PRIIA Section 209 States Working Group/Amtrak Update Standing Committee on Rail Transportation September 12, 2011

Overview & Outreach October 2010: November 2010: December 2010: First of several SWG/Amtrak meetings November 2010: State survey December 2010: SWG/Amtrak meeting January 2011: State Meetings /Calls February 2011: SWG proposes new methodology to Amtrak Amtrak Board generally concurs with new SWG proposed methodology. March 2011: FRA Update AASHTO Leadership Briefing State Briefings June 2011: NEC Corridor Commission Briefing Draft Policy sent to states for comment August 2011: Final Draft Policy sent to states for comment MidWest/other briefings Amtrak Board approves Policy September : Policy sent to Governors requesting September 30, 2011 concurrence.

Basics of the 209 Cost Proposal States Pay 100% of Route Costs         Shared Costs replaced with Support Fees (overhead) based on selected Route Costs and directly proportionate to services provided to States by Amtrak. Capital Charges will support maintenance of Amtrak owned capital assets used by states. Primarily includes Amtrak owned equipment & stations Forward looking Amtrak will develop capital plan in cooperation with States Replaces original depreciation model

State Operating Cost Outline

Contract Cost Implications

We’re Here to Help SWG & Amtrak 209 Team are willing to provide help and assistance going forward. There are many opportunities to further reduce/control costs & to increase revenues. It’s time to focus on building and growing our services.

The Time to Concur is Now Policy concurrence does not mean acceptance of budget numbers. Policy does not take effect until October 1, 2013. Concurrence now can help deter other competing proposals which could have a less favorable impact on States. FRA Grants require ongoing support of services Letter from the Chairs of SCORT & SPRC support the policy and recommend concurrence in the best interest of the States and the industry.

Who’s On Board?