(The BLE’s Pennsylvania State Legislative Board distributed the following article on December 3.)
CAMP HILL, Pa. — The U.S. Senate moved this week to beef up rail infrastructure investments over the next six years, according to Linda Rhinehart, a public affairs executive monitoring rail issues in Harrisburg.
The American Railroad Revitalization Investment and Enhancement Act, or ARRIVE 21, is designed to establish funding to promote improvements to the passenger and freight rail systems.
“The bill’s sponsors — which include Arlen Specter, R-PA — say the legislation provides a guaranteed funding source to raise $30 billion in tax-credit bonds to fund rail infrastructure development,” Rhinehart said.
The bill creates a non-profit, public-private partnership — the Rail Infrastructure Finance Corp. which would issue the bonds and award grants to states for freight rail capital projects that benefit the public.
“The funding will be used for rail safety and security projects,” Rhinehart said, “as well as rail line rehabilitation and upgrades and intermodal facilities.”
The bill’s sponsors — Sens. Ernest Hollings, D-SC; Susan Collins, R-ME; Tom Carper, D-DE; Arlen Specter, R-PA; Jim Jeffords, I-VT; and Joseph Biden, D-DE — said the legislation provides a guaranteed funding source to help reduce traffic congestion and improve the movement of freight.
Sponsors said the dedicated funding mechanism would be similar to those used in the aviation and highway modes, in which user fees go into a trust fund to pay for infrastructure improvements.
“Details about where the money would come from are not available yet,” Rhinehart said, “because the original bill has not been published. However, the funding formula discussed suggests that states must contribute a 20-percent match for each project, similar to requirements for other transportation investments,” she added.
Rhinehart said that hearings are underway now in the Pennsylvania legislature to address this issue.