really just a concession to economic reality. Clearly, you cannot run a light density short line on the same economics as a Class I Burlington Northern. And because there is no flexibility in today's labor agreements, the only way to address those demographic changes is through spinoff. That will either continue or end, depending on whether the work rules are modernized.

REAL ESTATE HOLDINGS OF RAILROADS

Mr. LEHMAN. Mr. Coughlin, would you yield? What about the real estate holdings of railroads? In my district, some of the most valuable real estate near the bay is owned by the Florida-East Coast Railroad. They are putting more money back into their roadbeds so they will be there for a while. But you read about what is happening on the New Jersey waterfront across from New Yorkthose old rail lines around Hoboken have become regentrified into new real estate development. This is happening all around the country.

Rail lines are now found in locations that the railroad cannot afford to run because of the value of the real estate. Do you see some changes there?

Mr. RILEY. Well, I think that changes are going to be forced by tax laws, because I know of cases where small- or medium-sized railroads have properties that are valuable that they would like to develop but cannot take the tax load on carrying them to the point where they can develop them. So as a consequence, they sell them. While selling them does produce a one-time influx of cash, it might be better over the long term for them to retain the line. Because in the end, the property you own adjacent to your line is best used if it is sold to a business that can ship on you or leased to a business that can ship on you. That is the best use of the property.

If you want to see a railroad that does that well, look at the Canadian Pacific.

Mr. LEHMAN. Thank you. Mr. Coughlin, you may proceed.

SUPERCONDUCTOR TECHNOLOGY IMPACT

Mr. COUGHLIN (presiding). Of course, an international race is under way to perfect superconductor material. One of the most promising uses of superconductors is to transmit electricity over long distances with little efficiency loss. If this were perfected, what would it mean to our coal-hauling railroads and to the railroad industry in general?

Development of superconductor technology would clearly have major effects on railroads as well as the industries they serve. First, the railroads themselves could be powered and operated in entirely different ways using superconductors. Second, with the elimination of energy loss in the transmission of electric energy, the need for power stations to be built near the areas where the electricity is consumed could also be diminished or eliminated. This could dramatically affect the demand for transportation of coal, the commodity representing more than 40 percent of all railroad freight tonnage. Is is also likely that the method of generating power could change; it is not clear that the nation would build coal-fired plants in an age of superconductor technology.

For the foreseeable future, even after introduction of superconducting technology, bulk commodities other than coal, such as grain, phosphates, and chemicals, would probably continue to be carried by rail perhaps joined by increased movements of time-sensitive manufactured goods that could be handled with increased speed and efficiency. Thus, the entire role and character of the railroad industry could shift from a relatively low-speed bulk transportation system to a predominantly high

speed network carrying high-valued freight, as well as increased numbers of intercity passengers.

These changes are not likely to be realized in the foreseeable future. By the time superconductor technology has replaced today's technology for the railroad industry or its shippers, many of the coal-fired plants now in operation will be retired or nearing the end of their expected service lives and the rail lines and fleet installed to handle the coal traffic may also be fully depreciated and ready for retirement or replacement. With the long lead time, railroads and shippers will have an opportunity to plan for change.

AMTRAK TILT-CAR TECHNOLGY TEST

Mr. COUGHLIN. The Continuing Resolution provided funds to test equipment capable of reducing the running times for inner city rail passenger service in the Northeast. Is FRA involved in high-speed rail? And if so, in what way?

Mr. RILEY. I have been promoting high-speed rail for the four years that I have been here because I think there is a real future in high-speed rail passenger transportation. I think it will become a form of transportation compelled by economics when superconductivity develops. Today, it is something that is possible.

In the interim, we are going to be assisting Amtrak in evaluating several options that may be able to reduce transit times particularly between New York and Boston without the huge capital investment involved in relocating the track. I have already done a trip up the corridor to begin to evaluate the turbo train and we are also going to be experimenting with tilt train technology. And we are doing the evaluations on these.

Mr. COUGHLIN. We will get into more detail in our Amtrak hearing.

Mr. RILEY. I cannot wait. It is always the high point of the year.

RADIO EQUIPMENT REGULATIONS

Mr. COUGHLIN. Last year, we discussed the fact that although the industry was making voluntary improvements, you still might move forward with regulations to require radio equipment in locomotives. Do you intend to proceed with rulemaking action in this area?

