Chicago’s Risky Airport Rail Plan

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(Editor’s note: This idea has been mentioned to the Editor a couple of times. This article cautions those “experts” who are thinking about this innovation.)
Despite rail transit being a 19th century technology, many politicians view trains the same way that they view campaign contributors—you can never have enough of them. In order to provide a 20-minute travel time between downtown Chicago and O’Hare international airport, Mayor Rahm Emanuel issued a request for qualifications for companies to finance, build, and operate express service to O’Hare.
Two consortia, Boring Company and O’Hare Express LLC, that responded to the RFQ were short-listed to submit proposals. Applicants must be able to build the project without taxpayer subsidies. The project must have two stations, one downtown and one at O’Hare. Travel times must be 20 minutes or less with headways (time between trains) of 15 minutes or less. Premium fares must be less than current ridesharing and taxi fares of $30 to $40. Finally, companies must explain how their system would interact with existing transit systems and the environment.
Mayor Emmanuel is intrigued with Elon Musk’s Boring Company despite the fact that the team is the least experienced of the four teams that submitted their qualifications. Musk is proposing using high velocity electromagnetic pods or sleds that could travel at speeds of up to 125 miles per hour. The pods would travel in steel tubes 11 feet in diameter either on the surface or underground.
The prospect of reliable, high-speed train service is alluring. The lack of taxpayer subsidies for U.S. based rail transit would certainly be revolutionary. But there are several reasons to be cautious. First, while the Boring Company is working on pilot tunnels in Los Angeles and Maryland, Musk has yet to prove the technology viable. Many are skeptical that a 125 mph train would be feasible in an urban environment. Most engineers are skeptical that Musk’s approach can bore tunnels four times faster than today’s machines. The machine has to construct tunnel supports as it bores, haul soil to the surface, monitor for construction damage and keep track of all underground utility lines.
And Musk’s proposed electromagnetic pods will not be cheap. The line is likely to cost billions of dollars to build. As of late April Musk had raised $113 million for all of his proposed tunnel projects, but more than $100 million of that came from Musk himself. Obtaining land rights and environmental approval will be challenging. The tunnel or surface steel tubes would have to be constructed in an extraordinarily straight line for the train to operate at high speeds.
All these challenges suggest the high-speed tunnel boring technology might need several years of fine-tuning. Even assuming the technology works, the city of Toronto offers a cautionary tale. Toronto recently built an express train line between Pearson International Airport and Union Station downtown. In order for the line to be financially viable, fares were $19-$27.50 depending on payment mechanism. However, the high fares caused ridership to be more than 100,000 passengers less than projections. As a result, the regional transportation authority, Metrolinx, had to take it over and subsidize the service. This cost taxpayers C$30 million last year alone.
Since assuming control over operations, Metrolinx has made a number of changes. First, the agency lowered the one-way fare, originally ranging from $19.00 to $27.50, to a reduced fare of $9.25 to $12.35, an average reduction of $12.00 per ride. Second, it opened additional stations along the Union-Pearson route transitioning it from an express line to a more traditional heavy rail train service. Yet despite an increase in passengers, Metrolinx will have to subsidize each rider forever, at a staggering cost of $11 per rider.
The actual Toronto train service is totally different from what was sold to taxpayers. Instead of providing a new service at no cost to taxpayers, the train is a drain on the public budget. Instead of providing high-speed rail service to the airport, the train is providing low-speed transit service to neighborhoods. Providing neighborhood service is not a bad thing, but it was not the intention of this project.
Chicago boosters claim that their city is very different from Toronto. For one thing, Chicago has a bigger airport. O’Hare certainly is bigger but only half its passengers’ origin or destination is Chicago. The other half are transferring to a different plane at the airport. A person traveling from Omaha to Nashville via Chicago is not going to ride a train to downtown. Chicago leaders argue that their business district is bigger. Chicago’s business district is larger but most new employment in the region is in the suburbs. Further, Chicago does not have the high residential density and land use policies that make Toronto more conducive to transit service. The biggest challenge may be the routing of the train line through a very built-out environment.
A Chicago airport express train might be viable. It can be dangerous to underestimate Elon Musk. However, city officials must ensure that the airport line pencils out. The city does not need another heavy rail line connecting downtown with the airport; it already has the Blue Line. Depending on the cost and public funding needed for the express train, it might be a better use of resources to improve the existing Blue Line.
(This article first ran in the June 2018 issue of Surface Transportation Innovations.)
Baruch Feigenbaum
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What the 2018 Tax Cuts Mean for Virginia

