California High-Speed Rail High-Speed Rail President

Next Steps for High-Speed Rail

We got good news today in hearing of John Kerry’s introduction of the High-Speed Rail for America Act. This proposed bill will go a long way in helping the construction of California’s high-speed rail system. The passage of Proposition 1A in California two weeks ago means $10 billion of guaranteed state-level funding for high-speed rail. The system as initially built will provide 225-mph service from Los Angeles to San Francisco; future extensions will include lines to Sacramento and San Diego.

But $10 billion in bonds isn’t nearly enough to pay for the entire project – the likely cost just for the first phase is three times that. The California High-Speed Rail Authority has been planning for this, and recognizes that it will have to find other sources, and so it has always recognized that its first challenge after winning public approval of the bond will be getting federal and private sources to chip in. While we’re a little skeptical of just how much private industry will get involved, especially considering the current economic climate, there is good evidence – compounded by news of Kerry’s bill – that the federal government will pay for a substantial amount of the project and make its construction by 2018 a real possibility.

Barack Obama’s stimulus plan will range, as predicted, from $150-300 billion dollars, a good sign, especially since Maryland Representative Chris Van Hollen argued that it would “more likely” be in the vicinity of $300 billion, according to U.S. News. Considering that high-speed rail will play a major role in carbon footprint reduction (Obama campaigned for $150 billion over the next 10 years for projects that contribute to that goal), as well as produce a large number of jobs, it is possible that the President-elect will include specific funds dedicated to high-speed rail.

And, in fact, Congress has prepared the Executive branch for the execution of just such a proposal with the passage of this year’s Passenger Rail Investment and Improvement Act, which also provided direct funds to Washington’s Metro and Amtrak. That bill has two significant provisions: one, providing direct matching grants to state governments that are interested in creating new intercity rail services; two, allowing for the funding of “high-speed” rail services, meaning anything traveling above 110-mph. These two elements essentially make it possible for state governments to get funding from the federal Department of Transportation for rail, just as they already do for highways.

The comparison with highways is an important one. Currently, states can receive up to 80% of funding for new interstate freeways from Washington. The Passenger Rail bill does not specify what percentage of the cost of new rail systems will be funded by the federal government, but if we consider rail to be a fundamental part of the national transportation network, 80% would be most fair. Realistically, however, such a constribution isn’t likely because of entrenched pro-highway and anti-rail forces, and that’s why California’s High-Speed Rail Authority pushed so hard to get the state to fund for itself the $10 billion bond, roughly a third of the total cost. If the state can argue that the federal government, in paying for highway programs, has set a precedent for future rail programs, it would be reasonable to suggest that the federal government cover two-thirds, or roughly $20 billion of the cost. If the Department of Transportation is unwilling to fund one project with so much of its budget, California’s congresspeople will have to consider earmarks to pay for the program. The system will not be built without significant federal dollars.

This is why John Kerry’s new high-speed rail bill, which he introduced to the Congress yesterday, is so important. We’ve been looking forward to this proposal for a few months now, and if passed, it would provide $10 billion over 10 years (of which $8 billion in six years) for projects in the Northeast and California, and $5.4 billion over 6 years for 10 other rail corridors around the country. Kerry’s press release quotes the Senator as saying that “A first-rate rail system would protect our environment, save families time and money, reduce our dependency on foreign oil, and help get our economy moving again. The High-Speed Rail for America Act will help fix our crumbling infrastructure system, expand our economy, and match high-tech rail systems across the globe.” Indeed, we couldn’t agree more.

Yet, and we hate to say it, Kerry’s bill – if passed – won’t provide enough funding. California needs $20 billion over the next ten years, not $10 billion to be shared with the Northeast Corridor, which also needs significant improvement in order to provide adequate service. And though $5.4 billion will do some for the other corridors, especially in terms of planning, far more than that will be needed to actually implement those programs.

We need another Interstate system, this time for rail. Kerry’s bill is a nice dip into the pond, but it’s nothing compared to the hundreds of billions of dollars being invested in rail infrastructure in Europe and Asia. France alone is investing more than 16 billion euros (this is just the national contribution) for 2000 more kilometers of TGV lines by 2020. China is investing one hundred billion dollars for thousands of miles of lines. And Spain has a plan for 7000 km of high-speed lines by 2010. Those are the kinds of step we need to make if we want to a make a vision of alternative mobility a realistic one.

Beijing Chicago Honolulu New York President

Chicago to Benefit from Obama Election; Beijing Commuter Rail; ARC Costs a Lot More

Finally, the end of a long and dramatic week!

