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Press Release

CASTOR: CONGRESS IMPROVES INVESTMENT IN RAIL AS GAS PRICES SKYROCKET

Congresswoman Kathy Castor and Transportation and Infrastructure Committee Chairman Jim Oberstar request General Accountability Office (GAO) study on liability and indemnity agreements governing commuter and intercity passenger rail services following controversy over CSX deal during state legislative session.

Congresswoman Kathy Castor and Transportation and Infrastructure Committee Chairman Jim Oberstar request General Accountability Office (GAO) study on liability and indemnity agreements governing commuter and intercity passenger rail services following controversy over CSX deal during state legislative session.

For the first time since 1997 and as the national average for a gallon of regular unleaded gasoline hit $4, Congresswoman Kathy Castor and the powerful House Rules Committee moved the Passenger Rail Investment and Improvement Act of 2008 to the floor of the House for consideration today. The Act is likely to pass and be sent to President Bush who has threatened a veto.

"New investments in rail transportation are vital to our economy as congestion continues to increase on highways and in the air, the cost of gas continues to increase, and concerns over global climate change particularly on coastal states like Florida continue to escalate," said Castor. During the House Rules Committee meeting yesterday Castor asked Chairman Oberstar what the future holds for Amtrak intercity rail in Florida. Oberstar declared that "It is coming down the tracks like a freight train."

Due to the controversy surrounding the CSX central Florida rail plan and similar issues in Massachusetts, Castor worked closely with her colleague Congressman James P. McGovern (D-Mass.), Chairman Oberstar, and Congressman John W. Olver, Chairman of the House Appropriations Subcommittee on Transportation and HUD to secure a GAO study of liability and indemnity agreements governing commuter and intercity passenger rail services and report no later than December 9, 2009.

"The majority of tracks in our country are almost entirely owned by freight railroads, which in turn cause states and multi-state compacts to negotiate with freight railroads for any service adjustments or improvements," said Castor. "We are asking the GAO to examine the current agreements and new agreements between operators of commuter rail public transportation, freight railroads, and Amtrak, including liability provisions and indemnity agreements, and look at how the Federal and State courts have interpreted these agreements and what the financial obligations of these agreements have meant to Amtrak and the States."

The letter comes on the heels of the controversy surrounding the $1.2 billion Central Florida commuter rail project during the 2008 Florida legislature session due to questions regarding proposed no-fault liability arrangement between the state and CSX. "Rail transportation is vital to Florida’s future so hopefully this study will help all involved sort out financial issues," noted Castor.

The Passenger Rail Investment and Improvement Act (AMTRAK Reauthorization) sets $2.5 billion for State Capital grants for facilities, equipment, infrastructure, etc, for intercity passenger rail. A state capital grant for Intercity Passenger Rail Service could be used to help implement a statewide rail plan that would ease congestion, decrease greenhouse gasses, and provide affordable choices for Florida travelers. A congestion grant could improve service between Tampa and Orlando, easing traffic on the I-4 corridor.

The bill also provides funding for disabled access to passenger rail and plans for the restoration of passenger service on the Sunset Limited, which includes many stops along the crowded I-4 corridor.

"My neighbors are being squeezed, with gas now at $4 a gallon and the rising costs of food, health care and education," said Castor. "This bill will help find fair and affordable solutions for them in traveling across the state."

Castor represents Florida’s 11th Congressional District, which covers parts of Hillsborough, Pinellas and Manatee counties.