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Mr. WOLF. Thank you very much. Mr. Sabo? Mr. Packard? Thank you very much. The Committee will recess until after this vote, and resume right afterwards.

[Recess.]

Mr. WOLF [presiding]. The hearing will come to order.

Mr. Filner? Could we get your attention, please. Mr. Filner, your full statement will appear in the record as read.

WEDNESDAY, FEBRUARY 10, 1999.

SAN DIEGO TRANSPORTATION PROJECTS

WITNESS

HON. BOB FILNER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA

Mr. FILNER. Thank you, Mr. Chairman, and I appreciate the chance to testify with you this morning, my colleagues. And, as you said, my full statement has been submitted, and I know you'll make it part of the record.

I represent San Diego, California, an area which I think illustrates the close connection between what you all are doing here on your subcommittee, that is, dealing with the transportation infrastructure of our Nation; and the close connection between that transportation infrastructure and economic growth. And the projects I want to speak to you this morning about reflect that connection between transportation infrastructure and economic opportunity.

In ISTEA this year-for the first time, as I understand it-there is a program which is called the light density rail pilot project program. There is great interest in this program all around the country, both in some urban areas and in numerous rural communities, who see it as a real means to jump start their economic growth. The program is authorized for $17 million per year, and I urge the committee to appropriate that full amount.

Grants are for capital improvements and rehabilitation of what are called class two and class three railroads, which are those with less than $250,000,000 of annual gross revenues. These are not earmarks. There's no pork in this. It is a competitive program, which will benefit projects throughout the Nation and has enjoyed bipartisan support, and small railroads and shortline railroads all over the Nation would be helped by this program, which would provide access to numerous communities, to other markets, and provide good jobs.

As this committee knows, the Chairman well knows, and I know Mr. Packard from my own county well knows, one of the applicants for this program would be the San Diego and Arizona Eastern Railroad, which, if rehabilitated, a 100-mile shortline railroad, which would give San Diego, California, for the first time direct rail access to eastern United States and transform the whole economy of our region. But that railroad would then be in competition with numerous other shortline railroads around the country for that funding. So, I hope you look favorable on that program.

I know this committee and the Chairman have not-are not looking to fund individual highway projects in this-in your bill. I do

want to point out, of course, the needs across the country that remain. In our highway program, especially along the U.S.-Mexico border in the district I represent, because of NAFTA, that is, Federal policy, the traffic across the border has increased dramatically. We have gone from a few hundred trucks per day across the border crossing in my district to more than 3,000, which represents a 40 percent to 50 percent of all the traffic between our two nations. And yet, when we passed NAFTA, we saw the jump in this commerce, but the infrastructure was not planned for. And so we have no interstate highway system that takes those trucks from the border crossing to the interstate highway system. We have a road, State Route 905, which is now planned for that. And we hope to get that operating within about four or five years, but we need to close a funding gap for that. And I turn to the Federal Government because it was Federal policy that put all the burden on that city street, which we need to now make into a-basically an inter-state highway to bring that commerce into our Nation.

It's not just for San Diego. In fact, you know, 95 percent of it bypasses San Diego. It brings that commerce to the rest of the Nation.

Lastly, Mr. Chairman, I would like to underline the need in San Diego and add my voice to those of my colleagues in the county to provide the funding for what is called the Mission Valley East Trolley Extension. The Clinton budget proposes $35 million for this effort. The project is capable of completing-of completely obligating $60 million during Fiscal Year 2000.

I think you all understand the great potential for mass transit and light trolley lines for helping cities. In this case, this particular part of the line, which will almost complete our, San Diego's, light rail system will provide affordable options for those in our community who are most dependent on public transportation as they try to get to work.

This line would link the major universities in our area with downtown and the work that people go to-medical and commercial centers and the like. So, this light rail system is very, very important to San Diego.

You have my full testimony. These are the things we're interested in in our region. The projects I mentioned are all rated at the top of the list, both in our city, our county, and our State. These are not just highly thought of in my district. They have from the State through the county and city the top priority listings that I'm bringing you here today, and I appreciate the efforts of this committee.

Mr. WOLF. Thank you, Mr. Filner. Mr. Sabo? Any questions from anybody?

Mr. PACKARD. Yes, Mr. Chairman, may I simply say that I support these projects. I am very familiar with them. They are very close to my district, and they will be addressed in my letter when it comes, from me to you.