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How will the tax cuts from the 2018 Tax Cuts and Jobs Act impact Virginia households? The results vary considerably by income bracket, according to a tax calculator published by the Tax Foundation. Higher income households, making over $200,000 per year, will get the biggest income tax breaks as measured in absolute dollars and by percentage of income.
But, despite the hand-wringing over the elimination of the tax deduction for state and local taxes, there is only modest variance among high-income households between high-tax Northern Virginia and other parts of the state.
To illustrate the impact by income category, I selected Congressional District 7, which stands at the geographic center of the state and encompasses a range of higher-income suburban households and lower-income rural households. As seen in the table above, there is very little in the tax package for people making less than $25,000 per year. Of course, given the highly progressive structure of the tax code, people making less than $25,000 per year pay almost no taxes to begin with.
The tax act is fairly generous to working-class and middle-income Virginians but most generous to those making over $200,000 per year. If your No. 1 concern is sticking it to the rich, this bill doesn’t do it. In fact, the Tax Foundation data makes the tax act look like a giveaway to the rich — more or less as its Democratic Party critics described it.
Unfortunately, this static analysis obscures as much as it reveals. By eliminating many deductions employed by the wealthy, tax reform should flush considerable income out of tax shelters into the taxable open. One can predict several things: (1) that taxable income will rise, which (2) will induce hysteria among the social justice warriors obsessed about income inequality without appreciating the difference between gross income and net (taxable) income, and (3) will result in higher tax payments than would be predicted by static analysis. If your No. 1 concern is ensuring that the rich shoulder an increasing share of the income tax burden, then such an outcome is entirely possible under the tax plan — although we won’t know for sure until the data comes in.
Another thing that static analysis overlooks is the impact of the tax cuts on the economy. At a minimum, lower taxes will create more disposable income, some proportion of which will be plowed back into the economy in the form of increased consumer spending. If the money isn’t spent, it will be used either to pay down debt (a good thing) or invested (also a good thing). It seems pretty clear that Democrats’ fears of an economy cataclysm resulting from the tax cuts are not being borne out. In the short run, the cuts clearly are boosting the economy. They’re also boosting deficits, however, which does aggravate the long-term problem of endemic deficit spending and make a Boomergeddon scenario all the more likely.
There is some geographic variability in tax cuts for top-earning households ($200,000 and up), as can be seen in the chart to the left, but it is modest. Fears fanned by critics that high-income earners in high-tax districts might be losers do not appear to be panning out in Virginia. Northern Virginia districts 8, 10, and 11 don’t get tax breaks as big as their high-income earners in other districts, but they do get tax breaks. Big ones. If anyone has a problem, it’s Maryland’s 4th and 5th districts east of the District of Columbia. There, top income earners get tax breaks averaging only $9,000 per household. Is that a big enough difference to induce some to move across the Potomac? We’ll see.

(This article first ran in the June 13, 2018 issue of Bacon’s Rebellion.)
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Keep it in the ground … by blocking pipelines

