DOT Announces $2.4 Billion For 54 High-Speed Rail Projects

By Ji Hyun Yoo

Transportation Secretary Ray LaHood announced during a conference call Thursday that the U.S. will be delivering $2.4 billion in grants for 54 high-speed rail projects.

The projects are located in 23 states. According to DOT, the largest award went to California, which received more than $901 million, including $715 million for the construction of new high-speed rail lines.

LaHood said that the grants would help expand job creation and provide a boon to industry.

“States understand that high-speed rail represents a unique opportunity to create jobs, revitalize our manufacturing base, spur economic development and provide people with an environmentally friendly transportation option,” said LaHood.

The announcement follows the allocation of $8 billion in Recovery Act funds for high-speed rail projects at the start of the year.

Toyota President Accepts Responsibility For Deaths Due To Car Defects

By Laurel Brishel Prichard - University of New Mexico/Talk Radio News Service

Akio Toyoda, President of Toyota Motor Corporation, expressed extreme sorrow to the House Committee on Oversight and Government Reform on Wednesday. Toyoda said he was deeply saddened over the deaths of over 30 Toyota drivers due to gas pedal malfunctions, and said he took full responsibility for the accidents.

The automaker's head assured the committee that his company prioritizes safety over anything else.

“I myself, as well as Toyota, am not perfect. At times, we do find defects. But in such situations, we always stop, strive to understand the problem, and make changes to improve further. In the name of the company, its long-standing tradition and pride, we never run away form our problems or pretend we don’t notice them,” said Toyoda.

The National Highway Traffic Safety Association (NHSTA) has attributed 34 deaths to the ‘unintended acceleration’ of the Toyota vehicles. This number tops the 27 deaths caused by Ford Pintos in the 1970’s.

“It turns out that people from all over the country had been complaining about sudden acceleration in Toyota vehicles for years, and what people are wondering is, “Am I next?”,”said the committee's Chairman Edolphus Towns (D-N.Y.).

Department of Transportation Secretary Ray LaHood testified earlier in the day, and reiterated his recent warning to drivers that continuing to drive cars which have been recalled is unsafe. LaHood, who faced an onslaught of grilling from lawmakers during the hearing, stressed that safety has and will always be the top priority of the NHSTA, and reminded the committee that the department had pressed Toyota to issue the recall of the 2.3 million vehicles that were fitted with the pedals.

“We haven't been sitting around on our hands. When people complain, we investigate. When there needs to be a recall, we do it,” LaHood insisted.

LaHood urged Toyota customers to check the Department of Transportation's website to see if their car has been recalled, and implored anyone at risk to take their car to the nearest Toyota dealership immediately.

House Energy And Commerce Committee Split Over Who Should Regulate Unsafe Driving

By Julianne LaJeunesse- University of New Mexico-Talk Radio News Service

House Energy and Commerce Committee members met with Department of Transportation Sec. Ray LaHood, Federal Communications Commission Chairman Julius Genachowski, and transportation experts Wednesday, to discuss who- the federal government or states- would be responsible for ensuring drivers avoid text messaging, using cellular phones, and working GPS systems while on the road.

The committee members agreed that distracted driving is dangerous and should be regulated, and some committee members, such as Virgin Island’s Representative Donna Christensen (D-V.I.), even admitted to texting or using their cell phones while driving. However, when it came to the question of who should regulate the rules of the road, the committee split.

Rep. John Shimkus (R- Ill.) put it bluntly: “Distracted driving is bad,” he said. However, he added, “I have never been for the federal government extorting highway funds to obtain some means to an end that should be decided through the state.”

Rep. John Dingell (D-Mich.) also expressed questions about potentially changing laws, saying he urged his colleagues to create thoughtful, flexible, and “sound” policy.

“Although we share a justified measure of concern about the relationship between use of certain technological devices and driver safety, we have to guard against enthusiastically overly prescriptive statutes... that in the long term may stifle innovation and ultimately show them to be of marginal benefit to the cause of improving driver safety,” he said.

Other representatives, such as Marsha Blackburn (R-Tenn.), said federally mandating laws that would reduce distracted driving may seem “weary,” but said Congress could consider federally mandating public education on distracted driving.

As of last month, according to the Governors Highway Safety Association, six states including California, New York, and Oregon, had banned nearly all cell phone use while driving, and 18 states had banned text messaging while driving.

