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Federal Railroad Administration High-Speed Intercity Passenger Rail Program March 14, 2011 Contents 1. 1 Myths and Facts 2 HSIPR Timeline 2. 3 Next Steps 3. 4 Questions 4. 2 Myths and Facts 3 Myths and Facts: High-Speed Rail President Obama’s goal of “giving 80% of Americans access to high-speed rail” within 25 years is realistic and achievable FACTS • 70% of the U.S. population already live in the nations 11 largest “megaregions” • 70 million new people by 2035 - most living in megaregions • High-speed rail will be critical to alleviate congestion both in the air and on the roads • 25 year timeline is supported by the $53 billion proposal, the infrastructure bank, and private sector support 4 Myths and Facts: High-Speed Rail Modes of intercity transportation don’t fully pay for themselves FACTS • Less than 66% of highway spending is covered by transportation-generated revenues • Since 1947, money spent on highways and roads has exceeded the amount raised through “user fees” by $600 billion • Transportation investments are a vital governmental responsibility Desired partnerships between foreign high-speed rail operators and States will: • Attract additional private capital • Lessen the burden on the public sector 5 Myths and Facts: High-Speed Rail America is not a just car culture – people in this country will take the train FACTS • Amtrak ridership has increased 33% in the Northeast Corridor, and 72% in its Chicago Hub in last 10 years • Rising gas prices and increasing airport and traffic congestion are the norm • With 70 million new people living in the U.S. by 2035, the demand for passenger rail will only grow to offset the societal costs of traffic congestion Public opinion polls reveal strong support for high-speed rail: • 84% of Americans favor building high-speed rail • Only 20% of Americans favored building new roads to deal with congestion 6 Myths and Facts: High-Speed Rail America has a national population density that is equivalent to other countries where rail works well FACTS • U.S. megaregions are comparable in population and geography to characteristics of successful high-speed rail systems abroad • A Midwest rail system would serve the same number of people as the current French system centered in Paris • The Midwest system would connect 5 regions with over 2 million residents; the French only connects 2 such regions. Total Pop. 27 million 28 million Ave. Metro Density 850 ppl./sq.mi. 2,600 ppl./sq.mi. Ave. City Density 5,800 ppl./sq.mi. 10,650 ppl./sq.mi. 2M+ Metro Regions 5 2 7 Myths and Facts: High-Speed Rail Increasing air and highway capacity will not accommodate our mobility needs more efficiently or cost effectively FACTS • Cost of congestion has risen from $24 billion in 1982 to $115 billion in 2009 • Nearly 99% of all U.S. air passengers commute through the largest 100 metropolitan areas • The estimated cost per unit of capacity for a high-speed rail system is only 17% of the equivalent airport capacity, and 50% of urban freeway capacity 8 Myths and Facts: FRA and the HSIPR Program The HSIPR Program invests strategically to have the greatest impact FACTS • The ideal arrangement for cost effective mobility is a network of trains operating at different speeds, serving different markets • In 2008, the total ridership on the French rail network was 389 million passengers • High-speed rail (TGV) ridership is 25% • Intercity ridership is 75% • More than 60% of Program funding is going to major corridors 9 Myths and Facts: FRA and the HSIPR Program Response to HSIPR funding solicitations demonstrates pent up demand for passenger rail investment FACTS • States have responded to the HSIPR Program with intense competition for Federal funds • In 2009, FRA received 259 grant applications from 37 states and DC requesting nearly $57 billion in funding • For FY10 and residual FY09 funding, FRA received 132 grant applications from 32 states totaling more than $8.8 billion • FRA has received more 2 dozen letters requesting remaining funding be allocated to their projects 10 Myths and Facts: FRA and the HSIPR Program The HSIPR Program has created opportunities for private-sector participation in highspeed rail development FACTS • Public-private partnerships are at the core of the HSIPR Program • Over 30 rail manufacturers and suppliers have committed to establish or expand their base of operations in the U.S. if chosen by states to build high-speed rail lines 11 Myths and Facts: FRA and the HSIPR Program The ARRA, FY 2009 and FY 2010 selection process was based on project benefits FACTS • FRA convened DOT and external subject matter experts to review and assess applications for each solicitation based on public, transportation, and economic benefits • In this merit-based process, evaluators assessed project delivery and success factors • Based on analysis, FRA funded meritorious applications – regardless of stage in the development process 12 HSIPR Timeline 13 HSIPR by the numbers 259 The total number of applications submitted for FY 2009 and ARRA funding 6 The number of solicitations for FY 2009 Residual and FY 2010 appropriations 62 The percentage of total funding available for FY 2009 and ARRA that has been obligated 136 The total number of projects selected to receive funding under ARRA, FY 2009, and FY 2010 appropriations 8 The number of Service Development Programs selected to received funding under FY 2009 Residual and FY2010 appropriations 565 The number of days to complete all obligations before September 2011 14 HSIPR: Obligation Updates $4.9 billion has been obligated through 33 awards for 28 projects 15 Next Steps 16 Solicitation Overview Purpose Identify meritorious, ready-to-go projects for newly available HSIPR funding (funds available today and potentially in future) Eligibility Requirements Eligible Applicants Eligible Projects States, groups of States, interstate compacts, public agencies, Amtrak, and Amtrak in cooperation with States. • Individual PE/NEPA Projects • Individual FD/Construction Projects, and • Service Development Programs. Applications Due Monday, April 4, 2011 at 8 p.m. EDT 17 Funding Source Information Currently-Available Funds Funding Source Project Type Approximate Amount Maximum Fed Share Obligation Deadline* Closeout Deadline ARRA • Service Dvlp Programs • Individual Projects $1,631 million 100% 9/30/2012 9/30/2017 FY10 Approps •Service Development Programs $800 million 80% N/A N/A TOTAL $2,431 million FRA will determine which funding source to provide to selected projects *FRA intends to select projects that can promptly proceed to award/obligation 18 Project Development Phases The current solicitations are associated with different phases of project development. A Planning SDP Service NEPA PE / Project NEPA B Individual Projects Final Design C Construction Service Development Programs 19 Selection Approach Application Review and Selection 1. Completeness and eligibility Review and Selection 2. Project readiness 3. Project benefit & delivery criteria 4. Cross-cutting/ comparative criteria • NEPA compliance Key Readiness Indicators • Service Outcomes Agreements • Statement of work – scope, schedule and budget 20 Next Steps and Reminders Application Forms Available on Monday, March 14th Submission Use the GrantSolutions System, similar to prior HSIPR rounds Key Reminders Submit the best, most ready projects. Use prior feedback to improve applications. Customer leads and subject matter experts are available to answer questions. 21 Next Steps FRA will be assisting applicants throughout application process Assistance Applicant Next Steps Prior to the application deadline: This week: • NOFA application webinar • Review NOFA • Regular conference calls • Review Application Form(s) • Access to Customer Leads and subject matter experts • Register on Grant Solutions • Participate in webinar • Updates to the FRA website • Coordinate with your Customer Lead • “Contact Us” on FRA HSIPR website 22 Questions 23