The Wall Street Journal had a nice report today about the potential benefits of an Obama Presidency for Chicago, which needs funding for transit as well as for its fledging 2016 Olympics bid. It’s not hard to imagine that Obama will focus on his adopted home town, especially now that his White House Chief of Staff will be Rahm Emanuel, another Chicago native. Also, one of the new co-chairs of his transition team, Valerie Jarrett, who is the chair of the University of Chicago Medical Center’s Board, once was the chair the Chicago Transit Authority and worked in the city planning agency. She will be a strong proponent of transit and smart growth and she’s a good addition to the Obama team.

We will be discussing Obama’s influence on specific local projects, including the Chicago Olympics bid, in a post this weekend.

In Beijing, the government has announced the construction of a 100-kilometer suburban rail line which will provide efficient suburb-to-city centre commutes that are currently only realistically possible on the highways in automobiles. This comes on the heels of the city’s recent announcement that it will built two more subway lines, this in addition to the opening of three lines in July for the Olympic Games. Overall, the city plans 516 km of urban rail by 2015, up from 200 km today.

Note: by 2015, New York City will have (theoretically) completed the first phase of the Second Avenue Subway, a 4 km line. Don’t laugh, cry.

Meanwhile, in the New York Region, the Access to the Region’s Core project, which will provide a second rail tunnel from New Jersey to East Midtown, is now estimated to cost $8.7 billion. That’s $1 billion more than estimated last year. Based on the fact that the states of New York and New Jersey are approaching bankruptcy, either the federal government gets involved to a greater extent or this project isn’t happening.

Anyone think this project doens’t make that much sense, anyway? The new tunnels won’t connect New Jersey riders to the tracks at the existing Penn Station, meaning that through-running Amtrak trains can’t use them, and the terminus is on the West Side, which New Jersey commuters can already get to. Why isn’t the station being built in the vicinity of Grand Central instead? It would make a lot more sense.

Finally, opposition mounts in the Salt Lake area of Honolulu following yesterday’s announcement that the rail line that was approved this week might bypass that area in favor of providing better service to the airport. Expect further controversy before the situation is resolved…

High-Speed Rail Infrastructure President

Obama on Infrastructure; HSR Projects in UK and CA under Threat

Last night, Rachel Maddow spoke to Senator Barack Obama on MSNBC. The discussion turned almost immediately to infrustructure spending, though the two also talked about Afganistan and other not-as-interesting topics. You can watch the entire interview over at the Huffington Post, but I’ve transcribed the relevant stuff here:

Rachel Maddow: “There may be some policy fights ahead… if we are looking at economic stimulus, is there a possibility that you can see in your first term if you are elected, that we’d need an economic stimulus program that felt to Americans a little bit like a public works program, a little bit like an FDR-style infrastructure building program.”

Barack Obama: “Well I’ve actually talked about this, and I haven’t been hiding the ball on this; I think we have to rebuild our infrastructure. I mean, you look at what China’s doing right now, their trains are faster than us, their ports are better than us. They are preparing for a very competitive 21-st century economy, and we’re not. You know, one of the most frustrating things over the last eight years has been the ability of George Bush to pile up debt and huge deficits and not have anything to show for it, right? So if you’re going to run deficit spending, then it better be in rebuilding our roads, our bridges, our sewer lines, our water systems, laying broadband lines. One of the most important infrastructure projects that we need is a whole new electricity grid because if we’re going to be serious about renewable energy, I want to be able to get wind power from North Dakota to population centers like Chicago. And we’re going to have to have a smart grid if we’re going to have plug-in hybrids, then we want to be able to have ordinary consumers sell back the energy that’s produced by those car batteries back into the grid. That can create five million new jobs, just in new energy, but it’s huge projects that generally speaking you’re not going to have private enterprise want to take all those risks and we’re going to have to be involved in that process.”

Mr. Obama’s opinion on this issue couldn’t be clearer. As we noted yesterday, Democrats in the House and Senate are pushing forward on a massive $100-300 billion infrastructure, and Mr. Obama’s comments on this issue imply that he will push ahead, working to rebuild the nation’s physical plant. His specific note on the speed of Chinese trains implies that, as he’s said in the past, building a high-speed rail network is a major part of his program. Note that the remaking of the power grid that he discusses would be necessary to provide the power for such a system.

