Laura Kingman/WSDOT King Street Station, Seattle, Washington States for Passenger Rail Coalition, Inc. ANNUAL REPORT 2016 s4prc.org The States for Passenger Mission Rail Coalition’s (SPRC) • Promote the research, development, implementation, operation, sustainability, and expansion of publicly goal is to advocate for supported intercity passenger rail services. • Provide members with prompt, timely and accurate ongoing federal funding information regarding intercity passenger rail developments and federal funding. and support for intercity • Raise our collective voice in support of a strong federal partnership to create a dedicated source of funding for capital investment in intercity passenger passenger rail initiatives rail equipment, infrastructure, and facilities. on behalf of its members; The Legislative Principles of SPRC and the Coalition’s Bylaws were adopted in September, 2014, and are available on the SPRC website at www.s4prc. 21 state departments org. In May, 2015, SPRC was notified by the Internal Revenue Service (IRS) that it is exempt from federal of transportation and 4 income tax under Section 501 (c). passenger rail authorities. Membership In 2015, the Coalition members were: California, Connecticut, Illinois, Indiana, Iowa, Los Angeles-San Diego-San Luis Obispo Rail Corridor, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, San Joaquin Joint Powers Authority, Vermont, Virginia, Washington, Wisconsin, Capitol Corridor Joint Powers Authority, and the Northern New England Passenger Rail Authority. In order to stay informed, to share information, and to discuss and develop positions on current issues, the Coalition continued to hold bi-weekly member conference calls throughout the year. SPRC also continued to retain contract staff to support its operations and initiatives. King Street Station, Seattle, Washington 1 2016 States State of the Coalition Remarks for Passenger Delivered at the fall 2016 SPRC Meeting We have a great agenda for our fall 2016 meeting today, and I’ll provide an overview of highlights since our last Rail Coalition face-to-face meeting in Washington during February 2016. Our Members: Today we will follow our customary format of having an open public session, then take a brief break and re-convene for our members-only business and work session. sponsored While we cannot escape the 24/7 news cycle focused on America’s election season and other newsworthy events, we are reminded there will be a tomorrow and thus another 30 transition to come. In fact there will be many transitions intercity and adjustments in the coming months in Washington passenger and in many of our states following the November 2016 routes elections. I know we all look forward to David Ewing’s informative and unique perspective on the challenges and opportunities we will face later this year and into 2017. David will be presenting in our public session following my remarks. For our work session later this afternoon we have invited served 296 Amtrak Board Vice Chair Jeffery Moreland to share with us communities the Board’s Vision for Service Partnerships. across America We also are pleased that FRA will be able to join us too. Michael Lestingi, Director of the Office of Policy & Planning and Beth Nachreiner, Chief of Passenger Rail Policy will brief us on what to expect over the next few months. After discussion with our guests, we have set aside some time for member dialogue of how best to address the carried almost 15M passengers challenges facing the intercity passenger services industry. On Wednesday afternoon, Amtrak’s new President and CEO, Charles “Wick” Moorman will meet with SPRC members. Mr. Moorman will be accompanied by Stephen Gardner, Amtrak’s Executive Vice President for the Northeast Corridor. That too will be a SPRC members only session and provide an opportunity for frank and open discussion. We contributed more than will provide more details about that meeting in our business session. $766M These opportunities to meet with senior Amtrak officials are a direct result of SPRC outreach earlier this year to to Amtrak Amtrak Board Chairman Anthony Coscia and a subsequent ($486 million in fare box revenues and meeting between our Executive Committee and Amtrak’s $280 million in operating support) Board. 