Section 209 Activity Report

1. Federal Railroad Administration Section 209 Activity Report September 12, 2011

2. FY 2012 budget proposal for passenger rail programs – Crosswalk from FY10 *Activities previously funded under this line item are now included in other Network Development and System Preservation & Renewal account activities.

3. State of Good Repair & Recapitalization – $150M OBJECTIVE: To ensure public assets function as designed to provide safe and reliable passenger rail service and replacing those assets at the end of their useful life State of Good Repair – “A condition in which the existing physical assets… are functioning as designed within their useful lives and are sustained through regular maintenance and replacement programs.” Life-cycle costs – Funding is allocated as an annual share of the total cost over the infrastructure or fleet’s entire useful life. Expanding role over time – Assets from completed Network Development projects will become eligible for SGR&R funding once entering revenue service.

4. Section 209 Capital Charge • FRA proposed a State of Good Repair and Recapitalization program within its System Preservation and Renewal program in the FY 2012 budget request • Program Objective – Ensure public assets are maintained and renewed to ensure a state of good repair and reserves for replacement • Eligible recipients – Amtrak, a State or group of States, political subdivisions of a State, local governmental infrastructure-owning entity, and regional, multi-state entities • Anticipated Federal share of total project costs – up to 80% • Identification of projects – Work with the USDOT to identify projects necessary to maintain existing physical assets (used fully or partially in intercity passenger rail service) in a state of good repair, or return such assets to a state of good repair • Equipment overhauls • Station and facility projects • Recapitalization of publicly owned infrastructure

5. Capacity-Building and Transition Assistance – $378M Capacity-Building Transition Assistance • OBJECTIVE: To help build professional expertise and institutional capacity in the field of rail transportation • Assistance for: • Technical assistance and training programs • R&D to speed innovation • Available to government and private entities • OBJECTIVE: To encourage the success of existing State-supported passenger rail operations and new corridor operations • Operating assistance for: • Implementing PRIIA §209, State-supported routes • Start-up phase of new corridors • Available to States and service operators

6. Section 209 Operating Costs • FRA proposed a Transition Assistance program within its Network Development program in the FY 2012 budget request • Program Objective – Provide for successful implementation of Section 209 by providing operating assistance through no later than FY 2017, and to encourage the successful launch of new services by providing operating assistance during the start-up years of new Core Express, Regional and Emerging services (including additional frequencies on existing services) • Eligible recipients – Amtrak, a State or group of States, an Interstate Compact, a public agency established by one or more States and having responsibility for providing high-speed or intercity passenger rail service, or a high-speed or intercity passenger rail service operator