses related to locomotives, freight cars, tracks,697        bridges, tunnels and other infrastructure and equipment.698        ``Crumbling'' might describe some U.S. infrastructure, but not699        freight rail. The American Society of Civil Engineers has700        consistently recognized these achievements, awarding rail one701        of the highest grades of all American infrastructure.\2\702        Freight rail infrastructure is in better overall condition than703        ever before.704---------------------------------------------------------------------------705    \2\ See American Society of Civil Engineers, 2025 Report Card for706America's Infrastructure (available at: https://707infrastructurereportcard.org/).708709   Affordability. The affordability of freight rail saves rail710        customers billions of dollars each year, enhances the global711        competitiveness of U.S. products, and helps American consumers.712        Average rail rates (measured by inflation-adjusted revenue per713        ton-mile) were 44 percent lower in 2024 than in 1981. Millions714        of Americans work in industries that are more competitive in715        the tough global economy thanks to the affordability and716        productivity of America's freight railroads. Changes in rail717        rates over time compare extremely favorably to changes in the718        prices of goods we buy every day.719720        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]721722   Appealing Jobs. The approximately 150,000 freight rail723        employees are among America's most highly compensated workers.724        In 2023, the average U.S. Class I freight rail employee earned725        wages of $112,600 and fringe benefits of $36,300, for total726        compensation of $149,000. By contrast, the average wage per727        full-time equivalent U.S. employee in 2023 was $80,300 (71728        percent of the rail figure) and average total compensation was729        $97,200 (65 percent of the rail figure). Finally, the median730        tenure of railroad employees is 13 years, compared to 3.9 years731        for private sector workers.732733   Broad Economic Impact. Railroads drive $233.4 billion in734        total economic output. And for every $1 invested in rail735        transportation, an additional $2.50 is generated, which736        highlights the powerful ripple effect of railroads throughout737        the economy and across a multitude of sectors.\3\738---------------------------------------------------------------------------739    \3\ See Association of American Railroads, Rail Transportation and740the U.S. Economy: Fueling Growth, Trade, and Opportunity (available at:741https://www.aar.org/wp-content/uploads/2025/02/AAR-PE-Economic-Impact-742Report-2025-FINAL.pdf).743744   Fighting Highway Congestion. Because a single train can745        replace several hundred trucks, railroads reduce highway746---------------------------------------------------------------------------747        gridlock and the need to spend taxpayer dollars on highways.748749   Passenger rail. Freight railroads provide a crucial750        foundation for passenger rail. More than 70 percent of the751        miles traveled by Amtrak trains are on tracks owned by other752        railroads--mainly freight railroads. In addition, approximately753        half of America's commuter railroads operate at least partially754        on right-of-way owned by freight railroads.755Looking Ahead to Surface Transportation Reauthorization756    The rail industry respectfully suggests that a series of757overarching principles should guide surface transportation758reauthorization. Adherence to these principles would enhance our759Nation's ability to transport people and goods safely, efficiently, and760cost-effectively.7611. Improve Safety by Allowing Railroads to Innovate and Deploy Safety762        Technologies763    New technologies are changing transportation. For example,764widespread efforts are underway today to develop autonomous motor765vehicles, including autonomous trucks that would compete directly with766railroads. Autonomous vehicle technologies and other technologies767impacting transportation vary in their stage of development, presenting768challenges and opportunities that railroads must be able to address.769    This means railroads must themselves look to new technologies to770make their operations safer and more efficient. The use of technology771to improve safety and efficiency is nothing new for railroads, but it's772taken on a new urgency as transportation markets have evolved.773    The further use of emerging technologies to enhance rail safety and774operations, however, will be needlessly stunted if regulators at the775FRA and elsewhere in DOT fail to embrace technological change, or if776they lock in existing technologies and processes so that new777innovations and new technologies that could improve safety and improve778efficiency are stifled.779    For example, automated track inspection can improve detection of780defects and dramatically reduce response time leading to fewer track-781related accidents. Safety data collected from automated track782inspection programs clearly support further deployment of this783important technology. Unfortunately, due to the existing regulatory784framework, the railroad industry is prevented from using the optimal785combination of automated track inspections and manual inspections that786would yield significant safety benefits.787    As a result, this regulatory framework creates disincentives for788the development and use of emerging technologies that would ultimately789enhance rail safety and efficiency. Railroads will continue to develop790and implement new technologies, but achieving maximum benefit will791require regulatory flexibility that allows railroads to find what works792best and encourages railroads to keep investing in those technologies.7932. Provide Robust Funding For and Streamline Safety-Enhancing Grant794        Programs795    Collisions at highway-rail crossings remain a serious safety796concern. Since 2005, the grade crossing collision rate has gone down797only 4 percent despite significant investments from both the railroads798and our private sector partners over that same period. And according to799the FRA, in 2024 the 2,252 grade crossing collisions were associated800with more than 260 fatalities and 750 injuries. These accidents can801also involve significant property damage, clean-up costs, and costs802associated with motorist and train delays while the accident is803investigated and cleared. We should also remember the forgotten victims804of grade crossing accidents: train crews, who are usually helpless (and805blameless) in terms of preventing an accident but who have a front and806center view of the tragedy and must live forever with its memory. Grade807crossing incidents typically arise from factors outside railroad808control, and highway-rail crossing warning devices are there for the809benefit of motorists, not trains. Nevertheless, railroads are committed810to reducing the frequency of crossing incidents.811812[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]813814    The safest grade crossing is the crossing that is not there. That's815why the elimination of grade crossings yields the biggest safety816benefit, and why railroads strongly support the Railroad Crossing817Elimination Grant Program (RCE). This competitive grant program, run by818the FRA and created by the IIJA, provides more than $500 million per819year through 2026 to local and state governments and other public820entities for grade separation or closure, track relocation, and the821improvement or installation of grade crossing warning devices. Earlier822this year, the FRA announced the most recent RCE grants, which total823more than $1.1 billion and will fund 123 projects associated with more824than 1,000 grade crossings nationwide. Railroads commend policymakers825for creating and funding this important program and respectfully826suggest the program should be expanded to further improve grade827crossing safety.828    Additionally, Section 130 of the Surface Transportation and Uniform829Relocation Assistance Act of 1987 provides HTF money to states and830local governments to eliminate or reduce hazards at highway-rail831crossings. The Section 130 program has been retained under subsequent832legislation. Most recently, the Infrastructure Investment and Jobs Act833(IIJA) allocates $245 million in Section 130 funds each year through8342026 for installing new and upgraded warning devices and for improving835grade crossing surfaces. The program has helped prevent tens of836thousands of fatalities and injuries associated with crossing837accidents. Section 130 funding should continue at current or higher838levels.8393. Support Funding Public Entities Partnering with Host Freight840        Railroads841    The freight rail industry supports funding for grant programs that842enable the public sector, including state and local governments, to843partner with freight railroads and others to advance projects of mutual844interest that improve the overall fluidity of supply chains, reduce845highway and port congestion, improve safety, facilitate passenger rail,846and improve the quality of life for communities. To that end, the847following U.S. DOT programs should continue to be authorized at848existing or increased levels:849850   The Infrastructure for Rebuilding America (INFRA) grant851        program. INFRA funds projects that address significant852        challenges in U.S. transportation infrastructure, particularly853        highways, bridges, railroads, and ports. INFRA encourages the854        use of private investments, state and local funding, and855        innovative financing to maximize the impact of Federal dollars.856        INFRA prioritizes projects that demonstrate a significant857        regional or national impact, alignment with national and858        economic priorities, and readiness for implementation.859860   The National Infrastructure Project Assistance grant861        program. Often referred to as the ``Mega'' grant program, this862        Federal initiative is designed to support transformational863        infrastructure projects that have significant national or864        regional impact and are too large or complex to be funded by865        other Federal programs alone. Examples include large highway866        expansions, major bridge replacements, and multimodal freight867        and passenger transportation projects. Mega grants prioritize868        projects that combine Federal support with state, local, and869        private sector funding, ensuring a shared commitment.870871   The Rebuilding American Infrastructure with Sustainability872        and Equity program. Formerly known as TIGER (Transportation873        Investment Generating Economic Recovery) and later BUILD874        (Better Utilizing Investments to Leverage Development), RAISE875        is a discretionary funding initiative that provides competitive876        grants to support infrastructure projects with a focus on877        sustainability, equity, and innovation. By prioritizing878        projects that align with national and local priorities, RAISE879        contributes to the development of modern, resilient, and880        equitable transportation infrastructure across the country.881882   The Consolidated Rail Infrastructure and Safety Improvements883        (CRISI) program. CRISI grants are designed to enhance the884        safety, efficiency, and reliability of U.S. freight and885        passenger rail systems. Program goals include improving safety886        through projects that improve rail infrastructure and reduce887        accidents and fatalities; modernizing aging rail infrastructure888        to enhance reliability and capacity; supporting efficient goods889        movement; and bolstering local and regional economies. Emphasis890        is placed on projects that provide public benefits,891        particularly in rural areas and for smaller railroads.892893    These essential programs are partnerships that solve critical894transportation challenges by combining Federal and non-federal895resources for specific projects. Without these partnerships, many896projects that promise substantial public benefits (such as reduced897highway congestion or increased rail capacity for use by passenger898trains) in addition to private benefits (such as enabling faster899freight trains) are likely to be delayed or never started because none900of the involved parties can justify the full investment needed to901complete them by themselves.9024. Restore the Highway Trust Fund (HTF) to a True User-Based System903    The United States has historically relied on a user-pays system to904fund investments in highway infrastructure. Unfortunately, revenues905into the HTF have failed to keep pace with spending needs. According to906the Congressional Budget Office (CBO), balances in both the highway and907transit accounts of the HTF will be exhausted in 2028. The CBO says908that if the taxes that are currently credited to the trust fund909remained in place and if funding for highway and transit programs910increased annually at the rate of inflation, the shortfalls accumulated911in the HTF highway and transit accounts from 2024 to 2033 would total912$241 billion.\4\913---------------------------------------------------------------------------914    \4\ Testimony of Chad Shirley, Principal Analyst Microeconomic915Studies Division, Congressional Budget Office, Before the U.S. House of916Representatives Subcommittee on Highways and Transit, Committee on917Transportation and Infrastructure, October 18, 2023.918---------------------------------------------------------------------------919    This shortfall has previously been covered by transfers from the920general fund, but general fund transfers to the HTF distort the freight921transportation marketplace in favor of trucking and put other922transportation modes at an unfair competitive disadvantage. This is923especially problematic for railroads, which build, maintain, and pay924for their own infrastructure.925    Studies indicate that trucks cause the overwhelming majority of the926damage to our nation's roads and bridges as compared to other vehicles,927and the fuel taxes and other fees heavy trucks pay do not come close to928covering the costs of that damage.\5\ The taxes and fees trucks pay to929help maintain our Nation's roads and bridges have not been930substantially changed since 1993, resulting in a multi-billion-dollar931annual underpayment compared to the damage they cause.932---------------------------------------------------------------------------933    \5\ Congress should require that the Federal Highway Administration934finalize the highway cost allocation study required in the last surface935transportation reauthorization. This would provide needed precision936regarding the damage to our Nation's roadways caused by each highway937user class.938---------------------------------------------------------------------------939    Congress should remedy this modal inequity by either increasing the940fuel tax or imposing a vehicle-miles traveled fee or a weight-distance941fee for motor carriers. An appropriate user fee would be self-942sustaining; would not increase taxes or fees for non-highway943transportation modes; and would create a competitive tax environment944across modes.9455. Streamline the Environmental Permitting Process946    While efforts to cut red tape associated with infrastructure947project approval and construction have borne some fruit in recent948years, more can still be done to fast-track routine rail construction949projects without ignoring environmental or historical preservation950concerns.951    For example, policymakers could codify that, for rail projects952whose purpose is to replace existing infrastructure on existing953operating railroad right-of-way, a categorical exclusion and a finding954of no significant impact are the only NEPA documentations necessary.\6\955In addition, policymakers could convert to statute select executive956orders on streamlining the permitting process, such as timeclocks,957intermediate deadlines, and One Decision.\7\ Policymakers could also958continue to streamline the ``Section 106'' historic preservation959process for projects needed to enhance or maintain rail960infrastructure.\8\961---------------------------------------------------------------------------962    \6\ The National Environmental Policy Act (NEPA) requires Federal963agencies to assess the environmental impacts of their proposed actions964before making decisions. A categorical exclusion is a category of965actions determined not to have significant environmental impacts,966allowing them to bypass detailed reviews like Environmental Assessments967(EA) or Environmental Impact Statements (EIS). A finding of no968significant impact (FONSI) is a determination that a proposed project,969based on an EA, will not significantly impact the environment,970eliminating the need for a more detailed EIS. A FONSI ensures971environmental oversight while allowing projects with minimal impacts to972proceed efficiently.973    \7\ ``One Decision'' in the context of permitting for large974projects refers to a streamlined approach where a designated lead975agency coordinates all necessary reviews and approvals from multiple976entities to deliver a single, consolidated decision within a clear977timeframe. This method reduces duplication, ensures regulatory978certainty, and accelerates project timelines by aligning agency efforts979and eliminating conflicting requirements.980    \8\ Section 106 of the National Historic Preservation Act requires981Federal agencies to assess the impact of their projects on historic982properties. Streamlining this process means making the review and983consultation more efficient, potentially speeding up decisions without984sacrificing protections for historic sites.985---------------------------------------------------------------------------986    These approaches to environmental review would expedite projects987that would enhance supply chain fluidity while ensuring comprehensive988and effective environmental reviews are maintained. The environment989would still be protected, while supply chains would benefit from990greater efficiency and more environmentally friendly performance.9916. Oppose Policies that Harm Railroads' Ability to Operate Safely and992        Efficiently993    Railroads respectfully urge members of this committee and other994policymakers to reject policy riders to surface transportation995legislation that would hinder railroads' ability to operate safely and996efficiently.997Minimum Crew Size998    For example, policymakers should oppose proposals mandating two999crew members in freight locomotive cabs. There is no quantitative1000evidence that a two-person crew mandate would enhance safety. Moreover,1001a two-person mandate could stifle the adoption of new technologies that1002would enhance safety. Railroads aren't seeking the ability to impose1003one-person crews haphazardly or unilaterally. Rather, they seek1004flexibility to continue to work with rail labor under the existing1005collective bargaining framework--as they have for decades--to identify1006when conditions allow a reduction in the number of crewmembers without1007jeopardizing safety.1008Technology Mandates1009    Likewise, technology mandates should be avoided. Flexible,1010technology-driven solutions are preferable to rigid regulatory1011requirements. For example, advances in on-board monitoring systems and1012automated data collection are likely to be just as effective, or more1013so, in detecting potential problems without the need for fixed wayside1014detectors at prescribed distances.1015    Regulatory flexibility regarding technology allows for better1016allocation of resources, focusing on specific track conditions and1017areas with higher risks instead of adherence to arbitrary rules. More1018broadly, any new operational restrictions should be science-based and1019data-driven, designed to correct a specific problem, and incorporate1020solutions to address that deficiency as efficiently as possible.1021Otherwise, the Nation's freight supply chain would be needlessly1022weakened.1023Access to Railroad Rights-of-Way1024    Legislative or regulatory actions aimed at granting access to1025railroad rights of way to non-railroad entities, such as1026telecommunications companies, must be carefully proscribed. Safety must1027be the top priority. Railroads must have sufficient time and1028information to process applications for access, and railroads should be1029given fair and complete reimbursement, including reimbursement of any1030out-of-pocket costs associated with facilitating that access and work1031associated with it. To prevent a hodgepodge of conflicting state1032requirements, laws governing access to the right-of-way should be1033uniform across the country. Finally, the U.S. DOT, not the FCC nor any1034state or local entities, must be the primary overseer of these1035agreements.1036Truck Size and Weight Restrictions1037    Congress should reject calls to increase Federal truck size and1038weight limits until, at a minimum, trucks pay the full cost of the1039damage they cause to our roads and bridges. The multi-billion-dollar1040annual underpayment would become even greater if truck length and1041weight limits were increased. Raising truck size and weight limits1042would also artificially shift freight from rail to truck. Given rail's1043inherent environmental advantages and the many other benefits of moving1044freight by rail, imposing artificial impediments to rail, such as1045increasing Federal truck size and weight limits, is not sound policy.1046Marijuana Reclassification1047    Finally, as the Drug Enforcement Agency continues to analyze a1048proposal to reschedule marijuana from a Schedule I to a Schedule III1049drug, Congress should ensure that employers whose employees conduct1050safety-sensitive activities each day, like the railroads, maintain the1051ability to drug test employees for marijuana usage and treat positive1052tests as proof of unacceptable employee conduct.1053Conclusion1054    America's freight railroads are a vital national resource. With1055highway congestion becoming more acute and with public pressure growing1056to combat climate change, conserve fuel, and promote safety, railroads1057are well positioned to take on a larger role in meeting these1058challenges, given their substantial advantages in these areas over1059other transportation modes. Demands for use of freight-owned track by1060passenger trains are mounting and will probably continue to grow. And,1061of course, as our economy evolves, railroads will continue to be called1062upon to make additional investments in their networks to provide the1063efficient, reliable, and cost-effective freight transportation service1064that their customers, and our nation, need to prosper.1065    For that to happen, members of this committee and others must craft1066appropriate policies. Freight railroads stand ready to work with you to1067ensure that our Nation's transportation needs are met in a responsible,1068environmentally sound, and safe manner.10691070    Senator Young. Well, thank you, Mr. Jefferies. Mr.1071Gilbertson, you are recognized for 5 minutes.10721073            STATEMENT OF PETER GILBERTSON, PRESIDENT1074     AND CHIEF EXECUTIVE OFFICER, ANACOSTIA RAIL HOLDINGS1075            COMPANY; AND MEMBER, AMERICAN SHORT LINE1076               AND REGIONAL RAILROAD ASSOCIATION10771078    Mr. Gilbertson. Thank you, Chairman Young. and thank you1079Senator Peters and Moreno. It is--happy to be here. I am Peter1080Gilbertson, President and CEO of Anacostia Rail Holdings. We1081operate six short line railroads in seven states, including1082Indiana, and Minnesota, and Illinois.1083    I am appearing on behalf of the American Short Line and1084Regional Railroad Association which represents 603 Class II and1085III railroads. Together, these railroads operate 50,000 miles1086of track, or about 30 percent of the national network. They1087operate in 49 states. And the one that we don't operate in is1088Hawaii. We would be interested in operating in there if there1089is any opportunity.1090    We are the industry's growth engine. Short lines are1091entrepreneurial small businesses. The typical short line1092employs about 30 people, operates about 80 miles, and earns1093about $8 million in annual revenue. Our significance, though,1094is not our size, but who and where we serve. We serve rural1095America. We serve ports. We serve defense facilities. We serve1096underserved areas.1097    We are the first and last mile in many cases. In this role,1098we face some unique challenges, aging infrastructure, limited1099revenue, complex regulatory requirements, constrained access to1100capital.1101    My written testimony covers three areas that address these1102challenges, continued and robust, predictable Federal1103infrastructure financing, regulatory reform that is data and1104risk driven and not prescriptive, and then finally support for1105innovation and new technologies through streamlined testing,1106waivers, and investment. Most short lines operate over track1107that was headed for abandonment before their time. And because1108of that, they understandably receive little or no capital1109investment.1110    So there is a lot of deferred maintenance in the network we1111operate. We have to invest on average about 30 percent of our1112annual revenue in maintaining and rehabilitating our1113infrastructure, which makes short lines one of the most capital1114intensive industries in the country.1115    The CRISI program of the USDOT FRA is the only Federal1116program that allows direct access to capital for short line1117infrastructure improvements. It has been very successful. Of1118the 240 CRISI awards made to date, over $2.7 billion has gone1119to projects benefiting short lines. In the 2023, 2024 round,1120short lines received 81 out of 122 awards.1121    These were matched by private investment, non-Federal1122investment, from 20 percent to 80 percent of the total project1123cost. So this leverages funds into the infrastructure of the1124United States beyond just the Federal investment. We encourage1125you to extend the program on the next Surface Transportation1126Reauthorization, and my testimony makes several recommendations1127to improve the program.1128    Two are particularly important. One is advanced1129appropriations, because it permits us to plan. Second, while we1130commend the FRA staff for processing these things, there has1131been delays between the announcement of the grant and the1132actual funding of the program. And the process actually1133includes a grant agreement as part of the application.1134    So we think there is opportunities to substantially shorten1135that period. Safety is the next thing I want to touch on. It is1136a fundamental value to us. Our employees and the communities we1137serve are crucial to us, and it is a fundamentally value. But1138we believe FRA could take some specific actions to reduce the1139regulatory burden.1140    My colleague has addressed some of these things, but I will1141give an example. The FRA signal and employee dispatcher1142certification regulations had cost benefit ratios of 8 to 1,1143and 3 to 1, respectively. In other words, the cost exceeded1144benefits, and this was by FRA's own calculations.1145    This is the kind of thing that we think we can have a more1146creative approach to our safety objectives. Finally, we have an1147old industry here. It is 150 years old, and we must embrace1148innovation. There are significant opportunities to improve what1149we are doing in technology. And I will give you one example1150that I think is germane, both to CRISI, but also some of the1151technology that is occurring.1152    We, one of our railroads, Louisville and Indiana, between1153Indianapolis and Louisville, Kentucky, has been developing,1154with the assistance of CRISI and our own funds, an app that1155permits us to talk to first responders and show first1156responders if there is a grade crossing incident, exactly where1157it is occurring, so that there isn't confusion about responding1158quickly.1159    Once we complete that and we are very close to that, we1160will share that with other railroads in the United States. This1161is an example of--and obviously, we are not developing the app.1162We are working with others to develop it. But it is the kind of1163entrepreneurship I think you see in short lines.1164    There is a problem. Let's step up and try to fix it. And1165the Federal funds have been crucial to that. So, I thank you1166for the opportunity to speak and look forward to any questions.1167    [The prepared statement of Mr. Gilbertson follows:]11681169 Prepared Statement of Peter Gilbertson, President and Chief Executive1170  Officer, Anacostia Rail Holdings Company and Member, American Short1171                 Line and Regional Railroad Association1172Introduction1173    Chairman, Ranking Member, and Members of the Subcommittee:11741175    Thank you for the opportunity to testify as you examine ways to1176modernize our freight and passenger rail networks. My name is Peter1177Gilbertson, President and CEO of Anacostia Rail Holdings and a member1178of the American Short Line and Regional Railroad Association (ASLRRA).1179Our company operates six short line railroads, employing over 4001180people and connecting 300 customers in 270 communities in six states.1181Our railroads serve rural areas as well as the three largest cities in1182the United States. We serve military facilities and ports. We are proud1183to help retain and grow manufacturing and agriculture in the U.S. We1184are an industry leader in innovation.1185    I'm here today to speak for the over 600 small business railroads1186that form the backbone of freight rail in rural and small-town America.1187Together, these railroads operate 30 percent of the national network,1188providing &first- and last-mile service to over 10,000 shippers.1189    This testimony centers on three pillars critical to modernizing and1190sustaining America's short line freight railroads:11911192  1.  Robust and predictable Federal infrastructure funding, especially1193        through the Consolidated Rail Infrastructure and Safety1194        Improvements (CRISI) grant program.11951196  2.  Regulatory reform that is data-and risk-driven, not prescriptive.11971198  3.  Support for innovation and new technologies, through streamlined1199        testing, waivers, and investment.12001201    These themes are interwoven with a simple truth: if short lines1202succeed, America's supply chain is stronger, safer, and more resilient.1203The Short Line Freight Railroad Industry12041205[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]12061207    As you will note from the map above, almost every Member of this1208Subcommittee has one or more short lines operating in their state, and1209in many cases these short lines are one of the significant businesses1210in their towns. More importantly, small railroads help retain and1211attract jobs of their customers.1212    But despite their critical role, short lines face steep economic1213and regulatory challenges. Most operate on infrastructure that is1214decades old and must overcome disproportionately high capital costs1215with limited revenue. That is why strong Congressional support--for1216targeted infrastructure programs like CRISI, for smart regulatory1217reform, and for flexible policies that foster innovation--is essential.1218Without it, the small railroads that power America's heartland risk1219falling behind in meeting the demands of a modern economy.1220The CRISI Program: A Cornerstone of Short Line Growth and Viability1221    Short lines were born out of necessity after the Staggers Rail Act1222of 1980, which transferred neglected large Class I branch lines that1223were otherwise headed for abandonment to local operators who believed1224in their potential. Since then, short lines have proven to be1225resilient, entrepreneurial businesses that reinvest heavily--up to one-1226third of revenue annually--into maintenance and upgrades.1227Rehabilitating and operating these lines are enormously capital-1228intensive. As an example, Anacostia has invested over $30 million into1229our infrastructure for routine maintenance--and that does not include1230major infrastructure projects.1231    The CRISI program, created in 2015, is the only Federal program1232that allows direct access to capital for short line infrastructure1233improvements. Anacostia Rail Holdings has received CRISI grants for1234several projects, including:12351236  1.  FRA CRISI FY 2018 PTC1237    New York & Atlantic Railway (NYA) positive train control (PTC)1238        Implementation Project1239    $1,011,1181240    This project involved the installation of PTC onboard 10 NYA1241        locomotives as well as support training and testing for its1242        operations on rail lines shared with the Long Island Railroad1243        in Long Island, NY.1244  2.  FRA CRISI FY 2018 PTC1245    Chicago South Shore & South Bend Railroad (CSS) PTC Implementation1246        Project1247    $720,0001248    This project also supported PTC installation, testing, and training1249        as well as interoperability between CSS and the Northern1250        Indiana Commuter Transportation District (NICTD). CSS and NICTD1251        share a joint freight-commuter corridor from Chicago, IL, to1252        South Bend, IN.1253  3.  FRA CRISI FY 20181254    Developing and Implementing a Mobile Device Emergency Responder1255        Access Application for the Louisville & Indiana Railroad1256        Company (LIRC)1257    $335,3611258    This project supports the development of a geographic information1259        system mobile application for the Louisville and Indiana1260        Railroad Company with software, linking railroad dispatch and1261        first responders, aiding communication, and response during1262        railroad incidents. The project is in cooperation with ASLRRA1263        and the Short Line Safety Institute (SLSI) and when complete1264        the mobile application will be made available to other1265        railroads.1266  4.  FRA CRISI FY 20181267    Chicago South Shore & South Bend Rail Rehabilitation and Safety1268        Improvement Project1269    $2,831,7051270    This project involved upgrading a line between Michigan City and La1271        Porte, Indiana by replacing 100-year-old, 90-pound rail track1272        with 115-pound rail. Also included was the upgrade of an1273        existing rail crossing north of Highway 35 in Michigan City,1274        ensuring compatibility with the new track.1275  5.  