Taking Responsible Action for Community Safety Act

Press Release

TAKING RESPONSIBLE ACTION FOR COMMUNITY SAFETY ACT -- (House of Representatives - September 27, 2008)

Mr. SHUSTER. I would like to yield myself 30 seconds just to respond to what the gentleman mentioned about the automotive industry and the $25 billion loan they want and about the $700 billion.

Well, the good news in this debate today about the railroad industry is that the railroad doesn't need it. The railroad industry is successful, and we need to make sure that they continue to be successful and that they don't require any kind of assistance from the Federal Government. They're the only freight rail system in the world that doesn't require the Federal Government's propping it up. So that's a good news story here today, and that's what we want to keep doing.

I would also like to submit for the RECORD a letter from the Association of American Railroads and the short lines in this country that are directly affected by this legislation, and they are opposed to it.

ASSOCIATION OF AMERICAN RAILROADS,

Washington, DC, September 27, 2008.

DEAR REPRESENTATIVE: The House may consider H.R. 6707 on the suspension calendar today. The Association of American Railroads (AAR) and the American Short Line and Regional Railroad Association (ASLRRA) strongly oppose H.R. 6707--Taking Responsible Action for Community Safety Act.

Under current law, the Surface Transportation Board (STB) must evaluate the merits of a railroad merger transaction under a ``public interest'' standard if it involves two Class I railroads. The STB's evaluation takes into account and weighs all issues relevant to the public interest including efficiencies, productivity gains, capacity improvements, and environmental benefits that the transaction will realize.

H.R. 6707 would distort that standard and STB evaluation process by requiring the STB to specifically weigh the adverse impacts on safety and local communities against the transportation benefits of a merger.

The bill's mandate for the STB's evaluation to specificallly focus on the impact on local communities as a counterweight to the overall transportation benefits that a merger would otherwise realize can result in the disapproval of mergers with significant benefits to the public and to the nation solely because of ``nimby''ism. This would clearly be at odds with rail transportation policy at 49 USC 10101 which has as a goal the development sound transportation system to meet the needs of the public.

The bill's requirement for a specific STB focus on local impacts creates an additional regulatory burden and imposes potentially conflicting regulatory requirements. The costs and uncertainties arising from the proposed regulatory process will further discourage parties from entering into transactions that could otherwise bring significant transportation and other public benefits,

For all of the above reasons we strongly urge a no vote on H.R. 8707.

Edward R. Hamberger,
President & Chief Executive Officer, Association of American Railroads.

Richard Timmons,
President & Treasurer, American Short Line & Regional Railroad Association.

Mr. SHUSTER. I would like to now yield 3 minutes to the gentlewoman from Illinois (Mrs. Biggert).

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