1. Railroad Rehabilitation & Improvement Financing Program FEDERAL RAILROAD ADMINISTRATION U.S. DEPARTMENT OF TRANSPORTATION

2. RRIF Overview The Railroad Rehabilitation & Improvement Financing (RRIF) Program provides direct federal loans and loan guarantees to finance development of railroad infrastructure. Direct loans can fund up to 100% of a railroad project with repayment periods of up to 35 years and interest rates equal to the cost of borrowing to the government. Borrowers can request to defer repayment for up to 6 years. 2

3. Borrower Eligibility 3

4. Project Eligibility RRIF funding may be used to: Acquire, improve, or rehabilitate intermodal or rail equipment or facilities, including track, components of track, bridges, yards, buildings and shops; Refinance outstanding debt incurred for the purposes listed above; and Develop or establish new intermodal or railroad facilities 4

5. Public Benefits: 45 U.S.C. § 822(c) Priority Projects (1) enhance public safety; (2) enhance the environment; (3) promote economic development; (4) enable United States companies to be more competitive in international markets; (5) are endorsed by the plans prepared under section 135 of title 23 by the State or States in which they are located; (6) preserve or enhance rail or intermodal service to small communities or rural areas; (7) enhance service and capacity in the national rail system; or (8) would materially alleviate rail capacity problems which degrade the provision of service to shippers and would fulfill a need in the national transportation system. 5

6. RRIF Notice 6 In September 2010, FRA published the Notice Regarding Consideration and Processing of Applications for Financial Assistance Under the Railroad Rehabilitation and Improvement Financing (RRIF) Program at 75 FR 60165. Public Benefits: Notice helps potential applicants understand what we would be looking for in applications Refinancing: Notice explains favorable versus unfavorable refinancing purposes RRIF Loan Volume: Notice explains that DOT will review volume of RRIF transactions (prevent inflationary pressure leading to curtailment of transportation investment)

7. Application Process 7 Preapplication MeetingSubmit ApplicationEnvironmental & Engineering ReviewIndependent Financial Advisor HiredApplication Deemed Complete & 90-Day Clock StartedIFA completes work & FRA presents to DOT Credit CouncilFRA Administrator Approves Loan & Package sent to Office of Management & BudgetTerm Sheet & Closing Documents Signed

8. National Environmental Policy Act (NEPA) The FRA must fulfill its obligations under the National Environmental Policy Act (NEPA) and related laws, regulations and orders. In many cases, the FRA will need simply to approve a short environmental form (Categorical Exclusion worksheet) submitted with the application. However, in some cases, compliance with NEPA may require preparation of detailed environmental assessments, consultation with Federal and State authorities, publication of documents, and public review and comment on these documents. 8

9. Borrower’s Costs 9 Can range from 0-100% of loan amount CRP is reduced by offering collateral (though collateral is NOT required) Credit Risk Premium (CRP) 1. FINANCIAL ADVISOR FEE Paid regardless of whether loan is approved May not exceed one half of 1% of the requested loan amount, but it is often substantially less 2. OUTSIDE COUNSEL (if necessary) Needed in complex transactions Not typically necessary for most loans Investigation Fee

10. Timing: The 90-Day Clock The Federal Railroad Administration (FRA) will approve or disapprove a request for a loan within 90 days after receipt of a complete application. Applications will be deemed complete after the following: The FRA has fulfilled its obligations under the National Environmental Policy Act (NEPA) and related laws, regulations and orders. FRA has completed its Engineering Review. The Independent Financial Advisor states that they have all the materials from the applicant needed to complete their required analysis. 10

11. Preapplication Meeting FRA encourages any interested entity to participate in a preapplication meeting, which has two functions: 1.RRIF analysts provide potential applicants with a detailed description of the RRIF application process and answer any initial questions. 2.As potential applicants describe their proposed project, RRIF analysts can quickly assess whether there are specific aspects of the application process that the applicant should focus on, such as the environmental evaluation. Please visit the FRA RRIF website for details on the RRIF application process: http://www.fra.dot.gov/rpd/freight/1770.shtml 11

12. Contact Information If you have questions about the program, or if you wish to discuss the possibility of funding your project with a loan or a loan guarantee under the RRIF Program, please contact : Barbara Amani Chief, Credit Programs Division Federal Railroad Administration U.S. Department of Transportation (202) 493-6051 barbara.amani@dot.gov 12