FRA CRISI FY 20181276    New York & Atlantic Track Realignment and Rehabilitation Project1277    $368,6791278    The project involved construction of 650 feet of new track on an1279        improved alignment and connection to reduce the severity of a1280        curve in Fresh Pond, Queens, New York.1281  6.  FRA CRISI FY 20221282    Louisville & Indiana Railroad Company Safety, Sustainability, and1283        Alternative Energy Project1284    $2,685,6001285    The project included final design and construction activities for1286        various track-related improvements, upgrades to certain grade1287        crossings, and solar panel installation at certain rail1288        facilities. LIRC and the Indiana Department of Transportation1289        provided a 52 percent non-Federal match.1290  7.  FRA CRISI FY 2023-20241291    Louisville & Indiana Railroad Clagg Bridge Lift Span Operations1292        Project1293    $6,492,0001294    The project will complete sheave, trunnion, and bearing replacement1295        on the Fourteenth Street Bridge over the Ohio River, connecting1296        Louisville, Kentucky, and Clarksville, Indiana. Replacement of1297        these assemblies has become necessary due to the age of the1298        existing components and to replace a failing piece of1299        equipment. The bridge is over 100 years old. This project is1300        expected to increase the lifespan of the existing structure by1301        a minimum of 50 years. The bridge is used by both LIRC and CSX1302        and both companies are contributing funding.13031304    For each project, Anacostia railroads contributed at least 201305percent of the total project costs. These projects, along with many1306others nationwide, yield six key benefits:13071308  1.  Addressing Critical Infrastructure Needs--CRISI enables critical1309        projects, such as bridge replacements, or track upgrades that1310        remove bottlenecks and allow carriage of industry-standard1311        286,000-pound railcars, improving interoperability and1312        competitiveness.13131314  2.  Improving Safety--Rail safety directly benefits from sound1315        infrastructure. CRISI funds replace worn-out crossties and1316        steel rails, reducing the risk of derailments and making rail1317        service safer for employees and communities alike.13181319  3.  Creating and Sustaining Jobs--Short line rehabilitation projects1320        are labor-intensive and rely on local contractors. These1321        projects support good-paying jobs in rural communities and1322        generate long-term employment through freight rail service1323        expansion and improvement.13241325  4.  Enhancing Environmental Outcomes--For healthy communities, rail1326        is the most fuel-efficient mode of freight transport. CRISI-1327        funded upgrades facilitate modal shift from truck to rail,1328        which reduces highway congestion and air pollution.13291330  5.  Promoting Economic Development--CRISI investments enable service1331        to new and growing businesses and attract additional shippers1332        and manufacturers to the community.13331334  6.  Improving Service for Customers--Even small improvements--such as1335        a short stretch of new track or the elimination of a chronic1336        derailment risk--can make an enormous difference in the1337        transportation costs and competitiveness of shippers. Reshoring1338        of manufacturing to the U.S. requires a strong rail freight1339        network.13401341    Of the 240 CRISI awards made to date, over $2.7 billion has gone to1342projects benefiting short lines. In the most recent combined FY23-241343round, short lines received 81 out of 122 awards--over $1.2 billion in1344funding. These awards were matched by local and private investments1345ranging from 20 percent to as much as 80 percent, demonstrating that1346CRISI leverages public dollars effectively and attracts private capital1347that otherwise would not be invested.1348    Additional examples of short line projects that CRISI has1349supported, and the project's impact are attached to this testimony in1350an Addendum.1351The Importance of Predictable and Robust Funding1352    The advance appropriations provided for CRISI through the previous1353surface transportation law--$1 billion annually through FY 2026--have1354been transformational. Predictable funding allows small businesses to1355plan ahead, secure match funding, and complete upfront engineering work1356required for competitive applications. Without advance appropriations,1357many short lines would be unable to pursue these grants due to the1358uncertainty and high upfront costs involved, and CRISI funds would be1359less effectively spent.1360    The merit-based approach for awarding CRISI grant funds has proven1361to be accessible to short lines. Over the life of the program, and1362across Administrations, this approach has resulted in a generally1363equitable national distribution of funding while providing the U.S.1364Department of Transportation with important flexibility to address a1365very diverse array of types and scale of freight rail investment needs.1366    It is essential that the next surface transportation1367reauthorization not only extends CRISI but also preserves the advance1368appropriations structure. Without it, Federal investment becomes less1369effective, fewer projects move forward, and the communities that rely1370on short lines are left behind.1371CRISI Grant Award Process Recommendations1372    The CRISI program has proven to be powerful, effective, and broadly1373supported on a bipartisan basis. However, there are clear opportunities1374to improve the grant process. Delays between award announcements and1375actual construction, as well as obstacles to making necessary project1376adjustments as conditions evolve, significantly reduce the1377effectiveness of CRISI funding--not just for railroads like ours, but1378for the shippers and communities that rely on us.1379    Short lines are ready to get to work. By the time we apply for1380CRISI grants, we have already invested limited financial resources--1381along with substantial personnel resources--just to be able to compete1382effectively for funding.1383    Our shippers, who rely on us for critical access to domestic and1384international markets, are eager to see safer, more efficient rail1385service become a reality. Delays in grant funding delay the hoped-for1386improvements and business opportunities.1387    And the communities we serve--where local expertise is often1388employed to conduct these projects--are waiting to realize the economic1389benefits that come with upgraded infrastructure: new business1390investment, expanded manufacturing, and job creation.1391    To maximize the impact of the CRISI program, we must address these1392systemic delays. Streamlining implementation and allowing for greater1393flexibility in project management will ensure that Federal dollars1394translate more quickly and effectively into real-world benefits.1395    Here are our recommendations on how the CRISI program can be1396further improved, and made even more impactful:13971398   Protect CRISI's Ability to Bolster the Freight Rail1399        Network--ASLRRA discourages set-asides within CRISI for1400        passenger rail projects or expansions of the program to include1401        major new eligible applicants, such as commuter railroads. With1402        so many challenges facing our freight supply chain, short lines1403        need to remain viable competitors for these limited funds.1404        While we have no opposition to passenger rail, there are other1405        Federal grant programs that provide passenger rail applicants1406        with funding levels that dwarf CRISI. Moreover, some short line1407        CRISI projects benefit passenger rail.14081409   Speed--CRISI projects should move from announcement to1410        obligation to completion faster than they currently do.1411        Currently, CRISI some projects are delayed by 12-18 months.1412        Most short line projects are quite simple in the context of1413        infrastructure investments. Compressing the timeline would1414        result in better outcomes for the public, for short lines, for1415        communities, and for shippers with no additional risk, and1416        would help avoid the significant cost escalation associated1417        with delay.14181419   Encourage the use of pre-award authority (PAA)--More1420        extensive use of PAA would allow CRISI grant awards for small1421        railroad infrastructure projects to move more quickly and1422        efficiently. PAA authorizes grant recipients to begin their1423        projects immediately at their own risk rather than being stuck1424        in limbo during the often-lengthy Federal approval process,1425        including environmental and historic reviews. Nearly all short1426        line projects that receive CRISI awards are found to create no1427        significant impacts on the environment that would require1428        mitigation as a condition of award. The agency should consider1429        more routinely authorizing PAA for non-ground disturbing1430        elements of short line project scope such as for engineering1431        analyses, locomotive investments, and acquisition of1432        construction materials like crossties and rail. Prompt1433        acquisition of materials can be a particularly useful step to1434        mitigate project cost inflation risk. Delays in completing1435        engineering and design work correspondingly delay entry into1436        the construction phase of a project.14371438   Increase Transparency across the Grant Lifecycle to Enable1439        Benchmarking and Process Improvement--Congress could require1440        that FRA file regular standardized reports on the status of1441        processing grants to the transportation authorizing and1442        appropriating committees. These reports could document the1443        status of major common milestones from award notification1444        through grant obligation to project closeout. This data will1445        help stakeholders understand how long it takes the agency to1446        move through the process for each award to achieve grant1447        obligation and begin work. It will also create some beneficial1448        pressure encouraging the agency to innovate to move the process1449        faster.14501451   Optimize grant application processes and program1452        accessibility--FRA should consider a mechanism to share basic1453        data on the pool of applications received each cycle with1454        ASLRRA for analysis. This high-level information (such as1455        applicant, requested award and total project cost) is publicly1456        shared for DOT grant programs like RAISE/BUILD that have only1457        public applicants, but not for CRISI. ASLRRA could work1458        directly with FRA under an information sharing agreement to1459        enable better analysis of what parts of the short line1460        population are either not applying for CRISI grants or not1461        applying successfully. Such collaboration could help the agency1462        and the association to work together better to improve outreach1463        to ensure the CRISI program is broadly accessible, especially1464        to the smallest railroads.14651466   Improve Notices of Funding Opportunity (NOFO) and the1467        application review process--Past NOFOs included requirements1468        beyond those in the program statute in the section on1469        ``administrative and national policy requirements.'' These1470        requirements caused confusion among applicants as to how their1471        applications would be reviewed and what project implementation1472        steps they would need to take. FRA should carefully review1473        these requirements as they revise their standard NOFO text and1474        strike requirements conditioning grant agreement execution on1475        policies that are not required by the grant program statute.14761477   Improve Elements of the NEPA Process--Railroads are an1478        environmentally friendly way to move goods. We encourage1479        efforts to ensure NEPA requirements reflect this sustainable1480        way to move freight and do not undermine it. Specifically, we1481        believe there could be room within USDOT's NEPA implementing1482        regulations to expand definitions of selected categorical1483        exclusions (CEs) without risking significant environmental1484        impacts. Systematically bundling and front-loading projects1485        that are likely to be CEs for expedited and early review and1486        approval is an approach that could speed up the overall1487        processing of awards. ASLRRA looks forward to the updating of1488        regulatory and policy frameworks at DOT that should reduce the1489        delay risk of NEPA and other statutorily required reviews,1490        particularly those made in accordance with recent Supreme Court1491        decisions.14921493   Grant Adjustment Request Form Process--The Grant Adjustment1494        Request Form (GARF) process is a procedure used by grant1495        recipients to request changes to the terms of a grant. These1496        changes might include things like:14971498     Budget modifications  (e.g., moving funds between1499            categories)15001501     Time extensions for completing the project.15021503     Scope changes to alter what the grant is funding.15041505     Key personnel changes or other administrative updates15061507    We recommend continuing effort at streamlining the steps, improving1508        communication, and aligning requirements with real-world1509        project conditions. We are encouraged by DOT's recent efforts1510        to develop grant agreements with the flexibility to enable1511        minor adjustments within projects such that GARFs are less1512        frequently needed.15131514   Coordinate Section 106 Reviews--FRA can reduce delays by1515        coordinating with DOT's Office of the Secretary of1516        Transportation (OST) and the White House to expedite the1517        Advisory Council on Historic Preservation's acceptance of the1518        final Section 106 exemption of railroad rights-of-way (ROW)1519        from review under Section 106 of the National Historic1520        Preservation Act. Unnecessary Section 106 reviews can introduce1521        serious delays into the grant obligation process.1522Continued Federal Support for Grade Crossing Safety Issues1523    Continue to fund Operation Lifesaver (OLI), Section 130, and the1524Rail Crossing Elimination (RCE) program to protect the public. By far1525the most significant concerns with rail safety are related to1526interactions with the public at grade crossing accidents and trespasser1527issues. Operation Lifesaver is an industry- and government-supported1528effort which focuses on educating the public both about the importance1529of staying off railroad tracks and the need for passenger and1530commercial vehicle drivers to exercise caution at grade crossings. The1531Federal government has been an important participant in these efforts,1532largely through the FHWA Railway-Highway Crossings Program, known1533widely as the ``Section 130'' program. This program significantly1534improves grade crossing safety by providing funding to improve grade1535crossing protection equipment. More recently, the Rail Crossing1536Elimination program has also been successful in providing options for1537communities to close unnecessary crossings. We recommend that Congress1538continue to fund the OLI, RCE, and Section 130 programs at robust and1539guaranteed levels.1540Short Line Safety Institute1541    Safety culture has been identified as a top priority for the short1542line and regional railroad industry.1543    The goal of the Short Line Safety Institute (SLSI) and its programs1544is for the short line and regional railroad industry to perform at an1545increasingly high level of safety because of a focus not only on1546compliance, but on safety culture, defined as the shared values,1547actions, and behaviors that demonstrate a commitment to safety over1548competing goals and demands.1549    With congressional funding, SLSI functions to (a) conduct on-site1550assessments of safety culture, and (b) provide safety education and1551training for managers and employees of short line and regional1552railroads as well as tourist, historic, commuter and passenger1553railroads. Our company has an ongoing commitment to avail itself of the1554services of SLSI--because it works.1555    We urge Congress to continue Federal support for SLSI. SLSI helps1556build a stronger, more sustainable safety culture through safety1557culture assessments, training, and education--including the safe1558transportation of energy products and hazardous materials--outreach1559activities, and research.1560Transformational Regulatory Change1561    While changes to the specific regulatory actions in the sections1562above would provide meaningful regulatory relief to short line1563railroads, in accordance with EO 14192, there is another,1564transformational regulatory approach that DOT should consider--the Risk1565Reduction Program Congressional mandate, which provides the foundation1566for regulatory reform and innovation.1567    In 2008, Congress directed the Secretary of Transportation to issue1568a regulation requiring certain railroads to develop a Risk Reduction1569Program (RRP).\1\ Pursuant to the statute, each railroad's RRP must1570systematically evaluate safety risks on the railroad's system and1571create a plan to manage those risks to reduce the consequences and1572rates of railroad accidents, incidents, injuries, and fatalities.\2\1573---------------------------------------------------------------------------1574    \1\ Rail Safety Improvement Act of 2008, Public Law 110-432, 1221575Stat. 4854 (Oct. 16, 2008); codified at 49 U.S.C. Sec. 20156.1576    \2\ 49 U.S.C. Sec. 20156(a)(1)(A).1577---------------------------------------------------------------------------1578    In its RRP, a railroad is to conduct a risk-based hazard analysis1579to identify and analyze factors that affect railroad safety, including:1580operating rules and practices, infrastructure, equipment, employee1581staffing levels and schedules, management structure, and employee1582training.\3\ Further, Congress mandated that each railroad's RRP1583include a technology implementation plan and a fatigue management1584plan.\4\1585---------------------------------------------------------------------------1586    \3\ 49 U.S.C. Sec. 20156(c).1587    \4\ 49 U.S.C. Sec. 20156(d)(2).1588---------------------------------------------------------------------------1589    The RRP statutory mandate is an alternative, comprehensive approach1590to managing railroad safety. By systematically and comprehensively1591evaluating all safety risks to the railroad, a railroad will reduce1592risk and improve safety, including through the use of new technology1593not yet contemplated or allowed by existing regulations. Following this1594risk-based and analytical approach renders the prescriptive regulations1595currently in the Code of Federal Regulations as redundant, costly, and1596completely unnecessary. In short, such a risk-based approach provides1597an alternative, safety-enhancing and cost-efficient means for railroads1598to comply with FRA safety requirements.1599    FRA issued comprehensive regulations mandating RRPs for certain1600railroads on February 18, 2020.\5\ Industry comments filed in1601connection with that rulemaking encouraged FRA to build on the RRP1602approach as an alternative means to compliance with FRA safety1603regulations, allowing risk-based analysis to supplant prescription1604regulatory programs.\6\1605---------------------------------------------------------------------------1606    \5\ 85 Fed. Reg. 9,262 (Feb. 18, 2020).1607    \6\ See Supplemental Comments of the Association of American1608Railroads, Docket No. FRA-2009-0038. Oct. 31, 2018.1609---------------------------------------------------------------------------1610    In those comments, the rail industry proposed changes to the1611existing RRP regulations that would provide a railroad with a pathway1612of proposing the basis and timeline for implementing technology or1613processes that would provide a superior mitigation of hazards and the1614identified resulting risks in lieu of specifically-identified Federal1615railroad safety standard requirements. Subsequently, FRA approval of an1616RRP plan would operate as an exemption or waiver of the identified1617regulations.\7\ While ASLRRA has outstanding concerns regarding some1618nuances of the current RRP regulations, overall, ASLRRA is supportive1619of the RRP, especially in light of the industry comments, as an1620alternative to the existing prescriptive and costly Federal regulations1621and encourages FRA to consider such an approach.\8\ Congress should1622support changes to the RRP to facilitate that concept.1623---------------------------------------------------------------------------1624    \7\ Id. at 4.1625    \8\ See ASLRRA's joint comments with the National Railroad1626Construction and Maintenance Association at Docket No. FRA-2021-0035-16270004.1628---------------------------------------------------------------------------1629    This proposed transformational change would also address the1630numerous instances in FRA safety regulations where the agency has taken1631a performance-based directive in a Congressional mandate and expanded1632it to a very prescriptive end product. While there are numerous1633examples here that could be cited, short line railroads are1634particularly impacted by the Training, Qualification, and Oversight for1635Safety-Related Railroad Employees rule at 49 C.F.R. Part 243. This rule1636takes the statutory mandate from the Rail Safety Improvement Act of16372008, codified at 49 U.S.C. Sec. 20162 to establish minimum training1638standards for safety-related railroad employees and expands it into1639cumbersome, unwieldy regulations that places extremely prescriptive and1640unnecessary burdens on small businesses.\9\ These types of regulations1641do not improve safety and serve merely to add burden to and require1642additional resources from FRA. FRA can reduce unnecessary regulatory1643burden on the rail industry and itself by deploying the RRP rule as an1644alternative to the prescriptive regulations that exceed statutory1645mandate.1646---------------------------------------------------------------------------1647    \9\ An example would be the regulatory requirement for three-year1648refresher training at 49 C.F.R. Sec. 243.201(e), which is not required1649in the statute nor proven to serve a safety purpose.1650---------------------------------------------------------------------------1651Innovation in Railroad Technology1652    As our Nation works to modernize infrastructure and strengthen1653supply chains, the more than a century old freight rail industry in1654fact stands at the forefront of innovation.1655    Advances in rail technology are driving safer, more efficient, and1656more sustainable transportation solutions. From automated track1657inspection to predictive maintenance and low-emission locomotives,1658these innovations are not only enhancing operations but also supporting1659broader national goals--reducing emissions, driving economic growth,1660improving safety, and connecting communities. Continued investment and1661regulatory flexibility are essential to unlock the full potential of1662these technologies and ensure that America's rail network remains a1663global leader in 21st-century transportation.1664    Congress can help railroads test and deploy new technologies by1665streamlining waiver acquisition. Railroads have shown their commitment1666to developing, testing, and deploying new technologies that improve1667safety and enhance fluidity of the supply chain of their operations.1668Policymakers should offer industries--including freight rail--1669operational and regulatory flexibility to encourage further innovation.1670This needed flexibility could cover everything from technologies and1671procedures to increase fuel efficiency to new technologies that require1672extensive testing and research. Flexibility and streamlining are1673necessary to empower the rail industry to explore these options. For1674example, policymakers should consider streamlining waiver review1675timelines, encouraging pilot programs, and establishing performance-1676based thresholds.1677    As with most industries, the promise of technology in the rail1678industry is significant, especially since today's rail industry data1679systems and customer tools can be at times considered antiquated and1680disparate across the industry.1681    One example of promising technical innovation is RailPulse.1682RailPulse is an industrywide telemetry platform that brings real-time1683data and digital visibility to North America's freight rail fleet.1684Founded in 2020 by a coalition of rail industry partners, including1685small railroad firms Iowa Interstate, Genesee & Wyoming and Watco--to1686create a vendor-neutral, open-architecture telematics ecosystem.1687Development of the platform was aided by a $7.9M FY 2020 CRISI grant to1688help develop the railcar onboard GPS sensor system to provide real-time1689information on railcar movements and condition to shippers, car owners,1690and railroads.1691    The official RailPulse platform launch occurred on September 3,16922024, following pilot programs and platform development and in February16932025, Anacostia joined this consortium. This technology has allowed1694industry to address shipment and railcar visibility, offer enhanced1695safety, improve the shipper experience, lower operational costs and1696more. We believe this type of public-private partnership should1697continue.1698    Additionally, in February, two of ASLRRA's members, the Heart of1699Georgia Railroad and Georgia Central Railway, received approval from1700FRA to begin the field operational testing of a system for1701transportation of freight containers on autonomous rail bogies,1702developed by Parallel Systems. The program aims to evaluate the1703effectiveness of the system, show that it can safely run alongside1704conventional equipment, and demonstrate the short-haul movement of1705intermodal containers.1706    With regards to improving the efficiency and emissions of1707locomotives, Anacostia and several other ASLRRA members are currently1708deeply engaged in several studies and demonstration projects that will1709help introduce more innovations to our industry, including1710demonstrating options for battery-electric locomotives and use of1711alternative fuels. These efforts are largely limited to yard activities1712and short haul efforts, as at-scale long-distance, heavy-haul efforts1713are not yet feasible. We ask that Congress continue to partner with our1714industry to advance innovative locomotive propulsion technologies,1715while at the same time not mandating the use of technologies that are1716not yet mature, or readily (commercially) or affordably available.1717Technology Advancing Employee Training: Learning Management System Uses1718        Modern Technologies to Train Remotely1719    Short lines are using technology for employee safety training and1720utilizing new training methods such as virtual reality and simulation.1721In the FY 2020 CRISI cycle, the Iowa Northern Railway Company (IANR)1722received a $5.4M grant to provide for the development and deployment of1723computer-based training courses delivered via a Learning Management1724System (LMS) as well as in-person training courses offered at the1725IANR's Training Center, located in Waterloo, Iowa, at the small1726railroad's location, or another remote location. This allows short1727lines to provide training when and where it is needed, rather than1728sending employees to offsite training, or pausing operations to1729facilitate training.1730    The LMS is an online platform/hub, accessible 24-7 to deliver and1731track industry-specific training and assessments, including cutting-1732edge virtual reality and interactive online coursework, employee OJT1733and instructor-led training recordings.1734    In addition to the LMS platform, a Mobile Technical Training Center1735equipped with two FRA Type II locomotive simulators plus classroom1736space for six students and an instructor, and can deliver personalized,1737instructor-led seminars and locomotive simulator training on location1738anywhere in the continental US. The simulators feature dozens of1739generic profiles to match all types of railroad topography can run1740engineers on simulations that closely resemble railroad's territory,1741enabling railroads to meet a wide range of training & regulatory1742requirements, including basic train handling, positive train control,1743distributed power operations, Part 240 annual check rides, and1744certification skill performance evaluations.1745    As of June 2025, nearly 1,100 employees from 24 short line1746railroads are actively receiving training via the LMS, while more than1747150 employees from 19 railroads in 12 states have participated in1748locomotive simulator and mobile classroom training delivered via the1749mobile technical training center.1750Deploying Digital Onboard Systems to Monitor Locomotives1751    Short lines are welcoming and deploying technologies that will1752allow for proactive maintenance, and operational/scheduling1753adjustments. In the FY 2023/2024 CRISI Grant Cycle, ASLRRA was awarded1754$20.5 million in CRISI funding to support the installation of digital1755on-board systems on over 600 short line locomotives all around the1756country. Most short lines are equipped with older locomotives, acquired1757second-hand, sometimes 50 years old or even more. These on-board1758systems will enable these locomotives to be equipped with state-of-the-1759art features like location tracking, condition health and energy use1760monitoring, and safety features like forward and rear-facing cameras1761and event recorders. The cloud back-ends for these systems will enable1762short line workers and managers to run their trains with many of the1763same operational awareness and analytics features previously only1764available to the large Class I railroads. We are pleased to note that1765FRA is proceeding expeditiously with the review and approval process1766for this grant.1767    Allowing exploration of emerging technologies and investing in1768innovation for short line railroads isn't just about modernization,1769it's about keeping freight moving efficiently, safely, and sustainably1770in the face of 21st-century challenges. It's a strategic necessity for1771a resilient transportation system.1772Conclusion1773    In conclusion, short lines are high-impact investments in1774underserved areas. They are job creators, safety multipliers, and1775sustainability drivers. But to remain viable and competitive, we need:17761777  1.  Reliable, accessible infrastructure funding, with CRISI at its1778        core.17791780  2.  A modern regulatory approach rooted in performance, not outdated1781        prescriptions.17821783  3.  Flexibility to innovate, test, and deploy new technologies--1784        safely and efficiently.17851786    Congress's continued support of CRISI, Operation Lifesaver, Section1787130, and the Rail Crossing Elimination program is essential to our1788success. Just as critical is the adoption of a regulatory mindset that1789prioritizes outcomes over paperwork and embraces innovation as a path1790to safety.1791    Investing in short lines is more than a rail policy--it's an1792economic policy, a safety policy, and a supply chain policy.1793    Thank you for your leadership and for supporting the short lines1794and the communities we serve. I look forward to your questions.17951796                                APPENDIX17971798               Short Line Railroad CRISI Project Examples17991800Louisville & Indiana Railroad Clagg Bridge Lift Span Operations Project18011802Awardee:                 Louisville & Indiana Railroad Company (LIRC)1803CRISI Grant:             $6,492,0001804Local Match:             $6,492,000 (50 percent)1805Total Project Cost:      $12,984,0001806Senator/State:           Senators Todd Young (R-IN) and Jim Banks (R-1807                          IN), Senators Mitch McConnell (R-KY) and Rand1808                          Paul (R-KY)18091810    This project will complete sheave, trunnion, and bearing1811replacements on the Fourteenth Street Bridge over the Ohio River,1812connecting Louisville, Kentucky, and Clarksville, Indiana at1813Replacement of these assemblies has become necessary due to the age of1814the existing components and to replace a failing piece of equipment.1815The bridge is over 100 years old, and this project will increase the1816lifespan of the existing structure by a minimum of 50 years.18171818    ``Ports of Indiana is fully supportive of the project and is1819confident that it will have a dramatic impact on improving the long-1820term safety and efficiency of the railroad's operation. As a statewide1821port authority, Ports of Indiana depends on robust infrastructure1822connections by rail, road, river, and the Great Lakes. LIRC provides1823critical rail service to our Jeffersonville port and many other1824industries in the area. LIRC's operations are vital to Indiana's1825economy, and we strongly support its effort to secure funding for this1826important project.''--Jody Peacock, Chief Executive Officer, Ports of1827Indiana18281829Chicago South Shore & South Bend Rail Rehabilitation and Safety1830 Improvement Project18311832Awardee:                 Chicago South Shore & South Bend Railroad (CSS)1833CRISI Grant:             $2,831,7051834Local Match:             $707,926 (20 percent)1835Total Project Cost:      $3,539,6311836Senator/State:           Senators Todd Young (R-IN) and Jim Banks (R-IN)18371838    This project replaced 7.5 miles of 90-pound rail with 115-pound1839rail on the Kingsbury Industrial Lead, improving safety associated with1840the heavier rail, and increasing train speed on a new section of track1841to improve car cycle times for customers.18421843    ``The CRISI project being done by CSS shows a commitment to safety1844and the growth of CSS customers located between Michigan City and1845Kingsbury. My company truly appreciates the project to help our company1846grow.'' David Gelwicks, President--Hickman Williams Co.18471848Booneville Bridge Project18491850Awardee:                 Iowa Interstate Railroad (IAIS)1851CRISI Grant:             $3,470,5001852Local Match:             $3,470,500 (50 percent)1853Total Project Cost:      $6,941,0001854Senator/State:           Senators Chuck Grassley (R-IA) and Joni Ernst1855                          (R-IA)18561857    This project replaces the 118-year-old Booneville Bridge over the1858Raccoon River, approximately 15 miles west of Des Moines. This bridge1859carries over 42,000 carloads per year on the Class II Iowa Interstate1860Railroad's (IAIS) Council Bluffs, Iowa, to Chicago, Illinois service.1861The bridge was in danger of being put out of service in the near future1862under previous conditions, which would have resulted in costly and1863inefficient rerouting of traffic and economic disruption in Nebraska,1864Iowa, Illinois, and points beyond. The new bridge will be able to1865withstand increasingly common flooding events. A video of the completed1866project is available here.18671868    ``The majority of the 8,000 carloads we ship go over that bridge1869and if that infrastructure was out, it would have a multi-million1870impact on the efficiency and cost-competitiveness of our business.''