Updated at 9:56 a.m. on Nov. 10.

Association of American Railroads
The Association of American Railroads represents all of the major freight railroads, which represents 75 percent of U.S. freight rail mileage, more than 90 percent of freight rail employees, and 95 percent of freight rail revenue. Amtrak and several commuter passenger railroads are also members of the AAR. It has 77 affiliate and associate members who represent railroad-related businesses, such as manufacturers and suppliers.

What They Want
Nearly a quarter of AAR's revenues comes from transporting coal across the country. That, President and CEO Edward Hamberger says, is what drives their position on climate change legislation. "Not only does 25 percent of our revenue come from coal, but one in every five jobs in the industry is related to coal," Hamberger said. "It's a very important piece for us." How much greenhouse gas emissions allowances coal producers get under a cap-and-trade system is crucial. "Our number one priority is to have the utilities get the allowances so they can continue to burn coal economically," he said. AAR also wants to make sure funding for carbon capture and sequester (CCS) is included in climate change legislation to ensure its coal-producing customers remain that way in the long-term.

The group also just recently started working with Senate staffers on getting what Hamberger calls "contingent allowances" into a climate change bill. These are allowances for the railroad industry that would begin in 2018 if the legislation adversely affects business, Hamberger explained. "We're not in a food fight here with other industries," Hamberger emphasized. "We're not going after anybody else's allowances."

Deal Breakers
AAR has not officially endorsed or opposed either Waxman-Markey or Kerry-Boxer, and it's not planning to. That said, the group would prefer to see lower greenhouse gas emissions reduction targets than those in Kerry-Boxer -- a 20 percent reduction from 2005 levels by 2020. "That seems a little high," Hamberger said. He said the House bill's 17 percent is better, but that President Obama's initial number of 14 percent was even better. He didn't comment about a specific percentage AAR would prefer, but lower is always better, he said.

How Much They've Spent
So far this year, AAR has spent nearly $7 million on its lobbying efforts, according to its latest disclosure forms. Its total revenue in 2007 was just over $60 million, according to IRS forms. Hamberger said energy and environmental issues are second only to regulatory issues when it comes to the work AAR does with lawmakers. FEC filings show that the group's political action arm contributed about $120,000 to candidates and committees for the 2009-2010 election cycle, including the PACs of Environment and Public Works Chairwoman Barbara Boxer, D-Calif., and Sen. Kay Bailey Hutchison, R-Texas. Of that $120,000, roughly 70 percent went to Democrats, according to the Center for Responsive Politics.

AAR has been running an inside-the-beltway multimedia campaign for two years that touts the efficiency of freight trains compared to other forms of ground transportation, especially automobiles. The ads, which run online, in print and on the radio, say that a freight train can move a ton of freight 436 miles on one gallon of fuel. A spokeswoman would not estimate how much the group is spending on the campaign.

Key Players
Hamberger plays a key role in negotiating with lawmakers on all the issues important to AAR. He serves on the Blue Ribbon Panel of Transportation Experts, convened by the Transportation Department. Hamberger was a managing partner of a D.C. law firm before coming to AAR in 1998. John Wetzel, AAR's vice president for government affairs, has been leading AAR's energy advocacy on the Hill for the past 26 years, and he has also lobbied on behalf of the motor vehicle industry. Both Hamberger and Wetzel are registered lobbyists, according to the Center for Responsive Politics. AAR employs four additional lobbyists as well. Hamberger said his organization is working with Sens. Max Baucus, D-Mont., and Jay Rockefeller, D-W.Va., to ensure the railroad industry is covered in legislation.

Links
Summary of AAR's position on climate change and reducing carbon emissions.
FreightRailWorks campaign

CLARIFICATION: Wetzel has focused on energy issues, not AAR's general lobbying.

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