California State Rail Plan 2007-08 to 2017-18

Chapter XVIII – FundingUnder the PNRS, three projects are notable in this discussion. A continuation ofthe Alameda Corridor project, the Alameda Corridor East (ACE) provides for131 grade separations and other grade crossing improvements over the three mainUP and BNSF rail lines radiating east of Los Angeles through the counties ofLos Angeles, Orange, San Bernardino and Riverside. The project will facilitatethe movement of international traffic from the Ports of Los Angeles and LongBeach as well as domestic traffic to and from Southern California. Theapproximate cost of the project for the grade separation portion alone is currentlyestimated at $4.6 billion. $125 million in PNRS funds were earmarked for thegrade separations. If you count all federal bill earmarks, a total of $210.5 millionwas earmarked in that legislation for ACE grade separation projects.The Heartland Corridor Project focuses on the upgrade of the Norfolk Southernline between Norfolk, Virginia and Columbus, Ohio through West Virginia toprovide double-stack clearance capability with tunnel improvements and otherprojects. The benefit would be the increase in intermodal freight rail traffic andthe reduction of highway congestion on a multi-state highway corridor.The federal contribution will be slightly less than $100 million in total.The State of Illinois and City of Chicago have joined with passenger and freightrailroads serving the Chicago region to establish the Chicago RegionEnvironmental and Transportation Efficiency Program (CREATE).The major goals are to improve efficiency of the railroads, improve safety, provideair quality benefits and reduce highway and rail traffic congestion. In total, theprogram is a $1.5 billion public-private partnership effort. Although not fullyfunded, $100 million in PRNS funding is earmarked for the project. To date thefive Class I railroads involved have committed $100 million, while Chicago hascommitted $30 million and the State of Illinois $100 million pending legislativeapproval.Other Rail Investment ProgramsRail funding through the federal government has also been provided under bothSAFETEA-LU and its predecessor, the Transportation Equity Act for the21 st Century (TEA-21). Under Section 9003 of SAFETEA-LU, Rehabilitation andImprovement Funding, priority will be given to projects that enhance service andcapacity for shippers in the national rail system. Quite often these funds arecomplemented by funds from other levels of government.Among other programs, which have funding and could benefit freight rail, are:• Section 130 Rail-Highway Grade Crossing Program. Under this program,the entire cost of construction of projects for the elimination of hazards ofrail-highway crossings can be funded.• Congestion Management and Air Quality Improvement Program (CMAQ).This program provides funding for projects to improve air quality in non-251