Federal Matching Funds: Down Payment Edition

Note: The following post is from rafael, who offers an excellent discussion of federal matching funds.

Robert has kindly invited me to submit a blog entry on federal matching funds for Prop 1A.

HSR critics have repeatedly pointed out that federal and private matching funds for the California high speed project are not yet confirmed. Proponents retort that there is no chance of securing such funds until and unless California voters approve the proposition.

Nevertheless, even in the midst of the economic meltdown, Congress has been pressing ahead with its Rail Safety Improvement Act of 2008 (version H.R. 2095.EAH). Among other things, it includes $9.776 billion for Amtrak plus $1.5 billion for nationwide HSR development over the next 5 years. For the purposes of the bill, those are defined as systems capable of top speeds in excess of 110mph. The Amtrak-owned Northeast Corridor receives special consideration, but all 11 identified HSR corridors are eligible to submit proposals between 60 and 270 days after the bill is signed into law.

Unless it is knocked off the Senate schedule by new developments on the $700 billion TARP bill, it is expected that the final cosmetic amendments will be approved before Congress adjourns for the elections. President Bush had previously raised objections, e.g. on the nationwide installation of interoperable positive train control systems, ostensibly on the grounds that they are "not yet proven". Similar systems are already de facto standard equipment in e.g. Europe and Japan. The bill, which may well pass with a veto-proof majority, would make them mandatory by 2018.

If Prop 1A passes on Nov. 4, the state of California will have a very strong basis for making an early claim on the funds allocated by H.R. 2095 (assuming it, too, passes). At a minimum, the state should be looking for federal matches for the $190 million reserved for Amtrak California plus $900 million for the remaining preparatory HSR work required before construction can be put out to tender. Additional matches for HSR feeder services other than Amtrak and for HSR construction proper would be sought at a later date.

First, California should insist on leading the development of the next generation corridor train equipment pool, largely on the strength of work already done by Caltrain (Appendix C), NCTD and SMART. The objective should be to create a regulatory basis for the mixed operation of FRA-compliant freight trains and off-the-shelf passenger train designs designed to meet European crash safety standards (EN 12663 and EN 15227). This should include traditional locomotives, unpowered cars and self-propelled cars (DMU/EMU). Permitting mixed traffic under certain circumstances would reduce wear and tear on the tracks and, greatly reduce both acquisition and fuel costs. Moreover, Caltrain's results so far suggest crash safety in grade crossing accidents would be at least maintained if not improved.

Simply put, mapping a path toward mixed traffic will gradually reduce capital and operations overheads for both Amtrak and commuter rail services nationwide. It would greatly facilitate the public transport renaissance needed to deal with structurally high oil prices, chronic congestion on the roads (associated with productivity losses), air quality and CO2 emissions by the transportation sector.

Second, total ridership on Amtrak California's three corridors is second only to that of the NEC. There are solid arguments for installing PTC technology there as soon as possible, especially if lightweight rolling stock is ever to become the next national passenger rail standard. The definition of PTC should include the development and implementation of open software standards for emergency data communications between railroad dispatchers and even individual trains. At the the discretion of the Secretary of Transport, other railroads may also be required to implement PTC. The bill allocates a total of $250 million for implementation, with a requirement that non-federal sources must pick up at least 20% of the tab. In the wake of the Chatsworth disaster, California should position itself as the testbed state for PTC reliability and interoperability.

Third, California is furthest ahead in the development of a true high speed rail project (top speed in excess of 186mph). It will therefore blaze a trail in developing the ROW acquisition, detailed planning, vendor selection and engineering expertise required to construct and operate such a system. The other 10 identified HSR corridors will all benefit greatly from the experience that will be gained by an initial $900 million investment in the California system.

In particular, a new "High Speed Rail Academy" would be tasked with developing a cadre of homegrown specialists to be employed by state and federal oversight agencies, planning bodies, engineering firms, construction companies and operators. Given the large number of HSR projects around the world, the US cannot rely on the availbility of foreign talent alone. The academy would be a virtual organization leveraging universities, vendors, contractors and existing operators to provide formal certifications at multiple levels. Its research focus could be on HSR-specific safety issues (incl. e.g. anti-terror measures and wildlife trespass identification/prevention), on rail-wheel noise reduction to enable nighttime (cargo) operations at reduced speed and, on reliable low-latency broadband internet connectivity for both in-cab signaling and enhanced passenger information/productivity/entertainment options.