But in California, the likely first recipient of such a high-speed rail investment, speculation about voter fears on Prop 1a is rising. In an article in the L.A. Daily News, a pollster from the Field Organization argued that Californians have traditionally voted down large spending bills during recessions, and we most certainly are in the thick of one right now. A Bloomberg News article noted that private polling is suggesting that the measure is facing declining support as the economy continues into its downward spiral. Will this mean that Californians vote down this huge and important project? And will they also decide not to vote for Measure R in Los Angeles, which would raise the sales tax by half a percent to radically improve transit provision in that County? Five more days ’till we find out…

Meanwhile, the fight continues in England about whether to provide an HSR link between London, Birmingham, and Manchester, or whether to invest in a third runway for Heathrow airport. Read commentary in the Financial Times by the Tory Shadow Transport Minister Theresa Villiers here (pro-HSR), and by the Labor Transport Minister Geoff Hoon here (pro-airport expansion).

High-Speed Rail Infrastructure President

The Promise of an Obama Presidency

It’s been repeated over and over: Barack Obama is willing and interested to consider investing more in alternative transportation, whereas John McCain seems completely obsessed and uninterested in discussing anything other than “drill, baby, drill,” that disgusting catchphrase screamed out by attendees at the Republican National Convention back in September. Though Senator McCain repeatedly spoke out against Bush’s anti-environmentalism in the beginning of the Republican’s Presidency, any sense that McCain would depart from the current GOP obsession with feeding cars as much gasoline as possible seems unlikely.

Obama’s time in the Senate wasn’t marked by much effort to sponsor increased federal outlays for transportation. In the Illinois State Senate, he pushed for better METRA (commuter rail) service for his Hyde Park neighborhood in Chicago’s South Side. In the Senate, he has voted predictably Democratic, meaning that he has voted in favor of transit funding, but never made a big show by sponsoring a major increasing in funding. And on the campaign trail, Senator Obama’s rhetoric has shifted back and forth between progressive visions of a transportation future and the typical road-hugging rhetoric: following the populist panic that erupted post-gas price increases, he endorsed the idea of increased offshore drilling. But Obama has also countered with other ideas, namely a focus on the potential power of high speed rail, local transit, and biking to reshape our commuting habits.

McCain’s obsession with the “unfairness” of federal earmarks (which his running mate took full advantage of) would bring great pain to transit agencies all over the country, whose budgets – like it or not – are often reliant on those Congressional subsidies. And Obama, correctly, does not envision getting rid of the earmark system. So while McCain missed a preliminary vote and then voted against the recent Washington, D.C. Metro bill that provides the agency with billions of dollars of necessary aid, Obama made a point to vote for the bill several times, even in the midst of the busy campaign season. We can expect an Obama presidency to encourage transit funding. While it is unlikely that major changes in financing the Federal Transit Administration (FTA) will come from the White House, if Democratic Congressional leaders get it together enough to see the massive need for infrastructure investment in transit, they should expect no veto from this President.

But Obama may in fact stand out on an issue McCain has spent years fighting against: funding intercity rail. In vote after vote, McCain has made it more than clear that he has no interest in subsidizing the Amtrak network, and has vowed in the past to make every effort to push the system out of the government’s books. Stubborn in his commitments, McCain seems to have learned nothing from the success of European and Asian governments in constructing and maintaining high quality rail systems.

Obama’s choice of Senator Joe Biden as candidate for Vice President seemed to indicate that rail would indeed be a priority for the next Democratic administration. Biden, as has been widely reported, commuted each day to the Senate from his home in Wilmington, Delaware on Amtrak. He has indicated his strong support for the agency and the services he provides, and perhaps then it is no surprise that the Vice President of Amtrak’s board is Biden’s son. Biden, then, will contribute to Obama’s liking for intercity rail and the team is likely to explicitly suggest more funding for this transportation resource.

Perhaps more than any other specific investment, Obama has pointed out the potention of high speed rail in his “native” Midwest, where he has envisioned a corridor of railways connecting Chicago with Indianapolis, St. Louis, Columbus, and other declining formerly industrial cities. This does not depart significantly from the vision put forth by the Midwest High Speed Rail Association. Obama understands the ability of high speed rail to connect and revitalizing urban cores and also its great advantages over both automobile and airplane travel for trips of less than 500 miles.

So the growing interest in high speed rail – in California, the Southeast, and the Midwest – will be stimulated by an Obama Administration. Senator John Kerry’s gigantic future high speed rail bill – which was leaked in September – will be introduced in next year’s session. An Obama White House is likely to use its new power to force votes and eventual passage of the bill. An increase in high speed rail, then, seems likely to be one of the first projects of the new administration.