--1871Nick Bowdish, CEO Elite Octane18721873IAIS Continuous Welded Rail Upgrade18741875Awardee:                 Iowa Interstate Railroad (IAIS)1876CRISI Grant:             $5,579,3571877Local Match:             $6,291,615 (53 percent)1878Total Project Cost:      $11,870,9721879Senators/State:          Senators Chuck Grassley (R-IA) and Joni Ernst1880                          (R-IA)18811882    This is a capstone project to complete the replacement of jointed1883rail with modern continuous welded rail (CWR) on the IAIS between1884Council Bluffs and Des Moines, Iowa. The upgrade will replace the last188518.95 miles of jointed rail with CWR and allow for track speeds of 401886to 49 mph. As freight traffic grows on IAIS, the remaining 1950s-era1887Rock Island Railroad legacy jointed rail decreases the reliability and1888resiliency of the line by requiring slower speeds. Jointed rail has the1889propensity to have joint failures during Iowa's harsh winters, creating1890hazards for maintenance-of way employees and train crews. Replacing1891jointed rail will increase safety, lower maintenance costs, increase1892rail resiliency, and improve system and service performance by1893increasing train speeds. The project will allow IAIS to meet future1894freight demand for Nebraska, Iowa, and Illinois farmers, manufacturers,1895and ethanol refineries.18961897    ``Jointed rail on the IAIS mainline creates higher maintenance1898costs and leads to slower operating speeds and lower efficiency between1899Omaha and Des Moines for rail customers like my company. Replacing this1900rail will lead to a more resilient railroad which is important for the1901Iowa economy, and for the success of our business. Our business has1902made a sizeable investment in an ethanol plant where its viability is1903solely dependent on the long-term sustainability of the Iowa Interstate1904Railroad.''--Ryan Pellett, C.E.O., JD & Co.19051906Infrastructure Enhancement Program for Lake State Railway's Huron1907 Subdivision19081909Awardee:                 Lake State Railway (LSRC)1910CRISI Grant:             $7,875,7701911Local Match:             $8,197,230 (51 percent)1912Total Project Cost:      $16,073,0001913Senators/State:          Senators Gary Peters (D-MI) and Elissa Slotkin1914                          (D-MI)19151916    This project rehabilitated 30.3 miles of track with 115-pound1917continuous welded rail, tie and turnout renewal and crossing1918rehabilitation. It allowed for elimination of 23.8 miles of excepted1919track which resulted in increased speed from 10 to 25 mph and the1920upgrade of 6 miles from 25 mph to 40 mph. These improvements allowed1921for the full use of the heavier 286,000-pound railcars required by LSRC1922customers and Class I railroad interchange partners. The elimination of1923the aging and lighter 85-pound rail enhanced safety along the entire1924segment.19251926    ``Lake State Railway's service to our facility has allowed our1927operation to be cost competitive despite our remote location in1928relation to the majority of our customers and suppliers. The CRISI1929grant has allowed us to increase the railcar load capacity associated1930with the heavier 286-lb. railcars, reducing our cost and helping ensure1931our long-term success.''--Jim Spens, Plant Manager Panel Processing,1932Inc.19331934South Carolina Piedmont Freight Rail Service Improvement Program19351936Awardee:                 Lancaster & Chester Railroad (L&C)1937CRISI Grant:             $8,752,1851938Local Match              $4,712,715 (35 percent)1939Total Project Cost:      $13,465,9001940Senators/State:          Senators Lindsey Graham (R-SC) and Tim Scott (R-1941                          SC)19421943    This project provided funding for the acquisition of three EPA Tier19444 locomotives, the rehabilitation of 46 miles of track and one bridge1945upgrade to allow for the handling of 286,000-pound railcars. The1946project increased track speed from 10 mph to 25 mph, gave customers the1947ability to utilize 286,000-pound railcars and decreased locomotive1948emissions. The upgraded track resulted in the railroad attracting three1949new customers to the line.19501951    ``Over the last 11 years, Chester County has attracted over $31952billion in new industrial development creating almost 4,000 new jobs.1953This massive amount of opportunity is a direct result of having the1954short line L&C railroad as our partner.''--Alex Oliphant, City Council1955Member, Chester County, South Carolina19561957NDW Safety Upgrade in Opportunity Zones Project19581959Awardee:                 Napoleon, Defiance & Western (NDW)1960Grantee:                 Ohio Rail Development Corporation1961CRISI Grant:             $4,112,4521962Local Match:             $4,112,452 (50 percent)1963Total Project Cost:      $8,224,9041964Senators/States:         Senators Todd Young (R-IN) and Jim Banks (R-IN-1965                          03), Senators Bernie Moreno (R-OH) and Jon1966                          Husted (R-OH)19671968    This project upgraded approximately 10 miles of 80-pound rail with1969132 to 136-pound rail and replaced approximately 29,000 ties on 291970miles of rail between Woodburn, Indiana and Defiance, Ohio. The project1971was required to reduce the number of derailments previously occurring1972on this segment. A video overview of the project may be viewed here.19731974    ``The NDW provides transportation for our tomato paste from1975California to our facility saving us a lot of time and money versus1976going over the road. The rehabilitation also offers us new1977opportunities to move more materials by rail.''--Gavin Serrao,1978Cambell's Soup Logistics Manager, Napoleon, OH.19791980    ``This has been a railroad that's needed a lot of investment for a1981long time. Every State DOT knows there are these railroads that can be1982so much more for the local economy than they are now and NDW brought1983the professionalism, the expertise, and the financial resources to make1984this project possible.''--Matt Dietrich, Ex. Dir. Ohio Rail Development1985Commission19861987Velocity Enhanced Rail Transportation Project19881989Awardee:                 Nebraska Kansas Colorado Railway (NKCR)1990CRISI Grant:             $4,505,5421991Local Match:             $4,505,542 (50 percent)1992Total Project Cost:      $9,011,0841993Senators/State:          Senators Michael Bennet (D-CO) and John1994                          Hickenlooper (D-CO)19951996    This project installed approximately 42,595 ties, 15,990 tons of1997ballast, and resurfaced 562,848 track feet on the NKCR in western1998Nebraska and eastern Colorado. The project allows for removal of slow1999orders on approximately 106 miles of track and restores efficient2000operating speeds over most of the line. The improvements reduced2001overall trip times along the corridor by a minimum of four hours and2002reduced operating costs by reducing locomotive utilization and allowing2003crews to make a round-trip along the line within one day.20042005    ``The Velocity project will be a major rehabilitation of the2006freight rail line from Sterling, CO, to Wallace, NE, focused on2007removing slow orders where track conditions force trains to slow to a2008crawl. This line is the only rail connection for many agricultural2009customers in western Nebraska and eastern Colorado.''--U.S. Senator Deb2010Fischer (R-NE)20112012Transportation Investments for Employment and Safety (TIES1)20132014Awardee:                 OmniTRAX Holdings Combined Short Lines2015CRISI Grant:             $37,364,5042016Local Match:             $9,341,126 (20 percent)2017Total Project Cost:      $46,705,6302018Senators/State:          Jon Ossoff (D-GA) and Raphael Warnock (D-GA)20192020    This project replaced approximately 1,000 railroad ties per mile on2021135 high-density track miles on three OmniTRAX short line railroads--2022Illinois Railway, Alabama & Tennessee River Railway, and Georgia &2023Florida Railway--which will help sustain current FRA track safety2024standards and maintain current timetable speeds. The project is2025estimated to reduce track-related accidents by 67 percent, saving $112026million in losses, reduce locomotive utilization by 186,000 hours,2027eliminate 27 tons of NOX, 1 ton of PM2.5 and 4.52028tons of SO2. The project eliminates the need for 162029subsequent tie spot replacement mobilizations, saving $43 million.20302031    ``Covia Holdings is a major supplier of elemental raw materials2032used in a variety of industries, including glass production and housing2033construction. The majority of shipments to Covia's customers throughout2034the U.S. are handled by railroads such as those managed by OmniTrax2035Rail Holdings. Covia supports the TIES Project [and] reasonably2036believes that TIES will improve safety on the Illinois Railway (IR) by2037replacing a simple yet essential element of safe railroad2038infrastructure: the wooden railroad tie. The IR's ability to service2039Covia's plants, uninterrupted, in Illinois is fundamental to Covia's2040daily operations.'' Russell Montgomery, EVP/COO, Covia Holdings LLC20412042Rural Economic Preservation Through Rail Replacement20432044Awardee:                 Red River Valley & Western Railroad2045CRISI Grant:             $6,704,5442046Local Match              $2,915,234 (30.3 percent)2047Total Project Cost:      $9,620,7782048Senators/State:          Senators John Hoeven (R-ND) and Kevin Cramer (R-2049                          ND)20502051    The Red River Valley & Western serves the southeast corner of the2052state of North Dakota, linking numerous rural agricultural shippers2053with the national rail system. The project replaced 14.5 miles of old2054jointed rail with continuous welded rail between Independence and2055Oakes, North Dakota.20562057    The project has resulted in a safer, dependable rail system that2058will maintain economic competitiveness for current shippers and2059provides the capacity to meet the anticipated future demand with2060climate shifts pushing the grain industry and growing conditions2061northward.20622063    ``North Dakota is heavily reliant on railroads for the shipment of2064bulk commodities from our rural communities to their distant final2065destinations. A large portion of the grains produced in North Dakota2066are shipped over 1,200 miles by rail to Pacific Northwest port2067facilities at Seattle and Portland. North Dakota is therefore keenly2068interested in a safe, efficient, and reliable railroad network to2069provide value to the thousands of tons of bulk agricultural and energy2070products produced each year in our state. Preserving this vital rail2071network is essential for the economic development and sustainment in2072the rural communities served by short lines.''--Commissioners2073Fedorchak, Kroshus, and Christmann, North Dakota Public Service2074Commission20752076Sierra Northern Railway's Consolidated Rail Infrastructure and Safety2077 Improvement20782079Awardee:                 Sierra Northern Railroad (SERA)2080CRISI Grant:             $17,415,0002081Local Match              $18,300,000 (51.3 percent)2082Total Project Cost:      $35,700,0002083Senator/State:           Senators Alex Padilla (D-CA) and Adam Schiff (D-2084                          CA)20852086    Sierra Northern Railway (SERA) was challenged to add and manage2087current customers along the 55-mile-long Oakdale Division excepted2088track, built in 1897, servicing Riverbank, California in the Central2089Valley to Standard, California in the Sierra Nevada foothills. As2090excepted track, freight could move at no more than 10 mph along the2091route, taking 5 hours to transport freight from one end to the other.2092The project included replacing 20 miles of track with 115-pound rail,209390,000 railroad ties, and rehabilitating ten grade crossings. The CRISI2094Grant transformed the operation, adding a 116-acre transload site for2095building manifest unit trans without causing gridlock along the active2096line, and improving delivery time from end to end by 250 percent. The2097increased throughput has enabled SERA to:20982099   Quadruple carload business21002101   Add new customers, such as a new grain shipper21022103   Reduce derailments21042105   Provide 30 new railroad jobs in the area21062107   Improve grade crossings and increased speed led to less time2108        blocking the motoring public21092110   Took an estimated 5,000 trucks of propane off local highways2111        in year one21122113    A video overview of project is available here. [https://2114www.youtube.com/watch?v=2j8ulXpa1A0]21152116    ``The project began in 2019 and was completed a year and a half2117later. It has achieved everything we had anticipated, and more for the2118region. It has allowed the Sierra Northern to dramatically increase2119carloads by better serving current customers, and by attracting new2120business to rail. We are especially proud of how this project has2121served our local community--taking trucks off the road, especially on2122narrow mountain roads, reducing time spent at railroad crossings, and2123providing more well-paying railroad jobs in our region.''--Ken Beard,2124President, Sierra Northern Railway21252126Harwood Interchange Improvement Project21272128Awardee:                 Texas, Gonzales & Northern Railway (TXGN)2129CRISI Grant:             $2,223,7682130Local Match:             $2,223,768 (50 percent)2131Total Project Cost:      $4,447,5362132Senator/State:           Senators John Cornyn (R-TX) and Ted Cruz (R-TX)21332134    This project extended the siding at the interchange with the Union2135Pacific Railroad (UP) to 9,000 feet. The construction project included2136installing welded rail, steel ties, new modern power switches and the2137replacement of two aging wooden trestles with concrete culverts2138enhanced drainage. The purpose of the project was to enhance capacity,2139improve service, enhance safe operations, and help relieve highway2140congestion by moving shipments from truck to rail.21412142    The project has allowed TXGN to accommodate UP's unit rain traffic2143simultaneously with our carload traffic, which allowed for double2144capacity at interchange and a more fluid handoff with UP. Prior to the2145CRISI project completion, UP could deliver only one of those trains2146while then waiting on TXGN to clear the interchange before a second2147train could arrive. The increased operating capacity has saved2148customers up to 24 hours of transit time. The expanded capacity has2149allowed TXGN to attract two new storage customers, and annual carloads2150have increased from 3,726 in the year prior to the project to 4,6342151carloads in the first year following project completion, a 24 percent2152increase. Most recently TXGN attracted a new major company that has2153just announced that they are building a new facility on the TXGN and2154will increase carloads by 700 annually.21552156    Livestock Nutrition Center (LNC) is a leading feed manufacturing2157and grain handling company with facilities in 5 southwestern states,2158including a facility on the TXGN.21592160    ``The TXGN CRISI Grant Interchange Project has been a game-changer2161for our operations at Livestock Nutrition Center. By enabling the2162seamless handling of Unit Trains, this project has significantly2163improved the efficiency of our railcar traffic and opened the door for2164potential Unit Train movements into TXGN Railway. Without the2165enhancements brought by this project, we wouldn't have the opportunity2166to consider expanding our location. This improvement has not only2167reduced turnaround times for our railcars, improving utilization and2168operational efficiency, but it has also positioned us to better serve2169our customers and explore new growth opportunities. We are truly2170grateful for the partnership with TXGN Railway and the commitment they2171have shown to helping businesses like ours thrive.''--Maurice Janda,2172Fulfillment Manager, LNC21732174Joint Elimination--Rail Infrastructure and Safety Improvement21752176Awardee:                 Twin Cities & Western Railroad Company (TCWR)2177CRISI Grant:             $2,000,8392178Local Match              $2,000,839 (50 percent)2179Total Project Cost:      $4,001,6782180Senators/State:          Senators Amy Klobuchar (D-MN) and Tina Smith (D-2181                          MN)21822183    The Twin Cities & Western Railroad upgraded 1.3 miles of track with2184slow orders--a local speed restriction imposed that is slower than the2185track's normal speed limit due to deficient track to high-speed welded2186rail. The replacement resulted in significantly improved safety, as2187measured by decreased year-over-year rail defects found via ultrasonic2188tests from 106 defects in 2017 to 48 defects in 2020 (after project).2189The upgraded rail also reduced annual crosstie replacement from 20,0002190required in 2019, to 17,000 by 2021.21912192    For customers, the improved quality of the rail has contributed to2193a decrease in shipping time, decreases in delays due to mainline2194derailments, and maintaining efficient pricing due to decreased2195maintenance costs.21962197    Subsequent CRISI grants in FY 20 and FY 21 replaced rail on an2198additional 2 and 1 miles of track respectively, leading to an overall2199reduction in point-to-point shipping time of 56 percent across the 32200miles, and a further reduction in tie replacement needs of 30 percent,2201to 12,000 ties per year.22022203    ``The Twin Cities & Western Railroad is a vital east-west railway2204that carries over 30,000 freight cars annually throughout south-central2205and western Minnesota. Its rail lines are essential to the local and2206regional economy, connecting countless businesses and farmers to their2207commercial needs. Not only would these improvements ensure that our2208railways are safer and more reliable, but they would also minimize2209transportation costs for businesses, enhance Minnesota's economic2210competitiveness, support the regional supply chain and reduce the need2211for future maintenance and repairs. Completing these updates would2212support the needs of countless Minnesotans by improving and modernizing2213the regional rail network.'' Senator Amy Klobuchar, Unites States2214Senator, Minnesota22152216    ``Rail is one of the primary arteries of Minnesota commerce. This2217investment in the Twin Cities & Western Railroad Company will increase2218service, while also ensuring the safety of all those who live in2219communities along these vital transportation routes.''--Representative2220Tom Emmer (MN-06)22212222    Senator Young. Thank you, Mr. Gilbertson. Mr. Cumber, you2223are now recognized for 5 minutes.22242225     STATEMENT OF HUSEIN A. CUMBER, SENIOR ADVISOR,2226               BRIGHTLINE HOLDINGS, LLC22272228    Mr. Cumber. Thank you, Chairman Young, Ranking Member2229Peters, Senator Moreno, and other members of the Subcommittee.2230    As Senior Advisor of Brightline Holdings, and one of the2231people who developed the vision for this company, I am honored2232to be here to highlight the achievements of Brightline Florida2233and Brightline West, discuss the future of passenger rail2234service, identify challenges facing the development of2235additional passenger rail systems in America, and share some2236potential solutions.2237    Brightline Florida is the only private passenger rail2238system in the country constructed in the last 100 years.2239Building upon important lessons from Florida, we are now2240developing Brightline West, which will connect Southern2241California and Las Vegas. Brightline Florida started it as an2242idea in 2011.2243    As we looked at successful passenger rail systems globally,2244it became clear that a 250 to 300 mile corridor was the ideal2245length. This distance connects city pairs that what we call are2246too far to drive, but too close to fly. To date, we have2247invested more than $6 billion of private capital in Brightline2248Florida.2249    Our six stations will soon be joined by two new stations in2250communities where local elected officials have recognized the2251advantage of being connected to our rail system. Our Florida2252system also includes 10 American made train sets. Looking back2253over our history, we now recognize lessons learned from several2254challenges that all projects of this scale must overcome to be2255successful.2256    First, privately developed intercity passenger rail2257projects would benefit from being directly eligible for USDOT2258and Federal Railroad Administration discretionary grants. The2259industry also would benefit from a more streamlined2260discretionary grant process. Two, cost-effective access to2261right of way is essential. Third, completion of environmental2262approvals in a timely manner.2263    And fourth, access to low cost debt is required to build2264greenfield, first of its kind projects. The Senate Commerce2265Committee has recognized that all modes of transportation need2266to be supported through discretionary grant programs. Effective2267grant oversight requires direct engagement with the entity2268implementing a project. The CRISI Grant Program is the only one2269that allows private companies to apply for Federal funding as a2270prime recipient.2271    Under other FRA and USDOT grant programs, private companies2272can still receive funds but must do so through a public2273intermediary. In this scenario, the public entity passes2274through the funds and reporting obligations.2275    This unnecessary additional layer can compromise the2276effectiveness of USDOT monitoring, reporting, and audit2277procedures. Many public entities will simply refuse to sit2278between USDOT and a private company implementing a major2279greenfield project like high speed rail.2280    At minimum, the Fed-State Partnership Program's applicant2281eligibility language should match that of the CRISI program. In2282an ideal scenario, all USDOT discretionary grant programs2283should have their applicant eligibility language harmonized.2284    Additionally, the Subcommittee should look at consolidating2285some or all of the FRA discretionary grant programs into a2286combined calendar. This consolidation would streamline the2287entire FRA grant process by eliminating the need to2288continuously issue notice of funding opportunities, review2289grant submissions, and negotiate grant agreements continuously2290throughout the year.2291    The use of existing transportation corridors is fundamental2292to our business thesis. Reexamination of the permitting and2293approval process is an opportunity for improvement. Two changes2294that would create a more efficient process are first to provide2295additional NEPA delegation authority to states for passenger2296rail projects. And two, to provide USDOT clear authority for2297issuing categorical exclusions for infrastructure projects that2298are constructed in an existing transportation corridor.2299    Accessing significant capital to support the cost and the2300lengthy construction schedule of new infrastructure projects2301remains a key challenge. We successfully utilized the private2302activity bond market as our primary capital source, and it2303proved to be successful. Increase in the private activity bond2304cap in the Transportation Reauth bill from $30 billion to $452305billion is necessary, not just for rail projects, but managed2306lanes and other surface transportation projects.2307    In addition to private activity bonds, the Railroad2308Rehabilitation Infrastructure Financing Program has tremendous2309potential to unlock private sector capital for infrastructure.2310There should be a process whereby RIF is more streamlined if an2311equal amount of the capital stack includes private sector2312equity and debt from qualified financial institutions.2313    I would be remiss if I did not reinforce the importance of2314maintaining, if not increasing, the funding levels for rail2315discretionary grant programs. I want to end by inviting you all2316to come to Florida and take a ride to see what we have built.2317    I am proud of the more than 600 teammates at Brightline2318Florida that have built a product that is leading a passenger2319rail renaissance in America. Thank you, and I look forward to2320your questions.2321    [The prepared statement of Mr. Cumber follows:]23222323        Prepared Statement of Husein A. Cumber, Senior Advisor,2324                        Brightline Holdings, LLC2325    Thank you, Mr. Chairman, Ranking Member, and members of the2326Subcommittee. As Senior Advisor of Brightline Holdings, LLC and one of2327the people who developed the vision for this company in mid-2011, I am2328honored to be here to highlight the achievements of Brightline Florida2329and Brightline West, discuss the future of passenger rail service in2330the U.S., identify challenges facing the development of additional2331high-speed and intercity passenger rail systems in America, and2332potential solutions.2333    One of the biggest challenges of any infrastructure project is2334putting together the necessary rights-of-way. In my prior role as an2335executive at Florida East Coast Railway, we granted a perpetual2336passenger rail easement to a sister company that could then develop or2337sell rights for future commuter and intercity passenger rail systems.2338This sister company ultimately became Brightline Florida and initially2339owned the access rights to operate passenger rail from downtown Miami2340to Cocoa, Florida (a location proximate to Kennedy Space Center and2341Port Canaveral), but was missing right-of-way between Cocoa and Orlando2342International Airport to complete the system. These two locations are2343connected by a state transportation corridor. In 2012, Governor Rick2344Scott and the Florida Department of Transportation entered into a lease2345agreement with Brightline Florida to complete the 235-mile corridor.2346Hence, Brightline Florida was born overcoming a major challenge--a2347continuous right-of-way.2348    Over the past decade, Brightline Florida has been the only private2349passenger rail system in the country to construct and operate a modern,2350consumer-focused service that connects cities with characteristics2351essential for successful rail operations. Building upon important2352lessons from Florida, we are now developing Brightline West, which will2353connect Southern California and Las Vegas.2354    Both projects represent a model where the private sector plays a2355lead role in establishing a blueprint for how our Nation can build2356intercity passenger rail, while at the same time stimulating a new2357industrial base that will reverberate across the country, driving2358economic growth, creating jobs, and setting a new standard for2359passenger rail travel in America.2360    As mentioned earlier, Brightline Florida started as an idea in23612011. As we looked at successful passenger rail systems globally it2362became clear that a 250-to 300-mile corridor was the ideal length. This2363distance connects city pairs that are too far to drive but too close to2364fly. In the U.S., with the notable exception of the Northeast2365Corridor's Acela service introduced in 2000, this model was discussed2366but never implemented until Brightline Florida. Miami to Orlando2367presented the perfect opportunity to introduce rail service in a region2368of the country that was experiencing a positive population shift, but2369continued to be challenged with a congested transportation system. With2370the benefit of a head start afforded by the perpetual passenger rail2371easement, we set a new bar for innovation in passenger rail2372transportation.2373    To date, we have invested more than $6 billion of private capital2374across the 235 miles from Miami to Orlando. Our initial stations are2375located in Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm2376Beach and Orlando International Airport and will soon be joined by2377stations in Martin County and Cocoa. Our Florida system also includes2378two vehicle maintenance facilities, ten American-made trainsets, and2379employs more than 600 teammates. We represent an alternative to driving2380on Interstate 95, which is one of the most congested roadways in the2381country, especially in South Florida.\1\2382---------------------------------------------------------------------------2383    \1\ https://siteselection.com/congestion-capitals/2384---------------------------------------------------------------------------2385    In September 2023, we opened our newest station at the Orlando2386International Airport and began offering daily, hourly service between2387South Florida and Central Florida. In 2024, our first full year of2388service between our terminal stations, we carried nearly 3 million2389passengers. Our ridership continues to grow, with record monthly2390ridership occurring throughout 2025, and we expect to eventually carry2391over 600,000 monthly passengers as the business reaches its full2392potential.2393    Looking back over our history, we now recognize lessons learned2394from several challenges that all projects of this scale must overcome2395to be successful.23962397  1.  Privately developed intercity passenger rail projects would2398        benefit from being directly eligible for USDOT and Federal2399        Railroad Administration (FRA) discretionary grants. The2400        industry at large would benefit from a more streamlined2401        discretionary grant program.24022403  2.  Cost-effective access to right-of-way is essential.24042405  3.  Completion of environmental approvals in a timely manner to meet2406        the demands of early financial investors is critical.24072408  4.  Access to low-cost debt is required to build a financially2409        sustainable business model for greenfield, first-of-its-kind2410        projects.24112412  5.  