NRC 2004: state of the association; RT & S asked NRC chairman Rick Ebersold and president Ray Chambers about the past year and what they believe is in the future for NRC

Railway Track and Structures, May, 2004

RT & S: You are in your first year as chairman of the NRC. How do you feel the organization is doing?

EBERSOLD: I can proudly report that The National Railroad Construction and Maintenance Association is currently as strong as it has ever been. Former Chairman Larry Laurello, Jr., left the organization in good shape and fiscally sound. Our core events, such as the annual conference, get better each and every year. We continue to roll out attractive new services, such as our recent NRC contractor equipment auction, which I'll talk more about later. Also, the NRC has been extremely active on Capitol Hill. The six-year highway-transit bill has been going through the reauthorization process and we have been working for greater inclusion of rail. Ray can speak to that in greater depth.

RT & S: What are your goals for the NRC?

EBERSOLD: I'm glad you asked, as I have a few very important goals for the NRC. First off, I intend to maintain and hopefully improve the NRC's strong financial position. Second, I intend to continue to improve our services to each and every one of our members. One of our most-important member services is the Roadway Worker Protection training that we offer. We have spent a lot of time and money getting this program off the ground and we are continuing to work hard on it. For the RWP program, we are set to announce shortly that the training and test will be available via CD-ROM to members for an annual fee, in addition to being available over the Web as it is currently offered. A second critical service is our legislative program in Washington. Within the past two years the survival of many of our companies was threatened by a drive to put us under railroad retirement and other expensive and antiquated programs that currently cover only operating railroads. With heavy lobbying and strong support from our construction unions, we have beaten that one back for the time being. I am also focused on maintaining our wonderful tradition of timely, important, well-organized and fun annual conferences. The next one is January 5-9, 2005, at the Sheraton Bal Harbour in Miami, Fla., but we can talk more about that later, too.

RT & S: Ray, what can you tell us about your recent legislative activities?

CHAMBERS: Transportation legislation is extremely active this year. While there is a veto threat out, I believe that the new Transportation Efficiency Act reauthorization will be funded at least at the $300 billion level for the next six years. I am very hopeful there will be a new commitment to railroad infrastructure in that bill. However, money is tight and expanded eligibility to any sector is controversial.

RT & S: What is the best shot for new rail spending this year?

CHAMBERS: It is hard to tell since it will be worked out in a House-Senate Conference. There is strong opposition by the current beneficiaries of the fund to any additional flexibility for intercity passenger and freight rail projects. Hopefully, Projects of National Significance will be adopted and funded at about $6 billion with rail eligibility. I believe railroad grade-crossing funding will be increased. I am hopeful some kind of freight corridors program will be worked out and that there will be additional flexibility in the traditional surface transportation programs, such as CMAQ. We are working hand in glove with the shortlines on their $1-billion infrastructure tax credit program. Senate Finance Chairman Chuck Grassley and Ranking Member Max Baucus have included our shortline tax credit proposal in a tax bill now on the Senate Floor. Unfortunately, that bill is in some trouble, for reasons having nothing to do with us. As we have this interview a filibuster is under way.

RT & S: How about future plans for your legislative program?

CHAMBERS: It is my personal goal to make NRC a leading voice in Washington on all issues relating to federal funding for rail infrastructure through a new generation of public-private partnerships. We are making progress. As I said, I will be very disappointed if we don't get something in the Highway-Transit reauthorization--but whatever we do get won't be nearly what is needed. The House-passed Highway-Transit Trust Fund bill contains a "re-opener," which means much of the program must be reauthorized in two years. Just as soon as the Highway-Transit bill is signed by the President, we plan to move hard to create a new coalition for rail infrastructure with NRC at the center. I would like to see a $1-billion grant program for small railroads connected to $7 billion in RRIF shortline loans. The RRIF loan program is starting to work and I think we can get its federal commitment ceiling expanded ten-fold from the current $3.5 billion to $35 billion. This idea is fully supported in the House Transportation and Infrastructure Committee. The other piece that I see is a tax credit bond program for railroads along the lines proposed by Senators Talent and Wyden. I think our goal should be a rail infrastructure program at a minimum level of $50 billion. We will move either with a stand-alone rail program or within the context of the Transportation Efficiency Act re-opener if that becomes part of the law. Rick and I hope to bring all the major players together at our annual conference in January to reach a consensus. We hope to have representatives there from the AAR, shortlines, the AGC, high-speed rail, transit and labor. Reaching a consensus is the only way we will ever get a major rail program through Congress.