2. Concept AAR saw concept in late July Allows freight railroads to “bank” their “match” funding for multiple and future corridor improvements Voluntary mechanism to allow railroads to get financial credit for underutilized and non-performing assets

3. Concept (cont.’d) Facilitate cost sharing for corridor improvements Facilitate improvements to national rail network Preservation of key railroad alignments

4. Benefits/Opportunities Mutual benefits –Railroads want to put the asset into MatchBank –Federal government want to bank the ROW Improve opportunities for viable intercity passenger rail services Supports the vital role of freight railroads in the national economy

5. Examples CSX “S” Line in North Carolina and Virginia –Shortest rail connection between Richmond and Raleigh –Today, half the line is unused; the other half only sees local service BNSF Raton Pass Line –Fewer and fewer through trains on this line –Likely an HSR routing for service between Denver and Albuquerque/Phoenix

6. Regulations Current guidance that may already cover implementation –OMB Circular A-87: Cost Principles –OMB Circular A-102: Grants and Cooperative Agreements –OMB Circular A-110: Uniform Administrative Requirements for Grants and Agreements Additional clarifying legislation?

7. Challenges Valuation –Current capital value and inflation/deflation protection Ownership –Public Lands Trust –Surface Transportation Board –Other?

8. Challenges (cont.’d) Preserve Competitive Positions –No sales or operating agreements with competitors Funding –Need to establish value to the federal government to enabling such alternatives.

9. Next Steps 1.) Discuss with Railroads 2.) Discuss with States 3.) Discuss with FRA 4.) Refine Concept

10. Thank you Discussion