Shifting people out of their car-centric mindset requires2413        redefining the passenger rail experience in the U.S.24142415    Given my experience guiding both Brightline Florida and Brightline2416West from initial concept, it is clear that this Subcommittee can make2417significant impacts during the upcoming transportation reauthorization2418process.2419Building on Existing USDOT and FRA Grant Programs2420    The U.S. Senate Committee on Commerce, Science & Transportation has2421recognized that all modes of transportation need to be supported2422through discretionary grant programs. Effective grant oversight2423requires direct engagement with the entity implementing a project.2424Consolidated Rail Infrastructure and Safety Improvements (CRISI) is the2425only grant program that allows private companies to apply for Federal2426funding as a prime recipient (i.e., without a public sector partner).2427This direct eligibility for CRISI funding comes with a relationship of2428direct oversight from the FRA. Under other FRA and USDOT grant2429programs, private companies can still receive funds but must do so2430through an intermediary: a public entity that serves as the primary2431applicant. In this scenario, the public entity passes through the funds2432and reporting obligations. This unnecessary, additional layer can2433compromise the effectiveness of USDOT monitoring, reporting, and audit2434procedures, in addition to increasing project risk, cost, and delays.2435    Many public entities will simply refuse to sit between USDOT and a2436private company implementing a major greenfield project like high-speed2437rail. At minimum, the Federal-State Partnership for Intercity Passenger2438Rail (FSP) grant program's applicant eligibility language should match2439that of the CRISI program. In an ideal scenario, all USDOT2440discretionary grant programs should have their applicant eligibility2441language harmonized. Making this change will allow future intercity2442passenger rail projects to be implemented without putting elected2443officials in the difficult political situation of having their state2444DOTs or other public agencies take on unnecessary risk.2445    Additionally, the Subcommittee should look at consolidating some or2446all of the FRA discretionary grant programs into a combined calendar.2447This consolidation would streamline the entire FRA grant process by2448eliminating the need to continually issue Notice of Funding2449Opportunities (NOFO), review grant submissions, and negotiate grant2450agreements continuously throughout the year. The goal should be to get2451infrastructure dollars to grant recipients as quickly as possible so2452the funds can be spent. This goal is hard to achieve when the FRA must2453oversee multiple grant programs every year on different schedules. This2454change to the grant programs would also reduce the human and financial2455capital needed to apply for discretionary grants. For example, issue2456all the NOFOs in the first quarter, review the grant applications in2457the second quarter, make all grant announcements in the third quarter2458and negotiate grant agreements in the fourth quarter.2459Utilization of Existing Transportation Corridors2460    The use of existing transportation corridors is fundamental to our2461business thesis. I mentioned how the first major challenge for any2462infrastructure project is putting together a right-of-way. The2463utilization of existing transportation corridors is a common-sense2464approach to assembling an end-to-end corridor. Assembling a greenfield2465right-of-way is simply too difficult, can take too long, and cost too2466much, typically requiring eminent domain. This process can create2467headwinds from the start and engender negative perceptions among the2468very people you want to convince to be your future customers.2469    Leveraging existing infrastructure dramatically reduces land2470acquisition costs, minimizes environmental impacts, and accelerates2471construction and development timelines. Moreover, many governmental2472entities maintain control of extensive transportation corridors across2473the country. The cooperation of public and private sectors to leverage2474these assets facilitated a significant breakthrough for us and has2475become one of our most important lessons learned.2476    In fact, Brightline West's alignment is almost entirely within the2477median of Interstate 15. This configuration is the result of2478cooperation among the Nevada Department of Transportation (NDOT),2479Caltrans, the San Bernardino County Transportation Authority and the2480Department of the Interior's Bureau of Land Management. Agreements2481reached through this cooperation created the approximately 220-mile2482rail corridor. These public entities recognized the advantage of using2483a highway corridor, first opened to traffic in the 1960s, as an2484opportunity to introduce the first true high speed rail system in2485America.2486Permitting and Approvals2487    In Florida, we built our system in two phases. Initially we2488developed a 67-mile segment from Miami to West Palm Beach and then2489followed that with an additional 168-mile segment to Orlando four years2490later.2491    We made this a two-step process because of two real time2492challenges: (1) the complexities of the environmental approval process,2493and (2) the ability to raise the capital required for the development2494and construction phases.2495    Our first 67 miles existed entirely within an active freight2496railroad corridor allowing us to expedite the required environmental2497process. In the end, we received a Finding of No Significant Impact.2498However, because the Cocoa to Central Florida segment ran along the2499state highway system and was new rail construction, this segment2500required a more extensive, multi-year environmental process despite2501being an active transportation corridor.2502    While the South Florida system had ``independent utility,'' the2503extension to Orlando was needed to guarantee long-term financial2504success for Brightline Florida. We were faced with the difficult2505decision of whether to delay advancing construction on the entire2506system for a protracted and unpredictable period while the2507environmental process for the Orlando segment progressed or take a more2508proactive posture and build the first operating segment immediately2509upon approval, and then extend the system once the second environmental2510process was completed.2511    To be sure, efficiencies in the environmental process represent2512enormous opportunities for time and cost savings that can change the2513course of the viability of these kinds of infrastructure investments.2514It is vital for moving passenger rail projects forward that this2515Subcommittee, working with colleagues on the Senate Committee on2516Environment and Public Works, develop a more efficient environmental2517approval process. Two changes that would create a more efficient2518process are (1) to provide additional NEPA delegation authority to2519states for passenger rail projects, and (2) to provide USDOT clear2520authority for issuing Categorical Exclusions for infrastructure2521projects that are constructed in an existing transportation corridor.2522Access to Capital2523    Accessing significant capital to support the cost and the lengthy2524construction schedule of new infrastructure projects remains a key2525challenge. As a privately funded project, and the first of its kind in2526over a century, Brightline Florida had to finance the project in2527increments as opposed to fully capitalizing the company upfront. This2528was a strategy based on necessity rather than cost-efficiency. We2529successfully utilized the Private Activity Bond market as our primary2530capital source, and it proved to be successful. The availability and2531lower cost of tax-exempt debt was essential to our ability to succeed.2532    In addition to Private Activity Bonds, the Railroad Rehabilitation2533and Infrastructure Financing (RRIF) program has tremendous potential to2534unlock private sector capital for major infrastructure projects. RRIF2535today can fund up to 100 percent of a project's cost. There should be a2536process whereby the RRIF loan process is more streamlined if an equal2537amount of the capital stack includes private sector equity and debt2538from qualified financial institutions. We look forward to working with2539the Subcommittee during the transportation reauthorization process to2540improve the RRIF loan program.2541Customer Focus2542    Our ultimate success is due to our teammates delivering an2543experience that resonates with modern travelers. Our customer2544satisfaction ratings show that people are embracing the product. On2545time performance and train frequency have been key metrics in our ramp-2546up period. And through data-driven marketing strategies, including2547social media and partnerships across multiple verticals such as2548airlines, hotels, sports and entertainment, real estate, fintech, and2549cruise lines, Brightline has built strong consumer engagement.2550    Brightline Florida is a success and provides a roadmap for the2551future. That future is Brightline West, America's first true high-speed2552rail system.2553    Let me emphasize that point. Today, the United States has ZERO2554miles of true high-speed rail, which is commonly defined as systems2555traveling over 186 mph. By comparison, China has approximately 29,0002556miles of high-speed rail, making it by far the world's largest network.2557Japan has about 1,800 miles of high-speed rail, primarily through its2558Shinkansen system which began operation in 1964 and Europe's network2559totals roughly 7,500 miles across 11 linked countries.2560    Brightline West will connect Las Vegas and Southern California with2561the first passenger train in the country operating at over 200 miles2562per hour. This all-electric rail service will include a flagship2563station in Las Vegas, with additional California stations in Apple2564Valley, Hesperia, and Rancho Cucamonga. Trains will take passengers2565from Las Vegas to Southern California in approximately 2 hours, twice2566as fast as the normal drive-time. The Southern California station will2567connect to Los Angeles' Metrolink service, creating a network for2568seamless rail connectivity into LA's Union Station.2569    Today, nearly 50 million annual trips occur between Los Angeles and2570Las Vegas--over 85 percent of them by car--a trip which is2571unpredictable, unreliable, and challenged by congestion.2572    Brightline West expects to serve nearly 9 million one-way2573passengers annually. As noted, this project, which is in the final2574stages of contracting, has fully assembled right-of way, and full2575environmental clearance. The project has a four-year construction2576timeline.2577    The project is one of the largest in the Nation and will be2578constructed entirely as a Buy America initiative, built and operated by2579union labor. In 2023 we announced a landmark partnership with 13 rail2580unions representing more than 160,000 railroad workers in the United2581States. This agreement represents a historic milestone establishing a2582commitment for the use of highly skilled union labor to operate our2583business. In addition, the State Building and Construction Trades2584Council of California (SBCTC), and the Southern Nevada Building Trades2585Union signed an agreement with our team to ensure their participation2586in the project's construction.2587    Independent economic studies estimate that the project will create258835,000 indirect jobs and 10,000 direct jobs during construction.2589    The trains will be manufactured by Siemens Mobility in a new2590purpose-built factory. This facility alone will create 300 new jobs and2591is a tremendous example of the economic impact that will be felt all2592around the country as the ripple effect of a new supply chain will2593include more than 120 vendors from 28 states.2594    For Brightline West, the introduction of new high-speed technology2595and an entirely new infrastructure base comes with higher capital costs2596than our Florida system and is therefore proud to be supported with2597Federal grant assistance to offset some of the upfront capital costs of2598the project. This Federal grant will be supported by private activity2599bonds, debt, and additional private equity.2600    As for what can be done to continue to encourage growth in this2601sector, let me return to the challenges discussed earlier.2602    Re-examination of the permitting and approval process is an2603opportunity for improvement. We would encourage this Subcommittee and2604the FRA to identify ways to streamline and reduce the amount of time2605and investment it takes to proceed within existing laws and regulatory2606frameworks. Simply put, the environmental process takes too long, costs2607too much, and involves a series of hurdles and a wide range of2608approvals at every level of government. While we appreciate the2609diligence of officials in protecting the public, we must refine the2610process for this industry to thrive. Ensuring a robust environmental2611process does not have to come at the expense of efficiency. The process2612can be both efficient and sufficient to ensure the public is protected.2613    Massive investments needed for high-speed rail projects require2614cost-efficient, long-term capital, and there are ways this subcommittee2615may be able to assist with overcoming this challenge. Continued support2616of Private Activity Bonds is critical to the capital needs of these2617projects. Private Activity Bonds attract private lenders willing to2618accept lower rates on bonds because of their tax-exempt status and2619those lower rates reduce the cost of capital to the developer. The2620savings on interest expense can be redirected into hard assets. Any2621deferred tax revenue is made up many times over as the invested money2622is put to work in the economy. We have proven the markets are receptive2623to these investments, and future projects will need access to lower2624debt costs from this program.2625    Previously, the Bipartisan Infrastructure Law increased the Private2626Activity Bond volume cap from $15 billion to $30 billion.2627Unfortunately, the USDOT has nearly reached that cap necessitating an2628increase to the cap of up to $45 billion. While this issue falls under2629the jurisdiction of the Senate Finance Committee, this Subcommittee and2630its staff can effectively advocate to increase the surface2631transportation Private Activity Bond volume cap.2632LIABILITY CHALLENGE FACING THE PASSENGER RAIL INDUSTRY2633    One of the biggest challenges currently facing the passenger rail2634industry is the proposed increase in the amount of the limitation (or2635cap) on rail passenger liability which was initially enacted as part of2636the 1997 Amtrak Reform and Accountability Act. This cap was2637incorporated into the Fixing America's Surface Transportation (``FAST2638Act''), the five-year surface transportation bill, in December 2015.2639The cap increased from $200 million (the original cap in 1997) to2640approximately $295 million. The cap was also indexed to inflation and2641is to be adjusted every five years.2642    The index methodology ensures that the aggregate allowable awards2643to all rail passengers, against all defendants, for all claims,2644including punitive damages, arising from a single accident or incident2645is based on current dollars adjusted for inflation. Today the cap is2646$323,000,000. The cap is scheduled to be adjusted again in the first2647quarter of 2026. With the consumer price index as the sole determinant2648of the adjustment, it is anticipated there will be a very significant2649increase in the cap. The cap is likely to rise to approximately $4002650million.2651    There is a time-frame mandated in law that provides for an2652adjustment to the Federal cap on liability and, historically, the time2653frame for the increase to become effective was 30 days from the date2654the law was amended. The 30-day period is insufficient for all2655passenger railroads nationwide to secure additional coverage. The2656industry is asking for a legislative change that will adjust the2657effective date from 30 to up to 365 days. It will also reduce the2658review period from every five years to every four years, thus2659maintaining a five-year cycle for the adjustment.2660    The process of securing all liability insurance coverage is quite2661complex and requires a period far more than 30 days to complete. It is2662customarily a process that requires a minimum of six months. Currently2663all passenger rail agencies, including Amtrak and Brightline, are2664required, due to the availability of coverage, to procure the majority2665of their coverage from overseas insurers. There is no single insurance2666company that is willing to fully insure a passenger railroad for a2667potentially catastrophic event.2668    Passenger rail systems like Brightline have renewal dates spread2669across the calendar, so everyone is not seeking coverage2670simultaneously. The proposed increase in the passenger liability cap,2671and the 30-day implementation date, will create a set of circumstances2672that will be very detrimental to passenger railroads and only benefit2673the excess rail liability insurers. Passenger railroads will be2674beholden to the pricing and terms set forth by the insurers.2675    There should also be a conversation about resetting the cap since2676it has not been adjusted since positive train control was mandated by2677the U.S. Congress. This technology has had a significant positive2678effect on safety across the rail system. The safety benefits should be2679reflected in the cap being adjusted downward. This would be a one-time2680reduction, then the adjustment would continue every five years as2681mandated today.2682At Minimum Maintain Discretionary Grant Funding Levels for Rail2683    I would be remiss if I did not reinforce the importance of2684maintaining, if not increasing, the funding levels for rail2685discretionary grant programs. I have already mentioned reasons why2686through the Brightline examples. I want to also mention my involvement2687with Transtar, the short line rail network that was a former subsidiary2688of U.S. Steel and continues to provide freight rail service to many of2689their plants. Given the news this past week regarding the Trump2690Administration facilitating a final agreement between U.S. Steel and2691Nippon Steel, our attention will now focus on ensuring that the2692necessary rail infrastructure exists to support the direct foreign2693investments that will be made in steel plants across America. Transtar2694stands ready to meet the needs of America's steel industry and the FRA2695discretionary grant programs will be vital to making sure that our2696short line railroads are in a state of good repair.2697    The importance of the timing of today's hearing is not lost on2698anyone in the passenger and freight rail industry. The current2699transportation reauthorization bill ends on September 30, 2026. I am2700hopeful that this hearing will lay the groundwork for a bipartisanship2701spirit that will lead to an infrastructure bill by the time the current2702bill expires. Because, simply put, infrastructure built today is2703cheaper than infrastructure built tomorrow.2704    To conclude, I invite you all to come to Florida and take a ride to2705see what we have built! I am proud of the more than 600 teammates at2706Brightline Florida that have built a product that is leading a2707passenger rail renaissance in America. They have redefined train2708travel. And each one of them is up to the challenge of unlocking the2709full potential of high-speed rail in America.2710    Thank you, and I look forward to your questions.27112712    Senator Young. Thank you, Mr. Cumber. I think you will have2713many takers in visiting Florida among those listening. Mr.2714Anthony, you are recognized for 5 minutes.27152716      STATEMENT OF CLARENCE E. ANTHONY, CEO AND EXECUTIVE2717       DIRECTOR, NATIONAL LEAGUE OF CITIES, AND FORMER2718       MAYOR OF SOUTH BAY, FLORIDA27192720    Mr. Anthony. Thank you, Chairman Young, Ranking Member, and2721members of the Committee. I am here today on behalf of the2722Nation's more than 12,000 cities, towns, and villages that have2723tracks running through their neighborhoods and their downtowns.2724    I would like to begin today by putting safety first and2725thanking this committee for your leadership on safety programs2726in the IIJA that are saving American lives every day. The new2727Rail Crossing Elimination Grants and the Safe Streets Grants,2728both championed in this committee, are being put to work in2729communities of every size in America, and the results are2730clear.2731    Traffic deaths and rail incidents are finally trending2732down. So let's keep up these essential safety efforts in the2733reauthorization ahead of us. The National League of Cities2734believes national rail investments are on track, but we need to2735keep up the momentum.2736    This means investing in the corridors we serve today and2737identified in the Corridor ID Program. With the certainty of2738advanced appropriations, capital investment in passenger rail2739service in the U.S. is showing great gains. Amtrak had its best2740year yet in 2024, with more capital projects, customers, and2741record revenue than ever before, and they are on track to do2742the same in 2025.2743    However, not everything is on track. More than 4,000 trains2744have derailed since 2020, with nearly 70 percent of derailments2745happening inside cities, particularly small cities. The 20232746Norfolk Southern train derailment in East Palestine Ohio was a2747jarring reminder for all cities and towns about how quickly a2748train coming through can derail with hazardous materials on2749board, harming both their towns and the economic potential for2750years to come.2751    The Norfolk derailment is not unprecedented. It follows a2752trend of hazardous material derailments in Drafton, Fort Worth,2753Maryville, and Paulsboro and--among others. Experts have made2754it clear that derailments are preventable with good2755maintenance, safety standards, and of course, technology.2756    Congress is the only level of Government--full and2757unquestionable authority to establish the rail safety2758improvements needed for American communities, emergency2759responders, rail workers, and of course, rail customers. We are2760deeply appreciative of everything that this committee has done2761to set safety performance far higher.2762    City leaders that have dealt with the derailments echo one2763common message, no other community should have to go through2764this preventable disaster. And with safety inspections,2765investments incentives, Congress could make our communities2766safer and make railroads more profitable by keeping the trains2767on the tracks where they belong.2768    So, in order to show that we are partners, we made eight2769recommendations. One, adopt and fund expert NTSB's2770recommendation on rail safety. Two, invest in Rail Crossing2771Elimination Program to improve the flow of rail traffic and2772local transportation traffic so that these are not blocked--the2773crossings aren't.2774    Three, provide long term rail funding certainty through2775advanced appropriations or other means that keep the momentum2776for the Corridor ID Program going, which has many great2777projects we want to move.2778    Four, lower the cost of rail infrastructure material and2779structure through innovation and experimentation funding,2780because the cost of rail infrastructure has doubled in the last2781couple of years. Five, modernize safety data and blocked2782crossing reporting. Six, support safety information flow2783between the railroads, city leadership, and of course, our2784local first responders.2785    Seven, establish an FRA liaison for railroads and2786communities. And finally, and most importantly, maintain and2787modernize rail inspections. We need to recognize that2788technology can support inspections, but it cannot safely2789supplant them. And so, thank you on behalf of the National2790League of Cities and the 12,000 cities in America. We are here2791to partner.2792    [The prepared statement of Mr. Anthony follows:]27932794Prepared Statement of Clarence E. Anthony, CEO and Executive Director,2795   National League of Cities, and former Mayor of South Bay, Florida2796    Good morning, Chairman Young, Ranking Member Peters, and Members of2797the Committee.27982799    On behalf of the more than 19,000 cities, towns, and villages2800across America, I want to put safety first and will begin my remarks by2801thanking this Committee for their leadership in supporting critical2802safety improvements that are saving the lives of our family, friends2803and neighbors in America's communities. The new Rail Crossing2804Elimination (RCE) program and the Safe Streets and Roads for All (Safe2805Streets) program have been embraced by communities of every size in2806every state, and the results are clear--the U.S. Department of2807Transportation's National Highway Traffic Safety Administration reports2808we are in the 11th consecutive quarterly decrease in traffic fatalities2809and the Federal Railroad Administration reports some slight progress on2810total rail accidents/incidents in the last few years (2017: 11,990 vs.28112024: 10,255). Together, we must continue to build on the safety focus2812across our transportation networks and embrace a wholistic safe system2813approach.2814National Rail Investments are On Track and Showing Promise2815    Local governments are proud to partner with the Federal government2816through the Infrastructure Investment and Jobs Act (IIJA) to tackle the2817Nation's infrastructure backlog from the ground up and contribute to2818the rebuilding that is happening across the country right now. We2819appreciate the opportunity to testify today about how rail investments2820in the next surface transportation reauthorization can serve our2821country in the years to come.2822    The U.S. has made tremendous progress on forward-looking passenger2823rail investments and improvements for the safe and efficient movement2824of freight rail through the IIJA, and we encourage Congress to build on2825that momentum by growing critical safety programs like the Rail2826Crossing Elimination program and investments in core rail passenger2827programs. Tremendous proposals came together across the country for the2828Corridor Identification and Development (Corridor ID) program to map2829out a pipeline of passenger rail projects ready for build out. With2830continued investment and longer term funding certainty provided by2831advance appropriations in the IIJA, passenger rail service in the U.S.2832is showing great gains and is absolutely on the right track.2833    Amtrak had its best year yet in 2024 with more customers and2834generated more revenue than ever before, while also making record-2835setting capital investment and setting eighteen ridership records at2836the route level. Amtrak carried a record 32.8 million intercity2837passengers (up 15 percent from FY 23, and above the pre-COVID-19 peak),2838generating $3.6 billion in operating revenue (up 7 percent from FY 23)2839and invested nearly $4.5 billion in critically-important capital2840projects (up 55 percent from FY 23, and 178 percent above the pre-2841pandemic peak) for rail infrastructure programs, major procurements of2842new train equipment, and overdue upgrades to stations. We are also2843seeing a boon with new and more frequent services like the new Chicago2844to-Twin Cities Borealis in partnership with the Minnesota, Wisconsin,2845and Illinois Departments of Transportation. The train makes stops in a2846variety of small cities, including Columbus, Portage, Wisconsin Dells,2847Tomah and others that are seeing the direct benefits of what a train2848stopping by their city can do in addition to the destination cities of2849St. Paul, Minneapolis, Milwaukee, and Chicago. The results for this2850Fiscal Year (FY25) are looking even brighter with record breaking2851ridership and revenue forecasts as well as NextGen Acela trains on the2852way in addition to new ``Mardi Gras'' services from New Orleans to2853Mobile this summer.2854Majority of U.S. Communities Have Rail Tracks and Want Safe Operations2855    Cities of all sizes across the U.S. want to ensure that rail is run2856successfully in our country. More than 12,000 out of the more than285719,000 cities, towns and villages across the country are impacted by2858our Nation's trains coming through neighborhoods and downtowns and2859crossing over the 3 million miles of roads that local governments own2860and maintain. We are the hosts to many of the 500 Amtrak stations2861across 46 states and are served by both existing and expanding service2862options like those from Brightline. We recognize the importance of2863Congress' role in supporting a modern rail transportation system and2864the service it provides to our country. However, we also know there is2865more Congress can do to keep rail moving without harming the2866communities it is supposed to serve.2867Rail Safety Impacts Small Cities Disproportionately in Clear Trend Line2868        of Hazardous Incidents2869    Unfortunately, more than 4,000 trains have derailed since 2020 with2870nearly 70 percent of derailments happening in cities. Small cities are2871disproportionately affected by rail accidents: Cities with fewer than28721,000 residents have an average of 12.9 accidents as compared to 3.12873for cities between 1,000 and 10,000 and less than 1 for cities over287450,000. The Norfolk Southern train derailment in East Palestine, Ohio,2875was a jarring reminder for all local governments of how quickly any one2876of these rail incidents in their backyards can dissolve the economic2877potential of the communities they represent and serve. While an2878incident can quickly fade into the background of the news cycle, this2879Committee's oversight of the derailment and environmental contamination2880in East Palestine, Ohio, is essential to holding the spotlight on2881safety because while the Norfolk Southern derailment was substantial,2882it is not unprecedented. Here are a few derailments of note with2883hazardous materials involved:28842885   In 2020, in Draffin, Kentucky, a CSX train derailed three2886        locomotives, one buffer car, and four tank cars toward the2887        rain-swollen Russell Fork river, submerging the cab. Two DOT-2888        111 tank cars were breached and released about 38,400 gallons2889        of denatured ethanol, which in combination with about 11,3002890        gallons of released locomotive diesel fuel ignited into a post-2891        accident pool fire. Crewmembers were trapped in the train fire,2892        swam to safety, and were transported by ambulance to a local2893        hospital for treatment. Local police advised occupants of 6 to2894        10 nearby homes to evacuate.28952896   In 2019, in Fort Worth, TX, a Union Pacific Railroad train2897        derailed near East Berry Street and South Riverside Drive,2898        triggered a massive fire fueled by more than 100,000 gallons of2899        ethanol from the tanker cars. Several homes were evacuated and2900        three horses were killed when flames spread to a nearby stable.2901        Of the 24 tanker cars that had the potential to create a deadly2902        fire fueled by up to 672,000 gallons of flammable liquid, only2903        nine leaked some of their ethanol cargo, including the four2904        cars that witnesses saw burning. The National Transportation2905        Safety Board used the incident to compare the crash and fire2906        effects of the newer DOT-117 tanker cars compared to the DOT-2907        111 phased for retirement and were involved in the East2908        Palestine derailment.29092910   In 2015, in Maryville, TN, ahead of the Independence Day2911        holiday, a 57-car CSX train carrying 27 cars of hazardous,2912        flammable and toxic substances derailed and caught fire,2913        prompting the evacuation of thousands of people within a two-2914        mile radius. About 5,000 people in the area were evacuated, and2915        197 people were injured with 87 treated at hospitals including2916        ten first responders. The cities of Alcoa and Mayville2917        emergency response expenses alone exceeded $225,000 in addition2918        to Blount County's larger emergency response.29192920   In 2012, in Paulsboro, NJ, near Philadelphia, PA, a Conrail2921        train transporting the chemical vinyl chloride derailed while2922        crossing a bridge that collapsed over Mantua Creek. Seven cars2923        derailed, four rail cars fell into the creek, breaching one2924        tank and releasing approximately 23,000 gallons of vinyl2925        chloride. Local, state, and Federal emergency personnel2926        responded on scene. Almost 700 people were evacuated, and2927        nearby schools were ordered to immediately take shelter and2928        seal off their buildings. Not including the train crew and2929        emergency responders, 28 residents sought medical attention for2930        possible exposure to vinyl chloride. A decade after the2931        incident, the impact to the community remains clear to city2932        leaders--``A lot of houses became vacant, rundown, crime,2933        filth, you name it, all because of [the spill] . . . there were2934        plans already before the train wreck to open all of these2935        stores that you see now and they came to a halt.''29362937    Experts have made it clear that derailments are preventable with2938good maintenance, safety standards and technology. Congress must set2939the safety performance bar or continue to watch community after2940community bear the economic consequences of train derailments. Rail2941remains important to our country, but its operation should never be at2942the expense of these communities.2943Rail Safety Starts and Ends with the Commerce Committee2944    Despite railroads running fewer yet longer trains with steady2945levels of hazardous materials, derailments have not substantially2946decreased. Therefore, any train that derails is more likely to be2947carrying hazardous materials that are highly explosive, increasing the2948risk to the communities they pass through. Cities that have had2949derailments keep echoing a common message--no other community should2950have to go through these preventable disasters, and with safety2951protocol like inspections and investment incentives for maintenance,2952Congress could make our communities safer and make railroads more2953profitable by keeping the trains on the tracks where they belong.2954    Unlike other modes of transportation, Congress is the only level of2955government with full and unquestioned authority to establish the safety2956improvements that are needed and to ensure the safety of the rail2957system for American communities, emergency first responders, rail2958workers, and railroad customers. Each Senator on this Commerce2959Committee holds tremendous power to prevent future safety incidents and2960ensure the success of America's railroads operating in our communities.2961Last Congress under the leadership of Vice President Vance and a2962bipartisan group of members of this Committee, the Railway Safety Act2963was advanced, and that unfinished business remains for the upcoming2964transportation reauthorization in the coming months.2965Local Government's Rail Policy Recommendations to Congress2966    To advance the safety and efficiency of the Nation's rail system in2967coordination with road and pedestrian systems, we request the following2968rail priorities be included in the surface transportation2969reauthorization:29702971   Adopt and Fund Expert Recommendations on Rail Safety: The2972        National Safety Transportation Board has provided expert2973        analysis and recommendations to Congress on the East Palestine2974        derailment and many other important and revealing rail safety2975        incidents that should be followed to ensure we respond to the2976        safety gaps exposed and that we make the most of taxpayer2977        investment to have independent safety analysis. Notably, this2978        includes vent-and-burn and bearing failure research, retiring2979        DOT-111 tank cars as soon as possible, maintenance for2980        equipment, communication and preparation for emergency2981        responders to be able to confirm the contents and consist of2982        the train, and much more. Many of these solutions are found in2983        bipartisan rail safety legislation before the Committee and the2984        House.29852986   Invest in Rail Crossing Improvements Across the Nation: The2987        Rail Crossing Elimination (RCE) program has proven incredibly2988        valuable for communities to work directly with railroads to2989        complete rail improvement projects and improve the flow of rail2990        traffic and local transportation traffic at crossings and2991        should be prioritized in a limited funding environment.2992        Planning eligibility is an essential part of the RCE program to2993        develop viable capital projects. Eligibility should also be2994        clarified to ensure that pedestrian access bridges and bridge2995        modifications can be included in these grants. Notably, the2996        Safe Streets program could also include pedestrian rail2997        crossing eligibility or a Safe Crossings program could be2998        established to upgrade more of the 200,000+ rail crossings2999        particularly where there are schools or busy pedestrian areas3000        nearby experiencing too many close calls and deaths.30013002        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]30033004   Provide Long-Term Rail Funding Certainty: Almost all other3005        modes of transportation benefit from the long-term budgeting3006        certainty of Federal Trust Funds--the Highway Trust Fund,3007        Airports Trust Fund, Harbors Trust Fund, and Waterways Trust3008        Fund, but rail does not have access to a Federal trust fund.3009        However, in the IIJA, Congress used advance appropriations to3010        provide multiyear certainty for passenger and freight rail3011        projects in a similar manner to a Federal trust fund. NLC3012        supports creation of a rail trust fund, allowance of rail in an3013        existing trust fund, or continued use of advance appropriations3014        that can ensure multi-year rail investment that aligns with the3015        necessary capital construction demands of infrastructure3016        