AASHTO Spring Meeting Freight and Passenger Rail Roundtable FRA Update May 23, 2017 Portland, Maine 1

Agenda ARRA Update FAST Act Implementation FY 2017 Funding Opportunities

ARRA/FY10 Rail Funding - $10.1 Billion Portfolio Total = ARRA/FY10 map, depicting entire $10.1 billion portfolio.

ARRA Expenditure Progress Update 86% percent of ARRA funds have been outlaid; $1.1B still needs to be reimbursed Data current as of May 19, 2017 Overall, as a precaution to allow sufficient time for processing and any corrections that may be needed, FRA established a June 30, 2017 deadline for submitting project invoices.  FRA will still accept invoices after this deadline; however, there is a risk of not being able to process invoices in time if they are received after June 30, 2017.  Through various forums, FRA has been communicating this deadline and subsequent risk to grantees over the last couple of years. The last day money can be outlaid is September 30, 2017. If the money isn’t awarded, it is returned to the US Treasury. Under FRA's grants, the grantee is responsible for funding the procurement after the Recovery Act funds expiration. Therefore, taxpayers will still gain value from their investment in this procurement.

FAST Act Amtrak Account Structure Requirements 5-Year Service Line Planning Amtrak Service Line / Asset Line Managers Train Operations Equipment Infrastructure Stations National Assets SS NEC LD INF ACCESS ANC 5-Year Asset Line Planning FRA Grant Oversight Report Data External Stakeholder Communication NEC Account National Network Leg & Grant Development (Year 1 of 5-Year Plans)

Amtrak 5-Year Service Line and Asset Line Plans Fiscally constrained Integrates with Amtrak account restructuring Plans will provide oversight and management of service lines and asset lines Service Lines Train Operations* Equipment Infrastructure Stations National Assets Asset Lines State Supported NEC Long Distance Access* Ancillary Key Talking Points: These plans also streamline some of Amtrak’s other planning requirements (e.g. replacing the five-year financial plan, and integrating fleet strategy plans and NEC planning efforts). The Infrastructure Access SL and the Train Operations AL were not included in FAST Act, but discussions with Amtrak in implementing account structure led to the addition of these two business functions. *These lines added per discussions between Amtrak and FRA

Financial Projections Amtrak 5-Year Service Line Plans: Content Initial plans expected on June 2, 2017; annually thereafter Contents Include: Goals & Service Plan Financial Projections Ridership Projections Performance Metrics Key Talking Points: Required content per FAST Act: Summary of goals, objectives, and service plan Projected revenues and expenditures Projected ridership levels Profit & loss statement and cash flow forecasts Specific performance measures showing Y-O-Y changes in Amtrak operations Financial performance for each route Cost and savings estimates resulting from reform initiatives

Amtrak Internal Inputs External Consultation Amtrak 5-Year Service Line Plans: Process Amtrak Internal Inputs External Consultation NEC Train Services Infrastructure Access State Supported Routes Long Distance Routes Ancillary Services Performance Data Financial Data Ridership Service Planning Trends/Forecasts Business Lines FRA NEC Commission SAIPRC Host Railroads States with LD Service Key Talking Points: Consult with DOT and partner states/agencies (e.g. NEC Commission, SAIPRC) FAST Act requires Amtrak to consult with DOT in developing all plans, and for Amtrak to consult with NECC and SAIPRC for NEC and SSR Plans. It also requires Amtrak to consult with any states providing funding for long distance service. There are likely other entities that Amtrak could consult with in developing these plans (host railroads, states with LD service even in the absence of funding). The goal should be a more collaborative planning effort. Identify appropriate Amtrak officials responsible for each Service Line Align with Leg & Grant request

Financial Projections Prioritized List of Capital Investments Amtrak 5-Year Asset Line Plans: Basics Initial plans expected on February 15, 2019; annually thereafter Contents Include: Goals & Service Plan Financial Projections Asset Inventory Prioritized List of Capital Investments Key Talking Points: Required content per FAST Act: Summary of goals, objectives, and statutory/regulatory issues Inventory of existing assets Prioritized project list of proposed capital investments Anticipated business outcomes of each project/program identified Profit & loss statement Appendix with additional funding needs Process: Still in the very early stages of development and discussion with Amtrak Consult with Amtrak Business Lines and integrate with Service Line Plans Consult with NECC, SAIPRC, owners of affected assets Identify appropriate Amtrak officials responsible for each Asset Category Process will include consultation with Service Lines and external partners

FRA Notes ‐Increases across the board for FRA programs: $19M for S&O, $1M for R&D, $105M for Amtrak, $27M for competitive grants ‐Report language specifies the following amounts for S&O activities: Safe Transportation of Energy Products ‐‐ $2M National Bridge Inventory Web‐based Portal ‐‐ $500K ATIP ‐‐ $15.09M Southeast Rail Commission ‐‐ $1M Positive Train Control ‐‐ $6.6M ‐Report language specifies the following amounts for R&D activities: Safety practices/training for Class II/III railroads ‐‐ $2M Research with universities on intelligent railroad systems ‐‐ $1M ‐Report language specifies the following amounts for CRISI: Capital projects that contribute to initiation/restoration of service ‐‐ $10M Other Appropriations Notes TIGER ‐‐ $500M FAST Act FTA PTC Grants ‐‐ $199M Bureau funding for establishment/administration ‐‐ $3M

FY 2017 Funding Opportunities ($ millions) Program FY17 Funding Eligible Projects Consolidated Rail Infrastructure & Safety Improvements (CRISI) $68 million Capital and planning projects to improve the safety, efficiency, and reliability of passenger and freight rail systems Federal-State Partnership for State of Good Repair $25 million State of good repair capital projects on publicly-owned or Amtrak-owned infrastructure, equipment, and facilities Restoration & Enhancement $5 million Operating assistance to initiate, restore, or enhance intercity passenger rail service FASTLANE Approx. $787 million Freight Rail projects eligible up to $500M over 5-years ($326M remains) TIGER $500 million Innovative projects, including multi-modal and multi-jurisdictional projects

Administration Monitoring/Oversight Grant Lifecycle Pre-Award (NOFO Development) Award (Obligation Process) Administration Monitoring/Oversight Closeout Key Activities NOFO Publication Application Intake & Evaluation Project Selection Notification Program Set-up Budget and SOW Development Creating Grant Award Grant Administration Annual Monitoring Project Management Grantee Notification Final Invoice Final Performance Report Stakeholder Outcome Agreements (SOAs) Duration Up to 5 months 6-12 months 3+ years 90 days This is the typical lifecycle for a new grant program. The FY17 budget appropriated funds for three new grant programs as well as appropriating funds for continuing FASTLANE and TIGER funds. In order to roll out each of these grant programs, FRA is undertaking a VERY AGGRESSIVE timeline. The notices of funding opportunity (NOFOs) will be released on a staggered basis beginning in late summer/early fall. We will communicate these announcements on our website and through outreach to our state partners.

F E D E R A L R A I L R O A D A D M I N I S T R A T I O N Q&A