FY 2014 Budget & Five-Year Reauthorization Proposal FEDERAL RAILROAD ADMINISTRATION FY 2014 Budget & Five-Year Reauthorization Proposal AASHTO Communicators’ Call May, 2013

Calendar of Press Opportunities Contents Trends Investment Summary Budget Context Key Themes Proposal Details Calendar of Press Opportunities

Trends Affecting Transportation 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 Dependency 14m barrels/day for transportation. (Source: U.S. Energy Information Administration) Congestion $125 billion/year (Sources: Texas Transportation Institute; Air Transport Association) Five transportation challenges requiring new, bold and innovative solutions

Trends: Young Americans’ Changing Transportation Habits 40% Transit 23% Driving

Trends: Rail Gaining Market Share Source: Amtrak

We are making $18 billion in rail investments Investment Summary by Category 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 Region: $18 Billion Invested Since 2009 Northeast Population: 52M World’s 5th largest economy Pacific Northwest Population: 8.4M World’s 30th largest economy Midwest Population: 56M World’s 7th largest economy California Population: 38M World’s 9th largest economy Southeast Population: 18M World’s 20th largest economy

Investment Summary by Category 6,000 corridor miles 40 stations passenger cars locomotives trainsets 260 105 3 engineering/environmental studies 75 state rail & service development plans 30

Station Development

The FY 2014 budget signals proposed direction for reauthorization Budget Context: Timeline The FY 2014 budget signals proposed direction for reauthorization today FY12 FY13 FY14 FY15 MAP-21 signed into law; no rail title PRIIA/RSIA (current rail authorizations) expire MAP-21 expires

A changed rail landscape since the 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.

Key themes for FY 2014 budget and five-year plan Enhancing World-Class Safety FRA’s budget continues to enhance rail safety, already among the safest modes of transportation, building on last year’s record. Modernizing our Rail Infrastructure FRA’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 Demand FRA’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 Innovation FRA’s budget invests in research, development and workforce training to ensure America’s global lead in safety, productivity and technological innovation. Ensuring Transparency & Accountability FRA’s budget provides program transparency to ensure delivery of public benefits and accountability of public resources.

Transportation Trust Fund FY 2014 and five-year plan Five coordinated accounts, two funding sources 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 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 Workforce Development 125 TOTAL 6,635 40,000 (excl. S&O) Traditional FRA accounts General Fund Current services (incl. Amtrak) organized by “business lines” Integrated passenger + freight improvement programs Transportation Trust Fund (new Rail Account) New focus on workforce, innovation * Incl. 0.5% oversight takedown ** Incl. 1% oversight takedown

Current Passenger Rail Service (FY14 Request = $2.7 billion) Program Area Eligible Activities Eligible 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 States Long-Distance Routes $800 million Capital and operating to support long-distance route service National Assets $925 million Capital and operating – National “backbone” assets Capital – Positive train control Capital – ADA at stations Debt service

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

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 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 Ports Local governments Planning $70 million National, multi-state, and state rail planning Corridor and terminal area planning Northeast Corridor FUTURE Metropolitan planning organizations FRA

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

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 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

$2 billion for Current Passenger Rail Service (directed to Amtrak) 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 $2 billion for Current Passenger Rail Service (directed to Amtrak) $10 billion for investments that spur reform through competition $3 billion for Rail Service Improvement Program (competitively awarded)

This five year plan… Summary Advances comprehensive safety mission through proactive investments, training, and inspection programs Provides funds to support PTC implementation Enhancing World-Class Safety Modernizing our Rail Infrastructure Meeting the Growing Market Demand Promoting Innovation Ensuring Transparency & Accountability 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 Clarifies grant program structure Facilitates effective performance measurement

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 State Rail Plan $1.5 Million Interim Report TBA San Joaquin Corridor Plan $300,000 Coast Daylight Corridor Investment Plan (LA to SF) LOSSAN North Corridor Investment Plan $1.360 Million California High Speed Rail System $3 Billion August Connecticut New Haven Springfield Double Track $11 million Construction Update July Florida Port of Miami Access $22.8 Million Georgia Charlotte to Atlanta Feasibility Study $4.1 Million Public hearings September Illinois Wadsworth Bridges $3.7 Million Project Complete New Jersey Portal Bridge Final Design $38.5 Million Final design New York Empire Corridor Capacity Improvements $58 Million Michigan Chicago to Detroit Line $346 Million Transfer of ownership/Note of work in progress North Carolina Piedmont Improvement Projects $73.5 Million Raleigh to Charlotte $ 4 Million Planning/public hearings May Texas Tower 55 $23 Million Dallas-Houston Corridor Plan $15 Million Public Hearings Washington PNW Mudslide Improvement Projects $16.1 Million Begin Construction Tukwila Station $7.9 Million