projects. We also encourage Congress to not waste the3017        investment momentum of the Corridor Identification and3018        Development program, especially in areas where highways alone3019        cannot meet demand and ease congestion and where additional3020        investment can realize more frequent and extended service3021        connections for the heart of the country.30223023   Lower the Cost of Rail Infrastructure Materials and3024        Structures: The costs for rail crossing infrastructure3025        improvements have increased by double even before the recent3026        inflation spike along with often volatile railroad project3027        expenses. Congress should provide innovation and3028        experimentation funding for new and lower cost materials to be3029        tested and incorporated into the rail section of the Manual on3030        Uniform Traffic Control Devices (MUTCD) by encouraging states3031        to use Section 130 program funds or providing additional funds3032        for this purpose. Additionally, FRA should be empowered with3033        investment tools for encouraging innovative technology in rail3034        on a range of warning devices and crossing designs that use3035        human factors science for limiting pedestrian and rail3036        interaction including quick-build pedestrian bridge structures3037        or real-time redirection information like communities in New3038        Haven, IN, and Hattiesburg, MS, are using.30393040   Modernize Safety Data and Blocked Crossing Reporting: The3041        Bureau of Transportation Statistics, FRA, FHWA and NHTSA should3042        be tasked to integrate all Federal and state rail crossing and3043        road safety data and planning efforts into publicly available3044        safety dashboards that solicit public input and allow for3045        improved Congressional oversight and research on transportation3046        safety. Because blocked crossings create safety incidents,3047        train operators should be required to provide FRA a3048        standardized report for all stoppages exceeding an hour in3049        length or alternatively, empower states to collect crossing3050        data and enforce blocked crossing incidents as they would on3051        any other mode of transportation. All rail data that is3052        collected in a standardized manner should be able to be3053        utilized by Federal agencies to inform safety and regulations3054        without exception. All entities operating rail that accept3055        Federal funding should be contributing safety and operational3056        data as requested from USDOT.30573058   Support safety information flow between railroads, city3059        leadership, and local first responders: We urge Congress to3060        ensure that mandated communication flow makes it to the first3061        responder on the scene, not only to the state office, and that3062        official emergency communications channels used for other3063        incidents be utilized in addition to any supplementary tools3064        like phone apps. The proximity, switching and storage of3065        railroad cars containing volatile and hazardous materials in3066        and through urban and residential neighborhoods remains a core3067        concern, and it has become clear that the current list may not3068        be capturing all the hazardous materials moving on our3069        railways. We agree that updating the list of substances to more3070        accurately reflect a full understanding of what is being moved3071        through communities is needed as well as ensuring that3072        communication between railroads, states, local officials, and3073        first responders is clear and efficient.30743075   Establish an FRA liaison for railroads and communities:3076        Railroads are businesses operating in America's communities,3077        and local governments expect all railroads to be good neighbors3078        to the communities they reside in by answering local government3079        questions promptly, hosting emergency contact information for3080        incidents and issues, reviewing blocked crossing and safety3081        data annually with communities upon request, and partnering3082        with communities to utilize Federal grants to eliminate blocked3083        crossings and congestion points in regions. However, a lack of3084        responsiveness and oversight has led to long-standing issues in3085        communities. FRA should be able to convene discussions with3086        railroads on behalf of communities and regularly report back to3087        Congress how convenings result in outcomes and proposed action3088        plans to resolve issues in their states and districts.30893090   Maintain and Modernize Rail Inspections: The safety of the3091        rail system is built on regular inspections by qualified3092        personnel that can be better supported by transportation3093        technology such as sensors, but they cannot replace the visual3094        inspections of the humans that do these inspections. Self-3095        certification on safety can lead to dangerous outcomes as this3096        Committee knows from recent aviation issues. While all3097        processes can be modernized and reliable data can inform risk3098        and therefore inspections, it is of vital safety importance3099        that the frequency of these visual inspections and the3100        qualifications of the workers doing the inspections are not3101        reduced. Any changes should be carefully considered and3102        reviewed by independent expert and not done through waivers of3103        current regulations.3104Infrastructure Investments Pay for Themselves3105    While the 119th Congress will make many tough national budget3106decisions, reducing infrastructure investment from IIJA levels would be3107a $1 trillion dollar economic mistake. The American Society of Civil3108Engineer's 2024 ``Bridging the Gap'' economic scenario analysis3109compares the outcomes of continuing to invest at IIJA levels versus3110snapping back to prior FAST Act levels, and there is a clear3111difference:31123113   as much as $1 trillion-dollar gross economic output lost3114        from major U.S. job sectors (e.g., healthcare, manufacturing,3115        professional services),31163117   237,000 American jobs at stake, and31183119   $550 billion in disposable income for American families3120        lost.31213122    When it comes to Congress making a return on the American3123taxpayers' investment, IIJA-level infrastructure investments can3124deliver nearly $700 every year in savings for American families over3125the next twenty years by continuing a robust program across multiple3126essential infrastructure types like transportation, water and energy.3127    Much like our government deficit, we should not let an unreasonable3128infrastructure deficit grow unchecked and harm our country's future.3129Cities and towns urge Congress to embrace the positive economic impact3130of keeping infrastructure funding at IIJA's levels as the Committee3131negotiates the topline goals of the next package. This is the level of3132funding the American economy requires and the American people deserve.3133    NLC thanks Congress for their continued attention to rail safety3134improvements through the IIJA's historic investment. We ask for your3135continued oversight and leadership to act on these recommendations3136which can improve safety in thousands of communities, and local3137governments look forward to discussing these issues with your3138Committee. Thank you for the opportunity to address the Committee, and3139I look forward to your questions.31403141                                APPENDIX31423143[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]31443145    Senator Young. Well, thank you to Mr. Anthony and to all3146our witnesses for those opening statements. Very thoughtful. As3147I mentioned in my own opening statement, technology is already3148making a big difference in the way we approach safety in the3149rail ecosystem.3150    But I do believe that emerging technologies like artificial3151intelligence and machine learning hold the potential to3152drastically improve our rail ecosystem by increasing safety and3153efficiency, probably in a number of ways that none of us can3154predict at this point. But this hearing, I think, is a great3155opportunity as we prepare our work on Surface Reauthorization3156to improve upon opportunities for the greater voluntary3157deployment of emerging technology.3158    Mr. Jefferies, thanks for your testimony again. You3159mentioned a few applications of technology, but I wanted to dig3160in a little deeper on how exactly you have seen technology like3161automated track inspection, something we have discussed, or3162anything else that is improving safety and efficiency. Can you3163shine a light onto this for us?3164    Mr. Jefferies. Absolutely, Mr. Chairman. Thanks for the3165question. And I think you heard some version of that same theme3166throughout all the witnesses. So, that is a good sign. But3167dialing into autonomous track inspection in particular.3168    So, right now--and I mentioned, you know, our regulatory3169structure has been around for a long time, and we have got a3170lot of 1970s era regulations. We have got regulations from the3171steam engine era that we are operating under.3172    But when it comes to track inspection, we have a very--and3173most of our inspection protocols are very manually focused3174protocol about how and when to inspect our tracks that3175generally requires a segment of a line to be shut down and3176individuals to walk the track using the naked eye looking for3177potential flaws.3178    And that was the best way to do that when the regulations3179were established some time ago. Well, as with every other3180industry, this industry has continued to evolve and develop new3181technology and innovate and find new better ways to do things.3182And so, the principal characteristics of ATI are that one, you3183can affix an autonomous track inspection tool to a revenue3184service train, so you are not taking that line out of service.3185    You are continuously inspecting the line as you are moving3186through revenue service, so you are covering more ground, you3187are doing it more frequently, and you are do it at a higher3188level of sophistication. In early pilot programs at the FRA, 903189percent improvement in defect detection occurred using ATI3190versus the naked eye. That shouldn't be surprising to any of3191us, but that is the fact.3192    And so, our thesis with using ATI as the example is let's3193continue to build the datasets appropriate to prove out--we3194think we have proven it out--but let's take sequential steps to3195further prove out that using ATI in lieu or in addition to a3196manual inspection will result in a higher level of safety.3197    And as that is proven out by the data, then there should be3198a smooth, predictable, objective process for rolling that new,3199better way of doing things into the regulation to meet a3200regulatory requirement, and we think that is through an3201outcomes based approach.3202    So, tell me the performance standard you want to meet, and3203allow me to figure out the best way to meet that or exceed3204that, and we should all get the outcome we are looking for.3205Thank you.3206    Senator Young. Sort of a fundamental regulatory principle3207that many of us have tried to embrace. Don't be prescriptive,3208but instead rely on people's creativity and technology and3209thoughtfulness, who are frankly more connected to these3210challenges than sometimes people in Washington are, to come up3211with a solution.3212    Mr. Gilbertson, Mr. Cumber, do either of you have anything3213to add as it relates to this technology question?3214    Mr. Gilbertson. I just mentioned the interplay between, for3215example, the CRISI program and technology. I mentioned this3216app, but another good example is Rail Pulse. Rail Pulse is a3217consortium of large and small railroads, and it provides a tag3218on rail cars that provide both safety and customer information3219to the user.3220    And we just joined the consortium. It again was seeded by a3221CRISI grant several years ago. And I think that the part that3222appealed to FRA was, again, both customer value and safety3223improvement. We just bought, Senator, 100 new rail cars to3224serve the steel industry in Indiana.3225    We are tagging all those cars with this new technology. And3226it is a quantum leap in, where is that car located? We know3227exactly where it is located. So these are the kinds of things3228that I think are out there. And again, there is an interplay3229between the funding and the technology.3230    Senator Young. Yes. Mr. Cumber.3231    Mr. Cumber. Two short examples, Mr. Chairman. So with3232respect to Brightline and what we are doing, one area where3233evolving regulatory thinking could help is current regulations3234for broken rail detection are emerging as a roadblock for3235higher speed trains.3236    So for example, European high speed rail networks depend on3237preventative measures to address the risk of broken rail3238conditions. And the preventative message--measures include an3239inspection track, an inspection vehicle that checks the track3240every morning before service starts.3241    And so, what you are doing is preventing a broken rail3242condition by using high resolution cameras that monitor and3243detect rail flaws before they can grow in significance. The3244current U.S. regulations require the installation of track3245circuits to identify when a broken rail condition has happened.3246    But we need to change the regulatory thinking and look at3247ways on how we make sure we are preventing the broken rail3248condition from actually happening, not monitoring when it3249actually happens. Second very quickly is, I am on the board of3250Parallel Systems, which is the first company that has designed3251an autonomous battery electric rail vehicle that can travel up3252to 500 miles.3253    We got the first waiver from the Federal Railroad3254Administration, started the pilot in Georgia two weeks ago. And3255for more than a year, we struggled to get permission from the3256FRA to test the vehicle because of antiquated regulations that3257require self-powered vehicles to have bathrooms and3258windshields.3259    And so, this is where technology is leaped ahead of the3260regulations in statute. And so----3261    Senator Young. You don't think a self-powered vehicle needs3262a windshield?3263    Mr. Cumber. Self powered rail car, right. And so, but what3264is interesting about these cars is they are designed to be able3265to monitor wheel bearing temperatures 30 times per second. They3266can stop much quickly than other rail cars. And so, you see3267here the regulation and the legislative regulations having to3268catch up to technology in this reauth process.3269    Senator Young. Well, thank you. Great examples, and we will3270look forward to working with you to try and come up with some3271better outcomes when you interact with FRA in the future. Mr.3272Peters.3273    Senator Peters. Thank you again for each of your testimony.3274And one thing that occurred in each of your testimonies is you3275discussed the importance of the down payment that the3276bipartisan infrastructure law made in our rail infrastructure.3277But what I also heard is that the job is clearly not done yet.3278    The bill certainly provided certainty by giving advanced3279appropriations to key rail programs like CRISI--Mr. Gilbertson,3280you mentioned that in particular in your testimony--and the3281Rail Crossing Elimination Program.3282    This means that in--that for the last few years, these3283programs have not been reliant on yearly appropriations3284process, and I am very concerned about the funding cliff that3285we are approaching with these programs when the BIL expires3286next year.3287    Without advanced appropriations, the only way to avoid a3288huge funding cliff is for our rail network for the yearly3289appropriations budget plus up rail infrastructure funding by3290the billions. That will be difficult in our current budgetary3291environment to do that.3292    So if I could hear briefly from each of you--from each3293member of this panel, what do you believe are the major3294consequences if Congress allows rail infrastructure funding to3295basically run off this cliff? What are the downsides that we3296need to know about? Mr. Jefferies, you want to start, and we3297will work down the panel.3298    Mr. Jefferies. Absolutely, thanks. So certainly, you know3299from talking to us many times, we are very proud of all the3300private investment we put into the network. At the same time,3301we do many a major project with states, communities,3302municipalities, partnering with them to do projects that3303probably otherwise wouldn't be done.3304    And these are projects of national significance, regional3305significance, increased freight flows, increased safety. And3306so, the primary source for the public entities to tap into is3307the Grade Crossing Elimination Program. It is Infra. It is3308Mega. On the short lines, primarily, it is CRISI.3309    And so, my concern if you let those programs be dormant or3310stagnate is that there is going to be a lot of missed3311opportunities to partner with public agencies throughout the3312entire country--you have seen how oversubscribed these programs3313are--to do projects that otherwise may not get done that will3314have real benefits to cities and towns across the U.S., and the3315movement of freight, goods, and people.3316    Senator Peters. Very good. Mr. Gilbertson.3317    Mr. Gilbertson. I would just echo that and say that the3318advance appropriations are really critical. There is a planning3319function, particularly for small carriers, where you have a3320work window that is defined by climate sometimes. I mean, we3321have 4 months where we can do the work.3322    If you miss that cycle, you miss a year. Similarly, there3323is often lining up non-Federal partners. That includes the3324private entity, but also public entities in some cases. And3325again, anything that adds to the complexity of that may mean it3326doesn't happen at all.3327    Senator Peters. Very good. Mr. Cumber.3328    Mr. Cumber. Thank you, Senator Peters. I would mention two3329things. Number one, infrastructure built today is cheaper than3330infrastructure built tomorrow. And so, any delay in being able3331to fund these programs and get the work done, not only causes3332the delay, but rises the cost for them in the future.3333    Second, with respect to Brightline, both ourselves, the3334State DOT, the local communities have tapped into these3335programs for safety programs. And we look at safety from an3336engineering, education, and an enforcement standpoint. And so,3337law enforcement have been using these grants to warn and blitz3338grade crossings. We have all talked about the impact of grade3339crossing safety.3340    They have used these grants to go above and beyond the3341Federal Railroad Administration regulations for crossing safety3342improvements. And they have also used these grants from an3343education standpoint for public service announcements, et3344cetera.3345    And so, my fear is if you pull back on funding, you would3346also see an increase in safety incidents.3347    Senator Peters. All right, we have a real concern. Mr.3348Anthony, the last word.3349    Mr. Anthony. Yes, absolutely. We need certainty funding. It3350helps the local communities and the rail industries to be able3351to plan. It helps us to be to look in ways to create the new3352workforce and what is needed in the communities, towns, and3353villages, especially rural and small communities.3354    It also is important to note that all types of the3355infrastructure programs that we have has a trust fund or other3356long term funding commitments. And if we had that mechanism3357long term for rail industry development and community3358engagement, and local leadership involvement, I think we could3359plan better as a nation.3360    Senator Peters. Great. Thank you, Mr. Chairman.3361    Senator Young. Thank you, Mr. Peters. Chairman Cruz, you3362are recognized.33633364                  STATEMENT OF HON. TED CRUZ,3365                    U.S. SENATOR FROM TEXAS33663367    Senator Cruz. Thank you very much and thank you to the3368Chairman for hosting this hearing. Thanks to the witnesses for3369being here. Mr. Jefferies, let me start with you. Does AAR have3370any recommendations for this committee to stop freight theft?3371For example, would requiring DOT and DOJ to better coordinate3372when they receive information on freight theft help tackle this3373problem?3374    Mr. Jefferies. We absolutely have recommendations, and this3375is an issue that plagues not only the railroads, but the entire3376supply chain. And it is not going away. It is only getting3377bigger. Our adversaries are very organized criminal3378enterprises, strategically hitting high value cargo.3379    So first of all, thank you to you for your support on the3380Combating Organized Retail Crime Act. Thank you to others on3381the Committee as well. We have got very good bipartisan3382support. That bill does three things. It increases information3383sharing across Government. It creates investigatory motivation3384with the feds.3385    And then it really pushes for some enforcement, because3386oftentimes we arrest people, and they are right back out on the3387street. Information, as you mentioned, information sharing is3388key.3389    Coordination, DOT, DOJ, I would throw DHS in there as well3390because they are kind of at the tip of the spear with a lot of3391that. Absolutely, we support it. Thank you for your support,3392and we want to keep working with this committee to address this3393problem.3394    Senator Cruz. Excellent. Very helpful. Mr. Gilbertson, the3395Department of Transportation under Biden added both DEI and3396climate change related criteria to the grant approval process,3397which Congress did not include in the authorizing statutes.3398    For example, the Biden DOT thought of the Consolidated Rail3399Infrastructure Safety Improvement, or CRISI grant, as a program3400to ``explicitly address climate change, gender equity, and3401racial equity,'' and scored applications based on how well the3402applicant met these criteria. In fact, the Biden DOT required3403applicants to address ``equity'' as a condition of receiving3404construction funds.3405    Mr. Gilbertson, are you aware of the challenges short line3406railroads faced when applying for grants requiring such3407criteria, criteria that were unrelated to the merits of the3408actual project?3409    Mr. Gilbertson. Senator, I previously mentioned that the3410CRISI grant approval process has been unnecessary long in our3411opinion. I am not aware of the internal decisionmaking of how3412FRA has weighted these factors, but as a matter of policy, we3413would ask that the FRA limit its evaluation to the statutory3414criteria.3415    Senator Cruz. Asking that the Government follow the law3416seems a pretty reasonable request from American citizens, and3417one would--I for one am grateful we now have an Administration3418willing to follow the law instead of the preceding3419Administration. Mr. Cumber, you talked about the acquisition of3420right of way as a major challenge to expanding Brightline in3421Florida.3422    Brightline West is taking a creative approach by working3423with the State Departments of Transportation to build track3424along existing right of way. If Congress wanted to incentivize3425greater competition in the inner-city passenger rail sector,3426what should we be thinking about regarding right of way3427acquisition? Get your microphone.3428    Mr. Cumber. Great question, Chairman Cruz. There are a3429couple ideas that we have. The first is using the categorical3430exclusions to allow projects to move forward when they are in3431existing transportation corridors would significantly reduce3432the time it would take to implement projects.3433    A normal kind of arc of a project is if you think about 33434years of predevelopment work, 5 years to construct, 3 years to3435get to stabilization, any extra time it takes to get that3436environmental process completed makes the project sometimes not3437financially feasible.3438    Second, when it comes to the grant programs, our view is3439give the private sector the eligibility to apply for all the3440different USDOT and FRA grant programs. And I said that in my3441oral testimony. We just want all passenger models to be treated3442equally. Amtrak can compete.3443    State sponsored systems can compete. Privately operated3444systems can complete. And if we have a level playing field, we3445think the benefits of getting competition into the passenger3446rail industry will happen.3447    Senator Cruz. And let me follow up. What could Congress do3448to help facilitate more private sector participation to promote3449competition in inner city passenger rail in this country? And3450Mr. Jefferies, I am interested in your thoughts on this as3451well. But Mr. Cumber.3452    Mr. Cumber. So, you know, I strongly believe obviously3453competition makes everyone better. And there is an association3454out there that--it is the Association for Innovative Passenger3455Rail Operations, and what they have been pushing for is when3456long distance systems are being contemplated using Federal3457funds, that they would have to be competed as opposed to Amtrak3458being the default operator. And that is something that I think3459in the reauthorization process the Committee could consider.3460    Senator Cruz. Mr. Jefferies.3461    Mr. Jefferies. Yes, I think competition is good on that3462front. I also think getting all the stakeholders together3463before you launch on a project is really helpful because3464oftentimes it involves a state, a municipality, a private3465entity, a host railroad perhaps. And getting everybody together3466before you roll out on new passenger projects results in a3467better outcome at the end of the day.3468    Senator Cruz. Thank you.3469    Senator Young. Well, thank you, Senator Cruz. Ranking3470Member Cantwell, you are now recognized for questions.3471    Senator Cantwell. Thank you, Mr. Chairman. Mr. Gilbertson,3472these infrastructure investments are critical for competition3473for our many different agriculture products that we grow and3474export.3475    As I mentioned in my earlier statement, a lot of it comes3476from the Midwest to Asia through our ports. Port of Longview3477and Kalama, Vancouver exported 9 million tons of corn, 8 metric3478tons of wheat, 7 million metric tons of soybeans.3479    Again, $6 billion, so we wanted to get there. These--how do3480investments in the rail crossing and short line help improve3481that competitiveness for farmers? And what happens if we lose3482the billion dollars of investments that we have made so far?3483    Mr. Gilbertson. Well, the short lines are critical to that3484agricultural supply chain. And as you know, the state-of-the-3485art is a grain car that will hold 100 tons, a 286,000 pound3486car. And some of the early--some of the short line spin-offs3487could not handle a car of that weight.3488    So that essentially precluded these railroads from3489participating in that supply chain. We have an example of our3490Northern Lines Railway, which is in Minnesota, originates grain3491shuttle trains that go to the Pacific Northwest ports.3492    And that infrastructure had to be improved to handle those3493heavier cars. Had we not done that, we would not be a3494participant in that business to your ports.3495    Senator Cantwell. So, if we didn't have the $1 billion, we3496would be less competitive?3497    Mr. Gilbertson. Correct.3498    Senator Cantwell. OK. I mean, I could be advocating that we3499should double the number, because that is--I see some nods in3500the audience. Because that's how much the competition is, and3501that is what we have to do to get product to their destination.3502    And so, I am a big fan of increasing infrastructure3503investment. That is one of the reasons I am happy that we are3504having this hearing because we know what we have delivered so3505far. We know that it helped. But yet we are in this environment3506where we are challenged.3507    Tariffs, cost on infrastructure, all that makes it--so3508let's at least get the infrastructure investment right. Mr.3509Anthony, we have one city, Washougal, which is one of the3510busiest BNSF lines in the Nation. Over 30 trains transporting351150 percent of all rail freight that moves through the state of3512Washington basically bottlenecked in this town.3513    And because of that, literally traffic was backing up on3514highway 14. It was just ridiculous. So, we ended up getting3515money to improve that, and these improvements have made things3516a lot better. But we know that we have a demand for this at-3517grade crossing problem.3518    And what do you think we should do to increase--I mean, I3519think you could basically increase it three times, and probably3520still have a very good economic impact. I don't know what other3521people say about this. Everybody is affected by it.3522    Mr. Anthony. Well, first of all, I guess that is a good3523problem to have in some ways for some communities, but it has3524to be planned and coordinated with the local governments within3525the region.3526    As it relates to the safety concerns that we would have on3527that is engaging the community to make sure that the first3528responders and the medical professionals and the families that3529are trying to take their kids to school, that they don't have3530two to three, four hours blocked intersections, which really3531has impacted the lives of residents in and out of the region.3532    The stories that we are hearing of residents crawling3533through trains to get to their jobs, having to go two miles to3534another medical facility because they can't get to the existing3535one. So all local government is saying is that we want to3536partner with the rail industry to make sure that the artificial3537intelligence and other information that they are using to plan3538includes access and information loaded in that system from3539local communities. So I--we want say----3540    Senator Cantwell. Do you support more money for--?3541    Mr. Anthony. 100 percent.3542    Senator Cantwell. OK. I just wanted to clarify that3543because----3544    Mr. Anthony. 