WASHINGTON, D.C. — U.S. Rep. Don Young (R-Alaska) today requested information to determine if the Surface Transportation Board (STB) has “sufficient authority to prevent the wide-spread disruptions that might result in the Northeast and elsewhere from a shut down of Amtrak.”
Young, the Chairman of the U.S. House Transportation and Infrastructure Committee, made the request for information in a letter to Linda Morgan, the Chairman of the STB.
“The effects a shutdown of the Northeast Corridor would have on that region of the United States would certainly be substantial and adverse,” Young stated in his letter to Morgan. “An Amtrak shutdown could adversely affect the economy in the Northeast United States because shippers’ freight might not be able to get to its destination.
“Moreover, commuters in the Northeast and around the country may not be able to get to work either because the commuter authority operates on Amtrak infrastructure or because the commuter authority uses Amtrak employees to operate or maintain its trains.”
Young said he is specifically interested in determining if “the STB has sufficient authority to direct the dispatching, maintenance, or other operations on the Northeast Corridor that would permit continued commuter operations, freight operations, or both in the event that Amtrak begins to cease operations on July 1, 2002.”
Full Text Of Chairman Young’s Letter
Dear Madam Chairman:
I write to better understand the scope of the Surface Transportation Board’s (STB) authority to direct operations on the Northeast Corridor for the use of commuter and freight operators in the event that Amtrak ceases its operations.
As you are no doubt aware, Amtrak is in an extremely desperate financial situation. Amtrak contends it needs $200 million in additional cash, or it will cease operations on or about July 1, 2002. Although the Administration is considering an Amtrak application to use the Railroad Rehabilitation and Infrastructure Financing (RRIF) loan and loan guarantee program, it is doubtful Amtrak qualifies under the letter of the statute, under the formal regulations that govern the program, or under the informal rules imposed by the Department of Transportation and the Office of Management and Budget. To the extent the Administration determines that there must be waivers of requirements under the RRIF program for Amtrak to be eligible, those changes will be within the jurisdiction of my Committee. Similarly, it is unclear whether the appropriations process will be able to provide Amtrak any funds before July 1, 2002.
The effects a shutdown of the Northeast Corridor would have on that region of the United States would certainly be substantial and adverse. An Amtrak shutdown could adversely affect the economy in the Northeast United States because shippers’ freight might not be able to get to its destination. Moreover, commuters in the Northeast and around the country may not be able to get to work either because the commuter authority operates on Amtrak infrastructure or because the commuter authority uses Amtrak employees to operate or maintain its trains.
My question is whether under Sections 11102 and 11123 of Title 49, United States Code, and other potentially relevant statutes, the STB has sufficient authority to direct the dispatching, maintenance, or other operations on the Northeast Corridor that would permit continued commuter operations, freight operations, or both in the event that Amtrak begins to cease operations on July 1, 2002.
I would like your evaluation assuming two scenarios. First, assume that Amtrak begins to cease operations before the filing of a bankruptcy petition. Second, assume that Amtrak begins to cease operations after the filing of a bankruptcy petition, including the specific question of whether the extent of the STB’s emergency authority under the Bankruptcy Code is greater than under the provisions cited above.
I hope that you will look at this issue in an expeditious manner and provide me with your thoughts about whether the STB has sufficient authority to prevent the wide-spread disruptions that might result in the Northeast and elsewhere from a shut down of Amtrak. I would appreciate a response by tomorrow afternoon.
Sincerely,
/s/
DON YOUNG
Chairman