High-Speed Intercity Passenger Rail Program March 14, 2011 Federal Railroad Administration

2 Contents 1.Myths and Facts 2.HSIPR Timeline 3.Next Steps 4.Questions

Myths and Facts 3

4 Myths and Facts: High-Speed Rail President Obama’s goal of “giving 80% of Americans access to high-speed rail” within 25 years is realistic and achievable FACTS 70% of the U.S. population already live in the nations 11 largest “megaregions” 70 million new people by most living in megaregions High-speed rail will be critical to alleviate congestion both in the air and on the roads 25 year timeline is supported by the $53 billion proposal, the infrastructure bank, and private sector support

5 Myths and Facts: High-Speed Rail Modes of intercity transportation don’t fully pay for themselves FACTS Less than 66% of highway spending is covered by transportation-generated revenues Since 1947, money spent on highways and roads has exceeded the amount raised through “user fees” by $600 billion Transportation investments are a vital governmental responsibility Desired partnerships between foreign high-speed rail operators and States will: Attract additional private capital Lessen the burden on the public sector

6 Myths and Facts: High-Speed Rail America is not a just car culture – people in this country will take the train FACTS Amtrak ridership has increased 33% in the Northeast Corridor, and 72% in its Chicago Hub in last 10 years Rising gas prices and increasing airport and traffic congestion are the norm With 70 million new people living in the U.S. by 2035, the demand for passenger rail will only grow to offset the societal costs of traffic congestion Public opinion polls reveal strong support for high-speed rail: 84% of Americans favor building high-speed rail Only 20% of Americans favored building new roads to deal with congestion

7 Myths and Facts: High-Speed Rail America has a national population density that is equivalent to other countries where rail works well FACTS U.S. megaregions are comparable in population and geography to characteristics of successful high-speed rail systems abroad A Midwest rail system would serve the same number of people as the current French system centered in Paris The Midwest system would connect 5 regions with over 2 million residents; the French only connects 2 such regions. Total Pop.  27 million  28 million Ave. Metro Density  850 ppl./sq.mi.  2,600 ppl./sq.mi. Ave. City Density  5,800 ppl./sq.mi.  10,650 ppl./sq.mi. 2M+ Metro Regions 52

8 Myths and Facts: High-Speed Rail Increasing air and highway capacity will not accommodate our mobility needs more efficiently or cost effectively FACTS Cost of congestion has risen from $24 billion in 1982 to $115 billion in 2009 Nearly 99% of all U.S. air passengers commute through the largest 100 metropolitan areas The estimated cost per unit of capacity for a high-speed rail system is only 17% of the equivalent airport capacity, and 50% of urban freeway capacity

9 Myths and Facts: FRA and the HSIPR Program The HSIPR Program invests strategically to have the greatest impact FACTS The ideal arrangement for cost effective mobility is a network of trains operating at different speeds, serving different markets In 2008, the total ridership on the French rail network was 389 million passengers High-speed rail (TGV) ridership is 25% Intercity ridership is 75% More than 60% of Program funding is going to major corridors

10 Myths and Facts: FRA and the HSIPR Program Response to HSIPR funding solicitations demonstrates pent up demand for passenger rail investment FACTS States have responded to the HSIPR Program with intense competition for Federal funds In 2009, FRA received 259 grant applications from 37 states and DC requesting nearly $57 billion in funding For FY10 and residual FY09 funding, FRA received 132 grant applications from 32 states totaling more than $8.8 billion FRA has received more 2 dozen letters requesting remaining funding be allocated to their projects

11 Myths and Facts: FRA and the HSIPR Program The HSIPR Program has created opportunities for private-sector participation in high- speed rail development FACTS Public-private partnerships are at the core of the HSIPR Program Over 30 rail manufacturers and suppliers have committed to establish or expand their base of operations in the U.S. if chosen by states to build high-speed rail lines

12 Myths and Facts: FRA and the HSIPR Program The ARRA, FY 2009 and FY 2010 selection process was based on project benefits FACTS FRA convened DOT and external subject matter experts to review and assess applications for each solicitation based on public, transportation, and economic benefits In this merit-based process, evaluators assessed project delivery and success factors Based on analysis, FRA funded meritorious applications – regardless of stage in the development process

HSIPR Timeline 13

14 HSIPR by the numbers 259 The total number of applications submitted for FY 2009 and ARRA funding 6 The number of solicitations for FY 2009 Residual and FY 2010 appropriations 62 The percentage of total funding available for FY 2009 and ARRA that has been obligated 136 The total number of projects selected to receive funding under ARRA, FY 2009, and FY 2010 appropriations 8 The number of Service Development Programs selected to received funding under FY 2009 Residual and FY2010 appropriations 565 The number of days to complete all obligations before September 2011

15 $4.9 billion has been obligated through 33 awards for 28 projects HSIPR: Obligation Updates

Next Steps 16

17 Solicitation Overview Eligibility Requirements Eligible Applicants States, groups of States, interstate compacts, public agencies, Amtrak, and Amtrak in cooperation with States. Eligible Projects Individual PE/NEPA Projects Individual FD/Construction Projects, and Service Development Programs. Purpose Identify meritorious, ready-to-go projects for newly available HSIPR funding (funds available today and potentially in future) Applications Due Monday, April 4, 2011 at 8 p.m. EDT

18 Funding Source Information Currently-Available Funds Funding Source Project Type Approximate Amount Maximum Fed Share Obligation Deadline* Closeout Deadline ARRA Service Dvlp Programs Individual Projects $1,631 million100%9/30/20129/30/2017 FY10 Approps Service Development Programs $800 million80%N/A TOTAL$2,431 million *FRA intends to select projects that can promptly proceed to award/obligation FRA will determine which funding source to provide to selected projects

19 Project Development Phases AB C Service Development Programs Individual Projects 19 Final DesignConstruction Planning SDP Service NEPA PE / Project NEPA The current solicitations are associated with different phases of project development.

20 Selection Approach Application Review and Selection Review and Selection 1.Completeness and eligibility 2.Project readiness 3.Project benefit & delivery criteria 4.Cross-cutting/ comparative criteria Key Readiness Indicators NEPA compliance Service Outcomes Agreements Statement of work – scope, schedule and budget

21 Next Steps and Reminders Application FormsAvailable on Monday, March 14 th SubmissionUse the GrantSolutions System, similar to prior HSIPR rounds Key Reminders Submit the best, most ready projects. Use prior feedback to improve applications. Customer leads and subject matter experts are available to answer questions.

22 Next Steps 22 FRA will be assisting applicants throughout application process Assistance Prior to the application deadline: NOFA application webinar Regular conference calls Access to Customer Leads and subject matter experts Updates to the FRA website “Contact Us” on FRA HSIPR website Applicant Next Steps This week: Review NOFA Review Application Form(s) Register on Grant Solutions Participate in webinar Coordinate with your Customer Lead

Questions 23