100 percent.3545    Senator Cantwell. I need you to----3546    Mr. Anthony. Yes, we support more money.3547    Senator Cantwell. I mean, I have talked about this issue so3548long in my state that someone visiting one of my neighbors3549stopped me on the street and said, do you know what happens in3550California? I said, no, what? And they said, literally, the3551trucks can't deliver the product to the port, and they are3552outside, the train is blocking. Literally, people will get out3553of their truck and walk to go put their timecard in to show3554that they showed up on time and then walk all the way back and3555get back in their truck.3556    So this is--you know, beyond this community problem, this3557is about us being very competitive. We worry about this because3558we have Prince Rupert, Vancouver, British Columbia, and3559somebody can make another choice. So this is about making this3560investment.3561    So, thank you, Mr. Chairman. I do like--I just will say for3562the record, I like your comments on full understanding of what3563is being moved through the communities. That requirement of3564communication between city leadership, and railroads, and first3565responders is critical. So, thank for that testimony.3566    Senator Young. Thank you, Senator Cantwell. Senator Moreno,3567recognized.35683569               STATEMENT OF HON. BERNIE MORENO,3570                    U.S. SENATOR FROM OHIO35713572    Senator Moreno. Thank you, Mr. Chairman. So Mr. Jefferies,3573you talked about modernization. We will go back to that.3574Obviously, it is a theme that we are hearing over and over3575again this hearing. You said the regulations were mostly3576designed in the 1970s, is that correct?3577    Mr. Jefferies. At least, in some cases, if not before and3578since. But, you know, we are a legacy industry with legacy3579regulations.3580    Senator Moreno. Gotcha. So we haven't really done much in3581Congress in that period of time?3582    Mr. Jefferies. I think Congress has done and has tried to3583do a lot of things. A lot of it has been around funding. You3584know, the challenge is I think you often try to regulate for3585the current condition.3586    And so, for example, you know, I talked about autonomous3587track inspection. That is today's technology. But I would be3588hesitant to say, oh, let's say that you have to use ATI to do3589track inspections because that locks you into today's practice.3590    So that is why we are focused on outcomes based, not inputs3591based. Where do we want to go, and let's continue to evolve how3592we can best get there.3593    Senator Moreno. Actually, it would seem like we may be3594overdue for some regulatory changes since the 70s was a decent3595period of time ago. You talked about the Highway Trust Fund.3596Just comment for the record for the people watching, how does3597that interplay with rail service?3598    Mr. Jefferies. Sure. So, our biggest partner, also our3599biggest competitor, is the commercial trucking industry. And we3600have actually worked closer together than we ever did, but we3601are also highly competitive in certain markets.3602    And so, as you have heard me say, we are very proud of the3603fact that we invest almost entirely on our own dime back into3604our network, where truckers operate over infrastructure paid3605for by the Highway Trust Fund.3606    And that is all well and good when, you know, those fees3607cover the cost of the highways themselves, but what we have3608seen is more and more and more shortfalls so that General Fund3609transfers are required to fund the highway network.3610    And when that happens, that is a subsidy to what our3611competitors are paying into the infrastructure they operate.3612And so, all we are looking for is a competitive playing field3613where each side puts in the appropriate amount of cash over the3614infrastructure that it operates.3615    Senator Moreno. That makes a lot of sense. So for example,3616if the Highway Trust Fund were to run out of money, which it3617seems like that is something we have been talking about for a3618long time, that is problematic, obviously, right,3619understandably----3620    Mr. Jefferies. Absolutely.3621    Senator Moreno. Right. So if you have vehicles on the road3622that are not paying gas tax at all, that is a problem.3623    Mr. Jefferies. Yes.3624    Senator Moreno. So, if you were to create legislation or3625Federal policy that bans internal combustion engine cars, would3626that increase the Federal Highway Trust Fund or decrease?3627    Mr. Jefferies. I think that would be problematic to say the3628least.3629    Senator Moreno. That would be problematic. Well, the3630previous Administration wanted to ban ICE cars of as of 2035.3631Fortunately, we were able to get rid of that through a3632Congressional review act a couple weeks ago. Huge deal.3633    We no longer have EV mandates. Would it make sense though3634if we could raise money into the fund to say, hey, we are going3635to charge maybe a $500 one-time fee for battery electric3636vehicles since they are paying zero gas taxes? Would that be3637not only good for the industry, but just fair for people who3638are paying gas tax versus people who aren't?3639    Mr. Jefferies. I think whether it is autos, or trucks, or3640any other form of transportation used in the highways, we think3641it is appropriate that they pay for the infrastructure wear and3642tear they cause.3643    Senator Moreno. Gotcha. Well, hoping that in the big3644beautiful bill we can put in a $500 one-time fee for battery3645electric vehicles, $250 for hybrids, or raise over $12 billion3646over the budget window and start addressing some of that3647shortfall.3648    So, I urge my colleagues to consider making that happen. I3649guess--question to you Mr. Gilbertson. In your mind, what is3650holding back innovation in your industry? What is the main3651impediment to innovation?3652    Mr. Gilbertson. Senator, it is a good question. I am not3653sure there is a clear answer. I mean, there is a financial3654component to it. There is a regulatory component. And there is3655innovation occurring, as I mentioned. It is powerful. It not3656only improves safety, it improves our offering to our customer.3657And we absolutely need to do it. When you know the delivery3658minute of your pizza, but we can't tell you the delivery day of3659a rail car, we have a problem.3660    Senator Moreno. I am very aware. When I was in the retail3661automotive business, we would of course always be delayed by3662the cars that were sold. And the cars that we didn't want3663arrived immediately and on time. So, question for you, Mr.3664Cumber. I want to emphasize, there is clearly a difference3665between freight--and the Government doesn't own any freight3666trains, correct?3667    Mr. Cumber. Not that I am aware of.3668    Senator Moreno. Gotcha. OK. Thank God we lose hundreds of3669billions of dollars there. But we do own--we are responsible to3670fund Amtrak, correct?3671    Mr. Cumber. Correct.3672    Senator Moreno. So I grew up in South Florida, so you don't3673have to ask me to visit. Although this time of year it is3674insanely hot, even by D.C. standards. But if I were to go from3675Miami to Orlando, I have two choices for rail. I can go on3676Amtrak or go on Brightline. What is the average speed that you3677travel between Miami and Orlando?3678    Mr. Cumber. Our trains go about 110 miles an hour.3679    Senator Moreno. And what is the average speed of Amtrak?3680    Mr. Cumber. I believe it is somewhere in the 40 to 50 mile3681per hour.3682    Senator Moreno. Gotcha. So you can get to Miami or Orlando3683in about 3 hours with Brightline, seven and a half hours on3684Amtrak.3685    Mr. Cumber. And if I could add one more thing to that. I3686believe Amtrak runs twice a day. We run 36 trains, one-way3687trains between Miami and Orlando. So the frequency is a big3688difference too.3689    Senator Moreno. Gotcha. I know I am over time, so I am3690going to cut to the chase of my line of questioning, but if you3691look at the stations, the modern cabin, I am not trying to do a3692commercial for Brightline, but it is night and day. It reminds3693me of a Russian car from the 70s versus a modern vehicle today.3694    Why are we even in this business? Why are subsidizing or3695owning passenger rail in America when we have absolutely--we3696are terrible at it. The Government is objectively really,3697really bad at running that. If we had Government airlines, holy3698lord, can you imagine what that would look like?3699    Why don't we just get out of that business completely, let3700the private sector run it? Is that something that--I would ask3701all four of you just to quickly comment. Does that seem like a3702reasonable approach to just say we have given it the freshman3703try, like we have, I don't know, 60, 70, 80 years.3704    It has not worked. We have lost hundreds of billions of3705dollars, and objectively provide terrible service. Going 403706miles an hour from Miami to Orlando is insane. Nobody wants to3707answer that question.3708    [Laughter.]3709    Mr. Anthony. Well, Senator, I will just say I am from South3710Florida, too. I am from Belle Glade, Palm Beach County,3711Florida, and I have ridden Brightline. I think a public-private3712partnership, local leaders are not opposed to that. They just3713want partners. And I would be very open to our members3714considering that.3715    Mr. Jefferies. I would just add that, you know, it probably3716depends on the situation, right, because--and what the3717motivation is. Is it a public service or is it a private3718enterprise? And in certain parts of the country, where Mr.3719Husain is operating, for example, and I bet he wants to expand3720to other areas, there is lots of opportunity for private3721enterprise to thrive.3722    Congress has made the decision that it also wants to3723provide other services that are going to be inherently money3724losing. And as long as that is the point of view, then that3725service needs to be provided as well. So it is probably not an3726either/or. It is probably a situational situation.3727    Senator Moreno. Yes. The only thing I would say is that3728providing air travel is also a public service, but there is no3729Government-owned airline for good reason. So with that3730Chairman, I am over my time, but thank you for giving me the3731opportunity.3732    Senator Young. Thank you, Senator. Senator Lujan, you are3733recognized for questions.37343735               STATEMENT OF HON. BEN RAY LUJAN,3736                 U.S. SENATOR FROM NEW MEXICO37373738    Senator Lujan. Thank you, Mr. Chairman. Mr. Jefferies, as3739you may be aware, I have pushed for robust funding and support3740for Amtrak to improve and expand our Nation's long distance3741rail network. I have heard story after story about horrific3742tragedies that should have been able to be prevented, delays,3743cancelations.3744    Now, in 2023, the Southwest Chief had the second lowest on3745time performance rate of all the long distance routes, getting3746customers to their destinations on time only 34 percent of the3747time. And in 2024, we saw modest improvement to 45 percent. As3748you know, this is not just an issue for us in New Mexico, my3749colleagues in Kansas, and in other states. It is generally3750Senator Moran that will pull us all in to have conversations3751about the Southwest Chief as well.3752    Many Amtrak routes like the Southwest Chief suffer poor on-3753time performance in part because they operate primarily on3754tracks owned and dispatched by freight railroads. Multiple3755members of AAR, including Norfolk Southern and Union Pacific,3756have been the focus of Federal investigations due to their role3757in Amtrak's poor on time performance.3758    My question is, how is AAR pushing its members to ensure3759Amtrak has preference over freight transportation as required3760by law?3761    Mr. Jefferies. Thank you for that question. And there are3762many aspects to it. So, you know, Congress some time back3763required that the DOT create regulations defining on-time3764performance. And the DOT did that a few years ago.3765    And following that, the host railroads and Amtrak got3766together and said, OK, given that this is the world we are3767operating under, let's figure out the schedules that make3768sense, because some of those schedules hadn't been updated for3769decades. And so, almost every route has now an agreed upon3770schedule so that the host and Amtrak can at least--are3771operating from the same terms of what is on time, what is not.3772    And while we have seen a lot of progress in a lot of areas,3773I just got a presentation from the Amtrak president last week,3774certainly long distance routes and the Southwest Chief in3775particular, we haven't seen the progress that, you know, we3776have seen in the State-supported routes, for example. It is3777incumbent that we provide the appropriate level of preference.3778    Now, preference means that--you know, I think there is3779different points of view. Preference, in our view, means3780reasonably providing Amtrak preference to move ahead. So3781pulling over trains to allow for Amtrak to proceed. What it3782doesn't mean is kind of a Cadillac motorcade where everything3783is cleared out and everything stops while the Amtrak train3784moves forward. So there is a balancing act there.3785    We are not where we want to be, not where we need to be,3786especially with long distance. So, the work continues. I am3787encouraged by the trend lines going in the right direction. Not3788nearly as steep, as I know folks like yourself and Mr. Moran3789and others would like to see, and certainly aware of that. So3790we have got to keep working.3791    There is probably some infrastructure investment required3792in certain areas to build out additional sitings, et cetera,3793especially in rural areas that have single lines to allow for3794trains to get out of the way. But we have got more work to do,3795and we will keep working it.3796    Senator Lujan. Appreciate that. Mr. Anthony, last year, a3797BNSF railways freight train derailed near Manuelito, New Mexico3798near Navajo tribal lands. Two of the train cars caught fire,3799which caused the evacuation of nearby families.3800    However, authorities were significantly delayed in alerting3801nearby Navajo members. In your written testimony, you mentioned3802a need for improvement in information sharing between3803railroads, city leadership, local first responders, and I would3804add tribal authorities to the list.3805    Can you speak more about specific initiatives that could3806help get information out faster to those impacted?3807    Mr. Anthony. Thank you, Senator, for that question. We3808truly believe that local government, the first responders, the3809medical professionals, should be as a part of the communication3810plan for the railroad industry. We think that as apps are3811developed, as AI is utilized, local leaders need to be at the3812table.3813    What we are seeing, though, is again where communities are3814being economically impacted in a negative way because sometimes3815two to six hours of a blockage has caused families not to be3816able to get to work and medical responders not to be able to3817support the lives of those in that community.3818    And so, we are saying that it has to start with local3819communication, local engagement, because communities are being3820economically destroyed because many of the rail systems aren't3821communicating with them--and tribal communities.3822    Senator Lujan. I appreciate that, sir. Mr. Cumber, I3823appreciate the work your company has done to expand railways to3824multiple communities in Florida, Nevada, and California.3825    However, I do have a concern that rapid expansion is done3826sometimes at the expense of safety. On average, Brightline has3827more than 11 times the incidents of Amtrak, and over 4 times as3828many that led to injury or death.3829    What is your company doing to improve safety on your3830railroads, and what promises can you make to this committee3831going forward?3832    Mr. Cumber. Thank you for that question, Senator. So safety3833is and always will be the number one priority for Brightline.3834Trespassing activity has been the root cause of each and every3835incident along our corridor.3836    Our Florida project has 331 active grade crossings, and we3837are in the process of making improvements to every single one3838of those crossings. Both the State DOT, and local communities,3839and ourselves, and the Federal Railroad Administration have3840come together where there will be $65 million in improvements3841made over the next 2 years at those crossings.3842    That is possible because of the grant programs that this3843committee has created where we have been able to partner and3844make those improvements. I will tell you our Brightline West3845project will have zero grade crossings because we are in the3846median of the highway.3847    And so, any future project that Brightline looks at, we are3848going to first be looking at right of way options to create3849sealed corridors instead of having corridors where there would3850be a significant number of grade crossings.3851    The other thing that is important to mention is, I am not3852going to sit here and say that the initiatives that we have3853come up with raised medians, you know, exit gates, delineators3854in the highway are the final solution. We need to work together3855to find new ideas. And we at Brightline have an open door3856policy that we will meet with any company that has a technology3857or physical solution to stop trespassers from coming into the3858corridor.3859    And I want to commend the Federal Railroad Administration,3860and our State DOT in Florida, who have said that if we find3861programs that we can pilot in the corridor, they will partner3862with us to fund those.3863    And so, you know, I want to make that very clear that for,3864you know, people that are even watching this, we have an open3865door policy that, you now, that technology is one of the3866solutions, but there is also probably some physical solutions3867out there as well.3868    Senator Lujan. Appreciate that. Thank you, Mr. Chairman.3869    Senator Young. Senator Kim, you are recognized for3870questions.38713872                  STATEMENT OF HON. ANDY KIM,3873                  U.S. SENATOR FROM NEW JERSEY38743875    Senator Kim. Thank you, Chair. Mr. Anthony, I just want to3876pick off where my colleague left off. You talked about some of3877the problems that come with, you know, delays and other3878challenges--workers not being able to get to work. I mean, we3879have a lot of problems with that in New Jersey.3880    You know, a lot of difficulties on that front. And I think3881just in general with the Northeast Corridor, I just wanted to3882ask you, do you agree that the Northeast Corridor is critical3883for our Nation's economic strength and security?3884    Mr. Anthony. Yes.3885    Senator Kim. Now, I guess I would just like to think3886through, what are the types of steps that we need to do to be3887able to further ensure that? And one of the things that we3888tried to do here in Congress was through the bipartisan3889infrastructure law. And I guess, I just wanted to ask you to3890share how that law supported much needed updates to the3891Northeast Corridor and why those investments are crucial for3892our rail system?3893    Mr. Anthony. Well, for local communities to be able to have3894a rail stop in their community, it means a lot. It means more3895jobs, more innovation, more money in the communities for3896investment and reinvestment. Small businesses prosper because3897of a hub being created and a stop in that community.3898    But it also means in some ways that they need to be more3899engaged in the planning and the stop--in the rail stop in their3900communities. And that is what we are fighting for as local3901leaders. It is just making sure that we do recognize that it is3902important, but it also has to be planned and developed within3903our community, and we need that support.3904    Senator Kim. And have it thought through with a sense of3905strategy, right. A sense of coordination and purpose. Do you3906feel like the bipartisan infrastructure law was successful in3907trying to start that process for another generation of changes?3908    Mr. Anthony. We do. We do think that, and we have been very3909supportive with USDOT to make sure that it is implemented3910effectively in communities.3911    Senator Kim. But clearly not--you know, clearly the work is3912not done though, right. Like there is more that we need to3913continue on to. And in particular, I just wanted to ask, you3914know, we have tried to engage in advanced appropriations3915through the bipartisan infrastructure law for entities like3916Amtrak to supercharge our capital investments like state of3917good repairs. Are those the types of things that you are hoping3918that we are continuing forward to be able to help support some3919of these advancements?3920    Mr. Anthony. Yes, we need continued funding.3921    Senator Kim. When I think through the challenges that we3922face, for instance, in New Jersey, and we were entering into3923hurricane season, we have had a lot of disruptions in the past3924when it comes to transit and whatnot due to the storms.3925    And you know, across this country, we have a lot of3926different issues that are out there. How important is it for us3927to think through climate resilience when it comes to what comes3928next for a strong and effective rail system, Mr. Anthony?3929    Mr. Anthony. I think sustainability, climate resistance has3930to be considered as a part of any plan for rail investment and3931rail development. And our local communities are working with3932the rail industry to be able to bring those types of issues3933into the conversation.3934    Senator Kim. Mr. Jefferies, do you agree with that? I mean,3935when we are trying to think through how to be able to move this3936forward, I am trying to think through how are we prioritizing3937the need for that resilience, especially when we worry about3938disasters and other types of means.3939    Mr. Jefferies. Sure. From the freight perspective, you3940know, one of the things we are most proud of is following a3941hurricane, for example, we are often the first mode that is3942back up and running. But we are investing across the network in3943particularly sensitive areas.3944    Think about, you know, Louisiana Basin, for example, to3945raise tracks, literally, increase the amount of bowels so3946tracks are higher off the ground, so when we do experience3947flooding events, we are allowed to continue to provide service3948to customers and communities in which we operate.3949    And that is a long term project. When you are thinking3950about the NEC, New York in particular, obviously those3951infrastructure challenges are a completely different animal.3952But as you make these generational investments to replace3953Portal Bridge, for example, to build in the new tunnels, that3954has got to be a consideration, right.3955    You have got to have a more robust product out there that3956allows the passenger side to continue to operate in rough3957conditions, or get back online more quickly, and have that3958infrastructure hardened, especially the electronic side of it3959all so that it doesn't get knocked out for an extended period3960of time.3961    Senator Kim. Yes. I mean, that has been part of what we3962were thinking about with the Gateway Project and others, trying3963to make sure this is resilient given what we said about the3964critical nature. Mr. Jefferies, are there other types besides3965raising the rails and other type of resilient steps you think3966we need to be prioritizing as we are thinking about it here in3967the Senate?3968    Mr. Jefferies. I mean, I think about it as operational3969resilience and infrastructure resilience. So operationally, you3970know, the better information we have as far as weather events,3971et cetera, the better we can plan and pre-position assets. We3972are certainly not the airline industry.3973    It takes more than one night to reposition things, but we3974can take steps in advance. Get, you know, our assets out of3975harm's way so that we can bring them back in shortly after. On3976the investment side, you know, it is really about, I think,3977partnering with communities to ensure what their needs are, and3978identifying those high impact projects, and making sure you3979reduce the amount of time or the amount negative impact so that3980we can continue to serve communities.3981    Because it is immediately during and after major weather3982events that communities are in the most need, and often the3983rail is the best way to get in there, so we want to make sure3984we can continue to do that.3985    Senator Kim. Great, thank you. And with that, I will yield3986back.3987    Senator Young. I will welcome a second round of questions3988for those members that want to ask them. I have one theme I3989would like to pick up on, and that is overly prescriptive3990rules, outdated rules, things that inhibit innovation and3991operational capacity.3992    If I were to give you 30 seconds, Mr. Jefferies and Mr.3993Gilbertson and Cumber, you may have thoughts along these lines3994as well. But 30 seconds, are there any specific or outdated3995rules or regulations you would just like to underscore the3996importance of revisiting or potentially even eliminating to3997facilitate more innovation in the industry?3998    Mr. Jefferies. Well, we hit on track. Signal inspections,3999locomotive inspections, break inspections, the list goes on.4000That is basically every aspect of our operations which is done4001in a backward looking, manual way. And there should be nothing4002controversial about looking forward in a regulatory structure.4003    Again, we are talking about outcomes based regulations that4004advance safety in a data driven way. That should be very4005straightforward. And so, we are looking across the regulatory4006spectrum. And the way to do this--if you give me one second,4007the way to do this is by effective pilot and waiver programs4008that are judged clearly and transparently, allow you to build4009data sets.4010    Last Administration, we weren't even getting programs4011rejected. We just weren't getting answers. So much so that we4012had to go to court to get an answer on six different requests,4013and then they were promptly granted. We didn't even have to4014litigate because it was politically motivated. It was not a4015safety issue. Thank you.4016    Senator Young. Obviously unacceptable. Mr. Gilbertson4017    Mr. Gilbertson. I would just echo the waiver process is4018crucial. It permits us to experiment in a narrow defined, data4019defined way. If it works, let's share that information. If it4020doesn't, we are not changing the system.4021    Senator Young. Yes. Thank you. Mr. Cumber, do you feel like4022you have anything to add here? Yes, sir.4023    Mr. Cumber. The other thing I would add is the waiver4024process that everyone has mentioned, I think there needs to be4025clear timelines behind it. And right now when a waiver is4026requested from FRA, there is no prescribed timeline as to when4027it needs to be decided.4028    Senator Young. Thank you. Mr. Anthony.4029    Mr. Anthony. I would say we are supportive of streamlining4030the process for infrastructure projects as long as it does not4031neglect the environmental impacts.4032    Senator Young. Excellent. Mr. Moreno--Senator.4033    Senator Moreno. So just quick, quick final round of4034questions. I think it bridges, Mr. Chairman, to what I think we4035can have as our next hearing. So Mr. Cumber, you get--4036obviously, I am going to give you an obvious question.4037Passenger rail, no matter how well it is done, no matter robust4038the private sector creates, you are not going to solve the4039problem of everybody being able to get from point A to point B4040where they need to go, correct?4041    Mr. Cumber. Correct.4042    Senator Moreno. So there is this great business called the4043automobile business that allows you to do that. So Mr. Anthony,4044I am going to go back to you because you are the one person4045that is looking at more of a wider aperture here because for4046you, I think you would agree that the big priority has got to4047be you got to connect jobs and people. Really important. Do you4048agree? Want to expand on that?4049    Mr. Anthony. Yes, I do think that is very important, and4050that is why we think there should be a connection to the4051transit systems, whether it is the airport, whether it is rail,4052whether its Brightline.4053    And that mid-connection is important because it is used for4054families to be able to have quicker access to their kids,4055schools, travel. So we are very supportive of that because it4056does create job and opportunities for communities.4057    Senator Moreno. But a good old-fashioned automobile is what4058really allows you to go from point A to point B very4059efficiently. And if you look like in cities like Cleveland or4060Columbus or Cincinnati, where there is massive teen4061unemployment, being able to have an affordable way to get to4062work is really important because you don't always know where4063the jobs are going to be.4064    Sometimes they end up being in the suburbs and there is no4065mass transit connection. And there is massive disparities when4066somebody has got to take four or five busses or a train to get4067from point A to point B, to get to work. Like something4068happens. They show up late. They end up being fired. I mean,4069those are problems that you see every day, right.4070    So one of the things that I am concerned about, Mr.4071Chairman, this is where I was getting to, is in the last 44072years, the average price of an automobile went up $8,000--4073$8,000. The average price for a car is now $50,000. There is4074virtually no new cars sold that are less than $25,000.4075    The average used car is now in the $20s. I used to be in4076the car business, and we would have a part of our website that4077says, cars that you can buy under $10 grand, which are the cars4078that those teenagers need to get into the workforce. That4079doesn't--there is no such--it is gone. There is not even cars4080under $20,000 that are reasonable to get.4081    And I think, Mr. Chairman, one of the things I am getting4082to hear is I would urge you to have--let's have a hearing to4083talk about what we can do here in the Federal Government to4084stimulate an ecosystem that allows this country to go back to4085be able to make affordable automobiles for working Americans4086and for families.4087    Because if you look at the average car payment--Mr.4088Anthony, I will have you end with this. How many people do you4089know that are working Americans that can afford a $650 a month4090car payment?4091    Mr. Anthony. Wow, that is pretty high, Senator. I can't4092give you a number on that.4093    Senator Moreno. Pretty low, right?4094    Mr. Anthony. Pretty low, yes.4095    Senator Moreno. So, we are excluding a huge portion of the4096population from affordable transportation and urge us to have a4097hearing on that, what we can do. And it is--I will give you the4098headlines, it is over regulation by the Federal Government,4099obscenely stupid mandates, features on automobiles that are4100totally unnecessary that is driving up the price of cars.4101    You know, there has been a lot of talk about this4102bipartisan infrastructure law that passed. In that law, there4103is a detection device that is going to be required on4104automobiles to detect whether you are impaired. I don't even4105drink.4106    Why in the heck am I paying for a detection device in my4107automobile to see if I drank alcohol? That adds enormous cost4108to the price of automobiles. So we really, I would just urge4109you again, I don't think if I have made my case clear, that we4110should have a hearing on the price of automobiles.4111    Senator Young. I thank you Senator Moreno. And I would say4112I too have been in the automobile business. In fact, I am very4113much in it right now because I have four teenage children and I4114feel deeply in the auto business, so I have every incentive to4115make sure that we adopt the most--the smartest policies for4116middle class families when it comes to this.4117    And thanks so much for your leadership on this issues.4118Senator Markey is recognized to ask questions.41194120               STATEMENT OF HON. EDWARD MARKEY,4121                U.S. SENATOR FROM MASSACHUSETTS41224123    Senator Markey. Thank you, Mr. Chairman, very much. And I4124am glad this committee is kicking off its Surface4125Transportation Reauthorization process with a hearing about4126rail. The bipartisan infrastructure law provided a down payment4127on modernizing our rail system.4128    This law has helped jumpstart exciting projects across the4129country, including the long held dream of West-East rail across4130Massachusetts. But this work is only just leaving the station.4131We must continue to invest in rail to advance many of these4132critical projects.4133    Mr. Anthony, do you agree that the next Surface4134Transportation bill should continue the infrastructure law's4135significant long term funding for rail?4136    Mr. Anthony. Yes, sir.4137    Senator Markey. Thank you. Do you agree that pulling back4138on rail funding could discourage communities from launching4139future ambitious rail projects due to concerns that Federal4140support is unreliable?4141    Mr. Anthony. Yes, sir.4142    Senator Markey. So as we make these transformative4143investments in our rail system, it is crucial that we invest in4144rail electrification. Mr. Cumber, your company is currently4145building a high speed electrified rail line between Southern4146California and Las Vegas. What are the specific benefits of an4147electrified rail line for this project?4148    Mr. Cumber. Thank you, Senator, for that question. So there4149is definitely a need for electrified trains in the U.S., and it4150is for several reasons. Number one, for the system that we are4151building at Brightline West, you need the acceleration. They4152are a lighter weight so you can get to the 200 mile per hour4153speeds.4154    You have the horsepower and torque as well and you can take4155larger grades. And so, when you are going through geography4156like the Cohoan Pass, you would not be able to do that with a4157diesel train or a hydrogen powered train.4158    Senator Markey. Yes. So, higher speeds, faster4159acceleration, better torque to traverse difficult terrain. It4160also cleans our air and eliminates emissions and delivers a4161better rail system overall. And that is why I am soon going to4162be reintroducing my All Aboard Act, which would invest over4163$200 billion over 5 years in America's rail network.4164    The bill would build on the infrastructure law by providing4165billions to build and operate high speed rail, expanding4166existing passenger rail service and improving rail safety. And4167we would also invest in electrifying the highest traffic4168corridors of our Nation.4169    The All Aboard Act sends the message that our investment in4170rail is picking up speed, not hitting the brakes. And I look4171forward to working with the Committee on this issue during the4172reauthorization process.4173    So, let's turn to workers who keep our trains running. Mr.4174Cumber, although Brightline has an excellent relationship with4175its 13 rail unions out West, in Florida, Brightline's4176operations have been starkly different. In Florida, Brightline4177has aggressively sought to overturn a successful organizing4178drive by its operation workers under the Railway Labor Act.4179    Brightline argues that it is not subject to the Railways4180Labor Act and therefore its workers cannot organize under the4181law. That is unacceptable. Under Federal law, any company that4182accepts a grant from the Consolidated Rail Infrastructure and4183Safety Improvement Program is subject to the Railway Labor Act.4184    Mr. Cumber, did Brightline accept that grant for its4185Florida line from the Consolidated Rail Infrastructure and4186Safety Improvements bill?4187    Mr. Cumber. Thank you, Senator. So, yes, we did. And I want4188to be very clear that Brightline fully supports the right of4189our teammates to seek union representation. We simply believe4190in this case that the National Mediation Board did not have4191jurisdiction here, and that the carrier at Brightline floor is4192not a carrier subject to the RLA.4193    So those activities should have been conducted under the4194auspices of the National Labor Relations Board. I want it be4195clear that this is a jurisdictional dispute. This is not a4196dispute on whether we want our employees to have the ability to4197organize.4198    Senator Markey. Well, you know, as you know, most recently,4199the National Mediation Board, which mediates disputes between4200railroads and their workers, ruled in favor of the workers.4201    And from my perspective, that should be the end of the4202matter. I understand that you are trying to make this into a4203procedural issue, but there has been a substantive decision4204against you, you know, on behalf of the workers. And what you4205are doing is actually prolonging this progress--this process.4206And I just want to make the point that I just disagree with4207you.4208    And in terms of having devices in automobiles to detect4209alcohol, it is really intended for safety purposes. 