Mr. RILEY. Yes. We are going forward with that rulemaking. In fact, I think we probably could have brought that one to conclusion last year, which is what we hoped to do, except the enormous time requirements that spun out of the Chase accident, the hearings that went with it and then the 7 months of research on automatic train control just made it impossible to finish that rulemaking last year. But we do have a complete docket on it and we intend to continue.

Mr. COUGHLIN. When do you think it will be finished?
Mr. RILEY. We intend to finish it within this year.

HM-175 TANK CAR HEAD SHIELD RULE

Mr. COUGHLIN. Last year, you told us that you were considering the possibility of expanding your HM-175 tank car head shield rule to other types of tank cars such as those carrying chlorine. Do you plan to proceed with expanding the coverage of this rule to other commodities?

Mr. RILEY. Well, we have issued an NPRM, which is HM-181. What the 181 proposes is several things. It proposed new tank car standards for materials that are toxic by inhalation which are not covered in the current standards. It proposes head shields, thermal protection and larger safety valves for a variety of hazardous gases. It also contains a number of specific commodity rules. This is not one that is on a slow track. The docket closed on this one on February 26, and we are now evaluating the materials that were filed in the docket.

Beyond HM-181, we have been doing research at Pueblo on chlorine tank cars and on their puncture susceptibility. So we are going to continue to do that research into the next year. But HM-181 covers many of the issues we talked about last year and it is the sort of "Son of 175."

Mr. COUGHLIN. The NTSB suggested that you should both have the UN number and have it expressed in English as well.

Mr. RILEY. That was a recommendation that went to RSPA, not to us. I do not know what their attitude on it is but we would submit it for the record. I do not want to conjecture on that because I do not want to get out of sync with RSPĂ.

[The information follows:]

The following is RSPA's response to a similar question posed to them: We agree that shipping papers should be in English. Shipping descriptions are required to be in English under DOT's Hazardous Materials Regulations (49 CFR 172.201(a)(2)) and we have included a U.S. variation, in the International Civil Aviation Organization's Technical Instructions for the Safe Transport of Dangerous Goods by Air, that requires English-language documentation within the U.S.

RULEMAKING STATUS

Mr. COUGHLIN. Please provide for the record an update on what actions have been taken in the last year to move forward with each of the rulemaking priorities listed on page 566 of last year's hearing record.

[The information follows:]

Alcohol and Drug Use.-As a result of its February 1987 hearing, FRA has concluded that a number of technical amendments should be made to its rule. We intend to conduct a rulemaking during 1988 to accomplish that purpose. In addition, FRA will conduct a rulemaking to consider the addition of random testing to its rule in 1988.

Tank TOFC/COFC of Hazardous Materials.—FRA and RSPA have considered the record created under the Advance Notice of Proposed Rulemaking and intend to proceed to issuance of a Notice of Proposed Rulemaking during 1988.

Communications.-FRA held a public hearing in January of 1987 on communications issues in the railroad industry. Since that time, FRA has reviewed both the oral record from the hearing and all written documents submitted to the docket. We hope to complete the rulemaking this year (although it could be delayed if regulatory mandates in the safety bill reauthorization must be given priority).

Locomotive Cab Safety.-FRA has worked closely with manufacturers and representatives of the various rail constituencies to formulate a proposal for a model locomotive cab compartment. The Locomotive Cab Compartment Committee, an organization of interested parties formed to advance safety improvements in this area, will proceed with construction of a model cab based on a finalized version of these specifications. It is our intention to sponsor a formal safety inquiry on the progress and future directions of these efforts, with September as the tentative time-period. However, since considerable progress has been made on these issues, and the Committee's work can continue without the public hearing, this would be the first candidate for continuance into 1989 should regulatory mandates in the Safety Bill make it impossible to stage all of the regulatory hearings we are desirous of staging in the

current calendar year. We are hopeful, however, that the hearing can be completed this year.

Train Placement of Hazardous Materials.-FRA is working closely with the Research and Special Programs Administration (RSPA) to modify the current rules on the placement of hazardous materials cars within a train consist. Action in this area will be taken very soon. The major change planned will be to clarify the rules to include cabooseless trains. The current rule references placement relative to the caboose and is therefore unclear when the train does not have a caboose.

