High-Speed Rail in AmericaFrom frenzy to foundation

Paul Nissenbaum2011 National SCORT Meeting | Charlotte, NCSeptember 12, 2011

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Contents

1. Establishing the foundation: program status

2. Building on the foundation: where we go from here

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Establishing the foundation:Program status

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4

FY2008 FY2009 FY2010 FY2011 FY2012$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

RRIF Other Grants* Amtrak** HSIPR

End of Fiscal Year

Acti

ve F

undi

ng (o

blig

ated

) $ M

Substantial increases in passenger rail funding

* e.g. rail line relocation, disaster recovery, etc.** assumes FY2012 appropriation for Amtrak is identical to FY2011

PRIIA

ARRA(HSR: $8BAmtrak: $1.3B)

FY10(HSR: $2.1B)

ARRA and FY10 appropriated ~3x more for HSR than contemplated in PRIIA

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– $4,894M (48%), including 61% of ARRA funding – $7,421M (74%), including 90% of ARRA fundingCurrent obligations

LEGENDCore Express

Regional

Emerging

Other Intercity Rail Routes

States Receiving HSIPR Grants

March 2011September 2011

…but none of us are here just to “obligate.”

We’re here to substantially improve the nation’s passenger rail system…

CONSTRUCTION: Construction is underway throughout the nation

Construction in Illinois

EQUIPMENT: 400 locos/cars in procurement process; 4 national specs

Bilevel locomotive on the Pacific Surfliner

MANUFACTURING: New or expanded plants in TX, PA, IN, CA, NY

GE manufacturing facility in Fort Worth

COMMUNITY CONNECTIONS: supporting vibrant development in station areas; $200M in Normal, IL

Normal, Illinois

Top and middle: Brunswick, Maine

PLANNING: 47 state rail plans completed or in progress; 22 corridor plans underway

Pennsylvania State Rail Plan

MULTI-STATE COORDINATION: NEC states; Southwest planning; Midwest

Acela on the Northeast Corridor

PIPELINE: $300M for engineering and environmental studies on 12+ corridors

AGREEMENTS & PARTNERSHIPS: SOAs with 4 Class I RRs + 4 other RRs

MONITORING: monitoring program underway

Englewood Flyover in Illinois

Building on the foundation:Where we go from here

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Moving forward – three focus areas

Pivoting from foundation to execution

• Executing great projects – on time, on budget, and better tracking & communicating project successes

• Making the case for HSR – better explain the need for investment in passenger rail

• Capacity-building and technical assistance – continue to grow our resources, knowledge, best practices

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3

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Executing great projects

Shifting from obligations to outlays – partnership to advance project delivery

• Finalizing detailed scopes, schedules, budgets

• Meeting special conditions and other prerequisites

• Tracking milestones to demonstrate progress, celebrate success, align resources

• Developing additional technical assistance resources

• Monitoring – identify issues and challenges early –work together to resolve

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Climate Change+17% GHG emissions (1990-2007)(Source: U.S. Environmental Protection Agency)

High Costs$1 trillion per year(Source: Bureau of Transportation Statistics)

Population Growth+118 million people (2010-2050)(Source: U.S. Census Bureau)

Oil Dependency14m barrels/day fortransportation.(Source: U.S. Energy Information Administration)

Congestion$125 billion/year(Sources: Texas Transportation Institute; Air TransportAssociation)

Moving forward – making the case for HSR

Five challenges we must address to

remain economically competitive in the 21st century and beyond

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Climate Change+17% GHG emissions (1990-2007)(Source: U.S. Environmental Protection Agency)

High Costs$1 trillion per year(Source: Bureau of Transportation Statistics)

Population Growth+118 million people (2010-2050)(Source: U.S. Census Bureau)

Oil Dependency14m barrels/day fortransportation.(Source: U.S. Energy Information Administration)

Congestion$125 billion/year(Sources: Texas Transportation Institute; Air TransportAssociation)

HSR has high capacity to help accommodate growth with limited

environmental footprint

Moving forward – making the case for HSR

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HSR is highly energy-efficient and can help reduce reliance on oil

Climate Change+17% GHG emissions (1990-2007)(Source: U.S. Environmental Protection Agency)

High Costs$1 trillion per year(Source: Bureau of Transportation Statistics)

Population Growth+118 million people (2010-2050)(Source: U.S. Census Bureau)

Oil Dependency14m barrels/day fortransportation.(Source: U.S. Energy Information Administration)