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You can understand their frustration, as the steady stream of radical environmentalist successes during the Obama years has been replaced with endless setbacks. Oil, gas and coal leasing, permits and production have risen significantly. Big Green just lost its first Big Cities v. Big Oil climate change shakedown lawsuit. President Trump pulled the USA out of the economy-wrecking, all-pain-no-gain Paris Climate Treaty and will soon nominate another Supreme Court justice.
The fracking revolution (horizontal drilling and hydraulic fracturing) not only slipped in under their radar. The technology they absolutely detest has utterly demolished their mantra that the world is rapidly – and now is helping create millions of jobs, generate billions in government revenues, launch a petrochemical resurgence, and turn the United States into an oil and gas exporter!
Anticipated and activated regulatory and tax reforms and rollbacks, combined with far lower energy prices, have brought record stock market gains, record lows for black and Hispanic unemployment, far fewer people on welfare, thousands of extra dollars in family bank accounts, and renewed consumer confidence. Q2 2018 economic growth could reach 4.5% (which pessimists had said was impossible).
Just as awful, extreme greens despise oil and natural gas, but are “forced” to use these resources every day for transportation, electricity, heating, air conditioning, cosmetics, pharmaceuticals, clothing, plastics in cell phones and solar panels, and countless other blessings that they never acknowledge.
In other examples, the Cardiac 3-D Print Lab at Phoenix Children’s Hospital makes precisely crafted replica hearts, blood vessels, ears, bones and other organs out of colored plastics to prepare for surgeries and save kids’ lives; and natural gas is slowly replacing high-sulfur bunker fuel in ocean transport.
But anti-fossil-fuel fanatics are clever, resilient and well-funded by liberal foundations and Russians. (See here, here, here, and here.) If they can’t block leasing, drilling and fracking directly, they find ways to “keep oil and gas in the ground” indirectly – by claiming methane from gas production could cause climate cataclysms, filing lawsuits, and taking “direct action” to delay or block pipeline construction.
A recent EDF report claims industry leaks 60% more methane than previously recognized. Industry says the claim is wrong, methane leakage is minimal and going down every year as technologies and practices improve – and natural gas production and transportation make a trifling contribution to a trivial amount of atmospheric methane. In fact, methane is just 0.00017% of the atmosphere (1/235th the amount of CO2), and neither gas has replaced the sun and other powerful natural forces that actually control the climate.
Moreover, nearly one-third of all global methane comes from natural sources, and in the USA 60% of human methane comes from livestock and agriculture, municipal landfills and sewage treatment plants.
New pipelines are needed to move record amounts of US oil and gas to refineries, petrochemical plants, export terminals – and gas-fired generators that replace coal-fired units, provide emergency electricity for hospitals, or back up sporadic wind and solar power. Many lines serve new oil and gas fields; others will replace aging, deteriorating pipelines that pose increasing risks of leaks and spills, or replace railroad tanker cars that present much higher environmental and human safety risks than pipelines.
Enormous Permian Basin shale formations beneath Eastern New Mexico and West Texas feed an oil producing region that is already North America’s biggest, and in a few more years could be producing more oil than every other nation in the world except Russia and Saudi Arabia. The oil reduces Russian, Iranian and OPEC ability to employ their oil as political weapons, and keeps oil and gasoline prices low.
Oil and gas production in the Permian, Bakken, Haynesworth, Marcellus, Utica and other shale plays creates thousands of construction, manufacturing and STEM jobs, plus vital city, state and federal revenues.
And yet plans to build or complete pipelines are often met with anger, resistance, litigation and violence. The nearly completed Dakota Access Pipeline spawned illegal protest camps that left behind tons of trash and excrement, and housed hardcore radicals who destroyed construction equipment, shot at guards, tried to destroy a bridge, killed cattle and bison, and threatened to murder local residents.
The $3.5 billion Mountain Valley Gas Pipeline has brought seemingly endless litigation – and protesters who occupy trees, chain themselves to construction equipment and bizarrely claim they are acting in the finest traditions of the civil rights movement. A 16-mile-long, 100-foot-wide segment of the Atlantic Coast Gas Pipeline right-of-way would affect a mere 195 acres out of 1.1 million acres in Virginia’s George Washington National Forest; but agitators say it would create a vast “industrial zone” and “severely degrade some of the best remaining natural landscapes” in the entire Eastern United States.
More rabid activists have closed pipeline valves, creating risks of ruptures, explosions, fires and deaths.
Compared to these actions, litigation seems mild, and most projects are eventually approved by FERC, the Army Corps of Engineers and the courts. However, prolonged delays, multiple environmental studies and forced route changes amid construction add tens or even hundreds of millions to costs, for few benefits. Many legal battles dragged on for years: Keystone XL in Nebraska (oil), Sandpiper in Minnesota (oil), Mariner East 2 in Pennsylvania (gas), Bayou Bridge in Louisiana (oil), for example.
The double standards are glaring and unacceptable. Compare fossil fuel hysteria to the minimal environmental studies and environmentalist concerns typically associated with wind or solar installations, despite the enormous habitat and wildlife losses that those “renewable” technologies unavoidably cause.
Ironically, the anti-petroleum, anti-pipeline campaigns have been significantly aided by an unlikely and unexpected source: a “people’s politician” whose job and economic growth promises, policies and expectations are intrinsically linked to fossil fuels. It is becoming increasingly clear that President Trump’s tariffs on imported steel and aluminum are adding significantly to pipeline and oil patch woes.
Even Energy Secretary Rick Perry has voiced concern that “a bullet” intended for the trade and tariff parity target might hit the oil production and transportation sector behind the target. Domestic metals producers benefit from the tariffs, but domestic users of steel and aluminum are getting hammered.
In fact, the tariffs and environmentalist actions are having a profoundly negative impact on pipeline projects and oil and gas production in many regions. In the Permian Basin, for example, oilfield service workers are being idled, and the number of drilled-but-uncompleted wells soared to 3,200 in May, a 90% increase from a year ago, as the lack of pipeline capacity forced fracking companies to reduce production.
Permian operators will likely have to close older wells within four months because there aren’t enough pipelines to get the oil to customers, one industry CEO has said. The worsening bottleneck there could benefit Russia, Iran and OPEC, as they step in to fill global oil demand. Greenies must be chortling.
But maybe not all that much. The US fossil fuels boom may be slowing, but only temporarily and only a little. China, India, Africa, South America and Europe are all burning far more oil, gas and coal. China and Eastern Europe are anxious to buy more US liquefied natural gas (LNG) to reduce coal use, and in the former Soviet Bloc to avoid being too reliant on Putin gas that could be used in strategic extortion.
Meanwhile, China has launched its first fracking operations, in a mountainous area south of Chongqing in southwestern China. It wants to help meet natural gas demands that are expected to increase more than 700% over the next two decades. Britain too is gearing up for major fracking-based gas production.
So all these rabidly anti-fossil-fuel actions in Oakland and New York and across the USA will have no effect on global emissions or even theoretically on Earth’s climate. It’s all a petulant part of the radical Left’s determination to employ lawsuits, Saul Alinsky tactics and violence to seize control of our economy, livelihoods, living standards and lives – regardless of the human or environmental costs.
Responsible people across the globe need to push back – or help the anti-fossil-fuel folks live according to their ideology, by cutting off their access to anything derived from the fuels they despise.
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A Common Definition for BRT, Please

