Andrew, of the things to worry about with regards to Amtrak funding sources, the amount left in the RRIF authorization is way down the list. RRIF is authorized to distribute $35 billion total in federally backed loans with, according to the FRA website, $7 billion reserved for non Class 1 railroads. Since Amtrak is, IIRC, actually a Class 1 railroad that leaves $28 billion, with perhaps $1 to $2 billion used so far. RRIF is one of the most underused of the federal loan programs because of the strings attached and terms.I think over $32 Billion is left in RRIF--and Amtrak is anticipated to take out a RRIF loan for new Acela train-sets shortly.
According to the RRIF Website, https://www.fra.dot.gov/Page/P0128Andrew, of the things to worry about with regards to Amtrak funding sources, the amount left in the RRIF authorization is way down the list. RRIF is authorized to distribute $35 billion total in federally backed loans with, according to the FRA website, $7 billion reserved for non Class 1 railroads. Since Amtrak is, IIRC, actually a Class 1 railroad that leaves $28 billion, with perhaps $1 to $2 billion used so far. RRIF is one of the most underused of the federal loan programs because of the strings attached and terms.I think over $32 Billion is left in RRIF--and Amtrak is anticipated to take out a RRIF loan for new Acela train-sets shortly.
Xpress West applied for $5.5 billion, which they were unable to qualify for. XW in combination with the new NV HSR Authority might try again for RRIF, or a TIFIA type program, or private activity bonds. But even if XW were to qualify for a circa $6 billion RRIF loan, that would still leave plenty for Amtrak and CHSRA to draw on. That is, if they can qualify or, in the case of Amtrak, Congress outright gives Amtrak in effect a $14 billion RRIF line of credit to draw on.
And if you don't get Gateway done, how do you possibly grow the capacity into New York City, and help Amtrak better deal with redundancy in the event of a stalled train?Just because the NEC is profitible under some analyses does not mean it is making money hand over fist. If you saddle the corridor with massive debt to get Gateway done, that means you have no cash for the B&P tunnels, DC's Long Bridge, the various drawbridges in CT, the stressed electrical infrastructure, Amfleet replacements, etc.
Andrew, this is a thread on Xpress West, not Amtrak. Unfortunately I responded to your post about RIFF which helped to take this thread off-topic. If you want to continue to discuss Gateway and how to pay for it, post in the NEC Gateway thread.And if you don't get Gateway done, how do you possibly grow the capacity into New York City, and help Amtrak better deal with redundancy in the event of a stalled train?
Yeah added track capacity is great, but what good does it do you if your substations start blowing up because you've got too many locomotives drawing the from the caternary? Or what about when you can run all the trains out of New York you want, but you can't stuff them through Baltimore?And if you don't get Gateway done, how do you possibly grow the capacity into New York City, and help Amtrak better deal with redundancy in the event of a stalled train?Just because the NEC is profitible under some analyses does not mean it is making money hand over fist. If you saddle the corridor with massive debt to get Gateway done, that means you have no cash for the B&P tunnels, DC's Long Bridge, the various drawbridges in CT, the stressed electrical infrastructure, Amfleet replacements, etc.
I never said anything about a RRIF Loan paying for the whole thing!Yeah added track capacity is great, but what good does it do you if your substations start blowing up because you've got too many locomotives drawing the from the caternary? Or what about when you can run all the trains out of New York you want, but you can't stuff them through Baltimore?And if you don't get Gateway done, how do you possibly grow the capacity into New York City, and help Amtrak better deal with redundancy in the event of a stalled train?Just because the NEC is profitible under some analyses does not mean it is making money hand over fist. If you saddle the corridor with massive debt to get Gateway done, that means you have no cash for the B&P tunnels, DC's Long Bridge, the various drawbridges in CT, the stressed electrical infrastructure, Amfleet replacements, etc.
The whole corridor needs so much investment it's not even funny, and if Amtrak tries to borrow the cash to do so the debt service is going to cripple them until the end of time. A modern NEC is not going to happen without government grants, end of story. RRIF loans can be part of the funding mix, but expecting them to pay the whole thing is gonna be a long time waiting for a ship that won't come in.
I just still don't think the the RRIF Loan will pay for the ENTIRE Gateway Tunnel Resielency Project. NJ Transit and the MTA's Long Island Rail Road will be a part of this project, so New Starts funding should get available, CMAQ funds as well, and perhaps some money from a future multi-year federal transportation bill...Amtrak won't get to set the commuter rail fees any more, if the PRIIA provisions ever get implemented. :sigh: The new fee structure *may* create a possibility of NJ Transit paying higher fees for use of new tunnels which Amtrak could then use as a revenue stream to pay back an RRIF loan. Or it may not -- it's very unclear to me what the new fee structure actually will be.
Cuomo and Christie want the Fed's to pay for half of Gateway.I just still don't think the the RRIF Loan will pay for the ENTIRE Gateway Tunnel Resielency Project. NJ Transit and the MTA's Long Island Rail Road will be a part of this project, so New Starts funding should get available, CMAQ funds as well, and perhaps some money from a future multi-year federal transportation bill...Amtrak won't get to set the commuter rail fees any more, if the PRIIA provisions ever get implemented. :sigh: The new fee structure *may* create a possibility of NJ Transit paying higher fees for use of new tunnels which Amtrak could then use as a revenue stream to pay back an RRIF loan. Or it may not -- it's very unclear to me what the new fee structure actually will be.
And remember, commuter rail fees will go up by $100 million this October 1st, and another $105 million on October 1st of 2018. I'd bet they go up again at least once at some other point between 2018 and 2030.
There has also been talk about cost-sharing for the Gateway Program as well: http://www.njspotlight.com/stories/14/10/22/analysis-new-jersey-facing-hefty-price-tag-for-new-rail-tunnels/
Let's not forget Port Authority contributing to Gateway, but I still don't see how RRIF wouldn't be a part of Gateway.
Are you saying that you think Congress will end providing some Gateway money?Why should they when highways continue getting 80% and 90% match from the Feds?
That won't happen now. The whole thing will be built without US Government money. Technically it won't even have to follow Buy American rules.FWIW, I expect that XPressWest with the new Nevada HSR Authority will probably go back around and apply for another RRIF loan. They'll probably have to promise to meet the Buy America rules. There will still be loads of money left in the RRIF revolving fund.
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