Congestion$125 billion/year(Sources: Texas Transportation Institute; Air TransportAssociation)

Moving forward – making the case for HSR

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HSR can provide a reliable alternative to driving or flying in the nation’s congested

megaregions

Climate Change+17% GHG emissions (1990-2007)(Source: U.S. Environmental Protection Agency)

High Costs$1 trillion per year(Source: Bureau of Transportation Statistics)

Population Growth+118 million people (2010-2050)(Source: U.S. Census Bureau)

Oil Dependency14m barrels/day fortransportation.(Source: U.S. Energy Information Administration)

Congestion$125 billion/year(Sources: Texas Transportation Institute; Air TransportAssociation)

Moving forward – making the case for HSR

Metro areas: 2+ million pop. (2030 proj.)

Metro areas: 1-2 million pop. (2030 proj.)

Metro areas: 0.5-1 million pop. (2030 proj.)

Top 10 congested airports

Top 10 congested roads

Top 10 in both categories

Megaregions

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HSR releases far less carbon dioxide than other modes of travel; the

difference is even larger if powered by clean energy

Climate Change+17% GHG emissions (1990-2007)(Source: U.S. Environmental Protection Agency)

High Costs$1 trillion per year(Source: Bureau of Transportation Statistics)

Population Growth+118 million people (2010-2050)(Source: U.S. Census Bureau)

Oil Dependency14m barrels/day fortransportation.(Source: U.S. Energy Information Administration)

Congestion$125 billion/year(Sources: Texas Transportation Institute; Air TransportAssociation)

Moving forward – making the case for HSR

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Climate Change+17% GHG emissions (1990-2007)(Source: U.S. Environmental Protection Agency)

High Costs$1 trillion per year(Source: Bureau of Transportation Statistics)

Population Growth+118 million people (2010-2050)(Source: U.S. Census Bureau)

Oil Dependency14m barrels/day fortransportation.(Source: U.S. Energy Information Administration)

Congestion$125 billion/year(Sources: Texas Transportation Institute; Air TransportAssociation)

Moving forward – making the case for HSR

HSR can help us balance the nation’s transportation network, expanding

choices for transportation

% of total PMT by mode, by country

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Diverse coalition of supporters helping us “make the case”

Not just the “usual suspects” supporting rail investments…

“High-speed rail is a smart investment for today. Businesses will invest where they know the routes are coming, which means public leaders need to stand up and make their commitment clear.” —St. Louis Regional Chamber and Growth Association, September 2010

“With the U.S. Chamber of Commerce and the AFL-CIO standing together to support job creation, we hope that Democrats and Republicans in Congress will also join together to build America's infrastructure.” —US Chamber and AFL-CIO

“Rail will lift our Valley up.” —Steve Geil, President, Fresno County Economic Development Corporation

In June 2011, the US Conference of Mayors approved a resolution in support of the Obama Administration’s high-speed rail initiative.

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American Jobs Act

• $50 billion for transportation

o $4b – high-speed rail network development

o $2b – intercity passenger rail system presevation

o $5 billion for TIGER/TIFIA

• National Infrastructure Bank - $10 billion capitalization

Building a world-class transportation system is part of what made us an economic superpower.  And now we’re going to sit back and watch China build newer airports and faster railroads?  At a time when millions of unemployed construction workers could build them right here in America? —President Barack Obama, September 8, 2011

“Rebuilding and modernizing America”

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Program critiques

Some skeptics have asked…

– “Is the program too big?” – “Who is going to pay for the program?”– “Is such a project truly an anti-recession measure?”– “Will the program further expand the power of the federal

government?”– “How much of a stimulus will the program be to industry?”

“The Great Highway Program”, Fortune Magazine, Sept. 1958

1958

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FRA’s Regional Managers and support teams

Dedicated support for every project and state

CT

DE

RI

WA

CA

NV

ID

MT

AZ NM

CO

UT

WY

OR

NE

SD

ND

MO

IA

MN

WI

IL

MI

IN

OH

OK

TX

LA

TN

KY

MS

FL

ALGA

WV

NH

ME

NY

PA

AR

VA DC

KS

NC

SC

WestMountain – Leo Wetula

Northwest – Ramon Munoz-Raskin

Southwest – Melissa DuMond

VT

NH

MA

NJ

CentralEastern – Wynne Davis

Western – Wendy Messenger

SouthHeartland – Catherine Dobbs

Gulf – Randy Brown

EastNortheast – Rebecca Reyes-Alicea

Northern Northeast and Southeast – Trevor Gibson

MD