40,0004210people died in auto accidents last year, and many of them are4211younger people.4212    And when that--who just are kind of getting introduced to4213driving and to alcohol. And the fact that these cars would then4214be protected against the accidents that sometimes occur I think4215is a good thing and I don't think that we should be repealing4216that kind of a protection.4217    And I just wanted to put that up because I was a part of4218the team that put that regulation on the books. So, let me just4219turn back to you, Mr. Chairman, with thanks.4220    Senator Young. Well, thank you, Senator Markey, for those4221questions. And I want to thank all of our witnesses for your4222important testimony today. I think the members have learned a4223lot. And my hope is that we might stay in touch as we work on4224this important reauthorization legislation.4225    So, we will look forward to further counsel from you and4226others in your organization. Senators will have until close of4227business on Wednesday, June 25, to submit questions for the4228record. Witnesses will have until the end of the day on4229Wednesday, July 9 to respond to those questions.4230    This concludes today's hearing. This committee stands4231adjourned.4232    [Whereupon, at 11:44 a.m., the hearing was adjourned.]42334234                            A P P E N D I X42354236       Prepared Statement of Anne C. Reinke, President and CEO,4237             Intermodal Association of North America (IANA)4238    On behalf of the Intermodal Association of North America (IANA),4239thank you Subcommittee Chair Young, Ranking Member Peters, and4240Subcommittee Members for convening this hearing to discuss4241opportunities to improve programs and regulations impacting the rail4242industry under the next surface transportation reauthorization.4243    As the only transportation trade association that represents the4244combined interests of intermodal freight providers and customers, IANA4245represents more than 1,000 corporate members, including railroads,4246ocean carriers, ports, intermodal truckers and over-the-road highway4247carriers, intermodal marketing and logistic companies, and suppliers to4248the industry. IANA's associate (non-voting) members include shippers4249(defined as the beneficial owners of the freight to be shipped),4250academic institutions, government entities, and non-profit trade4251associations.4252    Unlike single transportation modes, intermodal freight supply4253chains are comprised of distinct service providers that work in concert4254to complete intermodal movements. Each link is a vital component of the4255overall intermodal supply chain and must operate safely, seamlessly,4256and efficiently to uphold systemwide performance and productivity4257levels. Railroad operators are a critical service provider in the4258interconnected intermodal supply chain. The intermodal industry moves4259approximately 18 million containers by rail annually.4260    Recognizing the broad range of issues under the Subcommittee's4261jurisdiction, IANA looks forward to working with you to advance a4262surface transportation authorization law that increases intermodal4263supply chain efficiency, promotes safety and innovation within the4264industry, and fosters economic growth and competitiveness.4265Regulatory Approach4266    Intermodal allows beneficial cargo owners to utilize the best and4267highest use of each mode. Rail, for example, offers an environmentally4268superior long-distance movement, capable of moving one ton of freight4269nearly 500 miles on a single gallon of diesel fuel. Rail also boasts an4270impressive safety record that continues improving year-after-year.4271    While rail customers view fuel efficiency and safety as4272``benefits,'' railroads view them as achievements resulting from4273decades of private investment, innovation, and workforce development.4274These achievements are only possible through a regulatory framework4275that allows railroads to focus financial and personnel resources on key4276infrastructure upgrades and emerging technologies.4277    Any changes to the regulations governing rail, and likewise any4278mode, must be founded in credible research rather than assumption. At a4279minimum, this research must: 1) show that new regulations would yield a4280safety improvement; and 2) contemplate downstream consequences of said4281regulation (for example, the consequences of a regulation aimed at4282reducing rail-related emissions might include forcing a shift away from4283rail to a less fuel-efficient mode).4284    While I recognize this Committee is responsible for Federal rail4285policy, individual states continue to threaten overall network fluidity4286with proposals such as the California Air Resources Board (CARB) In-Use4287Locomotive Regulation. The regulation proposes unrealistic phase-out4288dates for current diesel configurations and jeopardizes interstate4289freight rail operations. While CARB withdrew its authorization request4290to the U.S. Environmental Protection Agency (EPA) earlier this year, I4291urge continued vigilance against state laws and regulations that4292threaten national freight efficiency and interstate commerce.4293    Rail safety continues to improve due to a high level of private4294investment, a well-trained workforce, and a commitment to ongoing4295research and development. Federal Railroad Administration (FRA) data4296shows that the railroad accident rate declined by 33 percent between42972005 and 2024. New burdens on the railroad industry that are not4298directly linked to safety improvements will adversely impact the4299industry's ability to make critical investments in safety technologies4300as well as other innovations necessary to remain competitive and to4301address customer needs.4302Network Resilience4303    The supply chain has been challenged by a number of events in4304recent memory. COVID-19, the collapse of the Baltimore's Francis Scott4305Key Bridge, and severe weather events have all caused supply chain4306disruption as shippers, equipment suppliers, and logistics managers4307work to reroute freight with little-to-no advance warning. Despite4308these challenges, intermodal freight has proven its resiliency by4309leveraging the strengths of rail, road, and water transport. The4310industry was able to remain nimble and keep critical goods moving in4311each instance, minimizing the cost and level of disruption.4312    While it's unclear what the next catastrophic event may be, in all4313likelihood disruption is on the horizon. Railroads will continue4314investing and innovating to prepare their infrastructure for these4315events. We encourage Federal coordination to convene various supply4316chain stakeholders and coordinate a high-level response to supply chain4317disruptions. The U.S. Department of Transportation's Office of4318Multimodal Freight Infrastructure and Policy (Freight Office) has4319played a critical role in such coordination, particularly when time is4320of the essence to quickly identify alternative routes and prevent4321further disruptions. IANA has been a longstanding supporter of this4322office and encourages Congress to provide the necessary resources for4323the Freight Office to continue its important work.4324Federal Funding4325    Intermodal freight projects are complex and there are limited4326Federal programs available to support these critical supply chain4327projects. IANA urges Congress to increase the availability of funding4328for intermodal freight infrastructure in the forthcoming4329reauthorization, and of relevance to this hearing, those that provide4330for investment in freight rail infrastructure. The Consolidated Rail4331Infrastructure and Safety Improvements Program (CRISI) and Railroad4332Crossing Elimination Grant Program (RCE) are essential programs for4333freight rail and its surrounding communities. While not rail specific,4334the Nationally Significant Multimodal Freight and Highway Projects4335program (INFRA), National Infrastructure Project Assistance grants4336program (Mega), and the Freight Formula Program include eligibility for4337projects that strengthen rail infrastructure and minimize the impact of4338nationally and regionally significant freight movement on local4339communities. These programs all encourage public private partnerships4340and demonstrate a Federal interest in boosting the competitiveness of4341U.S. freight in foreign markets.4342    IANA recommends improvements to competitive grant programs that4343reduce application burdens, expedite grant agreements, and streamline4344funding delivery. Congress could implement requirements such as4345limiting the page length of notices of funding opportunity; requiring4346USDOT to maintain a public dashboard of funding opportunity timelines;4347and, ensuring USDOT publishes a template grant agreement at the time of4348award notice.4349    Decreasing project delivery timelines is critical to maximizing4350investments. We urge Congress to legislate permanent, bipartisan4351solutions that provide consistency and clarity to the complex process4352of permitting infrastructure projects. Once legislated, strong4353Congressional oversight is needed to ensure that Federal agencies4354implement these policies and that they are consistent with4355Congressional intent.4356Cargo Theft4357    In recent years, instances of organized cargo theft and fraud have4358increased at an alarming rate. All modes, including rail, are4359vulnerable and targeted. I applaud the Committee's commitment to4360addressing the problem by holding a hearing on February 27, 2025 (Grand4361Theft Cargo: Examining the Costly Threat to Consumers and the U.S.4362Supply Chain) and also by approving the Household Goods Shipping4363Consumer Protection Act (S. 337), a bipartisan proposal led by Senators4364Deb Fischer (R-NE) and Tammy Duckworth (D-IL).4365    These crimes impose significant financial burdens that ripple4366through our supply chains and economy. Impacts include cargo loss,4367equipment damage, increased insurance costs, and delivery delays.4368American households pay the price.4369    While industry can deter criminals, it is law enforcement's4370responsibility to identify and charge them with crimes. It is likely4371that theft, fraud, and cyber-security attacks aimed at freight4372transportation will require a host of solutions, and we applaud4373Congress for its dedication to identifying bipartisan approaches, such4374as the Household Goods Shipping Consumer Protection Act as well as the4375Combating Organized Retail Crime Act (S. 2853). Both bills would make4376meaningful changes at the Federal level to identify, prosecute, and4377deter cargo theft. A coordinated, national response is needed to4378address this growing threat by improving enforcement capabilities and4379fostering increased collaboration across relevant federal, state, and4380local agencies.4381    America's economic competitiveness depends on a modern, efficient,4382and resilient intermodal rail system. IANA stands ready to work with4383Congress to support targeted investments, smart policy reforms, and4384collaborative initiatives that modernize rail infrastructure and4385position the intermodal freight network for long-term success.4386    Thank you for your leadership on this important issue, and for the4387opportunity to share our perspective. We look forward to working with4388you and would welcome the opportunity to further engage with your4389offices. If you or your staff have any questions, please do not4390hesitate to contact me at areinke@intermodal.org or 301-982-3400.4391                                 ______43924393                [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]43944395                                 ______43964397      Response to Written Question Submitted by Hon. Ted Cruz to4398                             Ian Jefferies4399    Question. We've heard cited on several occasions that there have4400been more than 4,000 trains that have derailed since 2020. This number4401sounds very high. What is the context for many of these derailments?4402For example, how many of these are very low speed derailments that4403occur within railyards?4404    Answer. A single accident is one too many, and railroads are4405committed to reducing the total number. When discussing derailments, it4406is imperative that policymakers understand the types that occur.4407Approximately 74 percent of derailments are low-speed yard derailments4408occurring at average speeds below 6 mph. The overall derailment rate4409per million train miles has dropped 39 percent over the past 20 years4410(since 2005) and 17 percent year-over from 2023 to 2024. The mainline4411derailment rate has dropped 49 percent since 2005 and 6 percent year4412over from 2023 to 2024, while the yard derailment rate has dropped 344413percent and 21 percent over those two same respective time periods.4414Railroads continue to invest in technology, infrastructure, and our4415workforce to ensure that day-to-day operations are as safe as possible.4416                                 ______44174418     Response to Written Question Submitted by Hon. Todd Young to4419                             Ian Jefferies4420Track Safety4421    Question. With rail traffic increasing and new high-speed services4422coming online, there's growing attention on the safety of areas along4423the right-of-way, especially outside of traditional highway-rail4424crossings. Many railroads are exploring innovative technologies and4425community partnerships to reduce risks in these areas.4426    What can Congress do to help support railroads and their partners4427as they work to implement effective safety measures away from4428crossings?4429    Answer. Reducing the frequency of grade crossing incidents remains4430a focus for the freight rail industry. Since 2005, the grade crossing4431collision rate has gone down only 4 percent despite significant4432investments from both the railroads and our private sector partners4433over that same period. Nevertheless, railroads are committed to4434reducing the frequency of crossing incidents.4435    Congress has recognized the need for additional investments towards4436this goal and has created several grant programs for public entities to4437partner with railroads to reduce the frequency of these incidents.4438Programs such as the Railway-Highway Crossings (Section 130) Program,4439the Railroad Crossing Elimination Grant Program, and the Multimodal4440Discretionary Grant Programs are all Federal programs that can be used4441to either upgrade or eliminate grade crossings that pose unacceptable4442risks to the traveling public. AAR supports the reauthorization and4443continued support of these programs.4444                                 ______44454446   Response to Written Questions Submitted by Hon. Amy Klobuchar to4447                             Ian Jefferies4448    Permitting Reform. I frequently hear from constituents about slow4449permitting processes, which cause delays and add costs. You mentioned4450in your testimony that ``more can be done to fast-track routine rail4451construction projects without ignoring environmental or historical4452preservation concerns.''44534454    Question 1. Please expand on how permitting can be streamlined4455while protecting these other considerations.4456    Answer. AAR supports numerous economy-wide permitting reform items4457such as:44584459   creating enforceable deadlines under NEPA that would allow4460        for more a more transparent and predictable permitting process,44614462   modifying section 401 of the Clean Water Act to set4463        timelines for water quality certifications by states and4464        prohibiting states from requesting that project sponsors4465        withdraw applications to restart timelines, and44664467   codifying a statutory definition of ``Waters of the U.S.''4468        that mirrors the jurisdictional boundaries identified by the4469        U.S. Supreme Court in Sackett II.44704471    In addition to these items, there are several opportunities for4472Congress to advance rail-specific reforms.44734474   First, Congress could codify the recent Supreme Court4475        decision in the Seven Counties Infrastructure Coalition v.4476        Eagle County, Colorado case, in which the Court ruled 8-0 that4477        Federal agencies are not required to analyze the environmental4478        impacts of projects they have no authority over. This is4479        especially important for the freight rail industry since, as4480        common carriers, our members have no ability to choose which4481        commodities they move along their lines; as such, they should4482        not be held accountable for the upstream and downstream impacts4483        that those commodities may have.44844485   Second, Congress should ensure that Advisory Council on4486        Historic Preservation follows congressional intent by adhering4487        to section 11504 of the FAST Act, which directed ACHP to issue4488        a final exemption from Section 106 requirements (historic4489        preservation reviews) for railroad rights-of-way that is4490        consistent with the exemption issued for interstate highways.44914492    Supply Chain & Rural Businesses. Rail plays a critical role in4493connecting small towns and rural areas to ports and larger markets. In4494your testimony, you discussed how ``freight railroads remain4495indispensable today'' across nearly every sector of our economy,4496especially agriculture.44974498    Question 1. How can Federal investment in rail strengthen our4499Nation's supply chain infrastructure and support rural economies?4500    Answer. The freight rail industry connects rural business to the4501broader economy, both domestically and overseas. Whether the railroads4502are picking up new products from a manufacturer or delivering finished4503goods to a distribution center to then be transported to local stores,4504our industry is critical to connecting all facets of the economy4505together. That is why our industry supports funding for grant programs4506that enable public sector entities to partner with freight railroads to4507advance projects of mutual interest that improve the overall fluidity4508of the supply chain, reduce freight congestion, improve safety,4509facilitate passenger rail service, and improve the quality of life for4510communities that neighbors rail lines and yards. Investments in the4511Multimodal Project Discretionary Grants Program under the Department of4512Transportation allow for the creation of large infrastructure projects4513that may otherwise lack the resources. In addition to having benefits4514that are felt nationally, these projects are often located in rural4515areas and yield significant benefits to those communities.4516                                 ______45174518    Response to Written Questions Submitted by Hon. Gary Peters to4519                             Ian Jefferies4520    Question 1. As I noted in my opening remarks, communities in4521Michigan have had firsthand experience with hazmat train derailments,4522where first responders not only didn't have access to a record of what4523was on the train, but train crew had to wait hours to relay which cars4524were carrying hazardous material. I have been encouraged that many rail4525companies have taken it upon themselves to adopt better systems for4526alerting first responders to potentially hazardous conditions. And that4527the Railway Safety Act that passed out of this committee with4528bipartisan support last Congress required such notification as a4529baseline safety practice. Would you support such a baseline4530requirement?4531    Answer. AAR supports first responders having access to the4532information they need to respond to incidents in a timely fashion. We4533must also take steps to ensure that sensitive information that could be4534misused by nefarious actors, such as information on the commodities4535that are moving in any given train, are given appropriate protections.4536In 2014, America's Class I railroads, Amtrak, the International4537Association of Fire Chiefs, Railinc and the AAR created the AskRail4538app. As a backup to the train's consist and conductor, the app provides4539first responders immediate access to accurate, timely data about what4540type of hazardous materials a railcar is carrying so first responders4541can make an informed decision about how to respond to a rail emergency.4542Today, more than 2.3 million first responders have access to AskRail.4543Freight railroads are working directly with emergency communication4544centers to enhance coverage and information access for first4545responders. AskRail enables first responders to receive timely4546information when a rail-related incident occurs involving hazmat.4547Additionally, each state's fusion center receives a periodic report4548from the railroads detailing the types of commodities that move through4549the state so that they can be trained to respond to incidents involving4550those commodities.45514552    Question 2. As I mentioned in my opening remarks, communities4553across Michigan have begun to address their blocked and dangerous4554railroad crossings by making use of the Railroad Crossing Elimination4555Grant Program that Congress created as part of the Bipartisan4556Infrastructure Law. And while improvements to railroad crossings are an4557eligible use of CRISI funding, we've seen that this new dedicated4558funding for crossings has finally begun to move the needle on this4559problem in our communities. However, there are thousands of railroad4560crossings still in need of upgrades that remain unfunded, and4561communities in Michigan like Manistee and Kalamazoo will need4562additional resources to carry out the plans that they're currently4563working on. With that, I have a yes or no question for the whole panel.4564Do you believe Congress must maintain the Railroad Crossing Elimination4565Grant Program as a dedicated funding stream to address railroad4566crossing issues in the next Surface Transportation Reauthorization4567Bill?4568    Answer. The freight rail industry strongly supports the Railroad4569Crossing Elimination Grant Program, and it is our hope that Congress4570continues to support this program both in reauthorizing the program4571beyond its forthcoming expiration and continuing to provide robust4572funding during the annual appropriations process.45734574    Question 3. As our witnesses know, as manufacturing booms in4575America so does the need for increased rail service. I have heard from4576stakeholders in rural Michigan and the Upper Peninsula in particular4577about the desire for increased rail connections to major rail lines,4578which would remove a lot of trucks from small and less safe rural4579roads. Given the backlog of rail maintenance being discussed in this4580hearing, I know the initiation and construction of new railroad and4581service corridors is challenging. Do you anticipate expanding rail4582lines in the coming years? And how do you think Congress can best4583support or incentivize new freight service, especially in rural areas?4584    Answer. Plans to expand freight service are driven by market4585decisions, and the Class I's work to develop new business opportunities4586all the time. While I cannot speculate about the possibility of4587expansion into any specific market, the railroads will continue to seek4588out new business opportunities. To make those future business ventures4589commercially viable, Congress should ensure that a balanced regulatory4590framework exists that promotes growth. Additionally, reforming the4591environmental permitting process would alleviate some of the years-long4592processes that unnecessarily delay the creation of new infrastructure4593projects. Finally, Congress should ensure modal parity between rail and4594trucking by restoring the Highway Trust Fund to solvency via a user-fee4595model that accounts for weight differentials between passenger vehicles4596and semi-trucks.45974598    Question 4. Mr. Jefferies, Michigan manufacturers and automakers4599rely on freight rail to move products across this country--and over4600borders into Canada and Mexico. I have heard from Michigan businesses4601about the chaos and uncertainty created by these policies. How have4602constantly changing tariffs impacted the freight rail business? Have4603your members and their clients been provided with certainty regarding4604implementation of some of these more complex tariffs?4605    Answer. Railroads depend upon the timely movement of goods across4606land borders and through ports of entry. Nearly 40 percent of rail4607traffic is associated with imports and exports. Over the past few4608months, the railroads have allocated both personnel and locomotives to4609best respond to changing market conditions. Certainty in both4610regulations and freight traffic patterns based on international trade4611agreements is therefore critical for the railroads so they are able to4612properly deploy resources when and where they are needed most. The4613freight rail industry is taking lessons learned during the COVID-194614supply chain disruptions to better prepare for future uncertainties,4615including those potentially caused by market reactions to fluctuating4616tariff rates.46174618    Question 5. One of the top issues plaguing passenger rail is on-4619time performance. In Michigan, Amtrak lines originating in Chicago4620especially struggle to break 70 percent on time performance. Amtrak has4621identified one of the major causes of these delays as freight companies4622are not living up to their statutory duty to ensure on-time passenger4623service.46244625    a. Mr. Jefferies, what steps are freight railroads taking to4626improve on time performance?46274628    b. How can stakeholders better work together to improve outcomes?46294630    c. Do you agree that the Surface Transportation Board has the4631authority to step in if rail companies aren't holding up their end of4632the bargain?4633    Answer. America is connected by the most efficient, affordable, and4634environmentally responsible freight rail system in the world, a system4635overwhelmingly built and maintained by the freight railroads4636themselves. This system provides the foundation for most passenger4637rail. America can and should have both safe, effective passenger4638railroads and a safe, productive, freight rail system. To achieve that4639outcome, early and consistent coordination and cooperation between host4640railroads and passenger railroads can lead to better outcomes for4641everyone involved on all topics, including both new service as well as4642the performance of existing service. It is also worth noting that the4643reasons why a particular train on a particular route on a particular4644day is delayed can be quite varied--from schedules being out-of-date to4645weather events--and is a fact-specific analysis. This is why Congress4646gave the Surface Transportation Board the ability to resolve disputes4647regarding preference and on-time performance on a case-by-case basis.4648Regardless, the railroads will continue to work with the passenger4649railroad partners to improve service wherever possible.4650                                 ______46514652   Response to Written Question Submitted by Hon. Tammy Duckworth to4653                             Ian Jefferies4654Chicago Region Environmental and Transportation Efficiency Program4655    Question 1. Chicago is a national hub for freight rail. One out of4656every four freight trains in the U.S. passes through Chicago--which is4657about 500 freight trains every day--and the city has more tracks4658radiating in more directions than any other city in North America.4659However, bottlenecks in Chicago cause delays in the shipment of goods4660across the country. That is why freight rail companies, Amtrak, Metra,4661the State of Illinois and the City of Chicago are partnering on the4662Chicago Region Environmental and Transportation Efficiency Program, or4663``CREATE,'' which is unclogging the rail network by building crucial4664underpasses and overpasses, and upgrading tracks, switches and signals.46654666    A. Mr. Jefferies, how important is continued Federal investment in4667CREATE to our national freight rail network and our Nation's economy?4668    Answer. CREATE represents one of the most successful public private4669partnerships in the history of railroading. Through significant4670investments by federal, state and local public partners, freight4671railroads, Amtrak, and METRA, CREATE has improved the efficiency and4672safety of freight movements through Chicago over the last 20 years.4673    To date, CREATE has seen $1.6 billion in investments over the last467420 years--$1 billion spent and $1.6 billion pending. Of that4675investment, the Federal government has provided $1.05 billion in4676grants, the State of Illinois has provided $704 million, and Cook4677County and the City of Chicago have provided $246 million. Railroads4678have provided $575 million. CREATE partners have put that money to good4679use: 35 projects are completed, 21 in process, and 14 projects4680remaining.4681    Given the size and scope of these collaborative projects, Federal4682grant funding has been critical to CREATE's success. Most recently, in46832024, CREATE was awarded three major Federal grants to start work on4684the next phase of the 75th St. Corridor Improvement Project, which will4685begin the process of untangling the largest freight chokepoint in the4686Chicago region. That funding included $291.2 million through the4687Multimodal Discretionary Grant Program ($209.9 million in Mega grants4688and $81.3 million in INFRA grants) and $43 million from the Grade4689Crossing Elimination Program.4690    Continued Federal investments in CREATE are critical to continue4691addressing the safety and efficiency issues the partnership was4692designed to fix. These large, complex infrastructure problems require4693large investments of Federal money to address as quickly as possible.4694Railroads remain committed to working with our partners in CREATE to4695see these projects through and support our public partners' efforts to4696secure robust Federal funding going forward. Railroads are also4697committed to funding additional projects in the Chicago area outside of4698CREATE, totaling an average of $500 million per year to improve safety4699and keep the supply chain moving.4700                                 ______47014702     Response to Written Question Submitted by Hon. Todd Young to4703                            Peter Gilbertson4704Track Safety4705    Question. With rail traffic increasing and new high-speed services4706coming online, there's growing attention on the safety of areas along4707the right-of-way, especially outside of traditional highway-rail4708crossings. Many railroads are exploring innovative technologies and4709community partnerships to reduce risks in these areas.4710    What can Congress do to help support railroads and their partners4711as they work to implement effective safety measures away from4712crossings?4713    Answer. Safety must extend beyond the crossing gates. As rail4714traffic increases and new services--including high-speed rail--come4715online, it's critical to address risks along the entire right-of-way,4716especially in areas where the public may not expect to encounter4717trains.4718    Many railroads are investing in new technologies like drone4719surveillance, thermal imaging, geofencing, and AI-enabled trespasser4720detection systems, as well as working with local governments and4721community groups to promote awareness and improve physical barriers.4722But to scale these solutions, railroads and their partners need4723support.4724    Congress can help by:47254726  1.  Creating or expanding grant programs that fund non-crossing4727        safety initiatives, including advanced detection technology,4728        fencing, and public education campaigns, such as Operation4729        Lifesaver.47304731  2.  Encouraging FRA to work with railroads and communities to4732        identify high-risk corridors and develop coordinated risk4733        mitigation strategies.47344735  3.  Supporting research, pilots, and data-sharing for innovative4736        right-of-way safety technologies.47374738  4.  Providing flexibility in existing safety and infrastructure4739        programs to allow funds to be used for trespass prevention and4740        right-of-way improvements, not just traditional crossing4741        upgrades.47424743    Ultimately, keeping communities safe in the rail environment4744requires a modern, proactive, and well-funded approach--and Congress4745plays a vital role in enabling that.4746                                 ______47474748   Response to Written Questions Submitted by Hon. Amy Klobuchar to4749                            Peter Gilbertson4750    Permitting & Grant Process Reform. You mentioned in your testimony4751that CRISI projects can be delayed by more than 12 months and that4752there are potential opportunities to improve the grant process.47534754    Question 1. What can be done to make sure that these funds get out4755the door faster, so projects aren't stalling?4756    Answer. CRISI Grant Award Process Recommendations--4757    The CRISI program has proven to be powerful, effective, and broadly4758supported on a bipartisan basis. However, there are clear opportunities4759to improve the grant process. Delays between award announcements and4760actual construction, as well as obstacles to making necessary project4761adjustments as conditions evolve, significantly reduce the4762effectiveness of CRISI funding--not just for railroads like ours, but4763for the shippers and communities that rely on us.4764    Short lines are ready to get to work. By the time they apply for4765CRISI grants, they have already invested limited financial resources--4766along with substantial personnel resources--just to be able to compete4767effectively for funding. Further, the CRISI application itself requires4768a draft Grant Agreement attachment that details the budget, the task4769descriptions and the time for the project.4770    Shippers, who rely on short lines for critical access to domestic4771and international markets, are eager to see safer, more efficient rail4772service become a reality. Delays in grant funding delay the hoped-for4773improvements and business opportunities.4774    In addition, the communities we serve--where local expertise is4775often employed to undertake these projects--are waiting to realize the4776economic benefits that come with upgraded infrastructure: new business4777investment, expanded manufacturing, and job creation.4778    To maximize the impact of the CRISI program, we must address these4779systemic delays. Streamlining implementation and allowing for greater4780flexibility in project management will ensure that Federal dollars4781translate more quickly and effectively into real-world benefits. Our4782recommendations include:47834784   Improved Speed--CRISI projects should move from announcement4785        to obligation to completion faster than they currently do.4786        Currently, CRISI some projects are delayed by 12-18 months.4787        Most short line projects are quite simple in the context of4788        infrastructure investments. Compressing the timeline would4789        result in better outcomes for the public, for short lines, for4790        communities, and for shippers with no additional risk, and4791        would help avoid the significant cost escalation associated4792        with delay.47934794   Encourage the use of pre-award authority (PAA)--More4795        extensive use of PAA would allow CRISI grant awards for small4796        railroad infrastructure projects to move more quickly and4797        efficiently. PAA authorizes grant recipients to begin their4798        projects immediately at their own risk rather than being stuck4799        in limbo during the often-lengthy Federal approval process,4800        including environmental and historic reviews. Nearly all short4801        line projects that receive CRISI awards are found to create no4802        significant impacts on the environment that would require4803        mitigation as a condition of award. The agency should consider4804        more routinely authorizing PAA for non-ground disturbing4805        elements of short line project scope such as for engineering4806        analyses, locomotive investments, and acquisition of4807        construction materials like crossties and rail. Prompt4808        acquisition of materials can be a particularly useful step to4809        mitigate project cost inflation risk. Delays in completing4810        engineering and design work correspondingly delay entry into4811        the construction phase of a project.48124813    Question 2. How can the Federal government improve the permitting4814process?4815    Answer. The short line industry believes that there are several4816ways to improve the permitting process. Recommendations include the4817following:48184819  1.  