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Bus Rapid Transit (BRT) is the fastest-growing U.S. transit mode. The Trump Administration has prioritized funding BRT projects over light-rail projects. A region can build three to nine BRT projects for every one light rail line. However, while BRT may be enjoying greater popularity, there is still considerable debate about the definition of BRT. And that debate may be affecting real-world projects.
BRT lines that run in a dedicated right-of-way 100 percent of the time are known as BRT heavy. BRT lines that share a lane with mixed traffic at least some of the time are known as BRT lite. BRT lines that run on Interstates or other limited-access highways for at least 50 percent of their routes are an emerging category called freeway BRT. All BRT lines have some or all of the following:

  • Running ways that give buses priority
  • Unique station design
  • Larger vehicles (often articulated buses)
  • Electronic/SMART card off-board fare collection
  • ITS features such as traffic signal priority
  • More-frequent services
  • Transit-supportive land use.

Many elected officials have been hesitant to jump on the BRT bandwagon. Like most Americans, they view light rail as a sexier option, even if it is an old 19th century technology. One reason that political leaders prefer rail is its perceived permanence. Once a light rail line is constructed, it does not get removed. BRT lines are designed to be permanent as well, but they could move to a different alignment as development patterns change. American development patterns have changed significantly over the last 50 years. Think of the advantage of moving a line to a densifying part of the city or connecting two suburban locations poorly served by transit. Practically, few lines are likely to be moved, but the ability to move a line is an advantage.
BRT practitioners are also worried about traditional bus service labeling itself as BRT and watering down the concept. BRT planners have worked to differentiate BRT from slow bus service that Americans often avoid. They worry that poor BRT service will cause riders to clamor for expensive, unneeded light-rail lines. The following table shows the difference between BRT and other bus services.

Type of
Service
Stop Distance Speed Land Use/TOD/
Value Capture
Premium
Service
Local Every 2 blocks Very Slow No No
Limited-
Stop
Every ½ mile Slow No No
Express Frequent at origin & destination;
none in between
Fast No Sometimes
BRT Every ½-1 mile Moderate Yes Always

To convince politicians and the public that BRT is a quality service, different definitions for BRT have been developed. In theory, BRT lite follows the Federal Transit Administration (FTA) definition of BRT in which over 50 percent of the route operates in a right-of-way dedicated to transit during peak periods. The service must also have some combination of defined stations, traffic signal priority, and 15-30 minute headways for 14 weekday hours and 10 weekend hours. This service is labeled Fixed-Guideway BRT. However, in reality, the FTA also awards funding for Corridor-Based BRT systems that do not operate in their own lane or have their own guideway. All that is required to receive federal funding for BRT lite is short headways (time between buses), defined stations and traffic signal priority. Therefore, most practitioners don’t see dedicated lanes as a requirement.
The Institute for Transportation and Development Policy (ITDP) has developed standards closer to BRT heavy. ITDP’s BRT Standard scores lines based on BRT service quality and awards gold, silver, bronze or basic rankings. Systems that do not meet ITDP’s standards are rated as “not BRT”. The organization awards points in six categories (The BRT Basics, Service Planning, Infrastructure, Stations, Communications, and Access and Integration). It also deducts points for violations such as overcrowding and long headways. Systems can receive up to 100 points. Those scoring 85 or higher are gold; those at 70 or higher are silver; those at 55 or higher are bronze, while those at 30 or higher are basic.
However, to be considered BRT by ITDP, systems must be in dedicated lanes and have a specific alignment. And since this country builds mostly BRT lite, many U.S. systems don’t qualify, and many U.S. practitioners consider the guidelines too onerous, particularly in small and medium-sized communities. Many of the BRT gold, silver and bronze BRT systems are in developing countries ruled by authoritarian governments. If China or Indonesia decide that they want to convert a traffic lane to BRT, they don’t have to worry about an environmental review or public comment. We don’t have that style of government.
A recent development in the Tampa area shows that this difference is more than an academic exercise. Several outside transit experts met with Tampa’s political leadership and suggested that the region’s new transit plan was not real BRT. The region has plans for an extensive bus-based network that uses both BRT lite and freeway BRT. Unlike past Tampa rail plans, the bus plan had political and popular support. But when news broke of transit experts claiming that the plan was not real BRT, because it was not BRT heavy, the plan took a major hit. Some leaders who wanted light rail argued BRT was no substitute for rail despite the lack of popular support or funding for rail lines. Others who never wanted transit in the first place argued the region was wasting its money on ordinary bus service that moves poor people around. It would be ironic if the transit referendum fails, because some BRT folks are denigrating a BRT-based solution because it does not meet their standards.
We need to have a common-sense definition of BRT. We should not allow local bus services without ITS features and some type of running way priority to be called BRT. But it is just as crucial that we don’t mandate an unrealistic definition of BRT that imposes high costs on other roadway users.
(This column first ran in the July 2018 issue of Surface Transportation Innovations.)
Baruch Feigenbaum
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Judge dismisses climate change lawsuit

