1

FY 2014 Budget &Five-Year Reauthorization Proposal

FEDERAL RAILROAD ADMINISTRATION

AASHTO Communicators’ Call May, 2013

2

Contents

TrendsInvestment Summary

Budget Context Key Themes

Proposal DetailsCalendar of Press Opportunities

3

Climate Change+17% GHG emissions (1990-2007)(Source: U.S. Environmental Protection Agency)

High Costs$1 trillion per year(Source: Bureau of Transportation Statistics)

Population Growth+118 million people (2010-2050)(Source: U.S. Census Bureau)

Oil Dependency14m barrels/day fortransportation.(Source: U.S. Energy Information Administration)

Congestion$125 billion/year(Sources: Texas Transportation Institute; Air TransportAssociation)

Five transportation challenges requiring

new, bold and innovative solutions

Trends Affecting Transportation

4

23% Driving

40% Transit

Trends: Young Americans’ Changing Transportation Habits

5

Source: Amtrak

Trends: Rail Gaining Market Share

6

We are making $18 billion in rail investments

HSIPR (High Speed Intercity Passenger Rail Program) $10.1 Billion

TIGER (Transportation Investment Generating Economic Recovery Program) $328 Million

Amtrak (Annual Grants, Sandy, FEMA, Other) $6.2 Billion

Capital Assistance to the States $14 Million

Rail Line Relocation and Improvement Grants $90 Million

Railroad Safety Technology Grants $49 Million

CMAQ $16 Million

Legacy Moynihan Station $129 Million

Next Generation High Speed Rail $9.7 Million

R& D Rail Planning $2.9 Million

Rail Development $187 Million

Note: All numbers are rounded.

Investment Summary by Category

7

Investment Summary By Region: $18 Billion Invested Since 2009

7

Pacific Northwest Population: 8.4MWorld’s 30th largest economy

California Population: 38M

World’s 9th largest economy

Northeast Population: 52MWorld’s 5th largest economy

Southeast Population: 18MWorld’s 20th largest economy

Midwest Population: 56M

World’s 7th largest economy

8

6,000

40260105

3

75

30

corridor miles

stations

passenger carslocomotivestrainsets

engineering/environmental studies

state rail & service development plans

Investment Summary by Category

9

Station Development

10

Budget Context: Timeline

today

FY12

MAP-21 signed into law; no rail title

MAP-21 expires

FY15FY14FY13

The FY 2014 budget signals proposed direction for reauthorization

PRIIA/RSIA (current rail

authorizations) expire

11

Budget Context

A changed rail landscape since the Passenger Rail Investment and Improvement Act of 2008…

— Accidents and incidents at record lows

— Train ridership and reliability at record highs

— Historic levels of public and private investment

— Strong financial performance of freight rail & Amtrak

…but after decades of underinvestment, much work remains to be done.

12

Key themes for FY 2014 budget and five-year plan

Enhancing World-Class SafetyFRA’s budget continues to enhance rail safety, already among the safest modes of transportation, building on last year’s record.

Modernizing our Rail InfrastructureFRA’s budget invests in modernizing the infrastructure built by past generations of Americans, lowering long-term costs and ensuring a safer, more reliable and efficient rail system.

Meeting the Growing Market DemandFRA’s budget makes targeted investments to ensure America’s rail system is prepared to meet the growing demand for movement of people and goods.

Promoting InnovationFRA’s budget invests in research, development and workforce training to ensure America’s global lead in safety, productivity and technological innovation.

Ensuring Transparency & AccountabilityFRA’s budget provides program transparency to ensure delivery of public benefits and accountability of public resources.

13

FY 2014 and five-year plan

FY 14 ($M)FIVE-YEAR (FY14-18, $M)

FRA SAFETY & OPERATIONS 185 n/a

RESEARCH & DEVELOPMENT 35 183

CURRENT PASSENGER RAIL SERVICE* 2,700 13,200 Northeast Corridor 675 4,225 State Corridors 300 800 Long-Distance Routes 800 3,675 National Assets 925 4,500

 

RAIL SERVICE IMPROVEMENT PROGRAM**

3,660 26,400

Passenger Corridors 3,250 23,180 Congestion Mitigation 150 1,300 Freight Capacity 190 1,570 Planning 70 350

 

RESEARCH, DEVELOPMENT, & TECHNOLOGY**

55 217

High-Performance Rail R&D 25 67 National Cooperative Rail Research Program 5 25 Workforce Development 25 125

 

TOTAL 6,635

40,000 (excl. S&O)

Current services (incl. Amtrak) organized by

“business lines”

Integrated passenger + freight

improvement programs

New focus on workforce, innovation

Transportation Trust Fund

(new Rail Account)

General Fund

Five coordinated accounts, two funding sources

Traditional FRA accounts

* Incl. 0.5% oversight takedown** Incl. 1% oversight takedown

14

Current Passenger Rail Service (FY14 Request = $2.7 billion)

Program Area Eligible ActivitiesEligible

Recipients

Northeast Corridor

$675 million

• Capital – backlog and ongoing state-of-good repair• Capital – equipment replacement• Operating surplus reinvested into NEC infrastructure

Amtrak (others as

designated in capital plan)

State Corridors (transitional)

$300 million

• Capital and operating – transitional assistance to phase-in PRIIA 209

• Capital – equipment replacement

States

Long-Distance Routes

$800 million

• Capital and operating to support long-distance route service

Amtrak

National Assets

$925 million

• Capital and operating – National “backbone” assets• Capital – Positive train control• Capital – ADA at stations• Debt service

Amtrak

15

FY 2014 FY 2018$0

$400

$800

$1,200

$1,600

$2,000

$2,400

$2,800

$3,200

National Assets

Long-Distance Routes

State Corridors

Northeast Corridor

$M

Current Passenger Rail Service (FY14 Request = $2.7 billion)

Key Outcomes:

• Amtrak fully-funded, with additional capital to address historic underinvestment

• Over five-year plan, full funding for ADA and replacement of all legacy corridor equipment.