2 Our Coalition now counts 24 state department of At our annual planning session of SPRC’s Executive transportation and authorities as members, yet I regret to Committee and support contractor, the Alliance, I asked report that Texas and Maryland have dropped their SPRC that we develop a scorecard to help us keep in mind the membership to focus their coalition efforts elsewhere. origins, responsibilities and participants for the Coalition, However I am very pleased to welcome our new members the Next Generation Equipment Committee, AASHTO’s in 2016, both from California, home of the locally-focused Standing Committee on Rail (SCORT) and the latest addition Joint Powers Authorities approach to intercity passenger to the ensemble, the State Amtrak Intercity Passenger Rail rail. Thank you for joining us to Jennifer Bergener and Committee (SAIPRC). Jason Jewell from the Los Angeles-San Diego-San Luis Please take a moment to review this draft summary of Obispo Corridor or LOSSAN. Thank you too to Brian Schmidt entities and get any comments you have to Pat soon. We will and Stacey Mortensen from the San Joaquin Joint Powers be giving this 1-pager the graphics treatment and publishing Authority. Welcome. it later this year. It Just as a reminder of too will be useful as the clout of our Coalition, a leave-behind for states and authorities transition briefings. sponsor 29 intercity SPRC members passenger routes serving have struggled, and 296 communities across continue to struggle, America. Last year our with the challenges of trains carried nearly 15 managing and funding million passengers. We our services, managing contributed more than service improvements, $788 million to Amtrak and making sure we ($565 million in fare address a myriad of box revenues and $223 Passengers onboard The Downeaster issues. million in operating Throughout the year, SPRC and its members persevered support). Included in your meeting handouts is a copy of our and worked diligently to continue to grow and improve 2015 State Impacts publication. the safety, security, comfort, and reliability of intercity 2016 has been a year when our Coalition continued to passenger rail travel across the country. Thank you Coalition build upon the solid organizational foundation we have built members for sharing some of those projects with us during over the past 14 years. Yes, the Coalition really is 14 years the roll call today. old! 2016 also has been a year when we strengthened our Service costs and being viewed as railroads by the bonds with an even greater dependence on each other. Federal Railroad Administration (FRA) are among our We experience this in our bi-weekly member calls where largest and ongoing challenges. We all feel the stresses of we share information, discuss and develop positions on key working through these issue areas and I thank our members issues. We do not always agree, but we take care to explore for their focus and collaboration. the range of options and reach a consensus which faithfully With FRA’s recent publication of the System Safety reflects the perspective of our members. Sometimes even bi- Rule this issue is very much upon our shoulders as service weekly calls are not enough, and so we also conduct ad hoc sponsors and as it impacts federalism and our member calls on specific issues. organizations ability to continue service and respond to a Through our frequent calls, we stay in touch, share our new list of responsibilities. achievements and concerns, and make decisions developed As the lame duck session and then the new Congress via harmony within the Coalition. With that strength and works through the legislative process, we are confident the trust we will continue to go forward. Coalition will again be welcomed by members and staff SPRC members face our industry challenges through alike to present our views. We will continue to make Hill leadership and participation in multiple organizations. Each visits when useful and speak out on the issues of importance of these organizations play important roles in achieving our to our members. progress. In fact many of us are represented in each of these groups. 3 This year, perhaps more than before, SPRC members have Looking forward to our next face-to-face meeting in develop a greater appreciation for how the legal process Washington early next year I expect to see a lot of new impacts our industry. Earlier this year we commented on faces. Among others we will have a new President, a new the Surface Transportation Board’s (STB) to define on-time Secretary of USDOT, a new Administrator at FRA and a new performance (OTP) and President/CEO at Amtrak. clarify their perspective We also expect to see new on preference granted to faces in the Congress, new passenger trains. Governors and perhaps The OTP saga continues changes in our own state as the freight railroads legislature as well. who asked for the STB No doubt this is an rulemaking now contest the environment where the STB’s authority to do so in merit and viability of our federal court. programs will be critically All eyes also continue examined and we may to follow the USDOT/USDOJ even see new faces in our legal team as they are down Coalition. to their last option, a return The Washington Cascades Thank you to our to the Supreme Court, in the members for your matter of who has authority to determine passenger train investment of time and energy, for your collaboration, and operating metrics. for your leadership to fairly and objectively work through the many challenges our industry presents.