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Attorney General Curtis Hill of Indiana and 14 other states helped dismiss a climate change lawsuit brought by the cities of Oakland and San Francisco, Calif. On June 26 a federal judge dismissed a global warming lawsuit which asserted climate change was caused by numerous oil companies and declared the cities failed to state a legal claim.

Hill and other Attorneys General argued that the cities were attempting to have the courts determine how to control the emissions of carbon dioxide from fossil fuels.

Hill argued, “Imposing such financial consequences on business activity contravenes Congress’ exclusive power to regulate interstate and foreign commerce. Plaintiffs’ objections to fossil fuel use are based in public policy, not law, and are thus not appropriate for judicial resolution. [Cities are suing companies for] nothing more specific than promoting the use of fossil fuels.”

Dr. Tim Huelskamp, president of The Heartland Institute, has indicated he is deeply concerned about cities being able to sue oil companies for nothing more than promoting their product. “These lawsuits by the Left are nothing more than bald faced attempts to shake down legitimate American businesses,” says Huelskamp.

The court’s opinion is interesting in that it reviews the history of carbon dioxide. The court states that in 1896 an Irish scientist determined that carbon dioxide absorbed heat. In 1938 another scientist demonstrated there was a slight rise in temperature on the planet from 1910-1930. It was not until 1988 that a United Nations Intergovernmental panel started an assessment and issued a report in 1990 which suggested that man-made emissions were creating some interference with the climate.

The court is convinced that human influence has been the dominant cause of observed warming in the 20th century. The court points out the sea level has risen approximately 7-8 inches since 1900. The court did not point out other science which shows little or no sea level change in certain parts of the world and that, in some places, the land is actually rising.

Defendants in this case, Chevron, Exxon, BP, Shell, and ConocoPhillips, are the largest investor-owned producers of fossil fuels in the world. Oakland and San Francisco claim these companies were responsible for creating a public nuisance because both cities will be subject to sea level rise and as a result will have to erect sea walls to keep from being submerged by these waters.

The judge points out “The scope of plaintiffs’ theory is breathtaking.” The judge went on to say, “To be held liable for a public nuisance, a defendant’s interference with a public right can either be intentional, or unintentional and otherwise actionable under principles controlling liability for negligence, reckless, or abnormally dangerous activities.”

The court said fossil fuels have continued to cause global warming. There is significant disagreement with this statement; however, the court stated against this negative we must weigh a positive. It stated “[o]ur industrial revolution and the development of our modern world has literally been fueled by oil and coal. Without those fuels, virtually all of our monumental progress would have been impossible.”

The court is deeply troubled by the cities asking for billions of dollars to abate their own localized effects. The opinion makes it clear that oil company conduct is lawful in every nation, yet the cities of Oakland and San Francisco would have a single jury impose a decision that neither Congress or a President has ever sought.

The court wisely concludes that the question presented by Oakland and San Francisco is best left to Congress. The court finally states “…regulation of the worldwide problem should be determined by our political branches, not by our judiciary.”

The Attorney General of Texas put it best in saying the lawsuit against oil companies “…was nothing more than mayors grandstanding for their political base while attempting to set national policy.”

(This column first ran in Farm Futures on July 19, 2018)
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