Via the California High Speed Rail Blog comes this excellent analysis of John Kerry’s HSR bill from Yonah Freemark at The Transport Politic. If you remember, we were doing some investigating on this bill in September and it was officially announced in November.
He points out, interestingly, that the bill establishes an Office of High-Speed Passenger Rail within the Federal Railroad Administration. He’s hoping that such a move will give the FRA a new focus in passenger rail, particularly with regard to regulations requiring passenger trains to be a certain weight, limiting speed:
If passed, the bill would create an “Office of High-Speed Passenger Rail” (we’ll call it OHSR here) which would operate within the Federal Railroad Administration. This would dramatically alter the priorities of the FRA, whose principal focus in recent years has been on improving the freight rail system in the United States. One wonders if FRA’s “safety” precautions, which require passenger rail trains in the United States to be far heavier than similar vehicles in the rest of the world, will be slowly phased out as the FRA’s mission is repositioned towards high-speed rail. Such a change, which would mean great monetary savings for rail operators around the nation in equipment purchases, might be necessary if a true HSR program is to be implemented.
Here’s a breakdown of the money over the bill’s five-year lifespan, which comes to about $5 billion every year:
In a five-year period, the bill would authorize the following:
- $8 billion in tax-exempt bonds to qualified high-speed rail programs
- $10 billion in tax-credit bonds to “super high-speed” rail programs (we’ll get to this in a minute)
- $5.4 billion in tax-credit bonds to other high-speed rail prgrams
But rather than creating a top-down federal network and policy, like the Interstate Highway System, the money would be distributed to states and organizations applying for project funding. While not necessarily good news, it’s not terrible news either. Devolution has long been the standard with new rail projects, but that’s mostly because the federal government never cared enough to get too involved. But this means that well-organized projects such as the Midwest HSR plan and California High Speed Rail will be able to move in on much needed federal funds. Other states that don’t have their act together will probably be left out.
Also, federal funds allotted to California will probably be insufficient for the project’s need unless the bill is renewed in 2014. The CAHSR blog remains cautiously optimistic about this:
Of course we’ll likely be well into the construction phase by that point, and it’s harder to kill a spending program once it’s in place than to kill it at the proposal stage. States that have used the OHSR funds to start HSR projects will not look kindly on Congress or the White House refusing to renew their funding.
At any rate, Kerry’s bill is looking good. A nationwide standard for high-speed rail might be a better way to go, but that’s politically more difficult. It’s hard to disagree with this massive step in the right direction, but we’ll see how things play out for this plan on Capitol Hill. Also, be sure to check out the whole analysis over at The Transport Politic if you have the time. Well worth the read.