Improve Elements of the National Environmental Policy Act (NEPA)4820        Process--Railroads are an environmentally friendly way to move4821        goods. The short line industry encourages efforts to ensure4822        NEPA requirements reflect this sustainable way to move freight4823        and do not undermine it. Specifically, we believe there could4824        be room within USDOT's NEPA implementing regulations to expand4825        definitions of selected categorical exclusions (CEs) without4826        risking significant environmental impacts. Systematically4827        bundling and front-loading projects that are likely to be CEs4828        for expedited and early review and approval is an approach that4829        could speed up the overall processing of awards. ASLRRA looks4830        forward to the updating of regulatory and policy frameworks at4831        DOT that should reduce the delay risk of NEPA and other4832        statutorily required reviews, particularly those made in4833        accordance with recent Supreme Court decisions.48344835  2.  Grant Adjustment Request Form Process--The Grant Adjustment4836        Request Form (GARF) process is a procedure used by grant4837        recipients to request changes to the terms of a grant. These4838        changes might include things like:48394840      1.  Budget modifications  (e.g., moving funds between categories)48414842      2.  Time extensions for completing the project.48434844      3.  Scope changes to alter what the grant is funding.48454846      4.  Key personnel changes or other administrative updates48474848      We recommend continuing effort at streamlining the steps,4849        improving communication, and aligning requirements with real-4850        world project conditions. We are encouraged by DOT's recent4851        efforts to develop grant agreements with the flexibility to4852        enable minor adjustments within projects such that GARFs are4853        less frequently needed.48544855  3.  Coordinate Section 106 Reviews--FRA can reduce delays by4856        coordinating with DOT's Office of the Secretary of4857        Transportation (OST) and the White House to expedite the4858        Advisory Council on Historic Preservation's acceptance of the4859        final Section 106 exemption of railroad rights-of-way (ROW)4860        from review under Section 106 of the National Historic4861        Preservation Act. Unnecessary Section 106 reviews can introduce4862        serious delays into the grant obligation process.48634864    Supply Chain & Rural Businesses. Rail plays a critical role in4865connecting small towns and rural areas to ports and larger markets. You4866mentioned in your testimony that short lines ``provide first-and last-4867mile service to over 10,000 shippers.''48684869    Question 1. How do investments in our rail infrastructure, like the4870CRISI grant, help retain and grow businesses and jobs in rural areas,4871especially the manufacturing and agriculture industries?4872    Answer. Many short lines were born out of necessity after the4873Staggers Rail Act of 1980, which transferred neglected large Class I4874branch lines that were otherwise headed for abandonment to local4875operators who believed in their potential. Since then, short lines have4876proven to be resilient, entrepreneurial businesses that reinvest4877heavily--up to one-third of revenue annually--into maintenance and4878upgrades. Rehabilitating and operating these lines are enormously4879capital-intensive. The CRISI grant program, created in 2015, is the4880only Federal program that allows direct access to capital for short4881line infrastructure improvements.4882    The CRISI grant program has yielded six key benefits for the short4883line industry and shippers:48844885  1.  Addressing Critical Infrastructure Needs--CRISI enables critical4886        projects, such as bridge replacements, or track upgrades that4887        remove bottlenecks and allow carriage of industry-standard4888        286,000-pound railcars, improving interoperability and4889        competitiveness.48904891  2.  Improving Safety--Rail safety directly benefits from sound4892        infrastructure. CRISI funds replace worn-out crossties and4893        steel rails, reducing the risk of derailments and making rail4894        service safer for employees and communities alike.48954896  3.  Creating and Sustaining Jobs--Short line rehabilitation projects4897        are labor-intensive and rely on local contractors. These4898        projects support good-paying jobs in rural communities and4899        generate long-term employment through freight rail service4900        expansion and improvement.49014902  4.  Enhancing Environmental Outcomes--Rail is the most fuel-efficient4903        mode of freight transport. CRISI-funded upgrades facilitate4904        modal shift from truck to rail, which reduces highway4905        congestion and air pollution.49064907  5.  Promoting Economic Development--CRISI investments enable service4908        to new and growing businesses and attract additional shippers4909        and manufacturers to the community.49104911  6.  Improving Service for Customers--Even small improvements--such as4912        a short stretch of new track or the elimination of a chronic4913        derailment risk--can make an enormous difference in the4914        transportation costs and competitiveness of shippers. Reshoring4915        of manufacturing to the U.S. requires a strong rail freight4916        network.49174918    Of the 240 CRISI awards made to date, over $2.7 billion has gone to4919projects benefiting short lines. In the most recent combined FY23-244920round, short lines received 81 out of 122 awards--over $1.2 billion in4921funding. These awards were matched by local and private investments4922ranging from 20 percent to as much as 80 percent, demonstrating that4923CRISI leverages public dollars effectively and attracts private capital4924that otherwise would not be invested.4925The Importance of Predictable and Robust Funding4926    The advance appropriations provided for CRISI through the previous4927surface transportation law--$1 billion annually through FY 2026--have4928been transformational. Predictable funding allows small businesses to4929plan ahead, secure match funding, and complete upfront engineering work4930required for competitive applications. Without advance appropriations,4931many short lines would be unable to pursue these grants due to the4932uncertainty and high upfront costs involved, and CRISI funds would be4933less effectively spent.4934    The merit-based approach for awarding CRISI grant funds has proven4935to be accessible to short lines. Over the life of the program, and4936across Administrations, this approach has resulted in a generally4937equitable national distribution of funding while providing the U.S.4938Department of Transportation with important flexibility to address a4939very diverse array of types and scale of freight rail investment needs.4940    It is essential that the next surface transportation4941reauthorization not only extends CRISI but also preserves the advance4942appropriations structure. Without it, Federal investment becomes less4943effective, fewer projects move forward, and the communities that rely4944on short lines are left behind.4945                                 ______49464947    Response to Written Questions Submitted by Hon. Gary Peters to4948                            Peter Gilbertson4949    Question 1. As I noted in my opening remarks, communities in4950Michigan have had firsthand experience with hazmat train derailments,4951where first responders not only didn't have access to a record of what4952was on the train, but train crew had to wait hours to relay which cars4953were carrying hazardous material. I have been encouraged that many rail4954companies have taken it upon themselves to adopt better systems for4955alerting first responders to potentially hazardous conditions. And that4956the Railway Safety Act that passed out of this committee with4957bipartisan support last Congress required such notification as a4958baseline safety practice. Would you support such a baseline4959requirement?4960    Answer. Yes, I support the principle of ensuring that first4961responders have timely, accurate access to information about hazardous4962materials. As I mentioned in my oral testimony on June 18th, Anacostia4963is working with the state of Indiana, using a CRISI grant, to develop a4964Rail Response application that will allow railroads to share geospatial4965incident data with first responders in real time through a web or4966mobile interface. This kind of innovation can significantly improve4967response times and public safety.4968    That said, it's important to recognize that many short line4969railroads--who often operate on tight margins--may need support to4970implement these kinds of systems. That's why we intend to make the Rail4971Response app available to other short lines at nominal cost once it's4972complete. A well-designed baseline requirement that allows for flexible4973compliance paths and recognizes the resource constraints of smaller4974operators could help ensure safety without creating undue burdens.49754976    Question 2. We have heard in testimonies about the need to speed up4977and streamline the Federal Railroad Administration's grant disbursement4978process. I strongly agree. That is why I have been concerned by the F-4979R-A Administrator Nominee's testimony that F-R-A should focus less on4980grant administration. F-R-A's first and most important mission is4981safety. As all of our witnesses know, however, effective investment in4982rail infrastructure is absolutely central to safety. Mr. Gilbertson, do4983you agree that we must ensure that the Federal Railroad Administration4984has sufficient staff to carry out the high volume of CRISI and other4985infrastructure grants, and that massive personnel cuts may slow the4986process further? What other steps do you believe F-R-A can take to4987speed the process from grant announcement to obligation?4988    Answer 2a. The success of the CRISI program and other federally4989funded infrastructure initiatives depends not just on the availability4990of funding, but also on the FRA's capacity to administer those programs4991effectively and efficiently.4992    The volume and complexity of grant applications--especially with4993the historic level of investment made possible by the Bipartisan4994Infrastructure Law--requires a well-staffed, well-resourced FRA.4995Without sufficient personnel, we risk significant delays in analyzing4996applications and in processing grant agreements with those selected.4997That's especially problematic for rural and short line projects, where4998delays increase costs and can jeopardize local matching funds.4999    Answer 2b. The CRISI program has proven to be powerful, effective,5000and broadly supported on a bipartisan basis. However, there are clear5001opportunities to improve the grant process. Delays between award5002announcements and actual construction, as well as obstacles to making5003necessary project adjustments as conditions evolve, significantly5004reduce the effectiveness of CRISI funding--not just for railroads like5005ours, but for the shippers and communities that rely on us.5006    Short lines are ready to get to work. By the time they apply for5007CRISI grants, they have already invested limited financial resources--5008along with substantial personnel resources--just to be able to compete5009effectively for funding.5010    Shippers, who rely on short lines for critical access to domestic5011and international markets, are eager to see a safer, more efficient5012rail service become a reality. Delays in grant funding delay the hoped-5013for improvements and business opportunities.5014    In addition, the communities we serve--where local expertise is5015often employed to conduct these projects--are waiting to realize the5016economic benefits that come with upgraded infrastructure: new business5017investment, expanded manufacturing, and job creation.5018    To maximize the impact of the CRISI program, we must address these5019systemic delays. Streamlining implementation and allowing for greater5020flexibility in project management will ensure that Federal dollars5021translate more quickly and effectively into real-world benefits. Our5022recommendations include:50235024   Improved Speed--CRISI projects should move from announcement5025        to obligation to completion faster than they currently do.5026        Currently, it takes FRA 12 to 18 months to complete a grant5027        agreement. Most short line projects are quite simple in the5028        context of infrastructure investments. Compressing the timeline5029        would result in better outcomes for the public, for short5030        lines, for communities, and for shippers with no additional5031        risk, and would help avoid the significant cost escalation5032        associated with delay.50335034   Encourage the use of pre-award authority (PAA)--More5035        extensive use of PAA would allow CRISI grant awards for small5036        railroad infrastructure projects to move more quickly and5037        efficiently. PAA authorizes grant recipients to begin their5038        projects immediately at their own risk rather than being stuck5039        in limbo during the lengthy Federal approval process, including5040        environmental and historic reviews. Nearly all short line5041        projects that receive CRISI awards are found to create no5042        significant impacts on the environment that would require5043        mitigation as a condition of award. The agency should consider5044        more routinely authorizing PAA for non-ground disturbing5045        elements of short line project scope such as for engineering5046        analyses, locomotive investments, and acquisition of5047        construction materials like crossties and rail. Prompt5048        acquisition of materials can be a particularly useful step to5049        mitigate project cost inflation risk. Delays in completing5050        engineering and design work correspondingly delay entry into5051        the construction phase of a project.50525053   Improve Elements of the National Environmental Policy Act5054        (NEPA) Process--Railroads are an environmentally friendly way5055        to move goods. The short line industry encourages efforts to5056        ensure NEPA requirements reflect this sustainable way to move5057        freight and do not undermine it. Specifically, we believe there5058        could be room within USDOT's NEPA implementing regulations to5059        expand definitions of selected categorical exclusions (CEs)5060        without risking significant environmental impacts.5061        Systematically bundling and front-loading projects that are5062        likely to be CEs for expedited and early review and approval is5063        an approach that could speed up the overall processing of5064        awards. ASLRRA looks forward to the updating of regulatory and5065        policy frameworks at DOT that should reduce the delay risk of5066        NEPA and other statutorily required reviews, particularly those5067        made in accordance with recent Supreme Court decisions.50685069   Grant Adjustment Request Form Process--The Grant Adjustment5070        Request Form (GARF) process is a procedure used by grant5071        recipients to request changes to the terms of a grant. These5072        changes might include things like:50735074     Budget modifications (e.g., moving funds between5075            categories)50765077     Time extensions for completing the project.50785079     Scope changes to alter what the grant is funding.50805081     Key personnel changes or other administrative updates50825083    We recommend continuing effort at streamlining the steps, improving5084        communication, and aligning requirements with real-world5085        project conditions. We are encouraged by DOT's recent efforts5086        to develop grant agreements with the flexibility to enable5087        minor adjustments within projects such that GARFs are less5088        frequently needed.50895090   Coordinate Section 106 Reviews--FRA can reduce delays by5091        coordinating with DOT's Office of the Secretary of5092        Transportation (OST) and the White House to expedite the5093        Advisory Council on Historic Preservation's acceptance of the5094        final Section 106 exemption of railroad rights-of-way (ROW)5095        from review under Section 106 of the National Historic5096        Preservation Act. Unnecessary Section 106 reviews can introduce5097        serious delays into the grant obligation process.50985099    Question 3. As I mentioned in my opening remarks, communities5100across Michigan have begun to address their blocked and dangerous5101railroad crossings by making use of the Railroad Crossing Elimination5102Grant Program that Congress created as part of the Bipartisan5103Infrastructure Law. And while improvements to railroad crossings are an5104eligible use of CRISI funding, we've seen that this new dedicated5105funding for crossings has finally begun to move the needle on this5106problem in our communities. However, there are thousands of railroad5107crossings still in need of upgrades that remain unfunded, and5108communities in Michigan like Manistee and Kalamazoo will need5109additional resources to carry out the plans that they're currently5110working on. With that, I have a yes or no question for the whole panel.5111Do you believe Congress must maintain the Railroad Crossing Elimination5112Grant Program as a dedicated funding stream to address railroad5113crossing issues in the next Surface Transportation Reauthorization5114Bill?5115    Answer. Yes. The short line industry highly recommends that5116Congress continue to fund Operation Lifesaver (OLI), Section 130, and5117the Rail Crossing Elimination (RCE) program to protect the public. By5118far the most significant concerns with rail safety are related to5119interactions with the public at grade crossing accidents and trespasser5120issues. Operation Lifesaver is an industry-and government-supported5121effort which focuses on educating the public both about the importance5122of staying off railroad tracks and the need for passenger and5123commercial vehicle drivers to exercise caution at grade crossings. The5124Federal government has been an important participant in these efforts,5125largely through the FHWA Railway-Highway Crossings Program, known5126widely as the ``Section 130'' program. This program significantly5127improves grade crossing safety by providing funding to improve grade5128crossing protection equipment. More recently, the Rail Crossing5129Elimination program has also been successful in providing options for5130communities to close unnecessary crossings. We recommend that Congress5131continue to fund the OLI, RCE, and Section 130 programs at robust and5132guaranteed levels.51335134    Question 4. I am proud of the progress Congress has made over the5135past few years to boost American manufacturing--through the Chips aund5136Science Act, the Inflation Reduction Act, and more. As our witnesses5137know, as manufacturing booms in America so does the need for increased5138rail service. I have heard from stakeholders in rural Michigan and the5139Upper Peninsula in particular about the desire for increased rail5140connections to major rail lines, which would remove a lot of trucks5141from small and less safe rural roads. Given the backlog of rail5142maintenance being discussed in this hearing, I know the initiation and5143construction of new railroad and service corridors is challenging. Do5144you anticipate expanding rail lines in the coming years? And how do you5145think Congress can best support or incentivize new freight service,5146especially in rural areas?5147    Answer. Yes, we do anticipate expanding rail lines and service in5148the coming years, particularly where it helps connect rural industries5149and communities to national and global markets. But doing so requires5150strategic investment and strong public-private partnerships. Many rural5151areas are underserved by freight rail, even though they produce a5152significant share of the country's agricultural, energy, and5153manufacturing goods.5154    Congress can play a critical role by:51555156  1.  Expanding funding for programs like the CRISI grant program,5157        which helps upgrade infrastructure, restore dormant lines, and5158        extend short line service into areas that no longer have viable5159        rail access.51605161  2.  Providing more flexible match requirements for rural or5162        economically distressed regions, where local funding is often5163        limited but the need is high.51645165  3.  Streamlining permitting and regulatory reviews so that rail5166        projects can move forward efficiently--without unnecessary5167        delays.51685169  4.  Supporting first-and last-mile connectivity projects, which are5170        often the missing link in bringing new freight service to rural5171        communities.51725173  5.  Maintaining the Surface Transportation Board's (STB) expedited5174        regulatory review process for line sale transactions. There5175        remain many areas in rural America where the economics of5176        operating light density rail lines are better suited for local5177        short line railroads than their current Class I owners. The5178        ability to complete these transactions without undue regulatory5179        delay or unnecessary economic restrictions is critical to5180        maintaining rural connections to the national railroad network.51815182    With the right Federal support, the short line rail industry can5183deliver cost-effective, lower-emission transportation solutions that5184help rural America thrive.5185                                 ______51865187     Response to Written Question Submitted by Hon. Todd Young to5188                            Husein A. Cumber5189Track Safety5190    Question. With rail traffic increasing and new high-speed services5191coming online, there's growing attention on the safety of areas along5192the right-of-way, especially outside of traditional highway-rail5193crossings. Many railroads are exploring innovative technologies and5194community partnerships to reduce risks in these areas.5195    What can Congress do to help support railroads and their partners5196as they work to implement effective safety measures away from5197crossings?5198    A range of new technology is emerging to discourage, detect or5199prevent trespassing along the railroad right-of-way. For example,5200lidar, which uses reflected light to detect objects with high5201precision, is a particularly promising technology for use on the5202wayside (along the tracks) and onboard (on the front of the5203locomotive). However, currently railroads are discouraged from adopting5204new technologies because of the potential liability that they would5205assume in doing so. The voluntary adoption of any new technological5206system that expands a railroad's ability to detect and deter5207trespassers increases the risk of trespasser negligence claims against5208the railroad arising from any system downtime or deficiencies, or any5209delay or failure to immediately react to the information provided.5210    A similar legal hypothesis has limited the expansion of traditional5211chain-link fences on railroad corridors. Because fences are often cut,5212knocked down, or otherwise vandalized, the obligation to maintain and5213repair hundreds of miles of fence, and the potential for claims of5214negligence if that obligation is not met, is broadly understood to have5215limited the use of fencing along railroad rights-of-way. The lack of5216common-sense liability protections for railroads that invest in public5217safety infrastructure is curbing the expansion of promising safety5218technology.5219    Congress should support the adoption of new trespassing protection5220technologies and pass liability protections for railroads that5221implement trespass prevention efforts so that the railroads do not5222expose themselves to untenable additional risk in their efforts to5223mitigate behavior that is itself inherently illegal. Such liability5224protections would likely result in the rapid deployment of trespass5225prevention technology, ranging from fences to cutting-edge sensing5226technology, and significantly increase public safety around railroad5227tracks.5228                                 ______52295230    Response to Written Questions Submitted by Hon. Gary Peters to5231                            Husein A. Cumber5232    Question 1. As I mentioned in my opening remarks, communities5233across Michigan have begun to address their blocked and dangerous5234railroad crossings by making use of the Railroad Crossing Elimination5235Grant Program that Congress created as part of the Bipartisan5236Infrastructure Law. And while improvements to railroad crossings are an5237eligible use of CRISI funding, we've seen that this new dedicated5238funding for crossings has finally begun to move the needle on this5239problem in our communities. However, there are thousands of railroad5240crossings still in need of upgrades that remain unfunded, and5241communities in Michigan like Manistee and Kalamazoo will need5242additional resources to carry out the plans that they're currently5243working on. With that, I have a yes or no question for the whole panel.5244Do you believe Congress must maintain the Railroad Crossing Elimination5245Grant Program as a dedicated funding stream to address railroad5246crossing issues in the next Surface Transportation Reauthorization5247Bill?5248    Answer. Yes.52495250    Question 2. My understanding is that Brightline's business model5251aims to provide passenger rail service in certain medium-range5252corridors without subsidies for operation--like what you have between5253Miami and Orlando and what you're building with Brightline West. Do you5254agree that the privatization model would not be financially feasible5255across the national rail network outside of certain high traffic5256corridors?5257    Answer. I do agree with that assessment. The Brightline business5258model is focused on corridors that are ``too long to drive and too5259short to fly'' and that connect city-pairs that are major populations5260centers.52615262    Question 3. Mr. Cumber, you addressed Brightline's safety record at5263the hearing. When these collisions and accidents happen, what resources5264do you make available to workers on the train dealing with this5265traumatic experience?5266    Answer. Brightline's robust employee support program is laid out in5267its FRA-approved Critical Incident Stress Plan, which meets the5268requirements of 49 CFR 272.5269    Beyond the requirements of 49 CFR 272, Brightline's employee5270support begins by providing new hire engineers and conductors with one-5271on-one meetings with the company's mental health counselor. This5272conversation enables the employee to establish a relationship with the5273counselor early on and allows the counselor to assess the employee's5274unique needs and establish appropriate coping strategies. Once a5275baseline is established, the counselor can work with employees to5276develop best practices for handling stress and trauma so that they are5277more prepared and resilient in the unfortunate event that they are5278involved in a critical incident during their railroad career.5279    After a critical incident has occurred, Brightline takes the5280following steps to ensure its transportation employees are provided5281with adequate time to process and recover:52825283  1.  Reminds involved employees of the options available to them5284        following a covered event52855286  2.  Offers employees the ability to be relieved of their duties at5287        the scene of an incident52885289  3.  Provides transportation for those employees to their crew base52905291  4.  Offers counseling and support services52925293  5.  Offers three paid days off52945295  6.  Provides check-in phone calls from supervisors and other company5296        representatives52975298    Question 4. Mr. Cumber, your written testimony discusses Brightline5299West's positive connections with unionized labor. However, in January,5300onboard service workers at Brightline Florida voted to join the Transit5301Workers Union. Following that choice, Brightline sued the National5302Mediation Board to overturn the election, claiming that these workers5303have no right to organize as a railroad union. My question is twofold--53045305    a. Why do you believe that Brightline is not subject to the Railway5306Labor Act?53075308    b. And also, will Brightline continue to oppose any unionization of5309its Florida branch?5310    Answer. Brightline fully supports the right of our teammates to5311seek union representation. However, Brightline believes that the5312National Mediation Board (NMB) does not have jurisdiction in this5313instance.5314    Brightline's challenge to the jurisdiction of the NMB is pending in5315Federal Court in Florida.5316    The Railway Labor Act only applies to rail carriers who are also5317subject to the jurisdiction of the Surface Transportation Board (STB).5318Brightline operates solely within the State of Florida and is not part5319of the interstate rail network. Brightline is not subject to the STB's5320jurisdiction by virtue of a December 2012 decision.5321    This is a jurisdictional dispute. Not a dispute about whether we5322want our employees to have the ability to organize.5323                                 ______53245325  Response to Written Questions Submitted by Hon. Tammy Duckworth to5326                            Husein A. Cumber5327Question Topic: Rail Connectivity to Airports and Convention Centers5328    Question 1. As demand for air travel expands, better ground5329transportation connections will be critical. Enplanements at American5330airports are expected to grow from nearly 945 million in 2023 to 1.45331billion in 2040 and 1.7 billion in 2050. An estimated $19.3 billion is5332needed to improve access to and from our airports over the next five5333years alone. That is why Senator Blackburn and I introduced the5334bipartisan, bicameral Don't Miss Your Flight Act, which would create an5335incentive to invest in surface transportation improvements into and out5336of public airports.53375338    A. Mr. Cumber, based on Brightline's experience with its station at5339Orlando International Airport, how important is rail-to-airport5340connectivity, and would you recommend better rail-to-airport5341connectivity at other airports across the country?5342    Answer. Let me first commend you and Senator Blackburn for5343introducing the Don't Miss Your Flight Act. Any resources focused on5344alleviating congestion in our transportation system is critical for our5345growing economy. Connecting to Orlando International Airport is5346beneficial to both Brightline and the airport.53475348  1.  Orlando is a sprawling city with no single central location. For5349        example, there is the theme park region, college area,5350        downtown, and the convention center area. The only location5351        that acts as a central transportation hub is Orlando5352        International Airport. Therefore, it made sense to connect to5353        the airport and tie into an existing distribution network for5354        our passengers.53555356  2.  For the airport, our station becomes the hub of a new 120-gate5357        terminal. This major investment was announced right after our5358        decision to locate at the airport.53595360  3.  The airport is governed by a board that decades ago set a vision5361        for having an intercity passenger rail system connected into5362        the terminal. The board protected a rail corridor. Without this5363        foresight, it would have been cost prohibitive for Brightline5364        to put a station in the middle of the airport.53655366  4.  Orlando International Airport has direct flights to almost every5367        major city in the world. Floridians can now use Brightline to5368        connect to a major airport hub and connect non-stop to their5369        end destination.53705371    Having direct rail connections to major airports has a ridership5372benefit for the rail system but also provides new market opportunities5373for airlines.5374    For these reasons, dedicated funding to improve or create better5375rail-to-airport connectivity is important.53765377    B. Do you agree that we need to invest in improved surface5378transportation connections to airports to keep up with growing airline5379passenger demand?5380    Answer. This past week, the Transportation Security Administration5381reported a record-breaking 18.5 million travelers from July 1 to July53827. This is a remarkable comeback from just five years ago when the U.S.5383was dealing with the pandemic. It also shows that Americans will5384continue to bounce back and travel by air after tragic events. Our5385surface transportation system must keep up with how people are moving-5386and want to move-and including better highway, rail, and transit5387connections are all important.53885389    C. When improving rail-to-airport connectivity, how helpful do you5390believe it would be to connect convention centers to airports via rail?5391    Answer. Connecting Orlando International Airport to the Orange5392County Convention Center (and theme parks) is the next expansion phase5393for Brightline Florida. This connectivity will provide visitors with a5394transportation alternative to already congested highway systems. In5395many regions of the country, like Chicago, providing a direct5396connection between airports and convention centers would provide time5397and cost-efficient connectivity to visitors.53985399                                  [all]