If like every President, Obama is interested in developing a built legacy, a potential model might be President Eisenhower’s Interstate System, whose thousands of miles of roadways, built with mostly federal support, have come to define the American built environment. An Obama Interstate Rail System, for example, would do the same for the 21st century.

One final note: when in Portland, Obama spoke of the importance of alternative forms of transportation such as biking, which plays a major role in the commute patterns of Oregonians. An Obama Presidency will find federal funds for alternative commutes – and encourage people to get out of their cars.

Tomorrow: what the next Administration needs to do to radically change the American transportation scene.

High-Speed Rail Infrastructure President

Bush’s Transportation Legacy: Corporatism

George W. Bush’s time in office has been marked by repeated and often successful attempts to use the power of the presidency for the benefit of large corporations. In fact, the Bush administration’s policy making, in opposition to the Goldwater/Reagan “limited government” views it claims to uphold, has erred on the side of increasing the size of the federal operation – in order to pass the goodies resulting from two wars on to some of the nation’s most wealthy and powerful corporations. As documented in Naomi Klein’s masterful The Shock Doctrine (2007), this policy was most disastrously implemented in the pursuit of the war in Iraq, during which giant corporate friends like Bechtel and Halliburton received giant, multi-billion-dollar contracts to conduct the failed “rebuilding” of that country, rather than allowing the Corps of Engineers or qualified Iraqis to do the job. As a result, the U.S. government spent large amounts of tax revenues to directly subsidize the growth of giant corporations whose productive output amounted to a few malfunctioning schools, a poorly maintained Iraqi electricity grid, and Taco Bell-outfitted U.S. military bases.

Less documented have been the results of a similar effort to remove the government from involvement in the production of infrastructure in the United States. Systematically, the Bush administration has attempted to sell off roads, railways, and ports to private investors, and has encouraged local governments, often the owners of such public assets, to do the same. This effort was made most conspicious during the Dubai Ports World controversy, in which the U.S. government tried to sell a series of ports (some of them already private). The heated congressional interchange mostly revolved around the dangers of selling ports to a middle eastern corporation, and the implication of the exchange was clear: the Bush Administration was more interested in selling public property to a private corporation than thinking about national security.

Transportation Department (DOT) Secretary Mary Peters has spent much of her lifetime in in the transportation industry, working for the Arizona Department of Transportation in 1998 and becoming its director in 1998. Bush appointed her to the directorship of the Federal Highway Administration (FHA) in 2001, and she replaced Norman Mineta (a Democrat and Commerce Secretary during the Clinton Administration) at the helm of the DOT in 2006.

The focus of her efforts at FHA and then at the helm of the DOT were on roads. From the beginning, though, Peters disavowed the method that had been implemented at the beginning of the construction of the Eisenhower Interstate Highway System in the 1950s. Rather than allocating money directly to state DOTs, which would then implement the national highway network, Peters de-emphasized the construction of new roads and even limited spending on refurbishing existing highways. Rather, this secretary envisioned a different infrastructure-building process: one that focused on Public-Private Partnerships, or PPPs.

The Secretary took as example the Chicago Skyway, which was originally completed in 1958 and which connects Chicago to northern Indiana. In 1995, the city – starved for resources – began negotiating its lease, and the result was a $1.8 billion, 99-year lease on the road which privatized this public resource for the benefit of yet another foreign company. The city received a huge lump sum, but the lease certainly put into question whether the city was getting a good deal. If a company was willing to put up front almost $2 billion for a toll road, couldn’t the city have made more money if it had kept the roads in its own hands? And wouldn’t a steady supply of several million dollars a year be worth more than one giant transaction?

But Peters, instead of recognizing that Chicago’s decision to sell the road was in fact a desperate search for cash, saw the light in the deal. Repeating the time-worn conservative mantra, she insisted that private industry “knows” how to do things better than the government does. As a result, in 2008, she proposed a radical change in the manner highways in the U.S. are funded: instead of taking advantage of the readily-diminishing gas tax, she argued that people pay to use the roads they use. In some ways, her argument made sense: the gas tax could not continue to provide adequate revenues as electric and hydrogen-based cars replace gasoline ones, and a user fee makes sense. (And that’s ultimately what the gas tax is: theoretically, the more gas you use, the more miles you drive. This obviously punishes people who drive gas guzzlers and rewards people in more efficient cars, of course.)

