DOT-designee confirmation hearing delayed

A scheduled confirmation hearing for former Rep. Ray LaHood (R-Ill.) to be President Obama’s transportation secretary was delayed to Jan. 21 by the Senate Commerce Committee owing to what was termed, still “incomplete paperwork.”

Although the committee said the postponement should not be viewed in a negative light, LaHood is under fire by some public interest groups for his aggressive advancement of so-called spending earmarks while he was in Congress. Earmarks are lawmaker-directed specific federal funding of a project in their district and often come as the price of a lawmaker supporting legislation.

A source told the Associated Press that the committee primarily wants to see the FBI background check on LaHood in the wake of revelations that the Obama designee for treasury secretary, Timiothy Geithner, failed to report fully his taxable income to the IRS. The source said there is no reason to believe LaHood has engaged in any wrongdoing, but the committee, nonetheless, wants to see the FBI background check prior to the hearing.

Nominations for other DOT agency heads, such as the Federal Railroad Administration and Federal Motor Carrier Safety Administration, are not expected until after a new DOT secretary is confirmed by the entire Senate.

Placing railroads more fully under antitrust law

On the legislative front, legislation supported by captive shippers, which would place railroads more fully under the antitrust laws has been introduced.

The Railroad Antitrust Enforcement Act was introduced simultaneously in the House (H.R. 233) by Rep. Tammy Baldwin (D-Wisc.) and in the Senate (S. 146) by Sen. Herb Kohl (D-Wisc.). The bills go before the judiciary committees of both chambers, where they were successfully reported out last year, but failed to gain floor votes.

The antitrust bills would eliminate the railroads’ exemptions from antitrust laws; allow the Federal Trade Commission to enforce collective rate agreements and rail mergers and acquisitions; and require the Surface Transportation Board to take into account the impact on shippers, consumers and affected communities when reviewing ratemaking agreements.

Legislation requiring more aggressive STB regulation

Expected to be introduced shortly in the House and Senate are similar bills to require more aggressive rail rate regulation by the Surface Transportation Board, which many shippers perceive as an agency too chummy with the railroads.

Frequently, railroads hire former STB officials to lucrative posts, sending – in the view of shippers and others – signals that if regulators “play ball” with the railroads, well-paying jobs await them down the road.

This legislation is supported by the chairs of the principal House and Senate authorizing committees – the House Transportation & Infrastructure Committee and the Senate Commerce Committee.

Although railroads call the legislation “reregulation,” the bills would not add new layers of regulation, but rather instruct the STB to be more aggressive in enforcing existing regulatory law.

Captive shippers assert that in the wake of the nation’s financial-services meltdown and resulting deep recession, it is becoming ever more apparent that Washington’s atmosphere of closing official eyes to regulatory responsibility has contributed to serious nationwide economic problems.

Rails seek investment tax credit

Finally, a bill to extend to railroads a 25 percent tax credit for capital investments – the Freight Rail Infrastructure Capacity Expansion Act of 2009 (H.R. 272) was introduced in the House. Qualifying expenditures would be for track expansions, intermodal facilities, yards, tunnels, communications, signal systems, bridges and locomotives.

The effort faces an uphill climb given rising federal budget deficits and the fact that railroads are among the few profitable industries in the U.S.

Congressional chairs confirmed

House Democrats have returned to key chairmanships the same individuals who held those posts in the previous Congress.

Rep. Jim Oberstar (D-Minn.) will continue to chair the House Transportation & Infrastructure Committee. The committee’s vice chair will be Rep. Nick Rahall (D-W.Va.).

Transportation subcommittee chairpersons will be:

Aviation:                         Jerry Costello (D-Ill.)

Highways & Transit:          Peter DeFazio (D-Ore.)

Maritime:                         Eligah Cummings (D-Md.)

Railroads:                        Corrine Brown (D-Fla.)