State Rail Service Improvement Fund (SRSIF) 2016 SCORT ANNUAL MEETING October 3 – 6, 2016 Chicago, Illinois State Rail Service Improvement Fund (SRSIF) John Maddox, CPM Freight and Rail Program Manager Kansas Department of Transportation

Program History K.S.A. 75-5041 – Establishment of the rail service assistance program (1991) K.S.A. 75-5048 – Rail service assistance program requirements and restrictions K.S.A. 75-5049 – Rail service assistance program loan requirement and guidelines K.S.A. 75-5051 – Rail service assistance program rules and regulations K.A.R. 36-39-1 through 36-36-6 – Rail service assistance program guidelines

Program History Local Rail Freight Assistance (LRFA) program Kansas Comprehensive Transportation Program (CTP) Signed into law by Governor Bill Graves in May 1999 Kansas Secretary of Transportation – E. Dean Carlson Established state funded program for rail rehabilitation and infrastructure improvement projects Funded at $3 million annually for 10 years T-WORKS (Transportation Works for Kansas) Signed into law by Governor Mark Parkinson in May 2010 Secretary of Transportation – Deb Miller Funded at $5 million annually (no sunset)

SRSIF Program Structure Loan-Grant-Match program Qualified Entities: Railroads operating in Kansas; local units of government, shippers or port authorities in coordination with serving railroad Project Types: major rehabilitation, capacity improvement, economic development

SRSIF Program Structure Of total project cost: Loan = 40% (2% interest, 10-year payback period) Reimbursable Grant = 30% Applicant Match = 30% 5% retainage on all invoices paid until project is audited upon completion Promissory Note and Uniform Commercial Code (UCC) Financing Statement filed with Kansas Secretary of State

SRSIF Program Structure Annual Call for Applications Cost-Benefit Analysis (CBA) Cost-Benefit Ratio (CBR) = 1.0 > (statutory) Project rankings based on CBR Project agreement Notice to Proceed Minimum of four site visits (preconstruction, materials, construction, post-construction) Notice of Acceptance

Program Results – By the Numbers 63: Rehabilitation, construction and capacity improvement projects 10: Shortline railroads have used program 2: Transload facility projects 1: On short line 1: On Class I 2: Local units of government have used program 2: Shippers have used program 1: Port authority has used program 1: Class 1 project 4: KDOT match participation – TIGER Grants (II, III, VI & VII)

Program Results – By the Numbers 620,000: Crossties installed 405,500: Tons of ballast installed 6,500: Tons of rail installed $99,800,000: Total project cost $53,000,000: Project grants $23,500,000: Project loans $23,300,000: Applicant match

Thank You! Questions John W. Maddox, CPM johnm@ksdot.org 785-296-3228