In Iowa, and nationwide, many issues and events are coming together to intensify interest in passenger rail services. These include attention to sustainable transportation alternatives, potential for economic growth, quality of life (comfortable, convenient travel for those who do not or cannot drive or fly), efficiencies, and the mutual benefit of upgraded infrastructure for freight and passenger rail.

The new federal Passenger Rail Investment Inprovement Act of 2008 (PRIIA) authorized for funds up to 80 percent of the capital expenditures for the development or improvement of intercity passenger rail. This program puts passenger rail within reach for many states, and has further fueled interest. This federal program must have funds appropriated before federal dollars are available to the states.In 2009, $90 million was appropriated requiring a 50 percent state match. The American Recovery and Reinvestment Act includes funding opportunities for passenger rail.

Iowa’s vision is a passenger rail network that connects Iowans to each other and the country, and makes Iowa a more attractive place to live, work and visit. The vision seeks to integrate passenger rail into the broader transportation system, and make it a significant contributor to improved mobility, economic competitiveness, community revitalization, and reduced fuel use and emissions. It is a vision where travel by train is comfortable, efficient and reliable. This is a long-term vision and goal. Additional passenger rail service will need to be implemented incrementally over time, based on market demand, operational feasibility and funding.

Iowa supports continuation and strengthening of Amtrak’s existing long-distance routes that connect the state to the national passenger rail system. Iowa is also exploring the feasibility of commuter rail as an option for travelers.

Plans for Rail Service in Iowa

A number of factors have come together that make this exactly the right time to move forward.

• The unpredictability of gas prices has increased interest by Iowans in both increased rail and transit options.  Drivers of all ages are looking for options to travel that are affordable, energy efficient and sustainable and do not involve being behind the wheel of a car. 
• Illinois is working to bring passenger rail to Iowa's borders at the Quad Cities and Dubuque. With an Illinois partnership on the route's cost, a minimal investment brings passenger rail to within Iowan's reach.
• Amtrak has completed feasibility studies with encouraging results for routes from Iowa City via Quad Cities to Chicago, and Dubuque to Chicago.
• The Passenger Rail Investment Improvement Act of 2008 (PRIIA) reauthorization act created a competitive grant program in 2008 to promote intercity passenger rail. 
• Worldwide, few intercity passenger rail systems are self-supporting.  Iowa would need to commit to a dedicated funding source to bridge the gap between ticket revenues and operating expense.

Iowa can apply to the federal government as early as this year for federal funding for capital investments for intercity rail projects. In 2009, $90 million was appropriated requiring a 50 percent state match. Iowa must have a state match on hand to apply for a grant.

The American Recovery and Reinvestment Act includes funding opportunities for passenger rail.

Most states, like Iowa, utilize an incremental planning approach for building their passenger rail systems. Those routes that receive initial federal funding are more likely to receive continued future funding necessary to complete them. Acting now, rather than later, may mean the difference between seeing passenger rail as early as 2010 or 2011, or a decade later.

Never has there been a better time to begin building Iowa's passenger rail system. Increasing interest and support, coupled with the potential to compete for federal funding for infrastructure improvements, make this time period a unique window of opportunity.

The Rail Passenger Service Act of 1970 created the National Railroad Passenger Corporation (Amtrak) to provide U.S. passenger rail service. Today, Amtrak continues to be the main provider of passenger rail services in the United States.

Amtrak’s long-distance routes, which generally are more than 500 miles in length and involve an overnight trip, are supported by ticket revenues and the federal government. No state funding is required to support long-distance Amtrak corridors. Iowa is served by two long-distance routes – the California Zephyr and Southwest Chief.

Intercity passenger rail consists of shorter-distance routes, generally 500 miles or less, several hours in length and focused on basic transportation, rather than the “travel experience”. Intercity routes typically connect larger cities and offer frequent travel schedules, which is important to the business traveler. Intercity passenger rail routes are state-sponsored (funded by the state or a combination of local and state funding, and ticket revenues).

Commuter rail refers to short-distance routes between nearby cities or suburbs to city center that supports commuting trips to and from work. Commuter rail services, such as the one in the Northeast Corridor (runs between Boston, Massachusetts and Washington, D.C.), typically operate on railroads run by state and local governments. A passenger transportation funding study, currently under way, will look at commuter rail service in Iowa.

Nearly all passenger rail service worldwide is supported by government investment. The Passenger Rail Investment Improvement Act of 2009 (PRIIA) creates a program that allows states to apply for up to 80 percent federal funding for capital expenditures to encourage the expansion of intercity passenger rail. This federal program must  have funds appropriated before federal dollars are available to states. State funds required for the match must be available to apply for the competitive grant program. Additional state dollars will be needed to make up the difference between ticket revenues and operating costs. Local funding will be needed for constructing new stations or making station improvements.

The American Recovery and Reinvestment Act includes funding opportunities for passenger rail.

To implement intercity passenger rail service from Iowa City to Chicago (via the Quad Cities), and Dubuque to Chicago, an investment of $3 million annually is needed from the State of Iowa. The initial capital investment would be used for making track improvements and purchasing passenger rail equipment. Subsequent funding would support an annual operating subsidy necessary to bridge the gap between actual expenses and ticket revenues once service is in place. A state appropriation authorized during the 2009 legislative session would allow Iowa to compete at the federal level for intercity passenger rail funding for infrastructure improvements this year.

An initial state appropriation of $3 million would be used as a state match for a federal infrastructure grant application. This would leverage federal assistance through the Federal Railroad Administration's Capital Assistance for Intercity Passenger Rail Service Program that was authorized in the Passenger Rail Investment and Improvement Act of 2008 (PRIIA). If awarded, state and federal funding could be used to make capital improvements (tie ... installation) between the Quad Cities and Iowa City, as well as track improvements in Dubuque. The amount of federal funding leveraged by the state investment depends on the conditions of the federal appropriation. For example, in FY 2009, $90 million was appropriated requiring a 50 percent state match, making a state investment of $3 million leverage $3 million in federal assistance. In future years, the federal match may increase up to 80 percent.

The Iowa Department of Transportation’s (DOT) goal is to support and establish transportation options across all transportation modes in a mix that promotes Iowan’s mobility and safety, allows for individual choice, enhances Iowans’ quality of life, and is environmentally sensitive. The Iowa DOT is determining the state’s priorities regarding passenger rail in several ways, including the following.

• State Transportation Plan, which is developed by gathering input from hundreds of Iowans [currently being updated]
• State Rail Plan, which provides more specifics on the priorities for freight and passenger rail [currently being updated]
• Passenger Rail Advisory Committee, which provides advice and input into the prioritization process for various passenger rail efforts
• Iowa Transportation Commission, comprised of seven members from around the state appointed by the Governor, charged with making final funding and programming decisions for various modal projects, and by virtue of doing so helps establish priorities

Many Iowans and visitors will use a passenger rail service that is efficient and comfortable – business persons, families, students, senior citizens, leisure travelers, and those who cannot or will not fly or drive. Passenger rail users will include every age and type of traveler.