Iowa’s LIFTS (Linking Iowa’s Freight Transportation System) Program SCORT Annual Meeting Chicago, IL October 4, 2016 Amanda Martin, Office of Rail Transportation

Overview Current Programs include: Trails Rail Highway LIFTS seeks to address gaps in multimodal funding Grant funding opportunity to improve Iowa’s freight transportation system Demonstrate demand and value of LIFTS program to support future investments Iowa DOT currently has a number of pots of money, which include grant and loan programs that are dedicated for specific transportation needs. For example, DOT has a specific pot for… Over past few years however, IDOT has noticed a gap in multi-modal funding, which is what the LIFTS program seeks to address to help improve Iowa’s freight transportation system as a whole. Over the past 2 years IDOT has attempted to work with state legislature to get an appropriation for a flexible multi-modal fund but has been unsuccessful….

Purpose Program Purpose: $2.69 Million was awarded on Feb 9, 2016 as grants Program Purpose: Enhance economic development by improving multimodal freight transportation system Provide flexible funding for changing demands of freight transportation system Enhance ability to provide competitive transportation options for shipment of products and moving goods Provide incentives to other modes for economic development partnership purposes In Spring of 2015, after unsuccessfully securing funding, IDOT took $2.7 million dollars from an old SIB fund and decided to create a pilot grant program to help prove to state legislature that there is a need for this funding. Summer of 2015, IDOT hosted a webinar….and then began an 8 week application process. Iowa DOT announced the funding availability in August 2015. SIB funds = recycled/second generation funds that now have quite a bit of program flexibility Purpose: the program is to provide grants for projects that help meet the changing demands on Iowa’s multimodal freight system. The intent is to provide funding for freight projects that have public benefit by enhancing the shipment of freight but are ineligible for state or federal highway funding

Eligible Applicants Applicant Eligibility: Transportation provider or user City or county Planning organization Other entity interested in freight transportation So who is eligible to apply? Open to a wide range of applicants, which included…

Match Private applicants: Eligible for 50% grant funding Public applicants or public-private partnerships: Eligible for 80% grant funding 2 categories of applicants…first being “private”. Second category was “public”

Eligible Projects Examples of the types of projects that may be funded: Transload facilities where products are transferred between rail and truck Capacity improvements at barge terminals Intermodal Facilities Barge transload facilities where products can be transferred from barge to truck Ramps or docks for loading/unloading air cargo Increase weight capacity to use heavier 286,000 lb. rail cars Expand or reconfigure rail yards to increase capacity or reduce dwell time. Safety improvements to increase freight capacity One of the most popular questions we received after doing the webinar was, “what are some examples of eligible projects?”. This is not an all inclusive list, but it does a good job of giving you an idea. Eligible projects included…

Ineligible Costs Ineligible project costs: Passenger rail Public transit and commuter rail Recreational trails Rolling stock Highway-RR crossing safety and surface improvements not associated with a LIFTS eligible project Transportation tourist sites Highway projects typically eligible for traditional highway funding Engineering not associated with a LIFTS eligible project Eventhough this was a multi-modal funding opportunity, there were some restrictions when it came to ineligible costs. These ineligible costs included…

LIFTS Project Evaluation Projects were evaluated by a review of: Freight Transportation Benefits (40%) including freight connectivity, how the project addresses freight challenges and improves freight mobility and reliability, and provides benefits to customers and shippers, Economic Benefits (30%) including job creation and retention, state-wide or regional influence, including benefits and cost savings to customers and shippers, other investment by sponsor (leveraging private investment) Public Benefits (20%) including highway user benefits, safety, congestion relief, environmental and other public benefits Project Readiness (10%) including design status, environmental clearances, permitting, expected timeline of project Once it was determined that a project met the Title 23 threshold criteria, IDOT we evaluated the project applications on four categories that are weighted as shown…(explain). We then developed a scoring matrix based on these overall categories and rated the project applications on categories as high/medium/low and assigned points.

Funding Demand Iowa DOT has $2.7 to award for LIFTS 25 grant requests totaled $17.2 Million Demonstrates a $14.4 million gap in funding FUNDING GAP After the 8 week application period, the DOT received 25 applications requesting 17.2 million in requests. This image demonstrates a $14.4 million doller gap in funding. We like this image and feel as if it will help us when it comes time to going back to State legislature for future funding requests.

Breakdown of Applications Types of Projects Public (public-private) are eligible for 80% grant funding Private Companies are eligible for 50% grant funding Public vs. Private This slide shows you a breakdown of the applications by applicant type and project category. We received 3 private applications, 18 public-private applications and 4 public applications. When it came down to the types of projects that were applied for we found that most of them fell within three categories…we had 13 transload projects, 3 planning studies, and 9 rail improvement studies.

Map here shows where within the State of Iowa the projects were located. Red being planning studies, green being rail improvement projects, and blue transload projects. Staff was very please to see that the projects were spread fairly evently throughout the state. Had we had more time to accept projects and market the program even more I think we would have seen the south pop up, too!