Dept. Of Transportation Urged To Investigate Cash For Clunkers Scams

By Laura Woodhead

Consumer protection groups urged the Department of Transportation (DOT) Thursday to investigate scams stemming from the Car Allowance Rebate System, commonly called Cash For Clunkers, in a letter sent to Secretary of Transportation Ray LaHood.

According to the groups, some dealers are making customers sign liability waivers that will result in the consumer being held liable if the dealer is not given a rebate by the government, despite being accepted by the dealer as meeting all "Cash for Clunkers" standards. According to these contracts, the consumer would have to pay up the loss or risk losing their new car, even if their old car had already been crushed, said Joe Ridout, spokesman for Consumer Action during a conference call with reporters.

"We are troubled by this disturbing new trend," said Ridout. "Frankly, we feel that dealers should be bending over backwards in gratitude to car buyers, who in their role as tax payers, provided this financial lifeline to dealerships."

"The DOT should send a clear message that car buyers should in no way be liable," he added. "Dealers have reaped the benefits of the program and should be made to play by its rules."

The letter also called for an investigation into so called "double dipping," in which dealers deliberately mislead the consumer into paying the "Cash for Clunkers" payment upfront under the promise they will receive the check for $4500 later, only to have the dealer take the money and later tell them that their car did not qualify.

"Some are taking advantage of consumers who are still confused about the program," Ridout said. This puts consumers "at risk of being charged twice, once as a taxpayer footing the bill for this subsidy to assist car dealerships and the second time as a customer of a dealer known to double dip."

Rosemary Shahan, President of Consumers for Auto Reliability and Safety, said that she understood the anxiety that was behind the contingency contracts, when many dealers were unsure of how long the program would last or if they would recieve a check. However, it should be them, not the consumer that carried the liability, Shahan said.

"A lot of them have gone out on a limb and entered into a lot of contracts on the promise the money is forthcoming and they are still waiting for the deals to be processed," Shahan said. "The question is: should consumers take the risk when dealers know what they are getting into?"

"If the dealers decides, given all the unknowns, that they want to go ahead and offer these [Cash for Clunkers] contracts they should be assuming the risks and argue it out with the government,” she said.

In response to the letter, the DOT has placed a warning on the Cash for Clunkers website (www.cars.gov) telling customers that "consumers are not required to sign contingency agreements to pay back the dealer should the cars credit be rejected."

"We Are Eating The Seed Corn"

Coffee Brown, University of New Mexico, Talk Radio News

“We are eating the seed-corn of the investments we made in the 1960’s” in roads and other components of distribution infrastructure, says Sen. Mark Warner, (D-Va.).

Funding is the big issue, and it doesn’t help that congress traditionally divides the distribution into sector into pieces: rail, road, waterways, air, etc, as well as geographic divisions. What’s needed, he said, is greater “multimodal integration.”

All of the speakers at The Council on Competitiveness Seminar on "Is America's Transportation Infrastructure Ready for Global Trade?" echoed that point over the course of their talks.

Four of America’s five major economic sectors depend on the fifth, transportation and distribution, which provides 11 million jobs. Domestic, internal, transport accounts for 85 percent of all commercial transport in the U.S. This “logistic structure” is valued at 10 percent of GDP, according to Commerce Secretary Gary Locke, and that’s the lowest in the world, meaning one of the most efficient.

Transportation Secretary Ray LaHood said the U.S. moves 50 million tons of goods per day, and our supply lines have helped America to remain competitive for 250 years, but now urban congestion and neglected infrastructure are compromising supply line efficiency.

“It’s about more than asphalt,” Warner said. “Supply is about moving goods, but it’s also about moving ideas.” Warner, whose business is telecommunication, advocates including broadband conduits into all new roads in order to extend the broadband infrastructure as inclusively and proactively as possible. “We’re still 15th in the world in terms of broadband environment,” he finished.

Council on Competitiveness President Deborah Wince-Smith extended the topic back to a global scale. “Sales from foreign affiliates of U.S. companies are three times total domestic sales,” she said, and therefore supply line efficiency is important to international competitiveness.

Douglas Oberhelman, Group President, Caterpillar, Said he sometimes can get shipments from Hong Kong faster than he can get them from an American port to their final destination within the U.S.

Overall the diverse group of speakers highlighted that global competitiveness requires:
1. Renovation and expansion of the infrastructure of roads and highways.
2. Smart distribution systems, in the form of information technology and associated technologies like RFID and sensors.
3. A return to education, science, and engineering as national values.
4. integrated, consistent, standardized, stable policies across modalities, regions, tax policy, energy policy and broadband information technology.