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1 1 (September 9, 2021)

handle is hein.crs/goveema0001 and id is 1 raw text is: C onre s io a R e ea c Ser c S September 9, 2021 Passenger Rail Expansion in the Senate Infrastructure Bill On August 10, 2021, the Senate passed an amended version of H.R. 3684, the Infrastructure Investment and Jobs Act. The bill contains a five-year reauthorization of surface transportation programs, including those for freight and passenger rail. It would retain or alter many programs authorized in the previous authorization act, the Fixing America's Surface Transportation Act of 2015 (FAST Act; P.L. 114-94). Besides setting authorized funding levels subject to the availability of future appropriations, it would directly appropriate $550 billion in additional funds, including $66 billion for rail, to be made available to recipients in (usually equal) portions on a yearly basis through FY2026. Of that $66 billion, barring any future rescissions, at least $18 billion would be available for costs directly related to expanding passenger service to new corridors, in addition to funds that may be made available through other multimodal programs. Unless otherwise noted, rail grant programs are to be administered by the Federal Railroad Administration (FRA), part of the Department of Transportation (DOT). Federal-State Partnership for Intercity Passenger Rail Program Section 22307 would make substantial changes to the Federal-State Partnership for State of Good Repair program first authorized by the FAST Act. Renamed the Federal- State Partnership for Intercity Passenger Rail program, it would constitute the bulk of funding available for implementing new passenger rail routes. While the original program prioritized rehabilitation or replacement of aging infrastructure on the Northeast Corridor (NEC) between Boston and Washington, the revised program would have broader eligibility in terms of project types and selection criteria. As amended by the Senate, the bill would appropriate $36 billion for the program, of which no more than $24 billion could be awarded to projects on the NEC. Accordingly, at least $12 billion would be available for off-NEC network expansion. The bill would also authorize $7.5 billion for the program contingent on future appropriations, of which $3.4 billion to $4.1 billion would be available for network expansion, with the remainder reserved for projects on the NEC. For projects not located on the NEC, the bill would prioritize those for which Amtrak is not the sole applicant, and that are consistent with a corridor inventory prepared under the Corridor Identification and Development Program described below. The program would allow the Secretary of Transportation to issue letters of intent committing future appropriations to selected applicants, and/or to enter into phased funding agreements for larger projects. Depending on how DOT structures the grant solicitation, this could potentially allow it to commit most or all of the $36 billion in supplemental appropriations such that funds would be disbursed over a multiyear period to a single cohort of selected projects. Even discounting projects on the NEC, there are a number of large projects currently under way that might be eligible under the program, including the California High Speed Rail project. Restoration and Enhancement Grant Program The Restoration and Enhancement grant program was created in the FAST Act and would be reauthorized with few changes in Section 22304 of the Senate bill. The program differs from other rail grant programs in that funds may be used to cover operating (as opposed to only capital) expenses for the first several years, in order to defray the costs ordinarily borne by states under federal law. The Senate bill would expand the use of grant funds for that purpose; whereas current law allows the federal government to pay 80% of the cost of operating a new route in the first year, declining to 40% in the third year, the bill would allow federal funds to cover a share that declines from 90% to 30% over six years. This change would lessen the near-term cost of a new route for state governments and allow more time for state sponsors to generate ridership and identify sources of state funding. The program was originally intended to support reactivation of routes previously served by Amtrak, such as the New Orleans-Mobile corridor that has been without Amtrak service since 2005. While projects to restore service over routes served by Amtrak prior to 2015 are to be given priority under H.R. 3684, so are routes that would enhance connectivity and geographic coverage of the existing national network of intercity rail passenger service. This suggests that a route that has received no intercity rail service since before the creation of Amtrak in 1970 would still be eligible for funding under the program, and would be entitled to receive priority in the selection process if it connects to the current network. The bill's supplemental appropriations include $250 million for the program, to be withheld from amounts appropriated for Amtrak National Network Grants as described below. The bill would also authorize $250 million for the program contingent on future appropriations. Amtrak National Network Grants for Corridor Development The bill would increase annual funding for National Network grants, which would be available for Amtrak's share of eligible costs associated with new and existing routes off the NEC, after certain set-asides (including $250 million for Restoration and Enhancement grants as ittps://Crsreports.congress.

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