WASHINGTON — States and other sponsors of high-speed rail projects must submit pre-applications for a share of the more than $8 billion of available funding no later than July 10, the Federal Railroad Administration said this week in interim guidance that outlines the criteria for such projects.
The agency will favor projects that further the stimulus law’s agenda of job creation, “particularly in economically distressed areas,” and provide other benefits such as energy efficiency, according to the 68-page document.
The railroad regulator also will give higher priority to projects that have reasonable financial estimates and “availability of operating financial support,” the FRA guidance stated.
Stakeholders in economically distressed California responded with optimism, saying the state will be well-positioned to receive funds. California’s voters last year approved $9 billion of bonds to finance high-speed rail.
California is “more advanced than any other state in the nation in planning and [has] already legislatively cleared the way for public-private partnership authority in this area,” said California Recovery Task Force head Cynthia Bryant.
However, California and other applicants will have to meet the tight deadlines
that have been characteristic of recovery-funded infrastructure programs, which are aimed at ready-to-go projects.
“Applications may not be considered if pre-applications are received after July 10,” unless there are “special, compelling circumstances,” the FRA warned in the guidance.
The pre-application is a simple form designed to give the agency an early assessment of the universe of projects so that it can provide any needed feedback for completion of the full applications, which must be submitted by either Aug. 24 or Oct. 2, depending on the type of project and funding being requested.
“I believe that by September we will receive applications. Some will come from a state, multi-states, or regions,” Transportation Secretary Ray LaHood told members of a Senate Appropriations panel yesterday.
LaHood also defended the sufficiency of the federal funding.
“The idea that $8 billion may not be enough is nonsense,” he said at the hearing. “It’s eight times more than we’ve ever had before.”
The interim guidance was released one day after LaHood announced that the Obama administration will seek to extend by 18 months the soon-to-expire highway authorization in order to give Congress more time to pass a new bill.
In order to do that, the administration will have to work with Congress and the Office of Management and Budget to find a way to fix highway trust-fund shortfalls so that states and localities can continue to be reimbursed for construction expenses, LaHood said.
The announcement put the White House at odds with House Transportation Committee chairman James L. Oberstar, D-Minn., who said extending the current law would be “unacceptable.”
However, Oberstar and the administration seem to be in agreement about funding high-speed rail.
Oberstar’s blueprint for the forthcoming highway bill includes funding to develop 11 authorized high-speed rail corridors between major metropolitan regions around the country.
The legislation also would allow the Transportation Department to provide funding from a national infrastructure bank to help finance loans, loan guarantees, lines of credit, private-activity bonds, and tax-credit bonds to pay for high-speed rail construction.