• Efficient phase-in of State control over State corridors

Funding needs decline over five years as major “one-time” activities are completed

16

Rail Service Improvement Program (FY14 Request = $3.66 billion)

Program Area Eligible Activities Eligible Recipients

Passenger Corridors

$3,250 million

• Infrastructure, stations, equipment for service upgrades on existing corridors and for building new corridors

• Support for implementing PTC on commuter railroads

States and multi-State entities Amtrak Equipment entity Commuter railroads (PTC only)

Congestion Mitigation

$150 million

• Address major intercity/freight/commuter rail bottlenecks

• Upgrade shared-use infrastructure in terminal areas

States and multi-State entities Amtrak Freight railroads Rail terminal companies

Freight Capacity

$190 million

• Intermodal corridors and connection point capacity

• Short-line capital upgrades• Community impact mitigation – safety

enhancements & rail line relocation

States and multi-State entities Freight railroads Rail terminal companies Ports Local governments

Planning

$70 million

• National, multi-state, and state rail planning

• Corridor and terminal area planning• Northeast Corridor FUTURE

States and multi-State entities Metropolitan planning organizations FRA

17

Rail Service Improvement Program (FY14 Request = $3.66 billion)

Key Outcomes:

• Market-based improvements to capacity, speed, and reliability of passenger & freight systems

• Continuous safety improvements

• Coordinated planning program to set stage for future phases of investment

• Support for implementing PTC on commuter railroads

18

Research, Development, &Technology (FY14 Request = $55 million)

Program Area Eligible Activities Eligible Recipients

High-Performance Rail R&D

$25 million

• Upgrade the Transportation Technology Center (TTCI) in Pueblo to test high-speed rail equipment, supplies, technology

FRA

National Cooperative Rail Research Program

$5 million

• Cooperative research projects to advance rail policy

Transportation Research Board

Workforce Development

$25 million

• Buy America support (Manufacturing Extension Partnership)

• Rail University Transportation Centers (UTCs)

• Training and technical assistance in conjunction with key partners

• States and multi-State entities

• UTCs• Manufacturing

Extension Partnership• FRA

19

Immediate Transportation Investments

$50 billion to jump-start infrastructure improvements, create jobs – $5 billion for rail

• $40 billion for “fix-it-first” investments that improve our existing transportation system

o $2 billion for Current Passenger Rail Service (directed to Amtrak)

• $10 billion for investments that spur reform through competition

o $3 billion for Rail Service Improvement Program (competitively awarded)

20

Summary

This five year plan…

• Clarifies grant program structure• Facilitates effective performance measurement

Enhancing World-Class SAFETY

MODERNIZING our Rail Infrastructure

Meeting the Growing MARKET DEMAND

Promoting INNOVATION

Ensuring TRANSPARENCY & ACCOUNTABILITY

• Advances comprehensive safety mission through proactive investments, training, and inspection programs

• Provides funds to support PTC implementation

• Fully replaces all legacy corridor equipment• Makes major progress on NEC maintenance backlog• Provides full funding level needed to achieve ADA

compliance at stations

• Makes targeted investments in passenger & freight rail where the business & public investment case is strongest

• Invests in American workforce, technology, suppliers• Positions domestic industry to be world-leading

21

Calendar of Press Opportunities

State Project Name Federal Funding Amount Milestone Target Month

California LOSSAN Crossover in San Diego $8 4 Million Groundbreaking June

California California State Rail Plan $1.5 Million Interim Report TBA

California San Joaquin Corridor Plan $300,000 Interim Report TBA

California Coast Daylight Corridor Investment Plan (LA to SF) $300,000 Interim Report TBA

California LOSSAN North Corridor Investment Plan $1.360 Million Interim Report TBA

California California High Speed Rail System $3 Billion Groundbreaking August

Connecticut New Haven Springfield Double Track $11 million Construction Update July

Florida Port of Miami Access $22.8 Million Construction Update July

Georgia Charlotte to Atlanta Feasibility Study $4.1 Million Public hearings September

Illinois Wadsworth Bridges $3.7 Million Project Complete June

New Jersey Portal Bridge Final Design $38.5 Million Final design June

New York Empire Corridor Capacity Improvements $58 Million Groundbreaking June

Michigan Chicago to Detroit Line $346 Million Transfer of ownership/Note of work in progress

June

North Carolina Piedmont Improvement Projects $73.5 Million Groundbreaking June

North Carolina Raleigh to Charlotte $ 4 Million Planning/public hearings May

Texas Tower 55 $23 Million Construction Update July

Texas Dallas-Houston Corridor Plan $15 Million Public Hearings August

Washington PNW Mudslide Improvement Projects $16.1 Million Begin Construction August

Washington Tukwila Station $7.9 Million Groundbreaking May