California State Rail Plan 2007-08 to 2017-18

2007-08 – 2017-18 California State Rail Planfor train service, and Norfolk Southern agreed to compensate the state over a 20-year period based on its use of the bridge.The Shellpot Bridge will be the first toll bridge for railroad cars in the country.Through a toll system, Norfolk Southern will repay DelDOT over the next20 years. An electronic scanner will count the number of rail cars that cross thebridge by reading a magnetic placard that is mounted on every railcar. This typeof "bar scanning technology" (similar to a grocery store checkout line) is currentlyused by rail companies to keep tabs on cars along many thousands of miles oftrack across North America. Shellpot will become the first facility to takeadvantage of this to charge, and collect a toll. Norfolk Southern will pay DelDOTan annual minimum, regardless of traffic. The sliding scale adopted has the tollranging from $35 per car for the first 5,000 that cross the bridge annually, to only$5 per car after 50,000 crossings.These examples could provide insights into additional funding strategies forconsideration in California.USER FEESThe California Legislature—concerned about the impacts of goods movementactivities on adjacent communities, and the lack of resources directed toaddressing these impacts—advanced several bills during the 2007 legislativesession.On of them, Senate Bill 974, would require the Ports of Los Angeles, Long Beach,and Oakland to collect a user fee on the owner of container cargo moving throughthe Port of Los Angeles, the Port of Long Beach, or the Port of Oakland at a rateof $30 per twenty-foot equivalent unit (TEU) or $60 per forty-foot equivalent unit(FEU). The bill would require the fees be used to fund projects for all modes thatimprove the flow and efficiency of container cargo to and from those ports.It is estimated that $500 million would be generated annually for these projects,including freight rail. This revenue stream could be a potential source of freightrail project funding, and might include the short line railroad industry, whichserves these ports. SB 974 is currently on the “inactive” file. Whether or not it isultimately adopted and signed by the Governor, this bill and its companionlegislation highlight the intent of the legislature to attempt to find solutions tofunding environmental mitigation for goods movement projects that does notdepend solely on existing transportation or emissions reduction funding sources.254