T&I Committee Marks Up Surface Transportation Bill, GSA and Army Corps Resolutions

Press Release

Legislation directing the Surface Transportation Board (STB) to consider the potential impact on the public interest and the environment prior to approving a proposed rail transaction was cleared for floor consideration today. The Committee on Transportation and Infrastructure marked up and ordered reported the Taking Responsible Action for Community Safety Act (H.R. 6707), as well as the General Services Administration Capital Investment and Leasing Program Resolutions and the U.S. Army Corps of Engineers Survey Resolutions.

H.R. 6707 establishes that when the STB considers a merger involving a Class I railroad and a Class II or III railroad, it has the authority to disapprove the merger if it finds that the adverse environmental or public safety effects of the merger outweigh its transportation benefits. Under current law, the STB cannot deny a merger between a Class I railroad and a Class II or III railroad unless the transaction would result in a substantial lessening of competition and the transaction's anticompetitive effects outweigh the public interest in meeting significant transportation needs. The Board has never disapproved of a Class I merger on environmental grounds.

The legislation, which was introduced on July 31, came in response to an application filed last year by the Canadian National Railway (CN) seeking the STB's approval to acquire control of the 198-mile Elgin, Joliet, and Eastern (EJ&E) rail line encircling Chicago from Waukegan, Illinois to Gary, Indiana. CN plans to use the EJ&E tracks to establish a continuous route around Chicago, which would significantly increase traffic for 50 communities along the rail line.

"In what may be our Committee's final markup in the 110th Congress, we have taken steps to help local communities that may be facing a serious threat to their quality of life. The communities impacted by CN's proposed transaction have raised serious concerns about public safety in regard to grade crossings and hazardous materials transportation, as well as the potential for job losses and excessive noise," said Rep. James L. Oberstar (Minn.), the Committee's Chairman. "In H.R. 6707, we have made it clear that the STB must consider, in a merger or consolidation proceeding, the potential adverse impacts on safety and the environment, including possible negative consequences on local communities. The purpose of this bill is not to prevent mergers, but to give residents more input on a proposed rail transaction that will affect their communities."

Under this legislation, the STB must evaluate potential adverse effects on public safety, grade crossing safety, hazardous materials transportation safety, emergency response time, noise, and economic impacts. The bill also authorizes the STB to impose conditions to mitigate the effects of the transaction on local communities when those conditions are in the public interest. The manager's amendment, which the Committee approved today, clarifies that the STB should consider both the positive and negative consequences of a proposed transaction. It also clarifies that the STB's definition of "public interest" includes the safety and environmental effects of a proposed transaction, as well as the effect of a proposed transaction on intercity rail passenger transportation and commuter rail passenger transportation.

In addition, the Committee approved 35 resolutions authorizing appropriations for the General Services Administration's (GSA) Fiscal Year 2009 Capital Investment and Leasing Program, including four construction resolutions (authorizing $937.6 million), five repair and alteration resolutions (authorizing $266.5 million), and 26 lease resolutions (authorizing $196.6 million annually). Major projects include construction of the Department of Homeland Security on St. Elizabeths Campus, Washington, D.C., construction of the San Ysidro U.S. Port of Entry, San Diego, CA, and repair and alterations to the West Wing of the White House.

"Our Subcommittee held a hearing earlier this year examining the need for comprehensive reform of the GSA leasing and construction process in order to make it more efficient and less costly for all concerned," said Del. Eleanor Holmes Norton (D.C.), Chairwoman of the Subcommittee on Economic Development, Public Buildings, and Emergency Management. "I look forward to continuing to work with the GSA in the next Congress to ensure that the 1,532 Federally-owned properties and the 7,100 leased properties provide the best possible value for the American taxpayers."

The Committee also approved 28 U.S. Army Corps of Engineers Survey Resolutions. Each survey resolution authorizes a two-phase study process. Under Corps' policies, the maximum allowable cost of the initial, reconnaissance phase of the study is $100,000. The cost of the second, feasibility phase will be determined during the reconnaissance study.

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