Railroad Dispatchers.-The FRA team's thorough review of every dispatching office in the nation is approximately 80% complete. A report of its fundings should be available this summer.

Automatic Train Control.-In November 1987, FRA issued a final rule requiring that all locomotives operating on the Northeast Corridor (NEC) be equipped with automatic train control devices. In a current proceeding, FRA is considering whether to extend this requirement to four branch lines off the NEC spine.

RULEMAKING PRIORITIES

Mr. COUGHLIN. Please provide for the record a listing of your five most important rulemaking priorities for fiscal years 1988 and 1989. Please also include the dates of future planned rulemaking decision milestones.

Maintenance of Way Vehicles in Revenue Service.

Rulemaking decision milestones have not yet been set, and cannot be established until we can determine the extent of the regulatory mandates that may be imposed on the agency by the Safety Act Reauthorization.

GRADE CROSSING SAFETY STATISTICS

Mr. COUGHLIN. Please update the table on grade crossing safety statistics found on page 566 of last year's hearing record. [The information follows:]

Mr. COUGHLIN. Please also update the information provided for the record on page 567 of last year's hearing record regarding Federal support for Operation Lifesaver.

[The information follows:]

In FY 1987, the FRA spent $4,440 for Operation Lifesaver coloring books which promote rail-highway crossing safety and trespasser prevention messages to grade school children. These eight page booklets are very popular and are distributed by FRA personnel when they make presentations in elementary schools and participate in manning booths at state and local fairgrounds in support of Operation Life

saver.

Field personnel continue to assist by participating in local speaker's bureaus and by setting up and staffing displays and arranging meetings between industry and local officials. FRA's safety field staff continues to make approximately 1,200 contacts and presentations for Operation Lifesaver annually and reaches directly over 100,000 individuals.

FRA participated in the planning and promotion of the 1987 National HighwayRailroad Grade Crossing Conference held September 14-17, in Denver, Colorado. This conference was more engineering-oriented than the previous year's Operation Lifesaver Symposium. FRA is currently involved in the planning for a 1988 Operation Lifesaver Symposium which will be held in Virginia Beach, Virginia, in August.

In FY 1987, the FRA made a $299,000 grant to Operation Lifesaver, Inc. (OLI, Inc.) which is being used to develop, produce and distribute much-needed Operation Lifesaver promotional and instructional materials. This grant was made from FRA's Research and Development funds.

Federal Highway Administration (FHWA) funding of up to $250,000 annually beginning in FY 1988 has been authorized under Section 130 of the Department of Transportation and Related Agencies Appropriations Act, 1988.

The Board of Directors of OLI, Inc., is comprised of members from the Association of American Railroads, Amtrak, the Railway Progress Institute, the National Association of Governors' Highway Safety Representatives and an independent member. This Board is intended to oversee and set policy for OLI, Inc. It is not feasible for them to provide day-to-day management.

Current private financial contributors include the Association of American Railroads, the Railway Progress Institute and the American Road and Transportation Builders Association. In-kind services and participatory contributions have come from McDonald's, Amoco, the American Automobile Association, the American Association of Retired Persons, the Brotherhood of Railway Signalmen and even the United States Postal Service. Expressions of interest being actively pursued at this time have come from the 4H Clubs of America and several from the insurance industry.

RAIL-HIGHWAY CROSSING SAFETY REPORT

Mr. COUGHLIN. Please also update the status report on implementing the Rail-Highway Crossing Safety Report recommendations found on page 567 of last year's hearing record. [The information follows:]

1 Thirteen seminars were held to promote the low cost corridor improvement project concept. Locations varied from Florida to Alaska. A report, titled: Railroad Crossing Corridor Improvements, was published by FHWA with FRA participation and input. This report, published in June 1986. includes a description of six specific projects as well as an outline of a "Model Program

» FRA continues to promote the severity prediction processes to state and railroad program managers 1986 and 1987 statistics both reflect an increase in severity (more fatal accidents) and this is helping to provide encouragement to at least consider these new procedures. Two new publications describing the Resource Allocation Procedures which include the accident and severity prediction formulas were available in 1987.