But instead of pushing for public agencies, which continue to own and operate the vast majority of the nation’s roads, to work for this solution, she pointed to the Skyway again, and argued that private companies should be hired to build, operate, and profit from the nation’s roads, which would in her vision almost all become tolled. In some cases, the public should pay private industry to build the roads, and then allow those same companies to profit from the roads once they’re constructed. Using dubious evidence that “poor people don’t use toll roads,” Peters argued that any effort to provide an equitable solution – in which the impoverished living in transit-deficient areas might get a discount – was unnecessary. Her approach was to remove the roads from the public sphere and transfer their ownership, and profit-making mechanism, to private industry.

Peters’ anti-public philosophy has been demonstrated in full force in the transit sphere, an environment a highway woman is likely to feel uncomfortable in. Since she became full fledged DOT Secretary, Peters has been embroiled in the dispute over the construction of the Dulles Metrorail Extension of the Washington, D.C. subway to the suburban Virginian airport. After years of promises, Peters seemingly without justification, suddenly announced that the project would not meet federal standards, even though the year before, the project had been supported. Her evidence was that the now 40-years-old D.C. Metro was having increasing infrastructure problems; rather than providing a funding mechanism to solve the problem, however, she simply announced that Metro would not be able to handle the desperately sought and needed subway extension. After being pressured by some powerful Republican members of the Virginia Congressional delegation as well as the members of the Bechtel contracting team which had been hired to build the project, Peters suddenly reversed course, as if realizing that this public project would in fact provide some private benefits and was therefore acceptable. The D.C. Metro’s failings suddenly escaped her notice.

And in fact, the Bush Administration has done little to invest in the nation’s older transit systems, such as those in New York City, Chicago, and Philadelphia, which are grossly under-maintained mostly because they are provided far fewer resources per user than smaller systems as a result of the federal government’s spending formula, which prioritizes small and medium towns’ transit networks. The New Starts program, which was intended to provide grants for new “fixed guideway” projects all over the country, has not had its resources increased with the rest of the federal budget, and the result is increasing inability for cities to finance new transit programs. The Small Starts program, which was intended for the construction of streetcar and BRT projects, was never allocated much of anything at all. Seeing New York’s subway fall into increasing decline even as traffic on the streets continued to mount, Peters encouraged the creation of Mayor Michael Bloomberg’s Congestion Zone, which would have charged drivers to enter Manhattan below 72nd Street. Favoring the wealthy over the poor, however, the system would not have guaranteed revenues to the transit system nor would it have ensured a lower fee for lower-income business owners and artists, some of whom truly are dependent on vehicles even in Manhattan. The inequitable program was defeated in the back rooms of the New York State Assembly, but the conservative mantra – the rich above the poor, the corporation above the people – stayed alive.

Nowhere more evident has this been true, in fact, than in the Bush Administration’s approach to intercity rail policy. The President, beginning early in his term, decreased his proposed allocations to Amtrak to nil. He claimed that the national railways should be self-sustaining, even though highways and airports are paid for by the public. Never mentioning that Japanese and French rail systems only became profitable once they had invested tens of billions of dollars in high-speed rail infrastructure, the President simply assumed that he could pass off Amtrak to private industry, and find a way for the business people to make money off of it. And in fact, one of the President’s only solutions to the problem was considering auctioning off the railroad’s Northeast Corridor, perhaps the nation’s most valuable single infrastructure asset, to the highest bidder. Let business take care of it – why should government invest in the public’s right-of-way?

Peters has reciprocated, doing virtually nothing in her post to push for intercity rail. This year, she proposed $30 million to new intercity rail projects nationwide, but the sum is so minimal it would only pay for about five miles of high speed rail track. It’s quite clear that the Bush Administration will do all it can to push transportation off of the docket of the public, and into the hands of someone else.

But the problem of this lack of investment is quite clear, as evidenced in 2007’s infamous Minneapolis bridge incident. We need a strong transportation infrastructure in the United States, or our country will literally fall apart. The public sphere exists to provide resources that the private sphere cannot, and to do so in an equitable way. By systematically finding ways to move public resources into private hands, by encouraging the use of tolling mechanisms that favor the wealthy, and by de-investing in transit and rail, the Bush Administration has done just the opposite. The result is a nation whose roads and railways are in significantly worse shape than they were eight years ago. According to the American Society of Civil Engineers, the country requires a mind-boggling $1.6 trillion dollars in infrastructure investment, just to bring it to a good condition. Clearly, we have a big task ahead of us.

It remains to be seen whether the next administration, whether Obama’s or McCain’s, will significantly change our broken system of infrastructure investment. Let it be clear, however, that for the future of this country, we better hope that it does.