One question I might have. I read yesterday in one of my local clippings that a section of the San Diego-Arizona Eastern Rail section-the portion that is in Mexico, that goes down into Mexico, the bidder that was to operate that section backed away from their bid. What will happen and how will that impact the overall line?

Mr. FILNER. Thank you, Mr. Packard, and thank you for your strong support for these projects. Just for those just I'll be very brief. This rail line that I mentioned, and Mr. Wolf is fully familiar with it, is a 100-mile-long railroad. By the accident of history, about 50 miles of the length of the railroad is in Mexico, and 50 miles is in the United States. I see this as a great opportunity for binational cooperation that will produce thousands of jobs in each country. But it requires the cooperation of both countries.

Both the the lines in both countries are publicly owned: the regional transportation entity in the United States; and the Federal Government in Mexico. And both countries have decided to privatize their sections of the line. That has occurred in the United States. A U.S. firm has the franchise to operate that line. The Mexicans put out a bid which was won by a Mexican company. They apparently overbid for their on their on the franchise and have not performed. So, they have notified the Mexican government they will not be taking that franchise.

I am told I was just informed by the Mexican ambassador that the rebidding will open within 30 days, and they hope to conclude that within 60 days after that. Once each side of the line is privatized, then negotiations will go forward and the line will be open in a relatively short amount of time.

And, as you know, everybody in San Diego, with one exception

Mr. WOLF. Not everybody.

Mr. FILNER. He doesn't live in San Diego. One exception supports that, so I-you know that.

Mr. WOLF. Just for the record, I'll ask Congressman Hunter, and I know your delegation is divided-is very strongly opposed to it. But more, I think not on the economic issue, but on the issue of drugs. And it was an article in today's Washington Post about that. We will decertify Mexico or not. I would urge you-this-our money is so tight, it's beyond. I mean, if you add up just the figures that have come in today. But I would urge you to sit down with Congressman Hunter and talk about whether or not DEA gets involved and looks at agents and customs and different things on the border so that this thing ever were to go, you're able to have those an

swers.

So, I would encourage the delegation to sit down with Mr. Hunter, and Mr. Hunter, you know, and you can

Mr. FILNER. Right. I appreciate that.

Mr. WOLF. That would really go a long way. But

Mr. FILNER. We will send your staff, Mr. Chairman, under the request from Congressman Hunter, myself, we asked the GAO to look at that issue. And there's a report which says that approximately 30 to 35 new agents would handle the issues, so I will send you that report.

Mr. WOLF. Okay.

Mr. FILNER. But we have been discussing this, and Mr. Packard has played a strong role in those negotiations.

Mr. WOLF. And maybe you could go before Commerce, Justice and State Subcommittee and ask for or Treasury-I guess that would be Treasury appropriations-to ask for some funding, which would I think help us in the effort. Mr. Sabo? Thank you. Your full

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statement will appear in the record. In the interest of allowing Mr. Regula to return to his hearing that he's chairing, we'll just go out of order just for a minute and recognize Mr. Regula to introduce his witness, and also Congressman-Congresswoman Tubbs Jones. And Mr. Payne will be next after that.

Mr. FILNER. I thank the Chair.

[The prepared statement of Bob Filner follows:]

[blocks in formation]

Mr. Chairman, thank you for this opportunity to provide testimony on the
transportation projects that are most important to San Diego. The projects I am
bringing to your attention for funding in Fiscal Year 2000 are:

1) San Diego & Arizona Eastern Railroad and
Light Density Rail Pilot Project Program;

2) State Route 905; and

3) the Mission Valley East trolley extension.

SAN DIEGO & ARIZONA EASTERN RAILROAD and

LIGHT DENSITY RAIL PILOT PROJECTS PROGRAM

There is great interest in this pilot project program around the country and
numerous rural communities view it as a real means to jump start their
economies. The program is authorized for $17 million per year, and I urge the
Committee to appropriate this full amount.

A transportation project that would benefit from this program and has the most
potential for San Diego's economic growth is the re-establishment of the San
Diego & Arizona Eastern Railroad. This rail line will provide a direct rail link
between San Diego and the rest of our country--a fundamental link that will
enable the Port of San Diego to expand its ability to handle cargo. This rail is
critical to our community's economic future by possessing the real ability to
transform the region's entire economy.

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