Proposed Project Facts (from all applications) 9,306,204 Tons of freight shipped annually 342 jobs created and or retained $51,522,395 Invested in Iowa freight over the next 5 years. 2 involved Mississippi transportation Over the next 5 years 890,013,112 Ton-miles of freight diverted from the highway system This is just a fun graphic I made that shows when you take into account all 25 applications… 9.3 million tons of freight would be shipped annually over the next 5 years 342 Jobs created $51,522, 295 invested in freight in Iowa 890,013,112 ton-miles of freight would be diverted from the highway on to other modes of transportation This is another slide we hope to take to prove our point to legislature in the future. Transload applications varied General merchandise Specific products Storage

For More Information: Website: Laura Hutzell Laura.Hutzell@dot.iowa.gov 515-239-1066 Website: http://www.iowadot.gov/iowarail/assistance/lifts.htm

(Rail Revolving Loan & Grant) Program Iowa’s RRLG (Rail Revolving Loan & Grant) Program SCORT Annual Meeting, Chicago, IL Oct. 4, 2016 Amanda Martin, Office of Rail Transportation

Summary Created in 2005/2006 The program provides financial assistance to improve rail facilities that will create jobs, spur economic activity and improve the rail transportation system in Iowa. Funded by loan repayments and an appropriation by State Legislature Usually $2-2.5M

3 Categories to Apply 1.)    Targeted Job Creation: (requires job creation and or retention).  Grants only.  Maxed at $12,000 per job.  Can also request a loan in this category (no max) 0% interest for 10 years.  Grants require a 50% match, loans 20%. 2.)    Rail Network Improvement:  Loans only.  All 0% interest for 10 years.  No Max.  Requires a 20% match. 3.)    Rail Port Planning Studies:  Grants only.  Require 20% match.  Maxed at $100,000. Targeted Job Creation (track related projects that involve job creation or retention): Eligible projects: Rail infrastructure construction or improvements serving specific industries, industrial development projects, or industrial park development. Rail Network Improvements (typically all track projects – rail spurs, track restoration, bridge restoration or yard improvement): Projects include, but are not limited to: Rail yard improvement, expansion, or rehabilitation; construction of branch lines or passing track; bridge repair or replacement. Industrial park development without a specific committed business and associated jobs. Improvement or creation of industrial spurs or other rail infrastructure that adds or improves access of industry to the rail transportation network. Rail Port Planning and Development Studies (feasibility studies for transload facilities or industrial parks): Eligible projects include planning and development studies that collect data and information that enable a community, county, or region to make fact-based decisions concerning the location, design, or funding requirements for a rail port facility. The end result of a planning study should help decision-makers evaluate rail development options that support industrial and business progress and economic growth in the community and region.

Other Info. Applications may be submitted at any time and are reviewed as funding is available.  Since Program Started Funding Provided $42 million Jobs Affected 2,000 new and/or retained Projects Funded 120 projects Other Capital Investment Associated with Awards $660,000

Summary Created in 2005/2006 The program provides financial assistance to improve rail facilities that will create jobs, spur economic activity and improve the rail transportation system in Iowa. Funded by loan repayments and an appropriation by State Legislature Usually $2-2.5M

Project Example #1 West Charles Street Viaduct, Oelwein, Iowa FY 15 Targeted Job Creation project  Cost $654,315.00  RRLG Award: $523,452 ·         Grant: $327,157 (54 jobs created/retained) ·         Loan: $196,294   A recent inspection found that the rail over the viaduct is in poor condition and recommended the reconstruction (removal and replacement) of the east end of the bridge in Oelwein, Iowa.  The inspection had found “…significate deterioration to the concrete, heavy corrosion and section loss to the encased beams on the east end”.  Should failure of occurred to the bridge, both the rail and roadway would  of been affected, impacting the businesses reliant upon the rail as well as those reliant upon access from West Charles Street.  With the potential growth opportunities along this short line railroad, replacing the failing section of the viaduct to handle future sized loads was imperative.  Before Before After After

Project Example #2 Heartland Coop Greenfield Rail Loading Elevator,  Fairfield, Iowa Loop Track Project  Cost $3.3M  RRLG Award: $1.4M (all loan)   Summary:   Rail network improvement project, which included a state of the art grain elevator terminal was built to efficiently receive large volumes of corn and soybeans from inbound semis and transfer to la large 125 car “shuttle” trains.  Creation of this grain elevator has provided access to new markets via the BNSF line that are not currently available to the producers in the area.  A state of the art grain elevator terminal was built to efficiently receive large volumes of corn and soybeans from inbound semis and transfer to la large 125 car “shuttle” trains.  RRLG grant paid for the loop track not the grain elevators. After Before

For More Information: Laura Hutzell Laura.Hutzell@dot.iowa.gov 515-239-1066 Website: http://www.iowadot.gov/iowarail/assistance/rrlgp.htm