Chase for Federal High-Speed Rail Funding Runs on Fast Track

States race to meet August 24 deadline for first round of funding

The federal government revealed funding options and requirements to the states in June. Applications for the first round of funding are due August 24. Several fast-rail projects were already in some stage of planning when the feds unveiled their guidelines. Now planners are revving up to finish by the funding deadline. Sarah Klose reports on the funding meeting and the plans in the works for high-speed rail in the Midwest.

By Sarah Klose

States are now in the midst of a fast-track chase for $8 billion of federal stimulus funds targeted for high-speed rail projects.

The Federal Railroad Administration (FRA) released its guidelines on June 17, and states could have begun submitting “pre-applications” for high-speed intercity rail grants as early as July 10.

Detailed applications are due by August 24 for grants for projects in “Tracks” 1, 3 and 4, and by October 2 for “Track” 2 projects.

High-speed rail is already working on the East Coast, where the Acela Express runs at up to 150 mph between Boston, New York, Philadelphia, and Washington, DC. (Photo courtesy of Bombardier)

Projects Classified Into “Tracks” Track 1 covers “ready to go” intercity passenger rail projects that have completed engineering and environmental studies. Track 2 is regional or interrelated projects for high-speed rail corridor and intercity passenger rail services. Track 3 is planning activities for future high-speed and intercity rail projects. Track 4 is intercity rail projects that are in a state’s transportation improvement plan.

“High-speed” trains operate at 110-150 mph over 100-600 miles of track; “intercity” trains operate at 79-110 mph over 100+ miles of track.

The $8 billion in American Recovery and Reinvestment Act (ARRA) funds is available for Tracks 1 and 2. But only $90 million of federal DOT funds is available for Tracks 3 and 4. Grants will be awarded for Track 1 final design and construction. Track 2 projects will receive payments as they reach progress milestones. States are responsible for cost overruns.

Track 1 and 3 projects must be completed within two years of funds obligation, Track 4 projects within five years, and Track 2 projects by September 30, 2009. Up to 100% federal funding applies for Tracks 1 and 2, with a 50% non-federal match required for Tracks 3 and 4.

Peter Gertler is vice president of high-speed rail for HNTB and program chair of the American Public Transportation Association’s high-speed and intercity rail committee.

Projects will be evaluated on three main criteria: public return on investment, project success factors, and other attributes. Region, innovation, environmental impact, selection of proposed operator, and rail safety may also be considered.

Grants will be awarded by late September 2009, and work must start by September 2012.

States that are selected to receive grants must establish written agreements with applicable railroads on right-of-way use and ownership. Currently, grant recipients will be required to buy American steel, iron, and manufactured goods, although FRA may waive this requirement.

Any company may seek a slice of the design work. Last year, HNTB partnered with Spain’s Prointec. “In Florida, we were involved early on as the general engineering contractor,” says Peter Gertler, vice president of high-speed rail for HNTB, and program chair, high-speed and intercity rail committee for the American Public Transportation Association (APTA). “In the Midwest we have been involved with the Midwest Rail Initiative since its inception.”

Midwest Plans The Midwest Regional Rail Initiative (MWRRI), a coalition formed by Illinois, Indiana, Wisconsin, Missouri, Michigan, Ohio, Iowa, Minnesota and Nebraska, “is planning a 3000-mile Chicago-hubbed intercity rail system with speeds to 110 mph,” says Randy Wade, passenger rail manager, Wisconsin DOT, Madison, Wis. It plans to install new capital equipment and implement safety standards under positive train control.

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The MWRRI should cost $9.6 billion, add 6,000 construction jobs and generate $5.3 billion of earnings over ten years of construction.

A targeted build-out cost of $3.4 billion and a completion date of 2013 apply to “three corridors that are very robust - Chicago-St. Louis, Chicago-Detroit, and Chicago-Madison,” says Gertler. “They are very competitive and positioned well for receiving some grant money.”

Under the MWRRI plan, express trains on a proposed 434-mile Chicago-Milwaukee-Madison-Minneapolis route will reach speeds of 79-110 mph. The Chicago-Milwaukee line, which has grown by 26%, to 750,000 annual passengers, will increase from seven to ten round daily trips, with the Madison leg starting at six round trips and growing to ten.

The map shows the extensive, Chicago-hubbed, web of railways that exist or are planned in the Midwest.

Chicago’s candidacy to host the 2016 Olympics may help the Midwest’s application. “I imagine that will be a factor when we examine the proposals and contingency factors,” says Karen J. Rae, Deputy Administrator of the FRA.

Over the next five years, Illinois will itself spend $250 million on improved tracks, better signals, new locomotives, and high-speed trainsets.

Federal Leaders Propose More Money To continue the bullet-speed growth, President Obama is requesting $1 billion per year for high-speed rail through 2014. Congressman James Oberstar of Minnesota hopes to bump it to $50 billion over six years in his new $450-billion transportation bill.

The states and federal government can look at Europe to see high-speed-rail success. “Our Madrid-Seville line is 99% on time, and over 80% of travelers choose this high-speed train over air or automobile travel,” says Eduardo Romo, vice president of technological development at Prointec.

A 2009 survey by HNTB shows 54% of Americans would choose modern high-speed trains over car (33%) and air (13%) if prices and travel times were the same. They may soon get the chance.